Sandy Spring Bancorp Inc (SASR) 2024 Q2 法說會逐字稿

Hello and welcome to the Sandy Spring Bancorp Incorporated Earnings Conference Call and Webcast for the Second Quarter. My name is Elliot, and I'll be coordinating the call today. (Operator Instructions)

大家好，歡迎參加桑迪斯普林銀行股份有限公司第二季財報電話會議和網路直播。我叫艾利歐特，今天我將負責協調這通通話。（操作說明）

I would now like to hand over to Aaron Kaslow, General Counsel and Chief Administrative Officer. Please go ahead.

現在我將把發言權交給總法律顧問兼首席行政官亞倫·卡斯洛。請繼續。

Thank you, Elliot. Good afternoon, everyone, and welcome to Sandy Spring Bancorp's second quarter earnings conference call. Today, I am joined by Dan Schrider, Chair, President, and CEO; and Charlie Cullum, Chief Financial Officer.

謝謝你，艾利奧特。各位下午好，歡迎參加桑迪斯普林銀行集團第二季財報電話會議。今天，與我一同出席的有董事長、總裁兼執行長丹‧施賴德，以及財務長查理‧卡勒姆。

I'd like to remind listeners that remarks made during today's call may include forward-looking statements, which are subject to risks and uncertainties. These forward-looking statements include statements of goals, intentions, earnings and other expectations, estimates of risks and future costs and benefits, assessments of expected credit losses, assessments of market risk and statements of the ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties because they are based upon or affected by management's estimates and projections of future interest rates, market behavior, other economic conditions, future laws and regulations and a variety of other matters, which by their very nature, are subject to significant uncertainties. Because of these uncertainties, Sandy Spring Bancorp's actual future results may differ materially from those indicated. In addition, the company's past results of operations do not necessarily indicate its future results.

我想提醒各位聽眾，今天電話會議期間發表的言論可能包含前瞻性陳述，這些陳述有風險和不確定性。這些前瞻性聲明包括目標、意圖、收益和其他預期聲明、風險和未來成本及收益的估計、預期信用損失的評估、市場風險的評估以及實現財務和其他目標的能力聲明。這些前瞻性陳述存在重大不確定性，因為它們基於或受管理層對未來利率、市場行為、其他經濟狀況、未來法律法規以及其他各種事項的估計和預測的影響，而這些事項本身就存在重大不確定性。由於這些不確定因素，Sandy Spring Bancorp 的實際未來表現可能與所示業績有重大差異。此外，公司過去的經營業績並不一定能預示其未來的業績。

I'll now turn the call over to Dan.

現在我將把電話交給丹。

Thank you, Aaron, and thanks, everyone, for joining us today. I'll begin today's call by discussing some of our results for the quarter and then turn it over to Charlie, and I will follow with some commentary and subsequently open up the call for your questions. In the second quarter, we successfully grew core deposits and C&I loans, while also improving the net interest margin. In addition, we prudently managed expenses. We reported net income of $22.8 million or $0.51 per diluted common share for the second quarter of 2024 compared to $20.4 million or $0.45 per diluted common share for the first quarter and $24.7 million or $0.55 per diluted common share for the second quarter of last year.

謝謝亞倫，也謝謝各位今天蒞臨。今天，我將首先討論我們本季的一些業績，然後把發言權交給查理，之後我會做一些評論，並隨後開放提問環節。第二季度，我們成功實現了核心存款和工商業貸款的成長，同時淨利差也得到了改善。此外，我們也謹慎地控制了開支。我們公佈 2024 年第二季淨利為 2,280 萬美元，即每股攤薄收益 0.51 美元，而第一季為 2,040 萬美元，即每股攤薄收益 0.45 美元，去年第二季為 2,470 萬美元，即每股攤薄收益 0.55 美元。

Core earnings for the current quarter were $24.4 million or $0.54 per diluted common share compared to $21.9 million or $0.49 per diluted common share for the previous quarter and $27.1 million or $0.60 per diluted common share for the second quarter of last year. The increase in net income and core earnings compared to the previous quarter was driven by higher non-interest income and net interest income, which improved the net interest margin for the first time in several quarters. Additionally, second quarter results benefited from a lower provision for credit losses, which declined to $1 million from $2.4 million for the first quarter of this year.

本季核心收益為 2,440 萬美元，即每股攤薄收益 0.54 美元，而上一季為 2,190 萬美元，即每股攤薄收益 0.49 美元，去年第二季為 2,710 萬美元，即每股攤薄收益 0.60 美元。與上一季相比，淨利和核心收益的成長主要得益於非利息收入和淨利息收入的增加，這使得淨利差在幾個季度以來首次得到改善。此外，第二季業績也受惠於信貸損失準備金的減少，從今年第一季的 240 萬美元降至 100 萬美元。

The provision for credit losses directly attributable to funded loan growth or the funded loan portfolio, I should say, was $3 million for the second quarter of 2024 compared to $3.3 million for the linked quarter. The second quarter provision mainly reflects higher individual reserves on collateral-dependent loans, overall growth of the loan portfolio and lower qualitative adjustments due to the reduction in commercial real estate loans. The reserve for unfunded commitments declined by $1.9 million, a result of higher utilization rates on lines of credit during the quarter. Turning our attention to the balance sheet; total assets increased to $14 billion at the end of the second quarter compared to $13.9 billion at March 31, 2024.

