First Horizon Corp (FHN) 2024 Q1 法說會逐字稿

Welcome to the First Horizon First Quarter 2024 Earnings Conference Call. My name is Carla and I'll be coordinating your call today. (Operator Instructions) I will now hand you over to your host, Natalie Flanders, Head of Investor Relations, to begin. Natalie, please go ahead.

歡迎參加 First Horizo​​n 2024 年第一季財報電話會議。我叫卡拉，今天我將協調您的電話。 （操作員指示）我現在將把您交給東道主投資者關係主管娜塔莉·弗蘭德斯（Natalie Flanders）開始。娜塔莉，請繼續。

Thank you, Carla. Good morning. Welcome to our first quarter 2024 results conference call. Thank you for joining us. Today, our Chairman, President and CEO, Bryan Jordan; and Chief Financial Officer, Hope Dmuchowski, will provide prepared remarks, and then we'll be happy to take your questions. We're also pleased to have our Chief Credit Officer, Susan Springfield, here to assist with questions as well. Our remarks today will reference our earnings presentation which is available on our website at ir.firsthorizon.com.

謝謝你，卡拉。早安.歡迎參加我們的 2024 年第一季業績電話會議。感謝您加入我們。今天，我們的董事長、總裁兼執行長 Bryan Jordan；財務長 Hope Dmuchowski 將提供準備好的發言，然後我們將很樂意回答您的問題。我們也很高興我們的首席信貸官 Susan Springfield 也能在這裡幫助解答問題。我們今天的言論將參考我們的收益報告，該報告可在我們的網站 ir.firsthorizo​​n.com 上取得。

As always, I need to remind you that we will make forward-looking statements that are subject to risks and uncertainties, and therefore, we ask you to review the factors that may cause our results to differ from our expectations on Page 2 of our presentation and in our SEC filings. Additionally, please be aware that our comments will refer to adjusted results, which exclude the impact of notable items. These are non-GAAP measures, so it's important for you to review the GAAP information in our earnings release and on Page 3 of our presentation. And last but not least, our comments reflect our current views, and you should understand that we are not obligated to update them. And with that, I'll turn things over to Bryan.

像往常一樣，我需要提醒您，我們將做出前瞻性陳述，這些陳述存在風險和不確定性，因此，我們要求您審查可能導致我們的結果與我們簡報第 2 頁上的預期不同的因素以及我們向SEC 提交的文件中。此外，請注意，我們的評論將涉及調整後的結果，其中排除了值得注意的項目的影響。這些是非 GAAP 衡量標準，因此您務必查看我們的收益報告和簡報第 3 頁中的 GAAP 資訊。最後但並非最不重要的一點是，我們的評論反映了我們當前的觀點，您應該理解我們沒有義務更新它們。有了這個，我會把事情交給布萊恩。

Thank you, Natalie. Good morning, everyone, and thank you for joining our call. The first quarter of 2024 was another strong quarter for First Horizon, demonstrating our ability to produce consistent returns for our shareholders. We grew revenue both through expanding our margin and improvement in our countercyclical businesses while simultaneously reducing expenses and maintaining strong credit performance.

謝謝你，娜塔莉。大家早安，感謝您加入我們的通話。 2024 年第一季是 First Horizo​​n 的又一個強勁季度，展示了我們為股東創造持續回報的能力。我們透過擴大利潤率和改善反週期業務來增加收入，同時減少開支並維持強勁的信用表現。

In March, we celebrated our 160th year in business and took the opportunity to celebrate the strength and resiliency of our company, which has been driven by a dedicated and talented associate base. In honor of our 160th anniversary, we recently announced our Grants for Good campaign, which will award $1.6 million in grants to nonprofit organizations within our 12-state footprint. We believe that the communities where we do business are the foundation of First Horizon's long record of success. And we are proud to continue to support the client and communities in our market.

3 月份，我們慶祝了公司成立 160 週年，並藉此機會慶祝我們公司的實力和彈性，這是由一群敬業且才華橫溢的員工推動的。為了紀念我們成立 160 週年，我們最近宣布了「Grants for Good」活動，該活動將向我們覆蓋 12 個州的非營利組織提供 160 萬美元的贈款。我們相信，我們開展業務的社區是 First Horizo​​n 長期成功的基礎。我們很自豪能夠繼續支持我們市場上的客戶和社區。

On slide 5, we have shared some of the financial highlights for the quarter. We delivered adjusted EPS of $0.35 per share, up 9% from the prior quarter with pre-provision net revenue of $25 million. Adjusted return on tangible common equity improved to 11.6%, driven by positive operating leverage as well as the benefit of returning excess capital to shareholders. Our improved returns resulted from our ability to drive higher revenue in both our core banking franchise and our countercyclical businesses. We grew the net interest margin 10 basis points from the fourth quarter from improved pricing on both loans and deposits, driving a $7 million increase in net interest income.

在投影片 5 中，我們分享了本季的一些財務亮點。我們的調整後每股收益為 0.35 美元，比上一季成長 9%，撥備前淨收入為 2,500 萬美元。受正營運槓桿以及向股東返還超額資本的好處的推動，調整後有形普通股股本回報率提高至 11.6%。我們的回報率提高是因為我們有能力在核心銀行業務和反週期業務中推動更高的收入。由於貸款和存款定價的改善，我們的淨利差較第四季度提高了 10 個基點，帶動淨利息收入增加 700 萬美元。

FHN Financial had a stronger quarter as well with a $15 million increase in fixed income fees. In January, our Board approved a $650 million share repurchase authorization. We began to return capital to shareholders this quarter, repurchasing over $150 million of stock ending the quarter with a common equity Tier 1 ratio of 11.3%. We will continue to opportunistically deploy capital above our 11% near-term target. As I look forward to the rest of 2024, I remain incredibly optimistic that First Horizon will continue to deliver strong results quarter after quarter while serving our customers and communities just as we have over the past 160 years. We have an attractive footprint, a competitive product set and a strong credit culture that will allow us to profitably navigate the ever-changing economic outlook of the upcoming year. With that, I'll hand the call over to Hope to run through our financial results in more detail. Hope?

FHN Financial 的季度表現也更為強勁，固定收益費用增加了 1,500 萬美元。一月份，我們的董事會批准了 6.5 億美元的股票回購授權。本季我們開始向股東返還資本，在本季末回購了價值超過 1.5 億美元的股票，一級普通股比率為 11.3%。我們將繼續機會主義地配置資本以高於我們 11% 的近期目標。在展望2024 年剩餘時間時，我仍然非常樂觀地認為，First Horizo​​n 將繼續季度復一季度地交付強勁業績，同時為我們的客戶和社區提供服務，就像我們過去160 年所做的那樣。我們擁有有吸引力的足跡、有競爭力的產品組合和強大的信用文化，這將使我們能夠在來年不斷變化的經濟前景中獲利。這樣，我會將電話轉給 Hope，以便更詳細地了解我們的財務表現。希望？

Thank you, Bryan. Good morning. On Slide 6, you will find our adjusted financials and key performance metrics for the quarter. We generated pre-provision net revenue of $323 million, up $25 million from the prior quarter.

謝謝你，布萊恩。早安.在投影片 6 上，您將看到我們調整後的本季財務數據和關鍵績效指標。我們的撥備前淨收入為 3.23 億美元，比上一季增加 2,500 萬美元。

Net interest income increased $7 million from fourth quarter, driven by improvements in both deposits and loan pricing, which expanded the margin by 10 basis points. Fees excluding deferred comp, were up $13 million from last quarter, driven by higher revenues from our fixed income business, which saw a 58% increase in ADR. Expenses excluding deferred comps, were down $4 million from last quarter, driven by a significant reduction to outside services, which, as previously mentioned, were elevated in the fourth quarter. That reduction was partially offset by personnel increases for annual merit, seasonal benefits and revenue-driven incentives within our fixed income business.

由於存款和貸款定價的改善，淨利息收入較第四季度增加了 700 萬美元，利潤率擴大了 10 個基點。不包括遞延補償的費用較上季增加了 1,300 萬美元，這是由於我們固定收益業務收入增加所致，其中 ADR 增加了 58%。不包括遞延補償的費用比上季減少了 400 萬美元，原因是外部服務大幅減少，如前所述，外部服務在第四季度有所增加。這項減少被我們固定收益業務中年度績效、季節性福利和收入驅動激勵的人員增加所部分抵消。

Expenses remain a lever that we are able to pull to drive increased profitability. We continue to identify and implement operational efficiencies across our bank that will help us offset the increase in our strategic investments to drive enhanced shareholder returns. Provision expense was $50 million this quarter, resulting in a stable ACL coverage ratio of 1.4%. Our strong performance improved return on tangible common equity by 60 basis points.

費用仍然是我們能夠提高獲利能力的槓桿。我們繼續在整個銀行範圍內確定和實施營運效率，這將有助於我們抵消策略投資的增加，從而提高股東回報。本季撥備費用為 5,000 萬美元，ACL 覆蓋率穩定在 1.4%。我們強勁的業績將有形普通股回報率提高了 60 個基點。

On Slide 7, we outlined a couple of notable items in the quarter, which reduced results by $0.02 per share. First quarter notable items include: incremental expense of $10 million for the FDIC special assessment, which stemmed from revised estimates of the FDIC provided in February. We also had $5 million of restructuring expenses associated with personnel initiatives as we remain focused on finding operational efficiencies. We also noted an upcoming event in second quarter.

在幻燈片 7 中，我們概述了本季的幾個值得注意的項目，這些項目使每股業績減少了 0.02 美元。第一季值得注意的項目包括： FDIC 特別評估增加了 1000 萬美元的支出，該支出源於 2 月提供的 FDIC 修訂估計。我們還有 500 萬美元的與人事計畫相關的重組費用，因為我們仍然專注於提高營運效率。我們也注意到第二季即將舉行的活動。

On April 1, First Horizon provided notice that it will redeem all outstanding shares of the Series D preferred stock on May 1. The Series B shares were acquired during the Iberia merger of equals and do not qualify for capital treatment as the first call date was in a 5-year window. The interest rate was set to convert from a fixed coupon to a 3-month SOFR plus 4.12% in May.

4 月1 日，First Horizo​​n 發出通知，稱將於5 月1 日贖回D 系列優先股的所有已發行股票。首次贖回日期是在5年的窗口內。 5 月份，利率原定從固定息票轉換為 3 個月期 SOFR 加 4.12%。

Second quarter will include an approximately $7 million noncash charge associated with retirement of this instrument. On Slide 8, you will see that margin expanded 10 basis points from the prior quarter to 3.37%, improving NII by $7 million. First quarter benefited from a full quarter of repricing on the promotional deposits gathered in 2023, with interest-bearing deposit cost declining 9 basis points from prior quarter.

第二季將包括與該工具報廢相關的約 700 萬美元非現金費用。在投影片 8 中，您將看到利潤率比上一季擴大了 10 個基點，達到 3.37%，NII 提高了 700 萬美元。第一季受惠於 2023 年促銷存款全季重新定價，計息存款成本較上季下降 9 個基點。

Loan yields also expanded 9 basis points from the benefit of wider spreads on new and renewing loans as well as the ability to redeploy lower-yielding fixed rate cash flows. The path for deposit costs over the rest of the year will depend on when the Fed decides to cut rates as well as the level of competition we see in our markets. Meanwhile, loan yields still have room to modestly expand as fixed cash flows continue to reprice.

