Preferred Bank (PFBC) 2025 Q3 法說會逐字稿

Good morning, and welcome to the Preferred Bank third-quarter 2025 earnings conference call. (Operator Instructions). Please note, this event is being recorded.

早安，歡迎參加 Preferred Bank 2025 年第三季財報電話會議。（操作說明）請注意，本次活動正在錄影。

I would now like to turn the conference over to Jeffrey Haas with Financial Profiles. Please go ahead.

現在我將把會議交給 Financial Profiles 的 Jeffrey Haas 來主持。請繼續。

Thank you, Kim. Hello, everyone, and thank you for joining us to discuss Preferred Bank's financial results for the third quarter ended September 30, 2025. With me today from management are Chairman and CEO, Li Yu; President and Chief Operating Officer, Wellington Chen; Chief Financial Officer, Edward Czajka; Chief Risk Officer, Nick Pi; and Deputy Chief Operating Officer, Johnny Hsu. Management will provide a brief summary of the results, and then we will open up the call to your questions.

謝謝你，金。大家好，感謝各位參加本次會議，共同探討 Preferred Bank 截至 2025 年 9 月 30 日的第三季財務表現。今天與我一同出席的管理層成員有：董事長兼首席執行官李宇；總裁兼首席營運官陳偉霆；首席財務官愛德華·查伊卡；首席風險官尼克·皮；以及副首席營運官約翰尼·許。管理層將簡要總結結果，然後我們將開放問答環節，回答您的問題。

During the course of this conference call, statements made by management may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions that may or may not prove correct.

在本次電話會議期間，管理階層所發表的聲明可能包含 1995 年《私人證券訴訟改革法案》所界定的前瞻性聲明。此類前瞻性陳述基於某些特定假設，而這些假設可能正確，也可能不正確。

Forward-looking statements are also subject to known and unknown risks, uncertainties and other factors relating to Preferred Bank's operations and business environment, all of which are difficult to predict and many of which are beyond the control of Preferred Bank.

前瞻性陳述也受到與 Preferred Bank 的營運和商業環境相關的已知和未知風險、不確定性和其他因素的影響，所有這些因素都難以預測，其中許多因素超出了 Preferred Bank 的控制範圍。

For a detailed description of these risks and uncertainties, please refer to the SEC required documents the bank files with the Federal Deposit Insurance Corporation, or FDIC. If any of these uncertainties materialize or any of these assumptions prove incorrect, Preferred Bank's results could differ materially from its expectations as set forth in these statements. Preferred Bank assumes no obligation to update such forward-looking statements.

有關這些風險和不確定性的詳細描述，請參閱銀行向聯邦存款保險公司（FDIC）提交的美國證券交易委員會（SEC）要求的文件。如果這些不確定因素中的任何一個成為現實，或者這些假設中的任何一個被證明是錯誤的，Preferred Bank 的表現可能與這些聲明中所述的預期存在重大差異。Preferred Bank不承擔更新此類前瞻性聲明的義務。

At this time, I'd like to turn the call over to Mr. Li Yu. Please go ahead.

此時，我想把電話交給李宇先生。請繼續。

Thank you. Good morning. I'm very pleased to report to our shareholders that we have a record earnings per share of $2.84 a share for the third quarter of 2025. Our net income for the quarter was $35.9 million. Both numbers compare very handsomely with previous quarters.

謝謝。早安.我非常高興地向股東們報告，2025 年第三季度，我們每股盈餘創下歷史新高，達到 2.84 美元。本季淨收入為3590萬美元。這兩個數字與前幾季相比都非常出色。

This quarter, our credit quality has improved. Non-performing loans has reduced from $52 million to $17 million and largely because of one loan of $37 million that we have closed and moved to OREO. But the good news is that OREO was sold as of today, so cover for a reasonably good gain okay. We tried very hard tried to close it on September 30, but in make. All other matrix of the credit quality seems to be stable and have taken a look about all the charge-offs for the year, they totaled a very acceptable $1.8 million.

