Trustmark Corp (TRMK) 2025 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's first quarter earnings conference call. (Operator Instructions) As a reminder, this call is being recorded. It is now my pleasure to introduce Mr. Joey Rein, Director of Corporate Strategy at Trustmark. Please go ahead.

女士們、先生們，早安，歡迎參加 Trustmark Corporation 第一季財報電話會議。（操作員指示）提醒一下，此通話正在被錄音。現在我很高興介紹 Trustmark 企業策略總監 Joey Rein 先生。請繼續。

Good morning. I'd like to remind everyone that our first quarter earnings release and the slide presentation that will be discussed on our call this morning are available on the Investor Relations section of our website at trustmark.com.

早安.我想提醒大家，我們的第一季財報和今天早上電話會議上討論的投影片可以在我們網站 trustmark.com 的投資者關係部分找到。

During our call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and we we'd like to caution you that these forward-looking statements may differ materially from actual results due to a number of risks and uncertainties, which are outlined in our earnings release and our other filings with the Securities and Exchange Commission. At this time, I'd like to introduce Duane Dewey, President and CEO of Trustmark.

在電話會議期間，管理層可能會根據 1995 年《私人證券訴訟改革法案》做出前瞻性陳述，我們想提醒您，由於一些風險和不確定因素，這些前瞻性陳述可能與實際結果存在重大差異，這些風險和不確定因素已在我們的收益報告和向美國證券交易委員會提交的其他文件中概述。現在，我想介紹一下 Trustmark 總裁兼執行長 Duane Dewey。

Thank you, Joey, and good morning, everyone. Thank you for joining us this morning. With me are Tom Owens, our Chief Financial Officer; Barry Harvey, our Chief Credit and Operations Officer; and Tom Chambers, our Chief Accounting Officer.

謝謝你，喬伊，大家早安。感謝您今天上午加入我們。和我一起的還有我們的財務長湯姆歐文斯 (Tom Owens)、我們的首席信貸和營運官巴里哈維 (Barry Harvey) 以及我們的首席會計官湯姆錢伯斯 (Tom Chambers)。

Trustmark reported solid performance in the first quarter building upon our momentum from 2024. As you may have seen, we experienced continued loan growth, stable credit quality, expanded fee income, and lower non-interest expense in the first quarter. I would like to note that, we are adjusting our presentation format this quarter.

Trustmark 報告稱，憑藉 2024 年的發展勢頭，第一季業績表現穩健。正如您所看到的，第一季我們的貸款持續成長、信貸品質穩定、費用收入增加、非利息支出下降。我想指出的是，我們正在調整本季的演示格式。

I will first provide a summary of our performance, discuss our forward guidance, and then move to questions. This will reduce the time spent on our comments and allow more time for your questions. We understand this is a popular day in the earnings release cycle, and we want to allow as much time as possible to address questions you may have after reviewing our release and related deck.

我將首先總結我們的業績，討論我們的前瞻性指引，然後回答問題。這將減少我們花在評論上的時間，並有更多的時間來回答您的問題。我們了解這是收益發布週期中的一個重要日子，我們希望盡可能多地留出時間來解答您在查看我們的發布和相關資料後可能遇到的問題。

Now turning to slide 3, the financial highlights slide. Please note, all information presented here is from continuing operations. From the balance sheet perspective, loans held for investment increased $151 million or 1.2% linked quarter. Our growth was diversified and reflected increases in CRE, other commercial loans and leases, and one to four family mortgage loans.

現在翻到投影片 3，即財務亮點幻燈片。請注意，此處提供的所有資訊均來自持續經營。從資產負債表來看，投資貸款季增 1.51 億美元，增幅 1.2%。我們的成長是多元化的，反映了 CRE、其他商業貸款和租賃以及一至四戶家庭抵押貸款的成長。

Our deposit base remains stable. During the quarter, our cost of total deposits decreased 15 basis points to 1.83%. Trustmark reported net income in the first quarter of $53.6 million, representing fully diluted EPS of $0.88 per share. This level of earnings resulted in a return on average assets of 1.19% and a return on average tangible equity of 13.13%.

我們的存款基礎保持穩定。本季度，我們的總存款成本下降了 15 個基點，至 1.83%。Trustmark 公佈第一季淨收入為 5,360 萬美元，相當於每股完全稀釋每股收益 0.88 美元。此收益水準導致平均資產回報率為 1.19%，平均有形權益回報率為 13.13%。

This performance reflects solid net interest income of $155 million, which produced a net interest margin of 3.75%. Non-interest income totaled approximately $43 million, up 4% linked quarter as growth in mortgage banking, wealth management, and other income was offset in part by seasonal declines in bank card and other fees and service charges on deposit accounts.

