Eastern Bankshares Inc (EBC) 2023 Q2 法說會逐字稿

Hello, and welcome to the Eastern Bankshares, Inc. Second Quarter 2023 Earnings Conference Call. Today's call will include forward-looking statements, including statements about Eastern's future financial and operating results, outlook, business strategies and plans as well as other opportunities and potential risks that management foresees.

您好，歡迎參加 Eastern Bankshares, Inc. 2023 年第二季度收益電話會議。今天的電話會議將包括前瞻性陳述，包括有關東方航空未來財務和經營業績、前景、業務戰略和計劃以及管理層預見的其他機會和潛在風險的陳述。

Such forward-looking statements reflect management's current estimates or beliefs and are subject to risks and uncertainties that may cause actual results or the timing of events to differ materially from the views expressed today. More information about such risks and uncertainties is set forth under the caption forward-looking statements in the earnings press release as well as in the Risk Factors section and other disclosures in the company's periodic filings with the Securities and Exchange Commission.

此類前瞻性陳述反映了管理層當前的估計或信念，並受到風險和不確定性的影響，這些風險和不確定性可能導致實際結果或事件發生的時間與今天表達的觀點存在重大差異。有關此類風險和不確定性的更多信息，請參見收益新聞稿中的前瞻性陳述標題以及公司向美國證券交易委員會提交的定期文件中的風險因素部分和其他披露內容。

Any forward-looking statements made during this call represent managements views and estimates as of today and the company undertakes no obligation to update these statements as a result of new information or future events. During the call, the company will also discuss both GAAP and certain non-GAAP financial measures. For a reconciliation of GAAP to the non-GAAP financial measures, please refer to the company's earnings press release, which can be found at investor.easternbank.com. Please note this event is being recorded. (Operator Instructions)

本次電話會議期間做出的任何前瞻性陳述均代表管理層截至目前的觀點和估計，公司不承擔因新信息或未來事件而更新這些陳述的義務。在電話會議期間，該公司還將討論公認會計原則和某些非公認會計原則財務指標。有關 GAAP 與非 GAAP 財務指標的調節表，請參閱該公司的收益新聞稿，該新聞稿可在 Investor.easternbank.com 上找到。請注意此事件正在被記錄。 （操作員說明）

Thank you. I would now like to turn the conference over to Bob Rivers, Chair and CEO. Please go ahead.

謝謝。我現在想將會議交給主席兼首席執行官鮑勃·里弗斯 (Bob Rivers)。請繼續。

Thank you, Joanne. Good morning, everyone, and thank you for joining our second quarter earnings call. As always, I'm joined today by Jim Fitzgerald, our Chief Administrative Officer and Chief Financial Officer. Although the operating environment for banks remains challenging in some respects, we feel very good about our results this quarter. In particular, we demonstrated that our securities repositioning in the first quarter strengthened our balance sheet and improved our earnings outlook. Improvements that were immediately impactful and can be seen in our second quarter results. Our net interest margin improved 14 basis points during the quarter and is in line with our guidance from last quarter. In total, our operating revenues were higher than the first quarter as well.

謝謝你，喬安妮。大家早上好，感謝您參加我們的第二季度財報電話會議。與往常一樣，今天我們的首席行政官兼首席財務官吉姆·菲茨杰拉德 (Jim Fitzgerald) 也加入了我的行列。儘管銀行的經營環境在某些方面仍然充滿挑戰，但我們對本季度的業績感覺非常好。特別是，我們證明第一季度的證券重新定位增強了我們的資產負債表並改善了我們的盈利前景。這些改進立即產生了影響，可以在我們第二季度的業績中看到。本季度我們的淨息差提高了 14 個基點，與我們上季度的指導一致。總的來說，我們的營業收入也高於第一季度。

In addition, we were able to reduce our wholesale funding by $1 billion during the quarter, which allowed us to shrink our asset base and create a stronger balance sheet and earnings profile. While we expect the challenging environment to continue and potentially become more so over the next few quarters, we have taken steps to ensure that we are well prepared.

