SB Financial Group Inc (SBFG) 2024 Q2 法說會逐字稿

Good morning, and welcome to the SB Financial second quarter 2024 conference call and webcast. I would like to inform you that this conference call is being recorded and that all participants are in a listen-only mode. We will begin with remarks by management and then open the conference up to the investment community for questions and answers.

早安，歡迎參加 SB Financial 2024 年第二季電話會議和網路廣播。我想通知您，本次電話會議正在錄音，所有參與者都處於只聽模式。我們將從管理層的演講開始，然後向投資界開放會議以供提問和回答。

I will now turn the conference over to Sarah Mekus with SB Financial. Please go ahead, Sarah.

我現在將會議交給 SB Financial 的 Sarah Mekus。請繼續，莎拉。

Thank you. Good morning, everyone. I'd like to remind you that this conference call is being broadcast live over the Internet and will be archived and available on our website at ir.yourstatebank.com. Joining me today are Mark Klein, Chairman, President and CEO; Tony Cosentino, Chief Financial Officer; and Steve Walz, Chief Lending Officer.

謝謝。大家早安。我想提醒您，本次電話會議將透過網路進行現場直播，並將存檔並可在我們的網站 ir.yourstatebank.com 上查看。今天與我一起出席的有董事長、總裁兼執行長 Mark Klein；東尼·科森蒂諾，財務長；和首席貸款官史蒂夫·沃爾茲（Steve Walz）。

Today's presentation may contain forward-looking information. Cautionary statements about this information, as well as reconciliations of non-GAAP financial measures are included in today's earnings release materials as well as our SEC filings. These materials are available on our website, and we encourage participants to refer to them for a complete discussion of risk factors and forward-looking statements. These statements speak only as of the date made and SB Financial undertakes no obligation to update them.

今天的演示可能包含前瞻性資訊。有關此資訊的警示性聲明以及非公認會計準則財務指標的調節表均包含在今天的收益發布資料以及我們向 SEC 提交的文件中。這些資料可在我們的網站上找到，我們鼓勵參與者參考這些資料，以對風險因素和前瞻性陳述進行完整的討論。這些聲明僅代表發布之日的情況，SB Financial 不承擔更新這些聲明的義務。

I will now turn the call over to Mr. Klein.

我現在將電話轉給克萊恩先生。

Thank you, Sarah, and good morning, everyone. Welcome to our second quarter 2024 conference call and webcast.

謝謝莎拉，大家早安。歡迎參加我們的 2024 年第二季電話會議和網路廣播。

Highlights for this quarter include net income of $3.1 million, up 1.2%. Diluted earnings per share increased to $0.47, a 6.8% increase from $0.44 that we delivered in the prior-year quarter. Net interest income totaled $9.7 million, a decrease of 1.7% from $9.8 million in the second quarter of the prior year.

本季的亮點包括淨利潤 310 萬美元，成長 1.2%。稀釋每股收益增至 0.47 美元，比去年同期的 0.44 美元成長 6.8%。淨利息收入總計 970 萬美元，比去年第二季的 980 萬美元下降 1.7%。

Total loans increased to $1.01 billion, up over $20 million or 2.1% from the prior-year quarter and higher compared to the linked quarter by nearly $14 million. Return on average assets increased to 0.93%, up 2 basis points, while return on average equity declined slightly to 10.16%, down 16 basis points.

貸款總額增至 10.1 億美元，比去年同期增加超過 2,000 萬美元，或 2.1%，比上一季增加近 1,400 萬美元。平均資產報酬率上升2個基點至0.93%，而平均權益報酬率小幅下降至10.16%，下降16個基點。

Tangible book value per share increased to $15.26, up $1.45 or 11% compared to the prior year, while adjusted tangible book value increased to $20.02. Our mortgage banking revenue increased by 18.8% to $1.8 million this quarter, demonstrating our strong operational performance compared to the same period last year. Mortgage originations for the trailing 12 months were $218 million, delivering a servicing portfolio now of $1.39 billion or an increase of approximately 2.7% from the prior year.

每股有形帳面價值增至 15.26 美元，較上年增長 1.45 美元，即 11%，調整後的有形帳面價值增至 20.02 美元。本季我們的抵押貸款銀行業務收入成長了 18.8%，達到 180 萬美元，證明了我們與去年同期相比強勁的營運表現。過去 12 個月的抵押貸款發放量為 2.18 億美元，目前提供的服務組合為 13.9 億美元，比上年增長約 2.7%。

Total interest expense amounted to $6 million, marking a slight decrease of 2% from the linked quarter. Operating expenses for the first six months were also down approximately 1% compared to the prior-year same period. And finally, asset quality metrics continued to improve.

利息支出總額為 600 萬美元，較上一季小幅下降 2%。前六個月的營運費用也比去年同期下降了約 1%。最後，資產品質指標持續改善。

Our strategic path forward remains hinged on our five key initiatives. First, revenue diversity. As I mentioned, our mortgage banking net revenue increased by 18.8% to nearly $2 million from the previous year, demonstrating our initiatives to balance net interest income with fee-based revenue amidst shifting market conditions.

我們前進的策略性道路仍然取決於我們的五項關鍵舉措。首先，收入多元化。正如我所提到的，我們的抵押貸款銀行淨收入比上一年增長了 18.8%，達到近 200 萬美元，這表明我們在不斷變化的市場條件下平衡淨利息收入和收費收入的舉措。

Organic growth for scale. We achieved a 5.6% annualized growth rate in our portfolio this quarter. We have a very strong pipeline in a number of markets with the Columbus team providing the bulk of the expected growth for the second half of 2024.

