First Interstate Bancsystem Inc (FIBK) 2024 Q1 法說會逐字稿

Good morning, everyone, and welcome to today's First Interstate Bancsystem first quarter earnings conference call.

大家早安，歡迎參加今天的第一州際銀行系統第一季財報電話會議。

(Operator Instructions) Also, todays call is being recorded, and I will be standing by if anyone should need assistance.

（操作員說明）此外，今天的通話正在錄音，如果有人需要幫助，我將隨時待命。

And now at this time, I'd like to turn the call over to Ms. Andrea Walton.

現在這個時候，我想把電話轉給安德里亞·沃爾頓女士。

Please, go ahead ma'am.

女士，請繼續。

Thanks.

謝謝。

Good morning.

早安.

Thank you for joining us for our first quarter earnings conference call.

感謝您參加我們的第一季財報電話會議。

As we begin, please note that the information provided during this call will contain forward-looking statement.

在我們開始之前，請注意，本次電話會議期間提供的資訊將包含前瞻性聲明。

Actual results or outcomes may differ materially from those expressed by those statement.

實際結果或結果可能與這些聲明所表達的結果有重大差異。

I'd like to direct all listeners to read the cautionary note regarding forward-looking statements contained in our most recent annual report on Form 10-K filed with the SEC and in our earnings release, as well as the risk factors identified in the annual report and our more recent periodic reports filed with the SEC.

我想指示所有聽眾閱讀我們向 SEC 提交的最新 10-K 表格年度報告和我們的收益報告中包含的關於前瞻性陳述的警示性說明，以及年度報告中確定的風險因素。提交的定期報告。

Relevant factors that could cause actual results to differ materially from any forward-looking statements are included in the earnings release and in our SEC filings.

可能導致實際結果與任何前瞻性陳述有重大差異的相關因素已包含在收益發布和我們向 SEC 提交的文件中。

The company does not undertake to update any of the forward-looking statements made today.

該公司不承諾更新今天做出的任何前瞻性陳述。

A copy of our earnings release, which contains non-GAAP financial measures is available on our website at fibk.com.

我們的收益發布副本包含非 GAAP 財務指標，可在我們的網站 fibk.com 上取得。

Information regarding our use of the non-GAAP financial measures may be found in the body of the earnings release and a reconciliation to their most directly comparable GAAP financial measures is included at the end of the earnings release for your reference.

有關我們使用非 GAAP 財務指標的資訊可以在收益發布的正文中找到，並且與最直接可比較的 GAAP 財務指標的調整表包含在收益發布的末尾，供您參考。

Joining us from management this morning are Kevin Riley, our Chief Executive Officer; and Marcy Mutch, our Chief Financial Officer, along with other members of our management team.

今天上午，我們的執行長凱文·萊利 (Kevin Riley) 與管理層一起加入我們。我們的財務長 Marcy Mutch 以及我們管理團隊的其他成員。

At this time, I'll turn the call over to Kevin Reilly.

此時，我會將電話轉給 Kevin Reilly。

Kevin?

凱文？

Thanks, Andrea.

謝謝，安德里亞。

Good morning and thanks again to all of you for joining us on our call today.

早安，再次感謝大家今天參加我們的電話會議。

Again, this quarter, along with our earnings release, we have published an updated investor presentation that has some additional disclosures, which we believe would be helpful.

同樣，本季度，在發布收益的同時，我們還發布了更新的投資者演示文稿，其中包含一些額外的披露信息，我們認為這會有所幫助。

The presentation can be accessed on our Investor Relations website.

您可以在我們的投資者關係網站上存取該簡報。

And if you have not downloaded a copy yet, I would encourage you to do so.

如果您還沒有下載副本，我鼓勵您下載。

I'm going to start today by providing an overview of the major highlights of the quarter, and then I'll turn the call over to Marcy to provide more details on our financials.

