First Foundation Inc (FFWM) 2024 Q2 法說會逐字稿

Greetings, and welcome to First Foundation's Second Quarter 2024 Earnings Conference Call. Today's call is being recorded. Speaking today will be Scott Kavanaugh, First Foundation's Chief Executive Officer; Jamie Britton, First Foundation's Chief Financial Officer; and Chris Naghibi, First Foundation's Chief Operating Officer. Also joining the call is Simone Lagomarsino, First Foundation Bank's President.

您好，歡迎參加 First Foundation 2024 年第二季財報電話會議。今天的通話正在錄音。今天發言的是第一基金會執行長 Scott Kavanaugh； Jamie Britton，第一基金會財務長；克里斯‧納吉比 (Chris Naghibi)，第一基金會營運長。第一基金會銀行行長西蒙娜‧拉戈馬西諾 (Simone Lagomarsino) 也加入了這次電話會議。

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. In addition, some of the discussion may include non-GAAP financial measures. For a more complete discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements and reconciliations of non-GAAP financial measures, please see the company's filings with the Securities and Exchange Commission.

在我將電話轉交給史考特之前，請注意，管理層將在今天的電話會議中做出某些預測性陳述，反映他們對公司業績和財務表現的當前看法和期望。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。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 CEO, Scott Kavanaugh.

現在我想將電話轉給執行長 Scott Kavanaugh。

Hey, good morning, and welcome. Thank you for joining us for today's second quarter 2024 earnings call. Once again, First Foundation was able to generate earnings that were above consensus and exit the quarter with positive momentum. As I had mentioned in previous calls, I believe our earnings troughed in the first quarter of 2024.

嘿，早安，歡迎光臨。感謝您參加今天的 2024 年第二季財報電話會議。First Foundation 再次實現了高於市場預期的盈利，並以積極的勢頭退出本季。正如我在之前的電話會議中提到的，我相信我們的盈利將在 2024 年第一季觸底。

This is significant when coupled with the backdrop of strengthening our balance sheet with the recently announced $228 million capital raise. I want to be clear, the Board sought the additional capital to support the growth of the company, not to satisfy any regulatory concerns. This raise allows us to accomplish that goal.

結合最近宣布的 2.28 億美元融資來加強我們的資產負債表，這一點意義重大。我想澄清的是，董事會尋求額外資本是為了支持公司的發展，而不是為了滿足任何監管問題。此次加薪使我們能夠實現這一目標。

I also want to emphasize First Foundation has never had a credit problem. Our NPAs remained at remarkably low levels, unchanged from last quarter. Charge-offs were almost non-existent at 0.01%. Our recent performance issues stemmed from an interest rate risk positioning of our balance sheet, which surfaced in 2022 when fixed rate lending surpassed historical levels while the Federal Reserve began aggressively raising rates. As you know, this put tremendous stress on our net income and reduced the flexibility we had to navigate the turbulent economic environment.

我還想強調，第一基金會從未出現過信用問題。我們的不良資產仍處於非常低的水平，與上季持平。沖銷率幾乎不存在，為 0.01%。我們最近的業績問題源於我們資產負債表的利率風險定位，這個問題在 2022 年浮出水面，當時固定利率貸款超過歷史水平，而聯準會開始大幅升息。如您所知，這給我們的淨利潤帶來了巨大壓力，並降低了我們應對動盪的經濟環境的靈活性。

With this capital raise, we will take actions to solve this issue and to begin to expand into the desirous geographic markets we are already in and have a presence. This will be outlined in our discussion by both Jamie and Chris. I noted in the first quarter that we had taken great strides to increase recurring revenue and reduce core expenses to benefit future profitability and those efforts continued in the second quarter.

透過本次融資，我們將採取行動解決這個問題，並開始擴展到我們已經進入並擁有業務的理想地域市場。傑米和克里斯將在我們的討論中概述這一點。我在第一季指出，我們在增加經常性收入和減少核心支出以有利於未來盈利能力方面取得了長足進步，這些努力在第二季度繼續進行。

Once again, we are able to improve our loans-to-deposit ratio, increase our overall loan yield and continue the process of improving the sensitivity of our balance sheet to changing rates. Capital ratios were improved as well. First Foundation Advisors once again closed the quarter at near record assets under management with profitability at FFA remaining strong. The trust department posted another solid quarter as well.

我們再次能夠提高貸存比，提高整體貸款收益率，並繼續提高資產負債表對利率變化的敏感度。資本比率也有所改善。First Foundation Advisors 再次以接近創紀錄的管理資產結束本季度，FFA 的獲利能力仍然強勁。信託部門也發布了另一個強勁的季度業績。

For the second quarter, we reported net income attributable to common shareholders of $3.1 million or $0.05 per share for both basic and diluted shares. Tangible book value, which is a non-GAAP measure, ended the quarter up $0.08 from the first quarter of 2024 to $16.43. Pretax pre-provision revenue totaled $1.9 million compared to $460,000 in the prior quarter. Interest income totaled $150.9 million for the quarter, relatively unchanged from the $150.4 million in the first quarter and up from the $145.3 million in the second quarter of 2023.

第二季度，我們報告普通股股東應佔淨利潤為 310 萬美元，基本股和稀釋股每股淨利潤為 0.05 美元。有形帳面價值是一種非公認會計準則衡量標準，該季度末較 2024 年第一季上漲 0.08 美元，達到 16.43 美元。稅前撥備收入總計 190 萬美元，而上一季為 46 萬美元。本季利息收入總計 1.509 億美元，與第一季的 1.504 億美元相比基本持平，而與 2023 年第二季的 1.453 億美元相比有所增加。

Non-interest income as a percentage of total revenue was 23% for the quarter compared to 25% for the first quarter. Our net interest margin was 1.36% as compared to 1.17% for the first quarter of 2024. This was largely driven by the return of MSR deposits. Noninterest expense was $55.6 million in the quarter compared to $50.6 million in the prior quarter. Again, largely driven by an increase in the customer service expense related to the seasonally returning MSR deposits. Despite the increase in noninterest expense, our efficiency ratio improved to 96.1% compared to 98.4% for the first quarter 2024. Adjusted return on assets, a non-GAAP measure increased to 0.10% compared to 0.03% as of March 31, 2024.

本季非利息收入佔總收入的比例為 23%，而第一季為 25%。我們的淨利差為 1.36%，而 2024 年第一季為 1.17%。這主要是由 MSR 存款回饋所推動的。本季非利息支出為 5,560 萬美元，上一季為 5,060 萬美元。同樣，這主要是由於與季節性返還 MSR 存款相關的客戶服務費用增加所致。儘管非利息費用有所增加，但我們的效率比率從 2024 年第一季的 98.4% 提高至 96.1%。調整後資產報酬率（非 GAAP 衡量標準）增加至 0.10%，截至 2024 年 3 月 31 日為 0.03%。

Our loan-to-deposit ratio improved to 93.8% in the quarter compared to 94.8% as of March 31, 2024. This was largely driven by an increase in core deposits late in the quarter. We remain committed to continuing to improve this ratio through a combination of strategically lower -- reducing lower-yielding loan balances and continuing to grow core relationship deposits.

本季我們的貸存比率從截至 2024 年 3 月 31 日的 94.8% 提高至 93.8%。這主要是由於本季末核心存款的增加所致。我們仍然致力於透過策略性降低低收益貸款餘額和繼續增加核心關係存款來繼續提高這一比率。

Total deposits were $10.8 billion in the quarter compared to $10.6 billion in the first quarter. Core non-brokered deposits totaled to 62% during the quarter, compared to 64% in the first quarter of 2024.

本季存款總額為 108 億美元，而第一季為 106 億美元。本季核心非經紀存款總額達 62%，而 2024 年第一季為 64%。

Noninterest-bearing demand deposits increased to 20% for the quarter compared to 17% of total deposits as of March 31, 2024. Our insured and collateralized deposits remained relatively unchanged compared to the first quarter at 85% of total deposits. We maintained a strong liquidity position of $4.4 billion. At these levels, our available liquidity to uninsured and uncollateralized deposits ratio slightly increased to 2.8 times.

本季無息活期存款增加至 20%，截至 2024 年 3 月 31 日占存款總額的 17%。與第一季相比，我們的保險和抵押存款保持相對不變，佔總存款的 85%。我們維持了 44 億美元的強勁流動性部位。在此水準上，我們的可用流動性與無保險和無抵押存款的比率略有上升至 2.8 倍。

Borrowings remained flat quarter-over-quarter at $1.7 billion as of June 30. Average borrowings outstanding were down to $1.4 billion or 10.4% of total average assets for the quarter compared to $1.6 billion or 11.8% of total average assets for the quarter. As I stated earlier, credit quality remains incredibly strong for our bank. Our nonperforming assets to total assets remained at 0.18% quarter-over-quarter. Loan balances ended the quarter at $10.1 billion, flat from the first quarter. C&I loans totaled 83% of loan fundings during the quarter and 86% of total fundings year-to-date.

截至 6 月 30 日，借款與上一季持平，為 17 億美元。平均未償還借款下降至 14 億美元，佔本季平均資產總額的 10.4%，而本季平均未償還借款為 16 億美元，佔平均資產總額的 11.8%。正如我之前所說，我們銀行的信貸品質仍然非常強勁。我們的不良資產佔總資產的比例較上季維持在0.18%。本季末貸款餘額為 101 億美元，與第一季持平。工商業貸款佔本季貸款資金總額的 83%，佔年初至今資金總額的 86%。

Loan yields increased nicely to 4.77% in the second quarter from 4.70% in the first quarter. First Foundation Advisors assets under management was $5.5 billion, unchanged from the end of the first quarter. Our pipeline of new relationships remain strong. Assets under advisement at FFB's trust department was $1.1 billion for the quarter compared to $1.2 billion at the end of March 31, 2023.

貸款收益率從第一季的 4.70% 大幅上升至第二季的 4.77%。First Foundation Advisors 管理的資產為 55 億美元，與第一季末持平。我們的新關係管道依然強勁。本季 FFB 信託部門提供諮詢的資產為 11 億美元，截至 2023 年 3 月 31 日末的資產為 12 億美元。

Once again, I would like to close by reiterating my appreciation for the incredible efforts and unwavering dedication of our entire team. I remain incredibly thankful to each of the company's wonderful employees.

