Central Pacific Financial Corp (CPF) 2023 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to the Central Pacific Financial Corp. First Quarter 2023 Conference Call. (Operator Instructions) This call is being recorded and will be available for replay shortly after its completion on the company's website at www.cpb.bank.

女士們、先生們，下午好。感謝您的耐心等待，歡迎參加 Central Pacific Financial Corp. 2023 年第一季度電話會議。 （操作員說明）本次通話正在錄音，錄音完成後不久即可在公司網站 www.cpb.bank 上重播。

I'd like to turn the call over to Mr. David Morimoto, Senior Executive Vice President and Chief Financial Officer. Please go ahead.

我想將電話轉給高級執行副總裁兼首席財務官 David Morimoto 先生。請繼續。

Thank you all for joining us as we review the financial results for the first quarter of 2023 for Central Pacific Financial Corp. With me this morning are Arnold Martines, President and Chief Executive Officer; and Anna Hu, Executive Vice President and Chief Credit Officer. We have prepared a supplemental slide presentation that provides additional details on our release and is available in the Investor Relations section of our website at cpb.bank.

感謝大家與我們一起回顧中央太平洋金融公司 2023 年第一季度的財務業績。今天早上與我在一起的是總裁兼首席執行官阿諾德·馬丁斯 (Arnold Martines)；胡安娜，執行副總裁兼首席信貸官。我們準備了補充幻燈片演示，提供有關我們發布的更多詳細信息，可在我們網站 cpb.bank 的投資者關係部分獲取。

During the course of today's call, management may make forward-looking statements. While we believe these statements are based on reasonable assumptions, they involve risks that may cause actual results to differ materially from those projected. For a complete discussion of the risks related to our forward-looking statements, please refer to Slide 2 of our presentation.

在今天的電話會議中，管理層可能會做出前瞻性陳述。雖然我們相信這些陳述基於合理的假設，但它們涉及可能導致實際結果與預測存在重大差異的風險。有關我們前瞻性陳述相關風險的完整討論，請參閱我們演示文稿的幻燈片 2。

And now I'll turn the call over to our President and CEO, Arnold Martines.

現在我將把電話轉給我們的總裁兼首席執行官阿諾德·馬丁內斯。

Thank you, David. Aloha, and good morning, everyone. We appreciate your interest in Central Pacific Financial Corp. As we normally do, I'll start with an update on the Hawaii market, then I'll turn it over to the team to provide additional detail and insights on our financial and credit metrics as well as other key updates. The Hawaii tourism industry is performing well with year-to-date visitor arrivals at pre-pandemic levels, indicating the recovery continues.

謝謝你，大衛。阿羅哈，大家早上好。我們感謝您對中央太平洋金融公司的興趣。像往常一樣，我將首先介紹夏威夷市場的最新情況，然後將其交給團隊，以提供有關我們的財務和信用指標的更多詳細信息和見解：以及其他關鍵更新。夏威夷旅遊業表現良好，今年迄今為止的遊客人數達到了大流行前的水平，表明復蘇仍在繼續。

The majority of visitors continue to be from the U.S. Mainland. Japanese visitor arrivals are increasing modestly but remained at only about 1/4 of pre-pandemic levels. We anticipate that as this year progresses, we'll see continued improvement in the international visitor market, which will help to offset an expected slight decline in U.S. arrivals. Hawaii visitor spending is robust, totaling $1.64 billion in February, an increase of 18% compared to the same month in 2019. Hotels in Hawaii continue to perform well with total statewide hotel occupancy in February at 76%, up 5% from a year ago, and an average daily rate of $387, up 10% from a year ago.

大多數遊客仍然來自美國大陸。日本遊客人數略有​​增加，但仍僅約為大流行前水平的 1/4。我們預計，隨著今年的進展，國際遊客市場將持續改善，這將有助於抵消美國遊客預期的小幅下降。夏威夷遊客支出強勁，2 月份總計 16.4 億美元，比 2019 年同月增長 18%。夏威夷酒店繼續表現良好，2 月份全州酒店總入住率為 76%，比去年同期增長 5% ，日均費用為 387 美元，比一年前增長 10%。

Hawaii's employment and housing sectors remain solid and stable. Our statewide seasonally adjusted unemployment rate was at 3.6% in February, which was in line with the national unemployment rate. Year-over-year nonfarm payroll statewide increased by 24,000 jobs or 4%. Labor market conditions overall have normalized, despite certain sectors of our service industry still dealing with a shortage of workers.

夏威夷的就業和住房部門保持穩固和穩定。 2 月份全州季節性調整失業率為 3.6%，與全國失業率一致。全州非農就業崗位同比增加 24,000 個，即 4%。儘管服務業的某些部門仍面臨工人短缺的問題，但勞動力市場狀況總體已正常化。

Housing prices in Hawaii remained very strong with the Oahu median single-family home price back up to $1.1 million, and the median condo sales price setting a new record of $536,000 in March. Home sales volumes improved month-over-month in March, but fell short compared to 2022.