此外，本季度我們的批發融資減少了 10 億美元，這使我們能夠縮小資產基礎並創造更強勁的資產負債表和盈利狀況。雖然我們預計充滿挑戰的環境將持續下去，並可能在未來幾個季度變得更加嚴峻，但我們已採取措施確保做好充分準備。

For example, although both our leading credit indicators and traditional asset quality metrics improved in the quarter, we increased our allowance for loan losses and moved our provision higher in the quarter to be consistent with that outlook. We also believe the Fed will keep rates higher for longer and that the heightened competition for deposits will continue for some time. Although we were able to contain our overall cost of funds in the quarter, that was primarily due to the reduction of wholesale funds through the securities sale last quarter. We continue to see a migration from lower cost deposits to higher cost deposits and expect that trend to continue.

例如，儘管我們的領先信貸指標和傳統資產質量指標在本季度都有所改善，但我們增加了貸款損失準備金，並在本季度提高了準備金，以與前景保持一致。我們還認為，美聯儲將在更長時間內維持較高利率，並且存款競爭的加劇將持續一段時間。儘管我們能夠控製本季度的總體資金成本，但這主要是由於上季度證券銷售減少了批發資金。我們繼續看到從較低成本存款向較高成本存款的轉變，並預計這種趨勢將持續下去。

We will look for opportunities to further improve our overall funding position as we move forward. Our primary focus and strategy for the next few quarters is to position ourselves so we can gain market share and improve our competitive position in this environment. The failure of both Silicon Valley and First Republic has created significant term model in our market.

隨著我們的前進，我們將尋找機會進一步改善我們的整體融資狀況。我們未來幾個季度的主要重點和戰略是定位自己，以便我們能夠獲得市場份額並提高我們在這種環境中的競爭地位。矽谷和第一共和國的失敗在我們的市場上創造了重要的期限模型。

Although we operate differently than they did, there is market opportunity that is very clear to us. Our commercial loan growth was strong in the quarter, and we think it demonstrates that we have been very open for business and is consistent with our long-term desire to meet our customers' needs throughout all phases of the business cycle. That said, we expect lower growth, slower growth for the rest of the year, as you will hear Jim describe further.

儘管我們的經營方式與他們不同，但我們非常清楚存在市場機會。本季度我們的商業貸款增長強勁，我們認為這表明我們對業務一直非常開放，並且符合我們在商業周期各個階段滿足客戶需求的長期願望。也就是說，我們預計今年剩餘時間的增長會越來越慢，正如您將聽到吉姆進一步描述的那樣。

For the upcoming quarters, we will continue to focus on opportunities to improve our balance sheet and earnings outlook. As the environment becomes more challenging, those strengths will potentially provide opportunities to further gain market share and help us strengthen our position as the leading community bank in Greater Boston. Once again, we are pleased with our results this quarter and feel very confident regarding Eastern's future growth and performance.

在接下來的幾個季度，我們將繼續關注改善資產負債表和盈利前景的機會。隨著環境變得更具挑戰性，這些優勢將有可能提供進一步獲得市場份額的機會，並幫助我們鞏固作為大波士頓地區領先社區銀行的地位。我們再次對本季度的業績感到滿意，並對東方航空未來的增長和業績充滿信心。

As always, most of the credit for this goes to my 2,100 colleagues who continue to ensure that Eastern remains the strong and reliable financial and community partner we have been for the past 205 years as well as to our customers and community partners through their continued business and support. And now I'll turn it over to Jim.

與往常一樣，這主要歸功於我的2,100 名同事，他們繼續確保東方航空在過去205 年裡一直是強大而可靠的金融和社區合作夥伴，同時也歸功於我們的客戶和社區合作夥伴，通過他們的持續業務和支持。現在我將把它交給吉姆。

Great. Thanks, Bob, and good morning, everyone. I'll first provide some high-level comments on the quarter and then take a closer look at the balance sheet, income statement and then our outlook for the rest of the year. As Bob mentioned, we're very pleased with our results for this quarter, especially given the challenges faced by our industry. The interest rate environment continues to create headwinds for deposit levels and overall funding costs, and we are carefully reviewing all our loan portfolios as we watch for signs of a weakening economy.

偉大的。謝謝鮑勃，大家早上好。我將首先對該季度提供一些高層評論，然後仔細研究資產負債表、損益表，然後是我們對今年剩餘時間的展望。正如鮑勃提到的，我們對本季度的業績非常滿意，特別是考慮到我們行業面臨的挑戰。利率環境繼續對存款水平和總體融資成本造成不利影響，我們正在仔細審查所有貸款組合，同時觀察經濟疲軟的跡象。

Despite of the environment, we produced very good core operating results while maintaining strong asset quality this quarter. We feel confident we are very well positioned for future growth in our markets. The repositioning of the securities portfolio in the first quarter strengthened our liquidity and improved our earnings path while maintaining very robust capital levels.

