PacWest Bancorp (PACW) 2022 Q4 法說會逐字稿

Good day, and welcome to the PacWest Bancorp Fourth Quarter 2022 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Bill Black, PacWest Bancorp.

美好的一天，歡迎來到 PacWest Bancorp 2022 年第四季度財報電話會議。今天的會議正在錄製中。此時，我想將會議轉交給 PacWest Bancorp 的 Bill Black。

Thank you. Good morning, and welcome to [PacWest] Fourth Quarter 2022 Earnings Conference Call. With me today are Paul Taylor, our President and CEO; Kevin Thompson, CFO; and Mark Yung, our COO; and the leader of our venture banking business. Before I hand the call over to Paul, please note that we may make forward-looking statements during today's call to risks uncertainties and assumptions.

謝謝。早上好，歡迎來到 [PacWest] 2022 年第四季度收益電話會議。今天和我在一起的是我們的總裁兼首席執行官 Paul Taylor；凱文湯普森，首席財務官；以及我們的首席運營官 Mark Yung；以及我們風險投資銀行業務的領導者。在我將電話轉交給保羅之前，請注意，我們可能會在今天的電話會議中就風險不確定性和假設做出前瞻性陳述。

For a more complete discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements, see our SEC filings, including the 8-K filed yesterday afternoon, which is also available on the company's website. I'd like to turn the call over to our President and CEO, Paul Taylor. Thank you, Bill. Good morning, everyone, and thank you for joining our call today. We've made several significant leadership changes in the fourth quarter that will set the stage for the future. Specifically, I assumed the role of President and CEO, replacing our long-time CEO, Matt Wagner, who became the Executive Chairman; John Eggemeyer has become our Lead Director; and Kevin Thompson has joined us as new Chief Financial Officer.

有關可能導致實際結果與任何前瞻性陳述存在重大差異的風險和不確定性的更完整討論，請參閱我們向美國證券交易委員會提交的文件，包括昨天下午提交的 8-K 文件，該文件也可在公司網站上查閱。我想把電話轉給我們的總裁兼首席執行官保羅泰勒。謝謝你，比爾。大家早上好，感謝您今天加入我們的電話會議。我們在第四季度進行了幾項重大的領導層變動，這將為未來奠定基礎。具體來說，我擔任總裁兼首席執行官，接替我們長期擔任首席執行官的馬特瓦格納，後者成為執行主席； John Eggemeyer 已成為我們的首席總監；凱文·湯普森 (Kevin Thompson) 加入我們，擔任新任首席財務官。

We announced a sharpened strategic vision and plan to build on the strengths of the company's deposit-focused community bank business operating as one team with a mission to maximize shareholder returns by exceeding customer expectations.

我們宣布了一個更清晰的戰略願景，併計劃以公司以存款為中心的社區銀行業務的優勢為基礎，作為一個團隊運營，其使命是通過超越客戶期望來最大化股東回報。

PacWest has a long history of acquisitions that brought us great customers and talented employees, but also varied processes and different cultures. Now the time is right to focus on coming together to function even more uniformly and efficiently as one company, regardless of a business line or corporate function.

PacWest 擁有悠久的收購歷史，為我們帶來了優秀的客戶和才華橫溢的員工，但也帶來了不同的流程和不同的文化。現在是時候專注於團結起來，作為一個公司更加統一和高效地運作，而不管業務線或公司職能。

We will simplify and improve our processes to deliver an even higher level of service to our customers and more valuable to our shareholders while meeting or exceeding our regulators' requirements for safety and soundness. This plan is the result of the past 6 months of work since I joined PacWest assessing and building a detailed strategic vision and tactical plan to maximize shareholder value.

我們將簡化和改進我們的流程，為我們的客戶提供更高水平的服務，為我們的股東提供更有價值的服務，同時滿足或超過監管機構對安全性和穩健性的要求。該計劃是我加入 PacWest 以來過去 6 個月工作的結果，評估並製定了詳細的戰略願景和戰術計劃，以最大限度地提高股東價值。

We are operating with a sense of urgency. Specifically, in the fourth quarter, the company made the decision to wind down its operations in premium finance and multifamily lending. In addition, the company is restructuring our subsidiary to realign its operations to improve profitability and reduce risk. These actions will help us refocus our efforts on our core businesses, accelerate our capital growth and improve operational efficiencies over time.

我們懷著緊迫感開展工作。具體來說，在第四季度，該公司決定結束其在優質金融和多戶家庭貸款方面的業務。此外，該公司正在重組我們的子公司以重新調整其運營以提高盈利能力並降低風險。隨著時間的推移，這些行動將幫助我們重新將精力集中在我們的核心業務上，加速我們的資本增長並提高運營效率。

In addition to the strategic decisions above, the company opportunistically sold $1 billion in bonds at a loss in the quarter, which was used to pay down higher cost funding and better position the balance sheet going forward. The management team has also initiated an operational efficiency strategy to control costs, reduce processing systems and define synergies across the company. We see opportunity for growth in earnings through focusing on our core business and customers and have created a list of financial performance metrics that we believe are achievable and where the bank should perform over time.

除了上述戰略決策外，該公司還在本季度虧本出售了 10 億美元的債券，用於支付更高的融資成本並更好地定位未來的資產負債表。管理團隊還啟動了一項運營效率戰略，以控製成本、減少處理系統並定義整個公司的協同效應。我們看到了通過專注於我們的核心業務和客戶來增加收益的機會，並創建了一份我們認為可以實現的財務績效指標清單，以及銀行應該在一段時間內表現的指標。

These include building our CET1 ratio to 10-plus percent; low-cost core deposits equal to 40% or greater; return on assets of 150% or better; efficiency ratio of 45% or less; nonperforming asset ratio of less than 50 basis points; and top quartile earnings per share growth. We believe that the actions taken in the fourth quarter are meaningful first steps towards our goals, but it comes out across.

其中包括將我們的 CET1 比率提高到 10% 以上；等於或大於 40% 的低成本核心存款； 150%或更高的資產回報率；效率比為45%或更低；不良資產率低於50個基點；以及每股收益增長的前四分之一。我們認為，第四季度採取的行動是朝著我們的目標邁出的有意義的第一步，但結果是一致的。

While our capital goals remain 10% CET1, our actions in the fourth quarter will delay the timing a little, and as such, we would expect our CET1 ratio to hit 9.75% by the end of 2023 and achieve our target of 10% early in 2024. This minor delay enables us to accelerate the balance sheet transformation. There are real challenges ahead with rising interest rates and a slowing economy, but there is (inaudible) a significant opportunity for PacWest to improve our performance and return to shareholders, given our strong team, a great customer base and a plan to unlock additional value for our shareholders and employees. Thank you.

雖然我們的資本目標仍然是 10% CET1，但我們在第四季度的行動將稍微推遲時間，因此，我們預計到 2023 年底我們的 CET1 比率將達到 9.75%，並在年初實現我們 10% 的目標2024 年。這一微小的延遲使我們能夠加速資產負債表轉型。利率上升和經濟放緩面臨著真正的挑戰，但鑑於我們強大的團隊、龐大的客戶群和釋放額外價值的計劃，PacWest 有（聽不清）改善我們的業績和回報股東的重大機會為我們的股東和員工。謝謝。

Thanks, Paul. Strategically, the fourth quarter marks the beginning of the next chapter for PacWest. We want to highlight four main points: First and foremost, we announced a clear strategic vision around the Community Bank with an operational focus on unifying our businesses and eliminating silos to improve performance.

謝謝，保羅。從戰略上講，第四季度標誌著 PacWest 下一章的開始。我們要強調四個要點：首先，我們宣布了圍繞社區銀行的明確戰略願景，其運營重點是統一我們的業務和消除孤島以提高績效。

Second, we are acting with a real sense of urgency, as you can see in the fourth quarter with the on sale and the exiting of two business lines and a significant restructuring of another. Third, we announced an aggressive operating target list to hold ourselves accountable and to set the bar what we believe this company should perform over time.

