Flushing Financial Corp (FFIC) 2023 Q2 法說會逐字稿

Good day and welcome to the Flushing Financial Corporation Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mr. John Buran, president and CEO.

美好的一天，歡迎參加法拉盛金融公司 2023 年第二季財報電話會議。 （操作員說明）請注意此事件正在被記錄。現在我想將會議交給總裁兼執行長約翰·伯蘭先生。

Good morning and thank you for joining us for our Second Quarter 2023 Earnings Call. Following my prepared remarks, Susan will review the financial trends and we will then answer any questions. During the first quarter, the company instituted a 6 step action plan to enhance the resilience of our business model and strengthen our financial performance.

早安，感謝您參加我們的 2023 年第二季財報電話會議。在我準備好的發言之後，蘇珊將回顧金融趨勢，然後我們將回答任何問題。第一季度，公司製定了六步行動計劃，以增強我們業務模式的彈性並增強我們的財務表現。

We executed this plan well during the second quarter and are pleased with the progress we have made so far on key points. First, to move more towards interest rate neutral, we added more than $400 million of asset swaps. Additionally, $250 million of funding swaps became effective during the quarter. We're also increasing the percentage of back to back swap loans. These loans are over 35% of our loan pipeline and total floating rate loans are approximately 50%.

我們在第二季度很好地執行了該計劃，並對迄今為止在關鍵點上取得的進展感到滿意。首先，為了更接近利率中性，我們增加了超過 4 億美元的資產互換。此外，2.5 億美元的資金互換在本季生效。我們也增加了背對背掉期貸款的比例。這些貸款占我們貸款管道的 35% 以上，浮動利率貸款總額約為 50%。

These actions significantly reduced our interest rate sensitivity position while providing additional income. Second, we increased our focus on risk adjusted returns and overall profitability. As a result yields on the loan pipeline rose 20 basis points and yields on loan closings increased 13 basis points.

這些行動顯著降低了我們的利率敏感度，同時提供了額外的收入。其次，我們更關注風險調整回報和整體獲利能力。結果，貸款管道的收益率上升了 20 個基點，貸款結清的收益率上升了 13 個基點。

In addition, our loan pipeline increased 56% quarter over quarter. While it will take time for new and repriced loans to have a significant impact on overall loan yields, we are encouraged by the results so far. Third, we're looking to expand our client base and build loyalty by emphasizing our excellent brand of customer service and deep community relationships. Late in the quarter, we hired a team of commercial real estate lenders with considerable experience and robust client rosters.

此外，我們的貸款管道環比成長 56%。雖然新貸款和重新定價貸款對整體貸款收益率產生重大影響需要時間，但迄今為止的結果令我們感到鼓舞。第三，我們希望透過強調我們卓越的客戶服務品牌和深厚的社群關係來擴大我們的客戶群並建立忠誠度。在本季末，我們聘請了一支由擁有豐富經驗和強大客戶名冊的商業房地產貸款機構組成的團隊。

We also continue to see high single digit growth in checking account openings and robust CD growth. Fourth, we reviewed new and existing relationships resulting in improved credit metrics and normalized net charge offs. We also added further layers of analysis to our review process for any future deals. This review and actions reinforced our comfort with a low risk profile of our loan portfolio.

我們也持續看到支票帳戶開戶和定期存單強勁成長。第四，我們審查了新的和現有的關係，從而改善了信用指標和標準化的淨沖銷。我們也為未來交易的審核流程增加了更多層次的分析。此次審查和行動增強了我們對貸款組合的低風險狀況的信心。

If we are preserving strong liquidity and capital, we are looking for ways to expand our liquidity sources despite having available liquidity of nearly $4 billion. Average deposits increased both year over year and quarter over quarter. Capital ratios were also stable during the quarter. Sixth, we are tightening our expense controls by placing greater scrutiny on operating and discretionary expenses. In a period of high inflation second quarter '23 core expenses are down approximately 1% year over year.

如果我們要保持強勁的流動性和資本，儘管我們擁有近 40 億美元的可用流動性，但我們仍在尋找擴大流動性來源的方法。平均存款年比和季後均有所增長。本季資本比率也保持穩定。第六，我們透過對營運費用和可自由支配費用進行更嚴格的審查來加強費用控制。在高通膨時期，2023 年第二季核心支出較去年同期下降約 1%。

Overall, we expect these decisive actions to result in an improved financial profile over time. These actions along with our strong liquidity will also allow us to continue our long history of dividend payments into the future. In addition to our action plan, Slide four outlines our four areas of focus for long term success. First interest rate risk is a priority and the actions we have taken have resulted in a 64% reduction in this risk over the past year.

