Five Star Bancorp (FSBC) 2023 Q3 法說會逐字稿

Welcome to the Five Star Bancorp Third Quarter Earnings Webcast. Please note, this is a closed conference call, and you are encouraged to listen via the webcast.

歡迎收看五星級銀行第三季財報網路廣播。請注意，這是一次閉門電話會議，我們鼓勵您透過網路廣播收聽。

After today's presentation, there will be an opportunity for those provided with a dial-in number to ask a question.

今天的演講結束後，那些擁有撥入號碼的人將有機會提問。

(Operator Instructions)

（操作員說明）

Before we get started, let me remind you that today's meeting will include some forward-looking statements within the meaning of applicable securities laws. These forward-looking statements relate to, among other things, current plans, expectations, events and industry trends that may affect the company's future operating results and financial position. Such statements involve risks and uncertainties and future activities and results may differ materially from these expectations.

在我們開始之前，讓我提醒您，今天的會議將包括一些適用證券法含義內的前瞻性陳述。這些前瞻性陳述涉及可能影響公司未來營運績效和財務狀況的當前計劃、預期、事件和行業趨勢等。此類陳述涉及風險和不確定性，未來的活動和結果可能與這些預期有重大差異。

For a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from the company's forward-looking statements, please see the company's annual report on Form 10-K for the year ended December 31, 2022, and quarterly report on Form 10-Q for the quarter ended June 30, 2023, and in particular, the information set forth in Item 1A, Risk Factors in those reports.

有關可能導致實際結果與公司前瞻性陳述存在重大差異的風險和不確定性的更完整討論，請參閱本公司截至2022 年12 月31 日的10-K 表格年度報告以及2022 年12 月31 日的季度報告。截至 2023 年 6 月 30 日的季度的 10-Q 表，特別是這些報告中第 1A 項「風險因素」中列出的資訊。

Please refer to Slide 2 of the presentation, which includes disclaimers regarding forward-looking statements, industry data and non-GAAP financial information included in this presentation. Reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures are included in the appendix to the presentation.

請參閱簡報的投影片 2，其中包括有關本簡報中的前瞻性陳述、行業數據和非 GAAP 財務資訊的免責聲明。非公認會計原則財務指標與其最直接可比較的公認會計原則指標的調節表包含在簡報的附錄中。

Please note this event is being recorded. I would now like to turn the presentation over to James Beckwith, Five Star Bancorp, President and CEO. Please go ahead.

請注意此事件正在被記錄。現在我想將演講交給五星級銀行總裁兼執行長 James Beckwith。請繼續。

Thank you for joining us to review Five Star Bancorp's financial results for the Third Quarter of 2023. Joining me today is Heather Luck, Senior Vice President and Chief Financial Officer.

感謝您與我們一起回顧五星級銀行 2023 年第三季的財務業績。今天與我一起的是高級副總裁兼財務長 Heather Luck。

Our comments today will refer to the financial information that was included in the earnings announcement released yesterday. To obtain a copy of the release, please visit our website at fivestarbank.com and click on the Investor Relations tab.

我們今天的評論將參考昨天發布的收益公告中包含的財務資訊。要獲取新聞稿的副本，請訪問我們的網站 Fivestarbank.com 並點擊「投資者關係」標籤。

During the 3-months ended September 30, 2023, our return on average assets and return on average equity were 1.30% and 16.09%, respectively, positioning us to remain near the top of our peer group. In the Third Quarter, we enhanced our expansion into the Bay Area market with an addition of another seasoned team of professionals.

截至 2023 年 9 月 30 日的三個月內，我們的平均資產回報率和平均股本回報率分別為 1.30% 和 16.09%，使我們在同行中保持領先地位。第三季度，我們增加了另一支經驗豐富的專業團隊，加強了對灣區市場的擴張。

Our organic growth story also continued in the Third Quarter with the addition of new deposit accounts and relationships as seen in the growth of Non-brokered deposits of $137.5 million in the 3-months ended September 30, 2023.

我們的有機成長故事也在第三季度繼續，增加了新的存款帳戶和關係，截至 2023 年 9 月 30 日的三個月內非經紀存款增加了 1.375 億美元。

Despite expected headwinds on the horizon, our ability to conservatively underwrite as evidenced by a [51%] LTV on commercial real estate, managed expenses with our 42% efficiency ratio and deliver value to shareholders with our $0.20 per share dividend, we believe we are well positioned to continue to endure and succeed as conditions change.

