ConnectOne Bancorp Inc (CNOB) 2023 Q2 法說會逐字稿

Good morning, and welcome to the ConnectOne Bancorp, Inc. Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, today's event is being recorded.

早安，歡迎參加 ConnectOne Bancorp, Inc. 2023 年第二季財報電話會議。 （操作員說明）請注意，今天的活動正在錄製中。

I'd now like to turn the conference over to Siya Vansia. Please go ahead, ma'am.

我現在想把會議交給 Siya Vansia。請繼續，女士。

Good morning, and welcome to today's conference call to review ConnectOne's results for the second quarter 2023 and to update you on recent developments.

早安，歡迎參加今天的電話會議，回顧 ConnectOne 2023 年第二季的業績並向您介紹最新進展。

On today's call will be Frank Sorrentino, Chairman and Chief Executive Officer; Bill Burns, Senior Executive Vice President and Chief Financial Officer. Also with us is Elizabeth Magennis, President of ConnectOne Bank and Steve Primiano, EVP and Treasurer.

董事長兼執行長 Frank Sorrentino 將出席今天的電話會議；比爾‧伯恩斯，資深執行副總裁兼財務長。與我們一起的還有 ConnectOne 銀行總裁 Elizabeth Magennis 和執行副總裁兼財務主管 Steve Primiano。

I'd also like to caution you that we may make forward-looking statements during today's conference call that are subject to risks and uncertainties. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings.

我還想提醒您，我們可能在今天的電話會議上發表前瞻性聲明，這些聲明有風險和不確定性。我們向 SEC 提交的文件中詳細介紹了可能導致實際結果與預期有重大差異的因素。

The forward-looking statements included in this conference call are only made as of the date of this call. and the company is not obligated to publicly update or revise them. In addition, certain terms used in this call are non-GAAP financial measures, reconciliations of which are provided in the company's earnings release and accompanying tables or schedules, which have been filed today on Form 8-K with the SEC and may also be accessed through the company's website.

本次電話會議中所包含的前瞻性陳述僅在本次電話會議之日作出。公司沒有義務公開更新或修改它們。此外，本次電話會議中使用的某些術語是非GAAP 財務指標，公司的收益報告和隨附的表格或時間表中提供了這些指標的調節表，這些數據已於今天以8-K 表格的形式向SEC 提交，也可以造訪透過公司網站。

I will now turn the call over to Frank Sorrentino. Frank, please go ahead.

我現在將把電話轉給弗蘭克·索倫蒂諾。弗蘭克，請繼續。

Thank you, Siya, and good morning, everyone. We appreciate everyone joining us this morning for this call. As you saw in this morning's earnings release, ConnectOne's performance, while negatively impacted by credit policy, continues to demonstrate strong and stable qualities in this challenging operating environment.

謝謝你，Siya，大家早安。我們感謝今天早上參加我們這次電話會議的所有人。正如您在今天早上的財報中看到的那樣，ConnectOne 的業績雖然受到信貸政策的負面影響，但在充滿挑戰的營運環境中繼續表現出強勁而穩定的品質。

Beginning of the year and throughout the turmoil in March, we have maintained and even increased client deposits as we have diligently supported and deepened our client relationships along with adding new ones. Further, we continue to fortify our sources of liquidity while maximizing our insured deposits, leading to a top-tier uninsured deposit coverage ratio of about 250%.

今年年初以及整個三月的動盪時期，我們一直在努力支持和深化我們的客戶關係並增加新客戶，從而維持甚至增加了客戶存款。此外，我們持續強化流動性來源，同時最大限度地提高受保存款，使未受保存款覆蓋率達到約 250% 的頂級水準。

I'd like to summarize some of the key operating highlights from our quarter, and then Bill, of course, will give us some more detail later. As expected, our loan portfolio remained mostly flat for the quarter, although loan mix improved reflecting a healthy 17% annualized growth rate in C&I. The investments we've been making in this area are beginning to move the needle on both sides of our balance sheet.

我想總結一下我們這個季度的一些關鍵營運亮點，當然，比爾稍後會給我們更多細節。正如預期的那樣，本季我們的貸款組合基本上持平，儘管貸款組合有所改善，反映了工商業 17% 的健康年化成長率。我們在這一領域進行的投資開始在我們的資產負債表兩側產生積極影響。

Our capital levels remain strong, which -- reflecting our prudent philosophies and hedging strategies have seen a minimal negative impact from [OCI]. Tangible common equity increased to 9.19% as of June 30, which remains well above peer averages, and our tangible book value per share increased for the 13th consecutive quarter to $22.34, that's up 40% over that period.

我們的資本水準仍然強勁，這反映了我們審慎的理念和對沖策略，[OCI] 的負面影響很小。截至 6 月 30 日，有形普通股增至 9.19%，仍遠高於同業平均水平，每股有形帳面價值連續第 13 個季度增長至 22.34 美元，同期增長 40%。

Our net interest margin did compress sequentially by about 19 basis points, largely due to the shift from noninterest-bearing demand and the interest-bearing accounts However, both our net interest margin and EDA trends seem to stabilize at their current levels during the quarter, at least for the time being. Bill, of course, we'll discuss a little bit more about this in detail later.

我們的淨利差確實環比壓縮了約 19 個基點，主要是由於無息需求和計息帳戶的轉變。但是，我們的淨息差和 EDA 趨勢似乎在​​本季度穩定在當前水平，至少目前如此。比爾，當然，我們稍後會詳細討論這一點。

Our credit quality remains excellent, with delinquencies as a percentage of total loans remain near 0 at just 0.04% of total loans. This reflects high credit standards, a well-diversified portfolio and more importantly, our relationship-based client philosophy.

我們的信貸品質依然出色，拖欠率佔貸款總額的百分比仍然接近 0，僅佔貸款總額的 0.04%。這反映了高信用標準、多元化的投資組合，更重要的是，反映了我們基於關係的客戶理念。

In regards to our commercial real estate portfolio, as we mentioned in previous calls, we had very minimal exposure to office with New York City office representing less than 1% of total loans. Our aggregate office exposure is largely in Northern New Jersey, which includes high tenancy specialty services and multiuse buildings and totals about 5% of our total portfolio. That portfolio is performing well and is all pass-rated.

至於我們的商業房地產投資組合，正如我們在先前的電話會議中提到的，我們對辦公室的曝險非常小，紐約市的辦公室只佔貸款總額的不到 1%。我們的辦公大樓總投資主要位於新澤西州北部，其中包括高租賃專業服務和多用途建築，總計約占我們總投資組合的 5%。該投資組合表現良好，並且全部獲得通過評級。

Taking a look now at our multifamily portfolio. Historically, our loans were underwritten with prudent standards, including high internally determined DSCRs at low LTVs. In addition, loan underwriting includes stress testing for interest and cap rate increases and stresses on potential net operating income.

