Enterprise Financial Services Corp (EFSC) 2023 Q3 法說會逐字稿

Thank you for standing by. At this time, I would like to welcome everyone to the Enterprise Financial Services Corp Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Jim Lally, President and CEO of Enterprise Financial Corp, you may begin your conference.

謝謝你的支持。現在，我歡迎大家參加 Enterprise Financial Services Corp 2023 年第三季財報電話會議。 （操作員指示） Enterprise Financial Corp 總裁兼執行長 Jim Lally，您可以開始會議了。

Well, thank you, and thank you all very much for joining us this morning, and welcome to our 2023 third 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.

好的，謝謝大家，非常感謝大家今天早上加入我們，歡迎參加我們的 2023 年第三季財報電話會議。今天早上加入我的是 EFSC 財務長兼營運長 Keene Turner；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. So 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簡報的副本。昨天，該簡報和收益發布已在 SEC 8-K 表格中提供。因此，請參閱標題為「前瞻性陳述」的簡報的投影片 2 以及我們最新的 10-K 和 10-Q，以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。

The third quarter represents a strong performance during a series of rapid changes affecting the economic, and therefore, banking landscape. Our business model, associate base and management team has been constructed to perform during times of challenge. Our teams are adept at navigating difficult circumstances and using them to differentiate our strength as a banking partner.

第三季表現強勁，經歷了一系列影響經濟乃至銀行業格局的快速變化。我們的業務模式、員工基礎和管理團隊的建構是為了在挑戰時期表現出色。我們的團隊善於應對困難的環境，並利用它們來凸顯我們作為銀行合作夥伴的優勢。

Over the last several years, we have worked diligently to diversify our business model such that we do not have to depend on any one business, market or asset class to produce high-quality and predictable earnings.

在過去的幾年裡，我們努力實現業務模式多元化，這樣我們就不必依賴任何一種業務、市場或資產類別來產生高品質和可預測的收益。

Our third quarter financial results and momentum that we displayed on both sides of the balance sheet during all of 2023 are the results of this focused strategy. The business model delivered well again in the third quarter of 2023.

我們在 2023 年全年的第三季財務業績和資產負債表兩側所顯示的動能就是這項重點策略的結果。此業務模式在 2023 年第三季再次表現良好。

Our financial scorecard begins on Slide 3. Our strong financial performance continued during the third quarter. We earned net income of $44.7 million or $1.17 per diluted share, and we produced an ROAA of 1.26% and a PPNR [ROA] of 1.84%. These results reflect a robust earnings profile that easily allowed us to absorb some deterioration in credit during the third quarter.

我們的財務記分卡從投影片 3 開始。第三季我們繼續保持強勁的財務表現。我們的淨利潤為 4,470 萬美元，即稀釋後每股收益 1.17 美元，ROAA 為 1.26%，PPNR [ROA] 為 1.84%。這些結果反映了強勁的獲利狀況，使我們能夠輕鬆吸收第三季信貸惡化的影響。

Combined with our already strong reserves and balance sheet, we remain positioned to operate from a position of strength. This means both delivering returns to shareholders, while also supporting the needs of existing and new clients. The ability to continue to fulfill the loan needs of these clients and prospects have opened up channels of deposit growth as well.

結合我們已經強大的儲備和資產負債表，我們仍然能夠以優勢地位運作。這意味著既要為股東帶來回報，又要滿足現有和新客戶的需求。繼續滿足這些客戶和潛在客戶的貸款需求的能力也開闢了存款成長的管道。

Our net interest income increased over $900,000 in the quarter, a trend that has continued each quarter since the beginning of 2022. This result, despite challenging competitive and interest rate conditions reflects the strength of the franchise we have built. We remain positioned to produce high-quality earnings stream that consistently improves shareholder value through deep-rooted client relationships.

本季我們的淨利息收入成長超過 90 萬美元，這一趨勢自 2022 年初以來每季都在持續。儘管競爭和利率條件充滿挑戰，但這一結果反映了我們所建立的特許經營權的實力。我們仍然致力於創造高品質的收益流，透過根深蒂固的客戶關係不斷提高股東價值。

Growth of net interest income was aided by the defense and resilience of our net interest margin at 4.33%. This is a direct result of our appropriately priced stable deposit base and our ability to originate commensurate to the needs of our clients, but priced well amid the current interest rate environment.

淨利息收入的成長得益於我們淨利差保持在 4.33% 的穩定和彈性。這是我們定價適當的穩定存款基礎以及我們能夠滿足客戶需求的直接結果，但在當前利率環境下定價良好。

As we thought would happen, loans moderated in the quarter largely through lower line utilization and a focus on higher-[valued] segments. This resulted in loan growth during the quarter of $104 million and total outstanding loans at the end of the quarter of $10.6 billion.

正如我們所預料的那樣，本季度貸款放緩主要是由於線路利用率下降和對高[價值]細分市場的關注。這導致本季貸款增加 1.04 億美元，季末未償還貸款總額達 106 億美元。

We also committed to funding our second half growth [with] client deposits, an area where we made significant progress in the current period. For the quarter, we grew net deposits $290 million. Netting out the reduction in brokered CDs, client deposits grew by $488 million in the quarter.

我們也致力於透過客戶存款為下半年的成長提供資金，這是我們本期取得重大進展的領域。本季度，我們的淨存款成長了 2.9 億美元。扣除經紀 CD 的減少後，本季客戶存款增加了 4.88 億美元。

Equally impressive is the fact that the DDA as a percentage of total deposits remained strong at 32% and our loan-to-deposit ratio at quarter end was 89%. Scott will give much more color on the markets and businesses where we saw continued success, but we are encouraged that we have a significant amount of runway to continue growing throughout the remainder of 2023 and into 2024.

同樣令人印象深刻的是，DDA 佔總存款的百分比仍保持在 32% 的強勁水平，季末的貸存比為 89%。 Scott 將為我們看到持續成功的市場和業務提供更多的信息，但令我們感到鼓舞的是，我們有大量的跑道可以在 2023 年剩餘時間和 2024 年繼續增長。

Our balance sheet remains strong and positioned for continued growth. Capital levels at quarter end remained stable and strong, with our TCE/TA ratio of 8.51%. Tangible book value per common share was $31.06, an increase of over 8% this year due to our strong earnings that has more than offset the impact of securities portfolio in AOCI.

我們的資產負債表依然強勁，並有望持續成長。季末資本水準保持穩定和強勁，TCE/TA 比率為 8.51%。每股普通股有形帳面價值為 31.06 美元，今年成長超過 8%，因為我們強勁的獲利足以抵銷 AOCI 證券投資組合的影響。

During the quarter, we did see credit begin to normalize. However, the results I noted both on the income statement and the balance sheet reflect that we both anticipated and are positioned well to deal with these changes.

在本季度，我們確實看到信貸開始正常化。然而，我在損益表和資產負債表上註意到的結果反映出，我們都預期並且已經做好了應對這些變化的準備。

I did want to provide a little color around one commercial office loan that moved into OREO during the quarter. This was a St. Louis based borrower that had a single tenant, Midtown office building where the tenant defaulted on its lease. After pay downs related to the personal guarantees and lease termination penalties, we charged off approximately $4.7 million of an approximately $16 million loan balance. This loan represented our only single-tenant office CRE loan in our portfolio.

我確實想為本季度轉移到奧利奧的一筆商業辦公貸款提供一些資訊。這是一家總部位於聖路易斯的借款人，擁有單一租戶，位於中城辦公大樓，該租戶拖欠租約。在支付與個人擔保和租賃終止罰款相關的首付款後，我們從約 1,600 萬美元的貸款餘額中扣除了約 470 萬美元。這筆貸款是我們投資組合中唯一的單一租戶辦公室 CRE 貸款。

Additionally, we saw nonperforming loans edge up in the quarter. It's important to reiterate that the strength of our earnings profile generates pre-provision earnings that have averaged nearly $70 million a quarter this year. This provides a significant buffer to absorb credit issues before ever touching our loan loss reserves or capital. There are also very strong levels, particularly when considering the short duration of our loan portfolio.

此外，我們也看到本季不良貸款小幅上升。需要重申的是，我們強勁的獲利狀況使得今年每季的撥備前獲利平均接近 7,000 萬美元。這為在觸及我們的貸款損失準備金或資本之前吸收信貸問題提供了重要的緩衝。也有非常強的水平，特別是考慮到我們的貸款組合期限較短。

Slide 5 shows where we are focused for the foreseeable future. Just like we've done -- just as we've done so far this year, in the second half of 2023, we will continue to be focused on funding future loan growth with client deposits. Additionally, I'm confident that we can continue to improve shareholder value through the execution of our strategy.

投影片 5 顯示了我們在可預見的未來的關注重點。就像我們今年迄今為止所做的那樣，在 2023 年下半年，我們將繼續專注於用客戶存款為未來的貸款成長提供資金。此外，我相信我們可以透過執行我們的策略來繼續提高股東價值。

Our focus combined with modest improvement in certain business lines and markets, along with continued steadfast expense management should consistently produce strong earnings amid the current economic and rate environment that we are in. My optimism for our prospects stems from both my confidence in our existing performance, but also my conversations I'm having with our clients.