儘管面臨這樣的環境，我們本季度仍取得了非常好的核心經營業績，同時保持了強勁的資產質量。我們相信，我們已經為市場未來的增長做好了充分的準備。第一季度證券投資組合的重新定位增強了我們的流動性，改善了我們的盈利路徑，同時保持了非常強勁的資本水平。

All of these attributes position us to better withstand today's environment, and we expect will improve our prospects for growth and success over time. We experienced a 14 basis point improvement in our net interest margin in the second quarter as our margin expanded from 2.66% to 2.80% on a fully tax equivalent basis. We've reduced our borrowings by $800 million to $350 million at the end of the second quarter or less than 2% of total assets. We also ended the quarter with very meaningful levels of cash at nearly $900 million, demonstrating liquidity enhancements from the first quarter repositioning.

所有這些屬性使我們能夠更好地抵禦當今的環境，並且我們預計隨著時間的推移，我們的增長和成功前景將得到改善。第二季度，我們的淨息差提高了 14 個基點，按完全稅值計算，我們的利潤率從 2.66% 擴大到 2.80%。截至第二季度末，我們的借款減少了 8 億美元至 3.5 億美元，佔總資產的比例不到 2%。本季度結束時，我們的現金水平非常有意義，接近 9 億美元，這表明第一季度重新定位後流動性得到了增強。

Net income was $48.7 million in the second quarter and $45.3 million on an operating basis. Earnings were $0.30 per diluted share and $0.28 per diluted share on an operating basis. Asset quality remained very sound in the quarter with essentially no charge-offs, a decline in nonperforming loans to just $31 million or 22 basis points of total loans and a reserve build of $7 million, bringing reserve coverage of nonperforming loans to nearly 500%. As we continue to expand our market presence, loan growth was 8.4% on an annualized basis in the quarter, which was led by commercial and consumer loan growth of approximately 10% and mortgage loan growth of 2%. Our Board approved a dividend of $0.10 per share payable on September 15 to shareholders of record on September 1, 2023.

第二季度淨利潤為 4870 萬美元，運營淨利潤為 4530 萬美元。經營基礎上稀釋後每股收益為 0.30 美元，稀釋後每股收益為 0.28 美元。本季度資產質量仍然非常良好，基本上沒有沖銷，不良貸款下降至僅 3100 萬美元，即貸款總額的 22 個基點，儲備金增加了 700 萬美元，不良貸款的準備金覆蓋率達到近 500%。隨著我們繼續擴大市場份額，本季度貸款年化增長率為 8.4%，其中商業和消費貸款增長約 10%，抵押貸款增長 2%。我們的董事會批准於 9 月 15 日向 2023 年 9 月 1 日登記在冊的股東派發每股 0.10 美元的股息。

I'll now turn to a review of the balance sheet. Assets ended the quarter at $21.6 billion, down $1.1 billion from the prior quarter, primarily due to a reduction in cash and borrowings. As we mentioned on last quarter's call, we held our cash balances very high at $2.1 billion at March 31 due to the uncertainty created by the bank failures and we're happy to reduce those levels as the operating environment stabilized in late April and into May.

我現在將審查資產負債表。本季度末資產為 216 億美元，比上一季度減少 11 億美元，主要是由於現金和借款減少。正如我們在上季度的電話會議中提到的，由於銀行倒閉造成的不確定性，截至3 月31 日，我們的現金餘額保持在21 億美元的高位，隨著4 月底和5 月份運營環境的穩定，我們很高興能夠降低這些水平。 。

We ended the second quarter with just under $900 million in cash as we continue to prioritize maintaining strong balance sheet liquidity. The cash level was down $1.3 billion from the end of Q1. Securities ended the quarter at just under $5 billion, down from $5.2 billion in the first quarter, primarily due to paydowns. Loans ended the quarter at $14 billion, increasing $287 million from the prior quarter, primarily due to an increase in commercial loans of $239 million, $35 million in consumer loans and $13 million in residential loans.