現在來看看我們的多戶型投資組合。從歷史上看，我們的貸款是按照審慎標準承保的，包括內部確定的高 DSCR 和低 LTV。此外，貸款承銷還包括利率和上限利率上升的壓力測試以及潛在淨營業收入的壓力。

In terms of rollover risk, we have extensively reviewed our portfolio to determine the current level of risk. First of all, only about $60 million of the multifamily loans will experience significant repricing during the remainder of '23 and $190 million in the following 12 months. Of those, a large majority are financially strong long-time clients of the bank and pose very limited risk.

在展期風險方面，我們廣泛審查了我們的投資組合，以確定當前的風險等級。首先，只有約 6,000 萬美元的多戶家庭貸款將在 23 年剩餘時間內經歷重大重新定價，而 1.9 億美元將在接下來的 12 個月內經歷大幅重新定價。其中，絕大多數是財務實力雄厚的銀行長期客戶，風險非常有限。

In some cases, we're proactively seeking credit enhancements such as additional collateral and/or PGs and have largely been successful in this regard. We also have the ability and will utilize this in very limited cases, either rate or amortization concessions in order to maintain sound loan performance.

在某些情況下，我們會主動尋求信用增強，例如額外的抵押品和/或保證金，並且在這方面基本上取得了成功。我們也有能力並將在非常有限的情況下利用這一點，無論是利率還是攤銷優惠，以保持良好的貸款表現。

Overall, while our loan pipeline remains robust, we continue to anticipate a relatively flat outlook regarding overall loan growth. Looking ahead, we're well-positioned with growth opportunities in key markets such as Long Island in South Florida and in deposit-rich verticals in C&I, along with health care and others. At the same time, we expect to see a decrease in multifamily lending where purchase demand is obviously down and rate competition is still challenging.

總體而言，雖然我們的貸款管道仍然強勁，但我們仍然預期整體貸款成長的前景相對平坦。展望未來，我們在南佛羅裡達州長島等關鍵市場以及存款豐富的工商業垂直市場以及醫療保健和其他市場中擁有良好的成長機會。同時，我們預期多戶家庭貸款將會減少，因為購買需求大幅下降，利率競爭仍充滿挑戰。

Moving on to our operating strategy. We focused on integrating key technology and infrastructure investments. This optimization will continue to position ConnectOne for the future while enhancing our franchise value. We're executing on several innovation initiatives focused on enhancing the client experience while digitizing workflows and expanding opportunities to support our deposit franchise and drive organic growth. For example, we recently launched our partnership with MANTL and successfully integrated the first phase of this omnichannel deposit origination platform.

繼續我們的營運策略。我們專注於整合關鍵技術和基礎設施投資。這種優化將繼續為 ConnectOne 的未來定位，同時提高我們的特許經營價值。我們正在執行多項創新舉措，重點是增強客戶體驗，同時實現工作流程數位化和擴大支持我們的存款特許經營權並推動有機成長的機會。例如，我們最近與 MANTL 建立了合作夥伴關係，並成功整合了這個全通路存款發起平台的第一階段。

We're also creating opportunities across new verticals. We continue to build our franchise referral and lending platform in conjunction with BoeFly, and during the quarter, we continued to enhance its infrastructure and new users and increase our client's overall workflow efficiency and drive revenue.

我們也在新的垂直領域創造機會。我們繼續與 BoeFly 合作建立我們的特許經營推薦和貸款平台，在本季度，我們繼續增強其基礎設施和新用戶，並提高客戶的整體工作流程效率並增加收入。

Additionally, I'm pleased to share that our SBA lending platform continues to gain traction and is accelerating our noninterest income growth. We recorded $500,000 in gains during the second quarter and aim to improve on that in the quarters ahead.

此外，我很高興地告訴大家，我們的 SBA 貸款平台繼續受到關注，並正在加速我們的非利息收入成長。我們在第二季度實現了 50 萬美元的收益，並計劃在未來幾季實現這一目標。

While we invest in ways our clients can access our products and services and continue to make enhancements in our systems and communication tools, we're also seizing on opportunities driven by the market disruption to attract high-performing, revenue-producing talent to support future growth. Over the past several months, we've onboarded about a dozen client-facing team members in both new and existing markets.

在我們投資於客戶獲取我們的產品和服務的方式，並繼續改進我們的系統和通訊工具的同時，我們也抓住市場顛覆帶來的機會，吸引高績效、創造收入的人才，以支持未來成長。在過去的幾個月裡，我們在新市場和現有市場中招募了大約十幾位面向客戶的團隊成員。

ConnectOne continues to leverage opportunities to grow smartly. We continue to prove we manage expenses. This includes our ongoing focus on optimizing operations, staff count and branch footprint, while also leveraging technology to increase human capital efficiency. Saying that, while we understand this may be somewhat different message than you're hearing from other banks, many of them are cost-cutting or implementing expense cuts, we believe the current environment presents particular opportunities to invest and supporting ConnectOne's distinct growth strategies and offer the potential for attractive returns. This philosophy is consistent with our track record of superior growth and profitability over the longer term.

ConnectOne 持續利用機會實現明智成長。我們繼續證明我們能夠管理費用。這包括我們持續專注於優化營運、員工數量和分公司足跡，同時利用科技提高人力資本效率。話雖如此，雖然我們知道這可能與您從其他銀行聽到的信息有所不同，其中許多銀行都在削減成本或實施開支削減，但我們相信當前的環境為投資和支持ConnectOne 獨特的增長戰略提供了特殊的機會，提供有吸引力的回報潛力。這一理念與我們長期卓越的成長和獲利能力的記錄是一致的。

Regarding our outlook for the remainder of '23, although the industry is facing headwinds, we firmly believe that ConnectOne's conservative client-centric model, diversified balance sheet, solid liquidity, and track record of prudent underwriting and profitability position us for the challenges ahead and the flexibility to continue to invest in our valuable franchise.

關於我們對23 年剩餘時間的展望，儘管行業面臨逆風，但我們堅信ConnectOne 保守的以客戶為中心的模式、多元化的資產負債表、穩健的流動性以及審慎承保和盈利能力的記錄使我們能夠應對未來的挑戰和繼續投資於我們寶貴的特許經營權的靈活性。

And with that, I'll turn it over to Bill. Bill?

有了這個，我會把它交給比爾。帳單？

Okay. Thanks, Frank, and good morning. Thank you all for joining us today. We'll get to your questions shortly. But first, I'd like to start off with some comments regarding deposits and liquidity.

