Enterprise Financial Services Corp (EFSC) 2023 Q2 法說會逐字稿

Hello, and welcome to the Enterprise Financial Services Corp Second Quarter 2023 Earnings Call. (Operator Instructions) I will now turn the conference over to Jim Lally, President and CEO. Please go ahead.

您好，歡迎參加 Enterprise Financial Services Corp 2023 年第二季度財報電話會議。 （操作員指示）我現在將會議交給總裁兼首席執行官吉姆·拉利 (Jim Lally)。請繼續。

Thank you, Jay, and good morning. Thank you all very much for joining us this morning, and welcome to our 2023 second quarter earnings call.

謝謝你，傑伊，早上好。非常感謝大家今天早上加入我們，歡迎參加我們的 2023 年第二季度財報電話會議。

Joining me this morning is Keene Turner, EFSC's Chief Financial Officer and Chief Operating Officer; and Scott Goodman, President of Enterprise Bank & Trust.

今天早上加入我的是 EFSC 首席財務官兼首席運營官 Keene Turner；斯科特·古德曼（Scott Goodman），企業銀行與信託公司總裁。

Before we begin, I would like to remind everybody on the call that a copy of the release and accompanying presentation can be found on our website. 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 and our most recent 10-K and 10-Q for reasons why actual results may vary from any forward-looking statements that we make today.

在開始之前，我想提醒通話中的每個人，可以在我們的網站上找到新聞稿和隨附演示文稿的副本。昨天，該演示文稿和收益發布已在 SEC 8-K 表格中提供。請參閱標題為“前瞻性陳述”的演示文稿的幻燈片 2 以及我們最新的 10-K 和 10-Q，了解實際結果可能與我們今天做出的任何前瞻性陳述不同的原因。

In mid-March, we made a strategic decision to continue our growth trajectory for 2023, supporting the needs of our clients in addition to onboarding several new relationships from competitors who are inwardly focused. Much of this growth focused on C&I relationships typically coming with a floating rate loan structure and full treasury management products and deposits. As you can see from our growth in the quarter, this decision paid off well for us.

3 月中旬，我們做出了一項戰略決策，即在 2023 年繼續保持增長軌跡，除了與專注於內部的競爭對手建立一些新關係外，還支持客戶的需求。這種增長大部分集中在商業與工業關係上，通常採用浮動利率貸款結構和全面的資金管理產品和存款。從本季度的增長中可以看出，這一決定為我們帶來了良好的回報。

As part of our efforts to support clients and enhance long-term shareholder and franchise value, we also saw some significant deposit wins in the quarter from our regions and specialty deposit businesses that will fund over the remainder of this year. Scott will provide much more color on these topics in his comments.

作為我們支持客戶和提高長期股東和特許經營價值的努力的一部分，我們在本季度還看到我們的地區和專業存款業務贏得了一些重大存款，這些存款將在今年剩餘時間提供資金。斯科特將在他的評論中提供有關這些主題的更多信息。

I spent the month of June visiting several of our markets and had a chance to visit with over 100 clients and prospects. For the most part, these companies continue to perform well and are optimistic about the remainder of this year and next despite the increased costs throughout their businesses, inclusive of debt service. Orders remain strong. Supply chain issues have improved, labor cost and availability have not worsened and earnings remain good. What they heard from me was that we would be there to support them through this time of opportunity, just like we promised when we brought them on to our platform.

我在 6 月份訪問了我們的幾個市場，並有機會拜訪了 100 多名客戶和潛在客戶。在大多數情況下，這些公司繼續表現良好，並對今年剩餘時間和明年持樂觀態度，儘管整個業務的成本增加，包括償債成本。訂單依然強勁。供應鏈問題有所改善，勞動力成本和可用性並未惡化，盈利依然良好。他們從我那裡聽到的是，我們將在這個機會期間支持他們，就像我們在將他們引入我們的平台時所承諾的那樣。

Despite this relatively optimistic viewpoint, I do see loan growth for us moderating in the second half of this year and settling back into the mid- to high single-digit range for 2024. For Enterprise, this is reflective of the fact that we're seeing payoff activity moderate, which we feel is an opportunity to garner more holistic customer relationships in situations where we are lending. Additionally, with moderating payoffs, we believe this presents an opportunity to continue to apply pricing discipline and focus on elevating our spreads in certain business lines.

儘管存在這種相對樂觀的觀點，但我確實認為我們的貸款增長將在今年下半年放緩，並在2024 年回到中高個位數範圍。對於企業而言，這反映了這樣一個事實：我們正在看到回報活動適度，我們認為這是在我們貸款的情況下獲得更全面的客戶關係的機會。此外，隨著回報的緩和，我們相信這提供了一個繼續應用定價紀律並專注於提高某些業務線的利差的機會。

As some competitors back away from certain sectors, we see this as an opportunity to earn more by doing slightly less. This will drive loan origination and growth into certain business lines naturally like C&I, and may cause some moderation in certain real estate situations as well as other lower-margin business lines. Our financial scorecard can be found on Slides 3 and 4.

隨著一些競爭對手退出某些領域，我們認為這是一個通過稍微少做一點來賺取更多收入的機會。這將自然地推動某些業務線（如工商業）的貸款發放和增長，並可能導致某些房地產情況以及其他利潤率較低的業務線有所放緩。我們的財務記分卡可以在幻燈片 3 和 4 中找到。

Our strong financial performance continued during the second quarter. As expected, most earnings-related measurements declined when compared to the first quarter. Nonetheless, I believe that we continue to operate from a position of strength due to our diversified revenue base and strong balance sheet. For the quarter, we earned net income of $49.1 million or $1.29 per diluted share as we produced an ROAA of 1.44% and a PPNR ROAA of 2.02%. Our focus on growing operating revenue continued in the quarter as net interest income grew by $1.2 million to $140.7 million, supported by a strong net interest margin of 4.49%.

我們在第二季度繼續保持強勁的財務業績。正如預期的那樣，大多數與收益相關的指標與第一季度相比有所下降。儘管如此，我相信，由於我們多元化的收入基礎和強勁的資產負債表，我們將繼續保持優勢地位。本季度，我們的淨利潤為 4910 萬美元，即稀釋後每股收益 1.29 美元，ROAA 為 1.44%，PPNR ROAA 為 2.02%。本季度我們繼續關注營業收入的增長，淨利息收入增長了 120 萬美元，達到 1.407 億美元，這得益於 4.49% 的強勁淨息差。

While remixing of deposits continued during the quarter, we also saw our commercial clients in some instances utilizing cash for asset purchases instead of borrowing are putting much more cash into M&A and real estate projects than what we had traditionally experienced. Entering the quarter, we were confident that we would be able to combat the earnings pressure created by the expected deposit remixing. Loan growth in the quarter was just over $500 million and represented growth from all geographic areas and businesses.

雖然本季度存款的重新混合仍在繼續，但我們還看到，在某些情況下，我們的商業客戶使用現金而不是藉款來購買資產，而在併購和房地產項目中投入的現金比我們傳統上經歷的要多得多。進入本季度，我們有信心能夠應對預期的存款重組帶來的盈利壓力。本季度的貸款增長略高於 5 億美元，代表了所有地理區域和企業的增長。

Our variable rate bias and C&I focus drove overall loan yields to 6.64%, an increase of 31 basis points from the previous quarter. While this growth was ahead of expectations, it helped us weather the pressure from changes to deposit pricing and composition, and we believe that it's helped us set up to have a chance for stable quarterly NII for the remainder of the year.

