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.

美好的一天，歡迎參加東西銀行 2024 年第二季財報電話會議。 （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 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 年第二季的財務表現。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 Irene Oh 首席風險長。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。

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.

本次電話會議期間的幻燈片參考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，由於存在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。

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說明以及 GAAP 與非 GAAP 財務指標的調節，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。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 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，東西方多元化業務模式的優勢在第二季度繼續為我們的股東帶來好處。

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 年第二季淨利為 2.88 億美元，即稀釋後每股收益 2.6 美元。期末貸款及存款均衡成長，各成長2%。在工商業和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.

我們的資產負債表成長得益於創紀錄的季度費用收入 7,700 萬美元，較上季成長 8%，因為我們專注於發展我們的費用業務。這一增長是由外匯收入和財富管理費用的顯著持續強勁所推動的。

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.

第二季年化淨沖銷額穩定在 2,300 萬美元。截至季末，我們的不良資產率為 27 個基點，處於同業最低水準。我們的批評貸款減少了10%。我們相信，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創造了頂級價值，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較上季成長 3%，較去年同期成長 15%。最後，我很高興地宣布華美銀行再次被《銀行總監》雜誌評選為資產超過 500 億美元的表現第一的銀行。

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獲得冠軍，也是我們在過去四年中第三次獲得冠軍。這項成就證明了我們員工的穩定執行力，並展示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?

我現在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。轉向幻燈片 4 上的貸款。商業和工業的成長是由娛樂貸款和整體商業和工業利用水準的顯著增長所推動的。

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業將持續成長，但成長速度可能較為溫和。住宅抵押貸款（技術難度）保持一致，我們的管道水平在進入第三季度時仍然強勁。我們預計住宅抵押貸款將繼續成為目前水準的成長動力。

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.

在商業房地產領域，我們看到第二季多戶住宅的健康成長，被商業房地產投資組合其餘部分的下降所抵消。我們將繼續與我們的長期客戶合作，但預計 2024 年剩餘時間我們的商業房地產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%.

轉到投影片 5 的存款。第二季標誌著客戶成長連續第四個季度超過 10 億美元，反映出我們對全面關係的重視。值得注意的是，期末無息存款結構穩定在 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。投影片 6 介紹了我們的利潤率和淨利息收入趨勢。第二季美元淨利息收入總計 5.53 億美元，淨利差為 3.27%。正如預期的那樣，本季淨利差壓縮反映出存款和融資成本總體較高，但固定利率資產收益率的提高部分抵消了影響。

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.

隨著下半年的到來，我們預期淨利差在觸底前會小幅走低。儘管如此，資產成長的增加預計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。本季我們的費用收入達到了創紀錄的水平，達到 7,700 萬美元，比前幾季增加了 600 萬美元，即 8%，每個費用類別都有成長。我認為這說明了很多。

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

現在，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，祝所有與會人員下午好。在投影片 8 上，信貸趨勢保持穩定，我們投資組合的資產品質仍然強勁。正如多明尼克先前所提到的，我們報告第二季的淨沖銷額為2,300 萬美元，年化額為18 個基點，而2024 年第一季的淨沖銷額為2,300 萬美元，年化額為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.

不良資產環比上升 4 個基點，佔總資產的 27 個基點，主要是由於我們已結清的工商業貸款和商業房地產貸款增加。儘管如此，非應計貸款和不良資產的絕對水準仍然相對較低且處於可控水準。

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.

由於關注類貸款和次級貸款減少，本季不良貸款減少了 10%。關注貸款比率較上季下降22個基點至貸款的0.83%，分類貸款比率較上季下降3個基點至1.22%。我們報告稱，第二季信貸損失撥備增加至 3,700 萬美元，而第一季為 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，未償還餘額的5%計劃於2024年底到期，未償還餘額的10%將於2025年到期。 8%的未償餘額將於 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.

我們在管理信用風險方面保持警惕和積極主動。根據我們今天所知，我們繼續預計在可預見的未來，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 $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%].