這一業績反映了 1.55 億美元的穩健淨利息收入，產生了 3.75% 的淨利差。非利息收入總計約為 4,300 萬美元，環比增長 4%，因為抵押銀行、財富管理和其他收入的增長被銀行卡和存款帳戶的其他費用及服務費的季節性下降部分抵消。

We are very pleased with our continued expense management efforts. Non-interest expense declined $419,000 linked quarter, which follows a full year decline in 2024. Salaries and employee benefits, service and fees, and other expenses were all lower linked quarter. Credit quality remained stable.

我們對持續的費用管理工作感到非常滿意。非利息支出較上月下降 419,000 美元，而 2024 年全年則出現下降。薪資和員工福利、服務和費用以及其他費用均比上一季下降。信貸品質保持穩定。

Net charge-offs totaled $1.4 million representing 4 basis points of average loans in the first quarter. The net provision for credit losses was $5.3 million and the allowance for credit losses expanded 4 basis points to 1.2% of loans held for investment, again a very solid credit profile.

淨沖銷總額為 140 萬美元，佔第一季平均貸款的 4 個基點。信貸損失淨撥備為 530 萬美元，信貸損失準備金擴大 4 個基點，至投資貸款的 1.2%，這再次顯示出非常穩健的信貸狀況。

From a capital management perspective, each of our capital ratios increased during the quarter. The CET1 ratio expanded to 11.63%, while our risk-based capital ratio increased 13 basis points to 14.1%. During the quarter, we've repurchased $15 million of Trustmark common stock and a remaining repurchase authority of $85 million for the remainder of this year. This program continues to be subject to market conditions and management discretion.

從資本管理的角度來看，本季我們各項資本比率均有所增加。普通股權一級資本適足率擴大至 11.63%，風險資本適足率提高 13 個基點至 14.1%。在本季度，我們回購了價值 1500 萬美元的 Trustmark 普通股，並擁有今年剩餘時間 8,500 萬美元的回購權。該計劃繼續受市場條件和管理層判斷的影響。

Tangible book value per share was $27.78 at March 31, up 4.1% during the quarter and 26.1% year over year. The Board also declared a quarterly cash dividend of $0.24 per share payable June 15th to shareholders of record on June 1.

截至 3 月 31 日，每股有形帳面價值為 27.78 美元，本季上漲 4.1%，較去年同期成長 26.1%。董事會也宣布，將於 6 月 15 日向 6 月 1 日登記在冊的股東派發每股 0.24 美元的季度現金股利。

Now let's focus on our forward-looking guidance for the year, which is on page 15 of the deck. As you can see, we are affirming our previously provided full year 2025 expectations across the Board. Although we are intently monitoring the impact of tariffs and other administrative policies on our customer base, interest rates ,and credit related issues, we feel it is early in the process and we have not yet seen an immediate impact.

現在讓我們專注在今年的前瞻性指引，它位於第 15 頁。如您所見，我們全面確認了我們先前提供的 2025 年全年預期。儘管我們正在密切關注關稅和其他行政政策對我們的客戶群、利率和信貸相關問題的影響，但我們認為這一過程仍處於早期階段，我們尚未看到直接影響。

We expect loans held for investments to increase low single-digits for the full year 2025 and deposits excluding broker deposits to increase low single-digits as well. Securities balances are expected to remain stable as we continue to reinvest cash flows. We anticipate the net interest margin will be in the range of 3.75% to 3.85% for the full year, while we expect net interest income to increase mid to high single-digits in 2025.

我們預計，2025 年全年投資貸款將以低個位數成長，不包括經紀人存款的存款也將以低個位數成長。隨著我們繼續對現金流進行再投資，證券餘額預計將保持穩定。我們預計全年淨利差將在 3.75% 至 3.85% 之間，而我們預計 2025 年淨利息收入將實現中高個位數成長。

From a credit perspective, the provision for credit losses including unfunded commitments is expected to remain stable. Non-interest income from adjusted continuing operations for the full year 2025 is expected to increase mid-single digits, while non-interest expense from adjusted continuing operations is expected to increase mid-single digits as well.

從信貸角度來看，包括未撥付承諾在內的信貸損失準備金預計將保持穩定。預計 2025 年全年調整後持續經營業務的非利息收入將實現中等個位數成長，同時預期調整後持續經營業務的非利息支出也將實現中等個位數成長。

We will continue our disciplined approach to capital deployment with a preference for organic loan growth, potential market expansion, M&A or other general corporate purposes depending on market conditions. As noted earlier, we do have remaining availability in our Board authorized share repurchase program, that we will consider opportunistically. So with that, I would like to now open the floor up to questions.

我們將繼續採取嚴謹的資本配置方式，根據市場狀況優先考慮有機貸款成長、潛在市場擴張、併購或其他一般公司用途。如前所述，董事會授權的股票回購計畫中確實還有剩餘，我們會適時考慮。因此，我現在願意開始回答大家的提問。

(Operator Instructions) Will Jones, KBW.

