Bridgewater Bancshares Inc (BWB) 2023 Q2 法說會逐字稿

Good morning and welcome to the Bridgewater Bancshares 2023 second quarter earnings call. My name is Chuck, and I'll be your conference operator today. (Operator instructions) Please note that today's call is being recorded. And at this time, I would like to introduce Justin Horstman, Director of Investor Relations, to begin the conference call. Please go ahead, sir.

早安，歡迎參加 Bridgewater Bancshares 2023 年第二季財報電話會議。我叫查克，今天我將擔任你們的會議操作員。 （接線生說明）請注意，今天的通話正在錄音。現在，我想介紹投資者關係總監賈斯汀·霍斯特曼（Justin Horstman）開始電話會議。請繼續，先生。

Thank you, Chuck, and good morning, everyone. Joining me on today's call are Jerry Baack, Chairman, President, and Chief Executive Officer; Joe Chybowski, Chief Financial Officer; Jeff Shellberg, Chief Credit Officer; and Nick Place, Chief Lending Officer. In just a few moments, we will provide an overview of our 2023 second quarter financial results. We will be referencing a slide presentation that is available on the Investor Relations section of Bridgewater's website, investors.bridgewaterbankmn.com. Following our opening remarks, we will open it up for questions.

謝謝你，查克，大家早安。與我一起參加今天電話會議的還有董事長、總裁兼執行長 Jerry Baack；喬‧切博斯基 (Joe Chybowski)，財務長； Jeff Shellberg，首席信貸官；和首席貸款官 Nick Place。稍後，我們將概述 2023 年第二季財務業績。我們將參考 Bridgewater 網站 Investors 關係部分的幻燈片演示文稿，investors.bridgewaterbankmn.com。在我們的開場白之後，我們將開放提問。

During today's presentation, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We caution that such statements are predictions and that actual results may differ materially. Please see the forward-looking statement disclosure in our 2023 second quarter earnings release for more information about risks and uncertainties which may affect us. The information we will provide today is as of June 30, 2023. And we undertake no duty to update the information.

在今天的演示中，我們可能會對未來事件或公司未來財務表現做出預測或其他前瞻性陳述。我們提醒您，此類陳述只是預測，實際結果可能會有重大差異。請參閱我們 2023 年第二季財報發布中揭露的前瞻性聲明，以了解更多有關可能影響我們的風險和不確定性的資訊。我們今天提供的資訊截至2023年6月30日。我們不承擔更新資訊的義務。

We may also disclose non-GAAP financial measures during this call. We believe certain non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the company's operating performance and trends and to facilitate comparisons with the performance of our peers. We caution that these disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP. Please see our 2023 second quarter earnings release for reconciliations of non-GAAP disclosures to the comparable GAAP measures. I would now like to turn the call over to Bridgewater's Chairman, President, and CEO, Jerry Baack.

我們也可能在本次電話會議期間揭露非公認會計準則財務指標。我們相信，除了相關的公認會計準則衡量標準之外，某些非公認會計準則財務衡量標準還可以為投資者提供有意義的信息，幫助他們了解公司的經營業績和趨勢，並便於與同行的業績進行比較。我們提醒您，這些揭露不應被視為替代根據 GAAP 確定的經營績效。請參閱我們的 2023 年第二季財報發布，以了解非 GAAP 揭露資訊與可比較 GAAP 衡量指標的對帳情況。我現在想將電話轉給橋水基金董事長、總裁兼執行長 Jerry Baack。

Thank you, Justin, and thank you, everyone, for joining us today. I'll start with a quick overview of the second quarter, which is highlighted by some encouraging trends as we continue to work through this challenging banking environment. As we've been indicating the pace of balance sheet growth continues to slow throughout the year, but we were pleased with the improvement of the balance sheet composition. Not only did we see a strong rebound in total deposit growth, which increased nearly 20% on annualized basis from the first quarter, our core deposit balances increased 7.4%, outpacing loan growth of 5.6% essentially aligning growth rates on both sides of the balance sheet.

謝謝賈斯汀，也謝謝大家今天加入我們。我將首先快速概述第二季度，在我們繼續應對充滿挑戰的銀行環境的過程中，一些令人鼓舞的趨勢凸顯了第二季度的情況。正如我們一直指出的那樣，資產負債表的成長速度全年持續放緩，但我們對資產負債表組成的改善感到滿意。我們不僅看到總存款成長強勁反彈（按年化計算較第一季成長近 20%），我們的核心存款餘額成長 7.4%，超過貸款成長 5.6%，基本上使餘額雙方的成長率保持一致床單。

Net interest margin compression continued during the quarter as expected, as funding costs continue to rise across the industry. On a positive note, we did see the pace of margin compression slow considerably on a month over month basis throughout the quarter. Joe will talk more about this in a few minutes.

由於整個產業的融資成本持續上升，本季淨利差持續壓縮，符合預期。從正面的方面來看，我們確實看到整個季度利潤率壓縮的速度逐月顯著放緩。幾分鐘後喬將詳細討論這一點。

Our expenses remained very well controlled for the second consecutive quarter. This has been intentional and shows that we have the ability to manage expenses as revenue growth slows. Asset quality remained pristine with no net charge-offs, very low levels of nonperforming assets and stable levels of watch and substandard loans. We continue to be very proactive and diligent on this front, but remain pleased with the performance and quality of our loan portfolio. At the end of the day, this all translated to another quarter of tangible book value growth, which is now up over 10% year over year. In fact, we have grown tangible book value every quarter going back to 2016.

我們的開支連續第二季保持得很好。這是有意為之，並表明我們有能力在收入成長放緩時管理費用。資產品質維持良好狀態，無淨核銷，不良資產水準極低，觀察貸款和次級貸款水準穩定。我們在這方面繼續非常積極和勤奮，但對我們貸款組合的表現和品質仍然感到滿意。最終，這一切都轉化為有形帳面價值又一個季度的成長，目前年增超過 10%。事實上，自 2016 年以來，我們每季的有形帳面價值都在成長。

Before we provide a more detailed look at our results, I want to take a minute to share some thoughts on the business more broadly. We have always believed that staying in front of our clients is priority number one, and we have remain vigilant in this commitment. We have seasoned clients or potential client opportunities. Our lending and treasury teams are prioritizing in-person visits and continue to see record attendance at our network in advance.

