Horizon Bancorp Inc (HBNC) 2025 Q3 法說會逐字稿

Good morning, everyone, and welcome to the Horizon Bancorp, Inc. conference call to discuss financial results for the third quarter of 2025. (Operator Instructions)

各位早安，歡迎參加 Horizo​​​​n Bancorp, Inc. 2025 年第三季財務業績電話會議。（操作說明）

At this time, I'd like to turn the floor over to Todd Etzler, Executive Vice President, Corporate Secretary and General Counsel, for the opening introduction.

此時，我謹將發言權交給執行副總裁、公司秘書兼總法律顧問托德·埃茨勒，請他作開場介紹。

Good morning, and welcome to our third quarter conference call. 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. 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. In addition, management may refer to certain non-GAAP financial measures that are intended to help investors understand Horizon's business.

早上好，歡迎參加我們第三季電話會議。請注意，今天的電話會議可能包含一些前瞻性陳述。這些聲明存在風險、不確定性和其他因素，可能導致實際結果與討論的結果有重大差異，包括幻燈片簡報中提到的那些因素。有關可能導致實際結果與預期結果存在重大差異的因素的更多信息，請參閱 Horizo​​​​n 最新的 10-K 表格及其之後向美國證券交易委員會提交的文件。此外，管理階層可能會參考某些非GAAP財務指標，以幫助投資者了解Horizo​​n的業務。

Reconciliations for these measures are contained in the presentation. The company assumes no obligation to update any forward-looking statements made during the call.

這些措施的核對情況已在簡報中列出。本公司不承擔更新電話會議期間所作任何前瞻性陳述的義務。

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

對於尚未收到 Horizo​​​​n 昨天發布的新聞稿和補充演示文稿的任何人，均可訪問該公司網站 horizo​​​​nbank.com 獲取。

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; and Chief Executive Officer and President, Thomas Prame.

今天代表 Horizo​​​​n 出席的有：執行副總裁兼高級營運官 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官 Lynn Kerber；執行副總裁兼首席財務官 John Stewart；以及首席執行官兼總裁 Thomas Prame。

At this time, I will turn the call over to Thomas Prame. Thomas?

此時，我將把通話轉交給湯瑪斯‧普拉姆。托馬斯？

Thank you, Todd. Good morning, and we appreciate you joining us. Horizon's third quarter results, highlighted on slide 3, display the successful execution of our previously announced strategic balance sheet repositioning and the continued excellent performance of our community banking franchise. The balance sheet restructuring effort has exceeded our initial expectations, and it is on pace to achieve the top-tier financial outcomes outlined in our plan. The team did an outstanding job on the equity and debt raises as well as the subsequent execution optimizing the securities and loan portfolios as well as the funding sources of our balance sheet.

謝謝你，托德。早上好，感謝您的參與。Horizo​​n 第三季業績（投影片 3 重點介紹）顯示，我們先前宣布的策略資產負債表重組計畫已成功執行，並且我們的社區銀行特許經營業務持續表現出色。資產負債表重組工作已超出我們最初的預期，並有望實現我們計劃中概述的最高財務目標。該團隊在股權和債務融資以及後續執行方面表現出色，優化了證券和貸款組合以及資產負債表的資金來源。

Additionally, our third quarter results further evidence the continued strength of the organization's exceptional core community banking franchise. Our net interest margin continued to expand with the commercial loan engine producing solid results and the core client-driven deposit franchise displaying its strength. Horizon's credit quality remained excellent and the management team remains diligent on managing core operating expenses.

此外，我們第三季的業績進一步證明了本機構卓越的核心社區銀行特許經營權的持續強勁。我們的淨利差持續擴大，商業貸款業務取得了穩健的業績，以客戶為中心的存款業務也展現了其實力。Horizo​​n的信用品質依然優秀，管理團隊也持續認真管理核心營運費用。

A few key items to note within the quarter results. The margin continued to expand for the eighth consecutive quarter with an exit run rate in September above 4%. Loan balances for the quarter reflect the planned runoff and sale of the lower-yielding indirect auto portfolio. Net of these activities, loans would have increased approximately $48 million, led by the efforts of our commercial banking teams. Our relationship-based deposit portfolios remained resilient in the quarter with predicted outflows within higher cost non-core transactional accounts as outlined in our balance sheet restructuring plan.

本季業績中有幾點要注意。利潤率連續第八個季度持續擴大，9 月的出口運行率超過 4%。本季度貸款餘額反映了計劃中低收益間接汽車貸款組合的清算和出售。扣除這些活動後，貸款金額將增加約 4,800 萬美元，這主要得益於我們商業銀行團隊的努力。本季度，儘管按照我們的資產負債表重組計劃，高成本非核心交易帳戶出現預期資金外流，但我們以客戶關係為基礎的存款組合仍保持韌性。

Additionally, the combined relationship-based fee income categories of service charges, wealth, card and mortgage income performed well and an increase from the third quarter, and expenses outside of the transaction-related activities remain well managed and aligned with our internal and market expectations. This provides confidence in our ability to deliver additional positive operating leverage moving forward with a more effective balance sheet. Heading into Q4 and 2026, we are confident in delivering a superior community banking model to our shareholders, consisting of top-tier financial performance and a balance sheet producing peer-leading capital generation metrics. As we move forward in a front-footed position and with significant positive momentum, we will remain steadfast in our disciplined approach to create durable returns and sustainable long-term value for our shareholders. Turning to Slide 4.

此外，服務費、財富管理費、信用卡費和抵押貸款收入等基於關係的收入類別表現良好，較第三季度有所增長；交易相關活動之外的支出仍然得到良好控制，符合我們的內部和市場預期。這讓我們更有信心在未來透過更有效的資產負債表，實現更大的積極經營槓桿。展望第四季和 2026 年，我們有信心為股東提供卓越的社區銀行模式，包括一流的財務業績和在資本產生指標方面領先同業的資產負債表。憑藉著積極進取的姿態和強勁的發展勢頭，我們將繼續堅持嚴謹的投資策略，為股東創造持久的回報和可持續的長期價值。翻到第4張投影片。

As I mentioned previously, the team did a great job on the balance sheet restructuring with the majority of the initiatives comparing favorably to our expectations in terms of financial outcomes and timing. Our execution left minimal activities for the fourth quarter, which included the redemption of the previous sub debt that has already been completed and the continued modest reduction of select non-relationship high-cost transactional accounts. As previously mentioned, the team has already seen a significant positive increase in performance in September, and we are confident the fourth quarter will provide a clear outlook of Horizon's top-tier financial performance and peer-leading capital generation model. John will provide additional insight into our Q4 outlook and 2026 guidance during this presentation. Overall, a very solid quarter, reflecting the disciplined execution of the balance sheet initiative, combined with the continued strength of the high-performing core banking franchise.

正如我之前提到的，團隊在資產負債表重組方面做得非常出色，大多數舉措在財務結果和時間表方面都符合我們的預期。我們的執行工作使得第四季的活動量極少，其中包括贖​​回先前已完成的次級債務，以及繼續小幅削減部分非關聯高成本交易帳戶。如前所述，該團隊在 9 月份的業績已經取得了顯著的積極增長，我們相信第四季度將清晰展現 Horizo​​​​n 一流的財務業績和領先同行的資本創造模式。約翰將在本次演講中進一步闡述我們第四季的展望和2026年的業績指引。總體而言，這是一個非常穩健的季度，反映了資產負債表計劃的嚴格執行，以及表現優異的核心銀行業務的持續強勁。

A key element of our go-forward plan will be continued profitable loan growth and excellent credit quality that has been a cornerstone of Horizon's success.