今天我將首先概述本季度的主要亮點，然後我將把電話轉給馬西，以提供有關我們財務狀況的更多詳細資訊。

We had solid performance in the first quarter with results generally in line or exceeding expectations.

我們第一季的業績表現穩健，整體符合或超出預期。

We generated $58.4 million in net income or $0.57 per share.

我們產生了 5,840 萬美元的淨利潤，即每股 0.57 美元。

At this point, we believe our margin has stabilized and we anticipate that our margin will expand in the second quarter.

目前，我們相信我們的利潤率已經穩定，並且預計我們的利潤率將在第二季擴大。

We continue to focus on controllable expenses and remain pleased with our progress.

我們繼續關注可控費用，並對我們的進展感到滿意。

We recorded $160.2 million in non-interest expense in the quarter, which included a couple of one-time items, and we continue to invest in our [feed] business and processes to generate greater efficiencies.

本季我們記錄了 1.602 億美元的非利息支出，其中包括幾個一次性項目，我們繼續投資於我們的 [飼料] 業務和流程，以提高效率。

Loan demand from our customers is still muted, particularly in our real estate book.

我們客戶的貸款需求仍然疲軟，尤其是在我們的房地產方面。

We remain disciplined in our new loan underwriting and pricing criteria.

我們仍然遵守新的貸款承保和定價標準。

We continue to focus new production in areas where we can develop full bank relationships, which include C&I and small business products.

我們繼續將新產品的重點放在可以發展全面銀行關係的領域，其中包括工商業和小型企業產品。

Our deposit performance was generally in line with expectations with seasonal weaknesses in business deposits.

我們的存款表現大致符合預期，但商業存款出現季節性疲軟。

We also allowed $185 million of fully collateralized high-cost initial deposits to leave the balance sheet.

我們也允許 1.85 億美元的完全抵押高成本初始存款離開資產負債表。

The increase in our interest-bearing deposit costs slowed materially, increasing only 6 basis points quarter-over-quarter.

計息存款成本增幅大幅放緩，季減 6 個基點。

Total funding cost increased 15 basis points, as we expected due to late fourth quarter deposit outflows.

由於第四季末存款流出，總融資成本增加了 15 個基點，符合我們的預期。

We anticipate the second quarter to reflect a flattening of our total cost of funds.

我們預計第二季我們的總資金成本將趨於平緩。

During the quarter, we experienced higher cash flows from our invested portfolio due to a $300 million treasury security maturity.

本季度，由於 3 億美元的國債到期，我們的投資組合現金流量增加。

We reinvested some cash flows early in the quarter, but we generally utilize those funds to support the seasonal and high-cost municipal outflows I just mentioned.

我們在本季度初對一些現金流進行了再投資，但我們通常利用這些資金來支持我剛才提到的季節性和高成本的市政資金流出。

We also acted earlier in the quarter when the market was pricing in more expected rate cuts to extend some of our borrowings at lower rates.

我們還在本季早些時候採取了行動，當時市場消化了更多預期的降息，以較低的利率延長了我們的部分借款。

This includes shifting $1 billion from the FHLB to the bank term funding program at a rate of 4.76%.

這包括以 4.76% 的利率將 10 億美元從 FHLB 轉移到銀行定期融資計劃。

This matures in January of 2025.

該到期日為 2025 年 1 月。

We also extended $1 billion of our remaining FHLB advances with terms of 12 to 18 months.

我們也延長了剩餘 FHLB 預付款中的 10 億美元，期限為 12 至 18 個月。

While we still characterize our balance sheet as modestly liability sensitive.

雖然我們仍然將我們的資產負債表描述為適度的負債敏感型。

We tilt more toward neutral considering these actions, which improved our position in a higher for longer rate environment.

考慮到這些行動，我們更傾向於中性，這提高了我們在較高長期利率環境中的地位。

You'll see that our updated guidance includes an expectation for two rate cuts in 2024 instead of three.

您將看到我們更新的指導意見包括 2024 年降息兩次而不是三次的預期。

However, even considering this reduction in our rate cut expectations, we are reiterating our guidance for NII.

