Five Star Bancorp (FSBC) 2024 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to the Five Star Bancorp second quarter 2024 earnings webcast.

大家下午好，歡迎收看五星級銀行 2024 年第二季財報網路廣播。

(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.

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。

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.

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。

Such statements involve risks and uncertainties and future activities and results may differ materially from these expectations.

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 ending September 30, 2023.

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 日的年度報告 10-K 以及季度報告截至2023 年9 月30 日的季度的10-Q 表。

And in particular, the information set forth in Item 1A Risk Factors in those reports.

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 the presentation.

請參閱簡報的投影片 2，其中包括有關簡報中前瞻性陳述、行業數據和非公認會計原則財務資訊的免責聲明。

Reconciliations of non-GAAP financial measures to their most directly comparable GAAP figures are included in the appendix of the presentation.

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資料的調節表包含在簡報的附錄中。

Please note this event is being recorded.

請注意此事件正在被記錄。

At this time, I'd like to turn the conference call over to James Beckwith, Five Star Bancorp, President and CEO.

現在，我想將電話會議轉交給五星級銀行總裁兼執行長 James Beckwith。

Please go ahead.

請繼續。

Thank you for joining us to review Five Star Bancorp's financial results for the second quarter of 2024.

感謝您與我們一起回顧五星級銀行 2024 年第二季的財務表現。

Joining me today is Heather Luck, Senior Vice President and Chief Financial Officer.

今天加入我的是資深副總裁兼財務長 Heather Luck。

Our comments today will refer to the financial information that was included in the earnings announcement released yesterday.

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。

To obtain a copy of the release, please visit our website at fivestarbank.com and click on the Investor Relations tab.

要獲取該新聞稿的副本，請訪問我們的網站 Fivestarbank.com 並點擊「投資者關係」標籤。

Our organic growth story continued in the second quarter with the successful close of our public offering resulting in the issuance of 3,967,500 additional shares of common stock with net proceeds of approximately $80.9 million, allowing us to continue our momentum in the San Francisco Bay Area.

我們的有機成長故事在第二季度繼續進行，我們的公開發行成功結束，額外發行了 3,967,500 股普通股，淨收益約為 8090 萬美元，使我們能夠繼續在舊金山灣區的發展勢頭。

We added five more seasoned professionals to support this expansion and also continue to add new core deposit accounts and relationships as seen in the increase of nonwholesale deposits of $118.3 million during the three months ended June 30, 2024.

我們又增加了五名經驗豐富的專業人員來支持這一擴張，並繼續增加新的核心存款帳戶和關係，截至 2024 年 6 月 30 日的三個月內非批發存款增加了 1.183 億美元。

Despite continued external headwinds, we maintained our ability to conservatively underwrite, as evidenced by a 50% loan to value on commercial real estate, manage expenses with our 44% efficiency ratio and delivered value to our shareholders with our $0.2 per share dividend for the first and second quarters of 2024.

儘管外部不利因素持續存在，我們仍保持了保守承保的能力（商業房地產貸款價值比為 50%），以 44% 的效率管理費用，並以每股 0.2 美元的首次股息為股東創造了價值。 2024 年第二季。

The second quarter of 2024 exhibited continued execution of our growth strategy and efforts to position for future growth as evidenced by our earnings, expense management, and balance sheet trends during the quarter.

2024 年第二季度展示了我們對成長策略的持續執行以及為未來成長做好準備的努力，本季的收益、費用管理和資產負債表趨勢證明了這一點。

Additionally, we saw a positive turn in margin compression.

此外，我們也看到利潤率壓縮出現正向轉變。

And loans, total assets, and deposits have grown since prior periods.

貸款、總資產和存款較前期增長。

Our pipeline continues to remain solid at the end of the second quarter of 2024.

到 2024 年第二季末，我們的管道繼續保持穩定。

Within verticals we have historically operated in, as presented in the loan portfolio diversification slide.

正如貸款組合多元化幻燈片所示，我們歷史上一直在垂直領域開展業務。

Loans held for investment increased during the quarter by $162.2 million or 5.22% from the prior quarter, primarily relating to the purchase of loans with the consumer concentration of the loan portfolio, representing $73.3 million of the increase.

