First Foundation Inc (FFWM) 2023 Q4 法說會逐字稿

Greetings, and welcome to the First Foundation's Fourth 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; James Britton, First Foundation's Chief Financial Officer; and Chris Naghibi, Chief Operating Officer.

您好，歡迎參加第一基金會 2023 年第四季財報電話會議。今天的通話正在錄音。今天發言的是第一基金會總裁兼執行長 Scott Kavanaugh； James Britton，第一基金會財務長；克里斯‧納吉比（Chris Naghibi），營運長。

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 statement included in today's earnings release.

在我將電話轉交給史考特之前，請注意，管理階層將在今天的電話會議中做出某些預測性陳述，反映他們目前對公司業績和財務表現的看法和期望。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.

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。

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

現在，我想將電話轉給總裁兼執行長 Scott Kavanaugh。請繼續。

Good morning, and welcome. Thank you for joining us for today's fourth quarter 2023 earnings call. Although the entire banking industry faced substantial headwinds throughout 2023, I am extremely proud of the herculean efforts our entire First Foundation team put forth to work together and make the company stronger. As I look forward into 2024, I am optimistic that the efforts put forth will continue to improve the loan-to-deposit ratio, increase the overall loan yield and improve the sensitivity of the loan portfolio to changing rates.

早上好，歡迎光臨。感謝您參加今天的 2023 年第四季財報電話會議。儘管整個銀行業在 2023 年面臨著巨大的阻力，但我對我們整個 First Foundation 團隊為共同努力使公司變得更加強大而付出的巨大努力感到非常自豪。展望2024年，我樂觀地認為，我們將繼續努力改善貸存比，提高整體貸款收益率，並提高貸款組合對利率變化的敏感度。

Our teams at both the RIA and trust departments were also able to weather a very uncertain outlook in both the stock market and real estate markets. Balance remained strong at both divisions with strong pipelines. The interest rate environment appears to have pivoted with the Fed's fight against inflation nearing its end.

我們 RIA 和信託部門的團隊也能夠經得起股票市場和房地產市場非常不確定的前景。兩個部門的平衡依然強勁，通路強大。隨著聯準會對抗通膨的鬥爭接近尾聲，利率環境似乎已經發生了轉變。

While the rates stay higher for longer or short-end interest rates start to decline, we believe First Foundation is well positioned with our liability-sensitive balance sheet. Most of our fixed-rate loans are short duration and continue to ride the curve down with each passing quarter. We still believe the third quarter was a troughing quarter as we continue to reposition the balance sheet. Multi-family remains particularly strong as an asset class, and it is showing no signs of weakness.

雖然長期利率維持在高水準或短期利率開始下降，但我們相信第一基金會在負債敏感的資產負債表上處於有利地位。我們的固定利率貸款大多是短期貸款，每季都會繼續下降。我們仍然認為第三季度是一個低谷季度，因為我們繼續重新定位資產負債表。多戶家庭作為資產類別仍然特別強勁，而且沒有表現出疲軟的跡象。

As I stated earlier, I am exceptionally proud of the commitment and diligence exhibited by our entire team. From investment management, trust, and banking deposits and lending, our team is dedicated to delivering exemplary results. As we reflect upon the last quarter, we are delighted to report increased AUM of approximately $200 million for the quarter, and First Foundation Advisors improved PPNR quarter-over-quarter, industry low NPA ratios and continued improvements to our capital ratios.

正如我之前所說，我對我們整個團隊所表現出的承諾和勤奮感到非常自豪。從投資管理、信託到銀行存款和貸款，我們的團隊致力於提供典範成果。當我們回顧上一季時，我們很高興地報告本季的資產管理規模增加了約2 億美元，First Foundation Advisors 的PPNR 環比有所改善，NPA 比率處於行業最低水平，並且我們的資本比率持續改善。

For the fourth quarter, we reported net income attributable to common shareholders of $2.5 million, or $0.045 per share for basic and diluted shares. Tangible book value, which is a non-GAAP measure ended the quarter at $16.30, an increase of $0.11 from the $16.19 on September 30, 2023. Pre-tax pre-provision net revenue totaled $0.5 million compared to the negative $400,000 for the third quarter.

第四季度，我們報告歸屬於普通股股東的淨利潤為 250 萬美元，即基本股和稀釋股每股 0.045 美元。有形帳面價值是一種非公認會計準則衡量標準，截至本季末為 16.30 美元，比 2023 年 9 月 30 日的 16.19 美元增加了 0.11 美元。稅前撥備前淨收入總計 50 萬美元，而第三季為負 40 萬美元。

Interest income totaled $146.6 million for the fourth quarter of 2023, compared to the $144.8 million for the prior quarter. Net interest income as a percentage of total revenue was 25% for the quarter compared to the 18% from the prior quarter. Our net interest margin was 1.36% for the quarter as compared to 1.66% as of September 30, 2023. However, non-interest expense decreased to $55.9 million, compared to the $64.2 million in the prior quarter, a decrease of $8.3 million, largely driven by the expected seasonal declines in customer service costs which was discussed at the last earnings call.

2023 年第四季的利息收入總計 1.466 億美元，而上一季為 1.448 億美元。本季淨利息收入佔總收入的百分比為 25%，而上一季為 18%。本季我們的淨利差為 1.36%，截至 2023 年 9 月 30 日為 1.66%。然而，非利息支出下降至 5,590 萬美元，與上一季的 6,420 萬美元相比，減少了 830 萬美元，這主要是由於上次財報電話會議上討論的客戶服務成本預期季節性下降所致。

Our efficiency ratio improved to 98.5% as compared to 99.7% as of September 30, 2023. Our adjusted return on average assets again, a non-GAAP measure, ended the quarter at 0.9%, up from the 0.8% reported as of September 30, 2023. Our loans to deposit ratio remained relatively flat at 95.2% as of December 31, 2023, versus 95.1% as of September 30, 2023, and 103.5% from December 31, 2022.

截至 2023 年 9 月 30 日，我們的效率為 99.7%，提高至 98.5%。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）在本季結束時再次達到 0.9%，高於截至 2023 年 9 月 30 日報告的 0.8%。截至2023年12月31日，我們的貸存比率保持相對平穩，為95.2%，截至2023年9月30日為95.1%，自2022年12月31日起為103.5%。

We remain committed to continuing to improve this ratio through a combination of strategically reducing lower-yielding loan balances and continuing to grow core relationship deposits. Our deposit pipeline remains robust as we look into the new year.

我們仍然致力於透過策略性減少低收益貸款餘額和繼續增加核心關係存款相結合的方式繼續提高這一比率。展望新的一年，我們的存款管道依然強勁。

Related to operational efficiencies during the quarter, we have remained laser-focused on cost-saving initiatives and proactively shrinking our loan balances. As you are aware, we were early in making extremely difficult decisions to reduce our workforce and terminate projects that were slated for completion. These deliberate actions and strategic decisions have been instrumental in controlling expenses and managing their impact on earnings. By diligently managing costs and streamlining our operations, we have been able to optimize our resources and capitalize on the opportunities that support sustainable growth.

與本季的營運效率相關，我們仍然專注於成本節約措施並積極縮減貸款餘額。如您所知，我們很早就做出了極其艱難的決定，以減少勞動力並終止預定完成的專案。這些深思熟慮的行動和策略決策有助於控制開支並管理其對收益的影響。透過努力管理成本和簡化運營，我們能夠優化資源並利用支援永續成長的機會。

Our deposits were at $10.7 billion in the fourth quarter versus third quarter balance of $10.8 billion, an increase from the $10.4 billion as of December 31, 2022. Core non-brokered deposits accounted for 60% of total deposits as of September 31, 2023. Following the seasonal runoff in the MSR deposit portfolio, non-interest-bearing deposits accounted for 14% of total deposits as of December 31, 2023. Our deposit pipeline remains robust, heading into the first quarter of 2024.