本季度，我們的信貸品質有所改善。不良貸款已從 5,200 萬美元減少到 1,700 萬美元，這主要是因為我們已經結清了一筆 3,700 萬美元的貸款，並將其轉為 OREO。但好消息是，OREO股票今天已經售出，所以可以平倉獲得相當不錯的收益。我們非常努力地嘗試在 9 月 30 日關閉它，但在 make 中。信用品質的其他所有指標似乎都很穩定，並且查看了全年的所有沖銷情況，總計為 180 萬美元，這是非常可以接受的。

This quarter, we had some reasonable loan growth and deposit growth. Loan growth, 2.3% and of $133 million. Deposits grew 2.5% or $151 million. It seems to us that the marketplace our shareholder or our customers has really become a little bit more optimistic in their businesses. But still remain quite cautious because there's a whole lot of uncertainties still remaining in our economy.

本季度，我們的貸款和存款均實現了較合理的成長。貸款成長2.3%，達到1.33億美元。存款成長2.5%，即1.51億美元。在我們看來，市場、我們的股東或客戶對他們的業務確實變得更加樂觀了。但仍要保持謹慎，因為我們的經濟仍有許多不確定因素。

Looking forward to the fourth quarter of 2025, we think there will be some reasonable loan growth, okay. Hopefully, that were matched the number of the third quarter. Our net interest income and net interest margin both improved in the third quarter from previous quarters. We have hold our operating overhead on noninterest expense pretty steady as compared to previous quarters, okay? Because of the increased net interest income okay, efficiency ratio now is less than 30% and all the aspect of the operation seems to be pretty stable.

展望 2025 年第四季度，我們認為貸款成長會比較合理，沒問題。希望這個數字與第三季的數字相符。第三季度，我們的淨利息收入和淨利差均較前幾季有所改善。與前幾季相比，我們的非利息支出營運費用基本上保持穩定，可以嗎？由於淨利息收入增加，目前效率比率低於30%，營運的各個方面似乎都相當穩定。

And during the third quarter, we have $6.3 million of our own shares, okay? Having said all the good things about this quarter, that's something that we have to admit. We found ourselves making a mistake in the past in calculating the diluted earnings per share numbers as of June 30, 2025, and resulted underreporting the net income for the first half by $0.05, I mean. But this number has been properly updated, industry reports up year today number.

第三季度，我們持有價值 630 萬美元的自有股票，懂嗎？儘管我們對本季讚譽有加，但這是我們不得不承認的一點。我們過去在計算截至 2025 年 6 月 30 日的稀釋每股收益時犯了一個錯誤，導致上半年的淨收入少報了 0.05 美元。但據業內報道，該數字已正確更新，較去年同期有所上升。

Thank you so very much, and I'd like to answer your question now.

非常感謝，我現在就來回答您的問題。

(Operator Instructions) Gary Tenner, D.A. Davidson.

（操作說明）Gary Tenner，D.A. Davidson。

I was hoping you could update us a little bit on just where the loan portfolio should stay from a floating rate component. I think as we've gone through the last several quarters of -- had the breakouts late last year and then the 1 in September, I think you would have cleared at least some portion of the floors you have in the portfolio. So could you talk about kind of the variable rate or the floating rate a bit of the portfolio and where the floors are at this point?

我希望您能給我們簡要介紹一下，浮動利率貸款組合應該保持怎樣的水平。我認為，隨著過去幾個季度的過去——去年年底的突破和9月份的1次突破——我認為你至少已經清理了投資組合中的一些低點。那麼，您能否談談投資組合中的浮動利率或可變利率，以及目前的最低利率是多少？

Yes, Gary. So as of 9/30, about 29% of the book now is either fixed rate or long adjustable and then 71% is floating. Of that 71%, 98% has floors on them, although we've talked about before, some of those are not in the money. So we have about 1.6 million of floors -- of loans with floors that would kick in within the next 100 basis points of decline.