受益於新貸款和續貸利差擴大以及重新部署低收益固定利率現金流的能力，貸款收益率也擴大了 9 個基點。今年剩餘時間的存款成本走勢將取決於聯準會何時決定降息以及我們在市場上看到的競爭程度。同時，隨著固定現金流持續重新定價，貸款殖利率仍有小幅上升的空間。

As you can see on Slide 9, we've successfully maintained deposit balances while reducing our deposit costs. Period-end deposits are flat quarter-to-quarter with a 5 basis point reduction to the total deposit rate and a 9 basis point reduction to the interest-bearing rate paid. We continue to see strong retention on the promotional deposits repriced last quarter with about 90% retention on both the number of clients and the balances. We had a modest increase in brokered balances as contracts initiated in 2023 funded up ahead of approximately $800 million of brokered CDs maturing in the second quarter.

正如您在投影片 9 中看到的，我們成功地維持了存款餘額，同時降低了存款成本。期末存款較上月持平，存款總利率下降5個基點，付息利率下降9個基點。我們繼續看到上季重新定價的促銷存款的強勁保留，客戶數量和餘額的保留率約為 90%。我們的經紀餘額略有增加，因為 2023 年啟動的合約在第二季約 8 億美元的經紀 CD 到期之前籌集了資金。

Though we continue to see some rotation out of noninterest-bearing in January, balances were relatively flat since February. We have an overview of our diversified loan portfolio on Slide 10. Period-end loans were up 1% from the prior quarter. Loans to mortgage companies are up 17% or $343 million at period end. So average balances were down slightly due to typical seasonality in the business. CRE loans are up $210 million driven by fund-ups primarily in multi-family. We added some additional free detail in the appendix this quarter, including a geographical breakdown that illustrates the granularity and attractive footprint of the portfolio.

儘管我們繼續看到 1 月無息貸款出現一些輪換，但自 2 月以來餘額相對持平。我們在投影片 10 上概述了我們多元化的貸款組合。期末抵押貸款公司的貸款成長了 17%，即 3.43 億美元。因此，由於業務的典型季節性，平均餘額略有下降。 CRE 貸款增加了 2.1 億美元，主要是由於多戶家庭的資金增加所致。本季度我們在附錄中添加了一些額外的免費詳細信息，包括說明投資組合的粒度和有吸引力的足跡的地理細分。

Loan yields are up 9 basis points, continuing to benefit from wider spreads on new and renewing loans as well as continued repricing of fixed rate cash flows. Spreads on new loans increased 46 basis points year-over-year. Fixed rate cash flows should continue to be a tailwind as we have $4 billion of cash flows coming back over the next year with a roll-up yield of approximately 4.4%.

貸款收益率上升 9 個基點，繼續受益於新貸款和續貸利差擴大以及固定利率現金流的持續重新定價。新貸款利差較去年增加 46 個基點。固定利率現金流應該會繼續成為一股推動力，因為我們明年將有 40 億美元的現金流回來，累計收益率約為 4.4%。

On Slide 11, you can see that our countercyclical businesses had a relatively strong quarter. Average daily revenue in our fixed income business increased $268,000 from fourth quarter, contributing an additional $15 million of fee income. The rebound this quarter was driven by improving liquidity conditions in the banking sector and the market's expectation that short-term rates have peaked and were likely headed lower. Though the recent inflation numbers have reduced the prospect of rate cuts, we expect business will remain solid, though not as strong as first quarter levels.

在投影片 11 上，您可以看到我們的反週期業務季度表現相對強勁。我們的固定收益業務日均收入比第四季度增加了 268,000 美元，額外貢獻了 1500 萬美元的費用收入。本季的反彈是由銀行業流動性狀況改善以及市場對短期利率已見頂並可能走低的預期所推動的。儘管最近的通膨數據降低了降息的可能性，但我們預計業務將保持穩健，儘管不如第一季水準。

Mortgage revenue also increased by $4 million primarily due to higher volumes. Service charges and fees decreased $2 million due to seasonality and overdraft fees. Card and digital banking fees rebounded $3 million as fourth quarter included a nonrecurring impact from an accounting methodology adjustment on interchange rebates. Lastly, our noninterest income declined $6 million, mostly due to lower FHLB dividends as well as a modest reduction in letter of credit and swap fees.

抵押貸款收入也增加了 400 萬美元，主要是因為交易量增加。由於季節性和透支費用，服務費和費用減少了 200 萬美元。卡片和數位銀行費用反彈了 300 萬美元，因為第四季度包括交換回扣會計方法調整的非經常性影響。最後，我們的非利息收入下降了 600 萬美元，主要是由於 FHLB 股息減少以及信用證和掉期費用的小幅減少。

Slide 12. We show that excluding deferred compensation, adjusted expenses are down $4 million. Personnel, excluding deferred comp, was up $17 million from last quarter with a couple of drivers. First, salaries and benefits were up $9 million due to our annual merit increase, which were effective January 1 and the seasonality in certain benefits lines, such as 401(k) match and unemployment compensation. Second, incentives and commissions increased $7 million, driven by incentives on the fixed income revenue growth.

投影片 12。我們發現，不包括遞延薪酬，調整後的費用減少了 400 萬美元。人員（不包括遞延薪酬）比上季度增加了 1700 萬美元，其中包括幾位司機。首先，由於我們的年度績效成長（自 1 月 1 日起生效）以及某些福利項目（例如 401(k) 匹配和失業補償）的季節性因素，工資和福利增加了 900 萬美元。其次，在固定收益收入成長激勵的推動下，激勵和佣金增加了 700 萬美元。

Offsetting these personnel increases is a significant decrease to outside services. As a reminder, our fourth quarter marketing expense was elevated for deposit and brand campaigns as well as third-party services engaged on our strategic investments. As 2024 progresses, we expect technology investment expenses to moderately increase over the year, but those costs will be offset by lower retention expenses and continuing to identify and implement operational efficiencies.

外部服務的大幅減少抵消了這些人員的增加。提醒一下，我們第四季度的行銷費用因存款和品牌活動以及參與我們策略投資的第三方服務而增加。隨著 2024 年的進展，我們預計技術投資費用將在這一年中適度增加，但這些成本將被較低的保留費用以及繼續確定和實施營運效率所抵消。

I'll cover asset quality reserves on Slide 13. Loan loss provision was $50 million this quarter, flat to prior quarter. Net charge-offs were $40 million or 27 basis points. Our largest charge-off this quarter was a $9 million C&I loan to a consumer goods company for which we were already fully reserved. We also had $12 million of partial charge-downs on 3 commercial real estate loans based on updated appraisal values. The ACL coverage ratio remained stable at 1.40%. We provided additional detail in the appendix that gives some insight into the diversification and granularity of our loan portfolio.

我將在投影片 13 上介紹資產品質準備金。淨沖銷額為 4,000 萬美元，即 27 個基點。本季我們最大的一筆沖銷是向一家消費品公司提供的 900 萬美元 C&I 貸款，我們已經為該貸款全額預留了貸款。根據更新的評估價值，我們還對 3 筆商業房地產貸款進行了 1,200 萬美元的部分減記。 ACL覆蓋率穩定在1.40%。我們在附錄中提供了更多詳細信息，讓您深入了解我們貸款組合的多元化和粒度。

We have remained disciplined in underwriting and our approach to client selection. While we have seen some additional negative grade migration in the first quarter, Overall, we continue to see stable credit performance across markets and industries. On Slide 14, you can see that we have maintained strong capital levels while successfully deploying capital to shareholders through the repurchase of almost 11 million shares, utilizing approximately $150 million of our $650 million of share repurchase authority.

我們在核保和客戶選擇方法方面始終保持嚴格的紀律。雖然我們在第一季看到了一些額外的負評級遷移，但總體而言，我們仍然看到各個市場和行業的信貸表現穩定。在幻燈片14 上，您可以看到我們保持了強勁的資本水平，同時透過回購近1,100 萬股股票，利用我們6.5 億美元的股票回購權中的約1.5 億美元，成功地將資本部署給股東。

Share repurchases drew a 9 basis point reduction in capital this quarter while CET1 remains very strong at 11.3%. Adjusting for the marks on our securities portfolio and loan book, our pro forma CET1 ratio would be 8.8%, which is well above the regulatory threshold. We will continue to opportunistically deploy capital above our 11% near-term target. First quarter tangible book value per share increased to $12.16, benefiting by $0.35 of net income, offset by $0.15 of dividend, $0.15 from higher mark-to-market impact and $0.04 of share buybacks.

股票回購導致本季資本減少 9 個基點，而 CET1 的資本仍然非常強勁，達到 11.3%。調整我們的證券投資組合和貸款帳簿上的分數，我們的備考CET1比率將為8.8%，遠高於監管門檻。我們將繼續機會主義地配置資本以高於我們 11% 的近期目標。第一季每股有形帳面價值增至 12.16 美元，受益於 0.35 美元的淨利潤，被 0.15 美元的股息、0.15 美元的較高市價影響和 0.04 美元的股票回購所抵消。

On Slide 15, we've updated our 2024 outlook slightly to reflect better-than-expected performance in our countercyclical businesses. We continue to expect our full year NII growth to fall within the 1% to 4% range that we originally outlined. We have updated our assumptions for interest rates to reflect the forward curve from March, which includes cuts in June, September and November. Though the market's expectations have continued to evolve over the last few weeks, we do not believe that it will have a material impact to our outlook. We saw strong performance from our countercyclical businesses in the first quarter with fixed income fees up $15 million and mortgages up $4 million from prior quarter. We expect these businesses to continue to perform well, which has improved our outlook for noninterest income growth from a range of 4.6% previously to an updated 6% to 10%.

在投影片 15 中，我們略微更新了 2024 年的展望，以反映我們的反週期業務的表現優於預期。我們仍然預計全年 NII 成長率將落在我們最初概述的 1% 至 4% 範圍內。我們更新了利率假設，以反映 3 月的遠期曲線，其中包括 6 月、9 月和 11 月的降息。儘管過去幾週市場預期持續變化，但我們認為這不會對我們的前景產生重大影響。第一季我們的反週期業務表現強勁，固定收益費用比上季增加了 1500 萬美元，抵押貸款費用比上季增加了 400 萬美元。我們預計這些業務將繼續表現良好，這使我們對非利息收入成長的預期從先前的 4.6% 提高到了 6% 至 10%。

The expense outlook remains unchanged. Despite increases to revenue-driven incentives in our countercyclical businesses due to the benefit of the operational efficiencies we have implemented. I will wrap up on Slide 16, which is a slide that you have all seen a few times now, but it really drives home that we are focused on a company in order to maximize shareholder value. First quarter was a great start to 2024, and I believe this is the beginning to a strong year for First Horizon.

費用前景維持不變。儘管由於我們實施的營運效率的好處，我們的反週期業務增加了收入驅動的激勵措施。我將以投影片 16 進行總結，這張投影片大家都已經看過幾次了，但它確實讓我們明白，我們專注於一家公司，以實現股東價值最大化。第一季是 2024 年的良好開端，我相信這是 First Horizo​​n 強勁一年的開始。

We expect to deliver better revenue performance than we laid out in our original guidance, while finding operational efficiencies to maintain our expense guidance. We are making tremendous progress on the strategic investments we have been talking about for almost a year now, and these initiatives will allow us to offer our clients and our associates better products, better service and improved efficiencies.