儘管預計會出現不利因素，但我們有能力保守地承保，商業房地產的 LTV 為 51%，我們以 42% 的效率管理費用，並以每股 0.20 美元的股息為股東創造價值，我們相信我們處於有利地位，能夠隨著條件的變化繼續忍受並取得成功。

In the company overview section, we have provided a brief overview of our geographic footprint and executive management team. In the Third Quarter of 2023 exhibited continued execution of our growth strategy as evidenced by our earnings, expense management and balance sheet trends during the quarter. Additionally, loans, deposits and total assets have consistently grown since the prior periods.

在公司概述部分，我們簡要概述了我們的地理足跡和執行管理團隊。 2023 年第三季度，我們繼續執行成長策略，該季度的收益、費用管理和資產負債表趨勢證明了這一點。此外，貸款、存款和總資產自前期以來持續成長。

Our pipeline continues to remain solid at the end of the Third Quarter of 2023 within verticals we have historically operated in, as presented in the loan portfolio diversification slide. Loans held for investment increased during the quarter by $82.5 million or 2.82% from the prior quarter, primarily within the commercial real estate concentration of the portfolio.

到 2023 年第三季末，我們的管道在我們歷史上經營的垂直領域內繼續保持穩定，如貸款組合多元化幻燈片所示。本季持有的投資貸款增加了 8,250 萬美元，比上一季增加了 2.82%，主要集中在投資組合的商業房地產領域。

Loan originations during the quarter were approximately $134.6 million, while payoffs and paydowns were $52.1 million. Asset quality continues to remain strong. Though nonperforming assets have increased from the last several quarters as a result of financial challenges experienced by a small subset of our borrowers. They represent 0.07% of the portfolio.

本季發放的貸款約為 1.346 億美元，還款和還款額為 5,210 萬美元。資產品質持續保持強勁。儘管由於一小部分借款人面臨財務挑戰，不良資產在過去幾季有所增加。他們佔投資組合的0.07%。

At the end of the Third Quarter, the allowance for credit losses totaled $34.0 million, we recorded a $1.1 million provision for credit losses during the quarter, primarily related to loan growth, loan type mix and updates to the macro environment. The ratio of the allowance for credit losses to total loans held for investment was 1.13% at quarter end.

截至第三季末，信貸損失準備金總額為 3,400 萬美元，本季我們記錄了 110 萬美元的信貸損失撥備，主要與貸款成長、貸款類型組合和宏觀環境更新有關。季末信用損失準備佔投資性貸款總額的比率為1.13%。

Loans designated as substandard totaled approximately $2.0 million at the end of the quarter, which was an increase from $0.3 million at the end of the previous quarter.

截至本季末，被指定為次級標準的貸款總額約為 200 萬美元，較上一季末的 30 萬美元有所增加。

Now that we have discussed the loan portfolio, we will continue on to deposits and capital. During the Third Quarter, deposits increased $102.5 million or 3.5% as compared to the previous quarter. Noninterest-bearing deposits as a percent of total deposits at the end of the Third Quarter decreased slightly to $27.5 million (sic) [27.5%] from 28.4% at the end of the previous quarter.

現在我們已經討論了貸款組合，我們將繼續討論存款和資本。第三季存款較上一季增加 1.025 億美元，增幅 3.5%。第三季末無息存款佔總存款的百分比從上一季末的 28.4% 略有下降至 2,750 萬美元（原文如此）[27.5%]。

To offer more detail on our deposit composition, I want to highlight that deposit relationships totaling at least $5 million constituted approximately 62% of our total deposits, and the average age on these accounts was approximately 9-years. Local agency depositors accounted for approximately 25% of deposits as of September 30, 2023.

為了提供有關我們存款組成的更多詳細信息，我想強調的是，總計至少 500 萬美元的存款關係約占我們總存款的 62%，這些帳戶的平均年齡約為 9 年。截至2023年9月30日，當地機構存款人約佔存款的25%。

As noted earlier, we are pleased we have net deposit inflows for the 3-months ended September 30, 2023. Our ability to grow deposit accounts supports our differentiated customer-centric model that our customers trust and value. As seen through the mix of high dollar accounts and the duration of certain customer relationships, we believe we have a reliable core deposit base.

