(CUBI) 2022 Q4 法說會逐字稿

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Customers Bank Fourth Quarter and Year-End Earnings Report Conference Call. (Operator Instructions)

早上好。我叫 Rob，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加客戶銀行第四季度和年終收益報告電話會議。 （操作員說明）

Thank you. David Patti, Director of Communications, you may begin your conference.

謝謝。傳播總監 David Patti，你可以開始你的會議了。

Thank you, Rob. Good morning, everyone. Thank you for joining us for the Customers Bancorp's earnings call for the fourth quarter and full year of 2022. The presentation deck you will see during today's webcast has been posted on the Investor Relations page of the bank's website at www.customersbank.com.

謝謝你，羅布。大家，早安。感謝您參加 Customers Bancorp 的 2022 年第四季度和全年收益電話會議。您將在今天的網絡廣播中看到的演示文稿已發佈在該銀行網站 www.customersbank.com 的投資者關係頁面上。

You can scroll to Q4 '22 and year-end results and click download presentation. You can also download a PDF of the full press release at this spot. Our investor presentation includes important details that we will walk through on this morning's webcast. I encourage you to download and use the document. Before we begin, we'd like to remind you that some of the statements we make today may be considered forward-looking. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance results to differ materially from what is currently anticipated.

您可以滾動到 Q4 '22 和年終結果，然後單擊下載演示文稿。您還可以在此處下載完整新聞稿的 PDF 版本。我們的投資者介紹包括我們將在今天上午的網絡廣播中介紹的重要細節。我鼓勵您下載並使用該文檔。在我們開始之前，我們想提醒您，我們今天所做的一些聲明可能被認為是前瞻性的。這些前瞻性陳述受到許多風險和不確定性的影響，這些風險和不確定性可能導致實際業績結果與當前預期存在重大差異。

Please note that these forward-looking statements speak only as of the date of this presentation, and we undertake no obligation to update these forward-looking statements in light of new information or future events, except to the extent required by applicable securities laws. Please refer to our SEC filings, including our Form 10-K and 10-Q for a more detailed description of the risk factors that may affect our results.

請注意，這些前瞻性陳述僅在本演示文稿發布之日起生效，我們不承擔根據新信息或未來事件更新這些前瞻性陳述的義務，適用證券法要求的範圍除外。請參閱我們的 SEC 文件，包括我們的 10-K 和 10-Q 表格，以更詳細地描述可能影響我們結果的風險因素。

Copies may be obtained from the SEC or by visiting the Investor Relations section of our website. At this time, it's my pleasure to introduce Customers Bancorp Chair, Jay Sidhu.

可從美國證券交易委員會或訪問我們網站的投資者關係部分獲得副本。此時，我很高興向您介紹 Customers Bancorp 主席 Jay Sidhu。

Thanks, Dave. And good morning, ladies and gentlemen. Welcome to Customers Bancorp Q4 2022 and year-end 2022 earnings call. Joining me this morning is our President and CEO of our bank Sam Sidhu, Customers Bancorp, CFO; Carla Leibold, our bank's CFO and Head of Corporate Development at Customers Bancorp, Phil Watkins; and the company's Chief Credit Officer, Andy Bowman.

謝謝，戴夫。女士們先生們，早上好。歡迎來到 Customers Bancorp 2022 年第四季度和 2022 年底財報電話會議。今天早上和我一起來的是我們銀行的總裁兼首席執行官 Sam Sidhu，Customers Bancorp，首席財務官； Carla Leibold，我們銀行的首席財務官兼 Customers Bancorp 的企業發展主管，Phil Watkins；以及公司的首席信貸官 Andy Bowman。

As some of you may know, we are actually pleased to share with you again that about 10 years ago. Customers Bancorp became a publicly traded company using what was a troubled small $150 million asset Pennsylvania-based bank as our charter. -- and we invested our personal money into it. And today, this little troubled bank has been transformed into one of the 100 largest banks in the country.

正如你們中的一些人可能知道的那樣，我們實際上很高興再次與你們分享大約 10 年前的那件事。 Customers Bancorp 成為一家上市公司，使用總部位於賓夕法尼亞州的一家陷入困境、資產規模為 1.5 億美元的小型銀行作為我們的章程。 - 我們將個人資金投入其中。而今天，這家陷入困境的小銀行已經搖身一變成為全國最大的 100 家銀行之一。

As you can see on Slide 3 of our deck, we are today, a $20 billion asset super community bank focused on superior customer service by executing on our high touch supported by high tech model. Today, we have a very simple but unique business model operating with community banking, corporate banking, which includes specialty banking and then last, digital banking franchise.

正如您在幻燈片 3 中看到的那樣，我們今天是一家擁有 200 億美元資產的超級社區銀行，通過在高科技模型支持下執行我們的高接觸，專注於提供卓越的客戶服務。今天，我們有一個非常簡單但獨特的商業模式，包括社區銀行業務、企業銀行業務，其中包括專業銀行業務，最後是數字銀行業務。

It is our belief that forward-thinking banks must be execution-driven, clearly define the markets that they wish to focus on as well as what they will not focus on and have a superior tech forward digital strategy.

我們相信，具有前瞻性思維的銀行必須以執行為導向，明確定義他們希望關注的市場以及他們不會關注的市場，並擁有卓越的技術前瞻性數字戰略。

These are the things that we are focusing on every single day. It is by sticking to these fundamentals that customers has grown its assets, its loans, it's deposits its income and shareholder value by an average of 20% to 30% a year since becoming a public company just 10 years ago.

這些是我們每天關注的事情。自 10 年前成為上市公司以來，正是通過堅持這些基本原則，客戶的資產、貸款、收入和股東價值平均每年增長 20% 至 30%。

I'd like to take a minute to provide the perspective on the current external environment. As you all know, the historic pace of interest rate increases by the Fed inverted yield curve as well as the quantitative tightening has created a very challenging environment especially as it relates to deposits and especially for institutions or banks like ours, which are principally focused on serving business customers. All of these factors have led to an increase in our deposit cost over our expectations and the sophisticated nature of our primary depositor base expects market rate deposits. So we have focused tremendously on also market rate lending, and our loan data is far in excess of what you normally see in the banking sector.

我想花一點時間談談對當前外部環境的看法。眾所周知，美聯儲反向收益率曲線以及量化緊縮帶來的歷史性加息步伐創造了一個非常具有挑戰性的環境，尤其是與存款相關的環境，尤其是對於像我們這樣主要專注於存款的機構或銀行而言服務商業客戶。所有這些因素導致我們的存款成本增加超過我們的預期，並且我們的主要存款人基礎的複雜性期望市場利率存款。因此，我們也非常關注市場利率貸款，我們的貸款數據遠遠超過您通常在銀行業看到的數據。

We expect this challenging environment, however, to persist and with the Fed fund rate peaking at or above 5% in the first half of this year. As a result, there may be very temporary some pressure on our margins for just a quarter or so, hitting an inflection point as the Fed tapers followed by NIM expansion beginning sometime in the second half of the year. we will go over our guidance with you today in some detail. In this challenging rate and inflationary environment, we believe that you need an explanation of some of the few nonrecurring items and Carla, our CFO, will go over those items with you in some detail.

