Enterprise Financial Services Corp (EFSC) 2022 Q4 法說會逐字稿

At this time, I would like to welcome everyone to the Enterprise Financial Services Corp. Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Thank you. I will now turn the call over to Jim Lally, President and CEO. You may begin.

此時，我想歡迎大家參加 Enterprise Financial Services Corp. 2022 年第四季度收益電話會議。 （操作員說明）謝謝。我現在將把電話轉給總裁兼首席執行官吉姆拉利。你可以開始了。

Colby, thank you, and thank you all very much for joining us this morning, and welcome to our 2022 forth quarter earnings call. Joining me this morning is Keene Turner, EFSC's Chief Financial Officer and Chief Operating Officer; and Scott Goodman, President of Enterprise Bank & Trust. Before we begin, I would like to remind everybody on the call that a copy of the release and the company presentation can be found on our website.

科爾比，謝謝你，非常感謝大家今天早上加入我們，歡迎來到我們 2022 年第四季度的財報電話會議。今天早上加入我的是 EFSC 的首席財務官兼首席運營官 Keene Turner；和 Enterprise Bank & Trust 總裁斯科特·古德曼 (Scott Goodman)。在我們開始之前，我想提醒電話中的每個人，可以在我們的網站上找到新聞稿和公司介紹的副本。

The presentation and earnings release were furnished on SEC Form 8-K yesterday. Please refer to Slide 2 of the presentation titled Forward-Looking Statements in our most recent 10-K and 10-Q for reasons why actual results may vary from any forward-looking statements that we make today. Throughout 2022, we stressed our commitment to building partnerships with our clients, the execution of our strategic initiatives and our diversified business platform.

昨天在 SEC 表格 8-K 上提供了演示文稿和收益發布。請參閱我們最近的 10-K 和 10-Q 中標題為前瞻性陳述的演示文稿的幻燈片 2，了解實際結果可能與我們今天所做的任何前瞻性陳述不同的原因。在整個 2022 年，我們強調了我們致力於與客戶建立夥伴關係、執行我們的戰略計劃和我們多元化的業務平台。

This cadence of consistency produced record results for both the fourth quarter and for the entire year. The financial highlights for the fourth quarter begin on Slide 3. We capped the year with tremendous momentum, both for loan growth as well as earnings. We earned $1.58 per share for the fourth quarter which resulted in a 1.83% return on average assets and a 23% return on tangible common equity.

這種一致性的節奏為第四季度和全年創造了創紀錄的業績。第四季度的財務亮點從幻燈片 3 開始。我們以巨大的勢頭結束了這一年，無論是貸款增長還是收益。我們第四季度每股盈利 1.58 美元，平均資產回報率為 1.83%，有形普通股回報率為 23%。

This is inclusive of our tangible common equity to tangible assets ratio expanding during the quarter and we closed the year at 8.43%. Additionally, our robust earnings helped to contribute approximately $2 per share to our tangible book value during the fourth quarter which closed at $28.67 per share.

這包括我們在本季度擴大的有形普通股與有形資產的比率，我們在這一年結束時為 8.43%。此外，我們強勁的收益有助於在第四季度為我們的有形賬面價值貢獻約每股 2 美元，收於每股 28.67 美元。

Turning to Slide 4. You can see that we had an outstanding quarter with respect to loan growth. On an annualized basis, we were able to grow the loan portfolio by 16%. Moreover, the diversification on which we have focused was on full display as just about every market in business line contributed to these outstanding results. Scott will provide much more color about these markets and businesses in his comments.

轉到幻燈片 4。您可以看到我們在貸款增長方面有一個出色的季度。按年率計算，我們能夠將貸款組合增長 16%。此外，我們所關注的多元化得到了充分展示，因為業務線中的幾乎每個市場都為這些出色的業績做出了貢獻。斯科特將在他的評論中提供更多關於這些市場和企業的色彩。

Our posture on deposits has not changed. We continue to actively manage deposit rates and focus on the relationship aspect of this side of our business. The goal is to find the appropriate balance between retention, growth, competitiveness and stability. I'm really pleased with how this has played out as evidenced by the De minimis amount of runoff, a relatively low cost of total deposits and a stable DDA percentage right around 42%.

我們對存款的態度沒有改變。我們繼續積極管理存款利率，並專注於我們業務這一方面的關係方面。目標是在保留、增長、競爭力和穩定性之間找到適當的平衡點。我真的很高興這是如何發揮作用的，最低徑流量、相對較低的總存款成本和穩定的 DDA 百分比都在 42% 左右。

This level of discipline, coupled with the rise in short-term interest rates resulted in a net interest margin expansion of 56 basis points. Our credit statistics remain outstanding as both nonperforming loans to total loans and nonperforming assets to total assets improved from the very low levels that we reported at the end of the third quarter.

這種程度的紀律，加上短期利率的上升，導致淨息差擴大了 56 個基點。由於不良貸款佔貸款總額和不良資產佔總資產的比例均較第三季度末報告的極低水平有所改善，因此我們的信貸統計數據仍然很出色。

We did record a modest provision expense in the quarter due to our strong loan growth outpacing the risk reduction in the portfolio during the fourth quarter. Slide 5 provides a recap of our highlights for the full year. On a fully diluted basis, we earned $5.31 per share in 2022 an increase of 38% from 2021. We grew portfolio loans at a rate of 11% for the year, with contributions from all of our regions and businesses.

由於我們強勁的貸款增長超過了第四季度投資組合的風險降低，我們在本季度確實記錄了適度的撥備費用。幻燈片 5 回顧了我們全年的亮點。在完全稀釋的基礎上，我們在 2022 年的每股收益為 5.31 美元，比 2021 年增長了 38%。在我們所有地區和業務的貢獻下，我們全年的投資組合貸款增長率為 11%。

Along with our balance sheet performance, this growth supported our record financial results. Our pre-provision net revenue expanded 25% over the prior period. This helped drive a pre-provision net revenue return on average assets that easily surpassed 2% to end 2022.

連同我們的資產負債表表現，這種增長支持了我們創紀錄的財務業績。我們的撥備前淨收入比上一期間增長了 25%。這有助於推動平均資產的撥備前淨收入回報率輕鬆超過 2%，到 2022 年底。

All in all, 2022 was an incredible year for EFSC. We entered the year with a focused mindset of delivering consistent results. The record earnings per share that we produce is a product of a well-executed plan that focused on diversified revenue growth, disciplined pricing within our deposit base, consistent credit and pricing fundamentals, patient and thoughtful capital and investment management and responsible expense management. As we turn the page and head into 2023, our areas of focus, which are found on Slide 6 have not changed.

總而言之，2022 年對 EFSC 來說是不可思議的一年。我們以提供一致結果的專注心態進入這一年。我們創造的創紀錄的每股收益是一項執行良好的計劃的產物，該計劃專注於多元化的收入增長、我們存款基礎內的紀律定價、一致的信貸和定價基礎、耐心和周到的資本和投資管理以及負責任的費用管理。當我們翻過這一頁並進入 2023 年時，幻燈片 6 上的重點領域沒有改變。

Despite the continual change of our operating environment, which include ongoing short-term rate increases, intense deposit competition and the likelihood of a mild recession, we are confident of our ability to perform at the high level that we have become accustomed to. The conversations we've had with our clients gives us confidence that 2023 should be another outstanding year for EFSC.

儘管我們的經營環境不斷變化，包括持續的短期利率上升、激烈的存款競爭和溫和衰退的可能性，但我們相信我們有能力以我們已經習慣的高水平表現。我們與客戶的對話讓我們相信，2023 年對於 EFSC 來說應該是又一個傑出的一年。

For the most part, backlogs and order books of the operating companies that we serve are strong with corporate balance sheets that provide ample room for continued growth. They are still dealing with some of the same issues that have become commonplace such as sufficient competent labor and reliable supply chains. However, we do not see these issues as derailers to the success of these businesses.

