Heritage Financial Corp (HFWA) 2026 Q1 法說會逐字稿

Thank you for standing by. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the Heritage Financial 2026 Q1 earnings call.

感謝您稍候。我叫 Angela，今天將擔任本次電話會議的接線員。此刻，我想歡迎各位參加 Heritage Financial 2026 年第一季財報電話會議。

(Operator Instructions)

(接線員指示)

I would now like to turn the call over to Mr. Bryan McDonald, President and CEO, you may begin.

現在我想把電話交給總裁兼執行長 Bryan McDonald 先生，您可以開始了。

Thank you, Angela. Welcome, and good morning to everyone who called in and those who may listen later. This is Bryan McDonald, CEO of Heritage Financial. Attending with me are Don Hinson, Chief Financial Officer; and Tony Chalfant, Chief Credit Officer.

謝謝你，Angela。歡迎各位，早安，感謝所有撥入的朋友，以及稍後可能收聽的各位。我是 Heritage Financial 的執行長 Bryan McDonald。與我一同出席的有財務長 Don Hinson，以及信貸長 Tony Chalfant。

Our first quarter earnings release went out this morning pre-market, and hopefully you have had the opportunity to review it prior to the call. In addition to the earnings release, 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, loan portfolio, liquidity, and credit quality. We will reference this presentation during the call.

我們第一季財報新聞稿已於今天盤前發布，希望各位在會議前已經有機會先行閱讀。除財報新聞稿外，我們也在公司網站的投資人關係專區上傳了更新版第一季投資人簡報，內容包含我們存款、放款組合、流動性與資產品質的更多細節。我們將在會議中引用這份簡報。

As a reminder, during this call, we may make forward-looking statements, which are subject to economic and other factors. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements are disclosed within the earnings release and the investor presentation. We closed the merger with Olympic Bancorp during the first quarter, better positioning our company for growth in the Puget Sound market. I want to highlight a couple items as we look forward.

提醒各位，本次電話會議中我們可能會發表前瞻性陳述，該等陳述受經濟及其他因素影響。可能導致實際結果與前瞻性陳述所示有重大差異的重要因素，已於財報新聞稿與投資人簡報中揭露。我們已於第一季完成與 Olympic Bancorp 的合併，使公司在普吉特海灣（Puget Sound）市場的成長布局更為有利。展望未來，我想強調幾個事項。

First, as a reminder, we are converting systems in late September and will be carrying higher expenses until after the conversion. Don Hinson will provide additional color on our estimated expense levels post-conversion in a few minutes. Second, we're seeing the expected improvement to our net interest margin resulting from the addition of Olympics' balance sheet and continued asset repricing. We expect the upward trajectory to continue, primarily driven by new loans and repricing within the existing loan portfolio.

第一，提醒各位，我們將於 9 月下旬進行系統轉換，在轉換完成後的一段時間之前，費用將維持在較高水準。Don Hinson 將在幾分鐘後就轉換後的預估費用水準提供更多說明。第二，我們正看到如預期般的淨利差改善，主要來自納入 Olympic 的資產負債表以及持續的資產重定價。我們預期這個上升趨勢將持續，主要由新承作放款以及既有放款組合內的重定價所帶動。

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

接下來我們交給 Don，他將用幾分鐘說明我們的財務結果。

Thank you, Bryan. I'll be reviewing some of the main drivers of our performance for Q1. As I walk through our financial results, unless otherwise noted, all the prior period comparisons will be with the fourth quarter of 2025. I will also be incorporating the impact of the Olympic merger into my comments.

謝謝你，Bryan。我將回顧第一季表現的幾個主要驅動因素。在我說明財務結果時，除非另有說明，所有前期比較皆以 2025 年第四季為基準。我也會把 Olympic 合併的影響納入我的說明。

Starting with the balance sheet. Total loan balances increased $939 million in the first quarter. Loans acquired in the Olympic merger totaled $954 million. Q1 yields in the loan portfolio were 5.73%, which was 19 basis points higher than Q4. The Olympic merger had a significant impact on the yield for the quarter as we brought over their loan portfolio at current market rates. In addition, approximately 6 basis points of the increase was due to the recovery of interest on non-accrual loans. Bryan McDonald will have an update on loan production and loan rates in a few minutes.

先從資產負債表開始。第一季放款總餘額增加 9.39 億美元。在與 Olympic 的合併中取得的放款合計 9.54 億美元。第一季放款組合收益率為 5.73%，較第四季高 19 個基點。本季收益率受到 Olympic 合併的顯著影響，因為我們以當前市場利率承接其放款組合。此外，約有 6 個基點的增幅來自非應計放款利息的回收。Bryan McDonald 將在幾分鐘後更新放款承作情況與放款利率。

Total deposits increased $1.33 billion in Q1. Deposits acquired in the Olympic merger totaled $1.39 billion. The decrease in deposits ex the acquired deposits was partially due to the maturity of $29 million of brokered CDs that were not renewed. The cost of inter-sparing deposits decreased to 1.71% from 1.83% in the prior quarter. This decrease was due partly to the merger, as Olympic had a lower cost deposit, and partly as a result of the Fed rate cuts in Q4, which resulted in lower deposit rates.

第一季存款總額增加 13.3 億美元。在 Olympic 合併中取得的存款合計 13.9 億美元。扣除併購取得存款後的存款下降，部分原因是 2,900 萬美元的經紀存單到期且未續作。計息存款成本由前一季的 1.83% 降至 1.71%。此下降部分來自合併因素（Olympic 的存款成本較低），部分則因聯準會於第四季降息，導致存款利率下調。

Investment balances increased $388 million from the prior quarter, also due to the Olympic merger. Although we have reported that only $312 million was acquired in the merger, a portion of Olympics investment portfolio, as part of a restructuring strategy, was sold prior to the merger date and reinvested subsequent to the merger. The yield on the investment portfolio increased 17 basis points due to acquiring the Olympic portfolio at current market rates.

