Colony Bankcorp Inc (CBAN) 2024 Q2 法說會逐字稿

Good day, everyone, and welcome to the Colony Bank Second Quarter 2024 conference call, (Operator Instructions). Please note this call is being recorded and I will be standing by should you need any assistance.

大家好，歡迎參加殖民地銀行 2024 年第二季電話會議，（操作員說明）。請注意，此通話正在錄音，如果您需要任何幫助，我將隨時待命。

It is now my pleasure to turn the conference over to Chief Financial Officer, Derek Shelnutt. Please go ahead.

現在我很高興將會議交給財務長 Derek Shelnutt。請繼續。

Thanks, Nicky. Before we get started, I would like to go through our standard disclosures. Certain statements we make on this call could be constituted as forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934.

謝謝，尼基。在我們開始之前，我想先回顧一下我們的標準揭露。我們在本次電話會議中所做的某些陳述可能構成 1933 年《證券法》和 1934 年《證券交易法》含義內的前瞻性陳述。

Current and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance but involve known and unknown risks and uncertainties. Factors that could cause these differences include, but are not limited to, pandemics, variations of the company's assets, businesses, cash flows, financial condition, prospects and other results of operations.

目前和潛在投資者請注意，任何此類前瞻性陳述都不是對未來績效的保證，而是涉及已知和未知的風險和不確定性。可能導致這些差異的因素包括但不限於流行病、公司資產、業務、現金流量、財務狀況、前景和其他經營績效的變化。

I would also like to add that during our call today, we will reference both our earnings release and our quarterly investor presentation, both of which were filed yesterday. So please have those available to reference.

我還想補充一點，在今天的電話會議中，我們將參考昨天提交的收益報告和季度投資者報告。所以請提供這些可供參考。

And with that, I will turn the call over to our Chief Executive Officer, Heath Fountain.

接下來，我會將電話轉給我們的執行長 Heath Fountain。

Thanks, Derek, and thanks to everyone joining our second quarter earnings call today. We're pleased with our improved operating results in the second quarter and we appreciate the hard work from our team members, which has allowed us to continue to achieve progress towards our strategic goals.

謝謝德里克，也感謝今天參加我們第二季財報電話會議的所有人。我們對第二季經營績效的改善感到滿意，並感謝團隊成員的辛勤工作，這使我們能夠繼續在實現策略目標方面取得進展。

Operating net income increased close to $200,000 during the quarter as we continue to see improved performance from our complementary lines of business. All were profitable in the quarter with the exception of Marine-RV lending which improved quarter-over-quarter but was held back by sluggish sales in that industry.

由於我們繼續看到互補業務線的業績有所改善，本季營業淨利潤增加了近 20 萬美元。本季所有業務均實現盈利，但船用房車貸款除外，該貸款環比有所改善，但受到該行業銷售低迷的阻礙。

Net interest income decreased slightly during the quarter and was driven by a continued increase in our funding costs, albeit at a slower pace than in recent quarters. Loan growth was relatively low this quarter. As we've mentioned previously, our loan growth expectations were modest for the year. We do see our loan pipelines increasing and we do expect a little more growth in the second half of the year.

本季淨利息收入略有下降，這是由於我們的融資成本持續增加所致，儘管增幅低於最近幾季。本季貸款成長相對較低。正如我們之前提到的，我們對今年的貸款成長預期適度。我們確實看到我們的貸款管道增加，並且預計下半年會有更多成長。

Margin declined 1 basis point during the quarter, which was a little better than our expectations of a 3 to 5 basis point decline. We still expect margin to improve in the second half of the year and Derek is going to speak in more detail to that later in the call.

本季利潤率下降 1 個基點，略優於我們預期的下降 3 至 5 個基點。我們仍然預計下半年利潤率將有所改善，德里克將在稍後的電話會議中對此進行更詳細的討論。

There was some seasonality in our deposit base in the second quarter. Historically, it's not unusual pre-COVID for us to see declines in the second quarter, a large portion of the decline this quarter was related to tax payments from a small number of large depositors and of course, we generally would expect to see those balances come back later in the year. And we also were able to reduce our brokered CD levels this quarter.