如前所述，我們很高興截至 2023 年 9 月 30 日的三個月內實現了淨存款流入。我們增加存款帳戶的能力支持了我們客戶信任和重視的以客戶為中心的差異化模式。從高美元帳戶和某些客戶關係的持續時間來看，我們相信我們擁有可靠的核心存款基礎。

Overall, deposit balances have increased when compared to the prior quarter. Non-brokered deposits increased by $137.5 million, interest-bearing deposits increased by $101.7 million and non-interest-bearing deposits increased by $0.8 million. Total cost of deposits was 218 basis points during the Third Quarter.

整體而言，存款餘額較上一季增加。非經紀存款增加 1.375 億美元，有息存款增加 1.017 億美元，無息存款增加 80 萬美元。第三季的總存款成本為 218 個基點。

We continue to be well capitalized with all capital ratios well above regulatory thresholds for the quarter. Our common equity Tier 1 ratio increased from 9.05% to 9.07% between June 30, 2023, and September 30, 2023.

我們的資本充足，本季所有資本比率均遠高於監理門檻。 2023年6月30日至2023年9月30日期間，我們的普通股一級資本比率從9.05%增加至9.07%。

On Friday, October 20, we announced a declaration by our Board, a cash dividend of $0.20 per share on the company's voting common stock expected to be paid on November 13, 2023, to shareholders of record as of November 6, 2023. On that note, I will hand it over to Heather to discuss the results of operations. Heather?

10 月 20 日星期五，我們宣布董事會宣布，預計將於 2023 年 11 月 13 日向截至 2023 年 11 月 6 日登記在冊的股東派發公司有投票權的普通股每股 0.20 美元的現金股息。請注意，我會將其交給希瑟討論營運結果。希瑟？

Thank you, James, and hello, everyone. Net income for the quarter was $11 million. Return on average assets was 1.3% and return on average equity was 16.09%. Average loan yield for the quarter was 5.57%, representing an increase of 7 basis points over the prior quarter as rate increases continued with fourth increase this year taking place in July.

謝謝你，詹姆斯，大家好。該季度淨利潤為 1100 萬美元。平均資產報酬率為1.3%，平均股本報酬率為16.09%。本季平均貸款收益率為 5.57%，較上一季上升 7 個基點，升息仍在繼續，今年 7 月已進行第四次升息。

Our net interest margin was 3.31% for the quarter while net interest margin for the prior quarter was 3.45%. The most recent Fed rate increase continues to put pressure on deposit costs.

本季淨利差為 3.31%，上一季淨利差為 3.45%。聯準會最近的升息繼續給存款成本帶來壓力。

As a result of changes in interest rates and other factors, our other comprehensive loss was $3 million during the 3 months ended September 30, 2023, as unrealized losses, net of tax effect, increased on available-for-sale debt securities from $12.9 million as of June 30, to $15.9 million as of September 30, 2023.

由於利率和其他因素的變化，截至2023年9月30日的三個月內，我們的其他綜合損失為300萬美元，因為可供出售債務證券的未實現損失（扣除稅收影響）從1290萬美元增加截至 6 月 30 日，截至 2023 年 9 月 30 日增至 1,590 萬美元。

Non-interest income decreased to $1.4 million in the Third Quarter from $2.8 million in the previous quarter, due primarily to a $1.3 million gain in other income recognized on distributions received on investments and venture-backed funds during the 3-months ended June 30.

第三季非利息收入從上一季的280 萬美元降至140 萬美元，主要是由於截至6 月30 日的三個月內投資和風險支持基金收到的分配中確認的其他收入增加了130萬美元。

Non-interest expense grew by $36,000 in the 3-months ended September 30 as compared to the 3-months ended June 30, primarily due to a $0.5 million increase in salaries and employee benefits, which was partially offset by decreases of $0.3 million and $0.2 million in other operating and advertising and promotional expenses.

與截至6 月30 日的三個月相比，截至9 月30 日的三個月非利息支出增加了36,000 美元，主要是由於工資和員工福利增加了50 萬美元，但部分被減少30 萬美元和0.2 美元所抵銷百萬其他營運及廣告和促銷費用。

Now that we've discussed the overall results of operations, I will now hand it back to James to provide some closing remarks.

現在我們已經討論了整體營運結果，現在我將把它交還給詹姆斯，以提供一些結束語。

Thank you, Heather. I want to thank everyone for joining us as we discuss Third Quarter results. Five Star Bank has a reputation built on trust, speed to serve and certainty of execution which supports our clients' success.

