First Foundation Inc (FFWM) 2023 Q1 法說會逐字稿

Greetings, and welcome to the First Foundation's First Quarter 2023 Earnings Conference Call. Today's call is being recorded. Speaking today will be Scott Kavanaugh, First Foundation's President and Chief Executive Officer; and Chris Naghibi, Chief Operating Officer.

您好，歡迎來到第一基金會 2023 年第一季度收益電話會議。今天的通話正在錄音中。 First Foundation 總裁兼首席執行官斯科特·卡瓦諾 (Scott Kavanaugh) 今天將發表講話；和首席運營官 Chris Naghibi。

Before I hand the call over to Scott, please note that management will make certain predictive statements during today's call that reflect their current views and expectations about the company's performance and financial results. These forward-looking statements are made subject to the safe harbor statements, including in today's earnings release. In addition, some of the discussion may include non-GAAP financial measures. For a more complete discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements and reconciliations of non-GAAP financial measures, please see the company's filings with the Securities and Exchange Commission.

在我將電話轉交給斯科特之前，請注意管理層將在今天的電話會議上做出某些預測性陳述，以反映他們當前對公司業績和財務業績的看法和期望。這些前瞻性聲明受安全港聲明的約束，包括在今天的收益發布中。此外，一些討論可能包括非 GAAP 財務指標。有關可能導致實際結果與非 GAAP 財務措施的任何前瞻性陳述和調節存在重大差異的風險和不確定性的更完整討論，請參閱公司向美國證券交易委員會提交的文件。

Additionally, First Foundation intends to file a proxy statement and related proxy materials with the Securities and Exchange Commission in connection with the company's 2023 Annual Meeting of Stockholders and the company's directors and certain of the executive officers are participants in the solicitation of proxies from our stockholders in connection with the annual meeting.

此外，First Foundation 打算就公司 2023 年股東年會向美國證券交易委員會提交一份代理聲明和相關代理材料，公司董事和某些執行官參與了向我們的股東征集代理權與年會有關。

Stockholders of First Foundation are strongly encouraged to read such proxy statements and all other related materials filed in the Securities and Exchange Commission carefully and in their entirety when they become available as they will contain important information about the 2023 Annual Meeting.

強烈建議 First Foundation 的股東在這些委託書和提交給美國證券交易委員會的所有其他相關材料可用時仔細完整地閱讀，因為它們將包含有關 2023 年年會的重要信息。

And I now would like to turn the call over to President and CEO, Scott Kavanaugh. Please go ahead, sir.

我現在想把電話轉給總裁兼首席執行官斯科特卡瓦諾。請繼續，先生。

Good morning, and welcome. Thank you for joining today's earnings conference call. Let me start by saying how humbled I am by the unprecedented events over the last quarter. For me personally, this is the toughest period I've experienced in my professional career. Yet during this history defining quarter for the financial services industry, First Foundation team has demonstrated immense and unwavering commitment to our clients and our company. I want to emphasize the resiliency of our business in the middle of the current economic headwinds.

早上好，歡迎。感謝您參加今天的收益電話會議。首先讓我說一下我對上個季度發生的前所未有的事件感到多麼謙卑。就我個人而言，這是我職業生涯中經歷過的最艱難的時期。然而，在這個金融服務行業具有歷史意義的季度中，First Foundation 團隊對我們的客戶和公司表現出了巨大而堅定的承諾。我想強調我們業務在當前經濟逆風中的彈性。

We are a diversified regional financial services company with a scale and a proven business model. Our core business is providing a variety of exceptional financial services to our clients and our core strategy remains strong. It is only because every employee at every level of our organization worked so diligently this quarter that First Foundation remains resilient, well capitalized and continues to generate strong, sustainable results despite the industry challenges. I cannot thank our employees enough. Their decision is illustrated in the financials we reported despite significant headwinds, and I am proud to say that our earnings per share for the quarter was $0.15.

我們是一家多元化的區域性金融服務公司，具有規模和行之有效的商業模式。我們的核心業務是為客戶提供各種卓越的金融服務，我們的核心戰略依然強勁。正是因為本季度我們組織各個層級的每一位員工都如此勤奮地工作，First Foundation 才得以保持彈性、資本充足，並在面臨行業挑戰的情況下繼續產生強勁、可持續的成果。我對我們的員工感激不盡。他們的決定反映在我們報告的財務數據中，儘管存在重大阻力，我可以自豪地說，我們本季度的每股收益為 0.15 美元。

Additionally, we generated $70.5 million in revenue, a 14% sequential decline due to a decrease in net interest income caused primarily by an increase in the interest expense paid on deposits and borrowings. Net income was $8.5 million for the quarter compared to $17.4 million for the fourth quarter of 2022. Our adjusted return on average assets ended the quarter at 0.25%. We are proud of our results.

此外，我們產生了 7050 萬美元的收入，環比下降 14%，這是由於淨利息收入減少，這主要是由於存款和借款支付的利息支出增加所致。本季度淨收入為 850 萬美元，而 2022 年第四季度為 1740 萬美元。我們調整後的平均資產回報率在本季度末為 0.25%。我們為我們的結果感到自豪。

Now I'd like to take a moment to discuss the recent extraordinary events and how we are currently positioned, the current banking environment. As we all know, during the first quarter, the impact of the Fed's interest rate actions came to a dramatic had. We witnessed a bank run and a capital crisis that led to the second largest failure of a financial institution in U.S. history. We saw customers withdraw a staggering $42 billion of deposits from a single institution in record time.

現在我想花點時間討論一下最近發生的非同尋常的事件以及我們目前的定位以及當前的銀行環境。眾所周知，在第一季度，美聯儲加息行動的影響就來了戲劇性的。我們目睹了導緻美國歷史上第二大金融機構倒閉的銀行擠兌和資本危機。我們看到客戶在創紀錄的時間內從一家機構提取了驚人的 420 億美元存款。

Well-established banks found themselves in compromised positions due to the deposit concentrations and dubiously structured securities portfolios. Abrupt changes by the Fed forced the entire banking sector and the regional banks, in particular, to reevaluate mid-quarter every aspect of their business, while also attempting to restore client confidence and believe that deposits were safe. Liquidity was available, security portfolios were diversified and an appropriate risk management was in place. They say hindsight is 2020. And looking back when we started seeing continued signs on the Fed's interest rate moves in the last quarter of 2022, we took proactive steps to mitigate the effects of our business model, which served us very well this quarter. We are grateful that those strategic moves allowed us to be what we feel is a step ahead in actively positioning the bank for long-term stability and success.

由於存款集中和結構可疑的證券投資組合，成熟的銀行發現自己處於不利地位。美聯儲的突然變化迫使整個銀行業，尤其是地區性銀行在季度中期重新評估其業務的各個方面，同時也試圖恢復客戶信心並相信存款是安全的。流動性可用，證券投資組合多樣化，適當的風險管理到位。他們說事後看來是 2020 年。回首過去，當我們開始看到美聯儲在 2022 年最後一個季度利率變動的持續跡象時，我們採取了積極措施來減輕我們商業模式的影響，這在本季度為我們提供了很好的服務。我們很高興這些戰略舉措使我們能夠成為我們認為在積極定位銀行以實現長期穩定和成功方面向前邁出的一步。

More specifically, beginning in October of last year, we implemented a liquidity funding strategy where members of management met twice a week for an extended period to discuss ways the organization could begin to increase deposits, reduce our loans-to-deposit ratio and suspend almost all lending activities. Our leadership across the organization remains committed to the proactive hard work required to prepare for and face the challenging interest rate environment. The great news is our deposits have stabilized since the March banking crisis.

更具體地說，從去年 10 月開始，我們實施了一項流動性融資戰略，管理層成員在較長時間內每週開會兩次，討論組織可以開始增加存款、降低貸存比並暫停幾乎所有活動的方式。所有貸款活動。我們整個組織的領導層仍然致力於積極主動地努力工作，以準備和麵對充滿挑戰的利率環境。好消息是，自 3 月份的銀行業危機以來，我們的存款已經穩定下來。

In the early days, we saw our fair share of outflows. In fact, following the collapse of Silicon Valley Bank and others, $844 million in deposits left First Foundation seeking a sense of institutional safety and without any assurance that deposits at all regional banks would be backstop. Most of the outflows we experienced went to top-tier global institutions considered too big to fail, not to our regional competitors. However, I am pleased to share that we have fared much better than some banks, and we have seen many of the deposits that initially left returned to First Foundation once the banking sector stabilized. This is a trend we expect to continue in the coming quarters.

在早期，我們看到了相當一部分資金流出。事實上，在矽谷銀行和其他銀行倒閉後，8.44 億美元的存款讓 First Foundation 尋求一種機構安全感，並且無法保證所有區域性銀行的存款都會得到支持。我們經歷的大部分資金外流流向了被認為太大而不能倒閉的頂級全球機構，而不是我們的區域競爭對手。然而，我很高興地告訴大家，我們的表現比一些銀行要好得多，而且我們已經看到，一旦銀行業穩定下來，許多最初離開的存款又回到了 First Foundation。我們預計這一趨勢將在未來幾個季度繼續下去。

Of the $844 million in outflows we experienced, $129 million has since returned to the bank. We also know that during this time, several bank clients moved money from their FFB bank accounts to our subsidiary First Foundation Advisors. And while the money is still coming over, this total is estimated to be approximately $100 million. This illustrates the value of our business model and our ability to keep client funds within our enterprise-wide offering. This is also a reflection of the incredible efforts of our entire organization, our robust platform and the incredible client service delivered this quarter.

