Eagle Bancorp Inc (EGBN) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Eagle Bancorp Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Eagle Bancorp 2023 年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I'd now like to hand the conference over to your speaker today, Charles Levingston, Chief Financial Officer of EagleBank. Please go ahead.

現在我想將會議交給今天的發言人，EagleBank 財務長 Charles Levingston。請繼續。

Thank you, Liz. Good morning. This is Charles Levingston, Chief Financial Officer of Eagle Bank. Before we begin the presentation, I would like to remind everyone that some of the comments made during this call may be considered forward-looking statements. We cannot make any promises about future performance, and it is our policy not to establish with the markets any formal guidance with respect to earnings. None of the forward-looking statements made during this call should be interpreted as are providing formal guidance. Our Form 10-K for the 2022 fiscal year and 10-Q for the June 30, 2023, and current reports on Form 8-K identify certain risk factors that could cause the company's actual results to differ materially from those projected in any forward-looking statements made this morning.

謝謝你，莉茲。早安.我是查爾斯‧萊文斯頓 (Charles Levingston)，鷹銀行 (Eagle Bank) 財務長。在我們開始簡報之前，我想提醒大家，本次電話會議中發表的一些評論可能被視為前瞻性陳述。我們無法對未來業績做出任何承諾，我們的政策是不與市場建立任何有關盈利的正式指導。本次電話會議中所做的任何前瞻性陳述均不應被解釋為提供正式指導。我們的2022 財年10-K 表格和2023 年6 月30 日的10-Q 表格以及8-K 表格的當前報告確定了某些風險因素，這些因素可能導致公司的實際結果與任何前瞻性預測中的預測結果存在重大差異。尋找今天早上發表的聲明。

Eagle Bancorp does not undertake to update any forward-looking statements as a result of new information or future events or developments unless required by law. This morning's commentary will include non-GAAP financial information. The earnings release, which is posted in the Investor Relations section of our website and filed with the SEC, contains reconciliations of this information to the most directly comparable GAAP information. Our periodic reports are available from the company online at our website or on the SEC's website.

除非法律要求，Eagle Bancorp 不承諾因新資訊或未來事件或發展而更新任何前瞻性聲明。今天早上的評論將包括非公認會計準則財務資訊。收益發佈發佈在我們網站的投資者關係部分，並向美國證券交易委員會提交，其中包含此資訊與最直接可比較的 GAAP 資訊的調節。我們的定期報告可從公司網站或 SEC 網站上取得。

I would now like to turn it over to our President and CEO, Susan Riel.

現在我想將其交給我們的總裁兼執行長蘇珊·瑞爾 (Susan Riel)。

Thank you, Charles. Good morning, everyone. Before we start, I would like to welcome Eric Newell as a new member of our senior management team and as CFO of Eagle Bancorp. Adding Eric to our finance team gives us more talent and a deeper bench and enables us to accomplish our long-term goals to continue to serve and support our customers and build value for our shareholders. As Eric joined us late in the quarter, we will follow our normal format today with Dan discussing her thoughts on the local economy, loans, reserves and credit quality matters. And then Charles return to discuss our financials in more detail.

謝謝你，查爾斯。大家，早安。在我們開始之前，我要歡迎Eric Newell 成為我們高階管理團隊的新成員以及Eagle Bancorp 的財務長。Eric Newell 加入我們的財務團隊將為我們提供更多的人才和更深的板凳，使我們能夠實現我們的長期目標目標是繼續服務和支持我們的客戶並為股東創造價值。由於 Eric 在本季末加入我們，我們今天將按照正常格式與 Dan 討論她對當地經濟、貸款、儲備和信貸品質問題的看法。然後查爾斯回來更詳細地討論我們的財務狀況。

At the end, the three of us and Eric will be available to take questions. I am pleased that our third quarter performance continued to build on the progress we are making in an uncertain operating environment. During the third quarter, we saw a stabilization of both earnings and margins and an improvement in the funding mix with deposit inflows and paydowns of short-term debt. On the deposit front, we are working diligently to build capabilities to drive growth in our core deposit base. We have a multipronged approach to build out a scalable and sustainable deposit growth strategy.

