Pathward Financial Inc (CASH) 2025 Q2 法說會逐字稿

Thanks ladies and gentlemen for standing by. And welcome to Pathward Financial's second quarter 2025 earnings conference. (Operator Instructions). As a reminder, this conference call is being recorded. I would now like to turn the conference over to our host, Darby Schoenfeld, Senior Vice President of Investor Relations. Please go ahead.

感謝女士們、先生們的支持。歡迎參加 Pathward Financial 2025 年第二季財報會議。（操作員指令）。提醒一下，本次電話會議正在錄音。現在，我想將會議交給我們的主持人、投資者關係高級副總裁達比·舍恩菲爾德 (Darby Schoenfeld)。請繼續。

Thank you, operator, and welcome. With me today are Pathward Financials CEO, Brett Pharr; and CFO, Greg Sigrist, who will be discussing our operating and financial results for the second quarter of fiscal year 2025, after which we will take your questions. Additional information, including the earnings release, the investor presentation that accompanies our prepared remarks and supplemental slides may be found on our website at pathwardfinancial.com.

謝謝接線員，歡迎您。今天與我一起的還有 Pathward Financials 執行長 Brett Pharr 和財務長 Greg Sigrist，他們將討論我們 2025 財年第二季的營運和財務業績，之後我們將回答您的問題。更多信息，包括收益報告、附帶我們準備好的評論的投資者介紹和補充幻燈片，可以在我們的網站 pathwardfinancial.com 上找到。

As a reminder, our comments may include forward-looking statements, including with respect to anticipated results for future periods. Those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ. The company undertakes no obligation to update any forward-looking statements.

提醒一下，我們的評論可能包括前瞻性陳述，包括對未來預期結果的陳述。這些聲明受風險和不確定性的影響，可能導致實際結果與預期結果不同。該公司不承擔更新任何前瞻性陳述的義務。

Please refer to cautionary language in the earnings release, investor presentation and in the company's filings with the Securities and Exchange Commission, including our most recent filings for additional information covering factors that could cause actual and anticipated results to differ materially from the forward-looking statements.

請參閱收益報告、投資者介紹和公司向美國證券交易委員會提交的文件（包括我們最近提交的文件）中的警示性語言，以獲取可能導致實際和預期結果與前瞻性陳述存在重大差異的因素的更多資​​訊。

Additionally, today, we will be discussing certain non-GAAP financial measures on this conference call. References to non-GAAP measures are only provided to assist you in understanding the company's results and performance trends, particularly in competitive analysis. Reconciliations for such non-GAAP measures are included in the earnings release and the appendix of the investor presentation.

此外，今天我們將在電話會議上討論某些非公認會計準則財務指標。提供非 GAAP 指標的參考只是為了幫助您了解公司的績效和績效趨勢，特別是在競爭分析方面。此類非公認會計準則 (non-GAAP) 指標的對帳資訊包含在收益報告和投資者報告的附錄中。

Finally, all-time periods referenced our fiscal quarters and fiscal years, and all comparisons are to the prior year period unless otherwise noted.

最後，所有時間段均指我們的財政季度和財政年度，並且所有比較均與去年同期進行，除非另有說明。

Now let me turn the call over to Brett Pharr, our CEO.

現在，讓我將電話轉給我們的執行長 Brett Pharr。

Thanks, Darby, and welcome, everyone, to our earnings call. At the halfway point of the fiscal year, we have just completed a fantastic quarter. Our businesses are healthy, and we are optimistic about the future. We've made some significant progress on our goals, especially on our successful execution on our balance sheet strategy. This is allowing us to generate revenue above our asset size and means we do not need to grow our balance sheet to grow revenues.

謝謝，達比，歡迎大家參加我們的收益電話會議。在本財年已過半之際，我們剛剛完成了一個出色的季度。我們的業務健康，我們對未來充滿樂觀。我們在實現目標方面取得了一些重大進展，特別是在成功執行資產負債表策略方面。這使我們能夠產生超過資產規模的收入，並且意味著我們不需要擴大資產負債表來增加收入。

This is clear in our financial performance during this quarter. We are also having a great tax season, which led the way to noninterest income growth during the quarter. We reported earnings of $3.11 per share for the March quarter, which represents year-over-year growth of 21% and net income of $74.3 million. Our results were driven in part by an increase in non-interest income of 7% and net interest income of 5% when compared to the same quarter last year.

