Enterprise Financial Services Corp (EFSC) 2023 Q4 法說會逐字稿

Thank you for standing by, and welcome to the Enterprise Financial Services Corp., fourth-quarter 2023 earnings conference call.

感謝您的耐心等待，歡迎參加 Enterprise Financial Services Corp. 2023 年第四季財報電話會議。

I would now like to welcome Jim Lally, President and CEO, to begin the call.

我現在歡迎總裁兼執行長吉姆·拉利 (Jim Lally) 開始通話。

Jim, over to you.

吉姆，交給你了。

Well, thank you, Mandeep, and thank you all very much for joining us this morning.

好的，謝謝你，曼迪普，非常感謝大家今天早上加入我們。

And welcome to our 2023 fourth-quarter earnings call.

歡迎參加我們的 2023 年第四季財報電話會議。

Today is January 23, 2024, and joining me this morning is Keene Turner, EFSC's Chief Financial Officer and Chief Operating Officer; Scott Goodman, President of Enterprise Bank & Trust; and Doug Bauche, Chief Credit Officer for Enterprise Bank & Trust.

今天是 2024 年 1 月 23 日，今天早上與我一起的是 EFSC 財務長兼營運長 Keene Turner； Scott Goodman，企業銀行與信託總裁； Doug Bauche，Enterprise Bank & Trust 首席信貸長。

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.

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。

The presentation and earnings release were furnished on SEC Form 8-K yesterday.

昨天，該簡報和收益發布已在 SEC 8-K 表格中提供。

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.

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 fourth quarter once again showed the strong earnings power of our company, despite the manifestation of a few credit challenges that we experienced.

儘管我們經歷了一些信貸挑戰，但第四季度再次顯示了我們公司強勁的獲利能力。

Diluted earnings per share for the quarter was $1.16, versus $1.17 in the third quarter and $1.58 in the fourth quarter of 2022.

本季稀釋後每股收益為 1.16 美元，而 2022 年第三季為 1.17 美元，第四季為 1.58 美元。

Before I get into some of the highlights of a very strong quarter and year, I would like to briefly address the elevated level of charge-offs that we experienced during the quarter.

在介紹非常強勁的季度和年度的一些亮點之前，我想簡要介紹一下我們在本季度經歷的沖銷水平升高的問題。

Two relationships that we charged off during the quarter could be described as extraordinary and uncharacteristic.

我們在本季結束的兩段關係可以說是非同尋常、非同尋常。

The first such credit was an agricultural loan which we believe was an isolated incident that was not directly related to our credit underwriting.

第一個此類信貸是農業貸款，我們認為這是一個孤立事件，與我們的信貸承銷沒有直接關係。

There were irregularities in the financial information provided by the borrower that masked the challenges it was facing and ultimately covered up a $13 million collateral shortfall.

借款人提供的財務資訊存在違規行為，掩蓋了其面臨的挑戰，並最終掩蓋了 1300 萬美元的抵押品缺口。

In the fourth quarter, we placed the full $16 million relationship on non-performing status and correspondingly charged off the $13 million shortfall.

在第四季度，我們將全部 1,600 萬美元的關係置於不良狀態，並相應沖銷了 1,300 萬美元的缺口。

Additionally, we are taking the appropriate actions and utilizing all available resources to recover what we can for the remaining $3 million outstanding.

此外，我們正在採取適當的行動並利用所有可用資源來追回剩餘的 300 萬美元。

We have stopped originating new credit relationships in the agricultural space and will wind down this approximately $200 million portfolio over the next few years.

我們已停止在農業領域建立新的信貸關係，並將在未來幾年內逐步減少這項約 2 億美元的投資組合。

We have our team engaged, and we are actively conducting thorough reviews of each relationship, including physical farm inspections and even more extensive collateral field audits, to reinforce our confidence in the balance of the portfolio.

我們的團隊積極參與，並且正在積極對每種關係進行徹底審查，包括實地農場檢查和更廣泛的附帶現場審計，以增強我們對投資組合平衡的信心。

We will be engaging a third party to validate these findings to ensure that we do not have any other similar situations to this one.

我們將聘請第三方來驗證這些調查結果，以確保我們不會再出現與此類似的情況。

Our initial review provides comfort with respect to the health of the remainder of the portfolio.

我們的初步審查讓我們對投資組合其餘部分的健康狀況感到放心。

The other major loss that we experienced in the quarter was related to a $10 million unsecured credit exposure that was part of a first-choice legacy relationship to a Southern California commercial real estate investor.

我們在本季經歷的另一項重大損失與 1000 萬美元的無擔保信貸風險有關，該風險是與南加州商業房地產投資者的首選遺留關係的一部分。

After several unsuccessful attempts to find suitable collateral to shore up this credit and the borrower's inability to keep payments current, we took this unfortunate but appropriate action to charge off this credit.

在多次嘗試尋找合適的抵押品來支撐此信貸但未成功且藉款人無法及時付款後，我們採取了這一不幸但適當的行動來沖銷此信貸。

$3 million of this was identified and reserved for in the third quarter, with the remaining $7 million reserved in the fourth quarter.

其中 300 萬美元已確定並在第三季預留，其餘 700 萬美元在第四季預留。

We ultimately charged off the full $10 million unsecured portion.

我們最終沖銷了 1000 萬美元的無擔保部分。

We will continue to pursue all remedies for any sort of recovery.

我們將繼續尋求一切補救措施以實現任何形式的恢復。

The remainder of our loan portfolio has performed as we anticipated.

我們貸款組合的其餘部分的表現符合我們的預期。

Overall, classified loans remained stable in the quarter and NPLs declined over 10% to $43 million, while classified loans to capital held steady at 10% at year-end.

總體而言，本季分類貸款維持穩定，不良貸款下降超過 10%，至 4,300 萬美元，而分類貸款資本率在年底穩定在 10%。

Delinquencies were well controlled at year end at only 15 basis points.

年底拖欠率得到良好控制，僅 15 個基點。

Entering 2024, I'm confident in our ability to deliver asset-quality results that are in line with our historically strong performance.

進入 2024 年，我對我們有能力提供與我們歷史上強勁表現相符的資產品質結果充滿信心。

Despite this unusual level of charge-offs and appropriate increase to our provision expense, our company delivered very strong financial results for both the fourth quarter and the entirety of 2023.

儘管沖銷水準異常高，撥備費用也適當增加，但我們公司在第四季度和 2023 年全年均取得了非常強勁的財務業績。

The summary of this begins on slide three.

對此的總結從第三張投影片開始。

Keene will provide much more detail on our quarterly and full-year financial performance in his comments, but ahead of these, I would like to provide a few highlights.

基恩將在他的評論中提供有關我們季度和全年財務業績的更多詳細信息，但在此之前，我想提供一些亮點。

Our strong financial performance continued during the fourth quarter.

我們第四季持續保持強勁的財務業績。

We earned net income of $44.5 million, or $1.16 per diluted share, and we produced a ROAA of 1.28% and a PPNR ROA (sic - see slide 3, "ROAA") of 2.10%.

我們的淨利潤為 4,450 萬美元，即稀釋後每股收益 1.16 美元，ROAA 為 1.28%，PPNR ROA（原文如此，請參閱投影片 3，「ROAA」）為 2.10%。

ROATCE too improved when compared to the third quarter, increasing to 14.98% compared to 14.49%.

與第三季相比，ROATCE 也有所改善，從 14.49% 增加到 14.98%。

These results reflect a robust earnings profile that allowed us to absorb some deterioration in credit during the quarter.

這些結果反映了強勁的獲利狀況，使我們能夠吸收本季信貸狀況的一些惡化。

Combined with our strong reserves and balance sheet, we remain positioned to operate as we have in the past.

結合我們強大的儲備和資產負債表，我們仍能像過去一樣運作。

This means both delivering returns to shareholders, while also supporting the needs of existing and new clients.

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。

The ability to continue to fulfill the loan needs of these clients and prospects continues to open up channels of deposit growth as well.

