East West Bancorp Inc (EWBC) 2024 Q1 法說會逐字稿

Good day. Welcome to the East West Bancorp's First Quarter 2024 Earnings Call. (Operator Instructions) Please note, this event is being recorded.

再會。歡迎參加 East West Bancorp 2024 年第一季財報電話會議。 （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 afternoon, and thank you, everyone, for joining us to review East West Bancorp's First Quarter 2024 Financial Results. With me are Dominic Ng, Chairman and Chief Executive Officer; Christopher Del Moral-Niles, Chief Financial Officer; and Irene Oh, Chief Risk Officer.

謝謝你，接線生。下午好，感謝大家與我們一起回顧華美銀行 2024 年第一季的財務表現。與我同行的還有董事長兼執行長吳多才 (Dominic Ng)； Christopher Del Moral-Niles，財務長；和首席風險長 Irene Oh。

This call is being recorded and will be available for replay on our Investor Relations website. The slide deck referenced during this call is available on our site.

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。本次通話期間引用的幻燈片可在我們的網站上找到。

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 measures. 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.

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。管理階層可以討論非公認會計準則財務措施。有關風險因素以及 GAAP 與非 GAAP 財務指標的更詳細說明，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 afternoon, and thank you for joining us for our first quarter earnings call. I'm pleased to report first quarter results that laid a strong foundation for 2024. First quarter 2024 net income was $285 million or $2.03 per diluted share. Excluding the FDIC charge, first quarter adjusted earnings per share was $2.08, up 3% from the fourth quarter.

謝謝你，艾德麗安。下午好，感謝您參加我們的第一季財報電話會議。我很高興地報告第一季業績，為 2024 年奠定了堅實的基礎。不計 FDIC 費用，第一季調整後每股收益為 2.08 美元，比第四季成長 3%。

We grew average assets during the quarter, with average loans up 1%. We continue to grow residential mortgage, driven by our differentiated mortgage products. Average C&I balances were higher, and commercial real estate loans remained flat.

本季我們的平均資產有所成長，平均貸款成長了 1%。在差異化抵押貸款產品的推動下，我們的住宅抵押貸款業務持續成長。平均商業和工業餘額較高，商業房地產貸款保持穩定。

We grew average deposits by $2 billion to a new record level, reflecting the success of our branch-based Lunar New Year CD campaign. During the quarter, we paid off $4.5 billion of BTFP while reducing our total borrowings by $1 billion. We also took an opportunity to invest excess cash into Ginnie Mae floating rate securities.

我們的平均存款增加了 20 億美元，達到新的紀錄水平，反映出我們分行農曆新年 CD 活動的成功。本季度，我們償還了 45 億美元的 BTFP，同時減少了 10 億美元的總借款。我們也藉此機會將多餘的現金投資於吉利美浮動利率證券。

Our asset quality remains solid, and credit is performing as expected. First quarter annualized net charge-offs were up by 2 basis points to 17 basis points. The nonperforming asset ratio was 23 basis points at quarter end.

我們的資產品質保持穩健，信貸表現符合預期。第一季年化淨沖銷增加 2 個基點，達到 17 個基點。季末不良資產率為23個基點。

We continue to proactively manage our credit risk. We added 10% to our commercial real estate loan allowances, bringing our total allowance for loan losses to 1.29%. These efforts continue to drive shareholder value with an 18% return on tangible common equity and a 1.6% return on average assets. Tangible book value per share also grew 2% quarter-over-quarter and 14% year-over-year.

我們繼續積極主動地管理我們的信用風險。我們將商業房地產貸款準備金增加了 10%，使貸款損失準備金總額達到 1.29%。這些努力持續推動股東價值，有形普通股報酬率達 18%，平均資產報酬率達 1.6%。每股有形帳面價值也較上季成長 2%，較去年同期成長 14%。

Our first quarter results speak to the strength of our diversified business model and our conservatively managed balance sheet. Looking forward, we remain focused on serving our customers and growing relationships and are well positioned to outperform the industry in 2024 and beyond.

我們第一季的業績證明了我們多元化業務模式和保守管理的資產負債表的實力。展望未來，我們將繼續專注於服務客戶和發展關係，並做好充分準備，在 2024 年及以後超越產業。

I will now turn the call over to Chris to provide more details on our first quarter financial performance. Chris?

我現在將把電話轉給克里斯，以提供有關我們第一季財務業績的更多詳細資訊。克里斯？

Thank you, Dominic. Turning to loans on Slide 4. Let me comment on the trends in each of our major lending categories. First, demand for residential mortgage proved relatively durable despite seasonal slowdowns. Even with the generally elevated rate environment, we continue to add residential mortgage loans in Q1, and we are pleased to see both our residential and home equity pipelines strengthening going into the second quarter.

謝謝你，多米尼克。轉向幻燈片 4 上的貸款。首先，儘管季節性放緩，住宅抵押貸款的需求仍相對持久。即使在普遍較高的利率環境下，我們仍會在第一季繼續增加住宅抵押貸款，我們很高興看到我們的住宅和房屋淨值管道在進入第二季度時有所加強。

Second, average C&I balances grew 2%, driven in part by an uptick of utilization we saw at the end of the fourth quarter. On a period-end basis, balances declined, but that was really driven primarily by decreases in capital call line usage and drops in our Hong Kong portfolio. Based on our current pipeline, we expect C&I growth to pick up in Q2.