在我們更詳細地了解我們的結果之前，我想花一點時間更廣泛地分享一些關於業務的想法。我們始終相信，站在客戶面前是第一要務，我們對這項承諾始終保持警惕。我們擁有經驗豐富的客戶或潛在的客戶機會。我們的貸款和財務團隊優先考慮親自拜訪，並繼續看到提前到達我們網路的創紀錄的人數。

To further expand our reach, we are actively developing a foothold with women decision makers through unconventional events and social channels. These efforts are paying off as we onboard new clients that appreciate our responsive and knowledgeable service model. We have also taken steps to refine our branch-like footprint. Just last week, we relocated our downtown Minneapolis branch to a more premium Skyway location with more space to serve our clients. Minneapolis is an important market, and we remain committed to serving the downtown community.

為了進一步擴大我們的影響力，我們正在透過非常規活動和社交管道積極與女性決策者建立聯繫。隨著我們的新客戶欣賞我們響應迅速且知識淵博的服務模式，這些努力正在得到回報。我們也採取措施完善我們的分支機構足跡。就在上週，我們將明尼阿波利斯市中心的分行遷至更優質的 Skyway 位置，擁有更多空間來為客戶提供服務。明尼阿波利斯是一個重要的市場，我們仍然致力於為市中心社區提供服務。

In addition, as we mentioned last quarter, we recently purchased a parcel of land in a higher growth East metro area for a future De Novo branch, which will help us fill out our footprint down the road. Despite the overall uncertainty in the market today, one thing is for certain and that is the confidence I have in our team. We know that Bridgewater's talent pool runs deep.

此外，正如我們在上季度所提到的，我們最近在成長更快的東部都市區購買了一塊土地，用於未來的 De Novo 分支機構，這將幫助我們填補我們未來的足跡。儘管當今市場總體存在不確定性，但有一件事是肯定的，那就是我對我們團隊的信心。我們知道橋水基金的人才儲備很深厚。

As a top workplace seven years running, we know that engagement, job satisfaction, and productivity rank incredibly high. We think about the employee experience the same way we think about the client experience, ensuring that Bridgewater is a place people want to develop, grow, build community, and ultimately thrive is our goal. If our people are happy, our clients noticed a difference. I firmly believe we have the best bankers in the Twin Cities, and I'm grateful for their commitment to driving the success.

作為連續七年排名最高的工作場所，我們知道敬業度、工作滿意度和生產力排名非常高。我們像對待客戶體驗一樣思考員工體驗，確保橋水基金成為人們想要發展、成長、建立社區並最終蓬勃發展的地方是我們的目標。如果我們的員工感到高興，我們的客戶就會注意到差異。我堅信我們擁有雙子城最優秀的銀行家，我很感謝他們為推動成功所做的努力。

With that, I'll turn it over to Joe.

有了這個，我會把它交給喬。

Thank you, Jerry. Turning to slide 4, the net interest margin declined 32 basis points to 2.40%. As we expected, this pace of compression slowed from the prior quarters. While the current interest rate environment continues to put pressure on margins across the industry, the pressure we are experiencing is slowing. Since the fourth quarter of 2022, we had seen relatively consistent month-over-month core margin compression in the mid-teens in terms of basis points. This began slowing meaningfully in April, May, and June down to the mid-single digits as rising funding costs decelerated in conjunction with the Fed's moderated rate hiking cycle.

謝謝你，傑瑞。轉向投影片 4，淨利差下降 32 個基點至 2.40%。正如我們預期的那樣，這種壓縮速度較前幾個季度有所放緩。雖然當前的利率環境繼續給整個行業的利潤率帶來壓力，但我們面臨的壓力正在放緩。自 2022 年第四季以來，我們看到核心利潤率逐月相對穩定地壓縮在十幾歲左右的基點上。隨著融資成本上升以及聯準會溫和的升息週期放緩，這一速度在 4 月、5 月和 6 月開始顯著放緩，降至中個位數。

Keep in mind that this month-over-month view is on a core margin basis to exclude the noise from the loan fees and highlight the pure interest component of the margin. On a stand-alone basis, our total net interest margin for the month of June was 2.33% compared to 2.40% for the full quarter. With the additional margin pressure during the quarter as well as a more moderated pace of loan growth, we saw a decline in net interest income. This was also impacted by the continued decline in loan fees as the pace of payoffs remained slow.

請記住，這個月度視圖是在核心保證金的基礎上進行的，以排除貸款費用中的噪音並突出保證金的純利息部分。單獨來看，我們 6 月的總淨利差為 2.33%，整個季度為 2.40%。由於本季額外的利潤壓力以及貸款成長放緩，我們看到淨利息收入下降。由於還款速度仍然緩慢，貸款費用持續下降也影響了這一點。

Slide 5 shows the various components of the margin. Portfolio loan yields moved higher and should continue to do so for the foreseeable future, especially with yields on new originations typically coming on in the 7% to 8% range, many of which are being structured with strong prepayment penalties, which will help cement these higher yields for longer. The fixed rate nature of our loan portfolio means it will take a little longer for the repricing to occur, especially since we have managed our pace of new originations. As we look ahead, we have over $500 million of fixed- and adjustable-rate loans scheduled to reprice over the next year and over $600 million of variable-rate loans efficiently floating.

投影片 5 顯示了邊距的各個組成部分。投資組合貸款收益率走高，並且在可預見的未來應該會繼續走高，特別是新貸款的收益率通常在7% 至8% 的範圍內，其中許多貸款都採用了嚴厲的提前還款罰金，這將有助於鞏固這些貸款更高的產量，持續時間更長。我們的貸款組合的固定利率性質意味著重新定價需要更長的時間，特別是因為我們已經控制了新貸款的節奏。展望未來，我們有超過 5 億美元的固定利率和可調利率貸款計劃在明年重新定價，還有超過 6 億美元的浮動利率貸款有效浮動。

While funding costs have continued to move higher, we did see that pace moderated throughout the quarter as our funding mix improved. Funding costs are likely to remain a challenge given the interest rate environment and ongoing competition for deposits, including treasuries and other market alternatives. There remains many variables and uncertainties that will impact the margin from here, including another Fed hike yesterday. However, we are very encouraged giving several positive trends, including core deposit growth, reduce reliance on borrowings, and a continued upward repricing of the loan portfolio, which together should firm the outlook as we continue to execute.

雖然融資成本持續走高，但隨著我們的融資組合改善，我們確實看到整個季度融資成本放緩。鑑於利率環境和對存款（包括國債和其他市場替代品）的持續競爭，融資成本可能仍然是一個挑戰。仍有許多變數和不確定性將影響利潤率，包括聯準會昨天再次升息。然而，我們對一些積極的趨勢感到非常鼓舞，包括核心存款成長、減少對借款的依賴以及貸款組合的持續上調重新定價，這些因素共同應在我們繼續執行的過程中堅定前景。

Turning to slide 6, we continue to demonstrate a long track record of revenue and profitability, even as the current environment creates near-term revenue headwinds. As expected, this has resulted in lower revenue over the past few quarters as the vast majority of our revenue is spread-based. On the fee side, noninterest income declined from the first quarter, primarily due to nearly $300,000 of FHLB prepayment income last quarter, which didn't recur as well as lower letter of credit fees, which tend to bounce around from quarter to quarter, depending on client activity.

