First Foundation Inc (FFWM) 2023 Q2 法說會逐字稿

Greetings, and welcome to First Foundation's Second 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，歡迎參加 First Foundation 2023 年第二季度收益電話會議。今天的通話正在錄音。今天發言的是第一基金會總裁兼首席執行官斯科特·卡瓦諾 (Scott Kavanaugh)；克里斯·納吉比（Chris Naghibi），首席運營官。

Before I hand the call over to Scott, please note that management will make certain predictive statements during today's call that reflects their current views and expectations about the company's performance and financial results. These forward-looking statements are made subject to the safe harbor statement included in today's earnings release.

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中做出某些預測性聲明，反映他們當前對公司業績和財務業績的看法和預期。這些前瞻性陳述是根據今天的收益發布中包含的安全港聲明做出的。

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

此外，一些討論可能包括非公認會計準則財務指標。如需更完整地討論可能導致實際結果與任何前瞻性陳述和非公認會計準則財務指標調節表存在重大差異的風險和不確定性，請參閱該公司向美國證券交易委員會提交的文件。現在我想將電話轉給總裁兼首席執行官斯科特·卡瓦諾 (Scott Kavanaugh)。請繼續。

Good morning, and welcome. Thank you for joining today's earnings conference call. Following the disruption in the financial industry in the first quarter, we have seen stabilization across the entire banking sector, and in the second quarter, we were able to squarely focus on executing against our strategy. We are extremely proud of the dedication and diligence of our team as we experienced total deposit growth, loan portfolio average yield increases and continued strength in our advisory and trust business.

早上好，歡迎光臨。感謝您參加今天的收益電話會議。在第一季度金融業受到干擾之後，我們看到整個銀行業趨於穩定，而在第二季度，我們能夠集中精力執行我們的戰略。我們對我們團隊的奉獻和勤奮感到非常自豪，因為我們經歷了總存款增長、貸款組合平均收益率增長以及我們諮詢和信託業務的持續實力。

We were able to get our loan-to-deposit ratio back below 100% and our percentage of insured and collateralized deposits to 88% of total deposits as of June 30, 2023, which we believe is an exceptional number comparatively. For the second quarter, we reported a net loss attributable to common shareholders of $212.3 million, representing a loss of $3.76 per share. Including a second quarter 2023 result is a noncash goodwill impairment charge totaling $215.3 million. The goodwill impairment is a noncash charge and has no impact on regulatory capital ratios, cash flows, liquidity position or the operations of the company and our ability to meet our clients' needs.

截至 2023 年 6 月 30 日，我們的貸存比已恢復到 100% 以下，保險存款和抵押存款佔總存款的比例達到 88%，我們認為相對而言這是一個特殊的數字。第二季度，我們報告普通股股東應占淨虧損為 2.123 億美元，相當於每股虧損 3.76 美元。包括 2023 年第二季度業績在內，非現金商譽減值費用總計 2.153 億美元。商譽減值是一項非現金費用，對監管資本比率、現金流、流動性狀況或公司運營以及我們滿足客戶需求的能力沒有影響。

Goodwill is evaluated for impairment annually in the fourth quarter, but the drastic change in the macroeconomic conditions and the Fed rate hikes that have negatively impacted our market valuation triggered an updated assessment. Excluding the impact of the goodwill impairment charge and the other adjustments, adjusted net income, which is a non-GAAP measure for the quarter, totaled $3.7 million or $0.07 a share. Adjusted net income attributable to common shareholders, also a non-GAAP measure, was $3.7 million for the second quarter, which excludes the goodwill impairment and other adjustments compared to the $8.3 million for the first quarter of 2023. Total revenues were $61.1 million for the quarter, a decrease of 13% compared to the $70.5 million for the first quarter due to a decrease in net interest income.

商譽每年都會在第四季度進行減值評估，但宏觀經濟狀況的劇烈變化和美聯儲加息對我們的市場估值產生負面影響，引發了更新的評估。排除商譽減值費用和其他調整的影響，調整後的淨利潤（該季度的非公認會計準則衡量標準）總計為 370 萬美元，即每股 0.07 美元。第二季度調整後歸屬於普通股股東的淨利潤（也是非公認會計準則衡量標準）為370 萬美元，其中不包括商譽減值和其他調整，而2023 年第一季度為830 萬美元。該季度總收入為6110 萬美元。由於淨利息收入減少，較第一季度的 7,050 萬美元減少了 13%。

Our adjusted return on average assets, a non-GAAP measure, ended the quarter at 0.11%, a decrease from the 0.25% in the prior quarter. Our operations remain stable and we remain confident in our business, given that we are seeing significant improvements in our deposit and loan profiles as well as stability in our liquidity and credit quality.

我們調整後的平均資產回報率（一項非公認會計準則衡量標準）本季度結束時為 0.11%，較上一季度的 0.25% 有所下降。我們的運營保持穩定，我們對我們的業務仍然充滿信心，因為我們的存款和貸款狀況顯著改善，流動性和信用質量也穩定。

As for our expectations for the year, I truly believe interest rate costs are troughing based on the fact that inflation is cooling, and all indications are that the Fed is towards the end of the tightening cycle. If this is the case, we should start to see improvements in our balance sheet and earnings. Related to operational efficiencies during the quarter, we continued to focus on cutting costs, including a small reduction in staff, reevaluations of all vendor management solutions and setting travel restrictions to manage cost better. In the quarter, we had $280,000 in severance costs recognized as a result of the reductions in force, achieving an estimated annualized cost savings of $2.5 million plus 15% benefits.

至於我們對今年的預期，我確實相信利率成本正在觸底，因為通脹正在降溫，而且所有跡像都表明美聯儲即將結束緊縮週期。如果是這樣的話，我們應該開始看到我們的資產負債表和收益有所改善。與本季度的運營效率相關，我們繼續專注於削減成本，包括小幅減少員工、重新評估所有供應商管理解決方案以及設置差旅限制以更好地管理成本。本季度，我們因裁員而確認了 280,000 美元的遣散費，預計年化成本節省 250 萬美元，外加 15% 的福利。

Cost saving initiatives along with the shrinking of the balance sheet remain a key focus in controlling expenses to improve our margin profile. We have also been working to achieve strategic alignment throughout our business with the significant synergies realized between our banking and wealth management teams that will lead to cost savings by trimming expenses.

成本節約舉措以及資產負債表的收縮仍然是控制費用以改善我們的利潤狀況的關鍵焦點。我們還一直致力於通過我們的銀行和財富管理團隊之間實現的顯著協同效應，在整個業務中實現戰略協調，這將通過削減開支來節省成本。

Our deposits increased from $10.1 billion in the first quarter to $10.8 billion in the second quarter, up from the $9.5 billion as of June 30, 2022. Deposit levels hit a low point in the prior quarter and increased by $755 million during the current quarter as our deposit inflows and outflows normalized. Of the $755 million increase in deposits for the quarter, brokered deposits accounted for $318 million while $437 million were core deposits. This brings total brokered deposits to 20.4% of total deposits as of June 30, 2023, compared to the 18.8% as of March 31, 2023, whereas core deposits were 80% as of June 30, 2023, and 81% as of March 31, 2023.

我們的存款從第一季度的101 億美元增加到第二季度的108 億美元，高於截至2022 年6 月30 日的95 億美元。存款水平在上一季度觸及低點，本季度增加了7.55億美元。我們的存款流入和流出正常化。在本季度增加的 7.55 億美元存款中，經紀存款佔 3.18 億美元，核心存款佔 4.37 億美元。截至2023年6月30日，經紀存款總額佔總存款的20.4%，而截至2023年3月31日為18.8%，而核心存款截至2023年6月30日為80%，截至3月31日為81% ，2023。

The digital banking channel continued to grow as a source of new depository accounts, while account balances totaling $913 million at June 30, 2023, accounting for over 90% of all new client accounts. Deposits increased to 2.85% for the second quarter of 2023 compared to 2.38% for the prior quarter and 0.28% for the second quarter of 2022. Insured and collateralized deposits accounted for approximately 88% of total deposits as of June 30, 2023, compared to 85% of total deposits as of March 31, 2023. Strong core deposits are very key to every bank in terms of building franchise value, and our pipeline of our core deposits remains strong while we continue to make significant strides on that front. We are encouraged by the levels of deposits that have continued to return. Chris will touch more on this in a minute.

