Cathay General Bancorp (CATY) 2023 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Cathay General Bancorp's First Quarter of 2023 Earnings Conference Call. My name is Anjay, and I'll be your coordinator for today. (Operator Instructions) Today's call is being recorded and will be available for replay at www.cathaygeneralbancorp.com.

女士們先生們，下午好，歡迎來到國泰金控 2023 年第一季度收益電話會議。我叫 Anjay，今天我將擔任你們的協調員。 （操作員說明）今天的通話正在錄製中，可在 www.cathaygeneralbancorp.com 上重播。

Now I would like to turn the call over to Georgia Lo, Investor Relations of Cathay General Bancorp.

現在我想把電話轉給 Cathay General Bancorp 的投資者關係部的 Georgia Lo。

Thank you, Anjay, and good afternoon. Here to discuss the financial results today are Mr. Chang Liu, our President and Chief Executive Officer; and Mr. Heng Chen, our Executive Vice President and Chief Financial Officer.

謝謝你，Anjay，下午好。今天在這裡討論財務結果的是我們的總裁兼首席執行官劉暢先生；以及我們的執行副總裁兼首席財務官陳恆先生。

Before we begin, we wish to remind you that the speakers on this call may make forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 concerning future results and events, and that these statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are further described in the company's annual report on Form 10-K for the year ended December 31, 2022, at Item 1A in particular, and in other reports and filings with the Securities and Exchange Commission from time to time. As such, we caution you not to place undue reliance on such forward-looking statements. Any forward-looking statement speaks only as of the date of which it is made, and except as required by law, we undertake no obligation to update or review any forward-looking statements to reflect future circumstances, developments or events or the occurrence of unanticipated events.

在我們開始之前，我們想提醒您，本次電話會議的發言人可能會根據 1995 年《私人證券訴訟改革法案》的適用條款就未來的結果和事件做出前瞻性陳述，並且這些陳述受某些可能導致實際結果出現重大差異的風險和不確定性。這些風險和不確定性在公司截至 2022 年 12 月 31 日的 10-K 表格年度報告中，特別是第 1A 項，以及不時向美國證券交易委員會提交的其他報告和文件中進一步描述。因此，我們提醒您不要過分依賴此類前瞻性陳述。任何前瞻性陳述僅在作出之日起生效，除法律要求外，我們沒有義務更新或審查任何前瞻性陳述以反映未來情況、發展或事件或意外事件的發生事件。

This afternoon, Cathay General Bancorp issued an earnings release outlining its first quarter of 2023 results. To obtain a copy of our earnings release as well as our earnings presentation, please visit our website at www.cathaygeneralbancorp.com. After comments by management today, we will open up this call for questions.

今天下午，Cathay General Bancorp 發布了一份收益報告，概述了其 2023 年第一季度的業績。要獲取我們的收益發布和收益介紹的副本，請訪問我們的網站 www.cathaygeneralbancorp.com。在今天管理層發表意見後，我們將打開此問題電話。

I will now turn the call over to our President and Chief Executive Officer, Mr. Chang Liu.

我現在將電話轉交給我們的總裁兼首席執行官劉暢先生。

Thank you, Georgia, and good afternoon, everyone. Welcome to our 2023 first quarter earnings conference call. This afternoon, we reported a net income of $96 million for the first quarter of 2023, a 1.6% decrease as compared to a net income of $97.6 million for the fourth quarter of 2022. Net income for the first quarter of 2023 included a $3 million pretax write-off or $0.03 per share for Signature Bank corporate securities. Diluted earnings per share decreased 0.8% to $1.32 per share for the first quarter of 2023 compared to $1.33 per share for the fourth quarter of 2022.

謝謝你，Georgia，大家下午好。歡迎來到我們的 2023 年第一季度收益電話會議。今天下午，我們公佈了 2023 年第一季度的淨收入為 9600 萬美元，與 2022 年第四季度的淨收入 9760 萬美元相比下降了 1.6%。2023 年第一季度的淨收入包括 300 萬美元Signature Bank 公司證券的稅前註銷或每股 0.03 美元。與 2022 年第四季度的每股 1.33 美元相比，2023 年第一季度的稀釋後每股收益下降 0.8% 至每股 1.32 美元。

In the first quarter of 2023, our gross loans increased $63.3 million or 1.4% annualized. The increase in loans for the first quarter of 2023 was primarily driven by increases of $123 million or 5.6% annualized in commercial real estate loans, $131 million or 10% annualized in residential mortgage loans, offset by a decrease of $165 million in commercial loans, mostly due to seasonal factors. Due to the uncertain economy, we have reduced our guidance for overall loan growth for 2023 to between 1% to 3% from our previous guidance of 3% to 5%. We continue to monitor our commercial real estate loans.

