Eastern Bankshares Inc (EBC) 2023 Q3 法說會逐字稿

Hello, and welcome to Eastern Bankshares, Inc, third 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. 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.

您好，歡迎參加 Eastern Bankshares, Inc. 2023 年第三季財報電話會議。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。此類前瞻性陳述反映了管理層目前的估計或信念，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有重大差異。

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. Any forward-looking statements made during this call represent management's 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.

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。本次電話會議期間所做的任何前瞻性陳述均代表管理層截至目前的觀點和估計，本公司不承擔因新資訊或未來事件而更新這些陳述的義務。

During the call, the company will also discuss both GAAP and certain non-GAAP financial measures. For a reconciliation of GAAP and 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) Thank you.

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 和非 GAAP 財務指標的調整表，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）謝謝。

I would now like to turn the call over to Bob Rivers, Chair and CEO.

我現在想將電話轉給董事長兼執行長 Bob Rivers。

Great. Thank you, Julie. Good morning, everyone, and thank you for joining our third quarter earnings call. I'm joined today by Jim Fitzgerald, our Chief Administrative Officer and Chief Financial Officer, who will review our financial results shortly.

偉大的。謝謝你，朱莉。大家早安，感謝您參加我們的第三季財報電話會議。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) 也將與我一起，他將很快審查我們的財務業績。

The third quarter marked a very significant event for Eastern as we further advanced our strategic initiatives with the simultaneous announcement on September 19 of the sale of Eastern Insurance to A.J. Gallagher and the agreement to merge with Cambridge Trust. Both transactions are on track with the anticipated time lines communicated last month. We expect to close on the sale of Eastern Insurance next week and have filed all of the bank regulatory applications for the approvals required for the Cambridge Trust merger, which is expected to be completed in the first quarter of 2024.

第三季對東方來說是一件非常重要的事件，我們進一步推進了我們的戰略舉措，並於 9 月 19 日同時宣布將東方保險出售給 A.J.加拉格爾以及與劍橋信託公司合併的協議。兩項交易均按上個月公佈的預期時間表進行。我們預計將於下週完成東方保險的出售，並已提交劍橋信託合併所需批准的所有銀行監管申請，預計合併將於 2024 年第一季完成。

In addition, both the teams at Eastern and Cambridge Trust are engaged in planning the integration and a seamless transition for affected customers. We are also very pleased to announce our Board approved a 10% increase in our dividend from $0.10 per share to $0.11 per share, which will be paid in December, demonstrating our confidence in both our strategic direction and our operating results. In the midst of these 2 significant transactions, we produced strong operating results during the quarter.

此外，東方和劍橋信託的團隊都致力於為受影響的客戶規劃整合和無縫過渡。我們也非常高興地宣布，董事會批准將股息從每股 0.10 美元增加 10% 至每股 0.11 美元，並將於 12 月支付，這表明我們對戰略方向和經營業績充滿信心。在這兩項重大交易中，我們在本季取得了強勁的經營業績。

As Jim mentioned on the September 19 call, the insurance sale required us to account for Eastern Insurance as a discontinued operation in Q3 and also helped us realize some tax benefits that we weren't able to realize previously, all these items caused our results to look different than earlier quarters. We have worked hard to provide transparency so that you can see the underlying results. We experienced a slower increase in our cost of funds in the third quarter, although like many banks, we continue to see the shift out of lower-cost deposits into higher cost deposits and we expect that to continue in Q4 and into 2024.

正如Jim 在9 月19 日的電話會議上提到的那樣，保險出售要求我們將東方保險作為第三季度的已終止業務進行會計處理，並且還幫助我們實現了一些我們以前無法實現的稅收優惠，所有這些都導致​​我們的業績看起來與前幾季有所不同。我們努力提供透明度，以便您可以看到基本結果。儘管與許多銀行一樣，我們繼續看到成本較低的存款轉向成本較高的存款，但我們第三季的資金成本成長放緩，我們預計這種情況將在第四季度持續到 2024 年。

In spite of the increase in costs, we continue to be confident that our lower cost deposit portfolio will be a long-term competitive advantage. We have worked very hard to keep our wholesale funding levels at modest levels and we think an efficient balance sheet is in our long -- in our shareholders' long-term interest. Excluding the sale of the shared national credit loans we described in the presentation, core commercial loan growth in Q3 was modest, and we expect it to stay that way for the next few quarters.

儘管成本增加，我們仍然相信我們較低成本的存款組合將成為長期競爭優勢。我們非常努力地將批發融資水準維持在適度的水平，我們認為有效的資產負債表符合我們股東的長期利益。不包括我們在演示中描述的共享國家信用貸款的銷售，第三季度的核心商業貸款增長溫和，我們預計未來幾個季度將保持這種狀態。

We are finding loan demand to be limited as our customers are being cautious in part due to the higher level of interest rates. We also expect consumer and mortgage loan growth in the single digits over the next few quarters. With the pending sale of Eastern Insurance, there is more visibility into the expense profile of the bank on a stand-alone basis. We believe that we have made significant progress on the efficiency goals we set at the time of our IPO in 2020, for both our efficiency ratio and expense to assets ratio and expect further improvement as we combine with Cambridge Trust.

我們發現貸款需求有限，部分原因是利率水準較高，導致客戶持謹慎態度。我們也預計未來幾季消費者和抵押貸款將以個位數成長。隨著東方保險即將出售，人們可以更清楚地了解該銀行的獨立費用狀況。我們相信，我們在 2020 年 IPO 時設定的效率目標（效率比和費用與資產比率）方面都取得了重大進展，並預計隨著我們與劍橋信託的合併，將進一步改善。

Our asset quality metrics continue to be very strong in Q3 with credit losses below 1 basis point and continuing low levels of nonperforming loans. We continue to manage our exposure to the office sector and provide details on the portfolio in the presentation. Our balance sheet strength continues to be a focus and a source of strength. Both our regulatory and GAAP capital levels are strong relative to requirements as compared with many of our peers. Our loan deposit portfolios are of high quality and our wholesale funding levels at 5% of assets are low.

我們的資產品質指標在第三季仍然非常強勁，信貸損失低於 1 個基點，不良貸款水準持續較低。我們繼續管理我們在辦公領域的投資，並在演示中提供有關投資組合的詳細資訊。我們的資產負債表實力仍然是我們的焦點和力量的來源。與許多同業相比，我們的監管和公認會計準則資本水平均符合要求。我們的貸款存款組合品質很高，而佔資產 5% 的批發融資水準較低。

We will continue to look for ways to strengthen the balance sheet even further over time, but believe this strength is a competitive advantage. Looking ahead, we are very excited about the future opportunities as we merge with Cambridge Trust, our enhanced market position, increased scale and capabilities, along with significantly larger wealth management and private banking businesses will provide a stronger platform for future growth in earnings than we have historically had. We look forward to providing you additional details as we move through the regulatory approval process in closing.

