Valley National Bancorp (VLY) 2024 Q1 法說會逐字稿

Welcome to the Valley National Bancorp earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

歡迎參加 Valley National Bancorp 財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Travis Lan. Please go ahead.

現在我想將會議交給今天的第一位發言人 Travis Lan。請繼續。

Good morning, and welcome to Valley's first-quarter 2024 earnings conference call. Presenting on behalf of Valley today are CEO, Ira Robbins; President, Tom Iadanza; and Chief Financial Officer, Mike Hagedorn. Before we begin, I would like to make everyone aware that our quarterly earnings release and supporting documents can be found on our company website at valley.com.

早上好，歡迎參加 Valley 2024 年第一季財報電話會議。今天代表 Valley 發言的是執行長 Ira Robbins；主席：湯姆·伊丹扎；和首席財務官邁克·哈格多恩。在開始之前，我想讓大家知道，我們的季度收益發布和支持文件可以在我們公司的網站 Valley.com 上找到。

When discussing our results, we refer to non-GAAP measures, which exclude certain items from reported results. Please refer to today's earnings release for reconciliations of these non-GAAP measures.

在討論我們的結果時，我們指的是非公認會計準則衡量標準，這些衡量標準從報告的結果中排除了某些項目。請參閱今天的收益報告，以了解這些非公認會計準則指標的調節表。

Additionally, I would like to highlight slide 2 of our earnings presentation and remind you that comments made during this call may contain forward-looking statements relating to Valley National Bancorp and the banking industry. Valley encourages all participants to refer to our SEC filings, including those found on Forms 8-K, 10-Q, and 10-K, for a complete discussion of forward-looking statements and the factors that could cause actual results to differ from those statements.

此外，我想強調我們收益簡報的投影片 2，並提醒您，本次電話會議中發表的評論可能包含與 Valley National Bancorp 和銀行業相關的前瞻性聲明。 Valley 鼓勵所有參與者參考我們向 SEC 提交的文件，包括表格 8-K、10-Q 和 10-K 中的文件，以全面討論前瞻性陳述以及可能導致實際結果與預期結果不同的因素聲明。

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

這樣，我會將電話轉給艾拉·羅賓斯。

Thank you, Travis. During the fourth quarter of 2024, Valley reported net income of $96 million, an earnings per share of $0.18. Exclusive of non-core items, adjusted net income and adjusted earnings per share were $99 million and $0.19, respectively. The quarter's results were impacted by an outsized provision for loan losses, which I will discuss shortly.

謝謝你，崔維斯。 2024 年第四季度，Valley 報告淨利潤為 9,600 萬美元，每股收益為 0.18 美元。不計非核心項目，調整後淨利和調整後每股收益分別為 9,900 萬美元和 0.19 美元。本季的業績受到巨額貸款損失撥備的影響，我很快就會討論這一點。

On a pre-tax, pre-provision basis, we saw a positive inflection this quarter. The sequential downward trend in net interest income slowed meaningfully despite the lower day count during the quarter. This reflects the benefit of asset pricing and our efforts to better control funding costs. Fee income results were strong, supported by certain unique businesses, including tax credit advisory.

在稅前、撥備前基礎上，我們看到本季出現了正面的變化。儘管本季天數減少，但淨利息收入的連續下降趨勢明顯放緩。這反映了資產定價的好處以及我們更好地控制融資成本的努力。在某些獨特業務（包括稅收抵免諮詢）的支持下，費用收入表現強勁。

Finally, non-interest expenses were extremely well controlled despite the seasonal headwind associated with higher payroll taxes. Despite the continuation of the inverted yield curve and other environmental challenges, I am pleased with the stronger pre-tax, pre-provision earnings results this quarter. I'm also pleased with the quarter's balance sheet strength and credit quality performance.

最後，儘管工資稅上漲帶來了季節性逆風，但非利息支出仍得到了極好的控制。儘管殖利率曲線倒掛和其他環境挑戰持續存在，但我對本季稅前、撥備前獲利結果的強勁感到滿意。我也對本季的資產負債表實力和信貸品質表現感到滿意。

On slide 4, we outlined certain efforts made to curtail loan growth, enhance reserve coverage were needed in the portfolio, and incrementally optimize our funding base. Total loans declined nearly $300 million during the quarter as a result of our proactive efforts to participate out a portion of certain commercial real estate and construction loans and the sale of our commercial premium finance business.