在我們經歷的 8.44 億美元資金流出中，1.29 億美元已經回到銀行。我們還知道，在此期間，一些銀行客戶將資金從他們的 FFB 銀行賬戶轉移到我們的子公司 First Foundation Advisors。雖然這筆錢還在源源不斷地湧來，但估計總額約為 1 億美元。這說明了我們商業模式的價值以及我們將客戶資金保留在我們企業範圍內的能力。這也反映了我們整個組織的難以置信的努力、我們強大的平台和本季度提供的令人難以置信的客戶服務。

We are now seeing net positive days from our deposit channels, and retail and online banking have performed particularly well. We can confidently say that our deposit levels hit a trough related to the financial market disruption on March 21. And since March 31, we have added $80 million in total deposits across all channels, which speaks to the team and products we have in place.

我們現在看到我們的存款渠道出現淨積極天數，零售和在線銀行業務表現尤其出色。我們可以自信地說，我們的存款水平在 3 月 21 日跌至與金融市場動盪相關的低谷。自 3 月 31 日以來，我們在所有渠道增加了 8000 萬美元的總存款，這說明了我們的團隊和產品。

Throughout this quarter, our team has been proactive in helping clients navigate the uncertainties and restoring confidence in our bank and banking system. The steps we took were instrumental. We have been working closely with each deposit relationships to ensure clients understand the options available to them such as pairing their deposit balances, adding beneficiaries, utilizing products such as insured cash sweeps, ICS accounts and strategically repositioning accounts to ensure full FDIC in coverage.

在整個本季度，我們的團隊一直積極幫助客戶應對不確定性並恢復對我們銀行和銀行系統的信心。我們採取的步驟很有幫助。我們一直與每個存款關係密切合作，以確保客戶了解他們可用的選項，例如配對他們的存款餘額、添加受益人、利用保險現金清掃、ICS 賬戶等產品和戰略性重新定位賬戶以確保 FDIC 全面覆蓋。

Related to operational efficiency during the quarter, management and the Board made it difficult but proactive decision to reduce staffing. We conducted 2 reductions in force, one in January and one in March, resulting in an approximate 15% staff reduction. We made this decision in the interest of our shareholders to help us weather the current lending environment. The positions that were impacted were primarily in ourselves, lending and credit divisions and there was no material impact in the areas of risk, operations or client service. The reductions in force will save approximately $14 million in annualized compensation expenses.

與本季度的運營效率相關，管理層和董事會做出了艱難但主動的裁員決定。我們進行了 2 次裁員，一次在 1 月，一次在 3 月，導致裁員約 15%。我們做出這一決定是為了股東的利益，以幫助我們度過當前的借貸環境。受影響的職位主要在我們自己、貸款和信貸部門，在風險、運營或客戶服務領域沒有重大影響。裁員將節省大約 1400 萬美元的年化補償費用。

Further, I along with our entire executive management team in support of our aggressive expense management efforts have elected to forego any cash bonus for the fiscal year 2023. This will reduce about $3 million in annualized executive compensation expenses, which would have been realized paid out in February of 2024.

此外，為了支持我們積極的費用管理工作，我和我們的整個執行管理團隊已選擇放棄 2023 財年的任何現金紅利。這將減少大約 300 萬美元的年度化高管薪酬費用，這些費用本來是可以支付的2024 年 2 月。

On deposits, I am also pleased to report that our uninsured deposits have decreased significantly. At the end of the quarter, total insured deposits represented 85%, meaning uninsured deposits represented just 15% of total deposits, which has further improved since the quarter end. This is well above industry standards when compared to the 100 largest banks. It is worth noting that as of April 12, our uninsured deposits were $1.517 billion, slightly below 15%. Our deposits declined slightly in the first quarter from the $10.4 billion in the fourth quarter of 2022 to $10.1 billion as a result of the mid-March outflows.

在存款方面，我也很高興地報告，我們的未投保存款已大幅減少。本季度末，受保存款總額佔 85%，這意味著未受保存款僅佔存款總額的 15%，自本季度末以來進一步改善。與 100 家最大的銀行相比，這遠高於行業標準。值得注意的是，截至 4 月 12 日，我們未投保的存款為 15.17 億美元，略低於 15%。由於 3 月中旬資金流出，我們的存款在第一季度從 2022 年第四季度的 104 億美元小幅下降至 101 億美元。

In terms of our deposits by type, we were balanced among noninterest-bearing, interest-bearing, money market and savings and certificate of deposits. Our deposits are diversified by geographic distribution with California, Florida and Texas, making up the majority of our core business deposits, but other states making up 23% of the total.

從存款類型看，本行在無息、有息、貨幣市場、儲蓄和大額存單之間保持平衡。我們的存款按地理分佈多樣化，加利福尼亞、佛羅里達和德克薩斯占我們核心業務存款的大部分，但其他州佔總數的 23%。

Additionally, our loans-to-deposit ratio have been heading in the right direction over the past 6 months, falling from 103.5% to 97% just prior to the "acute catalyst" induced by the Fed. However, following Fed actions that caused outflows, our loans-to-deposit ratio moved up to 106.1%. Since then, we have successfully recovered deposits, and we have already seen our loans-to-deposit ratio begin to decrease. As of April 12, our loans-to-deposit ratio was 105.6% and trending better weekly. We are constantly monitoring and managing this ratio as a strategic priority.

此外，我們的貸存比在過去 6 個月一直朝著正確的方向發展，在美聯儲引發的“急性催化劑”之前從 103.5% 下降到 97%。然而，在美聯儲采取導致資金外流的行動之後，我們的貸存比率上升至 106.1%。從那時起，我們已經成功收回了存款，我們已經看到我們的存貸比開始下降。截至 4 月 12 日，我們的存貸比為 105.6%，並且每週都在向好。我們一直將此比率作為戰略重點進行監控和管理。

I would also like to touch on deposit costs to reiterate how thankful I am that we were early when it came to betas in our deposit costs. First Foundation began raising interest rates and lock step with the Fed last year when Fed rates were only 1%. Therefore, our costs are much more in line with where the Fed is now and where it is headed. Now that is not to say that our funding costs will not go up, but it is to say that we will not need to adjust our rates abruptly trying to play catch-up to the Fed and issue some of our competitors are currently contending with.

我還想談談存款成本，以重申我很慶幸我們在存款成本的貝塔測試方面早了一步。去年，當美聯儲利率僅為 1% 時，第一基金會開始加息並與美聯儲保持同步。因此，我們的成本更符合美聯儲現在的位置和未來的發展方向。這並不是說我們的融資成本不會上升，而是說我們不需要突然調整利率來試圖追趕美聯儲和我們的一些競爭對手目前正在競爭的問題。

On liquidity, next, First Foundation maintain and continues to benefit from a strong liquidity position. Our liquidity position remained at $3.5 billion. To drill in a little bit, our on-balance sheet liquidity as of March 31 was $1.3 billion in cash and securities, which helps us -- helped us get through the tumultuous and unprecedented quarter.

接下來，在流動性方面，First Foundation 維持並繼續受益於強勁的流動性狀況。我們的流動資金頭寸保持在 35 億美元。稍微深入一點，截至 3 月 31 日，我們的資產負債表內流動資金為 13 億美元的現金和證券，這幫助我們度過了動盪且前所未有的季度。

Our liquidity profile has long been an important differentiator for First Foundation, providing much needed stability. Immediately available liquidity exceeds uninsured deposits with a coverage ratio of 223% as of April 12. As of March 31, this includes $1.3 billion in cash and cash equivalents, representing 10% of total assets on the balance sheet.

長期以來，我們的流動性狀況一直是 First Foundation 的重要差異化因素，提供了急需的穩定性。截至 4 月 12 日，立即可用的流動性超過未保險存款，覆蓋率為 223%。截至 3 月 31 日，這包括 13 億美元的現金和現金等價物，佔資產負債表總資產的 10%。

Available credit facilities of $930 million with the Federal Home Loan Bank and $843 million with the Federal Reserve discount window. $245 million available in uncommitted credit lines and a market value of unpledged securities of $130 million.

聯邦住房貸款銀行的可用信貸額度為 9.3 億美元，美聯儲貼現窗口的可用信貸額度為 8.43 億美元。 2.45 億美元的可用未承諾信貸額度和 1.3 億美元的未抵押證券市場價值。

On the securities portfolio, our securities portfolio has a current market value of $1.1 billion for both HTM and AFS, unchanged from the prior quarter. And we ended the quarter with unrealized and unrecognized losses on the portfolio, had only $71.5 million on a tax effective basis. The average yield of our investment securities portfolio decreased to 2.73% -- oh, increased, I'm sorry, increased to 2.73% from 2.5% last quarter.

在證券投資組合方面，我們的 HTM 和 AFS 證券投資組合的當前市值為 11 億美元，與上一季度持平。我們在本季度末的投資組合中存在未實現和未確認的虧損，在稅收有效基礎上只有 7150 萬美元。我們投資證券組合的平均收益率下降到 2.73%——哦，增加了，對不起，從上個季度的 2.5% 增加到 2.73%。

We also continue to focus on efforts beyond stabilizing and growing our deposits, including managing our loan portfolio, ensuring pristine credit quality, identifying operational efficiencies and reducing expenses while maintaining our client-first mentality. We are rebuilding from a difficult March, which will take time, perhaps even several quarters and we plan to focus on maintaining margin so that we are well positioned for 2024. We believe that we are in a position to expand NIM once the banking and liquidity pressures abate.