其次，平均 C&I 餘額增加了 2%，部分原因是第四季末利用率上升。從期末來看，餘額有所下降，但這實際上主要是由於資本呼叫線路使用量的減少和我們香港投資組合的下降所致。根據我們目前的管道，我們預計 C&I 成長將在第二季加快。

Third, average CRE balances remained flat, while period-end CRE balances were down for the quarter. We continue to work with our long-standing relationship clients, but we are targeting only modest CRE growth for 2024.

第三，平均商業房地產餘額保持平穩，而本季期末商業房地產餘額有所下降。我們將繼續與長期合作的客戶合作，但我們的目標是 2024 年商業房地產的適度成長。

Slide 5 summarizes trends in our securities portfolio. During the first quarter, we took steps to enhance our liquidity profile by putting our cash to work in high-quality liquid assets. We added short-duration Ginnie Mae floaters at a rate of SOFR plus 115, much of which settled towards the end of the quarter.

投影片 5 總結了我們證券投資組合的趨勢。第一季度，我們採取措施，將現金投入優質流動資產，以增強流動性。我們以 SOFR 加 115 的比率添加了短期吉利美浮動利率，其中大部分在本季度末穩定下來。

With the purchase of these securities, the book yield of our portfolio rose 67 basis points to 3 spot 61 at quarter end. Our cash and securities portfolio rose to 23% of total assets, a level of on-balance sheet liquidity we see as appropriate at our current size.

透過購買這些證券，我們投資組合的帳面收益率在季度末上升了 67 個基點，達到 3 點 61。我們的現金和證券投資組合升至總資產的 23%，我們認為這一表內流動性水準適合我們目前的規模。

Moving on to deposits on Slide 6. As Dominic mentioned, we grew deposits to record levels this quarter, with average growth of 4% or $2 billion and nearly $2.5 billion on a period-end basis. We saw growth in retail, commercial and across all geographies. This growth reflects the focus and dedication of our bankers and the loyalty and resilience of our broad-based customer base.

接下來是幻燈片 6 上的存款。我們看到零售、商業和所有地區的成長。這種增長反映了我們銀行家的關注和奉獻精神以及我們廣泛的客戶群的忠誠度和韌性。

Looking forward, we continue to focus on adding granular consumer and business deposits. During the quarter, we also put up $3.5 billion of floating rate Federal Home Loan Bank advances at a cost of SOFR plus approximately 20 basis points. These advances have a laddered maturity schedule, with $1.5 billion maturing in the next 12 months and the balance over 2025.

展望未來，我們將繼續專注於增加細粒度的消費者和企業存款。本季度，我們還以 SOFR 加上約 20 個基點的成本提供了 35 億美元的浮動利率聯邦住房貸款銀行預付款。這些預付款有階梯式的到期時間表，其中 15 億美元將在未來 12 個月內到期，餘額將在 2025 年到期。

Slide 7 covers our net interest income trends. Q1 dollar net interest income was $565 million, while our net interest margin was 3 spot 34. The margin compressed more than expected as we decided to extend and upsize our CD campaign. Time deposits accounted for much of the NIM impact of 14 basis points.

投影片 7 介紹了我們的淨利息收入趨勢。第一季的美元淨利息收入為 5.65 億美元，而我們的淨利差為 3:34。定期存款佔淨利差 14 個基點影響的大部分。

We expect further NIM compression in Q2 as deposit mix shift continues in this higher-for-longer environment. Nonetheless, as we move through the year, we expect an acceleration of asset growth will lead to more NIM stability and a bottoming of the NIM later in the second half of the year.

我們預計，隨著存款結構在這種長期較高的環境下繼續變化，第二季淨利差將進一步壓縮。儘管如此，隨著今年的進展，我們預計資產成長的加速將導致淨利差更加穩定，並在下半年稍後觸底。

And now I'll hand the call over to Irene to talk about asset quality.

現在我將把電話轉給艾琳，討論資產品質問題。

Thank you, Chris, and good afternoon to all on the call. As you can see from Slide 8, the asset quality of our portfolio continues to broadly outperform the industry, but with credit beginning to normalize.

謝謝你，克里斯，祝所有與會人員下午好。正如您從幻燈片 8 中看到的，我們投資組合的資產品質繼續大幅優於行業，但信貸開始正常化。

As Dominic mentioned, we recorded net charge-offs of 17 basis points in the first quarter or $23 million. Quarter-over-quarter, nonperforming assets rose by 7 basis points to 23 basis points of total assets. The increase in commercial real estate was driven by two credits: one construction and one office property. Nonetheless, the absolute levels remain relatively low.

正如 Dominic 所提到的，我們第一季的淨沖銷額為 17 個基點，即 2,300 萬美元。不良資產季增 7 個基點，佔總資產的 23 個基點。商業房地產的成長由兩項信貸推動：一項是建築業，另一項是辦公物業。儘管如此，絕對水平仍然相對較低。

The criticized loans ratio increased during the quarter to 2.3% of loans. The special mention loans ratio also increased 28 basis points quarter-over-quarter to 1.05% of loans, and the classified loans ratio increased 15 basis points to 1.25%.

本季受到批評的貸款比例上升至貸款的 2.3%。關注貸款比率也較上季上升28個基點至貸款的1.05%，分類貸款比率較上季上升15個基點至1.25%。

We recorded a lower provision for credit losses of $25 million in the first quarter compared with $37 million for the fourth quarter, given the resilient economic environment and current CECL outlook. We remain vigilant and proactive in managing our credit risks. As we look forward, we continue to expect quarterly net charge-offs to be in the range of 15 to 25 basis points.