第二季度結束時，我們的現金略低於 9 億美元，我們繼續優先考慮保持強勁的資產負債表流動性。現金水平較第一季度末減少了 13 億美元。本季度末，證券業務總額略低於 50 億美元，低於第一季度的 52 億美元，這主要是由於還款所致。本季度末貸款額為 140 億美元，較上一季度增加 2.87 億美元，主要是由於商業貸款增加 2.39 億美元，消費貸款增加 3500 萬美元，住宅貸款增加 1300 萬美元。

Total deposits decreased $361 million in the quarter, and we continue to see mix shift towards higher rate interest-bearing deposits. Borrowings decreased by $787 million in the quarter and ended the quarter at $351 million. Shareholders' equity decreased by $54 million due to a decrease in AOCI, partially offset by growth in retained earnings.

本季度存款總額減少了 3.61 億美元，我們繼續看到存款結構轉向更高利率的計息存款。本季度借款減少 7.87 億美元，季度末借款減少 3.51 億美元。由於 AOCI 減少，股東權益減少了 5400 萬美元，但被留存收益的增長部分抵消。

Moving to the earnings review. GAAP net income was $48.7 million or $0.30 per diluted share and operating net income was $45.3 million or $0.28 per diluted share. Net interest income was $141.6 million, an increase from the $138.3 million in the prior quarter. The net interest margin was 2.80% for the quarter, up from 2.66% in the prior quarter. Interest-earning asset yields were up 35 basis points in the quarter while interest-bearing liability costs were up 30 basis points. As you can see on the waterfall chart on Slide 6, the margin improvements came from loans, investment and cash income as well as the reduction in borrowing expense and were partially offset by an increase in deposit costs.

轉向盈利審查。 GAAP 淨利潤為 4870 萬美元，即稀釋後每股 0.30 美元，營業淨利潤為 4530 萬美元，即稀釋後每股 0.28 美元。淨利息收入為 1.416 億美元，較上一季度的 1.383 億美元有所增加。本季度淨息差為 2.80%，高於上一季度的 2.66%。本季度生息資產收益率上升 35 個基點，而付息負債成本上升 30 個基點。正如您在幻燈片 6 的瀑布圖上看到的那樣，利潤率的提高來自貸款、投資和現金收入以及借款費用的減少，但部分被存款成本的增加所抵消。

On the funding side, the cost of our interest-bearing liabilities for the month of June was 1.77%, which was stable during the quarter, as you can see on the top of Slide 9. This was due to the repositioning and the reduction in wholesale funds that took place in the quarter. Deposit costs were 1.22% in Q2, up 30 basis points from the 0.92% in the prior quarter. The 30 basis point increase was slower than the increase of the prior quarter.

在資金方面，我們 6 月份的有息負債成本為 1.77%，本季度保持穩定，如幻燈片 9 頂部所示。這是由於重新定位和減少本季度發生的批發資金。第二季度存款成本為 1.22%，較上季度的 0.92% 上升 30 個基點。 30個基點的增幅低於上一季度的增幅。

Provision for loan losses was $7.5 million in the quarter, up essentially from no provision in Q1. As mentioned, we had loan growth of $287 million in the quarter, and we also increased our overall ACL factors in the quarter by 3 basis points, primarily due to higher risk in the investor office space. Noninterest income was $53.8 million for the quarter and $50.8 million on an operating basis. Eastern Insurance had another strong quarter with $27.6 million of revenues up 12% from the same quarter last year.

本季度貸款損失準備金為 750 萬美元，較第一季度的無準備金大幅增加。如前所述，我們本季度的貸款增長了 2.87 億美元，我們還將本季度的整體 ACL 係數提高了 3 個基點，這主要是由於投資者辦公空間的風險較高。本季度非利息收入為 5,380 萬美元，營業收入為 5,080 萬美元。東方保險的季度收入再次強勁，收入為 2,760 萬美元，比去年同期增長 12%。

As we've mentioned in the past, there is a seasonal nature to our insurance revenues with the bulk of incentive payments from insurance carriers being received in Q1. All other noninterest income line items showed increases from the prior quarter. Noninterest expense was $121.7 million on a GAAP basis and $120.3 million on an operating basis in the quarter.

