Finwise Bancorp (FINW) 2024 Q2 法說會逐字稿

Good afternoon, and thank you for joining us today for FinWise Bancorp second-quarter 2024 earnings conference call. Earlier today, we filed our earnings release and posted to our investor website atinvestors.finwisebancorp.com. Today's conference call is being recorded and webcast on the company's website, investors.finwisebancorp.com.

下午好，感謝您今天參加我們 FinWise Bancorp 2024 年第二季財報電話會議。今天早些時候，我們提交了收益報告並發佈到我們的投資者網站investors.finwisebancorp.com。今天的電話會議正在錄製並在公司網站 Investors.finwisebancorp.com 上進行網路直播。

On today's call management's prepared remarks and answers to your questions may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today. Forward-looking statements represent management's current estimates, expectations and beliefs and FinWise Bancorp assumes no obligation to update any forward looking statements in the future.

在今天的電話會議上，管理層準備好的評論和對您問題的回答可能包含前瞻性陳述，這些陳述存在風險和不確定性，可能導致實際結果與今天討論的結果有所不同。前瞻性陳述代表管理階層目前的估計、期望和信念，FinWise Bancorp 不承擔未來更新任何前瞻性聲明的義務。

We encourage listeners to review the more detailed discussions related to these forward-looking statements contained in the company's earnings press release and filings with the Securities and Exchange Commission. Hosting the call today are Kent Landvatter, CEO; Jim Noone, President; and Bob Wahlman, CFO. With that, I will turn the call over to Kent.

我們鼓勵聽眾查看公司收益新聞稿和向美國證券交易委員會提交的文件中包含的與這些前瞻性陳述相關的更詳細討論。今天主持電話會議的是執行長 Kent Landvatter；吉姆·努恩，總裁；和財務長鮑勃·沃爾曼。這樣，我就把電話轉給肯特。

Good afternoon, everyone. FinWise continued its strong momentum into the second quarter, building on the positive results we achieved in the first quarter. Our performance this quarter was supported by continued growth in loan originations to nearly $1.2 billion, solid revenue and stable credit quality. Importantly, our profitable results were achieved without any contribution from the recently announced new strategic programs and other initiatives highlighting the strength and resiliency of our existing business.

大家下午好。FinWise 在第一季取得的積極成果的基礎上，在第二季度繼續保持強勁勢頭。我們本季的業績得益於貸款發放持續成長至近 12 億美元、穩健的收入和穩定的信貸品質。重要的是，我們的獲利成果是在沒有最近宣布的新策略計劃和其他凸顯我們現有業務實力和彈性的舉措的任何貢獻的情況下實現的。

In addition to our solid quarterly performance, it's worth mentioning the significant progress we have made since our November 2021 IPO in strengthening and diversifying our business, our compliance and risk management, first culture has positioned FinWise as a strong competitor in the fintech lending space. We've also enhanced our product offerings and improved our strategic program lending diversification as the percentage of originations from the top three FinTech programs has declined substantially in the past two years, leading to a more diversified revenue mix.

除了我們穩健的季度業績外，值得一提的是，自2021 年11 月IPO 以來，我們在業務強化和多元化、合規性和風險管理方面取得了重大進展，第一文化使FinWise 成為金融科技貸款領域的強大競爭對手。我們也增強了我們的產品供應，並改善了我們的策略計畫貸款多元化，因為過去兩年來自三大金融科技專案的貸款比例大幅下降，從而實現了更加多元化的收入組合。

Furthermore, our credit quality has performed relatively well, which is a testament to our rigorous underwriting and risk management practices and has led to a diversified and lower-risk loan portfolio. Turning to our Payments Hub initiative, we remain on track to become operational later this year, which should position us well for future growth and revenue diversification. Our capital position remains strong with our bank leverage ratio significantly above well-capitalized regulatory requirements and the peer average. We also continue to execute on our share repurchase program announced last quarter acquiring 44,608 shares for roughly $460,000 in the second quarter.