夏威夷的房價仍然非常強勁，瓦胡島單戶住宅中位價回升至 110 萬美元，3 月份公寓銷售中位價創下 536,000 美元的新紀錄。 3 月份房屋銷售量環比有所改善，但與 2022 年相比有所下降。

While we continue to experience some moderation in sales activity and prices, the Hawaii housing market remains very healthy with continued strong demand and low inventory. Overall, while we continue to monitor potential impacts of a slowdown in the U.S. Mainland, the Hawaii market has a healthier outlook compared to the nation as a whole, which gives us optimism for the rest of this year.

雖然銷售活動和價格繼續放緩，但夏威夷房地產市場仍然非常健康，需求持續強勁，庫存較低。總體而言，雖然我們繼續關注美國大陸經濟放緩的潛在影響，但與整個國家相比，夏威夷市場的前景更為健康，這讓我們對今年剩餘時間感到樂觀。

Given the industry events that occurred last month impacting a few large regional banks, I want to reiterate that CPF has strong liquidity, capital and credit. Our deposit portfolio is diversified and long tenured. Our business model is based on longer-term customer relationships that are sticky and less rate sensitive.

鑑於上個月發生的行業事件影響了一些大型區域銀行，我想重申，公積金擁有強大的流動性、資本和信用。我們的存款組合多元化且期限較長。我們的業務模式基於具有粘性且對費率不太敏感的長期客戶關係。

CPB has $6.7 billion in relationship deposits with approximately 50% of our customers having been with CPB for more than 10 years. Additionally, 66% our deposits are FDIC insured or collateralized. And we've experienced a modest net inflow of deposits since March as customers look to diversify the deposit portfolios.

CPB 擁有 67 億美元的關係存款，大約 50% 的客戶已在 CPB 工作超過 10 年。此外，我們 66% 的存款都有 FDIC 保險或抵押。自三月份以來，隨著客戶尋求存款組合多元化，我們經歷了適度的存款淨流入。

As the industry situation continues to settle down, we remain focused on liquidity, while carefully and prudently making asset growth decisions. Going forward, we will remain nimble and continue to focus on our strategic pillars while taking steps to manage any emerging risks.

隨著行業形勢的持續穩定，我們繼續關注流動性，同時謹慎審慎地做出資產增長決策。展望未來，我們將保持靈活性，繼續專注於我們的戰略支柱，同時採取措施管理任何新出現的風險。

Finally, our leadership transition has gone smoothly, and I'm proud of our exceptional team of employees who continue to step up every day to serve our customers and the community.

最後，我們的領導層過渡進展順利，我為我們優秀的員工團隊感到自豪，他們每天都繼續努力為我們的客戶和社區提供服務。

I'll now turn the call over to David Morimoto, our Chief Financial Officer. David?

現在我將把電話轉給我們的首席財務官 David Morimoto。大衛？

Thank you, Arnold. Turning to our earnings results. Net income for the first quarter was $16.2 million or $0.60 per diluted share. Return on average assets was 0.87%. Return on average equity was 13.97%, and our efficiency ratio was 64.58%.

謝謝你，阿諾德。轉向我們的盈利結果。第一季度淨利潤為 1,620 萬美元，或攤薄後每股收益 0.60 美元。平均資產回報率為0.87%。平均股本回報率為13.97%，效率率為64.58%。

Our loan and deposit balances remained relatively stable in the first quarter. On the lending side, we are more selective and thoughtful about the loans we put on balance sheet, ensuring appropriate pricing and structure. We also continue to let the Mainland unsecured consumer loan portfolio runoff as a prudent measure until the national economic outlook improves.

一季度存貸款餘額保持相對穩定。在貸款方面，我們對資產負債表上的貸款更加挑剔和深思熟慮，確保適當的定價和結構。作為審慎措施，我們亦繼續讓內地無抵押消費貸款組合縮減，直至國家經濟前景改善。

Overall, we plan to continue to moderate loan growth in 2023, and our new guidance for the full year loan growth is in the low single-digit percent range. Having said that, we will remain nimble and look to take advantage of opportunities as the operating environment evolves.

總體而言，我們計劃在 2023 年繼續放緩貸款增長，我們對全年貸款增長的新指引處於較低的個位數百分比範圍內。話雖如此，我們將保持靈活性，並隨著運營環境的變化抓住機遇。

We were successful in keeping deposit balances stable in the first quarter, despite some early quarter seasonal outflows where total deposits declined by roughly $100 million in the month of January. Importantly, total deposits increased by a net $111 million during the month of March, with total deposit growth of $150 million since March 9.