我們的浮動利率偏好和對商業與工業的關注將整體貸款收益率推至 6.64%，比上一季度增加了 31 個基點。雖然這種增長超出了預期，但它幫助我們應對了存款定價和結構變化帶來的壓力，我們相信，這幫助我們在今年剩餘時間內有機會實現穩定的季度NII。

We utilized brokered CDs to provide stable funding to support the growth in the second quarter. This strategy helped to preserve our wholesale borrowing capacity and liquidity measures, while weathering typical seasonal liquidity tightness in our customer base. This helped us maintain a stable loan-to-deposit ratio of 90% during the quarter, while uninsured deposits declined modestly due to a continued shift in the deposit base.

我們利用經紀CD為第二季度的增長提供穩定的資金支持。這一策略有助於保持我們的批發借貸能力和流動性措施，同時抵禦我們客戶群中典型的季節性流動性緊張。這幫助我們在本季度保持了 90% 的穩定貸存比，而由於存款基礎的持續變化，未保險存款略有下降。

Stable and strong is how I would characterize both our capital and credit ratios. At quarter end, our tangible common equity to total assets came in at 8.65%, and we grew our tangible book value per common share from $30.55 to $31.23. This represents over a 17% increase from where we were just a year ago. Our credit statistics too remain strong as both nonperforming loans to total loans and nonperforming assets to total assets remain low and relatively unchanged when compared to the previous quarter and the second quarter of 2022. Consistent reviews of the portfolios and early identification of potential issues is how we've managed and continue to manage the portfolios. This includes targeted reviews utilizing both internal and external resources and expertise.

我對我們的資本和信貸比率的描述是穩定和強勁。截至季度末，我們的有形普通股佔總資產的比例為 8.65%，每股普通股有形賬面價值從 30.55 美元增至 31.23 美元。這比一年前增長了 17% 以上。我們的信貸統計數據也依然強勁，因為與上一季度和2022 年第二季度相比，不良貸款佔總貸款的比例以及不良資產佔總資產的比例仍然較低且相對不變。對投資組合的一致審查和及早識別潛在問題是如何做到這一點的我們已經並將繼續管理投資組合。這包括利用內部和外部資源和專業知識進行有針對性的審查。

Slide 5 reflects our focus for the foreseeable future. Funding our future loan growth from core client relationships remains our biggest opportunity going forward. We have invested in and grown several markets and businesses that provide us the opportunity to do just that. Our asset growth will moderate back to the mid- to high-single-digit range focus on expanding our credit spreads and continued disciplined credit structures. This will allow us to maintain an incredibly strong balance sheet and continue to produce the best-in-class earnings profile that we all have become accustomed to.

幻燈片 5 反映了我們對可預見的未來的關注重點。通過核心客戶關係為我們未來的貸款增長提供資金仍然是我們未來最大的機會。我們投資並發展了多個市場和業務，這為我們提供了實現這一目標的機會。我們的資產增長將放緩至中高個位數範圍，重點是擴大信用利差和持續嚴格的信用結構。這將使我們能夠保持極其強勁的資產負債表，並繼續產生我們都已經習慣的一流盈利狀況。

With that, I would like to turn the call over to Scott Goodman for much more insight and details on our markets and our businesses. Scott?

因此，我想將電話轉給斯科特·古德曼，以獲取有關我們市場和業務的更多見解和詳細信息。斯科特？

Thank you, Jim, and good morning, everyone.

謝謝吉姆，大家早上好。

Moving on to Slide 6. As you heard from Jim, we posted robust loan growth for the quarter totaling $501 million, adding to a pace which results in a 12-month increase of over 13%. Growth over this time frame is broken out on Slide 7 and has come from all primary categories, well balanced between the metro markets and specialty verticals.

轉到幻燈片 6。正如您從 Jim 那裡聽到的，我們發布了本季度貸款強勁增長的消息，總額達 5.01 億美元，這使得 12 個月的貸款增長超過 13%。幻燈片 7 列出了這段時間內的增長情況，增長來自所有主要類別，在都市市場和專業垂直市場之間取得了很好的平衡。

Accelerated growth in Q2 detailed on Slide 8 was primarily the result of strong pull-through of opportunities from the pipeline with originations up 13% from the prior quarter. In addition, net growth was aided by reduced payoff activity and a modest increase in usage on revolving lines of credit.

第 8 張幻燈片詳細介紹了第二季度的加速增長，這主要是由於管道中的機會強勁拉動的結果，起始數量比上一季度增長了 13%。此外，淨增長得益於還款活動的減少和循環信貸額度使用量的適度增加。

Within the specialty channels, sponsor finance experienced strong growth this quarter, through both higher originations and lower churn in the portfolio. Following a brief pause earlier in the year to digest the impacts of rising rates and some shifting economic factors, sponsors restarted their process during the quarter, with closings in Q2 double that of Q1 levels. We remain disciplined in this channel, underwriting to proven and consistent credit structures, focusing on well-known sponsor relationships and opportunistically elevating spreads to boost our return.

在專業渠道中，贊助商融資在本季度經歷了強勁增長，因為投資組合的起始資金增加和流失率降低。在今年早些時候短暫暫停以消化利率上升和一些經濟因素變化的影響後，贊助商在本季度重新啟動了流程，第二季度的成交量是第一季度的兩倍。我們在這個渠道中保持紀律，承保經過驗證且一致的信貸結構，專注於知名的讚助商關係，並伺機提高利差以提高我們的回報。

Life insurance premium finance posted a relatively strong growth quarter with slightly higher payoffs more than offset by new policy financings and increased advances on existing policy loans. We continue to see a steady pipeline of new opportunities from an expanding referral network as well as a larger funding tail on a growing book of commitments.

人壽保險保費融資季度增長相對強勁，收益略高，但被新保單融資和現有保單貸款預付款增加所抵消。我們繼續看到來自不斷擴大的推薦網絡以及不斷增長的承諾書上更大的資金尾部帶來的穩定的新機會。

Following a seasonally softer Q1 in the tax credit lending business, activity ramped up this quarter. Closings and advances on existing loans increased as well as affordable housing projects accelerating from Q1 levels following some re-budgeting and capital raising associated with the higher cost environment.

在稅收抵免貸款業務第一季度季節性疲軟之後，本季度的活動有所增加。在與成本較高的環境相關的一些重新預算和融資之後，現有貸款的結清和預付款有所增加，經濟適用房項目也從第一季度的水平開始加速。

SBA posted $12 million of growth in the quarter with steady originations and modestly improved pay down impacts, reflecting our proactive defense of the existing portfolio. Our sales channel remains active and is well positioned to take advantage of elevated demand that could result from any potential credit tightening or liquidity constraints that affect the loan appetite of traditional bank lenders.

SBA 本季度實現了 1200 萬美元的增長，資金來源穩定，首付款影響略有改善，反映出我們對現有投資組合的積極防禦。我們的銷售渠道仍然活躍，並處於有利地位，可以充分利用因任何潛在的信貸緊縮或流動性限製而影響傳統銀行放款人的貸款胃口而導致的需求增加。

Within the geographic markets, displayed on Slide 9, we posted solid loan growth for the quarter across the footprint and continue to steadily grow these portfolios through a consistent value-added and relationship-based sales process. In the Midwest, we've grown 9.5% year-over-year, including $53 million of growth in Q2, which included several prized new middle-market relationships in St. Louis, acquisition financing for existing relationships as well as some modest growth on lines of credit from working capital revolvers and construction loan projects in process.