數字銀行渠道作為新存款賬戶的來源持續增長，截至 2023 年 6 月 30 日，賬戶餘額總計 9.13 億美元，佔所有新客戶賬戶的 90% 以上。 2023 年第二季度存款率增至2.85%，而上一季度為2.38%，2022 年第二季度為0.28%。截至2023 年6 月30 日，受保和抵押存款約佔存款總額的88%，而上一季度為2.38%，2022 年第二季度為0.28%。截至2023 年3 月31 日，佔存款總額的85%。就建立特許經營價值而言，強勁的核心存款對於每家銀行都至關重要，在我們繼續在這方面取得重大進展的同時，我們的核心存款渠道仍然強勁。我們對存款持續回流的水平感到鼓舞。克里斯稍後會詳細討論這一點。

Our loan-to-deposit ratio has continued to fall. It was 97.9% as of June 30, 2023 and 93.1% as of July 20, 2023. This is a significant improvement to the 106.1% as of March 31, 2023. This ratio is now below 100%. We believe this will continue to improve, and we look to modestly shrink the balance sheet while adding deposits. This improvement in liquidity comes primarily from our clients returning, with some of the change coming from brokered deposits. Deposits have been a large focus for us on the front line and we are continuing to make steady progress. Many customers who left in the days following the regional banking panic have returned, in large part because of our attractive rates on deposits and exceptional client terms. The improvement in the loan-to-deposit ratio is a primary focus for us, and we continue to monitor and manage this closely.

我們的貸存比持續下降。截至2023年6月30日為97.9%，截至2023年7月20日為93.1%。這比截至2023年3月31日的106.1%有顯著改善。該比率目前低於100%。我們相信這種情況將繼續改善，我們希望在增加存款的同時適度收縮資產負債表。流動性的改善主要來自我們的客戶回歸，其中一些變化來自經紀存款。存款一直是我們一線工作的重點，並且我們正在繼續取得穩步進展。許多在地區銀行業恐慌後幾天離開的客戶又回來了，這在很大程度上是因為我們有吸引力的存款利率和特殊的客戶條件。貸存比的改善是我們的首要關注點，我們將繼續密切監控和管理。

We continue to have confidence in the markets we are in, notably, our new headquarters in Dallas, which continues to be a primary destination for many corporations evaluating relocation. In terms of our deposits by type, we remain balanced among noninterest-bearing, interest-bearing, money market and savings and certificates of deposits. Noninterest-bearing demand deposits measured 25% of deposits as of June 30 compared to 23% as of March 31. Certificates of deposits accounted for 26% of total deposits as of June 30, 2023, and 24% as of March 31, 2023.

我們仍然對我們所在的市場充滿信心，尤其是我們在達拉斯的新總部，它仍然是許多評估搬遷的公司的主要目的地。從存款品種來看，無息存款、計息存款、貨幣市場存款和存單存款保持平衡。截至6月30日，無息活期存款佔存款的25%，而截至3月31日，這一比例為23%。截至2023年6月30日，存款證佔存款總額的26%，截至2023年3月31日，佔存款總額的24%。

Borrowings were $976 million as of June 30, 2023, compared to the $2.3 billion and $494 million as of March 31, 2023 and June 30, 2022, respectively. The decrease in borrowings compared to the prior quarter was primarily due to the paydown of $390 million in variable rate FHLB advances and $900 million in fixed rate FHLB advances. As deposit levels stabilized and began to return to previous levels during the second quarter of 2023, some of these additional borrowings were paid down. Borrowings have declined further to $584 million as of July 20, 2023.

截至2023年6月30日，借款為9.76億美元，而截至2023年3月31日和2022年6月30日的借款分別為23億美元和4.94億美元。與上一季度相比，借款減少主要是由於償還了 3.9 億美元的可變利率 FHLB 預付款和 9 億美元的固定利率 FHLB 預付款。隨著存款水平穩定並在 2023 年第二季度開始恢復到之前的水平，其中一些額外借款得到了償還。截至 2023 年 7 月 20 日，借款進一步下降至 5.84 億美元。

First Foundation continues to benefit from a growing liquidity position. Our on- and off-balance sheet liquidity increased to $4.3 billion for the quarter. To drill in a little bit, our on-balance sheet liquidity as of June 30 was $926 million in cash and cash equivalents, representing 7.2% of total deposits on balance sheet. Our off-balance sheet consisted of available credit facilities of $2.3 billion with the Federal Home Loan Bank, $900 million with the Federal Reserve Discount Window and $145 million available in uncommitted credit lines. The ratio of liquidity to uninsured and collateralized deposits is 3.3x coverage, which is notable as our liquidity profile continues to be an important differentiator for First Foundation.

第一基金會繼續受益於不斷增長的流動性狀況。本季度我們的表內和表外流動性增加至 43 億美元。稍微深入一點，截至 6 月 30 日，我們的資產負債表內流動性為現金和現金等價物 9.26 億美元，佔資產負債表存款總額的 7.2%。我們的表外資產包括聯邦住房貸款銀行提供的 23 億美元可用信貸額度、美聯儲貼現窗口提供的 9 億美元可用信貸額度以及未承諾信貸額度的 1.45 億美元。流動性與未保險和抵押存款的比率為 3.3 倍，這一點值得注意，因為我們的流動性狀況仍然是 First Foundation 的重要差異化因素。

Looking at our Wealth Management and Trust business, we are close to reaching our historical high for assets under management as FFA has seen strong performance and secured new client relationships. This is especially impressive considering the tough times that we have had over the previous few years. We continue to experience meaningful contributions to the firm as evidenced by a combined business unit revenue of $9 million for the quarter. This includes $7.1 million in investment advisory fees and $1.9 million in trust administration and consulting fees.

看看我們的財富管理和信託業務，我們的管理資產已接近達到歷史最高水平，因為 FFA 表現強勁並贏得了新的客戶關係。考慮到我們過去幾年所經歷的艱難時期，這一點尤其令人印象深刻。我們繼續為公司做出有意義的貢獻，本季度業務部門合併收入為 900 萬美元就證明了這一點。其中包括 710 萬美元的投資諮詢費和 190 萬美元的信託管理和諮詢費。

This combined business unit revenue, coupled with other recurring sources of noninterest income from our banking unit, accounted for 20% of the company's total revenue for the quarter. Assets under management increased by $100 million during the second quarter to $5.3 billion compared to $5.2 billion at the end of the first quarter. Trust assets under advisement ended the quarter at $1.2 billion compared to $1.3 billion as of the first quarter but we believe continues to have a very strong pipeline. We remain well capitalized with a Tier 1 risk-based capital ratio of 11.34% at quarter end and exceeding all Basel III regulatory requirements to be considered a well-capitalized deposit institution.

該業務部門的合併收入，加上我們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 20%。第二季度管理資產增加 1 億美元，達到 53 億美元，而第一季度末為 52 億美元。截至本季度末，顧問信託資產為 12 億美元，而第一季度為 13 億美元，但我們相信仍然擁有非常強大的管道。我們的資本充足，季度末的一級風險資本率為 11.34%，超過了巴塞爾 III 的所有監管要求，被視為資本充足的存款機構。

Our risk-based capital ratios improved this quarter. We also declared and approved, subject to regulatory approval, a second quarter cash dividend of $0.02 per share. Tangible book value per share ended the quarter at $16.12 compared to $16.17 for the prior quarter. The difference of $0.05 per share resulted from a $0.02 dividend paid to shareholders and $0.03 in AOCI.

我們的基於風險的資本比率本季度有所改善。我們還宣布並批准第二季度現金股息每股 0.02 美元，但須經監管部門批准。本季度末每股有形賬面價值為 16.12 美元，上一季度為 16.17 美元。每股 0.05 美元的差異是由於支付給股東的股息 0.02 美元和 AOCI 的 0.03 美元造成的。

I will close by saying again how appreciative I am for the team's hard work and dedication. It's been a challenging time but I'm confident that we have continued to take all the right measures to rightsize the business and put First Foundation on the current path going forward. We are able to weather these challenging times and emerge with increased deposits while maintaining our strong liquidity position.

最後，我要再次表達我對團隊的辛勤工作和奉獻精神的感激之情。這是一個充滿挑戰的時期，但我相信我們將繼續採取一切正確的措施來調整業務規模，並使 First Foundation 走上當前的前進道路。我們能夠度過這些充滿挑戰的時期，並在保持強勁的流動性狀況的同時增加存款。

The credit quality of our portfolio remains a key differentiator for us, and we continue to grow the Wealth and Trust business and exceed all minimum regulatory requirements to be considered a well-capitalized depository institution. All of our risk-based capital ratios improved, as did our ratio of uninsured to insured and collateralized deposits, which makes us proud of how far we have come in a short period of time.