我們第四季的存款為 107 億美元，而第三季的餘額為 108 億美元，較截至 2022 年 12 月 31 日的 104 億美元有所增加。截至2023年9月31日，核心非經紀存款佔存款總額的60%。隨著 MSR 存款組合的季節性流失，截至 2023 年 12 月 31 日，無利息存款佔存款總額的 14%。進入 2024 年第一季度，我們的存款管道依然強勁。

Our branch network remains key to the success of our deposit strategy, but we also continue to see strength in our digital banking channel. The platform has continued to serve as an invaluable source of new and ongoing depository relationships, allowing us to expand our client base, both demographically and geographically across the country. With limited branches across the markets we serve, this product allows easy access to our clients in the markets, as well as to digitally forward prospects across the country. We continue to search for more ways to reach new and existing clients through this channel.

我們的分行網路仍然是我們存款策略成功的關鍵，但我們也繼續看到我們的數位銀行管道的優勢。該平台繼續作為新的和持續的存款關係的寶貴來源，使我們能夠在全國範圍內擴大我們的客戶群，無論是在人口上還是在地理上。由於我們所服務的市場中的分支機構有限，該產品可以讓我們輕鬆接觸市場中的客戶，並以數位方式轉發全國範圍內的潛在客戶。我們繼續尋找更多方法透過此管道接觸新客戶和現有客戶。

Our insured and collateralized deposits remained at 87% of total deposits as of December 31, 2023, as compared to 87% as of September 30, 2023. We maintained a strong liquidity position of approximately $4 billion on December 31, 2023. Our liquidity to uninsured and uncollateralized deposits ratio was 3 times. Borrowings were $1.4 billion as of December 31, 2023, compared to $984 million, and $1.2 billion as of September 30, 2023, and December 31, 2022.

截至2023年12月31日，我們的受保和抵押存款仍佔總存款的87%，而截至2023年9月30日，這一比例為87%。截至 2023 年 12 月 31 日，我們維持著約 40 億美元的強勁流動性部位。我們的流動性與無保險和無抵押存款的比率是3倍。截至2023年12月31日，借款為14億美元，而截至2023年9月30日及2022年12月31日，借款為9.84億美元，借款12億美元。

Most of the increase in the quarter was from the Fed's BTFP, a new program established to support bank's liquidity needs at rates more in line with future expectations for Fed funds as opposed to prevailing rates which in today's environment is accretive to earnings. On balance sheet liquidity remained strong at $1.3 billion in cash and cash equivalents, and another $1.5 billion in investment securities at the end of the year. We will continue to look for opportunities to capitalize on market opportunities and position the balance sheet for strength going forward.

本季的成長大部分來自聯準會的 BTFP，這是一項新計劃，旨在以更符合聯邦基金未來預期的利率支持銀行的流動性需求，而不是在當今環境下增加收益的現行利率。資產負債表上的流動性仍然強勁，現金和現金等價物為 13 億美元，年底還有 15 億美元的投資證券。我們將繼續尋找機會利用市場機會並調整資產負債表以增強未來的實力。

Turning to loans, credit quality continues to serve as a crucial differentiator for First Foundation. Our non-performing assets to total assets were 0.15% as of December 31, 2023, as compared to 0.10% for September 30, 2023, and 0.12% as of June 30, 2023. Loan balances continued to decrease to $10.2 billion, a reduction of $100 million during the quarter as compared to $10.3 billion for September 30, 2023. As I stated previously, multifamily remained strong as an asset class and we are not seeing any cracks in the sector. Chris will give a further breakdown of the loan activity during the quarter.

談到貸款，信貸品質仍然是 First Foundation 的關鍵差異化因素。截至2023年12月31日，我們的不良資產佔總資產的比例為0.15%，而2023年9月30日為0.10%，截至2023年6月30日為0.12%。貸款餘額繼續減少至 102 億美元，與 2023 年 9 月 30 日的 103 億美元相比，本季減少了 1 億美元。正如我之前所說，多戶住宅作為一種資產類別仍然強勁，我們沒有看到該行業出現任何裂縫。克里斯將進一步詳細介紹本季的貸款活動。

Looking at our wealth management and trust business, FFA has seen strong performance and secured new client relationships throughout the quarter. The business benefited further as markets slightly increased towards the end of 2023. First Foundation Advisors had $5.2 billion AUM as of December 30, 2023. This was up $200 million from the $5 billion in AUM as of September 30, 2023. The increase was largely due to improvement in the markets. Trust assets under advisement increased during the quarter as well by approximately $100 million to $1.3 billion as compared to the $1.2 billion noted in September 30, 2023.

看看我們的財富管理和信託業務，FFA 在整個季度表現強勁，並建立了新的客戶關係。隨著 2023 年底市場略有成長，該業務進一步受益。截至 2023 年 12 月 30 日，First Foundation Advisors 的資產管理規模為 52 億美元。截至 2023 年 9 月 30 日，AUM 規模為 50 億美元，增加了 2 億美元。這一增長主要是由於市場的改善。本季顧問信託資產也增加了約 1 億美元，達到 13 億美元，而 2023 年 9 月 30 日為 12 億美元。

Margins for our fee-based divisions remained high and our new client prospects are as promising for both the advisory and trust services, as I have seen in some time as we head into 2024. I continue to be surprised that the value of both the advisory and trust departments do not seem to be recognized in the value of First Foundation stock.

正如我在進入 2024 年的一段時間內所看到的那樣，我們收費部門的利潤仍然很高，而且我們的諮詢和信託服務的新客戶前景同樣充滿希望。我仍然感到驚訝的是，諮詢和信託部門的價值似乎並未在第一基金會股票的價值中得到認可。

I will close by reiterating my heartfelt appreciation for the incredible efforts and unwavering dedication of our entire team. It has been an undoubtedly challenging year, but their hard work and commitment have played an instrumental role in our continued success. We recognize that there are factors beyond our influence, including the Federal Reserve's decisions on interest rates; however, we do feel that the sentiment has changed, and pressures will continue to subside. Our commitment to our clients and their financial success has only strengthened over time. We proudly believe that by putting our clients' needs at the forefront, we can successfully navigate the challenges of the market and continue to thrive.

最後，我要重申對我們整個團隊的令人難以置信的努力和堅定不移的奉獻精神表示衷心的感謝。這無疑是充滿挑戰的一年，但他們的辛勤工作和奉獻精神為我們的持續成功發揮了重要作用。我們認識到有些因素是我們無法影響的，包括聯準會的利率決定；然而，我們確實感覺到情緒已經發生變化，壓力將繼續消退。隨著時間的推移，我們對客戶及其財務成功的承諾只會不斷加強。我們自豪地相信，透過將客戶的需求放在首位，我們能夠成功應對市場挑戰並繼續蓬勃發展。

Now, I will turn the call over to Jamie to cover the financials in greater detail. Jamie?

現在，我將把電話轉給傑米，以更詳細地介紹財務狀況。傑米？

Thank you, Scott. I'll start with the balance sheet and our net interest margin. As Scott mentioned, NIM contracted 30 basis points during the quarter from 1.66% in the third to 1.36% in the fourth. There was a slight improvement in our earning asset yield, which increased from 4.56% in Q3 to 4.62% in Q4, and partially offset impacts elsewhere. While loan yields declined modestly 3 basis points and held to maturity portfolios yield was unchanged, the yield on excess cash increased 74 basis points during the quarter and the yield on the available-for-sale portfolio improved 49 basis points.

謝謝你，斯科特。我將從資產負債表和淨利差開始。正如史考特所提到的，NIM 在本季收縮了 30 個基點，從第三季的 1.66% 降至第四季的 1.36%。我們的獲利資產收益率略有改善，從第三季的 4.56% 上升至第四季的 4.62%，部分抵銷了其他方面的影響。儘管貸款收益率小幅下降 3 個基點，持有至到期投資組合收益率保持不變，但本季超額現金收益率上升 74 個基點，可供出售投資組合收益率上升 49 個基點。

Most of the AFS portfolio's increase was due to the full-quarter benefit of securities purchased in the third quarter, shorten dated US treasuries and Ginnie Mae agency mortgage-backed securities.