總體而言，我們預計這些果斷行動將隨著時間的推移改善財務狀況。這些行動加上我們強大的流動性也將使我們能夠在未來繼續我們長期的股利支付歷史。除了我們的行動計畫之外，第四張投影片還概述了我們實現長期成功的四個重點領域。首先，利率風險是首要任務，我們採取的行動在過去一年使該風險降低了 64%。

This is important given the outlook on rates. Second, we are focused on maintaining our credit quality. Our loan portfolio comprises low risk loans to stable borrowers. Over 88% of the loan portfolio is secured by real estate with an average loan to value of less than 36%. The current debt service coverage ratio is 1.8 times for our multifamily and investor commercial real estate portfolios.

考慮到利率前景，這一點很重要。其次，我們注重維護信用品質。我們的貸款組合包括向穩定借款人提供的低風險貸款。超過 88% 的貸款組合由房地產擔保，平均貸款價值低於 36%。目前，我們的多戶住宅和投資者商業房地產投資組合的償債覆蓋率為 1.8 倍。

The third area of focus is liquidity, which I touched on in a previous slide. We have significant liquidity and are looking to fully utilize our balance sheet to add more. The last area of focus is customer experience. Central to our ability to deliver exceptional services is our ties to our local communities. About a third of our branches are in Asian markets and we continue to implement community engagement initiatives and grow our presence in these areas to build on our loyal customer base.

第三個重點領域是流動性，我在上一張投影片中談到了這一點。我們擁有大量流動性，並希望充分利用我們的資產負債表來增加更多流動性。最後一個重點領域是客戶體驗。我們提供卓越服務的能力的核心是我們與當地社區的連結。我們大約三分之一的分支機構位於亞洲市場，我們繼續實施社區參與計劃並擴大我們在這些地區的影響力，以建立我們忠實的客戶群。

We also continue to enhance our digital banking solutions which create a more convenient experience and allows us to engage with customers more seamlessly. We're confident that these four areas of focus will position the company to achieve long term success. Slide five represents our liquidity profile. We have approximately $3.7 billion of available liquidity from a variety of sources, including the Federal Home Loan Bank of New York, other commercial banks, cash on hand and free securities.

我們也持續增強我們的數位銀行解決方案，創造更便利的體驗，並使我們能夠更無縫地與客戶互動。我們相信，這四個重點領域將使公司長期成功。第五張投影片代表了我們的流動性狀況。我們擁有來自各種來源的約 37 億美元的可用流動資金，包括紐約聯邦住房貸款銀行、其他商業銀行、庫存現金和免費證券。

Today our available liquidity is 44% of assets and we're working to expand borrowing capacity from existing relationships by pledging several types of collateral. As a result, we have a high degree of comfort in the stability of funding and available liquidity. Our loan portfolio is outlined on Slide six. We have structured our real estate loan portfolio to ensure stability with multifamily and investor commercial real estate comprising 66% of the total portfolio.

如今，我們可用的流動性佔資產的 44%，我們正在努力透過抵押多種類型的抵押品來擴大現有關係的借貸能力。因此，我們對資金的穩定性和可用流動性感到非常滿意。幻燈片六概述了我們的貸款組合。我們建立了房地產貸款組合，以確保佔總投資組合 66% 的多戶住宅和投資者商業房地產的穩定性。

Manhattan office buildings are approximately 6/10 of 1% of net loans. In general, the real estate portfolio has strong sponsor support and excellent credit performance. Overall, we remain very comfortable with the quality of the loan portfolio. Slide seven provides the detail on our Asian markets. Once the Bensonhurst branch in Brooklyn opens later this year, a 1/3 of our branches will be in predominantly Asian markets. We have $1.2 billion of deposits and $764 million of loans in Asian markets.

曼哈頓辦公大樓約佔淨貸款 1% 的 6/10。整體而言，房地產投資組合擁有強大的保薦人支援和優良的信用表現。總體而言，我們對貸款組合的品質仍然非常滿意。第七張幻燈片提供了我們亞洲市場的詳細資訊。一旦布魯克林的 Bensonhurst 分行今年稍後開業，我們 1/3 的分行將位於主要是亞洲市場。我們在亞洲市場擁有 12 億美元的存款和 7.64 億美元的貸款。

These deposits are 18% of our total deposits and we have only a 3% share of market. There's substantial room for growth. Our approach to this market is supported by our multilingual staff, our Asian Advisory Board and our support of cultural activities. This market, which has total deposits of $36 billion, continues to be an important opportunity for us.

這些存款占我們總存款的 18%，但我們只佔 3% 的市佔率。有很大的成長空間。我們的多語言員工、亞洲顧問委員會以及對文化活動的支持為我們進入這個市場提供了支持。這個總存款達 360 億美元的市場對我們來說仍然是一個重要的機會。

Slide eight depicts the growth of our digital banking platforms. We continue to see high growth rates and monthly mobile deposit users. Users with active online banking status and digital banking enrollment. The numerator platform, which digitally originates small dollar loans as quickly as 48 hours, continues to grow. We originated approximately $10 million of commitments in the first half of the year, which have an average rate greater than the overall loan portfolio yield.

