Fulton Financial Corp (FULT) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Fulton Financial Second Quarter 2023 Results. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎閱讀富爾頓金融 2023 年第二季度業績。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Matt Jozwiak, Director of Investor Relations. Please go ahead.

我現在想將會議交給今天的發言人，投資者關係總監馬特·喬茲維亞克 (Matt Jozwiak)。請繼續。

Good morning, and thanks for joining us for Fulton Financial Corporation's conference call and webcast to discuss our earnings for the second quarter, which ended June 30, 2023. Your host for today's conference call is Curt Myers, Chairman and Chief Executive Officer. Joining Curt is Mark McCollom, Chief Financial Officer.

早上好，感謝您參加富爾頓金融公司的電話會議和網絡廣播，討論我們截至 2023 年 6 月 30 日的第二季度收益。今天電話會議的主持人是董事長兼首席執行官 Curt Myers。加入 Curt 的是首席財務官 Mark McCollom。

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 tab 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，方法是點擊“投資者關係”，然後點擊“新聞”。這些幻燈片也可以在我們網站投資者關係下的演示選項卡上找到。

On this call, representatives of Fulton may make forward-looking statements with respect to Fulton's financial condition, results of operations 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. 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.

在本次電話會議上，富爾頓的代表可能會就富爾頓的財務狀況、運營業績和業務發表前瞻性聲明。這些陳述不是對未來業績的保證，並受到風險、不確定性和其他因素的影響，實際結果可能存在重大差異。請參閱我們的收益報告和今天演示文稿的幻燈片 2 中有關前瞻性陳述的安全港聲明，了解有關這些風險、不確定性和其他因素的更多信息。

Fulton takes no obligation, other than as required by law, to update or revise any forward-looking statements. In discussing Fulton's performance, representatives of Fulton may refer to certain non-GAAP financial measures. Please refer to the supplemental financial information included with Fulton's earnings announcement released yesterday in Slides 16 through 20 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures.

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，富爾頓的代表可能會參考某些非公認會計準則財務指標。請參閱今天演示文稿的幻燈片 16 至 20 中富爾頓昨天發布的收益公告中包含的補充財務信息，以了解這些非 GAAP 財務指標與最具可比性的 GAAP 指標的調節情況。

Now I'd like to turn the call over to your host, Curt Myers.

現在我想把電話轉給主持人科特·邁爾斯。

Thanks, Matt, and good morning, everyone. Today, I'll provide summary comments on our company and on our financial performance. Then Mark will share more details on our financial results and step through our outlook for the remainder of 2023. After our prepared remarks, we'll be happy to take any questions you may have.

謝謝馬特，大家早上好。今天，我將提供對我們公司和財務業績的總結評論。然後，馬克將分享有關我們財務業績的更多詳細信息，並逐步闡述我們對 2023 年剩餘時間的展望。在我們準備好的發言之後，我們將很樂意回答您可能提出的任何問題。

We were pleased with our second quarter results. We continue to support our customers and generated solid loan growth. We saw credit metrics remain stable and credit losses return to historically low levels. In addition, fee income was strong across the entire company.

我們對第二季度的業績感到滿意。我們繼續支持客戶並實現穩健的貸款增長。我們看到信用指標保持穩定，信用損失恢復到歷史低位。此外，整個公司的費用收入也很強勁。

Operating earnings were $0.47 per share. Pre-provision net revenue, or PPNR, for the second quarter was approximately $106 million, an increase of 19% year-over-year. This was a result of earning asset growth and net interest margin expansion year-over-year.

每股營業收益為 0.47 美元。第二季度撥備前淨收入（PPNR）約為 1.06 億美元，同比增長 19%。這是盈利資產增長和淨息差同比擴張的結果。

During the second quarter, we saw loan growth of $374 million and deposit declines of $110 million. As a result, our loan-to-deposit ratio increased to 99%, right in the middle of our long-term target of 95% to 105%.

第二季度，貸款增長 3.74 億美元，存款下降 1.1 億美元。結果，我們的貸存比率上升至 99%，正好處於我們 95% 至 105% 的長期目標的中間。

Fee income increased $8.9 million, significantly above the first quarter levels. Commercial Banking had a record quarter, driven by strong capital markets and merchant and card processing income. Wealth Management continued to deliver strong results as the market value of assets under management and assets under administration reached $14.3 billion. Mortgage banking fees were up modestly linked quarter and consumer banking fees were solid as well.

費用收入增加 890 萬美元，顯著高於第一季度水平。在強勁的資本市場以及商戶和銀行卡處理收入的推動下，商業銀行業務季度業績創下歷史新高。財富管理繼續取得強勁業績，管理資產和管理資產的市值達到 143 億美元。抵押貸款銀行費用與季度相關的小幅上漲，消費者銀行費用也穩定。

Expenses increased during the period. However, they were in line with our expectations for the quarter. In addition, we also had other positive notable events during the quarter. We released the second edition of our corporate social responsibility report, highlighting achievements on our purpose of changing lives for the better. We raised our quarterly common dividend by 7% to $0.16 per share. We welcomed a new member of our executive team, Karthik Sridharan joined us as a newly created role of Chief Operations and Technology Officer. In this role, he will lead our efforts to further enhance our operational excellence for our customers and our team.

期間費用有所增加。然而，它們符合我們對該季度的預期。此外，本季度我們還發生了其他值得注意的積極事件。我們發布了第二版企業社會責任報告，重點展示了我們在讓生活變得更美好這一目標上所取得的成就。我們將季度普通股股息提高了 7%，達到每股 0.16 美元。我們迎來了執行團隊的新成員 Karthik Sridharan 加入我們，擔任新設立的首席運營和技術官。在此職位上，他將領導我們努力進一步提高我們為客戶和團隊提供的卓越運營能力。

We celebrated our first full year impact of the Prudential Bancorp acquisition. In looking back on the acquisition, we were pleased with our ability to get regulatory approval and close the transaction in under 4 months. We achieved the systems conversion on time and on budget. We realized our cost savings and met our onetime merger cost targets, and we are pleased to have the Prudential team on board and contributing to Fulton's success every day.

我們慶祝了收購保德信銀行 (Prudential Bancorp) 帶來的第一個全年影響。回顧此次收購，我們對能夠在不到 4 個月內獲得監管部門批准並完成交易的能力感到滿意。我們按時、按預算實現了系統轉換。我們實現了成本節約並實現了一次性合併成本目標，我們很高興保德信團隊加入並每天為富爾頓的成功做出貢獻。

Our second quarter results met our expectations, and we believe we are positioned well for continued success. We remain focused on growing core deposits, effectively managing our deposit mix, achieving the appropriate risk-adjusted return on our loan portfolio and improving our operating efficiency.

我們第二季度的業績符合我們的預期，我們相信我們已經做好了持續成功的準備。我們仍然專注於增加核心存款，有效管理我們的存款組合，實現貸款組合適當的風險調整回報並提高我們的運營效率。

During the quarter, we and the industry continue to experience the migration from noninterest-bearing balances into higher cost deposit products. What is critically important is to continue to grow households and customer accounts. During the quarter, we grew 4,000 total net new households and 8,000 total net new deposit accounts. We believe those are meaningful increases in this environment.

在本季度，我們和整個行業繼續經歷從無息餘額向成本更高的存款產品的轉變。最重要的是繼續增加家庭和客戶賬戶。本季度，我們增加了 4,000 個淨新家庭和 8,000 個淨新存款賬戶。我們相信，在這種環境下，這些都是有意義的增長。

On Slide 3, we have provided updated disclosures on our deposit base. We have approximately 742,000 deposit accounts with an average age of 11.4 years on a weighted balance basis. The average balance of these accounts is only $28,500. Our balance sheet remains strong, and our capital ratios continue to improve. Our liquidity position increased to over $8.2 billion in committed funds.

