FB Financial Corp (FBK) 2023 Q3 法說會逐字稿

Good morning, and welcome to the FB Financial Corporation's Third Quarter 2023 Earnings Conference Call. Hosting the call today from FB Financial are Chris Holmes, President and Chief Executive Officer; and Michael Mettee, Chief Financial Officer. Also joining the call for the question-and-answer session is Travis Edmondson, Chief Banking Officer.

早安，歡迎參加 FB 金融公司 2023 年第三季財報電話會議。今天主持 FB Financial 電話會議的是總裁兼執行長 Chris Holmes；和財務長邁克爾·梅蒂。首席銀行官 Travis Edmondson 也參加了問答環節。

Please note FB Financial's earnings release, supplemental financial information and this morning's presentation are available on the Investor Relations page of the company's website at www.firstbankonline.com and on the Securities and Exchange Commission's website at www.sec.gov.

請注意，FB Financial 的收益發布、補充財務資訊和今天早上的簡報可在該公司網站 www.firstbankonline.com 的投資者關係頁面以及美國證券交易委員會網站 www.sec.gov 上取得。

Today's call is being recorded and will be available for a replay on FB Financial's website approximately an hour after the conclusion of the call. (Operator Instructions).

今天的電話會議正在錄音，並將在電話會議結束大約一小時後在 FB Financial 網站上重播。 （操作員說明）。

During this presentation, FB Financial made comments, which constitute forward-looking statements under the federal securities laws. Forward-looking statements are based on management's current expectations and assumptions and are subject to risks, uncertainties and other factors that may cause actual results and performance of achievements of FB Financial to differ materially from any results expressed or implied by such forward-looking statements.

在本次演示中，FB Financial 發表了評論，這些評論構成聯邦證券法規定的前瞻性聲明。前瞻性聲明是基於管理層當前的預期和假設，並受到風險、不確定性和其他因素的影響，這些因素可能導致FB Financial 的實際結果和業績表現與此類前瞻性陳述明示或暗示的任何結果存在重大差異。

Many of such factors are beyond FB Financial's ability to control or predict and listeners are cautioned not to put undue reliance on such forward-looking statements. A more detailed description of these and other risks that may cause actual results to materially differ from expectations is contained in FB Financial's periodic and current reports filed with the SEC including FB Financial's most recent Form 10-K.

許多此類因素超出了 FB Financial 的控製或預測能力，請聽眾注意不要過度依賴此類前瞻性陳述。 FB Financial 向 SEC 提交的定期和當前報告（包括 FB Financial 最新的 10-K 表格）中包含對可能導致實際結果與預期存在重大差異的這些風險和其他風險的更詳細描述。

Except as required by law, FB Financial disclaims any obligation to update or revise any forward-looking statements, contained in this presentation, whether as a result of new information, future events or otherwise. In addition, these remarks may include certain non-GAAP financial measures as defined by SEC Regulation G. A presentation of the most directly comparable GAAP financial measures and a reconciliation of the non-GAAP measures to comparable GAAP measures is available in FB Financial's earnings release, supplemental financial information and this morning's presentation, which are available in the Investor Relations page of the company's website at www.firstbankonline.com and on the SEC's website at www.sec.gov.

除法律要求外，FB Financial 不承擔任何更新或修改本簡報中包含的任何前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。此外，這些評論可能包括 SEC G 條例所定義的某些非 GAAP 財務指標。FB Financial 的收益報告中提供了最直接可比較的 GAAP 財務指標的介紹以及非 GAAP 指標與可比較 GAAP 指標的調整表。 、補充財務資訊和今天上午的簡報，可在公司網站www.firstbankonline.com 的投資者關係頁面和SEC 網站www.sec.gov 上取得。

I would now like to turn the presentation over to Chris Holmes, FB Financial's President and CEO.

我現在想將演講交給 FB Financial 總裁兼執行長 Chris Holmes。

All right. Thank you, Jason. Good morning. Thank you all for joining us on the call this morning. We always appreciate your interest in FB Financial. For the quarter, we reported EPS of $0.41 per share and an adjusted EPS of $0.71. We've grown our tangible book value per share, excluding the impact of AOCI at a compound annual growth rate of [14%] since our IPO.

好的。謝謝你，傑森。早安.感謝大家今天早上加入我們的電話會議。我們始終感謝您對 FB Financial 的興趣。本季度，我們報告每股收益為 0.41 美元，調整後每股收益為 0.71 美元。自 IPO 以來，排除 AOCI 的影響，我們每股有形帳面價值的複合年增長率為 [14%]。

In recent quarterly calls, I've discussed priorities of maintaining the strength of the balance sheet and improving internal processes and procedures with the goals of efficiency and scalability. We've made significant progress on both of those priorities.

在最近的季度電話會議中，我討論了維持資產負債表實力以及以提高效率和可擴展性為目標改進內部流程和程序的優先事項。我們在這兩個優先事項上都取得了重大進展。

First, let me talk about the balance sheet. Our capital positions are strong across the board, including a CET1 ratio of 11.8% and a tangible common equity to tangible assets ratio of 9.2% and in doing that, we haven't reclassified any of our available-for-sale securities as held to maturity.

首先，讓我談談資產負債表。我們的資本狀況全面強勁，包括 11.8% 的 CET1 比率和 9.2% 的有形普通股與有形資產比率，為此，我們沒有將任何可供出售證券重新分類為持有到期。

Our capital and reserve levels are prepared for difficult times, but we don't expect the economic conditions to become as severe as our preparation allows for. Our liquidity position, which is detailed on Page 11 of the financial supplement that we provide each quarter continues to be strong. We keep our securities portfolio plus our loans as a percent of deposits near or under 100% to keep from overleveraging our deposit base. If you use that metric to compare banks, you'll find that we have one of the lowest levels of leverage -- often the lowest on our deposit base among our peers. When you consider that our deposit base is quite granular and we make very little use of brokered and internet deposits. This keeps us in a strong liquidity position.

我們的資本和儲備水準已為困難時期做好了準備，但我們預期經濟狀況不會像我們的準備所允許的那樣嚴峻。我們每季提供的財務補充文件第 11 頁詳細介紹了我們的流動性狀況，該狀況仍然強勁。我們將證券投資組合加上貸款佔存款的百分比保持在接近或低於 100%，以避免過度利用我們的存款基礎。如果你用這個指標來比較銀行，你會發現我們是槓桿水平最低的銀行之一——通常是我們同業中存款基礎最低的。當您考慮到我們的存款基礎非常細化並且我們很少使用經紀和互聯網存款。這使我們保持強勁的流動性狀況。

Our credit portfolio continues to perform well, although we did move 1 C&I loan to nonaccrual in the quarter. Outside of that credit, we haven't seen significant changes quarter-to-quarter. Again, we're positioned very well with an ACL of 1.57% of our HFI loan portfolio. We also reduced our CRE and construction exposure over the last 5 quarters. CRE within our long-term tolerance level and construction will be there by the end of the year. And so as we enter the fourth quarter, the balance sheet feels well positioned. We built some momentum there and we're excited about the growth opportunities that lie ahead of us.

儘管我們在本季確實將 1 筆商業和工業貸款轉為非應計貸款，但我們的信貸投資組合繼續表現良好。除此之外，我們還沒有看到季度與季度之間的重大變化。同樣，我們的 ACL 佔 HFI 貸款組合的 1.57%，處於非常有利的位置。過去 5 個季度我們也減少了商業房地產和建築業務的投資。 CRE 在我們的長期容忍水準內，建設將於今年年底實現。因此，當我們進入第四季度時，資產負債表感覺狀況良好。我們在那裡建立了一些勢頭，我們對擺在我們面前的成長機會感到興奮。

From an operational perspective, we feel as strong as we ever have and we're focused on improving profitability and returns. In the late third and early fourth quarter, we executed on pieces of 2 broader initiatives to both increase revenue and reduce expenses. While actions were taken in the third quarter, the majority of the benefit will be felt in the fourth quarter and beyond.

從營運角度來看，我們感覺自己一如既往地強大，我們專注於提高獲利能力和回報。在第三季末和第四季初，我們執行了兩項更廣泛的舉措，以增加收入和減少支出。雖然在第三季採取了行動，但大部分收益將在第四季及以後感受到。

On the revenue side, as you've seen in the earnings release, we executed a securities trade that will lead to improvement in net interest income in Q4 and in 2024, trade also resulted in a pretax loss of $14.2 million in the third quarter and I'll let Michael discuss our strategy there in more detail, but we continue to look for ways to continue to enhance our profitability.

在收入方面，正如您在收益發布中看到的那樣，我們執行了證券交易，這將導致第四季度和2024 年淨利息收入的改善，交易還導致第三季度稅前虧損1,420 萬美元，我將讓麥可更詳細地討論我們的策略，但我們將繼續尋找繼續提高獲利能力的方法。

The margin -- net interest margin has been difficult to forecast over the last several quarters, not only for ourselves but for others as well based on the discussions we've had with our peers. With margins becoming somewhat less volatile because the velocity of change in the variables have slowed, models have been tweaked and in some cases, overhauled and confidence in the forecast is increasing.

根據我們與同業的討論，過去幾季的淨利差很難預測，不僅對我們自己，對其他人也是如此。由於變數變化速度放緩，利潤率的波動性減弱，因此對模型進行了調整，在某些情況下進行了徹底修改，並且對預測的信心正在增強。

Funding costs will continue to increase as long as we remain in this rate environment, but the rate of increase on our deposits has slowed materially and we expect the NIM to remain in the same relative band that we experienced in the last 2 quarters for the next couple of quarters. Again, Michael is going to provide some deeper analysis in his commentary.

只要我們仍處於這種利率環境中，融資成本就會繼續增加，但我們的存款成長率已大幅放緩，我們預計未來淨利差將保持在過去兩個季度的相同相對區間內幾個季度。邁克爾將再次在他的評論中提供一些更深入的分析。

On expenses, and significantly, we reduced our run rate on core banking noninterest expenses by $15 million. The realization of most of those expense savings begins in late October, so we expect a couple of months of benefit in Q4. By mid-January, we anticipated achieving an additional $5 million in annualized expense reductions, so $20 million annualized in total. We currently expect core banking noninterest expenses of $255 million to $260 million in 2024, which compares to third quarter core banking expenses of $66.2 million or $265 million annualized.