其次，我們以真正的緊迫感採取行動，正如您在第四季度看到的那樣，出售和退出兩條業務線以及另一條業務線的重大重組。第三，我們宣布了一份積極的經營目標清單，以追究我們自己的責任，並設定我們認為這家公司隨著時間的推移應該表現的標準。

Lastly, we like the industry are facing challenges in the current economic environment. We are 100% committed to managing the business through the cycle, preparing for whatever gets thrown at us. And now I'd like to turn things over to Kevin, our CFO, for some specific commentary on the financial results before we go into the Q&A session.

最後，我們喜歡這個行業在當前的經濟環境中面臨挑戰。我們 100% 致力於在整個週期中管理業務，為我們遇到的任何問題做好準備。現在我想把事情交給我們的首席財務官凱文，在我們進入問答環節之前，他會就財務結果發表一些具體評論。

Thank you, Bill. It's a pleasure to join the talented team at PacWest, and I look forward to working with all of you. The fourth quarter was characterized by various strategic actions to improve our profitability and capital position going forward. As Paul mentioned, our sale of $1 billion of available for sale securities resulted in a $49 million loss.

謝謝你，比爾。很高興加入 PacWest 才華橫溢的團隊，我期待與大家一起工作。第四季度的特點是採取了各種戰略行動來提高我們未來的盈利能力和資本狀況。正如保羅所提到的，我們出售 10 億美元的可供出售證券導致了 4900 萬美元的損失。

We used the proceeds to pay down FHLB borrowings. As part of the efforts to restructure our Civic lending subsidiary, we recorded a goodwill impairment to $29 million. As a reminder, goodwill is a noncash charge and has no impact on our regulatory capital ratios, cash flows or liquidity position. Finally, we are working to dramatically improve the overall operational efficiency of the bank. As a first step in this initiative, we recorded early retirement benefits and a severance expense of $5.7 million.

我們用所得款項償還 FHLB 的借款。作為重組我們 Civic 貸款子公司的努力的一部分，我們將商譽減值記錄為 2900 萬美元。提醒一下，商譽是一種非現金費用，對我們的監管資本比率、現金流量或流動性狀況沒有影響。最後，我們正在努力大幅提高銀行的整體運營效率。作為該計劃的第一步，我們記錄了提前退休福利和 570 萬美元的遣散費。

Adjusting for these unusual items, in the fourth quarter, our earnings per share would have been $0.93, and our return on average assets would have been 1.15%. Loans and leases increased by $949 million in the quarter or by 3.4%, mostly connected to residential real estate mortgage and construction portfolios.

對這些不尋常的項目進行調整後，第四季度的每股收益為 0.93 美元，平均資產回報率為 1.15%。本季度貸款和租賃增加了 9.49 億美元，增幅為 3.4%，主要與住宅房地產抵押和建築投資組合有關。

Loan production yields increased to 7.55% from 5.92% in the prior quarter due to the mix and increasing market rates. Deposits decreased by $260 million in the quarter, driven mostly by outflows in the venture banking deposit portfolio. This was offset by increases in retail and brokered time deposits and wholesale nonmaturity deposits at higher costs.

由於組合和市場利率上升，貸款生產收益率從上一季度的 5.92% 上升至 7.55%。本季度存款減少了 2.6 億美元，這主要是由於風險銀行存款組合的資金外流。這被零售和經紀定期存款以及成本更高的批發非到期存款的增加所抵消。

The net interest margin decreased by 16 basis points in the quarter. With the unprecedented increase in interest rates, our cost of deposits increased by 67 basis points to 1.37% while our average (inaudible) increased 61 basis points to 5.73%. As a result, our net interest income decreased by $12.2 million to $323 million in the quarter.

本季度淨息差下降 16 個基點。隨著利率空前上漲，我們的存款成本增加了 67 個基點至 1.37%，而我們的平均（聽不清）增加了 61 個基點至 5.73%。因此，本季度我們的淨利息收入減少了 1220 萬美元，降至 3.23 億美元。

Credit metrics remained strong in all our loan portfolios, the allowance for credit losses increased by $7.4 million to $292 million in the quarter, mostly due to loan growth, with an allowance for credit loss ratio of 1.02%. We Nonperforming assets remained low at 36 basis points of total loans and leases. Excluding the goodwill impairment of $29 million and $5.7 million related to early retirements and severance, noninterest expense decreased $3.5 million in the quarter.

我們所有貸款組合的信貸指標依然強勁，本季度信貸損失準備金增加 740 萬美元至 2.92 億美元，主要是由於貸款增長，信貸損失準備金率為 1.02%。不良資產佔貸款和租賃總額的 36 個基點仍然很低。不包括 2900 萬美元的商譽減值和與提前退休和遣散費相關的 570 萬美元，本季度非利息費用減少了 350 萬美元。

The decrease was due to lower services fees and lower intangible asset amortization, offset by higher customer-related expenses of $5.5 million. The efficiency ratio was 53.3% in the quarter.

減少的原因是服務費和無形資產攤銷減少，被 550 萬美元的客戶相關費用增加所抵消。本季度效率率為53.3%。

Looking at the full year 2023, while we are just completing our budgeting process, I will share with you our current outlook. We plan to accrete capital through the year and to reach a CET1 ratio of around 9.75% by year-end and reach our CET1 goal of 10% in the early part of 2024. We expect loan balances to be flat for the year as part of our strategy to preserve capital and strengthen the balance sheet.

展望 2023 年全年，雖然我們剛剛完成預算編制過程，但我將與您分享我們目前的展望。我們計劃在今年增加資本，並在年底前達到約 9.75% 的 CET1 比率，並在 2024 年初達到 10% 的 CET1 目標。我們預計今年的貸款餘額將持平，因為我們保本和加強資產負債表的戰略。

We anticipate flat deposit balances as well with renewed focus on community banking and full deposit relationships. We currently expect two more 25 basis point rate increases from the Federal Reserve in 2023. This will impact our deposit and loan pricing, likely resulting in a flat net interest margin to the level experienced in 2022.

我們預計存款餘額將持平，並重新關注社區銀行業務和完整的存款關係。我們目前預計美聯儲將在 2023 年再加息兩次 25 個基點。這將影響我們的存款和貸款定價，可能導致淨息差持平至 2022 年的水平。

With our strategic focus on operational efficiency, we plan to continue the course we took in the fourth quarter to reduce expenses. This includes tightening expense controls, especially around compensation and reducing costs related to vendors, discontinued business lines, facilities and projects. As a result, we expect a full year efficiency ratio in the low 50% area, with a longer-term goal of mid-40%.

憑藉我們對運營效率的戰略重點，我們計劃繼續我們在第四季度採取的課程以減少開支。這包括收緊費用控制，尤其是圍繞薪酬和降低與供應商、已終止的業務線、設施和項目相關的成本。因此，我們預計全年效率比將處於 50% 的低水平區域，長期目標為 40% 左右。

Our credit quality continues to be strong, and we presently do not anticipate any increase reserves from current levels. This concludes our prepared remarks. Operator, could you please open the line for questions.

我們的信用質量繼續保持強勁，我們目前預計不會在當前水平上增加準備金。我們準備好的發言到此結束。接線員，請您打開問題熱線。

(Operator Instructions) And we'll take our first question from Brandon King from Truist Securities.

（操作員說明）我們將從 Truist Securities 的 Brandon King 那裡回答我們的第一個問題。

So Paul, I wanted to get your top level thoughts on the strategy going forward. Obviously, you mentioned we're not doing any more premium finance, multifamily. I'm curious, what are the other business lines you want to lean into more particularly of the national business lines?