最後，我想再次對我們整個團隊的巨大努力和堅定不移的奉獻精神表示讚賞。我仍然非常感謝公司每一位優秀的員工。

I will now turn the call over to Jamie to cover the financials in greater detail.

我現在將把電話轉給傑米，以更詳細地介紹財務狀況。

Thank you, Scott. Before diving into the capital raise and our strategic objectives, Chris and I will start with a brief review of the quarter.

謝謝你，斯科特。在深入探討融資和我們的策略目標之前，克里斯和我將首先簡要回顧本季。

I'll begin with the balance sheet and the improvement in our net interest margin, which, as Scott mentioned, expanded 19 basis points during the quarter from 1.17% in the first to 1.36% in the second. Our earning asset yield continues to improve, increasing to 4.71% in Q2, which is 7 basis points above the 4.64% reported in Q1 and 20 basis points above the year ago period, 4.51%. After remaining relatively stable for the past several periods, loan yields made a larger contribution this quarter, increasing from 4.7% in Q1 to 4.77% in Q2.

我將從資產負債表和淨利差的改善開始，正如史考特所提到的，淨利差在本季度擴大了 19 個基點，從第一季的 1.17% 擴大到第二季的 1.36%。我們的獲利資產收益率持續改善，第二季增至 4.71%，比第一季的 4.64% 高 7 個基點，比去年同期的 4.51% 高 20 個基點。在經歷了前幾季的相對穩定後，本季貸款收益率貢獻較大，從第一季的4.7%上升至第二季的4.77%。

Though the available-for-sale portfolios yield improved modestly this quarter by 2 basis points due in part to new investment yields of approximately 5.8% and a mix shift toward health maturity led to a slight reduction in the overall investment portfolio yield, which was down this quarter from 4.06% in the first to 4% in the second.

儘管本季可供出售投資組合收益率小幅提高了 2 個基點，部分原因是新投資收益率約為 5.8%，而且向健康成熟度的混合轉變導致整體投資組合收益率略有下降。第一季的4.06%上升到第二季的4%。

As we have noted in past calls, we are comfortable using safe, high-quality securities in the investment portfolio to support our liquidity position, improve the balance sheet rate profile and more efficiently enhance recurring revenue. In this vein, I'd note, our ending balance for the quarter was higher than the quarter's average balance.

正如我們在過去的電話會議中所指出的，我們願意在投資組合中使用安全、優質的證券來支持我們的流動性頭寸、改善資產負債表利率狀況並更有效地提高經常性收入。在這方面，我要指出的是，我們本季的期末餘額高於本季的平均餘額。

Turning to funding costs. Like last quarter, I'd like to start by highlighting the seasonal nature of our noninterest-bearing deposit portfolio and its MSR escrow balances, which, as expected, continued their return to the balance sheet this quarter following their normal annual outflows late in the fourth before beginning to rebuild late in the first.

轉向融資成本。與上個季度一樣，我想首先強調我們的無息存款投資組合及其 MSR 託管餘額的季節性特徵，正如預期的那樣，繼 2019 年末正常的年度流出之後，本季度繼續返回資產負債表。一階段後期開始重建之前的第四階段。

Whereas the first quarter's mix towards interest-bearing liabilities, which, as a reminder, are temporarily ramped each year to replace the seasonally decline in noninterest MSR escrow balances weighed on our net interest margin in Q1, the opposite was true in the second. Coupled with the improvement in loan yields, the shift back to noninterest-bearing MSR deposits helped return the net interest margin to its Q4 level of 1.36%.

儘管第一季的有息負債組合每年都會暫時增加，以取代非利息 MSR 託管餘額的季節性下降，這對我們第一季的淨息差造成了壓力，但第二季的情況恰恰相反。再加上貸款收益率的改善，轉向無息MSR存款有助於淨利差恢復至第四季1.36%的水準。

These shifts led to an improvement in net interest income for the quarter, which increased from $38.4 million in the first to $43.8 million in the second. The shift led to a commensurate increase in customer service costs as well, which also increased $5.4 million in the quarter. Net-net, the balance sheet's contribution to earnings remain stable.

這些變化導致本季淨利息收入有所改善，從第一季的 3,840 萬美元增加到第二季的 4,380 萬美元。這項轉變也導致客戶服務成本相應增加，本季也增加了 540 萬美元。淨額扣除後，資產負債表對獲利的貢獻維持穩定。

Before leaving this topic, as I mentioned last quarter, though these seasonal fluctuations caused shifts in our net interest margin and noninterest expense each year, we appreciate the holistic nature of these relationships and are comfortable continuing to manage around their predictable seasonal inflows and outflows. I'd also note that given continued growth in these balances through the quarter, we would expect the third quarter's average balance and related customer service costs to be higher than the second quarter's by approximately 15%.

在離開這個主題之前，正如我上個季度提到的，儘管這些季節性波動導致我們每年的淨利差和非利息支出發生變化，但我們欣賞這些關係的整體性，並願意繼續圍繞其可預測的季節性流入和流出進行管理。我還想指出，鑑於本季這些餘額持續成長，我們預計第三季的平均餘額和相關客戶服務成本將比第二季高出約 15%。

As is typical in an elongated plateau during a rate cycle, we continue to experience modest pressure on interest-bearing liability costs, which are up 3 basis points this quarter from 4.24% in the first to 4.27% in the second.

正如利率週期中長期平穩期的典型情況一樣，我們繼續面臨著帶息負債成本的適度壓力，本季的帶息負債成本上升了3 個基點，從第一季的4.24% 上升到第二季度的4.27%。

Both borrowing costs and interest-bearing deposit costs were slightly higher, though we reduced some of our higher cost deposits to account for the returning noninterest-bearing MSR escrow balances, which on its own helps costs, we took advantage of relatively attractive broker deposit costs and shifted the $350 million of balances underlying our recently initiated cash flow hedge from short-term FHLB advances to short-term broker deposits.

借款成本和計息存款成本均略高，儘管我們減少了一些成本較高的存款以計入返還的無息MSR 託管餘額，這本身就有助於降低成本，但我們利用了相對有吸引力的經紀商存款成本並將我們最近發起的現金流量對沖的 3.5 億美元餘額從短期 FHLB 預付款轉移到短期經紀人存款。

The result of this move benefited net interest income, but it did cause a shift in cost towards deposits as well as a modest quarter-over-quarter increase in our brokered deposit concentration, which, as Scott alluded to, slightly increased this quarter. As noted on last quarter’s call by taking advantage of the market's early year optimism for declining rates via the swap and additional securities balances, we were able to add new rate insensitive recurring revenue and we will continue to look for similar opportunities to both enhance revenue and stabilize our rate profile going forward.

這項措施的結果有利於淨利息收入，但它確實導致了存款成本的轉變，以及我們的經紀存款集中度環比小幅增加，正如斯科特提到的那樣，本季度略有增加。正如上個季度的電話會議所指出的，透過利用市場年初對利率下降的樂觀情緒，透過掉期和額外的證券餘額，我們能夠增加新的對利率不敏感的經常性收入，並且我們將繼續尋找類似的機會提高收入並穩定我們未來的利率狀況。

Finally, I'd note that monthly trends in deposit costs exited the quarter consistent with quarterly averages with total interest-bearing deposit costs ending the month of June at 4.28%. We appreciate the work our teams are doing in each deposit channel to remain responsive to our clients' needs while holding the line on costs.Shifting to the income statement. Interest income grew again this quarter. On a slightly smaller average earning asset base, we reported $150.9 million for the second quarter versus $150.5 million in the first. Interest expense saw a decline, which, as discussed, was due to lower balances resulting from the return of average noninterest-bearing MSR escrow deposits. Combined with a slight improvement in net interest income, the $5 million decrease in interest expense benefited net interest income by $5.4 million.

最後，我要指出的是，本季存款成本的月趨勢與季平均一致，截至 6 月的計息存款成本總額為 4.28%。我們讚賞我們的團隊在每個存款管道所做的工作，以保持對客戶需求的回應，同時控製成本。本季利息收入再次成長。在平均獲利資產基礎略小的情況下，我們報告第二季為 1.509 億美元，而第一季為 1.505 億美元。利息支出有所下降，正如所討論的，這是由於平均無息 MSR 託管存款的返還導致餘額減少。加上淨利息收入略有改善，利息支出減少 500 萬美元，使淨利息收入增加 540 萬美元。

We reported a negative provision expense for the quarter, driven by reductions in both the reserve on our investment portfolio and the reserve on unused commitments. The balance for our APL on loans, however, was stable again this quarter at 29 basis points. And as Scott mentioned, asset quality remains stable.

由於投資組合準備金和未使用承諾準備金減少，我們報告本季撥備費用為負。然而，本季我們的 APL 貸款餘額再次穩定在 29 個基點。正如斯科特所提到的，資產品質保持穩定。

Wealth and trust-related fees were higher in the quarter, up from $8.6 million in the first to $9.2 million in the second. As Scott mentioned, AUM ended the quarter at $5.5 billion, consistent with the first quarter's ending balance and we are pleased with the pipelines we see in the business. As we'll discuss in a moment, we are excited about the opportunity to accelerate growth in First Foundation Advisors and the trust department following the capital raise.

本季財富和信託相關費用較高，從第一季的 860 萬美元增至第二季的 920 萬美元。正如 Scott 所提到的，本季末 AUM 為 55 億美元，與第一季期末餘額一致，我們對業務中看到的管道感到滿意。正如我們稍後將討論的，我們很高興有機會在融資後加速 First Foundation Advisors 和信託部門的發展。

Moving to non interest expense, outside of customer service costs remaining non interest expense categories totaled $39.5 million for the quarter, slightly lower than the first quarter's $39.9 million. Compensation and benefits expense was lower by $0.3 million in the quarter as the impacts of the annual tax reset that elevate the expenses in the first quarter each year were not as much of a factor in the second. In addition, we recognized the full quarter benefit of our decision late in the first to exit our equipment finance business.

轉向非利息支出，本季除客戶服務成本之外的其餘非利息支出類別總計 3,950 萬美元，略低於第一季的 3,990 萬美元。本季的薪資和福利費用減少了 30 萬美元，因為每年第一季費用增加的年度稅收重置的影響在第二季度不再是一個重要因素。此外，我們認識到我們最早決定退出設備融資業務所帶來的整個季度的效益。

As shown again this quarter, we are maintaining our disciplined approach to core expenses and we continue to do so. We plan to continue to do so even as we make strategic investments for future growth following the capital raise, we are committed to controlling our discretionary investments and ensuring any plans for measured investments going forward across our markets, our both in line with our strategic objectives and supported by commensurate growth in revenue and profitability.