AFS 投資組合的成長大部分歸因於第三季購買的證券、短期美國國債和吉利美機構抵押貸款支持證券的全季收益。

As I mentioned last quarter, we are open to taking advantage of opportunities to acquire safe, highly liquid securities at attractive yields. To the extent our liquidity objectives are achieved, we will also look for assets that help us achieve our desired long-term interest rate risk profile and mitigate the earnings risk of future short-term rate increases.

正如我上季度提到的，我們願意利用機會以有吸引力的收益率收購安全、高流動性的證券。在實現我們的流動性目標的情況下，我們還將尋找能夠幫助我們實現預期的長期利率風險狀況並減輕未來短期利率上漲的收益風險的資產。

Moving to the right-hand side of the balance sheet, I'll first note the expected seasonal decline in our non-interest-bearing deposit portfolio. As discussed last quarter, customer service costs came down with balances, but the mix back to interest-bearing liabilities, which we secured to replace the runoff weighed on the fourth quarter's net interest margin. The $680 million shift in balances from non-interest-bearing to interest-bearing contributed meaningfully to our quarter-over-quarter decline in NIM. The remainder of NIM's decrease was a result of increased interest-bearing liability costs, which rose 18 basis points this quarter to 4.19%.

轉到資產負債表的右側，我首先要注意我們的無息存款組合的預期季節性下降。如上季所討論的，客戶服務成本隨著餘額的下降而下降，但這種組合又回到了有息負債，我們用這些負債來取代徑流，這對第四季的淨利差造成了壓力。6.8 億美元的餘額從無息轉為有息，對我們的淨利差季度環比下降做出了重大貢獻。淨息差下降的其餘部分是由於計息負債成本增加，本季成本上升 18 個基點至 4.19%。

As a result of actions taken in the third quarter to pull some of our liability sensitivities balance benefits forward using puttable advances with the Federal Home Loan Bank, fourth quarter borrowing costs improved by 9 basis points. Offsetting this net benefit was the quarter-over-quarter increase in interest-bearing deposit costs, which rose from 4% in Q3 to 4.21% in Q4.

由於第三季採取了一些行動，利用聯邦住房貸款銀行的可回售預付款，將我們的一些負債敏感性餘額福利提前，第四季度的借貸成本改善了 9 個基點。計息存款成本環比成長抵消了這一淨收益，從第三季的 4% 上升至第四季的 4.21%。

Factors included the full quarter impact of the July rate increase, client migration to higher rate products such as CDs ahead of a potential decline in short-term market rates, and continued competition in the market for balances driving rate commendations, particularly in the retail channel. While our retail relationships have led to modest cost increases, this quarter the portfolio's cumulative beta all-in costs, the cycle has remained below 50%. We remain pleased with the portfolio's performance and believe it continues to be an important driver of our long-term success.

因素包括 7 月升息對整個季度的影響、客戶在短期市場利率可能下降之前轉向更高利率的產品（例如 CD），以及市場上餘額驅動利率獎勵的持續競爭，特別是在零售通路。雖然我們的零售關係導致成本適度增加，但本季投資組合的累積貝塔總成本週期仍維持在 50% 以下。我們對該投資組合的表現仍然感到滿意，並相信它仍然是我們長期成功的重要推動力。

As we exited the year more optimistic about the rate environment, we saw stabilizing trends in asset yields. The December average yield for loans was 4.70%, equal to the fourth quarter's average, and the yield on the combined securities portfolio, both AFS and HTM was 3.81%, only slightly below the quarterly average of 3.84%.

隨著我們對利率環境更加樂觀地結束這一年，我們看到了資產收益率的穩定趨勢。12月份貸款平均收益率為4.70%，與第四季平均持平，AFS和HTM合併證券投資組合的收益率為3.81%，僅略低於季度平均3.84%。

On the right-hand side of the balance sheet, December's interest-bearing liability rates were slightly higher than quarterly averages as short high-cost deposits were used to meet declines in customer service deposits. As the customer service deposits portfolio's balances rebuild, interest-bearing deposit and liability costs will decline.

在資產負債表右側，12月份的有息負債比率略高於季度平均水平，因為以短期高成本存款來應對客戶服務存款的下降。隨著客戶服務存款組合餘額的重建，計息存款和負債成本將會下降。

After a challenging year, we are pleased with the progress we've achieved on strengthening our balance sheet and concentrations in our loan portfolio continue to right size and we continue enhancing our on-hand liquidity, improving our capital. As I've noted before, we will continue to monitor the rate environment for opportunities to pivot towards a more sustainable long-term interest rate risk profile and mitigate the earnings risk of future short-term rate increases. And I look forward to the progress we're making in 2024.

經過充滿挑戰的一年後，我們對在加強資產負債表和貸款組合集中度方面取得的進展感到高興，我們繼續增強現有流動性，改善我們的資本。正如我之前指出的，我們將繼續監控利率環境，尋找轉向更永續的長期利率風險狀況並減輕未來短期利率上漲的收益風險的機會。我期待 2024 年我們的進展。

Moving to the income statement and net interest income, though we saw average earning assets remained stable for the quarter, the 30 basis point decline in net interest margin drove $9.6 million decrease in net interest income. A portion of the decline in net interest income, as Scott mentioned, $8.3 million was offset by the decline in customer service costs, and we would expect this dynamic to play out in reverse as customer service deposit balances begin to return in the first part of 2024. Unlike the higher-than-quarterly average funding rates noted for December, the opposite was true for customer service costs. December expense was approximately $3 million as compared to the quarter's monthly average of $5.5 million.

轉向損益表和淨利息收入，儘管我們看到本季平均獲利資產保持穩定，但淨利差下降 30 個基點導致淨利息收入減少 960 萬美元。正如史考特所提到的，淨利息收入下降的一部分，即830 萬美元，被客戶服務成本的下降所抵消，我們預計，隨著客戶服務存款餘額在今年上半年開始回升，這種動態將出現逆轉。2024 年。與 12 月高於季度平均資金費率不同，客戶服務成本的情況恰恰相反。12 月份的費用約為 300 萬美元，而該季度的月平均費用為 550 萬美元。

While interest on loans declined $4.2 million from $124.4 million in Q3 to $120.2 million in Q4, income on securities and other liquid assets increased by a combined $6 million to $26.4 million. The shift in balances out of non-interest-bearing deposits drove both higher average rates and higher average volumes in interest-bearing liabilities, which together increased interest expense by $11.4 million.

雖然貸款利息從第三季的 1.244 億美元下降到第四季的 1.202 億美元，下降了 420 萬美元，但證券和其他流動資產的收入總計增加了 600 萬美元，達到 2,640 萬美元。無息存款餘額的轉移導致平均利率上升，帶息負債平均數量增加，利息支出總共增加了 1,140 萬美元。

Again, as customer service deposits began their seasonal rebuild, higher costs wholesale balances will decline with the net effect being higher customer service expense and lower interest-bearing deposit costs.

同樣，隨著客戶服務存款開始季節性重建，較高的成本批發餘額將下降，其淨效應是客戶服務費用增加和計息存款成本降低。

Wealth and trust-related fees declined slightly for the quarter from $8.8 million in Q3 to $8.6 million this quarter. We saw a decline in quarterly average AUM, but as Scott mentioned, AUM increased point-to-point, ending the quarter approximately $200 million higher than on September 30.

本季財富和信託相關費用略有下降，從第三季的 880 萬美元降至本季的 860 萬美元。我們看到季度平均 AUM 有所下降，但正如 Scott 提到的，AUM 逐點增加，季度結束時比 9 月 30 日高出約 2 億美元。

We are excited to enter 2024 with momentum in these businesses and continue growing in such an exciting time for the industry. As you know, the high-growth Texas and Florida markets represent a significant opportunity for us, and we look forward to engaging with our clients and prospects there.