是的，加里。截至 9 月 30 日，該債券市場約 29% 的債券為固定利率或長期可調利率，其餘 71% 為浮動利率。在這 71% 的房屋中，98% 已經鋪設了地板，雖然我們之前也討論過，但其中一些房屋並不盈利。因此，我們有大約 160 萬筆貸款設有最低還款額——這些貸款的最低還款額將在接下來的 100 個基點的下跌中生效。

Right now, we only have about $55 million that are at or below the floor where the floor is kicking in. So we still have a ways to go for a lot of these loans before the floors start to become meaningful.

目前，我們只有大約 5500 萬美元處於或低於最低限度，而最低限度即將生效。因此，在許多貸款的最低還款額開始變得有意義之前，我們還有很長的路要走。

Great. And then -- just as it relates to the buyback, I know some activity this quarter, can you talk about just price sensitivity around the buyback?

偉大的。然後——就股票回購而言，我知道本季會有一些相關活動，您能談談股票回購的價格敏感度嗎？

Well, we start to measure the buyback against the income level we have and the share price we have and from quarter-to-quarter, from month to month, we will review our position come to the point that how much we wanted through the buyback has something to do with our growth rate, too. As you know, Gary, the growth rate is to be stronger. Our buyback may have slowed down a little bit. But we are measuring it based on there's no set formula for us.

我們會開始根據我們的收入水平和股價來衡量股票回購，然後逐季度、逐月地審查我們的狀況，最終會發現，我們想要透過股票回購實現的規模也與我們的成長率有關。加里，你也知道，成長率需要更高。我們的回購速度可能稍微放緩了一些。但是，我們衡量它的標準是，沒有固定的公式可供我們參考。

Okay. Fair enough. Go ahead.

好的。很公平。前進。

No, I was just going to add to that for everyone else on the line as well. We have been active in the month of October. So we've repurchased 128,000 shares in October because we had some price softness over the last few weeks. $11.2 million, so.

不，我只是想補充一下，也方便其他在線的人。我們在十月一直很活躍。因此，由於過去幾週股價有所疲軟，我們在10月回購了12.8萬股股票，總計1,120萬美元。

I appreciate that. If I could just ask one more question. In terms of the loan yields in the quarter, was there any noise in that number? Or is that -- was it 763 a pretty clean number?

我很感激。我還能再問一個問題嗎？本季貸款收益率方面，該數字是否有任何波動因素？或者說——763 是一個相當乾淨的數字嗎？

Yes. The noise was in the prior quarter.

是的。噪音問題出現在上一季。

Adam Kroll, Piper Sandler.

亞當·克羅爾，派珀·桑德勒。

This is Adam Kroll on from Matthew Clark. So maybe just to start on the margin. I was wondering if you had the average margin in the month of September and the cost of deposits.

這裡是亞當·克羅爾，來自馬修·克拉克的報道。所以或許可以先從邊緣開始。我想問一下您能否提供九月份的平均利潤率和存款成本。

The margin for September was $3.87. Cost of deposits was $3.36.

9 月的利潤率為 3.87 美元。存款成本為 3.36 美元。

Okay. Perfect. And then how are you thinking about the margin in the fourth quarter, assuming we get a rate cut later this month in December as well? And just what do you have coming due on the CD side and kind of the rate that that's rolling off first coming on today.

好的。完美的。那麼，假設本月稍後（12 月）利率再次下調，您如何看待第四季度的利潤率？那麼，您目前有哪些定期存款即將到期？今天首先到期的利率是多少？

Okay. Well, there's a lot in that packed in there, but I'll start. First off, we got about 1.27 million -- excuse me, $1.27 billion of CDs maturing at an average rate of $410 in Q4. CDs are now coming on in the high -- mid- to high three's, so we'll expect some benefit there.