謝謝你，希瑟。我要感謝大家加入我們討論第三季業績。五星級銀行的聲譽建立在信任、服務速度和執行確定性之上，支持我們客戶的成功。

Our financial performance is the result of a truly differentiated customer experience, which continues to power the demand for Five Star Bank's relationship-based services. We attribute sustained success to our prudent business model and treating customers with an empathetic spirit, understanding and care, we are very proud to earn the trust of those we serve, including our shareholders.

我們的財務表現是真正差異化的客戶體驗的結果，這將繼續推動對五星級銀行基於關係的服務的需求。我們將持續的成功歸功於我們審慎的商業模式以及以同理心、理解和關懷的態度對待客戶，我們非常自豪能夠贏得我們所服務的人（包括我們的股東）的信任。

In the Third Quarter, our efforts were recognized as we were listed among Piper Sandler's Sm-All Stars for 2023 as a top-performing small-cap bank, acknowledged for outperformance in several metrics, including growth, profitability, asset quality and capital. We were also listed among Sacramento Business Journal's Best Places to Work.

第三季度，我們的努力得到了認可，我們被Piper Sandler 評為2023 年表現最佳的小型銀行，在增長、盈利能力、資產質量和資本等多項指標上表現出色，被評為表現最佳的小型銀行。我們也被《薩克拉門托商業雜誌》評為最佳工作場所。

Looking to the remainder of 2023, we will be guided by a continued focus on shareholder value as we monitor market conditions. We are confident in the company's resilience in any environment and remain focused on the future and our long-term strategy. We will continue to execute our organic growth and disciplined business practices, which we believe will benefit our customers, employees, community and shareholders. We appreciate your time today. This concludes today's presentation. Now Heather and I will be happy to take any questions you may have.

展望 2023 年剩餘時間，我們在監控市場狀況時將持續專注於股東價值。我們對公司在任何環境下的復原能力充滿信心，並繼續專注於未來和我們的長期策略。我們將繼續執行我們的有機成長和嚴格的業務實踐，我們相信這將使我們的客戶、員工、社區和股東受益。我們非常感謝您今天抽出時間。今天的演講到此結束。現在希瑟和我很樂意回答您的任何問題。

We will now begin the questions and answer session.

我們現在開始問答環節。

(Operator Instructions) The first question today comes from Gary Tenner with D.A. Davidson.

（操作員說明）今天的第一個問題來自 D.A. 的 Gary Tenner。戴維森。

Wanted to ask about the loan growth this quarter. The commercial real estate growth looked pretty concentrated between Manufactured home community, RV Park and multifamily. So just wondering what you could tell us about kind of the ongoing demand, particularly in those loan areas. And maybe what the new loans coming on board right now, what they look like from a kind of debt service coverage, LTV, any kind of underlying metrics around the new loan production there?

想詢問本季的貸款成長情況。商業房地產的成長看起來相當集中在活動房屋社區、房車公園和多戶住宅之間。因此，我想知道您能告訴我們有關持續需求的信息，特別是在那些貸款領域。也許現在出現的新貸款是什麼，從償債覆蓋率、LTV 以及圍繞新貸款生產的任何基本指標來看，它們是什麼樣的？

Sure. Well, Gary, things have slowed. We expect to see that in the Fourth Quarter and probably well into the First Quarter, given where cap rates are and interest rates are generally speaking. In our underwriting for all of our loan portfolio, new originations, it's been very consistent over the years and we haven't changed anything. We do have higher standards for out-of-state credit than in-state credit. So it's been very consistent.

當然。好吧，加里，事情變慢了。考慮到資本化率和利率的整體情況，我們預計會在第四季甚至第一季看到這種情況。多年來，我們對所有貸款組合、新貸款的承保一直非常一致，我們沒有做出任何改變。我們對州外信貸的標準確實比州內信貸更高。所以它非常一致。

We continue to focus on Manufactured home communities and RV Parks, and we expect to see similar in the Fourth Quarter. But we are starting to grow our C&I book. So we're hopefully -- that can be attractive business proposition for our prospects to come bank with us. We do have a pretty significant effort going on, Gary, right now down in the Bay Area, but also up here in the Sacramento in the capital region, if you will.

