Hope Bancorp Inc (HOPE) 2023 Q3 法說會逐字稿

Good day, and welcome to the Hope Bancorp's 2023 Third Quarter Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 Hope Bancorp 2023 年第三季收益電話會議。 （操作員說明）請注意此事件正在被記錄。

And I would now like to turn the conference over to Angie Yang, Director of Investor Relations. Please go ahead.

現在我想將會議交給投資者關係總監 Angie Yang。請繼續。

Thank you, Marliese. Good morning, everyone, and thank you for joining us for the Hope Bancorp 2023 Third Quarter Investor Conference Call. As usual, we will be using a slide presentation to accompany our discussion this morning, which is available in the Presentations page of our Investor Relations website.

謝謝你，瑪莉絲。大家早安，感謝您參加 Hope Bancorp 2023 年第三季投資者電話會議。像往常一樣，我們將使用幻燈片演示來配合今天早上的討論，該演示可以在我們的投資者關係網站的演示頁面中找到。

Beginning on Slide 2, let me begin with a brief statement regarding forward-looking remarks. The call today may contain forward-looking projections regarding the future financial performance of the company and future events. These statements may differ materially from actual results due to certain risks and uncertainties. In addition, some of the information referenced on this call today are non-GAAP financial measures.

從投影片 2 開始，讓我先對前瞻性言論做一個簡短的聲明。今天的電話會議可能包含有關公司未來財務表現和未來事件的前瞻性預測。由於某些風險和不確定性，這些陳述可能與實際結果有重大差異。此外，今天本次電話會議引用的一些資訊是非公認會計準則財務指標。

For a more detailed description of the risk factors and a reconciliation of GAAP to non-GAAP financial measures please refer to the company's filings with the SEC as well as the safe harbor statements in our press release issued yesterday. Hope Bancorp assumes no obligation to revise any forward-looking projections that may be made on today's call.

有關風險因素的更詳細描述以及 GAAP 與非 GAAP 財務指標的調節，請參閱該公司向 SEC 提交的文件以及我們昨天發布的新聞稿中的安全港聲明。 Hope Bancorp 不承擔修改今天電話會議中可能做出的任何前瞻性預測的義務。

Now we have allotted 1 hour for this call. Presenting from the management side today will be Kevin Kim, Hope Bancorp's Chairman, President and CEO; and Julianna Balicka, our Chief Financial Officer. Peter Koh, our Chief Operating Officer, is also here with us as usual and will be available for the Q&A session.

現在我們為這次通話分配了 1 小時。今天，來自管理層的嘉賓將是 Hope Bancorp 董事長、總裁兼執行長 Kevin Kim；以及我們的財務長朱莉安娜·巴利卡 (Julianna Balicka)。我們的營運長 Peter Koh 也像往常一樣與我們在一起，並將參加問答環節。

With that, let me turn the call over to Kevin Kim.

現在，讓我把電話轉給凱文金 (Kevin Kim)。

Thank you, Angie. Good morning, everyone, and thank you for joining us today. Now let's begin on Slide 3 with a brief overview of the quarter. For the third quarter of 2023, our net income was $30 million or $0.25 per diluted share. Highlights of our third quarter results include net interest margin expansion of 13 basis points quarter-over-quarter, which led to a 4% linked quarter growth in net interest income. We maintained disciplined expense control, resulting in a 1% decline in noninterest expenses compared with the preceding quarter. However, the provision for credit losses increased to $17 million for the third quarter and certain onetime gains in noninterest income from the second quarter did not reoccur. As a result, our net income decreased on a linked-quarter basis.

謝謝你，安吉。大家早安，感謝您今天加入我們。現在讓我們從投影片 3 開始，簡要概述本季。 2023 年第三季度，我們的淨利潤為 3,000 萬美元，即稀釋後每股收益 0.25 美元。我們第三季業績的亮點包括淨利差環比擴大 13 個基點，導致淨利息收入季度環比成長 4%。我們保持嚴格的費用控制，非利息費用較上季下降 1%。然而，第三季的信貸損失撥備增加至 1,700 萬美元，而第二季非利息收入的某些一次性收益並未再次出現。因此，我們的淨利潤環比下降。

During the third quarter, we continued to strengthen our balance sheet, which positions us well to take advantage of profitable growth opportunities going forward. Total deposits grew 1% quarter-over-quarter, reflecting stronger customer deposit growth of 3%, partially offset by a planned reduction of brokered time deposits. All regulatory capital ratios expanded. Our liquidity continues to be ample.

第三季度，我們繼續強化資產負債表，這使我們能夠充分利用未來的獲利成長機會。存款總額較上季成長 1%，反映出客戶存款成長 3%，但部分被計畫減少的經紀定期存款所抵銷。所有監理資本比率均有所擴大。我們的流動性依然充裕。

Continuing to Slide 4 for a more detailed review of our capital. Our capital ratios are strong and all regulatory capital ratios expanded quarter-over-quarter. As of September 30, our common equity Tier 1 ratio was 11.67%, up 62 basis points from June 30, and our total capital ratio was 13.23%, up 59 basis points quarter-over-quarter. Adjusting for the allowance for credit losses and including hypothetical adjustments for investment security marks, all our capital ratios remain high. Our Board of Directors declared a quarterly common stock dividend of $0.14 per share payable on November 16 to stockholders of record as of November 2, 2023.

