Central Pacific Financial Corp (CPF) 2025 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 2025 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，午安。感謝您的支持，歡迎參加中央太平洋金融公司 2025 年第一季電話會議。（操作員指示）本次通話正在錄音，結束後不久即可在本公司網站 www.cpb.bank 上重播。

I'd like to turn the call over to Ms. Dayana Matsumoto, EVP, Chief Financial Officer. Please go ahead.

我想將電話轉給執行副總裁兼財務長 Dayana Matsumoto 女士。請繼續。

Thank you, Kate, and thank you all for joining us as we review the financial results of the first quarter of 2025 for Central Pacific Financial Corp.

謝謝凱特，也謝謝大家與我們一起回顧中央太平洋金融公司 2025 年第一季的財務表現。

With me this morning are Arnold Martines, Chairman, President and Chief Executive Officer; David Morimoto, Vice Chairman and Chief Operating Officer. Ralph Mesick, Senior Executive Vice President and Chief Risk Officer; and Anna Hu, Executive Vice President and Chief Credit Officer.

今天早上與我一起的還有董事長、總裁兼執行長 Arnold Martines 和副董事長兼營運長 David Morimoto。資深執行副總裁兼首席風險長 Ralph Mesick；執行副總裁兼首席信貸官 Anna Hu。

We have prepared a supplemental slide presentation that provides additional details on our earnings release, and is available in the investor relations section of our website at cpb.bank.

我們準備了一份補充幻燈片演示，提供有關我們收益發布的更多詳細信息，可在我們網站 cpb.bank 的投資者關係部分查閱。

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的陳述。雖然我們相信這些聲明是基於合理的假設，但它們涉及的風險可能會導致實際結果與預測結果有重大差異。有關我們前瞻性陳述相關風險的完整討論，請參閱我們簡報的第 2 張投影片。

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

現在我將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, Diana, 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.

謝謝你，戴安娜，大家好。感謝您對中央太平洋金融公司的關注，我們很高興與您分享我們的最新動態和業績。

Before I provide a market update for the state of Hawaii and we dive into our results, let me start with sharing our recent leadership appointments that went into effect on March 1. David Morimoto has been appointed as Vice Chairman and Chief Operating Officer. David has been with us for over 30 years and has broad extensive experience in the banking industry. In his new role, David will oversee all front line revenue areas.

在我提供夏威夷州的市場最新情況並深入討論我們的業績之前，讓我先分享一下我們最近於 3 月 1 日生效的領導任命。David Morimoto 被任命為副董事長兼營運長。David 在我們公司工作 30 多年，在銀行業擁有豐富的經驗。在新的職位上，大衛將負責監督所有第一線收入領域。

With that change, Diana Matsumoto has been appointed Executive Vice President and Chief Financial Officer, taking David's previous role. Diana has been with us for nearly 20 years with prior leadership in our Treasury and controller areas. These planned transitions recognize the valuable contributions David and Diana have made, while aligning our executive team to the bank's future strategic, financial and business objectives.

隨著這一變化，戴安娜·松本 (Diana Matsumoto) 被任命為執行副總裁兼首席財務官，接替大衛 (David) 之前的職位。戴安娜在我們公司工作近 20 年，曾擔任財務和控制領域的領導。這些計劃中的過渡認可了大衛和戴安娜所做的寶貴貢獻，同時使我們的執行團隊與銀行未來的策略、財務和業務目標保持一致。

Our financial Q1 results were solid across the board and continued to trend favorably. We achieved a meaningful NIM and net interest income expansion. We maintain strong capital, liquidity, and asset quality which positions us well for any economic challenges that may occur in the future. All of these results reflect our focus on optimizing our balance sheet and executing on our strategies.

我們第一季的財務表現全面穩健，並持續呈現良好趨勢。我們實現了淨利差和淨利息收入的顯著成長。我們保持強大的資本、流動性和資產質量，這使我們能夠應對未來可能出現的任何經濟挑戰。所有這些結果都反映了我們對優化資產負債表和執行策略的關注。

We know we are in a time of market and economic uncertainty. We are confident that we will be able to effectively navigate to the changes that impact our industry and our customers and remain focused on delivering strong results regardless of external factors.