儘管季度初出現一些季節性資金外流，1 月份存款總額下降了約 1 億美元，但我們在第一季度成功地保持了存款餘額穩定。重要的是，3 月份存款總額淨增加 1.11 億美元，自 3 月 9 日以來存款總額增長 1.5 億美元。

CPB continues to benefit from a granular and stable core deposit portfolio that was built upon many years of relationships. We continue to execute upon strategies to gain a larger market share of core deposits to further enhance our funding and liquidity position.

CPB 繼續受益於建立在多年關係基礎上的精細且穩定的核心存款組合。我們繼續執行戰略，以獲得更大的核心存款市場份額，以進一步增強我們的融資和流動性狀況。

Net interest income for the first quarter was $54.2 million and decreased by $2.1 million from the prior quarter, primarily due to higher funding costs. The net interest margin was 3.08% in the first quarter, a decline of 9 basis points sequential quarter.

第一季度淨利息收入為 5420 萬美元，比上一季度減少 210 萬美元，主要是由於融資成本增加。一季度淨息差為3.08%，環比下降9個基點。

Excluding nonrecurring interest recoveries in the prior quarter, the net interest margin declined by 6 basis points. Our total cost of deposits increased to 61 basis points in the first quarter. While deposit pricing is starting to put some pressure on our net interest margin, our cycle-to-date interest-bearing deposit repricing beta has been managed to a reasonable 19%.

剔除上一季度的非經常性利息回收，淨息差下降6個基點。第一季度我們的總存款成本增加至 61 個基點。雖然存款定價開始給我們的淨息差帶來一些壓力，但我們的周期至今的計息存款重新定價貝塔值已控制在合理的 19%。

First quarter other operating income was $11 million, which decreased by $0.6 million from the prior quarter, primarily due to the fourth quarter including a greater amount of nonrecurring BOLI benefits. Other operating expenses totaled $42.1 million in the first quarter, an increase of $1.7 million from the prior quarter.

第一季度其他營業收入為 1100 萬美元，比上一季度減少 60 萬美元，主要是由於第四季度包括更多的非經常性 BOLI 福利。第一季度其他運營費用總計 4210 萬美元，比上一季度增加 170 萬美元。

The prior quarter included onetime lower occupancy and advertising costs totaling approximately $1 million. Additionally, the current quarter included higher computer software expenses and FDIC insurance assessment. Our effective tax rate declined to 23.8% in the first quarter as a result of discrete stock compensation adjustments.

上一季度的入住率和廣告成本一度下降，總計約 100 萬美元。此外，本季度的計算機軟件費用和 FDIC 保險評估也有所增加。由於離散股票薪酬調整，我們第一季度的有效稅率下降至 23.8%。

Going forward, we expect the effective tax rate to be in the 24% to 25% range. Our capital position remained strong. And during the first quarter, we repurchased 101,760 shares at a total cost of $2.2 million or an average cost per share of $21.67.

展望未來，我們預計有效稅率將在 24% 至 25% 範圍內。我們的資本狀況依然強勁。第一季度，我們回購了 101,760 股股票，總成本為 220 萬美元，平均每股成本為 21.67 美元。

In mid-March, we temporarily suspended share repurchases due to the evolving operating environment. Finally, our Board of Directors declared a quarterly cash dividend of $0.26 per share, which will be payable on June 15 to shareholders of record on May 31.

3月中旬，由於經營環境的變化，我們暫時停止了股票回購。最後，我們的董事會宣布每股 0.26 美元的季度現金股息，將於 6 月 15 日支付給 5 月 31 日登記在冊的股東。

And now, I'll turn the call over to Anna Hu, our Chief Credit Officer. Anna?

現在，我將把電話轉給我們的首席信貸官 Anna Hu。安娜？

Thank you, David. Our asset quality remained solid in the first quarter with nonperforming assets unchanged at just 7 basis points of total assets and criticized loans decreasing to 1.3% of total loans. Delinquencies also remained low at 3 basis points of total loans. Our loan portfolio is well diversified by loan type and industry sector with low exposure to the U.S. Mainland at 17% of total loans and construction at just 3% of total loans.

謝謝你，大衛。第一季度我們的資產質量保持穩健，不良資產僅佔總資產的 7 個基點，批評貸款佔貸款總額的比例下降至 1.3%。拖欠率也保持在貸款總額的 3 個基點的低水平。我們的貸款組合在貸款類型和行業方面非常多元化，對美國大陸的風險敞口較低，佔總貸款的 17%，而建築業僅佔總貸款的 3%。

The total Mainland consumer portfolio is 8% of total loans and roughly evenly split between auto, home improvement and unsecured loans. Over 75% of the loan portfolio is real estate secured with a weighted average loan-to-value of 63%.

內地消費貸款總額佔貸款總額的8%，汽車貸款、家居裝修貸款和無抵押貸款大致各佔一半。超過 75% 的貸款組合是房地產擔保，加權平均貸款價值比為 63%。

Our commercial real estate portfolio is diversified by sector with low office exposure at 3.5% of total loans. The office portfolio has a weighted average loan-to-value of 55% and 70 weighted average months to maturity. We continue with our conservative underwriting policy, including tight loan-to-value and concentration standards and are being more selective in the loans we make.