本季持有的投資貸款比上季增加了 1.622 億美元，增幅為 5.22%，主要與購買貸款組合中消費者集中的貸款有關，增加了 7,330 萬美元。

Total originations during the quarter were approximately $390 million, while payoffs and paydowns were $72.8 million and $155 million respectively.

本季的總發起額約為 3.9 億美元，支付額和付款額分別為 7,280 萬美元和 1.55 億美元。

Asset quality continues to remain strong.

資產品質持續保持強勁。

Though nonperforming loans increased in the beginning of the third quarter of 2023, they continued to represent only 0.06% of the portfolio at the end of the quarter.

儘管不良貸款在 2023 年第三季初有所增加，但截至季末仍僅佔投資組合的 0.06%。

At the end of the second quarter, the allowance for credit losses totaled $35.4 million.

截至第二季末，信貸損失準備金總額為3,540萬美元。

We reported a $2 million provision for credit losses during the quarter with loan growth and increases in net charge-offs as the leading drivers.

我們報告本季信貸損失準備金為 200 萬美元，其中貸款成長和淨沖銷增加是主要推動因素。

The allowance for credit losses to total loans held for investment was 1.08% at quarter end.

截至季末，信貸損失準備金佔投資貸款總額的比例為1.08%。

Loans designated as substandard totaled approximately $1.9 million at the end of the quarter, which is unchanged from 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 190 萬美元，與上一季末持平。

During the second quarter deposits increased by $193.9 million or 6.56% as compared to the previous quarter.

第二季存款較上一季增加 1.939 億美元，增幅 6.56%。

Non-interest bearing deposits as a percent of total deposits at the end of the second quarter decreased slightly from 26.2% -- to 26.2% from 27.7% at the end of the previous quarter.

無利息存款佔存款總額的比例從第二季末的26.2%小幅下降，從上季末的27.7%下降至26.2%。

As noted earlier, we are pleased we had a net non-wholesale deposit inflows for the three months ended June 30, 2024.

如前所述，我們很高興截至 2024 年 6 月 30 日的三個月內出現非批發存款淨流入。

Our ability to grow deposit accounts supports our differentiated customer-centric model that our customers trust and value.

我們增加存款帳戶的能力支持我們以客戶為中心的差異化模式，受到客戶的信任和重視。

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.

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。

To offer more detail on our deposit composition, I want to highlight that deposit relationships totaling at least $5 million constituted approximately 60% of total deposits and the average age of these accounts was approximately eight years.

為了提供有關我們存款構成的更多詳細信息，我想強調的是，總計至少 500 萬美元的存款關係約佔總存款的 60%，這些帳戶的平均年齡約為 8 年。

Local agency depositors accounted for approximately 22% of deposits as of June 30, 2024.

截至2024年6月30日，當地機構存款人約佔存款的22%。

Overall deposit balances have increased when compared to the prior quarter.

與上一季相比，整體存款餘額增加。

Wholesale deposits, which we defined as broker deposits and public time deposits increased by $75.5 million. Non-wholesale

批發存款（我們將其定義為經紀人存款和公共定期存款）增加了 7550 萬美元。非批發

deposits increased by $118.3 million, driven by a $110 million increase in non wholesale interest-bearing deposits and an $8.3 million increase in non-interest bearing deposits.

存款增加 1.183 億美元，主要是由於非批發有息存款增加 1.1 億美元，無息存款增加 830 萬美元。

Cost of total deposits was 247 basis points during the second quarter, a decrease of 6 basis points from the first quarter.

第二季總存款成本為247個基點，較第一季下降6個基點。

We continue to be well-capitalized with all capital ratios well above regulatory thresholds for the quarter.

我們的資本仍然充足，本季所有資本比率均遠高於監管門檻。

The additional common stock issued through the public offering that closed in April of 2024, is noticeable in our capital ratios for the second quarter.