所以保羅，我想听聽你對未來戰略的最高看法。顯然，你提到我們不再做更多的優質金融，多戶家庭。我很好奇，您想更深入地研究哪些其他業務線，尤其是國家業務線？

Yes. So as you look at our balance sheet, I mean, one thing we do very well and a lot of it is we do a lot of real estate. So that's one of the items we'll continue to do. And then in our community bank, we do a lot of more commercial focused, more relationship type real estate that will continue on. And then we also have some units that do some more C&I lending. But again, that's a nationwide business, and we'll continue to do that. This year, we really looked at each 1 of our business lines and the ones we've discontinued are more of a low yield, no relationship type business. So I mean that was a fairly easy decision to get rid of those.

是的。因此，當您查看我們的資產負債表時，我的意思是，我們做得很好的一件事就是我們做了很多房地產。所以這是我們將繼續做的項目之一。然後在我們的社區銀行中，我們將繼續開展更多以商業為重點、更多關係類型的房地產業務。然後我們還有一些部門提供更多的 C&I 貸款。但同樣，這是一項全國性的業務，我們將繼續這樣做。今年，我們真的審視了我們的每一項業務，我們已經停止的業務更多是低收益、無關係類型的業務。所以我的意思是擺脫這些是一個相當容易的決定。

Okay. And then in regard to civic, you mentioned there is some restructuring there. What is kind of the strategy for Civic going forward and the outlook for that?

好的。然後關於公民，你提到那裡有一些重組。 Civic 的未來發展戰略和前景如何？

Yes. So we've taken -- sort of taken all over, and we're integrated and into PacWest. We're still in the process of analyzing that. The one thing we know is that there's a lot more overhead than there should be. So we expect significant savings from that entity. And right now, we're looking at all the products that they offer and determining which ones of those products that we'll hang on to and go forward with. We've put Mark Young, who's on the call here today in charge of Civic, and he is in civic right now and he's helping us with those determinations. But at the end of the day, it will be a much more profitable company and lowering the risk profile of the company also.

是的。所以我們採取了 - 有點接管了，我們被整合到 PacWest 中。我們仍在對此進行分析。我們知道的一件事是，開銷比應有的要多得多。因此，我們預計該實體會節省大量資金。現在，我們正在研究他們提供的所有產品，並確定我們將堅持並繼續使用其中的哪些產品。我們已經讓今天來這裡接聽電話的 Mark Young 負責思域，他現在在思域，他正在幫助我們做出這些決定。但最終，這將是一家利潤更高的公司，同時也降低了公司的風險狀況。

We'll take our next question from Matthew Clark from Piper Sandler.

我們將接受 Piper Sandler 的 Matthew Clark 的下一個問題。

Maybe just on the portfolios or businesses that you're unwinding maybe just confirm the size of those portfolios. I think premium finance is over -- just over $800 million, multifamily maybe isolate that piece and how much you think you might have in runoff from Civic more deliberate? I mean the other -- and then as a related question to that, I mean, you talked about loans being flat for the year, does that include the kind of unwind or runoff of those three areas -- some portion of those areas?

也許只是在你正在平倉的投資組合或業務上，也許只是確認這些投資組合的規模。我認為保費融資已經結束——剛剛超過 8 億美元，多戶家庭可能會把這部分隔離開來，你認為你在思域的徑流中可能有多少更慎重？我的意思是另一個——然後作為一個相關的問題，我的意思是，你談到今年的貸款持平，這是否包括這三個領域的放鬆或徑流——這些領域的一部分？

Yes. Bill, why don't you take that? You've got all those details.

是的。比爾，你為什麼不接受它？你已經掌握了所有這些細節。

You've got all those details. Yes. So Premium Finance was about 800 -- it's a little north of $850 million as we sit here today. On the multifamily stuff, there's kind of two different real tranches. There's a customer base multifamily business, which we're not exiting, and we're going to continue to service our core deposit customers. And we had a separate group that was originating small-balance multifamily. The small balance multifamily stuff that we're running off is a little over $3 billion.

你已經掌握了所有這些細節。是的。所以 Premium Finance 大約是 800——比我們今天坐在這裡的 8.5 億美元略高。在多戶家庭的東西上，有兩種不同的真實部分。有一個客戶群的多戶家庭業務，我們不會退出，我們將繼續為我們的核心存款客戶提供服務。我們有一個獨立的小組，該小組正在發起小額平衡多戶家庭。我們正在耗盡的小余額多戶家庭項目略高於 30 億美元。

And I'll add, Matthew -- hi Matthew, good to hear your voice again. I will add that the flat loan growth for the year does anticipate the wind down of those entities.

我要補充一點，馬修——嗨，馬修，很高興再次聽到你的聲音。我要補充的是，今年的貸款增長持平確實預示著這些實體的倒閉。

Okay. Great. And then as you're going through this restructuring process, the other, I guess, question is what kind of ROA do you think you can maintain on an operating basis kind of excluding any additional severance and other kind of unusual items this year?

好的。偉大的。然後當你經歷這個重組過程時，另一個，我想，問題是你認為你可以在運營基礎上維持什麼樣的 ROA，今年排除任何額外的遣散費和其他類型的異常項目？

So as we look forward in -- throughout this year, we believe that we can maintain somewhere around a [1 10] ROA for the year, but it's going to be ramping up. So as you look at like December ROA is going to be about a [1 20], but I'm going to preface that. I mean, 2023 is going to be an interesting year. I don't think any of us quite know how it's going to go. I mean we've probably got some more increases from the Fed. Most economists believe we're going to go into some level of a recession. I'm not smart enough to figure out what level or how long or anything like that. But I mean, we will do well but there could be some macro type items like that, that could cause some variation. And the actions we're taking now are in preparation, so that we're flexible and have a balance sheet that's prepared for that type of environment.

因此，正如我們展望的那樣 - 在今年全年，我們相信我們可以在一年中保持在 [1 10] 左右的 ROA，但它將會上升。因此，正如您所看到的那樣，12 月的 ROA 將約為 [1 20]，但我將作為序言。我的意思是，2023 年將是有趣的一年。我不認為我們中的任何人都知道它會如何發展。我的意思是我們可能從美聯儲那裡得到了更多的加息。大多數經濟學家認為我們將進入某種程度的衰退。我不夠聰明，無法弄清楚什麼級別或多長時間或類似的東西。但我的意思是，我們會做得很好，但可能會有一些像這樣的宏類型項目，這可能會導致一些變化。我們現在正在採取的行動正在準備中，因此我們很靈活，並且擁有為這種環境準備的資產負債表。

Got it. And then just to close the loop on that ROA conversation. In terms of the denominator, you spoke about the loans being flattish, but what about overall assets and borrowings from here? Is there a plan to sell more securities and pay off FHLB? Or how should we think about overall assets by the end of this year?

知道了。然後只是結束 ROA 對話的循環。就分母而言，您談到貸款持平，但這裡的整體資產和借款呢？是否有出售更多證券並償還 FHLB 的計劃？或者我們應該如何考慮今年年底的整體資產？

Yes. I mean, quite honestly, we're looking at everything. Everything is on the table. As you look at PacWest balance sheet, it's about $41 billion. I mean there's an argument in there that a smaller balance sheet could be more profitable. We're sort of stressed in some areas. But again, that's part of the reason we sold the billion dollars in bonds. There was sort of a dip in the 10-year, and we had these groupings of bonds that we felt it was worthwhile to go ahead and sell them and take the loss, but we're looking at all those types of things.

是的。我的意思是，老實說，我們正在研究一切。一切都擺在桌面上。當您查看 PacWest 的資產負債表時，它約為 410 億美元。我的意思是那裡有一個論點，即較小的資產負債表可能更有利可圖。我們在某些方面有點壓力。但同樣，這也是我們出售數十億美元債券的部分原因。 10 年期債券有所下跌，我們有這些債券組合，我們認為值得繼續出售並承擔損失，但我們正在研究所有這些類型的事情。

And it needs to be strategic. We're thinking of the long-term shareholder value here, what's the earn back. There's a level of liquidity we need to hold in the bond portfolio. Also, there's an element of patience in our unrealized losses, if you wait and the bonds mature overtime, those unrealized losses reverse. So we're being very strategically thoughtful to this.