我們的商業房地產投資組合按行業多元化，寫字樓風險較低，佔貸款總額的 3.5%。寫字樓投資組合的加權平均貸款價值率為 55%，加權平均到期期限為 70 個月。我們繼續實行保守的承保政策，包括嚴格的貸款價值比和集中度標準，並對我們發放的貸款更加挑剔。

Our net charge-offs were $2.3 million for the first quarter, which equates to 16 basis points annualized as a percent of average loans. The slight increase in net charge-offs came primarily from our Mainland unsecured consumer portfolio due to normal seasoning of the portfolio to loss levels that we had expected and built into the return.

第一季度我們的淨沖銷額為 230 萬美元，相當於平均貸款的年化百分比 16 個基點。淨沖銷的小幅增長主要來自我們的內地無抵押消費投資組合，這是由於投資組合正常老化至我們預期併計入回報的損失水平。

The Mainland unsecured consumer portfolio decreased by $18 million in the first quarter as we let the portfolio run off and did not add significant new purchases. Our allowance for credit losses was $63.1 million or 1.14% of outstanding loans.

由於我們讓投資組合流失並且沒有增加大量新購買，內地無抵押消費投資組合在第一季度減少了 1,800 萬元。我們的信貸損失準備金為 6,310 萬美元，佔未償貸款的 1.14%。

In the first quarter, we recorded a $1.6 million provision for credit losses on loans, primarily due to net charge-offs. Additionally, we recorded a $0.3 million provision for unfunded commitments for a total provision for credit losses of $1.9 million during the quarter.

第一季度，我們記錄了 160 萬美元的貸款信用損失撥備，主要是由於淨沖銷。此外，我們還記錄了 30 萬美元的無資金承諾撥備，本季度信貸損失撥備總額為 190 萬美元。

Overall, the strong risk management culture that we have maintained for many years now positions us to sustain and continue to perform well, despite external challenges that may come.

總體而言，儘管可能出現外部挑戰，我們多年來保持的強大風險管理文化使我們能夠維持並繼續表現良好。

Now I'll turn the call back to Arnold. Arnold?

現在我將把電話轉回給阿諾德。阿諾德？

Thank you, Anna. In summary, Central Pacific continues to have solid liquidity, capital and credit. Our balance sheet is well positioned, and our experienced leadership team will maintain our commitment to our customers and the community as we continue to navigate the current environment and create more shareholder value for our investors.

謝謝你，安娜。綜上所述，中央太平洋仍然擁有穩健的流動性、資本和信用。我們的資產負債表狀況良好，我們經驗豐富的領導團隊將繼續維持對客戶和社區的承諾，繼續應對當前環境並為投資者創造更多股東價值。

Mahalo for your continued support and confidence in our organization. At this time, we will be happy to address any questions you may have. Thank you.

Mahalo 感謝您對我們組織的持續支持和信任。目前，我們很樂意解答您的任何問題。謝謝。

(Operator Instructions) Our first question comes from the line of David Feaster with Raymond James.

（操作員說明）我們的第一個問題來自 David Feaster 和 Raymond James 的線路。

I just wanted to start maybe on some of the deposit flows. Obviously, we saw some of some migration in the quarter. It sounds like you saw pretty good growth throughout March. But like looking at like noninterest-bearing average versus period end, it looks like a lot of the flows kind of happened throughout the quarter. I'm just curious, maybe you could walk through kind of what you're seeing in the deposit portfolio. Have you seen continued migration or some stabilization or even continued growth? And just kind of other trends that you're expecting to see as this all plays out?

我只是想從一些存款流開始。顯然，我們在本季度看到了一些遷移。聽起來您在整個三月都看到了不錯的增長。但就像看無息平均數與期末相比，整個季度似乎發生了很多資金流動。我只是很好奇，也許你可以了解一下你在存款投資組合中看到的情況。您是否看到了持續的移民或某種程度的穩定，甚至持續的增長？隨著這一切的展開，您期望看到什麼其他趨勢？

David, I'm going to let David Morimoto respond to your question.

大衛，我將讓大衛森本回答你的問題。

David, as we touched on in the prepared remarks, on a total deposit basis, we saw roughly $100 million in outflows during the month of January, and that's the normal seasonal outflows coming off of year end. There were additional outflows during February and early March, roughly another $40 million. But importantly, since March 9, the day before the Silicon Valley failure, deposits -- total deposits grew by $150 million. And I think that's the important number here. As far as the mix shift, I think what we're seeing is what you're seeing at other institutions, obviously, there is a mix shift that's occurring out of noninterest-bearing DDA into higher interest-bearing products, and we're accommodating our customers there wherever possible.