投資餘額較前一季增加 3.88 億美元，同樣是因 Olympic 合併所致。雖然我們報告在合併中僅取得 3.12 億美元，但 Olympic 投資組合中的一部分，作為重整策略的一環，在合併日前已先行出售，並於合併後再行再投資。投資組合收益率增加 17 個基點，原因是以當前市場利率承接 Olympic 的投資組合。

Moving on to the income statement. Most categories increased from the prior quarter due to the merger. I will cover a few areas of note. In addition to the impact of the earning assets acquired in the merger, net interest income also benefited from an increase in net interest margin.

接著看損益表。由於合併因素，多數科目較前一季增加。我將說明幾個值得注意的部分。除了合併取得的生息資產帶來的影響外，淨利息收入也受惠於淨利差的提升。

The net interest margin increased to 3.96% from 3.72% in the prior quarter and from 3.44% in the first quarter of 2025. The increase was due primarily to the previously mentioned increases in yields on the loan and investment portfolios and a decrease in the cost of deposits. The previously mentioned recovery of interest on non-accrual loans had a 5 basis point impact on the margin for the quarter.

淨利差由前一季的 3.72% 提升至 3.96%，亦高於 2025 年第一季的 3.44%。此增幅主要來自前述放款與投資組合收益率上升，以及存款成本下降。前述非應計放款利息回收，對本季淨利差有 5 個基點的影響。

We recognize the reversal of provision for credit losses in the amount of $1.03 million in Q1. This reversal was due primarily to adjusting the allowance from 1.10% at the end of 2025 to 1.06% at the end of Q1. This decrease in allowance was due to the acquired Olympic loan portfolio requiring a lesser allowance based on the specific attributes of that portfolio. In addition, net charge-offs remain at very low levels. Tony Chalfant will have an additional information on credit quality metrics in a few moments.

我們於第一季認列 103 萬美元的信用損失準備回轉。此回轉主要因我們將備抵由 2025 年底的 1.10% 調整至第一季末的 1.06%。備抵下降係因併購取得的 Olympic 放款組合，基於該組合的特定屬性，所需備抵較低。此外，淨沖銷仍維持在非常低的水準。Tony Chalfant 將在稍後提供更多關於資產品質指標的資訊。

In addition to the scale of a larger organization, the increase in the non-interest expense was also due to merger-related costs of $5.2 million versus $385,000 in the prior quarter and intangible asset amortization expense of $2.1 million versus $285,000 in the prior quarter. Due to the fact that assistance conversion for Olympic is scheduled for late Q3 of this year, we expect elevated expense levels until Q4.

除組織規模擴大外，非利息費用增加亦因合併相關成本達 520 萬美元（前一季為 38.5 萬美元），以及無形資產攤銷費用 210 萬美元（前一季為 28.5 萬美元）。由於 Olympic 的系統轉換支援預計於今年第三季末進行，我們預期費用水準將維持偏高直到第四季。

Based on the current forecast of staffing levels and merge-related costs, including the fact that Q1 only included two months of combined operations with Olympic. We are expecting quarterly non-interest expense levels to increase to an average of approximately $64 million to $65 million in Q2 and Q3 before decreasing to a range of $56 million to $57 million in Q4.

根據目前對人力配置與合併相關成本的預測，並考量第一季僅包含與 Olympic 合併營運的兩個月。我們預期第二季與第三季的單季非利息費用平均將上升至約 6,400 萬至 6,500 萬美元，之後於第四季下降至 5,600 萬至 5,700 萬美元的區間。

And finally, moving on to capital, all of our regulatory capital ratios remain comfortably above well capital life thresholds and our TCE ratio was 9.6% at the end of Q1 compared to 10.1% in the prior quarter. The decrease in the TCE ratio was expected due to the impact of the merger.

最後談到資本，我們所有監理資本比率仍明顯高於「資本充足」門檻，而第一季末的有形普通股權益（TCE）比率為 9.6%，相較前一季為 10.1%。TCE 比率下降符合預期，係因合併影響所致。

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

我現在把電話交給 Tony，由他更新我們的信用品質。

Thank you, Don. I'm pleased to report that credit quality remained strong and stable in the first quarter. With the addition of the Olympic portfolio during the quarter, the high-quality of these loans had a positive impact on our credit metrics at quarter end.

謝謝你，Don。我很高興報告，第一季信用品質維持強勁且穩定。本季納入 Olympic 投資組合後，這些高品質貸款在季末對我們的信用指標帶來正面影響。

Non-accrual loans totaled $15 million at quarter end, declining by $6 million during the quarter. This represents 0.26% of total loans and compares to 0.44% at the end of 2025. Most of the improvement came from the full repayment of a $5.8 million residential construction loan and a $1.5 million multifamily term loan.

季末非計息貸款合計 1,500 萬美元，季內減少 600 萬美元。這相當於總貸款的 0.26%，相較於 2025 年底的 0.44%。改善主要來自一筆 580 萬美元的住宅建築貸款及一筆 150 萬美元的多戶住宅定期貸款全數償還。

Partially offsetting the improvement was the movement of a $2.6 million C&I relationship to non-accrual status. Within our non-accrual loan portfolio, we have just under $4.2 million in government guarantees. Notably, there were no non-accrual loans in the acquired Olympic portfolio at quarter end.

部分抵銷上述改善的是，一筆 260 萬美元的工商業（C&I）往來關係轉為非計息狀態。在我們的非計息貸款組合中，約有 420 萬美元具政府保證。值得注意的是，季末所收購的 Olympic 投資組合中沒有任何非計息貸款。

With the decrease in non-accrual loans, the ratio of non-performing loans to total loans improved to 0.26% from 0.44% of the end of 2025. During the quarter, we acquired an OREO property through a foreclosure action. This is a single-family residence with a book balance of $755,000. The house will be marketed for sale in the second quarter. This is the first OREO property we've held since 2020.