這在我們本季的財務業績中表現得很明顯。我們也迎來了一個良好的納稅季，這帶動了本季非利息收入的成長。我們報告 3 月季度每股收益為 3.11 美元，年增 21%，淨收入為 7,430 萬美元。我們的業績部分得益於與去年同期相比非利息收入成長 7% 和淨利息收入成長 5%。

We also expanded our quarterly net interest margin and adjusted net interest margin. Year-to-date, non-interest income now represents 45% of our total revenue and it is our goal to continue to grow this over time. Performance metrics were strong for the first six months of the year with return on average assets of 2.69% and return on average tangible equity of 43.79%.

我們也擴大了季度淨利差和調整後淨利差。年初至今，非利息收入占我們總收入的 45%，我們的目標是隨著時間的推移繼續增長這一比例。今年前六個月的績效指標強勁，平均資產回報率為 2.69%，平均有形權益回報率為 43.79%。

Remember that due to tax season, these metrics generally reached their high-water point during this quarter. We are also pleased to revise our fiscal 2025 guidance to $7.40 to $7.80 earnings per diluted share. Greg will discuss this in more detail. Tax season has been really strong with the team doing a fantastic job of expanding our reach.

請記住，由於納稅季節，這些指標通常在本季度達到最高點。我們也很高興地將 2025 財年預期修改為每股攤薄收益 7.40 美元至 7.80 美元。格雷格將更詳細地討論這一點。稅收季節非常強勁，團隊在擴大業務範圍方面做得非常出色。

We operated with over 42,000 independent tax offices, which is a new record for us. As a reminder, our results include not only the independent tax offices but also tax partnerships. For the six months ended March 31, 2025, we increased non-interest income related to Refund Transfer products and Refund Advance products by 13% each.

我們與超過 42,000 個獨立稅務局合作，這對我們來說是一個新紀錄。提醒一下，我們的結果不僅包括獨立稅務局，還包括稅務合夥企業。截至 2025 年 3 月 31 日的六個月，我們將與退款轉帳產品和退款預付產品相關的非利息收入分別增加了 13%。

Refund Advance origination increased over $100 million this year, representing 7% growth. This brought total tax services revenues to $85 million, growth of 17% when compared to the prior year period. Loss rates are also favorable when compared to last year due to our continued work on our underwriting models and data usage to originate refund advances. So the slight dollar increase in provision you see in our results is volume driven.

今年退款預付款發放增加了 1 億多美元，增幅為 7%。這使得稅務服務總收入達到 8,500 萬美元，與去年同期相比成長了 17%。由於我們持續改善承保模式和數據使用以發放退款預付款，與去年相比，損失率也有所降低。因此，您在我們的結果中看到的撥備金額略有增加，這是由數量驅動的。

Pretax income for tax services grew 29% to $47.6 million, and we are very pleased that this team has been able to produce stable growth and solid results. We continue to make significant progress on our strategy of optimizing the balance sheet. Last quarter, we entered into a strategic partnership to support renewable energy loan growth, and that is going very well.

稅務服務的稅前收入成長了29%，達到4760萬美元，我們非常高興這個團隊能夠實現穩定的成長和穩健的表現。我們在優化資產負債表策略上持續取得重大進展。上個季度，我們建立了策略合作夥伴關係，以支持再生能源貸款成長，而且進展非常順利。

This can be seen in our results with strong originations and structured finance during the quarter and a pipeline that continues to be robust. Our partner Bridge Peak brings strong industry experience to the table, and we expect that co-innovation in this partnership will accelerate efficient, scalable and predictable growth within Pathward's renewable energy initiative.