我們的重點加上某些業務線和市場的適度改善，再加上持續堅定的費用管理，在我們當前所處的經濟和利率環境下，應該會持續產生強勁的收益。我對我們​​前景的樂觀源自於我對我們現有業績的信心，還有我與客戶的對話。

Our manufacturing and distribution clients continue to have good backlogs and consistent sales volumes. Margins are compressing slightly due to increased labor and interest expense, causing overall profitability to decline, but not to a point where debt service has been compromised. Advising and helping clients navigate through times like these is the specialty of our teams. Past turbulent times have shown that these conversations will solidify the relationships that we currently have and invite several more companies to come our way.

我們的製造和分銷客戶繼續擁有良好的積壓訂單和穩定的銷售。由於勞動力和利息支出增加，利潤率略有壓縮，導致整體獲利能力下降，但還沒有達到償債能力受到損害的程度。為客戶提供建議並幫助他們渡過這樣的時期是我們團隊的專長。過去的動盪時期表明，這些對話將鞏固我們目前的關係，並邀請更多的公司加入我們的行列。

Our CRE clients predict a much lower 2024. Current projects will be completed, but new opportunities [would] be challenged with higher costs, particularly interest expense. I believe that higher demand asset classes such as industrial and housing will find return equilibrium such that we will see projects and corresponding loan demand come to life late in 2024. I do believe that this is -- this bit of optimism will manifest itself in our higher-growth markets like Phoenix, Dallas and Southern California.

我們的 CRE 客戶預測 2024 年的數字要低得多。目前的專案將完成，但新的機會將面臨更高成本（尤其是利息支出）的挑戰。我相信，工業和住房等需求較高的資產類別將找到回報均衡，這樣我們將看到項目和相應的貸款需求在 2024 年底實現。我確實相信，這種樂觀情緒將體現在我們的鳳凰城、達拉斯和南加州等成長較高的市場。

With all that said, I feel strongly that our multiple business lines and geographies will be robust enough to produce loan volumes in the mid-single-digit range over the next several quarters, funded by our continued success in generating well-priced relationship-oriented client deposits.

話雖如此，我強烈認為，我們的多個業務線和地區將足夠強大，能夠在未來幾個季度產生中等個位數的貸款量，這得益於我們在創造價格合理的關係導向型貸款方面的持續成功。客戶存款。

Before turning the call over to Scott, another piece of good news I would like to share is that we were recently awarded a $60 million new market tax credit allocation by the Community Development Financial Institutions Fund, or the CDFI, a bureau within the United States Department of the Treasury. This will serve us well over the next 12 to 18 months to attract new clients and projects that qualify for these credits.

在將電話轉給 Scott 之前，我想分享的另一個好消息是，我們最近獲得了美國社區發展金融機構基金 (CDFI) 授予的 6000 萬美元新市場稅收抵免撥款財政部。這將有助於我們在未來 12 至 18 個月內吸引有資格獲得這些積分的新客戶和專案。

With that, I would like to turn the call over to Scott Goodman. Scott?

說到這裡，我想把電話轉給史考特古德曼。史考特？

Thank you, Jim, and good morning, everyone. As you heard from Jim and as we show on Slide #6, loans grew by $104 million in the quarter and results in year-over-year growth of 13.5%. Components of the growth for the last 12 months are broken out on Slide #7 and reflect the prior comments regarding balance and diversification with increases across all major categories and proportionate between our metro markets and the specialized lines of business.

謝謝吉姆，大家早安。正如您從 Jim 那裡聽到的以及我們在第 6 張幻燈片中顯示的那樣，本季貸款增長了 1.04 億美元，同比增長 13.5%。幻燈片 #7 詳細列出了過去 12 個月的成長組成部分，反映了先前關於平衡和多元化的評論，所有主要類別的成長以及我們的地鐵市場和專業業務線之間的比例。

For the quarter, shown on Slide #8, we saw the most lift in the owner-occupied commercial real estate, tax credit and construction categories. It's also worth noting that revolving line of credit usage declined in the quarter as operating companies manage their working capital more efficiently in response to higher rates and a more risk-off approach to their businesses. Outstanding balances on lines declined by $100 million in the quarter. So while the C&I loan portfolio was down by $9 million, net [of line] reductions, this book actually grew $91 million.

如幻燈片#8 所示，本季我們看到，自住商業房地產、稅收抵免和建築類別的增幅最大。另外值得注意的是，本季循環信貸使用量有所下降，因為營運公司為了應對更高的利率和更規避風險的業務方式而更有效地管理其營運資金。本季線路未償餘額減少了 1 億美元。因此，雖然 C&I 貸款組合減少了 900 萬美元（扣除淨額），但本書實際上增加了 9,100 萬美元。

This C&I lift as well as the owner-occupied commercial real estate growth reflects continued success in attracting new operating company relationships and expanding business with our existing clients. The Construction category rose in conjunction with improved momentum of projects following the code and supply chain induced construction lags that we saw last year and earlier this year.

工商業的成長以及業主自用商業房地產的成長反映了我們在吸引新的營運公司關係和擴大與現有客戶的業務方面的持續成功。建築類別的成長與我們去年和今年早些時候看到的規範和供應鏈導致的建築滯後項目勢頭的改善相結合。

And while we are certainly seeing new development loan requests slow significantly, the existing projects closed over the past 12 to 18 months are continuing to move forward. This portfolio overall is well-diversified with the majority of the book fairly well-balanced within the multifamily, residential, industrial and mixed-use projects.

雖然我們確實看到新的開發貸款請求大幅放緩，但過去 12 至 18 個月關閉的現有項目仍在繼續推進。該投資組合總體上是多元化的，本書的大部分內容在多戶、住宅、工業和混合用途項目中相當平衡。

Investor-owned CRE office represents less than 5% of this total construction book. Within the specialized business units, tax credit lending had a strong quarter, reflecting continued momentum in the funding of existing affordable housing projects on the books.

投資者擁有的 CRE 辦公室佔建築總量的不到 5%。在專業業務部門內，稅收抵免貸款季度表現強勁，反映出現有經濟適用房屋專案的融資動能持續強勁。

Jim also mentioned our recent award of $60 million in new market tax credit allocation by the U.S. Treasury Department. As we have with prior awards, these credits will serve as a catalyst to facilitate much needed projects within underinvested areas in our metro markets. But these credits will also allow our bankers to bring a differentiated solution to the table to attract new banking relationships and can provide a source of fee income, which is typically 7% to 8% of the allocation earned over 7 years.

Jim 也提到美國財政部最近授予我們 6000 萬美元的新市場稅收抵免撥款。正如我們之前的獎項一樣，這些信貸將成為催化劑，促進我們的地鐵市場投資不足地區急需的項目。但這些信貸也將使我們的銀行家能夠提供差異化的解決方案，以吸引新的銀行關係，並可以提供費用收入來源，通常佔 7 年分配收入的 7% 至 8%。

Life insurance premium finance grew modestly this quarter, with some seasonally slower premium fundings on existing policies but has grown nearly 19% year-over-year and continues to build a solid pipeline of new opportunities.

本季人壽保險保費融資溫和成長，現有保單的保費融資季節性放緩，但年增近 19%，並繼續建立穩固的新機會管道。

Sponsor Finance also had a modest growth quarter, reflecting some seasonal softness on origination volume, but also an uptick in pay downs related to the sale of portfolio companies by our private equity sponsor companies.

Sponsor Finance 的季度成長也溫和，反映出發起量的季節性疲軟，但也反映出與我們的私募股權贊助公司出售投資組合公司相關的付款有所增加。

The SBA portfolio declined by $19 million in Q3, mainly due to the sale of $33 million in 7(a) loans. Payoffs continue to be somewhat of a headwind from certain borrowers that are now bank qualified, while origination volumes were stable and in line with expectations.

第三季度，SBA 投資組合減少了 1,900 萬美元，主要是因為出售了 3,300 萬美元的 7(a) 貸款。某些目前已獲得銀行資格的借款人的回報仍存在一定的阻力，而發放量則穩定且符合預期。

We also remain focused on improving returns opportunistically within specialties or in loan categories where the supply-demand dynamics have shifted. Generally, in these cases and depending upon the loan type, we're targeting some combination of higher loan spreads or requiring associated compensating deposit balances. A regional breakdown of the loan trends are shown on Slide #9.

我們也持續致力於在供需動態變化的專業或貸款類別中機會主義地提高回報。一般來說，在這些情況下，根據貸款類型，我們的目標是較高貸款利差的某種組合或要求相關的補償性存款餘額。投影片 #9 顯示了貸款趨勢的區域細分。

Growth of the specialized businesses continues on a solid and steady pace, up 15% annualized for the quarter and 19% year-over-year. In addition to my prior comments on these specialized businesses, our practice finance unit also performed well in 2023, growing by roughly $70 million year-to-date, including $23 million of growth in Q3. This team, which has a long history and deep expertise in this niche focuses mainly on banking, dental and veterinary practices, which are generally viewed as stable and high credit quality business types.

