Columbia Banking System Inc (COLB) 2024 Q2 法說會逐字稿

Welcome to the Columbia Banking Systems Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded.

歡迎參加哥倫比亞銀行系統 2024 年第二季財報電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將進行問答環節。[操作員說明] 請注意，今天的會議正在錄製中。

I would like to introduce Jackie Bohlen, Investor Relations Director, to begin the conference call. Please go ahead.

我想介紹投資者關係總監 Jackie Bohlen 來開始電話會議。請繼續。

Thank you, Lisa and good afternoon everyone. Thank you for joining us as we review our second quarter results. The earnings release and corresponding presentation are available on our website at columbiabankingsystem.com.

謝謝麗莎，大家下午好。感謝您與我們一起回顧第二季的業績。收益報告和相應的簡報可在我們的網站 columbiabankingsystem.com 上取得。

During today's call, we will make forward-looking statements, which are subject to risks and uncertainties and are intended to be covered by the Safe Harbor provisions of Federal Securities Law. For a list of factors that may cause actual results to differ materially from expectations, please refer to the disclosures contained within our SEC filings. We will also reference non-GAAP financial measures and encourage you to review the non-GAAP reconciliations provided in our earnings materials.

在今天的電話會議中，我們將做出前瞻性聲明，這些聲明存在風險和不確定性，並受聯邦證券法安全港條款的涵蓋。有關可能導致實際結果與預期產生重大差異的因素列表，請參閱我們向 SEC 提交的文件中包含的揭露內容。我們也會參考非 GAAP 財務指標，並鼓勵您查看我們的收益資料中提供的非 GAAP 調整表。

I will now hand the call over to Columbia's President and CEO, Clint Stein.

我現在將把電話轉給哥倫比亞大學總裁兼執行長克林特‧斯坦 (Clint Stein)。

Thank you, Jackie. Good afternoon everyone. We made considerable progress over the past three months on the initiatives we discussed in April. We enacted changes to the way we evaluate and approve deposit pricing, which resulted in increased stabilization in the cost of customer deposits. We also achieved more expense reductions during the quarter than what we anticipated and communicated to you in April.

謝謝你，傑基。大家下午好。過去三個月，我們在四月討論的舉措上取得了顯著進展。我們改變了評估和批准存款定價的方式，從而提高了客戶存款成本的穩定性。我們在本季實現的費用削減也比我們預期並在 4 月向您傳達的要多。

When we spoke last quarter, I outlined the realization of $43 million in annualized net cost reductions from the operational effectiveness work that began during the first quarter. This work is the result of identifying opportunities for improvement after observing a year of the combined company's operations.

當我們上季度發表演說時，我概述了第一季開始的營運效率工作實現了 4,300 萬美元的年度淨成本削減。這項工作是在觀察合併後公司一年的營運後發現改進機會的結果。

These opportunities resulted in a lower headcount given the elimination of redundant and overlapping positions and have simplified our organizational structure. But our opportunities are not limited to just expense cuts. They include revenue generating franchise reinvestment, and a cost conscious culture enables us to make reinvestments that support our long-term growth and profitability outlook.

由於消除了冗餘和重疊的職位，這些機會減少了員工人數，並簡化了我們的組織結構。但我們的機會不僅限於削減開支。其中包括創造收入的特許經營再投資，而成本意識文化使我們能夠進行再投資，以支持我們的長期成長和獲利前景。

Annualized expense reductions year-to-date from our operational effectiveness work equate to $64 million on a net basis and $76 million on a gross basis. We have roughly $6 million of remaining annualized expense reductions slated to be enacted in the third quarter, which will get us to our initiative goal of $70 million in net savings and $82 million on a gross basis. These savings are in addition to the $143 million net and $188 million gross savings related to last year's merger.

迄今為止，我們的營運效率工作每年減少的費用淨額為 6,400 萬美元，毛額為 7,600 萬美元。我們計劃在第三季實施約 600 萬美元的剩餘年度費用削減，這將使我們實現淨節省 7,000 萬美元和總節省 8,200 萬美元的倡議目標。這些節省還不包括與去年合併相關的 1.43 億美元淨節省和 1.88 億美元總節省。

We have achieved $264 million in annualized savings over the past 18 months, with $45 million already reinvested into the future growth of our company. We have $12 million of the $76 million of cost savings achieved in the first half of 2024 earmarked for franchise reinvestment that will occur over the next 18 months or so. We didn't execute on near-term expense initiatives at the detriment of the future growth and competitiveness of our company.

在過去 18 個月裡，我們實現了年化節省 2.64 億美元，其中 4,500 萬美元已經再投資於公司的未來發展。我們在 2024 年上半年實現的 7,600 萬美元成本節約中，有 1,200 萬美元專門用於未來 18 個月左右的特許經營再投資。我們沒有執行損害公司未來成長和競爭力的近期支出計畫。

At the end of the third quarter, our gross expense reductions will be $270 million merger-to-date, with the previously mentioned $57 million either already reinvested or allocated for reinvestment, resulting in net reductions of $213 million or 58% above our original commitment of $135 million at the announcement of the merger.

到第三季末，合併至今我們的總費用削減將達到2.7 億美元，其中前面提到的5700 萬美元已經進行再投資或分配用於再投資，從而淨減少2.13 億美元，比我們最初的承諾高出58%合併宣佈時價值 1.35 億美元。

These steps were not taken with the survivors mindset. We executed this initiative and will continuously evaluate our expense base so we can thrive well into the future while delivering on our promise of being a high performer. Our headcount reductions were wrapped up during the second quarter. The remaining $6 million of planned expense savings will come from other operational sources during the third quarter.

這些步驟並不是以倖存者的心態採取的。我們執行了這項舉措，並將持續評估我們的費用基礎，以便我們能夠在未來蓬勃發展，同時兌現我們成為高績效企業的承諾。我們的裁員工作在第二季完成。剩餘的 600 萬美元計畫開支節省將來自第三季的其他營運來源。

The savings I outlined are as of quarter end. They are not fully reflected in the second quarter's normalized operating run rate of roughly $270 million, which does not include the previously mentioned expected reinvestments in the coming quarters. While we have made substantial progress toward the annualized fourth quarter expense run rate we outlined in our March update, we are not adjusting that guide given these planned reinvestments.

我概述的節省額是截至季末的。它們並未完全反映在第二季度約 2.7 億美元的正常化營運運行率中，其中不包括前面提到的未來幾季的預期再投資。雖然我們在三月更新中概述的第四季度年化費用運行率方面取得了實質進展，但考慮到這些計劃的再投資，我們不會調整該指南。

As we wind down the work to right size our expense base, our ability to invest in our people, our franchise and our suite of products and services remains fully intact. We believe these revenue generating investments, along with a lower expense base, will continue to drive additional long-term shareholder value. The heavy lifting is behind us and we're very optimistic for the future. The franchise we set out to create with the merger in 2021 is here. We're running it and we're making it resilient to any operating environment.

當我們逐步減少開支以調整開支基礎時，我們對員工、特許經營權以及產品和服務套件的投資能力仍然完好無損。我們相信，這些創收投資以及較低的費用基礎將繼續推動額外的長期股東價值。繁重的工作已經過去，我們對未來非常樂觀。我們計劃在 2021 年合併時創建的特許經營權就在這裡。我們正在運行它，並使其能夠適應任何操作環境。

Our early success on near-term initiatives has not diminished our laser focus on regaining Columbia's placement as a top quartile bank as we drive toward long-term, consistent, repeatable performance.

我們在近期措施上取得的早期成功並沒有削弱我們在努力實現長期、一致、可重複的業績的同時，繼續專注於重新獲得哥倫比亞銀行前四分之一銀行的地位。

I'll now turn the call over to Ron.

我現在將電話轉給羅恩。

All right thank you, Clint. We reported second quarter GAAP EPS of $0.57, an operating EPS of $0.57, and our operating return on average tangible equity was 17%, while the operating PP&R was $219 million. Please refer to the non-GAAP reconciliations provided at the end of our earnings release and presentation for details related to our calculation of operating metrics.

好的，謝謝你，克林特。我們公佈的第二季 GAAP 每股收益為 0.57 美元，營運每股收益為 0.57 美元，平均有形資產營運回報率為 17%，而營運 PP&R 為 2.19 億美元。請參閱我們的收益發布和簡報末尾提供的非 GAAP 調節表，以了解與我們的營運指標計算相關的詳細資訊。

OOn the balance sheet we have limited growth and reduced interest bearing cash levels to target approximately $1.5 billion. Within deposits, we had more of a traditional seasonal decline in noninterest bearing demand related to taxes and corporate distributions. Our net interest margin increased to 3.56% in Q2, though it was 3.52% for the month of June. Both were within our estimated range of 3.45% to 3.60%.

