First Financial Bancorp (FFBC) 2025 Q3 法說會逐字稿

(Operator Instructions)

（操作說明）

Thank you for standing by and welcome to the First Financial Bancorp Third Quarter 2025 Earnings Conference Call and Webcast. Thank you. I would now like to turn the call over to Scott Crawley. You may begin.

感謝您的耐心等待，歡迎參加第一金融銀行2025年第三季財報電話會議和網路直播。謝謝。現在我將把電話交給史考特·克勞利。你可以開始了。

Thank you, Rob. Good morning, everyone, and thank you for joining us on today’s conference call to discuss First Financial Bancorp’s third quarter and year-to-date financial results. 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. Both the press release we issued yesterday, and the accompanying slide presentation are available on our website at www.bankandfirst.com under the Investor Relations section. We will make reference to the slides contained in the accompanying presentation during today’s call. Additionally, please refer to the forward-looking statement disclosure contained in the Third Quarter 2025 Earnings Release, as well as our SEC filings for a full discussion of the company’s risk factors. The information we will provide today is accurate as of September 30, 2025, and we will not be updating any forward-looking statements to reflect facts or circumstances after this call.

謝謝你，羅布。各位早安，感謝各位參加今天的電話會議，討論第一金融銀行第三季度和年初至今的財務業績。參加今天電話會議的有總裁兼執行長 Archie Brown、財務長 Jamie Anderson 和首席信貸長 Bill Harrod。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.bankandfirst.com 的「投資者關係」部分找到。我們將在今天的電話會議中參考隨附簡報中的幻燈片。此外，請參閱 2025 年第三季財報中的前瞻性聲明揭露，以及我們向美國證券交易委員會提交的文件，以全面討論本公司的風險因素。我們今天提供的資訊截至 2025 年 9 月 30 日均為準確信息，本次電話會議後，我們將不會更新任何前瞻性聲明以反映事實或情況。

Thanks, Scott. Good morning, everyone, and thank you for joining us on today’s call. Yesterday afternoon, we announced our financial results for the third quarter. The third quarter 2025 was another outstanding quarter for First Financial Bancorp. Adjusted net income was $72.6 million, and adjusted earnings per share were $0.76, which resulted in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3%. We achieved record revenue in the third quarter, driven by a robust net interest margin and record non-interest income. We have successfully maintained asset yields while moderating our funding costs, which combined to result in an industry-leading net interest margin. In addition, our diverse income streams remained a positive differentiator for us, with our adjusted non-interest income representing 31% of total net revenue for the quarter. Expenses continue to be well managed.

謝謝你，斯科特。各位早安，感謝各位參加今天的電話會議。昨天下午，我們公佈了第三季的財務表現。2025年第三季對於第一金融銀行來說又是出色的一個季度。調整後的淨收入為 7,260 萬美元，經調整後的每股收益為 0.76 美元，由此得出經調整後的資產回報率為 1.55%，經調整後的有形普通股權益回報率為 19.3%。第三季度，我們實現了創紀錄的收入，這主要得益於強勁的淨利差和創紀錄的非利息收入。我們成功地在控制融資成本的同時維持了資產收益率，從而實現了行業領先的淨利差。此外，我們多元化的收入來源仍然是我們的一項正面優勢，經調整後的非利息收入佔本季總淨收入的 31%。各項開支繼續有效控制。

Excluding incentives tied to strong performance and the record fee income; total non-interest expenses were flat compared to the second quarter. Our workforce efficiency efforts continued during the period, and to date, we have successfully reduced our total time equivalence by approximately 209% since we began the initiative two years ago. We expect further efficiencies subsequent to the integration of our pending acquisitions. Loan balances declined modestly during the quarter, falling short of our expectations. Lower production in our specialty businesses, along with a greater percentage of construction originations, which fund over time, drove the modest decline. Loan pipelines are very healthy as we enter the fourth quarter, and we expect to return to mid-single-digit loan growth to close out the year. Asset quality metrics were stable for the third quarter.

剔除與強勁業績和創紀錄的費用收入相關的激勵措施；非利息支出總額與第二季持平。在此期間，我們繼續努力提高員工效率，迄今為止，自兩年前啟動該計劃以來，我們已成功將總工時減少了約 209%。我們預計，在完成待完成的收購後，效率將進一步提高。本季貸款餘額略有下降，低於我們的預期。專業業務產量下降，加上建築項目貸款比例較高（這些貸款需要時間累積資金），導致了小幅下滑。進入第四季度，貸款業務進展非常順利，我們預計到年底貸款成長率將恢復到個位數中段水準。第三季資產品質指標維持穩定。

non-performing assets were flat as a percent of assets, and annualized net charge-offs were 18 basis points, which was a slight improvement from the linked quarter. We are very happy that our strong earnings led to continued growth in tangible book value per share and tangible common equity during the quarter. Tangible book value per share of $16.19 increased 5% from the linked quarter and 14% from a year ago, while tangible common equity increased forty-seven basis points from June 30 to 8.87% at the end of September. I will now turn the call over to Jamie to discuss these results in greater detail, and after Jamie is done, I will wrap up with some additional forward-looking commentary and closing remarks. Jamie.

不良資產佔總資產的百分比持平，年化淨沖銷額為 18 個基點，較上一季略有改善。我們非常高興，強勁的獲利能力帶動了本季每股有形帳面價值和有形普通股權益的持續成長。每股有形帳面價值為 16.19 美元，較上一季成長 5%，較去年同期成長 14%；而截至 9 月底，有形普通股權益較 6 月 30 日成長 47 個基點，達到 8.87%。現在我將把電話交給傑米，讓他更詳細地討論這些結果。傑米說完後，我將做一些展望未來的評論和總結發言。傑米。

Thank you, Archie, and good morning, everyone. Slides four, five, and six provide a summary of our most recent financial results. The third quarter was another exceptional quarter with outstanding earnings, robust net interest margin, and record fee income. Our net interest margin remains very strong at 4.02%. Asset yields declined slightly, while we managed deposit costs to a modest increase. Loan balances declined slightly during the quarter as production slowed in our specialty lending areas and slower funding construction originations increased as a percentage of the portfolio. Average deposit balances increased $157 million due to higher broker deposits and money markets, offset by a seasonal decline in public funds. We maintain 21% of our total balances in non-interest-bearing accounts and remain focused on growing lower-cost deposit balances. Turning to the income statement, third quarter fee income was another record, led by our leasing and foreign exchange businesses.