專業業務持續保持穩健成長，本季年化成長率為 15%，年成長 19%。除了我之前對這些專業業務的評論之外，我們的實踐財務部門在 2023 年也表現良好，今年迄今增長了約 7000 萬美元，其中第三季度增長了 2300 萬美元。該團隊在這一領域擁有悠久的歷史和深厚的專業知識，主要專注於銀行、牙科和獸醫業務，這些業務通常被視為穩定且信用品質高的業務類型。

Within the Midwest region, reduction in revolving lines were a primary headwind to growth this quarter, offsetting some of the otherwise solid origination activity. New relationships were opened in Kansas City and St. Louis for reputable long-standing companies in these markets with businesses such as electrical contracting, hospitality, entertainment and medical services.

在中西部地區，循環線路的減少是本季成長的主要阻力，抵消了一些原本穩定的起始活動。在堪薩斯城和聖路易斯，這些市場上信譽良好的長期公司與電氣承包、酒店、娛樂和醫療服務等業務建立了新的合作關係。

The Southwest region of Arizona, New Mexico, Las Vegas and Texas grew by $50 million in the quarter, posting year-over-year loan growth of 26% and reflecting our team's successes in leveraging the above-average economic growth profile in these markets.

亞利桑那州、新墨西哥州、拉斯維加斯和德克薩斯州西南地區本季增長了5,000 萬美元，貸款年增26%，反映出我們團隊在利用這些市場高於平均水平的經濟成長狀況方面取得了成功。

Significant wins in Q3 included several new owner-operator and C&I deals with a large local not-for-profit and automotive services business, a regional storage operator and a commercial design company. In addition, these markets benefited from the elevated fundings under existing construction lines.

第三季的重大勝利包括與一家大型當地非營利和汽車服務企業、一家區域倉儲營運商和一家商業設計公司達成的幾家新業主營運商和 C&I 交易。此外，這些市場也受惠於現有建設項目的資金增加。

In Southern California, which is our West region, we continue to show positive momentum, posting another quarter of growth. Year-over-year, this portfolio is up 9.3%, following an intentional shift during 2022 to move away from higher-risk, large, fix-and-flip Resi Real Estate lending and focus the legacy platform on a more balanced relationship-based CRE and C&I strategy, which is consistent with our other markets.

在我們的西部地區南加州，我們繼續表現出積極的勢頭，又實現了一個季度的成長。該投資組合年增 9.3%，此前該投資組合在 2022 年有意轉變，放棄高風險、大型、固定和翻轉的 Resi 房地產貸款，並將傳統平台重點放在基於關係的更加平衡的平台上CRE 和C&I策略，與我們其他市場一致。

New loans during Q3 included moderate to midsized 7-figure relationships with an apparel manufacturer, a hospitality business, transportation company and specialty printing business. We've also continued to expand our talent base in this region, adding a new market leader in San Diego as well as 2 experienced relationship managers and a treasury management officer in the L.A. Orange County market during the quarter.

第三季的新貸款包括與一家服裝製造商、一家酒店企業、運輸公司和專業印刷企業的中型至中型關係，金額為 7 位數。我們也繼續擴大在該地區的人才基礎，本季在聖地牙哥增加了一名新的市場領導者，在洛杉磯橘郡市場增加了兩名經驗豐富的客戶關係經理和一名財務管理官員。

Moving now to deposits, which are broken out on Slides #10 and 11. Total balances grew by $290 million in the quarter after a reduction in higher-cost brokered deposits of $198 million. So net of brokered funds, client deposit balances are up $488 million or 18% annualized in the quarter. The regional market client deposits rose $185 million, reflecting success in our sales plan to recapture excess funds from existing relationships that had moved to nonbank alternatives earlier in the year as well as our ongoing focus on deposit-heavy new relationships.

現在轉向存款，這在幻燈片 #10 和 11 中進行了細分。在成本較高的經紀存款減少 1.98 億美元之後，本季總餘額增長了 2.9 億美元。因此，扣除經紀資金後，本季客戶存款餘額增加了 4.88 億美元，年化成長率為 18%。區域市場客戶存款增加了1.85 億美元，反映出我們的銷售計劃取得了成功，即從今年早些時候轉移到非銀行替代方案的現有關係中收回多餘資金，以及我們持續關注存款較多的新關係。

Specialized deposits rose by $303 million. This breakdown is highlighted on Slide #12. Within the geographies, we grew client deposits net of brokered balances in each of our major markets, with the exception of New Mexico. This growth generally mirrors the concentration of our C&I client base and was most evident in the Midwest where client balances were up $125 million.

專業存款增加3.03億美元。幻燈片 #12 中突出顯示了這一細分。在這些地區內，我們在每個主要市場（新墨西哥州除外）的客戶存款扣除經紀餘額後均有所增長。這種成長通常反映了我們 C&I 客戶群的集中度，在中西部地區最為明顯，那裡的客戶餘額增加了 1.25 億美元。

In California, representing our West region, client deposits rose by roughly $46 million in the quarter. I think this is a particularly positive sign just given the sensitivity to stress banks in that market, and also another indicator of our success in landing balanced new relationships there.

在代表我們西部地區的加州，本季客戶存款增加了約 4,600 萬美元。我認為，考慮到該市場對壓力銀行的敏感性，這是一個特別積極的信號，也是我們成功在那裡建立平衡的新關係的另一個指標。

The specialized deposit portfolio, which is broken out on Slide 13, also continued its growth trajectory in Q3, now representing 27% of total deposits. There's good balance amongst the lines of business within this book, with property management and third-party escrow driving most of the growth this quarter. Property management continues to be a consolidating industry, which provides opportunity to expand the account base as our clients are generally the larger acquirers.

投影片 13 中詳細介紹的專業存款組合在第三季也延續了成長軌跡，目前佔存款總額的 27%。本書中的業務線之間存在著良好的平衡，物業管理和第三方託管推動了本季的大部分成長。物業管理仍然是一個整合產業，這提供了擴大客戶群的機會，因為我們的客戶通常是較大的收購者。

Slide #14 shows some additional detail on our core funding mix and account activity for the quarter. Deposits are generally balanced among our 4 main channels and anchored to client relationships that have an assigned team or a key point of contact within our company. These deposits are also well diversified by industry, by household and by geographic market. The underlying account activity also continues to trend favorably with new accounts open, exceeding closed accounts and average balances stable to increasing across all channels.

投影片 #14 顯示了有關我們本季核心資金組合和帳戶活動的一些其他詳細資訊。存款通常在我們的 4 個主要管道之間保持平衡，並與我們公司內擁有指定團隊或關鍵聯絡人的客戶關係掛鉤。這些存款也按行業、家庭和地理市場進行了很好的多元化。基礎帳戶活動也持續呈現良好趨勢，新開戶數量超過已關閉帳戶，所有管道的平均餘額穩定成長。

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. My comments begin on Slide 15, where we reported earnings per share of $1.17 in the third quarter on net income of $45 million.

謝謝斯科特，大家早安。我的評論從幻燈片 15 開始，我們報告第三季每股收益為 1.17 美元，淨利潤為 4500 萬美元。

Net interest income expanded from the linked quarter as we have continued to focus on growing and defended net interest income. Our disciplined pricing on loans and deposits, combined with improved customer funding benefited our results. A decline in fee income offset the growth in net interest income during the quarter, and we had a few moving parts in this area that I'll touch on in a few minutes.

由於我們持續專注於成長和捍衛淨利息收入，淨利息收入較上一季擴大。我們嚴格的貸款和存款定價，加上客戶資金的改善，使我們的業績受益。費用收入的下降抵消了本季淨利息收入的成長，我們在這個領域有一些變化，我將在幾分鐘後談到。

The provision for credit losses increased for the quarter, driven by net charge-offs, an increase in nonperforming loans and loan growth. Finally, noninterest expense was higher in the current quarter with continued growth in deposit costs to support our expanding specialized deposit business. Overall, pre-provision net revenue of $65 million for the quarter shows the strength of our earnings profile and our ability to generate capital to support balance sheet growth.

由於淨沖銷、不良貸款增加和貸款成長，本季信貸損失撥備有所增加。最後，本季非利息支出較高，存款成本持續成長，以支持我們不斷擴大的專業存款業務。總體而言，本季預備淨收入為 6,500 萬美元，顯示了我們獲利狀況的實力以及我們創造資本支持資產負債表成長的能力。

Turning to Slide 16. Net interest income for the third quarter of 2023 was $141.6 million, an increase of nearly $1 million compared to the linked quarter. We're pleased with the growth of net interest income in the quarter as it reflects balance sheet growth amid improving the proportion of the balance sheet that has been customer funded since the last quarter.

轉向投影片 16。2023 年第三季的淨利息收入為 1.416 億美元，比上一季增加近 100 萬美元。我們對本季淨利息收入的成長感到滿意，因為它反映了資產負債表的成長，自上季以來客戶資助的資產負債表比例有所提高。

Interest income increased $13 million during the third quarter of 2023, driven equally by continued loan growth and higher rates on the loan portfolio. Additionally, our success in generating customer funding, improved cash levels due to the timing of maturing brokered CDs and added roughly $2 million to interest income.

