First Citizens BancShares Inc (Delaware) (FCNCP) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the First Citizens BancShares First Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded. I would now like to introduce the host of this conference call, Ms. Deanna Hart, Senior Vice President of Investor Relations. You may begin.

女士們，先生們，感謝你們的支持，歡迎來到 First Citizens BancShares 2023 年第一季度收益電話會議。 （操作員說明）提醒一下，今天的會議正在錄製中。我現在想介紹一下本次電話會議的主持人，投資者關係高級副總裁 Deanna Hart 女士。你可以開始了。

Good morning, everyone. Thank you for joining our first quarter earnings call. Our Chairman and Chief Executive Officer, Frank Holding; our President, Peter Bristow; and our Chief Financial Officer, Craig Nix, will provide an update on the FCB acquisition, our first quarter and 2023 outlook.

大家，早安。感謝您參加我們的第一季度財報電話會議。我們的董事長兼首席執行官 Frank Holding；我們的總裁 Peter Bristow；我們的首席財務官 Craig Nix 將提供有關 FCB 收購的最新信息、我們第一季度和 2023 年的展望。

During the call, we will be referencing our investor presentation, which you can find on our website. Our comments will include forward-looking statements, which are subject to risks and uncertainties that may cause our results to differ materially from expectations. We assume no obligation to update such statements. These risks are outlined for your review on Page 3.

在電話會議期間，我們將參考我們的投資者介紹，您可以在我們的網站上找到。我們的評論將包括前瞻性陳述，這些陳述受風險和不確定因素的影響，可能導致我們的結果與預期存在重大差異。我們不承擔更新此類聲明的義務。第 3 頁概述了這些風險，供您查看。

We will also be referencing non-GAAP financial measures. Reconciliations of these measures against the most directly comparable GAAP measures are found in Section 8 of the presentation. First Citizens is not responsible for and does not edit nor guarantee the accuracy of our earnings teleconference transcripts provided by third parties. I will now turn it over to Frank.

我們還將參考非 GAAP 財務措施。在演示文稿的第 8 節中可以找到這些措施與最直接可比的 GAAP 措施的調節。 First Citizens 不對第三方提供的我們的收入電話會議記錄的準確性負責，也不對其進行編輯或保證其準確性。我現在將把它交給弗蘭克。

Thank you, Deanna, and good morning, everyone. Starting on Page 5. We announced another quarter of solid financial results. As you know, we're a TBV-focused company, and we're pleased that the acquisition of SVB resulted in 112% TBV accretion on the acquisition date and 106% after the CECL adjustment. This transaction meaningfully boosted our capital base, providing us with an even more solid foundation to continue growing profitably while delivering long-term value to our shareholders.

謝謝你，迪安娜，大家早上好。從第 5 頁開始。我們宣布了又一個季度穩健的財務業績。如您所知，我們是一家專注於 TBV 的公司，我們很高興收購 SVB 導致收購日 TBV 增長 112%，CECL 調整後增長 106%。這項交易顯著增強了我們的資本基礎，為我們提供了一個更堅實的基礎，讓我們能夠繼續實現盈利增長，同時為我們的股東創造長期價值。

Since the acquisition, we have had meaningful engagement with key SVB leaders and clients reinforcing that FCB and SVB have commonalities that guide us, including deep commitments to our clients and people and to the communities we serve.

自收購以來，我們與 SVB 的主要領導人和客戶進行了有意義的接觸，強化了 FCB 和 SVB 的共同點，這些共同點可以指導我們，包括對我們的客戶和人民以及我們所服務的社區的堅定承諾。

The CIT merger included many unique businesses and we have successfully integrated those into our business model. So we are confident with this recent experience that we'll be able to -- it will enable us to incorporate SVB as well.

CIT 合併包括許多獨特的業務，我們已成功地將這些業務整合到我們的業務模型中。因此，我們對最近的經驗充滿信心，我們將能夠 - 它也將使我們能夠合併 SVB。

We've long believed that direct communications with our clients and associates are essential. And to that end, I'd like to briefly touch on some recent departures that have been reported. As within a combination of this kind, some level of associate turnover in deposit and client churn is expected. However, we are confident that SVB has one of the deepest and most experienced benches of any financial institutions serving the innovation economy. And we're committed to maintaining and growing SVB's market by leveraging this deep-seated talent and strength as we move forward.

長期以來，我們一直認為與客戶和同事的直接溝通至關重要。為此，我想簡要談談最近報導的一些離職情況。在這種組合中，預計會有一定程度的存款和客戶流失。然而，我們相信 SVB 擁有服務於創新經濟的所有金融機構中最深入和最有經驗的替補席之一。在我們前進的過程中，我們致力於通過利用這種根深蒂固的人才和實力來維持和發展 SVB 的市場。

Importantly, the combined organization is very well positioned financially and is operating from a position of strength. In addition to significant TBV accretion, our liquidity remains strong driven by conservative asset liability management and was enhanced by this transaction with the creation of on-balance sheet funding and access to significant contingency funding.

重要的是，合併後的組織在財務上處於非常有利的地位，並且在實力上處於領先地位。除了顯著的 TBV 增加外，我們的流動性在保守的資產負債管理的推動下仍然強勁，並且通過創建資產負債表內資金和獲得大量應急資金的交易得到增強。

Turning to legacy First Citizens performance. We delivered another quarter of deposit and loan growth as positive momentum continued across all lines of business. The strong quality loan growth we've experienced this quarter in tandem with the positive asset repricing that we experienced throughout 2022, helped generate favorable operating leverage year-over-year.

轉向傳統的第一公民表演。隨著所有業務線繼續保持積極勢頭，我們又實現了一個季度的存款和貸款增長。我們在本季度經歷的強勁優質貸款增長以及我們在整個 2022 年經歷的積極資產重新定價，幫助產生了同比有利的經營槓桿。

We, like most companies face some economic headwinds, including the increasing possibility of recession. However, we have not seen meaningful increases of stress in our credit portfolio. Overall, we remain encouraged by the resiliency of our clients in the face of elevated inflation and rising interest rates and we look forward to continuing to support them.

我們和大多數公司一樣面臨一些經濟逆風，包括經濟衰退的可能性越來越大。然而，我們沒有看到我們的信貸組合壓力顯著增加。總的來說，我們仍然對客戶在通脹上升和利率上升時的韌性感到鼓舞，我們期待繼續為他們提供支持。

Turning to Page 6. We remain focused on the long-term sustainable shareholder value-driven by our core strategic priorities, which haven't changed other than the addition of a new strategic priority related to the acquisition of SVB.

翻到第 6 頁。我們仍然專注於由我們的核心戰略優先事項驅動的長期可持續股東價值，除了增加與收購 SVB 相關的新戰略優先事項之外，這些戰略優先事項沒有改變。

Long-term benefits can be achieved by harnessing SVB's legacy businesses and leveraging these to attract and retain new clients to our franchise. SVB continues to support its clients day in and day out. In fact, several clients recently announced new deals with SVB that are supporting the growth of their businesses.

通過利用 SVB 的傳統業務並利用這些業務吸引和留住新客戶，可以獲得長期利益。 SVB 繼續日復一日地為其客戶提供支持。事實上，一些客戶最近宣布了與 SVB 的新交易，以支持他們的業務增長。

In addition, SVB's premium line division currently has all-time high loan outstandings. SVB's Community Development Finance Group closed its largest ever affordable housing facility, and this week is celebrating the grand opening as the lead construction lender of new housing in San Francisco for formally unhoused military veterans.

此外，SVB 的優質業務部門目前擁有歷史最高的未償還貸款。 SVB 的社區發展金融集團關閉了其有史以來最大的經濟適用房設施，本周作為舊金山正式無住房退伍軍人新住房的主要建築貸款機構慶祝盛大開業。

To successfully integrate SVB, we are focused on the following: the first, running SVB as SVB to maintain the competitive advantage it has in the innovation economy, while at the same time, infusing the cost discipline and risk management that is defined for Citizens for 125 years; secondly, continuing our high-touch approach, demonstrating to legacy SVB clients that we're committed to helping their businesses succeed; third, embracing our SVB colleagues to create synergies that enhance our client relationships and further drive the innovation of our products and services; and lastly, continue to articulate our vision with SVB associates to proactively retain key revenue-generating employees and the staff to support them.

為了成功整合 SVB，我們專注於以下幾點：首先，將 SVB 作為 SVB 來運營，以保持其在創新經濟中的競爭優勢，同時注入為公民定義的成本紀律和風險管理125 年；其次，繼續我們的高接觸方式，向 SVB 的傳統客戶展示我們致力於幫助他們的業務取得成功；第三，擁抱我們的 SVB 同事，創造協同效應，增強我們的客戶關係，並進一步推動我們產品和服務的創新；最後，繼續與 SVB 員工闡明我們的願景，即積極留住主要創收員工和支持他們的員工。

While we are clearly in the early days of the SVB acquisition, we already have begun to integrate our teams and we continue to actively prioritize our efforts to support SVB and its clients. As a combined team, we remain committed to our long-term strategic focus, our relationship client-focused model, delivering solid results while operating with strong liquidity and capital positions and effectively managing risk within our defined risk appetite.

雖然我們顯然處於收購 SVB 的早期階段，但我們已經開始整合我們的團隊，並且我們將繼續積極優先考慮支持 SVB 及其客戶的工作。作為一個聯合團隊，我們將繼續致力於我們的長期戰略重點，我們以關係客戶為中心的模式，在以強大的流動性和資本狀況運營的同時提供可靠的結果，並在我們定義的風險偏好範圍內有效地管理風險。

I would like to close my comments by recognizing all our associates at FCB and SVB for coming together over the past month to move us forward as a combined company. We still have work to do but your hard work provides us the real opportunity to unlock the strategic and financial value of this partnership. And I'll turn it over now to our President, Peter Bristow, to further discuss areas of focus on the SVB acquisition. Peter?

最後，我想感謝我們在 FCB 和 SVB 的所有員工在過去一個月里齊聚一堂，推動我們作為一家合併後的公司向前發展。我們仍有工作要做，但你們的辛勤工作為我們提供了真正的機會來釋放這種夥伴關係的戰略和財務價值。我現在將其轉交給我們的總裁彼得布里斯托，以進一步討論 SVB 收購的重點領域。彼得？

Thank you, Frank, and good morning, everyone. On Page 8, I want to touch on the potential growth opportunities the SVB combination unlocks for First Citizens. With the addition of approximately $100 million in total assets, SVB adds meaningful financial scale to First Citizens. While we did experience some level of deposit outflow since the acquisition date, about half of which was expected on day 1, we have begun to see some signs of stabilization.

謝謝你，弗蘭克，大家早上好。在第 8 頁，我想談談 SVB 組合為 First Citizens 帶來的潛在增長機會。隨著總資產增加約 1 億美元，SVB 為 First Citizens 增加了有意義的財務規模。雖然自收購之日起我們確實經歷了一定程度的存款外流，其中大約一半是在第一天預計的，但我們已經開始看到一些穩定的跡象。

This acquisition built on First Citizens' solid foundation by adding significant scale, geographic diversity, exceptional talent and most importantly, valuable solutions for clients throughout their financial life cycle.

此次收購建立在 First Citizens 堅實的基礎上，增加了顯著的規模、地域多樣性、傑出的人才，最重要的是，為客戶的整個金融生命週期提供了有價值的解決方案。

First, the addition of SVB meaningfully advances our presence in the innovation and technology sectors. SVB's historic leadership position in these sectors ensures First Citizens is better positioned to serve venture-backed companies and tech start-ups in our backyard and across the nation.

首先，SVB 的加入顯著提升了我們在創新和技術領域的影響力。 SVB 在這些領域的歷史領導地位確保 First Citizens 能夠更好地為我們後院和全國的風險投資支持的公司和科技初創企業提供服務。

Second, it opens new business opportunities while driving incremental top line growth. By leveraging the existing offerings of First Citizens and SVB, we can better serve our combined client base.

