Central Pacific Financial Corp (CPF) 2024 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to the Central Pacific Financial Corp. second quarter 2024 conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. 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，午安。感謝您的耐心等待並歡迎參加 Central Pacific Financial Corp. 2024 年第二季電話會議。在今天的演示過程中，各方都將處於僅聽模式。演講結束後，會議將開放提問。該電話會議正在錄音，完成後不久將在公司網站 www.cpb.bank 上重播。

I'd like to turn the call over to Ms. Dayna Matsumoto, Group SVP, Director Finance and Accounting. Please go ahead.

我想將電話轉給集團高級副總裁兼財務和會計總監 Dayna Matsumoto 女士。請繼續。

Thank you, Jessica and thank you all for joining us as we review the financial results of the second quarter of 2024 for Central Pacific Financial Corp. With me this morning are Arnold Martines, who was recently appointed Chairman of our Board in addition to his role as President and Chief Executive Officer; David Morimoto, Senior Executive Vice President and Chief Financial Officer; and Anna Hu, Executive Vice President and Chief Credit Officer.

謝謝傑西卡，感謝大家與我們一起回顧中央太平洋金融公司2024 年第二季度的財務業績。其職務擔任總裁兼執行長； David Morimoto，資深執行副總裁兼財務長；胡安娜，執行副總裁兼首席信貸官。

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.

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，管理階層可能會做出前瞻性陳述。雖然我們相信這些陳述是基於合理的假設，但它們涉及可能導致實際結果與預測有重大差異的風險。有關與我們的前瞻性陳述相關的風險的完整討論，請參閱我們簡報的幻燈片 2。

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

現在我將把電話轉給我們的董事長、總裁兼執行長阿諾德·馬丁內斯。

Thank you, Dayna and hello, everyone. We appreciate your interest in Central Pacific Financial Corp. and we are pleased to share our latest updates and results with you.

謝謝戴娜，大家好。我們感謝您對中央太平洋金融公司的興趣，我們很高興與您分享我們的最新動態和結果。

We had a strong second quarter highlighted by NIM expansion, core deposit growth and improving net charge-offs. With half the year behind us, I am pleased with the results and have a positive outlook for the rest of the year.

我們第二季表現強勁，主要表現在淨利差擴張、核心存款成長和淨沖銷改善。半年過去了，我對結果感到滿意，並對今年剩餘時間抱持正面的展望。

Our team is successfully navigating the challenges of the current economic environment. While this continues to impact loan growth and demand we are seeing positive trends developing. I'm also proud of the recognition we recently received by Forbes as one of America's Best Banks and Best In-State Bank for Hawaii in 2024.

我們的團隊正在成功應對當前經濟環境的挑戰。雖然這繼續影響貸款成長和需求，但我們看到積極的趨勢正在發展。我還為我們最近被《福布斯》評為 2024 年美國最佳銀行和夏威夷最佳州內銀行之一而感到自豪。

With that said I'd like to provide an update on the Hawaii market before turning it over to my team to cover the quarter's results in more detail. Hawaii overall is experiencing modest economic growth due to higher inflation and continued pressures on tourism particularly the Japanese market where headwinds and exchange rate persists.

話雖如此，我想先提供夏威夷市場的最新情況，然後再將其交給我的團隊，以更詳細地介紹本季度的業績。由於通膨上升和旅遊業持續面臨壓力，尤其是逆風和匯率持續存在的日本市場，夏威夷整體經濟成長緩慢。

Conversely construction and defense spending in Hawaii are at all-time highs and helping to offset the impacts we are seeing from other sectors of the economy. In the month of June, total statewide visitor arrivals were down 1.9% from the prior year and were about 92% of pre-pandemic levels in 2019.

相反，夏威夷的建築和國防支出處於歷史最高水平，有助於抵消我們看到的其他經濟部門的影響。6 月份，全州遊客總入境人數比去年下降 1.9%，約 2019 年疫情前水準的 92%。

Visitors from Japan were up 28% from a year ago yet remained about 50% of the same month in 2019. For the island of Maui, total visitors in June were about 78% of the prior year as recovery following the wildfires continues at a slow, but steady pace.