轉向幻燈片 6，我們繼續展示收入和盈利能力的長期記錄，儘管當前的環境造成了近期的收入阻力。正如預期的那樣，這導致過去幾季的收入下降，因為我們的絕大多數收入都是基於價差的。在費用方面，非利息收入較第一季有所下降，主要是由於上季度FHLB 預付款收入近30 萬美元，該收入沒有重複發生，以及信用證費用較低，信用證費用往往會在每個季度反彈，具體取決於關於客戶活動。

Turning to slide 7, our expenses remained very well controlled. After declining 6.7% in the first quarter, noninterest expense increased just 1.4% in the second quarter. The increase included higher industry-wide FDIC insurance expense following the revision of the assessment methodology and subsequent replenishing of the deposit insurance fund coming out of 2022. Over the years, we have done a good job of consistently growing expenses in line with asset growth. While expenses were lower in the first half of 2023 coming in below asset growth, we would expect to see the pace of expense growth pick up in the back half of the year.

轉向投影片 7，我們的開支仍然得到很好的控制。在第一季下降 6.7% 後，第二季非利息支出僅成長 1.4%。這一增長包括評估方法修訂後全行業 FDIC 保險費用的增加以及 2022 年存款保險基金的後續補充。多年來，我們在費用隨資產增長而持續增長方面做得很好。雖然 2023 年上半年費用較低，低於資產成長，但我們預計下半年費用成長速度將會加快。

This incremental expense growth will likely come from investments in our people and technology as well as areas that are impacting all banks such as FDIC insurance expense and IntraFi deposit costs. Overtime, we anticipate expenses and assets to continue to generally track in line, keeping in mind that assets are growing slower this year than they have in prior years. Even with our expense discipline, our efficiency ratio has increased into the low 50% range due to the ongoing revenue challenges. We still maintain a highly efficient operating model, relative to other banks and expect that to remain the case.

這種增量支出成長可能來自對我們的人員和技術以及影響所有銀行的領域的投資，例如 FDIC 保險費用和 IntraFi 存款成本。隨著時間的推移，我們預計支出和資產將繼續整體保持一致，同時考慮到今年資產的成長速度比前幾年慢。即使我們遵守支出紀律，由於持續的收入挑戰，我們的效率比率已升至 50% 的低水平。相對於其他銀行，我們仍然保持高效的營運模式，並預計這種情況將持續下去。

With that, I'll turn it over to Nick Place.

有了這個，我會把它交給尼克普萊斯。

Thanks, Joe. As Jerry mentioned, deposit growth was a highlight of the quarter for us. And as you can see on slide 8, total deposits increased 19.6% annualized during the quarter, including core deposits, which were up 7.4% annualized. As some of the noise from the first quarter subsided, we were able to return our focus toward bringing in new client relationships and growing existing balances consistent with our strategy over the past few years. In fact, we saw increased balances across all of our deposit categories during the quarter, including noninterest-bearing, which increased over 4% annualized.

謝謝，喬。正如傑瑞所提到的，存款成長是我們本季的一大亮點。正如您在投影片 8 中看到的那樣，本季總存款年化成長率為 19.6%，其中核心存款年化成長率為 7.4%。隨著第一季的一些噪音消退，我們能夠將注意力重新集中在引入新的客戶關係和增加現有餘額上，這與我們過去幾年的策略一致。事實上，本季我們所有存款類別的餘額均有所增加，其中包括無利息存款，年化成長率超過 4%。

However, the overall deposit mix has continued to shift toward interest-bearing accounts similar to what other banks are seeing across the industry. We were encouraged to see core deposit growth exceed loan growth during the quarter, allowing us to lower our loan-to-deposit ratio to 104% back within our target range of 95% to 105%. Finally, only 22% of our deposits were uninsured at the end of the second quarter, down from 38% at the end of last year as we continue to optimize FDIC insurance coverage and leverage the IntraFi network.

然而，整體存款結構繼續轉向計息帳戶，類似於行業內其他銀行的情況。我們很高興看到本季核心存款成長超過貸款成長，這使我們能夠將貸存比率降至 104%，回到 95% 至 105% 的目標範圍內。最後，隨著我們繼續優化 FDIC 保險覆蓋範圍並利用 IntraFi 網絡，截至第二季末，我們的存款中只有 22% 沒有保險，低於去年年底的 38%。

Turning to slide 9, as expected, we saw the pace of loan growth in the second quarter continue to moderate to 5.6% annualized. On a year-to-date basis, loans have grown at a 9.4% annualized pace, which is in line with what we expected for the year. Although overall, loan demand remains lower than what we were seeing a year ago, we are still getting in front of plenty of good opportunities. These opportunities include expanding existing client relationships and referrals to high quality new clients.

轉向投影片 9，正如預期的那樣，我們看到第二季貸款成長速度繼續放緩至年化 5.6%。年初至今，貸款年化成長率為 9.4%，符合我們今年的預期。儘管總體而言，貸款需求仍然低於一年前，但我們仍然面臨著許多良好的機會。這些機會包括擴大現有客戶關係以及推薦高品質的新客戶。

We will continue to manage our growth through selective loan pricing and further use of participation sales. While we expect loan growth to remain below historical levels in the near term, the opportunities are there for us to ramp the growth back up when appropriate, as the environment becomes more favorable and as we continue recent momentum on the funding side.

我們將繼續透過選擇性貸款定價和進一步利用參與銷售來管理我們的成長。雖然我們預計短期內貸款成長將保持在歷史水平以下，但隨著環境變得更加有利，並且我們在融資方面延續近期的勢頭，我們有機會在適當的時候回升增長。

On slide 10, you can see the loan growth during the quarter was driven by our construction and development portfolio. This increase continues to be driven by draws on previously originated construction loans as these projects complete their construction phase, many of these balances will migrate to other portfolios. Overall, we remain comfortable with the diversification we have across our loan portfolio.

在投影片 10 上，您可以看到本季的貸款成長是由我們的建築和開發投資組合推動的。隨著這些項目完成建設階段，這一增長繼續受到先前發放的建設貸款的提款推動，其中許多餘額將轉移到其他投資組合。總體而言，我們對貸款組合的多元化仍然感到滿意。

Turning to slide 11, we continued to see a slower pace of new originations, which totaled $47 million in the second quarter, down 82% year over year. Offsetting the reduced originations, are slower payoffs and paydowns, which declined 49% year over year. However, we are seeing our payoff pipeline pick up as interest rates have started to stabilize. This could create an opportunity to reinvest some of these payoffs back into new originations at higher market rates going forward.

