Horizon Bancorp Inc (HBNC) 2024 Q2 法說會逐字稿

Good morning, everyone, and welcome to the Horizon Bancorp Inc conference call to discuss financial results for the second quarter of 2024. All participants will be in listen only mode. (Operator Instructions)

大家早安，歡迎參加 Horizo​​n Bancorp Inc 電話會議，討論 2024 年第二季的財務表現。所有參與者將處於僅聽模式。（操作員說明）

Please remember that today's call may contain statements that are forward-looking in nature. These statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those discussed, including those factors noted in the slide presentation.

請記住，今天的電話會議可能包含前瞻性陳述。這些陳述受到風險、不確定性和其他因素的影響，可能導致實際結果與討論的結果大不相同，包括幻燈片簡報中指出的那些因素。

Additional information about factors that could cause actual results to differ materially is contained in Horizon's most recent Form 10-K and its later filings with the Securities and Exchange Commission.

有關可能導致實際結果出現重大差異的因素的更多資​​訊包含在 Horizo​​​​n 最新的 10-K 表格及其後來向美國證券交易委員會提交的文件中。

In addition, management may refer to certain non-GAAP financial measures that are intended to help investors understand Horizon's business. Reconciliations for these measures are contained in the presentation, the company assumes no obligation to update any forward-looking statements made during the call.

此外，管理階層可能會參考某些非公認會計準則財務指標，旨在幫助投資者了解 Horizo​​n 的業務。這些措施的調節包含在簡報中，本公司不承擔更新電話會議期間所做的任何前瞻性陳述的義務。

For anyone who does not already have a copy of the press release and supplemental presentation issued by Horizon yesterday. They can be accessed at the company's website horizonbank.com.

對於尚未獲得 Horizo​​​​n 昨天發布的新聞稿和補充簡報副本的任何人。您可以透過該公司的網站 Horizo​​nbank.com 存取它們。

Representing Horizon today are Executive Vice President and Senior Operations Officer, Kathie DeRuiter; Executive Vice President, Corporate Secretary and General Counsel, Todd Etzler; Executive Vice President and Chief Commercial Banking Officer, Lynn Kerber; Executive Vice President and Chief Financial Officer, John Stewart; Executive Vice President and Chief Administration Officer, Mark Secor; and Chief Financial Officer and President, Tom Prame.

今天代表 Horizo​​​​n 的是執行副總裁兼高級營運長 Kathie DeRuiter；執行副總裁、公司秘書兼總法律顧問 Todd Etzler；執行副總裁兼首席商業銀行長 Lynn Kerber；執行副總裁兼財務長約翰·史都華；執行副總裁兼首席行政官 Mark Secor；財務長兼總裁 Tom Prame。

At this time, I would like to turn the call over to Mr. Thomas Prame. Please go ahead, sir.

現在，我想把電話轉給湯瑪斯‧普拉姆先生。請繼續，先生。

Good morning and thank you for participating in today's call. As we begin this morning, I wanted to introduce John Stewart, Horizon's new Chief Financial Officer. John is familiar to many on the call from his various leadership roles in the financial services industry over the last two decades. He's done a tremendous job onboarding during the quarter, and we look forward to the many positive contributions, he brings to our leadership team and organization.

早安，感謝您參加今天的電話會議。今天早上開始時，我想介紹一下 Horizo​​​​n 新任首席財務官約翰·斯圖爾特 (John Stewart)。約翰在過去二十年裡在金融服務業擔任過各種領導職務，因此在電話會議上許多人都很熟悉約翰。他在本季的入職工作做得非常出色，我們期待他為我們的領導團隊和組織帶來許多積極的貢獻。

Thank you, John. And again, welcome to Horizon. Horizon's positive second-quarter results displayed on page 4 reflect the organization's commitment to continually enhance our financial performance for the quarter reflected sequential growth in revenue and pretax, pre-provision income, driven by a third consecutive quarter of expanded net interest income and margin.

謝謝你，約翰。再次歡迎來到地平線。第4 頁顯示的Horizo​​​​n 第二季度積極業績反映了該組織致力於不斷提高本季度財務業績的承諾，這反映了收入和稅前、撥備前收入的環比增長，這是由連續第三個季度擴大的淨利息收入和利潤率推動的。

Fee income growth as well as prudent expense management. Loan growth in the quarter was robust, driven primarily by our relationship-based commercial lending teams. This growth was complemented by consistent positive credit trends in non-performing loans and charge-offs.

費用收入成長以及審慎的費用管理。本季的貸款成長強勁，主要是由我們基於關係的商業貸款團隊推動的。這種增長得到了不良貸款和沖銷方面持續積極的信貸趨勢的補充。

The team continues to find ample opportunities to grow in our local markets while maintaining our positive credit trends through proactive portfolio management and maintaining a diversified lending portfolio.

該團隊繼續在當地市場尋找充足的發展機會，同時透過積極的投資組合管理和維持多元化的貸款組合來維持積極的信貸趨勢。

Horizon's deposit portfolio had a solid quarter with stability in its core consumer and commercial relationships that was balanced with a cost-effective approach to public funds balances. The granular and tender deposit base displayed very strong trends in the quarter with resiliency and core balances and overall deposit costs increasing minimally.

