Heritage Financial Corp (HFWA) 2023 Q1 法說會逐字稿

Hello, everyone. Thank you for attending today's Heritage Financial Corporation Q1 2023 Earnings Call. My name is Sierra, and I will be your moderator today. (Operator Instructions) I would now like to pass the conference over to our host, Jeff Deuel, CEO of Heritage Financial Corporation. Please proceed.

大家好。感謝您參加今天的 Heritage Financial Corporation 2023 年第一季度財報電話會議。我叫 Sierra，今天我將擔任你們的主持人。 （操作員說明）我現在想將會議轉交給我們的主持人，Heritage Financial Corporation 首席執行官 Jeff Deuel。請繼續。

Thank you, Sierra. Welcome, and good morning to everyone who called in and those who may listen later. This is Jeff Deuel, CEO of Heritage Financial; Attending with me are Don Hinson, Chief Financial Officer; Bryan McDonald, President and Chief Operating Officer; and Tony Chalfant, Chief Credit Officer. Our first quarter earnings release [went out] this morning premarket, and hopefully, you've had the opportunity to review it prior to the call. We have also posted an updated first quarter investor presentation on the Investor Relations portion of our corporate website which includes more detail on our deposits, liquidity and credit quality.

謝謝你，塞拉利昂。歡迎所有來電的人和可能稍後會聽的人，早上好。我是 Heritage Financial 的首席執行官 Jeff Deuel；和我一起出席的有首席財務官 Don Hinson； Bryan McDonald，總裁兼首席運營官；首席信貸官 Tony Chalfant。我們的第一季度收益報告已於今天上午上市前發布，希望您有機會在電話會議之前對其進行審查。我們還在公司網站的投資者關係部分發布了最新的第一季度投資者介紹，其中包括有關我們的存款、流動性和信用質量的更多詳細信息。

We will reference this presentation during the call. Please refer to forward-looking statements in the press release. We're very pleased to report another solid quarter. In spite of the unfortunate industry turmoil we all faced in March, we were happy to see the destabilizing factors around us calm down quickly with the majority of deposit movement in tied to normal deposit flows. As you know, deposit pricing started to get more competitive late in the third quarter of '22 and that theme continued through Q4 '22 and into Q1 '23.

我們將在通話期間參考此演示文稿。請參閱新聞稿中的前瞻性陳述。我們很高興地報告另一個穩定的季度。儘管 3 月份我們都面臨著不幸的行業動盪，但我們很高興看到我們周圍的不穩定因素迅速平息，大部分存款流動與正常存款流動相關。如您所知，存款定價在 22 年第三季度末開始變得更具競爭力，並且該主題一直持續到 22 年第四季度和 23 年第一季度。

We continue to focus on exception pricing for relationships with good success. The majority of deposit movement in Q1 was tied to normal flows, including capital purchases with a lesser portion tied to alternative investments and general FDIC insurance-related concerns, which, in most cases, resulted in retention of deposits, but at a higher cost. We expect deposits to stabilize as the year progresses aided by our $150 million deposit pipeline. We reported solid organic loan growth of 7.7% annualized, and we're pleased with the positive trend we have seen in the number of new commitments and new loan closings from our existing production teams and the newer members of that team. We continue to manage expenses carefully, although we also continue to experience the impacts of inflation.

我們繼續關注成功關係的例外定價。第一季度的大部分存款變動與正常流動有關，包括資本購買，其中一小部分與另類投資和一般 FDIC 保險相關的擔憂有關，在大多數情況下，這會導致存款保留，但成本更高。在我們 1.5 億美元的存款管道的幫助下，我們預計存款會隨著時間的推移而穩定下來。我們報告有機貸款年增長率為 7.7%，我們對現有生產團隊和該團隊新成員的新承諾和新貸款關閉數量的積極趨勢感到滿意。儘管我們也繼續受到通貨膨脹的影響，但我們繼續謹慎地管理開支。

Notably, our long-standing focus on credit quality and actively managing our loan portfolio continues to play out well for us. Staying focused on our conservative risk profile has enabled us to continue to report improving credit trends and provides a good foundation facing into a potential recession.

值得注意的是，我們長期以來對信貸質量的關注和積極管理我們的貸款組合繼續為我們發揮良好的作用。專注於我們保守的風險狀況使我們能夠繼續報告改善的信貸趨勢，並為應對潛在的衰退奠定了良好的基礎。

We'll now move to Don Hinson, who will take a few minutes to cover our financial results.

我們現在將轉到 Don Hinson，他將花幾分鐘時間介紹我們的財務結果。

Thank you, Jeff. As Jeff mentioned, overall financial performance was positive in Q1 and I'll be reviewing some of the main drivers of our performance. As I walk through our financial results, unless otherwise noted, all of the prior period comparisons will be with the fourth quarter of 2022. Starting with net interest income, we experienced a decrease of $3.3 million or 5.2% in Q1 due mostly to an increase in interest expense. This resulted from an increase in our cost of interest-bearing deposits as well as an increased use of short-term borrowings during the quarter. This was the main driver for the 7 basis point decrease in our net interest margin for Q1.

謝謝你，傑夫。正如 Jeff 所提到的，第一季度的整體財務業績是積極的，我將回顧我們業績的一些主要驅動因素。在我瀏覽我們的財務業績時，除非另有說明，否則所有前期比較都將與 2022 年第四季度進行。從淨利息收入開始，我們在第一季度減少了 330 萬美元或 5.2%，這主要是由於增加在利息支出中。這是由於本季度我們的計息存款成本增加以及短期借款使用增加所致。這是我們第一季度淨息差下降 7 個基點的主要驅動因素。

We expect to continue to experience downward pressure on NIM in Q2. As mentioned earlier, we started 2023 with solid loan growth in Q1 of $77 million or 7.7% annualized. In addition, yields on the loan portfolio were 5.07% in Q1, which was 21 basis points higher than Q4. Bryan McDonald will have an update on loan production and yields in a few minutes.

我們預計二季度 NIM 將繼續面臨下行壓力。如前所述，我們從 2023 年開始在第一季度實現了 7700 萬美元或 7.7% 的穩健貸款增長。此外，第一季度貸款組合的收益率為 5.07%，比第四季度高 21 個基點。布萊恩·麥克唐納 (Bryan McDonald) 將在幾分鐘內獲得有關貸款生產和收益率的最新信息。

Our cost of interest-bearing deposits increased 21 -- 24 basis points to 0.49% for Q1. We continue to experience market pressure related to deposit rates However, we are strategically increasing our deposit rates by product and working individually with our customers to maintain relationships. As a result of the current rate environment, we expect to continue to experience an increase in the cost of our core deposits. Overall, we experienced a decline in total deposit balances in Q1 of 2.3%. The decline occurred throughout the quarter.

第一季度，我們的計息存款成本增加了 21 - 24 個基點，達到 0.49%。我們繼續承受與存款利率相關的市場壓力但是，我們正在戰略性地按產品提高我們的存款利率，並與我們的客戶單獨合作以維持關係。由於當前的利率環境，我們預計核心存款的成本將繼續增加。總體而言，我們在第一季度的總存款餘額下降了 2.3%。下降發生在整個季度。

We closely monitored our deposit balances during the first quarter, including the days subsequent to the bank failures in mid-March. As Jeff mentioned, our large deposit outflows in Q1 were primarily due to either capital purchases or normal outflows. We did not see significant runoff the recent bank failures. Historically, the first quarter is also a quarter of minimal to no deposit growth. Bryan will also discuss our deposit pipeline later in the presentation.

我們密切關注第一季度的存款餘額，包括 3 月中旬銀行倒閉後的幾天。正如 Jeff 提到的，我們在第一季度的大量存款流出主要是由於資本購買或正常流出。我們沒有看到最近銀行倒閉的重大徑流。從歷史上看，第一季度也是存款增長極小甚至沒有增長的一個季度。 Bryan 還將在稍後的演示中討論我們的存款管道。

Our insured deposits were 65% of total deposits at the end of Q1. Also for customers seeking additional FDIC insurance, we offer product -- deposit products, which have full FDIC insurance coverage. On balance sheet deposit totals for these accounts were $162 million at the end of Q1.