考慮到彈性的經濟環境和當前的 CECL 前景，我們第一季的信貸損失準備金減少了 2,500 萬美元，而第四季為 3,700 萬美元。我們在管理信用風險方面保持警惕和積極主動。展望未來，我們繼續預期季度淨沖銷將在 15 至 25 個基點範圍內。

Turning to Slide 9. The total allowance for loan losses increased $1 million quarter-over-quarter, primarily reflecting a $21 million increase in our allowance for loan losses for commercial real estate loans. Specifically, we increased the reserve for Office by $6 million, bringing the coverage ratio to 273 basis points for office loan. We believe we are adequately reserved for the content of our loan portfolio given the current economic outlook.

轉向投影片 9。具體來說，我們將辦公室準備金增加了 600 萬美元，使辦公室貸款覆蓋率達到 273 個基點。我們相信，鑑於當前的經濟前景，我們對貸款組合的內容有足夠的保留。

Turning to Slide 10. All of East West regulatory capital ratios remain well in excess of regulatory requirements for well-capitalized institutions and well above regional and national bank averages. East West Common Equity Tier 1 capital ratio stands at a robust 13.5%, while the tangible common equity ratio stayed relatively flat and 9.3%. These capital levels place us among the most well-capitalized banks in the industry.

轉向投影片 10。 East West普通股一級資本比率維持在13.5%的強勁水平，而有形普通股比率保持相對平穩，為9.3%。這些資本水準使我們躋身業內資本最雄厚的銀行之列。

East West repurchased 1.2 million shares of common stock during the first quarter for approximately $82 million at just under $70 a share. We currently have $89 million of repurchase authorization that remains available for future buybacks. East West also redeemed $117 million of trust preferred securities in the first quarter. East West's second quarter 2024 dividend will be payable on May 17, 2024, to stockholders of record on May 3, 2024.

East West 在第一季以約 8,200 萬美元的價格回購了 120 萬股普通股，每股價格略低於 70 美元。我們目前擁有 8,900 萬美元的回購授權，可供未來回購。 East West也在第一季贖回了1.17億美元的信託優先證券。 East West 的 2024 年第二季股利將於 2024 年 5 月 17 日支付給 2024 年 5 月 3 日登記在冊的股東。

I will now turn the call back to Chris to share our outlook for the 2024 full year. Chris?

現在我將把電話轉回給 Chris，分享我們對 2024 年全年的展望。克里斯？

Thank you, Irene. Our full year outlook has shifted slightly. Let me highlight your changes. We now assume a resilient first half with the economy beginning to soften later in the year. We now expect rate cuts to begin in Q3.

謝謝你，艾琳。我們的全年展望略有變化。讓我強調一下你的改變。我們現在假設上半年經濟將呈現彈性，而今年稍後經濟將開始疲軟。我們現在預計降息將於第三季開始。

We expect loan growth to pick up in the second quarter and for end-of-year loan growth to still be in the range of 3% to 5%, buoyed by continued strength in our residential mortgage and a growing C&I portfolio. Given fewer expected rate cuts, we're raising our net interest income guidance and now only expect a decline in the range of 2% to 4%, up from our prior guidance.

我們預計第二季貸款成長將加快，年末貸款成長仍將在 3% 至 5% 的範圍內，這得益於我們的住宅抵押貸款持續強勁以及不斷增長的工商業投資組合。鑑於預期降息幅度較小，我們正在上調淨利息收入指引，目前預計降幅僅比先前的指引高出 2% 至 4%。

With that, I will now open the call for questions. Operator?

現在，我將開始提問。操作員？

(Operator Instructions) Your first question comes from Jared Shaw with Barclays.

（操作員說明）您的第一個問題來自巴克萊銀行的 Jared Shaw。

Just looking at margin and NII, I guess, what's holding you back from being more optimistic there? You're seeing loan growth. You have the securities -- the tailwind from securities. Is that just all being absorbed by higher expected deposit costs? Maybe just walk us through some of that, that would be great.

只要看看利潤率和NII，我想，是什麼阻礙了您對此更加樂觀？你會看到貸款成長。你擁有證券－證券的順風車。這一切是否都被更高的預期存款成本所吸收？也許只是引導我們完成其中的一些，那就太好了。

Sure. So for the record, we are raising our NII guidance for the year. And so I think we are a little more optimistic here as we move into the rest of the year. That has been said, yes, we expect more deposit mix migration if we stay in a higher-for-longer environment, and that seems to be what we're sort of on pace for here for the second quarter. So we'll give some of that up in the deposit mix and the cost of deposits.

當然。因此，鄭重聲明，我們正在提高今年的國家資訊基礎設施指引。因此，我認為，隨著今年剩餘時間的到來，我們會更加樂觀。話雖如此，是的，如果我們長期處於較高水平的環境中，我們預計會有更多的存款組合遷移，而這似乎正是我們第二季的進度。因此，我們將在存款組合和存款成本中放棄其中的一部分。

And I would also remind you that late in March, we refinanced the BTFP, and that had been at a very attractive level. And we'll obviously replace that largely with the CD campaign balances, but those are of a higher cost. So there's an inherent drag from that refinancing that's just baked in. And the Federal Home Loan Bank advances also at a slightly higher cost, of course.

