Cathay General Bancorp (CATY) 2024 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen and welcome to Cathay General Bancorp's fourth quarter and full year 2024 earnings conference call. My name is ASHA and I'll be your coordinator for today. (Operator Instructions) Today's call is being recorded and will be available for replay at www.cape General bank corp dotcom.

女士們、先生們，下午好，歡迎參加國泰萬通金控 2024 年第四季及全年獲利電話會議。我的名字是 ASHA，今天我將擔任您的協調員。（操作員指示）今天的通話正在錄音，可以在 www.cape General bank corp dotcom 上重播。

Now I would like to turn the call over to Georgia lo Investor relations ofCathay General Bancorp. Please go ahead.

現在我想將電話轉給國泰萬通金控投資者關係部的喬治亞·洛。請繼續。

Thank you, Asha 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，阿莎，下午好，我們在這裡討論財務結果。今天有我們的總裁兼執行長劉昌先生；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 1,990 five 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, 2023 at item one A in particular and other reports and filing with the Securities and Exchange commission from time to time as such.

在我們開始之前，我們希望提醒您，本次電話會議的發言人可能會根據 1990 年《私人證券訴訟改革法》的適用條款對未來結果和事件做出前瞻性陳述，並且這些陳述受某些風險和不確定性的影響，可能導致實際結果有所不同。重大。這些風險和不確定性在公司截至 2023 年 12 月 31 日的 10-K 表格年度報告第一項 A 中進行了進一步描述，並且還特別介紹了並不時向美國證券交易委員會提交的其他報告和文件。

We caution you not to place undue reliance on such forward-looking statements. Any forward-looking statement 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.

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其作出之日的觀點，除非法律另有規定，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、發展或事件或意外事件的發生的義務。

This afternoon, Cathay General Bancorp issued an earnings release outlining its fourth quarter and full year 2024 results to obtain a copy of our earnings release as well as our earnings presentation. Please visit our website at www dot Cathay General Bancorp dotcom. After comments by management today, we will open up this call for questions. I will now turn the call over to our President and Chief Executive Officer, Mr. Chang Liu.

今天下午，國泰萬通金控發布了一份收益報告，概述了其 2024 年第四季度和全年業績，可獲取我們的收益報告以及收益介紹的副本。請造訪我們的網站 www.Cathay General Bancorp.com。在今天管理層發表評論後，我們將開放本次問答環節。現在我將電話轉給我們的總裁兼執行長劉昌先生。

Thank you Georgia. And good afternoon before we go into our 2024 4th quarter earnings, I know that our hearts are heavy with the use of the devastating fires that have swept across Los Angeles. The destruction is unimaginable and our thoughts are with every person affected.

謝謝你，喬治亞。大家下午好，在我們開始討論 2024 年第四季收益之前，我知道，我們對席捲洛杉磯的毀滅性大火感到心情沉重。這場破壞是難以想像的，我們的心與每一位受影響的人同在。

Recovery is a long term process. The flames are extinguished. The work of rebuilding lives and communities will continue the bank along with the rest of our Los Angeles community will continue to work diligently towards that. Towards that part.

復原是一個長期的過程。火焰已滅。重建生活和社區的工作將繼續進行，銀行和洛杉磯社區的其他部分將繼續為此而努力。朝向那部分。

This afternoon, we reported net income of $80.2 million for Q4, 2024 an 18.8% increase. As compared to $67.5 million in Q3, the earnings per share increased 19.1% to $1.12 per share for the fourth quarter. As compared to $0.94 per share in Q3.

今天下午，我們報告 2024 年第四季淨收入為 8,020 萬美元，成長 18.8%。與第三季的 6,750 萬美元相比，第四季每股收益成長 19.1% 至每股 1.12 美元。相較於第三季每股 0.94 美元。

During Q4 2024 we repurchased 506,651 shares of our common stock at an average cost of $47.10 per share for 200 for $23.9 million under our May 20 2,400 and $125 million stock buyback program. We anticipate continuing to repurchase around 30 million in stock in Q1 2025 depending on market conditions.

在 2024 年第四季度，我們根據 5 月 20 日的 2,400 股和 1.25 億美元股票回購計劃，以平均每股 47.10 美元的價格回購了 506,651 股普通股，回購金額為 2,390 萬美元。根據市場情況，我們預計將在 2025 年第一季繼續回購約 3,000 萬股股票。

In Q4, 2024 total growth loans increased $2.4 million or 0.05% annualized primarily driven by increases of $59 million or 2.4% annualized in CRE loans and $30 million or 11.9% annualized in construction loans offset by decreases of $61 million or 4.2% annualized in residential mortgages and $9 million or 1.1% annualized in commercial loans. We expect loan growth in 2025 to be between 3% and 4%.