此外，我們的信貸品質表現相對較好，這證明了我們嚴格的承保和風險管理實踐，並導致了貸款組合的多元化和低風險。談到我們的支付中心計劃，我們仍有望在今年稍後投入運營，這將為我們未來的成長和收入多元化做好準備。我們的資本狀況依然強勁，銀行槓桿率遠高於資本充足的監理要求和同業平均。我們也繼續執行上季宣布的股票回購計劃，第二季以約 46 萬美元的價格收購了 44,608 股股票。

Looking ahead, we remain confident in the strength of our business model and our ability to further expand and diversify our product offerings and revenue streams to enhance long-term growth. We will also continue our efforts to generate operating leverage in 2025 as the significant level of incremental investments we have made in the business to drive future growth start to decelerate. Overall, we remain firmly committed to executing our strategic goals to further enhance long-term value for our shareholders.

展望未來，我們對我們的業務模式的實力以及進一步擴大和多樣化我們的產品供應和收入來源以促進長期成長的能力仍然充滿信心。我們也將繼續努力在 2025 年創造營運槓桿，因為我們為推動未來成長而在業務中進行的大量增量投資開始減速。總體而言，我們仍然堅定致力於執行我們的策略目標，以進一步提高股東的長期價值。

With that, let me turn the call over to Jim Noone, our President.

接下來，讓我把電話轉給我們的總統吉姆·努恩。

Thank you, Kent. I will now provide a bit more detail on originations and credit quality, and then we'll provide an update on our business initiatives.

謝謝你，肯特。我現在將提供有關起源和信用質量的更多詳細信息，然後我們將提供有關我們業務計劃的最新信息。

As Kent mentioned, we're very pleased with another quarter of solid performance in the existing business. Importantly, these results do not include contribution from the recently announced strategic program agreements. We are also pleased with the level of originations we are seeing and although the lending environment could change intra-quarter through the first three weeks of July, originations are tracking at roughly the same rate as the second quarter of 2024.

正如肯特所提到的，我們對現有業務又一個季度的穩健表現感到非常滿意。重要的是，這些結果不包括最近宣布的戰略計劃協議的貢獻。我們對所看到的貸款發放水準也感到滿意，儘管貸款環境可能會在 7 月前三週的季度內發生變化，但貸款發放率與 2024 年第二季度大致相同。

Our SBA 7A loan originations were modestly lower this quarter versus last quarter, and this is the result of a more cautious approach by small business borrowers as widely expected during this period, of elevated interest rates. While we were successful in continuing to grow our SBA portfolio, our newer products, including equipment leasing and owner-occupied commercial real estate loans, continued to gain traction and help to diversify our origination mix during the quarter.

本季我們的 SBA 7A 貸款發放量較上季略有下降，這是小型企業借款人對利率上升採取更加謹慎態度的結果，正如人們普遍預期的那樣。雖然我們成功地繼續擴大了 SBA 投資組合，但我們的新產品，包括設備租賃和業主自用商業房地產貸款，繼續受到關注，並有助於在本季度實現我們的貸款組合多元化。

Turning to our portfolio, we continue to retain substantially all the guaranteed portion of our SBA loans. On a sequential quarter basis. These guaranteed balances increased 4.3%, and were a primary driver of the 6% growth in total loans held for investment. As of the end of Q2, our SBA guaranteed balances and our strategic program loans held for sale, both of which carry lower credit risk, made up 44.6% of our total portfolio, including HFS loans.

談到我們的投資組合，我們繼續保留 SBA 貸款的大部分擔保部分。按連續季度計算。這些擔保餘額增加了 4.3%，是投資貸款總額成長 6% 的主要推動力。截至第二季末，我們的 SBA 擔保餘額和待售策略計畫貸款（兩者信用風險較低）占我們總投資組合（包括 HFS 貸款）的 44.6%。

Moving to credit quality, we are pleased that our disciplined approach continued to serve us well. The provision for credit losses was $2.4 million in the second quarter compared to $3.2 million in the first quarter. The change was driven by continued improvement in net charge-offs compared to the prior quarter. The bank's loss rate in our SBA portfolio has been more than 70% lower than that of the SBA 7A industry as a whole. This is based on loan performance data from the federal government for the period since the bank began its SBA program in 2014.