隨著時間的推移，我們將繼續尋找進一步加強資產負債表的方法，但相信這種優勢是一種競爭優勢。展望未來，我們對與劍橋信託合併後的未來機會感到非常興奮，我們增強的市場地位、增強的規模和能力，以及更大的財富管理和私人銀行業務，將為未來的收益增長提供比我們更強大的平台。歷史上曾經有過。我們期待在最後完成監管審批流程時向您提供更多詳細資訊。

As I conclude my remarks, I express my thanks and deepest appreciation to all of our Eastern Insurance Group colleagues for their many contributions to Eastern's overall success and culture over the past 21 years. And as their planned transition to A.J. Gallagher approaches, we send our best wishes for continued success. I have every confidence they will continue to excel leveraging Gallagher's market-leading capabilities and we look forward to partnering with them in serving our mutual clients.

在我結束發言時，我向東方保險集團的所有同事表示感謝和最深切的謝意，他們在過去 21 年裡為東方保險集團的整體成功和文化做出了許多貢獻。隨著他們計劃過渡到 A.J.加拉格爾即將到來，我們致以最良好的祝愿，祝他繼續取得成功。我堅信他們將繼續利用 Gallagher 的市場領先能力取得優異的成績，我們期待與他們合作，為我們共同的客戶提供服務。

And once again, I especially thank Eastern Insurance's President and CEO, Tim Lodge, and his executive team for their many contributions to Eastern and for leading the team through this process. Finally, I also want to thank our Chief Credit Officer, Dan Sullivan, for his 27 years of service to Eastern as he retires this month and wish him a very happy and healthy retirement.

我再次特別感謝東方保險的總裁兼首席執行官蒂姆·洛奇（Tim Lodge）和他的執行團隊對東方保險做出的許多貢獻並領導團隊完成這一過程。最後，我還要感謝我們的首席信貸官丹·沙利文 (Dan Sullivan)，他為東方航空服務了 27 年，他將於本月退休，並祝他退休生活愉快、健康。

Dan was the architect of our credit process and culture at Eastern, a long-time strength of our company, with delinquency rates, levels of nonperforming loans and net credit losses regularly among the lowest of our peers. Dan joined us in 1996 as our very first Chief Credit Officer when Eastern had just $2.1 billion in assets with 28 branches, helping to lead our transformation from a savings bank to one with a loan portfolio that is now over 70% commercial, quite a legacy.

丹是東方信貸流程和文化的設計師，東方信貸是我們公司的長期優勢，其拖欠率、不良貸款水平和淨信貸損失經常處於同行中最低的水平。 Dan 於1996 年加入我們，擔任我們的第一位首席信貸官，當時東方銀行只有21 億美元的資產和28 個分行，幫助領導我們從一家儲蓄銀行轉型為一家貸款組合現已超過70% 商業化的銀行，這是一筆相當大的遺產。

I'm delighted to share that Matthew Osborne, former Head of our commercial real estate and community development lending teams and a 25-year veteran at Eastern has assumed Dan's role as our Chief Credit Officer, creating a seamless transition for our teams. As a result, Greg Buscone, who leads our middle market lending and international banking teams will become our Chief Commercial Banking Officer. Each of these promotions is representative of long times thoughtful succession planning as well as the tremendous talent and bench strength within our organization.

我很高興地告訴大家，我們商業房地產和社區開發貸款團隊的前負責人、在東方擁有25 年經驗的資深人士Matthew Osborne 已接任Dan 擔任我們的首席信貸官，為我們的團隊創造了無縫過渡。因此，領導我們的中間市場貸款和國際銀行團隊的 Greg Buscone 將成為我們的首席商業銀行長。每一次晉升都代表了長期深思熟慮的繼任計畫以及我們組織內巨大的人才和後備力量。

Once again, we are pleased with our results this quarter and feel very confident regarding Eastern's future growth and performance. 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 for their business, support and partnership.

我們再次對本季的業績感到滿意，並對東方航空未來的成長和業績充滿信心。像往常一樣，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 年裡一直是我們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，他們為我們提供了優質的服務。業務、支援和夥伴關係。

And with that, I'll turn it over to Jim.

有了這個，我會把它交給吉姆。

Great. Thank you, Bob, and good morning, everyone. As Bob mentioned, it was a very busy third quarter for us with the insurance transaction and the merger with Cambridge announced together in mid-September. Both are very important strategic transactions for us and combined will lead to a stronger balance sheet, enhanced market share and a platform for future earnings growth that we are very excited about.

偉大的。謝謝你，鮑勃，大家早安。正如鮑勃所提到的，對我們來說，第三季非常繁忙，保險交易和與劍橋的合併在九月中旬一起宣布。兩者對我們來說都是非常重要的策略交易，合併後將帶來更強大的資產負債表、更大的市場份額以及我們非常興奮的未來獲利成長平台。

As I mentioned on the call in September, the transactions do create some short-term noise in our results. The sale of the insurance operations requires us to account for Eastern Insurance as a discontinued operation and to restate our prior period results accordingly. In some ways, this is helpful as it provides an early view of what we will look like going forward without Eastern Insurance, although we recognize it's a change from what we've presented historically.

正如我在 9 月的電話會議上提到的，這些交易確實對我們的業績產生了一些短期噪音。出售保險業務要求我們將東方保險作為一項已終止業務進行會計處理，並相應地重述我們前期的業績。在某些方面，這很有幫助，因為它提供了我們在沒有東方保險的情況下未來會是什麼樣子的早期視圖，儘管我們認識到這與我們歷史上所呈現的情況有所不同。

We provide details on the results for Eastern Insurance that are contained in discontinued operations on Page 7 of the earnings presentation. In addition to the core results, there were $10.7 million of transaction-related charges that occurred in Q3. Excluding those costs, EIG's results were in line with expectations. One reminder is that discontinued operations are not included in our operating net income, which makes comparisons with the overall expectations difficult.

我們提供了有關東方保險業績的詳細信息，這些信息包含在收益報告第 7 頁的已終止經營業務中。除了核心業績外，第三季還發生了 1,070 萬美元的交易相關費用。排除這些成本，EIG 的表現符合預期。需要提醒的是，已終止的業務並未包含在我們的營業淨利潤中，這使得與整體預期進行比較變得困難。

In addition, the insurance transaction allowed us to eliminate a tax valuation allowance of approximately $15 million that we set up as part of the security sale in Q1. Although this was very positive and an additional economic benefit of the transaction, it's a onetime event.