我們繼續關注活動房屋社區和房車公園，預計第四季度會出現類似情況。但我們正在開始增加我們的 C&I 書籍。因此，我們希望這對我們的客戶來說是一個有吸引力的商業主張。加里，我們確實正在進行一項相當重大的努力，現在在灣區，但如果你願意的話，也在首都地區的薩克拉門托。

So nothing's really changed from an underwriting perspective. I think you can see in the deck what our LTVs are, and we're very much cash flow lenders. So we always like to have a very nice cash flow. I think $135 million is at origination in terms of our mobile home park book of business, but we've been very consistent over the years.

因此，從承保的角度來看，沒有什麼真正改變。我想你可以在甲板上看到我們的LTV是什麼，我們很大程度上是現金流貸款人。所以我們總是希望擁有非常好的現金流。我認為我們的活動房屋公園業務最初為 1.35 億美元，但多年來我們一直非常穩定。

Great, James. I appreciate that. And then a second question, I don't know that I saw it in the deck, so I apologize if I missed it, but the deposit spot rate as of September 30, Heather, if you could provide that for us either interest-bearing or total deposits?

太棒了，詹姆斯。我很感激。然後是第二個問題，我不知道我在甲板上看到了它，所以如果我錯過了，我很抱歉，但是截至9 月30 日的存款即期利率，希瑟，如果您能為我們提供的話，或者是計息或存款總額？

Yes. Total spot rate was [224].

是的。總即期匯率為[224]。

Okay. The average was [218]. So was there a kind of notable slowdown in the pace of change over the course of the Third Quarter?

好的。平均值為[218]。那麼，第三季的變革步伐是否明顯放緩？

Yes, very much so. There's still pressure, but I think that the pace of change has slowed. It's -- we're very -- a lot of our customers, given that we have such a big book in our local agency are very rate sensitive. And so it's really depending upon what the Fed does, we could see some reaction there. But the pace of change has slowed.

是的，非常如此。壓力仍然存在，但我認為改變的步伐已經放緩。鑑於我們當地代理商擁有如此大的書籍，我們的許多客戶對費率非常敏感。因此，這實際上取決於聯準會的行動，我們可能會看到一些反應。但變化的步伐已經放緩。

The next question comes from Andrew Terrell with Stephens.

下一個問題來自安德魯·特雷爾和史蒂芬斯。

Good morning. I wanted to ask about some of the recent expansion of the Bay Area. It looked like the teams there or the team there did $29 million of deposits in the Third Quarter, so obviously kind of hitting the ground running. I was just curious are those mostly non-interest-bearing deposits? I know there's a more C&I-oriented focus there.

早安.我想問一下最近灣區擴建的一些情況。看起來那裡的團隊或那裡的團隊在第三季存款了 2900 萬美元，所以顯然正在開始運作。我只是好奇那些大部分都是無利息存款嗎？我知道那裡有更多以 C&I 為導向的焦點。

So were they mostly NIBs or was it across the board? And then separately, just anything on the loan production side from those teams this quarter and just how the pipeline is shaping up there for both deposits and for loans?

那麼他們主要是NIB還是全面性的？然後分別了解本季度這些團隊在貸款生產方面的情況以及存款和貸款的管道情況如何？

Sure. Right now, as we sit here today, I think we've got about $38 million in deposits from our Bay Area folks, San Francisco folks. I think that that's equally split between non-interest-bearing and interest-bearing. And the reason for that is the typical account that we're picking up right now.

當然。現在，當我們今天坐在這裡時，我認為我們已經從灣區人民、舊金山人民那裡獲得了大約 3800 萬美元的存款。我認為無息和有息之間的比例是相等的。原因是我們現在正在使用的典型帳戶。

We're getting their operating account, Andrew, but we're also getting their liquidity so when you kind of mush those together, we're looking anywhere depending upon the relationship of those balances anywhere between 2% to 2.5% all in. So we expect that to be same or similar.

我們得到了他們的營運帳戶，安德魯，但我們也得到了他們的流動性，所以當你把它們混在一起時，我們會根據這些餘額之間的關係尋找任何地方，總金額在2% 到2.5%之間。所以我們期望這是相同或相似的。

From a lending perspective, I think we've got $5 million of credit book so far. A lot of it is C&I. There's some CRE, the most of it of it is lines of credit. As we move forward, we expect same and similar in terms of credit, mostly C&I, but having some smattering of CRE in there. And that really is owner-occupied whereas a distribution company has got a warehouse that they want us to finance. And we want the entire relationship, so we'll take -- we'll pick up that piece of CRE, a line of credit and then of course, all their operating accounts and their liquidity. So it's an all-in relationship.

