First Commonwealth Financial Corp (FCF) 2023 Q1 法說會逐字稿

Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Commonwealth Financial Corporation First Quarter 2023 Earnings Release Conference Call. Today's conference is being recorded. (Operator Instructions) And I will now turn the conference over to Ryan Thomas, Vice President of Finance and Investor Relations. You may begin.

女士們，先生們，下午好。我叫艾比，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加 First Commonwealth Financial Corporation 2023 年第一季度收益發布電話會議。今天的會議正在錄製中。 （操作員說明）我現在將會議轉交給財務和投資者關係副總裁 Ryan Thomas。你可以開始了。

Thank you, Abby, and good afternoon, everyone. Thank you for joining us today to discuss First Commonwealth Financial Corporation's first quarter financial results. Participating on today's call will be Mike Price, President and CEO; Jim Reske, Chief Financial Officer; Jane Grebenc, Bank President and Chief Revenue Officer; and Brian Karrip, our Chief Credit Officer.

謝謝你，艾比，大家下午好。感謝您今天加入我們討論 First Commonwealth Financial Corporation 第一季度的財務業績。參加今天電話會議的有總裁兼首席執行官 Mike Price；首席財務官 Jim Reske；銀行行長兼首席營收官 Jane Grebenc；和我們的首席信貸官 Brian Karrip。

As a reminder, a copy of yesterday's earnings release can be accessed by logging on to fcbanking.com and selecting the Investor Relations link at the top of the page. We've also included a slide presentation on our Investor Relations website with supplemental financial information that will be referenced during today's call. Before we begin, we need to caution listeners that this call will contain forward-looking statements. Please refer to our forward-looking statements disclaimer on Page 3 of the slide presentation for a description of risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements.

提醒一下，登錄 fcbanking.com 並選擇頁面頂部的“投資者關係”鏈接，即可獲取昨天的收益發布副本。我們還在我們的投資者關係網站上提供了一個幻燈片演示，其中包含在今天的電話會議中將參考的補充財務信息。在我們開始之前，我們需要提醒聽眾，本次電話會議將包含前瞻性陳述。請參閱幻燈片演示文稿第 3 頁上的前瞻性聲明免責聲明，了解可能導致實際結果與前瞻性聲明中反映的結果存在重大差異的風險和不確定性的描述。

Today's call will also include non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to and not as an alternative for our reported results prepared in accordance with GAAP. A reconciliation of these measures can be found in the appendix of today's slide presentation. And with that, I'll turn it over to Mike.

今天的電話會議還將包括非 GAAP 財務指標。非 GAAP 財務指標應被視為我們根據 GAAP 編制的報告結果的補充，而不是替代。這些措施的協調可以在今天的幻燈片演示的附錄中找到。有了這個，我會把它交給邁克。

Thank you, Ryan, and good afternoon, everyone. We are pleased with our results in a tumultuous quarter for the industry. Core earnings per share beat consensus by $0.06. Our NIM expanded. We had record net interest income, and we grew deposits much faster than loans, bringing down our loan-to-deposit ratio. In short, we worked our way through the first quarter by focusing intently on deposit gathering and retention while taking a measured approach to loan growth.

謝謝你，瑞安，大家下午好。我們對在這個行業動蕩的季度取得的業績感到滿意。每股核心收益超出市場預期 0.06 美元。我們的 NIM 擴展了。我們的淨利息收入創歷史新高，我們的存款增長速度遠快於貸款增長，從而降低了我們的貸存比。簡而言之，我們在第一季度努力工作，專注於存款收集和保留，同時採取審慎的方式來增加貸款。

Core earnings per share, which adjusts for onetime merger expenses and the day 1 CECL provision associated with our acquisition of Centric, was $0.45 in the first quarter. Core return on assets of 1.75%, was up from 1.51% last quarter, reflecting the benefit of lower provision expense, while core pretax pre-provision ROA of 2.11%, was down from 2.28% last quarter.

第一季度，根據一次性合併費用和與我們收購 Centric 相關的第 1 天 CECL 規定調整的核心每股收益為 0.45 美元。核心資產回報率為 1.75%，高於上一季度的 1.51%，反映了較低撥備費用的好處，而核心稅前撥備前 ROA 為 2.11%，低於上一季度的 2.28%。

The NIM expanded by 2 basis points to 4.01% and the net interest income was up by $6.3 million over the last quarter. Noninterest income declined and expenses rose contributing to an efficiency ratio that at 52.41%, was slightly elevated from last quarter's 50%. The first quarter was an eventful one for us. We successfully closed and converted Centric Bank during the quarter. The legal close took place on January 31, and the conversion occurred over the last weekend in February.

NIM 擴大 2 個基點至 4.01%，淨利息收入比上一季度增加 630 萬美元。非利息收入下降，支出上升，效率比率為 52.41%，略高於上一季度的 50%。第一季度對我們來說是一個多事之秋。我們在本季度成功關閉並轉換了 Centric Bank。合法關閉發生在 1 月 31 日，轉換發生在 2 月的最後一個週末。

I'm deeply grateful for all of the team members on both sides of this integration who work to make this come together as smoothly as it did. We are bullish on the demographics of the region, which includes Harrisburg, Lancaster and the Philadelphia suburbs of Devon and Doylestown. We're also pleased with the former Centric team that joined First Commonwealth as they have added to our line and back office strength.

我非常感謝這次整合雙方的所有團隊成員，他們努力使這次整合如此順利。我們看好該地區的人口統計數據，其中包括哈里斯堡、蘭開斯特以及費城郊區的德文郡和多伊爾斯敦。我們也對加入 First Commonwealth 的前 Centric 團隊感到高興，因為他們增加了我們的線和後台力量。

The events of the first quarter in the banking industry put a spotlight on community banks like First Commonwealth that have diverse and granular deposit portfolios and ample access to liquidity. Looking back to the middle of last year before deposit competition began in earnest, our cost of deposits was one of the best of any financial institution in the country. And our time deposit book had been consciously reduced to less than 5% of total deposits.

銀行業第一季度的事件讓 First Commonwealth 等社區銀行成為焦點，這些銀行擁有多樣化和細化的存款組合以及充足的流動性。回顧去年年中存款競爭真正開始之前，我們的存款成本是全國所有金融機構中最好的之一。我們的定期存款簿已有意識地減少到不到總存款的 5%。

Furthermore, our deposit composition has for some time been balanced between urban and rural and business and consumer with a relatively large proportion of transaction accounts. As the events of the first quarter unfolded, we saw renewed interest in the composition of that deposit base. I would direct your attention to new disclosures on Pages 13 through 17 in the accompanying slide deck.

此外，一段時間以來，我國存款結構在城鄉、企業和消費之間保持平衡，交易賬戶佔比較大。隨著第一季度事件的展開，我們看到人們對存款基礎的構成重新產生了興趣。請注意隨附幻燈片中第 13 頁至第 17 頁的新披露信息。

For example, as of the end of the first quarter, our uninsured deposits comprised only 27% of total deposits, and our total uninsured unsecured deposits amounted to only 17% of total deposits. Our average deposit size of 19,426 speaks to the granularity of our deposit base. And that figure is for all deposits. Consumer deposits represent 58% of our deposits and the average consumer deposit is $12,726 while the average consumer checking account is $7,900.

例如，截至第一季度末，我們的未投保存款僅佔存款總額的 27%，而我們未投保的無抵押存款總額僅佔存款總額的 17%。我們 19,426 的平均存款規模說明了我們存款基礎的粒度。這個數字適用於所有存款。消費者存款占我們存款的 58%，平均消費者存款為 12,726 美元，而平均消費者支票賬戶為 7,900 美元。

No one private sector industry represents more than 3% of our deposits. Approximately 98.2% of our deposits are less than $250,000 and 94% are less than $100,000. We refrained from certain deposit gathering strategies in the fourth quarter in a conscious effort to keep our total assets below $10 billion at quarter end. However, we have always been and continue to be focused on gathering new checking households and acting as the primary depository for our customers.