繼續查看投影片 4，對我們的資本進行更詳細的審查。我們的資本比率強勁，所有監理資本比率逐季擴大。截至9月30日，我們的普通股一級資本比率為11.67%，較6月30日上升62個基點；總資本比率為13.23%，較上季上升59個基點。調整信用損失準備金並包含投資安全標記的假設調整後，我們所有的資本比率仍然很高。我們的董事會宣佈於 11 月 16 日向截至 2023 年 11 月 2 日登記在冊的股東派發每股 0.14 美元的季度普通股股息。

Moving on to Slide 5. At September 30, our cash and cash equivalents were $2.5 billion, up from $2.3 billion at June 30. At the end of the third quarter, our available borrowing capacity, together with cash and cash equivalents and unpledged investment securities increased to $8.3 billion or 53% of our deposits and well exceeding our uninsured deposit balances.

轉到投影片5。截至9 月30 日，我們的現金和現金等價物為25 億美元，高於6 月30 日的23 億美元。第三季末，我們的可用借款能力，連同現金和現金等價物以及未質押的投資證券增至 83 億美元，占我們存款的 53%，遠超過我們未投保的存款餘額。

Continuing to Slide 6. At September 30, our total deposits were $15.7 billion, an increase of 1% quarter-over-quarter, reflecting linked quarter growth of 3% in customer deposits primarily in money market and savings accounts, partially offset by a $368 million reduction of brokered time deposits. Increase in core deposits is a key priority for the company, and we saw excellent results from our frontline efforts during the third quarter. Our gross loan-to-deposit ratio was 91% at September 30, down from 95% at the end of the prior quarter and down from 100% at the end of the year ago quarter.

繼續投影片6。截至9 月30 日，我們的存款總額為157 億美元，環比增長1%，反映出主要在貨幣市場和儲蓄帳戶的客戶存款環比增長3%，部分被368 美元的存款額所抵消。經紀定期存款減少萬元。增加核心存款是公司的首要任務，第三季我們的第一線工作取得了優異的成績。截至 9 月 30 日，我們的總貸存比率為 91%，低於上一季末的 95%，也低於去年同期末的 100%。

Moving on to Slide 7. At September 30, our loan portfolio was $14.3 billion, a decrease of 4% quarter-over-quarter, reflecting our prudent approach to loan growth and an intentional decrease in mortgage warehouse lending. Mortgage warehouse lines declined $126 million in the third quarter to $65 million at September 30, 2023. We are in the process of winding down this business. In addition, payoffs and paydowns in a high interest rate environment continued to hamper loan growth.

轉到投影片 7。截至 9 月 30 日，我們的貸款組合為 143 億美元，環比下降 4%，反映出我們對貸款成長的審慎態度以及有意減少抵押倉庫貸款。截至 2023 年 9 月 30 日，抵押倉庫系列第三季減少了 1.26 億美元，至 6,500 萬美元。我們正在逐步結束這項業務。此外，高利率環境下的還款和還款繼續阻礙貸款成長。

On Slide 8 and 9, we provide more details on our commercial real estate loans, which are well diversified by property type and granular in size. The loan to values for these CRE properties are low across all segments, and the vast majority of these loans have full recourse with personal guarantees. The weighted average LTV of our total CRE portfolio was 45% at September 30, 2023. Office commercial real estate of $455 million represented just 3% of total loans with no central business district exposure.

在幻燈片 8 和 9 中，我們提供了有關商業房地產貸款的更多詳細信息，這些貸款按房地產類型和規模進行了充分多元化。這些商業房地產物業的貸款價值在所有細分市場中都很低，而且這些貸款中的絕大多數都具有個人擔保的完全追索權。截至 2023 年 9 月 30 日，我們的 CRE 投資組合的加權平均 LTV 為 45%。辦公室商業房地產為 4.55 億美元，僅佔貸款總額的 3%，不涉及中央商務區。

With that, I will ask Julianna to provide additional details on our financial performance for the third quarter. Julianna?

接下來，我將要求朱莉安娜提供有關我們第三季度財務業績的更多詳細資訊。朱莉安娜？

Thank you, Kevin. Beginning with Slide 10. Our net interest income totaled $135 million for the third quarter of 2023, up 4% from the second quarter driven by a 13 basis point expansion in our net interest margin to 2.83%. The linked quarter increase in our net interest income and expansion of our net interest margin was driven by higher yields on interest-earning assets, a reduction in average borrowings and debt and an increase in the average volume of interest-earning cash and deposits at other banks, partially offset by a higher cost of interest-bearing deposits and a reduction in average loan balances. In the third quarter, we executed on $1 billion of 1-year forward start [receive] fixed pay float swaps that have a 3-year term and will go into effect midyear next year and continuing on after that.