2024 年第二季度，直接歸因於已發放貸款成長或已發放貸款組合的信貸損失準備金為 300 萬美元，而上一季為 330 萬美元。第二季撥備主要反映了抵押品相關貸款的個別準備金增加、貸款組合的整體成長以及由於商業房地產貸款減少而導致的定性調整減少。由於本季信貸額度使用率較高，未撥付承諾的準備金減少了 190 萬美元。接下來我們來看資產負債表；截至第二季末，總資產增至 140 億美元，截至 2024 年 3 月 31 日為 139 億美元。

As of June 30, total loans increased by $119.6 million or 1% to $11.5 billion compared to the previous quarter. Commercial business loans and lines grew $91.9 million or 6%. For the remainder of 2024, we expect funded loan production to continue to be in the range of $200 million to $250 million per quarter. And based on pipelines, we expect commercial loan growth of 1% to 2% per quarter. Consistent with our strategy, the commercial investor real estate segment declined by $64.5 million or 1% as compared to the first quarter of this year.

截至6月30日，貸款總額較上一季增加1.196億美元，增幅1%，達115億美元。商業貸款和信貸額度增加了 9,190 萬美元，增幅為 6%。預計 2024 年剩餘時間內，已發放貸款的金額將繼續維持在每季 2 億至 2.5 億美元之間。根據目前的貸款發放情況，我們預計商業貸款每季將成長 1% 至 2%。與我們的策略一致，商業投資者房地產板塊與今年第一季相比下降了 6,450 萬美元，降幅為 1%。

Total mortgage and consumer loan portfolios remained relatively unchanged in the second quarter compared to the first quarter of 2020. As you refer to the supplemental information we also released this morning, pages 7 through 9 provide more detail on the composition of our loan portfolios, data related to specific property types in our commercial real estate portfolio and specific commercial real estate composition in the urban markets of D.C. and Baltimore. Slides 16 through 20 of the supplemental deck provide a detailed commercial real estate overview for our retail, multifamily, office, flex, warehouse, and hotel portfolios.

與 2020 年第一季相比，第二季抵押貸款和消費貸款總額基本上保持不變。正如您所提到的，我們今天早上還發布了補充信息，第 7 至 9 頁提供了有關我們貸款組合構成、商業房地產組合中特定物業類型相關數據以及華盛頓特區和巴爾的摩城市市場特定商業房地產構成等方面的更多詳細信息。補充簡報的第 16 至 20 頁詳細介紹了我們的零售、多戶住宅、辦公室、彈性辦公、倉庫和飯店投資組合的商業房地產概況。

And as you review the data on these slides, you will notice an increase in criticized loans in each portfolio. In response to regulatory guidance issued last year and due to our continued focus on portfolio management, we reassessed commercial credits where cash flow fell short of covenants despite having a satisfactory payment performance. And based on this review, we recategorized $144 million to special mention and $19.5 million to substandard. There are minimal delinquencies within these credits as repayment has continued to be supported by strong sponsors or guarantors and the reclassification had an impact of $900,000 on the allowance for loan losses, but no loans require specific reserves.

當你查看這些投影片上的數據時，你會注意到每個投資組合中受批評的貸款數量都在增加。為回應去年發布的監管指導意見，並由於我們持續關注投資組合管理，我們重新評估了現金流低於契約要求的商業信貸，儘管其支付表現令人滿意。根據此次審查，我們將 1.44 億美元重新歸類為特別提及，將 1,950 萬美元重新歸類為不合格。由於償還一直得到強有力的發起人或擔保人的支持，這些貸款的違約情況極少，而且重新分類對貸款損失準備金產生了 90 萬美元的影響，但沒有貸款需要特定準備金。

As we also noted in these slides, we are lending in our primary market that we know well. We have five accruing delinquent credits among the five portfolios referenced in the supplemental deck and only a handful of nonperforming loans that have been subject to early identification and appropriately reserved. We continue to focus on our portfolio management, including staying close to our clients, assessing credits that are subject to repricing throughout the year, closely monitoring other portfolios and evaluating the need for specific reserves should credit show further deterioration.

正如我們在這些幻燈片中也提到的，我們正在我們非常熟悉的主要市場進行貸款業務。在補充文件中提到的五個投資組合中，我們有五筆正在累積的逾期貸款，只有少數不良貸款已被及早發現並進行了適當的撥備。我們將繼續專注於投資組合管理，包括與客戶保持密切聯繫，評估全年可能重新定價的信貸，密切監控其他投資組合，並評估如果信貸狀況進一步惡化是否需要特定準備金。

Now I'll turn it to Charlie, who will walk through other aspects of our financial results.