我們期望實現比最初指導中規定的更好的收入績效，同時尋找營運效率來維持我們的費用指導。我們在近一年來一直在談論的策略性投資方面正在取得巨大進展，這些舉措將使我們能夠為客戶和員工提供更好的產品、更好的服務和更高的效率。

First Horizon has a diversified business model that can provide top quartile results throughout any cycle. We are well positioned to capitalize on our 160-year legacy with our passionate and dedicated bankers, clients and communities. We will continue to demonstrate our commitment, strength and resiliency while increasing shareholder returns.

First Horizo​​n 擁有多元化的商業模式，可在任何週期提供最高四分之一的績效。我們處於有利地位，可以與充滿熱情和敬業的銀行家、客戶和社區一起充分利用我們 160 年的傳統。我們將繼續展示我們的承諾、實力和韌性，同時增加股東回報。

Now I'll give it back to Bryan.

現在我會把它還給布萊恩。

Thank you, Hope. Our first quarter results reflect the strength of our franchise and the ability to improve profitability in an extremely competitive industry. As Hope mentioned, our teams have made great progress over the last year on our strategic investments, which will allow our associates to serve our clients more quickly and efficiently. I continue to remain confident that this company has the people, the clients and the enthusiasm to build an unparalleled banking franchise in the South.

謝謝你，希望。我們第一季的業績反映了我們的特許經營實力以及在競爭極其激烈的行業中提高盈利能力的能力。正如霍普所提到的，我們的團隊在過去一年中在策略投資方面取得了巨大進展，這將使我們的員工能夠更快、更有效率地為客戶提供服務。我仍然堅信，該公司擁有人才、客戶和熱情，並能夠在南方建立無與倫比的銀行業務。

My expectation is that the next few months for the economy will look similar to the first quarter, which gives me tremendous confidence in our ability to generate strong returns for our shareholders throughout the rest of the year. Finally, I want to touch on the announcement we made on Monday that our Chief Credit Officer, Susan Springfield, has decided to retire later this year. We have named Tom Hung as her successor.

我的預期是，未來幾個月的經濟將與第一季相似，這讓我對我們在今年剩餘時間內為股東創造強勁回報的能力充滿信心。最後，我想談談我們週一發布的公告，即我們的首席信貸官蘇珊·斯普林菲爾德 (Susan Springfield) 決定在今年晚些時候退休。我們已任命湯姆·洪為她的繼任者。

Tom currently runs our franchise finance business and brings a wealth of credit and client experience to the role. We have already started the transition process with Tom serving as Deputy Chief Credit Officer as he prepares to officially step into the role on October 1. Susan will remain with the company until the end of the year to help ensure a seamless transition. Susan's decision to retire is bittersweet and she will be greatly missed.

湯姆目前負責我們的特許經營金融業務，並為該職位帶來了豐富的信貸和客戶經驗。我們已經開始了過渡流程，Tom 擔任副首席信貸官，他準備於 10 月 1 日正式上任。蘇珊退休的決定是苦樂參半的，我們將非常想念她。

She has been with the company for nearly 30 years, having served as Chief Credit Officer for 11 of those years. She led us adeptly through a number of credit cycles maintaining strong credit quality under her leadership. She has been a vital member of our Executive Management Committee as well as a mentor and role model to countless young professionals throughout her distinguished career. We are incredibly grateful for her steadfast leadership and her unwavering devotion to our team and our clients.

她在公司工作近 30 年，其中 11 年擔任首席信貸官。她熟練地帶領我們度過了多個信貸週期，並在她的領導下保持了良好的信貸品質。在她傑出的職業生涯中，她一直是我們執行管理委員會的重要成員，也是無數年輕專業人士的導師和榜樣。我們非常感謝她堅定的領導以及對我們團隊和客戶堅定不移的奉獻。

Thank you, Susan. Carla, we can now open it up for questions.

謝謝你，蘇珊。卡拉，我們現在可以開始提問了。

(Operator Instructions) Our first question comes from Ebrahim Poonawala from Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Ebrahim Poonawala。

I guess maybe just first question for Hope around NII outlook. In the past, Hope, you provided spot rates and deposit costs. Just give us, if you don't mind, if we can drill down into what the spot rate was at the end of 1Q? And how we should think about that drifting higher I'm assuming if we don't get much in terms of rate cuts for the rest of the year?

我想這可能只是 Hope 關於 NII 前景的第一個問題。過去，希望，您提供即期匯率和存款成本。如果您不介意的話，請告訴我們我們是否可以深入了解第一季末的即期匯率是多少？如果我們在今年剩餘時間裡沒有得到太多降息，我們該如何看待我假設的利率上升？

Thanks, Ebrahim. Good to hear from you this morning. Our spot rate at the end of the quarter was slightly up on interest-bearing and total deposits but on average kind of flat. Some of it is mixed, some of it's timing. So I really want to focus on what was our overall deposit costs for the quarter. Our betas went from a peak of 63% down to 60%. We continue to have momentum in retaining the balances and repricing them. We're probably at the bottom of being able to reprice the promotional deposits, and we are seeing increased competition.

謝謝，易卜拉欣。很高興今天早上收到你的來信。本季末，我們的計息存款和總存款即期利率略有上升，但平均值持平。有些是混合的，有些是時機。所以我真的很想關注我們本季的整體存款成本是多少。我們的貝塔值從 63% 的峰值下降到 60%。我們繼續有動力保留餘額並重新定價。我們可能已經無法對促銷存款重新定價，我們看到競爭加劇。

As you mentioned, the longer it takes us to get that first rate cut, the harder, I think, it's going to be to continue to drive deposit costs down meaningfully. We could be a couple of basis points here or there within a month or spot rate within a quarter. But I think we're probably close to where the deposit costs will be for the rest of the year within 1% maybe on the beta on either side. It is really hard to predict. The market is just changing so quick and competition will slow 1 month and then pick up the next week. And so it's going to be kind of a month-by-month look for the industry, I think. Bryan, you want to add something to that?

正如您所提到的，我認為，我們實現首次降息所需的時間越長，繼續大幅降低存款成本的難度就越大。我們可能會在一個月內調整幾個基點，或在一個季度內調整即期利率。但我認為我們可能已經接近今年剩餘時間的存款成本在 1% 以內的水平，也許無論是哪一方的貝塔值。這確實很難預測。市場變化如此之快，競爭將放緩一個月，然後在下週加劇。因此，我認為這個行業將是逐月審視的。布萊恩，你想添加一些內容嗎？

Go ahead, Ebrahim.

繼續吧，易卜拉欣。

Yes. No -- and I guess just taking a step back, when we look at that 1% to 4% NII guide, is it -- is the delta going to be around what gets you to 4%? Is it going to be just loan growth? Or whether or not we get any rate cuts, like what's more impactful?

是的。不——我想退後一步，當我們看看 1% 到 4% 的 NII 指南時，是不是——增量會在 4% 左右嗎？僅僅是貸款成長嗎？或者我們會得到任何降息，例如什麼更有影響力？

Yes. Ebrahim, if you get to the higher end of that guidance, we would definitely have to see less rate cuts. We have an asset-sensitive balance sheet. And so less rate cuts puts us at the higher end, more rates cut puts us at the lower end. The thing that I can't handicap right now within 1% to 2% on the full year is what are the deposit costs going to do for the rest of the year.

是的。易卜拉欣，如果你達到該指導的較高端，我們肯定會看到更少的降息。我們有一個對資產敏感的資產負債表。因此，較少的降息使我們處於高端，而較多的降息則使我們處於較低端。我現在不能將全年的影響控制在 1% 到 2% 之內，那就是今年剩餘時間的存款成本。

We had originally given guidance assuming we see a rate cut at some point in the early half of the year, and we start to see competition for deposit costs to be going down as an industry. And if we don't see any rate cuts, we don't see rate cuts till late in the year, that's where it gets a little harder for me to predict. But think about it as we'll be on the lower end with the current curve and less rate cuts is more positive for us to get to the higher end of that guidance.

我們最初給出的指導意見是假設我們會在今年上半年的某個時候降息，並且我們開始看到整個行業對存款成本的競爭正在減弱。如果我們沒有看到任何降息，那麼直到今年年底我們才會看到降息，這對我來說就更難預測了。但想想看，我們將處於當前曲線的低端，而較少的降息對於我們達到該指導的高端更為積極。

You'll remember when we laid out that guidance in the fourth quarter, we laid it out based on 4 rate cuts in 2024. And that over and under bedding seems to be we're going to market as 2 today and their question is about whether we get 2 or not. So that will dictate it. So deposit and loan pricing will both be affected by how many cuts we actually do get. As Hope pointed out, the most important aspect of managing the margin is we're not playing solitaire. We're doing this in a competitive marketplace and we've seen pricing competition increase fairly significantly. And I think you're seeing that show up in some of the earnings releases that are out there. And so we'll continue to protect our deposit base.

你會記得，當我們在第四季度製定這一指導方針時，我們是根據 2024 年的 4 次降息來製定的。 2。所以這將決定它。因此，存款和貸款定價都將受到我們實際削減的數量的影響。正如霍普所指出的，管理利潤的最重要方面是我們不是在玩紙牌遊戲。我們是在競爭激烈的市場中這樣做的，我們已經看到價格競爭相當顯著加劇。我認為您已經在一些發布的收益報告中看到了這一點。因此，我們將繼續保護我們的存款基礎。

We'll continue to protect our customer base and we'll continue to compete on a long-term basis of growing the franchise. I would say we're every bit as focused on managing both sides of the balance sheet. You saw improvement on loan spreads and you've seen improvement on deposit pricing and we think that will continue -- we just think it's sort of stabilized at this point given what's going on competitively.

我們將繼續保護我們的客戶群，並繼續在發展特許經營權的長期基礎上競爭。我想說，我們同樣專注於管理資產負債表的兩邊。你看到了貸款利差的改善，你也看到了存款定價的改善，我們認為這種情況將會持續下去——考慮到競爭的情況，我們只是認為目前它已經趨於穩定。

Our next question comes from Michael Rose from Raymond James.

我們的下一個問題來自雷蒙德詹姆斯的邁克爾羅斯。

I think in the prepared remarks, you mentioned that loan yields have the potential to move higher just as cash flows continue to mature. Can you just give us a sense for what the magnitude of that could be? And Brian, if you can just generally comment on loan demand in some of your markets at this point. Obviously, I think some areas of commercial real estate a little bit weaker, but you are seeing some fund-ups from existing commitments and just what you're seeing generally on the C&I side?

我認為您在準備好的發言中提到，隨著現金流繼續成熟，貸款收益率有可能會走高。您能否讓我們了解一下規模有多大？布萊恩（Brian），您現在可以對某些市場的貸款需求進行一般性評論嗎？顯然，我認為商業房地產的某些領域有點疲軟，但您看到現有承諾帶來了一些資金增加，以及您在商業和工業方面普遍看到的情況？

Thanks, Michael. As I mentioned in my prepared comments, we do have a fair amount of cash flow coming in that we will be able to redeploy. From a loan growth perspective, we're forecasting kind of flat to maybe slightly up. As we look at where to redeploy that mortgage warehouse is one of those that is a seasonal product for us and tends to fund up in Q2 and Q3, and it's our highest yielding assets that we have. So when we look at kind of how will the year project, you do need to look at the seasonality of that business. We continue to see on renewing business and new business, expanding margins anywhere from 150 basis point spread all the way up to 300 and some above 300 in our top businesses.

