Cathay General Bancorp (CATY) 2023 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Cathay General Bancorp's Third Quarter of 2023 Earnings Conference Call. My name is Rocco, and I will be your coordinator for today.

女士們、先生們，下午好，歡迎參加國泰綜合銀行 2023 年第三季財報電話會議。我叫 Rocco，今天我將擔任你們的協調員。

(Operator Instructions)

（操作員說明）

Today's call is being recorded and will be available for replay at www.cathaygeneralbancorp.com. I would now like to turn the call over to Georgia Lo, Investor Relations of Cathay General Bancorp. Please go ahead.

今天的電話會議正在錄音，並將在 www.cathaygeneralbancorp.com 上重播。我現在想把電話轉給國泰綜合銀行投資者關係部的 Georgia Lo。請繼續。

Thank you, Rocco, and good afternoon. Here to discuss the 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，羅科，下午好。今天在這裡討論結果的是我們的總裁兼執行長劉暢先生；以及我們的執行副總裁兼財務長陳恆先生。

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 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.

在我們開始之前，我們想提醒您，本次電話會議的發言者可能會根據 1995 年《私人證券訴訟改革法案》的適用條款做出有關未來結果和事件的前瞻性陳述，並且這些陳述受某些風險和不確定性可能導致實際結果有重大差異。這些風險和不確定性在公司截至 2022 年 12 月 31 日的 10-K 年度報告（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行了進一步描述。

As such, we caution you not to place undue reliance on such forward-looking statements. Any forward-looking statements speaks only as of the date on 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.

因此，我們提醒您不要過度依賴此類前瞻性陳述。任何前瞻性陳述僅代表截至其作出之日的情況，除非法律要求，否則我們不承擔更新或審查任何前瞻性陳述以反映未來情況、事態發展或事件或意外情況發生的義務。事件。

This afternoon, Cathay General Bancorp issued an earnings release outlining its third quarter 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，國泰綜合銀行發布了一份財報，概述了 2023 年第三季的業績。如需我們的收益發布以及收益演示的副本，請訪問我們的網站：www.cathaygeneralbancorp.com。在今天管理層發表評論後，我們將開始本次提問。

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

我現在將電話轉給我們的總裁兼執行長劉暢先生。

Thank you, Georgia, and good afternoon, everyone. Welcome to our 2023 3rd quarter earnings conference call. This afternoon, we reported net income of $82.4 million for the third quarter of 2023, an 11.6% decrease as compared to a net income of $93.2 million for the second quarter of 2023. Diluted earnings per share decreased 11.8% to $1.13 per share for the third quarter of 2023 compared to $1.28 per share for the second quarter of 2023.

謝謝喬治亞，大家下午好。歡迎參加我們的 2023 年第三季財報電話會議。今天下午，我們報告 2023 年第三季淨利為 8,240 萬美元，較 2023 年第二季淨利 9,320 萬美元下降 11.6%。稀釋每股收益下降 11.8%，至每股 1.13 美元。2023 年第三季度每股收益為1.28 美元，而2023 年第二季每股收益為1.28 美元。

In the third quarter of 2023, our gross loans increased $71 million or 1.6% annualized, primarily driven by increases of $218 million or 9.9% annualized in commercial real estate loans, and $143 million or 10.9% annualized in residential mortgage loans, offset by a decrease of $227 million or 27.4% annualized in commercial loans. The solar loan growth during the third quarter resulted in part from paydown of several large commercial loans originated in the second quarter of 2023. We continue to monitor our commercial real estate loans.

2023 年第三季度，我們的總貸款增加了7,100 萬美元，年化成長率為1.6%，主要是由於商業房地產貸款增加了2.18 億美元，年化成長率為9.9%，住宅抵押貸款增加了1.43億美元，年化成長率為10.9%，但被商業貸款年化減少 2.27 億美元，即 27.4%。第三季太陽能貸款的成長部分歸因於 2023 年第二季發放的幾筆大型商業貸款的償還。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 September 30, 2023, the average loan-to-value of our commercial real estate loans was 50%. As of September 30, 2023, our retail property loan portfolio, at Slide 8, comprises 23% of our total commercial real estate loan portfolio or 11% of our total loan portfolio. 89% of the $2.2 billion in retail loans is secured by retail store, building, neighborhood, mixed use or strip centers and only 10% secured by shopping centers.

