Cullen/Frost Bankers Inc (CFR) 2023 Q2 法說會逐字稿

Greetings, and welcome to today's Cullen/Frost Bankers Inc. Second Quarter Earnings Conference Call. (Operator Instructions). As a reminder, this conference is being recorded.

大家好，歡迎參加今天的 Cullen/Frost Bankers Inc. 第二季財報電話會議。 （操作員說明）。提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce your host, A.B. Mendez, Senior Vice President and Director of Investor Relations. Thank you. Please go ahead.

現在我很高興向大家介紹你們的主持人 A.B.門德斯，資深副總裁兼投資者關係總監。謝謝。請繼續。

Thanks, Donna. This afternoon's conference call will be led by Phil Green, Chairman and CEO; and Jerry Salinas, Group Executive Vice President and CFO.

謝謝，唐娜。今天下午的電話會議將由董事長兼執行長 Phil Green 主持；以及集團執行副總裁兼財務長 Jerry Salinas。

Before I turn the call over to Phil and Jerry, I need to take a moment to address the safe harbor provisions. Some of the remarks made today will constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. We intend such statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.

在我把電話轉給菲爾和傑瑞之前，我需要花點時間討論安全港條款。今天發表的一些言論將構成經修訂的 1995 年《私人證券訴訟改革法案》中定義的前瞻性聲明。我們希望此類陳述受到 1995 年《私人證券訴訟改革法案》（經修訂）中包含的前瞻性陳述安全港條款的保護。

Please see the last page of this morning's earnings press release for additional information about the risk factors associated with these forward-looking statements. If needed, a copy of the release is available on our website or by calling the Investor Relations department at (210) 220-5234.

請參閱今天早上收益新聞稿的最後一頁，以了解與這些前瞻性陳述相關的風險因素的更多資​​訊。如有需要，可在我們的網站上或致電投資者關係部門 (210) 220-5234 取得該新聞稿的副本。

At this time, I'll turn the call over to Phil.

這時候，我會把電話轉給菲爾。

Thanks, A.B. Good afternoon, everyone, and thanks for joining us. We are here to review the second quarter results and our Chief Financial Officer, Jerry Salinas, is going to provide some additional comments before we open it up to your questions.

謝謝，A.B.大家下午好，感謝您加入我們。我們在此回顧第二季度的業績，我們的財務長 Jerry Salinas（Jerry Salinas）將在我們回答您的問題之前提供一些額外的評論。

And in the second quarter, Cullen/Frost earned $160.4 million or $2.47 per share compared with earnings of $117.4 million or $1.81 a share reported in the same quarter last year. That represents a 36.6% increase over last year's level.

第二季度，Cullen/Frost 獲利 1.604 億美元，即每股 2.47 美元，而去年同期的獲利為 1.174 億美元，即每股 1.81 美元。這比去年的水平增長了 36.6%。

Our return on average assets and average common equity in the second quarter were 1.30% and 19.36% respectively, and that compares with a 0.92% and 13.88% for the same period last year.

第二季我們的平均資產報酬率和平均普通股報酬率分別為1.30%和19.36%，去年同期分別為0.92%和13.88%。

Once again, I'm proud of the solid performance turned in by our outstanding staff in this unusual economic environment. The continued rate increases by the Federal Reserve and their fight against inflation have had their intended effect by slowing some segments of the market.

我再次為我們優秀員工在這個不尋常的經濟環境中所取得的穩健表現感到自豪。聯準會的持續升息和對抗通膨的舉措已經達到了預期的效果，減緩了部分市場的發展。

In addition, increasing rates continue to raise the opportunity cost for businesses holding cash and liquid deposits. These impacts are to be expected through the rate cycle and we'll continue to play themselves out during this period, and Jerry will provide some great insight into their near-term effects.

此外，利率上升繼續提高持有現金和流動存款的企業的機會成本。這些影響在利率週期中是可以預期的，我們將在此期間繼續發揮作用，傑瑞將提供一些關於其近期影響的深刻見解。

As we said last time, during the second quarter, Cullen/Frost did not take on any Federal Home Loan Bank advances, participate in any special liquidity facility or government borrowing, access any brokered deposits or utilize any reciprocal insurance arrangements to build insured deposit percentages. But notwithstanding all that, we believe the most important thing for us to focus on at this time is that we are successfully executing our mission to grow and prosper building long-term relationships based on top-quality service, high ethical standards and safe sound assets. And I believe the results for this quarter show we are doing just that, and I am excited about our prospects.

正如我們上次所說，在第二季度，卡倫/弗羅斯特沒有接受任何联邦住房貸款銀行預付款，沒有參與任何特殊流動性便利或政府借款，沒有獲得任何經紀存款或利用任何互惠保險安排來建立保險存款百分比。但儘管如此，我們相信目前最重要的事情是我們正在成功履行我們的使命，即在優質服務、高道德標準和安全可靠的資產的基礎上建立長期合作關係，實現發展和繁榮。我相信本季的結果表明我們正在這樣做，我對我們的前景感到興奮。

And let me give you a few examples. Looking at our commercial and private banking business, we had the best quarter ever for new customer relationships which were up 33% from last year and were up 53% from the previous quarter. That was 1,145 new relationships. I think it's also significant that almost half of those new relationships, 45%, came from the largest banks we affectionately know as "too big to fail".

讓我舉幾個例子。看看我們的商業和私人銀行業務，我們的新客戶關係是有史以來最好的季度，比去年增長了 33%，比上一季增長了 53%。那是 1,145 個新關係。我認為同樣重要的是，這些新關係中近一半（45%）來自我們親切地稱為「太大而不能倒」的最大銀行。

Now I normally wouldn't go into this level of detail, but I'm going to read to you the unannualized linked quarter growth rates in new relationships by region because I think it's fascinating and tells me that it's not an isolated occurrence in one specific market.

現在，我通常不會詳細討論這一級別的細節，但我將向您宣讀按地區劃分的新關係中的非年化關聯季度增長率，因為我認為這很有趣，並告訴我這不是某個特定領域的孤立事件。市場。

Houston led all regions with 333 new -- net new relationships, which was up 63% from the previous quarter. Dallas produced 262 net new relationships, which was up 32%. San Antonio produced 172 net new relationships, which was up 107%. Fort Worth produced 156 net new relationships, which was up 20%. Austin produced 117 net new relationships, which was up 102%. The Gulf Coast and Victoria regions produced 68 net new relationships, which was up by 48% and the Permian Basin produced 37 net new relationship, which was up by 28%. Remember, these numbers are not annualized. To me, this says that we are winning competitively.

休士頓以 333 個新關係領先所有地區，比上一季成長 63%。達拉斯淨新增 262 個關係，成長 32%。聖安東尼奧產生了 172 個淨新關係，成長了 107%。沃斯堡淨新增關係 156 個，成長 20%。奧斯汀淨建立了 117 個新關係，成長了 102%。墨西哥灣沿岸及維多利亞地區淨新增關係 68 個，成長 48%，二疊紀盆地淨新增關係 37 個，成長 28%。請記住，這些數字不是按年計算的。對我來說，這表明我們正在競爭中獲勝。

Looking at our commercial lending business, we saw an increase in activity related to new opportunities, up 19% and an increase in our probability-weighted pipeline by 27% from the first quarter. So we're seeing deal flow. In fact, we looked at 20% more deals than the first quarter. But that said, book deals were down 8% because we declined more and more deals were withdrawn by the customer.

看看我們的商業貸款業務，與第一季相比，與新機會相關的活動增加了 19%，機率加權管道增加了 27%。所以我們看到了交易流。事實上，我們看到的交易比第一季多了 20%。但話雖如此，圖書交易下降了 8%，因為我們拒絕了越來越多的交易並被客戶撤回。

We're obviously being more careful in this environment, but I think the increases in opportunities is notable. I'll also say that unlike the previous quarter, we saw more opportunities from our customers than prospect. Prospect opportunities were up 7% for the first quarter -- from the first quarter, but customers were up 34%.

在這種環境下，我們顯然更加小心，但我認為機會的增加是顯著的。我還要說，與上一季不同的是，我們從客戶那裡看到的機會比潛在客戶多。第一季的潛在客戶機會比第一季增加了 7%，但客戶數量增加了 34%。

Looking at our consumer business, in the second quarter, we set an all-time high for net new relationships at 8,529. This beat our previous all-time high, which was achieved in the first quarter by an unannualized 6%. Our Houston market, where we have the most mature expansion effort, leads the way here with 2,600 net new relationships while Dallas and San Antonio produced about 1,500 each.

看看我們的消費者業務，第二季我們的淨新關係數創下歷史新高，達到 8,529 個。這打破了我們先前在第一季創下的歷史新高，非年化成長率為 6%。我們的休士頓市場是我們擴張最成熟的市場，以 2,600 個淨新關係名列前茅，而達拉斯和聖安東尼奧各產生了約 1,500 個新關係。

Consumer loans ended the quarter at $2.6 billion, a 27% increase from the second quarter of last year and continues to be driven by consumer real estate as our home improvement and home equity products continue to provide the right product at the right time for customers with low rate mortgages and great credit scores. Included in those numbers were over $12 million in mortgage loans as a part of our measured rollout of this product beginning in the Dallas market.