規模有機成長。本季我們的投資組合實現了 5.6% 的年化成長率。我們在許多市場擁有非常強大的管道，哥倫布團隊為 2024 年下半年的預期成長提供了大部分。

Deepening relationships more scope. Our deposit base grew by $44 million to $1.12 billion. The Ohio Homebuyer Plus program that I mentioned briefly last quarter has been quite successful. To date, we have opened nearly 400 accounts with balances in excess of $40 million at a weighted rate well below our margin and the market. We are especially encouraged that over 25% of those accounts are new relationships to our bank.

深化關係，擴大範圍。我們的存款基礎增加了 4,400 萬美元，達到 11.2 億美元。我上個季度簡要提到的俄亥俄州購屋者附加計劃非常成功。迄今為止，我們已開設近 400 個帳戶，餘額超過 4000 萬美元，加權利率遠低於我們的保證金和市場水平。尤其讓我們感到鼓舞的是，其中超過 25% 的帳戶是與我們銀行建立的新關係。

Excellence in operations. We have developed a stronger bench to ensure durable operational efficiencies. As a result, we've experienced a modest 3.2% increase in non-interest expenses compared to the prior-year quarter, delivering a net noninterest expense ratio of negative 1.87% with still a strategic goal of zero.

卓越的營運。我們開發了更強大的基礎設施，以確保持久的營運效率。因此，與去年同期相比，我們的非利息支出小幅增加了 3.2%，淨非利息支出率為負 1.87%，策略目標仍然為零。

Asset quality remains robust, evidenced by a low non-performing asset ratio of 0.39% of total assets. While this metric has had a minor shift, we remain confident of our diligent approach and continued commitment to prudent portfolio administration. In fact, our classified loans balances declined over 25% compared to the prior-year period.

資產品質維持穩健，不良資產率較低，佔總資產的0.39%。儘管這項指標發生了微小的變化，但我們仍然對我們的勤奮態度和對審慎投資組合管理的持續承諾充滿信心。事實上，我們的分類貸款餘額與去年同期相比下降了 25% 以上。

Now looking just a bit closer at revenue diversity. Our mortgage businesses originated over $75 million in volume, an increase of nearly 15% from the $65 million in the prior-year quarter. Mortgage sales reached over $55 million, representing 74% of total originations. While certainly below our capacity, we feel certainly better about the direction of this business line.

現在更仔細地研究一下收入的多樣性。我們的抵押貸款業務總額超過 7,500 萬美元，比去年同期的 6,500 萬美元成長了近 15%。抵押貸款銷售額超過 5,500 萬美元，佔貸款總額的 74%。雖然肯定低於我們的能力，但我們對這條業務線的方向肯定感覺更好。

Our Indianapolis office has delivered nearly 30% of our total volume thus far this year, and we're also seeing opportunities to add mortgage originators throughout our entire footprint. As we indicated last quarter, we have solidified the leadership of this business line, which should ensure that opportunities for expansion and product growth remain front of mind.

今年迄今為止，我們印第安納波利斯辦事處的交付量已佔總交付量的近 30%，而且我們還看到了在整個業務範圍內增加抵押貸款發起人的機會。正如我們上季度表示的那樣，我們已經鞏固了該業務線的領導地位，這應該確保擴張和產品成長的機會仍然放在首位。

We're also excited to confirm that we will be venturing into another dynamic Ohio market, Cincinnati. We have landed a seasoned market leader that will not only produce but will also work to build out a team of local professionals as well. With his background and market presence, we are confident that the residential real estate lending levels will rival those of our other growth markets of Columbus and Indianapolis in fairly short order.

我們也很高興地確認，我們將進軍另一個充滿活力的俄亥俄州市場——辛辛那提。我們已經找到了一位經驗豐富的市場領導者，他不僅會生產，還會努力建立一支由當地專業人士組成的團隊。憑藉他的背景和市場影響力，我們相信住宅房地產貸款水平將在相當短的時間內與哥倫布和印第安納波利斯的其他成長市場相媲美。

Non-interest income stabilized at $4.4 million, benefiting from gains in mortgage servicing rights and customer service fees. Our title insurance business and wealth management services, despite market challenges, remain key areas for future growth. We believe the growth trajectory in both divisions will be positively influenced by our holistic approach to client care, which includes coordinated outreach and referrals across all regions and business lines. We are focused on coordinating events with our key community leaders and COIs with the goal of introducing these unique businesses to a much wider population.

非利息收入穩定在 440 萬美元，受益於抵押貸款服務權和客戶服務費的成長。儘管面臨市場挑戰，我們的產權保險業務和財富管理服務仍然是未來成長的關鍵領域。我們相信，這兩個部門的成長軌跡將受到我們整體客戶服務方法的正面影響，其中包括所有地區和業務線的協調外展和推薦。我們致力於與主要社區領袖和 COI 協調活動，目標是將這些獨特的業務介紹給更廣泛的人群。

On the scale front, deposit growth has accelerated. Again, as I indicated earlier, this quarter we were up by $3.1 million compared to the linked quarter and up 4.1% from the prior year. Deposit costs have slowed as total interest expense declined from the linked quarter for the first time in over two years. We touched on earlier the success of the Homebuyer Plus program, and we expect to continue to add clients and expand this portfolio well into the third and fourth quarters.

