Old Second Bancorp Inc (OSBC) 2024 Q2 法說會逐字稿

Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Incorporated, second-quarter 2024 earnings call. On the call today are Jim Eccher, the company's Chairman, President, and CEO; Brad Adams, the company's COO and CFO; and Gary Collins, the Vice Chairman of our Board.

大家早安，感謝您今天參加 Old Second Bancorp, Incorporated 2024 年第二季財報電話會議。今天參加電話會議的是公司董事長、總裁兼執行長 Jim Eccher； Brad Adams，公司營運長兼財務長；和我們董事會副主席加里·柯林斯 (Gary Collins)。

I will start with a reminder that Old Second's comments today will contain forward-looking statements about the company's business strategies and prospects, which are based on management's existing expectations and the current economic environment.

首先我要提醒一下，老二今天的評論將包含有關公司業務策略和前景的前瞻性陳述，這些陳述是基於管理層的現有預期和當前的經濟環境。

These statements are not a guarantee of future performance, and results may differ materially from those projected. Management would ask you to refer to the company's SEC filings for a full discussion of the company's risk factors. The company does not undertake any duty to update such forward-looking statements.

這些陳述並非對未來績效的保證，結果可能與預期有重大差異。管理層會要求您參考該公司向 SEC 提交的文件，以全面討論該公司的風險因素。本公司不承擔更新此類前瞻性陳述的任何義務。

On today's call, we will also be discussing certain non-GAAP financial measures. These non-GAAP measures are described and reconciled to their GAAP counterparts in our earnings release, which is available on our website at oldsecond.com, on the homepage, and under the Investor Relations tab.

在今天的電話會議上，我們還將討論某些非公認會計準則財務指標。這些非 GAAP 指標在我們的收益報告中進行了描述並與 GAAP 指標進行了核對，該報告可在我們的網站 oldsecond.com、主頁和「投資者關係」標籤下取得。

Now I will turn it over to Jim Eccher.

現在我將把它交給吉姆·埃徹。

Okay. Good morning, everyone, and thank you for joining us. I have several prepared opening remarks and will give my overview of the quarter and then turn it over to Brad for additional details. I would like to conclude with certain summary comments and thoughts about the future before we open it up for questions.

好的。大家早安，感謝您加入我們。我準備了一些開場白，並將概述本季度，然後將其交給布拉德以獲取更多詳細資訊。在我們開始提問之前，我想以一些總結性的評論和對未來的想法作為結束語。

Net income was $21.9 million or $0.48 per diluted share in the second quarter of 2024, the return on assets was 1.57%. Second quarter 2024 return on average tangible common equity was 17.66% and the tax equivalent efficiency ratio was 53.29%. Second quarter 2024 earnings were negatively impacted by $3.8 million of provision for credit losses in the absence of significant loan growth, which reduced the after-tax earnings by $0.06 per diluted share.

2024年第二季淨利為2,190萬美元，或攤薄後每股收益0.48美元，資產報酬率為1.57%。2024年第二季平均有形普通股報酬率為17.66%，稅收等效效率為53.29%。在貸款沒有大幅成長的情況下，2024 年第二季的收益受到 380 萬美元信貸損失撥備的負面影響，這使稀釋後每股稅後收益減少了 0.06 美元。

However, despite this profitability, Old Second remains exceptionally strong, and balance sheet strengthening continues with our tangible equity ratio increasing by 35 basis points linked quarter to 9.39%.

然而，儘管有這種獲利能力，Old Second 仍然異常強勁，資產負債表繼續走強，我們的有形股本比率較上季增加了 35 個基點，達到 9.39%。

Common equity Tier 1 increased to 12.41% in the second quarter of 2024, and we remain -- we feel very good about profitability and our balance sheet positioning at this point. Our financials continue to be positively impacted by higher market interest rates, pre-provision net revenues remained stable and exceptionally strong.

2024 年第二季度，一級普通股增至 12.41%，我們仍然對目前的獲利能力和資產負債表定位感到非常滿意。我們的財務狀況持續受到市場利率上升的正面影響，撥備前淨收入保持穩定且異常強勁。

For the second quarter of 2024 compared to the prior year-like period, income on average earning assets decreased $663,000 or 0.9% while interest expense on average interest-bearing liabilities increased $3.2 million or 31.3%.

與去年同期相比，2024 年第二季度，平均生息資產收入減少 663,000 美元，即 0.9%，而平均帶息負債的利息支出增加 320 萬美元，即 31.3%。

The increase in interest expense is rate driven and primarily due to remixing and accepting pricing on certain commercial deposits. Our average other short-term borrowings and other borrowings were significantly less in the second quarter of 2024 compared to the prior-linked quarter and year-over-year quarter as our daily funding needs were reduced.

利息支出的增加是利率驅動的，主要是由於某些商業存款的重新混合和接受定價。由於我們的日常資金需求減少，2024 年第二季我們的平均其他短期借款和其他借款與上一季和同比季度相比顯著減少。

And in the second quarter of 2023, we retired $45 million of senior debt. These actions reduced interest expense on borrowings offsetting some of the growth and interest expense stemming from higher rates offered on deposits.

2023 年第二季度，我們償還了 4,500 萬美元的優先債務。這些行動減少了借款利息支出，抵消了存款利率上升帶來的部分成長和利息支出。

The second quarter 2024 reflected an increase in total loans of $7.2 million from the prior-linked quarter, primarily due to growth in commercial, lease, and construction portfolios, net of payoffs on a few large credits during the quarter. Comparably, loan growth in the second quarter of 2023 was $12.2 million and a net decrease of loans of $73.5 million in the first quarter of 2024.

2024 年第二季的貸款總額比上一季增加了 720 萬美元，這主要是由於商業、租賃和建築投資組合的成長（扣除本季一些大額信貸的償還）。相比之下，2023 年第二季的貸款成長為 1,220 萬美元，2024 年第一季貸款淨減少 7,350 萬美元。

The historical trends for our bank is loan growth in the second and third quarters of the year due to seasonal demand and business activities. 2023 was an anomaly as the savvy commercial customers realized interest rates were about to increase and sought funding prior to those market rate increases in late first quarter 2023.

我們銀行的歷史趨勢是，由於季節性需求和業務活動，今年第二季和第三季的貸款成長。 2023 年是一個反常的一年，因為精明的商業客戶意識到利率即將上漲，並在 2023 年第一季末市場利率上漲之前尋求資金。

By the second quarter of 2023, loan growth had tempered due to market rate increases in the late first quarter and second quarter of 2023. Currently, activity within our loan committee has picked up as pipelines are at their highest level in 18 months and up 3x from 12/31/23, providing optimism for loan growth in the second half of the year.

