ServisFirst Bancshares Inc (SFBS) 2024 Q3 法說會逐字稿

Greetings, and welcome to the ServisFirst Bancshares third-quarter earnings call. (Operator Instructions)

大家好，歡迎參加 ServisFirst Bancshares 第三季財報電話會議。（操作員說明）

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce you to your host, Davis Mange, Director of Investor Relations. Thank you, Davis. You may begin.

現在我很高興向您介紹東道主投資者關係總監戴維斯·曼格(Davis Mange)。謝謝你，戴維斯。你可以開始了。

Good afternoon, and welcome to our third-quarter earnings call. Today's speakers will cover some highlights from the quarter and then take your questions. We'll have Tom Broughton, our CEO; Henry Abbott, our Chief Credit Officer; Kirk Pressley, our CFO; and Ed Woodie, our Controller.

下午好，歡迎參加我們的第三季財報電話會議。今天的演講者將介紹本季度的一些亮點，然後回答您的問題。湯姆·布勞頓 (Tom Broughton)，我們的執行長； Henry Abbott，我們的首席信貸官；柯克‧普萊斯利 (Kirk Pressley)，我們的財務長；和我們的財務總監艾德‧伍迪 (Ed Woodie)。

I'll now cover our forward-looking statements disclosure. Some of the discussion in today's earnings call may include forward-looking statements. Actual results may differ from any projections shared today due to factors described in our most recent 10-K and 10-Q filings. Forward-looking statements speak only as of the date they are made, and ServisFirst assumes no duty to update them.

我現在將介紹我們的前瞻性聲明披露。今天的財報電話會議中的一些討論可能包括前瞻性陳述。由於我們最近的 10-K 和 10-Q 文件中描述的因素，實際結果可能與今天分享的任何預測有所不同。前瞻性陳述僅代表發布當日的情況，ServisFirst 不承擔更新這些陳述的責任。

With that, I'll turn the call over to Tom.

這樣，我就把電話轉給湯姆。

Thank you, David. Good afternoon, and thank you for joining our third-quarter earnings call. We were very pleased with the quarter's metrics, and we're pleased with the outlook for the future. And I'll start by talking about loans and sort of outlook there.

謝謝你，大衛。下午好，感謝您參加我們的第三季財報電話會議。我們對本季的指標非常滿意，並對未來的前景感到滿意。我將首先討論貸款和前景。

Our pipeline is very strong, and we had great loan growth in the second quarter and not in the third quarter. We are here in the line waiting until after the election more than I would have expected. Though our loan balances did not grow in the quarter, we had early payoffs on $126 million of loans at an average rate of 4.89%. So that was good news for the shareholders.

我們的通路非常強勁，第二季的貸款成長強勁，而不是第三季。我們在這裡排隊等待選舉後的時間比我預期的要多。儘管本季我們的貸款餘額沒有成長，但我們以 4.89% 的平均利率提前還清了 1.26 億美元的貸款。所以這對股東來說是個好消息。

In addition, we had repricing on $105 million of loans in the quarter of low-rate fixed rate loans. This will contribute to improved margin going forward, as Kirk will discuss in more detail in a few minutes. And he will also explain our positive balance sheet outlook.

此外，我們對本季 1.05 億美元的低利率固定利率貸款進行了重新定價。這將有助於提高未來的利潤率，柯克將在幾分鐘內更詳細地討論。他還將解釋我們積極的資產負債表前景。

Loan demand is very robust in one segment, hospitality, but that's certainly a segment where we have limits on our exposure to the industry. We typically see very strong loan growth at year-end, and I'm assuming we'll see a rebound in closings in the fourth quarter. The election delay is typical. But after a strong second quarter, I thought that we would not see that issue this year, but we did. It could also be some customers wanting to see if we have more Fed rate cuts come after the one that was at the very end of the third quarter. We got nothing, as you all know, until the very end of the third quarter.

酒店業這一領域的貸款需求非常強勁，但這肯定是我們對該行業的投資受到限制的一個領域。我們通常會在年底看到非常強勁的貸款成長，我假設我們會在第四季度看到成交量反彈。選舉延遲是典型現象。但在第二季表現強勁之後，我以為我們今年不會再遇到這個問題，但我們確實做到了。一些客戶也可能想知道，繼第三季末之後，聯準會是否還會進一步降息。正如你們所知，直到第三季末我們什麼也沒得到。

Also I think some borrowers want to see more certainty on rate cuts. If some projects do not pencil out at current rates in many cases and demand for new product on many segments of commercial real estate is suppressed just due to overbuilding in the last couple of years in some segments.

此外，我認為一些借款人希望看到降息的更多確定性。如果某些項目在許多情況下沒有按當前速度完成，並且商業房地產許多領域對新產品的需求僅僅由於過去幾年某些領域的過度建設而受到抑制。

On the deposit side, we did have one municipal account outflow in the third quarter. And we expect it to return in the fourth quarter. We are trying to be disciplined on loan pricing, and we do have great options when we had, as you know, no broker deposits or federal home loan advances on our balance sheet. We do continue to see more pricing discipline from our major competitors. So that is a very good thing.