Horizo​​n 的存款組合季度業績穩健，其核心消費者和商業關係穩定，並透過具有成本效益的公共資金餘額方法實現了平衡。本季細粒度和招標的存款基礎顯示出非常強勁的趨勢，彈性和核心餘額以及整體存款成本增幅最小。

As our first quarter results displayed, the company has positive momentum on many fronts through a more profitable balance sheet, realizing investments in our fee income businesses and a well-managed expenses. As highlighted in my opening comments, we were very pleased with success in the quarter. A significant part of the success was loan growth and continued excellent credit quality to provide additional insight into this part of our business model.

正如我們第一季的業績所顯示的，該公司透過更有利可圖的資產負債表、實現對我們的費用收入業務的投資和管理良好的支出，在許多方面都呈現出積極的勢頭。正如我在開場白中所強調的那樣，我們對本季的成功感到非常高興。成功的一個重要部分是貸款成長和持續卓越的信貸質量，為我們這部分業務模式提供了更多的見解。

I'll transition the presentation to our Executive Vice President and Chief Commercial Banking Officer, Lynn Kerber.

我將把演示轉交給我們的執行副總裁兼首席商業銀行官 Lynn Kerber。

Thank you, Thomas. Beginning on slide 5, we have an overview of the loan portfolio as of June 30, with a mix of 16% commercial, 17% residential and 22% consumer, which remains relatively unchanged from our prior quarter. Loan growth was strong in the quarter with an increase in loan balances of $205 million or 17.8% annualized.

謝謝你，托馬斯。從幻燈片5 開始，我們對截至6 月30 日的貸款組合進行了概述，其中包括16% 的商業貸款、17% 的住宅貸款和22% 的消費者貸款，與上一季相比保持相對不變。本季貸款成長強勁，貸款餘額增加 2.05 億美元，年化成長率為 17.8%。

The growth reflected new production predominantly in commercial loans and mortgage loans, while we deemphasize lower yielding consumer originations, consistent with our ongoing balance sheet repositioning, our improving mix resulted in an average new production coupon of 7.93% for the second quarter.

這一增長反映了新生產主要來自商業貸款和抵押貸款，同時我們淡化了低收益消費者來源，與我們正在進行的資產負債表重新定位相一致，我們的組合改善導致第二季度平均新生產息票率為7.93%。

Commercial loans including equipment finance increased $155 million. Residential mortgage loans increased $16 million and consumer loans increased $22 million.

包括設備融資在內的商業貸款增加1.55億美元。住宅抵押貸款增加1600萬美元，消費貸款增加2200萬美元。

Transitioning to some detail on each portfolio, we have commercial loans highlighted on slide 6. Commercial loans increased $154.8 million from the second quarter, representing 22.6% on an annualized basis. Loan fundings were very consistent with prior quarters. However, they were influenced by three larger loans that closed the last week of the quarter.

過渡到每個投資組合的一些細節，我們在幻燈片 6 中突出顯示了商業貸款。商業貸款較第二季增加 1.548 億美元，年化成長率為 22.6%。貸款資金與前幾季非常一致。然而，它們受到本季最後一周結束的三筆較大貸款的影響。

Additionally, we experienced modest increased utilization on lines of credit, combined with a higher volume of previously closed construction loans funding within the quarter. The pace of unscheduled payoffs slowed within the second quarter, which also helped commercial loan balance.

此外，我們的信貸額度利用率略有增加，加上本季先前關閉的建築貸款資金量有所增加。第二季計畫外還款步伐放緩，也有助於商業貸款平衡。

The core commercial pipeline continues to be strong, with opportunities for continued growth with the team remaining diligent and sound credit underwriting and pricing discipline. Activity continues to be well diversified by industry and geography and our portfolio mix continues to be roughly of this 3% CRE at 27% C&I you will note that our CRE nonowner-occupied ratio at 180% and our CRE three year growth rate at 20% are conservative and compared favorably to the UBPR peer group ratio of 240% and growth of 55%.

核心商業管道持續強勁，隨著團隊保持勤奮和健全的信貸承銷和定價紀律，有持續成長的機會。活動繼續按行業和地理多元化，我們的投資組合繼續大致為 3% CRE 和 27% C&I 您會注意到，我們的 CRE 非自住比例為 180%，我們的 CRE 三年增長率為 20%較為保守，與UBPR 同行群體240% 的比例和55% 的增長相比，毫不遜色。

Commercial credit quality remains strong, but low past-dues, low non-performing loan level and net recoveries of $3,000 year to date 2024. With a heightened focus on the elevated interest rate environment, we've included a summary of maturing CRE loans for '24 and '25 on slide 7.

商業信貸品質依然強勁，但逾期未付款、不良貸款水準較低，2024 年迄今淨回收額為 3,000 美元。由於高度關注利率上升的環境，我們在投影片 7 上總結了 24 年和 25 年到期的 CRE 貸款。

The churn CRE loans with interest rates below 7% represent 4% of the portfolio for the remainder of this year and 6% for 2025. We believe rates and maturities are well managed in our CRE portfolio to limit exposure to rate related credit risk at this time.

利率低於 7% 的流失 CRE 貸款佔今年剩餘時間投資組合的 4%，到 2025 年佔 6%。我們相信，我們的商業房地產投資組合中的利率和期限管理得當，可以限制目前與利率相關的信用風險。

Turning to slide 8. Consumer loan balances increased $22 million during the quarter, reflecting a little of an 8.4% annualized growth. The mortgage portfolio grew $16 million, representing 8.1% annualized growth. The focus remains on high credit quality borrowers with an ability to pay significant equity in their homes.

