Heritage Financial Corp (HFWA) 2023 Q3 法說會逐字稿

Thank you all for joining. I would like to welcome you all to the Heritage Financial Corporation Q3 2023 Earnings Conference Call. My name is Brika, and I'll be your moderator for today's call. (Operator Instructions).

感謝大家的加入。歡迎大家參加 Heritage Financial Corporation 2023 年第三季財報電話會議。我叫 Brika，我將擔任今天電話會議的主持人。 （操作員說明）。

I would now like to pass the conference over to your host, Jeff Deuel, CEO of Heritage Financial to begin. So Jeff, please go ahead.

現在我想請主持人、Heritage Financial 執行長 Jeff Deuel 開始會議。傑夫，請繼續。

Thank you, Brika. Welcome, and good morning to everyone who called in. And for those who may listen later, this is Jeff Deuel, CEO of Heritage Financial. Attending with me are Bryan McDonald, President and Chief Operating Officer; Don Hinson, Chief Financial Officer; and Tony Chalfant, Chief Credit Officer.

謝謝你，布里卡。歡迎各位來電的人，早安。我是 Heritage Financial 執行長 Jeff Deuel。與我一起出席的有總裁兼營運長 Bryan McDonald；唐‧辛森 (Don Hinson)，財務長；和首席信貸官托尼·查爾凡特 (Tony Chhalfant)。

Our third quarter earnings release went out this morning premarket, and hopefully, you have had the opportunity to review it prior to the call. We have also posted an updated third quarter investor presentation on the Investor Relations portion of our corporate website, which includes more detail on our deposits, loan portfolio, liquidity and credit quality. We will reference the presentation during the call. Please refer to the forward-looking statements in the press release.

我們的第三季財報於今天早上盤前發布，希望您有機會在電話會議之前對其進行審查。我們也在公司網站的投資者關係部分發布了更新的第三季投資者介紹，其中包括有關我們的存款、貸款組合、流動性和信用品質的更多詳細資訊。我們將在通話期間參考簡報。請參閱新聞稿中的前瞻性陳述。

We're pleased to report another solid quarter with earnings per share exceeding consensus. This quarter's performance was enhanced by loan recoveries. These recoveries are further evidence of our strong risk management practices and how they continue to benefit us. We continue to see pressure on deposit pricing in Q3, which is impacting our net interest margin. Deposit balances stabilized in Q3, although the mix of deposits continue to partially shift into higher rate products.

我們很高興地報告又一個穩健的季度，每股收益超出了共識。本季的業績因貸款回收而提高。這些復甦進一步證明了我們強大的風險管理實踐以及它們如何繼續使我們受益。我們繼續看到第三季存款定價面臨壓力，這正在影響我們的淨利差。儘管存款結構繼續部分轉向利率較高的產品，但第三季存款餘額趨於穩定。

As expected, due mostly to the rate environment, loan growth slowed in Q3 compared to the first 2 quarters of the year, although year-to-date, we are still reporting low single-digit loan growth. Overall, we continue to focus on growing a strong balance sheet with ample liquidity and capital that will serve us well in the present and in the future.

正如預期的那樣，主要由於利率環境的影響，第三季貸款成長較今年前兩個季度放緩，儘管今年迄今為止，我們仍報告較低的個位數貸款成長。總體而言，我們繼續專注於發展強大的資產負債表，擁有充足的流動性和資本，這將在當前和未來為我們提供良好的服務。

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

我們現在請唐，他將花幾分鐘時間介紹我們的財務表現。

Thank you, Jeff. I will be reviewing some of the main drivers of our performance for Q3. As I walk through our financial results, unless otherwise noted, all of the prior period comparisons will be with the second quarter of 2023.

謝謝你，傑夫。我將回顧第三季業績的一些主要驅動因素。當我瀏覽我們的財務表現時，除非另有說明，否則所有前期比較都將與 2023 年第二季進行比較。

Starting with the balance sheet. Loan growth slowed in Q3, increasing $15.5 million for the quarter. Year-to-date loan growth through Q3 is at 5.3%. Yields on the loan portfolio were 5.30% for the quarter, which was 11 basis points higher than Q2 and contributed to a 12 basis point increase in yield earning assets. Bryan McDonald will have an update on loan production and yields in a few minutes.

從資產負債表開始。第三季貸款成長放緩，增加 1,550 萬美元。今年第三季迄今的貸款成長率為 5.3%。本季貸款組合收益率為 5.30%，比第二季高 11 個基點，帶動收益資產增加 12 個基點。布萊恩麥克唐納 (Bryan McDonald) 將在幾分鐘內通報貸款生產和收益率的最新情況。

Unlike the declines over the past few quarters. Total deposits increased $39.6 million during the quarter, the increase is due substantially to higher CD balances, as customers continue to take advantage of the higher rate environment by lowering their excess balances and lower paying non-maturity deposit accounts. These factors contributed to an increase of 31 basis points in our cost of interest-bearing deposits to 1.23% for Q3.

與過去幾季的下滑不同。本季存款總額增加了 3,960 萬美元，增加的主要原因是定期存款餘額增加，因為客戶繼續透過降低超額餘額和支付非到期存款帳戶來利用較高的利率環境。這些因素導致第三季我們的計息存款成本上升 31 個基點至 1.23%。

Also impacting total deposit balances in Q3 was the sale of our (inaudible) Ellensburg branch along with its $14.7 million of deposits as well as an increase of $62.8 million in brokered CDs during the quarter. Due to the current market pressure related to deposit rates, we expect to continue to experience an increase in the cost of our core deposits, although at a slower pace. This is illustrated by the cost of our interest-bearing deposits being 1.35% for the month of September with a spot rate of 1.38% as of September 30.

對第三季總存款餘額產生影響的還有我們（聽不清楚）埃倫斯堡分行的出售及其 1,470 萬美元的存款，以及本季經紀 CD 增加了 6,280 萬美元。由於目前與存款利率相關的市場壓力，我們預期核心存款成本將繼續增加，但增幅較慢。截至 9 月 30 日，我們 9 月的計息存款成本為 1.35%，即期利率為 1.38%，就說明了這一點。

Investment balances decreased $136 million during Q3, due to higher-than-normal maturities and prepayments during the quarter, as well as the sale of $47 million of securities. These sales in combination with the purchase of $23 million of higher earnings securities, was done to partially restructure the portfolio, while also increasing our cash position. A loss of $1.9 million was recognized on these sales in Q3, most of which occurred in September. It is estimated that the annualized income improvement from these transactions will be $1.4 million, resulting in an earn-back period of 1.4 years. We will consider additional loss trades in order to continue to defend our margin from downward pressures.

第三季投資餘額減少 1.36 億美元，原因是該季度的到期日和預付款高於正常水平，以及出售了 4,700 萬美元的證券。這些銷售與購買 2,300 萬美元的高收益證券相結合，旨在部分重組投資組合，同時也增加我們的現金部位。第三季這些銷售確認了 190 萬美元的損失，其中大部分發生在 9 月。據估計，這些交易的年化收入將提高 140 萬美元，從而實現 1.4 年的獲利回收期。我們將考慮額外的虧損交易，以繼續保護我們的利潤免受下行壓力的影響。

Moving on to the income statement. Net interest income decreased $206,000 due to a decrease in net interest margin, partially offset by an increase in average earning assets. The NIM decreased to 3.47% for Q3 from 3.56% in the prior quarter. The decrease in NIM was primarily due to the cost of interest-bearing deposits increasing more rapidly than the yields on earning assets. We expect NIM to decrease further in Q4, since the NIM for the month of September was 5 basis points lower than it was for the quarter. The pace and duration of our decrease in margin will be highly dependent on continued increases in our cost of interest-bearing deposits, as well as maintaining deposit balances.

繼續看損益表。由於淨利差下降，淨利息收入減少了 206,000 美元，但部分被平均獲利資產的增加所抵消。第三季淨利差從上一季的 3.56% 下降至 3.47%。淨利差的下降主要是由於生息存款成本的成長快於生息資產收益率的成長。我們預計第四季的淨利差將進一步下降，因為 9 月的淨利差比本季低 5 個基點。我們保證金下降的速度和持續時間將在很大程度上取決於我們的生息存款成本的持續增加以及維持存款餘額。

As our cost deposits as well as deposit balances level off, we expect to experience margin stabilization due to the repricing of adjustable rate loans in addition to higher origination rates on new loans. We recognized a reversal of provision for credit losses in the amount of $878,000 during Q3 versus a provision expense of $1.9 million in Q2. The reversal of provision expense was due to net recoveries of $1.2 million recognized during the quarter. Tony will provide more information on these recoveries in a few minutes.

