First of Long Island Corp (FLIC) 2024 Q2 法說會逐字稿

Welcome to The First of Long Island Corporation's second 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.

歡迎參加長島公司 2024 年第二季財報電話會議。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。

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/Q2.

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/Q2 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 companies' filings with the US Securities Exchange Commission.

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。

Investors should also refer to our 2023 10-K filed on March 8, 2024, as supplemented by our 10-Q for the quarter-ended March 31, 2024, for a list of risk factors that could cause actual results to differ materially from those indicated or implied by such statements.

投資者還應參閱我們於2024 年3 月8 日提交的2023 年10-K 報告以及截至2024 年3 月31 日的季度10-Q 報告，以了解可能導致實際結果與預期結果有重大差異的風險因素列表此類陳述表明或暗示。

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 second quarter of 2024. I am pleased to report linked quarter improvements in many key financial ratios and Financial Statement line items including: increase in return on assets; increase in return on equity; improvement in efficiency ratio; growth in deposits; growth in loans; higher non-interest income; lower non-interest expense; higher net income; higher earnings per share; and most importantly, increase in net interest margin.

謝謝。下午好，歡迎參加長島公司 2024 年第二季財報電話會議。我很高興地報告許多關鍵財務比率和財務報表項目的季度改善，包括：資產回報率的增加；股本回報率增加；提高效率；存款成長；貸款增長；更高的非利息收入；降低非利息支出；更高的淨收入；每股收益更高；最重要的是，淨利差增加。

After six consecutive quarters of net interest margin declined from 2.97% for the three months ended September 30, 2022, to 1.79% for the three months ended March 31, 2024, our margin increased to 1.8% for the three and six months ended June 30, 2024. While not a substantial move up, certainly a positive indicator for stabilization.

在淨利差連續六個季度從截至2022年9月30日止三個月的2.97%下降至截至2024年3月31日止三個月的1.79%後，截至6月30日止三個月和六個月的淨利差增加至1.8% ，2024 年。雖然不是大幅上漲，但肯定是穩定的正面指標。

Repeating what I stated last quarter, barring any significant changes in our funding mix or short-term rates moving higher, we believe on an interest margin should be at the bottom. The pace of interest earning assets repricing was basically in line with the pace of interest bearing liability repricing during the second quarter of this year, and that trend is expected to continue, if not improve, in the quarters ahead.

重複我上季度所說的，除非我們的融資組合發生任何重大變化或短期利率走高，否則我們認為息差應該處於底部。今年第二季生息資產重定價的步伐與付息負債重定價的步伐基本一致，預計未來幾季這種趨勢將持續（即使沒有改善）。

Managing the mix of the balance sheet will augment margin improvement and coupled with a more favorable yield curve, this improvement can accelerate. Talk of lower short-term rates is encouraging for continued earnings growth moving forward.

管理資產負債表的組合將增強利潤率的改善，再加上更有利的殖利率曲線，這種改善可能會加速。關於短期利率下降的討論對於未來獲利的持續成長來說是令人鼓舞的。

The Bank had stronger loan originations during the second quarter, closing $70 million with a weighted average rate of approximately 7%. Second quarter originations were driven by C&I and owner-occupied commercial mortgages, highlighting our focus on relationship-based business. Originations during the second quarter continued the progress made remixing our loan portfolio from consumer to commercial that began in 2020.

該銀行第二季的貸款發放更為強勁，共結清 7,000 萬美元，加權平均利率約 7%。第二季的發放是由工商業和自住商業抵押貸款推動的，凸顯了我們對基於關係的業務的關注。第二季的啟動延續了 2020 年開始的將我們的貸款組合從消費者貸款組合重新混合到商業貸款組合所取得的進展。

During that period, relationship-based C&I and owner-occupied commercial mortgages increased 80%, and other commercial real estate increased 30%. In total, our commercial lending business has grown $582 million. That growth has been masked by letting our residential lending business amortize down by $514 million over the same period.