從貸款的角度來看，我認為到目前為止我們已經有 500 萬美元的信用帳簿。其中很多是 C&I。有一些商業地產，其中大部分是信貸額度。隨著我們的前進，我們預期信貸方面會相同且相似，主要是商業和工業，但也有一些商業房地產。這確實是業主自用，而分銷公司擁有一個倉庫，他們希望我們提供資金。我們想要整個關係，所以我們將獲得 CRE 的一部分、信用額度，當然還有他們所有的營運帳戶和流動性。所以這是一種全面的關係。

Yes. Understood. Okay. I appreciate it. And then just going back to the point on loan growth. I heard some of the commentary that maybe production was slowing down. I think we certainly saw that this quarter at $135 million of originations. Would your expectation be that origination levels moderate from that $135 million into the Fourth Quarter?

是的。明白了。好的。我很感激。然後回到貸款成長的問題。我聽到一些評論說生產可能正在放緩。我認為本季我們確實看到了 1.35 億美元的起源。您是否期望第四季的發起水準從 1.35 億美元開始放緩？

And then just overall, could you share maybe your expectations for kind of net balance sheet growth, both loan and deposit growth moving forward?

總的來說，您能否分享一下您對資產負債表淨成長（包括未來貸款和存款成長）的預期？

Sure. we're seeing a slowdown in loan production given market conditions. So I don't expect it will originate that level in Fourth Quarter. I would say probably as we sit here today, we probably are going to do probably something $10 million to $20 million less than that. We do expect some payoffs, so our net loan growth in the Fourth Quarter will probably be no better than it was in the Third Quarter. I think that's probably a safe statement.

當然。鑑於市場狀況，我們看到貸款生產放緩。所以我預計它不會在第四季達到這個水平。我想說，當我們今天坐在這裡時，我們可能會做比這少 1000 萬到 2000 萬美元的事情。我們確實預計會得到一些回報，因此第四季的淨貸款成長可能不會比第三季好。我認為這可能是安全的聲明。

From a depository perspective, we've got a pretty substantial pipeline probably more so than we've had in the last 6 to 9 months, we've got some potentially very -- some -- very large customers coming on and that relate to some of the verticals in which we're in. So we're excited about that. But again, these things take time. And we do expect our deposit growth to exceed our loan growth in the Fourth Quarter. I think you could see that we did that marginally in the Third Quarter, and we expect same or similar results in the Fourth Quarter but at reduced levels, certainly on the loan side, maybe not so much on the deposit side, but certainly on the loan side.

從託管的角度來看，我們有一個相當大的管道，可能比過去 6 到 9 個月的管道還要多，我們有一些潛在的非常大的客戶，這與我們所處的一些垂直領域。所以我們對此感到興奮。但同樣，這些事情需要時間。我們確實預計第四季度的存款成長將超過貸款成長。我想你可以看到我們在第三季度略微做到了這一點，我們預計第四季度會出現相同或相似的結果，但水平會有所下降，當然是在貸款方面，也許在存款方面沒有那麼多，但肯定是在存款方面貸款方。

And as we look through to 2024 also, I know we've given this guidance before, but we are still looking at 10% loan growth, 8% deposit growth -- oh sorry, flip that, 10% deposit growth, 8% loan growth for the forecast period.

當我們展望2024 年時，我知道我們之前已經給出了這一指導，但我們仍在考慮10% 的貸款增長、8% 的存款增長——哦，抱歉，翻轉一下，10% 的存款增長、 8% 的貸款預測期內的成長。

I think we're pretty much right on top of that year-to-date, maybe a little lower on deposits, but right about that on loans. But certainly, deposit growth has exceeded loan growth.

我認為我們今年迄今的表現基本上正確，存款方面可能略低一些，但貸款方面則基本正確。但可以肯定的是，存款成長超過了貸款成長。

Yes. I appreciate it. And the last one for me, the $135 million of originations made this quarter. Do you know what the weighted average yield was for new originations?

是的。我很感激。對我來說，最後一個是本季創造的 1.35 億美元的收入。您知道新產品的加權平均報酬率是多少嗎？

Yes. That was 7.70%.