我還要提醒大家，三月底，我們為 BTFP 進行了再融資，當時的水平非常有吸引力。顯然，我們將主要用 CD 戰役餘額來取代它，但這些成本更高。因此，剛開始的再融資存在固有的拖累。

Okay. And I guess, as my follow-up, just looking at capital. Even with the buyback and the redemption of the trust preferred, we're still seeing CET1 grow higher. How should we be thinking about sort of upper limits of capital, where you feel comfortable with the upper limits of capital? And would the buyback be the primary way to limit or control that given the loan growth expectation?

好的。我想，作為我的後續行動，我只是專注於資本。即使回購和贖回優先信託，我們仍然看到 CET1 成長更高。在您對資本上限感到滿意的情況下，我們應該如何考慮資本上限？考慮到貸款成長預期，回購是否是限製或控制這種情況的主要方式？

We've commented that we thought TCE was a relevant measure for us to focus in on, and we're focused in on maintaining that and no longer warehousing additional capital. And so we'll be proactive in all the actions. Obviously, we announced a dividend again today. We still have some authorization, and we'll continue to, of course, use our balance sheet to support our customers and grow our balance sheet to optimize capital.

我們評論說，我們認為 TCE 是我們值得關注的相關指標，我們致力於維持這項指標，不再儲存額外資本。因此，我們將積極主動地採取所有行動。顯然，我們今天再次宣布了股息。我們仍然擁有一些授權，當然，我們將繼續使用我們的資產負債表來支持我們的客戶並擴大我們的資產負債表以優化資本。

Your Next question comes from Casey Haire with Jefferies.

您的下一個問題來自 Jefferies 的 Casey Haire。

So one other follow-up on the margin. So Chris, if I'm reading -- understanding you correctly, you do expect more negative mix shift on the funding side. I get the BTFP and the borrowings, but what about DDA mix? What does your guide assume in terms of how much more attrition there?

因此，還有另一個後續行動。所以克里斯，如果我正確理解你的意思，你確實預期資金方面會出現更多負面的組合變化。我得到了 BTFP 和借款，但是 DDA 組合呢？您的指南對人員流失率有何假設？

Look, we're still at 25%, even as we sit here today, April 19, 20. So we feel comfortable that, that number has come down reasonable, and it will probably bottom somewhere in the mid-20s area, which we might be close to.

看，即使我們今天（20 年4 月19 日）坐在這裡，我們仍然處於25% 的水平。對此感到滿意。

I think that's a function of how we see the outlook shift as we move later into the quarter. Our expectation previously had been that when the Fed started to lower rates, we would see that deposit migration ease. Fed hasn't started to lower rates yet, so that is continuing sort of month-over-month as we move through, and it's somewhat outlook-dependent.

我認為這取決於我們如何看待本季後期前景變化。我們先前的預期是，當聯準會開始降息時，我們會看到存款遷移放緩。聯準會尚未開始降息，因此隨著我們的進展，降息正在逐月持續，並且在某種程度上取決於前景。

Got you. Okay. And then just switching to credit, I guess, Irene, for you. You guys are sticking with your guidance on loss rates despite some decent migration trends. We've seen that from other banks. Just wondering what gives you the confidence to keep a rather benign loss guide given these migration trends?

明白你了。好的。然後就轉向信用，我想，艾琳，為了你。儘管出現了一些不錯的遷移趨勢，但你們仍堅持對損失率的指導。我們已經從其他銀行看到了這一點。只是想知道，鑑於這些遷移趨勢，是什麼讓您有信心保持相當良性的損失指南？

Yes. Great question. I think when we look at it at a granular level, loan by loan, the loan reviews that we're doing, we're very comfortable as far as the reserving that we are doing, the grounds-up kind of analysis of the portfolio and on the charge-offs and our guidance. I think quite honestly, it is, in my mind, kind of a wide range if you look at it quarter-by-quarter, but reflects kind of our views and our understanding of the portfolio today, right?

是的。很好的問題。我認為，當我們從細粒度來看，逐筆貸款，我們正在做的貸款審查時，我們對我們正在做的準備金、投資組合的基礎分析感到非常滿意以及沖銷和我們的指導。老實說，在我看來，如果你按季度查看的話，範圍很廣，但反映了我們今天對投資組合的看法和理解，對嗎？

Your next question comes from Dave Rochester with Compass Point.

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

Just back on capital. Should we just assume that -- you mentioned, I think, the TCE ratio or CET1 ratio sort of flat lines from here since you're focused on those going forward and whatever you guys need to do in buybacks to sort of solve for that, we should just expect to see some kind of a quarterly buyback going forward?

剛回到資本。我們是否應該假設——我認為，你提到的 TCE 比率或 CET1 比率從這裡開始呈扁平線，因為你專注於未來的發展，以及你們在回購中需要做的任何事情來解決這個問題，我們應該期待看到某種形式的季度回購嗎？

I think we're going to obviously use our balance sheet to support our customers. And lending growth will still be the primary use of capital, and that will continue to be the case. To the extent lending growth perhaps is a little softer, maybe as it was in Q1, we might add securities, and that can also manage that number. We'll continue to pay a strong dividend, and buybacks is always sort of our last choice, but one that we have the flexibility to opportunistically call upon when we see the right environment.