2023 年第一季度，我們的貸款總額增加了 6330 萬美元，年化增長率為 1.4%。 2023 年第一季度貸款增長的主要原因是商業房地產貸款增加 1.23 億美元或年化 5.6%，住宅抵押貸款增加 1.31 億美元或年化 10%，被商業貸款減少 1.65 億美元所抵消，主要是由於季節性因素。由於經濟不明朗，我們已將 2023 年整體貸款增長的指引從之前的 3% 至 5% 的指引下調至 1% 至 3% 之間。我們繼續監控我們的商業房地產貸款。

Turning to Slide 7 of our earnings presentation. As of March 31, 2023, the average loan to value of our CRE loans was 50%.

轉向我們收益演示的幻燈片 7。截至 2023 年 3 月 31 日，我們 CRE 貸款的平均貸款價值比為 50%。

As of March 31, 2023, our retail property loan portfolio at Slide 8 comprises 22% of our total commercial real estate loan portfolio and 11% of our total loan portfolio. 89% of the $1.97 billion in retail property loans is secured by retail store, building, neighborhood, mixed use or strip centers, and only 10% is secured by shopping centers.

截至 2023 年 3 月 31 日，我們在幻燈片 8 中的零售物業貸款組合占我們商業房地產貸款組合總額的 22% 和我們貸款組合總額的 11%。在 19.7 億美元的零售物業貸款中，89% 由零售商店、建築、社區、混合用途或商業中心提供擔保，只有 10% 由購物中心提供擔保。

At Slide 9, office property loans represent 16% of our total commercial real estate loan portfolio and 8% of the total loan portfolio. Only 38% of the $1.44 billion office property loans is collateralized by pure office buildings. Another 33% of office property loans are collateralized by office, retail stores, office mixed use and medical offices. The remaining 29% in office property loans is collateralized by office condos.

在幻燈片 9 中，辦公物業貸款占我們商業房地產貸款組合總額的 16% 和貸款組合總額的 8%。在 14.4 億美元的辦公物業貸款中，只有 38% 以純辦公樓作為抵押。另外 33% 的寫字樓物業貸款由寫字樓、零售商店、寫字樓混合用途和醫療辦公室抵押。其餘 29% 的辦公物業貸款由辦公公寓抵押。

For the first quarter of 2023, we reported net charge-offs of $4.9 million compared to net charge-offs of $2.5 million in the fourth quarter of 2022. The net charge-offs were primarily due to the $3.8 million collateral write-down of the CRE loan in Northern California, and $2 million write-off of a C&I loan resulted from a bankruptcy filing, offset by a $2.5 million recovery on CRE loan. Our nonaccrual loans were 0.4% of total loans as of March 31, 2023, which increased by $6.9 million to $73.6 million as compared to the end of fourth quarter 2022.

2023 年第一季度，我們報告的淨沖銷額為 490 萬美元，而 2022 年第四季度的淨沖銷額為 250 萬美元。淨沖銷額主要是由於抵押品減記 380 萬美元北加州的 CRE 貸款，以及因申請破產而註銷的 200 萬美元 C&I 貸款，被收回的 CRE 貸款 250 萬美元所抵消。截至 2023 年 3 月 31 日，我們的非應計貸款佔貸款總額的 0.4%，與 2022 年第四季度末相比增加了 690 萬美元，達到 7360 萬美元。

Turning to Slide 12. As of March 31, 2023, classified loans decreased slightly to $240 million from $256 million as of December 31, 2022. And our special mention loans decreased to $251 million from $321 million as of December 31, 2022.

轉到幻燈片 12。截至 2023 年 3 月 31 日，分類貸款從 2022 年 12 月 31 日的 2.56 億美元小幅下降至 2.4 億美元。我們的特別關注貸款從 2022 年 12 月 31 日的 3.21 億美元下降至 2.51 億美元。

We recorded a provision for credit loss of $8.1 million in the first quarter of 2023 as compared to a $1.4 million provision for credit losses in the fourth quarter of 2022.

我們在 2023 年第一季度記錄了 810 萬美元的信貸損失準備金，而 2022 年第四季度的信貸損失準備金為 140 萬美元。

We are pleased that total deposits reduced by $143.6 million or 3.1% annualized during the first quarter of 2023. Total uninsured deposits were $8.7 billion as of March 31, 2023, decreased approximately $0.5 billion from $9.2 billion as of December 31, 2022. Excluding $0.8 billion in collateralized deposits, the uninsured and uncollateralized deposits of $7.9 billion was 42.6% of total deposits as of March 31, 2023.

