Beacon Financial Corp (BBT) 2024 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Berkshire Hills Bancorp fourth-quarter 2024 earnings conference call. (Operator Instructions) This call is being recorded on January 30, 2025.

女士們、先生們，早安，歡迎參加伯克希爾山銀行 2024 年第四季財報電話會議。（操作員指示）此通話於 2025 年 1 月 30 日錄音。

I would now like to turn the conference over to Kevin Conn, Investor Relations Officer. Please go ahead.

現在，我想將會議交給投資者關係官 Kevin Conn。請繼續。

Good morning, and thank you for joining Berkshire Bank's fourth-quarter earnings call. My name is Kevin Conn, Investor Relations and Corporate Development Officer. Here with me today are Nitin Mhatre, Chief Executive Officer; Sean Gray, Chief Operating Officer; Brett Brbovic, Chief Financial Officer; and Greg Lindenmuth, Chief Risk Officer.

早安，感謝您參加伯克希爾銀行第四季財報電話會議。我叫 Kevin Conn，是投資人關係和企業發展長。今天和我一起在場的還有執行長 Nitin Mhatre；肖恩‧格雷 (Sean Gray)，營運長； Brett Brbovic，財務長；以及首席風險長 Greg Lindenmuth。

Our remarks will include forward-looking statements and refer to non-GAAP financial measures. Actual results could differ materially from those statements. Please see our legal disclosure on page 2 and 3 of the earnings presentation referencing forward-looking statements and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our news release.

我們的評論將包括前瞻性陳述並參考非公認會計準則財務指標。實際結果可能與這些陳述有重大差異。請參閱收益報告第 2 頁和第 3 頁中引用前瞻性陳述和非 GAAP 財務指標的法律揭露。我們的新聞稿中包含了非 GAAP 指標與 GAAP 指標的對帳表。

At this time, I'll turn the call over to Nitin. Nitin?

現在，我將把電話轉給尼廷。尼廷？

Thank you, Kevin. Good morning, everyone, and thank you all for joining us today. I'll begin my comments on slide 4, where you can see the highlights for the fourth quarter and for full-year 2024. We had a strong quarter with robust improvement in the operating earnings quarter over quarter and year over year.

謝謝你，凱文。大家早安，感謝大家今天的參加。我將從第 4 張投影片開始發表評論，您可以在此看到第四季度和 2024 年全年的亮點。我們本季表現強勁，營業利潤較上一季及去年同期均大幅提升。

Operating EPS of $0.60 was up 3% linked quarter and up 28% year over year. Operating net income of $26 million was up 5% linked quarter and up 29% year over year. Operating ROTC was 9.93%, up 2 basis points linked quarter and up 103 basis points year over year. The outperformance in the quarter was driven by strong fee revenues that were up 8% linked quarter, coupled with stable credit provision expenses and lower operating expenses, which were down 2% linked quarter and down 6% year over year. This is the fourth year in a row where we've outperformed our peer median in terms of year-over-year expense trend. We've included a slide in the appendix to show that expense trend data relative to our peers.

營業每股收益為 0.60 美元，季增 3%，年增 28%。營業淨收入為 2,600 萬美元，季增 5%，年增 29%。營運 ROTC 率為 9.93%，季增 2 個基點，較去年同期成長 103 個基點。本季的優異表現得益於強勁的費用收入（季增 8%），加上穩定的信貸準備金支出和較低的營運支出（季減 2%，年減 6%）。這是我們的年比支出趨勢連續第四年超越同業中位數。我們在附錄中附上了一張投影片，展示了相對於同業的費用趨勢數據。

Asset quality and balance sheet metrics remain strong. Net charge-offs were 14 basis points of loans and our reserve to loans was flat to the third quarter at 122 basis points of loans. Delinquencies and non-performing loans were at 52 basis points of loans, the lowest level in almost 20 years, a solid testament to the strength of our collaborative risk culture across our frontline bankers and the risk teams. Capital ratios were up linked quarter with CET1 at 13.0% and TCE at 9.4%. Average deposits were up 3% and average loan balances were up 0.4% linked quarter. Liquidity remains solid with our loans to deposit ratio at 96% on an average basis.

資產品質和資產負債表指標依然強勁。淨沖銷為貸款的 14 個基點，我們的貸款準備金與第三季持平，為貸款的 122 個基點。拖欠和不良貸款佔貸款總額的 52 個基點，為近 20 年來的最低水平，有力證明了我們一線銀行家和風險團隊之間的協作風險文化的強大。資本比率與上季同期相比有所上升，其中 CET1 為 13.0%，TCE 為 9.4%。平均存款季增 3%，平均貸款餘額較上季上漲 0.4%。流動性依然強勁，我們的貸款與存款比率平均為 96%。

As anticipated, our focus on deposit gathering and associated strategic initiatives for the previous few quarters have gained traction in the second half of 2024. Total deposit costs were down 12 basis points linked quarter and total funding costs were down 17 basis points linked quarter. We expect funding costs to decline as the Fed cuts interest rates further, and like many banks we continue to move deposit rates lower in the fourth quarter.

正如預期的那樣，我們在前幾季對存款收集和相關策略措施的關注在 2024 年下半年獲得了發展動力。總存款成本較上季下降 12 個基點，總融資成本較上季下降 17 個基點。我們預計，隨著聯準會進一步降息，融資成本將會下降，和許多銀行一樣，我們在第四季繼續降低存款利率。

On strategy front, we made steady progress on our strategic initiatives in 2024. We've successfully executed on variety of expense optimization initiatives, sold 10 branches in New York to tighten our network, further de-risked the balance sheet, and invested in bankers and technology to further improve the client experience reflected in our Net Promoter Score that remained above 60 in the fourth quarter. As you know, in December, we announced a merger of Equals with Brookline Bancorp to create a preeminent Northeast franchise.

