First of Long Island Corp (FLIC) 2023 Q1 法說會逐字稿

Welcome to the First of Long Island Corporation's first-quarter 2023 earnings conference call. On the call today are Chris Becker, President and Chief Executive Officer; and Jay McConie, Chief Financial Officer.

歡迎來到長島公司 2023 年第一季度收益電話會議。今天的電話會議是總裁兼首席執行官克里斯·貝克爾 (Chris Becker)；和首席財務官 Jay McConie。

Today's call is being recorded. A copy of the earnings release is available on the corporation's website at fnbli.com, and on the earnings call web page at https://www.cstproxy.com/fnbli/earnings/2023/q1.

今天的通話正在錄音中。收益發布的副本可在公司網站 fnbli.com 和收益電話網頁 https://www.cstproxy.com/fnbli/earnings/2023/q1 上獲取。

Before we begin, the company would like to remind everyone that this call may contain certain statements that constitute forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those contained in any such statements, including as set forth in the company's filings with the US Securities and Exchange Commission. Investors should also refer to our 2022 10-K filed on March 9, 2023, for a list of risk factors that could cause actual results to differ materially from those indicated or implied by such statements.

在我們開始之前，公司想提醒大家，本次電話會議可能包含某些構成前瞻性陳述的陳述，這些陳述是根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的。此類陳述受風險、不確定性、以及可能導致實際結果與任何此類聲明中包含的結果大不相同的其他因素，包括公司向美國證券交易委員會提交的文件中所述。投資者還應參考我們於 2023 年 3 月 9 日提交的 2022 年 10-K，以獲取可能導致實際結果與此類聲明所指示或暗示的結果存在重大差異的風險因素列表。

I would now like to turn the floor over to Chris Becker.

我現在想把發言權交給 Chris Becker。

Thank you. Good afternoon, and welcome to the First of Long Island Corporation's earnings call for the first quarter of 2023.

謝謝。下午好，歡迎來到長島公司 2023 年第一季度的第一次財報電話會議。

As mentioned in my remarks, at our recent annual meeting of stockholders, 2023 is proving to be most challenging. After a decade of short-term rates near zero, and 5- and 10-year treasury yields averaging 1.64% and 2.16% respectively, the Fed has driven short-term rates up to 5% over the past 12 months, while 5-year and 10-year treasury yields are in the mid-threes.

正如我在發言中提到的，在我們最近的年度股東大會上，2023 年被證明是最具挑戰性的。在短期利率接近零、5 年期和 10 年期國債收益率分別平均為 1.64% 和 2.16% 的十年之後，美聯儲在過去 12 個月將短期利率推高至 5%，而 5 年期國債收益率10 年期國債收益率處於三分之二的中間位置。

The margins of community and small regional banks generally do not respond well to a 475-basis-point rate shock and big yield curve inversions. Add concerns over recent bank failures and the cost of interest-bearing liabilities is escalating rapidly, and margin compression is generally beyond analyst expectations. With that backdrop, I am pleased to report that our customers have remained loyal, and we have ample liquidity at March 31, 2023.

社區銀行和小型區域性銀行的利潤率通常無法很好地應對 475 個基點的利率衝擊和收益率曲線的大幅倒掛。加上對近期銀行倒閉的擔憂，有息負債的成本正在迅速上升，利潤率壓縮普遍超出分析師預期。在此背景下，我很高興地向大家報告，我們的客戶一直保持忠誠，並且我們在 2023 年 3 月 31 日擁有充足的流動性。

Throughout the turmoil of the first quarter, we are proud that total deposits have held steady, ranging from $3.4 billion to $3.5 billion during the quarter and averaging $3.47 billion. All numbers are in line with total deposits at year-end 2022, with only a $66 million reduction. Checking deposits still represent 35% of total deposits. And we were able to maintain our deposit levels without any increase in broker deposits and minimal increases in CDs.

在整個第一季度的動盪中，我們感到自豪的是，存款總額在本季度保持穩定，從 34 億美元到 35 億美元不等，平均為 34.7 億美元。所有數字都與 2022 年底的存款總額一致，僅減少了 6600 萬美元。支票存款仍佔總存款的 35%。而且我們能夠保持我們的存款水平，而不會增加經紀人存款和 CD 的最小增加。

When we look at deposit betas internally, we focused on cumulative, non-maturity interest-bearing deposit betas. That is the cumulative change in savings now and money market deposits, compared to the cumulative change in Fed funds. Historically, in rising rates, these deposit betas have been plus or minus 35%.

當我們在內部查看存款貝塔時，我們關注的是累積的、非到期的帶息存款貝塔。這是與聯邦基金的累積變化相比，現在儲蓄和貨幣市場存款的累積變化。從歷史上看，在利率上升的情況下，這些存款貝塔值為正負 35%。

Through the end of the first quarter, these deposit betas in the current rate cycle are approximately 28%. One interpretation could be, we are nearing the end of repricing deposits higher. However, our historical tracking of deposit betas does not include a near 500-basis-point rate increase over 12 months, with four consecutive 75-basis-point moves. As a result, we cannot be totally confident that our historical betas will hold in this current rate cycle.

到第一季度末，當前利率週期中的這些存款貝塔約為 28%。一種解釋可能是，我們即將結束對存款進行更高的重新定價。然而，我們對存款貝塔的歷史跟踪不包括 12 個月內近 500 個基點的利率增長，以及連續四次 75 個基點的變動。因此，我們不能完全相信我們的歷史貝塔值將在當前的利率週期中保持不變。

Based on the current pace of deposit rate increases, deposit betas could easily exceed 40%. The banks' uninsured and uncollateralized deposits were 38% of total deposits at March 31, 2023. Our uninsured and uncollateralized deposit levels have been consistent and trending lower over the past couple of years. Many peers that operate in our market have similar ratios of uninsured and uncollateralized deposits, mainly from working with businesses that need amounts greater than $250,000 in their accounts to operate and meet payroll.