透過 2024 年 4 月結束的公開發行發行的額外普通股在我們第二季的資本比率中很明顯。

Our common equity Tier 1 ratio increased from 9.13%, 11.28% between March 31, 2024, and June 30, 2024.

2024年3月31日至2024年6月30日期間，我們的普通股一級資本比率從9.13%上升至11.28%。

On July 18, our Board declared a cash dividend of $0.2 per share on the company's loading common stock expected to be paid on August 12, 2024, to shareholders of record as of August 5, 2024.

7 月 18 日，我們的董事會宣布向公司普通股派發每股 0.2 美元的現金股息，預計將於 2024 年 8 月 12 日向截至 2024 年 8 月 5 日登記在冊的股東支付。

On that note, I will hand it over to Heather to discuss the results of operations.

關於這一點，我將把它交給希瑟討論營運結果。

Heather?

希瑟？

Thank you, James, and hello, everyone.

謝謝你，詹姆斯，大家好。

Net income for the quarter was $10.8 million.

該季度淨利潤為 1080 萬美元。

Return on average assets was 1.23% and return on average equity was 11.72%.

平均資產報酬率為1.23%，平均股本報酬率為11.72%。

Average loan yield for the quarter was 5.83%, representing an increase of 12 basis points over the prior quarter.

本季平均貸款收益率為5.83%，較上季上升12個基點。

Our net interest margin was 3.39% for the quarter, while net interest margin for the prior quarter was 3.14%, with loan growth at higher yields and decreased reliance on wholesale deposits as the primary drivers.

本季淨利差為 3.39%，上一季淨利差為 3.14%，貸款成長的收益率較高且對批發存款的依賴減少是主要驅動力。

As a result of changes in interest rates and other factors, our other comprehensive income was $0.2 million during the three months ended June 30, 2024, as unrealized losses, net of tax effect decreased on available for sale debt securities from $12.4 million as of March 31, to $12.2 million as of June 30, 2024.

由於利率和其他因素的變化，截至2024 年6 月30 日的三個月內，我們的其他綜合收益為20 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）從截至3 月份的1,240 萬美元減少截至 2024 年 6 月 30 日，增至 1,220 萬美元。

Noninterest income decreased to $1.6 million in the second quarter from $1.8 million in the previous quarter due primarily to a reduction in gains from distributions received on equity investments in venture-backed funds during the three months ended June 30, 2024.

第二季非利息收入從上一季的 180 萬美元下降至 160 萬美元，主要原因是截至 2024 年 6 月 30 日的三個月內創投支持基金股權投資分配收益減少。

This decrease was partially offset by an increase in gains on the sale of loans during the three months ended June 30.

截至 6 月 30 日的三個月內，貸款銷售收益的增加部分抵消了下降。

Noninterest expense grew by $0.8 million in the three months ended June 30 compared to the three months ended March 31, primarily due to increases in commissions related to higher loan production, travel, conferences, and professional membership fees and sponsorships and donations during the quarter.

與截至3 月31 日的三個月相比，截至6 月30 日的三個月非利息支出增加了80 萬美元，主要是由於本季度貸款生產、差旅、會議和專業會員費以及贊助和捐贈增加導致佣金增加。

Now that we've discussed the overall results of operations.

現在我們已經討論了整體營運結果。

I will now hand it back to James to provide some closing remarks.

現在我將把它交還給詹姆斯，以提供一些結束語。

But thank you, Heather.

但謝謝你，希瑟。

I want to thank everyone for joining us as we discuss second quarter results.

我要感謝大家加入我們討論第二季業績。

Five Star Bank has a reputation built on trust we deserve and certainty of execution, which support our clients' success.

五星級銀行的聲譽建立在我們應得的信任和執行的確定性之上，這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.

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。

We attribute sustained success to our prudent business model and treating customers with an empathetic spirit, understanding, and care.

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、理解和關懷對待客戶。

We are very proud on the trust of those we serve, including our shareholders.

我們對我們所服務的人（包括我們的股東）的信任感到非常自豪。

As we continue to lean into 2024, we are guided by continued focus on shareholder value as we monitor market conditions.