繼續滿足這些客戶和潛在客戶的貸款需求的能力也將繼續開闢存款成長的管道。

Like in years past, we experienced our typical fourth-quarter strength and loan growth.

與過去幾年一樣，我們經歷了典型的第四季實力和貸款成長。

For the quarter, loans increased $267 million, or 10% annualized.

本季貸款增加 2.67 億美元，年化成長率為 10%。

As important, we again were able to fund this growth with our client deposits, which increased by $479 million in the quarter after netting out the reduction in brokerage CDs.

同樣重要的是，我們再次能夠透過客戶存款為此成長提供資金，在扣除經紀 CD 的減少後，本季客戶存款增加了 4.79 億美元。

We finished the year with a loan-to-deposit ratio of 89.4%, and our ratio of DDA to total deposits came in at 32.5%.

全年貸存比為 89.4%，DDA 佔存款總額的比率為 32.5%。

A couple of things worth mentioning regarding these results.

關於這些結果，有幾件事值得一提。

First, we are seeing all markets and businesses contributing to these numbers.

首先，我們看到所有市場和企業都對這些數字做出了貢獻。

Unlike in years past, we are not relying on any one or two markets or businesses to achieve.

與過去幾年不同，我們不再依賴任何一兩個市場或企業來實現目標。

This diversification, both in terms of geography and revenue, has been intentional, and the fruits of these investments continue to manifest themselves in our financial results.

這種地域和收入方面的多元化都是有意而為之的，這些投資的成果持續體現在我們的財務表現中。

Secondly, post the March banking crisis, we set a goal to fund our second half loan growth with client deposits.

其次，在三月的銀行危機之後，我們設定了一個目標，用客戶存款為下半年的貸款成長提供資金。

Not only did we do this, but we just about funded the entire year's loan growth with our second half success.

我們不僅做到了這一點，而且憑藉下半年的成功，我們幾乎為全年的貸款成長提供了資金。

We also set a goal to keep the percentage of DDA to total deposits north of 30%, and we accomplished this, too.

我們也設定了目標，將DDA佔總存款的比例維持在30%以上，而我們也做到了這一點。

Finally, we believe that we have relatively stabilized NII, which means that our daily net interest income has remained stable the last several months.

最後，我們認為我們的NII相對穩定，這意味著我們的每日淨利息收入在過去幾個月保持穩定。

Scott will give much more color on the markets and the businesses where we saw continued success, but I am encouraged that we will be able to fund our mid-single-digit loan growth in 2024 with well-priced, relationship-oriented client deposits.

斯科特將為我們持續取得成功的市場和企業提供更多的信息，但令我感到鼓舞的是，我們將能夠通過價格合理、以關係為導向的客戶存款為2024 年中等個位數的貸款成長提供資金。

Moving on to capital.

轉向資本。

Our balance sheet remains strong and positioned for continued growth.

我們的資產負債表依然強勁，並有望持續成長。

Capital levels at quarter-end remain stable and strong, with our TCE to TA ratio at 8.96%.

季度末的資本水準保持穩定和強勁，我們的 TCE 與 TA 比率為 8.96%。

Tangible book value per common share at year-end was $33.85. This is an increase of 18% in 2023 and is due to our strong earnings and return profile.

年末每股普通股有形帳面價值為 33.85 美元。到 2023 年，這一數字將成長 18%，這得益於我們強勁的獲利和回報狀況。

Before I move on to where we will be focused in 2024, I want to reiterate that the strength of our earnings profile generates pre-provisioned earnings that have averaged over $70 million per quarter this year.

在談到我們 2024 年的重點之前，我想重申一下，我們的盈利狀況強勁，今年的預備備盈利平均每季超過 7000 萬美元。

This provides a significant buffer to absorb credit issues before ever touching our loan loss reserves or capital that are also at very strong levels, particularly when considering the short duration of our loan portfolio.

這為我們在觸及同樣處於非常強勁水平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，特別是考慮到我們貸款組合的期限較短時。

Slide 5 shows where we are focused for the foreseeable future.

投影片 5 顯示了我們在可預見的未來的關注重點。

Just like we have done in the second half of 2023, we will continue to be focused on funding future loan growth for client deposits.

就像我們在 2023 年下半年所做的那樣，我們將繼續專注於為客戶存款的未來貸款成長提供資金。

Additionally, I am confident that we can continue to improve shareholder value through the execution of our strategy.

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。

We will stay focused on continually improving our performance in all our business lines and markets.

我們將繼續專注於不斷提高我們所有業務線和市場的表現。

This, combined with improved credit performance and continued steadfast expense management, should consistently produce strong earnings amid the current economic and rate environment that we are in.

再加上信貸表現的改善和持續堅定的費用管理，在我們目前所處的經濟和利率環境下，應該會持續產生強勁的收益。

My optimism for our prospects stems both from my confidence in our business model, careful review of our loan portfolio, and the optimism that I continue to hear from our clients.

我對我們前景的樂觀源於我對我們業務模式的信心、對我們貸款組合的仔細審查以及我不斷從客戶那裡聽到的樂觀情緒。

One final note.

最後一點。

Throughout 2024, we will be working on a core system conversion.

2024 年，我們將致力於核心系統轉換。

After 35 years on the same system, this upgrade will further improve our efficiency in many areas while also improving the quality and accessibility of our data.

在同一個系統上使用了 35 年之後，這次升級將進一步提高我們在許多領域的效率，同時也提高我們資料的品質和可近性。

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

說到這裡，我想把電話轉給史考特古德曼。

Scott?

史考特？

Thank you, Jim, and good morning, everyone.

謝謝吉姆，大家早安。

As you heard from Jim, Q4 loan and deposit growth was strong, pushing us to double-digit annual growth for both categories in 2023.

正如您從吉姆那裡聽到的那樣，第四季度貸款和存款增長強勁，推動我們在 2023 年這兩個類別的年增長率達到兩位數。

These results are significant, not just based on the magnitude of the growth, but also in considering that they're fully organic and highly diversified across geographic markets and specialty business lines.

這些結果意義重大，不僅基於成長的幅度，而且還考慮到它們在地理市場和專業業務領域完全有機且高度多元化。

Loans, which are highlighted on slides 8 and 9, were up $1.15 billion, or 12%, for the year, with most major categories of the portfolio contributing materially to this growth.

幻燈片 8 和 9 中突出顯示的貸款今年增加了 11.5 億美元，即 12%，投資組合的大多數主要類別對這一增長做出了重大貢獻。

For the quarter, broken out on slide 9, loans rose $267 million, contributing 23% of our growth for the year, and up 157% from the prior quarter, displaying the traditional seasonal lift which is characteristic of our portfolio.

如投影片 9 所示，本季貸款增加了 2.67 億美元，占我們全年成長的 23%，比上一季成長 157%，顯示出我們投資組合的傳統季節性成長特徵。

C&I was a standout this quarter, benefiting from several significant new client relationships and elevated usage on revolving lines of credit.

C&I 本季表現出色，受益於多個重要的新客戶關係以及循環信貸額度使用量的增加。

Specialized loan growth was helped by strong seasonal performance in the life insurance, premium finance, and tax credit lines of business.

專業貸款的成長得益於人壽保險、保費融資和稅收信貸業務的強勁季節性表現。

In premium finance, we continue to originate steady closings on new policy loans from our referral network and experience the typical Q4 uptick in premium payments due for the existing policies.

在保費融資方面，我們繼續透過推薦網絡穩定地結清新保單貸款，並經歷了現有保單到期保費第四季度典型的上升。

Advances on affordable housing projects and process accounted for the majority of the increase in the tax credit portfolio.

經濟適用住房項目和流程的進展佔稅收抵免組合成長的大部分。

For Q4, SBA came in somewhat below expectations, down $27 million, due mainly to slower execution of the pipeline and elevated prepayments.