謝謝，麥可。正如我在準備好的評論中提到的，我們確實有相當數量的現金流進來，我們將能夠重新部署。從貸款成長的角度來看，我們預測會持平或略有上升。當我們考慮在哪裡重新部署抵押倉庫時，抵押倉庫對我們來說是季節性產品之一，往往會在第二季和第三季籌集資金，這是我們擁有的收益率最高的資產。因此，當我們考慮今年的計劃時，您確實需要考慮該業務的季節性。我們繼續看到續約業務和新業務的利潤率不斷擴大，從 150 個基點一直擴大到 300 個基點，在我們的頂級業務中，有些甚至超過 300 個基點。

And so when you think about our specialty businesses, they have a higher spread. When you think about regional businesses, they are slightly on the lower end of that. But feel confident that we will be able to either with slowing loan demand, that we'll be able to put this into our portfolio on the client side and be able to be there for our existing clients and bring new clients into the First Horizon franchises and expanding loan margin.

因此，當您考慮我們的專業業務時，您會發現它們的分佈範圍更大。當你考慮區域性企業時，你會發現它們的水平略低。但請相信，我們將能夠在貸款需求放緩的情況下，將其納入我們的客戶端投資組合中，並能夠為我們現有的客戶提供服務，並將新客戶引入First Horizo​​n 特許經營權並擴大貸款保證金。

Michael, I'll pick up on loan demand. Loan demand is okay. It's not great. It really is in pockets that you see real strength you have some aspects of the Carolinas where loan demand has been very good. You see other pockets where it is probably a bit softer. As you mentioned, we do have the benefit of some fund-up on some existing relationships and you started to see the pick up in seasonality in our mortgage warehouse lending business, and that's usually stronger in the second and third quarters of the year as the moving season kicks in. But overall, we're still seeing good opportunities. We're still being very selective about how and where we participate, particularly on price and structure, but we're looking for long-term growth and really those generational opportunities to move business.

邁克爾，我會處理貸款需求。貸款需求還可以。這不太好。正是在口袋裡，你才能看到真正的實力，卡羅萊納州的某些方面的貸款需求非常好。您會看到其他口袋可能會更軟一些。正如您所提到的，我們確實從一些現有關係中獲得了一些資金的好處，並且您開始看到我們的抵押倉庫貸款業務的季節性回升，並且通常在今年的第二和第三季度更為強勁，因為搬家季節開始了。我們仍然對參與的方式和地點非常有選擇性，特別是在價格和結構方面，但我們正在尋求長期成長，以及真正推動業務發展的世代機會。

But I expect that the loan demand is likely to remain somewhat more modest broadly speaking, in the economy simply because we're in that space between rates not going up anymore, and rates not coming down. And I think people are still a little bit cautious and it's going to take a little bit more certainty about when the Fed is going to move, and I think people will start to lean in. The economy is still very good in our view, relative to all that's going on in the world and how much rates have been moving up. And as you know, we benefit from being in a sector of the U.S. in the South that has a very strong general economic dynamics. So we think loan demand will be fairly soft, but it improved over the course of the year.

但我預計，從廣義上講，經濟中的貸款需求可能會保持在某種程度上較為溫和，因為我們正處於利率不再上升和利率不再下降之間的空間。我認為人們仍然有點謹慎，對於聯準會何時採取行動需要更多的確定性，我認為人們將開始採取行動。 。如您所知，我們受益於美國南部地區總體經濟活力非常強勁的地區。因此，我們認為貸款需求將相當疲軟，但今年有所改善。

That's great color. And maybe just as my follow-up, maybe one for Susan. And congratulations on your upcoming retirement. Well deserved. Can you just describe what drove kind of the increase in nonperformers? And then if you have an update to the criticized balances at quarter end, I think they were a little over $2 billion at the end of the fourth quarter.

那顏色真棒。也許就像我的後續行動，也許是給蘇珊的。並祝賀您即將退休。應得的。您能簡單描述一下是什麼導致了不良員工的增加嗎？然後，如果您對季度末受到批評的餘額進行更新，我認為第四季度末的餘額略高於 20 億美元。

Sure, thanks. And thanks, Michael, for the nice comments. As it relates to new nonperforming, we saw nonperforming go up about $43 million, and that -- we were -- a few new nonperforming loans. That increase was largely driven by 2 credits, one was a senior living facility -- senior living assisted living memory care facility and the other was a consumer finance company.

當然，謝謝。感謝邁克爾的精彩評論。就新的不良貸款而言，我們看到不良貸款增加了約 4,300 萬美元，而且還有一些新的不良貸款。這一增長主要是由兩個學分推動的，一個是高級生活設施——高級生活輔助生活記憶護理設施，另一個是消費金融公司。

Again, so when we're seeing some slight movement in NPLs, we're still seeing it kind of not any specific industry or sector. And as it relates to criticized, we have had a continued focus on conservative grading. And as we somewhat seasonal getting end -- year end financials on borrowers. We did see criticized balances go up, about 20% but most -- much of that was in special mention kind of a watch status, so those are not defined weaknesses at this point, they're more potential weaknesses where we're just taking a more frequent look, working with borrowers. The other thing I'm really pleased to see, and this is in commercial real estate as well as C&I, is borrowers really coming to the table wanting work with us, we're wanting to work with them. We've seen good opportunities to bring in additional equity reserves, et cetera, as we have loans that may be temporarily challenged due to interest rate environment. And then classified loans were up less than 10% quarter-over-quarter.

同樣，當我們看到不良貸款出現一些輕微變化時，我們仍然看到它並不是任何特定的行業或部門。由於涉及批評，我們一直關注保守的評分。當我們有點季節性結束時——借款人的年終財務狀況。我們確實看到批評的餘額增加了，大約 20%，但大多數 - 其中大部分是特別提及的監視狀態，所以目前這些還不是明確的弱點，它們是我們剛剛採取的更多潛在弱點更頻繁地與借款人合作。我非常高興看到的另一件事是，在商業房地產以及工商業領域，借款人確實願意與我們合作，我們也希望與他們合作。我們看到了引入額外股本儲備等的好機會，因為我們的貸款可能會因利率環境而暫時受到挑戰。然後分類貸款季增不到 10%。

Our next question comes from Jon Arfstrom from RBC.

我們的下一個問題來自加拿大皇家銀行 (RBC) 的 Jon Arfstrom。

That's close. Jon Arfstrom Just -- Susan, for you, any -- just a follow-up on Michael's question, anything new or surprising that you're seeing on credit? And so what do you think we should expect on nonperforming trends for 2024? Can you just set the expectation there? .

那很接近了。喬恩·阿夫斯特羅姆 (Jon Arfstrom) 只是——蘇珊，對你來說，任何——只是邁克爾問題的後續，你在賒賬中看到了什麼新的或令人驚訝的事情嗎？那麼您認為我們應該對 2024 年不良趨勢有何預期？你能在那裡設定期望嗎？ 。

Yes. I'm not really seeing anything that surprises me. Again, we're -- look, each one kind of has a story for talking borrower by borrower. We've had a number of deep dives and portfolio reviews across lines of business in different regions. Great conversations with our bankers about what's going on. Our bankers are having great conversations with clients. As I mentioned earlier to Michael's question, I'm still really pleased to see how we're able to be at the table, talk about rightsizing a loan or what do we need to do?

是的。我真的沒有看到任何令我驚訝的事情。再說一遍，我們——看，每種借款人都有一個由借款人談論的故事。我們對不同地區的業務線進行了多次深入研究和投資組合審查。與我們的銀行家就正在發生的事情進行了精彩的對話。我們的銀行家正在與客戶進行愉快的對話。正如我之前在邁克爾的問題中提到的，我仍然很高興看到我們如何能夠坐在談判桌上，討論調整貸款規模或我們需要做什麼？

What do you think is going to happen, getting updated projections from clients. So we still feel good about the ultimate performance of the portfolio. I think depending on what happens with interest rates, Jon, that's probably going to effect. And obviously, if we start seeing rates start to go down, I think you'll see nonperforming loans start to slow in terms of any increases. The good news about not having any increased rates right now, though, you're seeing a lot of borrowers who have adapted to this new interest rate environment, whether it's able to pass the loan cost in their businesses or just -- or learning how to do things differently, being more efficient, learning how to operate in a higher interest rate environment. So it is -- we're still being cautious. Bryan mentioned, we're always selective. We're disciplined in how we underwrite discipline in client selection. And so that's serving us well, but we're keeping an eye on the portfolio.

從客戶那裡得到最新的預測，你認為會發生什麼。所以我們對這個投資組合的最終表現還是感覺良好。喬恩，我認為這可能會產生影響，這取決於利率的變化。顯然，如果我們開始看到利率開始下降，我認為不良貸款的成長速度也會開始放緩。不過，目前利率沒有上調的好消息是，你會看到很多藉款人已經適應了這種新的利率環境，無論是能夠轉嫁企業的貸款成本還是只是——或者學習如何以不同的方式做事，提高效率，學習如何在更高的利率環境下運作。事實如此——我們仍然保持謹慎。布萊恩提到，我們總是有選擇性的。我們在客戶選擇方面遵守紀律。這對我們很有幫助，但我們正在密切關注投資組合。

Jon, I would add to that. I'm not really surprised at all by anything I see in terms of credit performance. You're getting what you would expect with higher inflation and higher interest rates and a lot of movement in a fairly short period of time.

喬恩，我想補充一點。對於我所看到的信用表現方面的任何事情，我一點也不感到驚訝。你會得到你所期望的更高的通貨膨脹和更高的利率以及在相當短的時間內發生的大量變動。

And across the entire economy, you're going to have borrowers who are a little more stressed by that, it's going to show up in terms of their performance. I would say Susan and her credit teams as well as our relationship teams, our RMs and PMs have been very proactive and doing deep dives through our portfolio, understanding at a transaction level borrowers' financial position. As Susan said, being very proactive in working with borrowers. And as Susan also said, we've had a tremendous success with borrowers who want to work with us and stepped up with rightsizing loans, et cetera. So I'm not surprised. And in fact, I'm very pleased with the performance that I see, given the nature of what's going on in the underlying economy and the way we structured this loan portfolio I'm very comfortable that we're in a pretty good position.

在整個經濟中，借款人會因此而承受更大的壓力，這會反映在他們的表現上。我想說蘇珊和她的信貸團隊以及我們的關係團隊、我們的客戶經理和專案經理一直非常積極主動，深入研究我們的投資組合，在交易層面了解借款人的財務狀況。正如蘇珊所說，與借款人合作非常積極主動。正如蘇珊也所說，我們在那些願意與我們合作的借款人身上取得了巨大的成功，並加強了貸款規模調整等力度。所以我並不感到驚訝。事實上，我對我所看到的表現非常滿意，考慮到基礎經濟的性質以及我們建立貸款組合的方式，我對我們處於一個非常好的位置感到非常滿意。

Okay. Good. Fair enough. And then Hope for you on Slide 8. The bottom of Slide 8, you're highlighting $5 billion in loans and securities that are rolling off. Can you talk about what the repricing uplift is from that? And I think the message here is that you expect the margin to grind higher because of some of this repricing -- the deposit repricing opportunities are probably done. So it's more about this asset repricing that's kind of driving the margin higher over time. Is that the right message? .