從規模來看，存款增速加快。正如我之前指出的，本季我們的營收比上一季增加了 310 萬美元，比前一年增加了 4.1%。由於總利息支出較上一季出現兩年多來的首次下降，存款成本有所放緩。我們之前談到了 Homebuyer Plus 計劃的成功，我們預計將在第三和第四季度繼續增加客戶並擴展該投資組合。

Loan growth is certainly gaining traction. While not up to our historical standards of high single-digit growth on a year-over-year basis, did show growth from the linked quarter, and we are starting to see the positive impact to our pipeline of the calling efforts from the last several years.

貸款成長無疑正在獲得牽引力。雖然沒有達到我們同比高個位數成長的歷史標準，但確實顯示了相關季度的成長，而且我們開始看到過去幾個電話工作對我們的管道產生的積極影響年。

Over the last 12 months, we have had loan production of $164 million, excluding residential mortgage lending and right in line with total production from the prior 12 month period. Given our diverse markets, capacity and commitments, growing our loan portfolio remains a top priority as we move through the second half of 2024.

過去 12 個月，我們的貸款產量為 1.64 億美元，不包括住宅抵押貸款，與前 12 個月的總產量一致。鑑於我們的市場、能力和承諾多樣化，在 2024 年下半年，擴大我們的貸款組合仍然是首要任務。

A strong equity foundation is certainly a pre-requisite to our growth, and this quarter, we strengthened it. Our equity to asset ratio grew to 9.35%. Our tangible equity to tangible assets ratio increased to 7.2%, and our common equity Tier 1 ratio for the bank remains strong at 13.89%.

強大的股權基礎無疑是我們成長的先決條件，本季我們加強了這一基礎。我們的權益資產比率成長至 9.35%。我們的有形權益與有形資產比率增至 7.2%，銀行普通股一級比率維持在 13.89% 的強勁水準。

In terms of deepening existing relationships, more scope, we continue to embrace technology to enhance client engagement. We have further integrated our corporate sales champion and new contact center with more fintech platforms, aiming to deepen our penetration and improve our level of services per household.

在深化現有關係、擴大範圍方面，我們持續採用技術來增強客戶參與度。我們將企業銷售冠軍和新的聯絡中心與更多金融科技平台進一步整合，旨在深化滲透，提高每戶服務水準。

Emphasis continues on organic expansion opportunities. Significant resources have been added to our management team in the Greater Columbus market where we anticipate accelerated balance growth in both CRE and C&I arenas. Our optimism comes with an extended team that now includes four local commercial lenders with local support staff and a new professional treasury management specialist to drive funding opportunities at a level below the margin.

重點仍是有機擴張機會。我們在大哥倫布市場的管理團隊已增加了大量資源，我們預計商業房地產和工商業領域的平衡成長將加速。我們的樂觀來自於一個擴大的團隊，該團隊現在包括四家當地商業貸款機構、當地支援人員和一名新的專業財務管理專家，以推動低於利潤水平的融資機會。

We continue to build momentum from previous calling efforts and reap the benefits of the groundwork we laid in the previous quarters to focus on organic growth that includes SBA lending opportunities, both sold and portfolio loans. With the current pipeline of now over $7 million, we are poised to see meaningful contributions to future revenues as we assist small business clients with proper balance sheet structure to optimize cash flow.

我們繼續從先前的號召努力中汲取動力，並從我們在前幾個季度打下的基礎工作中獲益，重點關注有機增長，包括 SBA 貸款機會，包括出售貸款和組合貸款。目前的管道已超過 700 萬美元，我們將透過適當的資產負債表結構幫助小型企業客戶優化現金流，從而為未來的收入做出有意義的貢獻。

Speaking to operational excellence, the mortgage business line remains a key driver for our company. Despite the challenges posed by higher interest rates, our mortgage business continues to perform quite well. In addition to the gain on sale revenue of $1.3 million achieved this quarter, revenue from our servicing portfolio was a healthy $862,000.

說到卓越運營，抵押貸款業務線仍然是我們公司的關鍵驅動力。儘管面臨利率上升帶來的挑戰，我們的抵押貸款業務仍然表現良好。除了本季實現 130 萬美元的銷售收入收益之外，我們的服務組合收入也達到了 862,000 美元的健康水準。

We sold over 74% of our originated volume and well in line with our tradition levels with gain on sale yields on par with historical averages at 2.3%. This approach of an 80-20 sale to portfolio origination level not only supports our clients' needs, but also ensures the sustainability of our mortgage operations. The change in the market dynamics is evident in that over 94% of our volume thus far in 2024 has been for purchase or new construction transactions. Refinance volume is certainly a distant memory.

我們售出超過 74% 的原始銷量，與我們的傳統水平完全一致，銷售收益率與歷史平均 2.3% 持平。這種以 80-20 比例出售投資組合發起水準的方法不僅可以滿足客戶的需求，還可以確保我們抵押貸款業務的可持續性。市場動態的變化顯而易見，2024 年迄今為止，我們超過 94% 的交易量都是用於購買或新建交易。再融資量無疑已成為遙遠的記憶。

Finally, on asset quality, clearly a focus of ours since the Great Recession. In fact, net recoveries were actually positive this quarter and underscores the effectiveness of our risk management strategies. Our proactive internal loan review program continues to play a crucial role in early identification and mitigation of potential client stress, ensuring we address issues well before they escalate. The coverage of our non-performing portfolio remains comprehensive, showcasing not only our commitment to maintaining a healthy loan portfolio, but also building ample reserves as well.