我們很高興存款總額在 2023 年第一季度減少了 1.436 億美元或年化 3.1%。截至 2023 年 3 月 31 日，未投保存款總額為 87 億美元，比 2022 年 12 月 31 日的 92 億美元減少了約 5 億美元。不包括 0.8 美元億美元的抵押存款，截至 2023 年 3 月 31 日，無保險和無抵押存款為 79 億美元，佔存款總額的 42.6%。

Our unused borrowing capacity from the Federal Home Loan Bank as of March 31, 2023, was $6.5 billion; and unpledged securities at March 31, 2023, was $1.4 billion. These sources of available liquidity were more than 100% of uninsured and uncollateralized deposits as of March 31, 2023.

截至 2023 年 3 月 31 日，我們從聯邦住房貸款銀行未使用的借款能力為 65 億美元；截至 2023 年 3 月 31 日，未抵押證券為 14 億美元。截至 2023 年 3 月 31 日，這些可用流動性來源佔未保險和無抵押存款的 100% 以上。

Total time deposits increased $2.9 billion or 222% annualized during the first quarter of 2023 compared to the fourth quarter of 2022 due to a Chinese New Year promotional campaign in January of 2023. Total money market deposits decreased by $1.4 billion or 119% annualized due primarily to a migration back to CDs or money market deposits and deposit runoff.

由於 2023 年 1 月的農曆新年促銷活動，2023 年第一季度的定期存款總額比 2022 年第四季度增加了 29 億美元或年化 222%。貨幣市場存款總額減少了 14 億美元或年化 119%，主要是由於遷移回 CD 或貨幣市場存款和存款徑流。

On March 31 through April 19, total deposits have increased by $152 million to $18.8 billion (sic) [$18.6 billion] and have almost recovered to the pre-banking crisis level on March 9, 2023. For 2023, the overall deposit growth is expected to range between 2% and 4%.

從 3 月 31 日到 4 月 19 日，總存款增加了 1.52 億美元，達到 188 億美元（原文如此）[186 億美元]，並且幾乎恢復到 2023 年 3 月 9 日銀行業危機前的水平。到 2023 年，整體存款增長預計介於 2% 和 4% 之間。

During the first quarter of 2023, we repurchased 375,000 shares of our common stock at an average cost of $44.20 for $9.3 million, which completed the May 2022 stock repurchase program.

2023 年第一季度，我們以 44.20 美元的平均成本以 930 萬美元回購了 375,000 股普通股，完成了 2022 年 5 月的股票回購計劃。

I will now turn the floor over to our Executive Vice President and Chief Financial Officer, Heng Chen, to discuss the first quarter of 2023 financial results in more detail.

我現在請我們的執行副總裁兼首席財務官 Heng Chen 更詳細地討論 2023 年第一季度的財務業績。

Thank you, Chang, and good afternoon, everyone. For the first quarter of 2023, net income decreased by $1.6 million or 1.6% to $96 million compared to $97.6 million for the fourth quarter of 2022. The decrease was primarily attributable to net interest margin compression due to the increase in the cost of deposits.

謝謝 Chang，大家下午好。與 2022 年第四季度的 9760 萬美元相比，2023 年第一季度的淨收入減少 160 萬美元或 1.6% 至 9600 萬美元。減少的主要原因是存款成本增加導致淨息差壓縮。

Our net interest margin was 3.74% in the first quarter of 2023 as compared to 3.87% for the fourth quarter of 2022. In the first quarter of 2023, interest recoveries and prepaid penalties added 8 basis points to the net interest margin as compared to 1 basis point for the fourth quarter of 2022. With the anticipated Fed rate hike in May and no rate cuts until late Q4, we have revised our net interest margin expectation for 2023 to be between 3.6% to 3.7%.

我們的淨息差在 2023 年第一季度為 3.74%，而 2022 年第四季度為 3.87%。在 2023 年第一季度，利息回收和預付罰款使淨息差增加了 8 個基點，而 1 2022 年第四季度的基點。由於預期美聯儲將在 5 月加息，並且在第四季度末之前不會降息，我們將 2023 年的淨息差預期修正為 3.6% 至 3.7%。

Noninterest income during the first quarter of 2023 increased by $2.2 million to $14.2 million when compared to the fourth quarter of 2022 due to an increase of $5.8 million in gain on equity securities, offset by a $3 million write-off of a corporate bond security.