我們知道我們正處於市場和經濟不確定的時期。我們相信，無論外部因素如何，我​​們都能夠有效應對影響我們行業和客戶的變化，並繼續專注於取得強勁的業績。

The Hawaii construction industry continues to grow and is being led by residential and government construction. The total value of construction in 2024 for the first 10 months of the year increased an impressive 20.3% compared to the same period in 2023, and is forecasted to exceed $14 billion a substantial increase from the prior year's high of $11.8 billion.

夏威夷建築業持續成長，由住宅和政府建築主導。2024 年前 10 個月的建築總價值與 2023 年同期相比增長了 20.3%，預計將超過 140 億美元，較上一年的 118 億美元大幅增加。

On the tourism front, through February, average daily census state wide visit arrivals dropped 1.9% from the prior year and down 4.3% from 2019. Total visitor spending per day was up 6.3% from the same period the prior year and up 20.5% from 2019.

旅遊業方面，截至 2 月份，全州平均每日遊客人數較前一年下降 1.9%，較 2019 年下降 4.3%。遊客每日總消費比去年同期成長 6.3%，比 2019 年成長 20.5%。

The recovery of visitors from Japan remains slow and has continued to be offset by the strength of domestic travel. Travel to Maui showed signs of improvement year-over-year, with an increase of 13.3% for average daily census visitor arrivals, but it's still recovering from the 2023 Maui wildfires.

日本遊客數量的恢復仍然緩慢，並繼續被國內旅遊的強勁增長所抵消。前往毛伊島的旅遊業比去年同期呈現改善跡象，平均每日遊客人數增加了 13.3%，但仍在從 2023 年毛伊島野火中恢復。

Hawaii's statewide seasonally adjusted unemployment rate remained very low at 2.9% in March and continued to outperform the national unemployment rate of 4.2%. In the area of Hawaii real estate, the market remains strong overall in the first quarter, despite some mixed trends.

夏威夷3月經季節性調整後的全州失業率仍維持在2.9%的非常低水平，持續高於全國4.2%的失業率。在夏威夷房地產領域，儘管存在一些好壞參半的趨勢，但第一季市場整體依然強勁。

Single family home prices on Oahu reached a new record high in February and remained at similar levels in March at $1.16 million median sales price. Home sales for the month of March dipped 10.4% for single family homes, but went up 7.3% for condos compared to the same month of the prior year. Active inventory of housing listings is starting to build, which bodes well for the industry and state.

瓦胡島的獨棟住宅價格在 2 月創下了新高，3 月的售價中位數也維持在類似水平，為 116 萬美元。與去年同期相比，3 月獨棟住宅銷量下降了 10.4%，但公寓銷量卻上漲了 7.3%。活躍的住房庫存開始增加，這對產業和國家來說都是好兆頭。

The state's economy has proven to be resilient in the past and was forecasted earlier this year to grow modestly. However, we continue to monitor the potential impacts from the policies of the current administration and are prepared to navigate any uncertainties in the operating environment.

該州的經濟在過去已證明具有韌性，今年稍早預測將溫和成長。然而，我們將繼續監測現任政府政策的潛在影響，並準備應對經營環境中的任何不確定性。

I'll now turn the call over to David.

我現在將電話轉給大衛。

Thank you, Arnold. Starting off the year, I'm excited to share CPB once again was honored by the Small Business Administration as the SBA lender of the Year Category 2, marking our 16th year receiving this award. CPB was founded on the principle of helping all of Hawaii's people achieve their financial aspirations, and we continue to honor our beginnings with a focus on small businesses.