好的。嗯，裡麵包含的資訊量很大，但我先從頭說起。首先，我們有大約 127 萬——抱歉，是 12.7 億美元的 CD 在第四季度到期，平均利率為 410 美元。CD 現在的價格已經漲到了 3 多分鐘到 3 分多鐘的水平，所以我們預計會有一些收益。

In terms of the margin for Q4, given the rate cut we had in September and what we're likely to have in Q4 not as asset sensitive as we have been in the past, not only because of the larger preponderance of fixed rate and longer-dated adjustable rate loans but also due to the fact that we have many of our corporate deposit clients whose interest rates on interest checking and some money market are directly tied to Fed funds.

就第四季度的利潤率而言，考慮到我們在 9 月的降息以及我們第四季度可能面臨的情況，資產敏感度不會像過去那樣高，這不僅是因為固定利率和長期浮動利率貸款佔比較大，還因為我們有很多企業存款客戶的活期存款和部分貨幣市場利率與聯邦基金利率直接掛鉤。

So when Fed funds does move, we do get to move a fairly sizable chunk downward in terms of the pricing. So that's been very beneficial in managing the margin. And you can see it has not been declining even though we've been in a kind of a declining rate environment here.

所以當聯邦基金利率變動時，我們就能在定價方面獲得相當大的下行幅度。所以這對於管理利潤率非常有益。你可以看到，即使我們一直處於利率下降的環境中，它也沒有下降。

Got it. That's super helpful. And then last one for me. I'd be curious to know just what you're seeing on the credit migration front within criticized and cost of fund?

知道了。這非常有幫助。最後，也是我最後一個問題。我很想知道您在信貸遷移方面，在受到批評和資金成本方面，看到了哪些情況？

Well, CD migration seems to be that a pretty reasonable situation. Nick, do you want to answer that?

嗯，CD遷移似乎是相當合理的方案。尼克，你想回答這個問題嗎？

Yes. In Q3, (technical difficulty) be in line with our early expectations. So all of the probable loans also on our solutions side is also developing is expected. So we don't -- any things that some management is closely monitoring some of these things that probably have the (technical difficulty).

是的。第三季（技術難度）符合我們先前的預期。因此，我們解決方案方面所有可能的貸款也都在預期之中。所以我們沒有——任何管理層正在密切監控的事情，這些事情可能已經…（技術難題）

Andrew Terrell, Stephens.

安德魯·特雷爾，史蒂芬斯。

I wanted to check in first just on loan growth. As you hired the comments just around -- it sounds like you're hoping starting off next year at this high single-digit loan growth rate, but I'm curious, to the extent you have visibility in the fourth quarter, just how pipelines are shaping up. It sounds like just reading between the commentary that you'd expect slower growth in the fourth quarter, but just wanted to make sure I've kind of got that right.

我首先想了解一下貸款成長情況。正如你剛才提到的，你似乎希望明年能以接近兩位數的貸款成長率開局，但我很好奇，如果你對第四季度的情況有所了解，貸款管道的進展如何。從評論來看，似乎第四季的成長速度會放緩，但我只是想確認我的理解是否正確。

Yes. We think there will be growth in the first quarter. We hope that we will do as much in the third quarter, but it is still October, slightly early, okay? And seems to be the activity level seems to be maintaining at the third quarter pace. So -- but -- and we -- internally, we hope that maybe with the interest rate cut in the later part of the third quarter -- first quarter will be even more helpful to our loan growth.

是的。我們認為第一季會有成長。我們希望在第三季也能取得同樣的成績，但現在才10月份，稍微早了點，好嗎？而且，目前的活動水準似乎維持在第三季的水準。所以——但是——我們——內部希望，隨著第三季後期降息——第一季對我們的貸款成長會有更大的幫助。

But all this is still kind of up in the air situation, especially every holiday season seems to be very much different to us. Some holidays, people sinter busy and closing the loans, less on right. Some other hardships more than ever, okay? So I mean, it is something that is pretty hard for us to have a very clear picture, but the general trend is upward trend.