謝謝你，凱文。從投影片 10 開始。2023 年第三季度，我們的淨利息收入總計 1.35 億美元，比第二季度成長 4%，原因是我們的淨利差擴大了 13 個基點，達到 2.83%。我們的淨利息收入環比增長和淨息差擴大是由於生息資產收益率上升、平均借款和債務減少以及生息現金和其他存款平均數量增加所推動的。銀行的損失被計息存款成本上升和平均貸款餘額減少部分抵消。在第三季度，我們執行了 10 億美元的 1 年期遠期啟動[收到]固定薪酬浮動掉期，期限為 3 年，將於明年年中生效並在此後繼續。

Moving on to Slide 11. Our average loans of $14.6 billion decreased 4% linked quarter. The average yield on our loan portfolio increased to 6.27%, up 28 basis points in Q3. Our average deposits of $15.7 billion were essentially stable, decreasing by only $45 million in the quarter. The average cost of deposits increased to 2.98%, up 19 basis points from the second quarter. The rate of change in the cost of deposits decelerated from the second quarter.

轉到投影片 11。我們的平均貸款為 146 億美元，季減 4%。第三季度，我們的貸款組合平均收益率增至 6.27%，上升 28 個基點。我們的平均存款為 157 億美元，基本上穩定，本季僅減少了 4,500 萬美元。平均存款成本上升至2.98%，較第二季上升19個基點。存款成本變動率較第二季放緩。

Moving on to Slide 12. Our noninterest income was $8 million for the third quarter compared with $17 million in the second quarter of 2023. Last quarter's noninterest income included a onetime $6 million cash distribution related to an investment in an affordable housing partnership and $2 million of gains on SBA loan sales. In the third quarter, we elected to retain SBA 7(a) production on balance sheet. Excluding these Q2 gains, noninterest income decreased $1 million quarter-over-quarter.

繼續看投影片12。第三季的非利息收入為800 萬美元，而2023 年第二季為1,700 萬美元。上季的非利息收入包括與經濟適用房屋合作夥伴關係投資相關的一次性600 萬美元現金分配和200 萬美元SBA 貸款銷售收益。第三季度，我們選擇在資產負債表上保留 SBA 7(a) 生產。除去第二季的收益，非利息收入較上季減少 100 萬美元。

Moving on to Slide 13. We continue to maintain expense discipline. Our noninterest expense of $87 million decreased 1% quarter-over-quarter, salaries and benefits expense of $51 million decreased 2%. Our efficiency ratio was 60.5% as of September 30, up slightly from 59.1% as of June 30. The change in the efficiency ratio was primarily due to the decrease in noninterest income.

轉到投影片 13。我們繼續維持費用紀律。我們的非利息支出為 8,700 萬美元，季減 1%，薪資和福利支出為 5,100 萬美元，較上季下降 2%。截至9月30日，我們的效率比率為60.5%，略高於截至6月30日的59.1%。效率比率的變化主要是由於非利息收入的減少。

Now moving on to Slide 14. I will review our asset quality. Our nonperforming assets at September 30, 2023, decreased 20% quarter-over-quarter to $62 million or 31 basis points of total assets. The linked quarter decrease reflects charge-offs of nonaccrual loans, payoffs and workouts, partially offset by new inflows. Net charge-offs for the 2023 third quarter totaled $31 million, which included an idiosyncratic full charge-off of $23.4 million related to a borrower that entered Chapter 7 liquidation in August 2023. As of June 30, 2023, we have recorded $9.6 million in impairment reserves related to this credit. For the third quarter, our provision for credit losses was $17 million, reflecting the increase in charge-offs.

現在轉到投影片 14。我將審查我們的資產品質。截至 2023 年 9 月 30 日，我們的不良資產環比下降 20%，至 6,200 萬美元，相當於總資產的 31 個基點。相關季度的下降反映了非應計貸款、付款和重組的沖銷，部分被新的流入所抵消。 2023 年第三季的淨沖銷總額為3,100 萬美元，其中包括與2023 年8 月進入第七章清算的借款人相關的2,340 萬美元的特殊全額沖銷。截至2023 年6 月30 日，我們已記錄960 萬美元與該信貸相關的減損準備。第三季度，我們的信貸損失撥備為 1,700 萬美元，反映了沖銷的增加。

At September 30, 2023, our allowance for credit losses was $159 million, representing 111 basis points of loans receivable. The allowance coverage as of June 30 was 116 basis points. However, excluding the $9.6 million of impairment reserves related to the idiosyncratic charge-off, the allowance coverage as of June 30 was 110 basis points. Year-over-year, allowance coverage is up from 104 basis points at September 30, 2022. Special mention loans at September 30, 2023, decreased quarter-over-quarter to $187 million. Substandard loans increased to $174 million during the same period. $21 million of the linked quarter increase in our substandard loans were completed multifamily residential projects. These projects are well secured and are awaiting the issuance of temporary certificates of occupancy by their local jurisdictions. Overall, we are not seeing any broader systemic issues within the loan portfolio.

截至2023年9月30日，我們的信貸損失準備金為1.59億美元，相當於應收貸款的111個基點。截至 6 月 30 日，準備金覆蓋率為 116 個基點。然而，排除與特殊沖銷相關的 960 萬美元減損準備金，截至 6 月 30 日的撥備覆蓋率為 110 個基點。與去年同期相比，準備金覆蓋率較 2022 年 9 月 30 日增加了 104 個基點。截至 2023 年 9 月 30 日的特別關注貸款環比下降至 1.87 億美元。同期次級貸款增加至 1.74 億美元。我們的次級貸款相關季度增量中有 2,100 萬美元來自已竣工的多戶住宅專案。這些項目的安全性良好，正在等待當地司法管轄區頒發臨時佔用證明。總體而言，我們在貸款組合中沒有看到任何更廣泛的系統性問題。

With that, let me turn the call back to Kevin.