轉向我們收益簡報的投影片 7。截至2023年9月30日，我們商業房地產貸款的平均貸款價值比為50%。截至 2023 年 9 月 30 日，我們的零售房地產貸款組合（投影片 8）占我們商業房地產貸款組合總額的 23% 或貸款組合總額的 11%。在 22 億美元的零售貸款中，89% 由零售商店、建築、社區、混合用途或地帶中心擔保，只有 10% 由購物中心擔保。

At Slide 9, office property loans represent 16% of our total commercial real estate loan portfolio or 8% of total loan portfolio. Only 34% of the $1.5 billion in office property loans are collateralized by pure office buildings and only 4% of the office property loans are in central business districts. Another 25% of office property loans are collateralized by office retail stores, office mixed use and medical offices. The remaining 28% of office loans are collotalized by office condos.

在投影片 9 中，辦公物業貸款占我們商業房地產貸款組合總額的 16% 或貸款組合總額的 8%。在 15 億美元的辦公大樓房產貸款中，只有 34% 由純粹的辦公室作為抵押，並且只有 4% 的辦公室房產貸款位於中央商務區。另外 25% 的辦公室物業貸款由辦公室零售店、辦公室混合用途和醫療辦公室提供抵押。其餘 28% 的辦公室貸款由辦公室公寓抵押。

For the third quarter of 2023, we reported net charge-offs of $6.6 million, of which, $4.3 million have been reserved for in prior quarters compared to net charge-offs of $2 million in the second quarter of 2023. Our nonaccrual loans were 0.41% of total loans as of September 30, 2023, which increased by $8.3 million to $77.3 million as compared to the end of the second quarter of 2023.

2023 年第三季度，我們報告的淨沖銷額為660 萬美元，其中430 萬美元已保留給前幾季度，而2023 年第二季度的淨沖銷額為200 萬美元。我們的非應計貸款為0.41截至 2023 年 9 月 30 日，佔貸款總額的百分比，較 2023 年第二季末增加 830 萬美元，達到 7,730 萬美元。

Turning to Slide 12. As of September 30, 2023, classified loans increased slightly to $202 million from $193 million as of June 30, 2023, and our special mention loans also increased slightly to $278 million from $260 million as of June 30, 2023.

轉向幻燈片12。截至2023 年9 月30 日，分類貸款從截至2023 年6 月30 日的1.93 億美元小幅增加至2.02 億美元，我們的特別關注貸款也從截至2023 年6 月30 日的2.6億美元小幅增加至2.78 億美元。

We recorded a provision for credit loss of $7 million in the third quarter of 2023 as compared to a $9.2 million in provision for credit losses for the second quarter of 2023. We are pleased that total deposits increased by $539 million or 11.6% annualized during the third quarter of 2023. As a result, we were able to reduce our borrowings from Federal Home Loan Bank by $800 million during the quarter to $15 million as of September 30, 2023.

我們在2023 年第三季的信貸損失準備金為700 萬美元，而2023 年第二季的信貸損失準備金為920 萬美元。我們很高興看到存款總額在2023 年第三季增加了5.39 億美元，年化成長率為11.6%。2023 年第三季。因此，截至 2023 年 9 月 30 日，本季我們從聯邦房屋貸款銀行的借款減少了 8 億美元，達到 1,500 萬美元。

Total uninsured deposits were $9 billion, but excluding $0.8 billion in collateralized deposits, the uninsured and uncollateralized deposits were reduced to $8.2 billion or 41.7% of total deposits as of September 30, 2023. Our unused borrowing capacity from the Federal Home Loan Bank was $7.2 billion, and on-play securities was $1.4 billion. These sources of available liquidity were more than 100% of uninsured and uncollateralized deposits as of September 30, 2023.

截至2023 年9 月30 日，無保險存款總額為90 億美元，但不包括8 億美元的抵押存款，無保險和無抵押存款減少至82 億美元，佔存款總額的41.7%。我們從聯邦住房貸款銀行未使用的借款能力為7.2 美元億美元，現場證券為 14 億美元。截至 2023 年 9 月 30 日，這些可用流動性來源超過 100% 為無保險和無抵押存款。

Total time deposits increased $237 million or 31.2% annualized during the third quarter of 2023 compared to the second quarter of 2023. Total core deposits increased by $301 million or 10.5% annualized, primarily due to organic growth and seasonal increases.

