Huntington Bancshares Inc (HBAN) 2023 Q4 法說會逐字稿

Greetings, and welcome to Huntington Bancshares 2023 Fourth Quarter Earnings Review. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎來到 Huntington Bancshares 2023 年第四季財報回顧。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to Tim Sedabres, Director of Investor Relations. Please go ahead.

現在我想將會議交給投資者關係總監 Tim Sedabres。請繼續。

Thank you, operator. Welcome, everyone, and good morning. Copies of the slides we will be reviewing today can be found on the Investor Relations section of our website, www.huntington.com. As a reminder, this call is being recorded, and a replay will be available starting about one hour from the close of the call. Our presenters today are Steve Steinour, Chairman, President and CEO; and Zach Wasserman, Chief Financial Officer. Brendan Lawlor, Chief Credit Officer, will join us for the Q&A.

謝謝你，接線生。歡迎大家，早安。我們今天要審查的幻燈片副本可以在我們網站 www.huntington.com 的投資者關係部分找到。謹此提醒，本次通話正在錄音，通話結束後約一小時即可重播。今天我們的主講人是董事長、總裁兼執行長 Steve Steinour；和財務長 Zach Wasserman。首席信貸官布倫丹·勞勒 (Brendan Lawlor) 將參加我們的問答。

Earnings documents, which include our forward-looking statements disclaimer and non-GAAP information are available on the Investor Relations section of our website.

收益文件（包括我們的前瞻性聲明免責聲明和非公認會計原則資訊）可在我們網站的投資者關係部分取得。

With that, let me now turn it over to Steve.

現在讓我把它交給史蒂夫。

Thanks, Tim. Good morning, everyone, and welcome. Thank you for joining the call today. We're pleased to announce our fourth quarter results, which Zach will detail later. These results are again supported by our colleagues across the bank who live our purpose everyday as we make people's lives better, help businesses thrive and strengthen the communities we serve.

謝謝，蒂姆。大家早安，歡迎光臨。感謝您今天加入通話。我們很高興宣布第四季度的業績，扎克稍後將詳細介紹。這些成果再次得到了全行同事的支持，他們每天都在實踐我們的目標，讓人們的生活變得更美好，幫助企業蓬勃發展，並加強我們所服務的社區。

Now on to Slide 4. There are 5 key messages we want to leave you with today. First, we are leveraging our position of strength and executing on our strategic growth initiatives. We are well positioned to benefit during times like these. We managed our capital levels to enable us to accelerate initiatives during 2023 and support continued growth. We added key specialty verticals in commercial banking and expanded into the Carolinas.

現在轉到投影片 4。今天我們想向您傳達 5 個關鍵訊息。首先，我們正在利用我們的優勢地位並執行我們的策略成長計劃。我們處於有利位置，可以在這樣的時期受益。我們管理我們的資本水平，使我們能夠在 2023 年加速實施計劃並支持持續成長。我們增加了商業銀行領域的關鍵專業垂直領域，並擴展到卡羅來納州。

Second, we outperformed on both deposits and loans throughout the year. Our colleagues are acquiring new customers and deepening our existing customer relationships. Importantly, we delivered this growth while effectively managing our deposit beta. Third, we expect to modestly expand net interest income as we manage the challenges of the interest rate cycle and are driving increased fee revenues.

二是全年存貸款雙雙跑贏。我們的同事正在爭取新客戶並深化我們現有的客戶關係。重要的是，我們在實現這一增長的同時有效管理了我們的存款貝塔值。第三，隨著我們應對利率週期的挑戰並推動手續費收入的增加，我們預計將適度擴大淨利息收入。

Fourth, we are rigorously managing credit across our portfolios, consistent with our aggregate moderate-to-low risk appetite. Credit trends are normalizing as expected, and we continue to believe we will outperform the industry on credit through the cycle.

第四，我們正在嚴格管理整個投資組合的信貸，這與我們整體的中低風險偏好一致。信貸趨勢正按預期正常化，我們仍然相信，在整個週期中，我們的信貸表現將優於行業。

Finally, we remain intently focused on our core strategies. Huntington remains resilient through the events of 2023, emerging as one of the strongest regional banks. We maintained our disciplined execution, and we expect to grow earnings over the course of 2024 and continuing into 2025 and beyond.

最後，我們仍然專注於我們的核心策略。亨廷頓銀行在 2023 年發生的事件中仍然保持韌性，成為最強大的區域銀行之一。我們保持嚴格的執行力，預計 2024 年獲利將持續成長，並持續到 2025 年及以後。

I will move us on to Slide 5 to recap our performance in 2023. Huntington delivered solid results over the course of the year against a challenging backdrop. While the banking sector faced headwinds early in the year, Huntington emerged as a secular winner, gaining new customers, adding over $3 billion of deposit growth and further bolstering our capital. We also increased loans by $2.5 billion for the full year or 2%, while driving capital ratios higher. We expect the pace of loan growth to accelerate in 2024. We added to our revenue base, primarily as net interest income increased by 3.3% for the full year. We maintained our leadership in customer satisfaction and digital capabilities having again been awarded the #1 ranking by J.D. Power for both categories. We remain focused on executing our strategies, including growing consumer primary bank relationships by 3%.

我將讓我們進入幻燈片 5，回顧我們 2023 年的表現。亨廷頓在這一年中在充滿挑戰的背景下取得了紮實的成果。雖然銀行業在今年年初面臨逆風，但亨廷頓成為長期贏家，贏得了新客戶，增加了超過 30 億美元的存款成長，並進一步增強了我們的資本。我們還全年增加了 25 億美元貸款，即 2%，同時提高了資本比率。我們預計 2024 年貸款成長速度將加快。我們增加了收入基礎，主要是因為全年淨利息收入成長了 3.3%。我們在客戶滿意度和數位能力方面保持領先地位，並再次被 J.D. Power 評為這兩個類別的第一名。我們仍然專注於執行我們的策略，包括將消費者主要銀行關係成長 3%。

Additionally, we completed the realignment of business segments. We also delivered on efficiency initiatives, including Operation Accelerate, the voluntary retirement program, staffing efficiencies and business process offshoring and branch and other real estate consolidations. We were nimble and opportunistic, adding key talent this past year with the addition of 3 new specialty commercial banking verticals. We also expanded our commercial and regional bank into the Carolinas, adding experienced teams in these attractive and high-growth markets.

此外，我們也完成了業務板塊的重組。我們還實施了效率舉措，包括營運加速、自願退休計劃、人員效率和業務流程離岸以及分支機構和其他房地產整合。我們靈活且善於把握機會，去年增加了關鍵人才，增加了 3 個新的專業商業銀行垂直領域。我們還將商業和區域銀行擴展到卡羅來納州，在這些有吸引力且高成長的市場中增加了經驗豐富的團隊。

Additionally, we further strengthened our balance sheet and drove capital ratios higher over the course of the year. We are getting ahead of proposed industry requirements. And finally, credit was managed exceptionally well with full year net charge-offs of 23 basis points.

此外，我們在這一年中進一步加強了資產負債表並提高了資本比率。我們正在超越擬議的行業要求。最後，信用管理得非常好，全年淨沖銷為 23 個基點。

Moving to Slide 6. Looking ahead to 2024, we have a clear set of objectives. We will leverage our position of strength to increase growth of both deposits and loans. This outlook will result in accelerated revenue growth and is further bolstered by fee opportunities. This posture coupled with our dynamic balance sheet management and hedging programs is expected to benefit the revenue and profitability outlook for 2024 and further expand into 2025 and beyond. This aligns with the improving macro backdrop, the higher probability of continued GDP growth and the avoidance of a hard landing. While we deliver this accelerated growth, we will continue to maintain our aggregate moderate-to-low risk appetite.

轉到投影片 6。展望 2024 年，我們有一套明確的目標。發揮優勢，促進存貸款雙倍成長。這一前景將導致收入加速成長，並受到收費機會的進一步推動。這種狀況加上我們的動態資產負債表管理和對沖計劃，預計將有利於 2024 年的收入和盈利前景，並進一步擴大到 2025 年及以後。這與宏觀背景改善、GDP 持續成長的可能性較高以及避免硬著陸相一致。在我們實現加速成長的同時，我們將繼續維持整體中低風險偏好。

Zach, over to you to provide more detail on our financial performance.

扎克，請您提供有關我們財務業績的更多詳細資訊。

Thanks, Steve, and good morning, everyone. Slide 7 provides highlights of our fourth quarter results. We reported GAAP earnings per common share of $0.15 and adjusted EPS of $0.27. The quarter included $226 million of notable items, primarily related to the FDIC special assessment, which impacted EPS by $0.12 per common share. Additionally, the termination of the pay-fixed swaption hedging program impacted pretax income by $74 million or $0.04 per share.

謝謝史蒂夫，大家早安。幻燈片 7 提供了我們第四季業績的亮點。我們報告的 GAAP 普通股收益為 0.15 美元，調整後每股收益為 0.27 美元。該季度包括 2.26 億美元的顯著項目，主要與 FDIC 特別評估相關，影響每股普通股每股收益 0.12 美元。此外，固定薪酬互換選擇權對沖計畫的終止影響了稅前收入 7,400 萬美元，即每股 0.04 美元。

Return on tangible common equity, or ROTCE, came in at 8.4% for the quarter. Adjusted for notable items, ROTCE was 15.1%. Average deposits continued their trend of growth into the fourth quarter, increasing by $1.5 billion or 1%. Cumulative deposit beta totaled 41% through year-end. Loan balances increased by $445 million as we continue to optimize the pace of loan growth to drive the highest return on capital. Credit quality remains strong. The trend is normalizing consistent with our expectations, and net charge-offs totaled 31 basis points. Allowance for credit losses ended the quarter at 1.97%.