（操作員指示）威爾瓊斯，KBW。

I wanted to start just with loan growth. Either Barry or Duane, if you could just maybe walk us through some of the growth trends you saw this quarter and how the paydown story kind of played out for the quarter? And then, just with respect to the growth guidance for the remainder of the year, obviously, a fairly volatile environment out there.

我只想從貸款成長開始。無論是 Barry 還是 Duane，您能否向我們介紹本季看到的一些成長趨勢，以及本季的還款情況如何？然後，就今年剩餘時間的成長預期而言，顯然外面的環境相當不穩定。

Duane, could you just give us a pulse for just boots on the ground, what you're hearing from clients? And anecdotally, just whether you've seen any change or definitive change in any client behavior just with regards to the tariffs and some of the uncertainty out there? That would be great. Thank you.

杜安，您能否向我們介紹一下實地情況，以及您從客戶那裡聽到了什麼？有趣的是，您是否看到客戶行為在關稅和一些不確定性方面發生任何變化或明確變化？那太好了。謝謝。

Will, this is Barry. I'll start and then I'm going to have Duane weigh in. I guess starting with the payoffs this quarter, as we've mentioned previously, while we do expect to have meaningful maturing CRE loans during 2025 as a result of the strong production in '21 and '22 that we experienced. We expect that to be more of a second half event than a first half event and that's kind of the way it played out.

威爾，這是巴里。我先開始，然後讓杜安稱重。我想從本季的收益開始，正如我們之前提到的，同時由於我們在 2021 年和 2022 年經歷的強勁生產，我們確實預計 2025 年將有大量到期的 CRE 貸款。我們預計這將是一場下半場的賽事，而不是上半場的賽事，而事情也確實如此。

We have done an extremely good job I believe of touching our customers, communicating with our customers, and making sure they're aware on projects that are performing that there is two one-year extension options available to them. Quite a few of them have indicated that, they intend to avail themselves of that option for a few reasons.

我認為我們在聯繫客戶、與客戶溝通以及確保他們了解正在進行的專案方面做得非常出色，並且有兩個一年的延期選項可供選擇。他們中相當一部分人表示，出於一些原因，他們打算利用這個選擇。

I think one is, as you mentioned the uncertainty that exists today regarding interest rates and the directions they may move and whether it's more advantageous for them to wait and pay the cost of carry for a year or so to see, if the interest rate environment may improve, and if it does take the opportunity to either sell the project at a better cap rate, potentially move it to the private market and lock-in a very attractive rate.

我認為，一個問題是，正如您所提到的，目前利率及其變動方向存在不確定性，以及等待並支付一年左右的持有成本是否更有利，看看利率環境是否會改善，如果它確實抓住機會以更好的資本化率出售項目，可能將其轉移到私人市場並鎖定一個非常有吸引力的利率。

So for all those reasons, the loan growth we saw in the first quarter was not unexpected from our perspective, and the payoff scenario, we think will continue to play itself out as the year moves along. But we have seen quite a bit of, as we forecast every quarter what we expect to see with our CRE book, which is $5.3 billion.

因此，基於所有這些原因，從我們的角度來看，第一季看到的貸款成長並不意外，而且我們認為，隨著時間的推移，回報情況將繼續顯現。但我們已經看到了相當多的金額，因為我們每季都預測了我們預期的 CRE 帳簿金額，即 53 億美元。

And based on that survey, as of 9/30 of last year, we saw quite a few of our customers who have maturing CRE credits in 2025, indicate they probably will avail themselves of that opportunity to push it out to '26. We saw that trend continue, and as of 12/31, and we were actually as we continue with that process of quarterly forecasting, we don't anticipate that trend changing and what we see coming out of our 3/31 survey work that we're currently doing now.

根據該調查，截至去年 9 月 30 日，我們發現有不少客戶的 CRE 信貸將於 2025 年到期，他們表示，他們可能會利用這個機會將其推遲到 2026 年。我們看到這種趨勢仍在繼續，截至 12 月 31 日，我們實際上仍在繼續進行季度預測過程，我們預計這種趨勢不會發生變化，而且我們目前正在進行的 3 月 31 日調查工作也表明了這一點。

So we're very pleased in that regard, but it has -- we are very focused on that. And then also focused on seeing, if there's not opportunities for us to move existing funded business that for one reason or another, we have an opportunity to compete for as well as continuing to ensure that the projects we have are performing as we expect them to in addressing any problems that may pop up.

所以我們對此感到非常高興，但我們非常關注這一點。然後還要重點關注，如果由於某種原因我們沒有機會轉移現有的資助業務，我們就有機會競爭，並繼續確保我們的專案能夠按照我們的預期運行，以解決可能出現的任何問題。

I'll speak just briefly to the issue regarding what we're seeing in the marketplace and Duane can add some color to that. I know, obviously, anytime you have disruption, there's going to be people who pause and whatever their plans were and don't move forward on those. Unfortunately, a lot of the growth that we have anticipate having in 2025 is going to come from existing CRE projects that are on the books, that are going to fund and that's going to happen regardless.

