East West Bancorp Inc (EWBC) 2021 Q4 法說會逐字稿

Good day, and welcome to the East West Bancorp's Fourth Quarter 2021 Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎參加東西銀行 2021 年第四季度財務業績電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Julianna Balicka, Director of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係總監 Julianna Balicka。請繼續。

Thank you, Sarah. Good morning, and thank you, everyone, for joining us to review the financial results of East West Bancorp for the fourth quarter and full year of 2021. With me on this conference call today are Dominic Ng, our Chairman and Chief Executive Officer; and Irene Oh, our Chief Financial Officer.

謝謝你，莎拉。早上好，謝謝大家與我們一起回顧華美銀行 2021 年第四季度和全年的財務業績。今天與我一起參加電話會議的是我們的董事長兼首席執行官 Dominic Ng；以及我們的首席財務官 Irene Oh。

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. Forward-looking statements may differ materially from the actual results due to a number of risks and uncertainties. For a more detailed description of risk factors that could 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, 2020.

我們想提醒您，在電話會議期間，管理層可能會根據 1995 年《私人證券訴訟改革法案》的安全港條款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由於許多風險和不確定性，前瞻性陳述可能與實際結果存在重大差異。有關可能影響公司經營業績的風險因素的更詳細描述，請參閱我們向美國證券交易委員會提交的文件，包括我們截至 2020 年 12 月 31 日止年度的 10-K 表格年度報告。

In addition, some of the numbers referenced on this call pertain to adjusted numbers. Please refer to the bank's regulatory filings, including our Form 8-K filed today for the reconciliation of GAAP to non-GAAP financial measures.

此外，本次電話會議中引用的一些數字屬於調整後的數字。請參閱該銀行的監管文件，包括我們今天提交的 8-K 表格，用於 GAAP 與非 GAAP 財務指標的調節。

During the course of this call, we will be referencing a slide deck that is available as part of the webcast on the Investor Relations site. As a reminder, today's call is being recorded and will also be available in replay format on our Investor Relations website.

在本次電話會議期間，我們將參考投資者關係網站上網絡廣播的一部分提供的幻燈片。謹此提醒，今天的電話會議正在錄音，並將在我們的投資者關係網站上以重播格式提供。

I will now turn the call over to Dominic.

我現在將把電話轉給多米尼克。

Thank you, Julianna. Good morning. Thank you, everyone, for joining us for our earnings call. I will begin the review of our financial results with Slide 3 of our presentation.

謝謝你，朱莉安娜。早上好。感謝大家參加我們的財報電話會議。我將從演示文稿的幻燈片 3 開始回顧我們的財務業績。

This morning, we reported net income of $218 million and earnings per share of $1.52 for the fourth quarter of 2021. For the full year, East West achieved record earnings of $6.10 per share. Record full year total revenue of $1.8 billion grew by 13% year-over-year, and record net income of $873 million grew by 54%. This was driven by full year total loan growth of 12%, excluding PPP, and full year total deposit growth of 19%. We returned 1.5% on assets and 17.2% on tangible equity for the year.

今天上午，我們公佈了 2021 年第四季度淨利潤 2.18 億美元，每股收益 1.52 美元。 East West 全年每股收益創歷史新高，達到 6.10 美元。全年總收入創紀錄地達到 18 億美元，同比增長 13%，淨利潤創紀錄地達到 8.73 億美元，同比增長 54%。這是由於全年貸款總額（不包括購買力平價）增長 12%，以及全年存款總額增長 19% 推動的。今年我們的資產回報率為 1.5%，有形權益回報率為 17.2%。

Our outstanding financial performance in 2021 reflected robust interest income and fee income growth, industry-leading efficiency and substantially improved asset quality. In the fourth quarter of 2021, nonperforming assets decreased by 40% and criticized loans were down by 18%. For each consecutive quarter of 2021, criticized loans decreased. The fourth quarter annualized net charge-off ratio also decreased to a low 10 basis points. At the same time, we maintained healthy allowances for loan losses. Our reserve coverage of loans was 1.3% as of December 31, 2021.

2021年，我們出色的財務業績體現了利息收入和手續費收入的強勁增長、行業領先的效率以及資產質量的大幅提升。 2021年第四季度，不良資產下降40%，不良貸款下降18%。 2021 年連續每個季度，受到批評的貸款都有所減少。第四季度年化淨沖銷率也下降至10個基點的低位。與此同時，我們保持了健康的貸款損失準備金。截至2021年12月31日，我們的貸款準備金覆蓋率為1.3%。

We are starting the new year from a position of strength. Loan growth prospects for 2022 are excellent. We believe that our broad-based diversified loan growth momentum from 2021 will continue in the new year, and we are encouraged by the favorable credit environment.

我們以強勢的姿態開始新的一年。 2022 年的貸款增長前景非常好。我們相信，2021 年以來我們廣泛的多元化貸款增長勢頭將在新的一年繼續下去，有利的信貸環境令我們感到鼓舞。

Our balance sheet is well positioned to benefit from current market expectations for rising interest rates. Further, the investments that we have made over the last several years in cash management and payment-related products and services have helped to strengthen our core deposit base. As of December 31, 2021, noninterest-bearing demand deposits made up 43% of total deposits, a record for East West.

我們的資產負債表處於有利位置，可以從當前市場對利率上升的預期中受益。此外，我們過去幾年在現金管理以及支付相關產品和服務方面的投資有助於加強我們的核心存款基礎。截至2021年12月31日，無息活期存款佔存款總額的43%，創華美銀行歷史最高紀錄。

We have a long-standing history of industry-leading efficiency. Our adjusted efficiency ratio was a low 37% in 2021. In 2022, we will continue to control expenses while investing in our strategic priorities to expand revenue, enhance the customer experience and strengthen risk management, enduring growth and scalability. Put it all together, these factors will drive robust earnings growth and strong profitability in the coming years and beyond.

我們長期以來一直保持行業領先的效率。 2021年，我們的調整後效率僅為37%。2022年，我們將繼續控制開支，同時投資於我們的戰略重點，以擴大收入、增強客戶體驗、加強風險管理、持久增長和可擴展性。總而言之，這些因素將在未來幾年及以後推動強勁的盈利增長和強勁的盈利能力。

Slide 4 presents a summary of our balance sheet. As of December 31, 2021, total loans reached a record high of $41.7 billion. Excluding Paycheck Protection Program loans, total loans grew $1.5 billion or 15% annualized from September 30, 2021, and by $4.3 billion or 12% year-over-year. Loan growth in 2021 was well balanced across C&I, residential mortgage and commercial real estate. On an average basis, fourth quarter total loans, excluding PPP, grew by 10% annualized from the third quarter.

幻燈片 4 展示了我們的資產負債表摘要。截至2021年12月31日，貸款總額達到417億美元，創歷史新高。不包括薪資保護計劃貸款，自 2021 年 9 月 30 日起，總貸款增長 15 億美元，年化增長率為 15%，同比增長 43 億美元，即 12%。 2021 年，工商業、住宅抵押貸款和商業房地產的貸款增長均衡。平均而言，第四季度貸款總額（不包括 PPP）較第三季度年化增長 10%。

Total deposit of $53.4 billion as of December 31, 2021 were essentially unchanged from September 30, 2021 and up by $8.5 billion or 19% from a year ago driven by strong growth in noninterest-bearing demand deposits. On an average basis, fourth quarter total deposit grew by 6% annualized from the third quarter.

截至 2021 年 12 月 31 日，存款總額為 534 億美元，與 2021 年 9 月 30 日基本持平，較上年同期增加 85 億美元，即 19%，這是由於無息活期存款強勁增長所致。平均而言，第四季度存款總額較第三季度年化增長6%。

Turning to Slide 5. You can see our strong capital ratios largely stable quarter-over-quarter. As of December 31, 2021, we had a common equity Tier 1 ratio of 12.8% and a total capital ratio of 14.1%, which provides us with meaningful capacity for future growth. Our book value per share increased 10.5%, and our tangible equity per share increased 12% year-over-year.

