Enterprise Financial Services Corp (EFSC) 2026 Q1 法說會逐字稿

Good day, everyone, and welcome to Enterprise Financial Services Corp. first quarter 2026 earnings conference call. Please note that this call is being recorded. (Operator Instructions)

各位大家好，歡迎參加 Enterprise Financial Services Corp. 2026 年第一季財報電話會議。請注意，本次通話將被錄音。(接線員指示)

I'd now like to hand the call over to Jim Lally, President and CEO. Please go ahead.

現在我想把電話交給總裁兼執行長 Jim Lally。請開始。

Thank you all very much for joining us this morning, and welcome to our 2026 first quarter earnings call. Joining me this morning is Keene Turner, EFSC's Chief Financial Officer and Chief Operating Officer; and Doug Bauche, Chief Banking Officer of Enterprise Bank & Trust.

非常感謝各位今天早上加入我們，歡迎參加我們 2026 年第一季財報電話會議。今天早上與我一同出席的有：EFSC 財務長兼營運長 Keene Turner，以及 Enterprise Bank & Trust 的首席銀行業務長 Doug Bauche。

Before we begin, I would like to remind everybody on the call that a copy of the release and accompanying presentation can be found on our website. The presentation and earnings release were furnished on SEC Form 8-K yesterday. Please refer to slide 2 of the presentation titled Forward-Looking Statements and our most recent 10-K for reasons why actual results may vary from any forward-looking statements that we make today.

在開始之前，我想提醒各位與會者，新聞稿及隨附簡報可在我們的網站上找到。該簡報與財報新聞稿已於昨日以 SEC Form 8-K 提交。請參閱簡報第 2 頁「前瞻性陳述」，以及我們最新的 10-K，以了解為何實際結果可能與我們今天所做的任何前瞻性陳述有所差異。

Our financial scorecard begins on slide 3. The solid financial performance that we've generated over the past several years continued into the first quarter of 2026. For the quarter, we earned $1.30 per diluted share compared to a seasonally strong $1.45 in the linked quarter and $1.31 in the first quarter of 2025.

我們的財務成績單從第 3 頁開始。過去幾年我們所創造的穩健財務表現，在 2026 年第一季持續延續。本季稀釋後每股盈餘為 1.30 美元，較上一季季節性強勁的 1.45 美元，以及 2025 年第一季的 1.31 美元相比。

This level of performance produced a return on assets of 1.16% and a pre-provision ROAA of 1.65%. I would characterize our performance in the quarter as, solid and on plan. Net interest income was relatively stable when compared to the linked quarter at $166 million, while net interest margin expanded 2 basis points to 4.28%.

此一表現水準帶來 1.16% 的資產報酬率（ROA）以及 1.65% 的提存前平均資產報酬率（pre-provision ROAA）。我會將本季表現形容為穩健且符合計畫。與上一季相比，淨利息收入相對穩定，為 1.66 億美元；同時淨利差擴大 2 個基點至 4.28%。

This reflects both better seasonal performance in our deposit balances and net interest margin expansion resulting from our relationship-oriented business model where our clients receive value-added service from our teams in return for a few extra basis points, when it comes to loan and deposit pricing.

這反映了我們存款餘額較佳的季節性表現，以及在我們以關係為導向的商業模式下所帶來的淨利差擴張：我們的團隊為客戶提供加值服務，作為回報，在貸款與存款定價上可多取得幾個基點。

Our well-positioned balance sheet continues to be the strength of our company, as it provides for great flexibility with respect to capital planning. Capital levels at quarter-end remained stable and strong with total stockholders' equity of $2 billion and a tangible common equity to tangible assets ratio of 9%.

我們定位良好的資產負債表仍是公司的優勢，因其在資本規劃方面提供了高度彈性。季末資本水準維持穩定且強勁，股東權益總額為 20 億美元，有形普通股權益對有形資產比率為 9%。

At this level of TCE, we were able to produce a return on tangible common equity of 12.53%. Our strong returns profile allowed our tangible book value per share to remain level at $41.38 despite the fact that we utilized approximately $27 million of capital to repurchase 483,000 shares at an average price of $56.13. In addition to this, given the strength of our earnings and our confidence in our continued execution, we increased the dividend by $0.01 per share for the second quarter of 2026 to $0.34 per share.

在此一有形普通股權益（TCE）水準下，我們得以達成 12.53% 的有形普通股權益報酬率。我們強勁的報酬表現使每股有形帳面價值維持在 41.38 美元，儘管我們動用約 2,700 萬美元資本，以平均價格 56.13 美元回購 483,000 股。此外，鑑於我們獲利的強度以及對持續執行力的信心，我們將 2026 年第二季股利每股提高 0.01 美元至每股 0.34 美元。

Turning to slide 4, you will see that loans dipped slightly in the quarter. Three things led to the slight decrease. The first is that several significant closings that we expected to see in Q1 have slid into the second quarter and have closed or will close in the coming weeks. The second reason for this decline was a $100 million pay-down in our low-income housing tax credit portfolio.

接著看第 4 頁，您會看到本季貸款略有下滑。有三項因素導致這個小幅下降。第一，我們原本預期在第一季完成的幾筆重要結案已延後至第二季，並已完成或將在未來幾週內完成。第二個原因是我們低收入住宅稅額抵免（LIHTC）投資組合出現 1 億美元的還款（pay-down）。

These pay-downs happen annually and are the proceeds from successful sales that occurred in the fourth quarter of 2025. Another positive from these payoffs is, the fact that the majority of these loans were made in 2021 and 2022 and the fixed rates earned on these loans are lower than what we can earn on this cash in our investment portfolio today.

這些還款每年都會發生，來源是 2025 年第四季成功出售所取得的款項。這些清償的另一個正面因素是：其中多數貸款是在 2021 年與 2022 年承作，這些貸款的固定利率低於我們目前將這些現金配置於投資組合所能取得的收益率。

The final contributor was the sale of $25 million of SBA loans in the quarter, which produced a gain of $1.4 million. Doug will provide much more color on the performance of our markets and businesses in his comments. Our diversified deposit base continues to be a differentiator for us. We did experience a typical first quarter deposit outflows due to our heavy concentration of commercial-oriented accounts.