O在資產負債表上，我們的成長有限，並將帶息現金水準降低至約 15 億美元的目標。在存款方面，與稅收和企業分配相關的無息需求更多地出現了傳統的季節性下降。第二季我們的淨利差增加至 3.56%，而 6 月為 3.52%。兩者均在我們 3.45% 至 3.60% 的估計範圍內。

Asset rate pricing more than offset a 6 basis point increase in interest bearing liability costs. Our cost of interest bearing deposits was 2.97% for the quarter and 3% for the month of June. The quarter also benefited from higher prepayment speeds, which resulted in higher discount accretion for the securities portfolio. Looking forward we expect purchase accounting income to align more closely to the first quarter's level than the second quarter's level as detailed towards the end of the earnings release.

資產利率定價足以抵銷計息負債成本增加 6 個基點的影響。本季我們的計息存款成本為 2.97%，6 月為 3%。該季度還受益於較高的預付款速度，這導致證券投資組合的折扣增加。展望未來，我們預計採購會計收入將比第二季的水平更接近第一季的水平，如收益發布結束時詳細說明的那樣。

Our projected interest rate sensitivity under both ramp and shock scenarios remains in a liability sensitive position, and we expect our rates down deposit betas to approximate those experienced on the way up. Our provision for credit loss was $32 million for the quarter. The portion related to our leasing portfolio declined 18% this quarter to $17 million. Our overall allowance for credit losses remains robust, closing the quarter at 1.16% of total loans, or 1.35% when including the remaining credit discount.

我們預期在斜坡和衝擊情境下的利率敏感度仍然處於負債敏感的位置，我們預期存款貝塔利率下降將接近上升過程中經歷的利率敏感度。本季我們的信貸損失準備金為 3,200 萬美元。本季與我們的租賃投資組合相關的部分下降了 18%，至 1700 萬美元。我們的整體信貸損失準備金仍然強勁，本季末佔貸款總額的 1.16%，如果包括剩餘的信貸折扣，則為 1.35%。

Total GAAP expense for the quarter was $279 million, while operating expense was $262.5 million, both down from the first quarter, reflecting the efficiency initiative Clint discussed earlier. As discussed last quarter, we've included the $12 million restructuring charge this quarter in non-operating expense. Included in operating expense was a $7.7 million one-off nonrecurring credit. Absent this, I pegged our normalized level of operating expense at $270.2 million in Q2, down 5% from a normalized level of $286 million in the first quarter.

本季 GAAP 總費用為 2.79 億美元，營運費用為 2.625 億美元，均較第一季有所下降，反映了克林特先前討論的效率舉措。如上季所討論的，我們已將本季 1,200 萬美元的重組費用計入非營運費用。營運費用包括 770 萬美元的一次性非經常性信貸。如果沒有這一點，我將第二季的正常營運支出水準定為 2.702 億美元，比第一季 2.86 億美元的正常水準下降 5%。

We continue to expect our Q4 operating expense run rate to be in the annualized range of $965 to $985 million, excluding CDI amortization. After adjustments, our normalized Q2 run rate was at the lower end of that range. As Clint noted, we expect franchise reinvestment to drive the run rate higher, partially offset by additional cost savings related to near-term initiatives.

我們繼續預期第四季度營運費用運行率將在年化 965 美元至 9.85 億美元之間，不包括 CDI 攤銷。調整後，我們的標準化第二季運行率處於該範圍的下限。正如克林特所指出的那樣，我們預計特許經營再投資將推高運行率，部分被與近期舉措相關的額外成本節省所抵消。

I'll close with commentary about our regulatory capital position. Our risk based capital ratios increased as expected in Q2. We expect to build capital above all our long-term targets, which will provide for enhanced future flexibility.

最後我將對我們的監管資本狀況發表評論。第二季我們基於風險的資本比率如預期增加。我們期望建立高於我們所有長期目標的資本，這將增強未來的靈活性。

And with that, I'll now turn the call over to Frank.

現在，我將把電話轉給弗蘭克。

Thank you, Ron. The stable performance of our loan portfolio underscores the robustness of our through the cycle underwriting process and the caliber of our borrowers and sponsors, even as we continue the transition to a more typical credit environment after a prolonged period of exceptional quality.

謝謝你，羅恩。我們的貸款組合的穩定表現突顯了我們整個週期承銷流程的穩健性以及借款人和保薦人的素質，即使我們在經歷了長期的卓越品質之後繼續向更典型的信貸環境過渡。

This quarter, we saw 31 to 89-day delinquencies improve 22% to $86 million, with the rise in 90 plus day delinquencies primarily resulting from the expiration of COVID related designations within the residential mortgage portfolio. Nonaccrual loans decreased approximately $6 million, mainly due to reduced balances in the FinPac portfolio. These overall classified loans remain stable.

本季度，我們看到 31 至 89 天的拖欠率減少了 22%，達到 8,600 萬美元，其中 90 天以上的拖欠率增加主要是由於住宅抵押貸款組合中與新冠病毒相關的指定到期。非應計貸款減少約 600 萬美元，主要是由於 FinPac 投資組合餘額減少。這些分類貸款整體保持穩定。

Our proactive and detailed monitoring of the portfolio, complemented by targeted reviews of specific asset categories like multifamily and office properties, has revealed no systemic issues across various industries, sectors or geographic regions. Notably, there are effectively zero delinquencies in our entire non-owner occupied and multifamily portfolios at the end of the quarter, and delinquencies within office properties specifically were remarkably low at roughly 40 basis points of the total office portfolio, with no charge offs in either category.

我們對投資組合進行主動和詳細的監控，並輔以對多戶住宅和辦公物業等特定資產類別的有針對性的審查，沒有發現跨行業、部門或地理區域的系統性問題。值得注意的是，截至本季末，我們整個非業主自用和多戶住宅投資組合的拖欠率實際上為零，特別是辦公室物業的拖欠率非常低，佔整個辦公室投資組合的大約40 個基點，且兩者都沒有沖銷。

Overall, net charge offs for the company stood at an annualized rate of 32 basis points for the quarter of which the bank contributed six basis points and FinPac 26 basis points. We remain very satisfied with the quality and directionality of our granular and diversified loan portfolio, which is highlighted in greater detail in our investor presentation. I will now turn the call over to Tory.

總體而言，該公司本季的淨沖銷年化率為 32 個基點，其中銀行貢獻了 6 個基點，FinPac 貢獻了 26 個基點。我們對我們精細且多元化的貸款組合的品質和方向性仍然非常滿意，這在我們的投資者介紹中更詳細地強調了這一點。我現在將把電話轉給保守黨。

Thank you, Frank. Targeted actions taken during the first quarter resulted in tighter control and a renewed discipline around deposit pricing. Changes enacted directly contributed to the stability in our interest bearing core deposit rates in the latter part of the first quarter and through the second quarter as our teams continued to lead with service, not price, in their customer interactions.

謝謝你，弗蘭克。第一季採取的有針對性的行動導致了對存款定價的更嚴格的控制和新的紀律。由於我們的團隊在客戶互動中繼續以服務而非價格領先，因此所實施的變化直接促進了第一季後半段和第二季度我們計息核心存款利率的穩定。

Our branches recently wrapped up a three-month small business campaign in late April, which generated nearly 6000 accounts and $345 million in new deposits to the bank. Importantly, 27% of those balances were noninterest bearing and these accounts have collectively increased by roughly $20 million since the campaign ended in April.

我們的分行最近於 4 月底結束了一項為期三個月的小型企業活動，該活動為銀行創造了近 6000 個帳戶和 3.45 億美元的新存款。重要的是，其中 27% 的餘額是無息的，自 4 月活動結束以來，這些帳戶總共增加了約 2000 萬美元。

A new campaign was launched in June, with over $110 million in new money coming to the Bank through mid-July. As with the spring campaign, the summer campaign includes bundled solutions for customers without promotional pricing or special products. New accounts enhance the granularity of our already diversified deposit base and provide numerous opportunities to deepen relationships over time as businesses grow and we fulfill their needs with additional products and services.

6 月推出了一項新活動，到 7 月中旬為止，已有超過 1.1 億美元的新資金流入該銀行。與春季活動一樣，夏季活動包括為客戶提供捆綁解決方案，無需促銷價格或特殊產品。新帳戶增強了我們已經多元化的存款基礎的粒度，並隨著業務的發展提供了大量加深關係的機會，並且我們透過額外的產品和服務滿足他們的需求。

Our cost of interest bearing deposits increased by 9 basis points during the second quarter to 2.97% compared to 34 basis point increase during the first quarter, highlighting a significantly slower pace of increase following our actions.

我們的計息存款成本在第二季度增加了 9 個基點，達到 2.97%，而第一季則增加了 34 個基點，這表明我們採取行動後的成長速度明顯放緩。

Our cost of total deposits was 2.01% and if we isolate our customer balances, 36% of which are noninterest bearing, our total cost of customer deposits was 1.56% in the second quarter. Our focus on relationship banking continues to benefit our performance in this higher rate environment.