從我們的業績可以看出，本季我們的融資發起和結構性融資表現強勁，而且融資管道持續強勁。我們的合作夥伴 Bridge Peak 擁有豐富的產業經驗，我們期望此次合作中的共同創新將加速 Pathward 再生能源計畫的高效、可擴展和可預測的成長。

During the quarter, we also took advantage of a premium in the marketplace and sold a portion of our working capital loan portfolio. Greg will go into more detail in a moment on how this further accelerates our optimization strategy. Opportunities in the Partner Solutions pipeline remains strong. These deals can have protracted timelines, and we are tracking each of them with precision and care.

在本季度，我們也利用市場溢價，出售了部分營運資金貸款組合。Greg 稍後會詳細介紹如何進一步加速我們的優化策略。合作夥伴解決方案管道中的機會依然強勁。這些交易可能需要很長的時間，我們會精確而謹慎地追蹤每一項交易。

Our team is working hard to further the opportunities in front of us by tirelessly working with both new and existing clients to ensure we are providing them with the best solutions and capabilities to fit their needs. Our Credit Solutions team continues to explore growth and new opportunities. After the quarter ended, we signed a contract with a new partner to originate loans through their lending marketplace.

我們的團隊正在努力進一步拓展眼前的機遇，透過不懈地與新舊客戶合作，確保為他們提供滿足其需求的最佳解決方案和功能。我們的信用解決方案團隊繼續探索成長和新機會。本季結束後，我們與一家新合作夥伴簽訂了合同，透過他們的借貸市場發放貸款。

Recently, we've talked about our strategy to be the trusted platform that enables our partners to provide and how we intend to accomplish it. I've mentioned in a few places today, how we are delivering on this and in order to continue delivering shareholder value, we stay laser-focused on accomplishing these goals.

最近，我們討論了我們的策略，即成為值得信賴的平台，讓我們的合作夥伴能夠提供服務，以及我們打算如何實現這一目標。我今天在幾個地方提到了我們如何實現這一目標，為了繼續為股東創造價值，我們將全心全意地致力於實現這些目標。

Now I'd like to turn it over to Greg, who will take you through the financials and guidance in more detail.

現在我想把麥克風交給格雷格，他將向你們更詳細地介紹財務狀況和指導。

Thank you, Brett. We're very pleased with a record second quarter, which is characterized by solid revenue growth particularly in net interest income and tax service revenues, while expenses continued to be well managed. Our focus on balance sheet optimization has contributed to our ability to do more with less. This can be seen in our net interest income, which grew 5% and was primarily driven by an improved earning asset mix and higher profitability.

謝謝你，布雷特。我們對第二季創紀錄的業績感到非常高興，該季度收入穩健增長，尤其是淨利息收入和稅收服務收入，同時支出繼續得到良好管理。我們對資產負債表優化的關注有助於我們以更少的投入實現更多的產出。從我們的淨利息收入中可以看出這一點，該收入增長了 5%，主要得益於盈利資產組合的改善和盈利能力的提高。

As a result, the net interest margin of 6.50% in the quarter increased from 6.23% in the prior year period, and our adjusted net interest margin expanded 33 basis points. Provision in the quarter totaled roughly $30 million, in line with volumes in tax refund advances and commercial finance. Non-interest income grew 7% from the prior year, driven primarily by higher secondary market revenues from loan sales and higher tax product fee income, partially offset by a loss on sale of securities.

因此，本季淨利差為 6.50%，高於去年同期的 6.23%，調整後淨利差擴大了 33 個基點。本季的撥備總額約為 3,000 萬美元，與退稅預付款和商業融資的金額一致。非利息收入較上年增長 7%，主要原因是貸款銷售的二級市場收入增加以及稅收產品費用收入增加，但被證券銷售損失部分抵消。

Secondary market revenues were elevated as we had an opportunity to sell the transportation portfolio within working capital, which was in addition to sales from structured finance. This also gave us an opportunity to further optimize the securities portfolio. We expect secondary market revenues to run in the $4 million to $6 million range per quarter for the remainder of the year.