在幻燈片 3 上，我們提供了有關存款基礎的最新披露信息。我們擁有約 742,000 個存款賬戶，按加權餘額計算平均年齡為 11.4 年。這些賬戶的平均餘額僅為 28,500 美元。我們的資產負債表依然強勁，資本比率持續改善。我們的流動性頭寸承諾資金增加至超過 82 億美元。

Turning to credit. We have provided more detail on our loan portfolio and specifically on our office portfolio on Slides 4 and 5. I'd like to note our overall concentration in commercial real estate remains at approximately 180% of total capital, well below our proxy peer average.

轉向信用。我們在幻燈片4 和5 中提供了有關我們的貸款投資組合，特別是我們的辦公樓投資組合的更多詳細信息。我想指出的是，我們對商業房地產的總體集中度仍約為總資本的180%，遠低於我們的代理同行平均水平。

On Slides 4 and 5, a small component of our CRE portfolio is the discrete office-only portfolio, which includes all loans with a primary revenue stream from office rents. As a reminder, this segment is a diversified and granular portfolio, originated consistently over time, spread throughout our footprint and with only 5 individual loans in excess of $20 million.

在幻燈片 4 和 5 中，我們的 CRE 投資組合的一小部分是離散辦公室投資組合，其中包括主要收入來源來自辦公室租金的所有貸款。需要提醒的是，該細分市場是一個多元化且精細的投資組合，隨著時間的推移，其起源始終如一，遍布我們的足跡，只有 5 筆個人貸款超過 2000 萬美元。

Looking at overall credit, net charge-offs were $2 million or 4 basis points annualized. Overall credit performance remains within our expectations and NPAs, NPL and loan delinquency have all declined for the past 3 quarters. While we are encouraged by these credit trends, we remain focused on potential economic headwinds that could affect future performance and our credit outlook.

從整體信貸來看，淨沖銷額為 200 萬美元，即年化 4 個基點。總體信用表現仍在我們的預期之內，不良資產、不良貸款和貸款拖欠率在過去三個季度均有所下降。儘管我們對這些信貸趨勢感到鼓舞，但我們仍然關注可能影響未來業績和信貸前景的潛在經濟阻力。

Now I'll turn the call over to Mark to discuss our second quarter financial performance and 2023 outlook in more detail.

現在我將把電話轉給 Mark，更詳細地討論我們第二季度的財務業績和 2023 年前景。

Thanks, Curt, and good morning to all of you on the call. Unless I know it otherwise, the quarterly comparisons I will discuss are with the first quarter of 2023, and the loan and deposit growth numbers I will be referencing are annualized percentages on a linked quarter basis.

謝謝柯特，祝所有參加電話會議的人早上好。除非我另有所知，否則我將討論的季度比較是與 2023 年第一季度的比較，我將引用的貸款和存款增長數字是按相關季度計算的年化百分比。

Starting on Slide 6. As Curt noted, operating earnings per diluted share this quarter were $0.47 on operating net income available to common shareholders of $77.8 million. This compares to $0.39 of operating EPS in the first quarter of 2023.

從幻燈片 6 開始。正如 Curt 指出的，本季度稀釋後每股營業收益為 0.47 美元，普通股股東可獲得的營業淨利潤為 7,780 萬美元。相比之下，2023 年第一季度的運營每股收益為 0.39 美元。

Looking at the balance sheet. Loan growth slowed marginally in the second quarter to $374 million or 7% annualized. Commercial loans were $119 million of this increase or about 1/3 of our overall growth. Commercial real estate lending grew $100 million or 5% annualized, with most of this growth coming in owner-occupied commercial real estate. As noted earlier, our commercial real estate concentration remains low, approximately 180% of total capital.

看資產負債表。第二季度貸款增長小幅放緩至 3.74 億美元，年化增長率為 7%。其中商業貸款為 1.19 億美元，約占我們整體增長的 1/3。商業房地產貸款增長了 1 億美元，年增長率為 5%，其中大部分增長來自業主自用的商業房地產。如前所述，我們的商業地產集中度仍然較低，約佔總資本的 180%。

Consumer lending produced growth of $256 million or 15% during the quarter. Mortgage lending was the majority of our consumer loan growth as the second quarter is typically the peak of the home buying season. We continue to raise new loan rates across all products and remain focused on the risk-adjusted returns we are getting on new originations. As a result, we expect to see loan growth moderate both in residential mortgage and in the overall portfolio during the back half of 2023.

本季度消費貸款增長 2.56 億美元，即 15%。抵押貸款是我們消費貸款增長的主要部分，因為第二季度通常是購房季節的高峰期。我們繼續提高所有產品的新貸款利率，並繼續關注我們在新產品上獲得的風險調整回報。因此，我們預計 2023 年下半年住宅抵押貸款和整體投資組合的貸款增長將放緩。

Total deposits declined $110 million during the quarter. Interest-bearing deposits grew $428 million during the period or approximately 11%. This growth was offset by the pace of decline in our noninterest-bearing DDA accounts. Noninterest-bearing balances declined $538 million during the period, which is down from a $603 million decline in the first quarter. Our loan-to-deposit ratio ended the quarter at 99.2%, up from 97% at the end of the first quarter.

本季度存款總額減少了 1.1 億美元。期內計息存款增長了 4.28 億美元，增幅約為 11%。這一增長被我們的無息 DDA 賬戶的下降速度所抵消。期內無息餘額減少 5.38 億美元，低於第一季度 6.03 億美元的降幅。本季度末，我們的貸存比率為 99.2%，高於第一季度末的 97%。

As many investors are focused on where noninterest-bearing deposit levels will ultimately end up, we've included on Slide 7 a 30-plus year history of our noninterest-bearing deposit percentage. As our bank has grown and our C&I capabilities have expanded, this percentage has trended upward over time. Recently, rising rates have caused the deposit mix shift to occur and we believe we should end the year at around 23% noninterest-bearing deposits as a percentage of total deposits, down from 28% at June 30.

由於許多投資者都關注無息存款水平最終會達到什麼水平，因此我們在幻燈片 7 中包含了 30 多年的無息存款百分比歷史記錄。隨著我們銀行的發展和 C&I 能力的擴大，這一百分比隨著時間的推移呈上升趨勢。最近，利率上升導致存款結構發生變化，我們認為年底無息存款佔存款總額的比例應為 23% 左右，低於 6 月 30 日的 28%。

This estimate assumes an additional deposit shift of approximately $800 million into interest-bearing deposits during the back half of 2023. This mix shift is reflected in the refreshed NII guidance I will provide at the end of my comments.

這一估計假設 2023 年下半年將有約 8 億美元的額外存款轉移到計息存款中。這種混合轉移反映在我將在評論末尾提供的更新的 NII 指南中。

Our investment portfolio declined modestly during the quarter, closing at $3.9 billion. During the first quarter, we chose to build cash reserves from the cash flows in our investment portfolio. Going forward, we expect to revert back to our longer-term cash targets with incremental cash flows used to reduce overnight borrowings.

我們的投資組合在本季度略有下降，收於 39 億美元。在第一季度，我們選擇從投資組合的現金流中建立現金儲備。展望未來，我們預計將恢復到長期現金目標，並利用增量現金流來減少隔夜借款。

Putting together those balance sheet trends on Slide 8, our net interest income was $213 million for the quarter, a $3 million decrease from the first quarter. Our net interest margin for the second quarter and for the month of June were both 3.40% versus 3.53% in the first quarter. Loan yields expanded 31 basis points during the period, increasing to 5.52% versus 5.21% last quarter. Cycle-to-date, our loan beta has been 46%.