我們未來發展計劃的關鍵要素是持續實現盈利性貸款成長和卓越的信貸質量，這一直是 Horizo​​n 成功的基石。

I will transition the presentation to our Executive Vice President and Chief Commercial Banking Officer, Lynn Kerber, who will share highlights for the third quarter on our loan growth and continued excellent credit performance. Lynn?

接下來，我將把演講交給我們的執行副總裁兼首席商業銀行官林恩·克伯，她將分享第三季貸款成長和持續優異信貸表現的亮點。琳恩？

Thank you, Thomas. Net loans held for investment decreased $162 million in the quarter, consisting principally of net growth in commercial loans of $58 million and the $210 million combined impact of quarterly runoff and sale of indirect auto loans. Commercial loans continues to be our primary lending focus at this time, driven by our core franchise and focus on traditional lending products. Net commercial loan growth for the second quarter was $58 million, representing 7% for the linked quarter annualized. Net growth in the quarter also reflects syndication of $10 million in equipment finance instruments with a net gain on sale of $300,000 in the quarter, representing a 3% gain on sale.

謝謝你，托馬斯。本季用於投資的淨貸款減少了 1.62 億美元，主要包括商業貸款淨成長 5,800 萬美元，以及季度間接汽車貸款的清算和出售帶來的 2.1 億美元綜合影響。目前，商業貸款仍然是我們主要的貸款業務重點，這得益於我們的核心業務和對傳統貸款產品的專注。第二季淨商業貸款成長5,800萬美元，以年率計算，較上季成長7%。本季淨成長也反映了 1,000 萬美元的設備融資工具的銀團化，本季淨出售收益為 30 萬美元，相當於 3% 的出售收益。

Overall, our pipeline remains steady and quarterly volumes are consistent with our averages for new origination activity, payoffs and that line of credit activity. As we look forward to 2026, our focus remains on steady diversified growth, disciplined pricing and credit and growing well-rounded customer relationships to drive cross-sell activity in deposit gathering and treasury management services. Residential mortgage lending continues to be a foundation product for the bank, and volume has been predominantly sold in the secondary market to align with our balance sheet strategies and the generation of gain on sale fee income. Balances for the third quarter were essentially flat in alignment with this strategy. Turning to credit quality and the allowance.

整體而言，我們的業務流程保持穩定，季度交易量與新業務發放、還款和信貸額度活動的平均水準一致。展望 2026 年，我們將繼續專注於穩定多元化成長、嚴格的定價和信貸，以及發展完善的客戶關係，以推動存款募集和資金管理服務的交叉銷售活動。房屋抵押貸款仍然是該銀行的基礎產品，其交易量主要在二級市場出售，以符合我們的資產負債表策略和產生銷售佣金收入。第三季收支基本持平，與此策略相符。接下來討論信用品質和貸款額度。

Credit quality remains satisfactory with substandard loans and nonperforming loans representing 1.31% and 0.64%, respectively, consistent with credit performance over the past year. Net charge-offs were $800,000 in the quarter, representing 7 basis points on an annualized basis, which compares to historical performance over the past year. Year-to-date charge-offs totaled $1.9 million, representing an annualized charge-off rate of 5 basis points. Finally, our allowance for credit losses decreased to $50.2 million, representing an allowance to credit loss to loans held for investment of 1.04%. The reduction of $4.2 million consisted predominantly of release of reserves related to the indirect auto loan portfolio in the amount of $3.1 million as well as the benefit of a reduction in loss rate experience in the portfolio.

信貸品質依然令人滿意，次級貸款和不良貸款分別佔1.31%和0.64%，與過去一年的信貸表現一致。本季淨沖銷額為 80 萬美元，以年率計算為 7 個基點，與過去一年的歷史業績相比。今年迄今的核銷總額為 190 萬美元，年化核銷率為 5 個基點。最後，我們的信貸損失準備金減少至 5,020 萬美元，投資貸款的信貸損失準備金率為 1.04%。減少的 420 萬美元主要包括釋放與間接汽車貸款組合相關的準備金 310 萬美元，以及該組合損失率經驗的降低所帶來的收益。

Provision for credit losses was a net release of $3.6 million, which is a combination of the allowance reduction of $4.2 million, replenishment of quarterly charge-offs, modest changes in unfunded commitments and the release of the prior reserve on the Held-To-Maturity portfolio. We continue to monitor economic conditions and future provision expense will be driven by anticipated loan growth and mix, economic factors and credit quality trends.

信貸損失準備金淨釋放 360 萬美元，其中包括撥備減少 420 萬美元、季度核銷的補充、未撥備承諾的適度變化以及對持有至到期投資組合的先前準備金的釋放。我們將繼續關注經濟狀況，未來的撥備支出將受預期貸款成長和結構、經濟因素和信貸品質趨勢的影響。

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

現在我想把麥克風交還給湯瑪斯，他將概述我們的存款趨勢。

Thank you, Lynn. Moving on to our deposit portfolio displayed on Slide 9. Horizon's core relationship balances continue to show the strength of the franchise's community banking model. Noninterest balances remain resilient with planned outflow and higher rate transactional balances aligned with the balance sheet transformation. We are very pleased with the stability of the core client base relationships and optimistic about this segment of our deposit portfolio, fueling our loan growth in subsequent quarters.

謝謝你，琳恩。接下來，我們來看看投影片 9 上展示的存款組合。Horizo​​n的核心客戶關係餘額持續展現出該特許經營模式的社區銀行模式的優勢。非利息餘額保持穩健，計劃外流和較高利率的交易餘額與資產負債表轉型保持一致。我們對核心客戶群關係的穩定性感到非常滿意，並對我們存款組合的這一部分持樂觀態度，這將推動我們在接下來的幾個季度實現貸款成長。

Additionally, we believe our deposit portfolio continues to be well positioned to benefit the organization moving forward with its granular composition and long-standing relationships in our local markets. The team has made significant improvements in growth, enhancing our go-to-market activities for treasury management services and proven its agility by leveraging our excellent branch distribution and multiple funding options to create shareholder value. Let me now hand the presentation over to our Executive Vice President and Chief Financial Officer, John Stewart, who will walk through additional third quarter financial highlights and our outlook for the remainder of 2025 and into 2026.

此外，我們相信，憑藉其精細的組成和在本地市場建立的長期關係，我們的存款組合將繼續為機構未來的發展帶來益處。該團隊在成長方面取得了顯著進步，加強了我們在資金管理服務的市場推廣活動，並透過利用我們優秀的網點分佈和多種融資選擇來創造股東價值，證明了其敏捷性。現在，我將把演講交給我們的執行副總裁兼財務長約翰·斯圖爾特，他將詳細介紹第三季度的其他財務亮點以及我們對 2025 年剩餘時間和 2026 年的展望。

Thank you, Thomas. Turning to Slide 10. Q3 marks the eighth consecutive quarter of net interest margin expansion, totaling 110 basis points from Q4 of 2023. And as I will discuss in a minute, the expansion is planned to continue. That said, these results are the direct result of the execution of a series of intentional initiatives and transactions to reposition the mix and profitability of our balance sheet, which culminated in this quarter's activities.

謝謝你，托馬斯。翻到第10張投影片。第三季是淨利差連續第八個季度擴張，比 2023 年第四季擴大了 110 個基點。正如我稍後將要討論的，擴張計劃還將繼續。也就是說，這些結果是我們為重新調整資產負債表的結構和盈利能力而採取的一系列有意識的舉措和交易的直接結果，並在本季度的各項活動中達到了頂峰。

Most notably, we have completely changed the company's risk profile, significantly curtailing both liquidity and interest rate risk through these actions, while establishing a pro forma cash flow profile that should create durable returns for our shareholders.