我們投資組合的信用質量仍然是我們的一個關鍵區別因素，我們繼續發展財富和信託業務，並超過所有最低監管要求，被視為資本充足的存款機構。我們所有基於風險的資本比率均有所改善，未投保與投保和抵押存款的比率也有所改善，這讓我們對在短時間內取得的進展感到自豪。

We recognize that there are aspects of our business that we can and cannot control. We can control our revenues and expenses but we can't control the Fed's decisions around interest rates. We are focusing on the areas of our business that we can control and remaining diligent in mitigating the risk and the aspects we can. As always, client service remains a top priority of First Foundation and is what draws clients to the bank with us. We remain proactive in helping clients manage all of these important financial decisions from everyday deposits to wealth management solutions. Navigating market conditions with client-first mentality is the key to our business and core franchise and has only gotten stronger.

我們認識到，我們業務的某些方面是我們能夠控制和無法控制的。我們可以控制我們的收入和支出，但我們無法控制美聯儲的利率決策。我們專注於我們可以控制的業務領域，並努力降低風險和我們可以控制的方面。一如既往，客戶服務仍然是 First Foundation 的首要任務，也是吸引客戶來到我們銀行的原因。我們仍然積極主動地幫助客戶管理從日常存款到財富管理解決方案的所有這些重要財務決策。以客戶至上的心態駕馭市場狀況是我們業務和核心特許經營的關鍵，並且只會變得更加強大。

Now I will turn the call over to Chris and we will go over the portfolio in more detail.

現在我將把電話轉給克里斯，我們將更詳細地討論投資組合。

Thank you, Scott. As Scott mentioned, we are happy to see the stabilization in the financial services sector, following one of the most challenging quarters in recent history. Moving to our lending operations. As of June 30, 2023, our loan portfolio is comprised of 50% multifamily loans, 33% commercial business loans, 9% consumer and single-family residential loans, 6% nonowner-occupied commercial real estate and 2% of land and construction loans, which are selectively and carefully considered for our most valued clients. The loan portfolio composition did not change materially from the first quarter of 2023.

謝謝你，斯科特。正如斯科特提到的，我們很高興看到金融服務業在經歷了近代歷史上最具挑戰性的季度之一後趨於穩定。轉向我們的貸款業務。截至2023年6月30日，我們的貸款組合包括50%的多戶貸款、33%的商業企業貸款、9%的消費者和單戶住宅貸款、6%的非業主自用商業房地產以及2%的土地和建築貸款，這些都是為我們最尊貴的客戶選擇性和仔細考慮的。貸款組合構成與 2023 年第一季度相比沒有重大變化。

Loan portfolio average yield increased to 4.69% in the second quarter compared to 4.54% in the prior quarter and 3.86% in the second quarter of 2022, respectively. Average yields on new loan fundings were 7.90% in the second quarter compared to 7.40% in the prior quarter and 3.73% in the second quarter of 2022, respectively. We have continued to strategically temper loan originations. Loan originations were $474 million for the quarter, which were primarily high-quality adjustable rates, C&I, SBA and mortgage lending. Loan balances decreased to $10.6 billion as of June 30, 2023, compared to $10.7 billion as of March 31, 2023, an increase $1.6 billion or 18% compared to $8.9 billion as of June 30, 2022.

第二季度貸款組合平均收益率增至 4.69%，而上一季度為 4.54%，2022 年第二季度為 3.86%。第二季度新增貸款資金的平均收益率為 7.90%，而上一季度為 7.40%，2022 年第二季度為 3.73%。我們繼續從戰略上控制貸款發放。本季度發放的貸款為 4.74 億美元，主要是高質量的可調利率、C&I、SBA 和抵押貸款。截至2023年6月30日，貸款餘額下降至106億美元，而截至2023年3月31日為107億美元，較截至2022年6月30日的89億美元增加16億美元，增幅為18% 。

Loan fundings totaled $474 million offset by loan payoffs of $559 million in the quarter. Our net loan activity over the quarter was decreased by line paydowns and scheduled payments and prepayments. Our cost of funds is stabilizing, which is moving our loan portfolio in the right direction.

本季度貸款資金總額為 4.74 億美元，被貸款償還額 5.59 億美元所抵消。我們本季度的淨貸款活動因行還款、定期付款和預付款而減少。我們的資金成本正在穩定，這正在使我們的貸款組合朝著正確的方向發展。

Looking at the breakdown of loans that we have originated so far year-to-date, the percentages are as follows: commercial business loans, 91%; multifamily, 3%; single-family, 2%; and other investments at 4%. We have significantly decreased the number of multifamily originations this year as a part of our strategy to halt fixed rate lending. Our commercial business portfolio is diversified with no sector comprising more than 1/3 of the portfolio and only 12% of the portfolio exposed to commercial real estate. It is always important to note that we accomplished this without changing our high underwriting standards and our NPAs decreased to 12 basis points for the quarter. This is also reflected in our conservative underwriting standards as evidenced by our LTV of 54% for multifamily loans and 49% for single-family loans.

從今年迄今我們發放的貸款細目來看，百分比如下：商業企業貸款，91%；多戶型，3%；單戶家庭，2%；及其他投資4%。作為停止固定利率貸款戰略的一部分，今年我們大幅減少了多戶家庭的數量。我們的商業業務投資組合多元化，沒有一個行業佔投資組合的比例超過 1/3，只有 12% 的投資組合涉及商業房地產。值得注意的是，我們在沒有改變高承保標準的情況下實現了這一目標，並且本季度我們的不良資產減少至 12 個基點。這也反映在我們保守的承保標準中，多戶貸款的 LTV 為 54%，單戶貸款的 LTV 為 49%。

This highlights the bank's high credit quality, conservative underwriting and disciplined lending practices during these uncertain financial conditions. We have maintained an appropriate risk appetite. We continue to temper all fixed rate lending in multifamily and, for the most part, in single-family and remain focused on making adjustable rate loans, including C&I, MSR and SBA. These are upper-tier credit instruments that give us good deposit opportunities. Our higher-yielding C&I straight adjustable loans are helping to offset our fixed rate loans.

這突顯了該銀行在不確定的金融環境下的高信用質量、保守的承保和嚴格的貸款做法。我們保持適度的風險偏好。我們繼續限制多戶家庭以及大部分單戶家庭的所有固定利率貸款，並繼續專注於提供可調利率貸款，包括 C&I、MSR 和 SBA。這些是高級信貸工具，為我們提供了良好的存款機會。我們收益較高的工商業直接可調貸款正在幫助抵消我們的固定利率貸款。

Let's pivot to multifamily. Although we have been originating far fewer multifamily loans, our multifamily loan portfolio remains a significant proportion of our loan portfolio and remains a best-in-class asset. Multifamily loans continue to be the strongest performing asset class across all commercial real estate. Our loan-to-value ratio of our multifamily portfolio has fallen to 54%. Our multifamily portfolio is diversified across geographies, with the largest concentration in California.

讓我們轉向多戶家庭。儘管我們發放的多戶貸款少得多，但我們的多戶貸款組合仍然占我們貸款組合的很大一部分，並且仍然是一流的資產。多戶家庭貸款仍然是所有商業房地產中表現最強勁的資產類別。我們多戶住宅投資組合的貸款價值比已降至 54%。我們的多戶型投資組合在各個地區實現多元化，其中最集中在加利福尼亞州。

We have also been proactive in restructuring some of our multifamily portfolio, moving it to a 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'm proud to reiterate that we have never defaulted on our multifamily loans in the history of this firm. And I want to remind everyone that we have very little to no exposure to construction, hotels or commercial office space.

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，在本公司的歷史上，我們從未拖欠過多戶家庭貸款。我想提醒大家，我們很少甚至沒有接觸建築、酒店或商業辦公空間。

Our credit quality remains pristine and our NPA ratio decreased to 12 basis points. Our total delinquent loans as a percentage of total loans decreased to 0.16% as of June 30, 2023, from 0.45% as of March 31, 2023. Maintaining good credit quality is a cornerstone of our business model. As Scott mentioned, our percentage of insured and collateralized deposits increased to 88% as of June 30, 2023, an increase from the 85% as of last quarter end. We are pleased to see continued growth in our insured and collateralized deposits.

我們的信用質量保持良好，不良資產比率下降至 12 個基點。截至2023年6月30日，我們的拖欠貸款總額佔貸款總額的百分比從截至2023年3月31日的0.45%下降至0.16%。保持良好的信貸質量是我們業務模式的基石。正如斯科特提到的，截至 2023 年 6 月 30 日，我們的保險和抵押存款百分比增加至 88%，高於上季度末的 85%。我們很高興看到我們的保險和抵押存款持續增長。

Our deposit costs increased to 2.85% for the second quarter compared to 2.38% for the prior quarter and 0.28% for the second quarter of 2022. Unlike many other banks that were defending their low rates on deposits, we were willing to move client funds up, commensurate with how the Fed was moving rates, an important distinction as people have realized they can make money on their deposits. Therefore, our deposit costs have already reflected of the current economic environment, whereas other banks have or will have to play catch-up to the Fed.

