Fulton Financial Corp (FULT) 2022 Q2 法說會逐字稿

Good morning, and thanks for joining us for Fulton Financial's conference call and webcast to discuss our earnings for the second quarter of 2022. Your host for today's conference call is Phil Wenger, Chairman and Chief Executive Officer. Joining Phil are Curt Myers, President and Chief Operating Officer; and Mark McCollom, Chief Financial Officer.

早上好，感謝您參加 Fulton Financial 的電話會議和網絡直播，討論我們 2022 年第二季度的收益。今天電話會議的主持人是董事長兼首席執行官 Phil Wenger。加入 Phil 的還有總裁兼首席運營官 Curt Myers；和首席財務官馬克·麥科洛姆。

Our comments today will refer to the financial information and related slide presentation included with our earnings announcement, which we released yesterday afternoon. These documents can be found on our website at fult.com by clicking on Investor Relations and then on News. The slides can also be found on the Presentations page under Investor Relations on our website.

我們今天的評論將參考我們昨天下午發布的收益公告中包含的財務信息和相關幻燈片演示。這些文件可以在我們的網站 fult.com 上找到，點擊投資者關係，然後點擊新聞。這些幻燈片也可以在我們網站上投資者關係下的演示頁面上找到。

On this call, representatives of Fulton may make forward-looking statements with respect to Fulton's financial condition, results of operation and business. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, and actual results could differ materially.

在這次電話會議上，富爾頓的代表可能會就富爾頓的財務狀況、經營業績和業務做出前瞻性陳述。這些陳述不是對未來業績的保證，並受風險、不確定性和其他因素的影響，實際結果可能存在重大差異。

Please refer to the safe harbor statement on forward-looking statements in our earnings release and on Slide 2 of today's presentation for additional information regarding these risks, uncertainties and other factors. Fulton undertakes no obligation, other than as required by law, to update or revise any forward-looking statements. In discussing Fulton's performance, relative -- representatives of Fulton may refer to certain non-GAAP financial measures.

有關這些風險、不確定性和其他因素的更多信息，請參閱我們收益發布中關於前瞻性陳述的安全港聲明以及今天演示文稿的幻燈片 2。除法律要求外，富爾頓不承擔更新或修改任何前瞻性陳述的義務。在討論富爾頓的業績時，富爾頓的相關代表可能會參考某些非公認會計準則財務指標。

Please refer to the supplemental financial information included with Fulton's earnings announcement released yesterday as well as Slides 10 through 12 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures.

請參閱富爾頓昨天發布的收益公告以及今天演示文稿的幻燈片 10 至 12 中包含的補充財務信息，以將這些非公認會計原則財務指標與最具可比性的公認會計原則指標進行對賬。

And now I'd like to turn the call over to your host, Phil Wenger.

現在我想把電話轉給你的主持人菲爾·溫格。

Thanks, Matt. Good morning, everyone. As usual, I'll share a brief overview of the quarter's highlights. Then Curt will discuss our business performance and Mark will share the details of our financial performance. And then we'll be happy to take your questions. The second quarter of 2022 was a good one for Fulton, and we were pleased with our performance. Our earnings per share of $0.42 was an increase of $0.04 over the previous quarter. Several factors helped drive performance. We saw a very strong loan growth.

謝謝，馬特。大家，早安。像往常一樣，我將簡要概述本季度的亮點。然後 Curt 將討論我們的業務績效，Mark 將分享我們財務績效的詳細信息。然後我們很樂意回答您的問題。 2022 年第二季度對富爾頓來說是一個不錯的季度，我們對自己的表現感到滿意。我們的每股收益為 0.42 美元，比上一季度增加了 0.04 美元。有幾個因素有助於推動績效。我們看到了非常強勁的貸款增長。

Our net interest income benefited from rising interest rates. Overall, fee income was solid and asset quality remained relatively stable despite a more cautious outlook. In April, Fulton released the company's first corporate social responsibility report. This comprehensive report illustrates how our purpose-driven company provides an exceptional banking experience for our customers while strengthening the communities we serve. In June, Fulton Bank announced upcoming changes to our overdraft program and fee schedule.

我們的淨利息收入受益於利率上升。總體而言，儘管前景較為謹慎，但手續費收入穩健，資產質量保持相對穩定。 4月，富爾頓發布了公司首份企業社會責任報告。這份綜合報告說明了我們以目標為導向的公司如何為我們的客戶提供卓越的銀行體驗，同時加強我們所服務的社區。 6 月，富爾頓銀行宣布即將對我們的透支計劃和費用表進行更改。

In the fourth quarter of 2022, Fulton Bank will eliminate nonsufficient funds fees and extended overdraft fees for consumer customers. And as of July 1, I am pleased to report that we completed the acquisition of Prudential Bancorp, Inc. just under -- in just under 4 months after our announcement. Later this year, we expect the bank conversion to occur and Prudential Bank and its customers will be merged into Fulton Bank. Many of our team members have been working to ensure that the transition to Fulton Bank is a smooth one for Prudential Bank's customers and employees.

2022年第四季度，富爾頓銀行將為消費者客戶取消資金不足費用和延期透支費用。截至 7 月 1 日，我很高興地報告，我們在宣布後不到 4 個月內就完成了對 Prudential Bancorp, Inc. 的收購。今年晚些時候，我們預計將發生銀行轉換，保誠銀行及其客戶將合併到富爾頓銀行。我們的許多團隊成員一直在努力確保 Prudential Bank 的客戶和員工順利過渡到 Fulton Bank。

As part of this acquisition in early July, Fulton made a $2 million contribution to the Fulton Forward Foundation, and this contribution will provide impact gifts to nonprofit organizations in Philadelphia that are focused on advancing economic empowerment, particularly in underserved communities. With the Prudential Bancorp acquisition completed, we have doubled our loan portfolio and expanded our deposit base fourfold in the Philadelphia market. Looking ahead, with our $75 million share repurchase authorization in place and the closing of the Prudential Bancorp acquisition now complete, we can consider repurchasing shares later in the year if it makes financial sense to do so.

作為 7 月初此次收購的一部分，富爾頓向富爾頓前進基金會捐款 200 萬美元，這筆捐款將為費城專注於促進經濟賦權的非營利組織提供影響力禮物，特別是在服務欠缺的社區。隨著對 Prudential Bancorp 的收購完成，我們的貸款組合翻了一番，並將我們在費城市場的存款基礎擴大了四倍。展望未來，隨著我們 7500 萬美元的股票回購授權已經到位，並且對 Prudential Bancorp 的收購現已完成，如果在財務上有意義的話，我們可以考慮在今年晚些時候回購股票。

And now Curt will take a closer look at the details of our business results. Curt?

現在，Curt 將仔細研究我們業務成果的細節。生硬？

Thanks, Phil, and good morning. We are very pleased with our performance for the second quarter. So let me share some additional detail on several key areas. Loan growth was very strong for the quarter with solid originations in both our commercial and consumer businesses, and we also experienced slower prepayments in residential mortgage lending. Total loan growth, excluding PPP loans, was approximately $537 million or about 11.6% annualized and was spread throughout most loan categories and products.