在幻燈片 9 所示的地理市場中，我們公佈了本季度整個業務範圍內的穩健貸款增長，並通過一致的增值和基於關係的銷售流程繼續穩步增長這些投資組合。在中西部，我們同比增長了 9.5%，其中第二季度增長了 5300 萬美元，其中包括在聖路易斯建立的幾個珍貴的新中間市場關係、現有關係的收購融資以及在來自周轉資金和正在進行的建設貸款項目的信貸額度。

Our Southwestern region had a particularly successful quarter with loans up by $88 million, placing year-over-year growth at roughly 24%. This level of growth is reflective of the strong economic profiles in these markets and our team's ability to develop deep relationships with businesses that are well-positioned to benefit. The Texas team, which has been on board now just over a year, has gained traction quickly and continues to bring on new relationships in the quarter, both C&I operating businesses and commercial real estate.

我們西南地區的季度特別成功，貸款增加了 8,800 萬美元，同比增長約 24%。這種增長水平反映了這些市場強勁的經濟狀況，以及我們團隊與有利受益的企業建立深厚關係的能力。德克薩斯州團隊成立僅一年多，迅速獲得了關注，並在本季度繼續建立新的關係，包括工商業運營業務和商業房地產。

Arizona and Las Vegas's new originations in Q2 were mainly focused around commercial real estate, including projects in the industrial, student housing, medical office, and grocery-anchored retail space. We have positioned our CRE strategy around experienced, proven developers and investors where we are not a transactional lender, but can go deep and gain a meaningful relationship on both sides of the balance sheet.

亞利桑那州和拉斯維加斯第二季度的新項目主要集中在商業房地產，包括工業、學生宿舍、醫療辦公室和雜貨店零售空間項目。我們的商業地產戰略圍繞經驗豐富、經過驗證的開發商和投資者，我們不是交易貸款人，但可以深入並在資產負債表雙方建立有意義的關係。

In our western region of Southern California, we have focused our energy on expanding the diversity and the growth profile of the legacy acquired portfolios by deepening existing loan and deposit relationships and adding resources to a C&I channel consistent with our other markets. This work has gained traction in the market with year-over-year loan growth of nearly 8%, including $80 million in the second quarter. Near term, new originations consist mainly of new C&I relationships across a range of industries, including distribution, construction, manufacturing and transportation.

在南加州西部地區，我們將精力集中在通過深化現有貸款和存款關係以及向與我們其他市場一致的工商業渠道增加資源來擴大遺留收購投資組合的多樣性和增長狀況。這項工作在市場上獲得了關注，貸款同比增長近 8%，其中第二季度貸款額為 8000 萬美元。短期內，新的起源主要包括跨一系列行業的新的 C&I 關係，包括分銷、建築、製造和運輸。

Moving now to deposits, which are outlined for the last 12 months and for the quarter on Slides 10 and 11.

現在轉向存款，幻燈片 10 和 11 概述了過去 12 個月和本季度的情況。

Total deposit balances grew by $465 million in Q2. Overall, client deposit balances were relatively stable with most of the category changes attributable to the remixing of DDA to interest-bearing account types and an increase in the broker deposits used in conjunction with loan growth for the quarter.

第二季度存款餘額總額增長了 4.65 億美元。總體而言，客戶存款餘額相對穩定，大部分類別變化歸因於 DDA 重新混合為計息賬戶類型，以及與本季度貸款增長結合使用的經紀人存款的增加。

Within the regions, shown on Slide 12, client deposit balances did grow across a majority of our major markets and the specialty channels, with the west region experiencing a modest decline. The larger reductions in Southern California are consistent with stronger reactions of depositors to the bank failures located in that geography. As we continue to build our brand and gain traction with our new talent, consistent with our loan trends here, we expect core deposit growth to follow.

在各地區內，如幻燈片 12 所示，我們大多數主要市場和專業渠道的客戶存款餘額確實有所增長，而西部地區則略有下降。南加州的大幅減少與儲戶對該地區銀行倒閉的強烈反應是一致的。隨著我們繼續打造我們的品牌並吸引新人才，與我們在這裡的貸款趨勢一致，我們預計核心存款將隨之增長。

While midyear is typically a softer period of seasonal growth in the commercial book, our commercial and business banking teams are squarely focused on deposit retention and growth with specifically regionally focused plans. We have armed these teams with competitive and flexible product set designed to convert a solid pipeline of qualified opportunities to both recapture excess cash balances from existing clients and attract new accounts.

雖然年中通常是商業賬簿季節性增長較疲軟的時期，但我們的商業和企業銀行團隊通過專門針對區域的計劃，完全專注於存款保留和增長。我們為這些團隊配備了具有競爭力和靈活的產品組合，旨在轉化一系列可靠的合格機會，以從現有客戶那里奪回多餘的現金餘額並吸引新賬戶。

Following strong growth in the first quarter, the specialty deposit businesses posted more modest growth of $30 million in Q2, reflective of a typical seasonal slowdown midyear. Year-to-date, these low-cost channels have grown $458 million or 19% and now represent 25% of total deposits, as you'll see broken out on Slide 13. We continue to see inflows from our existing clients in this space as well as a steady stream of new opportunities originating from property management relationships within our commercial base and the competitive disruption from a few larger players in these lines of business.

繼第一季度強勁增長之後，專業存款業務在第二季度錄得 3000 萬美元的溫和增長，反映了年中典型的季節性放緩。今年迄今為止，這些低成本渠道已增長 4.58 億美元，即 19%，目前佔總存款的 25%，如幻燈片 13 中的細分所示。我們繼續看到該領域現有客戶的資金流入以及來自我們商業基地內的物業管理關係的源源不斷的新機會以及來自這些業務領域的一些較大參與者的競爭干擾。

Slide 14 shows some additional detail on our core funding mix and account activity for the quarter. Deposits are well diversified among our 4 main channels and remain anchored to well-rounded client relationships across a diverse set of industries, households and markets. Within the commercial base, 80% of these clients are using treasury management products and 90% of checking and savings clients are using online banking, which elevates the stability of these balances and reflects the relationship orientation of our base.

幻燈片 14 顯示了有關我們本季度核心資金組合和賬戶活動的一些其他詳細信息。我們的 4 個主要渠道的存款十分多元化，並仍然以跨不同行業、家庭和市場的全面客戶關係為基礎。在商業基地內，80%的客戶使用資金管理產品，90%的支票和儲蓄客戶使用網上銀行，這提高了這些餘額的穩定性，反映了我們基地的關係導向。

Our sales process continues to produce positive results, generating net new account balances across all channels. We've also seen steady net new account open in consumer and specialty channels, while the reduction in the number of accounts year-to-date in the commercial and business banking space primarily reflects the consolidation of balances and the closure of certain account types associated with remixing to the interest-bearing and time deposit products.

我們的銷售流程繼續產生積極成果，在所有渠道中產生淨新賬戶餘額。我們還看到消費者和專業渠道的淨新開戶數量穩定，而商業和企業銀行領域的賬戶數量今年迄今的減少主要反映了余額的合併以及某些相關賬戶類型的關閉。重新組合計息和定期存款產品。

Now I'd like to turn the call over to Keene Turner for his comments. Keene?