隨著非計息貸款下降，不良貸款占總貸款比率由 2025 年底的 0.44% 改善至 0.26%。本季我們透過法拍程序取得一項 OREO 資產。這是一棟單戶住宅，帳面餘額為 755,000 美元。該房屋將於第二季上市出售。這是我們自 2020 年以來首次持有的 OREO 資產。

Criticized loans, those rated special mention or worse, moved higher during the quarter by $37 million, with $18 million coming from the inclusion of the Olympic portfolio. As a percentage of total loans, criticized loans were stable at 3.9%, the same percentage that we experienced at the end of 2025.

受評為「特別關注」或更差等級的受批評貸款，本季增加 3,700 萬美元，其中 1,800 萬美元來自納入 Olympic 投資組合。以總貸款百分比計，受批評貸款維持穩定在 3.9%，與 2025 年底相同。

When looking at the more severe substandard category, we saw an improving trend during the quarter. Substandard loans to total loans dropped to 2.1% at quarter-end versus 2.4% at the end of 2025. Most of the improvement was from the payoff of the two non-accrual loan relationships mentioned previously. It should also be noted that the Olympic portfolio had lower levels of criticized loans relative to their total loans, which had a positive impact on the combined ratios. Page 18 in our investor presentation shows the stability in our criticized loans over the past four years.

就更嚴重的「次級（substandard）」類別而言，本季呈現改善趨勢。次級貸款占總貸款比率於季末降至 2.1%，相較 2025 年底的 2.4%。改善主要來自前述兩筆非計息貸款往來關係的清償。另需指出，Olympic 投資組合的受批評貸款水準相對其總貸款較低，對合併後比率帶來正面影響。投資人簡報第 18 頁顯示過去四年我們受批評貸款的穩定性。

As of quarter end, our ratio of total non-owner-occupied CRE loans to total loans moved just above the regulatory guidance level to 301%. The increase in the ratio was due to the inclusion of the Olympic portfolio and the fair value accounting for the acquisition. While growth in CRE loans was modest during the quarter, the lower combined capital level from the fair value marks resulted in a higher total CRE ratio. The increase was expected from our acquisition modeling, and we anticipate the ratio will decline to historical levels over time.

截至季末，我們非自用商用不動產（CRE）貸款占總貸款比率略高於監理指引水準，達 301%。該比率上升係因納入 Olympic 投資組合，以及併購採用公允價值會計所致。雖然本季 CRE 貸款成長溫和，但因公允價值調整使合併後資本水準較低，導致總 CRE 比率上升。此上升符合我們併購模型的預期，我們預期該比率將隨時間下降至歷史水準。

During the quarter, we experienced total charge-offs of $583,000. Approximately 70% came from our commercial portfolio, with the remainder coming from our consumer loans. The losses were partially offset by $31,000 in recoveries, leading to net charge-offs of $552,000 for the quarter. On an annualized basis, this represents 0.04% of total loans. And is consistent with the 0.03% ratio that we achieved for the full year 2025.

本季總核銷金額為 583,000 美元。約 70% 來自商業組合，其餘來自消費性貸款。損失部分由 31,000 美元的回收款抵銷，使本季淨核銷為 552,000 美元。以年化計算，約占總貸款的 0.04%。並與我們 2025 全年達成的 0.03% 比率一致。

While we are pleased with the stability in our credit metrics through the first quarter, we are aware of the emerging risks in the economy and the potential impact on our credit quality. We remain consistent in our disciplined approach to credit underwriting and believe this is reflected in the strong credit performance we've maintained over a wide range of business cycles.

雖然我們對第一季信用指標的穩定感到滿意，但我們也注意到經濟中正在浮現的風險，以及其對信用品質的潛在影響。我們將持續維持嚴謹的授信承作紀律，並相信這反映在我們於各種景氣循環中所維持的強勁信用表現。

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

我現在把電話交給 Bryan，請他更新我們的業務產出。

Thanks, Tony. I'm going to provide details on our first-quarter production results, starting with our commercial lending group. For the quarter, our commercial team closed $166 million in new loan commitments, down from $254 million last quarter and down slightly from $183 million closed in the first quarter of 2025. Please refer to page 12 in the investor presentation for additional detail on new originated loans over the past five quarters.

謝謝你，Tony。我將說明第一季的產出結果，先從我們的商業放款團隊開始。本季商業團隊完成 1.66 億美元的新貸款承諾，低於上季的 2.54 億美元，也略低於 2025 年第一季完成的 1.83 億美元。更多關於過去五季新承作貸款的細節，請參閱投資人簡報第 12 頁。

The commercial loan pipeline ended the first quarter at $631 million, up from $468 million last quarter and up from $460 million at the end of the first quarter of 2025. Loan balances increased $939 million during the quarter. The majority of this increase was due to the merger, but heritage loan balances, excluding any impact from Olympic, were up $20 million in the quarter. Based on the current pipeline, we expect an annualized loan growth rate in the mid-single-digit range the next couple of quarters.

商業貸款案源（pipeline）於第一季末為 6.31 億美元，高於上季的 4.68 億美元，也高於 2025 年第一季末的 4.60 億美元。本季貸款餘額增加 9.39 億美元。此增幅多數來自合併；若排除 Olympic 的任何影響，傳承（heritage）貸款餘額本季增加 2,000 萬美元。依目前案源，我們預期未來幾季年化貸款成長率將落在中個位數區間。

Deposits increased just over $1.3 billion due to the merger. Excluding the merger, deposits decreased $61 million, which included a $29 million decline in brokered CDs. The first quarter decline is typical of our deposit seasonality, with declines often occurring in the first quarter and through the end of April due to tax payments.