在存款方面，第三季我們確實有一個市政帳戶流出。我們預計它將在第四季度回歸。我們正在努力嚴格控制貸款定價，正如您所知，當我們的資產負債表上沒有經紀人存款或聯邦住房貸款預付款時，我們確實有很多選擇。我們確實繼續看到我們的主要競爭對手更加嚴格的定價紀律。所以這是一件非常好的事情。

As Henry will discuss, loan losses continue to be quite benign and we still have not seen any normalization as they refer to these days. The bottom line in this economy continues to be quite good. Having said that, we have said for a long while that we need to see higher margins because we expect higher loan losses at some point in the future.

正如亨利將討論的那樣，貸款損失仍然相當溫和，我們仍然沒有看到他們現在所說的任何正常化。經濟的底線仍然相當不錯。話雖如此，我們長期以來一直表示，我們需要看到更高的利潤率，因為我們預計未來某個時候的貸款損失會更高。

Loan losses are often lumpy, and we can see large increases in the quarter. Nothing expected today, but it's always best to expect the unexpected. The rate cuts will help some of our developers that have been pinched by the rate increases. A good example is one of our larger relationships as a workforce housing real estate developer that experienced tight cash flows in the last year as their interest rate hedges have expired. Due to Hurricane Helene, their payments were delayed past month end and past quarter end, and as abudance of caution we've downgraded all their nine projects to special mention.

貸款損失通常是不穩定的，我們可以看到本季大幅增加。今天沒有什麼好預料的，但最好還是期待意外的事情。降息將幫助一些因升息而陷入困境的開發商。一個很好的例子是我們作為勞動力住房房地產開發商的較大關係之一，由於利率對沖到期，去年經歷了現金流緊張。由於颶風海倫，他們的付款被推遲到月底和季度末，出於謹慎考慮，我們將他們的所有九個項目降級為特別提及。

But one of those projects was paid off after quarter end of a $10 million loan. They have one project that has permitting delays that will require them to do a capital call with their investors. The customer does have a very solid balance sheet net worth; he and his spouse personally guarantee the debt.

但其中一個項目在季度末償還了 1000 萬美元的貸款。他們有一個允許延遲的項目，這將要求他們與投資者進行資本催繳。客戶確實擁有非常穩健的資產負債表淨值；他和他的配偶親自為債務提供擔保。

So this is an example of how rate cuts will help some customers whose cash flow is impacted by higher rates. I'm surprised not seeing more of this in our customer base, but many customers have been able to pass on interest rate increases to their customers in the form of higher prices, including in the form of higher rents on the apartment complexes and other properties, warehouses.

因此，這是一個例子，說明降息將如何幫助一些現金流受到較高利率影響的客戶。我很驚訝在我們的客戶群中沒有看到更多這樣的情況，但許多客戶已經能夠以更高的價格形式將利率上漲轉嫁給他們的客戶，包括以公寓大樓和其他房產更高的租金的形式、倉庫。

So in any event, we are pleased with where we are from a credit quality standpoint. We expect loan demand to rebound in the fourth quarter, to some extent at least, and pleased with our pipeline in the future. So from a standpoint of where we are with our teams, we did add four new bankers in the quarter. We have a total of 155 frontline bankers today. Those are all commercial and private bankers. We are very pleased with our new markets, Memphis and Auburn are the newest markets, and they are really -- neither one of them have a permanent office yet, but they're both making great progress on that front.

因此，無論如何，從信用品質的角度來看，我們對我們的現狀感到滿意。我們預計貸款需求將在第四季度反彈，至少在某種程度上，並對我們未來的管道感到滿意。因此，從我們團隊的情況來看，我們確實在本季度增加了四名新銀行家。今天我們共有 155 位一線銀行家。這些都是商業和私人銀行家。我們對我們的新市場非常滿意，孟菲斯和奧本是最新的市場，而且它們確實還沒有一個永久的辦事處，但它們都在這方面取得了巨大的進展。

So I'll turn it over to Henry now to talk in more detail about credit quality.

因此，我現在將其交給亨利，更詳細地討論信用品質。

Thank you, Tom. I'm pleased with our credit quality and how the loan portfolio performed in the third quarter. We saw minimal charge-offs and increased our ALLL. Our annualized net charge-offs to total average loans was only 9 basis points for the quarter. And that was down from 10 basis points in the second quarter and a 40% reduction from the 15 basis points we experienced in the third quarter of 2023.

謝謝你，湯姆。我對我們的信貸品質以及第三季貸款組合的表現感到滿意。我們看到了最少的沖銷並增加了我們的 ALLL。本季我們的年化淨沖銷額與平均貸款總額比僅 9 個基點。這比第二季的 10 個基點下降了，比 2023 年第三季的 15 個基點下降了 40%。

We grew our loan loss reserve by $4 million for the quarter and the loan loss reserve to total loans increased to 1.31%, which is the same percentage we had at the first quarter of the year and same time prior period in 2023. We did create a special Hurricane Celina reserve of $2.7 million. We continue to get our arms around the impact of Hurricane Celina and now Milton.