2024 年第四季，總成長貸款增加了 240 萬美元或年化 0.05%，主要原因是 CRE 貸款增加 5,900 萬美元或年化 2.4%，建築貸款增加 3,000 萬美元或年化 11.9%，但住宅抵押貸款減少 6,100 萬美元或年化 4.10 萬美元。我們預計 2025 年貸款成長率將在 3% 至 4% 之間。

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

幻燈片七顯示了每個主要貸款組合中固定利率貸款或固定利率期限內的混合貸款的百分比。

Our loan portfolio consists of 63% fixed rate and hybrid loans excluding fixed to flow interest rate swaps on 4.1% of the total loans.

我們的貸款組合由 63% 的固定利率和混合貸款組成，不包括固定流動利率互換，佔總貸款的 4.1%。

Fixed rate loans comprise 31% of total loans and hybrid fixed rate period comprise 32% of total loans. We expect these fixed rate loans to support our loan yield as market rates are expected to decline.

固定利率貸款佔總貸款的 31%，混合固定利率期限貸款佔總貸款的 32%。由於市場利率預計下降，我們預計這些固定利率貸款將支持我們的貸款收益率。

We continue to monitor our commercial real estate loans.

我們將繼續監控我們的商業房地產貸款。

Turning to slide 9 of our earnings stack as of December 31st 2024 the average loan to value of our CRE loans was 49%.

翻閱截至 2024 年 12 月 31 日的損益表第 9 頁，我們的 CRE 貸款的平均貸款價值比為 49%。

As of December 31st 2024. Our retail property loan portfolio as shown on slide, 10 comprised of 24% of our total CRE loan portfolio or 13% of our total loan portfolio.

截至 2024 年 12 月 31 日。我們的零售房地產貸款組合如投影片 10 所示，占我們總 CRE 貸款組合的 24% 或總貸款組合的 13%。

90% of the $2.4 billion in retail property loan is secured by retail store and buildings, neighborhood, mixed use or strip centers and only 9% is secured by shopping centers on slide 11 office property loans represent 14% of our total CRE loan portfolio or 7% of our total loan portfolio.

24 億美元零售房地產貸款中的 90% 由零售商店和建築物、社區、混合用途或商業街中心擔保，只有 9% 由幻燈片 11 上的購物中心擔保。辦公室房地產貸款占我們總 CRE 貸款組合的 14% 或總貸款組合的 7%。

Only 36% of the $1.4 billion in office property loans are collateralized by pure office and only 3.5% are in central business districts. 36% 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 for Q4 2024 we reported net charge offs of $16.3 million as compared to $4.2 million in Q3 of the $16.3 million net charge offs. $12.2 million is related to a syndicated commercial loan for a borrower in the recycling business.

14 億美元的辦公室地產貸款中，只有 36% 是以純辦公大樓作為抵押的，而且只有 3.5% 位於中央商務區。 36% 的辦公大樓物業貸款由辦公大樓零售店、辦公大樓混合用途和醫療辦公室作為抵押。其餘 28% 由辦公公寓抵押，2024 年第四季我們報告的淨沖銷額為 1,630 萬美元，而第三季的淨沖銷額為 420 萬美元。 1220 萬美元與為回收業務借款人提供的銀團商業貸款有關。

Our nonaccrual loans were 0.83% of total loans as of December 31st 2024 which increased $6.3 million to $69.2 million. As compared to Q3. The increase in nonaccrual loans during Q4 2024 came primarily from a $ 16 million CRE loan collateralized by a commercial and residential mixed use property in New York.

截至 2024 年 12 月 31 日，我們的非應計貸款佔總貸款的 0.83%，增加了 630 萬美元，達到 6,920 萬美元。與第三季相比。2024 年第四季不計息貸款的增加主要來自一筆 1,600 萬美元的 CRE 貸款，以紐約一處商業和住宅混合用途房地產作為抵押。

The loan was reclassified as Nonaccrual in December after the borrower filed for bankruptcy, the loan is fully secured by the collateral and no loss is projected.