二級市場收入有所提高，因為我們有機會在營運資金範圍內出售運輸組合，這是結構性融資銷售額的補充。這也給了我們進一步優化證券投資組合的機會。我們預計今年剩餘時間內二級市場收入將在每季 400 萬至 600 萬美元之間。

These actions freed up close to $190 million in liquidity, which we would expect to redeploy by the end of the year into other asset classes with either higher risk-adjusted returns for those with optionality and improved return on assets. Expenses in the quarter grew $2.1 million from the prior year, reflecting a modest 1% increase.

這些行動釋放了近 1.9 億美元的流動資金，我們預計到今年年底這些資金將重新部署到其他資產類別中，這些資產類別要么為具有選擇性的資產帶來更高的風險調整後回報，要么提高資產回報率。本季的支出較上年同期增加了 210 萬美元，增幅僅 1%。

As we have mentioned previously, we continue to invest in our technology infrastructure, and this can be seen in the occupancy and equipment expense line. This increase was partially offset by lower compensation and benefits, reflecting a modestly lower FTE count. Deposits held on the company's balance sheet at March 31 declined from a year ago. And custodial deposits held at partner banks on March 31 were $1.1 billion, a slight decrease from $1.2 billion a year ago.

正如我們之前提到的，我們繼續投資於我們的技術基礎設施，這可以從佔用和設備費用中看出。這一增長被較低的薪資和福利部分抵消，反映出全職當量人數略有下降。截至 3 月 31 日，該公司資產負債表上的存款較去年同期下降。3 月 31 日，合作銀行的託管存款為 11 億美元，較去年同期的 12 億美元略有下降。

The year-over-year decline in total deposit balances primarily reflects a return of EIP deposits to the treasury department during last year as well as over $100 million fewer wholesale deposits on the balance sheet. Over the second quarter, the company averaged approximately $606 million in deposits at partner banks, compared to $783 million last year that are earning a rate roughly equal to the effective Fed funds rate.

總存款餘額的同比下降主要反映了去年 EIP 存款返回財政部，以及資產負債表上的批發存款減少 1 億多美元。在第二季度，該公司在合作銀行的存款平均約為 6.06 億美元，而去年同期為 7.83 億美元，利率大致相當於有效聯邦基金利率。

Loans and leases at March 31 were $4.5 billion, a slight increase from the $4.4 billion last year. This represents pretty significant growth since the prior year's total loan balance included insurance premium finance loans. If you exclude these balances in the prior year, loans and leases would have grown 15% year-over-year.

截至 3 月 31 日的貸款和租賃總額為 45 億美元，較去年的 44 億美元略有增加。由於上一年的貸款總額中包含了保險費融資貸款，因此這代表著相當顯著的成長。如果不計入上一年的這些餘額，貸款和租賃將年增 15%。

We are not seeing signs of economic slowdown in our portfolio and performance metrics remain within our historical ranges. Our allowance for credit losses, excluding our seasonal tax service lending, was 101 basis points in the quarter, with an annualized net charge-off rate in the quarter of 61 basis points. Our liquidity remains strong with almost $3.9 billion available.

我們的投資組合中沒有出現經濟放緩的跡象，業績指標仍處於歷史範圍內。本季度，我們的信貸損失準備金（不包括季節性稅務服務貸款）為 101 個基點，本季年化淨沖銷率為 61 個基點。我們的流動性依然強勁，有近 39 億美元可用。

This is higher than where we were last year at this time, and we're extremely pleased with our position. The strong performance during the quarter allowed us to be opportunistic with our share repurchases. As a result, we repurchased roughly 576,000 shares at an average price of $78.11. This brings year-to-date repurchases to almost 1.3 million shares.

這比我們去年同期的水平要高，我們對自己的狀況非常滿意。本季的強勁表現使我們有機會回購股票。因此，我們以平均每股78.11美元的價格回購了約57.6萬股。今年迄今，我們已回購近130萬股。

As Brett mentioned, we are revising our fiscal year 2025 EPS guidance range to $7.40 to $7.80. This includes the following assumptions. No rate cuts for the remainder of the year, we expect net interest margin to exceed those at fiscal year 2024 as a result of our balance sheet optimization. We now expect an effective tax rate of 17% to 21%.