存款因合併增加逾 13 億美元。若排除合併因素，存款減少 6,100 萬美元，其中包含經紀存單（brokered CDs）減少 2,900 萬美元。第一季的下滑符合我們存款的季節性特徵，通常第一季至 4 月底因繳稅而出現下降。

The deposit pipeline ended the quarter at $81 million, compared to $108 million in the fourth quarter. And average balances on new deposit accounts opened during the quarter are estimated at $33 million, compared with $43 million last quarter.

存款案源於季末為 8,100 萬美元，第四季為 1.08 億美元。本季新開立存款帳戶的平均餘額估計為 3,300 萬美元，相較上季為 4,300 萬美元。

Moving to interest rates, our average first quarter interest rate for new commercial loans was 6.11%, which is down 45 basis points from the 6.56% average for last quarter. This rate average is based on outstanding balances. Using average commitment balances, the average was 6.41%. In addition, the first quarter rate for all new loans was 6.16%, down 27 basis points from 6.43% last quarter.

談到利率，我們第一季新承作商業貸款的平均利率為 6.11%，較上季平均 6.56% 下降 45 個基點。此平均利率係以未償餘額為基礎計算。若以平均承諾額計算，平均為 6.41%。此外，第一季所有新貸款的利率為 6.16%，較上季的 6.43% 下降 27 個基點。

In closing, as mentioned earlier, we are pleased to have the Olympic merger closed, which strengthens our position in the Puget Sound. And overall, we believe we are well positioned to navigate what is ahead and to take advantage of various opportunities to continue to grow the bank.

最後，如先前所提，我們很高興 Olympic 合併已完成，這強化了我們在普吉特灣（Puget Sound）的布局。整體而言，我們相信自身已具備良好定位，能因應未來局勢並把握各種機會，持續推動銀行成長。

With that said, Angela, we can now open the line for questions from call attendees.

在此，Angela，我們現在可以開放線路讓與會者提問。

(Operator Instruction)

（接線員指示）

Jeff Rulis, D.A. Davidson.

Jeff Rulis，D.A. Davidson。

Thanks. Good morning.

謝謝。早安。

Morning, Jeff.

早安，Jeff。

I wanted to circle back on the expenses. I wanted to seem kind of high. I understand that you have got Olympic for the full quarter, but by chance, are you including additional merger costs in that 60 -- I think you said $64 million to $55 million in the next couple of quarters?

我想再回頭談一下費用。我原本覺得看起來有點偏高。我了解你們這一季把 Olympic 納入了完整一季，但想請問一下，你們在那個 60——我記得你說接下來幾季是 6,400 萬到 5,500 萬美元——的數字裡，是否也包含了額外的併購成本？

Jeff, yes, that includes the merger-related expenses. If you take out merger costs, we're more in the $57 million to $58 million range for the next two quarters and then dropping to about $55 million by Q4. So I was including everything in that.

Jeff，是的，那裡面包含了併購相關費用。如果把併購成本扣除，接下來兩季大約會在 5,700 萬到 5,800 萬美元的區間，然後到第四季會降到大約 5,500 萬美元。所以我剛剛那個數字是把所有項目都算進去的。

So $55 million post-deal ex merger is the run rate that you're pointing to in Q4?

所以你指的是，交易完成後、扣除併購費用的常態化費用率，在第四季是 5,500 萬美元？

Yes.

是的。

Okay. And if you could -- Don, you offered some rough detail on where those merger costs were by line item, but do you have a dollar figure to just to kind of really carve those out if possible?

好的。另外，如果可以的話——Don，你剛剛有大致提到這些併購成本按科目大概落在哪些項目，但你是否能提供一個金額，讓我們能更明確地把它們剔除出來？如果可能的話。

Like over the remaining three quarters or -- is that what you're looking for?

你是指接下來剩餘三個季度的合計，還是——你想問的是這個嗎？

No. In the trailing quarter, 1Q, the 5 -- just over $5 million, the book -- if you could just point us to where that -- by line item where that was mapped?

不是。是指回溯的那一季，也就是第一季那 500 多萬美元——帳上——你能否指出那筆費用是按科目被歸類到哪裡？

Well, professional services would be a big one on that. And then also the compensation cause of severance would be some. And then I think we also have some contract stuff that would show up in potential data processing, but those are the bigger ones. I don't have it broken out by type, that $5 million.

嗯，專業服務費會是其中一個大項。另外，因為資遣費而產生的薪酬費用也會有一些。然後我想我們也有一些合約相關的項目，可能會出現在資料處理費用裡，但以上是比較大的幾項。那 500 萬美元我沒有再按類型細分。

Okay. That's helpful. We'll just kind of give you those out. Great. Thanks, Don. And then on the margin, did you say it was the interest recovery was 5 or 6 basis points beneficial to the margin?

好的。這很有幫助。我們就大概把那些剔除掉。很好。謝謝你，Don。另外關於利差，你剛剛是說利息回收對利差有利，大概是 5 或 6 個基點嗎？

To the margin, it was -- for the quarter. I think it was 5 for the quarter. Did you come with the interest reversals?

對利差而言，是——就本季來看。我想本季是 5 個基點。你是指利息沖回（interest reversals）那部分嗎？

Yes.

是的。

Yeah, on the interest reversals, it was 5.

對，利息沖回那部分是 5 個基點。

Okay. And, it's a moving piece --

好的。而且那是一個會變動的因素--

It's 6 on the loan yield itself --

就貸款收益率本身是 6 個基點--

6 on the loan yield, 5 on the margin. Appreciate it. And then, I guess, Don, you have the March average for the margin as it maybe post --

貸款收益率是 6 個基點，利差是 5 個基點。了解，謝謝。然後我想，Don，你有 3 月的平均利差數字，可能是交易後的--

Yeah. I've got that. I knew you'd ask for it. I knew somebody would ask for it. The margin -- if I take out the interest reversals on for March NIM, it was 3.95%. It was 4.2%, but if we take out the interest reversals that we had because a lot of them have happened in March, it was 3.95%.