在投影片 4 中，我們概述了為抑制貸款成長、提高投資組合所需的準備金覆蓋率以及逐步優化我們的融資基礎而採取的某些努力。由於我們積極努力參與部分商業房地產和建築貸款以及出售我們的商業溢價金融業務，本季貸款總額減少了近 3 億美元。

These sale transactions each occurred at or above par and incrementally benefit our commercial real estate concentration, capital ratios, and reserve levels. Our allowance for credit losses for loans as a percentage of total loans increased 5 basis points to 0.98% during the quarter.

這些銷售交易均達到或高於面值，並逐漸有利於我們的商業房地產集中度、資本比率和儲備水準。本季度，我們的貸款信用損失準備金佔貸款總額的百分比增加了 5 個基點，達到 0.98%。

Meanwhile, our past-due and non-accrual loans both declined as compared to December 31, 2023. The higher provision and associated reserve coverage reflects internal risk rating migrations resulting from our continuous monitoring and rigorous stress testing of the commercial loan portfolio.

同時，與2023 年12 月31 日相比，我們的逾期貸款和非應計貸款均有所下降。壓力測試導致的內部風險評級遷移。

During the quarter, an additional 1% of loans transitioned into either our criticized or classified loan buckets. While we remain comfortable with the sponsorship, collateral, support, and potential loss content of these loans, criticized loans require elevated reserve coverage under CECL. We are comfortable with the current reserve coverage levels, but anticipate that the allowance could trend slightly higher over the next few quarters.

本季度，另外 1% 的貸款轉入我們批評或分類的貸款類別。雖然我們對這些貸款的贊助、抵押、支持和潛在損失內容仍然感到滿意，但受到批評的貸款需要根據 CECL 提高準備金覆蓋率。我們對目前的準備金覆蓋水準感到滿意，但預計未來幾季準備金可能會略有上升。

Our focus on and expertise in commercial real estate lending has generated strong and stable risk-adjusted financial results throughout our history. The strength of our commercial real estate underwriting and the consistently industry-leading loss content of our portfolio has contributed to significant shareholder value creation through above-average tangible book value growth.

我們對商業房地產貸款的關注和專業知識在我們的歷史中產生了強勁且穩定的風險調整財務表現。我們商業房地產承保的實力以及我們投資組合始終處於行業領先的損失內容，透過高於平均水平的有形帳面價值增長，為股東創造了重大價值。

Our strong network of borrowers have banked with Valley for decades and have performed very well in other periods of rising interest rates. We remain very confident with our capital allocation and in the future credit performance of our commercial real estate portfolio.

我們強大的借款人網絡已經在 Valley 存有數十年的歷史，並且在其他利率上升時期表現也非常出色。我們對我們的資本配置和商業房地產投資組合的未來信用表現仍然充滿信心。

That said, I acknowledge that our perceived concentration in commercial real estate has recently amplified the volatility in our company's valuation. This volatility is based purely on perception and is not reflective of our financial results nor the strength of our credit quality and balance sheet.

也就是說，我承認我們對商業房地產的關注最近放大了我們公司估值的波動性。這種波動純粹是基於感知，並不反映我們的財務業績，也不反映我們的信用品質和資產負債表的實力。

Still, we exist to serve our key stakeholders. And while I'm proud of our ability to exceed the expectations of our clients, communities, and employees, I acknowledge that the volatility experienced by our shareholders is not sustainable.

儘管如此，我們的存在還是為了服務我們的主要利害關係人。雖然我為我們超越客戶、社區和員工期望的能力感到自豪，但我承認股東所經歷的波動是不可持續的。

Commercial real estate is a wonderful asset class and one in which our differentiated approach continues to create incredible value. We will remain active in this space, but we'll manage our concentration more efficiently going forward.

商業房地產是一種出色的資產類別，我們的差異化方法將繼續創造令人難以置信的價值。我們將在這個領域保持活躍，但未來我們將更有效地管理我們的注意力。

Our diversifying C&I initiatives will continue to accelerate, and we will further enhance our financial flexibility. These efforts are consistent with our established strategic plan, and I believe that accelerating them will help to reduce the volatility in our valuation.