在策略方面，我們在 2024 年的策略舉措取得了穩步進展。我們成功執行了各種費用優化舉措，出售了紐約的 10 家分行以加強我們的網絡，進一步降低了資產負債表的風險，並投資於銀行家和技術以進一步改善客戶體驗，這反映在我們的淨推薦值上，第四季度仍保持在 60 以上。如你所知，去年 12 月，我們宣布 Equals 與 Brookline Bancorp 合併，以打造卓越的東北特許經營店。

Turning to slide 5, you will see high-level overview of the combined bank. The transaction improves scale and meaningfully improves profitability as reflected in the estimated 40% and 23% accretion to Berkshire's 2026 consensus EPS estimate on GAAP and cash basis respectively.

翻到第 5 張投影片，您將看到合併後銀行的高層概述。此次交易擴大了規模，並顯著提高了盈利能力，這反映在伯克希爾 2026 年每股收益預計分別按 GAAP 和現金基礎增長 40% 和 23% 上。

Slide 6 shows the merger rationale. The merger combines Berkshire's stable, lower cost, more rural funding base with higher growth lending markets in Eastern Massachusetts and Rhode Island of Brookline. And with the expected 12.6% expense sales from the synergies of the two organizations, the combined efficiency ratio is expected to get below 50% in 2026. We announced this merger of Equals in the fourth quarter and expect the closing in the second half of 2025, subject to requisite regulatory and shareholder approvals and closing conditions.

投影片 6 展示了合併的理由。此次合併將把伯克希爾穩定、低成本、更偏遠的資金基礎與馬薩諸塞州東部和布魯克萊恩羅德島的高成長貸款市場結合。並且由於兩家公司的綜效，預計費用銷售額將成長 12.6%，預計到 2026 年，綜合效率率將降至 50% 以下。我們在第四季度宣布了 Equals 的合併，預計在 2025 年下半年完成，但須獲得必要的監管和股東批准以及滿足成交條件。

I want to thank all of my Berkshire Bank colleagues for their continued hard work and commitment to the bank and our clients, and look forward to their continued support and commitment through this transition. We will be communicating an integration plan to our employees over the next several weeks and we continue to maintain Berkshire Bank's standalone performance during transitions through the transaction closing in the second half of 2025.

我要感謝伯克希爾銀行的所有同事對銀行和客戶的持續努力和承諾，並期待他們在這次過渡期間繼續給予支持和承諾。我們將在接下來的幾週內向員工傳達整合計劃，並在過渡期間直至 2025 年下半年交易結束繼續保持伯克希爾銀行的獨立業績。

With that, I'll turn it over to Brett Brbovic to talk through our financials in more detail. Brett?

接下來，我將把主題交給 Brett Brbovic 更詳細地討論我們的財務狀況。布雷特？

Thank you, Nitin. Slide 7 shows an overview of 2024 metrics versus 2023. Our operating earnings were $94.9 million or $2.22 per share. On an annual basis, fees were up 21% and operating non-interest expense was down 3%. Provision expense for credit losses were $24 million down $8 million from 2023, all while increasing our allowance for credit losses to 122 basis points, up 5 basis points.

謝謝你，尼廷。投影片 7 顯示了 2024 年指標與 2023 年指標的概覽。我們的營業利潤為 9,490 萬美元，即每股 2.22 美元。以年計算，費用上漲了 21%，而營業非利息支出下降了 3%。信用損失準備金支出為 2,400 萬美元，比 2023 年減少了 800 萬美元，同時將我們的信用損失準備金提高至 122 個基點，上升了 5 個基點。

Turning to slide 8, we show fourth quarter metrics. Operating earnings were $26 million or $0.60 per share, up $0.02 linked quarter and $0.13 year-over-year. Net interest income of $86.9 million was down 1% linked quarter. Operating interest income was $23.2 million up 8% linked quarter. Operating expenses were $71 million down 2% linked quarter and down 6% year over year. Our fee, credit, and expense trends continue to be strong and compare favorably to peers. Net charge-offs were $3.3 million or 14 basis points of loans. Provision expense was $6 million and the reserve coverage ratio of 122 basis points was flat linked quarter. Our ACL to non-performing loans increased to 469%.

轉到投影片 8，我們展示了第四季的指標。營業利潤為 2,600 萬美元，即每股 0.60 美元，環比增長 0.02 美元，年增 0.13 美元。淨利息收入為 8,690 萬美元，季減 1%。營業利息收入為 2,320 萬美元，較上季成長 8%。營業費用為 7,100 萬美元，季減 2%，年減 6%。我們的費用、信貸和開支趨勢持續保持強勁，與同業相比具有優勢。淨沖銷金額為 330 萬美元，即貸款的 14 個基點。撥備支出為 600 萬美元，準備金覆蓋率為 122 個基點，與上一季持平。我們的 ACL 與不良貸款之比上升至 469%。

Slide 9 shows our average loan balances. Average loans were up $38 million linked quarter and up $281 million or 3% year-over-year. Average growth was lighter this quarter as we sold $47 million of our upstart consumer portfolio, had higher pay downs in the multifamily portfolio, and a couple of commercial closings that were pushed to the first quarter.

投影片 9 顯示了我們的平均貸款餘額。平均貸款額較上季增加 3,800 萬美元，年增 2.81 億美元，增幅 3%。本季的平均成長較低，因為我們出售了 4,700 萬美元的新興消費者投資組合，多戶型投資組合的首付更高，並且一些商業交易被推遲到第一季。

On an end-of-period basis, loans were up 2% linked quarter with growth primarily in C&I and commercial real estate. We've updated a page in the appendix, which shows the Upstart and Firestone runoff portfolios. The combined runoff portfolios are down $119 million or 71% year over year to $48,000,000 or 50 basis points of loans.

期末貸款較上季成長 2%，主要成長領域為工商業和商業房地產。我們更新了附錄中的一頁，其中展示了 Upstart 和 Firestone 的決選投資組合。合併後的貸款組合較上年同期下降 1.19 億美元，降幅 71%，至 4,800 萬美元，即 50 個基點的貸款。

Slide 10 shows average deposit balances. Average deposits increased $299 million or 3% linked quarter. End-of-period deposits were up linked quarter, primarily due to seasonally high payroll money market balances. Excluding payroll and brokered CD balances, end-of-period deposits grew 3% quarter over quarter. Year-over-year deposits were down 3% or $277 million, primarily from the New York branch sale, which closed in the third quarter. Adjusting for the $383 million of sold deposits from the branch sale, deposits were up 1% year-over-year. Average non-interest-bearing deposits as a percentage of total deposits remained at 24%, consistent with the prior two quarters.