將幻燈片 8 上的資產負債表趨勢匯總起來，我們本季度的淨利息收入為 2.13 億美元，比第一季度減少 300 萬美元。我們第二季度和 6 月份的淨息差均為 3.40%，而第一季度為 3.53%。貸款收益率在此期間擴大了 31 個基點，從上季度的 5.21% 增至 5.52%。迄今為止，我們的貸款貝塔值為 46%。

Our total cost of deposits increased 50 basis points to 132 basis points during the quarter. Cycle-to-date, our total deposit beta is approximately 26%. Where our through-the-cycle deposit beta ultimately ends up will be very closely tied to where the noninterest-bearing percentage ends up landing. Based on our earlier estimate of around 23% by the end of the year, this will imply a deposit beta of approximately 40%. But we expect our loan beta to continue to drift up between now and the end of the year as well. So ultimately, we believe our ending loan beta will remain meaningfully higher than our ending deposit beta due to the asset-sensitive nature of our balance sheet.

本季度我們的總存款成本增加了 50 個基點，達到 132 個基點。迄今為止，我們的總存款貝塔值約為 26%。我們的整個週期存款貝塔值最終的結果將與無息百分比最終的下降密切相關。根據我們之前的估計，到今年年底約為 23%，這意味著存款貝塔係數約為 40%。但我們預計從現在到今年年底，我們的貸款貝塔值也將繼續上升。因此，最終，由於我們資產負債表的資產敏感性，我們相信我們的期末貸款貝塔值仍將明顯高於期末存款貝塔值。

Turning to credit quality on Slide 9. Our nonperforming loans declined $17 million during the quarter, which led to our NPL-to-loans ratio improving from 80 basis points at March 31 to 70 basis points at June 30. Overall loan delinquency improved to 105 basis points at June 30 versus 128 basis points last quarter. Despite these positive trends, our loan growth during the second quarter and modest changes to the economic outlook led to the increase in our allowance for credit losses. Our ACL as a percentage of loans increased slightly during the quarter from 1.35% of loans at March 31 to 1.37% at quarter end.

轉向幻燈片9 上的信貸質量。本季度我們的不良貸款減少了1700 萬美元，這導致我們的不良貸款與貸款比率從3 月31 日的80 個基點改善到6 月30 日的70 個基點。總體貸款拖欠率改善至105 6 月 30 日的基點為 128 個基點，而上季度為 128 個基點。儘管有這些積極的趨勢，我們第二季度的貸款增長和經濟前景的溫和變化導致我們的信貸損失準備金增加。本季度，我們的 ACL 佔貸款的百分比略有上升，從 3 月 31 日占貸款的 1.35% 增至季末的 1.37%。

Turning to noninterest income on Slide 10. Wealth Management revenues were $18.7 million, up from $18.1 million for the first quarter. We continue to invest in our wealth business, and it now represents almost 1/3 of our fee-based revenues. The market value of assets under management and administration increased $100 million to $14.3 billion at June 30. Commercial banking fees increased significantly to $23.1 million during the quarter. Capital markets revenue was very strong, and merchant and card revenues bounced back from seasonal declines we typically see in the first quarter. SBA gains on sale were also strong during the quarter.

轉向幻燈片 10 上的非利息收入。財富管理收入為 1,870 萬美元，高於第一季度的 1,810 萬美元。我們繼續投資財富業務，目前該業務幾乎占我們收費收入的 1/3。截至 6 月 30 日，所管理資產的市值增加了 1 億美元，達到 143 億美元。本季度商業銀行費用大幅增加至 2,310 萬美元。資本市場收入非常強勁，商戶和信用卡收入從我們通常在第一季度看到的季節性下降中反彈。本季度 SBA 的銷售收益也很強勁。

Consumer banking fees were up modestly for the quarter, with seasonal pickups in debit and credit card revenues, offset by a continuing decline in overdraft fees. Mortgage banking revenues picked up from seasonal lows in the first quarter. However, application volumes are down 14% year-over-year, and rate increases are beginning to influence applications and overall volumes.

本季度消費者銀行費用小幅上漲，借記卡和信用卡收入季節性回升，但被透支費用持續下降所抵消。抵押貸款銀行收入從第一季度的季節性低點回升。然而，申請量同比下降 14%，且費率上漲開始影響申請量和總體量。

Moving to Slide 11. Noninterest expenses were $168 million in the second quarter, an $8 million increase from the first quarter. The increase in day count accounted for about 1/4 of this increase. In addition, the following material items are noted: higher salaries and benefits costs are due to the April 1 merit increases as well as higher health care claims as we are largely self-insured and also higher data processing costs of $700,000 due to the timing of certain IT initiatives.

轉到幻燈片 11。第二季度非利息支出為 1.68 億美元，比第一季度增加 800 萬美元。天數的增加約佔這一增量的1/4。此外，還注意到以下重要事項：由於4 月1 日的績效增加，導致工資和福利成本增加；由於我們基本上是自我保險，因此醫療保健索賠增加；由於4 月1 日的時間安排，數據處理成本增加了700,000 美元。某些 IT 舉措。

On Slides 12 and 13, we are continuing to provide you with expanded metrics on capital and liquidity. First, on Slide 12, as of June 30, we maintained solid cushions over the regulatory minimums for all of our regulatory capital ratio. We have also provided you with an alternative view of our regulatory ratios, including the impact of AOCI. While we do not expect banks our size to be required to calculate our ratios this way, we believe this information may be useful to you.

在幻燈片 12 和 13 中，我們將繼續為您提供有關資本和流動性的擴展指標。首先，在幻燈片 12 上，截至 6 月 30 日，我們對所有監管資本比率的最低監管水平保持了堅實的緩衝。我們還為您提供了有關監管比率的另一種觀點，包括 AOCI 的影響。雖然我們預計我們規模的銀行不會被要求以這種方式計算我們的比率，但我們相信這些信息可能對您有用。

Our tangible common equity ratio was 7% at quarter end, in line with last quarter. Included in tangible common equity is accumulated other comprehensive loss on the available-for-sale portion of our investment portfolio and derivatives. This number totaled $312 million after tax on a total AFF portfolio of $2.6 billion.

截至季度末，我們的有形普通股比率為 7%，與上季度持平。有形普通股中包括我們投資組合和衍生品中可供出售部分的累計其他綜合損失。 AFF 投資組合總額為 26 億美元，稅後總額為 3.12 億美元。

On Slide 13, if we include the loss on our held-to-maturity investments, which is $115 million after tax on an HTM portfolio of $1.3 billion, our tangible common equity ratio would still be 6.6% at June 30, representing over $1.7 billion intangible capital.

在幻燈片13 中，如果我們將持有至到期投資的損失（即價值13 億美元的HTM 投資組合的稅後1.15 億美元）包括在內，那麼截至6 月30 日，我們的有形普通股權益比率仍為6.6%，相當於超過17 億美元無形資本。

On Slide 14, we provided you with a comprehensive look at our liquidity profile. When combining cash, committed and available FHLB capacity, the Fed discount window and unencumbered securities available to pledge under the Fed's bank term funding program, our committed liquidity is $8.2 billion at June 30. In addition, we maintained over $2.5 billion in Fed funds lines with other institutions.

在幻燈片 14 中，我們向您全面介紹了我們的流動性狀況。將現金、承諾和可用的FHLB 能力、美聯儲貼現窗口以及根據美聯儲銀行定期融資計劃可質押的無負擔證券相結合，我們截至6 月30 日的承諾流動性為82 億美元。此外，我們維持了超過25 億美元的聯邦資金額度與其他機構。

On Slide 15, we're providing you our updated guidance for 2023. Our guidance now assumes a 25 basis point Fed funds increase at the July meeting, followed by constant rates for the balance of the year. Based on this rate outlook, our 2023 guidance is as follows: we expect our net interest income on a non-FTE basis to be in the range of $830 million to $840 million.

