Customers Bancorp Inc (CUBI) 2024 Q1 法說會逐字稿

Thank you for standing by. My name is Gail, and I will be your conference operator today. At this time, I would like to welcome everyone to the Customers Bancorp, Inc., Q1 2024 earnings call. (Operator Instructions) I would now like to turn the conference over to David Patty communications, Director of credit for Customers Bancorp, you may begin.

謝謝你的支持。我叫蓋爾，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Customers Bancorp, Inc. 2024 年第一季財報電話會議。（操作員說明）現在我想將會議轉交給客戶銀行公司信貸總監戴維·帕蒂 (David Patty communications)，您可以開始了。

Thank you, Joe, and good morning, everyone. Thank you for joining us for the Customers Bancorp Earnings Call for the First Quarter of 2024. The presentation deck you will see during today's webcast has been posted on the investor's web page of the bank's website at customers, bank.com. You can scroll to Q. one 24 results and click download presentation. You can also download a PDF of the full press release at that 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 documents before we begin, we would 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. 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. Copies may be obtained from the SEC or by visiting the Investor Relations section of our website.

謝謝你，喬，大家早安。感謝您參加我們的客戶 Bancorp 2024 年第一季財報電話會議。您將在今天的網路廣播中看到的簡報已發佈在銀行客戶銀行網站（bank.com）的投資者網頁上。您可以捲動到問題一 24 個結果，然後按一下下載簡報。您也可以在該地點下載完整新聞稿的 PDF 版本。我們的投資者演示包括我們將在今天早上的網路廣播中介紹的重要細節。我鼓勵您在我們開始之前下載並使用這些文件，我們想提醒您，我們今天所做的一些聲明可能被視為前瞻性聲明這些前瞻性聲明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會導致實際情況的發生。請注意，這些前瞻性聲明僅代表截至本簡報發布之日的情況，我們不承擔根據新資訊或未來事件更新這些前瞻性聲明的義務。除適用證券法要求的範圍外，請參閱我們向 SEC 提交的文件，包括我們的 10 K 表格和 10 Q 表格，以取得可能影響我們結果的風險因素的更詳細說明。副本可從 SEC 或造訪我們網站的投資者關係部分取得。

At this time, it is my pleasure to introduce Customers Bancorp CHAIR, Jay Sidhu.

這次，我很高興向您介紹客戶 Bancorp 主席 Jay Sidhu。

Jay?

傑伊？

Thank you, Dave, and good morning, ladies and gentlemen. On this beautiful spring morning. Welcome to Customers Bancorp's 2024 first quarter earnings call. Joining me this morning are President and CEO of customers, bank, Sam Sidhu, and Customers Bancorp CFO, Phil Watkins. Please join me in welcoming and congratulating fell on his promotion to customers. Bancorp CFO. We want to thank Carla Leybold, our former CFO for their years of service and wish her well, I will provide some introductory comments and then my colleagues will provide details of the quarter at the conclusion of our prepared prepared remarks. We will forward we look forward to answering your questions.

謝謝戴夫，女士們先生們早安。在這個美麗的春天的早晨。歡迎參加 Customers Bancorp 的 2024 年第一季財報電話會議。今天早上和我一起的還有客戶銀行總裁兼執行長 Sam Sidhu 和 Customers Bancorp 財務長 Phil Watkins。請和我一起歡迎並祝賀他晉升為客戶。銀行財務長。我們要感謝我們的前財務長 Carla Leybold 多年的服務，並祝她一切順利。我們將期待回答您的問題。

Let's move to Slide 3. Before we address our first quarter results, I just wanted to take a moment to briefly recap some of our positive trends over the past few years and one very significant activity that we announced in the recent press release, which we expect to have a material positive impact on our future performance in our presentation last quarter, we highlighted the delivery on the promises we made to you five years ago ago across items like capital, tangible book value growth, profitability and risk management. While I won't go through all of them. I will highlight the incredible effort and results from our team members as we continue to strengthen our franchise, especially transform our deposit franchise. While we have made significant strides, especially in 2023. Our opportunity in 2024 looks even stronger. On that note, we are incredibly excited about the recent announcement we made about hiring 10 new high performing business and commercial banking teams from legacy Signature Bank. We expect this will accelerate the execution of our strategic priorities, especially helping to make take the quality of our deposit franchise to the next level. These teams have an incredible track record with decades of experience working together serving an awesome client base. We are so excited to welcome our new colleagues and their business to customers bank and providing both with a platform to succeed. We had another extremely strong, strong quarter in our business unit deposit growth, exceeding EUR1 billion, which we again used to reduce our wholesale certificates of deposits. Our capital levels continue to strengthen with TCETA. ratio increasing to 7.3% and our CET. one ratio increasing to 12.5%. We have confidence in our ability to achieve the 7.5% TCE to TA very shortly soon. And we established we had established that goal earlier in the year, and we expect to put some excess CET1 capital to work with relationship-based loan growth this year.

讓我們轉到投影片 3。在我們討論第一季業績之前，我只想花點時間簡要回顧一下過去幾年我們的一些積極趨勢，以及我們在最近的新聞稿中宣布的一項非常重要的活動，我們預計這將產生實質性的正面影響在上個季度的演示中，我們強調了我們五年前在資本、有形帳面價值增長、盈利能力和風險管理等方面向您做出的承諾的兌現情況。雖然我不會全部介紹。我將強調我們的團隊成員在我們繼續加強我們的特許經營權，特別是轉變我們的存款特許經營權時所付出的令人難以置信的努力和成果。雖然我們已經取得了重大進展，特別是在 2023 年。2024 年我們的機會看起來更加強勁。在這一點上，我們對最近宣布從傳統 Signature Bank 招募 10 名新的高績效企業和商業銀行團隊感到非常興奮。我們預計這將加速我們策略重點的執行，特別是有助於將我們存款業務的品質提升到一個新的水平。這些團隊擁有令人難以置信的業績記錄，擁有數十年的合作經驗，為出色的客戶群提供服務。我們非常高興地歡迎我們的新同事及其業務加入客戶銀行，並為雙方提供成功的平台。我們的業務單位存款成長又經歷了一個極其強勁的季度，超過 10 億歐元，我們再次用它來減少我們的批發存款證。透過 TCETA，我們的資本水準持續增強。比率增加到 7.3%，我們的 CET 也增加了。其中一項比率增至12.5%。我們有信心很快就能實現 7.5% 的 TCE 轉化為 TA。我們在今年稍早就已經確定了這一目標，我們預計今年將一些多餘的 CET1 資本用於支持基於關係的貸款成長。

Asset quality remains very strong and our NPL ratio at 17 basis points and our we have ample reserve coverage. We remain very optimistic about the year with strong and growing loan and deposit pipelines we are in an enviable position to continue to take market share and our new business and commercial banking teams serve to further accelerate and enhance those prospects.

資產品質仍然非常強勁，不良貸款率為 17 個基點，而且我們擁有充足的準備金覆蓋率。我們對今年仍然非常樂觀，貸款和存款管道強勁且不斷增長，我們處於令人羨慕的位置，可以繼續佔據市場份額，而我們的新業務和商業銀行團隊將進一步加速和增強這些前景。

Let's move to Slide 4. Again, we reiterate our proper priorities to you, which broadly remain unchanged. We will continue to maintain a roughly flat balance sheet in 2024. However, we will execute disciplined loan growth of 10% to 15%, in line with our previous guidance and focused on holistic client relationships. In fact, our loan growth in April alone exceeded our entire Q. one loan beginning on slide 5, you can see some of the key metrics we focus on and which we believe differentiate the top-performing banks. These include growth in revenue, EPS and tangible book value per share. We have recorded more than 15% annualized growth on each of these metrics over the last five years and revenues have grown two times the expenses we have accomplished this performance without raising a single dollar of common equity and diluting our existing shareholders.

讓我們轉到投影片 4。我們再次向您重申我們的適當優先事項，這些優先事項總體上保持不變。2024年我們將繼續維持大致持平的資產負債表。然而，我們將按照我們先前的指導方針並專注於整體客戶關係，嚴格執行 10% 至 15% 的貸款成長。事實上，我們僅 4 月的貸款成長就超過了我們從幻燈片 5 開始的整個第一季貸款，您可以看到我們關注的一些關鍵指標，我們認為這些指標可以區分錶現最好的銀行。其中包括營收、每股盈餘和每股有形帳面價值的成長。在過去的五年裡，我們的每項指標的年化成長率都超過了15%，收入的成長是支出的兩倍，我們在沒有籌集一美元普通股並稀釋我們現有股東的情況下實現了這一業績。

I want to express our gratitude and thanks to all the team members that make up Customers Bancorp for their hard work and dedication to serving our clients. Our people are what drives customer bank success as they work day-in and day-out to make our customers say wow. I know our new team members are totally aligned to that vision, as Sam and I have had the opposite the opportunity to meet each and every one of them over the last several weeks before I pass the call on to my colleagues, I also want to welcome Kelly module to the call. Kelly joins from KBW, where she recently assumed coverage of Customers Bancorp, and we look forward to collaborating and working with Kelly going forward.