投影片 10 顯示平均存款餘額。平均存款比上季增加了 2.99 億美元，增幅為 3%。期末存款與上季相比有所增加，主要由於季節性薪資貨幣市場餘額較高。不包括薪資和經紀 CD 餘額，期末存款較上季成長 3%。與去年同期相比，存款下降了 3%，即 2.77 億美元，主要由於第三季完成的紐約分行銷售。經調整分行銷售的 3.83 億美元存款後，存款年增 1%。平均無息存款佔總存款的比例維持在 24%，與前兩季一致。

Turning to slide 11, we show net interest income. Net interest income was down 1% linked quarter and down 2% year-over-year. Net interest margin was down 2 basis point linked quarter to 3.14% and December spot NIM was 3.18%. While we have headwinds of floating rate loans repricing lower short term, we also have several tailwinds. We have $1.5 billion of CDs or 59% of that book maturing in the next six months.

轉到第 11 張投影片，我們展示的是淨利息收入。淨利息收入較上季下降 1%，較去年同期下降 2%。淨利差較上季下降 2 個基點至 3.14%，12 月即期淨利差為 3.18%。雖然我們面臨浮動利率貸款短期內重新定價下調的阻力，但我們也面臨一些順風。我們有 15 億美元的 CD，或者說其中 59% 的 CD 將在未來六個月內到期。

We have $600 million of wholesale funding that matures over the first half of 2025. And further, we have $600 million of low yield received fixed swaps maturing over 2025 and 2026, with about half in 2025. Finally, we also have low yield fixed rate securities and loans that will mature and reprice at higher yields.

我們有 6 億美元的批發融資將於 2025 年上半年到期。此外，我們還有 6 億美元的低收益固定掉期債券將於 2025 年和 2026 年到期，其中約一半將於 2025 年到期。最後，我們還有低收益固定利率證券和貸款，它們將以更高的收益率到期並重新定價。

Slide 12 shows our operating non-interest income up $1.7 million or 8% linked quarter, and up $6.5 million or 39% year-over-year. Year-over-year comparisons reflect the change to PAM accounting for our tax credit investment business. The growth in fees quarter over quarter was primarily driven by higher gain on SBA loan sales. We also had higher BOLI revenues and seasonal revenue sharing fees this quarter, which came in about $1.5 million above normalized run rate. Deposit related fees declined linked quarter due to the New York branch sale. This was the fourth quarter in a row where we've seen solid growth in overall fees.

投影片 12 顯示我們的非利息營業收入較上季成長 170 萬美元或 8％，年增 650 萬美元或 39％。與去年同期的比較反映了我們稅收抵免投資業務的 PAM 會計變化。費用較上季成長主要得益於 SBA 貸款銷售收益的增加。本季我們的 BOLI 收入和季節性收入分成費用也更高，比正常運作率高出約 150 萬美元。由於紐約分行的出售，存款相關費用較上季下降。這是我們連續第四個季度看到總費用穩定成長。

Slide 13 shows expenses. Operating expenses were down 2% linked quarter to $71 million and down 6% year-over-year. Year-over-year expense declines were broad based. Linked quarter, a decline in compensation, and occupancy and equipment were offset by higher marketing and professional service expense.

幻燈片 13 顯示的是費用。營業費用較上季下降 2% 至 7,100 萬美元，較去年同期下降 6%。與去年同期相比，支出普遍下降。與上一季相比，薪資、入住率及設備費用的下降被行銷和專業服務費用的增加所抵消。

Slide 14 is a summary of asset quality metrics. Non-performing loans as a percent of loans were 26 basis points, which were flat linked quarter, and up 2 basis points year-over-year. As Nitin mentioned, total delinquencies and non-performing loans were 52 basis points of total loans, the lowest percentage in almost 20 years. Net charge-offs of $3.3 million were down $2.3 million linked quarter and down $1.1 million year over year.

投影片 14 是資產品質指標的摘要。不良貸款佔貸款的百分比為 26 個基點，與上一季持平，比去年同期上升 2 個基點。正如尼廷所說，總拖欠和不良貸款佔總貸款的 52 個基點，這是近 20 年來的最低百分比。淨沖銷金額為 330 萬美元，比上一季減少 230 萬美元，比去年同期減少 110 萬美元。

Slide 15 shows that our CRE book remains well diversified in terms of geography and collateral. Our CRE concentration ratio was approximately 294% and credit quality of the CRE portfolio remains solid with non-accrual loans at 22 basis points of period end loans.

投影片 15 顯示我們的 CRE 帳簿在地理和抵押品方面仍然保持良好的多樣化。我們的商業房地產集中度約為294%，商業房地產組合的信用品質依然穩健，非應計貸款佔期末貸款的22個基點。

Slide 16 shows details on our office portfolio. As noted last quarter, the weighted average loan-to-value ratios are about 60% and a large majority of the portfolio was in suburban and Class A space. We have very limited exposure to Boston's financial district and no exposure to high rise office buildings.

投影片 16 展示了我們辦公室組合的詳細資訊。正如上個季度所指出的，加權平均貸款價值比約為 60%，且大部分投資組合位於郊區和 A 級空間。我們對波士頓金融區的接觸非常有限，而且沒有接觸過高層辦公大樓。

Slide 17 shows details of our multifamily portfolio. The multifamily portfolio was $637 million or 6.8% of loans. The book is well diversified across our footprint with a weighted average loan-to-value of about 65%. While current credit quality metrics are strong, we recognize that economic uncertainties exist, and we are monitoring both new originations and existing portfolios carefully.

投影片 17 展示了我們的多戶型住宅投資組合的詳細資訊。多戶型房屋貸款組合價值 6.37 億美元，佔貸款總額的 6.8%。我們的資產負債表多元化，加權平均貸款價值比約為 65%。雖然目前信用品質指標強勁，但我們認識到存在經濟不確定性，並且我們正在密切監控新發起貸款和現有投資組合。

Turning to capital, we have strong capital levels. Tangible book value per share was $24.82 and increased 1% linked quarter and 9% year-over-year. Our CET1 ratio was up 110 basis points to 13% and our TCE ratio rose 30 basis points to 9.4%, this due to the equity offering and higher retained earnings.