談到信用質量，我們很高興我們嚴格的方法繼續為我們提供良好的服務。第二季信貸損失撥備為 240 萬美元，而第一季為 320 萬美元。與上一季相比，淨沖銷持續改善推動了這項變革。我們的 SBA 投資組合中該銀行的損失率比整個 SBA 7A 產業的損失率低 70% 以上。這是基於自該銀行 2014 年開始 SBA 計畫以來聯邦政府提供的貸款績效數據。

The net charge-off rate as a percentage of average loans held for investment improved to 1.9% in the second quarter from 3.5% in the first quarter. Importantly, our lower net charge-offs are the result of the decisions we made and began implementing two years ago to purposefully reduce our SP-HFI balances in certain categories, while simultaneously growing the overall portfolio with lower yielding and safer assets, we continue to feel comfortable with this positioning.

淨沖銷率佔平均投資貸款的百分比從第一季的 3.5% 上升至第二季的 1.9%。重要的是，我們較低的淨沖銷是我們兩年前做出並開始實施的決定的結果，目的是有目的地減少某些類別的SP-HFI 餘額，同時以較低的收益率和更安全的資產成長整體投資組合，我們繼續對這個定位感到舒服。

NPL balances ticked up modestly this quarter to $27.9 million versus $26 million in the prior quarter, which was driven by two new relatively small SBA accounts. Importantly, of the $27.9 million, $15.8 million is guaranteed by the federal government. Overall, this is in line with our prior commentary regarding the potential for sporadic additions to our NPL balances. While we remain in a higher interest rate environment.

本季不良貸款餘額小幅上升至 2,790 萬美元，而上一季為 2,600 萬美元，這是由兩個新的相對較小的 SBA 帳戶推動的。重要的是，在 2790 萬美元中，有 1580 萬美元由聯邦政府擔保。總體而言，這與我們先前關於不良貸款餘額可能出現零星增加的評論一致。雖然我們仍處於較高的利率環境。

We remain confident in our portfolio and we are not currently seeing any broad-based negative trends. Our allowance for credit losses as percentage of total loans held for investment remained stable at 3.2%. Our reserve position, the continued positive shift in credit mix. The strong collateral in our SBA loans and our consistent and prudent underwriting standards have all contributed to our solid credit quality, particularly during macro uncertainties.

我們對我們的投資組合仍然充滿信心，目前我們沒有看到任何廣泛的負面趨勢。我們的信貸損失準備金佔投資貸款總額的比例穩定在3.2%。我們的儲備部位、信貸組合持續正向轉變。我們的 SBA 貸款的強大抵押品以及我們一貫審慎的承保標準都有助於我們保持穩定的信貸質量，特別是在宏觀不確定性期間。

Turning to an update on our business initiatives, we are happy to announce that we have delivered ahead of schedule on multiple fintech banking initiatives that we outlined late last year. These include our first payments program. The start of our credit enhanced balance sheet program and now the launch of our first card product. As you may recall, our first payments program was announced with Hank payments at the end of Q1, and we are excited that we have already started to gradually process incoming payments. This is a new source of lower-cost deposits and fee income FinWise.

談到我們業務計劃的最新情況，我們很高興地宣布，我們已經提前交付了去年年底概述的多項金融科技銀行計劃。其中包括我們的第一個付款計劃。我們啟動了信用增強資產負債表計劃，現在推出了我們的第一個卡產品。您可能還記得，我們​​的第一個支付計劃是在第一季末透過 Hank Payments 宣布的，我們很高興我們已經開始逐步處理收款。這是 FinWise 低成本存款和手續費收入的新來源。

Additionally, during Q2 we announced a strategic relationship with planning and with at the start of our credit enhanced balance sheet program. As we mentioned in our first quarter earnings call, we have deepened our relationship with one of our existing strategic lending programs, upstart through a new auto loan product.