沒有一個私營行業占我們存款的 3% 以上。我們大約 98.2% 的存款低於 250,000 美元，94% 低於 100,000 美元。我們在第四季度避免了某些存款收集策略，有意識地努力將我們的總資產在季度末保持在 100 億美元以下。但是，我們一直並將繼續專注於收集新的支票家庭並充當我們客戶的主要存款人。

At year-end, in 2022, our total assets were $9.8 billion, and we pivoted once again the broader deposit gathering. The results demonstrate the fruit of our efforts as average deposits grew 13.8% annualized, outstripping measured loan growth of 3.43% for the quarter, bringing down our loan-to-deposit ratio from 95.6% to 93.9%. First quarter growth excludes Centric and the impact of purchase accounting marks as consumer loan categories led the way.

到年底，即 2022 年，我們的總資產為 98 億美元，我們再次轉向更廣泛的存款收集。結果證明了我們努力的成果，平均存款年化增長率為 13.8%，超過了本季度 3.43% 的衡量貸款增長率，使我們的貸存比率從 95.6% 降至 93.9%。第一季度的增長不包括 Centric 和購買會計標記的影響，因為消費貸款類別處於領先地位。

We now expect to see mid-single-digit loan growth through the end of the year in light of our continued ability to generate excess our capital in excess of what is needed to fund organic loan growth, we're pleased to announce that we have raised the dividend and obtained an additional $25 million of share repurchase authorization from our Board. Our digital platform continues to show impressive growth, particularly around customer engagement.

我們現在預計到今年年底，貸款將實現中個位數增長，因為我們有能力持續產生超過為有機貸款增長提供資金所需的資本，我們很高興地宣布，我們有提高了股息，並從我們的董事會獲得了額外的 2500 萬美元的股票回購授權。我們的數字平台繼續顯示出令人矚目的增長，尤其是在客戶參與方面。

We're now averaging over 210,000 average daily log-ins, a 24% year-over-year increase. This equates to approximately 1.2 log-ins per active user per day. As we look to the remainder of 2023 and into 2024, we will remain relentlessly focused on gathering and retaining core deposits. We will realize the benefits of the Centric acquisition and begin to grow. We will grow our C&I business through our regional business model. And with that, I'll turn it over to Jim Reske, our CFO. Jim?

我們現在平均每天登錄超過 210,000 次，同比增長 24%。這相當於每個活躍用戶每天大約 1.2 次登錄。展望 2023 年剩餘時間和 2024 年，我們將繼續不懈地專注於收集和保留核心存款。我們將意識到 Centric 收購的好處並開始發展。我們將通過我們的區域商業模式發展我們的 C&I 業務。然後，我將把它交給我們的首席財務官 Jim Reske。吉姆？

Thanks, Mike. Net interest income grew by $6.3 million over last quarter to a record $94.7 million. The net interest margin, or NIM, expanded by 2 basis points to 4.01% in the quarter as compared to last quarter. The cost of nonmaturity deposits was 0.88% in the first quarter for a cumulative through-the-cycle beta of 17.5% to date. Deposit rates increased over the course of the quarter, but at a slowing rate, up 31 basis points from January to February, but only up 15 basis points from February to March.

謝謝，邁克。淨利息收入較上一季度增長 630 萬美元，達到創紀錄的 9470 萬美元。與上一季度相比，本季度淨息差 (NIM) 擴大了 2 個基點，達到 4.01%。第一季度非到期存款的成本為 0.88%，迄今為止累計整個週期貝塔值為 17.5%。存款利率在本季度上升，但速度放緩，從 1 月到 2 月上升了 31 個基點，但從 2 月到 3 月只上升了 15 個基點。

Our projections for 2023 incorporate a rate forecast that suggests one more 25 basis point rate hike and then a decline in the Fed funds rate to approximately 4.8% by year-end. We estimate roughly 5 basis points of NIM compression next quarter, as always, give or take a few basis points. Our forecasts are highly dependent on assumptions regarding the repricing of deposits.

我們對 2023 年的預測包括一項利率預測，該利率預測表明將再加息 25 個基點，然後聯邦基金利率在年底前下降至約 4.8%。我們估計下個季度 NIM 壓縮大約 5 個基點，一如既往，給予或接受幾個基點。我們的預測在很大程度上取決於有關存款重新定價的假設。

In terms of liquidity, we began the first quarter of 2023 with $285 million of overnight borrowings from the Federal Home Loan Bank. And because deposit growth exceeded loan growth, we had paid off those borrowings completely towards the middle of March. However, in response to industry-wide liquidity concerns, we stockpiled some cash, as did many banks this quarter, to be sure we have cash on hand of these liquidity needs.

在流動性方面，我們在 2023 年第一季度開始時從聯邦住房貸款銀行獲得了 2.85 億美元的隔夜借款。而且由於存款增長超過貸款增長，我們在 3 月中旬之前完全還清了這些借款。然而，為了應對全行業的流動性擔憂，我們像本季度的許多銀行一樣儲備了一些現金，以確保我們手頭有現金來滿足這些流動性需求。

At quarter end, our cash and available for sale for securities as a percentage of total assets increased 102 basis points to 10.6%, and total available liquidity of $4.1 billion, was 2.6x total uninsured/unsecured deposits. First quarter average deposits grew at a 13.8% annualized rate, as Mike previously mentioned excluding the acquisition of Centric Bank.

季度末，我們的現金和可供出售證券佔總資產的百分比增加了 102 個基點，達到 10.6%，可用流動資金總額為 41 億美元，是未投保/無抵押存款總額的 2.6 倍。正如 Mike 先前提到的，不包括收購 Centric Bank，第一季度平均存款年化增長率為 13.8%。

Part of that growth came from the transfer in January of approximately $109.1 million of average off-balance sheet deposits from our trust company sweep accounts back onto our balance sheet. This was one of the strategies that, as Mike mentioned, we held off on executing in the fourth quarter to avoid inadvertently going over $10 billion in total assets.

部分增長來自於 1 月份將大約 1.091 億美元的平均資產負債表外存款從我們的信託公司清算賬戶轉移回我們的資產負債表。正如邁克提到的那樣，這是我們在第四季度推遲執行的戰略之一，以避免無意中超過 100 億美元的總資產。

However, even without this transfer, average deposits would still have grown by 8.3% annualized in the first quarter. The total cost of deposits, which includes noninterest-bearing deposits, increased by 52 basis points from 20 basis points last quarter to 73 basis points in the first quarter. The total cost of funds, which includes borrowings, grew by 51 basis points to 90 basis points for the quarter, up 39 basis points from last quarter.

然而，即使沒有這種轉移，第一季度的平均存款年化率仍將增長 8.3%。包括無息存款在內的存款總成本從上一季度的 20 個基點上升 52 個基點至第一季度的 73 個基點。包括借款在內的總資金成本本季度增長 51 個基點至 90 個基點，較上一季度增長 39 個基點。

This growth of 51 basis points of the total cost of funds was nearly equal to the 50 basis point increase in the yield on total earning assets in the quarter, which helps explain why the NIM was largely unchanged. Fee income declined by $1.3 million as compared to last quarter, due largely to ongoing weaknesses in our gain on sale businesses. Operating expense increased by $5.8 million as compared to last quarter, as you might expect, following an acquisition.

總資金成本增長 51 個基點幾乎等於本季度總盈利資產收益率增長 50 個基點，這有助於解釋 NIM 基本保持不變的原因。與上一季度相比，費用收入下降了 130 萬美元，這主要是由於我們的銷售業務收益持續疲軟。與上一季度相比，收購後的營業費用增加了 580 萬美元，正如您所預料的那樣。

Approximately $1.9 million of this expense was directly attributable to Centric operating expense and another $400,000 was the result of increased intangible amortization costs attributable to Centric. And there were other indirect expenses associated with the acquisition, such as advertising that are difficult to quantify. For example, we experienced a $742,000 increase in FDIC deposit insurance premiums in the first quarter, approximately $300,000 of which can be attributable to Centric. Looking forward, we expect intangible amortization expense to total $4.7 million in 2023, with $2.1 million of that coming from the Centric acquisition, and we expect operating expense to be in the range of $63 million to $64 million per quarter for the rest of 2023.