第一季度末，我們的受保存款佔存款總額的 65%。此外，對於尋求額外 FDIC 保險的客戶，我們提供產品——存款產品，這些產品具有完整的 FDIC 保險範圍。第一季度末，這些賬戶的資產負債表存款總額為 1.62 億美元。

In order to supplement core deposits in Q1, we added $52 million in broker deposits and $100 million in higher costing floating rate public funds this quarter, which contributed to the increased cost deposits. In addition, we added $383 million of overnight FHLB borrowings in Q1. The decision to add these noncore deposits and borrowings was made to enhance our liquidity position and when offset by the earnings on overnight Federal Reserve Bank balances did not significantly impact our net interest income.

為了補充第一季度的核心存款，我們在本季度增加了 5200 萬美元的經紀人存款和 1 億美元的成本較高的浮動利率公募基金，這有助於增加成本存款。此外，我們在第一季度增加了 3.83 億美元的 FHLB 隔夜借款。添加這些非核心存款和借款的決定是為了增強我們的流動性頭寸，當被隔夜聯邦儲備銀行餘額的收益所抵消時，不會對我們的淨利息收入產生重大影響。

We are also set up to participate in the bank term funding program offered by the Federal Reserve Bank. However, we have not yet utilized this facility. You can refer to Page 36 of the investor presentation for more specifics on our borrowings and liquidity position. All of our regulatory capital ratios remain well above well-capitalized thresholds.

我們還準備參與聯邦儲備銀行提供的銀行定期融資計劃。然而，我們還沒有使用這個設施。您可以參閱投資者介紹的第 36 頁，了解有關我們的借款和流動性狀況的更多細節。我們所有的監管資本比率都遠高於資本充足的門檻。

Our TCE ratio is at 8.3%, up from 8.2% at the end of Q4. In addition, with a loan-to-deposit ratio of 71%, we have plenty of liquidity to continue to grow our loan portfolio. We saw improvement this quarter in the market value of our investments from the previous quarter. Our unrealized loss on available for sale securities declined by 17% and which also had a positive impact on equity through the change in AOCI. The credit quality of our investment portfolio is strong with 89% of available for sale and all of held-to-maturity securities guaranteed by the U.S. government or government agencies.

我們的 TCE 比率為 8.3%，高於第四季度末的 8.2%。此外，憑藉 71% 的貸存比率，我們擁有充裕的流動資金來繼續擴大我們的貸款組合。本季度我們的投資市值較上一季度有所改善。我們的可供出售證券的未實現虧損下降了 17%，這也通過 AOCI 的變化對權益產生了積極影響。我們投資組合的信用質量很高，89% 的可供出售證券和所有持有至到期的證券均由美國政府或政府機構擔保。

The duration of our investment portfolio is under 5 years and new purchases over the last 2 quarters were under 3 years. We have provided additional detail on our -- in our investment presentation regarding our investment portfolios on Pages 29 through 31. Noninterest income increased $1.7 million primarily due to a onetime gain on sale of Class B Visa stock, which we have held since 2008.

我們投資組合的期限不到 5 年，過去兩個季度的新購買不到 3 年。我們在第 29 頁至第 31 頁關於我們投資組合的投資介紹中提供了更多詳細信息。非利息收入增加了 170 萬美元，這主要是由於出售我們自 2008 年以來持有的 B 類 Visa 股票的一次性收益。

Noninterest expense increased $1.2 million to $41.6 million in Q1. This increase was due to an increase in benefit costs and higher [payable] taxes paid during the first quarter of each year. Looking ahead, due to April 1 [offer] increases and additional expenses related to our new [Boise] production office, we expect noninterest expense to be in the low [$42 million] range for Q2.

第一季度的非利息支出增加了 120 萬美元，達到 4160 萬美元。這一增長是由於福利成本的增加和每年第一季度支付的[應付]稅款增加所致。展望未來，由於 4 月 1 日 [報價] 增加以及與我們新的 [博伊西] 生產辦公室相關的額外費用，我們預計第二季度的非利息費用將處於較低的 [4200 萬美元] 範圍內。

And finally, moving on to the allowance. Even though we continue to show strong credit quality metrics, we recognized a provision for credit losses of $1.8 million during Q1 due mostly to increases in loan balances and unfunded commitments as well as a change in mix of loans in the portfolio, which impacted the allowance calculation.

最後，繼續津貼。儘管我們繼續表現出強勁的信貸質量指標，但我們在第一季度確認了 180 萬美元的信貸損失準備金，這主要是由於貸款餘額和無資金承諾的增加以及投資組合中貸款組合的變化，這影響了準備金計算。

I will now pass the call to Tony, who will have an update on these credit quality metrics.

我現在將電話轉給托尼，他將了解這些信用質量指標的最新情況。

Thank you, Don. I'm pleased to report that credit quality was stable in the first quarter when compared to the strong results that we reported at the end of 2022. As of March 31, nonaccrual loans totaled $4.8 million and we do not hold any OREO. This represents 0.12% of total loans and 0.07% of total assets. Nonaccrual loans declined by $1.1 million during the quarter and are now down by $11.7 million or 71% from the first quarter of 2022.

謝謝你，唐。我很高興地報告，與我們在 2022 年底報告的強勁業績相比，第一季度的信貸質量穩定。截至 3 月 31 日，非應計貸款總額為 480 萬美元，我們沒有持有任何奧利奧。這佔總貸款的 0.12% 和總資產的 0.07%。本季度非應計貸款減少了 110 萬美元，現在比 2022 年第一季度減少了 1170 萬美元或 71%。

We moved 3 C&I relationships to nonaccrual in the first quarter in the aggregate amount of $468,000,-- this was more than offset by $1.6 million in loans that were either paid in full or made payments that were applied to principal. Our delinquent loans, which we define as those over 30 days past due and still accruing is stable from year-end at $8.4 million or 0.20% of total loans.

我們在第一季度將 3 個 C&I 關係轉為非應計項目，總額為 468,000 美元——這被 160 萬美元的貸款所抵消，這些貸款要么已全額支付，要么已支付給本金。我們的拖欠貸款定義為逾期超過 30 天但仍在累積的貸款，從年底開始穩定在 840 萬美元，佔貸款總額的 0.20%。

Page 24 of the investor presentation highlights the positive trends in our level of nonperforming assets. Criticized loans, those risk-rated special mention in substandard totaled just under $146 million at the end of the quarter. This is a modest increase of $10.4 million or approximately 8% since year-end 2022. This still compares very favorably to the first quarter of 2022, where criticized loans totaled $174.6 million. Notably, over the same 12-month period, loans risk-rated substandard have declined by $62 million or 56%. While criticized loans in the hotel portion of the portfolio are still high, at just under $30 million, we see continuing improvement.

投資者介紹的第 24 頁強調了我們不良資產水平的積極趨勢。截至本季度末，受批評的貸款，那些風險評級特別關注的次級貸款總額略低於 1.46 億美元。自 2022 年底以來，這一數字小幅增加了 1040 萬美元，增幅約為 8%。這與 2022 年第一季度的受批評貸款總額 1.746 億美元相比仍然非常有利。值得注意的是，在同一 12 個月期間，風險評級為次級的貸款減少了 6200 萬美元或 56%。雖然投資組合中酒店部分的受批評貸款仍然很高，略低於 3000 萬美元，但我們看到持續改善。

Two loans represent $24.6 million of this total and both are now rated special mention and show improving trends. For comparative purposes, I'll highlight that criticized hotel loans totaled just over $67 million at the end of 2021. We continue to closely watch our portfolio of office loans. We have yet to see any material deterioration in the credit quality of this portfolio.

兩筆貸款佔總額中的 2460 萬美元，現在都被評為特別關注並顯示出改善趨勢。出於比較目的，我要強調指出，到 2021 年底，受到批評的酒店貸款總額剛剛超過 6700 萬美元。我們將繼續密切關注我們的辦公室貸款組合。我們尚未看到該投資組合的信用質量有任何實質性惡化。

At quarter end, criticized office loans totaled approximately $22 million or just under 4% of our total portfolio of owner and nonowner-occupied office loans. This is very close to the level that we reported at the end of 2022. At $582 million, this is the largest category of CRE loans in the bank. Some key characteristics of this portfolio include [48%] of the portfolio is owner-occupied properties. These have a lower risk profile as there's less tenant rollover risk, and we typically have the guarantees from the company occupying the space as well as the owners of that company. We have very little exposure in the core downtown markets within our footprint.

