East West Bancorp Inc (EWBC) 2023 Q3 法說會逐字稿

Good day, everyone, and welcome to the East West Bancorp's Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加東西銀行 2023 年第三季財報電話會議。 （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 Adrienne Atkinson, Director of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係總監艾德麗安·阿特金森 (Adrienne Atkinson)。請繼續。

Thank you, operator. Good morning, and thank you, everyone, for joining us to review East West Bancorp's Third Quarter 2023 Financial Results. With me are Dominic Ng; Chairman and Chief Executive Officer; Christopher Del Moral-Niles, our new Chief Financial Officer; and Irene Oh, Chief Risk Officer. This call is being recorded and will be available for replay on our Investor Relations website.

謝謝你，接線生。早安，感謝大家與我們一起回顧華美銀行 2023 年第三季財務表現。和我在一起的是 Dominic Ng；董事長兼首席執行官； Christopher Del Moral-Niles，我們新任財務長；和首席風險長 Irene Oh。本次電話會議正在錄音，並將在我們的投資者關係網站上重播。

The slide deck referenced during this call is available on our Investor Relations site. Management may make projections or other forward-looking statements, which may differ materially from actual results due to a number of risks and uncertainties. Management may discuss non-GAAP financial metrics. For a more detailed description of the risk factors and the reconciliation of GAAP to non-GAAP financial measures, please refer to our filings with the Securities and Exchange Commission including the Form 8-K filed today.

本次電話會議中引用的幻燈片可在我們的投資者關係網站上找到。管理階層可能會做出預測或其他前瞻性陳述，由於許多風險和不確定性，這些預測或其他前瞻性陳述可能與實際結果有重大差異。管理階層可能會討論非公認會計準則財務指標。有關風險因素以及 GAAP 與非 GAAP 財務指標的調整的更詳細說明，請參閱我們向美國證券交易委員會提交的文件，包括今天提交的 8-K 表格。

I will now turn the call over to Dominic.

我現在將把電話轉給多米尼克。

Thank you, Adrienne. Good morning, and thank you, everyone, for joining us for our earnings call. Before we start, I would like to welcome Adrienne and Chris. I would also like to congratulate Irene on assuming the role of Chief Risk Officer and thank her for her service as CFO and help in ensuring a smooth transition. Their leadership will be integral in advancing the company's growth strategy and risk capabilities.

謝謝你，艾德麗安。早安，謝謝大家參加我們的財報電話會議。在我們開始之前，我要歡迎艾德莉安和克里斯。我還要祝賀 Irene 擔任首席風險官，並感謝她作為首席財務官所做的工作以及為確保順利過渡所提供的幫助。他們的領導力對於推進公司的成長策略和風險能力至關重要。

I will now begin the review of our financial results on Slide 3 of our presentation. This morning, we reported strong results. Third quarter 2023 net income was $288 million, and diluted earnings per share was $2.02. Driven by a record level of quarterly revenue and net interest income. Our continued customer focus and diversified growth strategy allowed East West to grow loans from the prior quarter and add significant customer deposits. We kept expenses well controlled generated quarterly positive operating leverage and grew tangible book value. We also maintained broadly stable asset quality and continue to proactively manage our [projects].

我現在將開始回顧我們簡報投影片 3 中的財務表現。今天早上，我們報告了強勁的結果。 2023 年第三季淨利為 2.88 億美元，稀釋每股收益為 2.02 美元。受季度收入和淨利息收入創紀錄水準的推動。我們持續以客戶為中心和多元化成長策略使 East West 的貸款比上一季成長，並增加了大量客戶存款。我們很好地控制了開支，產生了季度積極的營運槓桿，並增加了有形帳面價值。我們也維持了整體穩定的資產質量，並繼續積極主動地管理我們的[專案]。

Slide 4 presents a summary of our balance sheet position that is strong, well-diversified and efficient. You can see that we grew the customer deposits by $1 billion from the prior period, with notable growth in both our consumer and commercial balances. These customer deposits largely funded this quarter's loan growth, allowing us to use excess cash to pay down maturing wholesale deposits. We're also pleased with the mix of our loan growth where nearly half the growth came from low-risk residential mortgages.

投影片 4 總結了我們強勁、多元化且高效的資產負債表狀況。您可以看到，我們的客戶存款較上一期增加了 10 億美元，消費者和商業餘額均顯著成長。這些客戶存款主要為本季的貸款成長提供資金，使我們能夠使用多餘的現金來償還到期的批發存款。我們也對貸款成長的組合感到滿意，其中近一半的成長來自低風險住宅抵押貸款。

In the third quarter, we generated industry-leading returns on our capital. We continue to maintain strong capital ratios, which are now the highest for regional banks. East West is on track for another year of record earnings in 2023, and we are looking forward to starting 2024 from a position of strength. Given our earnings stability, solid credit performance and strong capital levels, our Board of Directors has approved the resumption of our share repurchase program in the fourth quarter.

第三季度，我們實現了業界領先的資本回報。我們繼續保持強勁的資本比率，目前是區域銀行中最高的。 East West 預計在 2023 年再創盈利紀錄，我們期待在 2024 年開始保持強勢。鑑於我們的獲利穩定性、穩健的信用表現和強勁的資本水平，我們的董事會已批准在第四季度恢復股票回購計畫。

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

我現在將把電話轉給艾琳，以便更詳細地討論我們的投資組合和資產品質。艾琳？

Thank you, Dominic, and good morning to all on the call. I'll start with a discussion of our loan portfolio.

謝謝你，多米尼克，祝所有來電的人早安。我將首先討論我們的貸款組合。

Slide 5 provides detail on our overall loan book. East West loans are largely balanced by type across residential mortgage, commercial real estate and C&I. Within C&I, our exposures are also well diversified by industry. Our greater China exposures remain limited at roughly 4% of total loans and nearly all our C&I loans, also well diversified by industry.

幻燈片 5 提供了我們整體貸款簿的詳細資訊。東西方貸款基本上按類型平衡，涵蓋住宅抵押貸款、商業房地產和工商業。在工商業領域，我們的業務也按行業實現了多元化。我們在大中華區的風險敞口仍然有限，約佔貸款總額和幾乎所有工商業貸款的 4%，而且按行業也實現了多元化。

Slide 6 shows the details of our commercial real estate portfolio. It is important to note that East West's portfolio remains well diversified by geography and property type. When comparing our portfolio to the FFIEC commercial real estate concentration guidelines, we have consistently been below the guidelines since the end of 2009.

投影片 6 顯示了我們商業房地產投資組合的詳細資訊。值得注意的是，東西方的投資組合在地理和房地產類型方面仍然保持多元化。將我們的投資組合與 FFIEC 商業房地產集中度指南進行比較時，我們自 2009 年底以來一直低於指南。

Slide 7 provides additional detail on commercial real estate. As you see, the portfolio is very granular with an average loan size of $3 million. The weighted average loan-to-value for the portfolio was a low 51%. Fewer than 25% of our commercial real estate loans have a loan-to-value of 60% or over. In the appendix, we have shared similar trends of low average loan sizes and LTVs within our office and retail commercial real estate portfolio. Many of our commercial real estate borrowers have had long-standing relationships with our bank and a large portion of our loans are full recourse with personal guarantees. As a reminder, we typically originate amortizing loans with a maturity of 7 to 10 years. We also have low risk from near-term maturity. As of quarter end, only 8% of the income-producing commercial real estate portfolio matures in the fourth quarter of 2023 and for all of 2024.