消費貸款本季末達到 26 億美元，較去年第二季度增長 27%，並繼續受到消費者房地產的推動，因為我們的家居裝修和房屋淨值產品繼續在正確的時間為客戶提供正確的產品低利率抵押貸款和良好的信用評分。這些數字中包括超過 1200 萬美元的抵押貸款，這是我們在達拉斯市場開始有計劃地推出該產品的一部分。

Toward the end of the second quarter, we announced our upcoming expansion into the Austin region, which will build upon the momentum from our Houston and Dallas expansions. We plan to double the number of locations we have in the Austin area from 17 to 34. Austin is Texas' third largest deposit market and we already ranked fourth in deposit share.

在第二季末，我們宣布即將向奧斯汀地區擴張，這將建立在休士頓和達拉斯擴張的勢頭之上。我們計劃將奧斯汀地區的網點數量增加一倍，從 17 個增加到 34 個。奧斯汀是德州第三大存款市場，我們的存款份額已經排名第四。

These locations will have a strong legacy to build on. Our Houston expansion, including the 25 original locations plus the additional ones, which we call Houston 2.0, the most recent of which just opened in Friendswood last week. Our expansion branches there are at 121% of household goal, 164% of our loan goal and 108% of our deposit goal. Expansion in Houston now represents $1.27 billion in deposits and about $850 million in loans.

這些地點將擁有強大的遺產可供發展。我們在休士頓的擴張，包括 25 個原來的地點和額外的地點，我們稱之為休士頓 2.0，其中最近的一個上週剛在 Friendswood 開業。我們在那裡的擴張分行達到了家庭目標的 121%、貸款目標的 164% 和存款目標的 108%。休士頓的擴張目前代表著 12.7 億美元的存款和約 8.5 億美元的貸款。

For our Dallas expansion, although it's early, we stand at 226% of new household goal, 315% of our loan goal and 377% of our deposit goal. Expansion in Dallas currently represents $261 million in deposits and $217 million in loans.

對於我們在達拉斯的擴張，雖然還為時過早，但我們已完成新家庭目標的 226%、貸款目標的 315% 和存款目標的 377%。達拉斯的擴張目前包括 2.61 億美元的存款和 2.17 億美元的貸款。

So all told, we have about $1.5 billion in deposits from the expansion and about $1 billion -- a little over $1 billion of loans. Credit quality continues to be good by historical standards. Problem loans, which we define as risk grade 10 or higher, totaled $441 million at the end of the second quarter, and that's up from $348 million at the end of the first quarter and $429 million from this time last year.

總而言之，我們透過擴張獲得了大約 15 億美元的存款和大約 10 億美元——略高於 10 億美元的貸款。按照歷史標準衡量，信用品質仍然良好。問題貸款（我們將風險等級定義為 10 級或更高）在第二季末總計 4.41 億美元，高於第一季末的 3.48 億美元和去年同期的 4.29 億美元。

Nonperforming loans totaled $68.5 million at the end of the second quarter compared with $39.1 million at the end of the first quarter, the result of 2 credits. The second quarter figure represents just 39 basis points of total loans and 14 basis points of total assets.

第二季末不良貸款總額為 6,850 萬美元，而第一季末不良貸款總額為 3,910 萬美元，這是 2 個貸項的結果。第二季的數字僅代表總貸款 39 個基點和總資產 14 個基點。

Net charge-offs for the second quarter were $9.8 million, up from $8.8 million at the end of the first quarter and annualized net charge-offs for the second quarter represented 22 basis points of average loans and year-to-date charge-offs are 21 basis points of loans, which is below our historic average.

第二季的淨沖銷額為 980 萬美元，高於第一季末的 880 萬美元，第二季的年化淨沖銷額相當於平均貸款的 22 個基點，而年初至今的沖銷額為貸款利率上升21 個基點，低於我們的歷史平均。

Regarding commercial real estate, our overall portfolio remains stable with steady operating performance across asset types and acceptable debt service coverage ratios and loan to values. Within this portfolio, what we'd consider to be the major categories of investor CRE, they're comprised, for example, of office, multifamily, retail and industrial and -- as examples. We totaled $3.5 billion of outstandings or about 40% of commercial real estate loans outstanding in total.

在商業不動產方面，我們的整體投資組合維持穩定，各資產類型的經營績效穩定，償債覆蓋率和貸款價值可接受。在這個投資組合中，我們認為投資者 CRE 的主要類別包括辦公大樓、多戶住宅、零售和工業等。我們的未償還貸款總額為 35 億美元，約佔未償還商業房地產貸款總額的 40%。

Our investor commercial real estate portfolio has held up well, exhibiting an overall average loan-to-value of about 54% and loan-to-cost of about 60% and acceptable reported debt service coverage ratios.

我們的投資者商業房地產投資組合表現良好，整體平均貸款價值比約為 54%，貸款成本比約為 60%，報告的償債覆蓋率也可接受。

Higher interest rates have certainly led to some decline in coverage ratios compared to original underwriting pro formas. We've actually seen some improvement in coverage ratios quarter-over-quarter for the already stabilized properties in our portfolio. For example, 85% of our investor office portfolio is stabilized and average debt service coverage ratios increased from 1.38 to 1.42 this quarter. And we saw a similar trend in the stabilized portion of the multifamily portfolio.

與最初的承保預估相比，較高的利率肯定會導致承保比率下降。實際上，我們的投資組合中已經穩定的房產的覆蓋率逐季有所改善。例如，本季我們 85% 的投資者辦公室投資組合趨於穩定，平均償債覆蓋率從 1.38 上升至 1.42。我們在多戶型投資組合的穩定部分也看到了類似的趨勢。

The investor office portfolio, which is still top of mind was relatively flat quarter-over-quarter with $927 million outstanding. It exhibited an average loan-to-value of 52% and an average debt service coverage ratio of 1.42 at current interest rates starting from strong position with a cushion for potential value declines.

仍是投資者關注焦點的辦公室投資組合與上一季相比相對持平，未償付金額為 9.27 億美元。以當前利率計算，其平均貸款價值比為 52%，平均償債覆蓋率為 1.42，處於強勢地位，為潛在價值下跌提供了緩衝。

Our comfort level with the office portfolio continues to be based on the character and experience of our borrowers and sponsors, the predominantly Class A nature of our office buildings and the fact that 85% of the exposure is associated with stabilized well-performing projects. It also helps to be operating in Texas.

我們對辦公大樓投資組合的舒適度仍然取決於借款人和發起人的性格和經驗、我們辦公大樓的主要 A 級性質以及 85% 的風險與穩定、業績良好的專案相關這一事實。在德克薩斯州開展業務也有幫助。

We did have an $18 million office building loan that we've been watching migrate to nonaccrual during the quarter. But overall, the office portfolio and really entire investor CRE portfolio did not experience any identification of anything material in terms of weak or underperforming [credits] or projects that we were not already watching.

我們確實有一筆 1800 萬美元的辦公大樓貸款，我們一直在觀察該貸款在本季度轉為非應計貸款。但總體而言，辦公大樓投資組合和實際上整個投資者的 CRE 投資組合沒有發現任何關於薄弱或表現不佳的[信貸]或我們尚未關注的項目的重大資訊。

So to conclude, as I said earlier, I'm proud of our performance and what our bankers have been able to accomplish as well as the competitive success we continue to exhibit in our markets. And now I'll turn the call over to our Chief Financial Officer, Jerry Salinas, for some additional comments.

總而言之，正如我之前所說，我對我們的業績、我們的銀行家所取得的成就以及我們在市場上繼續展現的競爭成功感到自豪。現在我將把電話轉給我們的財務長傑瑞·薩利納斯（Jerry Salinas），徵求一些補充意見。

Thank you, Phil. I wanted to start off first by talking a little bit about our Houston 1.0 expansion results. As a reminder, the last of those branches was opened in 2021. So these branches are still in, what I call, the development stage. As Phil mentioned, we've been very pleased with the volumes we've been able to achieve. Looking at the second quarter, linked quarter annualized growth in average balances for these locations was 31% for deposits and 17% for loans. And for the second quarter, Houston 1.0 contributed $0.05 to our quarterly earnings per share.

謝謝你，菲爾。我想先談談我們的休士頓 1.0 擴展結果。提醒一下，最後一個分店已於 2021 年開業。因此，這些分店仍處於我所說的開發階段。正如菲爾所提到的，我們對所取得的產量感到非常滿意。從第二季來看，這些地區的存款平均餘額較上季年化成長率為 31%，貸款平均餘額年化成長率為 17%。第二季度，Houston 1.0 為我們的季度每股收益貢獻了 0.05 美元。

Now moving to our net interest margin. Our net interest margin percentage for the second quarter was 3.45% down 2 basis points from the 3.47% reported last quarter. The decrease included some positives that were more than offset by some negatives. On the positive side, higher yields on loans and balances at the Fed combined with higher loan volumes were more than offset by higher cost of deposits and customer repos and lower deposit levels at the Fed compared to the first quarter.