轉向幻燈片 5。您可以看到我們強勁的資本比率環比基本穩定。截至2021年12月31日，我們的普通股一級資本比率為12.8%，總資本比率為14.1%，這為我們的未來增長提供了有意義的能力。我們的每股賬面價值同比增長 10.5%，每股有形權益同比增長 12%。

I'm pleased to announce that East West's Board of Directors approved a 21% increase to the quarterly common stock dividend from $0.33 per share to $0.40 per share, equivalent to an annual dividend of $1.60 per share. The new dividend will take effect beginning in the first quarter and is payable on February 22, 2022 to stockholders of record on February 7, 2022.

我很高興地宣布，East West 董事會批准將季度普通股股息從每股 0.33 美元增加到每股 0.40 美元，增加 21%，相當於每股年度股息 1.60 美元。新股息將於第一季度開始生效，並於2022年2月22日支付給2022年2月7日登記在冊的股東。

Now moving on to a discussion of our loan portfolio, beginning with Slide 6. C&I loans outstanding, excluding PPP, were a record $13.6 billion as of December 31, 2021, an increase of 18% annualized from September 30 and up by 13% year-over-year. Total C&I commitments were $19.8 billion as of December 31, also up 18% annualized sequentially and up 15% year-over-year. Quarter-over-quarter, our total C&I utilization was unchanged at 69%.

現在開始討論我們的貸款組合，從幻燈片 6 開始。截至 2021 年 12 月 31 日，未償工商業貸款（不包括 PPP）達到創紀錄的 136 億美元，較 9 月 30 日年化增長 18%，同比增長 13% -同比。截至 12 月 31 日，C&I 承諾總額為 198 億美元，年化增長率也比上一季度增長 18%，同比增長 15%。與上一季度相比，我們的工商業總利用率保持在 69% 不變。

By industry, we saw strong end-of-period net growth in the fourth quarter from private equity, entertainment and general manufacturing and wholesale. Throughout the year, C&I growth for us has been diversified across our lending teams, geographies and specialized verticals. From 2022, we expect that C&I growth will continue to be well diversified.

按行業劃分，第四季度期末淨增長強勁，來自私募股權、娛樂以及一般製造和批發。全年，我們的 C&I 增長在貸款團隊、地域和專業垂直領域實現多元化。從 2022 年開始，我們預計工商業增長將繼續多元化。

In our outlook, we are assuming that current line utilization levels are unchanged. An improvement in utilization will provide upside to our current expectations. We are optimistic about the strengthening economy and demand in our markets, but cautious about the impact that the ongoing pandemic may have on near-term growth.

在我們的展望中，我們假設當前的線路利用率水平保持不變。利用率的提高將為我們當前的預期提供上行空間。我們對經濟和市場需求的增強持樂觀態度，但對當前疫情可能對短期增長產生的影響持謹慎態度。

Slide 7 and 8 shows the details of our commercial real estate portfolio, which is well diversified by geography and property type and consists of low loan-to-value loans. Total commercial real estate loans were $16.2 billion as of December 31, 2021, up by 16% annualized from September 30 and up by 9% year-over-year. This quarter, we saw the strongest net growth by property type in multifamily mortgages and retail CRE.

幻燈片 7 和 8 顯示了我們商業房地產投資組合的詳細信息，該投資組合在地理位置和房地產類型上非常多樣化，並且由低貸款價值比貸款組成。截至 2021 年 12 月 31 日，商業房地產貸款總額為 162 億美元，較 9 月 30 日年化增長 16%，同比增長 9%。本季度，我們看到多戶抵押貸款和零售商業地產按房地產類型劃分的淨增長最為強勁。

In Slide 9, we provide details regarding our residential mortgage portfolio, which consists of single-family mortgages and home equity lines of credit. Residential mortgage loans were $11.2 billion as of December 31, 2021, growing by 9% annualized from September 30 and up by 15% year-over-year. During the fourth quarter, we originated $1 billion of residential mortgage loans, which was up 4% quarter-over-quarter and down 4% year-over-year. Originations for the full year of 2021 were $4.3 billion, an increase of 29% year-over-year.

在幻燈片 9 中，我們提供了有關住宅抵押貸款組合的詳細信息，其中包括單戶抵押貸款和房屋淨值信貸額度。截至 2021 年 12 月 31 日，住宅抵押貸款為 112 億美元，自 9 月 30 日起年化增長 9%，同比增長 15%。第四季度，我們發放了 10 億美元的住宅抵押貸款，環比增長 4%，同比下降 4%。 2021 年全年的發起額為 43 億美元，同比增長 29%。

I will now turn the call over to Irene for a more detailed discussion of our asset quality and income statement. Irene?

我現在將把電話轉給艾琳，以便更詳細地討論我們的資產質量和損益表。艾琳？

Thank you, Dominic.

謝謝你，多米尼克。

I'll start with our asset quality metrics on Slide 10. I'm very pleased to report that during the course of 2021, all asset quality metrics substantially improved. Total criticized loans decreased sequentially by 18% to $833 million as of December 31, 2021 and decreased by 32% year-over-year. The criticized loan ratio improved by 117 basis points to 2% of total loans as of December 31, 2021, down from 3.2% of loans as of December 31, 2020.

我將從幻燈片 10 上的資產質量指標開始。我很高興地報告，在 2021 年期間，所有資產質量指標均得到了大幅改善。截至 2021 年 12 月 31 日，受到批評的貸款總額環比下降 18%，至 8.33 億美元，同比下降 32%。截至2021年12月31日，受到批評的貸款比率改善了117個基點，佔貸款總額的2%，低於截至2020年12月31日貸款總額的3.2%。

Quarter-over-quarter, nonperforming assets decreased by 40% to $103.5 million as of December 31. The change in nonperforming assets in the fourth quarter reflects payoffs and upgrades of C&I loans and the sale of a commercial real estate owned property. Year-over-year, nonperforming assets were down by 56%. The nonperforming asset ratio improved to 17 basis points of total assets as of December 31, 2021, down from 45 basis points of total assets as of December 31, 2020.

截至 12 月 31 日，不良資產環比下降 40%，至 1.035 億美元。第四季度不良資產的變化反映了工商業貸款的償還和升級以及商業房地產自有財產的出售。不良資產同比下降56%。截至2021年12月31日，不良資產率從總資產的45個基點降至2021年12月31日的17個基點。

Total oil and gas commitments were $912 million and balances outstanding were $601 million as of December 31, 2021. We are comfortable with a portfolio size of under $1 billion in commitments for this sector. Year-over-year, the risk profile of these borrowers has improved substantially.

截至 2021 年 12 月 31 日，石油和天然氣承諾總額為 9.12 億美元，未償餘額為 6.01 億美元。我們對該行業承諾的投資組合規模低於 10 億美元感到滿意。與去年同期相比，這些借款人的風險狀況已大幅改善。

On Slide 11, we present the components of our allowance for loan losses. Our allowance totaled $542 million as of December 31, 2021, or 1.32% of loans, excluding PPP, compared with $560 million or 1.41% as of September 30. The quarter-over-quarter change in the allowance reflects improvements in real estate metrics for our CRE loan pools and a better operating backdrop for the oil and gas exposures. This was partially offset by higher downside scenario weightings due to uncertainty related to the pandemic and the current Omicron variant. We believe that the allowance coverage ratio will continue to moderately decline in the coming years.

在幻燈片 11 中，我們介紹了貸款損失準備金的組成部分。截至 2021 年 12 月 31 日，我們的津貼總額為 5.42 億美元，佔貸款的 1.32%（不包括 PPP），而截至 9 月 30 日為 5.6 億美元，佔貸款的 1.41%。津貼的環比變化反映了房地產指標的改善我們的商業地產貸款池以及更好的石油和天然氣風險運營背景。由於與大流行和當前 Omicron 變體相關的不確定性，下行情景權重較高，部分抵消了這一影響。我們認為未來幾年撥備覆蓋率將繼續小幅下降。

Fourth quarter net charge-offs were $10 million, down from $13.5 million in the third quarter. The fourth quarter net charge-off ratio was 10 basis points of average loans annualized, an improvement from 13 basis points annualized for the third quarter. For the full year of 2021, the net charge-off ratio was 13 basis points compared to 17 basis points for the prior year. Assuming the economy continues to improve, we believe that the net charge-offs for the full year 2022 will modestly improve from full year 2021 levels.

