Community Financial System Inc (CBU) 2023 Q1 法說會逐字稿

Welcome to the Community Bank System First Quarter 2023 Earnings Conference.

歡迎參加社區銀行系統2023年第一季度收益會議。

Please note that this presentation contains forward-looking statements within the provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates and projections about the industry, markets and economic environment in which the company operates. Such statements involve risks and uncertainties that could cause actual results to differ materially from the results discussed in these statements. These risks are detailed in the company's annual report and Form 10-K filed with the Securities and Exchange Commission. Please note, this conference is being recorded.

請注意，本演示文稿包含 1995 年《私人證券訴訟改革法案》條款中的前瞻性陳述，這些陳述基於對公司運營所在行業、市場和經濟環境的當前預期、估計和預測。此類陳述涉及風險和不確定性，可能導致實際結果與這些陳述中討論的結果存在重大差異。這些風險在公司向美國證券交易委員會提交的年度報告和 10-K 表格中有詳細說明。請注意，本次會議正在錄製中。

Today's call presenters are Mark Tryniski, President and Chief Executive Officer; and Joseph Sutaris, Executive Vice President and Chief Financial Officer. They will be joined by Dimitar Karaivanov, Executive Vice President and Chief Operating Officer, for the question-and-answer session.

今天的電話會議主持人是總裁兼首席執行官 Mark Tryniski；執行副總裁兼首席財務官 Joseph Sutaris。執行副總裁兼首席運營官 Dimitar Karaivanov 將與他們一起參加問答環節。

Gentlemen, you may begin.

先生們，你們可以開始了。

Thank you. Good morning, everyone, and thank you for joining our first quarter conference call. Certainly, it has been an eventful quarter for the industry. I typically comment on our earnings first, but it feels like I should start with the balance sheet. First off, the events of the weekend of March 10 had virtually no impact on us beyond the minimal level of customer inquiries. We proactively reached out to our larger consumer commercial and municipal customers with no movement at all in those deposits or relationships.

謝謝。大家早上好，感謝您參加我們的第一季度電話會議。當然，對於該行業來說，這是一個多事的季度。我通常首先評論我們的收益，但感覺我應該從資產負債表開始。首先，3 月 10 日週末發生的事件除了最低限度的客戶詢問外，對我們幾乎沒有任何影響。我們主動接觸了規模較大的消費商業和市政客戶，但這些存款或關係沒有任何變化。

Total deposits were actually up almost $100 million during the quarter, mostly CDs, with the mix otherwise being remarkably consistent. Our uninsured deposits are 17% of total deposits, and our average consumer and commercial account balances are $12,000 and $60,000, respectively. We have no broker or wholesale deposits of any kind. We did need to move rates in the quarter, which raised our deposit funding costs up to 31 basis points. And as of the end of March, our full cycle deposit beta is 5%. Joe will speak further on this topic, but we have $4.7 billion of immediately available liquidity.

本季度總存款實際上增加了近 1 億美元，其中大部分是 CD，除此之外的其他存款結構都非常一致。我們的無保險存款佔總存款的 17%，我們的平均消費者和商業賬戶餘額分別為 12,000 美元和 60,000 美元。我們沒有任何類型的經紀人或批發存款。我們確實需要在本季度調整利率，這將我們的存款融資成本提高了 31 個基點。截至 3 月底，我們的全週期存款貝塔值為 5%。喬將進一步討論這個話題，但我們有 47 億美元的即時可用流動性。

Loan growth in the quarter was solid at $173 million, mostly business and auto lending, and asset quality remains exceptional. Earnings for the quarter were lower than we expected due mainly to expenses and the elimination of some retail fees, both of which Joe will discuss further. But year-over-year, we delivered greater net interest income and record revenues from our nonbanking businesses, which continued to grow despite capital market conditions.

本季度貸款增長穩定，達到 1.73 億美元，主要是商業和汽車貸款，資產質量仍然出色。該季度的收益低於我們的預期，主要是由於費用和取消一些零售費用，喬將進一步討論這兩個問題。但與去年同期相比，我們的非銀行業務實現了更高的淨利息收入和創紀錄的收入，儘管資本市場條件不佳，但非銀行業務的收入仍在持續增長。

Looking ahead, we think our funding and liquidity are really well positioned, and we have another $350 million of treasury securities maturing next month that will be additive to margin and earnings. We have one of the best deposit bases of any bank in the U.S. Our lending businesses are all executing really well, and we expect that to continue. Credit quality remains exceptional, and our lending portfolios are highly diversified and highly granular, and our nonbanking businesses continued to grow despite capital market conditions. So I think we are extremely well positioned for the future and expect our [performance] to reflect that regardless of the operating environment.

展望未來，我們認為我們的資金和流動性確實處於有利位置，並且我們還有另外 3.5 億美元的國債將於下個月到期，這將增加利潤和收益。我們擁有美國銀行中最好的存款基礎之一。我們的貸款業務都執行得非常好，我們預計這種情況將持續下去。信貸質量仍然出色，我們的貸款組合高度多元化和高度精細，儘管資本市場條件不佳，我們的非銀行業務仍持續增長。因此，我認為我們為未來做好了充分的準備，並希望我們的[業績]能夠反映出這一點，無論運營環境如何。

Joe?

喬？

Thank you, Mark, and good morning, everyone. As Mark noted, fully diluted GAAP earnings per share were $0.11 in the quarter. This compares to a fully diluted GAAP earnings per share of $0.86 in the first quarter 2022 and $0.97 in the linked fourth quarter of 2022. During the quarter, the company strategically repositioned its balance sheet by selling available-for-sale investment securities with a market value of $733.8 million, the proceeds of which were used to pay down expensive overnight borrowings to provide the company with greater flexibility to manage balance sheet growth and deposit funding.

謝謝你，馬克，大家早上好。正如 Mark 指出的那樣，本季度完全攤薄後的 GAAP 每股收益為 0.11 美元。相比之下，2022 年第一季度完全攤薄後的 GAAP 每股收益為 0.86 美元，2022 年第四季度為 0.97 美元。在本季度，該公司通過向市場出售可供出售的投資證券來戰略性地重新定位其資產負債表。價值 7.338 億美元，所得收益用於償還昂貴的隔夜借款，為公司提供更大的靈活性來管理資產負債表增長和存款資金。

In connection with the repositioning, the company recognized a pretax realized loss on sale of $52.3 million, resulting in a $0.75 per share after-tax loss on the sale. Excluding the loss on the sale of investment securities, acquisition-related expenses and gain on debt extinguishment, the company's fully diluted operating earnings per share for the quarter were -- was $0.86. This compares to $0.87 of fully diluted operating earnings per share in the first quarter of 2022 and $0.96 in the linked fourth quarter.

與重新定位相關，該公司確認了 5230 萬美元的稅前已實現銷售虧損，導致每股稅後銷售虧損 0.75 美元。不包括投資證券銷售損失、收購相關費用和債務清償收益，該公司本季度完全攤薄後的每股運營收益為 0.86 美元。相比之下，2022 年第一季度完全攤薄後的每股營業收益為 0.87 美元，第四季度為 0.96 美元。

The $0.01 decrease in operating earnings per share on a year-over-year basis was driven by a decrease in banking-related noninterest revenues, an increase in the provision for credit losses and higher operating expenses, partially offset by increases in net interest income, and financial services business revenues and decreases in income taxes and fully diluted shares outstanding. $0.10 per share decrease in operating earnings per share on a linked quarter basis was largely driven by an increase in operating expenses and lower deposit service fees.

