First Financial Bancorp (FFBC) 2024 Q2 法說會逐字稿

Thank you for standing by.

謝謝你的支持。

My name is Ian, and I will be your conference operator today.

我叫伊恩，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the First Financial Bancorp, second quarter 2024 earnings call and webcast.

此時此刻，我謹歡迎大家參加第一金融銀行 2024 年第二季財報電話會議和網路廣播。

(Operator Instructions) Thank you.

（操作員說明）謝謝。

I will now hand the call over to Scott Crawley, Controller.

我現在將把電話轉交給財務總監 Scott Crawley。

Scott you may begin your conference now.

斯科特，您現在可以開始會議了。

Thank you, Ian.

謝謝你，伊恩。

Good morning, everyone, and thank you for joining us on today's conference call to discuss First Financial Bancorp's second quarter and year-to-date financial results.

大家早安，感謝您參加今天的電話會議，討論第一金融銀行第二季和年初至今的財務表現。

Participating on today's call will be Archie Brown, President and Chief Executive Officer; Jamie Anderson, Chief Financial Officer; and Bill Harrod, Chief Credit Officer.

總裁兼執行長阿奇布朗 (Archie Brown) 將參加今天的電話會議；傑米·安德森，財務長；比爾‧哈羅德（Bill Harrod），首席信貸官。

Both the press release we issued yesterday and the accompanying slide presentation are available on our website, www.bankatfirst.com. Under the Investor Relations section, we will make reference to the slides contained in the accompanying presentation during today's call.

我們昨天發布的新聞稿和隨附的幻燈片簡報均可在我們的網站 www.bankatfirst.com 上取得。在投資者關係部分，我們將在今天的電話會議期間參考隨附簡報中包含的幻燈片。

Additionally, please refer to the forward-looking statements disclosure contained in the second quarter 2024 earnings release as well as our SEC filings for a full discussion of the company's risk factors.

此外，請參閱 2024 年第二季收益發布中包含的前瞻性聲明揭露以及我們向 SEC 提交的文件，以全面討論本公司的風險因素。

The information we will provide today is accurate as of June 30, 2024, and we will not be updating any forward-looking statements to reflect facts or circumstances after this call, and I'll turn the call over to Archie Brown.

我們今天提供的資訊截至2024 年6 月30 日都是準確的，我們不會更新任何前瞻性聲明來反映本次電話會議後的事實或情況，我會將電話轉給阿奇·布朗(Archie Brown )。

Thank you, Scott.

謝謝你，斯科特。

Good morning, everyone, and thank you for joining us for today's call.

大家早安，感謝您參加我們今天的電話會議。

Yesterday afternoon, we announced our financial results for the second quarter.

昨天下午，我們公佈了第二季的財務表現。

I'll provide some highlights on our recent performance and then turn the call over to Jamie to provide further information.

我將提供有關我們最近表現的一些要點，然後將電話轉給傑米以提供更多資訊。

We had an outstanding quarter.

我們度過了一個出色的季度。

Adjusted earnings per share was $0.65 in the second quarter, which resulted in a return on assets of 1.4% and return on tangible common equity of 20.9%.

第二季調整後每股盈餘為 0.65 美元，資產報酬率為 1.4%，有形普通股報酬率為 20.9%。

Loan growth was exceptionally strong again this quarter with balances increasing by 11% on an annualized basis.

本季貸款成長再次異常強勁，餘額年化成長 11%。

And this was a significant driver in the increase in net interest income growth was broad-based and was led by commercial banking.

這是淨利息收入成長的重要推動力，成長基礎廣泛，並由商業銀行主導。

Similarly, average deposits grew approximately 11% for the period with interest bearing deposits and a seasonal increase in public fund balances, driving the increase of 4.1%.

同樣，期內平均存款成長約11%，其中計息存款和公共基金餘額季節性成長推動了4.1%的成長。

Net interest margin was unchanged in the first quarter and remains at or near the top of the peer group.

第一季淨利差維持不變，仍處於或接近同業最高水準。

Total adjusted revenue increased $14.4 million or 7% compared to the linked quarter.

調整後總收入較上一季增加 1,440 萬美元，即 7%。

But additionally, we posted record adjusted non-interest income of $61.6 million growth in fee income was broad-based for the period with foreign exchange revenue growing more than 60% from the linked quarter.

但此外，我們公佈了創紀錄的調整後非利息收入 6,160 萬美元，這段期間的費用收入增長基礎廣泛，外匯收入較上一季度增長了 60% 以上。

Leasing business income, mortgage banking and bank card income all increased by double digit percentages and wealth management income posted another record quarter.

租賃業務收入、抵押銀行業務和銀行卡收入均達到兩位數成長，理財業務收入再創歷史新高。

Adjusted expenses increased by 1.2% compared to the first quarter.

調整後費用較第一季成長1.2%。

The increase included a full quarter of Agile expenses, the impact of annual salary adjustments that occurred late in the first quarter and variable compensation tied to our record fee income through our workforce efficiency initiative, we've eliminated 90 full-time positions to date, and this work will continue through the remainder of the year.

這一增長包括整個季度的敏捷支出、第一季末發生的年度薪資調整的影響，以及透過我們的勞動力效率計劃與我們創紀錄的費用收入掛鉤的可變薪酬，迄今為止，我們已經裁減了9​​0個全職職位，這項工作將持續到今年剩餘時間。

I am pleased with the 23 basis points decline in net charge-offs to 15 basis points, which marks the third consecutive quarter that charge-offs have declined.

我對淨沖銷下降 23 個基點至 15 個基點感到高興，這標誌著沖銷連續第三個季度下降。

We did experience some downward credit migration during the period.

在此期間，我們確實經歷了一些信貸下行遷移。

However, this was not concentrated in any particular loan type and non-performing loans as a percentage of total assets was relatively flat compared to the prior quarter.