第二季我們的存款基礎存在一些季節性。從歷史上看，在新冠疫情之前，我們看到第二季度的下降並不罕見，本季度下降的很大一部分與少數大儲戶的納稅有關，當然，我們通常預計會看到這些餘額今年晚點時候回來。本季我們也降低了經紀 CD 水準。

Our focus remains on deposits first and our bankers continue to develop relationships that include deposits and other opportunities. We are believers that the value created in banking is based on the deposit relationships we can build and so that's our primary focus.

我們的重點仍然是首先關注存款，我們的銀行家繼續發展包括存款和其他機會在內的關係。我們相信銀行業創造的價值是基於我們可以建立的存款關係，因此這是我們的首要關注點。

Credit quality remained strong. Classified and criticized loans decreased during the quarter and those figures are available on Page 18 in the earnings release. At the end of the quarter, past dues were at very low levels. We had zero past due CRE loans at the end of the quarter. We have confidence in the credit quality of our portfolio and we're not really seeing any areas at this time that gives us concerns about potential weakening.

信貸品質依然強勁。本季度分類和批評貸款有所減少，這些數據可在收益發布的第 18 頁上找到。截至本季末，逾期未付款項處於非常低的水平。截至本季末，我們的商業房地產逾期貸款為零。我們對投資組合的信用品質充滿信心，目前我們並沒有真正看到任何領域讓我們擔心潛在的疲軟。

Our mortgage banking group was profitable in the second quarter and had its most profitable quarter since we started this rate cycle. We started seeing more activity during the home buying season this spring, but we're seeing still low inventory levels have an impact on volume. But the outlook on rate stability and the market adjusting to the current level of rates are starting to help drive activity. And we continue to adjust our product offering and staffing to remain competitive in the market and to remain profitable in this line.

我們的抵押貸款銀行集團在第二季度實現了盈利，並且是自我們開始本利率週期以來盈利最高的季度。今年春季的購屋季期間，我們開始看到更多的活動，但我們發現庫存水準仍然較低，對成交量有影響。但利率穩定性的前景以及市場對當前利率水準的調整正開始幫助推動經濟活動。我們繼續調整我們的產品供應和人員配置，以保持市場競爭力並保持該產品線的利潤。

Our small business and specialty lending division had another great quarter. We've seen a lot of success from our small dollar loan program and these will continue to be a good source of revenue for our SBSL Group. There is some slowdown expected in that going forward as we've seen many new entrants into that marketplace.

我們的小型企業和專業貸款部門又度過了一個出色的季度。我們的小額貸款計劃取得了巨大成功，這些將繼續成為我們 SBSL 集團的良好收入來源。由於我們看到許多新進入者進入該市場，因此預計未來的發展速度將會放緩。

And so while we expect to see revenue continue and this be a good product for us, it will not likely be at the same levels that we've seen in the first half of this year and we keep continue to focus on our core SBA loan customers and maintain a consistent pipeline in those products as well.

因此，雖然我們預計收入會持續增長，而且這對我們來說是一個很好的產品，但它不太可能達到我們今年上半年看到的水平，我們將繼續專注於我們的核心 SBA 貸款客戶並保持這些產品的一致管道。

Expenses were in line with our expectations and I think our team has done an outstanding job of maintaining efficiency and expense discipline over the last year. Our operating net non-interest expense to average assets was 1.36% for the quarter and it's shown at the bottom of Page 8 in the earnings release. Since we have multiple sources of non-interest income, we use this metric as a way to compare our non-interest expense to peers.