我們還繼續專注於穩定和增加存款以外的工作，包括管理我們的貸款組合、確保良好的信貸質量、確定運營效率和減少開支，同時保持我們客戶至上的心態。我們正在從艱難的三月重建，這需要時間，甚至可能需要幾個季度，我們計劃專注於維持利潤率，以便我們為 2024 年做好準備。我們相信，一旦銀行業務和流動性出現問題，我們就能夠擴大 NIM壓力減輕。

Let's look at our lines of business in more detail. As we mentioned in our last quarter, we continue to strategically manage our loan growth. Loan balances remained flat at $10.7 billion compared to the prior quarter. Loan portfolio average yield -- to 4.54% in the quarter compared to the fourth quarter, -- oh, increased, I'm sorry, to 4.54% in the quarter from the fourth quarter 2022.

讓我們更詳細地了解一下我們的業務範圍。正如我們在上個季度提到的，我們繼續戰略性地管理我們的貸款增長。與上一季度相比，貸款餘額持平於 107 億美元。貸款組合平均收益率——與第四季度相比，本季度達到 4.54%——哦，對不起，從 2022 年第四季度開始，本季度增加到 4.54%。

Our fundamentals remain strong with excellent credit quality. Notably, our credit quality remains pristine and our NPA ratio remained at 13 basis points. Our total delinquent loans as a percentage of the total loans increased from 0.29% as of December 31, 2022, to 45 basis points as of March 2023.

我們的基本面依然強勁，信用質量出色。值得注意的是，我們的信用質量保持良好，我們的 NPA 比率保持在 13 個基點。我們的拖欠貸款總額佔貸款總額的百分比從 2022 年 12 月 31 日的 0.29% 增加到 2023 年 3 月的 45 個基點。

Our multifamily loan portfolio remains a best-in-class asset and multifamily loans continue to be the strongest performing asset class across all commercial real estate. As many of you have heard me say, CRE is a very broad category and our CRE portfolio is comprised of workforce and essential housing in the form of multifamily apartments located in extremely attractive markets. We think this positions us well in light of potential pending recession or economic downturn as this asset class holds its value compared to other asset classes within the commercial real estate.

我們的多戶貸款組合仍然是一流的資產，多戶貸款仍然是所有商業房地產中表現最強勁的資產類別。正如你們中的許多人聽到我說的那樣，CRE 是一個非常廣泛的類別，我們的 CRE 產品組合包括勞動力和位於極具吸引力的市場中的多戶公寓形式的基本住房。鑑於潛在的即將到來的衰退或經濟衰退，我們認為這使我們處於有利地位，因為與商業房地產中的其他資產類別相比，該資產類別保持其價值。

Our loan-to-value of our multifamily portfolio remains at less than 55.2%. Our multifamily portfolio is diversified across geographies with the largest concentrations in California, a state with limited housing and rent control in many of the cities we operate in.

我們的多戶家庭投資組合的貸款價值比仍低於 55.2%。我們的多戶型投資組合在各個地區實現了多元化，最集中在加利福尼亞州，該州在我們開展業務的許多城市中的住房和租金控制有限。

We have also been proactive in restructuring some of our multifamily portfolio, moving it to weighted average portfolio in line with current market rates. This will take some time, but we have already started to see the benefits of these efforts. I am proud to reiterate that we have never taken a charge-off in our multifamily loans in the history of this firm. And I want to remind everyone that we have very little or no exposure to construction, hotels or commercial office space. While this is a challenging macroeconomic cycle, we are executing on a very solid business plan and expect the results to follow once we experience a more normalized rate environment.

我們還積極重組我們的一些多戶型投資組合，將其轉變為符合當前市場利率的加權平均投資組合。這需要一些時間，但我們已經開始看到這些努力的好處。我很自豪地重申，在這家公司的歷史上，我們從未取消過我們的多戶家庭貸款。我想提醒大家，我們很少或根本沒有接觸過建築、酒店或商業辦公空間。雖然這是一個充滿挑戰的宏觀經濟周期，但我們正在執行一項非常可靠的業務計劃，並預計一旦我們經歷了一個更加正常化的利率環境，結果就會隨之而來。

On NIM, net interest income was 58.8% for the first quarter of 2023 compared to $74.7 million for the prior quarter. Interest income increased from $126 million in the fourth quarter of 2022 to $137 million in the first quarter of 2023 due to the increase in both average interest-earning asset balances as well as average yields earned on such balances.

在 NIM 上，2023 年第一季度的淨利息收入為 58.8%，而上一季度為 7470 萬美元。利息收入從 2022 年第四季度的 1.26 億美元增加到 2023 年第一季度的 1.37 億美元，原因是平均生息資產餘額和此類餘額的平均收益率都有所增加。

Interest expense was $78.2 million for the first quarter of 2023 compared to $51.3 million in the prior quarter. This increase was due to the increases in both average interest-bearing liability balances as well as interest rates paid on such balances.

2023 年第一季度的利息支出為 7820 萬美元，上一季度為 5130 萬美元。這一增長是由於平均帶息負債餘額以及為此類餘額支付的利率均有所增加。

Our NIM for the quarter was 1.83% compared to 2.5 -- or excuse me, 2.45% for the prior quarter, which reflects the interest rate environment and the continued pressure that Fed's -- from the Fed's actions. We expect this to normalize to pre-crisis levels as soon as the Fed eases or market conditions settle. I won't predict the actions of the Fed, but on a broad basis, we continue to more evenly diversify our portfolio.

我們本季度的 NIM 為 1.83%，而上一季度為 2.5%，或者對不起，為 2.45%，這反映了利率環境和美聯儲行動帶來的持續壓力。一旦美聯儲放寬政策或市場狀況穩定下來，我們預計這將恢復到危機前的水平。我不會預測美聯儲的行動，但在廣泛的基礎上，我們將繼續更均勻地分散我們的投資組合。

Noninterest income of $11.7 million for the first quarter compares to $7.2 million in the fourth quarter of 2022. Noninterest expense was $59.3 million in the first quarter of 2023 compared to 59.8% -- $59.8 million, excuse me, in the prior quarter.

第一季度的非利息收入為 1170 萬美元，而 2022 年第四季度為 720 萬美元。2023 年第一季度的非利息支出為 5930 萬美元，而上一季度為 59.8%——對不起，為 5980 萬美元。

Our efficiency ratio in the first quarter of 2023 was 84.5% compared to 70.9% for the fourth quarter of 2022. The increase in the efficiency ratio is largely attributable to the aforementioned reduction in net interest income during the quarter.

我們在 2023 年第一季度的效率比為 84.5%，而 2022 年第四季度為 70.9%。效率比的提高主要是由於上述季度淨利息收入的減少。

On the Wealth Management and Trust Services side, looking at our Wealth Management and Trust business, we continue to experience meaningful contributions to the firm as evidenced by continued business unit revenue of $8.8 million for the quarter. This combined business unit revenue, coupled with other recurring sources of noninterest income from the banking unit, accounted for 16% of the company's total revenue for the quarter.

在財富管理和信託服務方面，看看我們的財富管理和信託業務，我們繼續為公司做出有意義的貢獻，本季度持續的業務部門收入為 880 萬美元就是證明。這一合併業務部門收入，加上來自銀行部門的其他經常性非利息收入來源，占公司本季度總收入的 16%。

We have also been successful in retaining existing clients and attracting new ones. It is important to note that FFA saw very little turnover this quarter from existing clients. We continue to experience an inflow of assets from existing and new clients. Assets under management increased $200 million in the quarter and ended the quarter at $5.2 billion. Trust assets under advisement ended the quarter at $1.3 billion.

我們還成功地留住了現有客戶並吸引了新客戶。值得注意的是，FFA 本季度現有客戶的營業額很少。我們繼續經歷來自現有和新客戶的資產流入。本季度管理的資產增加了 2 億美元，本季度末達到 52 億美元。本季度末，接受諮詢的信託資產為 13 億美元。

Our capital position. Let me touch on a few more data points before I hand the call over to Chris. We remain well capitalized with a Tier 1 risk-based capital ratio of 10.82% at quarter end and exceeding all Basel III well-capitalized regulatory requirements. Our tangible book value per share ended the quarter at $16.17 compared to $16.20 per share in the previous quarter, which reflected the payment of our fourth quarter's dividend. We also declared and will pay a first quarter cash dividend of $0.02 per share. We are pleased to maintain a dividend in light of the current banking environment. And while we have to reduce it for the quarter, we expect that we can bring it back to historic levels.

我們的資本狀況。在我將電話轉交給克里斯之前，讓我再談幾個數據點。我們的資本充足，季度末基於風險的一級資本比率為 10.82%，超過了巴塞爾協議 III 的所有資本充足監管要求。我們的每股有形賬面價值在本季度結束時為 16.17 美元，而上一季度為每股 16.20 美元，這反映了我們第四季度股息的支付。我們還宣布並將支付每股 0.02 美元的第一季度現金股息。鑑於當前的銀行業環境，我們很高興維持股息。雖然我們必須在本季度減少它，但我們希望我們可以將其恢復到歷史水平。

I will close my opening remarks by saying, over the last month, like many months before, I've had an opportunity to connect and speak with many of our clients. And in my conversations, I was able to reiterate the strengths of working with the regional bank like First Foundation. Among those is having direct access to leadership and being on a first name basis with us and having the ability to connect with us during challenging times to ask questions. This personal touch is special to the regional banking industry and is why we continue to choose to -- why many choose to bank with us.