其次，它在推動收入增量增長的同時開闢了新的商機。通過利用 First Citizens 和 SVB 的現有產品，我們可以更好地為合併後的客戶群提供服務。

Third, SVB Private has enormous potential to accelerate the growth of our wealth business, adding new digital capabilities, talent and solutions to our already growing franchise.

第三，SVB Private 擁有巨大的潛力來加速我們財富業務的增長，為我們已經不斷增長的特許經營業務增加新的數字能力、人才和解決方案。

Fourth, SVB increases our presence in attractive high-growth markets on the West Coast and in the Northeast, positioning us to capture new clients while diversifying our footprint.

第四，SVB 增加了我們在西海岸和東北部具有吸引力的高增長市場的影響力，使我們能夠在實現足跡多元化的同時吸引新客戶。

Finally, as Frank mentioned, this acquisition is compelling financially, both immediately and in the long term.

最後，正如 Frank 所提到的，此次收購在短期和長期內都具有很強的財務吸引力。

On Page 9, we dive deeper into the entities we acquired, the SVB Commercial and Private Banks. The commercial arm of SVB is the banking leader in the innovation economy with a powerful network of relationships across entrepreneurs, investors and influencers. Their focus on technology, life sciences and health care and global fund banking combined with their best-in-class model for delivering to those clients truly sets them apart from the rest of the industry.

在第 9 頁，我們深入探討了我們收購的實體，即 SVB 商業銀行和私人銀行。 SVB 的商業部門是創新經濟中的銀行業領導者，在企業家、投資者和影響者之間擁有強大的關係網絡。他們專注於技術、生命科學和醫療保健以及全球基金銀行業務，再加上為這些客戶提供一流服務的模式，真正使他們在業內脫穎而出。

SVB provides tailored commercial banking solutions to clients at every life stage from start-up and early stage companies to venture-backed growth companies on up to large corporate entities. These solutions include business banking, treasury services, card, digital banking, FX, liquidity management and venture debt through the various stages as well as a comprehensive package of banking products to support venture capital and PE fund clients.

SVB 為各個生命階段的客戶提供量身定制的商業銀行解決方案，從初創公司和早期公司到風險投資支持的成長型公司，再到大型企業實體。這些解決方案包括各個階段的商業銀行、資金服務、銀行卡、數字銀行、外匯、流動性管理和風險債務，以及支持風險投資和私募股權基金客戶的綜合銀行產品包。

SVB Private is an established wealth advisory franchise with private banking solutions tailored to the needs of innovation clients. SVB serves these clients both professionally and personally. SVB's private wealth capabilities include lending solutions to address equity compensation, concentrated stock positions and nonliquid assets. SVB Private also works with premium line producers to provide working capital and vendor loans.

SVB Private 是一家成熟的財富諮詢特許經營機構，提供針對創新客戶需求量身定制的私人銀行解決方案。 SVB 為這些客戶提供專業和個人服務。 SVB 的私人財富能力包括解決股權補償、集中股票頭寸和非流動資產的貸款解決方案。 SVB Private 還與優質生產線生產商合作，提供營運資金和供應商貸款。

I'm not going to cover Page 10 in detail, but we have included it for your reference to provide a snapshot of all of First Citizens Bank business segments, along with on- and off-balance sheet financial data as of March 31, 2023.

我不打算詳細介紹第 10 頁，但我們將其包含在內以供您參考，以提供第一公民銀行所有業務部門的快照，以及截至 2023 年 3 月 31 日的表內和表外財務數據.

Turning to Page 11. While we are in the early stages, our integration efforts are underway. Our approach is to seek out the best minds and most experienced people who can develop our go-forward business model. We are formalizing integration plans that we will share in the future.

翻到第 11 頁。雖然我們處於早期階段，但我們的整合工作正在進行中。我們的方法是尋找最優秀的人才和最有經驗的人來開發我們的前瞻性商業模式。我們正在製定我們將在未來分享的整合計劃。

Meanwhile, we are diligently working to address our immediate priorities and goals, which include: first, maintaining our position as a key partner in the innovation economy. We are committed to continuing to help innovators, enterprises and investors move bold ideas forward. Despite the recent turmoil, we believe there are long-term secular tailwinds supporting the technology and health care sectors that will continue to drive future growth; second, supporting clients and working to regain trust. Our goal is to maintain seamless functionality that SVB clients are accustomed to and have come to expect. We have already met with many key clients to hold initial discussions around the transition and reinforce our commitment to them. We plan to continue that communication and ensure that feedback can be received quickly and effectively addressed; third, retaining key revenue-generating talent and staff to support them. One of the most important priorities has been the retention of key SVB talent. We have provided a budget for a meaningful amount of retention to retain this key talent.

與此同時，我們正在努力解決我們的當務之急和目標，其中包括：首先，保持我們在創新經濟中的重要合作夥伴地位。我們致力於繼續幫助創新者、企業和投資者推進大膽的想法。儘管最近出現動盪，但我們認為長期的長期順風支持技術和醫療保健行業將繼續推動未來增長；第二，支持客戶並努力重新獲得信任。我們的目標是保持 SVB 客戶習慣並期待的無縫功能。我們已經與許多主要客戶會面，圍繞過渡進行初步討論，並加強我們對他們的承諾。我們計劃繼續進行這種溝通，並確保能夠快速有效地收到反饋；第三，留住關鍵的創收人才和員工來支持他們。最重要的優先事項之一是留住關鍵的 SVB 人才。我們已經為保留這一關鍵人才提供了有意義的保留預算。

As Frank mentioned, we have had some attrition since this acquisition date. However, we have been pleased that our succession plans, internal talent pools and external recruiting resources have allowed us to backfill key positions.

正如 Frank 提到的，自此次收購之日起，我們已經出現了一些人員流失。然而，我們很高興我們的繼任計劃、內部人才庫和外部招聘資源使我們能夠填補關鍵職位。

On Page 12, we show the composition of our loan portfolio at quarter end, including the impact of the SVB acquisition. The transaction provides diversification across our loan portfolio. In this way, legacy SVB's commercially-focused portfolio complements First Citizens' client strategy by bringing on strong private equity and venture capital relationships.

在第 12 頁，我們展示了季度末貸款組合的構成，包括 SVB 收購的影響。該交易使我們的貸款組合多樣化。通過這種方式，傳統的 SVB 以商業為重點的投資組合通過引入強大的私募股權和風險投資關係來補充 First Citizens 的客戶戰略。

Moving to Page 13, we provide an overview of the legacy SVB credit portfolios, and they are divided into risk categories. The acquired portfolio has a low loss history, which aligns well with First Citizens' credit culture and risk management strategy. As you can see, approximately 70% of SVB loans fall into low credit risk portfolios, including Global Fund Banking and the Private Bank. We will continue to manage these portfolios prudently and effectively while maintaining consistent and strong underwriting standards. The efforts are already executed by the legacy SVB team in this area have positioned the bank well from a credit quality standpoint.

轉到第 13 頁，我們提供了對傳統 SVB 信貸組合的概述，並將它們分為風險類別。收購的投資組合具有低損失歷史，這與 First Citizens 的信用文化和風險管理策略非常吻合。如您所見，大約 70% 的 SVB 貸款屬於低信用風險組合，包括全球基金銀行和私人銀行。我們將繼續審慎有效地管理這些投資組合，同時保持一致和強有力的承保標準。從信貸質量的角度來看，SVB 的傳統團隊已經在這一領域做出了努力，使銀行處於有利地位。

On Page 14, we show our deposit composition at quarter end, including the impact of the SVB acquisition. One of the most immediate benefits is the shift in deposit mix at 62% of SVB's deposits are noninterest-bearing, bringing the consolidated noninterest-bearing ratio to 39%, up 11% from which we reported in the fourth quarter. Further, the transaction provides a more geographically diverse deposit base, which we believe will help position us to compete in the current deposit rate environment by growing our core deposit base.

在第 14 頁，我們顯示了季度末的存款構成，包括 SVB 收購的影響。最直接的好處之一是存款組合發生變化，SVB 62% 的存款是無息存款，使綜合無息比率達到 39%，比我們在第四季度報告的高出 11%。此外，該交易提供了更加地域多樣化的存款基礎，我們相信這將有助於我們通過擴大核心存款基礎來在當前的存款利率環境中競爭。

We continue to focus on client outreach, and I believe that some of the legacy SVB clients will move business that left back to us as depositors realizes their deposits are safe with First Citizens. In the meantime, we've successfully been leveraging our nationwide digital direct bank to quickly add balances through competitive product offerings. I will now turn it over to Craig Nix to discuss the preliminary purchase accounting and our first quarter financial results. Craig?

我們繼續專注於客戶外展，我相信一些傳統的 SVB 客戶會把剩下的業務轉移給我們，因為儲戶意識到他們的存款在 First Citizens 是安全的。與此同時，我們已經成功地利用我們在全國范圍內的數字直銷銀行，通過提供有競爭力的產品來快速增加餘額。我現在將其轉交給克雷格尼克斯來討論初步採購會計和我們第一季度的財務業績。克雷格？

Thank you, Peter, and good morning, everyone. Page 17 provides a view of the acquired balance sheet prior and post purchase accounting impacts. After preliminary purchase accounting, we acquired approximately $107 billion in assets, comprised of $35 billion in cash and $71 billion in loans. We assumed $56 billion in deposits and $35 billion in borrowings. The FDIC received a value appreciation instrument payable in cash of up to $500 million from March 28. With FDIC exercised its option and in April, we paid the FDIC $500 million.

謝謝你，彼得，大家早上好。第 17 頁提供了收購資產負債表前後會計影響的視圖。經過初步收購核算後，我們收購了大約 1070 億美元的資產，其中包括 350 億美元的現金和 710 億美元的貸款。我們假設有 560 億美元的存款和 350 億美元的借款。 FDIC 從 3 月 28 日開始收到價值高達 5 億美元的現金支付增值工具。隨著 FDIC 行使選擇權，我們在 4 月向 FDIC 支付了 5 億美元。

Page 18 shows that the acquisition resulted in significant TBV accretion starting with the stand-alone First Citizens' tangible book value of $590 per share. Estimated day 1 accretion was 112% or an increase of $9.6 billion to $1,250 per share. After the impacts of CDI and day 2 CECL, estimated accretion was 106% or an increase of $9.1 billion to $1,214 per share, assuming fully phased-in acquisition costs estimated at $650 million, TBV accretion was 100%.

第 18 頁顯示，從獨立的 First Citizens 每股 590 美元的有形賬面價值開始，此次收購導致 TBV 顯著增加。估計第 1 天的增長為 112%，或增加 96 億美元至每股 1,250 美元。在 CDI 和第 2 天 CECL 的影響之後，估計增長為 106% 或增加 91 億美元至每股 1,214 美元，假設完全分階段收購成本估計為 6.5 億美元，TBV 增長為 100%。

Continuing to Page 19, pretax purchase accounting adjustments were $2.8 billion. The most significant adjustment included a 3.9% credit and liquidity mark on loans. After consideration of other adjustments, including $253 million for commitments to lend and $230 million for CDI, the asset discount of $16.45 billion was reduced to $13.6 billion. After recognizing the $500 million paid to the FDIC, we recognized an after-tax gain of $9.8 billion on the acquisition.

繼續第 19 頁，稅前採購會計調整為 28 億美元。最重要的調整包括貸款的 3.9% 信用和流動性標記。在考慮其他調整後，包括 2.53 億美元的貸款承諾和 2.3 億美元的 CDI，164.5 億美元的資產折扣減少到 136 億美元。在確認支付給 FDIC 的 5 億美元後，我們確認了此次收購的 98 億美元稅後收益。

Our current estimate for the PCD ACL gross-up is $200 million, and our day 2 CECL non-PCD provision is $462 million. In addition to day 2 provision, we recorded $254 million in provision expense for commitments to lend, bringing the after tax of day 2 provision expense to $536 million.