根據目前的存款利率上調速度，存款貝塔係數很容易超過 40%。截至 2023 年 3 月 31 日，銀行的無保險和無抵押存款佔存款總額的 38%。我們的無保險和無抵押存款水平在過去幾年中一直保持穩定並呈下降趨勢。在我們市場上運營的許多同行都有類似的無保險和無抵押存款比率，主要來自與需要超過 250,000 美元賬戶金額來運營和支付工資的企業合作。

We believe there's a clear distinction between being a relationship-oriented commercial bank like ours with business customers needing a few million dollars to operate their business, versus a bank that takes in large concentrations of private equity funds earmarked for startups.

我們認為，作為像我們這樣的以關係為導向的商業銀行，其商業客戶需要數百萬美元來經營他們的業務，與一家吸收大量專用於初創企業的私募股權基金的銀行之間存在明顯的區別。

Our monthly net interest margin continues to be impacted by the current environment. Recent monthly margins have been 2.66% in December; 2.45% in January; 2.25% in February; and 2.34% in March. February's numbers are always lower due to the short month. With the Fed still talking about the possibility of higher rates and/or short-term rates remaining high for an extended period, our cost of funds should continue to outpace any increases in the average yield on earning assets through the remainder of 2023. Although, Jay will take you through some specifics that could slow the pace of decrease in the net interest income throughout the remainder of the year.

我們的每月淨息差繼續受到當前環境的影響。 12 月份最近的月度利潤率為 2.66%； 1 月 2.45%； 2月2.25%； 3 月份為 2.34%。由於月份短，二月份的數字總是較低。由於美聯儲仍在談論更高利率和/或短期利率在較長時間內保持高位的可能性，我們的資金成本應該會繼續超過 2023 年剩餘時間內盈利資產平均收益率的任何增長。雖然， Jay 將帶您了解一些細節，這些細節可能會減緩今年餘下時間淨利息收入的下降速度。

Our loan pipeline was $96 million at March 31, 2023. Loan demand was weaker during the first quarter, and our focus this year is skewed towards commercial relationship lending and related deposits. Borrowing at 5% plus to put on commercial or residential mortgages at 5.5% to 6% is not overly enticing to us, especially, on the residential side, when they will just refinance immediately after rates fall.

截至 2023 年 3 月 31 日，我們的貸款渠道為 9600 萬美元。第一季度貸款需求疲軟，我們今年的重點是商業關係貸款和相關存款。以 5% 以上的利率借入 5.5% 至 6% 的商業或住宅抵押貸款對我們來說並不過分誘人，尤其是在住宅方面，利率下降後他們會立即再融資。

The reduction in C&I loans during the quarter was related to lower line utilization, as customers have reacted to higher interest rates in the way they operate their business. New opportunities have increased with the recent disruption in the market. As expected from First of Long Island, credit quality continues to be excellent with non-accruals again at zero on March 31, 2023.

本季度 C&I 貸款的減少與較低的線路利用率有關，因為客戶在其經營業務的方式中對較高的利率做出了反應。隨著最近市場的混亂，新的機會增加了。正如 First of Long Island 所預期的那樣，2023 年 3 月 31 日，信貸質量繼續保持良好，非應計項目再次為零。

Jay McConie will now take you through the first-quarter results. Jay?

Jay McConie 現在將帶您了解第一季度的業績。傑？

Thank you, Chris. While the bank remains liability sensitive at March 31, 2023, management proactively completed two balance sheet reposition transactions during the first quarter to help us reduce our sensitivity to rising interest rates. In March, the bank entered into an interest rate swap to convert $300 million of fixed rate residential mortgage loans to floating rate for a period of three years.

謝謝你，克里斯。儘管該銀行在 2023 年 3 月 31 日仍對負債敏感，但管理層在第一季度主動完成了兩項資產負債表重組交易，以幫助我們降低對利率上升的敏感性。 3 月，該銀行簽訂利率互換協議，將 3 億美元的固定利率住宅抵押貸款轉換為浮動利率，期限為三年。

The bank will pay a fixed rate of 3.82% and receive a floating rate based on the SOFR overnight rate. This transaction was immediately accretive to annual interest income by approximately $2.9 million if rates remain unchanged.

銀行將支付 3.82% 的固定利率，並獲得基於 SOFR 隔夜利率的浮動利率。如果利率保持不變，該交易會立即增加約 290 萬美元的年利息收入。

The bank also sold $149 million in fixed rate municipal securities earning a tax equivalent yield of 3.32% and purchased $135 million of floating rate SBA securities projected to yield 5.38% at the time of purchase. As noted, the bank recognized a $3.5 million pre-tax loss and expects the earn-back to be 1.2 years. This transaction was also immediately accretive to annual interest income by approximately $2.8 million.

該銀行還出售了 1.49 億美元的固定利率市政證券，收益率為 3.32%，併購買了 1.35 億美元的浮動利率 SBA 證券，預計在購買時收益率為 5.38%。如前所述，該銀行確認了 350 萬美元的稅前虧損，並預計盈利為 1.2 年。該交易還立即增加了約 280 萬美元的年利息收入。

The first-quarter results do not reflect a full quarter's benefit of these transactions, since they were executed close to the end of the quarter. These transactions presently help increase interest income and will slow the pace of decline in net interest margin and income.

第一季度的業績並未反映這些交易的整個季度收益，因為它們是在接近季度末時執行的。這些交易目前有助於增加利息收入，並將減緩淨息差和收入的下降速度。

Reversing the decline in net interest income and margin will take time for assets repricing to catch up to liability repricing or until the Federal Reserve Bank reduces short term rates. The interest rate swaps and security reposition in transactions results in loans and security repricing within one year, nearly doubling during the quarter to $813 million or 21% of total securities and loans at March 31, 2023.

