East West Bancorp Inc (EWBC) 2003 Q4 法說會逐字稿

Thank you. We apologize for technical difficulty we had. I will quickly read -- I would first like to caution participants that during the course of the conference call today, management may make projections or other forward-looking statements regarding the events or future financial performance of the Company within the meaning of the Safe Harbor provision with the Private Securities Litigation Reform Act of 1995. We wish to caution you that these forward-looking statements may differ materially from actual results due to a number of risks and uncertainties. For a more detailed description of factors that affect the Company's operating results we refer you to our filings with the Securities and Exchange Commission, including our annual report on form 10-K for the year ended December 31st, 2002. I will now turn the call over to Dominic.

謝謝。對於我們遇到的技術故障，我們深表歉意。我將快速宣讀——首先我想提醒各位參與者，在今天的電話會議期間，管理層可能會根據 1995 年《私人證券訴訟改革法案》安全港條款的規定，對公司的事件或未來財務業績做出預測或其他前瞻性陳述。我們謹此提醒您，由於許多風險和不確定因素，這些前瞻性陳述可能與實際結果有重大差異。有關影響公司經營績效的因素的更詳細說明，請參閱我們向美國證券交易委員會提交的文件，包括截至 2002 年 12 月 31 日止年度的 10-K 表格年度報告。現在我將把電話交給多明尼克。

Good morning. Sorry for the technical delays but first I'd like to wish which everyone at the Chinese new year. Today is the first day of the year of the monkey. And I believe that maybe because the year of the monkey who likes to be playful and that's why it caused us telephone technical problems.

早安.很抱歉技術上有延誤，但首先我想祝大家中國新年快樂。今天是猴年的第一天。我相信這可能是因為猴年生肖猴，猴子喜歡玩耍，所以才給我們造成了電話技術問題。

But anyway enough digression. Now let's get back to the business and while many of our staff and clients are celebrating Chinese New Year today we are excited to announce the financial results for the fourth quarter and full year of 2003.

好了，就此打住吧。現在讓我們回到正題。雖然我們許多員工和客戶今天都在慶祝中國新年，但我們很高興地宣布 2003 年第四季和全年的財務表現。

And I'm pleased to say that 2003 was the seventh consecutive year of record earnings for East West Bancorp. We are especially pleased with the results for the fourth quarter of the year which was -- I believe -- the strongest financial performance the bank has ever generated during the quarter. We achieved record total assets, loans, deposits, and earnings as well as the highest core interest margin and return on assets in our history while maintaining superior asset quality levels.

我很高興地宣布，2003 年是東西銀行連續第七年創下獲利紀錄。我們對今年第四季的業績尤其感到滿意，我認為這是該行有史以來第四季取得的最強勁的財務業績。我們實現了總資產、貸款、存款和收益的歷史新高，以及核心息差和資產回報率的歷史最高水平，同時保持了卓越的資產品質水平。

Shortly Julia will provide an overview of the financial results for the quarter but I would like to discuss a few items related to the quarter and provide an outlook for 2004.

Julia 稍後將概述本季的財務業績，但我想先討論一些與本季相關的事項，並展望 2004 年。

Loan growth proved to be one of the primary drivers of the quarter's results with total loans increased -- increasing 40 percent for the year and 11 percent sequentially from the third quarter.

貸款成長是本季業績的主要驅動因素之一，貸款總額增加——全年成長 40%，季增 11%。

In total, we originated approximately 665 million in non residential loans, a record amount for East West and more than double the origination volume for the fourth quarter of 2002.

我們總共發放了約 6.65 億筆非住宅貸款，這是 East West 的創紀錄金額，是 2002 年第四季發放量的兩倍多。

We also originated 75 million in residential mortgages during the quarter. We attributed the strong growth in our loans deduction (ph) to a number of factors.

本季我們也發放了7,500萬筆房屋抵押貸款。我們將貸款扣除額（ph）的強勁成長歸因於多種因素。

First, the lending environment in our core niche markets and in geographic coverage area remain sound, especially in commercial real estate and multifamily centers. Fundamentals in California's real estate market particularly in Southern California appear to be supported by a continued tenant demand for space and a current registry environment.

首先，我們核心細分市場和地理覆蓋區域的貸款環境仍然良好，尤其是在商業房地產和多戶住宅中心領域。加州房地產市場，尤其是南加州房地產市場的基本面似乎得到了租戶對空間的持續需求和當前註冊環境的支持。

While we remain diligent in assessing risk and property value and financial performance, we believe that the market should remain stable with the continued improvement in economy compensating for the impact of high interest rate sometimes in the future.

儘管我們仍會認真評估風險、房產價值和財務業績，但我們相信，隨著經濟的持續改善，市場應該會保持穩定，從而在未來某個時候抵消高利率的影響。

In our own operations, we drove loan growth through the expansion of existing customer relationships as far as the addition of new account officers and support personnel. East West has continually sought to enhance operations through hiring talented relationship focused professionals that appreciate the value added focus of East West.