借款人申請破產後，該筆貸款於 12 月被重新歸類為不計息貸款，該貸款完全由抵押品擔保，預計不會產生損失。

Turning to slide 13 as of December 31st, 2024 classified loans decreased slightly to $380 million from $382 million in Q3. And our special mention loans increased to $293 million from $203 million in Q3.

翻到第 13 張投影片，截至 12 月 31 日，2024 年分類貸款從第三季的 3.82 億美元小幅下降至 3.8 億美元。我們的特別提及貸款從第三季的 2.03 億美元增加到 2.93 億美元。

We recorded a provision for credit loss of $14.5 million in Q4 2024. Same as for Q3, the reserve to loan ratio decreased to 0.83% for Q4 from 0.85% for Q3. However, excluding our residential mortgage portfolio, the total reserve to loan ratio would be 1.08% total deposits decreased by $258 million or 5.3% annualized during Q4 2024. Primarily due to the decrease of $449 million in broker deposits. Total core deposits increased $417 million or 16.7% annualized due to seasonal factors and marketing activities.

我們在 2024 年第四季記錄了 1,450 萬美元的信用損失準備金。與第三季相同，準備金與貸款比率從第三季的0.85%下降至第四季的0.83%。然而，不包括我們的住宅抵押貸款組合，總準備金與貸款比率將為 1.08%，2024 年第四季的總存款減少 2.58 億美元，即年化減少 5.3%。主要是因為經紀人存款減少4.49億美元。由於季節性因素和行銷活動，核心存款總額增加了 4.17 億美元，年化成長率為 16.7%。

Total time deposits excluding broker deposits decreased $226 million during Q4 2024. We expect deposit growth for 2025 to be between 3% and 4%.

2024 年第四季度，不包括經紀人存款的定期存款總額減少了 2.26 億美元。我們預計 2025 年存款成長率將在 3% 至 4% 之間。

As of December 31st 2024 total uninsured deposits were $8.6 billion net of $0.8 billion in collateral collateralized deposits or 43.8% of total deposits.

截至 2024 年 12 月 31 日，無保險存款總額為 86 億美元，扣除 8 億美元的抵押品存款，佔總存款的 43.8%。

We have an unused borrowing capacity from the federal home loan bank of $7.2 billion in the Federal Reserve Bank of $395 million and Unpleased securities of $1.5 billion. As of December 31st 2024. The sources of available liquidity more than covers 100% of uninsured and uncola deposits. As of December 31st 2024.

我們從聯邦住房貸款銀行獲得的未使用借款額度為 72 億美元，從聯準會銀行獲得的未使用借款額度為 3.95 億美元，未償還證券為 15 億美元。截至 2024 年 12 月 31 日。可用流動資金來源涵蓋了 100％ 以上的未保險和無信用存款。截至 2024 年 12 月 31 日。

I will now turn the floor to our executive Vice President and Chief Financial Officer Mr Heng Chen to discuss the quarterly financial results in more detail.

現在，我將邀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. Q4 2024 net income increased to $12.2 million or 18.8% to $80.2 million compared to $67.5 million for Q3. Primarily you do an increase of $1.9 million in net interest income. $11.6 million decrease in noninterest expense at $4.1 million decrease in income tax expense offset by a $4.9 million decrease in noninterest income. Q4 2024 net interest margin was 3.07% as compared to 3.04% for Q3.

謝謝 Chang，大家下午好。2024 年第四季淨收入從第三季的 6,750 萬美元增加至 1,220 萬美元，或 18.8%，達到 8,020 萬美元。基本上，淨利息收入增加了 190 萬美元。非利息支出減少 1,160 萬美元，所得稅支出減少 410 萬美元，由非利息收入減少 490 萬美元所抵銷。2024 年第四季淨利差為 3.07%，而第三季為 3.04%。

We are pleased that our name and net interest income appear to have bottomed out and we anticipate further benefit to them and, and, and net interest income based on the ability to lower deposit costs over the next few quarters.

我們很高興看到我們的名稱和淨利息收入似乎已觸底，我們預計，基於未來幾季降低存款成本的能力，它們和淨利息收入將進一步受益。

While having the support of our fixed rate laws with the December, with the strong December job report, the fund, the first fund futures for rejects one rate cut in July 2025.

