East West Bancorp Inc (EWBC) 2013 Q4 法說會逐字稿

Good morning, good afternoon, or good evening. Welcome to the East West Bancorp fourth-quarter 2013 earnings conference call. All participants will be in listen-only mode.

早安、下午好或晚上好。歡迎參加東西行2013年第四季財報電話會議。所有參與者將處於唯讀模式。

(Operator Instructions)

（操作說明）

After today's presentation, there will be an opportunity to ask questions.

今天的報告結束後，將有機會提問。

(Operator Instructions)

（操作說明）

Please note this event is being recorded. I would now like to turn the conference over to Ms. Kelly Adams, the Senior Vice President. Please go ahead.

請注意，本次活動正在錄影。現在我將把會議交給高級副總裁凱莉·亞當斯女士。請繼續。

Good morning, and thank you for joining us to review the financial results of East West Bancorp for the fourth quarter and full year of 2013.

早安，感謝各位參加本次會議，共同回顧東西銀行2013年第四季及全年的財務表現。

Here to review the results are Dominic Ng, Chairman and Chief Executive Officer; Julia Gouw, President and Chief Operating Officer; and Irene Oh, Executive Vice President and Chief Financial Officer. We will then open the call to questions.

出席本次會議並審查結果的有：董事長兼執行長 Dominic Ng；總裁兼營運長 Julia Gouw；以及執行副總裁兼財務長 Irene Oh。接下來我們將開放提問環節。

Second, we would like to caution you that during the course of the call, management may make projections or other forward-looking statements regarding events or future financial performance of the Company within the meaning of the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may differ materially from the actual results due to a number of risks and uncertainties.

其次，我們想提醒您，在電話會議期間，管理階層可能會根據 1995 年《私人證券訴訟改革法案》的安全港條款，對公司未來的事件或財務表現做出預測或其他前瞻性陳述。由於存在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。

For a more detailed description of factors that affect the Company's operating results, please refer to our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2012. Today's call is also being recorded and will be available in replay format at Eastwestbank.com. I will now turn the call over to Dominic.

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 2012 年 12 月 31 日止年度的 10-K 表格年度報告。今天的電話會議也將被錄音，並將在 Eastwestbank.com 上提供回放。現在我將把電話交給多明尼克。

Thank you, Kelly. Good morning, and thank you for joining us. Yesterday afternoon, we were pleased to report financial results for the fourth quarter and for the full year. 2013 was another year of record earnings for East West, and we achieved many financial successes.

謝謝你，凱莉。早安，感謝各位的參與。昨天下午，我們很高興地公佈了第四季度和全年的財務業績。2013年對東西方來說又是創紀錄的一年，我們取得了許多財務上的成功。

East West reported strong earnings of $75.8 million, or $0.55 per diluted share for the fourth quarter. We increased full-year net income by 5%, or $13.4 million to a record $295 million from $281.7 million in 2012 and increased earnings per diluted share by $0.21, or 11% from $1.89 in 2012. In 2013, we achieved the highest net income in the history of the bank, grew loan and deposits to record levels, and experienced strong improvements in credit qualities, while maintaining good operating efficiency.

東西方公司公佈第四季獲利強勁，達 7,580 萬美元，即每股攤薄收益 0.55 美元。全年淨收入成長 5%，即 1,340 萬美元，達到創紀錄的 2.95 億美元，而 2012 年為 2.817 億美元；每股攤薄收益成長 0.21 美元，即 11%，而 2012 年為 1.89 美元。2013年，我們實現了銀行史上最高的淨收入，貸款和存款成長至創紀錄水平，信貸品質也得到了顯著改善，同時保持了良好的營運效率。

Also in 2013, our stock price increased over 62%. Our market capitalization was increased to over $4.8 billion as of the end of the year. We also increased common dividends by 50% during the year and bought back 200 million of stock, returning a total of $283 million, or 96% of 2013 net earnings, to our common shareholders. Additionally, we were pleased to announce yesterday a further increase to our annual common stock dividend to $0.72 for 2014, up 20% from last year.

2013年，我們的股價也上漲了62%以上。截至年底，我們的市值已超過 48 億美元。我們還在年內將普通股股利提高了 50%，並回購了 2 億股股票，總共向普通股股東返還了 2.83 億美元，相當於 2013 年淨利的 96%。此外，我們很高興地宣布，2014 年普通股年度股息將進一步提高至每股 0.72 美元，比去年增長 20%。

During 2013, we grew total loans by 20%, or $3 billion, to a record $18.1 billion. Our loan growth was broad-based and came from commercial industrial loans, commercial real estate, and residential loans. Additionally, total deposits grew nicely at 11% or $2.1 billion year to date to a record $20.4 billion, achieved through healthy growth in low-cost commercial deposits.

2013年，我們的貸款總額增加了20%，即30億美元，達到創紀錄的181億美元。我們的貸款成長基礎廣泛，包括商業工業貸款、商業房地產貸款和住宅貸款。此外，截至目前，總存款額成長了 11%，即 21 億美元，達到創紀錄的 204 億美元，主要得益於低成本商業存款的健康成長。

In 2013, net income totaled $295 million, which is the fourth consecutive year of record net income for East West. Once against, our annual return on equity and return on assets ratios were both above many of our peers, at 12.59% and 1.25% respectively. This strong financial performance was accomplished through quality execution on all significant fronts, including loan and deposit growth, operating expense control, and maintaining strong credit quality.

2013 年，淨收入總計 2.95 億美元，這是 East West 連續第四年創下淨收入紀錄。相較之下，我們的年度股本回報率和資產回報率均高於許多同行，分別為 12.59% 和 1.25%。這一強勁的財務業績是透過在所有重要方面（包括貸款和存款成長、營運費用控制和維持良好的信貸品質）的高品質執行而實現的。

During the fourth quarter, we announced the acquisition of MetroCorp Bancshares, Inc, and we closed the merger at the end of business last Friday. MetroCorp is a strategic acquisition for East West and allows us entry into the new markets of Dallas and San Diego and a substantially increased presence in Houston. As of December 31, 2013, MetroCorp had $1.6 billion of total assets, $1.2 billion of loans, and $1.3 billion of deposits. The final consideration we paid for MetroCorp was 1.63 times tangible equity, or a total of $268 million. This translates to $14.33 per share, with two-thirds of the consideration in East West stock and one-third in cash.

第四季度，我們宣布收購 MetroCorp Bancshares, Inc.，並在上週五營業結束時完成了合併。MetroCorp 對 East West 而言是一項策略性收購，它使我們能夠進入達拉斯和聖地牙哥的新市場，並大幅提升我們在休士頓的業務。截至 2013 年 12 月 31 日，MetroCorp 的總資產為 16 億美元，貸款為 12 億美元，存款為 13 億美元。我們為 MetroCorp 支付的最終對價是其有形權益的 1.63 倍，即總計 2.68 億美元。這意味著每股價格為 14.33 美元，其中三分之二的對價以 East West 股票支付，三分之一以現金支付。

We welcome our new employees and customers to East West, and we look forward to offering our expanded services platform and branch network to MetroCorp customers. East West has a long history of successful acquisitions and system conversions. The integration plans are well under way for both Metro Bank and Metro United Bank, scheduled to be completed during the end of the second quarter this year.

我們歡迎新進員工和客戶加入東西方集團，並期待為 MetroCorp 的客戶提供我們擴展後的服務平台和分公司網路。東西方集團在收購和系統改造方面有著悠久的成功歷史。Metro Bank 和 Metro United Bank 的整合計畫正在順利進行中，預計今年第二季末完成。

Also in late December 2013, we opened a new branch in Las Vegas, our first in the state of Nevada. Over the years, we have developed many commercial banking relationships in the Las Vegas region and are optimistic of our ability to generate profitable and sustainable commercial clients in Nevada as well.

同樣在 2013 年 12 月下旬，我們在拉斯維加斯開設了一家新分行，這是我們在內華達州的第一家分行。多年來，我們在拉斯維加斯地區建立了許多商業銀行關係，並對在內華達州創造盈利和可持續的商業客戶充滿信心。

As we started 2014, we are excited about our future opportunities East West has to grow our business and generate strong returns for our shareholders. Although the business environment for the banking industry continue to be challenging, with the ongoing low interest rate environment and regulatory changes, we are confident that East West will continue to perform well. In 2013, we had strong organic growth and also were able to complement our organic growth with a strategic and financially compelling acquisition.

2014 年伊始，我們對 East West 未來的發展機會感到興奮，相信我們能夠拓展業務，為股東創造豐厚的回報。儘管銀行業經營環境依然充滿挑戰，但鑑於持續的低利率環境和監管變化，我們相信東西行將繼續保持良好的業績。2013年，我們實現了強勁的內生成長，同時也透過一項具有戰略意義且財務上極具吸引力的收購，進一步促進了內生成長。

Our strong organic growth stems from the -- our distinct positioning, as the bridge between the east and the west. Globalization is increasing bilateral trade between the US and China, and we see more and more opportunities for East West to provide a unique value to our customers in this sector. We have positioned ourselves to be the natural leader in providing across-border banking services to customers in the US and China. We will continue to make investments in people and infrastructure to better serve our customers and strengthen our core capabilities. Our strong financial results in 2013 reflect the opportunity East West has and our ability to execute successfully. For these reasons, we believe that East West will be able to continue to deliver strong financial results in 2014 and beyond.

我們強勁的內生成長源自於我們獨特的市場定位，也就是作為東西方之間的橋樑。全球化促進了中美雙邊貿易，我們看到東西方在該領域為客戶提供獨特價值的機會越來越多。我們已將自身定位為向美國和中國客戶提供跨境銀行服務的天然領導者。我們將繼續增加對人才和基礎設施的投資，以更好地服務客戶並增強我們的核心能力。我們在 2013 年取得的強勁財務業績反映了東西方所擁有的機會以及我們成功執行的能力。基於以上原因，我們相信東西方集團在 2014 年及以後將持續強勁的財務表現。

With that, I would now turn the call over to Julia to discuss in more detail, our key successes in the fourth quarter and also discuss our expectation for 2014.

接下來，我將把電話交給 Julia，讓她更詳細地討論我們在第四季度取得的主要成就，並討論我們對 2014 年的期望。

Thank you very much, Dominic, and good morning to everyone. I would like to spend a few minutes discussing the loan growth we experienced during the quarter, our net interest margin, and our expectations for the future. Finally, I will review the guidance we provided in the earnings release yesterday for the first quarter and the full year of 2014.