我們目前對 PCD ACL 總額的估計為 2 億美元，我們第 2 天的 CECL 非 PCD 撥備為 4.62 億美元。除了第 2 天準備金外，我們還記錄了 2.54 億美元的貸款承諾準備金費用，使第 2 天準備金費用的稅後金額達到 5.36 億美元。

On Page 20, we present the estimated impact of preliminary purchase accounting marks on EPS, NIM and income statement line items. Please note that the fair value adjustments presented exclude fair value adjustments that will not impact future earnings. The impact of the fair market value adjustments is estimated to be accretive to 2023 EPS by $28.95 and to 2023 NIM by 36 basis points.

在第 20 頁，我們介紹了初步採購會計標記對 EPS、NIM 和損益表項目的估計影響。請注意，所列公允價值調整不包括不會影響未來收益的公允價值調整。據估計，公平市值調整的影響將使 2023 年每股盈利增加 28.95 美元，使 2023 年淨息差增加 36 個基點。

The day 2 CECL adjustments for non-PCD loans and reserve for unfunded commitments will have a negative impact on estimated 2023 EPS of $26.97.

非 PCD 貸款的第 2 天 CECL 調整和未提供資金承諾的準備金將對 2023 年預計每股收益 26.97 美元產生負面影響。

Page 21 shows that of the $71.3 billion in loans acquired, approximately $2.5 billion were determined to be PCD loans. After recording the ACL on PCD loans totaling $200 million, we estimate $2.6 billion of interest income accretion to be recognized over the remaining lives of the loans. The ACL ratio on the acquired SVB loans is 1%, resulting in a combined ACL of $1.6 billion or 1.16% of total loans at March 31, 2023.

第 21 頁顯示，在獲得的 713 億美元貸款中，約有 25 億美元被確定為 PCD 貸款。在記錄總計 2 億美元的 PCD 貸款的 ACL 後，我們估計在貸款的剩餘期限內將確認 26 億美元的利息收入增長。所收購 SVB 貸款的 ACL 比率為 1%，導致 ACL 合計為 16 億美元，佔 2023 年 3 月 31 日貸款總額的 1.16%。

Next, on Page 22, it was especially important to us that post acquisition, we maintained a fortress balance sheet, marked by strong liquidity, both on and off balance sheet, managed with a low risk appetite with respect to our investment portfolio, maintain strong credit quality and provide appropriate ACL coverage.

接下來，在第 22 頁，對我們來說尤為重要的是，在收購後，我們保持了一個堡壘資產負債表，以資產負債表內外的強勁流動性為標誌，以低風險偏好管理我們的投資組合，保持強勁信用質量並提供適當的 ACL 覆蓋範圍。

All capital ratios are above our current target operating ranges with CET1 at 12.53%, when adjusting the CET1 ratio for AOCI unrealized losses on our securities portfolio, it drops to 12.1% and when further adding unrealized losses on the HTM portfolio, it drops to 11.4%. Both of these pro forma ratios remain above regulatory well-capitalized limits and our internal target ranges.

所有資本比率均高於我們當前的目標運營範圍，CET1 為 12.53%，當調整我們證券投資組合中 AOCI 未實現虧損的 CET1 比率時，它下降到 12.1%，當進一步增加 HTM 投資組合的未實現損失時，它下降到 11.4 %。這兩個備考比率均高於監管資本充足的限制和我們的內部目標範圍。

We have strong on and off-balance sheet liquidity positions totaling $51.4 billion in cash and high-quality liquid securities and $79.5 billion in contingent sources. Total liquidity covered uninsured deposits by 198% as of March 31 and by 219% as of April 30. Although net charge-offs increased in the first quarter, credit performance was strong, and we remain well reserved.

我們擁有強大的表內和表外流動性頭寸，總計 514 億美元的現金和優質流動證券以及 795 億美元的或有來源。截至 3 月 31 日，總流動性覆蓋未投保存款的比例為 198%，截至 4 月 30 日為 219%。儘管第一季度淨註銷有所增加，但信貸表現強勁，我們仍保留充足的儲備。

Now turning to first quarter results. I'm going to anchor my comments to the takeaways on Page 24. In the interest of time, I will not cover Pages 25 through 41 in detail but have included them for your reference.

現在轉向第一季度業績。我將把我的評論錨定在第 24 頁的要點上。為了節省時間，我不會詳細介紹第 25 頁到第 41 頁，但將它們包括在內以供您參考。

We posted another quarter of strong reported and adjusted financial results. Reported net income for the quarter was obviously boosted by the gain on acquisition, but we were pleased with adjusted net income as well. Adjusted year-over-year PPNR increased by 35% and by 21% without the first quarter impact of SVB. Linked quarter net interest income grew and margin expanded by 5 basis points to 3.41%. Noninterest income held up well, increasing over the linked quarter with and without SVB's contribution. Our efficiency ratio improved on a year-over-year basis, but was up slightly from the linked quarter due to higher seasonal personnel costs and the industry-wide increase in FDIC assessment rates.

我們發布了另一個季度強勁的報告和調整後的財務業績。本季度報告的淨收入明顯受到收購收益的推動，但我們也對調整後的淨收入感到滿意。在沒有 SVB 第一季度影響的情況下，調整後的 PPNR 同比增長 35% 和 21%。相關季度淨利息收入增長，利潤率擴大 5 個基點至 3.41%。非利息收入保持良好，在有和沒有 SVB 的貢獻的情況下，在相關季度都有所增長。我們的效率比同比有所提高，但由於季節性人員成本上升和 FDIC 評估率在全行業範圍內上升，因此比相關季度略有上升。

Overall, we feel good about where we are on expenses. Legacy FCB loan and deposit growth was strong during the quarter, annualized loan and deposit growth was 7.7% and 6.3%, respectively.

總的來說，我們對我們的支出情況感到滿意。本季度傳統 FCB 貸款和存款增長強勁，年化貸款和存款增長分別為 7.7% 和 6.3%。

Moving to credit, even though we are seeing an uptick in net charge-offs towards more historic levels, we are pleased with our credit quality and strength of our clients. Outside of the general office and small ticket leasing -- equipment leasing, we have not seen new areas of stress in the portfolio. Our nonaccrual ratio declined by 26 basis points with the SVB acquisition and 5 basis points without it.

轉向信貸，儘管我們看到淨註銷上升到更高的歷史水平，但我們對我們客戶的信貸質量和實力感到滿意。除了一般辦公室和小額租賃——設備租賃，我們在投資組合中沒有看到新的壓力領域。收購 SVB 後，我們的非應計比率下降了 26 個基點，沒有收購則下降了 5 個基點。

As I mentioned earlier, our capital position remains strong. We are experiencing a burn down of AOCI losses as our securities portfolio matures and rates have come off recent highs.

正如我之前提到的，我們的資本狀況依然強勁。隨著我們的證券投資組合成熟且利率已脫離近期高位，我們正在經歷 AOCI 損失的減少。

Starting on Page 43, I will highlight our financial areas of focus. First, we are focused on maintaining a solid base of core deposits to fund our balance sheet. General bank deposits totaled $86 billion. Over 60% of our total deposit base consisting primarily of our branch network and our nationwide direct bank. 80% of these deposits are insured or collateralized and the average account size is $36,000. The deposits noted below the General Bank and our Commercial Bank from legacy CIT and represent a much smaller portion of our total funding, corporate segment deposits consist primarily of broker deposits.

從第 43 頁開始，我將重點介紹我們關注的財務領域。首先，我們專注於維持堅實的核心存款基礎，為我們的資產負債表提供資金。一般銀行存款總額為 860 億美元。我們總存款基礎的 60% 以上主要由我們的分行網絡和全國直銷銀行組成。這些存款中有 80% 有保險或抵押，平均賬戶規模為 36,000 美元。下面提到的一般銀行和我們的商業銀行來自遺留 CIT 的存款占我們總資金的一小部分，公司部門存款主要包括經紀人存款。

SVB deposits of $49.3 billion represented 35% of our deposit base and have an average size of $360,000. 14% of these deposits are insured. Putting it all together, 53% of our deposits were insured at March 31, 2023.

493 億美元的 SVB 存款占我們存款基礎的 35%，平均規模為 360,000 美元。這些存款中有 14% 已投保。總而言之，截至 2023 年 3 月 31 日，我們 53% 的存款已投保。

Continuing to Page 44, we show weekly deposit trends post acquisition. On the FCB side, deposits have grown by $2.6 billion, primarily in the Direct Bank. On the SVB side, after seeing initial outflows of $7 billion, and a $5 billion outflow that was expected at the acquisition date related to a sweep repo product coming back online, deposit balances have begun to stabilize. We are monitoring deposit outflows at SVB closely, and we'll continue to use our Direct Bank to offset future outflows of deposits at SVB.

繼續第 44 頁，我們展示了收購後的每周存款趨勢。在 FCB 方面，存款增加了 26 億美元，主要是在直接銀行。在 SVB 方面，在看到最初的 70 億美元流出，以及在收購日期預計與回購回購產品重新上線相關的 50 億美元流出之後，存款餘額開始趨於穩定。我們正在密切監測 SVB 的存款外流，我們將繼續使用我們的直接銀行來抵消 SVB 未來的存款外流。

Page 45, shows that as of March 31 and April 30, liquidity covered our uninsured deposits by approximately 2x.

第 45 頁顯示，截至 3 月 31 日和 4 月 30 日，流動性覆蓋了我們未投保的存款約 2 倍。

On Pages 46 and 47, we highlight our total CRE exposure which was under 12% of total loans at quarter end. General office loans totaled $2.8 billion or 2.1% of total loans.

在第 46 和 47 頁，我們強調了我們的 CRE 總敞口在季度末佔貸款總額的 12% 以下。一般辦公室貸款總額為 28 億美元，佔貸款總額的 2.1%。

Page 47 includes information on the general office portfolio, which is well diversified geographically with limited exposure to some of the hardest hit markets including San Francisco, Chicago and New York. As we shared on our last call, of the $2.8 billion in general office loans, our largest area of concern is in our commercial bank with general office loans totaling $1.3 billion or less than 1% of total loans. This portfolio consists of Class B repositioning bridge loans and is where we have seen deterioration in past dues, criticized assets and charge-offs. We are carrying an ACL on these loans of 5.23% versus an ACL on the overall general office portfolio of 2.67%.

第 47 頁包含有關一般辦公樓組合的信息，該組合在地理上非常多元化，對一些受災最嚴重的市場（包括舊金山、芝加哥和紐約）的敞口有限。正如我們在上次電話會議上分享的那樣，在 28 億美元的一般辦公室貸款中，我們最擔心的領域是我們的商業銀行，其一般辦公室貸款總額為 13 億美元或不到貸款總額的 1%。該投資組合包括 B 類重新定位過橋貸款，我們已經看到過去的欠款、受批評的資產和沖銷的情況惡化。我們對這些貸款的 ACL 為 5.23%，而對整體一般辦公室組合的 ACL 為 2.67%。

The general office loans in the Commercial Bank were originated with strong loan to values in the 60% to 65% range. We acknowledge that current market conditions could bring these higher depending on the location and specific property. As these loans approach maturity, we are working with our clients on an individual basis to assess potential concerns and ensure we are addressing them quickly. So while we expect some additional downward migration in this portfolio, we do believe the issues are manageable.

商業銀行的一般辦公室貸款起源於價值在 60% 至 65% 範圍內的強勁貸款。我們承認，當前的市場狀況可能會提高這些價格，具體取決於地點和具體財產。隨著這些貸款接近到期日，我們正在與我們的客戶單獨合作，以評估潛在的問題並確保我們能夠迅速解決這些問題。因此，雖然我們預計該投資組合會出現一些額外的向下遷移，但我們確實相信這些問題是可控的。

Most of the remaining general office exposure is in the general bank. This portfolio is much more granular in nature with a smaller average loan size, and we have to date not seen deterioration.