現在轉向我們的淨利差。我們第二季的淨利差率為 3.45%，比上季報告的 3.47% 下降了 2 個基點。這一下降包括一些積極因素，但被一些消極因素所抵消。從積極的一面來看，與第一季相比，聯準會貸款和餘額收益率的上升以及貸款量的增加，被存款和客戶回購成本的上升以及聯準會貸款水準的下降所抵消。

Looking at our investment portfolio. The total investment portfolio averaged $21.3 billion during the second quarter, down $466 million from the first quarter. During the quarter, we did not make any material investment purchases. During the quarter, we sold about $360 million in municipal securities as we took advantage of market dislocations, which allowed us to improve interest income going forward. We recognized a net gain of about $33,000 on those transactions.

看看我們的投資組合。第二季投資組合總額平均為 213 億美元，比第一季減少 4.66 億美元。本季度，我們沒有進行任何重大投資採購。本季度，我們利用市場混亂的機會出售了約 3.6 億美元的市政證券，這使我們能夠提高未來的利息收入。我們確認這些交易的淨收益約為 33,000 美元。

The net unrealized loss on the available-for-sale portfolio at the end of the quarter was $1.61 billion, an increase of $207 million from the $1.4 billion reported at the end of the first quarter. The net unrealized loss on the held-to-maturity portfolio at the end of the quarter was $148 million, up $37 million from the first quarter.

截至本季末，可供出售投資組合的未實現淨虧損為 16.1 億美元，比第一季末報告的 14 億美元增加了 2.07 億美元。截至本季末，持有至到期投資組合的未實現淨虧損為 1.48 億美元，較第一季增加 3,700 萬美元。

The taxable equivalent yield on the total investment portfolio in the second quarter was 3.24%, flat with the first quarter. The taxable portfolio, which averaged $13.8 billion, up approximately $439 million from the prior quarter, had a yield of 2.71%, up 4 basis points from the prior quarter.

第二季總投資組合的應稅等值報酬率為3.24%，與第一季持平。應稅投資組合平均為138億美元，較上季增加約4.39億美元，殖利率2.71%，較上季上升4個基點。

Our tax-exempt municipal portfolio averaged about $7.5 billion during the second quarter down about $905 million from the first quarter and had a taxable equivalent yield of 4.27%, up 4 basis points from the prior quarter. At the end of the second quarter, approximately 72% of the municipal portfolio was pre-refunded or PSF insured. The duration of the investment portfolio at the end of the second quarter was 5.2 years, down from 5.5 years at the end of the first quarter.

第二季度，我們的免稅市政投資組合平均約為 75 億美元，比第一季減少約 9.05 億美元，應稅等值收益率為 4.27%，比上一季上升 4 個基點。截至第二季末，約 72% 的市政投資組合已進行預退款或 PSF 投保。第二季末投資組合久期為5.2年，低於第一季末的5.5年。

Looking at deposits. On a linked-quarter basis, average deposits were down $1.8 billion or 4.1% with about 80% of the decrease coming from noninterest-bearing deposits. I want to talk a little bit more about our noninterest-bearing deposits, which totaled $14.9 billion at the end of the quarter with 96% of that amount being commercial demand deposits.

看看存款。按季度計算，平均存款下降 18 億美元，或 4.1%，其中約 80% 的下降來自無息存款。我想多談談我們的無息存款，截至本季末，無息存款總額為 149 億美元，其中 96% 是商業活期存款。

During the individual months of the second quarter, we did see the average balance in the noninterest-bearing accounts begin to stabilize. During last quarter's call, we said that we expected deposits to continue to decline as this has historically been our seasonal trend that deposits peak in the fourth quarter and reached their low in the second quarter before beginning to grow in the second half of the year.

在第二季的個別月份中，我們確實看到無息帳戶的平均餘額開始穩定。在上個季度的電話會議中，我們表示預計存款將繼續下降，因為這一直是我們的季節性趨勢，即存款在第四季度達到峰值，在第二季度達到最低點，然後在下半年開始增長。

I also noted that April noninterest-bearing deposits were down $492 million from March and that we expected that April average to decline given the anticipated impact of seasonality, including tax payments. April noninterest-bearing balances decreased $587 million from March, almost $100 million more on average than at the time of our call. These average balances then decreased $441 million in May with the average affected by tax payments in April and then decreased $108 million in June and month-to-date through yesterday, July average balances are down $202 million from the June average.

我還指出，4 月無息存款比 3 月減少了 4.92 億美元，考慮到季節性（包括納稅）的預期影響，我們預計 4 月平均存款額將下降。 4 月無息餘額比 3 月減少了 5.87 億美元，比我們召開電話會議時平均增加了近 1 億美元。受 4 月份納稅影響，這些平均餘額在 5 月份減少了 4.41 億美元，然後在 6 月份減少了 1.08 億美元，截至昨天，7 月份平均餘額比 6 月份平均餘額減少了 2.02 億美元。

The June and July average balances have seen the pace of outflow begin to slow down, and we are anticipating that slower pace of outflows to continue. But with interest rates at these levels, there continues to be uncertainty with these customer balances. Customers have attractive risk reward options in this rate cycle that didn't necessarily present themselves in the last cycle, which provides them with multiple options for the utilization of these funds.

6 月和 7 月的平均餘額顯示資金流出速度開始放緩，我們預計流出速度將繼續放緩。但由於利率處於這樣的水平，這些客戶餘額仍存在不確定性。客戶在此利率週期中擁有有吸引力的風險回報選項，而這些選項不一定會在上一個週期中出現，這為他們提供了利用這些資金的多種選擇。

Looking at total interest-bearing deposits, it's been relatively stable during the period. Average interest-bearing deposits were $25.8 billion during the quarter, down $345 million or 1.3% from the first quarter. We do continue to see a shift in the mix to higher cost CDs from the lower cost savings, IOC and MMA. The cost of interest-bearing deposits in the second quarter was 1.87%, up 35 basis points from 1.52% in the first quarter.

從計息存款總額來看，期間內相對穩定。本季平均計息存款為 258 億美元，比第一季減少 3.45 億美元，下降 1.3%。我們確實繼續看到組合從較低成本節省的 IOC 和 MMA 轉向較高成本的 CD。第二季計息存款成本為1.87%，較一季的1.52%上升35個基點。

Customer repos for the second quarter averaged $3.7 billion down $492 million from the $4.2 billion average in the first quarter as we saw some flows out of our repo product, including for tax payments during the quarter. The cost of customer repos for the quarter was 3.52%, up 32 basis points from the first quarter.

第二季的客戶回購平均金額為 37 億美元，比第一季的平均 42 億美元減少了 4.92 億美元，因為我們看到一些資金流出我們的回購產品，包括本季的稅金。本季顧客回購成本為3.52%，較一季上升32個基點。

Looking at noninterest income on a linked quarter basis, I just wanted to point out a couple of items. Trust and investment management fees were up $3.2 million or 9% compared to the first quarter, driven by increases in estate fees of $1.6 million, real estate fees of $751,000 and investment fees of $463,000. Estate fees and real estate fees can fluctuate based on the number of estates settled or properties sold, respectively.

看看關聯季度的非利息收入，我只想指出幾個項目。與第一季相比，信託和投資管理費用增加了 320 萬美元，即 9%，主要原因是遺產費增加了 160 萬美元，房地產費用增加了 751,000 美元，投資費用增加了 463,000 美元。遺產費和房地產費可能分別根據已結算的遺產或出售的房產數量而波動。

Insurance commissions and fees were down $6 million or 32% from the first quarter driven by lower P&C contingent bonuses down $3.1 million, benefit commissions down $4.8 million and live commissions down $867,000. Partly offsetting these unfavorable variances was a $3 million increase in P&C commissions when compared to the first quarter.

保險佣金和費用較第一季下降 600 萬美元，或 32%，原因是財產和意外險或有獎金下降 310 萬美元，福利佣金下降 480 萬美元，即時佣金下降 867,000 美元。與第一季相比，財險佣金增加了 300 萬美元，部分抵消了這些不利的差異。

As a reminder, the first quarter is typically our strongest quarter for insurance revenues, given we typically recognize contingent income in that quarter and are also impacted by our natural business cycle. The second quarter is typically our weakest quarter for insurance revenues, again, impacted by our normal renewal business volumes.

提醒一下，第一季通常是我們保險收入最強勁的季度，因為我們通常會在該季度確認或有收入，並且也受到自然商業週期的影響。第二季度通常是我們保險收入最弱的季度，同樣受到我們正常續保業務量的影響。

Looking at our projection of full year 2023 total noninterest expenses, as I mentioned last quarter, we currently expect total noninterest expense for the full year 2023 to increase at a percentage rate in the mid-teens over our 2022 reported levels. This does not include the potential impact of the FDIC special assessment, which has not yet been finalized.

看看我們對2023 年全年非利息支出總額的預測，正如我上季度提到的，我們目前預計2023 年全年非利息支出總額將比2022 年報告的水平以百分之十左右的百分比增長。這還不包括 FDIC 特別評估的潛在影響，該評估尚未最終確定。

The effective tax rate for the first 6 months of the year was 16% or about 16.2% excluding discrete items. Our current expectation is that our full year effective tax rate for 2023 should approximate 16%, but that can be affected by discrete items during the rest of the year.

