Cathay General Bancorp (CATY) 2026 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Cathay General Bancorp's first-quarter 2026 earnings conference call. My name is Ashia, 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.

各位女士、先生，下午好，歡迎參加國泰綜合銀行控股公司（Cathay General Bancorp）2026 年第一季財報電話會議。我叫 Ashia，今天將擔任會議協調人。（接線員指示）本次電話會議將被錄音，並可於 www.cathaygeneralbancorp.com 回放收聽。

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

現在我想把電話交給國泰綜合銀行控股公司投資人關係部的 Georgia Lo。請開始。

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

謝謝你，Ashia，大家下午好。今天與各位討論財務結果的有：我們的總裁兼執行長劉長先生（Mr. Chang Liu），以及我們的執行副總裁兼財務長王艾先生（Mr. Al Wang）。在開始之前，我們提醒各位，本次電話會議的發言人可能會依據 1995 年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）之相關條款，就未來結果與事件發表前瞻性陳述；此等陳述受若干風險與不確定性影響，可能導致實際結果與所述內容出現重大差異。

These results and uncertainties are further described in the company's annual report on Form 10-K for the year ended December 31, 2025, 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 on which 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.

上述結果與不確定性在本公司截至 2025 年 12 月 31 日止年度之 Form 10-K 年報（特別是第 1A 項）以及我們不時向美國證券交易委員會（SEC）提交的其他報告與申報文件中有更進一步的說明。因此，我們提醒各位不要過度依賴此類前瞻性陳述。任何前瞻性陳述僅截至其作成之日有效；除法律要求外，我們不承擔更新或檢視任何前瞻性陳述之義務，以反映未來情況、發展或事件，或未預期事件之發生。

This afternoon, Cathay General Bancorp issued an earnings release outlining its first-quarter 2026 results. To obtain a copy of our earnings release as well as our earnings presentation, please visit our website at cathaygeneralbancorp.com. After comments on management today, we will open up this call for questions.

今天下午，國泰綜合銀行控股公司已發布新聞稿，概述 2026 年第一季業績。如需取得我們的財報新聞稿以及財報簡報，請造訪我們的網站 cathaygeneralbancorp.com。管理階層發言結束後，我們將開放提問。

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

現在我把電話交給我們的總裁兼執行長劉長先生。

Thank you, Georgia. Good afternoon, and thank you for joining us today. I will begin on slide 3. We delivered solid financial performance in the first quarter. Reporting net income of $86.9 million and diluted earnings per share of $1.29.

謝謝你，Georgia。各位下午好，感謝今天加入我們。我將從第 3 頁投影片開始。我們在第一季交出穩健的財務表現。淨利為 8,690 萬美元，稀釋後每股盈餘為 1.29 美元。

We also delivered another quarter of net interest margin expansion, driven by disciplined deposit cost management in a competitive environment. Our results reflect two noteworthy items that largely offset each other. The first was a $17.3 million valuation gain on equity securities and the other was a $15.7 million impairment on AFS debt securities from balance sheet repositioning.

我們也再度實現淨利差擴張的一季，主要受惠於在競爭環境中對存款成本的嚴謹管理。本季業績反映兩項值得注意、且大致互相抵銷的因素。第一項為權益證券 1,730 萬美元的評價利益；另一項為因資產負債表重新配置而對可供出售（AFS）債務證券認列 1,570 萬美元的減損。

We sold lower yielding securities and reinvested at current market rates, a move that supports margin expansion and accelerates tangible book value recovery. Excluding these items, diluted EPS would have been $0.02 lower. Credit quality was stable overall this quarter. We saw improvement in nonperforming loans in net charge-offs, while criticized and classified levels remain steady, reflecting continued credit discipline across the portfolio.

我們出售了較低收益率的證券，並以目前市場利率再投資；此舉有助於利差擴張，並加速有形帳面價值的回升。若排除上述項目，稀釋後每股盈餘將低 0.02 美元。本季整體資產品質維持穩定。我們看到不良貸款與淨沖銷有所改善；同時，受關注與分類資產水準維持穩定，反映我們在整體投資組合中持續維持嚴謹的授信紀律。

We remain focused on maintaining a prudent risk profile given the broader economic and geopolitical backdrop. We continue to generate positive operating leverage. Our efficiency ratio improved to 40.4%, down 100 basis points from the prior quarter, supported by ongoing expense management and steady core performance. On an adjusted basis, our efficiency ratio decreased by 1.5% to 36.9% from last quarter.

鑑於更廣泛的經濟與地緣政治背景，我們仍專注於維持審慎的風險輪廓。我們持續創造正向的營運槓桿。在持續費用管理與核心表現穩健的支持下，我們的效率比率改善至 40.4%，較前一季下降 100 個基點。以調整後基礎計算，我們的效率比率較上季下降 1.5% 至 36.9%。

Capital management remains a priority. During the quarter, we increased our quarterly cash dividend to $0.38 per share, reflecting an 11.8% increase. We also completed the $150 million share repurchase program announced in June 2025 by repurchasing 244,000 shares at an average cost of $51.31. In addition, our Board approved a new $150 million share repurchase program, subject to regulatory approval, underscoring our commitment to returning capital to shareholders in a balanced and controlled way.