最後，關於資產質量，這顯然是大衰退以來我們關注的焦點。事實上，本季的淨回收率實際上是正面的，突顯了我們風險管理策略的有效性。我們積極主動的內部貸款審查計劃繼續在早期識別和緩解潛在客戶壓力方面發揮至關重要的作用，確保我們在問題升級之前就解決問題。我們的不良資產組合覆蓋率依然全面，不僅反映了我們對維持健康貸款組合的承諾，而且還建立了充足的準備金。

Now, I'd like to turn the call over to our CFO, Tony Cosentino, for some additional comments on our quarterly performance. Tony?

現在，我想將電話轉給我們的財務長托尼·科森蒂諾（Tony Cosentino），請他對我們的季度業績提出一些額外的評論。托尼？

Thanks, Mark, and good morning, everyone. For the second quarter of 2024, as Mark indicated, we recorded net income of $3.1 million, with an EPS of $0.47. When we combine that with our first quarter performance, net income for the year is $5.5 million, delivering a full year EPS of $0.82 and slightly higher than the prior year first six months of $0.79.

謝謝，馬克，大家早安。正如 Mark 指出的，2024 年第二季我們的淨利潤為 310 萬美元，每股收益為 0.47 美元。當我們將其與第一季業績相結合時，全年淨利潤為 550 萬美元，全年每股收益為 0.82 美元，略高於去年前六個月的 0.79 美元。

Total operating revenue experienced a slight downturn, declining by 1% year-over-year, influenced by pressures from the competitive interest rate environment and money market fluctuations. We did recapture mortgage servicing rights revenue this quarter as a slight volatility in rates improved the valuation of our servicing portfolio. At quarter-end, the servicing portfolio was valued at $1.39 billion, up by 2.7%.

受利率競爭環境和貨幣市場波動壓力影響，營業總收入略為下滑，較去年同期下降1%。本季我們確實重新獲得了抵押貸款服務權收入，因為利率的輕微波動提高了我們服務投資組合的估值。截至季末，服務組合價值為 13.9 億美元，成長 2.7%。

On net interest margin, our net interest margin ended the quarter at 3.11% on a tax-equivalent basis, reflecting the asset mix shift and current market conditions. This represents a 12 basis point increase from the linked quarter. With funding costs stabilizing and contractual loan repricing approximately $150 million over the next six to nine months, we anticipate further improvements in asset yields and operating revenue. Cycle to date betas continue to be a net positive with the earning asset beta at 35% and the funding beta at 32%.

在淨利差方面，本季結束時，我們的淨利差以稅收等值計算為 3.11%，反映了資產結構的變化和當前的市場狀況。這比上一季增加了 12 個基點。隨著未來六到九個月融資成本穩定和合約貸款重新定價約 1.5 億美元，我們預計資產收益率和營業收入將進一步改善。週期至今的貝塔值仍為淨正值，收益資產貝塔值為 35%，融資貝塔值為 32%。

The efficiency of our balance sheet has been a focus with an emphasis on maintaining a healthy loan-to-deposit ratio of nearly 92% and cost effective capital management. This strategic focus has allowed us to support anticipated loan growth while maintaining a strong liquidity profile.

我們的資產負債表效率一直是我們關注的焦點，重點是維持近 92% 的健康貸存比以及具有成本效益的資本管理。這一策略重點使我們能夠支持預期的貸款成長，同時保持強勁的流動性狀況。

Our investment portfolio is calibrated to support projected loan growth and provide a base level of liquidity. We project about $25 million in amortizations annually, which should reduce the portfolio to our strategic goal of 12% sometime in late 2025. The current portfolio's yield of 2.76% ensures that each dollar amortized will potentially drive interest income higher by a minimum of 300 basis points on the redeployed funds.

我們的投資組合經過調整，可支持預計的貸款成長並提供基本的流動性水準。我們預計每年攤銷額約為 2500 萬美元，這應該會在 2025 年底某個時候將投資組合減少至 12% 的策略目標。目前投資組合的收益率為 2.76%，確保攤銷的每一美元都可能使重新部署的資金利息收入提高至少 300 個基點。

On expense management, which remains a strategic focus, our noninterest expenses were essentially flat when we adjust for the commission expense related to the 15% increase in mortgage volume. Total expenses for the quarter of $10.7 million remained relatively consistent with the total expenses recorded in the past four quarters, and we remain focused on controlling our expense base.

在費用管理方面，這仍然是一個策略重點，當我們調整與抵押貸款金額增加 15% 相關的佣金費用時，我們的非利息費用基本上持平。本季 1,070 萬美元的總費用與過去四個季度記錄的總費用保持相對一致，我們仍然專注於控制我們的費用基礎。

Now, as we turn to the balance sheet, and specifically on wholesale funding management, our strategic initiatives in loan growth and deposit management have been supported by the effective management of our wholesale funding. Specifically, deposit growth and portfolio pay downs have allowed us to eliminate over $46 million in variable rate average cost FHLB borrowings of 5.5% in the last 12 months. This is evident in our ability to maintain competitive funding costs despite market volatility. The balance sheet reflects stable figures for FHLB advances and subordinated debt as compared to the linked quarter.

