First of Long Island Corp (FLIC) 2024 Q1 法說會逐字稿

Welcome to The First of Long Island Corporation’s first quarter 2024 earnings conference call. On the call today are Chris Becker, President and Chief Executive Officer; and Janet Verneuille, Senior Executive Vice President and Chief Financial Officer. 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 webpage at https://www.cstproxy.com/fnbli/earnings/2024/q1.

歡迎參加 The First of Long Island Corporation 的 2024 年第一季財報電話會議。今天參加電話會議的是總裁兼執行長克里斯貝克爾 (Chris Becker)；以及資深執行副總裁兼財務長 Janet Verneuille。今天的通話正在錄音。收益發布的副本可在公司網站 fnbli.com 和收益電話會議網頁 https://www.cstproxy.com/fnbli/earnings/2024/q1 上取得。

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 2023 10-K filed on March 8, 2024, 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根據 1995 年美國私人證券訴訟改革法案安全港條款做出的前瞻性陳述的陳述。此類聲明受到風險、不確定性和其他因素的影響，這些因素可能導致實際結果與任何此類聲明中包含的結果有重大差異，包括公司向美國證券交易委員會提交的文件中所述的結果。投資者還應參閱我們於 2024 年 3 月 8 日提交的 2023 年 10-K，以了解可能導致實際結果與此類聲明所表明或暗示的結果存在重大差異的風險因素清單。

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

我現在想把電話轉給克里斯·貝克爾。

Thank you. Good afternoon and welcome to The First of Long Island Corporation’s earnings call for first quarter of 2024. Just last week we held our Annual Stockholders Meeting and covered a number of key topics of interest. Please visit the Investor Relations page of our fnbli.com website to replay that presentation. It focuses on the key strengths of our organization, the causes of the current earnings challenges, how an improving yield curve can lift performance, and the many benefits of our recent technology upgrades. Focusing on our strengths, capital remains strong at the end of the first quarter with a leverage ratio of 10% and a tangible common equity ratio of 8.9%.

謝謝。下午好，歡迎參加 The First of Long Island Corporation 2024 年第一季財報電話會議。就在上週，我們舉行了年度股東大會，討論了一些大家感興趣的關鍵主題。請造訪我們的 fnbli.com 網站的投資者關係頁面重播該簡報。它重點關注我們組織的主要優勢、當前獲利挑戰的原因、不斷改善的殖利率曲線如何提升業績，以及我們最近技術升級的許多好處。著眼於我們的優勢，第一季末資本依然強勁，槓桿率為10%，有形普通股比率為8.9%。

We had ample liquidity on March 31, 2024, of $1.5 billion with a balance of collateral for potential borrowings at both the Federal Home Loan Bank of New York and the Federal Reserve Bank as we believe both are an appropriate source for day-to-day liquidity needs. The Federal Reserve Bank is working to eliminate the stigma of being the lender of last resort, especially with recent reports and discussions regarding the Federal Home Loan Bank System’s charter of supporting low- and moderate-income housing initiatives verses its role as a primary source of liquidity for banks.

截至 2024 年 3 月 31 日，我們擁有 15 億美元的充足流動性，以及紐約聯邦住房貸款銀行和聯邦儲備銀行潛在藉款的抵押品餘額，因為我們認為這兩家銀行都是日常支出的適當來源流動性需求。聯邦儲備銀行正在努力消除作為最後貸款人的恥辱，特別是最近關於聯邦住房貸款銀行系統支持低收入和中等收入住房計劃的章程及其作為貸款機構的角色的報告和討論。 。

Our C&I loans, including owner-occupied commercial mortgages, increased 6% since year-end and we are encouraged by recent activity that is not yet reflected in our March 31, 2024, loan pipeline of $113 million, up from $86 million at year-end 2023. Our credit quality remained rock solid through March 31, 2024, with charge-offs, non-performing loans and past-due loans remaining at single-digit basis points as a percentage of total loans.

我們的工商業貸款（包括自住商業抵押貸款）自去年年底以來增加了6%，我們對近期活動感到鼓舞，但尚未反映在我們截至2024 年3 月31 日的1.13 億美元貸款管道中，高於去年的8,600 萬美元。截至 2024 年 3 月 31 日，我們的信貸品質仍堅如磐石，核銷、不良貸款和逾期貸款佔貸款總額的百分比仍維持在個位數基點。

Non-interest income had a good first quarter and was slightly ahead of our guidance of $2.6 million per quarter in 2024. Non-interest expense was slightly below our guidance of $6.25 million per quarter in 2024. We have a new technology platform to support future growth. We are opening our fourth branch on the East End of Long Island during the second quarter of this year, continuing our growing momentum in that area. And we are staying disciplined in a difficult environment. We do not bend on credit quality. We focus on adding one relationship banker at a time and look to build long-standing relationships. Our deposit base has a history of being loyal through good and bad news in the banking world and we want to keep it that way.

第一季非利息收入表現良好，略高於我們 2024 年每季 260 萬美元的指引。非利息支出略低於我們 2024 年每季 625 萬美元的指引。我們擁有一個新技術平台來支持未來的成長。我們將於今年第二季在長島東區開設第四家分店，繼續在該地區的成長勢頭。我們在困難的環境中保持紀律。我們不會在信用品質上妥協。我們專注於一次增加一名關係銀行家，並尋求建立長期的關係。我們的存款基礎歷來對銀行界的好消息和壞消息都保持忠誠，我們希望保持這種狀態。

As anticipated, our net interest margin was lower in the first quarter of 2024. The drop was largely related to our average funding mix as approximately $100 million shifted from average deposits to average wholesale funds when comparing the first quarter of 2024 to the fourth quarter of 2023. We also had $62.5 million of wholesale funding reprice from a weighted average cost of 1.36% to 4.78%. Regarding the drop in deposits, during the fourth quarter of 2023, $34.2 million in tax escrow deposits were used to make real estate tax payments and municipal deposits were down $97.5 million. Escrow deposits build back throughout the year as monthly loan payments are received.