大部分剩餘的一般辦公室敞口都在一般銀行。該投資組合本質上更加精細，平均貸款規模較小，迄今為止我們還沒有看到惡化。

To close the loop on this, we are not originating new loans in this space and are diversifying to other performing property types.

為了結束這個循環，我們不會在這個領域發起新的貸款，而是多元化到其他表現良好的房地產類型。

On Pages 48 and 49, our investment portfolio strategy is to purchase stable cash flowing securities that act as a source of liquidity and do not take on significant duration risk. This is evidenced by the short duration of our portfolio of approximately 4.2 years and importantly, extending to only 4.3 years in an up 100 basis point rate shot. 95% of the portfolio is directly or indirectly guaranteed by the U.S. government.

在第 48 和 49 頁，我們的投資組合策略是購買穩定的現金流證券，作為流動性來源，不承擔重大的持續時間風險。我們的投資組合的持續時間很短，約為 4.2 年，重要的是，在利率上升 100 個基點時僅延長至 4.3 年就證明了這一點。 95% 的投資組合由美國政府直接或間接擔保。

Turning to Page 50. We expect to receive 22% of our investment portfolio cash flows over the next 7 quarters. Over that same time horizon, we expect a 39% burn down of our investment portfolio related AOCI losses.

翻到第 50 頁。我們預計在接下來的 7 個季度中將收到我們投資組合現金流量的 22%。在同一時間範圍內，我們預計與 AOCI 相關的投資組合損失將減少 39%。

On Page 51, our interest rate sensitivity increased during the quarter due to the SVB acquisition. The primary drivers were the fixed rate purchase money notes, increasing liability duration while variable rate loans and cash acquired shortened asset duration. We are prioritizing the management of liquidity risk and are keeping a larger cash balance as a percentage of assets due to the current uncertainty in the banking environment. The main drivers of our asset sensitivity are our variable rate loan portfolio, which represents approximately 65% of total loans and our cash position of $38 million, equating to 20% of earning assets as of March 31, 2023.

在第 51 頁，由於 SVB 的收購，我們的利率敏感性在本季度有所增加。主要驅動因素是固定利率購買票據，增加了負債期限，而可變利率貸款和現金收購縮短了資產期限。由於當前銀行環境的不確定性，我們將流動性風險管理放在首位，並保持較高的現金餘額佔資產的百分比。我們資產敏感性的主要驅動因素是我們的可變利率貸款組合，約佔貸款總額的 65%，以及我們 3800 萬美元的現金頭寸，相當於截至 2023 年 3 月 31 日盈利資產的 20%。

On Page 52, we provide information on our actual and expected deposit beta. 58% of our deposits exhibit lower betas and 42% exhibit moderate to higher betas. Our cumulative beta through the first quarter was 22%, in line with our projection last quarter. We expect cumulative beta to increase to 28% by the end of the second quarter as deposits continue to catch up from recent rate increases. Over the interest rate hiking cycle, we forecast our cumulative beta will be in the 30% to 35% range.

在第 52 頁，我們提供了有關實際和預期存款貝塔的信息。我們 58% 的存款表現出較低的貝塔係數，42% 的存款表現出中等至較高的貝塔係數。我們在第一季度的累計貝塔係數為 22%，與我們上個季度的預測一致。我們預計到第二季度末累計貝塔值將增加至 28%，因為存款繼續趕上最近的利率上漲。在加息週期內，我們預測我們的累計貝塔係數將在 30% 至 35% 的範圍內。

Turning to Page 54. I'll conclude with our outlook for the remainder of 2023. While we believe that our projections are achievable and reasonable, as we prepared our outlook, we noted several sources of uncertainty surrounding it.

翻到第 54 頁。我將總結我們對 2023 年剩餘時間的展望。雖然我們相信我們的預測是可以實現的並且是合理的，但在我們準備展望時，我們注意到了圍繞它的幾個不確定性來源。

Number one, we are a little over a month into the acquisition of SVB. So we still have a lot to digest there. Number two, we assume any recessionary impact will be mild. Number three, the impact of policy changes, including the path of the Fed funds rate and the pace of quantitative easing could impact our projections. And four, the impact of competition and client behavior could drive our deposit betas higher.

第一，我們對 SVB 的收購還有一個多月的時間。所以我們還有很多東西要消化。第二，我們假設任何衰退影響都是溫和的。第三，政策變化的影響，包括聯邦基金利率的路徑和量化寬鬆的步伐可能會影響我們的預測。第四，競爭和客戶行為的影響可能會推高我們的存款貝塔係數。

The first column on the page lists our first quarter 2023 results. The numbers for noninterest income and expense are adjusted for notable items. Column 2 provides our guidance for the second quarter of 2023 and Column 3 for the full year.

頁面的第一列列出了我們 2023 年第一季度的結果。非利息收入和支出的數字針對重要項目進行了調整。第 2 欄提供了我們對 2023 年第二季度的指導，第 3 欄提供了全年的指導。

On loans, we expect a low single-digit percentage decline in the second quarter as paydowns and the global fund banking business from slow market activity are offset by annualized low to mid-single-digit percentage growth in legacy FCB. We expect the same trend to continue through year-end with the legacy SVB portfolio moderating to approximately $60 billion and legacy FCB achieving mid-single-digit percentage growth.

在貸款方面，我們預計第二季度將出現較低的個位數百分比下降，因為市場活動緩慢導致的減息和全球基金銀行業務被傳統 FCB 的年化低至中個位數百分比增長所抵消。我們預計同樣的趨勢將持續到年底，傳統 SVB 投資組合將放緩至約 600 億美元，而傳統 FCB 將實現中個位數百分比增長。

For deposits, we expect a low to mid-single-digit percentage decline in the second quarter while we are encouraged by the stabilization of SVB deposits since the first week of April, we were projecting an $8 billion decline through the end of the year. With lower absolute levels of funding in the marketplace, we anticipate that SVB clients will continue to experience some level of cash burn.

對於存款，我們預計第二季度將出現低至中個位數的百分比下降，同時我們對自 4 月第一周以來 SVB 存款趨於穩定感到鼓舞，我們預計到今年年底將下降 80 億美元。由於市場資金絕對水平較低，我們預計 SVB 客戶將繼續經歷一定程度的現金消耗。

We are expecting this to be offset by $10 billion in growth in our direct bank. With respect to SVB deposits and loans, we have engaged in an expansive calling effort to reach out to over 30,000 clients. While it is early, we have seen initial positive results in the first clients we have contacted. We are cautiously optimistic that we will not see the level of loan or deposit runoff included in our projections. And this will depend on the extent to which clients return or the absolute funding in the marketplace returns. If this happens, we feel there could be upside to our projection.

我們預計這將被我們直接銀行的 100 億美元增長所抵消。關於 SVB 存款和貸款，我們進行了廣泛的呼叫工作，以接觸到超過 30,000 名客戶。雖然現在還早，但我們已經在我們聯繫的第一批客戶中看到了初步的積極成果。我們謹慎樂觀地認為，我們的預測中不會出現貸款或存款流失的水平。這將取決於客戶回報的程度或市場回報的絕對資金。如果發生這種情況，我們認為我們的預測可能會有上行空間。

Our interest rate forecast follows the implied forward curve. We forecast that the Fed funds rate has peaked at the 5% to 5.25% range. From there, we anticipate 325 basis points rate cuts in the back half of the year. The SVB acquisition will be accretive not only to net interest income given the sizable balance sheet but also to net interest margin. We expect an estimated purchase accounting impact to net interest income of $604 million and an accretive impact to NIM of 36 basis points in 2023.

我們的利率預測遵循隱含的遠期曲線。我們預測聯邦基金利率已在 5% 至 5.25% 的範圍內見頂。從那時起，我們預計今年下半年將降息 325 個基點。考慮到龐大的資產負債表，收購 SVB 不僅會增加淨利息收入，還會增加淨息差。我們預計 2023 年採購會計對淨利息收入的估計影響為 6.04 億美元，對 NIM 的增加影響為 36 個基點。

While we are not providing 2024 guidance at this time, we do expect the pace of accretion to moderate in 2024 as detailed previously in the purchase accounting slides. If rate cuts materialize on the back half of the year, we do anticipate net interest income declining from current levels. We anticipate full cycle beta to be 31%, up from our previous estimate of 25% due primarily to declines in noninterest-bearing deposits as well as volume increases in the more expensive direct bank channel.

雖然我們目前不提供 2024 年的指導，但我們確實預計增長速度將在 2024 年放緩，如先前採購會計幻燈片中詳述的那樣。如果降息在今年下半年實現，我們預計淨利息收入將從當前水平下降。我們預計全週期貝塔率為 31%，高於我們之前估計的 25%，這主要是由於無息存款下降以及更昂貴的直接銀行渠道的交易量增加。

We expect second quarter annualized net charge-offs to be in the 35 to 45 basis points range. The uptick is primarily related to a $45 million charge-off in the SVB portfolio that was fully reserved for in day 1 purchase accounting. We view that charge-off as idiosyncratic in nature. Absent that charge-off, we would expect net charge-offs to be in the mid-20s annualized. For the full year 2023, we expect net charge-offs in the 25 to 35 basis points range.

我們預計第二季度年化淨註銷將在 35 至 45 個基點範圍內。上漲主要與 SVB 投資組合中的 4500 萬美元沖銷有關，該沖銷完全保留用於第 1 天的採購會計。我們認為這種沖銷本質上是特殊的。如果沒有這種沖銷，我們預計年化淨沖銷將在 20 多歲左右。對於 2023 年全年，我們預計淨沖銷將在 25 至 35 個基點範圍內。

On an adjusted basis, we expect $430 million to $460 million in noninterest income in the second quarter. We expect legacy SVB to generate close to $130 million to $150 million per quarter. On an apples-to-apples basis of the SVB businesses that were acquired, this was closer to $300 million per quarter in 2022. So we are expecting the run rate to be slightly less than half of that given client attrition, especially in some of the off-balance sheet suite products.

在調整後的基礎上，我們預計第二季度的非利息收入為 4.3 億至 4.6 億美元。我們預計傳統 SVB 每季度將產生近 1.3 億至 1.5 億美元的收入。在被收購的 SVB 業務的同類基礎上，到 2022 年每季度接近 3 億美元。因此，我們預計運行率將略低於給定客戶流失率的一半，尤其是在一些表外套件產品。

With respect to legacy First Citizens, we still have momentum in our wealth merchant card and rail businesses. While maintenance expenses are expected to increase in rail, utilization is almost 98% and in the past 2 quarters, renewal rates have been at or above 130% of the previous quarter's rate.

關於遺留的 First Citizens，我們的財富商卡和鐵路業務仍有發展勢頭。雖然鐵路的維護費用預計會增加，但利用率接近 98%，並且在過去兩個季度中，更新率一直達到或高於上一季度的 130%。

Noninterest expense projections do not include expected acquisition expenses related to SVB, estimated at $650 million with 50% recognized over the remainder of 2023 and the other half in 2024. We expect noninterest expense in the range of $1.25 billion to $1.3 billion in the second quarter. The SVB pre-merger annual run rate was approximately $2.6 billion or $650 million per quarter. We anticipate 25% to 30% cost synergies to be in the run rate by the end of 2024, equating to $650 million to $780 million.

非利息費用預測不包括與 SVB 相關的預期收購費用，估計為 6.5 億美元，其中 50% 在 2023 年剩餘時間確認，另一半在 2024 年確認。我們預計第二季度的非利息費用在 12.5 億美元至 13 億美元之間. SVB 合併前的年度運行率約為 26 億美元或每季度 6.5 億美元。我們預計到 2024 年底，成本協同效應將達到 25% 至 30%，相當於 6.5 億至 7.8 億美元。

Most of the synergies will be driven by consolidation of redundant or reduplicate back-office processes and systems as we do remain focused on supporting the existing front line of business and their clients.