我們很高興進入 2024 年，這些業務勢頭強勁，並在行業如此激動人心的時刻繼續發展。如您所知，高速成長的德克薩斯州和佛羅裡達州市場對我們來說是一個重大機遇，我們期待與那裡的客戶和潛在客戶合作。

Customer service costs aside, other non-interest expense categories totaled $39.5 million for the quarter, in line with $39.5 million reported a quarter ago. We expect compensation and benefits to increase slightly entering the first part of '24 as a result of annual adjustments and tax resets, but we recognize the need to remain diligent on expense growth and continue benefiting from the very difficult decisions made in 2023.

除客戶服務成本外，本季其他非利息費用類別總計 3,950 萬美元，與上一季報告的 3,950 萬美元一致。我們預計，由於年度調整和稅收重設，薪資和福利將在 24 世紀上半年略有增加，但我們認識到需要繼續努力控制費用增長，並繼續從 2023 年做出的非常困難的決定中受益。

As Scott mentioned several times, we remain laser-focused on improving operational efficiency and controlling our discretionary costs. This is imperative as we work to reestablish operating leverage and long-term steady growth in net interest income. Our expense-to-assets ratio, excluding customer service costs compares very favorably to peers and we do not intend to relinquish that advantage.

正如史考特多次提到的，我們仍然專注於提高營運效率和控制可自由支配成本。在我們努力重建營運槓桿和淨利息收入長期穩定成長的過程中，這一點勢在必行。我們的費用資產比（不包括客戶服務成本）與同業相比非常有利，我們不打算放棄這項優勢。

Continuing down the income statement, the income tax provision was a benefit to net income again this quarter, increasing from a $600,000 benefit in Q3 to $2.3 million benefit this quarter. The main driver for the additional benefit was a decrease in our state blended tax rate, which is a result of our expanding into Florida and Texas. The non-taxable goodwill impairment made for a noisy 2023, but as profitability normalizes, we expect an effective tax rate around 28%.

繼續看損益表，所得稅撥備再次為本季淨利帶來好處，從第三季的 60 萬美元增加到本季的 230 萬美元。額外福利的主要驅動力是我們州混合稅率的降低，這是我們擴展到佛羅裡達州和德克薩斯州的結果。免稅商譽減損導致 2023 年的情況一片混亂，但隨著獲利能力正常化，我們預計有效稅率約為 28%。

Moving finally to capital and liquidity, we expect another significant improvement in First Foundation, Inc.'s total risk-based capital ratio, which we estimate will be 12.27%, or 38 basis points higher than Q3 and 98 basis points higher than its Q4 2022 level. This type of improvement is noteworthy and positions us well for growth once the uncertainty around the economic environment subsides. Our tangible common equity to tangible asset ratio declined slightly to 6.91% due to this quarter's larger ending balance sheet, which was primarily due to additional risk liquidity.

最後談到資本和流動性，我們預計First Foundation, Inc. 的總風險資本比率將再次顯著改善，我們估計該比率將為12.27%，比第三季度高38 個基點，比第四季度高98個基點2022年水準。這種類型的改善值得注意，一旦經濟環境的不確定性消退，就會為我們的成長奠定良好的基礎。由於本季期末資產負債表規模較大，我們的有形普通股與有形資產比率小幅下降至 6.91%，主要是由於風險流動性增加。

As I noted last quarter, however, we believe our capital position provides a relatively strong risk capital balance versus peers when considering first, our held-to-maturity portfolios, favorable after-tax unrealized loss position of $56.3 million, or only 6.2% of tangible equity, which is down from $75.2 million, or 8.2% tangible equity last quarter, and second, our strengthening liquidity position and relatively continued low levels of uninsured and uncollateralized deposits, which as a reminder are those that proved to be the most vulnerable during times of significant stress.

然而，正如我上季度指出的那樣，我們認為，在首先考慮我們的持有至到期投資組合時，我們的資本狀況與同行相比具有相對較強的風險資本平衡，有利的稅後未實現損失部位為5,630 萬美元，僅佔6.2%有形資產，比上季度的7,520 萬美元或8.2% 有形資產下降；其次，我們的流動性狀況不斷增強，無保險和無抵押存款水準相對持續較低，提醒人們，這些存款被證明是承受巨大壓力的時候。

As noted, our uninsured and uncollateralized deposits stand at only 12.6% of total deposits. As I mentioned before, we are pleased with the stability we've achieved in our liquidity position, and we're comfortable with the level of on-balance sheet liquidity we are holding today, and confident in our total available liquidity of 3x, uninsured and uncollateralized deposits is more than sufficient to mitigate risks should market volatility return.

如前所述，我們的無保險和無抵押存款僅佔總存款的 12.6%。正如我之前提到的，我們對流動性頭寸實現的穩定性感到滿意，我們對今天持有的表內流動性水平感到滿意，並對我們的可用流動性總額達到 3 倍（無保險）充滿信心如果市場波動再次出現，無抵押存款足以緩解風險。

I echo Scott's comments on what great work the team did for First Foundation last year and next year's conviction that we're positioned for success moving forward. With that, I'll now turn it over to Chris to provide additional detail on our asset quality, loan portfolio, and deposit operations. Chris?

我贊同史考特的評論，去年團隊為第一基金會所做的出色工作，以及明年我們堅信我們將取得成功。現在，我將把它交給克里斯，以提供有關我們的資產品質、貸款組合和存款業務的更多詳細資訊。克里斯？

Thank you, Jamie. Good morning. I will be talking to you today and elaborating on our lending, our deposits, our strategic direction, and about the strength of our assets.

謝謝你，傑米。早安.我今天將與您交談，詳細介紹我們的貸款、我們的存款、我們的策略方向以及我們的資產實力。

Coming out of a tumultuous 2023, we had a sharp focus on remediating our fixed-rate lending portfolio's position as interest rates started to rise. As you heard our goal since that time has been to continue to reduce that exposure and diversify into index plus margin-based pricing, focused on conservatively underwritten C&I lending where we prioritize relationships. As we do this, you can anticipate an increase in our CECL reserves as a byproduct of the asset class and the historical data which supports it. We believe this will be a strong step in positioning the company in line with the risk profile of peers.

在經歷了動盪的 2023 年之後，隨著利率開始上升，我們專注於修復固定利率貸款投資組合的狀況。正如您所聽到的，我們自那時以來的目標一直是繼續減少風險敞口並實現指數加保證金定價多元化，重點關注保守承銷的工商業貸款，我們優先考慮關係。當我們這樣做時，您可以預期我們的 CECL 儲備會增加，作為資產類別和支持它的歷史資料的副產品。我們相信，這將是公司定位與同業風險狀況一致的重要一步。

All of our teams have worked together to manage the strategic direction of our diverse and strong loan portfolio, which as of December 31, 2023, remains composed of 51% multifamily loans, down from its height of approximately 54% as of Q3 of 2022, 32% commercial business loans, including owner-occupied commercial real estate and equipment finance, compared to approximately 28% as of Q4 of 2022, 9% consumer and single-family residential loans, 6% non-owner occupied commercial real estate, and approximately 2% of land and construction loans. What is not clear in the data when compared quarter-over-quarter, but it's worthy of note is there has been a deceleration in the shrinking of the bank's loan portfolio which started the year at approximately $10.7 billion, and is now down to $10.2 billion as of Q4 of 2023, even after seeing a decline of $300 million in the third quarter.

我們所有團隊共同努力管理我們多元化且強大的貸款組合的策略方向，截至 2023 年 12 月 31 日，多戶貸款仍佔 51%，低於 2022 年第三季約 54% 的最高水平，商業企業貸款佔32%，包括業主自用商業房地產和設備融資，而截至2022 年第四季約為28%；消費者和單戶住宅​​貸款佔9%；非業主自用商業房地產貸款佔6%；土地和建築貸款的2%。與季度相比，數據中尚不清楚，但值得注意的是，銀行貸款組合的收縮速度有所放緩，年初的貸款組合約為 107 億美元，目前已降至 102 億美元截至2023 年第四季度，儘管第三季下降了3 億美元。

From an operational perspective, we continue to challenge our lending departments and adapt to a heavy focus on asset quality review. If there are cracks coming in the economy, we want to spot them proactively. Obviously, we continue to maintain our steadfast cautious yet proactive approach to growing with strong asset quality.