費用符合我們的預期，我認為我們的團隊去年在保持效率和費用紀律方面做得非常出色。本季我們的營業非利息淨支出與平均資產之比為 1.36%，該數據顯示在收益發布第 8 頁的底部。由於我們有多種非利息收入來源，因此我們使用此指標來將我們的非利息支出與同業進行比較。

And we've moved in the peer group we measure from the bottom quartile in that group to the top quartile over the past year and we expect to stay there.

在過去的一年裡，我們已經將我們衡量的同儕群體從該群體中的底部四分之一上升到了頂部四分之一，並且我們希望保持這一水平。

Our commitment to our markets is important to us. And although we mean we focus on remaining disciplined with our expenses, we managed that with the long-term benefits of continuing to invest in innovation, technology and in our markets.

我們對市場的承諾對我們很重要。儘管我們的意思是我們專注於保持開支紀律，但我們透過繼續投資創新、技術和市場來實現長期利益。

Over the past few months, we've added experienced bankers to several of our markets based on needs and in some markets for transitions for upcoming retirements. We're excited to have these new team members on board and look forward to the positive impacts that they're going to have on our customers and our communities.

在過去的幾個月裡，我們根據需要向幾個市場添加了經驗豐富的銀行家，並在一些市場中為即將到來的退休人員進行了過渡。我們很高興這些新團隊成員加入，並期待他們將對我們的客戶和社區產生積極影響。

And lastly, I'd just like to recognize two of our Board members who retired this past quarter, Jonathan Ross, who served as a director since 2007, and Harold Wyatt, who served as a director with us since 2021 and previously served as a Director of SouthCrest Financial Group for many years before its merger with Colony. We wish them well and like to thank them for their leadership and their service to our shareholders, our team members, our customers and our communities.

最後，我想表彰上季度退休的兩位董事會成員：喬納森·羅斯(Jonathan Ross)，自2007 年起擔任董事；哈羅德·懷亞特(Harold Wyatt)，自2021 年起擔任我們的董事，此前曾擔任在與 Colony 合併之前，擔任 SouthCrest Financial Group 董事多年。我們祝福他們一切順利，並感謝他們的領導以及他們為我們的股東、團隊成員、客戶和社區提供的服務。

And with that, I'm going to turn it over to Derek, who will go over the financials in more detail.

接下來，我將把它交給德里克，他將更詳細地討論財務狀況。

Thank you, Heath. Both GAAP and operating net income increased during the quarter with operating net income increasing by a little over $170,000 as a result of increased non-interest income and lower provision expense driven by improvement in credit quality.

謝謝你，希斯。本季 GAAP 和營業淨利潤均有所增長，由於信貸品質改善導致非利息收入增加和撥備費用下降，營業淨利潤增加略高於 170,000 美元。

Interest income increased slightly over quarter-over-quarter with interest income on loans increasing by about $500,000. Interest income from investment securities decreased in the quarter, partially by the redeployment of principal payments to fund loans or pay down borrowings, but largely due to a onetime accelerated premium recognition on an early payoff of a security, which decreased overall investment income. That impact was about $250,000 and without that, net interest income would have been flat quarter-over-quarter.

利息收入較上季略有成長，貸款利息收入增加約 50 萬美元。本季度投資證券的利息收入有所下降，部分原因是本金支付重新部署以資助貸款或償還借款，但主要是由於對證券提前還款的一次性加速溢價確認，從而減少了總體投資收入。這一影響約為 25 萬美元，如果沒有這一影響，淨利息收入將環比持平。

Interest expense on deposits increased from the first quarter, but we are still seeing the rate of that increase slow down. And as Heath mentioned, margin declined one basis point and that was better than our expectations for the quarter. We still believe margin will start to expand in the second half of the year, but the exact timing will depend on several factors, including deposit competition and cost, loan fundings as well as any interest rate changes.