2023 年第三季度，利息收入增加了 1,300 萬美元，這同樣受到貸款持續成長和貸款組合利率上升的推動。此外，我們成功地籌集了客戶資金，由於經紀 CD 的到期時間而提高了現金水平，並增加了約 200 萬美元的利息收入。

With that said, our lending pricing and the structure of the loan portfolio continues to shine. Loan yields increased 16 basis points, while average balances were up over $230 million. The average interest rate of new loan originations in the third quarter of 2023 was 7.89% and the most recent month yield is just under 7% overall. More details on this are on Slide 17.

儘管如此，我們的貸款定價和貸款組合結構仍繼續表現出色。貸款收益率增加 16 個基點，平均餘額增加超過 2.3 億美元。 2023年第三季新發放貸款的平均利率為7.89%，最近一個月的整體收益率略低於7%。更多詳細資訊請參閱投影片 17。

Interest income in the quarter was more than sufficient to absorb the $12 million increase we experienced in interest expense. We were able to grow customer deposits nearly $500 million during the quarter, which allowed for the previously mentioned decrease in broker funding.

本季的利息收入足以吸收利息支出增加的 1,200 萬美元。本季我們的客戶存款增加了近 5 億美元，這使得前面提到的經紀商資金減少成為可能。

The balance growth was coupled with a 38 basis point increase in the cost of deposits, principally driven by commercial accounts. With that said, total cost of deposits was 1.84% in the third quarter and is approximately 2% in the most recent months.

餘額成長伴隨著存款成本增加 38 個基點，這主要是由商業帳戶推動的。儘管如此，第三季的總存款成本為 1.84%，最近幾個月約為 2%。

The deposit pricing performance is aided overall by DDA percentage at 33%, while our asset yield and balance sheet growth more than paid for the increase in the cost of our liabilities in the third quarter. The resulting net interest margin was 4.33% in the third quarter of 2023, decreasing 16 basis points sequentially.

存款定價表現總體上得益於 33% 的 DDA 百分比，而我們的資產收益率和資產負債表增長超過了第三季度負債成本的增加。 2023年第三季淨利差為4.33%，季減16個基點。

Most notably, we believe that we are seeing stabilization in net interest margin, at least that's been accurate for the last couple of months. When I say that, I mean notably that deposit pricing is becoming more predictable. We are expecting continued net interest margin drift rather than contraction in the fourth quarter of 2023 and early quarters of 2024.

最值得注意的是，我們認為淨利差正在穩定，至少在過去幾個月是準確的。當我這麼說時，我的意思是存款定價變得更可預測。我們預計 2023 年第四季和 2024 年初季度淨利差將持續漂移而不是收縮。

We're encouraged by both deposit generation and the overall performance of net interest income and margin, and we're growing optimistic that with modest growth in net interest income and some slowing in net interest margin compression, that we'll have the opportunity to further expand net interest income growth in the upcoming quarters. It's worth noting that excluding PPP, we have grown net interest income dollars for the last 12 quarters and expanded it by roughly 2.5x during that period.

我們對存款產生以及淨利息收入和利潤率的整體表現感到鼓舞，並且我們越來越樂觀地認為，隨著淨利息收入的適度增長和淨利息利潤率壓縮的放緩，我們將有機會未來幾個季度進一步擴大淨利息收入成長。值得注意的是，不包括購買力平價，我們在過去 12 個季度中實現了淨利息收入成長，並在此期間擴大了約 2.5 倍。

Slide 18 reflects our credit trends. Annualized net charge-offs were 26 basis points of average loans in the period. On a year-to-date basis, net charge-offs were 13 basis points, which continues to be below our historical average. The credit relationship, Jim mentioned, moving into ORE made up the majority of net charge-off balance for the quarter.

幻燈片 18 反映了我們的信貸趨勢。年化淨沖銷額為該期間平均貸款的 26 個基點。今年迄今，淨沖銷為 13 個基點，持續低於我們的歷史平均值。吉姆提到，進入礦石的信貸關係構成了本季淨沖銷餘額的大部分。

It's worth reiterating that this loan represented the only material loan in the investor-owned office portfolio that was supported by a single tenant. Nonperforming assets were 40 basis points of total assets compared to 12 basis points at the end of June. The increase primarily relates to the single credit totaling $6 million in foreclosed assets from the investor owned office property that we charged down in the quarter, and an approximately $30 million increase in commercial real estate loans made up of 3 relationships.

值得重申的是，這筆貸款是投資者擁有的辦公大樓投資組合中唯一由單一租戶支持的重大貸款。不良資產佔總資產的比例為 40 個基點，而 6 月底為 12 個基點。這一增長主要與我們在本季度扣除的投資者擁有的辦公物業中的總計 600 萬美元的止贖資產單項信貸有關，以及由 3 種關係組成的商業房地產貸款增加了約 3000 萬美元。

While we did experience some deterioration in our credit metrics this quarter, we continue to have relatively low levels of [problem] loans. The provision for credit losses was $8 million during the third quarter and largely reflects the impact of the net charge-offs, nonperforming loans and loan growth.

儘管本季我們的信用指標確實有所惡化，但我們的[問題]貸款水準仍然相對較低。第三季的信貸損失撥備為 800 萬美元，主要反映了淨沖銷、不良貸款和貸款成長的影響。

Slide 19 represents the allowance for credit losses. The allowance for credit losses increased $1 million in the quarter and is 1.34% of total loans or 1.47% when adjusting for guarantees.

投影片 19 代表信用損失準備金。本季信貸損失準備金增加了 100 萬美元，佔貸款總額的 1.34%，擔保調整後為 1.47%。

On Slide 20, third quarter fee income of $12 million was a decrease of $2 million from the second quarter. Income from community development investments decreased, as was anticipated, which was mostly offset by recognized gains from the sale of roughly $33 million of SBA loans, which occurred in the third quarter. Tax credit income was the largest driver of the sequential decline in fee income as a 70 basis point increase in the 10-year SOFR rate in the quarter negatively impacted the credits that are carried at fair value and masked the strong transaction volumes in the period.

在投影片 20 上，第三季的費用收入為 1,200 萬美元，比第二季減少了 200 萬美元。如預期，社區發展投資收入有所下降，但大部分被第三季出售約 3,300 萬美元 SBA 貸款的確認收益所抵銷。稅收抵免收入是費用收入連續下降的最大驅動因素，因為本季10 年期SOFR 利率上升70 個基點，對以公允價值計量的抵免額產生了負面影響，並掩蓋了該期間強勁的交易量。

As a reminder, tax credit income has been -- has some seasonal volatility and is typically strongest at the end of each year, and thus, we expect fourth quarter fee income to be roughly $15 million to $17 million.

提醒一下，稅收抵免收入一直存在一些季節性波動，通常在每年年底最為強勁，因此，我們預計第四季度的費用收入約為 1500 萬至 1700 萬美元。

Turning to Slide 21. Third quarter noninterest expense was $89 million, an increase of $3 million compared to the second quarter. Deposit service expenses were higher which was partially mitigated by a sequential decline in employee compensation and benefits as well as other expenses.

轉向幻燈片 21。第三季非利息支出為 8,900 萬美元，比第二季增加 300 萬美元。存款服務費用較高，但員工薪資和福利以及其他費用的連續下降部分緩解了這種影響。

Deposit servicing expenses grew roughly $4 million in the quarter due to both rate and volume on certain specialized deposits. We expect this line item to continue to expand with both continued growth in balances as well as higher rates, but at a decreasing rate, at least as it relates to increased pricing. We do expect specialized deposits to continue to outpace overall deposit growth, which we will continue to drive this expense line item.

由於某些專門存款的利率和數量，本季存款服務費用增加了約 400 萬美元。我們預計該訂單項將隨著餘額的持續成長和費率的提高而繼續擴大，但成長速度會下降，至少因為它與定價上漲有關。我們確實預計專業存款將繼續超過整體存款成長，我們將繼續推動這項費用項目。

Comp and benefits was lower in the quarter-over-quarter due to favorable medical plan performance combined with hiring discipline. Other expenses were lower sequentially, primarily from the non-recurrence of the operational event in the second quarter as well as certain other expenses. Overall, we expect noninterest expense to increase to roughly $90 million to $92 million in the fourth quarter, reflecting an increase in deposit service expense.

由於良好的醫療計劃績效以及招聘紀律，季度薪資和福利有所下降。其他費用則是環比下降，主要是由於第二季未再次發生營運事件以及某些其他費用。總體而言，我們預計第四季非利息支出將增加至約 9,000 萬至 9,200 萬美元，反映出存款服務支出的增加。

The third quarter's core efficiency was 56.2%, an increase of 220 basis points compared to the second quarter and was driven primarily by the rise in both interest and noninterest expenses, while the decrease in fee income impacted revenues. With some moderation of our net interest margin and net interest income expectations, we do expect core efficiency to move up slightly in the coming quarters. However, this is a function of our expectation for expanding our market share in the specialized deposit business. For all other expense categories, we expect to prudently maintain cost controls, which are part of our daily discipline.