此外，保險交易使我們能夠消除約 1500 萬美元的稅收估價津貼，這是我們在第一季證券銷售中設定的。儘管這是非常積極的並且是交易的額外經濟利益，但這只是一次性事件。

I'll provide some comments on our tax rate later in my remarks. As Bob mentioned, both transactions are progressing very well. We expect the sale of EIG to occur next week as anticipated and have submitted all the regulatory applications for approval for the Cambridge merger. I'll follow up with some specific comments on both transactions when I discuss our outlook. We are very pleased to announce a 10% increase in our dividend from $0.10 to $0.11 per share, which is payable in December. We have a high degree of confidence in our strategic direction and our operating earnings and believe this dividend reflects that confidence.

我將在稍後的發言中對我們的稅率發表一些評論。正如鮑伯所提到的，兩筆交易都進展順利。我們預計 EIG 的出售將於下週按預期進行，並已提交所有監管申請以批准劍橋合併。當我討論我們的前景時，我將對這兩筆交易進行一些具體評論。我們非常高興地宣布將股息從每股 0.10 美元增加到 0.11 美元，增加 10%，並將於 12 月支付。我們對我們的策略方向和營業收入充滿信心，並相信此次股息反映了這種信心。

Starting with some highlight. Net income for the quarter was $59.1 million or $0.36 per share. Operating earnings were $52.1 million or $0.32 per share. Net income includes both a loss of $4.4 million from discontinued operations and a tax benefit of $16.2 million, which was driven by the elimination of the $15 million tax valuation allowance I mentioned. Also, as I mentioned, the loss on discontinued operations is due to transaction costs incurred in the sale of Eastern Insurance.

從一些亮點開始。該季度淨利潤為 5,910 萬美元，即每股 0.36 美元。營業利潤為 5,210 萬美元，即每股 0.32 美元。淨利潤包括因終止經營而造成的 440 萬美元損失和 1,620 萬美元的稅收優惠，這是由於取消了我提到的 1,500 萬美元稅收估價津貼而帶來的。此外，正如我所提到的，終止經營的損失是由於出售東方保險產生的交易成本所造成的。

The net interest margin of 2.77% was relatively stable quarter-to-quarter, down just 3 basis points from Q2. Deposit costs were well contained, up 11 basis points in the quarter from 1.22% to 1.33% and interest-bearing deposit costs were up 18 basis points from 1.71% to 1.89%. Total assets declined approximately $400 million from June 30, due primarily to declines in cash and securities.

淨利差為2.77%，季相對穩定，較第二季僅下降3個基點。存款成本得到良好控制，本季上升11個基點，從1.22%上升至1.33%，計息存款成本上升18個基點，從1.71%上升至1.89%。自 6 月 30 日起，總資產減少約 4 億美元，主要是由於現金和證券減少。

Capital levels remain very strong with a CET1 ratio of 16% and a fully marked tangible equity to tangible assets ratio, which includes unrealized losses on HTM securities of 8.5%. In the quarter, core commercial loan growth, which excludes the sale of shared national credits I'll discuss shortly, was just under 2%, which was down from earlier in the year, but consistent with our expectations.

資本水準仍然非常強勁，CET1 比率為 16%，有形權益與有形資產比率完全標記，其中 HTM 證券的未實現損失為 8.5%。本季度，核心商業貸款成長（不包括我稍後討論的共享國家信貸的銷售）略低於 2%，低於今年早些時候，但與我們的預期一致。

Residential mortgage growth was 6% annualized in the quarter and consumer loan growth was 2%. Asset quality remained very strong with essentially no net loan charge-offs and NPLs were up from Q2 but still a very low 34 basis points of loans. I'll have more to add on the details behind these headlines as I go through my remarks.

本季住宅抵押貸款年增率為 6%，消費貸款成長率為 2%。資產品質仍然非常強勁，基本上沒有淨貸款核銷，不良貸款比第二季度有所上升，但貸款仍處於非常低的 34 個基點。在我發表演講時，我將更多地補充這些標題背後的細節。

Starting with the balance sheet. Assets declined by $400 million during the quarter to $21.1 billion. Cash declined $265 million as we lowered the amount of on-balance sheet cash we have been holding. Securities were lower by $268 million due to runoff and lower market values and loans were down by $54 million due to the sale of the shared national credit loans I just mentioned.

從資產負債表開始。該季度資產減少 4 億美元，至 211 億美元。由於我們減少了資產負債表內持有的現金數量，現金減少了 2.65 億美元。由於徑流和市值下降，證券減少了 2.68 億美元，由於出售我剛才提到的共享國家信用貸款，貸款減少了 5,400 萬美元。

Deposits were down $757 million due to reductions in broker deposits of $306 million, the maturity of a $230 million noncore term deposit from the Century acquisition and a seasonal decrease in municipal deposits of $375 million. Borrowings increased by $364 million to replace maturing brokered CDs. We made this shift to short-term borrowings to more easily facilitate the pay down of wholesale funding when we receive the cash from the EIG sale next week.

存款減少了 7.57 億美元，因為經紀人存款減少了 3.06 億美元、收購 Century 後 2.3 億美元的非核心定期存款到期以及市政存款季節性減少 3.75 億美元。借款增加了 3.64 億美元，用於替換到期的經紀 CD。我們轉向短期借款，是為了在下週收到 EIG 銷售的現金時更容易償還批發資金。

Shareholders' equity declined by $80 million due to a decrease in AOCI, partially offset by retained earnings. And book value ended the quarter at $13.87 per share and tangible book value ended the quarter at $10.14 per share. Net income was $59.1 million or $0.36 per diluted share and operating net income was $52.1 million or $0.32 per diluted share.

由於 AOCI 減少，股東權益減少了 8,000 萬美元，但被留存收益部分抵銷。本季末帳面價值為每股 13.87 美元，有形帳面價值本季末為每股 10.14 美元。淨利為 5,910 萬美元，即稀釋後每股 0.36 美元，營業淨利為 5,210 萬美元，即稀釋後每股 0.32 美元。

As I mentioned, there are significant number of items that created noise and I will try to point them out in my review. Net interest income was $137.2 million, down $4.4 million from the prior quarter. As I mentioned, the net interest margin was 2.77%, which was down 3 basis points from Q2. The decline in net interest income was primarily due to the reduced size of the balance sheet. As we outline on Page 8, loan yields were up 16 basis points on average in the quarter while total interest earning assets were up 10 basis points, in part due to the reduction in cash I mentioned earlier.