正如Brett所提到的，我們將2025財年每股收益預期範圍調整至7.40美元至7.80美元。這基於以下假設。今年剩餘時間不會降息，我們預計由於資產負債表的優化，淨息差將超過 2024 財年的水平。我們現在預計有效稅率為 17% 至 21%。

Guidance also includes expected share repurchases. And lastly, we would expect expenses to be well managed in the back half of the year, but we will continue to invest in technology as well as risk and compliance. This concludes our prepared remarks. Operator, please open the line for questions.

該指引還包括預期的股票回購。最後，我們預計下半年的支出將得到良好的管理，但我們將繼續在技術以及風險和合規方面進行投資。我們的準備好的演講到此結束。接線員，請打開熱線以回答問題。

(Operator Instructions). Frank Schiraldi, Piper Sandler.

（操作員指令）。弗蘭克·席拉爾迪，派珀·桑德勒。

Hey, good afternoon. You guys -- when you think about -- it seems like the tax business was obviously or is highly scalable here. Just wondered if that -- how you would characterize that going forward? Does that continue to be the case? And as you look out at the competitive landscape out there, any confidence around continuing to grow those independent tax offices at a continued good clip here. as we think about next tax season.

嘿，下午好。你們——當你們思考的時候——似乎稅收業務在這裡顯然是或具有高度可擴展性。只是想知道——您將如何描述這種情況？這種情況還會持續下去嗎？當你觀察外面的競爭格局時，你是否對繼續以持續良好的速度發展這些獨立稅務所充滿信心？當我們考慮下一個納稅季節時。

Yes. Thanks, Frank. The tax business in the last four, five seasons, we've kind of continued to improve our operational effectiveness, our penetration in market share, et cetera. I think a couple of things happened this year. One was we've continued that. And so we are grabbing some percentage points of market share. And also, it's fairly well publicized by the IRS that the amount of refunds this year were higher than normal.

是的。謝謝，弗蘭克。在過去四、五個季度的稅務業務中，我們不斷提高營運效率、市場佔有率滲透率等等。我認為今年發生了幾件事。一是我們繼續這樣做。因此，我們正在搶佔一些市場份額。此外，美國國稅局也公開表示，今年的退稅金額高於往年。

So I mean, I think we will continue to do well in that business. I don't know that year-over-year, we're going to continue to show the increases that we did this year. But we had a good year, and we continue to improve our operations in our underwriting models. So positive on it continuing, maybe just not growth as fast as it did this year.

所以我的意思是，我認為我們將繼續在該業務上做得很好。我不知道與去年同期相比，我們是否會繼續保持今年的成長動能。但我們度過了美好的一年，並且我們繼續改進核保模式的運作。因此，我們對其持續保持樂觀，只是成長速度可能不如今年那麼快。

Okay. I appreciate that. And then just general thoughts on the commercial finance business here. The macro environment, obviously, some significant uncertainty there. If you could just talk about how, you get comfortable if there's areas that you're shying away from, obviously, we saw the contraction in the factoring and asset-based categories. Just trying to get a sense for your thoughts around growth from here, just given all the uncertainty out there.

好的。我很感激。然後只是對這裡的商業金融業務的一般想法。宏觀環境顯然存在一些重大不確定性。如果您可以談談如何讓您對迴避的領域感到安心，顯然，我們看到了保理和資產類別的萎縮。考慮到目前存在的所有不確定性，我只是想了解您對成長的看法。

It's interesting. Of course, we see the same uncertainty, and that impact us the way we think about forward-looking guidance, et cetera. We're not seeing any deterioration at all in the credit quality that we have. Even the same client funding is still staying pretty good. One of the things that is starting to happen, that is an indicator of perhaps some tightening, is we're getting more and more looks at transactions in our pipeline that previously would have been done by traditional C&I.