轉向投影片 9。

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.

在商業房地產方面，我們增加了辦公室貸款準備金700萬美元，使辦公室貸款總覆蓋率達到3.10%。我們認為，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%.

轉向投影片 10。 East West 普通股一級資本比率高達 13.7%，而我們的有形普通股資本比率為 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躋身業界資本最雄厚的銀行之列。 East West 在第二季以約 4,100 萬美元的價格回購了 560,000 股普通股，平均價格低於每股 73 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年第三季股利將於2024年8月16日向8月2日登記在冊的股東支付。

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

現在我將轉回給 Chris，分享我們對 2024 年全年的展望。克里斯？

Thank you, Irene. Our full year outlook 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。我們的全年展望與第一季基本保持不變。我們仍然假設截至本季的遠期曲線預計將在 9 月首次降息。

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%.

我們繼續預期全年期末貸款成長率在 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.

關於稅項，我們現在預計有效稅率將降至 21% 至 23%，而先前的範圍為 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.

（操作員說明）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。你在那裡度過了一個穩定的季度，並實現了相當廣泛的成長。所以我希望你能談談你對下半年的發展軌蹟的期望，或是你對全年整體成長的看法？

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，到中點為止，我們的全年年成長率約為 10%。我認為其核心驅動因素顯然是存款帳戶費用是最大的組成部分，而且它也以同樣的速度增長，並且一直在增長，稱之為每季度 100 萬美元的範圍。

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.

我不知道這種情況是否會在利率下降的環境中立即持續下去，但這應該是另一個季度左右的好兆頭。貸款費用是貸款成長的函數。我認為我們預計今年下半年貸款將放緩。所以我預計這種情況以及衍生性商品在某種程度上與貸款是一致的。

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.

外匯一直是我們業務的重要組成部分，在本季度做出了巨大貢獻。財富管理費用確實存在一些波動，但成長得非常好，顯然受益於整體股市積極和固定收益收益率強勁的背景。同樣，當我們展望今年下半年時，這種情況可能會在某種程度上有所緩解。

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

好的。因此，一切可能會有點溫和，但聽起來像是在尋求體面的成長。

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

隨著時間的推移，提高整體費用收入水準是我們的核心關注點。

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。也許作為我上季度資本的後續行動，我知道您正在談論圍繞目前的目標 TCE 比率範圍 [9394]。對此有何改變——考慮一下？我們是否應該預期至少在今年下半年會出現一個區間？

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

我們仍然認為這不符合我們股東的利益。我們擁有超出等級的額外資本。顯然，它會圍繞幾個基點反彈，但我們正在努力考慮以回報最佳利益來管理這一點

Jared Shaw, Barclays Capital.

賈里德·肖，巴克萊資本。

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，考慮到您剛剛在季度末指出的 C&I 的強勁增長，以及可能結束存款重組壓力的一些動態。在這種背景下，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。我們仍然預計下半年利潤率將出現一些下行壓縮，不確定谷底是否會在第三季或第四季出現，但我們認為今年稍後會出現谷底。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的成長正是因為第二季的餘額成長，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更為溫和。

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，資產負債表的成長將使NII繼續走高，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，利潤率壓縮更多來自於融資成本的一些尾部，還是你沒有得到——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，隨著聯準會降息的預期發揮作用，我們預計固定利率資產將受到一些下行壓縮。因此，例如，我們最近在抵押貸款和其他一些固定利率選擇以及固定投資方面獲得的較高收益率將開始下降。這些將對固定利率資產重新定價帶來增量下行壓力。

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 月中旬才會出現）不會對第三季展期的近期存款成本產生太大影響。

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.