我們的總存款成本為 2.01%，如果我們分離出我們的客戶餘額（其中 36% 是無息的），我們第二季的客戶存款總成本為 1.56%。我們對關係銀行業務的關注繼續有利於我們在這種高利率環境下的表現。

While recent pricing trends and our successful deposit campaign results are encouraging, the second quarter was also impacted by anticipated declines in noninterest bearing deposit balances due to seasonal pressures that include customer tax payments. Noninterest bearing balances were down 2% on both an end of period and average basis in the second quarter, while pricing pressures have moderated compared to 2023, as the Fed funds rate has remained constant for the past year, persistent inflation continues to draw down customers account balances.

雖然最近的定價趨勢和我們成功的存款活動結果令人鼓舞，但由於包括客戶納稅在內的季節性壓力，第二季也受到無息存款餘額預期下降的影響。第二季無息餘額期末和平均水平均下降 2%，而價格壓力與 2023 年相比有所緩解，因為聯邦基金利率在過去一年中保持不變，持續的通膨繼續吸引客戶帳戶餘額。

Our teams are focused on generating new business to offset this headwind, as evidenced by our ongoing campaigns and our proactive activity by our bankers. Their success will be key to containing our deposit cost regardless of whether we see any rate cuts from the Fed this year.

我們的團隊專注於創造新業務以抵消這一不利因素，我們正在進行的活動和銀行家的積極主動活動證明了這一點。無論聯準會今年是否降息，它們的成功都將是控制存款成本的關鍵。

Turning to the loan portfolio, relationship driven growth remains our primary focus. Loan balances increased 2% on an annualized basis in the second quarter after adjusting for a $95 million in targeted loan sales. Commercial lines of credit and construction draws activity drove the quarter's expansion. While our loan pipeline remains steady, our core fee income pipelines continue to expand. We are seeing growth across categories including treasury management, commercial card, merchant services and international banking, to name a few. The contribution of these line items to core fee income was up 7% on the quarter and 14% from a year ago.

談到貸款組​​合，關係驅動的成長仍然是我們的主要關注點。在調整了 9,500 萬美元的目標貸款銷售後，第二季貸款餘額按年化計算增加了 2%。商業信貸額度和建築提款活動推動了本季的擴張。在我們的貸款管道保持穩定的同時，我們的核心費用收入管道繼續擴大。我們看到資金管理、商業卡、商業服務和國際銀行業務等各個類別的成長。這些項目對核心費用收入的貢獻本季成長了 7%，比去年同期成長了 14%。

We are also seeing tremendous traction with our Umpqua Smart leads. Umpqua Smart leads use predictive analytics to help our teams capture additional business with our existing customer base through needs based solutions. Our close rate was up 22% between the first and second quarter.

我們也看到 Umpqua Smart 銷售線索具有巨大的吸引力。Umpqua Smart 領導者使用預測分析來幫助我們的團隊透過基於需求的解決方案從現有客戶群中獲取更多業務。第一季和第二季之間，我們的成交率上升了 22%。

While incremental growth in a single product takes time to drive notable bottom line performance, we are encouraged by the favorable trends in our collective products and services. Our bankers remain focused on the activities that drive balanced growth in customer deposits, core fee income and relationship based loans.

雖然單一產品的增量成長需要時間來推動顯著的利潤績效，但我們對集體產品和服務的有利趨勢感到鼓舞。我們的銀行家仍然專注於推動客戶存款、核心費用收入和基於關係的貸款平衡成長的活動。

I'll now turn the call back over to Clint.

我現在將把電話轉回給克林特。

Thanks Tory. We remain committed to optimizing our financial performance to drive long-term shareholder value. In line with our expectations, our capital position continues to build as our ratios expand. At a total risk based capital ratio of 12.1%, the parent company is above our long-term target of 12%. The bank, however, remains modestly below at roughly 11.7%.

謝謝托里。我們仍然致力於優化我們的財務業績，以推動長期股東價值。與我們的預期一致，隨著我們的比率擴大，我們的資本狀況繼續增強。母公司的總創投率為 12.1%，高於我們 12% 的長期目標。然而，該銀行的利率仍略低於 11.7% 左右。

Our TCE ratio was 6.8% at quarter end, up from 6.6% at March 31 despite some modest adverse impacts from AOCI. We continue to target a ratio closer to 8% before considering meaningful options for deploying excess capital. The second quarter demonstrates our ability to organically generate capital well above what is required to support prudent growth and our regular dividend, providing us longer term flexibility for additional returns to shareholders. This concludes our prepared comments, Chris, Tory, Ron, Frank and I are happy to take your questions now. Lisa, please open the call for Q&A.

儘管 AOCI 產生了一些輕微的不利影響，但截至季度末，我們的 TCE 比率為 6.8%，高於 3 月 31 日的 6.6%。在考慮部署過剩資本的有意義的選擇之前，我們繼續將目標比率設定為接近 8%。第二季證明了我們有機產生資本的能力遠高於支持審慎成長和定期股利所需的資本，為我們為股東提供額外回報提供了長期靈活性。我們準備好的評論到此結束，克里斯、托里、羅恩、弗蘭克和我現在很高興回答你們的問題。麗莎，請打開問答電話。

Thank you. As a reminder, if you would like to ask a question, please press star one one on your telephone. We also ask that you please wait for your name and company to be announced before you proceed.

謝謝。提醒一下，如果您想提問，請在電話上按星號一一。我們也要求您等待公佈您的姓名和公司後再繼續。

The first question is coming from Jon Arfstrom of RBC Capital Markets. Your line is open.

第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。您的線路已開通。

Hey, thanks. Good afternoon everyone.

嘿，謝謝。大家下午好。

Hi Jon.

嗨喬恩。

Hey, looks like a good quarter. Ron maybe start with you. Can you maybe help us think through the margin outlook a bit more? I see the 352 margin you flagged in June. I hear you on a little less accretion but you probably have a rebound in noninterest bearing. So help us think through a good starting point of some of the puts and takes that you see on the margin outlook.

嘿，看起來季度不錯。榮恩也許會從你開始。您能否幫助我們進一步思考利潤率前景？我看到您在 6 月標記的利潤為 352。我聽說你的成長有所減少，但非利息支出可能有所反彈。因此，請幫助我們思考您在保證金前景中看到的一些看跌期權和看跌期權的良好起點。

Yes. Good question. Actually, really no change from the last quarter. It's really going to depend on deposit flows. Do we see that seasonal strength and arms bearing in Q3 will be on the upper end of that range, if not, we'll be in the middle or on the lower end.

是的。好問題。事實上，與上季相比確實沒有變化。這實際上取決於存款流量。我們是否看到第三季度的季節性強度和武器軸承將處於該範圍的上端，如果不是，我們將處於中間或下端。

But I do want to flag the discount accretion was a bit of higher in Q2. I don't expect that to recur unless you saw a meaningful rally in the bond markets, so probably somewhere in the middle of the range.

但我確實想指出第二季的折扣增加有點高。我預計這種情況不會再發生，除非你看到債券市場出現有意義的反彈，所以可能會在區間的中間某個位置。

Okay. Okay, good. That's helpful. And then just to confirm, you guys would welcome a couple of cuts. It looks that way in your documents and your comments, but you'd welcome a couple of cuts in terms of the margin outlook?

好的。好的。這很有幫助。然後確認一下，你們會歡迎一些刪減。在您的文件和評論中看起來是這樣，但您希望在利潤前景方面進行一些削減嗎？

Yes, it would be beneficial, obviously, in interest income, we are liability sensitive, positioning the balance sheet that way over the last year. So what we position for it when and if it ever comes.

是的，顯然，在利息收入方面，這將是有益的，我們對負債敏感，並將資產負債表定位在去年。那麼，當它到來時，我們會為它定位什麼。

Yes. Okay, good. And then Clint or Tory, obviously some decent success on the deposit initiatives, can you talk about what's really worked well and what you're seeing in terms of overall deposit cost pressures? Thank you.

是的。好的。然後克林特或託裡，顯然在存款計劃方面取得了一些不錯的成功，您能談談什麼是真正有效的以及您在總體存款成本壓力方面看到的情況嗎？謝謝。

Sure Jon, this is Tory. I would say I think there are a couple of things that work really well, and we mentioned in the call, and I think Chris maybe can add in on this. I think our small business group within retail, the branch system, has done just an outstanding job just being kind of having energy deployed outbound, and I think the entire company is doing that.

當然，喬恩，這是托里。我想說，我認為有一些事情非常有效，我們在電話中提到過，我認為克里斯也許可以補充這一點。我認為我們零售業的小型業務部門（分支系統）在將精力部署到外部方面做得非常出色，我認為整個公司都在這樣做。

I mean, it's been a year and a half as we kind of work through all the process, product knowledge, infrastructure within the company, and just a ton of energy that's being deployed outbound and they had some great results in without pricing, without any special pricing or any other gimmicks, it's really getting out and hitting the street and presenting the value of Umpqua Bank and what we can do for small businesses and what we can do for commercial customers to just bring their relationships over, so added a ton of accounts and a lot of balances.