第四季度，SBA 的業績略低於預期，減少了 2,700 萬美元，這主要是由於管道執行速度較慢和預付款增加。

Prepayments continued to be stressed by the higher rate environment, and we remain committed to our high credit standards and focus on owner-occupied real estate-secured loans.

預付款持續受到較高利率環境的壓力，我們仍然致力於維持高信貸標準，並專注於業主自用房地產擔保貸款。

Much of the lagged pipeline is expected to push into Q1, and gross production remains relatively consistent, but paydowns continue to be a headwind.

大部分滯後的管道預計將進入第一季度，總產量保持相對穩定，但付款仍然是一個阻力。

The sponsor finance book posted a modest decline in the quarter, as activity slowed in general in this space during Q4.

由於第四季度該領域的活動總體放緩，贊助商財務帳簿在本季度略有下降。

Following robust activity in the first half of the year, private equity has slowed their pace of acquisition to digest this activity and to consider the impact and direction of the interest rate environment on their pipeline opportunities.

繼上半年的強勁活動之後，私募股權公司放慢了收購步伐，以消化這項活動，並考慮利率環境對其管道機會的影響和方向。

We're also taking a disciplined approach to sponsors and to credit structures in this segment, and we would expect these factors to moderate the growth rate in the coming year.

我們也對這一領域的贊助商和信貸結構採取嚴格的方法，我們預計這些因素將減緩來年的成長率。

Moving to slide 10.

轉到投影片 10。

Loan portfolios posted growth across all major regions for the year and in the current quarter.

今年和本季所有主要地區的貸款組合均出現成長。

Specialty lending was up modestly for the quarter related to the aforementioned niche business lines, as well as continued growth in the practice finance vertical, which was up $12 million in Q4 and $81 million for the full year of 2023.

本季專業貸款小幅成長，與上述利基業務線相關，以及實踐金融垂直領域的持續成長，第四季成長 1,200 萬美元，2023 年全年成長 8,100 萬美元。

In the Midwest, St. Louis and Kansas City portfolios were up $78 million, or nearly 10% annualized, showing balanced growth between increased line usage, fundings on construction and process, and new loan originations.

在中西部，聖路易斯和堪薩斯城的投資組合增加了 7,800 萬美元，年化成長率接近 10%，顯示了線路使用量增加、建設和流程資金以及新貸款發放之間的平衡成長。

Notable deals this quarter include a new relationship with a middle market construction materials provider and two new loan facilities with long-time relationships in the hospitality and business finance industries.

本季值得注意的交易包括與一家中間市場建築材料供應商建立的新關係以及兩項與酒店和商業金融行業有著長期合作關係的新貸款安排。

In the Southwest, the combined markets grew $102 million in Q4 and 26% for the full year of 2023.

在西南部，第四季度的綜合市場成長了 1.02 億美元，2023 年全年成長了 26%。

Results for the quarter were bolstered by elevated new originations, as well as additional fundings on existing construction projects and process.

本季度的業績得益於新項目的增加以及現有建設項目和流程的額外資金。

Significant new loans include new relationships with a premier middle market electric contractor and a specialty precision parts manufacturer in Phoenix, as well as large, well-established general contractor in Las Vegas.

重要的新貸款包括與菲尼克斯一家一流的中間市場電力承包商和一家專業精密零件製造商以及拉斯維加斯一家大型、成熟的總承包商建立的新關係。

In our western region of Southern California, loan balances were up by $58 million in Q4 to round out a year in which we grew this portfolio by 9.5%.

在南加州西部地區，第四季貸款餘額增加了 5,800 萬美元，這一年我們的投資組合成長了 9.5%。

The increase this quarter is primarily related to success by our recent talent additions onboarding a number of new relationships, including companies in the specialty food production business, financial services, and manufacturing spaces.

本季的成長主要與我們最近增加的人才成功建立了許多新關係有關，包括特色食品生產業務、金融服務和製造領域的公司。

We also continue to expand legacy relationships in this book, with new loans to top-tier clients in the franchise and commercial real estate sectors.

我們也在本書中繼續擴大傳統關係，向特許經營和商業房地產領域的頂級客戶提供新貸款。

Moving now to deposits on slides 11 and 12.

現在轉向幻燈片 11 和 12 上的存款。

Total deposit balances were up $266 million for the quarter and $1.3 billion, or 12.4%, year over year.

本季總存款餘額增加 2.66 億美元，年增 13 億美元，成長 12.4%。

Breaking this down, non-interest-bearing DDA accounts were down year over year by $684 million, with interest-bearing DDA accounts up by a similar amount due mainly to the remixing behavior of depositors precipitated by accelerated rate increases throughout 2023.

細分來看，無息 DDA 帳戶年減了 6.84 億美元，計息 DDA 帳戶增加了類似金額，這主要是由於 2023 年全年利率加速上漲導致儲戶的重新混合行為。

In the quarter, however, non-interest-bearing DDA balances grew by $107 million, relating to success of onboarding new C&I commercial banking relationships, increased property management and third-party escrow accounts, as well as some seasonal cash build.

然而，本季無息 DDA 餘額增加了 1.07 億美元，這與成功建立新的 C&I 商業銀行關係、增加物業管理和第三方託管帳戶以及一些季節性現金累積有關。

Deposit growth by region is broken out on slide 13.

投影片 13 詳細列出了按地區劃分的存款成長。

We grew client balances, net of specialty deposits and brokered CDs, in the quarter by $394 million, with growth being spread throughout the geographic footprint and across all regions.

本季度，扣除專業存款和經紀 CD 後，我們的客戶餘額增加了 3.94 億美元，成長遍及整個地理範圍和所有地區。

Higher growth was experienced in the Midwest, mainly relating to the larger C&I books in our Kansas City and St. Louis markets, but highlighted as well by several large new C&I deposit relationships.

中西部地區經歷了較高的成長，主要與堪薩斯城和聖路易斯市場較大的 C&I 帳簿有關，但也因幾個大型新的 C&I 存款關係而突出。

In the West and Southwest regions, higher balances reflect the impacts of new relationships, as well as a focused effort to attract new funds through the consolidation of balances from our existing clients.

在西部和西南地區，較高的餘額反映了新關係的影響，以及透過整合現有客戶餘額來吸引新資金的集中努力。

Specialty deposits grew $85 million in the quarter and are broken out in more detail on slide 14.

本季特種存款增加了 8,500 萬美元，幻燈片 14 中有更詳細的細分。

The increases this quarter were mainly within the property management and third-party escrow segments, as we continue to expand these lines of business with new accounts and new relationships.

本季的成長主要集中在物業管理和第三方託管領域，因為我們繼續透過新帳戶和新關係擴展這些業務範圍。

Q4 is typically a seasonally softer growth quarter in the community association line, as expenses are paid and new accounts begin to be opened, which will then fund up as assessments are collected during Q1.

第四季度通常是社區協會線中季節性增長較疲軟的季度，因為費用已支付，新帳戶開始開設，然後隨著第一季收集評估費用而籌集資金。

Additional detail on the core funding mix and the account activity is shown on slide 15.

有關核心資金組合和帳戶活動的更多詳細資訊如幻燈片 15 所示。

The majority of our growth this quarter has been with the commercial account base which generally represents relationship-based balances, 80% of which are treasury management clients.

本季我們的成長大部分來自商業帳戶基礎，通常代表基於關係的餘額，其中 80% 是資金管理客戶。

And while we have seen the aforementioned mix shift from DDA into interest-bearing options, the pace of this activity has slowed. 37% of our total balances still reside in non-interest-bearing accounts.

儘管我們已經看到上述組合從 DDA 轉向計息選擇權，但這項活動的步伐已經放緩。我們總餘額的 37% 仍然存在無息帳戶中。

The underlying account activity also continues to trend favorably and reflect our intentional and elevated efforts toward emphasizing core deposits, with new accounts open exceeding closed accounts and net balance increases when comparing new accounts to closed accounts across all channels.