謝謝，菲爾，早上好。我們對第二季度的表現非常滿意。因此，讓我在幾個關鍵領域分享一些額外的細節。本季度的貸款增長非常強勁，來自我們的商業和消費業務，而且我們還經歷了住宅抵押貸款的預付放緩。不包括 PPP 貸款在內的總貸款增長約為 5.37 億美元，年化增長率約為 11.6%，並且分佈在大多數貸款類別和產品中。

As a reminder, all of the loan and deposit growth numbers I will be referencing are annualized numbers on a linked quarter basis. Starting with commercial lending. We had another solid quarter where commercial loans grew $225 million or 7.2%. The C&I loan growth accelerated, increasing $106 million or 10.6% versus 8.1% in the first quarter and 5.5% compared to the prior year period. Increased originations largely drove this growth. Commercial line utilization ended the quarter at 22%, flat with the prior quarter and represents additional growth potential in future periods.

提醒一下，我將參考的所有貸款和存款增長數字都是相關季度的年化數字。從商業貸款開始。我們還有一個穩健的季度，商業貸款增長了 2.25 億美元或 7.2%。工商業貸款增長加速，增加了 1.06 億美元或 10.6%，而第一季度和去年同期相比分別增長了 8.1% 和 5.5%。增加的起源在很大程度上推動了這種增長。商業線利用率在本季度末為 22%，與上一季度持平，代表了未來時期的額外增長潛力。

As a reminder, commercial line utilization as of the first quarter of 2020 was 32%, representing a $530 million opportunity should line utilization revert to pre-pandemic levels at some point in the future. During the quarter, commercial mortgages rebounded from a flat quarter in the first quarter, growing $128 million or 7%, driven by strong originations and migration from construction to permanent loans. Commercial mortgage growth did impact commercial construction balances, which declined $79 million during the quarter. Even with strong originations during the quarter, the commercial pipeline grew nicely and is now at or above recent levels.

提醒一下，截至 2020 年第一季度，商業線路利用率為 32%，如果線路利用率在未來某個時候恢復到大流行前的水平，則意味著 5.3 億美元的機會。在本季度，商業抵押貸款從第一季度持平的季度反彈，增長了 1.28 億美元或 7%，這主要得益於強勁的貸款來源和從建築業向永久性貸款的遷移。商業抵押貸款增長確實影響了商業建築餘額，本季度下降了 7900 萬美元。即使在本季度的強勁來源，商業管道增長良好，現在處於或高於近期水平。

Turning to our consumer and small business lending. Loan balances grew $281 million or 18.9%. Residential mortgage growth for the quarter was $257 million or 26% linked quarter. With the rise in interest rates, we saw a shift from fixed rate salable mortgages to on-balance sheet adjustable rate originations. In addition, we experienced a slowing in residential mortgage loan prepayments. As I mentioned in the past several quarters, our fintech partnership for student loan refinance business continues to progress nicely, with $28 million of originations in the quarter, this portfolio now exceeds $50 million in balances and gives us access to an attractive customer segment.

轉向我們的消費者和小企業貸款。貸款餘額增長 2.81 億美元或 18.9%。本季度的住宅抵押貸款增長為 2.57 億美元或 26% 的關聯季度。隨著利率的上升，我們看到了從固定利率可銷售抵押貸款向資產負債表上可調整利率的轉變。此外，我們的住宅抵押貸款預付款有所放緩。正如我在過去幾個季度中提到的，我們在學生貸款再融資業務方面的金融科技合作夥伴關係繼續取得良好進展，本季度發起了 2800 萬美元，該投資組合現在餘額超過 5000 萬美元，使我們能夠接觸到有吸引力的客戶群。

Lastly, our consumer indirect business grew $22 million or 23% from both adding new dealer customers and increased consumer spending. Overall, we are very pleased with the depth and breadth of our loan growth this quarter. Turning to deposits. On an ending balance basis, we saw a decline in total deposits for the quarter. This decline was driven by decreases in wholesale, time and other interest-bearing deposit products. Noninterest-bearing deposits, which represent 1/3 of our total deposit base, remained flat linked quarter.

最後，我們的消費者間接業務增長了 2200 萬美元或 23%，這得益於增加新經銷商客戶和增加消費者支出。總體而言，我們對本季度貸款增長的深度和廣度感到非常滿意。轉向存款。在期末餘額的基礎上，我們看到本季度的總存款下降。這一下降是由批發、定期和其他計息存款產品的減少推動的。占我們總存款基礎 1/3 的無息存款保持與季度持平。

These broad-based declines were, in some cases, seasonal, but were also driven in part by our disciplined pricing strategy. Recently, we have started to selectively raise deposit rates to both retain and grow our deposit customers. For the quarter, total deposit balances declined $397 million or 7.4%.

在某些情況下，這些基礎廣泛的下降是季節性的，但部分原因是我們嚴格的定價策略。最近，我們開始有選擇地提高存款利率，以保留和發展我們的存款客戶。本季度，存款餘額總額下降 3.97 億美元或 7.4%。

Moving to our fee income businesses. We were pleased with our overall performance. The diversification in our business lines has served us well with certain business lines growing, offsetting the near-term challenges we face in businesses that are more sensitive to interest rates and market volatility.

轉向我們的收費收入業務。我們對我們的整體表現感到滿意。我們業務線的多元化為我們提供了良好的服務，某些業務線不斷增長，抵消了我們在對利率和市場波動更敏感的業務中面臨的近期挑戰。

In our commercial line of business, total fees increased $4.4 million, up 27% versus the prior period, driven by sizable increases in capital markets, merchant activity fees and our core cash management business. Capital markets fees, predominantly commercial loan interest rate swaps, were up $2.2 million versus the prior quarter, driven by both volume and size of transaction. As I noted in prior periods, capital markets fees are transactional in nature and are driven by the needs of our commercial customer base.

在我們的商業業務線中，總費用增加了 440 萬美元，比上一期增長了 27%，這得益於資本市場、商戶活動費用和我們的核心現金管理業務的大幅增長。受交易量和交易規模的推動，資本市場費用（主要是商業貸款利率掉期）與上一季度相比增加了 220 萬美元。正如我在前幾期所指出的，資本市場費用本質上是交易性的，是由我們的商業客戶群的需求驅動的。

Merchant fees were up $1.1 million or 23% linked quarter driven by increases in gross sales volume. Cash management grew $634,000 or 11.7% linked quarter as we are starting to see increased activity and the impact of annual fee increases. In addition, we have managed earnings credit rates very effectively. Offsetting growth in the commercial business, wealth management fees declined $1.2 million or 5.9% linked quarter. Continued strong sales efforts, client retention and our recurring fee revenue model, helped to buffer the impact of declines in the financial markets. At June 30, the market value of assets under management and administration declined to $12.6 billion or 8.7%, down less than the overall market.

受總銷售額增長的推動，商戶費用上漲 110 萬美元或 23%。由於我們開始看到活動增加和年費增加的影響，現金管理增長了 634,000 美元或 11.7%。此外，我們非常有效地管理收益信用率。抵消商業業務增長的影響，財富管理費用下降了 120 萬美元或 5.9% 的聯繫季度。持續強勁的銷售努力、客戶保留和我們的經常性收費收入模式有助於緩沖金融市場下滑的影響。 6月30日，管理資產市值跌至126億美元，跌幅8.7%，跌幅低於大盤。

Turning to consumer and small business banking. Most consumer fee categories grew nicely, offsetting declines in mortgage banking. Consumer fees from card and transaction accounts were up $717,000 or 4.6% linked quarter, largely due to increased customer activity. Offsetting consumer fees, mortgage banking revenue declined to $808,000, driven by a $480,000 decline in gain on sale income. While gain on sale spreads widened, we saw lower loan sales due to the swing from fixed rate to industrial rate products, which we chose to put on the balance sheet.