然而，這並不集中於任何特定的貸款類型，不良貸款佔總資產的百分比與上一季相比相對持平。

Our ACL increased to 1.36% of total loans and based on our outlook for loan growth and credit quality, we would expect provision to decline to levels approximately the first quarter in coming periods.

我們的 ACL 增加至總貸款的 1.36%，根據我們對貸款成長和信貸品質的展望，我們預計撥備將在未來幾個時期下降至第一季左右的水平。

With that, I'll now turn the call over to Jamie to discuss these results in greater detail after Jamie's discussion, I will wrap up with some additional forward-looking commentary and closing remarks.

現在，我將把電話轉給傑米，在傑米討論後更詳細地討論這些結果，最後我將發表一些額外的前瞻性評論和結束語。

Jamie?

傑米？

Thank you, Archie, and good morning, everyone.

謝謝你，阿奇，大家早安。

Slides 4, 5 and 6 provide a summary of our most recent financial results.

投影片 4、5 和 6 總結了我們最近的財務表現。

The second quarter was really strong, highlighted by exceptional earnings, a flat net interest margin, record fee income and solid balance sheet growth.

第二季的業績確實強勁，突出表現是出色的盈利、持平的淨息差、創紀錄的費用收入和穩健的資產負債表增長。

Our net interest margin remains very strong at

我們的淨利差仍然非常強勁

[410].

[410]。

This was unchanged from the linked quarter due to increases in both loan and investment yields, offsetting the pressure on deposit costs.

由於貸款和投資收益率雙雙上升，抵消了存款成本的壓力，這一數字與上一季持平。

We were pleased that the increase in deposit costs moderated in comparison to prior quarters, and we expect this trend to hold.

我們很高興存款成本的成長與前幾季相比有所放緩，我們預計這一趨勢將持續下去。

However, we expect slight margin contraction in the near term, total loans were 11% of an annualized basis, which exceeded our expectations.

然而，我們預計近期利潤率將小幅收縮，貸款總額按年化計算為 11%，超出我們的預期。

Loan growth was broad-based with larger increases in C&I Summit and agile.

貸款成長基礎廣泛，工商業高峰會和敏捷貸款增幅較大。

Average deposit balances increased $350 million or 10.6% on an annualized basis and included a seasonal increase in public funds.

平均存款餘額年化成長 3.5 億美元，即 10.6%，其中包括公共資金的季節性成長。

Overall, the deposit mix continues to shift to higher cost deposits However, we maintain 22% of our total balances in non-interest-bearing accounts and are strategically focused on maintaining deposit balances.

總體而言，存款結構繼續轉向成本較高的存款，但我們仍將總餘額的 22% 保留在無息帳戶中，並在策略上專注於維持存款餘額。

Turning to the income statement, second quarter fee income was the highest in the company's history, foreign exchange and leasing at solid quarters and Wealth Management has our best revenue quarter ever.

談到損益表，第二季的費用收入是公司歷史上最高的，外匯和租賃業務季度表現穩定，財富管理業務擁有我們有史以來最好的收入季度。

Non-interest expenses increased slightly from the linked quarter due to higher variable compensation.

由於可變薪酬增加，非利息支出較上一季略有增加。

However, we are starting to recognize the impact from our efficiency efforts and expect to see further benefits in the coming periods.

然而，我們開始認識到我們的效率努力所產生的影響，並期望在未來一段時間內看到更多的好處。

Our ACL coverage increased seven basis points during the quarter to 1.36% of total loans.

本季我們的 ACL 覆蓋率增加了 7 個基點，佔貸款總額的 1.36%。

This resulted in $16.4 million of provision expense during the period, which was driven by loan growth and slight credit migration.

這導致該期間撥備費用為 1,640 萬美元，這是由貸款增長和輕微信貸遷移推動的。

Overall asset quality trends were mixed, with significantly lower net charge-offs and an increase in classified assets.

整體資產品質趨勢好壞參半，淨沖銷顯著下降，分類資產增加。

Annualized net charge-offs declined 23 basis points during the period and NPAs as a percentage of assets were relatively flat at 35 basis points.

期內年化淨沖銷下降 23 個基點，不良資產佔資產的百分比相對持平，為 35 個基點。

From a capital standpoint, our regulatory ratios are in excess of both internal and regulatory targets tangible book value increased $0.44 or 3.5%, while our tangible common equity ratio was flat during the period.

從資本角度來看，我們的監管比率超過了內部和監管目標，有形帳面價值增加了 0.44 美元或 3.5%，而我們的有形普通股比率在此期間持平。

Additionally, our Board of Directors elected to increase our common dividend during the periods.

此外，我們的董事會選擇在此期間增加我們的普通股利。

We have always been focused on delivering value to our shareholders, and this step is further proof of that commitment.

我們始終致力於為股東創造價值，這項措施進一步證明了這項承諾。

Slide 7 reconciles our GAAP earnings to adjusted earnings, highlighting items that we believe are important to understanding our quarterly performance.

幻燈片 7 將我們的 GAAP 收益與調整後收益進行了調整，突出顯示了我們認為對於了解我們的季度業績非常重要的項目。

Adjusted net income was $61.7 million or $0.65 per share for the quarter adjusted earnings exclude the impact of our efficiency initiative as well as acquisition, severance and branch consolidation costs.

本季度調整後收益調整後淨利潤為 6,170 萬美元，即每股 0.65 美元，不包括我們的效率計劃以及收購、遣散費和分支機構合併成本的影響。

As depicted on slide 8, these adjusted earnings equate to return on average assets of 1.4%, a return on average tangible common equity of 21% and pre-tax, pre-provision [ROA] of 210 basis points.

如投影片 8 所示，這些調整後的收益相當於平均資產報酬率為 1.4%，平均有形普通股報酬率為 21%，稅前撥備前 [ROA] 為 210 個基點。

Turning to slide 9 and 10.

轉到投影片 9 和 10。

Net interest margin was unchanged from the linked quarter at 4.1%.