在本季度末，受到批評的辦公室貸款總額約為 2200 萬美元，占我們自住和非自住辦公室貸款組合總額的不到 4%。這非常接近我們在 2022 年底報告的水平。5.82 億美元，這是銀行中最大的 CRE 貸款類別。該投資組合的一些關鍵特徵包括 [48%] 的投資組合是自住物業。這些具有較低的風險狀況，因為租戶的滾動風險較小，而且我們通常會從占用該空間的公司以及該公司的所有者那裡獲得保證。在我們的足跡範圍內，我們在核心市中心市場的曝光率非常低。

Outstanding office loans in downtown Seattle, Portland and Tacoma totaled just over $50 million with 29 loans for an average loan size of $1.7 million.

西雅圖市中心、波特蘭和塔科馬市中心的未償辦公貸款總額剛剛超過 5000 萬美元，其中有 29 筆貸款，平均貸款規模為 170 萬美元。

On Page 23 of the investor presentation, we added a page showing our commercial real estate concentration levels. The bank has a long history of robust management of loan portfolio concentrations. You'll see that we maintain our CRE concentration levels well below the regulatory threshold and 259% of capital for total CRE and 44% for the subset of construction, land development and land loans.

在投資者介紹的第 23 頁，我們添加了一個顯示我們的商業房地產集中度的頁面。該銀行長期以來對貸款組合集中度進行穩健管理。你會看到我們的 CRE 集中度水平遠低於監管門檻，CRE 總資本佔資本的 259%，建築、土地開發和土地貸款子集占資本的 44%。

During the first quarter, we experienced charge-offs of $314,000 split evenly between our commercial and consumer portfolios. They were partially offset by recoveries of $84,000 leading to net charge-offs of $230,000 for the quarter that represents 0.02% of our average total loans. This compares to a net recovery of $208,000 for the fourth quarter of 2022 and a net recovery of $494,000 in the first quarter of 2022. The loss for the quarter is relatively small and compares favorably to historical norms. By comparison, our average annual net charge-offs for the 3-year period 2018 through 2020 was approximately $2.9 million or about $700,000 a quarter.

在第一季度，我們經歷了 314,000 美元的沖銷，平均分配給我們的商業和消費者產品組合。它們被 84,000 美元的回收部分抵消，導致本季度淨註銷 230,000 美元，占我們平均貸款總額的 0.02%。相比之下，2022 年第四季度淨復甦 208,000 美元，2022 年第一季度淨復甦 494,000 美元。該季度的虧損相對較小，好於歷史常態。相比之下，我們在 2018 年至 2020 年的 3 年期間平均年度淨沖銷約為 290 萬美元或每季度約 700,000 美元。

While we recognize that 2023 may represent a more challenging economic environment in 2022, we saw very little deterioration in our credit quality during the first quarter. With our disciplined underwriting and diversified loan portfolio, we remain well-positioned to deal with the economic challenges we may encounter in the coming quarters.

雖然我們認識到 2023 年可能代表 2022 年更具挑戰性的經濟環境，但我們發現第一季度的信貸質量幾乎沒有惡化。憑藉我們嚴謹的承銷和多元化的貸款組合，我們仍然處於有利地位，可以應對未來幾個季度可能遇到的經濟挑戰。

I'll now turn the call over to Brian for an update on production in Q1.

我現在將電話轉給 Brian，了解第一季度生產的最新情況。

Thanks, Tony. I'm going to provide detail on our first quarter projection results, starting with our commercial lending group. For the quarter, our commercial teams closed $228 million in new loan commitments, down from $329 million last quarter and roughly equivalent to the $222 million closed in the first quarter of 2022. Please refer to Page 19 in the first quarter investor presentation for additional detail on new originated loans over the past 5 quarters. The commercial loan pipeline ended the first quarter at $587 million, up from $536 million last quarter and up from $527 million at the end of the first quarter of 2022. New commercial teams hired during 2022 have been adding to our loan pipeline and the Boise team is just starting to ramp up with the majority of the sales team not joining until later in the first quarter and into April. We currently have a team of 8 with 2 additional bankers scheduled to start before the end of the month.

謝謝，托尼。我將提供有關我們第一季度預測結果的詳細信息，首先是我們的商業貸款集團。本季度，我們的商業團隊完成了 2.28 億美元的新貸款承諾，低於上一季度的 3.29 億美元，大致相當於 2022 年第一季度完成的 2.22 億美元。有關更多詳細信息，請參閱第一季度投資者介紹中的第 19 頁過去 5 個季度的新貸款。第一季度結束時，商業貸款渠道為 5.87 億美元，高於上一季度的 5.36 億美元和 2022 年第一季度末的 5.27 億美元。2022 年聘用的新商業團隊一直在增加我們的貸款渠道和博伊西團隊才剛剛開始增加，大多數銷售團隊直到第一季度晚些時候和四月份才加入。我們目前有一個 8 人的團隊，另外 2 名銀行家計劃在月底前開始工作。

Our Boise office is fully staffed at this point, and we are moving into our permanent space on May 22. As Jeff and Don mentioned, loan growth was $77 million for the quarter, or a 7.7% annualized rate. Although loan production and fundings on production during the quarter were both down versus 2022 averages we benefited from lower prepaid levels and increased balances on construction loans.

我們的博伊西辦公室此時已配備齊全，我們將於 5 月 22 日搬進我們的永久辦公室。正如 Jeff 和 Don 提到的那樣，本季度的貸款增長為 7700 萬美元，年化增長率為 7.7%。儘管本季度的貸款產量和生產資金均低於 2022 年的平均水平，但我們受益於較低的預付水平和建築貸款餘額的增加。

Please see Slides 20 and 21 of the investor deck for full detail on the change in loans during the quarter. Considering current economic conditions, market conditions, trends in our portfolio and customer base and the quarter end loan pipeline plus the fact our new Boise team is just ramping up its production. We anticipate a similar level of loan growth for the next couple of quarters. Balances associated with new deposit accounts opened during the quarter totaled $114 million, and the deposit pipeline ended the quarter at over $150 million. New deposit teams hired during 2022 and our existing deposit officers have been producing strong results as reflected on Slide 10 of the investor presentation. Deposit balances in Oregon and the Portland MSA increased at a 28% annualized rate during the first quarter, which is particularly significant given we saw a deposit balance decline in other regions.

有關本季度貸款變化的完整詳細信息，請參閱投資者平台的幻燈片 20 和 21。考慮到當前的經濟狀況、市場狀況、我們的投資組合和客戶群的趨勢以及季末貸款渠道，再加上我們新的博伊西團隊剛剛提高產量這一事實。我們預計未來幾個季度的貸款增長將達到類似水平。本季度開設的新存款賬戶餘額總計 1.14 億美元，本季度末的存款渠道超過 1.5 億美元。 2022 年聘用的新存款團隊和我們現有的存款管理人員一直在產生強勁的業績，如投資者介紹的幻燈片 10 所示。俄勒岡州和波特蘭 MSA 的存款餘額在第一季度以年化 28% 的速度增長，鑑於我們看到其他地區的存款餘額下降，這一點尤為顯著。

Moving to interest rates. Our average first quarter interest rate for new commercial loans was 5.97%, which is 25 basis points higher than the 5.72% average for last quarter. In addition, the average first quarter rate for all new loans was 6.01%, up 50 basis points from 5.51% last quarter. Although the marketplace continues to be competitive and the fixed rate indexes have been volatile, we're seeing loan spreads improve, which is translating into higher quarter interest rates on new loans. The mortgage department closed $17 million of new loans in the first quarter of 2023 compared to $18 million closed in the fourth quarter of 2022 and $37 million in the first quarter of 2022.