正如本季再次表明的那樣，我們將繼續保持對核心支出的嚴格態度，並將繼續這樣做。我們計劃繼續這樣做，即使我們在融資後為未來成長進行策略性投資，我們也致力於控制我們的可自由支配投資，並確保在我們的市場上進行任何可衡量的投資計劃，這兩者都符合我們的策略目標並得到收入和獲利能力相應成長的支持。

Moving finally to capital and liquidity. We are pleased to highlight another quarter's improvement in First Foundation Inc's capital ratios. Our total risk-based capital ratio, which we estimate will be 12.6%, increased by 11 basis points in the quarter and by 84 basis points since Q2 of 2023.

最後轉向資本和流動性。我們很高興地強調 First Foundation Inc 資本比率又一個季度的改善。我們的總風險資本比率預計為 12.6%，本季增加了 11 個基點，自 2023 年第二季以來增加了 84 個基點。

Our liquidity and funding positions also remained strong this quarter as uninsured and uncollateralized deposits remain low, available liquidity remains high. Our loan-to-deposit ratio declined and our core deposit concentration remained relatively stable.

本季我們的流動性和資金部位也保持強勁，因為無保險和無抵押存款仍然很低，可用流動性仍然很高。存貸比下降，核心存款集中度維持相對穩定。

Our capital ratios and liquidity position were strengthened further since quarter end by the announced capital raise, providing significant flexibility to further strengthen our balance sheet to capitalize on the opportunities ahead and improve our earnings profile going forward.

自季度末以來，透過宣布的增資，我們的資本比率和流動性狀況進一步得到加強，為進一步加強我們的資產負債表、利用未來的機會並改善我們的盈利狀況提供了巨大的靈活性。

Before jumping into more detail in our plans here, I'll turn it over to Chris to provide our final thoughts on the quarter. Chris?

在詳細介紹我們的計劃之前，我將把它交給克里斯，以提供我們對本季的最終想法。克里斯？

Thank you, Jamie.

謝謝你，傑米。

Good morning, today, and I will quickly touch on our second quarter 2024 for lending operations, deposits and the strength of our assets. As Jamie mentioned before, concluding the call, the management team and I want to provide further detail and insight into our newly announced capital raise initiative and discuss both near term strategic implications for the forthcoming third quarter as well as our longer-term vision.

大家早安，今天，我將快速談談 2024 年第二季的貸款業務、存款和資產實力。正如傑米之前在電話會議結束時提到的，我和管理團隊希望提供有關我們新宣布的融資計劃的更多細節和見解，並討論對即將到來的第三季度的近期戰略影響以及我們的長期願景。

Let's first focus on the institution's lending operations. Personalization continues to maintain a sharp focus on remediating our fixed rate lending portfolios position in the current interest rate environment. Our goal has been and continues to be to reduce that exposure and diversify into index plus margin based pricing, focusing on conservatively underwritten C&I lending where we prioritize relationships.

我們首先關注該機構的貸款業務。個人化繼續專注於修復我們在當前利率環境下的固定利率貸款組合狀況。我們的目標一直是並將繼續是減少這種風險敞口，並實現基於指數加保證金的定價多元化，重點關注保守承保的工商業貸款，我們優先考慮關係。

I want to be clear that while historically multifamily originations outpaced C&I lending for Foundation has been deeply steeped in C&I lending dating back to the bank's inception, the more robust C-19 was built out nearly10 years ago in order to help balance out the concentration risk in the underlying loan portfolio.

我想澄清的是，雖然從歷史上看，多戶型貸款的發展速度超過了工商業貸款，但自銀行成立之初，基金會就一直深耕工商業貸款，但更強大的C-19 是在近10 年前建立的，目的是幫助平衡集中風險在基礎貸款組合中。

First Foundation is not a real estate lender growing into the C&I business. C&I lending has been a long-standing and important part of the underlying franchise value.

First Foundation 並不是一家涉足 C&I 業務的房地產貸款機構。工商業貸款一直是潛在特許經營價值的一個長期且重要的組成部分。

To that effect, I would be remiss if we did not highlight how amazing this team has been. Over 85% of our loan origination volume this year has been from the maturation of a prolonged strategy building on C&I relationships. From our former C&I Chief Credit Officer, who is now our Chief Lending Officer, David Masucci; to Eric Graham, our Corporate Banking Director; to Riya Kumari, our Chief Commercial Credit Officer; to Lillian Gavin, our Chief Credit Officer, our C&I team has done incredible work.

為此，如果我們不強調這支球隊有多出色，那就是我的失職。今年我們超過 85% 的貸款發放量來自於基於 C&I 關係的長期策略的成熟。來自我們的前 C&I 首席信貸官、現任首席貸款官 David Masucci；致 Eric Graham（Eric Graham），我們的企業銀行業務總監； Riya Kumari，我們的首席商業信貸官；對於我們的首席信貸官 Lillian Gavin 來說，我們的 C&I 團隊做了令人難以置信的工作。

Our middle market focused teams are exceptional as well. From Scott Noren, our Commercial Banking Manager to Tobias Halbmaier, our Director of Guaranteed Lending, our teams have put in the work and have really helped drive relationship-focused C&I growth when we needed it most.

我們專注於中端市場的團隊也非常出色。從我們的商業銀行經理 Scott Noren 到我們的擔保貸款總監 Tobias Halbmaier，我們的團隊投入了工作，並在我們最需要的時候真正幫助推動了以關係為中心的 C&I 成長。

As I've stated on previous calls, C&I lending growth in the future, outpacing that in commercial real estate lending will provide justification for a continued increase in our CECL reserves as a byproduct of the asset class and historical data that supports it. This will be notable in both the growth of the reserve as a percentage of the portfolio as well as a total dollar amount of the reserve.

正如我在先前的電話會議中所說，未來工商業貸款的成長速度將超過商業房地產貸款，這將為我們的 CECL 儲備金持續增加提供理由，作為資產類別和支持它的歷史數據的副產品。這在儲備金佔投資組合的百分比以及儲備金總額的成長中都將引人注目。

One of the many complexities the market is still adapting to is navigating CECL's future forecast of life of loan losses at origination or acquisition of loans in the wake of 14 years of artificial interest rate deflation and a lack of meaningful historical loss data in some asset classes to support additional reserves. We continue to believe this increase in loan loss reserves will be a strong step in positioning the company in line with the risk profile of peers.

市場仍在適應的眾多複雜問題之一是，在經歷了 14 年的人為利率通縮以及某些資產類別缺乏有意義的歷史損失數據之後，CECL 對發放或獲取貸款時的貸款損失期限的未來預測以支援額外儲備。我們仍然相信，貸款損失準備金的增加將是使公司與同業風險狀況保持一致的重要一步。

As a reminder, given the relatively short duration of the multifamily asset class and the cash flow focus of most investors, we anticipate future benefit from anticipated repricing activity. Long term, we aim to diversify our asset base, which will gradually increase our CECL reserves as a more balanced portfolio will naturally require higher reserves.

提醒一下，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，我們預計未來將從預期的重新定價活動中受益。從長遠來看，我們的目標是實現資產基礎多元化，這將逐步增加我們的CECL儲備，因為更平衡的投資組合自然需要更高的儲備。

To help facilitate this transformation in the near term, First Foundation's strategic plan does include the thoughtful and strategic sale and/or securitization of loans into the market. This systematic and careful reduction in our multifamily concentration will provide some noteworthy and meaningful benefits.

為了在短期內幫助促進這一轉變，第一基金會的策略計劃確實包括向市場進行深思熟慮的策略性貸款銷售和/或證券化。系統性而謹慎地減少我們的多戶住宅集中度將帶來一些值得注意且有意義的好處。

First, it will allow the bank to blunt its interest rate risk exposure to the looming maturities in the portfolio. Specifically, reducing lower-yielding assets that mature during 2025, 2026 and potentially 2027 maturities that came from unprecedented growth in the bank's multifamily balance sheet over the last 3 years.

首先，它將允許銀行減少投資組合中即將到期的利率風險敞口。具體來說，減少在 2025 年、2026 年以及可能在 2027 年到期的低收益資產，這些資產是由於過去 3 年銀行多戶家庭資產負債表前所未有的增長而產生的。

Second, it will allow the bank to redeploy this capital into higher-yielding loans much sooner than waiting for the organic maturity of the underlying assets. The management team and I will further elaborate on this nuance in addition to identifying how we plan on leveraging our new capital to highlight our commitment to aligning our reserves with peers prior to the conclusion of this call.

其次，這將使銀行能夠比等待基礎資產的有機成熟更快地將這些資本重新部署到收益更高的貸款中。我和管理團隊將進一步詳細闡述這一細微差別，並確定我們計劃如何利用新資本來強調我們在本次電話會議結束之前使我們的儲備與同行保持一致的承諾。

Our loan portfolio as of June 30, 2024 can be summarized with the following composition: 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 residence loans; 6% nonowner-occupied commercial real estate and approximately 1% of land and construction loans.

截至 2024 年 6 月 30 日，我們的貸款組合可歸納為以下組成：多戶貸款佔 51%，低於 2022 年第三季約 54% 的最高水準； 32% 的商業企業貸款，包括業主自用商業房地產和設備融資，而截至 2022 年第四季度，這一比例約為 28%。 6% 的非業主自用商業房地產以及約 1% 的土地和建築貸款。

From an operational perspective, we continue to challenge our lending departments and adapt to a heavy focus on asset quality. We want to ensure the assets we do have on the books continue to remain as strong and are as reflective of the same credit culture today as they were at origination. If there are cracks coming in the economy, we want to spot them proactively. We continue to maintain our steadfast, cautious yet proactive approach to growing with best-in-class asset quality as indicated by our historical performance.

從營運角度來看，我們繼續對貸款部門提出挑戰，並適應對資產品質的高度關注。我們希望確保我們帳面上的資產持續保持強勁，並反映與最初相同的信用文化。如果經濟出現裂縫，我們希望主動發現它們。正如我們的歷史表現所表明的那樣，我們將繼續保持堅定、謹慎而積極的態度，以一流的資產品質實現成長。

As you would expect, loan fundings continue to be comprised of primarily high-quality adjustable rate C&I, SBA and mortgage lending, totaling $516 million for the second quarter offset by loan paydowns and payoffs of $515 million for this quarter.