從營運角度來看，我們繼續對貸款部門提出挑戰，並適應對資產品質審查的高度重視。如果經濟出現裂縫，我們希望主動發現它們。顯然，我們繼續保持堅定的謹慎而積極的態度，以強勁的資產品質實現成長。

Loan fundings continue to be comprised of primarily high-quality adjustable rate, C&I, SBA and mortgage lending, totaling $339 million for the fourth quarter, offset by loan paydowns and payoffs of $444 million in the quarter.

貸款資金繼續主要由高品質的可調整利率、C&I、SBA 和抵押貸款組成，第四季度總額為 3.39 億美元，被本季 4.44 億美元的貸款償還和還款所抵消。

As previously noted, our goal continues to be to drive down our commercial real estate exposure, and have a greater balance between fixed and variable-rate lending. As a reminder, over the near term, we are taking a cautious protectionary lending approach with our existing multifamily portfolio, and as a result of the fixed rate portion of the portfolio it will comprise a smaller and smaller percentage of the whole.

如前所述，我們的目標仍然是降低商業房地產風險，並在固定利率和浮動利率貸款之間取得更大的平衡。提醒一下，短期內，我們對現有的多戶投資組合採取謹慎的保護性貸款方法，由於投資組合的固定利率部分，它將在整體中所佔的比例越來越小。

From a historical perspective, we held approximately $5 billion in loans as of fiscal year-end 2020. By fiscal year-end 2021, we had grown to over $7 billion in loans before peaking at over $10 billion in loans by fiscal year-end of 2022. Given the relatively short duration of the multifamily asset class and the cash flow focus of most investors, we anticipate a future benefit of anticipated repricing activity on a long-term basis we need to be and will be more diversified overall on all of our underlying assets. As I indicated earlier, this will gradually increase the bank's CECL reserves as a more balanced portfolio will have a naturally increasing reserve.

從歷史角度來看，截至 2020 財年末，我們持有約 50 億美元的貸款。到 2021 財年末，我們的貸款額已增至超過 70 億美元，並於 2022 財年末達到超過 100 億美元的貸款高峰。鑑於多戶資產類別的持續時間相對較短以及大多數投資者對現金流的關注，我們預計長期的預期重新定價活動將帶來未來的好處，我們需要並將在所有基礎資產上實現整體更加多元化。正如我之前指出的，這將逐漸增加銀行的 CECL 準備金，因為更平衡的投資組合將自然增加準備金。

With the full year of 2023 behind us, let's take a moment to reflect on the breakdown of loans that we've originated throughout this past year. Percentages are as follows: commercial business loans, 90%; multifamily, 2%; single family, 2%; and other miscellaneous loans at 6%. It is always worthwhile to reiterate that the commercial business portfolio is diversified with no sector comprising more than a third of the portfolio, and only 12% of the portfolio exposed to commercial real estate.

2023 年一整年已經過去，讓我們花點時間回顧一下過去一年我們發放的貸款明細。百分比如下： 商業企業貸款，90%；多戶型，2%；單身家庭，2%；和其他雜項貸款的利率為6%。值得重申的是，商業業務投資組合是多元化的，沒有一個行業佔投資組合的比例超過三分之一，並且只有 12% 的投資組合涉及商業房地產。

Despite regional pressures and rhetoric around certain geographical challenges in multifamily housing, we remain confident in the asset class, particularly our unique workforce housing exposure within the broadly defined sector. On previous calls, you have heard our team speak to the value of workforce housing in the face of record-low housing affordability. According to CoStar, the multifamily market has seen three consecutive quarters of solid demand, a dramatic recovery from 2022. Supply is still outpacing demand resulting in a deceleration of rent growth nationally. Ironically, the market that appear to be the most unstable are the Midwest and the Northeast markets, which are showing resilience with marginal declines in rent growth, while sunbelt markets are experiencing significant slowing.

儘管圍繞多戶住房的某些地理挑戰存在區域壓力和言論，我們仍然對該資產類別充滿信心，特別是我們在廣泛定義的行業中獨特的勞動力住房敞口。在先前的電話會議中，您已經聽到我們的團隊談到了在住房負擔能力創歷史新低的情況下勞動力住房的價值。CoStar 表示，多戶住宅市場已連續三個季度出現強勁需求，自 2022 年以來大幅復甦。供應仍超過需求，導致全國租金成長放緩。諷刺的是，似乎最不穩定的市場是中西部和東北部市場，它們表現出彈性，租金成長略有下降，而陽光地帶市場則出現顯著放緩。

As a reminder, California is a rent-controlled state and is where approximately 87% of our multifamily loans are located. The bank has limited exposure to the Sunbelt region, the Midwest, and the Northeast markets. While national vacancy rates are rising by over 200 basis points from a record low of 4.8% in Q3 of 2021 to 7.3% in Q3 of 2023, the bank's portfolio does not show signs of deterioration or vacancy rates rising over our existing and legacy underwriting standards. This is likely due to the nature of workforce housing, rent-controlled versus predominantly found in the market in the aforementioned regions, and newly built properties, which typically only have downside risk, particularly high-end luxury apartment units.

提醒一下，加州是一個租金管制州，我們約 87% 的多戶型貸款都位於該州。該銀行對陽光地帶、中西部和東北部市場的投資有限。儘管全國空置率從2021 年第三季的歷史低點4.8% 上升至2023 年第三季的7.3%，上升了200 個基點以上，但該銀行的投資組合併沒有出現惡化或空置率上升超過我們現有和傳統承保標準的跡象。這可能是由於勞動力住房的性質、租金管制與上述地區市場上主要存在的住房以及新建房產（通常只有下行風險，尤其是高端豪華公寓單位）有關。

Looking at our entire portfolio, its strength is evident in both its continued credit quality metrics and the low NPAs to asset ratio for the fourth quarter of 15 basis points, compared to 10 basis points from the prior quarter and 13 basis points from year-end of 2022. While NPAs have ticked up slightly, I want to be clear that this stems from two loans specifically, neither were multifamily and both were acquired as part of M&A activity and not originated by FFB organically.

縱觀我們的整個投資組合，其實力在其持續的信貸品質指標和第四季度不良資產與資產比率低至 15 個基點方面顯而易見，而上一季度為 10 個基點，較年底為 13 個基點2022年。雖然不良資產略有增加，但我想明確的是，這具體源於兩筆貸款，兩者都不是多戶型貸款，而且兩者都是作為併購活動的一部分獲得的，而不是由FFB 有機發起的。

Further, one is the factoring credit and that business line was completely shut down as part of the underlying acquisition as it did not fit the credit profile of First Foundation Bank. The second loan is properly margining piece of collateral with no anticipated risk of loss. Our underwriting remains largely unchanged and staunchly conservative with weighted average LTVs of 55% for multifamily loans and 54% for single-family loans.

此外，其中一個是保理信貸，該業務線作為基礎收購的一部分完全關閉，因為它不符合第一基礎銀行的信用狀況。第二筆貸款是適當保證金的抵押品，沒有預期的損失風險。我們的核保基本上保持不變，而且非常保守，多戶貸款的加權平均 LTV 為 55%，單戶貸款的加權平均 LTV 為 54%。

Moving on to deposit operations, the bank continues to focus on deeper relationships with our clients, which we believe that when combined with our value proposition of service distinguishes us in the marketplace. While we still are keeping a close eye on liquidity and the funding in the near term, we have begun to refocus our core funding growth efforts. Continued improvement in funding post-contagion period will allow us to allocate more attention to driving down any overdependence on broker deposits and home loan bank advances. The breakdown of our current deposits is as follows: money market and savings, 30%; certificates of deposit, 29%; interest bearing demand deposits, 27%; and non-interest-bearing demand deposits, 14%. Our core deposits are diversified geographically with California accounting for 36% of total deposits, Florida at 36%, and Texas at 10%. Outside of this majority, Nevada, Hawaii, and other states make up the remaining 18% of the total.