我將簡單談談我們在市場上看到的問題，杜安可以對此進行一些說明。我知道，顯然，任何時候出現混亂，就會有人停下來，不管他們的計畫是什麼，都不會繼續前進。不幸的是，我們預計 2025 年的大部分成長將來自現有的 CRE 項目，這些項目已經登記在冊，將獲得資金，而且無論如何這都會發生。

And then, as far as future projects on the CRE side, we've not really heard anything from our customers in terms of concerns about significant spends that they'll have on projects going forward that they probably call them to pause on wanting to move forward on the project. There's definitely the potential that the backing of the sponsors will not be as active on supporting those projects, as maybe they have previously until some of the disruption in the marketplace kind of settles down.

然後，就 CRE 方面的未來專案而言，我們還沒有真正聽到客戶對他們在未來專案上花費大量資金的擔憂，他們可能會要求他們暫停推進該專案。肯定存在這樣的可能性：在市場混亂局面平息之前，贊助商可能不會像以前那樣積極地支持這些項目。

But we do expect for those sponsors to come back in because we do expect for that return, they're seeing on these projects to be materially better than what they can find elsewhere in a risk-free environment, but a lot of that's going to depend upon interest rates. Duane, let me turn it to you now.

但我們確實希望這些贊助商能夠回歸，因為我們確實希望獲得回報，他們看到的這些項目將比他們在無風險環境中在其他地方找到的回報要好得多，但這在很大程度上取決於利率。杜安，現在讓我把話題轉向你。

Yeah. I will add, coming into the end of the quarter, first quarter and the end of the quarter, we -- I think our pipelines were as good or better than we've seen for a long time and that was pretty much across the board, C&I, CRE, equipment finance, et cetera, even some of our small business areas and so on across the board, what we were hearing from our officers as well as directly from customers, very solid pipelines, very solid plans, and so on.

是的。我要補充的是，進入本季度末，第一季度和本季度末，我們 - 我認為我們的渠道狀況與我們長期以來所見的一樣好或更好，而且幾乎涵蓋了所有領域，包括商業和工業、企業房地產、設備融資等等，甚至包括我們的一些小業務領域等等，我們從我們的官員以及直接從客戶那裡聽到的消息是，渠道非常穩健，計劃非常穩健，等等。

So that is still intact. Those pipelines are still very good. Post-April 2, post, the so-called Liberation Day, since April 2, we've done some polling across our business units and some direct interaction with customers as well. Probably, we are hearing for the first time, there's a lot of uncertainty out there. I may hold off for a bit. It may slow down a bit. Let me see how things work out here.

所以它仍然完好無損。這些管道仍然非常好。4月2日之後，也就是所謂的解放日，自4月2日以來，我們對業務部門進行了一些民意調查，並與客戶進行了一些直接互動。可能，我們是第一次聽說，外面有很多不確定性。我可能會推遲一段時間。它可能會慢一點。讓我看看這裡的情況如何。

So it hasn't directly hit the pipeline reports yet, but we could see some slowdown in some of that new origination volume that we were anticipating. But it's not yet dramatic and it's not yet fully baked into actuality, if you know what I am saying.

因此，它還沒有直接影響到管道報告，但我們可以看到，我們預期的一些新發起量有所放緩。但它還不引人注目，也還沒有完全成為現實，如果你明白我的意思。

So it's real early in the process and a couple of updates and a couple of positive days and rhetoric out of the media and the administration changes instantly. So we are seeing the volatility there. But haven't really -- and as we noted in our forecast moving forward, we're still affirming that low single-digits growth for the year.

所以現在還處於過程的早期階段，媒體發布了一些更新、幾天的積極消息和言論，政府立即做出了改變。所以我們看到了那裡的波動。但實際上並沒有——正如我們在未來的預測中所指出的，我們仍然確認今年的成長率將保持在低個位數。

Yeah. That's great. I really appreciate that thorough answer Duane on that. Maybe, Tom, just a quick one for you. I certainly appreciate the margin range you put out there, the 3.75% to 3.85%. We're kind of sitting at the low-end today.

是的。那太棒了。我真的很感謝 Duane 對此的詳細回答。也許，湯姆，這只是給你一個簡短的答案。我當然很欣賞您給出的保證金範圍，即 3.75% 至 3.85%。我們今天處於低端地位。

And I know you generally guide off of the forward curve. I was just hoping you could help us maybe sensitize that margin a bit. I know there's various thoughts and then considerations for how rates may ultimately play out this year, but if we do wind up in a scenario with a higher level of cuts, could you just help us walk through maybe what happens to the margin in that scenario?

