Bridgewater Bancshares Inc (BWBBP) 2025 Q2 法說會逐字稿

Good morning and welcome to the Bridgewater Bancshares 2025 second-quarter earnings call. My name is Chad, and I will be your conference operator today.

早安，歡迎參加橋水銀行 2025 年第二季財報電話會議。我叫查德，今天我將擔任你們的會議主持人。

(Operator Instructions) Please note that today's call is being recorded.

（操作員指示）請注意，今天的通話正在錄音。

At this time, I would like to introduce Justin Horsman, Vice President of Investor Relations, to begin the conference call. Please go ahead.

現在，我想介紹投資者關係副總裁賈斯汀·霍斯曼 (Justin Horsman) 來開始電話會議。請繼續。

Thank you, Chad, and good morning, everyone. Joining me on today's call are Jerry Baack, Chairman and Chief Executive Officer; Joe Chybowski, President and Chief Financial Officer; Nick Place, Chief Banking Officer; and Jeff Shellberg, Chief Credit Officer.

謝謝你，查德，大家早安。參加今天電話會議的還有董事長兼執行長 Jerry Baack、總裁兼財務長喬·奇博斯基 (Joe Chybowski)、首席銀行官尼克·普萊斯 (Nick Place) 和首席信貸官傑夫·謝爾伯格 (Jeff Shellberg)。

In just a few moments we will provide an overview of our 2025 second-quarter financial results. We'll 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 the call for questions.

稍後我們將概述 2025 年第二季的財務表現。我們將參考橋水基金網站 investors.bridgewaterbankmn.com 投資者關係板塊提供的幻燈片簡報。開場致詞後，我們將開始提問環節。

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. We see the forward-looking statement disclosure in the slide presentation and our 2025 second quarter earnings release for more information about risks and uncertainties which may affect us.

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，這些聲明只是預測，實際結果可能會有重大差異。我們查看幻燈片簡報中的前瞻性聲明揭露和 2025 年第二季收益報告，以獲取有關可能影響我們的風險和不確定性的更多資訊。

The information we will provide today is as of and for the quarter ended June 30, 2025, and we undertake no duty to update the information. We may also disclose non-GAAP financial measures during this call. We believe certain non-gap 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.

我們今天提供的資訊是截至 2025 年 6 月 30 日的季度信息，我們不承擔更新該資訊的義務。我們也可能在本次電話會議中揭露非公認會計準則財務指標。我們相信，除了相關的 GAAP 指標之外，某些非差距財務指標還為投資者提供了有意義的信息，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。

We caution that these disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP. Please see our slide presentation and 2025 second quarter earnings release for reconciliation of non-gap disclosures to the comparable GAAP measures.

我們提醒，這些揭露不應被視為根據 GAAP 確定的經營績效的替代品。請參閱我們的幻燈片簡報和 2025 年第二季財報，以了解非差距揭露與可比較 GAAP 指標的對帳。

I would now like to turn the call over to Bridgewater's Chairman and CEO, Jerry Baack.

現在我想將電話轉給橋水基金董事長兼執行長傑瑞·巴克。

Thank you, Justin, and thank you everyone for joining us this morning. Bridgewater reported another strong quarter highlighted by impressive revenue and balance sheet growth trends, well controlled expenses, and strong asset quality, all driving the consistent tangible book value growth that we are known for.

謝謝你，賈斯汀，也謝謝大家今天早上加入我們。橋水基金報告稱，本季業績表現強勁，收入和資產負債表成長趨勢令人印象深刻，費用控制良好，資產品質強勁，所有這些都推動了我們聞名的有形帳面價值持續成長。

We've been very pleased with the revenue growth trends we have seen over the past several quarters, and especially here in the second quarter. As expected, our loan portfolio continues to re-price higher in the current rate environment, which helped net interest margin expand by 11 basis points.

我們對過去幾季的營收成長趨勢感到非常滿意，尤其是第二季。正如預期的那樣，在當前利率環境下，我們的貸款組合繼續重新定價，這有助於淨利差擴大 11 個基點。

Meanwhile, the momentum we have seen in core deposit growth over the past year has allowed us to ramp up loan growth to more normalized levels, including a 12.5% annualized rate in the second quarter. We continue to see opportunities across CRE, multi-family, C&I, and construction. As a result, net interest income grew $2.2 million during the quarter.

同時，過去一年核心存款成長的勢頭使我們能夠將貸款成長提升到更正常的水平，其中第二季的年化成長率達到 12.5%。我們繼續看到商業房地產、多戶住宅、商業和工業以及建築領域的機會。因此，本季淨利息收入增加了 220 萬美元。

But it wasn't just net interest income that drove total revenue growth. In fact, we generated record fee income even when excluding gain on sale of securities and flood pre-payment income, both of which were one time in nature.

但推動總收入成長的不僅是淨利息收入。事實上，即使不包括證券出售收益和洪水預付收入（這兩項收入本質上都是一次性的），我們的費用收入也創下了歷史新高。

We brought in nearly a million dollars of swap fee income during the quarter and saw over $200,000 of investment advisory fees related to the platform we acquired from First Minnetonka City Bank. This growth in fee income has allowed us to enhance our overall revenue diversification.

我們在本季獲得了近一百萬美元的掉期費收入，並從第一明尼通卡城市銀行收購的平台獲得了超過 20 萬美元的投資諮詢費。費用收入的成長使我們能夠增強整體收入多樣化。

Asset quality remained strong as we saw another quarter with no net charge-offs, while non-performing assets remained steady at 0.19%, about half of peer levels. We didn't see a modest uptick in classified loans, which Jeff will talk more about in a few minutes, but we remain very pleased with the overall quality of our loan portfolio, which has a long track record of being among the best in the industry.

資產品質依然強勁，我們看到本季沒有出現淨沖銷，而不良資產率保持穩定在 0.19%，約為同業水準的一半。我們沒有看到分類貸款出現小幅上漲，傑夫將在幾分鐘後詳細討論這一點，但我們對貸款組合的整體品質仍然非常滿意，該組合長期以來一直是業內最好的。

When we pull all of these results together, we produce another 25% of tangible book value per share growth, as you can see on slide 4.

