Cathay General Bancorp (CATY) 2024 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Cathay General Bancorp's Second Quarter 2024 earnings conference call.

女士們、先生們，下午好，歡迎參加國泰綜合銀行 2024 年第二季財報電話會議。

My name is Cole, and I'll be your coordinator for today.

我叫科爾，我將擔任你們今天的協調員。

(Operator Instructions) 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.

（操作員說明）今天的通話正在錄音，可在 www.cathaygeneralbancorp.com 上重播。我現在想將電話轉給國泰綜合銀行投資者關係部的 Georgia Lo。

Please go ahead.

請繼續。

Thank you, Cole, and good afternoon.

謝謝你，科爾，下午好。

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.

我們的總裁兼執行長劉暢先生今天在這裡討論財務表現；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.

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》的適用條款就未來結果和事件做出前瞻性陳述，並且這些陳述受到某些因素的影響。

These results and uncertainties are further described in the company's annual report on Form 10K for the year ended December 31, 2023 at 1:00 AM, in particular and in other reports and filings with the Securities and Exchange Commission from time to time.

這些結果和不確定性在公司截至 2023 年 12 月 31 日凌晨 1:00 的 10K 表格年度報告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得到了進一步描述。

As such, we caution you not to place undue reliance on such forward-looking statements.

因此，我們提醒您不要過度依賴此類前瞻性陳述。

Any forward-looking statements speaks only as of the date on which it is made and except as required by law, we undertake no obligations to update or review any forward-looking statements to reflect future circumstances, developments or events or the occurrence of unanticipated events.

任何前瞻性陳述僅代表其作出之日的情況，除非法律要求，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事件發生的義務。

This afternoon, Cathay General Bancorp issued an earnings release outlining its second quarter 2024 results.

今天下午，國泰綜合銀行發布了一份財報，概述了 2024 年第二季的業績。

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.

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.

謝謝你，喬治亞，下午好。

Welcome to our 2024 second quarter earnings conference call.

歡迎參加我們的 2024 年第二季財報電話會議。

This afternoon, we reported net income of $66.8 million for Q2 2024, a 6.4% decrease as compared to $71.4 million in Q1.

今天下午，我們報告 2024 年第二季淨利潤為 6,680 萬美元，比第一季的 7,140 萬美元下降 6.4%。

Diluted earnings per share decreased by 6.1% to $0.92 per share for the second quarter of 2024 as compared to $0.98 per share in the prior quarter.

2024 年第二季的稀釋每股收益下降 6.1%，至每股 0.92 美元，上一季為每股 0.98 美元。

During Q2 2024, we repurchased 689,470 shares of our common stock at an average cost of $36.37 or $25.1 million under our May 2024, $125 million stock buyback program under the May 2024 stock repurchase program.

2024 年第二季度，我們根據 2024 年 5 月股票回購計畫回購了 689,470 股普通股，平均成本為 36.37 美元或 2,510 萬美元，根據 2024 年 5 月股票回購計畫回購了 1.25 億美元。

We anticipate repurchasing around$35 million in stock per quarter in Q3 and Q4, depending on market conditions.

我們預計第三季和第四季每季回購約 3,500 萬美元的股票，具體取決於市場狀況。

In Q2 2024, total gross loans decreased $72 million or 1.5% annualized, primarily driven by decreases of $42 million or 5.1% and annualized in commercial loans, $69 million or 4.6% annualizing residential mortgages, and [HELOC] and $25 million or 24.4% annualized in construction loans, offset by an increase of $64 million or 2.6% and annualizing commercial real estate loans due to slower than expected loan growth in the first half of 2024.

2024 年第二季度，總貸款減少7,200 萬美元，年化下降1.5%，主要是由於商業貸款年化減少4,200 萬美元，即5.1%；住宅抵押貸款年化減少6,900 萬美元，即4.6%；[ HELOC] 減少2,500 萬美元，即年化24.4%年化建築貸款，被增加 6,400 萬美元（即 2.6%）和年化商業房地產貸款（由於 2024 年上半年貸款成長低於預期）所抵銷。

We have revised our overall loan growth guidance for 2024 to range between 0% and 2%.