幻燈片八描繪了我們數位銀行平台的成長。我們繼續看到高成長率和每月行動存款用戶。具有活躍線上銀行狀態和數位銀行註冊的用戶。分子平台可在 48 小時內以數位方式發放小額美元貸款，並持續成長。今年上半年，我們發放了約 1,000 萬美元的承諾，其平均利率高於整體貸款組合收益率。

We continue to explore other "fintech" product offerings and partnerships to further enhance our digital banking platform and customer experience. The second quarter had several notable events to highlight, as you can see on Slide nine. As pictured, we hosted a ribbon cutting ceremony at our Hauppauge branch which opened late in the first quarter in a vibrant industrial park.

我們繼續探索其他「金融科技」產品和合作夥伴關係，以進一步增強我們的數位銀行平台和客戶體驗。正如您在幻燈片九中看到的那樣，第二季度有幾件值得注意的事件值得強調。如圖所示，我們在 Hauppauge 分公司舉辦了剪綵儀式，該分公司於第一季末在一個充滿活力的工業園區開業。

Community involvement is what separates us from other banks. Here's a sample of the events we participated in during the quarter. Participating in these types of initiatives builds on our already strong ties with our local communities and drives customer loyalty. I'll now turn it over to Susan to provide more detail on our key financial metrics.

社區參與是我們與其他銀行的不同之處。以下是我們在本季參加的活動範例。參與這些類型的措施建立在我們與當地社區業的牢固聯繫之上，並提高了客戶忠誠度。現在我將把它交給蘇珊，以提供有關我們關鍵財務指標的更多詳細資訊。

The company reported second quarter 2023 GAAP earnings per share of $0.29 and core earnings per share of $0.26. The quarterly results were significantly improved compared to the first quarter. Average total deposits increased 7% year over year and 1% during the quarter.

該公司公佈的 2023 年第二季 GAAP 每股收益為 0.29 美元，每股核心收益為 0.26 美元。季度業績較一季有明顯改善。平均總存款年增 7%，本季成長 1%。

We continue to grow our CD portfolio, which is now 30% of average deposits. The cost deposits totaled 2.68%, while the cost of funds was 2.8%. As expected, loan growth was muted, increasing only 1% year over year. However, the loan pipeline increased 56% quarter over quarter with pipeline yields and core loan yields also expanding.

我們持續擴大 CD 投資組合，目前佔平均存款的 30%。存款成本為2.68%，資金成本為2.8%。如預期，貸款成長乏力，年比僅成長 1%。然而，貸款管道環比成長 56%，通路收益率和核心貸款收益率也在擴大。

Non-performing assets declined 6% during the quarter, reflecting our conservatively underwritten loan portfolio. Overall, the second quarter results were an improvement versus the first as we continue to adjust to the higher rate environment. Slide 11 depicts our deposit portfolio. Despite the Fed raising rates and industry deposits declining, our average deposits have increased 7% year over year and 1% quarter over quarter.

本季不良資產下降 6%，反映出我們對承保貸款組合的保守態度。總體而言，隨著我們繼續調整以適應更高的利率環境，第二季的業績較第一季有所改善。投影片 11 描述了我們的存款組合。儘管聯準會升息且產業存款下降，但我們的平均存款年增 7%，季增 1%。

The growth is driven by the 150% year over year and 22% quarter over quarter increase in CDs which lengthened the duration of our liabilities, thus reducing our liability sensitivity. Growing non-interest bearing deposits is challenging in this high rate environment but remains a focus. Average non-interest bearing deposits declined both quarter over quarter and year over year, though checking account openings increased 10% year over year.

這一增長是由定期存款同比增長 150% 和環比增長 22% 推動的，這延長了我們的負債期限，從而降低了我們的負債敏感性。在這種高利率環境下，無利息存款的成長具有挑戰性，但仍然是一個焦點。儘管支票帳戶開戶量年增 10%，但平均無利息存款較上月和年比均有所下降。

Our loan to deposit ratio has improved 102% from 105% a year ago. As a reminder, we generally have seasonality in certain segments of our deposit base and the summer months balances are generally lower than the remainder of the year. Slide 12 outlines our loan portfolio and yields.

我們的貸存比率從一年前的 105% 提高了 102%。提醒一下，我們的存款基礎的某些部分通常存在季節性，夏季月份的餘額通常低於一年中的其他時間。第 12 投影片概述了我們的貸款組合和收益率。

Net loans increased 1% year over year but were down 1% quarter over quarter. Loan closings also declined year over year and quarter over quarter as customers adapt to the increased rate environment. The yield on the closings was over 7% for the second consecutive quarter. Core loan yields increased 19 basis points during the quarter and for the third consecutive quarter, yields on the loan closings exceeded the yields on the satisfactions at an accelerating pace. Prepayment penalty income declined to $278,000 in the quarter from $2.3 million a year ago and $610,000 in the prior quarter.