我要向 Customer Bancorp 的所有團隊成員表示感謝，感謝他們的辛勤工作和奉獻精神，為我們的客戶提供服務。我們的員工是推動客戶銀行成功的動力，他們日復一日地工作，讓我們的客戶讚歎不已。我知道我們的新團隊成員完全符合這個願景，因為在我將電話轉達給我的同事之前，山姆和我在過去幾周里有機會與他們每一個人見面，我也想歡迎凱利模組來電。Kelly 在加入 KBW 之前，她最近負責 Customers Bancorp 的報道，我們期待與 Kelly 繼續合作。

With that, I'll turn it over to Sam to cover the key activity and results of the quarter in much more detail.

這樣，我將把它交給 Sam，更詳細地介紹本季的關鍵活動和結果。

Thanks, Jay, and wishing everyone a good morning as well.

謝謝傑伊，也祝大家早安。

Moving to slide 6, as we reflect back on the one year anniversary of the events of March of 2023. While the banking industry has faced tremendous headwinds, Customers Bank was able to capitalize on the challenges and has emerged as one of the biggest beneficiaries of the disruption, we have been able to take advantage of opportunities because we were already well positioned heading into the events having laid the groundwork in 2022 across key safety and soundness metrics like interest rate risk, credit risk and liquidity, having already diversified and repositioned our securities loan and deposit portfolio after ensuring our customer and deposit base was sound, we quickly pivoted to offense and bid on multiple processes with the FDIC and just weeks following the outset of the crisis, we were awarded the Venture Banking loan portfolio from the FDIC at a substantial but fair discount. We were also able to capitalize on the opportunity to fill the void left in the wake of the bank failures last year, which has put both customers and teams in motion in specific verticals in which we had already established expertise and brand recognition to put the size of the deposit disrupted opportunity into perspective. Remember, these banks had collectively over 500 billion in total deposits, even if you assumed all of our 4 billion of deposit business unit growth over the last 12 months came from these banks, it would still only represent less than 1% of those deposits. And all along the way, we have been adding exceptional talent, whether that was our with our Venture Banking team, creating national client coverage or the recruitment of our Chief Credit and marketing officers or the head of our treasury management from much larger institutions. The key is we have remained on our front foot despite industry setbacks, which brings me to the significant opportunity, which presented itself in the first quarter of this year to onboard 10 new banking teams, which I'll cover more in the next slide. We've been talking about our desire to continue on our trajectory of adding commercial deposit, focused banking teams for some time. Now we're thrilled to let you know that what started as a recruitment effort of a few strong top deposit teams beginning last year eventually transitioned to an application process of top New York City metro and West Coast banking teams, which we previously announced. The end result is that we've been able to onboard what we believe to be the top available teams in the New York and West Coast regions. These banking teams had many options when selecting the best bank to serve their clients and opted to join customers bank for a number of reasons. We share a similar single point of contact client-centric mindset that these bankers historically applied to build their long-standing relationships. We have an entrepreneurial culture and offer them a platform with the products, services and technology to provide the highest level of service to their clients. And we continue to have some of the best strength and financial performance in the industry, which has been important for teams as well as their customers. The teams had well in excess of 10 billion in deposit balances before the crisis and thousands of clients. Let me repeat that. They had well over 10 billion in high-quality deposit portfolios. We feel strongly that they will be able to replicate their success over time at Customers Bank. While we're making significant investment in the teams we expect it to drive meaningful franchise value through the addition of substantial amount of high quality, low cost, primary relationship-based and granular deposits. We expect this investment will increase our payroll expense by about 8 to 10 million per quarter. However, we expect incremental revenues to fully offset these expenses within 12 months, which is a very attractive return on invest. We believe that there will be meaningful net interest margin benefits, mainly through reduced interest expense from remixing deposits. We expect this to provide significant EPS accretion of about 10% in 2025, and we expect to achieve this while continuing to deliver double digit tangible book value per share growth, the opportunities we capitalized on over the past several years and in 23 were exceptional. Jay already highlighted the incredible returns that we had for our company and shareholders, and we are even more excited about our current prospects with these teams in 2024 and beyond.

前往投影片 6，我們回顧 2023 年 3 月事件一週年。雖然銀行業面臨巨大的阻力，但客戶銀行能夠利用這些挑戰，並成為此次顛覆的最大受益者之一，我們能夠利用機遇，因為我們在應對這些事件時已經做好了充分的準備2022 年，我們在利率風險、信用風險和流動性等關鍵安全性和穩健性指標上奠定了基礎，在確保我們的客戶和存款基礎良好後，我們已經多元化並重新定位了我們的證券貸款和存款投資組合，我們迅速轉向進攻和投標經過與 FDIC 的多個流程處理，危機爆發後僅幾週，我們就以大幅但公平的折扣從 FDIC 獲得了風險銀行貸款組合。我們也能夠利用這個機會來填補去年銀行倒閉後留下的空白，這使客戶和團隊都在特定的垂直領域中行動起來，在這些垂直領域中，我們已經建立了專業知識和品牌認知度，可以將規模存款擾亂機會的前景。請記住，這些銀行的存款總額總計超過 5000 億美元，即使你假設過去 12 個月我們所有 40 億美元的存款業務單位增長都來自這些銀行，它仍然只佔這些存款的不到 1%。一路走來，我們一直在增加傑出人才，無論是我們的風險銀行團隊、創建全國客戶覆蓋範圍，還是從更大的機構招聘我們的首席信貸和營銷官或我們的財務管理負責人。關鍵是，儘管行業遭遇挫折，我們仍然保持領先地位，這給我帶來了重大機遇，今年第一季出現了 10 個新銀行團隊的加入，我將在下一張幻燈片中詳細介紹這些機遇。一段時間以來，我們一直在談論我們希望繼續增加商業存款、集中銀行團隊的軌道。現在，我們很高興地告訴您，從去年開始的一些強大的頂級存款團隊的招募工作最終轉變為我們之前宣布的紐約市頂級地鐵和西海岸銀行團隊的申請流程。最終的結果是，我們已經能夠加入我們認為是紐約和西海岸地區最好的團隊。這些銀行團隊在選擇為其客戶提供服務的最佳銀行時有很多選擇，並出於多種原因選擇加入客戶銀行。我們有著類似的以客戶為中心的單點聯繫理念，這些銀行家過去曾運用這種理念來建立長期關係。我們擁有創業文化，為他們提供產品、服務和技術的平台，為客戶提供最高水準的服務。我們持續擁有業內最好的實力和財務業績，這對團隊及其客戶都很重要。危機前，這些團隊的存款餘額遠超過 100 億美元，擁有數千名客戶。讓我重複一遍。他們擁有超過 100 億美元的優質存款組合。我們堅信，隨著時間的推移，他們將能夠在客戶銀行複製他們的成功。雖然我們對團隊進行了大量投資，但我們希望它能夠透過增加大量高品質、低成本、基於主要關係的細粒度存款來推動有意義的特許經營價值。我們預計這項投資將使我們每季的工資支出增加約 800 至 1000 萬美元。然而，我們預計增量收入將在 12 個月內完全抵消這些費用，這是非常有吸引力的投資回報。我們認為，淨利差將產生有意義的收益，主要是透過重新混合存款來減少利息支出。我們預計這將在2025 年實現每股收益約10% 的顯著增長，並且我們預計在實現這一目標的同時，繼續實現每股兩位數的有形賬面價值增長，我們在過去幾年和23年所利用的機會非常出色。Jay 已經強調了我們為公司和股東帶來的令人難以置信的回報，我們對這些團隊在 2024 年及以後的前景感到更加興奮。

Moving to Slide 8. Here, we provided the quarter's financial highlights on a GAAP basis and on slide 9, we have provided on a core adjusted basis in the quarter, we earned $1.40 in GAAP EPS on 45.9 million of net income. Adjusted core EPS was $1.68 on five and EUR55 million of net income in our adjusted core ROCE. and ROA. were 14.5% and 1.11% respective. As you heard from Jay credit card quality remained strong as evidenced by our NPE ratio of just 17 basis points.