我們已將 2024 年整體貸款成長指引修訂為 0% 至 2% 之間。

Slide 6 shows the percentage of loans in each major loan portfolio that are either fixed rate or hybrid loans in the fixed rate period.

投影片 6 顯示了固定利率期間各主要貸款組合中固定利率或混合貸款的百分比。

Our loan portfolio consists of 64% fixed rate and hybrid loans, excluding fixed to floating interest rate swaps on 4% of total loans.

我們的貸款組合包括 64% 的固定利率和混合貸款，不包括佔總貸款 4% 的固定利率與浮動利率掉期。

Fixed rate loans comprised 30% of total loans in hybrid and fixed rate period comprised 34% of total loans.

混合期固定利率貸款佔貸款總額的30%，固定利率期貸款佔貸款總額的34%。

We continue to monitor our commercial real estate loans.

我們繼續監控我們的商業房地產貸款。

Turning to Slide 8 of our earnings presentation.

轉向我們收益簡報的幻燈片 8。

As of June 30, 2024.

截至 2024 年 6 月 30 日。

The average loan to value of our CRE loans was 50% as of June 30, 2024.

截至 2024 年 6 月 30 日，我們的商業房地產貸款的平均貸款價值為 50%。

For our retail property loan portfolio, as shown on slide 9, comprised of 24% of our total CRE loan portfolio or 12% of our total loan portfolio, 89% of the $2.4 billion retail property loan is secured by retail building net and a neighborhood mixed use or strip centers and only 10% of secured by shopping centers.

對於我們的零售房地產貸款組合，如幻燈片 9 所示，占我們 CRE 貸款組合總額的 24% 或貸款組合總額的 12%，24 億美元零售房地產貸款中的 89% 由零售建築網和社區提供擔保混合用途或地帶中心，只有10% 由購物中心保障。

On Slide 10, office property loans represent 15% of our total commercial real estate loan portfolio, or 8% of our total loan portfolio on the 35% of the $1.5 billion office property loans are collateralized by pure office buildings.

在投影片 10 上，辦公物業貸款占我們商業房地產貸款組合總額的 15%，或占我們貸款組合總額的 8%，因為 15 億美元的辦公物業貸款中有 35% 由純辦公大樓抵押。

Only 3% are in central business districts, 37% of office property loans are collateralized by office retail stores, office mixed use and medical offices and the remainder, 28% are collateralized by office condos.

只有 3% 位於中央商務區，37% 的辦公物業貸款由辦公零售店、辦公室混合用途和醫療辦公室抵押，其餘 28% 由辦公公寓抵押。

For Q2 2024, we reported net charge-offs of $8 million, of which $5.1 million was reserved as of March 31, 2024 as compared to $1.1 million in Q1.

對於 2024 年第二季度，我們報告淨沖銷額​​為 800 萬美元，其中截至 2024 年 3 月 31 日保留了 510 萬美元，而第一季為 110 萬美元。

Our non-accrual loans were 0.55% of total loans as of June 30th, 2024, which increased $9.2 million to $107.3 million as compared to Q1.

截至 2024 年 6 月 30 日，我們的非應計貸款佔貸款總額的 0.55%，與第一季相比增加了 920 萬美元，達到 1.073 億美元。

Increasing non-accrual loans during Q2 2024 came mainly from one office CRE loan and one retail condo CRE loans totaling $8.3 million with no projected losses based on recent appraisals.

2024 年第二季非應計貸款的增加主要來自一筆辦公室 CRE 貸款和一筆零售公寓 CRE 貸款，總額為 830 萬美元，根據最近的評估，預計不會出現損失。

Turning to Slide 12.

轉到投影片 12。

As of June 30, 2024 classified loans increased to $224 million from $244 million in Q1.