轉到投影片 8。本季消費者貸款餘額增加了 2,200 萬美元，年化成長率為 8.4%。抵押貸款組合成長了 1,600 萬美元，年增長率為 8.1%。重點仍然是有能力支付大量房屋淨值的高信用品質借款人。

Overall, credit quality remains satisfactory in the consumer and mortgage portfolios with delinquencies and charge-offs within targeted range. Transitioning to credit quality, our asset quality metrics continue to be strong as outlined on slide 9, substandard loans of $51.2 million represented 1.06% of loans, which is well within the range of recent period end levels.

總體而言，消費者和抵押貸款組合的信貸品質仍然令人滿意，拖欠和沖銷均在目標範圍內。轉向信貸質量，我們的資產品質指標繼續強勁，如幻燈片 9 所示，次級貸款 5,120 萬美元，佔貸款的 1.06%，完全在近期期末水準的範圍內。

Non-performing loans remained low and were relatively unchanged for the quarter at $19.3 million, representing 0.4% of total loans. Net charge-offs for the second quarter were $584,000, representing an annualized charge-off rate of 5 basis points with charge-offs predominantly in indirect consumer loans.

本季不良貸款維持在較低水平，相對穩定，為 1,930 萬美元，佔貸款總額的 0.4%。第二季的淨沖銷額為 584,000 美元，年化沖銷率為 5 個基點，沖銷主要用於間接消費貸款。

Finally, our allowance for credit losses increased in the quarter to $52.2 million, primarily attributed to growth in the quarter and was offset by small reductions of dedicated specific reserves and economic forecast. Provision expense of $2.37 million was a combination of the ACL increase of $1.8 million represented by loan growth and recognition of the modest quarterly change charge-off of $584,000.

最後，我們的信貸損失準備金在本季度增加至 5,220 萬美元，主要歸因於本季度的成長，並被專用特定準備金和經濟預測的小幅減少所抵消。撥備費用 237 萬美元是 ACL 增加 180 萬美元（貸款成長）和小幅季度沖銷 584,000 美元的認可的綜合結果。

The allowance represents 1.08% of total gross loans, which we believe is appropriate given credit performance and current economic forecast, future reserve amounts and related provision will be driven by loan growth and mix, economic forecasts and credit trend.

準備金佔貸款總額的1.08%，考慮到信貸表現和當前經濟預測，我們認為這一比例是適當的，未來準備金金額和相關撥備將由貸款成長和組合、經濟預測和信貸趨勢驅動。

Now I'd like to turn things back to Thomas, who will provide an overview of our deposit portfolio.

現在我想把事情轉回給湯瑪斯，他將概述我們的存款投資組合。

Thank you, Lynn. And as always, great insight information. As we mentioned earlier, we're pleased to see the positive momentum in our net interest margin. This momentum is partially a result of the strength and resiliency of our tenured and granular deposit base that's displayed on slides 10 and 11.

謝謝你，林恩。一如既往，精彩的洞察資訊。正如我們之前提到的，我們很高興看到淨利差的正面動能。這種勢頭部分歸功於幻燈片 10 和 11 中顯示的長期和細粒度存款基礎的強度和彈性。

Horizon's core consumer and commercial balances were consistent from the first quarter, highlighted by stable non-interest bearing deposit balances. Additionally, the company continues to take a practical approach to public funds, focusing on operating relationships while balancing pricing and duration in the portfolio.

Horizo​​n 的核心消費者和商業餘額與第一季持平，穩定的無利息存款餘額凸顯了這一點。此外，該公司繼續對公共基金採取務實的態度，重點關注營運關係，同時平衡投資組合的定價和期限。

Our newly added resources to our treasury management team are making an impact gathering new relationships and expanding wallet share with our core commercial lending clients, as currently positioned we believe the deposit portfolio will benefit the organization in a down rate environment with its granular composition and long-standing relationships in our local markets.

我們為財務管理團隊新增的資源正在產生影響，與我們的核心商業貸款客戶建立新的關係並擴大錢包份額，就目前的定位而言，我們相信存款組合以其精細的構成和長期的優勢，將在利率下降的環境中使該組織受益。

The portfolio is very stable with approximately 50% of the balances in relationship-based checking accounts with clients that know and trust Horizon well.

該投資組合非常穩定，大約 50% 的餘額位於基於關係的支票帳戶中，客戶非常了解並信任 Horizo​​n。

Let me hand the presentation over to our Executive Vice President and Chief Financial Officer, John Stewart, who will walk through some additional balance sheet highlights and other key financial metrics.

讓我將簡報交給我們的執行副總裁兼財務長約翰·史都華 (John Stewart)，他將介紹一些額外的資產負債表亮點和其他關鍵財務指標。

Great. Thank you, Thomas. As noted on slide 12, there were no purchases of investment securities during the quarter, which was the primary driver of period-end balances declining by about $30 million, while the fully tax equivalent portfolio yield was unchanged when compared to last quarter at 2.39%.

偉大的。謝謝你，托馬斯。如投影片 12 所示，本季沒有購買投資證券，這是期末餘額下降約 3,000 萬美元的主要驅動力，而完全稅後的投資組合收益率與上季相比保持不變，為 2.39% 。

Going forward, you can expect similar trends to continue for the foreseeable future, as cash flows from the portfolio are profitably redeployed elsewhere on the balance sheet. At the bottom of the slide, you can see the anticipated cash flows for the next four quarters as well as the expected FTE roll-off yield, which is a new disclosure, we hope you will find helpful.