資本管理仍是優先事項。本季我們將季度現金股利提高至每股 0.38 美元，增幅為 11.8%。我們也完成了於 2025 年 6 月宣布的 1.5 億美元庫藏股回購計畫，以平均成本 51.31 美元回購 244,000 股。此外，本公司董事會核准一項新的 1.5 億美元庫藏股回購計畫（須經監理核准），彰顯我們以平衡且可控的方式回饋股東資本的承諾。

Loan growth was softer than we anticipated, but this reflects our disciplined underwriting approach. Our focus remains on supporting our loyal customers and deepening long-standing relationships rather than pursuing volume that will require taking on additional credit risk in this unpredictable economic environment. This relationship-driven strategy has served us well through many cycles and positions us well going forward.

貸款成長低於我們的預期，但這反映我們嚴謹的授信審核作法。我們的重點仍是支持忠誠客戶並深化長期關係，而非在此一難以預測的經濟環境中，為追求量體而承擔額外信用風險。這項以關係為導向的策略在多個景氣循環中一直為我們帶來良好成效，也使我們在未來具備良好定位。

I will now turn the call over to Mr. Al Wang to walk through our first quarter results in more detail. I'll provide some closing comments before we open the call up to Q&A.

接下來我把電話交給王艾先生，請他更詳細說明我們第一季的業績。在我們開放問答之前，我會再做一些結語。

Thank you, Chang. I'll start with our balance sheet on slide 4. We decreased our on balance sheet cash and short-term investments by $219 million to stay aligned with shifts in our funding profile. Period-end loans of $20.2 billion grew 0.2% linked quarter, reflecting our focus on relationship lending. Period-end deposits of $20.7 billion declined by 1% linked quarter, led by $71 million in broker deposits.

謝謝你，Chang。我先從第 4 頁投影片的資產負債表開始。為了與資金結構的變化保持一致，我們將表內現金與短期投資減少 2.19 億美元。期末貸款為 202 億美元，較前一季連結（linked quarter）成長 0.2%，反映我們專注於關係型放款。期末存款為 207 億美元，較前一季連結下降 1%，主要來自經紀存款減少 7,100 萬美元。

Capital levels remained in excess of regulatory well-capitalized thresholds and our internal limits. And we continue to grow book value per share by 2% linked quarter and 9% year over year.

資本水準仍高於監理機關對「資本充足（well-capitalized）」的門檻以及我們的內部限額。我們也持續推升每股帳面價值，較前一季連結成長 2%，年增 9%。

Slide 5 breaks down our loan and deposit mix. Average loan balances increased 1% on an annualized basis linked quarter while the composition remains stable and well diversified. CRE concentration of 278% declined by 9 points and continue to stay below regulatory guidelines. In addition, our exposure to private credit is minimal with NDFI loans making up less than 2% of total loans.

第 5 頁投影片拆解我們的貸款與存款結構。平均貸款餘額以年化基礎計算，較前一季連結增加 1%；其組成仍維持穩定且高度分散。商用不動產（CRE）集中度為 278%，下降 9 個點，並持續低於監理指引。此外，我們對私募信貸（private credit）的曝險極低，非存款金融機構（NDFI）貸款占總貸款比重不到 2%。

Average deposits decreased 3% linked quarter on an annualized basis, driven by the decline in brokered deposits. Core deposit outflows were largely seasonal and reflected normal cash management activity by our commercial customers. Our uninsured deposit ratio stayed consistent at 45%.

平均存款以年化基礎計算，較前一季連結下降 3%，主要受經紀存款下滑所致。核心存款流出多屬季節性因素，反映商業客戶正常的現金管理活動。我們的未投保存款比率維持一致，為 45%。

Slide 6 is a new slide to illustrate the strong liquidity, credit, and interest rate risk profile of our available-for-sale investment portfolio. In Q1, we recognized a $15.7 million impairment loss on our AFS securities portfolio as part of a securities repositioning initiative. During the first week of April, we sold $210 million of lower-yielding mortgage-backed securities and reinvested $197 million into similar duration securities at significantly higher yields. This trade carried an earn back under three years while keeping our overall duration and credit profile essentially unchanged.

第 6 頁投影片為新增頁面，用以說明我們可供出售（AFS）投資組合在流動性、信用與利率風險方面的強健輪廓。在第一季，作為證券重新配置計畫的一部分，我們對 AFS 證券投資組合認列 1,570 萬美元的減損損失。在 4 月的第一週，我們出售了 2.10 億美元較低收益率的不動產抵押貸款證券（MBS），並將 1.97 億美元再投資於存續期間相近、但收益率顯著較高的證券。此筆交易的回收期（earn back）不到三年，同時使整體存續期間與信用輪廓基本維持不變。

We keep the overall portfolio short and high quality. Duration is just under two years, and nearly two-thirds of the cash flows will come back this year. Unrealized losses have been improving as rates move and over 90% of the portfolio is US government backed with the rest in investment-grade securities.