每股營業利潤同比下降 0.01 美元，原因是銀行相關非利息收入減少、信貸損失撥備增加以及營業費用增加，但部分被淨利息收入增加所抵消，金融服務業務收入以及所得稅和完全稀釋的已發行股票的減少。每股營業利潤環比下降 0.10 美元，主要是由於營業費用增加和存款服務費下降。

First quarter 2023 adjusted pretax preprovision net revenue per share, which is a non-GAAP measure as defined in our earnings release of $1.16, was up $0.04 as compared to the first quarter of 2022 and down $0.13 compared to fourth quarter of 2022.

2023 年第一季度調整後稅前撥備每股淨收入（我們的收益發布中定義的非公認會計準則衡量標準為 1.16 美元）比 2022 年第一季度增長了 0.04 美元，比 2022 年第四季度下降了 0.13 美元。

The company recorded total revenues of $124.5 million in the first quarter of 2023, a decrease of $36 million or 22.4% from the prior year's first quarter. The decrease in total revenues between the periods was primarily driven by the previously mentioned loss on sale of securities during the quarter. Total operating revenues, which excludes net realized and unrealized securities gains and losses and gain on debt extinguishment were $176.6 million in the first quarter of 2023, an increase of $16.1 million or 10% from the prior year's first quarter, driven primarily by an increase in net interest income. Comparatively, total revenues were down $51.4 million or 29.2% from the fourth quarter of 2022 results but up $0.7 million or 0.4% on an operating basis.

該公司2023年第一季度總收入為1.245億美元，比去年第一季度減少3600萬美元，降幅為22.4%。各時期總收入的下降主要是由於前面提到的本季度證券銷售損失所致。 2023 年第一季度的總營業收入（不包括已實現和未實現的證券損益以及債務清償收益）為 1.766 億美元，比上年第一季度增加 1610 萬美元，即 10%，這主要是由於淨利息收入。相比之下，總收入較 2022 年第四季度業績下降 5140 萬美元，即 29.2%，但營業收入增長 70 萬美元，即 0.4%。

The company recorded net interest income of $111 million in the first quarter of 2023. This was up $16.2 million or 17% over the prior year's first quarter. The company's tax equivalent net interest margin increased by 47 basis points from 2.73% in the first quarter of 2022 to 3.20% in the first quarter of 2023. The tax equivalent yield on average interest-earning assets was up 82 basis points over the prior year's first quarter while the average cost of funds increased 35 basis points over the same period. Comparatively, the company's net interest margin increased 18 basis points on a linked quarter basis, while net interest income decreased $1.2 million due in part to a lower day count in the quarter.

該公司 2023 年第一季度的淨利息收入為 1.11 億美元。這比去年第一季度增加了 1620 萬美元，即 17%。公司稅等淨利息收益率由20​​22年一季度的2.73%上升47個基點至2023年一季度的3.20%。平均生息資產稅等收益率較上年上升82個基點而一季度平均資金成本較同期上升35個基點。相比之下，該公司的淨息差環比增長了 18 個基點，而淨利息收入減少了 120 萬美元，部分原因是該季度天數減少。

Excluding the impact of a loss on sale of investment securities and the gain on debt extinguishment, noninterest revenues decreased $0.1 million between the comparable annual quarters. A $1.1 million increase in insured services revenues in the quarter was offset by a $0.6 million decrease in banking-related revenues, a $0.2 million decrease in employee benefit services revenues and a $0.4 million decrease in wealth management revenues.

排除投資證券銷售損失和債務清償收益的影響，非利息收入比可比年度季度減少了 10 萬美元。本季度保險服務收入增加 110 萬美元，但被銀行相關收入減少 60 萬美元、員工福利服務收入減少 20 萬美元以及財富管理收入減少 40 萬美元所抵消。

The decrease in banking-related noninsurance revenues was driven by a decrease in debit interchange revenues and overdraft occurrences as well as the recent implementation of certain deposit fee changes, including the elimination of nonsufficient funds and available funds fees. Despite the organic growth in the employee benefit services, [insurance services] business and wealth management businesses, revenues were down due to market-related headwinds.

銀行相關非保險收入的下降是由於借記互換收入和透支發生率的下降以及最近實施的某些存款費用變化（包括取消資金不足和可用資金費用）造成的。儘管員工福利服務、[保險服務]業務和財富管理業務實現有機增長，但由於市場相關不利因素，收入出現下降。

On a linked-quarter basis, noninterest revenues, excluding the loss on the sale of securities and gain on debt extinguishment increased $1.9 million or 2.9%. An increase in revenues in all 3 of the financial services businesses totaling $4.4 million or 10% was partially offset by a $2.6 million or 13.6% decrease in banking-related noninterest revenues.

按季度計算，不包括證券銷售損失和債務清償收益的非利息收入增加了 190 萬美元，即 2.9%。所有 3 項金融服務業務的收入增長總計 440 萬美元（即 10%），但被銀行相關非利息收入減少 260 萬美元（即 13.6%）部分抵消。

During the first quarter of 2023, the company recorded a provision for credit losses of $3.5 million, driven by a weaker economic forecast combined with $172.9 million increase in loans outstanding. Comparatively, the company recorded a provision for credit losses of $0.9 million during the first quarter of 2022 and $2.8 million in the fourth quarter of 2022.

2023 年第一季度，由於經濟預測疲弱以及未償還貸款增加 1.729 億美元，該公司記錄了 350 萬美元的信貸損失撥備。相比之下，該公司在 2022 年第一季度和 2022 年第四季度的信貸損失準備金分別為 90 萬美元和 280 萬美元。

The company reported $114 million in total operating expenses in the first quarter of 2023 compared to $99.8 million in total operating expenses prior year's first quarter. The $14.2 million increase in operating expenses was primarily attributable to a $9.8 million increase in salaries and employee benefits and a $4.2 million increase in other expenses.

該公司報告 2023 年第一季度的總運營費用為 1.14 億美元，而去年第一季度的總運營費用為 9980 萬美元。運營費用增加 1,420 萬美元，主要是由於工資和員工福利增加 980 萬美元，以及其他費用增加 420 萬美元。

The increase in salaries and employee benefits expense was driven by increases in merit, severance and incentive-related play wages, including minimum wage-related compression on the lower end of the company's pay scale, acquisition-related and other additions to staffing, higher payroll taxes and higher employee benefit-related expenses.

工資和員工福利支出的增加是由績效工資、遣散費和與激勵相關的工作工資的增加推動的，包括與最低工資相關的公司工資等級低端的壓縮、與收購相關的和其他人員配置的增加、更高的工資稅和更高的員工福利相關費用。

Other expenses were up due to an increase in insurance costs, including larger FDIC insurance expenses, higher professional fees, business development travel and marketing expenses, along with incremental expenses associated with the operating -- with operating an expanded franchise subsequent to the Elmira acquisition in the second quarter of 2022.

其他費用的增加是由於保險成本的增加，包括更大的 FDIC 保險費用、更高的專業費用、業務發展旅行和營銷費用，以及與運營相關的增量費用——在收購 Elmira 後運營擴大的特許經營權。 2022 年第二季度。

In comparison, the company reported $105.9 million of total operating expenses in the fourth quarter of 2022. The $8.2 million or 7.7% increase in total operating expenses between the fourth quarter of '22 and the first quarter of 2023 was largely attributable to a $7.4 million or 11.5% increase in salaries and employee benefits and a $0.7 million or 5% increase in other expenses.

相比之下，該公司報告 2022 年第四季度的總運營費用為 1.059 億美元。2022 年第四季度至 2023 年第一季度總運營費用增加 820 萬美元，即 7.7%，主要歸因於 740 萬美元工資和員工福利增加 11.5%，其他費用增加 70 萬美元，即 5%。

For the remaining 3 quarters of 2023, management anticipates that total operating expenses, excluding any future acquisition activities will remain generally in line with first quarter levels. Said another way, on a full year -- full calendar year-over-year basis, the company anticipates total operating expenses to increase between 5% and 9%. The effective tax rate for the first quarter of 2023 was 16.9%, down from 21.4% in the first quarter of 2022. Excluding the impact tax benefits related to stock-based compensation activity, the effective tax rate was 21.4% in the first quarter of 2023, down from 22.3% in the first quarter of 2022.