淨貸款年增1%，但季減1%。隨著客戶適應利率上升的環境，貸款結清量也較去年同期下降。收盤收益率連續第二季超過 7%。本季核心貸款收益率上升 19 個基點，且貸款結清收益率連續第三個季度超過滿意度收益率。本季預付款罰金收入從一年前的 230 萬美元和上一季的 61 萬美元下降至 27.8 萬美元。

The loan pipeline increased 56% quarter over quarter with over 35% of the pipeline consisting of attractive back to back swap loans and approximately 50% are floating rate loans. Slide 13 provides more detail on the contractual repricing of the loan portfolio. Approximately $1.1 billion or 16% reprices with each Fed move.

貸款管道環比增長 56%，其中超過 35% 的貸款管道包括有吸引力的背對背掉期貸款，約 50% 是浮動利率貸款。投影片 13 提供了有關貸款組合合約重新定價的更多詳細資訊。聯準會每次舉措都會重新定價約 11 億美元或 16%。

During the quarter, we added $400 million of interest rate hedges on loans, which effectively increases the amount of loans that will reprice the Fed move $1.5 billion or over 21% of the loan portfolio. For the remainder of 2023 another $458 million is due to reprice at a rate of 210 basis points higher than the current yield.

本季度，我們增加了 4 億美元的貸款利率對沖，這實際上增加了貸款金額，而聯準會將重新定價 15 億美元，佔貸款組合的 21% 以上。在 2023 年剩餘時間內，也將以比目前收益率高 210 個基點的利率重新定價 4.58 億美元。

In 2024 and 2025, about $1.5 billion of loans will reprice 220-230 basis points higher. These values are based on the underlying index value at June 30th, 2023 and do not consider any future rate moves. This repricing should drive net interest margin expansion once funding costs stabilize.

2024 年和 2025 年，約 15 億美元的貸款重新定價將上漲 220-230 個基點。這些值是基於 2023 年 6 月 30 日的基礎指數值，不考慮任何未來的利率變動。一旦融資成本穩定，這種重新定價應該會推動淨利差擴大。

Slide 14 outlines the net interest income and margin trends. The GAAP net interest margin declined only nine basis points to 2.18% during the second quarter. This is the lowest amount of compression over the past four quarters and is consistent with the NIM for the month of March.

投影片 14 概述了淨利息收入和利潤率趨勢。第二季 GAAP 淨利差僅下降 9 個基點至 2.18%。這是過去四個季度的最低壓縮量，與 3 月的淨利差 (NIM) 一致。

We expect the NIM will remain under pressure as long as the Fed raises rates, but the pressure should be more manageable based on the current forecasted rate hikes through the remainder of the year. After a lag, we expect the NIM would begin to expand as the pressure on funding costs ease and and loans continue to reprice higher.

我們預計，只要聯準會升息，淨利差就會繼續承受壓力，但根據目前預測的今年剩餘時間內的升息情況，壓力應該更容易控制。經過一段時間的滯後，我們預計淨利差將開始擴大，因為融資成本的壓力有所緩解，貸款價格繼續走高。

Turning to slide 15. As John mentioned, one of our goals for 2023 is to significantly move more towards interest rate neutral. The goal for the balance sheet is to better match the duration of our assets, which is 3-4 years more closely to the duration of our funding, which is about 1-2 years.

轉向投影片 15。正如約翰所提到的，我們 2023 年的目標之一是大幅轉向利率中性。資產負債表的目標是更好地匹配我們資產的期限（3-4 年）和我們的融資期限（約 1-2 年）。

We have made considerable progress over the past year. For an immediate rise of 100 basis points in rates. Our net interest income would decline by 3%. A year ago this impact was a 9% decline or almost 2/3 improvement. The addition of interest rate hedges and more floating rate assets are the key drivers of the reduced sensitivity.

過去一年我們取得了長足進步。立即升息100個基點。我們的淨利息收入將下降 3%。一年前，這一影響下降了 9%，或改善了近 2/3。利率對沖和更多浮動利率資產的增加是敏感度降低的關鍵驅動因素。

The interest rate hedges are particularly important as they provide immediate income in addition to moving the balance sheet more towards neutral. Bottom line, we executed well on this strategy and expect to continue to improve in this area. Slide 16 provides more detail on our CDs. Total CDs are about $2 billion or 1/3 of the total deposits at June 30th 2023.

利率對沖尤其重要，因為它們除了使資產負債表更趨於中性之外，還能提供直接收入。最重要的是，我們在這項策略上執行得很好，並期望在這一領域繼續改進。幻燈片 16 提供了有關我們 CD 的更多詳細資訊。截至 2023 年 6 月 30 日，CD 總額約為 20 億美元，佔存款總額的 1/3。

CDs helped to lengthen the duration of our funding to match the duration of our assets more closely. Excluding CDs with interest rate hedges, about 60% of our CD portfolio will reprice higher over the next year. We expect to retain a high percentage of our CDs. Our current CD rates range from 4.5% to 5.25%. All else equal, we expect the CD repricing to pressure our net interest margin.

