Huntington Bancshares Inc (HBAN) 2024 Q1 法說會逐字稿

Hello, and welcome to the Huntington Bancshares First Quarter Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Huntington Bancshares 第一季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It's now my pleasure to turn the call over to Tim Sedabres, Director of Investor Relations. Please go ahead, Tim.

現在我很高興將電話轉給投資者關係總監 Tim Sedabres。請繼續，蒂姆。

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 in about 1 hour from the close of the call.

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 1 小時後將可重播。

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.

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 turn it over to Steve.

那麼，讓我把它交給史蒂夫。

Thanks, Tim. Good morning, everyone, and welcome. Thank you for joining the call today. We are pleased to announce our first quarter results, which Zach will detail later. Again, these results are supported by our colleagues who live our purpose every day 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。我們很高興宣布第一季的業績，扎克稍後將詳細介紹。同樣，這些成果得到了我們同事的支持，他們每天都在實踐我們的目標，讓人們的生活更美好，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 executing our organic growth strategies and leveraging our position of strength. As planned and managed over the years, our liquidity and capital metrics are top tier.

現在轉到投影片 4。首先，我們正在執行有機成長策略並利用我們的優勢地位。按照多年來的規劃和管理，我們的流動性和資本指標處於一流水平。

Second, we delivered loan growth in the quarter and expect the pace to accelerate over the remainder of the year. Our teams are acquiring new customers and relationships in both commercial and consumer categories. We are maintaining our momentum in deposit gathering with a well-managed beta.

其次，我們在本季實現了貸款成長，並預計今年剩餘時間成長將加快。我們的團隊正在商業和消費者類別中獲取新客戶和關係。我們透過管理良好的測試版保持了存款收集的勢頭。

Third, we expect to drive sequential increases in net interest income and fee revenues from the level reported in the first quarter, supported by accelerating loan growth, coupled with effective balance sheet management.

第三，在貸款成長加速以及有效的資產負債表管理的支持下，我們預計將推動淨利息收入和費用收入較第一季報告的水平連續增長。

Fourth, we continued to rigorously manage credit, consistent with our aggregate moderate- to low-risk appetite.

第四，我們持續嚴格管理信貸，這與我們整體的中低風險偏好一致。

Finally, we are positioned to power earnings expansion over the course of the year and into 2025. Our investments are delivering results, and the underlying core is performing well.

最後，我們準備推動全年乃至 2025 年的獲利擴張。

I will move us on to Slide 5 to recap our performance. We delivered loan growth, with balances growing by $1.6 billion from a year ago and have grown by a 4% CAGR over the past 2 years. This pace reflects our intentional optimization efforts last year, and we believe we are positioned to accelerate growth over the course of 2024 and carrying into 2025.

我將讓我們轉到幻燈片 5 來回顧我們的表現。我們實現了貸款成長，餘額比一年前成長了 16 億美元，過去 2 年複合年增長率為 4%。這一速度反映了我們去年有意進行的優化工作，我們相信我們有能力在 2024 年並持續到 2025 年加速成長。

Deposit balances also increased, growing $7.9 billion or 5.5% over the past year. Capital remained strong with reported common equity Tier 1 of 10.2% and adjusted common equity Tier 1 of 8.5%, inclusive of AOCI. Liquidity remains top tier with coverage of uninsured deposits of 205%, a peer-leading level. Credit quality was stable as debt charge-offs improved by 1 basis point from the fourth quarter to 30 basis points.

存款餘額也有所增加，去年增加了 79 億美元，即 5.5%。資本仍然強勁，報告的一級普通股為 10.2%，調整後的一級普通股為 8.5%（包括 AOCI）。流動性仍處於領先水平，未保險存款覆蓋率達到 205%，處於同業領先水準。信貸品質穩定，債務沖銷較第四季提高 1 個基點至 30 個基點。

We are sustaining momentum and growth of our primary bank relationships, with Consumer and Business increasing by 2% and 4%, respectively, year-over-year. We continue to seize opportunities to add talented bankers. Over the past 2 quarters, we've added teams in the Carolinas and Texas. We have also launched new commercial specialty verticals, including fund finance, health care ABL and Native American financial services.

我們正在維持主要銀行關係的動能和成長，消費者和企業業務分別較去年同期成長 2% 和 4%。我們繼續抓住機會增加有才華的銀行家。在過去的兩個季度中，我們增加了卡羅來納州和德克薩斯州的球隊。我們也推出了新的商業專業垂直領域，包括基金金融、醫療保健 ABL 和美洲原住民金融服務。

The momentum we have across our markets, coupled with our strong culture, continues to attract great banking talent to Huntington. We expect to add additional colleagues and capabilities as we move through the year.

我們在市場上的發展勢頭，加上我們強大的文化，繼續吸引優秀的銀行人才來到亨廷頓。我們預計隨著這一年的發展，將增加更多的同事和能力。

We have clear objectives for 2024, focused on executing our organic growth strategies. This should result in accelerated loan growth, sustained deposit growth and expanded fee revenue streams. Coupled with our expense outlook, we expect to see PPNR expanding over the course of the year and into 2025.

我們有明確的 2024 年目標，重點是執行我們的有機成長策略。這將導致貸款加速成長、存款持續成長以及手續費收入來源擴大。結合我們的支出前景，我們預計 PPNR 將在今年乃至 2025 年持續擴大。

The macro environment is conducive to growth, with customer demand holding up well in a resilient and stable economy. The addition of new markets and bankers is supporting expanding loan pipelines, with late-stage commercial pipelines ending the quarter at the highest level in over a year.

宏觀環境有利於成長，客戶需求在經濟有彈性和穩定的情況下保持良好。新市場和銀行家的增加正在支持擴大貸款管道，後期商業管道在本季末達到一年多來的最高水準。

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.

謝謝史蒂夫，大家早安。

Slide 6 provides highlights of our fourth quarter results. We reported GAAP earnings per common share of $0.26 and adjusted EPS of $0.28. The quarter included $39 million of notable items, primarily related to the updated FDIC Deposit Insurance Fund special assessment of $32 million, which was driven by higher losses from last year's bank failures.

幻燈片 6 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 0.26 美元，調整後每股收益為 0.28 美元。該季度包括 3,900 萬美元的值得注意項目，主要與更新後的 FDIC 存款保險基金特別評估 3,200 萬美元有關，這是由於去年銀行倒閉造成的損失增加所致。

Additionally, we incurred $7 million of costs related to incremental business process offshoring efficiency plans that were finalized during the quarter. These items collectively impacted EPS by $0.02 per common share.

此外，我們還產生了 700 萬美元與本季最終確定的增量業務流程離岸效率計劃相關的成本。這些項目總共對每股普通股 EPS 造成 0.02 美元的影響。

Return on tangible common equity, or ROTCE, came in at 14.2% for the quarter. Adjusted for notable items, ROTCE was 15.3%. Average deposits continued to grow during the quarter, increasing by $1.1 billion or 0.7%. Cumulative deposit beta totaled 43% through quarter end. Average loan balances increased by $701 million or 0.6% for the quarter. Credit quality remains strong with net charge-offs of 30 basis points. Allowance for credit losses was stable and ended the quarter at 1.97%.

本季有形普通股回報率 (ROTCE) 為 14.2%。在值得注意的項目進行調整後，ROTCE 為 15.3%。本季平均存款持續成長，增加 11 億美元，成長 0.7%。截至季末，累計存款貝塔係數總計 43%。本季平均貸款餘額增加 7.01 億美元，成長 0.6%。信貸品質依然強勁，淨沖銷為 30 個基點。信貸損失準備金穩定，本季末為 1.97%。

Turning to Slide 7. As I noted, average loan balances increased quarter-over-quarter and were higher by 1.3% year-over-year. For the quarter, loans increased at a 2.3% annualized pace. We expect the pace of future loan growth to accelerate over the course of 2024.

轉向投影片 7。本季貸款年化成長率為 2.3%。我們預計 2024 年未來貸款成長速度將加快。

Loan growth was commercial led for the quarter, with total commercial loans increasing by $691 million. Commercial balance growth included distribution finance, which increased by $352 million, benefiting from normal seasonality. Auto floorplan increased by $313 million. CRE balances declined by $31 million.

本季貸款成長由商業貸款帶動，商業貸款總額增加 6.91 億美元。商業餘額成長包括分銷融資，受益於正常的季節性，增加了 3.52 億美元。汽車平面圖增加了 3.13 億美元。 CRE 餘額減少了 3,100 萬美元。

All other commercial portfolios were relatively unchanged on a net basis. Within other commercial, we saw notable strength in regional and business banking balances as a result of sustained production levels and the continued retention of all SBA loan production on balance sheet.

所有其他商業投資組合淨值相對不變。在其他商業領域，由於持續的生產水平以及所有 SBA 貸款生產繼續保留在資產負債表上，我們看到區域和商業銀行餘額顯著強勁。

In total consumer loans, average balances were flat overall for the quarter. Within consumer, residential mortgage increased by $137 million, benefiting from production as well as slower prepay speeds. Average auto balances declined by $59 million, however, increased by $180 million on an end-of-period basis. RV/Marine average balances declined by $42 million, and home equity was lower by $35 million.

在消費貸款總額中，本季平均餘額大致持平。在消費者方面，住宅抵押貸款增加了 1.37 億美元，受益於生產和預付款速度放緩。平均汽車餘額下降了 5,900 萬美元，但期末增加了 1.8 億美元。房車/船舶平均餘額下降了 4200 萬美元，房屋淨值下降了 3500 萬美元。

Turning to Slide 8. As noted, we drove another quarter of solid deposit growth. Average deposits increased by $1.1 billion in the first quarter. On a year-over-year basis, deposits have increased by $4.6 billion or 3.1%. Total cumulative deposit beta continued to decelerate quarter-over-quarter and ended at 43%, consistent with our expectations for this point in the rate cycle.