現在，當我們轉向資產負債表，特別是批發融資管理時，我們在貸款成長和存款管理方面的策略性舉措得到了批發融資的有效管理的支持。具體來說，存款成長和投資組合支付下降使我們在過去 12 個月內消除了超過 4,600 萬美元的 FHLB 浮動利率平均成本為 5.5% 的借款。儘管市場波動，我們仍能維持有競爭力的融資成本，這一點顯而易見。與上一季相比，資產負債表反映了 FHLB 預付款和次級債務的穩定數字。

Our investment portfolio strategy: We've strategically realigned our investment portfolio to enhance liquidity, which is crucial for supporting anticipated loan growth. This approach is visible in the minor adjustments in our available for sale securities ensuring that we diversify asset types to bolster financial stability and prepare for future opportunities.

我們的投資組合策略：我們對投資組合進行了策略性調整，以增強流動性，這對於支持預期的貸款成長至關重要。這種方法在我們可供出售證券的細微調整中可見一斑，確保我們實現資產類型多元化，以增強金融穩定性並為未來的機會做好準備。

And on credit losses management, our proactive risk management strategies are highlighted by our steady allowance for credit losses currently at $15.6 million. This consistent level underscores our commitment to financial prudence and our ability to mitigate potential risks effectively.

在信用損失管理方面，我們積極主動的風險管理策略突顯在我們的信用損失準備金目前穩定在 1,560 萬美元。這種一致的水平強調了我們對財務審慎的承諾以及我們有效降低潛在風險的能力。

And finally, capital strength and shareholder value: The strength of our capital structure continues to be robust as evidenced by our shareholders' equity totaling $125.5 million, which is up nearly 7% compared to the prior year. We further enhanced shareholder value this quarter by continuing to repurchase our shares at average prices below tangible book value.

最後，資本實力與股東價值：我們的資本結構實力依然強勁，股東權益總額為 1.255 億美元，比上一年增長近 7%，證明了我們的資本結構實力仍然強勁。本季我們繼續以低於有形帳面價值的平均價格回購股票，進一步提高了股東價值。

I'll now turn the call back over to Mark.

我現在將把電話轉回給馬克。

Thank you, Tony. Overall, it was a very nice quarter for us. We made substantial progress across a number of fronts and saw meaningful contributions from each of our business lines and each of our regions.

謝謝你，托尼。總的來說，這對我們來說是一個非常美好的季度。我們在多個領域取得了實質進展，每個業務線和每個地區都做出了有意義的貢獻。

I'm excited for the opportunities that our new team in Columbus will deliver and I'm optimistic that the Cincinnati market through the efforts of our new leader will deliver results well in line with our experiences from having entered other growing markets -- other metropolitan growing markets like Columbus and Indianapolis.

我對我們在哥倫布的新團隊將提供的機會感到興奮，我樂觀地認為，透過我們新領導的努力，辛辛那提市場將取得與我們進入其他成長市場（其他大都市）的經驗非常一致的結果。哥倫布和印第安納波利斯等不斷成長的市場。

Now, we'll open the call up for questions.

現在，我們將開始提問。

(Operator Instructions) Brian Martin, Janney Montgomery.

（操作員說明）Brian Martin，Janney Montgomery。

So I joined a minute or two late, Mark, so I may have missed some of your comment on. But I was just wondering just on your loan growth outlook. I know I think you mentioned maybe being optimistic on that as you look the back half of the year or just into next year. But can you just talk about what your outlook there is? Just what you're hearing from your customers in terms of demand or opportunities out there?

所以我遲到了一兩分鐘，馬克，所以我可能錯過了你的一些評論。但我只是想知道你們的貸款成長前景。我知道，我認為你提到，當你展望今年下半年或明年時，你可能對此持樂觀態度。但您能談談您的看法嗎？您從客戶那裡聽到的需求或機會是怎麼樣的？

Sure. It seems like our loan clients have digested higher rates a bit more easily recent. We continue to find good traction in CRE. C&I, as we all know, is a bit more difficult to find, but we still have a focus on that.

當然。看來我們的貸款客戶最近更容易消化更高的利率。我們繼續在商業房地產領域找到良好的吸引力。眾所周知，C&I 比較難找到，但我們仍然關注這一點。

But clearly, Brian, with our new leader, new commercial lender in Columbus as well as support staff and treasury management individual in Columbus, our expectations remain high. We would like to certainly think we can get back to that middle to upper single-digit growth level that we've been more used to.

但顯然，布萊恩，與我們的新領導人、哥倫布的新商業貸款機構以及哥倫布的支援人員和財務管理人員一起，我們的期望仍然很高。我們當然希望我們能夠回到我們已經習慣的中上個位數成長水準。

Clearly, the funding is available, and we have some other opportunities to find and locate additional funding below the margin. So we're excited about the growth. And of course, Steve Walz, our Chief Lending Officer, is here as well. And I would ask Steve to opine a little bit on our pipeline and the projected growth.

顯然，資金是可用的，我們還有其他一些機會來尋找和找到低於保證金的額外資金。所以我們對這種成長感到興奮。當然，我們的首席貸款官 Steve Walz 也在這裡。我想請史蒂夫對我們的管道和預計的成長發表一些意見。

Steve, I think we're generally aligned and optimistic.

史蒂夫，我認為我們總體上是一致且樂觀的。

No. Certainly, Mark. I would agree with your comments earlier regarding the Columbus market, our expectations going into the second half of the year there in particular with the new leadership. And not to be overlooked and this may also, Brian, be more of an early '25 play, but I wouldn't overlook the addition of the dedicated experienced TM professional that we've added there as Mark noted C&I relationships tend to take a little time to cultivate and bring to the fore. So I do think that's going to be meaningful.