來自日本的遊客年增 28%，但 2019 年同月遊客數量仍維持在 50% 左右。對於毛伊島來說，6 月的遊客總數約為去年同期的 78%，因為野火後的恢復仍在緩慢但穩定地進行。

Total statewide hotel occupancy in June was 76% down 1.2% from a year ago with an average daily rate of $373 down 3.7% from a year ago. Hawaii statewide seasonally adjusted unemployment rate was 2.9% in June and continues to outperform the national unemployment rate of 4.1%.

6 月全州飯店總入住率為 76%，較去年同期下降 1.2%，每日平均房價為 373 美元，較去年同期下降 3.7%。6 月夏威夷全州經季節性調整的失業率為 2.9%，持續跑贏全國 4.1% 的失業率。

Hawaii real estate values remain very strong. The Oahu median single-family home price was $1.12 million and the median condo sales price was $530,000 in June reflecting year-over-year increases of 6.7% and 3.9% respectively.

夏威夷房地產價值仍然非常強勁。6 月份，歐胡島單戶住宅中位數為 112 萬美元，公寓銷售中位數為 53 萬美元，年比分別成長 6.7% 和 3.9%。

Home sales volumes in the first half of the year were up 6.7% for single-family homes but down 5.8% for condos compared to the prior year. Homes continue to move quickly with a median of 15 days on the market. Overall, we remain optimistic about Hawaii's economic outlook, and believe the state economy will continue to grow modestly and demonstrate resiliency.

與去年同期相比，今年上半年單戶住宅的銷售量成長了 6.7%，但公寓的銷售量下降了 5.8%。房屋持續快速流通，上市天數中位數為 15 天。總體而言，我們對夏威夷的經濟前景保持樂觀，並相信該州經濟將繼續溫和成長並表現出彈性。

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財務長 David Morimoto。大衛？

Thank you, Arnold. Turning to our earnings results. Net income for the second quarter was $15.8 million or $0.58 per diluted share. Return on average assets was 0.86%, return on average equity was 12.42% and our efficiency ratio was 64.26%.

謝謝你，阿諾德。轉向我們的獲利結果。第二季淨利為 1,580 萬美元，或攤薄後每股收益 0.58 美元。平均資產報酬率為0.86%，平均股本報酬率為12.42%，效率率為64.26%。

In the second quarter, our total loan portfolio decreased by $17.8 million or 0.3% sequential quarter, which included a $19.2 million decrease in Mainland consumer loans. Sequential quarter growth in our commercial real estate and C&I portfolios was offset by runoff in consumer and residential mortgage loans.

第二季度，我們的總貸款組合減少 1,780 萬元，較上季減少 0.3%，其中內地消費貸款減少 1,920 萬元。我們的商業房地產和工商業投資組合的連續季度成長被消費者和住宅抵押貸款的流失所抵消。

The pace of the net decline in total loans is slowing and we expect modest loan growth in the second half of the year. Our total deposit portfolio decreased by $36.4 million or 0.5% sequential quarter which included a $41.6 million decrease in high-cost government time deposits. Core deposits grew during the quarter by $16.7 million.

貸款總額淨下降速度正在放緩，我們預計下半年貸款將溫和成長。我們的總存款組合比上一季減少了 3,640 萬美元，即 0.5%，其中高成本政府定期存款減少了 4,160 萬美元。本季核心存款增加了 1,670 萬美元。

Net interest income for the second quarter was $51.9 million, an increase by $1.7 million from the prior quarter. The net interest margin was 2.97% in the second quarter up 14 basis points sequential quarter. Net interest income and NIM expansion was driven by the increase in yields on our investment securities and loan portfolios while our cost of funds remain relatively stable.

第二季淨利息收入為5,190萬美元，較上一季增加170萬美元。第二季淨利差為2.97%，較上季上升14個基點。淨利息收入和淨利差擴張是由我們的投資證券和貸款組合的收益率上升所推動的，而我們的資金成本保持相對穩定。

Interest income on investment securities during the quarter included $0.9 million from our swap on $115 million of municipal securities that started on March 31 of this year and has a five-year term. Our total cost of deposits remained relatively flat at 1.33% and our cycle-to-date total deposit repricing beta also remained at 24%.