在存款業務方面，該銀行繼續專注於與客戶建立更深入的關係，我們相信，當與我們的服務價值主張相結合時，我們就能在市場上脫穎而出。雖然我們仍密切關注短期內的流動性和融資情況，但我們已開始重新關注我們的核心融資成長工作。疫情後融資的持續改善將使我們能夠更加關注降低對經紀人存款和房屋貸款銀行預付款的過度依賴。我們的活期存款組成如下：貨幣市場和儲蓄，30%；存款證，29%；計息活期存款，27%；和無息活期存款，14%。我們的核心存款在地理上多元化，加州佔總存款的 36%，佛羅裡達州佔 36%，德州佔 10%。除了這大部分之外，內華達州、夏威夷州和其他州佔了剩餘的 18%。

We continue to be pleased with the growth of our digital branches' online account opening infrastructure and technology. The seamless instant account opening and funding with real-time risk mitigation and fraud detection is already prepared for deployment into our physical branches. It will initially be utilized for consumer accounts so that we free up more time to focus on the high-touch needs of our business clients and the complexities of their banking relationship.

我們對數位分支機構線上開戶基礎設施和技術的發展持續感到滿意。具有即時風險緩解和詐欺偵測功能的無縫即時開戶和融資功能已準備好部署到我們的實體分公司。它最初將用於消費者帳戶，以便我們可以騰出更多時間專注於商業客戶的高接觸需求及其銀行關係的複雜性。

As we noted last quarter, we have begun to change the culture of our physical branches to empower and incentivize employees to aggressively grow our granular core retail deposit franchise. They have risen to the challenge of being the frontline and the backbone of our institution because the growth of our retail channel is integral to our resilience and continued success.

正如我們上季度指出的那樣，我們已經開始改變實體分支機構的文化，以授權和激勵員工積極發展我們的細粒度核心零售存款特許經營權。他們勇敢地面對挑戰，成為我們機構的前線和支柱，因為我們零售通路的成長是我們的韌性和持續成功不可或缺的一部分。

We continue to look at our current technology stack to see where we can both increase efficiency and remove redundancy. Refresh policies and procedures continued to improve operations as well. From a timing perspective, we have begun preparing for a changing landscape ahead of a potential rate cut during the 2024 calendar year by strategically deprioritizing marketing based on rate and instead highlighting relationships, community, and service.

我們繼續審視目前的技術堆疊，看看在哪裡可以提高效率並消除冗餘。更新政策和程序也持續改善營運。從時間角度來看，我們已經開始為 2024 年可能降息之前的情況變化做好準備，策略性地取消基於利率的營銷優先級，轉而強調關係、社區和服務。

A lot is changing about the way we do business, and I would like to thank every single contributor at First Foundation for their support and commitment to improving what we do. If we learn nothing else from 2023, it is that we are resilient and we are grateful for a family of team members who rose to the challenge of a very tumultuous year for the economy.

我們的業務方式正在發生很大變化，我要感謝第一基金會的每一位貢獻者對改善我們工作的支持和承諾。如果說我們從 2023 年沒有學到什麼，那就是我們的韌性，我們感謝我們的團隊成員在經濟非常動蕩的一年中勇敢地面對挑戰。

I will now hand the call back to the operator for questions.

我現在將把電話轉給接線員詢問問題。

(Operator Instructions) David Feaster, Raymond James.

（操作員說明）David Feaster，Raymond James。

Hi. Good morning, everybody.

你好。大家早安。

Hi. David.

你好。大衛。

Good morning.

早安.

Good morning.

早安.

Maybe just starting high level, the Fed is clearly at least seemingly likely to pause near term and then there is an increased likelihood of potential cuts. I was just hoping you could help us think about the margin in earnings trajectory assuming a Fed pause, and maybe how that could be accelerated with potential cuts. And just thinking about the impact of potential cuts on your financials, I know you talked about bringing a bit of a liability sensitivity forward. But just kind of any thoughts on how quickly you'll be able to reprice funding costs lower while earning assets continue to reprice higher.

也許剛開始高水平，聯準會顯然至少有可能在短期內暫停，然後潛在降息的可能性就會增加。我只是希望你能幫助我們思考假設聯準會暫停的獲利軌跡的幅度，以及如何透過潛在的降息來加速這一點。只要考慮一下潛在的削減對您的財務狀況的影響，我知道您談到要提前一些責任敏感性。但是，只要有關於您能夠以多快的速度將融資成本重新定價為更低，同時盈利資產繼續重新定價為更高的任何想法。

Well, given the fact that we've stated in no uncertain terms that we're liability sensitive. It would obviously, fuel our earnings if the Fed were to cut rates. I think I've stated previously, there is probably I would say upwards towards $3 billion of liabilities that would reprice immediately if the Fed were to cut rates which would be a substantial savings, and frankly ignite earnings back to where they once were. If that does not happen and it's a higher for longer scenario, which I don't think it will for various and sundry reasons, then it'll be an upward trend towards seeing everything improve, but obviously, it won't be at the same pace as if the Fed were to start cutting rates. Does that make sense?

好吧，考慮到我們已經明確表示我們對責任敏感。如果聯準會降息，顯然會刺激我們的獲利。我想我之前已經說過，如果聯準會降息，我可能會說，大約 30 億美元的負債將立即重新定價，這將是一筆可觀的節省，並坦率地將盈利拉回原來的水平。如果這種情況沒有發生，並且在較長的情況下會更高，我認為出於各種原因，這將是一個上升趨勢，看到一切都在改善，但顯然，它不會是在與美聯儲開始降息的速度相同。那有意義嗎？

Yes. No, for sure. Okay, that's helpful. And then maybe digging a bit deeper onto the loan growth side. Obviously, production has slowed, especially in multifamily, but you know a lot of multifamily lenders in the market have pulled back as well, and there's clearly still demand for that product. I'm curious, maybe how do you think about more broadly the trajectory of loan balances or maybe even the pace of declines? Where you're seeing good opportunities today? And maybe are you actually starting to see opportunities on the multifamily side that makes some sense, or is growth primarily going to still be C&I?

是的。不，當然。好的，這很有幫助。然後也許可以更深入地研究貸款成長方面。顯然，生產已經放緩，特別是在多戶住宅中，但你知道市場上許多多戶住宅貸款機構也已經退出，而且對該產品的需求顯然仍然存在。我很好奇，也許您如何更廣泛地考慮貸款餘額的軌跡，甚至可能是下降的速度？今天在哪裡看到了好機會？也許您真的開始看到多戶住宅方面的機會，這是有意義的，或者成長主要仍然是商業和工業？

Well, I think initially our hope was to continue to do a preponderance of C&I. And when I say that, when you look at last year's C&I grew 90%. It was 90% of our originations, and it probably won't be terribly far from that. But I will tell you, we're not seeing where balances can grow tremendously off the C&I. To be honest, again we've all been about credit and so we're just not going to participate in a market that we don't believe that the credit is fully where First Foundation should be.

嗯，我認為最初我們的希望是繼續在 C&I 方面佔據優勢。當我這麼說時，你看看去年的 C&I 成長了 90%。這是我們 90% 的起源，而且可能離這個也不會太遠。但我會告訴你，我們並沒有看到 C&I 的餘額可以大幅增加。說實話，我們一直都在關注信貸，所以我們不會參與一個我們不相信信貸完全屬於 First Foundation 的市場。

So that being said, we believe C&I can continue to grow, but it's going to be much more modest than relative to the current balance that we have on C&I. Multifamily, yes, there are opportunities there, I would say, the rates right now in that sector. Now, say that there is a lot of people that have pulled back. Historically, First Foundation was big in California, obviously, JPMorgan the largest. You had Luther Burbank who was selling to WaFd. You've got HomeStreet that now has just entered into an agreement.

