Flushing Financial Corp (FFIC) 2024 Q2 法說會逐字稿

Welcome to Flushing Financial Corporation's second quarter 2024 earnings conference call.

歡迎參加法拉盛金融公司 2024 年第二季財報電話會議。

Hosting the call today are John Buran, President and Chief Executive Officer; and Susan Cullen, Senior Executive Vice President, Chief Financial Officer, and Treasurer.

今天主持電話會議的是總裁兼執行長 John Buran；蘇珊‧卡倫 (Susan Cullen)，資深執行副總裁、財務長兼財務長。

Today's call is being recorded. (Operator Instructions)

今天的通話正在錄音。（操作員說明）

A copy of the earnings press release and slide presentation that the company will be referencing today are available on its Investor Relations Web site at flushingbank.com. Before we begin, the company would like to remind you that discussions during this call contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those contained in any such statements, including as set forth in the company's filings with the US Securities and Exchange Commission to which we refer you.

該公司今天將引用的收益新聞稿和幻燈片簡報的副本可在其投資者關係網站flushingbank.com上取得。在我們開始之前，本公司想提醒您，本次電話會議中的討論包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。此類聲明受到風險、不確定性和其他因素的影響，這些因素可能導致實際結果與任何此類聲明中包含的結果有重大差異，包括我們向您推薦的公司向美國證券交易委員會提交的文件中所述的內容。

During this call, references will be made to non-GAAP financial measures and supplemental measures to review and assess operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. For information about these non-GAAP measures and for a reconciliation to GAAP, please refer to the earnings release and/or the presentation. I would now like to introduce John Buran, President and Chief Executive Officer, who will provide an overview of the strategy and results.

在本次電話會議中，將參考非公認會計準則財務指標和補充指標來審查和評估營運績效。這些非公認會計原則財務指標不應被孤立考慮，也不能取代根據美國公認會計原則準備和提交的財務資訊。有關這些非公認會計準則衡量標準以及與公認會計準則的調節的信息，請參閱收益發布和/或簡報。我現在想介紹總裁兼執行長約翰·伯蘭 (John Buran)，他將概述該策略和結果。

Please go ahead.

請繼續。

Thank you, operator. Good morning, and thank you for joining us for our second quarter 2024 earnings call.

謝謝你，接線生。早安，感謝您參加我們的 2024 年第二季財報電話會議。

The operating environment in the second quarter was highlighted by similar themes that have impacted the industry and our markets for the past couple of quarters. Changing expectations on fed rate moves, weak but marginally improving loan demand, and aggressive deposit pricing by one of our largest competitors that is dealing with business model and personnel changes.

第二季的營運環境突顯了過去幾季影響產業和市場的類似主題。對聯準會利率變動的預期不斷變化，貸款需求疲軟但略有改善，以及我們最大的競爭對手之一正在處理業務模式和人事變動的激進存款定價。

Against this backdrop, the company reported second quarter 2024 EPS of $0.18. It remains a challenging rate environment but I'll provide an update on the progress we've made on our four areas of focus. The first objective is to increase the NIM and reduce its volatility. Net interest income increased about 1% quarter over quarter despite NIM compressing 1 basis point. We're implementing several strategies to help the NIM in future periods and I believe it is close to a bottom. Susan will provide further details but the NIM should begin to expand once funding costs stabilize.

在此背景下，該公司報告 2024 年第二季每股收益為 0.18 美元。這仍然是一個充滿挑戰的利率環境，但我將提供我們在四個重點領域的進展的最新資訊。第一個目標是增加淨利差並降低其波動性。儘管淨利差壓縮 1 個基點，但淨利息收入較上季成長約 1%。我們正在實施多項策略來幫助 NIM 在未來一段時間內，我相信它已接近底部。蘇珊將提供更多細節，但一旦融資成本穩定下來，NIM 就應該開始擴大。

The second objective is to maintain our credit discipline. Flushing Bank has a long history of low risk credit profile due to our conservative underwriting and strong portfolio management. Overall credit metrics remain solid with 61 basis points of non-performing assets, 113 basis points of criticized and classified loans, and 1 basis point of net recoveries during the quarter.

第二個目標是維持我們的信用紀律。由於我們保守的核保和強大的投資組合管理，法拉盛銀行長期以來一直保持低風險信用狀況。整體信貸指標保持穩健，本季不良資產上升 61 個基點，批評和分類貸款上升 113 個基點，淨回收上升 1 個基點。

Our loan portfolio remains well collateralized as the average LTV in the real estate portfolio is less than 36% and the debt coverage ratios are 1.8 times for our multifamily and investor commercial real estate portfolios. Our exposure to Manhattan office buildings is about 50 basis points of gross loans. There are zero non-performing office loans and zero non-performing non-residential commercial real estate loans.

我們的貸款組合仍然擁有良好的抵押，因為房地產投資組合中的平均 LTV 低於 36%，而我們的多戶住宅和投資者商業房地產投資組合的債務覆蓋率為 1.8 倍。我們對曼哈頓辦公大樓的曝險約為貸款總額的 50 個基點。辦公室不良貸款為零，非住宅商業不動產不良貸款為零。

Our third objective is to preserve our strong liquidity and capital. Our available liquidity was $3.1 billion as of June 30 and our level of uninsured and uncollateralized deposits remains low. Our capital ratios remain solid.