我認為我們顯然將利用我們的資產負債表來支持我們的客戶。貸款成長仍將是資本的主要用途，而且情況將繼續如此。在某種程度上，貸款成長可能有點疲軟，也許就像第一季一樣，我們可能會增加證券，這也可以管理這個數字。我們將繼續支付豐厚的股息，回購始終是我們最後的選擇，但當我們看到合適的環境時，我們可以靈活地機會主義地進行回購。

All right. Appreciate that. And then just as a follow-up, what's the impact of a rate cut now on your NII? I know you'd mentioned something like $1.5 million to $2 million a month last quarter. Does that range still work?

好的。感謝。接下來，現在降息對您的 NII 有何影響？我知道您提到上個季度每月 150 萬至 200 萬美元。這個範圍還有效嗎？

And I know you mentioned NIM bottoming in the second half of the year. If you had to guess, is that your 3Q or 4Q? And what's the timing of NII bottoming? Does it coincide with that? Or could that actually bottom a little bit sooner because of growth?

我知道你提到NIM在下半年觸底。如果你必須猜的話，這是你的 3Q 還是 4Q？ NII 觸底的時間是什麼時候？與此相符嗎？或者說，由於成長，這一數字實際上會更快觸底嗎？

So yes, I believe both the third and the fourth quarter and the second half. And I believe it will bottom somewhere in the second half. With regard to sort of NII, we do think it follows that same trend and also similarly on a dollar basis. Likely comes back stronger towards the end of the year.

所以是的，我相信第三節、第四節和下半場。我相信下半年會觸底。對於某種類型的NII，我們確實認為它遵循相同的趨勢，並且在美元基礎上也類似。到年底可能會變得更加強勁。

And our actual NII sensitivity has increased in part because we added cumulatively over $2 billion of floating rate securities. And that just introduces a little more sensitivity. And so it's closer to $3 million per cut as we look forward now.

我們實際的 NII 敏感度有所提高，部分原因是我們累積增加了超過 20 億美元的浮動利率證券。這只會帶來更多的敏感性。因此，正如我們現在所期望的那樣，每次剪輯的費用接近 300 萬美元。

Your next question comes from Ben Gerlinger with Citi.

您的下一個問題來自花旗銀行的本傑林格 (Ben Gerlinger)。

I was curious, obviously, a big quarter on deposit growth, I think largely due to the specialty rent. I was curious, are you seeing any other deposit trends just outside of that Lunar New Year special? Anything we might see kind of extrapolating what you've seen now into Q2 or possibly the rest of the year?

顯然，我很好奇存款成長的一個大季度，我認為這主要是由於專業租金。我很好奇，除了農曆新年特別優惠之外，您還看到其他存款趨勢嗎？我們可能會看到什麼可以將您現在所看到的情況推斷到第二季或今年剩餘時間？

I think, broadly speaking, we are pleased to see commercial, consumer and our overseas customers all contribute to the growth in the broad spectrum of deposits. From a product side, we saw growth in interest-bearing checking, money market and time deposits.

我認為，從廣義上講，我們很高興看到商業、消費者和海外客戶都為廣泛存款的成長做出了貢獻。從產品方面來看，我們看到生息支票、貨幣市場和定期存款的成長。

So essentially, as long as there's some yields, the customers are willing to reallocate their portfolio and see the balances. Obviously, the downside to that is we saw shrinkage in the noninterest-bearing DDA. And I think that's the fundamental migration that we're all zeroed in on and trying to make sure we understand how that continues to evolve in this higher-for-longer context.

因此，從本質上講，只要有一定的收益率，客戶就願意重新分配他們的投資組合併看到餘額。顯然，這樣做的缺點是我們看到無息 DDA 的萎縮。我認為這是我們都關注的根本性遷移，並試圖確保我們理解它如何在這個更高、更長期的背景下繼續發展。

Got you. That's helpful. And then I know on the guidance, this question is a bit nuanced. So it just picking up loan growth in Q2. And I hate to ask, but is it fair to think that average balance sheet is pretty minimal, and it's more kind of a late June? Or do you think it ramps throughout the entire quarter?

明白你了。這很有幫助。然後我知道在指導上，這個問題有點微妙。因此，第二季貸款成長才剛開始。我不想問，但認為平均資產負債表相當小，而且更像是六月下旬，這樣公平嗎？或者您認為它在整個季度都會持續增長嗎？

We see evidence of positive trends in our pipelines. And so we think we'll see positive trends pick up here in Q2.

我們看到了我們管道中積極趨勢的證據。因此，我們認為我們將在第二季度看到積極的趨勢回升。

Your next question comes from Manan Gosalia with Morgan Stanley.

您的下一個問題來自摩根士丹利的馬南·戈薩利亞。

Can you talk about the drivers for loan growth from here? I know you note that it should pick up in 2Q. And then in your broader macro outlook, you called out a resilient first half, with a softening economy in the second half. Can you talk about why you're expecting the economy to soften in the second half? And if it doesn't, is there some upside to those loan growth numbers?

您能談談貸款成長的驅動因素嗎？我知道您注意到它應該會在第二季回升。然後，在更廣泛的宏觀前景中，您指出上半年經濟有彈性，下半年經濟疲軟。您能談談為什麼預計下半年經濟會疲軟嗎？如果沒有，這些貸款成長數字是否有一些上升空間？

Sure. So I think we're following our cues from the Fed, and the Fed has said that they're proactively trying to engineer a softer landing. And so that seems to be baked into the forward curve. And given that context, that's the environment that we're assuming. The reason we're confident we'll see the loan growth pick up is really driven by our own interactions with our customers and the pipelines that we see.