謝謝你，阿諾德。今年開始，我很高興地告訴大家，CPB 再次被美國小型企業管理局授予年度 SBA 貸款機構第 2 類榮譽，這是我們第 16 年獲此殊榮。CPB 成立的宗旨是幫助所有夏威夷人實現他們的財務願望，我們將繼續秉承我們的初衷，重點關注小型企業。

I am proud of our employees who are committed to helping our customers succeed each and every day. Driving revenue growth is a key focus for us, and we remain cautiously optimistic for the remainder of 2025. We will continue to focus on growing our CPB market share in Hawaii, and supplementing that with targeted lending opportunities in Mainland markets.

我為我們每天致力於幫助客戶取得成功的員工感到自豪。推動營收成長是我們的重點，我們對 2025 年剩餘時間仍持謹慎樂觀的態度。我們將繼續致力於擴大我們在夏威夷的 CPB 市場份額，並透過在大陸市場提供有針對性的貸款機會來補充這一份額。

We have a strong team of relationship bankers and continue to successfully add talent that will help us drive revenue growth in Hawaii and the Mainland. In the first quarter, our loan portfolio increased by $1.7 million sequential quarter, which was the first quarterly increase in two years.

我們擁有一支強大的關係銀行家團隊，並將繼續成功引進人才，幫助我們推動夏威夷和大陸的收入成長。第一季度，我們的貸款組合環比增加了 170 萬美元，這是兩年來的首次季度增長。

First quarter growth was led by Mainland and Hawaii commercial mortgage and Hawaii construction lending. Our team continues to concentrate on building a healthy loan pipeline and serving our clients' needs as they continue to navigate the current market environment. We are optimistic that net loan growth will continue to pick up this year. However, we remain nimble as we learn how the macro environment impacts national and local economies.

第一季的成長主要由大陸和夏威夷商業抵押貸款以及夏威夷建築貸款推動。我們的團隊將繼續致力於建立健康的貸款管道並滿足客戶的需求，幫助他們繼續適應當前的市場環境。我們樂觀地認為，今年淨貸款成長將持續回升。然而，當我們了解宏觀環境如何影響國家和地方經濟時，我們仍然保持靈活。

Our total deposits at the end of the first quarter declined by $48 million from the prior quarter. On an average balance basis, total deposits increased by $14 million with an increase in average non-time deposits of $78 million quarter-over-quarter. Despite some volatility impacting period ends, overall, we continue to grow our deposit relationships and average balances.

我們第一季末的總存款比上一季減少了 4800 萬美元。以平均餘額計算，總存款較上季增加 1,400 萬美元，平均非定期存款較上季增加 7,800 萬美元。儘管有些波動會影響期末，但總體而言，我們的存款關係和平均餘額仍在持續成長。

I'll now turn the call over to Diana, who will provide an update on our financials. Diana?

現在我將把電話轉給戴安娜，她將提供我們財務狀況的最新資訊。黛安娜？

Thanks, David. Turning to our earnings results, we are pleased to share that our performance metrics continue to trend positively and towards our financial targets. Net income for the first quarter was $17.8 million or $0.65 per diluted share.

謝謝，大衛。談到我們的獲利結果，我們很高興地告訴大家，我們的績效指標持續呈現正向趨勢，並朝著我們的財務目標邁進。第一季淨收入為 1,780 萬美元，即每股收益 0.65 美元。

Return on average assets was 0.96%, and return on average equity was 13.04%. Our efficiency ratio was 61.2%, which is the best we posted since the fourth quarter of 2022. Net interest income for the first quarter was $57.7 million, which increased by $1.9 million or 3.5% from the prior quarter.

平均資產報酬率為0.96%，平均股東權益報酬率為13.04%。我們的效率比率為 61.2%，這是自 2022 年第四季以來的最佳水準。第一季淨利息收入為 5,770 萬美元，較上一季增加 190 萬美元，增幅 3.5%。

Net interest margin was 3.31% in the first quarter, up 14 basis points on a sequential quarter basis. Our NIM has expanded every quarter for the last four quarters, which reflects our continued disciplined approach to pricing and balance sheet management.