大多數協同效應將由冗餘或重複的後台流程和系統的整合推動，因為我們仍然專注於支持現有的業務一線及其客戶。

On an FCB stand-alone basis, we expect expenses to be down low single digits percentage points compared to the first quarter due to elevated seasonal benefits, partially offset by merit increases as well as heightened marketing expenses related to the digital bank.

在 FCB 獨立的基礎上，由於季節性福利增加，我們預計費用將比第一季度下降低個位數百分點，部分被業績增長以及與數字銀行相關的營銷費用增加所抵消。

We expect to maintain an efficiency ratio in the mid-50s with upside to the low 50s if rates remain higher for longer. If rates begin to decline as forecasted, we feel comfortable in our ability to maintain it in the mid-50s as decreases in net interest income are offset by recognition of cost synergies.

如果利率在更長時間內保持較高水平，我們預計效率比將保持在 50 年代中期，並有可能上升至 50 年代的低位。如果利率開始像預測的那樣下降，我們對將其維持在 50 年代中期的能力感到放心，因為淨利息收入的減少被成本協同效應的認可所抵消。

And finally, we expect our corporate tax rate to be in the 26.5% to 27% range, an increase from the previous range of 24.5% to 25%, as our revenue distribution is more heavily weighted to higher tax jurisdictions, such as California and our pre-existing tax benefits are spread amongst a larger pretax income base.

最後，我們預計我們的公司稅率將在 26.5% 至 27% 的範圍內，高於之前的 24.5% 至 25%，因為我們的收入分配更多地集中在更高稅收的司法管轄區，例如加利福尼亞和我們先前存在的稅收優惠分佈在更大的稅前收入基礎中。

Page 55 shows our EPS forecast for 2023 and significant EPS accretion from the SVB acquisition. The forecast does not include the impact of acquisition expenses. It assumes that 50% to 60% of the cost synergies are in the run rate by the end of 2023.

第 55 頁顯示了我們對 2023 年的每股收益預測以及收購 SVB 後每股收益的顯著增長。該預測不包括收購費用的影響。它假設到 2023 年底，50% 到 60% 的成本協同效應在運行率中。

Starting from the left side of the page, we begin with FCB's estimated stand-alone 2023 EPS range of $85 to $90 per share. Moving to the gray bar on the right, the impact of the base combination with SVB prior to cost synergies as $27 to $31 per share, bringing the range through the base combination EPS to $112 to $121 per share. Continuing to the right, cost synergies in 2023 are estimated to add another $9 to $11 to EPS. Note that if we were to assume estimated fully phased-in cost synergies in this projection, they would be accretive to EPS by $33 to $39 per share.

從頁面左側開始，我們從 FCB 估計的 2023 年獨立每股收益範圍 85 美元至 90 美元開始。移動到右側的灰色條，成本協同效應之前與 SVB 的基本組合的影響為每股 27 美元至 31 美元，使基本組合每股收益的範圍達到 112 美元至 121 美元。繼續向右看，預計 2023 年的成本協同效應將使每股收益再增加 9 至 11 美元。請注意，如果我們在此預測中假設估計的完全分階段成本協同效應，它們將使每股收益增加 33 至 39 美元。

The next 2 gray boxes to the right shows that purchase accounting impacts are accretive to EPS by $31 per share and that amortization of CDI reduces that impact by $2 per share. Actual results could differ materially, particularly with respect to accretion depending on loan pre-payments, to be $31 per share assumes loans pay off based on contractual maturities. Thus, we ended an estimated range for EPS between $150 and $161 per share, representing 67% to 89% accretion. With fully phased-in cost synergies, accretion would be between 93% and 122%. Note that the EPS walk includes estimated SVB operating results from the acquisition date through December 31, 2023.

右側接下來的 2 個灰色框顯示採購會計影響對 EPS 的影響增加了每股 31 美元，而 CDI 的攤銷減少了每股 2 美元的影響。實際結果可能存在重大差異，特別是在取決於貸款預付款項的增長方面，每股 31 美元假設貸款根據合同到期還清。因此，我們結束了每股收益 150 美元至 161 美元的估計範圍，代表 67% 至 89% 的增長。完全分階段實施成本協同效應後，增幅將在 93% 至 122% 之間。請注意，EPS 步行包括 SVB 從收購之日到 2023 年 12 月 31 日的估計運營結果。

And with that, I will turn it back over to Frank for closing comments.

然後，我將把它轉回給 Frank 以徵求結束意見。

Wow, I know we've thrown a lot at you today. But I'd like to sort of end with some takeaways, call it sort of headlines of all the materials that we've thrown at you this morning. First of all, the SVB acquisition was a home run financially in terms of immediate TBV accretion and future EPS accretion. Secondly, our fortress balance sheet enabled us to do the SVB deal, and we intend to maintain it post acquisition. Also, SVB clients should take great comfort in our safety and stability, and we're hopeful that the recent reduction in runoff and deposit runoff is a sign of their confidence in us.

哇，我知道我們今天對你說了很多。但我想以一些要點作為結束，將其稱為我們今天早上向您提供的所有材料的標題。首先，就直接 TBV 增長和未來 EPS 增長而言，SVB 的收購在財務上是一個本壘打。其次，我們的堡壘資產負債表使我們能夠進行 SVB 交易，我們打算在收購後維持它。此外，SVB 客戶應該對我們的安全性和穩定性感到非常欣慰，我們希望最近徑流和存款徑流的減少表明他們對我們有信心。

Next, we're committed to SVB's strategic approach to the technology and innovation sector and believe that it represents the opportunity for significant upside for First Citizens' shareholders. And finally, moving forward, we are positioned to perform well in a broad range of economic scenarios given our capital and liquidity positions, talented associates, focus on our clients, and increasingly diverse business mix and our strong risk management culture. And with that, I'll turn it over to the operator for instructions for the question-and-answer portion of the call.

接下來，我們致力於 SVB 對技術和創新領域的戰略方針，並相信它代表了 First Citizens 股東顯著上漲的機會。最後，展望未來，鑑於我們的資本和流動性狀況、才華橫溢的員工、對客戶的關注、日益多樣化的業務組合以及我們強大的風險管理文化，我們有能力在廣泛的經濟情景中表現出色。然後，我會將其轉交給接線員，以獲取有關通話問答部分的說明。

(Operator Instructions) The first question comes from the line of Stephen Scouten with Piper Sandler.

（操作員說明）第一個問題來自 Stephen Scouten 和 Piper Sandler 的台詞。

Appreciate all the color. Frank, like you said, it's a lot, but it's all really positive, so we appreciate all the detail there. I guess one thing maybe I'd be curious about is around the migration of that $8 billion in deposit outflows you said you expect through year-end into the $10 billion in the direct bank, kind of how we can think about that from a mix perspective and a cost perspective and how you think about that longer term?

欣賞所有的顏色。弗蘭克，就像你說的，很多，但都是非常積極的，所以我們感謝那裡的所有細節。我想我可能會好奇的一件事是你說你預計到年底的 80 億美元存款流出轉移到直接銀行的 100 億美元，我們如何從混合中考慮這一點觀點和成本觀點以及你如何看待這個長期？

You're talking about the $8 billion from where we are in May to the end of this year?

你說的是從 5 月份到今年年底的 80 億美元？

Yes. I think you said you expect $8 billion to flow out from SVB and then replace it with $10 billion from the direct bank, if I heard you correctly?

是的。我想你說過你預計 80 億美元會從 SVB 流出，然後從直接銀行流出 100 億美元，如果我沒聽錯的話？

That's correct. And really, it's just -- it's more related to the nature of the SVB business and the cash burn that we continue to expect. Now if inflows come into the marketplace, we could be being very conservative there. But it's just really a continuation of cash burn throughout the remainder of the year. Elliot can provide some of the industrial logic that we went through in developing that specific number. So we didn't just pull that number out of the air. So Elliot, why don't you talk about how we've built that projection.

這是正確的。實際上，這與 SVB 業務的性質以及我們繼續預期的現金消耗更為相關。現在，如果資金流入市場，我們可能會非常保守。但這實際上是今年餘下時間持續的現金消耗。 Elliot 可以提供我們在開發該特定數字時所經歷的一些工業邏輯。所以我們不只是把這個數字從空中拉出來。那麼 Elliot，你為什麼不談談我們是如何建立這個預測的。

Yes, absolutely. So a few things, as far as cost basis is really kind of embedded in our deposit beta side there, so we factored that in. If you look at kind of our offering rates in the direct bank, really, that marginal cost is coming in somewhere kind of a 4.75% type range. The overall Silicon Valley book right now, lending kind of noninterest-bearing and interest-bearing is around 1.50%. So certainly a delta there that we're replacing kind of what we'd call a conservative $8 billion decline in the Silicon Valley book with kind of the incremental on the direct bank. I'd say, as Craig mentioned kind of industrial logic, I think we've seen the stabilization here. I think when we look at the amount of kind of new funding capture and absolute levels of that being lower right now in the economy, that's really kind of what's leading us to that $8 billion decline.

是的，一點沒錯。因此，就成本基礎而言，有幾件事確實嵌入了我們的存款貝塔方面，因此我們將其考慮在內。如果您查看我們在直接銀行中提供的利率，實際上，邊際成本正在計算在內某種程度上是 4.75% 的類型範圍。目前整個矽谷的賬簿，無息和有息貸款種類在1.50%左右。所以肯定有一個三角洲，我們正在用直接銀行的增量來取代我們所謂的矽谷賬簿中保守的 80 億美元下降。我想說，正如克雷格提到的某種工業邏輯，我認為我們已經看到這裡的穩定。我認為，當我們查看新融資的數量以及目前經濟中較低的絕對水平時，這確實是導致我們出現 80 億美元下降的原因。

I think with positive initial steps that we've seen in client outreach, the stabilization we've seen, we are hopeful that's a conservative number and optimism of the upside there.

我認為，通過我們在客戶外展中看到的積極的初步步驟，我們看到的穩定，我們希望這是一個保守的數字和樂觀的上行空間。

This is Peter Bristow. Let me make a quick comment about it as well. One of the things that could potentially impact that is, again, because of the sort of the lack of transactional volume that's going on in the VC and the PE space, that drives balances down in our global fund business. So that's sort of -- and as that cash burn continues, we think that -- which we think it will, but that could turn around quickly if there were some sort of change in sort of the tenor in the environment. So that's part of that as well.

這是彼得·布里斯托。讓我也快速評論一下。可能會產生影響的其中一件事是，由於 VC 和 PE 領域正在發生的那種缺乏交易量的情況，這導致我們全球基金業務的平衡下降。所以這有點 - 隨著現金燃燒的繼續，我們認為 - 我們認為它會，但如果環境中的男高音發生某種變化，這種情況可能會迅速扭轉。所以這也是其中的一部分。

So the punchline here is that we could be being conservative if market dynamics change.

所以這裡的妙語是，如果市場動態發生變化，我們可能會變得保守。

Yes. I have no doubt you're probably on the conservative end of that. So I appreciate that. Okay. I guess, obviously, this is massively capital accretive as well, CET1 well north of your targeted range. I guess kind of 2 questions around that. One, where do we stand on potential for a buyback announcement later this year? Has anything changed there? And then even though your deposits are stabilizing from Silicon Valley, the market is clearly assuming that there's a lot more outflows to come and there's some distressed banks kind of in your footprint. Do you think about additional M&A with all your capital? Or do you kind of digest Silicon Valley and see where you land down the road?