正如我所提到的，有大量的項目會產生噪音，我將嘗試在我的評論中指出它們。淨利息收入為 1.372 億美元，比上一季減少 440 萬美元。正如我所提到的，淨利差為2.77%，較第二季下降3個基點。淨利息收入下降主要是由於資產負債表規模縮小所致。正如我們在第 8 頁概述的那樣，本季貸款收益率平均上升 16 個基點，而生息資產總額上升 10 個基點，部分原因是我之前提到的現金減少。

Interest-bearing liability costs were up 20 basis points and deposit costs were up 11 basis points as well. We provided a waterfall chart on Page 8 to show the changes from Q2 to Q3, and we also show the 5-quarter trend for the net interest margin. The loan loss provision was $7.3 million and included specific reserves for 3 nonperforming office loans that I will describe in more detail later in my remarks.

有息負債成本上升 20 個基點，存款成本也上升 11 個基點。我們在第8頁提供了瀑布圖來顯示從第二季到第三季的變化，並且我們也顯示了淨利差的5季趨勢。貸款損失準備金為 730 萬美元，其中包括 3 筆不良辦公貸款的特別準備金，我將在稍後的演講中更詳細地描述這些準備金。

Noninterest income was $19.2 million and $20.7 million on an operating basis. This excludes the insurance revenue that's been reclassified to discontinued operations. As is outlined on Page 9, deposit service charges, trust, debit card and other fees are in line with last quarter and combined are up 8% from the prior year quarter. We took the opportunity to sell approximately $200 million of shared national credit loans out of our commercial loan portfolio at a $2.7 million loss during the quarter.

非利息收入為 1,920 萬美元，營業收入為 2,070 萬美元。這不包括已重新分類為已終止業務的保險收入。如第 9 頁所述，存款服務費、信託費、金融卡費和其他費用與上季持平，合計比去年同期成長 8%。我們藉此機會從商業貸款組合中出售了約 2 億美元的共享國家信用貸款，本季虧損 270 萬美元。

The sale of these loans triggered a release of associated reserves bringing the economic loss close to breakeven. The reason for the sale is very straightforward. We expect funding conditions to remain tight for the foreseeable future and this preserves some balance sheet capacity for our core lending customers. One additional note on this is that the loss is included in our operating results.

這些貸款的出售引發了相關準備金的釋放，使經濟損失接近收支平衡。出售的原因非常簡單。我們預計在可預見的未來融資條件將保持緊張，這為我們的核心貸款客戶保留了一定的資產負債表能力。對此還需要注意的是，該損失已包含在我們的經營業績中。

As you can see on Page 9 of the presentation, excluding this loss, operating noninterest income was essentially the same as Q2. Noninterest expense was $101.6 million or $98.7 million on an operating basis. As I've mentioned a few times, this excludes the expenses of Eastern Insurance, which were moved to discontinued operations. Q3's operating expense of $98.7 million is very similar to Q2 and an increase of 2% over the prior year, as we continue to focus on efficiency.

正如您在簡報第 9 頁上看到的，排除此損失，營業非利息收入與第二季基本相同。非利息支出為 1.016 億美元，按營運計算為 9,870 萬美元。正如我多次提到的，這不包括東方保險的費用，該費用已轉移到已終止的業務中。第三季的營運費用為 9,870 萬美元，與第二季非常相似，比上年增長 2%，因為我們繼續關注效率。

To repeat 1 of the comments Bob made, we have made significant progress on our expense efficiency since the IPO in 2020 and we look forward to creating more efficiencies as we merge with Cambridge in 2024. Our tax line includes several components from the securities loss on sale earlier in the year. As I mentioned, the insurance sale allows us to eliminate a $15 million valuation allowance we had set up back in Q1. Also because year-to-date, we are in a loss position, there are limited taxes on our overall results as well. When we record the insurance gain in Q4, we will be applying a higher tax rate, both on the gain and our operating results. I'll add some more comments on our taxes when I go over our outlook.

重複鮑伯的評論之一，自2020 年IPO 以來，我們在費用效率方面取得了重大進展，我們期待在2024 年與劍橋合併時創造更高的效率。我們的稅項包括證券損失的幾個組成部分今年稍早出售。正如我所提到的，保險銷售使我們能夠消除我們在第一季設立的 1500 萬美元的估值津貼。此外，由於今年迄今為止，我們處於虧損狀態，因此我們的整體業績的稅收也有限。當我們在第四季度記錄保險收益時，我們將對收益和經營業績採用更高的稅率。當我回顧我們的前景時，我將添加更多關於我們稅收的評論。

Switching gears to asset quality. We continue to be very focused on the challenges in commercial real estate in general and the office sector, in particular but we remain very confident in our long-term approach to dealing with customers, which serve us well throughout the rest of this cycle in all economic cycles. Saw an increase in nonperforming loans from $31 million to $48 million in the quarter. As a percentage of loans, the increase was from 22 basis points to 34 basis points. These are very low levels that we expect to see normalized higher up over time.

轉向資產品質。我們仍然非常關注商業房地產和辦公大樓領域的挑戰，但我們對與客戶打交道的長期方法仍然充滿信心，這在整個週期的剩餘時間內都為我們提供了良好的服務。經濟週期。本季不良貸款從 3,100 萬美元增加至 4,800 萬美元。佔貸款的百分比從 22 個基點增加到 34 個基點。這些水平非常低，我們預計隨著時間的推移會正常化。

Included in the increase were 3 investor office properties that totaled $26 million. We are working with the borrowers and expect these loans to move through the sale process over the next several quarters. Included in the provision for the quarter of $7.3 million, were specific reserves against these 3 loans to cover our expected losses from the sale process.

增加的資金包括 3 個投資者辦公物業，總價值為 2,600 萬美元。我們正在與借款人合作，預計這些貸款將在未來幾季完成銷售流程。本季 730 萬美元的撥備中包括針對這 3 筆貸款的特定準備金，以彌補我們在銷售過程中的預期損失。

Actual charge-offs for the quarter were less than 1 basis point. Aside from the office portfolio, all other loan categories are performing well and our credit metrics are in a very strong position. We updated the office portfolio presentation and included as Page 15 in the presentation and added some data that we haven't provided previously. We have $96 million of criticized and classified assets in the office portfolio, of which $26 million are the 3 new NPLs I just mentioned.