轉向投影片 11，我們繼續看到新產品開發速度放緩，第二季總計 4700 萬美元，年減 82%。支出和支出的放緩抵消了支出的減少，支出比去年同期下降了 49%。然而，隨著利率開始穩定，我們看到我們的回報管道正在增加。這可能會創造一個機會，將其中一些收益再投資到未來以更高的市場利率重新投資到新的項目中。

As previously mentioned, we have also been managing our loan growth by selling participations on new originations, including $109 million of participations year to date. The portfolio participations sold has increased each quarter, over the past year, now over $530 million and nearly $670 million, including unfunded commitments. In addition to helping manage our growth, this servicing provides an added revenue benefit as well.

如前所述，我們也透過出售新來源的參與權來管理我們的貸款成長，其中包括今年迄今為止 1.09 億美元的參與權。過去一年中，出售的投資組合參與額每季都在增加，目前已超過 5.3 億美元，接近 6.7 億美元，其中包括未融資的承諾。除了幫助管理我們的成長之外，這項服務還提供了額外的收入優勢。

With that, I'll turn it over to Jeff.

有了這個，我會把它交給傑夫。

Thanks, Nick. Turning to slide 12, we continue to feel good about our asset quality as nonperforming assets remained at very low levels, making up just 0.02% of total assets at the end of June. We had essentially no net charge-offs for the 10th consecutive quarter. In fact, we have had cumulative net charge-offs of just $376,000 since 2017, and we have no loans 30 to 80, 90 days past due. All of this is largely due to our measured risk selection, consistent underwriting standards, active credit oversight, and experienced lending and credit teams.

謝謝，尼克。轉向投影片 12，我們對資產品質持續感覺良好，因為不良資產仍處於非常低的水平，截至 6 月底僅佔總資產的 0.02%。我們連續第十個季度基本上沒有淨沖銷。事實上，自 2017 年以來，我們的累計淨沖銷額僅為 376,000 美元，而且我們沒有逾期 30 至 80、90 天的貸款。這一切很大程度上歸功於我們謹慎的風險選擇、一致的核保標準、積極的信用監督以及經驗豐富的貸款和信貸團隊。

At this point, we are still not seeing any early signs of credit weakness. We are actively monitoring the portfolio and staying engaged with our clients as we do expect normalization at some point. Finally, we remain well reserved at 1.36% of gross loans. The provision for credit losses on loans was $550,000, which was mostly offset by a $500,000 negative provision for unfunded commitments.

目前，我們仍未看到任何信貸疲軟的早期跡象。我們正在積極監控投資組合併與客戶保持聯繫，因為我們確實預計在某個時候會正常化。最後，我們仍保留貸款總額的 1.36%。貸款信用損失準備金為 55 萬美元，大部分被無資金承諾的 50 萬美元負準備金所抵銷。

On slide 13, you can see that our watch and substandard loans both declined modestly during the quarter. This included one relationship that was upgraded from substandard to pass. Substandard loans are pretty evenly split between C&I and CRE, and now make up less than 1% of total loans and just over 6% of total capital. Overall, we feel good about the risk profile of the portfolio and believe it is well positioned as we move into the back half of 2023.

在幻燈片 13 上，您可以看到我們的觀察貸款和次級貸款在本季度均略有下降。其中包括一種從不合格升級為合格的關係。次級貸款在工商業和商業房地產之間的比例相當平均，目前佔貸款總額不到 1%，佔資本總額略高於 6%。總體而言，我們對該投資組合的風險狀況感覺良好，並相信在進入 2023 年下半年時該投資組合處於有利位置。

Turning to slide 14, we provide some more information on our CRE and office portfolios. The majority of our non-owner occupied CRE book is fixed rate, which helps from a repricing risk standpoint. We continue to actively engage with clients that have maturing loans or repricing rates over the next 12 months to identify possible cash flow stream and recommend solutions early in the process if necessary. The current average loan to value of this portfolio was 61%. As of quarter end, we had $196 million of non-owner occupied CRE office exposure, which is about 5% of total loans.

轉向幻燈片 14，我們提供了有關我們的商業房地產和辦公室投資組合的更多資訊。我們的大部分非業主佔用的商業房地產帳簿都是固定利率的，從重新定價風險的角度來看，這很有幫助。我們將繼續積極與未來 12 個月內貸款到期或重新定價利率的客戶合作，以確定可能的現金流，並在必要時儘早推薦解決方案。目前該投資組合的平均貸款成數為 61%。截至季末，我們擁有 1.96 億美元的非業主佔用 CRE 辦公室風險敞口，約佔貸款總額的 5%。

This includes only four loans located in central business districts, totaling $35 million. We continue to monitor this portfolio closely, and we feel good about the outlook given the lower average loan amount, diversified client base, and primary Midwest suburban office exposure. Overall, we haven't noticed any material changes in these portfolios since the last quarter and they continue to perform well. I'll now turn it back over to Joe.

這僅包括位於中央商務區的四筆貸款，總額為 3500 萬美元。我們將繼續密切關注該投資組合，鑑於平均貸款金額較低、客戶群多元化以及主要的中西部郊區辦公室敞口，我們對前景感到樂觀。總體而言，自上個季度以來，我們沒有註意到這些投資組合有任何重大變化，並且它們繼續表現良好。我現在將把它轉回給喬。

Thanks, Jeff. Turning to slide 15, as you'll recall, we took several actions in the first quarter to reinforce our already strong liquidity position. We remain in a similarly strong position at the end of the second quarter with nearly $2 billion of on- and off- balance sheet liquidity, a robust 2.5 times the level of our uninsured deposits. We have not utilized any borrowings from the FRB Discount Window or the new Bank Term Funding program.

謝謝，傑夫。轉向投影片 15，您可能還記得，我們​​在第一季採取了多項行動來加強我們本已強勁的流動性狀況。截至第二季末，我們仍然處於同樣的強勢地位，表內和表外流動性接近 20 億美元，是我們未投保存款水準的 2.5 倍。我們尚未利用 FRB 貼現窗口或新的銀行定期融資計劃的任何借款。

Slide 16 highlights our tangible book value growth and strong capital ratios. Tangible book value per share increased another 1.7% to $12.15 in the second quarter. We continue to demonstrate an ability to consistently grow tangible book value through various market ups and downs. From a capital standpoint, we saw an increase in all of our capital ratios during the quarter, including CET1, which increased from 8.48% to 8.72% and tangible common equity, which increased from 7.23% to 7.39%.