本季投資證券的利息收入包括 90 萬美元來自我們從今年 3 月 31 日開始、為期五年的 1.15 億美元市政證券互換。我們的總存款成本相對穩定，為 1.33%，週期至今的總存款重新定價貝塔值也維持在 24%。

Second quarter, other operating income increased to $12.1 million due to stronger mortgage banking and investment services income. Other operating expense totaled $41.2 million an increase from $40.6 million in the prior quarter primarily due to higher salaries and benefits expense.

由於抵押貸款銀行和投資服務收入強勁，第二季其他營業收入增至 1,210 萬美元。其他營運費用總計 4,120 萬美元，較上一季的 4,060 萬美元有所增加，主要是由於工資和福利費用增加。

Our effective tax rate was 23.4% and we believe it will continue to remain in the 23% to 25% range. We did not repurchase any shares in the second quarter. Our Board of Directors declared a quarterly cash dividend of $0.26 per share, which will be payable on September 16 to shareholders of record on August 30.

我們的有效稅率為 23.4%，我們相信它將繼續保持在 23% 至 25% 的範圍內。第二季我們沒有回購任何股票。我們的董事會宣布每股 0.26 美元的季度現金股息，將於 9 月 16 日支付給 8 月 30 日登記在冊的股東。

I'll now 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 strong in the second quarter and our lending and credit risk strategy continues to be based on diversification consistent underwriting standards, strong collateral and a focus on stable segments and industries that we have solid expertise in.

謝謝你，大衛。我們的資產品質在第二季度保持強勁，我們的貸款和信用風險策略繼續基於多元化、一致的承保標準、強大的抵押品以及對我們擁有紮實專業知識的穩定細分市場和行業的關注。

Nearly 80% of the loan portfolio is real estate secured with a weighted average loan-to-value of 63%. Our commercial real estate office and retail exposure remains low at 3.2% and 5.5% of total loans respectively.

近 80% 的貸款組合是房地產擔保，加權平均貸款價值比為 63%。我們的商業房地產辦公室和零售風險敞口仍然較低，分別佔總貸款的 3.2% 和 5.5%。

The office portfolio has a weighted average loan-to-value of 55% and 69 weighted average months to maturity. The retail portfolio has a weighted average loan-to-value of 65% and 65 weighted average months to maturity.

辦公室投資組合的加權平均貸款價值比為 55%，加權平均到期期限為 69 個月。零售投資組合的加權平均貸款價值比為 65%，加權平均到期期限為 65 個月。

All of our Maui related loan deferrals have returned to regular payment status and we are not anticipating any significant issues to cause us concern regarding our Maui portfolio.

我們所有與毛伊島相關的貸款延期已恢復正常付款狀態，我們預計不會出現任何重大問題引起我們對毛伊島投資組合的擔憂。

Non-performing assets were $10.3 million or 0.14% of total assets, which was relatively flat from the prior quarter. Criticized loans were $35.3 million or 0.66% of total loans, a slight increase from the prior quarter, but remains at historically low levels.

不良資產為 1,030 萬美元，佔總資產的 0.14%，與上季持平。受到批評的貸款為 3,530 萬美元，佔貸款總額的 0.66%，較上一季略有增加，但仍處於歷史低點。

Total net charge-offs were $3.8 million for the second quarter or 0.28% of average loans on an annualized basis. This reflects a six basis points decrease from the previous quarter. Our allowance for credit losses was $62.2 million or 1.16% of outstanding loans. In the second quarter, our provision for credit losses on loans declined to $2.4 million due to a decline in net charge-offs.

第二季淨沖銷總額為 380 萬美元，佔年化平均貸款的 0.28%。這反映出比上一季下降了六個基點。我們的信貸損失準備金為 6,220 萬美元，佔未償貸款的 1.16%。第二季度，由於淨沖銷減少，我們的貸款信用損失準備金下降至 240 萬美元。

Additionally, we recorded a $0.2 million credit to the provision for unfunded commitments for a total provision for credit losses of $2.2 million during the quarter. Overall, our credit quality remains strong. And we continue to monitor the economic environment closely.