非常感謝你，多明尼克，大家早安。我想花幾分鐘時間討論本季我們貸款的成長情況、淨利差以及我們對未來的預期。最後，我將回顧我們在昨天發布的獲利報告中對 2014 年第一季和全年業績的預期。

Our total loan portfolio increased to a record $18.1 billion at December 31, 2013, an increase of $879.3 million, or 5%, from September 30, 2013, and an increase of $3 billion, or 20%, for the full year. The loan growth for the fourth quarter was driven by strong diversified loan originations throughout the bank. Increases in commercial loans continued to drive our total loan growth, with non-covered commercial and industrial loans, and commercial real estate loans up 10%, or $478.8 million, and 4%, or $172.5 million, respectively.

截至 2013 年 12 月 31 日，我們的貸款總額增至創紀錄的 181 億美元，比 2013 年 9 月 30 日增加了 8.793 億美元，增幅為 5%；全年增加了 30 億美元，增幅為 20%。第四季貸款成長主要得益於全行各領域強勁的多元化貸款發放。商業貸款的成長繼續推動我們的貸款總額成長，其中無擔保商業和工業貸款增加了 10%，即 4.788 億美元，商業房地產貸款增加了 4%，即 1.725 億美元。

Single-family residential loan growth continued to be robust during the fourth quarter of 2013, increasing 6%, or $192 million quarter to date. During the fourth quarter, we originated approximately 940 single-family residential loans, totalling $350 million, with an average loan size of $370,000 and an average loan-to value of 53%. Although still very strong, residential loan originations are down in the fourth quarter as compared to the third quarter, in line with industry trends.

2013 年第四季，單戶住宅貸款成長動能依然強勁，本季成長 6%，即 1.92 億美元。第四季度，我們發放了約 940 筆單戶住宅貸款，總額達 3.5 億美元，平均貸款額為 37 萬美元，平均貸款價值比為 53%。儘管第四季住宅貸款發放量依然強勁，但與第三季相比有所下降，這與產業趨勢一致。

In the coming year, we do expect that the origination volumes will be lower than in 2013. Although the growth in the non-covered portfolio will continue to be offset by the expected reduction in the covered portfolio, at this point, we project that we can grow total loan portfolio by 8% to 10% through the end of 2014.

我們預計來年的​​貸款發放量將低於 2013 年的水準。儘管未擔保貸款組合的成長將繼續被擔保貸款組合的預期減少所抵消，但目前我們預計到 2014 年底，貸款組合總額可以增加 8% 至 10%。

Along with strong growth, we have continued to successfully acquire new commercial deposit relationships, resulting in healthy core deposit growth. Total deposits increased $53.8 million during the quarter, to a record $20.4 billion due to the growth in core deposits to a record $14.6 billion. The strong growth in our core deposits was fueled by an increase in non-interest-bearing demand deposits. As of the end of the year, 29%, or 5.8 billion, of our total deposits were non-interest-bearing demand deposits, the highest ever in the history of the bank.

隨著業務的強勁成長，我們不斷成功拓展新的商業存款關係，從而實現了核心存款的健康成長。本季存款總額增加 5,380 萬美元，達到創紀錄的 204 億美元，主要得益於核心存款成長至創紀錄的 146 億美元。我們核心存款的強勁成長得益於無利息活期存款的增加。截至年底，我們總存款的 29%（即 58 億）為無息活期存款，這是該銀行史上最高的存款比例。

Next, I would like to spend a few moments discussing the net interest income and net interest margin for the fourth quarter and our expectation for 2014. Net interest income, adjusted for the impact of covered loan activity, totaled $198.2 million for the fourth quarter of 2013, an increase of $5.9 million from $192.4 million in the prior quarter. The core net interest margin, including the net impact of $66.8 million to the FDIC indemnification assets due to the covered loan activity and amortization of the FDIC indemnification assets, totaled 3.41% for the fourth quarter of 2013, down 3 basis points from the third quarter of 2013.

接下來，我想花幾分鐘時間討論一下第四季的淨利息收入和淨利差，以及我們對 2014 年的預期。在調整擔保貸款活動的影響後，2013 年第四季淨利息收入總計 1.982 億美元，比上一季的 1.924 億美元增加了 590 萬美元。2013 年第四季核心淨利差（包括因承保貸款活動和 FDIC 賠償資產攤銷而對 FDIC 賠償資產產生的 6,680 萬美元淨影響）總計為 3.41%，比 2013 年第三季下降 3 個基點。

This small compression in the core net interest margin compared to the prior quarter was largely due to the decrease in the adjusted yield under covered loans from 7.7% in the third quarter to 7.18%. Additionally, for the fourth quarter of 2013, the average cost of deposit increased slightly to 31 basis points, up 1 basis point from the third quarter.

與上一季相比，核心淨利差的小幅收窄主要是由於擔保貸款調整收益率從第三季的 7.7% 下降至 7.18%。此外，2013 年第四季平均存款成本略微上升至 31 個基點，比第三季上升了 1 個基點。

Overall, we had a strong quarter and another record-setting year. We increased net interest income slightly, lowered deposit costs, and maintained good expense control, while substantially increasing loans and deposits to record levels. We feel confident that we are building lines of business and making operational improvements that will benefit us for many years to come.

整體而言，我們本季業績強勁，又創下了新的紀錄。我們略微提高了淨利息收入，降低了存款成本，並保持了良好的費用控制，同時大幅提高了貸款和存款，使其達到歷史最高水平。我們相信，我們正在建立的業務線和進行的營運改進將使我們在未來很多年中受益。

Lastly, I would like to provide some additional color on our guidance for 2014. As in the past, in our earnings release yesterday, we provided guidance for the first quarter and full year of 2014. We estimate that fully diluted earnings per share for the full year of 2014 will range from $2.24 to $2.28, increase of $0.14 to $0.18, or 7% to 9% from $2.10 for 2013. For the first quarter of 2014, we estimate fully diluted earnings per share will range from $0.49 to $0.51. We currently estimate that the one-time merger-related charges resulting from the acquisition of MetroCorp will be approximately $7 million after-tax, or $0.05 per share.

最後，我想就我們 2014 年的指導方針補充一些細節。與以往一樣，我們在昨天的獲利報告中提供了 2014 年第一季和全年的業績指引。我們預計 2014 年全年完全稀釋後的每股盈餘將在 2.24 美元至 2.28 美元之間，比 2013 年的 2.10 美元增加 0.14 美元至 0.18 美元，增幅為 7% 至 9%。我們預計 2014 年第一季完全稀釋後的每股收益將在 0.49 美元至 0.51 美元之間。我們目前估計，收購 MetroCorp 產生的一次性合併相關費用稅後約為 700 萬美元，即每股 0.05 美元。

The guidance for the first quarter of 2014 and full year includes the impact of these one-time charges. Including the impact of the $0.05 of merger charges, we currently estimate that the MetroCorp acquisition will be approximately $0.02 accretive to 2014 earnings.

2014 年第一季和全年的業績預期已包含這些一次性費用的影響。計入 0.05 美元的合併費用，我們目前估計 MetroCorp 的收購將使 2014 年的收益增加約 0.02 美元。

Additionally, as discussed by Dominic, we expect to complete the integration of both Metro Bank and Metro United Bank before the end of June of this year. Since MetroCorp operated two different banks, we will have to undergo two separate conversions. As such, we do expect higher operating costs until the integration of the two banks into East West is completed, and therefore, we anticipate the cost savings to occur in the second half of the year.

此外，正如 Dominic 所討論的，我們預計將在今年 6 月底之前完成 Metro Bank 和 Metro United Bank 的整合。由於 MetroCorp 經營兩家不同的銀行，我們將不得不進行兩次單獨的轉換。因此，我們預計在兩家銀行合併為東西銀行完成之前，營運成本會較高，因此，我們預計成本節約將在今年下半年實現。

With that, I would now like to turn the call over to Irene to discuss the fourth-quarter and full-year 2013 financial results in more depth.

接下來，我想把電話交給艾琳，讓她更深入地討論 2013 年第四季和全年的財務表現。

Thank you very much, Julia, and good morning to everyone.

非常感謝你，茱莉亞，大家早安。

I would like to discuss our financial results for the fourth quarter and full year of 2013 in more detail, specifically credit quality, non-interest income, and non-interest expense. Starting with credit quality, the total nonperforming assets, excluding covered assets, to total assets ratio has been under 1% for over four consecutive years, with nonperforming assets of $130.6 million, or 53 basis points of total assets at December 31, 2013. Nonaccrual loans, excluding covered loans, totaled $111.7 million, or 62 basis points of total loans at December 31, 2013, a decrease from 72 basis points of total loans at December 31, 2012.

我想更詳細地討論一下我們 2013 年第四季和全年的財務業績，特別是信貸品質、非利息收入和非利息支出。從信貸品質來看，不包括擔保資產在內的不良資產總額與總資產比率已連續四年多低於 1%，截至 2013 年 12 月 31 日，不良資產為 1.306 億美元，佔總資產的 53 個基點。截至 2013 年 12 月 31 日，不包括擔保貸款的非應計貸款總額為 1.117 億美元，佔貸款總額的 62 個基點，比 2012 年 12 月 31 日的貸款總額的 72 個基點有所減少。

For the fourth quarter 2013, the Company recorded a provision for loan loss for non-covered loans of $6.3 million, as compared to a loan loss provision of $13.8 million for the fourth-quarter 2012. For the full-year 2013, the provision for loan losses for non-covered loans was $18.3 million, a decrease of $41.8 million, or 70% as compared to the year ended 2012. East West continues to maintain a strong allowance for non-covered loans of $241.9 million, or 1.54% of non-covered loans receivable at December 31, 2013.

2013 年第四季度，公司提列了 630 萬美元的非擔保貸款損失準備金，而 2012 年第四季提列的貸款損失準備金為 1,380 萬美元。2013 年全年，未擔保貸款的貸款損失準備金為 1,830 萬美元，比 2012 年末減少了 4,180 萬美元，降幅達 70%。截至 2013 年 12 月 31 日，East West 繼續維持 2.419 億美元的未擔保貸款撥備，佔未擔保應收貸款的 1.54%。

Total net recoveries on non-covered loans totaled $1.3 million for the fourth quarter of 2013, compared to net charge-offs of $334,000 in the third quarter of 2013, and $9.6 million of charge-offs in the fourth quarter of 2012.