轉到投影片 8。在這裡，我們提供了基於GAAP 基礎的本季度財務亮點，在幻燈片9 中，我們提供了本季度核心調整後的基礎上，我們在4590 萬美元的淨利潤中賺取了1.40 美元的GAAP 每股收益。調整後核心每股收益為 1.68 美元，調整後核心 ROCE 淨利潤為 5500 萬歐元。和資產報酬率。分別為14.5%和1.11%。正如您從 Jay 那裡聽到的那樣，信用卡品質仍然強勁，我們的 NPE 比率僅為 17 個基點就證明了這一點。

Moving to Slide 10 and the strength of the franchise. As you heard from Jay we once again generated business unit deposit growth of about 1 billion for the fourth consecutive quarter. We once again used this production to repay higher-cost wholesale CDs. We experienced growth in multiple commercial verticals, including mortgage finance, fund finance and our New York and venture banking teams, who opened more than 800 commercial accounts in the quarter. We continued with our positive noninterest-bearing mix shift and increase these deposits by 266 million in the quarter and increased the percent of total deposits now up to 26%. We continue to focus on the stability of the deposit franchise as insured collateralized and affiliate deposits ended the quarter at 78% of total deposits. The growth we achieved was a team effort across the franchise. Once again, more than 20 of our deposit channels saw growth in the quarter. About half of these deposit channels experienced growth of 25 million or more demonstrating the broad-based nature and quality of our deposit transformation.

轉向幻燈片 10 和特許經營權的實力。正如您從 Jay 那裡聽到的那樣，我們再次連續第四個季度實現了約 10 億的業務單位存款成長。我們再次用這個產品來償還​​成本較高的批發CD。我們在多個商業垂直領域經歷了成長，包括抵押貸款融資、基金融資以及我們的紐約和風險銀行團隊，他們在本季度開設了 800 多個商業帳戶。我們繼續實施積極的無息組合轉變，本季存款增加了 2.66 億，佔存款總額的百分比目前已提高至 26%。我們繼續關注存款業務的穩定性，因為本季末受保抵押存款和附屬存款佔總存款的 78%。我們實現的成長是整個特許經營團隊的共同努力。我們的 20 多個存款管道再次在本季實現成長。其中約一半的存款管道增加了 2,500 萬或更多，證明了我們存款轉型的廣泛性和品質。

Now let's move to Slide 11. Here we highlight the success we had in generating growth in business unit deposits as well as the de-emphasis in wholesale funding. Over the past 12 months, we reduced the amount of wholesale CDs by 66% and borrowings by over 40% wholesale CDs as a percentage of total deposits dropped by 20 percentage points and borrowings as a percent of total liabilities are down by five percentage points. These now stand at 10% and 8%, respectively.

現在讓我們轉到投影片 11。在這裡，我們強調我們在業務單位存款成長以及不再重視批發融資方面所取得的成功。過去12個月，我們將批發存款減少了66%，借款減少了40%以上，批發存款佔存款總額的比例下降了20個百分點，借款佔負債總額的比例下降了5個百分點。目前，這一比例分別為 10% 和 8%。

In line with industry averages.

與行業平均一致。

Despite our branch-light business model, we are incredibly proud of the reduction we've achieved in such a short time frame that under normal circumstances could take as much as a decade or require disruptive and dilutive M&A and in an effort to achieve sooner, despite another quarter of over 1 billion of success, our deposit pipeline has been more than replenished to over 2 billion, which we would expect to be onboarded this year. And we expect our deposit pipeline on a go-forward basis to be continuously replenished at these levels while the opportunity remains to further reduce some higher-cost wholesale CDs going forward, we see an excellent opportunity to start remixing higher cost business unit deposits with more attractively priced and granular deposits with the wholesale funding transformation nearly complete.

儘管我們的業務模式是輕分支機構，但我們對在如此短的時間內實現的減少感到非常自豪，在正常情況下可能需要長達十年的時間，或者需要破壞性和稀釋性的併購，並且為了盡快實現這一目標，儘管又取得了超過 10 億美元的成功，但我們的存款管道已經補充到超過 20 億美元，我們預計今年將達到這一目標。我們預計我們的存款管道將在這些水平上不斷補充，同時仍有機會進一步減少一些成本較高的批發CD，我們看到了一個絕佳的機會，可以開始將成本較高的業務單位存款與更多的存款重新混合。

Let's turn to slide 12, where I'll expand on the next phase of our deposit transformation. Our existing channels continue to have strong momentum and have replenished pipelines despite strong continued performance in the first quarter. As you heard, this has been led by our Venture Banking fund finance and New York Community and banking teams while it's too early to provide specifics on what our new business and commercial banking teams can deliver for our bank and investors, we want to share an illustrative analysis of potential outcomes pipeline balances from our business and commercial banking teams will have a healthy non-interest bearing DDA mix, which will we will use to pay off higher-cost deposits, reducing remixed interest-bearing deposit costs by a blended rate between 150 to 250 basis points is realistic. And if achieved, would have a meaningful impact on our net interest income as well as our cost interest-bearing and total deposits. This NII impact here assumes we continue to keep the balance sheet and our deposit flattish and excludes the eventual benefit of ultimately deploying excess liquidity into loans. This demonstrates the strength of the customer relationships of our new business and commercial banking teams and why we are confident in the investments required to bring these bankers into customers back. Just as importantly, the granularity of these deposits will significantly improve the strength and the value of our deposit franchise.

讓我們轉向投影片 12，我將在其中詳細介紹下一階段的存款轉型。儘管第一季業績持續強勁，但我們現有的通路仍持續保持強勁勢頭，並補充了通路。正如您所聽到的，這是由我們的風險銀行基金財務以及紐約社區和銀行團隊領導的，雖然現在提供有關我們的新業務和商業銀行團隊可以為我們的銀行和投資者提供什麼的具體信息還為時過早，但我們希望分享對潛在結果的說明性分析我們的業務和商業銀行團隊的通路餘額將擁有健康的無息DDA 組合，我們將用它來償還成本較高的存款，透過混合利率降低重新混合的帶息存款成本150到250個基點是現實的。如果實現的話，將對我們的淨利息收入以及計息成本和存款總額產生重大影響。這裡的NII影響假設我們繼續保持資產負債表和存款持平，並排除最終將過剩流動性投入貸款的最終好處。這證明了我們新業務和商業銀行團隊的客戶關係的實力，以及為什麼我們對將這些銀行家帶回客戶所需的投資充滿信心。同樣重要的是，這些存款的粒度將顯著提高我們存款業務的實力和價值。

With that, I'd like to turn the call over to Phil to provide additional detail.

因此，我想將電話轉給菲爾，以提供更多詳細資訊。

Thanks, Sam. I'll start on Slide 13, where you can see that while total HFI loan balances remained relatively flat, up about $60 million. In the quarter, we had over 200 million of growth in our corporate and specialized banking verticals, which is about 13% on an annualized basis. This was partially offset by maturities and prepayments in our community banking verticals and the continued tactical runoff of our consumer installment HFI portfolio. Our loan pipelines are extraordinarily robust and will only grow with the new banking teams. Our outlook of 10% to 15% loan growth in 2024 remains intact. We have clear visibility into a pipeline of more than $500 million getting booked in the second quarter, and we're seeing and converting great opportunities across the franchise.

謝謝，山姆。我將從投影片 13 開始，您可以看到雖然 HFI 貸款餘額總額保持相對平穩，但增加了約 6000 萬美元。本季度，我們的企業和專業銀行垂直業務成長超過 2 億美元，年化成長率約為 13%。這部分被我們社區銀行垂直領域的到期日和預付款以及我們消費者分期付款 HFI 投資組合的持續戰術性流失所部分抵消。我們的貸款管道非常強勁，並且只會隨著新的銀行團隊的加入而成長。我們對 2024 年貸款成長 10% 至 15% 的預期保持不變。我們對第二季預訂的價值超過 5 億美元的管道有清晰的了解，並且我們正在整個特許經營中看到並轉化巨大的機會。

On Slide 14, we tried to provide more information than usual around our NI drivers to help walk the NI bridge. As you may recall, loans and securities were reduced by about $1 billion late in the fourth quarter as we allowed some less strategic assets to roll. As a result, interest income declined in the first quarter due to overall lower balances of these higher yielding interest interest-earning assets for the second quarter in a row, we had a decline in our interest expense. Our total cost of funding remained roughly flat during the quarter, helped by the lower level of average FHLB advances outstanding. The reduction in interest earning asset balances I mentioned, coupled with strong deposit activity, resulted in higher average cash balances, which also contributed to a decline in our net. This was largely due to the measured pace of replacing the loans that exited late in Q4 with net originations of higher yielding loans. We remain disciplined, extending credit for holistic relationships, and we also reserve balance sheet capacity for the new teams. Additionally, we had the full quarter impact of replacing the service deposits that were classified as noninterest-bearing with interest bearing deposits. We remain confident in our ability to achieve our full year name target. Given our liquidity position and the strength of both our loan and deposit pipelines and expect meaningful expansion from here with or without a change in rates by the Fed.