在大多數情況下，我們服務的運營公司的積壓訂單和訂單簿都很強勁，公司資產負債表為持續增長提供了充足的空間。他們仍在處理一些已經變得司空見慣的相同問題，例如充足的稱職勞動力和可靠的供應鏈。然而，我們並不認為這些問題會影響這些企業的成功。

We feel good about the continued growth of our investor CRE business due to the many projects that have broken ground in late 2021 and throughout 2022. New projects have been slower to materialize as the sharp rise in interest rates require the owner developers to recalibrate their input metrics inclusive of additional equity. On the deposit side of things, we believe that we will continue to see a bit of pressure on rates throughout the year.

由於許多項目在 2021 年底和整個 2022 年破土動工，我們對我們的投資者 CRE 業務的持續增長感到滿意。由於利率急劇上升要求業主開發商重新調整他們的投入，新項目的實現速度較慢指標包括額外的股權。在存款方面，我們相信全年我們將繼續看到利率面臨一些壓力。

There's always a lag on rate increases, especially for higher balance commercial accounts. We've been hard at work throughout much of 2022 identifying specifically where we need to make proactive movements to preserve these highly valued relationships and feel very good about where they stand. With that said, I feel very confident that we can fund our expected loan growth with the various deposit generators that we currently have.

加息總是滯後的，尤其是對於餘額較高的商業賬戶。在 2022 年的大部分時間裡，我們一直在努力工作，具體確定我們需要在哪些方面採取積極主動的行動來維護這些高度寶貴的關係，並對它們的現狀感到非常滿意。話雖如此，我非常有信心我們可以用我們目前擁有的各種存款生成器為我們預期的貸款增長提供資金。

With that, I would like to turn the call over to Scott Goodman, President of Enterprise Bank & Trust for his insights about our markets and business lines. Scott?

有了這個，我想把電話轉給 Enterprise Bank & Trust 總裁斯科特·古德曼 (Scott Goodman)，請他了解我們的市場和業務線。斯科特？

Thank you, Jim, and good morning, everyone. As you'll see on Slide #7, loans at year-end totaled just over $9.7 billion, representing an 11.3% increase from the prior year, net of PPP. Although, $984 million of core growth was well diversified across the major loan categories as detailed on Slide #8.

謝謝你，吉姆，大家早上好。正如您將在幻燈片 #7 中看到的那樣，年末貸款總額剛剛超過 97 億美元，較上年增長 11.3%（扣除 PPP）。儘管如此，9.84 億美元的核心增長在主要貸款類別中得到了很好的多元化，如幻燈片 #8 所詳述。

Strong growth in C&I reflects continued success in attracting new operating company relationships across our footprint. Specialty business lines contributed a similar level of growth overall as C&I and also continue to perform consistently. Growth in commercial real estate, while more modest overall generally reflects an intentional approach to partner and go deeper with a select set of strong investors and developers in each market rather than chase projects or transactions.

C&I 的強勁增長反映了我們在吸引新的運營公司關係方面的持續成功。專業業務線貢獻了與 C&I 相似的整體增長水平，並且繼續保持一致的表現。商業房地產的增長雖然總體上較為溫和，但通常反映了一種有意的合作方式，並與每個市場中精選的強大投資者和開發商進行更深入的合作，而不是追逐項目或交易。

Q4 was a period of strong loan growth as reflected on Slide #9 with contributions by nearly all markets and lines of business. Originations for the quarter were up nearly 15% from the prior period. Q4 is typically a seasonally strong loan production quarter for us but this was further bolstered by wins on a number of larger new C&I relationships and nice performance out of the gate by our new team in Dallas.

正如幻燈片 #9 所示，第四季度是貸款增長強勁的時期，幾乎所有市場和業務線都做出了貢獻。本季度的發起人數比上一時期增長了近 15%。對我們來說，第四季度通常是一個季節性強勁的貸款生產季度，但在一些更大的新 C&I 關係中的勝利以及我們在達拉斯的新團隊的良好表現進一步推動了這一點。

The specialty lending units contributed roughly 1/3 of the growth this quarter with an aggregate increase of $141 million. SBA finished strong, posting growth of $43 million in the quarter despite the continuing headwinds of higher short-term rates. The team is focused on proactive steps to moderate payoff activity with existing borrowers and continued consistency in our product offering to the market with a relatively stable pipeline heading into 2023. Life insurance premium finance had a seasonally strong quarter, based on the timing of premium renewals in the book.

專業貸款部門貢獻了本季度約 1/3 的增長，總計增長 1.41 億美元。 SBA 表現強勁，儘管短期利率上升的持續不利因素仍在本季度實現了 4300 萬美元的增長。該團隊專注於採取積極措施，以減少與現有借款人的還款活動，並繼續保持我們向市場提供的產品的一致性，並在進入 2023 年之前提供相對穩定的產品線。根據保費續訂的時間，人壽保險保費融資季度表現強勁在書裡。

But growth has been further accelerated by additional new referral partners in 2022, including new opportunities from the legacy First Choice book, which we've been able to nurture and grow. Tax credit also executed well with $52 million of quarterly growth, pushing the total to $73 million or 15% for the year.

但 2022 年更多新的推薦合作夥伴進一步加速了增長，包括我們已經能夠培養和發展的遺留 First Choice 書中的新機會。稅收抵免也執行良好，季度增長 5200 萬美元，將全年總額推高至 7300 萬美元或 15%。

Strong quarter mainly reflects advances on the existing projects in process along with several new ones. The necessity for affordable housing and the continued adoption of these programs by more states should provide continuity of our opportunity pipeline in this business looking forward.

強勁的季度主要反映了現有在建項目以及幾個新項目的進展。經濟適用房的必要性以及更多州繼續採用這些計劃應該會為我們在未來的業務中提供機會管道的連續性。

Sponsor Finance posted a small decline in the portfolio for the quarter, mainly relating to slightly lower origination activity and some churn in the existing book through to the sale of platform companies.

Sponsor Finance 本季度的投資組合略有下降，這主要與發起活動略有減少以及現有賬簿的一些變動以及平台公司的出售有關。

Year-over-year growth for this business has been quite strong at $127 million or 25%. Much of the activity in this channel is timing contingent due to the aspects of the M&A process and the lower origination volume reflects some delayed closings, which will carry over into Q1. In general, though, the pipeline of new deals for the specialty remains healthy and active.

該業務的同比增長相當強勁，達到 1.27 億美元或 25%。由於併購過程的各個方面，該渠道的大部分活動都是時間性的，較低的發起量反映了一些延遲的關閉，這將延續到第一季度。不過，總的來說，該專業的新交易渠道仍然健康活躍。

Turning now to the regional results, which are on Slide 10. Our Midwestern markets of St. Louis and Kansas City grew $99 million in Q4 and posting year-over-year growth of 9.4% both markets experienced a modest increase in revolving line outstandings and had solid new origination activity in the quarter. Notably, we onboard several new middle market C&I relationships along with a nice volume of refinance and new commercial real estate development loans in the Kansas City market.

現在轉到幻燈片 10 上的區域結果。我們的中西部市場聖路易斯和堪薩斯城在第四季度增長了 9900 萬美元，同比增長 9.4%，這兩個市場的循環線未償付和本季度有穩固的新發起活動。值得注意的是，我們在堪薩斯城市場上加入了幾個新的中間市場 C&I 關係以及大量的再融資和新的商業房地產開發貸款。

Our Southwestern markets grew by $81 million for the quarter, resulting in solid year-over-year growth of 14.6%. This includes $27 million in growth from our new Texas team, bringing their production to $43 million for 2022. This office, which opened midyear is off to a strong start and with a nice balance of both new C&I and commercial real estate clients. The Arizona team also had some nice closing this period including a large retail center for a new investor relationship and a development loan for a large, well-known community-based organization serving children in the Phoenix Metro under a new market tax credit structure.

本季度我們的西南市場增長了 8100 萬美元，實現了 14.6% 的穩健同比增長。這包括我們新的德克薩斯團隊帶來的 2,700 萬美元的增長，使他們在 2022 年的產量達到 4,300 萬美元。該辦公室於年中開業，開局良好，新的 C&I 和商業房地產客戶之間取得了良好的平衡。亞利桑那州團隊在此期間也有一些不錯的收尾，包括一個大型零售中心用於建立新的投資者關係，以及為一個大型、知名的社區組織提供開發貸款，該組織在新的市場稅收抵免結構下為 Phoenix Metro 的兒童服務。

In Southern California, we grew $51 million in the quarter and are building nice momentum heading into 2023. We continue to execute a strategy in this market of expanding the legacy relationships from predecessor banks and developing a larger C&I portfolio through talent acquisitions. This period, we onboarded several new C&I relationships, assisted a large legacy franchise operator with an acquisition and materially expanded a credit facility with a legacy CRE investor. Moving now to deposits, which are on Slides #11 and 12.