基礎帳戶活動也持續呈現有利趨勢，反映出我們有意加大力度強調核心存款，新開戶超過已關閉帳戶，所有管道的新帳戶與已關閉帳戶進行比較時，淨餘額增加。

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

現在，我想將電話轉給基恩·特納，徵求他的意見。

Keene?

基恩？

Thanks, Scott, and good morning, everyone.

謝謝斯科特，大家早安。

My comments begin on slide 16, where we reported earnings per share of $1.16 in the fourth quarter on net income of $45 million.

我的評論從第 16 張投影片開始，我們報告第四季每股收益為 1.16 美元，淨利潤為 4500 萬美元。

Excluding the impact of the FDIC special assessment, EPS was $1.21 per share, an increase from the third quarter.

剔除FDIC特別評估的影響，每股收益為1.21美元，較第三季有所成長。

Net interest income in the quarter was relatively stable.

本季淨利息收入相對穩定。

Earning asset growth and disciplined pricing on loans and deposits mostly offset the increase in interest expense in the quarter due to the deposit remixing and rate changes.

獲利資產的成長以及貸款和存款的嚴格定價大部分抵消了本季由於存款重組和利率變化而導致的利息支出的增加。

Fee income was seasonally higher, which is typical in the fourth quarter, and was the primary driver of the increase in operating revenue.

費用收入季節性較高，這是第四季的典型現象，也是營業收入成長的主要動力。

The provision for credit loss is increased for the quarter, as Jim discussed, driven by net charge-off and loan growth.

正如吉姆所討論的，在淨沖銷和貸款成長的推動下，本季的信貸損失撥備有所增加。

And non-interest expense was higher in the current quarter, mostly due to the FDIC special assessment.

本季非利息支出較高，主要是由於 FDIC 的特別評估。

Overall, pre-provision net revenue of $76 million for the quarter increased $11 million, or 16%, from the third quarter.

整體而言，本季預撥備淨收入為 7,600 萬美元，較第三季增加 1,100 萬美元，即 16%。

For the full year, pre-provision net revenue was $285 million, an increase of 10% from 2022.

全年預撥備淨收入為2.85億美元，較2022年成長10%。

Pre-provision net revenue is up 12% in 2023 and, when you consider that pre-provision net revenue in 2022, included $5 million of PPP income that did not repeat this year.

2023 年撥備前淨收入將成長 12%，並考慮到 2022 年撥備前淨收入包括今年未重複的 500 萬美元 PPP 收入。

This continues to reflect the strength of our earnings profile and our ability to generate capital to support balance sheet growth.

這繼續反映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 17, net interest income for the fourth quarter of 2023 was $141 million, which was a decrease of less than $1 million compared to the linked quarter.

轉向投影片 17，2023 年第四季的淨利息收入為 1.41 億美元，與上一季相比減少了不到 100 萬美元。

Interest income increased $6.2 million in the fourth quarter, driven mainly by continued loan growth and higher rates on portfolio loans.

第四季利息收入增加了 620 萬美元，主要是由於貸款持續成長和投資組合貸款利率上升。

Cash levels also increased modestly as a result of strong customer funding and added $1 million to interest income.

由於客戶資金強勁，現金水準也略有增加，利息收入增加了 100 萬美元。

Loan yields increased 7 basis points, while average balances were higher by more than $160 million.

貸款收益率上升 7 個基點，平均餘額增加超過 1.6 億美元。

The average interest rate on new loan originations in the fourth quarter of 2023 was 7.95%, and the most recent month loan yield is just under 7% overall.

2023年第四季新發放貸款的平均利率為7.95%，最近一個月的貸款收益率整體略低於7%。

More details follow on slide 18.

更多詳細資訊請參閱幻燈片 18。

Interest expense growth slightly outpaced growth in interest income in the quarter.

本季利息支出成長略高於利息收入成長。

Customer deposit balance has increased nearly $480 million in the quarter.

本季客戶存款餘額增加了近 4.8 億美元。

This additional funding allowed us to reduce broker deposits by $213 million.

這筆額外資金使我們能夠減少經紀人存款 2.13 億美元。

The balance growth was coupled with a 19-basis-point increase in the cost of deposits, which was half the increase we observed in the previous quarter.

餘額成長伴隨著存款成本增加 19 個基點，這是我們上一季觀察到的增幅的一半。

With that said, the total cost of deposits was 2.03% in the fourth quarter and only slightly higher at 2.07% in the most recent month.

儘管如此，第四季的存款總成本為 2.03%，最近一個月僅略有上升，為 2.07%。

The deposit pricing performance is aided by overall DDA percentage remaining at approximately 33%.

存款定價表現得益於整體 DDA 百分比維持在約 33%。

The resulting net interest margin was 4.23% in the fourth quarter of 2023, a decrease of 10 basis points from the linked quarter, and represents the 5-basis-point drift from where net interest margin was in the month of September.

2023 年第四季淨利差為 4.23%，較上一季下降 10 個基點，較 9 月淨利差漂移 5 個基點。

We're encouraged by recent results to demonstrate deposit pricing is beginning to further stabilize, and margin pressure, while so present, continues to level off.

我們對最近的結果感到鼓舞，表明存款定價開始進一步穩定，而保證金壓力雖然存在，但繼續趨於平穩。

Looking forward, while interest rates remain at current levels or higher for longer, we expect that overall funding costs will continue to move slightly higher over the next couple of quarters and we will see margin drift of around 5 basis points per quarter on the existing balance sheet.

展望未來，雖然利率在較長時間內保持在當前水平或更高水平，但我們預計未來幾季總體融資成本將繼續小幅上升，我們將看到現有餘額每季利潤率漂移約 5 個基點床單。

Current asset growth at current spreads should allow us to defend net interest income dollars, albeit somewhat with lower margin overall.

當前利差下的當前資產成長應該使我們能夠捍衛淨利息收入美元，儘管整體利潤率較低。

With the prospect of rate cuts on the table, we anticipate each quarter-point reduction in the Fed funds rate equates to an additional 6 to 8 basis points of margin loss initially, or $2 million to $2.5 million of quarterly net interest income.

考慮到降息的前景，我們預計聯邦基金利率每下降 25 個基點，就相當於最初的保證金損失增加 6 至 8 個基點，或季度淨利息收入減少 200 萬至 250 萬美元。

Our expectation is that deposit rates will be more stable initially, and in order to remain competitive, we may need to be cautious in reducing those rates.

我們的預期是存款利率最初會更加穩定，為了保持競爭力，我們可能需要謹慎地降低利率。

With additional Fed cuts, we will be more methodical in moving deposit rates down, just as we were when we were increasing them.

隨著聯準會進一步降息，我們將更有條理地降低存款利率，就像我們提高存款利率一樣。

And while not a component of net interest income, reduction in interest rates would positively impact deposit-related non-interest expense trends, as more than half of the underlying balances are indexed to the Fed funds rate.

雖然不是淨利息收入的組成部分，但利率下降將對與存款相關的非利息支出趨勢產生積極影響，因為超過一半的基礎餘額與聯邦基金利率掛鉤。

Each 25 basis points in Fed funds equates to approximately $4 million of annual expense on this line item.

聯邦基金每 25 個基點相當於該項目每年約 400 萬美元的支出。

With that, we'll move on to our credit trends on slide 19.

接下來，我們將繼續討論投影片 19 上的信用趨勢。

Net charge-offs were $28 million for the quarter and $38 million for the year, representing 37 basis points of average loans in 2023.

本季淨沖銷額為 2,800 萬美元，全年淨沖銷額為 3,800 萬美元，相當於 2023 年平均貸款的 37 個基點。

The majority of the charge-offs in the quarter relate to the two relationships that Jim discussed, the real estate developer in California and the agricultural loan that arose unexpectedly late in the fourth quarter.

本季的大部分沖銷與吉姆討論的兩種關係有關，即加州的房地產開發商和第四季末意外出現的農業貸款。

These charge-offs, coupled with the charge-off on the investor-owned office loan that moved into other real estate in the third quarter, make up the majority for the year.