此外，我們也記錄了 20 萬美元的信貸損失準備金，本季信貸損失準備金總額為 220 萬美元。整體而言，我們的信用品質依然強勁。我們將繼續密切監控經濟環境。

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, we had a strong second quarter. Despite market uncertainties that persist, we have a positive outlook for the rest of the year and we continue to focus on executing on our core strategies while remaining nimble.

謝謝你，安娜。總而言之，我們的第二季表現強勁。儘管市場不確定性依然存在，但我們對今年剩餘時間的前景持樂觀態度，我們將繼續專注於執行我們的核心策略，同時保持靈活性。

I want to thank you 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.

我要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。

Thank you so much. (Operator Instructions)

太感謝了。（操作員說明）

David Feaster, Raymond James.

大衛‧菲斯特，雷蒙德‧詹姆斯。

Hi. Good morning, everybody.

你好。大家早安。

Good morning, David.

早安，大衛。

I wanted to a follow-up on kind of the Maui side. We've got the anniversary of the wildfires coming up. I'm curious, maybe where we are just from your standpoint in terms of the rebuild in the local economy?

我想對毛伊島方面進行跟進。野火週年紀念日即將到來。我很好奇，也許從您的角度來看，我們在當地經濟重建方面處於什麼位置？

It's great to hear that, we're not expecting any issues as loans come off deferral. That's extremely encouraging. But I'm just curious, what are you seeing there and just your pulse of the local economy in that market?

很高興聽到這個消息，我們預計貸款延期後不會有任何問題。這非常令人鼓舞。但我只是很好奇，您在那裡看到了什麼以及對該市場當地經濟的脈動？

Yeah. So David, this is Arnold. As I mentioned earlier, the visitor arrivals the visitor accounts are still at about 78%. But it is improving in a steady way. I think that the progress with regard to the things that have to be determined to move forward in a more deliberate way is coming together.

是的。大衛，這是阿諾。正如我之前提到的，遊客人數仍佔遊客總數的78%左右。但它正在穩步改善。我認為，必須確定以更審慎的方式向前推進的事情正在取得進展。

We're starting to see some homes being rebuilt and I'm pretty optimistic that the community is coming together. And while there's, still a lot of emotions and obviously a lot of folks were impacted. People are starting to come together and we're optimistic that we'll start to see forward movement in the months and within the year ahead.

我們開始看到一些房屋正在重建，我對社區團結起來非常樂觀。雖然存在，但仍然有很多情緒，顯然很多人都受到了影響。人們開始聚集在一起，我們樂觀地認為，我們將開始看到未來幾個月和一年內的進展。

That's great. And then, maybe just touching on the deposit side, I mean the deposit cost control the core deposit growth has been great. I mean it's really impressive to just see one basis point of deposit cost growth.

那太棒了。然後，也許只是觸及存款方面，我的意思是存款成本控制核心存款成長非常好。我的意思是，光是看到存款成本成長一個基點就令人印象深刻。

Curious, how do you think about deposits and the deposit growth initiatives? Where are you having success? And what's driving that? And just where are you seeing the cost of new deposits?

好奇，您如何看待存款和存款成長措施？你在哪裡取得了成功？是什麼推動了這一點？您在哪裡看到新存款的成本？

I mean, basically trying to figure out, do you think funding costs can stabilize here and continue to grow? Are we more focused on optimizing the base, just given the slower loan growth profile that we just talked about?

我的意思是，基本上想弄清楚，您認為融資成本可以穩定下來並繼續成長嗎？考慮到我們剛才談到的貸款成長放緩，我們是否更注重優化基礎？

So David, I'll start, and then I'll turn it over to David Morimoto. Our team has done a really good job with regard to just focusing on our customers, focusing on our core business.