2013 年第四季度，未擔保貸款的淨回收總額為 130 萬美元，而 2013 年第三季的淨核銷額為 33.4 萬美元，2012 年第四季的核銷額為 960 萬美元。

During the fourth quarter of 2013, the Company recorded a reversal of provision for loan losses of $820,000 on covered loans. As these loans are covered under loss-share agreements with the FDIC for any charge-offs the Company records income of 80% of the charge-off amount is non-interest income as a net increase in the FDIC receivable, resulting in a net impact to earnings of 20% of the charge-off amount.

2013 年第四季度，公司對已擔保貸款提列了 82 萬美元的貸款損失準備金衝回。由於這些貸款已根據與聯邦存款保險公司 (FDIC) 簽訂的損失分擔協議進行承保，因此公司將核銷金額的 80% 計入非利息收入，作為聯邦存款保險公司應收款的淨增加，從而對收益產生相當於核銷金額 20% 的淨影響。

Additionally, during the fourth quarter and full year of 2013, we recorded an expense of $8.9 million and $49 million, respectively, as a claw-back liability. Under the loss-share agreements with the FDIC, if losses in the covered portfolio do not reach specific thresholds, the bank is required to pay the FDIC a calculated amount. As of December 31, 2013, our total recorded liability to the FDIC for this claw-back liability for both the UCB and the WFIB acquisitions is approximately $75 million.

此外，在 2013 年第四季和全年，我們分別提列了 890 萬美元和 4,900 萬美元的追回負債。根據與聯邦存款保險公司 (FDIC) 的損失分擔協議，如果受保投資組合的損失未達到特定門檻，則銀行必須向聯邦存款保險公司支付計算出的金額。截至 2013 年 12 月 31 日，我們對 FDIC 就 UCB 和 WFIB 收購的追回負債所記錄的總負債約為 7,500 萬美元。

Moving on to non-interest income and expense, East West reported non-interest loss for the fourth quarter of 2013 of $36.6 million, a decrease from a non-interest loss of $41.4 million, and an increase from a non-interest loss of $18.5 million in the third quarter of 2013, and fourth quarter of 2012, respectively. For the full year, the Company reported non-interest loss of $92.5 million, an increase in non-interest loss from $5.6 million in 2012. Additional loss for the year is due to changes in the net reduction of the FDIC indemnification asset and FDIC receivable.

接下來來看非利息收入和支出，East West 報告稱，2013 年第四季非利息虧損為 3,660 萬美元，較 2013 年第三季的 4,140 萬美元非利息虧損有所減少，但較 2013 年第三季和 2012 年第四季的 1,850 萬美元非利息虧損有所增加。該公司全年報告非利息損失為 9,250 萬美元，比 2012 年的 560 萬美元增加。本年度額外虧損是由於 FDIC 賠償資產和 FDIC 應收款項淨減少的變化所致。

In total, fee income, including branch fees, letter of credit and foreign exchange income, loan fees and other operating income totaled $33.4 million in the fourth quarter of 2013, an increase from both the prior-quarter and prior-year periods. During the fourth quarter, we recorded net gains of $4.1 million on the sale of $110 million of government-guaranteed student loans, a slight increase from the third quarter, and $3.9 million increase from the prior-year period.

2013 年第四季度，手續費收入（包括分行費用、信用狀和外匯收入、貸款費用和其他營業收入）總計 3,340 萬美元，比上一季度和去年同期均有所增長。第四季度，我們出售了 1.1 億美元的政府擔保學生貸款，淨收益為 410 萬美元，比第三季度略有增長，比上年同期增長了 390 萬美元。

Moving on to non-interest expense, total non-interest expense for the fourth quarter, excluding amounts to be reimbursed by the FDIC and prepayment penalties on FHLB advances increased $25.3 million, or 26% from the third quarter of 2013 and increased by $24.9 million, or 25% from the fourth quarter of 2012. The increase in non-interest expense quarter over quarter was primarily due to an increase in compensation employee benefits of $5.2 million, an increase in legal expense of $3.8 million, and an increase in the amortization of investments in affordable housing partnerships and other investments of $8.5 million. The increase in compensation and employee benefits compared to the third quarter of 2013 was largely due to an increase in employee headcount that is commensurate with the growth we've experienced and related increase in bonus accruals.

接下來是非利息支出，第四季度非利息支出總額（不包括聯邦存款保險公司應償還的金額和聯邦住房貸款銀行貸款的提前還款罰款）比 2013 年第三季度增加了 2530 萬美元，增幅為 26%；比 2012 年第四季度增加了 2490 萬美元，增幅為 25%。非利息支出較上季增加主要是因為員工福利支出增加 520 萬美元、法律費用增加 380 萬美元以及對經濟適用房合作項目和其他投資的攤銷增加 850 萬美元。與 2013 年第三季相比，薪資和員工福利的增加主要是由於員工人數的增加，這與我們所經歷的成長相符，以及相關的獎金累積增加。

Legal expense increased $3.8 million, or 42%, compared to the third quarter due to increased legal costs and the resolution of outstanding litigation. The increase in the amortization of investments in affordable housing partnerships and other investments of $8.5 million was primarily due to two investments we made during the fourth quarter, where the associated tax credit was primarily for the 2013 tax year.

由於法律成本增加和未決訴訟的解決，法律費用比第三季增加了 380 萬美元，增幅達 42%。經濟適用房合作項目和其他投資的攤銷增加 850 萬美元，主要是由於我們在第四季度進行的兩項投資，相關的稅收抵免主要針對 2013 納稅年度。

During the quarter, amortization expense on these investments increased, but was more than offset by lower income tax and lower effective tax rate during the quarter. Additionally, during the fourth quarter, we increased long-term debt to $226.9 million, up from $187.2 million as of September 30, 2013. The increase in long-term debt during the fourth quarter resulted from an additional $50 million advance on a term loan entered into by the Company, partially offset by $10 million of higher cost junior subordinated debt that was called during the fourth quarter.

本季這些投資的攤銷費用增加，但被本季較低的所得稅和較低的實際稅率所抵銷。此外，在第四季度，我們的長期債務增加到 2.269 億美元，而截至 2013 年 9 月 30 日為 1.872 億美元。第四季長期債務增加是由於公司額外獲得了一筆 5000 萬美元的定期貸款，部分被第四季度被要求償還的 1000 萬美元高成本次級債務所抵消。

Finally, as stated in the earnings release yesterday, East West Board of Directors has declared first-quarter dividends on the common stock. The common stock cash dividend of $0.18 is payable on April -- excuse me, February 18, 2014, to shareholders of record on February 3, 2014. This represents an increase of $0.03 per share, or an increase of 20% from the prior quarterly dividend of $0.15 per share. I'll now turn the call back to Dominic.

最後，正如昨天發布的獲利報告中所述，東西方董事會已宣布派發第一季普通股股息。普通股現金股利每股 0.18 美元將於 2014 年 4 月 18 日（抱歉，應該是 2014 年 2 月 18 日）支付給 2014 年 2 月 3 日登記在冊的股東。這意味著每股增加 0.03 美元，比上一季每股 0.15 美元的股息增加了 20%。現在我將把電話轉回給多明尼克。

Thank you, Irene. I would now open the call to questions.

謝謝你，艾琳。現在開始接受提問。

Thank you. We will now begin the question-and-answer session.

謝謝。現在開始問答環節。

(Operator Instructions)

（操作說明）

And our first question comes from Julianna Balicka of KBW. Please go ahead.

我們的第一個問題來自 KBW 的 Julianna Balicka。請繼續。

Good morning. This is actually David in for Julianna.

早安.其實是戴維代替朱莉安娜上場。

I had a question on the dividend increase. So think about future dividend increases. Do you have a target dividend payout ratio that you target to? Or would that be -- could that be in line with EPS growth in the future?

我有一個關於股息成長的問題。所以要考慮未來的股息成長。你們有目標股利支付率嗎？或者說——這是否與未來的每股盈餘成長相符？

Well, we have some guidelines. We think that a dividend payout of 30% to 35% seems to be a good dividend payout. And depending on the growth, we'll take a look whether we continue to accumulate capital or we need the difference to support our growth. So, but we would like to see that if we increase our EPS every year, that we can continually increasing our dividend each year.

我們有一些指導原則。我們認為 30% 到 35% 的股息支付率似乎是一個不錯的股息支付率。根據成長情況，我們將考慮是否繼續累積資本，或是否需要利用差額來支持我們的成長。所以，我們希望看到，如果我們每年都能提高每股盈餘，那麼我們也能每年持續提高股利。

Okay. And any thoughts on repurchases, now that MCBI has closed?

好的。既然MCBI已經關閉，對於回購有什麼想法嗎？

Well, at this point, I would say that because our capital ratio is at level that we are very comfortable with, and also we are looking at where we are in terms of our growth plan, we don't think that it will be the best use of our capital to do buyback at this point.

嗯，就目前而言，我認為，由於我們的資本充足率處於我們非常滿意的水平，而且考慮到我們的成長計劃，我們認為此時進行股票回購並不是最佳的資本利用方式。

Okay. Thank you. And also a question on the loan growth guidance for 2014, the 8% to 10%. Just want to confirm, that does not include any MCBIs, those based on the total loan from 12/31/2013, right?

好的。謝謝。還有一個關於 2014 年貸款成長預期（8% 至 10%）的問題。我想確認一下，這不包括任何 MCBI，那些是基於 2013 年 12 月 31 日的總貸款額計算的，對嗎？

Correct, yes.

沒錯。

Yes, because MCB -- the Metro Bank, we already picked up $1.1 billion of loans as of December 31. So that is not included in the 8% to 10% growth. The 8% to 10% will be strictly the East West organic growth on a net basis. Okay. That's all I had. Thank you very much.

是的，因為截至 12 月 31 日，MCB（Metro Bank）已經獲得了 11 億美元的貸款。所以這部分不包含在 8% 到 10% 的成長中。這 8% 到 10% 將嚴格指東西方之間的淨有機成長。好的。這就是我全部的家當。非常感謝。

Thank you. And our next question comes from Ebrahim Poonawala of the Bank of America Merrill Lynch. Please go ahead.