轉向投影片 8。第一季平均存款增加11億美元。存款年增 46 億美元，成長 3.1%。累積存款貝塔總額較上季持續下降，最終降至 43%，與我們對利率週期此時點的預期一致。

Our current outlook for deposit beta remains unchanged, trending a few percentage points higher so long as there is a pause from the Fed and then beginning to revert and fall when we see rate cuts. Market expectations for rate cuts have clearly been pushed out compared to our January earnings call. We continue to believe that there will be rate cuts over time, and the impact of beta will be a function of the duration in this pause from the Fed.

我們目前對存款貝塔值的展望保持不變，只要聯準會暫停行動，存款貝塔值就會上升幾個百分點，然後當我們看到降息時就會開始恢復和下降。與我們一月份的財報電話會議相比，市場對降息的預期顯然已經被推遲。我們仍然認為，隨著時間的推移，降息將會發生，貝塔的影響將取決於聯準會暫停降息的持續時間。

Turning to Slide 9. Noninterest-bearing mix shift is tracking closely to our forecast. Average noninterest-bearing balances decreased by $1.3 billion or 4% from the prior quarter. We continue to expect this mix shift to moderate and stabilize during 2024.

轉向投影片 9。平均無息餘額比上一季減少 13 億美元，或 4%。我們繼續預期這種混合變化將在 2024 年趨於溫和並趨於穩定。

On to Slide 10. For the quarter, net interest income decreased by $27 million or 2% to $1.3 billion. Net interest margin declined sequentially to 3.01%. Cumulatively, over the cycle, we have benefited from our asset sensitivity and earning asset growth, with net interest revenues growing at a 6% CAGR over the past 2 years.

請參閱投影片 10。淨利差較上季下降至3.01%。總的來說，在整個週期中，我們受益於我們的資產敏感性和獲利性資產成長，過去兩年淨利息收入的複合年增長率為 6%。

Reconciling the change in NIM from Q4, we saw a decrease of 6 basis points. This was primarily due to lower spread, net of free funds, which accounted for 9 basis points, along with a 1 basis point benefit from lower average Fed cash and 2 basis points positive impact from other items, including lower hedge drag impact.

與第四季度相比，NIM 的變化得到了調整，我們看到下降了 6 個基點。這主要是由於利差下降（扣除自由資金，佔9 個基點），此外平均聯邦現金下降帶來1 個基點的好處，以及其他項目帶來的2 個基點的正面影響，包括較低的對沖拖累影響。

We continue to benefit from fixed rate loan repricing. We have seen notable increases in fixed asset portfolio yields, thus far, in the rate cycle. And many of our fixed rate loan portfolios retain substantial upside repricing opportunity through 2024 and into 2025.

我們繼續受益於固定利率貸款重新定價。到目前為止，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。我們的許多固定利率貸款組合在 2024 年和 2025 年之前都保留了大量的上行重新定價機會。

As a reminder, we continue to analyze and develop action plans for a wide range of potential economic and interest rate scenarios for both short-term rates as well as the slope and level of the curve. The basis of our planning and guidance continues to be a central set of those scenarios that are bounded on the low end by a scenario that includes 3 Fed fund cuts in 2024, which tracks closely to the current Fed dot plot.

提醒一下，我們將繼續針對短期利率以及曲線的斜率和水平的各種潛在經濟和利率情境分析和製定行動計劃。 我們的規劃和指導的基礎仍然是這些情景的核心集合，這些情景的低端範圍受到包括 2024 年 3 次聯邦基金削減在內的情景的限制，該情景與當前的美聯儲點陣圖密切相關。

This scenario is also aligned to the forward curve from the end of March for longer durated time points. It's important to note that the level of the curve in the 2- to 5-year term points is an important driver of our asset repricing and spreads. The higher scenario assume rates stay higher for longer, with no Fed fund rate reductions this year.

這種情況也與 3 月底以來較長持續時間點的遠期曲線一致。值得注意的是，2 至 5 年期限點的曲線水準是我們資產重新定價和利差的重要驅動因素。較高的情景假設利率在較長時間內保持在較高水平，今年聯邦基金利率不會下調。

This scenario also assumes the longer durated time points remain at or above the levels at quarter end. In both of these scenarios, as we project further out into 2025, we continue to believe it is most likely that there will eventually be rate cuts at some point as we get into next year.

此場景還假設較長的持續時間點保持在或高於季度末的水平。在這兩種情況下，隨著我們進一步預測到 2025 年，我們仍然相信，在進入明年的某個時候，最終很可能會降息。

Comparing our latest outlook for those scenarios to the range of outlook we shared on our January guidance, there have certainly been changes given the volatility of rates over the past quarter. Both scenarios now expect Fed funds to stay elevated for longer, which will drive some incremental deposit beta, while the belly of the curve has improved, which will also support asset yields and repricing benefit.

將我們對這些情景的最新展望與我們在 1 月份指導中分享的展望範圍進行比較，考慮到過去季度利率的波動，肯定會發生變化。現在這兩種情況都預計聯邦基金將在更長時間內保持高位，這將推動一些增量存款貝塔，同時曲線腹部有所改善，這也將支撐資產收益率和重新定價收益。

It's difficult to predict exactly how the rate environment will play out over the course of the year. As we look at the impact of this rate outlook on our business, the fundamental elements of our prior guidance remain unchanged.

很難準確預測利率環境在一年中將如何發揮作用。當我們審視這一利率前景對我們業務的影響時，我們先前指導的基本要素保持不變。

There's much of the year left to play out. And as a result, we're maintaining our range for full year spread revenue growth. At the margin, we're seeing somewhat higher funding costs, as the expected timing of rate cuts has been pushed out. If this plays out for the full year, our view is that the overall NIM outcome could be a few basis points lower than our previous guidance in both scenarios.

今年還有很多時間有待完成。因此，我們維持了全年利差收入成長的範圍。在邊際上，我們看到融資成本上升，因為預期的降息時間已被推遲。如果這種情況持續到全年，我們認為整體淨利差結果可能會比我們先前在這兩種情況下的指導低幾個基點。

Importantly, we're also seeing strong continued deposit growth that is more likely to be at the top end of our deposit growth guidance range, which provides good core funding for our accelerating loan growth. We continue to see Q1 as the trough for net interest income on a dollar basis. We expect sequential growth in spread revenues from this level during the remaining quarters of the year.

重要的是，我們也看到存款持續強勁成長，更有可能達到存款成長指引範圍的上限，這為我們加速貸款成長提供了良好的核心資金。我們仍然認為第一季是以美元計算的淨利息收入的低谷。我們預計今年剩餘季度的價差收入將在此水準上持續成長。

We also continue to project that a higher rate scenario will produce a higher overall NIM. In this scenario, we would see a more extended trend of higher deposit beta. And hence, overall funding cost would be higher. We would also see an incrementally higher fixed asset repricing benefit.

我們也繼續預測，較高的利率情境將產生更高的整體淨利差。在這種情況下，我們會看到存款貝塔值上升的更廣泛趨勢。因此，整體融資成本會更高。我們也將看到固定資產重新定價效益逐步提高。

Importantly, our core focus is on driving revenue growth. And as I noted, we continue to forecast that the combination of this margin outlook, coupled with accelerating loan growth, will drive solid revenue expansion from here. This will support accelerating earnings growth rates as we move throughout this year and continue on into 2025.

重要的是，我們的核心重點是推動收入成長。正如我所指出的，我們繼續預測，這種利潤率前景，加上貸款成長加速，將推動收入的穩健成長。這將支持我們今年乃至 2025 年的獲利成長率加速。

Turning to Slide 11. Our level of cash and securities increased, as we benefited from higher funding balances from sustained deposit growth as well as our senior note offering and ABS transactions in the first quarter. We expect cash and securities as a percentage of total average assets to remain at approximately 27% to 28% as the balance sheet grows over time.

轉向投影片 11。我們預計，隨著資產負債表隨著時間的推移而增長，現金和證券占平均總資產的比例將保持在約 27% 至 28%。

We are reinvesting securities cash flows in short duration, HQLA, consistent with our approach to continue to manage the unhedged duration of the portfolio lower over time. We have reduced the overall hedge duration of the portfolio from 4.1 years to 3.5 years over the past 7 quarters.

我們正在對短期證券現金流（HQLA）進行再投資，這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 7 個季度，我們將投資組合的整體對沖久期從 4.1 年減少到 3.5 年。

Turning to Slide 12. You can see an updated outlook for AOCI. Based on the rate environment at quarter end, AOCI moved incrementally higher. AOCI at quarter end was 21% lower than the levels we saw in the third quarter. Our outlook continues to forecast a substantial portion of AOCI recapture over the next couple of years.

轉向幻燈片 12。根據季末的利率環境，AOCI 逐步走高。季度末的 AOCI 比第三季的水平低 21%。我們的展望繼續預測 AOCI 的很大一部分將在未來幾年內重新奪回。

Turning to Slide 13. We have updated the presentation of our balance sheet hedging program in order to more directly illustrate the intent of the hedging program. This view shows the effective swap profile in the future, including the effect of forward starting swaps, so you can see more directly the hedging exposures as they will play out over the next 2 years.

轉向投影片 13。此視圖顯示了未來的有效掉期概況，包括遠期啟動掉期的影響，因此您可以更直接地看到對沖風險敞口將在未來兩年內發揮作用。

Slide 43 in the appendix provides the total notional swap exposure similar to our prior reporting. As of March 31, we had $16.8 billion of effective received fixed swaps and $10.7 billion of effective pay fix swaps. Our hedging program is designed with 2 primary objectives: to protect margin and revenue in down rate environment; and to protect capital in potential uprate scenarios.

附錄中的投影片 43 提供了與我們先前的報告類似的總名義掉期曝險。截至 3 月 31 日，我們擁有 168 億美元的有效已收固定掉期和 107 億美元的有效薪酬固定掉期。我們的對沖計劃有兩個主要目標：在利率下調的環境下保護利潤和收入；並在潛在的升息情況下保護資本。

The pay fix swaps, which have been effective in protecting capital during this REIT cycle, have a weighted average life of just over 3 years and will begin to mature beginning in the second quarter of 2025. As these instruments mature, our asset sensitivity will reduce.