最後一項因素是本季出售 2,500 萬美元的 SBA 貸款，帶來 140 萬美元的收益。Doug 將在他的發言中，對我們各市場與業務的表現提供更多說明。我們多元化的存款基礎仍是我們的差異化優勢。由於我們商業導向帳戶占比較高，第一季確實出現典型的存款流出。

We've worked extremely hard to blunt this trend through growth of our national deposit verticals as well as through market and business diversification within both the commercial bank and our more granular business banking and consumer relationships. The composition of deposits also remained stable as our percentage of DDA to total deposits remained at 33%.

我們非常努力透過全國性存款垂直業務的成長，以及在商業銀行、較細分的企業金融與消費者關係中進行市場與業務多元化，來減緩此一趨勢。存款結構亦維持穩定，活期存款（DDA）占總存款比重仍為 33%。

These trends were aided by a continued reduction in the overall cost of deposits to 1.52%, a 12 basis points drop in the quarter and 31 basis points when compared to the first quarter of 2025. It was on our 2025 first quarter earnings call that we first spoke of the seven Southern California loans that ultimately landed in OREO. Our contention a year ago was that we would favorably work through these loans without a loss.

在這些趨勢的帶動下，存款總成本持續下降至 1.52%，本季下降 12 個基點，較 2025 年第一季下降 31 個基點。在我們 2025 年第一季財報電話會議上，我們首次提到最終轉入 OREO 的南加州 7 筆貸款。我們一年前的主張是，我們將能以有利方式處理這些貸款而不致產生損失。

Today, I'm pleased to report that we continue to make progress on this and currently have four of these properties under contract, representing total OREO balances of $46 million with great progress on the other three properties being made. I would expect to report positive further progress in the remaining quarters of 2026. Additionally, the remainder of the portfolio continues to perform as expected. Keene will make additional comments about asset quality and provision expense in his comments.

今天，我很高興報告我們在此方面持續取得進展，目前其中 4 項物件已簽約，代表 OREO 餘額合計 4,600 萬美元；另外 3 項物件也正取得良好進展。我預期在 2026 年其餘季度中，將能回報更多正向進展。此外，投資組合其餘部分仍如預期般表現。Keene 將在他的發言中就資產品質與提存費用提供補充說明。

Turning to slide 5, you will see our priorities for 2026. We made significant strides in asset quality improvement during the quarter, and I'm confident that this will continue throughout 2026, highlighted by the expected sale of the seven Southern California properties that are currently in OREO. I'm still bullish on overall mid-single-digit balance sheet growth for the year.

接著看第 5 頁，您會看到我們 2026 年的優先事項。本季我們在改善資產品質方面取得顯著進展，我有信心這將在 2026 年持續推進，其中重點包括預期出售目前列於 OREO 的南加州 7 項物件。我仍看好今年資產負債表可達到中個位數的整體成長。

Our ability to produce well-priced diversified deposits has been proven over the last several years, and I have a great degree of confidence that this will continue throughout 2026. However, the longer that uncertainty is, the byproduct of the conflict in Iran, borrower sentiments may be cautious, which could impact future loan growth.

過去幾年，我們產出定價良好且多元化存款的能力已獲證明，我對此在 2026 年持續延續抱持高度信心。然而，若不確定性持續存在，且其源自伊朗衝突的外溢效應，借款人情緒可能趨於謹慎，進而影響未來貸款成長。

Over the last few weeks, I've had the opportunity to visit with many clients representing a diverse array of businesses and industries. They continue to perform well, but their confidence to make large investments in capital expenditures or to think about any type of strategic hires or M&A is truly day-to-day.

在過去幾週，我有機會拜訪許多客戶，他們代表多元的企業與產業。他們的營運表現仍然良好，但對於是否進行大額資本支出投資、是否考慮任何策略性招募或併購（M&A），其信心確實是以每天的情勢變化為依歸。

Like I stated on previous calls, entrepreneurs need to be able to see 90 to 120 days into the future to confidently make these strategic decisions and the recent volatility in the current environment could have an impact. Obviously, a quick resolution or stabilization of the current state, changes this immediately.

如同我在先前電話會議所說，企業家需要能看見未來 90 到 120 天，才能有信心做出這些策略性決策，而近期環境的波動可能帶來影響。顯然，若當前情勢能迅速解決或趨於穩定，這種情況將立即改變。

Finally, like many of our clients, we too are focused on efficiency gains through automation and expansion of our existing technology framework. This is a daily opportunity for our company, and we are excited about the progress we are making. Overall, I'm very pleased with our results for the first quarter of 2026.

最後，和我們許多客戶一樣，我們也專注於透過自動化以及擴展既有的技術架構來提升效率。這對我們公司而言是每天都存在的機會，我們對目前取得的進展感到振奮。整體而言，我對我們在2026年第一季的表現非常滿意。

We are positioned extremely well for just about any environment. We have wonderful markets, a growing diversified deposit base and an extremely strong balance sheet. We have used these tools to grow tangible book value per share over 10% annually for the last 14 years and are in great shape to accomplish this again in 2026.

我們在幾乎任何環境下都具備極佳的競爭位置。我們擁有優質的市場、持續成長且多元化的存款基礎，以及極為強健的資產負債表。過去14年，我們運用這些優勢使每股有形帳面價值每年成長超過10%，而我們也具備在2026年再次達成此目標的良好條件。

With that, I would like to turn the call over to Doug Bauche. Doug?

接下來，我想把電話會議交給Doug Bauche。Doug？

Thank you, Jim, and good morning, everyone. Turning to slide 6, you'll see the breakdown of our loan portfolio by asset class. Successful attraction and on-boarding of new clients across our footprint drove $97 million in Q1 loan growth in our core C&I and owner-occupied real estate portfolios and $21 million in loan growth from our Life Insurance Premium Finance division.