在 2023 年剩餘的 3 個季度中，管理層預計，不包括任何未來收購活動的總運營費用將大致與第一季度的水平保持一致。換句話說，在全年——完整日曆年同比的基礎上，該公司預計總運營費用將增加 5% 至 9%。 2023年第一季度的有效稅率為16.9%，低於2022年第一季度的21.4%。剔除與股票薪酬活動相關的影響稅收優惠，2023年第一季度的有效稅率為21.4%。 2023 年，較 2022 年第一季度的 22.3% 有所下降。

The company's total assets were $15.26 billion at March 31, 2023, representing a $369.9 million or 2.4% decrease from 1 year prior and $579.7 million or 3.7% decrease from the end of the fourth quarter of 2022. The book value of average interest-earning assets decreased $662.1 million or 4.5% during the first quarter due primarily to a decrease in the average book value of the investment securities, partially offset by higher average loan balances. At the end of the quarter, the book value of interest-earning assets was $14.03 billion, comprised of $8.98 billion of loans, $5.02 billion investment securities and $28 million of cash equivalents.

截至2023年3月31日，該公司總資產為152.6億美元，較上年同期減少3.699億美元，下降2.4%，較2022年第四季度末減少5.797億美元，下降3.7%。 平均生息賬面價值第一季度資產減少 6.621 億美元，即 4.5%，主要是由於投資證券的平均賬面價值下降，但部分被平均貸款餘額增加所抵消。截至本季度末，生息資產賬面價值為140.3億美元，其中包括89.8億美元貸款、50.2億美元投資證券和2800萬美元現金等價物。

Ending loans increased $1.56 billion or 21% over the prior year and $172.9 million or 2% during the quarter. The increase in ending loans year-over-year was driven by increases in all loan categories due to net organic growth in the Elmira acquisition. The increase in loans outstanding on a linked quarter basis was driven by a $102.3 million or 2.8% increase in business lending and a $70.7 million or 1.4% net increase in the company's consumer loan portfolios.

期末貸款比上年增加 15.6 億美元，即 21%，本季度增加 1.729 億美元，即 2%。期末貸款的同比增長是由於收購 Elmira 後的淨有機增長導致所有貸款類別的增長所致。未償貸款按季度計算的增加是由商業貸款增加 1.023 億美元（即 2.8%）以及公司消費貸款組合淨增加 7,070 萬美元（即 1.4%）推動的。

The company's liquidity position remains strong. The company's funding base is largely comprised of core noninterest-bearing demand deposit accounts and interest-bearing checking, savings and money market deposit accounts with customers that operate, reside or work within our branch footprint. At March 31, 2023, the company's readily available source of liquidity totaled $4.69 billion, including cash and cash equivalent balances, net of float, of $109.7 million, $1.54 billion of funding availability at the Federal Reserve Bank's discount window, $1.84 billion of unused borrowing capacity at the Federal Home Loan Bank of New York and $1.2 billion of unpledged investment securities that could be pledged as collateral for additional borrowing capacity. These sources of immediately available liquidity represent over 200% of the company's uninsured deposits and net of collateralized deposits, which are estimated at $2.3 billion.

該公司的流動性狀況依然強勁。該公司的資金基礎主要由核心無息活期存款賬戶和有息支票、儲蓄和貨幣市場存款賬戶組成，客戶在我們的分行範圍內經營、居住或工作。截至2023年3月31日，該公司隨時可用的流動性來源總計46.9億美元，其中扣除浮動資金的現金和現金等價物餘額為1.097億美元，美聯儲貼現窗口的可用資金為15.4億美元，未使用的借款為18.4億美元紐約聯邦住房貸款銀行的能力以及 12 億美元的未質押投資證券，這些證券可以作為額外借貸能力的抵押品。這些立即可用的流動性來源占公司未保險存款的 200% 以上（扣除抵押存款後，估計為 23 億美元）。

The company's ending total loans were up $98 million from -- excuse me, the company's ending total deposits were up $98 million from the end of the fourth quarter or approximately 1%. Deposit base is well diversified across customer segments, comprised of approximately 63% consumer balances, 25% business balances and 12% municipal balances and broadly dispersed with average consumer deposit account balance of $12,000 in average business deposit relationship of approximately $60,000.

該公司的期末貸款總額比第四季度末增加了 9800 萬美元，對不起，該公司的期末存款總額比第四季度末增加了 9800 萬美元，增幅約為 1%。存款基礎在各個客戶群體中非常多元化，包括約 63% 的消費者余額、25% 的企業餘額和 12% 的市政餘額，並且分佈廣泛，平均消費者存款賬戶餘額為 12,000 美元，平均商業存款關係約為 60,000 美元。

The company's cycle-to-date deposit beta is 5%, reflective of a high proportion of noninterest-bearing deposits, which represent 30% -- over 30% of total deposits and a composition and stability of the customer base while the cycle-to-date total funding beta, 7%. At the end of the quarter, 74% of the company's total deposit balances were in checking and savings accounts, and the weighted average age of the company's nonmaturity deposit accounts is approximately 15 years.

該公司的周期至今存款貝塔值為 5%，反映出無息存款比例較高，佔總存款的 30% 至 30% 以上，以及客戶群的構成和穩定性，而周期末- 迄今為止總資金貝塔值，7%。截至本季度末，公司總存款餘額的74%位於支票和儲蓄賬戶，公司非到期存款賬戶的加權平均年齡約為15年。

The company does not currently have any brokered or wholesale deposits on its balance sheet. The company's loan-to-deposit ratio at the end of the first quarter was 68.5%, providing future opportunity to migrate lower-yielding investment security balances into higher-yielding loans. In addition, during the remaining 3 quarters of 2023, the company anticipates receiving over $600 million of investment security principal cash flows to support its funding needs.

該公司目前的資產負債表上沒有任何經紀或批發存款。該公司一季度末的貸存比為68.5%，為未來將低收益投資擔保餘額遷移到高收益貸款提供了機會。此外，在 2023 年剩餘的 3 個季度中，該公司預計將收到超過 6 億美元的投資安全本金現金流，以支持其融資需求。

At March 31, 2023, all the companies and the bank's regulatory capital ratio significantly exceeded well-capitalized standards. More specifically, the company's Tier 1 leverage ratio was 9.06% at March 31, 2023, which substantially exceeds the regulatory well-capitalized standard of 5%. The company's net tangible equity-to-net tangible assets ratio was 5.41% at March 31, 2023, up 77 basis points from the end of the fourth quarter of 2022.

截至2023年3月31日，所有公司及銀行的監管資本充足率均大幅超過資本充足標準。更具體地說，截至2023年3月31日，該公司的一級槓桿率為9.06%，大幅超過監管資本充足標準5%。截至2023年3月31日，公司有形權益淨值與有形資產淨值比率為5.41%，較2022年四季度末上升77個基點。

During the first quarter, the company repurchased 200,000 shares of its common stock pursuant to its Board-approved 2023 stock repurchase program. At March 31, 2023, the company's allowance for credit losses totaled $63.2 million or 0.70% of total loans outstanding. This compares to $61.1 million or 0.69% of total loans outstanding at the end of the fourth quarter of 2022 and $50.1 million or 0.68% of total loans outstanding at March 31, 2022.