談到資本，我們的資本水準強大。每股有形帳面價值為 24.82 美元，季增 1%，年增 9%。我們的 CET1 比率上升了 110 個基點，至 13%，我們的 TCE 比率上升了 30 個基點，至 9.4%，這得益於股票發行和更高的留存收益。

As you know, we raised $100 million in equity in December as part of our MOE announcement. The raise improved our standalone capital ratios to support the merger and we issued about 3.4 million 0 shares. We were encouraged by the demand for the offering and the narrow 3.9% discount.

如您所知，作為 MOE 公告的一部分，我們在 12 月籌集了 1 億美元股權。此次增資提高了我們的獨立資本比率以支持合併，我們發行了約 340 萬股。我們對此次發行的需求和 3.9% 的微弱折扣感到鼓舞。

Our top capital management priority remains supporting our organic loan growth. Year-to-date, we've repurchased $17.4 million 0 of stock at an average cost of $21.94. All of our repo in 2024 was done in the first half of the year and was completed below tangible book value per share. Currently, we do not anticipate repurchasing shares going forward until our merger closes.

我們的首要資本管理重點仍然是支持我們的有機貸款成長。年初至今，我們已回購了價值 1,740 萬美元的股票，平均成本為 21.94 美元。我們 2024 年的所有回購都是在上半年完成的，並以低於每股有形帳面價值的價格完成。目前，我們預計在合併完成前不會回購股票。

Given the pending MOE transaction in the second half of 2025, we will not be providing line-item income statement and balance sheet guidance for the upcoming year as we've done in the past. That said, we are encouraged by the momentum in our financial metrics and confirm comfort with the consensus net income cited in the December 16 merger presentation for 2025.

鑑於 2025 年下半年即將完成的 MOE 交易，我們將不會像過去那樣提供下一年度的專案損益表和資產負債表指引。儘管如此，我們對財務指標的勢頭感到鼓舞，並對 12 月 16 日合併報告中提到的 2025 年一致淨收入感到滿意。

And with that, I'll turn it back to Nitin for further comments. Nitin?

說完這些，我會把話題轉回給尼廷，請他作進一步的評論。尼廷？

Thank you, Brett. In summary, we had a strong fourth quarter and a solid year in a challenging macroeconomic environment. Fee revenues, expenses, and credit came in ahead of our expectations from a year ago. While net interest income was down, the yield curve was steepening and this will serve as a meaningful tailwind for our NII and operating leverage in the coming year.

謝謝你，布雷特。總而言之，在充滿挑戰的宏觀經濟環境下，我們第四季表現強勁，今年也取得了穩健的成績。費用收入、支出和信貸均超出了我們一年前的預期。雖然淨利息收入下降，但殖利率曲線趨陡，這將對我們明年的淨利息收入和營運槓桿起到有意義的推動作用。

We are entering 2025 with a strong momentum across key business metrics. I'm truly proud of what our team has accomplished and how far we've come since I joined as CEO four years ago. We've streamlined our operations by exiting non-core businesses and processes, optimized our footprint through consolidation and pruning of our branch network along with rationalization of legacy corporate real estate across the footprint. And we've gotten our loan growth and more recently our deposit growth engines running well. We've invested in technology and digitized our offerings to improve the client experience and relationship deepening.

我們即將邁入 2025 年，各項關鍵業務指標均呈現強勁發展動能。我為我們團隊自四年前我擔任執行長以來所取得的成就和所取得的進步感到由衷的自豪。我們透過退出非核心業務和流程簡化了運營，透過整合和精簡分支機構網路以及合理化整個業務範圍內的遺留公司房地產優化了我們的覆蓋範圍。我們的貸款成長和最近的存款成長引擎運作良好。我們投資技術並將我們的服務數位化，以改善客戶體驗並深化關係。

I'm excited about the potential for the combined Berkshire and Brookline franchises. The combined entity will provide more growth opportunities for our employees, continued commitment to our communities, enhanced products and services for our customers, and significantly higher profitability and returns for our shareholders.

我對伯克希爾和布魯克萊恩特許經營權合併後的潛力感到非常興奮。合併後的公司將為我們的員工提供更多的成長機會，繼續致力於為社區服務，為我們的客戶提供更優質的產品和服務，並為我們的股東提供更高的獲利能力和回報。

With that, I'll turn it over to the operator for questions. Operator?

說完這些，我將把問題交給接線員。操作員？

(Operator Instructions) David Bishop, Hovde Group.

(操作員指示) David Bishop，Hovde 集團。

Hey. Nitin and Brett and company, just curious, a really good quarter here on the loan growth side. Just curious, I don't know if you can ring fess, it maybe how much of that, what percent contribution was maybe from some of the new hires that you guys have been adding over the past year or so?

嘿。Nitin 和 Brett 以及公司，只是好奇，本季的貸款成長確實很好。只是好奇，我不知道您是否可以坦白地說，其中的貢獻可能有多少，有多少百分比是來自你們在過去一年左右新增的一些員工？

Yes. I think at a high level, to begin with, the bulk of the growth came in from our commercial book and within that the good news part was also it was pretty well balanced. So, it came on a broad based. C&I grew actually faster than our CRE book. A lot of this production was again from both existing and new bankers. So, I wouldn't give a specific mix for that, but I think it's all cylinders firing at the same time.

是的。我認為，首先，從高層次來看，大部分成長來自於我們的商業帳簿，而好消息是，它的平衡性也相當好。因此，它具有廣泛的基礎。C&I 的成長速度實際上比我們的 CRE 帳面速度更快。許多此類成果又來自現有銀行家和新銀行家。所以，我不會給出特定的組合，但我認為這是所有氣缸同時點火。

Got it. And then just curious, as you've added these senior bankers. Has the average loan size and relationship they're booking moved appreciably since the beginning of the year?