謝謝你，Jim，各位早安。請看第6頁投影片，您會看到我們貸款組合按資產類別的分布。在我們的服務版圖內，成功吸引並導入新客戶，帶動第一季核心商業與工業（C&I）以及自用型不動產貸款組合增加9,700萬美元，另由我們的人壽保險保費融資部門帶來2,100萬美元的貸款成長。

Those advancements, however, were largely offset by the anticipated $101 million reduction in our low-income housing tax credit portfolio via the successful completion of affordable housing projects and sale of state tax credits. The weighted average fixed coupon on the $101 million in tax credit loans paid off in the quarter was 3.29%, providing us the opportunity for redeployment of that capital at higher earning yields in the current environment.

然而，這些進展大多被我們低收入住宅稅額抵免（LIHTC）組合如預期減少1.01億美元所抵銷，原因是可負擔住宅專案順利完工，以及州稅額抵免的出售。本季償還的1.01億美元稅額抵免貸款，其加權平均固定票息為3.29%，使我們得以在目前環境下，將該資本重新配置至收益率更高的用途。

Furthermore, as Jim mentioned, we executed on the sale of $25 million of SBA guaranteed loans in the quarter. The sponsor finance portfolio declined $33 million in the quarter as payoffs from the sale of sponsor-owned portfolio companies exceeded new originations. Overall, I am pleased with the mix and breadth of our loan funding pipeline, and I remain cautiously optimistic about our ability to achieve our loan growth objectives for the year. The elevated geopolitical risks, Iran conflict and market complexities may, however, result in our organic growth being more uneven over the next couple of quarters.

此外，如Jim所提及，我們在本季完成出售2,500萬美元的SBA擔保貸款。本季贊助商融資（sponsor finance）組合減少3,300萬美元，因出售由贊助商持有的投資組合公司所帶來的回收款超過新增承作。整體而言，我對我們貸款資金管線的組合與廣度感到滿意，並對我們達成全年貸款成長目標仍保持審慎樂觀。不過，升高的地緣政治風險、伊朗衝突以及市場複雜性，可能使我們未來幾季的內生成長更為不均衡。

Slide 7 demonstrates the continued strong diversity of our loan portfolio across our geographic markets and specialty business lines. The specialty lending portfolio at just over $4 billion, inclusive of tax credit lending, sponsor finance, SBA and life insurance premium finance has remained relatively flat year over year. However, our core geographic markets in the Midwest and Southwest have delivered 6% and 25% year-over-year growth rates, respectively, which includes loans acquired in the branch acquisition that closed in the fourth quarter.

第7頁投影片顯示，我們的貸款組合在各地理市場與專業業務線之間，仍維持強勁的多元性。包含稅額抵免放款、贊助商融資、SBA以及人壽保險保費融資在內的專業放款組合規模略高於40億美元，年對年大致持平。然而，我們在中西部與西南部的核心地理市場，年對年成長率分別達6%與25%，其中包含於第四季完成分行收購所取得的貸款。

In the West region, our investments in new talent in 2025 in Southern California are showing positive momentum. Leveraging market disruption, we are experiencing a growing pipeline of quality CRE and C&I holistic relationship opportunities that will translate to solid organic growth during the year.

在西部地區，我們於2025年在南加州投入新人才的策略正展現正向動能。藉由市場動盪所帶來的機會，我們正看到高品質商用不動產（CRE）與C&I整體關係型商機的管線持續增加，並將在今年轉化為穩健的內生成長。

Turning to deposits on slides 8 and 9. Reductions in the quarter within the core geographic portfolio reflect anticipated seasonal outflows and client balances of $272 million, mainly associated with distributions, bonuses, and tax payments. A material portion of this reduction was offset by continued growth within the national deposit verticals, which grew by $187 million or roughly 20% annualized in Q1.

接著看第8與第9頁投影片的存款。本季核心地理組合的下降反映了預期的季節性資金流出，以及客戶餘額減少2.72億美元，主要與分配款、獎金及稅款支付相關。此一減少的相當部分，被全國性存款垂直業務的持續成長所抵銷；該業務在第一季增加1.87億美元，約為年化20%的成長。

On a year-over-year basis, total client deposits, excluding brokered funds, are up 10%. The national deposit verticals profiled on slide 10 continue to provide differentiated and attractive sources of funding while also diversifying our overall deposit base and somewhat softening the seasonality of our other channels. With over $4 billion in deposits across our Property Management, Community Association, and Legal and Escrow businesses, the average earnings credit is an attractive 2.59%, considering no incremental expenses in branches or branch personnel.

以年對年來看，剔除經紀存款後的客戶存款總額成長10%。第10頁投影片所示的全國性存款垂直業務，持續提供差異化且具吸引力的資金來源，同時也使我們整體存款基礎更加多元，並在一定程度上緩和其他通路的季節性波動。物業管理、社區協會以及法律與託管（Legal and Escrow）業務合計存款超過40億美元，平均收益抵減（earnings credit）為2.59%，且無需在分行或分行人員方面增加額外費用，因而相當具吸引力。

Lastly, slide 11 profiles the mix of our core deposit base, which continues to be well diversified and highly relationship-oriented. With just over 33% of these accounts being noninterest-bearing and 80% of them using some form of Treasury Management or Online Banking, they offer operational stability and a solid base from which to expand other fee-generating revenue streams, including card and merchant services.

最後，第11頁投影片呈現我們核心存款基礎的組合，仍維持良好多元且高度關係導向。這些帳戶中，略高於33%為不計息存款，且其中80%使用某種形式的財資管理或網路銀行服務，因此能提供營運穩定性，並形成擴展其他手續費型收入來源（包括卡片與商戶服務）的穩固基礎。

Now I'll turn the call over to Keene Turner for his comments.

接下來我把電話會議交給Keene Turner發表評論。

Thanks, Doug, and good morning, everyone. Turning to slide 12. We reported earnings per share of $1.30 in the first quarter on net income of $49 million. Excluding certain nonrecurring items, earnings per share on an adjusted basis was $1.31 compared to adjusted earnings per share of $1.36 in the linked quarter.