我們的工商業多元化措施將持續加速，我們將進一步增強財務靈活性。這些努力與我們既定的策略計畫是一致的，我相信加快這些努力將有助於減少我們估值的波動。

With this in mind, you can see our near and intermediate-term expectations for certain balance sheet metrics on slide 5. We expect to have approximately 9.8% Tier 1 common equity, 440% commercial real estate to risk-based capital, an allowance coverage ratio above 1%, and a loan-to-deposit ratio around 100% by year end 2024. These metrics are consistent with the strategy which we have discussed previously and our ongoing efforts to further strengthen our balance sheet and enhanced financial flexibility.

考慮到這一點，您可以在投影片5 上看到我們對某些資產負債表指標的近期和中期預期。備覆蓋率到2024 年底，貸存比將超過1%，貸存比將達到100% 左右。 這些指標與我們之前討論的戰略以及我們為進一步強化資產負債表和增強財務靈活性而持續做出的努力是一致的。

The following slide updates our previously provided guidance. The downward revision to our net interest income forecast reflects slower loan growth and a modest funding mix shift related to lower non-interest bearing deposit balances during the first quarter.

下面的幻燈片更新了我們之前提供的指南。我們對淨利息收入預測的下調反映了貸款成長放緩以及與第一季無息存款餘額下降相關的適度融資組合變化。

We anticipate that the downward revision in net interest income for the year will be largely offset by lower non-interest expenses relative to our prior guidance. All else equal, this would lead pre-tax, pre-provision income relatively in line with current consensus expectations.

我們預計，今年淨利息收入的下調將在很大程度上被非利息支出相對於我們先前指引的下降所抵消。在其他條件相同的情況下，這將使稅前、撥備前收入相對符合當前的共識預期。

On slide 7, we provide additional commentary on our base case net interest income scenario as well as some considerations related to our exposure to changing interest rates. As we have described before, our balance sheet is generally neutral to changes in short-term interest rates. We are more sensitive to movement in longer end rates, which impacts the repricing of roughly 60% of our loans.

在投影片 7 中，我們對基本情況淨利息收入情境以及與我們面臨的利率變化風險相關的一些考慮因素提供了額外的評論。正如我們之前所描述的，我們的資產負債表對短期利率的變化總體上是中性的。我們對長期利率的變動更加敏感，這影響了我們約 60% 貸款的重新定價。

Before I turn the call to Tom, I wanted to highlight the underlying franchise value that we continue to create despite the volatility in our valuation. Since the end of 2017, we have grown reported tangible book value by 47% versus just 38% for our regional banking peers.

在打電話給湯姆之前，我想強調儘管我們的估值存在波動，但我們仍在繼續創造潛在的特許經營價值。自 2017 年底以來，我們報告的有形帳面價值增加了 47%，而區域銀行同業的增幅僅為 38%。

Including the impact of distributed dividends, this increases to 91% versus just 70%, respectively. This positive variance reflects our ability to enhance our franchise without meaningfully diluting tangible book value and overpriced acquisitions or (inaudible) efforts to maximize near-term results.

包括分配股利的影響，該比例分別增至 91% 及 70%。這種正差異反映出我們有能力增強我們的特許經營權，而不會顯著稀釋有形帳面價值和定價過高的收購或（聽不清楚）努力最大化近期業績。

Customer count growth is another key metric that gauges our ability to build and optimize our franchise. Since year end 2017, we have more than doubled our number of commercial deposit accounts, which is in direct alignment with our strategic objectives.

客戶數量成長是衡量我們建立和優化特許經營能力的另一個關鍵指標。自2017年底以來，我們的商業存款帳戶數量增加了一倍多，這與我們的策略目標直接一致。

The ongoing addition of new deposit clients is critical as it supports our future earnings potential and financial consistency. This growth has been broad-based across geographies and business line, and we continue to work hard at sustaining this momentum.