在南加州，我們本季度增長了 5100 萬美元，並在進入 2023 年時保持良好勢頭。我們繼續在這個市場上執行一項戰略，即擴大與前身銀行的傳統關係，並通過人才收購開發更大的 C&I 投資組合。在此期間，我們加入了幾個新的 C&I 關係，協助一家大型傳統特許經營運營商進行收購，並大幅擴大了與傳統 CRE 投資者的信貸額度。現在轉到幻燈片 #11 和 12 上的存款。

Total deposit balances were down $229 million for the quarter, and $515 million or 4.5% year-over-year. Breaking this down, noninterest-bearing accounts were stable for the quarter and up year-over-year. The declines were really isolated to the interest-bearing categories, with the majority of the funds being a limited number of higher cost transactional accounts or idle balances of larger businesses. As you heard from Jim, we've taken an intentional approach of selectively managing our deposit pricing to prioritize retention, deepen our key relationships and attract new ones.

本季度總存款餘額減少 2.29 億美元，同比減少 5.15 億美元或 4.5%。細分來看，本季度無息賬戶穩定，同比增長。下降實際上只限於生息類別，大部分資金是數量有限的高成本交易賬戶或大型企業的閒置餘額。正如您從吉姆那裡聽到的那樣，我們採取了一種有意識的方法來有選擇地管理我們的存款定價，以優先考慮保留、加深我們的關鍵關係並吸引新的關係。

We've also developed a number of competitive deposit options for clients and our bankers are having proactive conversations to mitigate outflows. The deposit breakdown on Slide #13 provides some clarity by region. Larger impacts tend to be within our more concentrated C&I markets and legacy portfolios. In the Midwest, for example, a large portion of their $281 million decline for the quarter is attributable to a single upper middle market company that we had assisted with a Main Street loan.

我們還為客戶開發了許多有競爭力的存款選擇，我們的銀行家正在積極對話以減少資金外流。幻燈片 #13 上的存款明細按地區提供了一些清晰度。更大的影響往往發生在我們更集中的 C&I 市場和傳統投資組合中。例如，在中西部地區，他們本季度 2.81 億美元的跌幅中有很大一部分歸因於我們曾協助其獲得 Main Street 貸款的一家中高端市場公司。

Upon recent repayment of the Main Street loan, we were unable to retain the full relationship, which moved back to a national bank along with the accompanying deposits of roughly $120 million in the quarter. More generally, though, we have been successful in growing relationship-based balances, originating over $1 billion of deposits from new relationships during the year, with average balances for these new accounts, materially exceeding those in closed accounts. Lastly, I'd like to point to the growth of our specialty deposit verticals, which are detailed on Slide #14, and which continue to enhance our flexibility to optimize our funding strategy.

在最近償還 Main Street 貸款後，我們無法保留完整的關係，該關係連同本季度約 1.2 億美元的伴隨存款一起移回了一家國家銀行。不過，更一般地說，我們在增加基於關係的餘額方面取得了成功，年內從新關係中產生了超過 10 億美元的存款，這些新賬戶的平均餘額大大超過了已關閉賬戶的餘額。最後，我想指出我們專業存款垂直領域的增長，幻燈片 #14 對此進行了詳細介紹，這將繼續增強我們優化融資策略的靈活性。

During Q4, balances grew within each of our specialties, community associations, property management and third-party escrow. Specialized deposits in aggregate grew $102 million in the quarter and $302 million or 13.6% for the year. Now I'd like to turn the call over to Keene Turner for further financial highlights. Keene?

在第四季度，我們每個專業、社區協會、物業管理和第三方託管的餘額都有所增長。本季度專業存款總額增長 1.02 億美元，全年增長 3.02 億美元或 13.6%。現在我想把電話轉給 Keene Turner 以獲得進一步的財務亮點。基恩？

Thanks, Scott, and good morning, everyone. My comments begin on Slide 15, where we reported earnings per share of $1.58 in the fourth quarter on net income of $60 million.

謝謝，斯科特，大家早上好。我的評論從幻燈片 15 開始，我們報告第四季度每股收益為 1.58 美元，淨收入為 6000 萬美元。

Organic growth in earning assets and continued margin expansion drove a meaningful increase in operating revenue in the fourth quarter. This led to record earnings per share that expanded 20% from the third quarter.

盈利資產的有機增長和利潤率的持續擴張推動了第四季度營業收入的顯著增長。這導致創紀錄的每股收益比第三季度增長了 20%。

Noninterest expense and the provision for credit losses both increased in the quarter, but these increases were more than offset by the 16% sequential increase in operating revenue. For full year 2022, we reported net income of $203 million and earnings per share of $5.31 compared to $3.86 in the prior year.

本季度非利息費用和信貸損失準備金均有所增加，但這些增加被營業收入連續 16% 的增長所抵消。 2022 年全年，我們報告的淨收入為 2.03 億美元，每股收益為 5.31 美元，而上一年為 3.86 美元。

Turning to Slide 16. Net interest income for the quarter was $139 million compared to $124 million in the linked quarter, an increase of $15 million. The increase came as a result of higher average loan balances, along with the benefit of increasing interest rates, driving our asset yields higher.

轉到幻燈片 16。本季度的淨利息收入為 1.39 億美元，而上一季度為 1.24 億美元，增加了 1500 萬美元。增加的原因是平均貸款餘額增加，加上利率上升的好處，推動我們的資產收益率更高。

The increase in net interest income was primarily driven by a $21 million increase in loan income and was partially offset by a $6 million increase in deposit expense. With the current composition of our balance sheet as of December 31, we expect the full impact of the existing interest rate increases will result in a quarterly net interest income in the range of $143 million to $146 million.

淨利息收入的增長主要是由於貸款收入增加 2100 萬美元，部分被存款支出增加 600 萬美元所抵消。根據截至 12 月 31 日我們資產負債表的當前構成，我們預計現有加息的全部影響將導致季度淨利息收入在 1.43 億美元至 1.46 億美元之間。

As noted in the earnings release, approximately 17% of the variable rate loan portfolio reprices on the first day of each quarter and did not benefit from the fourth quarter interest rate increases. We expect that with the Fed reducing the magnitude of interest rate increases, that first and second quarter actions will be largely offset by lagged deposit costs.

正如收益發布中指出的那樣，大約 17% 的可變利率貸款組合在每個季度的第一天重新定價，並且沒有從第四季度的加息中受益。我們預計，隨著美聯儲降低加息幅度，第一和第二季度的行動將在很大程度上被滯後的存款成本所抵消。

We're experiencing better-than-expected pricing on interest-bearing deposits. However, we do expect that we will continue to address deposit costs and competition in 2023. That is to say that net interest income growth will be correlated with loan growth and any additional actions by the Fed. Moving on to Slide 17, net interest margin on a tax equivalent basis was 4.66%, an increase of 56 basis points from the linked quarter.

我們的計息存款定價好於預期。然而，我們確實預計我們將在 2023 年繼續解決存款成本和競爭問題。也就是說，淨利息收入增長將與貸款增長和美聯儲的任何額外行動相關。轉到幻燈片 17，按稅收等值計算的淨息差為 4.66%，較上一季度增加 56 個基點。

With an asset-sensitive balance sheet, we continue to benefit from rising rates and asset yield rose more than liability costs in the period. Earning asset yields improved 78 basis points which included 77 basis points of loan yield improvement, including a 6.64% origination rate on new loans and the investment yield improved 26 basis points as reinvestment rates continue to increase to a 5.2% fourth quarter tax equivalent rate.