在此期間，基於關係的 C&I 和自住商業抵押貸款增加了 80%，其他商業房地產增加了 30%。我們的商業貸款業務總共成長了 5.82 億美元。這一增長被我們的住宅貸款業務在同一時期攤銷額減少了 5.14 億美元所掩蓋。

Building our commercial relationship business has also resulted in an improved mix on the funding side as non-interest-bearing deposits represented 30% of our funding mix at June 30, 2024, compared to 25% on December 31, 2019. In the current environment, I believe it's important to note that our remix to commercial lending has not included any significant increase in multifamily loans outstanding. Our multifamily loans totaled $868 million at the end of the second quarter of 2024, up minimally from $835 million at the end of 2019.

建立我們的商業關係業務也改善了融資方面的組合，截至 2024 年 6 月 30 日，無息存款占我們融資組合的 30%，而 2019 年 12 月 31 日這一比例為 25%。在當前環境下，我認為值得注意的是，我們對商業貸款的重新組合並沒有包括多戶家庭未償還貸款的任何顯著增加。截至 2024 年第二季末，我們的多戶家庭貸款總額為 8.68 億美元，略高於 2019 年底的 8.35 億美元。

The June 30, 2024, pipeline was $137 million with a projected average rate of approximately 6.75%. Please keep in mind that many loans in the pipeline are floating off an index plus a margin until the closing, so the weighted average rates move with the market. The pipeline has increased from the end of the first quarter when it was at $113 million.

截至 2024 年 6 月 30 日，管道資金總額為 1.37 億美元，預計平均利率約為 6.75%。請記住，在收盤之前，許多正在規劃中的貸款都是根據指標加上保證金浮動的，因此加權平均利率會隨著市場的變化而變化。待開發案較第一季末的 1.13 億美元增加。

We have been closely monitoring rate resets and have provided detailed information in that regard in a Form 8-K filed on March 1, 2024, supplemented by additional information in our Annual Shareholders Meeting presentation on April 16, 2024. During the second-half of this year, based on rates as of June 30, 2024, we have $65 million of multifamily and non-owner occupied commercial mortgages repricing with a weighted average rate of 4.24% before the rate reset and a projected weighted average rate of 7% after the rate reset.

我們一直在密切關注利率重置，並在2024 年3 月1 日提交的8-K 表格中提供了這方面的詳細信息，並在2024 年4 月16 日的年度股東大會演示中補充了更多資訊.今年下半年，根據截至2024 年6 月30 日的利率，我們對6500 萬美元的多戶型和非自住型商業抵押貸款進行了重新定價，利率重置前的加權平均利率為4.24%，預計加權平均利率為利率重置後利率為7%。

Looking forward into 2025, based on rates as of June 30 2024, we have $122 million of multifamily and non-owner occupied commercial mortgages repricing with a weighted average rate of 3.53% before the rate reset and a projected weighted average rate of 7.02% after the rate reset. For loans with projected cash flow stress, we have started to reach out to borrowers to discuss options for their consideration.

展望2025 年，根據截至2024 年6 月30 日的利率，我們有1.22 億美元的多戶型和非自住商業抵押貸款重新定價，利率重置前的加權平均利率為3.53%，利率重置後的預計加權平均利率為7.02%利率重置。對於預計有現金流壓力的貸款，我們已開始與借款人聯繫，討論供他們考慮的選項。

Our criticized, classified, past due, non-performing, and charge-off levels all remain low, and we currently assess our credit quality as strong.

我們的批評、分類、逾期、不良和沖銷水準仍然很低，目前我們評估我們的信用品質良好。

On June 28 2024, we opened a branch on the North Fork of Long Island in Southold. We believe this location will be a great complement to the rest of the east-end of Long Island presence that we established over recent years, including Riverhead, Southampton, and East Hampton. We currently have 41 branches, covering Nassau and Suffolk counties and the boroughs of Manhattan, Queens, and Brooklyn. Our branch count is down from a high of 52 branches at the end of 2019, but our total deposits have increased by approximately $220 million over that period, a much more efficient model.