存單有助於延長我們的融資期限，使我們的資產期限更緊密地匹配。不包括具有利率對沖功能的存款證，我們大約 60% 的存款證投資組合將在明年重新定價更高。我們希望保留較高比例的 CD。我們目前的 CD 利率範圍為 4.5% 至 5.25%。在其他條件相同的情況下，我們預期存單重新定價將對我們的淨利差帶來壓力。

Our net charge off history is on Slide 17. As you can see, we have a long history of solid asset quality because of our low risk credit profile and conservative underwriting. Net charge offs of nine basis points returned to normalized levels this quarter. We expect minimal losses in the loan portfolio if there's an economic downturn. Given the large percentage of our loan portfolio is secured by real estate with a low average loan to value.

我們的淨沖銷歷史記錄在投影片 17 上。正如您所看到的，由於我們的低風險信用狀況和保守的承保，我們長期以來一直保持著穩定的資產品質。本季淨沖減 9 個基點恢復至正常水準。如果出現經濟衰退，我們預期貸款組合的損失將降至最低。鑑於我們的貸款組合中很大一部分是由平均貸款價值較低的房地產擔保的。

Additionally, the weighted average debt service coverage is 1.8 times in the multifamily and investor real estate portfolios and 1.2 times in a stress scenario consisting of a 200 basis point increase in the rate and a 10% increase in operating expenses. These factors contribute to our expectation of minimal loss content within the loan portfolio.

此外，多戶型和投資者房地產投資組合的加權平均償債覆蓋率為 1.8 倍，而在利率增加 200 個基點和營運費用增加 10% 的壓力情境下，加權平均償債覆蓋率為 1.2 倍。這些因素有助於我們對貸款組合中的損失內容進行最小化的預期。

Slide 18 shows our credit metrics trending in the right direction with declines in NPAs and an increase in the non-performing loan coverage ratio. Criticized and classified assets decreased during the quarter to a low 71 basis points. Historically, these levels have been significantly below our peers. Our allowance for credit losses is presented by loan segment in the bottom right chart.

投影片 18 顯示我們的信貸指標正朝著正確的方向發展，不良資產下降，不良貸款覆蓋率有所上升。本季受到批評和分類的資產下降至 71 個基點。從歷史上看，這些水平明顯低於我們的同行。我們的信用損失準備金按右下圖表中的貸款部分列出。

The higher risk portfolios have reserves greater than 1% of that portfolio. Overall, the allowance for credit losses to loans ratio increased to 57 basis points during the quarter. Remain very comfortable with our credit risk profile. Our capital position is shown on Slide 19. Book value and tangible book value per share increased year over year. We repurchased nearly 530,000 shares at an average price of $12.94, which is a 43% discount to our tangible book value.

風險較高的投資組合的準備金超過該投資組合的 1%。整體而言，本季信貸損失準備金與貸款比率增至 57 個基點。對我們的信用風險狀況保持非常滿意的態度。我們的資本狀況如投影片 19 所示。每股帳面價值和有形帳面價值逐年增加。我們以 12.94 美元的平均價格回購了近 530,000 股股票，比我們的有形帳面價值折價 43%。

The tangible common equity ratio was stable at 7.71%. Our regulatory capital ratios are strong and overall we view our capital base as a strength and a vital component of our conservative balance sheet. Slide 20 provides our outlook. We do not provide guidance. This discussion is meant to give our high level perspective on performance in the current environment. Despite the robust increase in the loan pipeline, we expect loan growth to remain challenging.

有形普通股比率穩定在7.71%。我們的監理資本比率很高，整體而言，我們認為我們的資本基礎是我們保守的資產負債表的優點和重要組成部分。幻燈片 20 提供了我們的展望。我們不提供指導。這次討論旨在提供我們對當前環境下的績效的高層次看法。儘管貸款管道強勁成長，但我們預計貸款成長仍將充滿挑戰。

However, the higher percentage of back to back swap loans in the pipeline will add more floating rate assets to our balance sheet and these assets have rates at 7% or higher. As a reminder, certain deposits are seasonally lower in the summer months before increasing by year end. There are several factors that will affect the net interest margin. First is the pressure from the Fed raising rates and the natural shift in the deposit mix. Second is the size and growth of the loan portfolio. Third is a repricing of both CDs and certain loans. Fourth, our interest rate hedges were favorable in the second quarter and an increase in rates by the Fed will benefit this portfolio.