憑藉對資產敏感的資產負債表，我們繼續受益於利率上升，資產收益率在此期間的漲幅超過負債成本。盈利資產收益率提高了 78 個基點，其中貸款收益率提高了 77 個基點，包括 6.64% 的新貸款發放率，投資收益率提高了 26 個基點，因為再投資率在第四季度繼續增加到 5.2% 的稅收等值率。

Asset yields were also aided by an enhanced asset mix as we continue to grow loans and investments while reducing cash balances. The cost of interest-bearing liabilities increased 40 basis points from the prior period, driven mainly by higher deposit rates and variable rate borrowings. Our deposit portfolio remains more than 40% noninterest-bearing balances, which allows us to be more deliberate with deposit pricing compared to prior rate cycles.

隨著我們繼續增加貸款和投資，同時減少現金餘額，資產組合的改善也有助於提高資產收益率。有息負債成本較上一期增加 40 個基點，主要受較高存款利率和浮動利率借款的推動。我們的存款組合中仍有超過 40% 的無息餘額，這使我們能夠比之前的利率週期更加慎重地制定存款定價。

The loan portfolio is our largest driver of asset sensitivity as 63% of loans are variable rate. More than 60% of those have interest rate floors. And essentially, all of those with floors are currently priced above the floor. While our variable rate loans have enhanced earnings during this cycle, we executed several interest rate swaps in the fourth quarter to protect future earnings if rates should begin to move in the opposite direction.

貸款組合是我們資產敏感性的最大驅動因素，因為 63% 的貸款是可變利率的。其中超過 60% 有利率下限。從本質上講，所有有地板的房屋目前的價格都高於地板。雖然我們的可變利率貸款在這個週期內提高了收益，但我們在第四季度執行了幾次利率互換，以在利率開始向相反方向移動時保護未來收益。

Our interest-bearing deposit beta was approximately 30% in the fourth quarter. And while it is higher than the previous period in 2022, it remains below our expected and historical level. While we expect this lag in the deposit pricing to abate, we believe our ability to control deposit costs through this rising rate environment has been greatly enhanced versus prior interest rate cycles.

第四季度我們的計息存款貝塔係數約為 30%。雖然它高於 2022 年的上一時期，但仍低於我們的預期和歷史水平。雖然我們預計存款定價的這種滯後現象會減弱，但我們相信，與之前的利率週期相比，我們在這種利率上升環境中控制存款成本的能力已大大增強。

We remain committed to funding asset growth through relationship-based deposits and our specialty verticals. On Slide 18, we demonstrate our credit trends. Annualized net charge-offs remained low at 9 basis points in the fourth quarter compared to 2 basis points in the linked quarter.

我們仍然致力於通過基於關係的存款和我們的專業垂直領域為資產增長提供資金。在幻燈片 18 上，我們展示了我們的信用趨勢。與相關季度的 2 個基點相比，第四季度年化淨沖銷保持在 9 個基點的低位。

For the full year, net charge-offs were $3.9 million or 4 basis points compared with $11.6 million or 14 basis points in the prior year. Overall, asset quality improved in the quarter with nonperforming assets and nonperforming loans declining in dollar and percentage terms, from both the linked quarter and the prior year-end.

全年淨註銷額為 390 萬美元或 4 個基點，而上年為 1160 萬美元或 14 個基點。總體而言，本季度資產質量有所改善，不良資產和不良貸款以美元和百分比計算均較上一季度和上年末有所下降。

Nonperforming assets were 8 basis points of total assets and nonperforming loans were 10 basis points of total loans. In addition to the improvement in the nonperforming category, we also experienced a decline in past due loans in the quarter.

不良資產佔總資產的8個基點，不良貸款佔總貸款的10個基點。除了不良類別的改善外，本季度我們還經歷了逾期貸款的下降。

On Slide 19, we demonstrate the allowance for credit losses. The allowance for credit losses declined $3.6 million in the quarter to $137 million, primarily due to net charge-offs and the overall improvement in asset quality. While the economic forecast factors used in our CECL model generally worsened in the fourth quarter, the loan portfolio mix shifted to areas that carry a lower reserve.

在幻燈片 19 中，我們展示了信用損失準備金。本季度信貸損失準備金減少 360 萬美元至 1.37 億美元，這主要是由於淨沖銷和資產質量的整體改善。雖然我們的 CECL 模型中使用的經濟預測因素在第四季度普遍惡化，但貸款組合轉向了準備金較低的地區。

A provision expense of $2.1 million was recognized in the quarter, which primarily reflects an increase in the reserve for unfunded commitments. The allowance for credit losses represents 1.41% of total loans compared to 1.5% at the end of the third quarter. When adjusting for government guaranteed loans, the allowance to total loans was at 1.56% at the end of December.

本季度確認了 210 萬美元的撥備費用，這主要反映了無資金承諾準備金的增加。信貸損失準備金佔貸款總額的 1.41%，而第三季度末為 1.5%。調整政府擔保貸款後，12 月底撥備佔貸款總額的比例為 1.56%。

Turning to Slide 20. Our fourth quarter fee income was $17 million, an increase of $7 million in the quarter. The increase was led primarily by a $6 million increase in tax credit income. As you recall, this line item was negatively impacted in the third quarter by rising interest rates on tax credit projects carried at fair value while fourth quarter results did not see the same negative impact as rates were steady in the quarter and benefited from seasonally strong sales of tax credits.

轉到幻燈片 20。我們第四季度的費用收入為 1700 萬美元，比本季度增加了 700 萬美元。增加的主要原因是稅收抵免收入增加了 600 萬美元。正如您所記得的那樣，該項目在第三季度受到以公允價值計價的稅收抵免項目利率上升的負面影響，而第四季度結果沒有看到同樣的負面影響，因為本季度利率穩定並受益於季節性強勁的銷售的稅收抵免。

Tax credit income will continue to be seasonal and subject to further interest rate movements. However, fair value adjustments that reduced tax credit income are more than offset by higher net interest income in a rising interest rate environment.

稅收抵免收入將繼續具有季節性，並受利率進一步變動的影響。然而，在利率上升的環境下，減少稅收抵免收入的公允價值調整被更高的淨利息收入所抵消。

The fourth quarter also saw fees earned on community development investments compared to the linked quarter increase, and they were partially offset by a decrease in deposit service charges driven primarily by an increase in earnings credits to clients based on recent interest rate trends.

與相關季度相比，第四季度社區發展投資所賺取的費用也有所增加，但部分被存款服務費用的減少所抵消，這主要是由於根據最近的利率趨勢增加了對客戶的收益信貸。

Turning to Slide 20. Fourth quarter noninterest expense was $77 million, an increase of $8 million compared to $69 million in the third quarter. Deposit service expenses were the main driver and increased $6 million from the linked quarter due to rising interest rates and growth in certain specialized deposit businesses.

轉到幻燈片 20。第四季度非利息支出為 7700 萬美元，與第三季度的 6900 萬美元相比增加了 800 萬美元。由於利率上升和某些專業存款業務的增長，存款服務費用是主要驅動因素，較上一季度增加 600 萬美元。

Compensation and benefits increased $1.2 million from the linked quarter, principally from higher performance-based incentive and bonus accruals due to the company's strong financial results. The fourth quarter's core efficiency ratio was 48.1%, an improvement of 170 basis points compared to the third quarter. This reflects the continued momentum in operating revenue, outpacing the rise in noninterest expense during the quarter.

薪酬和福利較上一季度增加 120 萬美元，這主要是由於公司強勁的財務業績導致更高的績效激勵和應計獎金。第四季度核心效率比為48.1%，較第三季度提高170個基點。這反映了營業收入的持續增長勢頭，超過了本季度非利息支出的增長。

Looking to 2023, we're expecting the core efficiency ratio to be in the 50% to 51% range as we expect to see margin expand further from our fourth quarter levels. First quarter trends typically include an expected seasonal decline in fee income as well as higher compensation expense. Overall, for 2023, we expect salaries and benefits to increase around 6% and from the fourth quarter annualized run rate.

展望 2023 年，我們預計核心效率比將在 50% 至 51% 的範圍內，因為我們預計利潤率將從第四季度的水平進一步擴大。第一季度的趨勢通常包括費用收入的預期季節性下降以及更高的補償費用。總體而言，我們預計 2023 年的工資和福利將從第四季度的年化運行率增長 6% 左右。

The next big driver of expense is from increased deposit service expense from both rate and growth in certain specialized deposit businesses. We view this space as competitive and evolving and there may be some opportunity for us to manage throughout the year, but not necessarily in the next couple of quarters.