2024 年 6 月 28 日，我們在紹斯霍爾德長島北叉開設了一家分店。我們相信，這個地點將是我們近年來建立的長島東端其他地區（包括里弗黑德、南安普敦和東漢普頓）的一個很好的補充。我們目前擁有 41 個分支機構，涵蓋拿騷縣和薩福克縣以及曼哈頓、皇后區和布魯克林區。我們的分行數量較 2019 年底 52 家分行的最高水準有所下降，但同期我們的總存款增加了約 2.2 億美元，這是一種更有效率的模式。

We continue to evaluate prospects for geographic expansion, as well as efficiencies within our existing branch network. Our company has been around for nearly a century because we stay focused on the fundamentals of strong credit quality and meaningful customer relationships. We believe our fundamentals have built and will continue building a strong franchise.

我們繼續評估地域擴張的前景以及現有分支機構網路的效率。我們公司已經存在了近一個世紀，因為我們始終專注於強大的信用品質和有意義的客戶關係的基礎。我們相信我們的基礎已經建立並將繼續建立強大的特許經營權。

Growth and margins have been challenged over the past 18 months, but we remain optimistic about future opportunities to build shareholder value.

過去 18 個月，成長和利潤率受到挑戰，但我們對未來創造股東價值的機會仍然持樂觀態度。

Janet Verneuille will now take you through financial highlights of the quarter and year-to-date. Janet?

Janet Verneuille 現在將帶您了解本季和年初至今的財務亮點。珍妮特？

Thank you, Chris. Good afternoon, everyone. Following up on some of Chris' comments, positive trends quarter over quarter included the following: an increase in return on assets from 0.42% to 0.45%; an increase in return on equity from 4.72% to 5.15%; increase in net interest margin from 1.79% to 1.8%; improvement in efficiency ratio to 73.6% from 76.5%. Although these are slight improvements, they can be a forward-facing indicator of trending stabilization of our net interest margin. Coupled with recent heightened market anticipation of a Fed funds rate cut in September, we expect to maintain this trend.

謝謝你，克里斯。大家下午好。根據 Chris 的一些評論，季度環比的正面趨勢包括：資產回報率從 0.42% 增加到 0.45%；股本回報率從4.72%增加至5.15%；淨利差從1.79%增加至1.8%；效率比從 76.5% 提高到 73.6%。儘管這些都是輕微的改善，但它們可以成為我們淨利差趨於穩定的前瞻性指標。加上近期市場對 9 月聯邦基金利率降息的預期增強，我們預期這一趨勢將維持下去。

The company recognized net income of $4.8 million for the second quarter of 2024, $4.4 million for the linked quarter, and $6.9 million for the same quarter last year. Earnings per share were $0.21 for the quarter, equal to the per share dividend declared by our Board of Directors in June of 2024. EPS for the linked quarter and the same quarter last year were $0.20 and $0.31, respectively.

該公司確認 2024 年第二季淨利為 480 萬美元，相關季度淨利為 440 萬美元，去年同期淨利為 690 萬美元。本季每股收益為 0.21 美元，相當於董事會 2024 年 6 月宣布的每股股息。上一季和去年同期的每股收益分別為 0.20 美元和 0.31 美元。

The increase from the linked quarter was largely attributed to the increase in net interest income by $270,000 and decrease in salaries and employee benefits of $474,000 primarily due to decreases in employee incentive accruals. These were partially offset by a $570,000 provision for loan losses.

上一季的成長主要歸因於淨利息收入增加 27 萬美元，以及工資和員工福利減少 47.4 萬美元，這主要是由於應計員工激勵的減少。這些損失被 57 萬美元的貸款損失準備金部分抵銷。

The decline from the second quarter of 2023 is largely attributed to the decrease in the net interest income by $3.4 million, a $570,000 provision for loan losses, partially offset by a decrease in the provision for income tax expense of $1 million attributable to lower earnings and a decrease in the effective tax rate.