本季我們的貸款損失準備金增加了 400 萬美元，貸款損失準備金佔總貸款的比例增加至 1.31%，與今年第一季和 2023 年同期的百分比相同。我們確實設立了 270 萬美元的颶風塞琳娜特別儲備金。我們繼續應對颶風塞琳娜和現在的米爾頓的影響。

Some of our clients operate businesses that are dependent on tourism. As the infrastructure in the affected areas is restored, our clients will be positioned to help repair and rebuild the impacted areas in both Florida and North Carolina.

我們的一些客戶經營依賴旅遊業的業務。隨著受影響地區的基礎設施得到恢復，我們的客戶將能夠幫助修復和重建佛羅裡達州和北卡羅來納州的受影響地區。

Our NPAs to total assets were only 25 basis points in the third quarter. And as always, we continually monitor all segments of the loan portfolio. I'm also pleased to say our AD&C as a percent of capital dropped to 80%, which is the lowest that has been in more than three years. As Tom mentioned, the Federal Reserve 50 basis point decrease was a welcome sign to our customers and various projects with decreased debt service. I'm pleased with the results of the third quarter and our positive momentum as we continue to build in new markets and continue to grow our core markets.

第三季我們的不良資產佔總資產的比例僅 25 個基點。一如既往，我們持續監控貸款組合的所有部分。我還很高興地說，我們的 AD&C 佔資本的百分比下降至 80%，這是三年多來的最低水準。正如 Tom 所提到的，聯準會降息 50 個基點對於我們的客戶和各種債務償還減少的項目來說是一個受歡迎的訊號。我對第三季的業績以及我們繼續開拓新市場並繼續發展核心市場的積極勢頭感到滿意。

With that, I'll hand it over to Kirk.

這樣，我就把它交給柯克了。

Thank you, Henry. Good afternoon. We are very pleased with the progress the bank has made so far this year. We continue to make great progress on the margin. As usual, I'm going to focus my comments today on linked quarter because the trends are very meaningful and it will highlight our momentum.

謝謝你，亨利。午安.我們對銀行今年迄今的進展感到非常滿意。我們繼續在邊際上取得巨大進步。像往常一樣，我今天的評論將集中在相關季度，因為趨勢非常有意義，它將凸顯我們的勢頭。

Net income was up approximately 15% from the second quarter; diluted EPS about the same. Margin is up an impressive 9%. We did benefit from the timing of some tax credit investments and positive return to accrual adjustments to reduce the tax rate for the quarter by a few percent. Even excluding these tax benefits, we had great growth in net income and EPS.

淨利潤較第二季成長約15%；稀釋後每股收益大致相同。利潤率成長了 9%，令人印象深刻。我們確實受益於一些稅收抵免投資的時機以及應計調整的積極回報，將本季的稅率降低了幾個百分點。即使排除這些稅收優惠，我們的淨利潤和每股收益也有很大的成長。

That growth was led by the net interest margin. Margin increased to $115 million in the third quarter versus $106 million in the second quarter. The margin is increasing from the continued repricing of our fixed rate loans and securities and from the strong loan growth during the second quarter, along with doing a good job at managing the cost of liabilities. The yield on interest-earning assets increased by 11 basis points, while the rate paid on interest-bearing liabilities only increased by 3 basis points.

這一增長是由淨利差帶動的。第三季利潤率增至 1.15 億美元，而第二季為 1.06 億美元。由於我們固定利率貸款和證券的持續重新定價以及第二季度貸款的強勁增長，以及在管理負債成本方面的出色工作，利潤率不斷增加。生息資產收益率上升11個基點，而付息負債利率僅上升3個基點。

The net interest margin percentage increased by 5 basis points over the prior quarter while holding on average about $600 million more in cash, which negatively impacts the NIM percentage calculation. As we have noted in the past, we are slightly liability sensitive. We realized much of the benefit of a rate decrease in the first few months.

淨利差百分比比上一季增加了 5 個基點，同時持有的現金平均增加了約 6 億美元，這對淨利差百分比計算產生了負面影響。正如我們過去所指出的，我們對責任有些敏感。我們在最初幾個月就意識到了降息的好處。

We benefit from the rate decline in general, but even more early on as about 45% of the variable rate loans repriced over a 30-day period. The Fed rate change in September had a modest positive impact on the quarter. We'll continue to benefit from the rate drop, but that benefit will decline over time as assets reprice at the current lower rates. As you know, liability sensitive means that liabilities move faster, but the asset repricing will eventually catch up.