大衛，正如我們在準備好的發言中提到的那樣，以總存款為基礎，我們在一月份看到大約 1 億美元的資金外流，這是年底後正常的季節性資金外流。 2 月和 3 月初還有更多資金流出，大約又流出了 4000 萬美元。但重要的是，自 3 月 9 日（矽谷破產的前一天）以來，存款總額增長了 1.5 億美元。我認為這是重要的數字。就混合轉變而言，我認為我們所看到的就是您在其他機構所看到的，顯然，正在發生從無息 DDA 到更高息產品的混合轉變，我們正在盡可能為我們的客戶提供便利。

I think the way we're thinking about the deposit mix shift, David, is if you go back to pre-pandemic, DDA as a percent of deposits at the end of 2019 was 28%. At the end of 3/31, it was 30%. So there's still some room for continued deposit mix shift. That 2% is maybe another $130 million in decline. We're hoping that it's going to be less than that because of the success we had during the pandemic with the PPP loan program, but that's kind of how we're thinking about the mix here.

David，我認為我們考慮存款組合轉變的方式是，如果你回到大流行前，DDA 在 2019 年底佔存款的百分比為 28%。截至3月31日末，該比例為30%。因此，存款結構仍有繼續轉變的空間。這 2% 可能又減少了 1.3 億美元。我們希望它會比這個少，因為我們在大流行期間通過 PPP 貸款計劃取得了成功，但這就是我們在這裡考慮混合的方式。

Okay. So it's really just migration from account versus outflows outside of the bank or going to the bond market or anything like that. It's -- is that a fair characterization?

好的。因此，這實際上只是從賬戶的遷移與銀行外的資金流出或流向債券市場或類似的事情的比較。這是——這是一個公平的描述嗎？

I would say the majority of it is mix shift, right? As we've discussed pretty much throughout this rate environment, we're doing the product segmentation, customer segmentation strategy, providing options for customers that are looking for higher-yielding deposit options. And the strategy is kind of the same strategy that we utilized during the last rising rate environment. I think it was 2015 to 2018, our -- the positive pricing strategies during that cycle were successful, and we expect similar results here.

我想說大部分都是混合轉變，對嗎？正如我們在整個利率環境中所討論的那樣，我們正在進行產品細分、客戶細分策略，為尋求更高收益存款選擇的客戶提供選擇。該策略與我們在上次利率上升環境中使用的策略相同。我認為是 2015 年至 2018 年，我們在該週期中的積極定價策略是成功的，我們預計也會出現類似的結果。

Okay. That's helpful. And maybe could you -- just switching gears to the loan side. Could you just talk about the competitive landscape for deposits on the island? How demand is trending, and maybe the pulse of your clients at this point? And then you talked about pushing higher new loan yields, and that's slowing growth. I guess, could you talk about where new loan yields are at this point? And what segments are you still seeing good risk-adjusted returns that could support kind of that low single-digit growth?

好的。這很有幫助。也許你可以——只是把方向轉向貸款方面。您能談談島內存款的競爭格局嗎？需求趨勢如何，也許您的客戶目前的脈搏如何？然後你談到了推高新貸款收益率，這導致增長放緩。我想，您能談談目前新貸款收益率在哪裡嗎？您仍然看到哪些細分市場具有良好的風險調整回報，可以支持這種較低的個位數增長？

Yes. David, this is Arnold. Maybe I'll start, and then David can talk a little bit about the yields. But we are being more selective in our loan origination decisions, given the current economic environment outlook. And obviously, we're ensuring that loans we make have an appropriate risk-adjusted return, and we continue to be focused on our existing relationships.

是的。大衛，這是阿諾德。也許我會開始，然後大衛可以談談收益率。但考慮到當前的經濟環境前景，我們在貸款發放決策上更加挑剔。顯然，我們正在確保我們發放的貸款具有適當的風險調整回報，並且我們將繼續關注我們現有的關係。

With that said, we do still see loan demand in Hawaii, we see CRE, the CRE space being opportunities for the next few quarters. Construction here is still pretty robust. So we're pretty optimistic about that. And of course, our focus on small business continues to be an area that we see further growth in the future. And I think what you're seeing with our results in the first quarter is really, the reason for that is because of our focus on small business, I mean that market tends to be very relationship-based as well as from a risk-adjusted perspective over time, a good space to be in. So -- but let me ask David to maybe comment on yields.

話雖如此，我們仍然看到夏威夷的貸款需求，我們看到商業地產，商業地產領域是未來幾個季度的機會。這裡的建築還是相當堅固的。所以我們對此非常樂觀。當然，我們對小型企業的關注仍然是我們未來看到進一步增長的領域。我認為你在第一季度的業績中看到的確實是，原因是我們對小型企業的關注，我的意思是市場往往非常基於關係以及風險調整後的市場隨著時間的推移，這是一個很好的空間。那麼，讓我請大衛對收益率發表評論。

Yes. Thanks, Arnold. So David, during the fourth quarter, the weighted average new loan yield was just about 6.25%. So it is increasing along with market interest rates and obviously, deposit rates. And we actually are expecting it to continue to increase, right? We're continuing to look -- as Arnold mentioned, we're continuing to look for appropriate risk-adjusted returns in the current operating environment.