在幻燈片 14 中，我們嘗試提供比平常更多的有關 NI 驅動程式的信息，以幫助行走 NI 橋。您可能還記得，由於我們允許滾動一些戰略性較低的資產，第四季度末貸款和證券減少了約 10 億美元。因此，由於這些高收益生息資產的餘額連續第二季整體下降，第一季利息收入下降，我們的利息支出有所下降。由於 FHLB 未償預付款平均值較低，本季我們的總融資成本基本上保持不變。我提到的生息資產餘額的減少，加上存款活動的強勁，導致平均現金餘額增加，這也導致我們的淨額下降。這主要是由於以高收益貸款的淨發放取代第四季末退出的貸款的謹慎步伐。我們保持紀律，為整體關係提供信用，我們也為新團隊保留資產負債表能力。此外，我們以計息存款取代了無息服務存款，對整個季度產生了影響。我們對實現全年名稱目標的能力仍然充滿信心。考慮到我們的流動性狀況以及貸款和存款管道的實力，無論聯準會是否改變利率，預計都會從現在開始進行有意義的擴張。

Moving on to slide 15, we'll discuss some of the components of our first quarter expenses and 2024 outlook. Our adjusted core noninterest expenses decreased to roughly $87.5 million. We incurred a $500,000 increase to the estimated industry-wide FDIC special assessment due to last year's bank failures we recorded. We also recorded an 11.3 million of expense in the first quarter for items that related to periods prior to 2024, which will not be in our run rate expenses going forward.

繼續看投影片 15，我們將討論第一季支出和 2024 年前景的一些組成部分。我們調整後的核心非利息支出減少至約 8,750 萬美元。由於我們記錄的去年銀行倒閉事件，我們預計全行業 FDIC 特別評估增加了 50 萬美元。我們還在第一季記錄了 1130 萬美元的與 2024 年之前相關的項目費用，這些費用不會包含在我們未來的運行費用中。

Finally, as Sam previously mentioned, the new banking teams will add roughly eight to $10 million to our quarterly expense base. And while this will temporarily elevate our efficiency ratio we expect incremental revenues to fully offset these expenses within 12 months.

最後，正如 Sam 之前提到的，新的銀行團隊將為我們的季度支出基礎增加約 800 到 1000 萬美元。雖然這將暫時提高我們的效率，但我們預計增量收入將在 12 個月內完全抵消這些費用。

We had made significant investments over the last few years, building out our infrastructure to be prepared for such an opportunity. We made these investments with the foresight that they would be necessary to take the franchise to the next level. We believe it's prudent to invest in the business in a disciplined way to generate long-term shareholder value. We have always committed to only making investments that generate revenue of at least two times EXPENSES over a reasonable time period. We expect this banking team expansion to meet that criteria and some and should enable us to return to a mid 40s efficiency ratio over the medium term and keep our noninterest expense to average asset ratio at a best-in-class level for the industry.

在過去的幾年裡，我們進行了大量投資，建造了基礎設施，為這樣的機會做好準備。我們進行這些投資時有遠見，認為它們對於將特許經營權提升到一個新的水平是必要的。我們認為，以嚴謹的方式投資業務以創造長期股東價值是明智的做法。我們始終致力於僅進行在合理時間內產生至少兩倍於支出的收入的投資。我們預計銀行團隊的擴張將滿足這一標準和一些標準，並應使我們能夠在中期內恢復到 40 多歲的效率比率，並將我們的非利息支出與平均資產比率保持在行業最佳水平。

Turning to Slide 16. The strategy has not changed in terms of our focus on maintaining robust levels of liquidity combined cash balances and immediately available capacity from the FRB and FHLB increased by about $400 million during the quarter. Our coverage of immediately available liquidity to uninsured deposits is extremely robust at 224%. These levels of liquidity compare favorably to almost anyone in the industry. Also looking at other metrics like loan to deposit and borrowing to total liability ratio, we compare very favorably to regional banks.

轉到投影片 16。我們的策略沒有改變，我們的重點是維持強勁的流動性水平，結合現金餘額以及 FRB 和 FHLB 的即時可用能力，本季增加了約 4 億美元。我們對未投保存款的即時可用流動性的覆蓋率非常強勁，達到 224%。與業內幾乎任何人相比，這些流動性水平都是有利的。另外，從貸存比和借貸與總負債比率等其他指標來看，我們與區域銀行相比非常有利。

On slide 17, we focus on a key driver of shareholder value. Tangible book value per share growth. We have doubled our tangible book value per share over the last five years, growing at a compound annual growth rate exceeding 15%. This compares to less than 4% for our regional bank peers. Our tangible book value per share grew by more than 20% compared to Q1 2023. We also recovered $4.3 million or $0.14 per share of AOCI with over $4 still to be recovered over time.

在投影片 17 中，我們將重點放在股東價值的關鍵驅動因素。每股有形帳面價值成長。過去五年，我們的每股有形帳面價值翻了一番，複合年增長率超過 15%。相較之下，我們的區域銀行同業的比例還不到 4%。與 2023 年第一季相比，我們的每股有形帳面價值成長了 20% 以上。我們還收回了 430 萬美元，即 AOCI 每股 0.14 美元，隨著時間的推移，仍有超過 4 美元有待收回。

Moving to slide 18, similar to the transformation of our deposit franchise, we have transformed our capital position, which has grown significantly for four consecutive quarters, we have grown our CET1 ratio by over 280 basis points over that period. Our TC EBITDA ratio grew by 25 basis points during the quarter, it has increased by 140 basis points over the last year. We remain on track to achieve our approximately 7.5% target this year. While we expect continued accretion to our TCE ratio over the next several quarters. We do anticipate deploying some risk-based capital to support our clients as we generate franchise enhancing and higher-yielding loan growth when adjusting our CET1 ratio for the impact of AOCI, our capital position was again in the top quartile among banks with 10 to $100 billion in assets. And we remain committed to operating the bank with robust levels of capital.

轉向投影片 18，與我們存款業務的轉型類似，我們已經改變了我們的資本頭寸，資本頭寸連續四個季度大幅增長，在此期間我們的 CET1 比率增加了 280 個基點以上。我們的 TC EBITDA 比率在本季度增長了 25 個基點，比去年增長了 140 個基點。我們今年仍有望實現約 7.5% 的目標。我們預計未來幾季我們的 TCE 比率將繼續增加。我們確實預計會部署一些基於風險的資本來支持我們的客戶，因為我們在根據AOCI 的影響調整我們的CET1 比率時會產生特許經營權增強和更高收益的貸款增長，我們的資本狀況再次在銀行中排名前四分之一，為10 至100 美元億資產。我們仍然致力於以穩健的資本水準運作銀行。

On Slide 19, as Jay and Sam highlighted NPAs as a percentage of total assets ended the quarter at just 17 basis points and remain extremely low. Commercial NCOs were down three basis points to just 14 basis points. On a blended basis, our NCOs were 55 basis points, up four basis points from the prior period. I would also highlight that the amount of criticized and classified loans declined by 11% during the quarter. Office commercial real estate, an area perceived an area perceived higher risk accounts for only 1% of our loan portfolio. We also continue to closely monitor our multifamily portfolio and remain confident in our underwriting and the unique attributes of our portfolio. As an example, in the majority New York City rent regulated component, we have less than 55 million of loans that rate reset or mature in 24 and 25, consistent with our strategy to reduce exposure to consumer installment HFI loans. This portfolio now only accounts for about 6% of total loans, down from 7% last quarter.

在幻燈片 19 上，Jay 和 Sam 強調了不良資產佔總資產的百分比，該季度結束時僅為 17 個基點，並且仍然極低。商業 NCO 下降了 3 個基點，至僅 14 個基點。在混合基礎上，我們的 NCO 為 55 個基點，比上一期上升 4 個基點。我還要強調的是，本季受到批評和分類的貸款數量下降了 11%。辦公商業房地產這一被認為風險較高的領域僅占我們貸款組合的 1%。我們也繼續密切關注我們的多戶投資組合，並對我們的承保和投資組合的獨特屬性保持信心。舉例來說，在紐約市大部分受租金監管的部分中，我們有不到 5,500 萬筆貸款在 24 和 25 年內重置或到期，這與我們減少消費者分期 HFI 貸款風險的策略一致。該投資組合目前僅佔貸款總額的 6% 左右，低於上季的 7%。

I'll now pass the call back over to Sam before we open up the line for Q&A.

現在，在我們開通問答線路之前，我會將電話轉回給 Sam。

Thanks, Phil. And we remain committed to and are pleased to reaffirm our loan deposit and capital guidance. We are reiterating our new guidance and expect margin to expand over the course of the year, getting to the high end of our range by year end as stated previously, we do expect that our efficiency ratio will be slightly elevated in the near term as the upfront investments we have made in the teams is realized through increased profitability over a couple of quarters on our profitability metric guidance. We remain committed to targeting these levels now on a run-rate basis by the end of the year as the upfront investment will impact the full year metric.