最後，我們三個人和艾瑞克將可以回答問題。我很高興我們第三季的業績繼續建立在我們在不確定的營運環境中取得的進展的基礎上。第三季度，我們看到收益和利潤率趨於穩定，資金組合、存款流入和短期債務償還有所改善。在存款方面，我們正在努力建立能力，推動核心存款基礎的成長。我們採取多管齊下的方法來制定可擴展且可持續的存款成長策略。

I will highlight 3 areas of focus for the EagleBank team. First, enhancing our treasury management program and product suite will assist us in building and maintaining C&I relationships. Next, we are working to enhance our digital banking platform, allowing us to leverage our in-footprint brand and increase our market share of deposits in the DMV region as well as develop opportunities to augment deposit growth outside of our footprint.

我將重點介紹 EagleBank 團隊的 3 個重點領域。首先，加強我們的資金管理計劃和產品套件將幫助我們建立和維護 C&I 關係。接下來，我們正在努力增強我們的數位銀行平台，使我們能夠利用我們的足跡品牌並增加我們在 DMV 地區存款的市場份額，並開發機會以增加我們足跡之外的存款成長。

Finally, we are looking at ways to better leverage our existing branch network to drive customer acquisition and exploring how to increase EagleBank's physical presence in lower-cost geographies, contiguous to the Washington, D.C. metro market. With these initiatives, I am excited about the future of EagleBank's ability to grow and improve the deposit mix. This will contribute to the progress we have made in repositioning our balance sheet to meet the challenges of today's high rate environment. In addition to the larger initiatives that I have highlighted, there are many other smaller initiatives we are working on as a team.

最後，我們正在尋找更好地利用現有分行網路來推動客戶獲取的方法，並探索如何增加 EagleBank 在毗鄰華盛頓特區地鐵市場的低成本地區的實體業務。透過這些舉措，我對 EagleBank 未來發展和改善存款組合的能力感到興奮。這將有助於我們在重新定位資產負債表以應對當今高利率環境的挑戰方面取得進展。除了我強調的較大舉措外，我們團隊還正在進行許多其他較小的舉措。

On the other side of the balance sheet, we are also keeping our focus on asset quality. We have a proven history of superior asset quality and conservative underwriting that has worked well for us in times of market stress. We have pulled together special expert teams to assess our office and multifamily exposures. We are confident that the approach our teams are taking will put EagleBank and our borrowers in the best position in light of a difficult operating and interest rate environment.

在資產負債表的另一邊，我們也持續關注資產品質。我們擁有卓越的資產品質和保守的承保歷史，這在市場壓力時期對我們發揮了良好的作用。我們召集了專門的專家團隊來評估我們的辦公室和多戶家庭的風險。我們相信，鑑於困難的營運和利率環境，我們團隊正在採取的方法將使 EagleBank 和我們的借款人處於最佳位置。

Before turning it over to Jan, I want to add that I am excited about the hiring of Karen Buck, our new Chief Administrative Officer, who will be instrumental in providing leadership and guidance through the execution of these strategies. With that, I'll hand it over to Jan.

在將其交給 Jan 之前，我想補充一點，我對聘用我們的新首席行政官 Karen Buck 感到很興奮，她將在執行這些策略時提供領導和指導。這樣，我就把它交給Jan。

Thank you, Susan, and good morning, everyone. The Washington, D.C. market area continues to be a source of economic strength even with the local government workers not yet returning to the office in great numbers. The unemployment rate in the Washington metropolitan statistical area rose to 2.9% in August, up from 2.7% in May. This mirrors the change in the nationwide figure, which grew from 3.8% in September, up from 3.6% in June. This strength in the Washington area market can be seen in our asset quality metrics.

謝謝你，蘇珊，大家早安。儘管當地政府工作人員尚未大量返回辦公室，但華盛頓特區市場地區仍然是經濟實力的來源。華盛頓都會統計區的失業率從 5 月的 2.7% 升至 8 月的 2.9%。這反映了全國數據的變化，從 9 月的 3.8% 上升到 6 月的 3.6%。華盛頓地區市場的這種優勢可以從我們的資產品質指標看出。

Nonperforming assets were $72 million, which was 65 basis points of total assets. The increase of $41.4 million was primarily from one multifamily credit for $39.5 million, which we discussed as a past due last quarter. There were 3 charge-offs for the quarter totaling $467,000. All 3 were SBA loans. The total net charge-off for the quarter was $340,000.