今年前 6 個月的有效稅率為 16%，不包括離散項目的稅率約為 16.2%。我們目前的預期是 2023 年全年有效稅率應約為 16%，但這可能會受到今年剩餘時間的離散項目的影響。

Regarding our stock buyback, I want to mention that during the second quarter, we utilized about $28 million of our $100 million approved share repurchase plan to buy back approximately 280,000 shares at an average price of $96.02.

關於我們的股票回購，我想提一下，在第二季度，我們利用了已批准的 1 億美元股票回購計劃中的約 2800 萬美元，以平均價格 96.02 美元回購了約 280,000 股。

Regarding the estimate for full year 2023 earnings, our current projections don't include any additional changes to the Fed funds rate through the rest of 2023. Given that rate assumption and our expectation of 2023 noninterest expense growth of mid-teens, which does not include the impact of the FDIC special assessment, we currently believe that the current mean of analyst estimates of $9.63 is a little high. With that, I'll now turn the call back over to Phil for questions.

關於2023 年全年收益的預測，我們目前的預測不包括2023 年剩餘時間內聯邦基金利率的任何額外變化。考慮到這一利率假設以及我們對2023 年非利息支出增長10% 左右的預期，這並不意味著考慮到 FDIC 特別評估的影響，我們目前認為分析師目前預估的均值 9.63 美元有點高。現在，我將把電話轉回菲爾詢問問題。

Thanks, Jerry. Now we'll open it up for your questions.

謝謝，傑瑞。現在我們將打開它來回答您的問題。

(Operator Instructions) Today's first question is coming from Brady Gailey of KBW.

（操作員說明） 今天的第一個問題來自 KBW 的 Brady Gailey。

So your net interest margin has held in very well, especially relative to the industry, which saw NIM slippage by a decent amount this quarter for most of your peers. Do you expect the net interest margin to continue to hold in relatively well? Or do you think that at some point, you will see some real downside there?

因此，你們的淨利差保持得很好，尤其是相對於行業而言，本季大多數同業的淨利息收益率都出現了相當大的下滑。您預計淨利差將持續維持在相對較好的水準嗎？或者您認為在某個時候您會看到一些真正的缺點嗎？

What I'd say, Brady, I thought that last quarter, I said it was going to be relatively stable. I think I'd stick with that, except that I would say that there's a downward bias. As you know when I talked about the 2 basis point decrease that we had between the first and the second quarter, all those positives and negatives are still kind of affecting us going forward. So I'd say kind of stable, but again, with probably more towards a little bit negative bias. But I don't see it changing significantly, not based on anything I'm seeing.

我想說的是，布雷迪，我認為上個季度，我說過它會相對穩定。我想我會堅持這一點，只是我會說有向下的偏見。如您所知，當我談到第一季和第二季之間的 2 個基點下降時，所有這些正面和負面因素仍然會影響我們的未來。所以我會說有點穩定，但同樣，可能更多的是有點負面偏見。但我認為它並沒有發生重大變化，這並不是基於我所看到的任何事情。

Okay. And then I know in the past, you guys have talked about some of the financial impacts of expanding into a new market like Austin. I don't think they've moved the numbers a ton, but any guess on the financial impact of the Austin expansion over the next year or two2?

好的。我知道過去你們談論過擴展到奧斯汀這樣的新市場的一些財務影響。我不認為他們對數字做了很大的改變，但是對奧斯汀擴張在未來一兩年的財務影響有何猜測2？

Brady, we would -- we'll talk about that in January. We really would give some guidance. And obviously, it's going to be primarily expense based at the beginning, as you know, as we start putting those locations together. I don't expect for 2023 that they'll have a significant impact. So any impact, we'll start feeling next year, and we'll kind of give some color at the beginning of the year.

布雷迪，我們會在一月份討論這個問題。我們確實會提供一些指導。顯然，正如您所知，當我們開始將這些地點放在一起時，一開始將主要基於費用。我預計到 2023 年它們不會產生重大影響。因此，任何影響，我們都會在明年開始感受到，並且我們會在年初給出一些色彩。

Yes, I just might add, Brady, that just the scope of it's a little bit smaller, just by its nature than Dallas or Houston, the expansions that we've had there. So pound for pound, it will be about the same, but the scope of it just a little bit smaller.

是的，我可能會補充一點，布雷迪，就其性質而言，它的範圍比達拉斯或休斯頓我們在那裡的擴張要小一些。因此，一磅一磅，它會大致相同，但它的範圍稍微小一點。

Okay. And then finally for me, NPAs are up. They're still at a very low level, but I think I heard you mention 2 credits move into the NPA bucket. One was an $18 million office loan. What was the other NPA that went into that bucket this quarter?

好的。最後對我來說，NPA 增加了。它們仍然處於非常低的水平，但我想我聽到你提到 2 個學分轉移到 NPA 桶中。其中一項是 1800 萬美元的辦公室貸款。本季進入該桶的其他不良資產是什麼？

Yes. It was in the [Preowned Auto Sale] dealership and the higher interest rates really impacted its carry costs and also the performance of some of the paper that it carries. And -- so we thought it was appropriate to recognize that. So it wasn't real estate related, but it was in the automobiles area.

是的。它位於[二手車銷售]經銷店，較高的利率確實影響了其持有成本以及其持有的一些紙張的性能。而且——所以我們認為認識到這一點是適當的。所以它與房地產無關，而是在汽車領域。

The next question is coming from Steven Alexopoulos of JPMorgan.

下一個問題來自摩根大通的史蒂文·阿萊克索普洛斯。

I want to start. So on the noninterest-bearing deposits last quarter, you guys thought, would come down in 2Q and then stabilize, and we're seeing continued outflows. I'm just curious, what's taking customers so long to just reach that amount of operating cash that they need. If [I am hard to believe] what every move, they're like digging deeper and deeper. I would have thought it would pretty much be done by now.

我想開始。因此，就上個季度的無息存款而言，你們認為，第二季度會下降，然後穩定下來，我們看到資金持續流出。我只是好奇，是什麼讓客戶花了這麼長時間才達到他們需要的營運現金數量。如果[我很難相信]他們的每一個舉動，就像挖得越來越深。我以為現在已經差不多完成了。

I think, Steven, it's -- as I've said in my comments, I think the rate environment that we're in is so unique and so different. There's a lot more opportunities for them to invest that money, it's -- really impressive rates. And -- so even though I said that in my mind, $200 million is certainly better than the $500 million and $600 million decreases that we were seeing, but I do think that there continues to be volatility there.

我認為，史蒂文，正如我在評論中所說，我認為我們所處的利率環境如此獨特和不同。他們有更多的機會來投資這些錢，利率確實令人印象深刻。而且，儘管我說過，在我看來，2 億美元肯定比我們看到的 5 億美元和 6 億美元的減少要好，但我確實認為那裡仍然存在波動。

I think there's just too many options for them to utilize that fund -- those funds, whether it's to pay off any debt that they might have or decide to invest it. And investment could certainly be and we've seen some dollars obviously flow into our off-balance sheet either trust areas or treasury areas.

我認為他們有太多的選擇來利用該基金——這些基金，無論是償還他們可能擁有的任何債務還是決定進行投資。投資肯定是可能的，我們已經看到一些美元明顯流入我們的資產負債表外信託領域或財務領域。

So I think I'm with you, I kind of thought most of it was gone. But I think in the environment, we're going to continue to see some pressure there. I think the upside for us is, as Phil mentioned, we really feel very positive about all the new relationships that we're bringing in. We see some pretty impressive deposit wins. And in some cases, those commercial wins take a little bit longer to get on the books and get them closed. But I think in this rate environment, we're just going to continue to be cautious and I think everybody is going to have to make the decision on how they want to invest those funds. And all we can really do is to continue to focus on growing the business and adding new customers.

所以我想我跟你在一起，我想大部分都已經消失了。但我認為在環境方面，我們將繼續看到一些壓力。我認為，正如菲爾所提到的那樣，我們的好處是，我們對我們引入的所有新關係感到非常積極。我們看到了一些相當令人印象深刻的存款勝利。在某些情況下，這些商業勝利需要更長的時間才能記錄並完成。但我認為在這種利率環境下，我們將繼續保持謹慎，我認為每個人都必須決定如何投資這些資金。我們真正能做的就是繼續專注於發展業務和增加新客戶。

Okay. And then on the balance sheet, you guys had good loan growth in the quarter, more or less funded with securities. If you just look at the movements on the asset side. As we think about the back half, Jerry, is maybe these noninterest-bearing outflow subside a bit, do you think we'll see net balance sheet growth in the second half? Or will you just continue to fund loan growth with other assets that run off?

好的。然後在資產負債表上，你們本季的貸款成長良好，或多或少是透過證券融資的。如果只看資產端的走勢。當我們考慮下半年時，傑瑞，這些無息流出可能會有所減弱，您認為下半年我們會看到資產負債表淨增長嗎？或者您會繼續用其他流失的資產來為貸款成長提供資金嗎？

I think that we're projecting some small growth on the funding side at this point. Nothing really material, again, given the uncertainty that we've got on the commercial side. Our projections really do have some growth, but it's not anything that I would say is significant.