在我們自己的營運中，我們透過擴大現有客戶關係，增加新的客戶經理和支援人員，來推動貸款成長。東西方公司一直致力於透過聘用有才華、注重人際關係的專業人士來提升營運效率，這些專業人士能夠理解東西方公司注重增值服務的理念。

During the fourth quarter, we took the opportunity to add a meaningful number of such professionals to our family who have already begun making a contribution to our lending and deposit volume. We also capitalized on the strength of our deposit franchise and our careful interest rate risk management to offer selected clients longer-term fixed rate portfolio loans.

第四季度，我們抓住機會，為我們的團隊增添了相當數量的此類專業人士，他們已經開始為我們的貸款和存款量做出貢獻。我們也利用存款業務的優勢和謹慎的利率風險管理，為部分客戶提供長期固定利率投資組合貸款。

This product was geared to a portion of our client base that has a longer-term holding expectation for their commercial properties and wish to lock in today's attractive interest rates. These longer term fixed rates loans account for approximately 25 percent of commercial focus loans for the fourth quarter. In order to mitigate interest rate impact with these loans, we sold approximately 100 million of our 15- and 30-year fixed-rate single-family loan portfolio in the fourth quarter.

這款產品是專門為我們一部分客戶設計的，他們希望長期持有商業房地產，並鎖定當前具有吸引力的利率。這些長期固定利率貸款約佔第四季商業重點貸款的 25%。為了減輕這些貸款的利率影響，我們在第四季度出售了約 1 億美元的 15 年期和 30 年期固定利率單戶住宅貸款組合。

Finally, we have -- over the past year -- focused our retail branch personnel on generating commercial real estate and multifamily loans in addition to their traditional deposit gathering in single-family loans originations. As a result, during the fourth quarter, our Southern California branch personnel alone generated approximately 50 (ph) percent of nonresidential volume, not only adding to overall loan growth but also allowing us to realize even greater efficiencies from our branch infrastructure.

最後，在過去一年裡，我們讓零售分行的人員除了傳統的單戶住宅貸款存款業務外，還專注於開發商業房地產和多戶住宅貸款。因此，在第四季度，光是我們南加州分行的員工就創造了約 50% 的非住宅貸款量，這不僅促進了整體貸款成長，也使我們能夠從分行基礎設施中獲得更大的效率。

For 2004, we estimate net loan growth of 18 to 20 percent, assuming stable interest rates and a loan prepayment rate roughly equal to that in 2003. We believe that the compensation of loans roughly mirror that of last year with a potential for higher growth in commercial business and trade financing loans as the economy strengthens. Given this flat interest rate scenario, we believe that commercial real estate and multifamilies loans in California will continue to experience both solid demand and good market fundamentals.

我們估計，2004 年淨貸款成長率為 18% 至 20%，假設利率保持穩定，貸款提前償還率與 2003 年大致相同。我們認為，貸款補償與去年大致相同，隨著經濟走強，商業和貿易融資貸款有更高的成長潛力。鑑於利率保持平穩，我們認為加州商業地產和多戶住宅貸款將繼續保持強勁的需求和良好的市場基本面。

We also anticipate that any impact of high interest rate on commercial and multifamily loan origination will be more than offset by higher loan demand from a high level of economic growth and a lower level of real estate loan repayments.

我們也預計，高利率對商業和多戶住宅貸款發放的任何影響，都將因經濟高速成長帶來的更高貸款需求以及房地產貸款償還水準的下降而得到抵銷。

Among the other highlights of the quarter include first we continue to expand our deposit franchise as reflected in both the core and total deposits this quarter as well as our cost of deposits.

本季其他亮點包括：首先，我們繼續擴大存款業務，這體現在本季的核心存款和總存款以及存款成本上。

For the fourth quarter our average cost of deposit declined to 84 basis points compared to 1.46 percent a year ago and 86 basis points in the third quarter.

第四季度，我們的平均存款成本下降至 84 個基點，而去年同期為 1.46%，第三季為 86 個基點。

While we remain focused on growing core deposits and maintaining one of the best cost deposits in our peer group, we also recognize the importance of time deposits to our core retail customer base and undertook initiatives in the fourth quarter to gather more time deposits through our branches. And increased level at the end of the fourth quarter by over 100 million compared to the third quarter.

雖然我們仍然專注於增加核心存款，並保持同業中最低的存款成本之一，但我們也認識到定期存款對我們核心零售客戶群的重要性，並在第四季度採取了措施，透過我們的分行吸收更多的定期存款。第四季末的水準比第三季增加了1億多。

We anticipate deposit growth in 2004 of approximately 50 percent across all categories with a stable cost deposit within each category as a result of renewed growth in time deposits and a modest increase in time deposits after (indiscernible) total deposits, we believe that our cost of deposits for the year may increase by 4 or 5 basis points. This again in terms of flat interest rate environment although we are watchful for the risk of a more competitive deposit pricing environment result from the anticipation of higher overall interest rates. We continue to explore methods to mitigate such risks.