大衛，我開始，然後我會把它交給大衛森本。我們的團隊在專注於客戶、專注於我們的核心業務方面做得非常好。

Small business market has been a real strength of ours. And we will continue to see because of the efforts of our employees just a steady growth of new customers and obviously what follows is deposit balances. But let me ask David to speak with regard to cost.

小型企業市場一直是我們的真正優勢。由於我們員工的努力，我們將繼續看到新客戶的穩定成長，顯然隨之而來的是存款餘額。但讓我請大衛談談成本問題。

Hey David, yes. I think like you mentioned, we are very pleased with the second quarter results. The team did a great job of staying close to their customers and building new relationships. So we did see stabilization, especially in noninterest-bearing DDA. The noninterest-bearing DDA declined by $1 million sequential quarter. And obviously, we're hoping that we continue to have that great success and then we start growing core deposits going forward.

嘿大衛，是的。我認為就像您提到的，我們對第二季的業績非常滿意。團隊在與客戶保持密切聯繫並建立新關係方面做得非常出色。所以我們確實看到了穩定，特別是在無息 DDA 方面。無息 DDA 比上一季下降 100 萬美元。顯然，我們希望我們繼續取得巨大的成功，然後我們開始增加核心存款。

And I guess kind of thinking through that, would you just trying to think of the kind of the size of the balance sheet, right? I mean to the extent that we do get core deposit growth, would you expect to continue to optimize the funding base and maybe let some of the CDs roll off? Or would you expect and basically kind of have a stable kind of asset base and improving profitability? Or would you expect the balance sheet to continue to grow? Just kind of curious, how you think about that because that ultimately plays into the margin question as well.

我想，仔細思考一下，您會不會想一下資產負債表的規模，對吧？我的意思是，如果我們確實實現了核心存款成長，您是否期望繼續優化融資基礎，並可能讓一些存款證滾存？或者您期望並基本上擁有穩定的資產基礎並提高盈利能力？或者您預期資產負債表會繼續成長嗎？只是有點好奇，你是如何看待這個問題的，因為這最終也會影響利潤問題。

Yes. Sure, David. I think the keys to the balance sheet size are core deposit growth and good risk reward loan opportunities. I think we're getting to the point where things are lining up. The stars are aligning where we could see positive progress on both of those fronts. And if we do, that will allow us to grow the balance sheet footings. I think we've done a lot on the optimization of the funding base. And I think if we start seeing a good better risk reward on the loan opportunity side, we could see the balance sheet grow. It's not going to grow by a lot, but there would be opportunities to grow it.

是的。當然，大衛。我認為資產負債表規模的關鍵是核心存款成長和良好的風險回報貸款機會。我認為我們已經到了事情順利進行的地步。一切順利，我們可以在這兩個方面看到積極的進展。如果我們這樣做，這將使我們能夠擴大資產負債表的基礎。我認為我們在優化資金基礎方面做了很多工作。我認為，如果我們開始在貸款機會方面看到更好的風險回報，我們就可以看到資產負債表成長。它不會成長很多，但會有成長的機會。

Got it. That’s helpful. Thanks everybody.

知道了。這很有幫助。謝謝大家。

Andrew Liesch, Piper Sandler.

安德魯·利施，派珀·桑德勒。

Thanks. Good morning everyone. Just a question on the loan growth here. Good C&I on the Mainland. I'm curious what was behind that?

謝謝。大家早安。這裡只是關於貸款成長的問題。內地工商業不錯。我很好奇這背後是什麼？

Anna, you want to answer the question?

安娜，你想回答這個問題嗎？

Sure. Hi Andrew, this is Anna. So we primarily saw the growth in our SNC portfolio. We have the opportunity to participate in a new name as well as top off on a couple of existing SNC credits that we were already in. So that's primarily what drove our second quarter growth on the C&I book on the Mainland.

當然。嗨安德魯，我是安娜。因此，我們主要看到了 SNC 產品組合的成長。我們有機會參與一個新名稱，並補充我們已經參與的幾個現有 SNC 積分。因此，這就是推動我們第二季內地工商業書籍成長的主要原因。

Got it. Any other opportunities for that to continue or do you think the portfolio maybe stabilizes from here?