正如您所預期的，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，第二季度總計 5.16 億美元，被本季 5.15 億美元的貸款還款和還款所抵消。

Moving quickly to deposit operations. The bank continues to focus on deeper relationships with our clients which we believe, combined with our value proposition of service distinguishes us in the marketplace. This ethos will be pivotal to the execution of deposit growth as we focus on greater organic growth and lessening the interest rate impacts from higher cost deposits and noncore funding. This will also be aided by the aforementioned multifamily concentration reductions and will assist in limiting exposure to changes in the deposit franchise.

迅速轉向存款業務。該銀行繼續專注於與客戶建立更深入的關係，我們相信這一點與我們的服務價值主張相結合，使我們在市場上脫穎而出。這種精神對於存款成長的執行至關重要，因為我們專注於更大的有機成長並減少更高的存款成本和非核心融資對利率的影響。上述多戶住宅集中度的降低也將有助於這一點，並有助於限制存款特許經營權變化的風險。

As you have heard on previous calls, we are still keeping a close eye on liquidity and funding in the near term but have already begun to refocus on our core funding growth efforts and have made sizable changes that reflected in the quarter. Continued improvement in funding and the additional capital will allow us to allocate more attention to driving down any overdependence on broker deposits and wholesale borrowings.

正如您在先前的電話會議中所聽到的那樣，我們仍在密切關注近期的流動性和融資情況，但已經開始重新關注我們的核心融資成長工作，並做出了本季反映的重大變化。資金和額外資本的持續改善將使我們能夠更加關注降低對經紀人存款和批發借款的過度依賴。

The breakdown of our current deposits is as follows: money market and savings at 30%; certificates of deposits, 29%, interest-bearing demand deposits, 27% and noninterest-bearing demand deposits at 14%. Our core deposits are geographically largely unchanged with California accounting for 36% of total deposits; Florida at 36% and Texas at 10%.

我們的活期存款明細如下：貨幣市場和儲蓄30%；存款證29%，有息活期存款27%，無利息活期存款14%。我們的核心存款在地域上基本上沒有變化，加州佔存款總額的 36%；佛羅裡達州為 36%，德州為 10%。

Outside of this majority, Nevada, Hawaii and other states make up the remaining 18% of the total. The internal culture has seen a galvanized pivot from a defensive focused stance to an offensive leaning one where our teams in the digital branch and our physical branches can focus on delivering service and organically growing our business, the timing of which could not be better.

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%。內部文化已經從注重防禦的立場轉向進攻性的立場，我們的數位分支機構和實體分支機構的團隊可以專注於提供服務和有機發展我們的業務，時機再好不過了。

While we operate with a rate neutral mindset, we have begun preparing for a changing landscape ahead of potential rate cuts during the 2024 calendar year by strategically deprioritizing marketing based on rate and instead highlighting relationships, community and service.

雖然我們以利率中立的心態開展業務，但我們已開始為 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。

If we are fortunate enough to see a rate cut in 2024, the benefits to First Foundation's earnings will be felt quickly given the company's liability sensitivity. 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. I continue to be grateful for so many wonderful colleagues who genuinely care about the long-term viability of the company. We have endured a lot the last 2 years, but now it is time to shift our focus to offense. If adversity builds character, this team has developed a tremendous amount of character, and I can proudly tell you they are ready to prove what they can do next.

如果我們有幸在 2024 年看到降息，考慮到 First Foundation 的責任敏感性，我們很快就會感受到該公司盈利的好處。我們的經營方式正在發生很多變化。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。我仍然感謝這麼多真正關心公司長期生存的優秀同事。過去兩年我們經歷了很多，但現在是時候把我們的注意力轉向進攻了。如果逆境塑造了性格，那麼這個團隊已經培養了巨大的性格，我可以自豪地告訴你，他們已經準備好證明他們下一步可以做什麼。

Okay. Well, a terrific way to wrap up the quarter. As we continue to say, First Foundation's success is certainly a result of its people, and Chris' sentiment couldn't be a better way to kick off a discussion of the capital raise and where we see the company going from here because importantly, we value the culture our team has built and nurtured over the years, and we believe our focus on customer experience, providing a holistic set of banking options and leaning into our expertise to help build our bank and support our communities have been foundational to our success.

好的。嗯，這是結束本季的絕佳方式。正如我們繼續說的，First Foundation 的成功無疑是其員工的結果，克里斯的觀點是引發有關融資以及我們對公司未來走向的討論的最佳方式，因為重要的是，我們我們重視我們的團隊多年來建立和培育的文化，我們相信，我們對客戶體驗的關注、提供一整套銀行選擇以及利用我們的專業知識來幫助建立我們的銀行和支持我們的社區是我們成功的基礎。

Rather than using the capital raise as an inflection point to focus on new businesses or materially change our old, we hope to use it as an opportunity to get back to what we do best, leading with our people and sharing with our markets the hallmarks that have made First Foundation such a valued partner to our clients and a trusted steward of our shareholders' capital before we can pivot entirely to offense.

我們希望利用這次融資作為一個機會，回到我們最擅長的領域，與我們的員工一起領導，並與我們的市場分享我們的標誌，而不是利用融資作為一個轉折點來專注於新業務或實質性改變我們的舊業務。

however, there are some near-term actions we would like to take to further strengthen the balance sheet and stabilize our earnings profile. In this first phase, which we expect to complete this quarter, we set out to successfully complete our capital raise, which we've done, move a portion of our lower-yielding multifamily loans to held for sale, initiate a detailed review of our ACL methodology to address once and for all various stakeholder concerns and begin ensuring that once we fully pivot back to offense, we will be ready with cascading organizational goals and incentive alignment necessary to ensure our measured investments achieve their goals.

然而，我們希望採取一些近期行動來進一步加強資產負債表並穩定我們的獲利狀況。在我們預計於本季完成的第一階段，我們著手成功完成我們已經完成的融資，將部分低收益多戶貸款轉為持有待售，啟動對我們的ACL 方法可以一勞永逸地解決所有利益相關者的擔憂，並開始確保一旦我們完全轉向進攻，我們將準備好級聯的組織目標和必要的激勵調整，以確保我們衡量的投資實現其目標。

Together, we believe these actions set us up for success, leaving us with a strengthened capital and liquidity position, a reduction to our multifamily concentration and ACL within range of similarly situated peers greater flexibility to decrease our reliance on wholesale funding going forward and of course, improvements to our net interest margin and core profitability that are necessary to make the investments available across our footprint which we believe will lead to further geographic and product diversification, growth in core funding and improved revenue mix based even larger part on stable recurring fee income and most of all, reduced through-cycle earnings variability that will lower our cost of equity and enhance long-term shareholder value.

總而言之，我們相信這些行動將為我們的成功奠定基礎，使我們的資本和流動性狀況得到加強，減少我們的多戶家庭集中度，並在類似情況的同行範圍內減少ACL，提高靈活性，減少我們未來對批發融資的依賴，當然提高我們的淨利差和核心盈利能力，這是在我們的業務範圍內進行投資所必需的，我們相信這將導致進一步的地域和產品多元化、核心資金的成長和收入結構的改善，這在很大程度上取決於穩定的經常性費用收入最重要的是，整個週期獲利波動性的降低將降低我們的股本成本並提高長期股東價值。

Now the near-term actions are not without hard work, we have already initiated our detailed ACL methodology review, and we are confident it will be completed this quarter. But simply moving some of our lower-yielding multifamily loans to held for sale this quarter does not mean we are done.

現在，近期的行動並非沒有艱苦的努力，我們已經啟動了詳細的 ACL 方法審查，我們有信心它將在本季度完成。但僅僅在本季度將我們的一些低收益多戶貸款轉為待售並不意味著我們已經完成了。

As we did with our new investors during the capital raise, we believe it is important to engage with those willing to dig into our portfolio, understand why we hold such conviction in its credit quality, model through the loans repricing characteristics and arrive at a fair execution price that we would be comfortable ultimately sharing on these calls with you.

正如我們在融資期間與新投資者所做的那樣，我們認為與那些願意深入研究我們的投資組合的人接觸非常重要，了解為什麼我們對其信用品質抱有如此信念，透過貸款重新定價特徵進行建模並得出公平的結果我們很樂意最終在這些電話會議上與您分享執行價格。

That takes time but we are committed to best execution, and our team is willing to do the hard work to ensure we get it.as an organization I can.

這需要時間，但我們致力於最佳執行，我們的團隊願意付出艱苦的努力來確保我們實現這一目標。

I can assure you we are excited to pivot again to offense. We are thrilled for the growth opportunities this will provide to our teammates who have already invested so much. We are honored for the opportunities to grow our existing relationships and build new ones across our markets.

我可以向你保證，我們很高興能夠再次轉向進攻。我們很高興這將為我們已經投入大量資金的隊友提供成長機會。我們很榮幸有機會發展我們現有的關係並在我們的市場上建立新的關係。

We look forward to the opportunity to return our financial performance to levels our shareholders deserve by investing our resources and these strategic objectives, success will not occur overnight, but by the end of 2026, we are confident we can get First Foundation's ROA back to 90 basis points to 100 basis points, ROTCE back to 10% to 12% and our CRE concentration below 400%. Coupled with the improvements we expect in our liquidity, interest rate and credit risk profiles, a long-term Tier 1 risk-based capital ratio in the 12% to 13% range will ready First Foundation with a strong risk capital balance poised for further growth in 2027 and beyond.

我們期待有機會透過投資我們的資源和這些策略目標，將我們的財務表現恢復到股東應有的水平，成功不會一蹴而就，但到 2026 年底，我們有信心能夠讓 First Foundation 的 ROA 回到 90基點降至100 個基點，ROTCE 回到10% 至12%，我們的CRE 濃度低於400%。加上我們預期流動性、利率和信用風險狀況的改善，12%至13%範圍內的長期一級風險資本比率將為First Foundation做好準備，使其具備強勁的風險資本餘額，為進一步增長做好準備2027 年及以後。

With that, I'd like to turn it to Chris to provide further detail.