它需要具有戰略意義。我們在這裡考慮的是長期股東價值，回報是多少。我們需要在債券投資組合中保持一定程度的流動性。此外，我們的未實現損失也有耐心，如果您等待並且債券超時到期，那些未實現的損失就會逆轉。所以我們在戰略上非常考慮這一點。

Got it. And then on the expense side, you had some severance here this quarter. Just curious what the related savings or annualized savings that you expect some that? And it sounds like that's kind of the first step, as you mentioned in the release. It sounds like there's more. Any order of magnitude in terms of the potential cost saves we could see this year?

知道了。然後在費用方面，本季度你在這裡有一些遣散費。只是好奇您期望的相關節省或年化節省是多少？正如您在新聞稿中提到的那樣，這聽起來像是第一步。聽起來好像還有更多。就我們今年可以看到的潛在成本節省而言，有多少數量級？

Yes, annualized, it's probably about the level of severance that we saw going forward. And we have other -- we have an operational efficiency focus right now, where we're looking at facilities, we're looking at projects. We're looking at compensation across the board. Are There are things we can do more efficiently. We have a lot of systems and so much more to come in that area as we're working through our strategic plan.

是的，按年計算，這可能與我們看到的未來遣散費水平有關。我們還有其他 - 我們現在有一個運營效率重點，我們正在研究設施，我們正在研究項目。我們正在考慮全面的薪酬。我們可以更有效地做一些事情嗎？在我們制定戰略計劃的過程中，我們有很多系統，而且在該領域還會有更多系統。

And we'll take our next question from Chris a from KBW.

我們將接受來自 KBW 的 Chris a 的下一個問題。

You talked, Paul, about the $975 million getting $10 million. What are your thoughts on -- I mean, this seems like a restructuring year. Like what are your thoughts on accelerating that with the capital raise?

保羅，你談到了 9.75 億美元得到 1000 萬美元。你有什麼想法——我的意思是，這似乎是一個重組年。比如你對通過融資加速這一進程有何看法？

Again, I would say everything is on the table. I think the pricing of our stock has moved up a bit here. in the past week to weeks. But at levels that we've been at, it would be -- I think it'd be very tough to raise stock. But again, that is on the table, but there's no plan to do that at this point in time.

再一次，我會說一切都擺在桌面上。我認為我們股票的定價在這裡有所上漲。在過去的一周到幾週內。但在我們一直處於的水平上，這將是——我認為籌集股票將非常困難。但同樣，這已經擺在桌面上，但目前還沒有計劃這樣做。

We did raise the preferred stock earlier in the year and that buoyed capital a bit.

我們確實在今年早些時候籌集了優先股，這稍微提振了資本。

And again, we'd be very thoughtful about the earn back associated with that and shareholder dilution and other options that would dilute shareholders much less.

再一次，我們會非常仔細地考慮與此相關的收益和股東稀釋以及其他會稀釋股東更少的選擇。

Absolutely.

絕對地。

Great. If I could -- I think I heard in your prepared remarks, you don't think you need to add reserves from here. I guess wanted to hear that correctly. And I guess most of your most...

偉大的。如果可以的話——我想我在你準備好的發言中聽到了，你認為你不需要從這裡增加儲備金。我想我想正確地聽到那個。我想你最...

Well, I would preface that with this year. We really don't -- I mean, as we see it today, we don't see any need to add any substantial reserves. We feel that we're adequate. There's -- I just talked to our Chief Credit Officer yesterday, and there's really no signs of any issues with credit quality or any concerns at this point in time. But again, we're probably going into a recession this year, and that could elevate credit issues, but we don't know that.

好吧，我會以今年作為序言。我們真的沒有——我的意思是，正如我們今天所看到的，我們認為沒有必要增加任何大量儲備。我們覺得我們足夠了。有——我昨天剛剛與我們的首席信用官談過，目前確實沒有任何信用質量問題或任何擔憂的跡象。但同樣，我們今年可能會陷入衰退，這可能會加劇信貸問題，但我們不知道。

Okay. Yes. I would just think you might get ahead of it just because the investors aren't buying your stock for current earnings. I get the limitations of CECL, but I'll step back.

好的。是的。我只是認為你可能會領先於它，因為投資者不是為了當前的收益而購買你的股票。我知道 CECL 的局限性，但我會後退一步。

But -- and again, I just want to make sure it's very clear that we are very comfortable with our credit position at this time. PacWest is a very, very good credit shop. I've only been here a handful of months, but that's one of my biggest impressions is that PacWest is a very, very good credit shop.

但是——再一次，我只想確保非常清楚，我們目前對我們的信用狀況非常滿意。 PacWest 是一家非常非常好的信用商店。我來這裡才幾個月，但我最大的印象之一就是 PacWest 是一家非常非常好的信用商店。

Sorry about that. We'll go to our next question. Our next question comes from Gary Tenner from D.A. Davidson.

對於那個很抱歉。我們將轉到下一個問題。我們的下一個問題來自 D.A. 的 Gary Tenner。戴維森。

So on the runoff portfolios, Bill, that you laid out in terms of the size of premium finance and multifamily. I assume premium finance -- I mean that's a pretty quick runoff right, kind of a pretty short-term portfolio is multifamily, should we assume that's more about a couple or 3 years of runoff, but maybe the bulk of it on the end.

因此，在決選投資組合中，比爾，你根據保費融資和多戶家庭的規模進行了佈局。我假設保費融資——我的意思是，這是一個非常快速的徑流，一種相當短期的投資組合是多戶家庭，我們應該假設這更多是關於幾年或 3 年的徑流，但可能是最後的大部分。

So on the multifamily, I would agree that's a reasonable assumption coming depending upon when things were hindering when they mature, it will kind of ebb and flow, but it will kind of pace itself out. Premium finance is a business that, clearly, we're exiting. We have communicated that to the borrowers, and we're going to work with them. I wouldn't expect it to be immediate. It's not going to be instantaneous, and we're going to work it out.

因此，對於多戶住宅，我同意這是一個合理的假設，這取決於事情何時成熟時會受到阻礙，它會起伏不定，但它會逐漸消失。很明顯，高級金融是一項我們正在退出的業務。我們已將此傳達給借款人，我們將與他們合作。我不希望它是立即的。這不會是瞬間的，我們會解決的。

Is there an opportunity to sell the premium finance business? I think we saw last year or 1.5 years ago or so, Texas Capital sold at their premium finance business to Truist. Is there any appetite in the market for that kind of business?

是否有機會出售高級金融業務？我想我們在去年或 1.5 年前左右看到，Texas Capital 將其優質金融業務出售給了 Truist。市場對這類業務有興趣嗎？

Well, again, I would say that, that -- again, everything is on the table. We look at that, but nothing on that right now.

好吧，再一次，我要說的是——再一次，一切都擺在桌面上了。我們正在看，但現在還沒有。

Okay. And then in terms of kind of the expectations on the deposit side, knowing that it sounds like the balance sheet is going to be pretty flat. Do you have a view or expectation for deposit flows in the DC space? Obviously, we've heard Silicon Valley talk a little more optimistically towards the back half of the year, but do you have any expectations in terms of maybe recovering some of those flows and remixing the deposit base later in the year? From that channel?