與 2023 年第二季相比的下降主要歸因於淨利息收入減少 340 萬美元，貸款損失準備金減少 57 萬美元，部分被收入下降和所得稅費用準備金減少 100 萬美元所抵消。 。

Noninterest income of $2.9 million exceeded non-interest income recorded in the linked quarter of $2.8 million and the same quarter last year of $2.7 million. Improved results from service charges on deposit accounts, merchant card services, and bank-owned life insurance were the main contributors to the increase.

非利息收入為 290 萬美元，超過了相關季度的 280 萬美元和去年同期的 270 萬美元。存款帳戶服務費、商業卡服務和銀行人壽保險的業績改善是成長的主要貢獻者。

Management had guided in analyst calls to quarterly non-interest income totals of approximately $2.6 million. Based on deposit account service charge collection improvements after our system upgrade, management currently believes increases in service charge revenue will remain stable. Although merchant card services can fluctuate, we now expect for the last two quarters of 2024, these revenues will trend consistent to the first two quarters.

管理層在分析師電話會議中預計季度非利息收入總額約為 260 萬美元。基於系統升級後存款帳戶服務費收取的改善，管理階層目前認為服務費收入的成長將保持穩定。儘管商家卡服務可能會出現波動，但我們現在預計 2024 年最後兩季的營收趨勢將與前兩季保持一致。

Noninterest expense totaled $15.8 million for the current quarter as compared to $16.2 million in the linked quarter and $16.5 million in the same quarter last year. Earlier in the year, management had guided in analyst calls to quarterly non-interest expense totals of approximately $16.25 million. We did have some open staffing positions during the second quarter, but we also lowered incentive compensation accrual rates. We anticipate noninterest expenses for the last two quarters of 2024 will be comparable to the first two quarters.

本季非利息支出總計 1,580 萬美元，而上一季為 1,620 萬美元，去年同期為 1,650 萬美元。今年早些時候，管理層在分析師電話會議中預計季度非利息支出總額約為 1,625 萬美元。第二季我們確實有一些空缺的人員職位，但我們也降低了激勵薪資應計率。我們預計 2024 年最後兩季的非利息支出將與前兩季相當。

During the second quarter, we used excess cash to pay down about $143 million of wholesale borrowings, leading to a small deleveraging of the balance sheet of $46 million even though we had deposit growth of $37 million and loan growth of $14 million. Loan growth was better than the net number reflects as C&I loans increased $27 million and commercial mortgages increased by $15 million.

第二季度，我們使用過剩現金償還了約 1.43 億美元的批發借款，導致資產負債表小幅去槓桿化 4,600 萬美元，儘管我們的存款增加了 3,700 萬美元，貸款增加了 1,400 萬美元。貸款成長優於淨數字反映的情況，工商業貸款增加了 2,700 萬美元，商業抵押貸款增加了 1,500 萬美元。

Commercial growth was offset by residential mortgages decreasing $27 million as we continue to remix the loan portfolio toward commercial lending. The overall loan yield of 4.22% was up 8 basis points quarter over quarter.

隨著我們繼續將貸款組合重新調整為商業貸款，商業成長被住宅抵押貸款減少 2,700 萬美元所抵消。整體貸款收益率為4.22%，較上季上升8個基點。

The second quarter saw a notable increase in average non-maturity interest-bearing deposits of $85 million and certificates of deposits of $15 million. Average noninterest-bearing checking deposits increased by $11 million and represent 33% of total deposits. The weighted average cost of interest-bearing non-maturity deposits was 2.84% and for CDs, it was 4.24%.

第二季度，平均無到期息存款顯著增加8,500萬美元，存款證顯著增加1,500萬美元。無息支票存款平均增加 1,100 萬美元，佔存款總額的 33%。有息非到期存款的加權平均成本為2.84%，存款證為4.24%。

As of the close of the second quarter, the repricing of wholesale funding, FHLB borrowings, and brokered CDs to current market rates remained largely behind us. Although at a slower pace, we continue to approve upward interest rate adjustments based on the overall customer relationship.