投影片 16 重點介紹了我們的有形帳面價值成長和強勁的資本比率。第二季每股有形帳面價值再成長 1.7% 至 12.15 美元。我們持續展現出在各種市場起伏中持續成長有形帳面價值的能力。從資本角度來看，我們看到本季所有資本比率都有所上升，包括 CET1，從 8.48% 增加到 8.72%，有形普通股從 7.23% 增加到 7.39%。

We are focused on continuing to build these ratios back up over time, given our more managed pace of loan growth and continued earnings retention. From a capital priority standpoint, organic growth remains our primary focus. Beyond that, we continue to review and evaluate potential M&A opportunities. We also have a $25 million stock repurchase program that was approved by the Board in 2022. We did evaluate repurchasing shares during the second quarter with where the stock was trading. However, we felt it was prudent to remain conservative with our capital given the persistent uncertainties in the environment.

鑑於我們對貸款成長速度的控制更加嚴格以及持續的獲利保留，我們的重點是隨著時間的推移繼續恢復這些比率。從資本優先的角度來看，有機成長仍然是我們的首要關注。除此之外，我們繼續審查和評估潛在的併購機會。我們還有一項 2500 萬美元的股票回購計劃，該計劃於 2022 年獲得董事會批准。我們確實在第二季度對股票交易的股票回購進行了評估。然而，鑑於環境持續存在不確定性，我們認為對我們的資本保持保守是謹慎的做法。

We'll continue to evaluate the potential for future share repurchases based on a variety of factors. Overall, we have been very pleased with the recent positive balance sheet trends we have seen, including our growing capital levels, diversified liquidity position, and deposit growth and composition, just to name a few. We believe all of these position us well moving forward.

我們將繼續根據多種因素評估未來股票回購的潛力。總體而言，我們對最近看到的積極的資產負債表趨勢感到非常滿意，包括我們不斷增長的資本水平、多元化的流動性頭寸以及存款增長和組成等等。我們相信所有這些都使我們能夠順利前進。

Turning to slide 17, I'll summarize our thoughts on our near-term expectations. Coming into the year, we expected the pace of loan growth to moderate to the high single digit to low double-digit level in 2023, which is what we have seen so far year to date. Over the back half of the year, we would expect growth to likely be in the high single digit range as we continue to focus on better aligning loan growth with core deposit growth over time.

轉向投影片 17，我將總結我們對近期預期的想法。進入今年，我們預計貸款成長速度將在 2023 年放緩至高個位數至低兩位數水平，這也是我們今年迄今所看到的。今年下半年，我們預計成長可能會在較高的個位數範圍內，因為我們將繼續專注於隨著時間的推移更好地調整貸款成長與核心存款成長。

Our loan-to-deposit ratio briefly moved above 105% in the first quarter, but we were able to bring it back down in our target range of 95% to 105% in the second quarter. The net interest margin continues to be difficult to predict given the various factors. However, with the recent month-over-month trends we mentioned earlier, we would expect the pace of margin compression to continue slowing over the back half of the year, depending on the path of interest rates, the shape of the yield curve and the pace of our core deposit growth and loan payoffs.

第一季我們的貸存比率短暫升至 105% 以上，但第二季我們能夠將其回落到 95% 至 105% 的目標範圍內。考慮到各種因素，淨利差仍然難以預測。然而，根據我們前面提到的最近的逐月趨勢，我們預期利潤率壓縮的步伐將在今年下半年繼續放緩，具體取決於利率走勢、收益率曲線的形狀和我們的核心存款成長和貸款償還的速度。

From an expense standpoint, while expenses were very well controlled in the first half of the year, we do expect an incremental pickup in the back half, specifically related to increased investments in our people and technology as well as FDIC insurance expense and IntraFi deposit costs. And as I mentioned from a capital standpoint, we will look to continue to build our tangible common equity and CET1 ratios going forward as loan growth moderates and earnings are retained.

從費用的角度來看，雖然上半年費用得到了很好的控制，但我們預計下半年費用將逐步回升，特別是與我們的人員和技術投資以及 FDIC 保險費用和 IntraFi 存款成本增加有關。正如我從資本角度提到的，隨著貸款成長放緩和保留獲利，我們將尋求繼續建立有形普通股和 CET1 比率。

I'll now turn it back over to Jerry.

我現在將其轉回給傑瑞。

Thanks, Joe. Finishing up on slide 18, even though the banking industry has changed dramatically in 2023, the strategic priorities we identified at the beginning of the year are still the areas we are focused on midway through this year, and we have made good progress on each of them. We have managed our balance sheet growth and more recently start to see better alignment between loan growth and core deposit growth.

謝謝，喬。幻燈片 18 結束了，儘管 2023 年銀行業發生了巨大變化，但我們年初確定的戰略重點仍然是我們今年中期重點關注的領域，並且在各個方面都取得了良好進展。他們。我們控制了資產負債表的成長，最近開始看到貸款成長和核心存款成長之間更好的一致性。

While we typically grow expenses in line with assets, we have been able to manage this expense growth over the past year, well within the pace of asset growth. In addition, our ability to actively manage credit risk has resulted in superb asset quality across the loan portfolio. And finally, we are taking strategic actions to help better position us down the road, including enhancing our branch footprint and taking steps to expand our C&I function over time. With that, we will open it up for questions.

雖然我們通常會根據資產成長支出，但我們在過去一年中能夠很好地控制支出成長，並與資產成長的速度保持一致。此外，我們積極管理信用風險的能力使得整個貸款組合的資產品質極佳。最後，我們正在採取策略行動，幫助我們在未來的道路上更好地定位，包括擴大我們的分支機構足跡，並採取措施逐步擴大我們的 C&I 功能。至此，我們將開放提問。

(Operator Instructions)

（操作員說明）

Brendan Nosal, Piper Sandler.

布倫丹·諾薩爾，派珀·桑德勒。

Hey, good morning, guys. Hope you are doing well.

嘿，早上好，夥計們。希望你一切順利。

Good morning, Brendan.

早上好，布倫丹。

Just to start off here, maybe trying to put a finer point on the margin outlook. I get that there are so many moving parts that make it tough to really get a clear sense. But if I just do the simple math exercise of taking the monthly progression of margin pressure from slide 4 and continuing to moderate it over the next three months, I kind of get a third quarter margin somewhere in the range of 2.25%. Just kind of curious if that is the reasonable range of expectations for next quarter?