正如我們過去提到的，我們的保險收入具有季節性，保險公司的大部分激勵付款是在第一季度收到的。所有其他非利息收入項目均較上一季度有所增長。本季度非利息支出按 GAAP 計算為 1.217 億美元，按運營計算為 1.203 億美元。

As we outlined on Slide 8, the increase in salaries and benefits, occupancy and data processing costs totaled $1.1 million in the quarter. The larger increase in all other expenses included an increase of $1.5 million and the provision for credit losses on off-balance sheet commitments. The effects of higher FDIC insurance premium as well as an increase in marketing costs.

正如我們在幻燈片 8 中概述的那樣，本季度工資和福利、入住率和數據處理成本的增長總計 110 萬美元。所有其他費用的較大增幅包括增加 150 萬美元以及表外承諾的信用損失撥備。 FDIC 保險費上漲以及營銷成本增加的影響。

Tax expense was based on an effective tax rate of 27% in the quarter, which was higher than our guidance last quarter. There are some complexities from the securities repositioning last quarter that have impacted that rate. I'll have some comments on our expectation for the tax rate over the rest of the year during the outlook. Asset quality continues to be very sound, similar to the prior several quarters, we experienced nominal net charge-offs in Q2. Nonperforming loans of $30.6 million are at very low levels, and our reserve coverage to NPLs is over 480%. We continue to watch for the impact of a weaker economy on the loan portfolios. Through the end of the second quarter, both our traditional credit metrics and our leading indicators were stronger than they were in the prior quarter. As I mentioned, though, we felt it prudent to add to our reserve levels in the second quarter as we expect credit trends to normalize over time.

稅收費用基於本季度 27% 的有效稅率，高於我們上季度的指導。上個季度的證券重新定位存在一些複雜性，影響了這一比率。在展望期間，我將就我們對今年剩餘時間的稅率預期發表一些評論。資產質量仍然非常穩健，與前幾個季度類似，我們在第二季度經歷了名義淨沖銷。不良貸款 3,060 萬美元處於非常低的水平，不良貸款準備金覆蓋率超過 480%。我們繼續關注經濟疲軟對貸款組合的影響。截至第二季度末，我們的傳統信貸指標和領先指標均強於上一季度。不過，正如我所提到的，我們認為在第二季度增加準備金水平是謹慎的做法，因為我們預計信貸趨勢將隨著時間的推移而正常化。

We updated the snapshot of our office portfolio and included it in Appendix B of the presentation. As indicated on the slide, there hasn't been much change during the quarter although we continue to closely monitor this asset class.

我們更新了辦公室組合的快照，並將其包含在演示文稿的附錄 B 中。正如幻燈片所示，儘管我們繼續密切關注這一資產類別，但本季度沒有太大變化。

As we mentioned on Slide 18, we have no nonperforming loans in our investor office portfolio, and our overall commercial real estate portfolio is performing very, very well. I wanted to provide a few comments on our outlook, which is included on Slide 13. We expect commercial loan growth to slow in the second half of the year to the low single digits and for mortgage and consumer loans to have a little no growth in the second half of the year.

正如我們在幻燈片 18 中提到的，我們的投資者辦公室投資組合中沒有不良貸款，而且我們的整體商業房地產投資組合表現非常非常好。我想就我們的前景提供一些評論，這些評論包含在幻燈片 13 中。我們預計下半年商業貸款增長將放緩至個位數較低，抵押貸款和消費貸款將不會出現增長。下半年。

We're increasing our outlook for operating noninterest income for the full year to a range of $175 million to $185 million, up from the prior outlook due to the strong first half performance. We expect that some of the items in our other noninterest expense line item will return closer to Q1 levels over the rest of the year. We would expect to be at the higher range of our prior guidance that was between $465 million and $475 million for our nonoperating noninterest -- for our operating noninterest expense for the year. We expect the tax rate for the second half of the year to be between 22% and 23%. Although as we note on the slide, it could be volatile quarter-to-quarter.

由於上半年表現強勁，我們將全年營業非利息收入的預期上調至 1.75 億美元至 1.85 億美元，高於之前的預期。我們預計其他非利息支出項目中的一些項目將在今年剩餘時間內恢復到接近第一季度的水平。我們預計今年的非經營性非利息支出將處於先前指導的較高範圍，即 4.65 億美元至 4.75 億美元之間。我們預計下半年稅率在22%至23%之間。儘管正如我們在幻燈片中指出的那樣，它可能會出現季度波動。

We expect our net interest margin to be in the range of 2.7% to 2.8% and for our full year net interest income to be modestly lower than the level of 2022. Our forecast was based on the forward curve as of early July, which assumed a 25 basis points rate increase from the Fed that we saw this week.