當我們將所有這些結果匯總在一起時，我們會產生另外 25% 的每股有形帳面價值成長，正如您在投影片 4 中看到的那樣。

After a rare quarterly decline in the fourth quarter of '24 due to our acquisition of First Minnetonka City Bank, tangible book value per share has resumed its consistent growth trend in 2025, up nearly 11% annualized year-to-date. In addition, we opportunistically repurchased $1.6 million of common stock early in the second quarter.

由於我們收購了第一明尼通卡城市銀行，在 2024 年第四季出現了罕見的季度下滑之後，每股有形帳面價值在 2025 年恢復了持續成長趨勢，年初至今年化成長率接近 11%。此外，我們在第二季初趁機回購了價值 160 萬美元的普通股。

Before I turn it over to Joe, I want to take a moment to talk about a few other initiatives we have going on. First, market disruption in the Twin Cities has returned following Old National's recent acquisition of Bremmer Bank.

在將發言權交給喬之前，我想花點時間談談我們正在進行的其他一些舉措。首先，隨著 Old National 銀行最近收購 Bremmer Bank，雙城地區的市場混亂再次出現。

Historically, this type of M&A disruption has been a significant contributor to Bridgewater's growth, both through talent and client acquisition. We don't expect this wave to be any different. We are actively having conversations and marketing the bank to ensure we are viewed as a bank of choice for those looking to continue banking local. We have already seen solid traction in this area.

從歷史上看，這種類型的併購中斷對橋水基金的成長做出了重大貢獻，無論是透過人才還是客戶來獲取。我們預計這波浪潮不會有任何不同。我們正在積極地進行對話和行銷，以確保我們成為那些希望繼續在當地辦理銀行業務的人的首選銀行。我們已經看到該領域取得了堅實的進展。

We have two other long-term initiatives that we expect to complete in the third quarter. The first is the rollout of our enhanced retail and small business online banking platform. The second is the systems conversion of our First Minnetonka City Bank acquisition, which is right on track.

我們還有另外兩項長期計畫預計在第三季完成。首先是推出我們增強的零售和小型企業網路銀行平台。第二是我們對第一明尼通卡城市銀行的收購的系統轉換，目前一切進展順利。

It's also worth mentioning the strong deposit retention we have seen as part of the acquisition, as current balances remain within 3% of acquired balances. I'm so appreciative of the various teams across the bank that have been working diligently to get these projects to the finish line.

另外值得一提的是，我們在收購過程中看到了強勁的存款保留率，因為當前餘額保持在收購餘額的 3% 以內。我非常感謝銀行各團隊的辛勤工作，讓這些專案順利完成。

Lastly, one of our biggest differentiators for Bridgewater is our unconventional culture. While I often don't feel like our culture gets enough credit for the impact it has on the overall success of our business, we were pleased to be again recognized as a top 2025 workplace by the Star Tribune.

最後，橋水基金最大的特色之一就是我們非傳統的文化。雖然我經常覺得我們的文化對於我們業務的整體成功的影響沒有得到足夠的認可，但我們很高興再次被《明星論壇報》評為 2025 年最佳工作場所。

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

說完這些，我就把麥克風交給喬。

Thank you, Jerry. Slide 5 highlights the strong net interest income growth and net interest margin expansion trends we have seen over the past several quarters. This includes 38 basis points of margin expansion since the third quarter of 2024.

謝謝你，傑瑞。投影片 5 重點介紹了我們在過去幾季看到的強勁淨利息收入成長和淨利差擴大趨勢。其中包括自 2024 年第三季以來利潤率擴大 38 個基點。

After net interest margin increased by 19 basis points in the first quarter, our expectation was that the pace of expansion would begin to slow as we got further away from the rate cuts late in 2024. This is exactly what we saw as the second quarter margin expanded 11 basis points to 262. Not surprisingly, we saw our predominantly fixed rate loan portfolio continue to re-price higher in the current environment while our deposit costs began to stabilize.

在第一季淨利差增加 19 個基點之後，我們預計，隨著 2024 年末距離降息越來越遠，擴張速度將開始放緩。這正是我們所看到的，第二季利潤率擴大了 11 個基點，達到 262。毫不奇怪，我們看到我們以固定利率為主的貸款組合在當前環境下繼續重新定價，而我們的存款成本開始穩定。

In addition, loan fees increased this quarter as payoffs ticked up. We also saw continue we also continued to have some benefit from accretion which contributed 5 basis points to the margin in the second quarter, down from 8 basis points last quarter.

此外，隨著還款額的增加，本季貸款費用也有所增加。我們也看到，我們也繼續從增值中受益，這為第二季的利潤率貢獻了 5 個基點，低於上一季的 8 個基點。

Looking ahead, our portfolio is positioned to see ongoing net interest margin expansion in future quarters due to continued loan portfolio repricing. However, we expect only slight margin expansion in the 3rd quarter due to a couple of specific headwinds.

展望未來，由於貸款組合持續重新定價，我們的投資組合將在未來幾季持續擴大淨利差。然而，由於一些特定的不利因素，我們預計第三季的利潤率僅會略有擴大。

First is the $80 million of subordinated debt at 758 we issued in June, which we used to redeem $50 million of outstanding sub debt at 5.25%. We expect this trade-off to create a 7 basis point net dragon margin in the third quarter. Keep in mind that if we had let the outstanding sub debt roll, it would have re-priced to well over 9% in July. So we feel good about the earnings impact of new issuances and the enhanced capital position.

首先是我們在 6 月以 758 的價格發行的 8,000 萬美元次級債務，我們用這筆債務以 5.25% 的利率贖回了 5,000 萬美元的未償還次級債務。我們預計這種權衡將在第三季創造 7 個基點的淨龍利潤率。請記住，如果我們讓未償還的次級債務展期，那麼 7 月其定價將遠高於 9%。因此，我們對新發行債券的獲利影響和增強的資本狀況感到滿意。

The second headwind is that we expect the accretion benefit to continue to diminish going forward. As a result, we could see net interest margin up slightly in the third quarter with more expansion resuming in the fourth quarter, depending on the interest rate environment. Any future rate cuts would certainly be a net benefit to margin. Overall, we've been pleased with the net interest income growth we have seen in recent quarters. With our margin outlook and strong loan pipelines, we believe we can continue this momentum going forward.