我的意思是，我們已經花了一年半的時間來完成公司內部的所有流程、產品知識、基礎設施，以及大量向外部署的能源，他們在沒有定價、沒有任何費用的情況下取得了一些很好的成果。 ，以建立他們的關係，所以添加了大量帳戶和大量餘額。

On the pricing front, I think this has been the very constant since we employed some restrictive pricing pressure on our bankers within the footprint. We've seen rates continue to kind of track down a little bit, 5, 10, 25 basis points as we've had conversations with customers, one by one by one. And I think we've done a really nice job kind of keeping the lid on costs. And I don't think there's, at this point, any additional outside pressure from many institutions that bring that back up.

在定價方面，我認為自從我們在業務範圍內對銀行家施加了一些限制性定價壓力以來，這種情況就一直存在。當我們與客戶進行一一交談時，我們看到利率繼續小幅下降，5、10、25 個基點。我認為我們在控製成本方面做得非常好。我認為目前許多機構還沒有任何額外的外部壓力來推動這一趨勢。

So, Chris, I don't know if you have anything else you want to add to that.

所以，克里斯，我不知道你是否還有什麼要補充的。

Yes thanks, Tory. Hey Jon, this is Chris. I think that what Tory is saying there, leading into it there, there are a ton of conversations that are going on every single day with our customers about what they're using the money for, how long they're looking for, what the current rate environment is, what the competitive environment is. And I think part of the competitive environment is definitely calmed down, which makes those conversations a little bit easier.

是的，謝謝，托里。嘿喬恩，這是克里斯。我認為保守黨在那裡所說的，以及我們的客戶每天都在進行大量的對話，討論他們將錢用於什麼目的，他們需要多長時間，他們想要什麼。環境是什麼。我認為部分競爭環境肯定已經平靜下來，這使得這些對話變得更容易。

It's not as frantic, and it's a lot of hard work by our bankers that are out there each and every day doing that and working with the customers about directionally where we go if we get a cut. Our customers, I think, will be ready because our bankers have been having conversations with them and we'll see if that happens, so yes.

這並不那麼瘋狂，而是我們的銀行家每天都在努力工作，並與客戶合作，確定如果我們獲得提成，我們該去往何處。我認為我們的客戶會做好準備，因為我們的銀行家一直在與他們進行對話，我們會看看這種情況是否會發生，所以是的。

Okay. Thanks, guys. Appreciate it.

好的。多謝你們。欣賞它。

Welcome

歡迎

Thank you. And our next question will be coming from Matthew Clark of Piper Sandler. Your line is open.

謝謝。我們的下一個問題將來自 Piper Sandler 的馬修克拉克。您的線路已開通。

Hey, good afternoon, everyone. I guess, on deposit costs for my first question, it looks like you lowered deposit rates in some of your consumer categories in early July. I guess, can you speak to kind of retention as you've been doing that and plans to do more or not?

嘿，大家下午好。我想，關於我的第一個問題的存款成本，看起來你們在七月初降低了一些消費類別的存款利率。我想，您能談談您一直在這樣做併計劃做更多事情的保留情況嗎？

Yes, Matthew. This is Chris. Thanks for the question. We really lowered them throughout the last few months. July was one piece of it, but really started back in the late February timeframe. Retention has been extremely good. When you look at and I'll point to the campaign that Tory mentioned and all of those balances, new accounts that came in, they're actually growing and without extra pricing.

是的，馬修。這是克里斯。謝謝你的提問。在過去的幾個月裡，我們確實降低了它們。七月只是其中的一部分，但真正開始要追溯到二月底的時間範圍內。保留率非常好。當你看到時，我會指出 Tory 提到的活動以及所有這些餘額、新帳戶，它們實際上正在增​​長，並且沒有額外的定價。

And then on the CD portion and things of that nature, we're maintaining, retaining 80%, 85% of those balances and so, yes we're following it extremely closely. Commercial is experiencing the same thing. And again, we still have flexibility to make exceptions and do things that make sense, but it's really working on that piece of it. We'll continue to look for opportunities in the competitive market of where our posted rates are, and we'll continue to work the exceptions down as we can. And then, of course, pay attention to what our forward CD pricing is. Torry if you want to add anything.

然後，在 CD 部分和類似性質的事情上，我們正​​在維持、保留這些餘額的 80%、85%，所以，是的，我們正在非常密切地關注它。商業界也正在經歷同樣的事情。再說一次，我們仍然可以靈活地做出例外並做有意義的事情，但我們確實正在努力解決這個問題。我們將繼續在我們公佈的費率所在的競爭市場中尋找機會，並且我們將繼續盡我們所能減少例外情況。當然，也要注意我們的遠期 CD 定價是多少。如果您想添加任何內容，請托里。

No, I think that's it.

不，我想就是這樣。

Great. And, then on your brokered CDs and borrowings, they were both relatively flat in the quarter. Could you just speak to whether or not those might start coming down and just trying to get a sense for the pace and magnitude and the overall kind of earning asset level.

偉大的。而且，在您的經紀 CD 和借款方面，本季度它們都相對持平。您能否談談這些是否可能開始下降，並試圖了解其速度、規模以及整體獲利資產水準。

Hey Matt, this is Ron. Good question. If you look back at the last couple of quarters, we've taken down the level of in spring cash at the Fed, now in this right around $1.5 billion. And that's really been the clutch as to what we do with the wholesale funds based on other loan and deposit flows.

嘿馬特，這是榮恩。好問題。如果你回顧過去幾個季度，我們已經降低了聯準會的春季現金水平，目前約為 15 億美元。這確實是我們如何處理基於其他貸款和存款流的批發資金的關鍵。

So, if we see net seasonal growth in deposits second half of the year over and above loans, then you'll see those wholesale balances drop, but the offset's always going to be targeting right around $1.5 billion on instrument cash at the Fed.

因此，如果我們看到下半年存款的季節性淨增長超過貸款，那麼你會看到這些批發餘額下降，但抵消的目標始終是聯準會約 15 億美元的工具現金。

And, of those wholesale funds be it broker deposits or the home or bank advances, they're structured anywhere from two to call it 9, 10 months out. So we've got plenty of opportunity to drop that over the course of the year.

而且，在這些批發基金中，無論是經紀人存款還是房屋或銀行預付款，它們的結構都是從兩個到 9 個月或 10 個月不等。因此，我們有很多機會在這一年中放棄這一點。

Okay, great. And then may be one for Frank on charge-offs, I didn't see FinPac isolated. I know you gave the bank charge-off of six basis points, but I haven't done the math to back into FinPac. But can you just speak to how the FinPac net charge-offs trended in 2Q and I think there's an expectation for more relief in the second half, but just want to double check there.

好的，太好了。然後可能是 Frank 的沖銷問題之一，我沒有看到 FinPac 被孤立。我知道你給銀行沖銷了六個基點，但我還沒計算過回到FinPac。但您能談談 FinPac 淨沖銷在第二季度的趨勢嗎？

Yes, FinPac came in at about 26 of the total charge-offs, and they're right on track to our expectations. We're definitely seeing improvement through all of the delinquency bands. Notably, 31 to 180-day delinquencies are down over 12% from last quarter.

是的，FinPac 大約佔沖銷總額的 26 筆，而且他們的表現完全符合我們的預期。我們確實看到了所有犯罪範圍的改善。值得注意的是，31 至 180 天的拖欠率比上季下降了 12% 以上。

Non accrual balances as a percent of the portfolio are down about 23% and those turn into future charge-offs. And, so throughout the rest of the year, I think we're going to see more significant improvement than we've seen over the course of the last two quarters. So things are progressing as planned.

非應計餘額佔投資組合的百分比下降了約 23%，這些餘額將轉化為未來的沖銷。而且，在今年剩下的時間裡，我認為我們將看到比過去兩個季度更顯著的改善。所以事情正在按計劃進行。

Great. Thanks again.

偉大的。再次感謝。

Yes.

是的。

Thanks again, thank you for a moment. And our next question will be coming from David Feaster of Raymond James. Your line is open.

再次感謝，暫時謝謝您。我們的下一個問題將來自雷蒙德詹姆斯的大衛菲斯特。您的線路已開通。

Yes, good afternoon, everybody.

是的，大家下午好。

Hey David.

嘿大衛。

It's great to see the significant progress that the team, you guys have made on the cost savings from that deep dive and exceeded expectations, but you talked about reinvesting some of those savings. Could you maybe talk about what you're reinvesting in, in the roadmap and timeline for some of those initiatives?

很高興看到團隊在深入研究中節省成本方面取得了重大進展，並且超出了預期，但你們談到了將其中一些節省的資金進行再投資。您能否談談您正在對其中一些舉措的路線圖和時間表進行再投資的內容？

Yes, I'll start and then I'm sure that Chris and Tory might want to add in and clean up the mess I leave on the table here with it. But in my prepared comments, I talked about the reinvestment that's already occurred and we've spoken over the last couple of years about where we've expanded into new geographies that’s we tracked that and that's what's coming off that original $188 million that we talked about a year ago to get to that net number of the 143. So we still have some things.