與 2022 年第四季度相比，2023 年第一季度的非利息收入增加了 220 萬美元，達到 1420 萬美元，這是由於股票證券收益增加了 580 萬美元，被公司債券證券的 300 萬美元註銷所抵消。

Noninterest expenses increased by $2 million or 2.4% to $83.2 million in the first quarter of 2023 when compared to $81.2 million in the fourth quarter of 2022. The increase was primarily due to $3.1 million in higher salaries and bonuses, $1 million in higher amortization of solar tax credit investments, $1.1 million in higher FDIC assessments due to the general FDIC insurance rate increase for 2023, offset by $2.9 million in lower marketing and other operating expenses. We expect core noninterest expense, excluding tax credit and core deposit intangibles and amortization and HSBC integration expenses, to increase 3.5% from 2022 to 2023.

與 2022 年第四季度的 8120 萬美元相比，2023 年第一季度的非利息支出增加了 200 萬美元或 2.4%，達到 8320 萬美元。增加的主要原因是薪水和獎金增加了 310 萬美元，攤銷增加了 100 萬美元太陽能稅收抵免投資，由於 2023 年 FDIC 一般保險費率上調導致 FDIC 評估增加 110 萬美元，被較低的營銷和其他運營費用 290 萬美元所抵消。我們預計，從 2022 年到 2023 年，核心非利息支出（不包括稅收抵免和核心存款無形資產以及攤銷和匯豐整合支出）將增長 3.5%。

The effective tax rate for the first quarter of 2023 was 16.8% as compared to 25.7% for the fourth quarter of 2022. For 2023, we expect an effective tax rate between 16.5% and 17.5%. We expect 2023 solar tax credit investment and amortization of $30 million, including $10 million in Q2 and $13 million in Q3 of 2023.

2023 年第一季度的有效稅率為 16.8%，而 2022 年第四季度為 25.7%。我們預計 2023 年的有效稅率在 16.5% 至 17.5% 之間。我們預計 2023 年太陽能稅收抵免投資和攤銷額為 3000 萬美元，其中 2023 年第二季度為 1000 萬美元，第三季度為 1300 萬美元。

As of March 31, 2023, our Tier 1 leverage capital ratio increased to 10.27% as compared to 10.08% as of December 31, 2022. Our Tier 1 risk-based capital ratio increased to 12.42% from 12.19% as of December 31, 2022, and our total risk-based capital ratio increased to 13.94% from 13.71% as of December 31, 2022.

截至 2023 年 3 月 31 日，我們的一級槓桿資本比率從 2022 年 12 月 31 日的 10.08% 增加到 10.27%。我們的一級風險資本比率從 2022 年 12 月 31 日的 12.19% 增加到 12.42% ，我們的總風險資本比率從 2022 年 12 月 31 日的 13.71% 增加到 13.94%。

Thank you, Heng. We will now proceed to the question-and-answer portion of the call.

謝謝你，恆。我們現在將進入電話的問答部分。

(Operator Instructions) Your first question comes from Brandon King with Truist.

（操作員說明）您的第一個問題來自 Brandon King with Truist。

So I wanted to get a sense of if there's going to be any changes in your deposit strategy given what has gone on recently and as far as how you want to from gather deposits and now you wanted to control your concentrations.

因此，我想了解一下您的存款策略是否會根據最近發生的事情以及您希望如何收集存款以及現在您想控制您的集中度而發生任何變化。

I think, like many other banks, we have been offering products that spread deposits, individual depositors' deposits, through ICS procedures so that they're fully insured. So I mean that's reassuring to our depositors that have concerns. Aside from that, I think, Chang, I mean we're looking at more C&I-related deposit.

我認為，與許多其他銀行一樣，我們一直在提供分散存款的產品，個人儲戶的存款，通過 ICS 程序，以便他們得到充分的保障。所以我的意思是，這讓我們有顧慮的儲戶放心。除此之外，我認為，Chang，我的意思是我們正在尋找更多與 C&I 相關的存款。

Yes. So on that part of it, we'll continue to focus on business deposits and bringing in core and noninterest-bearing deposits. And we certainly have a base of CDs that we continue to use, but the business deposits and leveraging that to our C&I clients and C&I base is also a key part of that.

是的。因此，在這一部分，我們將繼續專注於商業存款，並引入核心和無息存款。我們當然有我們繼續使用的 CD 基礎，但業務存款和利用它給我們的 C&I 客戶和 C&I 基礎也是其中的關鍵部分。

Got it. And I guess now that you noted slower loan growth, you don't need to grow deposits as much, what are you expecting as far as deposit betas from here on now?