然而，我們預計這種充滿挑戰的環境將持續存在，並且聯邦基金利率將在今年上半年達到或超過 5% 的峰值。因此，我們的利潤率可能會在短短四分之一左右的時間裡暫時承受一些壓力，隨著美聯儲縮減緊縮和 NIM 擴張在今年下半年的某個時候開始，達到拐點。我們今天將與您詳細討論我們的指南。在這個具有挑戰性的利率和通貨膨脹環境下，我們相信您需要對少數非經常性項目中的一些進行解釋，我們的首席財務官 Carla 將與您詳細討論這些項目。

Now on to our current performance. We are pleased to report to you that Q4 2022 earnings from the core bank were $1.37 per diluted share, and that beat our internal targets, and we believe they'll be by about $0.10 the normalized consensus estimates. This brings our full year 2022 core earnings per share to $6.51 and when you exclude PPP and the provision release benefit from the sale of $500 million of consumer installment loans in Q3, our adjusted earnings per share for the year were $5.65.

現在談談我們目前的表現。我們很高興地向您報告，核心銀行 2022 年第四季度每股攤薄收益為 1.37 美元，超過了我們的內部目標，我們相信它們將比標準化共識估計高出約 0.10 美元。這使我們的 2022 年全年核心每股收益達到 6.51 美元，當您排除 PPP 和第三季度出售 5 億美元消費者分期貸款的撥備釋放收益時，我們調整後的全年每股收益為 5.65 美元。

Our reported earnings beat the upper end of our 2022 core earnings per share guidance of $4.75 to $5 and we beat that by about 13%. Our responsible organic growth strategy is laser-focused on credit quality with 90% of our growth over the past year in very low credit risk as well as variable rate specialty lending verticals, and that's resulted in us achieving an above-average asset beta. Asset quality remains exceptional and credit reserves are extremely robust at 425% of total nonperforming loans.

我們報告的收益超過了我們 2022 年核心每股收益 4.75 美元至 5 美元的指導上限，我們超出了約 13%。我們負責任的有機增長戰略專注於信貸質量，過去一年我們 90% 的增長來自極低的信貸風險以及可變利率專業貸款垂直領域，這使我們實現了高於平均水平的資產貝塔值。資產質量依然出色，信貸儲備極為強勁，佔不良貸款總額的 425%。

We've taken prudent risk management, strategic actions over the past several quarters to ensure that we are well positioned from a capital point of view, credit liquidity as well as earnings. And we believe we are very well positioned as we head into this uncertain 2023 and beyond. We are very focused on improving our margins, improving our capital ratios and we will do that by moderating our growth in 2023, improving the quality of our balance sheet while we control our expense base, and we are going to be very actively buying back stock -- common stock to the extent that we are trading below book value, and we believe that will result in creating exceptional value for our shareholders.

我們在過去幾個季度採取了審慎的風險管理和戰略行動，以確保我們在資本、信貸流動性和收益方面處於有利地位。我們相信，在我們進入這個不確定的 2023 年及以後時，我們處於非常有利的位置。我們非常專注於提高我們的利潤率，提高我們的資本比率，我們將通過在 2023 年放緩我們的增長，改善我們的資產負債表質量，同時我們控制我們的費用基礎來做到這一點，我們將非常積極地回購股票- 普通股交易價格低於賬面價值，我們相信這將為我們的股東創造非凡的價值。

Like I said earlier, we are very optimistic about our future. I'll now turn it over to Sam to talk about the performance of our franchisees in this as well as some key financial highlights. Sam?

正如我之前所說，我們對未來非常樂觀。我現在將其轉交給 Sam 來談談我們的特許經營商在這方面的表現以及一些關鍵的財務亮點。薩姆？

Thank you, Jay. And good morning, everyone. At Customers Bank, our differentiated but simple business model is built on 2 foundational principles. First, we are a client-centric high-tech, high-touch organization. Second, we are committed to industry-leading credit quality. I'd like to take a few minutes to walk you through the franchise we have created across our community, corporate and digital verticals over the past few years and recap how franchise growth has delivered outsized financial results for our shareholders.

謝謝你，傑伊。大家早上好。在 Customers Bank，我們差異化但簡單的業務模型建立在 2 個基本原則之上。首先，我們是一個以客戶為中心的高科技、高接觸組織。第二，我們致力於行業領先的信用質量。我想花幾分鐘時間向您介紹過去幾年我們在社區、企業和數字垂直領域創建的特許經營權，並回顧一下特許經營權的增長如何為我們的股東帶來巨大的財務業績。

Moving to Slide 4 and starting with our community banking franchise. This is where clients are serviced through our single point of contact model by relationship managers who have years, if not decades of experience in their local markets. On the loan side, this is led by our regional C&I, multifamily, investment CRE and SBA products. We ended the year with about $5.9 billion in community banking loans. Our deep relationships and network in these markets lends to a lower cost, sticky depositor base. We have significant market share in many of our Northeast home markets, and are selectively looking to expand this model nationally into higher-growth markets over time, beginning first in the Southeast.

轉到幻燈片 4，從我們的社區銀行專營權開始。在這裡，客戶經理通過我們的單點聯繫模式為客戶提供服務，他們在當地市場擁有多年甚至數十年的經驗。在貸款方面，這是由我們的區域 C&I、多戶住宅、投資 CRE 和 SBA 產品主導的。年底，我們獲得了約 59 億美元的社區銀行貸款。我們在這些市場的深厚關係和網絡有助於降低成本、增加粘性的存款人基礎。我們在許多東北本土市場擁有重要的市場份額，並且正在有選擇地尋求隨著時間的推移在全國范圍內將這種模式擴展到更高增長的市場，首先從東南部開始。

Now moving on to our corporate and specialty banking franchise. Teams here service sophisticated corporate clients across complementary products. This vertical ended the year with $7.2 billion in loans, and the mix has increased from 25% of total loans just a few years ago to nearly half of total loans today. This growth has helped transform the organization we were just a few years ago.