好的。謝謝，弗蘭克，早安。感謝大家今天加入我們。我們很快就會回答您的問題。但首先，我想先談談有關存款和流動性的一些評論。

First off, we are in very good shape regarding client deposit flows. And here, defining client deposits as all deposits other than broker. And in this economic environment where, first, the money supply and aggregate deposits are contracting, and second, where regional community bank deposits have been migrating to the largest banks, we have maintained and even have grown our client deposit base. And that's true whether you analyze the trends on a point-to-point on an average balance basis.

首先，我們在客戶存款流量方面處於非常良好的狀態。在這裡，將客戶存款定義為除經紀人之外的所有存款。在這種經濟環境中，首先，貨幣供應量和總存款正在收縮，其次，區域社區銀行的存款已轉移到最大的銀行，我們維持甚至擴大了我們的客戶存款基礎。無論您是在平均餘額的基礎上點對點地分析趨勢，這都是事實。

Now we did increase broker by more than $300 million during the latter part of the first quarter, and that was to increase on balance sheet cash liquidity but we have largely wound that down during the second quarter. So that contributed to a decline in aggregate deposits sequentially but not client deposits, which are up. And in terms of overall liquidity, we are now covering our uninsured and uncollateralized deposits by more than 2.4x and that is a very, very strong metric.

現在，我們確實在第一季後半段增加了經紀商超過 3 億美元，這是為了增加資產負債表上的現金流動性，但我們在第二季大幅削減了這一規模。因此，這導致總存款連續下降，但並未導致客戶存款上升。就整體流動性而言，我們現在的無保險和無抵押存款覆蓋率超過 2.4 倍，這是一個非常非常強大的指標。

So the next area I'd like to cover is the net interest margin. We did experience another 19 basis points of sequential compression, but there's good news here and as the low point of the margin actually occurred in April, while May and June saw some margin expansion.

所以我想討論的下一個領域是淨利差。我們確實經歷了另外 19 個基點的連續壓縮，但這裡有個好消息，因為利潤率的低點實際上出現在 4 月份，而 5 月和 6 月則出現了一些利潤率擴張。

Several moving parts here. First, noninterest-bearing demand, which declined heading into the month of April, April remained relatively constant for the remainder of the quarter. And second, since we had been proactive and aggressive with rate increases early on during the cycle, we were generally able to hold off rate increases for much of the current quarter.

這裡有幾個活動部件。首先，無息需求在 4 月開始下降，但在本季剩餘時間內保持相對穩定。其次，由於我們在周期的早期就積極主動地加息，因此我們通常能夠在本季度的大部分時間裡推遲加息。

Looking at deposit rate trends, we appear to be approaching our terminal beta, which is about 50 to 55, depending on how you measure it. As far as the NIM to the remainder of '23, there are factors working in our favor and some against. On the positive side, our projected new loan funding rates are approximately 8.2% and are expected to replace loans going off the books at rates below 7%. There's about $300 million in turnover per quarter that we project, and that $300 million in turnover excludes any resets.

從存款利率趨勢來看，我們似乎正在接近最終貝塔值，大約是 50 到 55，具體取決於您如何衡量。就 23 年剩餘時間的 NIM 而言，有一些因素對我們有利，也有一些因素對我們不利。從積極的一面來看，我們預計新貸款融資利率約為 8.2%，預計將取代低於 7% 利率的帳外貸款。我們預計每季的營業額約為 3 億美元，這 3 億美元的營業額不包括任何重置。

Next, yesterday's Fed rate increase will likely help the margin, albeit slightly. And finally, the noninterest-bearing demand appears to be flattening out as I've spoken to this before, the value of DDA is even greater in a higher rate environment. Working against the margin is the continuing pricing of CDs, in this regard, we have about $400 million per quarter over the course of the next year and an estimated 100 basis point increase in cost.

接下來，昨天的聯準會升息可能會提振利潤率，儘管幅度不大。最後，無利息需求似乎正在趨於平緩，正如我之前談到的那樣，DDA 的價值在較高的利率環境中甚至更大。與利潤相抵觸的是 CD 的持續定價，在這方面，我們在明年每季大約有 4 億美元，預計成本增加 100 個基點。

I just mentioned that we have been able to hold firm on deposit pricing recently. We, of course, are keenly aware that competition could intensify which will accelerate our deposit costs once again.

我剛才提到，最近我們能夠堅守存款定價。當然，我們敏銳地意識到競爭可能會加劇，這將再次提高我們的存款成本。

So when you add it all up I'm going to give some conservative guidance here and say that although we expect some further compression, it is not likely to be anywhere near what we've experienced over the past year. I would hope compression, if any, would be no higher than the single digits.

因此，當你把所有這些加起來時，我將在這裡給出一些保守的指導，並表示儘管我們預計會出現進一步的壓縮，但它不太可能接近我們過去一年所經歷的情況。我希望壓縮率（如果有的話）不會高於個位數。

And longer term, we are in a liability-sensitive position and would expect material margin expansion when that inverted yield curve returns to its traditional shape. We've run some preliminary modeling and see a rough cut. We'd expect for every 100 basis point drop in short-term rates, we see a 20 basis point improvement in the net interest margin, which over the course of a complete cycle would bring us back to our 340, maybe a little higher, long-term margin. And along with that, all the other metrics that reflect the high-performing banking organization.

從長遠來看，我們處於對負債敏感的位置，並且預計當反向殖利率曲線恢復到傳統形狀時，利潤率會大幅擴張。我們已經進行了一些初步建模並看到了粗略的結果。我們預計短期利率每下降 100 個基點，我們就會看到淨利差提高 20 個基點，在一個完整的周期中，這將使我們回到 340 個基點，也許更高一點，長期利潤。除此之外，還有反映高績效銀行組織的所有其他指標。

On expenses, we will, in some respects, as Frank was talking about, follow our longer-term strategic view. We will capitalize on opportunities for talent, and we'll continue to invest in technological improvements. Now this is not to say we want to also focus, as we always do, on efficiency, in terms of continued rationalization always of vendors and consultants and reallocation of resources depending on the changing landscape. For example, we have planned to close another New Jersey branch late in the year.

在費用方面，正如弗蘭克所說，我們在某些​​方面會遵循我們的長期戰略觀點。我們將利用人才機會，並持續投資於技術改進。現在，這並不是說我們想要像往常一樣專注於效率，即供應商和顧問的持續合理化以及根據不斷變化的環境重新分配資源。例如，我們計劃在今年年底關閉另一家新澤西州分公司。

And we recognize some of our peers have reported cost-cutting programs. However, as a top-tier efficient bank with noninterest expenses as a percent of assets consistently less than 1.5%, we are in a constant optimization mode. So given all I just stated, I'm going to forecast expense growth of approximately 5% on an annualized basis.