幻燈片 7 提供了有關商業房地產的更多詳細資訊。如您所見，該投資組合非常精細，平均貸款規模為 300 萬美元。該投資組合的加權平均貸款成數僅為 51%。在我們的商業房地產貸款中，只有不到 25% 的貸款價值比達到或超過 60%。在附錄中，我們分享了我們的辦公室和零售商業房地產投資組合中平均貸款規模和貸款價值比較低的類似趨勢。我們的許多商業房地產借款人與我們的銀行有著長期的合作關係，我們的大部分貸款都是有個人擔保的全額追索權。提醒一下，我們通常發放期限為 7 至 10 年的攤銷貸款。我們的短期成熟風險也較低。截至本季末，創收商業房地產投資組合中只有 8% 在 2023 年第四季和 2024 年全年到期。

On Slide 8, we provide detail on our residential mortgage portfolio, which is made up largely of single-family mortgages and also home equity lines of credit. Like commercial real estate, our residential mortgage portfolio is well diversified by geography and property. The average loan-to-value for our residential mortgage portfolio is also quite low at 51% and with close to 90% of our portfolio before a 60% -- below a 60% LTV. As you can see on the slide in our distribution behind geography, our residential mortgage loans are overwhelmingly in footprint with the primary source of origination coming through our branch network. Residential mortgage has proven to be a resilient source of loan growth for us growing 3% from the second quarter. I would also like to highlight that over 80% of our HELOC commitments, we are in first lien position.

在幻燈片 8 中，我們提供了住宅抵押貸款組合的詳細信息，該投資組合主要由單戶抵押貸款和房屋淨值信貸額度組成。與商業房地產一樣，我們的住宅抵押貸款投資組合在地理位置和財產方面也十分多樣化。我們的住宅抵押貸款投資組合的平均貸款價值比也相當低，為 51%，並且我們的投資組合中接近 90% 的貸款價值比低於 60%，低於 60% 的貸款價值比。正如您在我們的地理分佈幻燈片中看到的那樣，我們的住宅抵押貸款的足跡絕大多數是透過我們的分行網路產生的。事實證明，住宅抵押貸款是我們貸款成長的一個有彈性的來源，較第二季度增加了 3%。我還想強調，超過 80% 的 HELOC 承諾，我們處於第一留置權位置。

Turning to Slide 9. The asset quality of our portfolio remains broadly stable. During the third quarter, we reported net charge-offs of $18 million or 14 basis points an increase from net charge-offs of 6 basis points in the second quarter. Quarter-over-quarter, nonperforming assets as of September 30, decreased modestly to $104 million or 15 basis points of total assets from 17 basis points as of June 30. The criticized loan ratio increased 38 basis points from June 30 to 2.01% of loans held for investment. The special mention loan ratio increased 29 basis points, excuse me quarter-over-quarter to 95% of loans held for investment as of September 30, and the classified loans ratio increased 9 basis points to 106% as credit continues to normalize. The increases were driven primarily by C&I as some borrowers are being impacted by higher rates and inflation.

轉向投影片 9。我們投資組合的資產品質基本上保持穩定。第三季度，我們報告淨沖銷額​​為 1,800 萬美元，即 14 個基點，比第二季度的淨沖銷額增加了 6 個基點。截至9 月30 日，不良資產環比小幅下降至1.04 億美元，佔總資產的比例從6 月30 日的17 個基點小幅下降至15 個基點。受批評的貸款比率較6 月30 日上升38 個基點，佔貸款的2.01%為投資而持有。截至 9 月 30 日，關注類貸款比率環比上升 29 個基點，佔投資貸款的 95%；隨著信貸繼續正常化，分類貸款比率上升 9 個基點，至 106%。成長主要由商業和工業推動，因為一些借款人受到利率上升和通貨膨脹的影響。

There were no industry or sector trends for this increase in criticized C&I loans and also no geographic trends to highlight and the slight uptick in commercial real estate criticized loans. We remain vigilant and proactive in monitoring and managing our credit risk. We reported a provision for credit losses of $42 million in the third quarter compared with $26 million for the second quarter building the allowance for loan losses ratio 1 basis point to 1.29%.

受批評的工商業貸款的增加沒有行業或部門的趨勢，也沒有值得強調的地理趨勢，商業房地產受批評的貸款略有上升。我們在監控和管理信用風險方面保持警惕和積極主動。我們報告第三季的信貸損失準備金為 4,200 萬美元，而第二季為 2,600 萬美元，貸款損失準備金率上升 1 個基點至 1.29%。

Turning to Slide 10. As shown on this slide, all of our capital ratios expanded quarter-over-quarter due to the strength of our earnings. If adjustments were made for AFS and HTM security marks and the allowance for loan losses that is not already reflected in equity, our capital ratios would still be very strong. Tangible common equity grew to 9.03% as of September 30. Quarter-over-quarter, our tangible book value per share increased 2%. Year-over-year, tangible book value per share increased 18%. East West Board of Directors has declared fourth quarter 2023 dividends for the company's common stock. The quarterly common stock dividend of $0.48 per share will be payable on November 15, 2023, to stockholders of record on November 1, 2003.

轉向投影片 10。如這張投影片所示，由於我們的獲利強勁，我們所有的資本比率都逐季擴大。如果對 AFS 和 HTM 擔保標記以及尚未反映在股本中的貸款損失準備金進行調整，我們的資本比率仍然會非常高。截至 9 月 30 日，有形普通股權益成長至 9.03%。與上一季相比，我們每股有形帳面價值成長了 2%。每股有形帳面價值年增 18%。 East West 董事會已宣布派發公司普通股 2023 年第四季股利。每股 0.48 美元的季度普通股股息將於 2023 年 11 月 15 日支付給 2003 年 11 月 1 日登記在冊的股東。

We currently have $254 million of repurchase authorization that remains available for future buybacks. Although we did not repurchase any shares during the third quarter of 2023, as announced in our earnings release, we intend to resume repurchases in the fourth quarter.

我們目前擁有 2.54 億美元的回購授權，可供未來回購。儘管我們在 2023 年第三季沒有回購任何股票，但正如我們在財報中所宣布的那樣，我們打算在第四季度恢復回購。

I'll now turn the call over to Chris for a more detailed discussion of the drivers of our income statement and outlook. Chris?

現在我將把電話轉給克里斯，以便更詳細地討論我們損益表和前景的驅動因素。克里斯？

Thank you, Irene, and good morning to all. I will start with a discussion of our deposit strength and then review the key drivers of net interest income and net interest margin.