然而，醞釀中的背對背掉期貸款比例較高，將為我們的資產負債表添加更多浮動利率資產，而這些資產的利率為 7% 或更高。提醒一下，某些存款在夏季月份會季節性下降，然後在年底增加。有幾個因素會影響淨利差。首先是聯準會升息和存款結構自然轉變的壓力。其次是貸款組合的規模和成長。第三是定期存款和某些貸款的重新定價。第四，我們的利率對沖在第二季度是有利的，聯準會升息將使該投資組合受益。

Overall, we expect net interest margin pressure as the Fed increases rates, but all else equal, the pressure should be lower than what was experienced in the second half of 2022 and the first quarter of 2023. The core net interest margin was 2.19% for the month of June. Non-interest income should benefit from the back to back swap loan closings. Non-interest expenses were well controlled in the second quarter and extra scrutiny is placed on all expenses.

總體而言，我們預期隨著聯準會升息，淨利差將面臨壓力，但在其他條件相同的情況下，該壓力應低於2022年下半年和2023年第一季所經歷的壓力。核心淨息差為2.19%。六月。非利息收入應該會受益於連續的掉期貸款關閉。第二季非利息支出得到了很好的控制，所有支出都受到了額外的審查。

We expect the operating expenses to follow normal seasonal patterns. Lastly, the effective tax rate should approximate 26% to 28% for 2023.

我們預計營運費用將遵循正常的季節性模式。最後，2023 年的有效稅率應約為 26% 至 28%。

On Slide 21, I'll wrap up with our key takeaways. We continue to execute our action plan, which is improving our profitability in the short and medium term and establishing a foundation for long term success. We're happy with the limited NIM compression for the quarter and have significantly improved our sensitivity to higher rates. Our asset quality and liquidity are conservative and sound. We continue to serve our clients and deepen relationships. Our overall financial metrics improved during the quarter, but we're remaining cautious given the environment.

在投影片 21 中，我將總結我們的要點。我們繼續執行我們的行動計劃，這將提高我們中短期的獲利能力，並為長期成功奠定基礎。我們對本季有限的淨利差壓縮感到滿意，並顯著提高了我們對更高利率的敏感度。我們的資產品質和流動性保守且穩健。我們繼續為客戶提供服務並加深關係。我們的整體財務指標在本季有所改善，但鑑於環境，我們仍保持謹慎態度。

The decisive actions we are taking to improve the overall performance will allow us to continue our long and consistent record of dividend payments. Operator I'll turn it over to you to open up the lines for questions.

我們為改善整體績效而採取的果斷行動將使我們能夠繼續維持長期一致的股利支付記錄。接線生 我會將其轉交給您，以開放提問線路。

We will now begin the question and answer session. (Operator Instructions) At this time we'll pause momentarily to assemble our roster.

我們現在開始問答環節。 （操作員指示）此時我們將暫停片刻以集合我們的名單。

(technical difficulty)

（技術難度）

The first question comes from Mark Fitzgibbon with Piper Sandler.

第一個問題來自馬克·菲茨吉本和派珀·桑德勒。

Hey, Susan, just to clarify one of your comments about the margin, you talked about the pressure being more manageable than what we saw in the second half of '22 and the first quarter of '23. Should we take that to mean that the margin you think will be down this quarter or something in the neighborhood of what we saw in the second quarter assuming the Fed raises rates 25 basis points later today?

嘿，蘇珊，只是為了澄清您對利潤率的評論，您談到壓力比我們在 22 年下半年和 23 年第一季看到的更容易管理。我們是否應該認為這意味著您認為本季的利潤率將會下降，或者假設聯準會今天晚些時候升息 25 個基點，我們在第二季度看到的水平會有所下降？

Given where the Fed is in their rate raising cycle, that's a primary driver of that comment. I would expect some compression probably closer to what we've seen in the second quarter than what we had seen in the previous three quarters.

考慮到聯準會處於升息週期的哪個階段，這是該評論的主要驅動力。我預計一些壓縮可能更接近我們在第二季度看到的情況，而不是我們在前三個季度看到的情況。

Secondly, I wondered if you could share with us what iGO balances were at the end of the quarter?

其次，我想知道您能否與我們分享本季末 iGO 餘額是多少？

We are at around $200 million.

我們的資金約為 2 億美元。

John, I wondered if you had any targets for either tangible common equity or CET1 going forward?

約翰，我想知道您是否有任何有形普通股或 CET1 的目標？

Well, I think we want to stay close to that 8% range. Obviously we're not there at this point in time, but we're very cognizant of of the importance there. I think that the Fed stopping its rising interest rates could help us a little bit there in terms of the securities portfolio valuations. We're comfortable where we are right now for the present. I think we'd like to move it up a little bit more.

嗯，我認為我們希望保持在 8% 的範圍附近。顯然我們目前還不在那兒，但我們非常清楚那裡的重要性。我認為聯準會停止升息可能會對我們的證券投資組合估值有所幫助。目前我們對目前所處的位置感到滿意。我想我們想把它再提高一點。

I saw that you had hired a team from Signature Bank. I guess I was curious roughly how large was their book of business and maybe how long you think it takes for them to be able to bring that over to Flushing?

我看到您聘請了 Signature Bank 的團隊。我想我很好奇他們的業務範圍有多大，也許你認為他們需要多長時間才能將其帶到法拉盛？

We're really not disclosing that. It's a group that has a significant basis for their success in the past.