我們認識到我們的一些同行已經報告了成本削減計劃。然而，作為一家非利息支出佔資產比例始終低於1.5%的頂級效率銀行，我們處於不斷優化的模式。因此，考慮到我剛才所說的一切，我預計年化費用將成長約為 5%。

On the noninterest income front, we remain optimistic about our growth prospects, especially given the momentum from SBA. We reported $500,000 of gains this quarter and expect that number to increase in the coming quarters, and BoeFly is expected to contribute to noninterest income growth as well.

在非利息收入方面，我們對成長前景保持樂觀，特別是考慮到 SBA 的勢頭。我們報告本季收益為 50 萬美元，並預計該數字將在未來幾季增加，並且 BoeFly 預計也將為非利息收入成長做出貢獻。

Now moving on to the ACL and credit. Frank mentioned this as well. Credit quality remains sound with delinquencies at just 4 basis points of total loans at quarter end and net charge-offs for the quarter were just 5 basis points annualized. The nonperforming asset ratio was basically flat, increasing slightly to 0.53 from 0.48 a quarter ago, but it is down from 0.69 a year ago. The provision for the quarter was $3 million, and as you know, it's difficult to project seasonal modeling. But right now, my outlook is similar provisioning for the remainder of 2023.

現在轉向 ACL 和信用。弗蘭克也提到了這一點。信貸品質依然良好，季末貸款總額的拖欠率僅 4 個基點，本季年化淨沖銷僅 5 個基點。不良資產率基本持平，從第一季前的0.48小幅上升至0.53，但較一年前的0.69下降。該季度的撥款為 300 萬美元，正如您所知，很難預測季節性模型。但目前，我對 2023 年剩餘時間的配置展望也類似。

A little bit about capital. Capital remains at very strong levels, and it continues to grow. Stock repurchases were modest at 270,000 shares during the current quarter and were completed at about $15 per share. It's a good 20% below the current stock price. And with our stock still trading today below tangible book value and what we believe is a significant discount for long-term value, we plan to continue that program at a similar pace for the duration of 2023.

關於資本的一些知識。資本仍然保持在非常強勁的水平，並且持續增長。本季股票回購規模不大，為 27 萬股，回購價格約每股 15 美元。這比目前股價低了 20%。由於我們的股票目前交易價格仍低於有形帳面價值，而且我們認為長期價值存在大幅折扣，因此我們計劃在 2023 年期間以類似的速度繼續該計劃。

Our dividend, which was increased last quarter, still represents just a 33% payout even based on this quarter's EPS. So we have a good cushion for stock repurchases.

即使根據本季的每股盈餘計算，我們上季增加的股利仍僅為 33%。所以我們對股票回購有很好的緩衝。

And before we get to questions, I'll turn it over to Frank again.

在我們提問之前，我將再次將其交給弗蘭克。

Thanks, Bill. In summary, despite the ever-changing environment and the headwinds being faced by the industry, we remain committed to our long-term strategic priorities. As we have in many prior cycles, ConnectOne's deep, experienced team continues to remain focused on serving our clients, building a best-in-class team and creating long-term value to our shareholders.

謝謝，比爾。總而言之，儘管產業面臨不斷變化的環境和逆風，我們仍然致力於我們的長期策略重點。正如我們在之前的許多周期中所做的那樣，ConnectOne 的深厚、經驗豐富的團隊繼續專注於服務我們的客戶、建立一流的團隊並為我們的股東創造長期價值。

We're confident that at our commitment to improving and building upon our distinctive operating platform and maintaining our people-focused mission will allow us to not only remain resilient but to take advantage of the unique opportunities ahead. We look forward to sharing our continued progress in the quarters ahead. And with that, we're happy to take your questions. Operator?

我們相信，我們致力於改進和建立我們獨特的營運平台，並保持以人為本的使命，這將使我們不僅能夠保持彈性，而且能夠利用未來的獨特機會。我們期待分享我們在未來幾季的持續進展。因此，我們很樂意回答您的問題。操作員？

(Operator Instructions) And the first question comes from Michael Perito.

（操作員說明）第一個問題來自 Michael Perito。

Bill, just a quick clarification. The 5% expense growth, what's the period of time on that? Is that an annual '23 number? Or is that for the back half of the year, next year? I'm sorry if I missed that, but I didn't hear the...

比爾，請快速澄清一下。 5% 的費用成長，持續了多久？這是每年的 '23 號碼嗎？還是說是下半年、明年？如果我錯過了，我很抱歉，但我沒有聽到...

Well, I would say it's for the next couple of quarters, and we'll see how things are going on the revenue side before we give further guidance for 2024.

嗯，我想說的是接下來的幾個季度，在我們給出 2024 年的進一步指導之前，我們將看看收入方面的情況如何。

Okay. So 5% growth off of...

好的。所以 5% 的成長...

Annualized. So divide that by 4 for a sequential number.

年化。因此，將其除以 4 即可得到連續的數字。

Got it. Perfect. All right. And just curious about behind that. I imagine you guys mentioned it, I think Frank mentioned in his prepared remarks, you mentioned in the release, it sounds like there's still opportunities around all the dislocation in the local market here.

知道了。完美的。好的。只是對這背後感到好奇。我想你們提到過這一點，我想弗蘭克在他準備好的演講中提到過，您在新聞稿中提到過，聽起來本地市場的所有混亂仍然存在機會。

Frank, can you maybe just go a layer deeper on that? I mean, have you started -- I feel like there's always kind of 2 iterations of that type of disruption. There's the initial wave, then people -- then there's the second wave. I mean where do you think we are in that process? And what are the types of talents that you guys are looking at? I mean, I imagine there's a lot of stuff you're not looking at as well or not interested in. Just curious if you can spend a minute on that.

法蘭克，你能再深入一點嗎？我的意思是，你開始了嗎？我覺得這種類型的破壞總是會出現兩次迭代。首先是第一波浪潮，然後是人們──然後是第二波浪潮。我的意思是，你認為我們在這個過程中處於什麼位置？你們正在尋找哪些類型的人才？我的意思是，我想有很多東西你沒有看過或不感興趣。只是好奇你是否能花一點時間在上面。

Yes. I probably wouldn't spend any time on what we're not interested in, but I would tell you that I think we're in between that first phase and second phase. Certainly, a lot of people are still shell-shocked by some of the changes that some turmoil that erupted in mid- to late March. And there are folks that are still trying to figure out where they want to go, what they want to do, or how they want to do it. I think there is the second wave forming, which are people that have been either displaced or have defaulted to other organizations and finding out that it's not so great there.