我認為我們目前預計資金方面會出現一些小幅成長。考慮到商業方面的不確定性，沒有什麼真正重要的。我們的預測確實有一些成長，但我認為這並不重要。

Okay. And then final one. So Phil, I appreciate all of the line items that you ran through by market in terms of customers that you guys are picking up. I'm curious, so your service is consistently good. Peers are consistently not as good. What is it about this environment that you're seeing so many customers move banks?

好的。然後是最後一張。菲爾，我很欣賞你們按市場劃分的所有項目，以及你們所吸引的客戶。我很好奇，所以你們的服務一直都很好。同齡人始終沒有那麼好。在這種環境下，您看到如此多的客戶轉向銀行，到底是什麼原因造成的？

Yes. Steven, I think it's a couple of things, primarily. When you look at our movement in terms of growth in new relationships, the expansion, no doubt, has a really big effect on that. And I think it's really paying off in terms of growing those relationships overall. We've also been spending more and focus more on marketing. I think we're doing a better job on marketing.

是的。史蒂文，我認為主要有幾件事。當你從新關係成長的角度來看待我們的運動時，毫無疑問，擴張對此產生了非常大的影響。我認為，就整體發展這些關係而言，這確實得到了回報。我們也投入更多資金並更重視行銷。我認為我們在行銷方面做得更好。

And then reputationally, just to be honest, we've got a great reputation and reputation for great service. So it's been pretty exciting as we've moved into some of these markets. In some cases, we won't -- I was thinking about one we opened up and I think is Dallas just recently. I think the closest Frost bank was 15 miles away and the growth has just been tremendous.

然後在聲譽方面，老實說，我們因優質服務而享有盛譽和聲譽。因此，當我們進入其中一些市場時，這是非常令人興奮的。在某些情況下，我們不會——我正在考慮我們最近開設的一個，我想是最近在達拉斯。我認為最近的弗羅斯特河岸在 15 英里之外，而且增長速度非常驚人。

So it's -- I think it's really simple. I think we are investing in our business. We're growing our distribution in fantastic markets. We've got a great value proposition for service and that's just -- and we're marketing and investing in marketing and technology. I think it's just all working together to win.

所以我認為這非常簡單。我認為我們正在投資我們的業務。我們正在擴大我們在出色市場的分銷。我們對服務有一個巨大的價值主張，那就是——我們正在行銷和投資於行銷和技術。我認為只有齊心協力才能取得勝利。

And I apologize for giving so much granularity on that. But it just shows that, that's really what we're focused on, is new relationships. It's part of our mission statement that's called out. And we're going to go through rate cycles up and down and we're going to see movements of noninterest-bearing deposits out and all that stuff, that's going to happen. But if we just focus on growing the business, growing the relationships in great markets, we're going to do fine.

我很抱歉在這個問題上給出瞭如此多的細節。但這只是表明，我們真正關注的是新的關係。這是我們使命宣言的一部分。我們將經歷利率上下波動的周期，我們將看到無息存款的流出以及所有這些事情，這將會發生。但如果我們只專注於發展業務、發展大市場中的關係，我們就會做得很好。

The next question is coming from Dave Rochester of Compass Point.

下一個問題來自 Compass Point 的 Dave Rochester。

Just going back to your EPS outlook comment for '23. I know you mentioned the stable NIM with a downward bias. So that was helpful to hear. I was just wondering how you're expecting that to translate into NII trends for the back half of the year at this point? Are you thinking stablish NIM and stable funding, what you just mentioned would get you to stablish NII? Or how are you thinking about that at this point, as you look at your EPS outlook?

回到你對 23 年 EPS 展望的評論。我知道你提到了穩定的淨利差，但有向下的傾向。所以聽到這很有幫助。我只是想知道您預計這會如何轉化為今年下半年的 NII 趨勢？您是否正在考慮建立NIM和穩定的資金，您剛才提到的會讓您建立NII？或者，當您審視每股盈餘前景時，目前對此有何看法？

Yes. I guess the thing that I would focus on is kind of where we ended the quarter on the deposit side. I mentioned to Steven that we're not projecting a whole lot of growth from there for the rest of the year. And so that obviously will have some impact on net interest income. So I think that's really where the pressure is.

是的。我想我要關注的是我們在存款方面結束本季的情況。我向史蒂文提到，我們預計今年剩餘時間不會大幅成長。因此，這顯然會對淨利息收入產生一些影響。所以我認為這確實是壓力所在。

Okay. And then regarding deposit trends, you said earlier, it sounded like you're baking in marginal deposit growth or marginal funding growth, I guess, in the back half. Are you assuming that DDA continues to decline through that period as well? I know you mentioned that the runoff has subsided a bit. But is that the general expectation now you continue to have mix shift through the end of the year?

好的。然後關於存款趨勢，您之前說過，我想，聽起來您在後半段正在推動邊際存款成長或邊際融資成長。您是否認為 DDA 在此期間也持續下降？我知道你提到徑流已經減弱。但這是現在的普遍預期嗎？在今年底之前，您將繼續進行混合轉型嗎？

Yes. And again, we're projecting growth. But I think that on an annualized basis, I think we're at 2% or something like that, that we're projecting. What's interesting is 1% of that is our legacy bank and 1% is coming from our expansion. So obviously, they're having an impact on our growth. But that aside, I think that gives you some perspective on the side of -- the size of the deposit side that we're projecting. And I think the mix -- I would expect that it probably will not change a whole lot. But if there is a movement, I would expect the pressure continues to be more on the noninterest-bearing side than on the interest-bearing side. And on the interest-bearing side, I think we're starting to see some settlement there on rates, but with this rate hike, we'll actually obviously react to that. But I think you'll still see some movement of mix. But it appears everything is stabilizing certainly a lot more than we saw just a quarter ago.

是的。我們再次預測成長。但我認為，按年化計算，我們預計成長率為 2% 或類似水準。有趣的是，其中 1% 是我們的傳統銀行，1% 來自我們的擴張。顯然，它們正在對我們的成長產生影響。但除此之外，我認為這讓您對我們預測的存款規模有了一些看法。我認為這種組合——我預計它可能不會發生太大變化。但如果出現變動，我預期無息方面的壓力將繼續大於有息方面。在計息方面，我認為我們開始看到一些利率解決方案，但隨著這次升息，我們實際上會明顯對此做出反應。但我認為你仍然會看到一些混合的變化。但看起來一切都比我們一個季度前看到的穩定得多。

Yes. Okay. And then just given where we are in the rate cycle, have you guys been reducing asset sensitivity at all in the past quarter? Or do you have any plans to do that in the back half of the year, just with swaps or anything else?

是的。好的。然後考慮到我們在利率週期中所處的位置，你們在過去一個季度是否降低了資產敏感度？或者你有計劃在今年下半年做到這一點，只是透過掉期或其他方式嗎？

I think right now, we're really kind of sitting tight. We're obviously looking at a lot of opportunities and things that we can do. But at this point, I wouldn't envision that we're doing anything very drastic. Obviously, asset sensitivity is diminishing as the balances that we're holding at the Fed are diminishing as we're seeing the decreases in noninterest-bearing deposits. But other than that, not doing anything actively.

我想現在我們真的是坐穩了。顯然，我們正在尋找很多機會和我們可以做的事情。但在這一點上，我不認為我們會做任何非常激烈的事情。顯然，資產敏感性正在下降，因為我們在聯準會持有的餘額正在減少，因為我們看到無息存款的減少。但除此之外，沒有主動做任何事。

Okay. And then maybe just one last one on expenses. I appreciated the reiterated guide there. It seems like just given where we are in the first half, you're looking for a pretty deep ramp up in the second half. Is that kind of what you guys are looking at, at this point? Is that likely to see that kind of a ramp-up?

好的。然後也許只是最後一項關於費用的問題。我很欣賞那裡重申的指南。看起來，鑑於我們在上半場的處境，你正在尋找下半場的大幅提升。你們現在正在看的就是這種情況嗎？是否有可能出現這種增長？

Yes. That's kind of what we're seeing. We obviously review our projections monthly and talking to our lines of business and everything that we're seeing certainly is pointing us in that direction.

是的。這就是我們所看到的。顯然，我們每月都會審查我們的預測，並與我們的業務部門交談，我們所看到的一切肯定都在為我們指明這個方向。

The next question is coming from Manan Gosalia of Morgan Stanley.

下一個問題來自摩根士丹利的馬南·戈薩利亞。

I wanted to ask about the liquidity and the cash balance in the quarter. I know the average was about $7 billion, which was, I think, sort of in line with where you had indicated balances were back in April. So is it fair to say that you didn't utilize any of that through the quarter. And now that the environment has stabilized, do you plan to continue -- would you use cash to support loan growth and deposit outflow? Or just given where Fed rates are, does it sort of make sense to keep cash at 5% and continue to let the securities level come down?

我想問一下本季的流動性和現金餘額。我知道平均值約為 70 億美元，我認為這與您在 4 月表示的餘額情況相符。因此，可以公平地說，您整個季度都沒有使用其中的任何內容。現在環境已經穩定下來，您是否打算繼續使用現金來支持貸款成長和存款流出？或者僅僅考慮到聯準會的利率水平，將現金維持在 5% 並繼續讓證券水準下降是否有意義？

Yes, that's really where we are right now. I think that's the sort of guidance we gave last quarter. And you heard me say we didn't make any investment purchases. I think at this point, any decrease that we've seen in the cash balances at the Fed. And I think we were at the end of the quarter, we were down to $6.3 billion, a little under 16% of our deposit balances. So at this point, I think we're pretty comfortable with that. As you said, looking at the [$540 million] that we're earning now, we're not looking to make any active moves on the investment portfolio at this point.

