CVB Financial Corp (CVBF) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Second Quarter 2023 CVB Financial Corporation and its subsidiary Citizens Business Bank Earnings Conference Call. My name is Cherie, and I am your operator for today. (Operator Instructions) Please be advised that today's call is being recorded. I would now like to turn the presentation over to your host for today's call, Christina Carrabino. You may proceed.

早安，女士們、先生們，歡迎參加 2023 年第二季 CVB 金融公司及其子公司公民商業銀行收益電話會議。我叫 Cherie，是今天的接線生。 （操作員說明）請注意，今天的通話正在錄音。現在我想將簡報交給今天電話會議的主持人克里斯蒂娜·卡拉比諾 (Christina Carrabino)。您可以繼續。

Thank you, Cherie, and good morning, everyone. Thank you for joining us today to review our financial results for the second quarter of 2023. Joining me this morning are Dave Brager, President and Chief Executive Officer; and Allen Nicholson, Executive Vice President and Chief Financial Officer.

謝謝你，切麗，大家早安。感謝您今天與我們一起回顧我們 2023 年第二季度的財務業績。今天早上與我一起的有總裁兼首席執行官戴夫·布雷格 (Dave Brager)；執行副總裁兼財務長艾倫‧尼科爾森 (Allen Nicholson)。

Our comments today will refer to the financial information that was included in the earnings announcement released yesterday. To obtain a copy, please visit our website at www.cbbank.com and click on the Investors tab. The speakers on this call claim the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. For a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from our forward-looking statements, please see the company's annual report on Form 10-K for the year ended December 31, 2022, and in particular, the information set forth in Item 1A, risk factors therein. For a more complete version of the company's safe harbor disclosure, please see the company's earnings release issued in connection with this call.

我們今天的評論將參考昨天發布的收益公告中包含的財務資訊。要取得副本，請造訪我們的網站 www.cbbank.com 並點擊「投資者」標籤。本次電話會議的發言者聲稱受到1995 年《私人證券訴訟改革法案》中包含的安全港條款的保護。如需對可能導致實際結果與我們的前瞻性陳述存在重大差異的風險和不確定性進行更完整的討論，請參閱本公司截至 2022 年 12 月 31 日止年度的 10-K 表格年度報告，特別是第 1A 項（其中的風險因素）中列出的資訊。有關該公司安全港披露的更完整版本，請參閱該公司與本次電話會議相關的收益發布。

Now I will turn the call over to Dave Brager. Dave?

現在我將把電話轉給戴夫·布雷格。戴夫？

Thank you, Christina. Good morning, everyone. For the second quarter of 2023, we reported net earnings of $55.8 million or $0.40 per share representing our 185th consecutive quarter of profitability. We previously declared a $0.20 per share dividend for the second quarter of 2023, representing our 135th consecutive quarter of paying a cash dividend to our shareholders.

謝謝你，克里斯蒂娜。大家，早安。 2023 年第二季度，我們報告淨利潤為 5580 萬美元，即每股 0.40 美元，這是我們連續 185 個季度實現盈利。我們先前宣布 2023 年第二季每股股息 0.20 美元，這是我們連續 135 個季度向股東支付現金股息。

Our net earnings of $55.8 million or $0.40 per share compares to $59.3 million for the first quarter of 2023 or $0.42 a share and $59.1 million for the year ago quarter or $0.42 per share. The second quarter demonstrated the bank's financial strength at a time where the industry has seen disruption. Although our net interest margin contracted by 23 basis points compared to the first quarter of 2023, our efficiency ratio was below 41% in the second quarter of 2023. We generated strong returns reflected by a return on average tangible common equity of 18.39% and a return on average assets of 1.36%.

我們的淨利潤為 5,580 萬美元，即每股 0.40 美元，而 2023 年第一季的淨利潤為 5,930 萬美元，即每股 0.42 美元，去年同期淨利潤為 5,910 萬美元，即每股 0.42 美元。第二季度展示了該銀行在該行業遭遇混亂之際的財務實力。儘管我們的淨利差較 2023 年第一季收縮了 23 個基點，但 2023 年第二季的效率仍低於 41%。我們產生了強勁的回報，平均有形普通股回報率為 18.39%，平均資產報酬率為1.36%。

Our pretax, pre-provision return on average assets was 1.91% for the second quarter. For the second quarter, our pretax preprovision income was $78 million compared with $84 million for the prior quarter and $85.7 million earned in the year ago quarter. Total deposits increased by approximately $126 million from the end of the first quarter of 2023 to June 30 without the benefit of brokered deposits.

第二季我們的稅前、撥備前平均資產報酬率為 1.91%。第二季度，我們的稅前撥備收入為 7,800 萬美元，而上一季為 8,400 萬美元，去年同期為 8,570 萬美元。從 2023 年第一季末到 6 月 30 日，存款總額增加了約 1.26 億美元，其中不包括經紀存款的好處。

Our noninterest-bearing deposits continued to be greater than 63% of our total deposits. At June 30, 2023, our total deposits and customer repos were $12.8 billion, an $88 million increase from March 31, 2023. However, deposits and customer repos were lower than the same period a year ago by approximately $1.7 billion or an approximate 12% decline year-over-year. We've experienced $552 million decline in deposits and customer repos from the end of 2022, which includes $550 million that was moved into Citizens Trust where these funds were invested in higher-yielding liquid assets such as treasury notes.

我們的無利息存款繼續佔存款總額的63%以上。截至2023年6月30日，我們的存款和客戶回購總額為128億美元，比2023年3月31日增加了8,800萬美元。然而，存款和客戶回購比去年同期減少了約17億美元，即約12%年減。自 2022 年底以來，我們的存款和客戶回購減少了 5.52 億美元，其中包括轉移到公民信託的 5.5 億美元，這些資金投資於國庫券等收益率更高的流動資產。

The velocity of deposits moving to Citizens Trust declined in the second quarter with approximately $180 million transferred off balance sheet in the quarter compared to $370 million in the first quarter of 2023. The bank continues to acquire new deposit customers and the deposit pipeline has strengthened over the last 3 months. New accounts opened during the first half of 2023 totaled approximately $650 million of new average deposits. We have historically maintained one of the lowest cost of deposits in the industry based on the customers we target and our business model.

第二季存款流入Citizens Trust 的速度有所下降，本季從資產負債表轉出約1.8 億美元，而2023 年第一季為3.7 億美元。該銀行繼續吸引新的存款客戶，存款管道在過去一年裡得到加強。最近 3 個月。 2023 年上半年新開帳戶的新平均存款總額約為 6.5 億美元。根據我們的目標客戶和業務模式，我們歷來一直保持著業內最低的存款成本之一。

Our cost of deposits was 35 basis points on average for the second quarter of 2023, which compares to 17 basis points for the first quarter of 2023 and 3 basis points for the second quarter of 2022. At June 30, 2023, our noninterest-bearing deposits were $7.9 billion compared with $7.8 billion for the prior quarter and $8.9 billion from the year ago quarter. Noninterest-bearing deposits were greater than 63% of total deposits as they have been for the last 5 quarters.

2023 年第二季我們的存款成本平均為 35 個基點，而 2023 年第一季為 17 個基點，2022 年第二季為 3 個基點。截至 2023 年 6 月 30 日，我們的無息存款成本存款為79 億美元，上一季為78 億美元，去年同期為89 億美元。過去 5 個季度，無利息存款佔存款總額的比例超過 63%。

The bank has no broker deposits. Our deposits are 100% core customer relationships across diversified industries. More than 75% of our deposits represent customer relationships that have banked with Citizens Business Bank for 3 or more years. 76% of our deposits are business deposits and our customers typically have operating accounts that by the nature of each of their businesses exceeds the FDIC insurance coverage level of $250,000. Therefore, 52% of total deposits and customer repos were uninsured and uncollateralized at June 30, 2023.

該銀行沒有經紀人存款。我們的存款是跨多元化產業的 100% 核心客戶關係。我們超過 75% 的存款是與公民商業銀行存續 3 年或以上的客戶關係。我們 76% 的存款是商業存款，我們的客戶通常擁有營運帳戶，根據其業務的性質，這些帳戶的金額超過 FDIC 的保險承保水準 250,000 美元。因此，截至 2023 年 6 月 30 日，總存款和客戶回購協議中有 52% 沒有保險和無抵押。

As of the end of the second quarter, the Federal Reserve had increased the Fed funds rate by 500 basis points since April of 2022. The bank's cost of deposits over the same period of time have increased from 3 basis points to 41 basis points for the month of June 2023. The bank failures in March of 2023 brought greater attention to the Fed increases in short-term rates. And of the 38 basis point increase in our cost of deposits from the start of the Fed's rate increase, more than 50% of the increase has been experienced since March of 2023.