但這一切目前仍處於不確定狀態，尤其是每個假期對我們來說似乎都非常不同。有些假日，人們忙於處理貸款事宜，右側的情況較少。其他方面的困難比以往任何時候都多，好嗎？所以我的意思是，我們很難對這件事有一個非常清晰的了解，但整體趨勢是上升趨勢。

Okay. Great. That's good to hear. And then, Ed, if I could check in with you on just expenses you guys have been running if I back out the kind of OREO the past couple of quarters and that low $21 million territory. Just wanted to get a sense on your expectations near-term expense run rate if that's still fair approximation.

好的。偉大的。聽到這個消息真好。然後，Ed，如果我能跟你確認一下你們的營運成本，扣除過去幾季像OREO那樣的小規模營運以及2,100萬美元左右的支出，你們的營運成本是多少。我只是想了解一下您對近期支出運行速度的預期，如果這個估算仍然合理的話。

And then as we look out to 2026, anything we should be aware of kind of budget wise or just check in on kind of rate of expense growth, just general expectation?

展望 2026 年，在預算方面，或在支出成長率方面，我們應該注意些什麼？或者說，我們應該對整體預期作何反應？

Well, yes, as you said, we had a small OREO piece for this quarter. So we came in at $21.5 million on noninterest expense. I would expect to see around $22 million to $22.5 million going forward and then probably going up anywhere from $250 to $500 a quarter in '26.

是的，正如你所說，我們本季只做了一小塊奧利奧餅乾。因此，我們的非利息支出為 2,150 萬美元。我預計未來一段時間內收入將在 2,200 萬美元至 2,250 萬美元之間，然後到 2026 年，每季可能會增加 250 萬美元至 500 萬美元。

Great. I appreciate it. And then I actually got a question on the deposit composition this quarter is a really strong growth. And I think it's the interest-bearing demand category a little less so in some of the time buckets.

偉大的。我很感激。然後，我實際上被問到本季度存款組成的情況，這確實是一個強勁的增長。而且我認為在某些時間內，計息需求類別的影響會略小。

I'm curious if there was any contemplated mix shift that you guys did? And that's just how deposits came in this quarter? Just any color on the flows in the specific deposit buckets would be helpful.

我很好奇你們有沒有考慮過調整混音？這就是本季存款的全部金額嗎？如果能用任何顏色來表示特定存款桶中的流量，那就很有幫助了。

Well, on a strategic basis, okay, we certainly like to increase our demand deposit and low-cost deposits. But they're harder and harder to get nowadays because all the other institutions that have large cash balances all like to be paid some more for their money. So -- this is a trend that more cash is moved from the DDA account and noninterest-bearing deviation to the interest-bearing DDA account. And having said that, our job, I think, is to manage the cost interest-bearing DDA accounts properly, okay, and going to the future from the strategic rescale.

從策略角度來看，我們當然希望增加活期存款和低成本存款。但如今這些債券越來越難獲得，因為所有其他擁有大量現金餘額的機構都希望獲得更高的投資回報。所以——這是一個趨勢，即越來越多的現金從活期存款帳戶和不計息的偏差轉移到計息的活期存款帳戶。話雖如此，我認為我們的工作是妥善管理計息的DDA帳戶，好嗎？並從策略調整的角度展望未來。

And other than that, it's banking normal. Whatever we have a reasonable cost, we'll take it in. And when it is available, we take it and hopefully, that becomes the funding base for world.

除此之外，銀行業務一切正常。只要價格合理，我們都會收。當有資金可用時，我們會利用它，並希望這能成為世界的資金基礎。

Andrew, we also, with this quarter with the fairly strong deposit growth, we're able to let some of our brokerage CDs run off and not renew as well. So that was advantageous.