截至 2024 年 6 月 30 日，分類貸款從第一季的 2.44 億美元增至 2.24 億美元。

And our special mention loans decreased to $201 million from 249 million in Q1.

我們的關注貸款從第一季的 2.49 億美元減少到 2.01 億美元。

We recorded a provision for credit loss of $6.6 million in Q2 2024 as compared to a $1.9 million in provisions for credit losses for Q1, total deposits decreased by $73 million or 1.5% annualized during Q2 2024.

我們在2024 年第二季的信貸損失準備金為660 萬美元，而第一季的信貸損失準備金為190 萬美元，2024 年第二季存款總額減少了7,300 萬美元，年化率減少了1.5 %。

With now deposits decreased $186 million in Q2 due to the runoff of brokered deposits.

由於經紀存款的流失，第二季存款減少了 1.86 億美元。

Total core deposits decreased $274 million or 11% annualized and total time deposits increased $201 million or 8.6% annualized during Q2 2024, due to a shift from core deposits to time deposits with higher rates.

2024 年第二季度，核心存款總額減少2.74 億美元，年化成長率為11%，定期存款總額增加2.01 億美元，年化成長率為8.6%，原因是從核心存款轉向利率較高的定期存款。

We expect the overall deposit growth to continue and estimate a range between 3% and 4% as of June 30, 2024 total uninsured deposits were $8.2 billion.

我們預計整體存款成長將持續，並估計截至 2024 年 6 月 30 日，未保險存款總額為 82 億美元，增幅介於 3% 至 4% 之間。

Net of $0.8 billion in collateralized deposits were 41.5% of total deposits.

扣除 8 億美元抵押存款後，淨額佔存款總額的 41.5%。

We have an earnings and used borrowing capacity from the Federal Home Loan Bank of $7.1 billion in the Federal Reserve Bank of $174 million in unpledged securities of $1.7 billion as of June 30, 2024.

截至 2024 年 6 月 30 日，我們從聯邦住房貸款銀行獲得的收益和已用借款能力為 71 億美元，在聯邦儲備銀行的未質押證券為 1.74 億美元，金額為 17 億美元。

These sources of available liquidity more than cover 100% of uninsured and uncollateralized deposits as of June 30, 2024.

截至 2024 年 6 月 30 日，這些可用流動性來源超過 100% 的無保險和無抵押存款。

I will now turn the floor over to our Executive Vice President and Chief Financial Officer, Mr. Heng Chen to discuss the quarterly 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季度財務表現。

Thank you, Chang, and good afternoon, everyone.

謝謝張老師，大家下午好。

For Q2 2024, net income decreased by $4.6 million, 6.4% to $66.8 million compares to $71.4 million for Q1, primarily due to a EUR4.7 million increase in the provision for credit losses for Q2 2024 and partially due to $4.1 million, our $0.04 per diluted share from accelerated amortization of solar tax credit investments, which were previously forecasted to be amortized in the second half of 2024.

2024 年第二季度，淨收入下降460 萬美元，降至6,680 萬美元，較第一季的7,140 萬美元下降6.4%，這主要是由於2024 年第二季的信貸損失撥備增加了470 萬歐元，部分原因是410 萬美元，我們的0.04 美元每攤薄份額來自太陽能稅收抵免投資的加速攤銷，此前預計該投資將在 2024 年下半年攤銷。

Q2 2024 net interest margin was 3.01% as compared to 3.05% for Q1.

2024 年第二季淨利差為 3.01%，而第一季為 3.05%。

We are seeing signs that our net interest margin has begun to bottom out since NIM for the month of June was 3.06%, approximately $7.2 billion in high cost CDs, which will mature and reprice in the second half of 2024.

我們看到有跡象表明，我們的淨利差已開始觸底，因為6 月份的淨息差為3.06%，約為72 億美元的高成本CD，這些CD 將在2024 年下半年到期並重新定價。

And this will help lower the cost of deposits as they reprice into two interest recoveries and prepayment penalties as at two basis points of net interest income.