扭轉淨利息收入和利潤率的下降趨勢需要時間讓資產重新定價趕上負債重新定價，或者直到聯邦儲備銀行降低短期利率。交易中的利率掉期和證券重新定位導致貸款和證券在一年內重新定價，在本季度幾乎翻了一番，達到 8.13 億美元，佔 2023 年 3 月 31 日證券和貸款總額的 21%。

The bank securities portfolio was $655 million and comprised 16% of total assets at the end of the quarter. The portfolio has a duration of approximately 3.6 years. Approximately 36% of the investment portfolio is comprised of floating rate assets. Bank has the $135 million in SBA floating rates securities with the current yield as of the end of the month of 5.77%, that reprice quarterly off the primary and represent 21% of the investment portfolio. The bank also has $116 million in floating rate corporate bonds with the current yield of approximately 3.84% that repriced quarterly of the 10-year swap rate.

銀行證券投資組合為 6.55 億美元，佔本季度末總資產的 16%。該投資組合的期限約為 3.6 年。大約 36% 的投資組合由浮動利率資產組成。銀行擁有 1.35 億美元的 SBA 浮動利率證券，截至本月底的當前收益率為 5.77%，這些證券每季度重新定價一次，佔投資組合的 21%。該銀行還持有 1.16 億美元的浮動利率公司債券，當前收益率約為 3.84%，按 10 年期互換利率每季度重新定價。

Bank's government agency fixed rate mortgage security portfolio, including CMOs was $260 million and comprised 40% of the investment portfolio. This portfolio has a current yield of approximately 1.85%. The bank expects approximately $50 million of cash flows from the investment securities portfolio in 2023 and will look to reinvest them in higher yielding agency mortgage securities that provide some lockout protection when rates eventually decline. The remaining 24% of the portfolio is invested in tax-exempt municipal bonds that currently yield 3.84%.

銀行的政府機構固定利率抵押貸款證券組合（包括 CMO）為 2.6 億美元，佔投資組合的 40%。該投資組合的當前收益率約為 1.85%。該銀行預計 2023 年投資證券組合的現金流量約為 5000 萬美元，並將尋求將其再投資於收益率更高的機構抵押貸款證券，這些證券在利率最終下降時提供一些鎖定保護。其餘 24% 的投資組合投資於目前收益率為 3.84% 的免稅市政債券。

Our $3.3 billion loan portfolio is comprised of $1.9 billion in commercial real estate loans, $1.2 billion in residential mortgages, and $197 million in commercial and industrial loans. Approximately $560 million or 18% will reprice by March 31, 2024, of which $300 million is related to the interest rate swap transaction previously discussed, and $115 million loans that reprice on a monthly basis such as home equity and C&I loans. We expect approximately $75 million of cash flows from the loan portfolio per quarter.

我們 33 億美元的貸款組合包括 19 億美元的商業房地產貸款、12 億美元的住宅抵押貸款以及 1.97 億美元的商業和工業貸款。到 2024 年 3 月 31 日，將重新定價約 5.6 億美元或 18%，其中 3 億美元與之前討論的利率掉期交易相關，以及按月重新定價的 1.15 億美元貸款，例如房屋淨值和 C&I 貸款。我們預計每季度貸款組合的現金流量約為 7500 萬美元。

The bank expects an additional $178 million or 6% of the loan portfolio reprised from approximately 3.97% to 6.62% from March 31, 2024, to March 31, 2025, based on current market rates. The bank had $383 million in outstanding Federal Home Loan Bank advances with a weighted average cost of 4.31% and an average maturity of 1.3 years at the end of the quarter. The bank has one remaining advance that will mature in 2023. It is for $50 million with the current cost of funds of 2.62%, and will mature on June 1, 2023.

根據當前市場利率，該銀行預計從 2024 年 3 月 31 日到 2025 年 3 月 31 日期間，將有額外 1.78 億美元或貸款組合的 6% 重新定價，從約 3.97% 至 6.62%。該銀行在本季度末有 3.83 億美元的未償還聯邦住房貸款銀行預付款，加權平均成本為 4.31%，平均期限為 1.3 年。該銀行還有一筆將於 2023 年到期的剩餘預付款。金額為 5000 萬美元，當前資金成本為 2.62%，將於 2023 年 6 月 1 日到期。

Federal Home Loan Bank advances decreased $28 million during the quarter. The bank has broker time deposits that totaled $176 million or 5% of total deposits on March 31. That number is the same as year-end 2022. The broker time deposits have a weighted average cost of 3.12% and the average maturity of approximately six months. $85 million or 48% will mature in the second quarter of 2023 with an average cost of funds of 2.61%.

本季度聯邦住房貸款銀行的預付款減少了 2800 萬美元。截至 3 月 31 日，該銀行的經紀人定期存款總額為 1.76 億美元，佔存款總額的 5%。該數字與 2022 年底相同。經紀人定期存款的加權平均成本為 3.12%，平均期限約為 6個月。 8500 萬美元或 48% 將在 2023 年第二季度到期，平均資金成本為 2.61%。

The current reinvestment rate for both Federal Home Loan Bank advances and broker time deposit market is currently between 5% to 5.25%. We expect that a significant portion of our current wholesale borrowings, meaning the Federal Home Loan Bank advances and broker time deposits, will reprice to current markets by -- rates by the end of Q2 2023.

聯邦住房貸款銀行預付款和經紀人定期存款市場的當前再投資利率目前在 5% 至 5.25% 之間。我們預計，到 2023 年第二季度末，我們當前批發借款的很大一部分，即聯邦住房貸款銀行預付款和經紀人定期存款，將按當前市場利率重新定價。

With regard to liquidity, the bank maintains over $1.5 billion in available collateralized borrowing lines with the Federal Home Loan Bank and Federal Reserve Bank. In addition, the bank had over $143 million in cash and unencumbered securities available to be pledged. This liquidity exceeds the $1.3 billion in uninsured and uncollateralized deposits that the bank held at March 31.

