East West Bancorp Inc (EWBC) 2024 Q2 法說會逐字稿

Good day and welcome to the East West Bancorp's second quarter 2024 earnings call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加 East West Bancorp 2024 年第二季財報電話會議。（操作員指示）請注意，此事件正在記錄中。

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

現在，我想將會議交給投資者關係總監 Adrienne Atkinson。請繼續。

Thank you, operator. Good afternoon, and thank you, everyone, for joining us to review East West Bancorp second 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. This call is being recorded and will be available for replay on our Investor Relations website.

謝謝您，接線生。下午好，感謝大家與我們一起回顧 East West Bancorp 2024 年第二季的財務表現。和我一起的是董事長兼執行長 Dominic Ng；克里斯多福‧德爾‧莫拉爾-尼爾斯 (Christopher Del Moral-Niles)，財務長；以及首席風險長 Irene Oh。本次通話正在錄音，並將在我們的投資者關係網站上重播。

Slide deck reference during this call is available on our Investor Relations site. Management may make projections or other forward-looking statements, which may differ materially from the actual results due to a number of risks and uncertainties. Management may discuss non-GAAP financial measures.

本次電話會議中的幻燈片參考可在我們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，由於多種風險和不確定因素，這些預測或其他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。

For a more detailed description of the risk factors and a 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. I will now turn the call over to Dominic.

有關風險因素的更詳細描述以及 GAAP 與非 GAAP 財務指標的對照表，請參閱我們提交給美國證券交易委員會的文件，包括今天提交的 8-K 表。現在我將把電話轉給多明尼克。

Thank you, Adrienne. Good afternoon, and thank you for joining us for our second quarter earnings call. I'm pleased to report that the strength of East West diversified business model have continue to deliver for our shareholders in the second quarter.

謝謝你，艾德麗安。下午好，感謝您參加我們的第二季財報電話會議。我很高興地報告，東西方多元化商業模式的實力在第二季度繼續為我們的股東帶來收益。

Second quarter 2024 net income was $288 million or $2.6 per diluted share. We grew end of period loans and deposits in a balanced way, growing each by 2%. Loans grew in line with our expectation driven by C&I and residential mortgage. Deposits grew across commercial and customer groups marking the fourth consecutive quarter of customer deposit growth exceeding $1 billion.

2024 年第二季淨收入為 2.88 億美元，即每股攤薄收入 2.6 美元。我們均衡地成長期末貸款和存款，分別成長2%。在商業和工業以及住宅抵押貸款的推動下，貸款成長符合我們的預期。商業和客戶群的存款均有所增長，標誌著客戶存款成長連續第四個季度超過 10 億美元。

Our balance sheet growth was complemented by record quarterly fee income of $77 million, up 8% quarter-over-quarter as we have focused on growing our fee business. This growth was driven by notable continued strength in foreign exchange income and wealth management fees.

由於我們專注於發展費用業務，我們的資產負債表增長與創紀錄的 7,700 萬美元的季度費用收入相得益彰，環比增長 8%。這一增長主要得益於外匯收入和財富管理費的持續強勁增長。

Second quarter annualized net charge-offs remained stable at $23 million. Our nonperforming asset ratio was 27 basis points at quarter end, among the lowest when compared to our peers. And our criticized loans decreased 10%. We are confident that our disciplined underwriting and monitoring standards will serve us well through the cycle, and we remain proactive in managing our credit risk.

第二季年度淨沖銷額保持穩定，為 2,300 萬美元。本季末，我們的不良資產率為 27 個基點，與同業相比處於最低水準。我們受到批評的貸款減少了10%。我們相信，我們嚴格的承保和監控標準將在整個週期內為我們提供良好的服務，並且我們將繼續積極主動地管理我們的信用風險。

Overall, our asset quality remained strong. We deliver top-tier value for our shareholders in the second quarter, generating a 1.6% return on average assets and a 17.5% return on tangible common equity in the second quarter.

整體而言，我們的資產品質依然強勁。我們在第二季為股東提供了頂級價值，第二季平均資產回報率為 1.6%，有形普通股回報率為 17.5%。

Tangible book value per share also grew by 3% quarter-over-quarter and 15% year-over-year. And lastly, I'm pleased to announce that East West Bank has once again been selected by Bank Director magazine as the number one performing bank above $50 billion in assets.

每股有形帳面價值也比上一季成長了 3%，比去年同期成長了 15%。最後，我很高興地宣布，華美銀行再次被《銀行董事》雜誌評選為資產超過 500 億美元且表現最佳的銀行。

This is the second consecutive year we have earned the top spot and is our third title in the past four years. This achievement is a testament to the steady execution of our associates and demonstrates our resilience in what proved to be a challenging year for the banking sector.

這是我們連續第二年奪得榜首，也是我們四年來的第三個冠軍。這項成就證明了我們員工的穩健執行力，並表明了我們在銀行業充滿挑戰的一年中的韌性。

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

現在我將把電話轉給克里斯，以提供有關我們第二季度財務業績的更多詳細資訊。克里斯？

Thank you, Dominic. Turning to loans on slide 4. End-of-period loans grew 2% quarter-over-quarter with overall growth in line with our expectations. C&I growth was driven by notable increases in entertainment lending and overall C&I utilization levels.

謝謝你，多米尼克。轉到幻燈片 4 上的貸款。期末貸款較上季成長 2%，整體成長符合我們的預期。工商業成長主要得益於娛樂貸款和整體工商業利用率的顯著提高。

However, our growth came very late in the second quarter. We expect C&I to continue to grow over the back half of the year, but likely at a more moderate pace. Residential mortgage (technical difficulty) was consistent and our pipeline levels remain strong going into Q3. We expect residential mortgage will continue to be a growth driver at present levels.

然而，我們的成長在第二季來得很晚。我們預計，今年下半年工商企業將持續成長，但成長速度可能會較為溫和。住宅抵押貸款（技術難度）保持穩定，進入第三季度，我們的管道水平仍然強勁。我們預計，住宅抵押貸款在現有水平上將繼續成為成長動力。

In commercial real estate, we saw healthy growth in multifamily in Q2, offset by declines in the remainder of the CRE portfolio. We are continuing to work with our long-standing clients, but foresee very modest CRE loan growth for us for the balance of 2024.

在商業房地產方面，我們看到第二季多戶型住宅的健康成長，但其餘商業房地產投資組合的下滑抵消了這一增長。我們將繼續與長期客戶合作，但預計 2024 年餘下時間我們的 CRE 貸款成長將非常溫和。

Moving on to deposits on slide 5. We grew end-of-period deposits by 2% to a new record level of $60 billion, with growth coming across all of our customer groups. Q2 marks the fourth consecutive quarter of $1 billion-plus customer growth, reflecting our focus on full relationships. Notably, our end-of-period non-interest bearing deposit mix remained stable at 25%.

前往投影片 5 上的存款。我們的期末存款成長了 2%，達到了 600 億美元的新紀錄，所有客戶群都實現了成長。第二季是客戶成長額連續第四個季度超過 10 億美元，反映了我們對全面關係的關注。值得注意的是，我們期末無利息存款結構維持穩定在 25%。

Switching to margin. slide 6 covers our margin and net interest income trends. Second quarter dollar net interest income totaled $553 million, while our net interest margin was 3.27%. As expected, NIM compression for the quarter reflected higher overall the deposit and funding costs, partially offset by improving mostly fixed rate asset yields.

切換到保證金。幻燈片 6 涵蓋了我們的利潤和淨利息收入趨勢。第二季的美元淨利息收入總計 5.53 億美元，而我們的淨利差為 3.27%。如預期，本季淨利差壓縮反映出整體存款和融資成本上升，但被大部分固定利率資產收益率的提高部分抵銷。

As we move through the second half of the year, we expect NIM to grind marginally lower before bottoming out. Nonetheless, increasing asset growth is expected to drive growing dollar NII through the back half of the year.