現在轉向我們的企業和專業銀行特許經營權。這裡的團隊通過互補產品為複雜的企業客戶提供服務。這一垂直領域在 2018 年末的貸款總額為 72 億美元，而且這一比例已從幾年前佔貸款總額的 25% 增加到如今佔貸款總額的近一半。這種增長幫助改變了我們幾年前的組織。

Importantly, we have focused our efforts on floating rate low to no credit risk verticals. The largest component, which we call our fund finance vertical includes our capital call and lender finance line businesses. The fund finance Tech & Venture and financial institution group teams are leading the growth of our lower cost deposit pipelines. Moving to Slide 6. Our digital banking team has organically built a franchise that has acquired over 0.5 million profitable digital customers since 2019.

重要的是，我們將精力集中在浮動利率低至無信用風險的垂直領域。最大的組成部分，我們稱之為我們的基金融資垂直，包括我們的資本調用和貸方融資業務。基金融資 Tech & Venture 和金融機構團隊正在引領我們低成本存款渠道的發展。轉到幻燈片 6。我們的數字銀行團隊有機地建立了特許經營權，自 2019 年以來已獲得超過 50 萬盈利的數字客戶。

We are leveraging our deep fintech relationships and industry-leading technology capabilities to build out our fintech banking revenues, otherwise commonly referred to as Banking-as-a-Service . In the fourth quarter, we successfully onboarded a major customer. And as previously stated, we expect revenues in this business to reach a $10 million run rate this year. We are currently in discussions with new partners regarding further opportunities. Additionally, building off of the demand around our consumer installment portfolio sale in the third quarter we are developing a held-for-sale origination strategy, which we will have more to report on in the next quarter or 2.

我們正在利用我們深厚的金融科技關係和行業領先的技術能力來增加我們的金融科技銀行收入，否則通常被稱為銀行即服務。第四季度，我們成功吸引了一位大客戶。如前所述，我們預計該業務今年的收入將達到 1000 萬美元。我們目前正在與新合作夥伴討論進一步的機會。此外，根據第三季度消費者分期付款組合銷售的需求，我們正在製定待售發起策略，我們將在下一季度或第二季度報告更多內容。

Finally, I'm pleased to report that our tech-enabled deposit and transaction banking customer pipeline is strong. By merging the product innovation of a tech company with the expertise of a bank, we expect these initiatives will help our deposit mix in the latter half of 2023. Now turning to Slide 7. I'd like to take a few minutes to reflect back on the dramatic transformation that this organization has had over the past few years. At the beginning of 2020, our balance sheet was just $11.5 billion, and as of year-end 2022, we are now just under $21 billion. We've gathered over $5 billion in deposits in 2021 alone. This allowed us to self-fund our PPP loans. And as those loans were forgiven, we deployed that cash into securities and low-risk loan growth. Following the deposit growth in 2021, we grew total loans excluding PPP by an impressive 30% while maintaining our credit discipline. In 2023, securities booked cash flows and PPP forgiveness, which you'll hear from Carla in a minute, will provide significant fuel for higher-margin reinvestment without the need to increase the size of our balance sheet.

最後，我很高興地報告我們的技術支持存款和交易銀行客戶渠道很強大。通過將科技公司的產品創新與銀行的專業知識相結合，我們預計這些舉措將有助於我們在 2023 年下半年的存款組合。現在轉到幻燈片 7。我想花幾分鐘時間回顧一下關於該組織在過去幾年中發生的巨大轉變。 2020 年初，我們的資產負債表僅為 115 億美元，而截至 2022 年底，我們的資產負債表現在略低於 210 億美元。僅 2021 年一年，我們就積累了超過 50 億美元的存款。這使我們能夠自籌 PPP 貸款資金。由於這些貸款被免除，我們將這些現金用於證券和低風險貸款增長。繼 2021 年存款增長之後，我們在保持信貸紀律的同時，不包括 PPP 在內的貸款總額增長了 30%，令人印象深刻。到 2023 年，證券登記現金流量和 PPP 寬恕（您馬上就會從 Carla 那裡聽到）將為更高利潤的再投資提供重要動力，而無需增加我們的資產負債表規模。

We expect this will set us up for a strong second half of 2023 and an even stronger 2024. Moving on to Slide 8, you'll see the real cumulative power of our 3 franchises.

我們預計這將使我們在 2023 年下半年和 2024 年更加強勁。繼續看幻燈片 8，您將看到我們 3 個特許經營權的真正累積力量。

While PPP was understandably viewed as onetime in nature, we focused our efforts on using the benefit of this business line to build recurring earnings power. Our net interest income, excluding PPP, has more than doubled from 2019 from $277 million to an impressive $565 million in 2022. Our associated recurring earnings power has dramatically increased with our EPS, excluding PPP, increasing by over 2.5x during the same time period.

雖然 PPP 在本質上被視為一次性的，這是可以理解的，但我們將精力集中在利用該業務線的優勢來建立經常性盈利能力。我們的淨利息收入（不包括購買力平價）從 2019 年的 2.77 億美元增加到 2022 年令人印象深刻的 5.65 億美元。我們的相關經常性盈利能力隨著我們的每股收益（不包括購買力平價）在同一時期增長了 2.5 倍以上而大幅增加.

We achieved this growth without raising $1 of equity and diluting our shareholders. All of this came through organic growth supported by PPP revenues. With that, I'd like to pass it to Carla to walk through our financials in more detail.

我們在沒有籌集 1 美元股本和稀釋股東權益的情況下實現了這一增長。所有這一切都來自 PPP 收入支持的有機增長。有了這個，我想把它傳遞給 Carla 來更詳細地了解我們的財務狀況。

Thanks, Sam. And good morning, everyone. I'll begin by briefly summarizing our fourth quarter and full year 2022 results as shown on Slides 9 and 10. From an earnings perspective, in fourth quarter 2022, we earned $0.77 in GAAP EPS on net income of $25.6 million. For full year 2022, we earned $6.51 on net income of $218.4 million.

謝謝，山姆。大家早上好。我將首先簡要總結我們第四季度和 2022 年全年的結果，如幻燈片 9 和 10 所示。從收益的角度來看，在 2022 年第四季度，我們的 GAAP 每股收益為 0.77 美元，淨收入為 2560 萬美元。 2022 年全年，我們的淨收入為 2.184 億美元，收入為 6.51 美元。

Our fourth quarter GAAP results were negatively impacted by 2 items. The first, after-tax net losses realized from the sale of available for sale investment securities of $13.5 million or $0.41, which benefits net interest margin in the short term and only has a 1-year earn back. And the second after-tax net losses on PPP loans of $6 million or $0.18 primarily caused by slower forgiveness than expected, leading to higher funding costs and onetime charge-offs of $11 million, net of a $7.5 million gain recognized upon settlement with a PPP loan servicer.