與2023 年第二季相比，2023 年第三季定期存款總額增加了2.37 億美元，年化成長率為31.2%。核心存款總額增加了3.01 億美元，年化成長率為10.5%，這主要是由於有機增長和季節性增長。

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

我現在將請我們的執行副總裁兼財務長陳恆先生更詳細地討論 2023 年第三季的財務表現。

Thank you, Chang, and good afternoon, everyone. For the third quarter of 2023, net income decreased by $10.8 million or 11.6% to $82.4 million compared to $93.2 million for the second quarter of 2023, primarily due to a $6.2 million unrealized loss on equity securities or $0.06 per share in the third quarter of 2023 as compared to a $10.7 million unrealized gain on equity securities or $0.10 per share in the second quarter of 2023. Our net interest margin was 3.38% in the third quarter of 2023 as compared to 3.44% for the second quarter of 2023.

謝謝張老師，大家下午好。 2023 年第三季的淨利為8,240 萬美元，下降1,080 萬美元，即11.6%，而2023 年第二季的淨利為9,320 萬美元，主要是由於股本證券未實現虧損620 萬美元，即每股0.06 美元。相較之下，2023 年第二季股本證券未實現收益為1,070 萬美元，即每股0.10 美元。2023 年第三季我們的淨息差為3.38%，而2023 年第二季度為3.44%。

In the third quarter of 2023, interest recoveries and prepayment penalties added 6 basis points to the net interest margin as compared to 2 basis points for the second quarter of 2023. We have revised our net interest margin expectations for 2023 to be between 3.45% to 3.50%. Noninterest income during the third quarter of 2023 decreased by $15.3 million to $7.8 million when compared to $23.1 million in the second quarter of 2023. The decrease was primarily due to a $16.9 million decrease in unrealized gains on equity securities offset in part by a $1.5 million increase in commissions from wealth management when compared to the second quarter of 2023.

2023 年第三季度，利息回收和提前還款罰款使淨利差增加6 個基點，而2023 年第二季度為2 個基點。我們將2023 年淨息差預期修正為3.45% 至3.45% 之間. 3.50%。 2023 年第三季的非利息收入減少1,530 萬美元，至780 萬美元，而2023 年第二季為2,310 萬美元。這一下降主要是由於股本證券未實現收益減少1,690 萬美元，部分被150 萬美元抵銷。與 2023 年第二季相比，財富管理佣金增加。

Noninterest expense increased by $1.2 million or 1.2% to $94 million in the third quarter of 2023 when compared to $92.8 million in the second quarter of 2023. The increase was primarily due to $1.7 million in higher salaries and benefits and $1.4 million in higher amortization of solar tax credit investments, offset by $1 million in lower professional expenses. As a result of expenses incurred in 2023 to strengthen the bank's information security infrastructure and enterprise risk management and from higher FPIC insurance premiums, we expect core noninterest expense, excluding tax credit and core deposit intangible amortizations in OREO expense to increase between 8.5% to 9.5% from 2022 to 2023. This excludes the impact of any special FDIC assessment for bank failures expected to be finalized during the fourth quarter of 2023.

2023 年第三季的非利息支出增加了120 萬美元，即1.2%，達到9,400 萬美元，而2023 年第二季的非利息支出為9,280 萬美元。這一增長主要是由於工資和福利增加了170 萬美元，以及攤銷費用增加了140 萬美元。太陽能稅收抵免投資被 100 萬美元的專業費用降低所抵消。由於2023 年為加強銀行資訊安全基礎設施和企業風險管理而產生的費用以及較高的FPIC 保險費，我們預計核心非利息費用（不包括稅收抵免和OREO 費用中的核心存款無形攤銷）將增加8.5% 至9.5% 2022 年至 2023 年期間的百分比。這不包括 FDIC 對銀行倒閉的任何特別評估的影響，預計將於 2023 年第四季完成。

During the first 9 months, approximately $3 million in nonrecurring professional expenses related to information of security, enterprise risk management and internal control processes were incurred. In addition, we are taking a hard look in our other expenses during the fourth quarter of 2023 and to reduce the rate of noninterest expense growth in 2024. The effective tax rate for the third quarter of 2023 was 11% as compared to 9.2% for the second quarter of 2023.