第二個不利因素是，我們預期未來吸積效益將持續減弱。因此，我們可能會看到淨利差在第三季略有上升，並在第四季度恢復進一步擴張，具體取決於利率環境。任何未來的降息肯定會為利潤率帶來淨收益。總體而言，我們對最近幾季的淨利息收入成長感到滿意。憑藉我們的利潤前景和強大的貸款管道，我們相信我們可以繼續保持這一勢頭。

Turning to slide 6, you could see the impact of the loan repricing I mentioned as the portfolio loan yield increased 13 basis points to 574 in the second quarter, with $590 million of fixed rate loans scheduled to mature over the next 12 months at a weighted average yield of 565. And another $141 million of adjustable rate loans repricing or maturing at [443], we still have more loan repricing upside ahead of us as new originations in the second quarter were in the mid to upper 6s.

翻到投影片 6，您可以看到我提到的貸款重新定價的影響，因為第二季投資組合貸款收益率增加了 13 個基點，達到 574，其中 5.9 億美元的固定利率貸款計劃在未來 12 個月內到期，加權平均收益率為 565。另外還有 1.41 億美元的可調利率貸款重新定價或到期，利率為 [443]，由於第二季度新發放貸款利率處於 6% 左右的中上水平，我們仍擁有更多的貸款重新定價上行空間。

Deposit costs on the other hand, are stabilizing, down just 2 basis points in the second quarter. We would expect to see continued stabilization absent additional rate cuts. If we do get rate cuts later this year, we have 1.6 billion of funding tied to short-term rates, including 1.3 billion of immediately adjustable deposits that should allow deposit costs to decline further.

另一方面，存款成本趨於穩定，第二季僅下降了 2 個基點。我們預計，如果不進一步降息，經濟將持續保持穩定。如果我們在今年稍後確實降息，我們將有 16 億美元的資金與短期利率掛鉤，其中包括 13 億美元的可立即調整存款，這應該可以使存款成本進一步下降。

I also wanted to mention that the size of our securities portfolio decreased in the second quarter as we sold 58.5 million of securities from the First Minnetonka City Bank portfolio we acquired last year, taking a gain of $474,000. When we announced the acquisition last August, we mentioned the balance sheet optionality it created. Selling a portion of the securities portfolio was one of our options, and we are pleased with the execution.

我還想提一下，我們證券投資組合的規模在第二季度有所減少，因為我們出售了去年收購的第一明尼通卡城市銀行投資組合中的 5850 萬股證券，獲得了 474,000 美元的收益。當我們去年八月宣布收購時，我們提到了它所創造的資產負債表可選性。出售部分證券投資組合是我們的選擇之一，我們對執行情況感到滿意。

Turning to slide 7, you can see that profitability trends continue to increase, primarily due to strong revenue growth. In addition to net interest income, we have also seen meaningful growth in non-interest income, which has historically made up only about 5% of our revenue.

翻到投影片 7，您可以看到獲利趨勢持續上升，這主要歸功於強勁的營收成長。除了淨利息收入外，我們還看到非利息收入顯著成長，而非利息收入過去僅占我們收入的 5% 左右。

Even when backing out the 474,000 securities gain and 301,000 of FHLB pre-payment income, non-interest income increased $773,000 or 37% during the quarter. This was primarily driven by 938,000 of swap fee income as our bankers have begun to more actively offer the swap product to clients. We have now generated swap fee income each of the past four quarters. While these fees have been lumpy, we expect to see additional swap fees going forward. We also saw investment advisory fees, which came over in the First Minnetonka City Bank acquisition settle in around $200,000 per quarter.

即使剔除 474,000 份證券收益和 301,000 份 FHLB 預付款收入，本季非利息收入仍增加了 773,000 美元，增幅為 37%。這主要是由於我們的銀行家開始更積極地向客戶提供掉期產品，從而獲得了 938,000 的掉期費收入。過去四個季度我們每季都產生了掉期費收入。雖然這些費用一直很高，但我們預計未來還會有額外的掉期費用。我們也發現，第一明尼通卡城市銀行收購案產生的投資諮詢費用穩定在每季約 20 萬美元。

On slide 8, non-interest expense remained well controlled and continued to track in line with our expectations. Salaries, occupancy, and technology expenses all remained relatively flat in the second quarter. The majority of the linked quarter increase came from higher FDIC insurance costs, charitable contributions, and marketing expense.

在第 8 張投影片上，非利息支出仍然得到良好控制，並繼續符合我們的預期。第二季度，薪資、入住率和技術費用都保持相對穩定。本季成長的大部分來自於聯邦存款保險公司 (FDIC) 保險費用、慈善捐款和行銷費用的增加。

FDIC insurance costs return to a more normalized level of 750,000, which should be a good run rate in the near term. We also had about 200,000 of charitable contributions related to our partnership with the Federal Home Loan Bank of Des Moines to support affordable housing and community development efforts.

FDIC 保險成本恢復到更正常的 750,000 水平，這在短期內應該是一個良好的運行率。我們還與得梅因聯邦住房貸款銀行合作，獲得了約 20 萬美元的慈善捐款，用於支持經濟適用住房和社區發展工作。

Finally, we would expect market expenses to remain elevated as we have initiatives in place to take advantage of the M&A disruption in the Twin Cities. Overall, with well-controlled expenses and strong revenue growth, we've been able to steadily drive our adjusted efficiency ratio back into the low 50s at 51.5%.

最後，我們預計市場費用將保持在高位，因為我們已經採取措施利用雙城地區的併購中斷。總體而言，透過良好控制的支出和強勁的收入成長，我們能夠穩步將調整後的效率比率推回到 50% 左右的水平，即 51.5%。

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

說完這些，我就把麥克風交給尼克。

Thanks, Joe. Slide 9 highlights the continued strong run of core organic deposit growth we have seen over the past year.

謝謝，喬。幻燈片 9 重點介紹了我們在過去一年中看到的核心有機存款持續強勁增長。

During the second quarter, total deposits increased $74 million, or 7% annualized, while core deposits increased $16 million or 2% annualized. We were pleased with the continued growth in the second quarter, which is typically seasonally low due to tax season and industry cyclicality.