第二季度我們的存款成本上升至 2.85%，而上一季度為 2.38%，2022 年第二季度為 0.28%。與許多其他捍衛低存款利率的銀行不同，我們願意將客戶資金調高，與美聯儲調整利率的方式相稱，這是一個重要的區別，因為人們已經意識到他們可以通過存款賺錢。因此，我們的存款成本已經反映了當前的經濟環境，而其他銀行已經或將不得不追趕美聯儲。

The breakdown of our current deposits is as follows: money market and savings, 29%; certificates of deposit, 26%; interest-bearing demand deposit, 21%; noninterest-bearing demand deposits, 25%. Our deposits are diversified with geographic distribution with California accounting for 36% of total deposits, Florida at 19% and Texas at 9%, which makes up the majority of our deposit portfolio and other states making up 32% of the total.

我們的活期存款細分如下：貨幣市場和儲蓄，29%；存款證，26%；計息活期存款，21%；無息活期存款，25%。我們的存款地理分佈多樣化，加利福尼亞州佔總存款的36%，佛羅里達州佔19%，德克薩斯州佔9%，占我們存款組合的大部分，其他州佔32%。

Moving to NIM. Net interest income was $49 million for the second quarter of 2023 compared to $59 million for the prior quarter. Interest income increased from $137 million in the first quarter to $145 million in the second quarter of 2023 due to increases in both average interest-earning asset balances as well as average yields earned on such balances.

搬到NIM。 2023 年第二季度的淨利息收入為 4900 萬美元，而上一季度為 5900 萬美元。由於平均生息資產餘額以及此類餘額賺取的平均收益率的增加，利息收入從第一季度的 1.37 億美元增加到 2023 年第二季度的 1.45 億美元。

Interest expense was $96.3 million for the second quarter of 2023 compared with $78.2 million for the prior quarter. This increase was due to increases in both average interest-bearing liability balances as well as average rates paid on such balances. Our NIM for the second quarter was 1.51% compared to 1.83% for the prior quarter, which reflects the interest rate environment and the continued pressure by the Fed's action. We will continue to strategically strengthen the balance sheet slightly to regain profitability.

2023 年第二季度的利息支出為 9630 萬美元，而上一季度為 7820 萬美元。這一增長是由於平均有息負債餘額以及此類餘額支付的平均利率增加所致。我們第二季度的淨息差為 1.51%，而上一季度為 1.83%，這反映了利率環境以及美聯儲行動帶來的持續壓力。我們將繼續戰略性地略微強化資產負債表，以恢復盈利能力。

Noninterest income was $12.1 million for the second quarter compared to $11.7 million in the first quarter and $13.4 million in the second quarter of 2022. Noninterest expense was $272.8 million in the second quarter, which included $215.3 million in a goodwill impairment charge. Excluding goodwill impairment charges, noninterest expense was $57.5 million in the second quarter compared to $59.3 million for the first quarter and $48.8 million for the second quarter of 2022.

第二季度非利息收入為1210 萬美元，而2022 年第一季度為1170 萬美元，第二季度為1340 萬美元。第二季度非利息支出為2.728 億美元，其中包括2.153 億美元的商譽減值費用。不計商譽減值費用，第二季度非利息支出為 5750 萬美元，而第一季度為 5930 萬美元，2022 年第二季度為 4880 萬美元。

Our efficiency ratio for the second quarter was 92.5% compared to 84.5% for the first quarter. The quarter's increase in the efficiency ratio is largely attributable to the aforementioned reduction in net interest income during the quarter, as the ratio is a measure of noninterest expense to revenue, net interest income plus noninterest income on an adjusted basis.

我們第二季度的效率為 92.5%，而第一季度為 84.5%。本季度效率比率的上升主要歸因於上述本季度淨利息收入的減少，因為該比率是衡量非利息支出與收入、淨利息收入加上調整後的非利息收入的指標。

Compensation and benefits were $21 million in the second quarter of 2023 compared to $25.3 million in the first quarter and $27.6 million in the second quarter of 2022. The decrease in compensation and benefits is the result of efforts to maximize efficiency and optimize the workforce in the face of slowing loan growth and higher interest expense.

2023 年第二季度的薪酬和福利為2100 萬美元，而第一季度為2530 萬美元，2022 年第二季度為2760 萬美元。薪酬和福利的減少是為了最大限度地提高效率和優化員工隊伍的結果。面對貸款增長放緩和利息支出上升的情況。

Now let's briefly touch on our securities portfolio. Our security portfolio totaled $1 billion with HTM of $815 million and AFS of $201 million, down from $1.1 billion from the prior quarter. The allowance for credit losses for investments was $8.5 million for the quarter compared to $12.3 million in the prior quarter and $11.2 million for the second quarter of 2022. The decreases from the prior quarter were primarily due to the reversal of $4 million in allowances for credit losses recorded on several interest-only strip securities that were fully written off during the quarter, resulting in a net income statement impact of only $15,000. Investment securities portfolio average yield decreased to 2.39% in the quarter compared to 2.73% in the prior quarter.

現在讓我們簡要介紹一下我們的證券投資組合。我們的安全投資組合總額為 10 億美元，其中 HTM 為 8.15 億美元，AFS 為 2.01 億美元，低於上一季度的 11 億美元。本季度投資信貸損失準備金為 850 萬美元，而上一季度為 1,230 萬美元，2022 年第二季度為 1,120 萬美元。較上一季度減少的主要原因是逆轉了 400 萬美元信貸準備金幾種只付息剝離證券記錄的損失在本季度被完全沖銷，對淨利潤表的影響僅為15,000 美元。本季度投資證券投資組合平均收益率下降至 2.39%，而上一季度為 2.73%。

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

這個時候我們準備好提問，我會把它交還給接線員。

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

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

Congratulations on a great quarter. Nice to see the stock reacting favorably. I did just want to touch on maybe some of the deposit trends that you guys saw in the quarter, and if you could help us understand maybe how flows trended. You touched on it, Scott, a bit, some of the clients coming back. But maybe just help us understand kind of how flows were in the quarter and your thoughts on deposit growth going forward. It sounds like this -- the trends that you saw, maybe we saw growth later in the quarter, and it's actually persisted here in the third quarter with your point that borrowings are continuing to pay down. Just curious what you're seeing out there.

祝賀您度過了一個美好的季度。很高興看到股票反應良好。我只是想談談你們在本季度看到的一些存款趨勢，以及你們是否可以幫助我們了解流量趨勢。斯科特，你提到了一點，一些客戶回來了。但也許只是幫助我們了解本季度的流量情況以及您對未來存款增長的想法。聽起來是這樣的——你看到的趨勢，也許我們在本季度晚些時候看到了增長，而且實際上在第三季度持續存在，你認為藉款正在繼續償還。只是好奇你在外面看到了什麼。

Yes. So we were very fortunate. We've got great clients. Of course, I think after the failures at several banks out there, a lot of people got skittish and did a reactionary thing by moving out. But I think as time went by and people had a chance to think about things, some went to the larger banks that aren't paying well and had time to think about it. They started returning some of their deposits.

是的。所以我們非常幸運。我們有很棒的客戶。當然，我認為在幾家銀行倒閉之後，很多人變得不安，並通過搬出做了反動的事情。但我認為，隨著時間的推移，人們有機會思考問題，一些人去了支付不佳的大型銀行，並有時間考慮。他們開始退還部分押金。

Many of them never truly withdrew all their balances. They withdrew a big portion. And so they started bringing back some of those deposits over a period of time. They've continued to grow while at the same time a pretty good pipeline building of other deposits. And I will say, David, to the extent that we are doing any lending so I'm going to go ahead and touch on that, we're really requiring or severely looking to add to deposit relationships.

他們中的許多人從未真正提取過所有餘額。他們撤回了很大一部分。因此，他們開始在一段時間內收回部分存款。它們持續增長，同時其他礦藏的管道建設也相當不錯。我想說，大衛，就我們正在進行的任何貸款而言，我將繼續討論這一點，我們確實需要或認真尋求增加存​​款關係。

So our pipeline is really pretty healthy. I think August will be good. We've got some relationships, I think, are going to come in the September time frame. I would caveat that the difference between quarter end and July 20 that we talked about, that was pretty strong growth. And I probably would temper the growth and say on an annualized basis, you won't see 70% growth. But I'll tell you I think deposit trends are going to continue, our loan balances are going to continue to shrink. Our goal is to continue to pay off any borrowings that we have out there and get to a point that we're in a position where our borrowings are less. And then obviously, we'll start focusing on brokered -- reducing brokered deposit balances.