謝謝，Doug，各位早安。請看第12頁投影片。我們第一季淨利為4,900萬美元，每股盈餘為1.30美元。排除若干非經常性項目後，調整後每股盈餘為1.31美元，較上一季（連續季度）的調整後每股盈餘1.36美元下降。

Pre-provision earnings were $70 million, a decline of $4 million from the linked quarter. The $0.05 decrease in adjusted earnings per share and the $4 million decrease in pre-provision earnings was primarily due to lower tax credit income and the impact of two fewer days on net interest income. The decline in tax credit income was expected as it is typically highest in the fourth quarter of the year.

提列前盈餘（pre-provision earnings）為7,000萬美元，較上一季減少400萬美元。調整後每股盈餘減少0.05美元，以及提列前盈餘減少400萬美元，主要是因稅額抵免收入較低，以及淨利息收入受到少了兩個營業日的影響。稅額抵免收入的下降在預期之內，因其通常在年度第四季達到高峰。

The provision for credit losses decreased from the linked quarter due to the decline in both net charge-offs in total loans. The primary driver of the provision this quarter was a qualitative factor that was added to recognize the potential impact on credit losses from the conflict in Iran.

由於總貸款的淨沖銷（net charge-offs）下降，本季信用損失準備金提列較上一季減少。本季提列的主要驅動因素，是新增的一項質化因子，用以反映伊朗衝突可能對信用損失造成的影響。

The increase in noninterest expense in the period was mainly due to typical seasonal increase in compensation and benefits and to a lesser extent, the first full quarter of run rate expenses from the branch acquisition that closed last October. These increases were partially offset by a decline in onetime acquisition costs related to the acquisition.

本期非利息費用的增加，主要來自薪酬與福利的典型季節性上升；其次是去年10月完成的分行收購所帶來的第一個完整季度常態化費用（run rate expenses）。上述增加部分被與該收購相關的一次性收購成本下降所抵銷。

Turning to slide 13 and with more details to follow on slide 14. Net interest income for the first quarter was $166 million, a decrease of $2 million from the fourth quarter, which was largely attributable to fewer days in the first quarter. Interest income declined $7 million from the prior period. The largest contributor was an $8 million decrease in loan interest as our yields fell 13 basis points on variable rate resets amidst Fed easing, along with a $17 million decline in average loan balances.

請看第13頁投影片，並在第14頁投影片提供更多細節。第一季淨利息收入為1.66億美元，較第四季減少200萬美元，主要歸因於第一季天數較少。利息收入較前期減少700萬美元。最大因素是貸款利息減少800萬美元，因在聯準會寬鬆背景下，浮動利率重設使我們的收益率下降13個基點，同時平均貸款餘額減少1,700萬美元。

This was partially offset by $1.9 million of additional earnings in the investment portfolio with average balances higher by $159 million and an 11-basis-point improvement in the securities yield. The rate on loans booked in the quarter was 6.58% and the average tax equivalent purchase yield on investments was 4.51%, both of which are additive to their respective portfolios.

上述影響部分被投資組合額外增加的190萬美元收益所抵銷，因平均餘額增加1.59億美元，且證券收益率提升11個基點。本季入帳貸款利率為6.58%，投資的平均稅當量購買收益率為4.51%，兩者皆對各自的投資組合收益具有正向貢獻。

Interest expense declined $5 million compared to the linked quarter as a result of lower funding costs. Interest expense on deposits decreased by $5.5 million as average interest-bearing balances declined $89 million and the rate on interest-bearing deposits moved 15 basis points lower. This was partially offset by higher interest expense on customer repo accounts due to seasonally higher balances.

由於資金成本下降，利息費用較上一季減少500萬美元。存款利息費用減少550萬美元，因平均計息餘額減少8,900萬美元，且計息存款利率下調15個基點。但由於季節性餘額較高，客戶回購協議（repo）帳戶的利息費用上升，部分抵銷了上述下降。

Our net interest margin for the first quarter was 4.28%, an increase of 2 basis points in the quarter. Our cost of interest-bearing liabilities declined 15 basis points, led by lower rates on non-maturity deposits and borrowings, which more than offset the 9-basis-point reduction in yield on earning assets.

我們第一季的淨利差為4.28%，較上季增加2個基點。我們的計息負債成本下降15個基點，主要受非到期存款與借款利率下降帶動，且其降幅足以抵銷生息資產收益率下降9個基點的影響。

Net interest income remained slightly asset-sensitive, primarily in parallel interest rate simulation with each 0.25 point cut in rates reducing net interest income $1 million to $2 million per quarter or a couple of basis points of net interest margin. Including deposit-related noninterest expense in this analysis, we modeled that we are effectively neutral to modestly liability-sensitive as we continue to have success growing the related deposit balances.

淨利息收入仍略偏資產敏感，主要體現在平行利率情境模擬中：每降息0.25個百分點，將使每季淨利息收入減少100萬至200萬美元，或使淨利差下降約數個基點。若將與存款相關的非利息費用納入此分析，我們的模型顯示，隨著我們持續成功擴增相關存款餘額，我們的利率敏感度實際上接近中性至略偏負債敏感。

We anticipate the recent steepening of the yield curve will favorably impact pricing on fixed rate loans and the reinvestment of cash flows in the investment portfolio. With the Fed seemingly on hold, we expect our net interest margin to remain in the low to mid 4.2%. As we execute on our growth plans for 2026 and remain committed to disciplined pricing on both loans and deposits, we look for net interest margin to be stable in this range with consistent growth in net interest income over the next few quarters.

我們預期近期殖利率曲線的陡峭化，將有利於固定利率貸款的定價，以及投資組合中現金流的再投資。在聯準會看似暫停動作的情況下，我們預期淨利差將維持在4.2%出頭至4.2%中段。隨著我們推進2026年的成長計畫，並持續在貸款與存款兩端堅持紀律性定價，我們預期淨利差將在此區間保持穩定，且未來幾季淨利息收入將持續成長。

Slide 15 reflects our credit trends. Net charge-offs totaled $4.4 million in the first quarter compared to $20.7 million in the linked quarter. We made progress in the quarter reducing nonperforming assets with the full repayment of two loans and total principal repayments of $21 million on nonaccrual loans.