隨著我們的存款成本和存款餘額趨於平穩，由於可調整利率貸款的重新定價以及新貸款發放利率的提高，我們預計利潤率將會穩定。我們在第三季確認了 878,000 美元的信貸損失準備金轉回，而第二季的準備金支出為 190 萬美元。撥備費用的轉回是由於本季確認的淨回收額為 120 萬美元。托尼將在幾分鐘內提供有關這些恢復的更多資訊。

Non-interest income decreased $1 million from the prior quarter, primarily due to the loss on the sale of securities previously mentioned, partially offset by gain of $610,000 on the sale of our Ellensburg branch that I discussed earlier. Non-interest expense decreased $355,000 to approximately $41 million in Q3. This was due to decreases in numerous categories, partially offset by an increase in compensation and benefits. Compensation expense was higher compared to Q2 due to the adjustments we've made to the accrual for incentive-based compensation in Q2. All of our regulatory capital ratios remain comfortably above well-capitalized thresholds and our TCE ratio is at 8.2%, down slightly from the prior quarter due primarily to AOCI. In addition, with a loan deposit ratio of approximately 76% and cash balances over $200 million, we have plenty of liquidity to keep -- to grow our loan portfolio.

非利息收入比上一季減少了 100 萬美元，主要是由於前面提到的出售證券的損失，部分被我之前討論過的出售埃倫斯堡分行的收益 610,000 美元所抵消。第三季非利息支出減少 35.5 萬美元，至約 4,100 萬美元。這是由於許多類別的減少，但部分被薪酬和福利的增加所抵消。由於我們對第二季度基於激勵的薪酬的應計費用進行了調整，薪酬費用高於第二季度。我們所有的監管資本比率仍然輕鬆高於資本充足的門檻，我們的 TCE 比率為 8.2%，比上一季略有下降，這主要是由於 AOCI。此外，貸款存款比率約為 76%，現金餘額超過 2 億美元，我們有充足的流動性可以保留，以擴大我們的貸款組合。

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

我現在將把電話轉給托尼，他將了解我們信用品質指標的最新情況。

Thank you, Don. I'm pleased to report that credit quality remained strong and stable through the first 9 months of the year.

謝謝你，唐。我很高興地報告，今年前 9 個月的信貸品質保持強勁和穩定。

As of quarter end, nonaccrual loans totaled just over $3 million, and we did not hold any OREO. This represents 0.07% of total loans as compared to 0.11% at the end of the second quarter. Nonaccrual loans declined by $1.6 million during the quarter and are now down by 51% over the last 12 months. Reductions of just over $2 million were largely tied to the payoff of an agricultural loan that was the culmination of a long-term workout. Partially offsetting the reduction was the movement of 3 C&I relationships to nonaccrual status in the aggregate amount of $440,000.

截至季末，非應計貸款總額略高於 300 萬美元，我們沒有持有任何奧利奧。這佔貸款總額的 0.07%，而第二季末為 0.11%。本季非應計貸款減少了 160 萬美元，在過去 12 個月中減少了 51%。略高於 200 萬美元的減少主要與償還農業貸款有關，該貸款是長期解決方案的頂峰。 3 個 C&I 關係轉為非應計狀態，總計 440,000 美元，部分抵消了這一減少。

Page 25 of the investor presentation reflects the significant improvement we've experienced in our nonaccrual loans, since the end of 2020. This quarter, we began including loans over 90 days past due and still accruing interest in our nonperforming assets total. This total includes 3 loans that are well secured by commercial real estate at low loan-to-value ratios and are in the process of collection. They remain on accrual status because the risk of loss is very low.

投資者簡報的第25 頁反映了自2020 年底以來我們的非應計貸款取得的顯著改善。本季度，我們開始將逾期90 天以上的貸款包括在內，並且仍在不良資產總額中計入利息。這一總額包括 3 筆貸款，這些貸款由商業房地產提供良好擔保，貸款價值比較低，目前正在催收過程中。它們仍處於應計狀態，因為損失風險非常低。

Criticized loans, those risk rate it special mention and substandard totaled just under $135 million at the end of the quarter. This is a decrease of $8.5 million or 6% from the end of the second quarter. Criticized loans are virtually unchanged since the end of 2022. Within that group, loans rated substandard remained stable and are actually down by $3 million over that same time period.

截至本季末，受到批評的貸款、特別提及的風險率貸款和次級貸款總額略低於 1.35 億美元。這比第二季末減少了 850 萬美元，即 6%。自 2022 年底以來，受到批評的貸款幾乎沒有變化。在該類別中，評級不合格的貸款保持穩定，實際上同期減少了 300 萬美元。

Overall, our commercial real estate portfolio continues to perform well and has been stable through the first 9 months of the year. Total criticized CRE loans represent 3.1% of our total CRE portfolio and 2.2% of our entire loan portfolio. While we continue to closely watch our portfolio of office loans, we have yet to see any material deterioration in credit quality.

總體而言，我們的商業房地產投資組合繼續表現良好，並在今年前 9 個月保持穩定。受到批評的 CRE 貸款總額占我們 CRE 投資組合總額的 3.1%，佔整個貸款組合的 2.2%。雖然我們繼續密切關注我們的辦公貸款組合，但我們尚未看到信貸品質出現任何實質惡化。

At quarter end, criticized office loans totaled approximately $21.5 million, which is down from the $25 million reported at the end of the second quarter. This represents 3.8% of our total portfolio of owner and nonowner-occupied office loans.

截至季末，受到批評的辦公大樓貸款總額約為 2,150 萬美元，低於第二季末報告的 2,500 萬美元。這占我們業主和非業主自用辦公室貸款組合總額的 3.8%。

In summary, we believe our office CRE portfolio is conservatively underwritten very granular and not materially exposed to the high risk of the central business district areas. Page 24 of the investor presentation provides more detailed information about our office loan portfolio.

總而言之，我們認為我們的辦公室商業房地產投資組合保守地承保非常細化，並且不會受到中央商務區地區高風險的重大影響。投資者介紹的第 24 頁提供了有關我們辦公室貸款組合的更多詳細資訊。

During the third quarter, we had a large recovery on the payoff of the agricultural loan that I mentioned earlier. This represented the majority of the $1.3 million in total recoveries and was partially offset by charge-offs of $138,000, resulting in a net recovery of just under $1.2 million for the quarter. Through the first 9 months of the year, we're in a net recovery position of $895,000.

第三季度，我剛才提到的農業貸款的還款有了很大的恢復。這佔總追償額 130 萬美元的大部分，並被 138,000 美元的沖銷部分抵消，導致本季淨追償額略低於 120 萬美元。今年前 9 個月，我們的淨復甦部位為 895,000 美元。

On Page 27 of the investor presentation, is a new slide that we believe demonstrates that by proactively identifying criticized assets within our portfolio, we've been able to keep our net charge-off levels lower than our peers. While our credit metrics remain strong, we remain watchful of inflation pressures and other potential weaknesses in the broader economic environment.

投資者簡報第 27 頁上有一張新投影片，我們認為該投影片表明，透過主動識別投資組合中的受批評資產，我們能夠將淨沖銷水準保持在低於同行的水平。儘管我們的信貸指標仍然強勁，但我們仍對通膨壓力和更廣泛的經濟環境中的其他潛在弱點保持警惕。

We are confident that our consistent and disciplined approach to credit underwriting will continue to serve us well, should the economy show any material deterioration in the coming quarters.

我們相信，如果未來幾季經濟出現任何實質惡化，我們一貫且嚴格的信貸承銷方法將繼續為我們提供良好服務。

I'll now turn the call over to Bryan for an update on loan production.

我現在將把電話轉給布萊恩，以了解貸款生產的最新情況。

Thanks, Tony. I'm going to provide detail on our third quarter loan production results, starting with our commercial lending group. For the quarter, our commercial teams closed $217 million in new loan commitments, up from $212 million last quarter and down from $277 million closed in the third quarter of 2022. Please refer to Page 19 in the third quarter investor presentation for additional detail on new originated loans over the past 5 quarters.