新存款客戶的不斷增加至關重要，因為它支持我們未來的獲利潛力和財務一致性。這種成長在各個地區和業務領域都有廣泛的基礎，我們將繼續努力維持這種勢頭。

We also believe there is significant value in the geographic diversity that we have developed on both the asset and liability sides of the balance sheet. At the end of 2017, nearly 80% of our commercial loans were concentrated in New York and New Jersey. That figure has declined to nearly 50% today as a result of our focus in Florida and other dynamic commercial markets.

我們也相信，我們在資產負債表的資產和負債方面所發展的地域多樣性具有重大價值。截至2017年底，我們近80%的商業貸款集中在紐約和新澤西州。由於我們專注於佛羅裡達州和其他充滿活力的商業市場，這一數字如今已下降至近 50%。

We continue to develop exceptional service-oriented banking teams across the country, which are focused on generating and enhancing the valuable commercial relationships that we have targeted. This progress has benefited the funding side of our bank as well.

我們繼續在全國範圍內發展卓越的以服務為導向的銀行團隊，專注於建立和加強我們所瞄準的有價值的商業關係。這一進展也使我們銀行的融資方面受益。

In 2017, 78% of our deposits were in northeast branches. As of the end of the first quarter, that number has declined to 45%. We have diverse niche funding businesses and a robust branch network across Florida and Alabama. This diversity helps to insulate our funding base and provides unique and differentiated opportunities to further reduce our reliance on wholesale funding over time.

2017年，本行78%的存款分佈在東北分行。截至第一季末，這一數字已下降至 45%。我們擁有多元化的利基融資業務以及遍布佛羅裡達州和阿拉巴馬州的強大分支機構網絡。這種多樣性有助於隔離我們的資金基礎，並提供獨特和差異化的機會，以進一步減少我們對批發資金的依賴。

On last quarter's call, I laid out three strategic imperatives for the coming year. Our early results indicate solid traction relative to enhancing our cost-effective core deposit funding, the de-emphasis of commercial real estate, and more revenue diversity. As mentioned, we will continue to accelerate the diversification of our loan portfolio, and I have all the confidence we will continue to produce solid results.

在上個季度的電話會議上，我提出了來年的三項策略要務。我們的早期結果表明，相對於提高我們具有成本效益的核心存款融資、不再重視商業房地產以及增加收入多樣性而言，具有堅實的吸引力。如前所述，我們將繼續加速貸款組合的多元化，我完全有信心我們將繼續取得紮實的成果。

With that, I will turn the call over to Tom and Mike to discuss the quarter's growth and financial results. After Mike concludes his remarks. Tom; Mike; myself; and Mark Seagar, our Chief Credit Officer, will be available for your questions.

接下來，我將把電話轉給湯姆和麥克，討論本季的成長和財務表現。麥克結束發言後。湯姆；麥克風;我;我們的首席信貸官 Mark Seagar 將隨時解答您的問題。

Thank you, Ira. Slide 9 illustrates the quarter's deposit trends. Total deposits declined slightly due to the intentional runoff of higher-cost time deposits which had matured. From a customer deposit perspective, this runoff was primarily offset by growth in interest-bearing, non-maturity deposits within our specialty deposit niches.

謝謝你，艾拉。投影片 9 顯示了本季的存款趨勢。由於已到期的成本較高的定期存款被故意流失，存款總額略有下降。從客戶存款的角度來看，這種流失主要被我們的專業存款領域內的計息、非到期存款的成長所抵銷。

Our ability to tactically reduce deposit pricing in certain product types and categories helped to meaningfully slow the pace of deposit cost increases during the quarter. Despite a rotation of approximately $200 million of non-interest deposits into interest-bearing deposits, our total cost of deposits increased a modest 3 basis points.

我們有能力戰術性地降低某些產品類型和類別的存款定價，有助於大幅減緩本季存款成本成長的速度。儘管約 2 億美元的無息存款轉為有息存款，但我們的總存款成本小幅上升了 3 個基點。

The next slide provides more detail on the composition of our deposit portfolio by delivery channel and business line. Traditional branch deposits declined slightly as a result of the runoff of certain higher-cost time deposits. That said, we saw stable deposit trends in our southeast franchise. Our specialty niches increased slightly during the quarter and our online deposits and technology business continued to expand.