如預期，2024 年第一季我們的淨利差較低。這一下降很大程度上與我們的平均融資組合有關，因為與 2024 年第一季和 2023 年第四季相比，大約 1 億美元從平均存款轉移到平均批發資金。我們還有 6,250 萬美元的批發融資重新定價，加權平均成本從 1.36% 降至 4.78%。關於存款下降，2023年第四季度，3,420萬美元的稅收託管存款用於繳納房地產稅，市政存款減少了9,750萬美元。隨著每月收到貸款付款，託管存款全年都會增加。

Municipal deposits were $46.6 million higher at March 31, 2024, when compared to the linked quarter. The fluctuations in tax escrow and municipal deposits are common for our bank in the fourth quarter. Real estate tax payments are made every year in the fourth quarter and municipal deposits have been down in the fourth quarter four of the last five years by an average of $54.4 million. Our commercial and consumer relationship deposits remained stable and non-interest-bearing checking deposits were 33% of total deposits at the end of the first quarter.

截至 2024 年 3 月 31 日，市政存款較上一季增加 4,660 萬美元。第四季度稅務託管和市政存款的波動對我行來說是常見的。每年第四季都會繳納房地產稅，過去五年中第四季市政存款平均減少了 5,440 萬美元。商業及消費關係存款維持穩定，第一季末無利息支票存款佔存款總額的33%。

Please note that while average deposits were lower during the quarter, quarter-end deposits were higher than year-end 2023 by over $55 million. As of the end of the first quarter, there are no significant tranches of wholesale funding, including any brokered CDs, that are not at or close to market rates. Our retail CDs maturing over the next twelve months are largely at current market rates, especially after approximately $87 million in maturities in April and May that are paying very close to 4% and are expected to reprice at an estimated 50 basis points to 70 basis points higher.

請注意，雖然本季平均存款較低，但季末存款比 2023 年底高出超過 5,500 萬美元。截至第一季末，沒有大量批發資金（包括任何經紀 CD）未達到或接近市場利率。我們未來12 個月到期的零售CD 大部分以當前市場利率計算，特別是在4 月和5 月到期的約8,700 萬美元之後，其利率非常接近4%，預計將以估計50 個基點至70 個基點的價格重新定價較高。

Barring any significant changes in our funding mix or short-term rates moving higher, we believe our margin should be at the bottom. We expect it will fluctuate within a narrow band for the remainder of 2024. Although, continued improvement in our funding mix or a more favorable yield curve may improve margin in the second half of the year. Janet Verneuille will now take you through financial highlights of the first quarter. Janet.

除非我們的融資組合發生重大變化或短期利率走高，否則我們相信我們的利潤率應該處於底部。我們預計 2024 年剩餘時間它將在窄幅區間內波動。儘管如此，我們的融資組合的持續改善或更有利的殖利率曲線可能會提高下半年的利潤率。Janet Verneuille 現在將帶您了解第一季度的財務亮點。珍妮特。

Thank you, Chris. Good afternoon, everyone. the company recognized net income of $4.4 million for first quarter of 2024, down from $6.5 million in the first quarter of 2023. The decrease was largely attributed to lower net interest income of $5.5 million, a $1.1 million credit provision for loan losses in 2023, partially offset by the loss on sale of securities of $3.5 million in the first quarter of 2023. Net income was also down $6.1 million in the linked quarter. That decrease was mainly the result of lower net interest income of $1.8 million and an increase in salaries and employee benefits of $1.9 million, due to the reversal of incentive accruals taken in the linked quarter.

謝謝你，克里斯。大家下午好。該公司確認 2024 年第一季淨利潤為 440 萬美元，低於 2023 年第一季的 650 萬美元。下降的主要原因是淨利息收入減少了 550 萬美元，2023 年貸款損失信貸準備金為 110 萬美元，部分被 2023 年第一季 350 萬美元的證券銷售損失所抵銷。相關季度的淨利潤也下降了 610 萬美元。這一下降主要是由於淨利息收入減少 180 萬美元，以及由於相關季度應計激勵措施的逆轉而導致工資和員工福利增加 190 萬美元。

After excluding the loss on the sale of securities in 2023, non-interest income of $2.8 million exceeded non-interest income recorded in the first quarter of 2023 of $2.5 million. The quarters non-interest income also exceeded the linked quarter of $2.4 million. Better service charge income on deposit accounts and BOLI income helped in both quarter comparisons. Non-interest expense totaled $16.2 million which is a decline of $365,000, or 2.2%, compared to the first quarter of 2023.

在扣除2023年出售證券的損失後，非利息收入為280萬美元，超過了2023年第一季記錄的非利息收入250萬美元。該季度的非利息收入也超過了上一季的 240 萬美元。存款帳戶的服務費收入和 BOLI 收入的改善對兩個季度的比較都有幫助。非利息支出總計 1,620 萬美元，比 2023 年第一季減少 365,000 美元，即 2.2%。

The linked quarter had a lot of noise related to the reversal of incentive accruals, so the comparison is not as meaningful. Gross loans declined $11.5 million from the prior quarter end, mainly related to $21.2 million of amortization and other paydowns of residential mortgages and home equity lines. This decline was offset by continued growth in our commercial portfolios as Chris mentioned. The overall loan yield of 4.14% was up 5 basis points from the linked quarter. Loan yield for the first quarter of 2023 was 3.70%.