現在我將把麥克風交給查理，他將介紹我們財務表現的其他方面。

Thanks, Dan. It's good to be with you today. Moving to deposits; we continue to grow core funding and reduced broker time deposits during the second quarter of 2024. Total deposits increased $113 million or 1% to $11.3 billion at June 30 compared to $11.2 billion at the end of the first quarter. Non-interest-bearing deposits increased $113.5 million or 4% compared to the first quarter, driven by commercial and small business checking accounts. Interest-bearing deposits were relatively unchanged. Money Market grew $167.6 million or 6% and savings accounts grew by $99 million or 6% during the second quarter.

謝謝你，丹。今天能和你在一起真好。轉向存款方面；我們將繼續增加核心資金，並在 2024 年第二季減少經紀商定期存款。截至 6 月 30 日，存款總額增加 1.13 億美元，增幅 1%，達到 113 億美元，而第一季末為 112 億美元。與第一季相比，不計息存款增加了 1.135 億美元，增幅為 4%，主要得益於商業和小型企業支票帳戶的成長。計息存款基本不變。第二季度，貨幣市場成長了 1.676 億美元，增幅為 6%；儲蓄帳戶成長了 9,900 萬美元，增幅為 6%。

These increases were offset by the $172.5 million or 7% reduction in time deposits, of which $154.7 million was a reduction in broker time deposits. Excluding broker deposits, core deposits increased by $271.2 million or 3% compared to the prior quarter. Core deposits represented 94% of total deposits at the end of the quarter as compared to 93% in the prior quarter. The deposit growth during the quarter resulted in a loan-to-deposit ratio of 101% at June 30, 2024. Total uninsured deposits at the end of the quarter were approximately 36% of total deposits. Total borrowings were relatively unchanged at June 30 as compared to the previous quarter.

這些增長被定期存款減少 1.725 億美元或 7% 所抵消，其中經紀商定期存款減少了 1.547 億美元。剔除經紀商存款後，核心存款較上一季增加 2.712 億美元，增幅為 3%。本季末核心存款佔總存款的 94%，而上一季為 93%。本季存款成長使得截至 2024 年 6 月 30 日的存貸比達到 101%。截至季末，未投保存款總額約佔存款總額的36%。截至6月30日，總借款額與上一季相比基本不變。

Contingent liquidity, which consists of available FHLB borrowings, Fed funds, funds through the Federal Reserve Bank's discount window as well as excess cash and unpledged investment securities totaled $6.3 billion or 154% of uninsured deposits. Non-interest income for the second quarter of 2024 increased by 7% or $1.2 million compared to the linked quarter and grew by 14% or $2.4 million compared to the prior year quarter. The main drivers of the linked quarter increase in non-interest income were twofold, a $700,000 increase in BOLI income due to the receipt of debt proceeds and a $500,000 increase in wealth management income.

緊急流動性包括可用的聯邦住房貸款銀行借款、聯邦基金、透過聯準會貼現窗口獲得的資金以及超額現金和未抵押投資證券，總計 63 億美元，佔未投保存款的 154%。2024 年第二季非利息收入較上一季成長 7% 或 120 萬美元，較上年同期成長 14% 或 240 萬美元。上季非利息收入成長的主要驅動因素有兩個：一是由於收到債務收益，BOLI 收入增加了 70 萬美元；二是財富管理收入增加了 50 萬美元。

This increase was due to $50.2 million or 1% growth in assets under management during the quarter. Through June, wealth management income accounts for approximately 54% of the bank's total non-interest income. Income from mortgage banking activities increased 18% on a linked-quarter basis. Our expectations for mortgage banking revenue for the third quarter of 2024 are in the range of $1 million to $1.5 million. The net interest margin was 2.46% for the second quarter of 2024 compared to 2.41% for the first quarter of 2024.

這一增長是由於本季度管理資產規模增長了 5,020 萬美元，增幅為 1%。截至6月份，財富管理收入約佔該銀行非利息收入總額的54%。抵押貸款業務收入較上季成長18%。我們預計 2024 年第三季抵押貸款銀行業務收入將在 100 萬美元至 150 萬美元之間。2024 年第二季淨利差為 2.46%，而 2024 年第一季淨利差為 2.41%。

Delinquent improvement in the margin was a result of a 2 basis point increase in the yield on interest-earning assets, coupled with a 3 basis point decline in the rate paid on interest-bearing liabilities. We will continue to employ a disciplined approach to pricing in order to improve the net interest margins. Absent action by the Fed, we believe that our margin will be expanding throughout the remainder of 2024 by 2 basis points to 4 basis points per quarter. We anticipate that the Federal Reserve will cut interest rates later in the year with four rate cuts next year, which should accelerate our margin expansion during 2025 towards a low 3% margin by the end of 2025.

利潤率的改善是由於生息資產收益率上升了 2 個基點，同時計息負債的支付利率下降了 3 個基點。我們將繼續採取嚴謹的定價策略，以提高淨利差。如果聯準會不採取行動，我們認為在 2024 年剩餘時間內，我們的利潤率將以每季 2 至 4 個基點的速度擴大。我們預計聯準會將在今年稍晚降息，明年將降息四次，這將加速我們在 2025 年的利潤率擴張，到 2025 年底達到 3% 的低利潤率。

Non-interest expenses for the current quarter were flat compared to the linked quarter at $68.1 million. You may see a slight increase in expenses in the second half of the year, and we look to manage in the range of $68 million to $70 million per quarter. This anticipated increase in expenses is in part due to our recent investments in building our SBA team, which Dan communicated on the call last quarter. We're ahead of schedule with both hiring talent for this new program and building out the necessary infrastructure. While this will contribute to slightly higher expenses in the latter half of the year, we anticipate that the program will contribute to our non-interest income by year-end.