我們的第三個目標是維持強大的流動性和資本。截至 6 月 30 日，我們的可用流動性為 31 億美元，我們的無保險和無抵押存款水準仍然很低。我們的資本比率保持穩健。

The fourth objective is to bend the expense curve. The market provided an opportunity to add banking professionals in new branches so we made a strategic decision to invest in the franchise. This drove non-interest expense growth for the first half of 2024 compared to the same period in 2023 to about 6%. We expect overall expense growth in 2024 to be in line with our historical averages of mid-single digits. Overall, we're navigating the environment from building a foundation to achieve our long-term goals and improve overall profitability.

第四個目標是彎曲費用曲線。市場提供了在新分行增加銀行專業人士的機會，因此我們做出了投資特許經營權的策略決策。這推動2024年上半年非利息支出較2023年同期成長至6%左右。我們預計 2024 年的整體費用成長將與我們中個位數的歷史平均值一致。總體而言，我們正在從建立基礎到實現我們的長期目標並提高整體盈利能力來應對環境。

Slide 4 demonstrates Flushing's credit performance versus the industry. Our underwriting has outperformed over time often by a wide margin. Our conservative credit culture has been proven in many rate and economic cycles and our commitment to our low risk credit profile is unwavering. Our charge-off history is shown in the chart on the left. We expect our net charge-offs to remain well below industry levels.

幻燈片 4 展示了法拉盛相對於行業的信用表現。隨著時間的推移，我們的核保表現往往大幅領先。我們保守的信貸文化已在許多利率和經濟週期中得到證明，我們對低風險信貸狀況的承諾堅定不移。我們的沖銷歷史記錄如左圖所示。我們預計我們的淨沖銷將繼續遠低於行業水平。

For the first half of 2024, we had net recoveries of $88,000. Our level of non-current loans to total loans is also favorable compared to the industry. In a stress scenario, consisting of a 200-basis-point increase in rates and a 10% increase in operating expenses, our loan portfolio has a debt coverage ratio of 1.3 times. Given this, we're expecting minimal loss content within the portfolio.

2024 年上半年，我們的淨追討金額為 88,000 美元。與業界相比，我們的非流動貸款佔總貸款的水平也較好。在利率增加 200 個基點和營運費用增加 10% 的壓力情境下，我們的貸款組合的債務覆蓋率為 1.3 倍。有鑑於此，我們預期投資組合中的損失將降至最低。

Slide 5 depicts additional credit metrics that support our conservative risk culture. Non-performing assets to assets totaled 61 basis points with LTVs of low 44%. Our level of criticized and classified assets remain solid and we expect them to continue to be below peer levels again for the quarter.

投影片 5 描述了其他支持我們保守的風險文化的信用指標。不良資產與資產比率總計 61 個基點，LTV 低至 44%。我們的批評和分類資產水準仍然穩定，我們預計本季它們將繼續低於同業水準。

30 to 89 day past dues are only 35 basis points of loans indicating a low level of potential future problems. Our allowance for credit losses is presented by loan segment in the bottom right chart and the ratio to overall loans increased 1 basis point to 61 basis points quarter over quarter. These items altogether keep us very confident of our low risk credit profile.

逾期 30 至 89 天的貸款僅佔貸款的 35 個基點，顯示未來潛在問題的程度較低。我們的信用損失準備金按右下圖表中的貸款部分列出，與整體貸款的比率環比增加 1 個基點至 61 個基點。這些項目共同使我們對我們的低風險信用狀況充滿信心。

Slide 6 outlines some key credit metrics at a more granular level. Our multifamily portfolio comprises 39% of gross loans and has strong credit metrics like a weighted average LTV of 44% and a weighted average debt coverage ratio of 1.8 times. Non-performing loans in this portfolio are only 52 basis points and criticized and classified loans are only 67 basis points of loans. The average loan size is $1.2 million in this $2.6 billion portfolio.

幻燈片 6 更詳細地概述了一些關鍵信用指標。我們的多戶型投資組合佔總貸款的 39%，並擁有強大的信貸指標，例如 44% 的加權平均 LTV 和 1.8 倍的加權平均債務覆蓋率。該組合中的不良貸款僅為52個基點，批評和分類貸款僅為貸款的67個基點。在這個 26 億美元的投資組合中，平均貸款規模為 120 萬美元。

Investor commercial real estate loans totaled 28% of gross loans and have similar credit metrics as our multifamily loans with no non-performing loans. Only 36 basis points of criticized and classified loans and an average loan size of $2.5 million.

投資者商業房地產貸款總計佔貸款總額的 28%，其信用指標與我們的多戶家庭貸款相似，無不良貸款。受到批評和分類的貸款只有 36 個基點，平均貸款規模為 250 萬美元。

Our exposure to office loans is small at less than 4% and Manhattan office building exposure is about 50 basis points to gross loans. There are zero non-performing loans in the office portfolio and the debt coverage ratio is 1.9 times. These metrics provide a clear representation of our conservative and strong credit culture that has and continues to perform well over time.