到 2023 年第二季度，由於 2023 年第一季末和第二季市場利率上漲，貸款成長放緩。目前，我們的貸款委員會內的活動有所回升，渠道數量達到 18 個月來的最高水平，較 2023 年 12 月 31 日增長了 3 倍，為下半年的貸款增長帶來了樂觀情緒。

Net interest margin increased slightly this quarter, driven by continuing higher rates on variable securities and loans, partially offset by higher funding costs. Loan yields reflected a 5 basis point increase during the second quarter of 2024 compared to the linked quarter and a 21 basis point increase year over year.

由於可變證券和貸款利率持續上升，本季淨利差略有上升，但部分被較高的融資成本所抵銷。2024 年第二季貸款收益率較上一季成長 5 個基點，年增 21 個基點。

Funding costs increased due to increases in both rates and growth and time deposit balances. The tax equivalent net interest margin was 4.63% for the second quarter compared to 4.58% for the first quarter of 2024 and 4.64% in the second quarter of 2023.

由於利率、成長和定期存款餘額的增加，融資成本增加。第二季的稅等淨利差為 4.63%，而 2024 年第一季為 4.58%，2023 年第二季為 4.64%。

The margins remained relatively stable in the year-over-year period due to the impact of rising rates on both the variable portion of the loan and securities portfolio as well as the deposit base and our short-term borrowing costs.

由於利率上升對貸款和證券投資組合的可變部分以及存款基礎和我們的短期借款成本的影響，利潤率比去年同期保持相對穩定。

The loan-to-deposit ratio was 88% as of June 30, 2024, compared to 86% last quarter and 85% as of June 30 of last year. As we have said, our focus continues to be balance sheet optimization. I'll let Brad talk about this in a moment.

截至2024年6月30日，貸存比率為88%，而上季為86%，截至去年6月30日為85%。正如我們所說，我們的重點仍然是資產負債表優化。稍後我會讓布拉德談論這個。

The second quarter of 2024 saw improving asset quality metrics and modern actions taken on substandard credits, continued remediation trends noted primarily since late last year. Our belief remains that the fourth quarter of 2023 represented an inflection point in our credit trends.

2024 年第二季度，資產品質指標有所改善，並對不合格信貸採取了現代行動，這是自去年年底以來持續出現的補救趨勢。我們仍然相信 2023 年第四季是我們信貸趨勢的轉捩點。

Old Second began substantially downgrading large amounts of commercial real estate loans including office and healthcare at the end of 2021 and accelerating through 2022. Substandard and criticized loans went from approximately $60 million or a little more than 1% of loans in the third quarter of '21 to a peak of nearly $300 million or 7% of loans in the first quarter of 2023.

Old Second 於 2021 年底開始大幅降級包括辦公大樓和醫療保健在內的大量商業房地產貸款，並在 2022 年加速降級。次級和批評貸款從 21 年第三季的約 6,000 萬美元（佔貸款的 1% 略多）增至 2023 年第一季的峰值，接近 3 億美元（佔貸款的 7%）。

At the end of the second quarter 2024, substandard and criticized loans are down to $187.4 million, which is approximately $15.9 million less than year-end 2023, and more than 40% below peak levels. The expectation remains for further improvement throughout the rest of the year.

截至 2024 年第二季末，次級和不良貸款降至 1.874 億美元，比 2023 年底減少約 1,590 萬美元，比最高水準低 40% 以上。預計今年剩餘時間將進一步改善。

Encouragingly, our special mention loans decreased more than 55% from one year ago and are at their lowest levels in over two years. We continue to expect realization of a relatively less costly resolution at a number of nonperformers in the near future and remain hopeful we can recover some of the losses realized in the second half of 2023.

令人鼓舞的是，我們的關注貸款比一年前減少了 55% 以上，處於兩年多來的最低水平。我們仍然預計在不久的將來能夠對一些不良企業採取成本相對較低的解決方案，並且仍然希望我們能夠在 2023 年下半年彌補部分損失。

Commercial real estate valuations are heavily dependent upon the market level of interest rates as the primary determinative cash flow for a given property. Movement in rates, such as we have seen, is substantial enough to significantly impair the equity positions in a large percentage of commercial real estate credits.

商業房地產估值在很大程度上取決於市場利率水平，作為特定房產的主要決定性現金流。正如我們所看到的，利率變動足以嚴重損害大部分商業房地產信貸的股權部位。

Additionally, the residual stress, brought upon by the pandemic, in commercial real estate office and healthcare has not abated. We believe we have been proactive and realistic in addressing commercial real estate loans facing deterioration from higher interest rates, declining appraisal values, and cash flow pressures.

此外，疫情對商業不動產、辦公大樓和醫療保健帶來的殘餘壓力並未減輕。我們相信，我們在解決因利率上升、評估價值下降和現金流壓力而面臨惡化的商業房地產貸款方面一直採取積極主動、務實的態度。

As we discussed last quarter on the call and consistent with our expectations, we recorded net charge-offs of $5.8 million in the second quarter compared to $3.7 million in the first quarter of 2024. One specific current period charge-off of $4.1 million on a previously allocated loan, one final charge-off of $1.5 million related to a note sale, and charge-offs related to a transfer to OREO of $550,000 were partially offset by approximately $217,000 of net recoveries during the second quarter of 2024.

正如我們在上個季度的電話會議上討論的那樣，與我們的預期一致，我們第二季度的淨沖銷額為 580 萬美元，而 2024 年第一季的淨沖銷額為 370 萬美元。本期對先前分配的貸款進行的一項特定沖銷為410 萬美元，與票據銷售相關的一項最終沖銷為150 萬美元，以及與轉移至OREO 相關的550,000 美元沖銷被約217,000 美元的淨額部分抵銷。

The good news is that criticized and classified loans continue to decline and the remainder of the portfolio remains well behaved. Continued stress testing has not raised any new red flags for us, and the bulk of our loan portfolio has transitioned and is seasoning into this higher rate environment.

好消息是，受到批評和分類的貸款繼續下降，而投資組合的其餘部分仍然表現良好。持續的壓力測試並沒有為我們帶來任何新的危險信號，我們的大部分貸款組合已經發生轉變，並且正在適應這種更高的利率環境。

We have said this before, but it's worth repeating that being short duration on the asset side has probably put us at the vanguard in terms of commercial real estate stress. We remain disappointed and did not offer a 7- or 10-year maturities of commercial real estate assets a few years ago.

我們之前已經說過這​​一點，但值得重複的是，資產方面的期限較短可能使我們在商業房地產壓力方面處於領先地位。我們仍然感到失望，幾年前沒有提供 7 年或 10 年期限的商業房地產資產。

The allowance for credit losses on loans decreased to $42.3 million as of June 30, 2024, or 1.1% of total loans from $44.1 million at March 31, 2024, which was also 1.1% of total loans. Unemployment and GDP forecasts used in future loss rate assumptions remained fairly static from last quarter.