謝謝，托尼。我將提供有關我們第三季貸款生產結果的詳細信息，首先是我們的商業貸款部門。本季度，我們的商業團隊完成了2.17 億美元的新貸款承諾，高於上一季的2.12 億美元，低於2022 年第三季的2.77 億美元。請參閱第三季投資者介紹中的第19 頁，以了解有關新貸款的更多詳細資訊。過去 5 個季度發放的貸款。

The commercial loan pipeline ended the third quarter at $291 million, down from $473 million last quarter and down from $604 million at the end of the third quarter of 2022. Our heavy filtering of nonowner-occupied real estate loan request, since March is the primary driver of the pipeline decline, although loan demand has also been softening as interest rates have moved higher.

第三季末的商業貸款管道為2.91 億美元，低於上一季的4.73 億美元，也低於2022 年第三季末的6.04 億美元。自3 月以來，我們對非業主自用房地產貸款請求進行了嚴格過濾。儘管隨著利率上升，貸款需求也有所疲軟，但管道下降的推動因素。

Loan growth was below last quarter at $15 million despite the higher volume of new loans originated due to a combination of higher prepays and payoffs, lower net advances on loans and lower principal balance on loans originated in the quarter. Please see Slides 20 and 21 of the investor deck for further detail on the change in loans during the quarter.

儘管本季預付款和還款增加、貸款淨預付款減少以及貸款本金餘額減少，導致新貸款量增加，但貸款成長仍低於上季的 1,500 萬美元。請參閱投資者幻燈片的幻燈片 20 和 21，以了解有關本季貸款變化的更多詳細資訊。

Based on our lower pipeline levels and the softening loan demand, we anticipate our organic loan growth rate to be in the low-single-digits over the next couple of quarters and largely driven by prepay levels and advances on construction loans. The deposit pipeline ended the quarter at $134 million, up from $118 million last quarter and balances associated with new deposit accounts opened during the quarter totaled $39 million. The increase in the deposit pipeline is broad based across the footprint, although we are seeing a higher concentration of new accounts coming from our new teams and the most disrupted markets.

基於我們較低的管道水平和疲軟的貸款需求，我們預計未來幾季的有機貸款成長率將處於低個位數，這主要是由預付款水準和建築貸款預付款推動的。本季末存款管道為 1.34 億美元，高於上季的 1.18 億美元，本季新開存款帳戶相關餘額總計 3,900 萬美元。儘管我們看到來自我們的新團隊和擾動最嚴重的市場的新帳戶更加集中，但存款管道的成長在各個領域都有廣泛的基礎。

The Oregon and Portland MSA is the only major market, where we saw net deposit growth during the quarter, with details reflected on Slide 10 of the investor presentation.

俄勒岡州和波特蘭 MSA 是本季淨存款成長的唯一主要市場，投資者簡報的幻燈片 10 反映了詳細資訊。

Moving to interest rates. Our average third quarter interest rate for new commercial loans was 6.45%, which is 29 basis points higher than the 6.16% average for last quarter. In addition, the average third quarter rate for all new loans was 6.54%, up 27 basis points from 6.27% last quarter. The increase is due to a combination of higher underlying index rates and widening spreads implemented in 2023 versus working through the pipeline coming into the year that included pricing committed at lower levels.

轉向利率。第三季新增商業貸款平均利率為6.45%，較上季6.16%的平均利率高出29個基點。此外，第三季所有新增貸款平均利率為6.54%，較上季的6.27%上升27個基點。這一增長是由於 2023 年實施的標的指數利率上升和利差擴大，而今年的工作包括承諾較低水準的定價。

The market continues to be competitive, particularly for C&I relationships. The mortgage department closed $18 million in new loans in the third quarter of 2023 compared to $25 million closed in the second quarter of 2023 and $26 million in the third quarter of 2022. The mortgage loan pipeline ended the quarter at $10 million versus $13 million last quarter and $18 million at the end of the third quarter of 2022. With mortgage rates remaining at higher levels, we anticipate volumes will continue at the relatively low levels we have seen year-to-date.

市場競爭依然激烈，特別是對於工商業關係而言。抵押貸款部門在2023 年第三季完成了1,800 萬美元的新貸款，而2023 年第二季完成了2,500 萬美元，2022 年第三季完成了2,600 萬美元。本季末抵押貸款管道為1,000 萬美元，而上一季為1300 萬美元。到 2022 年第三季末將達到 1800 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今年迄今相對較低的水平。

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 third quarter. While we continue to experience the challenges of this rate environment on our deposit franchise, we are confident that the strength of our franchise will continue to benefit us over the long term. Our relatively low loan-to-deposit ratio positions us well to continue 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，我們對第三季的表現感到滿意。雖然我們的存款業務繼續面臨這種利率環境的挑戰，但我們相信，從長遠來看，我們的業務優勢將繼續使我們受益。我們相對較低的貸存比率使我們能夠繼續支持現有客戶並尋求新的高品質關係。

And we will continue to focus on expense management and improving efficiencies within the organization. Overall, we believe we are well positioned to navigate the challenges ahead and to take advantage of any potential dislocation in our markets that may occur. That's the conclusion of our prepared comments.

我們將繼續關注費用管理和提高組織內部的效率。總的來說，我們相信我們有能力應對未來的挑戰，並利用市場中可能發生的任何潛在混亂。這是我們準備好的評論的結論。

So Brita, we're ready to open the call to any questions callers may have.

Brita，我們已準備好解答來電者可能提出的任何問題。

(Operator Instructions) The first question we have on the phone line comes from Matthew Clark of Piper Sandler.

（操作員說明）電話線上的第一個問題來自 Piper Sandler 的 Matthew Clark。

Thanks. Good morning, gentlemen. First one for me, just on the securities sold in the quarter, can you give us a sense for the timing of that sale and the yield pickup that you anticipate from reinvesting those proceeds? And then as a follow-up to that, just your appetite to do more.

謝謝。早安，先生們。對我來說，第一個問題是關於本季出售的證券，您能否讓我們了解出售的時間以及您預計將這些收益再投資所帶來的收益率上升？然後作為後續行動，只是你想做更多事情的慾望。

Matthew, we did it in September. So we didn't really get much benefit of it in Q3. The overall -- an estimated, again, we purchased some securities, about $23 million, [have] $566,000. The rest went into cash, and of course, that's earning about $540,000 of the $45 million that we sold. The average estimated pickup on the -- annualized is $1.4 million or you might think of $350,000 per quarter on that. So if you calculate that, that's about a NIM pickup of about 2 basis points.

馬修，我們九月就做到了。所以我們在第三季並沒有真正獲得太多好處。總體而言，我們再次估計購買了一些證券，大約 2,300 萬美元，[有] 566,000 美元。其餘的都變成了現金，當然，我們出售的 4500 萬美元中，大約賺了 54 萬美元。年化平均預計收益為 140 萬美元，或者您可能會想到每季 35 萬美元。因此，如果您計算一下，NIM 增幅約為 2 個基點。

Yes. Okay.

是的。好的。

And we are considering doing more, we're going to watch the market and be selective. We did it. We could do this again. We could do more also depending on how we're feeling about, where the market is at.

我們正在考慮採取更多措施，我們將觀察市場並進行選擇性。我們做到了。我們可以再做一次。我們還可以根據我們的感受和市場狀況做更多的事情。

Okay. And the yield on the securities sold, I can back into it, but just to make it easy on us?

好的。所售證券的收益率，我可以收回，但只是為了讓我們輕鬆一點？

[$246,000].

[246,000 美元]。

Okay. And then shifting gears to deposits. It looks like deposits were up in the region, where you hire the bankers last year. Just -- can you give us an update on that front? I assume none of that's brokered related? Is it all core?

好的。然後轉向存款。去年你僱用銀行家的地區的存款似乎有所增加。只是——你能給我們介紹一下這方面的最新情況嗎？我想這一切都與經紀人無關？都是核心嗎？

And then, again, maybe an update on what you're seeing in that Portland market with that First Republic branch that's closed.

然後，再一次，也許是你在波特蘭市場看到的第一共和國分店關閉的最新情況。

Sure. Matthew, it's Bryan. And you see it on Slide 10, the deposits were up about $73 million, since the start of the year. So that's about a 13% growth rate versus the bank wide, we're down about 9%. And if you look at the chart above on Slide 10 and the Seattle MSA, we're actually down a little bit more 15%, just due to the amount of excess deposits some of our customers had in that market.

