First Internet Bancorp (INBK) 2024 Q2 法說會逐字稿

Good day, everyone, and welcome to the First Internet Bancorp earnings conference call for the second quarter of 2024. At this time, all lines are in a listen only mode and following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, July 25th, 2024.

大家好，歡迎參加 2024 年第二季第一屆網路銀行財報電話會議。此時，所有線路均處於僅聽模式，在演示結束後，我們將進行問答環節。如果在通話期間您隨時需要立即協助，請按下接線員的零星鍵。本次通話錄音時間為 2024 年 7 月 25 日星期四。

Thank you, Lara. Good day, everyone, and thank you for joining us to discuss First Internet Bancorp's financial results for the second quarter of 2024. The company issued its earnings press release yesterday afternoon, and it's available on the company's website. In addition, the company has included a slide presentation that you can refer to during this call.

謝謝你，拉拉。大家好，感謝您與我們一起討論 First Internet Bancorp 2024 年第二季的財務業績。該公司昨天下午發布了收益新聞稿，可在公司網站上查看。此外，該公司還提供了幻燈片演示文稿，您可以在本次電話會議期間參考。

You can also access these slides on the website. Joining us today from the management team are Chairman and CEO, David Becker; and Executive Vice President and CFO, Ken Lovik. David will provide an overview, and Ken will discuss the financial results. Then we'll open up the call to your questions.

您也可以在網站上存取這些幻燈片。今天加入我們管理團隊的有董事長兼執行長 David Becker；執行副總裁兼財務長 Ken Lovik。大衛將提供概述，肯將討論財務結果。然後我們將打開電話詢問您的問題。

Before we begin, I’d like to remind you that this conference call contains forward-looking statements with respect to the future performance and financial condition of First Internet Bancorp that involve risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements.

在我們開始之前，我想提醒您，本次電話會議包含有關 First Internet Bancorp 未來業績和財務狀況的前瞻性陳述，這些陳述涉及風險和不確定性。各種因素可能導致實際結果與此類前瞻性陳述明示或暗示的任何未來結果有重大差異。

These factors are discussed in the company's SEC filings, which are available on the company's website. The company disclaims any obligation to update any forward-looking statements made during this call.

這些因素在公司向 SEC 提交的文件中進行了討論，這些文件可在公司網站上查看。本公司不承擔更新本次電話會議期間所做的任何前瞻性陳述的義務。

Additionally, management may refer to non-GAAP measures, which are intended to supplement, but not substitute for the most directly comparable GAAP measures. Press release, available on the website, contains the financial and other quantitative information to be discussed today, as well as a reconciliation of the GAAP to non-GAAP measures.

此外，管理階層可能會參考非公認會計準則衡量標準，這些衡量標準旨在補充但不能取代最直接可比較的公認會計準則衡量標準。網站上提供的新聞稿包含今天討論的財務和其他定量信息，以及 GAAP 與非 GAAP 指標的調節表。

At this time, I'd like to turn the call over to David.

這時，我想把電話轉給大衛。

Thank you, Larry. Good afternoon everyone, and thanks for joining us today as we discuss our second quarter 2024 results. To bring forward our commentary from last quarter, most of you will recall that three quarters ago we called the bottom. In late October, we predicted the third quarter of 2023 would mark the low point for net interest margin and net interest income. We also estimated net interest margin would turn higher from there regardless of whether or not and at what pace the Federal Reserve chose to start reducing short-term interest rates.

謝謝你，拉里。大家下午好，感謝您今天加入我們討論 2024 年第二季的業績。為了提出我們上個季度的評論，你們大多數人都會記得，三個季度前我們稱之為底部。10月下旬，我們預測2023年第三季將是淨利差和淨利息收入的低點。我們也估計，無論聯準會是否選擇開始降低短期利率以及以何種速度開始降低短期利率，淨利差都將從此上升。

Since then we have reported three consecutive quarters of double-digit earnings growth and improved profitability, driven in large part by the recovery in our margin and the growth in net interest income that we have projected. This quarter results continue to demonstrate the meaningful progress we have made repositioning the loan portfolio, optimizing our overall balance sheet mix and further diversifying our revenue base while keeping deposit costs in check and improving our interest rate risk profile.

從那時起，我們連續三個季度實現兩位數的盈利增長和盈利能力的提高，這在很大程度上是由我們的利潤率復甦和我們預計的淨利息收入增長推動的。本季業績繼續證明我們在重新定位貸款組合、優化整體資產負債表組合、進一步實現收入基礎多元化、同時控制存款成本並改善利率風險狀況方面取得了有意義的進展。

Starting with the highlights on Slide 3, I would like to discuss some additional key themes for the quarter. As I just noted, we continue to transition the composition of our loan portfolio and optimize both sides of the balance sheet. We have had strong deposit growth through the first half of the year and we were able to deploy a portion of that liquidity to pay down a significant amount of higher cost broker deposits while also funding net loan growth of $51 million, or over 5% on an annualized basis. The new funded loan origination yields were 8.88%, up 4 basis points from the first quarter and up 46 basis points from the second quarter of 2023.

從投影片 3 的要點開始，我想討論本季的一些其他關鍵主題。正如我剛才指出的，我們繼續轉變貸款組合的構成並優化資產負債表的兩側。今年上半年我們的存款成長強勁，我們能夠動用部分流動性來支付大量成本較高的經紀商存款，同時也為淨貸款成長 5,100 萬美元（或超過 5%）提供資金。新融資貸款發放收益率為8.88%，較一季上升4個基點，較2023年第二季上升46個基點。

The yield on the overall loan portfolio increased 10 basis points from the first quarter, while deposit costs only increased 4 basis points. As a result, net interest income was up almost 3% and fully taxable equivalent net interest margin was up 1 basis point over the prior quarter.

整體貸款組合收益率較一季上升10個基點，而存款成本僅上升4個基點。結果，淨利息收入增加了近 3%，全額應稅等值淨利差比上一季增加了 1 個基點。

Compared to the third quarter of last year when we believe these metrics hit their low, net interest income for the second quarter was up 23% and net interest margin has expanded by 27 basis points. With our emphasis on improving the composition of the loan portfolio and stabilizing deposit prices, we remain confident that net interest income and net interest margin will trend higher for the back half of this year, which is consistent with the guidance we issued earlier this year.

與去年第三季我們認為這些指標觸及低點時相比，第二季淨利息收入成長了 23%，淨利差擴大了 27 個基點。由於我們專注於改善貸款結構和穩定存款價格，我們對今年下半年淨利息收入和淨利差將呈上升趨勢充滿信心，這與我們今年稍早發布的指引一致。

Notably, I would remind you our estimates are based on short term rates remaining flat to the end of the year. If we do get a cut from the Fed this year and it's looking increasingly likely that we will that would only serve to improve our results.

值得注意的是，我想提醒您，我們的估計是基於到年底保持不變的短期利率。如果我們今年確實得到聯準會降息，而且看起來我們這樣做的可能性越來越大，那隻會有助於改善我們的表現。

Notably, I would remind you our estimates are based on short-term rates remaining flat through the end of the year. If we do get a cut from the Fed this year, and it's looking increasingly likely that we will, that would only serve to improve our results. The continued performance of our SBA business has been a key driver in our efforts to reposition the loan portfolio and diversify revenue streams. The team continued to perform exceptionally well, delivering strong production and another record quarter of gain on sale. Compared to the first half of 2023 year-to-date SBA originations were up 15% and solid loan volume was up 58%, demonstrating the tangible results in the investment we have made in providing growth capital to entrepreneurs and small business owners throughout the country.

值得注意的是，我想提醒您，我們的估計是基於到年底保持不變的短期利率。如果聯準會今年確實降息（而且看起來越來越有可能），那隻會改善我們的表現。我們的 SBA 業務的持續表現是我們重新定位貸款組合和實現收入來源多元化的關鍵驅動力。團隊持續表現出色，生產強勁，銷售收入再創新高。與 2023 年上半年相比，SBA 發放量增加了 15%，實體貸款量增加了 58%，這表明我們在為全國企業家和小型企業主提供成長資本方面所進行的投資取得了切實成果。

Small business pipeline continues to flourish and currently we are the sixth largest SBA 7A lender in the country year-to-date for the SBA's 2024 fiscal year. Congratulations to our SBA team on another standout quarter. It is a combination of all these efforts, solid loan growth, net interest income growth, net interest margin expansion and non-interest income powered by record gains on sale revenue that drove an 11% increase in total revenue over the prior quarter, a third consecutive quarter of positive operating leverage and continued improvement in operating efficiency and profitability.

小型企業通路持續蓬勃發展，目前我們是 SBA 2024 財年迄今全國第六大 SBA 7A 貸款機構。恭喜我們的 SBA 團隊在另一個季度表現出色。所有這些努力的結合，穩健的貸款增長、淨利息收入增長、淨息差擴大以及創紀錄的銷售收入增長推動的非利息收入，推動總收入比上一季度增長 11%，第三季度運營槓桿率連續一個季度為正，營運效率和獲利能力持續改善。

The growth of our SBA business has also helped us to further diversify our revenue base, with noninterest income comprising nearly one third of our total revenues for the first half of this year, compared to just under one quarter of total revenues for the comparable period last year.