轉向利率。我們新商業貸款的第一季度平均利率為 5.97%，比上一季度的平均利率 5.72% 高 25 個基點。此外，第一季度所有新增貸款的平均利率為 6.01%，較上一季度的 5.51% 上升 50 個基點。儘管市場繼續競爭激烈且固定利率指數一直波動，但我們看到貸款利差有所改善，這轉化為新貸款的更高季度利率。抵押貸款部門在 2023 年第一季度關閉了 1700 萬美元的新貸款，而 2022 年第四季度關閉了 1800 萬美元，2022 年第一季度關閉了 3700 萬美元。

The mortgage pipeline ended the quarter at $25 million versus $8 million at year-end '22 and $27 million at the end of the first quarter of 2022. With mortgage rates remaining at higher levels, we anticipate volumes will continue at the relatively low levels we saw in the second half of '22.

抵押貸款渠道在本季度結束時為 2500 萬美元，而 22 年底為 800 萬美元，2022 年第一季度末為 2700 萬美元。由於抵押貸款利率保持在較高水平，我們預計交易量將繼續保持在相對較低的水平在 22 年下半年看到。

I'll now turn the call back to Jeff.

我現在將電話轉回給傑夫。

Thank you, Bryan. As I mentioned earlier, we're pleased with our performance in the first quarter. While the general dialogue around the recent liquidity crisis is still a broader topic of discussion we're confident our long-established granular deposit franchise will continue to be an area of strength for us, and we have ample liquidity sources should we need them. Our relatively low loan-to-deposit ratio positions us well to continue our -- to support our existing customers as well as pursuing new high-quality relationships.

謝謝你，布萊恩。正如我之前提到的，我們對第一季度的表現感到滿意。雖然圍繞近期流動性危機的一般性對話仍然是一個更廣泛的討論話題，但我們相信我們長期建立的顆粒存款專營權將繼續成為我們的優勢領域，並且如果我們需要的話，我們擁有充足的流動性來源。我們相對較低的貸存比使我們能夠很好地繼續我們的——支持我們現有的客戶以及尋求新的高質量關係。

We will continue to benefit from our historically conservative approach to credit and our strong capital position as we face the possibility of a recession, and we operate in a footprint that historically been economically vibrant. We will continue to focus on expense management, and we're making good progress with our in-house tech build with version 1 wrapping up in 2023, which will position us well to do more with the same people as we continue to grow.

當我們面臨經濟衰退的可能性時，我們將繼續受益於我們歷來保守的信貸方式和我們強大的資本狀況，並且我們的運營足跡歷來在經濟上充滿活力。我們將繼續專注於費用管理，我們在內部技術構建方面取得了良好進展，第 1 版將於 2023 年結束，這將使我們能夠在繼續發展的同時與同樣的人一起做更多的事情。

Overall, we believe, we are positioned to navigate the challenging economic conditions and to take advantage of any potential dislocation in our markets that may occur. That is the conclusion of our prepared comments, Sierra. So we're ready to open up the call to the -- to any questions that callers may have for us.

總的來說，我們相信，我們有能力應對充滿挑戰的經濟形勢，並利用我們市場可能發生的任何潛在混亂。這是我們準備好的評論的結論，Sierra。因此，我們已準備好對來電者可能向我們提出的任何問題打開電話。

(Operator Instructions) Our first question comes from Jeff Rulis with D.A. Davidson.

（操作員說明）我們的第一個問題來自 D.A. 的 Jeff Rulis。戴維森。

Just a question on -- just on the deposit side. Don and Jeff, you alluded to the ongoing sort of challenges there and expect rate pressure to continue but on a relative sense, I guess, it didn't sound like balances were all that impacted by the March news, more so just the seasonal trends in addition to rate pressure. But just trying to get a sense for if you think that those rate requests have slowed to a degree? Do you think you're kind of what you've seen so far in April? I mean, Don, you mentioned additional pressure expected. But do you feel like you're getting through any of that? And then maybe just comment on balances as well in terms of stabilization quarter-to-date.

只是一個問題——就在存款方面。 Don 和 Jeff，你們提到了那裡持續存在的挑戰，並預計利率壓力將繼續存在，但我想，相對而言，3 月份的消息似乎並沒有影響餘額，更多的只是季節性趨勢除了利率壓力。但是，如果您認為這些利率請求已經放緩到一定程度，只是想了解一下？你覺得你是你在四月到目前為止所看到的那種人嗎？我的意思是，唐，你提到了預期的額外壓力。但是你覺得你正在經歷這些嗎？然後也許只是評論平衡以及穩定季度至今。

Yes. I can start, Don, and maybe you want to join in, Jeff. I think maybe we're making it sound completely benign. I'm not sure that, that's exactly what we experienced. I think like everybody else, mid-March, we were pretty anxious about the environment around us. And I think that what we did see was a lot of conversations going on between our bankers and our customers, helping them understand the circumstances around us and what was going on with the banks that weren't doing very well. And I think that dialogue that occurred was quite frankly, much more meaningful than I thought it would be given the circumstances. It reminded me how closely tied to our customer base, our bankers are and their trusted advisers, and I think that did us a lot of good during that period of time. I think what did happen and maybe something that we benefited from in the fourth quarter, was it up until that point.

是的。我可以開始了，唐，也許你想加入，傑夫。我想也許我們讓它聽起來完全無害。我不確定，這正是我們所經歷的。我想和其他人一樣，在 3 月中旬，我們對周圍的環境感到非常焦慮。而且我認為我們確實看到的是我們的銀行家和我們的客戶之間進行的大量對話，幫助他們了解我們周圍的情況以及銀行表現不佳的情況。而且我認為發生的對話非常坦率，比我認為在這種情況下會更有意義。它提醒我與我們的客戶群、我們的銀行家和他們信任的顧問之間的聯繫是多麼緊密，我認為那段時間對我們有很大幫助。我認為確實發生了什麼，也許我們在第四季度從中受益，直到那時為止。

I don't think everybody's attention was really focused on rates in general as they relate it to deposits. And I think the conversations went well in terms of heritage is fine. But I think step 2 was -- and let's talk about rates. So I think rates did move maybe faster in a shorter period of time than we had anticipated given the circumstances. We -- as the month of March went on, and as Don said, we watched daily, hourly for many days, if things started to calm down what we normally see in this time of year is deposit flows tend to trend down anyways because there's a lot of tax activity for other -- there's other reasons too, but that's a big one. That's I think we're seeing stabilization or we saw stabilization towards the end of March, and now we're starting to see a little bit of activity that we believe is tied to tax payments.

我不認為每個人的注意力都真正集中在與存款相關的一般利率上。而且我認為就遺產而言，對話進行得很順利。但我認為第 2 步是——讓我們談談利率。因此，我認為在這種情況下，利率在更短時間內的變化可能比我們預期的要快。我們——隨著 3 月份的過去，正如 Don 所說，我們每天、每小時都觀察很多天，如果事情開始平靜下來，我們通常在每年的這個時候看到的是存款流量無論如何都會呈下降趨勢，因為有其他的很多稅收活動——還有其他原因，但這是一個很大的原因。那就是我認為我們正在看到穩定，或者我們在 3 月底看到穩定，現在我們開始看到一些我們認為與納稅有關的活動。

But none of it's outsized. And I think that, as we said in the script, we think that things will start to stabilize as we get further into the end of April, and we think we'll benefit from some of the activity that's going on in the footprint around new relationship development, which I think will help stabilize and also maybe help us grow the deposits through the end of the year, which would be one of our focuses. We have a lot of folks on our team now that are deposit focused. And I think all that energy is going to bear fruit as we get towards the end of the year. Don, maybe you want to comment on rates going forward.

但沒有一個是超大的。而且我認為，正如我們在劇本中所說的那樣，我們認為隨著 4 月底的進一步推進，情況將開始趨於穩定，我們認為我們將從圍繞新的足跡開展的一些活動中受益關係發展，我認為這將有助於穩定並可能幫助我們在年底前增加存款，這將是我們的重點之一。現在我們團隊中有很多人都專注於存款。而且我認為，隨著我們臨近年底，所有這些能量都會結出碩果。唐，也許你想對未來的利率發表評論。

Sure. As far as the rates and sales, the cost of interest-bearing deposits for the quarter was 49 basis points. I just give you an update. For March, it was 64 basis points, and the spot rate is 78 basis points. Now 8 basis points on the 78 basis points is the $100 million of public deposits we brought in at kind of higher rates, which is basically paying Fed funds minus [15]. So it's a little cheaper than borrowings, but it's still kind of a floating rate, higher cost deposits. So just to give you kind of a flavor of kind of what the cost and therefore, for next quarter, right, with a spot rate of 78 basis points, is just going to be higher than the 49 that we experienced in Q1. As far as rate exceptions, I'm going to actually -- Steve, Bryan, Donald can speak to that real quickly. I think he's got a finger on the pulse a little bit more on that than I do.