是的。我可能不會花任何時間在我們不感興趣的事情上，但我會告訴你，我認為我們正處於第一階段和第二階段之間。當然，很多人仍然對3月中下旬爆發的一些風波所帶來的一些變化感到震驚。有些人仍在試圖弄清楚他們想去哪裡，他們想做什麼，或者他們想如何做。我認為第二波浪潮正在形成，這些人要么流離失所，要么默認加入其他組織，並發現那裡的情況不太好。

And so they're seeking out some place that resembles home to them. We're taking advantage of both of those. On top of which there's all the opportunities in the marketplace relative to the M&A that's occurred in our market, which is really driving a lot of people out of some of these larger-sized regional banks and into places that more resemble a place where they can get business done, where they can actually shake hands with the client and have meaningful dialogues and be able to be seen as a decision-maker.

所以他們正在尋找一些像他們家一樣的地方。我們正在利用這兩個優勢。最重要的是，市場上存在與我們市場中發生的併​​購相關的所有機會，這確實促使許多人離開一些大型區域銀行，進入更適合他們的地方。完成業務，他們可以真正與客戶握手並進行有意義的對話，並能被視為決策者。

So as far as where we're seeing opportunities here, what we're taking advantage of, clearly, we're beginning to see the transformation of our C&I operation here, which has been a long time in building, but we keep adding really great talent there. It's in all parts of that bucket, but it's also allowing us to expand our reach into other adjacent markets that are close to where we are today.

因此，就我們在這裡看到的機會、我們正在利用的優勢而言，顯然，我們開始看到我們在這裡的工商業運營的轉型，這已經經歷了很長時間的建設，但我們確實在不斷增加那裡人才濟濟。它存在於該桶的所有部分，但它也使我們能夠將業務範圍擴大到與我們今天所處位置接近的其他相鄰市場。

So we're really excited about some of the opportunities that we've been able to pick off that I don't know that we -- at any other time, we'd have been able to do so. And that's why we're speaking up about the expenses where everybody is talking about layoffs and cost containment and this and that. We actually see it going the other way. We see that this is the time to double down, get the best talent that we can onboard and we think that's going to be -- we think that's going to be net-positive over any longer-term time horizon.

因此，我們對我們能夠抓住的一些機會感到非常興奮，我不知道我們在其他任何時候都能夠做到這一點。這就是為什麼我們要談論開支，而每個人都在談論裁員和成本控制等等。我們實際上看到了相反的情況。我們認為，現在是加倍努力、招募最優秀人才的時候了，我們認為，從長遠來看，這將是淨積極的。

That's helpful. Maybe a follow-up on that for Liz, just on the SBA side. Can you remind us the size of that team today and maybe just some near-term expectations around origination growth? I mean that was a nice line item this quarter for you guys. Just curious where that could trend over the next few quarters here.

這很有幫助。也許是 Liz 的後續行動，只是在 SBA 方面。您能否提醒我們目前該團隊的規模以及有關創始成長的一些近期預期？我的意思是，這對你們來說是本季的一個不錯的訂單項目。只是好奇未來幾季的趨勢會是如何。

Yes. We have a very good pipeline ahead of us. The team is about 10 people. There's probably 4 business development/originators on that team and the (inaudible) support, but we're remaining optimistic for that line of business. So we're getting in front of some nice deals there. And of course, we're also looking at deals that we're saying no to. But primarily, the loans that we have in that pipeline are pretty strong.

是的。我們前面有一個非常好的管道。團隊約有10人。團隊中可能有 4 名業務開發/發起人以及（聽不清楚）支持，但我們對該業務線保持樂觀。所以我們在那裡得到了一些不錯的優惠。當然，我們也會考慮我們拒絕的交易。但首先，我們在該管道中擁有的貸款相當強勁。

Okay. Is this a decent run rate, Liz, based on the pipeline? I mean, I'm sure it can move around a little bit.

好的。 Liz，基於管道，這是一個不錯的運行率嗎？我的意思是，我確信它可以移動一點。

Yes, Mike, this is Bill. I'd say a minimum of $500,000 and possibly of $750,000. And that's just for this year, and then we'll for [next year], okay?

是的，麥克，這是比爾。我想說至少 50 萬美元，也可能是 75 萬美元。這只是今年的事情，然後我們會[明年]，好嗎？

Yes, perfect. And then just last one for me and then I'll step back. Just Frank, I apologize if I missed this, but I just wondered if you could expand a little bit more just on the dynamics of when kind of a resumption of balance sheet growth makes sense for you guys? And what are the key kind of contributors to that decision? Is it macro? Is it pipeline levels? Is it incremental spread, all of the above? Just curious how you guys think about that, if you can give us some expanded thoughts that would be great.

是的，完美。然後我就退一步。弗蘭克，如果我錯過了這一點，我很抱歉，但我只是想知道你們是否可以進一步擴展一下何時恢復資產負債表增長對你們來說有意義的動態？做出該決定的關鍵因素有哪些？是宏嗎？是管道等級嗎？以上都是增量傳播嗎？只是好奇你們對此有何看法，如果你們能給我們一些擴展的想法，那就太好了。

No, Mike, when I look at it, what I see is that interest rates and Fed policy have definitely dampened demand. And so we see a lot less purchase activity. We see a lot less business combination. We see a lot less of things that generate the types of business that we like to be involved in. So I would say half of why there's a slowdown in our ability to put on new and more assets to generate balance sheet growth is macro.

不，麥克，當我看到它時，我看到的是利率和聯準會政策肯定抑制了需求。因此我們看到購買活動大大減少。我們看到的業務合併要少得多。我們看到的能夠產生我們喜歡參與的業務類型的事情少了很多。所以我想說，我們投入新的和更多資產以產生資產負債表增長的能力放緩的一半原因是宏觀的。

On the other side, certainly, when we start to look at credit metrics and what makes sense for us to do and where we want to put our focus, again, there's just less demand or less initiative on our part to go after certain types of business and certain lines of business.

當然，另一方面，當我們開始考慮信用指標以及我們應該做什麼以及我們想要將重點放在哪裡時，我們會再次發現，我們追求某些類型的信用指標的需求或主動性減少了。業務和某些業務線。

Our pipeline actually is surprisingly pretty strong, but for the most part, it's replacing the existing business that's coming off just the natural cycle. And I do think as the Fed starts to loosen up a little bit as people start to get more comfortable with where the rate environment actually is, and as the economy in general, just -- I hate to use the word rebound because I don't really think it's that bad, but if the economy starts to move into its next phase, I do think we're going to see a natural increase in the demand. And so we should start to see some asset generation along with deposit generation.

我們的管道實際上非常強大，但在大多數情況下，它正在取代自然週期中出現的現有業務。我確實認為，隨著聯準會開始稍微放鬆政策，人們開始對利率環境的實際狀況感到更加滿意，以及總體經濟，我討厭使用「反彈」這個詞，因為我不喜歡使用「反彈」這個詞。我真的認為情況沒有那麼糟糕，但如果經濟開始進入下一階段，我確實認為我們將看到需求的自然成長。因此，我們應該開始看到一些資產的產生和存款的產生。

I think the 2 things are going to come hand in hand because if the Fed takes its foot off the accelerator relative to interest rate increases and the quality of tightening, I think we'll start to see deposits start to flow back in, and I think we'll see demand for business type loans increasing again.