現在我想把電話轉給基恩·特納徵求他的意見。基恩？

Thanks, Scott, and good morning, everyone.

謝謝斯科特，大家早上好。

Turning to Slide 15, we reported earnings per share of $1.29 in the second quarter on net income of $49 million. Our net interest income expanded from the linked quarter, which combined with growth in earning assets helped to outpace expected compression in net interest margin. Additionally, fee income declined modestly, which is in line with seasonal expectations. The provision for credit losses was more significant this quarter driven by loan growth. And finally, noninterest expense was higher in the current quarter with continued growth in deposit costs to support our expanding specialized deposit business.

轉向幻燈片 15，我們報告第二季度每股收益為 1.29 美元，淨利潤為 4900 萬美元。我們的淨利息收入較上一季度有所擴大，加上生息資產的增長，有助於超過淨息差的預期壓縮。此外，費用收入小幅下降，這符合季節性預期。在貸款增長的推動下，本季度信貸損失撥備更為顯著。最後，本季度非利息支出較高，存款成本持續增長，以支持我們不斷擴大的專業存款業務。

All things considered, we're pleased with the performance of net interest income, loan growth and overall profitability. Our return profile remains robust and supports our strategy for continued growth.

綜合考慮，我們對淨利息收入、貸款增長和整體盈利能力的表現感到滿意。我們的回報狀況仍然強勁，支持我們持續增長的戰略。

Turning to Slide 16. Net interest income for the quarter expanded by $1.2 million to $141 million. Net interest margin of 4.49% is a 22 basis point reduction from the linked quarter. As expected, rising deposit and funding costs led to margin compression. However, we were able to defend net interest income through relationship-based loan growth. More details follow on Slide 17.

轉向幻燈片 16。該季度的淨利息收入增加了 120 萬美元，達到 1.41 億美元。淨息差為 4.49%，較上一季度下降 22 個基點。正如預期的那樣，存款和融資成本上升導致利潤率壓縮。然而，我們能夠通過基於關係的貸款增長來捍衛淨利息收入。更多詳細信息請參見幻燈片 17。

On the asset side of the balance sheet, a combination of carrying higher cash mid-quarter and portfolio loan growth drove $567 million of average earning asset growth. Yield on earning assets improved by 28 basis points led by the 31 basis point increase in total loan yield. In support of that trend, new loan originations were the largest driver of the change with new loans booked at an average interest rate of 7.6%. This was supported most substantially by origination of C&I loans at 7.9% and SBA loans at 8.75% during the second quarter.

在資產負債表的資產方面，季度中期現金增加和投資組合貸款增長共同推動了平均盈利資產增長 5.67 億美元。在總貸款收益率增加 31 個基點的帶動下，生息資產收益率提高了 28 個基點。為了支持這一趨勢，新貸款發放是這一變化的最大推動力，新貸款的平均利率為 7.6%。第二季度 C&I 貸款的發放率為 7.9%，SBA 貸款的發放率為 8.75%，這為這一點提供了最大的支持。

I mentioned cash balances were higher in the second quarter as we elected to carry more on-balance sheet liquidity in light of the debt ceiling issues we navigated mid-quarter. While this decision was largely neutral to earnings, it was a couple of basis points dilutive to net interest margin in the period. Total average deposit balances grew $474 million in the quarter, including average increase of $431 million in brokered CDs and $43 million in customer deposits. We've utilized brokered CDs because it adds stability and predictability to our funding base, along with reasonable flexibility moving forward to support our asset growth, all while navigating typical midyear seasonality of deposit outflows.

我提到第二季度的現金餘額較高，因為鑑於我們在季度中期解決了債務上限問題，我們選擇在資產負債表上增加更多的流動性。雖然這一決定對盈利基本上是中性的，但稀釋了該期間的淨息差幾個基點。本季度平均存款餘額總額增長了 4.74 億美元，其中經紀 CD 平均增長了 4.31 億美元，客戶存款平均增長了 4300 萬美元。我們使用經紀存款證，因為它增加了我們融資基礎的穩定性和可預測性，並具有合理的靈活性來支持我們的資產增長，同時應對典型的年中存款流出季節性。

Our cost of deposits increased during the quarter as we continued to experience deposit remixing and repricing. This was driven by a combination of interest rate, economic and industry-based factors. While our average cost of deposits -- interest-bearing deposits rose 70 basis points from the prior period, our cumulative deposit beta for the rate cycle is in line with our historical level and reflects the diversified deposit base that's been enhanced since the last cycle. The use of brokered CDs has been an intentional strategy that has provided maximum flexibility on our liquidity position. However, this has increased our total cost of deposits and our total deposit beta.

由於我們繼續經歷存款重新混合和重新定價，我們的存款成本在本季度有所增加。這是由利率、經濟和行業因素共同推動的。雖然我們的平均存款成本（計息存款）較上一期上升了 70 個基點，但利率週期的累積存款貝塔值與歷史水平一致，反映了自上個週期以來存款基礎的多元化。使用經紀存款證是一種有意的策略，為我們的流動性頭寸提供了最大的靈活性。然而，這增加了我們的總存款成本和總存款貝塔值。

Excluding brokered, our deposit beta for the quarter would have been 30% lower, and our total cost of deposits would have been 18 basis points lower. We are pleased with the cost of deposits, all things considered, given the current Fed funds target rate at over 5%, while our total cost of deposits was 1.46%. Despite the remixing, our demand deposits to total deposits is above 33% and reflects some of the business model advantage that we have in funding the balance sheet.

不包括經紀業務，我們本季度的存款貝塔值將降低 30%，存款總成本將降低 18 個基點。鑑於目前聯邦基金目標利率超過 5%，而我們的總存款成本為 1.46%，綜合考慮，我們對存款成本感到滿意。儘管進行了重新組合，我們的活期存款佔總存款的比例仍高於 33%，這反映了我們在為資產負債表提供資金方面擁有的一些業務模式優勢。

Based on our second quarter performance, we believe we have the ability to outpace expected net interest margin compression in the upcoming quarters with a posture of balance sheet growth. Compared with the second quarter performance, we have the opportunity to expand loan pricing, moderate loan growth levels and achieve a greater contribution to the funding through our growth in customer deposits. That means we generally expect to see stable net interest income moving forward, while net interest margin drift downward approximately 10 to 15 basis points per quarter. We're not immune to the remixing and increased competition. However, our business model helps drive the asset side of our balance sheet to mostly absorb those costs.

根據我們第二季度的業績，我們相信，在資產負債表增長的情況下，我們有能力在未來幾個季度超越預期的淨息差壓縮。與第二季度的表現相比，我們有機會擴大貸款定價，適度放貸增長水平，並通過客戶存款的增長實現對資金的更大貢獻。這意味著我們普遍預計未來淨利息收入將保持穩定，而淨息差每季度下降約 10 至 15 個基點。我們無法免受混音和日益激烈的競爭的影響。然而，我們的商業模式有助於推動我們資產負債表的資產方大部分吸收這些成本。

With that, we'll move on to Slide 18, where we demonstrate our credit trends.