本季實際沖銷不到 1 個基點。除了辦公室投資組合外，所有其他貸款類別都表現良好，我們的信用指標處於非常有利的位置。我們更新了辦公室組合演示文稿，並將其作為第 15 頁包含在演示文稿中，並添加了一些我們之前未提供的數據。我們的辦公資產組合中有 9,600 萬美元的批評和分類資產，其中 2,600 萬美元是我剛才提到的 3 項新不良貸款。

Additionally, we have $100 million of loans that will mature before Q4 of '24 or approximately 14% of all investor office CRE. The $100 million of loan maturities is also a reasonable proxy for the annual maturities for the years after 2024 as well. Our expectations for the office portfolio remain the same. It's a challenging environment for all office properties, but especially those in urban markets and particularly those in the Boston Financial District. We will work with our borrowers as they work through the challenges and try and get to the other side. If they can't or won't do that, we'll protect our interest and manage to work out to optimize our proceeds.

此外，我們還有 1 億美元的貸款將在 2024 年第四季之前到期，約佔所有投資者辦公室 CRE 的 14%。 1 億美元的貸款到期日也是 2024 年之後年度到期日的合理代表。我們對辦公室投資組合的預期保持不變。對於所有辦公室物業來說，這是一個充滿挑戰的環境，尤其是城市市場的辦公室物業，尤其是波士頓金融區的辦公室物業。我們將與借款人合作，幫助他們克服挑戰並努力渡過難關。如果他們不能或不願意這樣做，我們將保護我們的利益並設法優化我們的收益。

As I mentioned, we provided specific reserves for the 3 office properties this quarter and we'll report on the progress of those assets as we move through the next few quarters. We'll also continue to report on the level of criticized and classified assets in the office portfolio as well.

正如我所提到的，我們本季為 3 個辦公物業提供了特定儲備，我們將在接下來的幾季報告這些資產的進展。我們也將繼續報告辦公室投資組合中受到批評和分類的資產的水平。

Turning to our outlook. We are looking forward to closing the insurance transaction next week. It's a very significant milestone, and we anticipate the gain to be approximately $260 million or in line with our prior guidance. We expect to have a 28% tax rate against the gain and also for our Q4 results. Typically, Q4 is a seasonally low period for funding in our municipal business and leads to higher levels of wholesale funding requirements as we experienced in 2022. This will put additional pressure on our net interest margin and net interest income in Q4 and early 2024. We expect the net interest margin to decline in Q4 to the mid-260s and for net interest income to be between $127 million and $132 million.

轉向我們的展望。我們期待下週完成保險交易。這是一個非常重要的里程碑，我們預計收益約為 2.6 億美元或與我們先前的指引一致。我們預計收益和第四季業績的稅率均為 28%。通常，第四季度是我們市政業務融資的季節性低谷時期，導致批發融資需求水平較高，正如我們在2022 年經歷的那樣。這將為我們第四季度和2024 年初的淨息差和淨利息收入帶來額外壓力。第四季淨利差預計將下降至 260 年代中期，淨利息收入將在 1.27 億美元至 1.32 億美元之間。

We expect operating noninterest income to be very similar to Q3 and to be in a range between $22 million and $25 million. We expect operating noninterest expenses to be $4 million to $5 million higher in Q4 due to higher marketing costs, some timing issues and some typical year-end items. Similar to this quarter, we expect to prioritize the strength of the balance sheet as we move forward. We continue to expect modest loan growth in Q4 and we will seek to keep wholesale borrowings as low as practical and to keep our capital levels robust.

我們預計營業性非利息收入將與第三季非常相似，介於 2,200 萬美元至 2,500 萬美元之間。由於行銷成本增加、一些時間安排問題和一些典型的年終項目，我們預計第四季度的營業非利息支出將增加 400 萬至 500 萬美元。與本季類似，我們預計在前進過程中優先考慮資產負債表的實力。我們仍然預計第四季度貸款將溫和增長，我們將尋求將批發借款保持在盡可能低的水平，並保持穩健的資本水平。

We believe focusing on our balance sheet strength will position us well for when the environment improves. As noted in our earnings release, our share repurchase authorization expired in the third quarter and there are restrictions on our ability to repurchase shares while the merger with Cambridge is pending. We look forward to seeking another repurchase authorization when allowable and also look forward to resuming our share repurchase activity.

我們相信，當環境改善時，專注於我們的資產負債表實力將使我們處於有利地位。正如我們在財報中指出的，我們的股票回購授權已於第三季到期，在與劍橋的合併懸而未決期間，我們回購股票的能力受到限制。我們期待在允許的情況下尋求另一次回購授權，也期待恢復我們的股票回購活動。

In closing, we believe we have a major opportunity in front of us with the Cambridge Trust merger. The combined company is expected to produce 20% earnings accretion in a very challenging environment, have significant levels of both regulatory and GAAP capital, a leading market share in some very attractive markets and a fully marked acquired balance sheet. The IRR for the transaction is 20%. We are very focused on the execution of the merger including the required regulatory and shareholder approvals, and report next quarter with an update as we approach the closing.

最後，我們相信劍橋信託合併為我們帶來了重大機會。合併後的公司預計將在極具挑戰性的環境中實現20% 的盈利增長，擁有高水平的監管資本和GAAP 資本，在一些非常有吸引力的市場中佔據領先的市場份額，並擁有完全標記的收購資產負債表。該交易的內部報酬率為20%。我們非常關注合併的執行，包括所需的監管和股東批准，並在下個季度報告接近完成時提供最新情況。

Thank you very much. And Julie, you can open up the lines for questions.

非常感謝。朱莉，你可以打開提問熱線。

(Operator Instructions) Your first question comes from Mark Fitzgibbon from Piper Sandler.

（操作員說明）您的第一個問題來自 Piper Sandler 的 Mark Fitzgibbon。

Maybe I could start off with a couple of questions around the SNCs. I was impressed by the price that you were able to sell those at, if my math is correct, sort of $0.985 on the dollar. I guess I was curious to whom did you sell them, maybe not specifically the buyer, but the type of buyer. And what do you have left in terms of the SNC portfolio?

也許我可以先問幾個有關 SNC 的問題。如果我的計算正確的話，你們能夠以 0.985 美元的價格出售這些產品，這給我留下了深刻的印象。我想我很好奇你把它們賣給了誰，也許不是特定的買家，而是買家的類型。 SNC 投資組合還剩下什麼？

Sure. No, good question, Mark. And without getting into precision, your assumption on the economics are pretty good. So good job on your part there. There's a pretty active market for that. I don't know who the buyer was or we think they were banks, but there's an active market for those assets. As we looked at the portfolio, those were the ones that made the most sense to us to sell, so I don't anticipate more of that, that's how I interpret part of your question. So we evaluated that pretty carefully, and those are the assets that made the most sense to us.