我們總體上受益於利率下降，但更早的是，約 45% 的浮動利率貸款在 30 天內重新定價。聯準會 9 月的利率變動對該季度產生了適度的積極影響。我們將繼續從利率下降中受益，但隨著資產以當前較低的利率重新定價，這種好處將隨著時間的推移而下降。如您所知，負債敏感意味著負債移動得更快，但資產重新定價最終會趕上。

We try and structure the balance sheet to be neutral. We aren't making rate bets. Our strong margin tailwind from the repricing of fixed rate loans and securities will continue over the next few years within the current projected rates. Obviously, the lower the rates, the less the benefit from the repricing. And as time goes on, more of the repriced assets will be from more recent higher rate instruments. Of course, our cost of funds will be dropping too. In other words, we continue to be happy with the tailwind, and we think we have a few years left of that benefit.

我們嘗試將資產負債表建構成中性的。我們沒有進行利率押注。固定利率貸款和證券重新定價帶來的強勁利潤推動力將在未來幾年在當前預計利率範圍內持續下去。顯然，利率越低，重新定價帶來的好處就越少。隨著時間的推移，更多的重新定價資產將來自最近的利率較高的工具。當然，我們的資金成本也會下降。換句話說，我們繼續對順風感到滿意，我們認為我們還有幾年的時間才能享受這種好處。

Before we get to the other parts of the income statement, I'd like to take a second to discuss the 8-K that we filed today about my resignation. I'm resigning from the bank for personal reasons. I would like to say that this is an amazing bank, which has been proven over many years in many different operating environments. The bank has great employees, and it is positioned for a great future.

在討論損益表的其他部分之前，我想花點時間討論一下我們今天提交的有關我辭職的 8-K。我因個人原因從銀行辭職。我想說，這是一家了不起的銀行，多年來在許多不同的營運環境中都得到了證明。該銀行擁有優秀的員工，並且擁有美好的未來。

Tom, Rodney, and Henry are consistent and proven leaders who have built this amazing bank into what it is today. Ed Woodie, who has been the long-time Controller of the bank, has been named as the interim CFO. Ed is an incredibly talented individual and will do a fantastic job.

湯姆、羅德尼和亨利是始終如一、久經考驗的領導者，他們將這家令人驚嘆的銀行打造成了今天的樣子。長期擔任該銀行財務總監的 Ed Woodie）已被任命為臨時財務長。艾德是一個非常有才華的人，他會做得非常出色。

I'd like to turn it over to Ed now to go through the rest of the income statement.

我現在想把它交給艾德來檢查損益表的其餘部分。

Thank you, Kirk, and good afternoon, everyone. Noninterest income performed well again in the third quarter. Deposit fees have increased each quarter this year. We experienced another quarter of higher mortgage fee income in the third quarter and we expect the trend to continue through the fourth quarter, indicated by strong loss volumes during the past few weeks.

謝謝柯克，大家下午好。第三季非利息收入再次表現良好。今年每季存款費用都有所增加。我們在第三季度經歷了抵押貸款費用收入又一個季度的增長，我們預計這一趨勢將持續到第四季度，過去幾週的強勁損失量表明了這一趨勢。

We see most of our originations in secondary market loans and in purchase money loans. Credit card net revenue decreased modestly in the quarter, but we expect it to return to more normal levels in the fourth quarter. On noninterest expenses, as usual, we controlled expenses and the efficiency ratio fell below 37%.

我們的大部分起源於二級市場貸款和購屋貸款。本季信用卡淨收入小幅下降，但我們預計第四季將恢復到更正常的水平。在非利息支出方面，我們一如既往地控制了支出，效率比率降至37%以下。

As a reminder, during the second-quarter call, we discussed implementing a new accounting treatment for qualifying tax credits. This resulted in some noise in noninterest expenses and income tax. We said our core run rate for expenses for the second quarter was $44.8 million. The third quarter was 1.8% above the core second-quarter amount, a little more than we expected, but it did include some onetime EDP costs to exit contracts for services we no longer need.

提醒一下，在第二季的電話會議中，我們討論了對合格稅收抵免實施新的會計處理方法。這導致非利息支出和所得稅產生一些噪音。我們表示，第二季的核心費用運作率為 4,480 萬美元。第三季比第二季核心金額高出 1.8%，略高於我們的預期，但其中確實包括一些一次性 EDP 成本，用於退出我們不再需要的服務合約。

Also, salary and benefit expenses increased modestly due to our new Auburn, Alabama staff being in place for a full quarter. As Kirk just mentioned, we did realize some income tax benefits during the quarter. Our second-quarter rate was higher due to the implementation of the new accounting for tax credits. Our rate for the first half of 2024 was 19.7% compared to the rate in the third quarter of 17.2%. This rate differential was primarily due to positive adjustments related to filing our 2023 tax returns and adjustments related to some tax credit investments. We believe our tax rate for the fourth quarter will be around 19%.

此外，由於我們阿拉巴馬州奧本市的新員工在整個季度就職，薪資和福利費用略有增加。正如柯克剛才提到的，我們在本季確實實現了一些所得稅優惠。由於實施新的稅收抵免會計制度，我們的第二季稅率較高。2024 年上半年的成長率為 19.7%，而第三季的成長率為 17.2%。這種稅率差異主要是由於與提交 2023 年報稅表相關的積極調整以及與某些稅收抵免投資相關的調整。我們認為第四季的稅率將在 19% 左右。

And with that, I'll turn the call back over to Tom.