我們維持整體投資組合存續期間偏短且品質良好。存續期間略低於兩年，且將近三分之二的現金流會在今年回收。隨著利率變動，未實現損失已持續改善；投資組合中超過 90% 由美國政府背書，其餘則為投資等級證券。

Slide 7 highlights our income statement. Net income of $86.9 million decreased 4% linked quarter due to lower noninterest income, offset by lower noninterest expense, which I will discuss in more detail on the following slides.

第 7 頁投影片重點呈現我們的損益表。淨利 8,690 萬美元較前一季連結下降 4%，主因非利息收入較低；部分由較低的非利息費用所抵銷，相關內容我將在接下來的投影片中更詳細說明。

Slide 8 summarizes our yield and funding costs. Net interest income of $194 million declined $0.8 million compared to last quarter due to day count, offset by margin expansion. Net interest margin of 3.43% grew 7 basis points compared to last quarter as deposit costs decreased, offset by a decline in loan yields driven by the Federal Reserve's latest interest rate cuts in the fourth quarter.

第 8 張投影片總結了我們的收益率與資金成本。淨利息收入為 1.94 億美元，較上季減少 80 萬美元，主要因天數因素所致，但部分被利差擴大所抵銷。淨利息利差（NIM）為 3.43%，較上季增加 7 個基點，因存款成本下降，但部分被貸款收益率下滑所抵銷；貸款收益率下滑係受聯準會於第四季最新降息影響。

Slide 9 highlights noninterest income. Noninterest income decreased $7.1 million linked quarter, driven by the notable items Chang mentioned previously. Specifically, we recognized $17.3 million in valuation gains in our equity securities portfolio, offset by the $15.7 million AFS securities impairment repositioning loss. Adjusting for these items, including the gain on equity securities in both periods, noninterest income would have been $19.1 million compared to $18.1 million in the prior quarter reflected an increase of 5.52%.

第 9 張投影片重點說明非利息收入。非利息收入較上季減少 710 萬美元，主要受 Chang 先前提到的顯著項目影響。具體而言，我們在股票證券投資組合認列 1,730 萬美元的評價利益，但被 1,570 萬美元的可供出售（AFS）證券減損重整損失所抵銷。若調整上述項目（包含兩期皆納入股票證券收益），非利息收入將為 1,910 萬美元，較前一季的 1,810 萬美元增加 5.52%。

Moving to slide 10. Noninterest expense decreased from $92.2 million to $86.7 million this quarter. This decline was driven by $4.5 million of lower amortization expense on our low-income housing and alternative energy partnerships, along with lower compensation and benefit costs. It's worth noting that most peer banks record the amortization of tax credit investments and income tax expense under the proportional amortization method rather than in noninterest expense as we do.

接著看第 10 張投影片。本季非利息費用由 9,220 萬美元降至 8,670 萬美元。下降主因為我們的低收入住宅與替代能源合夥投資之攤銷費用減少 450 萬美元，另加上薪酬與福利成本降低。值得注意的是，多數同業銀行會依比例攤銷法，將稅額抵減投資的攤銷與所得稅費用列在所得稅費用項下，而非像我們一樣列在非利息費用中。

When adjusting for this difference and other noncore items, adjusted noninterest expense would have been $78.7 million, which is $3 million lower than last quarter. On the same basis, our adjusted efficiency ratio improved to 36.9% compared to 38.4% in the prior quarter.

若就此差異及其他非核心項目進行調整，調整後非利息費用將為 7,870 萬美元，較上季低 300 萬美元。在相同基礎下，我們的調整後效率比率改善至 36.9%，相較前一季為 38.4%。

On slide 11, you'll see that our asset quality stayed solid. We increased our allowance by $13 million to $209 million, which puts coverage at 1.03% or 1.30% excluding residential mortgages. That increase was driven by model updates, including a slight softening in the macroeconomic outlook.

在第 11 張投影片中，你會看到我們的資產品質仍然穩健。我們將備抵損失增加 1,300 萬美元至 2.09 億美元，使覆蓋率達 1.03%；若排除住宅房貸則為 1.30%。此增加主要來自模型更新，包括對總體經濟展望略為轉弱的反映。

Net charge-offs improved dropping from $5.4 million last quarter to $2.1 million this quarter. Classified loans were up $39 million, while special mentioned loans came down $55 million. And importantly, our nonperforming asset ratio continued to trend in the right direction, improving from 59 to 51 basis points.