接下來，我們將轉到幻燈片 18，展示我們的信用趨勢。

Annualized net charge-offs were 12 basis points in the period compared to a modest recovery in the first quarter. Overall credit losses continued to be -- to trend below historical levels and asset quality metrics remained strong. The provision for credit losses of $6.3 million during the second quarter largely reflects our strong loan growth along with deterioration in projected economic factors.

與第一季度的小幅復甦相比，這一時期的年化淨沖銷為 12 個基點。總體信貸損失繼續低於歷史水平，資產質量指標依然強勁。第二季度信貸損失準備金為 630 萬美元，主要反映了我們強勁的貸款增長以及預計經濟因素的惡化。

Slide 19 presents the allowance for credit losses. The allowance for credit losses increased $3 million in the quarter and represents 1.34% of total loans or 1.48% of unguaranteed loans. We continue to use several economic forecasts in the allowance model with a weighted bias toward a downside scenario and a higher reserve focus on certain segments such as office commercial real estate. This is reflected with qualitative reserves totaling approximately 30% of total allowance.

幻燈片 19 介紹了信用損失準備金。本季度信貸損失準備金增加了 300 萬美元，佔貸款總額的 1.34% 或無擔保貸款的 1.48%。我們繼續在準備金模型中使用多項經濟預測，對下行情景進行加權偏向，並將更高的準備金集中於辦公商業房地產等某些領域。這反映在質量儲備總計約佔總津貼的30%。

On Slide 30, second quarter fee income of $14 million was a decrease of $3 million from the first quarter. This was primarily due to lower tax credit income, and the first quarter included gains on both sale of investment securities and SBA loans. Tax credit income has some seasonal volatility and is typically strongest at the end of each year. We expect fee income to moderate to roughly $12 million to $13 million in the third quarter as we do not anticipate similar levels of community development-related income to repeat. However, we do expect typical seasonal strength in fee income to round out 2023.

在幻燈片 30 上，第二季度的費用收入為 1400 萬美元，比第一季度減少了 300 萬美元。這主要是由於稅收抵免收入減少，而且第一季度包括投資證券銷售和 SBA 貸款的收益。稅收抵免收入具有一定的季節性波動，通常在每年年底最為強勁。我們預計第三季度的費用收入將放緩至約 1200 萬至 1300 萬美元，因為我們預計社區發展相關收入不會出現類似水平。然而，我們確實預計 2023 年費用收入將出現典型的季節性強勁。

Turning to Slide 21. Second quarter noninterest expense was $86 million, an increase of $5 million compared to the first quarter. Deposit service expense as well as other expenses were higher compared to the linked quarter, which was partially mitigated by a sequential decline in employee compensation and benefits. Deposit servicing expense grew roughly $4 million in the quarter due to both rate and volume on certain specialized deposits. As a reminder, the first quarter deposit servicing expenses were lower due to the expiration of certain earnings credits that were forfeited. We expect this line item to continue to expand with both continued growth in balances as well as higher interest rates.

轉向幻燈片 21。第二季度非利息支出為 8600 萬美元，比第一季度增加 500 萬美元。與上一季度相比，存款服務費用以及其他費用較高，但員工薪酬和福利的連續下降部分緩解了這一影響。由於某些專門存款的利率和數量，本季度存款服務費用增長了約 400 萬美元。提醒一下，由於某些被沒收的收益信貸到期，第一季度存款服務費用較低。我們預計，隨著餘額的持續增長和利率的上升，該項目將繼續擴大。

Other expenses grew by roughly $2 million in the quarter, driven primarily by the impact of a credit card event that resulted in elevated losses on both company cards and including outstanding in for customer-related losses and certain operational expenses. Compensation and benefits was lower in the quarter, primarily due to seasonality. This was partially offset by a reduction in open positions as well as a full period of annual merit increases. Overall, we expect noninterest expense to increase to $87 million to $89 million in the third quarter, reflecting an increase in deposit service expense.

本季度其他費用增長了約 200 萬美元，主要是由於信用卡事件的影響，導致兩張公司卡的損失增加，其中包括未償清的客戶相關損失和某些運營費用。本季度的薪酬和福利較低，主要是由於季節性因素。這被未平倉頭寸的減少以及全年績效增長所部分抵消。總體而言，我們預計第三季度非利息支出將增加至 8700 萬美元至 8900 萬美元，反映出存款服務支出的增加。

Also based on the FDIC rule making, we expect the impact of the special assessment to be approximately $2 million once it's finalized. The second quarter's core efficiency ratio was 54% and an increase of 350 basis points compared to the first quarter, driven primarily by both a rise in interest and noninterest expense in the quarter. With some moderation in our net interest margin and net interest income expectations, we do expect core efficiency to move up slightly for the coming quarters. However, this is a function of our expectation for expanding our market share in the specialized deposit business.

同樣根據 FDIC 的規則制定，我們預計特別評估一旦最終確定，其影響將約為 200 萬美元。第二季度核心效率為54%，較第一季度增加350個基點，主要是由於本季度利息和非利息支出的增長。隨著我們的淨息差和淨利息收入預期有所放緩，我們確實預計未來幾個季度的核心效率將略有上升。然而，這是我們對擴大專業存款業務市場份額的預期的結果。

For other expenses, we expect to prudently manage cost controls which are part of our daily discipline. That can be borne out in the underlying operating expense trends from the first to the second quarter.

對於其他費用，我們希望謹慎管理成本控制，這是我們日常紀律的一部分。第一季度至第二季度的基本運營費用趨勢可以證明這一點。

Our capital metrics are shown on Slide 22. Strong quarter earnings offset a decline in accumulated other comprehensive income from the value of securities and derivatives portfolios. This resulted in an expansion of tangible book value per share to $31.23 at the end of June, which is a 9% increase so far this year. The strength of our earnings profile and a high capital retention rate supported our customers and resulted in balance sheet expansion in the quarter.

我們的資本指標如幻燈片 22 所示。強勁的季度收益抵消了證券和衍生品投資組合價值累計其他綜合收益的下降。這導致 6 月底每股有形賬面價值擴大至 31.23 美元，今年迄今增長了 9%。我們強勁的盈利狀況和高資本保留率為我們的客戶提供了支持，並導致本季度的資產負債表擴張。

We have managed our capital and the balance sheet to provide a foundation for continued growth. This is reflected in our tangible common equity ratio of nearly 9% and our common equity Tier 1 ratio of 11.1%. On an adjusted basis, the after-tax unrealized losses on held-to-maturity securities is approximately 40 basis points of tangible common equity and total combined available-for-sale and held-to-maturity losses are approximately 140 basis points of tangible common equity. When including available-for-sale and held-to-maturity losses, adjusted common equity Tier 1 capital is 9.5%, well in excess of the minimum well-capitalized limit of 6.5%.

我們管理我們的資本和資產負債表，為持續增長奠定基礎。這反映在我們近 9% 的有形普通股比率和 11.1% 的普通股一級比率上。在調整後的基礎上，持有至到期證券的稅後未實現損失約為有形普通股的 40 個基點，可供出售和持有至到期的損失總額約為有形普通股的 140 個基點公平。當包括可供出售和持有至到期損失時，調整後的普通股一級資本為 9.5%，遠遠超過資本充足率的最低限額 6.5%。

With that said, we are very pleased with our financial results in the second quarter and the first half of 2023. While the current interest rate and economic environment pose challenges, there are also opportunities for us to continue gathering market share in our regions and improving the overall value of our business. We believe that our diversified platform is positioned to produce strong operating performance relative to the environment in which we operate.