謝謝你，Archie，大家早安。第四、五、六張投影片概述了我們最新的財務表現。第三季又是表現卓越的季度，獲利能力出色，淨利差強勁，手續費收入創歷史新高。我們的淨利差依然非常強勁，達到 4.02%。資產收益率略有下降，同時我們將存款成本控制在適度增長範圍內。本季貸款餘額略有下降，原因是我們在專業貸款領域的生產放緩，以及融資速度放緩的建築貸款發放量佔投資組合的比例上升。由於經紀商存款和貨幣市場資金增加，平均存款餘額增加了 1.57 億美元，但公共資金的季節性下降抵消了這一增長。我們將總餘額的 21% 維持在不計息帳戶中，並繼續專注於增加低成本存款餘額。從損益表來看，第三季手續費收入再次創下紀錄，主要得益於我們的租賃和外匯業務。

Additionally, we had higher syndication fees and income on other investments. Non-interest expenses increased from the linked quarter due to an increase in incentive compensation, which is tied to fee income. Our efficiency initiatives continue to impact our results positively and remain ongoing. Our ACL coverage increased slightly during the quarter to 1.38% of total loans. We recorded $9.1 million of provision expense during the period, which was driven by net charge-offs. Overall, asset quality trends were in line with expectations, with lower net charge-offs and non-performing asset balances remaining flat. Net charge-offs were eighteen basis points on an annualized basis, while NPAs and classified assets were both relatively flat for the period. From a capital standpoint, our ratios are in excess of both internal and regulatory targets. Tangible book value increased $0.79 to $16.19, while our tangible common equity ratio increased forty-seven basis points to 8.87%.

此外，我們的投資佣金和其他投資收益也更高。由於與手續費收入掛鉤的激勵性薪酬增加，非利息支出較上一季增加。我們的效率提升措施持續對業績產生正面影響，並將持續推進。本季我們的 ACL 覆蓋率略有上升，達到貸款總額的 1.38%。本期我們提列了 910 萬美元的準備金支出，這是由於淨沖銷造成的。整體而言，資產品質趨勢符合預期，淨沖銷額降低，不良資產餘額維持穩定。以年化計算，淨沖銷率為 18 個基點，而不良資產和分類資產在此期間均保持相對穩定。從資本角度來看，我們的各項比率均超過了內部目標和監管目標。有形帳面價值增加 0.79 美元至 16.19 美元，而我們有形的普通股權益比率增加了 47 個基點至 8.87%。

Slide seven reconciles our GAAP earnings to adjusted earnings, highlighting items that we believe are important to understanding our quarterly performance. Adjusted net income was $72.6 million or $0.76 per share for the quarter. Non-interest income was adjusted for a small loss on the sale of investment securities, while non-interest expense adjustments exclude the impact of acquisition and efficiency costs, tax credit investment write-downs, and other expenses not expected to recur. As depicted on slide eight, these adjusted earnings equate to a return on average assets of 1.55%, a return on average common equity of 19%, and a pre-tax pre-provision ROA of 2.15%. Turning to slides nine and ten, net interest margin decreased three basis points from the linked quarter to 4.02%. Asset yields declined two basis points from the prior quarter, while total funding costs increased one basis point.

第七張投影片將我們的 GAAP 收益與調整後收益進行了核對，重點突出了我們認為對理解我們季度業績至關重要的項目。本季調整後淨收入為 7,260 萬美元，即每股 0.76 美元。非利息收入已根據出售投資證券的小額損失進行了調整，而非利息支出調整則不包括收購和效率成本、稅收抵免投資減值以及其他預計不會再次發生的支出的影響。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 1.55%，平均普通股報酬率 19%，稅前撥備前資產報酬率 2.15%。翻到第九張和第十張投影片，淨利差較上一季下降了3個基點，至4.02%。資產收益率較上一季下降2個基點，而總融資成本上升1個基點。

Slide 12 illustrates our current loan mix and balance changes compared to the linked quarter. Loan balances decreased $72 million during the period. As you can see on the right, the decline was driven by decreases in the Oak Street, ICRE, and CNI portfolios, which outpaced growth in Summit and Consumer. Slide fourteen shows our deposit mix as well as a progression of average deposits from the linked quarter. In total, average deposit balances increased $157 million during the quarter, driven primarily by a $166 million increase in brokered CDs and a $106 million increase in money market accounts. These increases were offset by a seasonal decline in public funds. Slide sixteen highlights our non-interest income for the quarter. Total fee income increased to $73.6 million during the quarter, which was the highest quarter in the history of the company. Bannockburn and Summit both had solid quarters.