淨利差與上一季持平，為 4.1%。

Loan yields increased 10 basis points during the period, and the yield on the investment portfolio increased 22 basis points.

期內貸款收益率上升10個基點，投資組合收益率上升22個基點。

The increase in investment yields was driven by higher reinvestment rates as well as the full quarter benefit from the portfolio repositioning we've executed in the first quarter.

投資收益率的成長是由較高的再投資率以及我們在第一季執行的投資組合重新定位帶來的整個季度的收益所推動的。

Funding costs increased 13 basis points during the period, which was significantly lower than in prior periods.

期內融資成本增加13個基點，明顯低於前期。

Our cost of deposits increased 14 basis points compared to the linked quarter.

與上一季相比，我們的存款成本增加了 14 個基點。

However, as you can see on the bottom right chart that pace of growth declined significantly by the end of the quarter.

然而，正如您在右下圖表中看到的那樣，到本季末，成長速度顯著下降。

Slide 11 details the [beta] utilized in our net interest income modeling the increase in deposit costs has moved our current beta two percentage points to 45%, which matches our internal modeling.

投影片 11 詳細介紹了我們在淨利息收入建模中使用的 β，存款成本的增加使我們目前的 β 值提高了兩個百分點，達到 45%，這與我們的內部模型相符。

Going forward, we expect deposit cost increases to be a function of mix.

展望未來，我們預期存款成本的增加將取決於組合。

Slide 12 outlines our various sources of liquidity and borrowing capacity.

投影片 12 概述了我們的各種流動性來源和借貸能力。

We continue to believe we have the flexibility required to manage the balance sheet through the expected economic environment.

我們仍然相信，我們擁有在預期經濟環境下管理資產負債表所需的靈活性。

Slide 14 illustrates our current loan mix and balance changes compared to the linked quarter.

投影片 14 展示了我們目前的貸款組合以及與相關季度相比的餘額變化。

As I mentioned before, loan balances increased 11% on an annualized basis, with growth in almost every portfolio, as you can see on the right, the largest areas of growth for the quarter were in C&I segment and agile.

正如我之前提到的，貸款餘額按年化計算增長了 11%，幾乎每個投資組合都有成長，如右圖所示，本季成長最大的領域是 C&I 領域和敏捷領域。

We expect agile growth to moderate in the coming periods as historically, the second quarter is the strongest quarter for originations.

我們預計未來一段時期的敏捷成長將放緩，因為從歷史上看，第二季度是新創公司最強勁的季度。

Slide 15 provides detail on our loan concentration by industry.

投影片 15 提供了我們按行業劃分的貸款集中度的詳細資訊。

We believe our loan portfolio remains sufficiently diversified to provide protection from deterioration in any particular industry.

我們相信，我們的貸款組合仍然足夠多元化，可以防止任何特定行業的惡化。

Slide 16 provides detail on our office portfolio.

幻燈片 16 提供了我們辦公室組合的詳細資訊。

Similar to last quarter, about 4% of our total loan book is concentrated in office space and the overall portfolio performance metrics remained strong.

與上季類似，我們貸款總額的約 4% 集中在辦公空間，整體投資組合績效指標仍然強勁。

No office relationships were downgraded to classified during the quarter, and our total non-accrual balance for this portfolio remains approximately $17 million.

本季沒有辦公室關係被降級為機密，該投資組合的非應計餘額總額仍約為 1,700 萬美元。

Slide 17 shows our deposit mix as well as the progression of average deposits from the linked quarter.

投影片 17 顯示了我們的存款組合以及相關季度平均存款的進展。

In total, average deposit balances increased $350 million during the quarter driven primarily by a seasonal increase in public funds as well as increases in retail CDs, money market accounts and broker deposits.

總體而言，本季平均存款餘額增加了 3.5 億美元，這主要是由於公共基金的季節性增長以及零售 CD、貨幣市場帳戶和經紀人存款的增加。

These increases offset modest declines in non-interest bearing deposits in these accounts similar to recent quarters, this was expected as the current interest rate environment has driven customers to higher cost deposit products.

這些成長抵消了這些帳戶中無息存款的小幅下降，與最近幾季類似，這是預期的，因為當前的利率環境促使客戶轉向成本更高的存款產品。

Slide 18 illustrates trends in our average personal business and public fund deposits as well as a comparison of our borrowing capacity to our uninsured deposits.

投影片 18 說明了我們的平均個人業務和公共基金存款的趨勢，以及我們的借貸能力與未投保存款的比較。

And on the bottom right of the slide, you can see our adjusted uninsured deposits were $3.2 billion.

在投影片的右下角，您可以看到我們調整後的未保險存款為 32 億美元。

This equates to 23% of our total deposits.

這相當於我們總存款的 23%。

We remain comfortable with this concentration and believe our borrowing capacity provides sufficient flexibility to respond to any event that would stress our larger deposit balances.

我們對這種集中度感到滿意，並相信我們的借貸能力提供了足夠的靈活性，可以應對任何可能給我們更大的存款餘額帶來壓力的事件。

Slide 19 highlights our non-interest income for the quarter.

幻燈片 19 重點介紹了我們本季的非利息收入。

Total fee income increased to $62 million during the quarter, which was the highest quarter in the history of the company.

該季度總費用收入增至 6,200 萬美元，這是該公司歷史上最高的季度。

Beinecke burn and Summit both had solid quarters and Wealth Management posted its best revenue quarter ever.

Beinecke Burn 和 Summit 都實現了穩健的季度業績，而財富管理則公佈了有史以來最好的收入季度。

Additionally, mortgage bank card and deposit service charge income increased from first quarter levels.

此外，抵押銀行卡和存款服務費收入較第一季水準有所成長。

Non-interest expense for the quarter, as outlined on slide 20, core expenses increased a modest $1.4 million during the period.

如投影片 20 所示，本季的非利息支出，核心支出在此期間小幅增加了 140 萬美元。

This was driven by an increase in variable compensation tied to fee income.