儘管有 12 月固定利率法律的支持，並且由於 12 月就業報告強勁，該基金（第一隻基金期貨）仍拒絕在 2025 年 7 月降息。

We anticipate that the net interest margin for 2025 to range between 3.10% and 3.20% in Q4 interest recoveries and pre penalties added four basis points to the net interest income. Oh, sorry to the net interest margin as compared to five basis points. And that is remargin for Q3 non interest income for Q4, 2024 decreased $4.9 million. The $15.5 million compared to $20.4 million in Q3, 2024.

我們預計 2025 年淨利差將在 3.10% 至 3.20% 之間，第四季的利息回收和預罰款將為淨利息收入增加 4 個基點。哦，抱歉，淨利差比起 5 個基點相比。這意味著 2024 年第四季第三季非利息收入的重新保證金減少了 490 萬美元。2024 年第三季為 2,040 萬美元，而 2024 年第三季為 1,550 萬美元。

A decrease what was primarily due to a 5.66 million change in market to market and real game. A 4.3% in Q3 to unrealized loss of $1.3 million in Q4 on equity securities. Noninterest expenses decreased by $11.6 million or 12% to $85.2 million in Q4 2024. When compared to $96.9 million in Q3, the decrease was primarily due to $12.7 million in lower solar tax credit.

下降的主要原因是市場與實際遊戲之間發生了 566 萬的變化。第三季股權證券未實現損失為 4.3%，第四季為 130 萬美元。2024 年第四季非利息支出減少 1,160 萬美元（即 12%）至 8,520 萬美元。與第三季的 9,690 萬美元相比，下降主要是由於太陽能稅收抵免減少了 1,270 萬美元。

Fun conversation we expect or not interest expense excluding tax credit and co for deposit and tangible amortization to increase between 4.5% to 5.5% for 20. But from 2024 to 2025 the effective tax rate for Q4, 2024 was 7.6% as compared to 13.6% for Q3. We expect the effective tax rate between 19.5% and 20.5% for 2025. We do not anticipate investing in any solar tax credit investment funds in 2025.

有趣的是，我們預計不包括稅收抵免和存款及有形攤提的利息支出將在 20 年內增加 4.5% 到 5.5% 之間。但從 2024 年到 2025 年，2024 年第四季的有效稅率為 7.6%，而第三季的有效稅率為 13.6%。我們預計 2025 年的實際稅率在 19.5% 至 20.5% 之間。我們預計 2025 年不會投資任何太陽能稅收抵免投資基金。

As of December 31 2024 our tier one leverage capital ratio increased to 10.97% as compared to 10.28%. As of September 30th 2024 our tier one risk based capital ratio increased to 13.55% from 13.33% as of September 30th 2024. And our total risk based capital ratio increased to 15.09% from 14.88% as of September 30th 2024.

截至 2024 年 12 月 31 日，我們的一級槓桿資本比率從 10.28% 上升至 10.97%。截至 2024 年 9 月 30 日，我們的一級創投比率從 2024 年 9 月 30 日的 13.33% 上升至 13.55%。截至 2024 年 9 月 30 日，我們的總創投比率從 14.88% 上升至 15.09%。

Thank you hang. We will now proceed to the question and answer portion of the call.

謝謝掛。我們現在將進入通話的問答部分。

(Operator Instructions)

（操作員指令）

Matthew Clark with Piper Sandler. Please go ahead.

馬修克拉克 (Matthew Clark) 和派珀桑德勒 (Piper Sandler)。請繼續。

Hey, good afternoon.

嘿，下午好。

Just a, just a few questions around the margin. Could you give us the average margin the month of December and then the spot rate on deposits at the end of the year?

只是，只是一些邊緣問題。您能否告訴我們十二月份的平均保證金以及年底的存款即期匯率？

Yeah, the average margin for the month of December was 3.05%. I'm sorry, 3.11% that includes six basis points of, of interest recoveries. And then what, what was the other part of your question?

是的，12 月份的平均利潤率為 3.05%。抱歉，3.11% 包含 6 個基點的利息回收。那麼，你的問題的另一部分是什麼？

The spot rate on deposits, either total or interest bearing at year end.

年末全額存款或計息存款的即期利率。

So the total weighted spot rate at your end was 3.52%.

因此，您這邊的總加權即期匯率為 3.52%。

Okay. That's interest bearing. Okay. And then can you remind us how much in the way of C DS you have coming due here in the first quarter and you know, rates they're maturing at and what are you expecting to renew it?