隨著今年下半年的到來，我們預計 NIM 將略有下降，然後觸底。儘管如此，預計資產成長將在今年下半年推動美元NII的成長。

Slide 7 summarizes our non-interest income trends. We achieved a record level of fee income, $77 million this quarter, up $6 million or 8% from the prior quarters, with growth in every fee category. I think that says a lot.

投影片 7 總結了我們的非利息收入趨勢。我們的費用收入達到了創紀錄的水平，本季達到 7,700 萬美元，比前幾個季度增加了 600 萬美元，增幅為 8%，每個費用類別都有所增長。我認為這說明了很多問題。

With that, let me turn the call over to Irene.

說完這些，讓我把電話轉給艾琳。

Thank you, Chris, and good afternoon to all on the call. On slide 8, credit trends remain stable and the asset quality of our portfolio remains strong. As Dominic mentioned earlier, we reported net charge-offs in the second quarter of $23 million or 18 basis points annualized compared to $23 million or 17 basis points annualized in the first quarter of 2024.

謝謝你，克里斯，祝大家下午好。在投影片 8 中，信貸趨勢保持穩定，我們投資組合的資產品質依然強勁。正如 Dominic 先前提到的，我們報告第二季的淨沖銷額為 2,300 萬美元，即年化 18 個基點，而 2024 年第一季的淨沖銷額為 2,300 萬美元，即年化 17 個基點。

Quarter over quarter, non-performing assets rose by 4 basis points to 27 basis points of total assets, primarily due to increases from C&I loans and commercial real estate loans we have for closed on. Nonetheless, the absolute level of non-accrual loans and nonperforming assets remains relatively low and at manageable levels.

與上一季相比，不良資產增加​​了 4 個基點，至總資產的 27 個基點，這主要是由於我們已結清的工商貸款和商業房地產貸款增加。儘管如此，不良貸款和不良資產的絕對水平仍然相對較低且處於可控水平。

Criticized loans decreased during the quarter by 10%, driven by decreases in both special mention and substandard loans. The special mention loan ratio decreased 22 basis points quarter-over-quarter to 0.83% of loans and the classified loans ratios decreased 3 basis points to 1.22%. We reported higher provision for credit losses of $37 million in the second quarter compared with $25 million for the first quarter.

本季度，受批評貸款減少了 10%，主要是由於關注貸款和次級貸款減少。關注貸款比率較上季下降 22 個基點至 0.83%，特定分類貸款比率較上季下降 3 個基點至 1.22%。我們報告稱，第二季的信貸損失準備金為 3,700 萬美元，高於第一季的 2,500 萬美元。

With regards to commercial real estate loan maturities, as of June 30, 2024, 5% of outstanding balances are scheduled to mature and by the end of 2024 and 10% of outstanding balances will mature in 2025. For office loan, specifically, 8% of outstanding balances will mature in 2024 and 16% will mature in 2025.

就商業房地產貸款到期日而言，截至 2024 年 6 月 30 日，5% 的未償還餘額將於 2024 年底到期，10% 的未償還餘額將於 2025 年到期。具體來說，對於辦公室貸款，8%的未償還餘額將於 2024 年到期，16% 將於 2025 年到期。

We remain vigilant and proactive in managing our credit risk. Based on what we know today, we continue to expect quarterly net charge-offs to be in the range of 15 to 25 basis points for the foreseeable future.

我們始終保持警惕並積極主動地管理我們的信用風險。根據我們今天掌握的信息，我們預計在可預見的未來季度淨沖銷額將在 15 至 25 個基點之間。

Turning to slide 9. The total allowance for loan losses increased $14 million quarter-over-quarter, driven by the expected economic outlook and also loan growth during the quarter, resulting in allowance for loan losses coverage ratio of [1.30%].

翻到第 9 張投影片。貸款損失準備金總額環比增加 1,400 萬美元，主要得益於預期的經濟前景以及本季的貸款成長，導致貸款損失準備金覆蓋率為[1.30%]。

Within commercial real estate, we increased the reserve for office loans by $7 million, bringing the total coverage ratio to 3.10% of office loans. We believe our loan portfolio is appropriately reserved as of June 30, 2024.

在商業房地產領域，我們將辦公室貸款準備金增加了 700 萬美元，使總覆蓋率達到辦公室貸款的 3.10%。我們相信，截至 2024 年 6 月 30 日，我們的貸款組合已適當保留。

Turning to slide 10. All of the East West regulatory capital ratios remain well in excess of regulatory requirements for well-capitalized institutions and well above regional bank averages. East West Common Equity Tier 1 capital ratio stands at a robust 13.7%, while our tangible common equity ratio is at 9.4%.

翻到第 10 張投影片。所有東西方監理資本比率仍遠高於資本充足機構的監理要求，並遠高於地區銀行平均。東西方普通股一級資本比率高達 13.7%，而我們有形的普通股比率為 9.4%。

These capital ratios place us among the most well-capitalized banks in the industry. East West repurchased 560,000 shares of common stock during the second quarter for approximately $41 million at an average price under $73 a share. We currently have $49 million of repurchase authorization that remains available for future buybacks. East West third quarter of 2024 dividend will be payable on August 16, 2024, to stockholders of record on August 2.

這些資本比率使我們成為業界資本最充足的銀行之一。East West 在第二季以平均每股不到 73 美元的價格回購了 56 萬股普通股，回購金額約為 4,100 萬美元。我們目前擁有 4,900 萬美元的回購授權，可供未來回購。East West 2024 年第三季的股利將於 2024 年 8 月 16 日支付給 8 月 2 日登記在冊的股東。

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

現在我將話題轉回給克里斯，讓他分享我們對 2024 年全年的展望。克里斯？

Thank you, Irene. Our full year outlook remains largely unchanged from the first quarter. We are still assuming the forward curve as of this quarter end in a currently expect that first rate cut in September.

謝謝你，艾琳。我們對全年的展望與第一季相比基本保持不變。我們仍假設本季末的遠期曲線目前預計9月將首次降息。

We continue to expect full year end-of-period loan growth in the range of 3% to 5%. We expect full year net interest income to decline in the range of 2% to 4%. We also continue to expect adjusted noninterest expense to increase in the range of 6% to 8%.

我們繼續預計全年期末貸款成長率將在 3% 至 5% 之間。我們預計全年淨利息收入將下降2%至4%。我們也繼續預計調整後的非利息支出將增加 6% 至 8%。

Regarding tax items, we now expect for the effective tax rate to be lower in the range of 21% to 23% versus the prior range of 23% to 24%. We also now expect full year tax credit amortization expense to be within the range of $60 million to $65 million.

至於稅項，我們目前預計有效稅率將在 21% 至 23% 之間，而先前的區間為 23% 至 24%。我們現在也預計全年稅收抵免攤銷費用將在 6,000 萬美元至 6,500 萬美元之間。

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

現在，我將開始提問。操作員？

(Operator Instructions) Dave Rochester, Compass Point.

（操作員指示）戴夫·羅徹斯特（Dave Rochester），Compass Point。

I wanted to start on fee income. You guys had highlighted this earlier. You had a solid quarter there with some pretty broad-based growth. So I was hoping you can talk about what you are expecting for that trajectory in the back half or what you're thinking for the full year in terms of growth overall?

我想從費用收入開始。你們之前已經強調過這一點了。你們本季表現穩健，實現了相當廣泛的成長。所以我希望您能談談您對下半年的發展軌蹟的預期，或者您對全年的整體成長有何看法？

Sure. So we've had about 10% full year year-over-year growth through the midpoint. I think about the core drivers of that, obviously, deposit account fees are the biggest component and that's also been growing at that same pace, and it's been growing, call it in the range of $1 million a quarter.

當然。因此，截至目前，我們全年的年成長率約為 10%。我認為其中的核心驅動因素顯然是存款帳戶費用是最大的組成部分，而且也一直以同樣的速度成長，每季的成長速度約為 100 萬美元。

I don't know if that will continue in a declining rate environment immediately, but it should bode well going for another quarter or so. Lending fees are a function of lending growth. I think we commented that we expect lending to moderate over the back half of the year. So I would expect that the case, and derivatives goes along with lending to a certain extent.