第 12 張投影片展示了我們目前的貸款組合和餘額變化與上一季相比的變化。在此期間，貸款餘額減少了7,200萬美元。如右圖所示，此次下跌是由 Oak Street、ICRE 和 CNI 投資組合的減少所致，這些投資組合的成長速度超過了 Summit 和 Consumer 的成長速度。第十四張投影片展示了我們的存款結構以及上一季平均存款額的變化。本季平均存款餘額總計增加了 1.57 億美元，主要原因是經紀存單增加了 1.66 億美元，貨幣市場帳戶增加了 1.06 億美元。這些增長被公共資金的季節性下降所抵消。第十六張投影片重點介紹了我們本季的非利息收入。本季總費用收入增至 7,360 萬美元，創下公司歷史最高季度紀錄。班諾克本和薩米特兩隊都取得了不錯的成績。

Additionally, other non-interest income increased $2.8 million for the quarter due to higher syndication fees and elevated income on other investments. Non-interest expense for the quarter is outlined on slide seventeen. Core expenses increased $5.7 million during the period. This was driven by higher incentive compensation related to fee income and the overall strong performance by the company. Turning now to slides 18 and 19, our ACL model resulted in a total allowance, which includes both funded and unfunded reserves of $180 million and $9.1 million of total provision expense during the period. This resulted in an ACL that was 1.38% of total loans, which was a four-basis point increase from the second quarter. Provision expense was primarily driven by net charge-offs, which were eighteen basis points for the period.

此外，由於銀團貸款費用增加以及其他投資收益上升，本季其他非利息收入增加了 280 萬美元。本季非利息支出列於第十七頁。本期核心支出增加了570萬美元。這主要得益於與手續費收入相關的更高激勵性薪酬以及公司整體強勁的業績。現在來看看第 18 和 19 張投影片，我們的 ACL 模型得出的總準備金為 1.8 億美元，其中包括已撥備和未撥備的儲備金，以及該期間的總撥備支出 910 萬美元。這使得 ACL 佔貸款總額的 1.38%，比第二季增加了 4 個基點。撥備支出主要由淨沖銷引起，該期間淨沖銷額為 18 個基點。

Additionally, our NPAs to total assets held steady at 41 basis points, and classified asset balances totalled 1.18% of total assets. We continue to believe that we have modelled conservatively to build a reserve that reflects the losses we expect from our portfolio. We anticipate our ACL coverage will remain relatively flat in future periods as our model responds to changes in the macroeconomic environment. Finally, as shown on slides 20 and 21, capital ratios remain in excess of regulatory minimums and internal targets. During the third quarter, tangible book value increased to $16.19, while the TCE ratio increased forty-seven basis points to 8.87%. Our total shareholder return remains strong, with 33% of our earnings returned to our shareholders during the period through the common dividend. We maintain our commitment to provide an attractive return to our shareholders, and we continue to evaluate capital actions that support that commitment.

此外，我們的不良資產佔總資產的比例穩定在 41 個基點，分類資產餘額佔總資產的 1.18%。我們仍然認為，我們已經採取了保守的建模方法，所建立的儲備金能夠反映我們預期投資組合的損失。我們預計，隨著我們的模型對宏觀經濟環境變化做出反應，未來一段時間內，我們的 ACL 覆蓋率將保持相對穩定。最後，如投影片 20 和 21 所示，資本比率仍然超過監管最低標準和內部目標。第三季度，有形帳面價值增至 16.19 美元，而 TCE 比率上升 47 個基點至 8.87%。我們的股東總回報依然強勁，在此期間，我們透過普通股股息將 33% 的收益返還給了股東。我們始終致力於為股東提供可觀的回報，並將繼續評估有助於實現這項承諾的資本行動。

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

現在我將把發言權交還給阿奇，讓他對我們的前景發表一些看法。阿奇。

Thank you, Jamie. Before we conclude our prepared remarks, I want to comment on our outlook for the fourth quarter, which can be found on slide twenty-two. As we close the year, we expect origination volumes to increase, which should accelerate our growth. Specific to the fourth quarter, excluding Westfield, we expect loan growth to be in the mid-single digits on an annualized basis. We expect the core deposit balances to increase and combine with seasonal public fund inflows to result in strong deposit growth. Our net interest margin remains among the highest in the peer group, and we expect it to be in a range between 3.92% and 3.97% over the next quarter, assuming a 25-basis point rate cut in both October and December. This includes a modest bump in margin from the addition of Westfield in early November.

謝謝你，傑米。在我們結束準備好的演講之前，我想談談我們對第四季度的展望，這部分內容可以在第二十二頁幻燈片中找到。隨著年底臨近，我們預計貸款發放量將會增加，這將加速我們的成長。具體到第四季度，不包括 Westfield，我們預期貸款年化成長率將達到個位數中段。我們預計核心存款餘額將會增加，加上季節性公共資金流入，將導致存款強勁成長。我們的淨利差仍然在同業中處於最高水準之列，我們預計下一季淨利差將在 3.92% 至 3.97% 之間，假設 10 月和 12 月利率均下調 25 個基點。這其中包括11月初收購Westfield後利潤率的小幅成長。

We expect our fourth quarter credit costs to approximate third quarter levels and ACL coverage to remain stable as a percent of loans. We are estimating fee income to be between $77 million and $79 million, which includes $18 million to $20 million for foreign exchange and $21 million to $23 million for the leasing business revenue. This range includes the expected impact from Westfield. Non-interest expense is expected to be between $142 million and $144 million and reflect our continued focus on expense management. This range includes the impact from Westfield, which is expected to be approximately $8 million for the months of November and December. While we remain confident that we will realize our modelled cost savings, we expect the majority of those savings to materialize in the middle of 2026 once Westfield has been fully integrated.

我們預計第四季度信貸成本將與第三季水準大致相同，ACL 覆蓋率佔貸款的比例將保持穩定。我們預計手續費收入在 7,700 萬美元至 7,900 萬美元之間，其中包括 1,800 萬美元至 2,000 萬美元的外匯收入和 2,100 萬美元至 2,300 萬美元的租賃業務收入。此範圍包含了Westfield預期帶來的影響。預計非利息支出將在 1.42 億美元至 1.44 億美元之間，這反映了我們對費用管理的持續關注。該範圍包括 Westfield 的影響，預計 11 月和 12 月的影響約為 800 萬美元。雖然我們仍然有信心實現我們預測的成本節約，但我們預計大部分節約將在 2026 年年中 Westfield 完全整合後才能實現。

With respect to our pending acquisitions, we have received formal regulatory approval for the Westfield transaction and anticipate closing in early November. Our initial preparations for the Bank Financial close are underway, and we are more excited than ever to expand our reach into the Chicago market. We have filed the necessary applications and expect to receive approval from the regulators in coming months, eyeing a close during the first quarter of 2026. We are very excited to have the Westfield and Bank Financial Associates join our team. In summary, we are very proud of our financial performance for the first nine months of the year, which resulted in industry-leading profitability. We expect to have another strong quarter to close 2025 and build positive momentum as we head into 2026.