最值得注意的是，我們徹底改變了公司的風險狀況，透過這些措施大幅降低了流動性風險和利率風險，同時建立了一個預期現金流狀況，這將為我們的股東創造持久的回報。

Specific to Q3, the net interest margin increased by 29 basis points to 3.52%. While the margin this quarter was partially impacted by the repositioning of the balance sheet prior to those events, we continue to see the positive momentum in the margin, driven by the same key organic trends we have been experiencing for several quarters now, well-priced commercial loan growth leading the asset remix story, while core deposit balances continue to deliver stable funding costs. Turning to the balance sheet repositioning. There was only a partial quarter impact in the 3.52% margin. The common equity raise closed on August 22, which was the same day all the bond sales were completed.

具體到第三季度，淨利差增加了 29 個基點，達到 3.52%。儘管本季利潤率受到先前資產負債表調整的部分影響，但我們仍然看到利潤率呈現積極勢頭，這得益於我們幾個季度以來一直經歷的關鍵內生趨勢：定價合理的商業貸款增長引領資產重組，而核心存款餘額繼續提供穩定的融資成本。接下來討論資產負債表調整。3.52% 的利潤率僅受到部分季度的影響。普通股融資於 8 月 22 日完成，當天所有債券銷售也全部完成。

$535 million of the reinvestment settled during the last 10 days of August, with the remaining roughly $45 million in purchases settling over the first 10 days of September. The Federal Home Loan Bank advances were also repaid during the last week of August. The $100 million subordinated debt issuance closed the last week of August and the targeted high-cost transactional funds runoff of about $275 million during the quarter took place over the last few weeks of September. Therefore, while our September margin exceeded 4%, it too, does not capture the full benefit of the balance sheet repositioning. As you saw on Slide 4, there are still a few items yet to make their way through the margin.

8 月最後 10 天，5.35 億美元的再投資完成結算；剩餘的約 4,500 萬美元購買款項在 9 月前 10 天完成結算。聯邦住房貸款銀行的預付款也在八月的最後一周償還完畢。1億美元的次級債務發行於8月最後一周完成，而本季約2.75億美元的目標高成本交易資金的償還工作則在9月最後幾週完成。因此，雖然我們 9 月的利潤率超過了 4%，但這也沒有完全反映資產負債表調整帶來的好處。正如你在第 4 張投影片上看到的，還有一些項目尚未通過頁邊空白處。

First, a full month of the $275 million in deposit runoff from September; second, the balance of the $125 million in targeted deposit runoff remaining as of quarter end, which we anticipate will largely take place over the fourth quarter.

首先，9 月 2.75 億美元的存款流失將持續一個月；其次，截至季末剩餘的 1.25 億美元定向存款流失餘額，我們預計這部分流失將主要在第四季發生。

And finally, the October 1 payoff of the $56.5 million of subordinated debt, which carried a cost of about 9.8%. Therefore, while we are expecting the margin to expand further in Q4 into the range of 4.15% to 4.25%, we should exit the year a bit above that in the range of 4.2% to 4.3%, where it should generally remain through 2026. This view is consistent with our prior expectations following the balance sheet efforts.

最後，10 月 1 日償還了 5,650 萬美元的次級債務，該債務的成本約為 9.8%。因此，雖然我們預計第四季度利潤率將進一步擴大到 4.15% 至 4.25% 的範圍內，但到年底時，利潤率應該會略高於這個範圍，達到 4.2% 至 4.3%，並且到 2026 年，利潤率應該會基本保持在這個範圍內。這一觀點與我們先前在資產負債表調整工作後的預期相符。

Slide 11 is a new slide showing an improved return, more liquid and lower risk profile of the securities portfolio in June compared with September. As you can see in the top left quadrant, the mix of the portfolio is significantly different, carrying less credit risk and a greater mix of highly liquid assets, and it is earning more with less overall duration. Additionally, the reliance on investments in our earning asset base has been reduced and notably, the portfolio uses significantly less capital. All that said, the new portfolio was constructed to complement the interest rate risk profile we set out to achieve with the new balance sheet, which is relative neutrality to changes in rates.

第 11 張投影片是一張新投影片，顯示與 9 月相比，6 月證券投資組合的回報有所提高，流動性更強，風險更低。從左上象限可以看出，投資組合的組成明顯不同，信用風險更低，高流動性資產的比例更高，因此在整體久期更短的情況下，收益更高。此外，我們對獲利資產基礎投資的依賴程度降低，值得注意的是，該投資組合所使用的資本明顯減少。綜上所述，新投資組合的建構是為了配合我們為實現新的資產負債表而設定的利率風險狀況，即對利率變動保持相對中立。

We intentionally purchased cash flows that are already fully extended with prepayment optionality that is significantly out of the money for the underlying borrowers. Our objective was to build a portfolio of stable cash flows at strong yields that complements the rest of the balance sheet and provides the functional liquidity it is ultimately there for. As you can see on Slide 12, reported noninterest income was materially impacted by the balance sheet actions this quarter and included the $299 million loss on the sale of securities and the $7.7 million realized loss on the sale of the indirect auto portfolio, which includes the write-off of any related unamortized dealer reserve. The auto loss was partially offset by the associated release of the $3.1 million allowance for credit loss against this portfolio, all of which was contemplated in our original planning. Excluding these items, which will not carry forward in our results, our fee-based businesses performed well during the quarter and for the first time, included about $300,000 of gains on the sale of syndicated equipment finance credits.

我們特意購買了已經完全延期且具有提前還款選擇權的現金流，這些現金流對於基本借款人來說嚴重處於價外狀態。我們的目標是建立一個具有穩定現金流和強勁收益率的投資組合，以補充資產負債表的其他部分，並提供其最終所需的流動性。如第 12 頁所示，本季報告的非利息收入受到資產負債表行動的重大影響，其中包括出售證券的 2.99 億美元損失和出售間接汽車投資組合的 770 萬美元已實現損失，其中包括對任何相關的未攤銷經銷商準備金的註銷。汽車損失部分被該投資組合中 310 萬美元的信貸損失準備金的釋放所抵消，所有這些都在我們最初的計劃中有所考慮。除這些不會影響我們業績的項目外，我們基於費用的業務在本季度表現良好，並且首次計入了約 30 萬美元的銀團設備融資信貸銷售收益。

This is a business line we expect will grow in contribution to our fee income throughout 2026. Additionally, service charges and interchange fees reflect our concerted efforts to grow the core client base and seasonally strong market activity.

我們預計，到 2026 年，這項業務對我們費用收入的貢獻將持續成長。此外，服務費和交換費反映了我們為擴大核心客戶群和應對季節性強勁市場活動而做出的共同努力。

Looking ahead to the fourth quarter, while we do anticipate some normal seasonal headwinds to impact service charges, interchange and mortgage and therefore, expect Q4 fees to approximate $11 million, this result would still express high single-digit year-over-year growth, excluding the securities loss in the year ago period.

展望第四季度，雖然我們預計一些正常的季節性不利因素將影響服務費、交換費和抵押貸款，因此預計第四季度費用約為 1100 萬美元，但若不計去年同期證券損失，這一結果仍將實現高個位數的同比增長。

On Slide 13, here, too, you can see the quarterly expense results were also impacted by our balance sheet activities. Specifically, the quarter includes the $12.7 million prepayment penalty on the repayment of the higher cost $700 million in Federal Home Loan Bank advances. Additionally, the quarter included about $900,000 of expenses directly attributable to these efforts that are not expected to carry forward. Excluding these 2 items, total noninterest expense was roughly flat linked quarter and is trending favorably compared with our previously issued full year guidance. Turning to capital on Slide 14.