是的。謝謝，阿諾德。 David，第四季度的加權平均新貸款收益率僅為 6.25% 左右。因此，它隨著市場利率和存款利率的增加而增加。我們實際上預計它會繼續增加，對吧？我們將繼續尋找——正如阿諾德所提到的，我們將繼續在當前的運營環境中尋找適當的風險調整回報。

Okay. That's helpful. And then -- and maybe just touching on the asset quality front. I mean more broadly, things are still relatively benign. I'm just curious maybe if you could touch on the broader outlook for credit and how you're tightening standards or anything like that, anything that you're watching closely. But maybe also specifically honing in on the consumer segment, charge-offs were elevated. You talked about some of the seasoning in the portfolio, but we also did see an increase in delinquent consumer loans and taking consumer nonaccruals.

好的。這很有幫助。然後——也許只是觸及資產質量方面。我的意思是更廣泛地說，情況仍然相對溫和。我只是好奇你能否談談更廣泛的信貸前景，以及你如何收緊標准或類似的事情，任何你正在密切關注的事情。但也許是專門針對消費者細分市場，沖銷額有所增加。您談到了投資組合中的一些調味品，但我們也確實看到拖欠消費貸款和消費非應計利息有所增加。

I'm just curious if you could maybe elaborate on some of the asset quality dynamics more broadly. And then, again, specifically honing in on that consumer.

我只是好奇您是否可以更廣泛地詳細說明一些資產質量動態。然後，再次專門針對該消費者。

Yes. So David, this is Arnold. I'll just say that overall, we're very pleased with the continuation of strong asset quality. But let me have Anna respond to some of your specific questions.

是的。大衛，這是阿諾德。我只想說，總的來說，我們對持續保持強勁的資產質量感到非常滿意。但讓我讓安娜回答你的一些具體問題。

So you're right, we are continuing to focus specifically on the consumer market and, to a smaller extent, the small business market where we are seeing a pickup in delinquencies and then, of course, the charge-offs. You do see in first quarter, the elevated charge-offs are really due to the Mainland consumer unsecured portfolio. But I did want to note too there that it is expected. During our underwriting, we did price out and have a certain level of charge-off expectations, and we are well within those expectations.

所以你是對的，我們將繼續專門關註消費者市場，在較小程度上關注小企業市場，我們看到拖欠率上升，當然還有沖銷。你確實看到，第一季度沖銷的增加實際上是由於內地消費者的無抵押投資組合造成的。但我也想指出，這是預料之中的。在我們的承保期間，我們確實定價並有一定程度的沖銷預期，而且我們完全符合這些預期。

It has not exceeded our conservative underwriting standards. And on a go-forward basis, we continue to stick to our conservative underwriting standards, our concentration limits, loan-to-value requirements for commercial real estate, just staying very disciplined. And as Arnold spoke to, being very selective in terms of the loans that we're looking at doing.

它沒有超過我們保守的承保標準。展望未來，我們將繼續堅持保守的承保標準、集中度限制、商業房地產的貸款價值比要求，只是保持嚴格的紀律。正如阿諾德所說，我們在考慮提供的貸款方面非常有選擇性。

Our next question comes from the line of Andrew Liesch with Piper Sandler.

我們的下一個問題來自安德魯·利施 (Andrew Liesch) 和派珀·桑德勒 (Piper Sandler) 的對話。

Just curious here, the size of the securities portfolio going forward. If loan growth is not going to be as strong, is there a plan to -- I think maybe invest more in securities or maybe just also that could be as competitive on the deposit front, given that you may not need that funding for loan growth.

只是好奇未來證券投資組合的規模。如果貸款增長不會那麼強勁，是否有計劃——我認為可能會更多地投資於證券，或者也許只是在存款方面具有競爭力，因為你可能不需要貸款增長所需的資金。

Andrew, let me have David respond to your question.

安德魯，讓我讓大衛回答你的問題。

Yes. Andrew, the investment portfolio is roughly, I think, 18% of total assets, it's likely to stay in the 15% to 20% of asset range. The investment portfolio currently in near term is likely in runoff, largely runoff mode, cash flow of roughly $30 million a quarter. And we'll be using that to fund higher-yielding loan opportunities.

是的。安德魯，我認為投資組合大約佔總資產的 18%，很可能會保持在資產的 15% 到 20% 範圍內。目前的投資組合近期可能處於徑流狀態，主要是徑流模式，每季度現金流量約為 3000 萬美元。我們將用它來為高收益貸款機會提供資金。

Having said that, the investment portfolio strategy will always be nimble and it will be a function of what we're seeing with flows on the deposit and loan side. So to the extent that there's some variances in loan and deposit cash flows, the investment strategy will be the buffer for that.