此外，在第二季度，我們宣布與規劃以及信用增強資產負債表計劃開始時建立策略關係。正如我們在第一季財報電話會議中提到的，我們透過新的汽車貸款產品加深了與現有策略貸款計劃之一的關係。

And subsequent to quarter end, we also expanded our collaboration with another existing strategic program through the successful launch of our first card program. We have not yet formally announced this program as it is still in the piloting stage but anticipate providing more details later this year. Finally, we remain on schedule to be operational with our payments hub later this year. All of these initiatives represent significant opportunities for FinWise to deepen relationships with fintech programs, diversify our revenue and improve our deposit costs.

季度末後，我們也透過成功推出第一個卡計畫擴大了與另一個現有策略計畫的合作。我們尚未正式宣布該計劃，因為它仍處於試點階段，但預計將在今年稍後提供更多細節。最後，我們的支付中心仍按計劃在今年稍後投入營運。所有這些措施都為 FinWise 提供了深化與金融科技項目的關係、實現收入多元化並提高存款成本的重大機會。

Now I'll turn the call over to our CFO, Bob Wahlman, to provide more detail on our financial results.

現在我將把電話轉給我們的財務長鮑勃沃爾曼 (Bob Wahlman)，以提供有關我們財務表現的更多詳細資訊。

Good afternoon. Thank you, Jim. I will now briefly review some key financial metrics and provide insight as appropriate. In the second quarter, we generated net income of $3.2 million or $0.24 per diluted common share. Average loan balances comprising held for sale and held for investment loans were $449.9 million during the quarter compared to $429.8 million in the prior quarter. This increase was primarily driven by continued growth in our commercial lease programs.

午安.謝謝你，吉姆。我現在將簡要回顧一些關鍵的財務指標並提供適當的見解。第二季度，我們產生了 320 萬美元的淨利潤，即每股稀釋普通股 0.24 美元。本季由持有待售貸款和持有投資貸款組成的平均貸款餘額為 4.499 億美元，而上一季為 4.298 億美元。這一成長主要是由我們的商業租賃項目的持續成長所推動的。

The SBA 7A program and strategic program loans held for sale. Average interest-bearing deposits were $318.9 million compared to $310.7 million in the prior quarter. The sequential quarter increase was driven primarily by an increase in brokered time certificates of deposits.

SBA 7A 計劃和策略計劃貸款待售。平均計息存款為 3.189 億美元，上一季為 3.107 億美元。環比增長主要是由經紀定期存款證的增加所推動的。

Moving to the income statement, net interest income for the quarter was $14.6 million compared to $14.0 million in the prior quarter, driven by increased volumes on loans held for sale and loans held for investment portfolios, partially offset by rate and volume increases on the bank's average balances of certificates of deposits.

轉向損益表，本季的淨利息收入為 1,460 萬美元，而上一季為 1,400 萬美元，這是由於待售貸款和投資組合貸款數量增加所致，部分被銀行利率和數量的增加所抵消。存單平均餘額。

Net interest margin was 10.31% this quarter compared to 10.12% last quarter. The sequential quarter increase was due primarily to increased average balances of loans held for sale associated with partners with interest rates well above our average interest rate, partially offset by slightly lower average yield on our investment loan portfolio and an increase in our cost of funding the growing loan portfolio as competition for deposits continue.

本季淨利差為 10.31%，上季為 10.12%。環比成長主要是由於與利率遠高於我們平均利率的合作夥伴相關的待售貸款平均餘額增加，部分被我們投資貸款組合平均收益率略有下降以及我們融資成本增加所抵消。持續，貸款組合不斷成長。

Non-interest income was $4.8 million in the quarter compared to $5.5 million in the prior quarter. The change from the prior quarter was due primarily to acceleration of servicing fee amortization due to increased payoffs in higher rate SBA loans, positively strategic program fees were up modestly compared to the prior quarter. Noninterest expense in the second quarter was $12.9 million compared to $11.8 million in the prior quarter

本季非利息收入為 480 萬美元，上一季為 550 萬美元。與上一季相比的變化主要是由於高利率 SBA 貸款的回報增加導致服務費攤銷加速，積極的戰略計劃費用與上一季相比略有上升。第二季非利息支出為 1,290 萬美元，上一季為 1,180 萬美元

The sequential quarter change was primarily due to an increase in salaries and employee benefits and other operating expenses as we continued the build-out of our business infrastructure to stand up the new initiatives and enhanced our governance structure. We continue to expect the pace of growth in expenses to slow down in the second half of 2024 as we finish the build-out of our new initiatives. Additionally, as we move into 2025, we also expect incremental headcount related expenses to align more closely with increases in production.