薪酬固定互換在本 REIT 週期中有效保護了資本，其加權平均壽命略高於 3 年，將於 2025 年第二季開始到期。

Over time, we intend to gradually add to our down rate protection program at a measured pace. As the rate outlook moved over the course of the first quarter and the yield curve became less negatively inverted, we incrementally added to our down rate protection hedges.

隨著時間的推移，我們打算以有節奏的速度逐步增加我們的降價保護計劃。隨著第一季利率前景的變化以及殖利率曲線負面倒掛的程度減輕，我們逐漸增加了利率下調保護對沖。

We added $3.5 billion of notional forward starting received fixed swaps in the first quarter. Additionally, through the first 2 weeks of April, we added another $2 billion of forward starting received fixed swaps. The forward starting structure minimizes near-term negative carry, while protecting moderate-term net interest margin in 2025 and 2026. These instruments will also reduce the overall asset sensitivity of the business.

我們在第一季增加了 35 億美元的名義遠期起始收到的固定掉期。此外，在 4 月的前兩週，我們又增加了 20 億美元的遠期起始固定掉期利息。遠期啟動結構可最大限度地減少近期負利差，同時保護 2025 年和 2026 年的中期淨利差。

We will remain dynamic to manage the hedging and interest rate positioning of the balance sheet, and we may make further changes over time. Our current approach is designed to gradually reduce asset sensitivity throughout the next 1.5 years, while allowing us to maximize the benefit from the current rate environment.

我們將保持動態管理資產負債表的避險和利率定位，並且隨著時間的推移，我們可能會做出進一步的變更。我們目前的方法旨在在未來 1.5 年內逐步降低資產敏感性，同時使我們能夠從當前利率環境中獲得最大利益。

Moving on to Slide 14. Our fee revenue growth is driven by 3 substantive areas: capital markets, payments and wealth management. In capital markets, total revenues declined from the prior quarter driven by lower advisory revenues. Commercial banking related capital markets revenues increased sequentially since troughing in the third quarter. As commercial loan production continues to accelerate, this will support growth in areas such as interest rate derivatives, FX and syndications. Debt capital markets is also expected to notably benefit over the course of the year.

轉到投影片 14。在資本市場，由於諮詢收入下降，總收入較上一季下降。商業銀行相關資本市場收入自第三季觸底以來持續成長。隨著商業貸款生產持續加速，這將支持利率衍生性商品、外匯和銀團等領域的成長。預計債務資本市場今年也將顯著受益。

Within advisory, pipelines and backlog continue to remain robust, and we expect advisory to contribute to growth in capital markets revenues over the remainder of the year. Payments and cash management revenue was seasonally lower in the first quarter and increased 7% year-over-year. Debit card revenue continues to outperform industry benchmarks. Treasury management fees have increased 10% year-over-year, as we have deepened customer penetration. We have substantive opportunities across the board in payments to grow revenues over the coming years.

在諮詢業務方面，管道和積壓訂單持續保持強勁，我們預計諮詢業務將在今年剩餘時間內為資本市場收入的成長做出貢獻。第一季支付和現金管理收入季節性下降，年增 7%。借記卡收入繼續跑贏行業基準。隨著我們加深客戶滲透，資金管理費年增 10%。我們在未來幾年的支付領域擁有大量增加收入的機會。

Our wealth and asset management strategy is delivering results, with revenues up 10% from the prior year. We are seeing great execution and the benefits of our investments in this area. Advisory relationships have increased 8% year-over-year, and assets under management have increased 12% year-over-year.

我們的財富和資產管理策略正在取得成果，營收比上年成長 10%。我們看到了我們在這一領域的投資的出色執行力和效益。諮詢關係年增 8%，管理資產年增 12%。

Turning to Slide 15. On an overall level, GAAP noninterest income increased by $62 million to $467 million for the first quarter, excluding the impacts of the mark-to-market on the pay fix swaptions in the prior quarter and the CRT fees declined seasonally by $12 million quarter-over-quarter. Our first quarter fee revenue is generally the low point for the year, and we expect noninterest income to grow sequentially from this quarter's level.

轉向幻燈片 15。增加1200 萬美元。我們第一季的費用收入總體上是今年的最低點，我們預計非利息收入將從本季的水平開始連續成長。

Moving on to Slide 16 on expenses. GAAP non-interest expense decreased by $211 million, and underlying core expenses decreased by $24 million. During the quarter, we incurred $32 million of incremental expense related to the FDIC Deposit Insurance Fund special assessment as well as $7 million related to our ongoing business process offshoring program to drive efficiencies.

前往關於費用的幻燈片 16。 GAAP 非利息費用減少了 2.11 億美元，基本核心費用減少了 2,400 萬美元。本季度，我們產生了 3,200 萬美元與 FDIC 存款保險基金特別評估相關的增量費用，以及與我們正在進行的業務流程離岸計劃相關的 700 萬美元，以提高效率。

Excluding these items, core expenses were marginally lower in the first quarter than we expected, largely due to timing of certain spend on tech and data initiatives as well as lower incentive compensation. We continue to forecast 4.5% core expense growth for the full year.

排除這些項目，第一季的核心支出略低於我們的預期，這主要是由於技術和數據計劃上的某些支出的時機以及激勵薪酬的降低。我們持續預測全年核心費用將成長 4.5%。

From a timing standpoint, we expect core expenses to be higher in the second quarter at approximately $1.130 billion. This level should be relatively stable for the third and fourth quarter. There may be some variability given revenue-driven compensation as well as the pace of expected new hiring activities. This level of expense supports our investments into organic growth strategies as well as data and technology initiatives.

從時間角度來看，我們預計第二季核心支出將更高，約 11.3 億美元。第三季和第四季這一水準應該相對穩定。考慮到收入驅動的薪酬以及預期的新招聘活動的節奏，可能會有一些變化。這種費用水準支持我們對有機成長策略以及數據和技術計劃的投資。

Slide 17 recaps our capital position. Common equity Tier 1 ended the quarter at 10.2%. Our adjusted CET1 ratio, inclusive of AOCI, was 8.5% and has grown 60 basis points from a year ago. 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%.

投影片 17 回顧了我們的資本狀況。普通股一級資本本季結束時為 10.2%。調整後的 CET1 比率（包括 AOCI）為 8.5%，比一年前增加了 60 個基點。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 18, credit quality is coming in as we expected and continues to perform very well. Net charge-offs were 30 basis points in Q1, 1 basis point lower than the prior quarter. They remain in the lower half of our through-the-cycle range of 25 to 45 basis points. Allowance for credit losses was stable at 1.97%. Nonperforming assets increased approximately 4% from the previous quarter to 60 basis points, while remaining below the prior 2021 level.

在投影片 18 中，信貸品質正如我們預期的那樣，並且繼續表現良好。第一季淨沖銷為 30 個基點，較上一季低 1 個基點。它們仍處於我們整個週期區間 25 至 45 個基點的下半部。信貸損失準備金穩定在1.97%。不良資產較上一季增加約 4%，至 60 個基點，但仍低於 2021 年之前的水準。

The criticized asset ratio also increased approximately 3% quarter-over-quarter, with sequential increases slowing quarter-over-quarter. The overall health of the portfolio is strong and tracking to our expectations.

受詬病的資產比率也較上季成長約3%，較上季成長率較快。投資組合的整體健康狀況良好，符合我們的預期。

Let's turn to our outlook for 2024. Overall, our guidance ranges are unchanged. On loans, we expect to drive accelerated growth from the first quarter, totaling between 3% and 5% on a full year basis. This will be driven by solid performance in our core as well as meaningful contribution from the new teams and market expansions.

讓我們展望 2024 年。在貸款方面，我們預計從第一季開始將推動加速成長，全年總額在 3% 至 5% 之間。這將由我們核心的穩健表現以及新團隊和市場擴張的有意義的貢獻所推動。

On deposits, we're keeping the overall range the same at between 2% and 4%. We do see it more likely to end up at a higher portion of that range based on our momentum and the traction we're seeing with deposit gathering.

在存款方面，我們將整體範圍保持在 2% 至 4% 之間。根據我們的動力和存款收集的吸引力，我們確實認為它更有可能最終達到該範圍的較高部分。

Net interest income is expected to be within a range of down 2% and up 2% on a full year basis. As I noted, we see NIM likely a few basis points lower than our earlier guidance. We project spread revenue to expand on a dollar basis from the Q1 level into the second quarter and throughout 2024. Fee growth strategies remain on track, and we continue to see core noninterest income growth of 5% to 7% for the full year.

預計全年淨利息收入將在下降2%至成長2%的範圍內。正如我所指出的，我們認為淨利差可能比我們先前的指導低幾個基點。我們預計，以美元計價的價差收入將從第一季水準擴大到第二季以及整個 2024 年。

Expense outlook is unchanged, expecting 4.5% core expense growth for the full year. Credit quality, as I mentioned, is tracking closely to our expectations, and we continue to expect full year net charge-offs between 25 and 35 basis points.

費用前景不變，預計全年核心費用將成長 4.5%。正如我所提到的，信貸品質與我們的預期密切相關，我們繼續預期全年淨沖銷將在 25 至 35 個基點之間。

With that, we'll conclude our prepared remarks and move to Q&A. 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. (Operator Instructions) Thank you.

謝謝，扎克。接線員，我們現在開始提問。 （操作員說明）謝謝。

(Operator Instructions) Our first question is coming from Manan Gosalia from Morgan Stanley.

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

So your comments on the NII guide were very thorough, so really appreciate that. I think -- so the lower end of your guide is now for 3 cuts. And I think your guide is a little bit more conservative on deposit betas than some of the other comments we've heard. So I was wondering if you can expand on that a little bit. Is that based on conversations you're having with customers? Or what's driving that?