當然。就利率和銷售額而言，本季度計息存款成本為 49 個基點。我只是給你更新。 3 月份為 64 個基點，即期匯率為 78 個基點。現在 78 個基點上的 8 個基點是我們以某種更高的利率引入的 1 億美元公共存款，這基本上是支付聯邦基金減去 [15]。所以它比借款便宜一點，但它仍然是一種浮動利率，成本較高的存款。所以只是為了給你一種成本的味道，因此，下個季度，即期利率為 78 個基點，將高於我們在第一季度經歷的 49 個基點。至於費率例外，我實際上要 - 史蒂夫、布萊恩、唐納德可以很快地談到這一點。我認為他比我更了解脈搏。

Yes, sure, Don. We are -- I would say the volume has declined a -- a couple of weeks, as Jeff described, all those conversations with the customers did end up leading to a higher level of rate request. I think this is going to be largely dependent on what happens with our competitors, although I would say that these are all excess nonoperating deposits where we're feeling the rate pressure and a lot of those dollars are going to alternative investments outside the banks similar to what we've seen reported by other companies, including our own wealth management area. So that's the primary competition for short-term rates competing with the money market funds that are available out there where customers can get higher rates.

是的，當然，唐。正如傑夫所描述的那樣，我們 - 我會說數量已經下降了 - 幾個星期，與客戶的所有這些對話最終確實導致了更高水平的費率請求。我認為這將在很大程度上取決於我們的競爭對手會發生什麼，儘管我會說這些都是我們感受到利率壓力的過剩非經營存款，其中很多美元將用於類似銀行以外的另類投資我們看到其他公司報告的內容，包括我們自己的財富管理領域。因此，這是短期利率的主要競爭，與客戶可以獲得更高利率的貨幣市場基金競爭。

So I still anticipate some pressure. We're seeing it moderate somewhat, but it's just a little bit early to say that we're not going to have some higher level of activity, at least through the second quarter. As both Don and Jeff mentioned, we're following this really closely, and our teams are following out really closely. And we want to maintain competitive pricing to keep as much of that on balance sheet as that reasonably makes sense to do.

所以我仍然預計會有一些壓力。我們看到它有所緩和，但現在說我們不會有更高水平的活動還為時過早，至少在第二季度是這樣。正如 Don 和 Jeff 所提到的，我們正在密切關注這一點，我們的團隊也在密切關注。我們希望保持有競爭力的定價，以在合理合理的情況下將盡可能多的價格保留在資產負債表上。

Very helpful. And if I would just circle back then to the -- Don, your expectation on margin being down second quarter relative to Q1. There's a thread there that you've built up some broker deposits. You added FHLB. You're addressing some customer requests now. I guess, in your further out, I guess, the balance of '23, any expectations on margin as you digest things that carried forward from Q1 into Q2, but the back half of the year, perhaps you could update us on kind of your rate sensitivity and how you see the margin sort of navigate in the back half, if that's doable?

很有幫助。如果我回過頭來——唐，你對第二季度利潤率的預期相對於第一季度有所下降。那裡有一個線程，您已經建立了一些經紀人存款。您添加了 FHLB。您現在正在處理一些客戶請求。我想，在你更遠的地方，我想，23 年的餘額，當你消化從第一季度結轉到第二季度的事情時對利潤率的任何期望，但在今年下半年，也許你可以向我們更新你的情況速率敏感性以及你如何看待後半部分的邊際導航，如果可行的話？

Well, as I just look at trends, and I think the decline is going to slow down. We didn't -- the overall margin did come down much in Q1. But again, our margin was (inaudible) just to give you some color on that. And therefore, I'm expecting it to fall probably into the somewhere in the [3.60%] somewhere in there probably next quarter. And depending on what happens, right, with rates, it could get down to the [3.50%], though I don't really think it's going to get really -- I would be surprised, I guess, a couple of that. So based off the current rate environment. So -- but it could fall a bit more throughout the year.

好吧，因為我只看趨勢，我認為下降趨勢會放緩。我們沒有——第一季度的整體利潤率確實下降了很多。但同樣，我們的保證金（聽不清）只是為了給你一些顏色。因此，我預計它可能會在下個季度下降到 [3.60%] 的某個地方。根據發生的情況，正確的，利率可能會下降到 [3.50%]，儘管我真的不認為它會真的發生——我想我會感到驚訝，其中有幾個。所以基於當前的利率環境。所以 - 但全年可能會下降更多。

Okay. Don, just so I get you right there, you had not a single-digit margin compression, but if you're pointing to [3.70%] or lower. So we could see sequentially higher margin compression in the second quarter relative to the first quarter?

好的。唐，為了讓我明白你的意思，你沒有一個位數的保證金壓縮，但如果你指向 [3.70%] 或更低。那麼我們可以看到第二季度相對於第一季度的連續更高的利潤率壓縮嗎？

I'm expecting that, yes.

我期待著，是的。

Our next question comes from Andrew Terrell with Stephens.

我們的下一個問題來自 Andrew Terrell 和 Stephens。

I wanted to start on the deposit side. I heard your commentary around the deposit pipeline. I think you said it stands around $150 million or so. I'd be curious here how much of that is noninterest-bearing. And then how does the aggregate level of that pipeline in the $150 million compared to the deposit pipeline coming into the year? Just trying to get a sense of the...

我想從存款方面開始。我聽到了您對存款管道的評論。我想你說過它大約是 1.5 億美元左右。我很好奇其中有多少是免息的。那麼與今年的存款管道相比，該管道的總水平如何達到 1.5 億美元？只是想了解...

Bryan, you may be closer to the details. Can you take that one?

布萊恩，你可能更接近細節。你能拿那個嗎？

Yes, sure. It's up significantly over Q4, meaning kind of in that 30% to 40% range. And then in terms of the mix, these are predominantly operating accounts, although there is some -- somewhat excess balances in there, but that's what we're going after and where we're finding the most success is operating relationships. So I don't have a breakout by account in terms of the mix on that portfolio, although I have reviewed the names and some familiarity with the accounts and there is some excess balances associated with these -- with the new relationships, but their operating account base.

是的，當然。它比第四季度顯著上升，這意味著在 30% 到 40% 的範圍內。然後就組合而言，這些主要是運營賬戶，儘管那裡有一些 - 有點過剩的餘額，但這就是我們所追求的，我們發現最成功的地方是運營關係。因此，就該投資組合的組合而言，我沒有按賬戶分類，儘管我已經審查了這些賬戶的名稱和一些熟悉程度，並且有一些與這些賬戶相關的超額餘額——與新的關係，但他們的運營賬戶基礎。

Andrew, I could add to that, that we get a monthly production report, which we just got one for -- for March and Bryan and I both go through that in pretty good detail and remind you that we not only have a lot more deposit gatherers than we had at the beginning of last year because of the lift outs that we did. But for several years now, all of our loan production people have had deposit goals, and we can see in the March report that there's a lot of activity in spite of what's been going on for the last month. So it's going to come from 2 different directions. The deposit gatherers -- well, 3, actually, the branch folks and the folks on the loan side.

安德魯，我可以補充一點，我們得到一份月度生產報告，我們剛剛得到一份——三月份的，我和布萊恩都非常詳細地研究了這一點，並提醒你我們不僅有更多的存款由於我們所做的提升，我們收集的人數比去年年初還要多。但幾年來，我們所有的貸款生產人員都有存款目標，我們可以在 3 月份的報告中看到，儘管上個月發生了什麼，但仍有很多活動。所以它將來自兩個不同的方向。存款收集者——好吧，實際上是 3 個分支機構人員和貸款方人員。

Okay. Very good. And then maybe just trying to understand some of the puts and takes on just balance sheet size and some of the funding going into the second quarter. It looks like you built cash going into the end of the quarter here with some FHLBs, I know brokered was mentioned. But I guess just when I piece together the commentary on the loan growth, as well as it sounds like some level of optimism on deposit growth front moving forward. Does it feel like you will incrementally need to build FHLBs or brokered deposits as we go into the second quarter? Does some of that kind of, I guess, prefunding, if you will, in March, kind of keep that at bay?