在幻燈片 15 中，我們為您提供了 2023 年的最新指導。我們的指導現在假設聯邦基金在 7 月會議上增加 25 個基點，然後在今年剩餘時間內保持不變利率。根據這一利率展望，我們的 2023 年指導如下：我們預計非 FTE 基礎上的淨利息收入將在 8.3 億美元至 8.4 億美元之間。

We expect our provision for credit losses to be in the range of $55 million to $65 million. We expect our noninterest income, excluding securities gains to be in the range of $220 million to $230 million. We expect core noninterest expenses to be in the range of $645 million to $660 million for the year. This core amount excludes any special FDIC assessment, which may need to be recorded in the second half of the year if finalized during that period. And lastly, we expect our effective tax rate to be in the range of 17.5%, plus or minus for the year.

我們預計信用損失撥備將在 5500 萬美元至 6500 萬美元之間。我們預計，不包括證券收益的非利息收入將在 2.2 億至 2.3 億美元之間。我們預計今年核心非利息支出將在 6.45 億美元至 6.6 億美元之間。這一核心金額不包括任何特殊的 FDIC 評估，如果在此期間最終確定，可能需要在下半年記錄。最後，我們預計今年的有效稅率將在 17.5% 左右。

And with that, I'll now turn the call over to the operator for your questions.

現在，我將把電話轉給接線員詢問您的問題。

(Operator Instructions) Our first question will come from the line of Frank Schiraldi from Piper Sandler.

（操作員說明）我們的第一個問題將來自 Piper Sandler 的 Frank Schiraldi。

Just Mark, first on the noninterest-bearing by year-end, the 23%, is that ultimately where you expect Fulton to sort of end up? Do you think it could continue to trend lower? And then I just -- it's interesting to me, it seems like with all the focus on rates over the last few months, guys who wanted to shift out noninterest-bearing would have. I guess there's some sort of stimulus dollars that are still running down, and that's where they're running out of. But -- just -- are you starting to see a slowdown in that mix shift as well that gives you comfort on your year-end expectations?

馬克，首先是到年底的無息貸款，即 23%，這是您期望富爾頓最終達到的結果嗎？您認為該股還會繼續走低嗎？然後我只是 - 這對我來說很有趣，似乎過去幾個月所有的注意力都集中在利率上，那些想要轉移無息貸款的人會這樣做。我猜想某種刺激資金仍在減少，而這就是他們即將耗盡的地方。但是，您是否也開始看到這種混合轉變的放緩，這讓您對年底的預期感到放心？

Yes, Frank. So ultimately, where that number ends up beyond 2023, we'll obviously be coming out with '24 guidance at the early part of 2024, which will reflect that. But to answer the second part of your question, I would tell you that in the months of February, March and April, in each of those months, our total cost of deposits increased about 20 basis points on average per month. In May and June, that average fell to about 10 basis points. So we're still seeing an increase month-to-month, but we're starting to see that lessen a little bit. Now that can still change, obviously, but that certainly influenced some of the guidance that we're giving today.

是的，弗蘭克。因此，最終，如果這個數字在 2023 年之後結束，我們顯然會在 2024 年初發布“24 指導方針”，這將反映這一點。但回答你問題的第二部分，我告訴你，在2月、3月和4月，我們的存款總成本平均每月增加約20個基點。 5 月和 6 月，該平均值下降至約 10 個基點。因此，我們仍然看到逐月增加，但我們開始看到這種情況有所減少。顯然，現在情況仍然可能發生變化，但這肯定影響了我們今天給出的一些指導。

Got it. And from here, is it more of just kind of running down balances as opposed to shifting balances into interest-bearing balances when these clients you're thinking about moving money around?

知道了。從這裡開始，當您考慮轉移資金給這些客戶時，是否更多的是減少餘額，而不是將餘額轉變為生息餘額？

I mean, again, we're still seeing some shift out of noninterest bearing. I mean, obviously, we're giving guidance that still thinks we're going to have $800 million of that shift in the back half of the year. But that's down from what we saw in the first half of the year.

我的意思是，我們仍然看到一些非利息的轉變。我的意思是，顯然，我們給出的指導仍然認為我們將在今年下半年獲得 8 億美元的轉變。但這比我們上半年看到的情況有所下降。

Okay. And then just on. Just given all the focus in these flow about new capital rules, obviously, for a larger contingent of banks than Fulton. Just curious your thoughts on what the right sort of capital ratios are, either CET1 or TCE? And what sort of ratio do you guys target here?

好的。然後就可以了。考慮到這些流程的所有焦點都集中在新資本規則上，顯然，對於比富爾頓更大的銀行隊伍來說。只是好奇您對正確的資本比率是什麼的看法，是 CET1 還是 TCE？你們的目標比例是多少？

Yes, Frank, in terms of what we target, we look at the regulatory minimums and then by ratio, depending on that ratio, our house minimums are going to be 100 to 150 basis points above that. But where we sit right now, particularly on all of those regulatory ratios, which is our primary focus, on those, we have comfortable cushions even to our house amount.

是的，弗蘭克，就我們的目標而言，我們會考慮監管最低標準，然後按比例，根據該比例，我們的房屋最低標準將比該標準高 100 到 150 個基點。但我們現在所處的位置，特別是所有這些監管比率，這是我們主要關注的焦點，在這些比率上，我們甚至對我們的房屋數量也有舒適的緩衝。

Okay. I guess asked another way, do you expect these ratios to build in the near term, not necessarily? Any color there tied into the earnings guide?

好的。我想換個方式問，你預計這些比率會在短期內建立嗎？不一定嗎？盈利指南中有什麼顏色嗎？

Frank, I think we would see them build over time with earnings -- with the earnings stream. Really, the question is then how would we deploy that capital. And our capital strategy is to support organic growth first and then use for M&A or buybacks as we move forward. So we feel comfortable with our current capital levels. And as we generate more capital, we'll look to deploy that in those ways.

弗蘭克，我認為我們會看到它們隨著時間的推移隨著收益的增加而不斷增加——隨著收益流的增加。事實上，問題是我們將如何部署這筆資金。我們的資本策略是首先支持有機增長，然後在我們前進的過程中用於併購或回購。因此，我們對目前的資本水平感到滿意。當我們產生更多資本時，我們將尋求以這些方式進行部署。

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

（操作員說明）我們的下一個問題來自 Raymond James 的 Daniel Tamayo。

Maybe we just start off, just a clarification on the loan growth guidance. I think, Mark, you talked about that moderating. I'm assuming you're talking about from the prior guidance of the 4% to 6% and not relative to the strong growth in the second quarter?

也許我們只是開始，只是對貸款增長指導進行澄清。我想，馬克，你談到了調節。我假設您談論的是之前 4% 至 6% 的指導，而不是相對於第二季度的強勁增長？

Well, no, what I'm referring to is the strong growth that we've seen really in the first half of the year relative to what a typical year would be. So my comments on moderation is from the pace that we've seen in the first half of the year.

嗯，不，我指的是我們在今年上半年看到的相對於正常年份的強勁增長。因此，我對適度的評論來自於我們在今年上半年看到的步伐。

Okay. So how should we think about those comments? I mean if you could -- is that mid-single digit then still kind of in line with what you're thinking about for the back half of the year?