知道了。而且我猜現在你注意到貸款增長放緩，你不需要增加存款那麼多，你對現在的存款貝塔有什麼期望？

Well, I think, like many other banks announced this last week, there's been a catch-up in deposit betas. I think that's typically the case when we get to the end of a Fed rate hike cycle, in that more depositors become aware that there's higher rates if you go to the CDs and so forth. But we think there's only one more rate hike, which is going to be in early May. So we think we're well positioned, in that our Chinese New Year promotion locked up over $1.5 billion of our CDs, so they won't be priced till Q1 in 2024. So that should help support our NIM short term. But that's pretty much it, Brandon.

好吧，我認為，就像上周宣布的許多其他銀行一樣，存款貝塔值已經趕上了。我認為當美聯儲加息週期結束時，情況通常就是這樣，因為更多的儲戶會意識到，如果你去 CD 等等，利率會更高。但我們認為只有一次加息，這將是在 5 月初。所以我們認為我們處於有利地位，因為我們的中國新年促銷活動鎖定了超過 15 億美元的 CD，因此它們要到 2024 年第一季度才會定價。因此這應該有助於支持我們的 NIM 短期。但僅此而已，布蘭登。

And just a follow-up, could you remind us what the rate is on most CDs, the average rate for CDs you raised in the first quarter?

作為後續行動，您能否提醒我們大多數 CD 的利率是多少，您在第一季度提高的 CD 的平均利率是多少？

Come again, the CDs for the Chinese New Year promotion or the upcoming maturity?

又來了，過年促銷的CD還是即將成熟的CD？

Yes, the average rate on those.

是的，那些的平均利率。

About 4.20%.

約4.20%。

The next question comes from Matthew Clark with Piper Sandler.

下一個問題來自 Matthew Clark 和 Piper Sandler。

Can you update us on the amount of liquidity available? I didn't see it in your deck or in the press release. As it relates to the capacity you have to borrow relative to your uninsured deposits of $8.7 billion, I see the $252 million of cash, but just wanted to get the latest and greatest at the end of March.

你能告訴我們可用流動資金的數量嗎？我沒有在您的平台或新聞稿中看到它。由於它與你必須藉入的能力相對於你 87 億美元的未保險存款有關，我看到了 2.52 億美元的現金，但只是想在 3 月底獲得最新和最大的現金。

Chang, it was in your remarks. I can cover that. At the Federal Home Loan Bank, we have, as of the end of March, $6.5 billion that was available. And unpledged securities was $1.4 billion. So in our first quarter, we had residential mortgage growth of about $150 million. So that would add to the Federal Home Loan Bank borrowing capacity. So we're slightly over 100% coverage, not counting cash, not counting about $900 million of cash that we have on balance sheet. And we did not borrow from the Fed. And to us, it's really the lender of last resort for us.

Chang，這在你的評論中。我可以覆蓋它。在聯邦住房貸款銀行，截至 3 月底，我們有 65 億美元的可用資金。未抵押證券為 14 億美元。因此，在我們的第一季度，我們的住宅抵押貸款增長了約 1.5 億美元。因此，這將增加聯邦住房貸款銀行的借貸能力。因此，我們的覆蓋率略高於 100%，不包括現金，不包括我們在資產負債表上擁有的約 9 億美元現金。而且我們沒有從美聯儲借錢。對我們來說，它真的是我們的最後貸款人。

Got it. Okay. And then if you happen to have the average margin in the month of March, I'll take it, and the spot rate at the end of March in terms of deposits.

知道了。好的。然後，如果您恰好有 3 月份的平均保證金，我會接受它，以及 3 月底的即期利率，以存款形式計算。

Yes, I have it. Margin in March was a little bit low because it was a 31-day month, and we only had half a month of the Fed increase. So the margin for March was 3.55%. And you wanted the period-end rate for loans and deposits?

對，我有。 3 月份的利潤率有點低，因為這是一個 31 天的月份，我們只有半個月的美聯儲加息。所以 3 月份的利潤率為 3.55%。你想要貸款和存款的期末利率嗎？

No, just deposits is fine.

不，只要存款就可以了。

Oh, yes. Let me try to find it.

哦是的。讓我試著找到它。

So the spot rate for the end of March for NOW accounts, the total is about total is about 2.65%.

所以 3 月底 NOW 賬戶的即期利率，總計約為 2.65%。

Okay. And is that interest bearing? Or is that total deposits, including noninterest?

好的。那是有利息的嗎？或者是總存款，包括非利息？

That's interest bearing.

那就是生息。

Okay, that makes sense. Okay, great. And then on the office CRE exposure that you have, can you give us the reserve that you have set aside for that exposure? And if you have anything in criticize in that portfolio?