費用的下一個主要驅動因素是存款服務費用因某些專業存款業務的利率和增長而增加。我們認為這個空間具有競爭力和不斷發展，我們可能有一些機會全年管理，但不一定在接下來的幾個季度。

Our efficiency ratio guide reflects our posture on how we expect this line item to trend in 2023. Our capital metrics are shown on Slide 22 and the record earnings we generated in the fourth quarter of $60 million combined with an improvement in accumulated other comprehensive income, resulted in tangible book value per share of $28.67, an increase of 8% from the third quarter.

我們的效率比率指南反映了我們對這一行項目在 2023 年的趨勢預期的態度。我們的資本指標顯示在幻燈片 22 中，我們在第四季度產生的創紀錄收益為 6000 萬美元，加上其他累計綜合收益的改善，每股有形賬面價值為 28.67 美元，比第三季度增長 8%。

During 2022, we still increased tangible book value per share by roughly $0.40 with our strong earnings level while returning $67 million to common shareholders through dividends and share repurchases. We announced another increase to our dividend for the first quarter of 2003, marking the seventh consecutive quarter of the dividend has been increased.

在 2022 年期間，憑藉強勁的盈利水平，我們仍將每股有形賬面價值增加了約 0.40 美元，同時通過股息和股票回購向普通股股東返還了 6700 萬美元。我們宣布再次增加 2003 年第一季度的股息，這標誌著股息已經連續第七個季度增加。

In 2022, we paid common dividends of $0.90 per share a $0.15 increase or 20% compared to the prior year. While our dividend has increased, our dividend payout ratio of 17% in 2022 remains at a level that provides flexibility in our capital structure moving forward.

2022 年，我們支付了每股 0.90 美元的普通股息，與上一年相比增加了 0.15 美元或 20%。雖然我們的股息有所增加，但我們 2022 年 17% 的股息支付率仍處於為我們未來的資本結構提供靈活性的水平。

The tangible common equity to tangible asset ratio improved to 8.4% at the end of the year. After the initial decline in the first quarter, when market interest rates increased and negatively impacted accumulated other comprehensive income, the tangible common equity ratio has improved in each of the last 3 quarters.

年末有形普通股與有形資產比率提高至 8.4%。在第一季度最初下降之後，當市場利率上升並對累計其他綜合收益產生負面影響時，有形普通股權益比率在過去三個季度中的每一個季度都有所改善。

While the tangible common equity ratio is now within our target range of 8% to 9%, we do not plan to execute any meaningful share repurchases in the near term. With the uncertainty on the path of interest rates, and the potential economic impact of further short-term rate increases, we intend to let our organic earnings further strengthen our capital base.

雖然有形普通股權益比率目前在我們 8% 至 9% 的目標範圍內，但我們不打算在短期內執行任何有意義的股票回購。由於利率路徑的不確定性，以及進一步短期利率上升的潛在經濟影響，我們打算讓我們的有機收益進一步加強我們的資本基礎。

When market conditions and our capital position align, we still have 2 million shares available under our Board-approved purchase program. We had great momentum throughout the year and finished 2022 with a strong quarter. We delivered a 23% return on tangible common equity and a 1.8% return on average assets in the fourth quarter with a 19% return on average tangible common equity and a 1.5% return on average assets for the full year 2022.

當市場條件和我們的資本狀況相符時，根據董事會批准的購買計劃，我們仍有 200 萬股可用。我們全年勢頭強勁，並以強勁的季度結束了 2022 年。我們在第四季度實現了 23% 的有形普通股回報率和 1.8% 的平均資產回報率，2022 年全年的平均有形普通股回報率為 19% 和 1.5% 的平均資產回報率。

We believe that we are well positioned and look forward to carrying this momentum in 2023. Thank you for joining the call today, and we'll now open the line for analyst questions.

我們相信我們已做好準備，並期待在 2023 年保持這一勢頭。感謝您今天加入電話會議，我們現在將開通分析師提問熱線。

(Operator Instructions) Your first question come from the line of Jeff Rulis from BA Davidson.

（操作員說明）您的第一個問題來自 BA Davidson 的 Jeff Rulis。

Yes, I just wanted to kind of get a sense for the variable deposit costs. Keene, we got your kind of high-end guardrails on efficiency and expectations on margin and how that all flows through. But just wanted to narrow in on the variable deposit costs. Is that sort of a onetime catch? Is that seasonal in nature? I know you had referenced kind of rate driven but is there anything kind of year-end? Just trying to predict that line a little bit better and how that -- from a run rate perspective?

是的，我只是想了解一下可變存款成本。基恩，我們得到了關於效率和利潤率預期的高端護欄，以及所有這些是如何流動的。但只是想縮小可變存款成本的範圍。那是一次性的嗎？那是季節性的嗎？我知道你提到過某種利率驅動，但有什麼年末嗎？只是試圖更好地預測那條線，以及如何——從運行率的角度來看？

Sure, Jeff. I'm happy to give you some color there. So there was a little bit of catch-up that was in there from year-end and it really related to a competitive decision we made in the fourth quarter.

當然，傑夫。我很樂意在那裡給你一些顏色。所以從年底開始有一些追趕，這確實與我們在第四季度做出的競爭決定有關。

Obviously, everybody is fighting for liquidity now. And I think the specialized deposit space is one where we're seeing some of the key players there. They've had some major deposit outflows and really trying to get aggressive. So we're just holding our ground there. I think we had a good quarter in terms of balances, and we were responsive to some competitive pressures that had a little bit of an effect on some of what was earned throughout the year, and there was some catch-up.

顯然，現在每個人都在為流動性而戰。而且我認為專門的存款空間是我們在那裡看到一些主要參與者的地方。他們有一些主要的存款外流，並且真的試圖變得激進。所以我們只是堅守陣地。我認為我們在平衡方面有一個很好的季度，我們對一些競爭壓力做出了反應，這些壓力對全年的一些收入產生了一點影響，並且有一些追趕。

I would say going forward, when you look at 4Q to 1Q sequentially, we're thinking that, that line item is up maybe $2 million to $3 million, just depending on what happens with balances and rates and sort of everything that we know at the end of the year. So maybe based on December run rate itself, it's probably $2 million.

我想說的是，展望未來，當您按順序查看 4Q 至 1Q 時，我們認為該訂單項可能增加 200 萬至 300 萬美元，這取決於餘額和利率以及我們所知道的一切情況年末。所以也許根據 12 月的運行率本身，它可能是 200 萬美元。

And then based on growth and maybe some more leakage from a competition perspective, that increases up to $3 million sequentially. And then I think if you layer that in with our efficiency ratio guide, I think you can kind of see how we think that plays out for 2023.

然後基於增長以及從競爭角度來看可能更多的洩漏，這將連續增加到 300 萬美元。然後我認為，如果您將其與我們的效率比指南結合起來，我想您可以看到我們對 2023 年的看法。

Okay. If I catch that right, you're referencing the variable deposit cost line item specifically, and that's in addition to the...

好的。如果我沒聽錯，你就是在具體引用可變存款成本項目，這是除了......

Yes,yes.

是的是的。

And then we got your salaries and comp in Q1 commentary as well. So it looks like an up in Q1, but again, kind of use that efficiency ratio to back in for the full year?

然後我們也在第一季度的評論中得到了你的薪水和薪酬。所以它看起來像是在第一季度有所上升，但是再次使用那個效率比率來支持全年？

Yes. I think Q1 obviously won't compare to the 48% efficiency with the seasonal fee income and a little bit shorter day count from a net interest income perspective, and you have some seasonal expenses there. But I think with that $2 million to $3 million for the first quarter sequentially on that, tax credit line -- or sorry, the ECR line item, that should give you some good starting points for modeling the expenses for 1Q.

是的。我認為第一季度顯然無法與季節性費用收入的 48% 效率相比，從淨利息收入的角度來看，天數稍微短一些，而且那裡有一些季節性費用。但我認為，第一季度連續 200 萬至 300 萬美元的稅收抵免額度——或者抱歉，ECR 行項目，應該為第一季度的費用建模提供一些良好的起點。

Okay. I wanted to jump over to the margin? I think you referenced putting on some swaps in the quarter, I can't remember if that's the first we've heard of that. I mean just trying to get a sense for have you been putting those on in quarters prior and/or just trying to get the strategy of -- are you trying to be more aggressive in moderating or locking in, again, margin to the downside, should we flip on rates?