第一季度，該公司根據董事會批准的 2023 年股票回購計劃回購了 200,000 股普通股。截至2023年3月31日，該公司的信貸損失準備金總額為6,320萬美元，佔未償貸款總額的0.70%。相比之下，2022 年第四季度末未償貸款總額為 6110 萬美元，佔未償貸款總額的 0.69%；截至 2022 年 3 月 31 日，未償貸款總額為 5010 萬美元，佔未償貸款總額的 0.68%。

During the first quarter of 2023, the company reported net charge-offs of $1.5 million or 7 basis points of average annual loans annualized. This compares to 3 basis points of annualized net charge-offs in the first quarter of 2022 and 9 basis points in the fourth quarter of 2022. At March 31, 2023, nonperforming loans totaled $33.8 million or 0.38% of total loans outstanding. Loans 30 to 89 days delinquent were 0.35% of total loans outstanding at March 31, 2023, down from 0.51% at the end of the fourth quarter of 2022.

2023 年第一季度，該公司報告淨沖銷額​​為 150 萬美元，相當於年平均貸款的 7 個基點。相比之下，2022 年第一季度的年化淨沖銷為 3 個基點，2022 年第四季度為 9 個基點。截至 2023 年 3 月 31 日，不良貸款總額為 3,380 萬美元，佔未償貸款總額的 0.38%。截至 2023 年 3 月 31 日，拖欠 30 至 89 天的貸款佔未償還貸款總額的 0.35%，低於 2022 年第四季度末的 0.51%。

We believe the company's strong liquidity profile, capital reserves, core deposit base, asset quality and revenue profile provide a solid foundation of future opportunities. Looking forward, we are encouraged by the momentum in our business. The company continued to organically grow its loan portfolios, and asset quality remains strong. The company's granular Main Street-focused deposit base and strong liquidity profile are expected to support future growth in our banking business. In addition, new business opportunities in the financial services businesses remained strong.

我們相信，該公司強勁的流動性狀況、資本儲備、核心存款基礎、資產質量和收入狀況為未來的機會奠定了堅實的基礎。展望未來，我們的業務勢頭令我們深受鼓舞。該公司繼續有機增長其貸款組合，資產質量依然強勁。該公司以主街為中心的精細存款基礎和強勁的流動性狀況預計將支持我們銀行業務的未來增長。此外，金融服務業務的新商機依然強勁。

Thank you. I will now turn it back to Danielle to open the line for questions.

謝謝。現在我將把它轉回丹妮爾以打開提問熱線。

(Operator Instructions) The first question comes from Alex Twerdahl from Piper Sandler.

（操作員說明）第一個問題來自 Piper Sandler 的 Alex Twerdahl。

First off, can you just elaborate a little bit on what you did with the NSF fees this quarter and whether or not that $16.2 million is the right run rate for deposit service fees over the remainder of the year?

首先，您能否詳細說明一下您本季度對 NSF 費用的處理情況，以及 1620 萬美元是否是今年剩餘時間存款服務費的正確運行率？

Yes. So late in the fourth quarter and also, I guess, really kicking in, in the early part of the first quarter, we made some changes, particularly on NSF and unavailable funds fees. Our expectation on a full year basis is that we'll effectively reduce overall deposit service fees by $6 million to $8 million. Also, in the first quarter, Alex, we just have lower occurrences of overdraft (inaudible) and just typically deposit service fees are down a bit in the first quarter as compared to the fourth quarter.

是的。因此，在第四季度末，我想，在第一季度初期，我們確實開始做出一些改變，特別是在 NSF 和不可用基金費用方面。我們預計全年存款服務費用將有效降低 600 萬至 800 萬美元。此外，亞歷克斯，在第一季度，我們的透支發生率較低（聽不清），而且第一季度的存款服務費通常比第四季度略有下降。

So that run rate that we have in the first quarter is potentially just slightly below expectations for the next 3 quarters because typically, the first quarter is a little bit slower in terms of debit interchange and overdraft occurrences. But on an annualized run rate basis, we expect the changes will effectively reduce fees by $6 million to $8 million.

因此，我們第一季度的運行率可能略低於未來三個季度的預期，因為通常情況下，第一季度在藉記交換和透支發生方面會稍慢一些。但按年化運行率計算，我們預計這些變化將有效減少 600 萬至 800 萬美元的費用。

Okay. And then can you give us a little bit -- you said $600 million of cash flows from the securities portfolio over the course of the year. I think Mark mentioned $350 million in May. Can you give us the timing of the remainder of that as well as expectations for deposits? I know municipal deposits tend to come in the first quarter, how much we expect to flow out in the second quarter and whether or not -- what you're kind of seeing underlying there that maybe just to give us a little bit more expectations for overall liquidity management over the next couple of quarters.

好的。然後你能給我們透露一下嗎——你說全年證券投資組合的現金流量為 6 億美元。我想馬克在 5 月份提到了 3.5 億美元。您能否告訴我們剩餘部分的時間安排以及存款預期？我知道市政存款往往會在第一季度流入，我們預計第二季度會流出多少資金，以及您所看到的潛在情況，這可能只是為了給我們更多的期望未來幾個季度的整體流動性管理。

Yes. So the $350 million, as Mark mentioned, matures in the middle of May. So we do expect that that's a treasury security, so it's going to happen. We have another $150 million in mid-August, also treasury security. Those 2 pieces comprise the lion's share of the $600 million, the other, call them cash flows come out -- happen throughout the year, basically mortgage-backed security principal repayments.

是的。因此，正如馬克提到的，這 3.5 億美元將於 5 月中旬到期。所以我們確實預計這是國債，所以它會發生。 8 月中旬我們還有另外 1.5 億美元，也是國庫安全。這兩部分佔 6 億美元的最大份額，另一部分稱為現金流出——全年發生，基本上是抵押貸款支持證券本金的償還。

On a blended basis, those 2 treasury securities are coming off at about a 2.5% yield. So we do expect to be able to redeploy those proceeds to either pay off overnight borrowings should we see some drift down in the deposit base, or potentially, that could be redeployed into loan growth if that opportunity is there. So we do expect some, call it, NII pickup -- net interest income pickup on maturities, Alex.

綜合計算，這兩種國債的收益率約為 2.5%。因此，如果我們看到存款基礎有所下降，我們確實希望能夠重新部署這些收益來償還隔夜借款，或者如果有機會的話，這些收益可能會被重新部署到貸款增長中。因此，我們確實預計會有一些，稱之為 NII 回升——到期時的淨利息收入回升，亞歷克斯。

With respect to deposit flows, we typically do see an increase in municipal flows in the first quarter as we talked about tax collection cycles in New York State, and that typically is a couple of hundred million dollars on a net basis in the quarter, and we do typically see those flow out throughout most of the second quarter. And then we kind of sometimes drift down a bit in the third quarter another $100 million or so, and then tax collection occurs in September again for the New York school districts, and we see kind of a lot of that restore in -- going into the late part of the third quarter and into the fourth quarter.

就存款流量而言，當我們談論紐約州的稅收週期時，我們通常確實會看到第一季度市政流量的增加，該季度的淨額通常為數億美元，並且我們通常會看到這些資金在第二季度的大部分時間裡流出。然後我們有時會在第三季度再減少 1 億美元左右，然後紐約學區在 9 月份再次進行徵稅，我們看到很多恢復 - 進入第三季度末和第四季度。

With respect to IPC deposits, I think we're just sort of seeing the results of kind of the overall M2 supply reflective of the M2 money supply going down. And I think the entire industry is seeing a bit of a flow-out of the deposit balances. And I think that's kind of what we'll probably have across the industry and potentially to us as well.

關於 IPC 存款，我認為我們只是看到總體 M2 供應量的結果反映了 M2 貨幣供應量的下降。我認為整個行業都看到存款餘額有所流出。我認為這可能是我們整個行業所擁有的，也可能是我們自己所擁有的。

The next question comes from Steve Moss of Raymond James.