是的。我毫不懷疑你可能在這方面比較保守。所以我很感激。好的。我想，很明顯，這也極大地增加了資本，CET1 在您的目標範圍以北。我想大概有兩個問題。第一，我們對今年晚些時候宣布回購的可能性有何看法？那裡有什麼變化嗎？然後即使你的存款從矽谷穩定下來，市場顯然假設會有更多的資金流出，而且你的足跡中有一些陷入困境的銀行。你是否考慮用你所有的資金進行額外的併購？或者你是否消化了矽谷，看看你在路上的落腳點？

Well, we always think about M&A, but we do need to digest SVB, as I mentioned your second question first. But we certainly acknowledge that our capital ratios are well above our target ranges right now, and we project them to remain elevated in '23 and '24. One thing that everyone needs to keep in mind is that loss share coverage provided about a 2% benefit to all of our risk-based capital ratios. So without loss share, we'd be over our target CET1 range, near the top on Tier 1 and towards the bottom of total capital. Now earnings will replenish those and continue them growing well above our target ratios going forward.

好吧，我們一直在考慮併購，但我們確實需要消化 SVB，正如我首先提到的第二個問題。但我們當然承認，我們的資本比率目前遠高於我們的目標範圍，我們預計它們將在 23 年和 24 年保持較高水平。每個人都需要記住的一件事是，損失分攤覆蓋範圍為我們所有基於風險的資本比率提供了大約 2% 的收益。因此，在沒有損失份額的情況下，我們將超過我們的目標 CET1 範圍，接近一級的頂部和總資本的底部。現在收益將補充這些，並繼續增長，遠高於我們未來的目標比率。

So as we've stated previously, it's part of our capital planning process to assess capital, assess capital actions, including share repurchases, which remain an important part of our toolkit to manage capital. We are currently slated to take a combined capital plan to our Board for approval in late July. And this plan will contemplate all of our capital actions after we have considered the external environment, the behavior and capital needs of the SVB portfolio as well as the dynamics on risk-weighted assets of this loss share. So a lot going on there. So at this sitting, given that our combined capital plan is under construction, it's too early to provide timing of an SRP.

因此，正如我們之前所說，評估資本、評估資本行動（包括股票回購）是我們資本規劃流程的一部分，這仍然是我們管理資本工具包的重要組成部分。我們目前計劃在 7 月下旬向董事會提交合併資本計劃以供批准。在我們考慮了外部環境、SVB 投資組合的行為和資本需求以及該損失份額的風險加權資產動態之後，該計劃將考慮我們所有的資本行動。那裡發生了很多事情。因此，在本次會議上，鑑於我們的聯合資本計劃正在建設中，現在提供 SRP 的時間還為時過早。

Okay. And then last one for me is just around the $650 million in kind of merger charges you noted and you noted investments to try to retain the people from SVB. Is the cost of attempting to retain and incentivize those employees, is that kind of contained within that $650 million? Or could that be, I guess, incremental? And how do you think about those investments?

好的。最後一個對我來說就是你提到的 6.5 億美元的合併費用，你提到了試圖留住 SVB 人員的投資。試圖留住和激勵這些員工的成本是否包含在這 6.5 億美元中？或者，我猜，這可能是漸進的嗎？您如何看待這些投資？

No, that is 60% of that $650 million is personnel related.

不，這 6.5 億美元中有 60% 與人事相關。

Extremely helpful. Congrats on the deal in the quarter.

非常有幫助。祝賀本季度的交易。

Thank you, Mr. Scouten. The next question comes from Brady Gailey with KBW.

謝謝你，斯科滕先生。下一個問題來自 KBW 的 Brady Gailey。

So I wanted to start with one more question on the common equity Tier 1. I think in the past, you guys have talked about internally at First Citizens, a 9% to 10% target. It feels like the world has kind of changed over the last quarter. So what's the new range? Like how should we think about where your target is going to be like knowing that AOCI could eventually get embedded in common equity Tier 1? How do you think about that new range?

所以我想從另一個關於普通股一級的問題開始。我想過去，你們在 First Citizens 內部討論過 9% 到 10% 的目標。感覺世界在上個季度發生了一些變化。那麼新範圍是什麼？比如我們應該如何考慮你的目標會在哪裡，比如知道 AOCI 最終可以嵌入普通股一級？您如何看待這個新系列？

Well, we don't have any plans currently to change it. That obviously would be contemplated in the capital plan because as the ratio is set at the end of the first quarter, even including HTM and AOCI losses -- unrealized losses in the ratio, we were over the target range by 1% with HTM and AFS losses and by 2% with just AFS losses included. So at this setting, we don't contemplate change in the range but obviously, those types of things will be considered in our capital plan. But keep in mind, too, the loss share coverage is providing a little bit of boost to these ratios. So we're going to take all of that into consideration in developing our plan going forward. Tom, do you have any comments to add on that?

好吧，我們目前沒有任何改變它的計劃。這顯然會在資本計劃中考慮到，因為該比率是在第一季度末設定的，即使包括 HTM 和 AOCI 損失——比率中的未實現損失，我們的 HTM 和 AFS 超出目標範圍 1%損失和 2%，僅包括 AFS 損失。因此，在這種情況下，我們不會考慮範圍內的變化，但顯然，我們的資本計劃中會考慮這些類型的事情。但也請記住，損失份額覆蓋範圍正在為這些比率提供一點提升。因此，我們將在製定未來計劃時考慮所有這些因素。湯姆，你對此有什麼要補充的嗎？

No. I mean I think it's important to note, I mean, we're building the very similar to how other large banks do it. We go through sort of our internal stress test methodology, look at what potential capital burn to be -- could be and sort of build up from there. So unless we see a material change in risk profile, we don't expect material changes to our overall capital range.

不，我的意思是我認為重要的是要注意，我的意思是，我們正在建立與其他大型銀行的做法非常相似的方式。我們通過某種內部壓力測試方法，看看潛在的資本燃燒是什麼——可能是什麼，並從那裡開始積累。因此，除非我們看到風險狀況發生重大變化，否則我們預計我們的整體資本範圍不會發生重大變化。

Okay. And then just back to the buyback comment, I know it's according to your plan and you got to get to the Board. But what is your gut tell you? Do you think First Citizens will buy back stock in the back half of the year? I know you did about 1.5 million shares last year. I mean do you think that's likely?

好的。然後回到回購評論，我知道這是根據你的計劃，你必須去董事會。但是你的直覺告訴你什麼？你認為 First Citizens 會在下半年回購股票嗎？我知道你去年買了大約 150 萬股。我的意思是你認為這可能嗎？

I can't comment on that at this time.

我現在不能對此發表評論。

Okay. All right. And then -- so the loan-to-deposit ratio, historically, it's been pretty low at First Citizens, I know with Silicon Valley, it's up near 100%. Do you work to get that down over time? And what's the kind of longer-term target for loan deposit ratio.

好的。好的。然後——從歷史上看，First Citizens 的貸存比一直很低，我知道矽谷的貸存比接近 100%。隨著時間的推移，你會努力降低它嗎？貸存比的長期目標是什麼？

We -- obviously, we don't believe that 100% is sustainable long term. However, in the short term, given that we took a purchase money note and have the FDIC LOC in place, we have time to get it back in line. Longer term, Frank and I just talked about this morning, so it's a very relevant question. We'd like to see an 8 handle on the loan-to-deposit ratio. So that's sort of our -- that's sort of where we feel like it should be considering our earning assets, net cash, et cetera, on the balance sheet. So around having an 8 handle on this will be more comfortable over the long term.

我們 - 顯然，我們不相信 100% 是長期可持續的。然而，在短期內，鑑於我們已經購買了一張購買票據並擁有 FDIC LOC，我們有時間讓它恢復正常。從長遠來看，弗蘭克和我今天早上剛談過，所以這是一個非常相關的問題。我們希望看到貸存比達到 8。這就是我們的 - 這就是我們認為應該在資產負債表上考慮我們的盈利資產、淨現金等的地方。因此，從長遠來看，在這方面擁有 8 個手柄會更加舒適。

Okay. All right. And then finally for me, I know historically, First Citizens has been asset-sensitive. Once you layer in Silicon Valley, can you just talk about the sensitivity to interest rates of the new company?

好的。好的。最後對我來說，我從歷史上知道，第一公民一直對資產敏感。一旦你在矽谷分層，你能談談新公司對利率的敏感性嗎？

Yes. The addition of cash and variable rate loans on the asset side and the purchase money note on the liability side, fairly significantly increased our asset sensitivity but we are very accepting of the downside risk here because, number one, liquidity is our top priority in the current operating environment and number two, the cost of hedging to mitigate downside risk make cost-effective hedging difficult. So for example, if we tried to swap the purchase money note that is floating that costs us about 150 basis points. So we're comfortable where we sit. We're also comfortable where our margin lands after rate cuts. So as we sit here right now, we're pretty pleased where we are from an interest rate risk standpoint.

是的。在資產方面增加現金和可變利率貸款以及在負債方面購買貨幣票據，相當顯著地增加了我們的資產敏感性，但我們非常接受這裡的下行風險，因為第一，流動性是我們的首要任務當前的經營環境和第二，降低下行風險的對沖成本使得具有成本效益的對沖變得困難。因此，例如，如果我們嘗試交換浮動的購買票據，我們將花費大約 150 個基點。所以我們坐的地方很舒服。我們也對降息後的利潤率感到滿意。因此，當我們現在坐在這裡時，從利率風險的角度來看，我們非常高興。

Thank you, Mr. Gailey. The next question comes from the line of Kevin Fitzsimmons with D.A. Davidson.

謝謝你，蓋利先生。下一個問題來自 Kevin Fitzsimmons 和 D.A.戴維森。

I was just wondering on Brady's -- just dovetailing on Brady's question there. If we look at the percentage net interest margin, Craig, any way to kind of best describe whether you want to talk core ex purchase accounting or all-in versus the -- what was about 3.41 margin this quarter, where to kind of think about the trajectory of that as it's baked into your guidance on NII.

我只是想知道 Brady 的問題——正好與 Brady 的問題相吻合。如果我們看一下淨息差百分比，克雷格，任何方式都可以最好地描述你是想談論核心前採購會計還是全包——本季度大約 3.41 的利潤率，在哪裡考慮當它融入你對 NII 的指導時，它的軌跡。

Yes. And are you asking with and without accretion?

是的。你問的是有吸積還是沒有吸積？

I mean -- yes, but if you can give it both, but maybe all in with accretion, like how you see that GAAP margin trending?

我的意思是 - 是的，但如果你能同時給予它，但也許全部都在增加，比如你如何看待 GAAP 利潤率趨勢？

Right. I got you. So if you look at -- if you just look at the -- and I'm going to -- when I talk about purchase accounting impact, there's still some residual impact from CIT out there, but it's fairly immaterial to the impact of SVB. So if you look at our margin at the end of the first quarter, we were at 3.41%, and that was 14 basis points was purchase accounting related. So without it, it would've been 3.26%. We looked at the margins migrating upward in the second quarter to 4%, 52 basis points of which is purchase accounting accretion. And then given that we have rate cuts starting in July, we have another in September 1 and December, margin falls to 3.86% in the third quarter of '23 and then 3.70% in the fourth quarter. So we see a migration down as rates decline, which would be expected to given our asset sensitivity. But still feel like the 3.80% margins for the year will be very strong.

正確的。我接到你了。所以如果你看看 - 如果你只看 - 我打算 - 當我談到採購會計影響時，CIT 仍然有一些殘餘影響，但它對 SVB 的影響相當不重要.因此，如果你看看我們在第一季度末的利潤率，我們的利潤率為 3.41%，與採購會計相關的是 14 個基點。所以如果沒有它，它會是 3.26%。我們觀察了第二季度利潤率上升至 4%，其中 52 個基點是採購會計增長。然後考慮到我們從 7 月開始降息，我們在 9 月 1 日和 12 月再次降息，利潤率在 23 年第三季度降至 3.86%，然後在第四季度降至 3.70%。因此，我們看到隨著利率下降而向下遷移，考慮到我們的資產敏感性，這在意料之中。但仍然感覺今年 3.80% 的利潤率會非常強勁。

Okay. Now, you're pegging that off of the 3.26%, Craig? Or are you off of the 3.41%.