截至第二季末，批發融資、FHLB 借款和經紀存款證按照當前市場利率進行重新定價的情況​​基本上已經過去。儘管步伐較慢，我們仍根據整體客戶關係批准利率上調。

The purchase of the fixed-to-floating swap in March 2023 continues to pay dividends adding $1.2 million to net interest income in the second quarter. The swap matures in March 2026.

2023 年 3 月購買的固定浮動互換繼續支付股息，使第二季的淨利息收入增加 120 萬美元。該互換將於 2026 年 3 月到期。

Net interest income for the second quarter of 2024 increased $270,000 compared to the linked quarter and decreased $3.4 million from the same quarter last year. Our net interest margin of 1.8% for the second quarter of 2024 compares to 1.79% for the linked quarter and 2.17% for same quarter last year.

2024 年第二季的淨利息收入較上一季增加 27 萬美元，較去年同期減少 340 萬美元。我們 2024 年第二季的淨利差為 1.8%，而上一季為 1.79%，去年同期為 2.17%。

Yield on total interest-earning assets was 4.16% for the second quarter of 2024, [4.08%] for the linked quarter, and 3.78% for same quarter last year.

2024年第二季生息資產總額報酬率為4.16%，上季為[4.08%]，去年同期為3.78%。

Cost of total interest-bearing liabilities was 3.56% for second quarter of 2024, 3.47% for the linked quarter, and 2.51% for same quarter last year.

2024 年第二季有息負債總額成本為 3.56%，上一季為 3.47%，去年同期為 2.51%。

The allowance for credit losses as of June 30, 2024, was $28.5 million. A provision was booked to the ACL of $570,000 during the quarter. The quarterly provision was largely due to a $276,000 specific reserve on one nonperforming loan, and $421,000 of net charge-offs. The reserve coverage ratio at June 30, 2024, remained flat at 0.88% when compared to the linked quarter.

截至 2024 年 6 月 30 日，信貸損失準備金為 2,850 萬美元。本季為 ACL 預留了 57 萬美元的撥款。季度撥備主要是由於一筆不良貸款的 276,000 美元專項準備金和 421,000 美元的淨沖銷。截至 2024 年 6 月 30 日，準備金覆蓋率與上一季持平，為 0.88%。

The capital position remains strong with a leverage ratio of approximately 9.9% at June 30, 2024. Book value per share was $16.71 at June 30, 2024, versus $16.22 at June 30, 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. There were no shares repurchased in the second quarter of 2024.

截至2024年6月30日，資本狀況依然強勁，槓桿率約9.9%。截至2024年6月30日，每股帳面價值為16.71美元，而2023年6月30日為16.22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。2024年第二季沒有回購股票。

The effective tax rate for the second quarter of 2024 decreased to 1.6% as compared to 6.2% for the linked quarter. The annualized effective tax rate is now expected to be approximately 4%. The change was due to a reduction in 2024 projected income, with rates staying higher for longer than anticipating, causing a greater impact of the tax-exempt items on the effective tax rate.

2024 年第二季的有效稅率降至 1.6%，而上一季為 6.2%。目前預計年化有效稅率約為4%。這項變更是由於2024年預計收入減少，稅率維持在較高水準的時間比預期更長，導致免稅項目對有效稅率的影響更大。

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

就這樣，我將其轉回給我們的接線員詢問問題。

Mark Fitzgibbon, Piper Sandler.

馬克·菲茨吉本，派珀·桑德勒。

Thank you for taking my question and good afternoon. Happy Friday.

感謝您提出我的問題，下午好。星期五快樂。

Good afternoon, Mark.

下午好，馬克。

If the Fed follows the forward curve, and we see two more cuts this year, I'm curious how much you think the net interest margin might be able to snap back by the end of the year?