好的。好的。很公平。然後是幻燈片 8 上的希望。能談談由此帶來的重新定價提升嗎？我認為這裡傳達的訊息是，由於某些重新定價，您預計保證金會更高——存款重新定價機會可能已經完成。因此，更多的是這種資產重新定價，隨著時間的推移，這會推高利潤率。這是正確的資訊嗎？ 。

That's the right message, Jon. I think the positive I think could go a couple of basis points lower or couple of basis points higher in quarter-to-quarter that may change until we see that first rate cut. But we have $4 billion rolling off at 2.25% yield, and you're seeing 6% and 7% yields pretty steadily in the market and some 8s in our specialty businesses. And so absolutely putting that to work on the client side of the balance sheet versus parking it in securities or something else is our attention with that money to be able to increase our spread.

這是正確的訊息，喬恩。我認為，我認為的積極因素可能會在每個季度下降幾個基點或上升幾個基點，這種情況可能會發生變化，直到我們看到第一次降息。但我們有 40 億美元的資金以 2.25% 的收益率滾動，你會看到市場上 6% 和 7% 的收益率相當穩定，而我們的專業業務的收益率約為 8%。因此，絕對將其用於資產負債表的客戶端，而不是將其存放在證券或其他東西中，我們用這筆錢來專注於能夠增加我們的利差。

Our next question comes from Casey Haire from Jefferies.

我們的下一個問題來自 Jefferies 的 Casey Haire。

Hope, a question for you on the NII outlook. The DDA attrition a little bit lower than you guys kind of highlighted in January. Just wondering what does this guide presume for DDA mix going forward? .

希望向您詢問有關 NII 前景的問題。 DDA 的流失率比你們一月強調的要低一些。只是想知道本指南對 DDA 組合的未來有何假設？ 。

Yes. The guide is a range -- a 4 basis point range there. So it is -- assuming today, we're assuming kind of flat balances with noninterest bearing, if we were to see a larger pickup in that, again, that could help us get to the higher end of the range. But I don't see any risk to that taking us below the range if we saw a material runoff. We think we're at the bottom, right? We saw some January outflows, February and March are really stabilized. First quarter does tend to be a little bit more seasonally low and then come back through the year. .

是的。該指南是一個範圍－4 個基點的範圍。事實就是這樣——假設今天，我們假設餘額處於無息平衡狀態，如果我們看到餘額出現更大的回升，那麼，這可能會幫助我們達到該範圍的較高端。但如果我們看到材料流失，我認為不會有任何風險使我們低於該範圍。我們認為我們處於底部，對嗎？我們看到一月份有一些資金流出，二月和三月確實穩定了。第一季確實往往會比季節性低一些，然後全年都會回升。 。

Okay. Very good. And then just a big picture question on getting ready for the $100 billion and Cat 4. When I compare you guys versus the Cat 4 group, you guys are in pretty good shape. If there is a weak link, it's on the liquidity side. I'm just wondering when do you guys start to -- I know you have time, but when do you start to address that and build out the securities book and/or drive down that loan-to-deposit ratio? .

好的。非常好。然後是一個關於為 1000 億美元和 Cat 4 做好準備的大局問題。如果說存在薄弱環節的話，那就是流動性方面。我只是想知道你們什麼時候開始——我知道你們有時間，但是你們什麼時候開始解決這個問題並建立證券賬簿和/或降低貸存比？ 。

Yes. The -- there's a lot of work going on all around the industry to understand the impact on potential category for banks. As you note Casey, we've done a lot of work around it. And I think we are in pretty good shape. We have continued to run stress testing. We have some of the infrastructure in place, not all and we will build that infrastructure out on the compliance side. The balance sheet structure issues really fall into 2 major categories, 1 you highlighted, which is liquidity.

是的。整個行業正在進行大量工作來了解對銀行潛在類別的影響。正如您注意到的 Casey，我們已經圍繞這個問題做了很多工作。我認為我們的狀態非常好。我們繼續進行壓力測試。我們擁有一些基礎設施，但不是全部，我們將在合規方面建造該基礎設施。資產負債表結構問題其實分為兩大類，您強調的第一類是流動性。

The other is a potential for TLAC. And we don't have a lot of total loss absorbing capital or long-term debt on our balance sheet either. And in some sense, those 2 can be mutually solving in the sense that if we raise debt, we can use that to fund high-quality liquid assets. So as you said, we have time. We don't feel any particular urgency to start moving the shape of the balance sheet today. We're mindful of those 2 balance sheet hurdles that we would have to get over. And as we get greater clarity from the Basel III in game, the FDIC's proposals around TLAC we'll have a better sense of the steps that we need to take over the next 2 or 3 years to get prepared for crossing that threshold.

另一個是 TLAC 的潛力。我們的資產負債表上也沒有大量吸收資本或長期債務的總損失。從某種意義上說，這兩者可以相互解決，如果我們舉債，我們可以用它來為高品質的流動資產提供資金。正如你所說，我們有時間。我們並不覺得今天開始改變資產負債表的形狀有任何特別的迫切性。我們注意到我們必須克服的兩個資產負債表障礙。隨著我們對《巴塞爾協議 III》以及 FDIC 圍繞 TLAC 的建議有了更清晰的了解，我們將更好地了解在未來 2 到 3 年內我們需要採取哪些步驟，為跨越這一門檻做好準備。

Great. Just last question for Susan. You mentioned or Hope mentioned, a handful of losses within the CRE bucket on updated appraisals. Just wondering if you could provide some color as to what the price decline was on those underlying properties. .

偉大的。這是蘇珊的最後一個問題。你提到或霍普提到，商業房地產在更新評估中出現了一些損失。只是想知道您是否可以提供一些關於這些基礎房產價格下降的資訊。 。

Yes. I mean on the specific ones, I'd say, on average, we saw probably about a 20% decline. I did talk to get in close contact with our chief appraiser, just on a larger perspective, Casey, just on what we're seeing in terms of reappraisal but on nonperforming properties but also just office in general. And it really varies a good bit by market, strong markets like in Florida, you're seeing small (inaudible) 3% to 5%. And in some markets or certain office properties that may have had a major tenant that they haven't yet replaced, you can see it in the 25% range. So it is kind of on an individual basis. As it relates to the credits where we took a partial charge related to new updated appraisals this quarter within 3 different markets and one was actually more of a mixed-use facility, just that office had the most space and so we classify that as office. All 3 are in our footprint. .

是的。我的意思是，就具體而言，平均而言，我們可能看到下降了 20% 左右。我確實與我們的首席評估師進行了密切聯繫，只是從更大的角度來看，凱西，只是我們在重新評估方面看到的情況，但在不良資產方面，也只是一般的辦公室。而且它確實因市場而異，像佛羅裡達州這樣的強大市場，你會看到小（聽不清楚）3% 到 5%。在某些市場或某些可能擁有尚未更換的主要租戶的辦公物業中，您可以看到這一比例在 25% 的範圍內。所以這是基於個人的。因為它與積分有關，我們在本季度3 個不同的市場內收取了與新更新的評估相關的部分費用，其中一個實際上更多的是混合用途設施，只是該辦公室擁有最大的空間，因此我們將其歸類為辦公室。這三個都在我們的足跡中。 。

Okay. And so the -- it sounds like most were office. One was a mixed use? Or was -- are these varied by underlying property type?

好的。所以——聽起來大多數都是辦公室的。一種是混合使用？或者 - 這些是否因基礎財產類型而異？

Of the $12 million that we took in charge-offs in commercial real estate, two were pure office and then 1 was a mixed use that had some office space, which was the predominant space but it also had some retail and multifamily.

我們在商業房地產沖銷的 1200 萬美元中，有 2 個是純辦公大樓，1 個是混合用途，有一些辦公空間，這是主要空間，但也有一些零售和多戶住宅。

Our next question comes from Jared Shaw from Barclays.

我們的下一個問題來自巴克萊銀行的賈里德·肖。

Maybe sticking with Casey's question on the CRE. What drove the revaluation? Is that because you saw individual credit migration? Or is this part of a broader revaluation of all CRE? And I guess if it's not broader, what happens to drive a revaluation?

也許還是堅持凱西關於 CRE 的問題。是什麼推動了人民幣升值？那是因為你看到個人信用遷移了嗎？或者這是對所有商業房地產更廣泛重估的一部分？我想如果它的範圍不更廣泛，會發生什麼事來推動重估呢？

Yes, there are a number of things, Jared, that -- first of all, whenever we downgrade loans to non-pass, we have a policy where we do updated appraisals on commercial real estate loans that get downgraded to non-pass within several months of the downgrade.

是的，有很多事情，賈里德，首先，每當我們將貸款降級為不合格時，我們都會制定一項政策，對商業房地產貸款進行更新評估，這些貸款會在數年內被降級為不合格。

And then as we -- if we start to see further deterioration and in this case, these were nonperforming loans then we'll -- in all these 3 cases, these were -- we repriced 6 months later, just having to look at what may be going on. The other thing that can trigger it is if there's something in an individual loan, it could be the loss of the tenant that was -- maybe it was being renegotiated. I thought it was going to come up or maybe it's renegotiated at a lower rate, that could cause the need for an appraisal. So we believe in being conservative. And if we need to reappraise like in this case, within 6 months of the last one, then we'll do that to make sure we've got the valuations correct.

然後當我們——如果我們開始看到進一步惡化，在這種情況下，這些都是不良貸款，那麼我們——在所有這3 種情況下，這些都是——我們在6 個月後重新定價，只需看看是什麼可能正在發生。另一件可能引發這種情況的事情是，如果個人貸款中有任何問題，可能是租戶的損失——也許正在重新談判。我認為它會出現，或者可能會以較低的價格重新談判，這可能會導致需要進行評估。所以我們相信保守。如果我們需要像本例一樣在上次評估後的 6 個月內重新評估，那麼我們將這樣做以確保估值正確。

Okay. So those 3 loans you talked about they were previously nonperformers and they hit the 6-month, so you did an additional reappraisal. I guess what happened with that first reappraisal. So if these are down call it, 20%. What was that first reappraisal step down from maybe peak to current?

好的。因此，您談到的 3 筆貸款以前是不良貸款，並且期限已到 6 個月，因此您進行了額外的重新評估。我猜第一次重新評估發生了什麼事。因此，如果這些都被下調，則為 20%。從高峰到目前的第一次重新評估步驟是什麼？

So on that -- on one of them. I mean...

那麼就這一點——其中之一。我是說...

Well, I guess on those 3 loans that were previously nonperformer, I guess, what -- you talked about a 20% markdown now from what I'm assuming is the 6-month prior reappraisal, what's the magnitude of sort of origination to current markdown?

好吧，我猜想，對於之前表現不佳的那 3 筆貸款，我想，你現在談到了 20% 的降價，我假設是 6 個月前的重新評估，從原始貸款到當前貸款的規模是多少降價？

Right. So in terms of -- I have to look back at that. But again, on average, what we're seeing -- and I hate to do averages because it really does vary by property. So in one case, it was down 20%, 25% from an original appraisal. But then our charge was not nearly that much because we've got significant equity that we've got in these properties when we underwrite them. In other cases, we're seeing appraisal changes of 10%. So there's a different number for each building.