關於我們正在進行的收購，我們已經獲得了監管部門對 Westfield 交易的正式批准，預計將於 11 月初完成交易。我們已開始為與 Bank Financial 的交易進行初步準備，並且比以往任何時候都更加興奮地將業務拓展到芝加哥市場。我們已經提交了必要的申請，預計將在未來幾個月內獲得監管機構的批准，目標是在 2026 年第一季完成交易。我們非常高興Westfield和Bank Financial Associates加入我們的團隊。總而言之，我們對今年前九個月的財務表現感到非常自豪，並實現了領先業界的獲利能力。我們預計 2025 年最後一個季度將取得強勁成長，並在邁入 2026 年之際保持積極的成長勢頭。

With that, we’ll now open up the call for questions.

接下來，我們將開始接受提問。

Thank you. (Operator instructions)

謝謝。（操作說明）

Your first question today comes from the line of Brendan Nozle from Hogue Group. Your line is open.

今天第一個問題來自 Hogue Group 的 Brendan Nozle。您的線路已開通。

Hey, good morning, everybody. Hope you are doing well.

嘿，大家早安。希望你一切都好。

Morning, Brendan.

早上好，布倫丹。

I am new to starting off here on a topic that is of interest today, NDFI loan exposure. I think if I look at your reg filings from last quarter, it is a little over $450 million or 4% of loans. I know that it is not huge, but can you just walk us through that book and let us know whether that exposure falls into any of the known commercial verticals that you already have tonight? Thanks.

我是新來的，今天想跟大家聊聊一個大家感興趣的話題：非金融機構貸款風險敞口。我認為，如果我查看你們上個季度的監管文件，貸款額略高於 4.5 億美元，佔貸款總額的 4%。我知道這本書規模不大，但您能否帶我們了解這本書，並告訴我們，這種曝光度是否屬於您今晚已經涵蓋的任何已知商業垂直領域？謝謝。

Thanks. Brendan, we will have Bill Harrod cover that. All right, great.

謝謝。布倫丹，我們會讓比爾哈羅德來處理這件事。好的，太好了。

We have got, as of the end of the quarter, about $434 million in the NDFI portfolio. It is a diversified, conservatively managed, and anchored in high investment grade tier with currently no adversely rated credit. The bulk of the portfolio is made up of traditional REITs of about $304 million across forty-six notes, averaging about $7 million, consisting of a variety of public traded or privately held entities with investment grade or equivalent. We do have a securitization book within that portfolio of $73 million across seven relationships with loan structure using S&P methodology to high investment grade ratings, and we monitor those on a monthly basis with buying basis and independent third-party exams on a routine basis. That makes up the bulk of what we have in that NDFI portfolio.

截至本季末，我們在非金融機構投資組合中擁有約 4.34 億美元。它是一家多元化、管理穩健、信用評級高的投資級公司，目前沒有任何不良信用評級。該投資組合的大部分由傳統的 REIT 組成，總額約為 3.04 億美元，共 46 只債券，平均每隻債券約 700 萬美元，其中包括各種上市或非上市實體，信用等級為投資級或同等水平。我們在該投資組合中確實有一筆價值 7,300 萬美元的證券化資產，涉及七個客戶關係，貸款結構採用標準普爾方法，達到高投資級評級。我們每月都會對這些資產進行監控，並定期進行購買和獨立的第三方審查。這構成了我們非發展金融機構投資組合的大部分。

ss. That is a helpful colour. Thanks for having that prep for us. Maybe turning to the net interest margin, totally get the guide for next quarter, no surprise given recent and forthcoming rate cuts. I am just curious, though, if we get those two cuts in the fourth quarter, how should we think about margin early in next year? I think in the past, you said that each cut is 5 to 6 basis points of near-term pressure before it grinds back up on lag funding costs. Any colour there will be helpful.

ss。這是一個很實用的顏色。謝謝你們為我們所做的準備。或許可以關註一下淨利差，完全可以理解下一季度的預期，考慮到最近和即將進行的降息，這並不令人意外。不過我很好奇，如果第四季真的降息兩次，我們該如何看待明年年初的利潤率？我記得您之前說過，每次降息都會在短期內造成5到6個基點的壓力，之後會因為滯後的融資成本而逐漸恢復。如果您能提供一些細節信息，那就太好了。

Oh, that is helpful colour. Thanks for having that prep for us. Maybe turning to the net interest margin, totally get the guide for next quarter, no surprise given recent and forthcoming rate cuts. I am just curious, so if we get those two cuts in the fourth quarter, how should we think about margin, early in next year? I think in the past you said that each cut is 5 to 6 basis points of near-term pressure before it grinds back up on that funding costs, so any colour there would be helpful.