該費用中約有 190 萬美元直接歸因於 Centric 運營費用，另外 400,000 美元是歸因於 Centric 的無形攤銷成本增加的結果。並且還有其他與收購相關的間接費用，例如難以量化的廣告費用。例如，第一季度我們的 FDIC 存款保險費增加了 742,000 美元，其中約 300,000 美元可歸因於 Centric。展望未來，我們預計 2023 年無形攤銷費用總額為 470 萬美元，其中 210 萬美元來自 Centric 的收購，我們預計 2023 年剩餘時間的運營費用將在每季度 6300 萬至 6400 萬美元之間。

Core provision expense was a negative $2.7 million that is a release, $2.1 million of which was due to lower reserves on unfunded commitments with the remaining $0.6 million release due to the low level of charge-offs and loan growth, along with a slightly improved Moody's economic forecast within our CECL model. Centric credit marks came in very close to what we expected when we announced the transaction.

核心撥備費用為負的 270 萬美元，這是釋放，其中 210 萬美元是由於未提供資金的承諾的準備金減少，剩餘的 60 萬美元釋放是由於沖銷和貸款增長水平低，以及穆迪略有改善我們的 CECL 模型中的經濟預測。 Centric 的信用評分非常接近我們宣布交易時的預期。

There was a $10.7 million onetime day 1 provision expense for Centric as anticipated, but this is excluded from our reported core operating figures. However, including onetime credit marks for Centric, the loan loss reserve will increase from 1.35% of total loans on December 31 to 1.55% of total loans on March 31, 2023, adding further protection to capital.

正如預期的那樣，Centric 在第一天的一次性撥備費用為 1070 萬美元，但這不包括在我們報告的核心運營數據中。但是，包括 Centric 的一次性信用標記在內，貸款損失準備金將從 12 月 31 日占貸款總額的 1.35% 增加到 2023 年 3 月 31 日占貸款總額的 1.55%，進一步保護資本。

Our nonperforming loans reflect the acquisition, but credit trends continue to be strong with very low charge-offs down to 6 basis points from 11 basis points last quarter. I would direct you to new disclosures on Pages 16 through 17 of our supplement to break out our CRE and office loan portfolios.

我們的不良貸款反映了收購，但信貸趨勢繼續強勁，註銷率非常低，從上一季度的 11 個基點降至 6 個基點。我會指導您查看我們補充文件第 16 至 17 頁的新披露，以細分我們的 CRE 和辦公室貸款組合。

Finally, tangible book value per share increased from $7.92 per share at year-end to $8.13 per share due to retained earnings and a $13.1 million improvement in AOCI from $137.7 million to $124.6 million. AOCI is down to 14.8% of tangible common equity from 18.6% last quarter, and our tangible common equity ratio remains at 7.8%. I would add that if the fair value marks available for sale and held-to-maturity securities were fully realized, we would remain well capitalized.

最後，由於留存收益和 AOCI 從 1.377 億美元增加到 1.246 億美元，每股有形賬面價值從年底的每股 7.92 美元增加到每股 8.13 美元，增加了 1310 萬美元。 AOCI 從上一季度的 18.6% 降至有形普通股權益的 14.8%，我們的有形普通股權益比率保持在 7.8%。我要補充一點，如果可供出售和持有至到期證券的公允價值標記完全變現，我們將保持充足的資本。

While we have received an additional $25 million of share repurchase authorization from our Board, as Mike mentioned, we anticipate taking a measured opportunistic approach to buybacks, balancing the need to capitalize moderate loan growth and preserve capital with the opportunity to retire shares at these attractive price levels.

正如邁克所提到的，雖然我們已經從董事會獲得了額外的 2500 萬美元的股票回購授權，但我們預計會採取謹慎的機會主義方法進行回購，平衡利用適度貸款增長和保本的需要以及在這些有吸引力的股票退市的機會價格水平。

And with that, we'll take any questions you may have.

這樣，我們將回答您可能提出的任何問題。

(Operator Instructions)

（操作員說明）

We will take our first question from Frank Schiraldi with Piper Sandler.

我們將與 Piper Sandler 一起接受 Frank Schiraldi 的第一個問題。

Just in terms of the margin detail you gave on, I think you said 5 basis points of margin contraction in the second quarter, give or take. Seems really strong, especially if you're still targeting that 25% total deposit beta, I'm not sure if I missed the change there, but is that still the assumption? And can you maybe just talk about how long you think or when you think that sort of gets fully baked in to the margin?

就您提供的保證金細節而言，我認為您說的是第二季度保證金收縮 5 個基點，給予或接受。看起來真的很強，特別是如果你仍然以 25% 的總存款貝塔為目標，我不確定我是否錯過了那裡的變化，但這仍然是假設嗎？你能不能談談你想了多長時間，或者你認為那種完全被邊緣化了？

Yes. Sure, Frank. We've been spending a lot of time working on that and trying to understand that deposit movements have been so vary this quarter, but it's difficult to predict. You may recall that a year ago, we dropped our cumulative deposit beta forecast. We have been for some time saying 25% cumulative deposit beta. And then given the fact that we had almost 0% deposit betas in any -- incremental deposit betas in any given quarter last year, we dropped it to 20%. And then towards the end of last year, we said we better go back to 25%. That was our going assumption.

是的。當然，弗蘭克。我們花了很多時間研究這個問題，並試圖了解本季度的存款變動變化如此之大，但很難預測。您可能還記得，一年前，我們放棄了累積存款貝塔預測。一段時間以來，我們一直在說 25% 的累積存款貝塔。然後考慮到去年任何給定季度的任何存款貝塔幾乎為 0% 的增量存款貝塔，我們將其降至 20%。然後在去年年底，我們說我們最好回到 25%。那是我們的假設。

Well, we've done some work now to understand where deposits are going and based on current estimates, kind of extrapolating the first quarter deposit trends into the end of the year, we would calculate a deposit beta that's in the upper 20s, more like 28%. But it's impossible to peg even in an exact number like that. May be more helpful, I'd tell you that when we look at it that way, we can say that for every point of cumulative deposit beta it affects the NIM, the ending NIM for the year by about 5 basis points. So if you have a 28% cumulative beta, you have on results. And if it ends up being 30% cumulative deposit beta by the end of the year, the margin is 10 points different -- 10 points, less than that. So that maybe helps you give you some idea to the sensitivity of the NIM to the betas. But given where things are going, it's very difficult to predict exactly where deposit behavior is going to take us.

好吧，我們現在已經做了一些工作來了解存款的去向，並根據當前的估計，將第一季度的存款趨勢推斷到年底，我們將計算出 20 多歲的存款貝塔值，更像是28%。但即使是這樣的確切數字也不可能掛鉤。可能更有幫助，我會告訴你，當我們這樣看時，我們可以說，對於累積存款 beta 的每個點，它都會影響 NIM，即年末 NIM 大約 5 個基點。因此，如果您有 28% 的累積貝塔值，那麼您就有了結果。如果到年底它最終達到 30% 的累計存款貝塔值，那麼利潤率就會相差 10 個百分點——比這少 10 個百分點。因此，這可能會幫助您了解 NIM 對 beta 的敏感性。但考慮到事情的發展方向，很難準確預測存款行為將把我們帶到哪裡。

Okay. I guess when you think about that 28% or whatever it ends up being, do you sort of feel like that continues maybe for a few quarters after the Fed stops? So maybe by year-end, it's sort of fully baked in, in your analysis?

好的。我想當你想到 28% 或任何最終結果時，你是否覺得這種情況可能會在美聯儲停止後持續幾個季度？所以也許到年底，在你的分析中，它已經完全融入其中了？

Yes. And that's a great question. And our analysis actually tried to only go out one year. It's difficult to break even several quarters out, let alone going into the next year. So the way we think about it is a cumulative through-the-cycle beta, taking us to just the end of this year in a world where the Fed funds comes up a little bit by another quarter point and then drops down to 4.8% by the end of the year. Even in those results, Frank, when we do a 28% deposit beta, the NIM ends up around in the low 3.90s. And if we stress it and do a 30% cumulative deposit beta, the NIM ends up in the low 3.80s by the end of the year. And that's why we're fairly comfortable saying 5 basis points per quarter, but give or take a few at either side because no one really knows where deposits are going.