所以我們的管道確實非常健康。我認為八月會很好。我認為我們已經建立了一些關係，這些關係將在九月的時間範圍內建立。我需要注意的是，我們談到的季度末和 7 月 20 日之間的差異是相當強勁的增長。我可能會緩和增長並說，按年化計算，你不會看到 70% 的增長。但我會告訴你，我認為存款趨勢將繼續下去，我們的貸款餘額將繼續縮減。我們的目標是繼續償還我們現有的所有借款，並達到借款減少的程度。顯然，我們將開始關注經紀業務——減少經紀存款餘額。

I probably should add that during just recently, maybe a couple of weeks ago, we took $100 million and went out 5 years on the -- with the Home Loan Bank advance. That saved us about 120 basis points in interest cost that really was not borne out in the second quarter and will be more realized starting in the third quarter. And we did another $200 million with the Federal Home Loan Bank that reduced our interest expense, I believe, a total of 170 basis points. So that should help also reduce our interest cost on a go-forward basis.

我可能應該補充一點，就在最近，也許是幾週前，我們拿了 1 億美元，用住房貸款銀行預支了 5 年。這為我們節省了約 120 個基點的利息成本，這一點在第二季度並未得到證實，但從第三季度開始將得到更多實現。我們又向聯邦住房貸款銀行提供了 2 億美元，我相信這總共減少了我們的利息支出 170 個基點。因此，這也應該有助於降低我們未來的利息成本。

That's extremely helpful. And maybe let's dig into that a bit. So we got the Fed hike yesterday, right? And so if we are assuming that deposit costs do stabilize here, that the Fed pauses, could you help us maybe think through where roll-off rates are on the loan portfolio? Obviously, new loan yields you talked about in the 7.90s, but just kind of again, the pace of roll-off in the next 12 months and where roll-off rates are. Just trying to get a sense of the asset repricing side and basically where NIM could trough and how to think about the pace of expansion going forward as deposits costs stabilize and we continue to reprice higher.

這非常有幫助。也許讓我們深入探討一下。那麼我們昨天就知道美聯儲加息了，對嗎？因此，如果我們假設存款成本確實穩定下來，美聯儲暫停行動，您能否幫助我們思考貸款組合中的滾存利率在哪裡？顯然，您在 7.90 年代談到了新的貸款收益率，但同樣是未來 12 個月的滾滾速度以及滾滾利率。只是想了解資產重新定價方面的情況，基本上了解淨息差可能會在哪裡出現低谷，以及隨著存款成本穩定和我們繼續走高重新定價，如何考慮未來的擴張步伐。

Well, I'll touch a little bit on some of the yields that we're putting on. Last quarter, like you said, the average yield coming on with 7.90%. That has since improved and the average yield going on is about 8.25% to maybe slightly higher overall. And of course, that will go higher just like some of the deposit costs will.

好吧，我將稍微談談我們所提供的一些收益。上個季度，正如您所說，平均收益率為 7.90%。此後情況有所改善，平均收益率約為 8.25%，總體可能略高。當然，就像一些存款成本一樣，這個數字會更高。

But like I said, I think initially, some of the deposits will go up commensurate. I think you're going to see betas for us trend down relative to what you've seen in prior quarters, which is hugely important for us, which is also why I think there's going to be a trough but with the yields that are coming on are coming on at higher levels.

但就像我說的，我認為最初，一些存款會相應增加。我認為你會看到我們的貝塔值相對於前幾個季度呈下降趨勢，這對我們來說非常重要，這也是為什麼我認為將會出現一個低谷，但隨著收益率的到來正在更高的水平上發生。

But I think in terms of payoffs, right now, I would tell you, some of the multifamily stuff seasonality-wise, some of the multifamily stuff has slowed down on the prepayments. We're still seeing some 3.5%, 3.75% type coupons payoff and I know people find that astounding. We just had a 2 5/8% single-family payoffs in the portfolio. But I think historically, we've had somewhere between $550 million, $600 million payoff. The summer months do tend to slow down and then you see activity pick back up late in August, early September.

但我認為就回報而言，現在我會告訴你，一些多戶家庭的東西從季節性角度來看，一些多戶家庭的預付款已經放緩。我們仍然看到一些 3.5%、3.75% 類型的優惠券回報，我知道人們覺得這令人震驚。我們的投資組合中只有 2 5/8% 的單戶收益。但我認為從歷史上看，我們已經獲得了 5.5 億至 6 億美元的回報。夏季月份確實會放緩，然後您會看到活動在八月末、九月初恢復。

And I think you'll see a stream of prepayments tick back up -- that will tick back up, including some of the multifamily. But I would expect, I think this quarter from a funding perspective will be slightly less than what we did last quarter, but I think the payoffs will be about the same. So you'll probably see a little bit more shrinkage in the loan balance this quarter. Chris, you want to add anything?

我認為你會看到一系列預付款的增加——這將會增加，包括一些多戶家庭。但我預計，從資金角度來看，本季度的情況將略低於上季度，但我認為回報將大致相同。因此，本季度的貸款餘額可能會出現更多收縮。克里斯，你想補充什麼嗎？

I think you covered it certainly. The seasonality aspect is really interesting. What I'll also add is if you're looking to project forward, there are a little bit of growth -- historical growth considerations to think about there. We grew exponentially in the last several years. And in that, you're going to see more payoffs coming due from the adjustable rate mortgage loans that are on the multifamily book, particularly as we enter into 2024.

我想你肯定涵蓋了它。季節性方面確實很有趣。我還要補充的是，如果你希望向前推進，那麼需要考慮一些增長——歷史增長的考慮因素。在過去的幾年裡，我們呈指數級增長。這樣，您將看到多戶家庭賬簿上的可調整利率抵押貸款帶來更多回報，特別是在進入 2024 年時。

Okay, that's helpful. And then maybe just staying on the multifamily side. Chris, you touched on it a bit but it feels like maybe there's some misperceptions out there when I talk to investors on multifamily and differences in rent control versus nonrent control and just the health of the multifamily market maybe on the West Coast. Could you maybe just expound on kind of what you were talking about, what you're seeing out there, what you're hearing from clients? And just any other commentary on the multifamily book and the health of -- from a credit perspective on those loans?

好的，這很有幫助。然後也許只是停留在多戶家庭方面。克里斯，你提到了一點，但當我與投資者談論多戶住宅、租金管制與非租金管制的差異以及西海岸多戶住宅市場的健康狀況時，感覺可能存在一些誤解。您能否簡單地闡述一下您所談論的內容、您所看到的情況以及您從客戶那裡聽到的情況？還有對多戶家庭書籍和這些貸款的信用角度的健康狀況的任何其他評論嗎？

Yes. Thank you for asking the question. I mean, this is something we spend a lot of time on. And I don't want to go as far as to say we're certainly experts on it, but we spent a lot of time and effort and energy really understanding the behavioral economics and the implications of the nuance-based business of multifamily in different regions and markets that we're in.

是的。感謝您提出問題。我的意思是，這是我們花費大量時間的事情。我不想說我們當然是這方面的專家，但我們花費了大量的時間、精力和精力來真正理解行為經濟學以及基於細微差別的多戶家庭業務在不同領域的影響。我們所在的地區和市場。

There's only, I believe, 5 rent-controlled states truly, California being 1 of them. And with such a majority of our multifamily properties in that space, rent control offers the benefits, if you will, of acting as a buffer, both upward and downward in price. It almost gives you a little bit of stability. For a real rudimentary explanation, the income approach to value is really what drives multifamily, particularly workforce multifamily housing, which is the preponderance of our portfolio.

我相信，真正實行租金管制的州只有 5 個，加利福尼亞州就是其中之一。鑑於我們在該領域的大部分多戶住宅，租金管制提供了好處，如果你願意的話，可以作為價格上漲和下跌的緩衝。它幾乎給你一點穩定性。對於真正的基本解釋來說，收入價值法確實是多戶住宅的驅動力，特別是勞動力多戶住宅，這是我們投資組合的優勢。

Because of that driven path, most people are unwilling to move to have to re-rent at a much higher rental rate for a similarly situated property somewhere else. And as a result of the high interest rate market, it's economically unviable for most people who are renting right now to pivot over to homeownership unless they completely leave the state. And because of the slowdown we're seeing both in migration in and out of the state on some level and because of the construction units coming online largely in the Sunbelt region being high-end luxury deliveries, our workforce housing is actually not seeing any impacts whatsoever. As a matter of fact, the numbers remain to be strong. And this is -- I quote it in the data provided by Moody's Analytics, which I found over recently as well as what we're seeing in the portfolio trending now. Does that answer the question, Dave?