存款利息支出較一季增加，但我們仍看到增幅放緩。正如希思所提到的，利潤率下降了一個基點，這比我們對本季的預期要好。我們仍然相信利潤率將在下半年開始擴大，但具體時間將取決於幾個因素，包括存款競爭和成本、貸款資金以及利率變化。

With margin declining only one basis point per quarter since the fourth quarter of 2023, we feel comfortable that we are at or very close to the bottom. Any further decline is likely to only be a basis point or so. But we feel better about margin being in the midst of turning the quarter and seeing the next quarter margin being flat or up a few basis points.

自 2023 年第四季以來，利潤率每季僅下降一個基點，我們對目前處於或非常接近底部感到滿意。任何進一步的下跌可能只是一個基點左右。但我們對本季利潤率的感覺更好，並看到下個季度的利潤率持平或上升幾個基點。

Operating noninterest income increased from the prior quarter by $77,000, both our [SBSL] and mortgage income increased quarter-over-quarter, while other noninterest income declined, but that was due to onetime items in the first quarter related to BOLI and OREO.

營業非利息收入較上一季增加了77,000 美元，我們的[SBSL] 和抵押貸款收入均環比增長，而其他非利息收入下降，但這是由於第一季與BOLI 和OREO 相關的一次性項目所致。

Non-interest expense remained stable quarter-over-quarter, decreasing $67,000. As Heath mentioned, we are still focused on appropriately managing expenses relative to our growth expectations. And our operating net NIE to assets improved 2 basis points in the quarter and was 4 basis points better than our target of 1.40%. While we still look for efficiency with expenses, continued progress in our complementary lines of business should keep us close to or better than our net NIE target.

非利息支出較上季保持穩定，減少 67,000 美元。正如希思所提到的，我們仍然專注於根據我們的成長預期適當管理費用。本季我們的營運淨 NIE 與資產之比提高了 2 個基點，比我們 1.40% 的目標高出 4 個基點。雖然我們仍在尋求費用效率，但我們互補業務領域的持續進展應該使我們接近或優於我們的淨 NIE 目標。

Provision expense totaled $650,000 for the quarter. Slower loan growth in the quarter was a contributor, but we also saw some credit improvement this quarter with a decrease in classified and criticized loans. As Heath mentioned, past dues were at low levels, which includes zero past dues on CRE loans on the bank side and a decrease in nonperforming and we've seen a decrease in nonperforming loans since the end of last year.

本季撥備費用總計 65 萬美元。本季貸款成長放緩是一個原因，但我們也看到本季信貸有所改善，分類和批評貸款減少。正如希思所提到的，逾期未付款處於較低水平，其中包括銀行方面商業地產貸款的逾期為零以及不良貸款的減少，自去年年底以來，我們看到不良貸款有所減少。

Net charge-offs were relatively flat and similar to last quarter. The majority of the charge-offs were related to the unguaranteed portion of SBA loans. The SBA small dollar loans represent most of the charge-offs and these loans do have a higher premium when they're sold, which offsets the higher losses.

淨沖銷相對持平，與上季相似。大部分沖銷與 SBA 貸款的無擔保部分有關。SBA 小額貸款佔沖銷的大部分，這些貸款在出售時確實有較高的溢價，這抵消了較高的損失。

Total loans held for investment increased $6.6 million from the prior quarter. As we mentioned on our last call, our pipeline suggests more growth in the second half of the year, but still at modest levels. Demand credit appetite, rates and funding are all going to influence the exact level of growth we end up seeing.

持有的投資貸款總額比上一季增加了 660 萬美元。正如我們在上次電話會議中提到的，我們的管道表明下半年會有更多成長，但仍處於適度水平。需求信貸偏好、利率和融資都將影響我們最終看到的具體成長水準。

We still have opportunities this year for repricing on loans. There are about $50 million to $60 million with maturities through the end of the year that are currently priced at 5% or lower. So we should see some benefit from that going forward.

今年我們仍有機會重新定價貸款。大約有 5,000 萬至 6,000 萬美元的債券將於今年底到期，目前的利率為 5% 或更低。因此，我們應該會從中看到一些好處。

Total deposits were lower by about $62.5 million, of which $22 million were broker deposit paydowns. And when you look at our deposit data pre-COVID, you typically see some seasonality and lower second quarter average deposits. Then you see those deposits return in the latter half of the year.