是的。那是7.70%。

7.70%. Got it.

7.70%。知道了。

The next question comes from Gary Tenner with D.A. Davidson.

下一個問題來自 D.A. 的加里·坦納 (Gary Tenner)。戴維森。

Heather, I just want to clarify the comment you just made upon the loan and deposit growth. That was relative to 2023?

希瑟，我只想澄清你剛才對貸款和存款成長的評論。那是相對於 2023 年而言的嗎？

Correct, annual...

沒錯，每年...

Any kind of early thoughts on the kind of similar metrics and outlook for 2024?

對於 2024 年的類似指標和展望，您有什麼早期想法嗎？

Yes, a similar thing, 10% deposits, 8% loans.

是的，類似的事情，10%的存款，8%的貸款。

The next question comes from Andrew Terrell with Stephens.

下一個問題來自安德魯·特雷爾和史蒂芬斯。

Heather, I wanted to get an idea, I mean you guys have certainly done a good job in hiring this year. But when I look at expenses, the expense run rate has also been, I'd call it pretty well contained.

希瑟，我想知道一下，我的意思是你們今年在招募方面確實做得很好。但當我查看費用時，費用運行率也一直是，我認為它得到了很好的控制。

I wanted to get your thoughts on maybe the expense run rate heading into the Fourth Quarter? And then any preliminary thoughts on expense growth in 2024?

我想了解您對第四季費用運行率的看法？那麼對 2024 年費用成長有什麼初步想法嗎？

So for -- thank you for acknowledging that. We're always mindful on our expenses, right. We want to make sure that we are spending money effectively and efficiently. For Q4, whenever we look at this, I think if you add about $500,000 to the non-interest expenses, that should give you a pretty good estimate.

因此，感謝您承認這一點。我們總是注意我們的開支，對吧。我們希望確保我們有效且有效率地花錢。對於第四季度，每當我們看到這一點時，我認為如果您在非利息支出中添加約 500,000 美元，這應該會給您一個相當不錯的估計。

We did hire new people in the Bay, we'll continue to add more people. But we also do have some one-time events that happened in Q4. So I think about $500,000 can get you there for the rest of the year. And then I think you could probably use that as a proxy for the first 2 quarters of next year.

我們確實在灣區僱用了新員工，我們將繼續增加更多員工。但我們也確實在第四季發生了一些一次性事件。所以我認為大約 50 萬美元可以讓你在今年剩下的時間裡達到這個目標。然後我認為您可能可以用它作為明年前兩個季度的代理商。

Okay. So around a $12.5 million quarter level, feels good?

好的。那麼季度 1250 萬美元左右的水平感覺不錯嗎？

I think that's a pretty good estimate for now for the next 3 quarters.

我認為目前對未來三個季度的預測相當不錯。

Okay. Perfect. And then maybe one more for James. Just to that point on hiring and the teams that you've added. I mean, certainly, it's been great to see. Where do you feel like you stand today? Is there a need in your mind to continue hiring or continue -- to continue building out the Bay Area? Or do you feel like you have what you need there in place already today? And then anywhere else across your footprint where you're seeing market opportunity? And what's your kind of appetite to incrementally hire from here?

好的。完美的。也許詹姆斯還會再有一個。關於招募和您添加的團隊就到此為止。我的意思是，當然，很高興看到。你覺得今天你站在哪裡？您認為是否需要繼續招募或繼續建造灣區？或者您覺得今天已經擁有您需要的東西了嗎？那麼在您的業務範圍內的其他任何地方您都看到了市場機會嗎？您對從這裡增加招募的興趣是什麼？

Well, we think we have a little ways to go in the Bay Area, Andrew. We're targeting probably 4 to 5 more people. When they come on, they may come on in January. And I think or maybe at least 1 will be coming on here before the end of the quarter. So we think with that team, we're going to be in very good shape in San Francisco Proper and the surrounds.

安德魯，我們認為我們在灣區還有很長的路要走。我們的目標可能是另外 4 到 5 個人。當他們上場時，他們可能會在一月上場。我認為或至少有 1 個人會在本季末之前來到這裡。因此，我們認為，有了這支團隊，我們將在舊金山及其周邊地區保持良好的狀態。

Now there are several potential hires that are in the Bay Area, whether they'd be in the North Bay or in the East Bay that we've -- we're starting those dialogues. So ultimately, we could have upwards of 20 people in the Bay that are covering all aspects of that market down there. So we just have to see how time goes right now.