第四季度淨沖銷額為 1000 萬美元，低於第三季度的 1350 萬美元。第四季度淨沖銷率為年化平均貸款的 10 個基點，較第三季度年化 13 個基點有所改善。 2021 年全年，淨沖銷率為 13 個基點，而上一年為 17 個基點。假設經濟持續改善，我們認為 2022 年全年的淨沖銷將較 2021 年全年水平小幅改善。

During the fourth quarter, we recorded a negative $10 million provision for credit losses, same as in the third quarter and in line with our guidance. For the full year of 2021, we recorded a negative $35 million provision for credit losses, largely due to an improved macroeconomic forecast, partially offset by allowances required for the $4.3 billion growth in the loan portfolio.

第四季度，我們錄得負 1000 萬美元的信貸損失準備金，與第三季度相同，符合我們的指引。 2021 年全年，我們的信貸損失撥備為負 3500 萬美元，這主要是由於宏觀經濟預測的改善，部分被貸款組合增長 43 億美元所需的準備金所抵消。

And now moving to a discussion of our income statement on Slide 12. This slide summarizes the key line items of the income statement, which I'll discuss in more detail on the following slides. In noninterest income, included in interest rate contracts and other derivatives are mark-to-market adjustments which were $0.4 million in the fourth quarter compared with $2.5 million in the third quarter. These primarily relate to changes in the CVA. On this slide, the CVA marks are included in the other line of noninterest income.

現在開始討論幻燈片 12 上的損益表。這張幻燈片總結了損益表的關鍵項目，我將在下面的幻燈片中更詳細地討論這些項目。在非利息收入中，利率合約和其他衍生品中包含按市值計價的調整，第四季度為 40 萬美元，而第三季度為 250 萬美元。這些主要與 CVA 的變化有關。在此幻燈片中，CVA 標記包含在非利息收入的另一行中。

Amortization of tax credits and other investments decreased this quarter to $32 million compared with $38 million in the third quarter. Quarter-over-quarter variability and the amortization of tax credits partially reflects the impact of investments that closed in a given period. The effective tax rate for the full year of 2021 was 17%, which was the same rate as in 2020.

本季度稅收抵免和其他投資的攤銷減少至 3200 萬美元，而第三季度為 3800 萬美元。季度間的變化和稅收抵免的攤銷部分反映了特定時期內完成的投資的影響。 2021年全年有效稅率為17%，與2020年稅率相同。

I'll now review the key drivers of our net interest income and net interest margin on slides 13 through 16, starting with the average balance sheet. Fourth quarter average loans of $40.5 billion grew by $572 million or 6% linked quarter annualized and excluding PPP, by $1 billion or 10% annualized. During the quarter, we deployed cash and cash equivalents into higher-yielding loans and securities. Average loans, securities and resale agreements increased by $1.7 billion and interest-bearing cash and deposits with banks yielding 25 basis points decreased by $986 million. Fourth quarter average deposits of $54.3 billion were up by $820 million or 6% linked quarter annualized, led by growth in noninterest-bearing demand deposits, which increased by $850 million or 15% annualized.

現在，我將回顧幻燈片 13 至 16 中淨利息收入和淨息差的主要驅動因素，從平均資產負債表開始。第四季度平均貸款為 405 億美元，同比增長 5.72 億美元，環比增長 6%（不包括 PPP），同比增長 10 億美元，同比增長 10%。在本季度，我們將現金和現金等價物配置為收益較高的貸款和證券。平均貸款、證券和轉售協議增加了 17 億美元，計息現金和銀行存款的收益率為 25 個基點，減少了 9.86 億美元。第四季度平均存款為 543 億美元，同比增長 8.2 億美元，環比增長 6%，其中無息活期存款增長 8.5 億美元，同比增長 15%。

Our average loan-to-deposit ratio was 75% in the fourth quarter, unchanged from the third quarter. We've previously communicated that we're comfortable operating with a loan-to-deposit ratio up to the low 90s percent range. Although core deposit growth is always a focus for East West, a loan-to-deposit ratio with a starting point of 75% today provides us with flexibility to withstand deposit pricing pressure in a rising interest rate environment, shoring up the asset-sensitive nature of our loan portfolio.

第四季度我們的平均存貸比為75%，與第三季度持平。我們之前曾表示，我們可以放心地將貸存比控制在 90% 的低水平範圍內。儘管核心存款增長始終是華美銀行關注的焦點，但目前貸存比起點為75%，為我們在利率上升的環境下提供了抵禦存款定價壓力的靈活性，支撐了資產敏感性。我們的貸款組合。

Turning to Slide 14. Fourth quarter 2021 net interest income of $406 million was the highest quarterly net interest income in the history of East West, growing by 10% linked quarter annualized. Excluding PPP, net interest income grew by 16% annualized in the fourth quarter. Income related to PPP loans was $10 million in the fourth quarter, consisting of $8 million of deferred fees and $2 million of interest income. As of December 31, we had $6 million of PPP deferred loan fees remaining to accrete into income on a $534 million loan book.

轉向幻燈片 14。2021 年第四季度淨利息收入為 4.06 億美元，是 East West 歷史上最高的季度淨利息收入，環比年化增長率為 10%。不計PPP，第四季度淨利息收入年化增長16%。第四季度與 PPP 貸款相關的收入為 1000 萬美元，其中包括 800 萬美元的遞延費用和 200 萬美元的利息收入。截至 12 月 31 日，我們還有 600 萬美元的 PPP 遞延貸款費用可計入 5.34 億美元貸款賬簿的收入。

The GAAP net interest margin expanded to 2.73% in the fourth quarter, an increase of 3 basis points from the prior quarter. Excluding PPP, the fourth quarter adjusted NIM of 2.70% expanded by 6 basis points sequentially. As you can see from the waterfall chart on this slide, the adjusted net interest margin expansion in the fourth quarter reflects the favorable earning asset mix shift combined with the lower cost of interest-bearing deposits.

第四季度 GAAP 淨息差擴大至 2.73%，較上季度增加 3 個基點。剔除購買力平價後，第四季度調整後淨息差為 2.70%，環比擴大 6 個基點。正如您從這張幻燈片的瀑布圖中看到的，第四季度調整後的淨息差擴張反映了有利的盈利資產組合轉變以及較低的計息存款成本。

Turning to Slide 15. The fourth quarter average loan yield was 3.59%. And excluding the impact of PPP, the adjusted loan yield was 3.56%, unchanged from the third quarter. Of our $27.4 billion in variable rate loans as of December 31, $5.6 billion had fully indexed rates below floors, of which $1.9 billion were 25 basis points or less from their floor rate, another $1.9 billion were 25 to 75 basis points from their floor rate.

轉向幻燈片 15。第四季度平均貸款收益率為 3.59%。剔除PPP影響，調整後貸款收益率為3.56%，與三季度持平。截至 12 月 31 日，我們的 274 億美元浮動利率貸款中，有 56 億美元的完全指數化利率低於下限，其中 19 億美元的利率低於下限 25 個基點或更少，另外 19 億美元的利率低於下限 25 至 75 個基點。

Turning to Slide 16. Our average cost of deposits for the fourth quarter dropped to 10 basis points, an improvement of 2 basis points from the third quarter. The spot rate on total deposits cost was 9 basis points as of December 31, also down by 2 basis points from September 30. The cost of deposits declined as we continued to reduce higher rate accounts and grow lower-cost deposits. The average cost of CDs in the fourth quarter was 33 basis points, a decrease of 2 basis points from the third quarter. In the fourth quarter, we originated or renewed $4.9 billion of domestic CDs at a blended rate of 20 basis points and a weighted average duration of 4 months. The repricing of maturing CDs to lower rates have reached an equilibrium.