關聯季度有很多與應計獎勵逆轉相關的噪音，因此比較沒有意義。總貸款較上季末下降 1,150 萬美元，主要與住宅抵押貸款和房屋淨值額度的攤銷和其他還款額 2,120 萬美元有關。正如克里斯所提到的，這種下降被我們商業投資組合的持續成長所抵消。整體貸款收益率為 4.14%，較上季上升 5 個基點。2023年第一季的貸款收益率為3.70%。

Total deposits increased $55.5 million from year end. The mix of the deposits continues to change as customers move out of non-interest-bearing checking accounts and into interest bearing alternatives. As Chris mentioned, average deposits were down approximately $100 million from the linked quarter. The average cost of deposits was 2.64% for the first quarter of 2024, 2.43% for the linked quarter, and 1.40% for first quarter of 2023. Other borrowings averaged $523.1 million for the first quarter as the drop in deposits was supplemented partially by these advances.

存款總額較年底增加 5,550 萬美元。隨著客戶從無息支票帳戶轉向有息替代帳戶，存款的結構不斷改變。正如 Chris 所提到的，平均存款較上一季下降了約 1 億美元。2024年第一季的平均存款成本為2.64%，上一季為2.43%，2023年第一季為1.40%。第一季其他借款平均為 5.231 億美元，這些預付款部分補充了存款的下降。

The average cost of these borrowings was 4.82% in the first quarter of 2024, 4.59% in the linked quarter, and 3.79% in the first quarter of 2023. Net interest income and the net interest margin for the first quarter reflects the challenges described above. The purchase of the fixed to floating swap, and the repositioning of a portion of the investment securities portfolio in the first quarter of 2023 continued to positively impact the income statement above the line. Yet the pace of the repricing of the liability side of the balance sheet continued to outpace the repricing of the assets on the balance sheet.

2024 年第一季這些借款的平均成本為 4.82%，上一季為 4.59%，2023 年第一季為 3.79%。一季度淨利息收入和淨利差反映了上述挑戰。2023年第一季購買固定浮動掉期以及部分投資證券組合的重新定位繼續對線以上損益表產生正面影響。然而，資產負債表負債方重新定價的速度繼續超過資產負債表資產重新定價的速度。

Net interest income for first quarter of 2024 declined $1.8 million from the linked quarter and $5.5 million from the first quarter of 2023. The net interest margin calculated to 1.79% in the first quarter of 2024, 2.0% in the linked quarter, and 2.34% in the first quarter of 2023. The yield on total earning assets was 4.10% in the first quarter of 2024, 4.0% in the linked quarter, and 3.61% in the first quarter of 2023. Cost of total interest-bearing liabilities is 3.47% in the first quarter of 2024, 3.15% in the linked quarter, and 1.96% in the first quarter of 2023. No provision was booked to the Allowance for Credit Losses during the quarter.

2024 年第一季的淨利息收入較上一季下降 180 萬美元，較 2023 年第一季下降 550 萬美元。經計算，2024年第一季淨利差為1.79%，上季為2.0%，2023年第一季為2.34%。2024 年第一季總獲利資產收益率為 4.10%，上一季為 4.0%，2023 年第一季為 3.61%。2024年第一季有息負債總額成本為3.47%，較上季為3.15%，2023年第一季為1.96%。本季未計入信貸損失準備金。

The Commercial Real Estate market remains under heightened scrutiny, especially in the New York metropolitan area, in the wake of credit problems disclosed by New York Community Bank at year-end 2023. Although the New York State Housing Stability and Tenant Protection Act passed in 2019, most recently the ripple impact of the legislation is negatively affecting the rent regulated multifamily real estate market in the New York metropolitan area.

在紐約社區銀行於 2023 年底披露信貸問題後，商業房地產市場仍然受到嚴格審查，尤其是在紐約大都會區。儘管《紐約州住房穩定和租戶保護法案》於 2019 年通過，但最近該立法的連鎖反應正在對紐約大都會區受租金監管的多戶房地產市場產生負面影響。

Management has provided detailed disclosures on our CRE portfolio including our multifamily portfolio in an 8K furnished on March 1, 2024, and in our recent Annual Meeting presentation. We believe the credit quality of the loan portfolio remains strong. The reserve coverage ratio on March 31, 2024, is 88 basis points compared to 89 basis points at year-end 2023.

管理層已詳細披露了我們的 CRE 投資組合，包括 2024 年 3 月 1 日佈置的 8K 多戶住宅投資組合以及我們最近的年會演示。我們相信貸款組合的信貸品質依然強勁。2024年3月31日的準備金覆蓋率為88個基點，而2023年底為89個基點。

Book value per share was $16.78 on March 31, 2024, versus $16.43 on March 31, 2023. The accumulated other comprehensive loss component of stockholders’ equity is mainly comprised of a net unrealized loss in the available-for-sale securities portfolio due to higher market interest rates. The company repurchased shares during the first quarter of 2024 at a cost of $2 million and the Bank declared its quarterly cash dividend of $0.21 per share. The effective tax rate for the first quarter of 2024 was 6.2% as the tax-advantaged assets of loans in our REIT subsidiary, municipal bonds and BOLI were a larger portion of taxable income during the quarter. With that I turn it back to our operator for questions.