我知道您通常會根據未來走勢來做出引導。我只是希望您能幫助我們稍微敏感一下這個差距。我知道對於今年利率最終如何發揮作用存在各種想法和考慮，但如果我們最終陷入更高幅度降息的局面，您能否幫助我們解釋一下在這種情況下利潤率會發生什麼變化？

Sure, Will, happy to. So several points I'd make there. First of all, with respect to the 1 basis point linked-quarter decline in net interest margin, we experienced a normal seasonal linked-quarter decline in loan fees, which was worth about 3 basis points of NIM.

當然，威爾，我很樂意。我想提出幾點。首先，對於淨利差較上季下降1個基點的情況，我們經歷了正常的季節性貸款費用較上季下降，相當於淨利差約3個基點。

And so on a normalized linked-quarter basis rather than a 1 basis point decline that would have been a 2 basis point increase, which is consistent with the guidance that we put out there and the commentary we have provided.

因此，以正常化的環比季度計算，不是下降 1 個基點，而是增加 2 個基點，這與我們發布的指導和我們提供的評論一致。

We continue to believe going forward that we will experience low single-digits linked quarter increases in net interest margin. And as we have discussed in the past, the primary driver there is the ongoing repricing of the fixed rate loan book and the HTM securities.

我們仍然相信，未來淨利差將實現低個位數的季度環比成長。正如我們過去所討論過的，主要驅動因素是固定利率貸款帳簿和 HTM 證券的持續重新定價。

With respect to your question about market implied forward interest rates, in our current forecast, we have three Fed rate cuts consistent with market implied forwards, one in June, one in September, and then one in December. Of course, the one in December is not so consequential to our '25 net interest margin.

關於您關於市場隱含遠期利率的問題，我們目前的預測是，聯準會將有三次與市場隱含遠期利率一致的降息，一次在六月，一次在九月，然後一次在十二月。當然，12 月的息差對於我們的 25 年淨利差來說並不是那麼重要。

I think our objectives there Will, and we're confident we can achieve it. If you look at, for example slide 9 on the deposit base and you look at the cumulative beta that we've driven through the first quarter of 39% and through the second quarter, we're forecasting 5 basis point linked quarter decline in deposit costs and a cumulative beta of 35%.

我認為我們的目標是可以實現的，而且我們有信心實現它。例如，如果您查看第 9 張投影片中的存款基數，並查看我們在第一季和第二季推動的 39% 的累積貝塔係數，我們預測存款成本將與季度下降 5 個基點，累計貝塔係數為 35%。

Our objective assuming that we do end up with and it's a big assumption, June and September rate cuts would be to continue to maintain that cumulative beta in the mid-30s, which would allow us to continue to have that low single-digits linked-quarter NIM accretion.

我們的目標是假設我們最終能夠實現（這是一個很大的假設），即 6 月和 9 月的降息將繼續將累積貝塔係數維持在 35 左右，這將使我們能夠繼續保持低個位數的環比季度 NIM 增長。

Okay. Tom, that's super helpful. So if I hear you right, really if we adjust for some of those seasonal decline on loan fees, margin really could have looked closer to 3.77%, 3.78%. And then just based on forward rates, you would still expect to see maybe a little bit grinding higher of that margin as we move to the balance of the year?

好的。湯姆，這非常有幫助。所以如果我沒聽錯的話，如果我們調整一些貸款費用的季節性下降，利潤率可能實際上更接近 3.77%、3.78%。那麼，僅基於遠期利率，隨著我們進入今年的平衡期，您是否仍預期該利潤率可能會略有上升？

Correct, Will. That's right.

正確，威爾。這是正確的。

Yeah. Okay. That's really helpful. Thanks guys and congrats for overcoming this CRE overhang.

是的。好的。這真的很有幫助。謝謝大家，恭喜你們克服了 CRE 難題。

Tim Mitchell, Raymond James.

提姆米切爾、雷蒙詹姆斯。

I want to start on credit, the NPA ratio and the reserve both were up linked to quarter, the increase in NPAs was modest. But just given the reserve build, is there anything you're seeing that's worth calling out or is that more so just a function of all the uncertainty out in the environment and maybe shifting some of your key factors and see some inputs and such, any color would be great?

我想從信貸開始，不良資產比率和準備金均與季度掛鉤，不良資產的增幅較小。但是，僅考慮到儲備的建立，您是否看到任何值得關注的事情，或者這是否僅僅是環境中​​所有不確定性的函數，並且可能會改變一些關鍵因素並查看一些輸入等，任何顏色都會很棒？

Sure. This is Barry. As it relates to the ACL and the uptick in coverage, our funded reserve provision was $8.1 million for the quarter and that resulted in and the net of that of course was $5.3 million. That drove up the coverage to the [$126 million] that we reported.