知道了。還有其他繼續這種情況的機會嗎？

We continue to monitor and look at opportunities and would certainly say that as it presents itself, we would be interested.

我們將繼續監控和尋找機會，並且肯定會說，當它出現時，我們會感興趣。

Got you, very helpful. And then, I guess similarly the commercial real estate in Hawaii, what was the driver behind that? And how is that pipeline shaping up here for the rest of the year?

懂你了，非常有幫助。然後，我想夏威夷的商業房地產也是如此，背後的驅動因素是什麼？今年剩下的時間裡，這條管道的情況如何？

Hi Andrew, this is Anna again. For commercial real estate in Hawaii, we had a couple of commercial real estate transactions that we closed on during the second quarter. And I would say from a pipeline standpoint, we have a good pipeline that we're looking at working through for the remainder of the year.

嗨安德魯，我又是安娜。對於夏威夷的商業房地產，我們在第二季完成了幾筆商業房地產交易。我想說，從管道的角度來看，我們有一個良好的管道，我們正在考慮在今年剩餘時間內完成工作。

Great. Any expected payoffs on any of the portfolios that might continue the pace of growth? Perhaps on the construction side that might be a little higher from a payoff perspective. Just kind of forecast what the net pace might be here.

偉大的。任何可能繼續成長步伐的投資組合有任何預期回報嗎？也許從回報的角度來看，施工方面可能會更高一些。只是預測一下這裡的淨速度。

Yes. We are expecting a few payoffs here and there in the construction book as well as the commercial real estate, but we will be looking to try to fill that up and replace.

是的。我們預計在建築和商業房地產方面會得到一些回報，但我們將尋求嘗試填補和替換。

Got you. All right. Very helpful. And then David on the margin obviously some good expansion here as we've heard some good success on the core deposit front. I wouldn't expect to see the margin rise this much again. But I mean, how are you thinking about the margin here going into the second half of the year, especially now that the swap is benefiting it?

明白你了。好的。非常有幫助。然後大衛顯然在這裡進行了一些良好的擴張，因為我們已經聽說核心存款方面取得了一些良好的成功。我沒想到利潤率會再上漲這麼多。但我的意思是，您如何看待下半年的利潤率，尤其是現在掉期對它有利？

Yes sure. Andrew. I think the way to look at the net interest margin forecast is, if you break down the 14 basis points sequential quarter increase that we saw in the second quarter, roughly six basis points of that was organic. That was a result of interest earning asset, repricing, outpacing interest-bearing liabilities. So 6 basis points organic, 5 basis points was related to the interest rate swap and 3 basis points was related to reduction of excess balance sheet liquidity.

是的，當然。安德魯.我認為看待淨利差預測的方法是，如果你將我們在第二季度看到的 14 個基點的環比增長分解，其中大約有 6 個基點是有機的。這是生息資產重新定價超過付息負債的結果。因此，6個基點是有機的，5個基點與利率互換有關，3個基點與減少資產負債表過剩流動性有關。

As I said, the reduction of balance sheet liquidity is kind of nearing the end and then the swap is just going to be in our net interest margin going forward. It's really that 6 basis points and how much we can continue that going forward. So right now, the net interest margin guidance for the next couple of quarters is 3% to 3.10%.

正如我所說，資產負債表流動性的減少已接近尾聲，然後掉期將進入我們未來的淨利差。這實際上是 6 個基點以及我們可以在多大程度上繼續前進。因此，目前未來幾季的淨利差指引為 3% 至 3.10%。

Got you. Does that incorporate any rate cuts? And I guess, how with some of the movements and some of the shifting that you've done over the last couple of years, how do you think the margin will react to a rate cut?

明白你了。這是否包含任何降息？我想，透過過去幾年你們所做的一些變動和一些轉變，你們認為利潤率會對降息有何反應？

Yes. So, our forecast for the remainder of this year incorporates to 25 basis points cuts. 25 basis point cuts in September and December. So that is incorporated into our 3% to 3.10% guidance. As we've mentioned before, our net interest margin -- our interest rate risk is relatively well matched. The balance sheet is relatively well matched. We do believe that there would be some opportunity for benefit from Fed interest rate cuts for the back half of the year and into 2025.