這是由於與費用收入相關的可變薪酬增加所致。

The full quarter impact from Agile and annual salary adjustments.

敏捷和年度薪資調整對整個季度的影響。

We have also started to recognize some of the expected benefit from our ongoing efficiency initiatives.

我們也開始認識到我們正在進行的效率措施所帶來的一些預期效益。

Turning now to Slides 21 and 22.

現在轉向投影片 21 和 22。

Our ACL model resulted in a total allowance, which includes both funded and unfunded reserves of $173 million and $16.4 million total provision expense during the period.

我們的 ACL 模型得出了總準備金，其中包括 1.73 億美元的有資金和無資金準備金以及該期間 1,640 萬美元的總撥備費用。

This resulted in an ACL that was 1.36% of total loans, which was a seven basis point increase from the first quarter.

這導致 ACL 佔貸款總額的 1.36%，比第一季增加了 7 個基點。

Provision expense was driven by loan growth and credit migration.

撥備支出是由貸款成長和信貸遷移所推動的。

Net charge-offs declined 23 basis points to 15 basis points and our NPAs to total assets held steady at 35 basis points and other credit trends, classified asset balances increased to 1.07% of total assets and primarily due to the downgrade of four relationships.

淨沖銷下降23 個基點至15 個基點，我們的不良資產佔總資產的比例穩定在35 個基點，根據其他信貸趨勢，分類資產餘額增加至總資產的1.07%，這主要是由於四個關係的評級下調。

These downgrades were not concentrated in any loan or collateral types.

這些降級並不集中在任何貸款或抵押品類型上。

Our ACL coverage increased, and we continue to believe we have model conservatively to build a reserve that reflects the losses we expect from our portfolio.

我們的 ACL 覆蓋範圍有所增加，我們仍然相信我們有保守的模型來建立反映我們預期的投資組合損失的準備金。

We anticipate our ACL coverage will remain relatively flat or increased slightly in future periods as our model responds to changes in the macroeconomic environment.

我們預計，隨著我們的模型對宏觀經濟環境的變化做出反應，我們的 ACL 覆蓋範圍在未來一段時間內將保持相對穩定或略有增加。

Finally, as shown on slides 23, 24 and 25, regulatory capital ratios remain in excess of regulatory minimums and internal targets during the second quarter tangible book value per share increased 3.5% and the TCE ratio was flat due to balance sheet growth.

最後，如投影片 23、24 和 25 所示，監管資本比率仍超過監管最低限度和內部目標，第二季每股有形帳面價值成長 3.5%，而由於資產負債表成長，TCE 比率持平。

Absent the impact from AOCI, the TCE ratio would have been 9.13% compared to 7.23% as reported.

如果沒有 AOCI 的影響，TCE 比率將為 9.13%，而報告的比率為 7.23%。

Slide 24 demonstrates that our capital ratios would remain in excess of regulatory targets including the unrealized losses in the securities portfolio, our total shareholder return remained strong, with 36% of our earnings returned to our shareholders during the period through the common dividend as I mentioned earlier, we were very pleased that the Board elected to increase the common dividend, demonstrating our commitment to provide an attractive return to our shareholders.

第24 張投影片表明，我們的資本比率將繼續超過監管目標，包括證券投資組合中的未實現損失，我們的股東總回報仍然強勁，正如我所提到的，在此期間，我們有36% 的收益透過普通股息返還給股東早些時候，我們非常高興董事會選擇增加普通股股息，這表明我們致力於為股東提供有吸引力的回報。

We will continue to evaluate various capital actions as the year progresses.

隨著時間的推移，我們將繼續評估各種資本行動。

I'll now turn it back over to Archie for some comments on our outlook.

現在我將把它轉回給阿奇，請他對我們的前景發表一些評論。

Archie?

阿奇？

Thank you, Jamie.

謝謝你，傑米。

Before we end our prepared remarks I want to comment on our forward-looking guidance, which can be found on Slide 26.

在結束準備好的發言之前，我想對我們的前瞻性指引發表評論，該指引可在投影片 26 中找到。

Loan pipelines continue to be healthy, though we expect a modest increase in payoff trends and seasonally low production in our agile business unit to contribute to overall loan growth in the low single digits on an annualized basis over the near term.

貸款管道持續保持健康，但我們預期靈活業務部門的回報趨勢將適度成長，且產量季節性較低，這將導致短期內整體貸款年化成長率保持在較低的個位數。

For securities, we expect the portfolio to remain stable.

對於證券，我們預期投資組合將保持穩定。

Deposit growth has been steady and we expect to grow more modestly over the next quarter as seasonal public funds move out.

存款成長一直穩定，隨著季節性公共資金的退出，我們預計下一季存款成長將更為溫和。

Our net interest margin continues to remain strong and resilient, and we expect it to be between 4% and 4.5% for the next quarter.

我們的淨利差持續保持強勁和彈性，我們預計下一季將在 4% 至 4.5% 之間。

This assumes a 25 basis points rate cut by the Fed in September, we expect our credit costs to decline slightly in the back half of the year, while ACL coverage as a percentage of loans is expected to be stable to slightly increasing.

假設聯準會9月降息25個基點，我們預期下半年信貸成本將小幅下降，而ACL覆蓋率佔貸款的比例預計將穩定至小幅上升。

For the full year, we expect net charge-offs to be approximately 25 basis points to 30 basis points.

對於全年，我們預計淨沖銷約為 25 個基點至 30 個基點。

Fee income is expected to be between $58 million to $60 million, which includes $13 million to $15 million for foreign exchange and $16 million to $18 million for the leasing business.

預計手續費收入在5,800萬美元至6,000萬美元之間，其中外匯業務1,300萬美元至1,500萬美元，租賃業務1,600萬美元至1,800萬美元。

Non-interest expense is expected to be between $122 million and $124 million and remains stable excluding the leasing business.