我們預計 2004 年所有類別的存款將增加約 50%，並且由於定期存款的重新增長以及在（無法辨別的）總存款之後定期存款的適度增長，每個類別的存款成本將保持穩定。我們認為，我們當年的存款成本可能會增加 4 或 5 個基點。就利率平穩環境而言，我們仍然保持警惕，因為市場預期整體利率將會上升，這可能會導致存款定價環境更具競爭性。我們將繼續探索降低此類風險的方法。

Finally, I will discuss our outlook for 2004. As provided in this morning's release we have set an initial 2004 earnings per share estimate of between $2.74 and $2.78 -- representing growth of 16 to 17 percent. Driving this growth is the loan and deposit increases I discussed earlier. The assumption of a stable interest rate environment and a margin and a 4.3 to 4.45 percent range, an efficiency ratio in the high 30s range and an effective tax rate of 35 to 36 percent.

最後，我將談談我們對2004年的展望。正如今天早上發布的公告中所述，我們初步預測 2004 年每股收益在 2.74 美元至 2.78 美元之間，增長 16% 至 17%。推動這一增長的是我之前提到的貸款和存款增加。假設利率環境穩定，利差在 4.3% 至 4.45% 的範圍內，效率比率在 30% 以上，有效稅率在 35% 至 36% 之間。

We feel confident these assumptions are reasonable and achievable, given our market presence and reputation and our ability to generate further leverage from our existing operating infrastructure.

鑑於我們的市場地位和聲譽，以及我們利用現有營運基礎設施進一步擴大影響力的能力，我們相信這些假設是合理且可實現的。

In addition, we will continue to focus on originating high-quality loans that meet our stringent underwriting guidelines and to maintain our strong asset quality levels. I will now turn the call over to Julia to discuss the details of these results.

此外，我們將繼續專注於發放符合我們嚴格承銷準則的高品質貸款，並維持我們強勁的資產品質水準。現在我將把電話交給茱莉亞，讓她來討論這些結果的細節。

Thank you, Dominic. I will provide summary of the key results for the quarter. The details of our financial performance were included in this morning's release so I will focus on a few selected items. East West generated record net income in the fourth quarter earning 16.4 million -- 30 percent above a year ago.

謝謝你，多米尼克。我將提供本季主要業績的總結。今天早上發布的公告中已經包含了我們財務表現的詳細情況，所以我將重點放在其中幾個方面。東西方集團第四季淨利創歷史新高，達 1,640 萬美元，比去年同期成長 30%。

This represents earnings per share for the quarter of 65 cents -- a 25 percent increase from the fourth quarter of 2002. The net interest margins for the fourth quarter equal 4.34 percent, the highest core interest margin in our history. This compares to 3.83 percent a year ago and the core 4.26 percent last quarter. As we work to gather additional time deposits in our branch networks, we anticipate a slight increase in the cost of deposits.

該季度每股收益為 65 美分，比 2002 年第四季成長了 25%。第四季淨利差為 4.34%，是我們歷史上最高的核心息差。這與一年前的 3.83% 和上季度的核心經濟增速 4.26% 相比有所下降。隨著我們在分行網路中增加定期存款，我們預計存款成本會略有上升。

We also anticipate a slight increase in our yield on earnings assets -- primarily loans -- as we continue to grow the loan portfolio. As a result, we expect a net interest margin for 2004 in the 4.30 percent to 4.45 percent range, driven by the rate of loan growth with minimum impact from deposit repricing.

隨著貸款組合的不斷擴大，我們預計獲利資產（主要是貸款）的收益率也會略有上升。因此，我們預計 2004 年淨利差將在 4.30% 至 4.45% 之間，主要受貸款成長率的推動，存款重新定價的影響最小。

In the fourth quarter, we again generated strong increases in fee income. Core recurring (ph) noninterest income which excludes (indiscernible) and sale of loans and other assets and amortization of negative intangibles rose 20 percent to 7.5 million.

第四季度，我們的手續費收入再次實現了強勁成長。核心經常性（ph）非利息收入（不包括（無法辨認的）和貸款及其他資產的出售以及負無形資產的攤銷）增長了 20%，達到 750 萬。

For 2004, we anticipate a flat level of noninterest income, due primarily to a decrease in the level of secondary marketing income. During 2003, East West as did many banks experienced a significant increase in the volume of residential mortgage lending, particularly fixed-rate loans. For interest rate exposure reasons we sold approximately 280 million of these fixed-rate loans generating over 5.7 million in revenue for the full year 2003.