謝謝你，艾琳，祝大家早安。我將首先討論我們的存款實力，然後回顧淨利息收入和淨利差的主要驅動因素。

Slide 11 highlights our deposit mix by segments, customer type and source. In the third quarter, we grew both commercial and consumer deposit balances, increased the number of customer accounts and reduce higher cost wholesale deposits. Year-over-year, we have successfully grown deposits across our client sectors. Our commercial deposits remain well diversified by industry and our consumer deposits are fairly granular.

投影片 11 按細分市場、客戶類型和來源重點介紹了我們的存款組合。第三季度，我們增加了商業和消費者存款餘額，增加了客戶帳戶數量，並減少了成本較高的批發存款。與去年同期相比，我們在各個客戶領域的存款都取得了成功的成長。我們的商業存款按行業保持多元化，而我們的消費者存款則相當細化。

Turning to the balance sheet on Slide 12. Third quarter average loans grew 2% sequentially, driven by growth in all major categories. Third quarter average deposits of $55.2 billion increased $900 million or 2% from the second quarter. During the third quarter, growth in average money market and time deposits was offset by declines in other deposit categories, largely reflecting customers optimizing their yield in a higher interest rate environment. Our average loan-to-deposit ratio was 90% during the third quarter and average noninterest-bearing demand deposits made up 30% of average deposits for the period.

轉向投影片 12 上的資產負債表。在所有主要類別成長的推動下，第三季平均貸款較上季成長 2%。第三季平均存款為 552 億美元，較第二季增加 9 億美元，成長 2%。第三季度，貨幣市場和定期存款的平均成長被其他存款類別的下降所抵消，這主要反映了客戶在高利率環境下優化了收益率。第三季度，我們的平均貸存比為90%，平均無息活期存款佔期間平均存款的30%。

Turning to the NIM on Slide 13. Third quarter 2023 net interest income was $571 million, sorry, a new third quarter record for East West. Net interest margin was 3.48%, which compressed by 7 basis points quarter-over-quarter. As you can see from the waterfall chart on this slide, NIM compression was largely due to the impact of higher interest-bearing deposit costs and the deposit mix shift to higher-cost customer deposit categories, partially offset by the lower wholesale deposits and higher loan bodies.

轉向幻燈片 13 上的 NIM。2023 年第三季淨利息收入為 5.71 億美元，抱歉，這是 East West 第三季的新紀錄。淨利差為3.48%，季後壓縮7個基點。從這張投影片的瀑布圖中可以看出，淨利差壓縮主要是由於計息存款成本上升以及存款組合轉向成本較高的客戶存款類別的影響，部分被批發存款減少和貸款增加所抵消身體。

Turning to Slide 14. The third quarter average loan yield increased by 18 basis points quarter-over-quarter, and the spot coupon rate on our loans was 6.62% at quarter end compared with 6.45% at June 30. In total, nearly 60% of our loan portfolio was variable rate at September 30 with a fairly balanced split between prime rate and SOFR-linked loans. Over the last several years, while rates were low, we continue to help many of our CRE and also some C&I customers hedge against rising rate risk through the use of swaps, caps and collars. As a result, on the customer side, nearly 2/3 of the total CRE book was fixed rate to them at September 30. These clients are partially protected against the rising debt service costs and the payment shocks from the higher rate environment over the near term.

轉向投影片 14。第三季平均貸款收益率較上季上升 18 個基點，季末貸款即期票面利率為 6.62%，而 6 月 30 日為 6.45%。總計接近 60%截至9 月30 日，我們的貸款組合的利率為浮動利率，優惠利率貸款和SOFR 相關貸款之間的比例相當平衡。過去幾年，雖然利率較低，但我們繼續幫助我們的許多 CRE 以及一些 C&I 客戶透過使用掉期、上限和上限來對沖不斷上升的利率風險。因此，在客戶方面，截至 9 月 30 日，CRE 帳簿總額的近 2/3 為固定利率。這些客戶受到部分保護，免受近期高利率環境帶來的償債成本上升和支付衝擊。學期。

Turning to Slide 15. Our average cost of deposits for the third quarter was 243 basis points, up 31 basis points from the second quarter. Our spot rate on total deposits was 248 basis points as of September 30, reflecting a 46% cumulative beta relative to the change in Fed Funds since December 21. In comparison, the cumulative beta on our loans has been 61% over the same period. We were pleased with our ability to manage deposit costs during the quarter. We paid down $1.6 billion of higher cost wholesale deposits and replaced much of that with lower cost customer funds.

轉向投影片 15。第三季的平均存款成本為 243 個基點，比第二季上升 31 個基點。截至9 月30 日，我們的總存款即期利率為248 個基點，相對於12 月21 日以來聯邦基金的變化，累計貝塔值為46%。相比之下，同期貸款的累計貝塔值為61 %。我們對本季管理存款成本的能力感到滿意。我們償還了 16 億美元的成本較高的批發存款，並用成本較低的客戶資金取代了其中的大部分。

Moving on to noninterest income on Slide 16. Total noninterest income in the quarter was $77 million. For the third quarter, interest rate contracts and other derivatives income of $11 million increased $4 million from the second quarter, primarily reflecting changes in market valuations. Other investment income of $2 million was down a bit quarter-over-quarter, reflecting higher valuation marks on CRA investments recognized during the second quarter. Our fee income for the period was $67 million.

接下來是幻燈片 16 上的非利息收入。該季度的非利息總收入為 7,700 萬美元。第三季度，利率合約和其他衍生性商品收入為1,100萬美元，較第二季增加400萬美元，主要反映了市場估值的變化。其他投資收入為 200 萬美元，環比略有下降，反映出第二季確認的 CRA 投資估值較高。我們這段期間的費用收入為 6700 萬美元。

Moving on to Slide 17. Third quarter noninterest expense was $252 million, a 4% decrease quarter-over-quarter. Excluding amortization of tax credit and [CDI] adjusted noninterest expense was $202 million in the third quarter, down over $3 million or down 2% sequentially. This was driven by decreases in several categories, including lower consulting costs lower loan-related expense, lower comp and benefits expense and lower occupancy expense. The third quarter adjusted efficiency ratio was 31.2% compared with 31.8% in the prior quarter. We are pleased with our ability to consistently deliver industry-leading efficiency. And with that, I'll now review our updated outlook for the full year on Slide 18.

轉到投影片 17。第三季非利息支出為 2.52 億美元，季減 4%。不包括稅收抵免攤銷和 [CDI] 調整後的非利息支出，第三季為 2.02 億美元，比上一季下降超過 300 萬美元，即下降 2%。這是由幾個類別的下降推動的，包括諮詢成本降低、貸款相關費用降低、薪資和福利費用降低以及佔用費用降低。第三季調整後效率為31.2%，上一季為31.8%。我們對能夠始終如一地提供業界領先的效率感到滿意。接下來，我將在投影片 18 上回顧我們最新的全年展望。

For the full year, we are reaffirming our prior guidance for the end of period loans, net interest income, adjusted noninterest expense and credit items. Regarding tax items, we now expect our effective tax rate for the full year will be between 19% to 20% based on about $185 million of tax credit investments. We currently anticipate that for the fourth quarter, the amortization of tax credit investments will be approximately $45 million.