隨著我們繼續邁向 2024 年，我們在監控市場狀況時將繼續專注於股東價值。

We are confident in the company's resilience in any environment and remain focused on the future and our long-term strategy.

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。

We will continue to execute on our organic growth and disciplined business practices, which we believe will benefit our customers, employees, community, and shareholders.

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。

We appreciate your time today.

我們非常感謝您今天抽出時間。

This concludes today's presentation.

今天的演講到此結束。

Now Heather and I will be happy to take any questions that you might have.

現在，希瑟和我很樂意回答您可能提出的任何問題。

(Operator Instructions)

（操作員說明）

Andrew Terrell, Stephens.

安德魯·特雷爾，史蒂芬斯。

Hey, good morning.

嘿，早安。

Hey good morning, Andrew.

嘿早上好，安德魯。

Maybe just to start off, can you talk a little bit about the consumer loan purchase in the quarter, kind of what these loans were specifically?

或許首先，您能否談談本季的消費貸款購買情況，這些貸款具體是什麼？

What kind of yield and the credit profile looks like there?

那裡的收益率和信用狀況是什麼樣的？

And then just more broadly talk about the strategy behind it, particularly kind of -- considering the recent capital raise and what it feels like as a ramping kind of organic growth profile?

然後更廣泛地談論其背後的策略，特別是考慮到最近的融資以及有機成長概況的感覺如何？

Sure.

當然。

These loans were originated by Bankers Health Group, BHG.

這些貸款由 Bankers Health Group, BHG 發起。

Their credit profile is very strong.

他們的信用狀況非常好。

I think I'm going to say mid-750 FICOs.

我想我會說 750 左右的 FICO。

These are professional individuals throughout the United States.

他們是遍布美國的專業人士。

We've been involved with BHG for several years now.

我們與 BHG 合作已有好幾年了。

And it had a really strong credit experience with loans that we've purchased from them.

我們從他們那裡購買的貸款擁有非常強大的信貸經驗。

We're buying them Andrew, at an 8.25% yield.

安德魯，我們以 8.25% 的收益率購買它們。

That was kind of the average yield for purchases in Q2.

這是第二季購買的平均收益率。

And they've been operating like this for several years now, very strong franchise.

他們這樣經營已經好幾年了，特許經營權非常強大。

A lot of banks throughout the United States utilize them.

美國許多銀行都使用它們。

We first got into it by wanting to make sure that we had appropriate coverage for our small business loans from a CRA perspective, and that's expanded given our very favorable credit experience with them.

我們首先希望從 CRA 的角度確保我們的小型企業貸款有適當的覆蓋範圍，並且考慮到我們與他們的非常良好的信貸經驗，這一範圍已經擴大。

So it's a shot in the arm.

所以這是一劑強心針。

Certainly, we're not going to rely on it in terms of overall growth of the loan portfolio.

當然，就貸款組合的整體成長而言，我們不會依賴它。

But it's additive.

但它是附加的。

It's coming on at a nice margin, nice rate, nice yield, and we like the credit characteristics.

它的利潤率很高，利率很高，收益率很高，而且我們喜歡它的信貸特徵。

Yes, understood.

是的，明白了。

Okay.

好的。

And was the purchase made -- do you have kind of a specific timing throughout the quarter?

購買是否已完成—您在整個季度有具體的時間安排嗎？

Just trying to get a better sense I mean, loan yields were up 12 basis points in the quarter and they in a quarter here obviously helps that.

我只是想更了解一下，我的意思是，本季貸款收益率上升了 12 個基點，而本季的貸款收益率顯然對此有所幫助。

Just trying to get a sense of whether there's some carry forward in the loan yields into 3Q?

只是想了解貸款收益率是否會結轉到第三季？

Yeah, you'll see that.

是的，你會看到的。

It was pretty much done the last half of the quarter.

這個季度的後半段就基本完成了。

And so I think that will carry forward into Q3 of 2024.

因此，我認為這將延續到 2024 年第三季。

We'll be looking at maybe doing some more of that, but time will tell.