好的。現在，克雷格，你把它與 3.26% 掛鉤了？還是您不在 3.41% 之列？

I'm pegging it off of the 3.40%.

我將其與 3.40% 掛鉤。

Got it. Okay. Very helpful. And then on that topic, like I know what the forward curve says. But if we -- I think you kind of alluded to it in your comments, if we do have more of a higher for longer environment, given the asset sensitivity you spoke of, then there's likely upside to that margin projection as well as NII. Is that a fair way to think of it?

知道了。好的。很有幫助。然後關於那個話題，就像我知道遠期曲線所說的那樣。但如果我們——我認為你在評論中提到了這一點，如果我們確實有更高的長期環境，考慮到你所說的資產敏感性，那麼利潤率預測和 NII 可能會有上行空間。這是一個公平的思考方式嗎？

Yes, there is. I think for this.

就在這裡。我想為此。

The rest perhaps don't happen or is that something else.

其餘的可能不會發生，或者是其他事情。

Yes, I think that's right. I mean, if we didn't get rate cuts this year, I think we would have a 7 basis points higher margin. Obviously, it takes time for those impacts to get fall through. So the impact on '24 will be a little higher and about $6 on the EPS. So -- but next year, higher for longer would be even more significant.

是的，我認為這是對的。我的意思是，如果我們今年沒有降息，我認為我們的利潤率會高出 7 個基點。顯然，這些影響需要時間才能消除。因此，對 24 年的影響會略高一些，每股收益約為 6 美元。所以 - 但明年，更高的時間更長將更加重要。

Okay. One question on deposits, you mentioned the diversity by region, the increased diversity by region. But how do you plan to curb or put guardrails in on the large lumpy deposits, larger customers that was a case that was evident at SVB. How do you -- I know you want a lot of their customers, a lot of their deposits coming in, but how do you prevent that from becoming an issue at the broader persistence?

好的。一個關於存款的問題，你提到了按地區劃分的多樣性，按地區劃分的多樣性增加。但是，你打算如何遏製或設置護欄，以防止大量塊狀存款、更大的客戶，這在 SVB 就是一個明顯的例子。你如何 - 我知道你想要他們的很多客戶，他們的大量存款，但你如何防止這在更廣泛的持久性中成為一個問題？

Well, I mean in terms of our large commercial depositors or large depositors, many of them have long-term relationships with us. And when we break this down, some of them for decades, so we stay in touch with them, and they know we're strong and stable, as Frank mentioned. So I don't anticipate that we're going to see an outflow there even with what's going on in the external environment. We have seen some customers move money into secured suites or interest-bearing accounts for diversification and ease of mind, but it has not been widespread.

好吧，我的意思是就我們的大型商業存款人或大型存款人而言，他們中的許多人與我們有長期關係。當我們打破這一點時，其中一些已經存在了幾十年，所以我們與他們保持聯繫，他們知道我們強大而穩定，正如弗蘭克提到的那樣。因此，我預計即使外部環境正在發生，我們也不會在那裡看到資金外流。我們已經看到一些客戶將資金轉移到安全套間或計息賬戶中，以實現分散和省心，但這種情況並不普遍。

And we're just staying in front of our customers and have long relationships with them. So we don't really see that as being a big issue for us.

我們只是站在我們的客戶面前，並與他們保持長期的關係。所以我們真的不認為這對我們來說是一個大問題。

Okay. And one last one just on the borrowing, the presence of the borrowing, you have the FDIC line. Are the intentions to keep that in place for the foreseeable future, just given the focus on maintaining a liquid and fortress balance sheet.

好的。最後一個關於借款，借款的存在，你有 FDIC 線。是否打算在可預見的未來保持這一點，只是因為重點是維持流動性和堡壘資產負債表。

We would certainly longer term like to shift our funding mix to core deposits, but that's not going to happen rapidly. So what we are envisioning is replacing the purchase money note with some level of long-term debt, TLAC-type borrowings and then a portion being paid off through increases in core deposits over that 5-year period. So it would be -- we have a gradual burn down of the purchase money note shifting to other wholesale sources of funding for deposits over time. Tom, do you want to...

從長遠來看，我們當然希望將我們的資金組合轉向核心存款，但這不會很快發生。因此，我們設想的是用一定水平的長期債務、TLAC 型借款取代購買鈔票，然後通過 5 年期間核心存款的增加來償還一部分。所以它會是 - 隨著時間的推移，我們逐漸減少購買鈔票轉移到其他批發資金來源以獲得存款。湯姆，你想...

No, I think that's well put. I mean we're really focusing on getting that on. And on the FDIC line, that, therefore, continuous purposes to support the transaction is obviously something we keep in place here in the immediate future.

不，我認為這很好。我的意思是我們真的專注於實現它。因此，在 FDIC 線上，支持交易的持續目的顯然是我們在不久的將來保持在這裡的東西。

Thank you, Mr. Fitzsimmons. The next question comes from the line of Christopher Marinac with Janney Montgomery Scott.

謝謝你，菲茨西蒙斯先生。下一個問題來自 Christopher Marinac 和 Janney Montgomery Scott 的台詞。

Thank you for all the disclosures today. I wanted to ask about the CIT Bank and the online channel. How has that been evolving? And how do you see that playing out? Is there a different mix that can contribute, therefore, impact the funding base going forward?

感謝您今天的所有披露。我想問一下CIT Bank和在線渠道。這是如何演變的？您如何看待這種情況？因此，是否有不同的組合可以影響未來的資金基礎？

Yes, I think we mentioned we're obviously going to use that as a growth channel and continue to add core deposits. Obviously, it comes at a higher marginal cost, like Elliot discussed earlier, but some of the benefits there is, obviously, it's a well-diversified deposit portfolio. Over 90% of it is insured. And it's truly sort of that retail deposit base that we found through this last weeks or I guess the months now of sort of bank stress have been very stable and sort of a very solid funding source for us. So plan there is to continue to augment growth with that. Before the acquisition, the direct bank made up about 18% to 20% of our total deposits, and we sort of see that coming back to that in an aggregate level for the combined company.

是的，我想我們提到過我們顯然會將其用作增長渠道並繼續增加核心存款。顯然，它的邊際成本更高，就像 Elliot 之前討論過的那樣，但其中的一些好處顯然是一個多元化的存款組合。 90%以上都投保了。這確實是我們在過去幾週發現的那種零售存款基礎，或者我猜現在幾個月的銀行壓力一直非常穩定，對我們來說是一種非常可靠的資金來源。因此，計劃繼續增加增長。在收購之前，直接銀行約占我們總存款的 18% 至 20%，我們看到合併後公司的總體水平又回到了這一水平。

Yes, we expect -- I think, Tom, we're expecting an increase by about 22% from that 18 and then normalize in '24.

是的，我們預計——我認為，湯姆，我們預計從 18 年開始增加約 22%，然後在 24 年恢復正常。

Got it. And then I just want to dig a little bit deeper on the office CRE and all the disclosures there. So the high level of criticized loans in the office, how much of that is your internal rating system and just being an abundance of caution versus expectations that there are defaults out there?

知道了。然後我只想更深入地了解辦公室 CRE 和那裡的所有披露。因此，辦公室中受到批評的貸款水平很高，其中有多少是您的內部評級系統，只是非常謹慎而不是對那裡存在違約的預期？

Andy, can you take that one?

安迪，你能接受那個嗎？

Sure. It is -- we do a deep dive on the portfolio monthly. And so it is a combination of -- we believe our credit ratings are accurate and timely as well as individually evaluating each property type.

當然。這是 - 我們每月對投資組合進行深入研究。因此，它結合了——我們相信我們的信用評級是準確及時的，並且對每種財產類型進行了單獨評估。

Great. And would you envision that the same level of office exposure looking out a year or 2 would be the same? I know it's not high, but just curious if that would incrementally come down as we roll forward.

偉大的。你會想像一年或兩年後相同水平的辦公室曝光會是一樣的嗎？我知道它並不高，但只是好奇它是否會隨著我們向前推進而逐漸下降。

In terms of criticized levels?

在批評水平方面？

Really just the percentage of the book altogether of the total loan composition.

實際上只是賬面總額佔總貸款構成的百分比。

Sorry. Yes, we are not originating any new office. So I would imagine in terms of an absolute dollars in office exposure, that would come down.

對不起。是的，我們不會設立任何新辦事處。所以我想就辦公室曝光的絕對美元而言，這會下降。

And then any other just overall credit trends from the criticized perspective this quarter beyond the office information that you broke out.

然後，除了您發布的辦公室信息之外，本季度從批評的角度來看任何其他整體信用趨勢。

As Craig noted, we did see some migration in our equipment finance, small ticket leasing portfolio. And then some migration in the commercial bank, but not much.

正如 Craig 指出的那樣，我們確實看到了我們的設備融資、小額租賃組合中的一些遷移。然後是商業銀行的一些遷移，但不多。

Thank you, Mr. Marinac. The next question comes from the line of Brody Preston with UBS.

謝謝你，馬里納克先生。下一個問題來自 Brody Preston 與 UBS 的對話。

Craig, I just wanted to follow up on the expenses. It sounded like the expense base that you're working off of is $2.6 billion for legacy SVB and then 25% to 30% cost savings. I think I heard you correct, but you said by the year-end 2024, I guess, could you help us better understand the cadence of the cost savings, where you expect the exit run rate on noninterest expense to be for the fourth quarter of '23 and then how much is left for 2024?

克雷格，我只是想跟進費用。聽起來您正在處理的費用基礎是舊 SVB 的 26 億美元，然後節省了 25% 到 30% 的成本。我想我沒聽錯，但你說到 2024 年底，我想你能幫助我們更好地了解成本節約的節奏嗎？ '23 然後到 2024 年還剩多少？

Yes. We are projecting a range of $650 million to $780 million. So that's 25% to 30% of the baseline coming into the acquisition. And we would expect that of that $650 million to $780 million that roughly half of it would be in the run rate at the end of 2023 and then 100% of it would be in the run rate by the end of 2024.

是的。我們預計範圍為 6.5 億至 7.8 億美元。所以這是收購基準的 25% 到 30%。我們預計，在這 6.5 億至 7.8 億美元中，到 2023 年底，大約一半將處於運行率，然後到 2024 年底，其中 100% 將處於運行率。

Got it. Okay. And could you help me -- could you give us what the loan yields and what the deposit costs were from SVB when they came over?

知道了。好的。你能幫我嗎——你能告訴我們當他們過來時，SVB 的貸款收益率和存款成本是多少嗎？

Okay. So loan yield for this year prepurchase accounting would be 6.02, so that's the '23 projection. It was 5.49 in the first quarter. I mean it was 6.57 for the first quarter, I'm sorry. And so for the year, 6.56 and then combined, we're 6.62. So we're pretty close on yields First Citizens and SVB there. Deposit costs, and I'm talking about interest-bearing -- or cost of interest-bearing deposits -- let me see if I have this, okay, cost of deposits, I don't have SVB broken out separately but we were at 1.24 in the first quarter. And Eli, I think I recall SVB was like 1.06. So very similar to ours, and we have that escalating to 1.59 or 1.69 by the fourth quarter, for 1.59 for the year. So SVB was slight low to cost of deposits, slightly, so they were accretive to margin and slightly higher than us on loan yield and lower than us on cost of deposits.

好的。因此，今年預購會計的貸款收益率為 6.02，這就是 23 年的預測。第一季度為5.49。我的意思是第一季度是 6.57，對不起。所以今年，6.56，然後合併，我們是 6.62。因此，我們在 First Citizens 和 SVB 那裡的收益率非常接近。存款成本，我說的是生息——或生息存款的成本——讓我看看我是否有這個，好吧，存款成本，我沒有單獨列出的 SVB，但我們在第一季度1.24。 Eli，我想我記得 SVB 是 1.06。與我們的非常相似，到第四季度我們將升至 1.59 或 1.69，全年為 1.59。所以 SVB 的存款成本略低，略低，所以它們增加了利潤率，貸款收益率略高於我們，存款成本低於我們。

Got it. And do you happen to have what the mix of SVB's deposits were between noninterest-bearing and interest-bearing at April 30? And then with the projected runoff that you gave, what the mix of those deposits look like going forward?