在流動性方面，該銀行與聯邦住房貸款銀行和聯邦儲備銀行保持著超過 15 億美元的可用抵押借款額度。此外，該銀行還有超過 1.43 億美元的現金和未支配證券可供質押。這一流動性超過了該銀行 3 月 31 日持有的 13 億美元的無保險和無抵押存款。

The bank had net income of $6.5 million and earnings per share of $0.29 for the first quarter of 2023, compared to $12.1 million or $0.52 per share for the same period in 2022. Bank's return on assets and equity were $0.62 and $0.79 respectively. The key drivers that caused net income to decline were a decrease in net interest income of $4.4 million and the loss on sale of securities of $3.5 million.

該銀行 2023 年第一季度的淨收入為 650 萬美元，每股收益為 0.29 美元，而 2022 年同期為 1210 萬美元或每股收益 0.52 美元。銀行的資產和股本回報率分別為 0.62 美元和 0.79 美元。導致淨收入下降的主要驅動因素是淨利息收入減少 440 萬美元和出售證券損失 350 萬美元。

These two items were partially offset by a decline in income tax expense of $2.5 million, a decrease in the provision for credit losses of $1.5 million. The decline in net interest income of $4.4 million was due to the Federal Reserve Bank increase in short-term rates by over 475 basis points and the inversion of the yield curve. The spread between the 3-month and 10-year US bond is currently inverted over 150 basis points, a level not seen in over 40 years.

這兩項被所得稅費用減少 250 萬美元、信貸損失準備金減少 150 萬美元部分抵消。淨利息收入減少 440 萬美元，原因是聯邦儲備銀行將短期利率上調超過 475 個基點以及收益率曲線倒掛。 3 個月期和 10 年期美國債券之間的利差目前反轉超過 150 個基點，這是 40 多年來從未見過的水平。

The pace of magnitude of these rate increases has caused the cost of our deposits and wholesale funding to increase at a faster pace than the yields on our interest earning assets. Bank's interest expense increased $9.4 million when compared to the prior year quarter and was only partially offset by a $5 million increase in the interest income. Our cost of interest-bearing liabilities increased to 1.96% in the current quarter, an increase of 142 basis points, while our yield on interest earning assets increased 35 basis points.

這些加息的幅度導致我們的存款和批發融資成本的增長速度快於我們生息資產收益率的增長速度。與去年同期相比，銀行的利息支出增加了 940 萬美元，但僅部分被利息收入增加 500 萬美元所抵消。我們的有息負債成本在本季度增加到 1.96%，增加了 142 個基點，而我們的生息資產收益率增加了 35 個基點。

The bank's quarterly non-interest income excluding loss on sales securities was $2.5 million. This result was consistent with expectations and this run rate should continue throughout 2023. Also, consistent with expectations, the bank's non-interest expense was $16.5 million during the first quarter, an increase of $802,000 from the first quarter of last year. The increase was primarily due to an increase in rent expense related to the bank's corporate headquarters facility and higher FDIC insurance expense attributable to higher assessment rates.

該銀行的季度非利息收入不包括銷售證券的損失為 250 萬美元。這一結果符合預期，這一運行率應該會持續到 2023 年。此外，與預期一致，該銀行第一季度的非利息支出為 1650 萬美元，比去年第一季度增加 802,000 美元。增加的主要原因是與銀行公司總部設施相關的租金費用增加以及評估利率較高導致 FDIC 保險費用增加。

We expect non-interest expense to be $16.5 million to $17 million per quarter for the remainder of the 2023. Management is very mindful of expenses during the current environment, and we'll make every effort to keep the run rate towards the lower end of this range in 2023.

我們預計 2023 年剩餘時間內的非利息支出為每季度 1650 萬至 1700 萬美元。管理層非常注意當前環境下的支出，我們將盡一切努力將運行率保持在較低水平這個範圍在 2023 年。

Our capital position remains strong with the leverage ratio of 9.94 at March 31, 2023, and an increase of [11.83] at December 31, 2022. Cumulated and other comprehensive laws of tax improved by $3.8 million or 5.9% since year-end 2022. The bank did not repurchase any shares during the first quarter of 2023, and future repurchases will be decided based on maximizing shareholder value. We still have approximately $15 million authorized under the most recent Board-approved stock repurchase plan.

我們的資本狀況依然強勁，2023 年 3 月 31 日的槓桿率為 9.94，到 2022 年 12 月 31 日增加了 [11.83]。自 2022 年底以來，累計和其他綜合稅法增加了 380 萬美元或 5.9%。該行在2023年第一季度沒有回購任何股份，未來回購將根據股東價值最大化來決定。根據董事會最近批准的股票回購計劃，我們仍有大約 1500 萬美元的授權。

The bank's effective tax rate declined to 9.1% in the first quarter of '23 from 20.6% when compared to the first quarter of 2022. The decline in the effective tax rate is mainly due to an increase in the percentage of pre-tax income derived from the bank's real estate investment trust, municipal securities portfolio, and bank-owned life insurance. We anticipate our tax rate for 2023 to be between 10% to 12%.

與 2022 年第一季度相比，該銀行的有效稅率從 20.6% 下降到 23 年第一季度的 9.1%。有效稅率下降主要是由於稅前收入的百分比增加來自銀行的房地產投資信託、市政證券投資組合和銀行擁有的人壽保險。我們預計 2023 年的稅率將在 10% 至 12% 之間。

With that, I'll turn it back to our operator for questions.

有了這個，我會把它轉回給我們的接線員提問。

Alex Twerdahl, Piper Sandler.

亞歷克斯·特維達爾，派珀·桑德勒。

Good afternoon, guys.

下午好，伙計們。

Hi, Alex.

嗨，亞歷克斯。

First off, Chris, in your prepared remarks, you commented about some opportunities that might be presenting themselves. I was hoping you could expand on that comment just a little bit more?

首先，克里斯，在你準備好的發言中，你評論了一些可能會出現的機會。我希望您能進一步擴展該評論嗎？

I don't have quantifiable numbers on the loan side. We've brought in approximately $15 million in new deposits from Signature Bank and First Republic, specifically. We've been tracking them. And we have opportunities on the credit side lines of credits, term loans, and such that they're looking for a new bank. So, but I don't have total numbers on that.