知道了。我很好奇，因為你增加了這些高級銀行家。自今年年初以來，他們登記的平均貸款規模和關係是否有明顯變化？

No. It's been relatively steady. Our credit box and holding limits haven't changed, so it's pretty steady through the year.

不。目前情況相對穩定。我們的信用額度和持有限額沒有改變，因此全年都相當穩定。

Got it. And then I know the end of the quarter, as you noted can be impacted by payroll deposits. Do you have like a dollar amount how much they were sort of elevated relative to norms?

知道了。然後我知道，正如你所說，季度末可能會受到薪資存款的影響。您能知道它們相對於標準上漲了多少美元嗎？

Yes, I think, on average, they were probably up about $500 million from they usually are right around $1 billion on average, and I think that the year end, we were up about $0.5 billion.

是的，我認為，平均而言，它們可能比通常的平均 10 億美元增加了約 5 億美元，而且我認為，到年底，我們增加了約 5 億美元。

And Dave, that has been consistent. If you look at all three years of 2024, 2023, 2022, payroll ends up at about $1.5 billion. So that's about $500 million as Brett said compared to the normal months in the quarter.

戴夫，這一點一直保持一致。如果看一下 2024 年、2023 年、2022 年這三年，薪資總額最終將達到約 15 億美元。因此，正如布雷特所說，與本季的正常月份相比，這約為 5 億美元。

Got it. And it looks like obviously with the Fed being aggressive here in the fourth quarter and the December margin at 3.18% sounds like there might be some tailwinds not only on the loan side, the borrowing side, but also deposits. Just curious if you still see some progression downward on the funding cost side on the interest-bearing deposits. Thanks.

知道了。顯然，由於聯準會在第四季度採取了積極的升息措施，12 月的升息幅度達到 3.18%，這聽起來不僅對貸款方、借款方，而且對存款都可能帶來一些利好。只是好奇您是否仍看到計息存款的融資成本方面有所下降。謝謝。

We definitely do. We are expecting some modest expansion in the NIM as we move forward into Q1, primarily through decreases on the funding side.

我們當然會這麼做。我們預計，隨著第一季的到來，淨利息收益率 (NIM) 將略有擴大，主要是透過融資方面的減少。

Billy Young, RBC.

比利楊（Billy Young），加拿大皇家銀行（RBC）。

Just to follow-up on David's question just on the deposits. Understanding the seasonal lift from payrolls, the core growth still looked pretty good. It seems like you're getting some traction on kind of your deposit gathering efforts. So, can you just maybe elaborate on kind of what you think the deposit opportunity this year is? You kind of mentioned some of the wholesale fundings maturing later this year. So, do you think you'll be able to kind of generate enough core deposit growth to kind of offset some of that? It just feels like you're getting a lot of momentum here on the deposit side.

只是想跟進戴維關於存款的問題。在了解薪資的季節性成長後，核心成長看起來仍然相當不錯。看起來你們在存款收集工作上取得了一些進展。那麼，您能否詳細說明一下您認為今年的存款機會是什麼？您提到了一些將於今年稍後到期的批發融資。那麼，您認為您能夠產生足夠的核心存款成長來抵消其中的一些影響嗎？感覺你們在存款方面獲得了很大的發展勢頭。

Thanks. Yes, Billy, I'll just give you a macro view of the growth itself. So, the average growth, right, so that normalizes for the spikes at the end of the quarter. The average growth was 3% and then you could look at it two different ways, product view and the channel view. Products, pretty much across all products, there was growth, including DDAs growing by about 2% and between DDA, savings, money market, CDs, the growth was about 2% to 5%, so that kind of blended to that 3%. So, broad based product growth.

謝謝。是的，比利，我只是給你一個關於成長本身的宏觀看法。所以，平均成長率是對的，這使得季度末的峰值正常化。平均成長率為3%，然後你可以從兩個不同的角度來看待它，即產品視角和通路視角。產品，幾乎所有產品都實現了成長，其中 DDA 成長了約 2%，而 DDA、儲蓄、貨幣市場和 CD 之間的成長率約為 2% 至 5%，因此這些成長率與 3% 相吻合。因此，產品成長基礎廣泛。

And in terms of the channels, the biggest growth outside of payroll came from commercial and private bank, retail and also the new digital channel that was launched that roughly contributed over 15% of retail deposit generation in the quarter. So, very broad-based kind of growth and we are hoping that, that momentum continues.

就通路而言，薪資以外的最大成長來自商業和私人銀行、零售以及新推出的數位管道，該管道約貢獻了本季度超過 15% 的零售存款。因此，這是一種非常廣泛的成長，我們希望這種勢頭能夠持續下去。

Great. Thank you for that. And maybe just kind of going back to the other side of the balance sheet, just on kind of looking at loan growth drivers for the year. You mentioned a couple of modest headwinds this quarter, but underlying growth also looked pretty solid there. It seems like things are picking up on the commercial side for 2025.

偉大的。謝謝你。或許只是回到資產負債表的另一邊，看看今年的貸款成長動力。您提到本季遇到了一些輕微的阻力，但潛在的成長看起來也相當穩健。看起來 2025 年商業方面的情況將會好轉。

So, can you just talk a little bit about general commentary on just kind of underlying what you're seeing in terms of underlying activity, and maybe a little bit on customer sentiment and kind of how do you balance the building strength in C&I against maybe some of the need to kind of control commercial real estate concentrations ahead of the book line deal?

那麼，您能否就您所看到的潛在活動以及客戶情緒發表一些一般性評論，以及如何在 C&I 的建設實力與在賬面交易之前控製商業房地產集中度的需求之間取得平衡？

Yes, I'll start off and Brett could provide more color on the forward look. So, I think the growth again broad based in the lending portfolio. C&I actually grew at a faster pace than 3%. We did actually offload the part of the consumer portfolio in the quarter. So, I think that kind of brought the growth rates down. So normalized, it is about 1% or so or 2%, closer to 2% growth in the quarter on an end of period basis.