在第 13 張投影片中，您也可以看到季度費用結果也受到了我們資產負債表活動的影響。具體而言，該季度包括對償還聯邦住房貸款銀行7億美元高成本貸款的1,270萬美元提前還款罰金。此外，本季還包括約 90 萬美元的直接歸因於這些努力的費用，預計這些費用不會結轉到下一年。剔除這兩項支出後，非利息支出總額與上季基本持平，並且與我們先前發布的全年預期相比，呈現出良好的發展趨勢。請參閱第 14 張投影片，以了解資本相關內容。

While each of these metrics was ultimately impacted by the balance sheet activities, in all cases, the outcome exceeded our initial projections. It resulted in better-than-expected execution, resulting in lower realized losses. Just a couple of quick comments on a few of the metrics. First, the leverage ratio is expected to recover back closer to Q2 levels in the fourth quarter as the balance sheet reduction moves its way through the average asset denominator. Second, the total risk-based ratio is expected to revert back lower in Q4, closer to Q2 levels as the September 30 Tier 2 capital balance includes both the new and previously existing subordinated debt issuances.

雖然這些指標最終都受到了資產負債表活動的影響，但在所有情況下，結果都超過了我們最初的預測。結果執行情況優於預期，從而降低了實際損失。關於其中幾個指標，我簡單提幾點意見。首先，隨著資產負債表縮減逐步影響平均資產分母，預計第四季槓桿率將回升至接近第二季的水平。其次，由於 9 月 30 日的二級資本餘額包括新發行的和以前存在的次級債務，預計第四季度總風險比率將回落至較低水平，更接近第二季度的水平。

As of October 1, we have repaid the more expensive $56.5 million prior issuance. As we have previously communicated, we are comfortable with the company's current capital position, particularly against what is a significantly derisked balance sheet. Additionally, as our outlook suggests, our peer-leading levels of profitability will accrete capital very quickly, which you will see in the coming quarters.

截至 10 月 1 日，我們已償還了先前發行的 5,650 萬美元高價債券。正如我們之前所溝通的那樣，我們對公司目前的資本狀況感到滿意，尤其是在資產負債表風險大幅降低的情況下。此外，正如我們的展望所示，我們領先同業的獲利水準將很快累積資本，您將在接下來的幾個季度看到這一點。

To provide some clarity on the other side of the balance sheet transition, we have provided an outlook specifically for the fourth quarter on Slide 15. Overall, we are pleased with the progress and the outcome of the balance sheet efforts, some of which will continue here in the fourth quarter. More notably, the strength of the core community banking franchise remains intact, and we are well positioned to deliver durable top-tier performance metrics starting in the fourth quarter.

為了更清楚地說明資產負債表轉型後的情況，我們在第 15 張投影片中特別提供了第四季的展望。總體而言，我們對資產負債表工作的進展和成果感到滿意，其中一些工作將在第四季度繼續進行。更值得注意的是，核心社區銀行業務的實力依然穩固，我們已做好充分準備，從第四季開始實現持久的一流業績指標。

There are a few items I'd like to highlight. Growth in loans held for investments is expected to remain in line with what we experienced in Q3 on a normalized basis, which is for mid-single-digit growth on an annualized basis. Most of the growth is expected to come from our organic commercial growth engine. Deposit balances will decline in Q4, primarily related to the remaining targeted reduction of high-cost non-relationship balances. Non-FTE net interest income is expected to grow in the high single-digit range from the reported Q3 figure.

我想重點強調幾點。預計用於投資的貸款成長將與我們在第三季經歷的成長保持一致（按正常水平計算），即按年化計算實現中等個位數成長。預計大部分成長將來自我們的內生商業成長引擎。第四季存款餘額將下降，主要與高成本非關係型帳戶餘額的剩餘定向減少有關。非全職員工淨利息收入預計將比第三季公佈的數據實現高個位數成長。

This will be driven by the continued expansion of the net interest margin into the range of 4.15% to 4.25%, while average earning assets will decline from Q3 to slightly below $6 billion from the impact of the planned deposit runoff and the subordinated debt redemption. This outlook does include two 25 basis point rate cuts in October and December. Total reported expenses should approximate $40 million for the quarter, but will include about $700,000 of nonrecurring expense from the write-off of the unamortized issuance cost from the previously existing sub debt position. The Q4 effective tax rate should be in the range of 18% to 20%, which is attributable to overall stronger pretax income and a significantly smaller tax-exempt municipal exposure. Given the reduced tax-exempt exposure, it should also be noted that our fully tax equivalent adjustment to income is expected to be about $1 million per quarter going forward or about half of the prior run rate.

這將主要得益於淨利差持續擴大至 4.15% 至 4.25% 的區間，而受計劃中的存款縮減和次級債務贖回的影響，平均生息資產將從第三季開始下降至略低於 60 億美元。這項預期包括10月和12月兩次25個基點的降息。本季度報告的總支出應約為 4,000 萬美元，但其中將包括約 70 萬美元的非經常性支出，該支出來自註銷先前存在的次級債務中未攤銷的發行成本。第四季實際稅率應在 18% 至 20% 之間，這主要歸因於稅前收入整體增強以及免稅市政債券曝險大幅減少。鑑於免稅額度減少，還應注意的是，我們預計未來每季的完全稅收等效收入調整約為 100 萬美元，約為先前運行速度的一半。

As our fourth quarter outlook illustrates, we are pleased with the performance levels Horizon will achieve going forward. Additionally, while we are currently finalizing our budget for 2026, we would like to provide a few comments on our initial view for the year. Overall, we are in alignment with the current consensus estimate for earnings per share at approximately $2 per share. Our initial look at full year non-FTE net interest income is for growth in the low double-digit range. Our FTE adjustment for 2026 should approximate $4 million, as noted earlier.

正如我們第四季度的展望所示，我們對 Horizo​​​​n 未來將達到的業績水平感到滿意。此外，雖然我們目前正在敲定 2026 年的預算，但我們想就我們對這一年的初步展望提出一些意見。總體而言，我們與目前市場對每股盈餘的普遍預期相符，約為每股 2 美元。我們初步預計全年非全職員工淨利息收入將達到兩位數低成長。如前所述，我們 2026 年的 FTE 調整額應約為 400 萬美元。

The net interest margin on an FTE basis should remain relatively consistent in the range of 4.2% to 4.3%, which is in line with our prior projections following the balance sheet repositioning.

以全職員工人數計算的淨利差應保持在 4.2% 至 4.3% 的相對穩定範圍內，這與我們資產負債表調整後的先前預測一致。

Our current view on fees and expenses is generally consistent with current consensus expectations. Similar to Q4, the effective tax rate is expected to approximate 18% to 20%. Overall, 2026 should be a strong year for Horizon, steady growth with durable peer-leading returns on assets, returns on tangible common equity and internal capital generation. With that, I will turn the call back over to Thomas.

我們目前對費用和支出的看法與目前的普遍預期基本一致。與第四季類似，實際稅率預計在 18% 至 20% 之間。總體而言，2026 年對於 Horizo​​n 來說應該是強勁的一年，穩定成長，資產回報率、有形普通股回報率和內部資本產生率均保持同業領先。這樣，我就把電話轉回給湯瑪斯了。

Thank you, John, and I appreciate the summary of the third quarter outlook for Q4 and initial guidepost for 2026. As you can see from our financial results, we are an organization that will quickly realize top-tier financial metrics and peer-leading capital generation performance. We expect that the well-executed balance sheet restructuring, combined with Horizon's long-standing and high-performing community banking model will deliver durable returns and sustainable long-term value for our shareholders.