我們第四季度的 GAAP 結果受到 2 個項目的負面影響。首先，出售可供出售投資證券實現的稅後淨虧損為 1350 萬美元或 0.41 美元，這在短期內有利於淨息差，並且只有 1 年的收益。 PPP 貸款的第二筆稅後淨虧損為 600 萬美元或 0.18 美元，主要原因是寬恕比預期慢，導致融資成本更高，一次性註銷 1100 萬美元，扣除與 PPP 結算時確認的 750 萬美元收益貸款服務商。

To provide additional perspective, PPP-related income contributed a positive $0.18 in the third quarter compared to the negative $0.18 this quarter. I'll also highlight that the $11 million of gross charge-offs are before the impact of any contractual indemnities or recoveries we may receive in future periods. After adjusting for these 2 items, Q4 2022 core earnings were $1.37 on $45.3 million, beating internal targets and estimates adjusted for PPP.

為了提供更多視角，與 PPP 相關的收入在第三季度貢獻了 0.18 美元，而本季度為負 0.18 美元。我還要強調，1100 萬美元的總沖銷是在我們未來期間可能收到的任何合同賠償或追償的影響之前。在對這兩項進行調整後，2022 年第四季度核心收益為 4530 萬美元，為 1.37 美元，超過了針對購買力平價調整後的內部目標和估計。

This brings our full year 2022 core earnings to $6.51. As a reminder, included in this amount was a pretax provision benefit of $36.8 million or $0.86 from the loan sale that Jay mentioned earlier, leaving $5.65 of sustainable core earnings for full year 2022, significantly higher than our $4.75 to $5 target and the $4.44 we made in 2021.

這使我們 2022 年全年的核心收益達到 6.51 美元。提醒一下，此數額中包括 3680 萬美元的稅前撥備收益或 Jay 之前提到的貸款出售的 0.86 美元，為 2022 年全年留下 5.65 美元的可持續核心收益，大大高於我們 4.75 美元至 5 美元的目標和我們 4.44 美元的目標2021 年製造。

Net interest margin, excluding PPP, was 2.87% for fourth quarter, lower than our previously guided range of 3% for 2 primary reasons. First, challenges impacting the mortgage industry as a whole, led to an unexpected large outflow of noninterest-bearing deposits from clients in our mortgage warehouse vertical which negatively impacted our fourth quarter margin by roughly 12 basis points; and two, higher average cash balances compressed margin by approximately 3 basis points.

第四季度淨息差（不包括購買力平價）為 2.87%，低於我們之前 3% 的指導範圍，主要原因有兩個。首先，影響整個抵押貸款行業的挑戰導致我們抵押倉庫縱向客戶的無息存款意外大量流出，這對我們第四季度的利潤率產生了大約 12 個基點的負面影響；第二，較高的平均現金餘額將利潤率壓縮了大約 3 個基點。

Turning to the balance sheet. We ended the year with $19.9 billion in core assets, ex PPP, up 22% over the prior year. Our core loan book, ex PPP and grew an impressive 31% year-over-year, ending 2022 at $14.8 billion. This growth was primarily in the low-risk variable rate corporate and specialty banking vertical.

轉向資產負債表。截至年底，我們的核心資產（不包括購買力平價）為 199 億美元，比上年增長 22%。我們的核心貸款賬簿（不包括購買力平價）同比增長 31%，到 2022 年底達到 148 億美元。這種增長主要出現在低風險的可變利率企業和專業銀行業務領域。

I'll discuss in more detail later.

我稍後會更詳細地討論。

Total deposits grew by 8% to $18.2 billion and have more than doubled over the last 3 years. From a profitability standpoint, excluding PPP, our Q4 2022 core ROA was 93 basis points and our adjusted pretax pre-provision ROA was 1.67%. Turning to Slide 11 on loan growth. In fourth quarter 2022, we purposely moderated loan growth that we intend to retain on balance sheet as we think about optimization strategies over our planning horizon.

總存款增長 8% 至 182 億美元，在過去 3 年中翻了一番多。從盈利能力的角度來看，不包括 PPP，我們 2022 年第四季度的核心 ROA 為 93 個基點，我們調整後的稅前撥備前 ROA 為 1.67%。轉到有關貸款增長的幻燈片 11。在 2022 年第四季度，我們在考慮規劃範圍內的優化策略時，有意降低了我們打算保留在資產負債表上的貸款增長。

Our Q4 2022 held-for-investment loan growth was about $300 million, of which $200 million was in our low-risk variable rate corporate and specialty banking vertical, which prices at roughly 300 basis points over so far. Year-over-year, this vertical increased $2.2 billion and ended 2022 at $7.2 billion. Moving on to deposits on Slide 12. Total deposits increased $1.4 billion in 2022 and ended the year at $18.2 billion, up 18% year-over-year.

我們 2022 年第四季度持有的投資貸款增長約為 3 億美元，其中 2 億美元來自我們的低風險可變利率企業和專業銀行業務垂直領域，到目前為止，它們的價格約為 300 個基點。與去年同期相比，這一垂直領域增加了 22 億美元，到 2022 年底達到 72 億美元。轉到幻燈片 12 上的存款。2022 年總存款增加 14 億美元，年底達到 182 億美元，同比增長 18%。

Notably, 57% of total deposits are sticky transaction-related DDAs. Consistent with the challenging deposit environment industry-wide, we experienced a negative mix shift and higher funding costs in the fourth quarter, primarily from several larger institutional customers that we were previously able to hold at lower levels. Our core deposit pipelines remain robust, particularly in the verticals that Sam mentioned earlier, as we continue to build out our relationship-based deposit franchise. Turning to Slide 13.

值得注意的是，總存款的 57% 是與交易相關的粘性 DDA。與整個行業充滿挑戰的存款環境一致，我們在第四季度經歷了不利的組合轉變和更高的融資成本，主要來自我們之前能夠保持在較低水平的幾個較大的機構客戶。隨著我們繼續建立基於關係的存款特許經營權，我們的核心存款渠道依然強勁，尤其是在 Sam 之前提到的垂直領域。轉到幻燈片 13。

We had another strong year of interest-earning asset growth with interest-earning assets up 22% year-over-year. Notably, we have $1.5 billion of lower-yielding PPP loans and available-for-sale securities, which can be reinvested at roughly a 400 basis point higher yield in 2023. Moving to Slide 14. This slide shows a trend of increasing net interest income, excluding PPP over the past 5 years, largely driven by strong organic growth in our corporate and specialty banking vertical.

我們又迎來了生息資產強勁增長的一年，生息資產同比增長 22%。值得注意的是，我們有 15 億美元的低收益 PPP 貸款和可供出售證券，可以在 2023 年以高出約 400 個基點的收益率進行再投資。轉到幻燈片 14。這張幻燈片顯示了淨利息收入增加的趨勢，不包括過去 5 年的 PPP，這在很大程度上是由我們的企業和專業銀行業務垂直領域強勁的有機增長推動的。

In 2022, we continue to experience strong growth in our NII ex PPP, which was up 33% year-over-year.