當然。不，好問題，馬克。在不考慮精確性的情況下，你對經濟學的假設是相當不錯的。你在那裡幹得很好。這有一個非常活躍的市場。我不知道買家是誰，或者我們認為他們是銀行，但這些資產有一個活躍的市場。當我們查看投資組合時，這些是對我們來說最適合出售的投資組合，所以我預計不會有更多的投資組合，這就是我對你問題的部分解釋。因此，我們非常仔細地評估了這一點，這些資產對我們來說最有意義。

And roughly, how much do you have in remaining SNCs, Jim?

吉姆，粗略地說，您剩餘的 SNC 還剩多少？

I'm going to have to follow up. Let me -- rather than go off to see (inaudible). We can follow up on that mark.

我得跟進一下。讓我——而不是去看（聽不清楚）。我們可以跟進該標記。

Okay. Fair enough. And then the $4 million to $5 million of year-end expenses that you referenced in your guidance, what is in that exactly?

好的。很公平。那麼您在指導中提到的 400 萬至 500 萬美元的年終費用到底是什麼？

Sure. So no -- that's a fair question. So if you break it down, marketing, we always do a lot of marketing in Q4. So we expect our marketing expenses to be $2 million higher than what they were in Q3, so that's a big component of it. Not to get too gritty, but our provision for off-balance sheet commitments is pretty volatile. It was volatile high in the first half of the year, it was volatile low and was actually negative in the third quarter, and we expect it to kind of revert to the mean in the fourth quarter. So that's another factor. And then the residual a couple of million dollars is just year-end sort of typical year-end expenses that get recorded at year-end.

當然。所以不——這是一個公平的問題。因此，如果你把行銷細分一下，我們總是在第四季進行大量行銷。因此，我們預計行銷費用將比第三季高出 200 萬美元，因此這是其中的一個重要組成部分。不要太嚴格，但我們對錶外承諾的準備金相當不穩定。上半年處於高位波動，第三季處於低位波動，實際上為負值，我們預計第四季度將恢復到平均值。這是另一個因素。然後剩餘的幾百萬美元只是年底記錄的典型年終費用。

Okay. And then on those 3 office loans, I wondered if you could share with us what the vacancy rates look like on those and maybe LTVs and debt service at origination.

好的。然後，關於這 3 筆辦公大樓貸款，我想知道您是否可以與我們分享這些貸款的空置率，也許還有貸款價值和貸款初期的償債情況。

Sure. So all 3 -- each 1 is a little bit different, but I think to answer your question, the characteristics are similar for all 3. All 3 of the buildings were sold well before the pandemic, the loan -- the original LTVs were 60%. They are battling vacancies now and cash flow issues. And we are working -- as I said, we are working with the borrowers to try and execute sales in those. And as I also said, we put some specific reserves up against all 3 of those to cover what we think will be the expected losses.

當然。所以所有3 棟建築——每棟建築都有點不同，但我想回答你的問題，所有3 棟建築的特徵都是相似的。所有3 棟建築在大流行之前都賣得很好，貸款——原來的LTV 是60 %。他們現在正面臨職缺和現金流問題。我們正在努力——正如我所說，我們正在與借款人合作，嘗試執行這些產品的銷售。正如我還說過的，我們針對所有這三個方面設置了一些特定準備金，以彌補我們認為的預期損失。

Okay. And then last question. You all seem fairly confident that you'll be able to close the Cambridge deal at the end of the first quarter, given that a lot of other banks have had an excruciatingly long approval process recently, what gives you confidence that you'll be able to close it so quickly?

好的。然後是最後一個問題。你們似乎都相當有信心能夠在第一季末完成劍橋交易，鑑於許多其他銀行最近經歷了極其漫長的審批流程，是什麼讓你們有信心能夠在第一季末完成劍橋交易？這麼快就關門了？

Yes. No, it's -- it's a good question. I understand the question. Sometimes I get surprised because if you look at our track record for deals, the Century one being the most recent, it's really the same time line. So it's similar to Century, it's an in-market transaction. We have very good regulatory relations as does Cambridge, as did Century. And as we have -- we're aware of the sort of slowness in some particular transactions, but we have very constant communication with our regulators and have set the dates and expect to complete on that timetable. As I said, if you go back and look at the Century, it's really -- it's a different time of the year, but it's the same time line.

是的。不，這是一個很好的問題。我明白這個問題。有時我會感到驚訝，因為如果你看看我們的交易記錄，世紀交易是最近的一筆，它實際上是同一時間線。所以它和Century類似，都是市場內交易。我們與劍橋、世紀一樣擁有非常良好的監管關係。正如我們所知道的那樣，我們意識到某些特定交易的緩慢，但我們與監管機構保持著非常持續的溝通，並設定了日期並期望在該時間表上完成。正如我所說，如果你回頭看一下世紀，你會發現，這是一年中的不同時間，但時間線是相同的。

Your next question comes from Damon DelMonte from KBW.

您的下一個問題來自 KBW 的 Damon DelMonte。

I just want to start off with a little bit on the topic of credit here and kind of looking at the reserve level and I know the build was specific to these 3 office loans. But just kind of wondering what your thoughts are going forward with the provision line kind of given the pullback in loan growth and what you're seeing elsewhere in the portfolio and the potential need to build reserves further from here?

我只想從這裡的信貸主題開始，並了解一下準備金水平，我知道該構建是針對這 3 筆辦公貸款的。但只是想知道，考慮到貸款成長的回落以及您在投資組合其他地方看到的情況以及進一步建立準備金的潛在需要，您對撥備額度有何看法？

Sure. No, fair question. And we -- as we talked previous quarters and certainly similar to others. Loan growth is a big factor in provisioning levels, right? If you look specifically at Eastern, if you look at when we had much faster loan growth last year, we had much higher provisions and the correlation is pretty clear from that. We do expect modest loan growth over the quarter, the fourth quarter and into the first quarter of next year. That will be a factor.

當然。不，公平的問題。正如我們在前幾個季度所談論的那樣，我們當然與其他人相似。貸款成長是撥備水準的重要因素，對吧？如果你具體看看東方，如果你看看去年我們的貸款成長速度更快，我們的準備金要高得多，而且相關性非常明顯。我們確實預計本季、第四季和明年第一季的貸款將出現溫和成長。這將是一個因素。

Our CECL methodology is very consistent and it's the same quarter-to-quarter. It starts with an economic forecast. To date, the economic outlook continues to be reasonably good, and that's a factor. If that were to change, then obviously, the CECL calculations would change. But over the last couple of quarters and what we see through literally October, whatever today's date 27, the economic outlook is still pretty strong. So we don't see the provision levels that we've seen both in '22 and '23 and the correlation with loan growth is what we would expect over the next quarter or two.