不包括租賃業務，非利息支出預計在 1.22 億美元至 1.24 億美元之間，保持穩定。

Finally, we're pleased to announce that our Board of Directors approved a $0.01 increase to this common dividend to $0.24 for 4.3% dividend increase results in a dividend payout ratio within our target range of 35% to 40% of net income and increases our already attractive yield.

最後，我們很高興地宣布，我們的董事會批准將普通股息增加 0.01 美元至 0.24 美元，股息增加 4.3%，從而使股息支付率在我們淨收入 35% 至 40% 的目標範圍內，並提高我們的已經具有吸引力的收益率。

I'm encouraged with our operating performance through the first half of 2024 and look forward to continued success for the full year.

我對 2024 年上半年的經營業績感到鼓舞，並期待全年繼續取得成功。

We'll now open up the call for questions.

我們現在開始提問。

(Operator Instructions) Chris McGratty, KBW.

（操作員說明）Chris McGratty，KBW。

Good morning.

早安.

Jamie, maybe start with the margin question, obviously outperformed expectations this quarter on your slide show a cumulative beta of [45] on the deposits [70] on alone.

傑米，也許從保證金問題開始，在您的幻燈片上，本季的表現顯然超出了預期，僅存款 [70] 的累積貝塔值為 [45]。

How are you thinking about new if the forward curve plays out.

如果未來曲線出現，你會如何考慮新的事情。

I think I know you have a September cut, but I know the market's yet expecting more next year.

我想我知道你們會在九月降息，但我知道市場對明年的預期仍然更高。

How do we think about margin into next year?

我們如何看待明年的利潤率？

Yeah.

是的。

So obviously, we were asset-sensitive benefited from the increase in rates over the past,you know, six, eight quarters, but on.

顯然，我們對資產敏感，受益於過去六個、八個季度的利率上升，但以後還會繼續。

So when we look at it and we look at rate cuts, you know, we're kind of a methodical 25 basis points rate cuts by the Fed in the first couple.

因此，當我們審視降息時，你知道，聯準會在前幾次降息是有條不紊的 25 個基點。

We think that we're going to have some difficulty reducing deposit costs significantly.

我們認為，大幅降低存款成本將會遇到一些困難。

I mean, we'll get some relief on some of the more rate sensitive categories.

我的意思是，我們將在一些對利率更敏感的類別上得到一些緩解。

So we think that the first cuts are two impacts the margin a little bit more significantly than the ones going forward.

因此，我們認為，第一次削減兩次對利潤率的影響比以後的影響更大。

So the first couple of rate, 25 basis point rate cuts, we think we get about at 89 basis points decline in the margin.

因此，前幾次降息，即降息 25 個基點，我們認為降幅幅度約為 89 個基點。

And then going forward from that, we're going to get like a 5 basis points or 6 basis points decline in the margin in the subsequent cuts.

然後，接下來的降息幅度將下降 5 個基點或 6 個基點。

We just had the first couple of cuts that's going to be difficult to get the full impact on the deposit side.

我們剛剛進行了前幾次削減，這很難對存款方面產生全面影響。

And also, I mean, I would tell you our strategy at this point is that, just given the fact that we've seen on some of that outsized loan growth, the acquisition of agile as well over the past two or three quarters we've been leaning more towards being a little more aggressive on the deposit side and bringing in some bringing in deposit balances and having a and trying to match off that loan growth with that deposit growth, even if it's in the some of the higher cost buckets.

而且，我的意思是，我想告訴你，我們目前的策略是，鑑於我們已經看到一些超額貸款增長，以及過去兩三個季度對敏捷的收購，我們「我們一直傾向於在存款方面更加積極一些，引入一些存款餘額，並試圖將貸款增長與存款增長相匹配，即使是在一些成本較高的領域。

Great.

偉大的。

Thanks for that.

謝謝你。

And Archie, maybe a question on capital.

阿奇，也許是關於資本的問題。

You've got have really good capital generation in your CET1 ratio pretty solid.

你的 CET1 比率非常穩定，並且擁有非常好的資本產生能力。

How are you thinking about using potentially using your excess capital and your model into '25?

您如何考慮將您的多餘資本和模型用於 25 年？

Yeah, Chris.

是的，克里斯。

So primarily, I'd say funding the company's growth internally would be first and foremost, certainly, we just did the dividend increase, but it's those kind of things.

因此，我想說，首先是為公司的內部成長提供資金，當然，我們只是增加了股息，但就是這樣的事情。

I don't think we see a buyback in the near term.

我認為我們短期內不會看到回購。

And part of this is we're focused on growing our tangible value and you increase

其中一部分是我們專注於增加我們的有形價值，並且您可以增加

.

。

And in terms of traditional bank M&A versus a fee income deal.

就傳統銀行併購與費用收入交易而言。

Are you seeing I think it does a deal this morning.

你看到了嗎，我認為今天早上成交了。

Are you seeing more opportunities to grow that way as well?

您是否也看到了更多這樣的成長機會？

Yeah, Chris, on the list, maybe talk about bank M&A first, on some conversations happening early stages, I don't see anything in the near term that would come.

是的，克里斯，在名單上，也許首先談論銀行併購，在早期階段發生的一些對話中，我認為短期內不會發生任何事情。

But deal, I think there's little bit more interest in discussion just because of where we are in the cycle.

但是，我認為，僅僅因為我們處於週期中的位置，人們對討論的興趣就更大了。

And I think especially with the expectations that rates start to come down and maybe we're approaching a soft landing on the non-bank side.

我認為，尤其是考慮到利率開始下降的預期，也許我們正在接近非銀行方面的軟著陸。

I don't really think we're pursuing any other acquisitions at this time.

我真的不認為我們目前正在尋求任何其他收購。

Okay.

好的。

And then finally, could you just remind us your parameters when you look at it even 10 months in the main are still five or six years.

最後，您能否提醒我們您的參數，即使 10 個月主要仍然是五到六年。

And I think, well, I mean, that can change over time.

我認為，嗯，我的意思是，這可能會隨著時間的推移而改變。

It certainly tell you deposit franchises are a lot more important today than they would have been several years ago.