我認為這兩件事將齊頭並進，因為如果聯準會在升息和緊縮品質方面鬆開油門，我認為我們將開始看到存款開始回流，而且我我認為我們會看到對商業類型貸款的需求再次增加。

And of course, we always keep an eye on spreads and profitability. So just like in the past, we're not going to chase deals based on pricing. So how aggressive the competition also factors into how larger growth rate we have.

當然，我們始終關注點差和獲利能力。因此，就像過去一樣，我們不會根據定價來追逐交易。因此，競爭的激烈程度也會影響我們的成長率。

And the next question comes from Daniel Tamayo with Raymond James.

下一個問題來自丹尼爾·塔馬約和雷蒙德·詹姆斯。

Maybe just first on the securities portfolio. I mean, you're kind of -- this is a similar question to the loan growth. You're letting that come down a little bit over the last few quarters. How far are you comfortable letting that come down before you want to start providing for some additional securities again?

也許首先是證券投資組合。我的意思是，這與貸款成長是一個類似的問題。在過去的幾個季度裡，你讓它有所下降。在您想再次開始提供一些額外的證券之前，您願意將其降到什麼程度？

We try to keep it at a certain level of total interest-earning assets. I think in the max, it was probably around 10%, and it's gone down to where it is today at 8%. So -- it's not that big a number, either way for us. But for now, probably flat. I wouldn't want to see it going down too much, okay, just from an on-balance sheet liquidity perspective.

我們盡量將生息資產總額維持在一定水準。我認為最高可能是 10% 左右，現在已經下降到 8%。所以——無論對我們來說，這都不是一個大數字。但就目前而言，可能持平。好吧，僅從資產負債表內流動性的角度來看，我不希望看到它下跌太多。

Okay. And then maybe just to dig in a little bit on the margin comments that you had. I think you said no more than single-digit pressure is what you're expecting from here. I guess, putting aside the potential for change in the yield curve or any kind of cuts, if we stay relatively flat from this level, how do you think at kind of most of the third quarter and then relatively stable after that? Or more...

好的。然後也許只是稍微挖掘一下您的邊際評論。我想你說過，你所期望的壓力不會超過個位數。我想，拋開殖利率曲線變化或任何形式的削減的可能性，如果我們在這個水平上保持相對平穩，你對第三季度的大部分時間以及之後的相對穩定有何看法？或更多...

I can't give you exact projections on net interest margin, but it's hard to say right now that there could be any more compression because there continues to be competition on the deposit side. But the structure of the way assets and liabilities are repricing right now, I'm looking at a margin that's maybe just a little bit lower than where it is today, or flattened out.

我無法給你關於淨利差的準確預測，但現在很難說是否還會有更多的壓縮，因為存款方面的競爭仍然存在。但從目前資產和負債重新定價方式的結構來看，我看到的利潤率可能只比現在低一點點，或者持平。

And the next question comes from Frank Schiraldi with Piper Sandler.

下一個問題來自 Frank Schiraldi 和 Piper Sandler。

Just on the -- Bill, I just want to make sure I heard correctly on the new loan funding, it sounds like you said 8% is where the pipeline is. Was that right?

就法案而言，我只是想確保我對新貸款資金的理解正確，聽起來你說 8% 是管道的位置。是這樣嗎？

Yes, that is right. and then we've been booking on it, too.

對就這樣。然後我們也一直在預訂它。

What is the makeup of that? Is that in terms of C&Is, stabilized CRE construction, what's mostly in that number?

那是什麼妝容？就 C&I、穩定的 CRE 建設而言，這個數字主要是什麼？

Obviously, a big portion of C&I. As Frank had mentioned that we've had some good growth in C&I. Even though the loan portfolio was flat, we had some good growth in C&I. So that's what's driving both -- some of the rate, which is a good rate to put loans on it and also our deposits.

顯然，C&I 的很大一部分。正如弗蘭克所提到的，我們在工商業方面取得了良好的成長。儘管貸款組合持平，但我們的商業和商業業務取得了良好的成長。這就是推動兩者的因素——一些利率，這是放貸和存款的良好利率。

Okay. And I just wondered if you could just maybe talk a little bit more about the area of the market you guys are in, in terms of C&I. Like what the average size of loans, the geography that drove that growth in the quarter or the mix shift in the quarter. Is there generally real estate collateral as well in there? Just kind of curious if you can give a little more color on the C&I growth in the quarter.

好的。我只是想知道你們是否可以多談談您們所在的市場領域，即 C&I 方面。例如貸款的平均規模、推動本季成長的地理位置或本季的組合變化。那裡通常也有房地產抵押品嗎？只是有點好奇您是否可以對本季的 C&I 成長提供更多資訊。

Yes, I think it's a little bit of everything you just said. So it's predominantly within our market footprint, clearly, the New York metro market. It is -- loan size is anywhere generally from $3 million to $15 million in size, mostly businesses. There is some real estate involved, where there's an occupied building involved in particular, whether it's manufacturing or something else that's going on here in the Northern New Jersey market or in the Long Island market.

是的，我認為這就是你剛才所說的一切。因此，顯然，它主要在我們的市場足跡內，即紐約地鐵市場。貸款規模一般在 300 萬美元到 1500 萬美元之間，主要是企業貸款。涉及一些房地產，特別是涉及一棟被佔用的建築物，無論是製造業還是新澤西州北部市場或長島市場正在進行的其他活動。

But mostly, it's just pure C&I. It's business lending for a variety of different reasons. It's very diversified amongst many different segments like a lot. But all pretty common in that they're mostly family-owned businesses, businesses (inaudible), and the other common denominator. These are mostly clients that we probably would have never seen before, but for all the disruption that's going on, where they either don't have the banking more or are really dissatisfied with the changes in the bank that they're at because of either a merger or some of the turmoil from the mid-March.

但大多數情況下，這只是純粹的 C&I。這是出於各種不同原因的商業貸款。它在許多不同的細分市場中非常多樣化。但這一切都很常見，因為它們大多是家族企業、企業（聽不清楚），以及另一個共同點。這些客戶大多是我們以前可能從未見過的客戶，但對於正在發生的所有破壞，他們要么沒有更多的銀行業務，要么對銀行的變化感到非常不滿意，因為合併或三月中旬以來的一些動盪。

Okay. All right. That's helpful. And then Bill, in your sort of, I guess, soft margin guidance or thoughts on margin going forward. Does that, I guess, would include some continued mix shift into C&I from CRE? And just wondering, I don't know if you can give any sort of thoughts on how much we're talking in terms of C&I growth or mix shift through the end of the year that kind of lines up with your low single, or whatever it was, single-digit margin contraction from here?