我不知道在利率下降的環境下這種情況是否會立即持續下去，但這應該預示著未來一個季度左右情況會很好。貸款費用與貸款成長有關。我認為我們曾評論說，預計今年下半年貸款將會放緩。因此我預計這種情況以及衍生性商品在一定程度上與貸款一致。

FX has been a wonderful piece of our business, that's contributed greatly this quarter. It does have some volatility in the wealth management fees, which have grown very nicely, have obviously been benefiting from the backdrop of positive overall equity markets and a strong fixed income yield opportunity. Again, that will probably moderate to some extent as we look over the back half of the year.

外匯是我們業務中非常重要的一部分，對本季做出了巨大貢獻。財富管理費確實存在一些波動，但成長非常好，顯然受益於整體股市積極和強勁的固定收益收益機會的背景。再者，當我們展望今年下半年時，情況可能會有所緩和。

Okay. So all in maybe a little bit of moderation, but looking for decent growth there, it sounds like.

好的。因此，一切可能都需要稍微適度，但聽起來，我們正在尋求體面的成長。

It's a core focus of us to drive overall fee income levels higher overtime.

我們的核心關注點是隨著時間的推移提高整體費用收入水準。

Okay. Maybe I appreciate that. Maybe as my follow-up on capital last quarter, I know you were talking about a target TCE ratio range around where it is right now [9394]. Any changes to that -- thinking on that? And should we expect a range for at least the back half of the year?

好的。也許我很欣賞這一點。也許作為我上個季度關於資本的後續問題，我知道你在談論目前的目標 TCE 比率範圍[9394]。對此有什麼改變嗎 — — 對此有什麼看法？我們是否應該預期至少今年下半年會出現這樣的變化？

We continue to believe it's not in our shareholders' interest for us. We have the additional capital beyond the levels. Obviously, it will bounce around a few basis points, but we're trying to be thoughtful about managing that in the best interest of returns

我們仍然相信這不符合我們股東的利益。我們擁有超出層級的額外資本。顯然，它會在幾個基點左右波動，但我們正在努力謹慎地管理它，以獲得最佳回報

Jared Shaw, Barclays Capital.

巴克萊資本的賈里德·肖 (Jared Shaw)。

Hi, good afternoon.

嗨，下午好。

Good afternoon, Jared.

下午好，賈里德。

Maybe just looking -- starting with margin and taking into account the strong growth that you just pointed out in C&I at the end of the quarter as well as maybe some of the dynamics around potentially getting to the end of a deposit remix pressure. How should we be thinking about margin over the next few quarters with that backdrop?

也許只是看看——從利潤率開始，並考慮到您剛才指出的本季度末 C&I 的強勁增長，以及可能結束存款混合壓力的一些動態。在這樣的背景下，我們該如何考慮未來幾季的利潤率？

Yeah. We still expect margin to have some downward compression over the back half of the year, not sure of the trough will come in Q3 or Q4, but we think it does trough later this year. That having been said, well, we think margin will come down a bit. We do see dollar NII growing precisely because the balances grew here in the second quarter and we still see incremental growth, although at a more moderate pace in the third and fourth quarters.

是的。我們仍然預期利潤率在今年下半年會有所下降，不確定低谷會出現在第三季還是第四季度，但我們認為它確實會在今年稍後出現低谷。話雖如此，我們認為利潤率會略有下降。我們確實看到美元NII正在成長，正是因為第二季的餘額有所成長，而且我們仍然看到增量成長，儘管第三季和第四季的成長速度較為溫和。

So balance sheet growth will keep the NII moving higher, NIM will still see come compression, and we expect it to trough as we get later in the year.

因此，資產負債表成長將使 NII 保持走高，NIM 仍將受到壓縮，我們預計它將在今年稍後觸底。

Okay. And is that margin compression I guess, coming more from just some tail on funding costs or are you not getting the -- maybe the same spreads on the incremental C&I loan, as you have in maybe the existing portfolio.

好的。我猜利潤率壓縮是否更多的是由於融資成本的尾部增加，或者您是否沒有獲得 - 也許增量 C&I 貸款的利差與現有投資組合中的利差相同。

I think we expect some downward compression on fixed rate assets as the expectation for Fed cut comes into play. And so, the higher yields, for example, that we've been earning here more recently on mortgages will start to come down and some other fixed rate options as well as fixed investments. Those will put incremental downward pressure on the fixed rate asset repricing.

我認為，隨著聯準會降息預期發揮作用，我們預期固定利率資產將受到一些下行壓力。因此，例如我們最近在抵押貸款上獲得的較高收益率將開始下降，其他一些固定利率選擇以及固定投資的收益率也將開始下降。這些將對固定利率資產重新定價造成持續的下行壓力。

At the same time, we don't think the Fed cut, which probably won't come until mid-September will do much to damp in the near-term deposit costing that we have the rollover here in the third quarter.

同時，我們認為聯準會降息可能要到 9 月中旬才會到來，但這不會對第三季的短期存款成本造成太大影響。

So you'll recall we had a fairly significant first quarter Lunar New Year City campaign. We're out there today growing deposits and managing that, but it's not at a 25 basis points or 30 basis points lower level because rates haven't really moved up or down.

您會記得，我們​​在第一季舉辦了一場相當重要的農曆新年城市活動。我們今天正在增加存款並進行管理，但存款水準並沒有降低 25 個基點或 30 個基點，因為利率實際上並沒有上升或下降。

Okay, great. Thanks. And then maybe as my follow-up, just on credit, any color around the dynamic with C&I NPL is up, but the criticized down, any broader trends there or those more one-off?

好的，太好了。謝謝。然後也許作為我的後續問題，僅在信貸方面，C&I NPL 的動態是否有所上升，但受到的批評是否下降，是否存在更廣泛的趨勢或更具一次性的趨勢？

Yeah. I would say, I mean, obviously at those levels, they are at very low bases. So there are loans that we're looking and borrowers that we're looking at carefully for C&I. And then also, CRE as well. But there is nothing I would say that systemic at this point industry concentrations, regions or anything overly concerned about.

是的。我想說，我的意思是，顯然在那些水平上，它們的基礎非常低。因此，我們正在為 C&I 仔細尋找貸款並仔細尋找借款人。然後還有 CRE。但我目前認為，系統性的產業集中度、區域性或任何過度擔心的問題都不是必要的。

Casey Haire, Jefferies.

凱西‧海爾 (Casey Haire)，傑富瑞 (Jefferies)。

Great. Thanks. Good afternoon, everyone. I have a follow up on the NIM. So if we do get this trough in the back half of the year, like what is the expectation if the forward curve plays out as is -- is it is NIM stability with CD repricing benefits and maturing hedges offsetting the pressure you feel on the floating rate loan book. Just a little color on what happens post second half here.

偉大的。謝謝。大家下午好。我對 NIM 進行了跟進。因此，如果我們確實在下半年觸及這個低谷，那麼如果遠期曲線按照原樣呈現，那麼預期會怎樣呢？ 即 NIM 是否穩定，CD 重新定價收益和到期對沖是否會抵消浮動利率貸款賬簿上的壓力。只是對下半場之後發生的事情做了一些說明。

Yeah. The order of magnitude, I think we've said for every 25 basis points rate cut, we would assume there would be something in the neighborhood of $2 million to maybe $3 million of downward pressure from the rate cuts. But we've also said we expect about a 50% deposit beta baked into those numbers. So I think those are two things that are in play in our forward look.

是的。至於數量級，我想我們已經說過，每降息 25 個基點，我們就會認為降息將帶來大約 200 萬至 300 萬美元的下行壓力。但我們也表示，我們預計這些數字中將包含約 50% 的存款測試版。所以我認為這是我們未來展望中要考慮的兩件事。

With both of those assumptions baked in, given the growth that we see ahead of us, we think the answer is rising dollar NII fairly consistently third quarter and the fourth and margin coming down again modestly from current levels down into a slightly lower [3.20%] range and then finding its footing and we assume moving higher, particularly as a number of negative cash flow hedges that currently weigh on us come off in the first quarter of '25.