謝謝。下一個問題來自美國銀行美林證券的 Ebrahim Poonawala。請繼續。

Good morning, guys.

各位早安。

Good morning, Ebrahim.

早安，易卜拉欣。

Just had a quick follow-up question on loan growth. One, in terms of, obviously, your guidance implies a slowdown relative to the growth we've seen for the last three quarters. Just wanted to get a sense in terms of specific -- I know you mentioned, Julia, in your opening remarks, that originations are going to be lower 2014 versus last year. But wanted to get a sense of what areas you see growth slowing in, and is there -- are you being conservative? And because it seems like what we are hearing from other banks, especially on the commercial side, that things are picking up. So loan growth could actually strengthen as we move into 2014. So I would appreciate if you can give any color on that.

關於貸款成長，我還有一個後續問題想問。第一，很顯然，您的指引意味著相對於過去三個季度我們看到的成長速度，成長速度將會放緩。我只是想了解具體情況——我知道朱莉婭，你在開場白中提到，2014 年的貸款發放將比去年減少。但我想了解您認為哪些領域的成長正在放緩，以及—您是否持保守態度？而且，我們從其他銀行，特別是商業銀行方面聽到的消息似乎也表明，情況正在好轉。因此，隨著我們進入2014年，貸款成長實際上可能會增強。所以，如果您能提供一些相關信息，我將不勝感激。

In terms of our projection, we looked at a few different scenario. One is what the market condition. The other one is East West balance sheet. If we look at what we've done for the last two or three years, particular on the residential mortgage origination, we have done extraordinarily well, because the market allow us to be able to book a lot of very low loan to value, very nice yield type of residential mortgages. But we got ourselves in the situation now that we actually have a pretty nice balance of residential mortgage. If you look at the residential mortgage balance today, as a percentage, it's at the level that we looked at it, if we continue the same volume of growth, it's not going to be conducive to our principle of having a well-diversified portfolio with a different mix of different type of products.

就我們的預測而言，我們考慮了幾種不同的情況。一是市場狀況。另一份是東西方資產負債表。如果我們回顧過去兩三年所做的工作，尤其是在房屋抵押貸款發放方面，我們做得非常出色，因為市場允許我們獲得許多貸款價值比非常低、收益率非常高的房屋抵押貸款。但現在我們成功地實現了房屋抵押貸款方面相當不錯的平衡。如果以今天的房屋抵押貸款餘額百分比來看，它處於我們之前所關注的水平，如果我們繼續保持同樣的成長速度，這將不利於我們擁有多元化投資組合、包含不同類型產品的原則。

Within the East West situation, we wanted to not have this repeat of 2013 of residential mortgage growth anyway. Then you look at the market condition. I think in general last year, because of the rate environment, many banks who originate home mortgages were all doing very, very well. So we are no exception. We just don't expect that the market will be as strong as it was in 2013. So we expect the market to slow down.

就東西方經濟狀況而言，我們無論如何都不希望2013年住宅抵押貸款成長的情況重演。然後你要觀察市場狀況。我認為去年總體而言，由於利率環境，許多發放房屋抵押貸款的銀行都做得非常好。所以我們也不例外。我們預計市場不會像 2013 年那麼強勁。因此，我們預計市場將會放緩。

We also -- within our own balance sheet diversification and risk oversight purpose, we also do not want to see that much growth. And as a matter of fact, what we've done also is that we have also changed our product mix in the home mortgages area. In 2013, we offer three-year fixed rate, five-year fixed rate. And so this year we decided, in fact, it's not only this year, actually in the middle of fourth quarter, we decided that in order to curtail some of the growth, we'll only offer three years fixed rate. Now, but that's also for interest rate reason, because if you looked at the likelihood of rate going up, maybe by 2015 or something like that, it's now much higher. Because we've been having this almost zero interest rate environment for the last five years.

此外，出於我們自身資產負債表多元化和風險監管的目的，我們也不希望看到如此大的成長。事實上，我們也改變了房屋抵押貸款領域的產品組合。2013年，我們提供三年期固定利率、五年期固定利率。因此，今年我們決定，實際上，不僅是今年，而是在第四季中期，我們決定為了遏制一些成長，我們將只提供三年固定利率。但這也有利率方面的原因，因為如果你看看利率上升的可能性，例如到 2015 年或類似的時候，現在這種可能性會高得多。因為過去五年我們一直處於接近零利率的環境中。

So we think that it's about time that rate will eventually go up. So we decided that rather than three years ago when we offer five years fixed, that was a good move for residential mortgage, because we pick up nice yield, low LTV, and also we don't expect that there's going to be that much of a likelihood of rate going up. But then moving forward in 2014 and 2015 and 2016, for us to offer five years fixed right now, we don't think that it's very smart for interest rate, as liability management, so to speak. So in that regard, so we decided to go only a three-years fixed, and I think that will definitely reduce some of the volume.

所以我們認為利率最終上漲也是遲早的事。因此，我們決定，與其像三年前那樣提供五年固定利率，不如現在推出五年固定利率的房屋抵押貸款，因為這樣可以獲得不錯的收益率、較低的貸款價值比，而且我們也不認為利率上漲的可能性會很大。但展望 2014 年、2015 年和 2016 年，如果我們現在提供五年固定利率，我們認為從利率角度來看，從負債管理的角度來看，這並不是一個明智的做法。因此，在這方面，我們決定只提供三年固定利率，我認為這肯定會減少一些交易量。

So it's a combination of us offering products that may be likely to reduce the volume, and we already have a pretty full plate of residential mortgages and our expectation is the market will be slowing down. So all the combination, we expect that the residential mortgage growth will not be as strong.

因此，一方面我們提供的產品可能會減少交易量，另一方面我們目前已經有很多房屋抵押貸款要處理，我們預計市場將會放緩。綜上所述，我們預期住宅抵押貸款的成長不會像預期那樣強勁。

On the commercial real estate side, what we've seen is that for the last year particularly, a lot of smaller community banks finally came out of MOU and CND. Many of them, their first marching order was to originate commercial real estate loans. In order to be able to do more, and in order to get the yield that they wanted to get the earnings that they need, many of them are doing fixed rate, 5 years, 7 years, 10 years; sometimes even 15 years fixed rate.

在商業房地產方面，我們看到，尤其是在過去一年裡，許多規模較小的社區銀行最終都解除了諒解備忘錄和合約終止協議。他們中的許多人，接到的第一個任務就是發放商業房地產貸款。為了能夠做更多的事情，為了獲得他們想要的收益，為了獲得他們需要的收入，他們中的許多人都在進行固定利率投資，期限為 5 年、7 年、10 年；有時甚至是 15 年。

Again, we at East West Bank, with our loan growth, with our earnings, with our very efficient operation, we don't think that we need to take the next potential ticking time bomb, which is interest rate risk. And so instead of going out there and compete aggressively and also offer these long-term fixed rate loans, which we'll regret four to five years from now, we have been holding off and continue to originate mainly adjustable rate mortgages. An if we do have a fixed rate, we do an interest rate swap with it. So with that, we also don't expect that we will have a very aggressive high growth in the commercial real estate

再說一遍，我們華美銀行憑藉著貸款成長、獲利能力和高效的運營，認為我們不需要承擔下一個潛在的定時炸彈——利率風險。因此，我們沒有積極參與競爭，也沒有提供這些長期固定利率貸款（四五年後我們會後悔的），而是選擇按兵不動，繼續主要發放浮動利率抵押貸款。如果我們確實有一個固定利率，我們會進行利率互換。因此，我們也不預期商業不動產會出現非常迅猛的高速成長。

So the areas that we expect high growth will continue to be on the C&I and also our international cross-border transaction, trade finance and areas like that. That's the area we think that we can take on more. These are long-term profitable, sustainable relationships. And when we book it -- good C&I loan today, three years from now if the business continue to grow, we automatically grow with it. We like that kind of business, and we can afford to take on more, and all of them are adjustable anyway. So we're going to put most of our focus on C&I.

因此，我們預期高成長領域將持續集中在工商貿易、國際跨國交易、貿易融資等領域。我們認為我們可以在這個領域承擔更多責任。這些都是長期獲利、可持續的合作關係。當我們今天獲得一筆良好的工商貸款時，如果三年後業務繼續成長，我們也會隨之自動成長。我們喜歡這種類型的業務，而且我們有能力承接更多業務，反正所有這些業務都是可以調整的。因此，我們將把大部分精力放在工商業領域。

So what we look at is that with payoff and from the loss-share loans and so forth, net-net, even if we have a very high growth in the C&I portfolio, chances are it may come back down to about 10% net, on a net basis, without considering the Metro Bank side. So that's what we come up with our projection.

因此，我們看到的是，考慮到償還款項和損失分擔貸款等因素，淨額來看，即使我們的 C&I 投資組合增長非常快，淨額也可能回落到 10% 左右，這是在不考慮 Metro Bank 方面的情況下得出的結論。這就是我們得出的預測結果。

Thank you very much. And a second question, around -- I appreciate your comments, Dominic, around not really viewing buybacks as the best use of capital. As you look in terms of capital deployment in 2014, you're hinting to Vegas in the fourth quarter. Do you see additional M&A opportunities? And would it be within footprint, or could you go into near markets as well?

非常感謝。第二個問題是關於——多明尼克，我很感謝你的評論，關於不認為回購是資本的最佳用途。從 2014 年的資本部署角度來看，您暗示第四季會去拉斯維加斯。您認為還有其他併購機會嗎？而且是否僅限於現有市場範圍，還是也可以進入鄰近市場？

Well, in terms of the M&A, we have always taken position is that, again, at East West, we have a pretty strong organic growth engine. So we can do without M&A for years and still be able to grow faster than many of our peers. So from an M&A perspective, we have always been under the principle that the deal has to be very attractive from a financial point of view. And also the deal has to be very attractive from a strategic point of view. So we have the capacity. We have the human resources that can take on another acquisition any time, any day. However, we will not do acquisition for acquisition sake. And at this point, I would say that, and just like I said in the last few years, the likelihood of acquisition is relatively low.