Andrew，我們這邊，由於本季存款成長相當強勁，我們也能夠讓一些經紀公司的定期存款到期不再續約。所以這是有利的。

Yes. Got it. Okay. If I could actually just sneak one more in. Do you have the specific dollar estimate of the expected OREO gain in the fourth quarter?

是的。知道了。好的。如果我能再偷偷加一個就好了。您能否提供第四季OREO預期收益的具體美元估值？

Probably into -- I mean, $3 million to $4 million range.

大概要到──我的意思是，300萬到400萬美元之間。

David Feaster, Raymond James.

David Feaster，Raymond James。

Everybody I just wanted to switch back to maybe the loan growth side. I mean, ex the OREO transfer, you're in the low double digits. It sounds like you're expecting growth to kind of remain relatively stable, I mean, which is really strong. I'm just curious could you touch on how demand is trending maybe a little bit of color on the pipeline, how new origination yields are? And just where are you seeing more opportunities today?

我只是想回到貸款成長方面。我的意思是，例如奧利奧的轉讓，你的轉讓費只有兩位數左右。聽起來你預計成長將保持相對穩定，我的意思是，這真的很強勁。我只是好奇，您能否談談需求趨勢，或許可以稍微介紹一下在建專案的情況，以及新貸款的收益率如何？那麼，您目前認為哪些方面有更多機會呢？

And is this a function of you all gaining share or maybe some of that uncertainty that we've talked about in the past, maybe getting more confidence in the economy or anything? Just kind of curious what you're seeing from that side.

這是因為你們的市佔率都在成長，還是因為我們過去討論過的某些不確定性，例如對經濟更有信心之類的原因？我只是有點好奇你從那邊看到了什麼。

I don't think you want to answer the first, and I'll add to it.

我覺得你不想回答第一個問題，那我再補充一點。

Yes. The loan growth for the fourth quarter -- I mean, for the third quarter was again on the existing, like Mr. Yu mentioned that our existing customer or confidence in that there is more activity. So the C&I increase.

是的。第四季的貸款成長－我的意思是，第三季的貸款成長再次體現在現有客戶身上，正如餘先生所提到的，我們現有的客戶或對更多業務活動的信心。因此，工商業成長。

And then other activity. It's a new relationship that we've been building on over the years and sometimes -- it takes a little bit a while to bring that in-house. So that's where we had -- and other than that, I think that our CRE and just normal CRE activity, construction loan advance. That's where we are. And that's why we're looking at the going forward, fourth quarter, looking like very similar to third quarter.

然後還有其他活動。這是我們多年來一直在建立的新關係，有時——需要一些時間才能將其融入公司內部。所以這就是我們當時的情況——除此之外，我認為我們的商業房地產和正常的商業房地產活動，建築貸款預付款。這就是我們現在的情況。因此，我們預計第四季度的情況將與第三季非常相似。

Johnny, do you want to add anything?

強尼，你還有什麼要補充的嗎？

Yes. To add to that, I think we're right. We see our teams that we've been able to see more deals coming through the pipeline -- more deals to be reviewed with more -- like Mr. Yu said, it was rate cuts and a little bit more optimistic from borrowers, there on more opportunities for us.

是的。此外，我認為我們是對的。我們看到我們的團隊正在處理更多交易——更多交易需要審查——正如餘先生所說，由於利率下調以及借款人更加樂觀，這給我們帶來了更多機會。

So I guess you're the feeling of the situation, but obviously, the common sense logic is that with the rate cuts and hopefully, it's going to be two rate cuts before the end of the year. There are many, many transactions that previously is not doable, become much doable in terms of financing is concerned. There are some people who finally willing to sell because they can get a slightly better situation in pricing. Okay and so on. So we are hopeful that, especially in the CRE side, there will be some growth.