謝謝，菲爾。我們仍然致力於並很高興重申我們的貸款存款和資本指引。我們重申我們的新指導，並預計利潤率將在今年內擴大，如前所述，到年底達到我們範圍的高端，我們確實預計我們的效率比率將在短期內略有提高，因為我們對團隊進行的前期投資是透過根據我們的獲利指標指導在幾個季度內提高獲利能力來實現的。我們仍然致力於在年底前以運行率為基礎實現這些水平，因為前期投資將影響全年指標。

Concluding on Slide 21, I want to wrap up with a couple of comments. If the enthusiasm during this call was not obvious, let me say, we are extremely excited about the amazing opportunities ahead for both our existing franchise and for the new banking teams. Our existing franchise has built a very strong loan and deposit pipeline, which we expect to be realized starting this quarter and on the new teams, we've admired them from the outside and for many years as friendly competitors with deep industry knowledge and exceptional client relationships. And now we couldn't be more grateful to have them join customers back.

作為投影片 21 的總結，我想以幾點評論作為結束語。如果這次電話會議期間的熱情並不明顯，那麼我想說的是，我們對我們現有的特許經營權和新的銀行團隊所面臨的驚人機會感到非常興奮。我們現有的特許經營權已經建立了非常強大的貸款和存款管道，我們預計從本季度開始實現這一點，而對於新團隊，我們從外部一直欽佩他們，多年來我們一直將他們視為友好的競爭對手，擁有深厚的產業知識和卓越的客戶關係。現在，我們非常感激他們再次加入客戶行列。

We're incredibly excited about what they will deliver in the quarters and years to come.

我們對他們在未來幾個季度和幾年內將提供的服務感到非常興奮。

We have more or less completed phase one of the deposit transformation that we laid the groundwork for several years ago. Phase one, increased our non-interest bearing deposits by almost 2.5 times and brought our wholesale CDs down to just 10% of deposits in the last 12 months. Phase two of our deposit transformation should be even more transformational for our franchise by improving the cost quality, granularity and primacy primacy of our C&I business unit deposits. We have a robust deposit pipeline that we expect to convert this year and remix our higher-cost deposits. This will be a key contributor to improving our net interest margin over the remainder of 24 and beyond.

我們或多或少已經完成了幾年前奠定的基礎的存款轉型的第一階段。第一階段，在過去 12 個月中，我們的無利息存款增加了近 2.5 倍，並將我們的批發 CD 降低至存款的 10%。我們存款轉型的第二階段應該透過提高我們工商業部門存款的成本品質、粒度和首要地位來為我們的特許經營帶來更大的變革。我們擁有強大的存款管道，預計今年將進行轉換並重新混合成本較高的存款。這將成為我們在 24 年剩餘時間及以後提高淨利差的關鍵因素。

Capital liquidity and risk management continue to be the focus of our management team and Board of Directors. We are confident in our ability to perform above the industry in all macroeconomic and credit and interest rate environments with our differentiated business model, client-centric culture and even more talent among our banking and management teams, we believe we are best positioned for success in the years to come as we continue to build out an enviable full-service commercial bank.

資本流動性和風險管理仍然是我們管理團隊和董事會的焦點。我們有信心憑藉我們差異化的業務模式、以客戶為中心的文化以及銀行和管理團隊中更多的人才，我們有能力在所有宏觀經濟和信貸和利率環境中表現優於行業，我們相信我們最有能力在以下領域取得成功：未來幾年，我們將繼續打造一家令人羨慕的全方位服務商業銀行。

With that, I'd like to open the call to any questions you may have.

至此，我想就您可能提出的任何問題開始通話。

(Operator Instructions) Casey Haire, Jefferies.

（操作員說明）Casey Haire，Jefferies。

Please go every day.

請每天都去吧。

Great. Thanks. Good morning, everyone.

偉大的。謝謝。大家，早安。

I wanted to start off on the on the and I guide and guide. So and maybe on the loan side first. So the loan growth guide that you guys are talking about it looks like to be about a 1.5 to 2 billion and over the next three quarters. Just wondering what what your new guide assumes for how that comes across is it fairly ratable and at what yields?

我想從這裡開始，我引導又引導。所以，也許首先是在貸款方面。因此，你們談論的貸款成長指南看起來在未來三個季度約為 150 至 20 億美元。只是想知道你的新指南對這種情況的假設是什麼，它是否具有相當的評級以及收益如何？

Yes, hey, good morning, Casey. And so yes, that's correct. On the aggregate amount, we did provide some guidance as well on the pipeline that are look into on the pipeline that we see executing into Q2. And so I think it it would be fairly fair to assume that it comes over on a relatively even basis over the period.

是的，嘿，早安，凱西。是的，這是正確的。就總量而言，我們確實還提供了一些關於正在研究的管道的指導，我們看到在第二季度執行的管道。因此，我認為假設這段時期的情況相對均勻，是相當公平的。

As far as the the yield on the loans, again, as we've said, the pipeline is predominantly driven by our corporate and specialized lending verticals. And we've always kind of we've always communicated that we tried and target about 300 basis points spread on those products.

就貸款收益率而言，正如我們所說，通路主要由我們的企業和專業貸款垂直領域推動。我們一直在溝通，我們嘗試將這些產品的利差目標定為約 300 個基點。

Okay.

好的。

Very good. All right.

非常好。好的。

And then just switching to the funding side of things, I guess similar a similar amount, right, 1.5 to $2 billion. Is that coming across ratably? And then I know it's early days and you guys are, you know, slide 12 is helpful in terms of what the remix opportunity is, but what does the new guide presume where you guys fall in that spectrum low 150 bps, 200 bps, 200 bps?

然後轉向資金方面，我想類似的金額，對吧，150 到 20 億美元。是不是很受歡迎？然後我知道現在還為時過早，你們知道，幻燈片 12 對於混音機會很有幫助，但是新指南假設你們處於低 150 bps、200 bps、200 的頻譜中的位置是什麼？

Sure. Absolutely, Casey, happy to take that question. So in terms of the pipeline, it's difficult to the loan pipeline.

當然。當然，凱西，很高興回答這個問題。所以從管道上來說，貸款管道是有難度的。

It's very easy to kind of give clarity on sort of term sheet signed and metals out and closings, deposit pipeline is a little bit broader. So we're trying to give some sort of a rough outline here of the deposit pipeline, which grew despite the $1.2 billion of production in the first quarter. So I think that obviously the teams, the new teams are going to be generating a good component of the future. Pipeline execution have really been on the onboarding through the month of April. These things take a little bit of time. We in fact, even had nine or 10 folks start just this week to kind of put things in perspective. Primarily accounts require DDAs require a little bit of time of migrating accounts setting up payroll, payables, et cetera, those types of things.

很容易澄清簽署的條款清單、金屬的出庫和關閉，存款管道要寬一些。因此，我們試圖在這裡給出存款管道的某種粗略輪廓，儘管第一季的產量為 12 億美元，但存款管道仍在增長。所以我認為顯然這些團隊、新團隊將成為未來的重要組成部分。整個 4 月份，管道執行確實已經啟動。這些事情需要一點時間。事實上，我們甚至在本週就開始了九到十個人來正確看待事情。主要是帳戶需要 DDA，需要一點時間來遷移帳戶、設定薪資單、應付帳款等此類內容。

So we'll see it.

所以我們會看到它。

Just I would stick to that the two to three quarters of guidance that we provided on the pipeline to kind of help put that in and then ring-fence it book, it will give you a better update and sort of how things are progressing in July when we have our next call, which will also give clarity on what happened in the quarter, what percentage came from sort of existing teams and new teams and also give you a little bit of a look forward on the second half.

只是我會堅持我們在管道上提供的兩到四分之三的指導，以幫助將其納入然後將其圍起來，這將為您提供更好的更新以及七月份的進展情況當我們進行下一次電話會議時，這也會清楚說明本季發生的情況，來自現有團隊和新團隊的百分比，也會讓你對下半年有一些展望。

Okay.

好的。

Very good.

非常好。

And just last question for me on the PPNR guide. I'm talking about 10% to 15% from the three 67 baseline. And so that's what for us, a little over 400 million of 400, 25. That implies a run rate of a little over 100 million by the fourth quarter. Is that is that what the what you're trying to put out?

這是關於 PPNR 指南的最後一個問題。我說的是三個 67 基線的 10% 到 15%。這就是我們的情況，400 人中的 4 億多一點，25 人。這意味著到第四季的運行率將略高於 1 億。這就是你想要推出的內容嗎？

Yes, that's right. Getting basically to that run rate in the fourth quarter.

恩，那就對了。第四季基本上達到這個運行率。

Got you. Thank you.

明白你了。謝謝。

Thank you.

謝謝。

Your next.

你的下一個。

Your next question comes from the line of Steve Moss of Raymond James.