我們的辦公室貸款風險較小，不到 4%，而曼哈頓辦公室貸款風險約為總貸款的 50 個基點。辦公室組合不良貸款為零，負債覆蓋率為1.9倍。這些指標清楚地體現了我們保守而強大的信用文化，隨著時間的推移，這種文化已經並將繼續表現良好。

Slide 7 provides further context on the risk in our multifamily portfolio and a comparison versus peers. As of March 31, 2024, our criticized and classified multifamily loans were only 54 basis points, the third best in the peer group. At the end of the second quarter, this ratio was 67 basis points.

投影片 7 進一步介紹了我們多戶型投資組合的風險以及與同業的比較。截至 2024 年 3 月 31 日，我們的批評和分類多戶貸款僅為 54 個基點，在同業中排名第三。第二季末，這比率為67個基點。

Multifamily reserves to criticized and classified multifamily loans were 75%, which is the fourth best in the peer group in the first quarter and 61% in the second quarter. 30 to 89 day past dues in our multifamily portfolio were only 21 basis points. With these credit metrics, we see limited risk and loss content on the horizon.

多戶家庭對受到批評和分類的多戶家庭貸款的準備金率為 75%，第一季在同業中排名第四，第二季為 61%。我們的多戶型投資組合的逾期 30 至 89 天的欠款僅為 21 個基點。透過這些信用指標，我們看到有限的風險和損失內容。

I'll now turn it over to Susan to provide more detail on our other financial metrics.

現在我將把它交給蘇珊，以提供有關我們其他財務指標的更多詳細資訊。

Susan?

蘇珊？

Thank you, John. I'll begin on slide 8, which provides more detail on our deposits. Average deposits increased 4% year-over-year and 2% quarter-over-quarter. The growth in deposits came from both retail and broker CDs as we utilized them to fund approximately $300 million in the growth of floating rate securities for the quarter and to replace anticipated normal flows of the government deposit portfolio.

謝謝你，約翰。我將從幻燈片 8 開始，其中提供了有關我們存款的更多詳細資訊。平均存款年增 4%，季增 2%。存款的成長來自零售和經紀商存款證，因為我們利用它們為本季浮動利率證券的成長提供了約 3 億美元的資金，並取代了政府存款組合的預期正常流量。

We expect those latter deposits to return in the fall. Average non-interest bearing deposits were 11% of total average deposits compared to 12% a year ago. Our loan-to-deposit ratio has improved to 98% from 102% a year ago. The cost of deposits increased 11 basis points in the quarter compared to 17 basis points in the first quarter and 16 basis points in the fourth quarter of 2023.

我們預計後者的存款將在秋季返回。平均無息存款占平均存款總額的 11%，去年同期為 12%。我們的貸存比從一年前的102%提升到98%。本季存款成本增加了 11 個基點，而 2023 年第一季為 17 個基點，第四季為 16 個基點。

Slide 9 outlines the net interest income and margin trends. The GAAP and core net interest margin comprised 1 and 3 basis points respectively to 2.05% and 2.03%. Absent episodic items and NIM increased 1 basis point quarter over quarter. Our net interest margin is partially reflective of the spread between the one month SOFR relative to the five-year Federal Home Loan Bank advance rate, which at the end of June was a negative 82 basis points.

投影片 9 概述了淨利息收入和利潤率趨勢。GAAP 和核心淨利差分別上升 1 個和 3 個基點，達到 2.05% 和 2.03%。剔除偶發性項目後，淨利差較上季成長 1 個基點。我們的淨利差部分反映了一個月期 SOFR 相對於五年期聯邦住房貸款銀行預付利率之間的利差，截至 6 月底，預付利率為負 82 個基點。

Once the spread begins to turn positive, our NIM should improve over time. We expect our NIM is near bottom absent any changes in interest rates. The bottom will largely be determined by stabilization of the cost of funds, which will then allow the natural repricing of our loan portfolio to drive NIM expansion. With a parallel shift in today's inverted yield curve by 100 basis points, our model indicates a roughly 1% benefit to net interest income. On the other hand, a steepening of the yield curve by 100 basis points with the short end declining and the long end remaining stable should benefit net interest income by greater than $15 million over time.

一旦利差開始轉正，我們的淨利差就會隨著時間的推移而改善。我們預計，在利率沒有任何變化的情況下，我們的淨利差接近底部。底部很大程度上取決於資金成本的穩定，這將使我們的貸款組合自然重新定價，從而推動淨利差擴張。隨著今天的反向殖利率曲線平行移動 100 個基點，我們的模型顯示淨利息收入將受益約 1%。另一方面，如果殖利率曲線陡峭 100 個基點，且短期端下降而長期端保持穩定，那麼隨著時間的推移，淨利息收入將有超過 1500 萬美元的收益。

Slide 10 provides more detail on our CD portfolio. Total CDs are over $2 billion or 35% of total deposits at quarter's end. It is the growth in repricing of CDs which will drive the direction and magnitude of cost of deposits. About $1.4 billion of retail CDs are expected to mature over the next three quarters at a weighted average rate of 4.86%, which compares to current APYs of 4.85% to 5.40%. We expect the cost of deposits will increase at a slower pace in third quarter compared to the second quarter.