截至2024年6月30日，貸款信用損失準備金從2024年3月31日的4,410萬美元減少至4,230萬美元，佔貸款總額的1.1%，佔貸款總額的1.1%。未來損失率假設中使用的失業率和 GDP 預測與上季相比保持相當穩定。

The change in provision level quarter-over-linked-quarter reflects the reduction in our allowance allocations on substandard loans, which largely relates to the 29% reduction in criticized assets since June 30, 2023. I think investors should know that with our continuing level of strong profitability, we will be aggressive in addressing weak credits and that we remain confident in the strength of our portfolios.

撥備水準環比變化反映了我們對次級貸款撥備分配的減少，這在很大程度上與自2023年6月30日以來批評資產減少29%有關。我認為投資者應該知道，隨著我們持續保持強勁的獲利水平，我們將積極解決信貸疲軟的問題，並且我們對投資組合的實力仍然充滿信心。

Noninterest income continued to perform well with growth noted quarter-over-linked-quarter, and wealth management fees, card-related income, and mortgage banking income, excluding the impact of mortgage servicing rights mark-to-market.

非利息收入持續表現良好，環比增長顯著，財富管理費、卡相關收入和抵押銀行收入（不包括抵押貸款服務權按市價計價的影響）也表現良好。

The death benefit of $893,000 was realized on one BOLI contract in the second quarter of 2024, with no life benefit in the linked quarter or prior year-linked period. Expense discipline continues to be strong with the second quarter of 2024 total noninterest expense of $364,000 less than the prior-linked quarter, primarily due to reductions in salaries and employee benefits and a gain on the sale of an OREO property. Our efficiency ratio continues to be excellent.

2024 年第二季度，一份 BOLI 合約實現了 893,000 美元的死亡撫卹金，相關季度或上一年相關期間沒有人壽撫卹金。支出紀律繼續嚴格，2024 年第二季度的非利息支出總額比上一季度減少了 364,000 美元，這主要是由於工資和員工福利的減少以及奧利奧房產銷售的收益。我們的效率仍然非常出色。

As we look forward, we are continuing on doing more of the same, which is managing liquidity, building capital and also building commercial loan origination capability for the long term. The goal is to continue to build towards a more stable long-term balance sheet, mix featuring more loans, and less securities in order to maintain the returns on equity commensurate with our recent performance.

展望未來，我們將繼續做更多相同的事情，即管理流動性、累積資本以及建立長期的商業貸款發放能力。我們的目標是繼續建立更穩定的長期資產負債表，增加貸款，減少證券，以保持與我們近期業績相稱的股本回報率。

I'll now turn it over to Brad for additional color.

我現在將其交給布拉德以獲取更多顏色。

Thank you, Jim. Net interest income decreased by $93,000 or 0.2% to $59.7 million for the quarter ended June 30 relative to the prior quarter of $59.8 million, down $3.9 million or 6.1% from the year ago-like quarter. Securities yields increased 16 basis points due to the variable portion of the portfolios and loan yields were 5 basis points higher than the second quarter compared to the first quarter of 2024.

謝謝你，吉姆。截至 6 月 30 日的季度，淨利息收入下降 93,000 美元或 0.2%，至 5,970 萬美元，上一季為 5,980 萬美元，較去年同期下降 390 萬美元或 6.1%。由於投資組合的可變部分，證券收益率增加了 16 個基點，貸款收益率比第二季度高 5 個基點，與 2024 年第一季相比。

Total yield on interest-earning assets increased 6 basis points linked quarter to 567 basis points. This was partially offset by a 15 basis point increase in the cost of interest-bearing deposits and a 2 basis point increase to interest-bearing liabilities in aggregate.

生息資產總收益率季增 6 個基點，至 567 個基點。這被計息存款成本增加 15 個基點和計息負債總計增加 2 個基點所部分抵銷。

The end result was a 5 basis point increase in the tax equivalent NIM to 4.63% compared to 4.58% last quarter. We believe this continues to be exceptional margin performance and surpassed our expectations modestly.

最終結果是，稅收等值淨利差 (NIM) 增加 5 個基點，達到 4.63%，而上季為 4.58%。我們相信，這仍然是出色的利潤率表現，並且略微超出了我們的預期。

Deposit flows this quarter continued to display signs of seasonality and overall stabilization from what we saw last year. Average deposits decreased $4.3 million linked quarter and period-end total deposits decreased $86.5 million from the prior quarter.

本季的存款流量持續顯示季節性跡象，且與去年相比整體趨於穩定。平均存款較上一季減少 430 萬美元，期末總存款減少 8,650 萬美元。

Deposit pricing in our markets remain exceptionally aggressive relative to the treasury curve and is still largely pricing of overnight borrowing level costs. Public funds provided a bit of a headwind this quarter as fixed income markets offer an attractive alternative. On an overall basis, we are continuing to add duration, albeit at a more modest pace than I would like.

相對於國債曲線，我們市場的存款定價仍然異常激進，並且仍然主要是隔夜借款水平成本的定價。由於固定收益市場提供了有吸引力的替代方案，公共基金本季帶來了一些阻力。總體而言，我們正在繼續增加持續時間，儘管速度比我希望的要慢。

In totality, marginal spreads remain unattractive at this point and Old Second does not feel the pressure to swell in order to overcome expected margin pressures.

整體而言，目前邊際利差仍不具吸引力，老二並沒有感受到為了克服預期邊際壓力而擴大的壓力。

Marginal returns on allocated equity remain poor for outsized growth and flat NII performance for the year is more difficult in the absence of loan growth, but we have made progress in extending duration and the outlook for loan growth is improving.

由於成長過快，分配股本的邊際回報率仍然較低，而且在貸款沒有增長的情況下，今年的NII表現持平更加困難，但我們在延長期限方面取得了進展，貸款增長的前景正在改善。

My position remains that markets continue to believe inflationary trends are far easier to kill than they actually are in real life. Rate cuts right around the corner is not a realistic expectation without significant declines in real demand and consumption.

我的立場仍然是，市場仍然相信通膨趨勢比現實生活中實際情況更容易消除。如果實際需求和消費沒有大幅下降，降息即將到來並不是一個現實的預期。

Regardless of deeply inverted yield curve ensures poor spreads in our industry, so we are continuing to focus on compounding book value and maximizing returns. For us, that means being careful with expenses and pricing risk appropriately. Credit protected securities have been a better avenue at times this year.

儘管殖利率曲線嚴重倒掛，但我們行業的利差仍然很差，因此我們將繼續專注於淨帳面價值複利和最大化回報。對我們來說，這意味著適當地謹慎對待費用和定價風險。今年，信用保護證券有時是更好的途徑。

The point is that we are being careful. And as a result, margin trends for the remainder of the year are expected to be relatively flat, maybe slightly down. If I'm wrong and a couple of rate cuts actually occur, we would lose a few basis points. Absolute NII growth from second quarter levels will be a function of our ability to find some loan growth.