你的下一個問題來自雷蒙德詹姆斯的史蒂夫莫斯。

Please go ahead.

請繼續。

Good morning.

早安.

Wanted to maybe follow-up here.

也許想在這裡跟進。

One of them just following up here on the on the efficiency ratio.

其中之一隻是專注於效率比。

And then just moving drivers as we think about expenses here, I heard you on the total expenses coming from mid-teens down, but just the case of the efficiency ratio kind of seems like low to mid 50s for this quarter, moderating to maybe the high 40s by time we get to the fourth quarter seems very high 40 sales representatives about right?

然後，當我們考慮這裡的費用時，只是轉移司機，我聽說總費用從十幾歲左右下降，但就本季度的效率比而言，似乎是低至 50 多歲，可能會緩和到當我們到第四季時，40 多歲的銷售代表似乎非常高，大約是40 多歲，對吧？

Yes, that's right.

恩，那就對了。

I think was at 50%, you know, by the by the fourth quarter?

我想到第四季就達到 50%了？

Absolutely.

絕對地。

That's correct.

這是正確的。

Okay.

好的。

And then on the teams you hired here. I realize are deposit rich, but just curious, you know how much of a lending opportunity you have with their client base as well?

然後是你在這裡僱用的團隊。我知道存款很豐富，但只是好奇，您知道您在他們的客戶群中還有多少貸款機會嗎？

Sure. Great question, Steve.

當然。好問題，史蒂夫。

So as you can imagine, these are these teams, as we mentioned, are predominantly deposit focus. However, you know, there are management mines and then C&I extensions of credit that would be needed in some cases to move over primary relationships. That's why we sort of held back and preserve some liquidity in the first quarter.

正如您可以想像的那樣，正如我們所提到的，這些團隊主要關注存款。然而，您知道，有管理礦井，然後是 C&I 信貸延期，在某些情況下需要這些信貸來轉移主要關係。這就是為什麼我們在第一季保留了一些流動性。

So the typical sort of teams in aggregate are about four to six times deposits, too.

因此，典型類型的團隊總共也大約是存款的四到六倍。

Okay.

好的。

Great.

偉大的。

Appreciate that. And then then in terms of where it serves us to fill, I hear you in terms of the C&I and specialty businesses. Maybe just can you give us a little color underneath of what are the big drivers of the pickup in the pipeline?

感謝。然後就我們要填補的領域而言，我聽到您在 C&I 和特種業務方面的說法。也許您能為我們介紹一下皮卡的主要驅動因素是什麼？

Sure.

當然。

Yes, Steve, good morning. I'd say very similar to what we've been talking about for some time. We definitely see great opportunities in our fund finance fund finance verticals. We're also seeing opportunities in healthcare in equipment finance and so it's fairly broad-based across those portfolios, but really pretty consistent with the the key verticals that we've been talking about for some time.

是的，史蒂夫，早安。我想說的與我們一段時間以來所討論的非常相似。我們確實在基金金融領域看到了巨大的機會。我們也在設備融資領域看到了醫療保健領域的機會，因此它在這些投資組合中具有相當廣泛的基礎，但與我們一段時間以來一直在討論的關鍵垂直領域非常一致。

I would just add to close the loop on the loan pipelines. And I think that we continue to see opportunities. The pipeline today has little from from the new teams, and it's still well over $500 million. Phil talked a little bit about sort of the range of where we see this pipeline coming in from and one of the things that we'll continue to explore as the year progresses, given our low CRE concentration, we there may be opportunities in the second half of 24.

我只想補充一下以關閉貸款管道的循環。我認為我們繼續看到機會。目前的通路幾乎沒有來自新團隊的資金，但仍遠遠超過 5 億美元。菲爾談到了我們看到這條管道的來源範圍，以及隨著時間的推移我們將繼續探索的事情之一，鑑於我們的商業地產集中度較低，我們可能在第二年有機會24 的一半。

Okay, great. And maybe if I could squeeze one more in here. Just as we think about the opportunity on deposits, I see the remixing you have and within your balance sheet as funding comes in. Just curious how you're thinking about I know it's still early days, but how you think about 2025 balance sheet on growth?

好的，太好了。或許我可以再擠一個進去。正如我們考慮存款的機會一樣，我看到隨著資金的流入，您的資產負債表也發生了重新混合。只是好奇你如何看待我知道現在還為時過早，但你如何看待 2025 年資產負債表的成長？

Yes, Steve, I think that's a great question.

是的，史蒂夫，我認為這是一個很好的問題。

I think that from the perspective of how we're approaching things today is there's a tremendous amount of deposit remix opportunities, and we'll continue to do that for the course of this year and through early next year, we're generating a tremendous amount of capital as you as you can see over the last 12 months with a flat balance sheet, we're committed to our know first and foremost to hitting our 7.5% TCE target, which as you can see, will likely hit the next quarter or so. And having said that, our loan book is sitting at approximately 13 billion plus or minus. And there's still growth in the loan side that we can do within the same side of the balance sheet and only after our balance sheet on the deposit side, is completely remixed, would we consider increasing from these levels, which I do not anticipate for the next several quarters.

我認為，從我們今天處理事情的角度來看，存在大量的存款重組機會，我們將在今年和明年初繼續這樣做，我們正在產生巨大的收益正如您在過去12 個月中看到的那樣，在資產負債表平坦的情況下，我們致力於首先實現我們7.5% TCE 的目標，正如您所看到的，該目標可能會在下個季度實現或。話雖如此，我們的貸款總額約為 130 億上下。我們可以在資產負債表的同一側實現貸款方面的增長，並且只有在存款方面的資產負債表完全重新混合之後，我們才會考慮從這些水平增加，但我預計這不會出現在資產負債表的同一側。

Great.

偉大的。

Appreciate all the color. Thank you very much.

欣賞所有的顏色。非常感謝。

Your next question comes from the line of Kelly Motta of KBW.

您的下一個問題來自 KBW 的 Kelly Motta。

Please go ahead, Brian.

請繼續，布萊恩。

Good morning and thank you for the warm welcome today and I was hoping you could continue on with the deposit remix on opportunity here. And I think you are have done a tremendous job with the wholesale CDs. Just wondering what through where you know, you still see opportunities to take down higher cost funding either by business line or whatnot and the cost of that, just so we can help better frame the opportunity here.

早安，感謝您今天的熱情歡迎，我希望您能在這裡繼續進行存款混音。我認為你們在批發 CD 方面做得非常出色。只是想知道，透過您所知道的地方，您仍然看到透過業務線或其他方式獲得更高成本融資的機會及其成本，這樣我們就可以幫助更好地建立這裡的機會。

Yes, sure. Absolutely.

是的，當然。絕對地。

So first and foremost, there still remains a wholesale, some wholesale CDs, about 5%. I think for as an example, we have about 500 million plus or minus the next 90 days or so Additionally, there are a number of deposit verticals that have the high end deposits in the 5% plus or minus type range, especially in sort of financial institutions group and some of our digital bank deposits, more focused on digital savings. And those would be the initial pockets that we would look to. So focusing on higher cost access and in some cases, larger relationships to to reduce concentration and improve granularity.

所以首先也是最重要的是，仍然存在批發，一些批發CD，大約5%。我想舉個例子，在接下來的 90 天左右，我們有大約 5 億左右此外，還有許多存款垂直行業的高端存款在 5% 左右類型範圍內，特別是在金融機構集團和我們的一些數字銀行存款，較專注於數位儲蓄。這些將是我們最初尋求的資金來源。因此，專注於更高成本的訪問，在某些情況下，專注於更大的關係，以減少集中度並提高粒度。

Okay. Thank you.

好的。謝謝。

Thank you for that color, Sam. I mean, as we look ahead, you know, I appreciate the color of our C. above targets and your CT. one XAOCI. is on top tier, but it does seem like there's a really nice deposit generation opportunity from these teams. I'm understanding that your balance sheet growth is limited near term as we as we look ahead to next year and beyond, would you anticipate the internal capital generation to be enough to sustain whatever growth does 15th would contribute to the bottom line with deposits and loans?

謝謝你的顏色，山姆。我的意思是，當我們展望未來時，你知道，我很欣賞我們上面的 C 目標和你的 CT 的顏色。一個XAOCI。是頂級的，但這些團隊似乎確實提供了非常好的存款產生機會。據我了解，您的資產負債表成長短期內受到限制，因為我們展望明年及以後，您預計內部資本產生是否足以維持 15 日將有助於存款和利潤的成長貸款？

Yes, absolutely, Kelly. So the simple answer is as our internal calculation, yes, we'll cover future growth.