下一個問題來自雷蒙德·詹姆斯的史蒂夫·莫斯。

Maybe just starting on loan pricing here and loan growth. You had good loan growth in the quarter. Just curious what are the yields you're seeing these days. And let's just start there.

也許只是從貸款定價和貸款增長開始。本季度貸款增長良好。只是好奇你這些天看到的收益率是多少。讓我們從這裡開始吧。

So Steve, it's Dimitar. In the first quarter, we blended to about 6.3% yield on originations. I think if you look at by various buckets, as we sit here today, commercial is kind of in the mid- to high 6s. In the auto business, we're 7% right now. In mortgage, obviously, it depends on what happens with aggregate rates, but that has been kind of in the 6% to 6.5% range. So we have not seen much movement.

史蒂夫，這是迪米塔爾。第一季度，我們將原始收益率混合到約 6.3%。我認為，如果你從不同的角度來看，就像我們今天坐在這裡一樣，商業廣告的排名在中到高 6 之間。在汽車行業，我們現在佔 7%。顯然，在抵押貸款方面，這取決於總利率的變化，但總體利率在 6% 到 6.5% 的範圍內。所以我們沒有看到太多的動靜。

I think in the second quarter so far, with that said, there were a couple of interest rate -- no, one hike in the first quarter that we didn't get the full benefit of because it was at the end of March and potentially another hike next week. So some of the loans that we have tied to Prime should drift up. So -- but kind of that range in the 6s, I think, is a decent proxy for Q2.

我認為到目前為止，在第二季度，有幾次利率——不，第一季度有一次加息，我們沒有充分受益，因為那是在 3 月底，而且有可能下週再次加息。因此，我們與 Prime 掛鉤的一些貸款應該會增加。所以，但我認為 6 秒的範圍是第二季度的一個不錯的代表。

Okay. That's helpful, Dimitar. And then in terms of just the margin, you have a lot of balance sheet movement here during the current quarter and, obviously, upcoming with the treasuries maturing. Just kind of curious, maybe do you have a spot margin at quarter end and kind of how you're thinking about margin trends for the second and third quarters?

好的。這很有幫助，迪米塔爾。然後就利潤率而言，本季度資產負債表發生了很大的變化，顯然，隨著國債到期，資產負債表也將發生變化。只是有點好奇，也許您在季度末有即期利潤，以及您如何考慮第二和第三季度的利潤趨勢？

So we -- actually, Steve, the month of March was our highest net interest income or our existing month on record. So we kind of saw a peak NII at the end of the quarter. So if you think about the catalysts for NII for the balance of 2023, and really, if you look at kind of the second quarter because it's a little bit difficult to make the call relative to the third and fourth quarter because of the potential funding costs. But if you look at the next quarter, we had the securities maturity of $350 million, which -- that's maturing at about [$240 million]. So that's going to be redeployed into either loans or to pay off overnight borrowings.

所以，實際上，史蒂夫，三月份是我們有記錄以來最高的淨利息收入或現有月份。因此，我們在本季度末看到了 NII 的峰值。因此，如果你考慮 2023 年剩餘時間 NII 的催化劑，實際上，如果你看看第二季度，因為由於潛在的融資成本，相對於第三季度和第四季度做出決定有點困難。但如果你看看下個季度，我們的證券到期金額為 3.5 億美元，到期時間約為 [2.4 億美元]。因此，這將被重新部署到貸款或償還隔夜借款。

We have a couple of extra days of interest earning days in Q2, which is helpful as well. We also have, call it, loan replacement, right? So we have about $350 million per quarter. That's maturing. And if that's just replacement, we don't -- simply, we don't grow. We just replace what's coming off. We're picking up about 175 basis points on the replacement yields. So that's a catalyst for NII.

我們在第二季度有幾天額外的生息日，這也很有幫助。我們還有，稱之為貸款替代，對嗎？所以我們每季度大約有 3.5 億美元。這就是成熟。如果這只是替代，那麼我們就不會——簡單地說，我們不會成長。我們只是更換掉下來的東西。我們將替代收益率提高約 175 個基點。所以這是 NII 的催化劑。

As Dimitar mentioned, we also have an increase in Prime that really didn't catch, if you will, in the first quarter, which we'll see this event in the second quarter. In the next 90 days or so, we have about $850 million of loans that are going to reprice. There's another roughly $1 billion beyond that, the balance of the [year]. But the first 90 days, there's about $850 million that's going to reprice. So that's helpful. And then, of course, there's potential for additional loan growth in the quarter.

正如 Dimitar 提到的，我們的 Prime 會員數量也有所增加，如果你願意的話，在第一季度確實沒有出現這種情況，我們將在第二季度看到這一事件。在接下來的 90 天左右的時間裡，我們約有 8.5 億美元的貸款將重新定價。除此之外，還有大約 10 億美元，即[年度]餘額。但前 90 天，大約有 8.5 億美元將重新定價。所以這很有幫助。當然，本季度貸款還有可能進一步增長。

So the catalyst on the interest income side, obviously, the question around cost of funds and cost of deposits remains to be seen. And I would just say that we do have a really strong core deposit franchise. But the rate increases were so rapid in 2022, there's going to be some necessary increases in funding costs in 2023 as we sort of catch up to some of the changes that were made on Prime and Fed funds and the short end of the curve.

因此，利息收入方面的催化劑顯然是圍繞資金成本和存款成本的問題還有待觀察。我只想說，我們確實擁有非常強大的核心存款專營權。但 2022 年的加息速度如此之快，隨著我們趕上 Prime 基金和聯邦基金以及曲線短端的一些變化，2023 年融資成本將會出現一些必要的增長。

So I think there's going to be a little bit of catch-up. In other words, I don't believe that our deposit beta will stay at 5% for the full cycle. It's simply going to accelerate. And I think it has. And I think the whole industry has seen that happen in the last couple of quarters.

所以我認為將會有一些追趕。換句話說，我不相信我們的存款貝塔值會在整個週期內保持在 5%。它只會加速。我認為確實如此。我認為整個行業在過去幾個季度都看到了這種情況的發生。

Right. Okay. That's helpful. And then just on expenses here. Just on the drivers of the increase in compensation expense here. I hear you guys on the full year, relatively stable versus this [bounce]. Maybe just a little bit of color. I'm not sure if I missed it.

正確的。好的。這很有幫助。然後只是這裡的費用。只是這裡補償費用增加的驅動因素。我聽說你們全年相對穩定[反彈]。也許只是一點點顏色。我不確定我是否錯過了。

Yes. So -- and Steve, probably, I could have spoken, I guess, more directly about first quarter results when -- on the last quarter's conference call. But our typical pattern is to see a significant increase in expenses in Q1. And part of that is we provide our merit increases across the board in Q1. Other companies might feather them out throughout the year. We typically do it in the first quarter. Along with that comes higher [flight] expenses. We had some severance expenses in the quarter around salaries. We did have wage pressures, particularly on the lower end, which -- there's a compression component to that, which pushes up the lower end of our pay scale. So some of that effectively is, I'll call it, embedded in the future run rate on salaries, but there's also components that effectively are higher in the first quarter. So our expectation is that all-in on operating expenses that we would expect the next 3 quarters to be line with the first quarter. Most of our increase is absorbed in the first quarter.