當然。因此，我認為我們正在遵循聯準會的暗示，而聯準會也表示他們正在積極嘗試實現軟著陸。因此，這似乎已融入遠期曲線中。考慮到這種情況，這就是我們假設的環境。我們之所以有信心看到貸款成長回升，實際上是由我們與客戶的互動以及我們看到的管道所推動的。

So we expect to see C&I growth happen because we have term sheets and conversations that would lead us to expect that those are going to close. We expect to see residential come through because we know those loans are in the pipeline. They're already there, and they're just in the process of moving through too close. And so we'll see residential growth, we'll see C&I growth. And again, we're not focused on CRE growth, but we may see some of that, too.

因此，我們預計 C&I 會成長，因為我們有條款清單和對話，這將使我們預計這些將會結束。我們預計住宅項目能夠獲得批准，因為我們知道這些貸款正在籌備中。他們已經在那裡了，只是距離太近了。因此，我們將看到住宅成長，我們將看到工商業成長。再說一遍，我們並不關注商業房地產的成長，但我們也可能會看到其中的一些成長。

Got it. And maybe a follow-up on the question on criticized assets. I know it's similar to what we've seen at peers. But I guess one point of difference is that you did also have the criticized assets in the CRE book rise, which we haven't seen at many peers. So I was wondering if you can just shed some light overall. Was this a deep dive that you did? How comfortable are you with those credits? And why not move the loan loss reserve up a little bit more given this higher level of criticized assets?

知道了。也許是對受批評資產問題的後續行動。我知道這與我們在同行中看到的類似。但我想有一點不同的是，在CRE帳面上漲中確實也有受到批評的資產，這是我們在許多同行中沒有看到的。所以我想知道你是否可以從整體上闡明一些情況。這是你所做的一次深入研究嗎？您對這些積分感到滿意嗎？鑑於受批評的資產水平較高，為什麼不將貸款損失準備金提高一點呢？

Yes. Great question. So with the criticized assets movement for commercial real estate, I would say it's pretty broad-based. There isn't one sector, industry or geography that we are more concerned about. And maybe more importantly, we do not believe we have concentrations of risk areas we're very concerned with.

是的。很好的問題。因此，對於商業房地產受到批評的資產變動，我想說它的基礎相當廣泛。沒有任何一個部門、產業或地區是我們更關心的。也許更重要的是，我們不認為我們非常關注的風險領域集中。

On the calculation and the allowance calculation, as you know, there are some confines as far as the CECL model. And we've disclosed this in the past as far as the fact that for CECL for us, we use a multi-scenario approach. So I think that gives me comfort as far as -- it's a little bit more heavily weighted to a downside scenario.

在計算和津貼計算方面，如您所知，CECL 模型存在一些限制。我們過去已經揭露過這一點，就我們的 CECL 而言，我們使用多場景方法。所以我認為這讓我感到安慰——它對不利情況的權重更大一些。

With that said, I think with things that are feasible for us with the qualitative and the quantitative reserve, now that's something on the qualitative side, we want to make sure that we continue to add, if appropriate. And that's what you've seen a little bit happen in this quarter.

話雖如此，我認為對於我們在定性和定量儲備方面可行的事情，現在這是定性方面的事情，我們希望確保在適當的情況下繼續添加。這就是您在本季度看到的一些情況。

Next question comes from Brandon King with Truist.

下一個問題來自 Brandon King 和 Truist。

I noticed there was a healthy pickup in loan yields in the quarter. So I was wondering if that's a reasonable pace to expect over the next few quarters and if there's anything to call out there?

我注意到本季貸款收益率出現健康上升。所以我想知道未來幾季的預期速度是否合理，是否有什麼值得指出的？

No. I think, obviously, our residential mortgages are coming on at a higher rate than the portfolio, and that's additive. Broadly speaking, our commercial yields and the new loan volume pricing is roughly in line with where it's been, and there's not a material uptake.

不。從廣義上講，我們的商業收益率和新貸款量定價與以往大致一致，並且沒有實質的吸收。

Okay. And then on the CD, for CDs when you look at your repricing and maturity schedule, at what point are CDs rolling over to maybe a stable rate and maybe when or if that kind of turns into a tailwind maybe in the back half of this year?

好的。然後在 CD 上，對於 CD，當你查看重新定價和到期時間表時，CD 在什麼時候會滾動到穩定的利率，也許何時或是否會在今年下半年變成順風？

Yes. So we'll see $4 billion to $5 billion of CDs roll over each quarter over the next couple of quarters. Obviously, we just put on the $2.5 billion of the Lunar CD special, and that will come off in the third quarter. So the third quarter is the heavy quarter. And that's we're anticipating that there might be some rate movements that happened in the third quarter, and that will play into that.

是的。因此，在接下來的幾個季度中，我們將看到每個季度價值 40 億至 50 億美元的 CD 轉存。顯然，我們剛剛推出了價值 25 億美元的月球 CD 特別版，這將在第三季發行。所以第三季是重磅季。我們預計第三季可能會發生一些利率變動，這將對此產生影響。

Your next question comes from Ebrahim Poonawala with Bank of America.

您的下一個問題來自美國銀行的 Ebrahim Poonawala。

I guess just a follow-up on credit, like on Slide 19, I think where you disclosed 47% of CRE customers have interest derivative contracts, I guess, hedging them against higher rates. Just talk to us in terms of the deep time of the portfolio reviews that you've done if we are in a higher-for-longer over the next 2 years. How much of risk within the CRE book increases as these derivative contracts? I'm assuming at some point roll-off and just how you've assessed that in terms of the potential risk exposure to this book?