轉向消費者和小企業銀行業務。大多數消費費用類別增長良好，抵消了抵押銀行業務的下降。信用卡和交易賬戶的消費費用上漲了 717,000 美元或 4.6%，主要是由於客戶活動增加。由於銷售收入減少 480,000 美元，抵押貸款銀行業務收入減少了 480,000 美元，抵消了消費者費用。雖然銷售利差擴大，但由於從固定利率產品轉向工業利率產品（我們選擇將其記入資產負債表），我們看到貸款銷售量下降。

Moving to credit. Our performance this quarter was stable with net recoveries and only a modest provision for credit losses. With that being said, we are seeing modest increases in nonperforming loans and delinquency. During the quarter, we had $3.7 million or 8 basis points of annualized net recoveries, compared to $1.1 million or 2 basis points of annualized net recoveries in the first quarter. Our second quarter provision for credit losses was $1.5 million versus a negative $7 million provision for the first quarter.

走向信貸。我們本季度的表現穩定，淨回收率和信貸損失準備金不多。話雖如此，我們看到不良貸款和拖欠率略有增加。本季度，我們的年化淨回收率為 370 萬美元或 8 個基點，而第一季度的年化淨回收率為 110 萬美元或 2 個基點。我們第二季度的信貸損失準備金為 150 萬美元，而第一季度為負 700 萬美元。

This is the first quarter in which we recorded an increase in our allowance for credit losses out of the last 5 quarters and was primarily driven by strong loan growth during the quarter. At June 30, the allowance for credit losses, excluding PPP balances, is 1.32% of loans. As always, our allowance for credit loss trends could change in future periods based on new loan origination volumes, loan mix, net charge-off activity and longer-term economic projections. Overall, our credit performance remained stable. However, our credit outlook has turned more cautious due to macroeconomic environment.

這是我們在過去 5 個季度中記錄信用損失準備金增加的第一季度，主要是由於該季度強勁的貸款增長。截至 6 月 30 日，信貸損失準備金（不包括 PPP 餘額）為貸款的 1.32%。與往常一樣，我們的信用損失準備金趨勢可能會在未來期間根據新的貸款發放量、貸款組合、淨沖銷活動和長期經濟預測而發生變化。總體而言，我們的信用表現保持穩定。然而，由於宏觀經濟環境，我們的信貸前景變得更加謹慎。

Now I'll turn the call over to Mark to discuss our financial results and outlook in a little more detail.

現在我將把電話轉給馬克，更詳細地討論我們的財務業績和前景。

Thank you, Curt, and good morning to everyone on the call. Unless I note otherwise, the quarterly comparisons I will discuss are with the first quarter of 2022. Starting on Slide 3. Earnings per diluted share this quarter were $0.42 on net income available to common shareholders of $67.4 million. This is up from $0.38 in the first quarter of 2022. Our second quarter performance included a sharp increase in net interest income and a modest increase in fee income for the quarter, offset by increases in the provision for credit losses as well as operating expenses, which I'll cover in more detail later in my comments.

謝謝你，Curt，大家早上好。除非我另有說明，否則我將討論的季度比較是與 2022 年第一季度的比較。從幻燈片 3 開始。本季度每股攤薄收益為 0.42 美元，普通股股東可獲得的淨收入為 6740 萬美元。這高於 2022 年第一季度的 0.38 美元。我們第二季度的業績包括淨利息收入的大幅增長和本季度費用收入的適度增長，但被信貸損失準備金和運營費用的增加所抵消，稍後我將在我的評論中更詳細地介紹。

Moving to Slide 4. Our net interest income was $179 million, an $18 million increase linked quarter. This increase was a function of both very strong loan growth as well as the impact of rising interest rates during the quarter. With respect to our PPP program, during the second quarter, we saw these loans decrease by another $92 million, ending the quarter at only $72 million outstanding. Because the remaining impact to our financials is no longer material, this will be the last quarter in which we discuss this portfolio in our prepared remarks, but we will continue to show the portfolio separately in our financial tables for the balance of the year.

轉到幻燈片 4。我們的淨利息收入為 1.79 億美元，比上一季度增加了 1800 萬美元。這一增長是由於貸款增長非常強勁以及本季度利率上升的影響。關於我們的 PPP 計劃，在第二季度，我們看到這些貸款又減少了 9200 萬美元，到本季度末只有 7200 萬美元的未償還貸款。由於對我們財務狀況的剩餘影響不再重要，這將是我們在準備好的評論中討論該投資組合的最後一個季度，但我們將繼續在今年餘下的財務表中單獨顯示該投資組合。

With respect to the investment portfolio, balances declined modestly during the period, decreasing $171 million to end the quarter at $4.1 billion. Given our strong loan growth during the quarter, we opted to pare back on investment securities growth. Turning to deposits. Total deposits declined approximately $397 million on an ending balance basis. Most of this decline was in interest-bearing demand products. On an average balance basis, total deposits increased $44 million for the quarter to $21.5 billion. Our cost of deposits for the quarter remained at 11 basis points, consistent with the prior quarter.

在投資組合方面，餘額在此期間略有下降，減少了 1.71 億美元，至本季度末為 41 億美元。鑑於本季度我們強勁的貸款增長，我們選擇削減投資證券增長。轉向存款。在期末餘額的基礎上，總存款減少了約 3.97 億美元。這種下降主要是在計息需求產品中。在平均餘額的基礎上，本季度總存款增加了 4400 萬美元，達到 215 億美元。我們本季度的存款成本保持在 11 個基點，與上一季度一致。

We expect this to be at the bottom for deposit costs as we are starting to selectively increase interest rates for certain products and customer segments. Our ending loan-to-deposit ratio increased from 85.8% in the first quarter to 89.5% currently. Our net interest margin for the second quarter was 3.04% versus 2.78% in the first quarter. The 26 basis points of linked quarter increase resulted primarily from an improvement in the mix of interest-earning assets, an asset-sensitive loan portfolio and stable deposit costs. Going forward, I'd expect our net interest margin to expand with additional rate increases, but we will also be adjusting deposit costs during this period.

我們預計這將是存款成本的最低點，因為我們開始有選擇地提高某些產品和客戶群的利率。我們的期末貸存比率從第一季度的 85.8% 上升到目前的 89.5%。我們第二季度的淨息差為 3.04%，而第一季度為 2.78%。相關季度增長 26 個基點主要是由於生息資產組合、資產敏感貸款組合和穩定的存款成本的改善。展望未來，我預計我們的淨息差會隨著加息而擴大，但我們也將在此期間調整存款成本。

Turning to Slide 6. Noninterest income. I'll provide some additional detail on the business results Curt discussed. Mortgage banking revenues declined and were driven by a decline in mortgage loan sales, offset in part by an increase in gain on sales spreads, which rose to 190 basis points this quarter versus 161 basis points during the first quarter. Our pipeline in this business has declined to pre-COVID levels and only 6% of our mortgage originations this past quarter were for refinancings.