是的，我會開始，然後我確信克里斯和托里可能會想加入並清理我留在桌子上的混亂。但在我準備好的評論中，我談到了已經發生的再投資，我們在過去幾年中談到了我們在新地區的擴張——我們對此進行了跟踪，這就是最初 1.88 億美元的投資結果我們一年前曾討論過要達到143 的淨數字。所以我們還有一些事情。

We opened our first branch in the Phoenix metro area last month. We have a second one opening in Scottsdale here in a couple of weeks, and then we have some other locations where we're putting in so we can have full service banking capabilities within those new geographies. .

上個月，我們在鳳凰城都會區開設了第一家分店。幾週後，我們將在斯科茨代爾開設第二家分行，然後我們將在其他一些地點開設分行，以便我們能夠在這些新地區擁有全面的銀行服務能力。。

And Tory was reviewing the new markets activity from a commercial perspective with me yesterday, and it's pretty impressive what the teams have accomplished in all of those markets. And so our commitment to them is that if they perform and produce, that we will continue to invest in helping them grow those markets and so that's what some of that looks like.

昨天，Tory 與我一起從商業角度回顧了新市場活動，團隊在所有這些市場中取得的成就令人印象深刻。因此，我們對他們的承諾是，如果他們表現出色並產生成果，我們將繼續投資幫助他們發展這些市場，這就是其中的一些內容。

The other thing is we continue to attract really, really good talent from other organizations, and so we're seeing opportunities to fill in, in certain geographies and strengthen the team. We've got some technology platforms that are in flight that are pretty exciting for our teams. I'm not going to mention on the call because I don't want to give our playbook away to any of our competitors that might listen in. But so it's people, it's facilities, it's technology, it's all the things that we think will help us grow revenue over the long haul. Tory, Chris, anyone?

另一件事是，我們繼續從其他組織吸引真正非常優秀的人才，因此我們看到了在某些地區填補空缺並加強團隊的機會。我們已經擁有一些正在運行的技術平台，這對我們的團隊來說非常令人興奮。我不會在電話中提及，因為我不想將我們的劇本洩露給任何可能會傾聽的競爭對手。但我們認為，人才、設施、技術以及所有這些能夠幫助我們長期增加收入的東西。托里、克里斯，有人嗎？

I think it's well said. I mean, I think Clint, really, one thing you mentioned I think we're really proud of is we had four new commercial offices that we partnered with, retail banking. We've got branches that are good flight, and they're in, some great markets for us, [indiscernible] in the Bay Area and Napa Valley and Arizona, Colorado and Utah, all are well ahead of budget and substantially in the black profitable and really great to see.

我覺得說得很好。我的意思是，我認為克林特，你提到的一件事我認為我們真正感到自豪的是我們與零售銀行合作了四個新的商業辦事處。我們有一些運作良好的分支機構，而且它們在一些對我們來說很棒的市場中，[音頻不清晰]在灣區、納帕谷、亞利桑那州、科羅拉多州和猶他州，所有這些都遠遠超出了預算，而且基本上實現了盈利有利可圖，真的很高興看到。

So it really gives us a ton of confidence that we can continue to hire and attract really talented folks and put them in market and give them the tools to be successful. We've got some product and some technology that, as you mentioned, I think it's just going to continue to advance the company and our ability to serve our customers. And I think we're all really excited about certainly the future of this organization.

因此，這確實給了我們很大的信心，我們可以繼續僱用和吸引真正有才華的人，並將他們投入市場，並為他們提供成功的工具。正如您所提到的，我們擁有一些產品和技術，我認為這將繼續推動公司發展以及我們服務客戶的能力。我認為我們都對這個組織的未來感到非常興奮。

Yes David and this is Chris. What I'll add is just I want to kind of emphasize full service while we have very successful commercial teams in those markets that are now, you know, give us a flag plant, plant the branch in there. It'll help us grow. We're not just looking to grow in retail and commercial. It'll be across wealth. It'll be mortgage offerings. It's going to be full service like we do in our other markets. It will just look more branch light than it would look in say, Washington and Oregon.

是的，大衛，這是克里斯。我要補充的是，我想強調全方位服務，同時我們在這些市場擁有非常成功的商業團隊，現在，你知道，給我們一個旗艦工廠，在那裡種植分支機構。它會幫助我們成長。我們不僅僅希望在零售和商業領域實現成長。它將跨越財富。這將是抵押貸款產品。就像我們在其他市場所做的那樣，它將提供全方位服務。它看起來會比在華盛頓和俄勒岡州看起來更有樹枝光。

Okay, you guys, you also sold a book of transactional resi mortgages in the quarter. Are there any other transactional books that you may be interested in selling to maybe help optimize the balance sheet further, just as the secondary markets pretty open right now?

好吧，你們在本季度還出售了一本交易性 Resi 抵押貸款書。您是否有興趣出售任何其他交易帳簿，以幫助進一步優化資產負債表，就像二級市場目前相當開放一樣？

The short answer is yes, and we've spoken about that. We talked about it, I think, during some of the conversations that we had in the first quarter about optimizing the balance sheet and where there's some transactional real estate portfolios, we need the market.

簡短的回答是肯定的，我們已經討論過這一點。我認為，在第一季我們就優化資產負債表進行的一些對話中，以及在有一些交易性房地產投資組合的地方，我們就需要市場，我們對此進行了討論。

We need rates to come down to certain levels before we could execute on that. In the meantime, we're trying to convert them from transactional into full relationships. And to the extent there's any success with that, then we would just lower the amount that we expect. But offhand, in terms of anything immediate, I don't really see that there's anything.

我們需要將利率降至一定水平才能執行。同時，我們正在努力將它們從交易性轉變為全面的關係。如果這方面取得了成功，那麼我們就會降低我們預期的金額。但就任何直接的事情而言，我並沒有真正看到有什麼。

We've kind of cleaned up a lot of that stuff over the past year. Shortly after the merger last year, last June, July, I think it was around a little over half a billion of transactional loans that we sold out of the mark to Columbia portfolio. And then just as opportunities presented itself with some of these portfolios, we've taken those down as well.

去年我們清理了很多這樣的東西。去年合併後不久，去年六月、七月，我認為我們向哥倫比亞投資組合出售了大約 5 億多一點的交易貸款。然後，當其中一些投資組合出現機會時，我們也會將其撤下。

That's correct.

這是正確的。

Okay. And then maybe just thinking about the loan growth side, obviously, this quarter, there's some declines in non-occupied CRE growth in construction. You've made a bunch of new hires like you talked about, where we're investing in that side of the business. I'm curious, how do you think about the loan pipeline? What's the pulse of your markets? How's demand looking and where are you seeing growth opportunities?

好的。然後也許只是考慮貸款成長方面，顯然，本季度，建築業中未佔用的商業地產成長出現了一些下降。正如您所說，您已經招募了一批新員工，我們正在投資這方面的業務。我很好奇，您如何看待貸款管道？您的市場脈動如何？需求狀況如何？

This is Tory. There are a lot of pieces in there. I'll start with this. The pipeline is very consistent to what it was last quarter. And I think if you can recall last quarter, I talked a little bit about it. Q1 pipeline at the end was pretty consistent with Q4, except in terms of total dollars.

這是托利黨。裡面有很多碎片。我將從這個開始。管道與上季非常一致。我想如果你還記得上個季度，我談過一些相關內容。除了總金額外，第一季末的管道與第四季非常一致。

Just that there was a shift. There was a reduction in the CRE pipeline and a likewise like amount increase in the C&I pipeline, and that has held steady. So we continue to see a slight decrease in the CRE pipeline and kind of a matching number, a dollar amount increase in C&I. So feel good about this continued progress of focus on the C&I side and C&I front. But demand is relatively benign. There's just not a ton of demand for lending opportunity anywhere. There are some pockets of real optimism.

只是有一個轉變。CRE 管道數量有所減少，而 C&I 管道數量也有類似的增加，並且這種情況一直保持穩定。因此，我們繼續看到 CRE 管道略有減少，而 C&I 的金額則相應增加。因此，對 C&I 方面和 C&I 方面的關注持續取得進展感到高興。但需求相對溫和。任何地方都沒有大量的貸款機會需求。有一些真正樂觀的地方。

We recently did a survey with commercial customers throughout the west and done a very significant contrast between middle market customers and their optimism versus small business or smaller commercial customers.

我們最近對整個西方的商業客戶進行了一項調查，並對中型市場客戶及其樂觀程度與小型企業或小型商業客戶進行了非常顯著的對比。

So there's some opportunity in the middle market side, but then less on the lower, the lower middle market and small business. In terms of loan demand, geographically, the west is still strong. I mean, companies are performing well.

因此，中端市場存在一些機會，但中低端市場和小型企業的機會較少。從貸款需求來看，從地理來看，西部地區依然強勁。我的意思是，公司表現良好。

They're still just kind of electing to use cash for some investment needs rather than borrow money. But I feel good about it. The teams are deployed. We're really focused on full relationship banking. If we're going to make loans to people, we want their deposits and we want the opportunity to provide services to create fee income for the bank. So I feel good.