至於併購方面，我們一直以來的立場是，East West 擁有非常強勁的內生成長引擎。因此，即使多年不進行併購，我們仍然能夠比許多同行實現更快的成長。因此，從併購的角度來看，我們一直秉持的原則是，交易必須在財務上非常有吸引力。而且從戰略角度來看，這筆交易也必須非常有吸引力。所以我們有能力做到這一點。我們擁有足夠的人力資源，隨時可以進行另一次收購。但是，我們不會為了收購而收購。就目前而言，我認為，就像我過去幾年所說的那樣，收購的可能性相對較低。

But while sometimes while I'm saying there is highly unlikely that we will do an acquisition, suddenly we end up doing one. But this all depends on in a very opportunistic way, we will always be looking out for good deals. And if we find one, we'll jump into it. But if we don't, we are going to continue to focus on what we do best, which is we are one of the best in terms of helping US-China business to do business together. And then in between, we are providing banking services. And so those are the kind of things that we will continue to make sure that we'll improve our platform, capacity, our product mix, and so forth. And then I think that there's still going to be plenty of room for us to grow.

但有時，當我表示我們極不可能進行收購時，突然間我們卻完成了一項收購。但這完全取決於我們能否抓住機會，我們會一直尋找划算的交易。如果我們找到合適的，我們會立即投入其中。但即便我們無法做到這一點，我們也會繼續專注於我們最擅長的領域，那就是我們是最擅長幫助美中企業開展業務的公司之一。然後，我們也會提供銀行服務。因此，我們將繼續努力改進這些方面，包括我們的平台、容量、產品組合等等。而且我認為我們還有很大的發展空間。

Thank you very much for taking my question.

非常感謝您回答我的問題。

Thank you.

謝謝。

Thank you. And our next question comes from Dave Rochester of Deutsche Bank. Please go ahead.

謝謝。下一個問題來自德意志銀行的戴夫·羅徹斯特。請繼續。

Hello, good afternoon. This is actually Timur Braziler filling in for Dave.

您好，下午好。實際上，這是蒂穆爾·布拉澤爾代替戴夫出場。

First question is on NIM guidance for this year. It's a pretty big drop from the fourth Q NIM of 3.41%, I was just wondering if you think the pressure is going to be more front-end loaded, or are you expecting a progression throughout the year?

第一個問題是關於今年的淨利差指導。與第四季 3.41% 的淨利潤率相比，這是一個相當大的降幅。我只是想知道，您認為壓力會更集中在前期，還是您預計壓力會在整個年度逐漸增加？

This is Irene.

這是艾琳。

I think it will be throughout the year. The guidance that we did give out is for the entire year of 2014, not necessarily the first quarter. But when we talk about the drivers for the NIM, I would say it's a couple of things. One, certainly when we look at 2014, we do not expect the same amount of accretion income that we had even in 2013, which was also a lot less than 2012. And in fact, when we look at the fourth quarter, as well, one thing that is positive is if you look at the impact of all of the accounting income related to loss share, SOP accounting, it nets to about zero. That, as you may recall, was about a negative $2 million in the third quarter.

我認為這種情況會持續一整年。我們發布的業績指引是針對 2014 年全年的，不一定是針對第一季的。但當我們談到 NIM 的驅動因素時，我認為主要有兩個面向。首先，當我們展望 2014 年時，我們預計不會像 2013 年那樣獲得同等的增值收入，而 2013 年的增值收入也遠低於 2012 年。事實上，當我們審視第四季度時，也有一件好事，那就是，如果你看一下與虧損分攤、銷售、營運和利潤 (SOP) 會計相關的所有會計收入的影響，淨額約為零。你可能還記得，第三季虧損了約 200 萬美元。

So we're at the point right now when the earnings really are core earnings, although it's still a little bit confusing, and there's a gross-up in the income statement. But next year when we look at the drivers, certainly with our strategy to not take on too much interest rate risk on the loan portfolio and in the investment portfolio, and with the reduction in the accretable income, those are really the drivers.

所以，我們現在所處的階段，收益確實是核心收益，儘管這仍然有點令人困惑，而且損益表中還有總額調整。但明年當我們審視驅動因素時，肯定會考慮到我們的策略，即不在貸款組合和投資組合中承擔過多的利率風險，以及可累積收入的減少，這些才是真正的驅動因素。

Okay. That's helpful. So it's fair to say that year-to-year comparison in fourth quarter of 2014, we could likely see a NIM that's below the 340 -- below the guided range? Is that correct?

好的。那很有幫助。因此可以合理地認為，2014 年第四季的年比淨利差可能會低於 340——低於預期範圍？是這樣嗎？

Yes.

是的。

Okay. Okay, great. And then how are you thinking about your core loan yields, ex the covered portfolio? Should it be pretty stable from here going forward? It seems like they have done pretty well this quarter and still have the resi product coming on around 5%. It should help support it. Is that fair?

好的。好的，太好了。那麼，您如何看待您的核心貸款報酬率（不包括擔保貸款組合）？接下來情況會比較穩定嗎？他們本季似乎表現相當不錯，住宅產品銷售額仍維持在 5% 左右。這應該有助於支持它。這樣公平嗎？

Oh, the yield will continue to drift down a little, but I want to clarify this quarter, we did have a little bit of interest recovery on the non-covered portfolio. That probably added maybe 2 basis points to the margin. So that's something that is a little bit not recurring. Certainly, hopefully -- we hope actually that does recur in the future, but it's not necessarily something that we factor into our modeling. But over the course of 2014, and really until short-term rates go up, you will see that continue drift downward in the yield of the non-covered loans.

哦，收益率還會繼續小幅下降，但我想澄清一下，本季度我們在非擔保投資組合中確實獲得了一些利息回收。那大概會使利潤率增加2個基點。所以這種情況不太常發生。當然，我們希望——實際上我們希望這種情況將來能夠再次發生，但這並非我們建模時必須考慮的因素。但到了 2014 年，尤其是在短期利率上升之前，你會看到無擔保貸款的收益率持續下滑。

Okay, great. And regarding the jump in the securities yields, what are you guys seeing there? Is that an extension of the duration a little bit? And should we expect to see any more upside to the yields in the near term?

好的，太好了。至於證券殖利率的飆升，你們怎麼看？持續時間是不是稍微延長了一點？那麼，我們是否應該預期殖利率在短期內會有進一步上漲的空間？

There has been a slight extension in the duration.

持續時間略有延長。

Okay. Okay, great. And then a modeling question, when looking at the fee income line, excluding the loan sales, which I know can be a little bit lumpy, you had a bump-up in other income and some other line items. Is there any way you can give some color on where you see that trending in 1Q?

好的。好的，太好了。然後是一個建模問題，在查看手續費收入項時，排除貸款銷售（我知道貸款銷售可能會有些波動），其他收入和其他一些項目出現了成長。您能否具體說明一下您認為第一季的發展趨勢？

Yes. I would say I would use a run rate of about $30 million.

是的。我認為我會採用大約 3000 萬美元的運行率。

Okay, $30 million. Okay. And then lastly, now that you've closed the MetroCorp deal, I was just wondering if you could frame what you're thinking about the potential opportunity to grow in Texas on the loan and deposit side? And what portion of your 2014 guidance on the loan side factors in Texas growth?

好的，3000萬美元。好的。最後，既然您已經完成了與 MetroCorp 的交易，我想請您談談您對在德克薩斯州貸款和存款方面潛在增長機會的看法？您在 2014 年貸款方面的指導意見中，有多少部分考慮到了德克薩斯州的成長？

Well, in terms of 2014, we've been basically doing a two-step approach. The first thing first is that we wanted to make sure that we do a good job in system integration. As you know, Metro Bank has two subsidiary bank, one in Texas, the other one in California. So actually, they have two system, two separate system. We need to do two separate system conversion. So in that regard, we are scheduled to have the system conversion completed in May for one and then June for the other one. So we get, we are going to get that out of the way.

就 2014 年而言，我們基本上採取了兩步驟的方法。首先，我們希望確保系統整合工作做好。如您所知，Metro Bank 有兩家子公司，一家在德克薩斯州，另一家在加利福尼亞州。所以實際上，他們有兩個系統，兩個獨立的系統。我們需要進行兩次獨立的系統轉換。因此，在這方面，我們計劃在五月完成一個系統的轉換，然後在六月完成另一個系統的轉換。所以我們得先把這件事解決掉。

In the meantime, East West offered many more different products than what currently Metro Bank offered. So we wanted to spend some time to help train the Metro staff to learn and understand our products and follow through our policy, procedures, things like that. And we are not going to try and rush too much, because, again, I think that we can afford to do the right thing, make sure they set up properly, and then we've got plenty of years. We have the next decade or two to have them to grow the balance sheet and so forth.

同時，東西銀行提供的產品種類比大都會銀行目前提供的產品種類多得多。因此，我們希望花點時間幫助培訓地鐵員工，讓他們了解和理解我們的產品，並遵守我們的政策、程序等等。我們不會操之過急，因為，我認為我們有能力做正確的事情，確保他們妥善安排，然後我們還有很多年的時間。我們還有未來一二十年的時間，讓他們來擴大資產負債表等等。

But the first six months or so, we really wanted to have them to focus on system conversion. There are going to be a few consolidation of the branches that we need to work with their staff, to make sure how we move the branch staff from one location to another, and learning our product. It's going to take some time.

但在最初的六個月左右，我們真的希望他們專注於系統轉​​換。我們將對部分分行進行整合，需要與他們的員工合作，確保分公司員工能夠順利地從一個地點調到另一個地點，並熟悉我們的產品。這需要一些時間。

And then in any type of potential merger, there's always going to be a small degree of deposit and loans run off. So we expect that probably the second half of the year, with new hires, that we are going -- we plan to bring in to help supplement the C&I growth in Texas and also with the existing Metro lenders and business development folks, we are going to start growing in the second half. And some growth there, and then with also some runoff in the beginning of the year because of some consolidation, so forth.

而且在任何類型的潛在合併中，總會有一小部分存款和貸款被註銷。因此我們預計，今年下半年，隨著新員工的加入——我們計劃引進新員工來幫助補充德州的工商業成長——以及現有的都市貸款人和業務發展人員，我們將在下半年開始成長。年初由於一些整合，部分地區出現了一些成長，但也出現了一些下滑等等。

Net-net, it all probably going to wash out to coming out even for the year. And that's what we consistently projected, that with Metro in 2014, we are going to keep it like a zero growth. And then go into 2015, then we have very ambitious plans for the Texas region to do a lot more. And then also to have a business model that resemble the East West business model.