所以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。今天我們正在增加存款並對其進行管理，但並不是降低 25 個基點或 30 個基點，因為利率並沒有真正上升或下降。

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，也許作為我的後續行動，就信用而言，C&I NPL 的動態的任何色彩都在上升，但受到批評的卻在下降，有任何更廣泛的趨勢還是那些更一次性的趨勢？

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，顯然在這些水平上，他們的基礎非常低。因此，我們正在為 C&I 仔細尋找貸款和借款人。然後還有 CRE。但我想說的是，目前沒有任何系統性的產業集中度、地區或任何過度關注的事情。

Casey Haire, Jefferies.

凱西·海爾，杰弗里斯。

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，如果我們確實在今年下半年遇到這個低谷，就像遠期曲線按原樣運行時的預期是什麼一樣——它是淨息差穩定，CD重新定價的好處和成熟的對沖抵消了浮動利率的壓力利率貸款書。這裡只是對下半場後發生的事情做一些說明。

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。我認為我們已經說過，每降息 25 個基點，我們就會假設降息帶來的下行壓力約為 200 萬至 300 萬美元。但我們也說過，我們預計這些數字中將包含 50% 左右的存款貝塔值。所以我認為這兩件事在我們的展望中發揮作用。

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.

考慮到這兩個假設，考慮到我們前面看到的增長，我們認為答案是美元NII相當持續地上漲，第三季度和第四季度，利潤率再次從當前水平小幅下降至略低的水平[3.20 % ] 範圍內，然後找到立足點，我們假設會走高，特別是目前對我們造成壓力的一些負現金流對沖在 25 年第一季結束。

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?

明白你了。好的。然後就是貸款成長前景，聽起來像你們。我的意思是，很明顯，你們這些人在短期內堅持住了 CRE，並享受著 C&I Resi 的成長。但聽起來好像你正在尋求開放或重新參與商業房地產和'25，除非我誤讀了。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.

需要明確的是，我們始終為我們的核心客戶服務，並且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，為我們的產品組合提供服務，並為他們提供協助。

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.

關於整體貸款策略，我認為多明尼克已經制定了一個長期計劃，以達到第三個、第三個、第三個。隨著時間的推移，我們將比商業房地產更快地發展我們的工商業和住宅投資組合。

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，我們過去不是在尋找邊際業務，但現在不是。真正回到問題的是我們的核心客戶。別擔心，您會看到很多非常有趣的活動可供他們參與。因此，我們預計商業房地產活動可能會繼續放緩，這僅僅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來在任何經濟環境下支持我們的核心客戶。但對於他們成為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那些沒有意義的交易。

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.

這就是為什麼從 CNI 到 CRE 等的數量在一定程度上與利率環境和經濟環境密切相關。這就是我們在過去幾年中看到利用率和 CNI 也相對較低的原因，只是因為外匯類利率很高，人們可以提款，因為借貸成本要高得多。

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——這就是擁有雄厚的資本和強大的資產負債表並能夠始終照顧好我們的客戶的美妙之處。這些好顧客反過來也會繼續照顧我們。

Ebrahim Poonawala, Bank of America.

易卜拉欣·普納瓦拉，美國銀行。

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.我想也許是第一個，只需點擊投影片 22。這是一種穩態嗎？請提醒我們一點，當我們考慮透過證券賺取資產時，我們是否達到了我們想要的目標？然後就您希望持有的現金水準而言，40 億美元相對於 160 億美元是否是值得考慮的正確水準？

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。我想我們上個季度說過，我們認為整體現金和證券，我們認為一籃子相對於總資產負債表將保持相對穩定。我認為這在平均水平上肯定會發生。

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，從多種因素來看，可投資的金額可能不會比 40 億美元的現金部分減少很多，但可能會減少一點。我們當然有足夠的頻寬和靈活性來做到這一點，但我們不會強迫這樣做。同樣，我們的重點是核心客戶活動、核心貸款成長、核心存款成長，我認為這將在今年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。我想這可能是給你的另一件事，多明尼克。只是您的商業客戶的情緒，當我們考慮可能獲得 9 月份的費率卡時，您將參加選舉，您認為這些是我們可以看到貸款增長和貸款需求加速的觸發器嗎？您是否認為存在一些被壓抑的需求可能導致 2025 年貸款成長反彈？選舉降息週期的開始足以做到這一點嗎？

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，我不認為降息幅度夠大，不會產生太大的影響。事實上，各處都降息了 25 個基點。我的意思是，如果我們——即使我們做了兩到三次，也少於 1%。當我們的聯邦基金利率為 5.5% 時，我認為這還不足以真正激發投資等方面的大量思想興奮。

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.