環比季度變化主要是由於我們繼續建立業務基礎設施以支持新措施並增強我們的治理結構，因此薪資和員工福利以及其他營運費用增加。我們繼續預計，隨著我們完成新措施的建設，2024 年下半年支出成長速度將放緩。此外，隨著我們進入 2025 年，我們也預計增量相關費用將與產量的成長更加緊密地結合。

One other item I want to call out, we expect our fully diluted share count to increase modestly in Q3 due to deferred compensation awards that were made in mid second quarter with some made at the tail end of the quarter.

我想指出的另一件事是，由於第二季中期發放的遞延薪酬獎勵（其中一些是在季度末發放的），我們預計第三季完全稀釋後的股票數量將小幅增加。

Finally, our effective tax rate was 23.9% for the second quarter compared to 26.5% in the prior quarter. The change from the prior quarter was due primarily to more favorable resolution of state tax matters than previously estimated. As of now, we expect the effective tax rate for the remaining two quarters of the year to be approximately at the level of the first quarter of 2024.

最後，我們第二季的有效稅率為 23.9%，而上一季為 26.5%。與上一季相比的變化主要是由於州稅務問題的解決方案比之前估計的更為有利。截至目前，我們預計今年剩餘兩季的有效稅率將大致達到2024年第一季的水準。

With that, we would like to open the call for Q&A. Operator.

至此，我們想開始問答環節。操作員。

(Operator Instructions) Liesch, Piper Sandler.

（操作員說明）Liesch，Piper Sandler。

Hey, guys. Good afternoon. The question here on the strategic program yield here. It sounds like a lot higher and it's looking at on average, maybe three percentage points higher. Is this a shift in consumer demand that might continue here? Should it is a good, I guess interest rate to use on an average basis of this product going forward.

嘿，夥計們。午安.這裡的問題是關於戰略計劃產量的。聽起來高很多，平均來看，可能高出三個百分點。消費者需求的這種轉變是否可能持續下去？如果它是好的，我猜想未來該產品的平均利率將使用。

So if you take a look at the long-term trend, I'll answer this question. If you take a look at the long-term trend. Nam has been declining over time as we move to decrease our risk profile by expanding exposure and lower risk loans as we own such as the SBA portfolio. But it's not necessarily smooth and predictable path.

所以如果你看長期趨勢，我會回答這個問題。如果你看一下長期趨勢。隨著時間的推移，隨著我們透過擴大曝險和降低我們擁有的 SBA 投資組合等風險貸款來降低風險狀況，Nam 的表現一直在下降。但這不一定是平坦且可預測的道路。

But the long-term trend is that I think the best indicator until something occurs to disrupted up to disrupt that plan and what we saw in the second -- what we saw in the second quarter appears to be a little bit unexpected behavior by these by two principal on vendors, that may be tied to -- that looks like it is in part tied to the fact that charge-offs went down. So the reversal -- interest receivable on his left because charge-offs are down.

但長期趨勢是，我認為最好的指標是，直到發生一些事情來擾亂該計劃，以及我們在第二季度看到的情況——我們在第二季度看到的情況似乎是這些人的一些意外行為關於供應商的兩個原則，可能與--看起來部分與沖銷下降有關。所以逆轉——應收利息在他左邊，因為沖銷下降了。

Got it. Okay. That's helpful. So really the trend on the margin should be downward if it seems like a nice little benefit that you had in this quarter. Is that the right way to think about it.