好的。然後就存款方面的預期而言，知道資產負債表聽起來會非常平坦。您對 DC 空間中的存款流動有看法或期望嗎？顯然，我們聽說矽谷對今年下半年的看法更為樂觀，但您對今年晚些時候可能恢復其中一些流量並重新混合存款基礎有任何期望嗎？從那個頻道？

Well, I can tell you, we'd absolutely love to have venture deposits increase. Venture deposits are very, very hard to estimate. I'd have to tell you it's very frustrating. They come down quite a bit. As I look at this year, I mean, in the first half of the year, they seem to have sort of floored and we seem to be flat. We did have declines in the second half of the year, but they're nothing like we've seen in the past. So we would like to think we're about $11 billion in venture deposits. So we'd like to see them floor out somewhere around there, and that's sort of what we're planning for. They'll go down a little bit. And I hope we're right. because then that will allow us to remix the deposit base, get out of some of the wholesale deposits and really dramatically decrease the cost of funds.

好吧，我可以告訴你，我們絕對希望增加風險存款。風險存款非常非常難以估計。我不得不告訴你這非常令人沮喪。他們下降了很多。就今年而言，我的意思是，在今年上半年，他們似乎已經觸底，而我們似乎持平。我們在下半年確實出現了下滑，但與我們過去看到的完全不同。所以我們想認為我們有大約 110 億美元的風險存款。所以我們希望看到他們在那裡的某個地方，這就是我們的計劃。他們會下降一點點。我希望我們是對的。因為那將使我們能夠重新組合存款基礎，擺脫一些批發存款並真正顯著降低資金成本。

It's a great low cost of funds to Paul's point. But at the same time, we will be very careful what assets we stack up against those deposits because of the element of volatility.

對 Paul 來說，這是一筆非常低的資金成本。但與此同時，由於波動因素，我們將非常小心我們將哪些資產與這些存款疊加起來。

And Mark, I would agree the softness kind of earlier in the year and expected a better market towards the teal end of the year. And again, this market is very rate sensitive as well, right, the venture market. There's a tremendous amount of dry powder, but obviously, people are -- have slowed down investment cadence with all the news that we saw here in Q4, and that's carrying through earlier part of this year.

馬克，我同意今年早些時候的疲軟情況，並預計到今年年底會有更好的市場。同樣，這個市場對利率也非常敏感，對，風險市場。有大量的干火藥，但顯然，人們已經放慢了我們在第四季度看到的所有新聞的投資節奏，並且這種情況一直持續到今年早些時候。

And we'll go to our next question from David Chiaverini from Wedbush Securities.

我們將轉到 Wedbush Securities 的 David Chiaverini 的下一個問題。

I wanted to ask some follow-ups on the ROA discussion. You mentioned 1.1% for 2023 in December, getting to 1.2%. And then the overall target is 1.5%. Can you talk about the timing of getting to that 1.5%?

我想問一些關於 ROA 討論的後續問題。你在 12 月提到 2023 年為 1.1%，現在達到 1.2%。然後總體目標是1.5%。你能談談達到 1.5% 的時機嗎？

David, good to hear your voice. As Paul mentioned earlier, 2023 is -- it could be an interesting year. We could see a mild recession. We're expecting two more Federal Reserve rate increases of 25 basis points. And so we're very focused on armoring our balance sheet, being prepared from a liquidity perspective and making some big decisions and moves in terms of our operational efficiency going forward. So 2023, you may see a lot of noise because of that, but those should set us up really well in 2024 and 2025 to have a really good chance to get back to the great profitability this bank has seen in the past.

大衛，很高興聽到你的聲音。正如保羅之前提到的，2023 年可能是有趣的一年。我們可能會看到溫和的衰退。我們預計美聯儲將再兩次加息 25 個基點。因此，我們非常專注於保護我們的資產負債表，從流動性的角度做好準備，並在我們未來的運營效率方面做出一些重大決策和舉措。因此，到 2023 年，你可能會因此而看到很多噪音，但這些應該會讓我們在 2024 年和 2025 年真正做好準備，從而有很好的機會恢復這家銀行過去看到的巨大盈利能力。

(inaudible) a little bit. I'm not a very patient person, so we're going to push as hard as we can to get to these overall goals that we have and that we released yesterday.

（聽不清）一點點。我不是一個很有耐心的人，所以我們將盡我們所能努力實現我們昨天發布的這些總體目標。

That's helpful. And should we expect any increased volatility around that target of 1.5%, given you're exiting a couple of stable businesses of multifamily and premium finance, but retaining the presumably more volatile Civic business. Can you discuss that?

這很有幫助。我們是否應該預期圍繞 1.5% 的目標的波動性會增加，因為您正在退出一些穩定的多戶家庭和高級金融業務，但保留可能更不穩定的 Civic 業務。你能討論一下嗎？

Yes. I mean there's going to be -- we're going to take further actions as we go throughout the year and we're trying to have any more actions earlier in the year, so we can get a better run rate. So there will be some volatility, I would think that would be in the beginning of this year, and then it should smooth out as we get into the second half of this year and then into '24.

是的。我的意思是會有——我們將在全年採取進一步行動，我們正試圖在今年早些時候採取更多行動，這樣我們可以獲得更好的運行率。所以會有一些波動，我認為會在今年年初，然後隨著我們進入今年下半年然後進入 24 年，它應該會平穩下來。

So David, in terms of volatility, a big part of this is to build a more consistent, stable earnings profile. And so the volatility has really been on the velocity of assets and that's a big part of the overall equation where you're looking at the risk reward of what you're doing in terms of yield. And then also, as Paul said, addressing the expense side as well.

因此，大衛，就波動性而言，其中很大一部分是為了建立更加一致、穩定的收益狀況。因此，波動性確實影響了資產的流通速度，這是整體方程式的重要組成部分，在這個方程式中，你要根據收益率來看待你所做的事情的風險回報。然後，正如保羅所說，還要解決費用方面的問題。

Yes. And that's just an overarching comment. I mean one of our goals, too, is to take the volatility out of PacWest earnings. I think PacWest Earnings typically and historically have been a little volatile and they're hard to predict, and we're trying to get a better, smoother, more predictable earnings for The Street.

是的。這只是一個總體評論。我的意思是，我們的目標之一也是消除 PacWest 收益的波動性。我認為 PacWest 的收益通常和歷史上都有點波動，而且很難預測，我們正在努力為華爾街獲得更好、更平穩、更可預測的收益。

And then you mentioned that everything is kind of on the table in terms of potentially selling the premium finance business. I'll ask the same question on the multifamily portfolio. Would you consider selling that to accelerate that off the balance sheet?

然後你提到，就可能出售高級金融業務而言，一切都擺在桌面上。我會在多戶型投資組合上問同樣的問題。您會考慮出售它以加速資產負債表之外的資產負債表嗎？

We definitely would. I believe that those are rates such that it would be very difficult to sell at this time with not accepting a pretty significant loss.

我們肯定會的。我相信這些利率使得此時很難在不接受相當大的損失的情況下出售。

Did you mention -- and did you mention on the Civic portfolio, $3.3 billion, did you say what the right size, how much of that could come down over time?

你有沒有提到——你有沒有提到 Civic 的投資組合，33 億美元，你有沒有說合適的規模，其中有多少會隨著時間的推移而下降？

Well, I think you're going to see it definitely come down. Again, we just installed Mark in there about -- he's been there for about a week. And we're still trying to figure out the business PacWest had really adopted sort of a decentralized hands off method when they acquired it, and we're in there trying to figure it out and try to figure out what type -- what offerings we're going to keep and which offerings we're going to eliminate.

好吧，我想你肯定會看到它下降。同樣，我們剛剛將 Mark 安置在那裡——他已經在那裡待了大約一個星期。我們仍在努力弄清楚 PacWest 在收購它時是否真的採用了一種分散的不干涉方法，我們在那裡試圖弄清楚它並試圖弄清楚是什麼類型——我們提供什麼產品將保留哪些產品，我們將取消哪些產品。

And of course, we had bought flow from the former (inaudible) in the past and like the asset. And -- but we're as familiar with the business. And so we like the asset. It's just trying to find the right size within our risk profile and our capital base going forward.