這些沖銷，加上第三季轉移到其他房地產的投資者擁有的辦公貸款的沖銷，構成了今年的大部分。

Non-performing assets were 34 basis points of total assets, compared to 40 basis points at the end of September.

不良資產佔總資產的比例為 34 個基點，而 9 月底為 40 個基點。

There were $32 million of loans that moved into non-performing status in the fourth quarter, of which $24 million were charged off.

第四季有 3,200 萬美元的貸款進入不良狀態，其中 2,400 萬美元被沖銷。

An additional $4 million of non-performing loans were charged off that were outstanding at the end of September.

9 月底還沖銷了另外 400 萬美元的不良貸款。

Between gross charge-offs, recoveries, and paydowns, non-performing assets decreased $6.4 million from the third quarter.

在總沖銷、收回和付款之間，不良資產較第三季減少了 640 萬美元。

We proactively worked through a number of problem credits over the last two quarters so that these issues were not carried forward into the current year.

我們在過去兩個季度積極解決了一些問題信貸，使這些問題不會延續到今年。

The provision for credit losses of $18 million during the fourth quarter largely reflects the impact of net charge-offs and loan growth, partially offset by modest improvement in the economic forecast.

第四季信貸損失準備金為 1800 萬美元，主要反映了淨沖銷和貸款成長的影響，部分被經濟預測的適度改善所抵消。

Included in the provision for credit losses is $3.2 million benefit from the reduction of the reserve for unfunded commitments.

信貸損失準備金中包括因無資金承諾準備金減少而產生的 320 萬美元收益。

This benefit primarily relates to a reduction in commitments on non-performing loans and a general reduction in commitments due to the higher advance rate at the end of the quarter.

這一收益主要與不良貸款承諾的減少以及由於季度末預付款率較高而導致的承諾的普遍減少有關。

Slide 20 represents the allowance for credit losses.

投影片 20 代表信用損失準備金。

The allowance for credit losses represents 1.24% of total loans or 1.35% when adjusting for government-guaranteed loans.

信用損失準備金佔貸款總額的1.24%，調整政府擔保貸款後為1.35%。

On slide 21, fourth-quarter fee income of $25 million was an increase of $13 million from the third quarter, driven primarily by tax credit income which is typically strongest in the fourth quarter.

在投影片21 中，第四季的費用收入為2,500 萬美元，比第三季增加了1,300 萬美元，這主要是由稅收抵免收入推動的，而稅收抵免收入通常在第四季度最為強勁。

In addition to the seasonality, an 80-basis-point decrease in the 10-year SOFR rate in the quarter positively impact credits carried at fair value, driving approximately half of the quarterly profit.

除季節性因素外，本季 10 年期 SOFR 利率下降 80 個基點也對以公允價值計量的信貸產生了正面影響，推動了季度利潤的約一半。

Linked quarter increases related to community development, private equity distributions, and BOLI helped to offset the gain on SBA loan sales from the third quarter.

與社區發展、私募股權分配和 BOLI 相關的季度成長有助於抵消第三季 SBA 貸款銷售的收益。

As a reminder, along with the seasonal tax credit income, community development and private equity distributions will fluctuate from period to period.

需要提醒的是，隨著季節性稅收抵免收入的增加，社區發展和私募股權分配也會隨著時間的推移而波動。

Turning to slide 22, fourth-quarter non-interest expense was $93 million, an increase of $4 million compared to the third quarter.

轉向投影片 22，第四季非利息支出為 9,300 萬美元，比第三季增加 400 萬美元。

Included in the current quarter was the FDIC special assessment of $2.4 million.

本季包括 240 萬美元的 FDIC 特別評估。

Deposit service expenses were higher compared to the linked quarter primarily due to growth and average balances, as Scott mentioned.

正如斯科特所提到的，存款服務費用與上一季相比較高，主要是由於增長和平均餘額。

We do expect specialized deposits to continue to be a significant contributor to overall growth which will continue to drive this expense line item higher.

我們確實預計專業存款將繼續成為整體成長的重要貢獻者，這將繼續推動該費用項目走高。

Other expenses increased from the linked quarter but were partially offset by lower compensation and benefits expense related to lower performance-based incentive accruals and a reduction in accrued paid time off.

其他費用較上一季度有所增加，但被與基於績效的應計獎勵減少和應計帶薪休假減少相關的薪酬和福利費用減少所部分抵消。

The fourth quarter's core efficiency was 53.1%, a decrease of 312 basis points compared to the third quarter, driven primarily by the increase in fee income.

第四季核心效率為53.1%，較第三季下降312個基點，主要由手續費營收成長推動。

With some moderation of our net interest margin and net interest income expectations, in addition to the seasonally strong fee income, we do expect core efficiency to move up in the coming quarters.

隨著我們的淨利差和淨利息收入預期有所放緩，除了季節性強勁的費用收入外，我們預計未來幾季的核心效率將會上升。

For all other expense categories, we expect to prudently maintain cost controls.

對於所有其他費用類別，我們預計將審慎地維持成本控制。

Our capital metrics are shown on slide 23, and our tangible common equity ratio was 9% at the end of the third quarter, up from 8.5% in the linked quarter.

我們的資本指標如投影片 23 所示，第三季末我們有形普通股的比率為 9%，高於上一季的 8.5%。

The strength of our earnings profile and a rebound in the fair value of securities and derivatives drove the expansion in the quarter.

我們獲利狀況的強勁以及證券和衍生性商品公允價值的反彈推動了本季的擴張。

On a per share basis, tangible book value increased to $33.85, which is a 9% increase over the third quarter.

以每股計算，有形帳面價值增至 33.85 美元，比第三季成長 9%。

For the full year, tangible book value per share increased $5.18, or 18%.

全年每股有形帳面價值增加 5.18 美元，即 18%。

And looking back over a longer timeframe, we have successfully compounded tangible book value per share by 10% annually over the last five years.

回顧更長的時間範圍，我們在過去五年中成功地將每股有形帳面價值每年複合成長 10%。

With our capital, balance sheet, and liquidity in strong positions, we're operating with a strong foundation as we look into 2024.

憑藉我們的資本、資產負債表和流動性處於有利地位，我們在展望 2024 年時將擁有堅實的營運基礎。

And while there was significant turmoil in the industry to start the year, we had great success in expanding our client base and generating returns.

儘管今年年初行業出現了嚴重動盪，但我們在擴大客戶群和創造回報方面取得了巨大成功。

We delivered a 16% return on average tangible common equity, with average tangible common equity for the year at 8.7%, and delivered a 1.4% return on average assets.

我們的平均有形普通股本回報率為 16%，全年平均有形普通股本回報率為 8.7%，平均資產回報率為 1.4%。

With that, I'll conclude my comments, and I appreciate your attention.

至此，我將結束我的評論，感謝您的關注。

We're going to open the line for questions.

我們將開通提問專線。

(Operator Instructions) Jeff Rulis, D.A. Davidson.

（操作員說明）Jeff Rulis，D.A.戴維森。

Thanks.

謝謝。

Good morning.

早安.

Morning, Jeff.

早安，傑夫。

On the credit side, some pretty good detail on the charge-offs.

在信貸方面，有關沖銷的一些相當詳細的細節。

I guess, maybe a follow-on is, classified assets in the linked quarter were flat despite those larger charge-offs.

我想，也許後續的結果是，儘管沖銷規模較大，但相關季度的分類資產仍持平。

I guess, what segments filled in or rotated in into the classified balance to keep it flat rather than improving with the charge-offs?

我猜想，哪些部分填充或輪換到分類餘額中以保持持平，而不是透過沖銷來改善？

I think -- Jeff, this is Jim.

我想——傑夫，這是吉姆。

I think relative to the stabilization of the classifieds and those maintained that were there, it is the rapidity which these loans that rolled through and charged off didn't necessarily sit long enough in those areas such that it cleaned it out.

我認為，相對於分類廣告和現有分類廣告的穩定，這些貸款的滾動和沖銷速度並不一定會在這些領域停留足夠長的時間，從而將其清除。

Okay.