知道了。好的。這很有幫助。因此，如果您在本季獲得了不錯的小收益，那麼實際上邊際趨勢應該是下降的。這是正確的思考方式嗎？

Based upon the information we have available. That's why I'm thinking about it. This is probably just an aberration because it's not as smooth that everything goes up. And down on sometimes smaller, sometimes faster.

根據我們掌握的資訊。這就是為什麼我正在考慮這個問題。這可能只是一種偏差，因為一切都不會那麼順利。而且下降有時更小，有時更快。

Got it. And then on expenses, if I back out the SBA servicing adjustment there, about 10% that you've suggested that it's going to the pace of increase is going to slow here in the back half. But is this a good run rate, a good number to build off of going in there or do you think expenses might be a bit lower here in the third quarter?

知道了。然後在費用方面，如果我取消 SBA 服務調整，您所建議的大約 10% 的成長速度將在下半年放緩。但這是否是一個良好的運行率，是一個很好的數字，還是您認為第三季的費用可能會低一些？

So we don't provide official guidance, but I will provide a bit of insight on what we're thinking about the expense trends, I'm estimating that the growth in expenses in Q3 will run about half of what we experienced in the growth in Q2. And then Q4 will run about half of what we experienced in Q3.

因此，我們不提供官方指導，但我將提供一些關於我們對費用趨勢的看法的見解，我估計第三季度的費用增長將約為我們經歷的增長的一半在第二季度。然後，第四季的運行情況將是第三季的一半左右。

I do want to note that a significant portion of the increase that we experienced in Q3 and then the increase experienced in Q4 will be for the full quarter expense carry for new hires that we made in the prior quarter. And you'll see that expense increases driven predominantly by increases in compensation expense.

我確實想指出，我們在第三季度經歷的增長以及第四季度經歷的增長的很大一部分將用於我們上一季度新員工的整個季度費用結轉。您會發現費用增加主要是由薪資費用增加所驅動的。

Got you. Yes, I see that there. All right. Thanks for taking the questions here. I will step back.

明白你了。是的，我在那裡看到了。好的。感謝您在這裡提出問題。我會退後一步。

Andrew Terrell, Stephens.

安德魯·特雷爾，史蒂芬斯。

Hey, good afternoon. Maybe to start for me. It looks like some something about this, right. The dwell times or the hold times on the HFS loan portfolio moved up this quarter. So higher average HFS. loan balances. I know we discussed it a little bit last quarter but is just the right level to think about the HFS. Overall of average balance? Or do you think there's still tweaking you can do on hold times going forward so that we could actually see a lift in the average balance from here? Given a similar level our production.

嘿，下午好。也許從我開始。看起來有些與此有關，對吧。本季 HFS 貸款組合的停留時間或保留時間增加。因此平均 HFS 較高。貸款餘額。我知道我們在上個季度對此進行了一些討論，但這正是考慮 HFS 的正確程度。整體平均餘額？或者您認為未來仍可以調整暫停時間，以便我們實際上可以看到平均餘額從現在開始有所提升？鑑於我們的生產水準相似。

Based upon our current clients and given our level of originations, I think that it's fair to say that this will be about the average run rate on those held for investment, I mean held of sale portfolio.

根據我們目前的客戶並考慮到我們的起源水平，我認為可以公平地說，這將是為投資而持有的平均運行率，我指的是持有的銷售投資組合。

Okay, got it.

好的，明白了。

It will be consistent.

它將是一致的。

Okay. Very good. On the SBA loan servicing line item. I appreciate that color you guys can add there. Just how should we think about I guess, like that normalize moving forward? Does this business step back up to the previous levels. We had seen that line running at top $300,000, $400,000 a quarter?

好的。非常好。關於 SBA 貸款服務行項目。我很欣賞你們可以在那裡添加的顏色。我想我們該如何思考這種正常化的發展？這項業務是否恢復到以前的水平。我們看到這條線每季最高 30 萬美元、40 萬美元？

So what I'm saying, this is the first period where we've had such a significant change or such behavior. I would not anticipate at this point in time. I'm not anticipating that behavior to continue at the level that we saw here in the in the second quarter, I would expect to see that return to a more normalized positive net fees activity.