所以我想你對目前的情況有一定感受，但顯然，常識告訴我們，隨著降息，而且希望在年底前還能降息兩次。很多以前無法完成的交易，在融資方面變得容易多了。有些人最終願意出售，因為他們可以獲得稍微好一些的價格。好的，諸如此類。因此，我們希望，尤其是在商業房地產領域，能夠出現一些成長。

And that's a great point. I mean, -- could you -- I guess first point, could you touch on maybe the competitive dynamics? And then in the past year or so, there's payoffs and paydowns have been a headwind. Has that slowed at all? Or I mean, again, to your point, maybe down, that could push more people into selling.

你說得很有道理。我的意思是，——您能否——我想先問一點，您能否談談競爭動態？而在過去一年左右的時間裡，收益和損失都成了阻礙。這種趨勢有所放緩嗎？或者我的意思是，再次回到你的觀點，也許價格下跌，這可能會促使更多的人出售商品。

Do you think payoffs and pay downs could be a bigger headwind as we look forward? Or just kind of curious what your thoughts are.

你認為展望未來，收益和支出是否會成為更大的阻力？或者只是有點好奇你的想法。

Well, in my past 34 years, payoff has always been a painful situation for us, okay? It is expected to continue, okay? And it is expected to continue in a little bit heavier pace than before because simple factors that many of the loans are all institutions that they are priced at a higher interest rate. They're -- it's currently staying on the book obviously, many, many of the borrowers seeking to lower the interest burden that refinance will become national sports okay?

嗯，在我過去的34年裡，對我們來說，獲得回報一直都是痛苦的事情，好嗎？預計這種情況還會持續，好嗎？預計這一趨勢將比以前更快，原因很簡單，許多貸款都是透過金融機構發放的，而這些機構的利率都比較高。目前，貸款仍保留在帳面上，顯然，許多藉款人為了降低利息負擔而進行再融資，這將成為全國性的熱門話題，好嗎？

And I hope what we're doing when we're getting paid off, we hope we're also getting our sales share of the paying off the other people in the situation. So hopefully, all the game is a payoff and some of the new additional origination is really a push.

我希望，當我們拿到賠償金時，我們也希望我們能從銷售收入中分得一部分，用於償還其他相關人員的債務。所以希望這一切努力都能有所回報，一些新的額外措施也能真正起到推動作用。

Okay. And okay. And then you guys have been really active managing your asset sensitivity, Ed, you've done a great job getting in front of this. It sounds like it's much less significant than it has been in the past. You've got the floors that should also help.

好的。好的。艾德，你們在資產敏感度管理方面一直非常積極，你們在這方面做得很好，提前應對了風險。聽起來它的重要性遠不如過去了。地板也應該會有幫助。

Are there any other actions that you guys -- or do you think most of that -- most of the actions that you'd be interested in making to manage your asset sensitivity, is that completed? Or are you still -- is that ongoing? Like would you expect to maybe put more into the securities book or do more fixed rate or just any other those types of maneuvers or are you pretty comfortable with where you're sitting?

你們還有其他措施嗎？或者你們認為為了管理資產敏感性，你們想要採取的大部分措施都已經完成了？還是你還在繼續嗎？例如，您是否計劃增加證券投資，或進行更多固定收益投資，或採取其他類似的策略？還是您對目前的狀況感到比較滿意？

I think that most of the things we continue doing is being proactive interest rate management. And if you remember, one time, we're 90% floating rate loan bank, now we're nearly 70% floating rate loan bank, and that takes about 1.5 years to accomplish. And we started that way back. I'm sure you remember that, okay.

我認為我們目前仍在做的，大部分工作都是積極主動地進行利率管理。如果你還記得的話，我們曾經是一家90%的浮動利率貸款銀行，現在我們是一家近70%的浮動利率貸款銀行，而這大約需要1.5年的時間才能完成。我們就是這樣開始的。我相信你一定記得這件事，好嗎？

So -- and I guess the trend is to do the best in our ability and looking at the interest rate trends and making adjustment from time to time, by switching to the more fixed rate loans or switching to the more floating rate loans. This is constantly in our DNA and that what's causing us to have acceptable return on equity, return on investment, I think the count factor.