您對 NII 指南的評論非常全面，非常感謝。我認為 - 所以你的指南的下端現在是 3 次切割。我認為您的指南在存款貝塔值方面比我們聽到的其他一些評論更為保守。所以我想知道你是否可以對此進行一些擴展。這是基於您與客戶的對話嗎？或者是什麼推動了這一點？

Sure, Manan. Thanks for the question. This is Zach. I'll take that. Broadly speaking, we're seeing the NIM outcome, but very similar to the view we had before, just as I mentioned, the sort of moderate tuning lower. And clearly, the biggest change in the environment over the last 3 months, as we gave guidance in January, was the expectation for much -- a much longer pause in this Fed posture before any rate reductions. And so at the margin, really, we're seeing slightly higher deposit funding costs and overall interest bearing liability costs.

當然，馬南。謝謝你的提問。這是札克。我會接受的。從廣義上講，我們看到了淨利差的結果，但與我們先前的觀點非常相似，正如我所提到的，適度調低。顯然，正如我們在 1 月給出的指導那樣，過去 3 個月環境的最大變化是人們對聯準會在降息之前的這種立場的暫停時間更長的預期。因此，實際上，我們看到存款融資成本和整體計息負債成本略有上升。

The other thing that's important, I'm trying to note this in the prepared remarks as well, is the deposit volumes are coming in very strong and slightly at the higher end of our prior expectations as well. And so that's contributing somewhat, although really good core funding clearly for -- with the accelerating loan growth over time.

另一件重要的事情是，我也在準備好的發言中試圖指出這一點，即存款量非常強勁，也略高於我們先前預期的上限。因此，儘管隨著時間的推移貸款成長加速，核心資金確實非常好，但這還是有所貢獻。

So that's really the driver. As we entered the quarter, and just to provide one last piece of color on that, as we entered the quarter, the market forward was for the first rate reduction to be in March. We always knew that, that was -- we took the -- that was likely not to be the case. But clearly, that was the forecast of the market broadly, and we are beginning to execute the early stages of down beta actions.

所以這確實是司機。當我們進入本季時，為了提供最後一點色彩，當我們進入本季時，市場預期首次降息將在 3 月進行。我們一直都知道，我們認為情況可能並非如此。但顯然，這是市場的整體預測，我們正開始執行早期階段的下調測試行動。

We've discussed shortening [CE] internal duration, changing other elements of our pricing throughout the quarter and, clearly, that reset. And so we've had to continue to be dynamic, as we would always be, in managing deposit pricing. And likely now, those more substantive downgrade actions were pushed further out.

我們已經討論了縮短[CE]內部持續時間、改變整個季度定價的其他要素，以及顯然的重置。因此，我們必須一如既往地在管理存款定價方面繼續保持活力。現在，那些更實質的降級行動可能被進一步推遲。

So that's really the biggest driver other than sort of the timing of when we'll begin to see more significant downgrade actions. Over time, we would expect to be just as effective going forward as we've been in the past. And we're not sure really just when will that occur and hence a few bps of additional funding costs here in 2024.

因此，除了我們開始看到更重大的降級行動的時間之外，這確實是最大的驅動因素。隨著時間的推移，我們希望未來能像過去一樣有效率。我們不確定這種情況何時會發生，因此 2024 年的額外融資成本會增加幾個基點。

Is any of that because you're also planning ahead of this accelerating loan growth that you're expecting?

這是否是因為您還在預期貸款成長加速之前進行了規劃？

It's a good question, Manan. The posture where these cuts (inaudible) here clearly of when will rate cuts [reviews]. And also, not only when was the first one happened, but what will be the expected trajectory by the market and by customers really thereafter.

這是個好問題，馬南。這些削減（聽不清楚）的姿態在這裡清楚地表明了何時會削減利率[評論]。而且，不僅要考慮第一次發生的時間，還要考慮市場和客戶此後的預期軌跡。

For us, we're very dynamic and granular in how we manage this to really optimize the next best unit of funding here. So continually thinking about when is that rate cut going to happen and obviously attempting to play in front of it. With that being said, we're talking about marginal tuning here and not to overplay it.

對於我們來說，我們在如何管理這一點上非常動態和細緻，以真正優化這裡的下一個最佳資金單位。因此，不斷地思考降息何時會發生，並顯然試圖在降息之前發揮作用。話雖如此，我們在這裡討論的是邊際調整，而不是誇大其詞。

If I could add, this is Steve, our commercial loan pipeline is very robust, and each month of the quarter has improved. So we are going to the second quarter with a very good healthy outlook. And as we think about our guidance for the year, we think, on the loan side, we're going to be closer to the top end, which is in heart of the consideration for adding the deposits at the rate that we're doing here at this earlier stage of the year, Manan. Thanks for the question.

如果我可以補充一下，這是史蒂夫，我們的商業貸款管道非常強勁，本季的每個月都有所改善。因此，我們將以非常良好的健康前景進入第二季。當我們考慮今年的指導時，我們認為，在貸款方面，我們將更接近高端，這是按照我們正在執行的利率增加存款的核心考慮因素今年早些時候，馬南。謝謝你的提問。

Our next question is coming from John Pancari from Evercore ISI.

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

Thanks for the color on the NII guide. So just to confirm again, so it does -- you did indicate that you are factoring in a higher for longer environment when all said and done in your outlook. But again, you maintain the NII guide of down 2% to up 2%.

感謝 NII 指南上的顏色。因此，再次確認一下，事實確實如此——您確實表明，當您在展望中說了一切並做了所有的事情時，您正在考慮一個更高、更長期的環境。但同樣，您維持 NII 指導值下降 2% 至上升 2%。

Is the primary reason for the maintaining that versus any upside bias would be is it mainly the deposit costs that you just discussed coming in higher? Or is there any other factor?

與任何上行偏見相比，維持這一觀點的主要原因是否主要是您剛才討論的存款成本上升？還是有其他因素？

That is the primary driver. So yes is the answer to that, seeing a little lower, a few basis points lower NIM, but incrementally somewhat stronger loan growth, those things are largely offsetting and continue to be the ultimate results in that guidance range.

這是主要驅動力。因此，答案是肯定的，淨利差稍微降低一些，但貸款成長逐漸強勁，這些因素在很大程度上抵消了這一影響，並繼續成為該指導範圍內的最終結果。

And importantly, the key thing for us is that trajectory, growing an interest income on a dollar basis out of the first quarter into the second quarter and continuing on to the third and fourth quarter. So the outcome is not going to be solidly expanding revenue growth and solidly expanding profit growth as well. So yes to the fundamentals of your question and the overall outlook generally unchanged.

重要的是，對我們來說關鍵是這條軌跡，以美元為基礎的利息收入從第一季到第二季不斷增長，並持續到第三和第四季。因此，結果不會是營收成長和利潤成長的穩定擴大。所以，你的問題的基本面是肯定的，整體前景總體上沒有變化。

Got it. Okay. And then separately, back to the loan growth topic. Steve, you just discussed it that you've got confidence in the outlook, particularly given your pipeline. Maybe can you talk about where demand stands now, where utilization is now? And what type of inflection do you see here? Because it seems like you've got confidence in the back half strengthening. I mean, what anecdotal data that you have to kind of support that acceleration?

知道了。好的。然後分別回到貸款成長話題。史蒂夫，您剛剛討論過您對前景充滿信心，特別是考慮到您的管道。也許您能談談現在的需求狀況和使用率嗎？您在這裡看到什麼類型的變化？因為看起來你對後半場的強化充滿信心。我的意思是，有哪些軼事數據可以支持這種加速？

Thanks, John. We see the commercial pipeline for the second quarter, particularly in the high probability and close level to be very, very good, very strong relative to the last 5 quarters. So as I said, each month has improved in the first quarter. Second quarter strength is obvious now at this stage. We're also seeing good business banking loan growth, and we have the benefit of these new initiatives, none of which have bolstered they're carrying.

謝謝，約翰。我們看到第二季的商業管道，特別是在高機率和接近水平方面，相對於過去 5 個季度來說非常非常好、非常強勁。正如我所說，第一季每個月都有所改善。現階段第二季的實力顯而易見。我們也看到商業銀行貸款的良好成長，我們受益於這些新舉措，但這些舉措都沒有支持他們的發展。

So the 3 new initiatives, especially banking last year, and the Carolinas off to a really good start. Texas was there a couple of weeks ago. We've got a great team there as well. All of those investments will bolster our activities throughout the year.

因此，這三項新舉措，尤其是去年的銀行業舉措，以及卡羅萊納州取得了良好的開端。德克薩斯州幾週前就在那裡。我們那裡也有一支很棒的團隊。所有這些投資都將支持我們全年的活動。

And then as you know, we've got one of the largest finance companies in the country. That tends to be somewhat seasonal fourth quarter. So those would be a combination of factors that give us a lot of confidence that we'll be at or near the upper end of our guidance for the full year.

如您所知，我們擁有全國最大的金融公司之一。第四季往往有一定的季節性。因此，這些因素的結合使我們充滿信心，我們將達到或接近全年指導的上限。

Our next question today is coming from Scott Siefers from Piper Sandler.

今天我們的下一個問題來自 Piper Sandler 的 Scott Siefers。

I kind of wanted -- I wanted to revisit the margin as well. So on the deposit pricing, is it possible to make sort of a broad comment about -- is this sort of something that you're seeing and reflecting kind of market pricing pressures? Or would you say you're more on sort of the leading?

我有點想要──我也想重新檢視利潤。那麼，關於存款定價，是否可以做出廣泛的評論——您所看到的這種情況是否反映了市場定價壓力？或者你會說你更傾向於領先？

Because it sounds like we're trying to support the loan growth, which is obviously a very positive differentiated factor. But are you all kind of leading with pricing on the deposit side to fund that growth? Or what does the competitive dynamic look like as well?

因為聽起來我們正在努力支持貸款成長，這顯然是一個非常正面的差異化因素。但你們是否都在存款方面主導定價來為這種增長提供資金？或者說競爭動態是什麼樣的？

Yes. Great question, Scott. This is Zach. I'll take it. I would characterize the competitive intensity of the market as generally consistent today with how it was at this time last quarter. So I don't think there's any substantive change. It remains a competitive market, and clients are clearly aware of rate -- and the competitive rate environment on the consumer, the small business (inaudible). So it's a transparent market.