好的，這是有道理的。好的，太好了。然後關於您擁有的辦公室 CRE 風險，您能否告訴我們您為該風險預留的儲備金？如果您對該投資組合有任何批評？

Yes. On the reserve, it's our standard CRE reserve which, I'm doing this from memory, is probably about 70 basis points. We don't have much in criticize. And on non-accruals, I think it's only $5 million, that's for office. But I'll get back to you on that. I'll e-mail you on the office non-accrual. It could be even zero.

是的。關於儲備金，這是我們的標準 CRE 儲備金，我是憑記憶做的，大概是 70 個基點。我們沒有太多的批評。對於非應計項目，我認為只有 500 萬美元，用於辦公。但我會就此回复你。我會在非應計辦公室給你發電子郵件。它甚至可能為零。

The next question comes from Gary Tenner with D.A. Davidson.

下一個問題來自 D.A. 的 Gary Tenner。戴維森。

A little bit of a follow-up to Brandon's question regarding some assumptions around the NIM. Just as you think about the NIM -- and you mentioned what your rate assumptions are, so that's helpful. But from a deposit mix perspective, Obviously, a lot of kind of migration within the deposit buckets over the last couple of quarters. What's your base expectation for kind of ongoing shift of deposits to help support the NIM guide that you provided?

關於 Brandon 關於 NIM 的一些假設的問題的一些跟進。正如您考慮 NIM 一樣——您提到了您的利率假設，這很有幫助。但從存款組合的角度來看，很明顯，過去幾個季度存款桶內發生了很多遷移。您對持續轉移存款以幫助支持您提供的 NIM 指南的基本期望是什麼？

We think we're pretty much done. We typically offer 12-month CDs. And so because there's a term structure to it, we think we've got the people that have the quarter that they could afford to lock up for a year.

我們認為我們已經完成了。我們通常提供 12 個月的 CD。因此，因為它有一個期限結構，我們認為我們已經得到了他們有能力鎖定一年的季度的人。

Okay. All right. So basically, your assumption for the NIM is that your deposit mix is relatively unchanged from here.

好的。好的。所以基本上，你對 NIM 的假設是你的存款組合與這里相比相對沒有變化。

Right, right. Well, there was a shift during the quarter. So we're starting off from the March deposit mix, the period-end deposit.

是的是的。好吧，本季度發生了變化。所以我們從 3 月份的存款組合開始，即期末存款。

Got you. Okay, great. And then just in terms of capital, you've completed the prior repurchase program. Last quarter, you had indicated that when you did that, you would be looking for another $125 million or so authorization. Can you kind of sort of update us on the potential for that? Is that still, given the economic concerns, something that management would recommend and the Board would authorized?

明白了好的，太好了。然後就資本而言，你已經完成了之前的回購計劃。上個季度，您曾表示，當您這樣做時，您將尋求另外 1.25 億美元左右的授權。你能給我們介紹一下這方面的潛力嗎？考慮到經濟問題，這仍然是管理層會推薦並且董事會會授權的事情嗎？

It's on hold for now, Gary. We may restart that late in the year. But like many other banks, we want to see how things shake out.

現在暫時擱置，加里。我們可能會在今年晚些時候重新開始。但與許多其他銀行一樣，我們想看看情況如何。

Okay. And then my last question, if I could. Just post the failed banks and everything happening beginning kind of early mid-March, was there any thoughts about building liquidity more than you did? I mean cash is up just a little bit year-end to March 31. Obviously, you had a lot of CDs that you have brought in. So was there some more liquidity on the balance sheet at that point that kind of normalized? Or was that never really a consideration in that kind of mid-March time frame?

好的。然後我的最後一個問題，如果可以的話。只是發布倒閉的銀行和一切從 3 月中旬開始發生的事情，有沒有比你更多的關於建立流動性的想法？我的意思是現金在年底到 3 月 31 日只增加了一點點。顯然，你有很多你帶來的 CD。那麼在那個時候資產負債表上是否有更多的流動性正常化？或者在 3 月中旬的那種時間框架內，這從來都不是真正的考慮因素？

Well, yes, we didn't feel the need to build up a lot of liquidity because one thing about the Federal Home Loan Bank, which should have called by 11:00, but we actually weren't called by 2:00 or 2:30, it was just the Fedwire deadline, and get hundreds of millions of dollars of funding.

嗯，是的，我們覺得沒有必要建立大量的流動性，因為聯邦住房貸款銀行應該在 11:00 之前打電話，但實際上我們並沒有在 2:00 或 2 之前打電話:30，剛好是Fedwire的deadline，拿到幾億美元的資金。

So the main thing was we saw a very small amount of depositors that took their money out, very small, it would be $30 million or $40 million over the first week. So it's not like some other banks where they have billions of dollars go out that week after Silicon Valley Bank fail. Because of that, because we have the $1 billion of cash on balance sheet as well as the Federal Home Loan Bank same-day availability, we didn't feel the need to build up cash.