所以——我想目前的趨勢是盡我們所能做到最好，專注於利率趨勢，並不時進行調整，例如轉向固定利率貸款或轉向浮動利率貸款。這始終融入我們的基因，正是這一點讓我們能夠獲得可接受的股本回報率、投資回報率，我認為這是關鍵因素。

In the meantime, obviously, between the securities because their yields and so on. And in the marketplace, we will make the adjustment from time to time. But by and large, that's only maybe less than 10% of balance sheet. So it's not as critical as managing the loan portfolio.

同時，顯然，證券之間也存在差異，因為它們的收益率等等。在市場方面，我們會不時做出調整。但總的來說，這可能只佔資產負債表的不到 10%。所以它不像管理貸款組合那麼重要。

Yes. Do you think maybe, I guess, thinking a bit longer term or as we look over to next year or even into 2027, I know it's somewhat of a hard question to answer, but has any of these moves to take off some of that rate sensitivity maybe limited some of the upside in the margin? Or where do you think -- I mean, like, again, you -- it's not hard to see you all getting north of four.

是的。我覺得，從更長遠的角度來看，或是展望明年甚至2027年，我知道這個問題很難回答，但這些降低利率敏感度的措施是否限制了利潤率的上漲空間？或者你覺得──我的意思是，再說一遍，你──不難看出你們的成績都會超過四。

But I mean it wasn't that long ago, you guys were in the mid- to high four's. Is that still an achievable target given your current composition of the rate sensitivity of the balance sheet? Or has that kind of ceiling maybe been brought down as a result of this?

但我的意思是，不久之前，你們的成績還在4分中後期。鑑於您目前資產負債表利率敏感度的組成，這仍然是一個可實現的目標嗎？或者說，這種上限是否因此而被打破了？

Actually, if you really look at analyzing our sensitivity level, we are pretty reasonably within balance in the situation. In the short term, we're a little bit very sensitive -- in the intermediate term, because of deposit portfolio of large time certificate deposit portfolio, in the long term, we're really rate liability sensitive assets. So we -- that's why we're in a situation, we're able to improve the earnings in the fourth quarter and third and fourth quarter because it's a sidetrack?

實際上，如果你仔細分析我們的敏感度，你會發現我們目前的情況相當平衡。短期內，我們對利率非常敏感；中期來看，由於存款組合中包含大量定期存單；長期來看，我們對利率非常敏感，負債資產也對利率非常敏感。所以——這就是為什麼我們現在能夠改善第四季和第三、第四季的獲利，因為這是一個轉捩點？

And going forward, of course, there's no set formula. I have not been a -- I don't think anybody that can talk by the banking book, how to do these kind of things other than to stay alert and try to do the best you can. Okay. Especially with a very simple gelatin, okay? We just try to be conscientious try to be alert. Okay.

當然，未來並沒有固定的模式。我不是——我認為任何一個只懂銀行帳簿的人，除了保持警惕並盡力做到最好之外，我都不知道該如何處理這類事情。好的。尤其是用非常簡單的明膠，好嗎？我們只是努力做到認真負責，保持警覺。好的。

This concludes our question-and-answer session. I would like to turn the conference back over to Li Yu for any closing remarks.

我們的問答環節到此結束。我謹將會議交還給李宇，請他作總結發言。

Thank you so much for your interest in Preferred Bank, okay. We're very happy that we were able to report a very good quarter of results and we hope it will continue for our shareholders. Thank you.

非常感謝您對Preferred Bank的關注。我們非常高興能夠公佈一個非常好的季度業績，並希望這一勢頭能夠繼續保持，為我們的股東帶來收益。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝各位參加今天的報告會。您現在可以斷開連線。