我們預計淨息差將在 2.7% 至 2.8% 之間，全年淨利息收入將略低於 2022 年的水平。我們的預測基於截至 7 月初的遠期曲線，假設本週我們看到美聯儲加息25 個基點。

In closing, we're very pleased with our results for the quarter in what remains a difficult environment. We continue to look for opportunities to improve our overall balance sheet strength and funding profile and are optimistic we will be very well positioned to take advantage of any opportunities as the challenging environment continues. Thank you. And Joanna, we're ready to open the line for your questions.

最後，我們對在仍然困難的環境下本季度的業績感到非常滿意。我們繼續尋找機會來改善我們的整體資產負債表實力和資金狀況，並且樂觀地認為，隨著充滿挑戰的環境的持續，我們將處於有利地位，能夠利用任何機會。謝謝。喬安娜，我們已準備好解答您的問題。

(Operator Instructions) First question comes from the line of Damon DelMonte at KBW.

（操作員說明）第一個問題來自 KBW 的 Damon DelMonte。

So just wanted to start off with a question on the margin outlook, Jim. So if you kind of look at the first 2 quarters' worth of margin, that kind of puts you in like 273 range or so. So do you kind of expect the margin to hold steady at this [280] level? Or do you think it's going to kind of drift down over the next couple of quarters? And what are some of the puts and takes that go into that?

吉姆，我只想從一個關於利潤前景的問題開始。因此，如果你看一下前 2 個季度的利潤率，就會發現，你的利潤範圍大約是 273 左右。那麼您是否預計利潤率會穩定在這個 [280] 水平？或者您認為在接下來的幾個季度中它會有所下降嗎？其中有哪些看跌期權？

Yes. I think, Damon, as we say on the slide and in my remarks, we expect the margin to be between 270 and 280, so somewhat [along] with what you said. The rate outlook today is higher than it was a quarter ago. If you go back and look at the forward curve at that time was different. So rates are up a little bit since then, which is why we're seeing a little bit of a modest reduction in our outlook there. But the margin, as we said, we expect to be between 270 and 280.

是的。我想，達蒙，正如我們在幻燈片和我的講話中所說的那樣，我們預計利潤將在 270 到 280 之間，所以與您所說的有些[一致]。今天的利率前景高於一個季度前。如果你回頭看看當時的遠期曲線是不同的。因此，自那時以來，利率略有上升，這就是為什麼我們看到我們的前景略有下降。但正如我們所說，我們預計利潤率將在 270 至 280 之間。

Okay. And what are your thoughts on the $900 million of cash that you have? Are you planning on holding that for a little while longer? Or do you expect to try to reduce borrowings and/or brokered CDs in the coming quarters? .

好的。您對自己擁有的 9 億美元現金有何看法？你打算再堅持一段時間嗎？或者您是否預計在未來幾個季度嘗試減少借款和/或經紀存款證？ 。

I would expect that to come down a little bit, although we are prioritizing balance sheet liquidity. I think coming through the bank failures that was obvious that it's important. So we expect it to come down a little bit, but we would still hold higher levels of cash than we did, say, a year ago.

儘管我們優先考慮資產負債表流動性，但我預計這一數字會略有下降。我認為，經歷了銀行倒閉之後，這一點顯然很重要。因此，我們預計它會略有下降，但我們仍會持有比一年前更高的現金水平。

Got it. Okay. And then I guess just with loan growth kind of moderating in commercial in low single digits and not much other growth in the other areas of the portfolio. You did a little bit of reserve build this quarter. Do you feel like you've adequately gotten to the level that you want to be at? Or should we kind of expect that higher level provision similar to this quarter? .

知道了。好的。然後我想商業貸款增長會放緩至低個位數，而投資組合的其他領域則沒有太多增長。本季度您做了一些準備金建設。您覺得自己已經充分達到自己想要達到的水平了嗎？或者我們是否應該期待與本季度類似的更高水平的供應？ 。

Right. It's a good question, Damon. I would answer that 2 parts, right? So if you look at our provision this quarter and prior quarters, considerable amount is driven by loan growth. So we had, call it, $300 million worth of loan growth this quarter, and that attracts a higher allowance and goes through the provision. So that will change if loan growth comes down, which is what we guided to and what we anticipate that component of the provision would come down accordingly.