第15頁反映我們的信用趨勢。第一季淨沖銷為440萬美元，較上一季的2,070萬美元下降。本季我們在降低不良資產方面取得進展，兩筆貸款已全額償還，且非應計貸款的本金償還合計2,100萬美元。

We also foreclosed on the last property related to our largest nonperforming relationship and are actively working out these properties. As Jim noted, four of the seven properties in this relationship are under contract, and we expect contracts for the other three properties in the near future.

我們也已對與我們最大不良往來關係相關的最後一處房產完成止贖，並正積極進行這些房產的處置作業。如Jim所提，該關係中的七處房產已有四處簽約中，我們預期其餘三處房產也將在近期簽訂合約。

Net charge-offs totaled 15 basis points of average loans compared to 21 basis points for 2025. The provision for credit losses was $7.2 million in the period compared to $9.2 million in the linked quarter. The provision in the quarter was mainly due to net charge-offs and a qualitative adjustment to the allowance for potential impact of the Iran conflict.

淨沖銷占平均貸款比率為15個基點，較2025年的21個基點下降。本期信用損失準備為720萬美元，較上一季的920萬美元下降。本季提列主要來自淨沖銷，以及因伊朗衝突可能影響而對備抵提列所做的質性調整。

While we have not seen a direct impact on credit quality from the conflict that started at the end of February, we have recognized the impact that oil prices and market uncertainty can have on economic factors used to forecast losses in the loan portfolio. Slide 16 shows the allowance for credit losses. The ratio of allowance to total loans increased to 1.21% compared to 1.19% at the end of 2025. When adjusting for government guaranteed loans, the ratio increases to 1.32% of total loans, which shows the strength of our reserve coverage.

雖然我們尚未看到2月底開始的衝突對信用品質造成直接影響，但我們已認列油價與市場不確定性可能對用於預測貸款組合損失的經濟因素所帶來的影響。第16頁顯示信用損失備抵。備抵占總貸款比率上升至1.21%，高於2025年底的1.19%。若調整政府保證貸款後，該比率上升至總貸款的1.32%，顯示我們備抵覆蓋的強度。

On slide 17, first quarter noninterest income was $19.1 million. This was a $6.3 million reduction compared to the linked quarter. The decrease was primarily due to other real estate owned gains and seasonally strong tax credit income during the fourth quarter of 2025. The first quarter included two mitigants from higher income from private equity fund distributions and a gain on the sale of guaranteed SBA loans.

在第17頁，第一季非利息收入為1,910萬美元。較上一季減少630萬美元。下降主要因2025年第四季有其他不動產（OREO）處分利益，以及季節性較強的稅額抵減收入。第一季包含兩項抵銷因素：私募股權基金分配帶來較高收入，以及出售政府保證SBA貸款的處分利益。

Turning to slide 18. First quarter noninterest expense of $115 million was relatively comparable to the linked quarter as it included a full quarter of operating expenses related to the branch acquisition that closed in the fourth quarter. Noninterest expense in the fourth quarter included $2.5 million of onetime branch acquisition costs and a reversal of accrued FDIC special assessment.

接著看第18頁。第一季非利息費用為1.15億美元，與上一季大致相當，因其中包含第四季完成分行收購後所產生的完整一季營運費用。第四季非利息費用包含250萬美元的一次性分行收購成本，以及已提列FDIC特別評估費的回轉。

Excluding the impact of these nonrecurring items, noninterest expenses were $2.5 million higher than the linked quarter, which includes the first full quarter run rate of expenses from the acquisition. First quarter noninterest expense included seasonal impacts in compensation and benefits. Deposit costs were lower than the linked quarter by $1.5 million, which was largely driven by the expiration of certain allowances that were not utilized.

若排除這些非經常性項目的影響，非利息費用較上一季增加250萬美元，其中包含收購案費用的第一個完整季度的常態化費用水準。第一季非利息費用包含薪酬與福利的季節性影響。存款成本較上一季降低150萬美元，主要由於部分未被使用的津貼到期所致。

Other expenses decreased from the linked quarter, primarily due to a recovery of a credit card loss event that was incurred in the fourth quarter. The core efficiency ratio was 60.2% for the quarter compared to 58.3% in the linked quarter.

其他費用較上一季下降，主要因第四季發生的信用卡損失事件在本季獲得回收。本季核心效率比率為60.2%，較上一季的58.3%上升。

Our capital metrics are shown on slide 19. Tangible book value per share of $41.38 was relatively stable with the linked quarter. Strong first quarter earnings effectively offset the fair value reduction from the impact of higher interest rates on our available-for-sale securities portfolio. We continue to proactively manage excess capital, repurchasing 483,000 shares of common stock for approximately $27 million. At an average price of $56.13 per share, this was an attractive multiple of tangible book value.

我們的資本指標列於第19頁。每股有形帳面價值為41.38美元，與上一季相對持平。第一季強勁獲利有效抵銷了利率上升對可供出售證券投資組合公允價值下滑的影響。我們持續主動管理超額資本，回購48.3萬股普通股，金額約2,700萬美元。以每股56.13美元的平均價格計算，這相對於有形帳面價值而言是具吸引力的倍數。

Our tangible common equity ratio was 9%, stable with the linked quarter. The quarterly dividend was increased by $0.01 to $0.34 per share for the second quarter of 2026, continuing our record of increasing the dividend nine consecutive quarters.

我們的有形普通股權益比率為9%，與上一季持平。季度股利提高0.01美元至每股0.34美元，適用於2026年第二季，延續我們連續九個季度調升股利的紀錄。

This was a strong start to the year with a 1.2% return on average assets and a 13% return on average tangible common equity. We're well positioned with a strong earnings profile, balance sheet and capital position to support further organic growth across our markets.

今年開局強勁，平均資產報酬率為1.2%，平均有形普通股權益報酬率為13%。我們具備強勁的獲利結構、資產負債表與資本水位，足以支持在各市場進一步的內生成長。

I appreciate your attention today, and we'll now open the line for questions.