首先，也許試圖對利潤率前景提出更明確的觀點。我知道有太多移動的部分，很難真正獲得清晰的感覺。但如果我只是做一個簡單的數學練習，從幻燈片4 中獲取利潤率壓力的每月進展，並在接下來的三個月內繼續緩和它，我會得到第三季度的利潤率在2.25%的範圍內。只是有點好奇這是否是下個季度的合理預期範圍？

Hey, Brendan, this is Joe. I think, as you said, I mean, the ability to precisely project the trajectory of the margin is certainly difficult as you acknowledged. I think we've been pleased with the continued moderation in slowing of month-over-month compression. I think with the funding remix in the second quarter, certainly is beneficial for margin. I think the moderation of the Fed's hiking cycle has also benefited that. I think as time continues to pass and the loan book continues to reprice, that's obviously beneficial. And so to talk about the precise number is difficult, but I will say we're pleased with the trends.

嘿，布倫丹，這是喬。我認為，正如您所說，我的意思是，正如您所承認的那樣，精確預測邊緣軌蹟的能力肯定是困難的。我認為我們對逐月壓縮放緩的持續放緩感到滿意。我認為，隨著第二季的資金重組，肯定有利於利潤率。我認為聯準會升息週期的放緩也有利於這一點。我認為隨著時間的推移和貸款簿的不斷重新定價，這顯然是有利的。因此，談論確切的數字很困難，但我會說我們對這些趨勢感到滿意。

And I think another thing I'll add too, is we are seeing earlier signs of potential payoff activity in the loan book which, as we've talked about in the past, is certainly beneficial to margin twofold. I think historically, loan fees have contributed about 25 basis points to our loan yields. And so when you think about payoffs, if any of those payoffs have unrecognized deferred fees outstanding, obviously a payoff will accelerate the recognition of those fees.

我想我還要補充的另一件事是，我們在貸款簿中看到了潛在回報活動的早期跡象，正如我們過去所討論的那樣，這肯定對利潤率有雙重好處。我認為從歷史上看，貸款費用為我們的貸款收益率貢獻了大約 25 個基點。因此，當您考慮收益時，如果其中任何收益有未確認的遞延費用，顯然收益將加速這些費用的確認。

And so if you think about the second quarter, I mean, loan fees were only 10 basis points of the loan yield. So that certainly is a catalyst. And the other thing I'd say on that is obviously most of those potential payoffs are at yields inside of where we're originating deals today. So that's certainly margin accretive as well. So if you kind of couple all that together, I think over the long haul, we feel like stabilization is possible. We're pleased with the continued moderation and slowing.

因此，如果你考慮第二季度，我的意思是，貸款費用僅為貸款收益率的 10 個基點。所以這肯定是個催化劑。我要說的另一件事是，顯然大部分潛在回報的收益率都在我們今天發起交易的範圍內。因此，這當然也會增加利潤。因此，如果你將所有這些結合在一起，我認為從長遠來看，我們認為穩定是可能的。我們對持續的溫和和放緩感到滿意。

Got it. All right. Thanks for the thoughts, Joe. Maybe turning to the funding side of the equation, you guys did a really nice job on growing core funding this quarter, which is really nice to see. Maybe for the non-core pieces, though, those higher cost CDs, the broker, the FHLB, can you just talk about kind of what term you guys are putting that product on sheet at? And then how quickly those can reprice lower, should rates fall?

知道了。好的。謝謝你的想法，喬。也許轉向等式的資金方面，你們本季在增加核心資金方面做得非常好，這真的很高興看到。也許對於非核心部分，不過，那些成本較高的 CD、經紀人、FHLB，您能談談您將該產品放在表上的術語嗎？那麼，如果利率下降，這些產品重新定價的速度有多快？

Yeah. I'd say we're trying to be really careful about both sides because obviously, we're liability-sensitive coming into this rate hiking cycle. And so you don't want to materially than change that now when you feel like there's a moderation in the rate hiking cycle and ultimately the curve. I don't think we want to materially change the profile, so we're definitely being balanced as we always have been. So some of that's placing that out the curve three to five years. I think we've been really diligent about maintaining the optionality to the extent we can. So in the brokered markets, taking advantage of callable options as well as in the FHLB markets.

是的。我想說，我們正在努力對雙方都非常小心，因為顯然，我們在進入這個升息週期時對責任敏感。因此，當你覺得升息週期和最終曲線有所緩和時，你不想做出實質改變。我認為我們不想實質地改變形象，所以我們肯定會一如既往地保持平衡。因此，其中一些措施將其推遲了三到五年。我認為我們一直非常努力地盡可能地保持可選性。因此，在經紀市場以及 FHLB 市場中，都要利用可贖回選擇權。

The other thing I'd add, too, which is something we've obviously been diligent throughout this cycle is leveraging the derivatives markets, and that has been directly linked to some of these brokered CDs. While the term of the brokered CD might be short term, the derivative itself is further out the curve, which more aligns with the asset side of the balance sheet. And that's obviously boded well for us. So it's a myriad of terms and options. And I think we really tried to stay balanced for all rate environments, whether it's -- we sit here for longer or we see the Fed cutting rates in the back half of '24. I think it's -- we don't want to overreact. We certainly want to stay balanced, give us options.

我還要補充的另一件事是，我們在整個週期中顯然一直在努力利用衍生性商品市場，這與其中一些經紀 CD 直接相關。雖然經紀 CD 的期限可能是短期的，但衍生性商品本身位於曲線之外，更符合資產負債表的資產面。這對我們來說顯然是個好兆頭。所以這是無數的條款和選項。我認為我們確實試圖在所有利率環境下保持平衡，無論是我們在這裡坐的時間更長，還是我們看到聯準會在 24 年下半年降息。我認為我們不想反應過度。我們當然希望保持平衡，請給我們選擇。

Yeah. Okay. That makes sense. One more feet over a step back. Just on the participations piece, can you just kind of walk us through what the economics of that are? I mean, you're moving so much of your production prudently off sheet to manage the overall balance sheet, we're just kind of wondering what do you guys get for doing that? Is there a -- I don't think there's [a gain on sale of] component, but maybe there is, it's just servicing piece.

是的。好的。這就說得通了。退一步多一尺。就參與而言，您能否向我們介紹一下其經濟效益是什麼？我的意思是，你們謹慎地將大量生產轉移到表外以管理整體資產負債表，我們只是想知道你們這樣做會得到什麼？有沒有——我不認為有[銷售收益]組件，但也許有，它只是維修件。

And then finally, is there the option to ever bring that back onto your own balance sheet or once it's gone, it's gone?

最後，是否可以選擇將其帶回您自己的資產負債表中，或者一旦消失就消失了？

Hey, Brendan, this is Nick. Yeah, we certainly do earn a servicing fee on that portfolio on average, every individual participation sale is negotiated individually. And depending on the terms of that specific transaction, the servicing fee will be higher or lower. Some cases, that's service at a very, very low margin. Sometimes if it's a high yielding asset that we're selling a participation on or maybe able to get a larger servicing fee on that. I don't know the exact number that we tend to earn on that over the whole portfolio, but it's probably in the 1/8 of 1% sort of average area. And we can follow up with specifics.