由於這條道路，大多數人不願意搬到其他地方以更高的租金重新租用類似位置的房產。由於市場利率高，對於大多數現在租房的人來說，轉向擁有住房在經濟上是不可行的，除非他們完全離開該州。由於我們在某種程度上看到進出該州的移民放緩，而且由於陽光地帶地區的建築單位主要是高端豪華交付，我們的勞動力住房實際上沒有受到任何影響任何。事實上，數字仍然強勁。這是我在穆迪分析提供的數據中引用的，我最近發現了這些數據，以及我們現在在投資組合趨勢中看到的數據。這能回答問題嗎，戴夫？

That's super helpful.

這非常有幫助。

The next question comes from Andrew Terrell with Stephens.

下一個問題來自安德魯·特雷爾和斯蒂芬斯。

Chris, if I could go back to some of the kind of roll-on/roll-off dynamics on the loan portfolio. I guess if I take some of the commentary there in terms of new originations and the rate that's coming on at, call it, low 8% territory and then the payoffs, if those stay around the same level, maybe a bit elevated but are coming off at a, call it, high 3%, low 4% territory. I mean, if you take those 2 together, it implies probably a 15 basis point lift in loan yields per quarter just from like assuming no real changes in the interest rate environment or no more moves from the Fed. I guess as you're looking through the model, does that make sense to you, that like in a static environment, loan yields could go up kind of 10, 15 basis points per quarter just with no Fed changes?

克里斯，我是否可以回到貸款組合的某種滾存/滾存動態。我想如果我就新的起源和正在發生的利率（稱之為低 8% 區域）以及回報（如果這些保持在同一水平附近）進行一些評論，可能會有點高，但即將到來在a 處，稱之為高點3%，低點4% 區域。我的意思是，如果你把這兩者放在一起，這意味著每個季度的貸款收益率可能會上升 15 個基點，就像假設利率環境沒有真正的變化或美聯儲沒有採取更多行動一樣。我想，當您查看模型時，這對您來說有意義嗎？就像在靜態環境中一樣，在美聯儲沒有做出任何調整的情況下，貸款收益率可能每季度上升 10、15 個基點？

I'm sure Scott will want to opine on this. We spent a lot of time looking at that same question. But yes, the short answer is that's about where we pegged it as well and that is actually what we believe will be the plan, which is why we've been very methodical and pragmatic about the paydown and putting new loans on the books. And that's the business strategy. Scott?

我確信斯科特會對此發表意見。我們花了很多時間研究同一個問題。但是，是的，簡短的答案是，這也是我們所確定的，這實際上就是我們相信的計劃，這就是為什麼我們在還款和將新貸款記入賬簿方面一直非常有條理和務實。這就是商業策略。斯科特？

I would agree with that. And I would say if I'm right and there's seasonality where there's a fewer payoffs on the multifamily during the summer months, I believe that will pick up in the fall and winter months. And I think you could see even slightly better improvements month-to-month.

我同意這一點。我想說，如果我是對的，而且由於季節性原因，多戶住宅在夏季的收益會減少，我相信在秋季和冬季，收益會有所增加。我認為您可以看到每個月都有更好的改進。

Okay, got it. And then on the deposit front, do you have what the spot cost of deposit was exiting the second quarter, either interest-bearing or the total?

好，知道了。然後在存款方面，您是否知道第二季度退出時的即期存款成本是多少，無論是帶息還是總成本？

Amy, do you have that?

艾米，你有這個嗎？

Yes. So if you're looking at the spot rate, weighted average rate on the deposits, you're looking at about 3.72% for the quarter.

是的。因此，如果您查看即期利率，即存款的加權平均利率，您會看到該季度的利率約為 3.72%。

Yes. So that was -- the 3.72% weighted average interest-bearing cost for the quarter, do you have that equivalent number at June 30 at the end of the quarter or where it's at to start July?

是的。那麼，本季度的加權平均計息成本為 3.72%，截至 6 月 30 日季度末或 7 月開始時的數字是否相同？

Yes, you're looking at 1.58% and 1.58% for the quarter for June. And that's like NAV's interest -- 1 second, let me see, yes, 3.86%.

是的，您看到的是 6 月份季度的增長率為 1.58% 和 1.58%。這就像 NAV 的利息——1 秒，讓我看看，是的，3.86%。

3.83% (sic) [3.83%] Okay, got it. So I guess with deposits are coming in at 3.86%, but taking your commentary, Scott, around the reduction in borrowings, it feels like the cost of funds could potentially be flattish in the third quarter or maybe even down. And taking that with kind of your -- the loan commentary, I mean, we should see a pretty meaningful lift in the margin heading into third quarter. Is that right?

3.83%（原文如此）[3.83%] 好的，明白了。因此，我猜存款利率將達到 3.86%，但斯科特，根據你對借款減少的評論，感覺第三季度資金成本可能持平，甚至可能下降。結合你的貸款評論，我的意思是，進入第三季度我們應該會看到利潤率出現相當有意義的提升。是對的嗎？

I believe so. Those trends are all heading in the right direction. Yes, that's what I think.

我相信是這樣。這些趨勢都在朝著正確的方向發展。是的，我就是這麼想的。

Okay. And I have 1 more on the operating expense line item. Just weighing together some of the actions you've taken over the past quarter in terms of the headcount reduction, just -- and then also, the customer service costs that were up this quarter, I would assume, might lift a little more into the third quarter. But overall, just where do you see customer service costs heading and then the overall operating expense line item? Do you have a good guide for that into the third quarter?

好的。我還有 1 個關於營業費用項目的信息。只要權衡一下上個季度在裁員方面採取的一些行動，我認為本季度增加的客戶服務成本可能會增加一點第三季度。但總體而言，您認為客戶服務成本和總體運營費用項目將走向何方？您對第三季度有好的指導嗎？

Amy, you want to -- I'll say...

艾米，你想——我會說……

Yes.

是的。

Go ahead and answer that question and then I'll talk about the risks and whatever.

繼續回答這個問題，然後我會談論風險之類的。

Well, because -- well, Scott just mentioned the risk that we were -- we had in the first 2 quarters. We're really looking at projecting kind of annualized benefits in the third quarter. So compensations and benefit, we'll definitely project to slow coming down a little bit in the third quarter and even a little bit more in the fourth quarter. Occupancies and other professional costs is going to be -- remain steady. Customer service costs, we do expect a little bit higher probably just due to the recent Fed increase. So all in all, it probably will net to a very minimal increase in the third quarter.

嗯，因為——嗯，斯科特剛剛提到了我們在前兩個季度面臨的風險。我們確實正在考慮預測第三季度的年化收益。因此，我們肯定會預計第三季度的薪酬和福利會有所放緩，甚至第四季度會有所放緩。佔用率和其他專業成本將保持穩定。客戶服務成本，我們確實預計會稍高一些，可能只是由於美聯儲最近加息。總而言之，第三季度的淨增長可能非常小。

The third risk that we did, Andrew, as recent as these last -- I think it was about 2 weeks ago. So really, we saw no benefit in the second quarter from the third rev. You guys know this, and I'm going to state the obvious, which is it's not something we wanted to do, but it's something that we needed to do in order to navigate our way through this situation. But it should be impactful. We continue to find some programs, IT initiatives, other things that we've backburnered or canceled altogether that don't seem all that meaningful but $40,000 a month or whatever, those start adding up. So we continue to look for any cost saves we can.

安德魯，我們所做的第三個風險，與最後一個風險一樣，我認為是大約兩週前。事實上，我們在第二季度沒有看到第三次轉速帶來的任何好處。你們都知道這一點，我要說的是顯而易見的事情，那就是這不是我們想做的事情，但這是我們需要做的事情，以便度過這種情況。但應該是有影響力的。我們繼續發現一些計劃、IT 計劃以及其他我們已經擱置或完全取消的事情，這些事情看起來並沒有多大意義，但每月 40,000 美元或其他什麼，這些開始加起來。因此，我們將繼續尋求一切可以節省的成本。

Yes, okay. I appreciate the color there. And if I could ask 1 more, Scott, just on the dividend. It does feel like we've hit maybe an inflection point in earnings, taking some of the commentary here together. The dividend is obviously a lot lower today. But just as the earnings profile improves over time, how are you thinking about the dividend rising? Should it be, I guess, get in line with that? Or will it be kind of sporadic? I guess can you help us think about how the dividend should improve from here?

是的，好的。我很欣賞那裡的顏色。斯科特，我能否再問一個關於股息的問題。綜合考慮這裡的一些評論，確實感覺我們已經達到了盈利的拐點。今天的股息顯然低了很多。但隨著盈利狀況隨著時間的推移而改善，您如何看待股息上漲？我想，應該符合這一點嗎？或者會是零星的嗎？我想你能幫助我們思考一下股息應該如何改善嗎？

Yes. Provided that NIM starts increasing, which we believe it's going to, that is trough, as our earnings continue to grow, we will do an analysis of the dividend and make sure that we have the support to increase the dividend. But it is fully within my wanting to bring the dividend back to where it was post this nightmare that I'll call it.