展望未來，您可以預期在可預見的未來，類似的趨勢將持續下去，因為來自投資組合的現金流將有利地重新部署到資產負債表上的其他地方。在投影片的底部，您可以看到未來四個季度的預期現金流以及預期的 FTE 滾存收益率，這是一項新的披露，希望對您有所幫助。

Turning to slide 13, the benefits of the asset repositioning strategy were again evident this quarter, driving a favorable shift in the mix of earning assets, which coupled with disciplined loan pricing and well-controlled interest-bearing funding costs, drove a 14 basis point increase in the FTE net interest margin during the quarter to 2.64%.

轉向投影片 13，資產重新定位策略的好處在本季再次顯現，推動了獲利資產組合的有利轉變，再加上嚴格的貸款定價和良好控制的計息融資成本，推動了 14 個基點本季FTE淨利差增加至2.64%。

This result was better than anticipated, which drove net interest income to the higher end of the guidance range for the quarter.

這一結果好於預期，推動淨利息收入達到本季指導範圍的高端。

Looking ahead, you'll note that end-of-period loans are well above the average, which bodes well for both net interest income growth and modest further expansion in Q3, even as funding costs will see a bit more lift relative to Q2 to fund that growth.

展望未來，您會注意到期末貸款遠高於平均水平，這對淨利息收入增長和第三季度的進一步溫和擴張來說是個好兆頭，儘管融資成本相對於第二季度將有所上升為這種成長提供資金。

Beyond Q3 into Q4, the net expansion likely moderate some absent any rate cuts or meaningful changes further out on the curve. As you can see on slide 14, it was a relatively good quarter for the company on the fee income front, delivering $10.5 million in revenue, near the upper end of the guidance range for the quarter.

從第三季度到第四季度，如果沒有任何降息或曲線進一步發生有意義的變化，淨擴張可能會放緩。正如您在幻燈片 14 中看到的那樣，該公司在費用收入方面表現相對較好的季度，實現了 1,050 萬美元的收入，接近該季度指導範圍的上限。

Seasonal increases in both interchange fees and mortgage gain on sale drove the linked quarter increase. Looking ahead to the remainder of the year, targeted hiring and treasury management mortgage and private wealth should continue to deliver positive momentum. We would expect fee income to run rate in the $10.5 million to $11 million range per quarter for the remainder of the year.

交換費和銷售抵押貸款收益的季節性成長推動了相關季度的成長。展望今年剩餘時間，有針對性的招聘和財務管理抵押貸款和私人財富應繼續帶來積極勢頭。我們預計今年剩餘時間內每季的費用收入將在 1,050 萬美元至 1,100 萬美元之間。

As evident on slide 15, it was a good expense quarter for the company coming in at the low end of the prior guidance. Seasonal declines in occupancy expense and well controlled outside services expense were generally offset by additional hiring and related expense in the quarter, volume-driven loan fees and elevated levels of operational loss.

正如幻燈片 15 所示，對於該公司來說，這是一個良好的支出季度，處於先前指導的低端。入住費用和控制良好的外部服務費用的季節性下降通常被本季度額外招聘和相關費用、數量驅動的貸款費用和營運虧損水平上升所抵消。

Looking ahead, while investments in the business will drive the quarterly expense run rate modestly higher in the second half of the year. We would remain disciplined in our approach and therefore continue to expect annualized expenses to remain less than 2% of average total assets, even with the slowing asset growth we noted earlier.

展望未來，該業務的投資將推動下半年季度費用運行率小幅上升。我們將繼續嚴格執行我們的方法，因此，即使我們先前指出的資產成長放緩，我們仍然預計年化費用仍將低於平均總資產的 2%。

Turning to capital on slide 16, we saw some modest compression in risk base ratios as strong loan growth late in the quarter helped drive risk-weighted asset growth from Q1. That said, we continue to feel good about the company's capital position with slower growth anticipated for the back half of the year relative to the first and continued runoff in investment securities as previously noted, we'd expect all regulatory capital ratios to increase from here over the second half of the year.

轉向幻燈片 16 上的資本，我們看到風險基礎比率略有壓縮，因為本季末強勁的貸款成長幫助推動了第一季風險加權資產的成長。儘管如此，我們仍然對該公司的資本狀況感到良好，預計今年下半年的成長將較上半年放緩，並且如前所述，投資證券持續減少，我們預計所有監管資本比率將從現在開始增加下半年。

Finally, turning to the outlook on slide 17. Now that the reinvestment activities from the security sale in Q4 of 2023 have been completed we are moving towards a higher level outlook methodology, which provides you with our current view for the remainder of the year. You can see the key balance sheet assumptions articulated in the first two sections on the slide.

最後，轉向幻燈片 17 上的展望。現在，2023 年第四季證券銷售的再投資活動已經完成，我們正在轉向更高層次的展望方法，該方法為您提供我們對今年剩餘時間的當前看法。您可以看到投影片前兩部分闡述的關鍵資產負債表假設。

Ensured loan and asset growth is expected to moderate from the recent pace, and deposits should remain relatively stable, excluding any impact from rate cuts we would expect modest further expansion in Q3 as the average earning asset mix will benefit from loan growth late in the second quarter.

Ensured loan and asset growth is expected to moderate from the recent pace, and deposits should remain relatively stable, excluding any impact from rate cuts we would expect modest further expansion in Q3 as the average earning asset mix will benefit from loan growth late in the second四分之一.

As mentioned previously, the pace of Q4 NIM expansion will likely moderate, again excluding any impact from rate cuts. Combined, we would anticipate net interest income to grow in the upper single digit range for the second half of 2024 when compared with the first. Fee income should continue with some positive momentum through the second half of the year with the quarterly run rate in the $10.5 million to $11 million range.