一季淨利差為3.31%，季增14個基點。過去四個季度，我們的淨利差每季都在擴大，這反映了我們持續嚴謹的定價和資產負債表管理方法。

The net interest income and NIM expansions were primarily driven by a reduction in our funding costs from deposits combined with a higher average yield earned on investment securities. Total cost of deposits decreased by 13 basis points from the prior quarter to 1.08% in the first quarter. The higher average yield on investment securities can be attributed to our investment portfolio repositioning we completed last quarter.

淨利息收入和淨利差擴大主要得益於存款融資成本的降低以及投資證券平均收益率的提高。第一季存款總成本較上季下降13個基點至1.08%。投資證券平均收益率的提高可以歸因於我們上個季度完成的投資組合重新定位。

Total other operating income was $11.1 million and total other operating expense was $42.1 million in the first quarter. Due to market volatility, our bully income and our deferred compensation expenses decrease during the quarter. To the extent market volatility continues, we'll continue to have some variability in these line items.

第一季其他營業收入總額為 1,110 萬美元，其他營業支出總額為 4,210 萬美元。由於市場波動，我們的淨收入和遞延薪酬費用在本季有所減少。如果市場波動持續下去，這些項目將繼續保持一定的變化。

Additionally, as we continue our focus on efficiencies, we are in the process of consolidating our office space into our main headquarters in downtown Honolulu. With this move, we anticipate that we will exit our current operations center building and recognize a one-time pre-tax write-off of $2 million to $2.5 million in the second or third quarter.

此外，隨著我們繼續注重效率，我們正在將辦公空間整合到位於檀香山市中心的總部。透過這項舉措，我們預計將退出目前的營運中心大樓，並在第二季或第三季確認 200 萬至 250 萬美元的一次性稅前註銷。

Going forward, we expect to realize total annual savings from reduced lease, operating, and maintenance expenses of approximately $1 million. Our effective tax rate was 21.2% in the first quarter, which is in the range that we communicated on our last call and consistent with historical trends.

展望未來，我們預計透過減少租賃、營運和維護費用，每年可節省約 100 萬美元。我們第一季的有效稅率為 21.2%，與我們上次電話會議中傳達的範圍一致，並且與歷史趨勢一致。

During the first quarter, we repurchased about 77,000 shares of common stock at a total cost of $2.1 million or $27.09 per share. Additionally, in the second quarter to date through April 16, we have repurchased approximately 86,000 shares at an average price of $24.70 per share. Finally, our Board of Directors declared a quarterly cash dividend of $0.27 per share, which will be payable on June 16 to shareholders of record on May 30.

第一季度，我們回購了約 77,000 股普通股，總成本為 210 萬美元，即每股 27.09 美元。此外，截至 4 月 16 日的第二季度，我們已以每股 24.70 美元的平均價格回購了約 86,000 股。最後，我們的董事會宣布季度現金股利為每股 0.27 美元，將於 6 月 16 日支付給 5 月 30 日登記在冊的股東。

I'll now turn the call over to Ralph.

我現在將電話轉給拉爾夫。

Thank you, Diana. Our asset quality remained healthy in the first quarter. Net charge-offs were $2.6 million or 20 basis points annualized on average loans. This represents a 9 basis point decrease from the prior quarter. The decrease came from lower charge-offs on the consumer and CNI loans.

謝謝你，戴安娜。一季度，我們的資產品質保持健康。淨沖銷金額為 260 萬美元，以平均貸款年化率計算為 20 個基點。這比上一季下降了 9 個基點。減少的原因是消費者貸款和 CNI 貸款的沖銷額減少。

Non-performing assets were $11.1 million or 15 basis points of total assets at quarter end, flat from the prior quarter. Criticized loans also remain near cyclical low levels at 82 basis points of total loans, up 20 basis points quarter-on-quarter. Past two loans, 90 plus days were flat compared to the prior quarter, just 1 basis point of total loans.