2024 年 3 月 31 日每股帳面價值為 16.78 美元，而 2023 年 3 月 31 日為 16.43 美元。股東權益累計其他綜合損失部分主要由可供出售證券投資組合因市場利率上升而產生的未實現淨損失組成。該公司在 2024 年第一季以 200 萬美元的價格回購了股票，該銀行宣布季度現金股利為每股 0.21 美元。2024 年第一季的有效稅率為 6.2%，因為我們的 REIT 子公司貸款、市政債券和 BOLI 的稅收優惠資產在本季應稅收入中所佔比例較大。然後我將其轉回給我們的接線員詢問問題。

Alex Twerdahl, Piper Sandler.

亞歷克斯·特沃達爾，派珀·桑德勒。

Hey. Good afternoon.

嘿。午安.

Good afternoon, Alex.

下午好，亞歷克斯。

Good afternoon.

午安.

First on the loan outlook, Chris, you talk a little bit about the commercial loan growth you saw this quarter and that pipeline building. It's still, however, a pretty small percentage of the overall pie. So I was hoping maybe you can just help us frame sort of the opportunity and the outlook for that, the commercial portfolio overall, and where you think it over time might eventually get to as a percentage of the overall loan book.

首先是關於貸款前景，克里斯，您談到了本季的商業貸款成長以及管道建設。然而，它仍然只佔整個蛋糕的一小部分。因此，我希望您可以幫助我們建立整體商業投資組合的機會和前景，以及您認為隨著時間的推移，它最終可能佔整個貸款帳簿的百分比。

So the commercial -- well, let's break it down, right? The CNI portfolio and owner-occupied portfolio was at 11% of the total portfolio. And then obviously we have the commercial real estate portfolio, which is over half of the portfolio. So we like -- we certainly -- we're happy with the size of where the commercial real estate portfolio is. We still want that piece of the pie in the residential side, which is still over 35% of the portfolio to come down. And the CNI and owner-occupied piece is the piece we want to grow.

那麼廣告——好吧，讓我們來分解一下，對吧？CNI投資組合和自住投資組合佔總投資組合的11%。顯然我們還有商業房地產投資組合，佔投資組合的一半以上。因此，我們對商業房地產投資組合的規模感到滿意。我們仍然希望住宅方面的份額下降，該部分仍佔投資組合的 35% 以上。CNI 和自住部分是我們想要發展的部分。

If I could -- if I can look forward and look at that pie, I'd love to see four equal slices. I'd love to see about 25% in multifamily, about 25% in other CRE, about 25% in residential, and about 25% in CNI and owner-occupied. But it's going to take some time for the CNI and owner-occupied to get there. And when I say some time, you're talking years, not months, but that's certainly the direction we're moving. And we've just hired another middle market lenders. We've grown our middle market team over the past four years. And some activities picking up there. You see our pipeline is up a little bit quarter over quarter.

如果可以的話，如果我可以向前看，看到那個餡餅，我很想看到四個相等的切片。我希望看到約 25% 為多戶住宅，約 25% 為其他商業地產，約 25% 為住宅，約 25% 為 CNI 和自住住宅。但 CNI 和自住業主需要一些時間才能實現這一目標。當我說某個時間時，你說的是幾年，而不是幾個月，但這肯定是我們前進的方向。我們剛聘請了另一家中間市場貸款機構。在過去的四年裡，我們不斷壯大我們的中端市場團隊。一些活動在那裡開展。您會看到我們的管道比上季略有增加。

And we want to keep growing that. But the activity has been quiet. The rates are obviously impacting that. Some of the -- on the real estate side, commercial real estate side, we're seeing some opportunities from other banks, but quite often the loans have to be right sized because of the current interest rate environment. And not everybody's willing to do that, so it does remain challenging out there. And that's why you see very low growth rates in the industry and some banks shrinking a little bit.

我們希望繼續發展這一點。但活動一直很平靜。利率顯然對此產生了影響。其中一些——在房地產方面、商業房地產方面，我們看到了其他銀行的一些機會，但由於當前的利率環境，貸款的規模通常必須適當。並不是每個人都願意這樣做，所以它仍然具有挑戰性。這就是為什麼你會看到該行業的成長率非常低，並且一些銀行略有萎縮。

Yeah. Then that makes sense. I mean, as you kind of think about those four equal slices over time, I totally get it, it's going to take a while to get there, do you see it kind of being sort of a flattish overall loan book, or is the overall loan book grow as well? And I guess when you think about loan growth for this year and the pipelines and the opportunities, are they sufficient to keep the loan book at a current level, just running against that amortization and the payoff activity that you alluded to earlier in the call?

是的。那麼這是有道理的。我的意思是，當你隨著時間的推移考慮這四個相等的部分時，我完全明白，需要一段時間才能到達那裡，你是否認為它是一種扁平的整體貸款簿，或者是整體貸款賬簿也增長嗎？我想，當您考慮今年的貸款成長、管道和機會時，它們是否足以將貸款帳簿保持在當前水平，而僅與您在電話會議之前提到的攤銷和還款活動相抵觸？

I think so. We're still thinking low single-digit growth for the year, even though we were down a little bit in the first quarter and mainly related to payoffs in the residential portfolio, not in the commercial side. So when you look at our pipeline numbers that we talk about in our earnings calls and, or state in our press -- or our earnings releases, depending on where we talk about them, and then you look at what we close in a quarter, the numbers are much more in line with each other.