好的。

So maybe put another way, where you saw rotation into classifieds, is there some -- other than the credits that you identified, were there some increases that you could point to, segment-wise, or fairly granular?

因此，也許換句話說，當你看到分類廣告的輪換時，除了你確定的學分之外，是否還有一些你可以指出的、分段的或相當細粒度的增長？

I think it's very granular.

我認為它非常細粒度。

Looking at the list, and I studied it, it's widespread through the various markets and types.

看了這份清單，我研究了它，它廣泛存在於各種市場和類型中。

So there's no themes, if you will, relative to what's in that list.

因此，如果您願意的話，沒有與該清單中的內容相關的主題。

And I think the other good news is it's relatively small dollars per credit as well.

我認為另一個好消息是每個信用的費用也相對較少。

Okay.

好的。

Just the last one on credit.

只剩下最後一張信用證了。

I guess the criticized balances, last quarter, I think they were down a decent amount.

我猜想上個季度受到批評的餘額下降了相當多的金額。

I think they were down maybe $60 million linked quarter.

我認為他們在關聯季度可能損失了 6000 萬美元。

What were those balances in the fourth quarter relative to the third quarter?

相對於第三季度，第四季的餘額是多少？

I'll have Doug Bauche comment on that.

我會讓道格·鮑什對此發表評論。

Doug?

道格？

Yeah.

是的。

Thanks, Jeff.

謝謝，傑夫。

Really, two relationships that were downgraded from a monitor six to a special mention rating.

確實，有兩段關係從六級監控降級為特別提及評級。

One that would be related to the mortgage industry, a company that has performed well but in a down cycle right now is experiencing just some compressed cash flows.

一個與​​抵押貸款行業相關的公司，一家業績良好但目前處於下行週期的公司正經歷一些現金流壓縮。

So the risk rating on that relationship was downgraded as a special mention.

因此，這種關係的風險評級被降級為特別提及。

The other one would be a diverse mix of commercial real estate, largely one- to four-family real estate loans in the California market.

另一種是商業房地產的多樣化組合，主要是加州市場上一到四戶家庭的房地產貸款。

Again, performing well under the current interest rate environment, but looking forward at some of the repricing risk on that portfolio, a downgrade to special mention was taken there as well.

同樣，在當前利率環境下表現良好，但考慮到該投資組合的一些重新定價風險，我們也將評級下調至特別關注。

Good recourse, good long-term relationship, and the borrower is taking appropriate actions to monetize a few of the properties, curtail the debt, and we feel confident in their ability to continue to perform.

良好的追索權，良好的長期關係，借款人正在採取適當的行動將一些財產貨幣化，減少債務，我們對他們繼續履行職責的能力充滿信心。

Got it.

知道了。

So overall, criticized balances lifted linked quarter.

因此，總體而言，受到批評的餘額提振了相關季度。

Is that

就是它

--

--

Correct.

正確的。

Okay.

好的。

And any range of size if you were down $60 million in the prior quarter?

如果上一季虧損 6,000 萬美元，規模有多大？

What did you increase this quarter?

本季你增加了什麼？

Yes, similar back up probably, Jeff.

是的，可能有類似的備份，傑夫。

We're probably back up the $60 million that we saw of reduction in the prior quarter.

我們可能會支持上一季減少的 6000 萬美元。

Fair enough, okay.

很公平，好吧。

Just hopping over real quick on the margin discussion sounds.

只是在邊緣討論聽起來非常快。

I think, Keene, you said 5 basis points drift per quarter as we sit here and then maybe accelerates a bit with rate cuts.

我想，基恩，你說過我們坐在這裡每季浮動 5 個基點，然後可能會隨著降息而加速一點。

Any thoughts on the trajectory of NII, and I guess that would loop in your expectations for loan growth as well.

關於 NII 軌跡的任何想法，我想這也會影響您對貸款成長的預期。

But if you could -- are we approaching a bottom on NII even given that margin backdrop?

但如果可以的話——即使考慮到利潤率的背景，我們的NII是否已經接近底部？

Yeah, Jeff, I think we're generally expecting a mid-single-digit growth rate for both sides of the balance sheet.

是的，傑夫，我認為我們普遍預計資產負債表兩側的成長率將達到中個位數。

The 5 basis points is really static, and then I think dollars of growth, depending on how it occurs, will be helpful to that.

5個基點實際上是靜態的，然後我認為美元的增長，取決於它如何發生，將對此有所幫助。

I think in the first quarter, it's going to be difficult to overcome the day count from 4Q to 1Q even with the extra day this year.

我認為，即使今年多了一天，第一季也很難克服從第四季到第一季的天數。

But it it looks as though somewhere in the middle of the year, we'll start to see a pick-up with dollars of net interest income and some of that could be ruined depending if we get cuts on the back half.

但看起來好像在今年年中的某個時候，我們將開始看到美元淨利息收入的回升，其中一些可能會被破壞，具體取決於我們是否在下半年進行削減。

It'll -- that may be a little bit challenging and we may be treading water a little bit more than we would have otherwise.

這可能有點具有挑戰性，而且我們可能會比其他情況更能原地踏步。

But absent rate changes, I still think we feel pretty good about increasing net interest income dollars on the back half, albeit with some continued drift of net interest margin.

但如果沒有利率變化，我仍然認為我們對後半段增加淨利息收入感到非常滿意，儘管淨利差繼續出現一些變化。

Got it.

知道了。

Thank you.

謝謝。

I'll step back.

我會退後一步。

Thanks, Jeff.

謝謝，傑夫。

Damon DelMonte, KBW.

達蒙·德爾蒙特，KBW。

Hey, good morning, guys.

嘿，早上好，夥計們。

Hope everybody is doing well.

希望每個人都做得很好。

Thanks for taking my question.

感謝您提出我的問題。

Just wanted to ask on the expense front here.

只是想問一下這裡的費用方面。

I think you mentioned you're working on a systems upgrade during the course of this year.

我想您提到今年您正在進行系統升級。

How should we think about a quarterly cadence for operating expenses outside of the specialty deposit cost line that could be related to this system upgrade?

我們應該如何考慮可能與本次系統升級相關的專業存款成本線之外的季度營運費用？

Hey, Damon.

嘿，達蒙。

This is Keene.

這是基恩。

I don't anticipate that you'll have -- I mean, there's going to be some payroll and other things for staffing up, but I think we can absorb that generally.

我預計你不會——我的意思是，會有一些工資和其他人員配備的事情，但我認為我們總體上可以吸收。

I think there's some expenses for the implementation that may come through during the year and we'll point those out.

我認為今年可能會產生一些實施費用，我們會指出這些費用。

That could be up to $4 million or $5 million depending on what's capitalized versus what needs to come through the P&L.

這可能高達 400 萬美元或 500 萬美元，具體取決於資本化金額與損益表所需金額。

And I would say that those are going to occur mid to late in the year generally.

我想說，這些通常會在今年中後期發生。

So we'll continue to point those out, but I think the run rate from here for the first quarter is obviously going to step up.

因此，我們將繼續指出這些，但我認為第一季的運行率顯然會上升。

Probably 93% to 95% is what we're expecting.

大概 93% 到 95% 就是我們所期望的。

Comp and benefits was a little bit better in the fourth quarter, and then you've got the seasonality to it in the first quarter.

第四季的薪資和福利稍好一些，然後第一季就受到了季節性的影響。

So that's what we're thinking, and that's also just inclusive of specialty deposits.

這就是我們的想法，而且這也只包括專業存款。

And then again, maybe later in the year, we get some of those core related expenses and we'll have a better sense for what those numbers are in the upcoming quarters.

再說一次，也許在今年晚些時候，我們會得到一些與核心相關的費用，我們將對未來幾季的這些數字有更好的了解。

Got you.

明白你了。

Okay.

好的。

And then did you say that for a 25-basis-point cut in rates, that's about a $4 million positive impact on the specialty deposit expenses?