2004 年，我們預計非利息收入將保持平穩，這主要是由於二級市場收入水準下降所致。2003年，東西銀行和許多其他銀行一樣，房屋抵押貸款量大幅成長，尤其是固定利率貸款。出於利率風險敞口的考慮，我們在 2003 年全年售出了約 2.8 億筆此類固定利率貸款，產生了超過 570 萬的收入。

We anticipate a more normalized residential mortgage market in 2004 and a decrease in secondary marketing income. While we expect other core fee income line items to increase by 10 percent to 12 percent, the overall level of noninterest income should remain flat compared to last year. Noninterest expense for the quarter totaled 21.1 million, 29 percent above the prior year period.

我們預計 2004 年住宅抵押貸款市場將更加正常化，二級市場收入將下降。雖然我們預計其他核心費用收入項目將成長 10% 至 12%，但與去年相比，非利息收入的總體水準應該保持不變。本季非利息支出總額為 2,110 萬，較上年同期成長 29%。

Cash operating expenses -- which excludes the amortization of intangibles and investments in affordable housing partnerships -- totaled 18.7 million, 28 percent higher than a year ago. The higher operating expenses were related to higher compensation, occupancy and other expenses, resulting from the general growth of the bank.

現金營運支出（不包括無形資產攤銷和對經濟適用房合作項目的投資）總計 1,870 萬，比上年同期成長 28%。營運費用增加與薪資、租金和其他費用增加有關，這是由於銀行整體發展所致。

During the fourth quarter, we added a number of relationships and BackOffice support positions. As a result of the new positions, as well as anticipated growth in loans and deposit this year we expect a 17 to 19 percent increase in the dollar amount of core noninterest expense for 2004.

第四季度，我們新增了多個客戶關係維護和後台支援職位。由於新增職位，以及預計今年貸款和存款的成長，我們預計 2004 年核心非利息支出美元金額將成長 17% 至 19%。

The efficiency ratio for the fourth quarter equals 38.9 percent and we anticipate an efficiency ratio for 2004 in a similar range.

第四季的效率比率為 38.9%，我們預期 2004 年的效率比率也會在類似的範圍內。

The effective tax rate for the fourth quarter was 33.2 percent compared to 29.5 percent for the fourth quarter of 2002. The higher tax rate reflects the elimination of the (indiscernible) in the fourth quarter of 2002 offset by additional tax credits from new investments in affordable housing partnership made in 2003. During 2003, East West did not have a REIT in place and did not realize any benefits from such a structure.

第四季的實際稅率為 33.2%，而 2002 年第四季的實際稅率為 29.5%。較高的稅率反映了 2002 年第四季度取消了（無法辨認的）部分，但被 2003 年對經濟適用房合作項目的新投資帶來的額外稅收抵免所抵消。2003 年，東西方公司沒有設立 REIT，也沒有從這種結構中獲得任何好處。

We believe that the tax benefits realized prior to 2003, a cumulative 32 cents per share, were appropriate and fully defensible (ph) under the existing tax codes and we have not established any reserves for benefits realized in prior years. We are aware of the recent announcement from the California Finance (ph) Tax Board and will monitor the developments in this matter carefully. We anticipate an effective tax rate for 2004 of 35 to 36 percent.

我們認為，2003 年之前實現的稅收優惠（累計每股 32 美分）是適當且完全合理的（ph），符合現行稅法，因此我們沒有為以前年度實現的優惠設立任何準備金。我們已註意到加州財政稅務委員會最近發布的公告，並將密切關注此事的進展。我們預計 2004 年的實際稅率為 35% 至 36%。

We will, again, very pleased with our asset quality of ratio for the fourth quarter with both the level of nonperforming assets and total loan losses at the lower end of our targeted range. Total nonperforming assets at year end 2003 equals 6.6 million or 16 basis points of total assets, compared to 12.2 million or 37 basis points a year ago. Our targeted level of NPA for 2004 remains (indiscernible) under 50 basis points.

我們對第四季度的資產品質比率再次感到非常滿意，不良資產水準和貸款總損失均處於我們目標範圍的下限。截至 2003 年末，不良資產總額為 660 萬，佔總資產的 16 個基點，而一年前為 1,220 萬，佔總資產的 37 個基點。我們2004年的目標不良貸款率仍（難以辨認）低於50個基點。

For all 2003, net chargeoffs equal 1.5 million or six basis points of average loans compared to 2.5 million or 11 basis points for full year 2002. We anticipate net chargeoff for 2004 to be at or below the 35 basis point targeted level for the year. The allowance for loan losses at the end of the year equaled 39.2 million or 1.20 percent of total loans.