下一張投影片按交付管道和業務線提供了有關我們存款組合構成的更多詳細資訊。由於某些成本較高的定期存款流失，傳統分行存款略有下降。也就是說，我們在東南部特許經營中看到了穩定的存款趨勢。我們的專業利基市場在本季略有成長，我們的線上存款和技術業務持續擴大。

Slide 11 illustrates the management actions which reduced loans during the quarter. Total loans declined nearly $300 million, driven primarily by commercial real estate and construction participations out of the bank. Importantly, these participations were executed with no negative impact to equity.

投影片 11 說明了本季減少貸款的管理行動。貸款總額減少近 3 億美元，主要是由銀行外的商業房地產和建築參與所推動的。重要的是，這些參與的執行並未對股權產生負面影響。

We continue to monitor opportunities to further participate out certain loans and to enable certain mature loans to refinance away from Valley. The sequential reduction in C&I loans was due entirely to the sale of our commercial premium finance business and subsequent maturities in that remaining portfolio, we continue to focus our origination efforts on traditional C&I, owner-occupied real estate, and healthcare.

我們將繼續關注進一步參與某些貸款的機會，並使某些到期貸款能夠從矽谷進行再融資。工商業貸款的連續減少完全是由於我們的商業保費金融業務的出售以及剩餘投資組合的隨後到期，我們繼續將我們的發起工作重點放在傳統工商業、業主自用房地產和醫療保健上。

On slide 12, I would highlight that our loan to values are based on the most recent appraisal received on a property. The average life of these appraisals is approximately 2.5 years. Our debt service coverage ratios are calculated based on the most recent borrower financial information that we have, which is typically received at least annually.

在投影片 12 上，我要強調的是，我們的貸款價值是基於最近收到的房產評估。這些評估的平均壽命約為 2.5 年。我們的償債覆蓋率是根據我們掌握的最新借款人財務資訊計算的，這些資訊通常至少每年收到一次。

The following two slides provide additional detail on our multi-family and office portfolios. We continue to have modest exposure to New York multi-family loans and highlight that a mere $531 million or roughly 20% of that sub portfolio has more than 50% rent-controlled units.

以下兩張投影片提供了有關我們的多戶住宅和辦公室投資組合的更多詳細資訊。我們仍然對紐約多戶家庭貸款持有適度的敞口，並強調，只有 5.31 億美元（約佔該子投資組合的 20%）擁有超過 50% 的租金管制單位。

Our office portfolio remains diverse by geography and supported by generally diverse cash flows with nearly 65% of our loans to multi-tenant properties. With that, I will turn the call over to Mike Hagedorn to provide additional insight into the quarter's financials.

我們的辦公室投資組合在地域上保持多樣化，並得到普遍多樣化的現金流的支持，其中近 65% 的貸款提供給多租戶房產。接下來，我將把電話轉給邁克·哈格多恩 (Mike Hgedorn)，以提供有關本季度財務狀況的更多見解。

Thank you, Tom. Staying on the CRE topic for a moment, slide 15 illustrates the contractual maturities of our commercial real estate portfolio. We also included the LTV, DSCR, and rate by maturity bucket for your benefit. This maturity schedule illustrates the minimal repricing risk of our loans maturing over the next few quarters.

謝謝你，湯姆。暫時停留在 CRE 主題上，投影片 15 說明了我們商業房地產投資組合的合約期限。為了您的利益，我們還包括了 LTV、DSCR 和按期限劃分的費率。該到期時間表說明了我們在未來幾季到期的貸款的重新定價風險最小。

Slide 16 illustrates Valley's recent quarterly net interest income and margin trends. The modest sequential declines in both net interest income and net interest margin were primarily the result of one fewer day in the quarter.

投影片 16 顯示了 Valley 最近的季度淨利息收入和利潤率趨勢。淨利息收入和淨利差環比小幅下降主要是由於本季減少了一天。

We strategically lower deposit costs by approximately 40 basis points on nearly $10 billion of deposits, which helped to stabilize net interest income as the quarter progressed. This helped to offset the headwind associated with lower average non-interest bearing deposits during the quarter. After shortening our liability duration during the first quarter, we locked in a small amount of long-term funding at relatively attractive cost, which will further benefit net interest income during the second quarter, all else equal.