關鍵是我們要小心。因此，今年剩餘時間的利潤率趨勢預計將相對持平，甚至可能略有下降。如果我錯了，並且確實發生了幾次降息，我們將損失幾個基點。相對於第二季的水平，NII 的絕對成長將取決於我們發現貸款成長的能力。

The loan-to-deposit ratio remains low at 87.9% and our ability to source liquidity from the securities portfolio remains. Old Second should continue to build capital as evidenced by the 35 basis point improvement in the TCE ratio over the linked quarter, which means we have added an astonishing 222 basis points TCE and $2.37 of tangible book value per share over the last 12 months.

貸存比仍然處於 87.9% 的低位，我們從證券投資組合中獲取流動性的能力仍然存在。Old Second 應該會繼續增加資本，這一點可以從上一季的TCE 比率提高35 個基點來證明，這意味著我們在過去12 個月裡增加了驚人的222 個基點TCE 和每股有形賬面價值2.37美元。

I expect at least two people will ask in a few moments what we are going to do with all this capital. It's a fair question. Sometimes I'm wrong, but I always try to be safe when that occurs.

我預計很快就會有至少兩個人問我們將如何利用這些資金。這是一個公平的問題。有時我會錯，但當這種情況發生時，我總是盡量保持安全。

Building capital today earns a nice return relative to the recent past, and I continue to have conviction in the belief that an opportunity to invest that excess capital is coming. M&A looks like it's starting to get interesting. If that does not come to fruition, we will return capital. A buyback is in place and is on the table. Dividend levels will be considered as well.

與最近相比，今天的資本累積獲得了不錯的回報，而且我仍然堅信投資多餘資本的機會即將到來。併購看起來開始變得有趣了。如果沒有實現，我們將返還資本。回購已經到位並已提上日程。股息水準也將被考慮。

Noninterest expense decreased $364,000 from the previous quarter, primarily due to a reduction in salaries and benefits due to a timing of officer incentive accruals and related payroll taxes paid in the first quarter as well as a small decrease in occupancy costs primarily due to seasonal maintenance and a small gain recorded on an OREO sale.

非利息支出比上一季減少了364,000 美元，主要是由於第一季度支付的官員激勵應計費用和相關工資稅的時間安排導致工資和福利減少，以及主要由於季節性維護和費用而導致的佔用成本小幅下降。

As noted last quarter, Quarterly wages and benefits are closer to $23 million, run rate going forward in the near term. Given the revenue performance, employee investment costs have been running high for a while now, but we will maintain the ability to dial back if conditions warrant.

正如上季所指出的，季度工資和福利接近 2,300 萬美元，近期運行率將保持不變。考慮到收入表現，員工投資成本一段時間以來一直處於高位，但如果條件允許，我們將保持回撤的能力。

With that, I'd like to turn the call back over to Jim.

說到這裡，我想把電話轉回給吉姆。

Okay. Thanks, Brad. In closing, we are confident in our balance sheet and the opportunities that are ahead. Our focus remains on assessing and monitoring risks within the loan portfolio and optimizing the earning asset mix in order to reduce our overall sensitivity to interest rates.

好的。謝謝，布拉德。最後，我們對我們的資產負債表和未來的機會充滿信心。我們的重點仍然是評估和監控貸款組合內的風險，並優化獲利資產組合，以降低我們對利率的整體敏感度。

Net interest margin trends are stable and income statement efficiency remains at record levels. The expectation for continuing efficiency gives me confidence we are well positioned to deliver a solid year.

淨利差趨勢穩定，損益表效率維持在創紀錄水準。對持續高效的期望讓我相信我們有能力實現堅實的一年。

That concludes our prepared comments this morning. So I'll turn it over to the moderator and open it up for questions.

我們今天早上準備好的評論到此結束。所以我會把它交給主持人並開放提問。

(Operator Instructions) Jeff Rulis, D.A. Davidson.

（操作員說明）Jeff Rulis，D.A.戴維森。

Thanks. Good morning. Brad, I'll stay off the capital question. But maybe on the credit side, just possibly an update on the credits we talked about either the Chicago office or California healthcare, just to try to get an update on timing and status, if we could.

謝謝。早安.布拉德，我不會談資本問題。但也許在信用方面，可能只是我們談論的芝加哥辦事處或加州醫療保健的信用的更新，只是為了嘗試獲得時間和狀態的更新，如果可以的話。

Sure. Well, I think that the big story this quarter, we had two major charge-offs. And really, that was the extent of the pain we took this quarter. They were both credits that have been on the horizon here for several quarters. One was the Chicago office building that we took a final charge out of $4 million.

當然。嗯，我認為本季的大事是我們有兩次重大的沖銷。事實上，這就是我們本季所承受的痛苦的程度。它們都是已經出現好幾季的作品。其中一棟是芝加哥辦公大樓，我們最終收取了 400 萬美元的費用。

And then the other was a note sale that we were able to execute on that required about $1.5 million additional charge. So we feel good about resolving those two.

另一個是我們能夠執行的票據銷售，需要大約 150 萬美元的額外費用。所以我們對解決這兩個問題感覺很好。

I think what investors should know that we've made significant headway reducing on nonaccrual loans this quarter with more than a dozen credits that we resolved. As far as office, obviously still a very important part of the portfolio that we're watching over. We only have $23 million now in office exposure, $9 million in Chicago and $14 million in the suburbs.

我認為投資者應該知道的是，本季我們在減少非應計貸款方面取得了重大進展，解決了十幾項信貸問題。就辦公室而言，顯然仍然是我們正在關注的投資組合中非常重要的一部分。我們現在只有 2300 萬美元的辦公室投資，900 萬美元在芝加哥，1400 萬美元在郊區。

We've got a reserve against the entire portfolio north of 5%. So if we feel like we've got our arms around that pretty well. Healthcare has been a slower remediation process, but we've seen no new red flags pop up in that portfolio and actually starting to see some improvement in occupancy and performance.

我們對整個投資組合的準備金超過 5%。因此，如果我們覺得我們已經很好地掌握了這一點。醫療保健的補救過程較慢，但我們沒有看到該投資組合中出現新的危險信號，並且實際上開始看到入住率和性能有所改善。

And Jim, just on your tone, it sounded as if the net charge-off outlook, barring surprises seems like the second half chunkier than the back half, and the expectation just to confirm, is that you'd expect losses to be more modest ahead?

吉姆，就你的語氣而言，聽起來好像淨沖銷前景，除非出現意外，下半年似乎比後半段更厚重，而剛剛確認的預期是，你預計損失會更加溫和前面？

Yeah, that's correct. I feel momentum is still very strong in credit remediation, but I don't see chunkier charges in the coming quarters anyway.

是的，這是正確的。我認為信用修復的勢頭仍然非常強勁，但無論如何，我認為未來幾季不會出現更大規模的收費。

And maybe hop into the pipeline pickup trends. I wanted to get your sense of -- is that more something you're doing in-house? Do you feel like it's just the market picking up or maybe a combo of both? And then the second part of that question is could you frame up what the second half looks like? Is that low or mid-single-digit growth on that?