當然。馬修，是布萊恩。您可以在幻燈片 10 上看到，自年初以來存款增加了約 7,300 萬美元。因此，與整個銀行相比，成長率約為 13%，我們下降了約 9%。如果您查看上面投影片 10 和西雅圖 MSA 的圖表，您會發現我們實際上下降了 15% 以上，這只是由於我們的一些客戶在該市場擁有超額存款。

So -- we are seeing disruption we're seeing benefit from benefit as you're seeing here. And it's not just from the new team, we're also seeing it positively benefit our other branches and other commercial teams in the market. And then the outlook is pretty favorable as well. I mentioned the pipeline numbers in my comments. And a significant portion of both the loan and deposit pipelines are coming from our new teams. It's about 38% of the loan pipeline and then it's actually a little over 40% of the deposit pipeline.

因此，我們看到了顛覆，我們也看到了受益，正如您在這裡看到的那樣。這不僅來自新團隊，我們還看到它為我們的其他分支機構和市場上的其他商業團隊帶來了積極的好處。而且前景也相當樂觀。我在評論中提到了管道數量。貸款和存款管道的很大一部分來自我們的新團隊。它大約佔貸款管道的 38%，實際上略高於存款管道的 40%。

So we're pleased with the outlook as well as the performance, and we are seeing disruption in that market from, as you mentioned, First Republic and the Columbia and Umpqua combo. And I'd also add, which I've said before, really the customers are coming from a variety of different spots, having the sales force down there without a portfolio out calling. Obviously, we're getting a lot of strong opportunities. Again, not just the new team, but all of our teams and bankers in that market.

因此，我們對前景和業績感到滿意，正如您所提到的，第一共和國以及哥倫比亞和安普誇組合對該市場造成了乾擾。我還要補充一點，正如我之前所說，客戶實際上來自各個不同的地方，銷售人員在那裡，而沒有投資組合出面。顯然，我們獲得了很多強大的機會。再說一遍，不僅僅是新團隊，還有我們在該市場的所有團隊和銀行家。

Okay. Great. And shifting to expenses, Don. You have an updated outlook on the run rate of non-interest expense is a little bit lighter than your low $42 million guide coming out of last quarter. I'm just curious what your thoughts are on for 4Q?

好的。偉大的。轉向開支，唐。您對非利息支出運作率的最新展望比上個季度 4,200 萬美元的低指導值要輕一些。我只是好奇你對第四季有何看法？

Yes, we had a little bit of benefit from things happened just kind of miscellaneous things for the quarter that kind of helped us out. I would say, it kind of -- we are managing FTE levels to such that I think probably our run rate would have been like 41.5% type in that range.

是的，我們從本季發生的各種事情中獲得了一些好處，這些事情對我們有幫助。我想說，我們正在管理 FTE 水平，我認為我們的運行率可能會在該範圍內達到 41.5% 的水平。

Now I will also say that we are looking at various initiatives on the expense side and we'd talked about expense management initiatives. So even though that's probably a decent run rate, we are -- we could potentially have higher expenses in a short -- like, possibly in Q4 or Q1 of next year as we review things like contracts, renegotiate contracts or even we could even exit contracts and take some hits upfront that we feel is going to -- we're not getting value and we're going to have savings going forward. So there's a chance that we may see higher expenses in Q4. But if we do, we'll have benefits from it in future quarters.

現在我還要說，我們正在研究費用方面的各種舉措，並且我們討論了費用管理舉措。因此，儘管這可能是一個不錯的運行率，但我們可能會在短期內產生更高的費用，例如可能在明年第四季度或第一季度，因為我們會審查合同、重新談判合同，甚至我們甚至可能退出合約並預先承受一些我們認為會發生的打擊——我們沒有獲得價值，而且我們將在未來節省開支。因此，我們有可能在第四季度看到更高的支出。但如果我們這樣做，我們將在未來幾季從中受益。

Okay. Great. And then last one for me, just on office CRE. Can you give us the magnitude or quantify the reserve associated with that portfolio at this stage? I know criticized were down a little bit this quarter to $21 million. But just the reserve you have against that portfolio.

好的。偉大的。最後一個是我的，就在 CRE 辦公室。您能否告訴我們現階段與該投資組合相關的儲備的規模或量化？我知道本季受到批評的金額略有下降，降至 2,100 萬美元。但只是針對該投資組合的儲備。

And then if you're seeing any differences or any weakness, I should say, in kind of the suburban office segment, considering we heard someone last night call out 2 nonperformers in suburban office in Southern California, totally different market, obviously.

然後，如果您看到任何差異或任何弱點，我應該說，在郊區辦公室領域，考慮到我們昨晚聽到有人指出南加州郊區辦公室的兩名表現不佳者，顯然是完全不同的市場。

Yes, Matthew, this is Tony. I can take the first part and then Don has the actual reserve number against the office portfolio. But we haven't seen a lot of weakness in our suburban office market. We continue to watch it closely, but nothing's really materialize from that standpoint. So not really much to add to my comments in that area.

是的，馬修，這是東尼。我可以拿第一部分，然後唐就可以得到辦公室投資組合的實際儲備數。但我們並沒有看到郊區辦公室市場出現太多疲軟。我們繼續密切關注，但從這個角度來看，什麼都沒有真正實現。因此，我在該領域的評論沒什麼好補充的。

Yes. I'll just follow-up. We don't have any individually evaluated loans on the office side. But I think the percentage -- overall percentage is 1.1%, the percentage on the office loans is around 1.56%, I believe, percent of the allowance. So as you -- so I guess you can calculate the number. If we have the numbers. I don't have the exact number, but we do disclose how many office loans we have, so you can kind of figure that out.

是的。我就跟進一下吧。我們在辦公室方面沒有任何單獨評估的貸款。但我認為百分比——總體百分比是 1.1%，辦公室貸款的百分比約為 1.56%，我認為是津貼的百分比。所以我想你可以計算出這個數字。如果我們有數字的話。我沒有確切的數字，但我們確實披露了我們有多少辦公室貸款，所以你可以計算出來。

We now have Jeff Rulis of D.A. Davidson.

現在我們有地方檢察官傑夫魯利斯 (Jeff Rulis)。戴維森。

Jeff, maybe a question for you. I'm just checking in on capital. You've got CET1 close to 13%, total capital over 14%. You rattled through the TCE number. I guess, are there some in-house comfortability levels that you've exceeded at this point? And just -- I mean, frankly, those levels haven't changed much over the last year. Just trying to get a feel for -- if you want to inch those higher or can we think about -- you want to be proactive, when the time is right type of thing with M&A.

傑夫，也許有個問題想問你。我只是在檢查資本。你的CET1接近13%，總資本超過14%。你喋喋不休地念著 TCE 數字。我想，目前您是否已經超越了一些內部舒適度等級？坦白說，我的意思是，這些水平在去年沒有太大變化。只是想感受一下——如果你想提高這些水平，或者我們可以考慮一下——你想在時機成熟時採取積極主動的併購方式。

Thanks, Jeff. Don, I think that's a good question for you.

謝謝，傑夫。唐，我認為這對你來說是個好問題。

Okay. Yes, as far as our capital levels, we are comfortable with our capital levels. Obviously, with the rate environment, the TCE ratio is probably lower than or ideal, but then we'll -- assuming rates stay the same or don't go up much, or we will see that come back into capital over a certain time period.

好的。是的，就我們的資本水準而言，我們對我們的資本水準感到滿意。顯然，在利率環境下，TCE 比率可能低於或理想，但我們會——假設利率保持不變或不會上升太多，或者我們會看到它在一段時間內重新回到資本中。

And then as far as -- we're using our capital for over -- we obviously are looking to grow. We may do some trades like we mentioned on the loss trade was a smaller one. We could do a bigger one, but that wouldn't impact TCE so much, it would impact regulatory capital. But we're comfortable with that. I don't think we necessarily have a large overabundance of capital. We did a few buybacks again in Q3, about $150 million, I think, or $150,000, sorry, of shares repurchased. We could continue to pick at that also. We don't have any plans to do any large-scale buybacks at this point.