然而，即使考慮到我們降息預期的降低，我們仍重申對 NII 的指導。

Given our profitability and prudent balance sheet management, we continue to see increases in our capital ratios in the first quarter, while also continuing to pay a healthy dividend to our shareholders.

鑑於我們的獲利能力和審慎的資產負債表管理，我們第一季的資本比率持續上升，同時繼續向股東支付健康的股利。

Now I will hand the call off to Marcy to provide some additional details around our first quarter results.

現在我將把電話轉交給馬西，以提供有關我們第一季業績的一些額外細節。

Go ahead, Marcy.

繼續吧，瑪西。

Thanks, Kevin, and good morning, everyone.

謝謝，凱文，大家早安。

As I walk through our financial results, unless otherwise noted, all of the prior period comparisons will be with the fourth quarter of 2023, and I'll begin with our income statement.

當我介紹我們的財務表現時，除非另有說明，否則所有前期比較都將與 2023 年第四季進行比較，我將從我們的損益表開始。

Our net interest income was $200.1 million in the first quarter, a decrease of $7.7 million.

第一季我們的淨利息收入為 2.001 億美元，減少了 770 萬美元。

Our yield on interest-earning assets increased 5 basis points, which was more than offset by a 15 basis points increase in our funding costs.

我們的生息資產收益率增加了 5 個基點，但被融資成本增加 15 個基點所抵銷。

Additionally, there was one less accrual day in the first quarter.

此外，第一季應計日減少了一天。

As Kevin noted, we repositioned our borrowings mix in the quarter, which reduced our borrowing cost by 47 basis points from the prior quarter.

正如 Kevin 所指出的那樣，我們在本季度重新定位了借款組合，這使我們的借款成本比上一季降低了 47 個基點。

This offer partially offset the impact of a higher average level of borrowings in the period.

這項報價部分抵銷了期內平均借款水準較高的影響。

Turning to our net interest margin, in the first quarter, our net interest margin on an FTE basis decreased 8 basis points to 2.93%.

淨利差方面，第一季度，以 FTE 計算的淨利差下降 8 個基點至 2.93%。

Excluding purchase accounting accretion, our net interest margin was 2.84%, a 10 basis points reduction from the prior quarter.

不包括購買會計增值，我們的淨利差為 2.84%，比上一季下降 10 個基點。

Pressure on our margins softened in the period as we saw deposits increase later in the quarter as seasonally expected.

在此期間，我們的利潤率壓力有所緩解，因為我們看到存款在本季稍後出現了季節性預期的增加。

As Kevin mentioned, we believe our margin bottomed in the first quarter and should expand in the second quarter.

正如凱文所提到的，我們相信我們的利潤率在第一季觸底，並應在第二季擴大。

In our construction portfolio, just under $200 million of commercial construction loans funded up in the first quarter and about $500 million of commitments remain.

在我們的建築投資組合中，第一季融資的商業建築貸款接近 2 億美元，還有約 5 億美元的承諾。

We expect the pace of this funding to decelerate in the back half of 2024 and the drag on loan yields to lessen.

我們預計這筆融資的步伐將在 2024 年下半年放緩，對貸款收益率的拖累將會減輕。

Additionally, the moderation in our interest-bearing deposit costs and the slowing mix shift out of non-interest-bearing deposits, further eases margin pressure.

此外，計息存款成本的放緩以及無息存款組合轉移的放緩，進一步緩解了利潤率壓力。

So even with the reduction in our rate cut expectations down to [2], we reiterate our net interest income guidance we gave last quarter.

因此，即使我們的降息預期下修至[2]，我們仍重申上季給予的淨利息收入指引。

This is included in the summary of our guidance that can be found in our investor presentation.

這包含在我們的指南摘要中，您可以在我們的投資者簡報中找到該指南。

Non-interest income was $42 million in the first quarter, a decrease of $2.4 million from the prior period, which was again in line with our expectations.