是的，這就是我們現在的處境。我認為這就是我們上季度給出的指導。你聽到我說我們沒有進行任何投資購買。我認為在這一點上，我們看到美聯儲現金餘額的任何減少。我認為到本季末，我們的存款餘額已降至 63 億美元，略低於存款餘額的 16%。所以在這一點上，我認為我們對此感到非常滿意。正如您所說，考慮到我們現在賺取的 [5.4 億美元]，我們目前不打算對投資組合採取任何積極舉措。

So can you remind us how much the securities portfolio -- how much of that should mature every quarter for the next year or so?

那麼，您能否提醒我們，在接下來的一年左右的時間內，每個季度應該有多少證券投資組合成熟？

I think for the rest of the year, I think we're at $720,000 -- excuse me, $1 million, say, $715 million with really $250 million of it, so 1/3 of it is a little bit more than 1/3 on the last day of the month. So the last part of '23 -- second half of '23 is what I'd call a normal amount. As we look at '24, we're probably talking something in the neighborhood of $3 billion for the year.

我想今年剩下的時間裡，我們的收入是 72 萬美元——對不起，100 萬美元，比如說 7.15 億美元，其中 2.5 億美元，所以 1/3 比 1/3 略多一點在該月的最後一天。所以23年的最後一部分──23年的後半段我稱之為正常量。當我們展望 24 年時，我們談論的可能是今年約 30 億美元的收入。

The next question is coming from Peter Winter of D.A. Davidson.

下一個問題來自 D.A. 的 Peter Winter。戴維森。

I was curious, what's the outlook for the deposit beta. I think the original forecast was 32%. And then secondly, do you think that there will be pressure on this deposit beta next year as we're in kind of a higher for longer rate environment and your interest rates on deposits are a little bit lower than peers.

我很好奇存款測試版的前景如何。我認為最初的預測是32%。其次，您認為明年的存款貝塔值是否會面臨壓力，因為我們處於長期利率較高的環境中，而且您的存款利率略低於同業。

Our cumulative beta through -- on interest-bearing deposits through the second quarter was 37%, up from 33% in the first quarter on total deposits, that translates to 23% at the end of the second quarter versus 20%. I would expect we would go up to somewhere by the end of the year, say, in the 39% given this last rate hike that we're dealing with. I think that's comparable to what we've looked at -- what we've done historically, say the average of the last 2 cycles.

我們第二季計息存款的累積貝塔值為 37%，高於第一季總存款的 33%，也就是說第二季末為 23%，而第二季末為 20%。鑑於我們正在處理的最後一次升息，我預計到今年年底，我們的利率將達到 39%。我認為這與我們所看到的——我們歷史上所做的——比如過去兩個週期的平均值——相當。

But looking at 2024, not really in this environment, not expecting, Peter, that we'd have to do much. Again, it will be interesting to see where we're at come January and what our expectations are. But I don't envision. We've kept up with the deposit pricing and tried to be fair and obviously have gone out early to provide our customers with a fair deal.

但展望 2024 年，並不是在這種環境下，彼得，我們並沒有想到我們必須做很多事情。同樣，看看我們一月份的情況以及我們的期望是什麼，將會很有趣。但我不這麼想。我們一直在跟上存款定價，並努力做到公平，顯然已經提前為我們的客戶提供了公平的交易。

So I don't expect that once -- if the Fed has stopped hiking, I don't expect that we're going to have to do a lot of continuing to increase our betas, if you will, or increase our deposit rates after the hike stuff. So no, I don't really expect much change. We'll have to see, obviously. We're going to want to make sure that we continue to be competitive with our peers. That's the one thing that we want to make sure. But at this point, if I had a crystal ball, I'm not seeing a lot of pressure there at this point.

所以我不認為一旦聯準會停止升息，我不認為我們將不得不做很多事情來繼續提高我們的貝塔係數（如果你願意的話），或者在之後提高我們的存款利率。遠足的事情。所以不，我真的不期望有太大的改變。顯然，我們必須看看。我們希望確保我們繼續與同行競爭。這是我們想要確定的一件事。但在這一點上，如果我有一個水晶球，我此時不會看到很大的壓力。

Okay. And then I just want to ask big picture, I'm just a little bit surprised that maybe the deposit outlook is not a little bit stronger. I mean I realize what the environment is like, but every quarter, you guys keep having this record new account growth, both on the commercial bank, the consumer bank, the success with the branch build-out expansion and that's starting to take hold. I'm just wondering why the deposit outlook is just not a little bit stronger with all this growth?

好的。然後我只是想問一下大局，我只是有點驚訝，也許存款前景並不是更強勁。我的意思是，我意識到環境是什麼樣的，但每個季度，你們都在保持創紀錄的新帳戶增長，無論是在商業銀行、消費者銀行，還是在分行擴建擴張方面取得了成功，而且這種情況正在開始生根。我只是想知道為什麼存款前景在如此增長的情況下一點也不強勁？

Well, I think one thing, Peter, is that we need to consider, as we answer the question, I'd say from a broad perspective, I can't say exactly why, but one thing I can say is that we tend to have a lot more operational transactional accounts, demand deposit accounts, checking accounts than peers. And I think those are more susceptible to opportunities that Jerry has talked about. So I think we've got to work our way through that. And then I think once we touch bottom, you'll get to see movement up. I'm confident that we're going to see traction from these new relationships.

好吧，我認為一件事，彼得，我們需要考慮，當我們回答這個問題時，我會從廣泛的角度說，我不能確切地說出為什麼，但我可以說的一件事是，我們傾向於於擁有比同業更多的營運交易帳戶、活期存款帳戶、支票帳戶。我認為這些人更容易受到傑瑞談到的機會的影響。所以我認為我們必須想辦法解決這個問題。然後我認為一旦我們觸底，你就會看到上漲。我相信我們將看到這些新關係的牽引力。

One thing we saw early in the Houston expansion was that when we looked at our performance versus goal on deposits, we were better on relationships, but we were under our goal in commercial deposits as far as balance. And one thing that we learned was getting the relationship is one thing, but they've got to -- and this is on the commercial side, you've got to go through getting your customers to send their payments to a different place. There's just a lot of operational things that have to happen before you, as a business, see the full effect of being the primary checking account take place. And so I think that's part of it. And -- but what we've seen is as we've grown relationships historically, we'll see the -- we'll see more and more of that company's business go through there. And I'm confident we're going to see that..

我們在休士頓擴張初期看到的一件事是，當我們比較我們的業績與存款目標時，我們在關係方面做得更好，但就平衡而言，我們在商業存款方面低於我們的目標。我們了解到的一件事是建立關係是一回事，但他們必須這樣做——這是在商業方面，你必須讓你的客戶將付款發送到不同的地方。作為一家企業，在您看到作為主要支票帳戶的全部效果之前，必須先進行許多操作操作。所以我認為這是其中的一部分。而且 - 但我們所看到的是，隨著我們歷史上關係的發展，我們將看到 - 我們將看到該公司越來越多的業務通過那裡。我相信我們會看到這一點..

Remember. We don't count a relationship unless we get the primary checking account. We'll do business with people. We get different aspects of their business. But you don't get to count it as a relationship unless you get the primary check.

記住。除非我們獲得主要支票帳戶，否則我們不會算是關係。我們將與人做生意。我們了解他們業務的不同面向。但除非你得到主要檢查，否則你不能將其視為一種關係。

The next question is coming from Brandon King of Truist Securities?

下一個問題來自 Truist Securities 的 Brandon King？

So I wanted to talk about the [$18] million office loan. And could you please provide us with some details as far as what potentially makes that loan or property different from the rest of your office CRE portfolio?

所以我想談談[18]百萬美元的辦公室貸款。您能否向我們提供一些詳細信息，說明該貸款或房產與您辦公室 CRE 投資組合的其他部分有何不同？

Okay. Well, in the case of this one particular asset, it's one that lost a major tenant, and it was one that is a new relationship for us and that it came on right before COVID. It came over -- I think it was in January of 2020. And so there's not that same type of history, a good reputational group, but not the same kind of [history] with us. And as they lost that tenant and then their debt service coverage numbers suffered as a result, we felt like they needed to rightsize it to a certain extent. They didn't agree with it and they were willing to do a smaller amount. So it's been restructured and it's got -- it will perform for the next year, but not to the level that we think it should. And so we've got that on a nonaccrual. It was basically you just had a disagreement between the parties on what they should do as far as rightsizing the project.