好的。那麼我們應該如何看待這些評論呢？我的意思是，如果可以的話，這個中個位數是否仍然符合您對今年下半年的預期？

Yes, Danny, we would -- those targets in the 4% to 6% range as we look forward, we had very strong loan growth in the first quarter. We had good growth again in the second quarter. As we're focused on appropriate risk-adjusted returns on loan pricing, we think we'll moderate from there. But our long-term targets and full year, we expect us to still be in that 4% to 6% range.

是的，丹尼，我們會——正如我們所期待的那樣，這些目標在 4% 到 6% 的範圍內，我們第一季度的貸款增長非常強勁。第二季度我們再次實現了良好的增長。由於我們專注於貸款定價的適當風險調整回報，因此我們認為我們將從那裡進行調整。但我們的長期目標和全年目標仍處於 4% 至 6% 的範圍內。

Okay. And then in terms of funding that growth, you mentioned your loan-to-deposit ratio is kind of in the middle of your -- of the range that you're comfortable with now. Is that -- should we infer that you could continue to let that drift up if you do lose some deposits? Or do you think you would be inclined to fund it with brokered or something kind of on the higher end of funding cost if you want to maintain that around 99%?

好的。然後，在為增長提供資金方面，您提到您的貸存比率處於您現在感到滿意的範圍的中間。那是不是——我們是否應該推斷，如果您確實損失了一些存款，您可以繼續讓存款上升？或者你認為如果你想維持在 99% 左右，你會傾向於通過經紀或某種資金成本較高的方式為其提供資金嗎？

Yes. Our goal is to grow the deposit base. As we move forward, we referenced we're growing accounts, we're growing deposit accounts specifically. We're fighting that trend of average account balances coming down. So we are very focused on growing deposits in a measured pace with loans. If that doesn't happen, we feel we have access to other sources to continue to support loan growth. But our strategy is -- what our long-term strategy has been is to grow loans and deposits in a more equal basis as we get back to and are now at historical kind of fully loaned position.

是的。我們的目標是擴大存款基礎。隨著我們的前進，我們提到我們正在增加賬戶，特別是我們正在增加存款賬戶。我們正在努力應對平均賬戶餘額下降的趨勢。因此，我們非常注重存款和貸款的適度增長。如果這種情況沒有發生，我們認為我們可以利用其他來源來繼續支持貸款增長。但我們的策略是——我們的長期策略是，當我們回到並處於歷史性的完全貸款狀態時，在更加平等的基礎上增加貸款和存款。

Okay. Yes, that makes sense. But as we think about kind of the rest of the year and in terms of the net interest income guidance, your -- that assumes you talked about with the noninterest-bearing, but that's kind of a mix shift of what's already there. If you're growing loans, that assumes you're funding it with what kind of deposit? I mean are you assuming when you're -- in terms of rate?

好的。是的，這是有道理的。但當我們考慮今年剩餘時間的情況以及淨利息收入指導時，假設您談論的是無息收入，但這是現有內容的混合轉變。如果你增加貸款，假設你用什麼樣的存款來為其提供資金？我的意思是，您是否假設您的利率？

Yes. So I mean, we want to grow noninterest-bearing deposits. It's really difficult in this environment. So then we would look to grow through deposit acquisition of new customers, which are typically promotional rate. And then we have plenty of capacity on broker deposits from there.

是的。所以我的意思是，我們希望增加無息存款。在這樣的環境下確實很難。因此，我們將尋求通過新客戶的存款獲取來實現增長，這通常是促銷率。然後我們有足夠的經紀人存款能力。

So we think we have sources. Organic growth, we've done a good job over time, and we really want to grow customer by customer. We this environment, it's tough to grow deposits. So we're making sure we have capacity to continue to support loan customers if we're getting the appropriate risk-adjusted return.

所以我們認為我們有消息來源。有機增長，隨著時間的推移，我們做得很好，我們真的希望逐個客戶地增長。在我們這種環境下，存款很難增長。因此，如果我們獲得適當的風險調整回報，我們將確保我們有能力繼續支持貸款客戶。

Well, I appreciate we -- you giving me some color into getting there on the funding side.

嗯，我很感謝我們——你們給了我一些幫助我在資金方面實現這一目標。

(Operator Instructions) And our next question will come from the line of Chris McGratty from KBW.

（操作員說明）我們的下一個問題將來自 KBW 的 Chris McGratty。

Great. Mark, just a clarification on the 40% beta. That's interest-bearing deposit beta full cycle?

偉大的。馬克，只是對 40% 貝塔值的澄清。這就是有息存款貝塔全週期嗎？

That is the total deposit beta.

這就是總存款貝塔值。

Total deposit beta. Okay. And then second, on costs. Obviously, the quarter was a touch heavy, but you said it was in line with kind of our expectations. Is there anything beyond what you've given us in your guidance that you're considering if the environment -- if the revenue environment stays like it is a little bit challenging? Anything you can pull on the expense lever in the back half or early next year?

總存款貝塔值。好的。其次，關於成本。顯然，這個季度有點沉重，但你說這符合我們的預期。除了您在指導中向我們提供的內容之外，您正在考慮的環境（如果收入環境仍然有點具有挑戰性）嗎？下半年或明年初你可以採取哪些措施來控制費用？

Yes, Chris, it's Curt. We are committed to managing expenses appropriately. As we see the back half of the year unfold with growth in revenue, we'll take the appropriate cost actions that we need to. We're committed to being within target range on expenses and we'll manage those as we have in the past to make sure we have an appropriate cost structure.

是的，克里斯，我是柯特。我們致力於適當管理費用。當我們看到下半年收入增長時，我們將採取適當的成本行動。我們致力於將費用控制在目標範圍內，並將像過去一樣進行管理，以確保我們擁有適當的成本結構。

(Operator Instructions) Our next question will come from the line of David Bishop from Hovde Group.

（操作員說明）我們的下一個問題將來自 Hovde Group 的 David Bishop。

Mark, I wasn't sure if I heard you correct, but during the preamble. In terms of your outlook for maintaining cash and investments, I understand that you think cash has sort of reached a floor here. You're looking to build the liquidity or just curious what our expectation should be for cash and equivalents and investments from here?

馬克，我不確定我聽得是否正確，但在序言部分。就您維持現金和投資的前景而言，我理解您認為現金已經達到了底部。您正在尋求建立流動性，或者只是好奇我們對這裡的現金、等價物和投資的期望是什麼？

Yes. Yes. We had sat on some excess cash post March 8 for about a 2-, 2.5-month stretch. And then as I think -- as we felt like we had gotten past the liquidity crisis in the industry, we reverted back to our longer-term kind of cash targets. And with respect to the investment portfolio, we've always targeted that to be around 15% of assets. And so you'll see that continue to grow in step with the total balance sheet growth.

是的。是的。 3 月 8 日之後，我們持有一些多餘的現金大約有 2、2.5 個月的時間。然後，正如我所想，當我們感覺我們已經擺脫了行業的流動性危機時，我們又回到了長期的現金目標。就投資組合而言，我們的目標始終是資產的 15% 左右。因此，您會看到它繼續與總資產負債表的增長同步增長。

Got it. And then I appreciate the disclosures on the office -- CRE portfolio. Just curious maybe turning to prism with interest rates rising here, are you seeing any sort of degradation yet on the consumer side of the house from a credit quality perspective?

知道了。然後我很欣賞 CRE 辦公室的信息披露。只是好奇，隨著這裡利率的上升，您是否從信用質量的角度看到了房屋消費者方面的任何退化？

Dave, we are not -- credit metrics remain stable across the board. We're doing a lot of work on interest rate sensitivity at a customer level. But we see pretty stable credit scores, delinquency is good. Those leading indicators continue to be positive.