轉到幻燈片 6。非利息收入。我將提供一些關於 Curt 所討論的業務成果的額外細節。抵押貸款銀行業務收入下降，並受到抵押貸款銷售下降的推動，部分被銷售利差增加所抵消，本季度銷售利差上升至 190 個基點，而第一季度為 161 個基點。我們在這項業務中的管道已降至 COVID 之前的水平，上個季度我們的抵押貸款發放中只有 6% 用於再融資。

Prepayments have also slowed considerably, which has contributed to the quarterly loan growth we saw in this category. In June, we also announced some changes to our overdraft products and services. These changes will be effective in the fourth quarter of 2022. They are not expected to have a material impact to 2022 results, less than $1 million. And this reduction is reflected in the refreshed 2022 guidance provided at the end of my comments.

預付款也大幅放緩，這促成了我們在該類別中看到的季度貸款增長。 6 月，我們還宣布了對透支產品和服務的一些更改。這些變化將於 2022 年第四季度生效。預計它們不會對 2022 年的業績產生重大影響，不到 100 萬美元。這種減少反映在我評論末尾提供的更新後的 2022 年指導中。

Moving to Slide 7. Noninterest expenses, excluding merger-related charges, were approximately $149 million in the second quarter, up $3.1 million linked quarter. This increase was driven by the following factors: total salaries and benefits were up $1 million linked quarter, driven by annual merit increases in the month of April and one additional calendar day during the quarter; also contributing to the linked quarter increase in expenses were higher outside services costs due to the timing of certain technology projects in the second quarter, resulting in a $600,000 increase; and lastly, a $2.2 million increase in other expenses that was primarily due to lower real estate-related gains on sale, an increase in certain state tax assessments and an additional calendar day during the quarter.

轉到幻燈片 7。不包括與合併相關的費用在內的非利息支出在第二季度約為 1.49 億美元，比相關季度增加了 310 萬美元。這一增長是由以下因素推動的：由於 4 月份的年度績效增長和該季度增加了一個日曆日，相關季度的總工資和福利增加了 100 萬美元；由於第二季度某些技術項目的時間安排，導致相關季度費用增加的外部服務成本增加，導致費用增加 600,000 美元；最後，其他費用增加了 220 萬美元，這主要是由於與房地產相關的銷售收益減少、某些州稅收評估增加以及本季度增加了一個日曆日。

Slide 8 provides more detail on our capital ratios. As of June 30, we maintained solid cushions over the regulatory minimums and our bank and parent company liquidity remained very strong. Accumulated other comprehensive income decreased $145 million during the quarter. This impacted our tangible common equity ratio as well as tangible book value per share by 40 basis points and $1.25 per share, respectively, offset by strong net retained earnings. During the quarter, we did not repurchase any shares. And as Phil mentioned, our Board approved another $75 million share repurchase authorization expiring at the end of the year.

幻燈片 8 提供了有關我們資本比率的更多詳細信息。截至 6 月 30 日，我們在監管最低限度上保持了堅實的緩衝，我們的銀行和母公司的流動性仍然非常強勁。本季度累計其他綜合收益減少了 1.45 億美元。這對我們的有形普通股比率和每股有形賬面價值分別產生了 40 個基點和 1.25 美元的影響，但被強勁的淨留存收益所抵消。在本季度，我們沒有回購任何股票。正如菲爾所提到的，我們的董事會批准了另外 7500 萬美元的股票回購授權，該授權將於今年年底到期。

On Slide 9, we are providing updated guidance for 2022. Our guidance now assumes a total of 275 basis points of Fed funds increases occurring as follows: the 150 basis points previously announced in March, May and June; 75 basis points assumed in July; and 25 basis point increases assumed in both September and December. Our revised guidance also includes the impact of our Prudential Bancorp acquisition, which closed on July 1. Based on those assumptions, our revised guidance is as follows: we expect our net interest income to be in the range of $745 million to $760 million.

在幻燈片 9 上，我們提供了 2022 年的最新指引。我們的指引現在假設聯邦基金總共增加 275 個基點，如下所示：先前在 3 月、5 月和 6 月宣布的 150 個基點； 7 月份假設為 75 個基點； 9 月和 12 月均假設加息 25 個基點。我們的修訂指引還包括我們於 7 月 1 日完成的 Prudential Bancorp 收購的影響。基於這些假設，我們的修訂指引如下：我們預計我們的淨利息收入將在 7.45 億美元至 7.6 億美元之間。

We expect our noninterest income, excluding securities gains to be in the range of $220 million to $230 million. We expect our noninterest expenses to be in the range of $600 million to $610 million for the year. Note that this operating expense guidance excludes the impact of $1.4 million in merger-related charges through June related to the Prudential Bancorp acquisition. We expect total onetime merger-related charges of $17 million to $18 million for this acquisition or approximately another $16 million of merger expenses occurring in the second half of 2022.

我們預計我們的非利息收入（不包括證券收益）將在 2.2 億美元至 2.3 億美元之間。我們預計今年的非利息支出將在 6 億美元至 6.1 億美元之間。請注意，本運營費用指南不包括截至 6 月與 Prudential Bancorp 收購相關的 140 萬美元合併相關費用的影響。我們預計此次收購的一次性合併相關費用總額為 1700 萬美元至 1800 萬美元，或者在 2022 年下半年發生的合併費用約為 1600 萬美元。

And lastly, we expect our effective tax rate to be in the range of 18%, plus or minus, for the year. Many of you also look at pre-provision net revenue, or PPNR, as a key metric to assess the profitability of core operations. Our version of this metric is included in the financial tables of our press release. PPNR has increased 18% year-over-year and 24% linked quarter as a result of our 2021 balance sheet restructuring, earning asset growth over the past year and core margin expansion from our asset-sensitive balance sheet.

最後，我們預計今年的有效稅率將在 18% 的範圍內，上下浮動。你們中的許多人還將預配置淨收入或 PPNR 作為評估核心業務盈利能力的關鍵指標。我們的這個指標版本包含在我們新聞稿的財務表中。由於我們 2021 年的資產負債表重組、過去一年的資產增長以及我們對資產敏感的資產負債表的核心利潤率擴張，PPNR 同比增長 18%，關聯季度增長 24%。

With that, I'll now turn the call over to the operator for questions.

有了這個，我現在將把電話轉給接線員提問。

(Operator Instructions). First question comes from the line of Daniel Tamayo from Raymond James.

（操作員說明）。第一個問題來自 Raymond James 的 Daniel Tamayo。

So maybe first, just starting on the net interest income guidance, seeing if we can perhaps break away the differences between kind of what -- excess liquidity, I guess, where that is now? How much the deployment of that is embedded in the guidance relative to just kind of asset sensitivity from rate hikes? And then also on the deposit side, what you guys are assuming in terms of either betas or costs?

所以也許首先，從淨利息收入指導開始，看看我們是否可以打破那種東西之間的差異——我猜，流動性過剩，現在在哪裡？相對於加息對資產的敏感性，指引中包含多少部署？然後在存款方面，你們在 beta 或成本方面的假設是什麼？

Yes. So Danny, first on excess liquidity, I'd say our liquidity actually this quarter with holding the line on deposit cost as we did and with the strong loan growth that we had, we're really down to a comfortable level of excess liquidity. So I would say that in that guide, what you're really seeing there is just the impact of the additional interest rates we've assumed in the back half of the year. And then remind me on your second question?

是的。因此，丹尼，首先是關於流動性過剩，我想說的是，本季度我們的流動性實際上與我們一樣保持存款成本線以及我們擁有的強勁貸款增長，我們真的降到了流動性過剩的舒適水平。所以我想說，在那個指南中，你真正看到的只是我們在下半年假設的額外利率的影響。然後提醒我你的第二個問題？

Deposit betas. Yes.