不。當然，馬克。我同意您之前對哥倫布市場的評論，我們對下半年的期望，特別是對新領導層的期望。不可忽視的是，Brian，這也可能更像是 25 年早期的遊戲，但我不會忽視我們在其中添加的經驗豐富的 TM 專業人士，因為 Mark 指出 C&I 關係往往需要很少有時間去培養和脫穎而出。所以我確實認為這將是有意義的。

I thought our balances, frankly, at 6.30% would be a little more robust. We had a few numbers of meaningful loans not closed by 6.30% that I thought it would. They closed during the first couple of weeks of July. So we've got a good start I think into Q3 and as Mark noted looking good for the second half of the year to meet those expectations we had at the start of the year.

坦白說，我認為 6.30% 的餘額會更加穩健一些。我們有一些有意義的貸款，但沒有以我原以為的 6.30% 的速度結清。他們在七月的前幾週關閉。因此，我認為第三季我們有了一個良好的開端，正如馬克所指出的那樣，下半年的情況看起來不錯，可以滿足我們年初的預期。

Yes. Final comment, Brian. The single digit would be okay, but the 8% that we averaged for seven or eight years almost consistently is certainly more in the CEO's appetite. So again, we have a pretty nice pipeline, and we seem to be finding some really nice projects that's all for the taking as we see them today. So we continue to be pretty optimistic on that front.

是的。最後評論，布萊恩。個位數還可以，但我們七、八年的平均成長率幾乎始終如一的 8% 肯定更符合執行長的胃口。再說一次，我們有一個非常好的管道，而且我們似乎正在找到一些非常好的項目，正如我們今天所看到的那樣，這些項目都是可以接受的。因此，我們在這方面仍然非常樂觀。

Okay. That's good news. Thanks. And then how about just on the mortgage. It also looks like some positive developments there with the entrance into Cincinnati, but just -- and maybe some potential benefit from rates here. So just wondering how you're thinking about the back half of the year in terms of mortgage and then just the contributions that Cincinnati can bring to the table here.

好的。這是個好消息。謝謝。然後只靠房貸怎麼樣？隨著進入辛辛那提，看起來也出現了一些積極的進展，但也許這裡的利率可能會帶來一些潛在的好處。因此，我想知道您如何看待下半年的抵押貸款以及辛辛那提可以帶來的貢獻。

Sure. From a volume perspective, we're beginning to see a little inertia getting us to that $300 million run rate that would get us back to our once-perceived minimum number of $500 million, which the Cincinnati initiative certainly has a lot of potential. The gentleman has been hired. We found someone who's well versed in the market, who has a plethora of experience, who's going to obviously produce as well as find the team. And we've enjoyed the opportunities that we've had in the Columbus market for now 12, 14 years, Indi for a few years, and of course now Cincinnati. And as we all know, it's all about people and the team and we're optimistic about how they're going to contribute.

當然。從數量的角度來看，我們開始看到一點慣性讓我們達到 3 億美元的運行速度，這將使我們回到曾經認為的 5 億美元的最低數量，辛辛那提計劃當然有很大的潛力。這位先生已被聘用。我們找到了一個精通市場、擁有豐富經驗、顯然能夠生產並找到團隊的人。我們在哥倫布市場享受了 12、14 年的機會，在印度市場也享受了幾年，當然還有現在在辛辛那提。眾所周知，這一切都與人員和團隊有關，我們對他們將如何做出貢獻持樂觀態度。

As Indianapolis has come on, I think we mentioned that they've I think contributed about a third of the volume as we speak and we thought going into Indianapolis, they would become another Columbus. And I think our optimism is finding our roots and delivering. And I don't think anything is different than the Cincinnati market.

隨著印第安納波利斯的到來，我想我們提到他們貢獻了大約三分之一的捲，我們認為進入印第安納波利斯，他們將成為另一個哥倫布。我認為我們的樂觀主義是找到我們的根源並實現目標。我認為與辛辛那提市場沒有什麼不同。

As far as the volume, we're going to be looking for predominantly sold mortgages. We have certainly a pipeline of commercial for our funding. So sold loans is certainly going to be the focus.

就數量而言，我們將尋找主要出售的抵押貸款。我們當然有一系列商業融資管道。因此，出售貸款肯定會成為焦點。

Yes, Brian. Our base case as we sit today is a 6.5% to maybe a 6.25% 30-year rate, which probably delivers $130 million to $140 million of volume between now and the end of the year. We feel like if we can get another [25 to 38] of a move down below 6%, I think that adds probably another $35 million to $40 million between now and the end of the year. But we think the 250 range for the full year, the 275 basis points is pretty much the base case, but we're certainly optimistic that's going to get better based upon the expectation of rate changes going forward.

是的，布萊恩。我們今天的基本預測是 30 年利率為 6.5% 到 6.25%，從現在到年底可能會帶來 1.3 億到 1.4 億美元的交易量。我們覺得，如果我們能夠再次將利率降低到 6% 以下 [25 至 38]，我認為從現在到年底，這可能會再增加 3,500 萬至 4,000 萬美元。但我們認為全年 250 個基點的區間、275 個基點幾乎是基本情況，但我們當然樂觀地認為，基於未來利率變化的預期，情況會變得更好。

Yes. And then '25 even maybe a bit more optimistic if those rates come down, Tony, and Cincinnati begins to really gain some momentum.