因此，所有的選舉現在也沒有人知道。我的意思是，有很多戲劇性的事情正在發生。因此，我們只需觀察它的發展情況，然後看看這將如何影響商業情緒。但在目前這個階段，我的預期仍然是——一切都在同一時間說，也許這正是聯準會推動軟貸款的原因。我認為這就是朝這個方向發展的樣子。

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得很好，但目前沒有人試圖積極尋求新業務，我預計第四季甚至可能是第四季。然後我們會看到選舉如何影響政策等等。

Brandon King, Truist Securities.

布蘭登金 (Brandon King)，Truist 證券公司。

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.

因此，據我了解，住宅將在今年下半年引領貸款成長。那麼您能談談您在該類別中看到的需求嗎？人們對住房供應感到擔憂。我知道你們有一個獨特的產品，但請給我們一些背景背景，你們的前景已經推動了今年下半年的成長，以及它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。讓我確保我們已經清楚了。住宅成長將繼續對經濟成長做出持續的貢獻，其速度與上半年到下半年的成長速度相當。我們第三季已經到位的管道將支持這一點。我們可以看到，我們的觀點必然會發生很大的變化。

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 C&I 仍將維持現狀。本季的傑出貢獻者。它會有所放緩，但仍可能對整體成長做出良好貢獻。我們確實提供獨特的產品。一種思考方式是，我們的大多數借款人每 1 美元只借 0.5 美元。因此，根據定義，他們對利率的敏感度與典型的 80% LTV 借款人的利率敏感度一樣。因此，我們在整體發起活動中沒有看到同樣的下滑。我們認為這將繼續存在。

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，我們認為降息或降息不會對前景產生太大影響。那些來到我們這裡追求擁有住房的美國夢的人不會因為 25 個基點的調整而被拒絕或更興奮。

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，我認為您簡要地提到了 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，就您對下半年定價的預期而言，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 Lunar CD 定價驅動因素的大部分為 5.25%。我們今天目前的特別發售利率為 5% 和 4.88%，因此我們預計我們能夠將價格重新調低一些，但這也是 2 月到 3 月大部分活動所經歷的結果的結果。因此，證據將在八月和九月揭曉。我們現在認為，我們擁有具有競爭力的費率，這將使我們能夠管理和維持這些餘額，但我們將在接下來的 45 天內看看效果如何。

Got it. Thanks for taking my questions.

知道了。感謝您回答我的問題。

Timur Braziler, Wells Fargo.

帖木兒·巴西爾，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，採取一系列質疑，堅持對存款的質疑，DDA 內部趨勢的良好逆轉。未來這種情況是否可持續？您是否認為資產負債表中的流動性過剩已經讓我們陷入了低谷？或者是否仍然存在風險，可能在今年年底會有更多的遷移。

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.

我們肯定認為它依賴利率。因此，正如我們之前所說，我們仍然相信，只要利率保持在高位，就會對存款遷移產生增量推動，這在第二季度有所放緩，並且在季度末出現了一些增長，但在降息在開始之前，趨勢仍將是負面遷移。到那時，隨著預期下降，我們認為貨幣市場基金和其他產品的增量將減少吸引力，並導致移民減少，甚至可能穩定，然後逆轉。我們認為這就是我們所看到的模型。但我們也有傳聞稱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，看看選舉的一些不確定性。我只是想知道你們的大中華區客戶是否會因為預計今年年底可能會出現一些不確定性而提前一些活動。我猜你們大中華區客群的溫度計是多少？他們如何看待年底的選舉風險或缺乏選舉風險？

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.