好的。好的。這很有幫助。然後比爾，我想，在你的軟利潤指導或對未來利潤的想法中。我想，這是否會包括從 CRE 轉向 C&I 的持續混合轉型？只是想知道，我不知道你是否可以對我們正在討論的到年底的 C&I 增長或混合轉變的程度給出任何想法，這與你的低單曲或其他什麼一致是的，利潤率從這裡開始出現個位數收縮？

I'll try to give you an exact answer, but it's not that great in terms of mix in the entire portfolio and probably add just a couple of basis points in terms of margin. It's not the real driver. The real drivers are that the noninterest-bearing demand is leveling off, and that we're seeing less pressure on the deposit pricing side because we raised prices earlier and had more compression than others early on in the cycle.

我會盡力給你一個準確的答案，但就整個投資組合的組合而言，這並不是那麼好，並且可能只在保證金方面增加幾個基點。這不是真正的司機。真正的驅動因素是無息需求正在趨於平穩，而且我們看到存款定價方面的壓力較小，因為我們在周期早期就比其他人更早地提高了價格，並且受到了更多的壓縮。

Okay. So yes, it's not a big driver, but just curious what do you think in mix shift back half of the year, sorry if I missed it, in terms of potential growth in the C&I.

好的。所以，是的，這不是一個很大的推動因素，但只是好奇你對今年下半年的混合轉型有何看法，如果我錯過了，就 C&I 的潛在增長而言，抱歉。

Maybe just a couple of percent on the pie chart.

也許只是圓餅圖上的幾個百分點。

Okay. And then just lastly on efficiencies, as we think about -- you guys have always been a very efficient bank, obviously. And just given what the Fed has done and the contraction in margin, you have efficiency ratios now above the 50% mark. In your mind, do you think you just need to get back to more normalized margins to get back below that 50% range, particularly as you look at further investments? Is that the best way to think about it? Or how should we think about it?

好的。最後關於效率，正如我們所想，顯然，你們一直是一家非常有效率的銀行。考慮到聯準會的舉措和利潤率的收縮，現在的效率比率已超過 50%。在您看來，您是否認為您只需要恢復到更正常的利潤率即可回到 50% 的範圍以下，特別是當您考慮進一步投資時？這是最好的思考方式嗎？或者說我們該如何思考？

The banks that were at 50% are now at -- we were at 40%, we're at 50%. The banks that were at 50% are now at 60%. The thing that's constant though is the noninterest expense as a percentage of assets. And if you analyze peers on that basis, you'd see we were one of the best, and that's sort of holding constant. So based on that number, if we got the margin back up to 340 or so, I think we'd be back on that efficiency level of 40% or so.

以前是 50% 的銀行現在是——我們以前是 40%，現在是 50%。銀行的比例原來是 50%，現在是 60%。但不變的是非利息支出佔資產的百分比。如果你在此基礎上分析同行，你會發現我們是最好的之一，而且這種情況一直保持不變。因此，根據這個數字，如果我們將利潤率恢復到 340 左右，我認為我們將恢復到 40% 左右的效率水準。

(Operator Instructions) And the next question comes from Matthew Breese with Stephens Inc.

（操作員說明）下一個問題來自 Stephens Inc. 的 Matthew Breese。

Hey Bill, I sense some cautious optimism on the demand deposit front and stability in the mix of deposits. Has that held up so far in July? Are you seeing continued stability?

嘿比爾，我對活期存款和存款結構的穩定性感到謹慎樂觀。 7月到目前為止，這種情況還持續嗎？您看到持續的穩定嗎？

It's gone -- it leveled off completely in the second quarter, and then I saw a little bit very early in July. And so it's hard to tell right now, whether or not we're continuing to see demand in deposits fall. Usually, what happens with ConnectOne is happening for other banks as well. So I wonder what others are experiencing. But my belief is that it's certainly a leveling compared to the speed that it was declining earlier in the year.

它已經消失了——在第二季度完全趨於平穩，然後我在七月初看到了一點。因此，現在很難判斷存款需求是否會持續下降。通常，ConnectOne 發生的情況也會發生在其他銀行身上。所以我想知道其他人正在經歷什麼。但我相信，與今年早些時候的下降速度相比，這肯定是一個平穩的趨勢。

Okay. And then I appreciate all the NIM commentary. Maybe just give us some update on the NII outlook. It's been coming down for a couple of quarters for obvious reasons, deposits and rates. Is this a floor in your view or we near a floor?

好的。然後我感謝所有 NIM 的評論。也許只是給我們一些有關 NII 前景的最新資訊。由於存款和利率等顯而易見的原因，它已經連續幾個季度下降。這是您認為的樓層還是我們附近的樓層？

In terms of net interest income?

就淨利息收入而言？

Net interest income.

淨利息收入。

Net interest income, yes, because if we have -- obviously, if we have flat loans and market compression, then just think it's going to go down. That's just math. But I think we're getting close to margin fattening out. And I do -- even though we're talking about flat growth, we'll probably have a small amount of growth of loans over the course of the year. And -- so that's for this year. Next year is another story, probably get back -- even if we're not back to very large amounts of growth, it will probably be in the single digits, and we'll start seeing widening margin again. So I hope that helps you with your model.

淨利息收入，是的，因為如果我們有——顯然，如果我們有固定貸款和市場壓縮，那麼就認為它會下降。這只是數學。但我認為我們已經接近利潤率下降的境地。我確實這樣做——儘管我們談論的是平穩增長，但今年我們的貸款可能會有少量增長。這就是今年的情況。明年是另一個故事，可能回過頭來——即使我們沒有恢復到大幅增長，也可能是個位數，而且我們將開始再次看到利潤率擴大。所以我希望這對您的模型有所幫助。

Yes. Yes, it does. Maybe touching on fee income. The gain on sale items, and I believe that's tucked within other income. It's been volatile. What are -- what is the breakdown between BoeFly, SBA, other items? And is this quarter's $3.4 million rate something we can work off of and grow off of?

是的。是的，它確實。也許牽涉到費用收入。銷售商品的收益，我相信這包含在其他收入中。它一直不穩定。 BoeFly、SBA 和其他專案之間的細分是什麼？本季 340 萬美元的費率是我們可以依靠的工作和成長嗎？

Yes. My best guess would be yes. So that's something we can grow off of in terms of the SBA increasing a little bit in BoeFly as well. So BoeFly generates about $1 million a year in revenue. And right now, we're on a $500,000 a quarter pace on SBA. We did have some CRE sales and that is causing the volatility that I was aware of. It's been a tough market for that right now, but something that we probably will pick up again. There are bunch of banks in this area we have relationships with that look to us for product. And so I feel clear about this being the bottom, and now we can see growth from here.