正確的。這是個好問題，達蒙。我會回答兩部分，對嗎？因此，如果你看看我們本季度和前幾個季度的撥備，就會發現相當一部分是由貸款增長推動的。因此，本季度我們的貸款增長了 3 億美元，這吸引了更高的準備金並通過了準備金。因此，如果貸款增長下降，情況就會發生變化，這就是我們的指導方針，我們預計準備金的組成部分也會相應下降。

The ACL buildup that we had this past quarter, I would consider a fine-tuning. We had overall, given the size of the portfolio, as I said, I would consider a fine-tuning. It's hard to give you any more color on what happens in the future, will depend on the environment.

我們上個季度的 ACL 積累，我會考慮進行微調。正如我所說，總體而言，考慮到投資組合的規模，我會考慮進行微調。很難給你更多關於未來發生的事情的信息，這將取決於環境。

The next question comes from the line of Mark Fitzgibbon at Piper Sandler.

下一個問題來自 Piper Sandler 的 Mark Fitzgibbon。

Jim, on your fee income guidance, the high end of your guide of $185 million implies sort of fees of, call it, $41 million a quarter for the last 2 quarters of the year. I know you'll have some decline in insurance commissions. But what are some of the other areas where you expect things to soften up?

吉姆，在您的費用收入指導中，指導的上限為 1.85 億美元，這意味著今年最後兩個季度每季度的費用為 4100 萬美元。我知道你的保險佣金會有所下降。但您預計還有哪些其他領域的情況會有所緩和？

It primarily is insurance, Mark. So if you look at the prior years and the quarterly trends over the course of the year, it starts out very high and moves down over the course of the year. Some of that's insurance payments, and there are some anomalies in the fourth quarter as well. So that reduction is primarily -- not primarily, it's essentially all in the insurance line.

它主要是保險，馬克。因此，如果你看看前幾年和這一年中的季度趨勢，就會發現它一開始非常高，然後在一年中下降。其中一些是保險付款，第四季度也存在一些異常情況。因此，這種減少主要是——不是主要的，基本上都是在保險範圍內。

Secondly, I was curious if you are contemplating any additional balance sheet restructuring moves? .

其次，我很好奇您是否正在考慮進行任何額外的資產負債表重組舉措？ 。

I think, Mark, we continue to look at all sorts of balance sheet opportunities, but we don't anticipate anything. I wouldn't say the first quarter actions were pretty significant. Certainly, nothing like that. As Bob said and I said, we continue to look for ways around the edges to improve the funding profile and the balance sheet generally. But I would expect those will be very, very modest. .

我認為，馬克，我們將繼續關注各種資產負債表機會，但我們不會做出任何預期。我不會說第一季度的行動非常重要。當然，沒有那樣的事情。正如鮑勃和我所說，我們繼續尋找邊緣方法來總體改善融資狀況和資產負債表。但我預計這些將是非常非常溫和的。 。

Do you have a sense for the dollar amount of office loans that either mature or reprice in, say, 2023 or 2024?.

您是否了解 2023 年或 2024 年到期或重新定價的辦公貸款金額？

We can come back on that, it's steady. It's not lumpy. It's steady over time, and we can come back on that as to whether or not we would provide that. .

我們可以回來，它很穩定。它不是塊狀的。隨著時間的推移，它是穩定的，我們可以重新考慮是否會提供它。 。

And then lastly, given some transactions in the industry recently, I wondered if you're thinking on M&A has changed at all. Do you think transactions can kind of get done in this environment in your market? .

最後，鑑於最近該行業的一些交易，我想知道您對併購的看法是否發生了變化。您認為交易可以在您所在市場的這種環境下完成嗎？ 。

We're -- and Bob can comment as well. I think we're always [students] of the acquisition game. Those were interesting transactions, and we'd love to understand them better. We'll take the time to do that. Facts and circumstances and things align, as you know. So it's really hard to comment other than say those were -- certainly, the PacWest transaction looked like it had some very clever attributes. .