好的。我想跳到邊緣？我想你提到了在本季度進行一些互換，我不記得那是不是我們第一次聽說。我的意思是只是想弄清楚你是否在之前的幾個季度中採用了這些策略和/或只是試圖獲得策略 - 你是否試圖更積極地緩和或鎖定，再次，保證金下降，我們應該提高利率嗎？

Just trying to sense for the appetite of could we see more? And how far do you go? Obviously, clearly benefiting on the asset sensitivity front, but I want to see what the other side and what you plan to do into '23?

只是想感受一下我們能不能看到更多的胃口？你要走多遠？顯然，顯然在資產敏感性方面受益，但我想看看另一方面，你打算在 23 年做什麼？

Yes, Jeff, I think -- so certainly, we were -- we've been focused in '23 on various strategies to essentially take some asset sensitivity off the balance sheet. Initially, I think that was cash into securities. And I think just moving the loan to deposit up in and of itself did that to a degree with soaking up some of that excess liquidity and letting some of that go.

是的，傑夫，我認為——當然，我們是——我們在 23 年一直專注於各種策略，以從根本上消除資產負債表上的一些資產敏感性。最初，我認為那是將現金換成證券。而且我認為，僅僅將貸款轉移到存款本身就在一定程度上做到了這一點，吸收了一些過剩的流動性並讓其中的一些流走了。

And then once rates were up, what we would say is meaningfully, call that late second quarter, early third, we started looking at a hedging strategy to take somewhere between 50 and 100 basis points of asset sensitivity to the downside off the table. I'd say we're about halfway there. We've done a couple of hundred million so far, and we might have $200 million to $300 million to go. We're not getting -- we're not going to be incredibly aggressive. We would have liked to be maybe a little bit more assertive earlier on putting the hedges on, but quite frankly, the loan hedges move the same direction as the fair value of securities in comprehensive income.

然後一旦利率上升，我們會說是有意義的，稱之為第二季度末，第三季度初，我們開始研究一種對沖策略，將資產對下行的敏感性降低 50 到 100 個基點。我會說我們已經完成了一半。到目前為止，我們已經完成了數億美元，而且我們可能還有 2 億到 3 億美元需要投入。我們不會 - 我們不會變得非常激進。我們本來希望在對沖上更早一點自信，但坦率地說，貸款對沖與綜合收益中證券的公允價值走向相同。

And so that was a guardrail that caused us to be a little bit more cautious. So now with TCE in a little bit better spot, we're layering some of those in. And with the way the rate curve is, those are probably shorter-term hedges, but we're not going to take 3% sensitivity off the table. We're probably going to take the better part of 100 basis points, and we'll probably end up sitting there. So that's the way we're thinking about it. And then all of our net interest income and margin guidance is reflective of that, that we provided on my comments earlier.

因此，這是一道護欄，讓我們更加謹慎。因此，現在隨著 TCE 處於更好的位置，我們將其中一些分層。根據利率曲線的方式，這些可能是短期對沖，但我們不會降低 3% 的敏感性桌子。我們可能會採取 100 個基點中的大部分，我們可能最終會坐在那裡。這就是我們考慮的方式。然後我們所有的淨利息收入和保證金指導都反映了我們之前在評論中提供的內容。

Your next question comes from the line of Damon DelMonte from KBW.

您的下一個問題來自 KBW 的 Damon DelMonte。

So first, I want to kind of continue on the margin commentary there. So Keene, do you think you guys kind of peak here in the first quarter for your margin? And then kind of are able to defend it and hold it as you progress through '23? Or do you think you still see a rise as far as the second quarter of this year?

所以首先，我想繼續那裡的保證金評論。那麼基恩，你認為你們在第一季度的利潤率達到頂峰嗎？然後有點能夠捍衛它並在你通過'23進步時保持它？還是您認為到今年第二季度您仍會看到增長？

Yes. I think based on my comments, I think that seemed to reflect more defensive with first quarter peak, I think, when you really look out at how we forecasted it. I think that margin on a monthly basis peak sometime in the third quarter, but I'm not saying that, that would actually result in third quarter margin being higher than second.

是的。我認為，根據我的評論，我認為這似乎反映了第一季度高峰期更具防禦性，我認為，當你真正了解我們的預測方式時。我認為月度利潤率在第三季度的某個時候達到峰值，但我並不是說，這實際上會導致第三季度的利潤率高於第二季度。

And again, that's all dependent on what -- when we get the 7 basis points of Fed funds increases " that we're expecting to get, if that's all layered into the first quarter, then obviously, second quarter is probably more like the peak. But if that's a little bit more drawn out, I think maybe the peak is lower, but maybe it's later. So we're thinking about it, call it, June, July time frame in terms of peak and probably first to second quarter is when you get what you guys will see as peak margin.

再說一遍，這完全取決於——當我們得到聯邦基金增加 7 個基點時，我們期望得到的結果，如果這一切都在第一季度進行，那麼顯然，第二季度可能更像是高峰期.但如果時間稍微延長一點，我認為峰值可能會更低，但可能會更晚。所以我們正在考慮，就峰值而言，稱它為 6 月、7 月的時間框架，可能是第一季度到第二季度是當你得到你們將看到的最高利潤時。

Got it. Okay. That's helpful. And with regards to the outlook for loan growth, can you just provide a little color on what the expectation would be for next year. the commentary seemed pretty positive. Do you think you could kind of replicate the level you had in '22? Or do you think we start to see a bit of a pullback?

知道了。好的。這很有幫助。關於貸款增長的前景，您能否簡單介紹一下明年的預期。評論似乎很積極。你認為你可以復制你在 22 年的水平嗎？還是您認為我們開始看到一些回調？

Yes, Damon, this is Jim. I'll handle that. We're very comfortable in the mid- to high single-digit number with everybody contributing we talked about the fact that we don't want to jump into transactional lending or do the last project in any market. Just keep to the game plan, then we're going to have quarters like we had in the fourth quarter when it all comes together, but we're comfortable that mid- to high single-digit growth going forward.

是的，達蒙，這是吉姆。我會處理的。我們對中高個位數感到非常滿意，每個人都做出了貢獻，我們談到了一個事實，即我們不想跳入交易貸款或在任何市場上做最後一個項目。只要堅持遊戲計劃，然後我們就會有像第四季度那樣的季度，但我們對未來的中高個位數增長感到滿意。

Great. And then do you guys -- do you do much in the office space in your commercial real estate portfolio?

偉大的。然後你們 - 你們在商業房地產投資組合中的辦公空間做了很多嗎？

Scott, do you want to talk about that?

斯科特，你想談談這個嗎？

Yes. Damon, it's I wouldn't say it's a focus. It's a function of those relationships that I talk about in each of our markets. But it's not a large focus or a concentration for us. And I think the portfolio we do have it seems to be performing well. Generally, it's like neighborhood type offices. We don't have a large metro Class A type portfolio.

是的。達蒙，我不會說這是一個焦點。這是我在我們每個市場中談論的那些關係的功能。但這對我們來說不是一個大的焦點或集中。而且我認為我們擁有的投資組合似乎表現良好。一般來說，它就像鄰里式辦公室。我們沒有大型地鐵 A 類產品組合。

Got it. And are you able to quantify the percentage of overall loans or of the CRE portfolio?

知道了。您能否量化總體貸款或 CRE 投資組合的百分比？

Yes. Yes...

是的。是的...

Yes, It's roughly $450 million to $500 million kind of sitting here today. So pretty diversified in terms of industry as well. So relatively small in terms of the whole.

是的，今天坐在這里大約有 4.5 億到 5 億美元。在行業方面也非常多樣化。所以對整體而言比較小。

Maybe I'll just add too. We had done a targeted review on that portfolio not too long ago. And we're talking about LTVs averaging in 50% range. Debt service coverage is above 150%, so also performing pretty well.