SBA 業務的成長也幫助我們進一步實現營收基礎多元化，今年上半年非利息收入占我們總收入的近三分之一，而去年同期僅佔總收入的不到四分之一年。

Credit quality remains healthy, with nonperforming loans to total loans at 33 basis points and nonperforming assets to total assets at 24 basis points at quarter end, both of which were relatively consistent with the first quarter.

信貸品質維持健康，季末不良貸款佔貸款總額的比例為33個基點，不良資產佔總資產的比例為24個基點，兩者與第一季相對一致。

Net charge-offs remain relatively low at 14 basis points, mostly from the franchise finance and the small business portfolios.

淨沖銷仍相對較低，為 14 個基點，主要來自特許經營融資和小型企業投資組合。

To provide an update on a topic from last quarter’s call, we continue to monitor and work to reduce our Red Lobster exposure as a result of its Chapter 11 bankruptcy filing. We have reduced our outstanding balances by $3 million in the second quarter. The average loan to value of these loans remains low at 52% and importantly, we have not experienced any delinquencies related to these properties.

為了提供上季電話會議主題的最新情況，我們將繼續監控並努力減少 Red Lobster 根據美國破產法第 11 章申請破產保護而面臨的風險。第二季我們的未清餘額減少了 300 萬美元。這些貸款的平均貸款價值比仍然很低，為 52%，重要的是，我們沒有遇到與這些房產相關的任何拖欠情況。

As it relates to current industry concerns around office space, our exposure to office commercial real estate remains less than 1% of our total loan portfolio and does not include any central business district exposure.

由於它與當前行業對辦公空間的擔憂有關，我們對辦公商業房地產的曝險仍然不到我們總貸款組合的 1%，並且不包括任何中央商務區曝險。

A key measure of shareholder value creation is growth in the tangible value per share. Ours increased over 1% during the quarter and is up over 6% year-over-year. Since 2018 First Internet has grown tangible book value per share in excess of 50% compared to an average of around 30% for all publicly traded banks.

衡量股東價值創造的關鍵指標是每股有形價值的成長。我們的季度成長超過 1%，年成長超過 6%。自 2018 年以來，First Internet 每股有形帳面價值成長超過 50%，而所有上市銀行的平均帳面價值成長約為 30%。

We are among just a small handful of banks that have grown tangible book value per share in each of the past five years, which is also in part a testament to our prudent balance sheet management and operational discipline through a very challenging period for the banking industry.As a result of our continued improvement in operating performance, we reported net income of $5.8 million, up 11.5% and diluted earnings per share of $0.67, up 11.7% from the first quarter.

我們是過去五年中每股有形帳面價值不斷增長的少數銀行之一，這也在一定程度上證明了我們在銀行業充滿挑戰的時期堅持了審慎的資產負債表管理和運營紀律。持續改善，我們報告淨利潤為580 萬美元，較第一季增長11.5%，稀釋後每股收益為0.67 美元，較第一季增長11.7%。

Excluding 600,000 of non-reoccurring expenses, adjusted net income was $6.2 million and adjusted diluted earnings per share was $0.72 on an adjusted basis. This marks the third consecutive quarter of earnings growth in excess of 20%, but do not believe there are too many other banks that can make this statement, and we are well ahead of other reporting banks thus far this quarter with average growth rate in the low single digits.

扣除 60 萬的非經常性費用，調整後淨利為 620 萬美元，調整後稀釋每股收益為 0.72 美元。這標誌著連續第三個季度的盈利增長超過 20%，但不相信有太多其他銀行可以做出這樣的聲明，而且本季度迄今為止我們的平均增長率遠遠領先於其他報告銀行。位數。

Turning to Slide 4, I will spend a couple minutes discussing our lending activity during the quarter. We produced solid overall loan growth in the quarter, led by our commercial lending teams where balances were up $47 million from the first quarter, or over 6% on an annualized basis.

轉向幻燈片 4，我將花幾分鐘討論本季我們的貸款活動。在商業貸款團隊的帶領下，本季我們的整體貸款成長強勁，餘額較第一季增加 4,700 萬美元，按年化計算成長超過 6%。

Consistent with prior quarters, we produced growth in investor, commercial real estate, small business and franchise loans. Our construction team had another solid quarter originating over $115 million of new commitments, while quarter end balances were impacted by early paydowns. Average construction loan balances were up 16% compared to the first quarter as borrowers drew on existing lines to fund their projects.

與前幾季一致，我們在投資者、商業房地產、小型企業和特許經營貸款方面實現了成長。我們的施工團隊又迎來了一個穩健的季度，新承諾金額超過 1.15 億美元，而季末餘額則受到提前付款的影響。由於借款人利用現有額度為其項目提供資金，平均建築貸款餘額較第一季增加 16%。

At quarter end, total unfunded commitments in our construction line of business were $529 million. Borrows on these lines in the upcoming months will play a meaningful role in the continued shift of our loan portfolio towards higher yielding variable rate loans. Additionally, the construction team sourced new deals in investor commercial real estate as those balances increased $60 million during the quarter. However, one particular larger deal closed very late in the quarter, therefore had very little benefit to interest income for the quarter, yet was fully reserved for in the provision for loan losses.

截至季末，我們建築業務領域的無資金承諾總額為 5.29 億美元。未來幾個月，這些貸款將在我們的貸款組合繼續轉向更高收益的可變利率貸款方面發揮有意義的作用。此外，建築團隊還為投資者商業房地產尋找新交易，該季度餘額增加了 6,000 萬美元。然而，一項規模較大的交易在本季度很晚才完成，因此對本季的利息收入幾乎沒有什麼好處，但卻完全保留在貸款損失撥備中。

On the consumer side, balances were up modestly as new originations in our specialty consumer channels rebounded from the seasonal low during the winter months. We focus on super-prime borrower in our consumer lending and rates on new production were in the mid-8% range, consistent with the first quarter. Furthermore, delinquencies in these portfolios remain low at just 1 basis point of total loans.

在消費者方面，隨著我們的專業消費管道的新產品從冬季的季節性低點反彈，餘額略有增加。我們的消費貸款重點關注超級優質借款人，新產品利率處於 8% 的中間範圍，與第一季一致。此外，這些投資組合的拖欠率仍然很低，僅佔貸款總額的 1 個基點。

Before I turn the call over to Ken to cover our results in more detail, I want to provide an update on our fintech partnerships. We believe these partnerships are vital to the evolution of financial services. We are committed to fostering these relationships to develop innovative solutions to the market, while also enhancing shareholder returns.

在我將電話轉給肯以更詳細地介紹我們的結果之前，我想提供有關我們金融科技合作夥伴關係的最新資訊。我們相信這些合作關係對於金融服務的發展至關重要。我們致力於培養這些關係，為市場開發創新解決方案，同時提高股東回報。

As I mentioned last quarter, this isn’t a new concept for us, we have over 20 years of partnership experience, always with a focus on quality over quantity. Our total revenue for this line of business continues to grow and is up 300% for the first half of 2024 compared to the same period last year, and we expect to see further growth in the second half of the year.

正如我上季度提到的，這對我們來說並不是一個新概念，我們擁有 20 多年的合作經驗，並且始終注重品質而不是數量。我們該業務線的總營收持續成長，2024年上半年較去年同期成長300%，預計下半年將進一步成長。

To wrap up my comments, we continue to deliver improved performance in the second quarter. We entered the second half of the year with momentum and confidence, liquidity and credit quality remains strong and capital levels are sound.

作為我的評論的總結，我們在第二季度繼續提供更好的業績。下半年，我們充滿動力和信心，流動性和信用品質依然強勁，資本水準良好。

With the continued evolution of our loan portfolio mix and stabilized deposit pricing, we believe we are well positioned to continue to achieve higher earnings and improve profitability for the remainder of 2024 and beyond.

隨著我們貸款組合的不斷發展和存款定價的穩定，我們相信我們有能力在 2024 年剩餘時間及以後繼續實現更高的收益並提高盈利能力。

Finally, I want to personally thank the entire First Internet team for their hard work and contributions towards our strong results. Our success is driven by their unwavering commitment to our four core competencies, customer focus, teamwork, adaptability and initiative. Now I'll turn the call over to Ken for more details on our financial results for the quarter.

最後，我要親自感謝整個 First Internet 團隊的辛勤工作和為我們取得優異成績所做的貢獻。我們的成功源自於他們對我們四個核心能力的堅定承諾：以客戶為中心、團隊合作、適應性和主動性。現在我將把電話轉給肯，以了解有關本季度財務業績的更多詳細資訊。

Thanks, David.