總而言之，這一切最終可能會收支平衡。而這正是我們一直以來的預測，也就是 2014 年，地鐵將維持零成長。進入 2015 年，我們對德克薩斯州地區制定了雄心勃勃的計劃，以取得更大的成就。此外，還要建立一種類似東西方商業模式的商業模式。

Okay, great. Thank you very much for the color.

好的，太好了。非常感謝您提供的顏色。

Thank you. And our next question comes from Mr. Herman Chan of Wells Fargo Securities. Please go ahead.

謝謝。下一個問題來自富國證券的陳赫曼先生。請繼續。

Thank you. Another follow-up on the question on Metro Bank. You mentioned 2015, you have expectations for strong growth there and transforming that franchise to mirror that of East West currently. Should we expect similar growth trajectory for Metro relative to the overall franchise of East West in 2015?

謝謝。關於Metro Bank的問題，還有一點要跟進。您提到了 2015 年，您對該年度的強勁增長抱有期望，並希望將該特許經營權轉型為與目前 East West 類似的模式。我們是否應該預期 Metro 在 2015 年的成長軌跡與 East West 整體特許經營模式類似？

I didn't get your question. Can you repeat the question--

我沒聽懂你的問題。請您重複問題——

The last sentence.

最後一句。

Yes, the last sentence. I missed it.

是的，最後一句話。我錯過了。

Sure. I want to know in 2015 if the Metro operation should be growing as quickly as the overall bank outside of Texas.

當然。我想知道，2015 年 Metro 業務的成長速度是否應該與德州以外的整個銀行的成長速度一樣快。

Oh, absolutely, absolutely. Yes. That's what we expect.

哦，當然，當然。是的。正如我們所預期的。

As a percentage compared to their base.

與基數相比，佔總基數的百分比。

Because Texas is a -- it's a very strong market, and also when it comes to the US-China opportunities, obviously, if you look at the opportunities like California, New York, no doubt it is very, very strong. However, you look at Texas, it may not have as much Chinese business investing in that region. The reality is that there's also not that many banks out there competing against us. So -- in this field.

因為德州是一個非常強大的市場，而且就美中合作機會而言，顯然，如果你看看加州、紐約州等地的機遇，毫無疑問，它們都非常非常強大。然而，看看德州，那裡可能就沒有那麼多中國企業投資。事實上，與我們競爭的銀行並沒有那麼多。所以——在這個領域。

So we think that for us, once we get all the merger conversion and all the administrative things taken care of, our staff in that region can really do some great work, in terms of helping the companies in Texas connecting with a potential equity investor from China or maybe exporting their goods to China and then also vice versa.

所以我們認為，一旦我們完成了所有的合併轉換和所有行政事務，我們在該地區的員工就可以真正做一些很棒的工作，例如幫助德克薩斯州的公司與來自中國的潛在股權投資者建立聯繫，或者將他們的產品出口到中國，反之亦然。

Got it. In terms of the hiring process of adding new commercially focused relationship bankers, when do you expect that process to occur?

知道了。就招募流程而言，增加以商業為重點的客戶經理，您預計流程何時開始？

We, actually, we are going to start now. In fact, we have already hired a person in Dallas, and we will continue to look into -- now, the only thing is that I -- we are not doing it like in a very intense, focused manner, because on one hand, our senior leaders in that region also have to put their priorities into system conversion. But we are letting people know that we are interested to hire people who have C&I experience, people who have solid international background, people who have any particular industry expertise that is attractive to our strategic direction in the future. And we're looking for all kinds of commercial banking talents that we can bring on.

實際上，我們現在就要開始了。事實上，我們已經在達拉斯聘請了一名員工，我們將繼續進行調查——現在唯一的問題是——我們並沒有以非常密集、專注的方式進行這項工作，因為一方面，我們在該地區的領導層也必須將系統轉換作為他們的優先事項。但我們正在向人們表明，我們有興趣聘用具有 C&I 經驗的人員、具有紮實的國際背景的人員，以及擁有任何對我們未來戰略方向有吸引力的特定行業專業知識的人員。我們正在尋找各種商業銀行領域的優秀人才加入我們。

Now, if we get lucky, maybe in the next few months, we end up bringing a great group of people, that's great. But since we are not going through an intense (inaudible), we are putting our primary focus on system conversion. And I would say that at this moment right now, I think that we are just going to continue on a part-time basis on the lookout for the next six months. And then after all the system conversion is done, then we are going to get more intense in terms of finding the right people.

現在，如果我們運氣好，也許在接下來的幾個月裡，我們能招到一批優秀的人才，那就太好了。但由於我們並沒有經歷一場激烈的（聽不清楚）衝突，所以我們將主要精力放在系統轉換上。就目前而言，我認為在接下來的六個月裡，我們將繼續以兼職的方式尋找合適的人選。等到所有系統轉換完成後，我們將更努力地尋找合適的人才。

Understood. And if I can squeeze one more in here, I want to revisit the expectations on residential loan growth in the year. As the QM rules kick in now, does the new regulation have any impact on your expectations for a slowdown in resi mortgages?

明白了。如果我能再擠出一點時間，我想重新審視今年的房屋貸款成長預期。隨著合格抵押貸款（QM）規則的生效，這項新規是否會對您預期住宅抵押貸款成長放緩產生任何影響？

There may be some obviously, we are following all the rules of the new non-QM. But I think that given that we do not want to grow the portfolio a lot more to increase the percentage of concentration of single-family residential loans, that would be like one of the main drivers, where we also don't think that we will grow that portfolio significantly in 2014.

顯然可能會有一些例外，我們正在遵循新非量子力學的所有規則。但我認為，鑑於我們不希望大幅擴大投資組合，從而增加單戶住宅貸款的集中度，這將是主要驅動因素之一，而且我們認為在 2014 年也不會大幅擴大該投資組合。

Understood. Thank you very much.

明白了。非常感謝。

Thank you, Herman.

謝謝你，赫爾曼。

Thank you. And our next question comes from Joe Morford of RBC Capital Markets. Please go ahead.

謝謝。下一個問題來自加拿大皇家銀行資本市場的喬·莫福德。請繼續。

Thank you. Good morning, everyone.

謝謝。各位早安。

Good morning, Joe.

早安，喬。

Just wanted to circle back on the strong commercial loan growth in the quarter, and wondered if you could talk a bit more about the drivers there. How much generally came from, say, the international trade finance side versus some of the niche portfolios that you've been pursuing?

我想再談談本季強勁的商業貸款成長，不知道您能否再詳細談談其驅動因素。例如，國際貿易融資方面的收入佔比是多少？而您一直在追求的一些小眾投資組合的收入佔比又是多少？

Yes, you are right. You covered them all. Mainly, I would say that international trade finance is the primary driver. And then from some of the other niche, industry niches, like, for example, in our entertainment, that we actually also have some nice gain. And then from the technology, life science area, we have a few good loans that we booked. And I would say that pretty much across the board, some manufacturings small-, middle-market business. But clearly, I would say that our primary international trade finance, and then with a good mix, very diverse coverage of these strategic industries that East West made a commitment to invest a few years ago, and we are getting results from all categories.

是的你是對的。你都涵蓋到了。總而言之，我認為國際貿易融資是主要驅動因素。然後，在其他一些細分行業，例如娛樂業，我們也獲得了一些不錯的收益。此外，在科技和生命科學領域，我們也獲得了一些不錯的貸款。而且我認為，這種情況幾乎普遍存在於一些製造業的中小型企業。但很顯然，我認為我們主要的國際貿易融資業務，以及對東西方幾年前承諾投資的這些戰略行業的良好組合和非常多元化的覆蓋，都取得了成效，我們在各個類別中都獲得了成果。

And that actually is the reason why we feel relatively confident that in 2014, we should have the ability to carry the momentum to continue to grow our C&I portfolio. Because few years ago we made a very strong commitment to invest in these various industries, with the expertise that are relevant to our mission of being that bridge between the east and the west and being the bridge for US and China business. And I think that to a certain degree, slowly, gradually it is paying off, and we hope that that momentum will continue and allow us to continue to even not only be able to bring additional new hires.

而這正是我們相對有信心在 2014 年維持成長勢頭，繼續擴大工商業投資組合的原因。因為幾年前，我們做出了非常堅定的承諾，要投資這些不同的產業，利用與我們使命相關的專業知識，成為連結東西方、連結中美商業的橋樑。我認為在某種程度上，這種做法正在緩慢而逐步地取得成效，我們希望這種勢頭能夠繼續下去，並使我們能夠繼續招募更多新員工。

The fact is now we have more and more of our home-grown professionals that we brought in on the entry level, but a few years of more intense, on-the-job training, they also can step up on their own to also help increase the organic growth. With all of that, I think that we are expecting this direction will help us to grow out our loan portfolio for the next 10 years.

事實是，我們現在有越來越多的本土培養的專業人才，他們最初是從入門級職位入職的，但經過幾年更密集的在職培訓，他們也能獨立成長，從而幫助公司實現自然增長。綜上所述，我認為我們預期這一方向將有助於我們在未來 10 年內擴大貸款組合。

Also, the last few years, while traditionally, most of our trade finance customers are importers, we have been very successful in growing our exporters customers, and many of them are very sizable companies. We are very pleased with the progress in increasing our exporters customers in addition to the importers.

此外，雖然傳統上我們的貿易融資客戶大多是進口商，但近年來，我們在發展出口商客戶方面取得了巨大成功，其中許多出口商都是規模非常大的公司。除了進口客戶之外，我們對出口客戶數量的成長也感到非常滿意。

Okay. Thank you for that. Along those lines, too, can you just update us on the China portfolio. What's the current size of that and any growth you may have seen this quarter?

好的。謝謝。另外，能否請您向我們介紹中國投資組合的最新情況？目前該業務規模有多大？本季是否有任何成長？

China portfolio remains small. I think that it's by design. We do not want it to, as we stated before, we do not want to aggressively get into the domestic market. We don't think that -- while China is growing nicely in terms of GDP, despite the fact it's slowing down, it still stayed at 7.7%, and that's substantially higher than most nations around the world. But the reality is that the domestic market can be somewhat volatile.