是的。好問題，史考特。這是札克。我要買它。我認為目前市場的競爭強度與上季此時的競爭強度基本一致。所以我不認為有任何實質的改變。它仍然是一個競爭激烈的市場，客戶清楚地意識到費率以及消費者和小型企業的競爭費率環境（聽不清楚）。所以這是一個透明的市場。

I think what has happened -- part of what we're seeing is, and I'm giving you guidance on, is not just what's happening right now in the market, but the outlook for the whole year. And so that's really, I think, (inaudible) in terms of these comments is where as before, there was a fairly strong conviction of the marketplace. And even our prior guidance ranges had the first cuts beginning somewhere between March and August.

我認為已經發生的事情——我們所看到的部分情況，我給你們的指導，不僅僅是市場目前正在發生的事情，而是全年的前景。因此，我認為（聽不清楚）就這些評論而言，與以前一樣，市場對市場抱持相當強烈的信念。甚至我們之前的指導範圍也從三月到八月之間開始首次下調。

Clearly, that time frame where cuts has been pushed out. And so the period of time before we can begin to manage substantive time (inaudible) has just been extended. And that's really the main driver here.

顯然，削減的時間框架已經被推遲。因此，我們可以開始管理實質時間（聽不清楚）之前的時間剛剛延長。這確實是這裡的主要驅動力。

I think the -- our pricing strategy is pretty much the same, which is continue to price the -- in competitive ways, but not lead the market, to be clear, and really drive the fundamentals of deposit growth from customer acquisition.

我認為，我們的定價策略幾乎是一樣的，即繼續以有競爭力的方式定價，但不引領市場，明確地說，並真正透過客戶獲取推動存款成長的基本面。

We talked about 2% primary bank relationship growth in consumer, 4% in business banking, growing on the commercial side as well. And so that's the underpinning -- the pricing strategy is really designed to ensure that there's fair and appropriate pricing as we got on those deposits.

我們談到消費者的主要銀行關係成長了 2%，商業銀行業務成長了 4%，商業方面也在成長。這就是基礎——定價策略的真正目的是確保我們對這些存款有公平和適當的定價。

Next question is coming from Steven Alexopoulos from JPMorgan Chase & Company.

下一個問題來自摩根大通公司的 Steven Alexopoulos。

Not to beat a dead horse on the net interest income guidance, but last quarter, with 3 cuts that got us to the high end of the range, and now 3 cuts get us to the low end of the range. And I'm somewhat confused.

不是為了在淨利息收入指導上擊敗對手，而是在上個季度，3 次削減使我們達到了該範圍的高端，而現在 3 次削減使我們達到了該範圍的低端。我有點困惑。

Zach, I always think your hedge fund magic keeps us relatively stable over short periods of time. I'm a little confused why 3 cuts now has put us down 2% versus up 2% last quarter.

札克，​​我一直認為你的對沖基金魔力讓我們在短時間內保持相對穩定。我有點困惑為什麼現在 3 次削減使我們下降了 2%，而上個季度則上升了 2%。

Yes. Good question. Appreciate it, and I think what I'll just bring you back to is the sort of 2 key things here. Overall, the NIM outlook for us in both scenarios is a few basis points lower, mainly as a function of the timing of when rate reductions will begin and when we'll see substantive downgrade action to somewhat higher funding cost environment than we expected, and that was the main driver.

是的。好問題。感謝它，我想我會讓你回到這裡的兩件關鍵事情。整體而言，在這兩種情況下，我們的淨利差前景均較低幾個基點，主要取決於何時開始降息，以及何時我們將看到實質降級行動，以適應比我們預期略高的融資成本環境，以及這是主要的驅動力。

Second thing I would say is the 4 key factors for us that are driving them in this [year] remain the same. The biggest positive factor is fixed asset repricing. We try to share in the prepared remarks, we expect to see about $4 billion quarterly repricing of fixed assets, which should drive substantive benefit on the order of between 10 and even 12 or 13 basis points, depending on how the belly of curve maintains here over the course of this year.

我要說的第二件事是，今年推動我們發展的 4 個關鍵因素保持不變。最大的利多因素是固定資產重新定價。我們嘗試分享準備好的評論，我們預計固定資產季度重新定價約為 40 億美元，這將帶來 10 甚至 12 或 13 個基點之間的實質性收益，具體取決於曲線腹部如何保持在這裡今年以來。

The second positive factor is a gradual reduction to the amount of hedge drag we've got in the NIM. In Q1, we had 16 basis points of hedge drag, and I expect to see something between 5 to up to 8 to maybe even 10 basis points, depending on how the curve moves here over the course of the rest of this year until Q4. Those are the 2 biggest positive factors.

第二個正面因素是淨利差中的對沖阻力逐漸減少。在第一季度，我們有 16 個基點的對沖阻力，我預計會出現 5 到 8 甚至 10 個基點之間的情況，這取決於曲線在今年剩餘時間內直到第四季度的走勢。這是兩個最大的正面因素。

The other 2 factors are what's going on with variable yields and what's going on with funding costs. Those are largely offsetting each other in both of the -- those are moving off in the opposite direction, to be clear, in either a higher rate cut or a lower rate cut scenario. And those are modestly net negative for the full year that would offset those positives and keep the overall NIM in the generally flat to rising position from here. So none of that has really changed.

另外兩個因素是變動收益率的情況和融資成本的情況。這些在很大程度上相互抵消——明確地說，無論是在更高的降息還是更低的降息情況下，這些都朝著相反的方向發展。這些對全年來說是適度的淨負數，這將抵消這些正數，並使整體淨利差保持在從現在開始基本持平到上升的位置。所以這一切都沒有真正改變。

Maybe the last thing I'll say, a third point, is that all the modeling we're doing continues to indicate that a higher rate scenario overall, all things equal, drives a higher NIM for us. Clearly, the -- how this plays out over such a short period of time, 3 quarters, will be -- really depend on the shape and trajectory and timing and everything.

也許我要說的最後一件事，即第三點，是我們正在做的所有建模繼續表明，在所有條件相同的情況下，總體較高的利率情景將為我們帶來更高的淨息差。顯然，在如此短的時間內（三個季度）如何發揮作用，實際上取決於形狀、軌跡、時機等等一切。

But that's the best we can do. And I think the guidance we're trying to give here with this range of scenarios is designed to allow us to give you stability in terms of the revenue guidance, which ultimately is the most important thing.

但這是我們能做的最好的事。我認為我們在這裡嘗試針對這一系列場景提供的指導旨在讓我們能夠為您提供收入指導方面的穩定性，這最終是最重要的事情。

Got it. And Zach, if we put all this together, you're seeing NII bottomed in the first quarter, but I didn't hear you say NIM bottomed in the first quarter. Does that imply NIM has not bottomed in the first quarter?

知道了。扎克，如果我們把所有這些放在一起，你會看到 NII 在第一季觸底，但我沒有聽到你說 NIM 在第一季觸底。這是否意味著淨利差尚未在第一季觸底？

I expect to see NIM bouncing around these levels or rising over the course of the rest of the year, depending on how the scenario plays out and for that kind of flat to rising NIM, coupled with accelerated loan growth to drive accelerating net interest income on a dollar basis out of the first quarter into the second quarter of growth and then continuing to grow into the third and the fourth quarter.

我預計淨利差將在今年剩餘時間內圍繞這些水平反彈或上升，具體取決於情況如何發展，以及淨息差是否會持平或上升，加上貸款加速增長，推動淨利息收入加速增長。計價，擺脫第一季進入第二季的成長，然後繼續成長進入第三和第四季。

Got it. Okay. If I just -- one separate question. On the noninterest-bearing deposits, balance is down pretty sharp, average at period end. We're seeing some of your peers showing in February and March good stability in those balances. Did you guys see that as well? Or did you see balances decline through the quarter?

知道了。好的。如果我只是——一個單獨的問題。無利息存款餘額下降幅度相當大，達到期末平均。我們看到你們的一些同行在二月和三月的餘額方面表現出良好的穩定性。你們也看到了嗎？或者您發現本季餘額有所下降？

Balances were modestly declining through the quarter. As we look at that, we would see a few things. One is the trajectory of dollars of noninterest bearing actually decelerating in terms of their mix shifts.

本季餘額略有下降。當我們審視這一點時，我們會看到一些事情。一是無息美元的走勢實際上在其組合變化方面正在減速。

Secondly, for the most part, all of the mix shifts that we think will happen within consumer has happened. And where there is continued drift in Q1 is really in the business and commercial side.

其次，在大多數情況下，我們認為消費者內部會發生的所有組合轉變都已經發生了。第一季持續變化的地方實際上是在業務和商業方面。

Another point would be we expect the noninterest-bearing mix shift mix as a percentage to continue to stabilize in the high teens over the course of this year. It was 19.4% as of Q1.

另一點是，我們預計今年無息組合變化的百分比將繼續穩定在高位。截至第一季度，該比例為 19.4%。

And then the last thing I would say is as you think about that percentage, it's very notable to measure that percentage if overall deposits are shrinking versus if they are growing. And for us, overall, the products are growing strongly as we've said. So the mix is lifting, but the dollars are really the most important thing, and that we see stabilizing here over the course of the next couple of quarters.

我要說的最後一件事是，當你考慮這個百分比時，如果整體存款正在萎縮，而如果整體存款正在成長，那麼衡量這個百分比是非常值得注意的。對我們來說，總體而言，正如我們所說，產品正在強勁成長。因此，混合情況正在改善，但美元確實是最重要的，我們看到在接下來的幾季中美元將趨於穩定。

Next question today is coming from Ebrahim Poonawala from Bank of America.

今天的下一個問題來自美國銀行的 Ebrahim Poonawala。

I guess, I just wanted to go back to something. Steve, you mentioned -- I think in your prepared remarks, you said that the outlook and the economy is more conducive for growth. You (inaudible) is probably the most upbeat I've heard this -- over the last week.