也許還可以加入管道拾取趨勢。我想了解一下您的感受—這更多的是您在內部做的事情嗎？您覺得這只是市場回升的原因還是兩者兼具？然後這個問題的第二部分是你能描述下半場是什麼樣子嗎？這是低或中個位數的成長嗎？

Yeah. I mean we've been pretty disciplined, Jeff, I would say the first half of this year. We were not seeing the risk-adjusted spreads that we would have liked to have seen. So we were really on the sidelines. We've seen more opportunities.

是的。我的意思是，傑夫，我們今年上半年都非常有紀律。我們沒有看到我們希望看到的風險調整利差。所以我們真的處於觀望狀態。我們看到了更多的機會。

And what I'm encouraged about now is that the pipelines are broad-based along many of our verticals, and we got to get them across the finish line here, but I would expect hopefully, low to mid-single-digit growth for 3Q and 4Q this year.

現在令我感到鼓舞的是，我們的許多垂直領域的管道基礎廣泛，我們必須讓它們衝過終點線，但我希望第三季度能實現低至中個位數的增長和今年第四季度。

Okay. Appreciate it. I'll step back. Thanks.

好的。欣賞它。我會退後一步。謝謝。

Chris McGratty, KBW.

克里斯·麥克格拉蒂，KBW。

Terry McEvoy, Stephens.

崔麥克沃伊、史蒂芬斯。

Hi. Good morning, everyone.

你好。大家早安。

Good morning, Terry.

早上好，特里。

Good morning.

早安.

Maybe if I could just ask a question on the expense outlook for the second half of this year. The personnel and expenses overall came in a bit above what was discussed on the last call, and it would be curious with your outlook for the second half of the year.

也許我可以問一個有關今年下半年費用前景的問題。整體人員和費用略高於上次電話會議討論的內容，您對下半年的前景感到好奇。

Relatively flat. I thought I said $23 million last quarter. But -- so maybe a $400,000 above that level. Second half of the year is always about how your overall year performance is tracking relative to budget and how that works with incentive accruals.

比較平坦。我以為我說的是上個季度 2300 萬美元。但是——所以可能比這個水平高出 40 萬美元。下半年總是關於您的全年績效相對於預算的追蹤情況以及它如何與應計獎勵相結合。

So you can be wrong by $500,000 in any given quarter and still be pretty darn close. It's a horseshoes and hand grenades thing. But I don't see anything labor market conditions have improved. We've been able to hire who we wanted. I don't see any real surprises coming at us at this point. So I think we are where we are.

因此，在任何給定的季度中，您可能會誤差 500,000 美元，但仍然非常接近。這是馬蹄鐵和手榴彈的事。但我沒有看到勞動市場狀況有任何改善。我們已經能夠僱用我們想要的人了。我認為目前我們還沒有看到任何真正的驚喜。所以我認為我們現在所處的位置。

I'll say I'm broadly very happy with what expense trends have done over the last year and also over the last three years. It's no secret it's been a wildly inflationary time, and I feel like we've done a really good job keeping a lid on things.

我想說，我對去年以及過去三年的支出趨勢感到非常滿意。眾所周知，這是一個通貨膨脹嚴重的時期，我覺得我們在控制事情方面做得非常好。

And then there seems to be fears that when CRE loans mature, that's when the losses materialize. That wasn't obviously what happened last quarter. So when I look at the $25 million of maturities in Q3 and was it $40 million of Q4, are those loans built into the reserve today? And ultimately, how should I -- how are you thinking about potential loss content there?

然後，似乎有人擔心，當商業房地產貸款到期時，損失就會成為現實。上個季度發生的情況顯然並非如此。那麼，當我查看第三季的 2500 萬美元到期金額以及第四季度的 4000 萬美元到期金額時，這些貸款今天是否已計入準備金？最終，我應該如何——您如何考慮那裡潛在的損失內容？

Yeah. We've been cynical, depressed people on upcoming maturities for the better part of two years now. That's a function of why we were downgrading credits two years ago and felt like we were alone in doing so. There is no surprises coming, we have looked at maturities that are less than 24 months out for a while now. And we've been very cynical, depressing people that you wouldn't want to talk to at cocktail parties.

是的。在兩年來的大部分時間裡，我們對即將到期的債券都是憤世嫉俗、沮喪的人。這就是為什麼我們兩年前降低了學分，並且感覺我們是唯一這樣做的。這並不令人意外，我們已經觀察了 24 個月以內的到期日一段時間了。我們是非常憤世嫉俗、令人沮喪的人，你不想在雞尾酒會上與之交談。

I think that the bowling ball through a garden hose has been the preponderance of our industry to offer 7- and 10-year maturities, which Jim alluded to back in 2020 and 2021. That's not a game that we played in. So we're a short-duration asset shop, always have been. I believe we always will be. There's nothing coming at us that is either unexpected or outsized in terms of maturities.

我認為透過花園軟管打保齡球一直是我們行業的優勢，提供 7 年和 10 年期限，吉姆在 2020 年和 2021 年提到過這一點。那不是我們玩的遊戲。所以我們是一家短期資產商店，一直都是。我相信我們永遠都是。就期限而言，我們不會遇到任何意外或過大的事情。

Appreciate that. And then maybe one last one, Brad, I think you said M&A is starting to get interesting, might have been the quote there. So I don't mean to ask a capital question but have to take the bait on your statement there.

很欣賞這一點。然後也許是最後一個，布拉德，我想你說併購開始變得有趣，可能是那裡引用的。所以我並不是想問一個重要的問題，但我必須接受你的陳述。

Yeah. Our statements have been -- our strategy has been to build capital. I think that there are several reasons to do that. The first of which is that, at this point, greater than any point over the last 10 years is, the capital earns a nice return. The cost of funding is now 5.4% in the market. So a levered return on equity is pretty darn good, even if you're not using it at this point.

是的。我們的聲明是－我們的策略是累積資本。我認為這樣做有幾個原因。首先，目前資本獲得的回報比過去十年的任何時候都要高。目前市場融資成本為5.4%。因此，槓桿股本回報率非常好，即使您目前沒有使用它。

So it allows you to have a margin of safety. That margin of safety is also both economic based, is a recession around the corner, that's something people like to talk about. But it's also if times are difficult in our industry, which they have been with very low returns, some people might begin to throw in the towel.

所以它可以讓你有安全邊際。這種安全邊際也是基於經濟的，是經濟衰退即將來臨，這是人們喜歡談論的話題。但如果我們的產業遇到困難，報酬率很低，有些人可能會開始認輸。

We have capital flexibility to include cash in a deal, so you can balance accretion. I don't know whether a deal is going to happen for us. And I realize that's the question.

我們具有資本靈活性，可以在交易中包含現金，因此您可以平衡增值。我不知道我們是否會達成協議。我意識到這就是問題所在。

But I can tell you that if we do get an opportunity, we will be exceptionally disciplined on price. That hasn't changed. If we don't get an opportunity, as I said, we will return the capital.