存款測試版。是的。

Yes -- just.

是的——只是。

Deposit betas, yes. Thank you. Deposit betas, so obviously, year-to-date, we've had 0, if you take our interest rate assumptions and if you take that NII guide, we had said earlier that we expect -- through the cycle, we expect our overall deposit beta to be in the 30% range. But when you look just for the stub during this period where you don't -- typically, we calculate betas full 12 months out after the last rate increase. So if you look at what we expect that beta to be just for this year, we would expect it to be more in the 15% to 20% range by the end of the year. And that's offset by a loan beta that is forecasted to be in the low 40s.

存款測試版，是的。謝謝你。存款貝塔，所以很明顯，年初至今，如果你採用我們的利率假設並且如果你採用 NII 指南，我們之前說過，我們預計 - 在整個週期中，我們預計我們的整體存款 beta 在 30% 範圍內。但是，當您在此期間只尋找存根時，通常會在最後一次加息後的 12 個月內計算完整的貝塔值。因此，如果你看看我們預計今年的 beta 版本，我們預計到今年年底它會在 15% 到 20% 的範圍內更多。這被預計在 40 年代低點的貸款 beta 所抵消。

Okay. All right. Terrific. That's really helpful. And then changing gears here a little bit to the loan growth side. I'm interested in your thoughts on -- there's a lot going on with residential mortgages and mortgage banking with the increase in rates. So just your thoughts on where you're comfortable taking the residential mortgage portfolio as a percentage of the overall portfolio? And then if in your mind, once that level is reached, if it's somewhat near, that could then add to mortgage banking, given you're already kind of trending towards a level you haven't seen from a mortgage banking perspective in quite a while.

好的。好的。了不起。這真的很有幫助。然後在這裡稍微改變一下貸款增長方面。我對你的想法很感興趣——隨著利率的提高，住宅抵押貸款和抵押貸款銀行業務發生了很多變化。那麼，您對住宅抵押貸款投資組合佔整體投資組合的百分比的看法是什麼？然後，如果在您看來，一旦達到該水平，如果它有點接近，那麼這可能會增加抵押銀行業務，因為您已經趨向於從抵押銀行業務的角度來看您在相當長一段時間內沒有看到的水平儘管。

Yes. Danny, on the mix, I think we do have room to continue to grow that portfolio, and we're comfortable with the mix increasing somewhat. So short term, we don't think that'll impact what we're willing to put on the balance sheet. Really, what we saw in the second quarter was the customer demand shifting from long-term fixed rates to adjustable rate mortgage, that's really what accelerated it in the quarter. So as we look forward, we think residential mortgage growth will moderate from what we saw in the second quarter.

是的。丹尼，在混合方面，我認為我們確實有空間繼續擴大這個投資組合，我們對混合增加一點感到滿意。如此短期，我們認為這不會影響我們願意在資產負債表上投入的資金。確實，我們在第二季度看到的是客戶需求從長期固定利率轉向可調整利率抵押貸款，這確實是該季度加速增長的原因。因此，展望未來，我們認為住宅抵押貸款增長將較第二季度有所放緩。

Our next question comes from the line of Russell Gunther from D.A. Davidson.

我們的下一個問題來自 D.A. 的 Russell Gunther。戴維森。

Just a quick follow-up on the growth outlook. So if you guys -- really strong results first half of the year and building momentum into 2Q. I hear you on the expectations for resi. Can you comment though on just overall organic growth expectations for the back half of the year? And any expectations for a potential slowdown from the momentum you've shown in the first half?

只是對增長前景的快速跟進。因此，如果你們——今年上半年業績非常強勁，並在第二季度建立勢頭。我聽到你對 resi 的期望。您能否就下半年的整體有機增長預期發表評論？您對上半年表現出的勢頭有可能放緩的預期嗎？

Yes, so we did have a really strong quarter and a really strong first half. On the consumer side of the business, as rates move up, that will impact demand. So I think there is potential for consumer to slow down as rates go up. We feel good about the businesses and the backlog and activity that we have right now. But I think that's a macroeconomic environment that we're worried about as those rates go up. On the commercial side, our pipeline remains strong. We're adding to our team. We had growth in every area, geographically, of the company, and we expect consistent origination performance in the back half in commercial banking.

是的，所以我們確實有一個非常強勁的季度和非常強勁的上半年。在企業的消費者方面，隨著利率上升，這將影響需求。所以我認為隨著利率的上升，消費者有可能放緩。我們對我們現在擁有的業務以及積壓和活動感覺良好。但我認為隨著利率的上升，我們擔心的是宏觀經濟環境。在商業方面，我們的管道仍然強勁。我們正在加入我們的團隊。我們在公司的各個地區、地理上都有增長，我們預計商業銀行業務後半部分的創始業績將保持一致。

Okay. That's really helpful. And then thinking about funding the growth from a deposit perspective, you mentioned some seasonality that we saw this quarter, and I think we get some again in 3Q. And also the recent rising of rates to retain and grow balances. So would you expect to be able to continue to fund the growth outlook with deposits? And how would you expect that loan-to-deposit ratio to trend going forward?

好的。這真的很有幫助。然後從存款的角度考慮為增長提供資金，您提到了我們本季度看到的一些季節性因素，我認為我們在第三季度會再次獲得一些。以及最近提高利率以保持和增加餘額。那麼，您是否期望能夠繼續通過存款為增長前景提供資金？您如何預期貸存比率的未來趨勢？

Yes, I do, Russell. In the third quarter, as you point out, I mean we do have typical seasonality. We have $2.2 billion of initial deposits on the books as of June. Those have a blended cost of around 6 basis points. I mean our municipal book is a little bit more core than maybe how some people view municipal deposits, but there will be some tax rules coming in here in the third quarter. So -- but on top of that, I mean, again, we are going to see a full quarter impact of the rate increases that we saw in June plus the rate increase occurring in July.

是的，我願意，拉塞爾。正如你所指出的，在第三季度，我的意思是我們確實有典型的季節性。截至 6 月，我們有 22 億美元的初始存款。這些的混合成本約為 6 個基點。我的意思是，我們的市政賬簿可能比某些人對市政存款的看法更核心，但第三季度會有一些稅收規則出台。所以 - 但除此之外，我的意思是，我們將再次看到我們在 6 月份看到的加息加上 7 月份發生的加息對整個季度的影響。

So that now gives us room, and we are starting to look at the customers that we want to retain, and we have a lot of long-term depositors that we're going to be increasing rates for here in the third quarter so that we can continue to retain and grow that book and continue to fund ourselves organically.

所以現在給了我們空間，我們開始關注我們想要保留的客戶，我們有很多長期存款人，我們將在第三季度提高利率，以便我們可以繼續保留和發展這本書，並繼續有機地為自己提供資金。

All right. Great. And then just switching gears, last question here just on M&A. So with the recent deal close and integration coming shortly, just an update in terms of your appetite for M&A going forward? And whether any macro concerns have diminished that at all in the near term?

好的。偉大的。然後只是換檔，最後一個問題是關於併購的。因此，隨著最近的交易完成和整合即將到來，您對未來併購的興趣是否有更新？短期內是否有任何宏觀擔憂完全減弱了這一點？

So we would still be interested in strategic acquisitions within our footprint. I think things have slowed down considerably, but we would be interested.