第三季核心效率為56.2%，較第二季成長220個基點，主要是由於利息和非利息支出的成長，而手續費收入的下降影響了收入。隨著我們的淨利差和淨利息收入預期有所放緩，我們確實預計未來幾季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。對於所有其他費用類別，我們希望謹慎維持成本控制，這是我們日常紀律的一部分。

Our capital metrics are demonstrated on Slide 22. Our tangible common equity ratio was 8.5% at the end of the third quarter, down from 0.6% in the linked quarter. The decline is due to the increase in longer-term interest rates and the related impact on the fair value of securities and derivatives that are reflected in comprehensive income.

我們的資本指標如投影片 22 所示。第三季末，我們的有形普通股比率為 8.5%，低於上一季的 0.6%。下降的原因是長期利率上升以及對綜合收益中反映的證券和衍生品公允價值的相關影響。

Our regulatory capital ratios continue to be above well-capitalized minimums when including the impact of unrealized losses on available for sale and held to maturity securities. Our strong earnings and manageable dividend level allows us to quickly build capital that we can use to support our growth.

考慮到可供出售和持有至到期證券的未實現損失的影響，我們的監管資本比率繼續高於資本充足的最低水準。我們強勁的獲利和可控的股息水準使我們能夠快速累積資本，用於支持我們的成長。

And overall, this was a strong quarter, and we've been pleased with the performance so far this year. Return on assets has been 1.47% and return on tangible common equity is nearly 17%. With that, I'll conclude my remarks and open the line for analyst questions.

總的來說，這是一個強勁的季度，我們對今年迄今為止的表現感到滿意。資產報酬率為1.47%，有形普通股報酬率接近17%。至此，我將結束我的發言並開始回答分析師問題。

(Operator Instructions) Your first question is from 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。

Just a couple of follow-up questions on the deposit base that's impacted by the variable deposit costs. I just want to try to get a sense for, is that the entire specialty loan or specialty deposit balance, or is it a portion of that?

只是關於受可變存款成本影響的存款基礎的幾個後續問題。我只是想了解一下，這是全部專業貸款或專業存款餘額，還是其中的一部分？

If you look at Slide 13, it's really going to be community property and third-party. So it's roughly $2.5 billion that the $21 million in the quarter is attributable to.

如果你看一下投影片 13，它確實是社群財產和第三方的。因此，本季的 2,100 萬美元歸因於約 25 億美元。

The other is really more part of what's assigned based on specialized lending verticals. So that's how that's delineated.

另一個實際上更多的是根據專業貸款垂直領域分配的內容。這就是它的描述方式。

So just want to kind of walk down the strategy again. Just -- these are maybe accretive to net interest margin. But on the expense side, certainly there's been a source of cost increase. Could you just sort of lay out the strategy of that? Overall, it's a more efficient deposit, franchise is stickier. Just want to kind of get a sense for the cost and the value of that relative to traditional deposits?

所以只想再次執行該策略。只是——這些可能會增加淨利差。但在費用方面，成本增加肯定是有原因的。您能列出一下策略嗎？總體而言，這是一種更有效的存款，特許經營更具黏性。只是想了解相對於傳統存款的成本和價值嗎？

Yes. Let me tackle that and then Scott and Keene can certainly join in. So I look at it this way, it blends well with our overall deposit base. If you think about how we built the business and the franchise carefully with commercial and business banking and consumer and the specialized blends in nicely. It's very stable deposit base. Largely an insured deposit base, and it does come in with some nice chunks and we've done some great work relative to the areas, especially in the property management in the last year to pick up great clients that were somewhat orphaned by those who are no longer around.

是的。讓我解決這個問題，然後斯科特和基恩當然可以加入。所以我這樣看，它與我們的整體存款基礎很好地融合。如果你想想我們如何仔細建立業務和特許經營權，與商業和商業銀行以及消費者和專業人士很好地融合在一起。這是非常穩定的存款基礎。很大程度上是一個受保存款基礎，它確實帶來了一些不錯的資金，我們在這些領域做了一些出色的工作，特別是去年在物業管理方面，以吸引那些被那些在某種程度上成為孤兒的優秀客戶。不再在身邊。

And so we feel as we go forward, it blends well with everything, and certainly too much of a good thing is too much of a good thing. But as we see it, it's allowed us to reduce reliance on brokered CDs and yet maintain a very healthy return profile.

因此，我們覺得，當我們前進時，它與一切都很好地融合在一起，當然，太多的好事就是太多的好事。但正如我們所看到的，它使我們能夠減少對經紀 CD 的依賴，同時保持非常健康的回報狀況。

Is there a limit that you -- too much of a good thing? Do you say, "Hey, we want to cap this at a certain percent right now with an elevated broker and running it off" and it [seems] appropriate…?

你是否有一個限度──好事太多了？您是否會說，“嘿，我們現在想通過一位高級經紀人將其限制在一定百分比，然後將其運行掉”，這[似乎]合適……？

So we look at it this way. So we look at -- carefully, we look at our growth for '24 and beyond. And you know us too. We're not a [spigot] on spigot off business, right? We're going to support a particular segment well, but we're not going to do it to a point that it's harmful to the company.

所以我們這樣看。因此，我們仔細地審視 24 年及以後的成長情況。你也認識我們。我們不是生意上的[龍頭]，對吧？我們將很好地支援某個特定的細分市場，但我們不會這樣做到對公司有害的程度。

And so I look at it this way that if they're -- behind that deposit is an entity that is a long-lived client in any great environment, we're going to support that. And we're just going to have to figure out ways with respect to that blended into our overall deposit base to make a great return. And so we look at the overall growth for '24 and '25. And to the extent that we could fund all of that confidently without leaning into specialized deposits, likely we would, but we're not going to be able to -- So it's going to be an important part of our overall growth going forward. But at this point in time, I'm not willing to put a cap on what that's going to be.

所以我這樣看待它，如果他們的存款背後是一個在任何良好環境下都是長期客戶的實體，我們就會支持這一點。我們必須想辦法將其融入我們的整體存款基礎中，以獲得豐厚的回報。因此，我們關注 24 年和 25 年的整體成長。在某種程度上，我們可以自信地為所有這些提供資金，而無需依賴專門存款，我們可能會這樣做，但我們無法做到——因此，這將成為我們未來整體成長的重要組成部分。但在這個時候，我不願意為未來的情況設定上限。

And Keene, kind of baked into that expense guidance you're alluding to, continue to expand deposit costs there, but it may be at a diminishing level. And you can give us overall deposit -- excuse me, overall noninterest expense? Anything to guide us on how to model that ahead? Is there a percent of those deposits? Or -- I guess that's variable, but any thoughts on how to model it?

基恩，有點融入了你提到的費用指導，繼續擴大那裡的存款成本，但可能會處於遞減的水平。您可以給我們整體存款－請問，總體非利息費用嗎？有什麼可以指導我們如何提前建模嗎？這些存款有百分比嗎？或者——我想這是可變的，但是對如何建模有什麼想法嗎？

Yes. Let me just -- let me give you a couple of pieces of information that I sort of think about high level and maybe this is helpful and you can either follow up or tell me it's not helpful. So in the second quarter, the $17 million on roughly $2.2 billion of deposits was like a 3% relative cost. In the current quarter, you're at like [$3.35 billion] with $21 million on $2.5 billion.

是的。讓我——讓我給你一些我認為高層次的信息，也許這有幫助，你可以跟進或告訴我這沒有幫助。因此，在第二季度，大約 22 億美元的存款中的 1,700 萬美元相當於 3% 的相對成本。在本季度，您的營收約為 [33.5 億美元]，其中 25 億美元為 2,100 萬美元。

So when you look at $4 million sequentially, we estimate that roughly half was due to rate and pricing and competitive pressures and us really trying to drive down the brokered, and then the other half was really due to growth in the underlying balances of a few hundred million.

因此，當你連續查看 400 萬美元時，我們估計大約一半是由於費率、定價和競爭壓力，而我們確實試圖壓低經紀費用，而另一半實際上是由於一些基礎餘額的增長。

So I think, obviously, you've got some blending in there in the quarter, but if you took [$3.50 billion] and said that's your kind of current earnings credit -- and we're, I think viewing it as absent more activity by the Fed that -- the competition in that space should come down with some of what we're seeing in the industry. We've been very fair to those customers, and we really think that -- moving forward, that the majority of the expense is going to be driven by volumes. So I think from my perspective that will be a way to kind of think about how we're at least thinking about the fourth quarter and maybe the first quarter.

因此，我認為，顯然，本季度你已經進行了一些混合，但如果你拿[35億美元]並說這是你當前的收益信用——我認為我們將其視為缺乏更多活動美聯儲認為，該領域的競爭應該會像我們在該行業中看到的一些情況一樣減少。我們對這些客戶非常公平，而且我們確實認為，展望未來，大部分費用將由銷售驅動。因此，我認為從我的角度來看，這將是一種思考我們至少如何思考第四季甚至第一季的方式。

And then I think you made some comments earlier to Jim and in terms of the efficiency of the business -- and we look at this, if you stack it up versus peers, our margins near the top of the stack and efficiency sort of in the top third, as it's reported today. But if you re-class these deposit costs, margin would maybe be in the sort of top 10% or 15%, but efficiency would go right to the top of the chart at roughly 50% in the quarter and lower than that, and then the 40% year-to-date.