謝謝你，約翰，我很欣賞你對第三季展望、第四季展望以及2026年初步指導方針的總結。從我們的財務表現可以看出，我們是一家能夠迅速實現頂級財務指標和同業領先的資本創造績效的組織。我們預計，妥善執行的資產負債表重組，加上 Horizo​​​​n 長期以來表現優異的社區銀行模式，將為我們的股東帶來持久的回報和可持續的長期價值。

As we move into 2026, we will be front-footed in our optionality to create further shareholder value through a disciplined operating model, focus on profitable growth and smart stewardship of the positive capital generation platform we have created. The third quarter was an excellent performance on many fronts for the team, and we look forward to continuing to deliver on our promise to create significant shareholder value moving forward.

展望 2026 年，我們將憑藉嚴謹的營運模式、專注於獲利成長以及對我們創建的積極資本產生平台的明智管理，在創造更多股東價值方面佔據先機。第三季團隊在許多方面都表現出色，我們期待繼續履行承諾，為股東創造巨大價值。

This is the end of our prepared remarks, and I welcome the operator to open up the lines for questions for our management team.

我們的演講稿到此結束，歡迎接線生開通電話，接受各位向我們管理團隊提問。

Brendan Nosal, Hovde Group.

Brendan Nosal，Hovde集團。

Maybe just kind of starting at a top-level strategic view here. It's just -- it's a vastly different company today than it was 1, 2, 3 years ago. And in recent years, the narrative has just been so focused around the securities book and capital. And now that you finally kind of put that issue to bed, can you just kind of update us on what you think the new narrative for Horizon is and the next major areas of strategic emphasis?

或許我們可以先從高層戰略層面著手。如今的這家公司與 1、2、3 年前相比，已經截然不同了。近年來，討論的焦點一直集中在證券帳簿和資本。既然您終於解決了這個問題，能否向我們介紹一下您認為 Horizo​​n 的新發展方向以及下一個主要的策略重點領域？

Thanks, Brendan. Thomas. I appreciate the question very much. We're very pleased with the organization as it exits Q3 and goes into Q4. And I think our financials are showing what we consider a new horizon heading into 2026.

謝謝你，布倫丹。托馬斯。非常感謝您的提問。我們對公司在第三季末和第四季初的組織架構感到非常滿意。我認為我們的財務狀況表明，我們預計在 2026 年將迎來新的發展前景。

What you'll see with us is that we're going to be very consistent about the positive stewardship of capital that we're going to be delivering to our shareholders on a go-forward basis. Our new balance sheet is positioned well to generate capital at a significantly greater pace than before. We're also going to be very pleased with the optionality that this is going to present the organization, different than perhaps what you said before, we are a little bit more focused on the securities positioning. But again, we're going to be very measured in our deployment strategies and don't feel like we need to go out and quickly do something, but rather take a very measured approach on profitable deployment options going forward. That could be, for us, as we move into '26, very logical and accretive M&A that's additive to the community banking platform that we just created, expansion or lift of teams or acquisition of fee income platforms that create durable and franchise value earnings profile.

您將會看到，我們將始終如一地對資本進行積極的管理，從而持續為股東創造回報。我們新的資產負債表結構良好，能夠以比以往更快的速度創造資本。我們也對這將為公司帶來的選擇權感到非常高興，與您之前所說的可能不同，我們更關注證券配置。但是，我們再次強調，我們的部署策略將非常謹慎，我們並不覺得需要倉促行事，而是會採取非常謹慎的方式來選擇有利可圖的部署方案。對我們來說，隨著我們邁入 2026 年，這可能意味著非常合乎邏輯且具有增值意義的併購，這些併購可以增強我們剛剛創建的社區銀行平台，擴大或提升團隊，或者收購費用收入平台，從而創造持久的特許經營價值收益模式。

And also, we're going to be very front-footed position moving to '26. But again, we'll be very respectful of capital deployment strategies and making sure that we enhance shareholder value.

而且，我們將在2026年採取非常積極主動的策略。但是，我們始終尊重資本部署策略，並確保提升股東價值。

Okay. Maybe just as a follow-up to that on capital specifically. I guess, first, are there any other potential outlets for capital outside of organic loan growth and M&A? And then second, now that there's a potential M&A element to the story, just kind of take us through some of the criteria, whether it's size or geography or business mix that you would be interested in?

好的。或許可以作為資本問題的進一步探討。首先，除了自然貸款成長和併購之外，還有其他潛在的資金來源嗎？其次，既然故事中出現了潛在的併購元素，請您介紹一下您感興趣的一些標準，例如規模、地理或業務組合？

Sure. Thanks for the follow-up question. Specifically in M&A, Horizon has a great history of M&A success over -- for many decades. It's really been built on the fact of our great brand reputation in our core markets and also being just a really good company to transact with. As you look over the last couple of years, we have not been as well positioned in the space because of some of the earnings power that we had at the time and also the risk elements within the balance sheet.

當然。感謝你的後續提問。具體來說，在併購領域，Horizo​​n 在過去幾十年中取得了輝煌的併購成功歷史。這確實建立在我們核心市場良好的品牌聲譽以及我們是一家非常好的合作公司。回顧過去幾年，由於當時的獲利能力以及資產負債表中的風險因素，我們在該領域的定位並不理想。

Heading into 2026, we have a significantly different and more efficient and derisked balance sheet that's going to be producing peer-leading financial metrics and top-tier capital generation.

展望 2026 年，我們將擁有截然不同、更有效率且風險更低的資產負債表，這將帶來同業領先的財務指標和一流的資本創造能力。

Successful M&A for us is going to be consistently focused around franchises that add to the current franchise that we have that we feel is extremely profitable. The size will probably be between $300 million, $400 million up to several billion dollars. But again, it's going to be logical and very accretive to the franchise from a space. We think there's great opportunities for us in Michigan and also in our core markets of Indiana. And again, from a positioning standpoint, Horizon will be in a stronger position and very much more front-footed.

對我們來說，成功的併購將始終圍繞著那些能夠為我們現有特許經營權增添價值的特許經營權展開，我們認為這些特許經營權非常有利可圖。規模可能在3億美元、4億美元到數十億美元之間。但從某種意義上說，這對該系列作品來說是合乎邏輯且非常有利的。我們認為我們在密西根州以及我們的核心市場印第安納州都擁有巨大的發展機會。從位置優勢來看，Horizo​​n 將處於更有利的地位，並且會更加主動。

Again, the profile of the organization is significantly different and more optimistic. And also the balance sheet is more attractive towards potential partners, who would look at Horizon as an opportunity for them to be a long-term partner with us.

此外，該組織的形像也截然不同，更加樂觀。此外，資產負債表對潛在合作夥伴也更具吸引力，他們會將 Horizo​​n 視為與我們建立長期合作夥伴關係的機會。

Terry McEvoy, Stephens.

特里·麥克沃伊，史蒂芬斯。

Maybe start with a question for John. You mentioned the balance sheet being pretty rate neutral in terms of changes. When I just look at the mix today, a little more commercial heavy, fewer higher beta deposits and probably less fixed rate assets, which would tell me more asset sensitivity. Could you just kind of tell me where I'm wrong and how you can -- how you support that rate-neutral position?