我想是這樣。我們仍然認為今年的成長將是低個位數，儘管我們在第一季略有下降，並且主要與住宅投資組合的回報有關，而不是商業方面的回報。因此，當你查看我們在財報電話會議中談論的管道數字時，或者在我們的媒體中陳述的管道數字時，或者我們的財報發布中，這取決於我們談論它們的地方，然後你看看我們在一個季度內關閉的產品，這些數字彼此更加一致。

And I think every bank decides how to disclose their pipeline numbers a little bit differently. I hear pipeline numbers of some banks that are very large, but then when I see closings for the quarter, they're not very large. And there seems to be, to me, a little bit of disconnect, but I just think that's the way everybody looks at it. When we look at our pipeline, we look at, obviously, loans that are approved and ready to close and we look at LOIs that are signed and agreed upon. And we've already vetted those credits closely, and they have a very high probability of getting to closing. So I think looking at our number, which is probably a little bit more on the conservative side, the way we report it, is probably why it looks maybe a little bit lower than some others.

我認為每家銀行決定如何揭露其管道數量的方式都略有不同。我聽說一些銀行的管道數量非常大，但當我看到本季的關閉數量時，它們並不是很大。對我來說，似乎存在一點脫節，但我只是認為每個人都是這樣看待它的。當我們查看我們的管道時，顯然，我們會查看已批准並準備關閉的貸款，以及已簽署和商定的意向書。我們已經仔細審查了這些信用，它們完成交易的可能性非常高。因此，我認為看看我們的數字，我們報告的方式可能會更加保守，這可能是為什麼它看起來比其他一些數字要低的原因。

Okay. Understood. Thanks for that, color. I think, Janet, as you're going through some of the repricing on the borrowing and sort of what new stuff's coming on today, and you kind of look at it against the securities portfolio, I mean, it's clear that there's some, you know, less efficient leverage on the balance sheet today that I know is not necessarily going to be super cheap to get out of, but you have a pretty healthy capital position. So as you think about using capital today, how do you weigh some restructuring either similar to what you did last year or something else, to kind of get rid of some of that leverage that maybe is upside down right now?

好的。明白了。謝謝你，顏色。我認為，珍妮特，當你正在經歷一些借款的重新定價以及今天出現的新事物時，你會根據證券投資組合來看待它，我的意思是，很明顯有一些，你我知道，今天資產負債表上效率較低的槓桿不一定會非常便宜，但你擁有相當健康的資本狀況。因此，當您今天考慮使用資本時，您如何權衡一些類似於去年或其他方式的重組，以擺脫目前可能顛倒的一些槓桿？

We have modeled various scenarios out. We usually look at the payback period to see if it makes sense. We will consider, you know, as we go forward and we have some room with liquidity, maybe putting some investment securities on. But for the first quarter, it just didn't make sense.

我們已經模擬了各種場景。我們通常會查看投資回收期，看看它是否有意義。你知道，我們會考慮，隨著我們的前進，我們有一些流動性空間，也許會投入一些投資證券。但對於第一季來說，這是沒有意義的。

The year-end back periods on some of the things we looked at, if you start getting out to five or six years, we don't think that makes a lot of sense. So we -- but we continue to monitor that. We look at that on both the securities and loan side.

我們研究的一些事情的年底回溯期，如果你開始考慮五、六年，我們認為這沒有太大意義。所以我們——但我們會繼續監控這一情況。我們從證券和貸款兩個方面來看這個問題。

Yeah, I mean, totally get it. Are there pieces of the securities portfolio that are -- have a shorter weighted average life or sort of cash flows that you could see over the next year or two that you could accelerate and do something today just to give us some near-term boost to the NIM?

是的，我的意思是，完全明白。證券投資組合中的某些部分是否具有較短的加權平均壽命或現金流量，您可以在未來一兩年內看到它們，您可以加速並在今天做一些事情，只是為了給我們帶來一些短期的推動國家管理學院？

Not at the moment, I would say. We'll continue to look at that, but there's nothing -- when we look at the investment portfolio -- I mean, the munis are paying down, but some of the mortgage-backed that [stay] longer, the CMOs.

我想說，目前還不行。我們將繼續關注這一點，但沒有什麼——當我們審視投資組合時——我的意思是，市政機構正在償還債務，但一些抵押貸款支持的貸款支持時間更長，即 CMO。

The mortgage-backed portfolio is similar to our residential portfolio. There's -- a lot of the underlying loans in the mortgage-backed portfolio is not a lot of prepayments coming in if the underlying mortgage is at 3% or 3.5%.

抵押貸款支持的投資組合與我們的住宅投資組合類似。如果基礎抵押貸款利率為 3% 或 3.5%，則抵押貸款支持投資組合中的許多基礎貸款並不是大量預付款。

Yeah, okay. I wanted to -- I really liked all the disclosure you guys put in your slide deck, with respect to the multifamily, and was looking at the weighted average debt service coverage ratio after reset for some of the stuff that's resetting in ‘24 and ‘25, which is pretty helpful, and I haven't seen a lot of that, so thanks for giving us that information.

好的。我想——我真的很喜歡你們在幻燈片中所披露的關於多戶家庭的所有信息，並且正在研究重置後的加權平均償債覆蓋率，以了解一些在 24 中重置的內容和25，這非常有幫助，我還沒有看到很多這樣的內容，所以感謝您向我們提供這些資訊。

I was wondering if you had at your fingertips, maybe you don't, just, we kind of all can guess at what the rates are going to do and sort of the interest in the debt service. But in terms of the net operating income of some of these properties, for both the regulated and the free market, do you have a sense for whether or not those NOIs are starting to come down in the next year or two, or how do you think about that piece of the equation for the debt service coverage ratio?