是的，絕對是，凱利。所以簡單的答案是我們的內部計算，是的，我們將涵蓋未來的成長。

So as an example, if we remix a couple of deposits, a couple of billion dollars of deposits, you know this year, I mean, there's an opportunity to continue to produce a few billion more deposits. Well, RR. internal estimates and consensus estimates show that there's enough capital being generated by bank to sustain that level of growth.

舉個例子，如果我們重新混合一些存款，幾十億美元的存款，你知道今年，我的意思是，有機會繼續產生數十億美元的存款。嗯，RR。內部估計和共識估計表明，銀行有足夠的資本來維持這種成長水準。

Thank you.

謝謝。

So much for the color. I'll step back for one unit.

顏色就這麼多了。我會退後一步。

Welcome to your next question comes from the line.

歡迎您在線上提出下一個問題。

Your next question comes from the line of Peter Winter of D.A. Davidson.

你的下一個問題來自 D.A. 的 Peter Winter。戴維森。

Please go ahead.

請繼續。

Thanks. Good morning. I'm just sticking with the deposits. You guys have done a lot of work on remixing deposits, and I understand that there's still a lot to do. I'm just surprised that the sequential increase in deposit costs has stayed the same past three quarters, same for viability costs. And so the question is, why hasn't it moderated and would you expect deposit costs to actually come down this year even with without rate cuts?

謝謝。早安.我只是堅持用存款。你們在重新混合存款方面做了很多工作，我知道還有很多工作要做。我只是感到驚訝的是，過去三個季度存款成本的連續成長保持不變，生存成本也保持不變。所以問題是，為什麼它沒有放緩？ 即使不降息，您是否預計今年存款成本實際上會下降？

Yes, Peter, good morning. So the answer to your last question is yes, we would expect deposit costs to trend down over the course of this year. The answer to your first question is, is that our interest expense has been declining over the past couple of quarters.

是的，彼得，早安。所以你最後一個問題的答案是肯定的，我們預期今年存款成本將會呈現下降趨勢。第一個問題的答案是，過去幾季我們的利息支出一直在下降。

Including this last quarter, we did have a mix shift in geography with noninterest expense from service deposits, moving up to interest expense in the quarter through the terminated relationship and with our partner that happened in December of last year. So that's really what the difference was from a deposit cost perspective, interest expense went down, which is a key metric.

包括上個季度在內，我們確實在地理位置上發生了混合變化，服務存款的非利息費用，由於去年 12 月發生的終止關係以及與合作夥伴的關係而上升到本季度的利息費用。從存款成本的角度來看，這確實是差異所在，利息支出下降了，這是關鍵指標。

Okay.

好的。

And then just with the 10 new teams coming on focused on deposit generation, I was, I guess, surprised that you didn't change your deposit outlook for the year.

然後，隨著 10 個新團隊開始專注於存款生成，我想，我很驚訝你們沒有改變今年的存款前景。

Sure, Peter. I think that meant we did increase the deposit pipeline.

當然，彼得。我認為這意味著我們確實增加了存款管道。

We also did talk about how the deposit pipeline would be expected to be continuously replenished, which is an impressive number to have on a rolling two to three quarter basis. And as I mentioned, the only question is all really on timing. It does take time to move over operating DDA accounts and relationships. So like I said before, we'll provide a little bit more color on how the how Q2 progressed on our next call, and we'll able to give a lot more color with some clarity on how that pipeline is trending and we hope to continue on this billion-dollar plus type type of quarterly generation.

我們還討論了存款管道將如何持續補充，這是一個令人印象深刻的數字，在滾動的兩到三個季度的基礎上。正如我所提到的，唯一的問題實際上是時間問題。轉移營運 DDA 帳戶和關係確實需要時間。因此，就像我之前說的，我們將在下一次電話會議上提供更多有關第二季度進展情況的信息，並且我們將能夠提供更多信息，明確說明該管道的趨勢，我們希望繼續這種價值十億美元以上的季度發電。

It just my thanks. And just my last question, can you provide more details with regards to the two nonrecurring charges on the deposit servicing fees and these FDIC. premiums prior to 24?

這只是我的感謝。我的最後一個問題是，您能否提供有關存款服務費和 FDIC 兩項一次性費用的更多詳細資訊。 24日前保費？

Sure.

當然。

Hey, Peter, good morning. So on the two items of the first on the FDIC insurance premiums. This was due to the reclassification of certain loans under FDIC. categorizations, but it's important to note that the additional expense was just for the purpose of setting the FDIC premium levels, no impact on our risk ratings, classified asset levels or any other credit metrics of the loans and we went through a comprehensive review and are confident this has been fully addressed. And on the net on the deposit servicing fees from prior periods, we receive some additional information from the servicing partner during the quarter. After completing our analysis, we recorded the expense in Q1 and again, believe it's been fully addressed what recurred going.

嘿，彼得，早安。那麼就第一點關於FDIC保險費的兩項而言。這是由於 FDIC 對某些貸款進行了重新分類。但值得注意的是，額外費用只是為了設定 FDIC 保費水平，對我們的風險評級、分類資產水平或貸款的任何其他信用指標沒有影響，我們經過了全面審查，並相信這個問題已得到充分解決。在網路上，關於前期的存款服務費，我們在本季從服務合作夥伴那裡收到了一些額外資訊。完成分析後，我們記錄了第一季的費用，並再次相信它已經完全解決了重複發生的問題。

Got it.

知道了。

Thanks.

謝謝。

So congratulations Thanks, Peter.

恭喜，謝謝，彼得。

Your next question comes from the line of Frank Schiraldi of Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Frank Schiraldi。

Please go ahead.

請繼續。

Morning on the market, just on the on the efficiency ratio, you talked about obviously the investment and teams and the 50% the end of the year. Just curious your thoughts about how quickly you get back to that mid 40s. Is that kind of the right level for EUV to be operating at at the intermediate or longer term and Hey, Frank, good morning.

早上在市場上，就效率比率而言，您顯然談到了投資和團隊以及年底的 50％。只是好奇你對自己回到 40 多歲的速度有多快有什麼想法。EUV 在中期或長期運行的水平是否合適？

Yes, the answer is yes.

是的，答案是肯定的。

I think that our target hasn't changed this is a short term blip. Like I said before, it's a little difficult to fully project timing, but we expect to get to 50 by the end of the year. And then March down from there and go back to sort of our mid 40s target for next year.

我認為我們的目標沒有改變，這只是短期現象。就像我之前說的，完全預測時間有點困難，但我們預計到今年年底將達到 50 個。然後從那裡開始下降，回到我們明年 40 歲左右的目標。

Okay.

好的。

And on capital, in terms of the CT. one, I guess, target what's your ahead of? I'm just curious if that 11.5% is a reasonable put reasonable place to sort of land on in, call it end 2025 is that also kind of holding more maybe for a potentially uncertain environment? Or is that a decent place to anticipate you guys get to on get down to by 2025?

關於資本，就 CT 而言。我想，你的目標是什麼？我只是好奇這 11.5% 是否是一個合理的投資地點，稱之為 2025 年底，這是否也是在潛在不確定的環境中持有更多股票的原因？或者說，這是一個值得你們在 2025 年開始認真對待的好地方嗎？

A frac that.

一個壓裂。

So yes, I think that both for this year and next year, we think it's prudent at this point in time with the information that we have today to operate with higher CET1 levels. And I think the industry has shown a tremendous amount of discipline along the same lines. So with the information we have today, that feels like a very reasonable assumption.

所以，是的，我認為無論是今年還是明年，我們認為目前根據我們今天掌握的信息，以更高的 CET1 水平進行操作是謹慎的。我認為這個行業也表現出了同樣嚴格的紀律。因此，根據我們今天掌握的信息，這感覺是一個非常合理的假設。

Great.

偉大的。

And then just lastly, on the deposit strategy, kind of entering Phase two here, as you noted, I just wanted to make sure I understood some of the commentary around increasing granularity on is that, you know, has that been more of a focus maybe in the near term than bringing down overall cost of deposits and dumb and can you also talk about maybe some of the concentrations and places that you are reducing concentrations, obviously, outside of just the reduction in wholesale on places you're reducing concentrations in coming quarters. On the deposit side things?

最後，關於存款策略，正如您所指出的，這裡有點進入第二階段，我只是想確保我理解一些關於增加粒度的評論，您知道，這是否更成為焦點也許在短期內會降低存款和愚蠢的整體成本，您是否也可以談談您正在減少集中度的一些集中度和地方，顯然，除了您正在減少集中度的地方的批發量減少之外未來幾個季度。存款方面的事情？

Yes, sure.

是的，當然。

So to be clear, over the last 12 months, we have tremendously improved the granularity of our deposit franchise because the core deposit franchise exiting the wholesale CDs has been we've added thousands of customers, commercial customers. I think we've laid that out pretty well over the past couple of quarters. We had over 800 commercial customers again added to the franchise this quarter, which is a significant increase off of our existing base on a go-forward basis. As I mentioned, these teams that we've that we've onboarded have thousands of customers collectively, which if if onboarded over a one to three year period, could be in a position to double the size of our commercial deposit base, which a commercial customer deposit base, which I think is very important. So granular operating DDA accounts that we are looking to bring in that will create it a tremendous amount of franchise value over.