這很有趣。當然，我們也看到了同樣的不確定性，這影響了我們對前瞻性指導等的看法。我們的信用品質沒有出現任何惡化。即使相同的客戶資金仍然保持相當好。開始發生的事情之一，或許是某種收緊的指標，就是我們越來越多地關注我們管道中的交易，而這些交易以前都是由傳統的 C&I 完成的。

And so we are seeing some of that. Remember, in a downturn, that is actually when our working capital group will do the best because there'll be more higher quality companies coming in the door to us, because they've been turned away from traditional C&I. So I'm pretty optimistic about that going forward. Now we'll see how, for example, equipment lending, the cash flows, which are a higher rated credit, but we'll see kind of how that impacts over time. But again, very secured portfolio and not seeing any cracks whatsoever.

我們也看到了一些這樣的情況。請記住，在經濟低迷時期，我們的營運資金團隊實際上會做得最好，因為會有更多高品質的公司來到我們這裡，因為他們已經被傳統的 C&I 拒之門外。因此我對未來的發展非常樂觀。現在我們將看到，例如設備貸款、現金流，這是一種評級較高的信貸，但我們將看到它隨著時間的推移會產生怎樣的影響。但同樣，投資組合非常安全，沒有出現任何漏洞。

Okay. Great. And then just lastly, on capital return, obviously, continue to be aggressive on buybacks here just given the focus is more on balance sheet optimization than growth, I would say. And just given that equities overall pulled back and maybe there's more value there. Any thoughts about further accelerating the buyback program? I guess, could you talk about what you target or what you expect to target from here in terms of capital return in terms of percentages of total income.

好的。偉大的。最後，關於資本回報，顯然，繼續積極回購，因為重點更多的是資產負債表優化而不是成長，我想說。鑑於股市整體回落，或許還有更多價值。關於進一步加速回購計畫有什麼想法嗎？我想，您能否談談您的目標，或您期望從資本回報（佔總收入的百分比）實現的目標。

Yes, Frank. Thanks, Frank. Appreciate the question. We had originally earlier this year thought we were going to slow down a little bit and take that payout ratio down to call it 70%. But the one metric we are looking at, we're consciously trying to just grow a bit more capital on the balance sheet. But to your point, we're not looking to grow the total assets.

是的，弗蘭克。謝謝，弗蘭克。感謝你的提問。我們原本在今年稍早就想過要稍微放慢速度，將派息率降至 70%。但我們正在關注的一個指標是，我們有意識地試圖在資產負債表上增加一點資本。但正如您所說，我們並不希望增加總資產。

It's really just that additional layer of operational capital. And as a result, we're really targeting a Tier 1 leverage ratio, probably closer to 10%. And just with the profitability we've had we felt that we could keep our buybacks at the current level they were running and get us to that level by the end of the year. So it's a good story for us because we can get to that capital target without really having to slow down the buybacks.

它其實只是額外的營運資本而已。因此，我們真正的目標是實現一級槓桿率，可能接近 10%。並且，憑藉我們已經獲得的獲利能力，我們認為我們可以將回購保持在目前的水平，並在年底前達到這一水平。所以這對我們來說是個好消息，因為我們可以達到資本目標，而不必真正放慢回購速度。

As a result, I think you're going to see buybacks stay in that range of 80% to 90% for the balance of the year. And obviously, we'll have to see beyond that. But I feel really confident we can continue to do that this year.

因此，我認為今年餘下時間回購率將保持在 80% 至 90% 的範圍內。顯然，我們必須看得更遠。但我確信我們今年可以繼續這樣做。

Greate. Okay. Appreciate the colour. Thanks.

太好了。好的。欣賞色彩。謝謝。

Joe Yanchunis, Raymond James.

喬揚丘尼斯、雷蒙德詹姆斯。

Good afternoon. So I kind of want to ask one of Frank's question a little bit different way. So given the amount of payment volume that runs through your company, have you seen any particular change in activity or behavior since liberation day?

午安.所以我想以稍微不同的方式問弗蘭克的一個問題。那麼，考慮到貴公司的支付量，自解放日以來，您是否看到活動或行為有任何特別的變化？

No, not at all. And I think one of the things you have to remember about our book of business with our partners is a large percentage of it is the bottom of the economy. And so this is groceries. This is gas, this is those kinds of things. This is not Nordstrom or Neiman Marcus or anything like that.