是的。因此，史蒂夫，我想，在上個季度的電話會議上，我可能可以更直接地談論第一季度的業績。但我們的典型模式是第一季度的支出大幅增加。其中一部分是我們在第一季度全面提高績效。其他公司可能會全年淘汰它們。我們通常在第一季度進行。隨之而來的是更高的[飛行]費用。本季度我們有一些與工資相關的遣散費。我們確實面臨工資壓力，特別是在低端，這其中有一個壓縮因素，這推高了我們工資水平的低端。因此，其中一些實際上是，我稱之為，嵌入到未來的工資運行率中，但也有一些組件在第一季度實際上更高。因此，我們的預期是，我們預計未來三個季度的運營支出將與第一季度持平。我們的大部分增長都在第一季度被吸收。

We also have some other expenses around just facilities costs, given our climate and like in the first quarter that typically we don't see in the following quarters. So there's a couple of items that contribute to just a higher OpEx line in Q1, but we do expect that basically level off for the balance of the year. If you look at a full year-over-year basis on operating expenses, our expectations are somewhere between, call it, 5% and 9% full year '23 basis versus a full year '22 basis.

考慮到我們的氣候以及第一季度的情況，我們還有一些圍繞設施成本的其他費用，這些費用通常在接下來的幾個季度中不會出現。因此，有幾個項目有助於第一季度更高的運營支出線，但我們確實預計今年剩餘時間基本持平。如果你看一下全年運營費用的同比情況，我們的預期介於 23 年全年 5% 和 9% 與 22 年全年基礎之間。

The next question comes from Manuel Navas of D.A. Davidson.

下一個問題來自 D.A. 的曼努埃爾·納瓦斯 (Manuel Navas)。戴維森。

Filling in for Manuel today. I have a few questions on loan growth outlook and pipeline. So first up, just loan growth outlook of mid-single digit still hold from last quarter, especially after the balance sheet repositioning, has there been a change of mindset? Just want some color on that, please.

今天代替曼紐爾。我對貸款增長前景和渠道有幾個問題。首先，與上季度相比，貸款增長前景仍然保持在中個位數，特別是在資產負債表重新定位之後，心態是否發生了變化？只是想要一些顏色，拜託。

Yes. I believe that our expectations are the same, which is mid-single digits for loan growth. What I think is a favorable change for us is just the competitive dynamic, which driven by the environment. A number of our peers are in a tougher spot, strong balance sheet perspective and their ability to service customers.

是的。我相信我們的預期是相同的，即貸款增長處於中個位數。我認為對我們有利的變化就是環境驅動的競爭動力。我們的許多同行處境更為艱難，但他們的資產負債表視角和服務客戶的能力都很強。

So we're seeing higher-quality opportunities at substantially better rates than maybe what we expected at the beginning of the year. So I don't think that we expect to do a lot more than what we communicated before, but I think better quality at better rates is what we're striving for right now. So that guidance is still intact.

因此，我們看到了更高質量的機會，而且價格比我們年初的預期要高得多。因此，我認為我們不會期望做比之前溝通的更多的事情，但我認為以更好的價格提供更好的質量是我們現在正在努力的目標。因此該指導仍然完好無損。

Great. Could you also talk about your pipeline and also some color on your auto portfolio, any credit issues or anything like that, that we need to be aware of?

偉大的。您能否也談談您的管道以及您的汽車投資組合的一些特點，任何信用問題或類似的問題，我們需要注意？

Sure. So on the pipeline, if you look at our commercial pipeline, still very strong, a little bit lower than they were kind of at the end of the fourth quarter, as we would expect, given the market environment but still very strong compared to our historicals. And again, that is a reflection on competitive dynamics and our retooling of the company over the past 18 months in terms of capabilities and people. On the mortgage side, similarly, I think we've communicated that we spent a lot of time, efforts and money in retooling our go-to-market strategy. That's paying off dividends.

當然。因此，在管道方面，如果你看看我們的商業管道，仍然非常強勁，比第四季度末的水平略低一些，正如我們所預期的那樣，考慮到市場環境，但與我們的相比仍然非常強勁歷史。這再次反映了競爭動態以及我們過去 18 個月在能力和人員方面對公司進行的重組。同樣，在抵押貸款方面，我認為我們已經表示，我們花費了大量時間、精力和金錢來重新調整我們的市場戰略。這就是支付股息。

In fact, last week's mortgage applications were higher than a year ago's week, which is a nice change in trend, given everything that's happening in the mortgage market. So our kind of efforts there are paying off that we expected that portfolio will grow as well. Auto is a little bit more of a wildcard from quarter-to-quarter. We probably didn't expect the stronger growth in the first quarter as we got in that portfolio. But again, writing the same type of credit, 750 average FICO, very appealing loan-to-values and better rates virtually every month. So like I said, we're roughly at 7%. So that risk reward and that paper right now is pretty good.

事實上，上週的抵押貸款申請量高於一年前的一周，考慮到抵押貸款市場發生的一切，這是一個很好的趨勢變化。因此，我們的努力正在取得回報，我們預計投資組合也會增長。從季度到季度，汽車更像是一個通配符。當我們進入該投資組合時，我們可能沒有預料到第一季度會有更強勁的增長。但同樣，寫同樣類型的信用證，平均 FICO 為 750，貸款價值比非常有吸引力，而且幾乎每個月都有更好的利率。正如我所說，我們的比例大約為 7%。所以現在的風險回報和那篇論文相當不錯。

As it relates to asset quality, maybe kind of starting backwards from auto, our charge-offs this quarter were about 30 basis points, which is right in the historical range of our loss experience in auto. Again, this is 750 FICO, super-prime paper basically. We expect that it's going to be somewhere in that range for the rest of the year.

由於與資產質量相關，也許從汽車行業開始倒退，本季度我們的沖銷約為 30 個基點，這正好在我們汽車行業損失經歷的歷史範圍內。再說一次，這是 750 FICO，基本上是超級優質紙張。我們預計今年剩餘時間它將處於該範圍內。

Mortgage, virtually no charge-offs, very little, below historical averages. We expect that to maybe normalize. Again, we've been talking about normalization for a while. We're planning for that. You're seeing us provision a little bit more ahead of that. But so far, no stresses on the consumer side.

抵押貸款幾乎沒有沖銷，很少，低於歷史平均水平。我們預計這種情況可能會正常化。同樣，我們已經討論正常化有一段時間了。我們正在為此做計劃。您會看到我們在此之前提供了更多的供應。但到目前為止，消費者方面還沒有感受到壓力。

And commercial, I mean, we're basically at 0 in terms of losses right now. We had a recovery in the prior quarter, I believe, so the going is pretty good. We're very vigilant around it. We ask ourselves multiple times a week what's happening with credit. We're proactively staying in front of our borrowers. But right now, credit quality is as good as we would want it to be.

我的意思是，就商業而言，我們目前的損失基本上為 0。我相信，我們在上一季度有所復甦，所以進展非常好。我們對此非常警惕。我們每週都會多次問自己信用狀況如何。我們積極主動地站在藉款人面前。但目前，信貸質量正如我們所希望的那樣好。

The next question comes from Matthew Breese of Stephens Inc.

下一個問題來自 Stephens Inc. 的 Matthew Breese。

I was hoping to start on deposit costs, get a sense for where we exited the quarter in terms of overall deposit costs. And Joe, I know you'd mentioned that expectations are not for a full cycle, 5% deposit beta, but would love some thoughts or color around where you think you might end up.

我希望從存款成本開始，了解本季度整體存款成本的情況。喬，我知道你提到過，期望不是一個完整的周期，5% 的存款測試版，但希望對你認為你可能最終的結果有一些想法或色彩。

Sure, Matt. So we did exit the quarter with deposit funding costs of about 38 basis points. So we have seen some acceleration in terms of deposit costs increasing. With respect to margin in NII, I think expectation is that we'll see -- we have a couple tailwinds for Q2. So I would expect that we're going to see a better outcome in Q2, albeit maybe a marginally better outcome [in Q3, in Q4]. We'll see.