是的。然後25年，如果這些利率下降，托尼和辛辛那提開始真正獲得一些動力，甚至可能會更加樂觀。

Yes, absolutely. Because I think we think the leadership person is probably a $15 million to $20 million a year individual. And if we can get a team like we have in Indianapolis, that's a $50 million to $60 million at a minimum region.

是的，絕對是。因為我認為我們認為領導者可能是年收入 1500 萬至 2000 萬美元的個人。如果我們能組建一支像印第安納波利斯那樣的球隊，那麼至少需要 5000 萬到 6000 萬美元。

And I think, Brian, tagging on to that, we certainly see certainly an expansion in the multi-family housing, which hopefully will free up certainly more single-family financing opportunities. So it seems like the supply is somewhat equaling demand and that in and of itself, not just the rates, but also the inventory increasing will certainly add some fuel to our fire.

布萊恩，我認為，我們肯定會看到多戶住房的擴張，這有望釋放更多單戶融資機會。因此，供應似乎在某種程度上等於需求，就其本身而言，不僅是價格，而且庫存的增加肯定會火上澆油。

Got you. Okay. And then I guess also feels like the outlook for margin is optimistic. Tony, you talked about the borrowings going down over the last 12 months and the benefit from the homebuyer program. So I guess, is the outlook on margin a bit better than expected, or just how are you thinking about that? If you continue to have this ability to fund it at the lower rates and you're getting a bit higher yields on the loans, it feels like that trajectory on the margin here -- just where do you see the margin heading, given the outlook and then also factoring in the potential for a rate cut or two here maybe in the back half of the year?

明白你了。好的。然後我想利潤率的前景也是樂觀的。托尼，您談到了過去 12 個月的借款下降以及購房者計劃的好處。所以我想，保證金前景是否比預期好一些，或者您對此有何看法？如果你繼續有能力以較低的利率為其提供資金，並且你獲得的貸款收益率略高，那麼感覺就像這裡的保證金軌跡一樣——考慮到前景，你會看到保證金走向何方然後還要考慮到今年下半年可能降息一兩次的可能性？

Yes. I think I've been generally pessimistic on margin moving higher. If you'd asked me 90 days ago, I'd say we'd be lucky to get to this level that we're at in this quarter. I am certainly more optimistic today. The loans we're looking at, I think the base levels, the 7.25% range that we're seeing that seems to be the marketplace has accepted that.

是的。我認為我對利潤率上升普遍持悲觀態度。如果您在 90 天前問我，我會說我們很幸運能夠達到本季的水平。今天我當然更樂觀。我們正在研究的貸款，我認為基本水平，我們看到的 7.25% 的範圍似乎是市場已經接受的。

Despite what maybe I've read in a number of earnings releases, we're not seeing as much deposit competition on rate here than maybe some others are identifying. But we'll see. And we do think stabilization has pretty much come to our deposit base. And contractual repricing is significant, 15% of our portfolio which drives it up 300 basis points at minimum.

儘管我可能在許多財報發布中讀到過這些內容，但我們並沒有看到這裡的存款利率競爭比其他一些人所認為的那麼激烈。但我們會看到。我們確實認為我們的存款基礎已經基本穩定。合約重新定價非常重要，占我們投資組合的 15%，這至少推動其上漲 300 個基點。

So I am more optimistic. I think we're going to continue to see positive move in margin every quarter. You're never going to get back to the 3.75% range, but I do think that mid-3s is potential as you get into '25

所以我比較樂觀。我認為我們每個季度都會繼續看到利潤率的正面變化。你永遠不會回到 3.75% 的範圍，但我確實認為當你進入 25 世紀時，中三分是有潛力的

Well, Brian, just to tag on to that, with the 92% loan-to-deposit ratio, we can be a little bit more selective. We started to see marginally higher-rate deals that we've been competitive on. So I agree with Tony with the repricing that we have coming in the pipeline from -- how many basis points that we think Tony that we might see on $150 million?

好吧，布萊恩，我想強調一下，貸存比為 92%，我們可以更有選擇性。我們開始看到我們一直具有競爭力的利率略高的交易。因此，我同意托尼的觀點，即我們正在醞釀的重新定價——我們認為托尼可能會看到 1.5 億美元的價格有多少個基點？

Yes. At a minimum, 275 basis points on repricing, because all of that was at high-3s. So I think that's generally where it should be.

是的。重新定價至少 275 個基點，因為所有這些都處於高 3 個基點。所以我認為這通常是它應該在的地方。

So Brian, it's incremental adds as well as increasing the average with some repricing. So like every other CEO, I'm a little more optimistic maybe than Tony. We have a good balance, so to speak, on where we see that going, but clearly, we're encouraged by the slowing of the interest expense on the funding side.

所以布萊恩，這是增量增加以及通過一些重新定價來提高平均水平。因此，像其他所有執行長一樣，我可能比托尼更樂觀一些。可以說，我們在未來發展方向上保持了良好的平衡，但顯然，融資方面利息支出的放緩令我們感到鼓舞。

Yes. That was positive in the quarter. And Tony, just that repricing, what was the -- it's $150 million that reprices, maybe 250 basis points to 300 basis points higher, is that what you said over the next 12 months?

是的。本季的情況是正面的。東尼，剛剛的重新定價，是什麼——重新定價了 1.5 億美元，可能高出 250 個基點到 300 個基點，這就是您在接下來的 12 個月裡所說的嗎？

Yes.