這將有助於降低存款成本，因為它們以淨利息收入的兩個基點重新定價為兩次利息回收和提前還款罰款。

Yeah, I'd say net interest margin has compared to 9 basis points in net interest margin for Q1.

是的，我想說淨利差與第一季的淨利差相比增加了 9 個基點。

Non interest income for Q2 2024 increased $6.6 million at $13.2 million when compared to $6.6 million in Q1 2024.

2024 年第二季的非利息收入增加了 660 萬美元，達到 1,320 萬美元，而 2024 年第一季的非利息收入為 660 萬美元。

The increase was primarily due to a $7.6 million decrease and mark-to-market unrealized loss on equity securities offset by $1.1 million decrease in realized gain on sale of investment securities in Q1 2024, non-interest expense increased by $6.1 million or 6.5% to $99.3 million in Q2 2024 when compared to $93.2 million in Q1.

這一增長主要是由於2024 年第一季減少了760 萬美元，按市值計價的股本證券未實現損失被出售投資證券的已實現收益減少110 萬美元所抵消，非利息費用增加了610 萬美元，即6.5%。

This increase was primarily due to $9 million and in higher amortization of low-income housing and solar tax credit investments, $1.2 million higher in professional expense and $1.2 million higher in [OREO] expense, offset by a decrease of $3 million in salaries and benefits due to a $2 million, true-up for the 2023 bonuses in Q1 and $1.1 million seasonally higher payroll expense in Q1.

這一增長主要是由於低收入住房和太陽能稅收抵免投資的攤銷增加了900 萬美元，專業費用增加了120 萬美元，[OREO] 費用增加了120 萬美元，但被工資和福利減少了300萬美元所抵銷由於第一季 2023 年獎金為 200 萬美元，以及第一季季節性增加的 110 萬美元工資支出。

And lastly, a decrease of $2.3 million in FDIC's assessment expense in Q1 2024.

最後，2024 年第一季 FDIC 的評估費用減少了 230 萬美元。

To build up the infrastructure of enterprise risk management and other control functions, we have increased the guidance for core non-interest expense, excluding tax credit and core deposit intangible amortization, can [OREO] expense to between 4% to 5% from our previous guidance of 3% to 3.5% effective tax rate for Q2 2024 was 7.9% as compared to 10.8% for Q1.

為了建立企業風險管理和其他控制功能的基礎設施，我們增加了對核心非利息費用的指導，不包括稅收抵免和核心存款無形攤銷，可以將[OREO]費用從我們之前的4％至5 ％之間2024 年第二季 3% 至 3.5% 的有效稅率指引值為 7.9%，而第一季為 10.8%。

We expect a effective tax rate between 10.5% and 11.5% for the second half of 2024.

我們預計 2024 年下半年的有效稅率將在 10.5% 至 11.5% 之間。

We now expect in total 2024 saw low tax credit investment amortization of $32.5 million with $10 million amortization in Q3 and $2 million amortization in Q4 as of June 30, 2024.

我們現在預計，截至 2024 年 6 月 30 日，2024 年低稅收抵免投資攤銷總額為 3,250 萬美元，其中第三季攤銷額為 1,000 萬美元，第四季攤提額為 200 萬美元。

Our Tier one leverage, capital ratio increased to 10.83% as compared to 10.71% as of March 31, 2024.

我們的一級槓桿率、資本比率從截至 2024 年 3 月 31 日的 10.71% 增加到 10.83%。

Our Tier one risk-based capital ratio increased to 13.6% from 13.8% as of March 31, 2024, and our total risk-based capital ratio increased to 14.74% from 14.55% as of March 31, 2024.

截至2024年3月31日，我們的第一級創投比率從13.8%上升至13.6%，總創投比率從截至2024年3月31日的14.55%上升至14.74%。

Thank you.

謝謝。

Heng will now proceed to the question and answer portion of the call.