第二季度，總存款增加了 7,400 萬美元，年化成長率為 7%，核心存款增加了 1,600 萬美元，年化成長率為 2%。我們對第二季的持續成長感到滿意，由於稅收季節和行業週期性，第二季的成長通常處於季節性低點。

While we always remind you that our core deposit growth is not always linear from quarter to quarter, given the nature of our deposit base, we have seen a nice extended period of relatively linear growth, which is a credit to the hard work of our teams and the strong Bridgewater brand in the market. We are encouraged by our strong deposit pipeline, especially with the additional opportunities related to the M&A disruption in the Twin Cities.

雖然我們總是提醒您，我們的核心存款成長並不總是逐季度呈線性增長，但考慮到我們存款基礎的性質，我們已經看到了一段較長的相對線性增長期，這歸功於我們團隊的辛勤工作和橋水品牌在市場上的強大地位。我們對我們強大的存款管道感到鼓舞，特別是與雙城併購中斷相關的額外機會。

Turning to the loan portfolio on slide 10, we saw another quarter of robust growth with balances up 12.5% annualized and 14.5% year-to-date, a pace that has exceeded our expectations for the mid to high single digits for 2025. This has really been a function of the strong and consistent run of core deposit growth I just mentioned, which has simply allowed us to be more offensive minded on the loan front.

轉向幻燈片 10 上的貸款組合，我們看到另一個季度的強勁增長，餘額年化增長 12.5%，年初至今增長 14.5%，這一增長速度超過了我們對 2025 年中高個位數增長的預期。這實際上是我剛才提到的核心存款強勁而持續成長的結果，這使得我們在貸款方面更具進攻性。

In fact, even with this level of loan growth, our loan to deposit ratio remains in the lower half of our target range at 97.9%. One thing that has always been a differentiator for Bridgewater is our ability to generate robust loan growth when we want it.

事實上，即使貸款成長率達到這一水平，我們的貸存比仍處於目標範圍的下半部分，為 97.9%。橋水基金的一個獨特優勢在於，我們能夠在需要時實現強勁的貸款成長。

Historically, periods of slower loan growth such as 2023 and 2024 were more a result of slower funding growth than a lack of lending opportunities. With strong core deposit trends and a loan pipeline that remains near a three-year high, we are optimistic about our ability to continue to produce strong loan growth in the near term.

從歷史上看，2023 年和 2024 年等貸款成長放緩的時期更多是由於資金成長放緩，而不是缺乏貸款機會。由於核心存款趨勢強勁且貸款規模仍接近三年來的最高水平，我們對近期繼續實現強勁貸款成長的能力充滿信心。

The ongoing market disruption from Old National's acquisition of Bremer Bank continues to create additional growth opportunities for us. In addition, we have not seen a material impact from tariffs on loan demand so far, something we were more cautious about a few months ago.

Old National 收購 Bremer Bank 所造成的持續市場混亂繼續為我們創造額外的成長機會。此外，到目前為止，我們還沒有看到關稅對貸款需求產生實質影響，幾個月前我們對此還比較謹慎。

On the other hand, the market has become more competitive since last quarter with spreads getting tighter. Given our growth engine, we will likely be more selective going forward as we don't need to stretch on price in order to grow.

另一方面，自上個季度以來，市場競爭變得更加激烈，利差也越來越小。考慮到我們的成長引擎，我們未來可能會更有選擇性，因為我們不需要為了成長而提高價格。

Looking ahead, while we were able to outperform our growth expectations in the first half of the year, we believe mid to high single digit growth remains a good target for us in the back half of the year. This will of course be dependent on the pace of core deposit growth as well as loan payoffs, which can be difficult to predict.

展望未來，雖然我們上半年的成長超出了預期，但我們相信，下半年中高個位數的成長仍然是我們的一個良好目標。這當然取決於核心存款成長速度以及貸款償還速度，而這些可能很難預測。

Slide 11 shows how our strong loan pipeline has translated into elevated levels of new originations over the past few quarters, including second quarter originations more than doubling from a year ago. Loan payoff activity, on the other hand, has fluctuated quite a bit over the past year. We expect payoffs to have an impact one way or the other on the overall pace of loan growth going forward.

投影片 11 顯示了我們強大的貸款管道如何轉化為過去幾季新貸款發放量的增加，其中第二季的貸款發放量比一年前增加了一倍多。另一方面，貸款償還活動在過去一年中波動很大。我們預計，貸款償還將對未來貸款整體成長率產生一定影響。

During the slide 12, the majority of the loan growth in the second quarter was driven by non-owner occupied CRE, which is spread across various property types, including senior housing, industrial and retail. We also saw continued growth in multifamily and C&I. Last quarter, we mentioned our increased focus on the affordable housing vertical. We continue to expect this to be a driver of growth going forward.

在第 12 季度，第二季度的貸款成長主要由非自住商業房地產推動，這些商業房地產涵蓋各種類型的房地產，包括老年住宅、工業和零售。我們也看到多戶住宅和商業與工業領域持續成長。上個季度，我們提到我們更加關注經濟適用房垂直領域。我們繼續預計這將成為未來成長的動力。

Construction is another area where we could have additional balance sheet growth in future quarters. We started seeing an increase in new construction projects in the back half of 2024, and these projects are now starting to fund. Overall, we remain very comfortable with the mix of the loan portfolio, especially given our expertise in the multi-family space.

建築業是我們未來幾季可能實現額外資產負債表成長的另一個領域。我們從 2024 年下半年開始看到新建築項目增加，這些項目現在開始獲得資金。總體而言，我們對貸款組合的結構仍然非常滿意，特別是考慮到我們在多戶型領域的專業知識。

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

說完這些，我就把麥克風交給傑夫。

Thanks, Nick. Slide 13 provides a closer look at our multi-family and office exposure. The positive multi-family trends that we have talked about over the past several quarters have continued throughout 2025. These trends include lower vacancy rates, which recently dropped under 6.5%, strong absorption, and fewer deliveries, all of which suggest a favorable outlook for higher levels of net operating income.