第一季非利息收入為 4,200 萬美元，較上期減少 240 萬美元，再次符合我們的預期。

The decline from the prior quarter was driven by a $2.9 million gain on the disposition of assets in the fourth quarter.

較上季下降的原因是第四季資產處分收益 290 萬美元。

Our lines of business performed generally in line with expectations, and we continue to make investments into areas such as our treasury services business, which positions us well to add customers and increase our fee-based revenues over time.

我們的業務線表現總體符合預期，我們繼續對資金服務業務等領域進行投資，這使我們能夠隨著時間的推移增加客戶並增加我們的收費收入。

Moving to non-interest expense, we were pleased to report $160.2 million in total non-interest expenses this quarter, a decrease of $5.8 million.

至於非利息支出，我們很高興地報告本季非利息支出總額為 1.602 億美元，減少了 580 萬美元。

There were a few moving parts in that reported number, which included a $1.5 million accrual for the FDIC special assessment and $2 million of OREO expenses.

該報告數字中有一些變動部分，其中包括 FDIC 特別評估的 150 萬美元應計費用和 200 萬美元的 OREO 費用。

These were offset by a $1.1 million reversal of our prior year incentive accrual as well as lower medical claims.

這些被我們上一年激勵應計額逆轉 110 萬美元以及較低的醫療索賠所抵消。

While we are very pleased with our expense performance this quarter, and while we maintain our discipline in this area, the reported number this quarter was marginally lower than what we expect going forward.

雖然我們對本季的費用表現非常滿意，並且我們在這一領域保持了紀律，但本季報告的數字略低於我們對未來的預期。

That said, we have reduced our expense guidance modestly.

也就是說，我們適度降低了費用指導。

This takes into consideration the positive performance from the quarter, while anticipating that quarterly expenses for the remainder of the year will be slightly higher than this quarter's figure.

這考慮到了本季度的積極業績，同時預計今年剩餘時間的季度支出將略高於本季度的數字。

Moving to the balance sheet, loan balances declined $76.8 million in the first quarter, primarily due to expected seasonal declines in our agricultural lines, which were down $73.3 million.

轉向資產負債表，第一季貸款餘額減少 7,680 萬美元，主要是由於我們的農業產品線預期季節性下降，減少了 7,330 萬美元。

We also experienced positive migration out of our construction portfolio as stabilized projects moved into the commercial real estate portfolio.

隨著穩定的專案進入商業房地產投資組合，我們的建築投資組合也出現了積極的遷移。

The construction portfolio declined $217.3 million during the quarter, and the commercial real estate portfolio increased $191.2 million.

本季建築投資組合減少了 2.173 億美元，商業房地產投資組合增加了 1.912 億美元。

On the liability side, total deposits declined $513.1 million.

負債方面，存款總額下降了 5.131 億美元。

Kevin already mentioned the decision we made in the quarter to allow two high-cost fully collateralized municipal deposits totaling $185 million to leave the balance sheet.

Kevin 已經提到了我們在本季度做出的決定，允許兩項總計 1.85 億美元的高成本完全抵押市政存款離開資產負債表。

Excluding this decline, total deposits declined about 1.4% quarter-over-quarter due to normal seasonal declines in our business portfolio.

排除此下降，由於我們業務組合的正常季節性下降，總存款環比下降約 1.4%。

Our seasonality assumptions include increases in business deposits toward the end of the second and into the third quarter.

我們的季節性假設包括第二季末和第三季商業存款的增加。

We expect deposits to increase from March 31 to year end.

我們預計從 3 月 31 日到年底存款將會增加。

As we noted in the investor deck, our deposit base is granular, our non-interest-bearing deposits seem to be stabilizing and we retain a steady mix of business and consumer accounts.

正如我們在投資者平台中指出的那樣，我們的存款基礎很細化，我們的無利息存款似乎正在穩定，並且我們保留了穩定的企業和消費者帳戶組合。

Moving to asset quality.