淨沖銷有所改善，由上季的 540 萬美元降至本季的 210 萬美元。分類貸款增加 3,900 萬美元，而特別提及貸款減少 5,500 萬美元。更重要的是，我們的不良資產比率持續朝正向趨勢發展，由 59 個基點改善至 51 個基點。

Turning to slide 12. Capital levels remain strong and well above well-catalyzed regulatory thresholds with a modest increase from last quarter. I'll wrap up on slide 13 with our outlook.

接著看第 12 張投影片。資本水準仍然強勁，且遠高於「資本充足」的監理門檻，並較上季小幅提升。我將在第 13 張投影片以我們的展望作結。

We continue to expect full year loan growth in the 3.5% to 4.5% range and deposit growth of 4% to 5%. Adjusted noninterest expense is still expected to increase between 3.5% to 4.5% for the year. Our NIM and NII outlook no longer assumes any rate cuts in 2026. But even with that change, we remain confident in achieving our NIM target of 3.40% to 3.50%. We expect an effective tax rate of roughly 21%.

我們仍預期全年貸款成長介於 3.5% 至 4.5%，存款成長介於 4% 至 5%。調整後非利息費用全年仍預期增加 3.5% 至 4.5%。我們對 NIM 與 NII 的展望不再假設 2026 年會有任何降息。即便如此，我們仍有信心達成 3.40% 至 3.50% 的 NIM 目標。我們預期有效稅率約為 21%。

And with that, I'll turn the call back over to Chang.

接下來，我把電話會議交回給 Chang。

Thank you, Al. Overall, we feel very good about how we started the year, notwithstanding geopolitical tensions and uncertainty in the macro environment. We delivered solid financial performance by growing tangible book value per share to $30.95, expanding NIM by 7 basis points and continuing to manage capital prudently to expand the buyback capacity and dividend increases. Looking ahead, we are entering the second quarter with good momentum.

謝謝你，Al。整體而言，儘管地緣政治緊張與總體環境不確定性，我們對今年的開局感到非常滿意。我們交出穩健的財務表現：每股有形帳面價值成長至 30.95 美元，NIM 擴大 7 個基點，並持續審慎管理資本，以提升回購能力並增加股利。展望未來，我們帶著良好動能進入第二季。

Similar to last year, we saw a slower start to the first quarter, but activity strengthened meaningfully as the year progressed, and we expect a similar pattern as we move through 2026. Finally, I want to thank our team members for everything they do for our company, our communities, and our clients.

與去年類似，我們第一季起步較慢，但隨著年度推進，活動明顯轉強；我們預期在邁入 2026 年的過程中也會呈現相似型態。最後，我要感謝我們的團隊成員，感謝他們為公司、社區與客戶所做的一切。

With that, we can now open it up for questions.

接下來，我們開放提問。

(Operator Instructions) David Chiaverini, Jefferies.

(接線員指示) David Chiaverini，Jefferies。

I wanted to start on the net interest margin. So it was very strong in the quarter. Can you talk about -- and you reiterated the guide. So I'm curious about the outlook kind of sequentially from here?

我想先從淨利息利差談起。本季表現非常強勁。你能否談談——你也重申了指引。所以我想了解一下，從現在起按季（逐季）來看，後續展望如何？

And then to your point about rate cuts being eliminated from your assumptions, whether that would take us either to the high end or the low end or if you're still kind of thinking the midpoint of that range. Can you talk about that?

另外，關於你提到已將降息從假設中移除，這是否會讓我們落在區間的高端或低端，或你們仍大致以該區間的中點作為思考基準？能否談談這點？

Yeah. Obviously, the -- without any cuts forecasted in, that's obviously going to put pressure and point us down slightly. But remember, we did the securities reposition, so that should help by a few basis points for the year.

是的。顯然，在不再納入任何降息預測的情況下，這會帶來壓力，並使我們的走勢略微下行。但請記得，我們做了證券部位重整，這應該能在全年帶來幾個基點的助益。

And when I look at kind of our loan portfolio, right? So we -- our yield was $6.01 for the quarter. But when I take a look at kind of the origination rates for the commercial real estate book in the first quarter and kind of the origination rates in mortgage. Those came in at like 6.15% and 6.12%, respectively. So higher than kind of the NIM.

再看我們的貸款組合，對吧？本季我們的收益率是 6.01%。但當我看第一季商用不動產（CRE）放款的承作利率，以及房貸的承作利率，分別約為 6.15% 與 6.12%。因此它們高於目前的 NIM 水準。

So I think, obviously, there is more pressure on C&I. But I think with the mortgage and CRE kind of repricing and kind of what we're repricing on, I think that will support. So I think if the loan yield -- I don't -- we don't expect it to drop off very much, if at all. So I think that's going to help support.

所以我認為，顯然 C&I（商業與工業貸款）承受的壓力更大。但我認為，隨著房貸與 CRE 的重新定價，以及我們目前重新定價的水準，將提供支撐。因此我認為貸款收益率——我不——我們預期即使會下滑，幅度也不會很大，甚至可能不會下滑。所以我認為這將有助於支撐。

On the deposit side, we still have room to run also. I mean we had a [2.96%] cost for interest-bearing this past quarter. But if you think about it, we've got -- that was -- a lot of the expansion was that I think we said last quarter that we had almost $4 billion of CDs rolling off at a [3.80%] weighted average rate. So obviously, that -- those came on favorably this quarter.