我在貸款方面沒有可量化的數字。具體來說，我們從 Signature Bank 和 First Republic 帶來了大約 1500 萬美元的新存款。我們一直在跟踪他們。我們在信貸額度、定期貸款等方面有機會，他們正在尋找一家新銀行。所以，但我沒有總數。

Okay. And when you say looking for a new bank, you're talking customers, loan officers, all of the above?

好的。當你說尋找一家新銀行時，你是在談論客戶、信貸員，還是以上所有的人？

We are talking to both people and customers.

我們正在與人和客戶交談。

Okay. And then Jay, you went through a lot of very helpful statistics on the repricing of assets and liabilities over the next 12 months. You went a little bit fast, and I'm certainly going to look back at the transcript for all the details, but kind of boiling it down to the NIM.

好的。然後 Jay，你瀏覽了很多關於未來 12 個月資產和負債重新定價的非常有用的統計數據。你走得有點快，我當然會回顧所有細節的成績單，但有點把它歸結為 NIM。

Is it safe to assume the starting point is really that [2.34%] from March plus about -- I think it was 14 basis points from the deleveraging and the swap transaction, so really close to the [250]. And then it sounded like pressure was going to continue as those liabilities, especially the wholesale stuff, continues to reprice during the quarter. So when you think about the outlook from here, can you just help us boil it down to what the near-term expectation for the NIM is in the second quarter?

可以安全地假設起點真的是 3 月份的 [2.34%] 加上大約 - 我認為這是去槓桿化和掉期交易的 14 個基點，所以非常接近 [250]。然後聽起來壓力將繼續存在，因為這些負債，尤其是批發負債，在本季度繼續重新定價。因此，當您從這裡考慮前景時，您能否幫助我們將其歸結為第二季度對 NIM 的近期預期？

Yeah, I mean, I think you're right on the two transactions. I mean, like we said, it's about $5.7 million. So it's probably like $1.4 million a quarter if interest rates stay flat, right? But for the swap and the SBA floating, if rates go up, obviously, it'd be a little bit more income there.

是的，我的意思是，我認為你對這兩筆交易是正確的。我的意思是，就像我們說的，大約是 570 萬美元。因此，如果利率保持不變，每季度可能約為 140 萬美元，對嗎？但是對於掉期和 SBA 浮動，如果利率上升，顯然，那裡的收入會多一點。

And then I tried to provide you with the wholesale, the Federal Home Loan Bank and the brokerage. Because when you look at that, we feel that when those repriced, what I talked about when you read the transcript, your wholesale for the most part will be pretty much repriced to market by the end of the second quarter, with the full run rate reflected in Q3.

然後我試圖為您提供批發、聯邦住房貸款銀行和經紀業務。因為當你看的時候，我們覺得當那些重新定價時，我在你閱讀成績單時談到的，你的大部分批發將在第二季度末重新定價到市場，以全價運行反映在Q3。

Obviously, if rates continue to go up, they could trend a little bit higher. But the big bulk of the increase stop repricing from 1 to 4.5 has occurred and got that behind us. So to your point, it then leaves the non-maturity deposits where we're doing that on a customer by customer relationship. And it's just when you have deposits that are in the 25 basis points to 1%, customers are coming in with demands per treasuries and money market mutual funds, you take it each time.

顯然，如果利率繼續上漲，它們可能會走高一點。但是，大部分的漲幅停止重新定價從 1 到 4.5 已經發生，並且已經過去了。因此，就您而言，它然後將非到期存款留在我們通過客戶關係對客戶進行處理的地方。只是當你的存款在 25 個基點到 1% 之間時，客戶就會對國債和貨幣市場共同基金提出需求，你每次都會接受。

We currently track our cost of funds on a daily basis and see steady increase and we can project it out, but we're just not comfortable providing further guidance on that. So we just feel that it's going to take a little while for, one, when does the Fed pause? Is May done? Or the PCE just came out with higher rates, so they're talking already maybe potentially June. So do we have one or two?

我們目前每天跟踪我們的資金成本，看到穩步增長，我們可以將其預測出來，但我們不願意就此提供進一步的指導。所以我們只是覺得需要一點時間，一個，美聯儲什麼時候暫停？五月完了嗎？或者 PCE 剛剛公佈了更高的利率，所以他們已經在談論可能是 6 月。那麼我們有一個或兩個嗎？

And the other one is the yield curve. Not a lot of people talking about the inversion, but we have plenty of capital. And one of the things we could do to help alleviate margin compression is leveraging up the balance sheet. But with an inverted yield curve, it makes it very, very difficult to do that because anything that you're borrowing against is at either the same rate or actually lower.

另一個是收益率曲線。談論反轉的人不多，但我們有足夠的資金。為了幫助緩解利潤率壓縮，我們可以做的事情之一就是利用資產負債表。但如果收益率曲線倒掛，則很難做到這一點，因為你借入的任何東西要么利率相同，要么實際上更低。

So we're going to continue to look each quarter at things we did this quarter. Have a bunch of singles, look at our investment portfolio each quarter, see if there's anything we can do, small repositionings to get those closer and closer to market rates and so forth.

因此，我們將繼續關注每個季度我們在本季度所做的事情。有一堆單身人士，每個季度查看我們的投資組合，看看我們是否可以做任何事情，進行小規模的重新定位以使這些利率越來越接近市場利率等等。

We still have the ability to do more floating rate assets, but we think that we're in the eighth or ninth inning, so that if rates go down that that'll kind of help start to hurt. So we're trying to be a little bit more less liability sensitive and get a little closer to neutral.

我們仍然有能力做更多的浮動利率資產，但我們認為我們處於第八局或第九局，所以如果利率下降，那將有點幫助開始受到傷害。因此，我們正試圖降低對責任的敏感度，並更接近中立。

So, but I do agree with what you said, [2.34%], you put those additive and then you have to back out where we're seeing with the wholesale. And then again on the non-maturity, it's just a little bit -- very hard to forecast where it's going to end.