接下來，讓我把電話轉回給凱文。

Thank you. Thank you, Julianna. Moving on to Slide 5 (sic) [15]. Today, we announced a strategic reorganization that is designed to enhance shareholder value over the long term. Accordingly, the company realigned its structure around lines of business and product delivery channels, optimized its production capacity and reduced headcount. Since its inception, Bank of Hope has made great progress in growing from a traditional community bank into a diversified regional bank. However, our industry continues to undergo secular changes and adapting our business model to meet these challenges is essential to long-term success.

謝謝。謝謝你，朱莉安娜。繼續看投影片 5（原文如此）[15]。今天，我們宣布了一項策略重組，旨在長期提高股東價值。據此，公司圍繞著業務線和產品交付管道調整了結構，優化了產能並減少了員工人數。自成立以來，希望銀行在從傳統的社區銀行發展成為多元化的區域銀行方面取得了長足的進步。然而，我們的行業不斷發生長期變化，調整我們的業務模式以應對這些挑戰對於長期成功至關重要。

With this reorganization, we will have 4 distinct business groups instead of our prior region-based structure, namely Retail Banking, Commercial Banking, Corporate and Institutional Banking and a Fee-based Business Group. This will enable us to expand our client relationships, empower deposit growth, enhanced revenue generation and run our bank more efficiently. As part of this transformation, we are planning to rationalize our branch network over the next 6 months, subject to customary notices and approvals and are winding down certain noncore businesses. We understand this action has a human component and thus, we have not made this decision lightly. We are making every effort to support those employees affected by the reorganization. These decisions are never easy and we deeply value their contributions to our franchise.

透過此次重組，我們將擁有 4 個不同的業務集團，而不是先前基於區域的結構，即零售銀行業務、商業銀行業務、企業和機構銀行業務以及收費業務集團。這將使我們能夠擴大客戶關係、促進存款成長、增加收入並更有效地經營我們的銀行。作為這項轉型的一部分，我們計劃在未來 6 個月內根據慣例通知和批准合理化我們的分支機構網絡，並逐步關閉某些非核心業務。我們知道這項行動涉及人為因素，因此我們不會輕易做出這項決定。我們正在盡一切努力支持那些受重組影響的員工。這些決定絕非易事，我們非常重視他們對我們特許經營的貢獻。

We believe these changes will benefit customers, employees and shareholders in many ways over the long term and allow us to sustainably expand our profitability. Upfront, we expect to realize more than $40 million in estimated annualized cost savings, largely related to the staffing reduction, the branch rationalization and operational process improvements. Related to the reorganization, we expect to recognize onetime charges of approximately $12 million in the fourth quarter of 2023.

我們相信，這些變化將從長遠來看使客戶、員工和股東在許多方面受益，並使我們能夠持續擴大獲利能力。首先，我們預計每年可節省超過 4,000 萬美元的成本，這主要與人員減少、分公司合理化和營運流程改善有關。與重組相關，我們預計將在 2023 年第四季確認約 1,200 萬美元的一次性費用。

In light of the organizational restructuring, we will dispense -- providing you with an outlook for the remaining 2 months of the year, and we will provide a full year outlook for 2024 when we report earnings in January.

鑑於組織重組，我們將向您提供今年剩餘 2 個月的展望，並在 1 月份報告收益時提供 2024 年全年展望。

With that, we would be happy to take your questions and add any additional color as requested. Operator, please open up the call.

因此，我們很樂意回答您的問題並根據要求添加任何其他顏色。接線員，請接通電話。

(Operator Instructions) Our first question comes from Chris McGratty from KBW.

（操作員說明）我們的第一個問題來自 KBW 的 Chris McGratty。

Kevin, I wanted to start with the strategic reorganization. In the past, you've talked about managing the company to an expense to asset ratio I'm interested kind of what the bogey will be for judging success? Will it be that (inaudible) metric? Will it be the ROE, the efficiency ratio, which has its limitations because of rates. I'm just trying to understand how we should be thinking about capturing this $40 million into the numbers?

凱文，我想從戰略重組開始。過去，您談到以費用與資產比率來管理公司，我感興趣的是判斷成功的忌諱是什麼？它會是那個（聽不清楚）指標嗎？是 ROE，即效率比，它因利率而有其限制。我只是想了解我們應該如何考慮將這 4000 萬美元計入數字中？

Well, the main purpose of this restructuring is obviously to obtain sustainable profitability on a longer-term basis. And we have been really trying to operate and run this company with the existing structures that we inherited from the predecessor organizations, and which turned out to be vulnerable in an economic situation where interest rate were fluctuating very rapidly at an unexpected pace. And we really took time to reassess the whole structure, how we can be a more profitable, more sustainable organization. And obviously, ROE and ROA and profitability efficiency ratio. All those metrics are very relevant, but the baseline is how we can provide better services to customers, how we can motivate our employees for a better opportunity in their career and how we will have a better return to our shareholders. It's all stakeholder consideration.