好吧，如果你看看我們的大中華區客戶，我認為——我認為他們對選舉的結果並沒有太大的預期。我的意思是，正如我們所看到的，過去八年在兩個不同政府的領導下已經足夠有趣了，如果你看看2017 年開始徵收的關稅。想出了一些辦法多一點。

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.

所以，如果你看看華美銀行，我們並沒有真正停止發展我們的跨國業務，而且我們在財務表現方面始終優於同業。我認為這一切最終都會歸結為儘管有政治言論，而且當你談到國家安全等問題時，還存在一些美中地緣政治問題。中美之間的普通貨物進出口運輸，確實沒有放緩多少。仍然有很多生意來來回回。

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，絕大多數業務確實是照常。他們不喜歡聽到那些言論。不過，生意還是照常進行。我們發現，我們的許多客戶，無論是大中華地區的進口業務、出口業務，或是所有美國到亞洲地區的客戶，他們都在不斷地來訪。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.

我們東西方公司繼續在這波濤洶湧的大海中航行，並以某種方式了解動態。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。這就是為什麼我們找到了一種獨特的方法來繼續成為一個國家表現最好的銀行之一，因為我們知道我們在做什麼，並且我們將繼續堅持八年。

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.

對其他許多人來說，我們看到了嚴重的動盪，但對我們來說，不知怎的，我們過得還不錯。這是我們對未來四到八年非常有信心的事。我不知道誰會當總統。這對我們來說真的不重要，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，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，讓我談談資本。鑑於您現階段不打算增加更多資本，我們是否應該假設您在完成後重新回購股票？或者您在這個水平上對價格更敏感嗎？那麼您可能正在考慮是否有其他方式返還資本？

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，我們一直都是機會主義和股東友好型的，這些指導原則將在本季保持不變。我認為我們在回購方面相當機會主義。我們沒有充分利用我們剩下的東西。我們還有 4900 萬美元尚未到位，我們將繼續以機會主義的方式看待它。在我們用盡目前的計劃之前，我們不會期望重新授權。因此，我們會及時向您通報最新情況。

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

好的。但現階段除了有機成長之外，您沒有考慮其他類型的資本回報？

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.

我們傳統上每年都會考慮我們的股息，在我們展望 2025 年的預期時，我們顯然會考慮這一點。資本。我們目前沒有考慮任何有意義的併購活動，我們當然會考慮以股東友善的方式利用資本。

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，我認為您在過去兩到三個月內從國家城市聘請了娛樂貸款主管。 （多名發言者）他們對娛樂業的成長做出了貢獻嗎？您希望該垂直領域的貢獻者有多大？或者你在這個垂直領域的極限是什麼？

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，本季我們商業和工業業務成長的主要驅動力之一是娛樂貸款的成長，我認為我們喜歡我們所有的垂直產業，但我們特別喜歡位於洛杉磯地區的娛樂垂直產業。

Dominic, anything you'd care to add?

多明尼克，你還有什麼要補充的嗎？

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，正如我們一直希望擁有的那樣，垂直行業可以繼續保持卓越。但華美銀行非常重視整體風險監理。這就是為什麼如果你回想 2023 年 3 月，我們並沒有遇到像加州其他一些大型銀行那樣的問題。因為我們並沒有過度投資私募股權、創投，並不是說我們不喜歡這個產業。我們熱愛這些業務。我們這些業務做得很好。但我們永遠不會允許我們擴展到某一特定產業，因為當這裡或那裡出現擠兌時，可能會造成傷害。

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.

所以我非常期待娛樂產業能夠繼續成長。不只在美國，在大中華地區也是如此。我們預期娛樂業務將以非常健康的速度成長，但絕不允許其成長過度而變得過度集中。當某一特定產業如此集中時，有一天這可能會引起遺憾。

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 始終經營著非常多元化的投資組合。正如你所看到的，實際上每個季度我們總是有不同的贏家。當克里斯談到這個季度是娛樂性的，下個季度可能又是其他人的時候。很高興看到這些不同的單位都積極競爭以獲得每個季度的冠軍。因此，透過這樣做，我們就不存在過度集中的問題。

Chris McGratty, KBW.