然後，我會將電話轉回給湯姆。

Thank you, Ed. I will comment one thing. We have $45 million a quarter of core expenses. I was thinking about 19 years ago when we opened the bank with 19 employees. And if you told me 19 years later that we would have $45 million of expenses in the quarter, I would not have believe you. I knew the bank could grow, but I didn't know we would grow to extent that -- it's hard for me to think now that we could operate a bank with 19 employees with all it seems like we need now to operate.

謝謝你，艾德。我要評論一件事。我們每季的核心支出為 4500 萬美元。我回想起 19 年前，我們開了一家只有 19 位員工的銀行。如果 19 年後你告訴我，我們本季的支出將達到 4500 萬美元，我不會相信你。我知道銀行可以發展，但我不知道我們會發展到這種程度——我現在很難想像我們可以經營一家擁有 19 名員工的銀行，並提供我們現在運作所需的一切。

So in any event, we're very pleased with the quarter. I do want to thank Kirk for his contributions. He joined us in June of last year. He came at sort of a critical time because we had some back office turnover and he did a fantastic job of helping get all that fixed, get the back office in order. And he did a great job with that. And then of course, when both folks retired, he took over as CFO, who's done a fantastic job and it has helped us professionalize the bank in many cases. His view coming from a larger bank has been very helpful to us and helping -- especially from a standpoint of making sure we're ready for growth in the future. So we want to thank Kirk. Kirk, we appreciate the contributions and wish you well.

因此，無論如何，我們對本季感到非常滿意。我確實要感謝柯克的貢獻。他於去年六月加入我們。他是在一個關鍵時刻來的，因為我們有一些後台人員流動，他做得非常出色，幫助解決了所有問題，讓後台工作井然有序。他在這方面做得很好。當然，當兩人退休後，他接任財務官，他的工作非常出色，在許多情況下幫助我們實現了銀行的專業化。他來自一家較大銀行的觀點對我們非常有幫助，特別是從確保我們為未來成長做好準備的角度來看。所以我們要感謝柯克。柯克，我們感謝您的貢獻並祝您一切順利。

And we'll be ready to take any questions you have now. Thank you.

我們將隨時準備回答您提出的任何問題。謝謝。

(Operator Instructions) Steve Moss, Raymond James.

（操作員說明）史蒂夫·莫斯、雷蒙德·詹姆斯。

Good afternoon. Tom, just want to go a little further on the loan pipeline here. You talked about the pipeline being very strong. Just kind of curious, do you think like for the fourth quarter, we'll probably see something similar to what we saw in the second quarter? And just kind of like how you're thinking about maybe the early look into 2025?

午安.湯姆，只是想在貸款管道上更進一步。您談到管道非常強大。只是有點好奇，您認為第四季度我們可能會看到與第二季度類似的情況嗎？就像您如何看待 2025 年的早期展望？

Steve, it's really -- you're asking a hard question. If I told you I thought it was going to be as good as the second quarter, the second quarter was outstanding, and that was probably more than I would hope for in the fourth quarter, though, is possible. You tend to get a lot of closings. Companies buy and sell in the fourth quarter, assets buy and sell.

史蒂夫，你確實在問一個很難回答的問題。如果我告訴你我認為它會和第二季度一樣好，那麼第二季度非常出色，而且這可能比我在第四季度所希望的還要好，不過，這是可能的。你往往會遇到很多關閉。第四季公司買賣、資產買賣。

Like I said, we did see a lot of asset sales. I think prior to the election in the third quarter, we saw some people probably concerned about tax rates going up, and sold some companies and businesses. So I think we're -- I just think the opportunity is always there in the fourth quarter because of the year end. We've always had a good fourth quarter. So I expect to have at least a decent closing amount. And the pipeline is there.

正如我所說，我們確實看到了大量資產出售。我認為在第三季大選之前，我們看到一些人可能擔心稅率上升，並出售了一些公司和業務。所以我認為我們——我只是認為由於年底，第四季度機會總是存在的。我們第四季的表現一直都很好。所以我預計至少會有一個不錯的成交金額。管道就在那裡。

So we've got -- like everybody, we've got some payoffs coming too, Steve, when people go in to permanent market. And in a few cases, we're trying to hold on to some loans that could go to Fannie and Freddie, and we're trying to talk to them about staying with us for a bit longer on some of those projects.

所以，像每個人一樣，當人們進入永久市場時，史蒂夫，我們也會得到一些回報。在某些情況下，我們試圖保留一些可能提供給房利美和房地美的貸款，並且我們試圖與他們討論在其中一些項目上與我們合作的時間更長一些。

So I'm not giving you a very good answer, I know, Steve.