我想知道你是否觸手可及，也許你沒有，只是，我們都可以猜測利率將如何變化以及償債利息的排序。但就其中一些物業的淨營業收入而言，無論是受監管市場還是自由市場，您是否知道這些 NOI 是否會在未來一兩年內開始下降，或者您如何判斷想一想償債覆蓋率的方程式嗎？

I don't have specific numbers for you, but I do see NOIs coming down and the NOIs are coming down because of inflation. I mean, we're seeing -- when we're looking at new opportunities or when you're looking at loans that are up for a rate reset, we're just doing annual reviews. You know, certain areas: utility expenses, insurance.

我沒有具體的數字給你，但我確實看到 NOI 下降，而 NOI 下降是由於通貨膨脹。我的意思是，我們看到 - 當我們尋找新的機會或當你尋找需要重新調整利率的貸款時，我們只是進行年度審查。你知道，某些領域：公用事業費用、保險。

We've seen insurance rates on some loans triple since the loan was originally booked. So the expense side is really also a challenge, right? When you think about the multifamily, you do have a lot of rent-regulated properties in that space. But if you see properties that look like they may have some stress on cash flow, it's more related to the higher interest rates at reset and the expenses. So it's not necessarily related to the regulations and to the 2019 legislation that was passed.

我們發現一些貸款的保險費率自最初預訂貸款以來增加了兩倍。所以費用方面確實也是個挑戰，對嗎？當你想到多戶住宅時，你會發現該領域確實有許多受租金管制的房產。但如果你看到房產看起來可能對現金流有一些壓力，那麼這更與重置時的較高利率和費用有關。因此，這與法規和通過的 2019 年立法沒有必然關係。

Right. Okay. I mean, I guess when you guys think about underwriting these things and resetting them, then what's sort of the magic number on debt service coverage ratio that you feel comfortable with?

正確的。好的。我的意思是，我想當你們考慮承保這些東西並重置它們時，那麼你們感到滿意的償債覆蓋率的神奇數字是多少？

Well, listen, if it's new stuff, if you look at policy and you'll go down to maybe 1.25, but if you look at reality where we book things and we've talked about it and obviously provide a lot of guidance on it, we generally book things at the average weighted average debt service coverage ratio about 1.8 times and 50% LTVs. And that's consistent with the information that we put out there in both our annual meeting and the 8-K.

好吧，聽著，如果這是新事物，如果你看看政策，你可能會下降到 1.25，但如果你看看我們預訂的現實，我們已經討論過它，並且顯然提供了很多指導，我們通常以平均加權平均償債覆蓋率約1.8 倍和50% LTV 進行預訂。這與我們在年會和 8-K 中發布的信息一致。

So that that leaves you a lot of room. And when we also put the additional information in our annual meeting when we talked about what the -- looking at what was resetting in ‘24 and ‘25 and we assumed that they all reset at March 31 of this year, the debt service coverage ratios, you know, basically went from the 1.80s to the 1.40s. Still a strong debt service coverage ratio and certainly loans, if it was a new loan coming in that we would look at seriously assuming all the other metrics were in good shape--but looking at those changes, right, that's basically about a 20% drop in the debt service coverage ratio, okay?

這樣就給你留下了很大的空間。當我們還在年度會議上討論什麼時，我們也將附加資訊放在了 - 看看 24 和 25 中重置的內容，我們假設它們都在今年 3 月 31 日重置，你知道，償債覆蓋率基本上從1.80 上升到1.40。償債覆蓋率仍然強勁，當然還有貸款，如果是一筆新貸款，我們會認真考慮，假設所有其他指標都處於良好狀態，但看看這些變化，對吧，基本上是 20% 左右償債覆蓋率下降，好嗎？

So if you were to write loans at a minimum debt service coverage ratio, and banks have different, some have a minimum of 1.15, some 1.20, 1.25. But if you had a 1.25 and if you did book a full loan and it was at a 1.25 debt service coverage ratio at the time you booked it, and that 20% decrease kind of held on across the board that you're seeing on average from what we showed you for ‘24 and ’25, then that loan would go down to about 1:1.

因此，如果你要以最低償債覆蓋率發放貸款，而銀行有不同的規定，有的最低為1.15，有的為1.20，有的為1.25。但是，如果您的償債覆蓋率是 1.25，並且您確實預訂了全額貸款，並且在您預訂時的償債覆蓋率是 1.25，那麼平均而言，您看到的 20% 的下降是全面的從我們向您展示的24 和25 來看，貸款比例將降至1:1 左右。

So it would obviously be in a more of a stretched situation, but it would be covering itself. There just would be no excess cash flow for the borrower, but they would be able to cover their expenses. So that 20% threshold for us, from what we're seeing, kind of seems to be the number where things are falling. And I would guess that's probably pretty consistent throughout the industry, because everybody's kind of looking at the same rates and everybody's kind of looking at the same type of properties.

因此，它顯然會處於更緊張的境地，但它會自我掩蓋。借款人不會有多餘的現金流，但他們能夠支付費用。因此，從我們所看到的情況來看，20% 的門檻似乎是事情正在下降的數字。我猜這在整個行業中可能是相當一致的，因為每個人都在關注相同的價格，每個人都在關注相同類型的房產。

That's really helpful color, Chris, I appreciate all the comments. Thanks for taking my questions.

這真的很有幫助，克里斯，我感謝所有的評論。感謝您回答我的問題。

Thanks, Alex. Appreciate it.

謝謝，亞歷克斯。欣賞它。

Chris O'Connell, KBW.