或許可以先問約翰一個問題。你曾提到資產負債表對利率變動基本上保持中性。如果僅從現今的投資組合來看，商業存款佔比略高，高貝塔係數存款較少，固定利率資產可能也較少，這表示資產敏感度較高。您能否告訴我我錯在哪裡，以及您如何支持利率中立立場？

Yes. Terry, thanks for the question. I appreciate that. Yes, I think as you look forward, I mean, the changes in the mix of the balance sheet would certainly lean us to be very modestly asset sensitive. We do a lot of -- obviously, the shock analysis, a lot of non-parallel shifts.

是的。特里，謝謝你的提問。我很感激。是的，我認為展望未來，資產負債表結構的調整肯定會使我們對資產的敏感度保持在非常適度的水平。我們做了很多——顯然，衝擊分析，很多非平行變化。

And we really just don't see much change if we get a steepening or a flattening of the curve. We've got about 25% of loans are going to be floating on the asset side, a very modest amount of the securities portfolio is going to be floating. And then on the other side of the balance sheet, we do have some callable CDs in the structure and some really good deposit positioning such that we don't think that there'll be much of an impact from changes in rates either way.

如果曲線變得更陡峭或更平緩，我們實際上看不到太大的變化。資產方面，我們約有 25% 的貸款將以浮動利率出售；證券組合中只有非常小一部分將以浮動利率出售。另一方面，在資產負債表上，我們的結構中確實有一些可贖回的定期存單，存款配置也非常好，因此我們認為利率的變化不會產生太大的影響。

And then maybe, Thomas, a follow-up question for you. There's the legacy bank in Michigan where generations of families and businesses have banked, that's going to be changing names. I guess my question is, how do you play more offense? And how do you balance that with some of the expense outlook that John talked about?

湯瑪斯，或許我還有一個後續問題想問你。密西根州有一家歷史悠久的銀行，幾代家庭和企業都曾在這裡開戶，但它即將更名。我想問的是，如何才能打出更具進攻性的比賽？那麼，你如何平衡這一點與約翰提到的一些支出預期呢？

Thanks, I appreciate it very much. First, I agree. I think the opportunity for growth in Michigan is going to be very optimistic going forward. There are some transactions that are happening in the marketplace that are giving us some opportunities. I think we also need to remember, over the course of the last 2 years, from an offensive standpoint, specifically in commercial and treasury, we've made some really good human capital decisions there and some great teams in Grand Rapids, Lansing, Detroit in those growth markets and also Southwest Michigan.

謝謝，非常感謝。首先，我同意。我認為密西根州未來的發展前景非常樂觀。市場上發生的一些交易為我們帶來了一些機會。我認為我們還需要記住，在過去的兩年裡，從進攻的角度來看，尤其是在商業和財務方面，我們做出了一些非常好的人力資本決策，並在大急流城、蘭辛、底特律等增長型市場以及密西根州西南部組建了一些優秀的團隊。

Those teams are in place and many of those individuals are now coming off their non-competes. Lynn has also done a really nice job with the treasury management franchise. We've added about 40% more salespeople. A lot of those individuals are in the Michigan market. So from an expense base, I don't think we're really looking to add a lot to our expense base in the franchise versus more take advantage of the expenses that we've already taken and really be able to open our stride on new growth.

這些團隊已經組成完畢，其中許多成員的競業禁止協議也即將到期。Lynn在財務管理方面也做得非常出色。我們增加了約 40% 的銷售人員。這些人中有很多都在密西根州市場。因此，從支出基礎來看，我認為我們並不打算在特許經營中大幅增加支出，而是希望更多地利用我們已經承擔的費用，真正地在新增長方面大步前進。

Nathan Race, Piper Sandler.

內森·雷斯，派珀·桑德勒。

Congrats on all the progress coming out of the quarter. Just going back to the margin discussion, John, I wonder if you could just help us just in terms of with the securities portfolio repositioning, how much cash flow coming off each quarter over the next 12 months or so? And also kind of what the back book repricing tailwinds look like on the commercial real estate portfolio that's fixed.

恭喜本季取得的所有進展。回到保證金的討論，約翰，我想請你幫我們分析證券投資組合重新配置方面的問題，在接下來的 12 個月左右，每個季度會產生多少現金流？此外，還可以大致了解固定收益商業房地產投資組合的帳面重新定價利好因素。

Sure. Thanks, Nathan. I'll pass the second question over to Lynn and answer your first question first. In terms of the cash flows coming off the securities portfolio, honestly, very minimal. That was part of the repositioning efforts.

當然。謝謝你，內森。第二個問題我交給琳恩回答，我先回答你的第一個問題。就證券投資組合產生的現金流而言，坦白說，非常少。那是重新定位工作的一部分。

As you could see on the slide, we bought a lot of discounted cash flows. So those are bonds with underlying coupons kind of in the 2s and 3s. And so that's what I was referring to when I said the optionality for the -- the prepayment optionality for the borrowers underlying those are de minimis. So as we look out over the next year, it's probably only, call it, $10 million to $15 million worth of cash flow coming off that portfolio each quarter, not much.

正如你在幻燈片上看到的，我們購買了大量的折現現金流。所以這些債券的票息大概在 2% 到 3% 之間。所以，我之前說的借款人提前還款的選擇權微乎其微，指的就是這個意思。因此，展望未來一年，該投資組合每季可能只會產生 1,000 萬至 1,500 萬美元的現金流，並不多。

Yes. In regards to commercial real estate repricing, I don't have the prepared dollars for you this morning. But when we've done that analysis in the past, it's a fairly minor portion of our book. As I recall, it was less than 5% per year for 2026. So a pretty small amount.

是的。關於商業房地產重新定價的問題，我今天早上沒有準備好的資金。但我們過去進行這類分析時，它在我們書中只佔很小一部分。我記得，到 2026 年，這個數字每年不到 5%。所以數量很少。

Okay. Great. And then, John, I think you mentioned about 17% of the portfolio is floating on the loan side of things. Is there managed deposit rates that you can kind of reprice kind of in lockstep with Fed rate cuts at a similar proportion, just given some of the changes in the deposit portfolio in 3Q?

好的。偉大的。約翰，我想你有提到過，大約 17% 的投資組合是貸款方面的。鑑於第三季存款組合的一些變化，是否有可以與聯準會降息同步、以類似比例重新定價的管理存款利率？

Sorry, just repeat the question again one more time. I was -- the number I quoted on the repricing on the loan side was about 25%. If you could just repeat the second question?

不好意思，請您再重複一次問題。我當時給出的貸款重新定價報價約為 25%。您能再重複一次第二個問題嗎？

Yes. No, I'm just trying to understand kind of where the short-term rate-sensitive deposits stood at in terms of what you can reprice kind of lockstep with what you have repricing in terms of those floating rate loans.

是的。不，我只是想了解短期利率敏感存款的定價情況，以及它們能否與浮動利率貸款的定價同步調整。

Yes, sure. I mean we do still have a core public funds business within the balance sheet. So the transactional -- higher cost transactional balances that we were intentionally running off does leave us with -- we do still have some public funds exposure that will reprice lower. We've seen some of that recently. We do still have some commercial betas that we can bring down or commercial deposits with some nice betas that we can bring down.

當然可以。我的意思是，我們的資產負債表上仍然保留著一項核心的公共基金業務。因此，我們有意減少的交易成本較高的交易餘額，確實為我們留下了一些公共資金敞口，這些敞口將會重新定價降低。我們最近已經看到了一些這樣的例子。我們仍然有一些商業測試版可以降低價格，或者有一些不錯的測試版商業存款可以降低價格。

In those assumptions, we actually don't assume much repricing downside beta with the consumer balances really at all, but that should be enough to get us there. As I also mentioned, we do have some callable brokers in there that will give us some really good optionality if that market continues to cooperate.