我將結束我的開場白，在過去的一個月裡，就像之前的許多個月一樣，我有機會與我們的許多客戶聯繫和交談。在我的談話中，我能夠重申與 First Foundation 這樣的區域性銀行合作的優勢。其中包括可以直接接觸領導層，與我們直呼其名，並能夠在充滿挑戰的時期與我們聯繫並提出問題。這種個人風格對區域銀行業來說很特別，這就是為什麼我們繼續選擇——為什麼許多人選擇在我們這裡開戶。

This is evidenced by the successes we are now having in Florida, thanks to the leadership of Garrett Richter and all the relationships the Florida team has built over time. And I would be remiss not taking the moment to publicly recognize our leadership across all regions who are instrumental in helping us navigate the recent market conditions and who dedicate their careers to serving our clients exceptionally well every single day.

我們現在在佛羅里達州取得的成功證明了這一點，這要歸功於 Garrett Richter 的領導以及佛羅里達團隊長期以來建立的所有關係。如果不花時間公開表彰我們在所有地區的領導地位，我會失職，他們在幫助我們駕馭最近的市場狀況方面發揮了重要作用，並且每天都致力於為我們的客戶提供出色的服務。

Now I will turn the call over to Chris, who will go over our balance sheet.

現在我將把電話轉給克里斯，他將檢查我們的資產負債表。

Thank you, Scott. As Scott mentioned, it was a challenging quarter for financial services. but I am so proud of the First Foundation team for their dedication to our clients and to the communities which we serve. I recently embarked on a listening tour across nearly all of our branches to hear from our employees directly. It was a great way to see what's working well in areas where the organization can improve.

謝謝你，斯科特。正如斯科特提到的那樣，這是金融服務業充滿挑戰的一個季度。但我為 First Foundation 團隊為我們的客戶和我們所服務的社區所做的奉獻感到自豪。我最近開始了對我們幾乎所有分支機構的傾聽之旅，以直接聽取我們員工的意見。這是了解在組織可以改進的領域哪些方面運作良好的好方法。

Our management team and I simply wanted to connect and renew our commitment to our employees of a productive, collaborative culture of teamwork. Several new key initiatives have grown out of these visits as we look to improve the overall experience for our clients and our internal employees. I'm confident that we have the right business strategy in place to serve as a best-in-class regional bank.

我和我們的管理團隊只是想聯繫並重申我們對員工的承諾，即營造高效、協作的團隊合作文化。隨著我們希望改善客戶和內部員工的整體體驗，這些訪問產生了一些新的關鍵舉措。我相信我們擁有正確的業務戰略，可以成為一流的區域性銀行。

Moving to our lending operations. Loan originations were $481 million for the quarter, which reflects the strategic downturn and slowdown that we have previously spoken about. Our net loan activity over the quarter was decreased by line paydowns and scheduled payments and prepayments.

轉向我們的貸款業務。本季度的貸款發放額為 4.81 億美元，這反映了我們之前談到的戰略低迷和放緩。我們本季度的淨貸款活動因線路還款、計劃付款和預付款而減少。

Looking at the breakdown of loans that we originated in the quarter, the percentages are as follows: commercial business loans, 89%; multifamily, 3%; single-family, 3%; land and construction is now at 4%; and CRE investment at 1%. It is always important to note that we accomplished this without changing our high underwriting standards. And our NPAs remain unchanged at 13 basis points for the quarter. This is also reflected in our conservative underwriting standards as evidenced by our LTVs of 55.2% for multifamily loans and 55% for single-family loans. This highlights the bank's consistent and disciplined lending practices during these uncertain financial conditions that have been the backbone of our success dating back to what helped propel us during the great recession.

從我們本季度發起的貸款細目來看，百分比如下：商業貸款，89%；多戶家庭，3%；單戶家庭，3%；土地和建築現在為 4%；和 CRE 投資 1%。始終需要注意的是，我們在不改變高承保標準的情況下實現了這一目標。本季度我們的 NPA 保持在 13 個基點不變。這也反映在我們保守的承保標準中，我們的多戶貸款 LTV 為 55.2%，單戶貸款為 55%。這凸顯了銀行在這些不確定的金融條件下一貫和紀律嚴明的貸款做法，這些做法一直是我們成功的支柱，可以追溯到大衰退期間幫助推動我們前進的因素。

We have continued to tighten up and improve our underlying credit guidance to ensure the appropriate strength and risk appetite in the climate to come. We have continued to follow our strategy to pragmatically temper our loan originations. Speaking more specifically about our loan yields, we achieved a weighted average rate of 7.40% on new originations for the quarter, which compares to 5.72% for new originations in the fourth quarter. As mentioned, as of March 31, 2023, our loan portfolio is comprised of 50% multifamily loans, 32% commercial business loans, 7% nonowner-occupied commercial real estate, 9% consumer and single-family residence loans and 2% of land and construction loans, which are selectively and carefully considered for only our most valued clients.

我們繼續收緊和改善我們的基本信貸指導，以確保在未來的氣候中保持適當的實力和風險偏好。我們繼續遵循我們的戰略，務實地調整我們的貸款發放。更具體地說，關於我們的貸款收益率，我們在本季度的新貸款中實現了 7.40% 的加權平均利率，而第四季度新貸款的加權平均利率為 5.72%。如前所述，截至 2023 年 3 月 31 日，我們的貸款組合包括 50% 的多戶貸款、32% 的商業貸款、7% 的非自住商業房地產、9% 的消費者和單戶住宅貸款以及 2% 的土地和建築貸款，這些貸款僅針對我們最有價值的客戶進行選擇性和仔細考慮。

Our commercial business portfolio is diversified with no sector comprising more than 30% of the portfolio and 87% of the commercial business portfolio attributable to commercial real estate. So we are focused on making more adjustable rate loans, which should offset some of the pressures of the current rate environment. We are limited by a variety of factors, including funding constraints as the deposit market remains extremely competitive and liquidity continues to drain from the financial system, along with limiting our exposure to higher cost wholesale funding.

我們的商業業務組合是多元化的，沒有一個部門佔投資組合的 30% 以上，商業房地產佔商業業務組合的 87%。因此，我們專注於提供更多可調整利率的貸款，這應該可以抵消當前利率環境的一些壓力。我們受到多種因素的限制，包括資金限制，因為存款市場仍然極具競爭性，流動性繼續從金融體系中流失，同時限制了我們對成本更高的批發融資的敞口。

The breakdown of our current deposits is as follows: Money market and savings at 30%. This gives a deposit of 24%, interest-bearing demand deposits at 24% and noninterest-bearing demand deposits at 22%. As Scott mentioned, our percentage of insured deposits increased to 85% as of March 31, 2023, and are 85% as of April 12. Our deposit costs came in at 2.38% for the quarter. And while our future deposit costs are closely tied to the actions of the Fed, we believe we will not be as sensitive as other banks to future rate increases.

我們活期存款的明細如下：貨幣市場和儲蓄為 30%。這使得存款為 24%，計息活期存款為 24%，無息活期存款為 22%。正如斯科特提到的那樣，截至 2023 年 3 月 31 日，我們的受保存款比例增加到 85%，截至 4 月 12 日為 85%。本季度我們的存款成本為 2.38%。雖然我們未來的存款成本與美聯儲的行動密切相關，但我們相信我們不會像其他銀行那樣對未來的加息敏感。

Before I hand it back over to the operator for Q&A, I want to reiterate Scott's comments. I am very grateful for our team's dedication to delivering excellent client service when it matters most. I can confidently say that we have incredible customers and we continue to be excited about the growth in our future. I've touched on it several times, but I am very proud of our entire management team and all of our employees.

在我將其交還給接線員進行問答之前，我想重申斯科特的評論。我非常感謝我們的團隊在最重要的時候致力於提供卓越的客戶服務。我可以自信地說，我們擁有令人難以置信的客戶，我們對未來的增長繼續感到興奮。我已經多次提到它，但我為我們的整個管理團隊和所有員工感到非常自豪。

So many clients and employees have been incredibly generous and thoughtful with their constructive suggestions on how to improve on our delivery of our value proposition of excellent service. We are both committed to listening and executing on these wonderful ideas. Now more than ever, we are aligned and we have been collaboratively working hard day in and day out to accomplish our strategic objectives, no matter the environment.

許多客戶和員工都非常慷慨和周到，就如何改進我們提供優質服務的價值主張提出了建設性建議。我們都致力於傾聽和執行這些絕妙的想法。現在，我們比以往任何時候都更加一致，無論環境如何，我們都日復一日地共同努力，以實現我們的戰略目標。

At this time, we are ready to take questions, and I will hand it back to the operator.

這時候我們準備好提問了，我會交還給接線員。

(Operator Instructions) Our first question comes from David Feaster, Raymond James.