2003 年全年淨沖銷額為 150 萬，相當於平均貸款額的 6 個基點，而 2002 年全年淨沖銷額為 250 萬，相當於平均貸款額的 11 個基點。我們預計 2004 年淨沖銷額將達到或低於該年度 35 個基點的目標水準。年末貸款損失準備金為 3,920 萬，佔貸款總額的 1.20%。

As detailed in our last conference call, during the third quarter, we reclassified approximately 5.7 million from the allowance to a liability line item. These amounts were previously allocated allowances for off-balance sheet commitments for our trade finance and affordable housing activities. As a result, our allowance as a percentage of loans decreased from last year's level to 1.5 percent. We provided 2.3 million of loan losses for the fourth quarter, compared to 2.6 million a year ago.

正如我們在上次電話會議中詳細介紹的那樣，在第三季度，我們將大約 570 萬美元從準備金重新歸類為負債項目。這些款項先前已分配給我們的貿易融資和經濟適用房活動的表外承諾。因此，我們的撥備佔貸款的比例從去年的水準下降到 1.5%。第四季我們提列了230萬的貸款損失準備金，而去年同期為260萬。

Based on anticipated loan growth, we expect the total from indiscernible approximately 12 million or 20 percent above the 2003 level. Our targeted level of allowance for 2004 is 1.2 to 1.25 percent of loans.

根據預期的貸款成長，我們預計總額將達到約 1,200 萬，比 2003 年的水準高出 20%。我們2004年的目標準備水準為貸款額的1.2%至1.25%。

Our portfolio remains well diversified and granular and loan to value remains very strong. Commercial real estate as of year end of 2003 had an average balance of 1.2 million average loan to value of 58 percent and average seasoning of 2.1 years.

我們的投資組合依然保持良好的多元化和細分化，貸款價值比仍然非常強勁。截至 2003 年底，商業房地產的平均餘額為 120 萬，平均貸款價值比為 58%，平均帳齡為 2.1 年。

Mortgage family loans had an average balance of approximately 500,000, 64 percent average loan to value and average seasoning of 1.8 years. Construction loans had an average balance of 1.7 million, 67 percent average loan to value and 1.3 years of average season. Single-family residential loans had an average balance of 223,000, 58 percent average loan to value and two years of seasoning.

家庭抵押貸款的平均餘額約為 50 萬，平均貸款價值比為 64%，平均帳齡為 1.8 年。建築貸款的平均餘額為 170 萬，平均貸款價值比為 67%，平均季節為 1.3 年。單戶住宅貸款的平均餘額為 223,000，平均貸款價值比為 58%，貸款期限為兩年。

Finally our commercial business and [indiscernible]finance loans had an average balance of 423,000 and 2.3 years average seasoning. I will now turn the call back to Domenic.

最後，我們的商業貸款和[無法辨認的]金融貸款的平均餘額為 423,000，平均帳齡為 2.3 年。現在我將把電話轉回給多明尼克。

Thank you, Julia. Again I would like to apologize for the earlier interruption and delay due to the telephone technical problems. And, anyway, I would like to reiterate that we had a great 2003 in terms of financial performance and during the fourth quarter we had very strong momentum. In fact, even the first few weeks of January we continue to have this strong momentum and, therefore, there's no reason for me to believe that 2004 would not be another year of record earnings and we look forward to talking to you again next time. But at this point I would like to open the call to questions.

謝謝你，茱莉亞。再次為先前因電話技術問題造成的中斷和延誤致歉。總之，我想重申一下，我們在 2003 年的財務表現非常出色，而且在第四季度我們取得了非常強勁的成長勢頭。事實上，即使在一月份的前幾週，我們仍然保持著這種強勁的勢頭，因此，我沒有理由相信2004年不會是又一個創紀錄盈利的年份，我們期待下次再與您交談。但現在我想開放提問環節。

[Operator Instructions]

[操作說明]

James Abbott of FBR.

FBR的詹姆斯·阿博特。

Good quarter. Very good quarter. Wonder if I could touch on a couple of different things. Wonder quickly housekeeping item? What are the terms of the CD marketing? Are you shooting for longer-term CDs in anticipation of rates rising?

本季表現不錯。本季表現非常出色。我想知道我是否可以談談幾個不同的方面。想知道快速清潔家居用品是什麼嗎？CD行銷的條款是什麼？您是否計劃購買長期定期存款以應對利率上漲？

Right now, we're offering CD promotion the curmudgeon from eight months to 15 months because we do want to capture the people who want to lock in a longer-term CD.

目前，我們向那些想要鎖定長期 CD 的客戶推出 CD 促銷活動，期限從 8 個月延長至 15 個月，因為我們確實想要吸引那些想要鎖定長期 CD 的客戶。

Okay. Thanks very much. And a couple of other ones. On looking into 2004, what are your hiring plans? Obviously did a fair amount of hiring in the fourth -- fourth quarter. What are you looking for as far as staff increases, production officers and so forth?