中國投資組合仍然較小。我認為這是有意為之。我們不希望如此，正如我們之前所說，我們不希望積極進軍國內市場。我們認為並非如此－儘管中國GDP成長放緩，但仍維持7.7%的成長速度，這遠高於世界上大多數國家。但現實情況是，國內市場可能會有些波動。

And also, we are not at our capital -- our capital level is not at the size that we should get into China in a much deeper way from a domestic market point of view. So day one, when we took over the United Commercial Bank through this FDIC acquisition, we have made a decision that our East West Bank's involvement with the US-China business would predominantly in this cross-border lending. And on top of that, we will be advising companies from China in terms of investing in US, we will be helping US companies. And in terms of our open the operations in China and so forth. And we're going to continue to stay in that circle. And there's plenty of opportunity for us.

而且，我們的資本水準還不夠——我們的資本水準還不足以讓我們從國內市場的角度更深入中國市場。因此，從我們透過聯邦存款保險公司收購聯合商業銀行的第一天起，我們就決定，我們東西銀行參與美中業務的主要方式是跨國貸款。除此之外，我們也將為中國公司在美國投資提供諮詢，我們將幫助美國公司。至於我們在中國開展業務等等方面。我們將繼續待在這個圈子裡。我們有很多機會。

Now, because, because of our strategic decision, many of the loans that we booked that involve Chinese company and many of the business that we advised from US, investing in China and so forth, or have relationship in China or have a strong operation in China, are US companies. And we ended up booking most of these loans and deposit in United States. So we see that trend continue. We'll continue to offer value proposition to our clients in US that have substantial business operation in China, but we are not doing banking relationship of taking their deposit or making loans to them in US dollar for in US, with the US collateral and so forth.

現在，由於我們的策略決策，我們記錄的許多涉及中國公司的貸款，以及我們從美國提供諮詢的許多在中國投資、與中國有業務往來或在中國擁有強大業務的公司，都是美國公司。最終，我們把大部分貸款和存款都存到了美國。所以我們看到這種趨勢仍在繼續。我們將繼續為在美國擁有大量中國業務的客戶提供價值主張，但我們不會與他們建立銀行關係，不會接受他們的存款或以美元向他們發放貸款，也不會以美國作為抵押品等等。

We have also many business in China that when they invest in US and we make a loan to them in US, and then they [plash] their deposits in China for us. So through that, we will still be making some loans in China, and most of them probably may be US companies, or may be Chinese company have very strong, secure collateral, such as cash or maybe other forms of security that we feel very comfortable with.

我們在中國也有很多企業，當他們在美國投資，我們向他們提供美國貸款時，他們就把存款轉移到中國給我們。因此，透過這種方式，我們仍然會在中國發放一些貸款，其中大部分可能是美國公司，或者可能是擁有非常強大、安全的抵押品（例如現金或其他我們覺得非常放心的擔保形式）的中國公司。

So by doing that, we really are not taking much of the exposure, from credit point of view in China. And so I expect that in 2014 and beyond, we'll continue to grow the Chinese portfolio slowly. However, it will be very meaningful in terms of it will continue -- any additional growth that we make there, it will end up helping us to grow maybe two or three times more in US, and that's the strategy.

因此，透過這樣做，從信貸角度來看，我們實際上並沒有在中國承擔太多風險。因此，我預計在 2014 年及以後，我們將繼續緩慢擴大中國投資組合。然而，從長遠來看，這將意義重大——我們在那裡取得的任何額外增長，最終都將幫助我們在美國實現兩到三倍的成長，這就是我們的策略。

Similar direction that we are doing in Hong Kong, and so the Hong Kong portfolio also is growing. So if you look at in 2013, both the portfolio in China and the portfolio in Hong Kong have grown, but not growing in the magnitude that will be what I call becomes a material number for the overall financial earnings perspective. However, it's extremely material from a strategic point of view, helping us to gain and win business in US.

我們在香港採取的策略與此類似，因此我們在香港的投資組合也在成長。因此，如果你看一下 2013 年的情況，中國和香港的投資組合都有所增長，但增長幅度並沒有達到我所說的對整體財務收益產生實質影響的程度。然而，從戰略角度來看，這極為重要，有助於我們在美國獲得並贏得業務。

Okay. That's very helpful. Thank you, Dominic.

好的。那很有幫助。謝謝你，多米尼克。

Thank you. Our next question is from Jennifer Demba of SunTrust Robinson Humphrey. Please go ahead.

謝謝。下一個問題來自 SunTrust Robinson Humphrey 的 Jennifer Demba。請繼續。

Good afternoon. A follow-up question on the Las Vegas branch. I think Dominic, you said you already have commercial relationships in that market. Was wondering if you could quantify that and frame what you think the opportunity is there for loan growth over the next few years.

午安.關於拉斯維加斯分行的後續問題。多明尼克，我想你之前說過你已經在那個市場建立了商業關係。我想知道您能否量化一下，並闡述您認為未來幾年貸款成長的機會有多大。

Yes. In fact, throughout the years, I would say that for the last 15 years or so, we have clients, long-term East West Bank clients, who also have expanded the business into the Nevada region. In fact, many of them have commercial real estate investors or commercial real estate developers and so forth. So, in addition of investing in real estates in California, they also looked at state like maybe Arizona and Nevada. In fact, from our perspective, there are more people interested in Nevada instead of Arizona.

是的。事實上，多年來，尤其是在過去 15 年左右的時間裡，我們有一些長期客戶，即東西銀行的客戶，他們也把業務拓展到了內華達州地區。事實上，他們中的許多人都有商業房地產投資者或商業房地產開發商等等。因此，除了在加州投資房地產外，他們還考慮了亞利桑那州和內華達州等其他州。事實上，從我們的角度來看，對內華達州感興趣的人比對亞利桑那州感興趣的人更多。

So as they continue to move beyond the California region, East West Bank followed them, and then we have made loans in Nevada and also in the past with our long-time existing customers. And then some of these customers now also get into commercial business, other, the C&I type of business that really fit into our future growth direction. So by following the existing customers, and through them they also introduce their friends in Las Vegas and so helping us grow. So we actually for many years now, have clients in Las Vegas. We just didn't have a branch there to take on their deposits. So, we've been thinking about opening a branch in Vegas actually for the last two or three years. We just have been so busy doing something else, we haven't really got around to it. And finally, I think that we decided it's about time.

因此，隨著他們不斷向加州以外的地區擴張，東西銀行也隨之而來，我們在內華達州發放了貸款，過去也曾向我們長期的現有客戶提供過貸款。然後，其中一些客戶現在也進入了商業領域，有些則進入了工商業領域，這非常符合我們未來的發展方向。因此，我們透過關注現有客戶，並透過他們介紹自己在拉斯維加斯的朋友，從而幫助我們成長。所以實際上，多年來我們在拉斯維加斯一直都有客戶。我們當時在那裡沒有分公司來接收他們的存款。所以，實際上在過去的兩三年裡，我們一直在考慮在拉斯維加斯開設分店。我們一直忙於其他事情，所以一直沒抽出時間來做這件事。最後，我認為我們已經決定是時候了。

Now, the other thing that I also wanted to mention is that when we did a lot of, let's say commercial real estate loans with these sort of East West clients who happen to have business in Vegas, frankly most of the deposits, they are housed with us in California anyway. So it wasn't that compelling of a reason for us to open a stand-alone branch in the state of Nevada back in, I would say, the old days.

還有一點我想提一下，當我們為那些在拉斯維加斯有業務的東歐和西歐客戶辦理很多商業房地產貸款時，坦白說，大部分存款無論如何都存放在我們加州的銀行裡。所以，在過去，這並不是讓我們在內華達州開設獨立分行的充分理由。

It becomes more compelling today for a few different reasons. One, we are getting bigger now, and we have branches in state of Washington and Massachusetts, New York, Georgia, and Texas. We're much more comfortable to operate out of state. So, it's not as inefficient compared to the old days when we are mainly in California, and say why do we want to go to Nevada and then create more cost and then have to manage by flying out there and things like that? But now it becomes just another natural fit, simply because we are already out of state so much, doing so much business there. We are very comfortable to manage risk that are out of state. That's one.

如今，由於以下幾個原因，它變得更具吸引力。第一，我們現在規模越來越大，在華盛頓州、麻薩諸塞州、紐約州、喬治亞州和德州都設有分公司。我們更喜歡在外州開展業務。所以，與過去我們主要在加州的時候相比，現在的效率並沒有那麼低。那時我們會問，為什麼我們要去內華達州，那樣會增加成本，然後還要透過飛過去的方式來管理等等？但現在這變成了一件順理成章的事，因為我們本來就常去外州，在那裡做了很多生意。我們非常擅長管理州外風險。這是其中之一。

Secondly, there's substantial more interest of business investor from China who are visiting Las Vegas. Back then, everybody had to fly into Los Angeles before they can go and visit the gaming area in Las Vegas. Now there are a lot of people flying direct to Las Vegas. So we have more and more of our Chinese customers who frequently visit Las Vegas anyway. So there's another opportunity we feel that having a branch there will help us to make it much more convenient for our customers also from China. So that's the second reason.

其次，來自中國的商業投資者對拉斯維加斯表現出了更大的興趣。當時，每個人都必須先飛到洛杉磯，然後才能去拉斯維加斯的賭場區玩。現在很多人都選擇直飛拉斯維加斯。所以，我們有越來越多的中國顧客本來就常去拉斯維加斯。因此，我們認為在那裡設立分公司將有助於我們為來自中國的客戶提供更多便利，這也是一個機會。這是第二個原因。

And so third, we really feel that with our ability to grow C&I, that we will have the ability also to make inroads, even in the gaming industry. And we have clients that continue to move from Los Angeles to the state of Nevada, and it's particularly with state tax in California now move up to 13.5%. And there are quite a few of our customers that some are still talking, some already made a move to make their permanent residence in Las Vegas instead of Los Angeles.

第三，我們真心認為，憑藉我們發展 C&I 的能力，我們也有能力在遊戲產業取得進展。我們有不少客戶繼續從洛杉磯搬到內華達州，尤其是在加州州稅上漲到 13.5% 的情況下。我們有不少客戶，有的還在洽談中，有的已經決定將永久居住地從洛杉磯遷至拉斯維加斯。

We've seen more and more of our customers moving that direction because for those who have business that doesn't have to be specifically reside in California, many of them have make the decision that they would be better off to save 13.5% tax to go to the state of Nevada and to establish residency instead of being a California resident. So when we see that trend going on, we need to step in and accommodate that. And that's last, but not least reason that we think that we need to have presence in Nevada.