是的。這是一個很好的問題。而我們的分析實際上只嘗試了一年。連突破幾個季度都很難，更不用說進入下一年了。因此，我們認為它是一個累積的整個週期貝塔，將我們帶到今年年底的世界中，聯邦基金再增加一個四分之一點，然後下降到 4.8%年末。即使在這些結果中，弗蘭克，當我們進行 28% 的存款貝塔時，NIM 最終也處於 3.90 左右的低位。如果我們強調這一點並進行 30% 的累積存款 beta，NIM 到今年年底將達到 3.80 的低點。這就是為什麼我們很樂意每季度說 5 個基點，但在任何一方給予或接受一些，因為沒有人真正知道存款去向。

Got you. Okay. That's great color. And then just curious, I mean, it makes perfect sense. You're talking about remaining under the $10 billion and the trust sweep balances coming back on in the first quarter. Just curious what sort of rates those are at? And if you could talk about the growth in the deposit, which was still very strong, the growth in deposits at legacy FCF outside of those sweet balances coming back on in the quarter?

明白了好的。那是很棒的顏色。然後只是好奇，我的意思是，這是完全有道理的。你說的是保持在 100 億美元以下，並且信託清算餘額將在第一季度恢復。只是好奇那些利率是多少？如果你能談談仍然非常強勁的存款增長，那麼在本季度恢復的那些甜蜜餘額之外，遺留自由現金流量的存款增長？

Yes. Jim, why don't you take the rates, and I'll take the strategies.

是的。吉姆，你為什麼不拿利率，我來拿策略。

Yes. So the rates in the trust -- so the trust deposits we hold us in a fiduciary capacity for our trust clients, so there can be no better or worse than it's softer to the market. So those rates are going to be over -- probably over -- there are going to be premium rates in the market, probably about 4%. So but no better or worse than they were able to get in their sweep accounts. And so that's why we're able -- as a fiduciary to bring it back on balance sheet. And Mike, why don't you take the other question.

是的。所以信託的利率——所以我們以受託人的身份為我們的信託客戶持有的信託存款，所以沒有比它對市場更軟更好或更壞的了。所以這些利率將結束——可能結束——市場上將出現溢價，可能約為 4%。所以，但沒有比他們能夠進入他們的清算賬戶更好或更壞的了。這就是為什麼我們能夠——作為受託人將其重新納入資產負債表。邁克，你為什麼不回答另一個問題。

Yes. Just our bank President, Jane Grebenc and her Head of Corporate and Retail Banking, they have been laser-focused on a core depository for a decade and it's taken that long to build it. And we were particularly focused in the first quarter on customer outreach through our branch managers in our commercial RNs with the competitive rates that Jim mentioned. We've rebuilt the CD book. We had let that whittle down to virtually nothing.

是的。就我們的銀行行長 Jane Grebenc 和她的企業和零售銀行業務負責人而言，他們十年來一直專注於核心存款機構，並且花了很長時間才建立起來。我們在第一季度特別關注通過我們的商業 RN 中的分支經理以 Jim 提到的具有競爭力的價格拓展客戶。我們重建了 CD 書。我們已經將其削減到幾乎為零。

We have a team that's really empowered to make exceptions for clients. And we look at a good deposit base of small businesses, corporate clients, municipalities, it's long tenured, deep relationships, sticky and granular. And we just look to add to it every month, and that's a big part of the incentives for our branches who have a balance sheet and our corporate RMs. So I hope that's helpful.

我們擁有一支真正有權為客戶破例的團隊。我們著眼於小企業、企業客戶、市政當局的良好存款基礎，它是長期的、深厚的關係、粘性和細粒度的。我們只是希望每個月都增加它，這是對我們擁有資產負債表的分支機構和我們的公司 RM 的激勵的很大一部分。所以我希望這會有所幫助。

Yes. No, I appreciate that. And then if I could just sneak in one last one. You mentioned, Jim, the $63 million to $64 million in operating expense. Any change to the -- I think it was 35% expense saves in the Centric deal? And then when are those fully baked in by.

是的。不，我很感激。然後，如果我能偷偷溜進最後一個。吉姆，你提到了 6300 萬至 6400 萬美元的運營費用。有什麼變化——我認為 Centric 交易中節省了 35% 的費用？然後什麼時候完全烘烤。

We had -- when we announced that we projected that those will be fully baked in by the first full year, which will be next year, but we think we'll be able to -- we're on track to achieve that 35% this year.

我們已經 - 當我們宣布我們預計這些將在明年的第一個完整年度完全融入時，但我們認為我們將能夠 - 我們有望實現 35%今年。

And we will take our next question from Karl Shepard with RBC Capital Markets.

我們將接受 Karl Shepard 與 RBC Capital Markets 的下一個問題。

I appreciate all the color on deposit betas. But I guess I wanted to follow up to and ask about asset yields. Just kind of what are you thinking about asset yield lift as we roll through kind of the back half of the year assuming kind of your rate forecast?

我欣賞存款貝塔的所有顏色。但我想我想跟進並詢問資產收益率。當我們假設您的利率預測在今年下半年滾動時，您對資產收益率提升有什麼看法？

Actually, the asset deals are -- we're still asset sensitive. And so there's still upside on the asset side. If you look at where we kind of went this quarter, it was a quarter where the Fed rate raised 50 basis points, and the asset yields went up by about 50 basis points. So kind of -- I'm not sure if it works that way every quarter, but that's kind of a 100% loan beta at least for the first quarter this year.

實際上，資產交易是——我們仍然對資產敏感。因此，資產方面仍有上行空間。如果你看看我們本季度的走勢，這個季度美聯儲利率上調了 50 個基點，資產收益率上升了約 50 個基點。有點——我不確定它是否每個季度都以這種方式運作，但至少在今年第一季度，這是一種 100% 的貸款貝塔。

But the new loans are coming on a really nice yield. I'm sorry, Mike...

但是新貸款的收益率非常好。對不起，邁克……

No, no, go ahead.

不，不，繼續。

Yes. So we're pleased to see where that's happening. And so even with -- for example, some portfolios with minimal loan growth, the replacing yields are still pretty strong. Significant portfolio doesn't grow. The new loans that are coming on are coming out of higher rates of the loans that are coming off.

是的。所以我們很高興看到發生了什麼。因此，即使 - 例如，一些貸款增長最小的投資組合，替代收益率仍然相當強勁。重要的投資組合沒有增長。即將到來的新貸款來自即將到期的貸款的更高利率。

Yes. And Centric added a little to our asset sensitivity, probably just over 2/3 of the commercial loans were variable -- that's right.

是的。 Centric 增加了我們的資產敏感性，可能超過 2/3 的商業貸款是可變的——沒錯。

Okay. And then kind of switching over to lending. I think, Mike, you mentioned taking a measured approach, I think, was your wording. Just curious what's driving that? I noticed maybe lower construction commitments in the materials, but just can you help me understand that? And it feels like maybe a slight tweak in the loan growth outlook, but I don't think you guys are signaling still a kind of a weaker environment.

好的。然後有點轉向貸款。我想，邁克，你提到了採取慎重的方法，我認為，這是你的措辭。只是好奇是什麼驅動了它？我注意到材料中的施工承諾可能較低，但你能幫我理解一下嗎？感覺貸款增長前景可能會略有調整，但我不認為你們發出的信號仍然是一種較弱的環境。

Yes. I think the -- it's determined by price and some of the yields on some of our consumer categories had gotten a little tight. So we raised some rates and that restricted some volume, particularly in the indirect business. We're still doing a lot of indirect, more -- a little bit more on our terms. We have a very experienced leader there. We like the business we're getting, just not as much of it.