那麼這次重組的主要目的顯然是為了獲得更長期的可持續獲利能力。我們一直在努力利用從前身組織繼承下來的現有結構來經營和經營這家公司，但事實證明，在利率以意想不到的速度快速波動的經濟形勢下，這種結構很脆弱。我們確實花了時間重新評估整個結構，我們如何成為一個更有利可圖、更永續的組織。顯然，ROE和ROA與獲利效率之比。所有這些指標都非常相關，但基準是我們如何為客戶提供更好的服務，如何激勵員工在職涯中獲得更好的機會，以及如何為股東帶來更好的回報。這都是利害關係人的考慮。

And this is a very painful process in that, we have to let go a certain level of people, much higher than the level that we had in the past. But I think this is a fundamental change of this organization, which will ultimately bring to a better profitability over a long term in a very sustainable manner.

這是一個非常痛苦的過程，因為我們必須放棄一定程度的人，比我們過去的水準高得多。但我認為這是該組織的根本性變革，最終將以非常永續的方式帶來更好的長期獲利能力。

If I could ask a follow-up on the metric. Is this -- given the environmental pressures that you spoke about, is this to capture certain metrics, whether it's expense to asset or efficiency for moving further, maybe higher, or is it an outright reduction? I guess is your goal to outright reduce these metrics...

如果我可以詢問該指標的後續情況。考慮到您談到的環境壓力，這是為了捕捉某些指標，無論是資產費用還是進一步前進（也許更高）的效率，還是徹底減少？我猜你的目標是徹底減少這些指標...

Yes. The reduction reflects the realignment around our business -- lines of business, which minimize redundancies in both frontline and back-office support staff. In our prior region-based structure, A lot of resources have been fragmented and we have redundancies because the regions were kind of independent in their operations. And so as a result of this alignment, I think we will be a lot more effective bankers providing our customers with a more consistent level of excellence in service. So this is not just a cost savings measure. This is a more fundamental change in how we do our business and how we drive our profits from our businesses.

是的。此次裁員反映了我們業務部門的重組，最大限度地減少了一線和後台支援人員的裁員。在我們之前的基於區域的結構中，許多資源都被分散了，我們有冗餘，因為區域在運作上是獨立的。因此，由於這種一致性，我認為我們將成為更有效率的銀行家，為我們的客戶提供更一致的卓越服務水準。因此，這不僅僅是一項節省成本的措施。這是我們開展業務以及從業務中獲取利潤的方式的更根本性變化。

Maybe if I could get one more on capital, Kevin, we ask you every quarter about how you're thinking about capital return, certainly shrinking some of these businesses that are not core will free up some capital. How are you thinking about buybacks given the value of the stock and the outlook for '24?

也許如果我能再多了解一點關於資本的問題，凱文，我們每季都會詢問您對資本回報的看法，當然，收縮一些非核心業務會釋放一些資本。考慮到股票的價值和 24 世紀的前景，您如何考慮回購？

Yes. We believe capital preservation and capital expansion, they are very important in this current environment. In terms of shareholder return, I think we are maintaining a strong dividend payout ratio. And eventually, our robust capital base will give us opportunities to more effectively take advantage of growth opportunities going forward. So if you are asking more specifically where -- whether we will be beginning to share our -- beginning to repurchase our shares, I think that is not likely.

是的。我們相信資本保全和資本擴張在當前環境中非常重要。就股東回報而言，我認為我們保持著強勁的股息支付率。最終，我們強大的資本基礎將使我們有機會更有效地利用未來的成長機會。因此，如果你更具體地詢問我們是否會在哪裡開始回購我們的股票，我認為這不太可能。

And our next question comes from Matthew Clark from Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Matthew Clark。

First one for me around the reorg and that $40 million of savings you expect to extract. Can you give us a sense for the realization or timing of those savings and whether or not there might be some reinvestment necessary to realign these businesses? Trying to get a sense for whether or not that $40 million will fall to the bottom line or not?

我的第一個想法是圍繞重組以及您期望節省的 4000 萬美元。您能否讓我們了解這些節省的實現或時間安排，以及是否需要進行一些再投資來重新調整這些業務？想知道這 4000 萬美元是否會落入底線？

Matt, this is Juliana. Thank you for that question. A substantial amount of the cost savings that we are expecting of that $40 million, namely $34 million of that is going to come from the staff reduction that we executed last week. So that is already in place and will start to manifest itself in our operating results beginning now. Then in the next 6 months, we have plans to consolidate some branches and the cost savings from that will roll in over the first half of the year. And then lastly, some cost savings from process improvements will continue and be phased in throughout the whole of the next 12 months. So then the $40 million that we are providing to you on Slide 15, that's the fully loaded number.

馬特，這是朱莉安娜。謝謝你提出這個問題。我們預計這 4000 萬美元的成本節省很大一部分，即其中 3400 萬美元將來自我們上週執行的裁員。因此，這一點已經到位，並將開始在我們的經營業績中反映出來。然後在接下來的 6 個月裡，我們計劃整合一些分支機構，由此節省的成本將在今年上半年反映出來。最後，流程改善帶來的一些成本節約將持續下去，並在未來 12 個月內分階段實施。那麼我們在投影片 15 上提供給您的 4000 萬美元，就是滿載的數字。

That being said, Near-term actions around operational process improvements will continue to generate benefits that are not yet necessarily identified and quantified. And that's an important consideration to think about when you are reorganizing an organization and removing redundancies and streamlining operations for more efficient, simpler banking.