謝謝，尼克。投影片 13 更詳細地展示了我們的多戶住宅和辦公室曝光。我們在過去幾季中談到的積極的多戶型趨勢將持續到 2025 年。這些趨勢包括較低的空置率（最近降至 6.5% 以下）、強勁的吸收量和較少的交付量，所有這些都表明淨營業收入水平上升的前景看好。

In addition, we have a strong track record in this space with only $62,000 of net charge offs of multi-family since the bank was formed in 2005. As Nick mentioned, we continue to expand our affordable housing both locally and on a national basis. The portfolio has grown 15% over the past year to 581 million, with 24% being located outside of Minnesota.

此外，我們在該領域擁有良好的業績記錄，自 2005 年銀行成立以來，多戶住宅的淨沖銷額僅為 62,000 美元。正如尼克所提到的，我們將繼續在當地和全國擴大我們的經濟適用房。該投資組合在過去一年中成長了 15%，達到 5.81 億美元，其中 24% 位於明尼蘇達州以外。

Our non-owner occupied CRE office exposure remains limited at just 5% of total loans. This includes four central business district office loans, only one of which we have any concern about. This is a loan that we moved to substandard and non-accrual in the first quarter due to vacancy issues caused by a major tenant not renewing its lease. We continue -- we expect this to be a longer-term workout and we have agreed to give the borrower more time to stabilize his property. Overall, we feel good about our office portfolio.

我們的非自住 CRE 辦公室風險敞口仍然有限，僅佔總貸款的 5%。其中包括四筆中央商務區辦公室貸款，其中只有一筆令我們擔憂。由於主要租戶未續租而導致空置問題，我們在第一季將這筆貸款轉為次級貸款和非應計貸款。我們繼續——我們預計這將是一項長期解決方案，並且我們同意給予借款人更多時間來穩定其財產。總體而言，我們對我們的辦公室投資組合感到滿意。

Turning to slide 14, our overall credit profile remains very strong. The provision for the quarter increased to $2 million, which was primarily growth driven, but also included an additional specific reserve for the central business district office on I previously mentioned.

轉到第 14 張投影片，我們的整體信用狀況仍然非常強勁。本季的準備金增加到 200 萬美元，這主要是由於成長推動，但也包括我之前提到的中央商務區辦公室的額外專案儲備。

We remain well reserved at 1.35% of loans. Non-performing assets declined slightly to just 0.19% of total assets, well below peer levels, but we also had another quarter of no net charge offs. While overall asset quality remains strong, we did have some modest credit migration into watch, special mention and substandard during the quarter, as you can see on slide 15. The increase in special mention was due to a multi-family property that is now under a letter of intent and moving towards a purchase agreement. We expect this to be off the books by the end of the year with no loss to the bank.

我們仍將貸款保留在 1.35% 的水平。不良資產略有下降，僅佔總資產的 0.19%，遠低於同業水平，但我們還有一個季度沒有淨沖銷。雖然整體資產品質依然強勁，但本季確實有一些信貸轉向關注、特別提及和不合格，正如您在投影片 15 中看到的那樣。特別提名的增加是由於一處多戶住宅物業目前已簽署意向書並即將達成購買協議。我們預計這筆款項將在年底前結清，不會為銀行帶來任何損失。

The increase in substandard was due to one relationship consisting of a multi-family property and other smaller loans across various asset classes. Credit weaknesses in these relationships were identified through our risk management processes, and we are actively working with our clients on resolutions.

次級貸款的增加是由於一種由多戶住宅和其他跨不同資產類別的小額貸款組成的關係造成的。我們透過風險管理流程發現了這些關係中的信用弱點，並且正在積極與客戶合作尋求解決方案。

Importantly, we do not see these migrations as systemic credit issues as our overall portfolio is performing well, and the multi-family sector continues to show favorable trends.

重要的是，我們並不認為這些遷移是系統性信貸問題，因為我們的整體投資組合表現良好，而且多戶型住宅部門繼續呈現良好趨勢。

I don't turn it back over to Joe.

我不會把它交還給喬。

Thanks Jeff. Slide 16 highlights our capital ratios, which held steady in the second quarter, including our CET1 ratio, which remained at 9.03%. You can also see the impact of the refinance and upsize of our subordinated debt as total risk-based capital increased 55 basis points. During the quarter, we repurchased 1.6 million of common stock in April at an average price of 1,280.

謝謝傑夫。幻燈片 16 重點介紹了我們的資本比率，該比率在第二季度保持穩定，其中我們的 CET1 比率保持在 9.03%。您還可以看到我們的次級債務再融資和增加的影響，因為總風險資本增加了 55 個基點。本季度，我們在 4 月以平均 1,280 美元的價格回購了 160 萬股普通股。

We will continue to evaluate future repurchases based on a variety of factors including valuation, capital levels, growth opportunities, and other uses of capital. As of quarter end, we still have $13.1 million remaining under our current share repurchase authorization. Our board has also extended the expiration date of our current share repurchase authorization from August 20, 2025 to August 26, 2026. In the near term, we expect capital levels to hold relatively stable given earnings retention and our stronger growth outlook.

我們將繼續根據估值、資本水準、成長機會和其他資本用途等多種因素評估未來的回購。截至季末，我們目前的股票回購授權仍有 1,310 萬美元剩餘。我們的董事會也將目前股票回購授權的到期日從 2025 年 8 月 20 日延長至 2026 年 8 月 26 日。鑑於獲利保留和更強勁的成長前景，我們預計短期內資本水準將保持相對穩定。

Turning to slide 17, I'll recap our near-term expectations. While we saw stronger than expected loan growth in the first half of the year, we feel that mid to high single digit growth in the back half of the year remains a good run rate.

翻到第 17 張投影片，我將回顧我們的近期預期。雖然我們看到上半年貸款成長強於預期，但我們認為下半年中高個位數的成長仍然是一個良好的運作率。

This is a function of our strong pipelines and opportunities we are seeing in the market. However, it will also be dependent on the pace of core deposit growth and our ability to remain within our target loan to deposit ratio range of 95 to 105.