在存款端，我們也仍有下行空間。也就是說，本季計息存款成本為 [2.96%]。但如果你想想，我們——那次擴張有很大一部分來自於：我想我們上季提到，約有 40 億美元的定存（CD）到期，當時加權平均利率約為 [3.80%]。所以很明顯，這些在本季以較有利的條件續作。

And if I look at next quarter, for example, we've got close to $3 billion with a [3.62%] handle or kind of weighted average rate. So we think that there's definitely -- I think, most of the benefits from the lower rate environment and the cuts are kind of behind us. But we still think there's still some room there to manage those costs down slightly. So between the two, I think we still feel comfortable with the overall kind of guide for the year.

再看下一季，例如，我們有接近 30 億美元的部位，加權平均利率約為 [3.62%]。所以我們認為，確實——我想，較低利率環境與降息帶來的大部分好處大致已在我們身後。但我們仍認為，在把這些成本再略微往下管理方面，仍有一些空間。因此綜合兩者，我們仍對全年整體指引感到安心。

We do acknowledge that if I look at brokered rates, for example, at the beginning of the year, it was like in the 3.60% to 3.70% for CDs, for large CDs. Today, that's, I think, 4% to 4.05%. So there's definitely a lot more pressure and competition with deposits. But right now, when we look at kind of the profile, we think that there's still a little bit of room for expansion through this year.

我們也承認，例如若看經紀存款利率，在年初時，大額定存（CD）大約在 3.60% 到 3.70%。而今天我認為約在 4% 到 4.05%。所以存款端確實面臨更大的壓力與競爭。但就目前我們所看到的結構與輪廓而言，我們認為今年仍有一些擴張空間。

Obviously, depending on -- if rates are cut, and there actually are cuts later in the year, that will be beneficial to us. But for now, I think we're good for the year for our guidance.

顯然，視情況而定——如果降息，而且今年稍晚確實有降息，那將對我們有利。但就目前而言，我認為我們今年的財測指引沒有問題。

Very helpful color on that. And on that securities repositioning, held in isolation, can you estimate how much that should contribute to NIM. You gave the sizing of it. Maybe you can help us with how much -- what the yield was that rolled off or was sold and what the yield was that came on?

這些補充說明很有幫助。另外關於那項證券部位調整，若單獨看這件事，您能否估算它對淨利差（NIM）的貢獻大概有多少？您已提供了規模。也許您可以協助我們了解：到期/賣出的那部分收益率是多少，以及新買進的收益率是多少？

Yeah. It was -- I think about [2.45%] was the yield that we sold, and we put on -- they were -- the coupon was like $5.5 million and they were mostly kind of long-dated mortgage-backed securities. I think the effective yield on that is like [5.33%] or something around that range. So a little over $5.5 million annually.

好的。我們賣出的那部分收益率我記得大約是[2.45%]；而我們買進的——票息大概是550萬美元，主要是較長天期的抵押貸款支持證券（MBS）。我想其有效收益率大約是[5.33%]，或是在那個區間附近。所以每年大概略高於550萬美元。

So if you think about for 2026, we take -- the trade happened early in the quarter. So we'll take three quarters of that amount into this year. So probably about 2 to 3 basis points or 2 to 2.5 basis points to NIM for the year. And then maybe $4 million, let's call it, of additional boost to NII.

所以如果你以2026年來看——這筆交易是在本季初完成的。因此今年我們會認列其中三個季度的金額。所以對今年的NIM大概貢獻2到3個基點，或2到2.5個基點。然後對淨利息收入（NII）額外的提振大概是400萬美元左右。

Matthew Clark, Piper Sandler.

Matthew Clark，Piper Sandler。

Just want to get the amount of prepay and any interest recoveries in net interest income, I think it was around $3 million last quarter.

我想確認一下淨利息收入中提前償還（prepay）以及任何利息回收（interest recoveries）的金額，我記得上季大約是300萬美元。

Yeah. So it was about 3.5% this quarter, which was about 6 basis points. So we -- for the quarter, our reported NIM was 3.43%. It would have been 3.37% for those items. We also had a small FHLB dividend -- special dividend as well included in that number.

是的。所以本季大約是3.5%，約等於6個基點。因此本季我們揭露的NIM是3.43%。若排除那些項目，會是3.37%。另外我們也有一筆小額的FHLB股利——特別股利——也包含在那個數字裡。

Within that $3.5 million?

是在那3.5百萬美元裡面嗎？

Yes.

是的。

Okay. Okay. And then the low-income housing tax credit amortization came down more so relative to your guide coming into the year. Just want to get your updated thoughts on that run rate for the balance of the year.