所以最主要的是我們看到很少的存款人把錢取出來，非常小，第一周會是 3000 萬或 4000 萬美元。所以它不像其他一些銀行那樣，在矽谷銀行倒閉後的那個星期他們有數十億美元流出。正因為如此，因為我們的資產負債表上有 10 億美元的現金以及聯邦住房貸款銀行的當日可用資金，所以我們覺得沒有必要積累現金。

(Operator Instructions) The next question comes from Andrew Terrell with Stephens.

（操作員說明）下一個問題來自 Andrew Terrell 和 Stephens。

If I could continue on some of the margin-related questions, how much in CDs do you have that mature during the second quarter? And what's the rate that those are repricing from? And what's the incremental cost of a new CD today? Is it relatively similar to that for 4.20% or so that was the new year promotional rate?

如果我可以繼續回答一些與保證金相關的問題，那麼第二季度你們有多少 CD 成熟？這些重新定價的利率是多少？今天一張新 CD 的增量成本是多少？是不是和4.20%左右的新年促銷率比較相似？

Yes. So the second quarter is a fairly light maturity. We have about $1.45 billion, that's maturing. The average CD rate is 3.32%. So it's not far off from our average blended CD rate of 3.53%. So that's the number. I think in terms of what the renewing rate is, it depends on the deposit side. So we locked up a lot of CD funding in the fourth quarter and the first quarter. So I think the most eager CD depositors, rate-wise, they've been locked up. So these, hopefully, we can renew at something slightly above the 3.32% range.

是的。所以第二季度是一個相當輕的成熟期。我們有大約 14.5 億美元，正在到期。平均 CD 率為 3.32%。因此，這與我們 3.53% 的平均混合 CD 率相差不遠。這就是數字。我認為就續訂率而言，這取決於存款方面。所以我們在第四季度和第一季度鎖定了很多CD資金。所以我認為最熱切的 CD 存款人，在利率方面，他們已經被鎖定了。因此，希望我們可以在略高於 3.32% 的範圍內更新。

Okay. Got it. I appreciate it. And then also, I just wanted to make sure this is the case. I think last conference call, we talked about a $3.1 million nonaccrual interest recovery that would come through in the first quarter. Did that occur just as we're thinking about kind of the starting point for loan yields going into the second quarter?

好的。知道了。我很感激。然後，我只是想確保情況確實如此。我想在上次電話會議上，我們談到了將在第一季度實現的 310 萬美元的非應計利息回收。這是否發生在我們考慮進入第二季度的貸款收益率的起點時？

Yes. Yes. It happened in January. It's part of our 8 basis NIM pickup from nonaccrual and prepayment fees.

是的。是的。它發生在一月份。這是我們從非應計費用和預付款費用中提取的 8 個基礎 NIM 的一部分。

Okay. Got you. And then last question for me is just on office, around 8% of total loans or so. I see the average outstanding in the slide deck is around $2.9 million, average size. Can you just help us think about the distribution around that average, just specifically to the larger? And I guess, what are the sizes of the largest 2 or 3 office loans in the portfolio? I'm just trying to get a sense of whether you have any true downtown kind of metro type exposure. Just any incremental color there on the largest credits would be helpful.

好的。明白了然後對我來說最後一個問題是關於辦公室，大約佔總貸款的 8% 左右。我看到幻燈片中的平均未償還金額約為 290 萬美元，平均規模。你能幫我們想想圍繞那個平均值的分佈嗎，特別是更大的？我想，投資組合中最大的 2 或 3 筆辦公室貸款的規模是多少？我只是想了解一下您是否有任何真正的市中心類型的地鐵類型曝光。最大學分上的任何增量顏色都會有所幫助。

So our kind of geographic split on sort of central business district is about 19% or so, and the rest of it is what we consider urban and suburban, urban really being not your downtown core. For example, if you use L.A., that would be passing on West L.A., South Bay and those kind of things. And so that's kind of what we tend to focus on. And as far as the largest size of credits, our largest size office is probably, off of memory, between $10 million to $15 million. And that's sort of just on the higher end of it. But as you noted on the deck, it's about $2.9 million.