考慮到上述兩個假設，考慮到我們未來的成長前景，我們認為答案是美元 NII 在第三季度和第四季度持續上升，利潤率從當前水準再次小幅下降至略低的 [3.20%] 區間，然後站穩腳跟，我們預計會進一步走高，特別是因為目前對我們造成壓力的許多負現金流對在 25 年沖在 25 年沖在第一季。

Got you. Okay. And then just the loan growth outlook, it sounds like you guys. I mean, obviously the CRE you guys are holding the line on that near term and enjoying the C&I resi growth. But it sounds as if you are looking to open that up or get reengagement and commercial real estate and '25, unless I'm misreading that. But just wondering where, CRE concentration, what's the strategy there? Like when can you turn that back on? Is there certain level?

明白了。好的。然後只是貸款成長前景，聽起來就像你們一樣。我的意思是，顯然你們的 CRE 在短期內保持了領先地位，並享受著 C&I 房地產的成長。但聽起來好像你正在尋求開放它或重新參與和商業房地產和'25，除非我誤解了。但只是想知道，CRE 集中在哪裡，那裡的策略是什麼？例如什麼時候可以重新打開它？有一定的水平嗎？

Well, to be clear, we're always here for our core customers, and we are always engaged to support them. We just haven't been pursuing marginal new transactions. And so we will continue to engage with our core customers and service our portfolios and help them with whatever comes their way.

嗯，要明確的是，我們始終為我們的核心客戶服務，我們始終致力於為他們提供支援。我們只是沒有追求邊際新交易。因此，我們將繼續與我們的核心客戶合作並服務我們的投資組合併幫助他們解決遇到的任何問題。

With regard to the over arching loan strategy, I think Dominic has articulated a long-term plan to get to a third, a third, a third. And that will involve us growing our C&I and residential portfolios over time at a faster clip than CRE.

至於整體貸款策略，我認為多明尼克已經闡明了實現三分之一、三分之一、三分之一的長期計劃。這將使我們隨著時間的推移，以比 CRE 更快的速度擴大我們的 C&I 和住宅投資組合。

I just want to add one comment here is that -- we -- it's not like that we are looking for marginal business in the past and now we're not. It's really coming back to the issue is that our core customers. Don't worry you see a lot of very interesting activity for them to engage in. So our volume on CRE have dropped a lot has -- no this is simply because of the fact that they're just not a lot of great deals out there. So we expect CRE activities will probably continue to slow simply because that then the external environment factor.

我只想在這裡補充一點，我們過去並不是在尋找邊際業務，現在我們不再尋找了。問題實際上又回到了我們的核心客戶身上。別擔心，你會看到他們參與了很多非常有趣的活動。因此，我們的 CRE 交易量下降了很多 — — 這只是因為市場上沒有太多好的交易。因此，我們預計 CRE 活動可能會繼續放緩，只是因為外部環境因素。

And so our position is that we always have the capital and the balance sheet to support our core customers in any kind of economic environment. But for them to be our core customers that worthy of support, they obviously are the people that are very savvy and know what they're doing. And so they wouldn't be foolishly getting involved in transaction that don't make sense .

因此，我們的立場是，我們始終擁有資本和資產負債表，可以在任何經濟環境下支持我們的核心客戶。但對於我們值得支持的核心客戶來說，他們顯然是非常精明並且知道自己在做什麼的人。這樣他們就不會愚蠢地參與毫無意義的交易。

So that's why the volume of from CNI to CRE, et cetera, very much tied into to a certain extent interest rate environment and also the economic circumstances. And so that's how we see utilization and CNI also for relatively low for the last couple of years, simply because ForEx kind of interest rate is high for people to drawdown because the cost of borrowing is so much higher.

因此，CNI 到 CRE 等的交易量在一定程度上與利率環境和經濟狀況密切相關。因此，我們看到過去幾年利用率和 CNI 也相對較低，這僅僅是因為 ForEx 的利率對於人們的提取來說太高了，因為借貸成本太高了。

So all-in-all, I think that -- that's the beauty of having strong capital and strong balance sheet and be in a position to always take good care of our customers. These good customers in turn will continue to take care of us.

總而言之，我認為，擁有雄厚的資本和強勁的資產負債表並始終能夠很好地照顧我們的客戶就是美妙之處。這些好客戶反過來也會繼續照顧我們。

Ebrahim Poonawala, Bank of America.

美國銀行的 Ebrahim Poonawala。

Good afternoon. I guess maybe first first one, just click on slide 22. So we saw some mix shift from cash into securities during the quarter. Is that kind of steady-state? Just remind us one, when we think about securities to earning assets, are we where we want to be? And then in terms of the level of cash you want to be holding if the $4 billion relative to the $16 billion the right level to think about?

午安.我想也許第一個，只需單擊幻燈片 22。因此，我們看到本季一些資產組合從現金轉向證券。那是那種穩定狀態嗎？只要提醒我們一點，當我們考慮將證券轉化為獲利資產時，我們是否達到了我們想要的目標？那麼就您想要持有的現金水平而言，40 億美元相對於 160 億美元是否是合適的水平？

Yeah. And I think we said last quarter, we thought the overall cash and securities and we kind of look at that as one basket would stay relatively stable, relative to the total balance sheet. I think that certainly happened on an average basis.

是的。我認為我們上個季度就說過，我們認為整體現金和證券（我們將其視為一個籃子）相對於整個資產負債表而言將保持相對穩定。我認為這種情況確實是平均發生的情況。

The amount that can be invested, I think from a variety of factors probably doesn't come down a lot of the $4 billion in cash component, but could come down a little bit more. We certainly have the bandwidth and flexibility to do that, but we're not pushing that were. Again, our focus is on core customer activity, core loan growth, core deposit growth, and I think that will ship most of the change in the balance sheet over the back half of the year.

我認為，從多種因素考慮，可供投資的金額可能不會減少 40 億美元現金部分的大部分，但可能會減少更多。我們當然有足夠的頻寬和靈活性來做到這一點，但我們不會強行做到這一點。再次強調，我們的重點是核心客戶活動、核心貸款成長、核心存款成長，我認為這將在下半年帶來資產負債表的大部分變化。

Got it. And I guess this the other one, maybe, Dominic, for you. Just sentiment among your commercial customers as we think about maybe getting a September rate card, you're going to get to the elections, do you see those being as a trigger where we could see an acceleration in loan growth and loan demand? Like do you feel there is some pent-up demand that could lead to a rebound in loan growth looking into 2025? Is the beginning of the rate cut cycle in elections enough to do that?

知道了。我想，這也許是另一個，多明尼克，適合你。當我們考慮可能獲得九月利率表時，您的商業客戶中的情緒，您將要參加選舉，您是否認為這些將成為我們可以看到貸款成長和貸款需求加速的觸發因素？例如，您是否覺得存在一些被壓抑的需求，可能導致 2025 年貸款成長反彈？選舉期間降息週期的開始足以實現這一目標嗎？

Well, based on the current expectation on the rate cuts, I wouldn't think that the rate cut will be like a significant enough that can really move that much of a needle. The fact is 25 basis points cut here and there. I mean, if we -- even if we do a two to three times is less than 1%. And when we're sitting at 5.5% Fed fund rate, I don't think that's material enough to really drive a lot of thought excitement in terms of making investment and whatnot.

嗯，根據目前對降息的預期，我認為降息幅度不會太大，不會產生太大的影響。事實是，這裡或那裡已經降息了 25 個基點。我的意思是，如果我們——即使我們做兩到三次，也少於 1%。當聯邦基金利率處於 5.5% 時，我認為這還不足以真正激發投資等方面的思考熱情。

So and then also of all election is something no one knows by now. I mean, there's a lot of drama going on. So we'll just have to watch it and see how it goes and then see how would that affect business sentiment. But at this stage right now, my expectation is still going to -- everything say more at the same here is like maybe is exactly what the Fed is driving a soft lending. I think that's what it looks like going in that direction.