我想，我只是想回去做點什麼。史蒂夫，你提到——我認為在你準備好的演講中，你說前景和經濟更有利於成長。你（聽不清楚）可能是我上週聽過的最樂觀的人。

If you don't mind spending some time in terms of breaking down what you're seeing from customers in terms of strength and loan demand looking into 2Q and beyond. And how much of this strength is just because of the proactive actions Huntington has taken to hire bankers in Carolinas, Texas? Would love some color around both those aspects.

如果您不介意花一些時間來分析您從客戶那裡看到的第二季度及以後的實力和貸款需求。這種優勢有多少是因為亨廷頓採取了積極主動的行動，聘請了德州卡羅萊納州的銀行家？希望在這兩方面都有一些色彩。

Thank you, Ebrahim. The economy, we also do the aggregate metrics that are released. There's an underlying strength. We're seeing that, particularly because we've been proactive with our lending activities. Through the last year, the core is performing well. We're getting growth in our auto book, our distribution, finance, in particular, our business bank. So very, very localized levels, principally here in the Midwest.

謝謝你，易卜拉欣。經濟方面，我們也統計了發布的總體指標。有一種潛在的力量。我們看到了這一點，特別是因為我們一直積極主動地進行貸款活動。去年，核心表現良好。我們的汽車預訂、分銷、金融，特別是我們的商業銀行正在成長。所以非常非常本地化，主要是在中西部。

We're also getting growth in a number of our other areas. And these new verticals that have been added, they've all closed well. They've all generated lending activity and other activity. And the Carolina expansion and Texas expansion are delivering results and look very promising to us.

我們在其他一些領域也取得了成長。這些新增加的垂直領域都成效良好。它們都產生了貸款活動和其他活動。卡羅萊納州的擴張和德克薩斯州的擴張正在取​​得成果，對我們來說看起來非常有希望。

So we've positioned the bank, both with the core activities and these incremental investments, I think, to outperform peers in loan growth and perhaps in a number of other respects as well, certainly, through this year and potentially beyond.

因此，我認為，我們已經將銀行的核心活動和增量投資定位為在貸款成長方面超越同行，也許在許多其他方面也優於同行，當然，今年乃至以後。

The pipeline activity I referenced earlier is very promising. And again, the strength of the first quarter, with every month improving, gives us a lot of confidence. Our investment banking activity, Capstone related, their pipeline is bigger than they've ever had, as an example. So we've got a lot of opportunity in front of us. So now, we have to deliver.

我之前提到的管道活動非常有前途。再說一次，第一季的強勁勢頭，每個月都在進步，給了我們很大的信心。舉個例子，我們的投資銀行活動，與凱普斯通相關，他們的管道比以往任何時候都更大。所以我們面前有很多機會。所以現在，我們必須交付。

That was helpful. And Zach, a couple of follow-ups for you. One, apologies on NII. I feel like I'm more confused after some of this back and forth. Should we expect, if we don't get any rate cuts or maybe just one cut, NII trends towards up 2%? Is that the right takeaway?

這很有幫助。扎克（Zach），為您提供一些後續報導。一、對NII表示歉意。經過一番來回，我覺得自己更困惑了。我們是否應該預期，如果我們沒有任何降息或只是一次降息，NII 會上漲 2%？這是正確的外帶嗎？

It will really be a (inaudible) there. So I think the outcome will be somewhere between that range of EV. When we give these ranges, we try to generally [block] our plan and land in the middle of it. But of course, there's a bit of variance and just normal variability that's hard to forecast with such decision. So that's the expectation.

它真的會在那裡（聽不清楚）。所以我認為結果將介於電動車的範圍之間。當我們給出這些範圍時，我們通常會嘗試[阻止]我們的計劃並落在其中。但當然，這樣的決定會存在一些差異和正常的變化，很難預測。這就是期望。

I think we'll see, as I noted and just to clarify, a flat rising NIM, a slightly higher NIM in the higher rate scenario, albeit with different drivers and really coupling that with accelerating loan growth will drive dollars out of the level we've seen in Q1, up into Q2 and beyond and to land for a full year somewhere in the middle of that range.

我認為，正如我所指出的，只是為了澄清，我們會看到淨利差平穩上升，在利率較高的情況下，淨息差略有上升，儘管有不同的驅動因素，而且真正將其與加速的貸款成長結合起來，將推動美元脫離我們的水平。

All right. So multiple scenarios, middle of the range. And any scenario where this could exceed the up 2%?

好的。所以多種場景，範圍的中間。任何情況下漲幅都可能超過 2%？

Certainly, it's possible. We want to see how the cut -- the rate environment plays out here. I think, really, at this point, we're probably parsing the precision more than -- more than it is reasonable. It's still a pretty moving target in terms of where the yield curve is now. But I think we'll land somewhere in that range is our best [next step].

當然，這是可能的。我們想看看降息——利率環境在這裡如何發揮作用。我認為，實際上，在這一點上，我們解析的精確度可能超出了合理範圍。就目前殖利率曲線的位置而言，它仍然是一個相當移動的目標。但我認為我們最好的[下一步]將落在這個範圍內的某個地方。

(Operator Instructions) Our next question is coming from Ken Usdin from Jefferies.

（操作員說明）我們的下一個問題來自 Jefferies 的 Ken Usdin。

And thanks for that incremental slide on the swaps detail. I'm wondering if you could just kind of help us understand, as we get through the end of this year, both in terms of what that swaps impact looks like and as important that fixed rate repricing, how should we think about those kind of combined benefits as we get out of '24 and think about '25?

感謝關於互換細節的增量幻燈片。我想知道您是否可以幫助我們理解，在我們度過今年年底的時候，無論是在掉期影響方面，還是在固定利率重新定價方面，我們應該如何考慮這些問題當我們走出24 世紀並思考25 世紀時，綜合效益如何？

Yes. It's a terrific question. Just maybe I'll say a few things on that. One is the fixed asset repricing benefit that we saw, and I mentioned earlier, so between 10, 11, 12, 13 basis points upside this year from that $4 billion turning quarterly.

是的。這是一個很棒的問題。也許我會就此說幾句話。一是我們看到的固定資產重新定價收益，我之前提到過，今年季度收益比 40 億美元上漲了 10、11、12、13 個基點。

Our modeling is that will continue on into 2025 at kind of a similar pace. It's really a very long-term phenomenon, and that's going to be a significant support to NIM as we get into 2025.

我們的模型預計，這種情況將以類似的速度持續到 2025 年。這確實是一個非常長期的現象，當我們進入 2025 年時，這將成為對 NIM 的重要支持。

On the hedge drag,factor within NIM, that's 16 bps in Q1, reducing down by something like 5 to 8 basis points and as much as 10, depending on the rate scenario lower by the end of Q4. That should also continue on into the early part of 2025 as well, probably get to about neutral position if there are some rate reductions.

就 NIM 內的對沖拖累因素而言，第一季為 16 個基點，下降幅度約為 5 至 8 個基點，最高可達 10 個基點，取決於第四季末利率下降的情況。這種情況也應該會持續到 2025 年初，如果有一些降息，可能會達到中性立場。

And if you just look at the rate curves -- all the rate curve, there is an expectation in the forward curve at this point that there would be, in fact, reductions, either in the back half of this year, certainly into the early part of next year. And so if that comes to pass, then we'll see that 16 basis points sort of fully resolved by the middle of 2025. If there aren't rate reduction, then you'll see less of that hedge drag coming back, obviously, then because of the different environment overall, regardless.

如果你只看利率曲線——所有的利率曲線，在這一點上，遠期曲線預計實際上會出現降息，無論是在今年下半年，還是在年初。因此，如果這種情況成為現實，那麼我們將看到到 2025 年中期，16 個基點的問題將得到完全解決。不管。

The other thing I'll just say, you didn't ask it, but I will share is, if you look at the sum total of all of our hedging activities, which, as you know, are always designed to protect capital against uprate scenarios, protect NIM in downgrade scenarios. That chart that I illustrated in the prepared remarks has a kind of a gradual shifting of that exposure as you get into and throughout 2025.

我要說的另一件事，你沒有問，但我要分享的是，如果你看看我們所有對沖活動的總和，正如你所知，這些活動總是旨在保護資本免受利率上漲的影響場景，在降級場景下保護NIM。我在準備好的評論中展示的圖表顯示，隨著進入 2025 年以及整個 2025 年，這種風險敞口會逐漸改變。

The net result of that should be that by the end of 2025, asset sensitivity should be about 1/3 less. And so that's sort of the intent of that program more broadly from an interest rate risk and asset sensitivity management perspective.

最終結果應該是，到 2025 年底，資產敏感度應降低約 1/3。因此，從利率風險和資產敏感性管理的角度來看，這就是該計劃的更廣泛的意圖。

Okay. Cool. And then my follow-up, I'll just separate the -- just the fixed rate repricing on the asset side. So we know about the meaningful health that you get this year. But then how does that layer in, in terms of incremental fixed rate benefit that happens into next year?

好的。涼爽的。然後我的後續行動，我將把資產方面的固​​定利率重新定價分開。所以我們知道您今年獲得的有意義的健康。但是，就明年發生的增量固定利率收益而言，這一點如何反映？

Yes. So as I noted a moment ago, I think it's about the same benefit as we go out into 2025, and that's a fairly similar churn of quarterly volumes and continue to see the belly of the curve that largely always goes out to the price significantly higher than the historical rate of those assets.

是的。因此，正如我剛才指出的那樣，我認為這與我們進入 2025 年時的收益大致相同，季度交易量的變動相當相似，並且繼續看到曲線的腹部，基本上總是導致價格顯著上漲比這些資產的歷史利率。

Over time, of course, you'll begin to see that benefit reduce on a sequential basis. And at some point, it starts to (inaudible), but likely not until the latter part of '25 at the earliest at this point based on how the curve is shaping up.