謝謝，大衛。

As David covered the loan portfolio, let's turn to Slides 5 and 6 where I will cover deposits in more detail. While the average balance of deposits increased by over $185 million, or 4.7% during the second quarter, period end deposits were essentially flat with the quarter-over-quarter. Similar to the first quarter, we experienced continued growth in CDs and FinTech partnership deposits and used a portion of the liquidity provided by this growth to pay down $139 million of higher cost brokered deposit balances.

當 David 介紹了貸款組合時，讓我們轉向幻燈片 5 和 6，我將在其中更詳細地介紹存款。雖然第二季平均存款餘額成長超過1.85億美元，即4.7%，但期末存款與上季基本持平。與第一季類似，我們的存款證和金融科技合作夥伴存款持續成長，並利用這種成長提供的部分流動性來支付 1.39 億美元的較高成本經紀存款餘額。

Non-maturity deposits were up almost $55 million, or 2.8%, driven by increases in FinTech partnership deposits. Deposits from our FinTech partners, including those classified as broker deposits were up 34% from the first quarter and totaled $375 million at quarter-end.

由於金融科技合作夥伴存款的增加，非到期存款增加了近 5,500 萬美元，即 2.8%。我們的金融科技合作夥伴的存款（包括歸類為經紀商存款的存款）比第一季成長了 34%，季末總額達 3.75 億美元。

Additionally, these partners generated almost $8.5 billion in payments volume, which was up 40% from the volume we processed in the first quarter. Total FinTech partnership revenue was $582,000 in the second quarter, down slightly from the linked quarter, with the majority of this revenue consisting of recurring interest income, oversight and transaction fees. Related to CD activity during the quarter, total balances were up $91 million from the linked quarter, driven by continued strong demand in the consumer channel.

此外，這些合作夥伴產生了近 85 億美元的支付額，比我們第一季處理的交易額成長了 40%。第二季金融科技合作夥伴總收入為 58.2 萬美元，比上一季略有下降，其中大部分收入包括經常性利息收入、監督和交易費用。與本季的 CD 活動相關，受消費者通路持續強勁需求的推動，總餘額較上一季增加 9,100 萬美元。

We originated $404 million in new production and renewals during the second quarter at an average cost of 4.97% in a weighted average term of 19 months. These were partially offset by maturities of $345 million with an average cost of 4.88%. Looking forward, we have $397 million of CDs maturing in the third quarter of 2024 with an average cost of 5.05%, and $224 million maturing in the fourth quarter with an average cost of 5.03%.

第二季我們的新生產和續約費用為 4.04 億美元，19 個月的加權平均成本為 4.97%。這些被 3.45 億美元的到期日（平均成本為 4.88%）部分抵消。展望未來，我們有 3.97 億美元的 CD 將於 2024 年第三季到期，平均成本為 5.05%，還有 2.24 億美元的 CD 將在第四季到期，平均成本為 5.03%。

So assuming new production rates remain in line with those in the second quarter, we have reached an inflection point on CD pricing, which should contribute heavily to stabilizing and perhaps even reducing deposit costs in future periods under a higher for longer rate environment. Should the Fed begin to lower interest rates, there is potential for added benefit, but again, the commentary I provided is not dependent on that.

因此，假設新的生產力與第二季的生產力保持一致，我們已經達到了存款準備金定價的拐點，這應該會在長期利率較高的環境下，極大地有助於穩定甚至降低未來時期的存款成本。如果聯準會開始降低利率，則有可能帶來額外的好處，但同樣，我提供的評論並不依賴於此。

Moving to Slide 6, at quarter-end, total liquidity remains very strong as we had cash and unused borrowing capacity of $1.7 billion. As mentioned a moment ago, we deployed some of the liquidity provided by deposit inflows to pay down higher cost broker deposits as well as to fund loan growth and securities purchases during the quarter, with total loan balances up about $51 million. While deposit balances were flat quarter-over-quarter, the loans to deposit ratio increased modestly to 92.7% from 91.5% at the end of the first quarter. At quarter-end, our cash and unused borrowing capacity represents 150% of total uninsured deposits and 197% of adjusted uninsured deposits.

轉向幻燈片 6，在季度末，總流動性仍然非常強勁，因為我們擁有 17 億美元的現金和未使用的借款能力。正如剛才提到的，我們利用存款流入提供的部分流動性來支付成本較高的經紀人存款，並為本季度的貸款增長和證券購買提供資金，貸款餘額總額增加了約 5,100 萬美元。雖然存款餘額環比持平，但貸存比率從第一季末的91.5%小幅上升至92.7%。截至季末，我們的現金和未使用的借款能力佔未保險存款總額的 150%，佔調整後未保險存款的 197%。

Turning to Slide 7 and 8, net interest income for the quarter was $21.3 million and $22.5 million on a fully taxable equivalent basis, up 2.9% and 2.6%, respectively from the first quarter. The yield on average interest earning assets increased to 5.54% from 5.45% in the linked quarter, due primarily to a 10 basis point increase in the yield earned on loans and a 21 basis point increase in the yield earned on securities, partially offset by an eleven basis point decline in the yield earned on other earning assets. The higher yields on interest earning assets combined with the growth in average loan and securities balances produced solid top line growth in interest income, increasing over 4% compared to the linked quarter, factoring in growth in average interest bearing deposit balances and a modest increase in the cost of deposit funds.

轉向投影片 7 和 8，以完全應稅等值計算，本季淨利息收入分別為 2,130 萬美元和 2,250 萬美元，分別比第一季成長 2.9% 和 2.6%。平均生息資產收益率從上一季的 5.45% 上升至 5.54%，主要是由於貸款收益率上升 10 個基點，證券收益率上升 21 個基點，部分被其他盈利資產的收益率下降 11 個基點。生息資產收益率的提高，加上平均貸款和證券餘額的增長，帶來了利息收入的穩健增長，與上一季度相比增長了4% 以上，考慮到平均計息存款餘額的增長以及利息收入的小幅成長。

Net interest income was up almost 3% during the quarter, building on last quarter’s increase and further distancing us from the low point of the third quarter of 2023 as shown in the bar chart on Slide 7.

本季淨利息收入在上季成長的基礎上成長了近 3%，進一步遠離了 2023 年第三季的低點，如幻燈片 7 的長條圖所示。

Net interest margin for the first quarter was 1.67% and 1.76% on a fully taxable equivalent basis, both increases of 1 basis point from the first quarter. The net interest margin roll forward on Slide 8 highlights the drivers of change in fully taxable equivalent net interest margin during the quarter. One item I would like to point out on this chart related to the impact of deposits in the quarter is that the impact is really more a factor of volume than it is rate.

一季淨利差以完全應稅等值計算分別為1.67%及1.76%，均較第一季上升1個基點。投影片 8 上的淨利差前滾突顯了本季完全應稅等值淨利差變化的驅動因素。我想在這張圖表中指出與本季存款影響相關的一項，即影響實際上更多是數量因素而不是利率因素。

That is, as I mentioned earlier, average interest bearing deposits were up over $185 million during the quarter, whereas average loan balances were only up $44 million. The pace of increase in net interest income and net interest margin was down compared to the past two quarters due primarily to lower growth in average loan balances as we experienced both early payoffs and later than expected funding of some larger balanced loans.

也就是說，正如我之前提到的，本季平均計息存款增加了 1.85 億美元以上，而平均貸款餘額僅增加了 4,400 萬美元。與過去兩個季度相比，淨利息收入和淨利差的成長速度有所下降，主要是由於平均貸款餘額成長放緩，因為我們經歷了一些較大平衡貸款的提前還款和融資晚於預期。

Specifically, we saw paydowns of certain commercial and industrial and construction balances, all of which had attractive pricing, and we experienced a delay on a large investor commercial real estate deal that was supposed to fund early in the quarter but did not get closed until the last week of June.

具體來說，我們看到了某些商業、工業和建築餘額的支付，所有這些都具有有吸引力的定價，並且我們經歷了一項大型投資者商業房地產交易的延遲，該交易本應在本季度初籌集資金，但直到六月的最後一周。

In total, we estimate that these items negatively impacted net interest income by approximately $375,000 and net interest margin by 2 basis points. However, loan pipelines remain strong and with our focus on improving the composition of the loan portfolio and replacing lower yielding assets with higher yielding and variable rate production, we continue to forecast growth in total interest income throughout the rest of the year.

總的來說，我們估計這些項目對淨利息收入產生了約 375,000 美元的負面影響，對淨利差產生了 2 個基點的負面影響。然而，貸款管道仍然強勁，由於我們專注於改善貸款組合的組成並用較高收益和可變利率生產取代較低收益資產，因此我們繼續預測今年剩餘時間總利息收入將增長。

Currently, we expect the yield on the loan portfolio to be up in the range of 10 basis points to 15 basis points in the third quarter and another 15 basis points to 20 basis points in the fourth quarter.