Heng 現在將進行電話問答部分。

Thank you.

謝謝。

(Operator Instructions) Matthew Clark, Piper Sandler.

（操作員說明）Matthew Clark、Piper Sandler。

Good afternoon.

午安.

Thanks for the questions.

感謝您的提問。

The first one just on your spot rate on deposits at the end of June, you had that number, by their interest-bearing or total.

第一個是關於六月底存款的即期利率，你有這個數字，按其計息或總額。

Yes, hold on.

是的，堅持住。

We on that where have it here.

我們就在那兒有它。

So the spot rate of deposits, total interest-bearing 3.92%.

所以存款即期總計息利率為3.92%。

Okay, got it.

好的，明白了。

Thank you.

謝謝。

And then just wondering your updated expense guidance on a core basis.

然後只是想知道您更新的核心費用指南。

It implies that core run rate of $74.2 million this quarter drops, it's slightly below $72 million in the second half to get to the midpoint of the guide.

這意味著本季 7,420 萬美元的核心運行率下降，略低於下半年的 7,200 萬美元，達到指南的中點。

Just trying to get a sense for what's going to drive that reduction in the core expense rate.

只是想了解是什麼推動了核心費用率的降低。

Well, we continue to have small some onetime expenses in Q2, higher consulting, higher marketing, higher charitable contributions and things like that.

嗯，我們在第二季度繼續有一些小的一次性開支，更高的諮詢，更高的營銷，更高的慈善捐款等等。

We could be off $1 million a quarter here or there, but that we think expenses will moderate in the second half.

我們每季可能會減少 100 萬美元，但我們認為下半年開支將會放緩。

Okay.

好的。

And do you quantify I guess how much of that was unusual, I guess, around consulting, marketing charitable contribution?

我想你是否量化了諮詢、行銷慈善捐款中有多少是不尋常的？

Yes, I'd say it's about $2.5 million.

是的，我想說大約是 250 萬美元。

Okay, got it.

好的，明白了。

Okay.

好的。

Thank you.

謝謝。

And then just some quick one on low-income housing amortization expected in 3Q and 4Q?

然後是關於第三季和第四季預計的低收入住房攤銷的快速報道？

It's about $10 million a quarter each for low-income housing.

低收入住房每季約 1000 萬美元。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Andrew Terrell, Stephens.

安德魯·特雷爾，史蒂芬斯。

Hey, good afternoon.

嘿，下午好。

I wanted to ask on the on appreciate the $7.2 billion.

我想問一下這72億美元的升值狀況。

I think you said of CDs that mature in the back half of the year.

我想你說的是下半年成熟的CD。

I was curious if it is more heavily weighted to one quarter or is it fairly spread out between 3Q and 4Q?

我很好奇它是否更重地權重到四分之一，或者它在第三季和第四季之間相當分散？

And then just overall, can you talk about some kind of your expectations for spread pickup there and what kind of deposit cost reduction you're kind of aiming for?

總的來說，您能否談談您對利差回升的某種預期以及您的目標是降低什麼樣的存款成本？

Yeah, it's Q3 is slightly higher than Q2 or so is $3.7 billion in Q3 and Q4, is that about $3.5 billion.

是的，第三季略高於第二季度，第三季約為 37 億美元，第四季約為 35 億美元。

Our six month CDs from that Chinese promotion started to renew in July.

我們在中國促銷活動中的六個月 CD 從 7 月開始續約。

So the good news is we haven't seen any net runoff and so far.

好消息是，到目前為止，我們還沒有看到任何淨徑流。

And I think in general that rate was 5.2%.

我認為整體來說這個比率是 5.2%。

We used we've tiered the rates this time, and I think we're targeting around 5%, so that would be 20 basis points.

這次我們採用了分級利率，我認為我們的目標是 5% 左右，即 20 個基點。

Okay.

好的。

Perfect.

完美的。

I appreciate it.

我很感激。

And I would assume that any of the kind of repricing benefit there is factored into your margin guidance already?