有。我有那個。我就知道你會問。我知道一定會有人問。利差——如果我把 3 月 NIM 裡的利息沖回剔除，會是 3.95%。原本是 4.2%，但如果把我們的利息沖回拿掉，因為很多是在 3 月發生的，就會是 3.95%。

Okay. And the 3.95% would include accretion that's part one and then part two. Okay. And then I guess your expect -- is there any kind of heavy-handed accretion up front or could we --?

好的。那 3.95% 會包含折價攤銷收益（accretion），這是第一部分，然後第二部分。好的。那我想你們的預期——前期會不會有比較明顯的折價攤銷收益拉抬，或者我們可以--？

I think it is a different study. Yeah -- I mean, there's always a chance that you're going to get a large payoff that will cause it to increase. But I don't expect to be anything unusual that we've been experiencing so far. And of course, we've had two months of experience, but I don't think it's going to be -- I don't think anything happened in March that was unusual that would be compared to the rest of the going forward.

我認為那是另一個研究（study）。對——我的意思是，總是有可能出現一筆較大的提前清償，導致它上升。但我不預期會有任何異常，和我們目前為止的經驗相比。當然，我們只有兩個月的經驗，但我不認為——我不覺得 3 月發生了任何不尋常的事情，會和未來接下來的情況有明顯不同。

And then leaning back to the introductory comments about upward trajectory from here. We'll kind of do what we will with accretion, but the core sounds fairly positive. Any sort of further comments on how you have 4%-plus or anything on the go-forward margin expectations with that upward trajectory in mind?

再回到你一開始提到的、從這裡開始向上走的軌跡。我們會自行處理折價攤銷收益（accretion）的部分，但核心面看起來相當正面。在考量這個向上軌跡下，你對未來利差預期是否還有其他補充，例如 4%以上或其他看法？

Yeah, I think we're going to continue to see margin expansion, not going to be significant. But again, depending on things like how much we can leverage the balance sheet and loan growth. We will get a little bit of increase every quarter due to the fact that, again, the loans are repricing every quarter. So the ones that are either adjustable or the new ones coming on are higher. I expect to reach the four percent by the end of the year or before.

是的，我認為我們會持續看到利差擴張，不會非常顯著。但同樣地，取決於像是我們能在多大程度上運用資產負債表槓桿以及貸款成長。由於貸款每一季都會重新定價，我們每一季都會有一些小幅提升。所以不論是可調利率的貸款，或是新承作的貸款，利率都更高。我預期在年底或更早就能達到 4%。

Okay. Thanks, Don. Appreciate it.

好的。謝謝你，Don。感謝。

Jackson Laurent, Stephens.

Jackson Laurent，Stephens。

Hey, good morning. This is Jackson on for Andrew Terrell. Could just start off on the balance sheet. I appreciate the color on the updated growth trajectory for loans. I was just wondering where you guys are seeing signs of strength in the portfolio.

嗨，早安。我是 Jackson，代替 Andrew Terrell。我想先從資產負債表開始。謝謝你們提供貸款更新後成長軌跡的說明。我想請問你們在投資組合中看到哪些強勁的跡象？

What you guys are seeing from the Kitsap bankers early on? And then maybe just a little bit of color on what caused a change in expectations. I think we were talking about upper single-digits in January after kind of low single-digits in the first quarter.

你們從 Kitsap 的銀行團隊在初期看到什麼？另外也想請你們補充一下，是什麼原因導致預期出現變化。我記得我們在 1 月談的是高個位數成長，而第一季是低個位數之後。

Sure. Maybe I'll go to Tony Chalfant first just for comments just on credit in general, and then I'll pick up on the Kitsap commercial bankers and, loan pipeline, and outlook.

好的。也許我先請 Tony Chalfant 先就整體信用狀況做一些評論，然後我再接著談 Kitsap 的商業銀行團隊、貸款管線以及展望。

Yes. Thank you, Bryan. This is Tony. Yeah, Jackson, with the merger, the credit cultures were pretty similar, so we haven't really had to make any real changes in our approach, with the Kitsap bankers. They look at credit very similarly to how we look at it. I think there's going to be some opportunities for some of their better borrowers to have some higher borrowing limits, which will probably help extend those relationships a bit more.

是的。謝謝你，Bryan。我是 Tony。Jackson，因為這次併購，雙方的信用文化相當接近，所以我們在與 Kitsap 的銀行團隊合作時，基本上不需要對我們的方法做任何實質調整。他們看待信用的方式和我們非常類似。我認為他們一些較優質的借款人，未來可能有機會取得更高的授信額度，這大概也會有助於把這些關係延伸得更深一些。

But generally, we're feeling pretty comfortable on a go-forward basis, on a combined basis. Areas of strength really continue to be just a lot of opportunities in the owner-occupied CRE space and continuing to really push as hard as we can on the C&I space, just because it comes with the relationship and deposits and such.

但整體而言，就未來而言、在合併後的基礎上，我們感覺相當安心。強勁的領域仍然是自用型商用不動產（owner-occupied CRE）有很多機會，並且我們也會持續盡可能大力推進工商貸款（C&I）領域，因為它通常會帶來往來關係、存款等。

Brian, I'll let you kind of cover the pipeline things.

Brian，我讓你大致說明一下管線相關的事項。

Yeah, really the primary driver behind the change in loan growth from last year was the larger level of construction loan payoffs that we had in 2025, which we mostly worked through before the end of the year. Those were the larger ones that we had been expecting, and that was really related to just a bulge in construction loan activity in prior years that then converted to payoffs last year.