目前，我們預期第三季貸款組合收益率將上漲10個基點至15個基點，第四季將再上漲15個基點至20個基點。

Looking at the graph on slide 8 that tracks our monthly rate on interest-bearing deposits against the Fed funds rate. You can see the stability in deposit costs over the last several months. So going forward with short-term rates stabilized and CD pricing expected to reach an inflection point here in the third quarter. We anticipate that interest bearing deposit costs should be relatively consistent with the second quarter, which should be a catalyst in driving continued net interest margin expansion.

請看投影片 8 上的圖表，該圖表追蹤了我們的帶息存款月利率與聯邦基金利率的關係。您可以看到過去幾個月存款成本的穩定性。因此，隨著短期利率穩定，存款準備金定價預計將在第三季達到轉折點。我們預計計息存款成本應與第二季相對一致，這應成為推動淨利差持續擴張的催化劑。

Turning to non-interest income on Slide 9, non-interest income for the quarter was $11 million, up $2.7 million, or 32% from the first quarter. Gain on sale of loans totaled $8.3 million for the quarter, up 27% over the first quarter and setting another quarterly record for our SBA team. Loan sale volume was $98.6 million, up 19% and rebounding from the seasonally low first quarter, while net gain on sale premiums saw a modest increase of 6 basis points.

轉向幻燈片 9 上的非利息收入，該季度的非利息收入為 1,100 萬美元，比第一季增加 270 萬美元，即 32%。本季貸款銷售收益總計 830 萬美元，比第一季成長 27%，為我們的 SBA 團隊再創季度記錄。貸款銷售量為 9,860 萬美元，成長 19%，從第一季的季節性低點反彈，而銷售保費淨收益小幅增加 6 個基點。

Other non-interest income was also up compared to the prior quarter, increasing $1.2 million due primarily to distributions received from fund investments. These increases were partially offset by a decline in net servicing revenue due to the fair value adjustment to the loan servicing asset.

其他非利息收入也較上一季成長，增加了 120 萬美元，這主要是由於從基金投資中收到的分配。這些成長被貸款服務資產公允價值調整導致的淨服務收入下降所部分抵銷。

Moving to Slide 10, non-interest expense for the quarter was $22.3 million, up $1.3 million from the first quarter. Included in our results for the quarter were almost $600,000 of non-recurring expenses, consisting mostly of costs related to terminated technology contracts and to a lesser extent, expense associated with the 25th anniversary of First Internet Bank. Excluding these items, non-interest expense totaled $21.8 million for the quarter, up $700,000, or 3.5% from the first quarter and relatively in line with our forecast.

轉向幻燈片 10，該季度的非利息支出為 2,230 萬美元，比第一季增加 130 萬美元。我們本季的業績包括近 60 萬美元的非經常性費用，其中主要包括與終止技術合約相關的費用，以及較小程度的與第一網路銀行成立 25 週年相關的費用。排除這些項目，本季非利息支出總計 2,180 萬美元，比第一季增加 70 萬美元，即 3.5%，與我們的預測相對一致。

Turning to asset quality on Slide 11. David covered the major components of asset quality for the quarter in his comments, so I will just add some commentary around the allowance for credit losses and the provision for credit losses. The allowance for credit losses as a percentage of total loans was 1.10% at the end of the second quarter, up 5 basis points from the first quarter.

轉向投影片 11 上的資產品質。大衛在他的評論中涵蓋了本季度資產品質的主要組成部分，因此我將僅就信貸損失準備金和信貸損失撥備添加一些評論。第二季末信用損失準備佔貸款總額的比例為1.10%，較一季上升5個基點。

The increase in the allowance for credit losses reflects the growth in the loan portfolio and the continued shift in the composition of the loan portfolio towards certain loan types with higher coverage ratios. The increase also reflected additional reserves related to small business lending, partially offset by the positive impact of economic data on forecasted loss rates in other portfolios.

信貸損失準備金的增加反映了貸款組合的成長以及貸款組合的構成持續向某些覆蓋率較高的貸款類型轉變。這一增長也反映出與小型企業貸款相關的額外準備金，但部分被經濟數據對其他投資組合預測損失率的正面影響所抵消。

The provision for credit losses in the second quarter was $4 million compared to $2.4 million in the first quarter. The provision for the second quarter was driven by loan growth and the changes in the composition of the loan portfolio, net charge offs and the additional reserves related to small business lending.

第二季的信貸損失撥備為 400 萬美元，而第一季的信貸損失撥備為 240 萬美元。第二季的準備金是由貸款成長以及貸款組合構成的變化、淨沖銷以及與小型企業貸款相關的額外準備金所推動的。

If you exclude the balances and reserves on our public finance and residential mortgage portfolios, which have lower coverage ratios, given their lower inherent risk, the allowance for credit losses represented 1.32% of loan balances. Furthermore, with minimal office exposure, we do not require the excess reserves around that asset class that many other banks have.

如果排除公共財政和住宅抵押貸款投資組合的餘額和準備金（由於其固有風險較低，因此覆蓋率較低），則信用損失準備金佔貸款餘額的 1.32%。此外，在辦公室風險最小化的情況下，我們不需要像許多其他銀行一樣針對該資產類別提供超額準備金。

Moving to capital on Slide 12, our overall capital levels at both the company and the bank remained solid. The tangible common equity ratio was 6.88%, a 9 basis point increase from the first quarter. If you exclude accumulated other comprehensive loss and adjust for normalized cash balances of $300 million, the adjusted tangible common equity ratio would be 7.59%. From a regulatory capital perspective, the common equity Tier 1 capital ratio remains solid at 9.47%.

轉向投影片 12 上的資本，我們公司和銀行的整體資本水準仍然穩固。有形普通股比率為6.88%，較一季上升9個基點。如果排除累計其他綜合損失並調整 3 億美元的正常化現金餘額，調整後的有形普通股權益比率將為 7.59%。從監理資本角度來看，普通股一級資本比率維持在9.47%的穩定水準。

Before I wrap up, I would like to provide some updates on our outlook for the remainder of 2024. As a reminder, our approach to forecasting this year is to assume that the Federal Reserve maintains a higher for longer outlook and does not lower the Fed Funds rate during 2024 despite the increasing commentary that rate cuts may happen as soon as September.

在結束之前，我想提供一些有關 2024 年剩餘時間展望的最新資訊。提醒一下，我們今年的預測方法是假設聯準會維持較高的長期前景，並且在 2024 年期間不會降低聯邦基金利率，儘管越來越多的評論稱降息可能最早在 9 月發生。

We still feel confident that annual earnings per share for the full year 2024 will be in the range of $3 per share. With regard to net interest income, as I mentioned earlier, we expect loan yields to continue to increase while interest bearing deposit costs should be relatively flat for the remainder of the year. With annual loan growth in the range of 7.5% to 10% for the year, we still expect annual net interest income to be up 20% for 2024, with fully taxable equivalent margin continuing to increase throughout the year and be in the range of 1.90% to 2% in the fourth quarter. Related to non-interest income and non-interest expense, our view is fairly consistent with our comments on last quarter's call.

我們仍然有信心 2024 年全年每股收益將在每股 3 美元的範圍內。關於淨利息收入，正如我之前提到的，我們預計今年剩餘時間貸款收益率將繼續上升，而計息存款成本應相對持平。由於全年貸款成長率介於 7.5% 至 10% 之間，我們仍預期 2024 年年度淨利息收入將成長 20%，全額應稅等值利潤率全年持續成長，在 1.90 範圍內第四季為2% 至2%。關於非利息收入和非利息支出，我們的觀點與我們對上季電話會議的評論相當一致。

With the combination of our SBA team continuing to deliver consistently higher origination activity and stabilization in secondary market pricing, our outlook remains extremely optimistic. And as a reminder, the expectations for higher fee revenue will be partially offset by higher expenses as we continue to add additional personnel in SBA and risk management, as well as make additional investments in technology and our risk management processes around our fintech partnerships program.

由於我們的 SBA 團隊繼續提供持續較高的發起活動和二級市場定價的穩定，我們的前景仍然非常樂觀。需要提醒的是，隨著我們繼續增加 SBA 和風險管理方面的人員，以及圍繞我們的金融科技合作夥伴計劃對技術和風險管理流程進行額外投資，較高的費用收入的預期將部分抵消。

With that, I will turn it back to the operator so we can take your questions.

這樣，我會將其轉回給接線員，以便我們回答您的問題。

Thank you, Ben. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchtone phone. You will hear a three-toned prompt acknowledging your should you wish to decline from the polling process, please press star followed by the number two. If you are using a speakerphone, please lift your handset before pressing any keys One moment, please feel free.

謝謝你，本。女士們、先生們，我們現在開始問答環節。如果您有疑問，請按按鍵式電話上的星號，然後再按數字 1。您將聽到三聲提示音，確認您是否希望拒絕投票過程，請按星號，然後按數字 2。如果您使用免持電話，請在按任何按鍵之前拿起聽筒 稍等片刻，請放心。

Our first question comes from the line of Tim Switzer from KBW. Go ahead, please.