當然，隨著時間的推移，您會開始看到這種好處依次減少。在某個時候，它會開始（聽不清楚），但根據曲線的形成情況，最早可能要到 25 年下半年才會出現。

Next question today is coming from Jon Arfstrom from RBC Capital Markets.

今天的下一個問題來自加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Jon Arfstrom。

Can you touch a little bit on the fee income outlook and what you expect there? It seems like you're implying a bit of a step-up in that based on what you saw in the first quarter. But talk a little bit about what you're seeing there and then confidence in hitting that midpoint of the guide.

您能談談費用收入的前景以及您的期望嗎？根據您在第一季看到的情況，您似乎暗示在這方面有所進步。但談談你在那裡看到的東西，然後有信心達到指南的中點。

Yes. Q1 core fees grew about 3% year-over-year, and our guidance for the full year is between 5% and 7% on a full year. So that clearly implies we're going to see an acceleration of fee income and acceleration on a year-over-year basis, as we (inaudible) this year and high confidence to achieve that.

是的。第一季核心費用年增約 3%，我們對全年的指引在 5% 至 7% 之間。因此，這顯然意味著我們將看到費用收入的加速和同比的加速，因為我們今年（聽不清楚）並且對實現這一目標充滿信心。

The core drivers remain the same, as what we've discussed on many prior occasions, capital markets, payments and wealth management. If you look at sort of the trends we're seeing right now and what the performance was in the first quarter, payments revenue was up 7% in the first quarter. Wealth revenue is up 10%. In capital markets, we saw commercial banking-related revenues that kind of around 2/3 of the capital markets activities that are really highly correlated to the pace and volume for banking.

正如我們之前多次討論的那樣，核心驅動因素保持不變：資本市場、支付和財富管理。如果你看看我們現在看到的趨勢以及第一季的表現，你會發現第一季的支付收入成長了 7%。財富收入成長10%。在資本市場中，我們看到與商業銀行相關的收入約佔資本市場活動的 2/3，這些收入與銀行業的步伐和數量確實高度相關。

That grew sequentially into the first quarter with the second sequential quarter of growth there. And I think one of the things that will power continued growth in capital markets from here is the fact that commercial loan production is likewise accelerating, as Steve noted earlier.

這一數字在第一季連續成長，第二季也持續成長。我認為，正如史蒂夫之前指出的那樣，商業貸款生產也在加速，這將推動資本市場持續成長。

Advisory revenues were really beginning to recover well in the back half of 2023, but typically seasonally lower in Q1 for us in our focus in middle-market advisory. So we did see those advisory revenues lower to the first quarter. But likewise, our expectation for that is for continued expansion into the remaining part of this year.

諮詢收入在 2023 年下半年真正開始復甦，但由於我們專注於中端市場諮詢，因此第一季的諮詢收入通常會季節性下降。因此，我們確實看到這些諮詢收入低於第一季。但同樣，我們對此的期望是在今年剩餘時間內繼續擴張。

Pipelines look very good, very high quality, great firms that have contracted with us to look for M&A. And so those are really the drivers from here, payments continuing to perform, wealth continuing to execute the strategy and then capital markets driving acceleration as well. And overall continue to feel really good about landing somewhere on that full year growth range.

管道看起來非常好，品質非常高，與我們簽約尋找併購的偉大公司。因此，這些確實是這裡的驅動因素，支付繼續執行，財富繼續執行該策略，然後資本市場也推動加速。總體而言，對於達到全年增長範圍的某個位置，我們繼續感覺非常好。

Okay. Good. Helpful. I won't go back to net interest income, but I do want to ask about credit. Your numbers obviously look good, but anything you want to flag internally that you're seeing? And I'm curious also what you're seeing externally from a credit point of view.

好的。好的。有幫助。我不會再談淨利息收入，但我確實想問一下信貸問題。您的數字顯然看起來不錯，但是您想在內部標記您所看到的任何內容嗎？我也很好奇你從信用的角度看到的外在情況。

This is Brendan. I'll take that one. As you sort of noted in your question that the story of the quarter is still [weak] across all of the credit metrics, pretty much in line with where we reported in the fourth quarter or seasonally adjusting when you think about delinquencies. Looking back at first quarter of last year, we're right in line, and we feel really good about the position that we're sitting in right now.

這是布倫丹。我會接受那個。正如您在問題中指出的那樣，本季度的情況在所有信用指標上仍然[疲軟]，與我們在第四季度報告的情況或考慮拖欠問題時進行季節性調整的情況基本一致。回顧去年第一季度，我們的情況是正確的，我們對現在所處的位置感覺非常好。

If there's the one place that everybody continues to focus on and talk about it, and we're highly focused on it ourselves, is office in the commercial real estate side. But as we've talked about in the past, we have one of the smaller books relative to our office portfolio, and we have a decent reserve against it. So we -- while we're watching it and actively managing it, we feel very well protected against it at this point.

如果說有一個地方是大家持續關注和談論的，而且我們自己也高度關注的話，那就是商業地產方面的辦公室。但正如我們過去談到的，我們有一本相對於我們的辦公室投資組合較小的書籍，並且我們有相當多的儲備。因此，當我們正在觀察並積極管理它時，我們感覺目前已經得到了很好的保護。

Just to add to that. Thanks, Brendan. We've reduced the office portfolio by about $500 million over the course of the last 4 quarters. And our largest loan is $40 million, the average of $7 million-ish. So it's very granular, and it gets a lot of attention. And we expect it will continue to reduce throughout this year.

只是補充一下。謝謝，布倫丹。在過去 4 個季度中，我們將辦公室投資組合減少了約 5 億美元。我們最大的貸款是 4000 萬美元，平均約 700 萬美元。所以它非常細粒度，並且引起了很多關注。我們預計今年全年這一數字將繼續減少。

Okay. Good. If I can ask one more, I'm going to violate the one and one follow-up. But just bigger picture, there's been this myopic focus on the margin and net interest income. Do you guys -- do you feel incrementally better or worse about that plus or minus 2% guide?

好的。好的。如果再問一問，我就違反一一後續了。但從更大的角度來看，人們對利潤率和淨利息收入的關注卻是短視的。你們對正負 2% 的指導感覺是好還是壞？

Because on one hand, we're thinking about a lower margin in the very near term, and I get that. But it's seems like it's higher funding cost to fund loan growth, which seems to be at the higher end of it. So I guess, the question is with some of these new developments, do you feel better or worse about that higher or lower end of the net interest income guidance? I think that would help people.

因為一方面，我們正在考慮在短期內降低利潤率，我明白這一點。但為貸款成長提供資金的融資成本似乎更高，這似乎處於較高水平。所以我想，問題是，對於其中一些新的發展，您對淨利息收入指導的較高或較低端感覺更好還是更差？我認為這對人們有幫助。

Yes. Great question, Jon. I'll take that one. Look, (inaudible). First is I feel really good about the overall performance of the business. For us, it's about executing long-term growth, long-term value creation, and Q1 is (inaudible) really well. We've seen confidence in loan growth accelerating, great core funding.

是的。好問題，喬恩。我會接受那個。看，（聽不清楚）。首先，我對公司的整體業績感覺非常好。對我們來說，這是關於執行長期成長、長期價值創造，第一季（聽不清楚）非常好。我們看到對貸款成長的信心正在加速，核心資金也很大。

And therefore, the confidence in being within that range is very strong. At the margin, my revenue outlook is a touch lower than was the case before. And -- but I think we're in a range of tuning at this point, Jon. And hence, we should not overly parse this somewhere in that range, typically try to land in the middle of the ranges that we're giving.

因此，處於該範圍內的信心非常強。從邊際角度來看，我的收入前景比以前低。而且——但我認為我們目前正處於一系列調整之中，喬恩。因此，我們不應該在該範圍內的某個地方過度解析它，通常嘗試落在我們給出的範圍的中間。

Next question is coming from Peter Winter from D.A. Davidson.

下一個問題來自 D.A. 的 Peter Winter。戴維森。

I wanted to follow up -- I want to follow up on Jon's question just on credit. If I look at the ACL ratio, it's at the top end of the peers, and credit is really holding in and you feel good about the economy. How are you thinking about reserving going forward? Is the plan to keep the ACL ratio fairly steady and just kind of support loan growth?

我想跟進——我想以信用方式跟進喬恩的問題。如果我看一下 ACL 比率，它處於同業的頂端，信貸確實在持續，你對經濟感覺良好。您如何考慮未來的預訂？該計劃是否會保持 ACL 比率相當穩定且只是支持貸款成長？

Peter, it's Brendan. I'll take a chug at that. You're noting the stability quarter-over-quarter, and that's accurate. I think, as we look forward, it's really a fact specific as to how the ACL coverage will move quarter-over-quarter. As you know, we take into account the modeling of our economic scenario as the view of credit at that time as well as the loan growth, as you referenced in your question.

彼得，我是布倫丹。我會大吃一驚。您注意到季度環比的穩定性，這是準確的。我認為，正如我們展望的那樣，ACL 覆蓋率將如何逐季度變化確實是一個具體事實。如您所知，正如您在問題中提到的那樣，我們考慮了對經濟情景的建模，即當時的信貸觀點以及貸款成長。

We put all of that into the mix to sort of drive out of our modeling what we believe the right level of coverage is. And so it's harder for us to -- for anybody, frankly, to -- in this environment to really give any strong guidance as to which way the ACL will move, as it's really important. It's a quarterly specific metric these days and the way it's run. So it's hard for me to come out and say, "We think it will do this, and we think it will do that."

我們將所有這些都混合在一起，以從我們的模型中得出我們認為正確的覆蓋水平。因此，坦白說，對於任何人來說，在這種環境下，我們都很難真正就 ACL 的移動方式提供強有力的指導，因為這非常重要。如今，它是一個季度特定指標及其運作方式。所以我很難出來說：“我們認為它會這樣做，我們認為它會這樣做。”

Peter, this is Steve. I'll just add to that. It's -- we've tried to be conservative with reserves over the years. We believe we're in that posture today, and we expect to grow loans above [peer] this year and potentially beyond with the investments on these new businesses and regions we've made.