本季有形普通股回報率 (ROTCE) 為 8.4%。在值得注意的項目進行調整後，ROTCE 為 15.1%。第四季平均存款持續維持成長趨勢，增加 15 億美元，成長 1%。截至年底，累計存款貝塔係數總計 41%。隨著我們繼續優化貸款成長速度以推動最高資本回報率，貸款餘額增加了 4.45 億美元。信用品質依然強勁。這一趨勢正在正常化，符合我們的預期，淨沖銷總計 31 個基點。本季末信貸損失準備金率為 1.97%。

Turning to Slide 8. As I noted, average loan balances increased quarter-over-quarter and were higher by 2% year-over-year. We expect the pace of future loan growth to accelerate over the course of 2024. Total commercial loans increased by $125 million for the quarter and included distribution finance, which increased by $225 million, benefited by normal seasonality as manufacturer shipments increased due to inventory build of winter products. Auto Floorplan increased by $359 million and CRE balances, which declined by $361 million, including the impact of payoffs and normal amortization, and all other commercial categories net decreased as we continue to drive optimization towards the highest returns.

轉向幻燈片 8。正如我所指出的，平均貸款餘額環比增長，同比增長 2%。我們預計未來貸款成長的步伐將在 2024 年加快。本季商業貸款總額增加 1.25 億美元，其中分銷融資增加 2.25 億美元，受益於正常季節性，因為製造商出貨量因庫存增加而增加。冬季產品。汽車平面圖增加了 3.59 億美元，CRE 餘額減少了 3.61 億美元，其中包括支付和正常攤銷的影響，隨著我們繼續推動優化以獲得最高回報，所有其他商業類別淨額減少。

In Consumer, growth was led by residential mortgage, which increased by $295 million and RV/Marine, which increased by $121 million, while auto loan balances declined for the quarter.

在消費者領域，住宅抵押貸款增加了 2.95 億美元，房車/船舶貸款增加了 1.21 億美元，而本季汽車貸款餘額下降，帶動了成長。

Turning to Slide 9, as noted, we continued to gather deposits consistently in the fourth quarter. Average deposits increased by $1.5 billion or 1% from the prior quarter.

轉向投影片 9，如前所述，我們在第四季繼續持續吸收存款。平均存款較上一季增加 15 億美元，成長 1%。

Turning to Slide 10. Growth was maintained each month throughout the fourth quarter, continuing the recent trend. Total cumulative deposit beta ended the year at 41%, in line with our expectations and reflecting the decelerating rate of change we would expect at this point in the rate cycle. As we've noted in the past, where beta ultimately tops out will be a function of the end game for the rate cycle in terms of the level and timing of the peak and the duration of any extended pause before a decrease.

轉向投影片 10。整個第四季每個月都保持成長，延續了近期的趨勢。截至年底，累計存款貝塔總額為 41%，符合我們的預期，並反映了我們在利率週期的此時點預期的變化速度正在放緩。正如我們過去所指出的，貝塔最終達到頂峰的位置將取決於利率週期最終遊戲的函數，即峰值的水平和時間以及下降之前任何延長暫停的持續時間。

Given market expectations for rate cuts to start sometime in 2024, our current outlook for deposit beta remains unchanged, trending a few percentage points higher and then beginning to revert and fall, if and when we see rate cuts from the Fed. When interest rate cuts commence, we expect to manage betas on the way down with the same discipline as we have during the increasing rate cycle.

鑑於市場預期將於 2024 年某個時候開始降息，我們目前對存款貝塔值的展望保持不變，趨勢是上升幾個百分點，然後如果我們看到聯準會降息，就會開始恢復和下降。當降息開始時，我們預期會以與升息週期相同的原則來管理降息過程中的貝塔值。

Turning to Slide 11. Noninterest-bearing mix shift continues to track closely to our forecast with deceleration of sequential changes. The noninterest-bearing percentage decreased by 80 basis points from the third quarter and we continue to expect this mix shift to moderate and stabilize during 2024.

轉向投影片 11。無息組合變化繼續密切追蹤我們的預測，且連續變化放緩。無息百分比較第三季下降 80 個基點，我們繼續預期這種組合轉變將在 2024 年放緩並趨於穩定。

On to Slide 12. For the quarter, net interest income decreased by $52 million or 3.8% to $1.327 billion. Net interest margin declined sequentially to 3.07% in line with our forecast. Cumulatively over the cycle, we have benefited from our asset sensitivity and the expansion of margins with net interest revenues growing at an 8% CAGR over the past 2 years.

請參閱投影片 12。本季淨利息收入減少 5,200 萬美元，即 3.8%，至 13.27 億美元。淨利差較上季下降至 3.07%，符合我們的預測。在整個週期中，我們受益於我們的資產敏感性和利潤率的擴大，淨利息收入在過去兩年以 8% 的複合年增長率增長。

Reconciling the change in NIM from Q3, we saw a decrease of 13 basis points. This was primarily due to lower spread net of free funds, which accounted for 9 basis points, along with a 2-basis-point negative impact from lower FHLB stock dividends and a 2-basis-point reduction from hedging.

與第三季相比，NIM 的變化得到了調整，我們看到下降了 13 個基點。這主要是由於自由資金淨利差較低（佔 9 個基點），以及 FHLB 股票股利減少和避險減少 2 個基點帶來的 2 個基點的負面影響。

Turning to Slide 13. Let me share a few added thoughts around the fixed rate loan repricing opportunity that will benefit us over the moderate term. The construct of our balance sheet is approximately half fully variable rate. 10% in indirect auto, which is a shorter approximately 2-year average life, and 10% in arms with a 4-year average life. The remainder of approximately 30% is longer average life fixed rate.

轉向幻燈片 13。讓我分享一些關於固定利率貸款重新定價機會的補充想法，這將在中期使我們受益。我們的資產負債表的結構大約是完全可變利率的一半。間接汽車為 10%，平均壽命較短，約 2 年；武器為 10%，平均壽命為 4 年。剩餘的大約30%是較長的平均壽命固定利率。

We have seen notable increases in fixed asset portfolio yields thus far in the rate cycle. Even as the forward curve forecasts lower short-term rates, many of our fixed rate loan portfolios retain substantial upside repricing opportunity for some time to come. We forecast approximately $13 billion to $15 billion of fixed rate loan repricing opportunity in 2024 with an estimated yield benefit of approximately 350 basis points.

迄今為止，我們已經看到利率週期中固定資產投資組合報酬率顯著上升。即使遠期曲線預測短期利率較低，我們的許多固定利率貸款組合在未來一段時間內仍保留大量上行重新定價機會。我們預測 2024 年固定利率貸款重新定價機會約為 130 億至 150 億美元，預計收益率收益約為 350 個基點。

Slide 14 provides the drivers of our spread revenue growth. As a reminder, we continue to analyze and develop action plans for a wide range of potential economic and interest rate scenarios. The basis of our planning and guidance continues to be a central set of those scenarios that is bounded on the lower end by a scenario which includes 5 rate cuts in 2024. The higher scenario assumes rates stay higher for longer and tracks closely with the Fed's dot plot from year-end. This scenario assumes 3 cuts in 2024.

投影片 14 提供了我們價差收入成長的驅動因素。謹此提醒，我們將繼續針對各種潛在的經濟和利率情境分析和製定行動計畫。我們的規劃和指導的基礎仍然是這些情景的核心集合，該情景的下限受到包括2024 年5 次降息在內的情景的限制。較高的情景假設利率在較長時間內保持較高水平，並與聯準會的利率密切相關情節從年底開始。此情境假設 2024 年將削減 3 次。

We continue to be focused on managing net interest margin in a tight corridor. Should the lower rate scenario play out and we see rate cuts as early as March that will likely result in a margin over the course of the year within a range near the level we saw in the fourth quarter. This would equate to a net interest margin between 3% and 3.1% for each quarter of 2024. If the higher for longer scenario comes to pass, we expect the margin to expand and at a level that is up to 10 basis points above that.

我們繼續專注於在狹窄的走廊內管理淨利差。如果較低利率的情況出現，我們最早會在 3 月看到降息，那麼全年的利潤率可能會接近第四季度的水平。這相當於 2024 年每季的淨利差在 3% 至 3.1% 之間。如果長期較高的情境成為現實，我們預期淨利差將擴大，最高可高出 10 個基點。

As we saw in December, the outlook for longer-term interest rates also moved lower significantly. There were a number of benefits from this lower market rate outlook. First, it resulted in higher capital levels, given AOCI accretion, which supports our accelerated loan growth outlook now.

正如我們在 12 月看到的那樣，長期利率前景也大幅下調。較低的市場利率前景有許多好處。首先，鑑於 AOCI 的增加，它導致了更高的資本水平，這支持了我們目前貸款加速成長的前景。

Second, it provides for easing deposit competition over time. Third, it provides credit support for borrowers with the potential for locking in lower long-term rates. However, the rate outlook is incrementally more challenging for full year spread revenue than the levels we had seen underlying our guidance in December. None of these items, including the forecasted pace of loan growth, we now expect net interest income on a dollar basis to trough in the first quarter before expanding sequentially from that level over the course of the year.

其次，隨著時間的推移，它可以緩解存款競爭。第三，它為借款人提供信貸支持，並有可能鎖定較低的長期利率。然而，全年利差收入的利率前景比我們在 12 月的指引中看到的水平更具挑戰性。這些項目，包括貸款成長的預測速度，我們現在預計以美元計算的淨利息收入將在第一季觸底，然後在全年中從該水準依次擴大。

Turning to Slide 15. Our contingent and available liquidity continues to be robust at $93 billion and has grown quarter-over-quarter. At quarter end, we continue to benefit from a diverse and highly granular deposit base with 70% insured deposits. Our pool of available liquidity represented 206% of total uninsured deposits appear leading coverage.

轉向投影片 15。我們的或有流動性和可用流動性繼續保持強勁，達到 930 億美元，並且逐季增長。到季度末，我們繼續受益於多元化且高度精細的存款基礎，其中 70% 的保險存款。我們的可用流動性池佔未保險存款總額的 206%，似乎覆蓋率領先。

Turning to Slide 16. Our level of cash and securities at year-end increased as we've begun to reinvest portfolio cash flows during the fourth quarter. This investment strategy is consistent with our approach to continue to manage the unhedged duration of the portfolio lower over time. We have reduced overall hedge duration of the portfolio from 4.1 years to 3.7 years over the past 18 months.