在費用方面，我們將核心銀行非利息費用的運作率大幅降低了 1,500 萬美元。大部分費用節省將於 10 月下旬開始實現，因此我們預計第四季將帶來幾個月的效益。到 1 月中旬，我們預計年化費用將再減少 500 萬美元，因此年化費用總計將減少 2,000 萬美元。我們目前預計 2024 年核心銀行非利息支出為 2.55 億美元至 2.6 億美元，而第三季核心銀行支出為 6,620 萬美元，年化支出為 2.65 億美元。

M&A conversations seem to be picking up across the industry, and we're increasingly receiving inbound calls asking to engage in those discussions. As we've said before, we don't believe in acquiring for the sake of growing our asset size, but there are some banks across our geography that we respect and believe would be great cultural and strategic fits. Following our internal efficiency and scalability initiatives over the last couple of years, we're very confident in our ability to effectively execute on M&A should the right opportunities arise.

整個產業的併購對話似乎正在升溫，我們越來越多地收到要求參與這些討論的來電。正如我們之前所說，我們不相信為了擴大資產規模而進行收購，但我們尊重我們所在地區的一些銀行，並相信它們在文化和策略上非常契合。根據過去幾年我們的內部效率和可擴展性計劃，我們對在合適的機會出現時有效執行併購的能力非常有信心。

So to summarize before I hand the call over to Michael, we spent time and resources focused on internal improvements and enhancing our balance sheet. We made ourselves a better placed to bank for our customers, a better place to work for our associates. And in that process, we've improved our operational efficiency. At the same time, we built our capital, maintained strong reserves and put ourselves in a great liquidity position.

因此，總而言之，在我將電話轉交給邁克爾之前，我們花了時間和資源專注於內部改進和增強我們的資產負債表。我們為客戶提供了更好的銀行服務，為我們的員工提供了更好的工作場所。在此過程中，我們提高了營運效率。同時，我們累積了資本，保持了充足的儲備，並使自己處於良好的流動性狀況。

Increasing profitability and returns are in focus for us, and we're ready to execute on attractive opportunities that may come our way.

提高獲利能力和回報是我們的重點，我們已準備好抓住可能出現的有吸引力的機會。

Now I'm going to let Michael go into our financial results in a little more detail.

現在我將讓麥可更詳細地介紹我們的財務表現。

Thank you, Chris, and good morning, everyone. It's a bit of a noisy quarter due to our securities trade and the charges related to our efficiency initiatives. So I'll take a minute to walk through this quarter's core earnings.

謝謝你，克里斯，大家早安。由於我們的證券交易以及與我們的效率計劃相關的費用，這個季度有點吵鬧。因此，我將花一點時間介紹本季的核心收益。

We reported net interest income of $100.9 million. Reported noninterest income was $8 million, adjusting for the $4.2 million loss on sales securities, and $115,000 gain on the sale of OREO. We had core noninterest income of $22.1 million. Of that $22.1 million, $10.1 million came from banking. We reported noninterest expense of $83 million and adjusting for $4.8 million in charges related to the efficiency initiatives. We had core noninterest expense of $78.2 million. Of that $78.2 million, $66.2 million came from banking.

我們報告的淨利息收入為 1.009 億美元。報告的非利息收入為 800 萬美元，調整了銷售證券的 420 萬美元損失以及奧利奧銷售的 115,000 美元收益。我們的核心非利息收入為 2,210 萬美元。在這 2,210 萬美元中，1,010 萬美元來自銀行業。我們報告的非利息支出為 8,300 萬美元，並調整了 480 萬美元與效率措施相關的費用。我們的核心非利息支出為 7,820 萬美元。在這 7,820 萬美元中，6,620 萬美元來自銀行業。

So we delivered consolidated core pretax pre-provision earnings of $45 million and banking core pretax pre-provision earnings of $44.8 million. Going into more detail on net interest income and our margin, I'll touch first on our securities trade. We sold $77 million of securities at a $14.2 million pretax loss at the end of September. So given the timing, we did not see any real benefit to net interest income in the third quarter from that transaction.

因此，我們實現了 4,500 萬美元的綜合核心稅前撥備前獲利，以及 4,480 萬美元的銀行核心稅前撥備前獲利。要更詳細地了解淨利息收入和我們的保證金，我將首先談論我們的證券交易。 9 月底，我們出售了 7,700 萬美元的證券，稅前虧損為 1,420 萬美元。因此，鑑於時間安排，我們沒有看到該交易對第三季淨利息收入有任何實際好處。

The trade should deliver approximately $4 million in additional net interest income annually. At this point, we're continually examining how we can increase our yield on our liquidity. We would be comfortable with another loss in the $10 million to $20 million range as the trade met our parameters on earn back, expected duration, earnings accretion and capital dilution. We wouldn't do a trade that would not meet our parameters as there will be many options to deploy capital over the next couple of quarters.

該交易每年應帶來約 400 萬美元的額外淨利息收入。目前，我們正在不斷研究如何提高流動性收益率。由於交易符合我們的獲利回籠、預期期限、收益增值和資本稀釋參數，因此我們可以接受 1,000 萬至 2,000 萬美元的損失。我們不會進行不符合我們參數的交易，因為在接下來的幾個季度將有很多選擇來部署資本。

Next, our contractual yield on loans increased by 16 basis points during the quarter to 6.32%. For the month of September, our contractual yield on loans held was 6.35%, yield on new commitments for the month of September were coming in a little over 8%. Remember, 48% of our loan portfolio remains floating rate, which leaves $4.9 billion in fixed rate loans. Of that $4.9 billion of fixed rate loans, we have about $200 million maturing in the fourth quarter at a yield of about 6.7%, $300 million maturing in the first half of 2024 with a yield of 6.05% and about $175 million maturing in the second half of '24 with a yield of 5.65%. So about $680 million maturing through year-end 2024 at a weighted average yield of about 6.13%.

接下來，我們的貸款合約收益率在本季增加了 16 個基點，達到 6.32%。 9 月份，我們持有的貸款合約收益率為 6.35%，9 月份新承諾收益率略高於 8%。請記住，我們的貸款組合中有 48% 仍然是浮動利率，剩下 49 億美元是固定利率貸款。在這49 億美元的固定利率貸款中，約有2 億美元在第四季到期，收益率約為6.7%，3 億美元在2024 年上半年到期，收益率為6.05%，約1.75 億美元 在下半年到期。24 年的一半，收益率為 5.65%。因此，到 2024 年底，約有 6.8 億美元到期，加權平均收益率約為 6.13%。

Cost of deposits continue to rise. But as Chris mentioned, we've seen that rate of increase moderate recently. For the quarter, our cost of interest-bearing deposits increased by 27 basis points to 3.33%. For the month of July, August and September, our cost of interest-bearing deposits was 3.2%, 3.43% and 3.35%, respectively. Incremental interest-bearing deposits for the month of September were coming on to the balance sheet at around 3.6%.

存款成本持續上升。但正如克里斯所提到的，我們最近看到成長率溫和。本季度，我們的計息存款成本上升 27 個基點至 3.33%。 7月、8月及9月，我們的計息存款成本分別為3.2%、3.43%及3.35%。 9月計息存款增量進入資產負債表，約3.6%。

As a reminder, we'll have public funds accounts begin to build in the fourth quarter. We would expect $400 million to $500 million to come back onto the balance sheet in the fourth quarter with a cost of a little over 5%. Those gives and takes left our margin for the quarter at 3.42%, effectively flat for the second quarter. With all the moving pieces that I laid out above, we anticipate margin being in the 3.30% to 3.40% range for the next couple of quarters.

提醒一下，我們將在第四季開始建立公共資金帳戶。我們預計第四季將有 4 億至 5 億美元回到資產負債表上，成本略高於 5%。這些付出和索取使我們本季的利潤率為 3.42%，與第二季基本持平。考慮到我上面列出的所有變動因素，我們預計未來幾季的利潤率將在 3.30% 至 3.40% 的範圍內。

Moving to noninterest income. Nonmortgage, noninterest income continues to perform in the $10 million to $11 million range, and we expect that to remain in the band, plus or minus the next few quarters. Our noninterest expense also needs more explanation than is typical at this quarter. At this point, we've taken $15 million in annual expenses out of our run rate, most of which occurred in September and early October. We've also acted on an additional $5 million in annual expense reduction that will be realized by the end of January. These reductions have come through a combination of a voluntary early retirement program and some position eliminations, reduction of redundant processes, limiting utilization of professional services and contract renegotiations and cancellations.

轉向非利息收入。非抵押貸款、非利息收入持續保持在 1,000 萬美元至 1,100 萬美元的範圍內，我們預計無論未來幾季的正負，該收入仍將保持在這一區間。我們的非利息支出還需要比本季典型支出更多的解釋。至此，我們已從營運費用中扣除了 1500 萬美元的年度費用，其中大部分發生在 9 月和 10 月初。我們還採取了額外 500 萬美元年度開支削減措施，將於 1 月底實現。這些削減是透過自願提前退休計劃和一些職位取消、減少冗餘流程、限制專業服務的使用以及合約重新談判和取消相結合實現的。

Most of the expense reductions still to be realized will come from a closure of 7 branches, which we have communicated internally and to customers. For the fourth quarter, we expect banking noninterest expense to be in the $64 million to $66 million range and for 2024, we anticipate annual banking noninterest expenses of $255 million to $260 million. To achieve this reduction, we took a $4.8 million in charges in the third quarter in connection with the early retirement program and related severance costs. We also took $1.4 million in charges related to this project in the second quarter. So we're at about $6.2 million so far.

仍有待實現的大部分費用削減將來自關閉 7 家分支機構，我們已在內部和客戶中進行了溝通。對於第四季度，我們預計銀行業非利息支出將在 6,400 萬美元至 6,600 萬美元之間，而到 2024 年，我們預計年度銀行業非利息支出將在 2.55 億美元至 2.6 億美元之間。為了實現這一減少，我們在第三季收取了 480 萬美元的與提前退休計畫和相關遣散費相關的費用。第二季我們還收取了 140 萬美元與該項目相關的費用。到目前為止，我們的資金約為 620 萬美元。

We anticipate an additional $5 million to $7 million in charges through the fourth and first quarters as we continue our focus on efficiency and profitability. On the ACL and credit quality, our ACL net loans held for investment increased by 6 basis points for the quarter or a $5.5 million increase in the allowance. Much of that $5.5 million was related to the specific reserve on the credit that Chris mentioned earlier. That credit was also almost entirely responsible for our $10.4 million increase in nonperforming loans held for investment this quarter. Excluding this credit, our ACL to loans held for investment would have remained roughly flat as economic indicators remained in line with the prior quarter.