轉向幻燈片 16。第四季度我們的平均存款成本下降至 10 個基點，比第三季度提高了 2 個基點。截至12月31日，存款總成本即期利率為9個基點，較9月30日下降2個基點。隨著我們繼續減少高利率賬戶和增加低成本存款，存款成本下降。第四季度存款證平均成本為33個基點，較第三季度下降2個基點。第四季度，我們發行或續簽了49億美元的國內存款證，混合利率為20個基點，加權平均期限為4個月。到期存款證重新定價至較低利率已達到平衡。

Moving on to fee income on Slide 17. Total noninterest income in the fourth quarter was $71.5 million compared with $73 million in the third quarter. Customer-driven fee income and net gains on sales of loans were $63 million, essentially stable from the last 3 consecutive quarters and up 19% year-over-year. Quarter-over-quarter growth in lending fees and deposit account fees were partially offset by lower interest rate contract and other derivative income revenue and lower gains on sales of SBA 7(a) loans. Year-over-year, the growth in foreign exchange income, deposit account fees, lending fees and wealth management fees largely reflects new customer acquisitions and increased transaction volumes, particularly for cash management and foreign exchange beyond the rebound from COVID-related troughs of 2020. Beyond quarter-to-quarter volatility, we're positive about the trends in our fee income businesses and momentum for ongoing growth in 2022 and beyond.

接下來是幻燈片 17 上的費用收入。第四季度的非利息總收入為 7150 萬美元，而第三季度為 7300 萬美元。客戶驅動的費用收入和貸款銷售淨收益為 6,300 萬美元，與過去連續 3 個季度基本持平，同比增長 19%。貸款費用和存款賬戶費用的環比增長被利率合同和其他衍生品收入收入下降以及 SBA 7(a) 貸款銷售收益下降部分抵消。與去年同期相比，外匯收入、存款賬戶費用、貸款費用和財富管理費用的增長在很大程度上反映了新客戶的獲取和交易量的增加，特別是現金管理和外彙在從 2020 年新冠疫情相關的低谷反彈之後除了季度與季度之間的波動之外，我們對手續費收入業務的趨勢以及 2022 年及以後的持續增長勢頭持樂觀態度。

Moving on to Slide 18. Fourth quarter noninterest expense was $210 million. Excluding amortization of tax credits and other investments and core deposit intangible amortization, adjusted noninterest expense was $178 million in the fourth quarter, an increase of $11 million or 7% sequentially. This expense growth was driven by higher bonus and incentive compensation expense in the fourth quarter related to full year business activity and higher charitable contributions. For the full year of 2021, the adjusted noninterest expense of $671 million was up 6% year-over-year.

轉到幻燈片 18。第四季度非利息支出為 2.1 億美元。不包括稅收抵免和其他投資的攤銷以及核心存款無形攤銷，第四季度調整後的非利息支出為 1.78 億美元，比上一季度增加 1100 萬美元，即 7%。這一費用增長是由於第四季度與全年業務活動相關的獎金和激勵補償費用增加以及慈善捐款增加所致。 2021 年全年，調整後非利息支出為 6.71 億美元，同比增長 6%。

The fourth quarter adjusted efficiency ratio was 37% compared with 36% in the third quarter and 40% in the year ago quarter. The full year 2021 adjusted efficiency ratio was also 37% and improved by over 200 basis points from 2020.

第四季度調整後效率為37%，而第三季度為36%，去年同期為40%。 2021年全年調整後效率也為37%，比2020年提高了200多個基點。

And with that, I'll now introduce our full year outlook for 2022 on Slide 19. For the full year 2022, we currently expect year-over-year loan growth, excluding PPP, of approximately 12%, similar to growth in 2021 excluding PPP. We expect well-diversified loan growth in 2022 driven by strong production from all of our major loan portfolios and led by commercial and industrial loans. We are assuming that our current C&I utilization rate of 69% stays unchanged in our outlook.

接下來，我將在幻燈片 19 上介紹我們對 2022 年全年的展望。對於 2022 年全年，我們目前預計貸款同比增長（不包括 PPP）約為 12%，與 2021 年的增長類似（不包括 PPP）。購買力平價。我們預計 2022 年貸款將實現多元化增長，這主要得益於我們所有主要貸款組合的強勁產出，並以商業和工業貸款為主導。我們假設目前的工商業利用率為 69%，展望中保持不變。

Year-over-year adjusted net interest income growth, excluding PPP, in the range of 17% to 19%. This reflects loan growth as well as the impact of anticipated Fed funds increases on our asset-sensitive balance sheet. Underpinning our interest income assumptions is a forward interest rate curve as of January 26, 2022, which assumes 4 Fed funds rate hikes in 2022, in March, June, September and December. In our modeling, we are factoring in a 30% beta on our deposits.

調整後淨利息收入同比增長（不包括購買力平價）在 17% 至 19% 之間。這反映了貸款增長以及預期聯邦基金增加對我們資產敏感的資產負債表的影響。我們的利息收入假設的基礎是截至 2022 年 1 月 26 日的遠期利率曲線，該曲線假設 2022 年聯邦基金利率將分別在 3 月、6 月、9 月和 12 月進行 4 次加息。在我們的模型中，我們將存款的 30% 貝塔係數考慮在內。

Adjusted noninterest expense growth, excluding tax credit investment amortization, of 7% to 8% year-over-year. As we benefit from rising rates in our revenue growth, we expect to reinvest a portion of that revenue back into our business, investing in people, technology to support our strategic initiatives. We expect our revenue and expense outlook to result in positive operating leverage year-over-year.

調整後的非利息支出同比增長 7% 至 8%（不包括稅收抵免投資攤銷）。隨著我們受益於收入增長率的上升，我們預計將部分收入重新投資到我們的業務中，投資於人員和技術以支持我們的戰略舉措。我們預計我們的收入和支出前景將帶來同比積極的運營槓桿。

In terms of credit items, for 2022, we currently expect that the provision for credit losses will be below $50 million. We anticipate a modest improvement in the full year net charge-off ratio, which was 13 basis points in 2021. We expect the full year 2022 effective tax rate will be approximately 17% to 18%, in line with the effective tax rate of 17% in 2021. This includes the impact of tax credit investments. There will be quarterly variability in the tax rate due to timing of tax credit investments placed into service.

信貸項目方面，2022年，我們目前預計信貸損失撥備將低於5000萬美元。我們預計全年淨沖銷率將小幅改善，2021 年為 13 個基點。我們預計 2022 年全年有效稅率約為 17% 至 18%，與 17 年的有效稅率一致2021 年的百分比。這包括稅收抵免投資的影響。由於稅收抵免投資投入使用的時間安排，稅率將出現季度變化。

With that, I'll now turn the call back over to Dominic for closing remarks.

現在，我將把電話轉回給多米尼克，讓他作結束語。

Thank you, Irene.

謝謝你，艾琳。

In closing, 2021 was an outstanding year for East West. I wish to thank our team of over 3,000 associates for their unwavering dedication and hard work throughout the year and enabling us to serve our customers with excellence while delivering strong financial performance. I also want to take this opportunity to wish everyone a Happy New Year and a happy early Lunar New Year which is coming on February 1, next Tuesday. I hope the year of the tiger brings health and prosperity to all of us. I will now open up the call to questions. Operator?