是的。我認為 - 它是由價格決定的，我們某些消費類別的一些收益率已經變得有點緊張。所以我們提高了一些利率，這限制了一些交易量，特別是在間接業務中。我們仍在做很多間接的、更多的——根據我們的條件多一點。我們那裡有一位非常有經驗的領導者。我們喜歡我們得到的業務，只是沒有那麼多。

And then I also think -- some of the businesses have slowed down a bit. Mortgage has hopefully bottomed out, and they're turning the corner there. And the commercial side, the commercial real estate has backed up a little bit as well. We have nice pipelines, I would say more so in C&I in our regions than we've had in a while. And so that's -- and also, obviously, our new Equipment Finance business, everything that's put on there, will stick to the balance sheet since that's relatively new.

然後我也認為 - 一些業務已經放緩了一點。抵押貸款有望觸底，他們正在那裡轉彎。在商業方面，商業地產也有所支持。我們有很好的管道，我想在我們地區的 C&I 中說的比我們有一段時間要多。所以這就是 - 而且，顯然，我們新的設備金融業務，所有放在那裡的東西，都會堅持資產負債表，因為它相對較新。

(Operator Instructions) And we will take our next question from Daniel Tamayo with Raymond James.

（操作員說明）我們將從 Daniel Tamayo 和 Raymond James 那裡回答下一個問題。

Maybe first, we can start on the office commercial real estate portfolio. I appreciate the new disclosures. But if you could just talk about maybe the dispersion of that office portfolio, kind of where it is within your markets, if there's any of it kind of Central Business District, particularly the big metro areas that you get listed on that slide?

也許首先，我們可以從辦公室商業房地產組合開始。我很欣賞新的披露。但是，如果你能談談辦公樓組合的分佈，它在你的市場中的位置，是否有任何中央商務區，特別是你在幻燈片上列出的大都市區？

I'll hand it off to Brian Karrip, our Chief credit officer, in a minute. But just a $5.4 million average commitment rent per square foot in the space of about $17.65 -- or, $17.65, which is really well below East and West Coast rents and then good debt service coverage of about $1.53 and loan to value of 63.2%, which just means that vacancy could go up quite a bit and a developer -- it won't break the developer. Brian, why don't you add a little more commentary to Slide 17.

我會在一分鐘內將其交給我們的首席信貸官 Brian Karrip。但在大約 17.65 美元或 17.65 美元的空間內，每平方英尺的平均承諾租金僅為 540 萬美元，這確實遠低於東海岸和西海岸的租金，而且良好的償債覆蓋率約為 1.53 美元，貸款價值率為 63.2%，這只是意味著空置率可能會上升很多，而開發商——它不會破壞開發商。布賴恩，你為什麼不在幻燈片 17 中添加更多評論。

Thank you. Thanks, Mike, and thanks, Daniel, for your question. So when we think about our book and the dispersion of the portfolio, we have a subscription with a global real estate firm that provides information and analytics, and we receive monthly updates. We think that our portfolio has behaved as well, if not better than most others. Let's talk about the materials we gave you.

謝謝。謝謝邁克，也謝謝丹尼爾提出你的問題。因此，當我們考慮我們的書和投資組合的分散時，我們訂閱了一家提供信息和分析的全球房地產公司，並且我們每月收到更新。我們認為我們的投資組合即使不比大多數其他投資組合表現得更好，也同樣表現出色。說說我們給你的材料吧。

Our markets are stable and very predictable. As we break our portfolio down and think about our geographic dispersion across each of the markets identified on Slide 17, we further define it as what a Central Business District and what is in the suburban. So we have about $87 million that is in Central Business District. and it's performing reasonably well.

我們的市場穩定且非常可預測。當我們分解我們的投資組合併考慮我們在幻燈片 17 中確定的每個市場的地理分佈時，我們進一步將其定義為中央商務區和郊區。所以我們在中央商務區有大約 8700 萬美元。而且它的表現相當不錯。

As we think about the balance of the book and the materials we provided, there were only 2 loans above $15 million in the portfolio. One loan is secured by multiple properties, and those are leased to the federal government. And the second loan is got a tenant that's a global credit tenant. So the office book has performed fine, notwithstanding all the concern and the noise.

當我們考慮賬面餘額和我們提供的材料時，投資組合中只有 2 筆貸款超過 1500 萬美元。一筆貸款由多處房產擔保，這些房產出租給聯邦政府。第二筆貸款的租戶是全球信貸租戶。因此，儘管有種種擔憂和喧囂，辦公簿的表現還是不錯的。

We focus on this book and have focused on it since the pandemic. And it may not come out in the slides, but we're down about $77 million over the past year or so, 14 months, and we'll continue to work to appropriately size this book, given the economic conditions.

我們專注於這本書，並且自大流行以來一直專注於它。它可能不會出現在幻燈片中，但我們在過去一年左右的 14 個月裡減少了大約 7700 萬美元，我們將繼續努力，考慮到經濟狀況，適當調整這本書的規模。

That's great color. I appreciate all that. And then switching gears to my follow-up here for you, Jim. The reserves are much stronger after the deal now at 1.55. Just curious on your facts, if you think that still will drift up potentially from here obviously, a lot of questions in terms of what would happen in the environment, but just interested in your thoughts about the ACL here.

那是很棒的顏色。我很感激這一切。然後切換到我在這里為你跟進的話題，吉姆。交易完成後儲備更加強勁，現在為 1.55。只是對您的事實感到好奇，如果您認為顯然仍然有可能從這裡漂移，那麼很多關於環境中會發生什麼的問題，但只是對您對此處 ACL 的想法感興趣。

No, I appreciate that a lot. And I'll start and then Brian, if you have some further thoughts, you can add to it as well. With the acquisition and the marks, the mark contributed to the ACL and give us a little bit of a reset following the acquisition nice higher level of 1.35 to 1.55. So if anything, that compares more favorably to peers than it did before, it creates a little less pressure in that sense.

不，我很感激。我先開始，然後是 Brian，如果你有進一步的想法，也可以添加。通過收購和標記，標記對 ACL 做出了貢獻，並在收購後將 1.35 提高到 1.55 後給我們帶來了一些重置。因此，如果有的話，與同行相比，它比以前更有利，從這個意義上說，它造成的壓力要小一些。

After this kind of reset for the acquisition, then the normal pressures just resume. Provision expense is going to be driven by loan growth and then changes in our Moody's economic forecast. So after the reset, it's kind of back to the same pressure as it was before and have been for a while. Brian, I don't know if there's anything you wanted to add to that?

在這種收購重置之後，正常壓力就會恢復。撥備費用將受到貸款增長的推動，然後是我們穆迪經濟預測的變化。所以在重置之後，它有點回到和以前一樣的壓力，並且已經有一段時間了。布賴恩，我不知道你是否還有什麼要補充的？

No, that was well put.

不，說得很好。

We hope that is outstanding.

我們希望這是傑出的。

It does. Appreciate it. That's all for me.

確實如此。欣賞它。這就是我的全部。

And we'll take our next question from Matthew Breese with Stephens.

我們將與 Stephens 一起接受 Matthew Breese 的下一個問題。

A few modeling questions on my end. Sorry if I missed it in your opening comments, but I was curious what accretable yield was for the quarter and then the outlook for the rest of the year?

我這邊的一些建模問題。抱歉，如果我在您的開場白中錯過了它，但我很好奇本季度的增產率是多少，然後是今年剩餘時間的前景？

It's about 5.5 basis points in the quarter. It's hard to give you because the CECL is going to go up and down based on how credit performs. So it's hard to give you kind of where that's going to go for the rest of the year, but it's 5.5 for the first quarter.

本季度約為 5.5 個基點。很難給你，因為 CECL 會根據信用表現上下波動。所以很難告訴你今年餘下時間的情況，但第一季度是 5.5。

Okay. And then I hope...

好的。然後我希望...

(inaudible) rest of the year and I will update you as we go along.

（聽不清）今年剩下的時間，我會在我們進行時向您更新。

Okay. And then turning to the securities portfolio. It's been a decline for 5 or 6 quarters now. Just wanted to get an updated message on what you're doing with cash flows there and if there's any appetite to add to it?

好的。然後轉向證券投資組合。現在已經下降了 5 或 6 個季度。只是想獲得有關您在那里處理現金流量的最新消息，以及是否有興趣添加它？

Jim?