不，一點也不。我認為，你必須記住的一件事是，我們與合作夥伴的業務往來很大一部分來自經濟底層。這就是雜貨。這是氣體，這是那些東西。這不是 Nordstrom 或 Neiman Marcus 或類似品牌。

And so we have not seen any change that's measurable in that and really wouldn't expect to regardless of the economic circumstances, because even when people don't have jobs and they have benefit payments and they're still buying gas and they're still buying groceries.

因此，我們沒有看到任何可衡量的變化，而且無論經濟狀況如何，我們也不會期望看到任何可衡量的變化，因為即使人們沒有工作，他們也有福利金，他們仍然會購買汽油，仍然會購買食品雜貨。

Understood. And then kind of pivoting over here. So in your prepared remarks, you discussed the signing of a new partnership to originate loans through a marketplace. Can you provide a little more color on that partnership? And what kind of loans will be the focus?

明白了。然後就轉到這裡了。因此，在您準備好的演講中，您討論了簽署新的合作夥伴關係以透過市場發放貸款。您能否詳細介紹一下這段合作關係？哪些類型的貸款將成為重點？

We have several of these partners that do online consumer term loans that can be anywhere from six months to five years. And so that's the nature of them. They tend to be near prime/subprime. But what you need to remember in that is that there is a very much a waterfall approach to any exposure to credit losses. There's a constant watching of the underwriting models to be sure that anything that's on the balance sheet is adequately covered by reserves.

我們有幾個合作夥伴提供線上消費者定期貸款，貸款期限從六個月到五年不等。這就是它們的本質。它們往往接近優質/次級貸款。但你需要記住的是，對於任何信用損失風險，都應採用瀑布式方法。我們不斷關注承保模型，以確保資產負債表上的所有項目都得到儲備金的充分覆蓋。

But this is very similar to other partnerships we've been doing for a lot of years. And so got a lot of confidence in it, and we watch it very closely and not expecting any problems.

但這與我們多年來一直在進行的其他合作非常相似。因此我們對此非常有信心，並且密切關注它，並不認為會出現任何問題。

Alright. Well, thank you for taking my questions.

好吧。好的，感謝您回答我的問題。

Thank you.

謝謝。

Tim Switzer, Keefe, Bruyette & Woods Inc.

斯威策，Keefe, Bruyette & Woods Inc.

Hey, good afternoon. Thank you for taking my questions. The first question I have is in regards to the margin outlook, particularly the adjusted margin. And your slide indicates that there really isn't much of an impact to the margin regardless of where rates move. Can you guys kind of walk us through the puts and takes there, though, if we do see maybe more cuts than expected on how that would impact reported NII and the adjusted number?

嘿，下午好。感謝您回答我的問題。我的第一個問題是關於利潤率前景，特別是調整後的利潤率。您的投影片顯示，無論利率如何變動，對利潤率的影響其實並不大。但是，如果我們確實看到比預期更多的削減，你們能否向我們介紹一下這將如何影響報告的 NII 和調整後的數字？

Yes. Sure, Tim. Happy to take that one. I think kind of walking through it. I think the story remains the same as what we've talked about the last couple of quarters, right? The curve has obviously been really dynamic lately, particularly just the volatility in the middle part of the curve. But the starting point at overnight rate and to your question, we are still very close to neutral as it relates to the overnight rate.

是的。當然，提姆。很高興接受這個。我認為有點像走過它。我認為故事和我們過去幾季談論的一樣，對嗎？曲線最近顯然非常活躍，特別是曲線中間部分的波動。但從隔夜利率的起點以及您的問題來看，就隔夜利率而言，我們仍然非常接近中性。

And each 25-basis point rate cut is -- the number I recall pretax is maybe $500,000 annual impact. So you'd have to have quite a few of those stacked on top of each other, plus have a few other things, change in our balance sheet composition to have any measurable impact. So the overnight rate, over time, just deepens the curve, which is a benefit to us.