前 9 個月，與安全資訊、企業風險管理和內部控制流程相關的非經常性專業費用約為 300 萬美元。此外，我們正在認真審視 2023 年第四季的其他支出，並降低 2024 年非利息支出成長率。2023 年第三季的有效稅率為 11%，而 2024 年第三季的有效稅率為 9.2%。 2023 年第二季。

For full year 2023, we expect an effective tax rate of between 12.5% and 13%. We expect solar tax credit investment amortization of $12 million in Q4 of 2023. As of September 30, 2023, our Tier 1 leverage capital ratio decreased to 10.44% as compared to 10.45% as of June 30, 2023. Our Tier 1 risk-based capital ratio increased to 12.7% from 12.38% as of June 30, 2023, and our total risk-based capital ratio increased to 14.21% from 13.88% as of June 30, 2023.

2023 年全年，我們預計有效稅率在 12.5% 至 13% 之間。我們預計2023 年第四季太陽能稅收抵免投資攤銷為1,200 萬美元。截至2023 年9 月30 日，我們的一級槓桿資本比率從截至2023 年6 月30 日的10.45% 下降至10.44%。我們的第一級創投比率截至2023年6月30日，我們的資本比率從12.38%增加到12.7%，總創投比率從截至2023年6月30日的13.88%增加至14.21%。

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會議的問答部分。

(Operator Instructions)

（操作員說明）

Your first question today comes from Matthew Clark at Piper Sandler.

你們今天的第一個問題來自 Piper Sandler 的 Matthew Clark。

Just a couple of questions around the margin. Did you have any -- I guess, I was looking to quantify the prepay fees and any recoveries in the loan yield. It looked like the loan yield was up a little more, up about 20 basis points this quarter. Just wondering if anything was kind of elevated on that front?

只是有幾個問題。你有嗎——我想，我正在尋找量化預付款費用和貸款收益率的任何回收。看起來貸款收益率有所上升，本季上升了約 20 個基點。只是想知道這方面是否有什麼提升？

Well, we had about $2 million of interest recoveries. As I mentioned, it was 6 basis points of NIM, but the rest of it would be just improved pricing for loans.

嗯，我們收回了大約 200 萬美元的利息。正如我所提到的，淨利差為 6 個基點，但其餘部分只是提高了貸款定價。

Got it. And I think you had about $1 million last quarter. Is that right?

知道了。我認為上個季度你有大約 100 萬美元。是對的嗎？

A little less than that. Yes.

比那少一點。是的。

Okay. I can come back to that later. And then if you have the spot rate on deposits, interest-bearing or total and the average margin in the month of September?

好的。我可以稍後再回來討論這個問題。那麼，您是否有 9 月存款、計息或總額的即期利率以及平均保證金？

Yes. Let me go through -- so the spot rate at September 30 on total interest-bearing deposits at the end of the month was 3.28%. What was the next part of your question, Matt?

是的。讓我來介紹一下－9月30日月末計息存款總額的即期利率是3.28%。馬特，你的問題的下一部分是什麼？

If you had the average margin in September, I'd take it.

如果你有九月的平均利潤，我會接受。

Yes. The average -- it's a little bit noisy because we had interest recoveries were out the quarter, but it was 3.42%.

是的。平均利率有點吵雜，因為我們在本季度收回了利息，但它是 3.42%。

Okay. Understood.

好的。明白了。

For the month, September, yes.

對於這個月，九月，是的。

Okay. Great. And then just maybe 1 more housekeeping item, and then I'll get back in the queue. The low-income housing amortization for the year, I know you gave solar, but is it still about $41 million?

好的。偉大的。然後也許再多一件家事用品，然後我就會回到隊列中。當年的低收入住房攤銷，我知道你給了太陽能，但還是大約4100萬美元嗎？

Let's see, yes, yes.

讓我們看看，是的，是的。

Our next question today comes from Gary Tenner at D.A. Davidson.