克里斯·奧康奈爾，KBW。

Thanks. Following up on the multifamily discussion, the slide with that service coverage ratios, it shows the 2025 free market at like 2 -- almost 2.2 times. Is there anything unusual in that? It just seems really, really strong for it to be that high before the rate resets kick in.

謝謝。繼多戶家庭討論之後，這張投影片顯示了服務覆蓋率，它顯示 2025 年的自由市場約為 2 倍——幾乎是 2.2 倍。這其中有什麼不尋常的地方嗎？在利率重置之前就達到如此高的水平，看起來真的非常非常強勁。

No, there is nothing unusual in that. I mean, we're pretty consistent in the way we underwrite and there's nothing unusual in that number. I mean, when you look at our overall portfolio and it's 1.90 when the entire CRE portfolio, it's certainly not going to be unusual to have some segments above 2 and some below.

不，這並沒有什麼不尋常的。我的意思是，我們的核保方式非常一致，這個數字沒有什麼異常。我的意思是，當你看到我們的整體投資組合時，整個 CRE 投資組合的比率為 1.90，有些部分高於 2，有些低於 2 的情況肯定不會罕見。

Got it. And then circling back to just the overall loan growth discussion, can you give us what the yield on that $118 million pipeline is?

知道了。然後回到整體貸款成長的討論，您能否告訴我們 1.18 億美元管道的收益率是多少？

The yield on the pipeline is always tough because a lot of them are floating off of an index until they close, but I can tell you in the first quarter, the closings for the first quarter were just about 7%. It was within a few basis points of 7%. So based on the fact that rates haven't changed that much, I know we've seen some ups and downs in the Treasury curve, but I'm going to say it's probably pretty close to that, but I don't have an exact number on that. But it shouldn't be too different from the 7% number.

管道中的收益率總是很艱難，因為其中許多都在從指數中浮動直到收盤，但我可以在第一季度告訴你，第一季的收盤收益率僅為 7% 左右。差距在 7% 的幾個基點之內。因此，基於利率沒有太大變化的事實，我知道我們已經看到國債曲線出現了一些起伏，但我想說它可能非常接近，但我沒有確切的數字。但與7%的數字應該相差不大。

Got it. And for the remainder of the year or next 12 months, I know you gave us on the combined basis, I think, last quarter. But do you have just what the dollar amount of loans either repricing or maturing are? And then securities, but the separate balances of each?

知道了。對於今年剩餘的時間或接下來的 12 個月，我認為您是在上個季度的綜合基礎上向我們提供的。但是，您是否掌握了重新定價或到期的貸款金額？然後是證券，但每種證券的單獨餘額呢？

So what we put out there is we generally have about $80 million to $90 million in quarterly cash flow coming in. I know that's not necessarily loans repricing, but that's quarterly cash flow coming in repricing. I don't have -- other than what we've put out on CRE and what's repricing on the multifamily portfolio, I don't have the total amount. Because again, when you look at the CNI side, right, you have lines of credit paying up, paying down and moving around. So you can't always tell when the line usage is going to be up or be down a little bit from quarter to quarter, and that does fluctuate. So I don't have specific numbers on that. But that's something that we can try to put together better for the next quarter for you.

因此，我們公佈的季度現金流通常約為 8,000 萬至 9,000 萬美元。我知道這不一定是貸款重新定價，而是重新定價的季度現金流。我沒有——除了我們在 CRE 上發布的數據以及多戶住宅投資組合的重新定價之外，我沒有總金額。因為，當你看 CNI 方面時，你會看到還款、還款和流動的信用額度。因此，您無法隨時判斷線路使用量何時會逐季度上升或下降，而且線路使用量確實會波動。所以我沒有具體數字。但我們可以在下個季度為您更好地整合這些內容。

Yeah, no problem. I guess what I'm getting at is after we get past the second quarter with some of these May and April kind of final CD repricings, you seem to be a little bit more tepid on the back end of the year. You know, NIM rebounding this quarter and it seems like the CDs will pretty much fully reprice. The borrowings, are more or less fully repriced, and you're going to be getting improvement, although slow, with the asset side, just are you thinking about just being conservative? Or do you think the NIM is going to be going up in the second half of the year?

是的，沒問題。我想我想說的是，在我們度過了第二季度之後，其中一些五月和四月的最終 CD 重新定價，你似乎在今年年底變得更加不溫不火。你知道，淨利差本季出現反彈，而且 CD 似乎將幾乎完全重新定價。借款或多或少都已完全重新定價，並且您將得到改善，儘管速度緩慢，但在資產方面，您只是在考慮保守嗎？或者您認為下半年淨利差會上升嗎？

I think we're being conservative because whenever you're not conservative it seems to come back just like everybody thought going into this year or the market was certainly thinking there was going to be 7 rate decreases, and now we don't know if there's going to be any, right? So the feds still saying they're going to do something, maybe 2 or 3 or what have you, but there's others saying that maybe it doesn't happen till next year.

我認為我們是保守的，因為只要你不保守，它似乎就會回來，就像每個人都認為今年會降息一樣，或者市場肯定認為會有 7 次降息，現在我們不知道是否會降息。的，對吧？所以聯邦政府仍然說他們會做一些事情，也許是 2 到 3 件事，但也有人說也許要到明年才會發生。

So you do get a little conservative, and then you have some unexpected changes in the mix a little bit, and you still do have money moving out of DDA. So conservatively we say, hey, if there's if the mix is good and we get some relief on the rate side, we see margin being able to move up. But, when you look at our overall liability side, as we've said, the higher cost stop, the wholesale funding, any brokered CDs, the retail CDs, I mean, that is really largely repriced, right? There's a few little things here and there, but nothing real significant, so that's largely repriced.