投影片 10 提供了有關我們 CD 產品組合的更多詳細資訊。截至季末，存款證總額超過 20 億美元，佔存款總額的 35%。存款證重新定價的成長將推動存款成本的方向和幅度。預計約 14 億美元的零售 CD 將在未來三個季度到期，加權平均利率為 4.86%，而當前年化年利率為 4.85% 至 5.40%。我們預計第三季存款成本成長將較第二季放緩。

Slide 11 provides more detail on the contractual repricing of the loan portfolio. Approximately $1.2 billion or 18% of gross loans are repriced to a short term index. Our interest rate hedge position increases as a percentage to 26%. For the remainder of 2024, $383 million of loans are due to reprice 242 basis points higher than the current coupon rate. In 2025, approximately $765 million of loans are scheduled to reprice 226 basis points higher. These rates are based on underlying index value at June 30, 2024. It is this loan pricing that should drive net interest margin expansion once funding costs stabilize or decline.

投影片 11 提供了有關貸款組合合約重新定價的更多細節。約 12 億美元或總貸款的 18% 根據短期指數重新定價。我們的利率對沖頭寸百分比增加至 26%。在 2024 年剩餘時間內，3.83 億美元的貸款將重新定價，比目前票面利率高出 242 個基點。到 2025 年，約 7.65 億美元的貸款預計將重新定價提高 226 個基點。這些費率是基於 2024 年 6 月 30 日的基礎指數值。一旦融資成本穩定或下降，這種貸款定價應該會推動淨利差擴大。

Turning to Slide 12, which outlines our interest rate hedging portfolio. This portfolio totaled to $1.7 billion and underlying financial instruments are investment securities, loans, and funding. These hedges have a positive impact in asset and funding yields and are additive to the net interest margin. There are no maturities in 2024 with 22% of the portfolio maturing in 2025. As mentioned previously, if the curve steepens with the Fed reducing short-term rates, our net interest margin should benefit over time.

轉向投影片 12，其中概述了我們的利率對沖投資組合。該投資組合總額達 17 億美元，基礎金融工具包括投資證券、貸款和融資。這些對沖對資產和融資收益率產生正面影響，並增加淨利差。2024 年沒有到期，其中 22% 的投資組合將於 2025 年到期。如前所述，如果曲線隨著聯準會降低短期利率而變得陡峭，我們的淨利差應該會隨著時間的推移而受益。

Our capital position is shown on Slide 13. Book value and tangible book value per share was stable year over year and quarter over quarter. The leverage ratio was over 8% while the tangible common equity ratio remains about 7%. Overall, we view our capital base as a source of strength and a vital component of our conservative balance sheet.

我們的資本狀況如投影片 13 所示。每股帳面價值和有形帳面價值較去年同期穩定。槓桿率超過8%，有形普通股比率維持在7%左右。整體而言，我們認為我們的資本基礎是力量的源泉，也是我們保守的資產負債表的重要組成部分。

Slide 14 provides detail on our Asian markets, which account for a third of our branches. We have over $1.3 billion of deposits and $746 million of loans in these markets. These deposits are 18% of total deposits and while we have only 3% market share of this $41-billion market implying there's substantial room for growth. Our approach to this market is supported by our multilingual staff, our Asian Advisory Board, and support of cultural activities through participation and corporate sponsorships. We look forward to participating in the Dragon Boat Festival this coming weekend, which is attended by thousands of people in Flushing Meadows Park. This market with its dense population and a high number of small businesses continues to be an important opportunity for us and one that we believe will drive our success moving forward.

幻燈片 14 詳細介紹了我們的亞洲市場，該市場占我們分支機構的三分之一。我們在這些市場上擁有超過 13 億美元的存款和 7.46 億美元的貸款。這些存款佔存款總額的 18%，雖然我們在這個 410 億美元的市場中只佔 3% 的市場份額，但這意味著還有很大的成長空間。我們的多語言員工、亞洲顧問委員會以及透過參與和企業贊助對文化活動的支持為我們進入這個市場提供了支持。我們期待著參加即將到來的周末端午節，法拉盛草地公園將有數千人參加。這個人口密集、小企業數量眾多的市場對我們來說仍然是一個重要的機會，我們相信它將推動我們取得成功。

On slide 15, you can see community involvement is a key part of our strategy beyond just our Asian franchise. During the second quarter, we participated in numerous local events to strengthen our ties to our customer base. Participating in these types of initiatives have served us as a great way to further integrate ourselves within our local communities while driving customer loyalty.

在投影片 15 上，您可以看到社區參與是我們策略的關鍵部分，而不僅僅是我們的亞洲特許經營權。第二季度，我們參加了許多當地活動，以加強與客戶群的聯繫。參與這些類型的措施為我們提供了一種很好的方式，可以進一步融入當地社區，同時提高客戶忠誠度。

Slide 16 provides a high level perspective on performance in the current environment. We continue to expect stable loan balances and a continued emphasis on improving the funding mix. The net interest margin is expected to be close to bottom but influenced by the mix of the assets and liabilities, the shape of the yield curve, and pricing of financial instruments. The increase in loan pipeline should help increase asset yields while the cost of funding rises at a slower pace than previous quarters.