如前所述，第四季淨利差擴張的步伐可能會放緩，再次排除降息的影響。綜合而言，我們預計 2024 年下半年的淨利息收入將較上半年成長至個位數上限。下半年費用收入應會持續保持正面勢頭，季度運行率在 1,050 萬美元至 1,100 萬美元之間。

While quarterly expenses in the second half of the year will increase modestly from $37.5 million reported in Q2. They are expected to remain less than 2% annualized of average assets. Finally, the effective tax rate for the full year should be in the 9.5% to 10% range. With that, I'll turn the call back over to Thomas.

而下半年的季度支出將比第二季報告的 3,750 萬美元小幅增加。預計它們的平均資產年化率仍將低於 2%。最後，全年有效稅率應在9.5%至10%範圍內。這樣，我會將電話轉回湯瑪斯。

Thank you, John. As outlined in our presentation, we see continued positive momentum for the Horizon for the second half of 2024. We are in excellent growth markets in the Midwest that are economically attractive for businesses and individuals. Our loan growth is strong and aligned with our historical low credit risk profile.

謝謝你，約翰。正如我們在演示中所述，我們認為 2024 年下半年 Horizo​​n 仍將保持積極勢頭。我們位於中西部的良好成長市場，對企業和個人具有經濟吸引力。我們的貸款成長強勁，符合我們歷史上較低的信用風險狀況。

The commercial pipeline continues to be positive and the benefit of the cash flows from our securities portfolio will allow for positive reinvestment across the balance sheet. The resiliency of our core deposit base maintains its great value with additional opportunity to help improve our financial performance as rates decline.

商業管道繼續保持積極勢頭，我們的證券投資組合現金流的好處將允許在整個資產負債表上進行積極的再投資。我們核心存款基礎的彈性保持了其巨大的價值，並有額外的機會在利率下降時幫助改善我們的財務表現。

The company also continued to have significant funding capacity if needed, Horizon has a lean and operating culture, that consistently adapts to its markets and its environment to deliver long-term shareholder value. We are strategically investing in improving our revenue models, maintaining our excellent credit profile, and capturing efficiencies in how we deliver our products and our services.

如果需要，該公司也繼續擁有強大的融資能力，Horizo​​n 擁有精益的營運文化，能夠不斷適應其市場和環境，以實現長期股東價值。我們正在策略性地投資於改善我們的收入模式，保持我們良好的信用狀況，並提高我們提供產品和服務的效率。

And lastly, we believe Horizon is still a very compelling value, supported by our 30 plus years of commitment to our dividend and recently offering a 4.2% dividend yield. As always, we thank you in advance for joining our presentation this morning. This concludes our prepared remarks, and I'll ask our operator, please open the lines for questions.

最後，我們相信 Horizo​​n 仍然具有非常引人注目的價值，這得益於我們 30 多年來對股息的承諾以及最近提供的 4.2% 的股息收益率。像往常一樣，我們提前感謝您參加我們今天早上的演講。我們準備好的演講到此結束，我將詢問我們的接線員，請打開提問線路。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Terry McEvoy, Stephens.

崔麥克沃伊、史蒂芬斯。

Thanks. Good morning, everyone.

謝謝。大家早安。

Good morning, Terry.

早上好，特里。

And maybe just start with the margin outlook. Could you talk about the assumption for interest bearing deposit costs. Looks like last quarter you had a nice benefit from lower time deposits now averaging below 4%, though it looks like kind of your promo rates are 4% to 5% when I just look at your website. So I'd be helpful if you could kind of run through the underlying assumptions there.

也許只是從利潤前景開始。能談談生息存款成本的假設嗎？看起來上個季度你們從較低的定期存款中受益匪淺，現在平均利率低於 4%，儘管當我查看你們的網站時，你們的促銷利率似乎是 4% 到 5%。因此，如果您能大致了解那裡的基本假設，我會很有幫助。

Yeah, Terry, thanks for the question, it's John. So we exited the quarter. As I noted in the prepared remarks, we had some pretty strong loan growth into the end of the quarter, that was correspondent with some pretty strong funding growth on the other side of the balance sheet. So as we think about the starting point for interest bearing deposit costs, if you will into the beginning of this quarter, they're in -- they were 256 if you kind of run through the second quarter, they're in the low 260s as a starting point for this quarter.

是的，特里，謝謝你的提問，我是約翰。所以我們退出了這個季度。正如我在準備好的發言中指出的那樣，到本季末我們的貸款成長相當強勁，這與資產負債表另一端的融資成長相當強勁相對應。因此，當我們考慮計息存款成本的起點時，如果你願意進入本季度初，它們是 256，如果你回顧第二季度，它們處於 260 左右作為本季度的起點。

Thank you for that. And then I apologize if this is the presentation, but could you talk about any purchases of the jumbo mortgages? Did that occur in the second quarter and then it looks like there was C&I growth. How did leasing come into play in Q2 as well?

謝謝你。如果這是演示，我很抱歉，但是您能談談巨額抵押貸款的購買情況嗎？這是否發生在第二季度，然後看起來工商業成長了。租賃在第二季又是如何發揮作用的？

I can tell you is as you look at our second quarter, John's comments earlier had mentioned the fact that we're done with the redeployment strategy around the security sales from the fourth quarter. And the second quarter, if you looked at our transactional portfolios, including our indirect auto. That portfolio was up about $20 million. So the aggregate growth of $200 million, about 90% of it was through our organic franchise.