我們策略性地將近 100 億美元存款的存款成本降低約 40 個基點，這有助於穩定本季的淨利息收入。這有助於抵消本季平均無息存款下降的不利影響。在第一季縮短負債期限後，我們以相對有吸引力的成本鎖定了少量長期資金，這將進一步有利於第二季的淨利息收入（其他條件相同）。

Turning to the next slide, you can see that non-interest income on an adjusted basis improved meaningfully from the fourth quarter of 2023. A portion of this improvement was related to rebounding deposit service charges as some fees were waived around our conversion in the fourth quarter of 2023.

轉向下一張投影片，您可以看到調整後的非利息收入自2023 年第四季以來顯著改善。了一些費用2023 年第四季。

Beyond this, we offset headwinds to swap revenue on commercial loan transactions with improved wealth revenues and a very strong quarter from our tax credit advisory business. On that front, Dudley Ventures had certain tax credit transactions closed during the quarter, which had been delayed from the end of 2023. While demand for our tax credit advisory services continues to grow, we would anticipate that debt lease revenues will decline somewhat from this quarter's elevated levels.

除此之外，我們還透過改善財富收入和稅收抵免諮詢業務強勁的季度業績來抵消商業貸款交易收入的不利因素。在這方面，Dudley Ventures 在本季完成了某些稅收抵免交易，該交易從2023 年底開始被推遲。所下降本季的較高水準。

On the following slide, you can see that our non-interest expenses were approximately $280 million for the quarter. Adjusting for our $7.5 million FDIC special assessment and certain other non-core charges, non-interest expenses were approximately $267 million on an adjusted basis. This represents a 2% decline from the adjusted fourth quarter of 2023 and a near 1% increase on a year-over-year basis.

在下一張投影片中，您可以看到本季我們的非利息支出約為 2.8 億美元。調整 750 萬美元的 FDIC 特別評估和某些其他非核心費用後，調整後的非利息支出約為 2.67 億美元。這比調整後的 2023 年第四季下降 2%，較去年同期成長近 1%。

The quarter's increase in compensation costs was primarily the result of seasonal payroll tax impacts, as headcount remains generally well-controlled. We saw notable reductions in our technology and consulting expenses as the costs associated with our core conversion in the fourth quarter of 2023 continued to run off. While revenue pressures have weighed on our efficiency ratio in recent quarters, our expense base continues to be stable relative to our balance sheet and well below peer levels for the same comparison.

本季薪資成本的增加主要是由於季節性工資稅的影響，因為員工人數總體上仍得到良好控制。隨著 2023 年第四季與核心轉換相關的成本持續下降，我們的技術和諮詢費用顯著減少。儘管近幾季的收入壓力影響了我們的效率比率，但我們的費用基礎相對於我們的資產負債表仍然保持穩定，並且遠低於同業水準。

Key pillars on slide 19 not only support our conservative underwriting and strong credit performance, but also our ability to mitigate losses in periods of stress. I will discuss this more in a moment.

投影片 19 上的關鍵支柱不僅支持我們保守的核保和強勁的信用表現，而且支持我們在壓力時期減輕損失的能力。我稍後會詳細討論這個問題。

Slide 20 offers a general comparison of our lending approach as a relationship-based regional bank with more transactional-oriented institutions. We have deep market knowledge and bank well-known and active investors who are strongly aligned with the need to protect and enhance their property values over time. Our borrowers tend to be more disciplined and value oriented with respect to project selection.

投影片 20 對我們作為基於關係的區域銀行與更多以交易為導向的機構的貸款方式進行了總體比較。我們擁有深厚的市場知識和銀行知名且活躍的投資者，他們強烈支持隨著時間的推移保護和提高其財產價值的需要。我們的借款人在專案選擇方面往往更自律且以價值為導向。

From an underwriting perspective, we generally focus on in-place, not projected, cash flows, which provides an added buffer should NOI growth not materialize. We hope these pages provide some further context for the credit results illustrated on slides 21 and 22.