好的。好的。另外，低收入住宅稅額抵免（LIHTC）攤銷相較於你們年初給的指引下降得更多。想請教你們對今年剩餘期間該攤銷水準（run rate）的最新看法。

Yeah. It's -- I mean, that's a fluid number. Obviously, it depends on kind of the timing of tax credits and the performance of the projects in the portfolio. We think that it's probably going to be in the $7 million to $8 million range for the next few quarters throughout the year.

好的。我的意思是，那是一個會變動的數字。顯然它取決於稅額抵免的時點，以及投資組合中各專案的表現。我們認為接下來幾個季度、今年全年大概會落在700萬到800萬美元的區間。

Okay. Good. And then just on the loan growth commentary in your prepared remarks and I think in the release that has just been a little more cautious, but sticking to the guide for the year. Is that -- is it because you're seeing the pipeline building? Or is it because you're a little -- you feel like at this point, you're a little more open or not as cautious as maybe you were during the first quarter? Just wanted to get some thoughts there.

好的。很好。再來關於你們在事先準備的講稿以及我想在新聞稿中提到的放款成長評論，語氣稍微更審慎一些，但仍維持全年指引。這是因為你們看到案源（pipeline）正在累積嗎？還是因為你們覺得在這個時間點，相較第一季，你們更開放、或沒有那麼審慎了？想聽聽你們的想法。

Yeah. So for us, on the loan growth side, we saw some sort of some increased paydowns in our construction loan portfolio. So some of our customers took advantage of some of the refinancing opportunities with the life companies and the Fannies that have much better competitive longer-term rates than we had. Our originations were healthy, but not enough to offset the timing of the paydowns.

是的。就我們而言，在放款成長方面，我們看到建築貸款投資組合出現一些較多的提前償還。因此部分客戶把握了與壽險公司以及房利美（Fannie）再融資的機會，那些機構提供的長天期利率競爭力比我們好得多。我們的新承作（originations）是健康的，但不足以抵消提前償還的時點影響。

But today, our pipelines are still healthy and strong and the customer engagement has improved. So we expect the growth to be sort of more weighted towards the middle and the back end of the half.

但目前我們的案源仍然健康且強勁，客戶互動也有所改善。因此我們預期成長會比較偏向集中在上半年中段以及後段。

Gary Tenner, D.A. Davidson.

Gary Tenner，D.A. Davidson。

I just wanted to follow up a little bit on the funding side of the equation. I'll appreciate the color on the second quarter CD maturities. Can you give us an idea of where the first quarter ones that rolled off at [3.80%] where they were renewed?

我想在資金端再追問一下。感謝你們對第二季定存（CD）到期的補充說明。你們能否讓我們了解一下，第一季到期、以[3.80%]滾出（roll off）的那些，續作時大概是多少利率？

Yeah. So as you know, we had a literally a new year promotion at I think 3.65% for six months and 3.50% for 12. So I think we extended that program by a couple of weeks.

好的。如你所知，我們在新年期間推出促銷，六個月期我記得是3.65%，12個月期是3.50%。所以我想我們把那個方案延長了幾週。

And then like I said in my commentary, we had -- you can see there's been a lot more pressure, especially since kind of February and even since the war started the pressure on rates has been kind of pushing upwards. So we think it's around kind of the mid-3.50s is kind of in the first quarter of what we kind of put on.

然後就像我在評論中提到的，我們看到——你也看得到——利率壓力變得更大，尤其是從2月左右開始，甚至自戰爭爆發以來，利率壓力一直在往上推。所以我們認為第一季我們新承作的利率大概在3.50%中段左右。

Okay. And so that would suggest that the [3.60%] rolling off in the second quarter, even without the specials, probably not too much of a benefit. Is that fair --

好的。那這表示第二季到期、以[3.60%]滾出的那些，即使沒有特別促銷，帶來的好處可能也不大。這樣理解公平嗎——

Yeah, we think there'll be a marginal benefit from that. Again, it's probably around 3.50% with the rate that we put on last quarter.

是的，我們認為會有些微的好處。同樣地，我們上季新承作的利率大概在3.50%左右。

Okay. Appreciate that. So in terms of the -- and you talked about that in a little bit. I appreciate the color there.

好的。感謝說明。所以就——而你也稍微談到這點。我很感謝你在這方面提供的補充。

I guess just to encapsulate it. I mean with no cuts, pretty flat in bias ex the securities repositioning? I mean, is that kind of in a nutshell, what you think about it?

我想把它簡化總結一下。也就是說，如果不降息，撇除證券部位調整，整體大致持平、略偏平坦？也就是說，概括而言你們的看法是這樣嗎？

Yeah. Yeah, that's right. Again, I think the lending side, we shouldn't see much degradation in terms of the yields on that side. Again, we have some -- we have mortgages, for example, that we put on five years ago in a lower rate environment, for example, five-plus years ago. So when those come back and get booked back on, that will help support kind of our NIM.