2022 年，我們的 NII ex PPP 繼續強勁增長，同比增長 33%。

This growth outpaced the 22% annual growth rate we experienced over the past 4 years. The right side of that page also shows significant margin expansion since 2018 and highlights our disciplined loan pricing strategy despite the remix into lower credit risk lending verticals. Turning to Slide 15. This slide really showcases our effective and disciplined expense management. Despite significant asset and NII growth, We've more than doubled our asset size since 2018 our core noninterest expenses have only increased 9% annually.

這一增長超過了過去 4 年 22% 的年增長率。該頁面的右側還顯示了自 2018 年以來的顯著利潤率增長，並強調了我們嚴格的貸款定價策略，儘管重新組合到較低信用風險的貸款垂直領域。轉到幻燈片 15。這張幻燈片真實地展示了我們有效且有紀律的費用管理。儘管資產和 NII 顯著增長，但自 2018 年以來，我們的資產規模增加了一倍多，我們的核心非利息支出每年僅增長 9%。

This has resulted in a significant decrease in our efficiency ratio, down from 63% in 2018 to 43% in 2022, highlighting our positive operating leverage. Moving to capital on Slide 16. Our regulatory capital levels remain within our targeted operating ranges and well above required regulatory well-capitalized minimums. Our TCE ratio was down slightly during the quarter, given loan growth and slightly higher AOCI losses. Our AOCI adjusted TCE ratio was 7.2% at year-end.

這導致我們的效率比顯著下降，從 2018 年的 63% 下降到 2022 年的 43%，凸顯了我們積極的經營槓桿。轉到幻燈片 16 上的資本。我們的監管資本水平保持在我們的目標運營範圍內，遠高於監管資本充足的最低要求。鑑於貸款增長和略高的 AOCI 損失，本季度我們的 TCE 比率略有下降。年底，我們的 AOCI 調整後 TCE 比率為 7.2%。

Slide 17 highlights significant tangible book value accretion over the past 5 years despite $165 million of increased unrealized losses deferred in AOCI. Our tangible book value at year-end 2022 was just under $39, up approximately 5% from last year despite nearly $5 of negative impact from AOCI. This significantly outpaces our mid-cap peers. Without AOCI, we would have ended this year at nearly $44. And with that, I'll turn it over to Andy to talk more about asset quality.

幻燈片 17 突出顯示了過去 5 年有形賬面價值的顯著增長，儘管 AOCI 遞延的未實現虧損增加了 1.65 億美元。儘管 AOCI 帶來了近 5 美元的負面影響，但我們在 2022 年底的有形賬面價值略低於 39 美元，比去年增長了約 5%。這大大超過了我們的中型股同行。如果沒有 AOCI，我們今年的收盤價將接近 44 美元。有了這個，我會把它交給安迪更多地談論資產質量。

Thanks, Carla. And good morning, everyone. As Sam and Carla referenced earlier, the bank's organic loan growth has been low-to-no credit risk verticals as noted on Slide 18. 70% of the bank's total loan book and 90% of its loan growth is in verticals that have experienced low-to-no credit losses, and this remains our strategy moving forward.

謝謝，卡拉。大家早上好。正如 Sam 和 Carla 之前提到的那樣，如幻燈片 18 所示，該銀行的有機貸款增長在信用風險垂直領域一直處於低水平甚至無水平。該銀行 70% 的總貸款賬簿和 90% 的貸款增長都在經歷過低風險的垂直領域- 到沒有信用損失，這仍然是我們前進的戰略。

By continuing to lever our strong underwriting standards and remaining focused on these strong credit segments, we are confident that our performance within these verticals will remain extremely strong as evidenced to date, by the limited lifetime loss rates noted for our funds finance, multifamily, mortgage warehouse and equipment finance business lines, all of which are mature and have been in existence at the bank for at least 7 years.

通過繼續利用我們強大的承保標準並繼續專注於這些強大的信貸領域，我們相信我們在這些垂直領域的表現將保持極其強勁，正如迄今為止所證明的那樣，我們的基金融資、多戶家庭、抵押貸款的終身損失率有限倉庫和設備金融業務條線，均已成熟且在銀行已存在至少 7 年。

Moving to Slide 19. Credit quality remains strong as evidenced by NPLs of only $31 million or 19 basis points of total loans.

轉到幻燈片 19。不良貸款僅為 3100 萬美元或占貸款總額的 19 個基點，證明信貸質量依然強勁。

NPAs to total assets of just 15 basis points A continued decline in total special mention and substandard loans in both the dollar and percentage of total loans perspective. And most importantly, as it represents a more real-time assessment of portfolio performance Total 30- to 89-day delinquencies were a modest 35 basis points. Looking solely at the commercial loan portfolio, which comprises over 85% of the bank's total loan book, total 30 to 89 delinquencies were minimal 24 basis points.

NPA 對總資產的影響僅為 15 個基點 從美元和占貸款總額的百分比來看，特別關注和次級貸款總額持續下降。最重要的是，因為它代表了對投資組合績效的更實時評估，30 至 89 天的拖欠總額僅為 35 個基點。僅看佔銀行總貸款賬面 85% 以上的商業貸款組合，總計 30 至 89 筆拖欠率最低為 24 個基點。

Moving to net charge-off. Net charge-off figures in the core commercial and consumer portfolios were in line with expectations. Total net commercial charge-offs were only 8 basis points. While the 2.53% net charge-off rate for the consumer portfolio was higher than that of Q3. It is well in line with our portfolio by portfolio vintage loss curves and was fully anticipated as the underlying portfolios naturally season. Although pleased with how well our commercial and consumer portfolios have performed, we remain committed to the following: first, maintaining a strong reserve position as evidenced by a robust 425% coverage of total NPLs.

轉向淨沖銷。核心商業和消費者組合的淨沖銷數字符合預期。淨商業註銷總額僅為 8 個基點。而消費者組合的 2.53% 淨註銷率高於第三季度。它與我們的投資組合的投資組合復古損失曲線完全一致，並且作為基礎投資組合的自然季節是完全預期的。儘管對我們的商業和消費者投資組合的表現感到滿意，但我們仍致力於以下幾點：首先，保持強大的儲備頭寸，不良貸款總額覆蓋率達到 425% 就證明了這一點。

Second, adhering to our strong underwriting and portfolio management standards; and third, remaining committed to our low to no credit risk portfolio strategy I previously noted. Wrapping up based on continued strong credit metrics, and a portfolio comprised predominantly of loans to no to low credit risk verticals, strong portfolio management with ongoing loan-level stress testing, limited exposure to high-risk credit segments such as investment Cree office and investment Cree retail, which stand at only $132 million and $180 million in total exposure, respectively.