這是我們在市場上看到的強大管道和機會的結果。然而，這也取決於核心存款的成長速度以及我們維持 95 至 105 的目標貸存比範圍的能力。

We expect to see additional net interest margin expansion in future quarters due to the ongoing repricing of the loan portfolio, but likely only slight expansion in the third quarter due to the 7-basis point net headwind related to the subordinated debt issuance.

由於貸款組合的持續重新定價，我們預計未來幾季淨利差將進一步擴大，但由於次級債務發行帶來的 7 個基點的淨逆風，第三季淨利差可能只會略有擴大。

If we do get any rate cuts later this year, we would likely see additional margin expansion. Overall, we feel good about our ability to continue driving net interest income growth. From an expense standpoint, we remain on track for full-year 2025 non-interest expense growth in the high 10s, excluding merger-related expenses.

如果我們今年稍後確實降息，我們可能會看到利潤率進一步擴大。整體而言，我們對持續推動淨利息收入成長的能力充滿信心。從支出角度來看，我們仍有望實現 2025 年全年非利息支出成長率達到 10% 以上（不包括合併相關支出）。

As a reminder, this higher-than-normal pace in 2025 is to help support the larger asset base following the acquisition, as well as some redundant expenses until we reach systems conversion in the third quarter. We also feel we are well reserved at current levels and would expect provision to remain dependent on the pace of loan growth in the overall asset quality of the portfolio.

提醒一下，2025 年高於正常水準的速度是為了幫助支援收購後的更大資產基礎，以及一些冗餘費用，直到我們在第三季實現系統轉換。我們也認為，在目前的水平上，我們的儲備充足，並預計撥備仍將取決於投資組合整體資產品質的貸款成長速度。

I'll now turn it back over to Jerry.

現在我將把發言權交還給傑瑞。

Thanks Joe. Finishing up on slide 18, I want to provide a quick update of our 2025 strategic priorities. During the first half of the year, we have certainly returned to a more normalized level of loan growth as we put some of the strong core deposit growth to work, including the deposits from our recent acquisition.

謝謝喬。最後，在第18張投影片上，我想快速更新我們2025年的策略重點。今年上半年，隨著我們利用一些強勁的核心存款成長（包括我們最近收購的存款），我們的貸款成長無疑已恢復到更正常的水平。

Gaining market share remains a focus, and continued market disruption in the Twin Cities is an opportunity for us, both from a client and talent standpoint. We have already started seeing some early wins on both fronts. We also continue to gain traction in the affordable housing and CNI spaces.

獲得市場份額仍然是我們的重點，無論從客戶還是人才的角度來看，雙城市場的持續動盪對我們來說都是一個機會。我們已經開始看到這兩個方面都取得了一些早期的勝利。我們在經濟適用房和 CNI 領域也持續取得進展。

Finally, our teams remain on track for two significant technology initiatives in the third quarter, including an upgraded retail and small business online banking platform and the systems conversion of our recent acquisition.

最後，我們的團隊在第三季仍將推動兩項重要的技術舉措，包括升級零售和小型企業網路銀行平台以及我們最近收購的系統轉換。

With that, we'll open it up for questions.

有了這些，我們就可以開始提問了。

(Operator Instructions) Jeff Willis, DA Davidson.

（操作員指示）傑夫威利斯，DA 戴維森。

Just a question on the margin, do you guys have a June average for the margin? I know that we've got some headwinds in the third quarter, but it's always a good jump off point.

只是一個關於利潤率的問題，你們有六月的利潤率平均值嗎？我知道我們在第三季遇到了一些阻力，但這始終是一個很好的起點。

Yeah, Jeff, it was 265 stand-alone in June.

是的，傑夫，6 月的獨立人數是 265 人。

Thanks. And Joe, just on the security sale, could you remind us of the kind of rate that that was at relative to the securities portfolio, total rate.

謝謝。喬，僅就證券銷售而言，您能否提醒我們相對於證券投資組合的總利率而言的利率。

Yeah, so it was primarily treasuries and mortgage backed securities in the low fours. So obviously, we had marked that. Upon acquisition, so it's below the blended securities portfolio yield. So I think we felt not only that but also just given to redeploy that into any sort of loan growth in the mid to high sixes, definitely was a good trade, and I think we'd always planned on doing that. If the opportunity arose, and certainly that did in early April with all the rate volatility.

是的，所以低位主要是國債和抵押貸款支持證券。顯然，我們已經標記了這一點。收購後，其收益率低於混合證券投資組合收益率。所以我認為我們不僅感覺到了這一點，而且考慮到將其重新部署到中高水平的任何貸款增長中，這絕對是一項很好的交易，我認為我們一直計劃這樣做。如果機會出現，那麼在四月初利率波動的情況下，機會確實出現了。

Gotcha. And then, on the swap fees, I know these seem like they're going to be lumpy, but it does feel like, more of a recurring lumpiness and I guess is there first any seasonality that that you expect by quarter with these and then I don't know if there's any kind of range bound. Expectation for going forward other than maybe these might be more recurring than not.

明白了。然後，關於掉期費用，我知道這些費用看起來會比較大，但感覺更像是一種反覆出現的大幅度波動，我想首先是否存在您預期的按季度出現的季節性，然後我不知道是否存在任何類型的區間波動。除了這些之外，對未來的期望可能會更加頻繁。

Hey Jeff, this is Nick. Yeah, I mean we've had a strategic focus internally to, drive swaps as a tool that we're leveraging more as we originate, loans to the balance sheet, we've trained staff, we've put sort of incentive plans in place, we've educated clients about it, so it's really difficult to predict.

嘿傑夫，我是尼克。是的，我的意思是，我們在內部有一個戰略重點，推動掉期作為一種工具，我們在發放貸款到資產負債表時會更多地利用這種工具，我們已經培訓了員工，我們已經制定了激勵計劃，我們已經對客戶進行了教育，所以這真的很難預測。

When those transactions will actually close with swaps on them, we had some that closed, right at the end of the quarter, which, could have easily slid into Q3, so I think it should be a more consistent part of the of the business long term. Quarter over quarter though, it's really hard to predict, what that level should be, but we feel good about the continued momentum that we're having. It isn't just one of our bankers that's doing it. I think it's really spread across a big chunk of our bankers.