然後我想你早些時候向吉姆提出了一些關於業務效率的評論——我們會考慮這一點，如果你將其與同行相比，我們的利潤率接近頂部，效率也處於領先水平。正如今天報道的那樣，排名第三。但如果你重新分類這些存款成本，利潤率可能會排在前 10% 或 15% 左右，但效率將直接躍居圖表頂部，本季約為 50%，甚至更低，然後今年迄今為止的40% 。

So to Jim's point on returns, I mean, I think if we look at it that way and you just sort of do some with and without, it helps you really characterize how efficient we are truly being in the business and where we stack up. Obviously, we wouldn't -- we don't necessarily publish those results because it belongs in noninterest expense, but just a way for us to gauge what it would be if that was just truly a commercial deposit and we were paying an interest rate on it.

因此，對於吉姆關於回報的觀點，我的意思是，我認為如果我們以這種方式看待它，並且您只是做一些有或沒有的事情，它可以幫助您真正了解我們在業務中的真正效率以及我們的表現。顯然，我們不會——我們不一定會公佈這些結果，因為它屬於非利息支出，但這只是我們衡量如果這只是真正的商業存款並且我們支付利率的話會是什麼樣子的一種方法在上面。

Yes, second guessing, just trying to get a better handle on it. So I appreciate the detail. Maybe just one other topic. Just on the loan front, and Jim, I think you mentioned it's kind of mid-single digit. I just wanted to make sure that's sort of net of -- well, one, I don't -- to be embedded in that as -- do you anticipate more SBA loan sales? And would that mid-single-digit include -- is that net of expected sales or what…?

是的，再次猜測，只是想更好地處理它。所以我很欣賞細節。也許只是另一個話題。就貸款而言，吉姆，我想你提到過它是中等個位數。我只是想確保這在某種程度上是——嗯，一個，我不——嵌入其中，因為——你預計會有更多的 SBA 貸款銷售嗎？這個中個位數是否包括──是扣除預期銷售額還是什麼…？

Yes, that would be net of that. That's what we're predicting. And part of it is not having a whole lot of faith that the CRE market is going to be significant in the first half of '24. That's why we moderate back to that. So we feel good about that number and being able to do it in a very responsible manner with some high yield there, too.

是的，那就是淨值。這就是我們的預測。部分原因是人們對商業房地產市場在 24 年上半年將發揮重要作用缺乏信心。這就是為什麼我們要溫和地回到這一點。因此，我們對這個數字感到滿意，並且能夠以非常負責任的方式做到這一點，並獲得高收益。

Your next question is from Andrew Liesch of Piper Sandler.

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

Some clarification on the nonperformers here. How long have they been on your radar screen and then look out into the future? And what are you seeing with trends in 30 to 89-day [past dues]?

這裡對錶現不佳者進行一些澄清。它們出現在你的雷達螢幕上多久了，然後展望了未來？您對 30 至 89 天[逾期欠款] 的趨勢有何看法？

Yes. I can take that one. I mean, I think generally, the credit that impacted this quarter represented historically weaker operating companies that had been in the system, in our process for a while. And I think the amount of movement you saw this quarter kind of reflects the intentionally proactive workout strategy that we're trying to take, get to the table early when there's cash to get a pay down, liquidity to get guarantor payments, to get additional collateral, which also pushes them through our process faster.

是的。我可以接受那個。我的意思是，我認為總體而言，影響本季的信貸代表了歷史上經營較弱的公司，這些公司已經在系統中、在我們的流程中一段時間了。我認為本季你看到的變動反映了我們正在嘗試採取的有意主動的運動策略，當有現金可以支付首付款、有流動性以獲得擔保人付款、獲得額外的資金時，儘早開始談判。抵押品，這也推動他們更快完成我們的流程。

I'm happy to provide more color because I think really, the movement, at least in nonperformers, is just related to 3 credits this quarter. There was a $19 million commercial real estate developer leasing company in SoCal, a 19-year -- or a 13-year client of that legacy bank. $16 million of our exposure is actually secured -- adequately secured by margin multifamily collateral. There's really just this smaller unsecured piece which is driving most of the rating, and we're in the process of securing.

我很高興提供更多的色彩，因為我認為實際上，至少在表現不佳的企業中，這項運動僅與本季度的 3 個學分相關。南加州有一家價值 1,900 萬美元的商業房地產開發商租賃公司，是該傳統銀行 19 年或 13 年的客戶。我們的風險敞口中有 1600 萬美元實際上是有擔保的——由保證金多戶家庭抵押品充分擔保。實際上，只有這個較小的無擔保部分推動了大部分收視率，我們正在採取擔保措施。

There's an $8 million Kansas City-based truck dealership. They deal in specially modified commercial box and delivery trucks. And I think we're in the process of exiting that through either a refi or a liquidation, which does include hard assets, owner-occupied commercial real estate. And then $5.5 million Ag credit, which is a hog producer, and they're actually under contract to sell prior to year-end and pay us off. So I think by just pushing those fairly quickly and getting to the table, we've got decent strategies.

堪薩斯城有一家價值 800 萬美元的卡車經銷店。他們經營經過特殊改裝的商用箱車和送貨卡車。我認為我們正在透過再融資或清算來退出，其中確實包括硬資產、業主自用的商業房地產。然後是 550 萬美元的農業信貸，這是一家生豬生產商，他們實際上簽訂了在年底前出售並償還我們的合約。所以我認為，只要盡快推動這些計劃並進入談判桌，我們就已經制定了不錯的策略。

I think the other question is what do we see? As we try to read the tea leaves, I think the major comment is we're not seeing signs that this is part of a bigger wave at this point. Total criticized loans, if you take classifieds plus the next level of special mention, we're actually down $60 million this quarter versus last quarter. So we've exited some of those credits. We've upgraded others.

我認為另一個問題是我們看到了什麼？當我們嘗試解讀茶葉時，我認為主要的評論是我們沒有看到任何跡象表明這是目前更大浪潮的一部分。受批評的貸款總額，如果您考慮分類廣告加上下一級別的特別提及，我們本季實際上比上個季度減少了 6000 萬美元。所以我們已經退出了其中一些積分。我們已經升級了其他人。

Other trends that we look at, past dues are actually down versus the prior quarter. And we're not seeing abnormally high activity on things like covenant breaks or additional downgrades. So you just look at classifieds and nonperformers at the levels they're at today, it's really similar to what we saw pre-pandemic 2019 and prior. So hopefully, that provides a little bit of color.

我們看到的其他趨勢是，逾期未付款項實際上比上一季下降。我們沒有看到諸如契約破裂或額外降級之類的異常高的活動。所以你只要看看分類廣告和表現不佳的廣告現在的水平，這與我們在 2019 年大流行前及之前看到的情況非常相似。希望這能提供一點色彩。

Yes, absolutely. And obviously, we saw the increase, but I mean, still at a very low level here. And actually looking at -- you touched on pretty much some of the other questions. So I'm in good shape. I'll step back here.

是的，一點沒錯。顯然，我們看到了成長，但我的意思是，這裡仍然處於非常低的水平。實際上，您幾乎觸及了其他一些問題。所以我的狀態很好。我會退到這裡。

Your next question is from Damon DelMonte of KBW.

您的下一個問題來自 KBW 的 Damon DelMonte。

Just wanted to start off with a question on the outlook for fee income regarding the tax credit line item. Can you break down how much of the $2.7 million loss was rate related versus realized gains during the quarter?

只是想先詢問有關稅收抵免項目的費用收入前景的問題。您能否詳細說明 270 萬美元的損失中有多少是與利率相關的，與該季度已實現的收益有多少相關？

Yes. I would say that, Damon, based on the net, the rate-related loss was like 300% of what was posted. So there was good activity in the quarter, as I noted, but with what's carried at fair value, and how much SOFR move, we just weren't able to really withstand that.

是的。我想說的是，Damon，根據網絡，與利率相關的損失大約是發布的損失的 300%。因此，正如我所指出的，本季度的活動很好，但考慮到以公允價值計算的內容以及 SOFR 的變動幅度，我們無法真正承受這種情況。

I think we expect some rebound here in the fourth quarter as sort of noted by my total guide. And then, look, if rates are -- don't continue to tick up sort of as hard as they have the last couple of years. The passage of time as well as the business activity will drive better opportunity for next year and maybe that tax credit line item will be able to get to, call it, 7 or 8 figures again for 2024 with just some stability returning.

我認為我們預計第四季度會出現一些反彈，正如我的整體指南所指出的那樣。然後，看看，如果利率不會像過去幾年那樣繼續上漲。時間的流逝以及商業活動將為明年帶來更好的機會，也許稅收抵免計畫將能夠在 2024 年再次達到 7 或 8 位數，只是恢復一些穩定性。

So that 7 or 8-figure number for '24, the cadence of that, is it kind of more realizations in the first and fourth quarters and the second and third, or usually seasonally weak. Is that right?