所以，到目前為止，還沒有人知道所有的選舉。我的意思是，有很多戲劇性的事情正在發生。所以我們只需要觀察它的發展，然後看看它將如何影響商業情緒。但在目前這個階段，我的預期仍然是——一切都在同時進行，這也許正是聯準會正在推動的軟貸款。我認為朝那個方向發展看起來是這樣的。

So far in our business still seems to be holding up pretty good and -- but no one's going out there trying to aggressively chase new business at this point and I expect that's going to be the way it is for the fourth quarter and possibly even the first quarter. And then we'll see we'll see how elections may affect policy and so forth.

到目前為止，我們的業務似乎仍然保持良好——但目前沒有人試圖積極地追逐新業務，我預計第四季度，甚至第一季的情況都會如此。然後我們將看到選舉如何影響政策等等。

Brandon King, Truist Securities.

布蘭登金 (Brandon King)，Truist Securities。

So from what I understand, residential is going to lead loan growth in the back half of the year. So could you just talk about what you're seeing in that category as far as demand? There's concerns about housing supply. I know you have a unique product, but just give us some context behind your outlook already driving growth for the back half of the year and how sensitive that could be to interest rate moves and other things? Thanks.

據我了解，住宅貸款將在今年下半年引領貸款成長。那麼，您能否談談您對該類別的需求？人們對住房供應存在擔憂。我知道你們的產品很獨特，但請給我們介紹一下你們對下半年經濟成長的展望，以及這對利率變動和其他因素的敏感度如何？謝謝。

Yeah. And let me just make sure we're clear. Residential growth will continue to be a consistent contributor to the growth at about the pace it's been here over the first half of the year into the second half of the year. Our pipelines already here in the third quarter would support that. We can see that necessarily shifting much in our outlook.

是的。讓我確保我們清楚明白。住宅成長將繼續成為經濟成長的持續貢獻者，其速度與今年上半年和下半年大致相同。我們第三季已有的管道可以支持這一點。我們可以看到，我們的觀點必然會發生很大的轉變。

C&I will be as was today this quarter. A prominent contributor to the quarter. It will moderate, but it could also still be a good contributor to the overall growth. We do have a unique product offering. And one way to think about it is most of our borrowers are only borrowing $0.5 on a dollar. And so by definition, they're sort of [5/8] as rate sensitive as your typical 80% LTV borrower. And therefore, we have not seen the same downdraft in overall origination activities. And we think that will hold here.

本季度的 C&I 將與今天一樣。本季的傑出貢獻者。雖然這一成長將會減緩，但仍可能對整體成長產生良好的貢獻。我們確實有獨特的產品。一種思考方式是，我們的大多數借款人每借一美元只借 0.5 美元。所以根據定義，他們對利率的敏感度與典型的 80% LTV 借款人一樣為 [5/8]。因此，我們並未看到整體發起活動出現相同的下滑趨勢。我們認為這種情況將會持續下去。

As Dominic mentioned, we don't think a rate cut or to will too much difference to the outlook. And those people that are coming to us pursuing the American dream of homeownership are not going to be turned away or more excited necessarily by give-or-take 25 basis points.

正如多明尼克所提到的，我們認為降息或升息不會對前景產生太大影響。而那些來我們這裡追尋擁有自己住房的美國夢的人們並不會因為 25 個基點的上下浮動而被拒之門外，也不會因此而感到興奮。

Got it. Okay. And then in regards to the new commentary, I think you briefly mentioned kind of CD repricing, particularly the Lunar New Year deposits. Could you just give us some context was a high of what you're expecting as far as seen in pricing in the back half of the year in how the opinion that is our own rate cuts or not?

知道了。好的。然後關於新的評論，我想您簡要地提到了 CD 重新定價，特別是農曆新年存款。您能否給我們一些背景信息，就今年下半年的定價而言，您預計的最高點是多少，您認為我們是否會降息？

The bulk of the Lunar CD pricing driver in the first quarter was at a rate of 5.25%. Our current special offering today are at 5% and 4.88%, and we therefore expect that we will be able to reprice somewhat lower, but that's also a function of all that coming through in most of that activity it was sort of February into March. So the proof will be in August and into September when those come off. And we think right now, we have a competitive rate that will keep us managing and maintaining those balances, but we'll see how that plays out over the next 45 days.

第一季農曆 CD 定價的主要驅動因素是 5.25% 的利率。我們今天的特別優惠利率為 5% 和 4.88%，因此我們預計能夠將價格重新定得稍微低一些，但這也是 2 月到 3 月期間大部分活動的結果。因此，證據將在八月和九月揭曉。我們認為，目前，我們擁有具有競爭力的利率，可以讓我們管理和維持這些餘額，但我們將觀察未來 45 天內的情況。

Got it. Thanks for taking my questions.

知道了。感謝您回答我的問題。

Timur Braziler, Wells Fargo.

蒂穆爾‧巴西勒 (Timur Braziler)，富國銀行。

Hi, good afternoon. So taking that a line of questioning, sticking with the line of questioning on deposits, nice reversal in trends within DDA. Is that sustainable going forward? Do you think that we've kind of troughed within excess liquidity exiting the balance sheet? Or is there still stuff on risk maybe in the back end of the year that there's some more migration in that line.

嗨，下午好。因此，採取這種質疑方式，並堅持對存款的質疑，DDA 內部的趨勢發生了很好的逆轉。這種發展趨勢能持續下去嗎？您是否認為我們已經陷入資產負債表中過剩流動性的低谷？或者是否仍然存在風險，也許在今年年底會出現更多的遷移。

We definitely see it as rate dependent. And so what we've said previously, and we still believe cases as long as rates remain elevated, there will be incremental push for deposit migration that did somewhat slow during the second quarter and there was a little pop at the end of the quarter, but the trend would be still somewhat negative migration until the rate cuts start. And at that point as expectations dip lower, we think the incremental bit away from money market funds and from other offerings will be lessened enticing and result in less migration and even possibly stabilization and then subsequent reversal. And we think that's our model being view. But we also see anecdotally that other banks have reported similar stabilization, and we think that's consistent with industry trends.

我們確實認為它依賴利率。正如我們之前所說，我們仍然相信，只要利率保持在高位，存款遷移就會逐漸增加，儘管第二季度的遷移速度有所放緩，但在本季度末出現了小幅增長，但在降息開始之前，遷移趨勢仍會是負面的。隨著預期下降，我們認為，貨幣市場基金和其他產品的增量吸引力將降低，導致遷移減少，甚至可能穩定下來，隨後出現逆轉。我們認為這就是我們的模型視圖。但我們也從傳聞中看到其他銀行也報告了類似的穩定情況，我們認為這與行業趨勢一致。

Great. And then maybe following up on Ebrahim's question, just looking at some of the uncertainties with the election. I'm just wondering if your Greater China clientele or maybe pulling forward some of the activity in anticipation of some of the uncertainty may be in the back end of the year. I guess what is the temperature gauge of your Greater China client base? And how are they thinking about the election risk or lack thereof in the back end of the year?

偉大的。然後也許可以跟進易卜拉欣的問題，只是看看選舉中的一些不確定因素。我只是想知道，您的大中華區客戶是否會因為預期到年底的一些不確定性而提前開展一些活動。我猜你們大中華區客群的溫度是多少？他們如何看待今年底的選舉風險？

Well, if you look at our Greater China customers, I think that -- I don't think they have a much big anticipation of what's going to come out from the election one way or the other. And I mean, as we looked at interesting enough for the last eight years under two different administrations, and if you look at the the tariff started in 2017. But then in the current administration, not only is keep going on and figured out a little bit more.

嗯，如果你看看我們大中華區的客戶，我認為——我認為他們對選舉結果並沒有太大的期望。我的意思是，我們看到過去八年在兩屆不同政府領導下的情況已經夠有趣了，如果你看看 2017 年開始徵收的關稅。但在現任政府看來，不僅是繼續前進，還能找到更多的解決方案。

So but then if you take a look at East West Bank, we haven't really stopped growing our cross-border business and we consistently outperform our peer groups in terms of financial performance. I think it all get down to at the end of the day despite political rhetorics and there was some US-China geopolitical issue when you get down to national security, et cetera. The common goods have been shipped between US and China import and export, really hasn't slowed down that much. There are a lot of business, still, commerce going back and forth.