當這些交易實際上透過掉期交易結束時，我們有一些交易已經在本季末完成，這很容易滑入第三季度，所以我認為從長遠來看，這應該是業務中更穩定的一部分。雖然每個季度都很難預測這個水平應該是多少，但我們對持續的成長勢頭感到滿意。這樣做的不僅僅是我們的一位銀行家。我認為它確實蔓延到了我們大部分銀行家。

So as we continue to have a pipeline that's strong, I'd expect that we're going to continue to use that as a tool, not only from a income perspective, but from a margin sort of defensive perspective on increasing the volume of variable rate transactions on our balance sheet long term. So there's a lot of positive stuff doing it and I think we're as a team really committed to using that tool more going forward.

因此，隨著我們繼續擁有強大的管道，我希望我們將繼續將其作為一種工具，不僅從收入角度，而且從保證金的防禦角度來增加我們資產負債表上長期浮動利率交易的數量。因此，這樣做有很多積極的作用，我認為我們作為一個團隊真的致力於在未來更多地使用這個工具。

And Nick, maybe just the last one, just the competitiveness in that line item is you when you reach out to customers, you push it more, you facing a competition kind of with that landscape like.

尼克，也許只是最後一個，該專案中的競爭力就是當你接觸客戶時，你會更加努力，你面臨著與那種環境的競爭。

Yeah, I mean, we've talked in prior quarters. I mean, as a lot of the liquidity concerns in the in the banking space have somewhat subsided over the last 12, 6 to 12 months, we've seen more banks that were on the sideline kind of get back in the market. So, that has driven spreads to tighten a bit here. I think, we mentioned it in the prepared remarks. Our pipeline is really at a three-year high we feel really good about the opportunities that we're getting in front of.

是的，我的意思是，我們在前幾個季度已經談過了。我的意思是，由於銀行領域的許多流動性問題在過去 12 個月、6 個月到 12 個月內有所消退，我們看到更多處於觀望狀態的銀行重返市場。因此，這導致利差略有收窄。我想，我們在準備好的發言中提到了這一點。我們的管道確實處於三年來的最高水平，我們對眼前的機會感到非常滿意。

So, we're trying to be selective on the opportunities that we're moving forward on and trying to find ones where we can garner a little bit of a wider margin to them, I think that that The swap, I mean, these two things are related to, I mean, we are leveraging the swap product as an opportunity to win the good business that we want to have because the client is able to trade into a more competitive fixed rate than what we would predominantly hold on balance sheets.

因此，我們試圖選擇性地把握我們正在推進的機會，並試圖找到那些我們可以從中獲得更大利潤的機會，我認為掉期，我的意思是，這兩件事是相關的，我的意思是，我們正在利用掉期產品作為一個機會來贏得我們想要的良好業務，因為客戶能夠以比我們主要在資產負債表上持有的更具競爭力的固定利率進行交易。

So I think these two things work well together in the sense of, the increased competition does sort of incentivize our client and our bankers to think more about that swap product as a way to get the client to the lower fixed rate that they're looking for.

因此，我認為這兩件事在某種意義上可以很好地結合在一起，競爭的加劇確實會激勵我們的客戶和銀行家更多地考慮掉期產品，以便讓客戶獲得他們想要的較低固定利率。

Adam Kroll, Piper Sandler.

亞當·克羅爾、派珀·桑德勒。

This is Adam Kroll on for Nate Race. Yeah, so you guys obviously had really strong bone growth during the quarter and especially within CRE. So I was just curious, you expect CRE to be the primary driver of growth in the back half and just wondering if you could expand on what you're seeing in terms of competition and if spreads of compressed at all.

這是亞當克羅爾 (Adam Kroll) 代替內特雷斯 (Nate Race) 表演。是的，所以你們在本季顯然實現了非常強勁的骨骼成長，特別是在 CRE 領域。所以我只是很好奇，您是否預計 CRE 將成為下半年成長的主要驅動力，並且只是想知道您是否可以詳細說明您在競爭方面看到的情況以及利差是否完全壓縮。

Yeah, hey, this is Nick. I would say that in the back half of the year we expect, our growth to just be in line with all of our typical verticals. So, Q2 saw a little bit of a higher increase in our CRE balances versus our multi-family portfolio, quarter over quarter, I think those two buckets, there isn't any real seasonality or direction as to why one would increase more than the other. It's really just sort of opportunity dependent, so. As we think about where we're going to grow in the back half of the year, I think it's, sort of commensurate with all of our legacy business lines. We did touch on we're seeing a lot more opportunities within the affordable housing space, those transactions do land in various buckets in our portfolio from multi-family to C&I, so you know that.

是的，嘿，這是尼克。我想說的是，我們預計今年下半年我們的成長將與我們所有的典型垂直產業保持一致。因此，與多戶型投資組合相比，第二季度我們的 CRE 餘額環比增長略高，我認為這兩個方面並不存在真正的季節性或方向性，無法解釋為什麼其中一個比另一個增長更多。這實際上只是一種機會依賴，所以。當我們思考下半年的成長方向時，我認為這與我們所有的傳統業務線是相稱的。我們確實提到，我們在經濟適用房領域看到了更多的機會，這些交易確實涉及我們投資組合中從多戶住宅到商業和工業等各個領域，所以你知道這一點。

That vertical continues to grow as we expand our client base nationally in that footprint or in that vertical. So we're opportunities are pleased that we're seeing opportunities there and expect that to continue to drive balance sheet growth for us, on the competitive side, I touched on it briefly with Jeff's comments, but we continue to see competition from local players in the market that are back from being on the sidelines in past quarters.

隨著我們在全國範圍內擴大客戶群或垂直領域，該垂直領域將繼續成長。因此，我們很高興看到那裡的機會，並期望這將繼續推動我們的資產負債表增長，在競爭方面，我在傑夫的評論中簡要談到了這一點，但我們繼續看到來自市場上本地參與者的競爭，他們在過去幾個季度中一直處於觀望狀態。

The M&A or the acquisition of Bremer Bank from Old National, I mean, I think that those are two very active players in our market, so we're, keenly watching what will happen as those two institutions merge together. I mean, we do think that. Should shake loose more opportunities for us as I don't think that the combined production of those two legacy businesses will equate to what the ongoing production will be for the combined organization. So we do think that with the client overlap of those two banks and you know that that should drive some additional opportunities for us in the long term too, so that's certainly something we're keeping an eye on.