那麼您是否說過，利率下調 25 個基點，將對專業存款支出產生約 400 萬美元的正面影響？

Yeah, that's correct.

是的，這是正確的。

And I think the proportions there are roughly half of the compression you get on a quarterly basis in net interest income would be offset in that non-interest expense line item.

我認為，每季淨利息收入壓縮的大約一半比例將在非利息支出項目中被抵銷。

Some of that may be subject to timing, but once you run that out and flush it through, that's generally what we're expecting.

其中一些可能會受到時間的限制，但一旦你用完並沖掉它，這通常就是我們所期望的。

Okay, got it.

好，知道了。

Great.

偉大的。

Thank you.

謝謝。

And then, just another question on the ag portfolio.

然後，還有一個關於農業投資組合的問題。

I think, Jim, you said it's about a $200 million portfolio and you're going to look to wind that down.

我想，吉姆，你說過這是一個大約 2 億美元的投資組合，你會考慮逐步減少它。

Given what happened with this one particular credit, are there any early signs that you could see other areas of stress within that portfolio as you go through your review?

考慮到這一特定信用所發生的情況，是否有任何早期跡象表明，在您進行審查時，您可能會看到該投資組合中的其他壓力領域？

Or is it still too early to tell?

還是現在說還太早？

So Damon, our cursory review on top, and we focused -- and this was -- the problem we have was in the livestock area, so we focused initially in this are.

達蒙，我們粗略地回顧了上面的內容，我們重點關注——這是——我們遇到的問題是在畜牧領域，所以我們最初關注的是這一領域。

And the cursory review at the outset shows that we feel very good about where we stand.

一開始的粗略回顧表明，我們對自己的立場感到非常滿意。

That being said, there's more work to do on it, not only by us, but we'll also bring in a third party just to validate what we've seen.

話雖如此，我們還有更多工作要做，不僅是我們自己，而且我們還將引入第三方來驗證我們所看到的內容。

As it relates to the rest of the portfolio, Doug, maybe you can talk about what we see.

由於它與投資組合的其餘部分相關，Doug，也許你可以談談我們所看到的。

Because this only -- livestock only represents about a third of the portfolio, correct?

因為牲畜只佔投資組合的三分之一左右，對嗎？

Yeah.

是的。

Damon, good morning.

達蒙，早安。

It's Doug.

是道格。

So you're right, $200 million portfolio spread across 40 or so relationships, consisting of a pretty well-balanced mix of agricultural real estate, row crop, and livestock collateral to farm operations really throughout the Midwest here.

所以你是對的，2 億美元的投資組合分佈在40 個左右的關係中，其中包括農業房地產、中耕作物和牲畜抵押品的相當均衡的組合，這些抵押品實際上遍及整個中西部地區的農場經營。

Many of these have been long-term strong performing clients of our team.

其中許多人都是我們團隊長期表現出色的客戶。

And listen, I want to make sure we reiterate, this is a credit tool that we were monitoring.

聽著，我想確保我們重申，這是我們正在監控的信貸工具。

We had good historical financial information.

我們擁有良好的歷史財務資訊。

We were receiving regular collateral and financial information and reports.

我們定期收到抵押品和財務資訊和報告。

It's just the irregularities as it relates to the information that was revealed and disclosed and information that we received in early December that caused the problem here.

這只是與已披露和披露的資訊以及我們在 12 月初收到的資訊相關的違規行為導致了這裡的問題。

So what we're doing now is simply just reaffirming our risk in the portfolio and intensifying the inspections and the collateral audits that we have historically done.

因此，我們現在所做的只是重申我們在投資組合中的風險，並加強我們歷來所做的檢查和附帶審計。

Got it.

知道了。

Okay.

好的。

Thank you.

謝謝。

And then, just lastly, on the tax credit line item, Keene.

最後，關於稅收抵免項目，基恩。

Obviously, very strong fourth quarter.

顯然，第四季非常強勁。

As you look at the full year of '24, do you have a targeted range of what we could expect, knowing that the fourth quarter tends to be the strongest of them?

當您回顧 24 年全年時，您知道第四季度往往是其中最強勁的，您是否有我們可以預期的目標範圍？

Yeah.

是的。

Just a reminder, I think we were negative year to date until we got here.

只是提醒一下，我認為在我們到達這裡之前，今年迄今為止我們的表現都是消極的。

So fourth quarter was maybe even a little bit more robust.

因此，第四季的表現可能更加強勁。

But I think net-net, we're expecting roughly $10 million through that line item for next year.

但我認為，我們預計明年該專案的收入約為 1000 萬美元。

And I think we'll -- with what we're expecting on CDE and private equity, we'll get almost back to the level of income, maybe slightly weaker, through that line item if we don't sell SBA loans and then an opportunity to get back there or exceed it if we decide to execute on any SBA loan sales like we did last year.

我認為，按照我們對 CDE 和私募股權的預期，如果我們不出售 SBA 貸款，那麼透過該項目，我們將幾乎恢復到收入水平，也許會稍微弱一些，然後如果我們決定像去年那樣執行任何SBA 貸款銷售，就有機會回到或超越它。

Got it.

知道了。

Okay.

好的。

That's all that I had for now.

這就是我現在所擁有的一切。

Thank you.

謝謝。

Thanks, Damon.

謝謝，達蒙。

(Operator Instructions) Brian Martin, Janney.

（操作員說明）Brian Martin，Janney。

Hey, guys.

大家好。

Good morning.

早安.

Hey, Keene, just on that last question on the fee income line, outside of the tax credit, I think the -- were you referring to the other line as far as what you said, Mike?

嘿，基恩，關於費用收入線的最後一個問題，在稅收抵免之外，我認為——就你所說的而言，你指的是另一條線嗎，麥克？

You were trying -- just misunderstood what you're saying there as far as getting back to even or how you're thinking about that.

你正在嘗試——只是誤解了你所說的關於回到平衡或你如何思考這一點。

Yeah.

是的。

I think, in total, Brian, we're thinking about getting back to even.

布萊恩，我認為，總的來說，我們正在考慮恢復平衡。

I guess, if you stripped out the SBA loan sales and you have $10 million of tax credit and the numbers on both CDE and PE going through other that I mentioned a couple of million each, I think that basically gets you back to comparable levels for 2023.

我想，如果你剔除SBA 貸款銷售，並且你有1000 萬美元的稅收抵免，並且CDE 和PE 的數字都經過我提到的各幾百萬美元，我認為這基本上可以讓你回到可比較的水平2023 年。

And then if you sold SBA loans, again, that would get you back to the full year level or exceed.

然後，如果您再次出售 SBA 貸款，這將使您恢復到全年水平或超過。

Okay.

好的。

You're talking total fee income, not just that total other line, just to be clear.

需要明確的是，您所說的是總費用收入，而不僅僅是其他行的總收入。

So yeah, I'm talking -- yes, both.

所以是的，我說的是——是的，兩者都是。

Correct.

正確的。

Okay.

好的。

Got you.

明白你了。

Okay.

好的。

And one question, the tax rate, I think you guys mentioned was a bit lower this quarter.

還有一個問題，我想你們提到的稅率本季有點低。

I guess, going forward, revert back to low -- the 22% range.

我想，展望未來，會回到低點——22% 的範圍。

Is that fair?

這樣公平嗎？

We're actually right around that 21% effective tax rate for '24, with some state planning and some other things that have worked through.

事實上，我們在 24 年的有效稅率是 21% 左右，一些國家規劃和其他一些事情已經完成。

There's a point lower for the upcoming year that we think will continue.

我們認為明年會出現一個較低的點，這一點將會持續下去。

So 21% is a good number for the year.

所以 21% 對於今年來說是一個不錯的數字。

Okay.

好的。

And then just back to the margin for just one minute, Keene, your comments, I think I heard what you talked about on the asset sensitivity side with the rate cuts, what it does to the loan side.