截至二季度末，聯準會自2022年4月起已將聯邦基金利率上調500個基點。同期銀行存款成本從3個基點上升至41個基點。2023 年6 月。2023 年3 月的銀行倒閉引發了人們對聯準會短期利率上調的更多關注。自聯準會升息以來，我們的存款成本增加了 38 個基點，其中超過 50% 的增幅是自 2023 年 3 月以來經歷的。

Although the pace of the increase in deposit costs slowed in June, we cannot be certain about the pace of increases in the future, especially as the Fed continues to raise rates as they did yesterday. Total loans at June 30, 2023, were $8.9 billion, a $172 million or 1.9% decrease from the end of 2022. From December 31, 2022, loans declined by $31.9 million after excluding the seasonal increase in dairy and livestock loans and PPP loan forgiveness at year-end.

儘管6月存款成本成長速度有所放緩，但我們無法確定未來的成長速度，尤其是在聯準會像昨天一樣繼續升息的情況下。截至2023 年6 月30 日，貸款總額為89 億美元，較2022 年底減少1.72 億美元，下降1.9%。自2022 年12 月31 日起，扣除乳製品和牲畜貸款的季節性增長以及PPP 貸款減免後，貸款減少了3,190 萬美元年底時。

Dairy and livestock loans decreased by $136 million from December 31, 2022, as we experienced paydowns in the first quarter of each calendar year as a result of the temporary increase we experienced in the fourth quarter of each year. Commercial real estate loans increased by $19 million from the end of 2022 to June 30, while C&I loans increased by approximately $8 million over the same period.

自 2022 年 12 月 31 日起，乳製品和牲畜貸款減少了 1.36 億美元，因為我們在每年第四季度暫時增加，而在每個日曆年第一季都經歷了還款。從 2022 年底到 6 月 30 日，商業房地產貸款增加了 1,900 萬美元，而同期工商業貸款增加了約 800 萬美元。

Declines in construction, SBA and consumer loans totaled $59 million from December 21, 2022, to June 30, 2023. Now let's discuss loans in more detail. Loan growth during the second quarter was impacted by a slowdown in loan demand. Total loans declined by $35 million from the end of the first quarter of 2023 to the end of the second quarter. Commercial real estate, construction and consumer loans declined from the prior quarter, while C&I loans increased as utilization rates improved from 28% at the end of the first quarter to 31% at the end of June.

從 2022 年 12 月 21 日到 2023 年 6 月 30 日，建築業、SBA 和消費者貸款的下降總額為 5,900 萬美元。現在讓我們更詳細地討論貸款。第二季貸款成長受到貸款需求放緩的影響。從 2023 年第一季末到第二季末，貸款總額減少了 3,500 萬美元。商業房地產、建築和消費貸款環比下降，而工商業貸款則增加，利用率從第一季末的28%提高到6月底的31%。

Year-over-year core loan growth was $277 million or approximately 3%. This core loan growth was led by growth in commercial real estate loans, which grew by $260 million or 3.9% year-over-year. Our new loan production weakened in the second quarter. New loan commitments were approximately $240 million in the first quarter of 2023 and approximately $288 million in the second quarter of 2023. In comparison, we originated $604 million of new loans in the second quarter of 2022. New loan production at the end of the second quarter was generated at average yields exceeding 7%.

核心貸款年增 2.77 億美元，增幅約 3%。核心貸款成長主要由商業房地產貸款成長帶動，年增 2.6 億美元，增幅為 3.9%。第二季我們的新增貸款產量已減弱。 2023 年第一季的新貸款承諾約為2.4 億美元，2023 年第二季約為2.88 億美元。相較之下，我們在2022 年第二季發放了6.04 億美元的新貸款。第二季度末的新貸款產生本季的平均收益率超過 7%。

Although we continue to strive to grow loans, our current loan pipeline is at its lowest level in the last 3 years. Although loans declined at quarter end from the end of the first quarter, we recorded a provision for credit losses of $500,000 for the second quarter of 2023 to reflect a further deterioration in our economic forecast. Asset quality continues to be strong, and the trends remain stable. At quarter end, nonperforming assets defined as nonaccrual loans plus other real estate owned were $6.5 million or 4 basis points of total assets. The $6.5 million in nonperforming loans compares to $6.2 million for the prior quarter and $13 million from the year ago quarter.

儘管我們繼續努力增加貸款，但我們目前的貸款管道處於過去三年來的最低水平。儘管季末貸款較第一季末有所下降，但我們為 2023 年第二季的信貸損失計提了 50 萬美元的撥備，以反映我們的經濟預測進一步惡化。資產品質持續強勁，趨勢維持穩定。截至季末，不良資產定義為非應計貸款加上其他擁有的房地產，為 650 萬美元，佔總資產的 4 個基點。不良貸款為 650 萬美元，上一季為 620 萬美元，去年同期為 1,300 萬美元。

During the second quarter, we experienced credit charge-offs of $88,000 and total recoveries of $15,000, resulting in net charge-offs of $73,000 compared with net charge-offs of $77,000 for the first quarter of 2023. Classified loans for the second quarter were $78 million compared with $67 million for the prior quarter and $76 million for the year ago quarter.

第二季度，我們經歷了 88,000 美元的信貸沖銷和總回收額為 15,000 美元，淨沖銷為 73,000 美元，而 2023 年第一季的淨沖銷為 77,000 美元。第二季度的分類貸款為 78 美元上一季度為6,700 萬美元，去年同期為7,600 萬美元。

Classified loans as a percentage of total loans over the last 5 quarters has been consistently less than 90 basis points. The $10.9 million increase in classified loans quarter-over-quarter was primarily due to a $9.7 million increase in classified, commercial real estate loans and a $6.1 million increase in classified dairy and livestock and agribusiness loans, partially offset by a $4.4 million decrease in classified commercial and industrial loans.

過去 5 個季度分類貸款佔貸款總額的百分比一直低於 90 個基點。分類貸款環比增加 1,090 萬美元，主要是由於分類商業房地產貸款增加 970 萬美元，分類乳製品、畜牧業和農業企業貸款增加 610 萬美元，部分被分類貸款減少 440 萬美元所抵消。商業和工業貸款。

The increase in classified loans for the dairy and commercial real estate categories were primarily due to one dairy relationship in which $11 million of dairy and livestock loans and $6 million of owner-occupied commercial real estate loans were downgraded during the second quarter.

乳製品和商業房地產類別分類貸款的增加主要是由於一種乳製品關係，其中 1100 萬美元的乳製品和牲畜貸款以及 600 萬美元的業主自用商業房地產貸款在第二季度被降級。

Commercial real estate loans secured by office buildings has been an area of much attention recently across the banking industry. So we've included additional information related to our office exposure in our July 2023 investor presentation.

辦公室抵押商業房地產貸款近期成為銀行業備受關注的領域。因此，我們在 2023 年 7 月的投資者演示中包含了與我們辦公室風險相關的更多資訊。

A couple of data points regarding our $1.1 billion of office CRE include the granular nature of the portfolio, which is highlighted by the average loan size of less than $1.7 million, 87% of the office CRE loan balances are below $10 million, and we only have one loan greater than $20 million.

關於我們 11 億美元辦公室 CRE 的幾個數據點包括投資組合的粒度性質，突出顯示平均貸款規模低於 170 萬美元，87% 的辦公室 CRE 貸款餘額低於 1,000 萬美元，而且我們只擁有一筆超過2000 萬美元的貸款。

Additionally, 25% of this portfolio is owner-occupied and on average, these loans were originated with loan to values of 55%.

此外，該投資組合中有 25% 為業主自住，平均而言，這些貸款的貸款價值為 55%。

Approximately 13% of the office portfolio will mature over the next 24 months, while an additional 13% of the portfolio will have their interest rates reset during those same 24 months. To visualize where our office portfolio is positioned geographically, we have maps on Pages 33 through 36 of our investor presentation that show the dispersion of our loans and the minimal exposure in the city centers of Los Angeles, San Diego and San Francisco.

大約 13% 的辦公室投資組合將在未來 24 個月內到期，另外 13% 的投資組合將在這 24 個月內重置利率。為了直觀地顯示我們的辦公大樓投資組合的地理位置，我們在投資者簡報的第33 頁至第36 頁上提供了地圖，顯示了我們貸款的分散情況以及在洛杉磯、聖地亞哥和舊金山市中心的最小風險敞口。

In summary, we believe our office CRE portfolio was conservatively underwritten, very granular and not exposed to central business district areas. I will now turn the call over to Allen to discuss the allowance for credit losses, liquidity and capital. Allen?