吉姆？

Yes, thanks for asking. Great question. We do -- I think it will change our approach. We -- as you noted, we have been letting it run off to fund loan growth and expectations for strong loan growth, and it's really come down to a pretty low level, about 12% of total assets. As I mentioned in the prepared remarks, towards the end of the quarter, we stockpiled cash by basically borrowing from the FHLB and putting on deposit with the Federal Reserve. But we'll probably deploy that excess cash into securities at a measured pace with dollar cost average into the market, not all at once, but we'll probably deploy that to grow the securities portfolio.

是的，謝謝你的詢問。很好的問題。我們這樣做 - 我認為這將改變我們的方法。我們 - 正如您所指出的那樣，我們一直在讓它為貸款增長和對強勁貸款增長的預期提供資金，而且它確實下降到相當低的水平，約佔總資產的 12%。正如我在準備好的評論中提到的那樣，到本季度末，我們基本上通過從 FHLB 借款並存入美聯儲來儲存現金。但我們可能會以有節制的速度將多餘的現金部署到證券中，平均美元成本進入市場，而不是一次全部，但我們可能會部署它來增加證券投資組合。

And one way to think about that is, if we add just reinvested ordinary cash flow for those last couple of quarters, the securities portfolio will be at a higher level. And so this will be a way to kind of replicate that redeployment of the cash flow and get it back up to a little bit higher level.

一種思考方式是，如果我們只添加最後幾個季度的再投資普通現金流，證券投資組合將處於更高水平。因此，這將是一種複制現金流重新部署並將其恢復到更高水平的方法。

Okay. Do you care to give us some reference point in terms of securities to assets that you feel most comfortable with?

好的。你願意給我們一些你覺得最舒服的資產證券參考點嗎？

I would -- right now, I don't know exactly. But right now, I'm contemplating adding about $100 million of securities portfolio balance from here by the end of the year.

我會 - 現在，我不完全知道。但現在，我正在考慮在年底前從這裡增加約 1 億美元的證券投資組合餘額。

Okay. The other subject, we didn't quite fully flesh out was just thoughts around fee income, some of the moving parts there this quarter and then the outlook for the rest of the year is hoping for some color there.

好的。另一個主題，我們沒有完全充實，只是關於費用收入的想法，本季度那裡的一些移動部分，然後今年剩餘時間的前景希望那裡有一些顏色。

Yes. The downdraft here, the last year or so it has been with our gain on sale businesses, primarily SBA and mortgage and just had lunch with our mortgage head last week. And hopefully, we've bottomed out, and we can make some progress there. And we think that long term is a -- will be a strength of the bank. And right now, these -- 2 of the key businesses are struggling a bit and are a little bit below our internal budgets as well. And so we think we can pick up and improve that line item from here towards the end of the year.

是的。這裡的下跌，在過去一年左右的時間裡，我們在銷售業務上的收益，主要是 SBA 和抵押貸款，上周剛剛與我們的抵押貸款負責人共進午餐。希望我們已經觸底，我們可以在那裡取得一些進展。而且我們認為長期是 - 將成為銀行的優勢。而現在，這些 - 2 個關鍵業務正在苦苦掙扎，並且也略低於我們的內部預算。因此，我們認為我們可以在年底前從這裡挑選並改進該項目。

Got it. Okay. And then Maybe, Mike, just commenting on M&A from here. Would love to get a sense for geographically, which direction you'd like to head East or West? And then give us kind of an updated thought on kind of sizing of any potential targets that you might be interested in?

知道了。好的。然後，邁克，也許，只是從這裡評論併購。想從地理上了解一下，您想向東還是向西？然後給我們一些關於您可能感興趣的任何潛在目標規模的最新想法？

Well, the first thing, order of business is announcing closing and converting a bank are the easy part. The hard part is having a ground game and growing a great franchise and a footprint that we just acquired. And we're working hard on that every month. We had actually modeled just because of our history with M&A, a little downdraft initially with deposits and loans, and we put that into our deal math.

好吧，首先，業務順序是宣布關閉和轉換銀行是比較容易的部分。困難的部分是開展一場地面比賽並發展一個偉大的特許經營權和我們剛剛獲得的足跡。我們每個月都在為此努力。我們實際上只是因為我們在併購方面的歷史而建模，最初存款和貸款有點下降，我們將其納入我們的交易數學。

And -- but we need -- we want to hit the ground running in the second half of the year and certainly well into 2024, but those are great markets. It's a great opportunity. Those branches, we think we can -- they can become a terrific depository for us. We're off to a good start. And those are markets that have a little stronger demographics than we're used to in Western Pennsylvania, more like Ohio.

而且——但我們需要——我們希望在今年下半年開始運作，當然要到 2024 年，但那些都是偉大的市場。這是一個很好的機會。那些分支機構，我們認為我們可以——它們可以成為我們一個了不起的存放處。我們有了一個良好的開端。這些市場的人口統計數據比我們在西賓夕法尼亞州（更像俄亥俄州）所習慣的要強一些。

In terms of our preference for growth, just stating a fact, Ohio has been very good to us. We've had double-digit growth there on the loans and deposits side now for 5 or 6 years. Our little $180 million bank in Cincinnati is now over $700 million in assets. Columbus and Northern Ohio are now $1.2 billion and $1.3 billion, respectively. They can fill in with the depository and get a better loan-to-deposit ratio like we have in Pennsylvania, but there's a lot of upside there.

就我們對增長的偏好而言，只是陳述一個事實，俄亥俄州對我們非常好。我們在貸款和存款方面已經有 5 或 6 年的兩位數增長。我們在辛辛那提的 1.8 億美元小銀行現在的資產已超過 7 億美元。哥倫布和北俄亥俄現在分別是 12 億美元和 13 億美元。他們可以像我們在賓夕法尼亞州那樣用存款來填補並獲得更好的貸存比，但那裡有很多好處。

And we like those markets, and they've been good to us. Pennsylvania is our home state, and we have $3.4 billion in Community Pennsylvania in deposits. That's kind of the bread basket of the company. To the extent that we could do things in market or contiguous to that, and Jim and I use about -- and Jane about rural depositories all the time, we love them. And so there's all kinds of opportunities that they tend to be kind of episodic in terms of how they present themselves.

我們喜歡這些市場，它們對我們有好處。賓夕法尼亞州是我們的家鄉，我們在賓夕法尼亞社區擁有 34 億美元的存款。那是公司的麵包籃。在某種程度上，我們可以在市場上或與之相鄰的地方做事，而吉姆和我一直在使用關於 - 和簡關於農村存款的信息，我們喜歡它們。因此，就他們如何展示自己而言，他們往往會出現各種機會。

But we're trying to -- there's a lot of good banks out there that we can partner with. And in terms of size, I think our history is probably fairly indicative of what might be our future. We've done really small deals, $200 million and up to -- Centric was the largest at $1.1 billion and -- but very manageable. And that way, if you get sideways for a few months, you can figure it out and press forward.

但我們正在努力——有很多我們可以與之合作的優秀銀行。就規模而言，我認為我們的歷史可能很好地預示了我們的未來。我們已經完成了非常小的交易，2 億美元，最多——Centric 是最大的，達到 11 億美元——但非常易於管理。這樣一來，如果你橫盤幾個月，你就可以弄清楚並繼續前進。

And we expect deals to not only be accretive to earnings but really accretive to profitability long term. And that's a little higher standard. And the things we've done in Ohio have done exactly that for us. We were a 60-plus efficiency bank. We were an ROA that couldn't get to 1. And that's all changed in the last 5 or 6 years with some good acquisitions. And then quite frankly, most of that is organic. But that's probably more color than you bargained for, but it's -- I wish it was -- you could almost bake it into your plan, but you and I both know you can't. At least if you're selective, you can't...

我們預計交易不僅會增加收益，而且會真正增加長期盈利能力。那是更高的標準。我們在俄亥俄州所做的事情正是為我們做到了這一點。我們是一家擁有 60 多名員工的效率銀行。我們是一個無法達到 1 的 ROA。在過去的 5 或 6 年裡，隨著一些好的收購，這一切都發生了變化。然後坦率地說，其中大部分是有機的。但這可能比你討價還價的顏色更多，但它——我希望它是——你幾乎可以把它融入你的計劃，但你我都知道你不能。至少如果你有選擇性，你不能...