這無疑告訴您存款特許經營權今天比幾年前重要得多。

But we like end markets, we like more density areas, markets, more metro, kind of focus areas in our footprint or I would say adjacent to our footprint.

但我們喜歡終端市場，我們喜歡更高密度的區域、市場、更多的地鐵、我們足跡中的重點區域，或者我想說的是靠近我們足跡的區域。

Great.

偉大的。

Thank you.

謝謝。

Terry McEvoy, Stephens Inc.

特里·麥克沃伊，史蒂芬斯公司

Thanks.

謝謝。

Good morning, everybody.

大家早安。

And maybe Jamie question for you.

也許傑米要問你一個問題。

Just back on the margin, you said kind of sensitivity to the deposit mix over the near term.

回到邊際，您提到了短期內對存款組合的敏感度。

I'm just wondering what your thoughts are the bearing balances over the course of the year and maybe any early insight into the third quarter?

我只是想知道您對這一年的軸承平衡有何看法，也許對第三季有什麼初步了解？

And do you fund the loan growth with higher costing deposits?

您是否使用成本較高的存款來為貸款成長提供資金？

Yeah, I think I mean, if you look at the chart in the deck in terms of deposit costs, I mean, we really started to see some that the pressure on deposit costs subside significantly in the last couple of months of the quarter, solid -- maybe two or three basis points in those months.

是的，我想我的意思是，如果你看一下存款成本方面的圖表，我的意思是，我們確實開始看到一些存款成本的壓力在本季度的最後幾個月顯著減輕，這是可靠的——那幾個月可能有兩個或三個基點。

So we're really starting to see it both from a cost perspective, and and the momentum that we were seeing from a mix shift, both of those subside pretty significantly.

因此，我們確實開始從成本角度以及我們從混合轉變中看到的勢頭來看，這兩者都顯著減弱。

So we think we are at or near the bottom in terms of non-interest bearing balances and especially the percentage of non-interest-bearing to total deposits somewhere in that low.

因此，我們認為，就無息餘額而言，尤其是無息存款佔總存款的百分比而言，我們處於或接近底部。

We are projecting that those were going to on drops somewhere in the low 20%s, and we're at 22% now.

我們預計這些數字將會下降到 20% 以下，而現在是 22%。

So I think on that, we've hit the bottom there or close to it on.

所以我認為，我們已經觸底或接近底部。

But going forward, yes, I mean, we are looking to have and you can see in the outlook our deposit for the back half of the year, our loan, our loan growth projections are softened from what we were seeing in the first half, which were relatively strong.

但展望未來，是的，我的意思是，我們希望，你可以在展望中看到我們下半年的存款、我們的貸款、我們的貸款成長預測比我們上半年看到的要軟化，相對較強。

So we are looking to fund that growth going forward here, especially over the next two, three quarters from on from the deposit side and not the borrowing side by the understanding that some of that might be the mix of that might be a little bit on the higher cost side and CDs and money market accounts.

因此，我們希望從存款方而不是藉款方為未來的成長提供資金，特別是在接下來的兩個、三個季度，因為我們知道其中一些可能是混合的。貨幣市場帳戶。

Perfect.

完美的。

Thanks for that, Jamie.

謝謝你，傑米。

And a follow-up on just the transportation sector keeps coming up this earning season when discussing credit.

在討論信貸時，本財報季不斷出現有關交通運輸業的後續行動。

Any comments on your transportation C&I portfolio are or within some and whether you're seeing any stress there, just taking a step back, any segments within C&I are monitoring and keeping a close eye on?

對您的交通 C&I 投資組合有任何評論嗎？

Yes.

是的。

We are watching the transportation sector very closely, as most of our most banks are just some of the challenges that they've been facing here too for, you know, we haven't had any material issues.

我們正在非常密切地關注運輸部門，因為我們大多數銀行都只是他們在這裡面臨的一些挑戰，因為我們沒有遇到任何重大問題。

And overall, we feel pretty good about the book, but there is some stress, especially in some of the smaller and some of the larger trucking companies out there.

總的來說，我們對這本書感覺很好，但也存在一些壓力，特別是在一些較小和一些較大的貨運公司中。

But our exposure is manageable.

但我們的風險是可控的。

Thanks for taking my question.

感謝您提出我的問題。

Thanks, Terry.

謝謝，特里。

Daniel Tamayo, Raymond James.

丹尼爾·塔馬約，雷蒙德·詹姆斯。

Hey, good morning.

嘿，早安。

Guys, (inaudible) questions?

夥計們，（聽不清楚）有問題嗎？

I know you talked a little bit about this, and I apologize if this question has been asked, I jumped on late, but the loan growth guidance down, you already mentioned seasonally strong agile in the second quarter.

我知道您對此進行了一些討論，如果有人問這個問題，我深表歉意，我遲到了，但貸款增長指導下降了，您已經提到了第二季度的季節性強勁敏捷。

So I get that part.

所以我明白了那部分。

But anything else that's driving that?

但還有其他因素在推動這股趨勢嗎？

I mean, is it more of a normalization?

我的意思是，這更像是一種正常化嗎？

I'm just curious kind of, I guess, on the commercial side and how pipelines look and work, how we should think about on loan growth over the next several quarters as the official guidance but can you take a step back and think about them opportunities for you might be over the next several quarters would be helpful.

我想，我只是好奇商業方面的情況，管道的外觀和運作方式，我們應該如何考慮未來幾個季度的貸款增長作為官方指導，但你能退一步思考一下嗎未來幾個季度的機會對你可能會有幫助。

Hi Dan.

嗨丹。

This is Archie.

這是阿奇。

We had just a couple of really strong quarters and loan growth.

我們只有幾個非常強勁的季度和貸款成長。

And it's been a combination of some decent production, but also of much lower than normal payoff activity, especially in our commercial real estate portfolio.