好的。非常感謝。還有其他幾個。展望2004年，你們的招募計畫是什麼？顯然，第四季進行了相當多的招募。您在人員增加、生產主管等方面有什麼需求？

We definitely have plans to continually increase staff, the way we looked at it is we look at the market conditions as long as there are good talented people that can create additional value for East West Bank. We are always out there looking for people. And I think that the market condition is such that there may be one year that is a little bit more challenging to hire people and there are others that may be easier and so far I mean I would say that in the third and fourth quarter of year 2003, I think the market condition was a little bit more -- really better in terms for us to hire better, talented people and we expect in 2004 we will continue to hire more talented people out there that can help East West to continue growing.

我們肯定會繼續增加員工人數，我們看待這個問題的方式是，只要有優秀的人才能夠為華美銀行創造更多價值，我們就會關注市場狀況。我們一直在尋找人才。我認為市場狀況是這樣的：某一年招募人員可能會比較困難，而其他年份則會比較容易。就目前而言，我認為 2003 年第三季和第四季的市場狀況要好一些，這有利於我們招募到更優秀、更有才華的人才。我們預計 2004 年我們將繼續招募更多優秀人才，以幫助 East West 繼續成長。

Okay and were most of the people that were hired in the third and fourth quarter, are there salary expenses fairly baked into that expanse that (indiscernible) [inaudible]?

好的，那麼第三季和第四季僱用的大多數人，薪資支出是否已經相當準確地包含在這些支出中了（聽不清楚）[聽不清楚]？

In terms of what, salary expanse (indiscernible) in terms of -- compared to what?

就什麼而言，薪資支出（無法辨認）－與什麼相比？

In other words, the $8.3 million compensation expense. Does that include most of the people that you hired during the quarter or should we expect some sort of pop in the first quarter 2004?

換句話說，就是830萬美元的補償支出。這是否包括您在本季度僱用的大部分員工，還是我們應該預期 2004 年第一季出現某種程度的員工成長？

It should be very stable.

它應該非常穩定。

Joe Monford of RBC Capital Markets.

加拿大皇家銀行資本市場的喬·蒙福德。

Good morning and happy new year. I guess a couple of questions. First the margin in the quarter came in a little better than expected. Wonder, can you talk a bit more about what was driving that? Was it continued improvement in earning asset mix or a lower cost of funds? Was there any kind of prepayment penalties or interest recoveries that may have helped that as well?

早安，新年快樂！我想問幾個問題。首先，本季利潤率略優於預期。不知道，您能再詳細說說是什麼原因促使您這麼做嗎？是獲利資產組合的持續改善，還是資金成本的降低？是否有任何提前還款罰金或利息追償措施也對此有所幫助？

Most of the margin increase was contributed by the yield and the mix of the earnings asset. Cost of funds like reduction is very minor for the fourth quarter and we do expect with the promotion on the CD, there's some variation, you know, the cost of funds may increase slightly because right now the average CD cost of funds is about 1.6 percent and we're offering for [indiscernible] eight months 1.68 all the way to 15 months at 2.08 percent so that's a likelihood that cost of funds may [indiscernible] little bit, especially if we end up with quite a bit strong interest in the CD vs. the [indiscernible] or non CD.

利潤率的成長主要歸功於收益率和獲利資產組合的提高。第四季資金成本的降低幅度非常小，而且我們預計隨著CD的促銷活動，資金成本可能會略有波動，因為目前CD的平均資金成本約為1.6%，而我們提供的CD期限從8個月（1.68%）到15個月（2.08%）不等，因此資金成本可能會略有上升，尤其是在CD相對於非CD產品表現出強勁的興趣情況下。

Okay and of the loan growth you saw in the quarter, what would you kind of estimate was kind of the percentage coming from the mainstream business and as opposed to more just the Chinese-American niche?

好的，那麼在您看到的本季貸款成長中，您估計有多少百分比來自主流企業，又有多少百分比來自華裔美國人小眾市場？

I would say more than 50 percent come from the mainstream -- quite consistent with what we have had in the past.

我認為超過 50% 的人來自主流群體——這與我們過去的情況相當一致。

Right okay, and then, lastly, just asking about hiring plans. What about any plans for opening new branches in '04?

好的，最後，我想問一下招募計畫。2004年有開設新分店的計畫嗎？

Yes we do have plans to open. At this moment, we have plans to open one additional branch in Northern California and that probably will be in the late second-quarter or third-quarter of 2004. And so that's and within our budget currently that's the only additional plant branch that we plan to open. The reason being is that we still feel very strongly that within our current operating infrastructure branch network there's still plenty of room for us to grow additional deposits and loan origination.