投影片 16 提供了有關當前環境中效能的高層次視角。我們繼續預期貸款餘額穩定，並繼續重視改善融資結構。淨息差預計接近底部，但受到資產負債結構、殖利率曲線形狀和金融工具定價的影響。貸款管道的增加應有助於提高資產收益率，而融資成本的成長速度將低於前幾季。

When the cost of funds stabilize, our net interest margin should bottom out and then start to increase. Non-interest income should be aided by the closing of back-to-back swap loans that are in the pipeline. As John mentioned previously, we have made the strategic decision to invest in the business by adding people and branches. Core non-interest expense is expected to increase mid-single digits in 2024. While the quarterly tax rates can fluctuate, we expect the mid-20s effective rate for 2024.

當資金成本穩定後，我們的淨利差應該會見底，然後開始上升。非利息收入應該透過結束正在醞釀中的背對背掉期貸款來幫助。正如約翰之前提到的，我們已經做出了透過增加人員和分支機構來投資業務的策略決策。預計 2024 年核心非利息支出將成長中個位數。雖然季度稅率可能會波動，但我們預計 2024 年的有效稅率為 20 多歲。

I'll now turn it back over to you, John.

我現在把它交還給你，約翰。

Thank you, Susan.

謝謝你，蘇珊。

On slide 17, I will conclude with our key takeaways. Our near term priorities remain on our four areas of focus to help build a strong foundation for improved, long-term profitability. The net interest margin is nearing the bottom and should begin to expand. There's no change in our credit discipline or our low-risk credit profile.

在投影片 17 中，我將總結我們的要點。我們的近期優先事項仍然是我們的四個重點領域，以幫助為提高長期盈利能力奠定堅實的基礎。淨息差已接近底部，並應開始擴大。我們的信用紀律或低風險信用狀況沒有改變。

Capital and liquidity are strong. We are mindful of expenses but we'll continue to invest in the franchise to improve the long-term profitability and value. While the rate environment remains challenging, we're controlling what we can control and setting the foundation for a better future.

資本和流動性強勁。我們專注於費用，但我們將繼續投資特許經營權，以提高長期獲利能力和價值。儘管利率環境仍然充滿挑戰，但我們正在控制我們可以控制的事情，並為更美好的未來奠定基礎。

Operator, I'll turn it over to you to open the lines for questions.

接線員，我將把它交給您來打開提問線路。

(Operator Instructions)

（操作員說明）

Steve Moss, Raymond James.

史蒂夫·莫斯，雷蒙德·詹姆斯。

Maybe just starting off with the loan pipeline here, John, pretty big increase quarter over quarter, and wondering just give some color about the drivers you're seeing there?

也許只是從這裡的貸款管道開始，約翰，季度比季度增長相當大，並且想知道對您在那裡看到的驅動因素進行一些描述？

Sure. Basically, what's occurring is that the market appears to be opening up somewhat. We are maintaining our disciplined focus with respect to credit perspective and also with respect to rates. But it just appears that we've just seen some opening up of the market. I think the borrowers maybe are waiting a little -- or are getting a little bit tired of waiting on the sidelines. And also we've seen some activity in doing back-to-back swaps. The rate environment got a little bit better for that and I think that has generated some additional interest as well.

當然。基本上，正在發生的事情是市場似乎有所開放。我們在信貸觀點和利率方面保持嚴格的關注。但看起來我們剛剛看到市場的一些開放。我認為借款人可能正在等待，或者已經厭倦了在場邊等待。我們也看到了一些進行背靠背交換的活動。利率環境因此變得更好，我認為這也產生了一些額外的興趣。

Okay, that's helpful.

好的，這很有幫助。

And just curious is it more C&I versus CRE just curious about the mix there?

只是好奇 C&I 與 CRE 是否更多，只是好奇那裡的混合情況？

More C&I than what we've historically been doing.

C&I 比我們以往所做的更多。

Okay, great.

好的，太好了。

And then in terms of the multifamily non-performers this quarter, just curious what color you can give around what caused those issues and how you're thinking about resolution there?

然後，就本季表現不佳的多戶家庭而言，只是好奇您可以對造成這些問題的原因給出什麼顏色，以及您如何考慮解決這些問題？

So we're pretty confident that there's very low loss content here. One of the items, it's $9 million for loans. One of the items is a loan that's gone past maturity and we're working on the extension now. And then the largest of the loans has a 21% loan to value. So we're very confident there as well.

所以我們非常有信心這裡的損失含量非常低。其中一項是900萬美元的貸款。其中一項是已過期的貸款，我們現在正在努力延期。其中最大的一筆貸款佔貸款價值的 21%。所以我們對此也非常有信心。

And that just went dark for a while. So we're getting our -- we'll be collecting our default interest on that given loan to value on that property.

那隻是暫時黑暗了。因此，我們將根據該房產的價值收取該貸款的違約利息。

Default interest by the way is 24%.