本季末不良資產為 1,110 萬美元，佔總資產的 15 個基點，與上一季持平。受批評貸款也維持在週期性低水準附近，佔貸款總額的 82 個基點，較上季增加 20 個基點。過去兩筆90天以上的貸款與上一季相比持平，僅佔貸款總額的1個基點。

Our allowance for credit loss was $60.5 million or 1.13% of outstanding loans, up 2 basis points. The provision expense was $4.2 million. In the quarter, we added $3.9 million to the allowance and an additional $300,000 to the reserve for unfunded commitments. The higher allowance was primarily driven by a more conservative macroeconomic outlook. Supporting this allowance, we also maintain a strong level of capital.

我們的信用損失準備金為 6,050 萬美元，佔未償還貸款的 1.13%，上升了 2 個基點。撥備支出為420萬美元。本季度，我們增加了 390 萬美元的準備金，並增加了 30 萬美元的未付承諾儲備金。提高津貼主要是受到更保守的宏觀經濟前景的推動。為了支持這項津貼，我們也維持了強勁的資本水準。

Total risk-based capital was 15.6% at the end of the first quarter. At these levels, the bank can readily absorb the financial impacts resulting from a period of prolonged stress. Looking ahead, We'll continue to rely on a well-tested management approach that considers risks through a cycle, anticipates a range of outcomes, and builds a margin of safety to deal with adverse conditions.

第一季末總風險資本為15.6%。在這些層面上，銀行可以輕易吸收長期壓力所造成的財務影響。展望未來，我們將繼續依靠經過充分檢驗的管理方法，該方法透過一個週期考慮風險，預測一系列結果，並建立安全邊際來應對不利條件。

With that, let me turn the call back to Arnold.

說完這些，讓我把電話轉回給阿諾。

Thank you, Ralph. In summary, we had a solid first quarter to kick off 2025. We are focused on supporting our clients and the community and driving value to our shareholders. We are prepared to navigate through these uncertain times. And we thank all of you for your continued support and confidence in our organization. At this time we will be happy to address any questions you may have.

謝謝你，拉爾夫。總而言之，我們以穩健的第一季開啟了 2025 年。我們專注於支持我們的客戶和社區並為我們的股東創造價值。我們已準備好渡過這些不確定的時期。我們感謝大家對我們組織的持續支持與信任。此時我們將很樂意解答您可能遇到的任何問題。

(Operator instructions)

（操作員指示）

David Feaster, Raymond James.

大衛菲斯特、雷蒙詹姆斯。

Hey, good morning, everybody.

嘿，大家早安。

Hi David.

你好，大衛。

Obviously, there's a lot of volatility uncertainty in the market today. I want to just start on the loan growth side. I mean, obviously, again, there's a lot of chaos out there. Curious how your clients are responding to that. How is the pipeline trending and just, it sounds like you're optimistic about growth, just maybe, where do you see most opportunities to drive growth?

顯然，當今市場存在很大的波動不確定性。我想先從貸款成長方面談起。我的意思是，顯然，外面又有很多混亂。好奇您的客戶對此有何反應。管道趨勢如何？聽起來您對成長持樂觀態度，也許，您認為推動成長的最多機會在哪裡？

David, do you want to take that call? I mean that question.

大衛，你想接那通電話嗎？我指的是那個問題。

Yeah, sure. Hey David, yeah, obviously there is a lot of uncertainty. We're in touch with all of our large borrowers and -- potential borrowers in our pipeline. And while there remains a lot of volatility, certain transactions are likely to get postponed. We remain cautiously optimistic on the future. And we are reiterating our full year loan guidance of low to mid single digit loan growth for the full year.

是的，當然。嘿，大衛，是的，顯然存在著許多不確定性。我們與所有大型借款人和潛在藉款人保持聯繫。由於仍然存在很大的波動性，某些交易可能會被推遲。我們對未來仍保持謹慎樂觀的態度。我們重申全年貸款指導，即全年貸款成長率將保持在低至中等個位數。

That growth, I'm sorry, David, that growth is likely to be focused in the commercial areas. So it's going to be CNI and commercial mortgage and also construction. Those are the probably the growth areas for the next several quarters.