然後就我們的資本使用而言，我們顯然正在尋求成長。我們可能會進行一些交易，就像我們在損失交易中提到的那樣，損失較小。我們可以做一個更大的項目，但這不會對 TCE 產生太大影響，反而會影響監管資本。但我們對此感到滿意。我認為我們的資本不一定太多。我們在第三季再次進行了幾次回購，我認為大約是 1.5 億美元，或者抱歉，回購了 15 萬美元的股票。我們也可以繼續選擇這一點。目前我們沒有任何計劃進行任何大規模回購。

Okay. It doesn't sound like you're uncomfortable on the high side to really deploy that. But -- okay. Appreciate it.

好的。聽起來你並沒有對真正部署它感到不舒服。但是——好吧。欣賞它。

If our regulatory capital start exceeding 10% and we might certainly would be like our leverage ratio, we probably want to keep that under 10% in the current economic environment just because I think you start getting over 10% and then we may not gain the value of that. But right now, I think we're in the high 9s. So I think we're fine.

如果我們的監管資本開始超過10%，我們肯定會像我們的槓桿率一樣，在當前的經濟環境下，我們可能希望將其保持在10% 以下，因為我認為你開始超過10%，然後我們可能無法獲得的價值。但現在，我認為我們處於前9位。所以我認為我們很好。

Okay. And then maybe, Tony, just on the -- I know this is a squishy question in terms of reserve to loans and any guideline there. But that continues to lift as a percent of loans and you've been in a net recovery positions for over 2 years now. I know those are specific credits, but just the thought of -- if you're looking at low single-digit loan growth in the short run, your thoughts on the reserve. Do we kind of hold steady or it continue to lift up as we've seen it?

好的。東尼，也許，我知道，就貸款準備金和任何指導方針而言，這是一個棘手的問題。但這比例在貸款中所佔的比例持續上升，而且您已經處於淨回收狀態已有兩年多了。我知道這些是特定的信貸，但只是想想看——如果你考慮的是短期內低個位數的貸款成長，你對準備金的看法。我們是保持穩定還是像我們所看到的那樣繼續上升？

Yes. Don, I don't know if you want to take that with the -- on the ACL?

是的。 Don，我不知道你是否想在 ACL 上加上 -- ？

I think this holds steady. We don't have any plans to really change that. It's been pretty consistent. We've already considered all of -- looking forward potential recessions is in the model. So again, we're -- our underwriting is such that as you can see, we tend to always kind of outperform what we're putting on our criticized loan portfolio and with the actual amount of charge-offs. So I think it pops off the change is the mix of loans and the amount of loans. Did that answer your question, Jeff?

我認為這一點保持穩定。我們沒有任何計劃來真正改變這一點。一直很一致。我們已經考慮了模型中所有的潛在衰退。再說一次，我們的承銷是這樣的，正如你所看到的，我們往往總是比我們在受到批評的貸款組合和實際沖銷金額上的表現更好。所以我認為最突出的變化是貸款的組合和貸款金額。這回答了你的問題嗎，傑夫？

And then -- yes. Yes. I know that it's not black and white necessarily, but just trying to get a gut feel of where that is. It sounds like you're pretty comfortable with the level and -- got you.

然後——是的。是的。我知道這不一定是黑白分明的，但只是想直觀地了解它在哪裡。聽起來你對這個級別很滿意——明白了。

One housekeeping, Don, while I have you -- was there an interest recovery that added to margin in the quarter the 347, was there a bump there at all, that it flows through there?

一個管家，Don，當我有你的時候 - 是否有利息復甦增加了 347 季度的利潤率，是否有任何波動，它流經那裡？

I don't believe so. We had anything that ballooned the loan yields at all, if that's what you're comfort talking about.

我不相信是這樣。如果您願意談論的話，我們有任何可以提高貸款收益率的東西。

Yes. From the credit side.

是的。從信用方面看。

I don't think we had any large income recoveries on that.

我不認為我們在這方面有任何大的收入恢復。

Okay. And Don, did you mention that expense growth rate in '24 or expectations? I know that you kind of walked through the near term around 41.5% or a little higher in the short term, it did take exiting contracts or something. But is that -- I kind of -- if I look at the balance of '24, is it right to say that's still going to be pretty managed growth, if at all, going to keep that growth rate pretty down, pretty low?

好的。 Don，您是否提到 24 年的費用成長率或預期？我知道你在短期內經歷了 41.5% 左右或更高一點的情況，這確實需要退出合約或其他東西。但是，我認為，如果我看看 24 年的餘額，是否可以說這仍然是一個相當可控的增長，如果有的話，會保持增長率相當低，相當低嗎？

Yes. Obviously, in this rate environment, we're looking at all aspects to protect overall profitability. So I mentioned and maybe 41.5%, I have to be a little more specific, may I meant to more say, mid-41s, right, for next quarter. But again, we are -- I would say some things are lower right now because of -- because profitability is down this quarter compared to what was expected.

是的。顯然，在這種利率環境下，我們正在考慮各個方面以保護整體獲利能力。所以我提到，也許是 41.5%，我必須說得更具體一點，我的意思是更多地說，41 年代中期，對，下個季度。但同樣，我們 - 我想說現在有些事情較低是因為 - 因為本季的獲利能力與預期相比有所下降。

So like, again, incentive comp accruals are down. If they go back to normalized levels, I would expect more of a $42 million run rate, that's kind of ex any tactics that we are in the process of looking at, but I would say the run rate were probably [prompt in] $42 million a quarter starting in Q1, if we don't do anything else regarding that.

同樣，應計激勵補償也下降了。如果他們回到正常化水平，我預計運行率將達到 4200 萬美元，這與我們正在研究的任何策略不同，但我想說運行率可能是 4200 萬美元如果我們不做任何其他事情的話，從第一季開始的一個季度。

We now have David Feaster of Raymond James.

現在我們有雷蒙德詹姆斯的大衛費斯特。

Maybe just starting on the pipeline and the origination and loan growth side. Obviously, the pipeline decline -- sounds like it's kind of a combination of maybe less appetite for credit from your standpoint, especially on the NOOCRE side, as well as weaker demand.

也許才剛開始管道、發起和貸款成長方面。顯然，管道數量的下降——從你的角度來看，這聽起來像是對信貸的興趣減弱，尤其是在 NOOCRE 方面，以及需求疲軟的結合。

I'm just curious, where are you still seeing good opportunities? What segments can still drive growth here and can pencil out even at higher rates? And then just how new loan yields are trending?

我只是好奇，你還在哪裡看到好的機會？哪些細分市場仍然可以推動這裡的成長，甚至可以以更高的速度退出？那麼新貸款收益率的趨勢如何？

Bryan, do you want to take that one?

布萊恩，你想買那個嗎？

Yes. Sure, David. We have been -- in the spring, we saw a big increase in real estate requests come in as other banks were pulling back on that category. And then concurrently, our prepay levels have come way down from what we had the last few years.

是的。當然，大衛。今年春天，我們看到房地產請求大幅增加，因為其他銀行正在撤回該類別。同時，我們的預付水平比過去幾年下降了很多。

So really, what we've been doing is managing our concentration levels has been the primary driver behind the heavy filtering we've done, not to get too high in terms of our construction concentrations and our investor CRE concentration. So that was really the primary reason. The rates at the time were also a consideration in the spring, just as the new yields really hadn't adjusted.

事實上，我們一直在做的就是管理我們的集中度，這是我們進行嚴格過濾的主要驅動力，而不是讓我們的建築集中度和投資者商業房地產集中度過高。所以確實是主要原因。當時的利率也是春季的考慮因素，就像新的收益率確實沒有調整一樣。

If you fast forward to today, the pricing is good on the investor real estate on the request that we're seeing coming in. We're just feeling -- so we're still fielding them, but at a much lower level. So it's strong in that category. C&I activity, we're very focused on that. We've got a nice customer base and prospect base we've been going after. But the pricing is pretty competitive in that space, obviously, because of the deposit aspects of those relationships.

如果你快進到今天，根據我們看到的要求，投資者房地產的定價很好。我們只是感覺 - 所以我們仍在部署它們，但水平要低得多。所以它在這個類別中很強大。 C&I 活動，我們非常關注這一點。我們擁有我們一直在追求的良好客戶群和潛在客戶群。但顯然，由於這些關係的存款方面，該領域的定價相當有競爭力。

And in many cases, the customers we're looking at have very significant deposit levels. So from that standpoint, it makes sense if the loan pricing is competitive. And then overall, just with rates up customers that have been in business for 15 years or 20 years. They've experienced these rate levels in their business history and are reacting as strongly as some of the business customers that have been in business for maybe the last 10 years or 15 that haven't experienced rate with these levels. So they're maybe pausing a little bit more on new projects.