正確的。因此，我必須回顧一下這一點。但同樣，平均而言，我們所看到的——我討厭做平均值，因為它確實因房產而異。因此，在一個案例中，它比最初的評估下降了 20%、25%。但我們的費用並沒有那麼高，因為當我們承銷這些財產時，我們在這些財產中擁有大量的股權。在其他情況下，我們看到評估變化為 10%。所以每棟建築都有不同的編號。

Okay. All right. That's good color. And then maybe shifting to the fixed income business, really good trends in ADRs this quarter. I guess, in a stable rate environment, what's driving the expectation for lower ADRs going forward? Was that just -- you saw some maybe a spurt of activity early on and then it tapered off? Or how should we be thinking about the pace of that for the rest of the year?

好的。好的。這顏色真好啊然後可能會轉向固定收益業務，本季美國存託憑證的趨勢非常好。我想，在穩定的利率環境下，是什麼推動了未來 ADR 下降的預期？這是否只是——您可能在早期看到了一些活動的激增，然後逐漸減弱？或者我們應該如何考慮今年剩餘時間的進展速度？

Yes. Jared, I'll start that. The first is there was a pent-up demand, right? There has not been a lot of balance sheet repositioning. There has not been a lot of liquidity put to use. So we started to see it happen in December. We had a really good December, which we talked on our last earnings call and that just carried through Q1. And so we think some of that is behind us, and it was more of just kind of a catch-up Additionally, the current week has given us a little bit of pause in that we are talking about not if we'll see rate cuts, but could we see a rate increase this year, what will it look like? And that has -- will stall that business for a period of time.

是的。賈里德，我來開始吧。首先是有被壓抑的需求，對嗎？資產負債表並沒有進行太多的重新定位。尚未使用大量流動性。所以我們從十二月開始看到它發生。我們度過了一個非常美好的十二月，我們在上次財報電話會議上談到了這一點，並且剛剛延續到第一季。因此，我們認為其中一些已經過去了，這更像是一種追趕。 ？這將使該業務停滯一段時間。

And if you run the current guidance, I know you all do after this call, it assumes kind of a $500,000-ish ADR for the rest of the year, which is still significantly stronger than we saw last year in every quarter except for Q4.

如果你運行當前的指導，我知道你們在這次電話會議後都會這樣做，它假設今年剩餘時間的ADR 約為500,000 美元，這仍然比我們去年在第四季度之外的每個季度看到的強得多。

Okay. Okay. And then finally, just for me on the buyback, strong activity this quarter. Should we be thinking that you continue being pretty aggressive on that $650 million authorization? Or was there anything unique in the first quarter that may have accelerated some of that.

好的。好的。最後，就我而言，本季的回購活動強勁。我們是否應該認為您繼續對 6.5 億美元的授權非常積極？或者第一季是否有什麼獨特的事情可能加速了其中的一些進展。

No. We'll continue to be very opportunistic, but we still believe that the stock is and has been on sale, and we'll look for opportunities to manage our excess capital relative to that 11% near-term target. And the buyback is a great vehicle for doing that in the absence of a significant pickup in balance sheet growth, i.e., loan growth.

不會。在資產負債表成長（即貸款成長）沒有顯著回升的情況下，回購是實現這一目標的一個很好的工具。

Our next question comes from Chris McGratty from KBW.

我們的下一個問題來自 KBW 的 Chris McGratty。

Great. Just wanted to follow up on Jared's question on the buyback. Brian, you mentioned 11% in the near term. I guess, what would lead you to change that directionally either up or down? And maybe is there something you could consider this year?

偉大的。只是想跟進賈里德關於回購的問題。 Brian，您提到近期會達到 11%。我想，什麼會導致你向上或向下改變方向？也許今年你可以考慮一些事情？

Well, right now, I don't think -- I don't think about changing the 11% near term. I think there's still enough uncertainty in the economy and the interest rate environment that we want to see a few more cards. If anything changed, it would have to be a significant pickup in the economic environment and inflation abating significantly.

嗯，現在，我不認為——我不考慮在短期內改變 11%。我認為經濟和利率環境仍然存在足夠的不確定性，我們希望看到更多的牌。如果有什麼變化的話，那一定是經濟環境的顯著改善和通貨膨脹的顯著減弱。

And I don't anticipate either 1 of those at this point. So we'll manage to the 11% near term. We'll have greater clarity probably by the end of this year about what Basel III is likely to -- Basel III endgame is likely to look like and we can manage from there. So we're comfortable with that target. And as we pointed out earlier, we start with 11.3% ratio in CET1. And so we have a little bit of gap there and we're going to have some earnings. So we think we've got the capacity with the authorization that we can make a significant dent in that authorization over the next 3 quarters.

目前我預計不會出現其中任何一個。因此，我們近期將設法達到 11%。到今年年底，我們可能會更清楚地了解巴塞爾協議 III 可能會發生什麼事——巴塞爾協議 III 的最終結果可能會是什麼樣子，我們可以從那裡進行管理。所以我們對這個目標感到滿意。正如我們之前指出的，我們從 CET1 的 11.3% 比例開始。所以我們在那裡有一點差距，我們將會有一些收入。因此，我們認為我們有能力獲得授權，可以在未來三個季度內對該授權做出重大貢獻。

Okay. Great. And just maybe one more on the fee income business, a lot of talk about the fixed income. The mortgage banking is a smaller line item but directionally had a decent jump linked quarter. Maybe what's in your assumptions in your guide, Hope, for the mortgage, just the gain on sale business?

好的。偉大的。也許還有一個關於費用收入業務的問題，很多關於固定收益的討論。抵押貸款銀行業務是一個較小的項目，但與季度相關的方向有不錯的跳躍。也許您的指南中的假設是什麼，希望，對於抵押貸款，只是銷售業務的收益？

It's not materially up from here. Q1 was coming off a pretty record low last year for mortgage originations and Q4 was somewhat anemic in that space. And so we're not expecting a big upturn, but just a continued originations coming in.

從這裡開始，它並沒有實質的提高。去年第一季抵押貸款發放量創下歷史新低，而第四季在該領域則有些乏力。因此，我們預計不會大幅好轉，而只會持續出現。

Our next question comes from Steven Alexopoulos from JPMorgan.

我們的下一個問題來自摩根大通的史蒂文·阿萊克索普洛斯。

Bryan, I wanted to go back to your answer to Casey's question on crossing $100 billion. And I'm curious, given how this New York Community situation played out, how has that impacted how you think about crossing the threshold. Previously, you said that (inaudible) transaction was a preferred method. Curious if you still feel that way. .

布萊恩，我想回到你對凱西關於突破 1000 億美元問題的回答。我很好奇，考慮到紐約社區的情況如何發展，這對你對跨越門檻的想法有何影響。之前，您說過（聽不清楚）交易是首選方法。很好奇你是否仍然有這種感覺。 。

Sorry, the last part, again, it broke up a little bit. I still feel what way about what?

抱歉，最後一部分又有點破裂了。我仍然對什麼有感覺？

Well, in the past -- yes, in the past you indicated that you don't want to fall over $100 billion, you want to more or less leap over it by a transaction. I'm just curious if you still feel that way just seeing how your community played out?

嗯，在過去——是的，在過去你表示你不想超過 1000 億美元，你想透過一筆交易或多或少地跨越它。我只是好奇，當你看到你的社區表現如何時，是否仍然有這種感覺？

Well, yes, that's a -- yes, I guess you have a couple of thoughts. One, if you put M&A in a separate bucket, I still have significant reservations about one, what can get approved; and two, how long it takes to get it approved. And so that's not something without greater clarity that looks like a good idea independently. And then you couple it with crossing the $100 billion threshold, and in particular, how much readiness do you have to have?

嗯，是的，這是——是的，我想你有幾個想法。第一，如果你把併購單獨放在一個桶子裡，我對什麼可以得到批准仍然持很大保留；第二，獲得批准需要多長時間。因此，如果沒有更清晰的說明，這並不是一個獨立的好主意。然後你將其與跨越 1000 億美元的門檻結合起來，特別是，你必須做好多少準備？

Is there really a 3-year phase in, if you cross in the context of an M&A transaction? I would tell you while I don't have any inside information, my gut would tell me that what happened recently is likely to make it more difficult to cross, and I think you'll have to show a significant -- a significantly greater degree of preparedness to be a category for a bank or a very near-term path for achieving that. So I think it makes it and said another way, it makes it more likely that if you cross the $100 billion threshold in the near term, it's likely to be in an organic fashion, and then you sort of deal with is M&A the right strategy and does it make sense from a shareholder and a capital deployment perspective, independent of trying to cross that threshold.

如果在併購交易中進行交叉，真的有一個為期三年的階段嗎？我會告訴你，雖然我沒有任何內幕消息，但我的直覺會告訴我，最近發生的事情可能會讓穿越變得更加困難，而且我認為你必須表現出顯著的——顯著更大的程度準備成為銀行的一個類別或實現這一目標的近期路徑。所以我認為它成功了，換句話說，如果你在短期內跨越 1000 億美元的門檻，它很可能會以一種有機的方式，然後你要處理的是併購，這是正確的策略從股東和資本部署的角度來看，這是否有意義，而與試圖跨越這一門檻無關。

Okay. That's helpful. That makes sense. If I could shift gears and talk about C&I loan growth. When I look at balances, they're pretty flat versus the prior quarter, up a bit versus last year. And it's funny when I look at your market is what's going on in Nashville or Texas or Florida, they're on fire. GDP is probably 4% in your markets. Why are you not seeing stronger commercial loan growth here?

好的。這很有幫助。這就說得通了。如果我能換個話題，談談工商業貸款的成長。當我查看餘額時，與上一季相比相當持平，與去年相比略有上升。有趣的是，當我看到納許維爾、德克薩斯州或佛羅裡達州正在發生的市場時，它們很火。你們市場的 GDP 可能是 4%。為什麼您沒有在這裡看到更強勁的商業貸款成長？

I'll take part of that, Stephen. In terms of C&I loan growth, first of all, we have been focused on making sure that we're taking care of existing clients first. We're also very focused on full relationship businesses. And as Brian said earlier, we continue to remain selective in terms of new underwriting and bringing on new clients.

我會參與其中，史蒂芬。在工商業貸款成長方面，首先，我們一直致力於確保我們首先照顧現有客戶。我們也非常注重全面關係業務。正如布萊恩早些時候所說，我們在新承保和吸引新客戶方面繼續保持選擇性。

That being said, we are open for business, and we are seeing some good opportunities and have brought in both new to bank as well as some increased opportunities with existing clients. And we are hearing -- when we have pipeline calls, we are hearing some additional opportunities for us to again, bring existing customers but also bringing some generational opportunities in our communities as well as in our specialty lines of business. So I think that you will continue to see some opportunities for loan growth across our markets and our business.