但我可以告訴你，如果我們確實有機會，我們將在價格上特別嚴格。這一點沒有改變。如果我們沒有機會，正如我所說，我們將退還資金。

Understood. Thank you for taking my questions.

明白了。感謝您回答我的問題。

Yes, sir. Thank you.

是的，先生。謝謝。

Chris McGratty, KBW.

克里斯·麥克格拉蒂，KBW。

Chris, are you having trouble (inaudible)?

克里斯，你有麻煩嗎（聽不清楚）？

The optimization -- can you hear me now, Brad?

優化－布萊德，你現在聽得到我說話嗎？

Yes, I can.

是的，我可以。

All right. Cool. The optimization of the balance sheet was mentioned a couple of times in prepared remarks by you and Jim.

好的。涼爽的。您和吉姆在準備好的發言中多次提到了資產負債表的優化。

Yeah.

是的。

What's left to do? Obviously, hedging is probably hard in this environment because of the curve. But what's left to do? What's coming off the bond portfolio every month? Just help us a little bit on that.

還剩下什麼要做？顯然，由於曲線的原因，在這種環境下對沖可能很困難。但還剩下什麼要做呢？債券投資組合每月會發生什麼事？請在這方面幫助我們一點。

Well, we've had a lot come off the bond portfolio. The structure of the yield curve for the bulk of this quarter meant that we simply laddered it back out shore, which did offer a pickup in yield. What I'd like to see is steepening. I don't know -- I think the steepening is coming. I don't know whether it's recession driven with a short end falling or if it's things people become less pessimistic, and the long end picks up.

嗯，我們的債券投資組合已經很多了。本季大部分時間的殖利率曲線結構意味著我們只是將其逐步拉回岸外，這確實帶來了殖利率的回升。我希望看到的是陡峭的。我不知道——我認為陡峭即將到來。我不知道這是否是經濟衰退導致短端下跌，還是人們變得不那麼悲觀，長端回升。

If we can get a steepening, obviously, the latter will be better. If we can get that, then what we would do is take off aberration aggressively by selling variable securities and reduce the overall size of the bond portfolio with loan growth to more like a 15% level from a 20% level. That would be the ideal scenario.

如果我們能得到陡峭化，顯然後者會更好。如果我們能做到這一點，那麼我們要做的就是透過出售可變證券來積極消除失常，並將貸款成長的債券投資組合的總體規模從 20% 的水平降低到 15% 左右。那將是理想的情況。

I would remind investors that we are what we are. And smarter people than us have tried to bet on interest rates and a large percentage of them wind up with a tin cup in their hand on street corners. Betting on interest rates is a fool's errand.

我想提醒投資人，我們就是我們。比我們更聰明的人嘗試在利率上下注，其中很大一部分人最終在街角手裡拿著一個錫杯。押注利率是愚蠢的事。

We will always be inherently sensitive and better off if rates are higher because of being a very good deposit base. And anybody that wants us to bet that away would be making a mistake.

由於我們擁有非常好的存款基礎，因此如果利率較高，我們始終會保持天生的敏感度和更好的境況。任何希望我們押注的人都會犯錯。

So we do better when rates are high. That's no secret. And we are doing quite well. If short rates fall, we will lose slightly worse. But we will invest capital wisely and we will earn nice returns in any environment.

因此，當利率高時，我們會做得更好。這不是什麼秘密。我們做得很好。如果短期利率下降，我們的損失將會稍微嚴重一些。但我們會明智地投資資本，在任何環境下我們都會獲得豐厚的回報。

Thanks for that. Maybe just a follow-up, combining the expense and the NII commentary, the efficiency ratio, Brad or Jim, if we get the forward curve, we get 100 basis points because obviously, margins will go down. You're obviously going to probably be a little bit more careful on cost. But like where is the efficiency ratio settling if the futures markets right, with 100 of cuts?

謝謝你。也許只是一個後續行動，結合費用和 NII 評論、效率比、布拉德或吉姆，如果我們得到遠期曲線，我們會得到 100 個基點，因為顯然，利潤率會下降。顯然，您可能會在成本方面更加謹慎。但是，如果期貨市場正常的話，效率比會下降 100 倍，那麼效率會穩定在哪裡呢？

So low 50s and high rates, mid- to high 50s in very low rates. I don't see us going back above 50, given our size and scale that we have now. But I also don't think we're ever going back to zero given all the things that resulted from that. And I think it would take an absolute idiot to think that was a good idea at this point.

所以低 50 年代和高利率，中到高 50 年代非常低的利率。考慮到我們現在的規模和規模，我認為我們不會回到 50 以上。但考慮到由此產生的所有事情，我也不認為我們會回到零。我認為只有白痴才會認為這是個好主意。

So in a world where rates aren't zero, deposits are worth fundamentally more than most investors have a memory of. So I think that as long as short rates don't cross 200 basis points at any time soon, we are above 4% margin shot as we are structured today.

因此，在利率不為零的世界裡，存款的價值基本上超出了大多數投資者的記憶。因此，我認為只要短期利率短期內不會突破 200 個基點，以我們今天的結構，我們的利潤率就會高於 4%。

So mid- to upper 50s with -- (multiple speakers)

所以 50 年代中上層——（多位發言者）

The big difference today versus where we were last time we were in a potential scenario where rates were going to be cut with our balance sheet just wasn't optimized, right? We were sitting at low to mid-60s on our loan-to-deposit ratio. So we've got a much stronger pretax pre-provision earnings power now.

今天與上次我們所處的情況有很大的不同，我們的資產負債表可能會降低利率，但沒有優化，對嗎？我們的貸存比率處於 60 多歲左右的水平。因此，我們現在的稅前撥備前獲利能力要強大得多。

Perfect. Thank you.

完美的。謝謝。

Yes, sir.

是的，先生。

Nathan Race, Piper Sandler.

內森·雷斯，派珀·桑德勒。

Yeah. Hi, guys. Good morning. (multiple speakers)

是的。嗨，大家好。早安.（多個發言者）

In terms of funding loan growth in 3Q and 4Q, is that mostly going to be sourced from securities portfolio runoff? And does that imply maybe the margin can expand a little bit more here in 3Q?

從第三季和第四季的融資貸款成長來看，這主要是來自證券投資組合的流失嗎？這是否意味著第三季的利潤率可能會進一步擴大？

I would like to say flat on the margin. It wasn't my expectation that it would go up this quarter. Yes, I would say that if loan growth is strong, which we believe is trending in that direction, that at least half of it will come out of the bond portfolio, and you may see overnight borrowings tick up a bit or you may see deposit growth.

我想說的是，邊緣持平。我沒想到這個季度會上漲。是的，我想說，如果貸款增長強勁（我們認為正朝著這個方向發展），那麼至少一半將來自債券投資組合，你可能會看到隔夜借款略有增加，或者你可能會看到存款生長。

We had deposit growth last quarter. We had some lumpiness happen this quarter. I don't see any reason why deposits can't grow.