在這些假設中，我們實際上並沒有假設消費者餘額的重新定價下行β值有多大，但這應該足以讓我們達到目標。正如我之前提到的，我們有一些可贖回的經紀商，如果市場繼續配合，它們將為我們提供非常好的選擇權。

Okay. Great. And then maybe one last one for Thomas. Just going back to your M&A commentary. Curious if you're just seeing any kind of increase in dialogue or opportunities to maybe consolidate some of those subscale institutions across your footprint or is still somewhat of a slower pace of conversations these days just relative to the increase in activity we're seeing across the industry these days?

好的。偉大的。最後，或許還可以給湯瑪斯最後一個。回到你之前關於併購的評論。我很好奇，您是否看到對話有所增加，或者有機會整合您業務範圍內的一些規模較小的機構，還是說，與目前整個行業的活躍度相比，如今的對話節奏仍然比較慢？

Thanks for the question. I think starting end of last year, beginning of this year, the increased dialogue was definitely evident. I think there was a little bit of uncertainty at the time of whether or not you should transact from a seller perspective. As you've seen, there's been a couple of activities here in the marketplace on footprint, [ e-commerce ] activities we've been involved in, which is great from a brand reputation and also individuals looking for Horizon as a potential partner. But as I mentioned previously, our former balance sheet probably didn't position us as well to get us to the finish line.

謝謝你的提問。我認為從去年年底到今年年初，對話的增加是顯而易見的。我認為當時從賣家的角度來看，對於是否應該進行交易存在一些不確定性。正如你所看到的，我們在市場上開展了一些活動，包括拓展業務範圍和電子商務活動，這對品牌聲譽以及那些將 Horizo​​​​n 視為潛在合作夥伴的人來說都是好事。但正如我之前提到的，我們先前的資產負債表可能並沒有讓我們處於能夠順利到達終點的最佳位置。

We anticipate that these activities will still continue in '26. I think as you're seeing out in the overall environment as a whole, it's a good market to transact. I think folks are -- if they're looking to sell right now, it's probably a good time to have that consideration at their Board level discussions and our footprints in Michigan and Indiana. We feel like we've positioned ourselves at a higher level and a more attractive position for execution on those.

我們預計這些活動在 2026 年仍將持續。我認為，從整體環境來看，這是一個很好的交易市場。我認為，如果人們現在正打算出售公司，現在可能是他們在董事會層面討論此事以及我們在密西根州和印第安納州的業務佈局的好時機。我們感覺我們已經把自己定位在了更高的層次，並且在執行這些目標方面處於更有利的地位。

Damon DelMonte, KBW.

Damon DelMonte，KBW。

Just had a question on credit and kind of, if you, Thomas, give a little bit of color on maybe some of the trends you guys are just seeing. NPAs were up $5 million quarter-over-quarter, not a big amount. But just wondering, are there any areas of the portfolio where maybe you're starting to see some signs of stress that are requiring a little bit more attention?

我有個關於信貸的問題，托馬斯，你能不能稍微解釋一下你們目前觀察到的一些趨勢？不良貸款季增 500 萬美元，金額不大。但我想問一下，您的投資組合中是否有某些領域開始出現一些壓力跡象，需要您多加關注？

Yes, I'll pass this one over to Lynn. She can walk you through some of what we saw in NPAs and how our commercial credit is looking.

好的，這事兒我交給琳恩來處理。她可以帶你了解我們在不良資產方面看到的一些情況，以及我們的商業信貸狀況。

On commercial portfolio, if you turn to our slide, Page 8, where we have our asset quality metrics, first of all, you can look at our substandard loans, and those have been very consistent and actually went down just a bit this quarter. So when you see the increase in nonperforming loans, it's really just a migration in that bucket. We had 2 commercial loans that moved to nonaccrual. One, we have payment arrangements on, and we expect that to be brought current. The second one, just a series of misfortunate events for that particular customer.

關於商業投資組合，如果您翻到我們的幻燈片第 8 頁，那裡有我們的資產品質指標，首先，您可以查看我們的不良貸款，這些貸款一直非常穩定，而且實際上本季度略有下降。所以，當你看到不良貸款增加時，其實只是這類貸款遷移到不良貸款群體。我們有 2 筆商業貸款轉為非應計貸款。第一，我們已達成付款安排，我們希望款項能盡快結清。第二個案例，只是那位顧客遭遇的一連串不幸事件。

We have an SBA 75% guarantee, real estate based. So really nothing that we're losing sleep over. Commercial non-accruals, I think we have 6 or 7 customers, roughly $11 million. So very modest number for our portfolio size.

我們有美國小型企業管理局 (SBA) 提供的 75% 擔保，以房地產為基礎。所以真的沒什麼值得我們為此失眠的事。商業非應計項目，我認為我們有 6 或 7 個客戶，大約 1100 萬美元。對於我們投資組合的規模而言，這個數字非常小。

Okay. Great. Just real quick follow-up on that question. From our transaction in the third quarter, what we consider the highest risk portfolio we have was indirect auto, that consistently was $2 out of every $3 of our charge-offs. And also as we go into a period where we may see more stress on the consumer side, exiting that portfolio, I think this really truly enhance our overall credit profile and will keep us in the ranges that we historically performed.

好的。偉大的。關於那個問題，我再快速補充一下。從我們第三季的交易來看，我們認為風險最高的投資組合是間接汽車保險，它始終占我們沖銷金額的 2/3。而且，隨著我們進入一段消費者方面可能面臨更大壓力的時期，退出該投資組合，我認為這確實能真正提升我們的整體信用狀況，並將使我們保持在以往的業績水平。

Got it. Okay. And then with the improvement of the profile, as we think about the provision in the coming quarters and kind of growth, I mean, is it fair to kind of assume that maybe the provision will kind of be more like the average of the first 2 quarters of this year? Or should we expect it to be a little bit lighter just given the removal of those indirect auto loans?

知道了。好的。隨著財務狀況的改善，當我們考慮未來幾季的撥備和成長情況時，我的意思是，是否可以合理地假設撥備將更接近今年前兩個季度的平均值？或者，考慮到取消了間接汽車貸款，我們是否應該預期債務會稍微減輕一些？

Yes. So in regards to the provision, as you see, we did have a release this quarter that was predominantly related to the indirect portfolio as well as just the overall calibration of our loss rate because of that. And so we pulled out roughly $200 million in indirect loans, which dropped the -- reduced the current allocation requirement. And then the long-term loss rate for the portfolio also goes down. And so I would expect that it's going to be more similar to an average, like you said, in the first and second quarter, but it's going to be reflective of predominantly just growth rate and credit trends and charge-offs.

是的。因此，關於撥備，正如你所看到的，我們本季發布了一項主要與間接投資組合相關的公告，以及因此對我們的損失率進行的整體校準。因此，我們撤回了約 2 億美元的間接貸款，這降低了目前的撥款要求。這樣一來，該投資組合的長期虧損率也會下降。因此，我預計第一季和第二季的數據會更接近平均值，就像你所說的那樣，但這主要反映的是成長率、信貸趨勢和核銷情況。

Got it. Okay. Great. And then I guess just lastly, I think it was mentioned -- I think John mentioned that you guys had about $0.3 million of a gain related to the syndicated sale of equipment finance. Can you just talk a little bit about that strategy and kind of where you see that progressing over the next couple of quarters?