我可以告訴你的是，當你看到我們的第二季度時，約翰早些時候的評論提到了這樣一個事實，即我們已經完成了第四季度圍繞安全銷售的重新部署策略。第二季度，如果你看看我們的交易投資組合，包括我們的間接汽車。該投資組合增加了約 2000 萬美元。因此，總成長 2 億美元，其中約 90% 是透過我們的有機特許經營實現的。

I'll pass over to Lynn, talked a little bit about leasing specifically.

我將轉給 Lynn，專門討論租賃問題。

Good morning, Terry, how are you?

早安，特里，你好嗎？

Great. Thanks, Lynn.

偉大的。謝謝，林恩。

And regarding leasing, our team is really ramping up very nicely. As you know, we had most of our funding in the first quarter kind of late in the quarter. Second quarter was really spread more throughout the quarter and really ramping up and shaping up nicely for Q3. I think I had shared previously we were targeting $110 million, $120 million for the year. And I would say at this time, we're on pace to achieve that.

在租賃方面，我們的團隊確實正在快速成長。如您所知，我們的大部分資金是在第一季末獲得的。第二季度確實在整個季度中傳播得更多，並且確實為第三季度做好了準備。我想我之前已經說過，我們今年的目標是 1.1 億美元、1.2 億美元。我現在想說的是，我們正在努力實現這一目標。

Thanks for that. And I'd just note your positive credit trends stand out this morning based on a few other things I've evaluated, we've just taken up my time. Thank you for taking my questions.

謝謝你。我只是想指出，根據我評估的其他一些事情，今天早上你們的正向信用趨勢很突出，我們剛剛佔用了我的時間。感謝您回答我的問題。

Nathan Race, Piper Sandler.

內森·雷斯，派珀·桑德勒。

Yeah, hi, everyone. Good morning (multiple speakers) questions. I'm just curious as you think about kind of the loan growth drivers for the back half of the year, I think the guidance is kind of a low to mid-single digits. Just curious in terms of how you guys expect to take that as a continued C&I and leasing growth or any other factors that go into play there?

是的，大家好。早安（多位發言者）問題。我只是很好奇，當你考慮今年下半年的貸款成長驅動因素時，我認為指導是低到中個位數。只是好奇你們希望如何將其視為持續的工商業和租賃增長或任何其他在那裡發揮作用的因素？

Yeah. Thanks for the question. We are our fundings have been -- new loan fundings have been very consistent year over year. And when I reviewed first and second quarter this year compared to last year and the new funding or initial funding model is very consistent. But we did see a little bit of timing difference between Q1 and Q2.

是的。謝謝你的提問。我們的資金一直是－新的貸款資金逐年非常穩定。當我回顧今年第一季和第二季與去年相比時，新的融資或初始融資模式非常一致。但我們確實看到第一季和第二季之間存在一些時間差異。

And I don't know that's going to always be the same rate as Q2, right. There are some changes from quarter to quarter. But as we look towards the end of the year, there are some things that we're looking at initial fundings, I think will be pretty consistent.

我不知道這是否會始終與第二季度相同，對吧。每個季度都有一些變化。但當我們展望今年年底時，我們正在考慮一些初始資金，我認為這將非常一致。

And as noted in my prepared remarks, we are having some construction funding right now on previously approved loans. So I expect that's going to continue during the building season in Michigan and Indiana. We've also had some slowdown and unscheduled payoffs, I think, primarily with the rate environment.

正如我在準備好的演講中指出的那樣，我們現在正在利用先前批准的貸款來獲得一些建設資金。因此，我預計這種情況將在密西根州和印第安納州的建築季節繼續下去。我認為，我們也遇到了一些放緩和計劃外的回報，主要是由於利率環境。

So I would say generally, our outlook is good. If rates start to be reduced towards the end of the year, that could spark some additional today.

所以我想說，總的來說，我們的前景是好的。如果利率在年底前開始降低，今天可能會引發一些額外的降息。

Okay, great. And then just in terms of funding that loan growth in the back half of the year. I appreciate the added disclosures on slide 12 in terms of the quarterly cash flows coming off the securities portfolio, should that support the large amount of loan growth in the back half of the year? Or do you guys see a need to maybe test some wholesale sources just given kind of the stable deposit outlook over the next couple of quarters?

好的，太好了。然後就為下半年的貸款成長提供資金而言。我很欣賞幻燈片 12 中關於證券投資組合季度現金流量的額外揭露，這是否會支持下半年的大量貸款成長？或者，鑑於未來幾季存款前景穩定，你們是否認為有必要測試一些批發來源？

I think safe and again, for the question, as you look at our loan growth in the mid-single digits overall in the portfolio. As we mentioned earlier, it's primarily going to be driven on the commercial side with the mix within that commercial growth representing what the portfolio looks like.

對於這個問題，我認為是安全的，因為你看到我們的貸款成長在投資組合中總體處於中個位數。正如我們之前提到的，它主要是在商業方面驅動的，商業成長中的混合代表了投資組合的樣子。

That's going to be complemented by our continuing mix change we've talked about the top of the house, taking lower yielding consumer assets, letting those go to cash and then being able to fund a lot of the growth in commercial that combined with the securities run out there, John outlined upfront that's going to give us more than enough liquidity to fund any type of loan growth without really having to have significant deposit growth in the quarter and for the remainder of the year.