我認為任何類型的重新定價收益都已經納入您的保證金指導中了嗎？

Yes, yes, of course, yes.

是的，是的，當然，是的。

Okay.

好的。

I was looking through the presentation on the classified loans look like they stepped up a decent amount this quarter, I think from $244 million last quarter, up to $324 million this quarter.

我瀏覽了有關分類貸款的演示文稿，看起來他們本季增加了相當多的金額，我認為從上個季度的 2.44 億美元增加到本季度的 3.24 億美元。

I was hoping you could maybe just talk about the step-up in classifieds a little more this quarter, kind of any common threads you're seeing in terms of what's driving the increase or just any color on the classified increase.

我希望您能多談談本季度分類廣告的成長，以及您在推動成長的因素方面看到的任何共同線索，或分類廣告成長的任何顏色。

Mostly downgrades from it's the EM class and they're all they're mostly are all real estate secure.

大部分是從 EM 類別降級的，而且它們大多都是房地產安全的。

So we don't think there's any significant risk there.

所以我們認為那裡不存在任何重大風險。

Okay.

好的。

Got it.

知道了。

And then, Chang, maybe just quickly any from you maybe refresh us on your interest for M&A currently, just like to get kind of a strategy update on that point?

然後，Chang，也許您很快就會向我們介紹一下您目前對併購的興趣，只是想了解有關這一點的策略更新？

Yeah.

是的。

We certainly have talked to you guys all about this.

我們當然已經和你們談過這一切了。

And until there's a viable candidate out there or companies out there that makes sense for us within our niche space, but we don't have anything on that pause right now.

直到有一個可行的候選人或公司在我們的利基空間內對我們有意義，但我們現在沒有任何暫停。

Okay.

好的。

Thanks for the questions for us.

感謝您向我們提出問題。

(Operator Instructios) Gary Tenner, D.A. Davidson.

（操作員指示）Gary Tenner，D.A.戴維森。

Thanks.

謝謝。

Good afternoon.

午安.

I just wanted to ask about the updated loan growth guidance of annualized loans through the first half of the year were down 4%.

我只是想問最新的貸款成長指引，上半年年化貸款下降了 4%。

So a pretty solid second half just to get back to even if not above it.

因此，下半場的表現相當穩健，即使沒有超越，也能回到狀態。

So given the change in tone in terms of the full year loan growth, can you talk about kind of how the pipelines look in various loan segments and where you expect kind of the driver of that improvement to come from.

因此，考慮到全年貸款成長的基調變化，您能否談談各個貸款領域的通路情況以及您期望這種改善的驅動力來自哪裡。

Yeah, Gary, most of it probably will come from some of the commercial real estate growth as you saw in the first in the second quarter results.

是的，加里，其中大部分可能來自商業房地產的一些增長，正如您在第二季度第一季業績中看到的那樣。

Our residential mortgage application is down 40%-ish from prior year.

我們的住宅抵押貸款申請量比去年減少了 40% 左右。

C&I businesses also down as well, given the higher rates and because of the higher rates that our clients are using their liquidity to pay down any of the outstanding balances as soon as they can.

由於利率較高，而且我們的客戶正在利用其流動性盡快償還任何未償餘額，因此工商業業務也有所下降。

We're trying to increase our both our loan side and deposit side and trying to pick up more C&I business.

我們正在努力增加我們的貸款和存款業務，並嘗試開展更多的工商業業務。

But for the most part, you'll probably see any of the increases, the positive side on the CRE side.

但在大多數情況下，您可能會看到任何成長，即商業房地產的正面。

Appreciate that.

很欣賞這一點。

And then historically on C&I, you've had kind of some positive fourth quarter seasonality.

從歷史上看，在工商業方面，第四季的季節性因素有些正面。

Do you think that is a positive factor this year as well?

您認為這也是今年的正面因素嗎？

Or given your comments about customers wanting to pay down those lines.