當然。這是巴里。由於它與 ACL 和覆蓋範圍的增加有關，我們本季的準備金撥備為 810 萬美元，其淨額當然為 530 萬美元。這使得保險金額上升至我們所報道的[1.26億美元]。

We did see a reduction in the unfunded commitments and that was probably the biggest part of what drove the release on the liability side. There was -- really, the quarter was pretty much as we expected. The loan growth of the $152 million that drove some of that provisioning. And then, we also had an uptick in the qualitative portion of our provision.

我們確實看到未撥付的承諾有所減少，這可能是推動負債方面釋放的最大因素。確實，本季的情況與我們預期的差不多。1.52億美元的貸款成長推動了部分撥備。然後，我們提供的服務的品質部分也有所提高。

A little bit of that was just the changing in risk ratings and then there was a little bit of that, where we were migrating to some of our own probability defaults, where historically we had used some third-party data or peer data, and we've accumulated enough information to move to our own probability defaults and leverage that and that drove off the qualitative portion of our provision a little bit.

其中有一點只是風險評級的變化，然後還有一點，我們正在遷移到我們自己的一些概率默認值，歷史上我們曾使用過一些第三方數據或同行數據，並且我們已經積累了足夠的信息來轉向我們自己的概率默認值並利用它，這在一定程度上減少了我們提供的定性部分。

But I think on the whole, the provision kind of came in where we expected it to. Obviously, the funded portion closer in line to maybe where the market saw it and then the unfunded release kind of brought us down a little bit below where the consensus of the analysts were.

但我認為，總體而言，這些規定已經達到了我們預期的水平。顯然，融資部分可能更接近市場預期，而未融資部分則略低於分析師的共識。

Great. Makes sense. And then on expenses, just given the decline this quarter, could you remind us of any impact, timing impacts from merit or any investments you're undertaking this year just as we think about that low single-digits growth outlook?

偉大的。有道理。然後關於費用，考慮到本季度的下降，當我們考慮低個位數成長前景時，您能否提醒我們任何影響，績效的時間影響或您今年進行的任何投資？

I'll start and Tom and Tom can add to it. But I mean, as you've heard over extended period of time here, we've had a pretty intense focus on expenses across the board, in all aspects. I think the first quarter, if you look at a small decline in the first quarter is directly related to salaries, benefits, slower hiring than originally anticipated, commissions, some of the commission categories, mortgage, et cetera, where production maybe was a little below expectations and so on.

我先開始，然後湯姆和湯姆可以補充。但我的意思是，正如你們長期以來所聽到的，我們一直非常關注各個方面的開支。我認為第一季的輕微下滑與工資、福利、招聘速度低於最初預期、佣金、部分佣金類別、抵押貸款等直接相關，其中產量可能略低於預期等等。

Those things all accumulate to lower salary and benefit totals. And then some other contractual things that we do third-party support and so on, we're limited in the first quarter.

所有這些因素累積起來，就會導致薪資和福利總額降低。然後，我們為第三方提供的一些其他合約支援等在第一季受到限制。

I think as we look out into the remainder of the year, we have some things planned, where we have announced previously, we have a core system conversion that will occur in the first part of 2026. So there are some related expenses there.

我認為，展望今年剩餘時間，我們已經計劃了一些事情，我們之前已經宣布過，我們將在 2026 年上半年進行核心系統轉換。所以這裡面有一些相關的費用。

There is, other just, I would say, normal expense increases across the board contractual increases and those sorts of things that all then total to a mid-single digit year, and our hope and effort is to control that and maybe beat that number, but that's kind of what we are thinking at this point. Tom or Tom, anything to add?

我想說的是，還有其他一些正常的費用增加，包括全面的合約增加和諸如此類的事情，所有這些加起來達到了中等個位數的水平，我們的希望和努力是控制這個數字，甚至可能超過這個數字，但這就是我們目前的想法。湯姆或湯姆，還有什麼要補充的嗎？

This is Tom Chambers. I just think that you have to remember that our merit increases are now coming at the beginning of the third quarter on salaries, that previously were over the first quarter, the latter part of the first quarter event. So we've got some backend expenses during the year that will be triggered that will get us to that right single-digit forecast.

我是湯姆錢伯斯。我只是認為你必須記住，我們的績效加薪現在是在第三季度初進行的，而之前是在第一季度，即第一季後半段進行的。因此，我們今年將有一些後端費用，這些費用將使我們得到正確的個位數預測。

Yeah. Thanks for the color. Absolutely. If I could sneak one last one in, just on the buybacks, which was nice to see you guys lean into this quarter. Is this a pace kind of that you would expect to continue with moving forward? And then just any other thoughts around capital? I know you mentioned potentially expanding in new markets and whatnot and organic growth remains a priority, but just any more color you could give overall would be awesome.