順便說一句，預設利息是24%。

Right, okay.

對了，好吧。

And then in terms of just the multifamily loans that are coming up for renewal and resetting at a higher rate here. Just curious, what's the blended debt service coverage ratio? I know you guys have a 1.3 example in the deck. Is that basically reflective of the entire pool that's repricing in the quarter?

然後就多戶家庭貸款而言，這些貸款即將以更高的利率續約和重置。只是好奇，混合償債覆蓋率是多少？我知道你們的牌組中有一個 1.3 的例子。這基本上反映了本季重新定價的整個池子嗎？

Yeah, that's the entire portfolio that's repricing, it's 1.3.

是的，這就是重新定價的整個投資組合，是 1.3。

Okay, great. And just one last one from me.

好的，太好了。還有我的最後一張。

I noticed that investment securities were up meaningfully this quarter. Just curious what types of securities you bought and the coupon there?

我注意到本季投資證券大幅上漲。只是好奇您購買了哪些類型的證券以及那裡的優惠券？

We've purchased adjustable rate mortgage backed and CLOs that have average rate of a little over 6.5% right now, closer to 6.75%

我們購買了可調整利率抵押貸款支援和 CLO，目前平均利率略高於 6.5%，接近 6.75%

Mark Fitzgibbon, Piper Sandler.

馬克·菲茨吉本，派珀·桑德勒。

I guess I was curious, how much in multifamily in CRE loans do you have maturing in the second half of '24? And maybe if you could give us a sense for what the average rate on those looks like?

我想我很好奇，你們有多少 CRE 貸款在 24 年下半年到期？也許您能讓我們了解一下這些的平均費率是多少？

So it's about $350 million and they'd be priced upwards of 200 basis points, it's about $383 million.

因此，大約為 3.5 億美元，而它們的定價將高達 200 個基點，約為 3.83 億美元。

So you think they'll reprice -- the commercial real estate multifamily up about 200 basis points on average?

那麼您認為他們會重新定價——商業房地產多戶住宅平均上漲約 200 個基點？

Yes, looking at slide 11 of our deck, Mark, if you want complete color, it's about 242 basis points using the June 30 five-year Federal Home Loan Bank rate.

是的，看看我們的幻燈片 11，馬克，如果您想要完整的顏色，使用 6 月 30 日的五年期聯邦住房貸款銀行利率大約為 242 個基點。

Okay, great.

好的，太好了。

And Susan, can you give us a sense for what you think each 25-basis-point rate cut would do to your net interest margin, what impact roughly that would have?

蘇珊，您能否告訴我們您認為每次 25 個基點的降息會對您的淨利差產生什麼影響，大致會產生什麼影響？

I think, we've said in the past that if we reprice everything immediately, it would be about $1 million.

我想，我們過去說過，如果我們立即重新定價，價格約為 100 萬美元。

For each 25 basis points?

每25個基點？

For each 25 basis points.

每25個基點。

That would be over time though, right, that's not an immediate $1 million impact that would be when the whole book reprice?

不過，這會隨著時間的推移而發生，對吧，當整本書重新定價時，這不會立即產生 100 萬美元的影響嗎？

Right, it would be over time and assuming that we were able to -- there's no lag on cutting the cost on the liabilities.

是的，這會隨著時間的推移而發生，假設我們能夠——削減負債成本不會有任何滯後。

Okay. And then on -- I guess, I was curious why grow the securities portfolio almost $400 million if your pipelines are so strong, why not wait and book loans at better spreads?

好的。然後，我想，我很好奇，如果您的管道如此強大，為什麼要將證券投資組合增加近 4 億美元，為什麼不等待並以更好的利差預訂貸款呢？

Well, we decided to -- when we started that process of purchasing securities, the loan pipeline was just beginning to grow. So we're looking at the securities since they're floating rate securities as being a potential source of liquidity going forward as the loan pipeline begins to close. There's a fair amount of uncertainty about closing of loans even though the pipeline is up roughly 88%. So there's been a little bit of a longer tail than what we've seen in the past.

好吧，我們決定——當我們開始購買證券的過程時，貸款管道才剛開始成長。因此，我們正在研究這些證券，因為它們是浮動利率證券，隨著貸款管道開始關閉，它們將成為未來流動性的潛在來源。儘管貸款數量增加了約 88%，但貸款結束仍存在相當大的不確定性。所以尾巴比我們過去看到的要長一些。

We don't anticipate any (technical difficulty) growth, Mark. So as John said, those pipeline starts to close when they shed some of those securities.

馬克，我們預計不會有任何（技術難度）成長。正如約翰所說，當他們拋售一些證券時，這些管道就開始關閉。

Okay. And then last question year to date the dividend payout ratio has been about 148%. At what point do you think about reducing the dividend?

好的。最後一個問題，今年迄今，股息支付率約為 148%。您在什麼時候考慮減少股息？

We're well capitalized low risk business. We see ourselves closer to the end rather than the beginning of our earnings pressure given the natural repricing of loans and also let's say heightened potential for fed easing. So our focus is going to be on -- working on the earnings and maintaining our strong commitment to return value to the shareholders.