話雖如此，圍繞營運流程改進的近期行動將繼續產生尚未確定和量化的效益。當您重組組織、消除冗餘並簡化營運以實現更有效率、更簡單的銀行業務時，這是需要考慮的重要考慮因素。

And in terms of how much of this is going to drop to the bottom line, the second part of your question -- needs to be considered is that this organizational restructuring was designed to position our bank for high-quality, well-balanced growth regardless of cycle and to promote total relationship banking through collaboration between our business groups and the expansion of our fee-based business products. And to succeed, we need to continue to invest in our franchise, and we've talked to you in the past. So this isn't anything new about investments that we've been making in treasury management solutions. And for example, we recently opened a new branch in Bellevue, Washington. So investing in people, processes and technology to strengthen our bank is going to be ongoing.

至於其中有多少會下降到底線，你的問題的第二部分需要考慮的是，這次組織重組旨在使我們的銀行實現高質量、均衡的增長，無論循環，並通過我們的業務集團之間的合作和擴展我們的收費業務產品來促進全面關係銀行業務。為了取得成功，我們需要繼續投資於我們的特許經營權，我們過去曾與您交談過。因此，這對我們在資金管理解決方案方面的投資來說並不是什麼新鮮事。例如，我們最近在華盛頓州貝爾維尤開設了一家新分店。因此，我們將繼續對人員、流程和技術進行投資，以增強我們的銀行實力。

However, what is important to point out is that the investments that we have been making have not caused large fluctuations in our expenses because we do practice disciplined expense management, and we do not expect that approach to change. So to state firmly, the restructuring was not designed to extract cost savings just so we could redeploy into some new large scale, not yet unveiled projects. That's not the case. However, one thing that I would say for your modeling purposes is that the cost savings are improvement to your existing 2024 baseline, and we will share our outlook in January. And your 2024 baselines will naturally have assumptions around typical business-as-usual expense growth in an organization. And so that's where the cost savings would be applied to.

然而，需要指出的是，我們一直在進行的投資並沒有導致我們的費用大幅波動，因為我們確實實行嚴格的費用管理，而且我們預計這種方法不會改變。因此，堅定地說，重組的目的並不是為了節省成本，以便我們可以重新部署到一些新的、尚未公佈的大型專案中。事實並非如此。然而，出於建模目的，我要說的一件事是，成本節省是對現有 2024 年基準的改進，我們將在 1 月分享我們的展望。您的 2024 年基準自然會圍繞組織中典型的照常支出成長進行假設。這就是節省成本的地方。

Got it. Great. And then on the mortgage warehouse business, just remind us of the balance there at the end of the quarter. And then I think I can answer the question myself, but just the rationale to exit that business.

知道了。偉大的。然後關於抵押倉庫業務，請提醒我們季度末的餘額。然後我想我可以自己回答這個問題，但只是退出該業務的理由。

This is Peter, Matt. The balance is actually $65 million, and we've been continuing to wind that down. I think as you know, the mortgage business has had a big slowdown. And overall, I think pricing and risk profile of that line of business, we thought that winding down that business made more sense for us at this point.

這是彼得，馬特。餘額實際上是 6500 萬美元，我們一直在繼續減少這一餘額。我想如你所知，抵押貸款業務已經大幅放緩。總的來說，我認為該業務線的定價和風險狀況，我們認為目前結束該業務對我們來說更有意義。

Okay. And your SNC exposure. Can you just update us there on the size of that portfolio and whether or not you went through a recent exam, and whether or not there are any upgrades or any downgrades there?

好的。還有您的 SNC 曝光度。您能否向我們介紹一下該投資組合的規模以及您最近是否參加了考試，以及是否有任何升級或降級？

There were downgrades related to the Shared National Credit exam and the syndicated lending portfolio that we have, the Term Loan B type portfolio, it's approximately $300 million, and that's down from approximately $600 million at the beginning of the year.

與共享國家信用考試和我們擁有的銀團貸款投資組合（定期貸款 B 型投資組合）相關的評級被下調，約為 3 億美元，低於年初的約 6 億美元。

Okay. And then just last one for me on the deposit costs, if you spot rate at the end of September.

好的。如果你在九月底即期利率的話，最後一個是關於存款成本的。

One second. Let me get you the spot rates. 3.70% -- no, excuse me, 3.10% was the spot rate. That's for total deposits just to be clear.

一秒。讓我提供您即期匯率。 3.70%－不，對不起，3.10%是即期匯率。需要明確的是，這是總存款。

(Operator Instructions) And for our next question, we have Gary Tenner from D.A. Davidson.

（操作員說明）對於我們的下一個問題，我們有來自 D.A. 的 Gary Tenner。戴維森。

A couple of questions. First, in terms of the loan yields in the quarter, was there anything unusual that kind of drove some of that loan yield expansion this quarter? Or was it more of a mix change quarter-to-quarter?