所以，但我確實同意你所說的，[2.34%]，你添加了這些添加劑，然後你必須退出我們在批發市場看到的地方。然後再一次關於非到期，它只是一點點 - 很難預測它會在哪裡結束。

And Alex, as I stated in my remarks, we do feel that our increase in the cost of funds is going to continue to outpace the yield on earning assets, which would lead to some further compression.

亞歷克斯，正如我在發言中所說，我們確實認為我們的資金成本增長將繼續超過盈利資產的收益率，這將導致進一步壓縮。

Right --

正確的 -

We also know, Alex, that loans are down a little bit. But we also realize our pipeline is $96 million. And we understand we want to see that pipeline from here going forward to the end of the year be more flat to -- hopefully, slightly up. And we do realize the need that -- like I talked about the MBSes and the CMOs that are yielding [1.85%], that we have to take that cash flow, get assets on in the 5% -- 4.5%, 5% range with lockout. Because we do think, whether it's six months or 18 months that the yield curve would eventually steepen and -- because it always does, and that the short end will come down.

我們也知道，亞歷克斯，貸款有所下降。但我們也意識到我們的管道是 9600 萬美元。我們知道我們希望看到從這裡到今年年底的管道更加平坦 - 希望略有上升。我們確實意識到需要 - 就像我談到收益率 [1.85%] 的 MBS 和 CMO 一樣，我們必須利用現金流，將資產控制在 5% - 4.5%、5% 的範圍內與鎖定。因為我們確實認為，無論是 6 個月還是 18 個月，收益率曲線最終都會變陡，而且——因為它總是如此，而且短端會下降。

And we need to also take advantage of getting some higher yielding assets on the books. And like Chris said, we're trying to focus more on commercial-type business that have prepayment penalties and investments that have lockout versus residential, because we know that the residential portfolio, once rates come down, don't just refinance literally right away from you. So we're focused on the commercial business.

我們還需要利用在賬面上獲得一些收益更高的資產的機會。就像克里斯所說的那樣，我們正試圖更多地關注有預付款罰款的商業型企業和有鎖定與住宅的投資，因為我們知道住宅投資組合，一旦利率下降，就不會馬上再融資從你。所以我們專注於商業業務。

Yeah. Okay, that's all really helpful. Now, First of Long Island, historically, has been very, very clean on credit. And I don't want to say thrived because it's not necessarily the right word. But when other banks pull back, it's created opportunities for you guys.

是的。好的，這一切都非常有幫助。現在，First of Long Island 從歷史上看，在信用方面一直非常非常乾淨。我不想說繁榮，因為它不一定是正確的詞。但是當其他銀行撤退時，它為你們創造了機會。

Would you say you're starting to see any -- other than the specific stuff you mentioned, Chris, from Signature and First Republic, any additional opportunities on the commercial real estate side or multifamily side in New York City? Certain categories in the city have become a little bit more hot button subjects to investors. Are other banks in a pullback that could create opportunities for you guys?

你會說你開始看到任何 - 除了你提到的具體東西，來自簽名和第一共和國的克里斯，紐約市商業房地產方面或多戶住宅方面的任何其他機會嗎？該市的某些類別已成為投資者的熱門話題。其他銀行的回調是否可以為你們創造機會？

We aren't seeing opportunities. But unfortunately, because of the rates, sometimes the numbers don't work for us and sometimes they don't work for the borrowers. So because they might have to pay down their current outstanding balance to refinance with us if they are coming up on a reset, with another institution.

我們沒有看到機會。但不幸的是，由於利率的原因，有時這些數字對我們不起作用，有時對借款人不起作用。因此，因為如果他們要與另一家機構進行重置，他們可能不得不償還當前的未償餘額以向我們再融資。

So we are looking at a lot of opportunities. But sticking to our underwriting criteria and staying true to who we are, we are being very careful. So that is affecting obviously the pipeline. Because even though we are looking at them, they are not -- looking at them and making the pipeline are two different things for us.

所以我們正在尋找很多機會。但堅持我們的承保標準並忠於我們自己，我們非常謹慎。所以這顯然影響了管道。因為即使我們在看它們，但它們並沒有——看它們和製作管道對我們來說是兩件不同的事情。

Understood. Thank you for taking my questions.

明白了。謝謝你回答我的問題。

Thanks, Alex.

謝謝，亞歷克斯。

Thanks, Alex.

謝謝，亞歷克斯。

Chris O'Connell, KBW.

克里斯·奧康奈爾，KBW。

Good afternoon. Just a little bit of a follow-up on the margin discussion. I understand the factors that are driving the pressure. Given the timing of the transaction late in the quarter and the timing of some of the wholesale repricing, do you expect that the margin regression will be greater in Q2 or in the third quarter on a quarter-over-quarter basis?

下午好。只是對保證金討論的一點跟進。我了解造成壓力的因素。鑑於本季度末的交易時間和一些批發重新定價的時間，您預計第二季度或第三季度的利潤率環比下降幅度更大嗎？

Like I said, I'm not going to give actual guidance on it, but we do think logically as our wholesale repriced the market. And when I'm saying market, Chris, like we have stuff that's been repriced to, let's call it, 4.75%, and then we have some stuff that might be on there at 1.85%. So I'm saying that by the end of Q2, everything has repriced to, call it, the 4.75% to 5% range. So in Q3, you will have a full run rate of wholesale at that kind of higher cost.

就像我說的，我不會給出實際的指導，但我們確實從邏輯上思考，因為我們的批發市場重新定價。當我說市場時，克里斯，就像我們有被重新定價的東西，我們稱之為 4.75%，然後我們有一些東西可能在 1.85%。所以我是說，到第二季度末，一切都已重新定價，稱之為 4.75% 至 5% 的範圍。所以在第三季度，你將以更高的成本獲得批發的完整運行率。

And you would think that then the only thing you have to really focus on is non-maturity deposits in any DDA migration. And you would think that that should start to slow down because you start to have it in your run rate.