是的，我先開始，布雷特可以提供更多關於未來展望的內容。因此，我認為貸款組合再次呈現廣泛成長。C&I 的成長速度實際上超過了 3%。我們確實在本季卸載了部分消費者產品組合。所以，我認為這會降低成長率。因此，以正常化計算，季度末的成長率約為 1% 左右或 2%，接近 2%。

So, we do expect to see the momentum going. The pipeline was actually lower quarter over quarter, but year-over-year it was about 20% higher. So, it feels like on a seasonal basis, there is momentum. Our teams are being very judicious. Our CRE team that has done an exceptional job managing, the serving our clients while managing the balance sheet judiciously. We continue to keep it at or below that 300% of risk-based capital, and I think that will remain to be our kind of the operating guideline. And C&I, we're seeing some real good momentum between C&I and ABL teams. So, I think that momentum should continue and Brett could give more color around how we expect that to expand the margins going forward.

因此，我們確實期待看到這種勢頭繼續下去。事實上，與上一季相比，管道數量有所下降，但與去年同期相比，管道數量卻增加了約 20%。因此，感覺從季節角度來看，存在著一種勢頭。我們的團隊非常謹慎。我們的 CRE 團隊在管理、服務客戶以及審慎管理資產負債表方面做得非常出色。我們將繼續將其保持在 300% 或以下的風險資本水平，我認為這將繼續成為我們的營運指南。在 C&I 中，我們看到 C&I 和 ABL 團隊之間呈現出良好的勢頭。所以，我認為這種勢頭應該會持續下去，而布雷特可以進一步說明我們預期未來利潤率將如何擴大。

Yes. And I think we do see that happening in the first quarter. I think we expect some decent balance sheet growth heading into Q1 2025, allowing our NIM to expand in the first quarter.

是的。我認為我們確實在第一季看到了這種情況的發生。我認為，我們預計 2025 年第一季的資產負債表將出現不錯的成長，使我們的 NIM 在第一季擴大。

Great. Thank you. And just one follow-up question. Any commentary on just kind of near-term expense expectations?

偉大的。謝謝。還有一個後續問題。對於近期費用預期有什麼評論嗎？

Yes, I think we've shown pretty good momentum on the expense side over the last few quarters. We expect to see that momentum continue into 2025 with no real significant changes in that as we move forward.

是的，我認為過去幾季我們在費用方面表現出了相當良好的勢頭。我們預計這種勢頭將持續到 2025 年，並​​且不會發生重大變化。

Chris O'Connell, KBW.

克里斯·奧康奈爾，KBW。

So, just wanted to start off on credit. Obviously, this quarter, after all the recent actions came out really good and kind of below the recent trends. Given the disposal of the majority of the upstart portfolio and just kind of the recent progress here. Do you guys think the normalized kind of net charge-off rate going forward is down a bit than the past few quarters?

因此，我只是想從信用開始。顯然，本季度，經過最近的所有行動，結果確實很好，並且略低於最近的趨勢。考慮到大部分新興投資組合的處置以及最近的進展。你們是否認為未來標準化的淨沖銷率會比過去幾季有所下降？

I think the normalized charge offs for us, we believe, should be in the range of 20 basis points. So, we've had couple quarters better than that, but we believe it normalizes at around 20 basis points range up, Chris.

我認為我們的正常化沖銷額應該在 20 個基點的範圍內。因此，我們有幾個季度的表現比這要好，但我們相信它會在 20 個基點左右的範圍內正常化，克里斯。

Okay, great. And then I know the office portfolio has been performing very strong and isn't too big for you guys, but it looks like about 22% and another 19% are maturing in 2025, '26, and I think the entire portfolio is about 4.7% criticized. Can you just give us a sense of how much of that criticized portion is within the ‘22 or the ‘25 and '26 maturities?

好的，太好了。然後我知道辦公室投資組合表現非常強勁，對你們來說不是太大，但看起來大約有 22%，另外 19% 將在 2025 年、26 年到期，我認為整個投資組合中約有 4.7% 受到批評。您能否告訴我們，受到批評的部分中有多少是屬於 22 年、25 年和 26 年到期的？

Greg, you want to give some color there?

格雷格，你想為那裡增添一些色彩嗎？

Yes. Actually, none at all in 2025.

是的。事實上，到 2025 年就不會有這種情況了。

Okay, great. And nothing on 2026 either?

好的，太好了。2026 年也沒有消息嗎？

There is a small credit in 2026, $3 million.

2026 年有一筆小額貸款，300 萬美元。

Okay, thanks. And just you guys mentioned the digital deposit efforts. I was wondering what that overall balance is and then, what the cost of that is just compared to the overall deposit portfolio?

好的，謝謝。剛才你們提到了數位存款工作。我想知道整體餘額是多少，然後，與整體存款組合相比，其成本是多少？

Yes. Well, I'll ask Sean to give some color there.

是的。好吧，我會請肖恩來解釋一下。

Sure. We're very focused on pricing that portfolio similar to the offerings we have in both our retail and commercial bank. We're pleased that the average deposit size is also mirroring our retail account opening, and the average DDA size is also much better than national trends. So, the program is relatively new. We are up over $60 million in digital deposits with some good, and Nitin mentioned the good growth rates this quarter. So, we're pleased that we've got good momentum, and we hope that pipeline continues into next year.

當然。我們非常注重對該投資組合的定價，使其類似於我們的零售銀行和商業銀行所提供的產品。我們很高興看到，平均存款規模也反映了我們的零售帳戶開戶規模，平均 DDA 規模也遠遠優於全國趨勢。所以，該計劃相對較新。我們的數位存款增加了 6000 多萬美元，其中一些是好的，Nitin 提到了本季的良好成長率。因此，我們很高興看到了良好的發展勢頭，並希望這種勢頭能夠持續到明年。

And Chris, just to maybe add a little more color to this, I think some part of this program that is launched by the team also kind of leverages the investments that we made in our technology stack, and I think that allows us to do this more effectively. So historically, you've seen most of the banks have struggled to keep right amount of balances in digital deposits, have higher attrition, have higher fraud. And I think we addressed that. We took all those learnings, leveraged our tech stack and have built a pretty robust program. Like Sean said, we feel pretty good about the momentum we're seeing across those metrics.