我們真的不會透露這一點。這個群體過去的成功有著重要的基礎。

I wonder if you could share with us the 30-89 day delinquencies. I know they come out in the queue, but if you had those handy, that would be great?

我想知道您能否與我們分享 30-89 天的拖欠情況。我知道他們排在隊列中，但如果你手頭上有這些，那就太好了？

They're down significantly from where they were in the prior period. I don't have them right at my fingertips.

與上一時期相比，它們大幅下降。我手邊沒有它們。

Our next question comes from Chris O'Connell with KBW.

我們的下一個問題來自 KBW 的 Chris O'Connell。

Just to follow up on the on the margin discussion, do you have the spot in for June?

只是為了跟進邊際討論，您有 6 月份的席位嗎？

June was 219.

六月是219。

As far as the hedges that were put on this quarter, what was the timing?

至於本季進行的對沖，時機是什麼？

What do you mean? A duration or which month they were put on. What do you mean by the timing?

你是什​​麼意思？持續時間或投放的月份。你說的時間安排是什麼意思？

I believe last quarter the hedges were put on pretty late in the quarter.

我相信上個季度的對沖是在本季後期進行的。

Here again, they're put on pretty late. They put on in May predominantly.

在這裡，它們又穿得很晚了。他們主要在五月投放。

Do you have the duration?

你有持續時間嗎？

Middle to the end of May.

五月中旬到下旬。

Do you have the duration?

你有持續時間嗎？

They were primarily five years. Three and a half to five.

他們主要是五年。三點半到五點。

Do you have the rate as well?

你也有這個價格嗎？

I think if you look at the presentation, we have the swaps all broken out in there Chris on, I'm flipping through the presentation because I know it's in here. Look at page 15 or so that has a lot of the information on the swaps that you may be looking for.

我想，如果你看一下演示文稿，你會發現我們的交換內容都在克里斯那裡，我正在翻閱演示文稿，因為我知道它就在這裡。請參閱第 15 頁左右，其中包含您可能正在尋找的大量有關掉期的資訊。

Then on the credit side, can you just provide any color around the $1.7 million, I think or so of CNI net charge off this quarter?

那麼在貸方方面，您能否提供大約 170 萬美元的任何顏色，我認為 CNI 本季的淨費用大概是這樣？

It was one relationship that had been downgraded. We've been watching very carefully over the last 6-9 months and, additional information became available that made us realize that the collectibility was questionable and we charged it off.

這是一種被降級的關係。在過去的 6-9 個月裡，我們一直在非常仔細地觀察，並且獲得了更多信息，使我們意識到該收藏品的收藏價值存在問題，因此我們將其註銷。

Is that fully charged off?

是不是已經充飽電了？

Yes.

是的。

I noticed I think the Manhattan office exposure increased to 0.6% of loans from 0.1% last quarter.

我注意到曼哈頓辦公室的貸款比例從上個季度的 0.1% 增加到了 0.6%。

No, the differential is the number we had been quoting in the past was midtown Manhattan office, which is 0.1%. We've expanded it to include really all of Manhattan. That's what the larger number is.

不，差異是我們過去引用的曼哈頓中城辦公室的數字，即 0.1%。我們已將其擴展至真正包括整個曼哈頓。這就是較大的數字。

And for the office?

那麼對於辦公室呢？

We're not doing it. We're not doing office space. Just for the record.

我們不這樣做。我們不做辦公空間。只是為了記錄。

I figured. Yes, that's how it struck my eye. As far as office exposure, I know it's pretty low. I think ballpark $150 million or so. I was just wondering if you had the maturity schedule for how much is coming due, say over the next 12 -18 months? If you have, a specific reserve number against it?

我估計。是的，這就是它引起我注意的方式。就辦公室曝光度而言，我知道它相當低。我認為大約 1.5 億美元左右。我只是想知道你們是否有到期時間表，說明未來 12 -18 個月內到期的金額？如果有的話，有具體的儲備號碼嗎？

I don't think we have a reserve against any of it.

我認為我們對其中任何一個都沒有保留。

Not any additional reserve other than we have against the CRE portfolio in total. We know when these loans will be repricing, etcetera. That's not information we're sharing at this time. They all have a nice debt coverage ratio and have low LTVs.

除了我們針對 CRE 投資組合的準備金總額外，沒有任何額外準備金。我們知道這些貸款何時會重新定價等等。這不是我們目前分享的訊息。它們的債務覆蓋率都很高，而且生命週期價值也很低。

There's nothing unusual about the structure it's typical. Our typical five year.

其典型的結構沒有什麼異常之處。我們典型的五年。

They also have very strong sponsors behind these buildings.

這些建築背後還有非常強大的贊助商。

It sounds like based on the loan pipeline, with all the swaps in the pipeline that banking, service fees, could remain strong year after the pick up quarter over quarter this quarter. Would you expect it to remain in a similar range to that where you saw in Q2 or could it move up a little bit more or is Q2 particularly strong?