隨著我們繼續關注效率和盈利能力，我們預計第四季度和第一季將額外增加 500 萬至 700 萬美元的費用。在 ACL 和信貸品質方面，本季我們的 ACL 投資淨貸款增加了 6 個基點，即準備金增加了 550 萬美元。這 550 萬美元中的大部分與克里斯之前提到的信貸特定準備金有關。本季用於投資的不良貸款增加了 1,040 萬美元，幾乎完全是由這筆信貸造成的。排除這筆信貸，我們的 ACL 為投資而持有的貸款將大致持平，因為經濟指標與上一季保持一致。

I'll close by speaking to the progress that we've made in the past year on our recent priorities of balance sheet strength through liquidity and capital management. In the past 12 months, we've increased our TCE to tangible assets by 60 basis points and total risk-based capital by 110 basis points. Our loan to deposits have declined from 91% to 87%.

最後，我將談談我們在過去一年中透過流動性和資本管理加強資產負債表的近期優先事項所取得的進展。在過去 12 個月中，我們將有形資產的 TCE 提高了 60 個基點，將風險資本總額提高了 110 個基點。我們的貸存比從 91% 下降到 87%。

Our construction development bank level Tier 1 capital plus allowance has declined from 124% to 104% and will continue to move lower and closer to our long-term operating target for that ratio of 85% to 90%. On balance sheet liquidity to tangible assets has increased from 7.4% 12 months ago to 11% today, and we have grown our available sources of liquidity from $6.2 billion in the third quarter of 2022 to $6.8 billion today. As Chris said, we feel very well prepared for any economic downturn and our current view is that any downturn we experience will be milder than what we have prepared for.

我們的建設發展銀行一級資本加備抵已從124%下降至104%，並將繼續降低並接近我們85%至90%的長期營運目標。資產負債表上有形資產的流動性從 12 個月前的 7.4% 增加到今天的 11%，我們的可用流動性來源從 2022 年第三季的 62 億美元增加到今天的 68 億美元。正如克里斯所說，我們對任何經濟衰退都做好了充分準備，而我們目前的觀點是，我們經歷的任何衰退都會比我們準備的要溫和。

I'll now turn the call back over to Chris.

我現在將把電話轉回給克里斯。

All right. Thanks, Michael, for that color. And to summarize, before going into questions, our balance sheet situated in a position of strength. We're focused on improving profitability and returns. We're excited about the future. And from a financial perspective, we feel very prepared to execute on any opportunities that may come our way. So both financially and operationally.

好的。謝謝邁克爾，給我這種顏色。總結一下，在提出問題之前，我們的資產負債表處於強勢地位。我們專注於提高獲利能力和回報。我們對未來感到興奮。從財務角度來看，我們已經做好充分準備來抓住可能出現的任何機會。所以無論是在財務上還是在營運上。

So that concludes our prepared remarks. Again, thank you for your interest. And operator, we'll open up the lines for questions.

我們準備好的發言就到此結束。再次感謝您的關注。接線員，我們將開放提問熱線。

(Operator Instructions) Our first question comes from Stephen Scouten from Piper Sandler.

（操作員說明）我們的第一個問題來自 Piper Sandler 的 Stephen Scouten。

I wanted to get some more information on the security sale. I think last quarter, you had said kind of bands you were looking at was 9 to 27 months on the earn back. It looks like this is a little higher than that. Kind of curious a couple of things, what sort of securities did you reinvest in it that 643 yield? And maybe what did you sell that kind of precipitated that longer earn back where the -- was it a longer duration portion of your securities book. That would be helpful.

我想獲得有關證券銷售的更多資訊。我想上個季度，您曾說過您正在尋找的樂團需要 9 至 27 個月的獲利回報。看起來這個比那個高一點。有幾件事有點好奇，你將 643 收益再投資於哪一種證券？也許你賣掉了什麼，可以長期賺取回報——它是你的證券帳簿中較長期限的部分。那會有幫助的。

Yes, Stephen, yes, it was a little bit longer. It's a little over a 3-year earn back. And -- and so what we -- as we went through the process, we thought about even if rates move down 300 basis points, the securities we sold, which are mostly mortgages and some CMOs would be with us in any rate environment. So that have extended out so far that it just made sense to kind of get rid of the dogs as I'm calling them internally. Reinvestment of some agency, government agency stuff, FHLB type paper and so that's where the yield came from, although we are seeing kind of current market securities all in that range. It's all well within our guidelines and duration, not any extra credit risk there.

是的，史蒂芬，是的，有點長。 3年多一點的回報。因此，當我們經歷這個過程時，我們想到即使利率下降 300 個基點，我們出售的證券（主要是抵押貸款和一些 CMO）在任何利率環境下都將與我們同在。因此，這種情況已經延續至今，以至於擺脫我在內部稱呼它們的狗是有意義的。對一些機構、政府機構的東西、FHLB 類型的文件進行再投資，這就是收益率的來源，儘管我們看到當前的市場證券都在這個範圍內。這一切都在我們的指導方針和期限內，沒有任何額外的信用風險。

Okay. That's helpful. And then maybe thinking about just that 1 C&I credit that you noted that kind of encapsulate a lot of the move into credit metrics. Any additional information you can give us there, kind of what sector that is and if there's any kind of lingering issues along the same lines and then the other similar sectors?

好的。這很有幫助。然後也許想想您提到的 1 C&I 信用，這種信用概括了信用指標的許多變化。您可以向我們提供任何其他資訊嗎？這是什麼部門，以及其他類似部門是否存在任何類似的揮之不去的問題？

Sure, Stephen. It's Chris. And Travis Edmondson, our Chief Banking Officer in here with us as well. So as I mean just make a comment. It's a C&I credit you're familiar with a bankrupt -- there was a bankruptcy that reportedly was Mountain Express. We are not involved in that credit as you guys, I think, no, we were not involved in that at all. We do have a client of which that bankruptcy, they was a vendor to that client. And so that was the 1 C&I credit roughly at $10 million credit for us. And it is actually pretty well secured and has guarantors on it as just about all of our credits of that type due. But once it goes into bankruptcy, we're fairly conservative and this is not, but there's a major vendor that is, in bankruptcy.

當然，史蒂芬。是克里斯。我們的首席銀行官特拉維斯·埃德蒙森（Travis Edmondson）也和我們在一起。正如我的意思，只是發表評論。這是你所熟悉的破產企業的 C&I 信貸——據報道，Mountain Express 破產了。我們沒有像你們那樣參與這種信用，我想，不，我們根本沒有參與其中。我們確實有一個破產的客戶，他們是該客戶的供應商。這就是我們獲得的約 1000 萬美元的 1 C&I 信貸。事實上，它的安全性非常好，並且有擔保人，因為我們幾乎所有此類信用都到期了。但一旦它破產了，我們就相當保守了，這不是，但有一個主要供應商正在破產。

And so we are fairly conservative with how we handle those. And so we went ahead and just put it on nonaccrual and took some extra reserve on it, even though we are pretty optimistic on it.

因此，我們對處理這些問題的方式相當保守。因此，我們繼續將其計為非應計利息，並採取了一些額外的準備金，儘管我們對此非常樂觀。

Got it. Okay. And I know -- I think Michael said no real changes in your ACL kind of mindset and an underlying economic scenarios, but obviously, you took the reserve up even in light of only 2 basis points of charge-offs. So it feels like a lot -- most of that is really just conservatism on your end. And you never know what you don't know is coming down the pipe. Is that the right way to think about it? Or would we expect additional reserve build moving forward?

知道了。好的。我知道——我認為邁克爾說你的 ACL 心態和基本經濟情景沒有真正改變，但顯然，即使沖銷只有 2 個基點，你也提高了準備金。所以感覺很多——其中大部分實際上只是你的保守主義。你永遠不知道什麼是你不知道的。這是正確的思考方式嗎？或者我們預計未來還會有更多的儲備建設？

Yes.

是的。

Go ahead.

前進。

Well, I think we're well positioned, Stephen, and I think this range. It didn't move up because of the credit we're talking about individually evaluated loan. But I think you'll sort of stay in this range. We feel comfortable with where we are. And like I said, we haven't seen a deterioration in the portfolio. And so right now, that $155 million range where we've been is likely where we'll stay.

嗯，我認為我們處於有利位置，史蒂芬，我認為這個範圍。由於我們談論的是單獨評估的貸款，它沒有上升。但我認為你會保持在這個範圍內。我們對自己所處的位置感到很舒服。正如我所說，我們沒有看到投資組合出現惡化。因此，目前我們可能會繼續維持 1.55 億美元的區間。

Stephen, I would just add and Michael and I both alluded to this in comments, both our capital levels and reserve, we're prepared for difficulties moving forward. We don't really actually expect things to get that difficult. But our preparation allows for things to get more difficult than we anticipate they will.

史蒂芬，我想補充一點，邁克爾和我都在評論中提到了這一點，無論是我們的資本水平還是儲備，我們都為前進的困難做好了準備。我們實際上並不認為事情會變得那麼困難。但我們的準備工作讓事情變得比我們預期的更加困難。

The next question comes from Catherine Mealor from KBW.

下一個問題來自 KBW 的 Catherine Mealor。

I just wanted to ask about your outlook for balance sheet growth. You've been really conservative on your outlook for loan growth over the past couple of quarters. And sell loans pull back again this quarter. Just curious how many more quarters your gut would be that we'll see a decline in loan balances before we kind of hit that inflection and start to see growth again?

我只是想問一下你們對資產負債表成長的前景。在過去的幾個季度中，您對貸款成長的前景非常保守。而銷售貸款本季再次回落。只是好奇你的直覺是，在我們遇到這種轉折點並開始再次看到成長之前，我們還會看到貸款餘額下降多少個季度？

Yes. So Catherine, just a couple of comments. You're right. We have been conservative on the loan growth side. And we've said right now for us, and I talked about -- when I was talking about the liquidity, not overleveraging our deposit base. And so that's a real governor for us. And so we have been conservative on that side. We still see opportunities and we still see some growth. But remember, we're also taking balances down, particularly in our construction portfolio and we're not growing our overall CRE portfolio.

是的。凱瑟琳，我只想說幾點意見。你說得對。我們在貸款成長方面一直持保守態度。我們現在已經說過了，當我談論流動性時，我談到了不要過度利用我們的存款基礎。所以這對我們來說是真正的州長。所以我們在這方面一直很保守。我們仍然看到機會，仍然看到一些成長。但請記住，我們也在減少餘額，特別是在我們的建築投資組合中，而且我們並沒有增加整個商業房地產投資組合。

So when you put those dynamics in there, it's going to probably be muted for another quarter, maybe 2, but we do expect some growth in '24. And so -- and again, I'll come on C&I and we'll be in a different position. Also, it also depends on economic circumstances. And we'd like to see clear through interest rate increases and we'd like to see clear through not seeing significant economic deterioration into some kind of drawn-out recession.