在許多情況下，我們關注的客戶都有非常高的存款水準。因此，從這個角度來看，貸款定價是否具有競爭力是有意義的。整體而言，只需對經營 15 年或 20 年的客戶進行評級即可。他們在其業務歷史中經歷過這些費率水平，並且與一些可能在過去 10 年或 15 年沒有經歷過這些費率水平的企業客戶一樣反應強烈。因此，他們可能會在新項目上暫停更多時間。

In general, the health of the local economy and the customer base is really good. Liquidity levels are strong. We are seeing a bit more use of cash to expand versus using gas in part because of the pricing on new loans. Again, not a surprise with the liquidity levels that the customers might use more liquidity first.

總體而言，當地經濟和客戶群的健康狀況確實良好。流動性水平強勁。與使用天然氣相比，我們看到更多地使用現金來擴張，部分原因是新貸款的定價。同樣，客戶可能首先使用更多流動性的流動性水平並不令人意外。

But overall, the economy is good. We're just -- we are seeing a dip in demand, again, primarily based on rates. On the nonowner side, that's been our own choice to filter that hard. The volume has gone down in the market. But we could take a larger share if we chose to.

但整體而言，經濟狀況良好。我們只是——我們再次看到需求下降，主要是基於利率。在非所有者方面，我們自己選擇嚴格過濾。市場上的成交量有所下降。但如果我們選擇的話，我們可以佔據更大的份額。

And then you also asked on new rates, and I did mention those, the total for the total portfolio of new deals closed in the quarter, the average rate was 6.54%, which is up 27 basis points from last quarter.

然後你也詢問了新利率，我確實提到了這些，本季完成的新交易總投資組合的平均利率為 6.54%，比上季上升了 27 個基點。

Okay. That's great color. And then maybe touching on the other side of the coin on the credit front. I mean, credit is phenomenal. Non-accruals are down. You've got the large ag recovery I'm just curious, we already touched on office, but maybe more broadly, what are you seeing on the credit front? I mean, we're starting to see some cracks and normalization in the industry. It can't get better than 0.

好的。那顏色真棒。然後也許會觸及硬幣的另一面——信貸方面。我的意思是，信用是驚人的。非應計費用下降。我只是很好奇，你已經看到了農業的大幅復甦，我們已經談到了辦公室，但也許更廣泛地說，你在信貸方面看到了什麼？我的意思是，我們開始看到該行業出現一些裂痕和正常化。不可能比 0 更好。

I'm just curious, what are you watching? What are you seeing? And then maybe if you could talk a bit about what drove kind of that increase in classified balances in the quarter?

我只是好奇，你在看什麼？你看到什麼了？然後，也許您可以談談是什麼推動了本季度分類餘額的增長？

Tony, do you want to take that?

東尼，你想接受這個嗎？

Yes. Yes, sure, David. Generally, credit has been pretty benign now for quite a few quarters, as you mentioned. And I think we're still in a little bit of a credit bubble. And our numbers were a bit impacted by the recovery on the large deal this quarter. But it still even -- if you netted that out, it would be lower than -- much lower than historical for NCOs. And again, non-accruals remained very low.

是的。是的，當然，大衛。一般來說，正如您所提到的，信貸在好幾個季度一直相當良性。我認為我們仍然處於信貸泡沫之中。我們的數據受到本季大宗交易復甦的一些影響。但它仍然甚至——如果你把它算出來的話，它會比——遠低於士官的歷史水平。同樣，非應計費用仍然非常低。

So I think we're still in that what I would call a very slow move back to a more normal credit environment. It's just been slower than I expected over the last several quarters. So nothing really from a jumping out as to the small -- the little increase in the classified numbers. It's just more just movement of credits between grades, and there was nothing really that jumped out. So we're continuing to watch everything closely. But again, our total criticized numbers have stayed pretty stable now for quite some time.

因此，我認為我們仍處於緩慢恢復正常信用環境的狀態。過去幾季的成長速度比我預期的要慢。因此，從小事上跳出來實際上並沒有什麼意義——機密數字的小幅增加。這只是不同年級之間學分的變動，並沒有什麼真正的改變。因此，我們將繼續密切關註一切。但同樣，我們的批評總數在相當長一段時間內保持相當穩定。

And while there might be a little bit more pressure as we go forward, we've got quite a bit of room still to move to get back to what I would call a more normal credit environment. I will say there's probably a little bit more weakness in the C&I space right now, just -- and I don't know really what to attribute that to, but I think it's just maybe the stimulus money that's worked its way through the economy and isn't really there to kind of prop some of those operating companies up. So we're seeing a little bit more stress there, but nothing of any significance that's very alarming.

儘管我們前進的過程中可能會面臨更大的壓力，但我們仍有相當大的空間可以恢復到我所說的更正常的信貸環境。我想說的是，現在工商業領域可能會出現更多的疲軟，我真的不知道將其歸因於什麼，但我認為這可能只是刺激資金在經濟中發揮了作用，並不能真正支撐一些運營公司。因此，我們看到那裡的壓力更大了一些，但沒有任何令人擔憂的意義。

Got it. And then maybe just touching on kind of the implications. It seems like we're going to be on a higher for longer environment, at least that's kind of more of the consensus, it seems like. Maybe just on the margin and the NII trajectory, I guess, as we look out to next year, I guess, if rates do stay higher and funding pressures persist, talk about some margin compression. But I guess would you expect that in the upcoming quarter?

知道了。然後也許只是觸及一些影響。看起來我們將處於一個更高、更長期的環境中，至少這似乎是更多的共識。我想，也許只是在邊際和NII軌跡上，當我們展望明年時，我想，如果利率確實保持在較高水平並且資金壓力持續存在，那麼我們會討論一些邊際壓縮。但我想您會期望在下個季度出現這種情況嗎？

I mean, I guess, would you expect that to persist kind of in the first half of the year? And I guess, just kind of how you think about the margin trajectory and kind of opportunities for expansion over time in a higher for longer environment.

我的意思是，我想，您預計這種情況會在今年上半年持續下去嗎？我想，這就是你如何看待利潤軌跡以及在更高、更長期的環境中隨著時間的推移擴張的機會。

Yes. Sure. Yes, I think that we're going to continue to have some pressure as again, you mentioned how September was lower than NIM than for the quarter. But again, I think, that the pressure on deposits is really the factor. Again, our -- the costs there are -- will continue to go up. How quickly is -- it seems like we go in kind of waves, where we get a lot of exception requests and in other times, there's less so.

是的。當然。是的，我認為我們將繼續面臨一些壓力，正如您所提到的，9 月的淨利差 (NIM) 低於本季的水平。但我再次認為，存款壓力才是真正的因素。同樣，我們的成本將繼續上升。速度有多快——看起來我們就像一波又一波地前進，我們收到了很多例外請求，而在其他時候，這樣的情況就更少了。

But with the rates higher and especially if the Fed increases another time, where there's a lot out there on the short end of the curve, that could cause more problems and hurt us at least in the short run. For rates higher longer, at some point, the increases on the deposit side will subside and our assets will reprice and we'll hit an equilibrium. But at this point, we're probably looking maybe the middle of next year. Maybe it might happen Q2, but might not happen till Q3 at this point.

但隨著利率走高，尤其是如果聯準會再次升息，曲線的短期端就會出現很多問題，這可能會導致更多問題，至少在短期內損害我們的利益。對於利率持續較高的時間，在某個時刻，存款方面的成長將會消退，我們的資產將重新定價，我們將達到均衡。但目前來看，我們可能會期待明年年中。也許它可能會發生在第二季度，但可能要到第三季度才會發生。

We now have Andrew Terrell of Stephens.

我們現在有來自史蒂芬斯的安德魯·特雷爾。

I wanted to go back to the securities repositioning transaction. I appreciate all the color you guys provided there. As you're contemplating similar transactions moving forward, I know the one that took place this quarter was, I think you mentioned a 1.4-year earn back. Is that the kind of threshold you're looking to manage any incremental repositioning trades around, or would you be willing to extend to, call it, 2 to 3 years? Just want to get your thoughts there.