是的。謝謝你的顏色。絕對地。如果我可以偷偷地再說最後一個，那就關於回購，很高興看到你們在本季度有所投入。您是否希望繼續保持這種步伐？那麼對於資本還有其他想法嗎？我知道您提到了在新市場等方面的潛在擴張，有機成長仍然是優先事項，但如果您能提供更多細節，那就太好了。

Yeah, I'll start and, again, Tom can add to it. But as far as the pace, the market will dictate the pace and management discretion. I think loan growth and some other factors, there kind of contribute to our thought process. We do feel some opportunity to continue that buyback trend and probably would forecast fairly consistent quarter-to-quarter, but we'll see.

是的，我先開始，然後湯姆可以再補充。但就步伐而言，市場將決定步伐和管理判斷。我認為貸款成長和其他一些因素對我們的思考過程有所影響。我們確實感覺到有機會延續這種回購趨勢，並可能預測季度間回購情況會相當一致，但我們拭目以待。

So, in terms of other deployment of capital, we're focused on strategic growth initiatives in key markets, which we hope generate or continue to generate organic loan growth. We think we have some opportunities in some very high growth markets, Houston, Birmingham, Atlanta, Gulf Coast of Florida, and Alabama, and so on. So we've got some hiring plans there that we think can generate some organic growth.

因此，就其他資本配置而言，我們專注於關鍵市場的策略性成長計劃，我們希望這些計劃能夠產生或繼續產生有機貸款成長。我們認為我們在一些高成長市場中有一些機會，例如休士頓、伯明罕、亞特蘭大、佛羅裡達州墨西哥灣沿岸和阿拉巴馬州等等。因此，我們制定了一些招聘計劃，我們認為這些計劃可以帶來一些有機成長。

And I will say prior to the Liberation tariff announcement date, M&A was very much forefront in the industry. And I think, Will noted in his earlier question, our CRE adjustment, which we think along with improved balance sheet etcetera, put us in position for some M&A activity post-April 2, maybe a little slower, but we'll see how the year evolves and we very much be interested in continuing that thought process. So, those would be some comments relative to capital. Tom?

我想說的是，在解放關稅宣布日期之前，併購在行業中處於非常前沿。我認為，正如威爾在他之前的問題中提到的，我們的 CRE 調整，以及資產負債表的改善等，使我們在 4 月 2 日之後能夠開展一些併購活動，雖然速度可能會慢一些，但我們會觀察今年的情況如何發展，我們非常有興趣繼續這一思考過程。所以，這些是一些與資本相關的評論。湯姆？

Yeah. This is Tom Owens. The only thing I would add is that, we were very pleased obviously to continue to drive capital accretion during the quarter with solid loan growth of $152 million and with the deployment of $15 million via share repurchase. We had about nine basis points of accretion in CET1 in the quarter and anticipate that, we will continue to drive some continued accretion at about that pace.

是的。這是湯姆·歐文斯。我唯一想補充的是，我們非常高興本季繼續推動資本增值，貸款穩健成長 1.52 億美元，並透過股票回購部署 1,500 萬美元。本季度，我們的 CET1 成長了約 9 個基點，預計我們將繼續以大約這個速度推動持續成長。

And so, as Duane said, the share repurchase will be driven by a number of things including how the loan growth comes to pass over the remainder of the year, which could end up -- we could end up leaning somewhat more into share repurchase, deployment via share repurchase with less loan growth. We could end up pulling back a bit with more loan growth, but it's nice to be in a position to have that flexibility.

因此，正如杜安所說，股票回購將受到多種因素的驅動，包括今年剩餘時間內貸款成長如何進行，這最終可能導致——我們最終可能會更傾向於股票回購，並透過股票回購進行部署，而貸款成長較少。我們最終可能會因貸款成長而稍微退縮，但能夠擁有這種靈活性是件好事。

(Operator Instructions) Christopher Marinac, Janney Montgomery Scott.

（操作員指示）克里斯多福·馬裡納克、詹妮·蒙哥馬利·斯科特。

I want to drill back on the loan growth conversation. And I guess my curiosity is, if we're meeting the loan growth goal for this year, does that enable you to be incredibly sort of picky and selective on the loans you do? And does that therefore give you flexibility on credit costs and also provide more flexibility on deposits as well?

我想深入探討一下貸款成長的話題。我好奇的是，如果我們實現了今年的貸款成長目標，這是否能讓您對自己的貸款進行極其挑剔和選擇？那麼這是否會為您帶來信貸成本方面的靈活性以及存款方面的更大靈活性？

This is Barry. I'll address the loan portion and let Tom address the deposit aspect of it. I think as far as being selective, we wake up every day thinking we are selective on the deals that we do, not only from a credit, from a structure standpoint, probably what's changed a little bit is some of the -- depending on the industry, some of the deals have become more competitive from a pricing standpoint, whether it be the origination fee or whether it be the interest rate itself, they've been -- but that's kind of a hit and miss for us.