好的。這會產生利息。好的。然後，您能否提醒我們第一季您有多少 C DS 到期，它們的到期利率是多少，以及您預計續期的利率是多少？

It's quite a bit. So we have $4.2 billion of C DS maturing. This is from our chinese Lunar New year promotion that's maturing and the average yield is 4.6%. We're, we're offering the renewal from the Chinese New year at between 4% and 4.1% depending on the size of the deposit.

相當多。因此，我們有 42 億美元的 C DS 到期。這是我們即將到期的農曆新年促銷活動，平均收益率為 4.6%。從農曆新年開始，我們將提供 4% 至 4.1% 之間的續存利率，具體取決於存款金額。

Okay. And then just last one and I'll hop back in the queue the your expectations for the low income housing tax credit amortization this year in dollars.

好的。然後是最後一個問題，我將回到隊列中，詢問您對今年低收入住房稅收抵免攤銷的預期（以美元計算）。

It's about it's about $10 million a quarter.

每季約 1,000 萬美元。

Okay. And, and I know you're not going to do any solar, but are there any other tax credit, credit investments embedded in that tax rate guidance or is it just the low income housing we're, we're assuming for now?

好的。而且，我知道您不會做任何太陽能，但該稅率指導中是否包含其他稅收抵免、信貸投資，還是僅僅是我們目前假設的低收入住房？

It's just low income housing?

這只是低收入住房嗎？

Okay, thank you.

好的，謝謝。

The next question comes from Chris mcgrady with KBW. Please go ahead.

下一個問題來自 KBW 的克里斯麥格雷迪。請繼續。

Oh, great. Thanks for the question. I was wondering if you could unpack the expense, the core expense growth of roughly 5%. A little bit, a little bit higher than what we've been seeing. I'm wondering if there's a catch up in the, in some investments or anything in particular you'd call out.

噢，太好了。謝謝你的提問。我想知道您是否可以解釋一下這些費用，核心費用增加了大約 5%。比我們所見的稍微高一點。我想知道您是否在某些投資或任何特別的事情上取得了進展。

It's mostly we've been adding to staff in 2024.

我們主要在 2024 年增加員工。

So it's a full year impact of that and then we expect a higher bonus approvals for next year because this year we, we're paying out bonuses that lower than the target. So that's that. But really, I there's nothing, nothing significant.

所以這是對全年的影響，我們預計明年的獎金批准會更高，因為今年我們支付的獎金低於目標。就是這樣。但實際上，我什麼都沒有，沒有什麼重要的事。

Yes. So, Chris, you know, since the spring of 23 you know, we had to really beef up our risk side of our business. Given the, given the higher level of maturity on the risk side that's expected from the regulatory side. So, that's where we've been adding some of the bodies. I looked at actually our head count. It's been pretty consistent on the branch side and the lending side other than the uptick in the operational side.

是的。所以，克里斯，你知道，從 23 年春季開始，我們就必須真正加強我們業務的風險面。鑑於監管方面對風險方面的成熟度要求較高。所以，這就是我們添加一些屍體的地方。我實際查看了我們的人數。除了營運方面的成長外，分行和貸款方面的表現一直相當一致。

Okay, great. Yeah, you've talked about that chang in the past of even up the regulatory. Okay. That makes sense. And, and then on the nine, the $90 million increase in, I guess it was a special mention, any, any color there that you could provide.

好的，太好了。是的，您過去曾談到監管方面的變化。好的。這很有道理。然後，關於第 9 個，9000 萬美元的增幅，我想這是一個特別提及，您可以提供任何顏色。

Most of it is one credit that's that just had some lower profitability. So as an abundance of caution, we put that that loan on the special medicine.

其中大部分是獲利能力較低的信貸。因此，為了謹慎起見，我們將這筆貸款用於特殊藥物。

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

下一個問題來自 D A Davidson 的 Gary Tenner。請繼續。

Thanks. Good afternoon. Wanted to ask about the impact of the wildfires, obviously, nothing in terms of a kind of credit ramification for you this quarter. I know a lot of those areas had been closed to access for a period of time. They may still be can you talk about how you've gone about sort of assessing kind of the either property specific exposure you might have or kind of exposure to underlying businesses that might operate in some of these areas.