其次，堅持我們強大的承銷和投資組合管理標準；第三，繼續致力於我之前提到的低信用風險或無信用風險的投資組合策略。基於持續強勁的信用指標進行總結，投資組合主要由無至低信用風險垂直貸款組成，通過持續的貸款水平壓力測試進行強大的投資組合管理，對高風險信貸領域（如投資 Cree 辦公室和投資）的敞口有限Cree 零售業的總風險敞口分別僅為 1.32 億美元和 1.8 億美元。

A continued strategy of not lending into discretionary spending dependent verticals -- we are confident that our loan portfolio is well positioned moving forward. Again, thank you for your time this morning. And I'd now like to turn the presentation over to Sam.

不向依賴可自由支配支出的垂直行業提供貸款的持續戰略——我們相信我們的貸款組合在未來處於有利地位。再次感謝您今天早上的時間。現在我想把演示文稿交給 Sam。

Thanks, Andy and Carla. Now to connect some of the dots and bring it all together on Slide 20, we wanted to provide a fair amount of guidance in our 2023 outlook to assist with modeling. While much uncertainty remains in the coming year, we believe we are very well positioned to navigate the environment we see ahead. Although our lending opportunities remain strong, you've heard we will be looking to even further moderate our overall growth and project low to mid-single-digit loan growth in 2023. This is excluding PPP.

謝謝，安迪和卡拉。現在，為了將一些點連接起來並將它們放在幻燈片 20 上，我們希望在我們的 2023 年展望中提供大量指導以協助建模。儘管來年仍存在許多不確定性，但我們相信我們已做好充分準備來駕馭未來的環境。儘管我們的貸款機會依然強勁，但您聽說我們將尋求進一步放緩我們的整體增長，並預計 2023 年將實現低至中個位數的貸款增長。這不包括購買力平價。

We expect a relatively flat balance sheet overall as we will reinvest cash from PPP loans and securities runoff as they roll into higher yielding loans. On the deposit side, our growing pipelines will help us remix as we expect to shed higher-cost deposits throughout the year. It is worth noting that in January, we informed a material amount of our market-sensitive depositors that we will not be increasing their rates any further in 2023. And so far, we have not seen any related outflows.

我們預計總體資產負債表將相對平穩，因為我們將把 PPP 貸款和證券流出的現金再投資到收益率更高的貸款中。在存款方面，我們不斷增長的管道將幫助我們重新組合，因為我們預計全年將擺脫成本較高的存款。值得注意的是，在 1 月份，我們通知了大量對市場敏感的儲戶，我們不會在 2023 年進一步提高他們的利率。到目前為止，我們還沒有看到任何相關的資金外流。

Moving to full year NIM. We see this in the 2.85% to 3.05% range. We expect our noninterest expense to decline in the year, including the effect of BMT and expect to deliver $6 to $6.25 in EPS. On our core noninterest expense, excluding BMT, we would expect that to be less than 10% growth for the year. I would note that NIM and EPS are expected to be lower in the first half of the year with margin and earnings expansion expected in the second half of the year.

轉向全年 NIM。我們在 2.85% 到 3.05% 的範圍內看到了這一點。我們預計今年我們的非利息支出將下降，包括 BMT 的影響，並預計每股收益將達到 6 至 6.25 美元。對於我們的核心非利息支出，不包括 BMT，我們預計今年的增長率將低於 10%。我要指出的是，NIM 和 EPS 預計將在今年上半年降低，而利潤率和盈利預計將在下半年擴大。

Even with the limited growth, we expect over a 15% ROE with capital ratios in line with the industry and well above regulatory thresholds.

即使增長有限，我們預計股本回報率將超過 15%，資本比率與行業一致並遠高於監管門檻。

While a share buyback is typically lowest in our waterfall of capital actions, we want to reiterate that we are committed to materially improving our valuation and by moderating our growth, focusing on capital, profitability and funding costs, all while buying back stock likely aggressively. We plan to begin buying soon as soon as our trading window opens on Monday. As a reminder, we have 1.9 million shares remaining under our previously authorized program. And through our guidance, you can see we have ample capital available through organic growth and retained earnings to complete the program without growing our balance sheet.

雖然股票回購通常是我們資本行動瀑布中最低的，但我們要重申，我們致力於實質性地提高我們的估值並通過緩和我們的增長，關注資本、盈利能力和融資成本，同時可能會積極回購股票。我們計劃在周一的交易窗口一打開就開始購買。提醒一下，根據我們之前授權的計劃，我們還有 190 萬股股票。通過我們的指導，您可以看到我們有足夠的資金通過有機增長和留存收益來完成該計劃，而無需增加我們的資產負債表。

We expect our tangible book value to be above $45 by year-end, which is a 15% growth rate over the next few quarters and a Cubby Evaluation conversions to book value or higher due to these action implies at least a 50% valuation upside from recent trading levels.

我們預計到年底我們的有形賬面價值將超過 45 美元，這是未來幾個季度 15% 的增長率，並且由於這些行動，Cubby 評估轉換為賬面價值或更高意味著至少有 50% 的估值上漲空間最近的交易水平。

To wrap it up on Slide 21 let me summarize what we've shared with you this morning. As you've heard today, we are well positioned to manage the risks of the dynamic market environment. We will be moderating our growth to improve our margins, capital ratios and profitability. Credit quality, as you heard from Andy, has and will be at the center of every decision we make, and our capital ratios are very much in line with our peer group. We have a formidable balance sheet with available liquidity of over $9 billion and are well positioned to support our buyback.

為了在幻燈片 21 上結束它，讓我總結一下我們今天早上與您分享的內容。正如您今天所聽到的，我們完全有能力管理動態市場環境的風險。我們將放緩我們的增長，以提高我們的利潤率、資本比率和盈利能力。正如您從安迪那裡聽到的那樣，信用質量已經並將成為我們做出的每一個決定的核心，我們的資本比率與我們的同行群體非常一致。我們擁有強大的資產負債表，可用流動資金超過 90 億美元，並且有能力支持我們的回購。

I'm proud to work with a very forward thinking management team but has a proven track record of driving exceptional financial performance, and we are proud that we have leapfrogged the industry in tech strategy and tech capabilities. We will have an opportunity to showcase this by delivering on fee income and low-cost deposit generation. Finally, as we've said a couple of times, we have to take firm action with conviction, and we will be commencing what we expect will be a significant buyback immediately.

我很自豪能與一個非常有遠見的管理團隊一起工作，但在推動卓越的財務業績方面有著良好的記錄，我們為我們在技術戰略和技術能力方面超越了行業而感到自豪。我們將有機會通過提供費用收入和低成本存款生成來展示這一點。最後，正如我們多次說過的那樣，我們必須堅定地採取堅定的行動，我們將立即開始我們預期的大規模回購。

We are hopeful that this will lay the foundation for a significant share price outperformance in 2023 for our investors. I'll now turn it back to Jay for a few concluding comments.