最後，2021 年對於 East West 來說是出色的一年。我要感謝我們由 3,000 多名員工組成的團隊，感謝他們全年堅定不移的奉獻精神和辛勤工作，使我們能夠為客戶提供卓越的服務，同時實現強勁的財務業績。我也想藉此機會祝大家新年快樂，並祝2月1日下週二即將到來的農曆新年快樂。希望虎年給大家帶來健康和繁榮。我現在開始提問。操作員？

(Operator Instructions) Our first question comes from Ebrahim Poonawala with Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Ebrahim Poonawala。

Maybe just if you could start with deposits. So period-end balances were relatively flat quarter-over-quarter. If you could give us some perspective around what you're assuming in terms of deposit growth. I know, Irene, you referenced the low loan-to-deposit ratio. I'm just wondering, do you expect a meaningful rise in that ratio through the course of this year? And how we should be thinking about incremental deposit growth, especially in light of all the investments you made on the treasury management side?

也許只是如果你可以從存款開始。因此，期末餘額環比相對持平。您能否就您對存款增長的假設提供一些看法？我知道，艾琳，你提到了低貸存比。我只是想知道，您預計今年這一比率會出現有意義的上升嗎？我們應該如何考慮增量存款增長，特別是考慮到您在資金管理方面所做的所有投資？

Great question. At year-end, with the customer kind of activity, we did see kind of flattish deposit growth. But also as we noted in our call and in the financials, you can see that the average deposit growth was still quite good. And I'll point out that year-to-date thus far, deposits have rebounded. As I mentioned, the customer activity was a driver for the deposit balance right at 12/31.

很好的問題。到年底，隨著客戶活動的增加，我們確實看到了存款的平穩增長。但正如我們在電話會議和財務報告中指出的那樣，您可以看到平均存款增長仍然相當不錯。我要指出的是，今年迄今為止，存款已經反彈。正如我提到的，客戶活動是 12 月 31 日存款餘額的驅動因素。

For 2022, realistically, what's going to be the driver for our earnings, Ebrahim, is going to be the loan growth. And as I mentioned in the prepared remarks, obviously, deposit growth is always a priority for East West, maybe just slightly less of a priority in 2022. With our modeling, we're assuming about a 6% deposit growth in 2022.

易卜拉欣，實際上，到 2022 年，我們收入的驅動力將是貸款增長。正如我在準備好的發言中提到的，顯然，存款增長始終是東西方的優先事項，也許到 2022 年優先級會稍低一些。根據我們的模型，我們假設 2022 年存款增長約為 6%。

Let me just maybe add on also, core deposit growth, specifically noninterest-bearing operating accounts, that's what we've been focusing on for the last several years. Many of our investments that we made throughout the years, incrementally every single year was to the payment system and also digital banking for both commercial and consumer and really looking at the commercial clients that we have and then figure out how we can best serve our commercial clients. This has resulted in tremendous growth in our noninterest-bearing demand deposits. As we indicated in the call, it was 43% as of December 31, 2021.

讓我補充一下，核心存款增長，特別是無息運營賬戶，這是我們過去幾年一直關注的問題。多年來，我們所做的許多投資（每年都在逐步增加）是針對商業和消費者的支付系統以及數字銀行業務，並真正關注我們擁有的商業客戶，然後找出如何最好地為我們的商業服務客戶。這導致我們的無息活期存款大幅增長。正如我們在電話會議中指出的那樣，截至 2021 年 12 月 31 日，這一比例為 43%。

So we will continue to drive those deposit growth. But the situation at East West is that as you have seen that we have much higher deposit growth than loan growth for the last year or 2 and we have a loan-to-deposit ratio at 75%. So obviously, we don't have a need to chase deposits. We just want to keep growing high-quality core deposits. And that's the part that we'll continue focusing on. But in terms of, do we need deposits to support our asset and loan growth? The answer is not. So obviously, because of that reason, we are more comfortable to put more focusing on the lending side.

因此，我們將繼續推動存款增長。但東西方的情況是，正如你所看到的，過去一兩年我們的存款增長遠遠高於貸款增長，而且我們的貸存比為 75%。顯然，我們沒有必要追逐存款。我們只是想繼續增加高質量的核心存款。這就是我們將繼續關注的部分。但就我們而言，我們是否需要存款來支持我們的資產和貸款增長？答案是否定的。顯然，由於這個原因，我們更願意將更多的注意力放在貸款方面。

Understood. And just as a follow-up, you referenced strategic priorities, Dominic, in your remarks earlier. Just wondering if you can elaborate on that, like where you're making investments and how we should think about that manifesting on revenue growth, either on the fee income or the lending side.

明白了。作為後續行動，多米尼克，你在早些時候的講話中提到了戰略重點。只是想知道您是否可以詳細說明這一點，例如您在哪裡進行投資，以及我們應該如何看待收入增長（無論是在費用收入還是貸款方面）的體現。

We are making investments sort of like in the technology. We continue to focusing on also treasury management area in terms of how do we further and better improve our payment-related products, cash management. And in addition to that, as I just mentioned earlier, digital banking, both consumer and commercial. We also are putting more emphasis on wealth management. And this is an area we see that there is going to be great opportunity for us in the next 5 to 10 years, and we are putting more investment to that.

我們正在進行類似於技術方面的投資。我們繼續關注資金管理領域，如何進一步更好地改進我們的支付相關產品、現金管理。除此之外，正如我剛才提到的，消費者和商業數字銀行業務。我們也更加重視財富管理。我們認為這個領域在未來 5 到 10 年內將為我們帶來巨大的機會，我們正在對此進行更多投資。

Now in addition to it, we are adding on new bankers, new bankers both for consumer banking, wealth management and also commercial banking. Those various industry verticals that we started, some of them over 10 years ago, some of them only in the last 2 or 3 years, we can add on additional bankers to grow the business. In addition to that, we are also growing geographically. We did mention, I guess, right in the middle of the pandemic in 2020, we started our office in Chicago. Obviously, for 4 months or so, we couldn't do anything because right in the middle of pandemic. But that little office in Chicago has started making very decent commercial banking business growth in 2021. So we expect that to grow even further.

現在除此之外，我們還增加了新的銀行家，消費銀行業務、財富管理業務和商業銀行業務的新銀行家。我們啟動的各種垂直行業，有些是十多年前，有些是最近兩三年才開始的，我們可以增加更多的銀行家來發展業務。除此之外，我們還在地域上不斷發展。我想，我們確實提到過，就在 2020 年大流行期間，我們在芝加哥設立了辦事處。顯然，在大約 4 個月的時間裡，我們無能為力，因為正值大流行期間。但芝加哥的那個小辦事處已開始在 2021 年實現非常可觀的商業銀行業務增長。因此，我們預計這一業務將進一步增長。

So we will continue to look at some of the other geographic fill-in that we think that will be sort of like areas that makes sense for East West to expand to. So one by one, I think adding people, adding the appropriate type of product capability and further enhancing our technology and overall enterprise risk management, all of those are the areas that we will incrementally improve in 2022 and beyond.

因此，我們將繼續關注其他一些地理區域，我們認為這些區域對於東西方擴張來說是有意義的。因此，我認為一一增加人員、增加適當類型的產品能力以及進一步增強我們的技術和整體企業風險管理，所有這些都是我們將在 2022 年及以後逐步改進的領域。

Our next question comes from Chris McGratty with KBW.

我們的下一個問題來自 KBW 的 Chris McGratty。

Dominic, I want to ask about the outlook for C&I. I think in your prepared remarks you said you're assuming stable utilization in the guide. I guess a two-part question. What do you think it will take to see that move up? And then if it did move up 1 point, is there a rule of thumb for how much incremental growth that would lead to?

Dominic，我想問一下 C&I 的前景。我認為您在準備好的發言中說過您假設指南中的利用率穩定。我想這是一個由兩部分組成的問題。您認為需要什麼才能看到上升？那麼，如果它確實上升了 1 個百分點，是否有經驗法則可以確定會帶來多少增量增長？

Well, if this incrementally improved, I'm pretty sure that, that would obviously increase the loan growth in terms of outstanding balances so.

好吧，如果這種情況逐步改善，我很確定，這將明顯增加未償餘額方面的貸款增長。

Yes, Chris, I can share. Like when we look at that, as we mentioned, the utilization hasn't increased substantially quarter-over-quarter and in fact, very similar to year-over-year numbers as well. When we look at kind of the utilization for the clients prior to the pandemic compared to the current levels with these customers, if we went back to pre-pandemic level, it's about $1.2 billion increase.