對於全年，我們重申了先前對期末貸款、淨利息收入、調整後非利息支出和信貸項目的指導。關於稅收項目，我們現在預計，基於約 1.85 億美元的稅收抵免投資，全年的有效稅率將在 19% 至 20% 之間。我們目前預計第四季度稅收抵免投資的攤銷約為 4,500 萬美元。

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

現在，我將把電話轉回給多明尼克，讓他作總結發言。

Thank you, Chris. In closing, we are looking forward to finishing 2023 on a high note. Our revenue net interest income and profitability measures remain high. The East West business model is resilient and diversified and our balance sheet has positioned us well to continue to focus on our customers. I want to thank our associates for all their hard work last quarter, which was reflected in our strong performance. I will now open the call to questions. Operator?

謝謝你，克里斯。最後，我們期待 2023 年圓滿結束。我們的收入淨利息收入和獲利能力指標仍然很高。東西方業務模式具有彈性和多元化，我們的資產負債表使我們能夠繼續專注於客戶。我要感謝我們的員工上季度的辛勤工作，這反映在我們的強勁業績中。我現在開始提問。操作員？

(Operator Instructions) Our first question comes from Casey Haire with Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Casey Haire。

Yes. Thanks. Everyone, and welcome back, Chris. First question for you, Chris. Just on the NII. The curious about the cash position and working down those wholesale deposits going forward? Can -- how much more can you lean into the cash position to retire the rest of those wholesale deposits?

是的。謝謝。大家好，歡迎回來，克里斯。第一個問題給你，克里斯。就在NII上。對現金狀況和未來批發存款的減少感到好奇嗎？您還可以利用多少現金部位來提取剩餘的批發存款？

Sure. As Irene mentioned on the last call, it was our intention to pay down up to $1.75 billion by year-end and we've obviously talked a lot of that [wood] here in the third quarter with $1.6 billion paid off. So there's a little bit that we had planned that's maturing, that we're going to take care of as we go forward and they will continue to evaluate the optimal level of cash as we move into next year's planning.

當然。正如艾琳（Irene）在上次電話會議中提到的那樣，我們打算在年底前支付高達17.5 億美元的款項，顯然我們在第三季度在這裡談論了很多[木材]，並已支付了16億美元。因此，我們計劃的一些內容正在成熟，我們將在前進的過程中予以處理，並且在我們進入明年的計劃時，他們將繼續評估最佳現金水平。

Got it. Okay. And just as my follow-up on the buyback resumption, just curious how aggressive you might be with that? I know you have the $250 million authorization, but are you looking to manage to a specific CET1 ratio or payout ratio? Just trying to get a sense of how aggressive you might be on the buyback with the stock at obviously attractive evaluation?

知道了。好的。正如我對回購恢復的後續行動一樣，只是好奇您對此有何積極性？我知道您擁有 2.5 億美元的授權，但您是否希望達到特定的 CET1 比率或支付比率？只是想了解一下，在該股票的估值明顯有吸引力的情況下，您的回購力道有多大？

I don't know. I would use the word aggressive. I think we're always opportunistic. We have $254 million left to go, that's already been authorized. And so I think, obviously, price pretty good -- and so we will proceed. And so I will leave it at that.

我不知道。我會用「侵略性」這個詞。我認為我們總是機會主義的。我們還剩下 2.54 億美元，這已經被授權了。所以我認為，顯然，價格相當不錯——所以我們將繼續進行。所以我就這樣吧。

Our next question comes from Brandon King with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Brandon King。

So I wanted to give more context in regards to net interest margin trends, potentially being in the higher for longer rate environment. When do you think we could see some stabilization or potential bottoming?

因此，我想提供更多有關淨息差趨勢的背景信息，可能是在長期利率較高的環境中。您認為我們什麼時候可以看到一些穩定或潛在的觸底？

Well, I think we expect generally continued modest compression given the current rate outlook and given our expectations that there's potentially another fed action towards year-end. In the medium term, of course, we're managing more towards dollar NII, and in the long term, obviously, our largest risk is actually to rapidly declining rates. So we're taking proactive measures to make sure we're positioned for the long term.

嗯，我認為，鑑於當前的利率前景以及我們對聯準會可能在年底前採取另一項行動的預期，我們預計總體上將繼續適度壓縮。當然，從中期來看，我們會更多地管理美元NII，而從長期來看，顯然，我們最大的風險實際上是利率迅速下降。因此，我們正在採取積極主動的措施，以確保我們的長期定位。

Okay. And doing that next year is going to be more challenging from a revenue standpoint. What are you thinking about in terms of managing or maintaining positive operating leverage with regard to expense base?

好的。從收入的角度來看，明年這樣做將更具挑戰性。在管理或維持費用基礎方面的積極營運槓桿方面，您有何想法？

I think it's a little early for us to give you 2024 guidance. We typically do that in January call, and we'll be happy to follow up then.

我認為現在給您 2024 年指導還為時過早。我們通常會在一月份的電話會議中進行此操作，屆時我們將很樂意跟進。

Our next question comes from Broderick Preston with UBS.

我們的下一個問題來自瑞銀集團的布羅德里克·普雷斯頓。

I wanted to ask maybe a more pointed question on the buyback, Dominic. So you got $254 million of authorization. Capital is obviously robust. The stock is cheap and well below where you bought it back in the past. And you had $220 million left over after paying the dividend out of net income in 3Q alone. So would you consider using the full amount in the fourth quarter?

我想問一個關於回購的更尖銳的問題，多明尼克。所以你獲得了 2.54 億美元的授權。資本實力顯然強勁。該股票很便宜，遠低於你過去買回它的價格。僅在第三季從淨利潤中支付股息後，就剩下 2.2 億美元。那麼您會考慮在第四季全額使用嗎？

Well, as I said earlier, we are opportunistic. And so we don't really have any specific sort of like direction that we have to be doing it in 1 quarter or not. And we'll see how -- what the price is and how things go. And one thing you can be rest assured, East West Banks always shareholders friendly. And we always do the right thing at the right time. And whatever that makes sense that we'll go according to what we think is the best.

嗯，正如我之前所說，我們是機會主義的。因此，我們實際上沒有任何特定的類似方向，我們必須在一個季度內完成或不完成。我們將看看價格是多少以及事情進展如何。您可以放心的一件事是，華美銀行始終對股東友好。我們總是在正確的時間做正確的事。無論什麼有意義，我們都會按照我們認為最好的方式去做。

Got it. Okay. And then I do have a follow-up, which is a multi-part kind of question. I wanted to ask how much of the bank's loan portfolio [SNCs]. And of that, what amount is the bank, the lead underwriter on? And then also, I don't know if Chris or Irene would have this, do you happen to have what the reserve on the office portfolio is?