我們希望這將為我們的投資者在 2023 年的股價表現大幅領先奠定基礎。現在，我將把它轉回 Jay 以作一些總結性評論。

Yes. Thank you very much, Sam. And before we open it up for Q&A, I'd also like to recognize our team members who are executing superbly and they are helping us build this very strong foundation for continued exceptional performance. And we are in outstanding shareholder performance over the first couple of years. In 2022, we delivered you heard another outstanding year of financial performance and with the strength of our credit profile, as you heard from Andy, the capital and liquidity position, as Sam to summarize, as the differentiated model that all of my colleagues talked about, we believe we are very (technical Difficulties] With that, can you please.

是的。非常感謝你，山姆。在我們打開問答環節之前，我還想表彰我們的團隊成員，他們的表現非常出色，他們正在幫助我們為持續出色的表現打下堅實的基礎。我們在頭幾年的股東表現出色。 2022 年，我們讓您聽到了又一個出色的財務業績年度，並且憑藉我們的信用狀況，正如您從 Andy 那裡聽到的那樣，資本和流動性狀況，正如 Sam 總結的那樣，作為我所有同事談論的差異化模型，我們相信我們非常（技術困難）有了這個，你能不能。

(Operator Instructions) Your first question comes from the line of Michael Perito from KBW.

（操作員說明）您的第一個問題來自 KBW 的 Michael Perito。

This is Mike's associate, Andrew filling in. I just wanted to ask for a little more color on the margin guide in 2023. Is it just the slower growth that you mentioned as you're feeling like you can stabilize the NIM or are you expecting relative to relatively lower your incremental funding costs near term beyond just that core customer base that you mentioned that you're holding at their current rate.

我是 Mike 的同事，Andrew 正在填補。我只是想在 2023 年的保證金指南中要求更多的顏色。這只是你提到的增長放緩，因為你覺得你可以穩定 NIM 還是你期待相對於近期你的增量融資成本相對較低，而不僅僅是你提到的以當前利率持有的核心客戶群。

Andrew, I can give some background on that. First of all, when we're thinking about margin and net interest income, we're really focused on growing net interest income based on low-risk growth rather than focusing specifically on a NIM target or an ideal beta. Practically, all our deposits are corporate or institutional deposits and only a very small percentage are consumer deposits that have virtually no corresponding branch expenses which, in our opinion, should be factored into the total cost of deposits.

安德魯，我可以提供一些背景知識。首先，當我們考慮保證金和淨利息收入時，我們真正關注的是基於低風險增長的淨利息收入增長，而不是專門關注 NIM 目標或理想貝塔。實際上，我們所有的存款都是公司或機構存款，只有很小一部分是消費者存款，幾乎沒有相應的分行費用，我們認為應該將其計入存款總成本。

To put some specificity around this, our noninterest expense to average earning assets was 50 basis points below the mid-cap bank average, highlighting that our structural cost advantages and most rate environments. With higher deposit costs in mind, we've continued our disciplined pricing strategy, requiring a spread between 300 and 350 basis points over the projected funding costs. As we've referenced before, we have $1.5 billion of lower-yielding PPP loans and AFS securities that can be reinvested in the coming year at 400 basis points incremental spread.

具體來說，我們的非利息支出占平均盈利資產的比重比中型銀行平均水平低 50 個基點，這凸顯了我們的結構性成本優勢和大多數利率環境。考慮到更高的存款成本，我們繼續採用嚴格的定價策略，要求與預計融資成本相差 300 至 350 個基點。正如我們之前提到的，我們有 15 億美元的低收益 PPP 貸款和 AFS 證券，可以在來年以 400 個基點的增量利差進行再投資。

Now specific to our guidance, we're expecting the full year to be between 2.85% and 3.05% with tighter margins in the front half of the year and expansion margins in the back half of the year.

現在具體到我們的指導，我們預計全年利潤率將在 2.85% 和 3.05% 之間，上半年利潤率收緊，下半年利潤率擴張。

Great. And then secondly, Sam, I was wondering if you had any additional update on CBIT. Are you guys slowing down there and kind of seeing how the regulatory piece plays out or the deposit is just kind of less valuable here because you can't leverage them?

偉大的。其次，Sam，我想知道你是否有關於 CBIT 的任何其他更新。你們是不是在那裡放慢腳步，看看監管部分是如何發揮作用的，或者存款在這裡價值不高，因為你不能利用它們？

Sure. So our CBIT balances actually grew by about $400 million in the quarter. So we ended with $2.3 billion at the end of December. And as you can probably appreciate, given some of the industry dynamics, we saw significant customer interest? And also, that sort of translated into growth and activity on CBIT. To your question about sort of waiting and seeing our related deposits are under 15% of total deposits. We did add 90 new customers in the fourth quarter, ending at 391 total customers. But importantly, we're growing some of our key anchor customers there and payments activity and associated noninterest-bearing deposits will that will translate into better deposit costs as the year progresses.

當然。因此，本季度我們的 CBIT 餘額實際上增長了約 4 億美元。因此，我們在 12 月底以 23 億美元結束。正如您可能理解的那樣，考慮到一些行業動態，我們看到了顯著的客戶興趣？而且，這種轉化為 CBIT 的增長和活動。關於您關於觀望的問題，我們的相關存款不到總存款的15%。我們在第四季度確實增加了 90 個新客戶，最終客戶總數達到 391 個。但重要的是，我們在那裡增加了一些主要的固定客戶，支付活動和相關的無息存款將隨著時間的推移轉化為更好的存款成本。

Awesome. Appreciate the color there. And then just lastly for me. What would you outline at the strategic priorities for the next year, given it was a pretty volatile Q4 for any fintech and digitally focused companies and the macro for 2023 kind of remains uncertain at this point?

驚人的。欣賞那裡的顏色。最後對我來說。考慮到對於任何以金融科技和數字為重點的公司來說，第四季度都是相當不穩定的，而且 2023 年的宏觀經濟在這一點上仍然不確定，您會在明年的戰略重點中概述什麼？

Sure. So I think we laid that out pretty clearly in our outlook and our guidance. And while we see -- we're seeing sort of strength in our customer base, we're also seeing an opportunity for very strong loan pipelines that we are necessarily capitalizing on because we think it's very important that customers bank, specifically to focus on capital and profitability.