當然，我們過去曾從前者（聽不清）那裡購買過流量，並且喜歡資產。而且 - 但我們對業務非常熟悉。所以我們喜歡這項資產。它只是試圖在我們的風險狀況和我們未來的資本基礎中找到合適的規模。

But again, overall, I mean, it's around 10% of our earning assets, and we are going to shrink it below that. I think 10% is too big of a chunk, and we are also -- the markets are opening up a little better in that area, and we are also looking at trying to sell some of that portfolio just to bring it down.

但總的來說，我的意思是，它大約占我們盈利資產的 10%，我們將把它縮減到這個水平以下。我認為 10% 太大了，而且我們也是——該地區的市場開放得更好一些，我們也在考慮嘗試出售部分投資組合，只是為了降低它。

And the last one for me is on venture banking. I noticed on Slide 11, you mentioned the FTX situation. I was curious, in what way does FTX impact your business? Are you guys banking crypto customers?

最後一個對我來說是風險銀行業務。我在幻燈片 11 上註意到，您提到了 FTX 的情況。我很好奇，FTX 對您的業務有何影響？你們是銀行加密客戶嗎？

No, this is Mark Yes, the way it impact is very simple, just increased scrutiny and responsibility and accountability by the VCs to their investors. So greater diligence, a slower cadence of deals.

不，這是馬克 是的，它的影響方式非常簡單，只是增加了風險投資公司對其投資者的審查和責任。因此更加勤奮，交易節奏更慢。

David, to be clear, we do not have any direct crypto asset exposure.

大衛，需要明確的是，我們沒有任何直接的加密資產風險敞口。

That's correct.

這是正確的。

We'll take our next question from Andrew Terrell from Stephens.

我們將從 Stephens 的 Andrew Terrell 那裡回答下一個問題。

Maybe just to start, I wanted to ask on the 30- to 89-day past due loans. I know those can specifically in Civic kind of bounce around a bit quarter-to-quarter. I guess since quarter end, have you seen the 30 to 89 past dues move lower? And if so, can you quantify the magnitude? And also whether or not you see any loss content there?

也許只是開始，我想詢問 30 到 89 天的逾期貸款。我知道那些特別是在 Civic 中可以按季度反彈。我想自季度末以來，您是否看到 30 至 89 的逾期會費走低？如果是這樣，你能量化其幅度嗎？還有你是否在那裡看到任何丟失的內容？

Yes. So the answer is yes. It was kind of a confluence of how the month ended there and some still over from December. That number has come down pretty sizably already in the month. And so no, we're not worried about the -- any particular fee or anything there. It's just kind of an ebbs and flow for the month ended.

是的。所以答案是肯定的。這是一個月結束的方式和一些從 12 月開始結束的匯合點。這個數字在本月已經大幅下降。所以不，我們不擔心 - 任何特定的費用或那裡的任何東西。這只是一個月結束時的潮起潮落。

And growth in the quarter as well. But again, ebbs and flows, some noise as you get, especially near year-end.

本季度的增長也是如此。但同樣，潮起潮落，你會聽到一些噪音，尤其是在接近年底的時候。

Yes. Okay. And then can you remind us the reserve you have against the civic portfolio? I know it's a bit shorter duration?

是的。好的。然後你能提醒我們你對公民投資組合的儲備嗎？我知道它的持續時間有點短？

Yes. I don't think we've disclosed the specific reserves by portfolio, but you're right. For one of the products inside of Civic, it's 12 months. Our overall loss experience in 2022 is 8 bps. So you would imagine with a very low loss experience and a short tenure, I kind of leave you were the CECL reserves come out.

是的。我認為我們沒有按投資組合披露具體儲備，但你是對的。對於 Civic 內部的一種產品，它是 12 個月。我們在 2022 年的整體損失經驗是 8 個基點。所以你會想像，如果損失非常低，任期很短，我就會離開你，因為 CECL 儲備金出來了。

Yes. Okay. And then maybe just a bigger picture. It's really good to see this plan announced and Paul, congrats on announcing in short order. So in a bigger picture, can you help us understand how aligned you and the remainder of the management team is with kind of investors in terms of this plan, I guess, our incentive compensation targets aligned fully with this plan. Can you maybe just speak to that?

是的。好的。然後也許只是一個更大的圖景。很高興看到這個計劃的宣布，保羅，祝賀你很快就宣布了。因此，從更大的角度來看，你能否幫助我們了解你和管理團隊的其他成員在這個計劃方面與投資者的一致程度，我想，我們的激勵薪酬目標與這個計劃完全一致。你能談談嗎？

Yes. So this plan was put together, I brought the executive team together and we came up with this plan together. So there's -- there should be 100% buy-in, so very close connection. And then also, I would tell you that some of our overall gold targets that we have announced are in our incentive for 2023.

是的。所以這個計劃被放在一起，我把執行團隊召集在一起，我們一起想出了這個計劃。所以 - 應該有 100% 的支持，所以聯繫非常緊密。然後，我還要告訴你，我們宣布的一些總體黃金目標包含在我們 2023 年的激勵措施中。

We'll take our next question from David Long from Raymond James.

我們將從 Raymond James 的 David Long 那裡回答下一個問題。

Paul, in July, you talked about there be some holes in technology given the number of acquisitions that PacWest had put together. I want to see how the -- this improving your technology platform coincides with your new decisions to improve overall operating efficiency?

Paul，在 7 月份，您談到了 PacWest 合併的收購數量在技術上存在一些漏洞。我想看看 - 這種改進您的技術平台如何與您提高整體運營效率的新決定相吻合？

Yes. So I mean, we're still on the same plan for technology. It's exactly -- it's everything we need to do to be a bank in 2023. And Mark Yung, who's on the call, is in charge of that vision for new technology. Maybe Mark, can you give a quick rundown on that?

是的。所以我的意思是，我們仍然在製定相同的技術計劃。正是——這就是我們要在 2023 年成為一家銀行所需要做的一切。正在接聽電話的 Mark Yung 負責新技術的願景。也許馬克，你能簡要介紹一下嗎？

Yes. I mean, our technology is very much centered around 3 values. One of them is cloud. Second one is really our digital banking API strategy. And our third one our data stream. And those are fundamentally untouched. Obviously, we are focused here on operational efficiencies. So as Kevin mentioned, we're looking at revisiting every project, revisiting milestones, et cetera. But fundamentally, very much committed to the movement forward on those three fronts.

是的。我的意思是，我們的技術主要圍繞 3 個價值觀。其中之一是雲。第二個是我們的數字銀行 API 策略。第三個是我們的數據流。而那些基本上沒有受到影響。顯然，我們在這里關注的是運營效率。正如凱文所說，我們正在考慮重新審視每個項目、重新審視里程碑等。但從根本上說，非常致力於在這三個方面向前推進。

Our next question comes from Christopher Marinac from Jane Janney Montgomery Scott.

我們的下一個問題來自 Jane Janney Montgomery Scott 的 Christopher Marinac。

Just want to circle back on deposits from a big picture beyond just the venture that you and Mark had described. can the pricing on deposits alleviate anytime this year? I presume it's not this quarter, but just kind of want to compare the prices you have in paying the past 2 quarters and sort of what is possible as you continue to focus on the core deposit outlook?

只想從大局中回顧存款，而不僅僅是你和馬克所描述的冒險。存款定價今年能否緩和？我想這不是這個季度，而是想比較一下過去兩個季度支付的價格，以及在您繼續關注核心存款前景時可能發生的情況？

So I think deposits are going to be very challenging in 2023. I've read a lot of the earnings announcements from other banks and deposits, liquidity are getting a little stretched in the industry. We're no different than that. I would -- we've got another couple of rate bumps. I think that the yield on deposits or the rate on deposits are going to remain sort of flat throughout the year. We're hoping that with mix changes, we can lower the cost. One of the things that our loan committee were requiring that you've got to have a deposit in order to get a loan, and we're challenging all of our lenders this year, and we're putting it in their incentives where they've got to gather deposits and a significant amount of deposits this year. We also have the standard CD specials, which aren't going to help rate, it will just help the volume of deposits, but that's sort of as I see deposits for 2023.