是的。因此，我們對今年剩餘時間的預測包括降息 25 個基點。 9月和12月降息25個基點。因此，這已納入我們 3% 至 3.10% 的指導中。正如我們之前提到的，我們的淨利差——我們的利率風險是相對匹配的。資產負債表匹配度相對較好。我們確實相信，今年下半年和 2025 年聯準會降息將有一些受益機會。

But again, we're not overly asset sensitive or liability sensitive. So, the rate cuts will help but it's not a material mover. I think if you look at our range on our net interest margin over the last three, four years, it's probably in the 3.30%. That the high end is probably in the 3.30%, so that's probably the upside for the foreseeable future.

但同樣，我們並沒有過度資產敏感或負債敏感。因此，降息會有所幫助，但不會產生實質推動作用。我認為，如果你看看我們過去三、四年的淨利差範圍，它可能在 3.30% 左右。高端可能是 3.30%，所以這可能是可預見的未來的上漲空間。

Got it. That's very helpful. And just shifting to the non-interest income side. Looks like you got some success on mortgage banking. Was there any MSR write-up there or was that a true gain on sale number that we should be looking at?

知道了。這非常有幫助。只是轉移到非利息收入方面。看來您在抵押貸款銀行業務上取得了一些成功。那裡是否有任何 MSR 記錄，或者我們應該關注的是真正的銷售收益？

Yes. That was a true gain on sale. We did have better origination volume in the second quarter. Things got better in the second quarter relative to the first quarter. But that was a good result there. And then the other driver of the sequential quarter increase was in our retail investment sales area. That area had a good quarter. And that's expected to likely continue in the back half of the year.

是的。這是真正的銷售收益。我們在第二季度的原始數量確實有所增加。相對於第一季度，第二季度情況有所改善。但那是一個很好的結果。然後，連續季度成長的另一個驅動因素是我們的零售投資銷售領域。該地區季度表現良好。預計這種情況可能會在今年下半年持續下去。

Great. That’s a good color. Thank you so much for taking the question. I’ll step back.

偉大的。這是一個很好的顏色。非常感謝您提出這個問題。我會退後一步。

Thanks, Andrew.

謝謝，安德魯。

David Feaster, Raymond James.

大衛‧菲斯特，雷蒙德‧詹姆斯。

Hi, guys.

嗨，大家好。

Hi.

你好。

Thanks for let me take a couple more. Maybe just touching on credit. First, I guess on the consumer side curious, what you are thinking there and what you're seeing? It seems like things have improved. And then just broadly, what you're seeing on the credit front? Obviously, you've got a really low level of NPAs and conservative underwriting. But what are you watching closely? Just any trends that you're seeing and thoughts on managing the credit book going forward?

謝謝你讓我再多拿幾個。也許只是觸及信用。首先，我想消費者方面很好奇，你在想什麼以及你看到了什麼？情況似乎有所改善。那麼從廣義上講，您在信貸方面看到了什麼？顯然，不良資產的水平非常低，承保也很保守。但你仔細觀察什麼？您對未來管理信用簿有什麼趨勢和想法嗎？

Hi, David. This is Anna. So we continue to monitor really the consumer book. Our overall asset quality within our C&I CRE book, remains very strong. So it continues to be consumer. We continue to monitor here locally as well as on the Mainland. But our outlook is that we are anticipating to look at opportunities to start picking up on consumer again.

嗨，大衛。這是安娜。因此，我們將繼續真正監控消費者書籍。我們的 C&I CRE 帳簿中的整體資產品質仍然非常強勁。所以它仍然是消費者。我們將繼續在本地和內地進行監測。但我們的前景是，我們預期會尋找機會再次開始吸引消費者。

Okay. That's great. And then, maybe just kind of going back to the margin question a little bit. It's great to see the increase in loan yields. Could you just touch a bit on the repricing in the loan book that you're expecting in the next 12 to 24 months? Where roll-off rates are on those maturing loans? And kind of, how new loan yields are trending?