或給予您對想要支付這些費用的客戶的評論。

Do you think that that's a little bit more tempered this year by more tempered this year?

你認為今年的脾氣會變得更溫和嗎？

Gary, I think given where the rates are, even if there is a potential regarding September that I think the balances will still kind of stay on.

加里，我認為考慮到利率水平，即使 9 月份有可能，我認為餘額仍將保持不變。

The lower end utilization I think has been relatively flat around the

我認為低端利用率在 2019 年左右相對持平

[51, 50 percentile].

[51, 50%]。

So we're not expecting or looking for a fourth quarter on positive impact during that period.

因此，我們並不期望或尋找第四季度在此期間產生的正面影響。

Thank you.

謝謝。

Chris McGratty, KBW.

克里斯·麥克格拉蒂，KBW。

Hey. ,This is Andrew Leischner on for Chris McGratty. on I know you mentioned you're starting to see the NIM stabilize, and begin to bottom out here, but how should we be thinking about the NII trajectory from here?

嘿。 ,我是克里斯·麥格拉蒂的安德魯·萊施納。我知道你提到你開始看到 NIM 穩定下來，並開始觸底反彈，但我們應該如何從這裡考慮 NII 軌跡？

Thank you.

謝謝。

Well, we're going to keep see at our earning asset number, you know, flat to tell up slightly.

好吧，我們將繼續關注我們的獲利資產數字，你知道，持平或略有上升。

So that should go up partiarlly with the now expected September rate cut, then the second one in December.

因此，隨著現在預期的 9 月降息以及 12 月的第二次降息，這一數字應該會部分上升。

Okay, thank you.

好的，謝謝。

And then just one more if I can.

如果可以的話，然後再來一張。

Your CRE reserve is at 79 basis points and your content, your CRE concentrations, 288% of total RBC.

您的 CRE 儲備為 79 個基點，您的含量、您的 CRE 濃度為 RBC 總量的 288%。

What's your comparability there?

你那裡有什麼可比性？

And any thoughts on greater reserve build from here?

對於從這裡建立更大的儲備有什麼想法嗎？

Thank you.

謝謝。

Well, I think we look at low LTVs, which are about 50% and the fact that almost all of our CRE loans held for personal guarantees.

嗯，我認為我們著眼於較低的貸款價值比（LTV），約為 50%，而且我們幾乎所有的 CRE 貸款都用於個人擔保。

So we have to some wages, yes, usually what happens with non-accrual loans is that they stay in non-accrual for two or three quarters, depending on whether in California or New York.

所以我們必須有一些工資，是的，通常非應計貸款的情況是，它們會在兩個或三個季度內保持非應計貸款，這取決於是在加州還是紐約。

And if the barrowers still can't pay, they become

如果推手還是付不起錢，他們就會變成

[OREO].

[奧利奧]。

So and then, we normally are able to sell [OREO] close to our book fell.

然後，我們通常能夠在接近我們的帳面下跌時出售[奧利奧]。

So we don't think there's a hit in Cathay's history as we get on with the economy being so solid week, we think we'll be okay.

因此，我們認為國泰航空的歷史不會受到打擊，因為本週經濟狀況如此穩健，我們認為我們會沒事的。

But we would we want to have solid quarterly loan loss provisions to make sure that we remain adequately reserved.

但我們希望有可靠的季度貸款損失撥備，以確保我們保持足夠的準備金。

Okay, great.

好的，太好了。

Thank you for the color.

謝謝你的顏色。

I'll step back.

我會退後一步。

Thank you, and thank you for your participation.

謝謝您，也謝謝您的參與。

I will turn that I would now turn the call back over to Cathay General Bancorp's management for any closing remarks.

我現在將把電話轉回國泰綜合銀行的管理階層，讓他們發表結束語。

I want 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.

女士們、先生們，感謝你們參加今天的會議。

This concludes the presentation.

演示到此結束。

You may now disconnect and have a good day.

您現在可以斷開連接並度過美好的一天。