我們可能會考慮做更多這樣的事情，但時間會證明一切。

But certainly that will carry forward in terms of in terms of overall impacting positively overall loan yields.

但可以肯定的是，這將對整體貸款收益率產生積極的整體影響。

Now there's a lot of other things that's affecting our loan yields too.

現在還有很多其他因素也在影響我們的貸款收益率。

The loans that were booking outside of that BHG purchaser or have rates from 7.5% to 8% in the quarter also.

該季度在 BHG 購買者之外預訂的貸款或利率也從 7.5% 到 8% 不等。

And we had a pretty strong quarter for loan originations outside of this, what I would call a wholesale play.

除此之外，我們的貸款發放季度表現相當強勁，我稱之為批發活動。

And we're also seeing some paydowns of the portfolio, lower rates being paid off.

我們也看到投資組合的一些回報，較低的利率得到了回報。

And so we're overall that's really pushing the loan yields up as you can see in our Q2 numbers.

因此，總體而言，正如您在我們的第二季數據中看到的那樣，這確實推高了貸款收益率。

Yeah.

是的。

Got it.

知道了。

Okay.

好的。

And then last for me, really quickly, just the SBA gain on sale income picked up this quarter.

最後對我來說，很快，SBA 的銷售收入收益在本季有所回升。

Was hoping you could just maybe update us as to what you're seeing within that business?

希望您能向我們介紹您在該業務中所看到的最新情況嗎？

Is this kind of lift upward in 2Q, durable and then just overall kind of expectations?

第二季的這種向上提升是否持續且只是整體預期？

Yeah. we don't expect it to be durable.

是的。我們並不期望它能夠持久。

In fact, we've kind of turned the sales of the origination function.

事實上，我們已經轉變了原創功能的銷售。

So with our expectations about gains on a go-forward basis or certainly less in Q3 and Q4 that we saw in the first half of the year.

因此，我們對第三季和第四季的成長的預期肯定會有所下降，就像我們在今年上半年看到的那樣。

And so where we've diminished the importance of that business, we're still an active lender, but we're not going to be originating any near the levels of volumes we've had historically.

因此，在我們降低了該業務重要性的情況下，我們仍然是一個活躍的貸款人，但我們的貸款量不會接近歷史水平。

And so we are -- our efforts from a loan origination perspective are really what we're doing on in the Bay Area and what we're doing in all our other verticals in terms of putting on credit, so gain on sales will definitely diminish some.

所以我們 - 從貸款發放的角度來看，我們的努力實際上是我們在灣區所做的事情，以及我們在所有其他垂直領域在信貸方面所做的事情，因此銷售收益肯定會減少一些。

You're probably running from 50 to 100 [Brannan] for the remainder of the year on a monthly basis.

在今年剩下的時間裡，你可能每月運行 50 到 100 [Brannan]。

Understood.

明白了。

Thank you for taking the questions.

感謝您提出問題。

I'll step back in the queue.

我會退到隊列中。

Thank you, Andrew.

謝謝你，安德魯。

Gary Tenner from D.A. Davidson.

來自 D.A. 的加里·坦納戴維森。

Thanks.

謝謝。

Good morning.

早安.

First I wanted to ask about the expense run rate a decent quarter-over-quarter pickup.

首先，我想問一下費用運行率是否有不錯的季度環比回升。

Does it look like there was anything particularly unusual in number, so I was curious for your thoughts for the back half of the year.

是不是有什麼特別不尋常的事情，所以我很好奇你下半年的想法。

Yeah.

是的。

So I was a little sure, I think whenever we did our estimate, we had a few more events and just overall conferences that we attended in Q2.

所以我有點確定，我認為每當我們進行估計時，我們都會有更多的活動以及我們在第二季度參加的整體會議。

So that drove drove our expenses a little higher.

因此，這導致我們的開支略高。

So I think for the run rate for the rest of the year, if you can add about $250,000 per quarter to what we incurred in Q2.

因此，我認為對於今年剩餘時間的運行率，如果您可以在第二季度的基礎上每季增加約 250,000 美元。

I think that will be a good run rate for the rest of the year.