是的。如果淨息差開始增加，我們相信它會增加，那就是低谷，隨著我們的盈利繼續增長，我們將對股息進行分析，並確保我們有增加股息的支持。但我完全希望將股息恢復到這場噩夢之後的水平。

So I think as you know, I guess what I'm saying is, yes, we did the prudent thing by bringing the dividend from $0.11 down to $0.02. But I believe as our revenues start on the way back up, you will see us look to increase the dividend commensurately in alignment with the revenues.

所以我想，正如你所知，我想我想說的是，是的，我們將股息從 0.11 美元降至 0.02 美元，是謹慎的做法。但我相信，隨著我們的收入開始回升，您會看到我們希望根據收入相應地增加股息。

Understood, okay. Congrats on a good quarter.

明白了，好吧。祝賀季度表現良好。

The next question comes from Gary Tenner with D.A. Davidson.

下一個問題來自 D.A. 的加里·坦納 (Gary Tenner)。戴維森。

So lots of questions asked and answered. Just as you talk about, Scott, the further decline in borrowings that you flagged through July 20, is there any shift in kind of the on-balance sheet cash liquidity from that? Or is that really just a function of deposit inflows being used to pay down some borrowings?

所以提出了很多問題並得到了回答。 Scott，正如您所說，您在 7 月 20 日之前指出的借款進一步下降，表內現金流動性是否會因此發生任何變化？或者這真的只是存款流入用於償還部分借款的結果嗎？

It was really -- well, we did bring our on-balance sheet cash from $1.3 billion in the first quarter down to $600 million, $700 million, whatever the number was. It was $790 million or whatever in the second quarter. And of course, that was used to pay down. The deal was we had provided additional collateral to the Federal Reserve Bank and to the Federal Home Loan Bank to get additional borrowings. And to be honest, I think it was important for us in the initial days of those few banks that failed to carry an abundance of on-balance sheet cash.

確實——嗯，我們確實將資產負債表上的現金從第一季度的 13 億美元減少到了 6 億美元、7 億美元，無論數字是多少。第二季度的金額為 7.9 億美元。當然，那是用來償還債務的。協議是我們向聯邦儲備銀行和聯邦住房貸款銀行提供額外的抵押品以獲得額外的借款。說實話，我認為在那些未能持有大量表內現金的銀行成立之初，這對我們來說很重要。

But as we had additional borrowings that we could tap into, which frankly, are quicker than you could sell off securities or anything else, we just didn't -- we felt that as everything stabilized in the marketplace, that we didn't need to be at $1.3 billion on-balance sheet cash. So we brought it back down to a more manageable level, in my mind.

但由於我們有額外的借款可以利用，坦率地說，這比出售證券或其他任何東西都要快，所以我們只是沒有——我們覺得隨著市場上一切穩定下來，我們不需要資產負債表內現金為13 億美元。因此，在我看來，我們將其恢復到了更易於管理的水平。

And by the way, that saves about $700,000 in interest expense that we would otherwise be putting to carry a bunch of on-balance sheet cash that, frankly, we don't think we need. Gary, we'll continue to monitor that. And if it's warranted, we'll either increase or decrease on-balance sheet cash, depending on events that could create either challenges or benefits to us. So we're trying to take a closer eye to say where should on-balance sheet cash be and especially relative to our ability to tap into the Home Loan Bank and the Federal Reserve Bank. But the first quarter, I guess, is what I'm trying to say, I think was prudent at the $1.3 billion. I think where we're at right now is prudent for how I feel like the environment is today.

順便說一句，這節省了大約 70 萬美元的利息費用，否則我們將用這筆利息費用來攜帶大量表內現金，坦率地說，我們認為我們不需要這些現金。加里，我們將繼續關注這一情況。如果有必要，我們將增加或減少資產負債表內的現金，具體取決於可能給我們帶來挑戰或好處的事件。因此，我們試圖更密切地關注資產負債表上的現金應該放在哪裡，特別是相對於我們利用住房貸款銀行和聯邦儲備銀行的能力。但我想，我想說的是，第一季度 13 億美元是謹慎的。我認為我們現在所處的位置對於我對今天的環境的感覺是謹慎的。

I appreciate it. And then in terms of your commentary about probably still some decline in loans from here, if I heard that right, any sense of where loan balances may bottom out? And are you thinking about in terms of kind of a target loan to deposit ratio? How do you kind of think about triangulating around loan balances versus funding?

我很感激。然後，就您關於貸款可能仍會有所下降的評論而言，如果我沒聽錯的話，您是否知道貸款餘額可能會觸底？您是否正在考慮目標貸存比？您如何看待貸款餘額與資金的三角測量？

Sure. No, I don't know that we've set a number that the total loan should be at. As you know, we've cut back on multifamily lending. It's almost nonexistent. I would tell you it is nonexistent. The only thing that we truly are focused on is equipment finance SBA and truly adjustable C&I production, single-family, multifamily, all of which tend to be more fixed rate in nature. Anything else, we're just not really looking to do at this time.

當然。不，我不知道我們已經設定了貸款總額應該達到的數字。如您所知，我們削減了多戶家庭貸款。這幾乎不存在。我會告訴你這是不存在的。我們唯一真正關注的是設備融資 SBA 和真正可調整的工商業生產、單戶住宅、多戶住宅，所有這些本質上都傾向於固定利率。其他的，我們現在並不想做。

So the answer is it's going to continue to shrink. We're hyper-focused on the loans-to-deposit ratio, which is also key. I'm proud of the fact that we brought it down as of July 20 to 93.1%, but I want to continue to bring that number down. Where is that? I don't even know or have an answer to that. But my objective in the near term is 90%, and I wouldn't be surprised if we even strive to get it a little lower than that over a period of time.

所以答案是它將繼續萎縮。我們非常關注貸存比，這也是關鍵。截至 7 月 20 日，我們已將這一數字降低至 93.1%，對此我感到很自豪，但我想繼續降低這個數字。哪裡是？我什至不知道或沒有答案。但我的近期目標是 90%，如果我們努力在一段時間內將其降低一點，我也不會感到驚訝。

Appreciate it. You flagged in your comments the $100 million FHLB term advance, the 5-year advance that saved $120 million. And then you mentioned $200 million more that reduces your cost by about 170 basis points. How long is that fixture?

欣賞它。您在評論中指出 FHLB 學期預付款為 1 億美元，這一 5 年預付款節省了 1.2 億美元。然後您提到額外 2 億美元可以將您的成本降低約 170 個基點。那個固定裝置有多長？

That particular 1 was a different structure and it was a 5-year putable 6 months, so the Home Loan Bank has the right to put it back to us in 6 months. I think now is the perfect time to do it, given the backdrop of the Fed pretty much being done with raising rates if the Street's right on expectations for the Fed rate cycle. That was put on at a 3.62%, I believe, Gary. So it was a 5-year putable 6 months. So it would be putable. I'd like to think of it as a call but putable in January.

那個特定的 1 是一個不同的結構，它是 5 年期，可回售 6 個月，因此住房貸款銀行有權在 6 個月內將其返還給我們。我認為現在是這樣做的最佳時機，因為如果華爾街對美聯儲利率週期的預期正確，那麼美聯儲幾乎已經完成了加息。加里，我相信這個數字是 3.62%。所以這是一份 5 年期可回售 6 個月的債券。所以它是可以放的。我想將其視為看漲期權，但可以在一月份賣出。

Okay, great. And then last question. Obviously, the focus over the last 4 months by investors has been pretty squarely on deposits. But there are questions obviously around asset quality for the industry overall. And as it relates to First Foundation, obviously, your allowance is pretty low on a relative basis of 30 basis points of loans. Even if you assume multifamily is a zero-loss asset, that translates to 60 basis points in the rest of the portfolio. So can you talk a little bit about the allowance as it relates to the non-multifamily portfolio and comfort, what that level you're at?

好的，太好了。然後是最後一個問題。顯然，過去 4 個月投資者的注意力主要集中在存款上。但整個行業的資產質量顯然存在問題。顯然，由於與第一基金會相關，相對於 30 個基點的貸款，您的津貼相當低。即使您假設多戶型資產是零損失資產，這也意味著投資組合的其餘部分有 60 個基點。那麼，您能談談與非多戶家庭投資組合和舒適度相關的津貼嗎？您處於什麼水平？

Yes, it's Chris. Yes, it's a great question and one we spend a lot of time thinking about. Obviously having started the bank with the loss history that we have, we have to rely a lot on the outside data for CECL and stress testing purposes. We run a combination of scenarios with Moody's Analytics being the backdrop for that. And the scenarios are weighted for their baseline and the Fed severe adverse case scenario as well as the potential upside.