感謝各位今天的聆聽，接下來我們開放提問。

(Operator Instructions)

（接線員指示）

Jeff Rulis, D.A. Davidson.

Jeff Rulis，D.A. Davidson。

Thanks. Good morning.

謝謝。早安。

Good morning, Jeff.

早安，Jeff。

I'll tread lightly on the credit side. I know it's been an exercise in patience, but just to kind of go along the four properties that are under contract. I guess if you could touch on potential timing for sale? And then as we recall, I think those were pretty attractive. The real estate was really never questioned on the valuation. It's just a fight to get to them. And I guess -- so the question -- the second piece is any anticipated gains with those sales?

我會在信用面向上稍微保守一點。我知道這一直是需要耐心的過程，但就那四處已在簽約中的房產而言，想請你談談可能的出售時程？另外如我們所記得的，我認為那些條件相當不錯；不動產的估值其實從未受到質疑。只是要取得處置進展很不容易。所以第二個問題是：這些出售是否預期會有任何處分利益？

Yeah, I'll take that one. Jeff. So three of the four should transact yet here in the second quarter and the fourth one, later this year. And as it relates to the contracts we have in hand, they support how we've identified them in our financial statements.

好的，這題我來回答。Jeff。四處中的三處應該會在第二季完成交易，第四處則在今年稍晚。至於我們目前手上的合約，其條件支持我們在財務報表中對這些資產的認列方式。

Okay. And gains or losses, a little early to kind of --

好的。至於收益或損失，現在談可能有點早，算是--

It is early, but we feel confident about how we recognize things in the fourth quarter of last year and how things should settle out.

確實還早，但我們對於去年第四季如何認列，以及事情最終應該如何落定，感到有信心。

And on the other three properties, you sounded optimistic on those as well. Any sort of differences in those? Or it's just sort of, again, it's timing of the contracts and potential sales. There's nothing, I guess, different from the four versus the three still to maybe be dealt with?

另外那三個物件，你聽起來也很樂觀。它們之間有什麼差異嗎？還是說同樣地，主要就是合約時點與潛在出售的時間安排。我想問的是，四個與三個之間，是否仍有什麼不同之處需要處理？

It's timing. You're right. It's timing. And you remember, one, we had to wait a little while to get our hands on, which we have now. I've identified several different potential buyers. So now it's a bit of a let them fight that out to get the best outcome we can.

是時間點。你說得對。就是時間點。而且你還記得，其中一個我們得等一段時間才能真正接手，現在已經拿到手了。我已經找出幾個不同的潛在買家。所以現在就是讓他們彼此競爭，來爭取我們能得到的最佳結果。

Got it. And then hopping over to the margin, Keene, I think our prior conversations were more of a margin to step down toward to 4.20%, I think as the rate environment has altered. And it sounds like you've got some pretty good earning asset repricing opportunities within the book, but you pointed to the yield curve as well.

了解。接著談到利差（margin），Keene，我記得我們先前的對話是，隨著利率環境改變，利差可能會往約4.20%下移。聽起來你們在資產端（earning assets）於投資組合內有不錯的重定價機會，但你也提到了殖利率曲線。

Just want to check on the low-to-mid 4.20%, what's kind of the time line of that? Is that just through the end of the year? And I don't know if you have talked about your positioning thereafter. Any additional color on the margin?

我想確認一下低到中4.20%這個水準，大概的時間軸是什麼？是一路到年底嗎？另外我不確定你是否談過之後的部位配置。利差方面還有什麼補充說明嗎？

Yeah. Jeff, margin in March was a little bit of a step down from the -- what we reported here in the first quarter. So our guide is, I would say, today's run rate, and I think we see it holding stable through the end of the year. I think we had a little bit of balance sheet contraction here in the first quarter. And then with the shorter days, you get a little bit of a false positive in terms of margin popping.

是。Jeff，3月的利差比我們在第一季這裡所報告的水準略有下滑。所以我們的指引，我會說是以今天的運行水準（run rate）為準，而且我們認為它會一路維持穩定到年底。我想第一季我們的資產負債表有些收縮。再加上天數較少，利差看起來會有點跳升，這會帶來一些「假性正面」的效果。

But we feel good about -- the day count in our favor now, really how the shape of the curve and where intermediate-term rates are for reinvestment, both on the loan and securities portfolio. And I think any amount of growth from a loan perspective that we can get, an overall balance sheet growth, which we anticipate will happen here starting in the second quarter. I think we feel really good and optimistic.

但我們對於——現在天數對我們有利，以及曲線形狀、還有中期利率在再投資上的位置（不論是放款或證券投資組合）——都很有信心。而且我認為，只要我們在放款端能取得任何程度的成長、整體資產負債表成長——我們預期從第二季開始會發生——我想我們會感覺非常好，也很樂觀。

And I think we see margin being reasonably stable for that time frame. So we're positioned to defend it, if necessary. We've been able to reprice deposits extremely well when the short end of the curve has come down. I think we continue to feel good about that, if that's the case. But right now, it's status quo.

而且我認為在那段期間，利差會相當穩定。所以如有需要，我們的部位配置也能守住它。當殖利率曲線短端下滑時，我們在存款重定價方面做得非常好。如果情況如此，我們仍然對此很有信心。但就目前而言，就是維持現狀。

And what I would say is historically, status quo is good for us because it allows us to just go play offense, bring clients on, expand the balance sheet and not have to worry about doing as much repricing activity when that arises. So it's business as usual from a growth perspective.

我想說的是，從歷史來看，維持現狀對我們是好事，因為這讓我們可以專注進攻：帶進客戶、擴大資產負債表，而不必在需要時投入那麼多重定價操作。所以就成長面而言，一切照常。

Got it. Yeah, I heard your message of a stable margin, but consistent NII growth is probably more important.

了解。是的，我聽到你的重點是利差穩定，但持續的淨利息收入（NII）成長可能更重要。

Thanks, Jeff.

謝謝，Jeff。

Damon DelMonte, KBW.

Damon DelMonte，KBW。

Hey, good morning, guys. Hope everybody's doing well. Keene, just looking for a little commentary around the outlook for expenses over the coming quarters here in '26. Do you expect much growth off of first quarter's level? And just any insight in there would be great.