話雖這麼說，我們對業務持開放態度，我們看到了一些良好的機會，並為銀行帶來了新客戶，也為現有客戶帶來了一些更多的機會。我們聽到—當我們接到管道電話時，我們聽到一些額外的機會，可以再次為我們帶來現有客戶，同時也為我們的社區以及我們的專業業務領域帶來一些代際機會。因此，我認為您將繼續在我們的市場和業務中看到一些貸款成長的機會。

As I pointed out earlier, Steve, there are pockets that are stronger than others and some that are a little softer. And Susan is exactly right. If you step back, we are looking to build relationships and do relationship banking, and we really want to move and bank relationships, doing the transaction, lending money, getting it out the door is the easy part of the business.

正如我之前指出的，史蒂夫，有些口袋比其他口袋更強大，有些則更軟。蘇珊是完全正確的。如果你退後一步，我們正在尋求建立關係並開展關係銀行業務，我們確實希望移動和銀行業務關係，進行交易，放貸，把錢放出去是業務中最容易的部分。

It's really how you build relationships in the long term nature of the banking business. And I think our teams are doing an outstanding job of working for a relationship. And we've taken some opportunities where there is not the opportunity for a long-term relationship to step away from some transactions. So we're trying to manage our balance sheet in a way that manages the balance between profitability and growth.

這實際上是在銀行業務的長期性質中建立關係的方式。我認為我們的團隊在建立關係方面做得非常出色。我們抓住了一些機會，在沒有機會建立長期關係的情況下放棄某些交易。因此，我們正在嘗試以平衡獲利能力和成長之間的方式來管理我們的資產負債表。

Okay. That's fair. Maybe, Susan, if I could squeeze one more in for you on commercial real estate. I see the maturity schedule here on the slide. Can you tell us what was the balance of commercial real estate loans that team do here in the first quarter? And how did those work out in terms of refinance extensions, things like that?

好的。這還算公平。蘇珊，如果我能為你再擠一份商業地產的話，也許可以。我在幻燈片上看到了成熟度時間表。您能告訴我們第一季團隊在這裡做的商業房地產貸款餘額是多少嗎？這些在再融資延期等方面是如何實現的？

In terms of things that came up through, we've had -- in terms of things that have come up, we have been -- again, as I said earlier, we've had good really good outcomes in terms of working with borrowers on the appropriate way to refinance when there is a maturity. It could be -- things are clicking along like they should, and we look at just kind of a traditional renewal looking at rates and structure. Sometimes we do talk with borrowers about bringing money to the table either in terms of a paydown or some reserves.

就所發生的事情而言，我們已經——就已經發生的事情而言，我們已經——再次，正如我之前所說，我們在與借款人合作方面取得了非常好的成果到期時採取適當的再融資方式。可能是——事情正在按預期進行，我們只關注利率和結構的傳統更新。有時我們確實會與借款人討論以還款或一些準備金的形式提供資金。

So we're -- again, we're having, I think, really good success One of the things that I do want to emphasize is that we -- I mentioned this earlier, we've been very disciplined in our underwriting really through all the cycles. And if you look at things like our office portfolio, and this is with updated appraisals in them, our stabilized loan-to-value on office is about 60%. There's a lot of cushion that we have in our commercial real estate book of business. And that allows us, one, to continue to have good outcomes, but also the ability to work with borrowers and the borrowers have that kind of equity in front of our debt. There's even more of an incentive to work with us.

因此，我認為，我們再次取得了非常好的成功，我確實想強調的一件事是，我之前提到過，我們在核保方面一直非常自律。如果你看看我們的辦公室投資組合，這是更新後的評估，我們的辦公室穩定貸款價值約為 60%。我們的商業房地產業務中有很多緩衝。這使我們能夠繼續取得良好的成果，同時也能夠與借款人合作，而藉款人在我們的債務面前擁有這種權益。與我們合作的動力更大。

The last thing I would add is that we've also seen in certain cases where we have been able -- as Bryan talked about exiting things that aren't relationships. But I would tell you, I've also still will occasionally see us get refinanced out of something that might not hurt our feelings that were being refinanced out of either because of a credit grade or potentially a borrower that didn't come to the table with what's the right approach that worked for us. So it's good to see that there are still some opportunities out there, too, when it doesn't fit our risk profile going forward that there are opportunities for them to refinance. So all in all, I feel good about things that have come up for maturity, our ability to work with them and the options that we have.

我要補充的最後一件事是，我們在某些​​情況下也看到了我們能夠做到的——正如布萊恩談到的退出不是關係的事情。但我想告訴你，我仍然偶爾會看到我們從一些可能不會傷害我們感情的事情中獲得再融資，這些再融資要么是因為信用等級，要么是因為潛在的借款人沒有來到談判桌。什麼是對我們有用的正確方法。因此，很高興看到仍然存在一些機會，當它不符合我們未來的風險狀況時，他們有再融資的機會。總而言之，我對已經成熟的事情、我們與它們合作的能力以及我們擁有的選擇感到滿意。

And Susan, congratulations on the upcoming retirement. .

蘇珊，祝賀您即將退休。 。

Our next question comes from Timur Braziler from Wells Fargo.

我們的下一個問題來自富國銀行的 Timur Braziler。

One more for you, Susan, on commercial real estate. Just looking at the allowance build over the last couple of quarters compared to the coverage ratio on the CRE book. The coverage ratio looks like it's 115% today. That's been tracking lower. I guess how should we be thinking about the coverage ratio here? And if we don't get any kind of improvement in rates and we see some broader kind of degradation in that space. Are you modeling it to a coverage ratio? Are you modeling it to an allowance ratio? Maybe just give us the puts and takes of those two.

蘇珊，再給你一份關於商業房地產的內容。只需將過去幾個季度的津貼增加與商業房地產帳簿上的覆蓋率進行比較即可。今天的覆蓋率看起來是 115%。一直在走低。我想我們應該如何考慮這裡的覆蓋率？如果我們的利率沒有任何改善，我們就會看到該領域出現更廣泛的退化。您是否將其建模為覆蓋率？您是否將其建模為津貼比率？也許只是給我們這兩個的看跌期權和跌幅。

As it relates to the allowance process, I would tell you, we don't really -- we don't shoot for a specific number. We go through a disciplined process each and every quarter and look at various scenarios such as different economic outlook, things that are base case things that are ultra stress cases. We don't -- we don't put a lot of emphasis on upside cases, but there are those out there as well.

由於這與津貼流程有關，我想告訴你，我們實際上並沒有追求具體的數字。我們每季都會經歷一個嚴格的流程，並研究各種情況，例如不同的經濟前景、基本情況和超壓力情況。我們不會－我們不會過度強調正面的情況，但也有這樣的情況。

And then we have qualitative overlays related to certain segments that we may decide needs either -- that may need more than what just an economic outlook would look like. As you know, with CECL, CECL is considered a lifetime loss approach. So based on what we know today and what we're -- what's external autonomous and our own internal experts are saying we believe this is the right reserve coverage based on several different outcomes that could emerge. But as I mentioned earlier, each quarter, we're reevaluating that. And as you know, as we all know, things like interest rate outlook can change pretty dramatically quarter-to-quarter.

然後，我們有與某些細分市場相關的定性覆蓋，我們可能會決定需要這些細分市場——這可能需要的不僅僅是經濟前景的樣子。如您所知，對於 CECL，CECL 被認為是一種終生損失方法。因此，根據我們今天所了解的情況以及我們的情況——外部自治和我們自己的內部專家所說的，我們相信這是基於可能出現的幾種不同結果的正確儲備覆蓋範圍。但正如我之前提到的，每個季度我們都會重新評估這一點。如您所知，眾所周知，利率前景等因素可能會在每個季度發生巨大變化。

All that being said, I do think the economy -- Bryan talked about this, I think the economy remains strong. We're still seeing borrowers being able to adapt to higher inflation, higher interest rates, but this is something that we take a look at each and every quarter.

話雖這麼說，我確實認為經濟——布萊恩談到了這一點，我認為經濟仍然強勁。我們仍然看到借款人能夠適應更高的通膨和更高的利率，但這是我們每季都會審視的事情。

Great. And then my follow-up, looking at Slide 22 on the C&I loan buckets, the 12% of C&I that's to finance and insurance companies. Can you just give us a reminder what that composition is? And maybe more specifically, what component of that balance is to borrowers that are then using those funds as leverage for commercial loans?

偉大的。然後是我的後續行動，請查看幻燈片 22 中關於 C&I 貸款類別的內容，其中 12% 的 C&I 貸款給了金融和保險公司。可以提醒我們一下那個組合物是什麼嗎？也許更具體地說，對於隨後使用這些資金作為商業貸款槓桿的借款人來說，該餘額的哪些組成部分是什麼？

Yes. So the finance and insurance bucket has a number of different things in it probably one of the things in our asset-based lending business, we lend to companies that lend to others. A good part of that is consumer finance company, and we've had -- we've been in that business for many, many years. We've got very sophisticated borrowers. I would tell you just as a side bar, we've also seen them adapt nicely to higher interest rate environment as it relates to how they deploy. I don't have the exact number with me on how much of it is to then further commercial funds.

是的。因此，金融和保險領域有很多不同的內容，這可能是我們基於資產的貸款業務中的內容之一，我們向那些向其他公司提供貸款的公司提供貸款。其中很大一部分是消費金融公司，我們已經從事這項業務很多很多年了。我們有非常成熟的借款人。我想順便告訴你，我們也看到它們很好地適應了更高的利率環境，因為這與它們的部署方式有關。我沒有確切的數字來說明其中有多少將用於進一步的商業資金。

It's not a big number for us. We do have some of that because of business-to-business site lending arrangement, but it's not a significant portion of that finance and insurance bucket. So those are the ones I would highlight in that bucket.

對我們來說這不是一個大數字。由於企業對企業的網站貸款安排，我們確實有一些，但這並不是金融和保險領域的重要組成部分。所以這些是我要在該桶中強調的內容。

Our next question comes from Ben Gerlinger from Citi.

我們的下一個問題來自花旗集團的 Ben Gerlinger。

I was curious -- I know you (inaudible) quite a bit here on the guidance change. It seems like the uptick in fees (inaudible) as the big positive. So I think going from 4% to 6% now 6% to 10%. Should we kind of assume the expenses are closer to that 6% range given you've cited being fixed income and mortgage, which are typically higher efficiency ratio of businesses? Or can you also see fees at the high end and expenses on the lower end? Just kind of think about the cadence of the 2 throughout the year.

我很好奇——我對你（聽不清楚）在指導方針變更方面非常了解。費用的上漲（聽不清楚）似乎是一個巨大的正面因素。所以我認為從 4% 到 6% 現在是 6% 到 10%。鑑於您提到的固定收益和抵押貸款通常是企業效率較高的領域，我們是否應該假設費用更接近 6% 的範圍？或者您還可以看到高端的費用和低端的費用？想想 2 全年的節奏。

Ben, thanks for the question. I would not say that the expenses will be on the high end, and that's a foregone conclusion. As we mentioned, we are continuing to look at operational efficiencies. We are looking at what is the right way to run the organization in a lower loan growth environment, we have spent a significant amount of technology that's going to go into place this year that creates additional efficiency.

本，謝謝你的提問。我不會說費用會很高，這是已成定局。正如我們所提到的，我們正在繼續關注營運效率。我們正在研究在貸款成長較低的環境中運行組織的正確方法，我們已經投入了大量技術，這些技術將於今年投入使用，以創造額外的效率。

We're looking at every contract that's coming up and looking at what we're doing for it. And so our goal was not to be on the high end of that, but things can change. But no, I would not make that assumption. If I thought we were in the high end of that, honestly, I probably would have just increased guidance (inaudible) to be increased revenue and derisk it.