總存款減少約 6,250 萬美元，其中 2,200 萬美元是經紀人存款支付。當您查看新冠疫情之前的存款資料時，您通常會看到一些季節性因素和較低的第二季平均存款。然後你會看到這些存款在下半年回歸。

We did see some large outflows for tax payments from some of our larger depositors. We've also seen seasonal supply and raw material purchases from our manufacturing and agricultural depositors. We are still focused heavily on deposits.

我們確實看到一些較大儲戶的稅款大量外流。我們也看到製造業和農業儲戶的季節性供應和原材料購買。我們仍然高度關注存款。

FHLB advances increased in the quarter by $50 million. We took advantage of the inverted curve where we saw some opportunity to get some cheaper funding. Additionally, a portion of that was short term and the more attractive short-term pricing allowed us to shift out of the higher rate brokered CDs.

FHLB 預付款在本季增加了 5,000 萬美元。我們利用了倒轉曲線的優勢，看到了一些獲得更便宜資金的機會。此外，其中一部分是短期的，更具吸引力的短期定價使我們能夠擺脫利率較高的經紀 CD。

This quarter, we continued our strategy of selling underperforming investments in the portfolio and redeploying those proceeds into higher-yielding assets and those results are summarized on Slide 29. We sold approximately $9.3 million worth of securities, which included a loss of $425,000. The book yield was 3.26% and our earn-back estimates are around two years or less. We expect the continued similar restructures in the future and as appropriate and as market conditions allow.

本季度，我們繼續實施出售投資組合中表現不佳的投資並將這些收益重新部署到收益更高的資產的策略，這些結果總結在投影片 29 中。我們出售了價值約 930 萬美元的證券，其中包括 42.5 萬美元的損失。帳面收益率為 3.26%，我們的獲利回收預期約為兩年或更短。我們預計未來將在適當且市場條件允許的情況下繼續進行類似的重組。

During the quarter, as part of our stock repurchase program, we repurchased 20,000 shares for an average price of $11.90 and a total value of about $238,000. Yesterday, the board declared a quarterly cash dividend of $0.1125 per share. We understand our dividend is important to many of our investors and continuing our dividend represents the faith we have in the strength of our earnings.

本季度，作為股票回購計畫的一部分，我們回購了 20,000 股股票，平均價格為 11.90 美元，總價值約為 238,000 美元。昨天，董事會宣布季度現金股利為每股 0.1125 美元。我們知道我們的股息對我們的許多投資者來說很重要，持續發放股息代表了我們對獲利實力的信心。

Mortgage net income was $138,000 for the second quarter, an increase of $152,000 from the prior quarter. We've seen some increase in the volume during the home buying season but being held back slightly by home affordability and inventory.

第二季抵押貸款淨收入為 138,000 美元，比上一季增加 152,000 美元。我們看到購屋季節期間成交量有所增加，但受到房屋負擔能力和庫存的輕微抑制。

We believe mortgage will continue to improve and be profitable on a go-forward basis. There's a lot of potential due to pent-up demand and if we see rates come down a little, we would expect to see more profit growth along with an increase in volume.

我們相信抵押貸款將繼續改善並在未來的基礎上實現盈利。由於被壓抑的需求，存在著很大的潛力，如果我們看到利率略有下降，我們預計利潤會隨著銷量的增加而增長。

Our small business specialty lending division had a net income of $1.3 million during the quarter. That's a $459,000 increase from the prior quarter. The small dollar program has been successful and will continue to be a great product for that line of business, but as Heath mentioned, there have been new entrants to that market. And although premiums are still attractive, they've come down a little bit from their highs.