克里斯，也許只是為了補充一點，我認為團隊啟動的該計劃的某些部分也利用了我們在技術堆疊中所做的投資，我認為這使我們能夠更有效地做到這一點。從歷史上看，你會看到大多數銀行都在努力保持數位存款的正確餘額，從而導致更高的流失率和更高的詐欺率。我想我們已經解決了這個問題。我們吸收了所有這些經驗，利用我們的技術堆疊，建立了一個非常強大的程式。正如肖恩所說，我們對這些指標所看到的勢頭感到非常滿意。

Okay. Thanks, Nitin. And then just wanted to follow-up. I know there's no full-year guidance, but just getting a little bit more granular into next quarter given branch shell and kind of the various moves over the past couple of quarters. I mean, as far as just going into Q1, how you guys are thinking about the expense run rate?

好的。謝謝，尼廷。然後只是想跟進。我知道沒有全年的指導，但考慮到分支機構的情況和過去幾季的各種變動，我們可以對下個季度的情況進行更詳細的了解。我的意思是，就第一季而言，你們是如何考慮費用運行率的？

Yes. I think we've had a lot of positive momentum with expenses over our recent history. I think we were going to continue that as we move forward. That's obviously a point of focus for us. We meet regularly to make sure that we're spending every dollar as effectively and efficiently as possible. So, I would expect to see that momentum continue.

是的。我認為，我們近期在支出方面取得了很大的積極進展。我認為我們將繼續這樣做。這顯然是我們關注的重點。我們定期開會以確保盡可能有效和有效率地花費每一分錢。因此，我希望看到這種勢頭持續下去。

Laurie Hunsicker, Seaport Research Partners.

勞瑞‧亨西克（Laurie Hunsicker），海港研究夥伴。

Maybe just starting over, and your other income, the $4.9 million. How much of that was BOLI death benefit there?

也許只是重新開始，還有你的其他收入，490 萬美元。其中 BOLI 死亡撫卹金有多少？

I think BOLI was about almost $1 million higher than our normal run rate, quarter over quarter.

我認為，與上一季相比，BOLI 的季度環比增長了約 100 萬美元。

Okay. And was there anything else non-recurring in that?

好的。其中還有什麼非經常性的事情嗎？

We did have some seasonally high revenue sharing fees, but that is that's a seasonal thing that comes in usually at the end of fourth quarter every year. Another thing, quarter over quarter, I would say those are kind of the two pieces that drove the increase, but I wouldn't say anything, BOLI was probably the most significant component of that.

我們確實有一些季節性的高收入分成費用，但這是季節性的事情，通常在每年第四季末出現。另一件事，與上一季相比，我想說這兩個因素是推動成長的因素，但我不會說什麼，BOLI 可能是其中最重要的組成部分。

Okay, great. Thanks. And then, just going back to sort of normalized charge-offs and also, Upstart and Firestone, which I'm very happy you guys continue to provide the detail. That's helpful. Can you just help us think about, though, these two books have combined been half, three quarters, and some quarters even more of your charge offs, right?

好的，太好了。謝謝。然後，回到標準化的沖銷以及 Upstart 和 Firestone，我很高興你們繼續提供詳細資訊。這很有幫助。您能幫我們想一想嗎，這兩本書加起來佔了您註銷金額的一半、四分之三，甚至更多的四分之一，對嗎？

So, after that, your charge-offs have been actually tracking single digits. So, I guess question on normalized charge off, is that a stripping that out number or that's including that in when we're looking at 20 basis points? And then ahead of ahead of the Brookline MOE, again the Upstart and the Firestone bleed, and it was great to see the Upstart sale on October 16. But the -- can you just refresh us, what are the reserves on those two books, and why not just write them off, sell them for whatever gets them done before you close so that headache is completely in the rearview mirror? How are you thinking about that?

因此，在此之後，您的沖銷金額實際上一直都是個位數。所以，我想關於標準化沖銷的問題是，這是一個去掉的數字，還是當我們考慮 20 個基點時將其包括在內？然後，在布魯克林 MOE 之前，Upstart 和 Firestone 再次大放異彩，很高興看到 10 月 16 日 Upstart 的銷售。但是——您能否讓我們重新認識一下，這兩本書的儲備量是多少，為什麼不把它們註銷，在關閉之前以任何能完成的價格賣掉，這樣麻煩就完全消失了？您覺得這個怎麼樣？

Greg, you want to start it off and I'll jump in as well?

格雷格，你想先開始，然後我也加入嗎？

Sure. Laurie, those are embedded in in that expectation of normalized charge-offs. Firestone has been really performing better than expected. So, we don't really see any issues in the Firestone book and we actively are looking at possibly selling the remaining book of the upstart as well. Our reserves for the upstart are probably in excess of 50% of the balances that are outstanding now.

當然。勞裡，這些都是在對正常化沖銷的預期中體現出來的。凡士通的表現確實好於預期。因此，我們確實沒有發現 Firestone 書籍有任何問題，而且我們正在積極考慮出售這本新貴書籍的剩餘部分。我們為這家新興企業準備的儲備金可能超過目前未償還餘額的50%。

Okay. Great. So, basically, if we think about normalized charge-off, so that number. It's still single digits. It's not 20 basis points. Are you guys there?

好的。偉大的。所以，基本上，如果我們考慮標準化沖銷，那麼這個數字。目前仍是一位數。這不是20個基點。你們在那裡嗎？

Laurie, I think, what no, yes, we're there. Though, I think 20 basis points is what we believe to be the normalized run rate. I think our 10-year average has been about 35, 37 basis points. We believe embedded quality is stronger. So, I think we don't expect continue to see 7 and 14 basis points type of charge-offs. So, I think the normalized run rate could be 20 basis points.

勞裡，我想，不，是的，我們到了。不過，我認為 20 個基點是我們認為的正常運作率。我認為我們的 10 年平均值約為 35 至 37 個基點。我們相信嵌入式的品質更強。因此，我認為我們預計不會繼續看到 7 和 14 個基點類型的沖銷。因此，我認為標準化運行率可能是 20 個基點。

Okay. Notwithstanding the fact, Upstart has been like three quarters of your charge-offs quarter after quarter after quarter?