轉向投影片 16。隨著我們在第四季開始對投資組合現金流進行再投資，我們年末的現金和證券水準有所增加。這種投資策略與我們繼續管理投資組合的未對沖久期的方法是一致的，隨著時間的推移，投資組合的未對沖久期會降低。過去 18 個月，我們將投資組合的整體對沖久期從 4.1 年減少至 3.7 年。

Turning to Slide 17. We we've updated our forecast for the recapture of AOCI. As of year-end, we've recaptured 26% of total AOCI from the peak level at September 30. Using market rates at year-end we would recapture an estimated incremental 44% of AOCI over the next 3 years.

轉向投影片 17。我們更新了奪回 AOCI 的預測。截至年底，我們已從 9 月 30 日的峰值水準重新奪回了 AOCI 總額的 26%。使用年底的市場利率，我們將在未來 3 年內重新奪回 AOCI 增量的 44%。

Turning to Slide 18. We continue to be dynamic in positioning our hedging program. As the rate outlook changed over the course of the fourth quarter, we focused our objective incrementally on the protection of NIM in down rate scenarios and actively reduced instruments that were intended to protect capital in up-rate scenarios. As we announced in late December, we terminated the pay-fixed swaptions program as our assessment of the probability for substantial uprate moves decreased. Over the course of Q2 through Q4, this program worked as intended, providing significant protection against possible tail risk up-rate moves with a modest overall cost for that insurance.

轉向幻燈片 18。我們繼續積極調整我們的對沖計劃。隨著第四季利率前景的變化，我們逐漸將目標集中在利率下調保護淨利差，並積極減少旨在保護利率上漲情況下資本的工具。正如我們在 12 月底宣布的那樣，由於我們對大幅升息可能性的評估下降，我們終止了固定報酬掉期選擇權計劃。從第二季度到第四季度，該計劃按預期發揮作用，為可能的尾部風險上調提供了重要的保護，同時保險的總體成本適中。

Additionally, during the quarter, we added to our down rate NIM protection strategies, adding $2.1 billion of forward starting received fixed swaps and adding $1 billion of floor spreads. We exited $2 billion of collars, which were near expiration. Our objective with respect to our downgrade hedging activities remains unchanged to support the management of net interest margin in a tighter range as possible.

此外，在本季度，我們增加了降息淨利差保護策略，增加了 21 億美元的遠期起始固定掉期，並增加了 10 億美元的底價利差。我們退出了 20 億美元的項圈，這些項圈即將到期。我們降級對沖活動的目標保持不變，以支持盡可能收緊淨利差的管理。

Moving on to Slide 19. Our fee growth strategies remain centered on 3 key areas: capital markets, payments and wealth management. Note this quarter in our earnings materials we've updated the presentation of our noninterest income categories in order to more clearly highlight our strategic areas of focus and more closely align to the way we manage the business.

繼續看投影片 19。我們的費用成長策略仍集中在 3 個關鍵領域：資本市場、支付和財富管理。請注意，本季度我們的收益資料中更新了非利息收入類別的表述，以便更清楚地突出我們的策略重點領域，並更緊密地配合我們管理業務的方式。

Slide 35 in the appendix provides further detail on the components of each line item. These 3 key focus areas for fee growth collectively represents 63% of total noninterest income. We're seeing positive underlying growth in each of these areas. In Capital Markets, we're pleased that revenues expanded sequentially. Both advisory and core bank capital market products grew in the quarter. Our outlook is constructive for 2024, and we expect capital markets to remain a key driver for fee revenue growth over the medium term.

附錄中的投影片 35 提供了有關每個行項目組成部分的更多詳細資訊。這 3 個費用成長的關鍵領域合計佔非利息收入總額的 63%。我們在每個領域都看到了積極的潛在成長。在資本市場，我們很高興收入持續成長。本季諮詢和核心銀行資本市場產品均有所成長。我們對 2024 年的前景持建設性態度，預計資本市場在中期內仍將是手續費收入成長的關鍵驅動力。

Payments and cash management revenue includes debit and credit card revenues, along with treasury management and merchant processing. Our payments opportunity is substantial, reflecting 31% of total fee revenues today, with the potential for significant growth over time. Wealth and asset management revenue has benefited from the realignment earlier this year, which brought together our Private Bank and retail advisory businesses under one umbrella. Our advisory penetration rate of the customer base continues to increase as wealth advisory households have grown 11% year-over-year and assets under management are up 16% from a year ago.

支付和現金管理收入包括金融卡和信用卡收入，以及財務管理和商家處理收入。我們的支付機會巨大，佔當今總費用收入的 31%，隨著時間的推移，還有顯著成長的潛力。財富和資產管理收入受益於今年稍早的重組，該重組將我們的私人銀行和零售諮詢業務整合在一起。我們的諮詢客戶群滲透率持續提升，財富諮詢戶數較去年同期成長11%，管理資產較去年同期成長16%。

Moving on to Slide 20. On an overall level, GAAP noninterest income decreased $104 million to $405 million for the fourth quarter. Excluding the mark-to-market on the pay fix swaptions and the CRT premium, fees increased by $5 million quarter-over-quarter.

轉到投影片 20。總體而言，第四季 GAAP 非利息收入減少了 1.04 億美元，至 4.05 億美元。不包括以市值計價的薪酬固定掉期選擇權和 CRT 溢價，費用較上季增加 500 萬美元。

Moving on to Slide 21 on expenses. GAAP noninterest expense increased by $258 million and underlying core expenses increased by $47 million. As I mentioned, we incurred $226 million of notable item expenses related primarily to the FDIC deposit insurance fund special assessment during the quarter. It also included the last portion of costs related to our staffing efficiency program and corporate real estate consolidations. Excluding these items, core expense included higher personnel and professional services, driven by seasonally higher benefits expense incentives as well as consulting expenses.

前往關於費用的幻燈片 21。 GAAP 非利息支出增加了 2.58 億美元，基本核心支出增加了 4,700 萬美元。正如我所提到的，本季我們發生了 2.26 億美元的顯著項目費用，主要與 FDIC 存款保險基金特別評估相關。它還包括與我們的員工效率計劃和公司房地產整合相關的最後一部分成本。不包括這些項目，核心費用包括更高的人員和專業服務，這是由季節性較高的福利費用激勵以及諮詢費用推動的。

The level of expenses we saw in the fourth quarter is largely consistent with the dollar amount we expect quarterly over the course of 2024. This is inclusive of the investments we've discussed previously as well as sustained efficiencies we are driving across the company.

我們在第四季度看到的支出水準與我們預期的 2024 年季度支出水準基本一致。這包括我們之前討論過的投資以及我們在整個公司推動的持續效率。

Slide 22 recaps our capital position. Reported common equity Tier 1 increased to 10.3% and has increased sequentially for 5 quarters. Our adjusted CET1 ratio, inclusive of AOCI, was 8.6%. This metric increased 58 basis points compared to the prior quarter, driven by adjusted earnings net of dividends as well as the benefit from the credit risk transfer transaction we announced in December, which more than offset the impact from the FDIC special assessment.

投影片 22 回顧了我們的資本狀況。報告的一級普通股權益增加至 10.3%，並已連續 5 個季度增加。我們調整後的 CET1 比率（包括 AOCI）為 8.6%。受調整後扣除股息的收益以及我們 12 月宣布的信用風險轉移交易帶來的收益推動，該指標較上一季度增長了 58 個基點，這遠遠抵消了 FDIC 特別評估的影響。

We also saw a significant benefit from AOCI recapture given the move in rates during the quarter. Our capital management strategy remains focused on driving capital ratios higher while maintaining our top priority to fund high-return loan growth. We intend to drive adjusted CET1 inclusive of AOCI into our operating range of 9% to 10%.

鑑於本季費率的變動，我們也看到了 AOCI 重新奪回帶來的顯著好處。我們的資本管理策略仍專注於提高資本比率，同時保持為高回報貸款成長提供資金的首要任務。我們打算將調整後的 CET1（包括 AOCI）納入我們 9% 至 10% 的營運範圍。

On Slide 23, a credit quality continues to perform very well and with normalization of metrics consistent with our expectations. Net charge-offs were 31 basis points for the quarter. This was higher than Q3 by 7 basis points and resulted in full year net charge-offs of 23 basis points. This outcome was aligned with our outlook for full year net charge-offs between 20 and 30 basis points at the low end of our target through the cycle range for net charge-offs of 25 to 45 basis points.

在投影片 23 上，信用品質持續表現良好，指標標準化符合我們的預期。本季淨沖銷為 31 個基點。這比第三季高 7 個基點，導致全年淨沖銷 23 個基點。這結果與我們對全年淨沖銷在 25 至 45 個基點週期範圍內的目標低端 20 至 30 個基點之間的預期一致。

Gross charge-offs in the fourth quarter were relatively flat with the overall change in net charge-offs, largely a result of lower recoveries. Given ongoing normalization, nonperforming assets increased from the previous quarter, while remaining below the prior 2021 level. The criticized asset ratio increased quarter-over-quarter, with risk rating changes within commercial real estate being the largest component. Allowance for credit losses was higher by 1-basis-point to 1.97% of total loans, and our ACL coverage ratio continues to be among the top quartile in the peer group.

第四季的總沖銷與淨沖銷的整體變化相對持平，這主要是由於回收率較低。鑑於持續的正常化，不良資產較上一季增加，但仍低於 2021 年之前的水準。受詬病的資產比率環比上升，其中商業房地產風險評級變化是最大的組成部分。信用損失準備金佔貸款總額的1.97%，較前一年提高1個基點，ACL覆蓋率持續位居同業前四分之一。

Let's turn to our outlook for 2024. As we mentioned, we expect to drive accelerated loan growth between 3% and 5% for the full year. Deposits are likewise expected to continue their solid trend of growth between 2% and 4%. As a result of the loan growth and margin outlook I shared earlier, net interest income for the full year is expected to range between down 2% to up 2%. The pace of loan growth, coupled with the rate scenario we see actually play out will drive the range of spread revenue. If the higher for longer rate scenario plays out and loan growth tracks to the top end of our range, we expect net interest income to grow by approximately 2%. If the lower scenario comes to fruition and loan growth tracks to the lower end of our growth range, we could see spread revenue declining 2 percentage points. In both scenarios, I expect net interest income to trough in the first quarter before expanding throughout 2024 from that level.