好的。非常好。然後也許只是想了解一些看跌期權，並只承擔資產負債表的規模和進入第二季度的一些資金。看起來你在本季度末用一些 FHLB 積累了現金，我知道有人提到了經紀人。但我想，就在我將有關貸款增長的評論拼湊起來時，這聽起來像是對存款增長前景的某種程度的樂觀情緒。隨著我們進入第二季度，您是否覺得您將逐漸需要建立 FHLB 或經紀存款？我想，如果你願意，在 3 月份，是否有一些預籌資金可以阻止這種情況？

Well, and Don, you may want to add to this. But really, what we did do was bulk up given the circumstances to make sure we were prepared for anything that was coming at us. But if you look at our balance sheet, there's still a considerable amount of invested cash that serves to offset some of the FHLB borrowings, which were mostly defensive. And then you've got the other borrowings were done more to just bolster our position. And the brokered deposits run off over 3, 6, 9 months, which is part of the design of what we did. So I think that we're feeling like -- and I think, Don, if I -- correct me if I'm wrong, but I think we've been lowering the FHLB borrowings since the end of the quarter because we think that things have settled down and that the deposits have started to be a little more stable in our minds. You want to add to that?

好吧，唐，你可能想補充一下。但實際上，我們所做的是考慮到這種情況，以確保我們為即將到來的任何事情做好準備。但是，如果您查看我們的資產負債表，就會發現仍有大量投資現金用於抵消部分 FHLB 借款，這些借款主要是防禦性的。然後你得到了更多的其他借款來鞏固我們的地位。經紀存款會在 3、6、9 個月內流失，這是我們所做設計的一部分。所以我認為我們感覺 - 我想，唐，如果我 - 如果我錯了，請糾正我，但我認為自本季度末以來我們一直在降低 FHLB 借款，因為我們認為事情已經安定下來，存款在我們心中開始變得更加穩定。你想補充嗎？

Sure. Well, we did kind of increase our kind of cash position or overnight deposit balances as of quarter end just to be -- just to have a little bit more there because of what was going on in the last half of March. In the whole environment. But if you look at it, really, we've got almost $200 million of likely excess cash than we had the quarter before. We could -- if you look at it one way, we can fund that much in loans without having to take any more borrowings. So because I think as saying settle down will be fine with working that cash position down.

當然。好吧，我們確實在季度末增加了我們的現金頭寸或隔夜存款餘額——只是因為 3 月下半月發生的事情而在那裡多了一點。在整個環境中。但如果你看一下，真的，我們可能比上一季度擁有近 2 億美元的多餘現金。我們可以——如果你以一種方式看待它，我們可以通過貸款籌集那麼多資金，而無需再藉貸。因此，因為我認為，隨著現金頭寸的減少，安定下來會很好。

Yes. Okay. And then I guess last question for me, just with rates pulling back a little bit versus where they peaked out in kind of early March timeframe, are there any areas within the bond book that you could look to trim up either for our positioning trade or for incremental liquidity purposes to also help fund loan growth?

是的。好的。然後我想我的最後一個問題是，與 3 月初的時間框架內的峰值相比，利率略有回落，債券簿中是否有任何區域您可以考慮調整我們的頭寸交易或為了增加流動性目的也有助於為貸款增長提供資金？

Yes. We have an oversized investment portfolio right now. It's compared to our total assets. We are certainly willing to do that when it makes sense. It didn't make sense last quarter, especially in March, we did a little bit. We saw we took a little bit of loss, but it wasn't a huge amount of dollars. But the prices, the market got kind of wonky as far as there was not a lot of people looking to buy par. They were more looking to sell, and we just didn't want to sell in that environment. So we held off. There's a chance that if the prices stabilize or looking better than we might be doing some of that.

是的。我們現在有一個超大的投資組合。它與我們的總資產相比。我們當然願意在有意義的時候這樣做。上個季度沒有意義，尤其是三月份，我們做了一點。我們看到我們遭受了一點損失，但這並不是一大筆錢。但是價格，市場變得有點不穩定，因為沒有很多人想要購買平價。他們更想出售，而我們只是不想在那種環境下出售。所以我們推遲了。如果價格穩定或看起來比我們可能會做的更好，那麼有可能。

Okay.

好的。

Quite frankly, Andrew, it would have been nice to offset some losses on repositioning with that Visa shares, but it just didn't make sense, as Don said.

坦率地說，安德魯，用 Visa 股票抵消重新定位的一些損失本來很好，但正如唐所說，這沒有意義。

Our next question is from Adam Butler with Piper Sandler.

我們的下一個問題來自亞當巴特勒和派珀桑德勒。

This is Adam on for Matthew Clark. Sorry about that. Just to add on another question to the deposit commentary. I appreciate that Slide 10, separating the growth that you've seen in the Oregon and Portland area and Seattle. With -- with your commentary about the $150 million deposit pipeline, I was just curious, is that all kind of in one of the MSAs? Or is it kind of spread out between both of them?

這是馬修克拉克的亞當。對於那個很抱歉。只是在存款評論中添加另一個問題。我很欣賞幻燈片 10，將您在俄勒岡和波特蘭地區以及西雅圖看到的增長區分開來。隨著 - 關於您對 1.5 億美元存款管道的評論，我只是很好奇，這是在其中一個 MSA 中的所有內容嗎？還是在他們兩個之間分散了？

Bryan, do you want to take that?

布萊恩，你想接受嗎？

Yes. The deposit pipeline, that's bank-wide versus just reflective of what will flow in the Slide 10. So that's the bank pipeline versus the pipeline for just that region that's reflected on the bottom part of Slide 10.

是的。存款管道是銀行範圍內的，而不是僅反映幻燈片 10 中將流動的內容。因此，這就是銀行管道與僅反映在幻燈片 10 底部的那個區域的管道。

Okay. Understood. I was just trying to get an idea of what the recent team [looked] outs could possibly be doing? And maybe you will see an even larger deposit pipeline in the future quarters? Any comments on that?

好的。明白了。我只是想知道最近的團隊 [looked] outs 可能會做什麼？也許您會在未來幾個季度看到更大的存款渠道？對此有何評論？

Yes. We're obviously watching it really closely. The deposits are coming from a number of different sources is the first thing I would say, having the having a sales team without a customer base, they're out calling as well as Jeff mentioned, our existing deposit officers and fully kind of relationship bankers are all actively out calling. And so a lot of it is going to depend on just what sort of disruption we see in the market. And we're viewing the loan opportunities the same way our bankers call for years and oftentimes, it's during a period of market disruption like this where they're maybe not able to get all their needs met at another institution, and that's our opportunity to convert them. So this is the type of environment. We look at. Again, we're seeking those relationship clients, whether it be on the loan or deposit side.

是的。我們顯然正在密切關注它。存款來自許多不同的來源是我要說的第一件事，擁有一個沒有客戶群的銷售團隊，他們正在打電話給傑夫提到的，我們現有的存款官員和完全良好的關係銀行家都在積極外呼。因此，這在很大程度上取決於我們在市場上看到的是什麼樣的破壞。我們看待貸款機會的方式與我們的銀行家多年來經常呼籲的方式相同，正是在這樣的市場混亂時期，他們可能無法在另一家機構滿足他們的所有需求，這是我們的機會轉換它們。這就是環境類型。我們看。同樣，我們正在尋找那些關係客戶，無論是在貸款方面還是在存款方面。

So that wasn't a direct answer, but we remain optimistic and hopeful that we'll be able to put up some good numbers in that market down there because of the staff that we've added.

所以這不是一個直接的答案，但我們仍然樂觀並希望，由於我們增加了員工，我們能夠在那個市場上取得一些不錯的成績。

Okay. Great. I appreciate that color. And then just one question, switching over to the credit. I appreciate the commentary on the call of the office portfolio. I was just wondering if you could provide some further detail on the office portfolio, some of the loan to values you're seeing and occupancy rates in the downtown area? Anything would be appreciated.