今天我們的下一個問題來自 D.A. 的加里·坦納 (Gary Tenner)。戴維森。

First, I had a question on expenses. I may have misheard what you were saying in terms of the expected core expense run rate, I heard 8.5% to 9.5%, which I thought you were saying for 2023, but you said it excluded any potential, I guess, special assessment. So I was confused if you're talking about '23 or '24?

首先，我有一個關於費用的問題。我可能聽錯了你所說的預期核心費用運行率，我聽到的是8.5% 到9.5%，我以為你說的是 2023 年，但你說它排除了任何潛在的、我猜的特殊評估。所以我很困惑你是在談論「23」還是「24」？

We're talking about '23. As you know, there is a proposal that's not final. And under GAAP, whenever finalized, banks are expected to accrue it.

我們正在談論'23。如您所知，有一項提案還不是最終的。根據公認會計原則，一旦最終確定，銀行就應該提列它。

All right. I just wanted to clarify that. In terms of the loan pipeline at your guidance still looks like it suggests still a solid level of loan growth for the fourth quarter. I just wonder if you could give any kind of updates in terms of kind of where the pipeline strength is coming from, areas that you'd expect loan growth to kind of continue through the fourth quarter?

好的。我只是想澄清這一點。就您指導下的貸款管道而言，看起來仍然表明第四季度的貸款成長仍處於穩健水平。我只是想知道您是否可以就通路實力的來源提供任何更新，您預計貸款成長將持續到第四季度的領域？

Sure, Gary. I think we're still seeing some strength surprisingly in the residential mortgage market. That pipeline is holding up pretty well, and about 90% of that organic pipeline is about purchases actually. So that kind of makes sense given today's market. So the activity there is still fairly strong across the states that we're in. Commercial real estate is -- that's definitely slowing down, but we're seeing continued activity both from -- mostly from our current client base. Some new relationships that we're betting very carefully.

當然，加里。我認為我們仍然在住宅抵押貸款市場上看到了一些令人驚訝的強勁勢頭。該管道保持得相當不錯，大約 90% 的有機管道實際上與購買有關。因此，考慮到當今的市場，這是有道理的。因此，我們所在的各州的活動仍然相當強勁。商業房地產確實在放緩，但我們看到主要來自我們當前客戶群的持續活動。我們非常謹慎地押注於一些新的關係。

And then on the C&I side, we're looking for kind of really supporting our clients and looking at their credit metrics and make sure they're prepared going forward into 2024. And not a lot of new activity coming out of that or new, new business coming in. But to the extent that we find some good prospects, we're definitely continuing on with that path.

然後在 C&I 方面，我們正在尋求真正支持我們的客戶並查看他們的信用指標，並確保他們為進入 2024 年做好準備。並且不會產生很多新活動或新活動，新業務進來。但只要我們發現了一些良好的前景，我們肯定會繼續沿著這條路走下去。

I appreciate that. And just one last question. I think in the prepared remarks, there was a note of some larger commercial loans that were originated in the second quarter, paid off during the third quarter, were those anticipated payoffs? Correct me, if you talked about it previously, and I don't recall.

我很感激。還有最後一個問題。我認為在準備好的發言中，有一個註釋是一些較大的商業貸款，這些貸款是在第二季度發放的，在第三季度還清的，這些是預期的回報嗎？糾正我，如果你以前談過，但我不記得了。

They were commercial lines of credit that were drawn down during the second quarter, and we got some pay downs, not payoffs, but paydowns during the third quarter.

它們是第二季提取的商業信貸額度，我們得到了一些付款，不是支付，而是第三季的付款。

Yes. And then vulnerable borrowers borrowed again here in October.

是的。然後，脆弱的借款人在 10 月再次在這裡借款。

And our next question comes from Brandon King at Truist Securities.

我們的下一個問題來自 Truist Securities 的 Brandon King。

So just wanted to get how you're thinking about deposit growth near term in the fourth quarter? And also, could you give some context around the growth you saw in DDA? And how you expect DDA trends or noninterest bearing deposit trends to play out in the fourth quarter?

所以只是想了解您對第四季近期存款成長的看法？另外，您能否介紹一下您在 DDA 中看到的成長情況？您預計第四季 DDA 趨勢或無利息存款趨勢將如何發揮？

Yes, we were pleasantly surprised at the amount of deposit growth in the third quarter. There may be -- I mean, there's a small amount that was temporary. We had a customer that deposit that was going to some money and pending a real estate purchase and that deposit. It's a money market that will go out in October, late October. But I think the DDA, it's -- there's nothing special there.