我認為今年剩餘時間這將是一個良好的運行率。

We do have some exciting things happening in Q3, and we'll do our big celebration for our grand opening of our San Francisco branch in September.

我們在第三季確實發生了一些令人興奮的事情，我們將在 9 月為舊金山分公司的盛大開幕舉行盛大的慶祝活動。

So we'll have that as an added expense and then employee celebrations and things like that.

因此，我們會將其作為額外費用，然後進行員工慶祝活動等。

So I think to 50 would be a good run rate each quarter of an additional expense.

因此，我認為每季額外支出 50 美元是一個不錯的運行率。

Okay.

好的。

Appreciate it.

欣賞它。

And then on the deposit side, you talked about the split between kind of the growth in non-wholesale deposits, which was positive for the quarter.

然後在存款方面，您談到了非批發存款成長之間的分歧，這對該季度是積極的。

Obviously, the loan growth will outpace that.

顯然，貸款成長將超過這一速度。

So I'm just trying to get a sense of kind of your target comfort level on wholesale funding percentage where you are right now.

所以我只是想了解一下您現在對批發融資百分比的目標舒適度。

And I guess similar question around the loan-deposit ratio, which is a little over hundred percent right now.

我猜貸存比也有類似的問題，目前貸存比略高於百分之百。

Sure.

當然。

But we'll continue to lean into a wholesale deposits as a source of funding.

但我們將繼續依賴批發存款作為資金來源。

We did put on a $75 million appropriate deposit towards the end of it and of the quarter we're going to and we do anticipate rates declining.

我們確實在本季末和我們即將到來的季度存入了 7500 萬美元的適當存款，並且我們確實預計利率會下降。

So that particular type of funding may be more attractive as we as we look at the rate look at the remainder of the year, but it is a tool we could, Gary, if we wanted to we could have a loan deposit ratio that's significantly less than what it is right now because we have the availability to do so where we're trying to make sure that we act prudently really tried to protect our margin, and then but also make sure we have appropriate liquidity to fund the loans that have come on.

因此，當我們查看今年剩餘時間的利率時，這種特定類型的資金可能更具吸引力，但這是我們可以使用的工具，加里，如果我們願意，我們可以將貸款存款比率顯著降低比現在更好，因為我們有能力這樣做，我們試圖確保我們謹慎行事，真正努力保護我們的利潤，然後還要確保我們有適當的流動性來為已經發放的貸款提供資金。

You know, historically we've operated at less than that 100% loan to deposit ratio, and we were looking to kind of target 95% loan-to-deposit ratio and we could get there tomorrow if we chose to.

你知道，從歷史上看，我們的貸存比一直低於 100%，我們希望實現 95% 的貸存比目標，如果我們選擇的話，我們明天就能實現這一目標。

But we're really just trying to grow our core deposits and we've been successful in that.

但我們實際上只是在努力增加我們的核心存款，而且我們在這方面已經取得了成功。

But we just we need to see to continue to stay at it.

但我們只是需要繼續堅持下去。

And hopefully, we'll see some more visibility of that in the in Q3 and Q4, for example.

希望我們能在第三季和第四季看到更多的可見度。

Thank you very much.

非常感謝。

Woody Lee from KBW.

KBW 的伍迪李。

Hey, thanks for taking my questions.

嘿，謝謝你回答我的問題。

I wanted to start on the deposit growth you saw with the Bay Area team.

我想從您在灣區團隊看到的存款成長開始。

I mean, it was really strong in the quarter.

我的意思是，本季的表現非常強勁。

And could you just sort of walk through the traction you're getting in those markets and how you expect growth to trend in the Bay Area?

您能否簡單介紹一下您在這些市場中獲得的吸引力以及您對灣區成長趨勢的期望？

Well, we expect it to be similar or even higher than it was in Q2 rolling into Q3 and Q4.

好吧，我們預計它會與第二季相似甚至更高，並進入第三季和第四季。

We've added a lot more talent and some pretty big producers historically big producers at their previous financial institutions.