我們的第一個問題來自 KBW 的 Tim Switzer。請繼續。

My first question is related to the reserve build this quarter. I mean, the credit performance overall looked pretty solid, and you guys provided a little bit of commentary about the reserve, and it was related to small business loans, all that. Could you provide just a little bit of more color, I guess, on what you're seeing underlying all that? And it was this kind of more driven by the loan growth or some qualitative reserves you guys decided to take.

我的第一個問題與本季的儲備建設有關。我的意思是，信貸表現總體看起來相當穩健，你們提供了一些關於儲備的評論，它與小型企業貸款有關，所有這些。我想，您能否就您在這一切背後所看到的內容提供更多的色彩？這更多是由貸款增長或你們決定採取的一些定性儲備所推動的。

It was probably a little bit of both. I would say, there is some – I mean, there's several dynamics at play here. One, you just – you had growth to begin with, and some of it too is just the migration of the portfolio. If you look year-over-year, some of our portfolios that have lower coverage ratios like residential mortgage, public finance, even healthcare finance, I mean, those balances are down and they're being replaced by construction and SBA and franchise that have higher coverage ratio. So some of that is just a migration there on a build there.

可能兩者都有一點。我想說，有一些——我的意思是，這裡有多種動力在起作用。第一，你一開始就有成長，其中一些也只是投資組合的遷移。如果你逐年觀察，我們的一些投資組合的覆蓋率較低，如住宅抵押貸款、公共財政，甚至醫療保健金融，我的意思是，這些餘額下降了，它們正在被建築業、SBA 和特許經營權所取代，這些投資組合的覆蓋率較低。所以其中一些只是在那裡建構的遷移。

And in SBA, too, we took a look at, we just looked at where our Q factors were and adjusted some of those upward just to start, just to be building some extra reserve there.

在 SBA 中，我們也進行了研究，我們只是研究了我們的 Q 因子在哪裡，並向上調整了其中一些因子，只是為了開始在那裡建立一些額外的儲備。

We also, as Ken stated in the last couple of days of the month, we have like $60 million in loans closed on the last two days of the month, so we had – even though they didn’t show up and offset any of the interest income and we took the full expense for the loan loss reserve on those on the final two days. So that kind of convoluted things a little bit. But part of it was timing, as Ken just said. Part of it was re-evaluation on the portfolios. And again, the change in mix, SBA, commercial, real estate stuff had much higher reserving factors, C&I than the public finance and the other portfolios.

正如肯在本月最後幾天所說，我們在本月最後兩天結清了約 6000 萬美元的貸款，因此我們——儘管它們沒有出現——並抵消了任何利息收入，我們承擔了最後兩天的貸款損失準備金的全部費用。所以這種事情有點複雜。但正如肯剛才所說，部分原因在於時機。其中一部分是對投資組合的重新評估。再說一次，組合、SBA、商業、房地產方面的變化比公共財政和其他投資組合具有更高的準備金係數、C&I。

Got you. Okay. That’s helpful. And then I wanted to ask about with your fintech BaaS initiative, and you’re getting very good growth on the deposit side. We’re seeing it come through with the revenue. How is the more intense regulatory environment changed at all? How you have decided to run the business? And has it altered your investment plans at all? Or has it either maybe caused more customers to have either more caution, or maybe even some potential customers come to you given the difficulties some competitors are having.

明白你了。好的。這很有幫助。然後我想問一下你們的金融科技 BaaS 計劃，你們在存款方面取得了非常好的成長。我們看到它隨著收入而實現。更嚴格的監管環境發生了什麼樣的變化？您是如何決定經營這家企業的？它是否改變了您的投資計劃？或者它可能會導致更多客戶更加謹慎，或者考慮到某些競爭對手遇到的困難，甚至可能有一些潛在客戶來找您。

You hit just about everything there, Tim. I think you can hit that’s going on in the BaaS space. Regulatory scrutiny is off the charts, no question about that. 90% of that we were already doing, they have. I will tell you, finally, during this last quarter, defined guidelines a lot better as to how we should interact with the fintechs and the banking-as-a-service product. So we have a much better roadmap than we’ve had from the beginning of time in this space, which we’re complying with. And I will tell you, our due diligence has stepped up because of some of the things that are going on in the industry. If there’s a common theme from some of our prospects, it’s, oh, my God, nobody ever asked us this question.

提姆，你幾乎擊中了那裡的一切。我認為您可以實現 BaaS 領域正在發生的事情。毫無疑問，監管審查是前所未有的。我們已經做了 90% 的事情，他們也已經做了。最後，我要告訴你的是，在最後一個季度，我們就如何與金融科技和銀行即服務產品互動制定了更好的指導方針。因此，我們擁有比這個領域從一開始就擁有的更好的路線圖，並且我們正在遵守該路線圖。我會告訴你，由於行業中正在發生的一些事情，我們的盡職調查已經加強。如果我們的一些潛在客戶有一個共同的主題，那就是，哦，天哪，從來沒有人問過我們這個問題。

Why are you guys digging in so deeply? And I’ve been in and around the software business, particularly software-as-a-service, my whole life, practically. So I understand where some of the pitfalls and issues are and where we’re digging in deeper. And as the market has changed, not to just pure growth, they want the fintechs to show a path to profitability that’s changed a lot of the focus and timing and play.

你們為什麼要挖這麼深？事實上，我一生都在從事軟體行業，特別是軟體即服務。因此，我了解其中存在一些陷阱和問題，以及我們正在深入挖掘的地方。隨著市場變化，而不僅僅是純粹的成長，他們希望金融科技公司能夠展現出一條獲利之路，改變了許多焦點、時機和玩法。

I don’t think, until the debt settles on the Synapse issues and everybody gets a true handle on what’s going on there, I don’t see a lot of tremendous growth of people taking risk until they can kind of figure out what blew up and what went wrong there. But as I said in my comments, we’ve got some phenomenally good quality fintechs and banking-as-a-service clients, and they’re all growing. We – $8 billion in ACH clearings, the lending side’s a little slower than the deposit side, but it’s catching up speed here quickly. So we got plenty on the plate. We’ll hit the numbers we had projected and we’re real comfortable where we’re at.

我認為，在 Synapse 問題的債務得到解決並且每個人都能真正掌握那裡正在發生的事情之前，我不會看到冒險的人會大幅增長，直到他們能夠弄清楚哪裡發生了爆炸以及出了什麼問題。但正如我在評論中所說，我們擁有一些非常優質的金融科技和銀行即服務客戶，而且它們都在成長。我們－80億美元的ACH清算，貸款方比存款方慢一點，但它正在快速追趕速度。所以我們有很多事情要做。我們將達到我們預計的數字，並且我們對目前的情況感到非常滿意。

You were spot on, on your kind of last comment. We are starting to get inquiries. As the dust is settling with Synapse and Evolve, people are looking for either a backup source or potentially a new source. We had a client, we were talking with Nicole and I just a couple days ago. They’re with another vendor. We’re getting about a third of their business. They’re thinking about moving – switching roles. We would get two-thirds, the other vendor would get a third. So everything’s on the table right now and we’re adjusting one by one as they come up.

你最後的評論說得很對。我們開始收到詢問。隨著 Synapse 和 Evolve 塵埃落定，人們正在尋找備用來源或潛在的新來源。我們有一個客戶，幾天前我們正在與妮可和我交談。他們和另一家供應商在一起。我們獲得了他們大約三分之一的業務。他們正在考慮搬家——轉換角色。我們將獲得三分之二，其他供應商將獲得三分之一。因此，現在一切都已擺在桌面上，我們會在出現問題時一一進行調整。

Okay. Yes, that’s interesting. I appreciate your thoughts on it. I’ll get back in the queue.

好的。是的，這很有趣。我很欣賞你對此的想法。我會回到隊列中。

Thank you. Our next question comes from the line of George Sutton from Craig-Hallum. Go ahead, please.

謝謝。我們的下一個問題來自 Craig-Hallum 的 George Sutton。請繼續。

Thank you. Ken, I was pleased to hear that you still seem comfortable with the $3 number for the year, even with a zero rate change environment. I just want to clarify anything that you’re building into expectations that may be different in the second half?

謝謝。Ken，我很高興聽到您仍然對今年 3 美元的數字感到滿意，即使是在零利率變化的環境下。我只是想澄清一下，您對下半年可能會有所不同的期望有何看法？

Not really, George. I mean, I think we still, again, as we’ve seen the SBA business grow, we’ve seen the non-interest income continue to go up. Obviously, there’s a little bit of offset on the expense spent side with that. But what SBA is doing is tracking and exceeding, as we had – even exceeding to what we’d forecast.