謝謝。午安.想問野火的影響，顯然，這對本季的信貸沒有任何影響。我知道很多地區已經關閉了一段時間了。他們可能仍然會問，您能談談您如何評估您可能擁有的特定房地產風險，或者可能在這些地區運營的基礎業務的風險嗎？

Or Gary. So let me, let me kind of give you some update. We look at the affected areas by zip codes. We also looked at what additional data is available based on L A county inspections. So far we have no loss reported of any of our commercial real estate portfolio. Nothing in the business banking portfolio and nothing in the SB A portfolio in the. We have some reported items in the C&I portfolio. There's one CN I with the collateral in the Palisades in that segment of it. And we have a few of the mortgages and two helocs that we report, we've received reports as well as have, verified them through some of the, some of the websites, but it's a small number compared to the size of the mortgage assets that we have in total.

或者加里。所以請允許我向您提供一些最新消息。我們根據郵遞區號查看受影響的區域。我們還查看了根據洛杉磯縣檢查所獲得的額外數據。到目前為止，我們尚未報告任何商業房地產投資組合的損失。商業銀行投資組合中沒有任何內容，SB A 投資組合中也沒有任何內容。我們在 C&I 產品組合中有一些已報告的項目。在那段路段中，有一輛 CN I 與其附屬車位於 Palisades。我們有幾筆抵押貸款和兩筆房屋淨值信貸額度需要報告，我們也收到了報告，並且已經通過一些網站對它們進行了驗證，但與我們總的抵押貸款資產規模相比，這個數字還是很小的。

Okay. I appreciate the color there. And then, just in terms of the securities yields come down a few quarters in a row. I didn't recall there being much in the way of, variable rate securities in your portfolio. Could you kind of talk to expectations of the securities you're going for?

好的。我很欣賞那裡的色彩。然後，就證券收益率而言，連續幾季下降。我不記得你的投資組合中有多少浮動利率證券。您能否談談您對所要收購的證券的預期？

Yeah. It's mostly, most of the change we've been buying six month treasury and we all, so that rate has come down between 2020. So during 2024 and then we have some, financial institutional debt that's, that's been called or, or matured. Those were generally over 5% range and those will not replace it. So it, but, that, that's pretty much it. We're not looking to expand that, the total amount of our securities portfolio at this time.

是的。主要是，我們大部分的零錢都是購買六個月期的國債，所以這個利率在 2020 年之間已經下降了。因此，在 2024 年期間，我們會有一些被稱為或到期的金融機構債務。這些一般都超過 5% 的範圍，並且不會取代它。就是這樣，但是，就是這樣。目前，我們並不打算擴大我們的證券投資組合的總額。

All right. Thank you. Once again, if you have a question, please press star, then one the next question. So it's Stevens. Please go ahead.

好的。謝謝。再次強調，如果您有疑問，請按星號，然後按下一個問題。所以是史蒂文斯。請繼續。

Hey, good afternoon.

嘿，下午好。

Changes that question capital. I think I heard in your prepared remarks, continued maybe interest in the buyback, but your, your capital is still in a really strong position. Just wanted to get, updated thoughts from you on any other potential avenues of capital deployment. Is M&A of interest to you in 2025? I would love to hear your thoughts.

質疑資本的變化。我想我聽到了您準備好的發言，也許您對回購仍然感興趣，但您的資本仍然處於非常強勢的地位。只是想了解您對其他潛在資本部署途徑的最新想法。2025 年您對併購有興趣嗎？我很想聽聽你的想法。

Yeah, sure, Andrew, we've always had an eye on the M&A side of the business, but as you know, we operate in a very niche market, there's certainly a number of players in our market. There's certainly some in Texas and New York, but the Texas and New York always sort of sub a billion which doesn't really move the base that much.

是的，當然，安德魯，我們一直關注業務的併購方面，但如你所知，我們在一個非常小眾的市場中運營，我們的市場中肯定有很多參與者。德州和紐約州當然也有一些，但德州和紐約州的資金始終都在 10 億美元以下，這對基數的影響並不大。

The ones in our backyard. It depends on the opportunity. If the opportunity is there, then certainly we'll look at it. If it makes sense for us and it's, it's accretive to the numbers and if it's a strategic mix for us, that makes sense, it's definitely something we'll look at, but some of them have profiles that's very similar to ours and there's not a lot of sort of enterprise value there. So it certainly give us a pause even if they were to become available.