是的。對，沒錯。再說一次，我認為在放款端，我們不應該會看到收益率有太多惡化。另外，我們有一些——例如房貸——是五年前在較低利率環境下承作的，像是五年多前。所以當那些回流並重新入帳時，將有助於支撐我們的NIM。

Okay. Great. If I could ask one more. Just on the asset quality front. I mean, the metrics overall were good and you increased the allowance by 6 basis points, and you kind of commented about model recalibration and deterioration and macro conditions.

好的。很好。如果我可以再問一個。關於資產品質方面。整體指標都不錯，而你們把備抵呆帳（allowance）提高了6個基點，並提到模型重新校準、惡化以及總體環境。

Can you change weightings in your model in terms of building the allowance? Or maybe just kind of give us a sense of how you were thinking about that.

你們可以在模型中調整權重來建立備抵嗎？或者能否大致說明一下你們當時是如何思考這件事的。

Yeah. The biggest move was just kind of a recalibration of one of the inputs in the model. And in terms of the weightings, I would say, for the overall book, we kept the weightings the same, but we did change the weightings for certain portfolios within the book that pushed the reserves up for those particular portfolios and obviously, overall as a result.

是的。最大的變動主要是對模型中的其中一個輸入做了重新校準。至於權重，我會說就整體放款帳簿而言，我們維持相同的權重，但我們確實針對帳簿內某些特定投資組合調整了權重，這使得那些特定投資組合的準備金上升，當然也因此帶動整體水準上升。

Can you comment just which portfolios you increased or changed the weightings on.

您能否說明一下，您增加或調整權重的是哪些投資組合？

Yeah. So we so basically -- yeah, so the way we thought about it is, in our models, we use kind of a national kind of economic forecasts. But obviously, as you know, we're very coastal, right? We've got a lot of motor portfolio in kind of California and New York.

可以。所以我們基本上——對，是這樣想的：在我們的模型中，我們使用的是全國性的經濟預測。但很明顯，如您所知，我們的曝險非常偏向沿海地區，對吧？我們有相當多的汽車相關投資組合集中在加州和紐約。

So we look specifically at kind of the office portfolio and said, hey, we have a lot of office kind of on the coast. And I don't know if the national forecast kind of are doing those portfolios justice. So we kind of stress those portfolios a little bit more.

因此我們特別去看辦公室投資組合，並說，嘿，我們在沿海地區有很多辦公室相關曝險。而我不確定全國性的預測是否能充分反映這些投資組合的情況。所以我們對這些投資組合做了更高一些的壓力測試。

(Operator Instructions) Andrew Terrell, Stephens.

(接線員指示) Andrew Terrell，Stephens。

I just wanted to start on the operating expenses. It looks like holding the amortization side relatively flat quarter on quarter. We annualize the first quarter kind of tracks to low end of your adjusted expense growth guide for '26. I'm just curious if any seasonality impacts in the first quarter.

我想先從營運費用談起。看起來攤銷部分相對於上一季維持得相當平坦。我們把第一季年化後，大致落在您對 2026 年調整後費用成長指引的低端。我只是好奇第一季是否有任何季節性因素影響。

Do you grow off this operating expense base throughout the year? Just any kind of expectation around expense run rate would be helpful.

您會在今年其餘時間以這個營運費用基礎往上成長嗎？任何關於費用執行率（run rate）的預期都會很有幫助。

Yeah. I think the first quarter was slightly lower on the comp and benefit, especially compared to year-end. Year-end, we had a little bit more in kind of the incentive compensation accruals. So that's kind of what's driving the why it's lower versus fourth quarter, for example. So we think kind of where we are now, the run rate is pretty good.

是的。我認為第一季在人事薪酬與福利方面略低，尤其是相較於年底。年底我們在獎勵性薪酬的應計上多了一些。所以這就是為什麼相較於例如第四季會比較低的原因。因此我們認為目前這個水準的費用執行率相當不錯。

We do -- we are projecting in kind of headcount, open positions, things like that. But yeah, I think it's -- I think our current kind of where we ended Q3 with the growth rates that we are projecting. That's kind of our expectation right now.

我們確實——我們在預估人頭數、開放職缺等事項。但對，我認為——我想以我們在第三季結束時的水準，搭配我們所預估的成長率，這就是我們目前的預期。

Yep. Okay. And then I wanted to ask around -- I know it's just proposed, but any thoughts behind the Fed's proposed capital rules any kind of benefit that could provide to you guys in terms of CET1 or risk-weighted release?

了解。好。接著我想問——我知道這只是提案，但對於聯準會提出的資本規則草案，您有什麼看法？它是否可能在 CET1 或風險加權資產釋放方面，為你們帶來任何好處？

Yeah. I mean we think it's -- it would be a huge win for us, obviously. We've got a decently sized mortgage portfolio with very low LTVs. So I think we'll get an upsized benefit from that. So it could be in the low kind of double-digit in terms of the reduction in risk-weighted assets for us.