有了這個，我想請克里斯提供更多細節。

Thank you again, Jamie. As Jamie noted, and as you can see on Page 3 of the provided investor deck, the near-term actions in the third quarter of 2024 will be about repositioning the balance sheet and stabilizing earnings. A big part of the mechanics around achieving this goal will come from moving loans to held for sale as well as a thorough review of the bank's current ACL methodology.

再次感謝你，傑米。正如 Jamie 指出的，正如您在所提供的投資者資料的第 3 頁上看到的那樣，2024 年第三季的近期行動將是重新定位資產負債表和穩定收益。實現這一目標的大部分機制將來自於將貸款轉為持有待售，以及對銀行當前 ACL 方法的徹底審查。

First Foundation intends to move approximately 20% of its existing multifamily loans to a held-for-sale designation. I would caution against looking at recent market transactions as the sole indicator of the potential marks we could see on the move. And I would certainly emphasize this point when considering final execution prices.

First Foundation 打算將其現有多戶家庭貸款的約 20% 轉為持有待售貸款。我警告不要將最近的市場交易視為我們可以看到的潛在趨勢的唯一指標。在考慮最終執行價格時我肯定會強調這一點。

As Jamie mentioned a moment ago, we are willing to put in the time and work here. First Foundation intends to explore every avenue to ensure best execution, including options through its relationship with Freddie Mac, as well as potential private party sales.

正如傑米剛才提到的，我們願意在這裡投入時間和工作。第一基金會打算探索各種途徑以確保最佳執行，包括透過與房地美的關係以及潛在的私人聚會銷售進行選擇。

First Foundation is a Freddie Mac seller servicer and has successfully completed numerous securitizations with Freddie in the past. While this is no longer a part of our normal business, we still have the expertise to invest, and we have historically found that upon doing so, execution and settlement can contrast market pricing based on the desirability of the bank's underlying affordable housing multifamily loan characteristics.I detailed on last quarter's earnings call that support our credit quality, such as low-income housing components, rent-controlled properties and others assist in Freddie's duty-to-serve requirements as well. Our asset quality remains strong.

First Foundation 是房地美賣方服務商，過去已成功與房地美完成了多次證券化。雖然這不再是我們正常業務的一部分，但我們仍然擁有投資專業知識，而且我們從歷史上發現，這樣做後，執行和結算可以根據銀行基本經濟適用房多戶貸款特徵的意願來對比市場定價我詳細介紹了上個季度的財報電話會議，這些電話會議支持我們的信貸質量，例如低收入住房組成部分、租金管制房產以及其他也有助於房地美履行服務義務要求的房產。我們的資產品質依然強勁。

So given there is an increasing likelihood of rate cuts to end 2024 and through 2025, we anticipate that the environment for execution will only improve through this process. Management is currently in the process of working with an outside third party to determine the potential mark as a result of a fair market value analysis, but I will reiterate again that we are committed to best execution as we work to ultimately disposition the assets and reduce our multifamily real estate and fixed rate asset exposures.

因此，考慮到 2024 年底和 2025 年降息的可能性越來越大，我們預期執行環境只會透過這個過程得到改善。管理層目前正在與外部第三方合作，透過公平的市場價值分析來確定潛在的分數，但我要再次重申，我們致力於在最終處置資產並減少資產的過程中實現最佳執行。房地產和固定利率資產風險。

The historical loss factor has not led to the bank setting aside large reserves under the current expected credit loss model. We do believe, however, that there is an element of interest rate risk in the market, which is truly unprecedented.

歷史損失因素並未導致銀行在目前預期信用損失模型下提列大量準備金。然而，我們確實相信市場中存在利率風險因素，這確實是前所未有的。

And that First Foundation needs to initiate a detailed review of its ACL methodology. As a result, I want to be clear, we do not believe we have credit losses on the horizon as a part of the month long due diligence. Fortresss not only conducted a thorough internal due diligence of the bank's underlying loan portfolio, but they also engaged a nationally recognized independent third party due diligence and credit review.

First Foundation 需要對其 ACL 方法進行詳細審查。因此，我想澄清的是，作為為期一個月的盡職調查的一部分，我們認為我們不會出現信用損失。Fortress 不僅對銀行的基礎貸款組合進行了徹底的內部盡職調查，而且還聘請了國家認可的獨立第三方盡職調查和信用審查。

If there is one thing I can assure the market is that the confidence in our underlying credit quality relative to our peers is shared by management and our new investors. It helps that almost 70% of our portfolio is focused on relatively safe multifamily, one to four single-family and municipal loans. But our success is another testament to the incredible team we have built and the seriousness with which our culture approaches credit as we have always done.

如果有一件事我可以向市場保證的話，那就是管理階層和新投資者對我們相對於同業的基本信用品質充滿信心。我們近 70% 的投資組合專注於相對安全的多戶住宅、一到四戶單戶住宅和市政貸款，這一點很有幫助。但我們的成功再次證明了我們所建立的令人難以置信的團隊以及我們的文化一如既往地對待信用的嚴肅性。

We intend on providing confidence that our reserves are adequate to address any changes in credit quality or interest rate risk that may be present in the market and we believe that to do so, a holistic review of our methodology is appropriate. A result of this review will likely conclude in an increase to the bank's reserve to be more in line with similarly sized and concentrated peers.

我們打算讓人們相信，我們的準備金足以應對市場上可能存在的信貸品質或利率風險的任何變化，並且我們認為，為此，對我們的方法進行全面審查是適當的。這次審查的結果可能是增加該銀行的準備金，以與規模和集中度相似的同行更加一致。

Regarding the loans we are moving to held for sale. The move will focus on loans with balances approximately between 1.5 million and 4.5 million and which are set to reprice in the next 18 to 36 months. Reducing these balances will mute the impacts of the historical loan growth we saw in 2022 and the repricing uncertainty they could introduce on over the horizon.

關於我們將轉為持有待售的貸款。此舉將重點關注餘額約在 150 萬至 450 萬之間的貸款，這些貸款將在未來 18 至 36 個月內重新定價。減少這些餘額將削弱我們在 2022 年看到的歷史貸款成長的影響以及它們可能帶來的重新定價不確定性。

The market needs to be able to model this pivot. And we, as management will provide additional detail of our findings during our Q3 earnings call. The second phase of our strategic plan is the most exciting, and we hope that it gives the market our employees and our shareholders, the confidence in the strategic vision for the medium and long term string of First Foundation, frankly put, we are going to go on the offensive with measured investments to capitalize on what will surely be market opportunities ahead.

市場需要能夠模擬這一點。作為管理層，我們將在第三季的財報電話會議上提供我們調查結果的更多細節。我們的第二階段策略計畫是最令人興奮的，我們希望它能夠讓市場對我們的員工和我們的股東，對第一基業的中長期策略願景充滿信心，坦白說，我們將採取謹慎的投資攻勢，以抓住未來的市場機會。

Before going into detail, it is important to note that the prolonged due diligence and capital raise discussions led by Fortress and Canyon also allowed for a thoughtful and strategic collaboration in which management, the legacy Board and our investors were all steeped.

在詳細介紹之前，需要注意的是，由 Fortress 和 Canyon 主導的長期盡職調查和融資討論也促成了管理層、遺留董事會和我們的投資者都參與其中的深思熟慮的戰略合作。

It is a proud result of active and ongoing planning that began as far back as the beginning of the second quarter of 2024. As you know, First Foundation currently has a wide geographical presence spanning from Florida to Texas to Nevada and California and all the way to Hawaii.

這是早在 2024 年第二季初就開始積極持續規劃的令人自豪的結果。如您所知，第一基金會目前擁有廣泛的地理分佈，從佛羅裡達州到德克薩斯州，再到內華達州和加利福尼亞州，一直到夏威夷。

Collectively, we believe there is tremendous untapped potential in these geographies we currently serve, given that we have a physical presence in these locations and the mature infrastructure in our C&I lending business. The strategic vision anticipates the further diversification of the underlying loan portfolio. This diversification into C&I lending, which leverages the existing C&I infrastructure and enterprise will improve core funding, further reduce multi-family commercial real estate concentrations, increase loan yields and bolster deposit growth with a heavy focus on offering our platform to relationships and not transactions.

總的來說，我們相信我們目前服務的這些地區存在巨大的未開發潛力，因為我們在這些地區擁有實體業務，並且我們的工商業貸款業務擁有成熟的基礎設施。戰略願景預計基礎貸款組合將進一步多元化。這種利用現有工商業基礎設施和企業的工商業貸款多元化將改善核心融資，進一步減少多戶商業房地產集中度，提高貸款收益率並促進存款成長，重點是為關係而非交易提供我們的平台。

New bankers in these markets will have loan goals and deposit goals. So they will be properly incentivized to focus on relationships, which are at least partially self-funding as core deposits grow. We will, of course, want to focus on the concentrations in the underlying deposit portfolio as much as we do the loan portfolio. This will mean a reduced reliance on noncore funding and wholesale funding as well as a reduction in high-cost deposits goals.

這些市場的新銀行家將有貸款目標和存款目標。因此，他們將受到適當的激勵，專注於關係，隨著核心存款的增長，這些關係至少部分是自籌資金的。當然，我們希望像關注貸款組合一樣關注基礎存款組合的集中度。這將意味著減少對非核心融資和批發融資的依賴，以及降低高成本存款目標。

You have heard us speak about strategically for several quarters now while we have made strides towards these objectives. We are far from satisfied that we have maximized these improvements. The proposed balance sheet changes should limit exposure to high-cost deposits, and the enhancement to profitability will only be further bolstered by the tailwinds of rate cuts whenever they do come.

您已經聽到我們在幾個季度中談論策略，而我們已經在實現這些目標方面取得了長足的進步。我們對最大限度地提高這些改進還遠遠不滿意。擬議的資產負債表變動應該會限制高成本存款的曝險，而一旦降息到來，獲利能力的提高只會進一步受到降息的推動。

With that, I will turn it back over to Scott to now cover wealth advisory trust services and address some of the changes in the Board structure.

這樣，我將把它轉回斯科特，現在負責財富諮詢信託服務並解決董事會結構的一些變化。

Thanks, Chris. First, sorry that the script is taking longer than normal, but we frankly believe that the emphasis of this call needs to be on the capital raise. So sorry, please bear with us. We hope that all the strategic direction detail provided by Jamie and Chris and summarized in the provided investor presentation gives everyone some insight in how the transformative we believe this capital has already been and is going to be. The benefits will also in order to the wealth advisory platform, First Foundation Advisors. As a logical natural byproduct of the steps we have detailed for the bank, you can anticipate accelerated FFA growth and further increases in fee income.