是的，我們對第三季的存款成長量感到驚訝。可能有——我的意思是，有一小部分是暫時的。我們有一位客戶存了一些錢，等待購買房地產和這筆押金。這是一個10月、10月底就會出來的貨幣市場。但我認為 DDA 沒有什麼特別的。

It's really a collective effort, I think, of our kind of network, retail network and they know that bringing in CDs and retaining them that's part of the job. But really, the key is driving the DDA deposits, and we're getting hit enough as it is on the cost of funds on the CDs, even the money markets, but the DDA growth is really where we need to concentrate and in order to offset some of that cost increase just on our funds.

我認為，這確實是我們這種網路、零售網路的集體努力，他們知道引入 CD 並保留它們是工作的一部分。但實際上，關鍵是推動 DDA 存款，我們受到的打擊已經夠多了，因為 CD 的資金成本，甚至是貨幣市場，但 DDA 的增長確實是我們需要集中精力的地方，以便僅用我們的資金抵消部分成本增加。

Got it. And for that outflow, how much of that are you expecting to outflow in the fourth quarter?

知道了。對於資金流出，您預計第四季流出多少？

Oh, that one, it was $65 million.

噢，那個，是 6500 萬美元。

Okay. I see that was money market?

好的。我看到那是貨幣市場？

Yes. It was a money market. Yes. It's a long-time deposit. Yes.

是的。這是一個貨幣市場。是的。這是長期存款。是的。

Okay. Okay. And then going back to the question on loan yields. How are you expecting that to trend near term? Are you expecting kind of a similar sort of increase in the fourth quarter? What are your expectations?

好的。好的。然後回到貸款收益率的問題。您預期近期趨勢如何？您預計第四季會有類似的成長嗎？您的期望是什麼？

We think so. I mean, one thing that we see is in residential mortgage, that's very large. It's -- our residential mortgage, it's almost $6 billion. And it's been -- for each of the 3 quarters in 2023, that accrual loan that has gone up 20 basis points every quarter. So in the third quarter, residential mortgages was 4.96%. We're banking a couple of hundred million of loans every quarter, $250 million or so in the -- almost 7% range. So that pulls it up, and we continue to see prepayments from our 31 and 51 arms. They tend to pay off when they get -- when they finish the initial fixed rate period. And then -- I mean, on CRE, we're trying to get in the 7s.

我們認為是這樣。我的意思是，我們看到的一件事是住宅抵押貸款，規模非常大。我們的住宅抵押貸款，將近 60 億美元。在 2023 年的三個季度中，應計貸款每季增加了 20 個基點。因此第三季住宅抵押貸款率為4.96%。我們每季都會處理數億筆貸款，大約 2.5 億美元，幾乎在 7% 的範圍內。因此，這將其拉高，我們繼續看到來自 31 和 51 部門的預付款。當他們完成最初的固定利率期時，他們往往會得到回報。然後——我的意思是，在 CRE 上，我們正​​在努力達到 7 分。

Right. CRE, we're pricing them at about 250 plus if we can get them over the 5-year with a 3-year. So that's kind of the rate range that we're looking at. We're still seeing some activity, some purchases, some refinance from floating rate, but -- so we're seeing some steady.

正確的。 CRE，如果我們能在 5 年期和 3 年期中獲得它們，我們的定價約為 250 以上。這就是我們正在考慮的費率範圍。我們仍然看到一些活動，一些購買，一些浮動利率再融資，但是 - 所以我們看到一些穩定。

Got it. Got it. And then just to kind of sum up, you expect kind of a similar increase in the fourth quarter. Is that -- did I hear that correctly?

知道了。知道了。總而言之，您預計第四季度會有類似的成長。那是——我沒聽錯嗎？

Probably pretty close to what we had in the third quarter. Yes. Yes.

可能與第三季的情況非常接近。是的。是的。

And our next question today comes from Andrew Terrell with Stephens.