有幾個問題。首先，就本季的貸款收益率而言，是否存在任何異常情況導致本季的部分貸款收益率擴張？還是每季的混合變化較大？

It's a combination of 3 things. The mix change quarter over quarter. The accumulation of interest rate increases and interest rates moving higher on our variable loan portfolio and interest rate -- interest income recoveries. And one thing I'd like to add to Matt's prior question that was into my answer. Our spot rate on deposits was 3.10% at the end of the quarter, up from 2.97% at the end of the prior quarter. So the spot moved 13 basis points quarter-over-quarter.

這是三件事的結合。混合情況逐季變化。我們的可變貸款組合和利率的利率上升和利率上升的累積—利息收入回收。我想在馬特之前的問題中補充一件事，這也是我的答案。本季末我們的存款即期利率為 3.10%，高於上一季末的 2.97%。因此，現貨價格較上季上漲了 13 個基點。

Julianna, on the interest income recoveries that you just mentioned. Could you quantify that, I guess, maybe relative to the prior quarter, how much of an impact that was?

朱莉安娜，關於你剛才提到的利息收入回收。我想，您能否量化一下相對於上一季的影響有多大？

This quarter, the interest income recoveries were $3 million.

本季度，利息收入回收為 300 萬美元。

Versus any meaningful amount in the second quarter?

與第二季的任何有意義的金額相比？

There wasn't a meaningful amount in the second quarter.

第二季的金額並不大。

Then in terms of the...

那麼就...

To your question in terms of kind of our net interest margin expansion, even with the net interest income recovery when we back that out, our net interest margin still expanded from the improvement on the liability side.

至於你問的關於我們的淨利差擴張的問題，即使我們取消淨利息收入恢復，我們的淨利差仍然因負債端的改善而擴大。

Okay. I appreciate that. And then on the swaps you mentioned, what is the received fixed rate on those?

好的。我很感激。然後，對於您提到的掉期，收到的固定利率是多少？

[3.67%] over on SOFR.

[3.67%] 超過 SOFR。

And we do have one more question from Chris McGratty from KBW.

KBW 的 Chris McGratty 也向我們提出了一個問題。

Just maybe Julianna, coming back to the margin, net interest income comments. Normalizing for the recoveries, I guess, maybe a little help on the trajectory of net interest income. It feels like a smaller balance sheet but more profitable, but interested in your comments about whether the trough might be in NII.

也許朱莉安娜，回到利潤率，淨利息收入評論。我想，復甦正常化可能對淨利息收入的軌跡有一點幫助。感覺資產負債表更小，但利潤更高，但對您關於低谷是否可能出現在 NII 的評論感興趣。

I think in terms of our net interest income expectations and net interest margin expectations, obviously, we will talk about 2024 in January. But -- and we are pleased with the improvement that we saw this quarter even with the -- outside of the interest income recovery. One thing I will remind you all about is that we do have some $1.8 billion of CDs maturing in the fourth quarter from a promotion that we ran last year. So that will put some downward pressure or upward pressure rather on the cost of deposits in the fourth quarter. So in terms of the trough in the NII and NIM we'll talk about that in January. It's kind of curve dependent, right, higher for longer versus when the interest rate -- will be coming in. But we're pleased with what happened this quarter and our frontline continues to execute excellently on growing customer deposits, which gives us the flexibility to run off higher cost funding. And net-net positions us to have a more profitable balance sheet.

我認為就我們的淨利息收入預期和淨利差預期而言，顯然我們會在1月談論2024年。但是，我們對本季看到的改善感到滿意，即使在利息收入復甦之外。我要提醒大家的一件事是，我們去年進行的促銷活動中確實有約 18 億美元的 CD 在第四季到期。因此，這將對第四季的存款成本帶來一定的下行壓力或上行壓力。因此，就 NII 和 NIM 的低谷而言，我們將在一月份討論這一點。這是一種曲線依賴性，對，與利率即將到來時相比，在更長時間內會更高。但我們對本季度發生的情況感到滿意，我們的前線繼續在不斷增長的客戶存款方面表現出色，這為我們提供了彈性跑掉更高成本的資金。淨淨值使我們能夠擁有更有利可圖的資產負債表。

And then on my prior answer just now, the fixed rate is [3.67%]. I said over SOFR, but I just left it at 3.67% . So that was for your clarification.

然後根據我剛才的回答，固定利率是[3.67%]。我說了超過 SOFR，但我只是將其保留在 3.67% 。這是為了你的澄清。

The $1.8 billion, Juliana that's coming up for renewal, what was the rate that was put on, I guess, probably last year sometime?

朱莉安娜，即將續約的 18 億美元，我想可能是去年的某個時候，利率是多少？

It was put on last year in the fourth quarter because these were 12-month CDs when it was put on. So the average rate that, that was put on was [4.43%].

去年第四季放的，因為放的時候是12個月的CD。因此，平均投放率為 [4.43%]。

Okay. And then maybe last one, the SBA loan sale comments. Do you have any thoughts on retaining versus selling near term?

好的。最後可能是 SBA 貸款出售評論。您對於短期內保留還是出售有什麼想法嗎？

At the moment, it is more profitable, more economically profitable to FDA loans.

目前，FDA 貸款的利潤更高，經濟上更有利可圖。

To be sure, maintain them, is that what you said?