讓我們展望 2024 年。正如我們所提到的，我們預計全年貸款將加速成長 3% 至 5%。存款同樣預計將持續維持 2% 至 4% 之間的穩健成長趨勢。根據我先前分享的貸款成長和利潤率展望，預計全年淨利息收入將下降 2% 至上升 2%。貸款成長的速度，加上我們實際看到的利率情景，將推動利差收入的範圍。如果長期利率較高的情況出現且貸款成長達到我們範圍的上限，我們預計淨利息收入將成長約 2%。如果較低的情境成為現實，而貸款成長追蹤我們成長範圍的下限，我們可能會看到利差收入下降 2 個百分點。在這兩種情況下，我預計淨利息收入將在第一季觸底，然後在 2024 年全年從該水準開始擴張。

Noninterest income on a core underlying basis is expected to increase between 5% and 7%. The baseline of core excludes notable items, the mark-to-market impact from the pay fix swaption program as well as CRT impacts. Fee revenue growth is expected to be driven primarily by capital markets, payments and wealth management. Core expenses are expected to increase by 4.5%. This level reflects the finalization of our budget and includes the additional loan growth we discussed earlier, which will have some incremental compensation expense tied to production. Expenses could fluctuate depending on the level of revenue-driven compensation, primarily associated with our fee-based revenues, including capital markets. The tax rate is expected to be approximately 19% for the full year. We expect net charge-offs for the full year to be between 25 and 35 basis points.

核心基礎非利息收入預計將成長 5% 至 7%。核心基準不包括值得注意的項目、薪酬固定互換計劃的按市值計價的影響以及 CRT 的影響。預計手續費收入成長將主要由資本市場、支付和財富管理推動。核心費用預計增加4.5%。這一水平反映了我們預算的最終確定，包括我們之前討論的額外貸款成長，這將產生一些與生產相關的增量補償費用。費用可能會根據收入驅動的薪酬水準而波動，主要與我們的收費收入（包括資本市場）相關。預計全年稅率約為19%。我們預計全年淨沖銷將在 25 至 35 個基點之間。

With that, we'll conclude our prepared remarks and move to questions and answers. Tim, over to you.

至此，我們將結束準備好的發言並進入問答環節。提姆，交給你了。

Thanks, Zach. Operator, we will now take questions. We ask that as a courtesy to your peers, each person ask only 1 question and 1 related follow-up. And then if that person has additional questions, he or she can add themselves back into the queue. Thank you.

謝謝，扎克。接線員，我們現在開始提問。出於對同事的禮貌，我們要求每個人只提出 1 個問題和 1 個相關的後續問題。然後，如果該人還有其他問題，他或她可以將自己重新加入隊列。謝謝。

(Operator Instructions) Our first question today is coming from the line of Manan Gosalia with Morgan Stanley.

（操作員說明）我們今天的第一個問題來自摩根士丹利的 Manan Gosalia。

I wanted to start off on the expense guide change. I know it's a small change from 4% to 4.5%, but it is higher than some of your peers are guiding to -- for 2024. So just hoping you could elaborate more on what's going into that? And also if there is a similar flex on the expense side as there is on the revenues. So for instance, if you get to your down 2% NII number with more rate cuts. Does that drive a little bit of flex in the expense side as well?

我想從費用指南的改變開始。我知道這只是從 4% 到 4.5% 的一個小變化，但它比你們的一些同行所指導的 2024 年要高。所以只是希望你們能詳細說明其中的內容嗎？此外，費用方面是否存在與收入方麵類似的彈性。舉例來說，如果您透過更多降息達到下降 2% 的 NII 數字。這是否也會在費用上帶來一些彈性？

Great question, Manan, this is Zach, I'll take that. We -- the guidance that we had given back in October and in December was really primarily designed to be an early view for you. So you can get an insight into some of the key decisions we're making. And for us, we're really be able to just discuss that in detail. That was the approximate 4% we discussed before. The finalization of our budget reflects the additional loan growth that we've now added to the plan and associated -- fee revenues as well is that what represents the difference up to 4.5%. To give you a sense, it's about $5 million a quarter, so relatively small. I think you are -- and the underlying drivers of that are unchanged from what we have discussed before.

很好的問題，馬南，我是紮克，我接受。我們在 10 月和 12 月給出的指導實際上主要是為您提供早期視圖。這樣您就可以深入了解我們正在做出的一些關鍵決策。對我們來說，我們確實可以詳細討論這個問題。這就是我們之前討論過的大約 4%。我們預算的最終確定反映了我們現在已添加到計劃中的額外貸款增長以及相關的費用收入，這代表了高達 4.5% 的差異。給您一個感覺，每個季度約為 500 萬美元，相對較小。我認為你是——而且其根本驅動因素與我們之前討論的內容沒有變化。

We'll continue to drive significant efficiencies in the core based on expenses with a number of programs. We'll continue to invest in our strategic growth initiatives. We'll execute on the incremental build of capabilities and automation and data to get ahead of coming regulations and we'll execute on the new -- really attractive commercial growth opportunities we've discussed before. All of that's included in that number and no change to our expectation as well about reducing that growth rate as we go into 2024 -- 2025, excuse me, back to more normalized levels.

我們將繼續根據許多計劃的支出來顯著提高核心效率。我們將繼續投資於我們的策略性成長計劃。我們將執行能力、自動化和數據的增量構建，以領先即將出台的法規，並將執行我們之前討論過的新的、真正有吸引力的商業成長機會。所有這些都包含在這個數字中，而且我們對進入 2024 年至 2025 年時降低成長率的預期也沒有改變，對不起，回到更正常化的水平。

As it relates to your question in terms of the kind of marginal sensitivity. Certainly, that will be just under (inaudible). I think the expense on guidance is generally calibrated to so the middle of the ranges we've got in growth in revenues. And so we -- some potential upside of expenses if all of the revenues hit the high end and likewise some potential opportunity if the revenues were below (inaudible).

因為它與你的問題有關邊際敏感度。當然，這將略低於（聽不清楚）。我認為指導費用通常被調整到我們收入成長範圍的中間。因此，如果所有收入都達到高端，那麼我們可能會出現一些潛在的費用上漲，如果收入低於（聽不清楚），同樣也會有一些潛在的機會。

Great. And my next question was on the deposit franchise. You have a pretty strong core consumer deposit franchise. And some of your peers have highlighted that there's still some lagged upward repricing in deposits there. So can you talk about how you expect those deposits to behave over the next few quarters and then as the Fed begins to cut rates?

偉大的。我的下一個問題是關於存款特許經營權。你們擁有相當強大的核心消費者存款專營權。你們的一些同行強調，那裡的存款重新定價仍然存在一些滯後的情況。那麼，您能否談談您預計這些存款在未來幾季以及聯準會開始降息時的表現如何？

This is Zach. I'll take that one again. What we've been seeing in the marketplace broadly with respect to deposit cost and deposit beta, both -- across both consumer and commercial is the -- as we're going to expect a deceleration of the sequential changes and very much for us trending highly aligned to our expectations. As well, I will tell you that we are beginning to see in the marketplace a fairly constructive initial signs of firms preparing for what will likely be soon a down-rate environment with a shortening, for example, of time deposit terms with a change of promotional terms on the money market and select testing of different price points for unique segments and unique geographies, all which is what you'd expect to presage will ultimately be a series of down beta moves.

這是札克。我會再拿那個。我們在市場上廣泛看到的關於存款成本和存款貝塔的情況，無論是消費者還是商業領域，都是如此，因為我們預計連續變化將會減速，這對我們來說非常重要與我們的期望高度一致。另外，我會告訴你，我們開始在市場上看到相當有建設性的初步跡象，表明公司正在為可能很快出現的利率下調環境做準備，例如縮短定期存款期限，並改變貨幣市場上的促銷條款，並針對獨特的細分市場和獨特的地區選擇不同價格點的測試，所有這些都預示著最終將是一系列下調貝塔值的舉措。

With respect to your specific question on consumer and sort of build that trend. I think the answer is yes. What we have been saying all along is that deposit costs and beta will continue to trend out of decelerating rate through the pause period until such time as there is a rate reduction. And so that's our expectation as well. I'll say, the go-to-market pricing is generally pretty consistent, if not testing somewhat lower price points, but there's, of course, sort of an embedded momentum of somewhat upward bias in terms of pricing for at least over the quarter here, and then we'll see. Do we get a rate cut in March, somewhat aggressive in our view as possible, which case down rate begins very quickly. The rate environment holds out with the pause until September, in which case we'll see kind of a longer period of drift.

關於您關於消費者的具體問題以及建立這種趨勢的方式。我認為答案是肯定的。我們一直在說的是，在暫停期間，存款成本和貝塔值將繼續呈現減速趨勢，直到利率下調。這也是我們的期望。我想說的是，即使沒有測試較低的價格點，上市定價通常也相當一致，但當然，至少在本季度的定價方面存在某種內在的向上偏差的勢頭在這裡，然後我們會看到。我們是否會在三月降息，我們認為降息會盡可能激進，在這種情況下，降息會很快開始。利率環境會持續到九月份，在這種情況下，我們將看到更長時期的漂移。

Our next question is coming from the line of Erika Najarian with UBS.

我們的下一個問題來自瑞銀集團的 Erika Najarian。

And by the way, whoever wrote that script, the guidance could not be any clearer, so that was great. Just that being said, a few follow-up questions. The loan growth guidance from your peers would imply the macro outlook, which is pretty consensus is indicative of software opportunities and perhaps this is a good chance. Clearly, you've been telling us for the past few years that you've set yourself up differently and you've got yourself up differently to outperform. And maybe go back through those opportunities that I think that the average loan growth number is certainly notable versus peers and perhaps remind us of why Huntington is a particularly unique set of growth opportunity for this year.