我想回到證券重新定位交易。我很欣賞你們提供的所有顏色。當您考慮推進類似交易時，我知道本季發生的交易是，我認為您提到了 1.4 年的獲利回報。這是您希望管理任何增量重新定位交易的門檻嗎？或者您願意延長至（稱之為）2 至 3 年嗎？只是想了解您的想法。

Yes. At this point, 1.4 is a very good earn-back period. I don't -- if we did a larger scale, I don't necessarily see that probably occurring, I imagine it would go over -- maybe go over slightly over 2 years. We would definitely want to keep it under 3 years and even 2.5 would be preferable.

是的。此時1.4是一個非常好的回本期。我不認為——如果我們規模更大，我不一定會看到這種情況發生，我想它會過去——也許會稍微超過兩年。我們肯定希望將其保持在 3 年以內，甚至 2.5 年會更好。

Yes. Okay. 1.4% is definitely good...

是的。好的。 1.4%絕對不錯了...

Yes, we'll continue to review this. And again, a lot will depend on really the rate environment and right now, of course, the rates have been up so far this quarter, and which makes sales a little more unchallenging.

是的，我們將繼續審查這一點。再說一遍，很大程度上取決於實際的利率環境，當然，目前本季到目前為止，利率已經上漲，這使得銷售變得不再具有挑戰性。

Yes. Understood. Okay. And then on the time deposit, portfolio. It looks like about 1/3 of the growth came from brokered deposits. Can you just talk about the cost differential between the brokered deposit growth and the core customer time deposit growth?

是的。明白了。好的。然後是定期存款、投資組合。看起來大約 1/3 的成長來自經紀存款。能否簡單談談經紀存款成長與核心客戶定期存款成長之間的成本差異？

And on the core customer side, where are you pricing new deposits at today? And how does that compare to competitors in the market?

在核心客戶方面，你們今天對新存款的定價是多少？與市場上的競爭對手相比如何？

Sure. The Brokered, I think, came in around [$5.4 million]. We did those in July. So that had a -- we've pretty much got the whole impact for the quarter there on the Brokered. Again, brokered is just another way to manage the balance sheet. It's not -- they're not core deposits. They're not the customer. So we just use this one more instead of using borrowings, we can use Brokered in that way.

當然。我認為《Brokered》的收入約為 [540 萬美元]。我們在七月做了這些。因此，我們幾乎了解了該季度對經紀業務的整體影響。同樣，經紀只是管理資產負債表的另一種方式。它們不是核心存款。他們不是顧客。所以我們只是再使用這個而不是使用借用，我們可以透過這種方式使用 Brokered。

The new deposits coming on, I think a lot of them are in the 4% to almost 5% at times. We have gone up to 5% and even the low-5s periodically for new CDs. But I think on average, it's probably in the 4s for the -- for our customer CDs.

新的存款即將到來，我認為其中許多有時都在 4% 到近 5% 之間。對於新 CD，我們會定期提高 5% 甚至低 5%。但我認為平均而言，對於我們的客戶 CD 來說，它可能在 4 秒內。

Okay. Got it. And if I could ask something, Bryan, on the new origination yields for the quarter, you said 6.54 was the new origination yield all in?

好的。知道了。 Bryan，如果我可以問一些關於本季新發行收益率的問題，您說 6.54 是新發行收益率的全部嗎？

Yes. So on the all loans, it was 6.54%.

是的。因此，在所有貸款中，該利率為 6.54%。

Okay. As I look back to origination yields a year ago, I've got written down 4.89% in 3Q of last year. And we've obviously gotten us 160 basis point pickup. We've obviously gotten a lot more than that in terms of short-term rate increases.

好的。當我回顧一年前的初始收益率時，我在去年第三季減記了 4.89%。顯然我們已經獲得了 160 個基點的提升。就短期升息而言，我們顯然得到了更多的收穫。

I'm just curious, is there anything influencing like -- or could you talk about the range within that new origination yield? And is there anything such as old commitments that are funding up at lower rates. Anything that's influencing that number lower? And how you would expect new origination yields to progress over the next 12 or 6 months?

我只是很好奇，是否有什麼因素會影響——或者你能談談新的起始收益率的範圍嗎？是否有諸如舊承諾之類的東西以較低的利率籌集資金。有什麼因素會影響這個數字的降低嗎？您預計未來 12 或 6 個月新的發行收益率將如何發展？

Yes. I mean, the range went from kind of the 6% range all the way up to 8.5%, just kind of looking at the full quarterly averages. So anything that's tied to a variable index prime or so far, you're getting strong rates. If you look at the renewal percentage, the rates on the renewals were over 8% for the quarter. Where we're really seeing strong pressures, anything C&I or more owner occupied or anything kind of business related and that's because Heritage and our competitors are really focused on deposits and that commercial category. So it's been super competitive in that space -- the investor real estate or the construction less so.

是的。我的意思是，這個範圍從 6% 一直到 8.5%，只是看整個季度的平均值。因此，任何與可變指數質數相關的東西或到目前為止，您都會獲得強勁的利率。如果您查看續訂百分比，您會發現該季度的續訂率超過 8%。我們確實看到了巨大的壓力，任何工商業或更多業主佔用的東西或任何與業務相關的東西，那是因為 Heritage 和我們的競爭對手真正專注於存款和商業類別。因此，這個領域的競爭非常激烈——投資者的房地產或建築業的競爭就沒那麼激烈了。

Your question on -- did we have a carryover of commitments we made last year and the early part of the year, yes. And we've largely worked through that. So we expect to continue to see the pricing move up over the next few quarters, again, both spreads and indexes benefiting us at this point.

你的問題是──我們是否延續了去年和今年年初所做的承諾，是的。我們已經基本上解決了這個問題。因此，我們預計未來幾季價格將繼續上漲，此時點差和指數都會使我們受益。

Okay. That's very helpful. I appreciate the color. If I could sneak one more in. Just -- do you have the total dollar amount of syndicated credits in the portfolio?

好的。這非常有幫助。我很欣賞它的顏色。如果我能再偷偷溜進去一次就好了。只是——你有投資組合中銀團信貸的總金額嗎？

Yes, Andrew, the syndicated credits, SNCs is $75 million in outstandings at quarter end, which is about 1.75% of total loans. So it's a fairly small portfolio that we play in a pretty small portion of that space. Those deals that are higher rated and lower levered is really where we really focus our efforts.

是的，安德魯，銀團信貸、SNC 截至季末的未償餘額為 7,500 萬美元，約佔貸款總額的 1.75%。因此，這是一個相當小的投資組合，我們在該空間的一小部分中發揮作用。那些評價較高、槓桿較低的交易才是我們真正關注的重點。

Andrew, real quick, just a follow-up. I did look up the originator or the new CD rates for Q3 and it was around [$450 million].

安德魯，很快，只是後續行動。我確實查了一下第三季的發起者或新的 CD 利率，大約是 [4.5 億美元]。

[$450 million]. Got it.

[4.5億美元]。知道了。

Brika, do we have any other call, any other questions?

Brika，我們還有其他電話嗎？還有其他問題嗎？

We now have Kelly Motta from KBW.

現在我們邀請了來自 KBW 的凱利·莫塔 (Kelly Motta)。

Most of my questions have been asked and answered at this stage. But maybe if we could go back to office. Can you remind us how much of that portfolio reprices or comes up for renewal over the next year or 2?

我的大部分問題都在這個階段被提出和回答。但也許我們可以回到辦公室。您能否提醒我們，該投資組合中有多少會在未來一兩年內重新定價或更新？

Tony, I think you have some good data on that, with regard to...

托尼，我認為你有一些很好的數據，關於...

I do. Yes. I mean I don't have it over the next year, but of that, Kelly, of that portfolio, that's about $563 million, which includes owner and non-owner occupied. If I look at the amount of that, it's actually over the next 3 years is what I haven't done, may have something a little more specific. But I've got about a little over $70 million of that portfolio. So over a 3-year period, we feel like that's a pretty low amount of maturing loans. Now that doesn't include some repricing that might be in there, too. So...

我願意。是的。我的意思是我明年就沒有了，但凱利，這個投資組合中大約有 5.63 億美元，其中包括所有者和非所有者佔用的資金。如果我看一下數量，實際上是未來三年我沒有做過的事情，可能會有一些更具體的事情。但我的投資組合中大約有 7000 萬美元多一點。因此，在三年期間，我們認為到期貸款的數量相當低。現在這還不包括其中可能存在的一些重新定價。所以...