所以你確實變得有點保守，然後你的組合發生了一些意想不到的變化，但你仍然有資金從 DDA 中轉移出來。因此，保守地說，嘿，如果組合良好並且我們在利率方面得到一些緩解，我們就會看到利潤率能夠上升。但是，當你看看我們的整體負債方面時，正如我們所說，更高的成本止損、批發資金、任何經紀CD、零售CD，我的意思是，這實際上很大程度上重新定價了，對嗎？到處都有一些小事情，但沒有什麼真正重要的，所以大部分都重新定價了。

When we look at our non-maturity deposits, savings-now money market accounts, they've been continuing to go up but at a decreasing pace. And you can see those numbers in our NIM tables for the past several quarters. And those numbers have moved down from an average of about 17 basis points a month when you go back to the first quarter of last year down to about 7 basis points a month when you look at the first quarter of this year. So when you look at that, and if you look at that on, say, about $1.6 billion, and you apply, well, how much extra interest cost is that going to be. And then if we look at our cash flow that we talk about coming in, the $80 million to $90 million a quarter coming in on loans and securities, and if we look at a number of, say, 2% to 3%, 2.5% on that repricing up and just simply taking a 3.5% loan and saying it's going to reprice to 6%, for argument's sake, and use that number.

當我們觀察我們的非到期存款、現在的儲蓄貨幣市場帳戶時，它們一直在持續成長，但速度正在下降。您可以在過去幾季的淨利差表中看到這些數字。這些數字已從去年第一季的平均每月約 17 個基點下降到今年第一季的每月約 7 個基點。因此，當你看一下這個數字時，如果你看一下，比如說，大約 16 億美元，然後你就會知道，這將是多少額外的利息成本。然後，如果我們看看我們談論的現金流量，每個季度有 8000 萬到 9000 萬美元的貸款和證券收入，如果我們看看一些，比如 2% 到 3%、2.5%就重新定價而言，只是簡單地借了一筆3.5% 的貸款，並表示將重新定價至6%（為了爭論），並使用該數字。

That repricing on that asset side, that small group of assets coming in because it's going to be a much larger repricing than where we currently are on the non-maturity deposits, there's upside potential there, right? And We believe that that trend in the non-maturity deposits, coming down from that 17 basis points a month to 7 basis points, it's been coming down fairly consistently over that period of time, so that could very well continue. But if something happens it could go back up a little bit.

資產方面的重新定價，一小部分資產的重新定價，因為它將比我們目前對非到期存款的重新定價大得多，那裡有上行潛力，對吧？我們認為，非到期存款的趨勢從每月 17 個基點下降到 7 個基點，在這段時間內一直在相當穩定地下降，因此這種情況很可能會持續下去。但如果發生什麼事情，它可能會回升一點。

So I think we're being on the conservative side a little when you when you boil it down to what's really repricing now and where the pressures may be. I would say it leans towards the upside, but there's always the unknowns every quarter, right? We went down 21 basis points in margin this quarter, which was higher than I would have expected it to go down, but we just had an unfortunate change in mix from quarter to quarter that seems to be correcting now as we see the end of the first quarter numbers. But you do -- there is always the unexpected in there.

因此，我認為當你將其歸結為現在真正的重新定價以及壓力可能在哪裡時，我們有點保守。我想說它傾向於上漲，但每個季度總是存在未知因素，對嗎？本季我們的利潤率下降了21 個基點，這比我預期的下降要高，但我們只是在季度與季度之間的組合上發生了不幸的變化，隨著我們看到季度末，這種變化似乎正在糾正。但你確實如此——那裡總是有意想不到的事情。

Understood. And just on the capital position, you guys bought back a little bit of shares this quarter. You were a little cautious on the buyback last quarter. Is it's something that you think you will continue from here?

明白了。就資本狀況而言，你們本季回購了一些股票。您對上個季度的回購有點謹慎。您認為您會從這裡繼續嗎？

We take a look at it every quarter and depending on the capital position, we would consider buying back shares for sure in the upcoming months.

我們每季都會進行一次審查，根據資本狀況，我們肯定會考慮在接下來的幾個月內回購股票。

Great. And then last one for me is just, what's the good go-forward tax rate?

偉大的。對我來說最後一個問題是，好的未來稅率是多少？

Well, I know we guided to 12% at the beginning of the year. We came in at 6.25%. We're starting to max out on the tax benefit of the REIT. So I do think the tax rate is going to be going up. I would say somewhere in the middle of the 6.25% and the 12% that we guided at the beginning of the year.

嗯，我知道我們年初的目標是 12%。我們的得分為 6.25%。我們開始最大限度地利用房地產投資信託基金的稅收優惠。所以我確實認為稅率將會上升。我想說的是我們年初指導的 6.25% 和 12% 之間的某個位置。

Okay, great. Thanks for the time.

好的，太好了。謝謝你的時間。

You're welcome.

不客氣。

Thanks, Chris.

謝謝，克里斯。

Thank you. This concluded our question-and-answer session. I will turn the floor back over to Chris Becker for closing comments.

謝謝。我們的問答環節到此結束。我將把發言權交還給克里斯·貝克爾以供結束評論。

Yeah, thank you for your attention and participation on the call today, and we look forward to talking to everybody at the end of the second quarter. Have a good rest of the day.

是的，感謝您對今天電話會議的關注和參與，我們期待在第二季末與大家交談。好好休息一天吧。