我們增加了更多的人才和一些相當大的生產商，他們是他們以前的金融機構的歷史上的大生產商。

So we kind of like where we're going in terms of the traction that we're getting within the Bay Area, it's still, you know, in San Francisco proper, and I'm going to see throughout the Bay Area, although you could argue there's a down incentives in the South Bay.

因此，就我們在灣區獲得的吸引力而言，我們有點喜歡我們要去的地方，你知道，它仍然是在舊金山本身，我將看到整個灣區，儘管你可能會說南灣的激勵措施有所下降。

It's pretty stable, but it's still pretty much in turmoil.

它相當穩定，但仍然處於動盪之中。

And that just creates opportunities for us.

這恰恰為我們創造了機會。

The conversion that JPM Chase had in the second quarter.

摩根大通第二季的轉型。

I think it was over the Memorial Day weekend, Woody from the old FRB platform into the Chase's platform that that didn't go necessarily well from what we hear from our prospects.

我認為是在陣亡將士紀念日週末，伍迪從舊的 FRB 平台轉到大通的平台，從我們從潛在客戶那裡聽到的情況來看，這並不一定順利。

And so we think that we'll be able to continue to take advantage of that transition.

因此，我們認為我們將能夠繼續利用這一轉變。

And especially since we've hired a lot of folks are the ex-First Republic folks who have deep relationships.

特別是因為我們僱用了很多人都是前第一共和國的人，他們有著深厚的關係。

We're very excited about where we think we can take growth in that market and we're spending a lot of time down there.

我們對我們認為可以在該市場實現成長的地方感到非常興奮，並且我們在那裡花費了大量時間。

Personally, our grand opening is going to be the last week of September for our offices, which is in the downtown financial district of San Francisco.

就我個人而言，我們的辦事處將於九月的最後一周盛大開業，該辦事處位於舊金山市中心的金融區。

A lot of outreach is going on right now, and it's exciting times for us down there.

目前正在進行大量的外展活動，這對我們來說是令人興奮的時刻。

That's great to hear.

很高興聽到這個消息。

Any commentary on on the loan growth trends you're seeing in those markets?

對您在這些市場看到的貸款成長趨勢有什麼評論嗎？

Let's see.

讓我們來看看。

We've had, you know, in terms of the teams that we brought in total loan commitments of what was that, Sarah?

你知道，就我們帶來的總貸款承諾的團隊而言，那是什麼，莎拉？

$85

85 美元

That was $85 million total uncommitted commitments.

未承諾承諾總額為 8500 萬美元。

Now that's not all outstanding.

現在這還不是全部。

But that's what we're seeing.

但這就是我們所看到的。

We do expect that for that operation to be a net contributor to liquidity of the overall entity and with our pipelines in terms of our composite pipelines down, there are very strong and our loan type that pipeline down there is very strong.

我們確實預計該業務將成為整個實體流動性的淨貢獻者，並且隨著我們的綜合管道下降，我們的貸款類型非常強勁，而且我們的貸款類型也非常強勁。

So we're excited about the good work that our new team members are putting in down there, and it's just a great group of new clients on that we're bringing on.

因此，我們對我們的新團隊成員在那裡所做的出色工作感到興奮，我們帶來了一群很棒的新客戶。

And it's and it's awfully exciting to see that market traction down there, our leader down there.

看到市場的吸引力，我們的領導者，真是令人興奮。

DJ Kurtze, is doing a great job and done.

DJ Kurtze 做得很好並且完成了。

We appreciate what the whole team is doing down there.

我們感謝整個團隊在那裡所做的事情。

Yeah.

是的。

That's great to hear maybe shifting over to the margin.

很高興聽到可能會轉移到邊緣。

It took a pretty sizable step-up in the second quarter.

第二季度取得了相當大的進步。

What's the outlook for the third quarter?

第三季的前景如何？

Just trying to get a sense of what the pull through could be in the third quarter.

只是想了解第三季的情況。

If we see another step up in the third quarter, just what the expectation are?

如果我們在第三季看到進一步的進步，我們的預期是什麼？

I think it's going to kind of moderate a little bit.