因此，當你把這些動態放在那裡時，它可能會在另一個季度（也許是 2 個季度）內保持沉默，但我們確實預計 24 年會出現一些增長。所以——再一次，我將加入 C&I，我們將處於不同的位置。另外，這也取決於經濟狀況。我們希望透過升息來清楚地看到這一點，並且我們希望透過不看到經濟嚴重惡化而導致某種曠日持久的衰退來清楚地看到這一點。

So Travis, is that -- do you have anything to add to that?

崔維斯，您還有什麼要補充的嗎？

Catherine, not to talk to you nothing much to add to that. I think you're spot on. We still have a lot of opportunities in our markets. We're in a lot of growth markets, Birmingham, Huntsville, Memphis, Knoxville, and the list goes on and on. It's more of a self-imposed governor at this point and when we decide that the economies looks better for us, where we can see more clearly into the future, we will turn on some more growth initiatives internally.

凱瑟琳，不是跟你說話，沒什麼好補充的。我認為你說得對。我們的市場仍然有很多機會。我們在許多成長型市場，伯明罕、亨茨維爾、孟菲斯、諾克斯維爾，這樣的例子不勝枚舉。此時，它更像是一個自我強加的管理者，當我們認為經濟對我們來說看起來更好時，我們可以更清楚地看到未來，我們將在內部啟動更多成長計畫。

Are you seeing opportunities on the C&I side? It seems like your -- you talked about construction and CRE that you're really not lending in right now. Can you just kind of talk generally about what the landscape is in C&I lending today?

您是否看到 C&I 方面的機會？看來你談到了建築業和商業房地產，但你現在確實沒有貸款。您能否籠統地談談當今工商業貸款的情況？

Yes. We're seeing a lot of opportunity. Of course, there's a lot of competition in that space today. A lot of other institutions are derisking their balance sheet similar to what we're doing. But we're seeing a lot of opportunities and we've actually grown committed balances in the C&I space by a little over $100 million last quarter. So we continue to really engage in that space and we're seeing some positive momentum.

是的。我們看到了很多機會。當然，如今該領域的競爭非常激烈。許多其他機構正在降低其資產負債表的風險，類似於我們正在做的事情。但我們看到了很多機會，而且上個季度我們在 C&I 領域的承諾餘額實際上增加了 1 億多美元。因此，我們繼續真正參與該領域，並看到了一些積極的勢頭。

Okay. Great. And then on the deposit side, your NIM guide was really helpful and seems like we're stabilizing, which is great. Can you just talk about just the incremental cost of deposits and just kind of what you're seeing within the behavior of your clients, maybe one, where you're seeing the most -- maybe the most stressed in terms of higher deposit costs versus where things are really starting to ease, maybe in product or kind of deposit type.

好的。偉大的。然後在存款方面，你們的 NIM 指南非常有幫助，而且看起來我們正在穩定下來，這很棒。您能否只談談存款的增量成本，以及您在客戶行為中看到的情況，也許是您在客戶行為中看到最多的地方- 也許是在較高的存款成本與其他客戶的關係方面壓力最大的地方事情確實開始緩解，也許是在產品或存款類型方面。

Catherine, it's Michael. I'll start and then Travis can jump in. I mentioned public funds, most of our deposit outflows in the third quarter were down $230 million, but $300 million outflows in public funds, so that all of it centered around that. As those come back on, I mentioned 5% range, those are mostly expected to be Fed funds minus a little bit. So highly competitive, expecting full market rates their large customers, commercial, corporate are expecting 5-plus percent on deposits you getting large balances.

凱瑟琳，這是麥可。我先開始，然後崔維斯可以插話。我提到了公共基金，第三季我們的大部分存款流出減少了2.3 億美元，但公共基金流出了3 億美元，所以所有的內容都圍繞著這一點。當這些回來時，我提到了 5% 的範圍，這些大部分預計是聯邦基金減去一點。競爭如此激烈，他們的大客戶、商業、企業期望獲得完整的市場利率，他們期望存款利率達到 5% 以上，從而獲得大額餘額。

The challenge we face, and I know we've talked about this before, as you look across our footprint, tackets of banks, whether they're community banks or smaller or some of the larger institutions, the community banks have CDs priced at 5.75 or 6 months, right? And so that's impacting our retail. And then you get the money market and stuff that's still over 5%. What we've seen is because the velocity of rate increases have slowed that the constant request for repricing has moderated. And so that's been a benefit. And as long as there's stability, I think you continue to see that. But new deposits, new customers, they expect market rates.

我們面臨的挑戰，我知道我們之前已經討論過這個問題，當你看看我們的足跡、銀行的策略時，無論它們是社區銀行還是較小的或一些較大的機構，社區銀行的CD 定價為5.75或6個月，對吧？這正在影響我們的零售業。然後你會看到貨幣市場和仍然超過 5% 的東西。我們所看到的是，由於利率上漲的速度已經放緩，對重新定價的持續要求已經放緩。所以這是一個好處。只要存在穩定，我想你就會繼續看到這一點。但新存款、新客戶，他們期望的是市場利率。

Correct. Just one quick thing to add. A lot of the people this time last year were chasing yields where they could get much higher yield, right? We're talking from 1% to 4%, it's been somewhat stabilized over the last few quarters, where you might go from 5.25% to 5.75% and there's not as many people chasing that incremental yield in the footprint. So that's helped us a little bit.

正確的。只需要快速添加一件事。去年這個時候，很多人都在追逐可以獲得更高收益的報酬率，對嗎？我們談論的是從 1% 到 4%，在過去幾季中已經有所穩定，你可能會從 5.25% 上升到 5.75%，並且沒有那麼多人追求足跡中的增量收益。這對我們有一點幫助。

That's great. Go ahead, Chris.

那太棒了。繼續吧，克里斯。

Yes, I want to make one -- so as we look forward, as Michael said, the velocity of change has really slowed. One of the key variables for us over the next 2 quarters, I'd say, is public funds and that the flow in and out of public funds sometimes we see -- not sometimes all the time, we see a flow out of in the second quarter, that's a combination of the way the funds come into most of our public entities as well as some folks making a market share play for reporting purposes and then they come back in the third and fourth quarter, and those tend to be when they come back in there at higher, those are some of our highest priced. And so we're going to manage through that in the third and fourth quarter.

是的，我想做一個——所以當我們展望未來時，正如邁克爾所說，變化的速度確實放緩了。我想說，我們未來兩個季度的關鍵變數之一是公共資金，有時我們會看到公共資金的流入和流出，但有時並非總是如此，我們會看到公共資金的流出第二季度，這是資金進入我們大多數公共實體以及一些出於報告目的而爭奪市場份額的人的方式的結合，然後他們在第三和第四季度回來，而這些往往是當他們以更高的價格回來，這些是我們價格最高的一些。因此，我們將在第三和第四季解決這個問題。

So it's really a function of your public funds that are driving some modest but more margin pressure in the back half of the year more so than your retail and kind of core customer base? Would that be a fair comment?

那麼，這確實是你們的公共基金的一個功能，在今年下半年推動了一些溫和但更大的利潤壓力，比你們的零售和核心客戶群更重要？這是一個公平的評論嗎？

That's right. Exactly.

這是正確的。確切地。

The next question comes from Brett Rabatin from Hovde Group.

下一個問題來自 Hovde Group 的 Brett Rabatin。

I wanted to start off, it's call tribal season. And I know you guys followed that quite a bit. And I know there's been some desire to get FBK back in the college playoffs, so to speak. And so I wanted to ask, you've obviously taken some actions here in 3Q on offense and defense with the securities portfolio and the expenses, wanted to see what else you might be considering doing to get back in the playoffs in '24? Or if you feel like what you've done is kind of what you're able to do? And if maybe up in the playoffs in '25 instead.

我想開始，現在是部落季節。我知道你們很關注這一點。我知道有人希望 FBK 重返大學季後賽，可以這麼說。所以我想問，你顯然在第三季在進攻和防守方面對證券投資組合和費用採取了一些行動，想看看你還可能考慮做什麼來在 24 年重返季後賽？或者如果你覺得你所做的事情是你能夠做到的？如果可能在 25 年進入季後賽的話。

Yes. Brett, this is Chris. You're right, it is college football season, we are fans and we do have the Monday morning ribbing of everybody that's only losing in. So it's no final Monday morning hear out here when you lose -- and it's no fun day in and day out when you lose in banking relative to how we perform. And so -- if you go back and look at our historical performance, it doesn't just go back actually 2 or 3 years, if you go back to when we start the call, we talk about where our compound annual growth rate of our book value -- of the tangible book value of our stock is. Since we become a public company, we go back and we actually look further back than that and we've always been a premier performer. And we -- that's one of our key foundational tenants here is we're going to be in a lead performer.

是的。布雷特，這是克里斯。你是對的，這是大學橄欖球賽季，我們是球迷，我們確實會在周一早上嘲笑每個只輸了比賽的人。所以這不是最後一個週一早上，當你輸球時，聽聽這裡——這不是有趣的一天當你在銀行業相對於我們的表現而遭受損失時。因此，如果你回顧一下我們的歷史表現，你會發現它實際上不僅僅是 2 或 3 年，如果你回顧一下我們開始通話時，我們會討論我們的複合年增長率賬面價值——我們股票的有形帳面價值。自從我們成為上市公司以來，我們回顧過去，實際上我們回顧的更遠，我們一直是表現最好的公司。我們——這是我們的關鍵基礎租戶之一，我們將成為領先者。

We did over the last I'll say, 4 quarters or so, 4, 5 quarters, said, hey, there are some things that we need to do to make sure that we have the scalability of the company and the foundations of the company where they need to be. So we spent some money, which we knew would hurt our performance. And we have taken -- as we say, we took our foot off the accelerator, we've done some things and what we feel hopefully, you're beginning to hear when we talk about our confidence moving forward and we talk about some momentum moving forward.

我們過去做了四個季度左右，四個、五個季度，說，嘿，我們需要做一些事情來確保我們擁有公司的可擴展性和公司的基礎他們需要去哪裡。所以我們花了一些錢，我們知道這會損害我們的表現。我們已經採取了——正如我們所說，我們把腳從加速器上鬆開了，我們做了一些事情，我們希望看到什麼，當我們談論我們前進的信心和我們談論一些動力時，你開始聽到向前進。

We are -- we'll be back in the playoffs and competing for the championship. And so that's game on from our standpoint, just keeping with your metaphor there, it's game on from our standpoint, you saw improvement last quarter that was meaningful. You see improvement -- some improvement this quarter that was meaningful. You see the steps that are already going to improve next quarter in '24. And so we have -- we continue to generate leverage. When we talk about strengthening our balance sheet. What we're doing is creating levers that we can pull as we go through '24 to improve our profitability and make sure our returns are where we wanted to be. We're shareholders and those returns are -- they have -- our bar is higher than any of the investors out there. Our internal bars higher than any of the investors. And so again, we appreciate the metaphor and we are play off the caliber at this point and competing for the (inaudible).