是的，克里斯，我可以分享。就像我們看到的那樣，正如我們提到的，利用率並沒有環比大幅增加，事實上，與去年同期的數字也非常相似。當我們將大流行前客戶的利用率與這些客戶當前的水平進行比較時，如果我們回到大流行前的水平，則會增加約 12 億美元。

Okay. That's great. And secondarily, I'm interested in your comments around the fee income opportunities. I think you touched it on wealth management higher. How should we think about just the evolving rate environment and how that might affect your capital markets business, which moves around quarter-to-quarter?

好的。那太棒了。其次，我對您對費用收入機會的評論感興趣。我認為您對財富管理的觸動更高。我們應該如何考慮不斷變化的利率環境以及它可能如何影響您的資本市場業務（該業務每季度都會發生變化）？

Yes. I think on the capital markets, partially, the volume is so low. In the fourth quarter, we did have higher kind of fee income related to our broker-dealer, but that's in that other income line item. So I think that might be what you're referring to, Chris. Overall, for wealth management, if you look at that, I think that was also part of your question. Year-over-year, we've grown that nicely. And we expect in 2022 we'll continue to grow that as well.

是的。我認為在資本市場上，部分交易量非常低。在第四季度，我們確實有與經紀自營商相關的較高費用收入，但那是在其他收入項目中。所以我想這可能就是你指的，克里斯。總的來說，對於財富管理，如果你看一下，我認為這也是你問題的一部分。年復一年，我們成長得很好。我們預計到 2022 年我們也將繼續增長。

Yes. It's an area that I would say that is going to be a multiyear priority that if I look back, like maybe 6, 7 years ago, that I wanted to really put an effort in terms of improving treasury management, like cash management and also foreign exchange. And then as of today, we see the numbers have grown substantially higher than it was 5 years ago and so. And the wealth management area is another one of those high potential area that we think that 3 or 4 years from now that we look back, the number is going to be substantially higher than it is today.

是的。我想說，這將是一個多年的優先事項，如果我回顧過去，比如六七年前，我想真正努力改善財務管理，比如現金管理和外匯管理。交換。截至今天，我們看到這個數字比 5 年前大幅增長，等等。財富管理領域是另一個高潛力領域，我們認為從現在起三四年後回顧，這個數字將大大高於現在。

Our next question comes from Jared Shaw with Wells Fargo Securities.

我們的下一個問題來自富國銀行證券的 Jared Shaw。

I guess circling back on the guidance with the tax rate. What's the assumption for tax credit amortization costs on that offset?

我想回到稅率指導上來。該抵消額的稅收抵免攤銷成本假設是什麼？

Let me get that for you right away. I believe we're assuming about $130 million of tax credit amortization for the full year of 2022.

讓我馬上給你拿來。我相信我們假設 2022 年全年的稅收抵免攤銷約為 1.3 億美元。

Okay. And then looking at credit, obviously, it's had great improvement as we've gone through the year with the allowance ratio now looking like it's a little bit below the Day 1 CECL. What's the impact of the improved energy, the improvement in the smaller energy book on that? And as we look out through the year, what do you think a natural floor is given the economic environment for the allowance to total loans ratio?

好的。然後看看信貸，顯然，隨著我們度過這一年，信貸有了很大的改善，現在的準備金率看起來略低於第一天的 CECL。能源的改進、較小的能源書籍的改進對此有何影響？當我們展望這一年時，您認為在經濟環境下，準備金與總貸款比率的自然下限是多少？

Yes. That's a great question. So as of year-end, the allowance for the energy book was about $50 million, and that certainly is lower year-over-year and definitely lower than where we were Day 1 CECL. Overall, when we look at the trends for the allowance, we do expect it to come down from these levels, the 1.30% that we're on, 1.32% ex PPP.

是的。這是一個很好的問題。因此，截至年底，能源賬簿的津貼約為 5000 萬美元，這肯定比去年同期要低，而且絕對低於我們第一天 CECL 的水平。總的來說，當我們觀察津貼的趨勢時，我們確實預計它會從這些水平下降，即我們目前的 1.30%，按購買力平價計算的 1.32%。

Oil and gas, that portfolio certainly plays a factor on that, especially as the portfolio size decreases. And as you can see from the metrics that we provided, the credit quality and the performance has continued to improve. But I would also say that as the allowance, the absolute dollars and the balances come down, I think that will be less of a factor for the allowance in 2022 and the required ratios, more so the rest of the portfolio, in particular, honestly, probably the CRE portfolio in 2022, and the metrics and the drivers for that will have the largest impact for the allowance.

石油和天然氣，該投資組合肯定會發揮一個因素，特別是當投資組合規模縮小時。從我們提供的指標中可以看出，信用質量和績效持續改善。但我也想說，隨著津貼、絕對美元和余額的下降，我認為這對於 2022 年的津貼和所需比率來說將不再是一個因素，更重要的是投資組合的其餘部分，特別是老實說，可能是 2022 年的 CRE 投資組合，其指標和驅動因素將對補貼產生最大的影響。

Our next question comes from Dave Rochester with Compass Point.

我們的下一個問題來自 Compass Point 的 Dave Rochester。

On the NII guide, just wanted to understand what you're expecting to be the impact of each 25 basis point rate hike that you've got in here. And then what's the level of medium-term interest rates that you're assuming and the securities growth that you're factoring in as well?

在 NII 指南中，我只是想了解您預期每加息 25 個基點會產生什麼影響。那麼您假設的中期利率水平以及您考慮的證券增長水平是多少？

Yes. Great questions. Right now, with our modeling and the guidance, we expect the impact would be about $31 million per hike in 2022. We're not assuming real growth in the securities book. Now some of that, really the driver for that will be the liquidity and looking at what happens with the deposit growth. But we're not assuming any major changes in that. And I think you mentioned the rate, the kind of the rate curve actually has flattened a little bit. And that is also something that we factored in with the guidance and the NII increase related to rates.

是的。很好的問題。目前，根據我們的模型和指導，我們預計 2022 年每次加息的影響約為 3100 萬美元。我們並未假設證券賬簿出現實際增長。現在，其中一些真正的驅動力將是流動性以及存款增長的情況。但我們並不假設這方面會發生任何重大變化。我想你提到了利率，利率曲線實際上已經趨於平坦了一點。這也是我們在指導和與利率相關的國家信息基礎設施增長中考慮的因素。

Go ahead.

前進。

Yes. Just clarify one comment from Irene. The $31 million that she said per hike, that's over a full year basis. So if the hikes are coming in at various points in time, you have to factor the timing also.

是的。只需澄清艾琳的一條評論即可。她所說的每次加息 3100 萬美元，這已經超過了全年的基礎。因此，如果加息是在不同的時間點進行的，您還必須考慮時間因素。

Yes. That makes sense. And then so for medium-term interest rates, it doesn't sound like you're assuming that those move up much from here?

是的。這就說得通了。那麼對於中期利率來說，聽起來您並沒有假設這些利率會從現在開始大幅上升？

Correct. Most of the NII growth that we're factoring in really is from the growth of the loan book. And in fact, really, even without rate increases, we do expect that the increase in NII would be about 15%.

正確的。我們考慮的大部分NII 增長實際上來自貸款賬簿的增長。事實上，即使不加息，我們也確實預計 NII 的增幅將達到 15% 左右。

Perfect. And then as my second question, just on fee income, you guys had solid growth in '21. You've already talked about the enhancements you made to treasury management. You've added folks as well. What are your thoughts on growth for '22 at this point? Do you think that, that the pace we saw in '21 would be appropriate to project in '22?