上季我們的存款有所成長。本季我們遇到了一些不順利的情況。我看不出存款不能成長的任何理由。

Okay. Great. And then, Brad, can you just remind us the impact on the margin with each 25 cut from the third?

好的。偉大的。然後，布拉德，你能提醒我們從第三場開始每砍 25 分對利潤率的影響嗎？

A 5 to 7 basis point decline and then earlier --

下降 5 至 7 個基點，然後更早下降--

And can you just remind us in terms of the floating rate assets that you have on the balance sheet, both in loans and securities coming out of the quarter?

您能否提醒我們資產負債表上的浮動利率資產，包括本季的貸款和證券？

About 50%. We're about 50-50, but the fixed portion of the balance sheet generally has an effective duration a little over 3%. So rates down will hit us without a lot of weight, there is no question about that. But also you get a pickup, and the benefit of the free funding and deposit costs will come down. And that's when you start looking at growth as well.

大約50%。我們大約是 50-50，但資產負債表的固定部分通常具有略高於 3% 的有效久期。因此，降息對我們的打擊不會太大，這是毫無疑問的。但你也會得到提貨，免費資金和存款成本的好處將會下降。那時你也開始關注成長。

Got it. That's helpful. Just one last one. It sounds like charge-offs may -- there may be some additional cleanup here in the third quarter. And I imagine those are already largely allocated for. But just in terms of where you guys want to see the reserve settle out coming out of the third quarter. Any thoughts on what that level should be relative to total loans?

知道了。這很有幫助。只剩下最後一張了聽起來可能會被沖銷——第三季可能會有一些額外的清理工作。我想這些已經大部分都被分配過了。但就你們希望看到第三季儲備金的情況而言。對於這個水準相對於貸款總額應該是多少有什麼想法嗎？

Yeah. I think the reserve at these levels as a percentage of total loans is probably an appropriate level for us. But to answer your earlier question, I don't see the magnitude of charge-offs in the second half of this year based on the remediation progress we're making on a number of loans and have already realized some progress this quarter. So I think a reserve level in close proximity where we're at now is appropriate.

是的。我認為這些水準的準備金佔貸款總額的百分比可能對我們來說是合適的水平。但回答你之前的問題，根據我們對一些貸款的整治進展，我認為今年下半年的沖銷規模並不大，而且本季度已經取得了一些進展。因此，我認為接近我們目前水準的儲備水準是合適的。

Okay. Great. I appreciate all the color. Thanks, guys.

好的。偉大的。我欣賞所有的顏色。謝謝，夥計們。

Thanks, Nate.

謝謝，內特。

Thank you.

謝謝。

David Long, Raymond James.

大衛朗，雷蒙德詹姆斯。

Good morning, everyone. Brad, I wanted to ask you about the deposit pricing. Obviously, you guys have a great core deposit base, total deposit costs among the lowest of your peer group in your marketplace, where I reside, I'm still getting some pretty nice offers, 5% plus on savings accounts.

大家早安。布拉德，我想問你有關存款定價的問題。顯然，你們有一個很好的核心存款基礎，總存款成本在你們市場上的同行中是最低的，在我居住的地方，我仍然得到了一些相當不錯的優惠，儲蓄帳戶上有5% 以上的優惠。

How much do you see the deposit if we stay higher for longer for the back half of the year, how much higher do you see that total deposit costs for Old Second changing?

如果我們在下半年保持更高的水平，您認為存款會增加多少？

So I think what's largely going on here is that a bank, such as ourselves, which is a good retail deposit bank, a natural mix of the deposits is probably like 25% time deposits. We got down around 10% or 12% because time deposits became a bad deal for consumers. And that's what happens. And with a curve that is at zero across any level of duration.

所以我認為這裡主要發生的是一家銀行，例如我們自己，是一家很好的零售存款銀行，存款的自然組合可能就像 25% 的定期存款。我們的利率下降了 10% 或 12% 左右，因為定期存款對消費者來說是一筆糟糕的交易。這就是發生的事情。並且曲線在任何持續時間水平上都為零。

So time deposits became just simply not a thing. And what we're seeing now is that, that mix shift going back and there is a transition, and we'll probably start trending towards a 20% time deposit mix. I don't see any reason why it shouldn't be that and that's going to be the primary determine of pickup in deposit costs for us.

因此，定期存款根本就不再是一回事了。我們現在看到的是，這種混合轉變正在回歸，並且有一個過渡，我們可能會開始趨向於 20% 的定期存款組合。我不認為有任何理由不應該這樣，這將是我們提取存款成本的主要決定因素。

Now there is a percentage of the deposit base that is a lot of money. For us, that's much lower than everybody else. We have very few accounts that have more than $10 million or $15 million in them. You can count them on fingers and toes.

現在存款基礎有一部分是很多錢。對我們來說，這比其他人要低得多。我們的帳戶中很少有超過 1000 萬或 1500 萬美元的帳戶。你可以用手指和腳趾來數。

So for that customer, for our industry, fixed income markets are simply a better deal and fighting with fixed income markets for that money results in the big pickups in deposit costs that you've seen in our industry, and that's simply not a game that we're in to win. That's not what banks should be doing.

因此，對於該客戶，對於我們的行業來說，固定收益市場只是一個更好的交易，與固定收益市場爭奪這筆錢會導致存款成本大幅上升，就像您在我們行業中看到的那樣，這根本不是一場遊戲我們會贏。這不是銀行該做的事。

Sophisticated large public funds and commercial customers should have a diversified liquidity portfolio. It's simply true that banks are having to fight with fixed income markets for funding because they got duration wildly wrong when rates were low and going higher. And that's what happens when you're stuck. We are simply not stuck.

成熟的大型公募基金和商業客戶應該擁有多元化的流動性組合。確實，銀行不得不與固定收益市場爭奪資金，因為當利率較低且不斷上升時，它們的久期嚴重錯誤。這就是當你陷入困境時會發生的情況。我們根本沒有被困住。

Got it. Thank you for that color. And then on the credit side of things, a lot of talk about commercial, particularly the office space. Hearing more from chief card officers that C&I needs to be more closely watched and regulators need to look more at C&I. How is the performance of your C&I book? And are there any segments there that you're a little bit more concerned about?

知道了。謝謝你的那個顏色。然後在信用方面，有很多關於商業的討論，尤其是辦公空間。首席卡官更表示，C&I 需要受到更密切的關注，監管機構需要更多地關注 C&I。您的 C&I 圖書表現如何？有沒有您更關心的部分？

Yeah. I think so far, our C&I portfolio is holding up very well. We've got about, I think, a little over one-third of our portfolio now in C&I, which we're pleased about, only about less than $20 million is classified in that book. We have seen a couple of credits that we're keeping an eye on.