知道了。您是否碰巧知道 4 月 30 日 SVB 的無息存款和有息存款的混合情況？然後根據您給出的預計徑流，這些存款的組合未來會是什麼樣子？

Hold on one second. I think we have that as of March 31.

等一下。我認為截至 3 月 31 日我們已經有了。

You asked for April 30, we would only talk about March 31.

你問的是 4 月 30 日，我們只會談論 3 月 31 日。

Okay. Okay. Brody, this is Elliot Howard. So in kind of our assumptions, March 31 roughly 62%, we see that kind of migrating down to kind of the mid- to low 50s of noninterest-bearing total.

好的。好的。布羅迪，這是埃利奧特霍華德。因此，根據我們的假設，3 月 31 日大約為 62%，我們看到這種情況正在下降到 50 多歲的無息總額。

All right. Great. That's helpful. And then I did want to ask just on the capital ratios. I understand that for most of them, you're pretty well above your operating range. But I did notice that on the Tier 1 leverage, if you adjust for the day count, you're kind of right in the middle. And so I did want to ask just as we think about buybacks going forward and understand that you have your capital planning later in July, which ratio should we view as more constraining from a buyback perspective? Should we focus on the CET1? Or should it be all of them? And so would Tier 1 leverage play a role there as well?

好的。偉大的。這很有幫助。然後我確實只想問一下資本比率。我知道對於他們中的大多數人來說，您已經遠遠超出了您的操作範圍。但我確實注意到，在一級槓桿上，如果你調整天數，你就在中間。因此，當我們考慮未來的回購併了解您在 7 月晚些時候制定了資本計劃時，我確實想問，從回購的角度來看，我們應該將哪個比率視為更具限制性？我們應該專注於CET1嗎？或者應該是所有的？那麼一級槓桿也會在那裡發揮作用嗎？

Well, Tier 1 leverage certainly was the one that was at 9%, would be dead middle of our range. You're right. It's going to migrate up to over 10% and over 11%, '23 and '24. So it's going to be at the top of the range by the end of the year. And then well over it. In terms of buying the constraints, I'll let Tom talk a little bit to that.

好吧，一級槓桿率肯定是 9%，將處於我們範圍的中間。你說得對。它將遷移到 10% 以上和 11% 以上，'23 和 '24。因此，到今年年底，它將處於該範圍的頂部。然後就結束了。在購買約束方面，我會讓 Tom 談一談。

What I'll say there, too, is it's important to consider as you look at those ratios, you can see that Tier 1 in total are more constraining than CET1, and that's obviously due to the bargain purchase gain boosting CET1, but no Tier 1 instruments or Tier 2 instruments coming over. As we look at capital planning and looking out into the future, those are obviously things that we will consider, not in the short term with ratios where they are. But as some of these loans roll off a loss share, we would expect to maybe rightsize the slope in those ratios a little more through potential future capital raises, if that makes sense, with Tier 1 subordinated that.

我還要說的是，當您查看這些比率時，考慮這一點很重要，您可以看到 Tier 1 總體上比 CET1 更受限制，這顯然是由於廉價購買收益提高了 CET1，但沒有 Tier 1儀器或者2階儀器過來。當我們審視資本規劃和展望未來時，這些顯然是我們會考慮的事情，而不是在短期內考慮現有比率。但隨著其中一些貸款減少虧損份額，我們預計可能會通過未來潛在的資本籌集來進一步調整這些比率的斜率，如果這是有道理的話，一級次級。

Okay. Great. I'm just trying to rattle off a couple more quickly here. I did want to ask just when we think about the size of the balance sheet now, and this is a couple-part question, what spend -- I guess, what additional expenses do you need to kind of have now that you're a larger bank, thinking about it from a regulatory perspective. And then when you think about some of the things that have been stated by the regulators in the wake of some of the bank failures, it feels like some of the tailoring rules might be going away and the line in the sand might be getting pushed back to $100 billion in assets. And so, have you contemplated what your needs will be from a total loss-absorbing capacity perspective, TLAC? And then help us think about where you are in being prepared for LCR.

好的。偉大的。我只是想在這裡更快地說出一些。我確實想問一下我們現在什麼時候考慮資產負債表的規模，這是一個由兩部分組成的問題，支出是多少——我想，既然你是一個較大的銀行，從監管的角度考慮。然後，當你想到監管機構在一些銀行倒閉後發表的一些事情時，感覺一些定制規則可能會消失，沙子中的界限可能會被推後達到 1000 億美元的資產。那麼，您是否從總損失吸收能力的角度考慮過您的需求，TLAC？然後幫助我們考慮您在為 LCR 準備的哪些方面。

Yes. Tom had just briefly mentioned TLAC and capital stack mix. So we do contemplate if we were subject to those rules that we would expect some mix of preferred sub debt and senior debt. And right now, that range for us is probably somewhere in the $7 billion to $10 billion range with a heavy portion of that in senior debt and the smaller portion in preferred stock and sub debt. But we definitely are monitoring regulatory changes, the capital and liquidity tailoring rules and areas that impact us. And I think we're going to have more stringent regulatory oversight, obviously, here and we're ready for that, and we'll be prepared for it. I'll let Laura talk a little bit about our investment in risk and management, which we think we're well positioned to absorb SVB within our risk management framework.

是的。 Tom 剛剛簡要提到了 TLAC 和資本堆棧組合。因此，我們確實考慮過，如果我們遵守這些規則，我們會期望優先次級債務和優先債務的某種組合。而現在，對我們來說，這個範圍可能在 70 億美元到 100 億美元之間，其中很大一部分是高級債務，較小部分是優先股和次級債務。但我們肯定會監控監管變化、資本和流動性調整規則以及影響我們的領域。而且我認為我們將有更嚴格的監管監督，顯然，在這裡我們已經準備好，我們會為此做好準備。我會讓勞拉談談我們在風險和管理方面的投資，我們認為我們已經做好了在風險管理框架內吸收 SVB 的準備。

Thanks, Craig. What I would say is, over the last year, we've built a risk management program as a result of the CIT integration to meet regulatory expectations from a large bank perspective. So that's in place today and we have begun our alignment of the SVB businesses and processes into that risk management program and we'll expect to fully invest from a technology and a people perspective to ensure our risk management program aligns with our current size and it's scalable for any future growth.

謝謝，克雷格。我要說的是，在過去的一年裡，由於 CIT 整合，我們已經建立了一個風險管理計劃，以滿足從大型銀行的角度來看的監管期望。所以今天已經到位，我們已經開始將 SVB 業務和流程納入該風險管理計劃，我們將期望從技術和人員的角度進行全面投資，以確保我們的風險管理計劃與我們目前的規模保持一致，並且它是可擴展以適應任何未來的增長。

I was just going to make a comment on the liquidity side. I mean there's a lot of talk about LCR and liquidity buffers and everything. We believe we're coming in from a position of strength there, obviously, with the lower concentration in investment securities, higher concentration in cash. So we believe we're well prepared from that perspective.

我只是想就流動性方面發表評論。我的意思是有很多關於 LCR 和流動性緩衝以及所有內容的討論。我們相信我們是從那裡的優勢地位進來的，顯然，投資證券的集中度較低，現金集中度較高。因此，我們相信從這個角度來看我們已經做好了充分的準備。

Yes, that's a fair point. I'll ask one more and then leave it there. I just want to ask just on the loans -- on managing the balance sheet, a couple of questions here within this. Could you give us a sense for what the loans from SVB that had run off following the acquisition were? And then within your projections, right, for 2023 and I know, Craig, it will probably be a longer-term kind of thing to get back down to a 8 handle loan-to-deposit ratio but where do you see kind of loan balances kind of going longer term? And is there -- are there any portfolios that you've kind of circled as ones that more likely have runoff capacity going forward through 2024, just given that the deposit environment is likely to remain challenging for a little bit for the industry?

是的，這是一個公平的觀點。我會再問一個然後把它留在那裡。我只想問關於貸款——關於管理資產負債表的問題，這裡有幾個問題。您能否告訴我們在收購後從 SVB 流出的貸款有哪些？然後在你的預測中，對，對於 2023 年，我知道，克雷格，回到 8 處理貸存比可能是一種長期的事情，但你在哪裡看到貸款餘額有點長期？並且有沒有 - 是否有任何投資組合你已經圈出，因為這些投資組合更有可能在 2024 年之前有徑流能力，只是考慮到存款環境可能對行業來說仍然有點挑戰？

Yes. I'll let Elliot talk about our forecast, but I'll make some broad comments. Just in terms of this year, we're expecting from the first quarter of this year for loans to decline by 2% and that's an 8% decline in SVB and a 3% increase in the FCB portfolio. Within FCB, we think that the growth will be broad-based as it has been in the branch network and the industry verticals, but down from first quarter levels as we expect demand to soften the Fed tightening as customers become a little more cautious given the potential for a recession. So we backed off of the current level of growth, which is 8% annualized in the first quarter. In terms of SVB, we are projecting an 8% decline, which would settle loans down about $61 billion and the expectation there is public and private markets will remain muted for the remainder of '23. As Peter mentioned, there could be some upside if that's not the case. And we certainly hope so. And that's my comment. Eli, do you have anything to add to that?

是的。我會讓 Elliot 談談我們的預測，但我會發表一些廣泛的評論。就今年而言，我們預計從今年第一季度開始貸款將下降 2%，即 SVB 下降 8%，FCB 投資組合增加 3%。在 FCB 內部，我們認為增長將是廣泛的，因為它一直在分支網絡和垂直行業中，但低於第一季度的水平，因為我們預計隨著客戶變得更加謹慎，美聯儲的緊縮政策將有所緩和。經濟衰退的可能性。因此，我們放棄了目前的增長水平，第一季度的年化增長率為 8%。就 SVB 而言，我們預計下降 8%，這將使貸款減少約 610 億美元，並且在 23 年剩餘時間內，公共和私人市場的預期將保持低迷。正如彼得所提到的，如果情況並非如此，可能會有一些好處。我們當然希望如此。這就是我的意見。 Eli，你有什麼要補充的嗎？

Yes. Brody, I would just tack up kind of what Craig said. I think when you look at it, the largest portion of the Silicon Valley book is the Global Funds Banking. And so that's the part that we expect to decline a little bit here, and that's really a reflection not of kind of losing market share. It's really of the underlying just market activity. And so that's -- private bank pretty stable, same with tech and health care.

是的。布羅迪，我只想補充一下克雷格所說的話。我想當你看的時候，矽谷這本書的最大部分是全球基金銀行業務。因此，這就是我們預計在這裡會有所下降的部分，這實際上反映的不是失去市場份額。這實際上是潛在的公正市場活動。這就是——私人銀行非常穩定，科技和醫療保健也是如此。

Thank you, Mr. Preston. I'm not showing any further questions at this time. I'd like to turn the call back over to our host, Deanna Hart for any closing remarks.

謝謝你，普雷斯頓先生。我現在不顯示任何進一步的問題。我想將電話轉回我們的主持人 Deanna Hart，聽取任何結束語。

Thank you, everyone, for participating in our call today. We appreciate your ongoing interest in our company. And if you have any further questions or need additional information, please feel free to reach out to the Investor Relations team.

謝謝大家今天參加我們的電話會議。感謝您對我們公司的持續關注。如果您有任何其他問題或需要更多信息，請隨時聯繫投資者關係團隊。

Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Have a wonderful day.

女士們，先生們，今天的電話會議到此結束。您現在可以斷開連接。祝你有美好的一天。