克里斯·麥克格拉蒂，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?

嗯，謝謝。我注意到您在電話中多次談到了對費用收入前景的樂觀態度。是否存在一種可能會進行收購、利用資本來發展業務的情況？

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，去年，克里斯，你會記得該公司對資產管理實體 Reliant 進行了重大投資，我們持有該實體 49% 的股份。當我們坐在這裡時，我們的議程是展望未來。

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，雖然我只有你，但我只是想更好地理解第 6 張幻燈片，你在幻燈片 6 中談到了第一季負利差的 10 億美元現金流對沖，然後是對沖和備份。我們應該如何考慮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，如果您只是查看該頁的頂部，當前的現金流量對沖正在對我們造成影響。每季的影響約為 2,500 萬美元，並將本期淨利差 (NIM) 拉低約 15 個基點。這些對沖措施將在 2025 年第一季到期。

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，降息的影響將會逐漸減弱。但全部金額將從 25 年第一季開始。然後將發生的事情是在今年下半年的某個時候，10 億美元的新對沖將與先前收到的混合平均值一起出現。因此，到 25 年中期，聯準會的利率降至 [4%]，沒有壞處，也沒有犯規。如果它高於那裡，我們將花費一些臨時費用。如果低於該水平，我們將在 25 年下半年開始看到利潤的好處。

Gary Tenner, D.A. Davidson.

坦納，D.A.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.只是想特別詢問 C&I 方面的貸款方面。克里斯，您提到了季度末的激增。我想我沒有聽到你對此發表評論，但想知道在貸款類型、商業目的、借款人的評論方面是否有任何明確的內容，你認為這些評論推動了這種激增。

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個特定的生物技術相關實體的活動增加。我認為我們對波動性感到有點驚訝，但這是積極的。所以我們接受了它，我認為我們已經看到一些活動已經向後移動，這並不完全符合我們的預期。但是，是的，存在一些波動，但儘管如此，我們預計整個第三季和第四季的餘額總額將會成長。

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關於 FHLB 借款的最新想法，您已經取代了 BTFP。這純粹是隨著時間的推移流動性趨勢的函數嗎？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的 CD 上度過這個過渡期。隨著我們繼續看到積極的趨勢，我們已經看到並將繼續看到第三季度以來的積極趨勢，以及更多即將到來的存款方面的新客戶，我們將考慮將這些增量資金用於何處。無論是在聯準會賺取現金還是償還債務。這就是關於推動。所以我們會關注這一點，並且每天都會投入資金。

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 FHLB 的很大一部分未償付，因為我們認為這將成為保持非常強勁的流動性狀況的組成部分。

Samuel Varga, UBS.

塞繆爾·瓦爾加，瑞銀集團。

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.

我只是想回到存款話題上來，您能提供一下私人銀行存款的最新情況嗎？具體來說，我猜它們在過去 12 個月的趨勢如何？然後您預計未來 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。我們的私人銀行業務－客戶參與了我們的定期存款特價活動，並找到了一個積極的地方來放置增量工作餘額。因此，這些餘額總體上有所增長。我們預計，隨著財富管理解決方案整體發展良好，它們可能會繼續成長。當他們進來時，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中。這對我們來說總體上是一個勝利。

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引進新客戶，無論是從理財產品方面的手續費收入角度，或是從存貸款來看，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，考慮到財富管理方面的成果，您能否分享一下有關這項業務的更廣泛的想法？您認為未來幾年財富管理將走向何方？您希望利用市場中哪些顛覆帶來的機會？

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，我們看到了華美銀行的巨大潛力。我們的方法不是試圖快速實現目標，而是花時間以正確的方式進行策略規劃，然後擁有漸進的、可持續的、經常性的和有利可圖的業務類型。

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.