好的。偉大的。我很欣賞那種顏色。然後只有一個問題，切換到信用。我很欣賞對辦公室投資組合的評論。我只是想知道您是否可以提供有關辦公室組合的更多詳細信息，您看到的一些貸款價值以及市區的入住率？任何事情都會受到讚賞。

Sure, Adam, I'll go ahead and take that one. Yes, this is Tony. Yes, just a little bit more color on the portfolio -- we -- at the end of the fourth quarter of last year, we wrapped up a pretty deep dive into our commercial real estate portfolio that we do on an annual basis. And that portfolio, we looked at about 60% of the office loans, for example. And that particular portfolio had a, I think, an average loan-to-value -- and this would be focused on the larger deals in our portfolio, probably for those over $1.5 million. And our average loan to value was -- weighted average loan to value is about 59%, and our debt service coverage was about 2.3x. So felt pretty good about those numbers.

當然，亞當，我會繼續拿那個。是的，這是托尼。是的，在去年第四季度末，我們對投資組合進行了更多的顏色分析，我們對每年進行的商業房地產投資組合進行了深入研究。例如，在那個投資組合中，我們查看了大約 60% 的辦公室貸款。我認為，那個特定的投資組合有一個平均貸款價值比——這將集中在我們投資組合中較大的交易上，可能是超過 150 萬美元的交易。我們的平均貸款價值比——加權平均貸款價值比約為 59%，我們的償債覆蓋率約為 2.3 倍。所以對這些數字感覺很好。

I mean clearly, the downtown core markets are experiencing some significant distress already, particularly Seattle and Portland. And again, I think we're very happy, as I mentioned in my comments, that we have very little exposure in those markets. And if you do look at the core market, I was looking at the top 10 we have in those core markets. And I think 9 of them are on our occupied properties, which, again, makes us feel pretty good about that mix.

我的意思是，市中心的核心市場已經經歷了一些嚴重的困境，尤其是西雅圖和波特蘭。再一次，我認為我們非常高興，正如我在評論中提到的那樣，我們在這些市場的風險敞口很小。如果你真的看核心市場，我看的是我們在這些核心市場中的前 10 名。而且我認為其中 9 個在我們佔用的財產上，這再次讓我們對這種組合感到非常滿意。

One other, I guess, I'll point out about of our office portfolio in the $580 million range, about $95 million of that is medical office, which we look at as a much lower risk profile. And that market continues to perform pretty well, really across our footprint. So I'll stop there and see if you had anything more specific you might be looking for.

另一個，我想，我會指出我們在 5.8 億美元範圍內的辦公室投資組合，其中約 9500 萬美元是醫療辦公室，我們認為它的風險要低得多。而且這個市場繼續表現得很好，真的在我們的足跡上。所以我會停在那裡，看看你是否有任何更具體的東西你可能正在尋找。

Our next question comes from David Feaster with Raymond James.

我們的下一個問題來自 David Feaster 和 Raymond James。

I wanted to touch on the loan growth side. Just here in your prepared remarks, it sounds like growth you're expecting it to remain relatively stable. I'm just curious, how is demand trending across your footprint? Where are you seeing good opportunities for growth at this point? Are the new hires really allowing you to gain share and sustain a good pace of growth? And just to your commentary on spreads widening, I'm curious where new loan yields are at today.

我想談談貸款增長方面。就在您準備好的發言中，聽起來您希望增長保持相對穩定。我只是好奇，您的足跡中的需求趨勢如何？目前您在哪裡看到良好的增長機會？新員工真的能讓你獲得市場份額並保持良好的增長速度嗎？就您對利差擴大的評論而言，我很好奇今天的新貸款收益率在哪裡。

Bryan, do you want to take that?

布萊恩，你想接受嗎？

Sure. Well, maybe I'll start with just a broad comment. It is those projects that were maybe rate sensitive. So we've seen some of those fall off really over the last year related to that construction cost increases over the last year. So that's continued. We've got a number of other customers that have been working on projects for the last few years, and those are the ones that we're seeing continuing ahead and the underlying business has a real strong backlog, and they still feel confident that they're moving ahead with those sort of projects. And no specific geography. I will say our new teams and new bankers without a lot of portfolio, the ones that are out, obviously calling they're contributing to that overall pipeline.

當然。好吧，也許我將從一個廣泛的評論開始。正是那些可能對利率敏感的項目。因此，我們已經看到其中一些在過去一年中確實下降，這與去年的建築成本增加有關。所以就這樣繼續了。我們有許多其他客戶在過去幾年一直致力於項目，我們看到這些客戶正在繼續前進，並且基礎業務有真正強大的積壓，他們仍然相信他們繼續推進這類項目。而且沒有特定的地理位置。我會說我們的新團隊和新銀行家沒有很多投資組合，那些已經出局的人，顯然是在為整個管道做出貢獻。

We have more salespeople now than we did a year ago at this time. So that's also a factor. In terms of new loan yields, if you -- we quoted the numbers for the full quarter, I can give you the numbers for March will give you a sense of that on commercial business for March. The rate was [$6.32] versus, I mentioned, [$5.97] for the full quarter. And then for all new loans -- let's see if I have that number here. Yes, [$6.25] for March versus [$6.01] average for the full quarter. So we have seen spreads widen. Our challenge, David, obviously, not prime-based loans because prime at a reasonable level, but the fixed rate index is, if you look at the 5-year FHLB, it's at [$4.17] when I looked earlier this week. And so even with a couple of hundred basis point spread, that puts it in the low [6s], that spread is higher than what we were seeing a year ago.

我們現在的銷售人員比一年前的這個時候多。所以這也是一個因素。就新貸款收益率而言，如果你——我們引用了整個季度的數字，我可以給你 3 月份的數字，讓你對 3 月份的商業業務有所了解。整個季度的利率是 [6.32 美元]，而我提到的是 [5.97 美元]。然後對於所有新貸款——讓我們看看我這裡是否有這個數字。是的，3 月份的 [$6.25] 與整個季度的平均值 [$6.01] 相比。所以我們看到利差擴大了。大衛，我們的挑戰顯然不是基於優質貸款，因為優質貸款處於合理水平，但固定利率指數是，如果你看一下 5 年期 FHLB，當我本週早些時候看時，它是 [4.17 美元]。因此，即使有幾百個基點的利差，這也使其處於低 [6s]，該利差仍高於我們一年前看到的水平。

Again, that was because everybody's deposit costs were so low. So it isn't -- we haven't seen spreads come back to what we think would be a reasonable -- a more reasonable level. But we have seen them come up from the really low spreads that we're seeing over the last few years. So we're hoping those spreads keep continuing up. We're, again, looking at this if we've been particularly existing core relationships and new customer opportunities if they fit that relationship profile, maybe we've been calling on them for years. And their current bank is pricing much higher or not able or not as interested in doing lending.

同樣，那是因為每個人的存款成本都很低。所以它不是——我們還沒有看到利差回到我們認為合理的——更合理的水平。但我們已經看到它們從過去幾年我們看到的非常低的價差中走出來。所以我們希望這些利差繼續上升。如果我們特別關注現有的核心關係和新的客戶機會，如果他們符合這種關係，我們再次關注這個問題，也許我們多年來一直在呼籲他們。他們目前的銀行定價要高得多，或者不能或對貸款不感興趣。

We see this as a great opportunity to pick up those core long-term relationship clients and want to stay in the market and support the markets and support our bankers and better our customer base through this volatility if those opportunities come about.

我們認為這是一個很好的機會來獲得那些核心的長期關係客戶，並希望留在市場上並支持市場並支持我們的銀行家，並在這些機會出現時通過這種波動改善我們的客戶群。

David, this is Jeff. It might be a little anecdotal in terms of response to your question, but I see only the deals that hit a certain level based on relationship size, not necessarily loan size. And we've seen a steady flow of deals over the last several months. And interestingly enough, there's several of them that when I see the report out on what is being requested for approval, it's often saying you saw this deal in October when it first started going together and this is the deal actually happening. So it feels like from my vantage point, the deals are there, they're just moving a little bit slower.