戴夫，我們不是——信用指標全面保持穩定。我們在客戶層面的利率敏感性方面做了很多工作。但我們看到信用評分相當穩定，拖欠率也很好。這些領先指標仍然積極。

Got it. And final question, I think you mentioned maintaining the risk adjusted pricing. Just curious maybe what you're able to onboard new commercial loans at across your markets during the quarter.

知道了。最後一個問題，我認為您提到了維持風險調整定價。只是好奇，也許您在本季度能夠在各個市場上獲得新的商業貸款。

Sure. Yes, commercial loans will vary a little bit, obviously, by product. But in general, in the second quarter, new money came on generally between 7 -- low to mid-7s.

當然。是的，商業貸款顯然會因產品而略有不同。但總體而言，第二季度的新增資金數量一般在 7 左右——低至 7 左右。

(Operator Instructions) Our next question comes from Feddie Strickland from Janney Montgomery.

（操作員說明）我們的下一個問題來自 Janney Montgomery 的 Feddie Strickland。

Just on expenses, it sounds like we should expect quarterly expenses to decline in the third and fourth quarter, just given your guidance. Can you walk us through some of the drivers and timing there just over the next couple of quarters?

僅就費用而言，根據您的指導，聽起來我們應該預計第三季度和第四季度的季度費用會下降。您能否向我們介紹一下未來幾個季度的一些驅動因素和時機？

Yes. So the drivers there is, there were a couple of items in the second quarter that we would deem to be things that will not recur, which probably in the aggregate totaled about $2 million. But you're correct. If you take the guide and look to where we are midyear, we would expect over the next couple of quarters for expenses to come down a little bit. There's also just some normal things with the real estate and otherwise, which should back off a little bit in the second half of the year.

是的。因此，第二季度有一些我們認為不會再次發生的項目，其總價值可能約為 200 萬美元。但你是對的。如果您參考該指南並了解我們年中的情況，我們預計未來幾個季度的支出會略有下降。房地產和其他方面也有一些正常的情況，下半年應該會有所回落。

Got it. That's helpful. And then switching gears to the margin. I know you haven't provided 2024 guidance yet, but is it reasonable to see the margin bottoming towards the end of this year and then potentially expand into early 2024, just as loans reprice and earning assets potentially remix with the assumption that the Fed stops hiking this year after 1 or 2 more hikes?

知道了。這很有幫助。然後將齒輪切換到邊緣。我知道您尚未提供 2024 年指導，但看到利潤率在今年年底觸底並可能擴大到 2024 年初是否合理，就像貸款重新定價和盈利資產可能在美聯儲停止美聯儲的假設下重新混合一樣今年再徒步一兩次後還想徒步嗎？

Well, yes, I was going to start my comments with what you just said at the end. I mean I think depending -- if we all had that crystal ball to know when rates will stop and when will start to actually then how long will the pause be before we start to see the expected declines. But I think if that scenario plays out the way you're saying it, yes, I think it's reasonable to assume that somewhere in the first half of '24 is where you see things bottom out.

嗯，是的，我將以你最後所說的話開始我的評論。我的意思是，我認為取決於 - 如果我們都有水晶球知道利率何時停止以及何時開始實際停止，那麼在我們開始看到預期的下降之前，暫停需要多長時間。但我認為，如果這種情況按照你所說的方式發生，是的，我認為可以合理地假設，在 24 年上半年的某個時候，你會看到事情觸底。

Understood. And just one last question for me. that same discussion point as we potentially near the end of the hiking cycle. Have you considered restructuring the securities portfolio for additional interest income and potentially taking some unrealized losses, I guess, realizing them? And can you remind us the duration of the securities portfolio today?

明白了。還有最後一個問題要問我。與我們可能接近徒步週期結束時的討論點相同。您是否考慮過重組證券投資組合以獲得額外的利息收入，並可能承擔一些未實現的損失，我猜，實現它們？您能否提醒我們今天證券投資組合的久期？

Yes. Yes. So we have looked at those and haven't found one that was compelling enough to actually execute on. But I mean, I mean, we consider those kind of transactions. We've certainly seen other -- some other institutions do it.

是的。是的。所以我們已經研究了這些，但沒有找到一個足夠引人注目的可以實際執行的方案。但我的意思是，我們考慮這類交易。我們當然也看到過其他一些機構這樣做。

For us, the total duration of the portfolios between -- it's around 5.5 to 6 years. We're a little bit longer there because we have so much commercial loans that are short. So from -- just an interest rate risk perspective, we've taken a little bit more duration in the investment portfolio to balance out our overall interest rate...

對我們來說，投資組合的總期限約為 5.5 至 6 年。我們的時間稍微長一點，因為我們有很多短期的商業貸款。因此，從利率風險的角度來看，我們在投資組合中採取了更長的期限來平衡我們的整體利率......

(Operator Instructions) Our next question comes from line of Manuel Navas from D.A. Davidson.

（操作員說明）我們的下一個問題來自 D.A. 的 Manuel Navas。戴維森。

Just following up on the securities portfolio. If -- how much -- given that duration, how much of that AOCI and given if rates stayed, we just had one more hike and rates were that paused, how fast would that AOCI build back by the end of '24?

只是跟進證券投資組合。如果考慮到持續時間、AOCI 的多少以及利率保持不變，我們再進行一次加息並且利率暫停，那麼到 24 年底，AOCI 會以多快的速度恢復？

A lot of that, Manuel, really depends on do you think do rates pause and the curve stays inverted or the rates -- I mean, really what happens in kind of that intermediate portion of the curve is going to have the most influence over that AOCI level. But I mean, assuming it stays exactly where it is, if you just look at kind of the -- what that total number is today of $320-some-odd million, that would bleed out over that duration and revert back to par.

曼努埃爾，這很大程度上取決於你認為利率會暫停並且曲線保持倒掛還是利率 - 我的意思是，實際上曲線中間部分發生的情況將對這一點產生最大的影響AOCI 級別。但我的意思是，假設它保持在原來的位置，如果你看看今天的總金額是 320 多萬美元，那麼在這段時間內就會流失並恢復到標準水平。

Okay. That's helpful. Could you remind me on some of the seasonality you see in deposit flows coming into the back half of the year?

好的。這很有幫助。您能否提醒我一下您在今年下半年的存款流量中看到的一些季節性？

Yes, sure. Typically, what we see in the third quarter, that's our high watermark because of our municipal book. And if we look back over the last 5 years, we've typically seen between a $300 million and a $500 million increase in the third quarter. I would expect this year for that to be at the lower end of that range versus the higher end of that range. And then we typically see from then the third quarter to the fourth quarter, most of that money flow out. We typically see the same kind of numbers between $275 million and call it, $350 million of outflows of what we've experienced.

是的，當然。通常，我們在第三季度看到的情況是，由於我們的市政書籍，這是我們的高水位線。如果我們回顧過去 5 年，我們通常會看到第三季度的增幅在 3 億至 5 億美元之間。我預計今年該數字將處於該範圍的下限而不是該範圍的上限。然後我們通常會看到從第三季度到第四季度，大部分資金流出。我們通常會看到 2.75 億美元之間的同類數字，並將其稱為我們所經歷的 3.5 億美元的資金外流。

And look -- you're having success in growing number of accounts. Have you kind of looked at where flows have gone? And you probably -- are you seeing just a lot of net increases and you're really not seeing any one exit, it's just more people using their funds? Or do you feel confident that you're deposit flows are staying and not necessarily exiting the bank?

看吧——您的賬戶數量正在不斷增加。您是否了解過資金流向何處？你可能會看到大量淨增長，但實際上沒有看到任何退出，只是更多的人使用他們的資金？或者您是否有信心存款流繼續留在銀行而不一定會流出銀行？

Well, I mean, we're growing net new accounts. I mean, we have flows and accounts that close or really the average balance comes down. So what we're seeing more is the impact of average balance as customers migrate internally to higher-yielding products. We see some outflows, and we are aggressive in all of our markets to grow new households and bring new deposits into the organization.