不良資產為 7,200 萬美元，佔總資產的 65 個基點。 4,140 萬美元的成長主要來自一筆 3,950 萬美元的多戶家庭信貸，我們在上個季度討論過該信貸逾期。本季有 3 次沖銷，總計 467,000 美元。所有 3 筆都是 SBA 貸款。該季度的淨沖銷總額為 340,000 美元。

Loans 30 to 89 days past due were $46.5 million, up from $41 million at the end of the prior quarter. The increase from the prior quarter was primarily from one office property in Northern Virginia and one assisted living facility in Maryland, offset by the migration of the previously mentioned multifamily credit moving to nonperforming status.

逾期 3,000 至 89 天的貸款為 4,650 萬美元，高於上一季末的 4,100 萬美元。較上一季的成長主要來自維吉尼亞州北部的一處辦公物業和馬裡蘭州的一處輔助生活設施，但被前面提到的多戶家庭信貸轉為不良狀態所抵消。

For the third quarter, we had a provision to the ACL of $5.6 million. This was somewhat higher than the provision last quarter. But even with the 3 charge-offs and higher loan balances, our ACL to loans at quarter end was up 5 basis points to 1.05%. For unfunded commitments had a reversal. This was primarily from a reduction in unfunded commitments as construction projects were funded and added to our quarter-end loan balances.

第三季度，我們為 ACL 撥備了 560 萬美元。這略高於上季的撥備。但即使有 3 次沖銷和更高的貸款餘額，我們季度末的貸款 ACL 仍上漲了 5 個基點，達到 1.05%。對於無資金支持的承諾發生了逆轉。這主要是由於建設項目獲得資金並添加到我們的季末貸款餘額中，導致無資金承諾的減少。

With regards to the higher ACL provision, it was primarily driven by increases in qualitative reserves combined with a smaller increase in the quantitative reserve. The increase in qualitative reserves was driven by increases in early-stage past dues and overall perceived weakness in the commercial real estate market. The increase in quantitative reserve was primarily due to loan growth during the quarter, particularly in longer life categories that carry corresponding higher reserves as well as slowing prepayment speeds in certain loan categories due to higher interest rates, partly offset by modest improvements in the unemployment forecast.

至於ACL撥備的增加，主要是由於定性準備增加以及數量準備金增幅較小所致。品質準備金的增加是由於早期逾期款項的增加以及商業房地產市場的整體疲軟所推動的。數量準備金的增加主要是由於本季度貸款增長，特別是在具有相應較高準備金的較長壽命類別中，以及由於利率上升而導致某些貸款類別的提前還款速度放緩，部分被失業預測的適度改善所抵消。

Focusing on CRE office loans secured by nonowner-occupied credits. These loans were $950 million or 12% of the loan portfolio at quarter end, down $26 million from the prior quarter. These office properties are primarily located in the Washington, D.C. market with 24% in the District of Columbia, 34% in the Maryland suburbs and 34% in Northern Virginia and an additional 7.6% located outside of these markets. We did not have any outstanding commercial real estate office construction loans at the end of the third quarter.

重點關注由非業主自用信貸擔保的商業房地產辦公室貸款。截至季末，這些貸款為 9.5 億美元，佔貸款組合的 12%，比上一季減少 2,600 萬美元。這些辦公室物業主要位於華盛頓特區市場，其中 24% 位於哥倫比亞特區，34% 位於馬裡蘭州郊區，34% 位於維吉尼亞州北部，另外 7.6% 位於這些市場之外。截至第三季末，我們沒有任何未償還的商業房地產辦公室建設貸款。

To monitor our income-producing CRE credits, we continue to be proactive in reaching out to commercial clients well in advance of maturities to better understand the headwinds that their properties could be facing, including a significantly higher interest rate environment and work collaboratively to achieve results beneficial to both the bank and the borrowers.