不完全是，喬治。我的意思是，我認為，當我們看到 SBA 業務成長時，我們仍然看到非利息收入持續成長。顯然，這方面的支出有一點抵消。但 SBA 正在做的是追蹤和超越，正如我們所做的那樣——甚至超過了我們的預測。

And on the non-interest income side as well, I mean, we continue to forecast that. That's just going to continue to stir, step up through the rest of the year. So in terms of that outlook, there's really not a lot has changed.

我的意思是，在非利息收入方面，我們將繼續預測這一點。這將繼續攪動，並在今年剩餘的時間裡繼續前進。因此，就這種前景而言，實際上並沒有太大變化。

One of the things that's helping that forecast, and I guess just our confidence level, George, is the bump up on the commercial real estate quoted that we have $500 million in the pipeline. So that's a big, big opportunity for us. A lot of that will start to actually be drawn down and put to work here in the second quarter of the year.

喬治，對這項預測有幫助的因素之一，我想就是我們的信心水平，就是商業房地產報價的上漲，我們有 5 億美元的籌建資金。所以這對我們來說是一個非常非常大的機會。其中很大一部分將在今年第二季開始實際使用並投入使用。

What we hope doesn't happen to us this past quarter, we had two or three that we were kind of anticipating, hanging on to for a few months that were bought in the secondary market. We're doing the construction side. We're not doing permanent finance on those products.

我們希望上個季度不會發生的事情不會發生在我們身上，我們有兩三個我們預期的東西，在二級市場上購買了幾個月。我們正在做施工方面的工作。我們不會為這些產品提供永久融資。

So there's still a good demand for, particularly warehouse refrigeration systems, et cetera, which is kind of the market we're playing in. So we lost a couple big assets. We were hoping to hang on to for a few more months. But we do have a great pipeline of activity coming up. We've grown that by over 25% just in the first half of the year compared to year end.

因此，仍然有很大的需求，特別是倉庫冷凍系統等，這就是我們正在參與的市場。所以我們失去了一些大資產。我們希望能再堅持幾個月。但我們確實有大量的活動即將進行。與去年年底相比，我們僅在今年上半年就成長了 25% 以上。

We already talked a little bit about the fintech opportunities continuing to grow, so there's a lot of positive in what we're doing today. And if the Fed makes a move and that's more and more dialogue on a daily basis, that would be just icing on the cake.

我們已經談到了金融科技機會的持續成長，因此我們今天所做的事情有很多積極的一面。如果聯準會採取行動，並且每天進行越來越多的對話，那將只是錦上添花。

So David, you keep building bigger and bigger goals for your SBA lending and you're now the six largest. I'm curious how how much bigger do you envision SBA could be for you?

大衛，您不斷為 SBA 貸款設定越來越大的目標，現在您是第六大目標。我很好奇您認為 SBA 能為您帶來多大的影響力？

I just met with the two leads of that department yesterday, and they said, okay, what kind of number are you going to throw out here? I think we can very easily get to that probably $500 million mark this year, maybe a little higher. Foresee possibilities in the next 18 months to 24 months. That could move up to a $1 billion a year. We really have no limitations. And at the current time, we're really spending a lot of time on the tech inside. If there's any one piece of our business where tech is a little bit outdated, it's in the SBA world. Nobody's changed anything.

昨天我剛剛見了那個部門的兩位領導，他們說，好吧，你要在這裡扔什麼樣的號碼？我認為今年我們可以輕鬆達到 5 億美元大關，甚至可能更高一點。預見未來 18 個月到 24 個月的可能性。這可能會增加到每年 10 億美元。我們確實沒有任何限制。目前，我們確實在內部技術上花費了大量時間。如果說我們業務中的某個部分的技術有點過時的話，那就是 SBA 領域。沒有人改變任何事。

Some of the subsystems are almost green screen capability. So we're bringing in some new tools. We're doing some pretty cool things with salesforce. We're doing some new things and spreading the loans. And so our efficiency is getting better day by day. And it's a situation over the last couple years, as we've had tremendous growth, we kind of throw bodies at it. Now we're starting to throw technology, so it's getting easier. And bodies that really understand the SBA business are kind of hard to find in the marketplace.

有些子系統幾乎具有綠幕功能。所以我們引進了一些新工具。我們正在與銷售人員一起做一些非常酷的事情。我們正在做一些新的事情並分散貸款。所以我們的效率一天比一天好。這是過去幾年的情況，隨著我們取得了巨大的成長，我們投入了許多精力。現在我們開始投入技術，所以事情變得更容易了。真正了解 SBA 業務的機構在市場上很難找到。

So we think the efficiencies we'll gain with the new tech will allow us to continue to push that number up. Are we going to double year-over-year like we have been? No, that's not going to happen. That would be kind of foolish on our part. We get out over our skis for sure, but picking up a couple hundred million a year in new productivity, that's very, very doable.

因此，我們認為新技術所帶來的效率將使我們能夠繼續提高這個數字。我們會像以前一樣逐年翻倍嗎？不，那不會發生。對我們來說，這有點愚蠢。我們肯定會擺脫滑雪板，但每年獲得幾億美元的新生產力，這是非常非常可行的。

Just one quick question for Ken. You mentioned the termination of some tech contracts under your one-time expenses. Can you just give us a sense of what kind of technology that is. And are you reducing capabilities or changing capabilities there? Thanks, guys.

我只想問肯一個簡單的問題。您提到終止一次性費用項下的一些技術合約。您能否讓我們了解一下這是什麼樣的技術？您是否正在減少或改變那裡的能力？謝謝，夥計們。

Yes, no, these actually relate to one of the platform partners we were working with in the fintech partnership space, where they just, it was a company that changed its business model and we weren't getting a lot of traction with them. So we just exited, exited the agreement and had to write-off some of our, some of the software investment in that. But has nothing to do with any of our internal bank tech or any of our investments in, account opening on the deposit side or small lending or anything like that.

是的，不，這些實際上與我們在金融科技合作領域合作的平台合作夥伴之一有關，他們只是一家改變了商業模式的公司，而我們並沒有得到他們的太多關注。所以我們就退出了，退出了協議，並且不得不註銷我們的一些軟體投資。但與我們的任何內部銀行技術或我們的任何投資、存款方開戶或小額貸款或類似事物無關。

The other big piece of it, George, was a product. We, we're in the queue from Fiserv, and we actually, over the almost years of installation on that, we found another alternative on a better product. We had a write down of that particular piece of software. They're working with us to give us a credit against future maintenance. So there's a chance that's going to come back as a positive to us. But, yes, as Ken said, we're not cutting back on any technologies. We had a third party vendor that just didn't make any sense to keep the relationship going so.

其中另一個重要部分，喬治，是一個產品。我們，我們在 Fiserv 的隊列中，實際上，在近幾年的安裝過程中，我們找到了更好產品的另一種替代方案。我們記下了那個特定的軟體。他們正在與我們合作，為我們提供未來維護的信用。因此，這有可能對我們產生正面的影響。但是，是的，正如肯所說，我們不會削減任何技術。我們有一個第三方供應商，但維持這種關係沒有任何意義。

Great. Thanks, guys. Appreciate it.

偉大的。謝謝，夥計們。欣賞它。

Thanks, George.

謝謝，喬治。

Our next question comes from the line of Nathan Race from Piper Sandler. Go ahead, please.

我們的下一個問題來自 Piper Sandler 的 Nathan Race。請繼續。

Hi, guys. Good afternoon. Thanks for taking the question. Just curious, just going back to the SBA discussion, how you guys are thinking about that revenue trajectory in the back half of the year. I imagine it may be difficult to replicate the production in 2Q, but just any thoughts on how you guys are thinking about kind of year-over-year growth in SBA revenue in 2024?

嗨，大家好。午安.感謝您提出問題。只是好奇，回到 SBA 的討論，如何看待下半年的營收軌跡。我想複製第二季的產量可能很困難，但你們對 2024 年 SBA 收入的年增率有何想法？

I think, obviously, we had a very, very strong quarter in this past quarter. And I think, right, our forecast right now for third quarter actually has that going up a little bit from there. Fourth quarter is sometimes a little bit softer there.

我認為，顯然，我們在上個季度的季度表現非常非常強勁。我認為，我們現在對第三季的預測實際上比那裡有所上升。第四季有時會有點疲軟。

So that’s probably not quite as high as the third quarter, but probably more in line. There may be a little bit higher than the second quarter. So I think as we’ve continued our origination volume, it’s not static throughout the year, it’s been continuing to grow.

因此，這一數字可能不如第三季那麼高，但可能更符合預期。可能會比第二季高一點。因此，我認為，隨著我們繼續保持我們的原創量，它全年並不是一成不變的，而是一直在持續增長。

And so we’re just continuing to see that on the revenue side. But I think we feel really good that we’ve gotten to a level where we can just maintain a consistently higher level of originations. And the team continues to look at and add high quality salespeople.