是的，與去年相比，貸款成長變化背後的主要驅動因素，是我們在2025年有較高水準的建築貸款清償，而我們大多在年底前就已大致處理完畢。那些是我們原本就預期會發生、規模較大的案子，主要是因為前幾年建築貸款活動出現一波高峰，到了去年就轉化為清償。

We did have a few payoffs in the Kitsap portfolio that were not unexpected, but a few larger ones that transpired before and after close. The driver behind the go-forward growth rate is really the change in the pipeline. The pipeline had been growing when we did our Q4 call in January, and we've seen it continue to grow. The pipeline's up 35% over where it was at the end of quarter four and up a little more than that when you compare it to quarter one a year ago.

Kitsap投資組合確實有幾筆清償並非意外，但也有幾筆較大的在交割前後發生。未來成長率的驅動因素，主要就是管線的變化。我們在1月進行第四季電話會議時，管線正在成長，而我們也看到它持續成長。管線較第四季末增加了35%，與一年前第一季相比則增加得更多一些。

And we did see some of the deal closings push a little bit from first quarter, expect them to close in the second quarter, so we didn't close quite as much as we anticipated we might when we were on the Q4 call. But regardless, we're still seeing a good pipeline and absent some change in borrower behavior, related to outside factors, we feel good about that pipeline, driving, kind of mid single-digit loan growth, the next couple quarters.

我們也確實看到部分交易結案從第一季稍微往後推，預期會在第二季結案，因此我們第一季的結案量沒有像在第四季電話會議時所預期的那麼多。但不管怎麼說，我們仍看到不錯的管線；若借款人行為沒有因外部因素而出現變化，我們對這個管線很有信心，預期它將在未來幾季帶動大約中個位數的貸款成長。

Got it. That's all super helpful. Thank you very much. And then maybe just switching to deposit costs. I mean, we've all heard a lot on competition recently. And we -- personally, we track CD promotional rates and it looks like you guys raised your highest rate recently. So just kind of given your already low cost of deposits, was just wondering how you guys were thinking about deposit repricing going forward and if you guys think there's any risk to upward migration and deposit costs throughout this year?

了解。這些都非常有幫助。非常感謝。接著也許切換到存款成本。我是說，我們最近都聽到很多關於競爭的情況。而我們——就我們自己而言——會追蹤定存（CD）促銷利率，看起來你們最近調高了最高利率。所以，考量你們本來存款成本就偏低，想請教你們如何看待未來的存款重訂價，以及你們是否認為今年存款成本有任何上行遷移的風險？

Don, you want to start and I will add some comments after you're done.

Don，你要不要先開始，我在你講完後再補充一些評論。

Sure. Yeah, the competition is out there. We did raise our very highest rate, some on the CD side. While we're talking about cost deposits for the quarter, it's 1.71%, for March it was 1.68%, so it came down a little bit, but I really don't expect it to move a whole lot.

好。是的，競爭確實存在。我們在定存（CD）端把最高利率稍微調高了一些。如果談本季的存款成本，是1.71%；3月是1.68%，所以略有下降，但我其實不預期它會有太大變動。

Now, I think we'll get a little bit of help from some higher CDs coming down and, but I think there will also be offsets potentially if you're bringing in some maybe, new customers or new with full relationships, there could be higher rates you're paying there. So I think it's going to offset, and I think we're going to stay right around that. We're at 1.68% now, again, for March. I think we'll stay right around that for the remainder of the year, hovering around 1.70%. It's not going to move much, I don't think, at this point, unless the Fed does something.

我想我們會從一些較高利率的定存到期下調得到一點幫助；但同時也可能有抵銷因素，例如若你引進一些新客戶，或是新的完整往來關係，你可能需要支付較高利率。所以我認為會互相抵銷，我們大概會維持在這個水準附近。我們目前3月是1.68%。我認為今年剩餘時間會大致維持在這附近，約在1.70%上下徘徊。我不覺得此時會有太大變動，除非聯準會有所動作。

And Jackson, I would just add, you're right. As Don confirmed, we are seeing stronger deposit competition out there for kind of any excess dollars going into money market accounts or CDs. We're having good success with our relationship strategy, which is really the way we're driving our deposit growth. So we are having to continue to compete for those -- kind of those extra funds, if you will, but still winning good quality operating relationships, and that's what's allowing us to keep the overall mix in alignment with where it's been before and the cost at these levels.

Jackson，我補充一下，你說得沒錯。如Don所確認，我們確實看到存款競爭更為激烈，特別是針對那些多餘資金流入貨幣市場帳戶或定存（CD）。我們的關係策略成效良好，而這正是我們推動存款成長的方式。因此，我們必須持續競爭那些——可以說是額外的資金——但同時仍能贏得高品質的營運往來關係，這也讓我們能把整體組合維持在與過去一致的水準，並把成本維持在目前這些水準。

Got it. That's helpful. Thank you. Then maybe just lastly, switching over to capital. I know your guys' focus is probably still on further integration and the conversion in 3Q, but just wanted to get your updated thoughts on the buyback and maybe potential future loss trades going forward?

了解。這很有幫助。謝謝。最後也許切換到資本。我知道你們的重點可能仍在進一步整合，以及第三季的系統轉換，但想請教你們對庫藏股回購的最新看法，以及未來可能的損失交易（loss trades）？

Sure. We don't foresee at this point any loss trades, things can change on that, but we will be always looking to manage our capital, keep it. But I think we're in a pretty good range right now where it's at. So -- we may be doing things such as being involved in buybacks to kind of manage our capital levels. We still have about 800,000 shares left in our current repurchase plan, and so we may be active this quarter in that.