但如果你看看華美銀行，你會發現我們並沒有停止發展跨國業務，而且在財務表現方面，我們的表現一直優於同業。我認為，儘管存在政治言論，但歸根結底還是要歸結為國家安全等方面的中美地緣政治問題。美國和中國之間的普通貨物進出口實際上並沒有放緩那麼多。仍有許多生意和貿易在來來回回地進行。

And I would say that the vast majority of the business really the business going as usual. They don't like to hear those rhetorics. However, the business still going as usual. What we found is that many of our customers, whether they're in import business, export business from the Greater China region, all US to Asia region, and they continue to visits. They continue to find way to do business.

我想說的是，絕大多數業務其實都照常進行。他們不喜歡聽到這些言語。不過，業務仍照常進行。我們發現，我們的許多客戶，無論他們是從事進口業務，還是從事大中華地區的出口業務，還是美國到亞洲地區的所有業務，他們都在繼續訪問。他們繼續尋找做生意的方法。

And we at East West continue to navigate in this rough sea and somehow understanding the dynamic. And I think we've done a pretty good job managing this overall US geopolitical situation. And that's why we uniquely find a way to continue to be one of the highest performing bank in a country simply because we know what we're doing and we continue to go on through eight years.

我們東西方人士將繼續在這片波濤洶湧的大海中航行，並以某種方式了解其中的動態。我認為我們在管理美國整體地緣政治局勢方面做得相當不錯。這就是為什麼我們能夠以獨特的方式繼續成為一個國家中業績最高的銀行之一，因為我們知道自己在做什麼，並且我們已經堅持了八年。

As for many others, we looked at significant turmoil, but for us somehow we get by just fine. And this is something that we feel very confident in the next four to eight years. I don't know who's going to be the President. It really doesn't matter to us because we are here to run East West Bank. We know how to run our business and so far so good.

和許多其他人一樣，我們面臨著巨大的動盪，但我們還是安然度過了。我們對未來四到八年內實現這一點非常有信心。我不知道誰將成為總統。這對我們來說真的無所謂，因為我們來這裡是為了經營華美銀行。我們知道如何經營我們的業務，而且到目前為止一切都很好。

Matthew Clark, Piper Sandler.

馬修·克拉克，派珀·桑德勒。

Hey, thank you. First, let me just around capital. Given that you're not looking to accrete more capital at this stage, should we just assume you re-up the buyback when you're done? Or are you more price sensitive at this level? And then if not any other ways to return capital that you might be considering?

嘿，謝謝你。首先，讓我簡單介紹一下首都。鑑於您現階段不打算累積更多資本，我們是否應該假設您在完成後重新回購？或者說您對這個層面的價格更加敏感？那麼，您是否正在考慮其他返還資本的方式？

We'll begin with, we've always been both opportunistic and shareholder-friendly and those guiding principles will remain during the quarter. I think we were fairly opportunistic in the repurchases we did. We didn't fully utilize what we have left. We have $49 million yet to go, and we'll continue to look at it on an opportunistic basis. We would not expect to reauthorize until we've exhausted our current program. And so we'll update you as that come together.

首先，我們始終秉持機會主義和股東友善型的原則，這些指導原則將在本季繼續堅持。我認為我們的回購是相當投機性的。我們並未充分利用剩下的資源。我們還有 4900 萬美元尚未到位，我們將繼續以機會主義的態度考慮它。在我們用盡目前計劃之前，我們不會重新授權。一旦有進展，我們會及時向你通報。

Okay. But you're not considering any other types of capital returns at this stage other than organic growth?

好的。但除了有機成長之外，您現階段沒有考慮任何其他類型的資本回報嗎？

We traditionally look at our dividend on an annual basis, and we'll obviously look at that as we look to our expectations for 2025. I think obviously, our first and foremost use of capital is to support our customers that will always be our first use capital. We are not currently contemplating any meaningful M&A activity, and we certainly think about the other use of capital in a shareholder-friendly manner.

我們傳統上按年度來考慮股息，在製定 2025 年的預期時，我們顯然也會考慮這一點。我認為，顯然，我們資本的首要用途是支持我們的客戶，這永遠是我們資本的首要用途。我們目前沒有考慮任何有意義的併購活動，我們當然會以股東友善的方式考慮其他資本用途。

Okay. Great. And then the question just on the loan side, I think you hired the Head of Entertainment lending from City National in the last two to three months. (multiple speakers) Have they contributed to that entertainment growth yet? And how large of a contributor would you like that vertical to be? Or what's your limit in that vertical?

好的。偉大的。然後是關於貸款方面的問題，我認為你們在過去兩三個月內從 City National 聘請了娛樂貸款主管。（多位發言者）他們對娛樂業的發展做出了貢獻嗎？您希望該垂直產業的貢獻者有多大？或者你在那個垂直方向上的極限是什麼？

Yes, they have already contributed. And yes, one of the key drivers of growth in our C&I business for this quarter was an uptick in entertainment lending and I think we like all of our verticals, but we particularly like the entertainment vertical being based here in the Los Angeles region.

是的，他們已經做出了貢獻。是的，本季我們 C&I 業務成長的主要驅動力之一是娛樂貸款的成長，我認為我們喜歡所有的垂直業務，但我們特別喜歡位於洛杉磯地區的娛樂垂直業務。

Dominic, anything you'd care to add?

多明尼克，您還有什麼要補充嗎？

Well, I think that as much as we always like to have, there's industry vertical to continue to excel. But we at East West Bank is very much put overall risk oversight as a priority. That's why if you reflect back in March 2023, we didn't have the kind of problems like some of the other larger banks had in California. Because we did not overload ourselves with private equity, venture capital, not that we didn't like the business. We love those business. We're doing good with those business. But we would never allow us to also extend to one particular industry that potentially when there's a run here and there, that causes harm.

嗯，我認為，正如我們一直希望的那樣，垂直行業仍能繼續保持卓越表現。但華美銀行非常重視整體風險監督。這就是為什麼如果你回想 2023 年 3 月，我們並沒有遇到加州其他一些大型銀行所遇到的那種問題。因為我們沒有在私募股權和創投上投入過多的資金，並不是說我們不喜歡這個業務。我們熱愛這些生意。我們的這些業務做得很好。但我們絕不會允許我們將業務擴展到某個特定的產業，因為一旦出現擠兌，就有可能造成傷害。

So I very much expected entertainment business to continue to grow. not only in the United States, but also in the Greater China region. We expect the entertainment business to grow in a very healthy pace with the exception that will never allow it to grow so much that becomes over-concentrated. That potentially causes regret someday when there's so much concentration in one particular industry.

因此我非常期待娛樂業能夠持續成長。不僅在美國，而且在大中華地區。我們預計娛樂業務將以非常健康的速度成長，但絕不會讓其成長過快而導致過度集中。當某一特定產業過於集中時，有一天這可能會引起人們的後悔。

So East West always run a very diversified portfolio. As you can see, actually quarter-by-quarter, we always have different winners. When Chris talked about this quarter is entertainment and something else next quarter probably be somebody else again. It's nice to see those different units all competing positively to get that championship per quarter. So and by doing that, we don't have an issue of over-concentration.

因此 East West 始終保持著高度多元化的投資組合。正如您所看到的，實際上每個季度我們總會有不同的贏家。當克里斯談到本季的主題是娛樂，而下個季度的主題是其他，可能又會是其他人。很高興看到各個不同部門都積極競爭，爭取每季的冠軍。所以透過這樣​​做，我們就不會出現過度集中的問題。

Chris McGratty, KBW.

克里斯·麥格拉蒂，KBW。

Well, thanks. I noticed several times on the call you talked about the optimism for the fee income outlook. Is there a scenario where there could be a tuck-in acquisition, the use of capital to grow that business?

好吧，謝謝。我注意到您在電話中多次談到對費用收入前景的樂觀態度。是否有可以進行附加收購，利用資本來發展業務的情形？

There could be obviously last year, Chris, you'll recall the company made a significant investment in Reliant the asset management entity that we took a 49% stake in. And so those types of opportunities may present themselves, but it's not top of the agenda as we sit here, say looking forward.