你會認為，那麼你唯一需要真正關注的是任何 DDA 遷移中的非到期存款。你會認為這應該開始放緩，因為你開始將它納入你的運行率。

Two things that happen is the 4.75% to 5% current market, six weeks from now is at 5% and 5.25%. I think when we all started at the beginning of this year, we thought that Fed was going to pause. Then we got a couple of bad inflation reports and they've continue to go, and we're starting to see maybe this year is going to be a 100-basis-point increase by June 30.

發生的兩件事是當前市場的 4.75% 至 5%，六週後為 5% 和 5.25%。我認為當我們在今年年初開始時，我們認為美聯儲會暫停。然後我們收到了一些糟糕的通脹報告，而且它們還在繼續，我們開始看到今年可能會在 6 月 30 日之前增加 100 個基點。

And again, it comes to steepness of the yield curve. The short end keeps going up 5% and 5.25%. The 10-year and the 5-year steady is locked in at that 3.5% range. So there are a lot of banks out there that are kind of trying to grow through this, putting on borrowings at 5% or 5.5% in loans or securities at 5.5%, with the hopes that rates then go back and steepen in.

再一次，它涉及到收益率曲線的陡度。短端繼續上漲 5% 和 5.25%。 10 年期和 5 年期穩定利率鎖定在 3.5% 的範圍內。因此，有很多銀行試圖通過這種方式實現增長，以 5% 或 5.5% 的貸款或 5.5% 的證券進行借貸，希望利率隨後回升並趨於陡峭。

We think that's a prudent strategy to a point. So you have to balance that growth with where the Fed. And we have been taking it cautious the first two quarters, so we can get some guidance that the Fed has done, and hopefully, something with the steepness. And that's why it's just very hard to provide any guidance. But high level, I would agree that it should slowly start to dissipate as the wholesale gets locked in.

我們認為這在某種程度上是一種謹慎的策略。所以你必須平衡這種增長與美聯儲的立場。而且我們在前兩個季度一直持謹慎態度，因此我們可以獲得美聯儲已經完成的一些指導，並希望能有一些陡峭的指導。這就是為什麼很難提供任何指導的原因。但高水平，我同意它應該隨著批發鎖定而慢慢開始消散。

Got it. And I think in your prepared remarks, you said there's about $50 million of the securities cash flows for the remainder of 2023. Did you say that you were planning to reinvest those cash flows, or do you plan to let those roll off the balance sheet and help keep the higher cost fundings lower?

知道了。我想在你準備好的發言中，你說 2023 年剩餘時間的證券現金流量約為 5000 萬美元。你是說你打算對這些現金流量進行再投資，還是打算讓這些現金流量從資產負債表中滾出並幫助降低較高成本的資金？

Yeah. I think we're going to try to invest those into [assets] -- I mean, we try to manage both. I think the first half and especially the first quarter was anywhere we could raise liquidity, keeping cash or pay down Federal Home Loan Banks to increase our lines. That was really clearly the focus. Hopefully, after Q1, things have calmed down.

是的。我認為我們將嘗試將這些投資到[資產]——我的意思是，我們試圖同時管理兩者。我認為上半年，尤其是第一季度是我們可以提高流動性、保留現金或償還聯邦住房貸款銀行以增加額度的任何地方。這顯然是重點。希望在第一季度之後，事情已經平靜下來。

And as we can, I think, it's balancing that out, but definitely trying to get more assets on at higher rates, the second half for the inevitable, hopefully decline in interest rates. And then again, it's key that we try to put stuff on that has lockout that gives us maybe two, three-year protection.

我認為，我們可以盡可能地平衡這一點，但肯定會試圖以更高的利率獲得更多資產，下半年是不可避免的，希望利率下降。再一次，關鍵是我們嘗試把東西放在有鎖定的東西上，這可能會給我們提供兩三年的保護。

So it's not just funding costs getting cut that's increasing margin. It's also the fact that we put on higher yielding assets that can be locked in, so balancing that. So I would think you'd start to see a little bit more asset flat or slight growth.

因此，不僅僅是融資成本得到削減，利潤率也在增加。這也是我們投入可以鎖定的更高收益資產的事實，因此可以平衡這一點。所以我認為你會開始看到更多的資產持平或略有增長。

Yeah. Got it. And as far as share repurchases go forward basis, I mean, you guys are -- have pretty robust capital levels here. It sounds like balance sheet growth is going to be fairly flattish to slightly up. How are you guys thinking about utilizing the buyback from here?

是的。知道了。就股票回購而言，我的意思是，你們在這裡擁有相當強勁的資本水平。聽起來資產負債表的增長將相當平穩或略有上升。你們如何考慮利用這裡的回購？

Yeah. So as you know, we didn't do anything in the first quarter as far as share repurchases, and it's really going to be based on opportunity to maximize shareholder value. We're not really given any guidance, and if we're going to have share repurchases or not in the second quarter. We're going to do what we think is best for the company, and quite frankly, that decision hasn't been made yet.

是的。如您所知，就股票回購而言，我們在第一季度沒有做任何事情，這實際上是基於最大化股東價值的機會。我們並沒有真正得到任何指導，以及我們是否要在第二季度進行股票回購。我們將做我們認為對公司最有利的事情，坦率地說，這個決定還沒有做出。

Okay. Got it. And then as far as the expense run rate goes, that's helpful guidance. Does the expense growth -- are things being delayed or put off, and does that normalize or increase as we go into 2024? Or do you guys still think there's opportunities to drive some efficiencies that haven't been explored yet and keep growth fairly low as we go into next year?