對不起，大衛，這種成長可能集中在商業領域。所以它將是 CNI 和商業抵押貸款以及建築。這些可能是未來幾季的成長領域。

Okay, that's terrific. And then I know this is a hard question to answer, but look, it's, I'm just curious how do you think about potential impacts on your clients from these, the trade wars, the tariffs, in those. As you dig into the book, what segments are you expecting to be most impacted and, just kind of how are you approaching this at this point? I mean, it's maybe it's kind of a wait and see approach, but I'm just kind of curious your thoughts.

好的，太棒了。我知道這是一個很難回答的問題，但是，我只是好奇您如何看待貿易戰、關稅等對您的客戶可能造成的影響。當您深入研究這本書時，您認為哪些部分會受到最大的影響，以及您目前如何處理這個問題？我的意思是，這也許是一種觀望的態度，但我只是有點好奇你的想法。

Ralph, you want to take that question?

拉爾夫，你想回答這個問題嗎？

Sure. Hi, David. I think the outlook really has shifted this quarter, but when we look at our portfolio, talking with, and first off, looking at, industries that probably are more impacted, they probably represent about 10% of our total loan book. So we're talking about accommodation, restaurant, wholesale and retail trades.

當然。你好，大衛。我認為本季的前景確實發生了變化，但當我們審視我們的投資組合、與可能受影響更大的行業進行交談時，首先要看的是，它們可能占我們總貸款帳目的 10% 左右。所以我們談論的是住宿、餐飲、批發和零售貿易。

And I think, from our perspective today, we believe that our customers are going to be able to deal with some level of short term turbulence in the marketplace. We know the policy actions. These are discretionary actions, and we do believe that they're not intended to damage the economy. So we think that there's going to be some turbulence in the short term, but we believe that our our customers are going to be able to sort of deal with that.

我認為，從我們今天的角度來看，我們相信我們的客戶將能夠應對市場上一定程度的短期動盪。我們知道政策行動。這些都是酌情採取的行動，我們確實認為它們並非旨在損害經濟。因此，我們認為短期內會出現一些動盪，但我們相信我們的客戶能夠應付。

And I think over the longer term, we do have a playbook for stress events, and we've kind of pulled out that playbook. We've looked at the portfolio. We're pretty confident we can deal with, a large level of stress and we are having these conversations with clients and we will calibrate to events as they develop.

我認為從長遠來看，我們確實有應對壓力事件的劇本，而且我們已經拿出了這本劇本。我們已經看過投資組合了。我們非常有信心能夠應對巨大的壓力，我們正在與客戶進行這些對話，並將根據事態的發展進行調整。

Okay, that's helpful. And then the last one for me. Deposit performance, you guys have done a great job on the deposit side. How -- could you touch on maybe the competitive landscape for funding on the islands, your ability to drive core deposit growth going forward, and I mean, look, you're sitting here at, just barely over 100 basis points of deposit costs. I mean, is there much deposit cost leverage to drive that margin expansion or is it primarily going to be loan growth and and repricing there that's going to be driving it?

好的，這很有幫助。對我來說這是最後一個。存款表現，你們在存款方面做得很好。您能否談談島上融資的競爭格局，以及您推動未來核心存款成長的能力，我的意思是，您看，您目前的存款成本剛剛超過 100 個基點。我的意思是，是否有很大的存款成本槓桿來推動保證金擴張，或者主要是貸款成長和重新定價來推動保證金擴張？

Diana can answer that question.

戴安娜可以回答這個問題。

Hi David, thanks for the question. On the deposit side, I'd say we're very pleased with our performance. Our average balances were up for the quarter with a favorable mix shift as we grew average core deposits, including demand deposits, while we let some CDs run off.

你好，大衛，謝謝你的提問。在存款方面，我想說我們對我們的表現非常滿意。由於我們增加了包括活期存款在內的平均核心存款，同時減少了部分存單，因此本季我們的平均餘額有所上升，且結構發生了有利的變化。

Our teams have been doing a really good job and remain very focused on growing core deposits. As far as the cost, we're also pleased with the deposit costs trend down, and my expectation is that our funding costs should continue to trend down, but more gradually if the Fed is on hold.