總而言之，我們認為我們的辦公室商業房地產投資組合是保守承保的，非常細化，並且不涉及中央商務區。我現在將電話轉給艾倫，討論信用損失、流動性和資本的準備。艾倫？

Thanks, Dave. Good morning, everyone. At June 30, 2023, our ending allowance for credit losses was $87 million or 0.98% of total loans, which compares to $86.5 million or 0.97% of total loans at March 31, 2023 and $85.1 million or 0.94% of total loans at December 31, 2022. The allowance for credit losses as a percentage of classified loans was 112% as of June 30, 2023, compared to 108% as of December 31, 2022.

謝謝，戴夫。大家，早安。截至2023年6月30日，我們的期末信貸損失準備金為8,700萬美元，佔貸款總額的0.98%，而2023年3月31日為8,650萬美元，佔貸款總額的0.97%，截至12月31日為8,510萬美元，佔貸款總額的0.94% ，2022年。截至2023年6月30日，信貸損失準備金佔分類貸款的百分比為112%，而截至2022年12月31日為108%。

For the quarter ended June 30, 2023, we reported -- we recorded a provision for credit losses of $500,000 compared to $1.5 million for the quarter ended March 31, 2023, and $3.6 million for the second quarter of 2022. The provision for credit losses in the second quarter was driven by the change in our economic forecast, which resulted in lower projected GDP growth, lower commercial real estate values and higher unemployment when compared to our forecasted both March 31 and the end of 2022.

我們報告稱，截至2023 年6 月30 日的季度，我們記錄了50 萬美元的信貸損失準備金，而截至2023 年3 月31 日的季度為150 萬美元，2022 年第二季度為360 萬美元。第二季的成長是由我們的經濟預測變化所推動的，與我們 3 月 31 日和 2022 年底的預測相比，這導致 GDP 成長預期下降、商業房地產價值下降和失業率上升。

Our economic forecast also resulted in a $400,000 increase in our off-balance sheet reserve at June 30 compared to an increase of $500,000 in the first quarter of 2023. Our economic forecast continues to be a blend of multiple forecasts produced by Moody's. These U.S. economic forecasts include a baseline forecast, a more optimistic forecast as well as numerous downside forecasts. We continue to have the largest individual scenario weighting on the baseline forecast with downside risk weighted among multiple forecasts represent approximately 40% of our overall forecast.

我們的經濟預測也導致我們的表外準備金在6 月30 日增加了40 萬美元，而2023 年第一季增加了50 萬美元。我們的經濟預測仍然是穆迪做出的多項預測的混合。這些美國經濟預測包括基線預測、更樂觀的預測以及眾多的下行預測。我們繼續對基線預測進行最大的個別情境權重，多個預測中的下行風險權重約占我們整體預測的 40%。

As of June 30, 2023, the resulting weighted average forecast assumes GDP will increase by 1.5% in 2023, including a decline in GDP in the second half of this year followed by modest growth of 0.8% for 2024 and then GDP growth 2% for 2025. The unemployment rate is forecasted to be 3.8% in 2023 followed by 5% in both 2024 and 2025. Borrowings as of June 30, 2023, consisted of $695 million from the bank term funding program that we borrowed during the second quarter of 2023 at a rate of 4.7%. These borrowings replaced higher cost borrowings from the Federal Home Loan Bank.

截至 2023 年 6 月 30 日，加權平均預測假設 2023 年 GDP 將成長 1.5%，其中包括今年下半年 GDP 下降，隨後 2024 年 GDP 溫和成長 0.8%，然後 2024 年 GDP 成長 2%。2025 年。預計 2023 年。年失業率為3.8%，2024 年及2025 年失業率均為5%。截至2023 年6 月30 日的借款包括我們在2023 年第二季借入的銀行定期融資計畫中的6.95 億美元成長率為4.7%。這些借款取代了來自聯邦住房貸款銀行的成本較高的借款。

Our FHLB borrowings consist of short-term advances that declined from $1.4 billion as of March 31, 2023 to $800 million at June 30, 2023. So as of June 30, their cost was approximately 5%. These FHLB advances will mature over the next 2 quarters with the final maturity at the end of November. The modest growth in borrowings from the end of the first quarter of '23 to end of the second quarter coincided with a $322 million increase in funds on deposits to Federal Reserve, which are in a rate of more than 5%.

我們的 FHLB 借款包括短期預付款，從截至 2023 年 3 月 31 日的 14 億美元降至 2023 年 6 月 30 日的 8 億美元。因此，截至 6 月 30 日，其成本約為 5%。這些 FHLB 預付款將在未來 2 個季度內到期，最終到期時間為 11 月底。從20世紀23年第一季末到第二季末，借款小幅成長，同時，聯準會儲存資金增加了3.22億美元，利率超過5%。

In addition to having more than $600 million of cash on the balance sheet as of June 30, 2023, we had substantial sources of off-balance sheet liquidity. These sources of liquidity include $4.1 billion of secured and unused capacity with the Federal Home Loan Bank, $1.3 billion of secured borrowing capacity at the Fed discount window or bank term funding program, more than $550 million of unpledged AFS securities that could be pledged at the discount window or the Fed's bank term funding program and $300 million of unsecured lines of credit.

截至 2023 年 6 月 30 日，除了資產負債表上有超過 6 億美元的現金外，我們還有大量的表外流動性來源。這些流動性來源包括聯邦住房貸款銀行41 億美元的擔保和未使用能力、美聯儲貼現窗口或銀行定期融資計劃的13 億美元擔保借貸能力、超過5.5 億美元可在聯邦住房貸款銀行質押的未質押AFS證券。貼現窗口或聯準會的銀行定期融資計劃以及 3 億美元的無擔保信貸額度。

In addition to these borrowing sources, the bank has not utilized any broker deposits as of June 30. We continue to shrink our investment portfolio by not reinvesting approximately $120 million of cash flows generated by our investments during the second quarter. Our total investment portfolio declined by $160 million from March 31, 2023 to $5.6 billion as of June 30. The decrease was primarily due to $136 million decline in investment securities available for sale or AFS securities. AFS securities totaled $3.07 billion at the end of the second quarter, inclusive of a pretax net unrealized loss of $498 million. As the bank has ample balance off-balance sheet sources of liquidity, it's unlikely that we would sell any of these AFS securities.

除了這些借款來源外，截至 6 月 30 日，該銀行尚未動用任何經紀人存款。我們繼續縮減投資組合，不再對第二季投資產生的約 1.2 億美元現金流進行再投資。截至 6 月 30 日，我們的總投資組合從 2023 年 3 月 31 日下降了 1.6 億美元，至 56 億美元。下降的主要原因是可供出售的投資證券或 AFS 證券減少了 1.36 億美元。截至第二季末，AFS 證券總額為 30.7 億美元，其中包括 4.98 億美元的稅前未達到淨虧損。由於銀行擁有充足的資產負債表外流動性來源，我們不太可能出售任何這些 AFS 證券。

Investment securities held to maturity or HTM securities totaled approximately $2.51 billion at June 30. The HTM portfolio declined by approximately $23 million from March 30, 2023, as cash flows were not reinvested during the quarter. The tax equivalent yield on the entire investment portfolio was 2.37% for the second quarter of 2023, essentially the same as the prior quarter but grew by 44 basis points in comparison to the second quarter of 2022.

截至6 月30 日，持有至到期投資證券或HTM 證券總額約為25.1 億美元。自2023 年3 月30 日起，HTM 投資組合減少了約2,300 萬美元，因為本季現金流未進行再投資。 2023年第二季整個投資組合的稅當量收益率為2.37%，與上一季基本持平，但與2022年第二季相比增長了44個基點。

Now turning to our capital position. Shareholders' equity increased by $53 million to $2.0 billion at the end of the second quarter. The company's tangible common equity ratio at June 30 was 7.8%, consistent with the prior quarter, while higher than the 7.5% at June 30, 2022. Equity increased for the first 6 months of 2023 as a result of year-to-date income of $115 million, which was offset by $56 million in dividends for both the first and second quarters of this year.

現在轉向我們的資本狀況。第二季末股東權益增加了 5,300 萬美元，達到 20 億美元。截至6 月30 日，該公司的有形普通股比率為7.8%，與上一季持平，但高於2022 年6 月30 日的7.5%。由於年初至今的收入，股本在2023 年前6 個月有所增加1.15 億美元，被今年第一季和第二季 5,600 萬美元的股利所抵銷。

The resulting year-to-date dividend payout ratio was 48.5%. The 10b5-1 stock repurchase plan we initiated in 2022 expired on March 2, 2023. There were no shares purchased during the second quarter of 2023. During the first quarter of this year, we repurchased approximately 792,000 shares of common stock at an average price of $23.43, totaling $18.5 million in stock repurchases. At the end of the second quarter of 2023, we entered into $1 billion in notional pay-fixed rate swaps as fair value hedges to mitigate the risk of rising interest rates on our capital.