話雖如此，投資組合策略始終是靈活的，它將取決於我們所看到的存款和貸款方面的流量。因此，如果貸款和存款現金流量存在一些差異，投資策略將起到緩衝作用。

Got it. All right. That's helpful. And then just sort of throwing that all through into the margin core basis down about 6 basis points. Is that -- do you think that compression is going to accelerate this quarter? Or is that kind of the right number to be thinking about?

知道了。好的。這很有幫助。然後將其全部投入到核心利潤率中，下降約 6 個基點。您認為本季度壓縮會加速嗎？或者這個數字是值得考慮的正確數字嗎？

Right now, we're guiding to 2.95% to 3.05% on net interest margin. So we are guiding to a slight continuation of compression on the net interest margin. But I think what's important there is our balance sheet -- as we've consistently stated, our balance sheet is relatively well matched from an interest rate risk standpoint.

目前，我們指導淨息差為2.95%至3.05%。因此，我們預計淨息差將繼續小幅壓縮。但我認為重要的是我們的資產負債表——正如我們一貫指出的那樣，從利率風險的角度來看，我們的資產負債表相對匹配。

And so we don't have the large swings in net interest margin. So we did see some rise in the net interest margin last year, but it wasn't as significant as maybe we saw at some other institutions. So similarly, on the downside, I don't anticipate the same type of magnitude of declines.

因此，我們的淨息差沒有大幅波動。因此，我們去年確實看到淨息差有所上升，但並不像我們在其他一些機構看到的那麼顯著。同樣，在下行方面，我預計不會出現同樣程度的下降。

There are no additional questions waiting at this time. I would like to pass the conference back to Arnold Martines, President and CEO for any -- apologies. We do have a follow-up question from the line of David Feaster with Raymond James.

目前沒有其他問題等待。我想將會議轉交給總裁兼首席執行官阿諾德·馬丁內斯（Arnold Martines），對此表示歉意。我們確實有一個來自大衛·費斯特和雷蒙德·詹姆斯的後續問題。

Right. So I just wanted to maybe ask one more question on the expense side. Obviously, this quarter is a seasonally higher quarter. But just curious, if we exclude some of the seasonal impacts, what do you think is a good core run rate?

正確的。所以我只是想再問一個關於費用方面的問題。顯然，本季度是季節性較高的季度。但只是好奇，如果我們排除一些季節性影響，您認為良好的核心運行率是多少？

And then just how do you think about expense save opportunities just given some of the revenue challenges? I know you guys cut a few branches in the middle of the pandemic, and you've realized a lot of the tech spend just given your build-out. I'm just curious how you think about expenses going forward and, again, the potential expense saving opportunities just given the inflationary and challenging operating environment.

那麼，考慮到一些收入挑戰，您如何看待節省費用的機會？我知道你們在大流行期間砍掉了一些分支，而且你們已經意識到，考慮到你們的擴建，大量的技術支出。我只是很好奇您如何看待未來的費用，以及考慮到通貨膨脹和充滿挑戰的運營環境，潛在的費用節省機會。

Yes. David, it's David. I'll take that question. The other operating expense, total other operating expense quarterly, we're guiding to $41 million to $43 million. But as you said, we're cognizant of the operating environment, and management is taking a hard look at efficiency opportunities. And so we'll see how that plays out in the coming quarters.

是的。大衛，是大衛。我來回答這個問題。其他運營費用，季度其他運營費用總額，我們預計為 4100 萬美元至 4300 萬美元。但正如您所說，我們了解運營環境，管理層正在認真審視提高效率的機會。因此，我們將看看未來幾個季度的情況如何。

And to the extent that revenue challenges persist, we will need to look for efficiency opportunities and hopefully keep the other operating expense on the lower end of that range.

如果收入挑戰持續存在，我們將需要尋找提高效率的機會，並希望將其他運營費用保持在該範圍的較低水平。

Okay. And then it was nice to see the capital build. You touched on it in the prepared remarks about temporarily pausing the buyback program. Are repurchases still on pause? Or maybe as things have seemingly settled down, it seems like the fears -- the real liquidity fears, especially for you all are alleviated. Are you interested in repurchases again? And just overall thoughts on capital return at this point.

好的。然後很高興看到首都建設。您在準備好的關於暫時暫停回購計劃的評論中提到了這一點。回購仍處於暫停狀態嗎？或者，也許隨著事情似乎已經穩定下來，恐懼——真正的流動性恐懼，尤其是對你們所有人來說，似乎都得到了緩解。有興趣再次回購嗎？目前只是對資本回報的總體想法。

Yes, David. Obviously, we're the ultimate insider and the stock, like all banks, they're cheap, they're relatively cheap right now. But the buyback is on pause through our earnings blackout, and then management will evaluate the operating environment, the situation at the time and we'll make the appropriate decisions. But it's a challenging operating environment.