順便說一句，無論誰寫了這個腳本，指導都非常清晰，所以這很棒。話雖如此，還有一些後續問題。同業的貸款成長指引將暗示宏觀前景，這是相當一致的，這表明軟體機會，也許這是一個很好的機會。顯然，在過去的幾年裡，您一直在告訴我們，您已經以不同的方式設定自己，並以不同的方式讓自己表現出色。也許回顧一下這些機會，我認為平均貸款成長數字與同業相比肯定是顯著的，也許提醒我們為什麼亨廷頓是今年特別獨特的成長機會。

Erika, this is Steve. I'll start with that because you've asked a broader history. And then Zach can may comment. So first, we do think the discipline on our aggregate moderate-to-low risk appetite, which has been in place now for 14 years, has been a governor. And it has helped us as we've decided what business to pursue and what not to see. With that in mind, we've been very purposeful and strategic about growing these businesses. And you saw at the Investor Day, a mid-teens rate of growth like the specialty banking. So we have a very strong middle market core banking set of capabilities. We have a tremendous amount of small business capabilities and capacity. We have market density in Ohio on small business and we're achieving that now in other states. So the core sort of regional banking franchise performing very, very well.

艾莉卡，這​​是史蒂夫。我將從這個開始，因為您詢問了更廣泛的歷史。然後扎克可以發表評論。因此，首先，我們確實認為對整體中低風險偏好的約束（已經實施了 14 年）一直是調控者。它對我們有幫助，因為我們決定了要從事什麼業務、不該從事什麼業務。考慮到這一點，我們在發展這些業務方面一直非常有目的性和策略性。你在投資者日看到了像專業銀行業務一樣的十幾歲左右的增長率。因此，我們擁有非常強大的中間市場核心銀行能力。我們擁有大量的小型企業能力和能力。我們在俄亥俄州的小型企業市場密度很大，我們現在在其他州也實現了這一目標。因此，區域銀行特許經營的核心類型表現非常非常好。

And you add to that the specialties that have been put in place, just 3 new ones last year, which by the way, they're all off to terrific starts. And then the expansion we've been in like Dallas and Charlotte for a decade or more, when we see opportunities, we may pursue them. An example of that is in the Carolinas, where we believe we've got a fanatic group of new colleagues coming to us with teams. These are some just outstanding people that we've been following for years and it all came together. We were investing, others were not, and there was some moment to be dynamic.

再加上已經到位的專業，去年只有 3 個新的專業，順便說一句，它們都有一個好的開始。然後，我們已經在達拉斯和夏洛特進行了十年或更長時間的擴張，當我們看到機會時，我們可能會追求它們。卡羅來納州就是一個例子，我們相信那裡有一群狂熱的新同事帶著團隊來到我們這裡。這些都是我們多年來一直關注的傑出人物，所有這些都聚集在一起。我們在投資，其他人沒有，而且有一些時刻是充滿活力的。

In addition to that, we still have opportunities in the TCF markets. We're doing incredibly well in Michigan. But what I would say we're early stage still in Chicago, the Twin Cities and Denver. And we like those markets, each of those markets. So we believe with the investments we made in specialty banking, the core regional bank performing well with opportunity. We've got lots of growth of potential in the next few years. And that's with the -- I didn't talk about the asset finance business. Our distribution finance business is the horse they had a phenomenal year last year. Our auto business is one of our best businesses. We've got one of our really terrific teams in that area. Floorplan has done very, very well in terms of its growth as well.

除此之外，我們在TCF市場上仍有機會。我們在密西根州的表現非常好。但我想說的是，我們在芝加哥、雙子城和丹佛仍處於早期階段。我們喜歡這些市場，每一個市場。因此，我們相信，透過對專業銀行業務的投資，核心區域銀行將表現良好並抓住機會。未來幾年我們有很大的成長潛力。這就是——我沒有談論資產金融業務。我們的分銷金融業務是他們去年表現出色的馬。我們的汽車業務是我們最好的業務之一。我們在該領域擁有一支非常出色的團隊。 Floorplan 在成長方面也做得非常非常好。

So lots of growth options, the equipment finance more broadly, so a lot of growth options in that, and we're seeing that through the cycle. And so we believe we're poised to outperform and have budgeted and expect our colleagues to do so in the coming years.

所以有很多成長選擇，更廣泛的設備融資，所以有很多成長選擇，我們在整個週期中都看到了這一點。因此，我們相信我們將表現出色，並已製定預算，並期望我們的同事在未來幾年也能這樣做。

This is Zach. I just want to talk on two things. First of all, thanks for the compliment in terms of the guidance and all the credit to our really terrific Investor Relations team. But just -- one thing I would add on top of that is we were pretty purposeful about staying on a growth splitting across the board. And importantly, in terms of the financial resources and investment that we're putting against our core growth opportunities. And recognize that the net outcome of that, including some of the other things that we want to do in terms of data and automation capabilities would result in an overall expense growth. It was higher than we would want to have relative to revenue growth, higher than we would typically target and it certainly was something we discussed at length, as you know.

這是札克。我只想談兩件事。首先，感謝您對我們出色的投資者關係團隊的指導和所有的讚美。但我要補充的一件事是，我們非常有目的地保持全面的成長分化。重要的是，就我們針對核心成長機會所投入的財務資源和投資而言。並認識到其最終結果，包括我們在數據和自動化能力方面想做的一些其他事情，將導致整體費用增長。相對於收入成長，它高於我們希望的水平，高於我們通常的目標，正如你所知，這當然是我們詳細討論的內容。

But we took that view purposely and recognized it was contrarian because in our view the long-term earnings potential of staying in that growth posture is so much more advantageous than worry to have really significantly ratcheted back investments and expenses. And so a bit of short-term challenge with respect to operating leverage will yield very significantly better earnings growth trajectory through the course of 2024 and 2025 earnings outlook looks exceptionally strong as well. So just to tack on to Steve's point, I think the whole system is really working and that was just particularly (inaudible).

但我們有意採取這種觀點，並認識到這是逆向思維，因為在我們看來，維持這種成長態勢的長期獲利潛力比擔心投資和支出大幅縮減要有利得多。因此，營運槓桿方面的一些短期挑戰將在 2024 年和 2025 年期間產生非常明顯更好的獲利成長軌跡，並且 2025 年的獲利前景看起來也異常強勁。因此，為了強調史蒂夫的觀點，我認為整個系統確實在運作，而且特別（聽不清楚）。

For sure. And you had the capital. So it all makes sense. And just a follow-up question. Again, so many moving pieces in terms of the rate outlook. But Zach, if maybe update us on your rate sensitivity as of 12/31 (inaudible) that you may -- in terms of your balance sheet management? And also, if you could give us a little bit more detail about what you mean in terms of managing the betas on the way down at a similar discipline. And I wonder if you could give us maybe your expectations on deposit beta for the first 100 basis points of rate cut.

一定。而且你有資本。所以這一切都是有道理的。只是一個後續問題。同樣，就利率前景而言，有很多令人感動的事情。但是紮克，如果您可以向我們更新您截至 12 月 31 日的利率敏感性（聽不清楚），您可能會 - 在您的資產負債表管理方面？另外，您是否可以向我們提供更多關於在類似學科中管理測試版方面的含義的詳細資訊。我想知道您是否可以告訴我們您對降息前 100 個基點的存款貝塔值的預期。

Sure. Great questions, both. There's a lot in there to unpack, so we address those both. As it relates to asset sensitivity for December, I expect it to be roughly consistent with the asset sensitivity we saw that was reported in the end of October, you see that come out in the Q -- I'm sorry, the K. As we've discussed over time, the business is naturally asset sensitive. And so clearly, on the way up with the interest rate cycle benefited very significantly in terms of margin expansion in revenue growth.

當然。兩個問題都很好。其中有很多東西需要解開，所以我們解決這兩個問題。由於它與 12 月的資產敏感性相關，我預計它與我們在 10 月底報告的資產敏感性大致一致，您會看到 Q 中出現的結果 - 對不起，K。我們長期以來一直在討論，業務自然是資產敏感的。顯然，在利率週期上升的過程中，收入成長的利潤率擴張受益匪淺。

I will note as well, something just important to assess as you're thinking about asset sensitivity is in our securities portfolio. As you know, we hedged a large portion of available-for-sale securities, which has benefited significantly in terms of yields rising higher protecting capital in the asset sensitivity metric in the [Dow 100 rapid] scenario, for example, it represents about a percentage point of additional sensitivity from those swaps. Those swaps will roll off over the course of the next 12 to 18 months. And most of that impact on sensitivity will begin to ramp off starting in the second half of 2014 and continuing on for about a 12-month period thereafter.

我還要指出，當您考慮資產敏感性時，需要評估的重要因素是我們的證券投資組合。如您所知，我們對很大一部分可供出售證券進行了對沖，這些證券在收益率上升方面顯著受益，在[道指100 快速指數]場景中的資產敏感性指標中保護資本，例如，它代表了大約這些掉期帶來的額外敏感性的百分點。這些掉期將在未來 12 至 18 個月內逐步減少。對敏感度的大部分影響將從 2014 年下半年開始逐漸減弱，並持續此後約 12 個月的時間。

The other thing I'll just say as an important point is those sensitivity metrics are pretty academic and not standardized across the industry. With lots of assumptions of the beta being the most significant, but also whether those analyses are ramped on top of the forward curve or whether they're just from a start point. Ours is a ramp on top of the forward curve. So certainly, if I just report to assess those assumptions pretty carefully in comparing those metrics across firms.

我要說的另一件事是，這些敏感度指標非常學術化，並且在整個行業中並未標準化。許多假設貝塔值是最重要的，而且還考慮這些分析是否是在遠期曲線的頂部，還是只是從一個起點開始。我們的斜坡位於前進曲線的頂部。所以當然，如果我只是報告在比較不同公司的這些指標時非常仔細地評估這些假設。

Back to -- so in terms of our balance sheet management posture, incrementally from here, I see the opportunity to add downside rate reduction hedges. Our hedging strategy is incrementally shifting from a focus on capital production to a focus on down rate protection, as we discussed in the prepared remarks. And we added some of that in Q4, I suspect we'll continue to be incrementally adding into those down rate of protection strategies over time, which would gradually reduce downside asset sensitivity.