我們正在研究即將簽訂的每一份合同，並考慮我們正在為此做什麼。因此，我們的目標不是達到高端，但事情可以改變。但不，我不會做出這樣的假設。如果我認為我們處於高端，老實說，我可能會增加指導（聽不清楚）以增加收入並消除風險。

Got you. Okay. That's fair. It kind of leads to my next question actually because I know you're (inaudible), you took out a cut in our guidance. To me, it kind of implies close to a higher end. Like if we get to the middle of the year, would it even be worth going from plus 1% to 4% to something like 2% to 5%? Or is that too nuanced to think about? .

明白你了。好的。這還算公平。這實際上引出了我的下一個問題，因為我知道你（聽不清楚），你削減了我們的指導。對我來說，這意味著接近更高的目標。例如，如果我們到了年中，是否值得從 1% 到 4% 提高到 2% 到 5% 之類的水平？還是這太微妙而難以思考？ 。

Ben, I wish I could. If you saw the number of models we run, every single month. And as soon as we get to ALCO every month, somebody had said something, (inaudible) release something. There's new CPI data, which puts it out. And so I just don't think we're in an environment where we could be that specific. If we thought it was going to be kind of like our fee income. We knew that the high end of the guidance was probably the low side that we immediately let you guys know that we don't expect to -- we don't expect to come in because we expect to be on the high side. Instead, we said the previous high side or low side. Forecasting NII in this environment is very, very hard, even within a 3% range with as much moving parts that we have.

本，我希望我能。如果您看到我們每個月運行的模型數量。我們每個月一到 ALCO，就會有人說一些話，（聽不清楚）發布一些東西。新的 CPI 數據已經公佈。所以我認為我們所處的環境不可能如此具體。如果我們認為這會有點像我們的費用收入。我們知道指導的高端可能是低端，我們立即讓你們知道我們不希望出現——我們不希望進入，因為我們期望處於高端。相反，我們說的是先前的高邊或低邊。在這種環境下預測 NII 是非常非常困難的，即使在 3% 的範圍內，我們擁有盡可能多的移動部件。

Got you. Okay. I appreciate it. For it's worth, I want (inaudible) model with kind of similar numbers. So I appreciate the heavylifting that you guys are doing here.

明白你了。好的。我很感激。為了它的價值，我想要具有類似數字的（聽不清楚）模型。所以我很欣賞你們在這裡所做的繁重工作。

Our next question comes from Christopher Marinac from Janney Montgomery Scott.

我們的下一個問題來自詹尼·蒙哥馬利·斯科特的克里斯托弗·馬裡納克。

Susan, I wanted to ask about loan modification. How often are you seeing (technical difficulty).

蘇珊，我想問有關貸款修改的問題。您多久會看到一次（技術難度）。

Chris, you broke up the last part of that question. Can you repeat it?

克里斯，你打破了這個問題的最後一部分。你能重複一下嗎？

Chris, are you there?

克里斯，你在嗎？

He might be back. Chris, you back?

他可能會回來。克里斯，你回來了嗎？

Let's move on to the next question and Chris can hop back in the queue if he needs to.

讓我們繼續討論下一個問題，如果克里斯需要的話，他可以跳回隊列。

Our next question comes from Brennan Crowley from Baird.

我們的下一個問題來自貝爾德 (Baird) 的布倫南·克勞利 (Brennan Crowley)。

Given this guidance, I know at 1 point last year, kind of 2024 positive operating number was discussed, and kind of walk back a bit. And I know it's difficult with the investment initiative underway here, but given what you've seen in your 3 months and what you guide today, is that even as a possibility for this year?

考慮到這一指導，我知道在去年的某個時候，討論了 2024 年的積極運營數字，然後稍微退一步。我知道這裡正在進行的投資計劃很困難，但考慮到您在 3 個月中所看到的情況以及您今天的指導，今年是否有可能？

Thanks for the question, Brennan. I think if you look at where the guide is, it is neutral on operating leverage or slightly positive, depending on which side of the range we come in.

謝謝你的提問，布倫南。我認為，如果你看一下指南的位置，你會發現它對營運槓桿是中性的，或者稍微積極的，這取決於我們處於範圍的哪一邊。

So in short, the answer is yes.

簡而言之，答案是肯定的。

All right. Great. And then just as a quick follow-up, and maybe I missed this in the prepared remarks, but I saw that the investment portfolio yield actually fell sequentially. So I'm just kind of wondering if you could talk about the driver there? And then maybe how you guys plan to manage the portfolio and roll off over the next couple of quarters?

好的。偉大的。然後，作為快速跟進，也許我在準備好的演講中錯過了這一點，但我看到投資組合收益率實際上連續下降。所以我只是想知道你是否可以談談那裡的司機？那麼你們計劃如何管理投資組合併在接下來的幾個季度內進行推廣？

Yes. First, I'll mention, we're currently not reinvesting in our securities portfolio. So we're letting it run off and redeploying that into the loan side of our balance sheet. But a lot of the volatility that you saw this quarter is just the mark-to-market with where the market is at the end of the quarter. There was nothing material change in our balance sheet.

是的。首先，我要提一下，我們目前沒有對我們的證券投資組合進行再投資。因此，我們讓它流失，並將其重新部署到我們資產負債表的貸款部分。但本季您看到的許多波動只是按季度末市場情況計算的。我們的資產負債表沒有重大變動。

Our next question comes from Samuel Varga from UBS.

我們的下一個問題來自瑞銀集團的塞繆爾·瓦爾加。

I just wanted to ask one last follow-up on NII. I appreciate you touched on the $4 billion of the fixed rate loan repricing. Could you give some color on how even that is through 2024? Is it similar to securities where it's pretty much the same every quarter? Or is it a bit more front or backloaded?

我只是想問 NII 的最後一個後續問題。感謝您談到 40 億美元的固定利率貸款重新定價。能否詳細說明一下 2024 年的情況如何？它是否類似於每個季度幾乎相同的證券？還是它是更前載還是後載？

Yes, it's pretty consistent through the quarter. There's not a bulge quarter or it being backloaded.

是的，整個季度的情況非常穩定。沒有出現突出的季度或被回載。

And our next question comes from Christopher Marinac from Janney Montgomery Scott.

我們的下一個問題來自詹尼·蒙哥馬利·斯科特的克里斯托弗·馬裡納克。

Susan, I wanted to ask you about loan modifications and how often they are a tactic for resolving any type of loan this year or next?

蘇珊，我想問您有關貸款修改的問題，以及它們作為今年或明年解決任何類型貸款的策略的頻率如何？

Well, I mean any time we have either -- if there's a true maturity, we're always looking at what do we need to do. That's really not a true modification. In terms of modifications when we have loans that are noncash and are handled in our special assets group, there are situations where it might be in our best interest if we're the lead bank or the sole bank to work with them on modifications. And then obviously, on some of the deals where we're part of a bank group and the bank group has to work together on what could be an appropriate loan modification. I would tell you, Chris, that we have a history of wanting to work with farmers and figure out the best outcomes that, obviously, for us they are the best outcomes for our shareholders, but we've also are complimented frequently by our borrowers about our ability to work with them and in some cases, keep them in business.

嗯，我的意思是，任何時候我們都有——如果有真正的成熟，我們總是會考慮我們需要做什麼。這確實不是真正的修改。就修改而言，當我們擁有非現金貸款並在我們的特殊資產組中處理時，在某些情況下，如果我們是牽頭銀行或唯一與他們合作進行修改的銀行可能符合我們的最佳利益。顯然，在我們屬於銀行集團的一些交易中，銀行集團必須共同努力進行適當的貸款修改。克里斯，我想告訴你，我們一直希望與農民合作，找出最好的結果，顯然，對我們來說，這對我們的股東來說是最好的結果，但我們也經常受到借款人的稱讚關於我們與他們合作的能力，以及在某些情況下，讓他們繼續營業的能力。

And as I mentioned earlier, in many cases, they've got a lot of equity ahead of us. So they have a vested interest in working with us for -- to come up with something that makes sense and is economically viable for both the bank and the client.

正如我之前提到的，在許多情況下，他們在我們面前擁有大量股權。因此，與我們合作，提出對銀行和客戶有意義且經濟上可行的方案，符合他們的既得利益。

Yes. Loan modifications used to be an accounting term of ours. And I'll echo what Susan said, I often say this, and I don't say it lightly to our client. And we look at it as a partnership. And so we use that long-term relationship, and we work through the ups and downs. And I don't consider that modification. I just consider that supporting the long-term relationships that really drive the profitability of our organization and our balance sheet and at the same time, makes our customers and our communities stronger.

是的。貸款修改曾經是我們的一個會計術語。我會回應蘇珊所說的，我常常這麼說，而且我不會輕易對我們的客戶這麼說。我們將其視為一種夥伴關係。因此，我們利用這種長期關係，共同度過風風雨雨。我不考慮這種修改。我只是認為支持長期關係能夠真正推動我們組織和資產負債表的獲利能力，同時使我們的客戶和社區變得更強大。

No, that's great. And Susan, just a quick follow-up on debt service coverage ratios. How is the stress process going for customers? Are you seeing instances where you have to criticize a loan due to just higher interest rates and the DSCRs falling?

不，那太好了。蘇珊，只是對償債覆蓋率的快速跟進。客戶的壓力處理流程如何？您是否遇到過因為利率上升和 DSCR 下降而不得不批評貸款的情況？

Yes. Chris, I would say that's actually the predominant reason that we're taking loans to special mention in the initial criticized status, would be that debt service coverage while still over -- still able to service the loan. It might be -- it's less than either a covenant or where the borrower expected to be at a certain point in time. We do expect, and I mentioned earlier that the downgrades mostly have been into that special mention category. That's a very dynamic category, and we do see borrowers come back out of it as they adjust either their operating expenses or if interest rates do start coming down. I expect you'll see a good bit of -- a lot of upgrades at that point.

是的。克里斯，我想說，這實際上是我們在最初受到批評的狀態下特別提及貸款的主要原因，是債務償還保險雖然仍然結束，但仍然能夠償還貸款。它可能比契約或借款人在某個時間點預期的情況要少。我們確實預計，而且我之前提到過，降級大多屬於特別提及類別。這是一個非常動態的類別，我們確實看到借款人在調整營運費用或利率確實開始下降時退出該類別。我希望屆時您會看到很多升級。

We currently have no further questions. I will hand back over to Bryan Jordan to conclude.

目前我們沒有進一步的問題。我將把結論交回給布萊恩喬丹。

Thank you, Carla. Thank you, everyone, for joining the call this morning. We appreciate your time and appreciate your interest in our company. Please reach out if you have any further questions or if you need any additional information, we'll be happy to try to help. Hope everyone has a great day.

謝謝你，卡拉。謝謝大家今天早上加入電話會議。感謝您抽出寶貴時間並感謝您對我們公司的興趣。如果您還有任何其他問題或需要任何其他信息，請聯繫我們，我們將很樂意為您提供協助。希望每個人都有美好的一天。

This concludes today's call. Thank you for joining. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。