話雖如此，我們對 2023 年第二季度和上半年的財務業績感到非常滿意。雖然當前的利率和經濟環境帶來了挑戰，但我們也有機會繼續擴大在我們地區的市場份額並改善我們業務的整體價值。我們相信，我們的多元化平台能夠產生相對於我們經營環境而言強勁的經營業績。

With that, I appreciate your attention today, and we're now going to open the line for analyst questions.

感謝您今天的關注，我們現在將開通分析師提問熱線。

(Operator Instructions) Your first question comes from the line of Jeff Rulis of D.A. Davidson.

（操作員說明）您的第一個問題來自 D.A. 的 Jeff Rulis。戴維森。

A couple of questions on the expense line, if I could. Just -- Keene, on the $87 million to $89 million, is that inclusive of a $2 million special assessment assumption in that figure?

如果可以的話，請教幾個關於費用的問題。只是 - 基恩，關於 8700 萬至 8900 萬美元，這是否包括該數字中 200 萬美元的特殊評估假設？

No, that's -- Jeff, that's just run rate, and that's really reflecting growth in the deposit business. I think we expect those balances to continue to expand. And pricing is competitive, but we're gaining market share and then the $2 million would be in addition when it occurs.

不，那是——傑夫，這只是運行率，這確實反映了存款業務的增長。我認為我們預計這些餘額將繼續擴大。定價具有競爭力，但我們正在獲得市場份額，然後當它發生時，200 萬美元將是額外的。

Okay, okay. Were there -- the operational losses or the credit card event, what would you -- in the second quarter, would you put as anything onetime there that would likely fall off? I mean, it sounds like the deposit cost is going to outstrip some of that. But just wanted to carve out what was -- what would be onetime in the second quarter, if at all?

好吧好吧。如果出現運營虧損或信用卡事件，您會在第二季度將什麼作為可能會下降的一次性內容？我的意思是，聽起來存款成本將超過其中的一些。但只是想弄清楚第二季度會發生什麼，如果有的話？

Yes $1.3 million of that is we expect to be onetime, and we think that's kind of a one and done estimate. And then there'll be -- just based on the way the accrual works, we needed to accrue that and take it currently, but we have service providers that are involved in helping us with that business, and we'll get some relationship credits moving forward, but it won't be anything meaningful or acute in any one period. So net-net, the economic impact for us will be fairly limited. But in the run rate is $1.3 million that really we didn't expect to be there and I think maybe pushed the expenses a little higher than our guide last quarter.

是的，其中 130 萬美元是我們預計一次性的，我們認為這是一個一次性的估計。然後，根據應計的運作方式，我們需要累積並當前使用它，但我們有服務提供商參與幫助我們開展該業務，我們將獲得一些關係積分向前邁進，但在任何一個時期都不會產生任何有意義或尖銳的事情。因此，對我們的經濟影響將相當有限。但實際運行費用為 130 萬美元，這確實是我們沒想到的，我認為這可能導致支出略高於我們上季度的指導值。

And your next question comes from the line of Damon DelMonte of KBW.

您的下一個問題來自 KBW 的 Damon DelMonte。

Just wanted to look for a little bit more color on the deposit outlook. The noninterest-bearing deposits continue to kind of shift lower. And I think you noted it's around 33% of total deposits. Do you have an idea of where that kind of bottoms? Do you think you can kind of hold it at this level? Or do you expect there to be more migration?

只是想在存款前景上尋找更多的色彩。無息存款繼續下降。我想您已經註意到它約佔總存款的 33%。你知道這種底部在哪裡嗎？你認為你能保持在這個水平嗎？或者您預計會有更多移民？

Damon, it's Jim. I will just say, listen, so our growth, obviously, in the second quarter leaned into the brokerage side, which push that down a little bit. Our goal going forward, obviously, would be to fund it with our base of customer deposits. I would hope that that comes with a significant amount of DDAs from the specialized as well as just the geographic businesses. So I would say holding firm that 30% to 33% range seems fair to us. The goal, obviously, is to get it in as most efficiently as we can. And -- but obviously, the business model we have pushes towards a little bit more DDA than others.

達蒙，是吉姆。我只想說，聽著，所以我們的增長，顯然，在第二季度傾向於經紀業務，這將其推低了一點。顯然，我們未來的目標是用我們的客戶存款基礎為其提供資金。我希望這能帶來來自專業企業和地域企業的大量 DDA。所以我想說，堅持 30% 到 33% 的範圍對我們來說似乎是公平的。顯然，我們的目標是盡可能最有效地實現這一目標。但顯然，我們的商業模式比其他商業模式更傾向於 DDA。

Got it. Okay. And then as far as the outlook for loan growth, I believe the commentary was that it's going to kind of moderate here in the back half of the year. So should we kind of be thinking about like low single digits for the next couple of quarters before it begins to normalize?

知道了。好的。至於貸款增長的前景，我認為評論是今年下半年貸款增長將有所放緩。那麼，在經濟開始正常化之前，我們是否應該考慮未來幾個季度的低個位數增長？

I think I look at it this way, Damon. I think it's getting back to that run rate of that mid to high single-digit and really focusing on those areas where we can garner share of market as well as improve pricing. And there are some nice pockets given the different businesses and markets that we operate in.

我想我是這樣看的，達蒙。我認為它正在回到中高個位數的運行率，並真正專注於我們可以贏得市場份額並提高定價的領域。考慮到我們經營的業務和市場不同，有一些不錯的機會。

And your next question comes from the line of Andrew Liesch of Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Andrew Liesch。

Just a quick question, if you can provide any color on the loan that migrated to nonaccrual in the quarter that was charged off. What sector it might be in? Or if there's any other loans similar to this that might be giving you some concern?

只是一個簡單的問題，您是否可以提供有關在沖銷的季度轉為非應計利息的貸款的任何信息。它可能屬於什麼部門？或者是否還有其他類似的貸款可能會讓您擔心？

Yes, Andrew, it's Scott. I'll handle that one. It's really one credit. It's ABL-type aftermarket, automotive parts manufacturer, and they've just had some lagging issues, dealing with shipping and labor and supply chain disruption, which they just weren't able to overcome. They're undercapitalized and really unable to continue operating. So from that standpoint, I don't see that as a trend. I don't see that as part of a niche or a sector. It's pretty much a one-off. And I think we've charged it down and we think we have the balance under control.

是的，安德魯，我是斯科特。我會處理那個的。這確實是一份功勞。這是 ABL 類型的售後市場、汽車零部件製造商，他們只是遇到了一些滯後問題，涉及運輸、勞動力和供應鏈中斷，但他們無法克服這些問題。他們資金不足，確實無法繼續運營。因此，從這個角度來看，我不認為這是一種趨勢。我不認為這是利基市場或行業的一部分。這幾乎是一次性的。我認為我們已經降低了成本，並且我們認為我們已經控制了平衡。

And your next question comes from the line of Jeff Rulis of D.A. Davidson.

你的下一個問題來自 D.A. 的 Jeff Rulis。戴維森。

Just had a follow-up on the omni expense line as -- Keene, as you were outlining. So if that was $86 million reported noninterest expense, if we back out the -- a little over $1 million onetime gets you below -- well, let's just call it $85 million. I guess the jump there as you talk about that deposit cost increase, it had already been up linked quarter. So I'm trying to get a sense for the pace of that deposit cost increase that's flowing through noninterest expense. Is that going to be a couple of million a quarter or more leak quarter as long as you got to lean into that piece? Just I don't know the run rate of noninterest expense, and that seems like an item that's growing rather quickly.