現在灣區有幾位潛在的員工，無論他們是在北灣還是東灣，我們正在開始這些對話。因此，最終，我們在海灣地區可能有超過 20 名員工，負責該市場的各個方面。所以我們只需要看看現在時間過得怎麼樣。

Right now, we have 9 people. And we've got some folks that are pretty near term right now in terms of potential hires we've met with them several times. There's a cycle that occurs down there given all the turmoil, if you will, various stagings for, I'm going to say, stay bonuses and whatnot that we're sensitive to, that you have to kind of take into account and comprehend.

現在，我們有9個人。我們已經與一些人進行了多次會面，就潛在聘用而言，我們現在已經非常接近他們了。考慮到所有的動盪，如果你願意的話，那裡會發生一個循環，我要說的是，留存獎金和其他我們敏感的東西，你必須考慮和理解。

So I think that, that is a consideration, a driver in terms of timing. So we just have to stay close and look for the best opportunities. And we're getting some really quality people. They're expensive, but they're of high quality.

所以我認為，這是一個考慮因素，是時間上的驅動因素。所以我們必須保持密切聯繫並尋找最好的機會。我們正在招募一些非常優秀的人才。它們價格昂貴，但品質很高。

Yes. Very good. I appreciate the color. If I could sneak one more in just on the margin, Heather. I appreciate the counter on the spot rate, and it does look like the deposit costs really kind of slowed into quarter end. I guess -- when you pair that with the other side of the balance sheet, does it feel like the margin is kind of at a point of inflection heading into the Fourth Quarter? Or would you expect maybe some further compression in 4Q or early into 1Q?

是的。非常好。我很欣賞它的顏色。如果我能在邊緣再偷一次的話，希瑟。我很欣賞即期利率的走勢，而且看起來存款成本確實在季度末有所放緩。我想，當你將其與資產負債表的另一面結合時，是否感覺到利潤率正處於進入第四季的轉折點？或者您預計第四季或第一季初可能會進一步壓縮？

Yes, we will see some compression. There's definitely some pressure. We're targeting right now to be between 3.25 and 3.30 on our NIM. And I think that's a pretty good assumption for Q4 and Q1.

是的，我們會看到一些壓縮。壓力肯定是有的。我們現在的目標是淨利差 (NIM) 介於 3.25 和 3.30 之間。我認為這對於第四季和第一季來說是一個非常好的假設。

Yes. Okay. So relatively stable to 3Q levels, maybe off a few basis points or so.

是的。好的。因此，第三季的水平相對穩定，可能會下降幾個基點左右。

That's correct.

這是正確的。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

（操作員說明）我們的問答環節到此結束。我想將會議轉交管理層發表閉幕詞。

Great. Thank you. Five Star Bancorp is on a continued path of growth as we execute on strategic initiatives which include growing our verticals and geographies while attracting and retaining talent. Our people, technology, operating efficiencies, conservative underwriting practices and expense management have also contributed to the success we share with our employees and shareholders. We are very pleased with the recent industry recognition from Piper Sandler and the Sacramento Business Journal.

偉大的。謝謝。五星級銀行正走在持續成長的道路上，我們執行策略性舉措，包括發展我們的垂直產業和地理，同時吸引和留住人才。我們的人員、技術、營運效率、保守的承保實務和費用管理也為我們與員工和股東分享成功做出了貢獻。我們對 Piper Sandler 和《薩克拉門托商業雜誌》最近獲得的業界認可感到非常高興。

We were also pleased, the company maintains a Bauer Financial Superior Rating of 5 out of 5 stars and an IDC Superior Rating. The company is also a super performing bank with the Findley Reports. We are driving force for economic development, a trusted resource for our customers and a committed advocate for our community. We look forward to speaking with you again in January to discuss earnings for the Fourth Quarter of 2023. Have a great day, and thanks for listening.

我們也很高興該公司保持了 5 顆星（滿分 5 顆星）的 Bauer 財務高級評級和 IDC 高級評級。根據芬德利報告，該公司也是一家表現優異的銀行。我們是經濟發展的驅動力，是客戶值得信賴的資源，也是社區的堅定倡導者。我們期待 1 月再次與您交談，討論 2023 年第四季的收益。祝您有美好的一天，感謝您的聆聽。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。