所以我認為存款在 2023 年將非常具有挑戰性。我已經閱讀了很多其他銀行和存款的收益公告，該行業的流動性有點緊張。我們和那沒什麼不同。我會 - 我們還有另外幾次利率上漲。我認為存款收益率或存款利率全年將保持平穩。我們希望通過混合變化，我們可以降低成本。我們的貸款委員會要求你必須有存款才能獲得貸款的其中一件事，我們今年正在挑戰我們所有的貸方，我們將其放在他們的激勵措施中今年必須收集存款和大量存款。我們也有標準的 CD 特價，這不會幫助利率，它只會幫助存款的數量，但這有點像我看到的 2023 年的存款。

And I'll add to that. We do expect two more Fed rate increases, 25 basis points each. And so we have had a cycle to date, overall deposit beta 34%. So we do anticipate some beta associated with that, some pressure in the first half of the year and then alleviate in the second half of the year. So our net interest margin possibly decreasing slightly first half and then increasing potentially above end of 2022 levels by end of year. So we're in an unprecedented period where deposit pricing where rates increased so quickly that deposit pricing fall and it takes a little time with our asset-sensitive balance sheet for the loan beta to catch up. So we should see some of that loan beta catching up here in the second half of the year and into next year.

我會補充一點。我們確實預計美聯儲還會加息兩次，每次加息 25 個基點。所以我們有一個迄今為止的周期，整體存款貝塔 34%。因此，我們確實預計與此相關的一些貝塔，今年上半年的一些壓力，然後在下半年減輕。因此，我們的淨息差可能會在上半年略有下降，然後可能會在年底前增加到 2022 年底的水平以上。因此，我們正處於一個前所未有的時期，存款定價的利率上漲如此之快以至於存款定價下降，我們對資產敏感的資產負債表需要一點時間才能趕上貸款貝塔。因此，我們應該會在今年下半年和明年看到一些貸款貝塔值趕上來。

I think the bigger thing when you look at the P&L, though, Chris, is going to be the interplay between the remix on both sides of the balance sheet from both lower-yielding loans to higher-yielding loans and then on the deposit side. So there's going to be a lot of movement there. And I think in any particular quarter, you could see that bounce around. But the goal is obviously driving increased profitability. So you see the margin increase over time.

不過，克里斯，我認為當你查看損益表時，更重要的是資產負債表兩邊從低收益貸款到高收益貸款再到存款方面的重新組合之間的相互作用。所以那裡會有很多動作。而且我認為在任何特定的季度，你都可以看到這種反彈。但目標顯然是提高盈利能力。所以你會看到利潤隨著時間的推移而增加。

No, that's all very helpful. And Bill, to your point, you can see that with the loan production yield just on its own this past quarter, to your point. There was once a team of folks at PacWest, several acquisitions ago, who were dedicated on just doing deposits, and we're incented as such. Is that something that can still work in 2023, 2024 as sort of dedicated teams to sell deposits only?

不，這一切都非常有幫助。比爾，就你的觀點而言，你可以看到上個季度的貸款生產收益率就其本身而言，就你的觀點而言。在幾次收購之前，PacWest 曾經有一群人專注於存款，我們也因此受到激勵。這是否仍然可以在 2023 年、2024 年作為專門的團隊來出售存款？

I mean, listen, our business has always been deposit focus. So there's always been teams of people focused on deposits. And I would tell you, if you were on the internal call yesterday, Paul was pretty clear about it, it's all about deposits, deposits, deposits. So it's not just one group, Chris. It's everybody, from the lenders to the top of the house all the way to the front line. It is a reinvigorated core value.

我的意思是，聽著，我們的業務一直是存款重點。所以總是有一群人專注於存款。我會告訴你，如果你昨天參加了內部電話會議，保羅就很清楚了，這都是關於存款、存款、存款的。所以這不僅僅是一組，克里斯。每個人都是，從貸方到高層一直到前線。這是一個重振的核心價值。

And that's -- I mean that's the secret sauce of banking is low-cost deposits. And that's why we bother with a bank charter and deal with regulation is to get those deposits. So I mean, that's our biggest focus all the time.

那就是——我的意思是銀行業的秘密武器是低成本存款。這就是為什麼我們費心銀行章程和處理監管是為了獲得這些存款。所以我的意思是，這是我們一直以來最大的關注點。

And we're tweaking incentive programs to be more deposit-focused as well as Paul mentioned earlier, that loans -- any loans that are approved, in general, need to have a deposit relationship.

我們正在調整激勵計劃，使其更加以存款為重點，正如保羅之前提到的那樣，貸款——任何獲得批准的貸款，一般來說，都需要有存款關係。

Great. Last question for me just goes back to the small uptick we saw in the criticized loans. Is that something that is possible this year? I know you mentioned obviously, recession influences some of that. Just curious if there's any particular background this quarter?

偉大的。我的最後一個問題只是回到我們在受批評的貸款中看到的小幅上升。今年有可能嗎？我知道你顯然提到過，經濟衰退會影響其中一些。只是好奇本季度是否有任何特殊背景？

Yes. So if you're talking about on the nonaccruals, the bump there was, in particular, related to some Civic loans. We've already seen some of that back off, and we have an NPL sale that is being teed up. So we feel that's kind of ordinary course, Chris. I mean we did an NPL sale in, I think, last quarter, and we're not seeing anything indicative in credit. As Paul said, we feel really good about where the book is. The team has done a great job over the past years in terms of making sure that the underwriting is solid, and our team has going through everything with a fine [tooth cone.] And if you were to look at our nonaccruals, for example, it's really granular in there. Our top 20 NPLs, for example, added about $3 million. So -- and they're all kind of stories and individual stuff. But if you look at the absolute level of nonperformers at 36 basis points, it's pretty low compared to history. So you could see things bounce around. We don't see anything driving that, but just realize we're kind of operating at the lower end of stuff, but we're not concerned about anything in particular, although we are obviously paying a lot of attention given to where we think things are going.

是的。因此，如果你談論的是非應計項目，那麼特別是與一些公民貸款有關的增長。我們已經看到其中一些退縮了，我們正在籌備一項不良貸款出售。所以我們覺得這是一種普通的課程，克里斯。我的意思是，我認為上個季度我們進行了不良貸款出售，但我們沒有看到任何跡象表明信貸。正如保羅所說，我們對這本書的位置感到非常滿意。在過去的幾年裡，團隊在確保承保穩固方面做得很好，我們的團隊已經通過精細的[牙錐]完成了所有事情。例如，如果你要看看我們的非應計項目，裡面真的很細。例如，我們排名前 20 位的不良貸款增加了約 300 萬美元。所以——它們都是故事和個人的東西。但如果你看一下 36 個基點的表現不佳的絕對水平，與歷史相比，它是相當低的。所以你可以看到事情反彈。我們沒有看到任何驅動因素，但只是意識到我們有點在低端運營，但我們並不特別關心任何事情，儘管我們顯然非常關注我們認為的地方事情正在發生。

and we'll next go to Jon Arfstrom from RBC Capital Markets.

接下來我們將拜訪 RBC Capital Markets 的 Jon Arfstrom。

A couple of model questions and a couple of strategic ones. Kevin, on the margin guide, I think you talked about 2022 as the baseline. Is that what you're thinking [3 50] is the baseline we should be thinking about for the '23 average margin?

幾個模型問題和幾個戰略問題。凱文，關於利潤率指南，我想你談到了 2022 年作為基線。你在想 [3 50] 是我們應該考慮的 '23 平均利潤率的基線嗎？

Yes, [3 40 to 3 50] average margin probably getting lower first half of the year and then increasing latter half.