當然，馬特。因此，我們確實以約 38 個基點的存款融資成本結束了本季度。因此，我們看到存款成本有所加速增長。關於國家信息基礎設施的利潤率，我認為我們會看到第二季度有一些有利因素。因此，我預計我們將在第二季度看到更好的結果，儘管[第三季度、第四季度]可能會稍微好一些。我們拭目以待。

But in terms of a full-cycle beta, it's not unreasonable to expect that if we have a 500-basis-point increase on the short end of the curve, then ultimately, our deposit beta is [20%] of that or more when we're through the full-cycle beta, which, I think, would significantly outperform the industry. But I think those expectations are not unreasonable.

但就全週期貝塔值而言，如果我們在曲線的短端增加 500 個基點，那麼最終我們的存款貝塔值將達到 [20%] 或更多，這並非不合理。我們已經完成了全週期測試，我認為這將顯著優於行業。但我認為這些期望並非沒有道理。

To add to that, if you look at -- I mean we look at all of our peers reporting and kind of across the country. I think if you had a list of betas and deposit costs right now, we would back up on a very short list. So we expect that we'll continue to be on that short list going forward. If you look at the underlying dynamics, the -- a lot of the personnel deposits are basically remixing into cities. They're not necessarily leaving the bank. They're just remixing into cities. The commercial deposits, you've seen some drawdowns there for people using cash for projects, paying taxes, which happens kind of in the first part of the year. So that's been a little bit more of the negative drawdown that doesn't stay with us. But as businesses make money over the year, hopefully, those balances are going to grow. And then on the public side, we've talked about the seasonality.

除此之外，如果你看一下——我的意思是，我們會看全國范圍內所有同行的報告。我認為，如果您現在有一份測試版和存款成本清單，我們會支持一個非常簡短的清單。因此，我們預計未來我們將繼續出現在這個候選名單上。如果你看看潛在的動態，就會發現——大量的人員儲備基本上正在重新融入城市。他們不一定會離開銀行。他們只是重新混入城市。在商業存款方面，您已經看到人們使用現金進行項目、納稅的人出現了一些提款，這在今年上半年就發生了。因此，更多的負面回撤併沒有留在我們身邊。但隨著企業逐年賺錢，這些餘額有望增加。然後在公共方面，我們討論了季節性。

So it's a little bit hard to figure out what the ultimate through-the-cycle cost is, but there's a lot of moving pieces to it. And as Joe said, it's not going to be 5%. We hope it's less than 20%. But we're trying to be as proactive as we can and continue to be on the very short list of banks with extraordinary deposit bases in the United States.

因此，弄清楚最終的整個週期成本是多少有點困難，但其中有很多變化因素。正如 Joe 所說，不會是 5%。我們希望這個比例低於 20%。但我們正在努力盡可能積極主動，並繼續躋身於美國擁有非凡存款基礎的銀行名單之列。

Understood. There's 200,000 shares repurchased for the quarter. Obviously, like so many other banks in the industry, the stock is down a bit, but your capital levels are improving, and it seems like, fingers crossed, with the repositioning some of the worst of the AOCI stuff is behind us. Share repurchases on the radar in a more aggressive fashion than we've seen you do historically.

明白了。本季度回購了 200,000 股股票。顯然，像業內許多其他銀行一樣，該股的股價有所下跌，但您的資本水平正在改善，而且似乎，祈禱吧，隨著 AOCI 一些最糟糕的東西的重新定位，我們已經過去了。以比我們歷史上見過的更積極的方式在雷達上分享回購。

Yes, Matt, I wouldn't say terribly more aggressive than we've done historically. We typically try to at least repurchase the shares that are issued in our equity plans. So I would -- for the balance of the year, maybe $0.5 million or less in terms of total shares, that would be repurchased. So we're at 200,000 now, so potentially another 300,000 throughout the year. I mean that could change later in the year, but right now, that's -- I think would be on the high end of our expectations.

是的，馬特，我不會說比我們歷史上所做的更加激進。我們通常會嘗試至少回購我們股權計劃中發行的股票。因此，在今年餘下的時間裡，我會回購 50 萬美元或更少的股份。目前我們的人數為 200,000，全年可能還會增加 300,000。我的意思是，這種情況可能會在今年晚些時候發生變化，但現在，我認為這將達到我們期望的上限。

Okay. Maybe just turning to M&A. Obviously, it feels like the banking industry is -- everybody is a bit inward focused right now. But do you have expectations that M&A picks up in the back half of the year on the back of all this? And how do you feel about your ability to participate in that? And would you?

好的。也許只是轉向併購。顯然，銀行業現在每個人都有點內向。但您是否預計在這一切的推動下，併購活動將在今年下半年回升？您對自己參與其中的能力有何看法？你會嗎？

Yes, I think it's hard to handicap right now what the remainder of the year brings just given the current uncertainty in the environment, not just industry uncertainty but macro uncertainty as well as it relates to just overall interest rates and GDP and inflation, all those kinds of things that can just affect how people think about M&A. So I think it's relatively quiet right now.

是的，我認為，考慮到當前環境的不確定性，現在很難限制今年剩餘時間會帶來什麼，不僅是行業不確定性，還有宏觀不確定性，以及與總體利率、GDP 和通貨膨脹有關的所有這些不確定性。各種各樣的事情都會影響人們對併購的看法。所以我認為現在相對安靜。

For the most part, we're certainly always interested in partnering with other organizations that have high-value assets to us. I think that the recent events in the industry would suggest that there's going to be a separation between companies with good balance sheets and more challenging balance sheets. We certainly wouldn't be motivated to partner with someone that would dilute the quality of our balance sheet, but also, our strategy hasn't changed at all in terms of high-value M&A opportunities.

在大多數情況下，我們當然總是有興趣與其他擁有高價值資產的組織合作。我認為，該行業最近發生的事件表明，資產負債表良好的公司和資產負債表更具挑戰性的公司之間將會出現分離。我們當然不會主動與會削弱我們資產負債表質量的人合作，而且，在高價值併購機會方面，我們的戰略根本沒有改變。

I will say that we're focusing a fair bit on the nonbanking businesses. We think there's -- continues to be really good opportunity there. It's a significant part of the strength of our company and our future in terms of strategic capital allocation. So we're pretty active on the nonbank space. But again, on the bank side, it's been relatively subdued. We continue to have conversations with other banks that we have potential interest in. But I think the environmental uncertainty makes it very difficult right now. I mean you start with valuations are down across the industry, including us. And it just makes, I think, putting a deal together that much more difficult, principally from the seller's perspective in terms of expectations around valuation.

我想說的是，我們相當關注非銀行業務。我們認為那裡仍然存在非常好的機會。就戰略資本配置而言，這是我們公司實力和未來的重要組成部分。因此，我們在非銀行領域非常活躍。但在銀行方面，情況又相對疲軟。我們繼續與我們有潛在興趣的其他銀行進行對話。但我認為環境的不確定性使得現在變得非常困難。我的意思是，整個行業的估值都在下降，包括我們。我認為，這只會讓達成交易變得更加困難，主要是從賣方對估值預期的角度來看。

So we continue to be interested. Strategy hasn't changed. We're really trying to focus heavily on the nonbank side of the businesses where we have critical mass in wealth, we have critical mass in benefits, we have critical mass in insurance. We'll continue to invest in those businesses potentially at even a faster pace in terms of capital allocation than the banking segment.

所以我們繼續感興趣。策略沒有改變。我們確實在努力重點關注業務的非銀行方面，我們在財富方面擁有臨界規模，在福利方面擁有臨界規模，在保險方面擁有臨界規模。我們將繼續投資這些業務，在資本配置方面可能會比銀行部門更快。

(Operator Instructions) The next question comes from Eric Zwick of Hovde Group.

（操作員說明）下一個問題來自 Hovde Group 的 Eric Zwick。

Justin Marca on for Eric today. I think most of my questions have already been answered, but just a quick one, and apologies if I already missed it. But did you have an average price per share on the buyback this quarter?