他們仍然只是選擇用現金來滿足某些投資需求，而不是藉錢。但我對此感覺很好。隊伍已部署完畢。我們真正專注於全面的關係銀行業務。如果我們要向人們提供貸款，我們需要他們的存款，我們希望有機會提供服務，為銀行創造費用收入。所以我感覺很好。

I really feel we're probably a low single digit loan growth number through the balance of the year. But I think we're poised. When the opportunity exists for us in terms of more demand, we'll be ready to go and get out there and make sure that we're providing great service for our customers and bringing in new names to the bank.

我真的覺得今年剩下的時間我們的貸款成長可能處於較低的個位數。但我認為我們已做好準備。當我們有更多需求的機會時，我們將做好準備，走出去，確保為客戶提供優質服務，並為銀行引入新名字。

That's helpful. Within C&I, are these, are you seeing more opportunity with deepening relationships at existing customers, or are these new relationships that you're bringing to the bank?

這很有幫助。在 C&I 中，您是否看到了與現有客戶深化關係的更多機會，或者您為銀行帶來的新關係？

I would say both. There's a major emphasis on expanding relationships that we already have. So new products, new services, a lot of fee income business. I talked about the fee income pipeline. I mean, if I look at treasury management, commercial card merchant services, international banking, I mean, those four products, those four solutions right there are big for us. We're seeing a lot of activity.

我會說兩者。我們非常重視擴大我們已有的關係。所以新產品、新服務，業務費收入很多。我談到了費用收入管道。我的意思是，如果我看看資金管理、商業卡商家服務、國際銀行業務，我的意思是，這四種產品、這四種解決方案對我們來說都很重要。我們看到很多活動。

We've had a lot of growth in that part of the fee income pipeline and in just production itself. So feel really good there. New names are a tougher road, but we've had some really good success in some of our de novo markets. But we're also having success everywhere and the whole idea here is that we're going to focus on our customers. We're going to serve them really well, provide products and services for the needs that they have, and then there's an outbound effort to make sure we can bring in a new names to the company.

我們在費用收入管道的這一部分以及製作本身方面都有了很大的成長。所以在那裡感覺真的很好。新名字是一條更艱難的道路，但我們在一些從頭開始市場取得了一些非常好的成功。但我們也在各地取得了成功，整個想法是我們將專注於我們的客戶。我們將真正為他們提供良好的服務，提供滿足他們需求的產品和服務，然後進行對外努力，以確保我們能為公司引入新名稱。

Terrific. Extremely helpful. Thank you.

了不起。非常有幫助。謝謝。

Yes.

是的。

Thank you. One moment for that question. And our next question will be coming from Brandon King of Truist. Your line is open.

謝謝。等一下這個問題。我們的下一個問題將來自 Truist 的布蘭登金 (Brandon King)。您的線路已開通。

So, in regards to credit quality and your targeted reviews, could you just elaborate further on, amount of the loan portfolio that you reviewed? I know you mentioned zero delinquencies, but any other surprises and any other takeaways that would be great to hear.

那麼，關於信貸品質和您的針對性審查，您能否進一步詳細說明您審查的貸款組合的金額？我知道您提到了零拖欠，但如果有任何其他驚喜和任何其他收穫，我們很高興聽到。

No surprises, Brandon. I mean, I think everything is moving how we kind of expected. The higher rate environment, the high duration for longer, you see the impact and some of the smaller customers, HELOC delinquencies are ticking up.

毫不奇怪，布蘭登。我的意思是，我認為一切都按照我們的預期進行。較高的費率環境、較高的持續時間較長、您會看到影響以及一些較小的客戶，HELOC 拖欠率正在上升。

And, our SBA loan portfolio continues to experience higher delinquencies and higher charge offs than we typically would see within the portfolio, though most of those carry some sort of a government guarantee.

而且，我們的 SBA 貸款組合繼續經歷比我們通常在組合中看到的更高的拖欠和更高的沖銷，儘管其中大多數都有某種政府擔保。

So that's a form of mitigant for us. But the biggest kind of success that I would point to, at least for me, is just our commercial real estate portfolio is just performing absolutely fantastic. The teams are laser focused, I would say first on portfolio management and staying ahead of, of any potential repricing and maturities. And second is kind of going out there and looking for additional business.

所以這對我們來說是一種緩解形式。但我要指出的最大的成功，至少對我來說，就是我們的商業房地產投資組合的表現絕對出色。我想說，這些團隊首先專注於投資組合管理，並在任何潛在的重新定價和到期日方面保持領先地位。其次是走出去尋找額外的業務。

And so as we see these repricing opportunities on the horizon, they're already identified. They're not surprised by them. If it looks tight, we're the first ones out talking to them, and we address it ahead of time as opposed to being proactive. We are proactive as opposed to being reactive. Excuse me.

因此，當我們看到這些重新定價機會即將出現時，它們就已經被識別出來了。他們對此並不感到驚訝。如果情況看起來很緊張，我們會是第一個與他們交談的人，我們會提前解決這個問題，而不是主動採取行動。我們是主動的，而不是被動的。打擾一下。

Okay. And in the reviews, did you include any reappraisals or updated LTVs, or is it mainly just kind of looking at what it value was?

好的。在評論中，您是否包括任何重新評估或更新的生命週期價值，或者主要只是看看它的價值是什麼？

Yes, we would not reappraise unless there is an event of maturity or a downgrade into more of a classification type status. But what we do, do is we look at current rent rolls, and we kind of extrapolate from that, a form of evaluation, and we update the value internally, if you will, for that evaluation. So we feel good about the position of the portfolio and the numbers that we throw out there in the investor presentation.'

是的，除非發生成熟事件或降級為更多分類類型狀態，否則我們不會重新評估。但我們所做的是查看目前的租金記錄，並從中推斷出一種評估形式，如果您願意的話，我們會在內部更新該評估的值。因此，我們對投資組合的狀況以及我們在投資者演示中提供的數字感到滿意。

They're as current as we can make them and as accurate as we can make them. Based upon the information that we have we have seen some decreases, obviously, in value, but we've always employed a leverage adverse kind of posture, to underwriting. And so we feel really good about the portfolio and the loan to values in the event that we have to restructure some of these things as we move forward, which we don't see presently.

它們盡可能是最新的，並且盡可能準確。根據我們掌握的信息，我們顯然看到了價值的一些下降，但我們始終採用槓桿不利的姿態來承保。因此，如果我們在前進過程中必須重組其中一些東西（目前我們還沒有看到），我們​​對投資組合和價值貸款感覺非常好。

Okay, very helpful. And lastly from me, just on fee income, particularly core fee income, there was some good strength there. Could you just speak to the momentum in those line items and kind of what's your outlook over the back half of the year and beyond?

好的，非常有幫助。最後我想說的是，就費用收入而言，特別是核心費用收入，那裡有一些不錯的優勢。您能否談談這些項目的勢頭以及您對今年下半年及以後的前景有何看法？

Sure. Hey, Brandon, it's Tory. So those four big categories that I talk about, treasury management, commercial card, merchant services, and international banking, collectively, they're up about 7%, quarter-over-quarter, and then year-over-year, they're up about 14%. The two biggest movers are in terms of percentage or commercial card and international banking and I would categorize it this way. The fee income pipeline continues to grow every single day.

當然。嘿，布蘭登，我是托里。因此，我談論的四大類別，資金管理、商業卡、商業服務和國際銀行業務，總共環比增長了約 7%，然後同比增長了約 7%。兩個最大的推動力是商業卡和國際銀行業務的百分比，我會這樣分類。費用收入管道每天都在持續成長。

I think, I mentioned I'm plus more leads this ability to look at predictive analytics and help our bankers see a product or service that can provide a solution for a customer and gives them kind of a warm lead. We've had a lot of success in leveraging that and going out to our customer base and kind of walking them through what certain products and services will do to support their business and to help them become more efficient, more cost effective, and the pipeline, we're very well received by the bankers and it's even better than that.

我想，我提到過，我有更多的領導能力來研究預測分析，並幫助我們的銀行家看到可以為客戶提供解決方案並給他們帶來溫暖的引導的產品或服務。我們在利用這一點方面取得了巨大的成功，並深入我們的客戶群，引導他們了解某些產品和服務將如何支持他們的業務，並幫助他們變得更有效率、更具成本效益，並且管道，我們受到銀行家的好評，甚至比這更好。

It's really well received by the customer base and they see it as a real positive and a real, very helpful for them. So it's a pretty easy sale and so a lot of growth there. The pipeline is strong and very optimistic about that. I mean, there's no reason why this can't just continue with these kind of growth numbers because the activity just keeps picking up and eventually just kind of, it hits to the bottom line. It's just reoccurring every single day.