好的。嗯，就這特定資產而言，它失去了一位主要租戶，對我們來說這是一種新的關係，而且它是在新冠疫情爆發之前出現的。它結束了——我想是在 2020 年 1 月。所以沒有相同類型的歷史，沒有良好聲譽的團體，但與我們不同類型的[歷史]。當他們失去那個租戶，然後他們的償債覆蓋範圍數字受到影響時，我們覺得他們需要在一定程度上調整規模。他們不同意，願意少做一些。所以它已經進行了重組，並且它將在明年發揮作用，但沒有達到我們認為應該達到的水平。因此，我們將其視為非應計利息。基本上，雙方只是在調整專案規模方面應該做什麼存在分歧。

In terms of the asset itself, it is an office building loan, but we booked it at the amount of the underlying real estate, and it is a tremendous piece of real estate in a very dynamic area of Houston. And so I'm not concerned about valuation losses of any significance. But because of where we are and because it does cash flow to the place that we feel it needs to be, we put it on nonaccrual.

就資產本身而言，它是一筆辦公大樓貸款，但我們以基礎房地產的金額預訂，這是休士頓一個非常活躍的地區的巨大房地產。因此，我並不擔心任何重大的估值損失。但由於我們所處的位置，而現金流確實流向了我們認為需要的地方，因此我們將其設為非應計利息。

And as far as what's different, I mean, I mean, look, rates are higher, and we've got a tremendous amount of projects, and they're not all going to be perfect. And you could end up -- I think we've talked before maybe as I recall, you could have a property that is an industrial property with a Fortune 500 credit tenant, long-term lease and underwritten before COVID or the current increases in rates, that looks great, right? But at the present value of that lease stream today is less. And so equity suffers in the project and those types of things, and they've got to get worked out. And we'll just see how they work out. Do we think there'll be significant impact on loss? No. But we're watching credits that look like that.

至於不同之處，我的意思是，我的意思是，看，費率更高，我們有大量的項目，但它們並不都是完美的。你最終可能會——我想我們之前談過，也許我記得，你可能擁有一處工業地產，擁有財富 500 強信用租戶、長期租賃並在新冠疫情或當前利率上漲之前承保，看起來很棒，對吧？但目前該租賃流的價值較低。因此，專案和此類事情的公平性受到影響，必須解決這些問題。我們將看看他們的表現如何。我們認為這會對損失產生重大影響嗎？不。但我們正在看類似這樣的片尾字幕。

You might have a senior housing property that is kind of a different deal, but I mean, again, this is a lending business. There are all kinds of things that happen. It's a risk business. There are lots of properties that are being impacted. And the main thing that we're doing is we're relying on the underwriting that we did go (inaudible) and the people that are backing up, the vast majority of which have been long-term customers. So are we going to see some dislocation here and there? Sure, we are. But do things look good today on a historical basis? And are we happy with the underwriting that we've done over time? I am. And we'll just see how it goes out over the cycle.

你可能擁有一套高級住房，這是一種不同的交易，但我的意思是，這又是一項貸款業務。各種各樣的事情都會發生。這是一項有風險的業務。有很多財產受到影響。我們正在做的主要事情是我們依靠我們確實進行的承保（聽不清楚）和支援的人，其中絕大多數是長期客戶。那麼我們會到處看到一些混亂嗎？當然，我們是。但從歷史的角度來看，今天的情況看起來不錯嗎？我們對我們長期以來所做的承保感到滿意嗎？我是。我們將看看它在整個週期中的表現如何。

Got it. Very helpful. And then my follow-up question is on the share repurchases in the quarter. Just kind of what led to that decision and kind of what kind of appetite do you have for the rest of the year?

知道了。很有幫助。然後我的後續問題是關於本季的股票回購。是什麼導致了這個決定以及您對今年剩餘時間有什麼樣的興趣？

We really just -- at the price, like I said, we were at $96, and we just thought it was a deal that we really couldn't pass up. Obviously, we didn't spend all of it. We just thought -- given where the price was, we thought it was a great value for us and we took advantage of that. At this point, we'll be opportunistic. We'll just -- if something like that happens, again, we may take advantage. But at this point, nothing planned.

我們真的只是——就像我說的那樣，我們的價格是 96 美元，我們只是認為這是我們真的不能放棄的交易。顯然，我們並沒有花掉所有的錢。我們只是想——考慮到價格，我們認為這對我們來說很有價值，所以我們利用了這一點。在這一點上，我們將是機會主義的。我們只是——如果類似的事情再次發生，我們可能會利用這一點。但目前還沒有任何計劃。

Jerry is a great example of those people using those demand deposit balances.

傑瑞是那些使用活期存款餘額的人的一個很好的例子。

The next question is coming from Brody Preston of UBS.

下一個問題來自瑞銀集團的布羅迪普雷斯頓。

I was hoping to follow up just on the securities question. I just wanted to confirm what you said that it was $750 million. Was that through the rest of the year with the large chunk at the -- like on -- like 12/31 and then $3 billion next year. Am I hearing that correctly?

我希望僅就證券問題進行跟進。我只是想確認一下你所說的7.5億美元。今年剩下的時間裡，大筆資金是在 12 月 31 日，然後是明年 30 億美元嗎？我聽得對嗎？

Yes sir, you got it. Exactly.

是的，先生，您明白了。確切地。

All right. Great. Do you happen to know what the yield on the securities that's rolling off is?

好的。偉大的。您是否知道正在滾動的證券的收益率是多少？

We -- I can tell you some right off the top of my head. We bought $1 billion. We talked about this. We bought $1 billion in treasury securities 2 years ago, I guess, 1.5 years now when there was a conversation about Russia invading Ukraine. And we could -- we made that purchase as a defensive posture, obviously, I wouldn't make it -- wouldn't have made it. We -- today, we did that at 1%. So that first $250 million comes off at the end of the year, and it's at 1% -- [102%], I think it is. And then the next $750 million of that -- those proceeds come in within the first few weeks of January, again, at that same 102% .

我們——我可以立即告訴你一些。我們買了10億美元。我們討論過這個。兩年前，我猜，現在是 1.5 年前，當時有關於俄羅斯入侵烏克蘭的討論，我們買了 10 億美元的國債。我們可以──我們以防禦姿態進行購買，顯然，我不會這麼做──不會這麼做。今天，我們以 1% 的速度做到了這一點。因此，第一批 2.5 億美元將在年底支出，我認為是 1%——[102%]。然後接下來的 7.5 億美元——這些收益會在 1 月的前幾週內到位，同樣是 102%。

Got it. Okay. And I think you said earlier that you weren't being too aggressive on new purchases, but in terms of adding to the size of the book, but -- is it safe to assume that you would look to replace that $3.75 billion over the next 18 months? Would you just look to kind of replace that? Or are you trying to move the size of the securities portfolio lower?

知道了。好的。我想您之前說過，您在新採購方面並沒有過於激進，但在增加賬簿規模方面，但是——可以安全地假設您會在接下來的時間內更換這 37.5 億美元嗎？18個月？你會想找個替代品嗎？還是您試圖降低證券投資組合的規模？

I think all things being equal, and by that, again, we're talking about deposits a lot today and assuming that we've reached some sort of stabilization and start to grow. I think the quick response would be we would look to replace it. But I think until we get to that point in time, we'll have to see what else is going on in the balance sheet and make our decision at that point. But obviously, that could be a great positive or will be a great positive impact to NIM -- and to net interest income in '24, just even if we kept it at the Fed.

我認為在所有條件相同的情況下，我們今天再次大量討論存款，並假設我們已經達到某種穩定性並開始成長。我認為快速反應是我們會尋求更換它。但我認為，在我們到達那個時間點之前，我們必須看看資產負債表中還發生了什麼，並在那時做出決定。但顯然，這可能會對 NIM 以及 24 年的淨利息收入產生巨大的正面影響，即使我們將其保留在聯準會。

Got it. And is there any bias towards any type of security? I know you have a lot of the [community] bonds in Texas. I just didn't know if you would look to kind of replace treasury with treasury or it was anything more complex than that?

知道了。對任何類型的安全性是否有偏見？我知道你們在德州有很多[社區]債券。我只是不知道您是否會考慮用國庫券來代替國庫券，還是有比這更複雜的事情？

Yes, I think we would really evaluate at that point with our investment committee, what made sense, what -- where we saw the most value. So we don't have anything that we'd say or we're necessarily going to replace the treasury with the treasury. We're going to see where we think there's more value -- most value in the market.

是的，我認為我們會與我們的投資委員會一起真正評估什麼是有意義的，什麼是我們看到最大價值的地方。所以我們沒有什麼要說的，或者我們必須用國庫取代國庫。我們將看看我們認為哪裡有更多的價值——市場上最有價值的地方。

(Operator Instructions) . The next question is coming from Jon Arfstrom of RBC Capital Markets.

（操作員說明）。下一個問題來自加拿大皇家銀行資本市場的喬恩‧阿夫斯特羅姆 (Jon Arfstrom)。

Just a few random ones here. On the credit question, Phil or Jerry, what should we expect on nonperformers? I know these 2 kind of feel like random and very different credits, but what do you guys see in terms of stress in the portfolio? And do we -- maybe it's obvious, but do we just expect it to continue to rise?

這裡只是一些隨機的。關於信用問題，菲爾或傑瑞，我們對不良企業應該有什麼期望？我知道這兩種感覺像是隨機且非常不同的學分，但是你們認為投資組合中的壓力是什麼？我們是否——也許這是顯而易見的，但我們是否只是期望它繼續上升？

Jon, I think realistically, it will. Some of these -- we're watching a lot of credits, and we've got good eyes on everything. And I -- if rates stay up and higher longer, I think we'll see some more nonperformers and in real estate. But do I think there's much loss there? No, I don't. And we might get lucky and avoid some of them. But there are just some properties that are under stress, and I'm a Frost banker. And so I'm going to take a conservative view. And I think nonperformance will increase, but they're so low right now. It's really hard for them to -- for us to expect them to be at the same level going through a cycle like this indefinitely.