知道了。好的。然後我確實有一個後續問題，這是一個由多部分組成的問題。我想問銀行的貸款組合 [SNC] 有多少。其中，主承銷商銀行的金額是多少？另外，我不知道克里斯或艾琳是否會有這個，你碰巧有辦公室投資組合上的儲備金嗎？

Yes, Brody. So as of 9/30, we held $2.4 billion of [SNC] that we have purchased from others. Out of 9/30, we're also the lead on $900 million of syndications, $300 million of which we've participated out to others. And I think your next question, although you squeeze them 3 questions for a day, I want to comment on that on offsets. So we increased the reserve for office. Total reserve for office was [$2.30 billion] as of 9/30 from 1.90 billion] as of [6/30]. And I'll just share that half of that continues to be qualitative factors versus quantitative reserve that we need for the -- as we look at the portfolio and the economic outlook and the portfolio of credit quality. So we continue to monitor this and make sure that our reserve is building as we think it is appropriate given the environment.

是的，布羅迪。截至 9 月 30 日，我們持有從他人購買的價值 24 億美元的 [SNC]。在 9/30 中，我們也領先了 9 億美元的聯合組織，其中 3 億美元是我們參與給其他人的。我認為你的下一個問題，雖然你一天要問 3 個問題，但我想就抵消問題發表評論。所以我們增加了辦公室儲備金。截至 9/30，辦公室準備金總額為 [23 億美元]，截至 [6/30] 為 19 億美元。我只想分享其中一半仍然是定性因素與我們所需的定量儲備——當我們審視投資組合、經濟前景以及信貸品質組合時。因此，我們將繼續監控這種情況，並確保我們的儲備正在按照我們認為適合的環境進行建造。

Next question comes from Ebrahim Poonawala with Bank of America.

下一個問題來自美國銀行的 Ebrahim Poonawala。

Just maybe Dominic for you. So as we think about -- you have a lot of excess capital, a lot of banking peers are pulling back -- just give us a sense of customer demand as you think about lending on the commercial side and how you're approaching? Are you pulling back in certain areas? Just give us a sense of the growth opportunity be it market share driven or just customer demand driven that you're seeing today?

也許多明尼克適合你。因此，當我們思考時，您擁有大量過剩資本，許多銀行同行正在撤資，當您考慮商業方面的貸款以及您的做法時，請讓我們了解客戶需求？您是否在某些領域有所退縮？請讓我們了解您今天看到的成長機會，無論是市場佔有率驅動還是客戶需求驅動？

Well, our priority has been mainly focusing on taking good care of our customers as you can see, actually back in March, some of our other former competitors were really hurting their customer in a big way. So one of the things that East West offer is stability and consistency. So we have, frankly, some really good commercial real estate clients that are year in and year out have been banking with us for decades, that went through the cycles of various economic conditions and actually have done really well. In fact, whenever there is a down cycle, they tend to do better. And we -- when there are customers like that, that find really great opportunities, we step up and take good care of them and make sure they get the financing needs.

嗯，我們的首要任務主要是照顧好我們的客戶，正如你所看到的，實際上早在三月份，我們的其他一些前競爭對手確實在很大程度上傷害了他們的客戶。因此，東西方提供的東西之一就是穩定性和一致性。因此，坦白說，我們有一些非常好的商業房地產客戶，他們年復一年地與我們合作數十年，經歷了各種經濟狀況的周期，實際上做得非常好。事實上，每當出現下行週期時，他們往往會做得更好。當有這樣的客戶發現真正的巨大機會時，我們會挺身而出，照顧好他們，確保他們得到融資需求。

But we're not chasing down every other customers who are fleeting other banks and things like that. So obviously, as we all know, the interest rate is a relatively high level. And there are not that many great deals out there. And also on the C&I side, many of our very strong customers are now out there making substantial investments. So in the standpoint of where are we today that we've got plenty of capital to be deployed. We are able to continue to take very good care of our customers for their needs.

但我們並不會追趕那些逃離其他銀行或類似情況的所有其他客戶。所以很明顯，眾所周知，利率是比較高的水平。而且那裡沒有那麼多很棒的優惠。在工商業方面，我們的許多實力雄厚的客戶現在都在進行大量投資。因此，從我們今天所處的位置來看，我們有足夠的資本可以部署。我們能夠繼續好好照顧客戶的需求。

But on the other hand, our customers are now out there making very aggressive purchases or acquisitions or that require a whole lot of additional line increases and so forth. So with that, I think that I would say that the growth is relatively somewhat stable, and I don't expect something dramatic just because of the market disruption that happened back in March.

但另一方面，我們的客戶現在正在進行非常積極的購買或收購，或需要大量額外的產品線增加等等。因此，我認為成長相對穩定，我預計不會因為三月發生的市場混亂而出現戲劇性的情況。

But secondly, I do see that we are getting more increase from customers from other banks. From the banks have felt all banks that currently are not doing well. Their customers are making increase to East West. We are prudently taking these new customer one at a time. We don't want to just quickly and then start bringing too many on and then just causing in digestion for ourselves. So we are just prudently taking them on one at a time. And then we feel that in the next few years, in general, the market is somewhat more favorable to East West simply because of the current competitive landscape.

但其次，我確實看到我們從其他銀行的客戶那裡獲得了更多的成長。從各家銀行都感覺到目前所有銀行的表現都不好。他們的客戶正在增加到東西方。我們會謹慎地一次接待一位新客戶。我們不想很快就開始帶來太多的東西，然後導致我們自己的消化。所以我們只是謹慎地一次接一個。然後我們認為，在未來幾年中，總體而言，由於當前的競爭格局，市場對東西方更加有利。

Got it. That was good color. And maybe just one, maybe, Chris, for you. And apologies if I missed it, but the special mention loans, we saw that pick up 95 bps versus 60 bps. What's driving that? Is it just your own internal portfolio review? Or are there certain areas within the commercial book where you're seeing some softness?

知道了。那是很好的顏色。也許只有一個，克里斯，給你。如果我錯過了，我很抱歉，但特別提及貸款，我們看到它上升了 95 個基點，而 60 個基點。是什麼推動了這一點？這只是您自己的內部投資組合審查嗎？或者你在商業書籍的某些領域發現了一些軟弱之處？

I'll let our Chief Risk Officer, address that one.

我會讓我們的首席風險長解決這個問題。

Thank you, Chris. When we look at that, honestly, there really aren't any drivers, one way or another or sector. It is really pretty broad-based, as I mentioned in the prepared remarks, we continue to monitor the portfolio very carefully. And as appropriate, given kind of where rates are, we do expect that there will be some kind of increases in the classified and the criticized asset ratio, given the very, very low basis those are (inaudible).

謝謝你，克里斯。老實說，當我們看到這一點時，確實沒有任何驅動因素，無論是哪種方式或部門。正如我在準備好的演講中提到的，它的基礎非常廣泛，我們將繼續非常仔細地監控投資組合。在適當的情況下，考慮到利率的情況，我們確實預期分類資產和受批評的資產比率將會增加，因為這些比率的基礎非常非常低（聽不清楚）。

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。

Irene and Chris, congrats on the new roles. I know you mentioned it's a little early on the expense front for next year. But just bigger picture, is there anything we need to watch out for any big-ticket items, either on the regulatory side or systems upgrades or anything like that, that would potentially keep that expense growth rate elevated next year?