謝謝，克里斯。首先，很抱歉腳本花費的時間比正常情況要長，但我們坦白認為，這次電話會議的重點需要放在融資上。非常抱歉，請耐心等待。我們希望 Jamie 和 Chris 提供的所有策略方向細節以及投資者簡報中總結的所有策略方向細節能讓每個人深入了解我們認為這筆資本已經和將會如何帶來變革。這些好處也將惠及財富諮詢平台 First Foundation Advisors。作為我們為銀行詳細介紹的步驟的一個合乎邏輯的自然副產品，您可以預見 FFA 的加速增長和費用收入的進一步增加。

While FFA has continued to hit its growth milestones over the course of the last 2 years, management believes that First Foundation's expansion deeper into the existing markets will only benefit FFA as these markets with significant high note worth household concentrations and attractive in-migration demographics.

雖然FFA 在過去兩年中不斷達到其成長里程碑，但管理層認為，First Foundation 深入現有市場的擴張只會使FFA 受益，因為這些市場具有顯著的高價值家庭集中度和有吸引力的移民人口結構。

It should also be noted that having a wealth advisory arm is a very valuable thing for the bank and serves to make relationships stickier and longer lasting across the First Foundation platform. Speaking of which, the bank's trust division will continue to grow and season in these markets as bankers and wealth advisers identify the need for their services and the growth of the client-based compounds.

還應該指出的是，擁有財富諮詢部門對銀行來說是一件非常有價值的事情，有助於使第一基金會平台上的關係更加黏稠、更持久。說到這裡，隨著銀行家和財富顧問確定其服務的需求以及基於客戶的化合物的增長，該銀行的信託部門將在這些市場中繼續發展和壯大。

I am proud that the enterprise value of this franchise has been and will continue to be our ability to provide an unparalleled value proposition of service, service that comes from the talent and abilities of our team so that we can capture and grow with our target demographic as they age and even as they relocate through chapters of their lives.

我感到自豪的是，該特許經營權的企業價值一直並將繼續是我們提供無與倫比的服務價值主張的能力，這些服務來自我們團隊的才能和能力，以便我們能夠抓住目標人群並與他們一起成長隨著他們年齡的增長，甚至當他們在人生的各個章節中重新定位時。

I am incredibly proud of what we built at First Foundation over the course of the last 17 years. Much like our clients, we have evolved and have grown into the next chapter of the company's life. With growth comes change, and it is with a heavy heart and a tremendous amount of gratitude that I think some of our departing legacy Board members for their tenure and commitment to helping us build First Foundation into what it is today.

我對我們在過去 17 年在 First Foundation 所建立的一切感到無比自豪。就像我們的客戶一樣，我們已經發展並成長為公司生命的下一個篇章。成長伴隨著變化，我懷著沉重的心情和巨大的感激之情想到我們一些即將離任的傳統董事會成員的任期和承諾，幫助我們將第一基金會建設成今天的樣子。

At the same time, I'm grateful for the gift of fresh eyes and perspectives from our incoming cohort of directors, who I can tell you are already aligned with our culture. Together, management and I know that we have found the right partners with this capital raise, and we are thankful for their commitment to preserving our enterprise value and honoring the legacy of First Foundation.

同時，我很感激我們即將上任的董事們所提供的新鮮視角和觀點，我可以告訴你們，他們已經與我們的文化保持一致。我和管理層共同知道，我們透過此次融資找到了合適的合作夥伴，我們感謝他們致力於維護我們的企業價值並尊重 First Foundation 的遺產。

Lastly, I cannot thank our team of employees enough. The tellers on the front lines of challenging discussions during volatile times in the stock market, the managers who concerned customers calling to hear the First Foundation was strong. The management team, and I want you to know that this capital raise and the resulting strategic plan will position us all to be on the offense again. And I want you all to know that we appreciate your commitment.

最後，我對我們的員工團隊感激不盡。在股市動盪時期，站在第一線進行富有挑戰性的討論的出納員、關心客戶打電話聽取第一基金會意見的經理們都很堅強。管理團隊，我想讓你們知道，這次融資和由此產生的戰略計劃將使我們所有人再次進攻。我希望你們都知道，我們感謝你們的承諾。

Thank you for being a part of our team. Thank you for trusting us and to execute and deliver a stronger bank. And now I will turn the call back to the operator for questions.

感謝您成為我們團隊的一員。感謝您信任我們並執行和打造更強大的銀行。現在我將把電話轉回給接線員詢問問題。

We will now begin the question and answer session. If you'd like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again.

我們現在開始問答環節。如果您想提問，請按下電話鍵盤上的星號一舉手並加入隊列。如果您想撤回問題，只需再次按星號一即可。

Your first question comes from the line of David Feaster from Raymond James.

你的第一個問題來自雷蒙德詹姆斯 (Raymond James) 的大衛菲斯特 (David Feaster)。

You guys gave a lot of color, and it was great. But just kind of touching on the potential for optimization of the balance sheet. Just kind of reading between the lines, it sounds like securitization could be a near-term opportunity, just especially just given your experience, your track record. Could you just help think about -- I mean, given the prior securitizations in the $400 million to $500 million realm, would you expect a couple tranches? Or do you think you could do a larger transaction? And just, I guess, as you've tested the market and kind of curious your sense of appetite for it and what the secondary markets like right now?

你們給了很多色彩，非常棒。但這只是觸及優化資產負債表的潛力。從字裡行間看，聽起來證券化可能是一個近期的機會，尤其是考慮到你的經驗和業績記錄。您能否幫忙想想——我的意思是，鑑於之前的證券化規模在 4 億至 5 億美元之間，您是否會期望分幾批？或者您認為您可以進行更大的交易嗎？我想，當您測試過市場並有點好奇您對它的興趣以及二級市場現在喜歡什麼？

It's always a pleasure. It's Chris. So I think the maximum they generally allow at Freddie would typically be up to $500 million. We've obviously done a little bit more than that historically, but I would expect that we would aim for something that size.

這總是一種樂趣。是克里斯。因此，我認為房地美通常允許的最高限額通常可達 5 億美元。顯然，我們所做的事情比歷史上的要多一些，但我希望我們的目標是達到這樣的規模。

Again, this is somewhat speculative in that there would have to be pricing and some initial conversations and work that goes into it. But typically speaking, that would always aim for the max. And the reason why is there's efficiencies of time and usage.

同樣，這在某種程度上是推測性的，因為必須進行定價以及一些初步的對話和工作。但通常來說，這總是以最大化為目標。原因是時間和使用效率高。

So you want to do as much as you can as GPs associated with the transaction. So we would aim for about $0.5 billion is my target. And then private party sales and anything else we would explore as an opportunity presents itself.

因此，您希望作為與交易相關的 GP 盡您所能。因此，我的目標是大約 5 億美元。然後私人聚會銷售和其他我們將探索的機會作為機會出現。

Yes. I had some pretty good inquiries out to other financial institutions as well as possibly the Freddie Mac outlet. We've also had some recent reverse inquiries. So I'm pretty confident amongst everything that we will really test the marketplace and determine the best execution route.

是的。我向其他金融機構以及可能還有房地美商店進行了一些很好的詢問。我們最近也收到了一些反向詢問。因此，我非常有信心，我們將真正測試市場並確定最佳執行路線。

And I'm curious how you think about the size of the balance sheet, right? I mean we've used some excess liquidity this quarter to buy some securities. We've got the securitization to potentially free up some excess liquidity. I guess, would your priorities be -- you obviously got some loan growth coming. And I'm just curious, would your priorities be to de-lever the balance sheet and shrink and reduce wholesale funding? Or maybe help drive some of the C&I remix more quickly?

我很好奇你如何看待資產負債表的規模，對嗎？我的意思是，我們本季使用了一些過剩的流動性來購買一些證券。我們的證券化可能會釋放一些過剩的流動性。我想，你的首要任務是——顯然你會得到一些貸款成長。我只是好奇，你們的首要任務是去槓桿化資產負債表並縮減和減少批發融資嗎？或者也許可以幫助更快地推動一些 C&I 混音？

David, this is Jamie. Absolutely the first thing that we would do with any transactions on the multifamily would be to focus on the wholesale funding on the right-hand side of the balance sheet that potentially some higher cost core deposits.

大衛，這是傑米。對於多戶住宅的任何交易，我們要做的第一件事絕對是專注於資產負債表右側的批發融資，這些融資可能存在一些成本較高的核心存款。

But the lean would be towards wholesale funding. We have an excess there in our opinion. And some of it, a majority of it on the deposit side is in brokered CDs with different maturity links. We would focus on exiting the wholesale funding first. I think over time, as we move forward, we do want to make sure the earning asset base continues to support the investments we want to make. We don't want to be in the business anymore of low earnings. We want to see growth from here.

但這種傾向將傾向於批發融資。我們認為那裡有多餘的東西。其中一些，大部分在存款方面是具有不同期限連結的經紀CD。我們將首先關注退出批發融資。我認為隨著時間的推移，隨著我們的前進，我們確實希望確保獲利資產基礎繼續支持我們想要進行的投資。我們不想再從事低收入行業了。我們希望看到這裡的成長。

So, we will look to keep earning assets in cash or high-quality liquid securities to support the investments we want to make. And as we get more into it, I think we'll have a better understanding of the timing as we start to talk with different lenders and teams in the markets, identifying when it may be possible to bring people in. We'll balance that in those expenses and those investments with our decisions on the size of the balance sheet and whether we need anything outside of loans to support the investments that we want to make.

因此，我們將尋求繼續以現金或高品質流動證券賺取資產，以支持我們想要進行的投資。隨著我們深入研究，我認為當我們開始與市場上不同的貸方和團隊交談時，我們將對時機有更好的了解，確定何時可以引入人員。我們將在這些支出和投資中與我們對資產負債表規模的決定以及我們是否需要貸款以外的任何東西來支持我們想要進行的投資進行平衡。

And to that point, I mean, it seems like a lot of the focus is in Florida and Texas because as Chris talked about the untapped potential in some of the newer geographies, could you maybe elaborate a bit on what you're expecting to do? And it sounds like we're going to -- we're looking for some new hires, are there any new markets that you're focused on? I'm just kind of curious if you could just elaborate a bit on the strategy and what you guys are considering?