因此，我們仍然會對我們足跡範圍內的戰略收購感興趣。我認為事情已經大大放緩，但我們會感興趣。

Our next question comes from the line of Frank Schiraldi from Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Frank Schiraldi。

Actually Justin Crowley on for Frank this morning. Just to follow up again, sort of on the growth discussion. On the hiring side, I think you mentioned last quarter about adding some teams in D.C. as well as Southeast PA. I was wondering if you could talk about sort of the traction you're seeing there and then some of the more hiring you're doing? And how that factors into the outlook going into the back half of the year?

實際上，賈斯汀克勞利今天早上為弗蘭克效力。只是再次跟進，有點關於增長的討論。在招聘方面，我想你上個季度提到了在華盛頓特區和賓夕法尼亞州東南部增加一些團隊。我想知道你是否可以談談你在那裡看到的那種牽引力，然後是你正在做的更多招聘？以及這對下半年的前景有何影響？

Yes. We are always recruiting and want to hire and pull teams into the organization as much as we can. In the quarter, we added the Southeast PA and we actually added a team in Northern Virginia. So those are the teams that we added, but we added, then, commercial bankers throughout the footprint as well. I think linked quarter, we were up 11 individuals. So that is a constant. We're very focused on organic growth, and that is a critical way to do it in commercial banking. So we are always recruiting and looking to (inaudible).

是的。我們一直在招聘，並希望盡可能多地僱傭和拉動團隊進入組織。在本季度，我們添加了東南 PA，實際上我們在北弗吉尼亞州添加了一個團隊。所以這些是我們添加的團隊，但我們也添加了整個足蹟的商業銀行家。我認為關聯季度，我們增加了 11 個人。所以這是一個常數。我們非常關注有機增長，這是商業銀行實現這一目標的關鍵方式。所以我們一直在招募和尋找（聽不清）。

Okay. Great. And then just on line utilization rates. You talked about those staying flat. Is there anything you're seeing -- you talked about the opportunity, should that sort of reach where you guys run historically? Is there anything you're seeing or hearing that would bring you to expect that to start to pick up as we head into the third quarter?

好的。偉大的。然後只是在線利用率。你談到了那些保持不變的人。有什麼你看到的——你談到了機會，這種機會是否應該達到你們歷史上的水平？有什麼你看到或聽到的讓你期待隨著我們進入第三季度開始回升的事情嗎？

We monitor it. It flattened out. We got a little bit of growth first quarter based on line utilization and then linked quarter here, it was relatively flat. So we do think that will increase over time as liquidity comes out of the system as customers are going to use their liquidity first. So we're going to see that natural pool between deposit balances and line utilization. So we're navigating that. But we do expect a slow and steady increase in line utilization.

我們對其進行監控。它變平了。根據線路利用率，我們第一季度有一點增長，然後在這裡鏈接季度，它相對平穩。因此，我們確實認為隨著流動性從系統中流出，隨著客戶將首先使用他們的流動性，這種情況會隨著時間的推移而增加。因此，我們將看到存款餘額和線路利用率之間的自然池。所以我們正在導航。但我們確實預計生產線利用率會緩慢而穩定地增長。

Okay. Great. That's helpful. And then just sort of lastly for me, just on capital and coming out of the Prudential deal close. On repurchases, can you just sort of remind us how you weigh -- sort of how active you plan to be, whether that's looking at capital levels or squaring that against what you're seeing from a loan growth perspective?

好的。偉大的。這很有幫助。然後對我來說最後一點，就在資本和保誠交易結束後。關於回購，你能不能提醒我們你是如何衡量的——你計劃的活躍程度，無論是考慮資本水平還是將其與你從貸款增長的角度所看到的情況相提並論？

Yes. So the waterfall on capital for us is always organic growth first. So we're going to make sure we maintain healthy cushions on capital to be able to fund the customer growth that we have. If we have excess capital, then we will certainly evaluate where the stock is trading and evaluate a buyback versus other forms of capital, like inorganic growth and acquisition use, whether that's for whole bank acquisitions or whether that's for some of the bolt-on wealth acquisitions that we've done over the years.

是的。所以對我們來說，資本的瀑布總是首先是有機增長。因此，我們將確保我們保持健康的資本緩衝，以便能夠為我們擁有的客戶增長提供資金。如果我們有多餘的資本，那麼我們肯定會評估股票在哪裡交易並評估回購與其他形式的資本，例如無機增長和收購使用，無論是針對整個銀行收購還是針對一些附加財富我們多年來所做的收購。

Okay. And to the swings in AOCI, does that impact, at all, sort of your thinking on buybacks? Or is that more just semantics?

好的。對於 AOCI 的波動，這會影響你對回購的想法嗎？或者這更只是語義？

Well, I think that's a great question. And I guess I would throw that out to everyone on this call to certainly weigh in on that as well. We have spoken with some of you, and we've spoken with Moody's, and we've spoken with some of the larger institutional investors. And I think the general view on that is that this is an accounting issue and not an economic issue, but we're paying very close attention to that because we want to make sure that all constituencies feel as comfortable as we do on the strength of our balance sheet.

嗯，我認為這是一個很好的問題。而且我想我會在這次電話會議上向每個人提出這一點，當然也會對此進行權衡。我們已經與你們中的一些人進行了交談，我們已經與穆迪進行了交談，我們已經與一些較大的機構投資者進行了交談。我認為對此的普遍看法是，這是一個會計問題而不是經濟問題，但我們非常關注這一點，因為我們希望確保所有選區都像我們一樣感到舒服我們的資產負債表。

Our next question comes from the line of Chris McGratty from KBW.

我們的下一個問題來自 KBW 的 Chris McGratty。

Mark, I want to start with just an NII question. Yes, we're all using, I think, a little bit different rate curves. Could you remind me the rule of thumb for each 25 on NII?

馬克，我想從一個 NII 問題開始。是的，我認為我們都在使用稍微不同的速率曲線。你能提醒我 NII 上每 25 個的經驗法則嗎？

Yes. So the rule of thumb for 20 -- and this is just obviously for '22. We'll be coming out with '23 guidance in early '23. And -- but based on our current assumptions on deposit betas, the rule of thumb is between $1 million and $1.5 million a month for each 25. So said another way, we have 25 assumed in September. If you have 50 in your model, that meeting is in early September, that will be 4 months, so that would be around $5 million additional to NII.

是的。所以 20 歲的經驗法則——這顯然是 22 歲的。我們將在 23 年初推出 23 年指導。而且 - 但根據我們目前對存款貝塔的假設，經驗法則是每 25 人每月在 100 萬美元到 150 萬美元之間。換一種說法，我們在 9 月份假設有 25 人。如果你的模型中有 50 個，那次會議是在 9 月初，那將是 4 個月，因此 NII 將增加約 500 萬美元。

Great. That's exactly what I was looking for. You referenced the service charge shift that a lot of your competitors are also doing. You also mentioned that's mostly going to take effect at the end of the year. Maybe a question for like lift off point in 4Q. Can you remind me what the total impact is? I think you said it was going to be $1 million this year, but looking to next year, just help with that service charge.