（操作員說明）我們的第一個問題來自 David Feaster，Raymond James。

Maybe just one -- let's start on the deposit side. I appreciate all the color that you gave. Glad to hear the stability and the improvement in balances since troughing in mid-March. Just looking at the presentation, it looks like a lot of the concern was really in the wake of the bank failures. But I guess with the stability that you're seeing, the strength of the balance sheet and available liquidity that you have, you started to see some of that come back. But would you expect to see that accelerate, especially just given opportunities to utilize other insurance networks and those types of things? And then maybe just touch a bit on the deposit growth strategy near term more broadly.

也許只有一個——讓我們從存款方面開始。我很感激你給的所有顏色。很高興聽到自 3 月中旬觸底以來平衡的穩定性和改善。只看演示文稿，看起來很多擔憂確實是在銀行倒閉之後發生的。但我想隨著你所看到的穩定性、資產負債表的實力和你擁有的可用流動性，你開始看到其中的一些回歸。但是您是否期望看到這種加速，尤其是有機會利用其他保險網絡和那些類型的東西？然後可能只是更廣泛地談及近期的存款增長戰略。

Well, I'll touch on the first part. Chris can speak to kind of our deposit growth strategy on a go-forward basis. But to answer your question, yes, I do believe that a lot of the deposits will come back, no matter how you cut it in slice that, David, I think the Fed and Treasury Secretary failed a little bit in the sense of leasing that they would backstop deposits. And as long as -- I mean, I think Jamie Dimon at JPMorgan said it correctly, which is at the end of the day, this hurts all banks.

好吧，我將談談第一部分。克里斯可以在前進的基礎上談論我們的存款增長戰略。但要回答你的問題，是的，我確實相信很多存款會回來，無論你如何分割它，大衛，我認為美聯儲和財政部長在租賃方面有點失敗他們會支持存款。只要——我的意思是，我認為摩根大通的傑米·戴蒙說得對，到頭來，這會傷害所有銀行。

And I think there has to be a bit of period for confidence to rebound that regional banks are going to be around, they're going to be supported and I firmly believe that, that will happen. And when that happens, I think you will see a lot of our deposits come back. We have a lot of also decent clients that we're opening up that are newer relationships as well and we continue to work on that. But I'll let Chris talk about some of the deposit strategies that we currently have going on.

而且我認為必須有一段時間才能讓信心反彈，因為區域性銀行將會存在，它們將得到支持，我堅信，這將會發生。當這種情況發生時，我想你會看到我們的很多存款都回來了。我們有很多我們正在開放的體面的客戶，這些客戶也是較新的關係，我們將繼續努力。但我會讓克里斯談談我們目前正在進行的一些存款策略。

So looking back to November when we started to really look at liquidity cards, we were actually kind of developing the strategies that we're going -- we put in place, and we're continuing to put in place over the next several months. But really, there's untapped opportunities and unlimited potential in our current branch network. And we focus a lot on small business, on middle market business and on the clients that we serve.

所以回顧 11 月，當我們開始真正研究流動性卡時，我們實際上正在製定我們正在實施的戰略——我們已經實施，並且在接下來的幾個月裡我們將繼續實施。但實際上，我們當前的分支網絡中存在未開發的機會和無限的潛力。我們非常關注小型企業、中間市場業務以及我們所服務的客戶。

And we also found that there were opportunities missed with the digital presence that we have. We've got a very large digital presence, an online account opening process, which we're currently revamping with seller technology. But in order to leverage that from a transactional business into a relationship business, which has been the foundation of our model, we need to really kind of tweak some knobs and go after the clients and show them the customer service that we provide in a way that I think will actually really help to grow that and bring those customers into our model and make the relationship more sticky over time. You can lead with rate, but we found that service can take them a lot further. And then obviously, the complexity of the model that we have with the wealth advisory side with the trust offerings, everything that we offer in aggregate can bring those relationships in and keep them in for much longer.

而且我們還發現，我們擁有的數字業務錯失了一些機會。我們有一個非常大的數字存在，一個在線賬戶開戶流程，我們目前正在使用賣家技術對其進行改進。但是，為了將其從交易業務轉變為關係業務，這一直是我們模型的基礎，我們需要真正調整一些旋鈕並關注客戶並向他們展示我們以某種方式提供的客戶服務我認為這實際上真的有助於發展，並將這些客戶帶入我們的模型，並隨著時間的推移使這種關係更加牢固。您可以率先領先，但我們發現服務可以讓他們走得更遠。然後很明顯，我們在財富諮詢方面所擁有的模型的複雜性與信託產品，我們提供的所有東西都可以將這些關係帶入並保持更長時間。

So we're tapping into the digital networks. We're certainly expanding on our branch focus. And I want to see a reconciliation of the branding across the branch model as well as the digital presence so that our outward and inwards in client experience is the same level and caliber of service. That means going downstream to small businesses that means focusing on individuals. We'll always have a focus on our high worth clients, but I think there's untapped and unlimited potential with those clients moving forward. So I do expect to see the cadence increase in the months and year to come.

所以我們正在利用數字網絡。我們肯定會擴大我們的分支機構重點。而且我希望看到跨分支機構模型和數字存在的品牌協調，以便我們在客戶體驗中的外在和內在具有相同的服務水平和質量。這意味著向下游轉移到小企業，這意味著關注個人。我們將始終專注於我們的高價值客戶，但我認為這些客戶在前進中還有未開發和無限的潛力。所以我確實希望看到節奏在未來幾個月和一年內增加。

Okay. That's extremely helpful. And then maybe could you help us just think about the margin trajectory and how this all plays into that? Obviously, the increase in cash balances and rising borrowings and stuff late in the quarter probably weighs on the NIM in the short run, but as we look out, I mean, origination yields in the mid-7s. Opportunity to improve the earning asset mix and deploy that cash, it seems like there's a real opportunity for expansion and you alluded to that kind of in the back half of the year. But I was just hoping maybe you could help us think through the margin trajectory here in the second quarter and then how things might look in the back half of the year as things stabilize and some of these deposit initiatives play out?

好的。這非常有幫助。然後也許你能幫我們想想保證金軌跡以及這一切如何影響它嗎？顯然，本季度末現金餘額的增加和借款的增加等可能會在短期內對 NIM 造成壓力，但正如我們所看到的，我的意思是，原始收益率在 7 年代中期。有機會改善盈利資產組合併部署現金，這似乎是一個真正的擴張機會，你在今年下半年提到了這種機會。但我只是希望你能幫助我們思考第二季度的利潤率軌跡，然後隨著情況穩定和其中一些存款計劃的實施，下半年的情況會如何？

Yes, I'm glad you asked that question because the reality is we added almost $500 million of loans last quarter. And if you saw, it was a dramatic jump in the weighted average coupon of the loans we funded from the previous quarter to this quarter. I think Chris said 570 versus 740, and you're talking 170, 180 basis point increase.

是的，我很高興你問了這個問題，因為現實是我們上個季度增加了近 5 億美元的貸款。如果你看到的話，從上一季度到本季度，我們資助的貸款的加權平均息票大幅上漲。我認為克里斯說的是 570 和 740，而你說的是 170、180 個基點的增加。

And look, first and foremost, it's liquidity, liquidity, liquidity. And that's why you've seen the balance sheet stay pretty pad. But I think the trajectory that we've been talking about the last several quarters getting more into straight adjustables, a little more C&I balancing out so that we're not as exposed to fixed rate lending as we have been previously, I think it's the right answer. I personally believe that if we haven't troughed, we are about the trough in terms of net interest margin. And I believe it will expand back out, and it will be for all the reasons that you see how we're performing right now by being able to increase our loan yields.

首先看，它是流動性、流動性、流動性。這就是為什麼您看到資產負債表保持良好狀態的原因。但我認為我們在過去幾個季度一直在談論的軌跡更多地進入直接可調，更多的 C&I 平衡，這樣我們就不會像以前那樣暴露在固定利率貸款中，我認為這是正確答案。我個人認為，如果我們還沒有觸底，那麼就淨息差而言，我們即將觸底。而且我相信它會擴展回來，出於各種原因，你會看到我們現在的表現如何，能夠提高我們的貸款收益率。

Deposits are -- as we said in the prepared remarks, we believe that -- I mean, our betas were pretty fast in the early going, and I think we got criticized pretty hard for it. But now the rates are up around 5%, we've experienced most of that beta change already. So as Chris was basically saying, look, we're already there on the deposit side. And if the Fed increases, certainly our deposit costs will go up, but it will go up much more modestly than we believe our competitors will. So I think we're really in a pretty good position to start to expand NIM, I would say, in the latter half of this year. And as the liquidity issues abate, which I feel like they've already largely done, then we'll be in a position to start correcting that NIM and hopefully even sooner rather than later.

存款是——正如我們在準備好的評論中所說，我們相信——我的意思是，我們的測試版在早期進行得非常快，我認為我們因此受到了相當嚴厲的批評。但現在利率上漲了 5% 左右，我們已經經歷了大部分的 Beta 變化。所以正如克里斯基本上所說的那樣，看，我們已經在存款方面了。如果美聯儲加息，我們的存款成本肯定會上升，但上升幅度會比我們認為我們的競爭對手要小得多。所以我認為我們真的處於一個非常好的位置，可以在今年下半年開始擴展 NIM。隨著流動性問題的消退，我覺得他們已經基本完成了，那麼我們將能夠開始糾正 NIM，並希望儘早而不是更晚。

Okay. That makes sense and helpful color. And then maybe just -- let's touch on originations and loan growth. Not surprised to see the slowdown in multifamily. We've kind of talked about that. Originations primarily driven by the commercial business segment. Just I'm curious what you're seeing there. Where are new loan yields today? Are they kind of still in that mid-7s? And just how is demand in that segment? Where are you seeing good opportunities and just your overall appetite for growth. I mean would you expect just continued remix funding up basically replacing maturing loans with new originations? Or just curious how you think the loan portfolio might shake out.