是的。我的意思是，我們認為——這對我們來說顯然會是很大的利多。我們有規模不小的房貸投資組合，而且 LTV 很低。所以我認為我們會從中獲得更大的好處。因此就我們而言，風險加權資產的降低幅度可能會落在低雙位數百分比。

And anywhere from, let's call it, [150] to [175] kind of boost to our capital ratios depending on the ratio.

而資本比率方面的提升，大概可在我們的資本比率上增加約 [150] 到 [175] 個基點，視不同的比率而定。

No. Okay. Great. Yeah, that's pretty solid. If I could just ask lastly, one of your competitors commented maybe around M&A recently.

了解。好。很好。是的，這相當不錯。如果我最後再問一個問題，您的一位競爭對手最近提到可能與併購（M&A）有關的評論。

Just would love to hear kind of your thoughts on the M&A landscape today. And how you see it fitting into the puzzle for Cathay?

很想聽聽您對目前併購（M&A）環境的看法。以及您如何看待它在國泰（Cathay）整體布局中的角色？

Yeah. So for us, we're always going to kind of think about looking at things more opportunistically just based on what's presented to us. We're always going to focus more on just our organic growth and executing the business plan. If there's a candidate out there that makes sense for us. But it's not the top priority at this point. We want to just make sure we strengthen our franchise and make strategic decisions and meet the financial plan that we laid out to our investors.

是的。對我們而言，我們一向會更偏向機會式地評估，主要取決於有哪些案子呈現在我們面前。我們也一向會更專注於自身的有機成長與執行商業計畫。如果市場上有適合我們的標的，當然會考慮。但現階段這不是最高優先事項。我們希望確保強化我們的 franchise（業務版圖/經營基礎），做出策略性決策，並達成我們向投資人所提出的財務計畫。

Kelly Motta, KBW.

Kelly Motta，KBW。

Thanks for the question. Turning to fees, excluding the noise of the securities repositioning and that the other gains, core fee income still came in pretty strong. And I think in your prepared remarks, you hit on that being in part attributed to wealth management. Just wondering if you could talk a bit about that business and what you're seeing more broadly on the fee income side, is this, call it, $19 million core operating run rate is a good line that could hold or if there's kind of puts and takes there.

謝謝讓我提問。談到手續費收入，若排除證券部位調整以及其他收益的雜訊，核心手續費收入仍然相當強勁。而且我想在您事先準備的發言中提到，部分原因歸因於財富管理。想請您多談一點這項業務，以及更廣泛來看在手續費收入端您觀察到的情況；也就是說，這個約 1,900 萬美元的核心營運手續費執行率是否是個可以維持的水準，或其中是否有一些此消彼長的因素。

Kelly, our core strength in the fee income is really the sort of the wealth business that drives that income. We're obviously trying to find other ancillary fee income as well. There's things such as foreign exchange, international fee, some of our swapping fee income, but that kind of sporadic based on the rate environment as well. The treasury management functions also drive some of the fee income as well, but the bulk of it is really from the wealth side of the business.

Kelly，我們手續費收入的核心強項，確實主要來自帶動該收入的財富管理業務。我們當然也在努力尋找其他附屬性的手續費收入來源。例如外匯、國際業務手續費、以及部分換匯/交換（swap）相關的手續費收入，但那部分也會受利率環境影響而較為零星波動。資金管理（treasury management）功能也會帶來部分手續費收入，但大宗仍然是來自財富管理端的業務。

Got it. And is this $19 million, I mean, it's a step up. It's an approximate [$19 million] step up from the back half of last year. Is this a good level to kind of hold here? Or was this particularly strong. Just trying to parse out how to --

了解。那這個 1,900 萬美元——我的意思是，這是個上升。相較於去年下半年，大約提高了 [1,900 萬美元]。這是個可以大致維持的良好水準嗎？還是這一季特別強？只是想釐清一下該如何--

Yeah. We think so. I mean, we do have some new leadership in wealth. And so we think that with -- we've gotten a decent amount of referrals as well. So we're optimistic that wealth is going to hold in there kind of and how it performed in Q1.

是的。我們認為是的。我的意思是，我們在財富管理方面確實有一些新的領導團隊。而且我們也獲得了相當多的轉介。所以我們對財富管理能夠維持在第一季的表現水準感到樂觀。

Okay. Great. Most of mine have otherwise been asked and answer. So thanks for the time.

好的。很好。我其他問題大多已經有人問過也回答了。謝謝撥冗。

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。我現在把電話交回給國泰通用銀行控股（Cathay General Bancorp）管理層作結語。

I want to thank everyone for joining us and your interest in Cathay. We look forward to speaking with you on our next quarterly earnings release call.

我要感謝各位加入我們的電話會議，以及各位對國泰（Cathay）的關注。我們期待在下一次季度財報發布電話會議上再與各位交流。

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

各位女士、先生，感謝您參與今天的會議。本次簡報到此結束。您現在可以掛線。