艾琳和克里斯，祝賀新角色。我知道你提到明年的開支還為時過早。但從更大的角度來看，我們是否需要注意任何大件項目，無論是在監管方面還是系統升級或類似的方面，這可能會導致明年的費用成長率保持在較高水平？

Yes. I don't think so, Dave. I mean, obviously, we have the special assessment, the FDIC special assessment, but that will impact everyone in the industry, but nothing particular.

是的。我不這麼認為，戴夫。我的意思是，顯然我們有特別評估，FDIC 特別評估，但這會影響行業中的每個人，但沒有什麼特別的。

And then as a follow-up on the margin. First, it sounded like you mentioned maybe seeing a little bit of an impression near term, correct me if I'm wrong, but you guys also highlighted a pretty big deceleration and the increase in deposit costs with the spot barely up from the quarter average. So just wondering, absent any Fed rate changes, could you actually see NIM stabilize near term since you'll continue to benefit from earning assets repricing higher? And are you seeing that potentially drive some stabilization and growth into 2024?

然後作為邊際的後續行動。首先，聽起來你提到近期可能會看到一些印象，如果我錯了，請糾正我，但你們也強調了相當大的減速和存款成本的增加，現貨幾乎不高於季度平均水平。因此，我想知道，在聯準會利率沒有任何變化的情況下，您是否真的會看到近期淨利差穩定下來，因為您將繼續受益於收益資產重新定價的走高？您是否認為這有可能推動 2024 年的穩定和成長？

As I look to the fourth quarter, I certainly see the mix should we be able to continue the deposit growth from our customers that we're seeing as providing some lift to that compression risk. That having been said, if there's another Fed hike, there'll probably be some repricing of existing deposits that will work against us. So those are the dynamics that are at play, but I think you've captured the spirit of remarks well.

當我展望第四季時，我當然看到了我們是否能夠繼續客戶存款的成長，我們認為這會為壓縮風險提供一些提升。話雖如此，如果聯準會再次升息，現有存款可能會進行一些重新定價，這對我們不利。這些都是正在發揮作用的動力，但我認為你已經很好地抓住了言論的精神。

Maybe I'll just add. I mean, if you look at the third quarter and the trajectory of the NIM and this helps kind of inform our thoughts around this, so NIM from July was [3.45%] And then for August and September, we've got a little bit of better [3.5%] for both quarters, so months, excuse me. So that helps us kind of fray where we're at and why we're comfortable with the stabilization as we move forward.

也許我會補充一下。我的意思是，如果你看看第三季和淨息差的軌跡，這有助於我們了解這一點，所以7 月份的淨息差為[3.45%] 然後對於8 月和9 月，我們有一點兩季的表現都比較好[3.5%]，所以幾個月了，對不起。因此，這有助於我們了解目前的情況，以及為什麼我們對前進過程中的穩定性感到滿意。

The next question comes from Manan Gosalia with Morgan Stanley.

下一個問題來自摩根士丹利的馬南·戈薩利亞。

I wanted to ask about just a little bit more color on the funding side. It looks like you're getting some nice loan growth and it sounds like you're going to continue to lean in here. I think you noted that market deposit growth this quarter is coming from money market and time deposits. Is that where you're going to be focused on bringing in new funding to fund the loans?

我想詢問有關資金方面的更多資訊。看起來你的貸款成長不錯，而且你會繼續在這裡投資。我想您已經注意到本季的市場存款成長來自貨幣市場和定期存款。這是您將重點引入新資金來為貸款提供資金的地方嗎？

I think we're going to be looking across the board. And frankly, we've seen success across the board. In fact, on the consumer side, we're expecting to grow deposits driven by some initiatives we have internally with business checking accounts, on small and medium-sized business as well as consumers as well as a further push to better integrate our new mortgage customers into our checking ecosystem. So I think we'll see consumer lift that won't necessarily be at the higher-end cost, but we're also expecting to grow commercial balances.

我認為我們將全面審視。坦白說，我們已經看到了全面的成功。事實上，在消費者方面，我們預計存款將會成長，這是由於我們內部針對企業支票帳戶、中小型企業以及消費者採取的一些舉措，以及進一步推動更好地整合我們的新抵押貸款客戶進入我們的檢查生態系。因此，我認為我們會看到消費者的提升，但不一定會以高端成本為代價，但我們也預期會增加商業平衡。

And as Dominic alluded to, there have been opportunities for us to be selective and proactive with new customers to the bank. And we're obviously prioritizing new customers that come with significant deposits at the right price points.

正如多明尼克所提到的，我們有機會選擇性地、主動地為銀行提供新客戶。我們顯然會優先考慮那些以合適的價格擁有大量存款的新客戶。

So maybe that...

所以也許那個...

I also want to add that for our commercial clients -- a new commercial clients we brought in that have primary operating accounts that transfer over to East West Bank, it's going to take some time to set up the cash management online banking and whatnot. And in order to have a fully operated, it's going to take a few months. So therefore, those going to be a gradual increase when it comes to the noninterest-bearing deposits.

我還想補充一點，對於我們的商業客戶——我們引入的新商業客戶，其主要營運帳戶轉移到華美銀行，需要一些時間來建立現金管理網路銀行等。而要全面運作，還需要幾個月的時間。因此，無息存款將逐步增加。

Got it. Okay. And then maybe just to focus on the CDs and time deposits. It looks like you're seeing some good traction there. And I think I can see online that you're offering about a 4.5% rate. I guess it is slightly below market given where other banks are -- can you talk about how you're able to do that? Is it because of the longer relationships you have with your depositors? Is it relationship pricing elsewhere in the services you offer?

知道了。好的。然後也許只是專注於定期存款和定期存款。看起來你在那裡看到了一些很好的牽引力。我想我可以在網路上看到你們提供的利率約為 4.5%。我猜考慮到其他銀行的情況，它略低於市場水平——你能談談你是如何做到這一點的嗎？是因為您與儲戶的關係較長嗎？您提供的服務中的其他部分是否為關係定價？

I think we've had success both with our [rack] rates, which you're referring to, and also on selected new opportunities, we're able to look at exceptions and opportunities to bring folks in on an individualized basis. And I think that's one of the hallmarks of East West is they're able to look at the entire relationship and make appropriate business judgments to move forward on individual opportunities. And that's been part of what's given them. They're low-cost base they have today and allowed us to continue to attract the right customers with the right relationship going forward.

我認為我們在你提到的[機架]費率方面取得了成功，而且在選定的新機會方面也取得了成功，我們能夠尋找例外情況和機會，以個性化的方式吸引人們。我認為這是東西方的標誌之一，他們能夠審視整個關係並做出適當的商業判斷，以推進個人機會。這就是他們所得到的一部分。他們是當今的低成本基礎，使我們能夠繼續以正確的關係吸引正確的客戶。

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。

First one for me, just on deposit -- your deposit cost outlook kind of beyond the fourth quarter. If the forward curve plays itself out, I guess, how quickly do you think you might be able to start cutting deposit costs?