Got it. That's really helpful, Tony. And then, in your prepared remarks, I think one area that you're sort of looking at is expense control. Just wondering how you're balancing that with what you're viewing as opportunities to benefit from the dislocation in your markets and the ability to add teams. Like, how would you kind of stack rank those priorities as we sit here at this stage of the cycle?

知道了。這真的很有幫助，托尼。然後，在您準備好的發言中，我認為您關注的一個領域是費用控制。只是想知道您如何平衡這一點與您認為從市場混亂中受益的機會以及增加團隊的能力。例如，當我們處於週期的這個階段時，您會如何對這些優先順序進行排序？

Well, Kelly, I think it's that time of year, where all of us are starting to plan for the new year. And we've said many times in the past that expenses is just one thing that we can control. We're always watching expenses, particularly comp and benefits for one because it's one of our biggest categories. We'll continue to focus on that as we plan for '24. I think there's pockets with inside the organization that we can spend some time on that's in our control. Don referenced maybe looking at contracts, whether it's renewing, renegotiating or maybe releasing them all together is one thing we can do.

好吧，凱利，我想現在是一年中的這個時候，我們所有人都開始計劃新的一年。我們過去多次說過，費用只是我們可以控制的一件事。我們一直在關注開支，尤其是薪資和福利，因為這是我們最大的類別之一。我們將在 24 世紀的計劃中繼續關注這一點。我認為組織內部有一些我們可以花一些時間在我們控制範圍內的地方。唐提到也許會查看合同，無論是續約、重新談判還是一起釋放它們都是我們可以做的一件事。

But there is an underlying belief on the part of the leadership and the Board, who are in full support of this line of thinking that first choice, when it comes to acquiring would be teams in our footprint. And we've done that many times. While we're really focused on maintaining or controlling our expenses as they stand today. I don't think that, that would stop us from pursuing the right teams in the right locations that they presented themselves.

但領導階層和董事會有一個基本信念，他們完全支持這種思路，即收購時的首選將是我們足跡中的團隊。我們已經這樣做過很多次了。雖然我們真正專注於維持或控制我們目前的開支。我不認為這會阻止我們在合適的地點尋找合適的團隊。

We are also very well aware of how much of an impact the 2 team projects that we just brought on over the last 18 months has had on our expense base, but we can kind of carve that out and show how that's impacting us. For example, we've kind of gone through the exercise of saying, okay, assuming that these teams that we brought on are fully functioning today as opposed to as we model 3 years out, that's about 4 points on our efficiency ratio, which gives us a little bit of relief as we -- as we monitor our metrics.

我們也非常清楚過去 18 個月裡我們剛剛實施的 2 個團隊專案對我們的支出基礎產生了多大影響，但我們可以將其弄清楚並展示它如何影響我們。例如，我們已經經歷過這樣的練習：好吧，假設我們引入的這些團隊今天能夠充分發揮作用，而不是我們模型中的 3 年後，那麼我們的效率比大約為 4 個點，這給出了當我們監控指標時，我們鬆了一口氣。

And I think that we are now seeing the beauty of those teams bringing on, as Bryan walked through the benefits, the deposits and the loans that we're bringing on and fleshing out those geographic locations, I think it's a great way for us to grow the organization. M&A is close behind, but we all know M&A is pretty rough right now and probably not front and center for us in the next, I don't know, 6 months at least.

我認為我們現在看到了這些團隊帶來的美妙之處，布萊恩介紹了我們帶來的好處、存款和貸款，並充實了這些地理位置，我認為這對我們來說是一個很好的方式發展組織。併購緊隨其後，但我們都知道併購目前相當艱難，並且可能不會成為我們接下來（我不知道，至少 6 個月）的前沿和中心。

We now have Tim Coffey of Janney.

我們現在有詹尼的提姆·科菲。

Don, I had a question about -- kind of the NII outlook. Is it a reasonable expectation to think that it might be flat here for a couple of quarters, even if NIM does compress?

唐，我有一個關於 NII 前景的問題。即使 NIM 確實壓縮，認為它可能在幾個季度內持平是否是一個合理的預期？

Well, I think that a lot will depend on our deposits. Can we -- will the deposits continue to stabilize, can we maintain non-interest-bearing deposits. That's a key because then the margin is -- I think is going to continue, again, it will continue to decrease more slowly, but still decrease some.

嗯，我認為這很大程度上取決於我們的存款。我們能否－存款持續穩定，我們能否維持無利息存款。這是一個關鍵，因為我認為利潤率將會繼續下降，而且會繼續更緩慢地下降，但仍然會下降一些。

So it will be a challenge. I mean, it came down a little bit, and we actually increased our average earning assets for the quarter. I'm not sure that's going to happen every quarter right now. But again, it's so dependent on deposits. I think we might see it continue a little bit of a decline in the NII.

所以這將是一個挑戰。我的意思是，它下降了一點，我們實際上增加了本季的平均獲利資產。我不確定現在每個季度都會發生這種情況。但同樣，它非常依賴存款。我認為我們可能會看到國家資訊基礎設施繼續小幅下降。

Okay. Okay. And since you brought it a little while ago, Don, the request for exception pricing on deposits, the pace of that, has that changed in 3Q relative to 2Q?

好的。好的。唐，自從您不久前提出以來，對存款進行例外定價的要求以及其步伐，相對於第二季度而言，第三季度是否發生了變化？

Unfortunately, no. It's still pretty -- I think the dollar amounts have decreased some, but I think the numbers are still pretty high.

很不幸的是，不行。它仍然很漂亮——我認為美元金額有所減少，但我認為數字仍然相當高。

Okay. And then, Jeff, just -- I want to follow-up on the M&A comments you just made there. So in the third quarter in the Western region, we saw some interesting sophisticatedly structured transactions, right? Where, one, the legal buyer was different from the accounting buyer. And just recently, we saw a take under. Do you think -- thinking creatively about how to structure M&A transactions might unlock the M&A market regardless of the kind of fair value marks all the banks seem to be carrying?

好的。然後，傑夫，我想跟進您剛才發表的併購評論。那麼在西部地區第三季度，我們看到了一些有趣的複雜結構交易，對吧？其中，第一，合法買家與會計買家不同。就在最近，我們看到了一種接管。您是否認為，無論所有銀行似乎都帶有何種公允價值標記，創造性地思考如何建立併購交易可能會解鎖併購市場？

Yes. I think that -- well, we haven't -- those particular deals were not lost on us. We spent a lot of time looking at them, and it sort of opened our eyes to the variety of creative ways of going about these deals that are out there. I think we would certainly consider any kind of structure that makes sense for us to get a deal done. But I just don't see -- our conversations continue as they always have, like keeping close contact with a lot of the organizations that we have admiration for.

是的。我認為——嗯，我們沒有——我們並沒有失去那些特殊的交易。我們花了很多時間研究它們，這讓我們看到了進行這些交易的各種創意方式。我認為我們肯定會考慮任何對我們完成交易有意義的結構。但我就是不明白——我們的對話一如既往地繼續，例如與許多我們欽佩的組織保持密切聯繫。

But I think regardless of what the creative structure is, I just don't think there's deals to be done right now. Historically, I just want to add, historically, the deals we did do were mainly because of retiring CEO without specific succession and the scenarios now are a little different than that. They're not as urgent. So I think a lot of the potential targets are taking their time to decide what they want to do.

但我認為，無論創意結構如何，我認為現在沒有什麼可做的交易。從歷史上看，我只想補充一點，從歷史上看，我們所做的交易主要是因為執行長退休而沒有具體的繼任者，而現在的情況與此略有不同。他們沒那麼緊急。所以我認為很多潛在目標都在花時間決定他們想做什麼。

Thank you. I'd like to turn it back to Jeff Deuel, CEO, for any final remarks.

謝謝。我想請執行長傑夫杜埃爾 (Jeff Deuel) 發表最後的評論。

Perfect. Thank you. We'll wrap up this quarter's call. We thank you for your time and your support and your interest in our ongoing performance, and we look forward to talking with many of you in the next couple of weeks. Take care, and goodbye.

完美的。謝謝。我們將結束本季的電話會議。我們感謝您的時間、支持以及對我們持續表現的興趣，我們期待在接下來的幾週內與您中的許多人交談。保重，再見。

Thank you all for joining. I then confirm that does conclude today's call. Please have a lovely rest of your day, and you may now disconnect your lines.

感謝大家的加入。然後我確認今天的電話會議確實結束了。請度過愉快的一天，現在您可以斷開線路了。