然後回到邊際，基恩，你的評論，我想我聽到了你在降息的資產敏感性方面所談論的內容，以及它對貸款方面的影響。

Can you just walk back through what you said on the deposit side, what the offset is or if rates are going lower?

您能否回顧一下您在存款方面所說的內容，抵銷額是多少，或者利率是否會降低？

Yeah, it's on that deposit service charge line item and 25 basis points obviously affects the earnings credit rate, and that's about $4 million annually or $1 million a quarter for every quarter-point cut.

是的，在存款服務費項目上，25 個基點顯然會影響收益信用率，每降低 25 個基點，每年約 400 萬美元，或每季約 100 萬美元。

So I think that proportion is roughly half of the compression on net interest income.

所以我認為這個比例大約是淨利息收入壓縮的一半。

So it doesn't totally mute it, but it makes it more manageable and gives us the opportunity to grow through it.

因此，它並沒有完全消除它，但它使它更易於管理，並為我們提供了透過它成長的機會。

Yes, okay.

是的，好的。

And your commentary was that the -- I guess, you think you can grow through that or stabilize it absent rate cuts, otherwise, maybe it's a bit lower depending on the timing of the rate cuts or how many rate cuts.

你的評論是——我想，你認為你可以在不降息的情況下實現增長或穩定它，否則，可能會低一點，這取決於降息的時間或降息的次數。

Correct.

正確的。

I think the view is that -- I mean, we have continued status quo on deposit pricing in my comments of 5 basis points of drift.

我認為觀點是——我的意思是，在我關於 5 個基點漂移的評論中，我們繼續維持存款定價的現狀。

And that rate of deposit repricing has been improving.

存款重新定價率一直在改善。

So it continues to reprice higher, but at a lower rate.

因此，它繼續以較低的價格重新定價。

I would say two factors in the first quarter are we're going to probably have some unfavorable DDA remixing just with seasonal trends at the fourth quarter, and then the day count.

我想說，第一季的兩個因素是，我們可能會在第四季的季節性趨勢和日數統計中出現一些不利的 DDA 重新混合。

So like I said, sometime mid-year, although we've got margin drift and depending on how growth shapes up, there's a chance that we'll be able to start stacking positive net interest income dollars on top of that.

所以就像我說的，在年中的某個時候，儘管我們有利潤率漂移，並且取決於成長的方式，但我們有機會開始在此基礎上累積正的淨利息收入。

It's just a matter of how those factors interplay, but we've been pretty good with our ability to forecast net interest income even as early as after the first-quarter events of last year and we hit stable net interest income per dollars.

這只是這些因素如何相互作用的問題，但我們早在去年第一季事件之後就預測淨利息收入的能力就相當出色，並且我們達到了穩定的每美元淨利息收入。

I think we're still stable from here.

我認為我們現在仍然穩定。

It's just without -- with the day count disadvantage at this point, Q4 to Q1, you're going to reset a little bit lower and then we'll get back to more improvement.

只是沒有--在這一點上，從第四季度到第一季度，您將重置一點點，然後我們將回到更多改進。

Got you.

明白你了。

And the monthly margin in December, did you give what that was?

12 月份的月度保證金，您給了多少嗎？

I didn't give -- I might have given what it was, but it was 121 -- sorry, 421.

我沒有給——我本來可以給的，但它是 121——抱歉，是 421。

So it's only a few basis points lower than where we were in the quarter.

因此，這只比本季的水平低幾個基點。

And November and December were right on top of each other.

11 月和 12 月正好相反。

So from that perspective, we were in pretty good shape.

所以從這個角度來看，我們的狀態非常好。

And margin in the fourth quarter was a little bit more diluted because of the deposit experience we had with the inability to time out the brokered CDs or pay those down just in time.

第四季度的保證金被稀釋了一些，因為我們的存款經驗是無法使經紀CD超時或及時支付這些存款。

So I think margin in and of itself in the quarter was maybe a little bit more muted than we thought it would be and maybe that will shift a little bit with positive mix here in the first quarter.

因此，我認為本季的利潤率本身可能比我們想像的要小一些，也許這種情況會隨著第一季的積極組合而發生一些變化。

Got you.

明白你了。

Okay.

好的。

And then last one for me was just on the capital levels and the optionality you have there.

最後一個對我來說只是關於資本水準和那裡的選擇權。

Just how you're thinking about the capital utilization in 2024 as far as -- I think from a buyback perspective, M&A, just in general, organic growth, how you're thinking about that.

您如何看待 2024 年的資本利用——我認為從回購的角度來看，併購，一般來說，有機增長，您是如何考慮的。

Yeah, this is Jim.

是的，這是吉姆。

I would say that, primarily, it's going to be for growth.

我想說，這主要是為了成長。

Right now, we've got a lot on our plate relative to continue growing our business.

目前，我們有很多工作要做，以繼續發展我們的業務。

We've got the core conversion, what have you.

我們已經完成了核心轉換，你還有什麼。

So M&A, certainly, we're talking -- we'll always talk.

所以，併購，當然，我們正在談論——我們將永遠談論。

But certainly, M&A is further down the list.

但可以肯定的是，併購的排名更靠後。

And I'm not sure the buybacks come into play or not this year, but really, it's about focusing on our -- utilizing for our growth going forward.

我不確定今年的回購是否會發揮作用，但實際上，這是關於我們的——利用我們未來的成長。

Got you.

明白你了。

Okay, perfect.

好的，完美。

Thank you for taking the questions.

感謝您提出問題。

You bet.

你打賭。

Thanks, Brian.

謝謝，布萊恩。

Andrew Liesch, Piper Sandler.

安德魯·利施，派珀·桑德勒。

Hey, guys.

大家好。

Good morning.

早安.

Just a question on the growth in the specialty deposits.

只是關於專業存款成長的問題。

I guess, what's the outlook for that business?

我想，這項業務的前景如何？

I know you guys have been spending a lot of money and investing in that.

我知道你們已經花了很多錢並對此進行了投資。

And just -- is the growth going to be lumpy?

只是——成長會不穩定嗎？

Are there wins in one quarter or the next?

上一個季度或下一個季度有勝利嗎？

Is there any seasonality there?

那裡有季節性嗎？

Just curious how we should be looking at how those balances trend.

只是好奇我們應該如何看待這些平衡趨勢。

Hey, Andrew.

嘿，安德魯。

It's Scott.

這是斯科特。

Good morning.

早安.

I think the overall comment is, yes, we do expect those to continue to grow, I think, steady.

我認為總體評論是，是的，我們確實預計這些將繼續穩定增長。

The seasonality that exists amongst really the three main business lines -- there's property management, third-party escrow, and community associations -- mainly in the community associations, where those accounts generally fund up early in the year and then they're depleted throughout the year as expenses are paid and then reopened again in the fourth quarter.

季節性存在於三大主要業務領域——物業管理、第三方託管和社區協會——主要是社區協會，這些帳戶通常在年初籌集資金，然後在整個過程中耗盡。季度重新開放。

So that's the main seasonality.

這就是主要的季節性。

But I think if you look at that business over time, you'll see that it's also growing.

但我認為，如果你隨著時間的推移觀察該業務，你會發現它也在成長。

So I think we view those very favorably from a cost and a relationship perspective and we'll continue to invest and grow.

因此，我認為從成本和關係的角度來看，我們非常看好這些，我們將繼續投資和發展。

Got it.

知道了。

You've covered all my other questions.

你已經回答了我所有其他問題。

I'll step back.

我會退後一步。

Thanks.

謝謝。

I would now like to turn the call over to Jim Lally for closing remarks.

我現在想將電話轉給吉姆·拉利 (Jim Lally) 致閉幕詞。

Well, thank you very much, and thank you all for joining us this morning and for your interest in our company.

好的，非常感謝大家，感謝大家今天早上加入我們以及對我們公司的興趣。

And we look forward to speaking to you again after the first quarter.

我們期待在第一季之後再次與您交談。

Have a great day.

祝你有美好的一天。

This concludes today's call.

今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。