彼得，這是史蒂夫。我就補充一下。多年來，我們一直試圖在儲備方面保持保守。我們相信我們今天就處於這種態勢，我們預計今年的貸款成長將超過[同業]，並且可能會超過我們對這些新業務和地區的投資。

And there's still a lot of uncertainty about where rates are going to go, where they're going to move, the geopolitical tension, the uncertainties that can spun from elections, both ours and other countries. So we're just trying to be conservative at this stage. Should we continue to perform at the level we are, there will be reserve recapture at some point.

關於利率走向、地緣政治緊張局勢以及我們和其他國家的選舉可能帶來的不確定性，仍然存在著許多不確定性。所以我們現階段只是試著保持保守。如果我們繼續保持現有水平，儲備金將在某個時候重新奪回。

Okay. Just one quick follow-up. Just that comment that you're feeling better about loan growth, how much of the loan growth acceleration is new markets versus just core strength? And is part of that positive outlook given the early success that you're seeing on the new initiatives?

好的。只需一個快速跟進。只是您對貸款成長感覺更好的評論，新市場與核心實力相比，貸款成長加速有多少？鑑於您在新措施上看到的早期成功，這種積極前景是否是一部分？

This is Zach. I'll take that one. If you look at the full year loan growth outlook that we've got, between 3% and 5%, about 60% of that growth, we think, will come from the core and about 40% from these new organic expansion areas we've got. Within -- and the mix of the overall company's growth will be weighted toward commercial, with consumer also growing pretty well. So that's the kind of broad answer in terms of the magnitude of them.

這是札克。我會接受那個。如果你看看我們的全年貸款成長前景，我們認為成長在 3% 到 5% 之間，其中約 60% 將來自核心業務，約 40% 來自我們新的有機擴張領域。其中，整個公司的成長將偏向商業成長，消費者也成長得相當不錯。這就是就其規模而言的廣泛答案。

And really, the other point is, yes, the early traction is really very positive. We're seeing customers already being acquired, loans being booked, and the pipelines across all of the 5 new areas of focus, the 3 commercial verticals, Carolinas and Texas, the pipeline cumulatively is approaching $2 billion of loans and also very significant deposit pipeline.

事實上，另一點是，是的，早期的牽引力確實非常積極。我們看到客戶已經被獲取，貸款正在被預訂，並且所有5 個新的重點領域、3 個商業垂直領域（卡羅萊納州和德克薩斯州）的管道已累計接近20 億美元的貸款以及非常重要的存款管道。

Remember, these are -- tend to be full relationship strategies that are gathering loans, but also deposits, also fee income businesses in capital markets, in payments, in treasury management. So quite good early traction here. We're obviously starting from a low base, as Steve mentioned, so we're going to see that build here over the course of time.

請記住，這些往往是全面的關係策略，不僅收集貸款，還收集存款，以及資本市場、支付和財務管理中的收費收入業務。所以這裡的早期牽引力非常好。正如史蒂夫所提到的，我們顯然是從低基礎開始的，所以隨著時間的推移，我們將看到這裡的建設。

The last thing I'll say is, of those 5 of the most significant contributors in 2024, we expect to be the fund finance vertical in the Carolinas. Over time, the others will also be very significant, particularly in Texas. But just in terms of the early momentum that we're seeing and based on when they started and were staffed, those 2 will be most significant for '24.

我要說的最後一件事是，在 2024 年這 5 個最重要的貢獻者中，我們預計將成為卡羅來納州的基金金融垂直領域。隨著時間的推移，其他地區也將變得非常重要，特別是在德克薩斯州。但就我們所看到的早期勢頭而言，並根據他們開始和人員配備的時間，這兩個將是 24 年最重要的。

And just one last final. Does the core loan growth assume a pickup in line utilization?

還有最後一場決賽。核心貸款成長是否假設線路利用率上升？

Not in substance. So if you think about kind of the 3 big areas that we have, outstanding lives, in the broad middle market, commercial lines, we saw that tick-up just a tiny bit into the first quarter, pretty flat. And it's not our expectation that, that will change substantively from here.

實質上不是。因此，如果你考慮我們擁有的三大領域，即出色的生活、廣闊的中間市場、商業產品線，我們會看到第一季的情況略有上升，相當平穩。我們並不期望這種情況會從現在開始發生實質改變。

The second one being distribution finance, and that one, we did see a benefit into the first quarter from. It was a typical seasonal pattern. We think the -- that line generally now is in a stable level broadly, and we're just going to see the typical seasonal pattern. It's highest in the first quarter, it's lowest in the third quarter, just based on kind of the cycle of inventory and sales.

第二個是分銷融資，我們確實看到了第一季的收益。這是典型的季節性模式。我們認為，這條線現在總體上處於穩定水平，我們將看到典型的季節性模式。僅從庫存和銷售週期來看，第一季最高，第三季最低。

And then the last one is auto floorplan. You did see that also benefit us somewhat into the first quarter. But again, we think we're now at a point coming out of COVID, particularly in the auto floorplan business where manufacturing has reached a stable level relative to sales, and we are going to see line utilization generally trending in a pretty consistent area from here in the floorplan business. So not counting on it really for the continued growth, although certainly benefited to some degree from seasonality in the first quarter.

最後一項是汽車平面圖。您確實看到這也使我們在第一季受益匪淺。但同樣，我們認為我們現在正處於擺脫新冠疫情的階段，特別是在汽車佈局規劃業務中，製造業相對於銷售已達到穩定水平，我們將看到生產線利用率總體上呈相當一致的趨勢，從這裡是平面圖業務。因此，儘管肯定在一定程度上受益於第一季的季節性因素，但並不真正指望它能實現持續成長。

And each of those businesses that we referenced, we expect net increase in customers. So they'll have a core organic growth. That's a primary driver.

對於我們提到的每一項業務，我們都預期客戶數量將出現淨成長。所以他們將擁有核心的有機成長。這是主要驅動力。

Your next question today is coming from Matt O'Connor from Deutsche Bank.

今天你們的下一個問題來自德意志銀行的馬特‧奧康納。

Most of my questions have been answered. But just from an industry point of view, are there any updates on the debit card interchange reform and remind us how meaningful that could be for you guys? And if that's incorporated in guidance, which I assume it's not, but any updates on that front?

我的大部分問題都得到了解答。但僅從行業角度來看，借記卡互換改革是否有任何最新進展，並提醒我們這對你們來說有多有意義？如果這已納入指南（我認為沒有），那麼這方面有任何更新嗎？

Yes. Good question, Matt. Thanks. So the answer is no, broadly. No substantive update in terms of where that may be going. For us, we've got a really strong debit card franchise. It's one of the best in the country in terms of relative penetration and utilization within our consumer and small business base. And so that's a real benefit to us. The -- if you were to just run the numbers on the proposal as it was proposed, I think it's around $90 million annualized impact for us.

是的。好問題，馬特。謝謝。所以從廣義來說，答案是否定的。沒有關於可能的進展的實質更新。對我們來說，我們擁有非常強大的借記卡特許經營權。就我們的消費者和小型企業基礎的相對滲透率和利用率而言，它是全國最好的之一。這對我們來說是真正的好處。如果你只是按照提案的提議計算數字，我認為這對我們的年影響約為 9000 萬美元。

With that being said, if history is a guide, often, those proposals are changed substantively between the time they're initially put forth and when enacted (inaudible) at all or to be substantively altered. So we'll see.

話雖如此，如果以歷史為鑑，這些提案通常在最初提出和頒布（聽不清楚）之間發生了實質變化，或發生了實質改變。所以我們拭目以待。

For us in our payment strategy, there's so much growth opportunity, and so the opportunities to engage our customers that there will be over time ways to mitigate some of that, certainly offset with other payments related growth. As best we can tell at this point, to the extent there is a proposal, it would be at some point mid to latter part of '25, it will take effect. And so not in the guidance for '24, as you just noted.

對於我們的支付策略來說，有如此多的成長機會，因此有機會吸引我們的客戶，隨著時間的推移，將會有一些方法來緩解其中的一些問題，這肯定會抵消其他與支付相關的增長。就我們目前所知，就提案而言，它將在 25 年中後期的某個時候生效。正如您剛才指出的，所以不在 24 年的指導中。

We reach the end of our question-and-answer session. I'd like to turn the floor back over to Steve for any further closing comments.

我們的問答環節即將結束。我想將發言權交還給史蒂夫，以徵求更多的結論。

So in closing, we're pleased with our first quarter results. We're seeing momentum build across the bank, which will drive improved performance over the course of the year and beyond. We clearly expect our investments in our businesses to deliver growth this year and the future.

最後，我們對第一季的業績感到滿意。我們看到整個銀行的勢頭正在增強，這將推動今年及以後的業績改善。我們明確期望我們對業務的投資能夠在今年和未來實現成長。

The balance sheet is well positioned, ample capital and robust to support our growth initiatives. Our focus remains centered on driving core revenue growth, carefully managing expenses and growing loans consistent with our aggregate moderate- to low-risk appetite.

資產負債表狀況良好，資本充裕，足以支持我們的成長計畫。我們的重點仍然集中在推動核心收入成長、謹慎管理開支和增加符合我們整體中低風險偏好的貸款。

Just as a reminder, the Board executives, our colleagues, our top 10 shareholder collectively, reflecting our strong [alignment] to build shareholder value.

謹此提醒您，董事會高層、我們的同事、我們的十大股東集體反映了我們在建立股東價值方面的強烈[一致]。

Finally, we would not be able to take care of our customers without the efforts of our nearly 20,000 exceptional colleagues engaged every day across the bank. Thank you for your support. Thank you for your questions and your interest in Huntington, and have a great day.

最後，如果沒有全銀行每天近 20,000 名傑出同事的努力，我們就無法照顧好我們的客戶。感謝您的支持。感謝您提出問題以及對亨廷頓的興趣，祝您有個愉快的一天。

That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

今天的電話會議和網路廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。