所以我不會給你一個很好的答案，我知道，史蒂夫。

That's okay, Tom. I get it. And then just in terms of just loan pricing here, kind of curious as to what you guys are seeing for the rate on new loans. Obviously, we've had volatility in the five-year treasury here. So curious as to how you're thinking there.

沒關係，湯姆。我得到它。然後就貸款定價而言，我有點好奇你們看到的新貸款利率是多少。顯然，我們的五年期公債出現了波動。很好奇你在那裡的想法。

Well, it's consistent with where we've been in prior quarters. I would think it's close to -- right at 8%.

嗯，這與我們前幾季的情況一致。我認為這個比例接近——8%。

It came down a little bit this quarter, but that's because the mix has changed a little bit. We've done probably a little more fixed this quarter, I think, than -- yes. Sorry, just looking. But it's held up really well. I don't see a pricing issue going forward. Obviously, I'm saying that we didn't have a whole lot of new loan volume this quarter, but the pricing has been holding up very well.

本季略有下降，但那是因為組合發生了一些變化。我認為，本季我們所做的修復工作可能比——是的。抱歉，只是看看。但它確實保持得很好。我認為未來不會有定價問題。顯然，我是說本季我們沒有大量新貸款量，但定價一直保持得很好。

Again, remember, we're happy that we had $126 million or so of loans pay off. That was a low fixed rate amount. So that's a win for the shareholders there.

再次請記住，我們很高興我們還清了大約 1.26 億美元的貸款。這是一個較低的固定利率金額。所以這對股東來說是一場勝利。

Yes. I mean, that's a great point. Obviously, we benefited in the third quarter from the great loan growth in the second quarter. But even more than that was the repricing, the maturities and the cash flows of the fixed rate. I mean, for us to go up $9 million in the quarter, we've got some really good stuff going on.

是的。我的意思是，這是一個很好的觀點。顯然，我們第三季受益於第二季貸款的大幅成長。但更重要的是固定利率的重新定價、期限和現金流。我的意思是，為了讓我們在本季增加 900 萬美元，我們已經做了一些非常好的事情。

Right. Okay. Definitely hear you on that. And then just in terms of the -- Tom, you mentioned a large borrower you placed on special mention. Just kind of curious how large is that borrower and like what's the total criticized and classified loans for you guys?

正確的。好的。一定會聽到你的聲音。然後，就湯姆而言，您提到了您特別提及的一個大借款人。只是有點好奇那個借款人有多大，你們受到批評和分類的貸款總數是多少？

Go ahead, Henry.

繼續吧，亨利。

So the total relationship for that borrower is currently, as Tom mentioned, we had a $10 million payoff after quarter end. The relationship size for them is $97 million, and it's all granular. It's divided up now into eight different projects. So the numbers on individual projects are much smaller, $6 million, $10 million, large one being $20 million.

因此，正如 Tom 所提到的，目前該借款人的總體關係是，我們在季度末後獲得了 1000 萬美元的還款。他們的關係規模為 9700 萬美元，而且都是細粒度的。它現在分為八個不同的項目。因此，單一項目的數字要小得多，600 萬美元、1000 萬美元，較大的項目為 2000 萬美元。

Yes, they're special mention, not substandard. That's correct.

是的，它們是特別提及的，而不是不合格的。這是正確的。

Right. And just kind of curious on -- beyond that one, is there any significant change to your total special mention and substandards?

正確的。只是有點好奇 ​​- 除此之外，您的特別提及和不合格的總數是否有任何重大變化？

No, that was the biggest [mention].

不，這是最重要的[提及]。

Stephen Scouten, Piper Sandler.

史蒂芬·斯考頓，派珀·桑德勒。

Hi, thanks. Good afternoon, everyone. I guess just sticking to those special mention increase there. I assume at this time, you don't really expect any significant loss content there given the movement in the reserve, and keeping that kind of flat quarter over quarter. Is that fair to say based on how you're thinking about and looking at those credits?

你好，謝謝。大家下午好。我想只是堅持那些特別提及的增加。我認為，鑑於儲備金的變動，並且季度與季度之間保持持平，您實際上並不期望出現任何重大損失。根據您如何思考和看待這些學分，這樣說公平嗎？

Yes. There's no reserve on any of those. They only have one project, as I mentioned. As I said in my remarks, they only have one project that is a problem. And it's a problem because they had construction delays for a year with the city. It's a city in Alabama, North Alabama, an excellent city, but they had problems with the city.

是的。這些都沒有任何保留。正如我所提到的，他們只有一個項目。正如我在發言中所說，他們只有一個項目存在問題。這是一個問題，因為他們與該市的建設延誤了一年。這是阿拉巴馬州北阿拉巴馬州的一個城市，一個優秀的城市，但他們在這座城市上遇到了問題。

So they've got that straightened out, and they'll get back relevant with that project. And again, this is workforce housing rehab. So we like the asset class and we like the borrower. We think they're just -- they just had some short term -- because of the hurricane, they had some payment delays when we felt we needed to downgrade it as abundance of caution.