我想這只是信貸方面的後續行動，就像幻燈片 19 上的那樣，我認為您披露了 47% 的 CRE 客戶擁有利息衍生性合約，我想是為了對沖更高利率的風險。如果我們在未來兩年內處於較高水平，請與我們談談您所做的投資組合審查的深度。隨著這些衍生性合約的出現，CRE 帳簿中的風險增加了多少？我假設在某個時候會出現下滑，您是如何評估這本書的潛在風險的？

Sure, Ebrahim. So the good news is most of our customers put on swaps to the maturity of their loan. And so there really isn't a significant inter-maturity rate rollover risk on the vast majority of them. So that risk for us is highly contained, and that's by design and the way we market the solution to our customers.

當然，易卜拉欣。因此，好消息是我們的大多數客戶都在貸款到期時進行掉期交易。因此，其中絕大多數確實不存在重大的到期間利率展期風險。因此，我們的風險是高度可控的，這是設計使然，也是我們向客戶推銷解決方案的方式。

We have been steadily growing the fixed rate portfolio, the other side of that chart. And the combination means that as we think about future, we're locking in more and more fixed rate as we move towards the expectation that there might be a downdraft in rates in the future. And the swaps that we put on to hedge our balance sheet have all been fixed forwards and so to the extent that, in 2025, we're staring at inherently a lower rate environment.

我們一直在穩步成長固定利率投資組合，即圖表的另一面。這種結合意味著，當我們考慮未來時，我們將鎖定越來越多的固定利率，因為我們預計未來利率可能會下降。我們為對沖資產負債表而進行的掉期交易都是固定遠期的，因此到 2025 年，我們將面臨本質上較低的利率環境。

And today, we think that combination of factors will all play into our benefits. Our customers who have locked in will be perfectly fine, continue to be perfectly fine through maturity. And our balance sheet, we will be more fixed and receiving more fix in what we expect to be a declining rate outlook, which we think is to our benefit and our shareholders' benefit.

今天，我們認為多種因素的結合都會為我們帶來好處。我們已經鎖定的客戶將非常好，並在成熟後繼續完美。我們的資產負債表將更加固定，並在我們預期的利率下降前景中獲得更多固定，我們認為這對我們和股東的利益都是有利的。

And just give a perspective, Chris, in terms of when these loans are coming up for maturity, what's happening? Are they refying into another sort of fixed rate loan on the balance sheet? Or how many of these are moving out getting refied by insurance companies, et cetera?

克里斯，請給出一個觀點，當這些貸款到期時，會發生什麼？他們是否在資產負債表上轉入另一種固定利率貸款？或者其中有多少人搬出去並獲得保險公司等的擔保？

I think we see the gamut of activity. The good news is there's a high history here of relatively low LTV lending. And so there's plenty of equity for these guys to always find another outlet, if not with back with us.

我認為我們看到了各種活動。好消息是，這裡的貸款貸款成數相對較低，而且歷史悠久。因此，即使不回到我們身邊，這些人也有足夠的機會找到另一個出路。

Your next question comes from Chris McGratty with KBW.

您的下一個問題來自 KBW 的 Chris McGratty。

Great. Chris, going back to the comments on the HQLA. You referenced the -- you're about where you need to be. If you kind of zoom out, is that a comment more about the size of the balance sheet today? Or kind of you think where you need to be for when you cross 100?

偉大的。克里斯，回到對 HQLA 的評論。你提到了——你已經到了你需要去的地方。如果你縮小一點，這是否更多是關於今天資產負債表的規模？或者您認為當您超過 100 歲時需要去哪裡？

No, I'm going to comment on where we are for the current institution. Keep in mind, we're only 70. It's a pretty long way from 100.

不，我要評論一下我們目前機構的狀況。請記住，我們只有 70 歲。

No, I get it. Okay. But in terms of, I guess, asking the capital question a little bit differently. You commented about buybacks. But should we be thinking about perhaps more liquidity, but at a lower NIM producing higher NII is kind of a dynamic of what you're doing to the balance sheet right now?

不，我明白了。好的。但我想，就資本問題而言，提出的問題有點不同。您評論了回購。但我們是否應該考慮增加流動性，但在較低的淨利差（NIM）下產生較高的淨投資指數（NII）是您現在對資產負債表所做的一種動態？

Probably the implication of what we did in the first quarter, for sure, and that will play itself out. But we're optimistic that we'll see loan growth pick up in the second quarter and continue to drive towards the loan guidance that we've laid out, and we think that will contribute to, again, helping the NIM bounce back later in the year while still growing NII.

當然，這可能是我們在第一季所做的事情的影響，這將會自然顯現。但我們樂觀地認為，我們將看到第二季貸款成長回升，並繼續推動我們制定的貸款指導方針，我們認為這將再次有助於幫助淨利差在稍後反彈。增長。

(Operator Instructions) Your next question comes from Samuel Varga with UBS.

（操作員說明）您的下一個問題來自 UBS 的 Samuel Varga。

I just wanted to follow up on the loan growth funding question, I guess, understanding the sort of backdrop of the HQLA build. How much of a willingness do you have to actually use some of the cash to fund the loan growth?