好的。知道了。然後就費用運行率而言，這是有用的指導。費用是否增長——事情是否被推遲或推遲，隨著我們進入 2024 年，這種情況會正常化還是增加？或者你們是否仍然認為有機會提高一些尚未探索的效率並在我們進入明年時保持相當低的增長？

Well, as you know, we've generally had a fairly low efficiency ratio and have always maintained the expense control. We don't have high levels of staffing. As a matter of fact, with our branch optimization, we've cut branch staffing levels.

好吧，如您所知，我們的效率通常很低，並且始終保持費用控制。我們沒有高水平的人員配置。事實上，通過我們的分支機構優化，我們已經削減了分支機構的人員配置水平。

So we're looking wherever we can to squeeze out some efficiency. I won't say we're putting off expenses. But we're just being mindful. There are certain things you do at one level that possibly you could do it at a lower level for a year and go back to the normal level the following year. But I wouldn't say we're putting off. I mean, we're operating the bank for the long term, but obviously being mindful of managing expenses this year.

因此，我們正在尋找任何可以提高效率的地方。我不會說我們正在推遲開支。但我們只是在註意。有些事情你在一個水平上做的，可能你可以在較低的水平上做一年，然後在第二年回到正常水平。但我不會說我們正在推遲。我的意思是，我們長期經營銀行，但顯然要注意管理今年的開支。

So Jay gave the guidance. We think we could stay towards that lower end, that [$16.5 million] number, and possibly do a little better than that in a particular quarter. So some of that depends on staffing if there's opportunities. There was questions by Alex earlier about, are we looking at people, if there's opportunities for -- to bring people in that are going to generate deposits for us or good loan business. We'll take those opportunities as they come, as we have in the past. So some of those things are why you can't say exactly, it's going to be here, it's going to be there, because there's always moving pieces.

於是傑給出了指導。我們認為我們可以保持在較低端，即 [1650 萬美元] 的數字，並且可能在特定季度做得更好一點。因此，如果有機會，其中一些取決於人員配備。亞歷克斯早些時候提出的問題是，我們是否在尋找人，如果有機會——讓人們參與進來，為我們創造存款或良好的貸款業務。我們會抓住這些機會，就像我們過去一樣。所以其中一些事情就是為什麼你不能確切地說，它會在這裡，它會在那裡，因為總是有移動的部分。

Great. And last one for me on the tax rate, and some of the factors that are driving that considerably lower this year. Can that range of the 10% to 12% -- do you think that will hold as we go into next year? Or does some of those factors pull back and start to tick up a bit?

偉大的。最後一個是關於稅率，以及導致今年稅率大幅降低的一些因素。 10% 到 12% 的範圍是否可以——您認為這會在我們進入明年時保持不變嗎？或者其中一些因素會回落並開始有所上升嗎？

Yeah. They will slowly -- as we get through this rate increase, and hopefully, it pauses and the yield curve steepens and you start to see margin pickup, it will revert back up to that 20%. It's just temporary, Alex. We have a REIT, most of our loans are in the REIT. We do have loans on the bank's books. And obviously, all the deposit cost is on the bank's books. So basically what happens, as interest expense goes up, there's less income on the bank, more on the REIT. And the dividend income from the REIT to the bank is tax deductible for New York State.

是的。他們會慢慢地——隨著我們經歷這次加息，希望它會暫停，收益率曲線變陡，你開始看到利潤率回升，它將恢復到 20%。這只是暫時的，亞歷克斯。我們有一個房地產投資信託基金，我們的大部分貸款都在房地產投資信託基金中。我們在銀行賬簿上確實有貸款。顯然，所有的存款成本都在銀行的賬簿上。所以基本上會發生什麼，隨著利息支出的增加，銀行的收入減少，房地產投資信託基金的收入增加。 REIT 給銀行的股息收入在紐約州是可以免稅的。

So because the bank only -- you don't really recognize there's a consolidated is smaller, that benefit is a bigger percentage and that's why it's declined so much. So as the banks -- cost of the funds goes down or assets reprice up, you'll see that tick up. But I think it would, just based on where we're at, be a gradual pickup. And as we keep going and we work with our tax consultant, mark them and do projections out, we always do a tax projection on a full year. And as we adjust it, we'll adjust our guidance for you. But I would stay with that 10% to 12% right now.

因此，因為只有銀行——你並沒有真正意識到合併規模較小，所以收益的百分比更大，這就是它下降如此之多的原因。因此，隨著銀行 - 資金成本下降或資產重新定價，你會看到它上升。但我認為，僅根據我們所處的位置，這將是一個漸進的回升。隨著我們繼續前進，我們與我們的稅務顧問合作，標記它們並做出預測，我們總是對全年進行稅收預測。當我們調整它時，我們會為您調整我們的指導。但我現在會留在那 10% 到 12%。

Okay, great --

好的，太好了 -

(multiple speakers) Obviously, where the Fed goes.

（多位發言者）顯然，美聯儲走向何方。

Yeah, got it. Thanks for all the detail, and thanks for taking my questions.

是的，明白了。感謝您提供所有詳細信息，並感謝您提出我的問題。

Okay. Thank you, Chris.

好的。謝謝你，克里斯。

Thank you. This concludes our question-and-answer session. I'll turn the floor back to Chris Becker for some final closing comments.

謝謝。我們的問答環節到此結束。我將把發言權交還給 Chris Becker，請他發表最後的結束評論。

Yeah. Thank you for your attention today and participation on the call. While 2023 performance metrics will not measure up to our historical averages, our deposit bases remain loyal. We have ample liquidity. Our asset quality, always a hallmark of this company, remains strong. And the current management team is proactively making decisions to position the bank for long-term success.

是的。感謝您今天的關注和參與電話會議。雖然 2023 年的績效指標不會達到我們的歷史平均水平，但我們的存款基礎仍然忠誠。我們有充足的流動性。我們的資產質量一直是這家公司的標誌，依然強勁。目前的管理團隊正在積極制定決策，以使銀行取得長期成功。

We look forward to talking to you next quarter. Have a good rest of the day.

我們期待在下個季度與您交談。好好休息一天。