我們的小型企業專業貸款部門本季淨利潤為 130 萬美元。比上一季增加了 459,000 美元。小額計劃已經取得了成功，並將繼續成為該業務線的出色產品，但正如希思所提到的，該市場出現了新的進入者。儘管保費仍具有吸引力，但已較高點有所下降。

Going forward, we think this is still going to be a great product, but the related revenue will likely be a tad softer. The pipeline for core loans is still in good shape and has remained an important part of that business.

展望未來，我們認為這仍然是一款出色的產品，但相關收入可能會稍微疲軟。核心貸款管道仍處於良好狀態，並且仍然是該業務的重要組成部分。

On Slide 8, we provide a breakdown of pretax income for our complementary lines of business. Our Marine and RV division continues to see loan growth, although it is slower than what we originally expected due to sluggish sales in the industry this season. The division is still trending towards profitability, but that may not occur for another quarter or two.

在投影片 8 中，我們提供了互補業務的稅前收入明細。我們的船舶和房車部門的貸款持續成長，儘管由於本季行業銷售低迷，貸款成長速度低於我們最初的預期。該部門仍處於獲利趨勢，但可能再過一兩個季度就不會實現盈利。

Merchant Services had their first profitable quarter and referrals have been strong. We are excited about the progress and expect to see that continue. The second quarter was lighter for our insurance division. In the first quarter and early in the second quarter, the insurance industry overall saw tighter underwriting requirements and a lower risk appetite.

商業服務迎來了第一個獲利季度，推薦量也很強勁。我們對所取得的進展感到興奮，並期望看到這種情況繼續下去。我們的保險部門第二季的情況較為清淡。第一季和第二季初，保險業整體承保要求收緊，風險偏好下降。

We did see that relax near the end of the quarter and we remain optimistic about the rest of the year. Bank referrals have been increasing and we feel like we're going to start seeing the benefits of those. The division also invested and grow in the business during the second quarter, which had some upfront expenses associated with it.

我們確實看到這種情況在本季末有所放鬆，並且我們對今年剩餘時間保持樂觀。銀行推薦一直在增加，我們覺得我們將開始看到這些的好處。該部門還在第二季度對該業務進行了投資和成長，其中有一些與之相關的前期費用。

That concludes my overview and now I'll turn it back over to Heath for any final comments before we take questions.

我的概述到此結束，現在在我們回答問題之前，我會將其轉回 Heath 以徵求最終意見。

Thanks, Derek. That wraps our remarks up. And with that, I'll call on Nicky to open up the lines for questions.

謝謝，德里克。我們的發言到此結束。接下來，我將請尼基打開提問專線。

(Operator Instructions).

（操作員說明）。

Justin Marco With Hovde Group,

賈斯汀馬可 (Justin Marco) 與 Hovde 集團合作，

Hey Guy's, Good morning On for Dave Bishop today. So you mentioned in your prepared remarks that pipelines are increasing. Any particular segments where you're seeing good opportunities? And how are your overall growth prospects looking for say the next 18 months?

嘿，蓋伊，早安，今天是戴夫·畢肖普。所以你在準備好的發言中提到管道正在增加。您在哪些特定領域看到了良好的機會？未來 18 個月您的整體成長前景如何？

Yeah, it's really. I think across the board, we are seeing a pretty diversified amount. We do have obviously, we're and if you look at our portfolio is largely real estate. And so we do have some nice opportunities on the commercial real estate front and we have the appetite and capacity there. Our ultimate goals. We like them trying to grow 8% to 12% a year.

是的，確實如此。我認為總體而言，我們看到的數量相當多樣化。顯然，我們確實有，如果你看看我們的投資組合主要是房地產。因此，我們在商業房地產方面確實有一些很好的機會，而且我們有這方面的胃口和能力。我們的最終目標。我們喜歡他們嘗試每年增長 8% 到 12%。

Certainly, we don't expect to see that this year. I think our volumes were down in Q1 and then up slightly this quarter and maybe in like 1% annualized range, if we could have potentially next couple of quarters, maybe see closer to 5% type annualized growth likely and then, you know, given the economic outlook right now and what things look like potentially leading into some higher single digit growth as we go into next year.