年初至今的股利支付率為 48.5%。我們於2022年發起的10b5-1股票回購計畫於2023年3月2日到期。2023年第二季沒有回購股票。今年第一季度，我們以平均價格回購了約792,000股普通股23.43 美元，股票回購總額為1,850 萬美元。 2023 年第二季末，我們簽訂了 10 億美元的名義支付固定利率掉期合約，作為公允價值對沖，以減輕我們資本利率上升的風險。

These pay fixed swaps have maturities ranging from 4 to 5 years and on average, the fixed rate is approximately 3.8%. The variable rate received by the bank is daily SOFR. At June 30, 2023, we recorded $7.8 million fair value adjustment associated with the swap derivatives which increased other comprehensive income, partially mitigating the impact of a $38 million decline in fair value of our AFS portfolio. On a net basis, the changes in fair value from our AFS portfolio and fair value hedges resulted in a $19 million decline in other comprehensive income from the end of the first quarter to June 30.

這些支付固定掉期的期限為 4 至 5 年，平均固定利率約為 3.8%。銀行收到的浮動利率是每日 SOFR。截至 2023 年 6 月 30 日，我們記錄了與互換衍生性商品相關的 780 萬美元公允價值調整，這增加了其他綜合收益，部分緩解了我們的 AFS 投資組合公允價值下降 3,800 萬美元的影響。從淨值來看，我們的 AFS 投資組合和公允價值對沖的公允價值變化導致從第一季末到 6 月 30 日的其他綜合收益減少了 1,900 萬美元。

Our overall capital position continues to be very strong. Our regulatory capital ratios are well above regulatory requirements and considered well capitalized and above the majority of our peers. At June 30, 2023, our common equity Tier 1 capital ratio was 14.1%, and our total risk-based capital ratio was 14.9%. I'll now turn the call back to Dave for further discussion of our second quarter earnings.

我們的整體資本狀況仍然非常強勁。我們的監理資本比率遠高於監理要求，被認為資本充足，高於大多數同業。截至2023年6月30日，我們的普通股一級資本率為14.1%，總風險資本率為14.9%。現在我將把電話轉回戴夫，進一步討論我們第二季的收益。

Thank you, Allen. Net interest income before provision for credit losses was $119.5 million for the second quarter compared with $125.7 million for the first quarter and $121.9 million for the year ago quarter. Our tax equivalent net interest margin was 3.22% for the first quarter of 2023 compared to -- excuse me, 3.22% for the second quarter of 2023 compared with 3.45% for the first quarter of 2023 and 3.16% for the second quarter of 2022. The 23 basis point quarter-over-quarter decrease in our net interest margin was a result of a 34 basis point increase in cost of funds compared to a 10-point increase in earning asset yields.

謝謝你，艾倫。第二季未計信貸損失撥備前的淨利息收入為 1.195 億美元，而第一季為 1.257 億美元，去年同期為 1.219 億美元。我們 2023 年第一季的稅等淨利差為 3.22%，相較之下，2023 年第二季為 3.22%，2023 年第一季為 3.45%，2022 年第二季為 3.16%。我們的淨利差較上季下降了23 個基點，這是由於資金成本增加了34 個基點，而生息資產收益率卻增加了10 個基點。

The increase in cost of funds from the first quarter of 2023 to the second quarter was driven by a combination of a $555 million increase in short-term borrowings, which had an average cost of 4.9% in the second quarter and 49 basis point increase in the cost of interest-bearing deposits. Our 10 basis points quarter-over-quarter increase in earning asset yield was primarily the result of an 11 basis point increase in loan yields.

2023 年第一季至第二季的資金成本增加是由短期借款增加 5.55 億美元共同推動的，其中第二季的平均成本為 4.9%，短期借款的平均成本增加了 49 個基點。計息存款成本。我們的生息資產收益率較上季成長 10 個基點，主要是因為貸款收益率成長 11 個基點。

Second quarter average earning assets increased by $165 million from the first quarter due to an increase of $310 million in average funds on deposit at the Federal Reserve. The increase in our funds at the Fed offset decreases in both average investment securities of $73 million and average loans outstanding of $71 million. The 6 basis point increase in net interest margin year-over-year was due to an 81 basis point increase in earning asset yields, offsetting a 79 basis point increase in our cost of funds.

第二季平均獲利資產較第一季增加1.65億美元，原因是存放在聯準會的平均資金增加3.1億美元。我們在聯準會的資金增加抵消了平均投資證券 7,300 萬美元和平均未償貸款 7,100 萬美元的減少。淨利差年增 6 個基點是由於生息資產收益率增加 81 個基點，抵銷了我們資金成本增加 79 個基點。

The increase in earning asset yields was a result of higher loan and investment yields in the second quarter of 2023 compared to the second quarter of 2022 as well as an improved asset mix in which average loans grew from approximately 55% of earning assets in the second quarter of 2022 to 59% in the second quarter of 2023. Loan yields were 5.01% for the second quarter of 2023 compared with 4.31% for the year ago quarter. Investment security yields increased 44 basis points from a yield of 1.93% in the prior quarter to 2.37% in the second quarter of 2023.

生息資產收益率的成長是由於 2023 年第二季的貸款和投資收益率較 2022 年第二季更高，以及資產結構的改善（其中平均貸款從第二季佔生息資產的約 55% 成長） 2022 年第二季的貸款收益率上升至2023 年第二季的59%。2023 年第二季的貸款收益率為5.01%，去年同期為4.31%。投資證券收益率從上一季的 1.93% 上升 44 個基點至 2023 年第二季的 2.37%。

Earning assets for the quarter ending June 30, 2023, declined from the second quarter of 2022 by $593 million. Loans on average grew by $258 million from the second quarter of 2022.

截至 2023 年 6 月 30 日的季度獲利資產較 2022 年第二季下降 5.93 億美元。貸款較 2022 年第二季平均成長 2.58 億美元。

However, our investment portfolio and deposit balance at the federal reserve declined by a combined $865 million as total deposits declined by $1.9 billion year-over-year. Moving on to noninterest income. Noninterest income was $12.7 million for the second quarter of 2023 compared with $13.2 million for the prior quarter and $14.7 million for the year ago quarter.

然而，我們的投資組合和在聯準會的存款餘額總計下降了 8.65 億美元，存款總額比去年同期下降了 19 億美元。轉向非利息收入。 2023 年第二季的非利息收入為 1,270 萬美元，上一季為 1,320 萬美元，去年同期為 1,470 萬美元。

Our customer-related banking fees, including deposit services, international and merchant bank Card services decreased by approximately $506,000 compared to the first quarter and declined by approximately $495,000 when compared to second quarter of 2022. However, our trust and wealth management fees grew by $401,000 compared to the first quarter of 2023 and increased by $353,000 year-over-year. The conversion to SOFR of all of our previously originated back-to-back interest rate swaps indexed to LIBOR generated approximately $100,000 of fee income during the second quarter compared to $500,000 of fee income during the first quarter of 2023.

我們的客戶相關銀行費用，包括存款服務、國際和商業銀行卡服務，與第一季相比下降了約506,000 美元，與2022 年第二季度相比下降了約495,000 美元。然而，我們的信託和財富管理費用增加了401,000 美元與 2023 年第一季相比，年增 353,000 美元。我們先前發起的所有以 LIBOR 為索引的背靠背利率掉期轉換為 SOFR，在第二季度產生了約 100,000 美元的費用收入，而 2023 年第一季度的費用收入為 500,000 美元。

BOLI income for the second quarter of 2023 increased from the first quarter by $908,000, including $806,000 in debt benefits that exceeded the asset value of certain BOLI policies. BOLI income increased by $1.5 million compared to the second quarter of 2022 due to both the debt benefits received in the second quarter of 2023 and higher returns for the underlying investments in separate fund life insurance policies used to fund deferred compensation plans.

BOLI 2023 年第二季的收入較第一季增加了 908,000 美元，其中包括 806,000 美元的債務福利，超過了某些 BOLI 保單的資產價值。與2022 年第二季度相比，BOLI 收入增加了150 萬美元，這是由於2023 年第二季度收到的債務福利以及用於為遞延補償計劃提供資金的單獨基金人壽保險保單的基礎投資獲得了更高的回報。

Compared to the first quarter of 2023, CRE investment income declined by $500,000 due to the inclusion in the first quarter of 2023 a recapture of previously -- of a previous impairment charge on a CRA investment that paid in full during the first quarter of 2023 as well as a $475,000 decline in the second quarter due to valuation changes in the CRA fund.

與 2023 年第一季相比，CRE 投資收入下降了 50 萬美元，因為在 2023 年第一季重新收回了先前在 2023 年第一季全額支付的 CRA 投資減損費用，如下所示：由於CRA 基金的估值變化，第二季減少了475,000 美元。

Compared to the second quarter of 2022, CRA investment income declined by $716,000 as the prior quarter included gains from equity fund distributions totaling $1.3 million. The second quarter of 2022 also included $2.7 million in net gains on the sale of properties associated with banking centers. Now expenses. Noninterest expense for the second quarter was $54 million compared with $54.9 million for the first quarter of 2023 and $50.9 million for the year ago quarter.