為了監控我們創造收入的商業房地產信貸，我們繼續在到期前積極主動地與商業客戶接觸，以更好地了解他們的房產可能面臨的不利因素，包括大幅上漲的利率環境，並共同努力以取得成果對銀行和借款人雙方都有利。

Overall, in terms of credit underwriting, we remain cautious, and we will continue to exercise selectivity and to apply our customary strong underwriting standards. Having said that, we see opportunities to continue to add high-quality commercial loans to the portfolio and to maintain our portfolio as other loans run off.

整體而言，在信用承銷方面，我們仍然保持謹慎態度，我們將繼續實行選擇性並採用我們一貫的嚴格承銷標準。話雖如此，我們看到了繼續向投資組合添加高品質商業貸款並在其他貸款流失時維持我們的投資組合的機會。

With that, I'd like to turn it over to Charles.

有了這個，我想把它交給查爾斯。

Thanks, Jan. This was another good quarter in that we were able to improve our funding mix, one of our strategic goals. During the quarter, our efforts to gather deposits organically met with success as deposits increased by $658 million. This increase was led by savings and money market accounts up $339 million and time deposits of $255 million. At the same time, broker deposits declined by $38 million and were down to 29.6% of deposits.

謝謝，Jan。這是另一個不錯的季度，因為我們能夠改善我們的融資組合，這是我們的策略目標之一。本季度，我們有機吸收存款的努力取得了成功，存款增加了 6.58 億美元。這一成長主要由儲蓄和貨幣市場帳戶增加 3.39 億美元以及定期存款 2.55 億美元帶動。同時，經紀人存款減少了 3,800 萬美元，佔存款的比例下降至 29.6%。

With deposits up $658 million, we took the opportunity to reduce our higher cost borrowings by paying down 100% of our FHLB advances. BTFP borrowings, which have a more attractive rate and collateral requirements remain unchanged. On the balance sheet, our mix of deposits and borrowings at quarter end is now much closer to how it looked at the end of December before the market disruption in March.

由於存款增加了 6.58 億美元，我們藉此機會透過償還 100% 的 FHLB 預付款來降低成本較高的借款。 BTFP 借款的利率更具吸引力，抵押品要求保持不變。在資產負債表上，季度末的存款和借款組合現在更接近 3 月市場混亂之前 12 月底的情況。

During the quarter, deposits climbed to $8.4 billion compared to $8.7 billion at the end of 2022, and short-term borrowings were reduced to $1.3 billion compared to $975 million at year-end. One item, though, that continues to change is the move by deposit customers into interest-bearing accounts. For the quarter, average noninterest-bearing deposits were down $310 million or 12.1%, and interest-bearing deposits were up $742 million or 12.5% off a much bigger base.

本季存款增至 84 億美元，而 2022 年底為 87 億美元；短期借款減少至 13 億美元，而年底為 9.75 億美元。不過，持續變動的一項是存款客戶轉向計息帳戶。本季度，平均無息存款減少 3.1 億美元，或 12.1%，有息存款增加 7.42 億美元，或 12.5%，基數大得多。

For the quarter, average noninterest-bearing deposits were 25% of deposits, down from 30% the prior quarter. Customers seeking out higher interest-bearing accounts and a rate increase across most of our product lines at the end of July, shortly after the Fed raised by 25 basis points combined to increase our cost of funds by 19 basis points to 3.39%. This is a much lower increase than the prior quarter's increase of 58 basis points.

本季度，平均無息存款佔存款的 25%，低於上一季的 30%。 7 月底，在聯準會升息 25 個基點後不久，客戶尋求更高的計息帳戶，我們的大部分產品線都上調了利率，使我們的資金成本增加了 19 個基點，達到 3.39%。這一增幅遠低於上一季的 58 個基點增幅。

As we are talking about cost of funds, I'll continue with commentary on our margin. This quarter, net interest income was down $1.1 million, and the net interest margin was 2.43%, down 6 basis points. Interest income was adversely impacted by a reversal of $1.6 million because of the one multifamily loan in the District of Columbia, entering nonperforming status in the quarter. This reversal reduced our margin by 6 basis points and accounts for all the change from the prior quarter.