賈斯汀·馬卡今天替補埃里克。我想我的大部分問題已經得到解答，但只是一個簡短的問題，如果我已經錯過了，我深表歉意。但是您有本季度回購的每股平均價格嗎？

Yes, it was just about $54.

是的，大約只有 54 美元。

The next question comes from Chris O'Connell of KBW.

下一個問題來自 KBW 的 Chris O'Connell。

I appreciate all the color you guys have given around kind of NII and the impacts from securities maturing over the next couple of quarters here. Given you guys have a good amount of ammo to kind of defend the margin into 2Q and 3Q, and how are you guys thinking about where the eventual margin begin to settle out as we get toward 4Q or year-end, post some of those kind of balance sheet opportunities?

我很欣賞你們對 NII 類型以及未來幾個季度到期的證券的影響所做的所有闡述。鑑於你們有足夠的彈藥來捍衛第二季度和第三季度的利潤，並且你們如何考慮當我們進入第四季度或年底時最終的利潤開始穩定在哪裡，發布一些這樣的內容資產負債表機會？

Yes, Chris, that's -- I mean it's a difficult question to answer because it really comes down to the funding beta. I think we have a pretty good line of sight on sort of what happens on the asset side for the most part. Given our loan growth and, call it, the replacement rate of maturing loans, the funding side is always a bit of the wildcard. I mean right now, we've had about $13.5 billion in funding between deposits and borrowings.

是的，克里斯，我的意思是這是一個很難回答的問題，因為這實際上取決於資金測試。我認為我們對資產方面發生的大部分事情都有很好的了解。考慮到我們的貸款增長，以及到期貸款的替代率，資金方面總是有點不確定。我的意思是，目前我們的存款和借款資金總額約為 135 億美元。

And the question is, does that go up 10, 20 or 30 basis points throughout the year? And I think that's -- as we get deeper into Q2 and into Q3, we'll kind of see where the market settles out. But that's a pretty tough call for Q4. I would not expect that the industry will see, I'll call it, significant margin expansion by Q4. In fact, I probably would think the industry might actually drift down in terms of margin by Q4. But I think we might do a little bit better than the industry given our deposit base. So I'm not sure we can make a call on Q4 at this point.

問題是，全年會上漲 10、20 還是 30 個基點？我認為，隨著我們深入進入第二季度和第三季度，我們將看到市場的穩定情況。但這對於第四季度來說是一個相當艱難的決定。我預計該行業不會在第四季度看到（我稱之為）利潤率大幅擴張。事實上，我可能認為到第四季度該行業的利潤率實際上可能會下降。但我認為，考慮到我們的存款基礎，我們可能會比行業做得更好一些。所以我不確定我們現在是否可以就第四季度進行通話。

Got it. And for the borrowings you guys have kind of on balance sheet right now, is that mostly overnight? If not, what is the duration of those? And just noticed maybe due to timing or whatever, but the yield is fairly low on those, or the cost is pretty low on those borrowings for the quarter. Or was that just kind of a timing issue?

知道了。對於你們現在資產負債表上的借款，大部分都是隔夜的嗎？如果不是，這些持續時間是多長？只是注意到可能是由於時機或其他原因，但這些收益率相當低，或者本季度這些借款的成本相當低。或者這只是一個時間問題？

Yes. We have -- at the end of the quarter, we had about 50 -- I think it was $58 million in overnight borrowings. Well, Chris, we also carry typically over $300 million in customer repurchase agreements. They're classified as borrowings. They're more akin, quite frankly, to deposits. And most of that's in our Vermont -- in our New England footprint a [lot of] fair number of municipal customers, some commercial customers. But for the most part, we kind of look at that portfolio as something more akin to deposits.

是的。截至本季度末，我們有大約 50 個隔夜借款，我認為是 5800 萬美元。克里斯，我們通常還持有超過 3 億美元的客戶回購協議。它們被歸類為藉款。坦率地說，它們更類似於存款。其中大部分是在我們的佛蒙特州 - 在我們的新英格蘭足跡中，有相當數量的市政客戶，還有一些商業客戶。但在大多數情況下，我們將該投資組合視為更類似於存款的東西。

So it's a bit more rate-sensitive than demand deposits but also wouldn't match necessarily overnight borrowing costs. So a fair amount of our borrowings are tied up in customer repurchase agreements.

因此，它比活期存款對利率更敏感，但也不一定與隔夜借款成本相匹配。因此，我們的相當一部分借款與客戶回購協議有關。

All right. That makes sense. And for the CDs that you guys are putting on, what are the rates that those aren't coming out?

好的。這就說得通了。對於你們正在發行的 CD，那些未發行的 CD 的價格是多少？

So Chris, on the CD side, I think we're right around 4% right now on kind of probably published in blended rates; in some markets, a little bit lower; in some markets, a little bit higher.

克里斯，在 CD 方面，我認為我們現在的利率大約是 4% 左右，可能會以混合利率的形式公佈；在某些市場，稍微低一些；在某些市場，略高一些。

Okay. And then just -- I know you guys touched on it earlier, but I mean is there any areas that you guys are starting to see any types of credit stress or that you guys are kind of pulling back on that growth or that is starting to concern you within your overall markets? Or is the outlook kind of still cautiously optimistic here for the near-term future?

好的。然後--我知道你們早些時候談到過這個問題，但我的意思是，你們是否開始在某些領域看到任何類型的信貸壓力，或者你們正在某種程度地抑制這種增長，或者開始出現這種增長。您對整個市場感興趣嗎？或者短期內的前景仍然謹慎樂觀？

Chris, I wouldn't say any sort of stress. I would say we're just being a little bit more vigilant around the sectors you would typically think about, like commercial real estate resets and ability to stress test for rates. With that said, the new paper that's coming in, you could argue if you've got 1.3, 1.4 coverage on rates in the [7s], that's pretty good stress test on day 1 for those customers.

克里斯，我不會說有任何壓力。我想說，我們只是對您通常會想到的領域更加警惕，例如商業房地產重置和利率壓力測試的能力。話雖如此，在即將發布的新論文中，您可能會說，如果您在 [7s] 中的利率覆蓋率為 1.3、1.4，那麼對於這些客戶來說，這在第一天是非常好的壓力測試。

But we're looking at those that are resetting a little bit tighter, paying a little bit closer attention to the indirect paper as well. Again, right in the middle of historical ranges, we don't necessarily expect that to change much, but we're just being a little bit more vigilant around trends and making sure that we're not seeing anything worse, which we're not right now.

但我們正在關注那些重新調整得更緊的人，也更加關注間接文件。同樣，在歷史範圍的中間，我們不一定期望這種情況會發生太大變化，但我們只是對趨勢更加警惕，並確保我們不會看到更糟糕的情況，我們正在這樣做不是現在。

Great. And last one for me. Just what's a good go-forward tax rate?

偉大的。最後一張給我。到底什麼是好的遠期稅率？

Somewhere, Chris, between 21.5% and, call it, low 22s, so 22.5%. 21.5%, 22.5% is probably a fair range to expect, I think, on a go-forward basis.

克里斯，在某個地方，介於 21.5% 和低 22 之間，所以是 22.5%。我認為，從長遠來看，21.5%、22.5% 可能是一個合理的預期範圍。

This concludes the question-and-answer session. I would like to turn the conference back over to Mr. Tryniski for closing remarks.

問答環節到此結束。我想將會議轉回由特尼斯基先生致閉幕詞。

Thank you. Nothing more from our end. Thank you all for joining us, and we'll talk again after the end of Q2. Thank you.

謝謝。我們的結局僅此而已。感謝大家加入我們，我們將在第二季度結束後再次討論。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。