如果聯準會遵循遠期曲線，而我們今年會再降息兩次，我很好奇您認為淨利差到年底可能會回升多少？

Well, in a previous call, you know, we had indicated that each 25 basis point cut could improve margin by 4 to 5 basis points, and we haven't updated that in further. So that still seems to be a pretty good estimate.

嗯，在之前的一次電話會議中，我們曾表示，每下調 25 個基點就可以將利潤率提高 4 到 5 個基點，但我們沒有進一步更新這一點。所以這似乎仍然是一個相當不錯的估計。

Okay. And then secondly, I was curious credit obviously here is terrific, but what drove that $1.8 million uptick in non-performing loans? And could you also share with us what net charge-offs were in the quarter?

好的。其次，我很好奇這裡的信貸顯然很棒，但什麼推動了不良貸款增加 180 萬美元？您能否與我們分享本季的淨沖銷額？

Yeah. Net charge-offs were a little over $400,000 for the quarter. And it was one loan that went non-performing where we took -- that's the loan that had the specific reserve and had a partial charge-off down to the appraised value. The charge-off is about $175,000.

是的。該季度的淨沖銷額略高於 40 萬美元。我們獲得的貸款是不良貸款，即具有特定準備金並部分沖銷至評估價值的貸款。沖銷金額約為 175,000 美元。

Okay. And what type of loan is that?

好的。那是什麼類型的貸款？

That was a multifamily loan. That's our only multi-family loan in nonperforming.

那是多戶家庭貸款。這是我們唯一的不良多戶貸款。

All right. And then I heard the numbers that you mentioned on the call about multifamily and non-owner occupied commercial real estate that's rolling from sort of 4.25%, up to 7% or 3.5% upto 7% on the $122 million. I guess I'm curious, have you guys done an analysis that sort of looks at whether the cash flow on those buildings will be sufficient once the rate basically doubles?

好的。然後我聽到你在電話會議上提到的關於多戶型和非業主佔用的商業房地產的數字，這些數字在 1.22 億美元中從 4.25% 上升到 7% 或 3.5% 上升到 7%。我想我很好奇，你們有沒有做過分析，看看一旦利率基本上翻倍，這些建築物的現金流是否充足？

Yes, absolutely. We've looked at every loan from -- that's repricing between now and the end of 2025 to calculate their repricing rate and their cash flow. And that's where I'd mention anything that's showing some possible stress, we're reaching out in advance to those customers to see what type of strategies we can do to help relieve any of that stress.

是的，絕對是。我們研究了從現在到 2025 年底之間的每筆貸款的重新定價，以計算其重新定價率和現金流。這就是我要提到的任何可能出現壓力的情況，我們正在提前與這些客戶聯繫，看看我們可以採取什麼類型的策略來幫助緩解這些壓力。

We've had success in that regard. We've had situations where the borrower has refinanced early and paid down. We've had other situations where we've gotten additional pieces of collateral by combining two loans into one, one that had stronger cash flow, one that maybe was showing signs of stress at the reset to combine them to make the cash flow better overall.

我們在這方面取得了成功。我們遇過借款人提前再融資並還款的情況。我們也遇到過其他情況，我們透過將兩筆貸款合併為一筆貸款來獲得額外的抵押品，其中一筆貸款具有更強的現金流，另一筆貸款可能在重置時顯示出壓力跡象，將它們合併起來以使現金流整體更好。

So borrowers have been receptive to us reaching out early and because obviously they don't want to get into a situation, and especially if there's a current option for a rate that might be a little bit less than what they would reset at, say, five or six months down the road.

因此，借款人很樂意接受我們儘早伸出援手，因為顯然他們不想陷入困境，特別是如果當前的利率選擇可能比他們重置的利率低一點，比如說，五六個月後。

Okay. And then the last question I had was around the tax rate. I heard, Janet, your comments, the effective rate for the year will be around 4%. What will it look like in 2025? Like, what's sort of a normalized run rate for you all?