本季非利息支出與上季持平，為 6,810 萬美元。下半年支出可能會略有增加，我們預計每季支出將控制在 6,800 萬美元至 7,000 萬美元之間。預計支出增加的部分原因是由於我們最近對組建 SBA 團隊進行了投資，丹在上個季度的電話會議上已經提到了這一點。我們在招募新專案所需人才和建設必要基礎設施方面都提前完成了計劃。雖然這將導致下半年支出略有增加，但我們預計該計劃將在年底前為我們的非利息收入做出貢獻。

Shifting to credit quality; the level of nonperforming loans to total loans at the end of the second quarter of 2024 was 81 basis points compared to 74 basis points at March 30, 2024. This linked quarter increase was due to a few loans within the commercial owner-occupied real estate segment that were placed on nonaccrual status during the current period. All of these loans are well-secured. Nonperforming loans totaled $93 million at the end of the quarter compared to $84.4 million at March 31, 2024. Total net charge-offs for the second quarter were $200,000 compared to $1.1 million for the first quarter of 2024.

轉向信貸品質；截至 2024 年第二季末，不良貸款佔貸款總額的比例為 81 個基點，而截至 2024 年 3 月 30 日為 74 個基點。本季環比成長是由於商業自用房地產領域的部分貸款在本期被置於非應計狀態所致。這些貸款都有完善的擔保。截至本季末，不良貸款總額為 9,300 萬美元，而截至 2024 年 3 月 31 日為 8,440 萬美元。第二季淨沖銷總額為 20 萬美元，而 2024 年第一季淨沖銷總額為 110 萬美元。

At June 30, 2024, the allowance for credit losses was $125.9 million or 1.1% of outstanding loans and 135% of nonperforming loans compared to $123.1 million or 1.08% of outstanding loans and 146% of nonperforming loans at the end of the previous quarter. The increasing allowance for the second quarter of 2024 compared to the previous quarter reflects higher individual reserves on collateral-dependent nonaccrual loans and overall growth of the loan portfolio during the quarter. These are somewhat offset by lower qualitative adjustments that have resulted from reduced levels of commercial real estate loans.

截至 2024 年 6 月 30 日，信貸損失準備金為 1.259 億美元，佔未償貸款的 1.1%，佔不良貸款的 135%；而上一季末，信貸損失準備金為 1.231 億美元，佔未償貸款的 1.08%，佔不良貸款的 146%。2024 年第二季撥備較上一季增加，反映出抵押品依賴型非應計貸款的個別準備金增加，以及該季度貸款組合的整體成長。這些影響在一定程度上被商業房地產貸款水準下降所帶來的較低品質調整所抵消。

Our CRE 2 capital ratio declined to 346% at quarter end from 348% as of March 31. At June 30, 2024, the company had a total risk-based capital ratio of 15.49%, a common equity Tier 1 risk-based capital ratio of 11.28%, a Tier 1 risk-based capital ratio of 11.28% and a Tier 1 leverage ratio of 9.7%. These ratios remain well in excess of the minimum regulatory requirements. The improvements in our capital ratios over the previous quarter were due to a decline in our risk-weighted assets during the quarter. This was a result of a management review of our unfunded consumer lines of credit and the position is consistent with regulatory guidelines.

截至季末，我們的 CRE 2 資本比率從 3 月 31 日的 348% 下降至 346%。截至 2024 年 6 月 30 日，該公司總風險資本比率為 15.49%，普通股一級風險資本比率為 11.28%，一級風險資本比率為 11.28%，一級槓桿比率為 9.7%。這些比率仍然遠高於最低監管要求。本季資本比率較上一季有所改善，是由於本季風險加權資產下降所致。這是管理階層對我們未註資的消費者信貸額度進行審查的結果，該立場符合監管準則。

With that, I will turn it back to Dan to talk about some things we see on the horizon.

接下來，我將把麥克風交還給丹，讓他談談我們預見的一些未來趨勢。

Thanks, Charlie. I'd like to wrap up our prepared comments by reiterating our key priorities. We remain focused on improving our profitability, continuing to bolster core funding, managing expenses and enhancing credit portfolio management while also reducing our commercial real estate exposure. Teams across the organization are challenging the status quo. We're focusing on innovation and performance to better serve our clients.

謝謝你，查理。我想在總結我們準備好的發言時，重申我們的主要優先事項。我們將繼續專注於提高獲利能力，繼續加強核心資金，控制支出，加強信貸組合管理，同時減少我們在商業房地產方面的風險敞口。公司各團隊都在挑戰現狀。我們專注於創新和提升業績，以便更好地服務客戶。

The Greater Washington, D.C. metro area is a vibrant market characterized by positive growth trends and ample opportunity. So we continue to expand both on our capabilities and our offerings to increase market share. And our new SBA lending program, we mentioned earlier is just one example of that. I'm pleased with the company's stability and positive momentum, and I look forward to building on those accomplishments.