到目前為止進展順利。我的意思是，很多時候人們可能會關注我們整體的理財費收入。從我們整體獲利能力的百分比來看，這確實不是一個很高的水平。但我們正在努力以正確的方式成長。我們看到了迄今為止我們所擁有的客戶群體的巨大機會和潛力。我們看到，這將是一個巨大的機會，不僅在美國，甚至在亞洲地區也有可能。

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。但這只是一個快速建模問題。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？目前其中有多少是浮動利率？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。浮動的都是 SOFR plus 的吉利美 (Ginnie Mae) 浮動浮動，我將其稱為 115 以進行對話。每月經常性現金流為 1.1 至 1.2 億美元。尼爾，顯然有一些可變性。

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.

漂浮物都是傑米漂浮物，所以加上，將其稱為 15 進行對話。每月經常性現金流為 1.1 億至 1.2 億美元，顯然存在一定的波動性。

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?

那麼你是否有即興的，只有第二季購買的證券的收益率？試想一下第三季證券報酬率將走向何方？

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 億美元的固定資金被稱為 5.5 左右，剩下的都是 SOFR 加上 15 左右的浮動資金。

Manan Gosalia, Morgan Stanley.

馬南‧戈薩利亞，摩根士丹利。

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?

我想問一下你們新貸款的利差。一些同行強調，來自銀行和非銀行機構的競爭更加激烈，這給商業與工業利差帶來了壓力。您在自己的投資組合中也看到了這種情況嗎？

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 中看到的大部分資產負債表上的內容通常都處於 SOFR + 250 區域。我不知道，這是我們所做的傳統業務範圍的典型情況，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.

然後在商業房地產方面，您能談談您與借款人的對話情況嗎？我的意思是，您認為從這裡開始的兩到三次降息會減輕他們感受到的一些壓力，特別是在辦公室和多戶家庭方面。最近，您可能已經延期，或者無論哪項啟動項目需要延期，借款人的反應是什麼？他們帶來了更多的股本嗎？只是想在那裡獲得更多顏色。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，我不知道一兩次降息會在短期內產生如此大的影響。因此，如果郵遞區號地區的費率在基本費率的基礎上延長一段時間，則會上漲 [5% 以上]。許多藉款人可能會感到痛苦。其中許多人幾年前就購買了上限為 5% 的項目。因此，這對他們中的許多人來說將是一個挑戰。

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.

我們非常仔細地研究了艾琳和多米尼克，當然也包括我們的信貸團隊和客戶經理等等，一直到弄清楚即將到期的情況、情況、現金流向何處以及償債情況從現在到2025 年底，我們還能對這些需要續訂的客戶做些什麼一直是主要關注點，但我們還要考慮除此之外的事情，以確保我們掌握一切。

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.

因此，我認為簡短的答案是，我們正在採取上述所有措施，以確保我們積極主動並走在前面，這是一個問題。但如果利率下降，不是一兩次降息，而是100到150個基點，事情就會變得更容易。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.

我就補充一下吧。當然辦公的宏觀環境，就是這樣。但對投資組合的持續審查是我們在大流行之前就開始的。我們為借款人所做的努力是為了支持、償還貸款、抵押額外資產等等。因此，今天我認為，如果你看看我們的結果，整個行業的信用品質仍然非常非常好，其中很大一部分是我們幾年前採取的積極行動。

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。更重要的是什麼呢？這是曲線的腹部還是曲線的短端？

Can you reframe the question, Manan?

馬南，你能重新提出這個問題嗎？

Oh, just in term of --

哦，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。是的，我們的絕大多數客戶都是浮動利率借款人，雖然他們可能會解決再融資的需求，但如果可以的話，短期方面將得到最好的滿足。

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。我想將會議轉回給多米尼克發表閉幕詞。

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加入我們的電話會議，我們期待著 10 月再次與您交談。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。