我們是資本充足的低風險業務。鑑於貸款的自然重新定價以及聯準會寬鬆政策的可能性加大，我們認為我們的獲利壓力已經接近結束，而不是開始。因此，我們的重點將放在——致力於獲利並維持我們為股東回報價值的堅定承諾。

Correct me if I'm wrong though, there's a regulatory requirement after a certain number of quarters and not earning the dividend where you're basically precluded from keeping it at that level. Is that -- could you remind us what that is?

如果我錯了，請糾正我，監管要求在一定數量的季度之後並且不賺取股息，你基本上無法將其保持在該水平。那是——你能提醒我們那是什麼嗎？

That's not correct. We're not precluded. There's open dialog and two-way communication going on with the regulators on a regular basis and the criteria I'm sure are associated with our capitalization. The fact that we have enough cash at the holding company to allow us to pay a dividend without constricting bank capital at all. And once again, we see the situation has improved from where it was a number of quarters ago as earnings -- NIM is closer to a bottom.

這是不正確的。我們並不被排除在外。我們定期與監管機構進行公開對話和雙向溝通，我確信這些標準與我們的資本化有關。事實上，我們在控股公司擁有足夠的現金，使我們能夠在不限制銀行資本的情況下支付股息。我們再次看到，隨著利潤——淨利差（NIM）接近底部，情況比幾個季度前有所改善。

Manuel Navas, D.A. Davidson.

曼努埃爾·納瓦斯，D.A.戴維森。

I'm sorry. Did you talk about the near-term NIM outlook a little bit? I know there's a little better seasonality of deposits coming in, that pipeline is going to help on the loan growth side or at least replacing some loans with higher yields. Can you just talk through the near-term NIM movements?

對不起。您是否談過近期的淨利差前景？我知道存款的季節性有所改善，這將有助於貸款成長，或至少用更高的收益率取代一些貸款。能簡單談談近期的NIM走勢嗎？

Sure. I think in the near term, we may see a little bit more pressure before the actual turnaround but we're very close to a bottom. Clearly, this particular quarter some of the increases in the funding costs were associated with some aggressive competition that was taking place from one of our major competitors. That maybe in the background. And if that's the case, we'll continue to see better opportunities to reduce or -- maintain or reduce our funding costs.

當然。我認為在短期內，在實際扭轉之前我們可能會看到更大的壓力，但我們已經非常接近底部了。顯然，本季融資成本的部分增加與我們的主要競爭對手之一正在進行的激烈競爭有關。這也許是在後台。如果是這樣的話，我們將繼續看到更好的機會來減少或維持或減少我們的融資成本。

And that's really the major -- has been the major driver of the NIM compression for us. So again, we're close to a bottom and we're seeing the next few quarters as being able to actualize that and move forward with some NIM improvement. Incidentally, the NIM improvement with a reduction on the short end of the curve could yield us over time and 100 basis points drop on the short end of the curve over time can yield us as much as $15 million in income -- in net interest income.

這確實是主要的——一直是我們 NIM 壓縮的主要驅動力。因此，我們再次接近底部，我們預計未來幾季能夠實現這一點，並在淨利差方面取得一些改進。順便說一句，隨著時間的推移，隨著曲線短端的減少，NIM 的改善可能會為我們帶來收益，而隨著時間的推移，曲線短端下降100 個基點可以為我們帶來高達1500 萬美元的收入（淨利息收入） 。

Is that more weighted to the third and fourth cut? How should I think about the initial cuts with that benefit? Can you just talk through that a little bit (multiple speakers)--?

第三次和第四次切割的權重是否較大？我該如何考慮最初的削減帶來的好處？能簡單談談嗎（多位發言者）--？

It's dependent upon the movement of the curve. So as the curve, let's say, flattens out if the fed decides to reduce the short end or as it steepens, it's really the pitch of that curve is going to give us the greatest opportunity.

它取決於曲線的運動。因此，假設，如果聯準會決定減少短期資金，或者隨著曲線變陡，曲線就會變平，曲線的斜度實際上會為我們帶來最大的機會。

You talked about a little bit better maybe just activity in market on the loan growth side. Did you get a sense that a rate cut would even boost that further, does it depend on a rate cut? Just thoughts on just the origination side for loans.

您談到了更好的一點，也許只是貸款成長的市場活動。您是否感覺到降息甚至會進一步推動這一趨勢，這是否取決於降息？只是考慮貸款的發起方。

Clearly, there are borrowers on the sidelines due to the rate environment, which obviously any changes could be helpful. Although, if the longer end of the curve doesn't move, we may be in a similar situation as we are today. But there would be opportunities with respect to maybe shorter duration credits. For example, the C&I portfolio or three year rather than five year resets.

顯然，由於利率環境的原因，有借款人處於觀望狀態，這顯然任何變化都可能有所幫助。不過，如果曲線較長的一端不動，我們可能會遇到與今天類似的情況。但可能會有較短期限的信貸機會。例如，C&I 投資組合或三年而不是五年重置。

Chris O'Connell, KBW.