好的。這是有意義且有用的顏色。然後也許只是 - 讓我們談談起源和貸款增長。看到多戶住宅的放緩並不奇怪。我們已經談過這個了。起源主要由商業業務部門驅動。只是我很好奇你在那裡看到了什麼。今天的新貸款收益率在哪裡？他們還處於 7 年代中期嗎？該細分市場的需求如何？您在哪裡看到好的機會以及您對增長的整體胃口。我的意思是，您是否希望繼續重新混合資金，基本上用新的貸款取代到期貸款？或者只是好奇您認為貸款組合可能會如何調整。

It's really more about maintaining the balance sheet as is. So I want to say we just got an update. I want to say there's probably $50 million, $60 million that is projected to pay off in the next month to 6 weeks. We'll replace that with higher-yielding stuff. I was just looking at a payoff report. There was, I don't know, a $22 million loan that paid off at 4.5%, $16 million loan that was 4.25%. We probably had $10 million or $12 million that paid off with 3 handles on the coupon somewhere between 3.5% and 3.75%.

這實際上更多的是保持資產負債表的原樣。所以我想說我們剛剛得到了更新。我想說可能有 5000 萬美元、6000 萬美元預計將在下個月到 6 週內得到回報。我們將用更高收益的東西代替它。我只是在看一份收益報告。我不知道，一筆 2200 萬美元的貸款以 4.5% 的利率還清，1600 萬美元的貸款以 4.25% 的利率還清。我們可能有 1000 萬或 1200 萬美元的回報，其中 3 個句柄的優惠券在 3.5% 到 3.75% 之間。

So we're going to take that opportunity to modestly replace some of those yields. But again, I'm going to go back and reiterate how important it is to think about liquidity first. And then -- but I think the pause is basically going to really be determined on what the Fed's actions are and what the banking crisis looks like as we continue to progress.

因此，我們將藉此機會適度取代其中一些收益率。但同樣，我要回去重申首先考慮流動性的重要性。然後——但我認為暫停基本上將真正取決於美聯儲的行動是什麼，以及隨著我們繼續取得進展，銀行業危機會是什麼樣子。

Our next question comes from Gary Tenner, D.A. Davidson.

我們的下一個問題來自 D.A. 的 Gary Tenner。戴維森。

A couple of questions. So on the deposit growth, since March 21, I apologize if I missed this, is that all 4 as opposed to any additional use of borrowed or, excuse me, brokered funds or anything?

幾個問題。因此，關於存款增長，自 3 月 21 日以來，如果我錯過了這一點，我深表歉意，這 4 個是所有 4 個，而不是任何額外使用借入的資金，或者，對不起，經紀資金或其他任何東西？

Well, we've continued to enhance using brokered, but what we referred to in our commentary was our core.

好吧，我們一直在使用代理進行改進，但我們在評論中提到的是我們的核心。

Okay. Okay. And then in terms of the on-balance sheet cash liquidity, you're at 10% of assets at the end of March versus 5%, and that 5% to 8% is probably where you've been historically. What -- how long do you think you hold on to the excess liquidity, even if it's not usually negative to NII? Obviously, there is a NIM pressure there. So curious how long you think you hold on to that.

好的。好的。然後就資產負債表內的現金流動性而言，3 月底你的資產佔資產的 10% 而不是 5%，而 5% 到 8% 可能是你的歷史水平。什麼——你認為你持有過剩流動性多久，即使它通常不會對 NII 產生負面影響？顯然，那裡存在 NIM 壓力。很好奇你認為你堅持了多久。

Well, it's negative. Any time you hold cash and you sell it, there's a bit at spread. So it's causing First Foundation additional revenue, the longer that it sits there. I've been reluctant for 18 months, probably almost 2 years to add to the securities portfolio for exactly the reasons that bankers are being criticized today, which is having a bunch of fixed rate assets on the books and having rising interest rates.

好吧，這是消極的。任何時候你持有現金並賣出它，都會有一點價差。所以它會導致 First Foundation 的額外收入，它存在的時間越長。 18 個月以來，可能近 2 年，我一直不願意增加證券投資組合，這正是銀行家今天受到批評的原因，即賬面上有大量固定利率資產並且利率不斷上升。

So we haven't added securities in quite some time. In discussions with our regulators, I don't really mind sharing this. I think the regulator's comfort zone is that you have in excess of, I think -- and it depends on the banks anywhere from 10% to 12% or higher percent on balance sheet liquidity, whether that's in securities or cash or whatever, we normally would not carry this much cash. But I believe in the current economic environment, it makes all the sense in the world to carry the cash until we feel comfortable.

所以我們已經有一段時間沒有增加證券了。在與我們的監管機構討論時，我真的不介意分享這一點。我認為監管機構的舒適區是你有超過，我認為 - 這取決於銀行資產負債表流動性的 10% 到 12% 或更高百分比，無論是證券、現金還是其他什麼，我們通常不會帶這麼多現金。但我相信在當前的經濟環境下，隨身攜帶現金直到我們感到舒服為止是完全合理的。

So we've started paring down a little bit in the last 2 weeks, our on balance sheet cash and we will continue to do so. But we continue to have ongoing dialogues with the regulators to make sure that we have ample cash, both on and off balance sheet. It's been very helpful in discussions with the FDIC and the Federal Reserve Bank to have availability in both government agencies, and we monitor that very closely.

因此，我們在過去兩週開始減少資產負債表上的現金，我們將繼續這樣做。但我們繼續與監管機構進行持續對話，以確保我們在資產負債表內外都有充足的現金。在與 FDIC 和聯邦儲備銀行的討論中，這兩個政府機構都可以使用，這非常有幫助，我們對此進行了密切監控。

By the way, I forget what they call that program, the [BTPH] or whatever the program is, we have -- I think we access the $1,000 to make sure it worked. So we really haven't accessed those lines yet. So it's in place and ready to roll should we need it. But the reality is it's up to now, we haven't utilized that. Does that answer your question?

順便說一下，我忘記了他們如何稱呼該程序，[BTPH] 或我們擁有的任何程序——我想我們可以獲得 1,000 美元以確保它有效。所以我們真的還沒有訪問這些線路。所以它已經到位並準備好在我們需要時推出。但現實是到目前為止，我們還沒有利用它。這是否回答你的問題？

I appreciate that. Yes, it does, Scott. And then last question for me. Just noticing the Florida franchise continues to be a really nice source of net funding, if my numbers are right, about $2.2 billion of deposits versus about $1.1 billion of loans. Just from a pricing perspective and just kind of deposit availability and success, is there any -- first, I wonder if you could kind of characterize the differences between Florida and California from a First Foundation perspective.

我很感激。是的，確實如此，斯科特。然後是我的最後一個問題。只要注意到佛羅里達州的特許經營權仍然是一個非常好的淨資金來源，如果我的數字是正確的，大約有 22 億美元的存款和大約 11 億美元的貸款。僅從定價的角度以及存款可用性和成功的角度來看，是否有任何 - 首先，我想知道你是否可以從 First Foundation 的角度來描述佛羅里達州和加利福尼亞州之間的差異。

I don't know that there's any differences. I will say as far as rates go, it's probably one thing when rates were at 1% or 1.5% or even 2%. I think at 5%, I don't know if any clients that I personally talk to that don't pay attention to Google or Yahoo! and know where rates are. I think the phone calls that a lot of banks are getting today are about, hey, I noticed yields are cropping up there, and I need more -- we don't -- we haven't gotten many of those because our betas have been high. But when I said I wanted to give a shout-out for Florida, I really meant it. We had a rocky start. And I think I've told most people that in the past. But we empowered the folks in Florida, and they've done an amazing job. As has all our people, but I -- we did have a rocky start there, and they've done an amazing job.

我不知道有什麼不同。我會說就利率而言，當利率為 1% 或 1.5% 甚至 2% 時，這可能是一回事。我認為是 5%，我不知道是否有任何與我個人交談過的客戶不關注 Google 或 Yahoo!並知道費率在哪裡。我想今天很多銀行接到的電話都是關於，嘿，我注意到那裡的收益率突然上升，我需要更多——我們不需要——我們沒有接到很多這樣的電話，因為我們的貝塔已經一直很高。但是當我說我想為佛羅里達大聲疾呼時，我是認真的。我們有一個艱難的開始。我想我過去已經告訴過大多數人。但我們賦予了佛羅里達州的人們權力，他們做得非常出色。和我們所有的人一樣，但我——我們確實有一個艱難的開端，他們做得非常出色。

And Gary, I'll add a little more color as well. So obviously, with the influx of Florida and I would say the general kind of feel that Florida is more of a business-friendly state, I think that certainly helps a lot of the direction of where the company is going, focusing on C&I in business. And we have this extremely well-seasoned leadership in the banking community there who really are well known and ingratiated into that community. And strategically, that acquisition and those relationships kind of dovetailing to our model well. So the growth was not unexpected. It was just a little bit slower because we had to embrace culture.