正如您所概述的那樣，基恩剛剛對全方位支出進行了跟進。因此，如果報告的非利息支出為 8,600 萬美元，如果我們取消——一次略高於 100 萬美元，就會低於——那麼，我們就稱其為 8,500 萬美元吧。我猜當你談論存款成本增加時，那裡的跳躍已經與季度掛鉤。因此，我試圖了解非利息支出中存款成本增加的速度。只要你必須專注於這件事，每個季度或更多季度的洩漏會是幾百萬美元嗎？只是我不知道非利息費用的運行率，這似乎是一個增長相當快的項目。

Yes. Jeff, that number, it's not going to grow sequentially as much as the first quarter. We had that expiration of credits in the first quarter. So that normalized number in the first quarter was like $14 million. I think the number in the second quarter is like $16 million. So that kind of $2 million to $3 million depending on collected balances and how much we're growing that there. I think that's generally what we're expecting to see as long as that continues to perform in line with where we've been and pricing continues to be competitive there.

是的。傑夫，這個數字不會像第一季度那樣連續增長。我們第一季度的積分就到期了。因此，第一季度的標準化數字約為 1400 萬美元。我認為第二季度的數字約為 1600 萬美元。因此，200 萬至 300 萬美元取決於收集的餘額以及我們在那裡增長的程度。我認為這通常是我們所期望看到的，只要它的表現繼續與我們一直以來的水平一致並且定價繼續具有競爭力。

And your next question comes from the line of Brian Martin of Janney.

你的下一個問題來自 Janney 的 Brian Martin。

Nice quarter. I'd say just a question maybe for Keene on the margin. Just Keene, I appreciate the commentary. Just as far as the margin trending down, but the NII stabilizing, kind of where do you -- what is kind of your rate outlook here kind of baked in there? And then just how are you thinking about when the margin might stabilize? And the second part of it is just if we do get some rate cuts next year, can you just remind us how you expect the margin to perform in that type of scenario?

不錯的季度。我只想問基恩一個問題。只是基恩，我很欣賞你的評論。就利潤率呈下降趨勢而言，但國家信息基礎設施趨於穩定，您的利率前景是怎樣的？那麼您如何考慮利潤率何時會穩定下來？第二部分是，如果我們明年確實會降息，您能否提醒我們，在這種情況下，您預計利潤率會如何表現？

Yes. Let me try to tackle your comments first. I mean I think we're projecting out in the next couple of quarters. Obviously, we've got a next 12 months projection. But I think the way we're thinking about that is that it's still extremely early in terms of the -- trying to get an accurate next 12 months prediction with how much the variables have been moving around first, second quarter. Our general outlook is that if you call margin today, roughly 4.45%, I think you drift 20 basis points to the end of the year is kind of what we're seeing. And even if we get one or two 25 basis point rate hikes here, I think we generally expect that maybe but for timing or lagging that those are going to get absorbed with competitive deposit pressures.

是的。讓我先嘗試解決您的評論。我的意思是，我認為我們預計會在接下來的幾個季度內完成。顯然，我們有未來 12 個月的預測。但我認為我們思考這個問題的方式是，就試圖通過第一、第二季度變量的變化程度來準確預測未來 12 個月而言，現在還為時過早。我們的總體前景是，如果你今天稱保證金約為 4.45%，我認為到年底你會漂移 20 個基點，這就是我們所看到的情況。即使我們在這裡加息一兩次 25 個基點，我認為我們普遍預計，如果不是時機或滯後，這些加息可能會被競爭性存款壓力所吸收。

So maybe I'd like to hope that that's a little bit conservative. We've got some costs baked in there in terms of the interest expense and continued degradation of beta and some of those things. But I think we feel good about sort of $140 million of net interest income in the next couple of quarters with the growth that Jim talked about and then margins sort of drifting to, call it, 4.25%, 4.20% by the end of the year.

所以也許我希望這有點保守。我們在利息支出和貝塔的持續退化等方面產生了一些成本。但我認為，隨著吉姆談到的增長，我們對未來幾個季度 1.4 億美元的淨利息收入感到滿意，然後利潤率會在年底前達到 4.25%、4.20% 。

And then I think that generally, our view is that we're trying to listen to the Fed, and that's pretty clearly higher for longer. I don't know that we're thinking that there's any near-term pressure to go from what looks like an interest rate increase here in July and then maybe one later this year to multiple cuts next year. So I think we think that that fund stays fairly stable for at least the first half of next year. And then obviously, we're asset sensitive. We're becoming a little bit less asset sensitive with some of the remixing that's occurring from DDA and the use of brokered CDs. And so obviously, those things to the extent, we get some cuts, will provide some opportunity, but we will experience margin compression.

然後我認為，總的來說，我們的觀點是，我們正在努力聽取美聯儲的意見，而且在更長的時間內，這一點顯然會更高。我不知道我們是否認為存在任何短期壓力，從 7 月份加息、今年晚些時候可能加息到明年多次降息。因此，我認為該基金至少在明年上半年保持相當穩定。顯然，我們對資產很敏感。由於 DDA 中發生的一些混音和經紀 CD 的使用，我們對資產的敏感度逐漸降低。顯然，這些事情在某種程度上，我們得到了一些削減，將提供一些機會，但我們將經歷利潤率壓縮。

We'll file our Q here in the next week, and we'll get you some more sensitivities around what that compression looks like. But certainly, we're an asset-sensitive company and down rates, depending on how that plays out, will certainly take some of that out. So it's going to depend on how quickly, how aggressively and how -- what is, quite frankly, deposit competition and flows look like if and when that starts to occur.

我們將在下週在這裡提交我們的問題，我們會讓您對壓縮的外觀有更多的敏感性。但當然，我們是一家對資產敏感的公司，根據情況的不同，降息肯定會消除一些影響。因此，這將取決於存款競爭和流動是否以及何時開始發生，坦率地說，這將取決於存款競爭和流動的速度、力度和方式。

Got you. Okay. And then just as far as the loan areas, you're focused on with maybe focusing maybe a bit more on yield. I guess, is it -- I guess, where do you expect the growth that maybe more to come from in the second half of the year, just the near term?

明白你了。好的。然後就貸款領域而言，您可能會更加關注收益率。我想，我想，您預計今年下半年（即近期）的增長可能會來自哪裡？

Brian, this is Scott. I would say, I think we're taking an opportunity to push spreads really across the portfolio, but particularly in areas that would be fixed rate or where I think the competition or supply-demand dynamics are advantageous. So I think CRE is one of those areas where we're being judicious on how we approach the market. We're supporting clients, we're lending into new relationships that can bring significant deposit opportunities. Property management would be a good example of how we're leveraging our specialty to lend into commercial real estate.