我們——我們將重返季後賽並爭奪冠軍。因此，從我們的角度來看，這就是遊戲，只是與你的比喻保持一致，從我們的角度來看，這就是遊戲，你看到上個季度的進步是有意義的。你會看到進步——本季的一些進步是有意義的。您將看到 24 年下個季度已經改進的步驟。因此，我們繼續發揮槓桿作用。當我們談論加強我們的資產負債表時。我們正在做的是創造我們可以在「24」期間拉動的槓桿，以提高我們的盈利能力並確保我們的回報達到我們想要的水平。我們是股東，我們的回報標準比任何投資者都高。我們的內部門門檻比任何投資人都高。再次，我們欣賞這個比喻，我們在這一點上發揮了水平並競爭（聽不清楚）。

That's good to hear. It sounds like you're expecting '24 to be lot improved, so that's good to hear. I wanted to ask back on credit. You've got the slide in the deck about the office portfolio. But I'm actually curious, it's slightly smaller, but wanted to ask actually about hotels. And just if we have any kind of consumer-driven weakness in the next year, 18 months would seem like hotels might actually be somewhat at risk. And so I was curious if you guys have done any work on RevPAR or occupancy cushions for the hotel portfolio and maybe how you think about that book?

聽起來還不錯。聽起來你期待 '24 會有很大改進，所以很高興聽到這個消息。我想賒帳問一下。您已經在幻燈片中看到了有關辦公室投資組合的幻燈片。但我其實很好奇，它有點小，但實際上想問關於酒店的情況。如果明年出現任何由消費者驅動的疲軟，那麼 18 個月後飯店實際上可能會面臨一定的風險。所以我很好奇你們是否對飯店組合的 RevPAR 或入住率緩衝做過任何工作，也許你們對這本書有何看法？

Yes. So we do have a hotel book. Again, that one also is not outsized for us in terms of where it sits kind of on a comparative basis. I don't have those specific stats and we don't have our key credit offer with us today. But we have been watching hotel and we frankly haven't been doing much new there over the last couple of years for all the things that you just mentioned. We do have a few, but when we're pretty much restricted to really strong flags in nice and good areas. We've got some suburban stuff -- we don't -- we do have a little bit of central business district, hotel stuff, but I tried something that I'm thinking the ones I can think of, we've got a Hampton in the central business district but it's that type of flag if we've got that so..

是的。所以我們確實有一本酒店預訂單。同樣，從比較的角度來看，這對我們來說也不算太大。我沒有這些具體的統計數據，我們今天也沒有關鍵的信貸優惠。但我們一直在關注酒店，坦白說，在過去的幾年裡，我們並沒有為您剛才提到的所有事情做太多新的事情。我們確實有一些，但是當我們幾乎僅限於在漂亮和良好的區域中使用真正強大的旗幟時。我們有一些郊區的東西——我們沒有——我們確實有一些中央商務區、酒店的東西，但我嘗試了一些我能想到的東西，我們有一個漢普頓位於中央商務區，但如果我們有這樣的旗幟，就是那種旗幟。

Brett, this is Travis. One other thing I would add is it wasn't too long ago, it was the pandemic where hotels were on everybody's mind. And we did a thorough analysis during that time frame to make sure that our borrowers were able to withstand that pandemic. And what we found was we have very strong borrowers in this asset class that did everything that they said they were going to do. We continue to monitor that portfolio. We're not seeing any struggles to date on RevPAR. We are mindful as the consumer spending goes down in '24, that's something we need to definitely keep our eye on. But no alarms at this time.

布雷特，這是崔維斯。我要補充的另一件事是，不久前，正值疫情期間，每個人都在考慮飯店。我們在這段時間內進行了徹底的分析，以確保我們的借款人能夠抵禦這場流行病。我們發現，在這個資產類別中，我們有非常強大的借款人，他們做了他們所說的一切。我們將繼續監控該投資組合。到目前為止，我們還沒有看到 RevPAR 出現任何問題。我們注意到，隨著 24 年消費者支出的下降，這是我們絕對需要密切關注的事情。但此時沒有警報。

Yes and Michael, I would just remind me. We have done in the last, say, a year, 18 months. One, again, I guess I can say it's a Hilton and it's -- we just fantastic parameters around it. That has -- we had extremely high expectations for it, and it's crashed the room. And so it's -- again, that's the only one we've done here very recently. So...

是的，還有邁克爾，我只想提醒我。我們在過去一年 18 個月完成了這些工作。再說一次，我想我可以說這是一家希爾頓酒店，而且我們只是圍繞它提供了非常棒的參數。我們對它抱有極高的期望，結果讓整個房間都崩潰了。所以這也是我們最近在這裡所做的唯一一件事。所以...

Okay. If I could sneak in one last one just around M&A. And Chris, it sounds like you're more interested in expansion if it makes sense strategically. And so I think everyone in the environment realizes that's kind of the tough thing is the marks on the balance sheet. Can you guys talk about or maybe Chris, just how you think about dilution to tangible book or what kind of parameters would be acceptable to you relative to an opportunity?

好的。如果我能在併購前後偷偷溜進最後一篇就好了。克里斯，聽起來你對擴張更感興趣，如果它在戰略上有意義的話。所以我認為環境中的每個人都意識到資產負債表上的標記是一件困難的事情。你們能談談或克里斯，您如何看待有形帳面的稀釋，或相對於機會，您可以接受什麼樣的參數？

Yes. Brett, Certainly, there's a lot -- there's conversations that seem to be picking up and seem to be a lot of that going on. I think folks are thinking. I think '24 is going to force a lot of that. And I know it is forcing a lot of that. And I think folks are having to think strategically. And the landscape continues to change and I think you have to think more and more strategically. As we think about it, and I made this comment, we only think about it strategically. So we don't -- we're not thinking about just asset size, unless it makes really good strategic sense for us, we don't engage in a deep way. And so -- and then when we think -- so when we think about it, it's going to be strategic. And usually, those aren't going to be I'll call them tangible book value type deals because they're going to be valuable properties.

是的。布雷特，當然，有很多——一些對話似乎正在升溫，而且似乎有很多這樣的事情正在進行。我想人們正在思考。我認為 24 將會迫使很多人這樣做。我知道這在很大程度上迫使我們這樣做。我認為人們必須進行策略性思考。情況不斷變化，我認為你必須越來越有策略地思考。當我們思考這個問題時，我發表了這一評論，我們只是從戰略上考慮它。所以我們不會——我們不僅僅考慮資產規模，除非它對我們來說確實具有良好的戰略意義，否則我們不會深入參與。所以——然後當我們思考——所以當我們思考它時，這將是戰略性的。通常，這些不會成為有形帳面價值類型的交易，因為它們將是有價值的財產。

And so we've always thought about it as a 3-year earn back is kind of the -- where we draw the line. I will tell you one of the most frustrating things that I deal with is because we say that on this call and therefore, investment bankers hear that, and so they just automatically go out and calculate on a 3-year tangible book value is, and then they go out and tell everybody here. Here's what they can afford to pay for you and generate conversations around that. And then the line I use often is because that's what we can afford to pay doesn't mean that's what you're worth and so we have that conversation sometimes.

因此，我們一直認為 3 年獲利回報是我們劃定界線的地方。我會告訴你，我處理的最令人沮喪的事情之一是因為我們在這次電話會議上這麼說，因此投資銀行家聽到了這一點，所以他們只是自動出去計算 3 年有形賬面價值，並且然後他們出去告訴這裡的每個人。以下是他們可以為您支付的費用，並圍繞此進行對話。然後我經常使用的台詞是因為這是我們能夠支付的費用並不意味著這就是你的價值，所以我們有時會進行這樣的對話。

And again, I draw the analogy of selling your house if you on musk is interested in your house, he can afford to pay a lot, but that doesn't necessarily meet your house is worth more than the comps around your house. And so we get into that. And so that's -- when we think about it, we think about that as kind of a parameter, but we're thinking about, hey, what does this mean to us? And it could -- in some cases, I suppose it could take us over that. It never has. But we think about it quite strategically in our parameters is really we -- obviously, we want to see EPS accretion and we want that to be again on a reasonable size institution, you'd like for that to get up in the double-digit EPS accretion.

再一次，我打了個比方，如果你對馬斯克感興趣，他可以出很多錢，那麼賣掉你的房子，但這並不一定滿足你的房子比你房子周圍的房子更值錢。所以我們開始討論這個問題。所以，當我們思考這個問題時，我們會將其視為一種參數，但我們會思考，嘿，這對我們意味著什麼？在某些情況下，我認為它可以幫助我們克服這一點。從來沒有。但我們在我們的參數中相當戰略性地考慮了這一點——顯然，我們希望看到每股收益的增長，我們希望再次成為一個規模合理的機構，你希望它能以兩位數的速度增長EPS 增加。

And then on a smaller institution, it might not reach that because it just doesn't have the impact. But then we really focus on what happens to our tangible capital level. And one other point there that is what you're part of what you're alluding to, is that's a harder computation than it used to be because of AOCI and what that does. It can create more tangible book value dilution, but that also tends to come back much more quickly in the way that, that comes back to you on your earnings and GAAP accounting. So...

而對於規模較小的機構來說，它可能無法達到這個目標，因為它根本沒有影響力。但隨後我們真正關注的是我們的有形資本水準所發生的變化。還有一點就是你所提到的內容的一部分，那就是由於 AOCI 及其作用，計算比以前更加困難。它可以創造更多有形的帳面價值稀釋，但這種稀釋也往往會更快地恢復，就像你的收益和公認會計原則會計一樣。所以...

The next question comes from Alex Lau from JPMorgan.

下一個問題來自摩根大通的 Alex Lau。

What are the key areas of the bank where you're seeing the expense reduction coming from? Can you give some color as to how much of this retirement or cuts are coming from front office, back office. And also, what are the types of projects or investments that you're putting on the back burner for now?

您認為銀行的哪些關鍵領域的費用減少了？您能否說明一下，這次退休或裁員中有多少來自前台和後台？另外，您目前暫時擱置的項目或投資類型是什麼？

Alex, it's Michael. Yes. I mean it's broad-based across the company, front end, back office. Early retirement was probably more management-driven activity. But again, it's front end, back office, some leadership type stuff and change, positions as you look across, obviously, we've had slower loan growth, so we've seen some reduction in relationship managers, but not very much. And some of that is just a product of the environment.