大華盛頓特區都會區是一個充滿活力的市場，其特點是成長趨勢良好，機會眾多。因此，我們將持續拓展自身能力和產品範圍，以提高市場佔有率。我們之前提到的新的 SBA 貸款計劃就是其中的一個例子。我對公司的穩定性和積極發展勢頭感到滿意，並期待在此基礎上再創佳績。

So at this time, Elliot, we'll turn it over to you so we can take your questions.

那現在就交給你了，艾利歐特，我們來回答你的問題。

(Operator Instructions) Catherine Mealor, Keefe, Bruyette & Woods.

（操作說明）Catherine Mealor，Keefe，Bruyette & Woods。

The commentary on the margin for the back half of the year, I thought was helpful. It's good to see some expansion in that. Can you just talk to us a little bit about some of your assumptions within that, particularly on the funding side? Do you feel like you're near a peak in deposit costs and actually could see a decline in deposit costs before we get to rate cuts or how are you thinking about how deposit costs will trend?

我認為下半年的邊注很有幫助。很高興看到這方面有所發展。您能否和我們談談您在其中的一些假設，特別是關於資金方面的假設？您是否覺得存款成本已接近峰值，並且在降息之前存款成本可能會下降？或者您如何看待存款成本的趨勢？

Hi, Catherine. It's Charlie. So we really have come close to a peak and how are you -- we've certainly gotten close to a peak in deposit costs. Our deposit cost for the month of June were $3.46 compared to -- sorry, wrong number, our deposit cost for the month of June were $3.56 compared to $3.54 in the quarter. So they were up a little bit. But overall, earning asset yields continue to expand.

你好，凱瑟琳。是查理。所以，我們確實已經接近高峰了，你們怎麼樣？ ——我們確實已經接近存款成本的高峰了。6 月我們的存款成本為 3.46 美元，而本季為 3.54 美元。 ——抱歉，數字錯了，6 月我們的存款成本為 3.56 美元，而本季為 3.54 美元。所以他們稍微領先了一點。但總體而言，獲利資產收益率持續成長。

So our projection would be that they come close to leveling off, we may see a basis point or 2 basis point increase in total deposit costs here over the next couple of quarters, at least until the Fed begins to cut interest rates, but we should see some corresponding decreases in our wholesale funding through advances and other Fed funds purchased which should offset some of those costs. And that's really where we're getting that improvement in margin from. So a few basis points improvement in the overall earning asset yields and pretty stable on the total cost of interest-bearing liabilities getting us to a couple of basis points to a few basis points of margin expansion.

因此，我們預測它們將接近穩定，未來幾季總存款成本可能會上升一到兩個基點，至少在聯準會開始降息之前是這樣，但我們應該會看到透過貸款和其他聯邦基金購買的批發融資出現一些相應的下降，這應該可以抵消部分成本。而這正是我們利潤率提升的真正原因。因此，整體獲利資產收益率提高了幾個基點，而計息負債的總成本相當穩定，這使得利潤率提高了幾個基點。

Okay, great. And then can you remind us and quantify the fixed rate repricing opportunity we've got in the back half of the year, maybe in '25 as well?

好的，太好了。那麼，您能否提醒我們並量化我們在今年下半年，或許還有 2025 年的固定利率重新定價機會？

Yeah. So if we're looking at total commercial loans, we've got the next two quarters, the third quarter of 2024 and the fourth quarter have right around $500 million in total each quarter of repricing. And those rates are repricing from the mid- to upper 6s. So you're not going to see significant improvement in loan yields as a result of the repricing in the second half of the year. But then as we head into 2025, the rate on repricing falls into the mid-6s and then by early 2026, the repricing rate falls into the upper 5s to low 6s. So we'll see a gradual improvement over that period of time in loan yields as those loans reprice.

是的。因此，如果我們看的是商業貸款總額，那麼接下來的兩個季度，即 2024 年第三季和第四季度，每季的重新定價總額約為 5 億美元。這些利率正在從6%中段到6%高段重新定價。因此，下半年重新定價不會為貸款收益率帶來顯著改善。但到了 2025 年，重新定價率降至 6 倍中段，到 2026 年初，重新定價率降至 5 倍以上至 6 倍低段。因此，隨著貸款重新定價，我們將看到貸款收益率在這段時間內逐步改善。

Okay, great. And if I could just ask one more on credit. You talked about the credits that you moved to special mention and substandard. Is part of the assumption in why there's not additional reserve needed or there's a low risk of loss. Is the rate outlook a piece of that? And if we were in a higher for longer rate scenario, do you believe there would potentially be more stress in these projects? Just some commentary on what gives you comfort that there's just not a lot of lost content in those credits.