哦，這個顏色真有用。謝謝你們提前做好準備。或許可以關註一下淨利差，完全可以理解下一季度的預期，考慮到最近和即將進行的降息，這並不令人意外。我只是好奇，如果我們在第四季進行這兩次裁員，那麼在明年年初，我們該如何看待利潤率？我記得你之前說過，每次降息都會在短期內造成 5 到 6 個基點的壓力，之後資金成本就會慢慢回升，所以如果能提供一些相關資訊就太好了。

Yeah, Brendan, this is Jamie. So on the margin, and again, so the other thing you got to keep in mind is we have Westfield coming into the mix, so that's going to create a little bit of noise and it actually helps us going forward here mitigate a little bit of our asset sensitivity. So but if you look at kind of the legacy company in the margin, the way that it reacts to those 25 basis point cuts like I said, and you mentioned it as well, we get about 5 basis points of margin pressure for each of those 25. Basis point cuts and, the way the timing of that, the way that will kind of fold in is that you get, a little bit more pain immediately from the cut and then as deposit costs catch up. We start to actually move that move that back up. So, but really five basis points of pressure. So, if you think about our margin right now, in that in that four range, if we get those two, then we kind of start the year in that 390-ish in that 390-ish range. But then when you factor in Westfield, and with the purchase accounting. And how that will work, we get a little bit of improvement in the margin from them. So that starts to help mitigate some of that pressure if we have those expected rate cuts here at the end of the year. Yes, okay.

是的，布倫丹，這是傑米。所以，從邊際效益來看，還有一點要記住的是，Westfield 也加入了進來，這會帶來一些波動，但實際上這有助於我們在未來降低一些資產敏感性。但是，如果你看看傳統公司的利潤率，就像我剛才說的，你也提到了，它對這 25 個基點的削減的反應，我們會發現，每削減 25 個基點，利潤率就會承受大約 5 個基點的壓力。基點下調，以及下調的時機和方式，其影響方式是，你會立即感受到下調帶來的更多痛苦，然後隨著存款成本的上漲而逐漸緩解。我們開始真正地把那個東西搬回去。所以，其實只有五個基點的壓力。所以，如果你看看我們目前的利潤率，在4左右的範圍內，如果我們能拿到那兩個，那麼我們今年的開局利潤率就能達到390左右。但是，當你把韋斯特菲爾德公司以及採購會計處理考慮進去的時候，情況就不同了。這樣一來，我們的利潤率就能得到一些提升。如果年底能夠如期降息，那麼這將有助於緩解部分壓力。好的。

That makes sense, thank you for taking my questions. Thanks.

明白了，謝謝你回答我的問題。謝謝。

(Operator Instructions)

（操作說明）

Your next question comes from a line of Mark Shutley from KBW. Your line is open.

你的下一個問題來自 KBW 的 Mark Shutley 的一句話。您的線路已開通。

Hey guys, good morning.

嘿，各位，早安。

Maybe one more on the margin. I'm trying to think about, on the asset side loan yields were strong and actually picked up in the quarter, so I was just curious like what new loan originations are coming on today with you guys sort of returning to growth and what you're expecting, for the total sort of portfolio yield in the near term.

或許邊緣地帶還有一個。我正在思考，從資產方面來看，貸款收益率表現強勁，而且在本季度實際上有所上升，所以我很好奇，隨著你們逐漸恢復增長，今天會有哪些新的貸款發放，以及你們對近期整體投資組合收益率的預期。

Yeah, Mark, this is Archie. I will start and Jamie, you can come in on me if you want to amplify, but you know the rate cut certainly that we had effects origination yields as well. And so, we are probably before they cut around seven on origination yields and it is closer I guess like high 6s, so you said 680 690 and it's going to come in closer to the mid 6s. When you look at the month of September, it was probably right around 650, maybe $650 and change. So we'd say sort of right now in that range it dropped down a little bit more with some more rate cuts because again a lot of we do is commercial oriented tied to variable rates and.

是的，馬克，這是阿奇。我先開始，傑米，如果你想補充，可以隨時加入，但你知道，降息肯定也對貸款發放率產生了影響。所以，我們可能還沒看到他們將貸款發放收益率下調到 7 左右，我猜更接近 6 的上限，所以你說的是 680 690，但最終會更接近 6 的中段。如果看一下九月的數據，大概在 650 美元左右，可能是 650 美元多一點。所以我們認為，目前在這個範圍內，隨著進一步的降息，利率又下降了一些，因為我們所做的工作很多都是面向商業的，與浮動利率相關。

Mark, I mean like.

馬克，我的意思是，就像。

We've talked about in in previous quarters, again looking at the legacy first financial portfolio absent Westfield, we still have about 60% of our loan book that that moves on the short end. So obviously those cuts will impact the yield, on the loan side.

我們在前幾季也討論過這個問題，再次審視沒有 Westfield 的傳統第一金融投資組合，我們仍然有大約 60% 的貸款組合處於短期波動狀態。顯然，這些削減措施會對貸款方面的收益率產生影響。

Yeah, that makes sense.

嗯，有道理。

And then maybe just on the growth, so you mentioned pipelines are strong, and I was just curious like what specific verticals or markets you expect to drive that growth, over the next couple quarters.

然後，關於成長方面，您提到管道建設強勁，我很好奇您預計在接下來的幾個季度裡，哪些具體的垂直領域或市場將推動成長。

Yeah, Marks Archie again.

是的，又是馬克·阿奇。

Yeah, maybe talk about long growth overall. Our production, if you just look at total commitments, Q3 was on par with Q2, so pretty strong.

是啊，或許可以談談整體的長期成長。如果只看總訂單量，我們的生產情況第三季與第二季持平，相當強勁。

I would argue the strongest of the year in both cases, but we saw the actual fundings from that drop compared to what we saw in prior quarter, so lower fundings primarily construction related, and then we did see a dip in line utilization of the commercial side that it accounted for a little bit of the.

我認為這兩方面都是今年最強勁的，但我們看到實際的資金與上一季度相比有所下降，資金減少主要與建設有關，然後我們看到商業方面的線路利用率下降，這在一定程度上解釋了資金減少的原因。

A little bit lower overall growth in the quarter as we look in 4, strong commercial is the biggest driver.

本季整體成長略有下降，正如我們在第 4 季所看到的，強勁的商業表現是最大的驅動力。

We've got different verticals within commercial, but strong commercial is the big driver. Summit funding. This is always their peak quarter for production, so that will be another big driver. Commercial real estate will have a little bit of growth is what we're projecting in Q4 and probably the only vertical that has a little bit of pressure is in our Oak Street group just looks like they've got a lot more payoff pressure that we're expecting here in Q4.