喬恩，我認為現實地說，會的。其中一些——我們觀看了很多製作人員名單，並且我們對一切都有很好的眼光。我認為，如果利率持續上漲並保持較高水平的時間更長，我認為我們會看到更多表現不佳的房地產行業。但我覺得損失很大嗎？不，我不。我們可能會幸運地避免其中的一些。但只有一些房產面臨壓力，而我是弗羅斯特銀行家。所以我將採取保守的觀點。我認為不良表現將會增加，但現在很低。對我們來說，他們真的很難期望他們能夠處於同一水平，無限期地經歷這樣的循環。

So I mean, I'm not trying to paint a bleak picture. I'm just trying to be realistic. And we're going to have to be patient as we work with these customers, the main thing you want to see is people doing the right thing that you've banked and working with you and -- on restructuring deals, doing their part to contribute to make it right. And we've got some deals that we're seeing that they're going to need that. We're having conversations with that, and I'm expecting everyone to perform the way they should, and I think it will be fine.

所以我的意思是，我並不是想描繪一幅慘淡的畫面。我只是想現實一點。當我們與這些客戶合作時，我們必須保持耐心，你希望看到的主要事情是人們做正確的事情，你已經存入銀行並與你合作——在重組交易上，盡自己的一份力量為糾正錯誤做出貢獻。我們已經達成了一些交易，我們發現他們會需要這些。我們正在對此進行對話，我希望每個人都能按照他們應該的方式行事，我認為這會很好。

But realistically, not everyone is going to do what you want them to do. And I don't have any specific expectations there, except I've just been in this business a long time. And some of that's going to happen. That, to me, is not the big worry right now. It's -- to me -- look, and I don't want you to think we're not -- we don't have all eyes on credit. We do, I mean. But to me, that's going to work its way out. I've got faith in the underwriting and the relationships that we've been doing for the last few years. Again, it doesn't matter what you do today really. What matters is what you've done over the last few years, and I've got a lot of faith in that.

但實際上，並不是每個人都會做你希望他們做的事。我對此沒有任何具體的期望，除非我剛剛從事這個行業很長一段時間。其中一些將會發生。對我來說，這並不是現在最大的擔憂。對我來說，你看，我不想讓你認為我們不是——我們並不全神貫注於信貸。我是說，我們確實這麼做了。但對我來說，這將會解決問題。我對過去幾年我們一直在做的承保和關係充滿信心。再說一次，你今天做什麼並不重要。重要的是你在過去幾年所做的事情，我對此很有信心。

The thing that I want to see us continuing to do is win competitively. We are winning competitively. And I'm really excited about the opportunity in Austin. I think it's got every chance to be as good as we've seen in other places, and we'll see, but that's what we're focused on. It's growing the business and winning competitively. Will we see some nonperformers increase? I bet we will.

我希望看到我們繼續做的事情就是在競爭中獲勝。我們正在競爭中獲勝。我對奧斯汀的機會感到非常興奮。我認為它完全有機會像我們在其他地方看到的那樣好，我們會看到的，但這就是我們關注的重點。它正在發展業務並贏得競爭。我們會看到一些表現不佳的人增加嗎？我打賭我們會的。

Okay. Yes. It kind of reminds me of [Energy] 7 or 8 years ago in some ways. Jerry, for you, the Houston 1.0, you talked about a $0.05 EPS impact. So call it, 2% of EPS, maybe crude math, but 4% of footings, how long does it take Houston 1.0 to reach like corporate-wide profitability and returns?

好的。是的。某種程度上讓我想起了七、八年前的《能量》。傑瑞，對你來說，休士頓 1.0，你談到了 0.05 美元的 EPS 影響。這麼說吧，每股收益的 2%，也許是粗略的數學，但基礎的 4%，休士頓 1.0 需要多長時間才能達到全公司的盈利能力和回報？

Let me see if I can grab my -- put my hands on some of that information. What was interesting is that Phil and I really haven't talked about this, but for the quarter, it was interesting that how well Houston paid that now at this point, they're starting to pay for more of the expansion. It's kind of what we had been talking about when all this started was -- the plan was to make them -- to make 1.0 profitable so that they could start paying for some of those. And I'd say -- so what we said was it takes about 27 months to breakeven is kind of what we kind of project.

讓我看看我能否掌握其中的一些資訊。有趣的是，菲爾和我真的沒有談論過這個，但對於本季來說，有趣的是，休士頓現在支付的費用有多好，他們開始為更多的擴張支付費用。當這一切開始時，我們一直在談論的是——計劃是讓他們——讓 1.0 盈利，這樣他們就可以開始為其中的一些付費。我想說的是，我們所說的是需要大約 27 個月才能達到收支平衡，而這正是我們的專案。

And so at this point, I think that Houston 2.0 is probably a couple of years away just from the standpoint that, remember, early on, it's all expense loaded. And so at this point, it's still going to be a couple of years before Houston 2.0 is contributing. It's not the size of 1.0, but we've got some of that same expense front loading.

因此，在這一點上，我認為休士頓 2.0 可能還需要幾年的時間，記住，早期，這都是費用負擔。因此，在這一點上，休士頓 2.0 還需要幾年時間才能做出貢獻。它不是 1.0 的大小，但我們有一些相同的費用前端加載。

Okay. And just on 1.0 for it to reach, call it, similar returns and profitability profile of the rest of the company. Is that a year away?

好的。只要達到 1.0，它就能達到與公司其他部門類似的回報和獲利能力。那還有一年嗎？

Yes, I think that's probably right. We kind of have to take a little bit closer look at it, sharpen our pencil, but I don't think it's too far from that. Again, I don't have in front of me what their projections are for the rest of the year. But like we said, they had a 30% linked quarter growth on deposits with that sort of a growth horizon that we wouldn't be too far. But I have to be honest, I don't have that sort of projection in front of me and happy to be able to talk about it at some future point when we get together.

是的，我想這可能是對的。我們必須更仔細地觀察它，削尖我們的鉛筆，但我認為離這還不算太遠。同樣，我面前沒有他們對今年剩餘時間的預測。但正如我們所說，他們的存款季度成長率為 30%，我們不會太遠。但我必須說實話，我面前沒有那種預測，並且很高興能夠在將來我們聚在一起時談論它。

Jon, it's interesting question. The -- just kind of overall, as we look at these branches and we pro forma it out, we tend to use -- when we began all this a 5-year horizon for the branch to kind of reach maturity and that was -- I guess that would be similar profitability to what we were overall. But honestly, it's also true. We don't talk a lot about it, but it's also true that in year 6 through 10, I think we've seen really more growth than we see in that first 5 years as those things mature, we see some really significant growth.

喬恩，這是一個有趣的問題。總的來說，當我們審視這些分支並進行形式化時，我們傾向於使用——當我們開始這一切時，分支的成熟期為 5 年，那就是——我想這與我們的整體盈利能力相似。但說實話，這也是事實。我們對此談得不多，但事實上，在第6 年到第10 年，我認為我們看到的成長確實比前5 年要多，隨著這些事情的成熟，我們看到了一些非常顯著的增長。

So I think ultimately, these locations end up with better profitability than the total profitability of the company just because they're more efficient and more focused on a book of business in a defined market and a defined structure.

因此，我認為最終，這些地點的獲利能力比公司的總獲利能力更好，因為它們效率更高，更專注於特定市場和特定結構中的業務。

So I think that we're not at 5 years for all of them, and it will take a little bit, even for 1.0, to get there. But -- and then certainly, 2.0 is going to take some time before all of those are 5-year mature. But don't count out continued growth in those markets from the expansion in year 6 through 10. Historically, as we looked at those 40 branches that we had done, before we started the expansion, some of the growth in year 6 through 10 was really significant.

所以我認為我們不會用 5 年的時間來實現所有這些目標，即使是 1.0，也需要一點時間才能實現這一目標。但是——當然，2.0 還需要一些時間才能讓所有這些都成熟 5 年。但不要指望從第6 年到第10 年的擴張中這些市場會持續成長。從歷史上看，當我們查看我們在開始擴張之前已經建立的40 個分支機構時，第6 年到第10 年的部分成長是真的很重要。

Yes, that's really where the power is.

是的，這確實是力量所在。

Yes. Okay. Yes. So we're just kind of just getting there.

是的。好的。是的。所以我們才剛剛到達那裡。

I think so.

我想是這樣。

At this time, I'd like to turn the floor back over to Mr. Green for closing comments.

現在，我想把發言權交還給格林先生以供結束發言。

All right. As always, we appreciate all of your interest, and we thank you for your questions and we'll now be adjourned.

好的。一如既往，我們感謝你們的關注，也感謝你們提出的問題，我們現在休會。

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines at this time, and enjoy the rest of your day.

女士們、先生們，感謝您的參與。今天的活動到此結束。此時您可以斷開線路，享受剩下的一天。