這將透過我們持續的組合變化來補充，我們已經談到了房子的頂部，採取較低收益的消費資產，讓這些資產變成現金，然後能夠為與證券相結合的商業增長提供資金約翰預先概述了這一點，這將為我們提供足夠的流動性來為任何類型的貸款成長提供資金，而無需在本季度和今年剩餘時間內真正實現存款大幅增長。

Okay, great. Very helpful. And if I could just ask one more on the appetite for repurchases going forward. You've had some growth in TCE, but it seems like you guys are still seeing good organic growth opportunities as well. I know the stocks went up over the last several weeks, similar to the group, but just any updated thoughts, Thomson, perhaps reengage on up repurchases going forward?

好的，太好了。非常有幫助。我是否可以再問一個關於未來回購意願的問題。你們在 TCE 方面取得了一些成長，但似乎你們仍然看到了良好的有機成長機會。我知道股票在過去幾週上漲，與該集團類似，但湯姆森，有任何更新的想法嗎？

I think you had and we also recognize that the math could be really appealing right now for potential stock buyback and/or securities repositioning. And again, we're going to continue to evaluate the capital allocation options throughout the remainder of the year as our earnings momentum continues and we continue to grow capital levels and we're going to remain diligent, examine all potential options with our primary focus is going to be on making sure we deliver shareholder value.

我想你已經知道了，我們也認識到，對於潛在的股票回購和/或證券重新定位來說，數學現在可能非常有吸引力。再說一次，隨著我們的盈利勢頭持續，我們將繼續提高資本水平，我們將在今年剩餘時間內繼續評估資本配置選項，我們將繼續勤奮，以我們的主要重點審查所有潛在的選擇我們將致力於確保我們為股東創造價值。

Okay, great. I appreciate all the color. Thank you.

好的，太好了。我欣賞所有的顏色。謝謝。

Thank you.

謝謝。

Damon DelMonte, KBW.

達蒙·德爾蒙特，KBW。

Hey, good morning, everyone. Thanks for taking my questions. Everybody is doing well and welcome aboard, John.

嘿，大家早安。感謝您回答我的問題。每個人都做得很好，歡迎加入，約翰。

So first question, just kind of regarding the margin outlook. Kind of took from the commentary that you're caveating it with no changes to rates. But what happens if the Fed does cut rates here in the back half of this year and then, a few times as we go through '25, how would you expect the margin to respond to that?

第一個問題是關於利潤前景的。有點取自評論，您正在警告它，但價格沒有變化。但是，如果聯準會在今年下半年確實降息，然後在我們進入 25 年期間降息幾次，您預計利潤率會對此做出怎樣的反應？

Yeah, David, thanks for the question. So the outlook I articulated there's 125 basis point cut in the middle of the year. So that doesn't have much of a middle of the fourth quarter. So that doesn't have much of an impact on the outlook for this year.

是的，大衛，謝謝你的提問。因此，我闡述的前景是年中降息 125 個基點。所以第四節中間沒有太多時間。因此，這對今年的前景沒有太大影響。

As we look at the balance sheet today, on a static balance sheet, a 25 basis point rate cut is marginally accretive to the NIM. That would be our expectation in the preceding 30 days. So if you just kind of work through the balance sheet. We've got about 25% of our loans that will reprice inside 30 days on the very front end of the curve, not much in securities and the cash position, you can see it. There is not a meaningful contributor.

當我們今天查看資產負債表時，在靜態資產負債表上，降息 25 個基點對淨利差略有增加。這是我們對未來 30 天的預期。所以如果你只是簡單地了解一下資產負債表。我們大約 25% 的貸款將在曲線最前端的 30 天內重新定價，證券和現金頭寸不多，你可以看到。沒有有意義的貢獻者。

On the other side of the balance sheet, there's not a lot of contractual repricing on the liability base outside of the trust preferred. So how much margin lift we get from 25 basis points really comes from our ability to manage down non-maturity interest-bearing deposit costs. The team around here has got a lot of experience doing that our expectation would be that we could do so such that the rate cuts are accretive to the margin and immediate term.

在資產負債表的另一邊，除了首選信託之外，並沒有太多關於負債基礎的合約重新定價。因此，我們從 25 個基點獲得的保證金提升幅度實際上取決於我們降低無到期息存款成本的能力。這裡的團隊在這方面擁有豐富的經驗，我們的期望是，我們可以這樣做，使降息能夠增加利潤和短期效益。

Absent rate as you look over the course of the year or the next four to six quarters, I should say. And a lot of the dynamics that you saw in place this quarter will remain in place, as Thomas just mentioned, there's a positive earning asset mix shift that will take place through no plan to reinvest securities cash flows to those lever all the cash refund loans that's accretive on the earning asset side by absent any rate cuts.

我應該說，從全年或未來四到六個季度的情況來看，缺勤率是這樣的。正如托馬斯剛才提到的，本季度你看到的許多動態將繼續存在，通過沒有計劃將證券現金流再投資到那些槓桿所有現金退款貸款，將會發生積極的盈利資產組合轉變。在降息的情況下，這會增加獲利資產。

And then while the deposit base or the funding side becomes a little harder to predict. Now looking out that far, again, I think all things being considered with the growth dynamics that we see in the balance sheet today, no rate cuts are probably marginally accretive to the new outlook over the foreseeable future. Might not necessarily be in a straight line as there are some timing differences between cash flows and maturities, but that generally over that timeframe, I think that's a reasonable expectation.

然後，存款基礎或融資方面變得有點難以預測。現在，再次展望未來，我認為，考慮到我們今天在資產負債表中看到的成長動態，在可預見的未來，任何降息都可能不會對新前景產生輕微的促進作用。可能不一定是一條直線，因為現金流量和到期日之間存在一些時間差異，但一般來說在該時間範圍內，我認為這是一個合理的預期。

Got it. That's great color. Thank you.