當然。就目前而言，我們不預期會有任何損失交易；當然情況可能會改變，但我們會一向著眼於資本管理並維持適當水準。不過我認為我們目前的資本水準落在相當不錯的區間。所以——我們可能會採取例如回購等措施，來管理我們的資本水準。我們目前的回購計畫還剩大約80萬股，因此本季我們可能會在這方面有所動作。

Got it. Thank you. I'll step back now.

了解。謝謝。我先退到後面。

Charlie Driscoll, KBW.

Charlie Driscoll，KBW。

Hey, guys. Thanks for the question. This is Charlie on for Kelly Motta. Just wondering with the ongoing disruption across Pacific Northwest Bank and noting that year. Our employee count jumped with the addition of Kitsap here. Are you seeing opportunities to recruit any commercial venue teams or individual producers beyond Kitsap? Is any incremental like hiring embedded in the expense run rate in 2026?

嗨，各位。謝謝讓我提問。我是Charlie，代替Kelly Motta。想請教，鑑於太平洋西北地區銀行業持續的動盪，以及你們提到那一年。隨著這次加入Kitsap，我們的員工人數有所跳升。你們是否看到機會在Kitsap之外招募任何商業端團隊或個別業務人員？2026年的費用基準（expense run rate）中是否已包含任何額外增聘？

We are out recruiting. We would traditionally add high-quality bankers as they become available across the footprint. We're not seeing necessarily an increase in total banker headcount just because we continue to have, retirements of our longtime bankers. But we have been adding bankers in a number of our teams, just one or two to a particular team.

我們正在對外招募。一如以往，只要在我們的營運版圖內有高品質的銀行家可用，我們就會增補。我們不一定看到銀行家總人數會增加，因為我們仍持續面臨資深銀行家退休。但我們確實在多個團隊中增補了銀行家，通常是一個團隊增加一到兩位。

But those have been largely netted out so far with retirements. We are continuing to talk to folks, certainly would be open to doing teams if the right opportunities came our way, just like we have in the past. But so far, it's been onesie-twosie spread out amongst various teams.

但到目前為止，這些增補大多已被退休人數所抵銷。我們仍持續與一些人選洽談；如果有合適的機會出現，我們當然也願意像過去一樣引進整個團隊。但目前為止，主要是零星的一兩位，分散在不同團隊。

Great, thanks. And then I guess just taking a step back on the acquisition and understanding conversions in Q3, just wondering where, if anywhere, execution has kind of run ahead of or behind schedule? Just kind of maybe stepping back on customer retention, producer retention, any experience realizations, just how things are holding up with the integration?

很好，謝謝。接著我想從併購的角度退一步看，並理解系統轉換在第三季，想請教目前在執行上是否有任何部分超前或落後於時程？例如客戶留存、業務人員留存、任何協同效益的實現等，整合目前的狀況如何？

Yeah. Charlie, I would say we're right on track. Obviously, there's many components to the integration plan. But we look at the status every week and right on track. I think from a customer impact standpoint, it's been really -- there hasn't been any kind of negative customer response to the combination, but I think we'll learn more on that when we actually go through the systems conversion, but of course, we've retained.

是的。Charlie，我會說我們完全按計畫進行。顯然整合計畫包含許多組成部分。但我們每週都會檢視進度，目前都在軌道上。我認為從客戶影響的角度來看，整體而言——對於這次合併並沒有出現任何負面的客戶反應；不過我想等到我們實際進行系統轉換時會了解更多，當然，我們已經留住了。

All the branch teams, the commercial bankers, and so for the customers, they haven't had any sort of disruption. As Tony mentioned, a good fit between credit cultures, so no disruptions there. So overall, going just as we had hoped and anticipated.

所有分行團隊、商業銀行業務人員，以及對客戶而言，都沒有出現任何形式的中斷。正如 Tony 提到的，信貸文化之間契合度很高，因此那邊也沒有任何干擾。所以整體而言，一切都如我們所希望與預期地進行。

Great. Thank you.

很好。謝謝。

Thanks, Charlie.

謝謝你，Charlie。

Evan Kwiatkowski, Raymond James.

Evan Kwiatkowski，Raymond James。

Hey, guys, this is Evan on for David Feaster. How are you guys doing?

嗨，各位，我是 Evan，代替 David Feaster 上線。你們最近怎麼樣？

Good.

很好。

Hey, I was just sticking on loan growth. I just was kind of curious, the color on the pipeline is really helpful, but maybe more broadly, I'm curious how borrower sentiment has been holding up within your markets, especially with some of the macro inserts need we've been experiencing.

嗨，我想繼續追問貸款成長。你們對管線的補充說明很有幫助，但更廣泛地說，我想了解在你們的市場裡，借款人情緒目前維持得如何，尤其是在我們近期經歷一些宏觀層面的不確定性之下。

And then maybe a follow-up to that, just like on payoffs and paydowns, I know they've been a headwind to the industry broadly. Good to see those pressures debating this quarter. So I'm kind of expecting, what you expect to see on payoffs and paydowns going forward as well.

另外也想接著問一下關於到期清償與提前償還（payoffs 與 paydowns），我知道這在整個產業普遍都是逆風。很高興看到本季這些壓力有所緩解。所以我想請教你們對未來到期清償與提前償還的走勢有何預期。

Sure. We've really seen the pipeline build since last summer after the Big Beautiful Bill passed just incrementally. And we did see some delay in deals closing but -- and that's part of the growth in the pipeline Maybe a little bit lower closings in Q1 than what we potentially could have had. But overall continuing to see growth in the pipeline .You know after the increase in you know disruption related to the war.