加里，我也會添加更多顏色。很明顯，隨著佛羅里達州的湧入，我想說的是，人們普遍認為佛羅里達州更像是一個對商業友好的州，我認為這肯定有助於公司前進的方向，專注於商業中的 C&I .我們在那裡的銀行界擁有經驗豐富的領導層，他們確實眾所周知並融入了該社區。從戰略上講，這次收購和那些關係與我們的模式很吻合。所以增長並不意外。只是慢了一點，因為我們必須接受文化。

And one last point that I would say is we were planning on expanding in Texas a lot more until we saw the Fed's action plans and what happened. And we curtailed a lot of that, call it, mid last year. But at some point, just like he talked -- that Chris just talked about in Florida and the opportunities there, Texas, from our perspective is wide open. Even though we had some pretty good relationships or not pretty good, I would say, great relationships. I think it's wide open. And it's something that we really need to get ourselves geared up to move forward in the state of Texas.

我要說的最後一點是，在我們看到美聯儲的行動計劃和發生的事情之前，我們計劃在德克薩斯州進一步擴張。我們在去年年中削減了很多，稱之為。但在某些時候，就像他所說的那樣——克里斯剛剛在佛羅里達談到了那裡的機會，從我們的角度來看，得克薩斯州是敞開的。即使我們有一些很好的關係或不太好，我會說，很好的關係。我認為它很開放。這是我們真正需要讓自己做好準備在德克薩斯州前進的事情。

Our next question comes from Andrew Terrell, Stephens.

我們的下一個問題來自斯蒂芬斯的安德魯·特雷爾。

Maybe on the margin, just to start. I appreciate all the commentary around some of the deposits and the cost. Can you help us out maybe with the spot cost of deposits, either interest-bearing or total at the end of the period? And then do you have the monthly margin in the month of March?

也許在邊緣，只是開始。我感謝所有關於一些存款和成本的評論。你能幫我們解決存款的即期成本問題嗎，無論是計息的還是期末的總額？然後你有三月份的月保證金嗎？

Yes. I'm going to rely on Amy for this, but I want to say the month of March NIM was about 1.64%. Amy, do you know what the spot cost was at the end of the quarter?

是的。我要依靠艾米，但我想說 3 月份的 NIM 約為 1.64%。艾米，你知道本季度末的現貨成本是多少嗎？

Amy stepped away. Spot costs at the end of the quarter was [238] for the average deposit cost.

艾米走開了。本季度末的平均存款成本為 [238]。

I mean that was the average of the quarter. You have the...

我的意思是那是本季度的平均值。你有...

When Amy gets back, we'll get you that number, okay?

艾米回來後，我們會給你那個號碼，好嗎？

Okay. That works. And then on the...

好的。這樣可行。然後在...

Excuse me, 252.

對不起，252。

252.

252.

252, there you go. Okay. Perfect. I appreciate it. And then on the expense side, I think you mentioned -- I might have bit of -- have it on my notes, right, $14 million of relief on the expense run rate from some of the actions taken over the past couple of quarters. I guess I'm trying to get a sense of how much of that are...

252，給你。好的。完美的。我很感激。然後在費用方面，我想你提到過——我可能有一點——記在我的筆記上，對，過去幾個季度採取的一些行動減少了 1400 萬美元的費用運行率。我想我是想了解其中有多少...

$3 million of executive bonus that we've agreed not to take.

我們同意不接受的 300 萬美元高管獎金。

Okay. Just with a lot of moving parts. Can you help us out with kind of thinking about an expense run rate going into the second quarter?

好的。只是有很多活動部件。你能幫我們考慮一下進入第二季度的費用運行率嗎？

So I think -- I mean, you're talking about how the expense management run rate will be?

所以我認為 - 我的意思是，你是在談論費用管理運行率如何？

Correct. Yes.

正確的。是的。

Yes. I think you can see that pretty much in what we've done this quarter. The only difference is those annualized figures that we saw from the previous month will just be carried forward. So I don't think there will be a tremendous amount of deviation.

是的。我想你可以從我們本季度所做的事情中看到這一點。唯一的區別是我們從上個月看到的那些年化數據將被結轉。所以我不認為會有很大的偏差。

A lot of the cost cuts were taken until late March or mid-March. So it's obviously going to be reduced from an employee standpoint. Is Amy back, I hate this.

許多成本削減措施一直持續到 3 月下旬或 3 月中旬。所以從員工的角度來看，它顯然會減少。艾米回來了嗎，我討厭這個。

Yes. Yes, Scott, I'm here.

是的。是的，斯科特，我在這裡。

Yes. So what do you think?

是的。所以你怎麼看？

Yes. So by looking at it in the next few quarters, our compensation and benefits will -- definitely will benefit from the risk that we had in March, right? So on an annualized basis. And we're definitely looking at probably a $3 million to $4 million downward on the compensation and benefits line. And I mean that's what I'm talking about per quarter. And everything has remained pretty consistent as we continue to [love] e-mail and see where we can minimize our costs, our expenditures, our operational costs. But as we move to 2024, we'll definitely continue to have the slight downward in our operational expense.

是的。因此，通過在接下來的幾個季度查看它，我們的薪酬和福利將 - 肯定會從我們三月份的風險中受益，對吧？所以按年計算。我們肯定會考慮在薪酬和福利方面減少 300 萬至 400 萬美元。我的意思是這就是我每個季度所說的。隨著我們繼續 [熱愛] 電子郵件並尋找可以最大限度地降低成本、支出和運營成本的地方，一切都保持一致。但隨著我們進入 2024 年，我們的運營費用肯定會繼續略有下降。

Okay. I appreciate the color there. That's helpful. And then for the deposit growth, I think since kind of the quarter that you might have referenced, have you seen the ECR-related deposit balances build back since quarter end?

好的。我欣賞那裡的顏色。這很有幫助。然後對於存款增長，我認為自您可能提到的那個季度以來，您是否看到與 ECR 相關的存款餘額自季度末以來有所回升？

Well, yes and no. I mean this is typically a cyclicality point that is at the lowest point in and around April with tax payments. But they -- to be quite candid, they have held pretty firm. We did see -- even though we brought back some of the balances, we've seen tax payments, both property taxes and federal and state tax go out of the bank a little bit. But our MSRs are starting to build their balances back. So the 2 months that are probably the 2 low points are April and October.

好吧，是的，不是。我的意思是，這通常是一個週期性點，在 4 月及前後納稅時處於最低點。但他們 - 坦率地說，他們非常堅定。我們確實看到了——儘管我們收回了一些餘額，但我們已經看到稅收支付，包括財產稅和聯邦和州稅都有一點從銀行流出。但我們的 MSR 正開始恢復平衡。因此，可能是 2 個低點的 2 個月是 4 月和 10 月。

Okay. And if I could sneak one more in there around just the dividend. I was hoping to maybe get some incremental color on kind of what prompted the dividend change. And then would you view this as kind of temporary and understanding kind of the glide path for margin and profitability improvement? Moving forward, I guess, should we expect the dividend to kind of walk back up as that occurs? And is there a targeted payout ratio you're looking at?

好的。如果我能在紅利附近再偷偷帶一個進去。我希望能在促使股息變化的原因上獲得一些增量色彩。然後你會認為這是一種暫時的和理解的利潤率和盈利能力改善的滑行路徑嗎？展望未來，我想，我們是否應該期望股息會在這種情況下回升？您是否正在查看有針對性的支付比率？

So obviously, with the reduction in net income to the point that we felt that we weren't sufficiently covering -- in discussions with the regulators as every bank is having in this country, capital preservation is of utmost importance in regulators' eyes and, frankly, in my eyes as well. So we felt that it was necessary to reduce from the $0.11 quarter to the $0.02 quarter. That gives us about a 20%, 25% coverage ratio. So we feel that that's ample.

很明顯，隨著淨收入減少到我們認為我們沒有充分涵蓋的程度 - 在與監管機構的討論中，就像這個國家的每家銀行一樣，資本保全在監管機構眼中是最重要的，而且，坦率地說，在我眼裡也是如此。因此，我們認為有必要將 0.11 美元的季度減少到 0.02 美元的季度。這給了我們大約 20%、25% 的覆蓋率。所以我們覺得這已經足夠了。

Yes, this is temporary. And yes, we will get back. As our NIM starts to expand back and we feel comfortable that we've got ample income coming in to cover the dividend, we will bring that back. At what point does it get back to $0.11, that's hard to say. But my prediction is right about NIM expanding in the latter half of this year, then we will modestly bring the dividend back up with that.

是的，這是暫時的。是的，我們會回來的。隨著我們的 NIM 開始向後擴張，我們對有足夠的收入來支付股息感到滿意，我們會把它帶回來。什麼時候會回到 0.11 美元，這很難說。但我對 NIM 在今年下半年擴張的預測是正確的，然後我們會適度地提高股息。

Our next question comes from Adam Butler, Piper Sandler.

我們的下一個問題來自亞當·巴特勒、派珀·桑德勒。

This is Adam on for Matthew Clark. Just switching over to the deposit side. I appreciate the color. So during the quarter and in March, there were about $450 million in outflows in deposits and about $120 million came back to the bank before quarter end. And then the advisory business saw roughly $100 million of that come back at quarter end too and that accounts for about half the...