是的，我們有開業計劃。目前，我們計劃在北加州開設一家新分店，時間可能是在 2004 年第二季末或第三季。所以，在目前的預算範圍內，這是我們計劃開設的唯一一家新工廠分店。原因是我們仍然堅信，在我們目前的營運基礎設施分公司網路中，我們還有很大的空間來增加存款和貸款發放。

I would take that's a traditional branch as opposed to a 99 Ranch (ph) Store.

我認為那是一家傳統分店，而不是99大華超市（菲律賓）。

Yes this will be a traditional branch. The reason for this is the primary asset additional hub to fuel in the linkage for all our branch network in Northern California.

是的，這將是一家傳統分行。其主要資產是額外的樞紐，為我們在北加州的所有分支機構網路提供連接。

Brett Rabatin of FTN Midwest Research.

FTN Midwest Research 的 Brett Rabatin。

Had some questions just related to sort of an earning mix funding and then a margin. Was curious, obviously, the margin was better in the fourth quarter due to continued increase in the relative contributional loans to earning assets so, first, I was curious to know kind of how much more liquidity you might be comfortable with reducing and then in relation to the margin guidance which the low end is not much lower than the present margin with the CD initiative and lower deposit growth assumptions than loan growth assumptions, wanted to know how that margin gets maintained at a profit net level? Sorry for the long question.

我有一些關於收益組合、資金來源和利潤率的問題。顯然，我很好奇，第四季利潤率有所提高，是因為貸款佔獲利資產的相對比例持續成長。所以，首先，我想知道您認為可以接受的流動性削減幅度有多大。其次，關於利潤率指引，由於CD計劃和低於貸款成長假設的存款成長假設，其下限與目前的利潤率相差不大，我想知道如何在淨利潤水準上維持這一利潤率？抱歉問題有點長。

In terms of the margin and the liquidity we feel pretty comfortable based upon what we have seen so far. We have very strong loan growth that may continue in 2004. That's why we are projecting 18 to 20 percent. The deposit growth and (indiscernible) projecting 15 percent? That may result in about 103 percent loan to deposits. However we are very comfortable with the liquidity, because we have a very large available (indiscernible) advances to fund liquidity. And so far those rates have been very attractive for one year to two year advances and we will probably increase the use of the (indiscernible) advances in 2004.

就目前的情況來看，我們對利潤率和流動性都感到相當滿意。我們的貸款成長勢頭非常強勁，這種勢頭可能會在2004年繼續保持。這就是為什麼我們預測成長率為 18% 到 20% 的原因。存款成長率和（聽不清楚的）預計為 15%？這可能導致貸款存款比達到約103%。但是我們對流動性非常有信心，因為我們有大量可用的（無法辨別的）預付款來為流動性提供資金。到目前為止，這些利率對於一年到兩年的貸款來說非常有吸引力，我們可能會在 2004 年增加（無法辨認的）貸款的使用。

Okay, so you (indiscernible) these one to two year advances, many overnight funding or will it [indiscernible] ?

好的，所以你（聽不清楚）這些一到兩年的預付款，很多都是一夕之間獲得的資金，還是會（聽不清楚）？

That's correct. Combination. What we do is that if one year happened to be attractive because interest went down, we may lock in one year but otherwise like from time to time we also used to overnight borrowings at federal home and bank.

沒錯。組合。我們的做法是，如果某一年利率下降，恰好很有吸引力，我們可能會鎖定一年的利率；但除此之外，我們有時也會在聯邦住房銀行進行隔夜借款。

OK and then in relation to trade finance and business lending, was just curious -- I was impressed with loan growth in the fourth quarter and it sounds like you expect a continuation of relatively high growth levels so I was curious to know -- you know, sort of your present pipeline is a lot more C&I related in business and trade finance or if there was any distinctive trends in your expectations in '04 in terms of loan growth?

好的，關於貿易融資和商業貸款，我很好奇——我對第四季度的貸款增長印象深刻，而且聽起來你們預計會繼續保持相對較高的增長水平，所以我很好奇——你知道，你們目前的業務和貿易融資業務中，企業和工業貸款業務是否比較多？或者說，你們對2004年貸款成長的預期是否有任何明顯的趨勢？

Regarding to the C&I and trade finance, where it's less a commercial real estate than multifamilies, this is kind of an interesting scenario. We always have higher growth in terms of percentage from trade finance and C&I loans. However, as you look at our real estate portfolio, it's a much much bigger portfolio so, therefore, even though it does not have the same kind of percentage growth, overall, dollar amount is substantially higher than the trade and C&I. So I would say at the end of the day, if you look at 2004, we expect nice growth coming from all different categories but it will be very much like 2003, in terms of we probably have a higher percentage growth in trade finance and in commercial loans but that [indiscernible] multifamily and commercial real estate. However in terms of total dollar amount, we still expect that commercial real estate and multifamilies will be the primary dollar contribution to the overall balance sheet and income.