當然，維護它們，是你說的嗎？

Yes. Yes, to maintain balance sheet. So we evaluate that from a perspective of profitability.

是的。是的，為了維持資產負債表。所以我們從獲利能力的角度來評估。

Our next question comes from David Chiaverini from Wedbush Securities.

我們的下一個問題來自 Wedbush Securities 的 David Chiaverini。

I wanted to follow up, I guess, indirectly on the NII question. In terms of balance sheet growth and loan growth, any kind of figures or informal guidance in that regard?

我想，我想間接地跟進 NII 問題。在資產負債表成長和貸款成長方面，有這方面的任何數據或非正式指導嗎？

No informal guidance at this time, we will provide guidance and outlook for 2024 in January, as you can imagine, we're going through our budgeting process, and we are going through a reorganization.

目前沒有非正式的指導，我們將在 1 月提供 2024 年的指導和展望，正如你可以想像的那樣，我們正在經歷預算流程，並且正在經歷重組。

Yes. Understood. And then shifting gears over to credit quality. Any other kind of areas. You mentioned that you're not seeing any systemic risk, which is great. But can you comment on any areas that you're paying any more particular attention to? I like the slide you laid out with the commercial real estate exposure and the low LTVs, but any other areas that you're focusing in on?

是的。明白了。然後轉向信用品質。任何其他類型的區域。您提到您沒有看到任何系統性風險，這很好。但您能評論一下您更特別關注的哪些領域嗎？我喜歡您展示的商業房地產曝光度和低 LTV 的幻燈片，但是您還關注其他領域嗎？

No. Actually, as you may know, we went through a pretty substantial derisking process over the last couple of years. particularly related to some of our CRE concentrations in hotel areas. So at this time, outside of sort of the one-off case that we had seen this quarter really, we're not seeing anything systemic.

不。實際上，如您所知，我們在過去幾年中經歷了相當大的去風險過程。特別是與我們在酒店區域集中的一些商業房地產相關。因此，目前，除了我們本季真正看到的一次性案例之外，我們沒有看到任何系統性的情況。

Got it. And that one-off case. I'm assuming that it was the shared national credit related to an oil company, but can you confirm what that was related to?

知道了。還有那個一次性案件。我假設這是與石油公司相關的共享國家信用，但你能確認這與什麼有關嗎？

It was that participation. I think it was generally covered with the lead bank. We do have a participation in that credit, and it was related to mountain -- gas industry. Yes.

正是這種參與。我認為它通常是由牽頭銀行涵蓋的。我們確實參與了該信貸，它與山區天然氣工業有關。是的。

(Operator Instructions) Right now, we have a follow-up question by Matthew Clark from Piper Sandler.

（操作員說明） 現在，我們有來自 Piper Sandler 的 Matthew Clark 提出的後續問題。

I just want to follow up on the office CRE portfolio and get an update on the reserve that you have against that portfolio and what amount is criticized?

我只想跟進辦公室 CRE 投資組合，以了解您針對該投資組合的儲備金的最新情況以及受到批評的金額是多少？

We'll look at the reserve level right now. But as you know, we have a very small office CRE portfolio. So I think over 99% of our portfolio -- or around 99% of it is past rated. We do not have any central business district exposure, and most of ours is really Class B in office properties in metropolitan areas. So we do understand the concern from an industry perspective, but really within our portfolio, we're not seeing any signs of concern at the moment. And do we have any reserves?

我們現在就來看看儲備金水平。但如您所知，我們的辦公室 CRE 投資組合非常小。所以我認為我們的投資組合中超過 99% 的——或者說大約 99% 的投資組合都已經過時了。我們沒有任何中央商務區的業務，而且我們的大部分辦公物業都是大都會地區的B級辦公室。因此，我們確實從行業角度理解了這種擔憂，但實際上在我們的投資組合中，我們目前沒有看到任何擔憂的跡象。我們有儲備嗎？

Well, the reserves in our total book are 111 basis points, and that covers all of our portfolios, office is very small. So the reserves that we have specifically on office is not a meaningful number, 111 basis point coverage. Is what I would go with for the -- thank you.

嗯，我們總帳面的準備金是 111 個基點，涵蓋了我們所有的投資組合，辦公室很小。因此，我們專門為辦公室準備的儲備金並不是一個有意義的數字，111 個基點的覆蓋範圍。這就是我想要的——謝謝。

And at this time, we have no further questions. And this will conclude this session. I would like to turn the conference back over to management for some closing remarks. Thank you.

此時，我們沒有其他問題了。本次會議到此結束。我想將會議轉回管理階層進行一些總結發言。謝謝。

Thank you. I am confident that our strategic reorganization announced today will enable us to better serve our customers, expand customer relationships and operate our bank more efficiently, benefiting all our stakeholders through sustainably improved profitability. Once again, thank you all for joining us today, and we look forward to speaking with you next quarter.

謝謝。我相信，今天宣布的策略重組將使我們能夠更好地服務客戶、擴大客戶關係並更有效地運營我們的銀行，透過持續提高盈利能力使所有利益相關者受益。再次感謝大家今天加入我們，我們期待下個季度與您交談。

And the conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Have a good day.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。祝你有美好的一天。