轉向資產品質。

Our provision totaled $5.3 million in the first quarter.

第一季我們的撥款總額為 530 萬美元。

This comprised of funded provision of $8.4 million with a relief of unfunded provision of $3 million.

其中包括 840 萬美元的資助撥款和 300 萬美元的無資助撥款減免。

The unfunded relief was driven by a continued reduction in off balance sheet commitment.

無資金援助的原因是表外承諾的持續減少。

Net charge-offs were $8.4 million or 18 basis points of loan.

淨沖銷額為 840 萬美元，即貸款 18 個基點。

We saw generally positive trends within the portfolio during the quarter.

本季我們看到投資組合整體呈現正面趨勢。

Criticized loans, which include non-performing loans, decreased $58.3 million or 8.5%, driven by both upgrades and loan payoffs.

在升級和貸款償還的推動下，包括不良貸款在內的批評貸款減少了 5,830 萬美元，即 8.5%。

Non-performing loans increased $63.7 million or 57.2%, primarily due to the movement of a $54.4 million C&I relationship to non-accrual.

不良貸款增加 6,370 萬美元，即 57.2%，主要是由於 5,440 萬美元的 C&I 關係轉為非應計利息。

We have been working closely with this borrower who is taking meaningful actions to stabilize performance.

我們一直與該借款人密切合作，該借款人正在採取有意義的行動來穩定業績。

We are cautiously optimistic about a positive resolution.

我們對積極的解決方案持謹慎樂觀態度。

We also added a disclosure in our investor presentation related to our commercial real estate portfolio.

我們還在投資者介紹中加入了與我們的商業房地產投資組合相關的揭露。

This portfolio is granular and diversified by both property type and geography.

該投資組合根據房地產類型和地理位置進行細化和多元化。

Our most recent cash flow stress testing exercise has reinforced our view that as is well underwritten can support higher rates and that we should expect stable performance.

我們最近的現金流壓力測試活動強化了我們的觀點，即良好的承保可以支持更高的利率，並且我們應該期待穩定的表現。

Overall, our earnings continued to support our strong dividend, this coupled with a reduction in off-balance sheet commitments and a modest reduction in loans drove continued accretion in our capital ratios in the quarter.

總體而言，我們的收益繼續支持我們強勁的股息，再加上表外承諾的減少和貸款的適度減少，推動了本季度我們資本比率的持續增加。

Our CET1 ratio improved 29 basis points to 11.37%.

我們的 CET1 比率提高了 29 個基點，達到 11.37%。

With that, I'll turn the call back to Kevin.

說完，我會把電話轉回給凱文。

Kevin?

凱文？

Thanks, Marcy.

謝謝，馬西。

I am pleased with how we executed in the first quarter and remain optimistic about our performance for the remainder of 2024 and into 2025.

我對我們第一季的表現感到滿意，並對我們 2024 年剩餘時間和 2025 年的表現保持樂觀。

Our strong levels of liquidity and capital provides us with flexibility to respond to market opportunities.

我們強大的流動性和資本水準使我們能夠靈活地應對市場機會。

Our liability repricing has slowed materially, and we anticipate a tailwind from asset repricing in the second half of the year.

我們的負債重新定價已大幅放緩，我們預計下半年資產重新定價將帶來推動作用。

We are well positioned to be able to respond when customers demand begins to rebound.

我們處於有利位置，能夠在客戶需求開始反彈時做出回應。

In the meantime, we will keep enhancing our service to our existing customers and working to add to our customer base.

同時，我們將繼續加強對現有客戶的服務，並努力擴大我們的客戶群。

Our continued stress testing within our loan portfolio gives us confidence that our borrowers are well positioned as loans reprice.

我們對貸款組合的持續壓力測試讓我們相信，我們的借款人在貸款重新定價時處於有利地位。

I'm also pleased with our continued expense discipline while balancing investments in our own infrastructure and systems.