是的，是克里斯。是的，這是一個很好的問題，我們花了很多時間思考。顯然，我們在建立銀行時就已經有過損失歷史，因此我們必須在很大程度上依賴外部數據來進行 CECL 和壓力測試。我們以穆迪分析為背景運行了多種情景組合。這些情景根據其基準、美聯儲嚴重不利情況以及潛在的上行空間進行了加權。

Obviously, as you would imagine, we even played it much heavier towards the severe first scenario and taking a more conservative approach, and that's really reflected in the overall number. But we feel really strongly about our portfolio. Look, our credit portfolio has been very conservative for a long period of time. And we never really sacrifice credit quality for rates, which is really the interest rate risk position that led us to where we're at today. Even the C&I lending that we've done has been equally as conservative and strong underwriting characteristics are there.

顯然，正如您所想像的那樣，我們甚至在嚴峻的第一種情況下發揮了更大的作用，並採取了更保守的方法，這確實反映在總數中。但我們對我們的投資組合感覺非常強烈。看，我們的信貸投資組合在很長一段時間內一直非常保守。我們從來沒有真正為了利率而犧牲信貸質量，這實際上是利率風險狀況導致了我們今天的處境。即使是我們所做的商業和商業貸款也同樣具有保守和強大的承保特徵。

Do we expect to see some degradation over time? Possibly, but that's accounted for with the stress test and an equally conservative approach. So we do feel confident that the numbers are more than enough to backstop our position. And we're just not seeing a degradation in the credit cycle yet. We're hopeful that as we continue to grow this business, we're maintaining credit standards at the same degree. And I don't expect there to be a challenge, but over time, you may see that number increase as the C&I base of the model grows.

隨著時間的推移，我們是否期望看到一些退化？有可能，但這是通過壓力測試和同樣保守的方法來解釋的。因此，我們確實有信心這些數字足以支持我們的立場。我們還沒有看到信貸週期惡化。我們希望，隨著我們繼續發展這項業務，我們能夠維持相同程度的信用標準。我預計不會出現挑戰，但隨著時間的推移，您可能會看到這個數字隨著模型的 C&I 基礎的增長而增加。

Well, you will. I want to be clear about that, Gary. As multifamily pays off and we put on more C&I or just we put on more C&I, there is no doubt that our loan loss reserves will increase as a result. And looking across, we've had some [Ps and Ds] that have taken away. There's been some additions. But net-net, there is not a doubt in my mind that as we continue to put on C&I lending, which obviously is going to require more loan loss reserves, you will see that percentage grow. It grew this quarter not a lot, but it grew a little bit this quarter. But you also had a shrinkage of the loan portfolio as well.

好吧，你會的。我想澄清這一點，加里。隨著多戶家庭的回報，我們投入更多的 C&I，或者只是投入更多的 C&I，毫無疑問，我們的貸款損失準備金將會增加。環顧四周，我們有一些[Ps和Ds]被拿走了。有一些補充。但我認為，毫無疑問，隨著我們繼續提供工商業貸款，這顯然需要更多的貸款損失準備金，你會看到這一比例有所增長。這個季度增長不是很多，但是這個季度增長了一點。但貸款組合也有所收縮。

The next question comes from Adam Butler with Piper Sandler.

下一個問題來自亞當·巴特勒和派珀·桑德勒。

If I could just ask a follow-up on the -- on expenses. I know that the customer service deposit line is sourced from earnings credit rates on noninterest-bearing deposits. I was curious if you could answer a few questions surrounding that. What proportion of the noninterest-bearing growth this quarter was tied to those rates? What proportion of current noninterest-bearing are tied to those rates and what they're priced at right now?

如果我能詢問有關費用的後續情況。我知道客戶服務存款額度來自無息存款的收益信用利率。我很好奇你是否能回答一些與此相關的問題。本季度無息增長中有多少比例與這些利率相關？目前的無息貸款中有多少比例與這些利率掛鉤以及它們目前的定價是多少？

Well, the noninterest-bearing deposits only went from 24-point something to 25s. So whatever the increase was, my bet would be that a majority of that would be in that sector that we pay credits to.

好吧，無息存款只從 24 點到 25 點。因此，無論增加多少，我打賭其中大部分將出現在我們支付積分的部門。

Okay. Also I was just curious, if we look at the forward curve and we get about 100 basis points impact next year, could you see some relief in that expense line? I'm not just sure how to model.

好的。我也很好奇，如果我們看一下遠期曲線，明年我們會受到大約 100 個基點的影響，您是否會看到該費用線有所緩解？我不只是確定如何建模。

Sure. I'm trying to tell everybody that when it comes to those types of deposits, when we have Fed rate increases, it is pretty much basis point per basis point. When we have Fed decreases, which a lot of people are starting to point to that, it is also basis point per basis point. So to the extent that the Fed reduces rates, you will see a commensurate drop basis point per basis point that the Fed drops rates, should they do so.

當然。我試圖告訴大家，當涉及到這些類型的存款時，當我們美聯儲加息時，幾乎每個基點都會增加一個基點。當美聯儲降息時，很多人都開始指出這一點，這也是每個基點的一個基點。因此，只要美聯儲降息，您就會看到美聯儲降息的每個基點都會相應下降一個基點（如果他們這樣做的話）。

Okay, great. That's good to hear. And just a housekeeping item. What is a good tax rate to expect going forward?

好的，太好了。聽起來還不錯。而且只是一個家務用品。未來預期的良好稅率是多少？

Amy?

艾米？

You're really looking at an effective tax rate is about 16% annualized. So it really depends on net income before tax how we're going to do it on third quarter and fourth quarter. But as of today, we're projecting effective tax rate of about 14%.

您實際上看到的是年化有效稅率約為 16%。因此，這實際上取決於稅前淨收入我們將如何在第三季度和第四季度做到這一點。但截至今天，我們預計有效稅率約為 14%。

Okay, great. Those are all my questions. Congrats on the good quarter.

好的，太好了。這些都是我的問題。祝賀季度表現良好。

It appears there are no further questions at this time. I will now hand it back over to Scott Kavanaugh for any additional remarks.

目前似乎沒有其他問題了。我現在將把它交還給斯科特·卡瓦諾（Scott Kavanaugh）以徵求任何補充意見。

We continue to work through some of the challenges stemming from the disruption of the financial industry earlier in the year, and we are encouraged by the quick rebound in the market and our business. I'd like to use the analogy that we are a big ship and we are starting to finally turn. We are thankful for the continued support of our stockholders as they continue to believe in our long-term strategy during a pivotal time for the industry, demonstrated by electing all 10 of the company's nominees for the Board of Directors at our 2023 Annual Meeting while rejecting the activist nominee by a substantial margin.

我們繼續應對今年早些時候金融業混亂帶來的一些挑戰，市場和我們業務的快速反彈令我們感到鼓舞。我想用這樣一個比喻：我們是一艘大船，我們終於要開始轉向了。我們感謝股東的持續支持，因為他們在行業的關鍵時期仍然相信我們的長期戰略，這一點在我們的 2023 年年會上選舉了公司所有 10 名董事會提名人，同時拒絕了以大幅優勢當選激進主義提名人。

Going into the back half of the year, we are more focused than ever on growing deposits, remaining selective on loans, identifying efficiencies, reducing expenses and continuing to serve our clients well. We have a strong liquidity position that provides financial flexibility, limited exposure to uninsured deposits and a securities portfolio that allows us to actively manage our interest rate risk and gives us balance sheet flexibility.

進入今年下半年，我們比以往任何時候都更加註重增加存款、保持選擇性貸款、提高效率、減少開支並繼續為客戶提供良好服務。我們擁有強大的流動性頭寸，可提供財務靈活性、有限的未保險存款敞口以及證券投資組合，使我們能夠積極管理利率風險並賦予我們資產負債表靈活性。

We are able to give personalized attention to our clients and that they remain our First Foundation priority. As a regional bank, we remain nimble and able to provide first-class white-glove service to our clients. We are proud of the continued resiliency by our team and the loyalty of our customers and we navigate through this challenging macroeconomic environment. There have been a lot of people that have stood up and gone above and beyond for First Foundation, and I look forward to all that we will accomplish in the second half of 2023 and into 2024.

我們能夠為客戶提供個性化的關注，他們仍然是我們第一基金會的首要任務。作為一家區域銀行，我們保持靈活，能夠為客戶提供一流的白手套服務。我們為我們團隊的持續彈性和客戶的忠誠度感到自豪，我們在這個充滿挑戰的宏觀經濟環境中度過了難關。有很多人為 First Foundation 挺身而出，取得了超越，我期待著我們在 2023 年下半年和 2024 年將完成的一切。

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.

請注意，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。謝謝您，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。