就這一點而言，我的意思是，似乎很多焦點都在佛羅裡達州和德克薩斯州，因為當克里斯談到一些較新地區尚未開發的潛力時，您能否詳細說明一下您期望做什麼？聽起來我們要－我們正在尋找一些新員工，你們有關注的新市場嗎？我只是有點好奇你能否詳細說明一下這個策略以及你們正在考慮什麼？

Yes. So obviously, we have our corporate headquarters located in Texas, and we have unlimited top potential in the market. There's a lot of business there that we need to really capture. Our plan as it is right now would entail growth there. It would also consider really tapping in heavily into Southwestern Florida markets where we have geographic presence. But one of the things I can tell you that we haven't done is allocated people on the front lines to originate business. Obviously, the last 2 years were really a defensive focus as the narrative really alluded to. So getting people there that can originate relationships and focus on those franchises, I think, will help bolster significantly. But there's still potential in California as well. I don't want to minimize where we are here.

是的。顯然，我們的公司總部位於德克薩斯州，我們在市場上擁有無限的頂級潛力。那裡有很多我們需要真正抓住的業務。我們現在的計劃將帶來那裡的成長。它還會考慮真正大力進入我們擁有地理業務的佛羅裡達州西南部市場。但我可以告訴你，我們還沒有做的一件事是在第一線分配人員來開展業務。顯然，正如敘述中所暗示的那樣，過去兩年確實是防守重點。因此，我認為，讓那些能夠建立關係並專注於這些特許經營權的人將有助於顯著增強。但加州也仍然有潛力。我不想最小化我們現在的位置。

Northern California, Southern California, in particular, has a pretty growing expansion. The interesting thing from a dynamic perspective is we see a lot of people from a relationship position leaves the state of California and go into the states that are typically tax shelters like Texas and Florida. And because of that, we've been able to follow them there, that's a great entry point into introductions and additional business there. So we have a very warm handoff in those 2 states, and it makes the most logical sense for growth in the immediate future.

尤其是北加州，尤其是南加州，擴張速度相當快。從動態的角度來看，有趣的是，我們看到許多有戀愛關係的人離開加州，進入德州和佛羅裡達州等典型的避稅州。正因為如此，我們能夠在那裡跟踪他們，這是在那裡介紹和其他業務的一個很好的切入點。因此，我們在這兩個州之間進行了非常熱烈的交接，這對於近期的成長來說是最合乎邏輯的。

The only thing I would add, David, is we expanded into Texas. We expanded into Florida and then COVID and of course, the challenging economic times started to happen. So we really have not had much of a chance to really expand into the markets. We immediately found ourselves having to get into a defensive mode. So Chris alluded to, we still see huge opportunity in the California marketplace.

大衛，我唯一要補充的是我們擴展到德州。我們擴展到佛羅裡達州，然後是新冠疫情，當然，充滿挑戰的經濟時期開始發生。所以我們確實沒有太多機會真正擴展到市場。我們立即發現自己必須進入防禦模式。克里斯提到，我們仍然在加州市場看到了巨大的機會。

But we really believe that Texas and Florida is endless with its abilities to be able to grow. In terms of your question about other markets, we got a lot to focus on just with those markets. So right now, I don't see us really expanding into any other markets than the markets we already serve.

但我們確實相信德州和佛羅裡達州的發展能力是無窮無盡的。關於您關於其他市場的問題，我們有很多需要關注的只是這些市場。因此，目前，除了我們已經服務的市場之外，我認為我們並沒有真正擴展到任何其他市場。

And just one quick follow-up. I appreciate the profitability targets. I was curious, do you have a time line to achieving those or getting -- approaching those? Obviously, somewhat dependent on the ability to execute on the securitization and selling some of the multifamily ones.

只需一個快速跟進。我很欣賞獲利目標。我很好奇，你有實現這些目標或接近這些目標的時間表嗎？顯然，這在一定程度上取決於執行證券化和出售一些多戶住宅的能力。

I think we were targeting towards the end of 2026.

我認為我們的目標是 2026 年底。

That's right. Yes. I appreciate that question. And as a finance chief look forward to the next few months of planning and budget season, we'll be getting into the market and starting to talk to more folks here in terms of the hiring we just talked through. We're going to take the high-level plans and really do a bottoms-up budget process, which I think will help provide some timing on the trajectory and the trajectory for profitability improvements.

這是正確的。是的。我很欣賞這個問題。作為一名財務主管，期待著接下來幾個月的計劃和預算季節，我們將進入市場，並開始與這裡的更多人討論我們剛剛討論過的招聘問題。我們將採取高層計劃並真正執行自下而上的預算流程，我認為這將有助於為盈利能力改善的軌跡和軌跡提供一些時機。

But like you said, I mean, a lot of it on the restructuring of the balance sheet and the improvements that come from that will depend on the work we do on the multifamily loans that we moved to held for sale and how quickly we can arrive at best execution and prices we're comfortable with there.

但就像你說的，我的意思是，資產負債表的重組以及由此帶來的改善在很大程度上取決於我們對多戶家庭貸款所做的工作以及我們能夠多快到達我們對那裡的最佳執行和價格感到滿意。

So probably a bit too soon to start talking through definitive trajectories on the profitability side. But we do feel comfortable with the goals we laid out for exiting '26 and where we want to be long term with regard to our multifamily concentration and CRE concentration overall and where and profitability and profitability and where we want to hold capital longer term.

因此，現在開始談論獲利能力方面的明確軌跡可能還為時過早。但我們確實對我們為退出 26 年制定的目標感到滿意，我們希望長期關注我們的多戶住宅集中度和商業房地產集中度，以及我們希望長期持有資本的盈利能力和盈利能力。

And profitability.

和盈利能力。

And profitability and where we want to hold capital longer term.

獲利能力以及我們希望長期持有資本的地方。

Thanks, everybody, for the call, and thank you, Dan, and thank you to you.

謝謝大家的來電，謝謝你，丹，謝謝你。

Your next question comes from the line of Gary Tenner from D.A. Davidson. Your line is open.

你的下一個問題來自 D.A. 的加里·坦納 (Gary Tenner)。戴維森。您的線路已開通。

I'll just follow up on that profitability question. As you've laid it out in the deck towards the end of 2026, what would be the contemplated kind of asset size would you think at that period of time? And it seems like $12.5 billion to $13 billion doesn't seem unreasonable, but I just wanted to sanity check that.

我將繼續討論獲利能力問題。正如您在 2026 年底前提出的那樣，您認為在那段時間預計的資產規模是多少？125 億到 130 億美元似乎不是不合理，但我只是想對其進行合理性檢查。

Yes. I think you're in the ballpark there, Gary. We've gone through the initial planning process, and we came up with targets for growth and what we think is available in new markets, for instance. But we do think that there is a lot of opportunity as Chris and as Scott mentioned before.

是的。我想你已經差不多了，加里。例如，我們已經完成了最初的規劃過程，並提出了成長目標以及我們認為在新市場中可用的內容。但我們確實認為，正如克里斯和斯科特之前提到的，存在著許多機會。

And I think as we get into it, we could find that there's more than expected and perhaps the balance sheet is a little larger than what you mentioned. But I think the target that you laid out in that $12.5 billion to $13 billion is probably a good place to start at this point anyway.

我認為，當我們深入研究時，我們會發現情況超出了預期，也許資產負債表比你提到的要大一些。但我認為，無論如何，您在 125 億至 130 億美元中設定的目標可能是一個很好的起點。

And then as you talk about doing your review of your allowance methodology in the third quarter, is that something that would be more of a kind of longer-term guidepost for you? Or would you anticipate it would be sort of an immediate adjustment in the third or maybe that softens in the fourth quarter on the ACI level?

然後，當您談到在第三季度對津貼方法進行審查時，這對您來說更像是一種長期指南嗎？或者您是否預計 ACI 水準會在第三季立即調整，或者可能在第四季度有所軟化？

Well, on the auspice of full disclosure, that's one of those things that there are more ramifications. There's several different people and concern to think about. Obviously, you have the regulators' perspective on it, you have outside accountants and auditors perspective on it.

好吧，在全面披露的支持下，這是有更多影響的事情之一。有幾個不同的人和問題需要考慮。顯然，您有監管機構的觀點，也有外部會計師和審計師的觀點。

We think the risk in the market right now exists and we want to address it, and we want to address it in a timely manner, but the proper methodology will take part as part of the review. So I'm not being dodgy just to say that we're committed to getting it there, we'd like to do it as soon as reasonable and feasible, but we want to make sure we do it the right way.

我們認為目前市場存在風險，我們希望解決它，我們希望及時解決它，但適當的方法將作為審查的一部分。因此，我並不是狡猾地說，我們致力於實現這一目標，我們希望在合理且可行的情況下盡快做到這一點，但我們希望確保我們以正確的方式做到這一點。

We expect it to be way that this quarter, though, Gary, to be firm on that.

不過，加里，我們預計本季會堅定這一點。

Okay. Jamie, in terms of your comments on the MSR deposits and the customer service costs, could you give us the average of those deposits that impacted the customer service line in the second quarter?

好的。Jamie，關於您對 MSR 存款和客戶服務成本的評論，您能否告訴我們第二季影響客戶服務線的存款的平均值？

The total for customer service deposits, and this is MSR escrow balances as well as others, like 1031 exchange was -- the average was close to 1.2 for the second quarter.

客戶服務存款總額，包括 MSR 託管餘額以及其他帳戶（如 1031 交易所）——第二季的平均值接近 1.2。

And then if I could, just one last question. Simone, you kind of having a couple of weeks under your belt at First Foundation. Just kind of would love to hear your updated thoughts perhaps in terms of the opportunities and kind of how you see the bank situated here.

如果可以的話，我想問最後一個問題。西蒙娜，你在第一基金會已經待了幾週了。只是很想聽聽您的最新想法，也許是關於機會以及您如何看待這裡的銀行的想法。

Thank you, Gary. Yes, I am on. And so thank you for the question. Yes, this is end of my third week or coming close to the end of my third week and it is really a privilege to work with Scott. I've known him for many years and also with Jamie and Chris and to work with them and our legacy Board and the new investors in developing a plan and focusing on how we reposition the organization. A lot of the details of which were discussed earlier. So I'm excited about the future. And thank you for the question. That's about as much as I'll go into because I think a lot of detail was covered earlier in the call about how our focus on repositioning and moving forward.