今天我們的下一個問題來自安德魯·特雷爾和史蒂芬斯。

Just maybe just square out the discussion on the loan yields, up 20 basis points this quarter, but that did include the impacts from the interest recovery or prepayment that was 2 basis points to the NIM last quarter, 6 basis points this quarter. I guess, are you assuming that prepay or interest recovery continues at 6 basis points to the margin whenever you talk about loan yields going up a similar amount in 4Q? Or should that normalize lower going forward?

也許只是平息了關於貸款收益率的討論，本季度上升了 20 個基點，但這確實包括利息回收或預付款的影響，上季度淨息差為 2 個基點，本季度為 6 個基點。我想，每當您談到第四季度貸款收益率上漲類似幅度時，您是否都假設預付款或利息回收繼續以 6 個基點的幅度增長？或者未來應該正常化走低嗎？

Yes, it should. We don't see any big nonaccruals paying off. So you just subtract maybe $1.5 million from it, yes, for the onetime nonaccruals.

是的，應該的。我們沒有看到任何大型的非應計項目獲得回報。所以你只需從中減去 150 萬美元，是的，一次性非應計費用。

Understood. Okay. I appreciate it. And then on credit quality, I just ran asked around the construction nonaccruals went up from 0 to, I think, right around $17 million or so. Can you just talk about the underlying credit or credits that drove that increase this quarter? And then similar question for the OREO addition this quarter. It looks like about $10 million addition to the OREO asset?

明白了。好的。我很感激。然後關於信貸質量，我剛剛詢問了建築非應計費用從 0 上升到我認為大約 1700 萬美元左右。您能否談談推動本季成長的基本信用或信用？本季奧利奧添加也有類似的問題。看起來奧利奧資產增加了約1000萬美元？

Sure. On the construction portfolio side, I can talk about that a little bit. One of them was a Southern California Inland Empire hospitality. It was an existing asset with a reflag reposition with some significant renovation to the property. We're at plus 90% to completion. There's some -- as a result of some significant delays, there's a partner dispute between the partnership. We're pretty comfortable with the asset. It's got a pretty low LTV. It's well located. It's got a good operating history. Unfortunately, that partnership dispute has led us to where we are.

當然。在建築組合方面，我可以稍微談談。其中之一是南加州內陸帝國的熱情好客。這是一項現有資產，經過重新定位，並對財產進行了一些重大整修。我們已完成 90% 以上。有一些 - 由於一些重大延誤，合夥企業之間存在合夥人糾紛。我們對這項資產非常滿意。它的 LTV 相當低。它的位置很好。它有良好的營運歷史。不幸的是，這場合作糾紛讓我們陷入了現在的境地。

Yes, that's because that loan between 90 days past maturity. That's why we had to put on nonaccrual.

是的，那是因為該貸款到期日為 90 天。這就是為什麼我們必須採用非應計利息。

The other is a NorCal office building. We've got a buyer that's been identified and that we've got some reserves that's set against it, and that 1 was also sort of a reposition play there as well.

另一棟是北加州的一棟辦公大樓。我們已經確定了一個買家，我們有一些準備金來對抗它，而且 1 也是一種重新定位遊戲。

And then the OREO, it's a single-family house in Pacific Palisades. It came out amount of nonaccrual.

然後是奧利奧 (OREO)，它是太平洋帕利塞德 (Pacific Palisades) 的一棟單戶住宅。結果為非應計金額。

Okay. Understood. I appreciate all the color there. And then if I could sneak 1 more in. The wealth management fee income this quarter was really strong. Can you just talk about what drove the list this quarter? And then is that low $5 million a quarter number kind of a good run rate to think about the wealth management fees moving forward?

好的。明白了。我欣賞那裡的所有顏色。那如果我能再偷偷進去一點的話，這個季度的理財費收入真的很給力。您能談談本季榜單的推動因素嗎？那麼，考慮到未來的財富管理費用，每季 500 萬美元的低運行率是否是一個良好的運作率？

They're still -- I'll take a stab at it. There's still kind of on budget for this year. I think the first half of the year, Andrew, they were kind of behind budget. So effectively, it was kind of the third quarter catch-up on some of their business and volume and their backlog of the pipeline. And so I think that's really where we saw that pick up.

他們仍然——我會嘗試一下。今年的預算仍然有限。我認為今年上半年，安德魯，他們有點落後於預算。因此，這實際上是第三季對他們的一些業務和數量以及管道積壓的追趕。所以我認為這確實是我們看到成長的地方。

Yes. I think see volume there's a lot of deals that close in the third and fourth quarter.