偉大的。這正是我一直在尋找的。您提到了許多競爭對手也在做的服務費轉變。你還提到這將在年底生效。也許是一個關於第四季度起飛點的問題。你能提醒我總的影響是什麼嗎？我想你說過今年將是 100 萬美元，但展望明年，只需幫助支付服務費。

Yes -- no. So we don't give '23 guidance until '23. We're giving the fourth quarter guidance, but we're also offering some new products for customers that might change some consumer behavior. So until we really know that, Chris, I mean I'm not going to go beyond the fourth quarter guide that we give, which I said is less than $1 million, and it's reflected in the $220 million to $230 million overall fee income guidance.

是——不是。所以我們直到 23 年才給出 23 年的指導。我們提供了第四季度的指導，但我們也為客戶提供了一些可能會改變一些消費者行為的新產品。所以在我們真正知道之前，克里斯，我的意思是我不會超出我們給出的第四季度指南，我說它不到 100 萬美元，這反映在 2.2 億至 2.3 億美元的總體費用收入指導中.

Okay. And then lastly, on the share count. I have it in my notes about 6 million shares from the deal, the fourth quarter -- for the [third] quarter?

好的。最後，關於份額數。我的筆記中有大約 600 萬股來自交易的股票，第四季度 - [第三] 季度？

You've got it, 6.2 million.

你明白了，620萬。

Our next question comes from the line of Casey Haire from Jefferies.

我們的下一個問題來自 Jefferies 的 Casey Haire。

This is Connelly on behalf of Casey Haire. So this is kind of touched upon, but obviously, deposits down 2% at the end of the quarter. I saw cash (inaudible) come down a little bit. So just in terms of the balance sheet, like for funding loan growth from here, will it come primarily from the securities portfolio? And do you have a level of cash that you're comfortable operating at going forward?

我是代表凱西海爾的康納利。所以這有點被觸及，但很明顯，本季度末存款下降了 2%。我看到現金（聽不清）下降了一點。因此，就資產負債表而言，比如從這里為貸款增長提供資金，它是否主要來自證券投資組合？你是否有足夠的現金來讓你在未來的運營中感到舒適？

Yes. It would come from cash flows from the investment portfolio. We do have a little bit of cash. We've historically -- and the industry for a long period of time has not had any overnight borrowings. So we have ample liquidity, certainly through our securities book for borrowings capacity at the FHLB as well. And we also have a loan-to-deposit ratio, which while it has picked up, it is still below our historic loan deposit ratio standards. And we feel very comfortable running in the mid-90s. We're still sitting below 90% today.

是的。它將來自投資組合的現金流。我們確實有一點現金。從歷史上看，該行業很長一段時間都沒有任何隔夜借款。因此，我們有充足的流動性，當然也可以通過我們在 FHLB 的借貸能力的證券簿。我們還有一個貸存比率，雖然有所回升，但仍低於我們歷史上的貸存比率標準。我們在 90 年代中期跑步時感覺很舒服。我們今天仍然低於 90%。

Our next question comes from the line of Matthew Breese from Stephens.

我們的下一個問題來自斯蒂芬斯的 Matthew Breese。

Just curious, thinking about the updated NII guide, $745 million to $760 million, it feels safe to say that the 4Q, the exit NII run rate will be north of $200 million. I'm curious if, by your projections, is that exit NII closer to $200 million or $210 million? Maybe frame for us what kind of the annualized exit rate is in that fourth quarter?

只是好奇，想想更新後的 NII 指南，從 7.45 億美元到 7.6 億美元，可以肯定地說，第四季度的 NII 退出率將超過 2 億美元。我很好奇，根據你的預測，退出 NII 是否接近 2 億美元或 2.1 億美元？也許對我們來說，第四季度的年化退出率是多少？

Yes. So we just give annual guides, but I would tell you that your guess of between $200 million and $210 million is pretty well spot on. So I'll leave it there.

是的。所以我們只是提供年度指南，但我會告訴你，你對 2 億到 2.1 億美元的猜測非常準確。所以我會把它留在那裡。

Okay. And Mark, maybe just provide for us what the incremental loan yield is today? What the blended rate on the portfolio, the pipeline is? And are there any areas where you're starting to see some spread compression. Just curious where you're seeing the most competition?

好的。馬克，也許只是為我們提供今天的增量貸款收益率是多少？投資組合、管道的混合率是多少？有沒有你開始看到一些傳播壓縮的地方。只是好奇你在哪裡看到了最激烈的競爭？

Yes. So I'll take the first part of the question, and I'll turn it over to Curt. So for loan yields, we were 3.56% for the second quarter. To give a sense, though, kind of where we are coming out of the quarter, we were 3.70% for the month of June. And then that really -- because our deposit costs stayed flat that really drove the margin expansion where our margin for the quarter was 3.04%, our margin for the month of June was 3.19%. Now I'll turn it to Curt who is going to -- the second half of your question.

是的。因此，我將回答問題的第一部分，然後將其交給 Curt。因此，對於貸款收益率，我們第二季度為 3.56%。不過，從某種意義上說，我們在本季度的情況是，6 月份的增長率為 3.70%。然後真的 - 因為我們的存款成本保持不變，這確實推動了利潤率擴張，我們本季度的利潤率為 3.04%，我們 6 月份的利潤率為 3.19%。現在我將把它交給Curt，他將回答你問題的後半部分。

Yes. Just to add some color on the origination. I mean, we've remained very disciplined in our pricing, and we grew most loan categories for the quarter. So it remains a competitive market. But we're not giving on credit terms, and we're not going below what we're comfortable with on credit spread.

是的。只是為了在起源上添加一些顏色。我的意思是，我們在定價方面一直非常自律，並且我們在本季度增加了大多數貸款類別。所以它仍然是一個競爭激烈的市場。但我們不會放棄信用條款，也不會低於我們對信用利差感到滿意的水平。

Okay. And you mentioned that you were offering selectively promotional deposit rates, curious what categories and what rates you're offering? If you could provide the June cost of funds, too, that would be helpful.

好的。您提到您提供選擇性促銷存款利率，好奇您提供哪些類別和利率？如果您也可以提供 6 月份的資金成本，那將很有幫助。

The June cost of funds?

6月份的資金成本？

Yes, the cost of deposits, sorry.

是的，存款成本，對不起。

Yes, was 11 basis points as well. So that stayed constant. And in terms of things that we're offering today, I mean, we're looking at individual pockets of customers and categories. One specific thing that we're launching right now is a 3-year consumer CD at 2%. So we are going out with that to get a little bit ahead of where -- if the 75 basis points occurs in July, we'll be borrowing overnight north of 2% pretty soon. So that's one example of things that we're doing.

是的，也是 11 個基點。所以保持不變。就我們今天提供的東西而言，我的意思是，我們正在關注客戶和類別的個人口袋。我們現在推出的一項具體內容是 3 年期消費 CD，價格為 2%。所以我們打算提前一點——如果 75 個基點發生在 7 月，我們很快就會在 2% 以上的一夜之間借款。這就是我們正在做的事情的一個例子。

Okay. And then my last one, just on the topic of credit. So in your prepared remarks, a little bit more cautious language on the credit front, noting some slight deterioration. I was just curious where you're seeing that slight deterioration -- yes, I'll stop there.

好的。然後我的最後一個，只是關於信用的話題。所以在你準備好的評論中，在信用方面稍微謹慎一些，注意到一些輕微的惡化。我只是好奇你在哪裡看到了輕微的惡化——是的，我會停在那裡。

We had a modest uptick in delinquency. So that's a leading indicator. But again, we're at historically low levels of delinquency, but that ticked up modestly. We had some increases in nonperforming as well, and that was specifically in C&I. A few C&I accounts struggling with the things that are in the macroeconomic environment, whether it be supply chain, or talent. There's a handful of accounts struggling with that. But it's really specific to those accounts, and we don't see anything on portfolio level in consumer or commercial at this point.