因此，需要明確的是，在過去 12 個月中，我們大大提高了存款特許經營權的粒度，因為退出批發 CD 的核心存款特許經營權是我們增加了數千名客戶、商業客戶。我認為我們在過去幾個季度已經很好地解決了這一問題。本季我們再次增加了 800 多家商業客戶，這比我們現有的客戶群在未來的基礎上有了顯著的成長。正如我所提到的，我們已經加入的這些團隊總共擁有數千名客戶，如果在一到三年的時間內加入，我們的商業存款基礎規模可能會增加一倍，這商業客戶存款基礎，我認為這一點非常重要。我們希望引入如此精細的營運 DDA 帳戶，這將為其創造巨大的特許經營價值。

Yes.

是的。

I guess just on the commercial side, you know, in terms of commercial deposits, are there any areas that you're looking to or expect to reduce concentrations on specific verticals that you can that you can speak to or is that at this point that that's just not a focus?

我想就商業方面而言，您知道，就商業存款而言，是否有任何領域您希望或期望減少您可以談論的特定垂直領域的集中度，或者在這一點上這不是重點？

Yes, yes. Sorry, I missed that part of the question yet. So that's I think I mentioned financial institutions.

是的是的。抱歉，我還錯過了問題的這一部分。我想我提到了金融機構。

That's an area where we sometimes have some of the larger customers with $25 million plus type deposit relationships. They're generally higher cost and I also mentioned while this is not granular or the higher cost sort of digital bank deposits as well.

在這個領域，我們有時會有一些擁有 2500 萬美元以上存款關係的大客戶。它們的成本通常較高，我也提到過，雖然這不是細粒度的，但數位銀行存款的成本也較高。

Yes.

是的。

Great.

偉大的。

Thank you.

謝謝。

Again, if you'd like to ask a question press star, then the number one on your telephone keypad. Your next question comes from the line of how I go to B. Riley, please, your line is open.

再次強調，如果您想提問，請按星號，然後按電話鍵盤上的數字 1。你的下一個問題來自我如何去 B 的線路。

Hey, good morning.

嗨，早安。

Guys.

夥計們。

I got a question on you don't talk about too much is the consumer part of your loan portfolio?

我有一個問題，您不要過多談論您的貸款組合中的消費者部分嗎？

It's it's come down nicely by design and from my experience in consumer loans right now, there's been that originators and many of these types of installment loans are have tightened many, many times and returns and risk are improving. What would it take to get back into that if you wanted to achieve the need to be fairly easy entry if you wanted it, but wanted to get your thoughts on that if that is something you want to kick it get back into in a bigger, bigger way? Or is this something you want to deemphasize more permanently going forward day?

從我目前在消費貸款方面的經驗來看，它的設計很好，發起人和許多此類分期貸款已經收緊很多很多次，回報和風險都在改善。如果你想要實現相當容易進入的需要，如果你想要它，但想了解你的想法，如果你想把它重新回到一個更大的領域，那麼需要什麼才能回到這個領域？方式？或者你想在未來更永久地不再強調這一點？

Yes, hi, good morning. So I think you are right. There is certainly a stronger risk-adjusted return profile on that product now than there has been in the recent past. But I think we've strategically said we while we we want to emphasize our strengths in that business, and that's why we've transitioned more towards our held for sale strategies where we can similarly play an important role in that product, but without taking the credit risk of holding those loans on our balance sheet. And so that's where we continue to see that you don't see that going forward.

是的，嗨，早安。所以我認為你是對的。該產品現在的風險調整回報率肯定比最近更高。但我認為我們已經從戰略上說過，我們想強調我們在該業務中的優勢，這就是為什麼我們更多地轉向我們的持有待售策略，我們可以在該產品中同樣發揮重要作用，但不採取任何措施在我們的資產負債表上持有這些貸款的信用風險。因此，我們繼續看到你們看不到這種情況的發展。

And I would just add that one of the things that to to build off of the comment Phil made about sort of the strength of our institution versus others is the while While many of these NPLs have improved, improve their underwriting and arguably the risk profile, that's an indirect business and we're focused on a direct business. And from a direct perspective, our strengths rely on the commercial side and B to B is the way that we approach that business as opposed to B to C or yogurt or B to B to C which we had done many years ago.

我想補充一點，菲爾對我們機構相對於其他機構的實力發表的評論的其中一件事是，雖然許多不良貸款已經有所改善，但改善了他們的承保以及可以說的風險狀況，這是一項間接業務，而我們專注於直接業務。從直接的角度來看，我們的優勢依賴於商業方面，B to B是我們處理該業務的方式，而不是我們多年前所做的B to C或酸奶或B to B to C。

Sorry, super.

對不起，超。

Thanks a lot.

多謝。

Your next question comes from the line of Bill Dezellem of Tieton Capital Management.

您的下一個問題來自 Tieton Capital Management 的 Bill Dezellem。

Please go ahead, ma'am.

請繼續，女士。

Thank you. And good morning. Relative to the 10 kilometer that you have brought on. What is the size of the loan portfolio that they appreciate? And I believe you mentioned in the opening remarks, deposits are about $10 billion. What's the what's the loan level?

謝謝。早安.相對於您所行駛的 10 公里而言。他們欣賞的貸款組合規模是多少？我相信你在開場白中提到，存款約為100億美元。貸款水平是多少？

Sure, Bill, the expected or route in rough rough associated loan book is it is under 1 billion and of the of the $10 billion and the 1 billion over the course of, say, a couple of years, which gets us to a much smaller proportion of that, would you expect to bring on sure you cut out a little bit, but I want to clarify.

當然，比爾，粗略的相關貸款帳簿中的預期或路徑是，它低於10 億美元，並且是100 億美元中的一個，並且在幾年內的10 億美元中，這使我們的規模要小得多。

One thing is the loan book was over the sorry, the deposit book was over 10 billion or just prior to last March is a little smaller at the beginning of this year. But over time, we expect that we have an opportunity to bring in the entire current size of the deposit portfolio over the next, call it, three years in the loan side, it's sort of stick a rough estimate that sort of 20% to 30% loan to deposit ratio for these this portfolio.

有一件事是，貸款帳簿已經超過了，抱歉，存款帳簿超過了100億，或者說去年3月份之前今年年初有點小。但隨著時間的推移，我們預計我們有機會在未來三年內將存款組合的整個當前規模引入貸款方面，這有點粗略估計，即 20% 到 30%該投資組合的貸存比%。

Great, thank you. And then last question tied to us with the recent ruling that noncompete agreements are no longer allowed, does that make it easier for these for these teams to bring them.

太好了謝謝。最後一個問題與我們相關，最近的裁決不再允許簽訂非競爭協議，這是否會讓這些團隊更容易簽署這些協議。

Hey, Bill, you cut out again at the end, but I heard the comment about the new ruling and non-competes. And I think what's important about customers, bank and retaining and retaining talent is really do we have the right platform, the right culture, the right business model, the right compensation model to be able to retain and attract top talent that we definitely have. And from a customer perspective, customers follow the teams and then they look to the banks in terms of the same attributes that I just mentioned. And the good news is that we have and will continue to have we tried Essentis.

嘿，比爾，你最後又退出了，但我聽到了關於新裁決和競業禁止的評論。我認為，對於客戶、銀行以及保留和留住人才來說，最重要的是我們是否擁有合適的平台、合適的文化、合適的商業模式、合適的薪酬模式，以便能夠留住和吸引我們確實擁有的頂尖人才。從客戶的角度來看，客戶跟隨團隊，然後他們根據我剛才提到的相同屬性來看待銀行。好消息是我們已經並將繼續嘗試 Essentis。

That concludes the Q&A session. I will now turn the conference back over to Customers Bancorp President, Sam Sidhu for closing remarks.

問答環節到此結束。現在我將把會議轉回客戶銀行總裁 Sam Sidhu 致閉幕詞。

Thank you. I want to conclude by personally thanking our people experienced team, our technology, our operations, our product and our treasury management teams for having so many team members up and running our platform so expeditiously over the past couple of weeks that thank you to all our analysts and investors for your continued interest in and support of Customers Bancorp, and we look forward to speaking to you next four quarters.

謝謝。最後，我想親自感謝我們經驗豐富的團隊、我們的技術、我們的營運、我們的產品和我們的財務管理團隊，感謝你們在過去幾週內讓如此多的團隊成員如此迅速地建立和運行我們的平台，感謝我們所有的員工。

This concludes today's conference call.

今天的電話會議到此結束。

You may now.

你現在可以了。