嗯，我的意思是，我們正在增加淨新帳戶。我的意思是，我們的流量和賬戶關閉了，或者平均餘額確實下降了。因此，我們更多地看到的是，隨著客戶內部遷移到收益更高的產品，平均餘額的影響。我們看到了一些資金外流，並且我們在所有市場上都積極進取，以增加新的家庭並為組織帶來新的存款。

We have a very low average account balance, it's small business and consumer, and we're consistently adding accounts but fighting those headwinds of average balance declines then really aggressive pricing strategies in the market that we won't follow, we do have some attrition based on that. And that's why we're focused on the net growth in accounts because over time, that's what we really need to be winning.

我們的平均賬戶餘額非常低，這是小型企業和消費者，我們不斷增加賬戶，但要與平均餘額下降的逆風作鬥爭，然後我們不會遵循市場上真正激進的定價策略，我們確實有一些流失基於此。這就是為什麼我們關注賬戶淨增長，因為隨著時間的推移，這才是我們真正需要贏得的。

And just a follow-up on loan growth and pricing. Are you seeing -- how fast do you see demand come down? And you're being more selective on pricing and kind of pricing up? Is it -- are you seeing uptake -- you're getting the growth you want to see on that commercial side at the pricing you want?

這只是貸款增長和定價的後續行動。您是否看到需求下降的速度有多快？你們在定價和定價方面變得更加挑剔？是不是——你看到了採用率——你在商業方面以你想要的價格獲得了你想要看到的增長嗎？

Where we're seeing the biggest impact would be residential mortgage. I mean it's just much more of a rate-sensitive market. So as you adjust those, that's where we would see growth moderating the most based on actions we took in the first and second quarter. There's a long pull-through rate until those actually hit the balance sheet. So that's where you'll see the most volatility from first half to second half in loan growth.

我們看到影響最大的是住宅抵押貸款。我的意思是，這更像是一個對利率敏感的市場。因此，當您調整這些內容時，根據我們在第一季度和第二季度採取的行動，我們會看到增長放緩幅度最大的地方。在這些資產真正進入資產負債表之前，有一個很長的拉動率。因此，這就是上半年到下半年貸款增長波動最大的地方。

On commercial loan growth, we think we can continue to generate steady organic originations even at higher yields as we continue to support customers, continue to support all segments within the marketplace if we think we can continue to generate steady reasonable organic growth going forward in commercial.

在商業貸款增長方面，我們認為，如果我們認為我們能夠繼續在商業領域繼續產生穩定、合理的有機增長，那麼即使收益率較高，我們也可以繼續產生穩定的有機起源，因為我們繼續支持客戶，繼續支持市場內的所有細分市場。 。

And just a follow-up on your comment that the loan beta is around 46%. Do you see that staying constant with each rate hike or you actually see that creeping up towards like the 50% level as old loans reprice higher?

這是您關於貸款貝塔係數約為 46% 的評論的後續行動。您是否認為每次加息都會保持不變，或者您實際上看到隨著舊貸款重新定價更高，利率會逐漸上升到 50% 的水平？

Yes, exactly. We would expect to see that creep up a little bit higher, and that was the point of my earlier comment that by end of the cycle, why we still expect to see that loan beta higher than the deposit beta.

對，就是這樣。我們預計會看到這一數字略微上升，這就是我之前評論的要點，即到週期結束時，為什麼我們仍然預計貸款貝塔值會高於存款貝塔值。

(Operator Instructions) Our next question will come from the line of Matthew Breese from Stephens.

（操作員說明）我們的下一個問題將來自 Stephens 的 Matthew Breese。

Just curious, on the margin, could you give me some idea for how the margin progressed throughout the quarter? And for the end of June or for the month of June, how does that compare to the full quarter?

只是好奇，在利潤方面，您能否告訴我整個季度利潤率的進展情況？六月底或六月份與整個季度相比如何？

Yes. So on the full quarter average, we went from 3.53% in the first quarter to 3.40% in the second quarter. As I noted earlier, we saw a 20 basis point increase in our cost of deposits in the month of April. Some of that was really just kind of full quarter impact of some of the broker deposits that we put on in the first quarter. So then we saw in the months of May and June, we saw that cost of deposits increased only 12 basis points and 8 basis points. So our progression on margin then was that we ended the month of June at 3.40%, which was the average for the quarter as well. So we did not finish the month of June lower than the average for the quarter.

是的。因此，就整個季度的平均水平而言，我們從第一季度的 3.53% 上升到第二季度的 3.40%。正如我之前指出的，4 月份的存款成本增加了 20 個基點。其中一些實際上只是我們在第一季度存入的一些經紀商存款對整個季度的影響。那麼我們在 5 月和 6 月看到存款成本僅增加了 12 個基點和 8 個基點。因此，我們當時的利潤率進展是，截至 6 月份，我們的利潤率為 3.40%，這也是該季度的平均水平。因此，我們 6 月份的業績並沒有低於該季度的平均水平。

Understood. Okay. And then maybe -- maybe thinking about incremental loan yields today in the low to mid-7% range. There's one more Fed hike it appears to be. Beyond that last Fed hike, how should we be thinking about the quarterly increase in loan yields in a pause scenario versus what we've seen over the past handful of quarters?

明白了。好的。然後也許——也許考慮今天的增量貸款收益率在 7% 的低至中水平範圍內。美聯儲似乎又加息了一次。除了上次美聯儲加息之外，與我們過去幾個季度所看到的情況相比，我們應該如何看待暫停情況下貸款收益率的季度增長？

Yes. Can you just repeat that again? I just want to make sure I got it right.

是的。你能再重複一遍嗎？我只是想確保我做對了。

Yes. So once the Fed is done in the ensuing quarters, how should we be thinking about the ramp in average loan yields? To what extent will they continue to go higher? What's the mix?

是的。因此，一旦美聯儲在接下來的幾個季度採取行動，我們應該如何考慮平均貸款收益率的上升？他們會繼續走高到什麼程度？混合是什麼？

Yes. We have -- as we look to loans that mature and come off. I mean, we are still seeing -- while that's starting to narrow a little bit, we still see new loans reprice higher for the past several quarters on both the consumer side and the commercial side.

是的。當我們尋找到期並到期的貸款時，我們已經這樣做了。我的意思是，我們仍然看到，雖然這一數字開始略有縮小，但我們仍然看到過去幾個季度消費者和商業方面的新貸款重新定價都較高。

Okay. I think going back to the flat NIM end of June of 3.40%. Just thinking about the NII guide for the year, it implies that there's a ramp down in quarterly NII towards, call it, $200 million to $205 million. Where do you see that bottoming? When do you see that bottoming? And do you think you can hold $200 million in NII per quarter through the end of the year, maybe even in the beginning of 2024?

好的。我認為回到 6 月底 3.40% 的平穩淨息差水平。只要考慮一下今年的 NII 指南，就意味著季度 NII 會下降，即 2 億美元至 2.05 億美元。您在哪裡看到觸底？你什麼時候看到觸底？您認為您可以每季度持有 2 億美元的 NII 直到年底，甚至可能到 2024 年初嗎？

Yes. Really, I feel like such a broken record on this, Matt. It really comes back to where that noninterest-bearing percentage ultimately ends up. And so we feel comfortable with the guide that we're giving for the balance of the year. We're going to be tracking that really closely here over the third quarter and then be able to kind of revise again for the final quarter of the year, and then we're going to track the fourth quarter really closely to be able to give our guidance for 2024.