我們的團隊一直表現出色，並且始終專注於增加核心存款。就成本而言，我們也對存款成本的下降趨勢感到高興，我預計我們的融資成本應該會繼續下降，但如果聯準會維持利率不變，下降速度會更加緩慢。

The market for pricing, deposit pricing, here continues to be very rational. Our deposit pricing betas have been generally as expected, and I'd say that our pricing strategies and continued discipline have worked very well.

這裡的定價市場、存款定價市場仍然非常理性。我們的存款定價測試版總體上符合預期，我想說我們的定價策略和持續的紀律非常有效。

Yeah, that's helpful. Thanks everybody.

是的，這很有幫助。謝謝大家。

Thanks, David.

謝謝，大衛。

Andrew Liesch, Piper Sandler.

安德魯·萊施、派珀·桑德勒。

Hi, good morning, everyone. Just stick it on the margin here. I'm curious if you had what the margi was in the month of March?

大家好，早安。只需將其粘貼在此處的邊緣即可。我很好奇您三月的利潤是多少？

Diana?

黛安娜？

Hi Andrew. Yes, for the month of March, our margin was 3.37%.

你好，安德魯。是的，三月我們的利潤率為 3.37%。

Okay. So, I mean, you're starting off here in the second quarter 6 basis points higher. Is that a good jumping off point or do there some other puts and takes, that may make that not generate that much expansion.

好的。所以，我的意思是，第二季的起點是高出 6 個基點。這是一個好的起點嗎？或者是否存在其他的利弊，這可能會導致不產生那麼多的擴張。

Yeah, Andrew, I'd say, overall we're quite pleased with our continued NIM expansion, which was driven by our lowering our funding costs, the investment securities repositioning, as well as overall favorable mixed shifts and positive fixed asset repricing. Going forward, our NIM, I would expect it to continue to expand.

是的，安德魯，我想說，總的來說，我們對 NIM 的持續擴張感到非常滿意，這是由我們降低融資成本、投資證券重新定位以及整體有利的混合轉變和積極的固定資產重新定價所推動的。展望未來，我預計我們的 NIM 將繼續擴大。

Our guidance is for an increase of approximately 4 to 7 basis points next quarter. This assumes that the Fed is on hold in May and we continue to have a relatively flat yield curve. To the extent we get additional Fed cuts later this year, those will benefit our NIM further as our deposits still have some downward repricing ability, and then, as always a steeper yield curve will be helpful as well.

我們的預期是下個季度將增加約 4 至 7 個基點。這假設聯準會在五月維持利率不變，且殖利率曲線持續保持相對平坦。如果聯準會在今年稍晚進一步降息，這將進一步有利於我們的淨利差，因為我們的存款仍然具有一定的向下重新定價能力，而且，一如既往，更陡峭的收益率曲線也會有所幫助。

Certainly. Do you have handy what the the average yield on new loan production was during the quarter?

當然。您是否知道本季新貸款的平均收益率是多少？

Yes, I do. It was about 7.2%. That is the new loan yield in the first quarter.

是的，我願意。約為7.2%。這是第一季新增貸款收益率。

Got it. Very helpful. And obviously you have like a couple one-time items, the market adjustments that bully and compensation costs. But do you -- would you expect that those line items kind of right size themselves to be in line with your your prior guidance ahead of on the expense side the the cost saves from the rationalization of the real estate?

知道了。非常有幫助。顯然，您有幾個一次性項目，市場調整會帶來霸凌和補償成本。但是您是否—您是否期望這些項目的正確大小與您先前的指導一致，在費用方面，在房地產合理化節省成本之前？

Yes, Andrew, so that's correct. We had some volatility this quarter with the bully and our deferred compensation expense. And, but on the expense side overall, our objective continues to be driving positive operating leverage, and we believe we'll be successful at that this year. So our guidance remains the same for the near term. So our quarterly other operating expense guide continues to be $42.5 million to $43.5 million. Per quarter.