當然。自從去年夏天《Big Beautiful Bill》通過後，我們確實看到管線逐步建立起來。我們也確實看到部分交易結案有所延後，但——這也是管線成長的一部分；第一季的結案量可能比我們原本可能達到的水準略低一些。但整體而言，管線仍持續成長。你知道，在與戰爭相關的干擾增加之後也是如此。

So we're watching it really closely. Typically, when you have disruption, there's some of the customers that just decide to hold for a little while or delay. We're not seeing that so far, but it may be a little early to tell what the final implications will be in terms of how many deals fall out of the pipeline. But as we got to the tail end of the quarter and even coming into April, we've continued to see, strong new deal flow into the pipeline.

因此我們正非常密切地觀察。通常在出現干擾時，會有一些客戶選擇先觀望一段時間或延後決策。目前我們尚未看到這種情況，但現在判斷可能還稍早，尚難確定最終影響會是什麼，例如有多少交易會從管線中流失。不過在季度末，甚至進入四月後，我們仍持續看到強勁的新交易流入管線。

And then on your second part of the question, just on payoffs and prepaids, slide 15 in the deck, has detail on last year and then Q1 of '26, and if you look at the prepayments and payoffs last year, dividing that number by four to get a quarterly number, we're running a little lower in Q1 than we did on average last year, although we've got a much, larger portfolio with the addition of the Kitsap and some of the payoff activity in Q1 was a couple chunky deals on the Kitsap side.

至於你問題的第二部分，關於到期清償與提前償還，簡報第 15 頁有去年以及 2026 年第一季的細節；如果你看去年提前償還與到期清償的金額，把那個數字除以四換算成單季，我們第一季的水準比去年平均略低，儘管因為加入 Kitsap，我們的投資組合規模大了很多，而且第一季部分清償活動來自 Kitsap 端的幾筆較大交易。

So overall, that payoff activity is lower, than what we encountered last year. We'll obviously continue to update everybody on that as we go quarter to quarter and get a better sense of if there's some chunkier deals in the Kitsap portfolio that are going to pay off as we continue through the year. But right now, it's looking like that trend is going to be something lower than last year on prepays and payoffs.

所以整體而言，這些清償活動低於我們去年遇到的水準。我們當然會在每一季持續向大家更新，並更清楚掌握 Kitsap 投資組合中是否還有一些較大筆的交易會在今年持續清償。但就目前來看，提前償還與到期清償的趨勢看起來會低於去年。

That's really helpful. Thanks for the color on that. And then maybe switching to credit. Credit trends are really good during the quarter. Non-accruals and substandards are down, and it sounds like itself is additive to your credit profile. But I'm just curious if you're seeing any specific sectors or business lines that are exhibiting maybe some outsized pressure or you're watching a little bit more closely than others? Thanks.

這非常有幫助。謝謝你補充說明。接著也許轉到信用品質。本季信貸趨勢非常好。不計息貸款與次級分類都下降了，而且聽起來 Kitsap 對你們的信貸概況是加分的。但我想請教，你們是否看到任何特定產業或業務線出現較大的壓力，或是你們正在比其他領域更密切關注的？謝謝。

Sure. Tony, you want to take that one.

當然。Tony，你要回答這題嗎？

Yeah, Evan. I think we've seen over the last year that the non-owner-occupied loan space has been really strong, really a solid part of our portfolio. Where we have seen a little more pressures in the C&I portfolio. If you look year over year, we've had a bit of an increase proportionally in our special mention in substandard loans in the C&I category.

好的，Evan。我想我們在過去一年看到，自用以外（non-owner-occupied）的貸款領域表現非常強勁，確實是我們投資組合中很穩健的一部分。我們看到壓力稍微大一些的是 C&I（商業與工業）投資組合。如果你看年對年，我們在 C&I 類別中的特別關注（special mention）與次級（substandard）貸款占比有些上升。

And a lot of that -- it's not really tied to one specific industry or one specific situation, but it all ties back to just the uncertainty in the economy, whether it's tariff issues, higher labor costs, supply chain issues, all of the above, and as you find in those kind of situations.

而其中很大一部分——其實並不是真的與某一個特定產業或某一個特定事件綁定，而是都回到經濟的不確定性，不論是關稅議題、更高的勞動成本、供應鏈問題，或以上皆是；而在這類情況下你也會發現——

Some companies are just better positioned with management and balance sheet strength to withstand that than others. So we've just seen some weakness in that area as we go forward. So the area we'll be watching closely, but it's really difficult to sort of pinpoint it to one specific industry or one specific issue. But it's probably worth noting. Does that cover your question, Evan? Or do you have more you wanted me to hit on?

有些公司在管理團隊與資產負債表強度方面的條件更好，因此比其他公司更能承受這些衝擊。所以我們確實看到那個領域在往前走時有一些疲弱。因此那會是我們會密切關注的領域，但要把它精準歸因到某一個特定產業或某一個特定問題，其實很難。但我想這點值得一提。這樣有回答到你的問題嗎，Evan？還是你希望我再補充其他部分？

Oh, sorry about that. I was having some connection issues here. No, that's helpful. Thank you for that. But I'll step back.

噢，不好意思。我這邊連線有點問題。沒有，這很有幫助。謝謝你的說明。我先回到隊列。

Thanks, Evan.

謝謝你，Evan。

That concludes our question-and-answer session. I will now turn the conference back over to Mr. Bryan McDonald for closing remarks.

問答環節到此結束。接下來我將把會議交回給 Bryan McDonald 先生作結語。

Thank you, Angela. If there are no more questions, then we'll wrap up this quarter's earnings call. We thank you for your time, your support, and your interest in our ongoing performance. We look forward to talking with many of you in the coming weeks. Have a good day.

謝謝你，Angela。如果沒有更多問題，我們就結束本季的法說會。感謝各位撥冗、支持，以及對我們持續表現的關注。我們期待在接下來幾週與各位中的許多人交流。祝各位有美好的一天。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

各位女士、先生，今天的電話會議到此結束。感謝各位參與。您現在可以掛線。