因此，我們只是繼續在收入方面看到這一點。但我認為我們感覺非常好，因為我們已經達到了可以持續保持較高水平的原創水平。團隊將繼續尋找並增加高素質的銷售人員。

Okay. That’s great to hear. And then maybe just turn to expenses. If we exclude some of the one time items in the quarter, kind of around 22, heading in the back half of the year, how you guys kind of think about the run rate trending in 3Q and 4Q?

好的。很高興聽到這個消息。然後也許就轉向開支。如果我們排除本季的一些一次性項目，例如下半年的 22 個左右，你們如何看待第三季和第四季的運行率趨勢？

It’s probably one of the things that you I like to remind you guys to factor in, though, is as that SBA continues to grow, there is a cost to that on the commission side. So we will see now, certainly it’s not dollar for dollar with revenue, but you will see the costs go up on the salaries and employee benefits line item. So you’re probably getting close to 22 to maybe a little bit over 22 in the fourth quarter as we continue to produce there.

不過，我想提醒大家考慮的事情之一可能是，隨著 SBA 的不斷發展，佣金方面會產生成本。所以我們現在會看到，當然這不是收入的一美元對一美元，但你會看到工資和員工福利項目的成本上升。因此，隨著我們繼續在那裡生產，第四季度可能會接近 22 甚至略高於 22。

Okay, got it. Very helpful. And then just any updated thoughts on the buyback? Obviously, the stock still trading below tangible book value, but you guys also grown organically. Pretty nice clips. So just curious to hear how you guys are thinking about that appetite these days?.

好的，明白了。非常有幫助。那麼關於回購有什麼最新的想法嗎？顯然，該股票的交易價格仍低於有形帳面價值，但你們也實現了有機成長。相當不錯的剪輯。所以只是想知道你們這些天對這種胃口有什麼看法？

Well, as we get closer and closer to 40, the trading side, we’re thinking less and less about the stock buyback side of things. Quite honestly, right now, we’re really kind of focused on getting the tier 1 capital back up above 7%, including the markdown on the security side. So unless rates really start to plummet on the Fed level, which brings down our mark-to-market, we probably won’t be doing any share buybacks in the third quarter. We’ll reevaluate when the fourth quarter comes around, but I wouldn’t forecast any for the third quarter.

好吧，隨著我們越來越接近 40 歲，在交易方面，我們對股票回購的思考也越來越少。老實說，目前我們確實專注於將一級資本恢復到 7% 以上，包括安全方面的降價。因此，除非聯準會的利率確實開始大幅下降，從而降低我們的市價計價，否則我們可能不會在第三季進行任何股票回購。我們將在第四季度到來時重新評估，但我不會對第三季做出任何預測。

Okay, got it. And then maybe, Ken, can you just remind us in terms of the margin impact with each 25 cut from the Fed, particularly as it relates to what you have that moves immediately within the loan book, and then what also reprices down kind of one for one within deposits?

好的，明白了。然後，Ken，您能否提醒我們聯準會每降息 25 次對利潤率的影響，特別是因為它與您在貸款帳簿中立即變動的內容以及隨後重新定價的內容有關存款內的一張？

Yes, let me – yes, there’s a couple different ways to look at this and maybe just to think about. On the deposit side, we got about $1.1 billion of deposits that will have 100% beta with a Fed rate cut. And then we probably got another, I call it 800 million to 900 million. That’s maybe a 40% to 50%.

是的，讓我——是的，有幾種不同的方式來看待這個問題，也許只是思考一下。在存款方面，我們獲得了約 11 億美元的存款，隨著聯準會降息，這些存款的貝塔係數將達到 100%。然後我們可能會得到另一個，我稱之為 8 億到 9 億。這可能是 40% 到 50%。

And then we have another 1.3 billion of CDs that mature over the course of the next year. So I think that provides a lot of earnings potential for rates if should and when and if the Fed begins to cut rates. If we kind of look at it over the course of a 12-month period, kind of an annualized 25 basis point cut, that could benefit net interest income as much as $2.8 million.

然後我們還有另外 13 億張 CD 將在明年到期。因此，我認為，如果聯準會應該、何時以及如果聯準會開始降息，這將為利率提供很大的獲利潛力。如果我們從 12 個月的角度來看，年化 25 個基點的削減，可能會使淨利息收入受益高達 280 萬美元。

Okay. Got it.

好的。知道了。

We’ve given you guys the kind of $700,000 figure prior, which was really, as Ken said, just looking at the stuff that’s pegged off Fed funds, we really didn’t bring in the CD portfolio to that mix. But as – it’s getting more and more likely, something could happen here in September. Ken’s team dug a little deeper here in the last few days, anticipating this question was coming up. And when we throw in that CD repricing that would happen over the next 12 months. And the 2.8 million can't split that into four equal quarters and have the impact.

我們之前已經給了你們 70 萬美元的數字，正如 Ken 所說，這實際上只是看看與聯邦基金掛鉤的東西，我們確實沒有將 CD 投資組合納入該組合中。但隨著可能性越來越大，九月可能會發生一些事情。肯的​​團隊在過去幾天在這裡進行了更深入的研究，預計會出現這個問題。當我們考慮到 CD 重新定價時，這將在接下來的 12 個月內發生。280 萬人無法將其平均分成四份並產生影響。

There'll be 300,000 to 400,000 in the first quarter, six to seven in the second quarter, et cetera, as the CDS roll over. That's where a big, big part of that impact is going to come in. So just pure cash and the money markets and stuff that are pegged to fed funds, that's worth 700,000 over the course of the year, and the rolling of the CDs will bring in another 2 billion or 2 million plus. So it's a big number and if we can get a couple, two or three rolls here yet this year or early next year, it can be very impactful in 2025.

隨著 CDS 展期，第一季將有 30 萬到 40 萬人，第二季將有 6 到 7 人，等等。這就是其中很大一部分影響將發揮作用的地方。因此，僅純現金、貨幣市場以及與聯邦基金掛鉤的東西，在一年中就價值 70 萬美元，而 CD 的滾動將帶來另外 20 億或 200 萬以上的收入。所以這是一個很大的數字，如果我們今年或明年初能在這裡買到幾卷、兩卷或三卷，那麼到 2025 年可能會產生非常大的影響。

Yes, definitely. On just one last housekeeping question on the updated thoughts on the tax rate going forward. I think last quarter we're talking somewhere in the 8% to 10% range?

是的，絕對是。關於最後一個有關未來稅率最新想法的內政問題。我認為上個季度我們討論的成長率是在 8% 到 10% 的範圍內？

Yes. I would say that's probably maybe as we kind of build income, as we get kind of into the fourth quarter with kind of that step up in earnings. That's probably not, maybe the 8% would be good in the – in the fourth quarter. I think right now we still get a pretty nice benefit from the tax – the tax benefit from the public finance portfolio. So, fortunately, from a tax perspective, that's been allowing us to keep the tax rate low, probably a 4% to 5% here in the next quarter is probably applicable, probably appropriate, and kind of just move that up as earnings go up.

是的。我想說，這可能是因為我們增加了收入，進入第四季度，收入增加。那可能不是，也許第四季 8% 就不錯了。我認為現在我們仍然從稅收中獲得了相當不錯的好處——公共財政投資組合的稅收優惠。因此，幸運的是，從稅收角度來看，這使我們能夠將稅率保持在較低水平，下個季度的稅率可能為4% 到5%，可能是適用的，可能是適當的，並且隨著收益的增加而提高稅率。

Okay, got it. And then sorry, just one last clarifying question, Ken, your guidance for loan yields to expand, I believe it was 10. I'm sorry, 15 to 20 basis points in the fourth quarter.

好的，明白了。抱歉，最後一個需要澄清的問題是，Ken，您對貸款收益率擴大的指導，我認為是 10。對不起，第四季15到20個基點。

Yes.

是的。

And, that does not include the impact of a what of a Fed rate cut on your floating-rate book.

而且，這還不包括聯準會降息對您的浮動利率帳簿的影響。

No, at all.

不，一點也不。

Okay, great. Sounds good. I appreciate the color. Thanks.

好的，太好了。聽起來不錯。我很欣賞它的顏色。謝謝。

Thanks Nathan, sir.

謝謝內森，先生。

Thank you. Our next question comes from the line of Brett Rabatin from Hovde Group. Go ahead, please.

謝謝。我們的下一個問題來自 Hovde Group 的 Brett Rabatin。請繼續。

Hey, guys. Good afternoon.

嘿，夥計們。午安.

Hey, Brett.

嘿，布雷特。

Good. I wanted to go back to the NII guidance of 20% for the full year. And when I look at the margin guidance of 1.90% to 2% by the fourth quarter, I assume the high end of that range and just a tiny bit of balance sheet growth, I'd be shy of that 20%. How much balance sheet growth? I know the balance sheet obviously been managed. You've had excess liquidity, but how much balance sheet growth there you guys looking for in the back half of the year?