與 2022 年第二季相比，CRA 投資收入下降了 716,000 美元，因為上一季包括總計 130 萬美元的股權基金分配收益。 2022 年第二季還包括出售與銀行中心相關的房產所帶來的 270 萬美元淨收益。現在費用。第二季非利息支出為 5,400 萬美元，而 2023 年第一季為 5,490 萬美元，去年同期為 5,090 萬美元。

The second quarter of 2023 included $400,000 in provision for unfunded loan commitments compared to $500,000 in provision for the first quarter of 2023. There was no provision for the second quarter of 2022. Salaries and employee benefit costs decreased $1.7 million quarter-over-quarter, primarily due to lower payroll taxes as the first quarter of each year typically has the highest amount of payroll taxes. The $866,000 quarter-over-quarter increase in professional services included increases of $357,000 in legal expense as well as other professional services that were -- that are associated with the timing of various projects.

2023 年第二季包括40 萬美元的無資金貸款承諾準備金，而2023 年第一季的準備金為50 萬美元。2022 年第二季沒有準備金。薪資和員工福利成本季減170 萬美元，主要是由於工資稅較低，因為每年第一季的工資稅通常最高。專業服務環比增加 866,000 美元，其中法律費用以及與各個項目的時間表相關的其他專業服務增加了 357,000 美元。

The $3.1 million increase in noninterest expense year-over-year included an increase of $2 million or 6% in salaries and employee benefits due to inflationary pressures, primarily experienced in the second half of 2022. FDI assessments increased by $785,000 over the prior quarter -- prior year quarter as higher assessment rates were effective at the beginning of 2023. Noninterest expense totaled 1.32% of average assets for the second quarter of 2023. This compares with 1.36% for the first quarter of 2023 and 1.2% for the second quarter of 2022.

非利息支出年增 310 萬美元，其中包括由於通貨膨脹壓力導致工資和員工福利增加 200 萬美元，即 6%，主要發生在 2022 年下半年。外國直接投資評估較上一季增加 785,000 美元 - -上一年季度，因為更高的評估率於2023 年初生效。2023 年第二季度非利息支出總計佔平均資產的1.32%。相較之下，2023 年第一季為1.36%，2023 年第二季度為1.2% 2022 年。

Our efficiency ratio was 40.86% for the second quarter of 2023, which compares with 39.5% for the prior quarter and 37.2% for the first quarter of 2022. Since our founding in 1974, we have managed to build a safe, sound and secure institution with the strategy focused on banking the best small- to medium-sized businesses and their owners. We remain focused on our core values of financial strength, superior people, customer focus, cost-effective operation and having fun.

2023 年第二季我們的效率為 40.86%，而上一季為 39.5%，2022 年第一季為 37.2%。自 1974 年成立以來，我們成功建立了一個安全、健全、有保障的機構該策略的重點是為最好的中小型企業及其所有者提供銀行服務。我們仍然專注於我們的核心價值：財務實力、優秀人才、以客戶為中心、經濟高效的營運和樂趣。

As the premier business bank in California, we have successfully executed on this strategy, and our focus will remain steady and consistent, so we can continue to provide the best banking products and services to these businesses that represent great American success stories. Despite the challenging environment, we will remain disciplined in our approach to credit, and we'll strive to produce and maintain consistent earnings, strong capital levels, solid credit and excellent liquidity. Please stay healthy and safe. This concludes today's presentation. Now Allen and I will be happy to take any questions that you might have.

作為加州首屈一指的商業銀行，我們已經成功執行了這一策略，我們的重點將保持穩定和一致，因此我們可以繼續為這些代表美國偉大成功故事的業務提供最好的銀行產品和服務。儘管面臨充滿挑戰的環境，我們仍將嚴格遵守信貸方針，努力產生並維持穩定的收益、強勁的資本水準、穩健的信貸和良好的流動性。請保持健康和安全。今天的演講到此結束。現在艾倫和我很樂意回答您可能提出的任何問題。

(Operator Instructions) And our first question will come from the line of Ben Gerlinger with Hovde Group.

（操作員說明）我們的第一個問題將來自 Hovde Group 的 Ben Gerlinger。

Seems like people mixed up SVB and CVB for a whole quarter. You don't have to comment on that. I'm sure you can't. But anyway, so in terms of just the borrowings. I think that laying out of the $800 million that gets paid off in November and then the bank term funding. When you think about the bank term funding specifically because you do have that high 4s rate in the Fed now at 5.5%, you are getting a positive spread. Is there any appetite to -- or can you pay that down early if deposits in the back half of the year increase?

似乎人們在整個季度都混淆了 SVB 和 CVB。你不必對此發表評論。我確信你不能。但無論如何，就借款而言。我認為先在 11 月支付 8 億美元，然後再由銀行定期融資。當你特別考慮銀行定期融資時，因為你現在聯準會的 4s 利率高達 5.5%，你就會得到正利差。如果下半年存款增加，您是否有興趣提前還款？

Ben, yes, I mean, what's nice about the bank term funding program is you don't have new penalties if you want to pay it off. And so there was a time where the yield curve was and the fact these are 1 year borrowings that it was just advantageous to utilize it. You get to use par value of collateral rather than fair value, pay it off anytime you want.

本，是的，我的意思是，銀行定期融資計劃的好處是，如果您想還清的話，就不會受到新的處罰。因此，有一段時間，殖利率曲線是這樣的，事實上這些是一年期借款，利用它是有利的。您可以使用抵押品的面額而不是公允價值，隨時還清。

In fact, we paid off and reborrowed a couple of times to get better rates. Now you can't replicate 4.7% right now. But if we do continue to see growth in the deposits, we could pay that off. But more than likely, we'll pay down FHLB first because it is generally more expensive borrowings. But having some cash on hand that pays us about 5.40% now versus the 4.70% is obviously some positive arbitrage for us.

事實上，我們還清並重新借了幾次以獲得更好的利率。現在你無法複製 4.7%。但如果我們確實繼續看到存款成長，我們就可以還清這筆錢。但很有可能，我們會先償還 FHLB，因為它通常是更昂貴的借款。但手頭上有一些現金，現在的利率約為 5.40%，而 4.70% 顯然對我們來說是一些積極的套利。

Got you. And then I think that's largely just predicated on your normal seasonality. It seems like you have pretty good inflow of deposits in the back half of the year. So we're pretty much at the start of gates for that. Just based on kind of the commentary you typically have with your customer base. And I mean just -- I'm sure you had a lot more conversations in the first 6 months of this year than probably any other 6-month period is that still something that you should expect.

明白你了。然後我認為這很大程度上取決於正常的季節性。看來下半年的存款流入還是不錯的。因此，我們幾乎正處於起步階段。僅基於您通常對客戶群的評論。我的意思是——我確信今年前 6 個月你們進行的對話可能比任何其他 6 個月期間都要多，這仍然是你們應該期待的。

You guys typically don't pay up a ton on deposits because you have really great relationships and you have another ways of rewarding your depositor base. But -- is that normal seasonality, something that we should continue to expect?

你們通常不會支付大量存款，因為你們擁有非常好的關係，並且有其他方式獎勵儲戶基礎。但是——這種正常的季節性是我們應該繼續期待的嗎？

Yes. I think we should expect that. And just to make sure we're on the same page. Normally, we kind of grow deposits in the second and third quarter and then deposits in the fourth quarter go down just due to a variety of reasons, bonuses, other things, distributions to business owners. So I would expect something similar on the seasonality side. The pace of the money that left and went outside of the bank slowed pretty significantly in the second quarter. And I think that, that should continue to be the case. I mean subject to a lot of different factors. Every day is a new day in the world out there. But I think the normal seasonality should be sort of anticipated.

是的。我認為我們應該期待這一點。只是為了確保我們意見一致。通常情況下，我們會在第二季和第三季增加存款，然後第四季的存款會因為各種原因、獎金、其他原因、對企業主的分配而下降。所以我預計季節性方面也會出現類似的情況。第二季度，資金流出銀行的速度明顯放緩。我認為，情況應該繼續如此。我的意思是受很多不同因素的影響。外面的世界每一天都是新的一天。但我認為正常的季節性應該是可以預見的。

Got you. And if I can just sneak one more in. I know that you guys aren't looking to do a transformational deal, but you guys do have a history of making some pretty good roll up or additional M&A to bolster the broader company. With The first 6 months being pretty quiet, we've you seen, not necessarily a floodgate, but we've seen a few notable deals announced this week across the country. Has there been conversational changes, maybe not necessarily you guys involved, but just has the appetite or the bid ask between the buyer and seller materially changed over the past few months? And then kind of juxtaposed against that, do you think you'd be participating anytime in the next year? Or do you need some more economic clarity before you really get involved or want to do something?