克里斯·奧康奈爾，KBW。

So I was hoping you could start off with just on the securities investments from the quarter. Were those locked in against a certain rate on the borrowing side? And if so can you disclose what rate?

所以我希望你能從本季的證券投資開始。這些資金是否被借款方以一定的利率鎖定？如果是這樣，你能透露利率是多少嗎？

No, they were not locked in into anything particular.

不，他們並沒有被任何特定的事物所束縛。

So just regular short-term borrowings?

那麼只是定期短期借款嗎？

There are deposit growth and there are short-term borrowings, but as we said they are floating rate securities.

有存款成長和短期借款，但正如我們所說，它們是浮動利率證券。

And what portion after last couple of quarters of investments is the total floating rate or adjustable rate portion of the securities portfolio?

過去幾季的投資之後，證券投資組合中浮動利率或可調利率部分的總比例是多少？

About two-thirds.

大約三分之二。

Great.

偉大的。

And thinking about longer term strategy a little bit more broadly. One, do you guys -- can you guys say when your last regulatory exam was and whether the discussions with the regulators in the recent exam from the past couple has changed at all on the CRE concentration ratios? And just any color around that discussion with regulators relative to what it's been in the past given the heightened industry concern more recently?

並更廣泛地思考長期戰略。第一，你們能說一下你們上次監管考試是什麼時候嗎？鑑於最近行業擔憂加劇，與過去的討論相比，與監管機構的討論有何色彩？

Chris, we continue to have conversations with our regulators. We don't necessarily disclose, we've had our exams and something came out of that as we said (inaudible). But our conversations around our CRE concentration have not changed much over the years even given this heightened environment.

克里斯，我們將繼續與監管機構進行對話。我們不一定要透露，我們已經進行了考試，正如我們所說的，結果出來了（聽不清楚）。但多年來，即使在這種嚴峻的環境下，我們圍繞 CRE 重點的討論也沒有太大變化。

And is there a level of -- a target level either medium term or longer term that you guys want to get to on the terminal mix for the loan portfolio?

你們希望貸款組合的最終組合達到一個中期或長期的目標水準嗎？

The real estate will -- yes, we do want to bring in more C&I loans and bring the CRE concentration down. But as we talked about, we've moved $90 million out of the bank to the holding company late last year. So by natural accretion of capital that ratio will come down. That being said, we do want to focus on the C&I business as we move forward, recognizing that real estate is still a really great asset and it's done very well for us. We have great credit metrics but the market's changed a little bit and we're going to adapt to that.

房地產將——是的，我們確實希望引入更多的工商業貸款，並降低商業房地產的集中度。但正如我們所說，去年年底我們已將 9,000 萬美元從銀行轉移到控股公司。因此，透過資本的自然增值，該比率將會下降。話雖這麼說，我們確實希望在前進的過程中專注於工商業業務，因為我們認識到房地產仍然是一項非常好的資產，而且對我們來說效果很好。我們有很好的信用指標，但市場發生了一些變化，我們將適應這一點。

And did you guys -- do you guys have what the June spot margin was?

你們知道六月的現貨利潤是多少嗎？

It's similar to where we worked in the quarter.

這與我們本季工作的地方類似。

Got it.

知道了。

And thinking about the margin as we get further along into 2025 and if there's rate cuts occurring. And even if you don't have the exact amount, but how much do you think that 25 basis points -- I think, it was about $1 million of annual NII changes as some of the swaps and hedges that are on if they were to roll off later in the year into 2025?

當我們進入 2025 年時，考慮一下利潤率以及是否會降息。即使你沒有確切的數字，但你認為 25 個基點有多少——我認為，年度 NII 變化約為 100 萬美元，因為一些掉期和對沖如果要進行的話今年晚些時候推出到 2025 年嗎？

I think, it would benefit us because those are -- we have the funding [tight], so if we did need the funding, we can let that go. The rate cuts will benefit, it will let those swaps roll off.

我認為，這將使我們受益，因為我們的資金[緊張]，所以如果我們確實需要資金，我們可以放手。降息將受益，它將使這些掉期得以實現。

Got it.

知道了。

But I mean it would improve that impact, correct?

但我的意思是這會改善這種影響，對嗎？

Any more questions Chris?

克里斯還有什麼問題嗎？

No, I was just saying as the hedges roll off, the impacts from a 25-basis-point cut would improve?

不，我只是說隨著避險措施的解除，降息 25 個基點的影響會有所改善嗎？

Correct.

正確的。

Yeah, that's right.

是的，沒錯。

And ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn it back over to Mr. Buran for any closing remarks.

女士們、先生們，我們的問答環節到此結束。我想把它轉回給 Buran 先生做結束語。

Well, I thank you all for your attendance and your interest in Flushing Financial. And enjoy the rest of your summer. Thank you.

好的，我感謝大家的出席以及對法拉盛金融的興趣。並享受剩下的夏天。謝謝。

Thank you, sir. This concludes today's teleconference. You all may disconnect your lines and we thank you for your participation. Have a wonderful rest of your day.

謝謝您，先生。今天的電話會議到此結束。你們都可以斷開線路，我們感謝你們的參與。祝您有個愉快的一天。