嘿，布倫丹，這是尼克。是的，我們確實平均賺取該投資組合的服務費，每個單獨的參與銷售都是單獨協商的。根據特定交易的條款，服務費將會更高或更低。在某些情況下，這種服務的利潤率非常非常低。有時，如果我們出售的是高收益資產，或可以從中獲得更高的服務費。我不知道我們在整個投資組合中賺取的確切數字，但它可能在 1% 平均區域的 1/8 內。我們可以跟進具體情況。

Now your question on bringing that back on balance sheet, I mean they are participation sales. I mean, we have relationships with a lot of these banks that we sell participations to, so we don't have any contractual ability to bring that back onto the balance sheet. But certainly as loans payoff and the participation also pays off and we can free that up back up to relend back out.

現在你的問題是將其帶回資產負債表上，我的意思是它們是參與銷售。我的意思是，我們與許多我們出售參與權的銀行都有關係，所以我們沒有任何合約能力將其帶回資產負債表上。但當然，隨著貸款的償還和參與也得到回報，我們可以將其釋放出來以重新借出。

Got it. All right. Thanks for the answer, Nick. Great.

知道了。好的。謝謝你的回答，尼克。偉大的。

Jeff Rulis, D.A. Davidson.

傑夫·魯利斯，D.A.戴維森。

Thanks. Good morning. Just a question on the spot rate on the deposit cost, if you have that, at the end of the quarter, I guess relative to average up 2.66%, is question one. And then two, looking at that beta, where do you see that peaking out at over the cycle? Thanks.

謝謝。早安.只是一個關於存款成本即期利率的問題，如果有的話，在本季末，我想相對於平均利率上漲 2.66%，這是問題一。然後第二個，看看那個測試版，你認為在整個週期中它的峰值在哪裡？謝謝。

Hey, Jeff, this is Joe. Yeah, the spot rate on the deposit side was to 2.86%. On the beta side, I think we've been pleased at where the beta is at, at this far in the cycle. I think, to compare that to prior cycles this is difficult and really ultimately to project where that peak's at. I think we while we leverage more -- the broker deposits obviously contributes to that increasing. But I think when we think about our core deposit base, we feel good about how it's performed thus far. So it's difficult to predict, but I think it's -- we're pleased with how it's performed thus far.

嘿，傑夫，這是喬。是的，存款端的即期利率是2.86%。在測試版方面，我認為我們對週期中到目前為止的測試版所處的位置感到滿意。我認為，與先前的周期進行比較是很困難的，而且最終要預測峰值在哪裡。我認為，雖然我們槓桿率更高，但經紀人存款顯然有助於這一成長。但我認為，當我們考慮我們的核心存款基礎時，我們對其迄今為止的表現感到滿意。所以很難預測，但我認為我們對它迄今為止的表現感到滿意。

Safe to say that deposit costs month to month kind of near the margin deceleration, is that -- are you seeing in that spot at 2.86%, was that rate of increase slowing?

可以肯定地說，存款成本逐月接近保證金減速，是不是——您看到那個位置為 2.86%，增長率是否正在放緩？

Yeah, I think as we talked about earlier, just the remixing of the book I mean the -- that core deposit growth that translated in the second quarter, it certainly comes in at levels inside of more wholesale or borrowed overnight levels. So that has contributed to the slowing of the month over month margin compression.

是的，我認為正如我們之前談到的，只是這本書的重新混合，我的意思是——第二季度轉化的核心存款增長，它肯定處於更多批發或隔夜借入水平內的水平。因此，這導致利潤率逐月壓縮放緩。

Got it. If I could hop to capital, interested in -- if you guys have in-house kind of TCE and CET1 targets, and I guess I ask that in the sense of -- as you consider the buyback in a lot of moving pieces. But relative to capital levels and the like to that -- and maybe for Jerry -- is just on the M&A side. I mean, as you consider transactions back to those capital levels and how do you balance those options?

知道了。如果我可以跳到資本，感興趣的是——如果你們有內部類型的 TCE 和 CET1 目標，我想我是在這個意義上問的——因為你們考慮了很多活動的回購。但相對於資本水準等——也許對傑瑞來說——只是在併購方面。我的意思是，當您考慮將交易恢復到這些資本水平時，您如何平衡這些選擇？

Yeah. I mean, we continue to think of M&A strategically and would continue to be in front of potential acquisitions that would happen down the road, certainly not something in the pipeline for this year. I would site, I guess, more than anything, I'd say it depends on the current environment and how that transaction would be structured. We certainly have access to capital if we found the right deal.

是的。我的意思是，我們繼續策略性地考慮併購，並將繼續關注未來可能發生的潛在收購，當然不是今年正在醞釀的收購。我想，最重要的是，我想說這取決於當前的環境以及交易的結構。如果我們找到合適的交易，我們當然可以獲得資金。

Okay. And targets on the capital levels, is that anything in house or is that just the [dedic] sort of concerted effort to grow those, given the environment?

好的。資本層面的目標是內部的任何目標，還是只是考慮到環境而共同努力發展這些目標？

I think we're just still comfortable growing it throughout the year, but we don't have like a specific -- I'm not going to tell you a specific number that we're trying to achieve on a percentage basis.

我認為我們仍然願意全年成長它，但我們沒有具體的數字——我不會告訴你我們試圖以百分比為基礎實現的具體數字。

Okay. Fair enough. I'll step back. Thanks.

好的。很公平。我會退後一步。謝謝。

Ben Gerlinger, Hovde Group.

Ben Gerlinger，Hovde 集團。

Good morning, everyone.

大家，早安。

Good morning, Ben.

早安，本。

[Just curious] as you kind of dig in a little deeper on deposits, it's a pretty solid quarter. I think Lisa deserves a gift basket at some point this quarter, it was a good uptick. When we think about just the relationship management and adding core deposits, was this one kind of a starting of a new trend. Maybe you found the secret niche or is this something that you just deepening relationships and our kind of came in at once was, kind of curious on why this quarter was so good relative to the past 12 months when rates are up so much?

[只是好奇]當你更深入地研究存款時，你會發現這是一個相當穩定的季度。我認為麗莎在本季度的某個時候應該得到一個禮物籃，這是一個很好的上升。當我們考慮關係管理和增加核心存款時，這是否是新趨勢的開始。也許您發現了秘密的利基市場，或者您只是在加深關係，我們立即介入，有點好奇為什麼本季度相對於過去 12 個月利率上漲如此之多的情況如此出色？

Hey, Ben. It's Nick. Yeah, similar to what our story has been since our founding, and I don't think that there's a silver bullet here. I think it's a great mix of everything. I think in the quarter we had a lot of traction on staying in front of our existing client relationships and in some cases, repatriating some deposits that maybe had moved to treasuries at some point through 2022. So bringing some of those balances back and continue to help.