嗨，早安，各位。希望大家都一切順利。Keene，我想請你談談對於2026年接下來幾季費用展望的一些看法。你預期會比第一季的水準成長很多嗎？任何相關的洞見都很有幫助。

Yeah. I think the first quarter is always seasonally heavy on compensation. We do expect that to alleviate slightly, albeit we will have a full run rate in the second quarter of merit that occurred in March and day count also moves against us there a little bit. So I think there's a little relief there sequentially on the comp piece, and then we did have a benefit on the deposit expense line item. So that less that, we expect to step up back to more of that $27 million level.

好的。我認為第一季在薪酬方面一向具有季節性偏高。我們確實預期會稍微緩解，不過第二季會反映3月調薪（merit）的完整運行水準，且天數也會稍微對我們不利。所以薪酬這塊按季來看會有一些緩解；另外我們在存款費用這個科目上也有一筆利益。扣除那個因素後，我們預期會回升到較接近2,700萬美元的水準。

So the way I'm thinking about it is that from a pre-pre perspective, with day count and that reversal, we're sort of on the same run rate here to start the second quarter. And then whatever growth and other items we can get will accrue to our benefit. But I think the sequential change in expenses will be paid for, in net interest income and then maybe some other items. So that's sort of how I'm thinking about the expenses here moving into the 2Q and beyond.

所以我的想法是，從稅前、稅前（pre-pre）的角度來看，考量天數以及那項回轉，我們在第二季初大致會維持相同的運行水準。接著任何我們能取得的成長與其他項目，都會成為我們的利多。但我認為費用的按季變動，會由淨利息收入以及可能的一些其他項目來支付。這就是我對第二季及之後費用走勢的看法。

Got it. Okay. So a step-up from this quarter's $115.1 million, but then that's kind of offset by NII growth?

了解。好的。所以會比本季的1.151億美元往上一步，但會被淨利息收入成長所抵銷？

Yeah. That's essentially how I'm thinking about it. I think this is like a very base kind of earnings quarter where we can have mostly positive progress here for second, third, fourth quarter as we get more days, more growth, maybe some more contribution from some of the episodic fee items, things like that.

是的。基本上我就是這樣看。我認為這一季算是非常基礎的獲利季度，接下來第二、第三、第四季，隨著天數增加、成長增加，或是一些偶發性的手續費項目帶來更多貢獻之類的，我們大多能看到正向進展。

Got it. Okay. Great. And then can you help us think a little bit about the provision going forward? Nice to see the NPLs come down this quarter. I'm assuming you're still making progress on the remaining ones and you're going to have some loan growth. So is the provision kind of going to be driven by a similar level of net charge-offs of this quarter and kind of maintaining the loan loss reserve in that north of 120 basis points?

了解。好的。很好。接著你能否幫我們稍微思考一下未來的提存（provision）？很高興看到本季不良貸款（NPLs）下降。我猜你們仍在處理剩餘的那些，且你們也會有一些放款成長。所以提存是否會主要由與本季相近水準的淨沖銷（net charge-offs）所驅動，並且把貸損準備金維持在120個基點以上？

Yeah. I think charge-off-wise, charge-offs are sort of on from a basis point perspective, what we think about on a recurring basis. And then we just -- we took the opportunity with some of the uncertainty that's around the economic forecast, but really wasn't in the base yet to provide some additional reserves for that uncertainty.

是。就沖銷而言，從基點的角度看，沖銷大致符合我們對經常性水準的看法。另外，我們也把握機會，考量到經濟預測周邊存在一些不確定性——但在基準情境裡還沒有反映——因此為這些不確定性額外提列了一些準備金。

So I think, again, back to my comments, I think that positions us well, both with some of the progress we're making on credit as well as just having some of the economic data, whether it was in the underlying forecast or whether we put it on top, just absorbed into what we're thinking here.

所以我認為，回到我先前的評論，這讓我們在信用改善進展以及經濟數據方面都處於有利位置；不論那些數據是在底層預測中，或是我們額外加在上面，都已經被吸收進我們目前的思考之中。

And then to the extent that we have growth and charge-offs, that will drive provisioning, but I think it can abate a little bit just given we took some of the bad news here in the first quarter and put it in a spot where it's there for reserve, if we have businesses that are stressed by oil prices or whatever other items are caused by what's going on.

接著，在我們有成長與沖銷的情況下，這將帶動提列備抵，但我認為這個壓力可能會稍微緩和一些，因為我們在第一季已經把一些壞消息先認列進來，並放到準備金裡；如果有業務因油價或其他因目前情勢所引發的因素而承壓，準備金也已經在那裡了。

Got it. Okay. Great. And then I guess just one more quick one on capital and your view on capital management. Things are going well, strong capital levels, bought back some stock this quarter. Can we assume that you guys will remain active in the market given current levels of stock price?

了解。好的。很好。那我想再快速問一題，關於資本以及你們對資本管理的看法。目前進展順利，資本水準強勁，本季也回購了一些股票。我們是否可以假設，鑑於目前的股價水準，你們會持續在市場上保持積極？

Damon, this is Jim. Absolutely, we'll continue evaluating the merits of further repurchases and our other levers with respect to dividends, we'll continue to evaluate. But really, it's about growth. And as it relates to M&A, it still remains a low priority for us. So you're looking at repurchases and growth as the priorities for capital.

Damon，我是 Jim。當然，我們會持續評估進一步回購的效益，以及在股利方面的其他槓桿，我們也會持續評估。但核心其實是成長。至於併購（M&A），對我們而言仍然是低優先順序。所以在資本運用上，你看到的優先事項會是回購與成長。

Got it. Great. Thanks for all the color and commentary.

了解。很好。謝謝你提供這麼多細節與評論。

Thank you.

謝謝。

Nathan Race, Piper Sandler.

Nathan Race，Piper Sandler。

Hey, guys. Good morning. Thanks for taking the questions. Maybe for Jim or Doug, curious if you can just comment on what you're seeing from a pricing perspective on new loan production on a blended basis and if you're seeing kind of new loan production and incremental deposit growth being margin accretive relative to the overall loan portfolio yield as well?