顯然，克里斯，你會記得，去年公司對資產管理實體 Reliant 進行了大量投資，我們持有其 49% 的股份。因此，這些類型的機會可能會出現，但這並不是我們目前所關注的首要議題。

Okay. And Chris, while I have you just I just want to get a little bit of a better understanding on slide 6, where you talk about the $1 billion cash flow hedges that come off in the first quarter of the negative carry and then the hedges and the backup. How should we think about just the impact on margin and NII from those actions in next year.

好的。克里斯，我只是想讓您更好地理解第 6 張幻燈片，其中您談到了第一季產生的 10 億美元現金流對沖，包括負利差，然後是對沖和備用。我們該如何看待明年這些行動對利潤率和NII的影響。

So the current cash flow hedges are causing us, if you just top of that page. The impact is about $25 million a quarter, and it's pulling down the NIM by about 15 basis points in the current period. And those hedges largely expire come Q1 2025. And so essentially that negative drag will work its way down.

因此，如果您只是翻到該頁面的頂部，當前的現金流量對沖就會對我們造成影響。其影響約為每季 2500 萬美元，並將當前期間的 NIM 拉低約 15 個基點。這些對沖大部分將在 2025 年第一季到期。因此從本質上來說，這種負面阻力將會逐漸消失。

Of course, if there's a rate cut in September and additional ones in the Q4 will incrementally chip away at that. But that whole amount will come off Q1 '25. And what will happen then is somewhere in the second half of the year, $1 billion of new hedges will come on with a blended average received before. So the extent by the middle of '25, the Fed's down to [4%], no harm, no foul. If it's above there, it will cost us a little for the interim. If it's below there, we'll see the benefit of that in our bottom line begin in the second half of '25.

當然，如果 9 月降息，且第四季進一步降息，將會逐步削弱這一影響。但這全部金額將從25年第一季開始扣除。那麼將會發生的情況是，在今年下半年的某個時候，將有 10 億美元的新對沖與先前收到的混合平均值相結合。因此，到 25 年中期，聯準會將利率降至 [4%]，這並沒有什麼損害，也沒有什麼不妥。如果高於這個水平，我們在此期間就會花費一些錢。如果低於該水平，我們將在 25 年下半年開始看到其對我們底線的好處。

Gary Tenner, D.A. Davidson.

蓋瑞‧坦納（Gary Tenner），地方檢察官戴維森。

Thanks. Good afternoon. Just wanted to ask on the loan side on the C&I side, in particular. Chris, for your mention of the surge late quarter. I don't think I heard you comment on this, but wondering if there's any through line in terms of types of loans, business purpose, a commentary from borrowers that you think kind of drove that surge.

謝謝。午安.我只是想特別問問 C&I 方面的貸款情況。克里斯，感謝您提到了本季末的激增。我想我沒有聽到您對此發表評論，但想知道在貸款類型、商業目的、借款人評論方面是否有任何主線，您認為這些因素推動了這種激增。

There was a little bit more activity late in the day from some private equity and one particular biotech related entity. And I think we were a little bit surprised by the volatility, but it was positive. So we took it and I think we've seen some of that activity moved back already, which were not exactly what we expected. But yes, there's a bit of volatility, but nonetheless, we expect to grow balances in total throughout the third quarter and the fourth quarter.

當天晚些時候，一些私募股權公司和一家特定的生物技術相關實體有一些活動。我認為我們對這種波動感到有點驚訝，但它是積極的。所以我們接受了它，我認為我們已經看到一些活動已經回落，這並不完全是我們所預期的。但確實存在一些波動，但儘管如此，我們預計第三季和第四季的總餘額將會增加。

Okay, great. And then if you could just update us on the thoughts around the FHLB borrowings you have that replaced the BTFP. Is that purely going to be a function of liquidity trends over time in terms of paying that down? Or is there a more specific focus on that?

好的，太好了。然後，如果您可以向我們介紹一下您對取代 BTFP 的 FHLB 借款的想法的話。就償還債務而言，這是否純粹是隨時間推移的流動性趨勢的函數？或對此有更具體的關注嗎？

Yeah, I think we're focused on making sure we get past sort of this rollover period here with the CDs in Q3. And as we continue to see positive trends, which we have seen and continue to see so far into the Q3 period, additional oncoming -- on onboarded customers on the deposit side, we'll consider where we put those incremental dollars to work. Whether that's to earn cash at the Fed or pay down liabilities. That's about a push. So we'll look at that and put money to work obviously every day.

是的，我認為我們的重點是確保我們在第三季度過 CD 的展期。隨著我們繼續看到積極的趨勢，到目前為止，我們已經看到並繼續看到這種趨勢進入第三季度，在存款方面，我們將考慮將這些增量資金投入到何處。無論是為了在聯準會賺取現金還是償還債務。這相當於一次推動。因此，我們會注意這一點，並每天投入資金。

Thank you.

謝謝。

That having been said, I would expect that we'll keep a good portion of that FHLB outstanding for an extended period of time as we think that's going to become a component of what otherwise maintains a very strong liquidity profile.

話雖如此，我預計我們將在較長一段時間內保留很大一部分 FHLB 未償還餘額，因為我們認為這將成為維持非常強勁的流動性狀況的一個組成部分。

Samuel Varga, UBS.

瑞銀的 Samuel Varga。

I just wanted to go back to the deposit conversation for a little bit and could you provide an update on private banking deposits? And specifically, I guess, how they've trended over the past 12 months? And then what sort of growth you anticipate over the next 12 to 18 months.

我想稍微回顧一下存款主題，您能提供有關私人銀行存款的最新情況嗎？具體來說，我想，它們在過去 12 個月中的趨勢如何？那麼您預計未來 12 到 18 個月會出現什麼樣的成長。

Yeah. Our Private Banking -- customers participated in our CD specials and have found a positive place to put incremental balances of work. And so those balances have generally grown. We expect them to likely continue to grow as wealth management solutions overall have grown nicely. And as they come in, they allocate a portion of their portfolio or they reallocate record equity levels into fixed income and stable products. And that has generally been a win for us.

是的。我們的私人銀行—客戶參與了我們的 CD 特別活動，並找到了一個積極的地方來存放增量工作餘額。因此這些餘額總體上是成長的。我們預計，隨著財富管理解決方案整體上取得良好成長，它們也可能繼續成長。當他們進入時，他們會分配一部分投資組合或將創紀錄的股權水準重新分配到固定收益和穩定產品。整體來說，這對我們而言是一次勝利。

I think private banking continue to bring in new customers and they are new customers, both from the fee incomes perspective in terms of wealth management product side and also on the deposits and loans.

我認為私人銀行不斷吸引新客戶，無論是從理財產品費用收入的角度，或是從存款和貸款的角度，都是新客戶。

And then just thinking of piggybacking off of that on the wealth management side, can you just share broader thoughts around this business? Where do you see it going and the wealth management over the next couple of years. What sort of opportunities are there in the market from disruption that you'd like to take advantage of?

然後，您只是考慮在財富管理方面利用這一點，能否分享一下對這項業務的更廣泛的想法？您認為未來幾年其發展方向和財富管理將會如何？市場上存在哪些顛覆性機會值得您利用？

On the wealth management area, we see tremendous potential for East West Bank. Our approach is not to trying to do quick hit and rather take our time to strategically plan it in the right way and then have gradual, sustainable, recurring, and profitable type of business.

在財富管理領域，我們看到華美銀行擁有巨大的潛力。我們的方法不是試圖快速見效，而是花時間以正確的方式進行策略規劃，然後開展漸進的、可持續的、反覆的和有利可圖的業務。

So far has been going good. I mean, oftentimes people may looked at our overall wealth management fee income. It's really not at a very high level from a percentage standpoint to our overall profitability. But we're trying to grow in the right way. And we see a tremendous opportunity and potential for the demographic of the customers that we have so far. And we just see that there is just going to be a great opportunity, not only just here in the United States and even potentially in Asia area.