我們的 CECL 方法非常一致，每個季度都是相同的。首先是經濟預測。迄今為止，經濟前景仍然相當良好，這是一個因素。如果這種情況發生變化，那麼顯然 CECL 的計算也會改變。但從過去幾季以及整個 10 月的情況來看，無論今天的日期是 27 日，經濟前景仍然相當強勁。因此，我們沒有看到 22 年和 23 年的撥備水平，而與貸款成長的相關性正是我們對未來一兩個季度的預期。

Okay. That's helpful. And then with respect to the office portfolio and kind of the like 38% is in the Boston Cambridge area? Are there any other properties or locations that are showing early signs of stress that have kind of popped up on the radar? Or do you think these 3 loans were just unique situations and not indicative of a broader weakening?

好的。這很有幫助。然後，就辦公大樓投資組合等而言，38% 位於波士頓劍橋地區？是否有任何其他財產或地點顯示出壓力的早期跡象，這些跡像已經出現在雷達上？還是您認為這三筆貸款只是特殊情況，不代表更廣泛的經濟疲軟？

Yes. No, very good question, Damon, there's a lot there. Let me sort of unpack it a little bit out of time. So I think we do provide the statistics about Boston and Cambridge and not to get local here, but Cambridge is very different than Boston. There's a lot going on in Cambridge and we expect that to continue. If you look at the portfolio, generally, it is the Boston Financial District, where these 3 assets were and where the issues we expect to be concentrated. That's not to say there won't be issues in other places and we're carefully monitoring all of that. But the issues that were specific to these 3 loans that I described on Mark's question were very specific to the financial district. That's why we continue to monitor the entire portfolio very, very carefully.

是的。不，這是一個很好的問題，達蒙，有很多東西。讓我稍微花點時間來解開它。所以我認為我們確實提供了有關波士頓和劍橋的統計數據，並不是為了了解當地情況，但劍橋與波士頓有很大不同。劍橋正在發生很多事情，我們希望這種情況能持續下去。如果你看一下投資組合，一般來說，它是波士頓金融區，這三項資產都在那裡，我們預計問題也將集中在那裡。這並不是說其他地方不會出現問題，我們正在仔細監控所有這些。但我在馬克的問題中描述的這三筆貸款的具體問題是針對金融區的。這就是為什麼我們繼續非常非常仔細地監控整個投資組合。

Your next question comes from Laurie Hunsicker from Seaport Research Partners.

您的下一個問題來自 Seaport Research Partners 的 Laurie Hunsicker。

Hoping that I could just circle back where Damon was. So the 38% that you gave on your $717 million book, that's Boston and Cambridge, do you have the split as to what's just Boston Financial District?

希望我能繞回達蒙所在的地方。那麼，您在價值 7.17 億美元的書中投入了 38%，即波士頓和劍橋，您是否對波士頓金融區進行了分配？

We haven't provided that, Laurie. So we'd have to review that. I don't know it this second. We are very focused on the financial district and that's where these 3 loans were from, as I mentioned. We can [talk this] internally about providing a little bit more information on that specifically.

我們還沒有提供這一點，勞裡。所以我們必須對此進行審查。我現在還不知道。正如我所提到的，我們非常關注金融區，這就是這三筆貸款的來源。我們可以在內部[討論]具體提供更多相關資訊。

Great. Okay. And then just going back to the $26 million in nonperformers. What was the split there on those 3 properties in terms of Class A, Class B, Class C?

偉大的。好的。然後回到 2600 萬美元的不良資產。這 3 處房產在 A 級、B 級、C 級方面有何不同？

Yes. So I get a little worried about the Class A, Class B and Class C because different people have different definitions. But I think they would all be Class B types and they were all in the financial district in Boston.

是的。所以我對A類、B類和C類有點擔心，因為不同的人有不同的定義。但我認為他們都是B類，而且都在波士頓的金融區。

Okay. Great. And then can you share with us what actually triggered the nonperforming status, i.e., did they hit a maturity wall? Or was it just something else?

好的。偉大的。那麼您能否與我們分享一下到底是什麼觸發了不良狀態，即它們是否遇到了成熟度障礙？還是只是別的什麼？

Sure. So these are -- again, every loan -- every situation is slightly different. But I think in general, to answer the question the way you asked it, these are buildings that had lease issues, at least leases had come up. They had vacancies in the building, which led to deteriorating cash flow, and they had the borrowers have elected not to support the assets. Our strategy in that situation generally is to work with the borrowers to try and sell the buildings and as appropriate manner as possible to optimize price but also timing. And that's what happened really in all 3 of these cases.

當然。所以這些——同樣，每筆貸款——每種情況都略有不同。但我認為總的來說，按照你提出的方式回答這個問題，這些建築物有租賃問題，至少已經出現了租賃問題。他們的大樓有空置，導致現金流惡化，借款人選擇不支持這些資產。在這種情況下，我們的策略通常是與借款人合作嘗試出售建築物，並以盡可能適當的方式優化價格和時機。這就是這三個案例中真正發生的情況。

Got it. Got it. And then just in terms of thoughts on selling some office, some of your peers sold office loans in the third quarter. including 1 who took a $0.37 haircut, how do you think about selling these? Are you actively trying to sell them? Or what can you share with us there?

知道了。知道了。然後就出售一些辦公室的想法而言，你的一些同行在第三季出售了辦公室貸款。包括 1 名理髮師 0.37 美元的人，你覺得賣掉這些怎麼樣？您是否正在積極嘗試出售它們？或者您可以在那裡與我們分享什麼？

Yes. So I would say our managed asset team who does a very good job here. Every time they get an asset and the same would be true for these 3 very and this didn't just these issues just didn't appear late in the third quarter. They've been monitoring these loans for a period of time. But to answer the question, they do an asset-by-asset review and figure out the optimal strategy. They include things like note sales, as you referenced, the benefits being it moves out quickly. Sometimes price is less than one would like there. But for each individual asset based on the facts and circumstances that strategy is developed. In the cases of these 3, it's to take the buildings themselves through the sale process. That's how we thought we would optimize our proceeds.