對我來說，第一個是關於存款——你的存款成本前景有點超出第四季度。我想，如果遠期曲線自行發揮作用，您認為您可以多快開始削減存款成本？

Well, there's going to be a bit of a lag over the near term. But as soon as the Fed starts moving, I think it will be a function of how fast the Fed starts moving. So when rates fell precipitously and rapidly in '20, the bank reacted pretty well. And obviously, it will be a function of how and why the Fed moves as to how we'll react and lag on the next turn year.

嗯，短期內會有一些延遲。但一旦聯準會開始行動，我認為這將取決於聯準會開始行動的速度。因此，當利率在 20 世紀急劇而迅速下降時，銀行的反應相當不錯。顯然，這將取決於聯準會如何以及為何採取行動，以及我們在下一年將如何反應和滯後。

Okay. And then on office CRE, one of your competitors had a couple of new nonperformers on the suburban side of office. Are you seeing any performance differences within your office portfolio as it relates to suburban versus central business district?

好的。然後在辦公室 CRE 上，你的一個競爭對手在辦公室的郊區增加了一些新的表現不佳的員工。您是否發現您的辦公大樓組合在郊區與中央商務區方面有任何性能差異？

Yes. Matthew, we actually don't have much exposure at all for any kind of central business district, quite honestly. And you can see that reflected really with the loan sizes, right, as far as the size of the loan, if it's granular or smaller or smaller properties. So based on that, I would say most of ours is really more kind of suburban or non-kind of CBD. With that said, I would say as we continue to [come through] the portfolio, although there are loans that we are working out with clients, overall, we're comfortable with the grades, we're comfortable with the strategy. And there's no major difference that we're seeing in one sector or region geographically.

是的。馬修，老實說，我們實際上對任何類型的中央商務區都沒有太多的了解。你可以看到，這確實反映在貸款規模上，對吧，就貸款規模而言，如果它是細粒度的或更小的財產。因此，基於此，我想說我們大多數人實際上更像是郊區或非 CBD。話雖如此，我想說，隨著我們繼續[完成]投資組合，儘管我們正在與客戶合作提供一些貸款，但總的來說，我們對成績感到滿意，我們對策略感到滿意。我們在某個行業或地區的地理上沒有看到重大差異。

Our next question comes from Timur Braziler with Wells Fargo.

我們的下一個問題來自富國銀行的 Timur Braziler。

Two big picture questions for me. Maybe for Dominic. Just on the timing of the buyback, I mean, how much of that is symbolic in nature? It's a question that it seems like you get every single conference call. And I'm just wondering, announcing it here. How much does that speak to your confidence in navigating the current credit cycle?

對我來說有兩個大問題。也許是為了多明尼克。就回購的時間而言，我的意思是，其中有多少是像徵性的？這是一個似乎你每次電話會議都會遇到的問題。我只是想知道，在這裡宣布這一點。這在多大程度上說明了您對當前信貸週期的信心？

I don't quite -- Irene and Chris, did you hear the question? I didn't quite exactly heard it.

我不太明白──艾琳和克里斯，你們聽到這個問題了嗎？我沒聽清楚。

Maybe I'll start to answer your question. Look, I mean, I think as we look at the uses of capital, highest investors of capital, also the growth of the capital. The confidence that we have the capital continue to grow not just quarter-by-quarter, but if we look multiyear, this is part of our thought, this is quite candidly, just where the capital levels are at. So I think in answer to your question, yes, we do think it is a commentary on kind of the strength of where we see the franchises is and what will happen with our capital level.

也許我會開始回答你的問題。聽著，我的意思是，我認為當我們關注資本的使用、資本的最高投資者以及資本的成長。我們對資本的信心不僅逐季度持續增長，而且如果我們著眼於多年，這是我們想法的一部分，這是相當坦率的，這正是資本水平所在的位置。所以我認為在回答你的問題時，是的，我們確實認為這是對我們所看到的特許經營權的實力以及我們的資本水平將會發生什麼的評論。

Okay. That's great. And then maybe just talk to the recent management changes and how that relates to your thinking on succession planning?

好的。那太棒了。然後也許只是談談最近的管理層變動以及這與您對繼任計劃的思考有何關係？

Oh, that- in fact, I think this is always at the East West Bank's sort of like long-term plan, leadership development, succession planning. And we are very pleased, in fact, that we're able to get Chris to join us in the CFO position and which allow us to get Irene to rotate to a very important position to be our Chief Risk Officer. We feel that as our organization continues to grow, it's going to be very important for us to make sure that we have very, very solid and strong leadership, both in the finance area and also in the risk area. We can't think of any better person that can feel the Chief Risk Officer job going forward, then Irene. And also thank goodness, Chris came in and shortly, and act like he's been moon lighting at East West for years. So this has been all working out pretty good for us because I think we strengthened our executive leadership depth at East West, and this is going to be pretty good for us for many years ago.

哦，事實上，我認為這一直是華美銀行的長期計劃、領導力發展、繼任計劃。事實上，我們非常高興能夠讓 Chris 加入我們擔任財務官，這讓我們能夠讓 Irene 輪流擔任一個非常重要的職位，擔任我們的首席風險官。我們認為，隨著我們組織的不斷發展，確保我們在財務領域和風險領域擁有非常非常堅實和強大的領導力對我們來說非常重要。我們想不出還有哪個人比艾琳更能感受到首席風險官職位的發展。還要謝天謝地，克里斯很快就進來了，表現得好像他多年來一直在東西方照明一樣。因此，這一切對我們來說都非常好，因為我認為我們加強了 East West 的行政領導深度，這對我們多年前來說都是非常好的。

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。

As it relates, first, to your comments about kind of planning longer term. I'm wondering if there are any additions to the interest rate swap book, which I think was $5 billion as of June 30. Because the quick math looks like the headwind there was maybe $10 million or $12 million higher quarter-over-quarter versus the second quarter. So thinking about how kind of view that going forward?

首先，這與您對長期規劃的評論有關。我想知道利率掉期帳簿中是否有任何新增內容，我認為截至6 月30 日，該利率掉期帳簿為50 億美元。因為快速計算看起來像是逆風，所以季度環比可能增加了1000 萬美元或1200 萬美元。第二季。那麼思考未來的發展前景如何呢？

Sure. Yes. We did add a total of $750 million for the quarter, $250 million of which Irene had mentioned on the last earnings call, another [$500 million] came after that. And we've done a further $250 million just for transparency here in the fourth quarter.

當然。是的。我們確實為該季度增加了總計 7.5 億美元，其中艾琳在上次財報電話會議上提到了 2.5 億美元，此後又增加了 [5 億美元]。我們在第四季又投入了 2.5 億美元來提高透明度。

To your board start base?

到你的董事會起始基地？

Yes, with a forward start. So we're looking at essentially protecting against that downside risk and as the previous caller alluded to, the risk that the Fed moves precipitously downward, we're sort of protecting ourselves against that profile. The total cost collectively of all of the swaps for the quarter was $24 million, which is to say, our income would have been $24 million higher had we not with those in place, but we think that's prudent and appropriate protection going forward. That's costing us currently or cost us in the quarter, 14 basis points to the NIM, but we think that's a reasonable price to pay for that long-term insurance that we're putting in place.