我想，我只是想跟進貸款成長融資問題，以了解 HQLA 建設的背景。您有多少意願實際使用部分現金來為貸款成長提供資金？

Sure. So the investment portfolio will throw off $450 million per quarter of net proceeds. And so we think that is part of how we could fund some of the growth as we look forward.

當然。因此，投資組合每季將損失 4.5 億美元的淨收益。因此，我們認為這是我們為未來的部分成長提供資金的一部分。

Okay. And then in terms of just the trade-off between putting on the CDs at very competitive rates versus FHLB, is that going to be a simple always CD preference? Or how do you think about that sort of funding mix?

好的。然後，就以極具競爭力的價格與 FHLB 投放 CD 之間的權衡而言，這是否會是一個簡單的始終 CD 偏好？或者您如何看待這種融資組合？

Yes. Look, I think we obviously know the FHLB is there for us. We clearly would rather pay at the margin, our customers, a better rate than borrow from a wholesale institution. And we think that is both a better economic outcome and a better outcome for the franchise and the value that we create for our customers. So there is a preference there, but I think we will look to optimize our cost of funding in the ordinary course and do incrementally the right thing as we move forward.

是的。看，我想我們顯然知道 FHLB 就在我們身邊。顯然，我們寧願向客戶支付比從批發機構借款更好的利率的保證金。我們認為這既是更好的經濟成果，也是特許經營和我們為客戶創造的價值的更好成果。因此，這是有偏好的，但我認為我們將在正常過程中優化我們的融資成本，並隨著我們的前進逐步做正確的事情。

And maybe just I'll add one thing. The [floor] we put on is variable rate. So that also was a part of the analysis for us.

也許我會補充一件事。我們的[地板]是可變利率的。所以這也是我們分析的一部分。

Your next question is a follow-up question from Ebrahim Poonawala with Bank of America.

您的下一個問題是美國銀行 Ebrahim Poonawala 提出的後續問題。

Again...

再次...

We cannot hear you.

我們聽不到你的聲音。

Can you hear me now?

你聽得到我嗎？

We can hear you now. Go ahead.

我們現在可以聽到你的聲音了。前進。

Yes. Just wanted to understand, given East West's capital positioning, the market disruption, just talk to us in terms of investment and banker hiring. Like how fertile is it to attract talent and maybe move market share in a world where overall growth may be slow?

是的。只是想了解一下，考慮到東西方的資本定位、市場混亂，請與我們談談投資和銀行家招聘方面的問題。例如，在整體成長可能緩慢的世界中，吸引人才並轉移市場份額的潛力有多大？

The question on investment in talent. Yes. I think that we will -- we're always on the lookout, in fact, for new talent to join the organization. And frankly, with what happened 12 months ago, there's a lot of disruption in the market. And so we do feel that there are plenty of talents out there in the market that are possibly looking for new homes.

關於人才投資的問題。是的。我認為我們會——事實上，我們一直在尋找新人才加入組織。坦白說，從 12 個月前發生的事情來看，市場出現了許多混亂。因此，我們確實認為市場上有許多人才可能正在尋找新家。

But we've been very, very selective because it's not every banker that fit into the East West Bank culture. It's not every banker that actually like to do the things that we do. And oftentimes, if you look at it is that there are a lot of banks out there that have bankers that have habitually do much bigger loans, and that doesn't fit into our diversification strategy.

但我們一直非常非常挑剔，因為並不是每個銀行家都適合華美銀行的文化。並不是每個銀行家都真正喜歡做我們所做的事情。通常情況下，如果你觀察一下，你會發現很多銀行的銀行家習慣性地發放更大的貸款，這不符合我們的多元化策略。

And so we are going to continue to be very selective and choosy in terms of making sure we find the right fit. And when we do finalize it, we absolutely -- we'll be delighted to welcome them to be part of the East West Bank family.

因此，我們將繼續非常挑剔，以確保找到合適的人選。當我們最終確定後，我們絕對會很高興地歡迎他們成為華美銀行大家庭的一員。

And this is something that we're not going to be rushing to it. And I do notice that there are other banks who may be all looking into getting a big group of talent from specific bank that are having some turmoil. We don't necessarily feel that, that is going to be actually an attractive strategy for East West Bank. We have been able to grow organically pretty nicely for the last almost 10 years now.

我們不會急於做這件事。我確實注意到，還有其他銀行可能正在考慮從遇到一些混亂的特定銀行招募大量人才。我們不一定認為這對華美銀行來說實際上是一個有吸引力的策略。過去近十年來，我們一直能夠很好地實現有機成長。

So we have not made an acquisition since January of 2014. And even that was a very small acquisition. So most of our growth for the last 10 years and spend through organic direction. So we like that approach, and we think that bringing the right talents, understanding the East West specific value proposition and understand that the importance of a balance between risk management and also growth, and those are the people that fit into us well, and then we will continue to identify these type of talents and bring them on.

所以自 2014 年 1 月以來我們就沒有進行過收購。因此，過去 10 年我們的大部分成長和支出都是透過有機方向進行的。因此，我們喜歡這種方法，我們認為引進合適的人才，了解東西方的具體價值主張，並了解風險管理和成長之間平衡的重要性，而這些人非常適合我們，然後我們將繼續發掘並培養此類人才。

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

我們的問答環節到此結束。我想在會議結束時致閉幕詞。

Well, again, thank you for joining our earnings call today, and we're looking forward to speaking to you in July.

再次感謝您參加我們今天的財報電話會議，我們期待在 7 月與您交談。

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。您現在可以斷開連線。