每次降息 25 個基點——我記得稅前數字可能每年造成 50 萬美元的影響。因此，你必須將其中相當多的因素疊加在一起，再加上一些其他因素，改變我們的資產負債表構成才能產生可衡量的影響。因此，隨著時間的推移，隔夜利率曲線就會加深，這對我們有利。

The counter to that, though, we are still continuing to rotate liquidity and assets as we can and as we think is appropriate. Obviously, this quarter, we took an opportunity to sell a bit of our working capital line, which freed up $190 million. That's going to be in addition to roughly $200 million of securities, principal paydowns this next 12 months, which gives us added up a little under $400 million of additional powder that we can deploy.

然而，與此相反，我們仍在盡可能且適當地繼續輪換流動性和資產。顯然，本季度，我們藉此機會出售了部分營運資金，釋放了 1.9 億美元。這將是對未來 12 個月約 2 億美元證券本金償還的補充，這使我們總共擁有略低於 4 億美元的額外資金可供使用。

You're coming off of really low roll-off yields on all of that. And we're going to be able to redeploy that in part into duration assets, duration loans, which is going to continue to give us stability in the net interest margin and the adjusted margin. So when I kind of add all that together, I mean, I think we're pretty close to neutral in terms of how we're managing the balance sheet, but also how I think the rate environment -- a realistic set of rate environment assumptions could play into that adjusted margin over the next couple of quarters. I hope that helps.

所有這些的滾動收益率都非常低。我們將能夠將其部分重新部署到期限資產、期限貸款中，這將繼續為我們提供淨利差和調整後息差的穩定性。因此，當我把所有這些加在一起時，我的意思是，我認為我們在管理資產負債表方面非常接近中性，而且我認為利率環境——一套現實的利率環境假設可能會在未來幾個季度影響調整後的利潤率。我希望這能有所幫助。

Yes, that was really helpful. And there's been a lot of disruption in the past space with some smaller competitors looking to exit or pull back at least. There's another competitor exploring strategic alternatives. Has this created any opportunities for you that you would be interested in pursuing maybe acquiring some new programs or portfolios, entire business lines? And what's kind of your approach to this right now?

是的，這確實很有幫助。過去，該領域出現了許多混亂，一些規模較小的競爭對手希望退出或至少撤退。還有另一個競爭對手正在探索戰略替代方案。這是否為您創造了一些機會，讓您有興趣去追求，例如收購一些新的專案或投資組合，或整個業務線？您現在對此採取什麼方法？

Yes. I mean, for the most part, our approach has been, -- our phone is ringing, and our pipeline is full -- and the approach would be don't buy will naturally come to you anyway. So we're continuing to see that. And a lot of things you're talking about are happening that's creating some opportunities for us and we can kind of pick and choose what we want to take and what makes sense and what doesn't.

是的。我的意思是，在大多數情況下，我們的做法是──我們的電話響個不停，我們的管道也排滿了──而我們的做法就是不買，商品自然就會來找你。所以我們將繼續看到這一點。您所談論的很多事情正在發生，這為我們創造了一些機會，我們可以挑選我們想要的東西、什麼是有意義的、什麼是無意義的。

So I expect that to continue for a while, just because of where we are in the regulatory cycle in BaaS and the market dynamics that are happening that you described.

因此我預計這種情況會持續一段時間，只是因為我們處於 BaaS 的監管週期以及您所描述的正在發生的市場動態。

Yes, makes a lot of sense. Thank you.

是的，很有道理。謝謝。

Thank you.

謝謝。

There are no more questions waiting at this time. So I'll pass the call back over to the management team.

目前沒有其他問題。所以我會把電話轉回給管理團隊。

It's Brett Pharr, thank you for joining today. Have a great day.

我是 Brett Pharr，感謝您今天的收看。祝你有美好的一天。

And that concludes the conference call. Thank you for your participation. Enjoy the rest of your day.

電話會議到此結束。感謝您的參與。享受剩餘的一天。