謝謝你，加里。是的，我在。謝謝你的提問。是的，這是我的第三週結束或即將結束，與斯科特一起工作真的很榮幸。我認識他很多年了，也認識傑米和克里斯，並與他們、我們的舊董事會和新投資者一起制定計劃並專注於我們如何重新定位組織。前面已經討論過很多細節。所以我對未來感到興奮。謝謝你的提問。這就是我要討論的內容，因為我認為在電話會議的早些時候已經討論了很多關於我們如何專注於重新定位和前進的細節。

Your next question comes from the line of Andrew Terrell from Stephens. Your line is open.

您的下一個問題來自史蒂芬斯的安德魯·特雷爾（Andrew Terrell）。您的線路已開通。

I just wanted to ask on the profitability targets, the 90 basis points to 100 basis point, 4Q '26 ROA, as you kind of compare that pre and post capital raise, what you -- what could you have gotten to organically without the capital raise by 4Q '26?

我只是想問一下獲利目標，90 個基點到 100 個基點，26 年第 4 季的 ROA，當你比較融資前後的情況時，如果沒有資本，你能有機地實現什麼26 年第4 季之前籌集資金？

t'd be much more muted. I don't know we have to go back to old forecast and try to figure it out. But I would say it would probably be cut in half.

會更加沉默。我不知道我們必須回到舊的預測並嘗試找出答案。但我想說它可能會減半。

Yes. Okay. And then my only other one, I've gotten a lot of questions from investors this morning around under Phase 1 of the near-term actions, the piece setting goals and aligning incentives through the organization, could you maybe expand a little bit on what you mean by this? And the specific question would be, what are the kind of set management payouts as you hit certain parts of the Phase 2 actions?

是的。好的。然後是我唯一的另一個問題，今天早上我收到了投資者關於近期行動第一階段的許多問題，即透過組織設定目標和調整激勵措施，您能否詳細說明一下什麼？嗎？具體的問題是，當你完成第二階段行動的某些部分時，設定的管理支出是多少？

So this is Chris. We were thinking really with the context that it would be more driven down to the bottom line. One of the things incentive-wise, in financial, frankly, compensation-wise, is you want to have people who are equally motivated to bring in deposits as well as loans.

這就是克里斯。我們在考慮實際情況時會更加重視底線。在激勵方面，坦白說，在薪酬方面，在財務方面，你希望人們有同樣的積極性吸收存款和貸款。

And you want to have them driven in line with the bank's ultimate success and profitability according to its strategic plan. That being said, with the very clear strategic plan that we are putting in place, obviously, with the new incoming cohort of Board members and a very clear vision of where we want to be, we want to make sure that the compensation down to the front line is equally as clear and drive those results.

您希望根據銀行的策略計劃，讓它們與銀行的最終成功和獲利能力保持一致。話雖這麼說，顯然，我們正在製定非常明確的戰略計劃，隨著新加入的董事會成員的加入，以及對我們想要達到的目標有非常清晰的願景，我們希望確保薪酬降至前線同樣清晰並推動這些結果。

And frankly, people will do what you compensate them appropriately to do, and that's what we want to maintain, if that makes sense.

坦白說，人們會做你給予他們適當補償的事情，這就是我們想要維持的，如果這有意義的話。

Your next question comes from the line of Matthew Clark from Piper Sandler. Your line is open.

你的下一個問題來自 Piper Sandler 的 Matthew Clark。您的線路已開通。

Good morning everyone. Just wanted to ask about the kind of share count going forward, should we assume the share count is fully loaded with the warrants now that they're in the money and knowing that your GAAP numbers are likely going to differ from non-GAAP assuming you show growth ahead of the shareholder vote. But is that a fair assumption, assuming you'll show both going forward?

大家早安。只是想問一下未來的股票數量，我們是否應該假設股票數量已滿載認股權證，因為它們是實值的，並且知道您的 GAAP 數字可能會與非 GAAP 數字不同（假設您）在股東投票之前顯示增長。但這是一個公平的假設嗎？

Matthew, this is Jamie. We absolutely will. We're still getting everything ticked and tied in the books. There is net settlement on the warrants. So that will come into play as the stock price moves. But we will be extra clear on share counts.

馬修，這是傑米。我們絕對會的。我們還在把所有的事情都記在帳本上。認股權證採淨額結算。因此，隨著股價的變動，這將發揮作用。但我們會更加明確股份數量。

And I think we want to take some time to make sure we're clearly providing trajectories on EPS, on ROTCE, both on an actual but also on a fully diluted basis. As you know, the timing will shift there as the different types of preferred and the nonvoting common equivalents, if those were to come into play, move from the existing investors to other investors.

我認為我們需要花一些時間來確保我們清楚地提供 EPS 和 ROTCE 的軌跡，無論是在實際的基礎上還是在完全稀釋的基礎上。如您所知，時機將會發生變化，因為不同類型的優先股和無投票權的普通股（如果這些要發揮作用）將從現有投資者轉移到其他投資者。

But that will be a focus of ours. And as we get into it, we'd certainly appreciate any feedback that you'd be willing to offer so that we make sure that we are being clear and it's coming across to the investment committee and investment community and to you guys.

但這將是我們的重點。當我們進入這個問題時，我們當然會感謝您願意提供的任何回饋，以便我們確保我們的態度是明確的，並且投資委員會、投資界和您都能理解。

And then do you have a date set for the shareholder vote?

那麼股東投票的日期確定了嗎？

It's in August. I believe it's -- September, sorry. I believe the proxy statement, I believe we were finalizing yesterday should be going out fairly soon. But I think you'll probably see something pretty soon from our attorneys, but it will be held in September.

現在是八月。我相信現在是——九月，抱歉。我相信我們昨天敲定的委託書應該很快就會發布。但我想你可能很快就會從我們的律師那裡看到一些東西，但它將在九月舉行。

Yes. I can't say enough about how much support we've gotten from our team on the legal side. They're still working around the clock to get everything buttoned up and ready. As Scott mentioned, the proxy's draft is getting ready to go out. There is a period where the SEC has to review, but we'd hope to get that out to shareholders in August and then the vote and the special meeting in September.

是的。我無法形容我們的團隊在法律上獲得了多少支持。他們仍在日以繼夜地工作，把一切都搞定並準備好。正如斯科特所提到的，代理草案正在準備發布。SEC 必須在一段時間內進行審查，但我們希望在 8 月向股東通報，然後在 9 月進行投票和特別會議。

A shout out to Josh Dean at Sheppard Mullin.

向 Sheppard Mullin 的 Josh Dean 致敬。

Great. And then on your customer service cost outlook, what are you assuming for 4Q just based on the seasonality and the number of rate cuts might be assuming there as well?

偉大的。然後，關於您的客戶服務成本前景，您根據季節性和可能的​​降息次數對第四季度的假設是什麼？

Yes. That's the big question is the rate cuts. The four curve is showing a couple at this point. We saw some big names come out in the last few days that are arguing for the Fed to get on with it and maybe even consider one next week.

是的。最大的問題是降息。此時，四條曲線顯示一對。過去幾天我們看到一些大人物站出來主張聯準會繼續實施這項政策，甚至可能考慮下週進行。

So I think there's still some uncertainty there. I don't want to provide you with a target at this point. But a couple of things to think about is the trajectory as we've come into the second has -- it has gone up until the rates grown as we expected.

所以我認為仍然存在一些不確定性。我現在不想給你目標。但需要考慮的一些事情是我們進入第二階段的軌跡——它一直在上升，直到利率按照我們的預期增長。

As I mentioned in my comments, we would expect some more growth in the third. And we'd expect to see normal seasonal declines in the fourth and then again in the first. And those declines should be consistent with what we've seen in the past but maybe a little lower on a percentage basis than what we saw in the end of 2023 just because, as I think we mentioned maybe on the January call or on the April call, we did have one client that had assessed their concentrations of their banks and they decided to pull out a little more than they normally would have, which as I mentioned, we appreciate it.

正如我在評論中提到的，我們預計第三季會有更多成長。我們預計第四季會出現正常的季節性下降，然後第一季會再次出現季節性下降。這些下降應該與我們過去看到的情況一致，但按百分比計算可能會比我們在2023 年底看到的下降一些，因為正如我認為我們可能在1 月份的電話會議或4 月份的電話會議上提到的那樣我們確實有一位客戶評估了他們對銀行的集中度，他們決定比平時多提取一點，正如我提到的，我們對此表示讚賞。

And then there is another client during the fourth quarter that was going through their risk review and decided to take out imbalances while that process is going on. So there were a couple of those items in the fourth of 2023 that may have exacerbated the runoff that we've seen historically. But for Q4 '24, I expect it to return to normal historical trends.

然後，第四季度有另一個客戶正在進行風險審查，並決定在該過程進行期間消除不平衡。因此，2023 年第四季的一些項目可能加劇了我們歷史上看到的徑流。但對於 24 年第四季度，我預計它將恢復到正常的歷史趨勢。

And then just on the margin, you have the average margin in June and the spot rate on deposits at the end of June.

然後就保證金而言，您可以看到 6 月的平均保證金和 6 月底的存款即期利率。

Yes, just a second. For the margin, we were at 1.42 in June and the spot rate for total deposits was 4.28. Correct?

是的，請稍等。就保證金而言，6 月我們為 1.42，總存款即期匯率為 4.28。正確的？

4.28 on interest bearing.

4.28 關於利息。

Correct. Yes.

正確的。是的。

That concludes our question-and-answer session. I will now turn the call back over to CEO, Scott Kavanaugh, for some final closing remarks.

我們的問答環節到此結束。現在，我將把電話轉回給執行長 Scott Kavanaugh，讓其發表最後的結論。

We thank you for attending today's conference call. We hope it was informative. So as I said previously, we are super excited to have our new partners with the investment of $228 million of capital. We're going to continue to work with them and our newly reconstituted Board to continue to build upon the foundation of what we put in place.

我們感謝您參加今天的電話會議。我們希望它能提供有用的信息。正如我之前所說，我們非常高興能擁有投資 2.28 億美元的新合作夥伴。我們將繼續與他們和我們新重組的董事會合作，繼續在我們現有的基礎上繼續發展。

So with that, we thank you again and hope you have a great remainder of the day.

因此，我們再次感謝您，並希望您度過愉快的一天。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。