亞歷克斯，這是麥可。是的。我的意思是它在整個公司、前端、後台都有廣泛的基礎。提前退休可能更多是管理階層驅動的活動。但同樣，這是前端、後台、一些領導類型的東西和變化，你所看到的職位，顯然，我們的貸款增長速度較慢，所以我們看到客戶關係經理有所減少，但不是很多。其中一些只是環境的產物。

I've mentioned the branches. That's a piece of it. And then just some other back-office stuff. But I think if you think about projects, Chris mentioned the investments we've made. I mean we're still positioning ourselves for becoming a larger, more scalable institution. So we've invested a lot in risk management, a lot of data a lot in audit functions. And so those continue. We're just in a really sustainable, scalable place at this point operationally.

我已經提到過分支機構。這就是其中的一部分。然後還有其他一些後台工作。但我認為如果你考慮項目，克里斯提到了我們所做的投資。我的意思是，我們仍然致力於成為一家規模更大、規模更大的機構。因此，我們在風險管理方面投入了大量資金，在審計職能方面投入了大量數據。這些都還在繼續。目前我們的營運處於一個真正可持續、可擴展的狀態。

And so we're looking to capitalize on that. But yes, it's just making sure that we're well positioned for next year and the years after.

所以我們希望利用這一點。但是，是的，這只是確保我們為明年和以後的幾年做好準備。

Alex, if I could just add just a couple of comments. Some of the -- some of the expense reduction comes from it. Remember this -- remember, we -- over -- since we did our IPO in late 2016, we have quadrupled in size. We have made 4 acquisitions. The last one being 40% of our size. And so -- and then we -- and then that -- we went through a pandemic right after that. And so when you do all that, you put a lot together. And so the expense reductions, which we have been very thoughtful about, notice we did -- we haven't built up and try to build a lot of anticipation around this because we've been very thoughtful about that now over a number of months and it's something that comes -- and frankly, have been -- the execution has been over time as well. And so -- and so they come across the Board, both geographically as well as operationally in terms of how those.

亞歷克斯，如果我可以添加一些評論。一些費用的減少就是來自於此。請記住這一點——記住，我們——結束了——自從我們在 2016 年底進行 IPO 以來，我們的規模已經翻了兩番。我們已經進行了 4 次收購。最後一個是我們尺寸的 40%。所以——然後我們——然後——在那之後我們經歷了一場大流行。因此，當你完成所有這些工作時，你就將很多東西放在一起。因此，我們一直非常深思熟慮地削減費用，請注意我們確實這樣做了——我們還沒有建立並試圖圍繞這一點建立很多預期，因為我們已經在幾個月的時間裡對此進行了非常深思熟慮的事情坦白說，執行也是隨著時間的推移而發生的。因此，他們在地理和操作上都遇到了董事會。

And then I want to mention just a couple of investments that we -- that we won't put on the back burner. You said one that you do. And frankly, I can't think of ones that we're looking around the table going, we can't think of one that we have, but we have made substantial investments, particularly in data -- the data side of the business and making sure that we have actionable data to manage the business. And I talked in my comments about when we were talking about liquidity and we talked about -- I said some of the models have been tweaked and some have been overhauled. That's what we -- so we've done a lot of overhauling of models, again, making sure we have the right and actionable data. The risk management side of our business, we've made really substantial investments over the last 2-plus years.

然後我想提一下我們不會擱置的幾項投資。你說你做的一個。坦白說，我想不出我們正在討論的那些，我們想不到我們擁有的那些，但我們已經進行了大量投資，特別是在數據方面——業務的數據方面和確保我們擁有可操作的數據來管理業務。我在評論中談到，當我們談論流動性時，我們談論了——我說一些模型已經過調整，有些模型已經徹底修改了。這就是我們的目的——所以我們再次對模型進行了大量的修改，以確保我們擁有正確且可操作的數據。在我們業務的風險管理方面，我們在過去兩年多的時間裡進行了大量投資。

And just third line defense investments have been substantial as the company gets larger and as you plan to scale the company from here, those foundations or what we've spent -- the other -- one of the other ones, Michael, I'm not sure if you mentioned was professional services. One of the big reductions as we've spent a lot in professional services. You can see that actually, again, if you look at that expense line in our supplement, you'll see the decrease there and that was intentional spend from some of the best of international consultants out there on things that we wanted to make sure we got right. And so when it comes to back burner, frankly, I can't think of what we would put on the back burner. We hadn't done a lot of branch expansion would be one thing -- that's about the only thing I can think of.

隨著公司規模不斷擴大，當你計劃從這裡擴大公司規模時，第三線國防投資就變得相當可觀，這些基金會或我們花費的資金——另一個——其他的一個，邁克爾，我是不確定您提到的是否是專業服務。其中一項重大削減是因為我們在專業服務上花費了大量資金。你可以看到，實際上，如果你看看我們補充中的費用線，你會看到那裡的減少，這是一些最好的國際顧問在我們想要確保我們的事情上的有意支出。說對了。因此，坦白說，當談到暫時擱置時，我想不出我們會暫時擱置什麼。我們沒有進行大量的分公司擴張是一回事——這是我能想到的唯一一件事。

And I had a question on security sale. Can you update us on the parameters that you look for in terms of an acceptable earn back period and then separately, as bond yields were rising in the quarter, when in the quarter did you sell these securities? And what is the appetite for more sales at the current yield curve?

我有一個關於證券銷售的問題。您能否向我們介紹一下您在可接受的獲利回收期方面所尋找的參數，然後隨著本季債券殖利率的上升，您在本季何時出售這些證券？在當前的殖利率曲線下，對更多銷售的興趣是什麼？

Yes. Really the parameters haven't changed that much. We want to be around a couple of years. We did kind of move a little bit off that just because, as I mentioned earlier, the securities we sold were so low yielding that it really didn't matter the rate environment, the duration was the duration. And so we saw some opportunity. But I think as we look forward, it's going to be in that couple of year range on earn-back. We sold -- it's kind of probably in middle September and it was before the 10-year and everything shot up at the end.

是的。事實上，參數並沒有改變那麼多。我們想再待幾年。我們確實有點偏離這一點，只是因為，正如我之前提到的，我們出售的證券收益率如此之低，以至於利率環境並不重要，久期就是久期。所以我們看到了一些機會。但我認為，當我們展望未來時，獲利回報將在這幾年的範圍內。我們賣掉了——大概是在九月中旬，當時是在 10 年期之前，所有東西都在年底飆升。

And so we really paused reinvesting. We put about $90 million to work in mid-September and we paused that last couple of weeks. Now subsequently, the 10 years come back down 25, 30 basis points. So we're comfortable in this range, but it's about finding the right investments. Our portfolio has gotten smaller. It's about 10.8% of total assets. That's fine. It depends on what other options are. And so we're not growing the book to 20%. We're not shrinking the 5, and it will stay in this range.

所以我們真的暫停了再投資。我們在 9 月中旬投入了約 9000 萬美元，但在過去幾週暫停了該項目。現在，10 年期利率回落了 25、30 個基點。所以我們對這個範圍感到滿意，但這是為了找到合適的投資。我們的投資組合變得更小了。約佔總資產的10.8%。沒關係。這取決於其他選擇。所以我們不會把本書的內容增加到 20%。我們不會縮小 5，它會保持在這個範圍內。

And then just a follow-up on the public funds. If you look at last year's fourth quarter, that grew in the $400 million range. Is that a fair amount to assume for this year? Or is there something different going on in the fourth quarter?

然後是公共資金的後續行動。如果你看看去年第四季度，你會發現成長了 4 億美元。今年的假設金額合理嗎？或者第四季會發生什麼不同的事情嗎？

Yes. That's fair. We expect $400 million to $500 million or so. And yes, we we're managing that with profitability and liquidity and competitive environment. So it's a daily grunt I'll say. But yes, that's -- as we kind of forecast out, that's what we'd expect and we're kind of managing through all the moving pieces there.

是的。這還算公平。我們預計 4 億至 5 億美元左右。是的，我們正在透過獲利能力、流動性和競爭環境來管理這一點。所以我會說這是每天的咕嚕聲。但是，是的，正如我們所預測的那樣，這就是我們所期望的，我們正在管理那裡的所有移動部分。

Yes. I'd just say, yes, I'd say you're right on our assumption. Yes, Alex, I mean it's going to be right in that range. Well, that's what we anticipate it will be.

是的。我只想說，是的，我想說你的假設是對的。是的，亞歷克斯，我的意思是它會在這個範圍內。嗯，這就是我們預期的情況。

The next question comes from Kevin Simmons from D.A. Davidson.

下一個問題來自 D.A. 的凱文·西蒙斯 (Kevin Simmons)。戴維森。

Just want to -- so I know we've got a few questions on this, but I just want to think -- make sure I'm thinking about this correctly. So we're going to have a positive tailwind for the margin from the securities transaction, but this is being outweighed in fourth quarter by the public funds, right? Being a drag on -- in terms of being higher cost and coming in. And we still continue to see a deposit mix shift, right? But however, the velocity or the pace of deposit rate increases is abating. It seems like you're saying. So if we look -- I appreciate that margin range, but apart from the effect of the public funds, are we at a point where we're -- margin is going to trough here in the next quarter or 2 and then position maybe in the first half of '24 to start expanding. I know that's a big preamble. I'm just trying to make sure I'm catching all the variables.

我只是想——所以我知道我們對此有一些問題，但我只是想——確保我正確地思考這個問題。因此，我們將從證券交易中獲得積極的利潤推動力，但這在第四季度被公共基金所抵消，對吧？就更高的成本和進來而言，成為拖累。我們仍然繼續看到存款組合的轉變，對吧？但存款利率上漲的速度或步伐正在放緩。看來你是這麼說的。因此，如果我們看看——我很欣賞這個利潤率範圍，但除了公共資金的影響之外，我們是否處於這樣一個點——利潤率將在下一個季度或第二個季度觸底，然後可能處於24年上半年開始擴張。我知道這是一個很大的序言。我只是想確保我捕獲了所有變數。

I appreciate the preamble. Because those are all the things we talk about -- yes. I think you got it. I think you nailed it. And with one thing I would say there was something you said that the public funds should outweigh the securities trade and it will certainly those 2 will work against each other. Michael, was it totally outweigh it.