也許我也會補充一下。不久前，我們對該投資組合進行了有針對性的審查。我們談論的 LTV 平均在 50% 範圍內。償債覆蓋率超過 150%，因此表現也相當不錯。

Your next question comes from the line of Brian Martin from Janney Montgomery.

你的下一個問題來自 Janney Montgomery 的 Brian Martin。

I just wanted to find out, just get a little bit more insight on just you talked a little bit, Keene, about the tax credit business and kind of the rebound and the seasonality at one point and maybe there's some seasonality going away and then last quarter, the issue. But just in general, that kind of tax credit or fee income, just kind of some guidelines as far as how to think about how you guys are thinking about that this quarter. Obviously, the CDE this quarter was a little bit of inflator, but just any input or thoughts you have on the fee income would be helpful.

基恩，我只是想知道，只是想更深入地了解你剛才談到的稅收抵免業務以及某種反彈和季節性，也許有些季節性會消失然後持續季度，問題。但總的來說，那種稅收抵免或費用收入，只是關於如何思考你們本季度如何思考的一些指導方針。顯然，本季度的 CDE 有點誇張，但您對費用收入的任何投入或想法都會有所幫助。

Yes. I mean I think year-to-date, Brian, I think for this year, we're at, call it, $2.5 million for tax credit income in total. And I think that without any material movement in what we'll say, are longer-term rates, I think we look at -- that as probably a similar level for the upcoming year.

是的。我的意思是，我認為今年迄今為止，布賴恩，我認為今年，我們的稅收抵免收入總額為 250 萬美元。而且我認為，如果我們所說的沒有任何實質性變化，我認為我們會看到長期利率——這可能與來年的水平相似。

If 10-year SOFR moves further down, I think there's opportunity for more fair value and vice versa. So we're kind of teetering at that point. And I think there are some cash sales that we do expect will offset some of the start-up and operating costs of that business for us. And then you asked about the kind of other income CDE private equity. I think we generally think about that annually as, call it, $2 million to $3 million that we feel comfortable. And then there's upside in some of those depending on how some of those projects ultimately work out and are exited.

如果 10 年期 SOFR 進一步下降，我認為有更多公允價值的機會，反之亦然。所以我們在這一點上有點搖搖欲墜。而且我認為我們確實期望有一些現金銷售會為我們抵消該業務的一些啟動和運營成本。然後你問了那種其他收入的CDE私募股權。我認為我們通常每年將其視為我們認為合適的 200 萬至 300 萬美元。然後，其中一些有上行空間，這取決於其中一些項目最終如何運作並退出。

So that -- both of those businesses, I think, are seasonal. And we probably think that their second half weighted with obviously the tax credit business is fourth quarter weighted for us. So Hopefully, that gives you some perspective on where we think it is and what those, we'll call variable line items look like in '23.

所以——我認為這兩項業務都是季節性的。我們可能認為他們的下半年顯然對稅收抵免業務加權，對我們來說是第四季度加權。因此，希望這能讓您對我們認為它在哪里以及那些我們稱之為可變訂單項在 23 年的樣子有一些看法。

Yes. And just if you take out the tax credit line, Keene, of volatility, this fee income kind of in that when you look at all the line items, maybe kind of a mid-single-digit type of grower. Is that how you're thinking about it if you strip out the -- at least one item which had a lot -- had more noise in it last year. Or is that a -- on the low end where it was reasonable?

是的。如果你去掉稅收抵免額度，Keene，波動性，當你查看所有的項目時，這種費用收入可能是一種中個位數類型的種植者。如果你去掉 - 至少一個有很多的項目 - 去年有更多的噪音，你是這樣想的嗎？或者這是一個 - 在合理的低端？

Yes, if you're looking at third and fourth quarter, call it, recurring fee income, I think we think of those as kind of mid-single-digit businesses together overall. And I think there's maybe a little bit of pressure in competition in their traditional earnings credit space in some of our cash management and treasury management products, but we're working to mitigate that. So we sort of think between card wealth deposit service charges that 5% from where we're operating in the second half of the year gets you in the ballpark.

是的，如果你正在看第三和第四季度，稱之為經常性費用收入，我認為我們將這些視為總體上的中個位數業務。而且我認為在我們的一些現金管理和資金管理產品中，他們傳統的收益信用空間可能存在競爭壓力，但我們正在努力減輕這種壓力。因此，我們在某種程度上認為，在卡財富存款服務收費之間，從我們今年下半年運營的地方收取 5% 的費用可以讓您進入球場。

Yes. Okay. That's perfect. That's what I thought. And then just on the capital, kind of getting back here. As far as the buyback and potential M&A, I guess, the organic growth sounds like it's there. I guess when you look at the other options, how are you guys thinking about the buyback today in the M&A.? I mean you talked about the dividend already. So just any feedback on how to think about those or how you're thinking about those going into '23?

是的。好的。那很完美。我也這麼想。然後就在首都，有點回到這裡。至於回購和潛在的併購，我想，有機增長聽起來就在那裡。我想當您查看其他選項時，你們如何看待今天在併購中的回購？我的意思是你已經談到了股息。那麼關於如何考慮這些問題或您如何考慮進入 23 年的那些問題的任何反饋？

Can you want to handle the buyback and I'll handle M&A?

你想處理回購，我來處理併購嗎？

Yes, sounds good, Jim. I would say, Brian, that we're trying to be thoughtful here about all the volatility that we've been through that investors have been through. And I think the idea is to create a really, really strong balance sheet. We already have it. The earnings power and the dividend profile give us the ability to do that. I think the allowance is maybe a little bit lighter than we would want it to be if there is a recession coming, but asset quality is so good that, that's a struggle.

是的，聽起來不錯，吉姆。布賴恩，我想說的是，我們正在努力思考我們所經歷的投資者所經歷的所有波動。我認為這個想法是創造一個非常非常強大的資產負債表。我們已經有了。盈利能力和股息狀況使我們有能力做到這一點。我認為，如果經濟衰退即將到來，津貼可能會比我們希望的要少一些，但資產質量非常好，這是一場鬥爭。

So I think the next line of defense is, besides earnings and the allowance of capital -- and I think our goal would be in the near term to just to let that build and be a little bit conservative. And if we're operating with a little bit too much capital, I think that as we'll say, the environment improves and valuations improve. We are clearly a strong acquirer and we can deal with excess capital in a deal structure or something like that? And then, Jim, if you want to talk about our appetite for M&A, that's now is probably the perfect time.

因此，我認為除了收益和資本津貼之外，下一道防線是——我認為我們的目標是在短期內只是讓它建立起來並且有點保守。如果我們運營的資本有點多，我認為正如我們所說的那樣，環境會改善，估值也會提高。我們顯然是一個強大的收購方，我們可以通過交易結構或類似的方式處理過剩資本？然後，吉姆，如果你想談談我們對併購的興趣，現在可能是最佳時機。

Brian, it's one of those things we've got such great momentum in the business. And M&A is on the list -- it's further down the list in 2023 than say it was in '19 and '20. We still do our normal calling and meetings and things of that nature, but it's going to be pretty dynamic and pretty special to stop what we're doing now to put something on top. But we've talked about this in the past, M&A also includes lift-outs. M&A also includes teams and new businesses, and that's always an ongoing opportunity for us.

布賴恩，這是我們在業務中取得如此巨大發展勢頭的事情之一。併購也在名單上——它在 2023 年的排名比 19 年和 20 年的排名更靠後。我們仍然進行正常的通話和會議以及類似性質的事情，但是停止我們現在正在做的事情以將某些事情放在首位將是非常動態和非常特別的。但是我們過去已經談過這個，併購也包括剝離。併購還包括團隊和新業務，這對我們來說始終是一個持續的機會。

Got you. Okay. That's helpful. And maybe just on the deposit beta, I guess any change as far as where you think the cumulative beta kind of shakes out here given -- and I think it sounds like your outlook is for a couple more rate hikes here in February and March, but I'm not sure if that's -- if those play out, how are you guys thinking about that deposit beta cumulatively?