所以我想說的是，這是我們第一次出現如此重大的變化或這樣的行為。我不會在這個時間點預料到。我預計這種行為不會繼續達到我們在第二季度看到的水平，我預計會看到這種情況回歸到更正常化的正淨費用活動。

Understood. And then just broadly on fee income. I mean, it's really good to hear you guys ahead of schedule in terms of -- some of the newer initiatives that we've spoken about for the past few quarters here. Curious on, you know, did that provide any contribution to the 2Q fee income amount? If so is that a quantifiable amount? And then just how you're thinking about positive progression in terms of fee income recognition throughout the year.

明白了。然後就是大致的費用收入。我的意思是，很高興提前聽到你們在過去幾季討論過的一些新舉措。您很好奇，這對第二季的費用收入金額有貢獻嗎？如果是的話，這是一個可以量化的金額嗎？然後是您如何看待全年費用收入確認的正面進展。

In regards to the effect on the second quarter in these initiatives, pilots and on the new initiatives, as it relates to credit enhanced program, the balance and the activities and those activities are in those products and activities is low at this point in time, expected to build in the future did not have a significant impact at all on the second quarter.

關於這些舉措、試點和新舉措對第二季度的影響，因為它與信貸增強計劃、餘額和活動有關，而這些活動在這些產品和活動中目前處於較低水平，預計未來的建設不會對第第二季產生重大影響。

Yeah. Okay. And then I also wanted to ask just around the charge-off level and just more broadly what you're seeing from a credit standpoint? I mean, you guys have pretty intentionally taken risk out of the balance sheet by diversifying the loan growth for quite a while now, and it seems like it's manifesting itself within charge-offs. I'm just curious like from your seat that did charge-offs come in abnormally low this quarter. Was there anything nuanced we should appreciate. And just more broadly, how you're thinking about charge-offs going forward?

是的。好的。然後我還想問一下沖銷水平以及更廣泛的問題，從信用的角度來看您看到了什麼？我的意思是，你們在相當長的一段時間裡已經有意通過使貸款增長多樣化來消除資產負債表中的風險，而且這似乎在沖銷中得到了體現。我只是很好奇，從你的座位來看，本季的沖銷是否異常低。有什麼值得我們欣賞的細微差別嗎？更廣泛地說，您如何考慮未來的沖銷？

Yes. Hey, Andrew, this is Jim. Basically you hit everything in your statement, right, which is that those lower charge-offs this quarter are the result of decisions we made about two years ago. When we started purposefully reducing no categories of that HFI loan portfolio. And we're simultaneously growing lower yielding and safer assets in the overall portfolio of the bank, and we continue to feel comfortable with our positioning.

是的。嘿，安德魯，這是吉姆。基本上，您擊中了聲明中的所有內容，對吧，本季沖銷額較低是我們大約兩年前做出的決定的結果。當我們開始有目的地減少 HFI 貸款組合的任何類別。我們同時在銀行的整體投資組合中增加低收益和更安全的資產，並且我們仍然對我們的定位感到滿意。

The general trend in NCOs has been downward and stable, but in this quarter was materially lower quarter over quarter. And that's not a level that I would expect in the second half, specifically because SBA is a little chunkier and you didn't see as much of that come through for that product in this quarter.

NCO 的整體趨勢一直穩定下降，但本季環比大幅下降。這並不是我預計下半年會達到的水平，特別是因為 SBA 有點厚重，而且您在本季度沒有看到該產品實現那麼多目標。

Right. Okay. And actually just one more for me. I mean, this is the first quarter, the strategic program, HFI loans are up, I would call it modestly quarter on quarter, but that bucks the trend that we've seen them declining for the past couple of years now, should we read into that at all as you're maybe a little more comfortable in holding specific pieces of credit? Does it -- does it have something to do with some of the new partnership expansions you've talked about or just help us help us think about that strategic program, HFI balances specifically.