好的。我想回到全年 20% 的 NII 指導值。當我看到第四季 1.90% 至 2% 的利潤率指引時，我假設該範圍的高端以及資產負債表的一點點增長，我將低於 20%。資產負債表成長多少？我知道資產負債表顯然得到了管理。你們的流動性過剩，但你們希望下半年的資產負債表成長多少？

I mean, you know, I think one of my comments earlier in the call was, you know, we're forecasting loan balances to be up, you know, 7.5% to somewhere between 7.5% to 10%. And you probably, you know, the model right now probably says it's closer to say nine ish than the 7.5%.

我的意思是，我認為我在電話會議早些時候的評論之一是，我們預測貸款餘額將上升 7.5%，達到 7.5% 至 10% 之間。你可能知道，現在的模型可能會說它更接近 9%，而不是 7.5%。

So that's what we're thinking about on the loan side. And yes, overall balance sheet growth is going to be somewhat less than that, just because cash balances will be lower. And there's probably a little bit of growth in securities balances as well. But you know, I guess maybe if you plug in the loan growth and and I don't know what that does for your average balances, but our average balances are probably up a little bit higher than perhaps what your model has.

這就是我們在貸款方面考慮的問題。是的，整體資產負債表的成長將略低於這個數字，因為現金餘額將會減少。證券餘額也可能有一點成長。但你知道，我想也許如果你插入貸款成長，我不知道這對你的平均餘額有什麼影響，但我們的平均餘額可能會比你的模型高一點。

Okay. And then just going to.

好的。然後就去。

And I guess I will say, sorry, Brett, one thing I'd probably just say is to go back to the timing. This is a topic it was on one of George's questions, and David talked about the loans that we had pay down in the quarter. So probably a little bit of there. There may be a little in between third quarter and fourth quarter, some timing difference. But I think by the time we get through the fourth quarter and feel really good about that and get to the end of the year, that 20% growth in NII is still what we're on track to do. And that margin guidance I gave you for the fourth quarter is exactly where we are today in our models.

我想我會說，對不起，布雷特，我可能只想說的一件事就是回到時間上。這是喬治的一個問題的主題，大衛談到了我們在本季度償還的貸款。所以可能有一點。第三季和第四季之間可能會有一些時間上的差異。但我認為，當我們度過第四季度並對此感到非常滿意並到年底時，NII 20% 的成長仍然是我們有望實現的目標。我給你的第四季度的利潤指導正是我們今天模型中的情況。

Okay, that's helpful. And then just wanted to go back to, I know you have the CDs maturing in the third quarter at 5.05%. Where are you guys being able to produce new CDs currently in terms of rate? And then just how do you fund the balance sheet growth from here? Is it going to be bass? Is it going to be CDs. Are you looking for growth in some of the lower cost pieces of the businesses.

好的，這很有幫助。然後我想回到，我知道你們的 CD 在第三季到期，利率為 5.05%。你們目前生產新 CD 的速度如何？那麼你該如何為資產負債表的成長提供資金呢？會是低音嗎？會是CD嗎？您是否正在尋求一些低成本業務的成長？

On the, like brand new, like new production coming in the door for CDs is actually being, right now coming in at about 4.85% . And that's across different, usually what we're seeing is, there's a big piece of that in one year, and then we're seeing people go out four and five years on that. So it's kind of a, call it a two-year average duration. And that's been pretty consistent now for about four or five months.

就 CD 而言，新產品即將上市，目前的成長率約為 4.85%。這是不同的，通常我們看到的是，一年內有很大一部分，然後我們看到人們花了四到五年的時間。所以這有點像，稱之為兩年平均持續時間。大約四、五個月以來，這種情況一直非常穩定。

The one thing that does impact that is the renewal rate. And sometimes that's a little bit hard to predict because not everybody renews. Sometimes we'll see a one-year CD that they call in and they want to renew, but they move to a five-year product or vice versa. So that piece is a little bit hard to predict. But new production coming in the door today is 4.85%.And I think what you'll continue to see on the deposit side, I think with the CDs have been growing, probably slowed down a little bit of growth there, but there's still production there.

確實影響這一點的一件事是續訂率。有時這有點難以預測，因為並不是每個人都會續訂。有時我們會看到他們要求續訂一年 CD，但他們會轉向五年產品，反之亦然。所以這件作品有點難以預測。但今天新產量為 4.85%。我認為你會繼續在存款方面看到，我認為隨著 CD 的增長，可能會減緩一點增長，但那裡仍然有生產。

We're still, we're usually at the top of the rate board, but we're competitive and we are seeing good production on the fintech partnership side. So I think again, that probably, probably going forward you might see a little bit more growth on the fintech side than the CD side. But maybe here in the near term, it might be a little bit balanced between the two.

我們通常仍然處於費率榜的頂端，但我們具有競爭力，而且我們在金融科技合作夥伴方面看到了良好的產出。所以我再次認為，未來你可能會看到金融科技方面比 CD 方面有更多的成長。但也許在短期內，兩者之間可能會有點平衡。

Okay. And then just lastly for me, thinking about the back half of the year, one of the one of the headwinds to your loan growth has been single-tenant lease financing, public finance, healthcare finance. Having having decreases, are you expecting those to stop declining from here or any thoughts on some of the pieces of the portfolio that have been shrinking?

好的。最後對我來說，考慮今年下半年，貸款成長的阻力之一是單一租戶租賃融資、公共財政、醫療保健融資。經歷了下跌之後，您是否預期這些股票會從現在開始停止下跌，或者對投資組合中一些一直在萎縮的部分有什麼想法？

Well, some of that is some of that by design a little bit because with the inverted yield curve doing longer-term, fixed-rate product hasn't made a whole lot of sense. And then you just have market competition to this single tenants, a good example. You have, you know, some other competitors in that space who are pricing deals, you know that don't make sense for us. I mean, we have been opportunistic there. Our team is still out working. And if we can get a good deal that that fits within our pricing parameters. We'll do it.

嗯，其中一些是有意設計的，因為隨著殖利率曲線倒轉的長期化，固定利率產品並沒有多大意義。然後你就會對這個單一租戶進行市場競爭，這是一個很好的例子。你知道，這個領域的其他一些競爭對手正在為交易定價，你知道這對我們來說沒有意義。我的意思是，我們在那裡一直是機會主義的。我們的團隊還在外面工作。如果我們能得到符合我們定價參數的好交易。我們會做的。

The same thing for public finance as well. It's a there's supply in the public finance world is down. The municipalities just aren't offering issuing as much debt as they have in the past because they're sitting on a lot of stimulus money. And so there just haven't been a lot of opportunities there.

公共財政也是如此。這是公共財政領域的供應下降。各市政府只是沒有像過去那樣發行那麼多債務，因為他們坐擁大量刺激資金。所以那裡沒有很多機會。

And then what is there, you know, it's really a lot of it's been going into the public market because people are starved by muni bonds and there's a lot of competition. So I think when we when and if knock on wood, we eventually get to the point where we have a normalized yield curve and there the activity in those those channels is picks up and is priced rationally, and I think we'll be back in those markets.

然後，你知道，確實有很多資金進入了公開市場，因為人們對市政債券感到飢餓，而且競爭也很激烈。因此，我認為，當我們敲敲木頭時，我們最終會達到一個標準化的殖利率曲線，這些管道中的活動將會回升，定價合理，我認為我們會回到正軌。

Okay. That's helpful. Thanks for all the color, guys.

好的。這很有幫助。謝謝你們所有的顏色。

Appreciate it. Thank, sir.

欣賞它。謝謝，先生。

Thank you. There seems to be no further questions at this time. I'd now like to turn the call back over to Mr. David Becker for final closing comments.

謝謝。目前似乎沒有其他問題了。現在我想將電話轉回給大衛貝克爾先生以徵求最後的總結意見。

Thank you there. Thank you for joining us on today's call.

謝謝你。感謝您參加今天的電話會議。

Given our strong first half and current pipelines, we're extremely optimistic about our outlook for the remainder of the year.

鑑於我們上半年的強勁表現和目前的產品線，我們對今年剩餘時間的前景非常樂觀。

Our commercial consumer teams are still working hard as Ken just to drive revenue growth, greater diversification. When you add in the stabilized deposit costs, we really have a clear pathway to finishing the year really strong and profitable.

我們的商業消費者團隊仍在像 Ken 一樣努力工作，以推動收入成長，實現更大的多元化。當你加上穩定的存款成本時，我們確實有一個明確的途徑來實現今年的強勁盈利。

The optimism is not considering Fed rate cuts, which when they do happen, could provide a really strong acceleration of growth in net interest income and net interest margin. As always as fellow shareholders, we remain committed to driving the improved profitability and enhance shareholder value. We thank you for your support your time today and wish you a good afternoon. Thanks, guys.

這種樂觀情緒並未考慮聯準會降息，當降息確實發生時，可能會帶來淨利息收入和淨利差成長的真正強勁加速。身為股東，我們一如既往地致力於提高獲利能力並提高股東價值。我們感謝您今天的支持，祝您下午好。謝謝，夥計們。

Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

謝謝。女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。