嗨，各位。早安。謝謝讓我提問。也許問 Jim 或 Doug：想請你們談談，從定價角度來看，新承作貸款在綜合基礎上的定價情況如何？另外，你們是否看到新承作貸款以及新增存款成長，相較於整體貸款組合殖利率，對淨利差是有增益（margin accretive）的？

Yeah, Nathan, it's Doug here. Thanks for the question. Listen, we are clearly seeing competitive pressures kind of squeezing spreads in credit across all of the footprints today. If we look at loan yields, I think at the end of Q1, yields were 6.2%, 6.3%, somewhere in that range. And given the current environment, right, we think we can continue to originate credit in that low to mid-6% range.

是的，Nathan，我是 Doug。謝謝你的問題。聽著，我們確實看到競爭壓力正在擠壓各個市場版圖中信貸利差。如果看貸款殖利率，我想在第一季末大約是 6.2%、6.3%，大概在那個區間。在目前環境下，我們認為仍可持續承作落在 6% 初到 6% 中段區間的信貸。

And as we talked about, just some redeployment of capital from payoffs in the LIHTC portfolio that provides us some real advantage there of really 200 to 300 basis points of additional margin on that $100 million portfolio that paid off. So it's tough out there, right? But our team does a good job to price both to win and yet to work to protect our margin with every basis point that we can.

另外如我們先前提到的，LIHTC 投資組合到期回收後的部分資本再部署，讓我們在那方面有很大的優勢：對於那筆已回收的 1 億美元投資組合，可帶來約 200 到 300 個基點的額外利差。所以外部環境確實不容易，對吧？但我們團隊在定價上做得很好，既能爭取到案子，同時也盡可能用每一個基點來保護我們的利差。

Okay. Got it. That's helpful. And then just the expectation that loan growth in the mid-single-digit range for this year is going to be funded by deposit gathering? Or maybe, Keene, can you just comment on kind of excess liquidity that you have coming off the bond portfolio and just kind of other sources of funds to loan growth?

好的。了解。這很有幫助。那再問一下：你們預期今年貸款成長在中個位數，會主要透過吸收存款來支應嗎？或者 Keene，你能否談談你們債券投資組合到期釋出的超額流動性，以及其他可用來支應貸款成長的資金來源？

Yeah. I think we expect to keep the securities portfolio at a similar proportion. So I think our expectation is that we'll continue to grow it over the course of the year. That means that we're going to out-fund loan growth with deposit growth, both in the Commercial Bank and the Specialty and Consumer Bank.

是的。我想我們預期會讓證券投資組合維持在類似的占比。因此我們的預期是，全年我們會持續讓它成長。這也意味著，我們會用存款成長來「超額」支應貸款成長，涵蓋商業銀行以及專業與消費銀行兩個部門。

So that's our plan. I think that's the thing we're probably most confident about, is our ability to grow deposits. We like the environment for deployment, whether that's in the securities or loans. And I think you heard from Doug, we'll continue to be disciplined on the loan side, both on credit and pricing. And I think we think that sets up for a good performance in 2026 and beyond. So that's the playbook we've been running for the last few years, and I think that's the playbook for '26.

所以這是我們的計畫。我想我們最有把握的一點，可能就是我們成長存款的能力。我們喜歡目前的資金部署環境，不論是配置到證券或貸款。而且你也聽到 Doug 說，我們在貸款端會持續保持紀律，不論是信用或定價。我們認為這會為 2026 年及之後的良好表現打下基礎。這就是我們過去幾年一直在執行的作戰手冊，我想這也會是 2026 年的作戰手冊。

Okay. Great. And maybe one last one for Jim. Just curious if you can comment on any M&A appetite these days. Obviously, you guys have a nice organic trajectory in front of you and some nice earnings tailwinds over the balance of this year. But just curious if there's any opportunities on the M&A front that are interesting for you guys these days? Or it's just kind of the focus on organic growth, buying back the stock, just given where the currency is today?

好的。很好。那最後一題給 Jim。想請你談談目前對併購（M&A）的意願。顯然你們前方有不錯的內生成長軌跡，而且今年剩餘期間也有一些不錯的獲利順風。但想了解，近期在併購方面是否有任何對你們而言有吸引力的機會？或者就只是把重心放在內生成長與回購股票，考量到目前的「交易貨幣」（股價）水準？

Yeah, Nate, we're laser-focused on executing the plan. We've got some work to do relative to growth, and certainly, we have to execute on the plans relative to sales of these assets that we have and what have you. But it's a low priority -- and we just got to keep focused on making sure that the plan we put forth is execute perfectly, and that's where our [full-tenured] associates are focused on today and tomorrow and into the future.

是的，Nate，我們非常專注在把計畫執行到位。相較於成長，我們還有一些工作要做；當然，我們也必須把我們手上這些資產的出售等相關計畫執行好。但併購是低優先順序——我們必須持續聚焦，確保我們提出的計畫被完美執行；這也是我們這些資深同仁今天、明天以及未來所專注的方向。

Okay, sounds good. I appreciate all the color. Thanks, guys.

好的，聽起來不錯。謝謝你提供這些細節。謝謝各位。

Thank you.

謝謝。

(Operator Instructions) We don't have any further questions in the conference line. I would now like to hand the call back to Jim Lally, President and CEO, for closing remarks.

(接線員指示) 會議線上沒有其他問題。現在我想把電話交回給總裁兼執行長 Jim Lally，請他做結語。

Thank you, Ellie, and thank you all for joining us this morning and for your continued interest in our company. We look forward to talking to you at the end of the second quarter, if not sooner. Have a great day.

謝謝你，Ellie，也謝謝各位今天早上參與，以及持續關注我們公司。我們期待在第二季結束時與各位再度交流，如果不是更早的話。祝各位有美好的一天。

Thank you for attending today's call. You may now disconnect. Goodbye.

感謝您參加今天的電話會議。您現在可以掛線。再見。