我們——鮑勃也可以發表評論。我認為我們始終是收購遊戲的[學生]。這些都是有趣的交易，我們很想更好地了解它們。我們會花時間去做這件事。如你所知，事實、情況和事物是一致的。因此，除了說這些之外，真的很難發表評論——當然，PacWest 交易看起來有一些非常聰明的屬性。 。

I mean, Mark, we're certainly interested in opportunities and stay in active contact with potential partners. And if we can find a situation that we can make the numbers work and works for us strategically, we'd certainly have an interest. .

我的意思是，馬克，我們當然對機會感興趣，並與潛在合作夥伴保持積極聯繫。如果我們能找到一種情況，讓這些數字發揮作用，並在戰略上為我們服務，我們肯定會有興趣。 。

Your next question comes from the line of Janet Lee at JPMorgan.

你的下一個問題來自摩根大通的珍妮特·李。

I want to understand -- I want to make sure that I understand the prior comment. So for the rest of 2023, the trajectory of NIM could be fairly steady versus the second quarter and taking your NII sensitivity into your account should the Fed start cutting rates in 2024, what would that mean for your NII and NIM trajectory? .

我想理解——我想確保我理解之前的評論。因此，在2023 年剩餘時間裡，NIM 的軌跡與第二季度相比可能相當穩定，如果美聯儲在2024 年開始降息，那麼將您的NII 敏感性考慮在內，這對您的NII 和NIM 軌跡意味著什麼？ 。

So we haven't provided any guidance for 2024 yet Janet. Janet, it's too much of a moving target at this point. I think what we put on the slide and what I articulated in my comments was for the rest of this year, and obviously, the environment is moving very quickly. And as I said, we haven't put anything out for '24 yet.

所以我們還沒有為 2024 年提供任何指導，珍妮特。珍妮特，在這一點上它的移動目標太大了。我認為我們在幻燈片上提出的內容以及我在評論中闡述的內容是針對今年剩餘時間的，顯然，環境正在快速變化。正如我所說，我們還沒有推出 24 週年的任何內容。

Okay. Fair. And I know it's very difficult to guess. But if you have to make your best guess as to where your non-interest bearing deposits would bottom as a percentage of total? Like what would be your guess there? Like could it dip much below 29% today? .

好的。公平的。我知道這很難猜測。但是，如果您必須對無息存款佔總存款的百分比進行最佳猜測，該怎麼辦？你的猜測是什麼？就像今天它會跌破 29% 嗎？ 。

Janet those are really hard to guess, is the right word. And it's not something -- we watch the trends like you watch the trends, and we'll continue to watch. It's really hard to make predictions in that space.

珍妮特那些真的很難猜，是正確的詞。這不是什麼——我們像你觀察趨勢一樣觀察趨勢，我們將繼續觀察。在這個領域做出預測真的很困難。

Okay. And apologies if this came up already, but any near-term plan for share repurchases given your capital levels still very high versus peers?

好的。如果這個問題已經出現，我們深表歉意，但考慮到貴公司的資本水平與同行相比仍然非常高，有什麼近期的股票回購計劃嗎？

Sure. Similar to what we've said over time on share repurchases, really 3 criteria. One is market conditions, two is capital and three is liquidity. And those are 3 evolving and interrelated subjects as we didn't -- as we reported, we didn't report any share repurchases, but it is something we continue to evaluate. And if you look at our track record over a longer period of time, something we're interested in, but it's really those 3 criteria market conditions, capital and liquidity that we need to feel very confident about. And we'll obviously communicate as we make decisions going forward. .

當然。與我們長期以來在股票回購方面所說的類似，實際上有 3 個標準。一是市場狀況，二是資本，三是流動性。這是三個不斷發展且相互關聯的主題，正如我們所報告的那樣，我們沒有報告任何股票回購，但這是我們繼續評估的事情。如果你看看我們在較長一段時間內的業績記錄，我們會感興趣，但我們真正需要對這三個標準市場條件、資本和流動性感到非常有信心。當我們做出未來的決定時，我們顯然會進行溝通。 。

There are no further questions at this time. I will now turn the call back over to Bob Rivers for closing remarks.

目前沒有其他問題。現在，我將把電話轉回給鮑勃·里弗斯（Bob Rivers），讓他發表結束語。

Great. Well, thank you again for your interest and your questions, and best wishes for a great rest of summer.

偉大的。好吧，再次感謝您的興趣和問題，並祝您度過一個愉快的夏天。

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

謝謝。今天的電話會議到此結束。您現在可以斷開連接。