因此，24 年的 7 或 8 位數數字，其節奏，是在第一季度和第四季度以及第二季度和第三季度實現更多的實現，或者通常是季節性疲軟。是對的嗎？

Yes. I mean, some of it is probably going to be a little bit dependent on what happens with rate. I would still expect it to be driven largely in the fourth quarter just by nature of how the business occurs, with some of the turbulence and some of the business climate issues. I mean, we've been trying to circulate some of those credits and bulk sale them, and that may somewhat affect timing, but I would still expect it to be maybe a little bit here in the first quarter if rates don't [mess] with us and then back-end loaded for the fourth quarter of '24.

是的。我的意思是，其中一些可能會有點取決於利率的變化。我仍然預計第四季度的成長將主要取決於業務發生的性質，以及一些動盪和一些商業環境問題。我的意思是，我們一直在嘗試流通其中一些積分並批量出售它們，這可能會在一定程度上影響時間安排，但我仍然預計，如果利率不[混亂]，第一季度可能會有點影響。 ]與我們一起，然後在24 年第四季度進行後端加載。

And then with regards to the margin outlook, and I think you commented that you expect somewhat continued drift here from this quarter's level. Can you kind of put some bookends around that? I mean, do you think maybe like 5 to 10 basis points of drift over the next couple of quarters is reasonable before bottoming?

然後關於利潤率前景，我認為您評論說，您預計本季的水平將繼續出現偏差。你能在它周圍放一些書立嗎？我的意思是，您認為在觸底之前未來幾個季度 5 到 10 個基點的漂移是否合理？

Yes. And I would just say I don't -- I think -- we think that we can get to largely level net interest income in the quarter here. I mean, I think there was some inefficiency and there probably will still be some inefficiency in the balance sheet composition because we use brokered CDs to really fund a lot of the growth in the first and second quarter.

是的。我只想說，我不認為——我認為——我們認為我們可以在本季基本維持淨利息收入水準。我的意思是，我認為存在一些效率低下的情況，而且資產負債表的組成可能仍然存在一些效率低下的情況，因為我們使用經紀CD來真正為第一季度和第二季度的大量增長提供資金。

So my comments are sort of notwithstanding balance sheet composition, just similar level at [$9.30 billion], but yes. I mean, I think we've got, call it, 3 or 5 basis points of drifts. And as I say that -- it sounds ridiculous that in this environment, I'm guiding 3 to 5 basis points, but -- in each of the next couple of quarters is what we're thinking. And then we start to have day count in our favor going from 1Q to 2Q and maybe there's a chance that we can start to grow net interest income again.

因此，我的評論是儘管資產負債表的組成與[93億美元]的水平相似，但是是的。我的意思是，我認為我們已經有 3 或 5 個基點的漂移。正如我所說，在這種環境下，我指導 3 到 5 個基點，這聽起來很荒謬，但是，在接下來的幾個季度中，我們正在考慮這一點。然後，從第一季到第二季度，我們的日子開始變得有利，也許我們有機會再次開始增加淨利息收入。

But we are definitely seeing some stabilization and the last couple of months have been much more stable than they were. And in fact, September was a little bit higher than August, but 1 month isn't a trend, and there's a lot of pieces that drive that. But we're definitely feeling better about it, and we're seeing slowing in cumulative [betas] even though we expect some continued degradation in the next couple of quarters at the minimum.

但我們確實看到了一些穩定，並且過去幾個月比以前穩定得多。事實上，9 月比 8 月略高，但 1 個月並不是一種趨勢，有很多因素推動這一趨勢。但我們肯定對此感覺更好，我們看到累積貝塔值正在放緩，儘管我們預計未來幾季至少會持續下降。

And then kind of on the flip side with rates here, if the Fed does cut in the back half of '24 -- I know you guys are pretty asset sensitive. So how do you kind of envision the margin reaction if there is some cuts that happen again in the back half of 2024?

另一方面，如果聯準會確實在 24 年下半年降息，那麼利率方面的情況則相反——我知道你們對資產非常敏感。那麼，如果 2024 年下半年再次出現一些削減，您如何看待利潤率反應？

Yes, I mean -- when you say rate cuts, I mean, I think of that as 25. I mean, I think our view is generally that we expect higher for longer to mean just really stable Fed funds and what we'll be fighting is largely compression. But down 100, we're about 4% asset-sensitive. So 25 basis point cut is 1% on an annualized basis, and that will come pretty immediately. I don't worry as much we -- Jeff had pushed on the deposit -- specialized deposit costs. We think that those can move very much in line with any Fed funds cuts.

是的，我的意思是——當你說降息時，我的意思是，我認為降息是25。我的意思是，我認為我們的觀點總體上是，我們預計利率會在更長時間內保持較高水平，這意味著聯邦基金非常穩定，我們將成為戰鬥很大程度上是壓縮的。但如果下降 100，我們的資產敏感度大約是 4%。因此，以年率計算，降息 25 個基點相當於 1%，而且降息很快就會發生。我不太擔心我們——傑夫推動的存款——專門的存款成本。我們認為，這些變化可能與聯準會削減資金的情況非常一致。

I think what we're maybe the most concerned about is if variable rate proceed or predict on a short-term basis the Fed funds cut because that's where we get the most compression. But just sort of assuming everything is kind of normally timed, we're sort of down roughly 1% on a cut, and we think that, that's generally an area where we can on a longer-term basis outgrow that as long as we don't have rapid 25 basis points cuts quarter-after-quarter.

我認為我們最關心的可能是浮動利率是否繼續或在短期內預測聯邦基金削減，因為這是我們受到最大壓縮的地方。但假設一切都按正常時間進行，我們的削減幅度大約為 1%，我們認為，從長遠來看，只要我們不這樣做，這通常是一個我們可以超越的領域。不會逐季快速降息25 個基點。

Your next question is from Brian Martin of Janney.

您的下一個問題來自 Janney 的 Brian Martin。

Keene, just one last one on the margin. So it sounds like the margin maybe bottoms next quarter or first quarter is kind of -- I heard the comments on NII, flat and then maybe down a little bit with the day count, but on the margin percentage, the drift is -- the next couple of quarters if we're kind of stable from a Fed environment?

基恩，只是邊緣的最後一球。因此，聽起來利潤率可能會在下個季度或第一季觸底——我聽到了有關NII 的評論，持平，然後可能隨著天數的增加而下降一點，但就利潤率百分比而言，變化是——接下來的幾季我們是否會在聯準會的環境下保持穩定？

Yes. I will just say this, I mean, we're really thinking about it on a net interest income dollars basis because we've got a weighted average life of 8 months on the broker portfolio, and we're trying to make it a priority to really get that largely paid down. So you could get 2, 3, 4, 5 basis points just from an efficient balance sheet, lower risk but inefficient. And I don't want to just be too firm on that. But we generally feel like margin is getting firmer, but still drifting and call it, sometime in the first half of next year, we're starting to feel better about it.

是的。我只想說這一點，我的意思是，我們確實是在淨利息收入美元的基礎上考慮的，因為我們的經紀人投資組合的加權平均壽命為 8 個月，我們正在努力將其作為優先事項真正得到大部分回報。因此，您可以從有效的資產負債表中獲得 2、3、4、5 個基點，風險較低，但效率低。我不想對此過於堅定。但我們普遍認為利潤率正在變得更加堅挺，但仍然在漂移，並且稱其為明年上半年的某個時候，我們開始對此感覺更好。

And I think if we're able to get good decent loan growth in that period, I think we're optimistic that we can stabilize profitability and then start to grow in the back half. But yes, I think, call it -- you get some weird day count stuff going on. So you could kind of see first quarter margin better than fourth quarter depending on what happens, but then it deteriorates in the second quarter just with some of that [33, 63, 65] stuff on the portfolio.

我認為，如果我們能夠在此期間獲得良好的貸款成長，我認為我們樂觀地認為我們可以穩定獲利能力，然後在下半年開始成長。但是，是的，我想，就這樣吧——你會遇到一些奇怪的日數統計問題。因此，根據發生的情況，您可能會看到第一季的利潤率好於第四季度，但第二季度的利潤率會因投資組合中的一些 [33, 63, 65] 內容而惡化。

And then how about just on the -- I think -- I don't know if maybe someone answered that, but the -- on the SBA gains this quarter with the sales, do you guys expect to do more of that? Or is that -- you haven't done it up until now. So just kind of wondering how to think about that with your commentary on fee income?

然後，關於——我想——我不知道是否有人回答了這個問題，但是——關於本季 SBA 的銷售收益，你們預計會做更多這樣的事情嗎？或者是——到目前為止你還沒有做到這一點。所以只是想知道如何看待您對費用收入的評論？

Yes. I would say, Brian, the reason we did it this quarter is we -- with the strong growth we had in the second quarter, we started looking at how to fund everything and what we thought was important to investors, and we thought kind of growing net customer funding relative to loan growth was important. It's a highly saleable class of assets, and we have the opportunity to clear some headway there and sell some of the recent production.