當我們談論資金成本時，我將繼續對我們的保證金進行評論。本季淨利息收入下降110萬美元，淨利差2.43%，下降6個基點。由於哥倫比亞特區的一筆多戶家庭貸款在本季度進入不良狀態，利息收入受到 160 萬美元逆轉的不利影響。這一逆轉使我們的利潤率降低了 6 個基點，並解釋了與上一季相比的所有變化。

Before moving on to the income statement, we experienced loan growth this quarter with loans up $150 million, but some of that was timing of existing construction loans funding at quarter end. This was the reason for the reversal of the provision on unfunded commitments. Even with the increase in loans, the strong growth in deposits drove our loan-to-deposit ratio down to 95% from 101% the prior quarter. Looking at the bottom line, net income was $27.4 million for the quarter compared to $28.7 million in the prior quarter. This stabilization of earnings is a result of our targeted efforts to improve the balance sheet mix, reduce the rate of expense growth and maintain our strong asset quality metrics, which are reflected in the provision for credit losses.

在進入損益表之前，本季我們經歷了貸款成長，貸款增加了 1.5 億美元，但其中一些是季度末現有建築貸款融資的時間表。這就是撤銷無資金承諾條款的原因。儘管貸款增加，但存款的強勁成長導致貸存比從上季的 101% 降至 95%。從底線來看，本季淨利為 2,740 萬美元，而上一季淨利為 2,870 萬美元。獲利的穩定是我們有針對性地努力改善資產負債表結構、降低費用成長率和維持強勁的資產品質指標的結果，這些指標反映在信貸損失撥備上。

Additionally, as we mentioned last quarter, there is a lag in Fed rate changes impacting interest income on loans as compared to interest expense on deposits. As the Fed has slowed the pace of rate increases, the benefit from the variable rate loans resetting higher and from new loans at market rates is beginning to reduce the GAAP versus interest expense changes.

此外，正如我們上季度提到的，與存款利息支出相比，聯準會利率變動對貸款利息收入的影響存在滯後。隨著聯準會放慢升息步伐，浮動利率貸款重新調高以及按市場利率發放的新貸款所帶來的好處開始減少公認會計準則與利息費用變化的關係。

Other items impacting quarter-over-quarter earnings were noninterest income, which was down primarily because the prior quarter included nonrecurring income of $2.8 million from an FDIC fund and noninterest expense showed improvement, down $345,000 from the prior quarter, primarily due to lower overall expenses, offset by higher FDIC fees, which were up $761,000 from the prior quarter on higher assessment fees.

影響季度收益的其他項目是非利息收入，其下降主要是因為上一季包括來自FDIC 基金的280 萬美元非經常性收入，並且非利息支出有所改善，比上一季下降了345,000 美元，這主要是由於整體支出減少，被較高的 FDIC 費用所抵消，由於評估費用增加，該費用比上一季增加了 761,000 美元。

In regards to expenses, we have always prided ourselves on being highly efficient, and we aim to continue to operate in that manner. We recognize that we will need to invest in the company over the next several quarters to achieve our strategic goals, but we do not expect a meaningful increase in the run rate of expenses in 2024 due to cost savings we've realized year-to-date. This past quarter efficiency was 48.8%, which compares well to our proxy peers.

在費用方面，我們一直以高效而自豪，我們的目標是繼續以這種方式運作。我們認識到，我們需要在未來幾季對該公司進行投資才能實現我們的策略目標，但由於我們逐年實現了成本節約，我們預計 2024 年的費用運行率不會出現有意義的成長日期。上個季度的效率為 48.8%，與我們的代理同業相比相當不錯。

Lastly, capital remains a core strength of the company. Our tangible common equity ratio at quarter end was 10.04%, which was higher than all but one of our proxy peers last quarter. And in terms of liquidity, we improved our aggregate borrowing capacity to $2.26 billion, which gives us the financial flexibility to provide the support and services our customers expect.

最後，資本仍然是公司的核心優勢。截至季末，我們的有形普通股比率為 10.04%，高於上季除一家代理商同業之外的所有其他同業。在流動性方面，我們將總借貸能力提高至 22.6 億美元，這使我們能夠具有財務靈活性來提供客戶期望的支援和服務。

With that, I'll hand it back to Susan for a short wrap-up. Susan?