話雖這麼說，我們相信 C&I 可以繼續成長，但相對於我們目前 C&I 的平衡而言，成長幅度將會小得多。多戶家庭，是的，那裡有機會，我想說，目前該領域的利率。現在，說有很多人退縮了。從歷史上看，第一基金會在加州規模很大，顯然摩根大通是最大的。Luther Burbank 正在向 WaFd 出售產品。HomeStreet 現在剛剛簽署了一份協議。

So, yes, a lot of players have maybe slowed down, Chase is not. Chase from what we're seeing in the marketplace is still very active. Rates tend to be in the 6% and high 6% -- 6.75%, 6% and 7%, 8%. I think JPMorgan made the price a little bit more aggressively than that. And we might dabble a little bit in that arena, but not to a large enough extent to stop ourselves from the path of getting ourselves back to a more neutral stance on a longer-term basis.

所以，是的，很多球員可能已經放慢了腳步，但蔡斯卻沒有。從我們在市場上看到的情況來看，追逐仍然非常活躍。利率往往在 6% 和高 6%——6.75%、6% 和 7%、8%。我認為摩根大通的定價比這更激進一些。我們可能會在這個領域稍微涉足一下，但程度還不足以阻止我們回到更長期的中立立場。

Okay. That's extremely helpful. Would you expect maybe loan balances to stabilize, or maybe can continue to see declines in the near-term?

好的。這非常有幫助。您是否預計貸款餘額可能會穩定，或者可能會在短期內繼續下降？

No, I think they're going to stabilize. And I think it's really imperative since we're talking about loans. We put on too many fixed-rate loans in 2022, and everybody knows that. But most of that was put on in the first and second and third quarter of 2022. That's just around the corner from being a full two years of seasoning just on that product. And Jamie was talking to me the other day, and we were talking about, I think we've got $1.5 billion or so multifamily repricing. That's a year and a half of what is really not that far away from a lot of the stuff repricing. So, when we tell you it's short duration, it's really more short duration than I think the Street seems to be thinking that it is. So, I just think that's -- I don't know. It's something I think is important to note.

不，我認為他們會穩定下來。我認為這是非常必要的，因為我們正在談論貸款。2022 年我們發放了太多固定利率貸款，這大家都知道。但其中大部分是在 2022 年第一季、第二季和第三季投放的。僅僅在該產品上進行整整兩年的調味就指日可待了。有一天，傑米和我談話，我們談論的是，我認為我們已經完成了大約 15 億美元的多戶住宅重新定價。這距離很多東西重新定價並不遙遠。因此，當我們告訴你它的持續時間很短時，它的持續時間實際上比我認為華爾街所認為的要短。所以，我只是認為──我不知道。我認為這是值得注意的重要事情。

And Scott, let me add some more color -- sorry, David.

史考特，讓我添加一些更多的色彩——對不起，大衛。

Go ahead.

前進。

Yes. Let me add more color. There's also other impetus and motivation for the traditionally cash flow focused investor in multifamily to refinance the loan that the market doesn't always consider. Given in mind they have their fixed portion, they also have their prepay periods. But a lot of times when they convert from interest only to principal and interest, they are very highly motivated to refinance that debt back into an IO product. So, you'll see a lot more activity I think the market expects because of their cash flow focus.

是的。讓我添加更多顏色。對於傳統上註重現金流的多戶型投資者來說，還有其他動力和動機為市場不總是考慮的貸款進行再融資。考慮到他們有自己的固定部分，他們也有自己的預付款期。但很多時候，當他們從只付利息轉換為本金加利息時，他們非常有動力將該債務再融資回IO產品。因此，我認為市場預期由於他們對現金流的關注，你會看到更多的活動。

That's a really good point, and maybe just last one for me. You alluded to it a bit, Chris, but touching on the branch deposit growth initiatives that you guys have been working on, it sounds like you've had some success. I'm just curious where we stand there. Could you maybe quantify how that's going so far, and thinking about the opportunities from that as we look forward, and just other core deposit growth initiatives?

這是一個非常好的觀點，也許對我來說只是最後一個觀點。克里斯，你稍微提到了這一點，但是談到你們一直在致力於的分行存款成長計劃，聽起來你們已經取得了一些成功。我只是好奇我們站在哪裡。您能否量化目前的進展情況，並思考我們未來的機會以及其他核心存款成長計畫？

Yes. So, one of the things I think we all can attest to is that during the contagion period, we spent some time focusing on what the behaviors were of our customers and our clients, and coming out of it we took it as an educational experience. So, we knew that our clients really believed in the relationship of the institution and wanted to grow with us.

是的。因此，我認為我們都可以證明的一件事是，在傳染期間，我們花了一些時間關注我們的顧客和客戶的行為，並從中得出結論，我們將其視為一種教育經驗。因此，我們知道我們的客戶確實相信該機構的關係，並希望與我們一起成長。

So some of the things we're doing, I don't know how detailed you want the answer here. We're certainly taking treasury management services and diving into the community and smaller business as opposed to larger community businesses. We're looking at more of a culture, I wouldn't say driven on sales, but certainly more of an outbound culture.

所以我們正在做的一些事情，我不知道你想在這裡得到多個詳細的答案。我們當然會提供資金管理服務，並深入社區和小型企業，而不是大型社區企業。我們更關注的是一種文化，我不會說是銷售驅動的文化，但肯定更多的是一種出境文化。

Keep in mind everybody in the banking sector was defensive in the first quarter and second quarter of the year, protecting their core deposits, but now we are on the offensive. We're going out and doing those things. And a lot of the infrastructure you hear me talking about the narrative is built around giving people, the ability to have more time back to go out and grow the business. We're also really kind of tapering down.

請記住，銀行業的每個人在今年第一季和第二季都處於防禦狀態，保護其核心存款，但現在我們處於進攻狀態。我們要出去做這些事。你聽到我談論的許多基礎設施都是圍繞著讓人們有更多時間出去發展業務的能力而建立的。我們也確實在逐漸減少。

We can't be the bank for everyone so we're trying to focus on the things that we're very experienced at and skilled at. Relationship-based business is growing small community businesses and being within kind of that space, obviously partnering with our First Foundation Advisors team, which has access to a lot of clients who have businesses, who have growth, who have scale, and that partnership combined with us being out more will just grow organically.

我們不可能成為所有人的銀行，因此我們正在努力專注於我們非常有經驗和擅長的事情。基於關係的業務正在發展小型社區企業，並且處於該空間內，顯然與我們的First Foundation Advisors 團隊合作，該團隊可以接觸到許多擁有業務、有增長、有規模的客戶，並且這種合作關係結合在一起隨著我們的外出，更多的事情就會有機成長。

Very helpful. I appreciate it. Thanks, everybody.

很有幫助。我很感激。謝謝大家。

Thank you, David.

謝謝你，大衛。

Gary Tenner, D.A. Davidson.

坦納，D.A.戴維森。

Thanks. Good morning, everybody.

謝謝。大家早安。

Good morning,

早安,

Good morning.

早安.

A couple of things to ask about it. I missed some of the detail I think on the BTFP borrowing. I mean obviously, you hadn't utilized that at all through the third quarter so maybe talk about the kind of decision there, and what that rate is for the fixture you picked up.

有幾件事要問一下。我錯過了一些關於 BTFP 借款的細節。我的意思是，顯然，你在第三季根本沒有利用過這一點，所以也許可以談談那裡的決定，以及你選擇的比賽的費率是多少。

Thanks for the question, Gary. I appreciate it. We're currently at around 4.81%. I believe was the rate at which we locked. And that was relatively late in the fourth quarter so we would expect that to last for another year. The thinking on that as we saw customer service deposit leave and accelerate through the fourth quarter, we are looking for options to basically replace that funding with short cost-effective funds. And we have been I guess encouraged that test our lines, encouraged to use the Fed. And so, when putting it all together, BTFP made sense for that. It is an option. We do obviously have the ability to keep that and use it to maintain funding as other say broker deposits, and most of which are maturing over the next year come due. But I guess that was the general thinking. Does that answer it?