回到—就我們的資產負債表管理態勢而言，從這裡開始，我看到了增加下行利率削減避險的機會。正如我們在準備好的評論中所討論的那樣，我們的對沖策略正在逐步從關注資本生產轉向關注降息保護。我們在第四季度添加了其中一些內容，我懷疑隨著時間的推移，我們將繼續逐步增加保護策略的下降率，這將逐漸降低資產下行敏感度。

In terms of deposit beta and what we would be expecting for the first X basis points, our -- to give you a sense, in the scenario that I'm looking at where rates in fact, begin to fall in March and then have 5 cuts in them, so it's a little more in your scenario, we would expect to see about a 20% roughly down beta over a 3-quarter period by the end of 2024, would of course, be less than that. If there was an extended pause through sort of the late summertime period. But just to give you a sense of the sensitivity to your question.

就存款貝塔值以及我們對前 X 個基點的預期而言，我們的 - 讓您有一種感覺，在我正在研究的情況下，利率實際上從 3 月份開始下降，然後有 5 個基點削減它們，所以在你的情況下會多一點，我們預計到2024 年底，在3 季度內貝塔值大約會下降20%，當然，會低於這個數字。如果在夏末有一段長時間的停頓。但只是為了讓您了解您的問題的敏感度。

Our next question is from the line of John Pancari with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 John Pancari。

On the capital front, I know your CET1 increased nicely, about 15 basis points to 10% in the quarter -- in the fourth quarter. Just as you look at the trajectory here and your outlook for earnings and capital -- organic capital generation, how are you thinking about potentially ramping up buybacks and capital return overall.

在資本方面，我知道你們的 CET1 成長得很好，第四季成長了大約 15 個基點，達到 10%。正如您看到這裡的軌跡以及您對收益和資本（有機資本產生）的前景一樣，您如何考慮可能增加回購和整體資本回報。

Great question, John. This is Zach. I'll take that one. We're very pleased with the outcomes around the overall action plan we've had with respect to managing capital and our capital priorities throughout the course of 2023 as we talked about actively modulating the pace of loan growth to balance additional loan growth in revenue with also accreting capital on the balance sheet clearly in the fourth quarter benefited significantly from a recapture of AOCI, which allows us now to even yet again, accelerate the pace of loan growth, as we discussed earlier.

好問題，約翰。這是札克。我會接受那個。我們對整個 2023 年資本管理和資本優先事項的整體行動計劃所取得的成果感到非常滿意，因為我們談到了積極調整貸款增長速度，以平衡收入中的額外貸款增長與第四季度資產負債表上的資本增值明顯受益於AOCI 的重新奪回，這使我們現在能夠再次加快貸款成長的步伐，正如我們之前討論的那樣。

And for the foreseeable future, I see us continuing on with that posture driving the most important capital prior we have is to fund higher-term loan growth. And there is a significant opportunity for us to do that, which is the most value-creating decision that's in front of us. And importantly, at 8.6%, our adjusted CET1 is -- it has been rising a lot and want to drive that into the 9% to 10% operating range that we've discussed over time. So I think for the foreseeable future, we'll continue on with that plan. Once we get into the 9% to 10% range with adjusted CET1, we'll reassess our posture with respect to share repurchases.

在可預見的未來，我認為我們將繼續保持這種姿態，推動我們擁有的最重要的資本為長期貸款成長提供資金。我們有一個重要的機會來做到這一點，這是我們面前最能創造價值的決定。重要的是，我們調整後的 CET1 為 8.6%，它已經大幅上升，並希望將其推至我們長期以來討論過的 9% 至 10% 的運行範圍。所以我認為在可預見的未來，我們將繼續執行該計劃。一旦調整後的 CET1 進入 9% 至 10% 的範圍，我們將重新評估我們在股票回購方面的立場。

Over time, share repurchases are a really important point, a part of the value creation model for the company, and I actually expect us to get back to them. And we're going to drive through those outcomes as soon as we possibly can.

隨著時間的推移，股票回購是一個非常重要的點，也是公司價值創造模式的一部分，我實際上希望我們能夠回到它們。我們將盡快實現這些成果。

And John, as Zach shared with you on the third quarter call, we are advancing as if the pending capital requirements are in place. So we're building capital now that will meet those requirements should they be adopted.

約翰，正如扎克在第三季電話會議上與您分享的那樣，我們正在推進，就好像未決的資本要求已經到位一樣。因此，我們現在正在累積資金，如果這些要求被採納，我們將滿足這些要求。

Great. All right. And then also for you, Steve, I guess related to that, maybe if you could just talk about the whole debate around the need for scale as you look longer term at the evolution that's going on right now within the regional banks post these last year's failures and so the regulatory requirements and the need for scale to compete. How do you view the potential for whole bank M&A as a role in Huntington's outlook? And what's the earliest do you think from an industry perspective, not necessarily for Huntington that you think we can actually see a pickup in whole bank M&A given the backdrop in regulators.

偉大的。好的。然後，對於你來說，史蒂夫，我想與此相關，也許你可以談談圍繞規模需求的整個辯論，因為你從長遠來看區域銀行內目前正在發生的演變，發布了去年的報告失敗等監理要求以及規模競爭的需要。您如何看待全銀行併購的潛力在亨廷頓的前景中所扮演的角色？從行業角度來看，您認為最早是什麼時候，對於亨廷頓來說，您認為在監管機構的背景下，我們實際上可以看到整個銀行併購的回升。

Well, that's a series of questions, John. I'll try to answer them, but I may miss on one aspect. This is back up for a moment, you had 3 idiosyncratic banks failed. And you've seen the rest of the industry sort of adjust and adopt and respond very quickly. And the poor strength of the industry, I don't think is in question now. And for us, we believe in having a very focused, disciplined and a broadly diversified set of businesses, and we've been able to build those and achieve that the posture and it has served us very, very well as we've seen in the second half of last year and continuing to this year. So we're very bullish on our ability to organically grow and expect -- and that's our focus. And we'll continue to do that. You may see further announcements from us this year in terms of organic growth moves and I expect that we will continue to be maybe a bit contrarian, but agile, as we continue to advance. We think we have tremendous opportunities already in the business lines that we have.

嗯，這是一系列問題，約翰。我會盡力回答他們，但我可能會錯過一方面。這是暫時的，你有 3 個特殊的銀行倒閉了。您已經看到該行業的其他公司正在快速調整、採用和回應。而這個產業的實力較差，我認為現在不存在問題。對我們來說，我們相信擁有一個非常專注、紀律嚴明和廣泛多元化的業務，我們已經能夠建立這些業務並實現這一目標，它對我們非常非常有幫助，正如我們在去年下半年一直持續到今年。因此，我們非常看好我們的有機成長和預期能力——這就是我們的重點。我們將繼續這樣做。今年，您可能會看到我們在有機成長方面發布的進一步公告，我預計，隨著我們繼續前進，我們將繼續採取可能有點逆向但靈活的方式。我們認為我們現有的業務領域已經擁有巨大的機會。

So in terms of scale, I think the regulatory response is in reaction to those 3 failures is raising questions about how much (inaudible) will the industry -- or banks will benefit from in the industry over time. The expectations have clearly increased as they should. And we are investing in our risk management platform. I think I shared on the third quarter call, for example, we will have much better intraday visibility on deposit flows in the near term as a consequence. There are a series of things like this that we're addressing.

因此，就規模而言，我認為監管機構對這三個失敗的反應引發了人們的疑問：隨著時間的推移，該行業或銀行將從該行業中受益多少（聽不清楚）。人們的期望明顯增加了，這是理所當然的。我們正在投資我們的風險管理平台。例如，我認為我在第三季電話會議上分享過，因此，我們在短期內將對存款流動有更好的盤中可見度。我們正在解決一系列類似的問題。

Now I don't know the -- we've been investing in risk management since I arrived in 2009, so I don't know how we compare -- really compared to other banks. I think we've always viewed the stress test results where we've been top quartile or even leading in terms of the portfolio stretches by the regulators as a barometer. And it looks like that was a very good measure, at least at this point. So we're not anticipating a change in posture at this stage. We don't feel compelled that we have to do something. And yet at the same time, should there be opportunities somewhere in the future, we take a look, but it has to be in a risk-adjusted context that makes sense to us. And I don't see that activity in '24. I think we've got a tremendous amount of core growth to deliver, and we're excited about that.

現在我不知道，自從我 2009 年來到這裡以來，我們一直在風險管理方面進行投資，所以我不知道我們如何與其他銀行進行比較。我認為我們一直將壓力測試結果視為晴雨表，在監管機構的投資組合延伸方面，我們一直處於前四分之一甚至領先地位。看起來這是一個非常好的措施，至少在這一點上是如此。因此，我們預期現階段不會改變立場。我們並不覺得必須做些什麼。但同時，如果未來某個地方有機會，我們會考慮一下，但必須在對我們有意義的風險調整背景下進行。我在 24 年沒有看到這種活動。我認為我們有大量的核心成長需要實現，我們對此感到興奮。

Our next question is from the line of Steven Alexopoulos with JPMorgan.

我們的下一個問題來自摩根大通的 Steven Alexopoulos。

I want to start -- for you Zach, big picture. So historically, a steep yield curve has been a positive catalyst for bank margins and earning. But given how you position the balance sheet, right, with the use of hedges, have you in a sense traded away much of that potential benefit or to have a more stable NIM today?

我想開始——對你來說，扎克，大局觀。從歷史上看，陡峭的殖利率曲線一直是銀行利潤和利潤的積極催化劑。但考慮到你如何透過對沖來定位資產負債表，從某種意義上說，你是否已經放棄了大部分潛在收益，或者今天擁有了更穩定的淨利差？

Great question, Steve. I think the short answer to your question is, no. The steeper yield curve continues to better than us. Obviously, that's -- with that environment would be indicative of funding costs, which are -- which would represent solid margins against where asset yields are.

好問題，史蒂夫。我認為你的問題的簡短答案是：不。更陡峭的殖利率曲線繼續好於我們。顯然，在這種環境下，融資成本將代表相對於資產收益率的堅實利潤。

I think more of this really strange environment with inverted yield curves with a dramatic kind of reduction forecasted pretty quick here. So we'll see how it all plays out. But I think for us, the puts and takes with respect to NIM outlook in the moderate term through 2024. One, we're going to continue to benefit very significantly from fixed asset repricing. We try to provide some incremental clarity about that in the prepared remarks in the presentation. So good to see 50- to 100-basis-point moves in overall portfolio yield in the [TFX] categories, we'll continue to see that benefit us out not only for '24, but into '25 and beyond.