接下來，我會將其交還給蘇珊進行簡短的總結。蘇珊？

Thanks, Charles. We are all excited about EagleBank's future. We have demonstrated our ability to improve the balance sheet and stabilize both earnings and margin. We also continue to meet our commitment to a relationship-first culture, strong conservative underwriting and peer-leading efficiency. And last, but certainly not least, the recent additions to our leadership team gives us added depth and expertise to meet and succeed at meeting today's challenges. In closing, our senior management team would like to thank all of our employees who work hard every day to make Eagle the success it is.

謝謝，查爾斯。我們都對 EagleBank 的未來感到興奮。我們已經證明了我們改善資產負債表、穩定收益和利潤率的能力。我們也持續履行對關係至上文化、強大的保守承保和同儕領先效率的承諾。最後但並非最不重要的一點是，我們最近增加的領導團隊為我們提供了更多的深度和專業知識，以應對並成功應對當今的挑戰。最後，我們的高階管理團隊要感謝所有每天辛勤工作的員工，讓 Eagle 取得了今天的成功。

With that, we will now open up for questions.

至此，我們現在開始提問。

(Operator Instructions) Our first question comes from the line of Catherine Mealor with KBW.

（操作員說明）我們的第一個問題來自 KBW 的 Catherine Mealor。

I will start with credit. Jan, I remember last quarter, you talked about -- I think it was something in the range of like $200 million of office loans that were maturing in the next 18 months and you were -- or maybe it was like $400, but then $200 you were looking at this quarter in some kind of capacity. Can you just give us an update on what that process looks like? And any kind of update in your office portfolio today versus last quarter?

我將從信用開始。 Jan，我記得上個季度，您談到過——我認為大約 2 億美元的辦公貸款將在未來 18 個月內到期，而您——或者可能是 400 美元，但後來是 200 美元您以某種身分看待本季。您能為我們介紹一下流程的最新情況嗎？與上季相比，今天您的辦公室投資組合有什麼更新嗎？

Sure. We worked through about $120 million in office loans in the past quarter with longer-term extensions. These are loans that really -- were going to be seeing more extensions on, I think, as there really is no market right now for office refinance. So what we're doing is working with each particular building, sponsor, guarantors. Each one is, to a certain extent, unique. We are exploring the continued use of office and also alternative uses.

當然。上個季度，我們處理了約 1.2 億美元的辦公貸款，並提供了長期延期。我認為，這些貸款確實會得到更多延期，因為目前辦公室再融資確實沒有市場。所以我們正在做的是與每個特定的建築、贊助商、擔保人合作。在某種程度上，每一個都是獨一無二的。我們正在探索辦公室的繼續使用以及其他用途。

I think we've been pretty successful in moving forward with that. That doesn't mean that we won't have more nonperforming loans in the future. But I think based on the underwriting that we did initially, we have a fairly large amount of room for -- to absorb declines and valuations. So I'm not anticipating that we're going to see significant charge-offs in that office sector right now. And we're going to continue to work with customers and process extensions as merited and went in the best interest of the bank and the borrower.

我認為我們在這方面取得了相當成功的進展。這並不意味著我們未來不會有更多的不良貸款。但我認為，根據我們最初進行的承銷，我們有相當大的空間來吸收下跌和估值。因此，我預計我們現在不會看到辦公部門出現大幅沖銷。我們將繼續與客戶合作，並根據銀行和借款人的最佳利益處理延期。

Okay. Great. That's very helpful. And then it was nice to see a stability in the special mention and substandard categories. Can you remind us how much of your substandard loans are office?

好的。偉大的。這非常有幫助。然後很高興看到特別提及和不合格類別的穩定性。您能否提醒我們，您的次級貸款中有多少是辦公室貸款？

I can. In the substandard category, we have $74 million; in the nonperforming category, we have $23 million. Special mention, we have $85 million; watch, we have $55 million.