這是巴里。我將處理貸款部分，讓湯姆處理存款部分。我認為就選擇性而言，我們每天醒來都會思考，我們對所做的交易是有選擇性的，不僅從信貸、從結構的角度，可能發生的一點變化是一些 - 取決於行業，一些交易從定價的角度來看變得更具競爭力，無論是發起費還是利率本身 - 但這對我們來說是一種碰運氣的做法。

We see some deals that look just like they did back in back in really in the first part of all of '23 and the first part of '24 where they're very attractive both from a fee and interest rate standpoint. And we see other deals that are all of a sudden very competitive and obviously anything that's funded debt is very competitive. So we do see quite a few of our peers more active than they've been maybe a few years ago.

我們看到一些交易看起來就像 2023 年上半年和 2024 年上半年一樣，從費用和利率的角度來看，它們都非常有吸引力。我們看到其他交易突然變得非常具有競爭力，顯然任何以債務融資的交易都具有非常強的競爭力。因此，我們確實看到不少同業比幾年前更活躍。

But the credit quality itself, we're continuing to be selective on the deals, try to get the structure we need. And then obviously, the pricing is something that we have to give on that. We're willing to do so. But first and foremost, the credit structure has to be what we need in order to be able to move forward and continue to be selective. I do think that, the environment that we're in now, there's still opportunity, there's still deal flow, but there are more competitors today than there were a year ago looking at the same deals. Tom?

但就信貸品質本身而言，我們將繼續對交易進行篩選，努力獲得我們需要的結構。顯然，我們必須給出定價。我們願意這麼做。但首先，信貸結構必須是我們所需要的，以便能夠向前發展並繼續具有選擇性。我確實認為，在我們現在所處的環境中，仍然有機會，仍然有交易流，但今天有更多的競爭對手關注同樣的交易。湯姆？

So Chris, this is Tom. On your question about on the deposit side and flexibility there, I'd start by making the point we've been pleased with our ability to drive personal and commercial deposit balances of $394 million or 3.2% year on year.

克里斯，這是湯姆。關於您關於存款方面及其靈活性的問題，我首先要指出的是，我們很高興能夠推動個人和商業存款餘額達到 3.94 億美元，同比增長 3.2%。

And as you know, Chris, we have been really in a mode of optimizing, rationalizing our deposit costs. We're in an environment that remains competitive from a promotional perspective, and we have really not been leading into that at this point.

如你所知，克里斯，我們一直在優化和合理化我們的存款成本。從促銷角度來看，我們處在一個競爭激烈的環境中，但目前我們還沒有真正進入這個階段。

And so we have got some levers that we can pull here. We have continued to develop our digital capabilities, and we have continued to deepen relationships with depositors that we brought in beginning as early as the first quarter of 2023. And so we feel like we have really good flexibility there.

因此，我們在這裡可以利用一些槓桿。我們不斷發展我們的數位化能力，並不斷深化與儲戶的關係，這種關係早在 2023 年第一季就開始建立。因此，我們覺得我們在這方面具有很好的靈活性。

We even made some adjustments to our tactics mid-quarter in the first quarter that have been very encouraging for us. So we are very confident that we can calibrate on the deposit side cost effectively to support loan growth opportunities going forward.

我們甚至在第一季中期對我們的策略做了一些調整，這對我們來說非常令人鼓舞。因此，我們非常有信心，我們可以有效地調整存款方面的成本，以支持未來的貸款成長機會。

Great. That's helpful. Thank you both for that. Just a quick follow-up is just about the C&I utilization and does this environment kind of change behavior on C&I, do you think as the next few quarters unfold?

偉大的。這很有幫助。對此我向你們兩位表示感謝。簡單跟進一下關於 C&I 利用率的問題，您認為隨著接下來幾季的展開，這種環境是否會改變 C&I 的行為？

Christopher, this is Barry. It did not affect us this quarter. We were 36% utilization, which was what we were for the fourth quarter of last year, and that's pretty much in line with where we've been historically. That is something that we're monitoring to see.

克里斯托弗，這是巴里。本季它沒有對我們造成影響。我們的利用率為 36%，與去年第四季的使用率相同，與我們的歷史水準基本一致。這是我們正在監測的事情。

I think we'll have less impact there than possibly new projects moving forward in the environment we're in now, until we get a little more clarity going forward. But from what we see so far, we've not seen a change in utilization of our revolving lines of credit.

我認為，在我們對未來發展有更清晰的認識之前，我們在那裡的影響力可能比在當前環境下推進的新項目要小。但從目前的情況來看，我們的循環信用額度利用率並未改變。

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

我們的問答環節到此結束。現在我想將會議交還給 Duane Dewey 並請他做最後發言。

Great. Thank you. Thank you again for joining us today. We look forward to catching up again at the end of the second quarter, and hope that everybody has a great week. Thank you.

偉大的。謝謝。再次感謝您今天加入我們。我們期待在第二季末再次相聚，並希望大家度過愉快的一周。謝謝。

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

電話會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。