我認為更多的是這種非常奇怪的環境，殖利率曲線倒掛，預計很快就會大幅下降。所以我們將看看這一切如何進行。但我認為，對我們來說，從中期到 2024 年，NIM 前景的看漲期權和看跌期權。第一，我們將繼續從固定資產重新定價中受益匪淺。我們嘗試在簡報中準備好的評論中對此進行一些補充說明。很高興看到 [TFX] 類別的整體投資組合收益率變動 50 到 100 個基點，我們將繼續看到這不僅對 24 年有利，而且對 25 年及以後也有利。

Another thing is for us, as the curve becomes less inverted, we'll see our negative carry from our downgrade hedge protection program reduced the negative carry impact, by the way, in Q4 it was around 17 basis points of drag. We've talked about likely we'll see about 10 bps of that come back to us if you believe the scenario kind of pretty align the forward curve here over the next of 4 quarters. Funding costs, again, in a steeper yield curve environment where short rates have fallen will really start to benefit us in terms of beginning to pivot toward down beta. We're actually executing on down beta to Erika's question earlier. And those things in total, essentially offset for us in our NIM, the variable yield reduction that we'll see if and when the short end comes down.

對我們來說另一件事是，隨著曲線倒掛的程度減少，我們將看到降級對沖保護計劃的負利差減少了負利差影響，順便說一句，第四季度的拖累約為17 個基點。我們已經討論過，如果您認為未來 4 個季度的遠期曲線與這種情況相當一致，我們可能會看到其中大約 10 個基點回到我們身邊。同樣，在短期利率下降的殖利率曲線更陡峭的環境中，融資成本將真正開始使我們受益，因為貝塔係數開始下降。我們實際上正在對埃里卡之前提出的問題進行下測試。這些東西總的來說，基本上抵消了我們的淨利差，即我們將看到短期端下降時我們會看到的可變收益率下降。

So I don't believe that, that Goldilocks scenario of a nice upward sloping yield curve is accretive to margins and be supportive of it. And the goal we've got is the same, to try to really color the NIM here, put a floor under it and really position for upside. And I think the last thing I'd say is kind of getting to your question as well. The modeling that we have done about 2025, so it's been taking a while, it really highlights NIM expansion opportunities, which again is sort of an indication that the upward sloping yield curve is positive.

因此，我不認為，向上傾斜的良好殖利率曲線的金髮姑娘情景會增加利潤並對其產生支持。我們的目標是相同的，就是嘗試真正為 NIM 著色，為它奠定基礎，並真正定位上漲空間。我想我要說的最後一件事也是回答你的問題。我們對 2025 年所做的建模已經花費了一段時間，它確實凸顯了淨利差擴張機會，這再次表明向上傾斜的殖利率曲線是正的。

Okay. That's helpful. Zach, I asked the question because earlier you said if the rates stay higher for longer, your NIM would be about 10 basis points higher in 2024 versus the Fed cutting. But as we move beyond 2025, 2026, there's a clear benefit to the NIM. Are you able to quantify for us like on a longer-term basis, assuming the forward curve played out, we've given the -- what's on and what's rolling off, where the NIM could be long term for Huntington?

好的。這很有幫助。扎克，我問這個問題是因為您之前說過，如果利率保持較高水平的時間更長，您的淨息差在 2024 年將比美聯儲降息高出約 10 個基點。但當我們跨過 2025 年、2026 年時，NIM 會有明顯的好處。您是否能夠為我們進行長期量化，假設遠期曲線已經結束，我們已經給出了正在發生的事情和正在發生的事情，對於亨廷頓來說，NIM 可能是長期的？

Sure. Yes. The point on the higher NIM and the scenario is that higher (inaudible), it's not only a scenario where short-end stays out for longer but also longer-end stays out for longer. And I will note that sort of much of our balance sheet yields that kick off the belly of the curve, 2- to 5-year range. And so we think that's a good point to consider. Look over the longer term, I see north of 3 into the low 3s in terms of NIMs at a sustainable level. Of course, the business mix continues to shift. So I think it's hard to really be precise about that. And we already -- several years out, we'll have to continue to do our modeling. But over the foreseeable future, we see that range of sort of 300 to 310 in the quicker rate reduction scenario, maybe as much as 10 bps higher than that. If rates they are longer through '24. And then I would see another step-up into '25 assuming the yield curve holds generally than sort of (inaudible).

當然。是的。更高的淨利差和場景的要點是更高（聽不清楚），這不僅是短端停留更長時間的場景，而且是長端停留更長時間的場景。我要指出的是，我們的資產負債表收益率中有很大一部分是在 2 至 5 年期曲線的腹部開始的。所以我們認為這是一個值得考慮的好點子。從長遠來看，我認為淨利差處於可持續水平，從 3 到 3 低。當然，業務組合仍在不斷變化。所以我認為很難準確地描述這一點。幾年後，我們將不得不繼續進行建模。但在可預見的未來，在更快降息的情況下，我們看到該範圍約為 300 至 310，可能比該數字高出 10 個基點。如果利率的話，它們會更長到'24。然後，假設殖利率曲線總體保持不變（聽不清楚），我會看到進入 25 年的另一個階段。

Our next question is from the line of John Arfstrom with RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場部的約翰‧阿夫斯特羅姆 (John Arfstrom)。

A couple of guidance clarifications for you, Zach. When you say 1Q net interest income is a trough, how deep is that trough? How much lower, where do you want us to start, I guess, for 1Q.

扎克，為您提供一些指導說明。當你說第一季淨利息收入是一個低谷時，這個低谷有多深？我想，第一季你希望我們從哪裡開始，低多少？

Good question. Q1, by the way, is typically seasonally lower just with day count and just other mix items. And so I think we'll probably see a level that is lower than Q4 by around the same amount that Q4 was lower than Q3 and then begin to grow from there. And so it's really the kind of trajectory from there that's really the major difference in the guidance range, given that if you just pull back low growth, I would expect in Q1 will be about the same year-on-year as we saw in Q4, i.e. around 2%. And then steadily accelerating from there and ending the year growing average and potentially above the high end of the loan growth range. The average should be the 3% to 5%, I discussed, there's a trajectory for sure during the year. And likewise, in terms of NIM, I think it's likely that the NIM will likely be at its lowest spot in the year -- in the first quarter and then kind of rising pretty heavily dependent on which scenario you look at, but that's the general trajectory I'm expecting.

好問題。順便說一句，第一季通常會因天數和其他混合項目而季節性較低。因此，我認為我們可能會看到一個比第四季度低的水平，其幅度大約與第四季度低於第三季度的水平相同，然後從那裡開始增長。因此，從那裡開始的軌跡確實是指導範圍的主要差異，因為如果你只是拉低低成長，我預計第一季度的同比情況將與我們在第四季度看到的情況大致相同，即2%左右。然後從此穩步加速，到年底增長平均水平，並可能高於貸款增長範圍的高端。我討論過，平均值應該是 3% 到 5%，這一年肯定有一個軌跡。同樣，就淨利差而言，我認為淨利差很可能會在第一季處於今年的最低點，然後會在很大程度上取決於你所看到的情況而上升，但這是總體情況我期待的軌跡。

Okay. Okay. Good. I think it's important to set that up. And then on expenses, when you say consistent, there's a lot of hand-wringing last quarter on your expense guide. And when you say consistent, are you basically saying flat line expenses quarterly for 2024, meaning that all the expense investments and in things that you've done are essentially in the run rate today and you don't see a lot of these pressures as '24 progresses? Is that fair?

好的。好的。好的。我認為設置它很重要。然後在費用方面，當你說保持一致時，上個季度的費用指南中有很多令人沮喪的事情。當你說一致時，你基本上是說2024 年每季支出持平，這意味著所有支出投資和你所做的事情基本上都在今天的運行率中，並且你不會看到很多這些壓力，因為'24有進展嗎？這樣公平嗎？

It's an excellent one, I really pursue the chance to clarify that. Broadly speaking, the answer is yes. The dollar amount of expenses overall, we saw on a core basis in Q4, the forecast we've got in our budget represents pretty similar dollar amounts overall for each of the quarters during 2024 coincidently. There's -- in my mind, I try to illustrate this picture for you, there's a variety of factors that are kind of offsetting each other and driving within that. I would say there's still a little bit of additional ramp-up of run rate, some of the incremental capability investments that we're doing. Likewise, a little bit of additional ramp-up in some of these new initiatives like in the commercial business. We're also actively tuning our overall strategic investments to modestly offset that.

這是一篇很棒的文章，我真的很想有機會澄清這一點。從廣義上講，答案是肯定的。我們在第四季度的核心基礎上看到的總體支出金額，我們在預算中得到的預測恰好代表了 2024 年每季的總體支出金額非常相似。在我看來，我試圖向你們展示這張圖片，有多種因素相互抵消並在其中發揮作用。我想說的是，運行率仍然有一點額外的提升，我們正在進行一些增量能力投資。同樣，其中一些新措施（例如商業業務）也得到了一些額外的提升。我們也積極調整我們的整體策略投資，以適度抵消這一影響。

And then lastly, you've got these efficiency programs, which are accumulating in their impact over time. The business process reengineering initiative we've been driving for quite some time, we internally call it operation accelerates. The business process offshoring initiative, which, by the way, is also growing, accumulating. So there's sort of a series of factors that are netting together, but the result of it is basically dollars that are pretty consistent with a pretty tight range from Q4.

最後，你已經有了這些效率計劃，它們的影響隨著時間的推移而不斷累積。我們已經推動了相當長一段時間的業務流程重組計劃，我們內部稱之為營運加速。順便說一句，業務流程離岸計劃也在不斷增長和累積。因此，有一系列因素綜合在一起，但其結果基本上是美元與第四季度的相當窄的區間非常一致。

(Operator Instructions) Our next question will be from the line of Matt O'Connor with Deutsche Bank.