明白你了。如果我能再偷偷地進來一次的話。我知道你們並不打算進行一項轉型交易，但你們確實有進行一些相當不錯的整合或額外併購以支持更廣泛的公司的歷史。前 6 個月相當平靜，我們看到，這不一定是閘門，但我們看到本周全國各地宣布了一些值得注意的交易。對話是否發生了變化，也許不一定是你們參與，但只是買家和賣家之間的興趣或出價在過去幾個月發生了重大變化？與此相對照的是，您認為明年的任何時候您都會參加嗎？或者在你真正參與或想做某事之前，你是否需要更多的財務清晰度？

Yes. I think it's really a case-by-case basis. Just to the -- your comment regarding the conversations I think the conversations, I would say, picked up pretty significantly after the failures of the banks. People were nervous and scared and looking for a safe haven.

是的。我認為這確實是具體情況具體分析。就你對對話的評論而言，我想說的是，在銀行倒閉之後，對話顯著增加。人們感到緊張和害怕，並尋找安全的避難所。

But I'd say they've slowed a little bit. And part of the challenge is just the economics and the marks and all the stuff that goes into looking at a deal. We would be open to looking at an opportunity if it was presented to us and it made sense for us just based on our normal criteria. But that probably would impact some of the financial metrics with the marks where they are and some of those things. But look, we're always looking and open for conversations.

但我想說他們已經放慢了一點。部分挑戰在於經濟、分數以及考慮交易的所有因素。如果有機會提供給我們，並且根據我們的正常標準，它對我們有意義，我們會願意尋找機會。但這可能會影響一些財務指標及其所在位置以及其中一些事情。但是你看，我們一直在尋找並願意進行對話。

Obviously, yesterday, the change in -- or the announcement of the acquisition of Pac West was something that I think was overall good for the banking industry just from a risk perspective out there. But at the end of the day, we are open, but we will remain disciplined in how we utilize our capital for those types of things and our currency.

顯然，昨天的變化——或者說收購 Pac West 的宣布，我認為從風險角度來看，總體上對銀行業有利。但歸根結底，我們是開放的，但我們將在如何利用我們的資本進行這些類型的事情和我們的貨幣方面保持紀律。

Got you -- I mean has there been more [free agency] of just kind of the A+ bankers because of the deals that have been announced this year in California?

明白了——我的意思是，由於今年加州宣布的交易，是否有更多的 A+ 銀行家的[自由球員]？

I mean there's still a little bit of that. I don't think anything has really happened with the one that was announced yesterday. But that could and will, I believe, be an opportunity for us as we move forward through the next quarter or 2.

我的意思是還有一點。我認為昨天宣布的那件事並沒有真正發生任何事情。但我相信，當我們在下一季或第二季繼續前進時，這可能而且將會成為我們的一個機會。

And that will come from the line of Gary Tenner with D.A. Davidson.

這將來自加里·坦納 (Gary Tenner) 和 D.A. 的血統。戴維森。

I wanted to ask about the pickup in C&I quarter-over-quarter. It looks like line utilization increased, I think, 28% to 31%, which kind of correlates with the dollar increase. But can you talk about the dynamics there between increased drawdowns from your existing clients versus potentially have you brought on new business as well over the last 3 months?

我想詢問工商業季度環比回升的情況。我認為線路利用率似乎增加了 28% 至 31%，這與美元升值有關。但您能否談談過去 3 個月中現有客戶提款的增加與您可能帶來的新業務之間的動態關係？

Yes. So in -- towards the end of the quarter, we did bring on a new large C&I relationship that sort of impacted that to a degree. So that was probably a lot of that increase. I don't have the exact number off the top of my head, but I would say it was just anecdotally, 75-25 new relationship versus new borrowings from existing lines.

是的。因此，在本季末，我們確實建立了一種新的大型 C&I 關係，這在一定程度上影響了這一點。所以這可能是成長的很大一部分。我腦子裡沒有確切的數字，但我想說這只是一個軼事，75-25 新關係與現有線路的新借用。

Great. And then just since it's a sizable new relationship, could you kind of talk about the relative loan versus deposit impact of that relationship?

偉大的。然後，由於這是相當大的新關係，您能否談談這種關係對貸款與存款的相對影響？

Yes. So this is actually a really interesting. Allen's already laughing, Gary, sorry. This is not a new relationship to the bank. We actually acquired this relationship back in 2018 with the acquisition of Community Bank. They're an extremely large deposit customer, maintaining over $25 million in deposits with us. Back -- a couple of years ago, they left and went to another bank that offered them a line that we were unwilling to do the size of the line. And ultimately, they never took their deposits from us.

是的。所以這實際上非常有趣。艾倫已經笑了，加里，抱歉。這與銀行並不是新的關係。事實上，我們早在 2018 年收購社區銀行時就建立了這種關係。他們是一個非常大的存款客戶，在我們這裡擁有超過 2500 萬美元的存款。幾年前，他們離開並去了另一家銀行，該銀行為他們提供了一條我們不願意提供的額度的額度。最終，他們從未從我們這裡拿走存款。

They actually left their deposit relationship with us, went to this other bank. They made the decision that they wanted to leave the other bank and bring the line back to us. So it's pretty well balanced actually. It's probably about 80% coverage of their outstandings on the deposit side. So it's kind of an interesting story just because the relationship never really left the borrowings did but then the borrowings came back.

他們實際上離開了我們的存款關係，去了另一家銀行。他們決定離開另一家銀行並將線路帶回給我們。所以實際上它非常平衡。存款方面可能涵蓋了他們未償債務的 80% 左右。所以這是一個有趣的故事，因為這種關係從未真正離開借款，但後來借款又回來了。

Got it. I appreciate the color on that. And then just any commentary you could share on kind of what you're seeing almost through the first month of the third quarter in terms of deposit trends, impression.

知道了。我很欣賞它的顏色。然後，您可以就第三季第一個月在存款趨勢和印象方面所看到的情況分享任何評論。

Yes, I didn't -- we didn't disclose that number, but very stable is how I would characterize it. And sort of similar to my answer to Ben, we anticipate kind of similar trends historically, kind of second and third quarter deposit growth. Obviously, a lot can influence that in today's world. But I feel relatively confident that we'll continue those trends between now and the end of the third quarter.

是的，我沒有——我們沒有透露這個數字，但我對它的描述是非常穩定的。與我對本的回答有點相似，我們預計歷史上會出現類似的趨勢，即第二季和第三季的存款成長。顯然，當今世界有許多因素可以影響這一點。但我對從現在到第三季末我們將繼續這些趨勢感到相對有信心。

Gary, we actually -- we've opened an enormous amount of new accounts. I mean the average balances on our customers' relationships have gone down because I think they have taken some of that excess cash and invested it in trust and outside investments. But we are on offense through all of this.

加里，實際上我們已經開設了大量新帳戶。我的意思是，我們客戶關係的平均餘額下降了，因為我認為他們已經拿走了一些多餘的現金，並將其投資於信託和外部投資。但我們在這一切中都處於進攻狀態。

And that will come from the line of Matthew Clark with Piper Sandler.

這將來自馬修·克拉克和派珀·桑德勒的血統。

Maybe just on the margin first, trying to get some visibility into the next quarter if you have the spot rate on interest-bearing deposits at the end of June and the average margin in the month of June?

也許首先是在保證金上，如果您有 6 月底的計息存款即期利率和 6 月份的平均保證金，試圖對下一個季度有一定的了解？

Yes. I think we actually noted that it was 41 basis points in June, Matthew. And you can look at our investor deck and you'll see a monthly trend, so that should give you more color there. In terms of the outlook for our net interest margin, let me start with what you'll see in our Q. And we always disclose a 200 basis point up and 200 basis point down ramp over 12 months. And on a static balance sheet, that's going to generate over the first 12 months an increase in net interest income of 1.5% and over a 24-month period 2.7%.

是的。我認為我們實際上註意到 6 月的匯率為 41 個基點，馬修。你可以看看我們的投資人平台，你會看到每個月的趨勢，所以這應該會給你更多的色彩。就我們的淨利差前景而言，讓我從您在問題中看到的內容開始。我們總是披露 12 個月內上升 200 個基點和下降 200 個基點的情況。在靜態資產負債表上，這將使淨利息收入在前 12 個月內成長 1.5%，在 24 個月內成長 2.7%。

Likewise, if rates were happened to down 200 basis points, it's a modest decline of 1% in the first 12 and then cumulatively over the 24 it would be negative 3%. I would get -- I will give you a little more color on the very short-term outlook and I think it's reasonable to assume that we could have some improved asset mix on the earning asset side in the near-term quarter or quarters and as well as potentially improve the funding mix with less borrowing. So I think our outlook is that we think there's a reasonable chance of a better NIM. But obviously, that's subject to maybe the Fed increasing further in September.