知道了。好的。偉大的。最後，我想還有一點，約翰提到過，你們在設備融資的聯合銷售中獲得了大約 30 萬美元的收益。您能否簡單談談這項策略，以及您認為這項策略在未來幾季會如何發展？

Sure. This quarter was really our first quarter in piloting that. It's gone extremely well. We've established relationships with 8 to 10 purchasers and with kind of identifying and formalizing the purchase agreements and identifying their credit box. For us, it's not going to be a significant portion of our business, but it is an opportunity for us to manage our outstandings and fee income and just gives us more flexibility, again, with our balance sheet strategies.

當然。本季是我們真正開始試行這項措施的第一個季度。一切進展得非常順利。我們已經與 8 到 10 位買家建立了聯繫，並正在確定和正式簽署購買協議，以及確定他們的信用狀況。對我們來說，這不會是我們業務的很大一部分，但這為我們管理未償款項和費用收入提供了一個機會，也讓我們在資產負債表策略方面擁有更大的靈活性。

[indiscernible], I don't think it's going to be significant. I think this year, so far, we've done $10 million. As we move forward to next year, it might be $20 million, $30 million at most, maybe more.

[聽不清楚]，我覺得這不會有什麼大不了的。我認為今年到目前為止，我們已經完成了 1000 萬美元。展望明年，這個數字可能達到 2,000 萬美元，最多 3,000 萬美元，甚至更多。

Brian Martin, Janney.

布萊恩馬丁，詹尼。

I just wanted to -- one of my questions was just asked there, but the -- just on the loan growth outlook, can you just talk a little bit about just the loan growth outlook for maybe more 2026 and just kind of where you expect the growth to come from? And then just are there plans to add some additional staff? Are you good with the talent you've got in place right now? Or just kind of -- I know you've talked a little bit about M&A, just kind of more on the organic side. Do you really -- do you need to add people to kind of pick up the growth rate?

我只是想問—我剛剛問了一個問題，關於貸款成長前景，您能否談談2026年以後的貸款成長前景，以及您預計成長將來自哪裡？那麼，公司是否有計畫增加一些員工？你對目前擁有的人才感到滿意嗎？或者只是——我知道你之前談到過併購，但更多的是專注於有機成長方面。真的——真的需要增加人手來提高成長率嗎？

Or do you have the staff now and there's not really plans to do that?

或者說，你們現在已經有了人手，但並沒有真正打算這樣做？

Yes. It's Thomas. Thanks for the question. I think if you look through this year, our growth rate was very solid in the core franchise. If you take out the indirect auto, our commercial growth rate was probably in the low double digits number on a consistent basis.

是的。是托馬斯。謝謝你的提問。我認為，縱觀今年，我們核心業務的成長率非常穩健。如果剔除間接汽車業務，我們的商業成長率可能一直保持在兩位數的低點。

As we move into '26, this will be the main part of our growth rate. And as John highlighted in his comments, we're anticipating that to be in the mid-single-digit level. The main difference is that Horizon isn't having an opportunity finding options to lend. We're just being very disciplined in our credit profile and also our margin management.

進入2026年，這將是我們成長率的主要部分。正如約翰在他的評論中所強調的那樣，我們預計這一數字將處於個位數中段水平。主要區別在於 Horizo​​​​n 沒有機會找到貸款選擇。我們在信貸狀況和利潤率管理方面都非常自律。

So from a need to add additional -- significant additional headcount, we don't see that in the marketplace. We've entrenched ourselves in the growth markets and also of our core markets and are doing very well. We'll just be very selective on a go-forward basis, but making sure that we still continue to grow, but grow in a very smart and profitable way and make sure we hold our credit profile. So very confident in our ability for '26. This isn't a need for us to do a hockey stick on growth.

因此，從增加大量額外員工的需求來看，我們在市場上並沒有看到這樣的需求。我們已在成長型市場和核心市場站穩腳跟，並且做得非常好。今後我們會非常謹慎地選擇投資對象，確保我們繼續發展，但要以非常明智和盈利的方式發展，並確保我們保持良好的信用記錄。我們對2026年的能力非常有信心。這並不意味著我們需要實現爆發式成長。

It's more for us to be just measured in the approach and continue what we do best and be part of our local communities.

對我們來說，更重要的是採取穩健的方式，繼續做好我們最擅長的事情，並成為當地社區的一份子。

Got you. No, that's helpful. And in terms of the -- just the full quarter impact, I mean, getting to the ROA level, kind of that 1.60 type of level, I mean is that something you can achieve with kind of the full quarter impact we should start to see that in fourth quarter here? Or is that -- I guess, is that maybe a first quarter type of event kind of getting to that run rate on the ROA target?

抓到你了。不，這很有幫助。至於整個季度的影響，我的意思是，要達到 ROA 水平，例如 1.60 左右的水平，這是否可以透過整個季度的影響來實現？我們應該會在第四季開始看到這種情況嗎？或者——我猜，這可能是第一季發生的某種事件，目的是達到 ROA 目標的運作率？

This is John. Thanks for the question. I think if you kind of work your way through the guidance we gave specific to Q4, I think you'll find a result that's approximating the numbers you quoted or what we had quoted in the pro formas with the announcement of the balance sheet transactions. And then it's incumbent upon us, which we think will be the case to make sure that, that's durable and sustainable and view that to be the case as we look at 2026 at this point, too.

這是約翰。謝謝你的提問。我認為，如果你仔細研究我們針對第四季度給出的指導意見，你會發現結果與你引用的數字或我們在宣布資產負債表交易時在預測財務報表中引用的數字非常接近。因此，我們有責任確保這一點，我們認為這種情況將會持續下去，我們認為到 2026 年也是如此。

Got you. And just last one, maybe you mentioned this, I didn't think the capital outlets and just the capital accretion here, I guess, are buybacks part of that equation? I know you talked about M&A and organic loan growth. Just remind us where -- if you already talked about it, I apologize.

抓到你了。最後一個問題，也許您已經提到過了，我之前認為資本出口和資本積累，我想，回購，並不包含在這個等式中吧？我知道你們談到了併購和自然貸款成長。請提醒一下是在哪裡說的話——如果您已經說過，我深表歉意。

No, I appreciate the follow-up question on it. As we look at buybacks here in the near term, we just -- as you know, we just raised capital. We always will keep buybacks as one of the opportunities for us to create shareholder value in the near term, or I wouldn't put that as our first option.

不，我很感謝你提出的後續問題。就近期回購計劃而言，正如您所知，我們剛剛籌集了資金。我們將始終把股票回購作為我們在短期內創造股東價值的機會之一，否則我不會把它當作我們的首選方案。

And ladies and gentlemen, that will conclude today's question-and-answer session. I would like to turn the conference call back over to management for any closing remarks.

女士們、先生們，今天的問答環節到此結束。我想把電話會議交還給管理階層，請他們作總結發言。

Thank you, everyone, for joining us today, and I also appreciate the very thoughtful questions. We appreciate your time and interest in Horizon. And as we look forward to sharing our quarter -- our fourth quarter results, which we will do in January, I hope you have a great week, and thank you very much for your time.

感謝各位今天蒞臨，我也很感謝大家提出的富有見地的問題。感謝您抽出時間關注 Horizo​​​​n。在我們期待與大家分享第四季度業績（將於一月份公佈）之際，我希望您度過美好的一周，非常感謝您抽出時間。

The conference has now concluded. We do thank you for attending today's presentation. You may now disconnect your lines.

會議已經結束。非常感謝您出席今天的報告會。現在您可以斷開線路了。