到目前為止一切進展順利。我的意思是，人們常常會關注我們的整體財富管理費收入。從百分比來看，這與我們整體的獲利能力相比確實不太高。但我們正努力以正確的方式發展。我們看到，對於我們目前的客戶群來說，存在著巨大的機會和潛力。我們看到這將是一個巨大的機遇，不僅在美國，甚至可能在亞洲地區。

Andrew Terrell, Stephens.

安德魯·特雷爾，史蒂芬斯。

Hey, good afternoon. Most of mine were addressed already. But just a quick modeling question. Chris, can you remind us the repricing dynamics on the securities portfolio? Just how much of that is floating rate at this point? And then what does the quarterly cash flow look like?

嘿，下午好。我的大部分問題已經解決。這只是一個簡單的建模問題。克里斯，您能提醒我們一下證券投資組合的重新定價動態嗎？目前浮動利率到底是多少？那麼季度現金流是什麼樣的呢？

can you remind us that the repricing dynamics on the securities portfolio, just how much of that is floating rate at this point? And then what does the quarterly cash flow look like?

您能否提醒我們證券投資組合的重新定價動態，目前有多少是浮動利率？那麼季度現金流是什麼樣的呢？

Sure. It's roughly 60% -40% on the overall mix, 60% fixed, 40% floating. And the floating is all Ginnie Mae floaters at SOFR plus, I'll call it 115 for conversation. And the cash flow on a recurring monthly basis is 110 to $120 million. Neal, obviously with some variability.

當然。整體組合約為 60%-40%，其中 60% 固定，40% 浮動。浮動利率均為 Ginnie Mae 浮動利率，利率範圍為 SOFR 以上，為方便討論，我稱之為 115。每月經常性現金流為1.1億至1.2億美元。尼爾，顯然具有一些變化。

The floating is all Jamie floaters that So plus, call it one 15 for conversation. And the cash flow on a recurring monthly basis is $110 million to $120 million, obviously with some variability.

浮動都是 Jamie 浮動，所以加上它，稱為 15 來進行對話。每月經常性現金流為 1.1 億至 1.2 億美元，顯然有些波動。

And then do you have the offhand, just the yield on the securities purchased during the second quarter? Just trying to think about where the securities yield heads into 3Q?

那麼，您是否可以立即知道第二季購買的證券的收益率？只是想想第三季證券殖利率會走向何處？

Yeah, there was about $200 million of fixed that call it 5.5-ish and there was the balance was all floatersat SOFR plus 15-ish.

是的，大約有 2 億美元的固定資產，大約是 5.5 億美元，餘額都是 SOFR 加上 15 億美元的浮動利率。

Manan Gosalia, Morgan Stanley.

摩根士丹利的馬南‧戈薩利亞 (Manan Gosalia)。

I wanted to ask on the spreads you're getting on your new -- loans. Some of your peers have highlighted that there's tougher competition from both banks and non-banks, and that's putting pressure on C&I spreads. Is that something you're seeing in your portfolio as well?

我想詢問一下你們新貸款的利差。一些同業指出，來自銀行和非銀行機構的競爭愈加激烈，這給工商企業利差帶來了壓力。您在自己的投資組合中也看到了這一點嗎？

Yeah. I think we're seeing in C&I generally in the SOFR plus 250 zone for most of the stuff that we're putting on balance sheet. I don't know, that that's a typical for the traditional business range that we've done, but we're -- that's where we're seeing it.

是的。我認為，我們在 C&I 中看到的大多數資產負債表中的項目通常都處於 SOFR 加上 250 的區域。我不知道這是否是我們從事的傳統業務範圍內的典型情況，但我們 - 這就是我們所看到的。

And then on the commercial real estate front, can you talk about what your conversations have been like with borrowers? I mean, do you think two or three rate cuts from here will alleviate some of the pressure that they're feeling, especially on the office and multifamily side. And more recently, as you've maybe extended or whichever launches come up for extension what has been the reaction from the borrowers? Have they brought in more equity. Just looking to get more color there. Thanks.

那麼在商業房地產方面，您能談談您與借款人的對話情況嗎？我的意思是，您是否認為從現在起兩三次降息將減輕他們所感受到的一些壓力，特別是在辦公室和多戶住宅方面？最近，當您延長貸款期限或任何即將延長的貸款發行期限時，借款人有何反應？他們是否帶來了更多股權？只是想在那裡獲得更多的色彩。謝謝。

So as Dominic said a few minutes ago, I don't know that a rate cut or two will make that much difference in the near term. And so if rates are elevated in the [5%-plus] ZIP code for an extended period of time on the base rate. It's likely there will be pain to be felt by a number of borrowers. Many of whom are buying the projects cap rates of 5% a few years ago. So that will be a challenge for many of them.

正如多明尼克幾分鐘前所說的那樣，我不知道一兩次降息會在短期內帶來那麼大的影響。因此，如果 [5% 以上] 郵遞區號區域的利率在基準利率的基礎上長期上升。許多藉款人可能會感受到痛苦。其中許多人幾年前購買的專案資本化率為 5%。所以這對他們中的許多人來說都將是一個挑戰。

We have taken a very hard look at with Irene and Dominic, but also obviously our credit teams and our RMs, et cetera, all the way down to figure out what's coming due, what the situation, where the cash flows, whereas the debt service coverage, what else can we do with these customers that are up for renewal from now through the end of 2025 has been the primary focus, but looking at things even beyond that, just to make sure that we're on top of things.

我們與艾琳和多明尼克進行了非常認真的研究，顯然我們的信貸團隊和客戶經理等也進行了深入的研究，以弄清楚哪些債務到期、情況如何、現金流向何處、債務償還能力如何，我們還能為從現在到 2025 年底需要續約的客戶做些什麼，這是我們關注的重點，但我們也會考慮到更遠的事情，以確保我們能夠掌控的事情。

So I think the short answer is we're doing all of the above to make sure that we're proactive and ahead of it, and it is an issue. But to the extent that rates come down, not one or two cuts, but 100 basis points to 150 basis points, things get easier. And obviously, if rates come down 200 basis points will probably there's a lot of issues that just go away.

所以我認為簡短的回答是我們正在採取上述所有措施以確保我們能夠積極主動並領先於這個問題。但如果利率下降，不是降一兩次，而是降 100 個基點到 150 個基點，事情就會變得容易起來。顯然，如果利率下降 200 個基點，很多問題可能就會消失。

I'll just add to it. Certainly the macro environment for office, it is what it is. But this continuous review of the portfolio, this is something we started before the pandemic. And efforts that we did there for borrowers to kind of shore up, pay down loans, pledge additional asset, what have you. So today I think if you look at the results that we have, the still very, very good credit quality across the Board, a lot of that is the proactive actions that we took years ago.

我只是補充一下。當然，辦公室的宏觀環境就是這樣。但對投資組合的持續審查，是我們在疫情爆發前就開始做的。我們所做的努力是為了幫助借款人鞏固、償還貸款、質押額外資產等等。所以今天我認為如果你看看我們所取得的成果，你會發現整體信用品質仍然非常非常好，其中很大一部分是我們多年前採取的主動行動。

Got it. And what matters more? Is that the belly of the curve or is it the short end of the curve for that?

知道了。還有什麼更重要呢？這是曲線的腹部還是曲線的短端？

Can you reframe the question, Manan?

你能重新表達一下這個問題嗎，馬南？

Oh, just in term of --

哦，只是就--

Yeah. Short end, yeah, the vast majority of our customers are floating rate borrowers and while they might fix their need to refinance if they can will be best met on the short end.

是的。短期內，是的，我們的絕大多數客戶都是浮動利率借款人，雖然他們可能會修復再融資的需求，但如果可以的話，短期內最好能得到滿足。

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。我想將會議交還給 Dominic 做最後發言。

I just wanted to thank everyone for joining us on the call today, and we are looking forward to talking to you again in October. Thank you.

我只是想感謝大家今天參加我們的電話會議，我們期待著十月份再次與你們交談。謝謝。

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。