我認為情況會有所緩和。

So we're going to we're thinking 3.40 to 3. 45 as we -- for the third quarter, hopefully we'll be able to do better than that.

因此，我們將在第三季考慮 3.40 到 3.45，希望我們能夠做得更好。

But that's what our sense of it is right now, and we'll just have to see how that goes on.

但這就是我們現在的感覺，我們只需要看看事情會如何發展。

In terms of, you know, our margin is impacted by a greater reliance or a greater outstandings of wholesale deposits because you're fundamentally getting those deposits right on the marginal cost, which is right now about five and a quarter.

就您所知，我們的利潤率受到更大的依賴或更大的批發存款未償付額的影響，因為從根本上來說，您是根據邊際成本獲得這些存款的，目前邊際成本約為五又四分之一。

So the extent that we do more of that will have an impact on our margin, but we hope that our core deposit generation will will will accelerate in the third quarter.

因此，我們採取更多措施將對我們的利潤率產生影響，但我們希望我們的核心存款產生將在第三季加速。

But that's our sense of it right now, Woody is 3.40 to 3.45.

但這就是我們現在的感覺，伍迪是 3.40 到 3.45。

Alright.

好吧。

Thanks for taking my questions.

感謝您回答我的問題。

Good luck with the grand opening.

祝開業順利。

Thank you.

謝謝。

Thank you.

謝謝。

Again, once again, if you would like to ask a question,

再說一遍，如果你想問問題，

(Operator Instructions)

（操作員說明）

And ladies and gentlemen, at this time and showing no additional questions, I'd like to turn the floor back over to management for any closing remarks.

女士們、先生們，此時此刻，我想將發言權交還給管理階層，讓他們發表結束語。

Great.

偉大的。

Thank you.

謝謝。

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.

隨著我們執行策略性舉措，五星級銀行正走在持續成長的道路上，其中包括發展我們的垂直產業和地理，同時吸引和留住人才。

Our people, technology, operating efficiencies, conservative underwriting practices and expense management have also contributed to the successes we share with our employees and shareholders.

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。

These successes include numerous ratings and awards.

這些成功包括無數的收視率和獎項。

In the first half of 2024, we were recognized with the 2024 Greater Sacramento Economic Council Sustainability Award, and 2023 Raymond James Community Cup bankers Cup.

2024 年上半年，我們榮獲 2024 年大薩克拉門托經濟委員會永續發展獎和 2023 年雷蒙德詹姆斯社區盃銀行家盃。

In addition And additionally, we are listed among S&P Global Markets intelligence 2023, top 20 best performing community banks in the nation.

此外，我們也被列入《2023 年標準普爾全球市場情報》全美表現最佳的 20 家社區銀行之列。

Our company leadership was also recognized in the first half of 2024 with Sacramento Business Journal Women Who Mean Business Award, a Sacramento Business Journal C-suite award, a National Association of Women Business Owners Outstanding Women Leadership Executive Board and Independent Community Bankers of America 40 Under 40, Emerging Community Bank Leaders Award.

2024 年上半年，我們公司的領導力還獲得了《薩克拉門托商業雜誌》女性商業獎、《薩克拉門托商業雜誌》最高管理層獎、全國女企業主協會傑出女性領導力執行委員會獎和美國獨立社區銀行家獎40 的認可40 歲以下新興社區銀行領袖獎。

Five Star Bank continues continues to be a driving force of economic development, a trusted resource for our customers, and a committed advocate for our communities.

五星級銀行繼續成為經濟發展的驅動力、客戶值得信賴的資源以及社區的堅定倡導者。

We look forward to speaking with you again in October to discuss earnings for the third quarter of 2024.

我們期待 10 月再次與您交談，討論 2024 年第三季的收益。

Have a great day and thank you for listening.

祝您有美好的一天，感謝您的聆聽。

Ladies and gentlemen, that does conclude today's conference call and presentation.

女士們先生們，今天的電話會議和演講到此結束。

We thank you for joining.

我們感謝您的加入。

You may now disconnect your lines.

現在您可以斷開線路。