是的。

Okay. So $150 million at 250 basis points to 300 basis points higher coming in there. So okay. And then, just as far as the credit outlook, it still feels pretty healthy in terms of how you're thinking about the reserve levels. I guess, is the expectation that maybe you can credit holds that reserve coverage may moderate a bit given the favorable trends you're still seeing or no real problem credit formation out there?

好的。因此，1.5 億美元的利率將上漲 250 至 300 個基點。那麼好吧。然後，就信貸前景而言，就您如何看待準備金水平而言，感覺仍然相當健康。我想，考慮到您仍然看到的有利趨勢或沒有真正的信貸形成問題，您是否可以預期，也許您可以信貸持有，準備金覆蓋率可能會有所緩和？

Yes, Brian, from a high level, again, we've seen a little bit of stress in a couple of relationships, but we're well secured and pretty optimistic on where those are going to go. But again, Tony and I are good bookends on that. I want $30 million in reserve, and Tony is happy with a $15 million, $16 million coverage. But I think we're pretty optimistic about our portfolio and credit quality and our review process. But Steve Walz can maybe make a few comments relative to the two that maybe have gone classified on?

是的，布萊恩，從高層次來看，我們再次在一些關係中看到了一點壓力，但我們很安全，並且對這些關係的走向非常樂觀。但東尼和我又是這方面的好書擋。我想要 3000 萬美元的儲備金，托尼對 1500 萬美元、1600 萬美元的保險很滿意。但我認為我們對我們的投資組合、信用品質以及我們的審查流程非常樂觀。但史蒂夫·沃爾茲（Steve Walz）也許可以就這兩個可能已被列為機密的問題發表一些評論？

Yes, Brian. We had a little uptick in delinquency here. They weren't anything we didn't see coming. As Mark noted, we do have a very robust internal loan review process. So these were ones we had been watching. We don't think there's anything going on in our portfolio. We don't understand.

是的，布萊恩。我們這裡的犯罪率略有上升。它們並不是我們沒有預見的。正如馬克所指出的，我們確實有一個非常健全的內部貸款審查流程。這些都是我們一直在關注的。我們認為我們的投資組合中沒有發生任何事情。我們不明白。

Our credit standards have not changed over the years meaningfully. So we remain confident in our credit culture. So I think in the reviews we have done specifically in relation to our CRE portfolio continues to show the leases are strong and balanced and the principles behind them significant. So I think we feel pretty good about where we are, and I think we know our portfolio well.

多年來，我們的信用標準沒有發生有意義的變化。因此，我們對我們的信用文化仍然充滿信心。因此，我認為，在我們專門針對我們的商業房地產投資組合進行的審查中，繼續表明租賃是強而有力且平衡的，並且背後的原則很重要。所以我認為我們對自己的處境感覺很好，而且我認為我們很了解我們的投資組合。

And I think, Brian, I'd just add. We ended the quarter at $155 million reserve to loans. I think loan growth generally is going to move that directionally south. We were certainly extremely comfortable when we were in the $130 million range given our credit risk portfolio and the amount of loan reviews we do. I don't think we'll get back there, but I do think we're headed towards that mid-$140 million range, which would still put us to the high end of our peer group and still provide very solid coverage.

我想，布萊恩，我只想補充一下。本季結束時，我們的貸款準備金為 1.55 億美元。我認為貸款成長總體上會向南移動。考慮到我們的信用風險投資組合和我們所做的貸款審查數量，當我們處於 1.3 億美元的範圍內時，我們當然感到非常放心。我不認為我們會回到那個水平，但我確實認為我們正朝著 1.4 億美元的中間方向前進，這仍然會讓我們處於同行群體的高端，並且仍然提供非常可靠的覆蓋範圍。

Yes, certainly better than peer at that level. And just the couple of credits that Steve talked about, really if they were credits you already knew about, I guess the expectation there seems like it's just a timing issue as you get those resolved and not really any significant loss content is what it sounds like. Is that fair?

是的，肯定比同級別的同行更好。只是史蒂夫談到的幾個學分，真的，如果它們是你已經知道的學分，我猜你的期望似乎只是一個時間問題，因為你解決了這些問題，實際上並沒有任何重大損失內容，就像聽起來的那樣。這樣公平嗎？

That is a fair statement, Brian. Those are generally well-secured loans or supported by SBA guarantees. As you know, the challenge unfortunately is any problem takes time and effort to resolve in that arena, but we don't expect any loss concerns there.

這是一個公平的說法，布萊恩。這些通常是擔保良好的貸款或由 SBA 擔保支持。如您所知，不幸的是，挑戰在於該領域的任何問題都需要時間和精力來解決，但我們預計不會有任何損失問題。

Yes. Okay. All right. That's all I had guys. A lot of encouraging things there, so I appreciate it.

是的。好的。好的。這就是我的伙伴們的全部。那裡有很多令人鼓舞的事情，所以我很感激。

Thanks, Brian.

謝謝，布萊恩。

Thanks, Brian.

謝謝，布萊恩。

(Operator Instructions) Seeing no further questions, I will now turn the call back to Mark Klein.

（操作員指示）由於沒有其他問題，我現在將電話轉回給 Mark Klein。

Thank you. Once again, thanks for joining us. I look forward to speaking with you in October for our third-quarter 2024 results. Thanks for joining. Goodbye.

謝謝。再次感謝您加入我們。我期待在 10 月與您討論我們的 2024 年第三季業績。感謝您的加入。再見。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。