是的，向前開始。因此，我們正在考慮從根本上防範這種下行風險，正如前一位來電者所提到的，聯準會急劇下行的風險，我們在某種程度上保護自己免受這種風險的影響。本季所有互換的總成本為 2,400 萬美元，也就是說，如果我們沒有採取這些措施，我們的收入將會增加 2,400 萬美元，但我們認為這是未來審慎且適當的保護措施。這使我們目前或本季的成本比淨利差增加了 14 個基點，但我們認為對於我們正在實施的長期保險來說，這是一個合理的價格。

I appreciate that. And just remind me, in your loan yield slide that's 41% fixed and hybrid and fixed is that adjusted for the swaps or adjusted is a little over 50%?

我很感激。請提醒我，在您的貸款收益率幻燈片中，41％是固定的，混合的，固定的是根據掉期調整還是調整後的利率略高於50％？

It is not adjusted.

沒有調整。

Yes. The Slide 14 numbers are the actual underlying loans and the swaps are an overlay to that. And again, keep in mind that some of the swaps as Irene mentioned, the most recent ones have all been forward starting. So there's a bit of a lag there before they will take effect, but there's obviously a component.

是的。第 14 張投影片的數字是實際的基礎貸款，掉期是其疊加。再次請記住，正如艾琳所提到的，最近的一些交換都是向前開始的。因此，在它們生效之前會有一點延遲，但顯然有一個組件。

Our next question comes from Chris McGratty with KBW.

我們的下一個問題來自 KBW 的 Chris McGratty。

Great. Maybe for the team. You talked about capital -- use of capital a lot the buybacks seemingly, I think the market likes that. What about an appetite to reposition a portion of the bond portfolio given the move in rates?

偉大的。也許是為了團隊。你談到了資本——資本的使用，似乎是回購，我認為市場喜歡這樣。鑑於利率變動，是否有興趣重新配置部分債券投資組合？

I think we're always looking at the right portfolio strategies. And I think we're going to be looking at our cash positions, our portfolio strategies, and our growth dynamics as we look here at the fourth quarter going into planning for next year, and we'll take all of that into consideration. And I think as Dominic has said, we're shareholder-friendly we'll do the right thing. But we'll be very thoughtful about what that right thing should be.

我認為我們一直在尋找正確的投資組合策略。我認為，當我們在第四季度製定明年的計劃時，我們將考慮我們的現金狀況、投資組合策略和成長動力，我們將考慮所有這些。我認為正如多明尼克所說，我們對股東友好，我們會做正確的事。但我們會認真思考正確的事情應該是什麼。

Okay. Great. And then a lot of questions about office and maybe by the market. But Dominic, do you think that's where the -- we should be focusing. I mean we've seen some C&I credits from some of your peers go sideways this quarter. I guess if you would've stack rank where you're most worried about credit going into next year? Like what would you say?

好的。偉大的。然後是很多關於辦公室和市場的問題。但是多明尼克，你認為這就是我們應該關注的地方嗎？我的意思是，我們已經看到一些同業的 C&I 信用在本季度出現了下滑。我想您是否會將明年最擔心的信用排名放在第一位？就像你會說什麼？

Right now, I'm not too concerned about much anything, frankly, from a credit perspective. We actually are in pretty good shape. I mean we do have a slight pickup in terms of charge-offs, but that's really compared with relatively, I mean, almost like no charge-off at all for the last few quarters. So I think that we just kind of normalize at this point. At this stage, I really -- I mean if I look at the overall credit portfolio, I really haven't seen much that I would say really got me concerned. I mean I will reflect back 5 years ago, 6 years ago, I mean, this oil and gas portfolio that we had was not very good. And so we had a little bit of charge-off. But the nice thing about having a very diverse portfolio that we have is that despite the fact that we have some challenges with our oil and gas portfolio, the fact is we still end making record earnings, simply because everything else is doing so well. So that one particular industry couldn't hurt us much.

坦白說，從信用角度來看，現在我不太關心任何事情。事實上我們的狀態非常好。我的意思是，我們在沖銷方面確實略有上升，但這實際上是相對而言的，我的意思是，幾乎就像過去幾個季度根本沒有沖銷一樣。所以我認為我們現在已經正常化了。在這個階段，我真的——我的意思是，如果我看看整體信貸投資組合，我真的沒有看到太多真正讓我擔心的事情。我的意思是，我會回顧 5 年前、6 年前，我的意思是，我們的石油和天然氣投資組合並不是很好。所以我們有一點沖銷。但我們擁有非常多樣化的投資組合的好處是，儘管我們的石油和天然氣投資組合面臨一些挑戰，但事實是我們最終仍然創造了創紀錄的收益，僅僅是因為其他一切都表現得很好。因此，某一特定產業不會對我們造成太大傷害。

So when I look at CRE right now, office building, a lot of people have their eyes on it. And I'm pretty sure at some point, we may take a hit here and there. It's just that the overall portfolio is not big enough. The size of this portfolio to the size of loans. The average size, as you can see, is so small and the LTV is so low and so therefore, at the end of the day, and the earnings for everything else is so high. And I think that all in all, we should be in great shape. So at this stage right now, I'm still not concerned. And I would tell you though, I always expect that by the second quarter, the third quarter will be going through a recession. That's what I expected. A year, 1.5 years ago.

所以當我現在看華創、辦公大樓時，很多人都把目光投向了它。我很確定在某個時候，我們可能會在這裡或那裡受到打擊。只是整體的投資組合還不夠大。此投資組合的規模取決於貸款的規模。正如您所看到的，平均規模非常小，生命週期價值也非常低，因此，歸根結底，其他所有項目的收益都非常高。我認為總而言之，我們應該保持良好的狀態。所以在現在這個階段，我還是不擔心。但我想告訴你，我一直預計到第二季、第三季將經歷衰退。這正是我所期望的。一年前，1.5年前。

Again, it didn't turn out. And would it be like 6 months from now? Or is that actually we are exactly in the soft lending who knows. But the way I look at it is that it doesn't really matter whether it's a recession or soft lending. Our position is that East West will continue to stay true to our philosophy, which is having a very diverse portfolio and having a strong customer base. And this is how we make sure that we -- at the end of the day, relatively speaking, we always end up doing better than the other banks.

結果還是沒有結果。大概是 6 個月後吧？或者說，我們其實正處於軟貸款之中，誰知道呢。但我的看法是，經濟衰退還是軟貸款並不重要。我們的立場是，East West 將繼續恪守我們的理念，即擁有非常多樣化的產品組合和強大的客戶群。這就是我們如何確保——相對而言，最終我們總是比其他銀行做得更好。

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

我們的問答環節到此結束。我想將會議轉回給 Dominic Ng，讓他發表閉幕詞。

Well, I just want to thank everyone for listening to our call today, and I'm looking forward to talking to all of you again in January. Thank you.

好吧，我只是想感謝大家今天收聽我們的電話，我期待著一月再次與大家交談。謝謝。

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

會議現已結束。感謝您參加今天的演講。你們現在可以斷開連結了。