知道了。那顏色真棒。謝謝。

And then that's my second question credit trends have obviously remained very strong. As you kind of think about the provisioning here in the back half of the year. Do you feel like kind of the average of the first two quarters is a reasonable quarterly run rate? Or do you think maybe there's some underlying trends that are starting to percolate a little bit and you think you need to kind of and keep a little bit higher level.

這是我的第二個問題，信貸趨勢顯然仍然非常強勁。當你想到今年下半年的供應情況。您認為前兩個季度的平均季度運行率是否合理？或者你認為也許有一些潛在的趨勢開始滲透一點，你認為你需要有點並保持更高的水平。

And in regards to the ACL on spot, if you participated in the Q1 call that we had some rebalancing of our balance sheet and change in mix that affected the first quarter.

關於現場 ACL，如果您參加了第一季的電話會議，我們對資產負債表進行了一些重新平衡，並進行了影響第一季的組合變化。

I would say generally speaking, both Q1 and Q2, we had the release of some dedicated specific reserves. So I don't know that I would do an average of those on necessarily. But as far as factors driving it going forward, I think principally this point is going to be driven by loan growth. As you can see for this quarter and our credit metrics has been really solid.

我想說，一般來說，無論是第一季還是第二季度，我們都釋放了一些專用的特定儲備。所以我不知道我是否一定會做這些的平均值。但就推動其前進的因素而言，我認為這主要是由貸款成長推動的。正如您所看到的，本季我們的信用指標非常穩定。

And so we're just going to continue to monitor it. It's I think it's going to be primarily driven by growth and economic forecast.

所以我們將繼續監控它。我認為這將主要受到成長和經濟預測的推動。

Got it. Okay, great. That's all that I had, everything else was asked and answered. Thank you.

知道了。好的，太好了。這就是我所擁有的一切，其他一切都被詢問和回答。謝謝。

Thank you.

謝謝。

Brian Martin, Janney Montgomery.

布萊恩馬丁，珍妮蒙哥馬利。

Pretty good morning, everyone. Just one question on the margin. I think Damon just asked my question, but the in terms of where the margin ended the month of the quarter. Can you please tell us where you exited the quarter in the month of June on the margin?

大家早安。只是一個邊緣問題。我認為達蒙剛剛問了我的問題，但問題是本季結束時的利潤率。您能否告訴我們您在 6 月退出該季度的利潤率是多少？

Hey, Brian. So the margin in the month of June was pretty consistent with the quarter overall. But As Lynn noted in her prepared remarks and you can see in the end-of-period balance sheet versus the average, most of the growth came right at the end of the quarter. So but for the month of June, the margin was pretty consistent with the full quarter of 2.64%.

嘿，布萊恩。因此，六月的利潤率與整個季度相當一致。但正如林恩在她準備好的演講中指出的那樣，您可以從期末資產負債表與平均水平的比較中看到，大部分增長出現在季度末。因此，6 月的利潤率與整個季度的 2.64% 相當一致。

Got you. And just in terms of credit, I guess like if everything looks really nice in terms of anything on the horizon in terms of looking at the C&I portfolio, is there -- can you talk about just kind of any trends you're seeing within that C&I portfolio still very healthy? Or is there anything to be mindful of that kind of trend board here?

明白你了。就信貸而言，我想如果就 C&I 投資組合而言，一切看起來都非常好，那麼您能談談您在其中看到的任何趨勢嗎？或者說這種趨勢板有什麼要注意的嗎？

Yeah, well, so as you can see, our overall metrics on our solid our commercial past-dues have been extremely low. We're in a net recovery position this year, and I will tell you that third and fourth quarter of last year, we saw some impact on some of our C&I customers with their revenue run rate.

是的，正如您所看到的，我們的商業逾期未付款項的整體指標非常低。今年我們處於淨復甦狀態，我會告訴你，去年第三和第四季度，我們看到一些工商業客戶的收入運作率受到了一些影響。

Unfortunately, we've got some very well-seasoned customers and they've made some changes to their business models. So at this point, we're seeing some of them start to actually improve from what we saw in the third quarter, fourth quarter was the better the revenue rate. So I'm not seeing anything overly concerning at this point.

不幸的是，我們有一些經驗豐富的客戶，他們對自己的商業模式做了一些改變。因此，在這一點上，我們看到其中一些公司開始實際比我們在第三季度看到的情況有所改善，第四季度的收入率更好。所以目前我沒有看到任何過於令人擔憂的事情。

Okay. Thank you for that. And then just I guess one of the thing was no actually, it was already asked and answered. So I'm all good. Thank you, guys.

好的。謝謝你。然後我想其中一件事實際上不是，它已經被問過並回答了。所以我一切都好。謝謝你們，夥計們。

Thank you.

謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議轉交管理層發表閉幕詞。

Thank you, Meghan. Again, thank you for participating in today's earnings call. The team had a very productive second quarter with positive momentum in our key earning metrics heading into the second half of 2024. We appreciate your attendance today, and we look forward to our next quarterly update.

謝謝你，梅根。再次感謝您參加今天的財報電話會議。該團隊的第二季度非常富有成效，我們的關鍵獲利指標在進入 2024 年下半年時呈現出積極的勢頭。感謝您今天的出席，我們期待下一個季度的更新。

The conference has now concluded Thank you for attending today's presentation. You may now disconnect.

會議現已結束，感謝您參加今天的演講。您現在可以斷開連線。