是的，安德魯，這是正確的。本季度，由於霸凌和遞延薪資費用，我們遇到了一些波動。但從整體費用方面來看，我們的目標仍然是推動積極的經營槓桿，我們相信今年我們會成功。因此，我們的短期指導保持不變。因此，我們的季度其他營運費用指南繼續為 4,250 萬美元至 4,350 萬美元。每季。

Got it. And then the cost saves from that real estate rationalization, are those going to be reinvested into the franchise somewhere, or should that result in a slightly lower run rate?

知道了。那麼，透過房地產合理化節省下來的成本，是否會被重新投資到特許經營中，還是會導致運作率略有下降？

We are continuing to make some investments in our people and our technology, and those things will create efficiencies throughout our processes. So with that said, we may see some expenses rise slightly in the short term, and that would be offsetting the savings from the office consolidation.

我們將繼續對我們的人才和技術進行投資，這些投資將提高我們整個流程的效率。因此，我們可能會看到一些費用在短期內略有上升，這將抵消辦公室整合帶來的節省。

Awesome That -- you've covered everything that I had asked. Thanks so much. I'll step back.

太棒了——你已經回答了我所問的所有內容。非常感謝。我會退後。

Thanks, Andrew.

謝謝，安德魯。

(Operator instructions)

（操作員指示）

David Feaster, Raymond James.

大衛菲斯特、雷蒙詹姆斯。

Hey, I just wanted to follow up maybe on the capital side. I mean, we bought some stock back in the first quarter, obviously been active here in the second quarter. You guys kind of bottom, you guys have done a great job. Curious just how do you think about capital priorities today? I mean, obviously the stocks still attractive, potential securities, restructurings, just kind of curious, how do you think about the opportunities that lie ahead.

嘿，我只是想跟進一下資本方面的情況。我的意思是，我們在第一季回購了一些股票，顯然在第二季很活躍。你們這些底層人士，你們做得很好。好奇您今天如何看待資本優先事項？我的意思是，顯然股票仍然具有吸引力，潛在的證券，重組，只是有點好奇，您如何看待未來的機會。

Hey David. Overall our capital position continues to be strong and healthy, and we have flexibility. As we noted previously, we are on the higher end of our target ranges for our capital ratios. So we are evaluating how we can best optimize capital and deploy capital while continuing to monitor the economic outlook and adjusting as appropriate. So our capital priorities include continuing to pay our quarterly cash dividend with about a 40% payout ratio.

嘿，大衛。總體而言，我們的資本狀況持續保持強勁和健康，並且具有靈活性。正如我們之前提到的，我們的資本比率處於目標範圍的高端。因此，我們正在評估如何最好地優化資本和部署資本，同時繼續監控經濟前景並進行適當調整。因此，我們的資本重點包括繼續支付季度現金股息，股息率約為 40%。

After that, we plan to use capital for organic balance sheet growth, and share repurchases also continue to make sense as we noted, we have resumed share repurchases and with the overall market being down, we view it as an opportunity. But with that said, we'll continue to evaluate the operating environment, especially with the recent heightened uncertainty and volatility, and we will make our capital decisions based on the outlook.

此後，我們計劃利用資本實現有機資產負債表成長，股票回購也繼續具有意義，正如我們所指出的，我們已經恢復股票回購，並且由於整體市場低迷，我們認為這是一個機會。但話雖如此，我們將繼續評估經營環境，特別是在近期不確定性和波動性加劇的情況下，我們將根據前景做出資本決策。

Okay. All right, that's helpful. Thanks everybody.

好的。好的，這很有幫助。謝謝大家。

Thanks David.

謝謝大衛。

I will turn the call back over to Diana Matsumoto for closing remarks.

我將把電話轉回給戴安娜·松本 (Diana Matsumoto) 做最後發言。

Thank you very much for participating in our earnings call for the first quarter of 2025. We look forward to sharing our progress with you next quarter. Thank you.

非常感謝您參加我們 2025 年第一季的收益電話會議。我們期待下個季度與您分享我們的進展。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。