（操作員指示）我們的下一個問題將來自德意志銀行的馬特·奧康納（Matt O'Connor）。

This is Nate Stein on behalf of Matt. I just wanted to ask about commercial credit. Commercial real estate net charge-offs increased versus 3Q levels. Can you talk about what drove that and just touch on the outlook for commercial real estate credit quality this year? And then on the C&I side, these also continue to normalize. Can you talk about what you're seeing in this book?

我是內特·斯坦，代表馬特。我只是想問一下商業信用的問題。商業房地產淨沖銷較第三季水準增加。您能談談是什麼推動了這一趨勢，並談談今年商業房地產信貸品質的前景嗎？然後在 C&I 方面，這些也繼續正常化。您能談談您在這本書中看到的內容嗎？

Sure, Nate, this is Brendan. I'll take that. For the quarter, yes, we did see on a basis point perspective, it was an increase in the commercial real estate side. But I want to sort of point you to the dollars, there is $20 million of charge-offs in the quarter, and it really represented 3 transactions. So it's consistent with our view of the real estate portfolio at this time, which is from a charge-off perspective, the focus will be in the office portfolio. That's where we think that there is potential for loss content, which is why we've increased our reserves to approximately 10% there. And so what you're seeing in the current quarter is sort of the manifestation of that message that we've been delivering for some time.

當然，內特，這是布倫丹。我會接受的。對於本季度，是的，我們確實從基點角度看到，這是商業房地產的成長。但我想向您指出美元，本季有 2000 萬美元的沖銷，它實際上代表了 3 筆交易。因此，這與我們目前對房地產投資組合的看法是一致的，即從沖銷的角度來看，重點將是辦公室投資組合。我們認為這就是有可能損失內容的地方，這就是為什麼我們將那裡的儲備增加到大約 10%。因此，您在本季看到的情況是我們一段時間以來一直在傳達的訊息的體現。

Let me take a step back and look more broadly, the portfolio on commercial in general is actually performing pretty well. I mean, the C&I side of the house has had its individual idiosyncratic issues. But in general, the strength of the portfolio is the result of our strong portfolio management and our low-to-moderate risk profile that we talked. So I feel really good about the commercial portfolio at this time.

讓我退後一步，從更廣泛的角度來看，商業投資組合實際上表現得相當不錯。我的意思是，房子的 C&I 方面有其獨特的問題。但總的來說，投資組合的實力是我們強大的投資組合管理和我們所說的低至中等風險狀況的結果。所以我對目前的商業投資組合感覺非常好。

So Nate, it's Steve. The charge-offs, gross charge-offs, Q3 and Q4 were $2 million a part. That it was very, very similar. The difference was in all other recoveries. The pre portfolio is performing very well. The office portfolio has -- had minimal losses, 23 bps for the year. (inaudible) charge-offs is outstanding. We're very pleased with how the performance has occurred, and we're confident going forward. Thanks for the question.

內特，是史蒂夫。第三季和第四季的沖銷總額、沖銷總額均為 200 萬美元。這非常非常相似。差異在於所有其他恢復情況。前期投資組合表現非常好。辦公室投資組合今年的損失最小，為 23 個基點。 （聽不清楚）沖銷尚未完成。我們對目前的表現非常滿意，並且對未來充滿信心。謝謝你的提問。

All right. And if I could just ask one follow-up on the criticized assets. So these also kick up in the fourth quarter. Can you just talk about what drove that?

好的。我是否可以詢問有關受批評資產的後續行動。所以這些也在第四季開始出現。您能談談是什麼推動了這一點嗎？

This is Brendan again, Nate. As Zach said in the prepared remarks, it really came out of our commercial real estate portfolio. The impact of higher short-term rates has persisted, and that's what's reflected in those results. Again, we have been signaling through the second half of last year that we expected criticized to move up. And that's exactly how it played out. Again, we have good confidence in our client selection in that portfolio and solid reserve against it overall. So I guess, I classify that as just more credit normalization across the portfolio. Thank you for the question.

內特，這又是布倫丹。正如扎克在準備好的演講中所說，它確實來自我們的商業房地產投資組合。短期利率上升的影響持續存在，這也反映在這些結果中。同樣，我們去年下半年一直在發出訊號，預計批評數量將會上升。結果就是這樣。同樣，我們對該投資組合中的客戶選擇充滿信心，並且總體上有堅實的儲備。所以我想，我將其歸類為整個投資組合的更多信用正常化。感謝你的提問。

Our next question is from the line of Ebrahim Poonawala with Bank of America.

我們的下一個問題來自美國銀行的易卜拉欣·普納瓦拉 (Ebrahim Poonawala)。

Just wanted to follow up on the loan growth guide, Steve. It does feel at the higher end of what we've seen over the last week from your peers. Not -- sorry if I missed it, but give us a sense of how much of this is -- this market share gain that you expect versus the underlying growth that you're seeing in these markets and your expectations, I guess, tied to GDP growth?

只是想跟進貸款增長指南，史蒂夫。這確實感覺比我們上週從你們的同行那裡看到的情況要高。不是——抱歉，如果我錯過了，但請讓我們了解其中有多少——你所期望的市場份額增長與你在這些市場中看到的潛在增長以及你的期望有關，我猜，國內生產總值成長？

Well, we've had growth last year of 2%. If anything, I think the signal from the Fed pivot will foster further loan growth for the industry. And we are in an advantaged position. And so we'll capture share from that, but we also have the specialty banking initiatives in the Carolinas and they began with no portfolio. So there's no prepayment -- repayment of risk, obviously, and that's all net loan growth. But those groups are off to terrific stocks.

嗯，去年我們的成長率為 2%。如果有的話，我認為聯準會轉向的訊號將促進該行業進一步的貸款成長。而且我們處於有利地位。因此，我們將從中獲取份額，但我們在卡羅來納州也有專業銀行計劃，但他們一開始沒有投資組合。因此，沒有提前還款——顯然是風險償還，這就是淨貸款成長。但這些集團的股票都非常出色。

We're very, very pleased with the quality of colleagues that we've been able to attract to the Huntington. And I'm quite confident in our teams, both the core teams that Bill deliver in our footprint, especially banking teams. And frankly, our consumer lending teams are outstanding as well. So as we come into the year, we've got momentum, and we're going to continue to invest in these businesses and that cumulatively should help us achieve or even exceed the goals.

我們對亨廷頓吸引到的同事的素質非常非常滿意。我對我們的團隊非常有信心，比爾在我們的足跡中提供的核心團隊，尤其是銀行團隊。坦白說，我們的消費貸款團隊也很出色。因此，當我們進入這一年時，我們已經有了動力，我們將繼續投資這些業務，累積起來應該有助於我們實現甚至超越目標。

Got it. And I guess what I didn't here see was any mention of fiscal stimulus, the chipset, et cetera, flowing through your market. Is that not as meaningful going forward around moving the needle on growth?

知道了。我想我在這裡沒有看到任何提及財政刺激、晶片組等，流經你們的市場。推動經濟成長不是很有意義嗎？

The markets have -- broadly speaking, we're talking about 11, 12 states that we're in with our network. But here in Columbus, which is what you're referring with the Intel plant, that plant is well under construction and the supply chain commitments will largely be made, we think, this year as they move towards opening in the following year. So we have some unusual factors that are strengthening the outlook here in Greater Columbus, and we have very, very significant market share here and lead by a lot in most categories. But it'll also -- the broader region and that's one of just many sectors that have chosen the Midwest. I think batteries front from East Michigan, Ann Arbor through Columbus and some of the announcements last year, including the Honda joint venture here in Greater Columbus on the battery front. There's a lot of investment that's being made in the core footprint, all of which will generate economic benefit for the industry. So for the industry and certainly for us, with our leadership position in any of these areas. Thanks for the question.

從廣義上講，我們的網路覆蓋了 11、12 個州。但在哥倫布，也就是你所說的英特爾工廠，該工廠正在順利建設中，我們認為，供應鏈承諾將在今年很大程度上做出，因為他們將在明年開業。因此，我們有一些不尋常的因素正在增強大哥倫布地區的前景，我們在這裡擁有非常非常重要的市場份額，並且在大多數類別中都處於領先地位。但它也會——更廣泛的地區，這是選擇中西部的眾多行業之一。我認為電池前沿從東密西根州、安娜堡到哥倫布以及去年的一些公告，包括位於大哥倫布的本田合資企業在電池方面。在核心足跡上進行了大量投資，所有這些都將為該行業帶來經濟效益。對於整個產業來說，當然對我們來說也是如此，因為我們在這些領域都處於領先地位。謝謝你的提問。

So I think we're hitting the top of the hour. I'm just going to wrap. I want to thank you very much for joining us today. In closing, we're pleased with the fourth quarter results as we dynamically managed to this environment. We believe we're well positioned investments we made in '23 will further drive revenue growth in '24 and beyond. Our focus is on driving core revenue growth, carefully managing expenses to support investments in the business and growing loan in consistent with our aggregate moderate-to-low risk appetite. The management team is focused on executing our strategies that we previously shared.

所以我認為我們正處於最高峰。我只是要包裝一下。我非常感謝您今天加入我們。最後，我們對第四季度的業績感到滿意，因為我們動態地管理了這種環境。我們相信，我們在 23 年所做的投資定位良好，將進一步推動 24 年及以後的營收成長。我們的重點是推動核心收入成長，謹慎管理支出以支持業務投資，並根據我們整體的中低風險偏好增加貸款。管理團隊專注於執行我們之前分享的策略。

And as a reminder, the Board of executives or colleagues were top 10 shareholders and that creates strong long-term alignment with our shareholders generally. And finally, we're grateful to our nearly 20,000 exceptional colleagues to deliver these outstanding results and our perennial award winners for customer service. Thank you all very much. I appreciate your interest in Huntington. Have a great day.

需要提醒的是，高階主管董事會或同事是十大股東，這與我們的股東總體上建立了牢固的長期一致性。最後，我們感謝近 20,000 名傑出的同事取得了這些出色的成果，並感謝我們的客戶服務常年獲獎者。非常感謝大家。我感謝您對亨廷頓的興趣。祝你有美好的一天。

This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。