它確實受到了客戶群的好評，他們認為這對他們來說是一個真正的積極的、真實的、非常有幫助的。所以這是一次非常容易的銷售，並且有很大的成長。管道很強大並且對此非常樂觀。我的意思是，沒有理由不能繼續保持這樣的成長數字，因為活動不斷增加，最終達到了底線。它只是每天重複發生。

Hey Brandon, this is Chris. I'll add from the kind of the other side of the business that we talked about, the campaign in the spring, we're seeing increased in merchant, the referrals that are now starting to book. And so merchant card revenues up and that's a real positive sign.

嘿布蘭登，這是克里斯。我將從我們談論的業務的另一面補充一點，即春季的活動，我們看到商家的增加，現在開始預訂的推薦。因此，商家卡收入增加，這是一個真正的正面訊號。

And then the other one would be, it's in our wealth management division. Our trust company is doing extremely well. We built a lot of connections with our, the new bankers and others in there and we're getting a lot more referrals internally into that space.

另一個是我們的財富管理部門。我們的信託公司經營得非常好。我們與新銀行家和其他人建立了很多聯繫，並且我們在該領域獲得了更多內部推薦。

So it's good quality growth there. Assets under management are up considerably this year from new business being driven in. And then on our wealth advisor group, we talked back in the fourth quarter that we pivoted our platform over to Raymond James and that transition went through into the second quarter.

因此，那裡的成長品質良好。由於新業務的引入，今年管理的資產大幅增加。然後在我們的財富顧問小組中，我們在第四季度回擊說，我們將我們的平台轉向雷蒙德詹姆斯，並且這種轉變一直持續到第二季​​度。

it's now officially, I would declare it behind us. And those groups are now starting to see the what we had we planned for with a platform that had better technology and an end user experience, we expected to see revenue increasing in that space, and that's exactly what we're starting to see and would expect that to continue throughout this year.

現在已經正式了，我會宣布它在我們身後。這些團體現在開始看到我們計劃透過一個擁有更好技術和最終用戶體驗的平台實現的目標，我們預計該領域的收入會增加，而這正是我們開始看到並會看到的預期這種情況將持續到今年。

Thanks. Really appreciate the detailed response.

謝謝。非常感謝詳細的回覆。

As a reminder, if you would like to ask a question, please press star one one on your telephone. One moment for the next question and our next question is going to come from Jared Shaw of Barclays. Your line is open.

提醒一下，如果您想提問，請在電話上按星號一一。下一個問題請稍等一下，我們的下一個問題將由巴克萊銀行的 Jared Shaw 提出。您的線路已開通。

Hi, good afternoon. Hey maybe just could you go back to the growth in residential non-performers? I think you referenced that coming off of COVID protections. What is that? Just loans that were delinquent that are now switching to non performing. And did that require a provision associated with that or is that separate?

嗨，下午好。嘿，也許你能回到住宅不良者的成長嗎？我想你提到了新冠病毒保護措施的取消。那是什麼？只是那些拖欠的貸款現在轉為不良貸款。這是否需要與之相關的條款，還是單獨的條款？

Hey, Jared, this is Frank. Yes, that's exactly what they were. They were loans that started to struggle sometime during COVID. And we employed modifications, deferrals to them. Our accounting group subsequently removed the flag for those loans and that's what you see in the 90 plus category today.

嘿，賈里德，這是弗蘭克。是的，他們就是這樣。這些貸款在新冠疫情期間開始陷入困境。我們對它們進行了修改和推遲。我們的會計團隊隨後刪除了這些貸款的標記，這就是您今天在 90 歲以上類別中看到的情況。

And Jared, this is Ron. No meaningful provision on that. A good chunk of that also is government guaranteed.

賈里德，這是羅恩。對此沒有任何有意義的規定。其中很大一部分也是由政府擔保的。

Okay. And then looking at mortgage banking, any sort of update on what to expect for that going forward? I guess maybe second quarter you got a little benefit seasonally, but how's the outlook there?

好的。然後看看抵押貸款銀行業務，有什麼關於未來預期的更新嗎？我想也許第二季你會得到一些季節性的好處，但那裡的前景如何？

Yes, Jared, this is Chris.

是的，賈里德，這是克里斯。

Yes, Jared, this is Chris. I think it's really settled into a really nice spot since the transition of it. It's very consistent. Month in, month out, we're seeing most of the volume, obviously, is being driven by purchases at around 69%, 70%. There's still refi activity in there that comes in around 15%, 16% each and every month. And there's a little bit of construction lines to perm that make up the remainder of it.

是的，賈里德，這是克里斯。我認為自從它轉變以來，它確實已經成為一個非常好的地方。這是非常一致的。月復一月，我們發現大部分交易量顯然是由購買推動的，比例約為 69%、70%。那裡仍然有每月 15%、16% 左右的再融資活動。剩下的部分還有一些需要燙髮的結構線。

Most of it, as we had discussed about the strategy and where we were going, is more of a bank, a mortgage company within the bank. Excuse me; a bank apartment of the bank is the mortgage company. 80% of the production is saleable product with the remaining part going into the portfolio. So, yes, I know it's settled in. I think the teams have done a really nice job. We're seeing good internal referral activities. I couldn't be happier with it.

正如我們所討論的策略和發展方向，其中大部分更像是一家銀行，一家銀行內的抵押貸款公司。打擾一下;銀行的某銀行公寓就是房貸公司。 80% 的產量是可銷售產品，其餘部分則進入產品組合。所以，是的，我知道它已經解決了。我認為團隊做得非常好。我們看到了良好的內部推薦活動。我對此感到非常高興。

Okay. And then just finally for me, the $7.7 million incentive comp reversal that you referenced, I guess, what were the triggers that caused that to be reversed?

好的。最後對我來說，您提到的 770 萬美元激勵補償逆轉，我想，導致逆轉的觸發因素是什麼？

Yes, it's part of the analysis that we did in terms of overall, as part of the expense initiative and looking at some of our compensation programs and being able to correlate those to driving shareholder value versus utilizing those as part of reinvesting and growing revenue streams in the future. So we had an accrual out there when we terminated or altered the programs, then we just didn't have a need for the accrual, so we had to reverse it.

是的，這是我們總體分析的一部分，作為費用計劃的一部分，並研究了我們的一些薪酬計劃，並能夠將這些計劃與推動股東價值聯繫起來，而不是利用這些計劃作為再投資和增加收入流的一部分將來。因此，當我們終止或更改計劃時，我們會產生應計費用，然後我們就不再需要應計費用，所以我們必須撤銷它。

Okay. So should we think that a core run rate on sellers and benefits this quarter would be closer to that 152, 153 level?

好的。那麼，我們是否應該認為本季賣家和福利的核心運作率會更接近 152、153 的水平？

Hey, Jared this is Ron. With that $7.7 million, that's be correct. But more importantly, $270.2 million would be a normalized level of expense for Q2, excluding that, because that won't be recurring.

嘿，傑瑞德，這是榮恩。有了這 770 萬美元，這是正確的。但更重要的是，2.702 億美元將是第二季的正常支出水平，不包括這一點，因為這不會經常出現。

Okay. 270.2 for the overall expenses. Got it. Okay, thank you.

好的。總費用270.2。知道了。好的謝謝。

For the second quarter on a normalized basis. Right. Eventually we're going to get into our – and that's just right on the bottom end of our 965 and 985 annualized range that we expect for Q4 less CDI amortization. So the driver there being the reinvestments Clint mentioned earlier.

在正常化的基礎上第二季。正確的。最終我們將進入我們的-，這正好位於我們預計第四季度減去 CDI 攤銷的 965 和 985 年化範圍的底端。因此，驅動因素是克林特之前提到的再投資。

Got it. Thank you.

知道了。謝謝。

Yes, thank you. One moment for the next question. And our next question will be coming from Jeffrey Rulis of D.A. Davidson. Your line is open.

是的，謝謝。請稍等一下，回答下一個問題。我們的下一個問題將來自 D.A. 的 Jeffrey Rulis。戴維森。您的線路已開通。

Thanks. Good afternoon. I wanted to talk about another question on the mortgage side. I thought at one point there was an effort to maybe look at minimizing the volatility within that line item in the fee income side. And I can't remember if that was a legacy unquote thing or maybe shrinking the MSR portfolio. Is there any thought or effort to minimize that ahead or was that something that was in the past?

謝謝。午安.我想談談抵押貸款方面的另一個問題。我認為曾經有人努力考慮盡量減少費用收入方面該行項目的波動性。我不記得這是一個未引用的遺留問題，還是可能縮小了 MSR 的投資組合。是否有任何想法或努力來盡量減少未來的情況，或者這是過去的事情？

Hey, Jeff, this is Ron. Good question. And yes, very much that was, unquote historically, and we have reduced volatility within mortgage related fair value changes. For example, prior to the run up in rates, we didn't have a hedge on the MSR, right so we benefited from that on the way up. Now we got a hedge on the MSR, so that'll help protect no matter which way rates go in the future on that front.