我也對我們在平衡對自己的基礎設施和系統的投資的同時持續的支出紀律感到滿意。

This will allow us to maintain a strong near-term earnings profile while investing in the long-term success of the institution.

這將使我們能夠保持強勁的近期獲利狀況，同時投資於該機構的長期成功。

The strength of our company provides us with the ability to continue attracting new relationships, serving the needs of our existing customers and further enhancing the value of our franchise in the years to come.

我們公司的實力使我們有能力繼續吸引新的關係，滿足現有客戶的需求，並在未來幾年進一步提高我們特許經營的價值。

So with that, I'll open the call up for questions.

因此，我將開始提問。

(Operator Instructions) Andrew Terrell, Stephens.

（操作員說明）Andrew Terrell，Stephens。

Hey, good morning.

嗨，早安。

Good morning, Andrew.

早安，安德魯。

If I could just start on the $54 million C&I loan that was placed on non-accrual this quarter.

如果我能開始使用本季非應計利息的 5,400 萬美元 C&I 貸款就好了。

It sounds like you guys are maybe cautiously optimistic about a positive resolution here.

聽起來你們可能對這裡的積極解決方案持謹慎樂觀的態度。

I was just hoping for maybe some incremental color.

我只是希望能有一些增量的顏色。

Could you share what type of industry this is in and then maybe give us some comfort about the collateral that they could support this relationship?

您能否分享一下這是屬於什麼類型的行業，然後也許可以讓我們對他們可以支持這種關係的抵押品感到一些安慰？

Yes.

是的。

It's a distribution company.

這是一家分銷公司。

It deals with construction, doors and stuff.

它涉及建築、門和其他東西。

It's a sizable company with over $100 million in revenue.

這是一家年收入超過 1 億美元的大型公司。

It had some, I would say, management issues, but what they have done is they have replaced some of the senior management and they have also brought in a consultant which we're working with.

我想說，它有一些管理問題，但他們所做的是更換了一些高階管理層，也引進了一位與我們合作的顧問。

At this point, we feel pretty optimistic that the issues that they have will be resolved and there will be a positive outcome on this company.

在這一點上，我們非常樂觀地認為他們所遇到的問題將會得到解決，而這家公司將會取得積極的成果。

Okay, understood.

好的，明白了。

I appreciate it.

我很感激。

If I could ask from Marcy.

如果我可以問瑪西的話。

I think we previously talked about being comfortably above that kind of 3% level on the core NIM in the back half of this year.

我想我們之前曾討論過今年下半年核心淨利差將輕鬆高於 3% 的水平。

And obviously, it seems like the margins kind of stabilizing and inflecting likely we previously talked about just as you see it today, do you feel like that 3%-plus core NIM in the back half of the year is still in the cards?

顯然，正如您今天看到的那樣，我們之前討論過的利潤率似乎正在趨於穩定和變化，您是否認為今年下半年核心淨利差 (NIM) 超過 3% 的情況仍然存在？

Yes.

是的。

Absolutely.

絕對地。

Okay.

好的。

And then just looking at like the rate curve today, it looks like there's one kind of forward cut baked then.

然後看看今天的利率曲線，看起來當時已經出現了一種遠期下調。

And if we were to take rate cuts off the table, do you think your NII guide would still stay the same for the year?

如果我們不考慮降息，您認為您的 NII 指南今年仍會保持不變嗎？

Or would it impact that -- if we weren't to get rate cuts, would it impact the 3% core NIM?

或者這會影響——如果我們不降息，會影響 3% 的核心淨利差嗎？

I think with some many actions we've taken, Andrew, will restructure somewhere that.

我認為，安德魯，透過我們採取的許多行動，將會在某個地方進行重組。

We'd feel good that our guidance won't really change much if the rate increases, don't come -- rate decrease don't come about because I think we really have restructured the balance sheet for higher for longer.

如果利率不會上升，我們的指引不會真正改變太多，我們對此感到很高興——利率不會下降，因為我認為我們確實已經重組了資產負債表，使其在更長時間內更高。

Okay.