是的。我想說，布萊恩，我們本季這樣做的原因是，隨著第二季度的強勁增長，我們開始考慮如何為一切提供資金以及我們認為對投資者重要的內容，我們認為相對於貸款增長而言，客戶淨融資的成長非常重要。這是一類非常暢銷的資產，我們有機會在這方面取得一些進展並出售一些最近生產的產品。

With fourth quarter being what we would expect to be seasonally strong, I wouldn't expect fourth quarter SBA sales, but I would say that depending on how growth looks in the early part of next year and how the fee line items look, we -- and overall funding and costs are shaping up, we view that as a play option, and we may do it, but we'd likely be sensitive to when we get some of the other periodic impacts from private equity, CDE, tax credit and those types of businesses.

由於我們預計第四季度將出現季節性強勁，我預計第四季度 SBA 銷售額不會增加，但我想說，這取決於明年初的增長情況以及費用項目的情況，我們 - - 總體資金和成本正在形成，我們認為這是一種選擇，我們可能會這樣做，但我們可能會對私募股權、CDE、稅收抵免和其他定期影響感到敏感這些類型的企業。

So just kind of helps smooth out some of the volatility within the quarters.

因此，這有助於消除季度內的一些波動。

Yes, potentially. Now look, if we're growing deposits well and there's no pressure really on the funding growth, I mean, I think the best strategy versus cash is to keep those loans on the balance sheet with their profile. But if you're trading off high -- other high-yield loans that you're maybe not doing because you're -- you want to make sure that you're hitting the right funding profile, then I think that, that becomes a much more viable option. So we'll continue to advise you on that, but it's certainly more on the forefront and something that I'd say is equally weighted 50-50 versus maybe not coming into this year.

是的，有可能。現在看，如果我們的存款成長良好，並且資金成長確實沒有壓力，我的意思是，我認為相對於現金的最佳策略是將這些貸款保留在資產負債表上。但是，如果你正在權衡其他高收益貸款，而你可能沒有這樣做，因為你想確保你達到了正確的融資狀況，那麼我認為，這就變成了一個更可行的選擇。因此，我們將繼續就此向您提供建議，但它肯定更重要，我想說的是，與今年可能不會出現的情況相比，它的權重同樣為 50-50。

And just last 2 on the expense side, Keene, you talked about the deposit cost. Just in general, what do you -- those sound like they're up a bit more 4Q and then maybe they begin to kind of -- the pace of increase lessens. But just as far as the other -- if that's right? And then the other -- how are you thinking about increases elsewhere, just inflationary, as we look into next year for kind of the comp line, just collectively the other lines?

就在費用方面的最後 2 點，基恩，您談到了押金成本。總的來說，你怎麼看——聽起來他們在第四季度上漲了一點，然後也許他們開始有點——增長的步伐放緩了。但就另一個而言——如果這是正確的呢？然後另一個 - 當我們展望明年的補償線時，您如何考慮其他地方的成長，只是通貨膨脹？

Yes. I would say, Brian, that we're trying to be very, very thoughtful about managing both the short and the intermediate term. So we don't want to do things that impair the business. I think you heard from Scott, we hired a new President in our San Diego region and some of those things. And so we're going to continue to make the right long-term move. We're going to continue to invest in our associates and technology and training. But we're mindful of the -- sort of the operating leverage that we've lost here along the last couple of quarters. And we're trying to manage it the best we can.

是的。布萊恩，我想說，我們正在努力非常非常周到地管理短期和中期。所以我們不想做有損業務的事情。我想你從斯科特那裡聽到了，我們在聖地亞哥地區聘請了一位新總統以及其中的一些事情。因此，我們將繼續採取正確的長期行動。我們將繼續投資於我們的員工、技術和培訓。但我們注意到過去幾季我們失去的營運槓桿。我們正在盡我們所能管理它。

So we're going to apply the normal discipline. I mean, I think you can see it here from first to second to third quarter that we're being fairly tight on spending. And I think there's some opportunities to pay for what [we'll] call compensation and raises and things like that next year with some discipline on other types of expenses. But we're going to be mindful that we're in a position where even with the provision this quarter we're still earning well and we don't want to just try to hit a number that then ultimately becomes a lower number in future periods because we're not able to grow or we're not able to restart businesses or things like that.

所以我們將採用正常的紀律。我的意思是，我想你可以從第一季到第二季到第三季看到我們的支出相當緊張。我認為明年有一些機會支付[我們]所謂的薪酬和加薪以及類似的費用，並對其他類型的費用進行一些紀律。但我們要注意的是，即使有本季度的撥備，我們的收入仍然不錯，我們不想只是嘗試達到一個數字，但最終在未來會變得更低。因為我們無法成長或無法重新啟動業務或類似的事情。

So I think you heard that from Jim, but I think it bears out on expenses. That's our mantra, and we're really trying to be as disciplined as we can. And maybe that's less adding than we would have in prior periods, but I don't -- we're not -- you're not going to hear from us any big initiatives very likely or anything like that, just continued discipline across the board as much as we can.

所以我想你是從吉姆那裡聽到的，但我認為這在費用上是正確的。這是我們的座右銘，我們確實盡力保持自律。也許這比我們之前的時期增加的要少，但我不——我們不是——你不會從我們那裡聽到任何重大舉措，很可能或類似的事情，只是在整個領域繼續遵守紀律。盡可能多地登機。

And in your comments about the efficiency and kind of adjusting for the deposits, I mean, the [56%] we're at today, that feels like a sustainable level now given kind of what you expect on those deposit cost trends. I mean, I know it's gone up, but when you adjust them, it's obviously much better relative to the peer and industry, but just kind of the efficiency in general, that level we're at, is interest higher from here or is it stable-ish?

在您關於存款調整效率和類型的評論中，我的意思是，我們今天所處的[56%]，考慮到您對這些存款成本趨勢的預期，這感覺像是一個可持續的水平。我的意思是，我知道它上升了，但是當你調整它們時，相對於同行和行業來說，它顯然要好得多，但一般來說，我們所處的水平的效率是從這裡開始的興趣更高還是穩定嗎？

I think it's slightly higher. It's kind of increasing, but at a decreasing rate, just like we expect that line item to behave. I think the rate -- sort of pricing impact on the -- that line of kind of earnings credit rate, I think we don't expect to move as much. And so again, I think it's trended underlying balances and collective balances and things like that, that continues to have that grow over time.

我認為稍微高一點。它有點增加，但速度正在下降，就像我們預期該訂單項目的行為一樣。我認為利率——某種定價對獲利信貸利率的影響——我認為我們預計不會改變那麼多。再說一次，我認為潛在平衡和集體平衡以及類似的趨勢是隨著時間的推移而繼續增長的。

And I think part of it is just how quickly can we get margin to sort of -- or net interest income -- I guess, say, trying to direct away from margin, net interest income to sort of stabilize and build off that base. And I think that obviously is a big driver for what happened. I mean I think we would have had -- we would have really loved to have that tax credit line item be 0 or slightly positive. The quarter would have looked a lot different on a pre-provision and on an operating revenue basis. But that's life, and that'll come back to us over time.

我認為部分原因在於我們能夠多快地獲得保證金或淨利息收入，我想，比如說，試圖擺脫保證金、淨利息收入，以穩定並建立這一基礎。我認為這顯然是發生這種情況的一個重要推動因素。我的意思是，我認為我們確實希望稅收抵免項目為 0 或略為正值。從預撥備和營業收入的角度來看，這個季度看起來會大不相同。但這就是生活，隨著時間的推移，它會回到我們身邊。

And last one, if I could sneak it, and maybe just for Scott. The utilization in the quarter was down a lot. I guess, do you expect that to continue to trend a bit lower? Does that feel like we're kind of getting to a bottom? Just wondering what you think on the utilization side relative to your comments on -- Jim's comments on loan growth, kind of still feeling comfortable pretty healthy loan growth?

最後一個，如果我能偷偷看的話，也許只是為了史考特。本季的利用率大幅下降。我想，您預計這數字會繼續走低嗎？是不是感覺我們已經觸底了？只是想知道您對利用率方面的看法，相對於您對吉姆對貸款增長的評論的看法，您仍然對相當健康的貸款增長感到滿意嗎？

Yes, I agree. I think it's more of just how existing clients are opting to use their existing cash. I don't think it's going to be an ongoing pressure point. I think if you just look historically, it's kind of up and down, but within a pretty narrow range of 2% or 3%. So I think it's just a function of what happened this quarter. I don't think it's going to impair the business long term.

是的我同意。我認為這更多的是現有客戶選擇如何使用現有現金。我認為這不會成為一個持續的壓力點。我認為，如果你只看歷史，就會有上下的變化，但在 2% 或 3% 的狹窄範圍內。所以我認為這只是本季發生的事情的一個函數。我認為這不會長期損害業務。

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

目前沒有其他問題。我現在將把電話轉給吉姆·拉利 (Jim Lally) 致閉幕詞。

Well, thank you, and thank you, everybody, for joining us this morning, and thank you for your interest in our company, and we look forward to speaking to you again, like it will be first part of 2025. Have a great day.

好的，謝謝大家，謝謝大家今天早上加入我們，感謝您對我們公司的興趣，我們期待再次與您交談，就像這將是 2025 年的第一部分一樣。祝您有美好的一天。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。