我很欣賞序言。因為這些就是我們談論的所有事情——是的。我想你明白了。我想你已經成功了。我想說的一件事是，你說過公共資金應該超過證券交易，這兩者肯定會相互抵消。邁克爾，這是否完全超過了它。

Yes, because it's kind of a rate volume challenge, right, is the volume of the public funds we expect to come on 4x, 5x the securities rate.

是的，因為這是利率規模挑戰，對吧，我們預期公共基金的規模將是證券利率的 4 倍、5 倍。

Yes. That's true. And so the -- but the rest of that, Kevin, is what's going on. And you called it a preamble, but -- it's those and other factors, which were -- which filter into the model to help us forecast where it's headed and that's why we use a range, and we've described it as kind of range bound over the next couple of quarters. But again, I think you said -- and then after that, we'd expect it to begin to increase, and that would be the case at getting into '24.

是的。這是真的。所以，凱文，剩下的就是正在發生的事情。你稱之為序言，但是 - 正是這些和其他因素 - 過濾到模型中以幫助我們預測它的發展方向，這就是我們使用範圍的原因，我們將其描述為某種範圍在接下來的幾個季度裡。但我想你說過——在那之後，我們預計它會開始增加，進入 24 年後就是這種情況。

I will say the mix shift, if you think about from noninterest-bearing to interest-bearing has moderated as well. We've been in this 22% range for a couple of quarters now. So the velocity of deposit or the velocity of rate increases have slowed. We've seen that moderate as well. I always point back to kind of pre-pandemic as we talked about the combination with Franklin, we expected that number to be around 20%.

如果你考慮從無息到有息的混合轉變也已經放緩。幾個季度以來，我們一直處於 22% 的範圍內。因此存款速度或利率上升速度已經放緩。我們也看到了這種溫和的情況。當我們談論與富蘭克林的合併時，我總是提到大流行前的情況，我們預計這個數字約為 20%。

So I would say this range feels about right for migration from NIB to interest-bearing. We do see some move between products, interest checking to money market more so, a little bit in CDs, but we're trying to keep those fairly short. But competition there, as I mentioned earlier, some community banks and then treasury, but not too as much outflow anymore to treasuries.

所以我想說這個範圍對於從 NIB 遷移到計息是合適的。我們確實看到了產品之間的一些變化，尤其是貨幣市場的利息檢查，CD 中也有一些變化，但我們正在努力保持這些變化相當簡短。但正如我之前提到的，那裡存在著競爭，一些社區銀行，然後是國庫，但不再有太多資金流出國庫。

Got it. And one follow-up I wanted to ask about M&A. Chris, in the past, you've kind of described it as you guys have certain targets in mind over a long-term time horizon, and it's a matter of when the right time for them to be willing to sell. And -- but yet you sound much more confident there will be opportunities coming. And so is that a matter of you guys are getting a sense some of these attractive properties are getting ready or having -- starting to have conversations or and/or that just given the environment and the position you're in, you're kind of expanding that spectrum of potential opportunities.

知道了。我想問有關併購的後續問題。克里斯，過去，您將其描述為您心中有長期的特定目標，問題在於他們何時願意出售的合適時機。而且——但你聽起來更有信心，機會即將到來。因此，你們中的一些人正在意識到一些有吸引力的房產正在準備或正在開始進行對話或和/或考慮到環境和你們所處的位置，你們很友善擴大潛在機會的範圍。

It's the former -- it's not that we're really -- we still have the same things that we look for. And when we're -- so that means that there's going to be a limited number of institutions that have the parameters that we're looking for. So that list really hasn't changed. It's just that with -- when we look out in the '24 and we talk to everybody in the industry and on -- and conclude for ourselves what we think is going to happen. We just think that some of those are likely to decide, hey, it's time to seek out my options. And so it's really the latter. It's not that we're expanding and going, okay, we're not expanding our parameters either from a geographic perspective or from what we're looking for.

是前者——並不是說我們真的——我們仍然擁有我們所尋找的相同的東西。當我們這樣做時，這意味著擁有我們正在尋找的參數的機構數量將會有限。所以這個清單確實沒有改變。只是當我們展望 24 世紀並與業內及以後的每個人交談時，我們自己得出我們認為將會發生的事情的結論。我們只是認為其中一些可能會決定，嘿，是時候尋找我的選擇了。所以實際上是後者。這並不是說我們正在擴展和繼續，好吧，我們沒有從地理角度或從我們正在尋找的內容擴展我們的參數。

Yes. Okay. Got it. And one last thing. You mentioned a couple of times that you made these deliberate moves to strengthen the balance sheet for difficult times, but you feel now that things won't likely get that difficult. Is that been more of an ongoing thought? Or is that something based on recent observations that you're feeling like, all right, we're glad we prepared, but it's probably not going to be as bad as what we might have thought a couple of quarters ago.

是的。好的。知道了。最後一件事。您多次提到，您在困難時期採取了這些深思熟慮的舉措來加強資產負債表，但您現在覺得事情不會變得那麼困難。這是一個持續不斷的想法嗎？或者是基於最近的觀察，你感覺，好吧，我們很高興我們做好了準備，但情況可能不會像我們幾個季度前想像的那麼糟糕。

Yes. And I'm going to alter that just a little bit to say we're prepared for things to get difficult. We don't think they'll get as difficult as we're prepared for. And so because we're prepared if things get -- if we find ourselves stuck back in 2008 and '09, that kind of environment, we think we're not on wood. We think we'd be prepared for that at this point, going back to what happened in March of this year, again, we feel like we're well prepared for whatever comes at us. And our point is, we don't think those things are going to happen. We actually do things which get slower from here, okay? So we do think that things will get slower. We don't think -- we're saying if it gets really slow or really difficult, we're prepared for that, okay? But we don't really anticipate it getting as bad as we're prepared soon. So that doesn't mean we don't think it's going to get slower. Okay.

是的。我要稍微改變一下，說我們已經做好了應對困難的準備。我們認為他們不會像我們準備的那麼困難。因此，因為我們已經做好了準備，如果事情發生——如果我們發現自己陷入了 2008 年和 09 年那樣的環境，我們認為我們已經陷入困境。我們認為我們現在已經為此做好了準備，回到今年三月發生的事情，我們覺得我們已經為發生的任何事情做好了充分準備。我們的觀點是，我們認為這些事情不會發生。事實上，我們做的事情從這裡開始就變慢了，好嗎？所以我們確實認為事情會變得更慢。我們不認為 - 我們是說如果事情變得非常緩慢或非常困難，我們已經做好了準備，好嗎？但我們並不真正預期事情會變得像我們很快做好的準備那麼糟糕。所以這並不意味著我們認為它不會變慢。好的。

The next question comes from Matt Olney from Stephens.

下一個問題來自史蒂芬斯的馬特·奧爾尼。

I just want to follow up on the capital discussion, we've talked about potential for additional securities transactions and M&A conversations heating up. So can we assume that as far as any kind of share repurchase program that in the near term, that's going to be less likely? Or how would you characterize the appetite of the buybacks?

我只想跟進資本討論，我們已經討論了額外證券交易的潛力以及併購對話的升溫。那麼我們是否可以假設，就任何類型的股票回購計畫而言，短期內這種情況的可能性會較小？或者您如何描述回購的胃口？

That's a less likely that -- and that's really related again to just not being able to predict the future. And we don't want to I think if somebody goes up, if anybody, if we went out and did started buying back now and credit got really difficult for the whole world, we wouldn't look too smart if we had to raise capital after that. And so we want to make sure that -- so we we're going to be conservative there on how we use this capital until we think that the industry is feel brighter from a credit perspective. And again, interest rates, we feel like interest rates are -- have hit their peak.

這種可能性較小——而這又與無法預測未來有關。我們不想，我認為如果有人上漲，如果有人，如果我們現在出去並開始回購並且信貸對整個世界來說真的很困難，如果我們必須籌集資金，我們看起來不會太聰明在那之後。因此，我們希望確保這一點，因此我們將在如何使用這些資本方面保持保守，直到我們認為從信貸角度來看，該行業感覺更加光明。再說一遍，利率，我們感覺利率已經達到高峰。

Okay. That's helpful, Chris. And then I guess also circling back on the deposit discussion. I think you gave us lots of good details around the public funds and that's kind of where the focus is now. What about on the customer time deposits? I think there's a $1.4 billion balance. That average cost in the third quarter still feels quite a bit below most of your peers. Can you just kind of walk through the repricing dynamics there with maturing more near term? And then what are the current rates that you're seeing for your customers?

好的。這很有幫助，克里斯。然後我想又回到了押金討論上。我認為您向我們提供了許多有關公共基金的詳細信息，這就是現在的焦點。那麼客戶定期存款呢？我認為還有 14 億美元的餘額。第三季的平均成本仍然比大多數同業低很多。能否簡單介紹一下近期成熟的重新定價動態？那麼您為客戶看到的當前費率是多少？

Yes, Matt, this is Michael. We -- if you remember, we did a fairly decent sized deposit campaign last year, and we had some CDs, some CD specials that in September, October last year, it was kind of 13, 18-month, 24-month paper. So the weighted average term now is about 18 months. And the cost was at the time market, we haven't moved off those rates a whole lot. And we're still seeing renewals in historic kind of renewal rates. And so I kind of mentioned this earlier, we've certainly raised some CD rates, but it's just been shorter in term. So we -- if customers come in and want a shorter-term CD at a slightly higher rate, you actually see it looks like the yield curve is a little bit inverted.

是的，馬特，這是麥可。如果你還記得的話，我們去年進行了相當規模的存款活動，我們有一些 CD，一些去年 9 月、10 月的特價 CD，是 13 個月、18 個月、24 個月的票據。所以現在的加權平均期限約為18個月。成本是以當時的市場價格計算的，我們並沒有大幅降低這些費率。我們仍然看到歷史性的續訂率。所以我之前提到過，我們確實提高了一些 CD 利率，但期限較短。因此，如果客戶進來並希望以略高的利率獲得短期 CD，您實際上會發現殖利率曲線看起來有點倒掛。

And so if you stay in those terms that you were in last year, you're getting a very similar rate. And of course, our model is customer focus so that field can take care of customers as they need to in competitive situations and we stick by that. So that we're doing right by the customer, right by the company. And so there's some flexibility there.

因此，如果你保持去年的條件，你會得到非常相似的利率。當然，我們的模式是以客戶為中心，因此該領域可以在競爭情況下根據需要照顧客戶，我們堅持這一點。這樣我們就能為客戶、為公司做正確的事。所以這裡有一定的彈性。

And then Michael, just to follow up on that. As you look at some of the renewal time lines, is there -- is it spread evenly in the next few quarters? Or is there any quarter or 2 where you see more volumes set to be price?