我們在商業領域有不同的垂直產業，但強大的商業實力是最大的驅動力。峰會資金。這歷來是他們的生產旺季，所以這將是另一個重要的驅動因素。我們預計第四季度商業房地產將略有增長，可能唯一面臨一些壓力的垂直領域是我們的橡樹街集團，看起來他們在第四季度面臨著比我們預期更大的回報壓力。

But the combination of it all gets you to the number that we're projecting of 5% in growth.

但所有這些因素加在一起，就得出了我們預測的 5% 的成長數字。

Yeah, that makes sense. Appreciate the call. Thanks for taking my questions.

嗯，有道理。感謝您的來電。謝謝您回答我的問題。

(Operator Instructions)

（操作說明）

Your next question comes from a line of Daniel Tamayo from Raymond James. Your line is open.

你的下一個問題來自 Raymond James 的 Daniel Tamayo 的一句話。您的線路已開通。

Thank you. Good morning, guys.

謝謝。各位早安。

Danny.

丹尼。

Maybe just one on the on the fees and expenses.

或許只需要支付其中一筆費用和開支。

So the 4Q guide pulling out Westfield just for a second was higher than, what I what we were looking for and certainly what the 3Q number was, just curious, if there's something seasonal, unusual, unique in the fourth quarter, or, maybe if you can kind of give us some indication of what the run rates would look.

所以，如果暫時排除 Westfield 的影響，第四季的業績指引高於我們預期，當然也高於第三季的數據。我只是好奇，第四季度是否存在季節性、不尋常或獨特的因素，或者，您能否大致預測一下營運率會是什麼樣子？

Like going into 26.

就像進入26歲一樣。

Yeah Danny, it's Jamie. Really the big impact from the 3rd quarter to the 4th quarter in that, like again, I think you're looking at this ex Westfield, kind of the legacy first financial numbers is really coming from Bannockburn.

是的，丹尼，我是傑米。第三季到第四季之間最大的影響在於，我認為，你現在看到的是，不包括 Westfield 在內的遺留財務數據，這些數據實際上來自 Bannockburn。

The forecast that we're getting from them for the 4th quarter is a little higher even than what we had. In the in the strong 3rd quarter, a little bit of bump as well as the summit related to the operating leases and then and then our wealth department, especially on the on the M&A and the investment banking side up just a little bit. From that division that we have there. So it's really those three areas primarily though driven by Banning burn.

他們給的第四季預測比我們之前的預測還要高一些。在強勁的第三季度，由於經營租賃業務的峰值，以及我們財富管理部門（特別是併購和投資銀行業務）的略微增長，出現了一些小幅增長。從我們那裡的那個部門來看。所以，這三個地區主要是受 Banning 火災的影響。

And they and like we have talked before day I mean they can that can bounce around a little bit, so I mean to kind of talk about that, long, long-term, we look at that business kind of year over year now is growing, in that generally in that 10% range are all.

而且，就像我們之前討論過的，我的意思是，它們可能會有點波動，所以我的意思是，從長遠來看，我們觀察一下這個業務，現在它正在逐年增長，一般來說，都在 10% 的範圍內。

Commission based.

佣金制。

Businesses, so when they do well, you're going to see more commission paid out which drives the Sorry boss. Yes.

因此，當企業經營良好時，你會看到支付更多的佣金，這促使老闆感到抱歉。是的。

That is great. No, it's very helpful.

太好了。不，這很有幫助。

Excuse me, and, my other question I guess on the.

打擾一下，我的另一個問題是關於…

On the credit side, so a good quarter from a credit perspective guiding to similar credit costs, just curious, how long you think those play out. I think in the past we've talked about a little bit higher run rate on the charge off side, any read throughs in in the in the near term past the 4th quarter on credit.

從信貸方面來看，這是一個信貸表現良好的季度，預示著信貸成本將保持類似水平。我只是好奇，您認為這種情況會持續多久？我認為過去我們討論過沖銷率可能會略高一些，以及在第四季度之後短期內，信貸方面的任何支出都會有所增加。

Yeah, Archie, I don't, I mean, I think it's kind of steady as we go.

是的，Archie，我不這麼認為，我的意思是，我覺得我們現在的情況比較穩定。

I think been saying all year 25 to 30 basis points, kind of mid-20s, it seems to be the run rate for us in the current environment and I think you know over a period of quarters that's what we would expect.

我認為我今年一直說的是 25 到 30 個基點，大概在 20 多個基點左右，這似乎是我們目前環境下的正常波動幅度，而且我認為，從幾個季度來看，這也是我們所期望的。

Understood. Okay, and then lastly, on the capital front, so you got the two deals closing here, in the near term, take a little bit of a hit to capital, but curious, you will still have pretty strong CET1. How you're thinking about buybacks, you probably think that stock is a little undervalued right now, once we get past the deals, like if there's a bogey you're looking at on the capital side or.

明白了。好的，最後，關於資本方面，這兩筆交易即將完成，短期內會對資本造成一些打擊，但有趣的是，你們的CET1仍然會非常強勁。你對股票回購的看法是，你可能認為這支股票現在有點被低估了，一旦我們解決了交易問題，例如你在資本方面看到了什麼障礙，或者。

Any colour there will be will be great.

任何顏色都會很棒。

Yeah, Danny, this is Jamie. So yeah, I think you said it well what we'll do here over the next really probably 2 to 3 quarters is, let the deals flow in and kind of see where we're shaking out in terms of in terms of capital ratios at that point. I mean, we are building.