大衛，這是傑夫。就您的問題的回答而言，這可能有點軼事，但我只看到根據關係規模達到一定水平的交易，不一定是貸款規模。在過去的幾個月裡，我們看到了穩定的交易流。有趣的是，其中有幾個，當我看到關於請求批准的內容的報告時，它經常說你在 10 月份第一次開始合併時看到了這筆交易，而這就是實際發生的交易。所以從我的角度來看，感覺交易就在那裡，只是移動速度慢了一點。

Okay. Okay. That's encouraging. And then maybe just touching on -- we've talked several times about the recruiting that you guys have done, and there's obviously a lot of disruption around you. I'm just curious your appetite for more hires as these guys are starting to hit the ground running do you have an appetite for more? Are you seeing more opportunities? How are conversations going? And maybe what markets or geographies or segments would you be looking to potentially add to?

好的。好的。這是令人鼓舞的。然後也許只是觸及 - 我們已經多次談到你們所做的招聘，顯然你們周圍有很多干擾。我只是很好奇您是否有興趣招聘更多員工，因為這些人已經開始投入運營，您有興趣招聘更多員工嗎？你看到更多機會了嗎？談話進展如何？也許您希望加入哪些市場、地區或細分市場？

I would start by saying that you know that we're always positioned to take advantage of opportunities on the M&A side. But obviously, that is probably on the sidelines for a while. But we've always had a bias for teams, and we've actually illustrated that in our deck. There's a slide in there that shows M&A versus teams. I guess, I would leave it with David and Bryan may want to add to this, that we're always interested in teams, particularly if they augment what we already have or enhance a team that already exists but would probably focus only on the 3-state area that we're in now. And I think that a team right now would have to be really compelling for us to take action because while the team down south has been with us surprisingly almost a year now because they all came across in May. They're making good headway.

我首先要說的是，您知道我們始終準備好利用併購方面的機會。但顯然，這可能會被擱置一段時間。但我們一直對團隊有偏見，我們實際上已經在我們的套牌中說明了這一點。那裡有一張幻燈片顯示併購與團隊。我想，我會把它留給大衛，布萊恩可能想補充一點，我們總是對團隊感興趣，特別是如果他們增加了我們已經擁有的或增強了已經存在但可能只關注 3 -我們現在所在的州。而且我認為現在的團隊必須非常有說服力才能讓我們採取行動，因為雖然南下的團隊已經和我們在一起快一年了，因為他們都是在五月份遇到的。他們進展順利。

Still, we're trying to give them as much support as we can due to their newness and their in Eugene, for example, newness in that market. And Boise is just getting their legs under them. So we want to make sure we don't get spread out, then we can't support them to. So like I said, it would have to be pretty compelling, probably more so interested in one-offs and there's a couple of spots in the footprint that we would like to flesh out a little bit due to maybe some of the retirements that have been going on and repositioning of some people. So we're always looking, but to do a whole team would have to be pretty compelling. Bryan, anything you want to add to that?

儘管如此，由於他們的新穎性以及他們在尤金的新穎性，例如該市場的新穎性，我們仍在努力為他們提供盡可能多的支持。博伊西只是讓他們的腿在他們之下。所以我們要確保我們不會分散，否則我們無法支持他們。所以就像我說的那樣，它必須非常引人注目，可能對一次性更感興趣，並且由於可能已經退役了一些，我們想充實足跡中的幾個地方繼續和重新定位一些人。所以我們一直在尋找，但是做一個完整的團隊必須非常引人注目。布萊恩，你想補充什麼嗎？

No, I agree. Totally we've taken on a lot and it's going well. And we just filled the entire team in Boise here over the last few months. And so we have some as Jeff said, onesie-twosies, we've got some retirements. So we're always out recruiting and then we're always willing to meet and listen and if it was a really compelling situation, we'd certainly take a hard look. But I agree with Jeff, we we've done a lot and we'd like to continue to support these groups well to have a really favorable onboarding experience for them and help them in any way we can. So...

不，我同意。總的來說，我們承擔了很多，而且進展順利。在過去的幾個月裡，我們剛剛填補了博伊西的整個團隊。所以我們有一些 Jeff 說的，onesie-twosies，我們有一些退休。所以我們總是在外面招聘，然後我們總是願意見面和傾聽，如果這是一個真正令人信服的情況，我們肯定會認真考慮。但我同意 Jeff 的觀點，我們已經做了很多，我們希望繼續很好地支持這些團體，為他們提供真正有利的入職體驗，並儘我們所能幫助他們。所以...

David, we also need to be cognizant of our expense base, too. That's why it has to be really compelling because we really need to keep an eye on that now that we've added the teams that we have.

大衛，我們也需要了解我們的費用基礎。這就是為什麼它必須真正引人注目，因為既然我們已經添加了我們擁有的團隊，我們真的需要關注這一點。

Yes. Yes. Understood. And just maybe switching gears to capital. You already touched on the M&A side a bit. But just you guys manage your cash really well-positioned. You don't have the same AOCI issues that a lot of other banks have very well-capitalized balance sheet. Just curious your thoughts on capital at this point and your willingness to return capital? Looking at the buybacks, I mean, you look back, I mean, the stocks, where it's trading out cheaper than where we bought stock back in the past several years. I'm just curious your appetite for that or given the uncertainty, are we kind of more in a capital preservation mode.

是的。是的。明白了。也許只是轉向資本。您已經稍微談到了併購方面。但是，只有你們才能很好地管理您的現金。您沒有許多其他銀行擁有非常充足的資產負債表的 AOCI 問題。只是好奇您此時對資本的看法以及您返還資本的意願？看看回購，我的意思是，你回顧一下，我的意思是，股票的交易價格比我們過去幾年回購股票的價格便宜。我只是好奇你對此的胃口，或者考慮到不確定性，我們是否更傾向於資本保全模式。

Don, do you want to take that?

唐，你要拿那個嗎？

Yes, I'll take that. Yes, we have done buybacks before and right at even levels higher than this. I think that our regulatory capital ratios are strong. TCE ratio is a little low still because of the AOCI, although improving every quarter -- it's a little a little uncertain whether we could be heading into a recession. So we may get involved some. We also may wait depending on just the economic environment, but we are watching that carefully. I don't have really any guidance to give you in that area at this point, but we are considering it.

是的，我會接受的。是的，我們之前進行過回購，甚至比這更高的水平。我認為我們的監管資本比率很高。由於 AOCI，TCE 比率仍然有點低，儘管每個季度都在改善——我們是否會陷入衰退有點不確定。所以我們可能會參與其中。我們也可能僅根據經濟環境等待，但我們正在仔細觀察。在這一點上，我真的沒有任何指導可以給你，但我們正在考慮。

Do you have an authorization in place? And how much do you have left at I don't remember...

你有適當的授權嗎？你還剩多少我不記得了......

We have slightly over 500,000 left, shares -- 500,000 shares left in our current repurchase plan. And easily do -- and when we do new plans, it's usually about 1.5 million shares at a time.

我們還剩下略多於 500,000 股，我們目前的回購計劃還剩下 500,000 股。而且很容易做到——當我們制定新計劃時，通常一次大約有 150 萬股。

There are no questions waiting at this time. So I'll pass the conference back over to management team for any further remarks.

目前沒有問題等待。因此，我會將會議轉回給管理團隊，以徵求任何進一步的意見。

Thank you, Sierra. If there's no more questions, we'll wrap up the call. We thank you all for your time and your support and your interest in our ongoing performance, and we look forward to seeing many of you in the coming weeks. Thank you, and goodbye.

謝謝你，塞拉利昂。如果沒有其他問題，我們將結束通話。我們感謝大家的時間和支持以及對我們持續表現的興趣，我們期待在未來幾週見到你們中的許多人。謝謝，再見。

That concludes the Heritage Financial Corporation's Q1 2023 Earnings Call. The replay for today's call will be available until Thursday, April 27. To access the replay, please dial 1 866-813-9403 and enter access code 862416, again dial 1 866-813-9403 and enter access code 862416. Thank you all for your participation. You may now disconnect your lines.

Heritage Financial Corporation 的 2023 年第一季度財報電話會議到此結束。今天電話會議的重播將持續到 4 月 27 日星期四。要觀看重播，請撥打 1 866-813-9403 並輸入接入碼 862416，再次撥打 1 866-813-9403 並輸入接入碼 862416。謝謝大家供您參與。您現在可以斷開線路。