我們看到越來越多的客戶朝著這個方向發展，因為對於那些業務不必非得在加州開展的人來說，他們中的許多人已經決定，與其成為加州居民，不如去內華達州定居，這樣可以節省 13.5% 的稅款。所以，當我們發現這種趨勢時，我們需要介入並予以適應。這也是我們認為需要在內華達州設立分公司的最後一個原因，但並非最不重要的原因。

Thank you. That's helpful.

謝謝。那很有幫助。

Our next question comes from Lana Chan of BMO Capital Markets. Please go ahead.

下一個問題來自 BMO 資本市場的 Lana Chan。請繼續。

Hello, good afternoon. On the MetroCorp deal, I think you said before the estimate is expected to be $0.02 accretive to earnings this year, which correct me if I'm wrong, I think that's a little bit less than what you originally estimated when you announced a deal. Is that right? And it was changed?

您好，下午好。關於 MetroCorp 的交易，我想你之前說過預計今年將為收益增加 0.02 美元，如果我沒記錯的話，這比你最初宣布交易時的估計要少一些。是這樣嗎？改了嗎？

No, the $0.02 is after that $0.05 one-time charge off. So the growth is $0.07.

不，那 0.02 美元是在扣除 0.05 美元的一次性費用之後的。所以增長額為 0.07 美元。

Okay. And then, if I look at the non-interest expenses, which came in higher than expected this quarter, couple of reasons for that, obviously, but with the guidance for 2014, could you help us frame what the trajectory would be? What's a good base to use for the first quarter, because it seems like there's a couple of puts and takes there on the expense side?

好的。然後，如果我看一下非利息支出，本季該項支出高於預期，這顯然有幾個原因，但根據 2014 年的指導意見，您能否幫助我們確定其發展軌跡？第一季應該採用哪個基準比較好？因為支出方面似乎有些波動。

You're talking about the NII for the Q1?

您說的是第一季的淨利息收入（NII）嗎？

Non-interest expense.

非利息支出。

Oh, the expense. About $100 million?

哦，這筆開銷真不小。大約1億美元？

Around, yes.

是的，差不多。

It would be a little more than that, right, because of the --?

應該不只這些，對吧，因為——？

Specifics of it, if you like, I can go over it with you maybe after the call. But I would say with the different line items where there was an increase from the prior quarter, certainly the amortization of affordable housing tax, that's something that should go back to more normalized run rate. We have some more tax credit investments that we purchased, so maybe a little bit higher than what we had in the third quarter, but certainly nowhere near the $14 million or so in the fourth quarter.

如果你願意，我可以通話結束後跟你詳細討論一下具體細節。但我認為，在與上一季相比有所增長的不同項目中，尤其是經濟適用房稅攤銷，應該會恢復到更正常的運行速度。我們又買了一些稅收抵免投資，所以可能比第三季略高一些，但肯定遠不及第四季的 1,400 萬美元左右。

Additionally, from a comp line item, I think there were really two areas. One, we have hired additional staff, so payroll is higher. And then also, we made a little bit of a refinement to our bonus accrual. So if you look at the increase in comp, it was about 50/50 for those two categories.

此外，從補償項目來看，我認為實際上有兩個面向。第一，我們增聘了員工，所以薪資支出更高了。此外，我們也對獎金累積方式進行了一些調整。所以，如果你看一下薪資成長情況，這兩個類別的成長比例大約是 50/50。

On the legal side, I would say legal expense was elevated during the quarter. There were some settlements and resolution of litigation, additionally also ongoing costs for the litigation as well. If you look at the run rate in the fourth quarter, I would say about $7 million or so relates to litigation that will no longer occur, so that's something that you can use for your modeling.

從法律方面來看，我認為本季的法律費用有所上升。有一些和解協議和訴訟得到解決，此外還有持續的訴訟費用。如果你看一下第四季度的運行率，我認為大約有 700 萬美元左右與將不再發生的訴訟有關，所以你可以把這作為建模的依據。

Okay. Thank you, Irene.

好的。謝謝你，艾琳。

And our next question comes from John Pancari of Evercore. Please go ahead.

下一個問題來自 Evercore 公司的 John Pancari。請繼續。

Good morning.

早安.

Good morning.

早安.

So that -- back to that answer you just gave on the compensation, so the payroll piece, the 50% of it that's attributable to the higher payroll, then that should remain in the run rate, but the incentive comp true-up, the other half of the increase, should come out next quarter, correct?

所以——回到你剛才關於薪酬的回答，工資部分，也就是由於工資上漲而增加的 50%，應該保留在運行率中，但是激勵性薪酬調整，也就是增長的另一半，應該在下個季度推出，對嗎？

That seems reasonable.

這似乎合情合理。

Okay. And then on the outlook for the reserve, can you update us on what your thoughts for a good assumption for the long-term loan-loss reserve level given your growth expectations? I believe you may have implied in the past that 150 basis points would be a good trajectory, but wanted to see if that's still where your thinking is.

好的。那麼，關於儲備金的前景，鑑於您的成長預期，您能否更新一下您對長期貸款損失準備金水準的合理假設的看法？我相信你過去可能暗示過 150 個基點是一個不錯的走勢，但我想看看你是否仍然這麼認為。

I think so. Roughly 1.5%, but it will change based upon the mix of the loans. But I would say for long-term right now, we think 1.5 is a good number.

我也這麼認為。大約為 1.5%，但會根據貸款組合情況而變化。但就目前長遠來看，我們認為 1.5 是一個不錯的數字。

Okay, all right, and then lastly -- actually, back to the expense piece, the increase of the other expenses, was that at all related to the tax credits, or was that all purely in the amortization line?

好的，最後——實際上，回到支出部分，其他支出的增加，這是否與稅收抵免有關，還是完全包含在攤銷項目中？

Could you repeat that one more time? The past credits?

你能再重複一遍嗎？過去的演職員表？

What was the driver of the increase in the other expenses?

其他開支增加的原因是什麼？

Oh, the other expenses increased a little bit in the fourth quarter. We had increased our charitable contribution.

哦，第四季度其他開支略有增加。我們增加了慈善捐款。

Okay. All right. That's also an area that could see a decline going into first quarter?

好的。好的。這也是一個可能在第一季出現下滑的領域嗎？

That could be.

有可能。

Okay. All right. That's it for me. Thank you.

好的。好的。就這些了。謝謝。

And our next question comes from Aaron Deer of Sandler O'Neill & Partners. Please go ahead.

下一個問題來自 Sandler O'Neill & Partners 公司的 Aaron Deer。請繼續。

Aaron?

亞倫？

I'm sorry. I'm on multiple calls here. If you've answered this question already, forgive me. The commercial real estate non-accruals ticked up again this quarter. I was wondering if you could talk about what's behind that trend, if there's a specific borrower or property type?

對不起。我這裡同時在接好幾通電話。如果您已經回答過這個問題，請原諒我。本季商業不動產非應計項目再次小幅上升。我想請您談談這種趨勢背後的原因，是否存在特定的借款人或房產類型？

We have a couple of loans where the loans have gone more than 90 days past due. When we look at them, given our historic low LTB, we don't think necessarily there will be any credit loss content from that, and there were no charge-offs. But certainly from time to time, that does happen.

我們有幾筆貸款已經逾期超過90天了。從我們的角度來看，鑑於我們歷史性的低 LTB，我們認為這不一定會造成任何信用損失，而且也沒有出現任何壞帳。但這種情況確實會不時發生。

It's the borrowers having their own problems, but we feel that the value is there, that it will not result in any charge-off or losses.

借款人本身有問題，但我們認為這筆貸款的價值是存在的，不會導致任何壞帳或損失。

I think that's it. Good luck with the integration.

我想就是這樣了。祝您整合順利。

Thank you, Aaron.

謝謝你，亞倫。

And our next question comes from Matthew Clark of Credit Suisse. Please go ahead.

下一個問題來自瑞士信貸的馬修克拉克。請繼續。

Hello, good morning, guys. Just want to clarify the core-fee question. I think -- I'm not sure if your answer was for other income on an annual basis or if it was for the core fees, ex the change in indemnification asset. I think you had mentioned $30 million. Could you clarify that?

大家好，早安。我想澄清一下核心費用的問題。我想－我不確定你的答案是指其他年度收入，還是指核心費用，例如賠償資產的變動。我想你之前提到過3000萬美元。您能解釋一下嗎？

It's a core fee per quarter is $30 million, when you model.

根據模型計算，每季的核心費用為 3000 萬美元。

Essentially we break out the fee income. So in the fourth quarter, that was $33.4 million. That's what we're comparing that against, the $30 million.

本質上，我們把手續費收入單獨列出來。所以第四季度，這個數字是 3,340 萬美元。我們就是拿它跟 3000 萬美元比較的。

Okay. Does that $30 million incorporate MCBI?

好的。那3000萬美元是否包含了MCBI？

It does not, actually.

實際上並非如此。

Okay. Then on the expenses--

好的。然後是關於費用——

But I would say MCBI, their fee income is pretty low, so I don't think that's going to be a big difference one way or another, quite candidly.

但坦白說，MCBI 的費用收入相當低，所以我認為這不會造成太大的影響。

Yes. And on expenses, the guidance of $430 million to $440 million includes the $7 million of merger charges, but also I would assume it would include Metro, too. Just want to make sure.

是的。至於支出方面，4.3 億美元至 4.4 億美元的預期包括 700 萬美元的合併費用，但我認為也應該包括 Metro 的費用。我只是想確認一下。

Yes.

是的。

Okay. Got it. Thank you.

好的。知道了。謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

At this time, I see no other questions in the queue. Therefore, this concludes our question-and-answer session. I would like to turn the conference back over to Mr. Dominic Ng for any closing remarks. Mr. Ng?

目前，我沒有看到隊列中還有其他問題。至此，我們的問答環節結束。我謹將會議交還給吳先生，請他作總結發言。吳先生？

Well, thank you all for joining us on the call today. I look forward to speaking with you again in April. Bye-bye.

感謝各位今天參加我們的電話會議。我期待四月再次與您交談。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Thank you.

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。謝謝。