好的。

I appreciate.

我很欣賞。

And then if I can ask just one more on the municipal funding?

那麼我是否可以再問一個關於市政資金的問題？

Could you share kind of the timing of when that occurred throughout the quarter and then what the rate was on the $185 million?

您能否分享一下整個季度發生這種情況的時間以及 1.85 億美元的比率是多少？

Yes.

是的。

So it was over 5% in timing in the quarter.

所以本季的時間安排超過了 5%。

Some kind of -- one was January, and one was March, kind of split [50:50] there.

某種程度－一個是一月，一個是三月，那裡有點分裂[50:50]。

Okay.

好的。

Got it.

知道了。

Thank you for taking the questions.

感謝您提出問題。

Thanks Andrew.

謝謝安德魯。

Chris McGratty, KBW.

克里斯·麥克格拉蒂，KBW。

Good morning.

早安.

Kevin, just following up on the prior question on the C&I credit, the $54 million, where does that rank in terms of like largest relationships?

凱文（Kevin），只是跟進之前關於 C&I 信貸的問題，即 5400 萬美元，就最大的關係而言，它排名第幾？

Or can you help contextualize largest relationship to the bank?

或者您可以幫助了解與銀行最大的關係嗎？

Yeah.

是的。

We only have five relationships over $50 million.

我們只有五個關係超過 5000 萬美元的關係。

So it is one of our larger relationships.

所以這是我們更大的關係之一。

So we are a more granular portfolio, but that's one of our larger relationships.

所以我們是一個更細緻的投資組合，但這是我們更大的關係之一。

Okay, that's perfect.

好吧，那就完美了。

Thanks.

謝謝。

And then just wanted to circle back on the material weakness in the Q. Just any update there in terms of resolution cost and any potential impact that it could have on overall strategy?

然後只想回顧一下問題中的實質弱點。

Thanks.

謝謝。

Yeah.

是的。

So, Chris, we don't expect any costs related to resolving this material weakness.

所以，克里斯，我們預計解決這個重大缺陷不會產生任何相關成本。

You'll see in the Q, we remediated certain parts of the refining unit because it was an aggregation of different issues.

您將在問題中看到，我們修復了煉油裝置的某些部分，因為它是不同問題的集合。

And so, we've remediated about half of them, and the other half is left to be remediated, but we expect to have those wrapped up well within this calendar year.

因此，我們已經修復了大約一半的問題，另一半還有待修復，但我們預計這些問題將在今年內得到很好的解決。

Okay.

好的。

And then based on that, Marcy, it wouldn't affect, I guess, strategic dividends cap use of the capital in your view?

基於此，馬西，我想，在您看來，這不會影響戰略股息限制資本的使用？

No, nothing.

沒什麼。

Absolutely not.

絕對不。

Perfect.

完美的。

Thank you.

謝謝。

Timur Braziler, Wells Fargo.

帖木兒·巴西爾，富國銀行。

Hi, good morning.

早安.

Kevin, your comments about fixed asset reprice at the end of the year.

凱文，您對年底固定資產重新定價的評論。

Can you just remind us to what the magnitude is both on the loans and security side?

您能否提醒我們貸款和擔保方面的規模是多少？

And then just kind of the cadence of that magnitude.

然後就是那種幅度的節奏。

I missed the first part of your question, Timur.

我錯過了你問題的第一部分，帖木兒。

Can you repeat it?

你能重複一下嗎？

Sorry, Kevin, you mentioned the fixed asset repricing benefiting margin trends in the back end of the year.

抱歉，凱文，您提到固定資產重新定價有利於今年年底的利潤率趨勢。

Can you just talk of the magnitude of that both on the securities and loan side and then the cadence as well.

您能否談談證券和貸款方面的規模以及節奏。

Marcy is going to handle that one.

馬西會處理這個問題。

Yeah.

是的。

So the securities side, it's in the slide deck, Timur on page 13.