是的，大衛。顯然，我們是最終的內部人士，股票就像所有銀行一樣，很便宜，現在相對便宜。但由於我們的盈利中斷，回購暫停，然後管理層將評估運營環境、當時的情況，我們將做出適當的決定。但這是一個充滿挑戰的運營環境。

And I think balance sheet strength and stability is paramount right now. And what we're going to do is we're going to ensure that our balance sheet is strong, such that we're able to assist the community and our customers through what may be a difficult operating environment. And once we're comfortable that we have the balance sheet strength that we need, then we'll take a look at our options for capital deployment beyond the quarterly cash dividend.

我認為資產負債表的強度和穩定性現在至關重要。我們要做的是確保我們的資產負債表強勁，以便我們能夠幫助社區和客戶度過可能困難的運營環境。一旦我們確信我們擁有所需的資產負債表實力，那麼我們將考慮除季度現金股息之外的資本部署選擇。

Okay. And then maybe just the last one, I just wanted to get a quick update on the Swell initiative. Last time we talked, you were still planning on expanding the program. Not a huge contribution, obviously, in the short run, but just could you give us an update on that? And any changes to the thought process with that just given the broader environment?

好的。也許只是最後一個，我只是想快速了解 Swell 計劃的最新情況。上次我們談話時，您仍在計劃擴大該計劃。顯然，從短期來看，這並不是一個巨大的貢獻，但您能給我們介紹一下最新情況嗎？考慮到更廣闊的環境，思維過程有什麼變化嗎？

Sure, David. Swell continues to work on its business model. So it's actually out in the public today. It is trying different strategies, different marketing strategies to generate customer acquisition. And as we've discussed previously, it's profitable customer acquisition. But it hasn't found its sweet spot yet.

當然，大衛。 Swell 繼續致力於其商業模式。所以今天它實際上已經公開了。它正在嘗試不同的策略、不同的營銷策略來吸引客戶。正如我們之前討論的，這是有利可圖的客戶獲取。但它還沒有找到它的最佳點。

So it's still immaterial to our results, and we're continuing to work with them on their go-forward strategy. And we're hopeful that at some point, the environment will be conducive and they'll find their sweet spot such that we can grow Swell and CPB as the sponsor bank can grow.

因此，這對我們的結果仍然不重要，我們將繼續與他們合作制定他們的前進戰略。我們希望在某個時候，環境將是有利的，他們會找到自己的最佳位置，這樣我們就可以隨著贊助銀行的發展而發展 Swell 和 CPB。

But until that, until we find those things, it's going to be very slow going because of the operating environment. And I think that's the prudent thing to do.

但在那之前，在我們找到這些東西之前，由於操作環境的原因，進展將會非常緩慢。我認為這是明智之舉。

Okay. Yes, that makes sense. And then you touched on the BOLI side, and some of the movements there obviously is fees were another good quarter. Just curious how you think about kind of a core fee income run rate.

好的。是的，這是有道理的。然後你談到了玻利方面，那裡的一些變動顯然是費用的另一個好季度。只是好奇您如何看待核心費用收入運行率。

Yes. Total other operating income is going to be roughly $11 million a quarter. And then more specifically on the BOLI line, that line has just been volatile because of the deferred comp programs. We have corporate-owned life insurance that acts as a hedge for our director-deferred comp and employee-deferred comp programs.

是的。每季度其他營業收入總額約為 1100 萬美元。更具體地說，在 BOLI 線上，由於補償計劃推遲，該線一直不穩定。我們擁有企業擁有的人壽保險，可以作為董事遞延薪酬和員工遞延薪酬計劃的對沖。

So that piece, the COLI piece goes up and down with the equity markets. But I would say the core BOLI quarterly number is probably about $800,000 and it'll deviate from that based on equity market performance and potential debt benefits.

因此，中國海外發展的這一部分隨著股市的波動而上下波動。但我想說，BOLI 的核心季度數字可能約為 80 萬美元，並且會根據股市表現和潛在債務收益而偏離該數字。

That concludes the question-and-answer session. I would now like to pass the conference back to Arnold Martines, President and CEO, for any closing remarks.

問答環節到此結束。現在，我想將會議轉交給總裁兼首席執行官阿諾德·馬丁斯 (Arnold Martines)，讓其發表閉幕詞。

Thank you very much for participating in our earnings call for the first quarter of 2023. We look forward to future opportunities to update you on our progress.

非常感謝您參加我們 2023 年第一季度的財報電話會議。我們期待未來有機會向您介紹我們的最新進展。

That concludes the Central Pacific Financial Corp. First Quarter 2023 Conference Call. I hope you all enjoy the rest of your day. You may now disconnect your lines.

Central Pacific Financial Corp. 2023 年第一季度電話會議到此結束。我希望你們都度過愉快的一天。您現在可以斷開線路。