好的，太好了。如果可以的話，我希望能再賒帳買一份。你談到了你將哪些學分降級為特別提及和不合格。這是認為無需額外儲備金或損失風險較低的部分原因。利率前景是否也與此有關？如果利率長期維持在較高水平，您認為這些項目是否會面臨更大的壓力？只是想說為什麼你會感到欣慰，因為片尾字幕裡並沒有失去太多內容。

Yes, Catherine, this is Dan. I wouldn't say that the rate outlook was a catalyst for those moves. I think it was more of -- what we're seeing in the -- here and now, and it's not -- there isn't one aspect of those credits that would drive those decisions. In some cases, it might be a project that we had come out of the ground recently and we're waiting for it to stabilize and the sponsors and guarantors are covering it or some short-term lease turnover that created a fall below covenant level.

是的，凱瑟琳，這是丹。我不會說利率前景是這些舉措的催化劑。我認為更多的是——我們現在所看到的——而不是——這些信貸政策的任何一個方面都會直接影響這些決定。在某些情況下，可能是我們最近啟動的一個項目，我們正在等待它穩定下來，發起人和擔保人正在為其提供資金，或者一些短期租賃的變更導致其低於契約水平。

I do think if rates stayed higher, longer on some of the projects that we have in our construction portfolio that will come on the market here in the next quarters, few quarters or so. That could have an impact on those because those are generally floating rate assets that could certainly use the relief of some Fed cuts. But that was not a driver. I think the overall assessment of those loans is recognizing that they're below covenant.

我認為，如果利率持續走高，我們建築項目組合中的一些項目將在未來幾季或幾季內進入市場，那麼利率走高的時間可能會更長。這可能會對這些資產產生影響，因為這些資產通常是浮動利率資產，肯定需要聯準會降息來緩解其風險。但這並非驅動因素。我認為對這些貸款的總體評估是認識到它們低於契約要求。

It's in line with the Fed guidance that they laid out about a year ago in terms of how we should be looking at those and then assessing the overall project, underlying collateral if it's a collateral-dependent loan. And that's causing us to not be concerned about where we stand from a reserve standpoint today. But we'll continue to stay close to it. If some things change, then our customary portfolio management practices would have us do valuations and appraisals and the like. And we're not seeing a number of credits going toward that direction.

這與聯準會大約一年前製定的指導方針一致，即我們應該如何看待這些情況，然後評估整個項目，以及如果是抵押品依賴型貸款，則評估相關的抵押品。因此，我們並不擔心我們目前的儲備狀況。但我們會繼續密切關注它。如果某些情況發生變化，那麼按照我們慣常的投資組合管理做法，我們會進行估值和評估等工作。但我們並沒有看到太多資金流向這個方向。

Great. And did you have to get updated appraisals on the credits when you move to them?

偉大的。搬家時是否需要對房屋貸款進行更新評估？

No, we do not, no. We'll selectively do -- (multiple speakers). Yeah.

不，我們沒有。我們將有選擇地進行——（多位發言者）是的。

Got it. Okay. Okay. That makes sense. Okay, great. That's all I got. Thank you very much.

知道了。好的。好的。這很有道理。好的，太好了。我掌握的就這些。非常感謝。

Russell Gunther, Stephens.

Russell Gunther，史蒂芬斯。

Just wanted to follow up on comments you made with regard to the RWA optimization in the quarter. Could you guys provide us with the size of the loan pool that, that applied to and then whether or not there's opportunity for similar actions going forward?

我想就您之前就本季度 RWA 優化所做的評論做個後續說明。你們能否提供一下此次貸款規模的信息，以及未來是否還有機會採取類似的行動？

Hi Russ, this is Charlie. We started a project during the quarter to look at risk-weighted assets and how we're classifying our various asset classes within that risk-weighted asset assignments. And so far, the one item we changed during this quarter was related to consumer loans, specifically home equity lines of credit, where we had them classified as conditionally cancelable, so that they carried -- the unfunded commitment portion of those credits carried a 50% risk weighting. However, FDIC guidelines allow you to classify them as unconditionally cancelable as long as they are cancelable up to federal law, which is Reg Z.

嗨，Russ，我是Charlie。本季度我們啟動了一個項目，研究風險加權資產以及我們如何在風險加權資產分配中對各種資產類別進行分類。到目前為止，本季度我們唯一改變的項目與消費貸款有關，特別是房屋淨值信貸額度，我們將其歸類為有條件可取消的貸款，因此這些信貸的未註資承諾部分具有 50% 的風險權重。但是，只要符合聯邦法律（即 Reg Z）的規定，FDIC 指南允許您將它們歸類為無條件可取消的。

We did an internal legal review, worked with our auditors and determined that our equity line of credit population should be classified as unconditionally cancelable and carry a 0% risk weighting, at least for the majority of those credits. That pulled a little over $700 million. So it was about a $360 million reduction in risk-weighted assets during the quarter. We'll continue to work through the project to look at a variety of other risk-weighted asset classes to determine if any other changes are needed with those changes taking effect sometime during the third quarter.

我們進行了內部法律審查，與審計師合作，並確定我們的股權信貸額度應歸類為無條件可取消，且風險權重為 0%，至少對於其中大部分信貸而言是如此。那筆收入略高於7億美元。因此，該季度風險加權資產減少了約 3.6 億美元。我們將繼續推進該項目，研究各種其他風險加權資產類別，以確定是否需要進行其他更改，這些更改將於第三季度某個時候生效。

Okay. That's really helpful. And then I wanted to circle back to Catherine's question earlier in terms of the fixed repricing you guys gave a lot of helpful color in terms of the rate in '25 and '26. I'm wondering if we could follow up in terms of the amount of the fixed repricing opportunity. Is it similar to the $500 million a quarter in the back half of this year?