這是一些不錯的生產的結合，但回報活動也遠低於正常水平，尤其是在我們的商業房地產投資組合中。

So that's buoyed at some.

所以這對某些人來說是鼓舞的。

As we look forward up pipelines, I would say soften some in the mid-part of the second quarter.

當我們展望管道時，我想說第二季中期會有所軟化。

They seem to be strengthening back now, but that will create a little bit of building that back into production in the back half.

他們現在似乎正在加強，但這將為後半場的生產創造一些建設。

So that's a piece we mentioned agile.

這就是我們提到的敏捷。

Will there be a bigger part of the years, the early to mid parts that'll flatten out for most of the back half of the year.

今年的大部分時間，早中期的情況是否會在下半年的大部分時間趨於平緩。

And we are anticipating more payoffs of commercial real estate we're starting to see we start to see some late in the quarter.

我們預計商業房地產會帶來更多回報，我們將在本季結束時開始看到一些回報。

We'll see more Q3, our [Oak Street] unit.

我們將看到更多 Q3，我們的 [Oak Street] 單位。

We've got a few large payoffs that we're expecting to come in the back half of the year.

我們預計將在今年下半年獲得一些巨額回報。

So that payoff activity just a little bit stronger combined with Agile.

因此，與敏捷結合，回報活動會更強一些。

And I would say on the CRE side, still that production is a little bit lower than it has typically been.

我想說的是，在商業房地產方面，產量仍然比平常低。

And you can imagine just of the market with rates where they are the market's a little softer and we're probably a little bit lower.

你可以想像一下市場的利率，市場稍微疲軟，而我們的利率可能稍微低一些。

I'm more selective there in the current environment.

在目前的環境下我會更有選擇性。

Okay.

好的。

Thanks, Archie.

謝謝，阿奇。

And then maybe on the expense side, you guys have done a really good job managing expenses despite this good revenue growth and balance sheet growth, I'm just curious where you've been able to pull out the STE.s or identify cost-savings opportunities in this environment and no, as you've been going through that.

然後也許在費用方面，儘管收入增長和資產負債表增長良好，但你們在管理費用方面做得非常好，我只是好奇你們在哪裡能夠提取 STE.s 或確定成本-在這種環境下有節省的機會，但不，正如您所經歷的那樣。

Just curious how that's been going.

只是好奇事情進展如何。

If you've had any issues, Martin identified, any kind of areas that you need to invest as you think about continued growth over the next few years?

馬丁指出，如果您遇到任何問題，在考慮未來幾年的持續成長時需要投資哪些領域？

Yeah, Daniel.

是的，丹尼爾。

We've talked a little bit about this in both quarters.

我們在兩個季度都對此進行了一些討論。

So it's a very good question for us.

所以這對我們來說是一個非常好的問題。

To talk a bit more about it.

多談一點。

First, we view this as a good expense control and management is part of what we need to always be doing, but if you think about what's happened in recent years of the industry, but certainly us have invested heavily in great technologies and tools and we believe have created a significant amount of capacity in the system.

首先，我們認為良好的費用控制和管理是我們需要一直做的事情的一部分，但如果你想想近年來該行業發生的事情，但我們肯定在偉大的技術和工具上投入了大量資金，而且我們相信已經在系統中創造了大量的容量。

So we embarked we did some late last year, some I guess I call them beta testing and in an area or two to really do kind of we call it up almost like just desk to desk review of all our production areas and support areas.

因此，我們在去年年底開始做了一些工作，我想我稱之為beta 測試，並在一個或兩個領域真正做一些事情，我們稱之為幾乎就像對我們所有生產領域和支援領域進行逐桌審查一樣。

We started in a group or to kind of a proof of concept on what we are trying to do and we identified excess capacity and that we could take out of the system.

我們以小組形式開始，或對我們正在嘗試做的事情進行概念驗證，並確定了過剩的產能以及我們可以從系統中剔除的產能。

And now we're going through a methodical review throughout the whole company has more been in the support areas at this point.

現在，我們正在對整個公司進行系統性審查，此時更多的是在支援領域。

But before we're done, which we hope will be through this work by the end of the year, we'll have touched all or most of the company.

但在我們完成之前（我們希望在今年年底之前完成這項工作），我們將觸及公司的全部或大部分。

To date, we're about 35% to 40% through the work.

到目前為止，我們的工作已完成約 35% 到 40%。

And I'm not sure that the same numbers will hold up through the rest of the process because we'll get into some areas that we think don't have as much capacity, but we're going to keep doing that work and each quarter as we go through it.

我不確定相同的數字是否會在整個過程的其餘部分中保持不變，因為我們將進入一些我們認為沒有那麼多能力的領域，但我們將繼續做這項工作，每個領域當我們經歷它的時候。

We'll update to you, certainly all and all of the other stakeholders on the progress that we're making.

我們將向您（當然還有所有其他利害關係人）通報我們正在取得的進展的最新情況。

And Danny just to jump in as well this is Jamie I mean what that has also allowed us to do is we were able to essentially absorb the expenses with agile through that and the expense base didn't go up a lot and also use those savings to invest in other areas that will help us grow in the future.

丹尼（Danny）也插話，這是傑米（Jamie），我的意思是，這也讓我們能夠做的是，我們能夠通過敏捷基本上吸收費用，並且費用基礎沒有增加很多，並且還使用了這些節省的費用投資於其他有助於我們未來發展的領域。

(multiple speakers) Jamie's point, we have opened a couple of offices, commercial banking offices added a few other salespeople in our wealth group and up, you have been able to keep a lid on the expenses.

（多個演講者）傑米的觀點是，我們開設了幾個辦事處，商業銀行辦事處在我們的財富團隊中增加了一些其他銷售人員，您已經能夠控制開支。

Yeah, nice certainly showing through.

是的，很好，確實表現出來了。

So I appreciate all that color.

所以我很欣賞所有這些顏色。

Thanks.

謝謝。

Thanks, Danny.