好的。儘管如此，Upstart 已經成為了你們一個季度又一個季度的沖銷額的四分之三，對嗎？

Correct.

正確的。

Okay. And then just last question, thinking about the closing, and I don't know if this is a Paul and Karl question, but we are seeing much, much faster approvals rolling through the latest, the third largest merger announced in 2024, the [AUVSASR] deal, seven weeks after filing their application, they get set approval even ahead of the state approvals, right? So, they were supposed to close in the third quarter of ‘25. Now they're closing April 1, 2025. Can you help us think a little bit about the timing? Are we going to see a faster closing here? How should we be thinking about that?

好的。然後是最後一個問題，考慮一下收尾工作，我不知道這是否是保羅和卡爾的問題，但我們看到最新的審批速度要快得多，2024 年宣布的第三大合併案，[AUVSASR] 交易，在提交申請七週後，他們甚至在獲得州政府批准之前就獲得了批准，對嗎？因此，他們應該在 2025 年第三季完成交易。現在他們將於 2025 年 4 月 1 日關閉。您能幫我們稍微考慮一下時間安排嗎？我們會看到這裡更快的關閉嗎？我們該如何思考這個問題？

Yes, I think and Laurie, you have a good lens of this and we look at the same numbers. And yes, I believe the general feeling is that the regulatory approvals might be faster, especially in the new administration compared to the previous one. It's just impossible to predict how much that is. I think both our, both of us combined parties estimated that to be the end of third quarter, but it very well could be sooner, but we just can't forecast that.

是的，我認為，勞裡，你對此有很好的看法，而且我們看到的是相同的數字。是的，我相信大家的普遍感覺是監管部門的審批可能會更快，尤其是新政府相對於上一屆政府而言。根本無法預測這個數字到底有多少。我認為我們雙方都估計這將是第三季末，但也可能更早，但我們無法預測。

Mark Fitzgibbon, Piper Sandler.

馬克·菲茨吉本，派珀·桑德勒。

Good. Quick questions. Could we see any other balance sheet actions that you guys might do to prepare for the MOE?

好的。快速提問。我們能否看到你們為準備 MOE 可能採取的其他資產負債表行動？

No, there is nothing on the radar.

不，雷達上什麼都沒有。

Okay. And secondly, just looking for the next few quarters, I saw the tax rate was elevated in 4Q. Would you kind of be able to give us an idea on how we should be thinking about it for 1Q, 2Q and 3Q?

好的。其次，展望未來幾個季度，我發現第四季的稅率有所上升。您能否為我們提供關於我們應該如何考慮第一季、第二季和第三季的建議？

Yes, sure. Taxes were a little bit elevated obviously this quarter because of some non-deductible merger expenses that drove up the rate here in Q4. I think that's what pretty much drove it to the 26%. I believe we're still expecting to be around the 22%, 23% tax rate, for 2025 and going forward.

是的，當然。本季的稅率顯然略有上升，因為一些不可扣除的合併費用推高了第四季的稅率。我認為這就是其達到 26% 的主要原因。我相信我們仍預計2025年及以後的稅率將在22%、23%左右。

David Bishop, Hovde Group.

大衛畢曉普（David Bishop），霍夫德集團（Hovde Group）。

Yes, just a couple of follow ups, either for Nitin or Greg. You alluded to the change in administration here, and obviously there's been a lot of table rattling, in terms of downsides of the federal government, especially as it pertains to the real estate. Any exposure to the federal government or agencies that could be affected by the potential GSA downsizing within your footprint?

是的，只需跟進幾個問題，無論是針對 Nitin 還是 Greg。您提到了這裡的政府變動，顯然，人們對聯邦政府的弊端，尤其是在房地產方面，提出了許多不滿。您所在地區的 GSA 規模可能縮減，而聯邦政府或機構是否會受到影響？

Greg?

格雷格？

No, that's a good question. I mean, we do have leases with government agencies. The positive part of the leases is that they're very long term. The termination clauses in a lot of the cases will equal the amount of payment. So, very steep termination clause. So, we have that embedded protection built into the loans associated with any government leases.

不，這是個好問題。我的意思是，我們確實與政府機構簽訂了租約。租約的優點在於租期非常長。很多情況下，終止條款的金額與支付金額相等。所以，終止條款非常嚴格。因此，我們在與任何政府租賃相關的貸款中都內建了內在保護。

Got it. And then sticking on sort of the loan question, just curious, new originations this quarter versus last and if they've moved appreciably either up or down post quarter?

知道了。然後繼續討論貸款問題，只是好奇，本季與上一季相比，新發放貸款是否在季度後明顯上升或下降？

So new originations were about let me just give you one second, the exact numbers there. Yes, they were modestly higher in terms of commitments on the commercial side and as well as consumer side. So, modestly higher in the fourth quarter compared to third quarter.

因此，讓我給你一秒鐘的時間，告訴你具體的新發起數字。是的，他們在商業方面和消費者方面的承諾略高一些。因此，第四季與第三季相比略有成長。

They moved much, I know it's early in the first quarter, but has there been much movement post quarter?

他們動作很大，我知道現在還處於第一季初期，但季度後還有什麼動作嗎？

No. But I think as Brett mentioned in the script, there were a couple of deals on the commercial side that pushed into the first quarter, so there will be a little bit of a head start there. But the pipeline, again, year over year was up 20%. So, I think that's normal. We think it should be similar kind of a trajectory as we saw in the first quarter of last year.

不。但我認為，正如布雷特在劇本中提到的那樣，商業方面有幾筆交易已經推進到了第一季度，因此在那裡會稍微領先一點。但管道數量比去年又增加了 20%。所以，我認為這是正常的。我們認為它的軌跡應該與去年第一季的軌跡類似。

This concludes the question-and-answer session. I'll turn the call to Nitin Mhatre for closing remarks.

問答環節到此結束。接下來我將請 Nitin Mhatre 作結束語。

Thank you all for joining us today on our call and your continued interest in Berkshire. Have a great day and be well.

感謝大家今天的電話會議以及對伯克希爾的持續關注。祝您有個愉快的一天並身體健康。

Thank you. This concludes today's conference call. Thank you for joining. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。