No, I understand, and I appreciate all the color. That's all I had.

不，我明白，我欣賞所有的顏色。這就是我的全部。

(Operator Instructions) And we'll take our next question from Manuel Navas with D.A. Davidson.

（操作員說明）我們將與 D.A. 一起接受 Manuel Navas 的下一個問題。戴維森。

Just thinking about the loan portfolio and the mid-single-digit loan growth guide, can you kind of go into a little more detail on the mix of it going forward? I know you talked a little bit about consumer pulling back a little bit, but just a little more color on the mix. And it's going to be first half weighted or not? Any kind of thoughts on that end as well?

僅考慮貸款組合和中個位數貸款增長指南，您能否更詳細地介紹一下未來的組合？我知道你談到了一點關於消費者退縮一點，但只是混合了更多的顏色。它是否會是上半年加權的？對此有什麼想法嗎？

Yes. When you look back the last several years, the first quarter at least for us has always been light, and we've tended to do better in the second half of the year. I don't know if that's a trend, but it certainly has been the case for the last 2 or 3 years. As I look at kind of on Page 7, our -- actually, it's not Page 7, sorry about that. I think it's Page 4 loans -- Page 6. I think we have an opportunity to grow C&I.

是的。當你回顧過去幾年時，至少第一季度對我們來說一直很輕鬆，而我們在下半年往往會做得更好。我不知道這是否是一種趨勢，但過去 2 或 3 年確實如此。正如我在第 7 頁上看到的那樣，我們的 - 實際上，它不是第 7 頁，對此感到抱歉。我認為這是第 4 頁貸款——第 6 頁。我認為我們有機會發展 C&I。

Construction has been good to us that can present some opportunities. Commercial real estate, we've picked up a lot of commercial real estate with Centric. We'd like to grow the C&I, the small business, and I think this where we would start. And -- but we have good mortgage, commercial real estate and other portfolios that just are a little harder in a higher rate environment. And indirect auto, as I mentioned, where you really need to get the right pricing and the right deal.

建設對我們有好處，可以提供一些機會。商業地產，我們已經通過 Centric 收購了很多商業地產。我們想發展 C&I，小型企業，我認為這是我們的起點。而且——但我們有良好的抵押貸款、商業房地產和其他投資組合，這些投資組合在利率較高的環境下會更難一些。正如我提到的，間接汽車，你真的需要獲得正確的定價和正確的交易。

And so I think it will come on the C&I side and maybe a little bit on the branch side, the branch consumer lending side. Certainly, on Equipment Finance, that business is ramping up a little slower than we expected, but nonetheless, it will be meaningful this year. I think we're looking at over $200 million there alone. So that will help the C&I side. Is this helpful? I don't mean to ramble.

因此，我認為它會出現在 C&I 方面，可能會出現在分支機構方面，即分支機構消費貸款方面。當然，在設備金融方面，該業務的增長速度比我們預期的要慢一些，但儘管如此，今年仍將是有意義的。我認為我們僅在這方面就超過 2 億美元。這將有助於 C&I 方面。這有幫助嗎？我不是要閒逛。

Right. I was going to ask about Equipment Finance specifically. So that was kind of helpful with that target.

正確的。我打算專門問一下設備金融。因此，這對實現該目標很有幫助。

Jim anything or Jane, you're on the line. Anything I missed? Jane?

吉姆或簡，你在線。我錯過了什麼嗎？簡？

No. I think that we're really targeting. As you said, Mike, C&I and we will get a fair share of commercial real estate. And that's why you have lots of businesses because when some are down, the others can carry the water.

不，我認為我們真的是在瞄準。正如你所說，邁克、C&I 和我們將獲得公平份額的商業地產。這就是為什麼你有很多生意，因為當一些生意不景氣時，其他人可以挑水。

Okay. Can I flip that to kind of deposit side, just kind of thoughts on where the noninterest-bearing percentage can stay stable or where it can fall to? And a lot of your new growth is [CDD.] I'm just wondering how high that book can get just as you kind of play out across the year and grow deposits?

好的。我可以把它轉到存款方面嗎，只是想一下無息百分比可以保持穩定還是可以下降到哪裡？你的很多新增長都是 [CDD]。我只是想知道這本書能漲到多高，就像你全年玩遊戲並增加存款一樣？

Yes. Jim, you've modeled it. So...

是的。吉姆，你已經模仿過了。所以...

Yes. So the [NIV,] the total deposits was 33% last quarter, fell to 29% this quarter. It was 25% pre-pandemic. So it probably settles somewhere in the mid- to high 20s.

是的。因此 [NIV] 上季度總存款為 33%，本季度降至 29%。這是大流行前的 25%。所以它可能會穩定在 20 年代中期到中期。

And then the CD book was so low before like just 2 quarters ago, where could that get to? I mean, you just have capacity there. Just kind of thoughts on more normalized CD book.

然後 CD 書之前就像 2 個季度前那麼低，那能到哪裡去？我的意思是，你只是有能力。只是對更規範化的 CD 書的一些想法。

It's a fair question, but I don't have an answer for it. I don't know as a percentage of total deposits. We're definitely rebuilding it. We had let it go to 0. We had really during the pandemic focused on trying to get our total cost of deposits as close to 0 as possible. And so with a conscious idea to not pursue time deposits, and we are doing that.

這是一個公平的問題，但我沒有答案。我不知道佔總存款的百分比。我們肯定會重建它。我們讓它降為 0。在大流行期間，我們確實專注於努力使我們的總存款成本盡可能接近 0。因此，有意識地不追求定期存款，我們正在這樣做。

I would say one thing that's really encouraging is a little anecdote that might be helpful to you. As we put out time deposits now, we find that a lot of the customers that we have are very loyal to us and have taken money -- pick up their operating accounts with us, but idle cash balances that because we're offering sectional rates, they took them somewhere else, and now they're bringing them back.

我想說一件真正令人鼓舞的事情是可能對您有所幫助的小軼事。當我們現在存入定期存款時，我們發現我們擁有的很多客戶都對我們非常忠誠並且已經拿了錢——從我們這裡提取他們的經營賬戶，但閒置的現金餘額是因為我們提供分段利率，他們把它們帶到了其他地方，現在他們又把它們帶回來了。

So we have found, is that when we put out a time deposit special and we track dollars. For every $100 million, we attract just say, about $50 million of that will be our own money. That's customers that kept it in a noninterest-bearing account or a savings account, may take advantage of a CD special.

所以我們發現，當我們推出特別定期存款時，我們會跟踪美元。對於每 1 億美元，我們只能說，其中大約 5000 萬美元將是我們自己的錢。將其保存在無息賬戶或儲蓄賬戶中的客戶可以利用 CD 特別優惠。

But about $25 million will be money from our own customers that they kept somewhere else, some other bank. They bring back to us. And then the last $25 million is new money coming from outside the bank. So hopefully, that gives you a little color on how things are moving. But, we do have...

但大約 2500 萬美元將來自我們自己的客戶，他們將這些錢存放在其他地方，其他銀行。他們帶回給我們。然後最後的 2500 萬美元是來自銀行外部的新資金。所以希望這能讓你對事情的進展有所了解。但是，我們確實有...

And we had the luxury of doing that simply because, Jane and the team, our business bankers, our commercial bankers, our branch managers, I mean, their primary charge is to go out and get a noninterest-bearing deposit account and a core depository from a small business. And not all branch employees and banks run their retail model that way. But Jane and the team do, and that really put us in a strong position where really over half of our depository was noninterest-bearing and now accounts are low interest checking.

我們有幸這樣做只是因為，簡和團隊，我們的商業銀行家，我們的商業銀行家，我們的分行經理，我的意思是，他們的主要職責是出去獲得一個無息存款賬戶和一個核心存款來自一家小企業。並非所有分行員工和銀行都以這種方式運行他們的零售模式。但 Jane 和他的團隊做到了，這確實讓我們處於有利地位，我們一半以上的存款是無息的，現在賬戶是低息支票。

And so I think it will be natural that perhaps we can grow because our customers are loyal. We just didn't give them a really attractive CD option. Jane, anything you want to add? This is your baby.