是的。真的，我覺得這件事打破了記錄，馬特。這確實回到了無息百分比最終的結果。因此，我們對今年剩餘時間提供的指南感到滿意。我們將在第三季度非常密切地跟踪這一點，然後能夠在今年最後一個季度再次進行修改，然後我們將非常密切地跟踪第四季度，以便能夠給出我們對 2024 年的指導。

But it appears from the runoff, which was over $1.3 billion -- $1.2 billion in noninterest-bearing declines in the first half of the year, it appears that, that's starting to slow, but does that slow to a nominal number by the end of the year or there's going to be some trickle into next year remains to be seen. The other factor in your question is, does the Fed truly pause after 1 or 2 more rate increases and then how long is the pause until we start to see the rate declines.

但從今年上半年超過 13 億美元（即 12 億美元的無息下降）的決選來看，這一數字似乎開始放緩，但到 2019 年底，這一數字是否會放緩至名義數字？今年或明年是否會出現一些情況還有待觀察。你問題中的另一個因素是，美聯儲在加息一兩次後是否真的會暫停，以及暫停多久直到我們開始看到利率下降。

Okay. Switching to commercial swap fees, very strong this quarter, as strong as we've seen in some time. One, how sustainable is that? And two, what caused the ramp in commercial swap fees, just curious what was behind it?

好的。轉向商業掉期費用，本季度非常強勁，與我們一段時間以來所看到的一樣強勁。一，這有多可持續？第二，是什麼導致了商業掉期費用的上升，只是好奇其背後的原因是什麼？

Yes, Matt, they're predominantly tied to originations, and they really depend on the mix of originations when you get some larger C&I loans or CRE loans, they typically are swap and they really drive the number. So that was timing to really tied to originations in the second quarter. So we do see that moderating, but we feel we can have that land in more historical levels.

是的，馬特，它們主要與來源相關，當你獲得一些較大的 C&I 貸款或 CRE 貸款時，它們實際上取決於來源的組合，它們通常是掉期，它們確實推動了數字。因此，這正是與第二季度的啟動真正相關的時機。因此，我們確實看到這種情況有所緩和，但我們認為我們可以在更歷史的層面上擁有這片土地。

So we probably will see that come off linked quarter, but we still have a good pipeline and would expect good performance, maybe not great performance in the third, fourth quarter. For the full year, we're expecting to hit our targets and have that be a meaningful line item for us.

因此，我們可能會看到相關季度的業績下降，但我們仍然擁有良好的渠道，並預計會有良好的業績，但第三、第四季度的業績可能不會很好。我們預計全年都能實現目標，並使其成為對我們有意義的訂單項目。

Okay. Bigger picture, not that it applies to you, but I just wanted your thoughts on it. In late June, there was joint interagency guidance from the FDIC, the Fed, the OCC on prudent commercial real estate loan accommodations and workouts. And I guess I wanted your perspective on how this plays out from a practical standpoint? What does it look like in terms of how you help customers? What are the expected tools that you can use? And how are these accommodations and workouts be disclosed if and when they occur.

好的。更大的圖景，並不適用於你，但我只是想听聽你對此的看法。 6 月下旬，FDIC、美聯儲、OCC 就審慎的商業房地產貸款調整和解決問題聯合發布了跨機構指南。我想我想听聽您從實際角度來看這件事是如何發生的？您如何幫助客戶？您可以使用哪些預期工具？如果發生這些調整和鍛煉，如何披露？

Yes. I think there's really a lot more to learn there on what we could do that would be different than historical standards. I mean we work with borrowers when the borrowers work with us over time. And we try to bridge to the best individual loan resolution for the bank and the customer. So we don't really anticipate that, that would change our workout strategy or customer strategy. But if there are new tools or new things that we can look at it based on regulatory standards, we'll certainly look at that and see how it impacts our strategy.

是的。我認為，關於我們可以做哪些與歷史標準不同的事情，確實還有很多東西需要學習。我的意思是，當借款人隨著時間的推移與我們合作時，我們就會與借款人合作。我們努力為銀行和客戶提供最佳的個人貸款解決方案。因此，我們並不真正預計這會改變我們的鍛煉策略或客戶策略。但是，如果我們可以根據監管標準來看待新工具或新事物，我們肯定會關注它並了解它如何影響我們的戰略。

Do you expect in those cases where you do help somebody out beyond kind of what's allowable by the market that these loans will be disclosed?

您是否期望在您確實幫助某人擺脫市場允許範圍之外的情況下，這些貸款將被披露？

We certainly will disclose them if we have to. Again, as these new rules would be developed or any changes would be developed how we -- how that would impact disclosures of accommodations. You go back to during the COVID pandemic response where we are granted the TDR changes and the ability to due deferrals. I think that had a really, really positive effect overall on the marketplace, and it was a regulatory allowance that made sense. We'll see how these rules play out. But in that event, we were very transparent and disclose exactly what deferrals we had done, how we're thinking about that. As these rules would play out, we would do the same thing.

如果有必要，我們當然會披露它們。同樣，隨著這些新規則的製定或任何變化的製定，我們將如何影響住宿的披露。回顧一下新冠疫情應對期間，我們獲得了 TDR 變更和到期延期的能力。我認為這對整個市場產生了非常非常積極的影響，而且這是一項有意義的監管津貼。我們將看看這些規則如何發揮作用。但在那種情況下，我們非常透明，準確地披露了我們做了哪些延期，以及我們是如何考慮的。當這些規則生效時，我們也會做同樣的事情。

Okay. Last one for me, just in terms of M&A, obviously, multiples across the industry are depressed, but just wanted to get a sense for -- if there are any conversations that are ongoing, whether or not conversation levels have increased and how you think about M&A in this type of environment? That's all I had.

好的。我的最後一個，就併購而言，顯然，整個行業的市盈率都很低迷，但只是想了解一下——是否有任何對話正在進行，對話水平是否有所增加以及您的想法在這種環境下併購怎麼樣？這就是我所擁有的一切。

Yes, Matt. And so we have M&A opportunities that we're always looking at. So we do think there will be opportunities for us in the marketplace. There are certainly headwinds right now based on stock price based on the marks that we would need to take on loan book and investment book to make those happen.

是的，馬特。因此，我們一直在尋找併購機會。所以我們確實認為我們在市場上會有機會。基於股價，基於我們需要在貸款賬簿和投資賬簿上實現這些目標的標記，現在肯定存在阻力。

I guess where we are right now is as the market stabilize, we would certainly engage in those discussions. And we want to make sure we're positioned to take advantage of opportunities that come up in this more challenging time. We would, as you know, be very prudent and thorough on our credit book review in this environment and just the overall analysis of a deal. But we will -- we feel we will have opportunities and we're working hard to make sure we're positioned to take advantage of any of those opportunities that make sense for us.

我想我們現在的情況是，隨著市場穩定，我們肯定會參與這些討論。我們希望確保我們能夠充分利用這個更具挑戰性的時期出現的機會。如您所知，在這種環境下，我們將非常謹慎和徹底地進行信用賬簿審查以及對交易的整體分析。但我們會——我們覺得我們會有機會，我們正在努力確保我們能夠利用任何對我們有意義的機會。

(Operator Instructions) All right. It looks like there's no more questions in the queue. I'd like to turn the call back over to Curt Myers for closing remarks.

（操作員指示）好的。隊列中似乎沒有更多問題了。我想將電話轉回給科特·邁爾斯進行總結髮言。

Well, thank you again for joining us today. We hope you'll be able to be with us when we discuss third quarter results in October. Thanks, everyone.

好的，再次感謝您今天加入我們。我們希望您能夠在十月份討論第三季度業績時與我們在一起。感謝大家。

This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.

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。大家，祝你有美好的一天。