至於工商業和貿易融資領域，與其說是商業地產，不如說是多戶住宅，這算是個有趣的現象。從貿易融資和工商貸款來看，我們的成長率一直較高。然而，當你查看我們的房地產投資組合時，你會發現它是一個規模大得多的投資組合，因此，即使它的百分比增長與貿易和工商業投資組合不同，但總體而言，其金額要高得多。所以總的來說，如果你展望 2004 年，我們預計各個領域都會有不錯的增長，但與 2003 年的情況非常相似，貿易融資和商業貸款的增長百分比可能會更高，但多戶住宅和商業房地產的增長百分比則可能較低。然而，就總金額而言，我們仍然預期商業房地產和多戶住宅將是整體資產負債表和收入的主要資金來源。

Okay and then one last question and I'll turn it over to someone else. In relation to the income in '04, was just curious to hear thoughts on the different lines of business, letter of credit, and sort of the other miscellaneous distance lines that have during certain quarters added decent amounts of income?

好的，最後一個問題，問完我就把問題交給別人。關於 2004 年的收入，我只是好奇想聽聽大家對不同業務線、信用證以及其他一些在某些季度帶來可觀收入的雜項業務線的看法？

We expect growth from just about every single categories of our fee income with the exception of our residential mortgage division. Obviously, we all looked at the refi market for the last two years, has been extremely good and our current projection is that we expect this single-family residential mortgage division to have probably around 25 percent of reduction in terms of the fee incomes that they were able to generate by selling the fixed-rate loans to the secondary markets because every time we originate a fixed-rate loan most of them we do not keep in our portfolio. (indiscernible) same day sell it to the secondary market. So in terms of that type of transactions, we expect a 25 percent reduction. But then the difference, I think, pretty much is going to be outset against growth of fee income, international deposit in terms of trade finance, and also with branches and so forth.

除了住宅抵押貸款部門外，我們預計幾乎所有費用收入類別都將實現成長。顯然，過去兩年我們都關注了再融資市場，市場表現非常出色。我們目前的預測是，單戶住宅抵押貸款部門透過將固定利率貸款出售給二級市場而獲得的費用收入可能會減少約25%，因為我們每次發放固定利率貸款時，大部分都不會保留在我們的投資組合中。 （聽不清楚）當天就賣給二級市場。因此，就這類交易而言，我們預計將減少 25%。但我認為，真正的差異主要在於手續費收入的成長、貿易融資方面的國際存款，以及分公司等方面的成長。

[Operator Instructions]

[操作說明]

Todd Stender from Crowell, Weedon & Company.

來自 Crowell, Weedon & Company 的 Todd Stender。

I have just one question. If you could touch on loans to deposits. If you could talk about that percentage relative to where it is and where it was about a year ago and just talk about your philosophy as far as the bank liquidity and where you're comfortable seeing that ratio heading relative to maybe the bank's long-term targets?

我只有一個問題。如果您能談談貸款和存款方面的問題就更好了。如果您能談談這個百分比相對於當前水平和大約一年前水平的變化情況，並談談您對銀行流動性的看法，以及您認為該比率相對於銀行長期目標應該達到的水平，那就太好了。

Our loans to deposit ratio have increased this year compared to last year. We are right now fairly close like in the high 90s and we do think if we are able to grow the loans by 20 percent this year that we will reach a little bit higher than 100 percent loan to deposit ratio. But because of our availability of the lines inside a home loan bank, that is fairly significant. We are comfortable about the liquidity. In terms of the long run, we probably would like to see more like 85 to 90 percent loan to deposit ratio. But in the past we have run around 100 percent loan to deposit ratio during the period when there's strong growth in the loans. Because sometimes it will take some time for us to catch up. We want to see the loan growth first and if we have to or do a very aggressive push on the deposits to lower the low term deposit ratio.

今年我們的貸款存款比率比去年有所上升。我們目前已經相當接近目標，大約在 90% 以上，我們認為，如果今年貸款能夠成長 20%，那麼我們的貸款存款比率將略高於 100%。但由於我們能夠利用房屋貸款銀行內部的資源，這一點就顯得非常重要了。我們對流動性狀況感到滿意。從長遠來看，我們可能希望看到貸款存款比率達到 85% 到 90%。但過去在貸款強勁成長時期，我們的貸款存款比率曾達到 100% 左右。因為有時候我們需要一些時間才能趕上進度。我們首先希望看到貸款成長，如果必要的話，我們會大力推動存款，以降低低定期存款比例。

At this time, there are no further questions.

目前沒有其他問題了。

I went to thank you all for joining our call again today. And I look forward to talking to all of you at next quarter at our conference call. Thank you.

我再次感謝大家參加我們的電話會議。我期待在下個季度的電話會議上與大家交流。謝謝。

Thank you. This concludes your conference. You may now disconnect.

謝謝。會議到此結束。您現在可以斷開連線了。