是的，[3 40 至 3 50] 平均利潤率可能在上半年下降，然後在下半年上升。

Okay. That's good. And then with the flat loan guide, are you basically saying relatively flat earning assets, but the churn in earning assets likely leads to that lift later in the year. Is that another fair way to think about it?

好的。那挺好的。然後，對於持平貸款指南，你基本上是在說收入相對持平的資產，但收入資產的流失可能會導致今年晚些時候出現這種情況。這是另一種公平的思考方式嗎？

I think that's a good way to think about it.

我認為這是一個很好的思考方式。

Okay. On provision, you guys are talking about flat reserves, flat loans, lower risk loans and clean credit, which suggests to me that I may not need a provision in the model for 2023, but what kind of...

好的。關於準備金，你們談論的是固定準備金、固定貸款、低風險貸款和清潔信貸，這對我來說意味著我可能不需要在 2023 年的模型中提供準備金，但什麼樣的……

And we just got to preface that again with the year we're in, is that we could have a recession so that could be a little dynamic. We're planning, at this point in time, that it will not be dynamic, but we have to remember that.

我們只是在我們所處的這一年再次開始，我們可能會遇到經濟衰退，所以這可能會有點活力。我們計劃，在這個時間點，它不會是動態的，但我們必須記住這一點。

There's some replenishment of small charge-offs that happen over time a mix shift. So there will still be some provision we anticipate, but not large.

隨著時間的推移，混合班次會發生一些小額沖銷的補充。因此，我們預計仍會有一些規定，但不會很大。

So on a quarterly basis you're talking about you're not insignificant from what we've seen in prior quarters?

因此，您每季度都在談論您與我們在前幾個季度看到的情況相比並不微不足道？

Good way to say it. Yes, not insignificant what we've seen in 2022.

說的好方法。是的，我們在 2022 年看到的情況並非微不足道。

Okay. Okay. Good. In terms of the investments and some of the maybe changes you're going to try to make, do you need to make investments in lenders or refresh the Community Bank loan production machine?

好的。好的。好的。就投資和您將嘗試做出的一些可能改變而言，您是否需要對貸方進行投資或更新社區銀行貸款生產機器？

2022 was a really good year for loan growth. We've got very seasoned, experienced lending teams. So I don't really anticipate we need to do anything like that. Again, I think our core competency here is credit.

2022 年是貸款增長的好年頭。我們擁有非常老練、經驗豐富的貸款團隊。所以我真的不認為我們需要做那樣的事情。同樣，我認為我們的核心競爭力是信譽。

And then I guess the last one of all the metrics that you laid out, the one that stands out to me is the top quartile EPS growth. And can you talk to us a little bit about that? I know there's some restructuring and refreshing that you're doing, but is this something that we can start to see this momentum later in 2023?

然後我猜你列出的所有指標中的最後一個，對我來說最突出的是前四分之一的每股收益增長。你能和我們談談嗎？我知道你們正在進行一些重組和更新，但我們是否可以在 2023 年晚些時候開始看到這種勢頭？

Jon, I think that right now, that there's a lot of wood to chop, right? Paul and -- Paul has been here as CEO for 28 days, I think, it is?

喬恩，我想現在有很多木頭要砍，對吧？保羅和 - 保羅在這裡擔任首席執行官已經 28 天了，我想，是嗎？

Yes.

是的。

I mean I think that there's a clear plan, a clear vision of where we want to get to. And if we can execute on that plan, I think the results are going to be pretty good for shareholders. And I think that the metrics we laid out are not the ultimate goal. This is kind of where we think there are. But I think if we do what we think we can do, we think that's possible. And listen, like we're not trying to be a mediocre, right? I mean we're trying to push ourselves to generate really strong top quartile results.

我的意思是我認為有一個清晰的計劃，一個我們想要到達的地方的清晰願景。如果我們能夠執行該計劃，我認為結果對股東來說將是非常好的。而且我認為我們制定的指標並不是最終目標。這是我們認為存在的地方。但我認為，如果我們做我們認為可以做的事，我們認為這是可能的。聽著，就像我們不想成為一個平庸的人一樣，對吧？我的意思是我們正在努力推動自己產生真正強大的前四分位數結果。

Absolutely.

絕對地。

Yes, the EPS growth, one is the one that stands out, right? The others with efficiency and returns and capital (inaudible) something got to be a little bit (inaudible) top quartile and EPS growth.

是的，每股收益增長，一個是最突出的，對吧？其他具有效率、回報和資本（聽不清）的東西必須有點（聽不清）前四分之一和每股收益增長。

Yes. I think if you look at the core earnings power of PacWest historically, I don't think that it's changed. And I think the goal is to take what has been top quartile and drive it better. And if we can get there from here, you will generate those types of results.

是的。我認為，如果你從歷史上看 PacWest 的核心盈利能力，我認為它沒有改變。而且我認為目標是取得最高四分位數並更好地推動它。如果我們可以從這裡到達那裡，您將產生這些類型的結果。

And for our last question, we'll go back to Matthew Clark from Piper Sandler.

對於我們的最後一個問題，我們將回到 Piper Sandler 的 Matthew Clark。

Just a couple of questions around the margin outlook. Can you speak to the cost of those FHLB borrowings that you ran off and the securities yields as well? I mean I would have thought you would have a pickup in the spread for the upcoming quarter to help mitigate some pressure here?

關於利潤率前景的幾個問題。你能談談你跑掉的那些 FHLB 借款的成本以及證券收益率嗎？我的意思是，我本以為下個季度的價差會有所回升，以幫助緩解這裡的一些壓力？

That's right, Matthew. So the securities we've wound down, we're yielding about 3.93%. And we paid out FHLB of about 4.6%. So yes, there was a benefit there, but we also have loan growth that offset much of that, but that should be a benefit through the year that negative yield that we were experiencing.

沒錯，馬修。因此，我們清盤的證券收益率約為 3.93%。我們支付了大約 4.6% 的 FHLB。所以是的，那裡有好處，但我們也有貸款增長抵消了大部分，但這應該是我們經歷的負收益率全年的好處。

And that was really late in the quarter.

那真的是在本季度末。

That's right.

這是正確的。

Okay. And then just the spot rate on interest-bearing deposits at the end of the year if you had it or total deposits by the one?

好的。然後是年末生息存款的即期利率（如果有的話）或存款總額？

Yes. spot rate on interest-bearing deposits was trending to low [2 50s.]

是的。計息存款的即期利率趨於低 [2 50s.]

Okay. Okay. And then just commentary around low-cost core deposits getting to 40%. It doesn't necessarily mean noninterest-bearing that are at 33%. I guess, were you trying to suggest the noninterest-bearing, you want to get that to 40%? Or is there some other portion of your deposit base you view as low cost that will help you get there?

好的。好的。然後只是關於低成本核心存款達到 40% 的評論。這並不一定意味著 33% 的無息。我想，你是不是想建議不計息，你想把它提高到 40%？或者您的存款基礎中是否有您認為低成本的其他部分可以幫助您實現目標？

Yes. Yes, we're trying to take the DDA base up to 40%.

是的。是的，我們正在努力將 DDA 基數提高到 40%。

And we have no further questions. I'll turn it back to our speakers for any closing remarks.

我們沒有其他問題了。我會把它轉回給我們的發言人聽取任何結束語。

Well, first of all, we want to thank all of you for calling in and your interest in PacWest Bancorp. Our numbers are out on our online, and we're happy to talk to you at any time. So again, I appreciate you guys calling in.

好吧，首先，我們要感謝大家的來電以及您對 PacWest Bancorp 的興趣。我們的電話號碼已在網上公佈，我們很樂意隨時與您交談。再次感謝你們的來電。

Thank you. Ladies and gentlemen, that does conclude today's conference. We appreciate your participation, and have a wonderful day.

謝謝。女士們，先生們，今天的會議到此結束。感謝您的參與，祝您度過愉快的一天。

Thank you.

謝謝。