我的意思是，我認為布雷默銀行和 Old National 銀行的併購是我們市場上兩個非常活躍的參與者，所以我們熱切地關注著這兩個機構合併後會發生什麼。我的意思是，我們確實這麼認為。應該為我們帶來更多的機會，因為我不認為這兩個傳統業務的合併產量將等同於合併後組織的持續產量。因此，我們確實認為，這兩家銀行的客戶重疊也會為我們帶來一些長期的額外機會，所以這當然是我們正在關注的事情。

Got it. That's super helpful. So I guess another one for me is just as you con convert FMCB over to your systems, just curious what you're hearing and seeing on the M&A front these days and if you're seeing any similar opportunities.

知道了。這非常有幫助。所以我想對我來說另一個問題是，就像您將 FMCB 轉換到您的系統中一樣，我只是好奇您最近在併購方面聽到和看到了什麼，以及您是否看到任何類似的機會。

This is Jerry, similar to what I've said in past quarters, we're always talking to other bankers out there, other CEOs and owners of banks, and, continue to have conversations, certainly nothing that's eminent. But I will say that organic growth is first and foremost what we're looking for and with the opportunities out there right now, that's what we're focusing on, but it doesn't mean that we haven't had conversations.

這是傑瑞，與我在過去幾季所說的類似，我們一直在與其他銀行家、其他執行長和銀行所有者進行交談，並且繼續進行對話，當然沒有什麼突出的事情。但我要說的是，有機成長是我們首先尋求的，而有了現在的機會，這就是我們關注的重點，但這並不意味著我們沒有進行過對話。

(Operator Instructions) [Brendan Nossel, Hadi Group].

（操作員指示）[Brendan Nossel，哈迪集團]。

Hi, [Susanera Bohan] on for Brendan. I just had two questions, looping back on the NIM, understanding your prepared remarks you talked about the impact of taking out sub debt, but we were wondering how we should think about in there after and if there's any benefit that will be seen from the loan repricing.

大家好，[Susanera Bohan] 代表布倫丹發言。我只想問兩個問題，回到 NIM，我理解您準備好的發言，您談到了承擔次級債務的影響，但我們想知道之後我們應該如何考慮，以及貸款重新定價是否會帶來任何好處。

Yeah, this is Joe. So I think as we called out in prepared remarks, we really wanted to highlight just the sub debt dynamic in the third quarter, but I think generally as we think about the NIM expansion dynamics, which have translated over the last couple quarters, we still think, those are well underway. The loan repricing, as we've highlighted, continues to translate. We feel really good about that. And the deposit portfolio, albeit stabilized, we still see opportunities, to grind deposit costs lower even without a rate cut.

是的，我是喬。正如我們在準備好的發言中提到的，我們實際上只是想強調第三季的次級債動態，但總的來說，當我們考慮到過去幾季已經實現的淨利差擴張動態時，我們仍然認為這些動態正在順利進行。正如我們所強調的，貸款重新定價仍在繼續。我們對此感到非常高興。儘管存款組合已經穩定，但我們仍然看到機會，即使不降息，也可以降低存款成本。

So I think the underlying dynamics we feel really good about continued margin expansion, but we just wanted to highlight, kind of the dynamics in the third quarter just given the upsize of the sub debt and just the impact that that has specifically to them. But I think, over the long haul we're bullish on continued margin expansion.

因此，我認為我們對持續的利潤率擴張感到非常樂觀，但我們只是想強調第三季的動態，因為次級債務的增加以及這對他們的影響。但我認為，從長遠來看，我們看好利潤率的持續擴大。

Thank you. And the other question is just to do with your funding side. Is there any down or repricing you can still squeeze out of funding cost, or is it really dependent on for the rate costs? I know you said you could do it. Most likely without the recuts, but is there any other color that you can add?

謝謝。另一個問題與您的資金方面有關。您是否仍可以透過降低或重新定價來降低融資成本，還是真的依賴利率成本？我知道你說過你能做到。很可能不需要重新剪輯，但是您可以添加其他顏色嗎？

Yeah, I think we continue to look at opportunities across our deposit portfolios. All of our bankers, our asset liability committee, goes relationship by relationship looking at opportunities where we could, rationalize costs lower. So it's an ongoing effort. I think it's relationship by relationship and so we still see opportunities there, I'd also say.

是的，我認為我們會繼續尋找存款組合中的機會。我們所有的銀行家、我們的資產負債委員會都在與各個關係中尋找機會，以合理化降低成本。所以這是一項持續的努力。我認為這是一個關係一個關係的問題，所以我們仍然在那裡看到機會，我想說。

In the second quarter, just given the volatility kind of early on around April, we found a lot of opportunities to call some more wholesale funding on the brokered CD side and reissue lower. So I think we're we're always looking for those opportunities on the wholesale side just given, the efficiency in those markets, to continue to push funding costs lower.

在第二季度，考慮到 4 月初的波動性，我們發現了許多機會，可以在經紀 CD 方面調用更多批發融資，並以更低的價格重新發行。因此，我認為我們一直在尋找批發方面的機會，提高這些市場的效率，並繼續降低融資成本。

Thank you. And ladies and gentlemen, this concludes our question and answer session. I would now like to turn the conference back over to Jerry Bock for any closing remarks.

謝謝。女士們、先生們，我們的問答環節到此結束。現在我想將會議交還給傑裡·博克 (Jerry Bock) 做結束語。

Thank you everyone for joining the call today. I just want to reiterate how excited we are about the recent trends and opportunities we're seeing in the marketplace. I'd also like to thank all of our team members and the energy they provide each day. And I will leave it at that. Thanks, everyone. Bye.

感謝大家今天參加電話會議。我只是想重申我們對市場上看到的最新趨勢和機會感到多麼興奮。我還要感謝我們團隊的所有成員以及他們每天提供的能量。我就講到這裡。謝謝大家。再見。

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

謝謝您，先生。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。