完美的。作為我的第二個問題，就費用收入而言，你們在 21 年取得了穩健的增長。您已經談到了對財務管理所做的改進。您也添加了人員。您對 22 年的增長有何看法？您認為我們在 21 年看到的速度適合在 22 年預測嗎？

Yes. Total fee income grew over 20% year-over-year. As we're kind of modeling for 2022, I don't know if we're going to expect that level of growth. In particular, I would say that we had some items that may not recur in 2022 that happened in 2021, some of the SBIC investments we had, a lot of kind of equity pickup from there, positive CVA adjustments. So we're not modeling that in, Dave, but we do expect that core customer-related fee income will grow nicely year-over-year, and we're assuming roughly about 15% on that.

是的。總費用收入同比增長超過20%。由於我們正在為 2022 年進行建模，我不知道我們是否會預期這種增長水平。特別是，我想說的是，我們有一些 2021 年發生的項目可能不會在 2022 年重複出現，我們擁有的一些 SBIC 投資，從那裡獲得的大量股權，積極的 CVA 調整。因此，戴夫，我們不會對此進行建模，但我們確實預計與核心客戶相關的費用收入將逐年大幅增長，我們假設大約為 15%。

Our next question comes from Casey Haire with Jefferies.

我們的下一個問題來自 Jefferies 的 Casey Haire。

Just wanted to follow up on the asset sensitivity. I appreciate the $31 million per hike. But just wondering, what are the deposit beta assumptions that are being input for that kind of sensitivity?

只是想跟進資產敏感性。我很感激每次加息 3100 萬美元。但只是想知道，為了這種敏感性而輸入的存款貝塔假設是什麼？

Yes. With the modeling, we're assuming 30% total deposit beta. For interest-bearing, honestly, compared to like the last cycle, we're assuming no change. But of course, with the overall portfolio, the mix that we have, higher level of DDA deposits, much higher level of operating accounts, we do expect a lower overall deposit beta of 30% or so.

是的。通過建模，我們假設總存款貝塔值為 30%。老實說，對於計息而言，與上一個週期相比，我們假設沒有變化。但當然，考慮到整體投資組合、我們擁有的組合、更高水平的 DDA 存款、更高水平的運營賬戶，我們確實預計整體存款貝塔值會較低，為 30% 左右。

Okay. So that 30% is through the cycle, not necessarily for the first couple of hikes?

好的。那麼 30% 是整個週期的一部分，不一定是前幾次加息？

That's right. That's right. And leading question there, but our assumption is the first couple of hikes, the beta is going to be lower.

這是正確的。這是正確的。這是一個主要問題，但我們的假設是前幾次加息，貝塔值會更低。

Got you. Okay. And then just the liquidity deployment, obviously, a nice move in the fourth quarter. On a period-end basis, you're down at $3.9 billion. Is there more room to go? Can you just give us a reminder as to where, what sort of your minimum comfort level is there?

明白你了。好的。然後就是流動性部署，顯然，這是第四季度的一個不錯的舉措。期末虧損為 39 億美元。還有更多空間可以去嗎？您能否提醒我們您的最低舒適度在哪裡？

Yes. I'd say there is a little bit more room to go. Our pace of that really is a function of evaluating what our liquidity needs are, what's happening with the deposits. But overall, there's probably a little bit more room to go on that.

是的。我想說還有更多的空間。我們的步伐實際上取決於評估我們的流動性需求是什麼以及存款的情況。但總體而言，這方面可能還有更多的空間。

Our next question comes from Brandon King with Truist.

我們的下一個問題來自布蘭登·金和 Truist。

Yes. I wanted to first touch on loan growth, specifically in CRE. And I wanted to know what was the assumption for paydowns this upcoming year, if they'll be lower or higher compared to 2021. I know some banks have mentioned how the higher interest rate environment could lead to lower payoffs. I was wondering if that had any impact on your guidance.

是的。我想首先談談貸款增長，特別是商業房地產領域的貸款增長。我想知道明年的還款假設是什麼，與 2021 年相比是否會更低或更高。我知道一些銀行已經提到較高的利率環境可能會導致較低的回報。我想知道這是否對您的指導產生任何影響。

Yes. I think we are hoping so, too. In fact, with the, well, first of all, there were a lot of refi activities for the last year or 2 and so. And I think that a lot of our clients are very, sort of like gone through their refi exercise. And the other thing is with rate picking up a little bit, I expect maybe a little bit less of those type of activities going on. So hopefully, that would help reduce the paydown. And in fact, as part of our assumption for 2022, we do expect slightly less paydown than we experienced in 2021.

是的。我想我們也希望如此。事實上，首先，過去一兩年有很多再融資活動。我認為我們的很多客戶都經歷過他們的改裝練習。另一件事是，隨著利率的上升，我預計此類活動的發生可能會減少一些。希望這將有助於減少還款額。事實上，作為我們對 2022 年假設的一部分，我們預計支付額確實會比 2021 年略有減少。

Okay. And then on the expense guide, I was wondering what the composition of the growth in expenses is expected to be, particularly for compensation. I know, so not the same growth in 2021. Is that expected in 2022 as well based off of the current outlook and potential bonus and incentive payouts?

好的。然後在費用指南上，我想知道預計費用增長的構成是什麼，特別是薪酬方面。我知道，所以 2021 年的增長不會相同。2022 年的預期是否也是基於當前的前景以及潛在的獎金和激勵支出？

Yes. The increase in the expected noninterest expense is largely related to compensation and employee benefits, Brandon. We're a growing organization. We're expecting to grow the loan book. Dominic mentioned kind of new hires and new teams in Chicago. We're adding throughout from the front office perspective and also the back office. So most of the noninterest expense increases, not that dissimilar to the activity that you saw in 2021, honestly. Our compensation will be the largest driver for that. But with that, we expect, hopefully, very soon afterwards revenue growth as well.

是的。布蘭登，預期非利息支出的增加主要與薪酬和員工福利有關。我們是一個不斷成長的組織。我們預計貸款規模會增加。多米尼克提到了芝加哥的新員工和新團隊。我們從前台和後台的角度來增加整個過程。因此，老實說，大部分非利息支出都在增加，與您在 2021 年看到的活動並沒有太大不同。我們的薪酬將是最大的推動力。但與此同時，我們希望收入很快也會增長。

Our next question comes from Brock Vandervliet with UBS.

我們的下一個問題來自瑞銀集團 (UBS) 的布洛克·范德弗利特 (Brock Vandervliet)。

I just wanted to confirm that number. You said NII would be up 15% ex hikes.

我只是想確認一下這個數字。你說NII除稅後將上漲15%。

Yes. That's our expectation. Correct.

是的。這是我們的期望。正確的。

Got it. I'm kind of surprised that 4 hikes don't add more.

知道了。我有點驚訝 4 次徒步旅行並沒有增加更多。

Yes. Part of it is the shape of the curve. Part of it is the timing. I think it's also, as we're evaluating it, we talked about the deposit betas and then also the, now one of the other factors is we're assuming kind of what the shape of the curve also, maybe a little bit compression on the loan side. So we want to be realistic with our guidance with that and the timing of that. And again, this is just 2022, right? We do expect further growth afterwards.

是的。其中一部分是曲線的形狀。部分原因是時機。我認為，當我們評估它時，我們討論了存款貝塔值，然後還有，現在其他因素之一是我們假設曲線的形狀，也許有點壓縮貸款方。因此，我們希望在這方面的指導和時間安排上保持現實。再說一次，這只是 2022 年，對吧？我們確實預計此後會有進一步增長。

And don't forget, the fourth hike in December has very little impact and the third hike is also late in the year. So it sounds, 4 hikes sounds impressive until you work it out over the course of the year.

不要忘記，12 月的第四次加息影響很小，第三次加息也是在今年晚些時候。聽起來，4 次徒步旅行聽起來令人印象深刻，除非你在一年中完成它。

We'd be happy to work through the model with you.

我們很樂意與您一起研究該模型。

Okay. And as a follow-up, just in terms of general commercial calling efforts, the client growth that you're seeing, is it what we would associate with a Chinese ethnic bank or are you of the size now where many of these new relationships have no tie to that whatsoever?