好的。那太棒了。然後，也許只是稍微回到一下保證金問題。很高興看到貸款收益率上升。您能否簡單談談您預計在未來 12 到 24 個月內貸款簿中的重新定價？這些到期貸款的滾存利率是多少？新貸款收益率的趨勢如何？

David, yes. I think we've mentioned in the past the runoff on the loan portfolio averages out to about $175 million to $200 million, a quarter. And so runoff rates are pretty much near the portfolio rate. So in the 4.50% to 5% range. And the new loan yields, in the second quarter weighted average new loan yield was 7.65%.

大衛，是的。我想我們過去曾提到過，每季貸款組合的徑流平均約為 1.75 億至 2 億美元。因此徑流率幾乎接近投資組合率。所以在 4.50% 到 5% 的範圍內。而新增貸款收益率方面，第二季新增貸款加權平均收益率為7.65%。

Okay. Okay. So it seems like maybe this kind of pace of loan yield expansions is probably sustainable especially, if we can start getting more growth. Is that the right way to think about it?

好的。好的。因此，如果我們能夠開始獲得更多成長，這種貸款收益率擴張的速度可能是可持續的。這是正確的思考方式嗎？

Yes. Yes. I think what you saw in the second quarter was without growth, you see just the impact of the repricing. And then to the extent that we can start adding some net growth to the portfolio, that should be helpful to the margin.

是的。是的。我認為你在第二季度看到的是沒有成長，你看到的只是重新定價的影響。然後，如果我們可以開始在投資組合中增加一些淨成長，這應該會對利潤率有所幫助。

Yes. That's pretty powerful. And then just last one. You touched on the strength of defense spending. I'm curious, how does that play into your growth? Is that a C&I opportunity or is it just a positive from a local economic benefit? Just kind of curious how, defense spending can impact the bank.

是的。那是相當強大的。然後就是最後一張。您談到了國防開支的實力。我很好奇，這對你的成長有何影響？這是工商業機會還是只是當地經濟效益的正面影響？只是有點好奇，國防支出如何影響銀行。

Yes, David. This is Arnold. I would say, that those defense spending translate or cascade to a lot of businesses here in Hawaii. So it does have a broader impact to the economy. Lots of small businesses benefit from it. So, it's a good thing. And we believe that it's going to continue as we move forward, given kind of what's going on in the world today.

是的，大衛。這是阿諾德.我想說，這些國防開支會轉化或級聯到夏威夷的許多企業。因此，它確實對經濟產生了更廣泛的影響。許多小企業從中受益。所以，這是一件好事。我們相信，考慮到當今世界正在發生的事情，隨著我們的前進，這種情況將繼續下去。

Okay. That’s helpful. Thank you.

好的。這很有幫助。謝謝。

David, maybe I can just add to what Arnold shared from more specifically on a banking standpoint, it's actually both. It is a loan and deposit opportunity. A lot of the relationships the government contractors start on the deposit side. But once they get business, once they get contracts, they all need lines of credit. So it actually is on both sides of the balance sheet.

大衛，也許我可以從銀行業的角度更具體地補充阿諾德分享的內容，實際上兩者都是。這是一個貸款和存款的機會。政府承包商的許多關係都是從存款方面開始的。但一旦他們獲得業務、獲得合同，他們都需要信貸額度。所以它實際上是在資產負債表的兩邊。

Okay. That makes sense. Thank you.

好的。這是有道理的。謝謝。

Thanks, David.

謝謝，大衛。

Thank you. That is all the questions we have in our queue. I will now turn the call back over to Ms. Matsumoto for closing remarks.

謝謝。這就是我們隊列中的所有問題。現在我將把電話轉回給松本女士做總結發言。

Thank you very much for participating in our earnings call for the second quarter of 2024. We look forward to future opportunities to update you on our progress. Thank you.

非常感謝您參加我們 2024 年第二季的財報電話會議。我們期待未來有機會向您通報我們的最新進展。謝謝。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。