同樣，如果利率碰巧下降 200 個基點，那麼在前 12 個週期內，利率會小幅下降 1%，然後在接下來的 24 個週期內，累計利率將下降 3%。我會得到 - 我會給你更多關於非常短期前景的信息，我認為可以合理地假設我們可以在近期一個或多個季度在盈利資產方面改善資產組合，並且隨著並有可能通過減少借貸來改善融資結構。因此，我認為我們的前景是，我們認為有可能實現更好的淨利差。但顯然，這可能取決於聯準會 9 月進一步升息的情況。

And Matthew, just 1 other -- on Page 39 in the Investor deck, the cost of interest-bearing deposits was 1.04% in the month of June.

馬修，只是另外一位——在投資者平台第 39 頁上，6 月的計息存款成本為 1.04%。

Got it. Okay. And then it doesn't sound like it from your prepared comments on the AFS portfolio. But any change in your willingness to restructure the securities portfolio given regulatory capital strengthening even further here?

知道了。好的。從您對 AFS 投資組合準備的評論來看，這聽起來並不像是這樣。但是，鑑於監理資本進一步加強，您重組證券​​投資組合的意願是否會改變？

No. I mean we'll always evaluate it and determine if there's opportunities. But as we commented on the balance sheets and the liquidity position is strong, and there's no need to really do any thing there.

不，我的意思是我們將始終對其進行評估並確定是否有機會。但正如我們對資產負債表的評論，流動性狀況強勁，因此沒有必要真正採取任何行動。

Okay. And then expenses down a little bit here this quarter, including lower comp. Can you give us kind of a sense for the run rate outlook here in the second half?

好的。然後本季的費用略有下降，包括較低的補償。能為我們介紹一下下半年的運行率前景嗎？

Well, as you may recall from prior years, we generally do salary increases midyear. So the third quarter over the second quarter should see some growth, probably 2% to 3% in overall staff and benefit expenses. The professional service number can be a little choppy quarter to quarter as we do different things. We have a lot of projects we continue to invest in to improve long-term efficiencies.

嗯，您可能還記得前幾年，我們通常會在年中加薪。因此，第三季相對於第二季應該會出現一些成長，整體員工和福利支出可能會成長 2% 到 3%。由於我們做的事情不同，每季的專業服務數量可能會有點不穩定。我們有很多項目需要繼續投資，以提高長期效率。

But generally, we continue to be very focused on keeping expense growth in the low-single digits to the extent we can. And obviously, the big unknown for us is going to be how we have to account for the special assessment from the FDIC. So how does that $8-plus million show up? Is it 1 quarter? Did they change it? It's split over multiple quarters. we'll have to wait and see.

但總的來說，我們仍然非常注重盡可能將費用成長保持在低個位數。顯然，我們面臨的最大未知數是我們如何解釋 FDIC 的特別評估。那麼這8多萬美元是如何體現的呢？是1季嗎？他們改變了嗎？它分為多個季度。我們得拭目以待。

Okay. And on the office CRE portfolio, it looks like 26% of it matures or reprices over the next 2 years. Do you have any examples? Or have you experienced any of that type of any maturities or repricing to date here more recently? And I assume you've kind of looked through what's coming due in repricing. What's kind of the outcome of what you found?

好的。在辦公室 CRE 投資組合中，看起來 26% 的資產將在未來 2 年內到期或重新定價。你有什麼例子嗎？或者您最近是否經歷過任何此類到期或重新定價？我想您已經了解了重新定價的到期情況。你發現的結果是什麼樣的？

Yes. I mean we do a lot of testing as we've said before. We do an annual review of every loan that's over $1 million in the bank, and we look at all the economics, the rent rolls, the NOI on the property, how everything is going. We have obviously had -- we always have every month, probably every week and maybe sometimes daily repricing on maturities of loans. And you have to remember, most -- and I'd say the vast, vast majority of those loans are not based on prime.

是的。我的意思是，正如我們之前所說，我們做了很多測試。我們對銀行裡每筆超過 100 萬美元的貸款進行年度審查，我們會研究所有的經濟狀況、租金記錄、房產的 NOI 以及一切進展。顯然，我們總是每個月，可能每週，有時甚至每天都會對貸款到期日重新定價。你必須記住，大多數人——我想說的是，這些貸款中的絕大多數並不是基於優質貸款。

There might be very few that are even based on prime. And so most of those are based on a 5-year treasury. The typical structure would be a 25-year amortization, [10-year] term, 5-year fixed, repricing at year 6. And that would be based on the 5-year treasury. So if you look at the difference in the 5-year treasury from 5 years ago to today, that would give you a good indication as far as how those loans would reprice. To date, we really -- and I don't know if one. And I asked this question of our Chief Credit Officer and our sales leaders, I've asked if we've had to have any customers rightsize their loans based on the cash flow from the property or how we value the property at reset or maturity.

甚至可能很少有基於質數的。因此，其中大部分都是基於五年期國庫券。典型的結構是 25 年攤銷，[10 年]期限，5 年固定，第 6 年重新定價。這將基於 5 年國庫券。因此，如果你看看 5 年期公債從 5 年前到今天的差異，就會很好地了解這些貸款將如何重新定價。到目前為止，我們確實——而且我不知道是否有。我向我們的首席信貸官和銷售主管提出了這個問題，我問我們是否必須讓客戶根據房產的現金流量或我們如何在重置或到期時對房產進行估值來調整他們的貸款規模。

And to date, there really hasn't been anything that has been material and no problems with our customers being able to cash flow and maintain solid debt service coverage ratios according to the covenants in their loan.

到目前為止，我們的客戶確實沒有發生任何重大事件，也沒有出現任何問題，他們能夠根據貸款契約獲得現金流並維持穩定的償債覆蓋率。

Great. And then last one for me, just getting back to M&A and more explicitly. Did you have any interest in PacWest and why or why not?

偉大的。最後一個對我來說，只是回到併購，更明確地說。您對 PacWest 感興趣嗎？為什麼或為什麼不感興趣？

So look -- it's been our stated approach to M&A, we want to do $1 billion to $10 billion. We want to stick kind of with banks that are more similar to us. There were a lot of things that I would have said that I would have been interested in, but there were also a lot of things that I would have said I wouldn't have been interested in. And I think that for us, we want to execute on our strategy. We want to remain CVB. We want any bank that we look at acquiring to be able to fold into our culture, our processes, our credit quality, all of those things.

所以看——這是我們既定的併購方式，我們想要 10 億到 100 億美元。我們希望與與我們更相似的銀行合作。有很多事情我會說我會感興趣，但也有很多事情我會說我不會感興趣。我認為對我們來說，我們想要執行我們的策略。我們希望保留 CVB。我們希望我們考慮收​​購的任何銀行都能夠融入我們的文化、流程、信用品質等等。

And I just think that right now that would be a pretty big ask of anybody to go through some of that. So I mean I'm happy for the overall banking industry that, that was sort of taken off the table. But I do think that it probably wouldn't have fit our criteria.

我只是認為現在對任何人來說都是一個很大的要求去經歷其中的一些事情。所以我的意思是，我對整個銀行業感到高興，這有點被取消了。但我確實認為它可能不符合我們的標準。

And that will come from the line of Kelly Motta with KBW.

這將來自凱利·莫塔 (Kelly Motta) 與 KBW 的血統。

I wanted to start on the excellent deposit trends you guys had this quarter. And I appreciate all the color there. Just wondering, if you could maybe step back and talk more broadly. I know there's been obviously a lot of disruption out west. And wanted to see if any of the inflows you're seeing have been from new customers that you're able to like win from this disruption versus how much of these deposit flows are from existing customers just running their business or coming back after some initial headwinds in March .

我想從你們本季的優秀存款趨勢開始。我很欣賞那裡的所有顏色。只是想知道，您是否可以退後一步，更廣泛地談談。我知道西部地區顯然遭受了很多幹擾。並且想看看您所看到的資金流入是否來自於您能夠從這次中斷中贏得的新客戶，而這些存款流量中有多少來自於剛剛運營業務的現有客戶或經過一些初始投資後回來的客戶三月的逆風。

Yes. Well, I mean, it's really kind of a tale of -- in the second quarter is kind of tale of the early quarter and later in the quarter. And in the early quarter, I would say there was a little bit of disruption just from the failures. And we really -- we did have some impact there, but it really wasn't significant. And as I think I mentioned, our kind of average existing customer balance is down quarter over quarter.