是的，丹尼，這是傑米。所以，是的，我認為你說得很好，接下來我們可能會在接下來的兩到三個季度裡，讓交易湧入，看看屆時我們的資本比率會如何變化。我的意思是，我們正在建設。

TCE relatively and tangible book value relatively quickly at this point and we will take some of the TCE takes about 120 basis point hit in the once we close the Westfield deal just because of the all cash nature of it and then so we'll let the next two or three quarters kind of play out and then see where we are and see where we're trading in terms of.

目前，TCE 相對而言和有形帳面價值會相對迅速地增長，一旦完成 Westfield 交易，由於該交易是全現金交易，TCE 將受到約 120 個基點的衝擊，因此我們將承擔一部分 TCE 損失。接下來，我們將觀察接下來的兩到三個季度，看看情況如何，以及我們的交易情況如何。

Multiple at that point, if we're trading anywhere in that, 150 obtainable book value or below, we would potentially look at buybacks at that point.

如果此時股價倍數在 150 倍或以下（可獲得的帳面價值），我們可能會考慮回購股票。

Great.

偉大的。

Thanks for all the call guys. Appreciate it.

謝謝各位的來電。謝謝。

(Operator Instructions)

（操作說明）

Your next question comes from a line of Terry McAvoy from Stevens. Your line is open.

你的下一個問題出自史蒂文斯的崔麥卡沃伊的一句台詞。您的線路已開通。

Hi, thanks. Good morning, everybody. .

您好，謝謝。大家早安。。

From talking to some of the other banks that are in your metro markets in your footprint, kind of surprised with the deposit competition, a bit stronger than I would have guessed and your cost of funds up a few bases points quarter over quarter. So, if you maybe just talk about deposit competition and you did not have loan growth this quarter, next quarter, you are guiding towards that. Does that kind of drive those deposit costs higher as you look to fund that growth?

與您所在都市市場的其他一些銀行交談後，我對存款競爭感到有些驚訝，比我預想的要激烈一些，而且您的資金成本環比上漲了幾個百分點。所以，如果你只是談論存款競爭，而你本季沒有貸款成長，那麼下個季度你就會朝著這個方向努力。為了籌集成長資金，這是否會推高存款成本？

Yeah, Terry, this starts. I will start.

是的，特里，開始了。我先開始。

It was modestly up for the quarter. I mean I would argue that saltish and with the rate cut that occurred, we did take some, I think, decisive actions on the deposit side that went into effect really this quarter.

本季略有成長。我的意思是，我認為，隨著降息的發生，我們在存款方面採取了一些果斷的措施，這些措施在本季度真正生效了。

So you know we have more short-term rate cuts coming, but We would expect a reduction in our deposit costs going forward, it was a pretty aggressive cut and yet I mean the market's competitive, but if you look at our loan to deposit ratio and we felt, even with some loan growth, we felt we could take a little bit more aggressive actions and we'll look to do more here with more fed cuts. And then, I think one thing we like about bank financial again one day. They have lower deposit and funding costs than we do, and that market from what we can see still has a little more rational pricing than what we're seeing here kind of in southwest Ohio.

所以你知道，短期內還會有更多降息措施，但我們預期未來存款成本會下降。這次降息幅度相當大，而且市場競爭激烈，但如果你看看我們的存貸比，即使貸款有所增長，我們也覺得可以採取更積極的措施，隨著美聯儲進一步降息，我們會在這方面採取更多行動。然後，我想有一天我們又會再喜歡上銀行金融的一點。他們的存款和融資成本比我們低，而且從我們目前所見，那個市場的定價仍然比我們在俄亥俄州西南部看到的要理性一些。

Yeah, the other thing, Terry to keep in mind, I mean we do have the, a little bit higher, some loan growth in the 4th quarter and then going forward. But we don't think that puts a lot of pressure on our deposit costs because of the liquidity that we get coming in and especially in the bank financial deal, if it closes in the first in the first part of 26, so they already have a relatively low. Loan to deposit ratio and then we're selling a multi-family portfolio which will then create even more liquidity for us to utilize for loan growth or to pay off borrowings or to reinvest.

是的，還有一點，特里，需要記住的是，在第四季度以及未來一段時間內，我們的貸款成長確實會略高一些。但我們認為這不會給我們的存款成本帶來太大壓力，因為我們獲得了流動性，尤其是在銀行金融交易中，如果它在 26 年上半年完成，那麼他們的存款成本已經相對較低。貸款存款比率，然後我們出售多戶住宅投資組合，這將為我們創造更多流動性，用於貸款成長、償還借款或再投資。

That's great.

那太棒了。

Thank you and nice to see the FX trading and the 4Q guide higher at 18 to 20. I just want to make sure that run rate looking on the 26, do you think that is more consistent of next year, or is this more of just a couple of strong quarters and next year we'll go back to some of your prior comments on the outlook for that revenue line.

謝謝，很高興看到外匯交易和第四季度指引都上升到了 18 到 20。我只是想確認一下，從 26 號的情況來看，您認為明年的運行率會更穩定嗎？還是說這只是幾個強勁的季度，明年我們又會回到您之前對該營收前景的一些看法？

Well, certainly Q4 would be a peak for them, Terry, if they hit the numbers that are being projected, and as Jamie said, it sort of bounces around. We look at it more on kind of an annual or kind of four quarter basis, rolling even, they will, we've owned them now for quite a while and what we've observed is they grow, they may flatten out a little bit, then they hit another growth spurt, but you know if you think 5 to 10% kind of growth rate. I think you are in the ballpark for what we would expect them to do.

嗯，特里，如果他們能達到預期的數字，那麼第四季度肯定會是他們的高峰，但正如傑米所說，情況有點波動。我們更多地從年度或季度的角度來看待這個問題，滾動比較，它們會增長，我們已經持有它們相當長一段時間了，我們觀察到的是，它們會增長，可能會稍微趨於平穩，然後又會迎來另一次增長，但你知道，如果你認為增長率在 5% 到 10% 之間。我認為你的估計基本上符合我們對他們的預期。

Yeah, Terry, and this is Jamie. As we get into as we look out kind of into twenty-six, I mean that that will, I would not annualize this fourth quarter number that we are talking about. So, I would look more into twenty-six at like a $65 to $70 million type of a run rate for them.