我們的拖欠率略有上升。所以這是一個領先指標。但同樣，我們的犯罪率處於歷史低位，但略有上升。我們的不良業績也有所增加，尤其是在 C&I 方面。一些 C&I 賬戶在宏觀經濟環境中苦苦掙扎，無論是供應鏈還是人才。有幾個帳戶正在為此苦苦掙扎。但它確實是針對這些賬戶的，目前我們在消費者或商業的投資組合層面上看不到任何東西。

Okay. Last one, just 2 portfolios that I'm paying a little bit more attention to are commercial real estate office and equipment. And I was curious if you could provide a little bit of color on those 2 and then exposures?

好的。最後一個，我比較關注的兩個投資組合是商業房地產辦公室和設備。我很好奇你是否可以在這兩個上提供一點顏色然後曝光？

Yes. Well, you're spot on focused on those. We're focused on those as well. In the equipment finance side, we really haven't seen any change or any increased risk in that portfolio at this point. On office, we are doing a lot of work on understanding office. We're specifically focused on investment real estate office. And we have about $560 million portfolio. We've done a deep dive on all of those accounts. We have a weighted average loan-to-value of roughly 41% -- or 51% and a very strong weighted average cash flow at this point. And we're looking at lease terms and where our emerging risk might occur. But at this point, even that portfolio where we may expect some pressure, we're not seeing it, and we feel good about our portfolio.

是的。好吧，你專注於那些。我們也專注於這些。在設備融資方面，我們目前確實沒有看到該投資組合有任何變化或風險增加。在辦公室，我們在理解辦公室方面做了大量工作。我們特別專注於投資房地產辦公室。我們有大約 5.6 億美元的投資組合。我們已經對所有這些帳戶進行了深入研究。我們的加權平均貸款價值比約為 41% - 或 51%，此時加權平均現金流非常強勁。我們正在研究租賃條款以及可能出現新風險的地方。但在這一點上，即使是我們可能預期會有壓力的投資組合，我們也沒有看到它，我們對我們的投資組合感覺良好。

Okay. What was the equipment balance?

好的。裝備餘額是多少？

Roughly $250 million, $260 million.

大約2.5億美元，2.6億美元。

Our next question comes from the line of Daniel Tamayo from Raymond James.

我們的下一個問題來自 Raymond James 的 Daniel Tamayo。

Just a quick follow-up here. Just on reserves. So obviously, we seem to be getting to a stable-ish point here or a bottom, but I was curious how you're thinking about the lever or the leverage, I guess, to any changes in economic forecasts or actual data in terms of unemployment, GDP and whatever else is driving those calculations for you guys? How much changes in those items could impact reserves? And how quickly that could happen with -- in the CECL area here?

這裡只是一個快速的跟進。就在儲備金上。所以很明顯，我們似乎在這里達到了一個穩定的點或底部，但我很好奇你是如何考慮槓桿或槓桿的，我猜，經濟預測或實際數據的任何變化失業率、GDP 和其他什麼因素推動了你們這些計算？這些項目有多少變化會影響儲備？在這裡的 CECL 領域，這會以多快的速度發生？

Yes, David, that's going to go beyond the time of this call. If you want to talk about all of the nuances around the CECL calculation. But it's obviously a mix of very large complex macroeconomically driven models as well as qualitative overlays where we look at things like office right now and portfolios that we think have potentially higher risk. Should the macroeconomic environment change significantly, that could have impact obviously on our levels of -- that we need to provide going forward. But macroeconomic factors tend to lag a little bit. And -- but they also tend to move a little bit more slowly than some of the stuff that's more specific to your own portfolio.

是的，大衛，這將超出本次電話會議的時間。如果您想談論圍繞 CECL 計算的所有細微差別。但這顯然是非常複雜的宏觀經濟驅動模型以及定性疊加的混合體，我們現在查看辦公室和我們認為具有潛在更高風險的投資組合。如果宏觀經濟環境發生顯著變化，這可能會對我們未來需要提供的水平產生明顯影響。但宏觀經濟因素往往有點滯後。並且 - 但它們也往往比一些更具體到您自己的投資組合的東西移動得更慢一些。

Yes. No, that's a good point. Is it fair to say -- do you think we've hit a bottom here from a reserve ratio perspective?

是的。不，這是一個很好的觀點。公平地說——你認為從準備金率的角度來看，我們已經觸底了嗎？

I think that's hard -- really hard to say. The one other thing, I guess, I would comment because you're asking about macroeconomic factors. I mean the one thing that's interesting with where we are right now in the cycle, is that normally when you start to see a downturn in credit, you're also in an environment then where rates are falling and that puts pressure on bank earnings. But here, we're in an environment where we don't know if we're at sort of a trough in terms of credit and if nonperformers are going to go up or not. But we're also in an environment where earnings -- the outlook for earnings for the near term is pretty good with respect to rates.

我認為這很難——真的很難說。另一件事，我想，我會評論，因為你問的是宏觀經濟因素。我的意思是，我們現在處於週期中的一件事很有趣，那就是通常當你開始看到信貸下滑時，你也處於利率下降的環境中，這給銀行收益帶來壓力。但在這裡，我們所處的環境不知道我們是否處於信用低谷，也不知道業績不佳者是否會上升。但我們也處於盈利環境中——近期的盈利前景相對於利率而言相當不錯。

Our next question comes from the line of David Bishop from Hovde Group.

我們的下一個問題來自 Hovde Group 的 David Bishop。

Some of my questions have been asked and answered. But I think in the preamble you might have noted a change in pricing on the commercial cash management was (inaudible), was that the driver of some of the increase on the cash management side of the house, on the fee side?

我的一些問題已經被問及並得到了回答。但我認為在序言中你可能已經註意到商業現金管理定價的變化是（聽不清），這是房子現金管理方面的一些增加的驅動因素，在費用方面？

Yes. It was a component just based on the second quarter. That's typically when we do our annual rate sheet changes for cash management services. So within this quarter, that impact was felt.

是的。它只是基於第二季度的一個組成部分。這通常是我們對現金管理服務進行年度費率表更改時。因此，在本季度內，人們感受到了這種影響。

And in your view, does that sort of bring you back up to the market? Above market? Just curious sort of where you lie relative to peers.

在您看來，這是否會讓您重返市場？高於市場？只是好奇你相對於同齡人的謊言。

Yes. I mean we are competitive with our regional and the large competitors there. So we feel that those fees even with the increases remain very competitive and allow us to continue to add customers and grow the customer base.

是的。我的意思是我們與我們的地區和那裡的大型競爭對手具有競爭力。因此，我們認為即使增加了這些費用，這些費用仍然非常具有競爭力，並使我們能夠繼續增加客戶並擴大客戶群。

I would now like to turn the conference back over to Phil Wenger, Chairman and CEO, for closing remarks.

我現在想把會議轉回給董事長兼首席執行官菲爾·溫格（Phil Wenger）做閉幕詞。

Well, thank you again, everyone, for joining us today...

好吧，再次感謝大家，今天加入我們...

This concludes today's conference...

今天的會議到此結束……

You want to be with us when we discuss third quarter results in October.

當我們在 10 月份討論第三季度業績時，您想和我們在一起。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。