是的。嗯，我的意思是，這確實是一個故事——第二季度是一個季度初和季度末的故事。在第一季度，我想說，僅僅因為失敗就造成了一些幹擾。我們確實在那裡產生了一些影響，但實際上並不重要。正如我所提到的，我們的平均現有客戶餘額逐季下降。

And a lot of -- when you asked a question about the new deposit relationships, the $647 million, I don't have a breakdown of how many of that is new customer, new customers vis-a-vis existing customers opening new accounts, but the vast majority of it is new customers to the bank. I mean we really started working on this last year. We changed our incentive plan to really focus on deposits. The disruption has helped us with some of the bank failures. We've opened accounts from those banks.

還有很多——當你問到關於新存款關係的問題時，6.47 億美元，我沒有詳細說明其中有多少是新客戶，新客戶與開設新帳戶的現有客戶相比，但其中絕大多數是銀行的新客戶。我的意思是我們去年才真正開始研究這個問題。我們改變了激勵計劃，並真正專注於存款。這次破壞幫助我們解決了一些銀行倒閉的問題。我們已經在這些銀行開設了帳戶。

A lot of the people that were at First Republic or silicon, we haven't got a ton from silicon, but a lot of the customers that were there, they left bigger banks, and they don't really want to go back to bigger banks. And our specialty deposit groups like specialty banking or government services, they've been very active. And in those 2 sort of verticals, the majority of those deposits are noninterest-bearing because our operating funds are other people's money and short-term escrows, that type of thing.

許多在第一共和國或矽的人，我們沒有從矽中得到大量的東西，但是那裡的很多客戶，他們離開了更大的銀行，他們真的不想回到更大的銀行銀行。我們的專業存款團體，如專業銀行或政府服務部門，他們一直非常活躍。在這兩種垂直領域中，大部分的存款都是無息的，因為我們的營運資金是其他人的錢和短期託管之類。

And we still haven't seen a full return of where we were at the high point on the specialty banking side. Government Services continues to generate new relationships with cities and municipalities and districts, specialty banking is probably having one of their best new production years ever. So I never thought I would say our deposit pipeline might be bigger than our loan pipeline. But yes, we have a lot of things going. And I think with the more recent disruption could create even more opportunities for us.

我們仍然沒有看到專業銀行業務完全恢復到巔峰狀態。政府服務繼續與城市、直轄市和地區建立新的關係，專業銀行業務可能是有史以來最好的新生產年份之一。所以我從來沒有想過我會說我們的存款管道可能比我們的貸款管道更大。但是，是的，我們有很多事情要做。我認為最近發生的混亂可能會為我們創造更多機會。

Great. Maybe I'll lead into just then with the deposit pipeline and kind of how we should be thinking about the size of the balance sheet going ahead? I appreciate the commentary on securities. And just as we look ahead with what you're seeing in the pipe for deposits and considering what you have with borrowings. Like how should we be thinking about the overall size of the balance sheet? Do you expect that to grow?

偉大的。也許我會在那時介紹存款管道以及我們應該如何考慮未來資產負債表的規模？我很欣賞有關證券的評論。正如我們展望您在管道中看到的存款並考慮您的借款。例如我們應該如何考慮資產負債表的整體規模？您預計這一數字會成長嗎？

And tying it into what you had talked about with the margin and commentary around that, like where -- any color on where we should expect NII to kind of exit the year and kind of the outlook for that as we consider both sides of the balance sheet and the size.

並將其與您所討論的內容以及相關的邊際和評論聯繫起來，例如我們應該期望 NII 在哪裡退出今年的任何顏色，以及當我們考慮平衡的雙方時的前景紙張和尺寸。

So Kelly, I don't think the balance sheet size will change dramatically. Certainly, as deposits grow, our most likely reaction to that is to reduce the amount of debt on the balance sheet. We are going to look to try to grow loans, of course, let the securities portfolio pay down a little bit. So we could modestly grow. It could modestly decline just depending on some of those factors. .

所以凱利，我認為資產負債表規模不會有巨大變化。當然，隨著存款的成長，我們最可能的反應是減少資產負債表上的債務金額。我們將尋求嘗試增加貸款，當然，讓證券投資組合減少一點。這樣我們就可以適度成長。僅取決於其中一些因素，它可能會適度下降。 。

In terms of the net interest margin, once again, I think some of it is going to be predicated on changing the asset mix, changing the funding mix. We do feel that it's reasonable that in the near term, maybe the second quarter is the worst net interest margin this year, but we still have to see how the Fed reacts later in the year.

就淨利差而言，我再次認為其中一部分將取決於資產組合和融資組合的改變。我們確實認為，短期內，第二季可能是今年最糟糕的淨利差，這是合理的，但我們仍需觀察聯準會今年稍晚的反應。

Okay. Got it. And provided that what you're thinking with, what you see for margin with maybe assuming the forward curve. It's fair to say flattish balance sheet and some kind of modest NII growth, any just way to size that?

好的。知道了。假設你正在考慮什麼，你所看到的保證金可能是假設遠期曲線。公平地說，資產負債表持平，NII 略有成長，有什麼公正的方法來衡量這一點嗎？

I think it's -- we don't really get forward guidance. So I think I'll just leave it with the commentary, Kelly.

我認為我們並沒有真正得到前瞻性指導。所以我想我就留下評論吧，凱利。

(Operator Instructions) Our next question will come from the line of Tim Coffey with Janney Montgomery.

（操作員說明）我們的下一個問題將來自 Tim Coffey 和 Janney Montgomery 的路線。

Most of my questions have been asked and answered, but I had 1 question. Speaking of PacWest, can you describe kind of what your level of optimism is that pressures on deposit costs might come down near term given that PacWest was running some fairly aggressive deposit campaigns within your footprint?

我的大部分問題已被提出並得到解答，但我有 1 個問題。說到 PacWest，鑑於 PacWest 在您的業務範圍內開展了一些相當激進的存款活動，您能否描述一下您對存款成本壓力可能會在短期內下降的樂觀程度？

Yes. Look, I think there's a lot of people running fairly aggressive deposit campaigns in our footprint. So I'm not sure this PacWest in and of itself will change much of that. But I just go back to the point that I've made. We bank operating companies, and we don't have a lot of people that are chasing yield. I mean there is some of that as evidenced by the increase in the cost of interest-bearing deposits, but the majority of our deposits are operating companies.

是的。看，我認為有很多人在我們的足跡中開展相當激進的存款活動。所以我不確定 PacWest 本身是否會改變很多。但我只是回到我已經說過的觀點。我們是銀行營運公司，沒有很多人追逐收益。我的意思是，有息存款成本的增加證明了這一點，但我們的存款大多是營運公司。

And so we are focused on that. One thing -- and I'm sort of trying to give you some of the color around here, one of the things I looked at is just kind of the mix of the new loan opportunities we're looking at the new deposit opportunities. There's a significantly higher portion of the new loans we're doing and the new deposit relationships we're getting that are really operating companies, C&I companies. And I think the result of this has been a good thing just sort of with the focus of our people to make sure they're going after the right types of businesses and not trying to necessarily do the next investor commercial real estate loan. And so I'm pretty positive on where that's going. And I think we will see depending on, again, what the Fed does. We will see some continued pressure on the funding on the deposit side, but it has moderated a little bit. My hope is that, that continues.

所以我們專注於此。一件事——我想給你們一些信息，我關注的一件事就是我們正在尋找新的存款機會的新貸款機會的組合。我們正在發放的新貸款和我們獲得的新存款關係中，有很大一部分是真正的營運公司、工商業公司。我認為這樣做的結果是一件好事，我們的員工專注於確保他們追求正確類型的企業，而不是試圖進行下一個投資者的商業房地產貸款。所以我對事情的發展非常樂觀。我認為我們將再次取決於聯準會的行動。我們將看到存款方面的資金繼續面臨一些壓力，但已經有所緩解。我的希望是，這種情況會持續下去。

Thank you. I'm showing no further questions in the queue at this time. I would like to now turn the call back over to Mr. Brager for any closing remarks.

謝謝。目前我在隊列中沒有顯示任何其他問題。我現在想將電話轉回給布雷格先生，請他發表結束語。

Great. Thank you. I want to thank everybody for joining us this quarter. We appreciate your interest and look forward to speaking with you in October for our third quarter 2023 earnings call. Please let Allen or I know if you have any questions. Have a great day, and we'll talk to you soon.

偉大的。謝謝。我要感謝大家本季加入我們。我們感謝您的關注，並期待在 10 月召開的 2023 年第三季財報電話會議上與您交談。如果您有任何疑問，請告訴艾倫或我。祝您有美好的一天，我們很快就會與您交談。

Thank you all for participating. This concludes today's program. You may now disconnect.

感謝大家的參與。今天的節目到此結束。您現在可以斷開連線。