證券方面，它位於幻燈片第 13 頁的 Timur 中。

We really don't disclose the loan repricing cadence.

我們確實不會透露貸款重新定價的節奏。

But it's in our guidance for

但這是我們的指導方針

--

--

But it is built within the guidance that we give on over our NII.

但它是建立在我們對 NII 提供的指導範圍內的。

Okay, got it.

好，知道了。

And then Marcy, maybe -- do you have the spot rate for deposit costs at quarter end, just to give us a better framework of kind of where that

然後馬西，也許 - 你有季末存款成本的即期利率嗎？

(technical difficulty)

（技術難度）

[You bet].

[你打賭]。

So they were [188] for the quarter and [189] for March (multiple speakers) interest-bearing.

因此，本季的利息為 [188]，三月的利息為 [189]。

That's just interest-bearing, Timur.

那隻是生息，帖木兒。

Okay. got it.

好的。知道了。

And then just one last one for me on the credit conversation, any reserves allocated to that C&I credit?

然後我想問一下關於信貸對話的最後一個問題，是否有分配給 C&I 信貸的準備金？

And then maybe just talk more about the relationship with the growth in non-performing loans versus the allowance ratio and how we should think about the interplay between the two?

然後也許更多地談談不良貸款成長與撥備率之間的關係，以及我們應該如何考慮兩者之間的相互作用？

I'll give you a little bit color the thing.

我會給你一點顏色的東西。

Yeah, we recognize a reserve on that C&I credit and that's baked into the overall reserve.

是的，我們承認 C&I 信貸的儲備金，並將其納入整體儲備金中。

We don't disclose exactly what that would be, but that reserve is baked into the overall reserve in regard to the non-performing -- we feel comfortable where we're at with regards to non-performing loans.

我們沒有具體透露具體金額，但該準備金已納入不良貸款的整體準備金中——我們對不良貸款的現狀感到滿意。

And as we said before, we believe, as we said, when someone in last month that some of these are being restructured and the paydowns.

正如我們之前所說，我們相信，正如我們所說，上個月有人表示其中一些正在重組和支付。

So we still feel that we're in good shape with regards to dealing with the non-performing loans that are there.

因此，我們仍然認為我們在處理不良貸款方面處於良好狀態。

Again, we don't see any systemic issues.

同樣，我們沒有看到任何系統性問題。

We're happy with the improvement in criticized loans.

我們對受批評貸款的改善感到高興。

Overall, we see our credit quality has been stable from here on out and as terms of the reserve, at the level we are we feel adequately reserved for what we're seeing within the portfolio.

總體而言，我們認為我們的信貸品質從現在開始一直保持穩定，就儲備金而言，我們認為對於我們在投資組合中看到的情況有足夠的儲備。

Great.

偉大的。

Thanks for the questions.

感謝您的提問。

Thanks, Timur.

謝謝，帖木兒。

(Operators Instructions) And ladies and gentlemen, it appears we have no further questions this morning, Mr. Reilly, I'll hand things back to you, sir, for any closing comments.

（操作員說明）女士們先生們，看來我們今天早上沒有其他問題了，賴利先生，先生，我將把事情交還給您，以供您發表任何結束意見。

Thank you for your questions today in the call.

感謝您今天在電話中提出的問題。

And as always, we welcome calls from our investors and analysts.

一如既往，我們歡迎投資者和分析師的來電。

Please reach out to us if you have any further follow-up questions.

如果您有任何進一步的後續問題，請與我們聯絡。

Thank you for tuning in today.

感謝您今天的收聽。

Bye.

再見。

Thank you, Mr. Riley.

謝謝你，萊利先生。

Ladies and gentlemen, that will conclude the First Interstate BancSystem first quarter earnings call.

女士們先生們，第一屆州際銀行系統第一季財報電話會議到此結束。

Again, we'd like to thank you all so much for joining us and wish you all a great day.

再次，我們非常感謝大家加入我們，並祝大家有個愉快的一天。

Goodbye.

再見。