嘿，本。是尼克。是的，類似我們自成立以來的故事，我認為這裡沒有靈丹妙藥。我認為這是一切的完美結合。我認為，在本季度，我們在保持現有客戶關係方面有很大的動力，在某些情況下，匯回一些可能在2022 年某個時候轉移到國債的存款。因此，將其中一些餘額帶回來並繼續幫助。

Jerry mentioned in the prepared remarks, and I echo those comments, I mean, I feel like we have the best team of bankers in our market and they continue to get in front of phenomenal new client opportunities on the loan and deposit side. And we had some great deposit wins on the quarter with some new client relationships. So I really feel like it's just a culmination of a lot of things coming together. And I feel like the momentum that we have today, we can continue to carry forward with us into the future. So there isn't a single answer there, it's a heavy lift from a big group of folks working on it.

傑瑞在準備好的發言中提到，我同意這些評論，我的意思是，我覺得我們擁有市場上最好的銀行家團隊，他們繼續在貸款和存款方面獲得驚人的新客戶機會。本季我們透過一些新的客戶關係贏得了一些巨大的存款。所以我真的覺得這只是很多事情結合在一起的結果。我覺得我們今天擁有的動力，我們可以繼續發揚光大，走向未來。所以那裡沒有一個單一的答案，這是一大群致力於此的人們的巨大努力。

Got you. And then kind of bigger picture, Jerry, you're -- you worked [to as an] examiner in past life. I was curious just from your advantage point, what you've seen in banking over the past, call it, 30 years or so. Do you think that the regulators or anyone else that kind of suit term of the people watching over the banks that have the same level of concern on commercial real estate and the price degradation that the media has.

明白你了。然後從更大的角度來看，傑瑞，你在過去的生活中擔任過考官。我只是從你的優勢角度好奇，你過去在銀行業看到了什麼，稱之為，30 年左右。您認為監管機構或其他任何人是否會像媒體一樣對商業房地產和價格下跌有同樣程度的關注，從而適應那些關注銀行的人的說法。

Obviously over the past 12 months, you can see cap rates becoming a little bit more of an issue with kind of work from home, not that you guys have a serious issue with your portfolio. I'm just trying to get a sense of what's the reality in terms of conversation on commercial real estate risk relative to the headline association from news articles?

顯然，在過去的 12 個月裡，你可以看到資本化率對於在家工作變得更加成為一個問題，而不是說你們的投資組合有嚴重的問題。我只是想了解一下關於商業房地產風險的對話與新聞文章中的標題關聯的現實情況是什麼？

Well, thanks aging me Ben. Jeff's with me, he's older than I am. So -- but I'll go with it. No, we had a conference call with our regulators I mean, upcoming exam here in about 30 days. Yeah, it's certainly top of mind for them on the commercial real estate front, they're now doing a questionnaire area like a pre-exam questionnaire on commercial real estate and office. And what the portfolio looks like for every one of their upcoming exams, I come back to -- it's individualized and I mean, whether it's Minneapolis or Orlando or Miami or wherever the collateral is which we don't have them there. I'm just saying like in general, I mean, it comes down to that specifics, right?

好吧，謝謝老我本。傑夫和我在一起，他比我大。所以——但我會同意。不，我們與監管機構召開了電話會議，我的意思是，大約 30 天後即將舉行考試。是的，這當然是他們在商業房地產方面最關心的問題，他們現在正在做一個問卷區域，就像商業房地產和辦公室的考前問卷一樣。我回想一下，他們即將舉行的每一次考試的作品集是什麼樣的——它是個性化的，我的意思是，無論是明尼阿波利斯、奧蘭多、邁阿密，還是我們沒有抵押品的任何地方。我只是說一般情況下，我的意思是，這取決於具體情況，對嗎？

So it's the actual property, that security, and that loan -- it's the cash flow, it's individual tenants, it's the guarantors behind it. And every single deal is different. So the -- it seems to me like the media is just throwing everything into one category, and that's just not the case. So I think the examiners overall probably see our side of that, then we reexplain it the way we underwrite things probably better than media does. I think the media is just jumping on it, but that's my thoughts. Jeff, do you have any follow-up on that?

因此，它是實際財產、擔保和貸款——它是現金流、它是個人租戶、它是其背後的擔保人。每筆交易都是不同的。因此，在我看來，媒體只是將所有內容歸為一類，但事實並非如此。所以我認為審查員總體上可能會看到我們的觀點，然後我們重新解釋它，我們承保的方式可能比媒體更好。我認為媒體只是在誇誇其談，但這就是我的想法。傑夫，你對此有什麼後續嗎？

Yeah. No, I would agree. I think everything gets painted with the same brush. It's either central business corridor. It's Class A, it's Class B. And I think that what is missing from that whole analysis is there is a story for each particular property, each particular sponsor. And if you underwrite things correctly, that whether you're in the central business corridor, if you're in the suburban, that you can have a decent performing property.

是的。不，我同意。我認為一切都是用同一把畫筆畫出來的​​。它要么是中央商務走廊。它是 A 類，它是 B 類。我認為整個分析中缺少的是每個特定財產、每個特定贊助商都有一個故事。如果你正確承保，無論你是在中央商務走廊，還是在郊區，你都可以擁有一處表現不錯的房產。

Got you. That's fair. I think we get it as well, on the [south sided]. But it's tough to fight in headline risk, sometimes. All right, guys appreciate the color. That's it from me.

明白你了。這還算公平。我想我們在[南邊]也明白了。但有時，要應對重大風險是很困難的。好吧，夥計們欣賞這個顏色。這就是我說的。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Jerry Baack for any closing remarks. Please go ahead, sir.

我們的問答環節到此結束。我想將會議轉回傑瑞·巴克先生發表閉幕詞。請繼續，先生。

Thanks, everyone, for joining our call today. We are pleased with many of the trends we saw during the quarter. The environment remains challenging, but we have a very strong brand in our market. Our client network has grown and we continue to take market share. I remain very optimistic about the future. Thanks so much for your time today.

感謝大家今天加入我們的電話會議。我們對本季看到的許多趨勢感到滿意。環境仍然充滿挑戰，但我們在市場上擁有非常強大的品牌。我們的客戶網路不斷擴大，我們持續佔據市場份額。我對未來仍然非常樂觀。非常感謝您今天抽出時間。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。