因此，我認為很自然地，也許我們可以成長，因為我們的客戶是忠誠的。我們只是沒有給他們一個真正有吸引力的 CD 選項。簡，你有什麼要補充的嗎？這是你的寶貝。

No, I don't think so, Mike. I think you've covered it.

不，我不這麼認為，邁克。我想你已經涵蓋了它。

Let me just add one bit that might also be helpful with you in terms of deposit flows within the bank. We gave a number for the amount of noninterest bearing that -- decline in noninterest bearing over the course of the quarter. On the average, it was $180 million and change. And -- but money market went up, other deposit categories went up, CD definitely went up.

讓我補充一點，在銀行內部的存款流動方面也可能對您有所幫助。我們給出了一個數字來說明非利息負擔的數量——本季度非利息負擔的下降。平均而言，它是 1.8 億美元，而且還在變化。而且 - 但貨幣市場上漲，其他存款類別上漲，CD 肯定上漲。

Yes, here's just one dynamic for you. We have offered the ICS product for a long time. That's the product we all know about now that allows customers to break up their deposits and receive virtually unlimited deposit insurance. It's a product we've had for years. And now there's much more awareness of it and so customers are taking advantage of it. There's a cost to it. There always has been.

是的，這只是您的一種動態。我們長期以來一直提供 ICS 產品。這是我們現在都知道的產品，它允許客戶分期存款並獲得幾乎無限制的存款保險。這是我們多年來一直擁有的產品。現在人們對它有了更多的認識，所以客戶正在利用它。這是有代價的。一直都有。

And so the different environment, customers were willing to pay that cost. And things have changed. So we saw -- while we saw noninterest-bearing deposits go down, we saw the ICS balances go up from about $100 million to $200 million over the course of the quarter. So that's a lot of noninterest-bearing money that just becomes an now account basically within their interest, but stays at the bank. So we're happy to offer that and our customers really appreciate it.

等不同的環境，客戶願意付出那個成本。事情發生了變化。所以我們看到——雖然我們看到無息存款下降，但我們看到 ICS 餘額在本季度從大約 1 億美元增加到 2 億美元。所以這是很多不計息的錢，基本上在他們的興趣範圍內成為一個現在的賬戶，但留在銀行。所以我們很樂意提供這一點，我們的客戶也非常感激。

That's great color. Can I shift with one last question. You have your fund outlook -- your Fed funds outlook that has a little bit of a lower end point for the year. Kind of how is -- how are you positioned for a potential rate decline to some point?

那是很棒的顏色。我可以換個最後一個問題嗎？你有你的基金前景——你的聯邦基金前景今年的終點有點低。怎麼樣 - 你如何定位潛在的利率下降到某個點？

Yes, we're still asset sensitive. So we are considering, but have not executed on derivative strategies that would either -- swap either assets or liabilities to reduce that asset sensitivity. Some of the natural things we're doing will blunt the asset sensitivity a little bit. For example, when we -- I talked about stockpiling cash at the end of the quarter, we borrowed that with overnight money. As we deploy them to securities with some kind of term, usually 4 to 5 years as we typically have bought in the past, that will produce a little bit of liability sensitive -- liability -- it will produce a liability-sensitive layer that will blunt our asset sensitivity a little bit.

是的，我們仍然對資產敏感。因此，我們正在考慮但尚未執行衍生策略，即交換資產或負債以降低資產敏感性。我們正在做的一些自然的事情會稍微降低資產敏感性。例如，當我們——我談到在季度末儲備現金時，我們用隔夜錢借了錢。當我們將它們部署到具有某種期限的證券時，通常是 4 到 5 年，就像我們過去通常購買的那樣，這將產生一點責任敏感 - 責任 - 它會產生一個責任敏感層，它將稍微降低我們的資產敏感性。

And then as we grow businesses, especially like Equipment Finance, which is -- has very few prepayments and really has an average life closer to the stated life. That gives us a little bit more duration too, and that helps a little bit organically to blunt against the lower rates.

然後隨著我們發展業務，尤其是像設備金融這樣的業務，它的預付款很少，而且平均壽命確實更接近規定的壽命。這也給了我們更多的持續時間，這有助於有機地抵禦較低的利率。

And that has been our strategy organically. We've used hedges in the past, but we've been very intentional about being 50% variable and 50% fixed. And we've become aware when we veer off of that and then organically, we try to get back there. We just think it's straight pool.

這一直是我們的有機戰略。我們過去使用過對沖，但我們一直非常有意將 50% 可變和 50% 固定。當我們偏離它時，我們已經意識到，然後有機地，我們試圖回到那裡。我們只是認為它是直池。

And we will take our next question from Dan Cardenas with Jamie Montgomery Scott.

我們將與 Jamie Montgomery Scott 一起接受 Dan Cardenas 的下一個問題。

Just -- most of my questions have been asked and answered. Just a couple quick questions on the deposit front. I mean I've noticed a number of larger financial institutions kind of tapped the broker deposit market this quarter. Wondering if there's any brokered CDs in your book at quarter end? And then also maybe some color as to your desire, if any, to use the bank term funding program?

只是——我的大部分問題都已經被問到並得到了回答。關於存款方面的幾個簡單問題。我的意思是，我注意到本季度許多較大的金融機構都在利用經紀人存款市場。想知道季度末您的書中是否有任何代理 CD？然後也許還有一些關於您使用銀行定期融資計劃的願望（如果有的話）的顏色？

I think on Page 13 , we have your answer. I do think we've got some broker deposits from Centric, but I don't think we've had on that.

我想在第 13 頁，我們有您的答案。我確實認為我們從 Centric 那裡獲得了一些經紀人存款，但我認為我們沒有。

Yes. No, Dan, I'm so glad you asked because we have not had any broker deposits, but now we are showing $18.7 million. They are all acquired from Centric. So we really have not had any appetite or desire to use broker deposits wholesale funding in the past. But we inherited those in the acquisition.

是的。不，丹，我很高興你提出這個問題，因為我們沒有任何經紀人存款，但現在我們顯示了 1870 萬美元。它們都是從 Centric 獲得的。因此，我們過去確實沒有任何胃口或希望使用經紀人存款批發資金。但是我們在收購中繼承了那些。

And what was your other question? Sorry.

你的另一個問題是什麼？對不起。

Any desire to maybe use the bank term funding program?

是否希望使用銀行定期資助計劃？

We've been evaluating it. We have not tapped into that, but we are evaluating it. It seems like some of the financial terms could be attractive. But we want to make sure that there's been a stigma or signaling effect from tapping it in the market. And so we were eager to see the reaction in the market to others that might have tapped into that and how that appears because there may be some financial advantages to using some of that facility. But to date, we have not.

我們一直在評估它。我們還沒有利用它，但我們正在評估它。一些財務條款似乎很有吸引力。但我們想確保在市場上利用它會產生恥辱感或信號效應。因此，我們渴望看到市場對其他可能已經利用它的人的反應，以及它的表現如何，因為使用其中一些設施可能會帶來一些財務優勢。但迄今為止，我們還沒有。

And there are no further questions at this time. So I will now turn the call back to Mr. Mike Price for any additional or closing remarks.

目前沒有其他問題。因此，我現在將把電話轉回給 Mike Price 先生，以徵求任何補充意見或結束意見。

Well, thank you again. We appreciate the partnership. We appreciate the opportunity to be with a number of you -- several of you every quarter, and we always learn from your perspective, and thank you for your great questions today. Take care.

嗯，再次謝謝你。我們感謝合作夥伴關係。我們很高興有機會與你們中的許多人在一起——每個季度你們中的一些人，我們總是從你們的角度學習，感謝你們今天提出的重要問題。小心。

Ladies and gentlemen, this concludes today's conference call. We thank you for your participation. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。我們感謝您的參與。您現在可以斷開連接。