是的。我最好的猜測是肯定的。因此，我們可以透過 BoeFly 的 SBA 增加一點來實現成長。因此 BoeFly 每年產生約 100 萬美元的收入。目前，我們的 SBA 每季支出 50 萬美元。我們確實有一些商業房地產銷售，這導致了我所意識到的波動。目前市場形勢嚴峻，但我們可能會再次崛起。我們與該地區的許多銀行有合作關係，他們向我們尋求產品。所以我很清楚這是底部，現在我們可以從這裡看到成長。

Okay. Appreciate that. Last one, Frank. I was hoping for some color on the late June interagency guidance around CRE accommodations and workouts that basically the regulators are saying, we acknowledge commercial real estate headwinds, please work with your customers. What does that mean in practice? What do you think the tools are that are at your disposal? And how does this pan out from a disclosure standpoint in your view?

好的。感謝。最後一位，弗蘭克。我希望 6 月底關於 CRE 住宿和鍛煉的機構間指導意見能有一些色彩，監管機構基本上是在說，我們承認商業房地產的逆風，請與您的客戶合作。這在實踐中意味著什麼？您認為您可以使用哪些工具？在您看來，從揭露的角度來看，這結果如何？

Yes. I think that just from a high-level perspective, anything that we've seen has really been the delta between what the contractual change in the obligation of a loan is relative to its interest rate and what is a market rate today is where the change has occurred. I don't want to give anyone the idea that we've done anything for anybody to go below what the market rate should be at this moment in time.

是的。我認為，僅從高層次的角度來看，我們所看到的任何東西實際上都是貸款義務的合約變化相對於其利率與今天的市場利率之間的增量，這就是變化所在已經發生了。我不想讓任何人認為我們已經為任何人做了任何事情來低於目前的市場利率。

If you have a contractual obligation at 250 or 300 basis points of some index. And that's way outside of market then obviously, we're going to try to make an accommodation. I would tell you though that it's been pretty far and between. Most folks are just happy that we're doing loan at whatever the contracted rate was.

如果您有某些指數 250 或 300 個基點的合約義務。顯然，這遠遠超出了市場範圍，我們將嘗試做出調整。但我會告訴你，這已經是相當遙遠的事了。大多數人都很高興我們以合約利率提供貸款。

But those that really aren't and want to seek out a better alternative somewhere else, there is an option to do that. And in very few cases that we had to actually sit down with the borrower and say, hey, we know your rates suppose the contraction change to X, but we're willing to take it to Y and get you through the next cycle. But my comments were that if we need to do that and it makes good economic sense, we're going to do that. We're a client-focused bank. That's the non-technical answer.

但對於那些確實不喜歡並希望在其他地方尋找更好的替代方案的人來說，有一個選擇可以做到這一點。在極少數情況下，我們實際上必須與借款人坐下來說，嘿，我們知道您的利率假設收縮變為X，但我們願意將其變為Y並幫助您度過下一個週期。但我的意見是，如果我們需要這樣做並且具有良好的經濟意義，我們就會這樣做。我們是一家以客戶為中心的銀行。這是非技術性的答案。

I don't know where I come out on this, whether it was constructive or not that statement by the regulators. The accounting for modifications changed. So that already happened. And that's a good thing, because it doesn't -- if you modify a loan to help the borrower and it continues to perform, everybody wins, the borrower, the bank and our shareholders. So those are good things. And it shouldn't sit on your books as a nonperforming asset, if you will.

我不知道我對此有何看法，監管機構的聲明是否具有建設性。修改的會計處理發生了變化。所以這已經發生了。這是一件好事，因為事實並非如此——如果你修改貸款以幫助借款人，並且貸款繼續有效，那麼每個人都會受益，借款人、銀行和我們的股東。所以這些都是好事。如果你願意的話，它不應該作為不良資產出現在你的帳簿上。

So we still have disclosure for loans that we modified during the period that are troubled, but it doesn't last forever as long as that loan continues to perform. So I'm not really sure how constructive it was, not there's like no big deal. Obviously, we don't want to give it away. But in the cases where it's needed, absolutely needed, that's a tool we've always had and we'll use.

因此，我們仍然會披露在陷入困境期間修改的貸款，但只要該貸款繼續履行，它就不會永遠持續下去。所以我不太確定它有多大建設性，但這沒什麼大不了的。顯然，我們不想放棄它。但在需要的情況下，絕對需要，這是我們一直擁有並且會使用的工具。

Okay. Understood. I appreciate that. Maybe just as a follow-up, in the case where you do have maybe a bad set of circumstances, a nasty rate reset combined with a nasty cap rate reset, are you finding that your clients, your borrowers are willing to put additional cash and equity into the deals, so-called cash and refi to keep the property in their pocket, so to speak?

好的。明白了。我很感激。也許作為後續行動，如果您確實遇到了一系列糟糕的情況，令人討厭的利率重置與令人討厭的上限利率重置相結合，您是否發現您的客戶、借款人願意投入額外的現金和可以這麼說，將股權納入交易，即所謂的現金和再融資，以將財產留在他們的口袋裡？

Yes. Matt, I would say definitely that is the case. I think for the -- in the cases where we have sat down with that type of borrower that has -- as they got caught up in a transitional property where things didn't work out exactly the way they wanted it, and now the latest resetting, they've been more than willing to give us personal guarantees, other collateral, potential cash into the deal, whatever it's going to take the right size of the loan. As you can see by our credit metrics, we have not run into the buzz saw of a problem loan in that regard. So I think we are reasonable here at ConnectOne Bank and working with our clients. And I think the clients, because of the quality of our client base, has been reasonable in working with us.

是的。馬特，我肯定會說確實如此。我認為對於——在我們與這類借款人坐下來交談的情況下——因為他們陷入了過渡性財產，事情並沒有完全按照他們想要的方式發展，現在最新的情況重置後，他們非常願意為我們提供個人擔保、其他抵押品、交易中的潛在現金，無論貸款規模是否合適。正如您從我們的信用指標中看到的那樣，我們在這方面尚未遇到問題貸款的問題。因此，我認為 ConnectOne Bank 與客戶的合作是合理的。我認為，由於我們客戶群的質量，客戶與我們的合作是合理的。

And this concludes the question-and-answer session. I would like to return the floor to management for any closing comments.

問答環節到此結束。我想請管理層發表任何結束意見。

Well, I want to thank everyone again for their time today, and certainly look forward to speaking with you all again during our third quarter conference call. So have a nice day. Enjoy the rest of your summer. Thank you again.

好吧，我想再次感謝大家今天抽出時間，當然也期待在第三季電話會議上再次與大家交談。祝你有美好的一天。享受你剩下的夏天。再次感謝你。

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

謝謝。會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。