明白了好的。這很有幫助。也許只是在存款貝塔上，我猜任何變化，只要你認為這裡的累積貝塔有點動搖——我認為這聽起來像是你的前景是在 2 月和 3 月這裡再加息幾次，但我不確定那是否 - 如果這些發揮作用，你們如何累積地考慮存款貝塔？

Yes. So I've got. I'm looking at it here in front of me, and honestly, the cumulative beta has obviously been increasing, but it's not dramatic. Deposit pricing, particularly in interest-bearing accounts have behaved extremely well. And even in December, the beta is cumulatively under 25%. And even, we made some pricing adjustments late in the year and even the monthly beta is 50% and under.

是的。所以我有。我在眼前看著它，老實說，累積貝塔值顯然在增加，但並不顯著。存款定價，尤其是計息賬戶的定價表現得非常好。即使在 12 月，貝塔係數累計也低於 25%。甚至，我們在今年晚些時候進行了一些定價調整，甚至每月的貝塔係數也低於 50%。

And if you look at it for the quarter, it's kind of 30% and under. So I think we feel good about the stability of the deposit base and where the current rates are and what we've done to be responsive to it. And I think we generally feel good about how we can generate enough funding to fund high single digit, call it, 8% organic loan growth in 2023 with contribution from commercial specialty and then business and consumer banking.

如果你看一下這個季度，它大約是 30% 或以下。因此，我認為我們對存款基礎的穩定性、當前利率的位置以及我們為應對它所做的工作感到滿意。而且我認為我們總體上對我們如何能夠產生足夠的資金來資助高個位數的資金感到滿意，稱之為 2023 年 8% 的有機貸款增長，其中包括商業專業、商業和消費者銀行業務的貢獻。

So we're cautious about it from a lag perspective. I think all the guidance we give has some caution above where it's currently performing. So if we're at high 20s cumulatively or mid-20s cumulatively, we think of marginal beta moving forward is 40%. But the reality is we haven't -- we've had that view since the third quarter, and we haven't seen it.

所以我們從滯後的角度對此持謹慎態度。我認為我們給出的所有指導在目前的表現之上都有一些謹慎。因此，如果我們累計處於 20 多歲或 20 多歲中期，我們認為邊際貝塔向前移動是 40%。但現實是我們還沒有——自第三季度以來我們就有了這種看法，但我們還沒有看到。

So I think we feel like we've got a really good sense of what the account types are used for where we need to be responsive and where we just have good, stable core funding that really doesn't have to move from a rate perspective.

所以我認為我們覺得我們已經非常了解賬戶類型用於我們需要響應的地方以及我們擁有良好、穩定的核心資金的地方，而這些資金實際上不需要從利率的角度來看.

Got you. No, that makes sense. And maybe just last one for me was on the -- just the funding of the loan growth this year, given -- I mean, the liquidity levels has obviously come to way down. So is it fair to just think about the balance sheet or just the funding loan growth is coming from the deposit growth this year? Is that how you're looking at a little bit more liquidity to come down, but that's how...

明白了不，這是有道理的。也許對我來說最後一個是 - 只是今年貸款增長的資金，鑑於 - 我的意思是，流動性水平顯然已經下降。那麼今年只考慮資產負債表或只考慮存款增長帶來的融資貸款增長是否公平？這就是你如何看待更多的流動性下降的方式，但這就是......

Yes, Brian, we're thinking about -- we'll fund it through everything can just mentioned all the various units and teams and specialties that we have. We feel confident that we can do that.

是的，布賴恩，我們正在考慮——我們將通過我們擁有的所有不同部門、團隊和專業的一切來資助它。我們相信我們可以做到這一點。

Your next question comes from the line of Michael Hultquist from Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Michael Hultquist。

Just wanted to follow up on the last question. Can you give us some color surrounding kind of the leftover runoff of potential rate-sensitive deposits on the balance sheet right now?

只是想跟進最後一個問題。你能給我們一些關於資產負債表上潛在利率敏感存款剩餘徑流的顏色嗎？

Scott, do you want to talk about that?

斯科特，你想談談這個嗎？

Yes. It's kind of what I've said in the comments, James. A majority of the decline is really a handful of larger commercial clients that are redeploying excess funds and into nonbank alternatives, T-bills, maybe what I'll call competitive specials. We see that in certain markets. But I feel really good about how we are having conversations with our clients. We know that handful of clients.

是的。詹姆斯，這就是我在評論中所說的。大部分下降實際上是少數較大的商業客戶正在重新部署過剩資金並投入非銀行替代品、國庫券，也許我會稱之為有競爭力的特價商品。我們在某些市場看到了這一點。但我對我們與客戶的對話方式感到非常滿意。我們知道少數客戶。

We've also developed some products that we can use, and we're proactively approaching with clients that we know have those excess funds, and we've been able to really moderate that. We're also having really good conversations with other deposit prospects in the market as well. And I feel good about our pipeline of being able to bring in new deposits. And I think the results that I talked about in the quarter show that we've been successful there as well. So hopefully, that helps.

我們還開發了一些我們可以使用的產品，我們正在主動與我們知道有多餘資金的客戶接洽，我們已經能夠真正緩和這些資金。我們也與市場上的其他存款前景進行了非常好的對話。我對我們能夠引入新存款的渠道感到滿意。我認為我在本季度談到的結果表明我們在這方面也取得了成功。希望這會有所幫助。

Yes. That's super helpful. And then my follow-up question, you kind of just touched on with the outlook growth, but do you think it's reasonable to repeat specialty deposit growth this year compared to last year at that same pace?

是的。這非常有幫助。然後是我的後續問題，你剛剛談到了前景增長，但你認為今年與去年相比以同樣的速度重複專業存款增長是否合理？

Yes. We think this. We think that those businesses for us are consistent providers. We've added some new sales people there. So we feel good about its ability to contribute appropriately for the total funding growth for our company.

是的。我們這樣認為。我們認為這些企業對我們來說是始終如一的供應商。我們在那裡增加了一些新的銷售人員。因此，我們對它為我們公司的總資金增長做出適當貢獻的能力感到滿意。

Next question comes from Jeff Rulis from BA. Davidson.

下一個問題來自 BA 的 Jeff Rulis。戴維森。

Just a follow-up. The nonaccrual decline. Any color on the loans that were either back on nonaccrual or paid off, just looking for some detail there.

只是一個跟進。非應計下降。非應計貸款或還清貸款的任何顏色，只是在那裡尋找一些細節。

Jeff, it's Scott. I can take that one. It's really -- the majority was in 2 credits, not new. They've kind of been in our workout process most of the year or maybe even in the prior year, but really successful conclusions to both.

傑夫，是斯科特。我可以拿那個。真的——大部分是 2 個學分，不是新的。他們在一年中的大部分時間甚至可能在前一年都參與了我們的鍛煉過程，但兩者都取得了真正成功的結論。

One was an ag credit that we completed a charge-off and work out on and then a C&I credit that we actually had a recovery on as well. So that's probably the bulk of the reduction in nonaccruals for the quarter.

一個是我們完成沖銷併計算出來的 ag 信用額度，然後是我們實際上也有恢復的 C&I 信用額度。所以這可能是本季度非應計項目減少的大部分。

Got you. And then Keene, did that reduce the margin at all in that recovery? I mean is that meaningful at all?

明白了然後基恩，這是否降低了復甦的利潤率？我的意思是這有意義嗎？

It was a relatively modest recovery, sorry...

這是一個相對溫和的恢復，抱歉......

Yes. No, the recovery, Jeff went through the allowance. So I think that's what Scott is referring to. So that was part of the net but it didn't meaningfully impact margin. I think margin and net interest income were fairly clean in the quarter. So nothing too consequential either way that you need to think about for 1Q or anything like that.

是的。不，康復，傑夫經歷了津貼。所以我認為這就是斯科特所指的。所以這是淨額的一部分，但它並沒有對利潤率產生有意義的影響。我認為本季度的保證金和淨利息收入相當乾淨。因此，無論哪種方式，您都不需要考慮 1Q 或類似的東西。

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

目前沒有其他問題。我現在將把電話轉回給吉姆作結束語。

Colby, thank you, and thank you all for joining us today and for your interest in our company. We look forward to speaking to all of you again at the end of our first quarter. Take care, and have a great day.

Colby，謝謝你，感謝大家今天加入我們並對我們公司感興趣。我們期待在第一季度末再次與大家交談。保重，祝你有美好的一天。

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

今天的電話會議到此結束。您現在可以斷開託管。