布萊恩，這是斯科特。我想說，我認為我們正在利用機會真正推動整個投資組合的利差，特別是在固定利率或我認為競爭或供需動態有利的領域。因此，我認為商業地產是我們在進入市場時保持審慎態度的領域之一。我們為客戶提供支持，我們為新的關係提供貸款，從而帶來大量的存款機會。物業管理將是我們如何利用我們的專業知識為商業房地產提供貸款的一個很好的例子。

But I think you saw a lot of our growth with new relationships in C&I, particularly in our newer markets. And I think that's where you'd see us being more aggressive because those are sticky relationships that bring deposits, that bring fee income that don't use the full commitment typically. And then in the specialty areas. You heard my comments on sponsors. I think that moderates a bit in the second half, whereas I think we're seeing opportunities in areas like life insurance premium, where some of our competition is vacated the markets, and we can actually push pricing a little bit and get high-quality loans there.

但我認為您看到了我們在工商業領域的新關係的增長，特別是在我們的新市場中。我認為這就是我們更加積極進取的地方，因為這些是帶來存款的粘性關係，帶來通常不使用全部承諾的費用收入。然後是專業領域。你聽到了我對贊助商的評論。我認為下半年情況會有所緩和，而我認為我們在人壽保險保費等領域看到了機會，我們的一些競爭對手已經退出市場，我們實際上可以稍微提高定價並獲得高質量的產品那裡有貸款。

(Operator Instructions) Your next question comes from the line of Eric Grubelich, a private investor.

（操作員說明）您的下一個問題來自私人投資者 Eric Grubelich。

Question for Keene. Two things related to the interest rate sensitivity and the margin. So to what extent with like the new loans that you're booking at variable rates are you utilizing floors on that production that may help you if rates do drop a couple of quarters from now?

向基恩提問。有兩件事與利率敏感性和保證金有關。那麼，對於您以可變利率預訂的新貸款，您在多大程度上利用了該產品的下限，如果利率確實在幾個季度後下降，這可能會對您有所幫助？

Yes. So Eric, thanks for your question. We're able to get floors into most new loans. I think the nuance on that is the floors on most of what we have is relatively low. And I don't know that I looked at it and said, "Hey, here's where the floors are and the stuff we booked this last quarter." But the loans that do have floors are, call it, 2.5% to 3% above the floor, and the proportions are sort of pretty commensurate with what they've been historically. So you've got roughly 63% variable rate, and you've got about 1/3 with no floor and then 2/3 with the floor.

是的。埃里克，謝謝你的問題。我們能夠為大多數新貸款提供底線。我認為其中的細微差別是我們所擁有的大部分樓層都相對較低。我不知道我看著它並說：“嘿，這是樓層和我們上季度預訂的東西。”但確實有下限的貸款比下限高出 2.5% 到 3%，而且這個比例與歷史上的比例相當相稱。所以你有大約 63% 的可變利率，大約 1/3 沒有下限，然後 2/3 有下限。

But as you might expect, there's also a good portion of that book that's not new and really rose off of the floor that helped us just 2 years ago. So don't have good information for you on that, but we are getting floors on whatever competitive terms we can get in the current environment.

但正如您所預料的那樣，這本書中也有很大一部分內容並不新鮮，而且確實是兩年前為我們提供幫助的。因此，我們沒有這方面的詳細信息，但我們正在根據當前環境下可以獲得的任何競爭條款獲得底線。

Okay. And then just another thing that is kind of -- just trying to get my head around I saw that, like everybody else did, the big growth in the broker deposits this quarter. I would imagine those that at the margin, those rates are probably 5% plus, right? How does that compare to what you're paying in your money market and your interest bearing? I mean is there a trade-off there where you can ratchet it up a little bit more on those core customer accounts or is there a reason why you don't want to do that versus buying broker deposits, which are non-relationship.

好的。然後還有另一件事——只是想弄清楚，就像其他人一樣，本季度經紀人存款大幅增長。我想，在邊際上，這些利率可能會超過 5%，對嗎？這與您在貨幣市場上支付的費用和利息相比如何？我的意思是，是否存在一種權衡，您可以在這些核心客戶賬戶上增加一點，或者您是否有理由不想這樣做，而不是購買經紀人存款（這是非關係性的）。

Yes. I think the balance we're trying to strike is a little bit of timing. So number one, if you look at it as a tide, the tide is the highest in the fourth quarter and then it starts to gradually go out in the first half of the year. And then June 30 for us is typically low tide for deposits, and now you're starting to see it come back. We're only 25 days into the third quarter, and we've got sitting here with nice DDA and some other growth. And that's not a trend yet, but I think we're encouraged by that.

是的。我認為我們試圖達到的平衡是時機的問題。所以第一，如果你把它看作潮汐，潮汐在第四季度是最高的，然後在上半年開始逐漸退去。然後 6 月 30 日對我們來說通常是存款的低潮，現在你開始看到它回來了。第三季度才剛剛過去 25 天，我們就已經坐擁良好的 DDA 和其他一些增長。這還不是一種趨勢，但我認為我們對此感到鼓舞。

And I think the art of it is to make sure that we're -- we've got to pay the right amount for new and growing balances. But when you start to look at the math on certain pockets of pricing to drive up $10 billion of pricing to 5%, whereas the blended rate is quite a bit lower than that. We're just trying to strike that fine balance. So the brokered CDs allow us to maybe not be as panic in terms of competing in the near term, and we've got plenty of broker capacity and wholesale capacity to move forward, but it allows us to play a little bit longer game or leverage the sales cycle a little bit more and maybe overall, call it, over the course of multiple quarters and even years have a better, higher quality funded balance sheet and drive a little bit more profitability a couple of quarters out versus in the near term or panic and try to drive a bunch of deposit growth, but at what cost?

我認為它的藝術在於確保我們必須為新的和不斷增長的餘額支付適當的金額。但當你開始計算某些定價部分的數學時，將 100 億美元的定價提高到 5%，而混合利率卻比這個數字低得多。我們只是想達到這種微妙的平衡。因此，經紀CD可能讓我們在短期內的競爭方面不會那麼恐慌，而且我們有足夠的經紀商能力和批發能力來前進，但它允許我們玩更長時間的遊戲或槓桿銷售週期稍微長一些，也許總體而言，在多個季度甚至幾年的過程中，擁有更好、更高質量的資金資產負債表，並在幾個季度內比短期內提高盈利能力，或者恐慌並試圖推動大量存款增長，但代價是什麼？

So hopefully, that gives you some color and some thought about how we're thinking about it, but we always try to keep the profitability in 2 years on the horizon versus the profitability of the current quarter, and we're trying to manage the little bit of the sentiment that's out there in the current environment but utilize the strength of the liquidity profile and balance sheet we've got to maybe be a little bit more patient in that way.

因此，希望這能讓您對我們的想法有所了解和思考，但我們始終努力保持 2 年內的盈利能力與當前季度的盈利能力相比，並且我們正在努力管理當前環境中存在一些情緒，但利用流動性狀況和資產負債表的優勢，我們可能必須在這方面更加耐心。

Thank you. As there are no further questions at this time, I would like to turn the call back to Jim Lally for closing remarks. Please go ahead, sir.

謝謝。由於目前沒有其他問題，我想將電話轉回吉姆·拉利 (Jim Lally) 發表結束語。請繼續，先生。

Jay, thank you, and thank you all for joining us this morning, and thank you for your interest in our company. Look forward to talking to you again after the third quarter if not sooner. Have a great day.

傑伊，謝謝你，感謝大家今天早上加入我們，也感謝你們對我們公司的興趣。期待在第三季度之後再次與您交談（如果不是更早的話）。祝你有美好的一天。

And this concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。