好的。我的最後一個問題是關於稅率的。我聽說，珍妮特，你的意見，今年的有效率將在4%左右。2025 年會是什麼樣子？例如，你們所有人的標準化運作率是多少？

Well, assuming that income goes up, the effective tax rate will go up, obviously, because the tax exempt items will be a smaller percentage of income. I hesitate to give a number. Maybe I'd say, I don't know, probably maybe about 7%, I would estimate at this point. But really it's going to depend on where income comes in and how we manage those tax exempt items.

嗯，假設收入增加，顯然有效稅率也會上升，因為免稅項目佔收入的比例較小。我猶豫著要不要給一個數字。也許我會說，我不知道，我現在估計大概是 7% 左右。但實際上，這將取決於收入的來源以及我們如何管理這些免稅項目。

Thank you, Mark.

謝謝你，馬克。

Chris O'Connell, KBW.

克里斯·奧康奈爾，KBW。

Good. Just wanted to start off with -- you provided the multi-family and non-owner occupied CRE repricing in the second-half of the year. Just curious, how much of the multifamily and non-owner occupied repriced in the first-half of '24?

好的。我只是想從今年下半年開始，您提供了多戶型和非業主自用型 CRE 的重新定價。只是好奇，24 年上半年有多少多戶住宅和非業主住宅重新定價？

Yeah. I don't have that number right in front of me, but it was very similar to what's repricing in the second-half.

是的。我面前沒有這個數字，但它與下半年的重新定價非常相似。

Got it. And as far as the funding side goes, with CDs are up probably pretty close to market rates at this point. I mean, how much more do you think has left to reprice?

知道了。就資金方面而言，CD 的利率目前可能非常接近市場利率。我的意思是，您認為還需要重新定價多少？

There's very little bit. We just had one small piece that repriced that was at a low rate on the brokerage side. And as far as the retail CDs, they're pretty much at market. I would say it's a minimal what's left to reprice to market rates.

數量非常少。我們只有一小部分重新定價，經紀方面的利率很低。至於零售 CD，它們幾乎都在市場上。我想說的是，根據市場價格重新定價所剩下的只是最少的。

Got it. So, I mean, I'm just curious because you did have a decent amount of CD repricing, especially kind of earlier in the year, as well as the borrowings. Why not a little bit more positive on the margin and the interim between now and when rate cuts begin, given that it seems like similar asset repricing on the other side of the balance sheet?

知道了。所以，我的意思是，我只是很好奇，因為你們確實有大量的 CD 重新定價，尤其是在今年早些時候，還有借款。鑑於資產負債表另一側的資產重新定價似乎類似，為什麼不在從現在到降息開始之間的邊際和過渡時期採取更積極的態度呢？

Yeah, I think as we looked at the second quarter, it was pretty well even as far as what repriced on both sides of the balance sheet. And we still have -- on the non-maturity side in our money market deposit accounts, you still have those one-off relationship discussions and we still had some increase in those rates throughout the second quarter. And I think that's why we're still being a little a little cautious on this. You know we're looking closely at those, but there's still -- that's where the numbers still went up for us in the second quarter.

是的，我認為，當我們看到第二季時，即使就資產負債表兩側的重新定價而言，情況也相當不錯。在我們的貨幣市場存款帳戶的非到期方面，我們仍然進行一次性關係討論，並且在整個第二季度我們的利率仍然有所增加。我認為這就是為什麼我們對此仍然有點謹慎。你知道我們正在密切關注這些問題，但第二季的數字仍然在上升。

And on the loan growth, it sounds like pipelines are up, improved the past couple of quarters, good originations. Are you still thinking inclusive of the residential plan drawn off on net low-single-digit growth for this year?

在貸款成長方面，聽起來貸款管道正在增加，過去幾個季度有所改善，來源良好。您是否仍在考慮將今年的住宅計畫納入低個位數的淨成長？

And if you're getting into a rate cutting environment as we get towards the back of 2024 to 2025, is that residential strategy, do you think that will continue or moderate if there's less funding pressures and lead to higher kind of net loan growth into 2025?