正確的。好的。實際上對我來說還只是一件。我的意思是，這是第一季的戰略計劃，HFI 貸款有所增加，我會適度地稱其為季度環比，但這與我們在過去幾年看到的下降趨勢相反，我們應該讀一下因為您可能更願意持有特定的信貸？它是否與您談到的一些新的合作夥伴關係擴展有關，或者只是幫助我們思考該策略計劃，特別是 HFI 平衡。

So that's exactly right like the couple of programs that we had stopped retention with at this point, then numbers are the balances they're so low that as they continue to run off, you're not seeing a material reductions in the overall balance of the HFI portfolio and then the three active programs that we have continue to originate at very stable levels.

因此，這完全正確，就像我們此時停止保留的幾個程序一樣，那麼數字就是餘額，它們是如此之低，以至於隨著它們繼續流失，您不會看到整體餘額的實質性減少HFI投資組合以及我們繼續以非常穩定的水平發起的三個活躍計劃。

So the overall balance in that HFI portfolio has basically now stabilized, right? You're not going to see much and near term either positive or negative changes there none of that. So plenary was our first credit enhanced program and none of the benefit of that program has come through in this quarter, specifically.

那麼 HFI 投資組合的整體平衡現在已經基本穩定了，對嗎？短期內你不會看到太多正面或負面的變化，沒有任何變化。因此，全體會議是我們的第一個信用增強計劃，該計劃的任何好處在本季度都沒有體現出來。

Okay, understood. That's it for me. Thank you for taking the questions.

好的，明白了。對我來說就是這樣。感謝您提出問題。

We do have some questions that we received via e-mail. Juan, would you like to read those out for us?

我們確實有一些透過電子郵件收到的問題。胡安，你願意為我們讀這些內容嗎？

I'm sure we received three questions. You know, the first one, can you clarify how many shares were repurchased in 2Q, '24?

我確信我們收到了三個問題。你知道，第一個問題，你能澄清一下2024年第二季回購了多少股票嗎？

Yes, into the second quarter of '24, we bought 26,911 shares for a total of 44,608 shares or roughly $460,000 through the second quarter.

是的，進入 24 年第二季度，我們購買了 26,911 股，總計 44,608 股，約合 46 萬美元。

Second question is, can you discuss the growth opportunities between your legacy business and the new initiatives?

第二個問題是，您能否討論一下您的傳統業務和新舉措之間的成長機會？

Yeah, sure. Our legacy business is more mature. It's differentiated and will continue to offer a strong foundation for our future growth by adding the payments and cards business. We feel we're strengthening the synergies and diversification of the entire company. And so we've invested a lot also in the compliance and regulatory oversight of that. So we think we're well positioned to further diversify the company.

是的，當然。我們的傳統業務更加成熟。它具有差異化優勢，並將透過增加支付和卡片業務繼續為我們未來的成長提供堅實的基礎。我們認為我們正在加強整個公司的協同效應和多元化。因此，我們在合規和監管方面也投入了大量資金。因此，我們認為我們有能力進一步實現公司多元化。

And the last question is can you discuss the appointment of a new Board member you recently announced?

最後一個問題是，您能否討論一下您最近宣布的新董事會成員的任命？

Oh, sure. Yeah, we're very excited to have Susan Ehrlich join our Board. We've always believed that a key component of effective governance is having a Board with experience and activities of the bank. So this was a natural for us as we enter in this next phase of our evolution. We felt it's important to have expertise in this area, and Susan brings specific FinTech lending and payments experiences as well as experiencing in growing business. So she, I think really supports our philosophy of governance on the Board.

哦，當然。是的，我們非常高興蘇珊·埃利希 (Susan Ehrlich) 加入我們的董事會。我們始終認為，有效治理的關鍵組成部分是擁有具有銀行經驗和活動的董事會。因此，當我們進入進化的下一個階段時，這對我們來說是很自然的。我們認為擁有該領域的專業知識非常重要，蘇珊帶來了特定的金融科技貸款和支付經驗以及業務成長的經驗。所以我認為她確實支持我們董事會的治理理念。

There are no more further questions at this. This will conclude today's conference. Thank you for your participation. You may now disconnect.

至此，沒有更多問題了。今天的會議到此結束。感謝您的參與。您現在可以斷開連線。