是的，我是特里，這位是傑米。當我們展望26年的時候，我的意思是，我不會將我們正在討論的第四季數位年化。所以，我會更關心年收入在 6500 萬到 7000 萬美元之間的 26 支球隊。

Perfect. Again, thanks for taking my questions. Have a nice weekend.

完美的。再次感謝您回答我的問題。祝你周末愉快。

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

Your next question comes from the line of John Armstrom from RBC. Your line is open. Hey.

你的下一個問題來自 RBC 的 John Armstrom。您的線路已開通。嘿。

Good morning, guys.

各位早安。

Hey, Jimmy in your prepared comments, you.

嘿，吉米，在你準備好的評論中，你。

Touched on the workforce efficiency efforts. Can you talk a little bit about where you are in that journey and then when you look at the two acquisitions, what kind of opportunities do you see there? Because it seems like you, you are going to apply this framework over the top of those two deals.

談到了提高員工效率的措施。您能否談談您目前在這段旅程中處於什麼階段？然後，當您審視這兩項收購時，您認為其中蘊含著哪些機會？因為看起來你打算將這個框架應用在那兩筆交易之上。

Yeah, John, this is Archie. I will start. We're probably 90% of the way through the company, the first financial legacy company now, so, there's a little bit left in some areas, but.

是的，約翰，這是阿奇。我先開始。我們已經完成了公司 90% 的工作，這是第一家金融遺產公司，所以，在某些領域還有一些工作要做，但是。

It's probably going to be a couple of quarters more to get a little bit of opportunity out of those areas. So as I think we alluded to in our comments that we think the opportunity to continue to get efficiency comes from the two acquisitions, and I think in the Westfield case we had set around 40% expense reduction from the combination and I think we're well on our way to achieve that, maybe slightly exceeded.

可能還需要幾個季度才能從這些領域獲得一些機會。正如我們在評論中提到的，我們認為繼續提高效率的機會來自於這兩項收購，而且我認為在 Westfield 的案例中，我們設定了合併後費用減少約 40% 的目標，我認為我們正在朝著這個目標穩步前進，甚至可能略微超額完成。

Bank Financial was maybe just a little bit less because there's a bigger branch count, but what we had modelled again, we were well on our way to exceed that, and that includes us in both those markets adding back roles to drive more revenue, some of the businesses we have that maybe those banks didn't have, we're adding the appropriate people to help us grow in those markets, and even with that, we would still achieve.

銀行金融公司可能略少一些，因為它的分行數量更多，但我們再次建模後發現，我們很有可能超過這個目標，這包括我們在這兩個市場增加職位以推動更多收入，以及我們擁有的一些其他銀行可能沒有的業務，我們正在增加合適的人員來幫助我們在這些市場發展，即使這樣，我們仍然能夠實現目標。

The expense that we've reductions that we modelled in those deals.

我們在這些交易中已經模擬了費用削減情況。

Okay, that makes sense.

嗯，這說得通。

Yeah, some good opportunities there obviously for production and Terry took a couple of my questions on deposits, but Jamie, can you just remind us of the typical seasonal flows on deposits that you see in the 4th quarter.

是的，那裡顯然有一些不錯的生產機會，Terry 回答了我幾個關於礦藏的問題，但是 Jamie，你能提醒我們一下你在第四季度看到的礦藏的典型季節性流量嗎？

Yeah, so we just to yeah, to remind you and everybody else, we get seasonal bump in public funds, mainly from Indiana where property taxes are due, so we get those in May and November and so typically we will get.

是的，所以我們只是想提醒您和其他所有人，我們會獲得季節性的公共資金增長，主要來自印第安納州，因為那裡會繳納房產稅，所以我們會在 5 月和 11 月收到這些資金，所以通常我們會收到。

Call it around $150 to $200 million kind of extra of deposits in those in those quarters on average, and then they a little bit more skewed, I would say to the to the second quarter, but call it 150 to 200 million in both of those quarters and then and then they run out in the in the subsequent quarter and kind of go back down to the to the base level but that's pretty much like clockwork. I mean it happens pretty much every quarter and then so that is what you saw here in the third quarter where those public funds running down by 100 to 150 million. And then, we just replace those with, sometimes we just replace those with brokered CDs or just or borrowings.

平均而言，這兩個季度的額外存款約為 1.5 億至 2 億美元，然後到了第二季度，情況略有不同，但這兩個季度的存款總額約為 1.5 億至 2 億美元，然後在接下來的季度，存款就會耗盡，並回落到基本水平，但這幾乎是按部就班的。我的意思是，這種情況幾乎每季都會發生，所以你在第三季就看到了這種情況，公共資金減少了 1 億到 1.5 億美元。然後，我們有時會用經紀CD或借款來替換它們。

No, okay, that is helpful. Thanks a lot, guys.

好的，這很有幫助。非常感謝各位。

Yeah, see you.

好的，再見。

(Operator Instructions)

（操作說明）

that concludes our question-and-answer session. I will now turn the call back over to Archie Brown for closing comments.

我們的問答環節到此結束。現在我將把電話轉回給阿奇·布朗，請他做總結發言。

Thank you, Rob. I want to thank you for joining us today. We really feel great about the quarter we had and are excited about the fourth quarter and the moment we are building for 2026 with the pending acquisitions. We look forward to talking to you again in a quarter. Have a great day and weekend.

謝謝你，羅布。感謝各位今天蒞臨。我們對本季的業績感到非常滿意，並對第四季度以及我們正在為 2026 年進行的收購做好準備感到興奮。我們期待在一個季度後再次與您交談。祝您今天和週末愉快。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for your participation. You may now disconnect.

感謝您的參與。您現在可以斷開連線了。