謝謝，丹尼。

(Operator Instructions) Jon Arfstrom, RBC.

（操作員說明）Jon Arfstrom，RBC。

Good morning, guys.

早安，夥計們。

On Chris McGratty question about the margin coming down.

關於克里斯·麥克格拉蒂關於利潤率下降的問題。

If rates come down, can you.

如果利率下降，你可以嗎？

Can you talk about how you expect the fee businesses to perform?

您能談談您對收費業務的預期表現如何嗎？

If short rates come down?

如果短期利率下降？

Do you think that will have any kind of an impact on maybe some improvement there?

您認為這會對那裡的某些改進產生任何影響嗎？

John.

約翰.

Yes, maybe slightly up.

是的，也許略有上升。

We think Bennett Bernd has shown in multiple [radio-pharmacies] pointed they can generate to income with their clients.

我們認為貝內特·貝恩德（Bennett Bernd）在多家[無線電藥房]中表明他們可以與客戶一起創造收入。

So we think they'll continue to perform effectively on leasing volumes are strong.

因此，我們認為，由於租賃量強勁，他們將繼續表現有效。

We'll continue to see the leasing income side grow, I think, and even at a different rate environment, maybe even more.

我認為，我們將繼續看到租賃收入成長，即使在不同的利率環境下，也可能會成長更多。

And then on the mortgage side, it's really going to depend on probably what happens more in the 10-year part of the curve, but we would expect a little bit of increase maybe on the mortgage side of the market hold up.

然後在抵押貸款方面，這實際上可能更多地取決於曲線的 10 年期部分會發生什麼，但我們預計市場的抵押貸款方面可能會出現一點增長。

Wealth is going to continue.

財富將會持續。

We put a lot of it investment in our wealth group, and we think they're going to continue to just incrementally make improvements as we go forward.

我們將大量投資投入到我們的財富團隊中，我們認為隨著我們的前進，他們將繼續逐步做出改進。

So those are the big areas.

這些都是大領域。

Okay.

好的。

You touched on leasing, it's obviously been very strong.

你談到了租賃，它顯然非常強勁。

It feels like it's a little bit different than the commercial network.

感覺和商業網絡有點不一樣。

Can you just talk a little bit about the pipelines that are seeing and what you're seeing there?

您能簡單談談您所看到的管道以及您在那裡看到的情況嗎？

Is it market activity or market share or what does it?

是市場活動、市場佔有率還是什麼？

Well, there are there are more of a national platform and data salespeople throughout the country and other connections of how they do business.

好吧，全國各地有更多的全國性平台和數據銷售人員以及他們如何開展業務的其他聯繫。

So we do get a lens into maybe things more broadly.

所以我們確實可以更廣泛地審視事物。

And things are pretty healthy, especially in, I would say, larger, companies, and they tend to do a lot of business, a larger company so pipelines are good.

一切都非常健康，尤其是在規模較大的公司中，他們往往會做很多業務，規模較大的公司因此通路很好。

If anything, we're probably restraining our the ability to originate there a little bit in the environment where we're focused more on funding.

如果有什麼不同的話，那就是在我們更注重資金的環境中，我們可能會限制我們在那裡發起的能力。

We do also, if you just look back last year and we've had a couple of years now with them, they will see their strongest amount of origination activity occurs in the back part of the year.

我們也這麼做，如果你回顧去年，我們已經和他們合作了幾年，他們會看到最強勁的發起活動發生在今年下半年。

Especially in that fourth quarter.

尤其是在第四季。

So that will pick up.

這樣就會好起來。

That'll I think we said low single digit growth in the near term.

我認為我們說過近期的低個位數成長。

I'm not sure what fourth quarter looks like, but they'll certainly have a strong fourth quarter.

我不確定第四季會是什麼樣，但他們肯定會有一個強勁的第四季。

Okay.

好的。

That helps.

這有幫助。

And then, Bill, can you just talk a little bit more about downgrades and we probably know what the themes are, but any themes and then should we expect the classified increases to continue for the next few quarters?

然後，比爾，你能多談談降級的問題嗎？

Thanks.

謝謝。

And so the downward credit migration of the classified bucket was driven by two multifamily and two C&I credits.

因此，分類類別的信貸向下遷移是由兩個多戶家庭信貸和兩個工商業信貸推動的。

First, multi-family deals currently under LOI.

首先，目前正在進行意向書的多戶住宅交易。

The other experience has experienced conversion and stabilization delays.

另一種體驗經歷了轉換和穩定延遲。

Now the two C&I credits business are both long-time customers, 20 plus years that are just navigating through some shifts in the respective markets, and we think there's reasonable solutions for all of them.

現在，這兩家 C&I 信貸業務都是長期客戶，20 多年來，他們剛剛經歷了各自市場的一些轉變，我們認為所有這些都有合理的解決方案。

And as we look out, we do expect our classifieds remain stable.

從我們的觀察來看，我們確實希望我們的分類廣告保持穩定。

Looking at our special mentions for the quarter, they were down a little flat.

看看我們本季的特別提及，它們略有下降。

And so that's kind of what we're looking at this point.

這就是我們目前正在關注的問題。

Feel kind of safe.

感覺有點安全。

All right.

好的。

Okay.

好的。

Thanks, guys.

謝謝，夥計們。

Appreciate it.

欣賞它。

Thanks, John.

謝謝，約翰。

There are no further questions at this time.

目前沒有其他問題。

I would like to turn the call back over to Archie Brown for some closing remarks.

我想將電話轉回給阿奇·布朗，讓其發表一些結束語。

I want to thank you for joining today and hearing our story for the quarter, and we look forward to talking with you again next quarter.

我要感謝您今天加入並聆聽我們本季的故事，我們期待下個季度再次與您交談。

Have a great Friday and good weekend. bye now.

祝你星期五和週末愉快。再見了。

This concludes today's conference call.

今天的電話會議到此結束。

You may now disconnect and have a good day.

您現在可以斷開連接並度過美好的一天。