如果您在 2024 年至 2025 年末進入降息環境，那麼如果融資壓力較小並導致更高的淨貸款成長，您認為這種住宅策略會持續還是會放緩？

It will continue. We don't plan to begin originating residential mortgages. We stopped originating them towards the second-half of last year. We don't plan to begin originating them. Now, we may consider purchasing loans if we wanted to have some diversification in the portfolio, but we really want to focus on continuing to grow the relationship-based C&I and owner-occupied commercial mortgages.

它將繼續。我們不打算開始發放住宅抵押貸款。我們在去年下半年停止了創作它們。我們不打算開始原創它們。現在，如果我們想要投資組合多樣化，我們可能會考慮購買貸款，但我們確實希望專注於繼續發展基於關係的商業抵押貸款和業主自用商業抵押貸款。

If you look at our loan portfolio pie chart, that's still the smallest slice while it's up from a low of 7% a handful of years ago to about 12% or so now. Ideally, we'd like four equal buckets of multi-family, other commercial real estate relationship, C&I and owner occupied, and then residential. So the residential still has a ways to go to get down to that quarter, if you look at those four pieces of the pie. And at that point, we would possibly consider, as I said, buying some residential.

如果你看一下我們的貸款組合餅圖，你會發現這仍然是最小的部分，但它從幾年前 7% 的低點上升到現在的 12% 左右。理想情況下，我們需要四個相等的桶，分別是多戶住宅、其他商業房地產關係、工商業和業主自用，然後是住宅。因此，如果你看看這四個餡餅，住宅區還有很長的路要走，才能達到這個季度的水平。到那時，正如我所說，我們可能會考慮購買一些住宅。

As you guys have reached out to what you said in the multifamily customers and the ones that look tight, any sense of how big that customer segment is either on a percentage basis of the book or on a dollar amount even if it's kind of just ballparking?

正如你們已經了解了多戶型客戶和看起來很緊張的客戶所說的那樣，對於該客戶群有多大的感覺，要么是按書中的百分比計算，要么是按美元金額計算，即使這只是大概的數字？

Yeah, I can tell you for the remainder of this year, it's six loans. So it's a small number of borrowers.

是的，我可以告訴你，今年剩下的時間裡，有六筆貸款。所以藉款人數量很少。

And as you guys start to see the margin come up and get a little bit more comfortable with the overall earnings and profitability profile here in the back after the year, into 2025, do you think you start to revisit the buyback conversation?

當你們開始看到利潤率上升，並對 2025 年後的整體獲利和獲利狀況感到更加滿意時，你們認為你們會開始重新審視回購對話嗎？

Yeah, I certainly think that, that's something. I mean, we did buy back some stock in the first quarter of this year. That's something we look at every quarter along with the dividend and make those decisions. But certainly we have $13 million still under the buyback program that we have outstanding. So absolutely, we'd look at that.

是的，我當然認為，那是一件事。我的意思是，我們確實在今年第一季回購了一些股票。這是我們每季都會與股息一起考慮並做出決定的事情。但可以肯定的是，我們的回購計畫中仍有 1,300 萬美元尚未完成。所以絕對，我們會考慮這一點。

Great. Appreciate all the color. Thanks, Chris, Janet. Great quarter.

偉大的。欣賞所有的顏色。謝謝，克里斯，珍妮特。很棒的季度。

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

謝謝。我們的問答環節到此結束。我將請克里斯·貝克爾發表結束評論。

Yes. Thank you for your attention and participation on the call today. We remain focused on making the right decisions to increase shareholder value over the long term. I thank our employees for their continued dedication to service our customers and communities. Enjoy the upcoming weekend.

是的。感謝您對今天電話會議的關注與參與。我們仍然專注於做出正確的決策，以長期增加股東價值。我感謝我們的員工持續致力於為客戶和社區服務。享受即將到來的周末。