所以他們已經解決了這個問題，並且他們將重新與該專案相關。再說一遍，這是勞動力住房修復。所以我們喜歡這個資產類別，也喜歡借款人。我們認為他們只是——他們只是有一些短期的——因為颶風，當我們認為我們需要出於謹慎考慮而降低其評級時，他們有一些付款延遲。

Yes. Yes. Sounds like a lot of conservatism, so that's great to hear. Perfect. On the loan growth trends, I know you mentioned four new hires in the quarter. Are those in Auburn, Memphis, the newer markets? Or is there any particular focus on expansion in any other markets to drive that incremental loan growth or kind of a resumption of the loan growth next quarter?

是的。是的。聽起來很保守，所以很高興聽到這一點。完美的。關於貸款成長趨勢，我知道您提到了本季的四名新員工。奧本、孟菲斯是較新的市場嗎？或者是否特別關注其他市場的擴張，以推動貸款增量成長或下季貸款成長的恢復？

I think one of those or two of those were in Auburn, Opelika market, and the other two, I forget, maybe one in Nashville and one in Florida. So we're continuing to hire. And we expect the contribution from the new hires were many for us this year.

我想其中一兩個是在奧本的歐佩萊卡市場，另外兩個，我忘了，可能一個在納許維爾，一個在佛羅裡達。所以我們會繼續招募。我們預計今年新員工將為我們做出許多貢獻。

We hired a large number of new people, and it takes them about six months to start making a contribution. So we expect to start seeing that. We just now -- we're seeing a great contribution to our team we hired in Montgomery last year. We hired a four-person team from another bank last year. So we're just now seeing the contribution from that team.

我們僱用了大量新員工，他們大約需要六個月的時間才能開始做出貢獻。所以我們預計會開始看到這一點。我們現在看到我們去年在蒙哥馬利僱用的團隊做出了巨大貢獻。去年我們從另一家銀行聘請了一個四人團隊。所以我們現在才看到該團隊的貢獻。

So I don't say just now seeing it, but it takes a while to start moving things. And so we're optimistic that we've got with all the new producers we have. Like I said, they're pretty large teams in both Memphis and the Auburn-Opelika market. So we feel good about the future there.

所以我不是說現在才看到，而是需要一段時間才能開始移動東西。因此，我們對我們擁有的所有新生產商感到樂觀。就像我說的，他們在孟菲斯和奧本-歐佩萊卡市場都是相當大的球隊。所以我們對那裡的未來感覺很好。

Got it. That's helpful, Tom. And then I guess, maybe last thing for me. The loan yields, I know you touched on those briefly, did move up much more significantly this quarter. Was there anything kind of onetime in nature or unusual about that, especially with the $126 million in early payoffs you mentioned? I'm just kind of wondering if there's prepayment penalties or anything in that jump in loan yields that might kind of reverse back out next quarter in any way.

知道了。這很有幫助，湯姆。然後我想，這對我來說可能是最後一件事。我知道您簡短地談到了貸款收益率，本季貸款收益率確實大幅上升。這其中有什麼一次性的或不尋常的事情嗎，尤其是你提到的 1.26 億美元的早期回報？我只是想知道是否有提前還款罰款或貸款收益率上升的任何情況，這些情況可能會在下個季度以任何方式逆轉。

There's nothing that I would say was a onetime. I mean, this is the recurring theme. We've been signaling for a long time. We expected the velocity to pick up on the margin increase, and I think you saw it this quarter. Now remember, the second-quarter loan growth helped a lot, too.

我想說沒有什麼是一次性的。我的意思是，這是一個反覆出現的主題。我們已經發出信號很久了。我們預計速度會隨著利潤的增加而加快，我想您在本季就看到了這一點。現在請記住，第二季貸款成長也起到了很大作用。

It came later in the quarter, sure.

當然，它是在本季晚些時候出現的。

(multiple speakers) on deposit pricing and I think that's -- we finally are seeing that, Stephen, I think, in terms of -- of course, everybody says the other person is paying up too much. I'm painfully aware of that. So I say that with all humility of not trying to blame everybody else. We're doing everything right; they're doing everything wrong. I'm not saying that, but we are seeing more rational pricing industry-wide.

（多位發言者）關於存款定價，我認為，史蒂芬，我認為，我們終於看到了這一點，當然，每個人都說對方支付了太多費用。我痛苦地意識到這一點。所以我很謙虛地這麼說，不想怪別人。我們所做的一切都是正確的；他們所做的一切都是錯的。我不是這麼說的，但我們看到整個行業的定價更加合理。

Yes. And maybe just touching on that one last question for me. What are you guys seeing on new pricing for CDs currently?

是的。也許只是觸及我的最後一個問題。你們對目前 CD 的新定價有何看法？

Been down pretty quickly. I mean, it seems like if I'm making this up 45 days ago, people were paying 5% on a six months and now they're paying 4.25%. And I think that's sort of the trend we're seeing right now is they're moving down pretty quickly. They're below treasury a bit in terms of CD yields.