我可以。在不合格類別中，我們有 7,400 萬美元；在不良類別中，我們有 2300 萬美元。特別值得一提的是，我們有8,500萬美元；看，我們有 5500 萬美元。

Okay. Great. All right. And then moving over to the margin. It was great to see the increase in total deposits, but you were still seeing a decline in the noninterest-bearing category. But can you talk about anecdotes or kind of trends of what you're seeing within that shift in your customer base? And as you just -- I know it's so hard to forecast. But as you kind of sit here today, what's your gut on where you think those balances or that mix shift will bottom?

好的。偉大的。好的。然後移動到邊緣。很高興看到存款總額增加，但無息類別仍然下降。但是您能談談您在客戶群轉變中看到的軼事或趨勢嗎？正如您所說，我知道這很難預測。但當你今天坐在這裡時，你認為這些平衡或混合轉變將在哪裡觸底？

Yes, sure. Obviously, we've had a long history of being able to maintain noninterest-bearing deposits around 30%. We're clearly in a very different environment these days with rates where they are. And some of the disintermediation that we've seen over the last 18 months or so has been just that these folks not wanting to sit on idle cash and have that cash earning for them.

是的，當然。顯然，我們長期以來一直能夠將無息存款維持在 30% 左右。如今，我們顯然處於一個非常不同的環境中，利率也處於同樣的水平。在過去 18 個月左右的時間裡，我們看到的一些脫媒現像只是因為這些人不想坐擁閒置現金並為他們賺取現金。

My observation is most of that migration. If you just look at average, average balances quarter-over-quarter has moved into term deposits. And that kind of lends itself to this notion of the Fed staying higher for longer, but also people wanting to capture the yields on those. My sense is that we have a very solid base of noninterest-bearing deposits here, I would expect us to maintain around where we are.

我的觀察是大部分的遷移。如果只看平均值，季度環比的平均餘額已轉為定期存款。這不僅有助於聯準會在更長時間內維持較高水平，也有助於人們希望獲得這些收益率。我的感覺是，我們在這裡擁有非常堅實的無利息存款基礎，我希望我們能夠維持現狀。

And at the same time, as Susan mentioned earlier in her remarks, there will be continued efforts to build out treasury management services in order to attract additional operating accounts and to continue to pour more in as maybe we see some migrating and looking for some yield there. But my expectation is we're in a pretty happy place with where those are in terms of the baseline.

同時，正如蘇珊之前在演講中提到的那樣，我們將繼續努力建立資金管理服務，以吸引更多的營運帳戶並繼續投入更多資金，因為也許我們會看到一些人遷移並尋求一些收益那裡。但我的期望是，就基線而言，我們處於一個非常滿意的位置。

Okay. All right. Great. And actually, if I could go back to the office, I forgot one thing I wanted to ask, did you -- was part of the increase in the ACL associated with your office book? And can you remind us what your office reserve is today.

好的。好的。偉大的。事實上，如果我能回到辦公室，我忘記了我想問的一件事，你是不是 - 與你的辦公簿相關的 ACL 增加的一部分？您能否提醒我們您今天的辦公室儲備是多少？

We did have some portion of the reserve that was associated with the office portfolio, although we have no impairment reserves on the office portfolio right now. So I think a portion of the increase was associated with that to the extent that a loan would move from performing to nonperforming. Obviously, it's not impaired, the reserve that was associated but that would go away.

我們確實有一部分與辦公室投資組合相關的準備金，儘管我們目前沒有辦公室投資組合的減損準備金。因此，我認為成長的一部分與貸款從不良貸款轉為不良貸款有關。顯然，它並沒有受到損害，相關的儲備金將會消失。

I think our feeling about the market in general and our office overlay provides us some buffer there. We have, in terms of substandard loans, the reserve is about 6% -- of the substandard loans that's allocable to office, and we have about 3% on the special mention. Watch is about one in three quarters, and then the past portfolio is 130.

我認為我們對市場的整體感覺以及我們的辦公室覆蓋層為我們提供了一些緩衝。就次級標準貸款而言，我們的準備金約為可分配給辦公室的次級標準貸款的 6%，特別關注的準備金約為 3%。 Watch大約是三分之一，然後過去的投資組合是130。

Our next question comes from the line of Casey Whitman with Piper Sandler.