然後是邁克爾，跟進此事。當您查看一些更新時間軸時，是否會在接下來的幾個季度中均勻分佈？或者是否有任何一個或兩個季度您認為價格上的銷量會增加？

It's spread pretty evenly fourth and first. There's a little bit of a lump in the second quarter of next year. Yes. So it's -- but it's already higher-priced stuff than what's renewing in the fourth and first quarter.

第四和第一的分佈相當均勻。明年第二季會有一點起伏。是的。確實如此，但它的價格已經比第四季和第一季更新的產品要高了。

Okay. That's helpful. And then I guess, sticking on the deposit pricing pressure theme, your footprint is a good kind of mix of more metro markets and also some rural communities. Just any general commentary for us as we think about deposit repricing pressure in some of your general markets, where the pressure is greater today and where it's maybe not as great as it once was?

好的。這很有幫助。然後我想，堅持存款定價壓力主題，您的足跡是更多都市市場和一些農村社區的良好組合。當我們考慮一些一般市場的存款重新定價壓力時，對我們有什麼一般性評論嗎？今天的壓力更大，而壓力可能不像以前那麼大？

This is Travis. It's really interesting initially, we saw the most pressure from the smaller communities, the kind of the rural markets. We're now seeing some larger regional banks putting out some specials in the fabs. So it's really across the board, either urban or rural that we're seeing deposit pressures. And they're all generally in that 5.25% to 5.75% range on the specials.

這是特拉維斯。最初真的很有趣，我們看到來自較小社區的最大壓力，即農村市場。我們現在看到一些較大的區域銀行在晶圓廠推出了一些特價產品。因此，無論是城市或農村，我們都面臨存款壓力。而且特價商品的折扣通常都在 5.25% 到 5.75% 之間。

The next question comes from Steve Moss from Raymond James.

下一個問題來自雷蒙德·詹姆斯的史蒂夫·莫斯。

So most of my questions have been asked and answered here. Just want to -- just one thing on office here. Just curious if you could give any color as to when the rents in that portfolio start to come up for renewal? And any color around that dynamic there?

所以我的大部分問題都在這裡被提出和回答。只是想——辦公室裡只有一件事。只是好奇您是否可以說明該投資組合中的租金何時開始更新？圍繞著這種動態有什麼顏色嗎？

And Steve -- I am sorry, our Chief Credit Officer is not here. I will say just generally on renewal, Michael went through kind of where we were on our fixed rate portfolio is not office specific. And so -- and when we did look at office, I'm not thinking about rent renewals, I was thinking about the loan renewals. And so I'd have to get a little more detailed information and get back to you. Does that -- Travis, you, is that fair?

史蒂夫——抱歉，我們的首席信貸官不在。我想說的是，在續約方面，麥可經歷了我們固定利率投資組合的情況，這並不是辦公室特定的。因此，當我們確實考慮辦公室時，我沒有考慮租金續簽，而是考慮了貸款續約。因此，我必須獲得更詳細的資訊並回覆您。那——崔維斯，你，公平嗎？

That's fair.

這還算公平。

Okay. Great.

好的。偉大的。

The next question comes from Feddie Strickland from Janney Montgomery Scott.

下一個問題來自詹尼·蒙哥馬利·斯科特的費迪·斯特里克蘭。

I wanted to start off, I saw borrowings and brokered CDs declined during the quarter, which I'm sure helped on the funding cost side. Did those just mature and you didn't renew them? And could we see more of that rolling off in future quarters, just given you've got loans to deposits, so around 87%.

我想首先，我看到借款和經紀存款證在本季度有所下降，我確信這對融資成本方面有所幫助。這些是否剛剛成熟，您沒有更新它們？我們是否會在未來幾季看到更多這樣的情況出現，只要你有貸款存款，大約 87% 左右。

Yes. That's right, Feddie. Some of them rolled off and we have some more coming due in November. If you remember last quarter, we increased some of that, just because it was cheaper than retail deposits. Quite frankly and so Chris mentioned this and is we keep our powder dry on sources of liquidity, so that we can leverage it when we want to and need to. So sometimes when we see brokered market is cheaper or FHLB funding is cheaper, we'll do that. And so that levers out there. But we do have, I believe, it's $100 million rolling off in November, whether we renew it or not as TBD, certainly don't need it, to your point, we freed up a lot of liquidity from a collateral standpoint as well during the quarter, good work by the team there to further create sources of liquidity.

是的。沒錯，費迪。其中一些已完成，還有更多將於 11 月到期。如果您還記得上個季度，我們增加了其中一些，只是因為它比零售存款便宜。坦白說，克里斯提到了這一點，我們要保持流動性來源的充足性，以便我們可以在需要時利用它。因此，有時當我們看到經紀市場更便宜或 FHLB 資金更便宜時，我們就會這樣做。所以槓桿就在那裡。但我相信，我們確實在 11 月份發放了 1 億美元，無論我們是否續約，待定，當然不需要它，就您而言，我們從抵押品的角度來看，在本季度，團隊的出色工作進一步創造了流動資金來源。

Understood. That's helpful. And switching gears a little bit here. As we look at these expense reductions, coupled with -- so the securities portfolio restructuring and some of the other trends that we talked about in the margin and everything else going on, do you think efficiency is the core bank ex mortgage can get into the mid-50s range by the end of 2024 from the, I think, a peg at around 60% today.

明白了。這很有幫助。在這裡稍微切換一下。當我們看到這些費用減少，再加上證券投資組合重組以及我們在保證金中討論的其他一些趨勢以及其他正在發生的事情時，您認為效率是銀行除抵押貸款之外的核心嗎？我認為，到2024 年底，這一比例將達到50 年代中期，目前的匯率為60% 左右。

Yes, is the answer. We do -- we think on the core, just core bank? Yes. We think we can get below the mid-50s, even.

是的，就是答案。我們確實──我們考慮核心，只是核心銀行？是的。我們認為我們甚至可以低於 50 年代中期。

Got it. And one last question for me. It sounds like we should expect to see the unfunded loan commitments in the CD space continue to come down. As a consequence, do you think we'll see the unfunded commitment reserve continue to decline as well?

知道了。還有最後一個問題想問我。聽起來我們應該期望看到 CD 領域的無資金貸款承諾繼續下降。因此，您認為我們會看到無資金投入的承諾儲備金也繼續下降嗎？

Yes. That's right. If you look at the ACL slide, you'll see we actually increased our reserve on the construction bucket, but we released from the unfunded strictly due to the volume. And so you'll see that continue to decrease, and then we'll probably land in that 80%, 85% range Tier 1 plus ACL and it would normalize from there.

是的。這是正確的。如果你看 ACL 幻燈片，你會發現我們實際上增加了建設桶的儲備，但我們嚴格按照數量釋放了無資金的資金。所以你會看到它繼續減少，然後我們可能會落在 80%、85% 的範圍第 1 層加上 ACL，並且從那裡開始正常化。

The next question is a follow-up from Stephen Scouten from Piper Sandler.

下一個問題是 Piper Sandler 的 Stephen Scouten 的後續問題。

I'm not sure if you have this number, but I just wanted to follow up, as you referenced, you had C&I credit had some exposure to the SNC loan in the industry that went bad. But -- do you guys have numbers on your total SNC exposure? And if so, like kind of how much of that you lead of the SNC exposure that you may have.

我不確定您是否有這個數字，但我只是想跟進，正如您所提到的，您的 C&I 信貸在該行業的 SNC 貸款中存在一些風險敞口，但出現了不良情況。但是，你們有 SNC 總暴露量的數字嗎？如果是這樣，就像您在 SNC 風險敞口中所佔的比例一樣。

Yes. Stephen, it's Travis. We have roughly $175 million in SNCs. We lead approximately $80 million of that is for round numbers.

是的。史蒂芬，我是崔維斯。我們擁有大約 1.75 億美元的 SNC。我們領先大約 8000 萬美元，其中是整數。

And so -- and importantly there, we don't do any SNCs without some compelling -- we don't do SNCs for growth. We only enter a SNC because we've got some clients that -- or some relationship that gets us into the SNC. And so -- and I'll give you a couple of examples, 2 specific examples without using names, one significant client here in our footprint. We have -- we know the owners -- we know the owners of the company. We know the officers of the company and they said, we really want you to -- we really want you in our credit. And so we got -- we're in the credit because it's a major name that everybody would know in our geography.

因此，重要的是，如果沒有令人信服的東西，我們不會做任何 SNC - 我們不會為了增長而做 SNC。我們進入 SNC 的唯一原因是我們有一些客戶，或者某種關係讓我們進入 SNC。所以——我會給你幾個例子，兩個沒有使用名字的具體例子，我們足跡中的一個重要客戶。我們——我們了解所有者——我們了解公司的所有者。我們認識公司的管理人員，他們說，我們真的希望你這麼做——我們真的希望你能贏得我們的信任。所以我們得到了——我們有功勞，因為它是我們地理上每個人都知道的一個主要名字。

Second one, a company that we banked from the start-up of the company until they became a publicly traded company. We still have the bulk of their deposits, including their operating account, but their line of credit now is over $1 billion. We don't lead it. We still -- we have part of the SNC. Those would be 2 examples. And so -- we -- it's only those kinds of -- that we get into. We don't just put SNCs on for -- we generally are SNC adverse is the way I would put it. When we do it, it's because we have some compelling reason that says we need to do this.

第二個是一家公司，我們從公司成立之初一直為其提供銀行服務，直到他們成為上市公司。我們仍然擁有他們的大部分存款，包括他們的營運帳戶，但他們的信貸額度現在超過 10 億美元。我們不領導它。我們仍然——我們擁有 SNC 的一部分。這是兩個例子。所以——我們——我們只涉及那些類型。我們不只是為了——我想說的是，我們通常反對 SNC。當我們這樣做時，是因為我們有一些令人信服的理由表明我們需要這樣做。

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

我們的問答環節到此結束。我想將會議轉回克里斯·霍姆斯（Chris Holmes）發表閉幕詞。

Okay. Thanks, everybody. We really appreciate, again, your interest in the company. We appreciate everybody's questions and answers today. And if we have things that need clarification, we're glad to get on the phone with anybody that we need to. So don't hesitate to reach out. All right. Everybody, have a great rest of your day, and you got -- you analysts have a great rest of your earnings season.

好的。謝謝大家。我們再次感謝您對公司的興趣。我們感謝大家今天提出的問題和答案。如果我們有需要澄清的事情，我們很樂意與我們需要的任何人通電話。因此，請不要猶豫與我們聯繫。好的。每個人，今天都好好休息，你們分析師也好好休息了財報季。

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。