嘿，傑夫，這是羅恩。好問題。是的，這在歷史上是非常重要的，而且我們已經減少了抵押貸款相關公允價值變化的波動性。例如，在利率上漲之前，我們沒有對 MSR 進行對沖，所以我們在利率上漲的過程中從中受益。現在我們對 MSR 進行了對沖，因此無論未來利率走向如何，這都將有助於保護這方面的利益。

So all with an eye towards just reducing, reducing volatility in many ways, in many cases, it's fair value volatility. Just given which way rates move. No plans at this point to significantly reduce the level of MSR, I think you're going to see a pretty steady state. And again, we've got that edge for any potential future rates down environment.

因此，一切都著眼於減少，以多種方式減少波動性，在許多情況下，這是公允價值波動性。只要給出利率變動的方式即可。目前沒有計劃顯著降低 MSR 水平，我認為您會看到一個相當穩定的狀態。再說一次，我們在未來任何潛在的降息環境中都有優勢。

Yes. Just to add to that, I mean, I think beyond just volatility in the mortgage area, really any part of our operation that's volatile, I mean, seasonality is one thing, business cycles are another thing. But if it's truly just something that's volatile and creates noise, we're going to take a hard look at those things.

是的。除此之外，我的意思是，我認為除了抵押貸款領域的波動之外，實際上我們運營中任何波動的部分，我的意思是，季節性是一回事，商業週期是另一回事。但如果它確實只是不穩定並產生噪音的東西，我們將認真審視這些事情。

And anything that has a negative implication on our ability to just be consistent quarter-after-quarter is going to get a lot of scrutiny.

任何對我們保持季度穩定的能力產生負面影響的事情都將受到大量審查。

Got it. Thanks. And Clint, you kind of teased this a little bit, taking a look at some of your newer production in Denver, Phoenix, Salt Lake City. Is there. Have you guys put a dollar figure to that in terms of like year-to-date production that comes from? I just have a vague idea of what those newer locations you've talked about reaching breakeven, but wanted to get a sense for what is the loan production out of those relative to the total company?

知道了。謝謝。克林特，你有點調侃了這一點，看看你在丹佛、鳳凰城、鹽湖城的一些新作品。有沒有。你們有沒有根據今年迄今為止的產量計算出一個美元數字？我只是對你所說的那些較新的地點達到盈虧平衡有一個模糊的想法，但想了解相對於整個公司而言，這些地點的貸款產量是多少？

Yes. I mean, they've done a tremendous job and I'd say on, you know, they're listening to the call that they'll be disappointed if I don't if I don't clarify that there beyond breakeven and bicycle and John, I don't know that we've disclosed anywhere in terms of specific for by geography on we said slippery slope because then we start thinking about all the other elements of our footprint, but some of them. So I don't know. We really can give you any any additional context unless Tory has something.

是的。我的意思是，他們做了出色的工作，我想說，你知道，他們正在聽電話，如果我不澄清，除了盈虧平衡和自行車之外，他們會感到失望約翰，我不知道我們是否在任何地方披露了我們所說的滑坡的具體地理位置，因為我們開始考慮我們足跡的所有其他元素，但其中一些。所以我不知道。我們確實可以為您提供任何額外的背景信息，除非托里有什麼東西。

No, I would just say that other than just balances, it's with a few people. So the expense base is pretty low, but they're very, very talented, hardworking folks, and they've been able to bring new names into the company. They've got strong non-interest bearing and interest bearing deposits.

不，我只是說，除了平衡之外，還有幾個人。因此，費用基礎相當低，但他們都是非常非常有才華、勤奮的人，而且他們能夠為公司帶來新的名字。他們擁有大量的無息和有息存款。

They've got good, strong, almost solely C&I loan balances and really good fee income. So they're kind of carrying the flag of the bank in a great way on relationship banking in all of those new markets and starting from basically scratch, and very proud of the efforts that they've put in, the success that they've had. And it's meaningful numbers.

他們擁有良好、強勁、幾乎完全是 C&I 貸款餘額和非常好的費用收入。因此，他們在所有這些新市場的關係銀行業務上以一種很好的方式扛起了銀行的旗幟，並且基本上從頭開始，並對他們所付出的努力和所取得的成功感到非常自豪。這是有意義的數字。

I mean, relative to the rest of the company, it's a smaller number, but it's a meaningful number. And the ability to be able to go in and start from a dead stop and have success so quickly and to be profitable so quickly is a great thing.

我的意思是，相對於公司的其他部門，這個數字較小，但這是一個有意義的數字。能夠進入並從死胡同開始並如此迅速地取得成功並如此迅速地盈利是一件很棒的事情。

Got it. Lastly, Clint imagine if you look at open bank M&A, if that's even an option, but you might be prioritized. Team lift outs or anything from an acquisition standpoint, is that anything you're looking at?

知道了。最後，克林特想像一下，如果你考慮開放銀行併購，如果這甚至是一個選擇，但你可能會被優先考慮。團隊撤離或從收購角度來看的任何事情，是您所關注的嗎？

Yes. Our top priority is my prepared remarks. I said the company that we set out to create when we announced the merger in 2021, we're running it today. So our top priority is to get the most out of this company and hopefully these last two quarters, and the efforts that you've seen with the execution of the expense initiative, the momentum that Chris and Tori have talked about on the business side that we're starting to prove that out. So I think we still have some work to do.

是的。我們的首要任務是我準備好的發言。我說過，我們在 2021 年宣布合併時打算創建的公司，現在正在運作。因此，我們的首要任務是充分利用這家公司，希望在過去兩個季度，以及您在執行費用計劃方面所看到的努力，克里斯和托里在業務方面談到的勢頭，我們正在開始證明這一點。所以我認為我們還有一些工作要做。

But, we live it every day, so we know the strength of this company and the quality of the people that we have, that are out there every day taking care of our customers. So that's our top priority. I mentioned earlier that we're still attracting talent, and whether it's a team lift out.

但是，我們每天都在生活，所以我們知道這家公司的實力和我們每天都在照顧我們的客戶的員工的品質。所以這是我們的首要任務。我之前提到過，我們仍在吸引人才，以及是否是團隊提升。

Tory mentioned the [indiscernible] team that is one of the new groups that we started in the past nine months or so. If you think about that, I don't know. We probably interviewed 50 plus people, or looked at 50 plus people from that organization and took like, nine. It was so just because somebody's out there doesn't mean that they're going to meet our criteria, how they go to market, how they drive value. But we do. We're always looking at any opportunity that's there.

Tory 提到了[音訊不清楚]團隊，這是我們在過去九個月左右成立的新團隊之一。如果你考慮一下，我不知道。我們可能採訪了 50 多人，或是考察了該組織的 50 多人，然後選出了 9 個人。僅僅因為有人在那裡並不意味著他們會滿足我們的標準，他們如何進入市場，他們如何驅動價值。但我們做到了。我們一直在尋找任何存在的機會。

I would say the lowest priority right now would be open bank M&A. I don't know what's going to happen with the election, and that process. And, we're just now getting the scar tissue healed up from the hell that we were put through, in 2022-2023, so never say never. But I just, I don't think now is the time for that. We've got other priorities that are more pressing and I think will drive more shareholder value over the long run.

我想說，現在最重要的是開放銀行併購。我不知道選舉以及整個過程會發生什麼。而且，我們剛從 2022-2023 年經歷的地獄中恢復疤痕組織，所以永遠不要說永不。但我只是，我認為現在不是這樣做的時候。我們還有其他更緊迫的優先事項，我認為長期來看將帶來更多的股東價值。

Okay. Thank you.

好的。謝謝。

Thank you. And one moment for our next question. Our next question will be coming from Chris McGrady of KW. Your line is open.

謝謝。請稍等一下我們的下一個問題。我們的下一個問題將來自 KW 的克里斯·麥克格雷迪。您的線路已開通。

Oh, great. Thanks, Ron. Just a quick one on the fourth quarter expense range to annualized 965 to 985. Balancing what you did this quarter in the investments, is there any reason for us as analysts to lean on either side of the midpoint?

哦，太好了。謝謝，羅恩。簡單介紹一下第四季的年化費用範圍為 965 至 985。平衡本季的投資情況，我們作為分析師是否有理由偏向中點的兩側？

I think at this point, looking into Q4 midpoint probably makes the most sense.

我認為在這一點上，研究第四季的中點可能是最有意義的。

Okay. That's all I have, thank you.

好的。我只有這些了，謝謝。

You bet, thank you.

你打賭，謝謝。

Thank you. That concludes today's Q&A session. I would like to go ahead and turn the call back over to Jackie for closing remarks. Please go ahead.

謝謝。今天的問答環節到此結束。我想繼續將電話轉回傑基進行結束語。請繼續。

Thank you. Lisa. Thank you for joining this afternoon's call. Please contact me if you have any questions and have a good rest of the day.

謝謝。麗莎。感謝您參加今天下午的電話會議。如果您有任何問題請聯絡我，祝您今天休息愉快。

Thank you for joining today's conference call. You may all disconnect.

感謝您參加今天的電話會議。你們都可以斷開連線。