是的。所以我想說我們的管理資產團隊在這裡做得非常好。每當他們獲得一項資產時，這三個資產也會發生同樣的情況，這不僅僅是這些問題，只是在第三季末才出現。他們已經監控這些貸款一段時間了。但為了回答這個問題，他們會逐項進行資產審查並找出最佳策略。正如您所提到的，它們包括諸如票據銷售之類的事情，其好處是它可以快速轉移。有時價格低於人們想要的價格。但對於每一項資產，策略都是根據事實和情況制定的。在這三個例子中，是讓建築物本身完成銷售過程。這就是我們認為優化收益的方式。

Got it. Got it. And then just sort of 1 last question on this. The $717 million investor CRE book, what is the specific reserve you have against that? Is it just on the 3 loans, i.e. the $7 million or is there more there?

知道了。知道了。然後是最後一個問題。價值 7.17 億美元的投資者 CRE 帳簿，您對此有何具體準備金？是僅涉及 3 筆貸款，即 700 萬美元，還是還有更多？

So we have specific reserves against the 3 loans that we've been talking about and you just referenced. And in addition to that, the CECL calculation that we do has a lot of risk factors for all commercial real estate and included in there are certain attributes that we think the office portfolio has but it's in the general reserve in that way. So I think the way you're asking the question, it's really just the specific reserves on these 3 assets.

因此，我們對我們一直在談論的和您剛才提到的三筆貸款有特定的準備金。除此之外，我們所做的 CECL 計算對所有商業房地產都有很多風險因素，並且包括我們認為辦公大樓投資組合具有的某些屬性，但它以這種方式包含在一般儲備中。所以我認為你問問題的方式其實只是這三種資產的特定儲備。

That's (inaudible) million. Okay. Great. That's helpful. And then just going back to the SNC sale, can you help us think about when in the quarter that occurred or impact the margin in the quarter? Or how much in net interest income it did or didn't contribute. Just trying to understand and then if you also have a spot margin for the month of September, that would be helpful.

那是（聽不清楚）百萬。好的。偉大的。這很有幫助。然後回到 SNC 銷售，您能否幫助我們考慮一下發生在該季度的時間或影響該季度的利潤率？或它貢獻或沒有貢獻多少淨利息收入。只是想了解一下，如果您還有 9 月的即期保證金，那將會有所幫助。

Yes. So I'll probably start there because it's pretty consistent -- it's very consistent with our guidance for Q4. So the closing margin was in the 260s, again, consistent with our guidance. To answer your question, the SNC sales wasn't 1 loan, it was multiple loans and they happened over the quarter. It tended to be a little bit earlier in the quarter.

是的。所以我可能會從這裡開始，因為它非常一致——它與我們對第四季度的指導非常一致。因此，收盤利潤率再次達到 260 美元，與我們的指導一致。為了回答你的問題，SNC 銷售不是一筆貸款，而是多筆貸款，而且是在本季發生的。本季的時間往往要早一些。

The one thing I always get worried about doing 1 specific month on the margin, there's always lots of ins and outs, and September happens to be a seasonally lower month for municipal deposits. So September has a little bit more in borrowings than the months of August and July. And also there's a day count difference not to get too greedy, but there's a day count July and August at 31 days, which may not sound like much, but can have an impact as well. But to answer your question, the exit margin was in the 260s and very comparable to the guidance we gave for Q4.

我總是擔心在某個特定月份的邊際上做的一件事是，總是有很多來龍去脈，而九月恰好是市政存款季節性較低的月份。因此，9 月的借款比 8 月和 7 月要多一些。而且還有一個天數差異，不要太貪心，但 7 月和 8 月的天數為 31 天，這聽起來可能不多，但也會產生影響。但為了回答你的問題，退出利潤率在 260 左右，與我們為第四季度給出的指導非常相似。

Okay. And then just any -- I don't know. Do you have a rate on where the next were? Maybe that's the better way to ask it?

好的。然後就是任何——我不知道。您對下一個在哪裡有評價嗎？也許這是更好的提問方式？

I don't have it as I'm sitting here now, we can think about that and they were just -- the one thing I can say is they were variable loans priced over SOFR, variable loans price over SOFR.

我現在坐在這裡，我們可以考慮一下，我能說的一件事是，它們是定價高於 SOFR 的可變貸款，高於 SOFR 的可變貸款價格。

Okay. Okay. And then last question on CATC on their office. Can you provide us with any update on their book, I think it's around $285 million. if you have any new update or just any other color you could add on their office book and how you're thinking about it.

好的。好的。然後是他們辦公室關於 CATC 的最後一個問題。您能否向我們提供有關他們的書的任何更新資訊？我認為該書的價值約為 2.85 億美元。如果您有任何新的更新或任何其他顏色，您可以在他們的辦公簿上添加以及您的想法。

So sure. I think I'll probably repeat some of the things that we've said in the past, we're at point in the process where Cambridge is still a very independent company. So I don't feel like we can say too much more than we've said. But when we did extensive due diligence on the -- on all their loans but also the office portfolio.

非常確定。我想我可能會重複我們過去說過的一些事情，我們正處於劍橋仍然是一家非常獨立的公司的過程中。所以我覺得我們不能說太多了。但是，當我們對他們的所有貸款以及辦公室投資組合進行廣泛的盡職調查時。

In many ways, it's similar to Easterns meaning it's concentrated in our markets. It does have some exposure to Boston, but it's got exposure outside of Boston as well. And in many ways, it looks a lot like the Eastern portfolio. I will say, we carefully reviewed it in due diligence, talked about at the time of the announcement, not just our due diligence process but also some of the purchase accounting that we assumed there. which included an evaluation of the office portfolio. I think 1 of your questions as we get closer to closing, we'll be giving updates generally and be happy to include more on that subject as we get closer.

在很多方面，它與東方人相似，這意味著它集中在我們的市場。它確實在波士頓有一些曝光，但在波士頓以外的地方也有曝光。在很多方面，它看起來很像東方投資組合。我想說的是，我們在盡職調查中仔細審查了它，在發佈公告時談到了，不僅是我們的盡職調查過程，還有我們在那裡假設的一些購買會計。其中包括對辦公室組合的評估。我認為您的一個問題是，當我們接近結束時，我們將總體上提供更新，並很樂意在接近結束時提供有關該主題的更多資訊。

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

目前沒有其他問題。我會將電話轉回鮑伯·里弗斯（Bob Rivers），讓他發表結束語。

Great. So thanks, everyone, for your interest and your questions today, and best wishes for the remainder of the year. Happy holidays.

偉大的。謝謝大家今天的關注和提問，並祝福大家在今年剩下的時間裡一切順利。節日快樂。

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

今天的電話會議到此結束。您現在可以斷開連線。