這是馬修克拉克的亞當。只需切換到存款方。我很欣賞這種顏色。因此，在本季度和 3 月份，大約有 4.5 億美元的存款流出，大約 1.2 億美元在季度末之前回到了銀行。然後，諮詢業務在季度末也看到了大約 1 億美元的回報，約佔……的一半。

Well, if you go over to -- yes, I want to be clear on that, Adam. What flowed over to FFA largely was put into structured treasury or other type of security, fixed income security balances for our clients that they felt were yielding, frankly, with the short end of the curve, treasuries were yielding more than what most deposits were in the country.

好吧，如果你轉到——是的，我想說清楚，亞當。流向 FFA 的資金大部分被投入了結構性國庫券或其他類型的證券、固定收益證券餘額，供我們的客戶使用，他們認為這些餘額是有收益的，坦率地說，在曲線的短端，國庫券的收益高於大多數存款的收益國家。

It's not uncommon for us to get network conversations because we have the wealth advisory arm that we can recommend that rather than the leading institution to chase mine somewhere else, we can keep them in the company and that happens throughout the month. That's not just a leave and come back situation.

我們進行網絡對話並不少見，因為我們擁有財富諮詢部門，我們可以推薦它而不是領先的機構在其他地方追逐我，我們可以讓他們留在公司並且整個月都會發生這種情況。這不僅僅是離開和回來的情況。

Yes. But to be fair, all I'm trying to say is most of those are in latter maturities. And we believe at some point in time, that will return to -- as a deposit. But currently, I would tell you they're in treasuries that are laddered out a year to 2 years.

是的。但公平地說，我想說的是其中大部分都處於較晚的期限。我們相信在某個時間點，這將作為存款返回。但目前，我會告訴你他們在一年到兩年的國債中。

Okay. That makes sense. And then since April, I think that $80 million in deposit increase was core. So I'm assuming that, that was a recovery from the outflow as well. I was just trying to get a sense of that remaining roughly $150 million, do you assume that comes back throughout the remainder of the year?

好的。這就說得通了。然後自 4 月以來，我認為 8000 萬美元的存款增加是核心。所以我假設，這也是從流出中恢復過來的。我只是想了解一下剩下的大約 1.5 億美元，你認為這會在今年剩餘時間裡回來嗎？

We do. So the -- I mean, in those first initial couple of days, most people were shooting and asking questions later. I will tell you and Chris and I following up and, frankly, a lot of our employees following up with clients. All of them pretty much said the same thing. We love you, but we'll see you when things stabilize. What does that mean? Your guess is probably as good as ours. But I do believe that we have great relationships with even the folks that left. I don't blame them for maybe being a little bit scared because I wish the Board of Governors have may be taken a little stronger stance to say they would backstop regional bank's deposits. But I do believe we'll get those back. I believe confidence has to be built.

我們的確是。所以——我的意思是，在最初的幾天裡，大多數人都在開槍，然後再問問題。我會告訴你，克里斯和我會跟進，坦率地說，我們的很多員工都會跟進客戶。他們幾乎都說了同樣的話。我們愛你，但當事情穩定下來時我們再見。這意味著什麼？你的猜測可能和我們的一樣好。但我確實相信，即使是那些離開的人，我們也有很好的關係。我不怪他們可能有點害怕，因為我希望理事會可能採取更強硬的立場，表示他們將支持地區銀行的存款。但我確實相信我們會把它們拿回來。我相信必須建立信心。

It takes about 2 or 3 months of experience kind of the services institutions that went to. Some of them went through sort of execution that are probably not as strong as they thought. So as they go through that life cycle and experiencing the value proposition of the brand, they typically come back because we can give them things that they need and they want.

去的服務機構需要大約 2 或 3 個月的經驗。他們中的一些人經歷了某種可能沒有他們想像的那麼強烈的處決。因此，當他們經歷這個生命週期並體驗品牌的價值主張時，他們通常會回來，因為我們可以為他們提供他們需要和想要的東西。

Okay. That's great to hear. And then just briefly touch on some credit metrics. I think you mentioned it on the call, but I was curious that you may have mentioned that you don't have any office CRE exposure. Is that correct?

好的。聽到這個消息我很高興。然後簡要介紹一些信用指標。我想你在電話中提到過，但我很好奇你可能提到過你沒有任何辦公室 CRE 曝光。那是對的嗎？

Yes. We're not -- we've never really been in that space. Anything that we may have in that space likely came from an acquisition and is very, very de minimis relative to our entire portfolio.

是的。我們不是——我們從未真正進入過那個領域。我們在該領域可能擁有的任何東西都可能來自收購，並且相對於我們的整個投資組合而言非常非常微不足道。

On the hotel side, I think we have 2 loans, maybe a handful with the acquisition of Florida. We have no office space, very few strip centers, no malls. We -- I mean, when you think about the commercial real estate, we tend to focus on owner-occupied, non-owner-occupied multifamily. That's really the focus of our impetus. And if you look back over history, especially '08, '09 and '10, you saw delinquencies and defaults in the 11 basis point range, which was by far and away the lowest category in the commercial real estate space.

在酒店方面，我認為我們有 2 筆貸款，其中可能有一小部分是通過收購佛羅里達州獲得的。我們沒有辦公空間，很少有脫衣舞中心，也沒有購物中心。我們——我的意思是，當你考慮商業地產時，我們傾向於關注業主自用、非業主自用的多戶住宅。這確實是我們動力的重點。如果你回顧歷史，尤其是 08 年、09 年和 10 年，你會看到拖欠和違約率在 11 個基點範圍內，這是迄今為止商業房地產領域中最低的類別。

Let me give you an idea going -- stretching from then till now the new margin on the extra risk that you would take for what we think are those different types of commercial real estate, then our concentration in multifamily was only incremental. So you were taking on additional risk for a very relative small return on rate and we've never been one to sacrifice credit quality for rate.

讓我給你一個想法——從那時到現在，你會為我們認為的那些不同類型的商業房地產承擔額外風險的新利潤率，然後我們對多戶家庭的集中只是增量。因此，您要為相對較低的回報率承擔額外風險，而我們從來都不是為了利率而犧牲信用質量的人。

Okay. I appreciate the color there. And then just briefly touching on one more thing. I saw the delinquency loans increased about $16 million, $16.5 million during the quarter. I was just curious if you could touch on the nature of that increase, any commentary there.

好的。我欣賞那裡的顏色。然後再簡單地談談一件事。我看到拖欠貸款在本季度增加了約 1600 萬美元和 1650 萬美元。我只是想知道你是否可以談談這種增長的性質，以及那裡的任何評論。

Yes. That's related to single-family loans that had increased, but it's a very high net worth borrower. They had some issues and they're going to bring the long current, they've already made one payment, health issues, yes. They were unreachable due to those health issues. But other than working through their financial manager, I'm not expecting any challenges or losses in the current time.

是的。這與增加的單戶家庭貸款有關，但它是一個非常高淨值的借款人。他們遇到了一些問題，他們將帶來長流，他們已經支付了一筆款項，健康問題，是的。由於這些健康問題，他們無法聯繫到。但除了通過他們的財務經理工作外，我預計目前不會遇到任何挑戰或損失。

We have no further questions in the queue at this time. I would now like to turn the call back over to today's speakers.

目前隊列中沒有其他問題。我現在想把電話轉回給今天的發言人。

The events of this quarter were humbling for many banks, including us. We sold the negative impacts of the actions by the past. Fortunately, for all our stakeholders, we took decisive and immediate action and we were not cost flatfooted. I want to leave you with a few key points to take away from the quarter. We are proud of our financial performance for the quarter given the extraordinary list across the industry and believe we are well positioned.

本季度發生的事件令包括我們在內的許多銀行感到羞愧。我們出售了過去行為的負面影響。幸運的是，對於我們所有的利益相關者，我們採取了果斷和立即的行動，我們並沒有措手不及。我想給你留下幾個關鍵點，讓你從這個季度拿走。鑑於整個行業的非凡名單，我們為本季度的財務業績感到自豪，並相信我們處於有利地位。

Second, our deposit base remains strong as depositors have overwhelmingly chosen to return. We will also have grown our percentage of insured deposits and are working closely to ensure clients have the maximum coverage.

其次，我們的存款基礎依然強勁，因為絕大多數存款人都選擇返回。我們還將增加受保存款的比例，並密切合作以確保客戶獲得最大的保障。

Third, we have a strong liquidity position that gives us confidence in navigating uncertain times. Fourth, our securities portfolio allows us to actively manage our interest rate risk and gives us flexibility on our balance sheet. And finally, we believe that once we emerge from this liquidity crunch, our bank will emerge as a leader given our credit quality. I'm very pleased that our entire team responded and believe we are well positioned to weather this current crisis and ready to emerge as a leader among our regional bank peers.

第三，我們擁有強大的流動性頭寸，這讓我們有信心度過不確定的時期。第四，我們的證券投資組合使我們能夠積極管理利率風險，並使我們的資產負債表具有靈活性。最後，我們相信，一旦我們擺脫這種流動性緊縮，我們的銀行將以我們的信用質量脫穎而出。我很高興我們的整個團隊做出了回應，並相信我們有能力度過當前的危機，並準備好成為我們區域銀行同行中的領導者。

As a reminder, our earnings report and investor presentation can be found on the Investor Relations section of our website. Thank you, and have a great remainder of your day.

提醒一下，我們的收益報告和投資者介紹可以在我們網站的投資者關係部分找到。謝謝，祝您度過愉快的一天。

This does conclude today's program. Thank you for your participation. You may disconnect at any time.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接。