是的。我認為從成交量來看，有很多交易在第三和第四季完成。

Okay. So maybe a fair way to think about it. Is this more on an annual basis around like an $18 million number?

好的。所以也許是一個公平的思考方式。每年這個數字大約是 1800 萬美元嗎？

Yes, yes. Yes.

是的是的。是的。

(Operator Instructions)

（操作員說明）

Today's next question comes from Chris McGratty at KBW.

今天的下一個問題來自 KBW 的 Chris McGratty。

This is Nick Moutafakis on for Chris. Maybe just a higher level just given where capital levels are at and your stock price, any appetite at all for a buyback in the near term in the next 12 months or so?

我是尼克·穆塔法克斯 (Nick Moutafakis) 替克里斯發言。考慮到資本水準和您的股價，也許只是更高的水平，在未來 12 個月左右的短期內是否有任何回購意願？

Absolutely. We talked about it briefly in our second quarter conference call, the approval process takes a little bit longer than compared to the past. But in the next few months, we'll get going on that. And once it's approved by the Fed, we'll put out a press release. But it's -- the way I get it, it's capital builds up over there. So we can catch on with buybacks when things are more certain.

絕對地。我們在第二季的電話會議上簡要討論過這一點，審批流程比過去要長一些。但在接下來的幾個月裡，我們將繼續這樣做。一旦獲得美聯儲批准，我們將發布新聞稿。但據我了解，資本在那裡累積。因此，當事情變得更加確定時，我們可以抓住回購機會。

Okay. And then maybe just on the tax rate as well. If you look out longer term into 2024, do you think the 12.5% to 13% tax rate for next year is a good run rate as well?

好的。然後也許也只是稅率。如果從長遠來看 2024 年，您認為明年 12.5% 至 13% 的稅率也是一個不錯的稅率嗎？

It's probably a little low. The -- we had a bottom -- we had 2 solar tax credit funds that overlap this year. And then next year, we'll have some runoff from the second fund that we give and then we'll go into a new one. But it should go up a little bit. We'll give guidance when we -- in January for 2024. And if you're modeling to the extent that the tax rate is higher, the solar amortization is lower, almost dollar for dollar.

可能有點低。我們已經觸底了，今年我們有兩個重疊的太陽能稅收抵免基金。明年，我們將從我們提供的第二支基金中獲得一些徑流，然後我們將投入一個新的基金。但應該會漲一點。我們將在 2024 年 1 月提供指導。如果您建模的稅率較高，那麼太陽能攤銷就會較低，幾乎是美元兌美元。

And our next question is a follow-up from Matthew Clark at Piper Sandler.

我們的下一個問題是 Piper Sandler 的 Matthew Clark 的後續問題。

Can you remind us what your SNC exposure is Shared National Credits?

您能否提醒我們您的 SNC 風險敞口是共享國家信用？

It's less than 5% of our total loans, Matthew.

這還不到我們總貸款的 5%，馬修。

Okay. Got it. And then, I guess, an update on office CRE and the related reserve and the amount that might be criticized, I'm assuming the reserve is consistent with the commercial real estate reserve, but I'm not sure if you guys tweaked anything this quarter. But again, the reserve and the amount criticized?

好的。知道了。 And then, I guess, an update on office CRE and the related reserve and the amount that might be criticized, I'm assuming the reserve is consistent with the commercial real estate reserve, but I'm not sure if you guys tweaked anything this四分之一.但同樣，儲備金和金額受到批評？

Well, our office reserve is -- we're reserving at about 85 basis points. What was the other part of your question? The amount that's criticized. I don't have that handy. I can tell you, in nonaccruals, we have think about $10 million in CRE loans, that's office.

嗯，我們的辦公室儲備是——我們的儲備約為 85 個基點。你問題的另一部分是什麼？被批評的金額。我沒有那個方便。我可以告訴你，在非應計專案中，我們考慮了 1000 萬美元的 CRE 貸款，這就是辦公室。

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國泰綜合銀行的管理層以作結束語。

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

我要感謝大家參加我們的電話會議，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。演示到此結束。您現在可以斷開連線。再會。