謝謝你的提問，加里。我很感激。目前我們的比率約為 4.81%。我相信這就是我們鎖定的速度。這是第四季度相對較晚的情況，因此我們預計這種情況將持續一年。考慮到這一點，當我們看到客戶服務存款在第四季度離開並加速時，我們正在尋找基本上用短期的、具有成本效益的資金取代該資金的選擇。我想我們一直被鼓勵測試我們的路線，被鼓勵使用美聯儲。因此，當把所有這些放在一起時，BTFP 就有意義了。這是一個選擇。顯然，我們確實有能力保留它，並用它來維持資金，就像其他人所說的經紀人存款一樣，其中大部分將在明年到期。但我想這就是普遍的想法。這能回答嗎？

Yes. No, that's helpful. I appreciate it. In terms of the customer service deposits or the investor deposits, I mean was the decline this quarter -- it seems larger magnitude certainly than if you look at prior years to kind of what that deposit line looks like. So, was it a larger magnitude decline? Was there something unusual within that?

是的。不，這很有幫助。我很感激。就客戶服務存款或投資者存款而言，我的意思是本季的下降——如果你看看前幾年的存款額度，其幅度肯定比前幾年更大。那麼，下降幅度是否更大？這其中有什麼不尋常的地方嗎？

It was -- yes. Yes. It was a little bit more than we had anticipated. I believe one client in particular was probably one of our larger depositors, and they did take some of their deposits to redeploy equally amongst other banks. Since then, our balances have started to grow back with the seasonality, plus we've also seen multiple clients bring additional balances back so far in the first part of this quarter. So, I think you'll see a rebound that's maybe not fully equal to the run-off, but probably close to it.

是的——是的。是的。這比我們預期的要多一點。我相信一位客戶可能是我們較大的儲戶之一，他們確實將部分存款重新分配到其他銀行。從那時起，我們的餘額開始隨著季節性增長而回升，我們還看到多個客戶在本季度上半年迄今恢復了額外的餘額。所以，我認為你會看到反彈，可能不完全等於決勝，但可能接近它。

Okay. And I think as part of that kind of goes into the question about the expense line as well. I think, in addition to just the dollar amount being lower, I think you had mentioned that you were able to reduce the rate paid. So just wondering how you were able to kind of push that through given no change currently to the rate environment.

好的。我認為，作為這種情況的一部分，也涉及到有關費用項目的問題。我認為，除了美元金額降低之外，我認為您還提到您能夠降低支付的費率。因此，我只是想知道，在當前利率環境沒有變化的情況下，您如何能夠推動這一進程。

Well, as the MSR portfolio, that's the higher cost of the overall customer deposit portfolio. And so, as those leave, the blended rate does come down. We haven't made a ton of modifications on a client-by-client basis so the overall rate will come back as the higher cost MSR deposits return.

嗯，作為 MSR 投資組合，這是整個客戶存款投資組合的較高成本。因此，隨著這些人離開，混合利率確實會下降。我們沒有針對每位客戶進行大量修改，因此隨著成本較高的 MSR 存款回歸，整體利率將會回升。

Yes. And to be clear, Gary, these relationships and there's many banks in this country that have these types of deposit balances, it's all Fed decision, you know, Fed driven. So, to the extent that the Fed increases rates or stays flat or goes down, those deposits will reflect based upon what the Fed does.

是的。加里，要明確的是，這些關係以及這個國家的許多銀行都擁有這些類型的存款餘額，這都是聯準會的決定，你知道，聯準會驅動的。因此，如果聯準會升息、保持不變或下降，這些存款將根據聯準會的行動而反映出來。

Okay. No, I appreciate that. Sorry, I may have misunderstood your earlier comments. It was really more about the mix of deposits that impacted it overall.

好的。不，我很欣賞這一點。抱歉，我可能誤解了您之前的評論。實際上更多的是影響其整體的存款組合。

Yes. As we had to shift from these ECR type balances into interest-bearing deposits, I think what Jamie was trying to convey is actually the cost itself was slightly lower on a blended basis.

是的。由於我們必須從這些 ECR 類型的餘額轉向計息存款，我認為 Jamie 試圖傳達的實際上是混合基礎上成本本身略低。

Right.

正確的。

And exiting the year, just I know they're not identical to interest-bearing deposits, but exiting the year because those balances were lower or heading lower through the quarter, the monthly run rate on expenses for December was $3 million. And so I think as you're thinking about costs going into the first part of '24, while those will come back up as the customer service deposits return, the cost is going to start at run rate from December as opposed to average rate for the fourth quarter as a whole.

退出今年，據我所知，它們與計息存款並不相同，但退出今年，因為這些餘額較低或整個季度都在下降，12 月份的月度費用運行率為 300 萬美元。因此，我認為，當您考慮24 年上半年的成本時，雖然這些成本會隨著客戶服務押金的返還而回升，但成本將從12 月開始按運行率開始計算，而不是12 月的平均費率。第四季整體情況。

Great. And absent of Fed cut and second quarter probably a little more kind of normalized level.

偉大的。如果沒有聯準會降息，第二季可能會更加正常化。

Second quarter for sure. Absolutely.

第二季是肯定的。絕對地。

Okay. I appreciate that. And then if I guess one more, just in terms of the expense line excluding the customer service costs, I know there's some comments, obviously, a lot of heavy lifting this year over this past year with regard to controlling expenses and reducing costs. Where do you anticipate that line again ex the customer service costs in 2024 versus '23? All these may be versus the fourth quarter run rate is a better way to think about it.

好的。我很感激。然後，如果我再猜一個，就不包括客戶服務成本的費用項目而言，我知道有一些評論，顯然，今年在控制費用和降低成本方面比去年做了很多繁重的工作。您預計 2024 年與 23 年的客戶服務成本相比，這條線會在哪裡？所有這些可能是相對於第四季度運行率更好的思考方式。

Yes. As I mentioned, you are going to see a little bit of a reset in the compensation and benefits line going here into the first as we hit the annual salary adjustments for our teammates and just the normal tax adjustment period. The other expense lines I think are relatively stable from where they were on the fourth quarter run rate. Let's see.

是的。正如我所提到的，當我們對隊友進行年薪調整以及正常的稅收調整期時，您將看到薪資和福利線有一些重置。我認為其他費用項目與第四季的運作率相比相對穩定。讓我們來看看。

Yes. I think as you get into the year, one thing to keep in mind just in conjunction with some of the more difficult decisions that we made in 2023, and you may recall, one of the line items was reduced incentive and compensation or benefit expense for our teammates as a whole. And so, as profitability normalizes, I would expect that to return to more historic levels. And so, you may see a slight tick up in the rate outside of just normal growth with business activity in the balance sheet as that right sizes back to more historical levels. But it's important to note that we are, as we said, remaining laser-focused on that, and that will rise in conjunction with revenue and profitability overall going forward. It's not something that we're just baking into our plan. We'll take a measured approach to bringing that expense back in.

是的。我認為，當你進入這一年時，需要記住一件事，連同我們在 2023 年做出的一些更困難的決定，你可能還記得，其中一個項目是減少激勵和補償或福利費用我們的隊友作為一個整體。因此，隨著獲利能力正常化，我預計獲利能力將恢復到歷史水平。因此，隨著資產負債表中業務活動的正常增長，您可能會看到利率略有上升，因為該規模回到了歷史水平。但值得注意的是，正如我們所說，我們仍然高度關注這一點，並且這一點將隨著未來收入和盈利能力的整體增長而增長。這不是我們只是將其納入我們的計劃中的事情。我們將採取謹慎的方法來收回這筆費用。

Okay. So, in other words, you're not recurring for that out of the jump in the first quarter. You're going to wait to see the revenue and profitability improve.

好的。所以，換句話說，你不會在第一季的跳躍中重複出現這種情況。您將等待看到收入和盈利能力的改善。

Right.

正確的。

Correct.

正確的。

Okay, all right. Great. Thanks very much.

好吧，好吧。偉大的。非常感謝。

Thank you.

謝謝。

Thank you.

謝謝。

That is all the time we have for the question-and-answer session. This will conclude today's conference call. We thank you for joining. You may now disconnect your line.

這就是我們問答環節的全部時間。今天的電話會議到此結束。我們感謝您的加入。現在您可以斷開線路。