我們的下一個問題來自凱西·惠特曼和派珀·桑德勒的對話。

Just sticking with credit. Maybe can we address just the 2 loans that moved past due this quarter. Can we talk about just the size of each of the loans? And then any other details you can give us, Jan, around those 2 in terms of LTVs or any specific reserves you might have on them? Or any details on those 2 would be helpful.

只要堅持信用即可。也許我們可以只解決本季逾期的兩筆貸款。我們可以談談每筆貸款的規模嗎？ Jan，關於這兩個方面，您可以向我們提供有關 LTV 或您可能擁有的任何具體儲備的其他詳細資訊嗎？或有關這兩個的任何詳細資訊都會有所幫助。

Sure. They are both real estate secured. The nursing home assisted living facility is owner occupied. So that was not part of our CRE portfolio. Based on a current appraisal, it's not an impaired loan, so there would not be an associated impairment reserve that would go with that. There's also on the office side, that loan they're each about $20 million. On the office side, that loan was in the process of having an extension done. It was extended for a year. And based on the appraisal that was done in December of 2022, there is no impairment.

當然。他們都有房地產擔保。療養院輔助生活設施由業主佔用。所以這不屬於我們的商業房地產投資組合的一部分。根據目前的評估，這不是減損貸款，因此不會有與之相關的減損準備金。還有辦公室方面，每筆貸款約 2000 萬美元。在辦公室方面，該貸款正在延期。它被延長了一年。經2022年12月評估，不存在減損情形。

All right. Thank you. Susan, I wanted to address some of your -- I think in your prepared remarks, you talked about just potentially expanding outside the DMV. Can you talk about some of the markets that might make sense for you? And would that start with building out more of a branch network or just hiring lenders or sort of what's the broader strategy and how long might this take to execute?

好的。謝謝。蘇珊，我想談談您的一些想法——我認為在您準備好的演講中，您談到了可能擴展到 DMV 之外的問題。您能談談一些可能對您有意義的市場嗎？是從建立更多的分支機構網絡開始，還是只是僱用貸款人，或者更廣泛的策略是什麼？這可能需要多長時間才能執行？

Casey, we're still flushing some of that out, but we still will maintain our brand slight strategy but looking at some contiguous areas on what they may bring as far as opportunities for branch deposit growth and potentially loan production also. So we will take all of that into consideration as we explore those opportunities. But we are open to that.

凱西，我們仍在清除其中的一些，但我們仍將維持我們的品牌策略，但會關註一些連續的領域，看看它們可能帶來分行存款成長和潛在貸款生產的機會。因此，在探索這些機會時，我們將考慮所有這些因素。但我們對此持開放態度。

Okay. Stay tuned. Back to you, Jan, just one more credit question. Just can you address your shared national credit exposure? What kind of syndications you have?

好的。敬請關注。回到你，Jan，還有一個信用問題。您能解決共同的國家信用風險嗎？你們有什麼樣的聯合組織？

It's pretty minimal. We only have a couple of loans there. The largest one is part of the Wharf complex, and that's performing well, it's actually done very well this year. It is rated by the national team as special mention. So that's how it shows up on our books. When that rating changes, we will change it on our books as well. But that's been a pretty successful project in the D.C. area. And we also have a piece of a deal that is casino-related in New England, and that's doing quite well and is in the past portfolio...

這是相當小的。我們在那裡只有幾筆貸款。最大的一個是碼頭綜合體的一部分，表現很好，今年實際上做得很好。被國家隊評為特別提。這就是它在我們的書中的顯示方式。當評級發生變化時，我們也會在我們的帳本上進行更改。但這在華盛頓地區是一個非常成功的計畫。我們在新英格蘭還有一項與賭場相關的交易，而且做得很好，並且在過去的投資組合中...

That concludes today's question-and-answer session. I'd like to turn the call back to Susan Riel for closing remarks.

今天的問答環節到此結束。我想將電話轉回蘇珊‧瑞爾 (Susan Riel)，讓其致閉幕詞。

Thank you, everyone. We appreciate your questions and you're taking the time to join us on the call today, and we look forward to speaking with you again next quarter. Have a great day.

謝謝大家。感謝您提出問題，您今天抽出時間參加我們的電話會議，我們期待下個季度再次與您交談。祝你有美好的一天。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。