當然，我們預計今年不會出現這種情況。我認為我們的銷量在第一季有所下降，然後在本季度略有上升，年化成長率可能在1% 左右，如果我們有可能在未來幾季實現年化成長，可能會看到接近5% 的年化成長，然後，你知道，考慮到當前的經濟前景以及明年可能導致更高個位數成長的情況。

Okay. And it sounds like a NIM trough might be in sight. How are you feeling about overall deposit costs and loan yields for the second half and into '25? And do you have any rate cuts baked into those projections?

好的。聽起來 NIM 低谷可能就在眼前。您對下半年和 25 世紀的整體存款成本和貸款收益率有何看法？這些預測中是否有降息？

So we feel good about where we are. We don't try to predict the rate cut. So we feel like our NIM return is going to come back regardless of rate drops. So we're thinking rate stability in our outlook. And as Derek mentioned in his remarks, a lot is just going to depend on funding pressure and on loan growth, we've got a lot of repricings coming up.

所以我們對自己所處的位置感覺良好。我們不會嘗試預測降息。因此，我們認為，無論利率如何下降，我們的淨利差回報都會回來。因此，我們的前景是利率穩定。正如德里克在演講中提到的那樣，很大程度上取決於融資壓力和貸款成長，我們即將進行許多重新定價。

So we have a lot of the pressures lightening up on the deposit side. And on the loan side, we've got a lot that will reprice anyway and with a little bit of growth, that will improve. Derek, do you have any other thing to add to that?

因此，存款方面的壓力減輕了很多。在貸款方面，我們有很多貸款無論如何都會重新定價，只要有一點成長，情況就會有所改善。德瑞克，你還有什麼要補充的嗎？

I agree. Just to add some additional color. We're continuing to see asset repricing through both the loan portfolio and the securities portfolio. And that's been pretty steady. And we have a lot of opportunity there.

我同意。只是為了添加一些額外的顏色。我們繼續透過貸款投資組合和證券投資組合看到資產重新定價。這一直相當穩定。我們在那裡有很多機會。

Again, our cost of funds, our deposit cost has been steadily slowing down in terms of rate of increase and any Fed rate cuts that we may or may not see will have an impact on that, probably not drop it, but definitely slow it down even further. And so that's just going to help our overall funding costs and allow the assets to reprice faster. And then at that point, we'll start seeing margin expansion.

同樣，我們的資金成本、我們的存款成本在成長率方面一直在穩步放緩，我們可能會或可能不會看到的任何聯準會降息都會對此產生影響，可能不會下降，但肯定會減慢速度甚至更進一步。因此，這將有助於我們的整體融資成本並使資產更快地重新定價。到那時，我們將開始看到利潤率擴張。

And again, I think we expect that to happen probably in the second half of this year at some point, even without any rate cuts and then continue on into '25.

再說一次，我認為我們預計這可能會在今年下半年的某個時候發生，即使沒有任何降息，然後持續到 25 年。

Great. Thanks for taking my questions today.

偉大的。感謝您今天回答我的問題。

Thank you.

謝謝。

(Operator Instructions).

（操作員說明）。

You and we show no further questions at this time, I will turn the program back to our presenters, any closing or additional remarks.

您和我們此時不會提出任何進一步的問題，我會將節目回傳給我們的主持人，包括任何結束語或附加評論。

Thanks again, everyone, for being on the call today. We appreciate your support of Colony Bancorp, and we appreciate you being on the call.

再次感謝大家今天接受電話訪問。我們感謝您對 Colony Bancorp 的支持，也感謝您的來電。

And this does conclude today's program. Thank you for your participation. You may disconnect at any time. On behalf of our client, we would like to thank you for joining. This concludes the program.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。我們謹代表我們的客戶感謝您的加入。程式到此結束。