我們後院裡的那些。這取決於機會。如果有機會，我們一定會考慮。如果它對我們來說是有意義的，並且它能增加數字，如果它對我們來說是一個戰略組合，那就有意義了，我們肯定會考慮它，但其中一些公司的概況與我們非常相似，而且那裡的企業價值並不多。因此，即使它們可用，我們也一定會停下來思考。

Understood. Thank you. And then on the, on the margin, I guess specifically the brokered deposit runoff this quarter, was that pretty evenly spread throughout the fourth quarter? Was it, front end or back end loaded? And then just expectations going forward. Is there any more broker broker deposits that you foresee remixing throughout 2025?

明白了。謝謝。然後，就利潤率而言，我猜特別是本季度的經紀存款流失，是否在整個第四季度均勻分佈？是前端加載還是後端加載？接下來只是對未來的期望。您預見到 2025 年期間還會有更多經紀人存款進行重新混合嗎？

Yeah, and through most of it was in November and December where we are where we had an inflow of core deposits. Some of which left in the second half of December, the core deposits.

是的，其中大部分是在 11 月和 12 月，當時我們的核心存款流入較多。其中一些在12月下半月留下了核心存款。

But where we, we'll probably just maintaining the brokers CD portfolio, it's come down quite a bit and yeah, we'll, we'll just maintain it unless we have good deposit growth and that's higher than, but it's a, it's a incremental source of deposits for us.

但是，我們可能只會維持經紀人的 CD 投資組合，它已經下降了不少，是的，我們會維持它，除非我們有良好的存款增長，而且高於，但它是我們的增量存款來源。

Got it. Okay. Thank you for taking the questions.

知道了。好的。感謝您回答這些問題。

Thank you.

謝謝。

The next question comes from Matthew Clark with Piper Sandler. Please go ahead.

下一個問題來自 Piper Sandler 的 Matthew Clark。請繼續。

Hey, I think you called out as part of your net charge offs being sure national credit related. Can you just remind us how large your, your SNC portfolio is?

嘿，我認為您所提到的淨沖銷的一部分是確保與國家信貸相關的。您能否提醒我們一下您的 SNC 投資組合有多大？

It's about 4% of our total loans. We've been trying that in 2024 to, to, to reduce the risk exposures.

這約占我們總貸款的4%。我們一直在努力在 2024 年降低風險敞口。

Got it and I guess what percent of that portfolio is criticized.

明白了，我猜這個投資組合中有多少百分比受到了批評。

I think most of the criticized is, is on, is in or not.

我認為，受到最多批評的是，是否在，是否在。

So, that.

以便。

Okay, it's, well, it's lower than average because we did sell about $50 million of sure national credits in Q4 to reduce credit exposures and, and we sold lots at a small discount. 2% or 3%.

好的，嗯，它低於平均水平，因為我們確實在第四季度出售了約 5000 萬美元的確定國家信貸，以減少信貸風險，而且我們以小幅折扣出售了很多信貸。 2% 或 3%。

Got it. Okay. And then just on the Chief Risk Officer departure, I think late last week look like retirement. But can you just provide some more color there on the?

知道了。好的。然後就首席風險長的離職而言，我認為上週晚些時候看起來就像是退休了。但您能提供更多顏色嗎？

Sure. Sure. Yeah, we you know, I mean, it's really kind of just timing, right? I mean, it's really the incumbent cro has expressed, that he wanted to step down and retire and kind of move off to the next chapter. But in the meantime, we were able to go out to market and, and search for candidates that are qualified in that, in that space. And really, I think post spring of 23 we need to be more focused on the risk side of the business. And so we believe we found the right candidate in Di in Diana and we're counting on her and going forward to elevate the maturity level of the, of the risk side for us.

當然。當然。是的，我們你知道，我的意思是，這真的只是時間問題，對吧？我的意思是，這確實是現任 cro 表達的意思，他想辭職、退休，然後開始下一個篇章。但同時，我們可以進入市場並尋找在該領域符合資格的候選人。事實上，我認為 23 年春季之後，我們需要更加關注業務的風險面。因此，我們相信，戴安娜就是合適的候選人，我們指望她能幫助我們提升風險的成熟度。

Great. Thank you. Let's see. Thank you for your participation. I will now turn the call back over to Cathy General Bank Management for closing yours.

偉大的。謝謝。讓我們來看看。感謝您的參與。我現在將把電話轉回給 Cathy General Bank Management，以結束您的業務。

I thank everyone for, 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.

我感謝大家，我想感謝大家參加我們的電話會議，我們期待在下一次季度收益發布電話會議上與您交談。

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

並感謝您參加今天的會議。本次演講到此結束。您現在可以斷開連線。再會。