是的。我認為到目前為止，我們的工商業投資組合表現良好。我認為，我們現在有超過三分之一的投資組合屬於 C&I，對此我們感到很高興，只有不到 2000 萬美元被分類在這本書中。我們已經看到了一些我們正在關注的作品。

But by and large, a lot of our C&I clients that still have a relatively low leverage balance sheet and producing pretty good top line results. But we are obviously watchful with very significant variable portion of that portfolio is in C&I. We're seeing a little bit of stress. But right now, it's behaving very well.

但總的來說，我們的許多工商業客戶仍然擁有相對較低的槓桿資產負債表，並產生了相當不錯的營收表現。但我們顯然很警惕該投資組合中非常重要的可變部分是在 C&I 中。我們看到了一點壓力。但現在，它的表現非常好。

Got it. Thanks for taking my questions, guys.

知道了。謝謝你們回答我的問題，夥伴們。

Thanks, Dave.

謝謝，戴夫。

(Operator Instructions) Brian Martin, Janney Montgomery Scott.

（操作員說明）Brian Martin、Janney Montgomery Scott。

Hey. Good morning, guys.

嘿。早安，夥計們。

Hey, Brian.

嘿，布萊恩。

Hey. Good morning, Brian.

嘿。早安，布萊恩。

Hey, most of my questions are answered, but Brad, just on the securities portfolio, just for clarity, how much of that is coming off in the second half of the year? And the percentage of that is variable rate, just on the securities book, I think it was about 20% last quarter. It sounds like it dropped a bit this quarter.

嘿，我的大部分問題都得到了解答，但是布拉德，只是關於證券投資組合，為了清楚起見，今年下半年會有多少？其中的百分比是可變利率，僅在證券帳簿上，我認為上個季度約為 20%。聽起來這個季度略有下降。

Yeah, not much. I mean, yeah, the type of volatility that we've seen has been not much to dropping that is beside the volatility that we've seen means that there are times when variable securities are quite simply a better deal, and they were for the bulk of the second quarter. So you take the best value for your money.

是的，不多。我的意思是，是的，我們所看到的波動性類型並沒有太大的下降，除了我們所看到的波動性之外，這意味著有時可變證券是更好的交易，而且它們是為了第二季的大部分時間。因此，您可以選擇最物有所值的產品。

In terms of coming off the bond portfolio, I would expect no less than $100 million over the remainder of the year. So it feels fine to support loan growth for the bulk of it. I said at least half a few minutes ago, all the flexibility we need feel very good.

就債券投資組合的支出而言，我預計今年剩餘時間內將不少於 1 億美元。因此，支持大部分貸款成長感覺很好。我至少在半分鐘前說過，我們需要的所有靈活性都感覺非常好。

Yeah. And that comes off at what, Brad? I mean, is it a pretty low rate that $100 million?

是的。布拉德，這會發生什麼事？我的意思是，1 億美元的利率是不是很低？

Yeah. I mean it's certainly lower than the blended overall securities portfolio, which I think is like $320 million or something like that. So it's significantly lower than that.

是的。我的意思是，它肯定低於混合整體證券投資組合，我認為該投資組合約為 3.2 億美元或類似金額。所以它明顯低於這個值。

Okay. Got you. And then just on the credit front, just the progress you made this quarter and some of the commentary, I guess, the resolutions at this point seem to be less costly. But in terms of any lumpy resolutions you expect during the back half of the year?

好的。明白你了。然後就信貸方面而言，僅就您本季的進展以及一些評論而言，我想，此時的決議似乎成本較低。但就您預計下半年會出現的任何不穩定的決議而言？

I mean do you expect another meaningful decline in the nonperformers or the classified or criticized here as you sit back half of the year? Is it more of a slower decline now given some of the heavy lifting you've done?

我的意思是，當你在今年下半年休息時，你是否預期不良者或分類或批評者會再次出現有意義的下降？考慮到您所做的一些繁重工作，現在的下降速度是否更加緩慢？

Yeah. I mean I don't know if we'll get a 23% reduction in nonaccruals next quarter, but we are already realizing some remediation on a number of fronts. Momentum is good. What's encouraging is there's been a very little migration into nonaccrual this quarter.

是的。我的意思是，我不知道下個季度我們的非應計費用是否會減少 23%，但我們已經在許多方面實現了一些補救措施。勢頭良好。令人鼓舞的是，本季轉向非應計利息的情況非常少。

We only saw $1 million, and we saw, obviously, $22 million reduction. So when you have a slowdown in migration that allows you to really working some credits out and we expect that momentum to continue in the next quarter.

我們只看到了 100 萬美元，而且顯然減少了 2200 萬美元。因此，當遷移速度放緩時，您可以真正解決一些問題，我們預計這種勢頭將在下個季度繼續下去。

Got you. Okay. Thanks, Jim. And then, Brad, not to disappoint you on at least getting two questions on capital.

明白你了。好的。謝謝，吉姆。然後，布拉德，不要讓你失望，至少回答了兩個關於資本的問題。

Thank you.

謝謝。

You had one, the second one on the buyback. And I knew you talked about if you go that route, it's a possibility that pricing where it was making sense.

你有一個，回購時有第二個。我知道你說過，如果你走這條路，就有可能在有意義的地方定價。

But given the rally in the market here, at least some of the banks, can you -- I guess, as you're -- if you go their route, has your outlook changed? And how you would think about the profitability of that at what pricing of it would look more attractive?

但考慮到這裡市場的反彈，至少是一些銀行，如果你走他們的路，你能——我想，就像你一樣——你的前景會改變嗎？您如何看待該產品的獲利能力，什麼樣的定價看起來更有吸引力？

No. I started flirting with the buyback talk about a year ago and I think our stock is at 25%, 30% or something like over there. I don't know what it is. It's probably about like that, it's up 20% a month. Tangible book value is up 26%. On a relative basis, it's the same.

不。一年前我開始談論回購，我認為我們的股票是 25%、30% 或類似的水平。我不知道那是什麼。大概就是這樣，一個月漲20%。有形帳面價值成長 26%。從相對的角度來說，是一樣的。

Certainly, it would have been -- I could have acted all smug when we bought back a big slug of stock at $12.50 or something. But ultimately, it's a relative game and nothing's really changed.

當然，當我們以 12.50 美元之類的價格回購一大筆股票時，我可能會表現得沾沾自喜。但歸根結底，這只是一場相對的遊戲，沒有什麼真正改變。

Got you. Okay. That's all I had, guys. Thank you.

明白你了。好的。這就是我所擁有的一切，夥計們。謝謝。

All right. Thanks, Brian.

好的。謝謝，布萊恩。

We have reached the end of the question-and-answer session, and I will now turn the call back over to James Eccher for closing remarks.

問答環節已經結束，我現在將把電話轉回給詹姆斯·埃徹（James Eccher）做總結發言。

Okay. Thanks, everyone, for your interest in our company, and we look forward to speaking with you again next quarter. Goodbye and have a great day.

好的。感謝大家對我們公司的關注，我們期待下季再次與您交談。再見，祝你有美好的一天。