聽起來，根據貸款管道，隨著所有正在進行的掉期交易，銀行業、服務費在本季度逐季回升後，今年可能會保持強勁。您是否預計它會保持在與第二季度相似的範圍內，或者是否會上漲一點，或者第二季度特別強勁？

I think if you're looking at our core that we would expect them to go up. Obviously our GAAP non-interest income has the fluctuations from the market valuations included in there, but we would expect our core fees to increase with the number of swaps deals we've been transacting.

我認為如果你專注於我們的核心，我們會期望它們會上升。顯然，我們的公認會計原則非利息收入會因市場估值而波動，但我們預計我們的核心費用會隨著我們交易的掉期交易數量的增加而增加。

Based on what you were discussing on the TC target and relatively low balance sheet growth here and where the stock is trading, how are you thinking about buyback utilization going forward?

根據您在這裡討論的 TC 目標和相對較低的資產負債表增長以及股票交易的情況，您如何考慮未來的回購利用？

Our capital planning has not changed at all, Chris. We still think the best thing to do with our excess capital is to redeploy it into the business to grow, followed by returning to shareholders through the form of dividends and finally share repurchases. We always take look at it and opportunistically take a take a look at the market and see if that's the best place to deploy our capital. Again, growing the business is, that is the first priority with capital.

克里斯，我們的資本規劃根本沒有改變。我們仍然認為，處理多餘資本的最佳方法是將其重新部署到業務中以實現成長，然後透過股息和最後股票回購的形式回報股東。我們總是會觀察它，並機會主義地觀察市場，看看這是否是部署我們資本的最佳地點。再說一遍，發展業務是資本的首要任務。

Taking a step back and thinking about things more strategically. I mean, obviously this quarter, you had good coverage. If NIM is down similar to Q2 levels, things become a little tighter. It seems in the back half of the year. How are you guys thinking about dividend coverage going forward and strategically what are the decision making factors around that?

退後一步，更有策略地思考事情。我的意思是，顯然本季你們的報道不錯。如果淨息差下降到與第二季度水準相似，情況就會變得更加緊張。看來要到下半年了。你們如何看待未來的股利覆蓋率？從戰略上講，圍繞這一點的決策因素是什麼？

We don't see any any any reason to change our dividend policy at this point in time.

目前我們認為沒有任何理由改變我們的股利政策。

Our next question comes from Manuel Navas with D.A. Davidson.

我們的下一個問題來自曼努埃爾·納瓦斯和 D.A.戴維森。

Most of my questions have been answered, but just can you remind me the expected size of deposit seasonality? Is it just going to follow past year trends?

我的大部分問題都已得到解答，但您能否提醒我存款季節性的預期規模？它只是追隨去年的趨勢嗎？

The typical trend is a downturn in seasonal balances in the summer months anywhere from $150 to $200 million. Then as we approach the fall, that starts to rebound.

典型的趨勢是夏季季節性餘額減少 150 至 2 億美元。然後，當我們接近秋天時，情況開始反彈。

What are your current offers on the deposit side in the market?

目前市面上存款方的報價是什麼？

Our CD offerings are about 4.5 to 5.25.

我們的 CD 產品約為 4.5 至 5.25。

You're still seeing solid flows on your offers?

您的報價仍然有穩定的流量嗎？

Yes.

是的。

I guess you talked about the CRE team. What's the pipeline going forward and what are the opportunities you're seeing in marketplace for talent?

我猜你談到了 CRE 團隊。未來的管道是什麼？您在人才市場上看到了哪些機會？

We're always on the outlook. I think that there's, from what we understand, there may be some situations with respect to payments to individuals that may be coming to an end that may present an opportunity for additional staff to come our way.

我們始終著眼於前景。我認為，據我們了解，向個人付款的某些情況可能即將結束，這可能為更多員工提供機會。

Well, Manuel, I just want to emphasize that this team also is deposit gatherers. They're not just loan gatherers. I think that's an important distinction.

嗯，曼努埃爾，我只是想強調，這個團隊也是存款收集者。他們不僅僅是貸款收集者。我認為這是一個重要的區別。

(Operator Instructions)

（操作員說明）

(technical difficulty)

（技術難度）

No further questions. This concludes our question and answer session. I would like to turn the conference back over to John Buran for any closing remarks.

沒有進一步的問題。我們的問答環節到此結束。我想將會議轉交約翰布蘭 (John Buran) 發表閉幕詞。

Well, thank you, everybody, for joining us today on our second quarter 2023 earnings call. We appreciate your continued support of Flushing Financial and look forward to talking to you again next quarter. Thank you very much.

好的，謝謝大家今天參加我們的 2023 年第二季財報電話會議。我們感謝您對法拉盛金融的持續支持，並期待下季再次與您交談。非常感謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。