所以我們在中央商務區的地理劃分大約是 19% 左右，剩下的就是我們認為的城市和郊區，城市真的不是你的市中心。例如，如果您使用 L.A.，那將經過 West L.A.、South Bay 和那些地方。所以這就是我們傾向於關注的事情。至於最大的信貸規模，我們最大的辦公室可能在 1000 萬到 1500 萬美元之間。這只是在它的高端。但正如你在甲板上指出的那樣，它大約是 290 萬美元。

Yes. Okay. So even at the largest end of the spectrum, it's still pretty small and pretty granular relative to...

是的。好的。因此，即使在頻譜的最大端，相對於...

Right, right, right.

對，對，對。

The next question comes from Chris McGratty with KBW.

下一個問題來自 KBW 的 Chris McGratty。

This is Nick Moutafakis on for Chris McGratty. So most of my questions have already been hit on, but maybe we can just touch on the provision. C&I ramped up this quarter. Kind of at a run rate going forward, should we expect it to go higher from here? And maybe you can speak to where you see reserve level is headed as you move through 2023.

這是克里斯·麥格拉蒂的尼克·穆塔法基斯。所以我的大部分問題都已經被解決了，但也許我們可以只談一下條款。本季度 C&I 增長。有點像未來的運行速度，我們應該期望它從這裡走高嗎？也許你可以談談你看到的儲備水平在 2023 年走向何方。

Yes. So during this quarter, we had that one larger CRE charge-off. But my crystal ball is not perfect, but we hope we don't get large charge-offs again in the second quarter. So if loan growth is, let's say, 2% and mostly residential mortgage, you wouldn't need very much in the way of reserves. We reserve residential mortgage at about 75 basis points.

是的。因此，在本季度，我們進行了一次更大的 CRE 沖銷。但我的水晶球並不完美，但我們希望我們不會在第二節再次獲得大額罰球。因此，如果貸款增長，比方說，2%，而且主要是住宅抵押貸款，那麼你就不需要太多準備金。我們將住宅抵押貸款保留在大約 75 個基點。

And then lastly, our reserve for unfunded went up by about $4.5 million this quarter, very seasonal, our line usage is lower at the end of March. So we'll see a shift more of that onto the on balance sheet allowance for loan losses in the second quarter. But the trend, I think it should be lower than the first quarter. You can see our substandard went down a little bit this quarter.

最後，本季度我們的無資金準備金增加了約 450 萬美元，這是非常季節性的，我們的線路使用率在 3 月底較低。因此，我們將在第二季度看到更多的貸款損失轉移到資產負債表上的貸款損失準備金上。但是這個趨勢，我覺得應該會低於一季度。您可以看到本季度我們的不合標準有所下降。

And then maybe just switching gears on the guide. I guess, do you guys have a deposit beta assumption for your guidance for the NIM?

然後也許只是在指南上切換齒輪。我想，你們對 NIM 的指導有存款貝塔假設嗎？

We think it's going to be closer to 40%. I mean we'll certainly have a good idea in June when the Fed's done, and we tally up everything from day 1. But that's what we're thinking.

我們認為它會接近 40%。我的意思是我們肯定會在 6 月美聯儲完成工作時有一個好主意，我們從第一天開始計算所有內容。但這就是我們的想法。

For interest bearing?

為了利息？

Yes, interest. Yes, that's total. So for CDs, that will be much higher. Money market would be kind of in the middle. And for like savings accounts, we didn't increase the rate at all throughout.

對，興趣。是的，這就是全部。所以對於 CD，這會高得多。貨幣市場將處於中間位置。對於類似的儲蓄賬戶，我們始終沒有提高利率。

(Operator Instructions) the next question is a follow-up from Matthew Clark with Piper Sandler.

（操作員說明）下一個問題是 Matthew Clark 和 Piper Sandler 的後續問題。

Just wanted to close the loop on the tax credit amortization. You gave the $30 million for the year for solar, but can you update us on the low-income housing? I think you were looking for $40 million for the year.

只是想結束稅收抵免攤銷的循環。你當年為太陽能投入了 3000 萬美元，但你能告訴我們關於低收入住房的最新情況嗎？我想你今年的目標是 4000 萬美元。

Yes. That's still the same, Matthew, $10 million a quarter.

是的。那還是一樣，馬修，每季度 1000 萬美元。

Thank you for your participation. I will now turn the call back over to Cathay General Bancorp's management for closing remarks.

感謝您的參與。我現在將把電話轉回給 Cathay General Bancorp 的管理層作結束語。

I want to thank everyone for joining us on our call, and we look forward to speaking with you on our next quarterly earnings release call.

我要感謝大家加入我們的電話會議，我們期待在下一個季度收益發布電話會議上與您交談。

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.

女士們，先生們，感謝你們參加今天的會議。介紹到此結束。您現在可以斷開連接。再會。