當然。所以我認為我們在我們的展望和指南中非常清楚地闡述了這一點。雖然我們看到 - 我們看到了我們的客戶群的某種力量，但我們也看到了我們必須利用的非常強大的貸款渠道的機會，因為我們認為客戶銀行非常重要，特別是專注於資本和盈利能力。

In terms of our guidance, you could have seen us grow by an extra dollar of EPS and an extra 15, 20 basis points. So NIM, if we broaden, as Carla mentioned, the higher margin loan growth on top of our incremental marginal cost of deposits, but we thought it would be much more prudent for us to slow that growth, focus on profitability, build capital support the stock and reduce our share count from an EPS perspective.

就我們的指導而言，您可能會看到我們的每股收益增加一美元和增加 15、20 個基點。所以 NIM，如果我們像 Carla 提到的那樣，在我們增加的存款邊際成本之上擴大更高的保證金貸款增長，但我們認為我們放慢增長、關注盈利能力、建立資本支持會更加謹慎從每股收益的角度來看，股票並減少我們的股票數量。

And to your question about the macroeconomic environment, it's -- there's a lot of uncertainty that I think that we all are seeing, we are hopeful that the market is right, that the market has turned a little bit in the past 30 to 60 days in terms of looking at the data and we're hopeful that there's an opportunity that there can be a soft landing -- however, we're not necessarily planning on it, but we are hoping for it.

關於你關於宏觀經濟環境的問題，我認為我們都看到了很多不確定性，我們希望市場是正確的，市場在過去 30 到 60 天內有所轉變就查看數據而言，我們希望有機會實現軟著陸——但是，我們不一定要計劃，但我們希望如此。

(Operator Instructions) Your next question comes from the line of Bill Dezellem from Titan Capital Management.

（操作員說明）您的下一個問題來自 Titan Capital Management 的 Bill Dezellem。

I'd like to start with PPP loans, if we could. Would you please discuss the $11 million charge-off and the opportunity to recover that, given that we think the PPP loans are government guaranteed. So can you walk through the dynamics of all that, please?

如果可以的話，我想從 PPP 貸款開始。鑑於我們認為 PPP 貸款是政府擔保的，請您討論一下 1100 萬美元的沖銷以及收回它的機會。那麼，你能了解一下所有這些的動態嗎？

Sure, Bill. I'd be happy to do that. Just to begin, I just wanted to level set. So we had $10.5 billion of PPP loans in total, of which $9 billion has been repaid forgiven or guaranteed by the SBA. In the fourth quarter, there was a discrete population of $11 million of loans that really came from 2 PPP loan servicers that we worked with.

當然，比爾。我很樂意那樣做。剛開始，我只是想設置水平。因此，我們總共有 105 億美元的 PPP 貸款，其中 90 億美元已由 SBA 免除或擔保償還。在第四季度，有 1100 萬美元的離散貸款實際上來自與我們合作的 2 個 PPP 貸款服務商。

The first we had disclosed a settlement with one of them in October, and we had $7.5 million that we were expected to cover any potential losses for one reason or another where there would not be an SBA guarantee. And in the fourth quarter, we did have roughly $8 million, so that was largely neutral. For the remaining $3 million, we still have contractual indemnities with our PPP partner that would allow us to recover any losses to the extent that the borrower did not pay those underlying loans. So we think this is largely behind us, but thought it was prudent to take the charge-off in the fourth quarter.

第一個是我們在 10 月份披露了與其中一個的和解協議，我們有 750 萬美元，預計我們將在沒有 SBA 擔保的情況下彌補任何潛在的損失。在第四季度，我們確實有大約 800 萬美元，所以這在很大程度上是中性的。對於剩餘的 300 萬美元，我們仍然與我們的 PPP 合作夥伴有合同賠償，這將使我們能夠在藉款人未支付這些基礎貸款的情況下彌補任何損失。所以我們認為這在很大程度上已經落後於我們，但認為在第四季度取消收費是明智的。

A finer point on that, Bill, just -- we either have had -- already had associated revenue against the charge-off or we have contractual indemnification, but we are being conservative and prudently add into provision.

一個更好的觀點，比爾，只是 - 我們要么已經 - 已經有針對沖銷的相關收入，或者我們有合同賠償，但我們正在保守並謹慎地增加撥備。

And Bill, I'll just remind.

比爾，我只是提醒一下。

Understood.

明白了。

For the life-to-date program, we made over $8 from the PPP program, increasing our risk-weighted ratios, capital ratios by roughly 180 basis points.

對於生命週期計劃，我們從 PPP 計劃中賺取了超過 8 美元，將我們的風險加權比率和資本比率提高了大約 180 個基點。

Right. And so just to be clear, the $11 million charge-off and the $7.5 million recovery those 2 are actually related to each other and as opposed to being independent.

正確的。所以需要明確的是，這兩個項目的 1100 萬美元沖銷和 750 萬美元回收實際上是相互關聯的，而不是相互獨立的。

That's right, Bill. They are related to each other, but from an accounting perspective, they are not netted in the same financial statement line item. So you'll see the $8 million in provision expense and within noninterest income, you'll see a $7.5 million gain on settlement.

沒錯，比爾。它們彼此相關，但從會計的角度來看，它們不在同一財務報表行項目中。因此，您將看到 800 萬美元的撥備費用和非利息收入，您將看到 750 萬美元的結算收益。

That's really helpful. And then shifting to the CBIT. Where are you at with adding additional verticals beyond the crypto industry?

這真的很有幫助。然後轉向 CBIT。在加密貨幣行業之外增加額外的垂直領域，你在哪裡？

Thanks, Bill. Good question. So we have and are active with customers across our commercial base. We have added new verticals that we've previously talked about. We're working to explain the benefits of the 24/7, 365 payments. It's a bit of a longer play. However, it's a question of when, not if, and I think it's allowing us to attract in some cases, customer bases and customer verticals that do not exist at Customers Bank today, which is a very interesting and exciting for us.

謝謝，比爾。好問題。因此，我們在我們的商業基礎上擁有並積極與客戶打交道。我們添加了之前討論過的新垂直領域。我們正在努力解釋 24/7、365 付款的好處。戲有點長了。然而，這是一個時間的問題，而不是是否，我認為它允許我們在某些情況下吸引今天客戶銀行不存在的客戶群和客戶垂直，這對我們來說非常有趣和令人興奮。

And there are no further questions at this time. I'll turn the call back over to Jay Sidhu for some closing remarks.

目前沒有其他問題。我會將電話轉回給 Jay Sidhu，請他發表一些結束語。

Thanks so much. This is Sam. I'll wrap up. I think Jay was having some technical difficulties. Thank you so much, everyone, for your time and your interest in Customers Bank. We're very pleased with our financial results in 2022 and really excited to deliver on our outlook for 2023.

非常感謝。這是山姆。我會結束的。我認為傑伊遇到了一些技術困難。非常感謝大家抽出寶貴時間和對 Customers Bank 的關注。我們對 2022 年的財務業績感到非常滿意，並且非常高興能夠實現我們對 2023 年的展望。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。