下降得很快。我的意思是，如果我編造的話，45 天前，人們在六個月內支付 5%，而現在他們支付 4.25%。我認為我們現在看到的趨勢是它們正在快速下降。就定期存款收益率而言，它們略低於國債。

Of course you still have some of the small community banks that are underperforming outliers, as you might imagine. But for major operators, we're seeing much more rational CD price. And then we don't have a large CD. I think in the fourth quarter, we have $300 million plus in CDs maturing at a rate in the high 4s. So [4.80%] at [4.90%] yield, [4.85%] to be precise. So there's room there to pick up here and there; it adds up to real money after a while.

當然，正如您可能想像的那樣，仍然有一些表現不佳的小型社區銀行。但對於主要業者來說，我們看到 CD 價格更加合理。然後我們就沒有大CD了。我認為在第四季度，我們有超過 3 億美元的 CD 到期，利率在 4 左右。因此，[4.80%] 的收益率為 [4.90%]，準確地說是 [4.85%]。所以這裡和那裡都有空間可以拾取；一段時間後，它就會變成真正的錢。

David Bishop, Hovde Group.

大衛畢肖普，霍夫德集團。

Good evening, gentlemen. Tom, you noted in the preamble some build and short-term liquidity cash maybe drove the margin down a little bit. Just curious what sort of drove that increase. Was that related to maybe customer flows? Just curious what drove that increase in cash.

晚上好，先生們。湯姆，您在序言中指出，一些建設和短期流動性現金可能會導致利潤率略有下降。只是好奇是什麼推動了這種成長。這可能與客戶流量有關嗎？只是好奇是什麼推動了現金的增加。

So I'll jump in here for a second. So the cash really didn't did go up that much during the quarter. It did during the quarter and came back out with one municipal outflow. What I was saying was if you look at the average balance of cash in the second quarter and the third quarter, was about $600 million higher in the third quarter with about the same loans at the end of the quarter.

所以我會在這裡跳一下。所以本季現金確實沒有增加那麼多。本季確實如此，並隨著市政資金流出而回歸。我的意思是，如果你看看第二季和第三季的平均現金餘額，第三季的平均現金餘額增加了約 6 億美元，而季末的貸款大致相同。

So the cash, the calculation, the NIM calculation had a lot more cash at kind of a breakeven on it. It doesn't hurt the NIM dollars, as you can see, based on the run-up in it. But the percentage, if you kind of normalize for that extra cash, it would have been even higher. Does that make sense?

所以現金，計算，淨利差計算有更多的現金，有點損益兩平。正如你所看到的，根據其中的上漲，它並沒有損害 NIM 美元。但如果你對額外的現金進行正常化，這個百分比還會更高。這樣有道理嗎？

Yes. Then maybe just talk about puts and takes there from a funding perspective, should we see that sort of come down as you expect to fund loans this quarter?

是的。然後，也許只是從融資的角度討論看跌期權和看跌期權，我們是否應該看到這種情況下降，正如您預計本季度為貸款提供資金一樣？

Yes. And that's one reason why it was higher in the third quarter versus the second. Tom has always run the bank where he tries to build the liquidity ahead of time. And that's why you don't have FHLB advances, and that's why you don't have broker deposits.

是的。這就是為什麼第三季比第二季更高的原因之一。湯姆一直經營銀行，試圖提前建立流動性。這就是為什麼你沒有 FHLB 預付款，這就是為什麼你沒有經紀人存款。

The deposits that flowed out as a high rate municipal deposit days. That's why we weren't too terribly upset about it. It's not accretive to income at all. It's a slight negative. So it's hard to -- we think it'll -- we may not take it all back if and when it's offered back to us, too.

流出的存款為高利率市政存款天數。這就是為什麼我們對此並沒有感到太沮喪。它根本不增加收入。這是一個輕微的負面影響。因此，如果我們也將其返還給我們，我們可能不會將其全部收回，我們認為這很困難。

Got it. Maybe outlook for core operating expenses from here?

知道了。也許從這裡可以看出核心營運支出的前景？

Yes, Dave. This is Ed Woodie. We said in the second quarter, we're operating about $44.8 million. We think that's probably still a realistic. We may have some adjustments in our annual incentive accrual for the fourth quarter. So we think that number is still realistic. Certainly, no more than $45 million.

是的，戴夫。這是艾德·伍迪。我們說過，第二季我們的營業額約為 4,480 萬美元。我們認為這可能仍然是現實的。我們可能會對第四季度的年度激勵計劃進行一些調整。所以我們認為這個數字仍然是現實的。當然，不超過4500萬美元。

Got it. And my line broke up a little bit, Tom, in the beginning, you said the low-yielding loans paid off. What was that average rate that was paid off?

知道了。我的線路有點中斷，湯姆，一開始，你說低收益貸款還清了。償還的平均利率是多少？

4.89%.

4.89%。

If there are no further questions, that will close the call. Thank you all.

如果沒有其他問題，通話將結束。謝謝大家。

Thank you, everybody.

謝謝大家。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。