好的。這真的很有幫助。然後，我想回到凱瑟琳之前提出的問題，關於固定重新定價，你們對 2025 年和 2026 年的利率提供了很多有用的信息。我想了解一下固定價格調整機會的具體金額。這和今年下半年每季 5 億美元的水平類似嗎？

That's a good question. As we head into 2025, the amount of repricing is between $200 million and $300 million per quarter. So it certainly falls a bit. We've got a little bit of a bubble of repricing that will occur here in the next two quarters but then somewhere in the $200 million to $300 million per quarter range on the total commercial loan portfolio.

這是個好問題。展望 2025 年，每季重新定價的金額將在 2 億至 3 億美元之間。所以它確實有所下降。接下來的兩個季度，我們將迎來一小波重新定價的泡沫，但商業貸款組合的總規模每季將達到 2 億至 3 億美元。

Okay. And then next point for me, guys, is the -- (multiple speakers). Sorry, go ahead.

好的。接下來我要說的重點是…——（多位發言者）抱歉，請繼續。

I was just going to say that is specifically related to the fixed rate. There will be additional repricing related to floating and adjustable credits.

我正想說，這專門與固定利率有關。浮動和可變信貸將進行額外的重新定價。

The last one for me is on the fee outlook, which I think for the year, you've got it high single digits. You mentioned the mortgage outlook for 3Q. Anything else that you would expect to step down? Otherwise, it looks to me like potentially could be closer to low double digits, maybe being conservative or maybe something I'm missing. Would just appreciate any thoughts.

對我來說，最後一個問題是費用前景，我認為今年的費用前景應該是個位數高點。您提到了第三季的抵押貸款前景。還有什麼其他職位需要卸任嗎？否則，在我看來，實際數字可能接近兩位數的低位，也許我估計得比較保守，或者我忽略了什麼。非常感謝大家的任何想法。

No, I mean I think double digits are certainly possible. Certainly on the wealth side, the market, it's highly market-dependent. Here recently, the market is performing really well. So those areas will perform well as well. Obviously, the BOLI income we received during the quarter was onetime income with no anticipation that, that could recur. And then we do have some expectation that we'll see some of those SBA gains start to occur during the fourth quarter. We're just not confident if they're going to be a fourth quarter event or a first quarter event at this time. So I think your comments around high single digits to low double digit improvement somewhere in that range is likely.

不，我的意思是，我認為兩位數完全有可能。當然，就財富而言，也就是市場方面，它高度依賴市場。最近，這裡的市場表現非常好。因此，這些領域也會表現良好。顯然，我們本季收到的 BOLI 收入是一次性收入，我們並不預期它會再次發生。我們預計，在第四季度將會看到一些 SBA 貸款的增加。目前我們還無法確定它們會是第四季的活動還是第一季的活動。所以我認為你關於提升幅度在個位數高點到兩位數低位之間的評論是有可能的。

Okay. I appreciate your thoughts, guys. Thanks for taking my questions.

好的。感謝各位的意見。謝謝您回答我的問題。

(Operator Instructions) Manuel Navas, D.A. Davidson.

（操作說明）Manuel Navas，D.A. Davidson。

Could you update on some of the deposit initiatives that are driving a little bit better guidance, strong growth this quarter and last? Where are you seeing the most success?

能否介紹一下推動業績指引改善、實現本季和上季強勁成長的一些存款措施？你覺得哪些方面最成功？

Hi, Manuel. This is Dan. There's not one specific area. We're seeing success really across the board as our folks in our branch network are out driving deposit growth through their client relationships. We're having success with our digital marketing and digital fulfillment through our online platform. Commercial bankers are continuing to mind our client relationships there and driving new client deposits.

你好，曼努埃爾。這是丹。沒有特定的區域。我們看到各方面都取得了成功，我們分行的員工透過與客戶建立關係，積極推動存款成長。我們透過線上平台進行的數位行銷和數位交付業務取得了成功。商業銀行家們繼續維護與當地客戶的關係，並努力吸引新客戶存款。

And one thing we talked about last time we were together, I believe, was some initiatives we had in reaching into the new clients that we attracted through our high-yield savings account. And we developed some products for that segment hasn't hit the ground as well as we had expected. So we're tweaking the products as well as the promotion to get more success in turning those into full banking relationships. But there's not one initiative underway that's driving our success. I think it's really across the board. The teams are fully engaged on driving new relationships through both branches and through digital means.

我相信，我們上次見面時也談到了我們為拓展透過高收益儲蓄帳戶吸引來的新客戶而採取的一些舉措。我們為該領域開發的一些產品並沒有像我們預期的那樣取得成功。因此，我們正在調整產品和促銷策略，以期在將這些客戶轉化為完整的銀行客戶關係方面取得更大的成功。但目前沒有任何一項措施能真正推動我們的成功。我認為這是普遍現象。各團隊正全力以赴，透過分公司和數位化手段拓展新的合作關係。

And that's showing in better pipelines and better -- a little bit increased a positive outlook for the year?