好的。作為後續行動，就一般商業呼叫工作而言，您所看到的客戶增長是我們將其與華裔銀行聯繫起來還是您現在的規模是否達到了許多新關係的規模與此無關？

We are getting both. I mean, that's one of the reasons why you've been seeing this consistent, sustainable, profitable growth at East West Bank. We have the advantage of when we compete like a regional bank with banks within the U.S. footprint, we obviously have many different industry verticals and in some good geographical area and that we cover those C&I business quite well and cover those CRE business quite well.

我們兩者都得到了。我的意思是，這就是華美銀行持續、可持續、盈利增長的原因之一。我們的優勢在於，當我們像區域銀行一樣與美國境內的銀行競爭時，我們顯然擁有許多不同的垂直行業，並且在一些良好的地理區域，我們很好地覆蓋了這些商業和工業業務，也很好地覆蓋了這些商業地產業務。

And then we also have the cross-border banking activities that continue to have sustainable growth. If we look at the last 4 years with this tariff and U.S.-China sort of trade situation that is happening, that didn't stop East West from growing, and we continue to see growth coming from cross-border banking business. And in our consumer banking side, we are the dominant financial institution in the retail space when it covers the Chinese American customers from single-family mortgages, home equity lines and also consumer deposits, et cetera, and then, of course, foreign exchange business. So we are doing well with continuing to expand in both areas. And so far, we have full confidence that 2022 and beyond will see similar trend.

此外，我們的跨境銀行活動也持續可持續增長。如果我們看看過去四年的關稅和中美貿易形勢，就會發現這並沒有阻止東西方的增長，而且我們繼續看到跨境銀行業務的增長。在我們的消費銀行業務方面，我們是零售領域的主導金融機構，它為華裔美國客戶提供單戶抵押貸款、房屋淨值額度以及消費者存款等服務，當然還有外匯業務。因此，我們在這兩個領域的持續擴張方面做得很好。到目前為止，我們完全相信 2022 年及以後將會出現類似的趨勢。

Our next question comes from Gary Tenner with D.A. Davidson.

我們的下一個問題來自 D.A. 的加里·坦納 (Gary Tenner)。戴維森。

Just as you're thinking about loan growth in 2022, and obviously, you gave the guide on that. In 2021, the growth ended up being very well distributed among the 3 main loan segments. So just asking if your expectations include any sort of shift in where more loan growth comes from in 2022 versus 2021?

正如您在考慮 2022 年的貸款增長一樣，顯然您對此給出了指導。 2021 年，增長最終很好地分佈在三個主要貸款領域。那麼，請問您的預期是否包括 2022 年更多貸款增長來源與 2021 年相比是否會發生任何變化？

Yes. In fact, what you notice is that we have, in the past, residential mortgage tend to be the lead and then CRE, C&I. And we started from the third quarter in 2021 and onward, C&I are taking the lead. And naturally, because I would expect in 2022 from what we see in the rate environment and the activities in the past few years, refi market for single-family mortgages probably slow down a little bit. So we wouldn't expect single-family mortgages to have those like, in fact, a few years ago, 20-plus percent kind of growth. So most likely, we're expecting C&I to be the lead, to grow faster than CRE and single family. In fact, as our outlook, we are projecting a little bit higher growth in C&I and then steady 10% growth, both from CRE and single-family mortgages.

是的。事實上，你注意到的是，過去，住宅抵押貸款往往是領先的，然後是商業地產、商業和工業。從 2021 年第三季度開始，C&I 處於領先地位。當然，從利率環境和過去幾年的活動來看，我預計 2022 年單戶抵押貸款的再融資市場可能會放緩一些。因此，我們預計單戶抵押貸款不會像幾年前那樣出現 20% 以上的增長。因此，我們預計工商業將成為領先者，其增長速度將快於商業地產和單戶住宅​​。事實上，根據我們的展望，我們預計 C&I 的增長會稍高一些，然後穩定增長 10%，無論是來自 CRE 還是單戶抵押貸款。

Can you tell us what your mix of refi and purchase was in single-family for 2021?

您能否告訴我們 2021 年單戶住宅的翻新和購買組合是怎樣的？

I don't know if I have that mix for the full year, but our originations definitely pivot towards purchase versus refi.

我不知道全年是否有這種組合，但我們的起源肯定會轉向購買而不是再融資。

Our next question comes from Matthew Clark with Piper Sandler.

我們的下一個問題來自馬修·克拉克和派珀·桑德勒。

Just a follow-up on the loan growth question as it relates to SFR. I recall pricing competition got a little more challenged there, and you guys backed away from the market. The curve is steep in at least the long end, obviously, come up. Are you guys more actively involved in that space? And how much of your outlook is based on slower prepay activity?

只是與 SFR 相關的貸款增長問題的後續行動。我記得那裡的定價競爭受到了更大的挑戰，你們就退出了市場。顯然，曲線至少在長端是陡峭的。你們更積極地參與這個領域嗎？您的前景有多少是基於預付款活動放緩？

Yes. I want to clarify. We did kind of during the course of 2021, at various points, we discontinued the 30-year mortgage, and it wasn't really pricing competition. It was really kind of the pricing caps and we thought that the pricing levels were too low for that. For our guidance and when we look at 2022, we're not really assuming that the payoff and refi activity really play a huge factor. And the refi really is going to decrease a lot from the levels that we've had and been experiencing. So certainly, that can help as well, Matt, if that diminishes.

是的。我想澄清一下。我們在 2021 年期間做了一些事情，在不同的時間點，我們終止了 30 年期抵押貸款，這並不是真正的定價競爭。這確實是定價上限，我們認為定價水平太低了。對於我們的指導以及當我們展望 2022 年時，我們並沒有真正假設回報和再融資活動確實發揮著重要作用。與我們已經經歷過的水平相比，再融資確實會下降很多。當然，如果這種情況減少的話，馬特，這也會有所幫助。

Okay. And then on the...

好的。然後在...

It's still a very robust market. Our product offerings, originations, as you know, really are through the branch network and still pipeline is very strong on the single family. And also the HELOC product, which for us, a lot of our customers, it's very similar depending on their needs, right? Most of our HELOCs are first-lien HELOCs.

這仍然是一個非常強勁的市場。如您所知，我們的產品供應和起源確實是通過分支機構網絡提供的，並且在單一家庭中的渠道仍然非常強大。還有 HELOC 產品，對於我們很多客戶來說，根據他們的需求，它非常相似，對吧？我們的大多數 HELOC 都是第一留置權 HELOC。

Got it. Okay. Great. And then shifting to the trade finance portfolio, can you remind us how large that portfolio is on a dollar basis and the trends you're seeing in that business of late?

知道了。好的。偉大的。然後轉向貿易融資投資組合，您能否提醒我們該投資組合以美元計算有多大以及您最近在該業務中看到的趨勢？

Do we have the trade numbers?

我們有貿易號碼嗎？

I don't know if we have the breakout exactly of that portfolio at year-end. Matt, we will get you that number. If you look at Slide 6, you see the composition of our C&I book. And a lot of the trade really is kind of the general manufacturing and wholesale portfolio. Overall, with our commentary on the utilization, I'd say trade's kind of in that category where we really haven't seen the line utilizations pick up for those customers. But certainly, I think overall it is trending upward.

我不知道該投資組合在年底是否會出現突破。馬特，我們會給你那個號碼。如果您查看幻燈片 6，您會看到我們的 C&I 書的構成。很多貿易實際上是一般製造和批發組合。總的來說，根據我們對利用率的評論，我想說的是，我們確實沒有看到這些客戶的線路利用率有所上升。但當然，我認為總體上呈上升趨勢。

This concludes our question-and-answer session. I would like to turn the conference back over to Dominic for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給多米尼克發表閉幕詞。

Well, I just want to thank everyone for joining our call, and we are looking forward to speaking with you again in April. Bye-bye.

好吧，我只是想感謝大家加入我們的電話會議，我們期待在四月份再次與您交談。再見。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。