這體現在更完善的管道建設和略微上調的年度樂觀預期上？

I think overall, yes. I think the one thing that came back to us a good bit in the second quarter was the commercial and small business DDAs. So there's some seasonality in that inter-quarter, but driving new relationships, both in the retail and small business space.

總的來說，我認為是的。我認為第二季我們再次關注到的一個問題是商業和小型企業發展援助計劃 (DDA)。因此，季度之間的波動存在著一定的季節性，但同時也推動了零售和小型企業領域的新關係發展。

And then can you talk about the mix of loan growth, that 1% to 2% growth, it's going to be primarily on the C&I side?

那麼，您能否談談貸款成長的組成，那1%到2%的成長，主要會來自工商業貸款方面嗎？

I would say yeah, the pipeline -- coming out of last quarter, just to give you a sense, first quarter pipeline was in the mid-$600 million range. This quarter, as we wrap up is in the low $800 million range. So we're seeing some pipeline build, and it is predominantly C&I and owner-occupied real estate, which is closely tied to the C&I relationships.

是的，就專案儲備而言——上個季度的情況來看，為了讓您有個概念，第一季的專案儲備在 6 億美元左右。本季末，營收預計在 8 億美元左右。所以我們看到一些項目正在建設中，而且主要是工商業和業主自住的房地產，這與工商業關係密切相關。

We will still see some growth by virtue of what we've already have on our books in the AD&C portfolio that we'll fund in res homebuilding construction as well as some other multifamily that we have in the AD&C book that will still continue to fund. But the pipeline of new opportunities is predominantly C&I and owner-occupied real estate.

由於我們在 AD&C 投資組合中已有的項目，我們將繼續為住宅建設提供資金，並繼續為 AD&C 投資組合中的其他一些多戶住宅項目提供資金，因此我們仍將看到一些增長。但新的機會主要集中在工商業和業主自住房地產領域。

Could you just speak to the pace and acceleration of pace of NIM improvement with rate cuts. I think you talked about it in your comments that you could get to 3% plus by the end of next year based on your rate assumption. So that builds in a little bit of an acceleration of NIM improvement. Is that still represented in those comments?

您能否談談降息後淨利差改善的速度和加速情況？我認為你在評論中提到過，根據你的利率假設，到明年年底利率可能會達到 3% 以上。這樣就能在某種程度上加速 NIM 的改進。這些評論中是否仍然體現了這一點？

Yes. So we do expect that once the Fed begins to cut interest rates, we'll see some improvement. We'll say we're a little more cautious about the first rate cut or so and whether pricing across the board in our marketplace is going to come down enough for us to be as aggressive on our deposit betas as we'd like to be early on. But we do expect once the Fed makes to the second, third cut, that those betas will be much higher than we've historically seen within our portfolios.

是的。因此，我們預計一旦聯準會開始降息，情況就會有所改善。我們會說，對於第一次降息，我們會更加謹慎，並考慮我們市場上的所有產品定價是否會下降到足以讓我們在早期階段像我們希望的那樣積極地降低存款利率。但我們預計，一旦聯準會進行第二次、第三次降息，這些投資組合的貝塔係數將遠高於我們歷史上所見的水平。

Quite a bit of the benefit that we expect to see from the Fed movements is related to changes in the shape of the yield curve. So that's one thing to be cautious with the overall yield curve comes down, so the long end comes down right with the short end, but the benefit won't be as great as what we're projecting to be a little bit more difficult for us to achieve that 3% by the end of 2025.

我們預期聯準會的舉措將帶來相當一部分好處，這與殖利率曲線形狀的變化有關。所以，要注意的一點是，整體殖利率曲線會下降，長期殖利率也會隨之下降，短期殖利率也會下降，但收益不會像我們預期的那麼大，到 2025 年底實現 3% 的目標對我們來說會更加困難。

But certainly, falling deposit costs and then the continued repricing of the loan portfolio as yields similar to where they are today or even slightly lower would allow our margin to expand at pretty close to twice the rate that it would without Fed cut. So you'd be looking somewhere in the maybe 5 basis point to 10 basis point range of quarterly improvement once we can start pulling those deposit costs down versus the 2 basis points to 4 basis points of quarterly improvement that we're projecting absent movement benefit.

但可以肯定的是，存款成本下降，貸款組合的收益率繼續重新定價，與目前的水平相似甚至略低，這將使我們的利潤率以接近聯準會不降息時兩倍的速度擴張。因此，一旦我們能夠開始降低存款成本，季度改善幅度可能在 5 個基點到 10 個基點之間，而如果沒有流動性收益，我們預計季度改善幅度為 2 個基點到 4 個基點。

That's really helpful. Thank you. I'll step back into the queue.

這真的很有幫助。謝謝。我重新排隊。

Ladies and gentlemen, we have no further questions, so this concludes our Q&A and today's conference call. We'd like to thank you for your participation. You may now disconnect your lines.

女士們、先生們，我們沒有其他問題了，所以問答環節和今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路了。