從承保的角度來看，我們通常專注於現有現金流，而不是預期現金流，這在 NOI 成長未能實現的情況下提供了額外的緩衝。我們希望這些頁面為幻燈片 21 和 22 所示的信用結果提供一些進一步的背景資訊。

On 21, you can see the continued stability in our non-accrual and past-due loan buckets. The bottom charts illustrate our allowance for credit loss coverage relative to loans and past-due loans. As Ira mentioned, the quarter's increase in allowance was primarily related to quantitative reserves associated with the migration of loans into criticized and classified categories.

21 日，您可以看到我們的非應計貸款和逾期貸款持續穩定。下圖顯示了我們相對於貸款和逾期貸款的信用損失準備金。正如 Ira 所提到的，本季準備金的增加主要與與貸款轉移到批評和分類類別相關的數量準備金有關。

We remain confident with the performance and potential loss content of these loans. We are comfortable with the current position of the allowance, but acknowledge that further real estate stress and elevated interest rates could move our allowance coverage somewhat beyond 1% during the remainder of 2024.

我們對這些貸款的表現和潛在損失內容仍然充滿信心。我們對目前的津貼狀況感到滿意，但承認進一步的房地產壓力和利率上升可能會使我們的津貼覆蓋率在 2024 年剩餘時間內略高於 1%。

Turning to slide 22. Net charge-offs ticked up during the quarter as a result of a $9.5 million charge-off related to taxi medallion loans. Commercial real estate charge-offs were de minimis. We present two important analyses at the bottom of this slide.

轉向投影片 22。商業房地產的沖銷是微乎其微的。我們在這張投影片的底部提出了兩個重要的分析。

On the bottom left, we compare loss-given default ratios on our commercial real estate and construction loans to peers over a variety of timeframes. Loss-given default is a calculation of charge-offs relative to nonaccrual loans.

在左下角，我們比較了不同時間範圍內我們的商業房地產和建築貸款與同行的損失給定違約率。損失給定違約是相對於非應計貸款的沖銷計算。

This analysis suggests that over time, our non-accrual loans were significantly less likely to be charged off than our peers given our loss mitigation techniques. The most important last mitigation tool that we have in times of stress is typically the deep resources and liquidity of our wealthy borrower base.

這項分析表明，隨著時間的推移，考慮到我們的損失減輕技術，我們的非應計貸款被沖銷的可能性明顯低於同行。在壓力時期，我們擁有的最後一個最重要的緩解工具通常是我們富裕借款人基礎的深厚資源和流動性。

On the bottom right, we illustrate our reserve relative to implied years of coverage based on certain loss rates. While our allowance coverage is below peers on an absolute basis, we believe that relative to potential loss content, we remain consistently better reserved.

在右下角，我們根據某些損失率說明了我們的準備金相對於隱含承保年限的情況。雖然我們的準備金覆蓋範圍絕對低於同行，但我們相信，相對於潛在的損失內容，我們始終保持更好的保留。

For example, our current reserve would cover six years of implied loan losses based on the average net charge-off rate between 2001 and 2023. This is double the relative reserve coverage of our peers.

例如，我們目前的準備金將涵蓋根據 2001 年至 2023 年期間平均淨沖銷率計算的六年隱含貸款損失。

We remain confident that we are well-positioned for a potential deterioration of credit quality across the industry. Our below peer loss rates relative to total loans and CRE loans, specifically, are illustrated on slide 23. As we have said historically, our loss rates tend to be roughly 40% of peer levels through the cycle.

我們仍然相信，我們已經做好了應對整個行業信貸品質潛在惡化的準備。具體來說，我們相對於總貸款和商業房地產貸款的損失率低於同行，如幻燈片23 所示。 40%。

The next slide illustrates the sequential increase in our tangible book value and capital ratios. Tangible book value increased slightly from the fourth quarter of 2023 despite a modest headwind from the OCI impact associated with our available-for-sale securities portfolio. Regulatory capital ratios have continued to expand. And as Ira mentioned earlier, we anticipate further expansion for the rest of 2024 and beyond.

下一張投影片說明了我們的有形帳面價值和資本比率的連續成長。儘管與我們的可供出售證券投資組合相關的 OCI 影響帶來了適度的阻力，但有形帳面價值較 2023 年第四季略有增加。監理資本比率持續擴大。正如 Ira 之前提到的，我們預計 2024 年剩餘時間及以後將進一步擴張。

With that, I'll turn the call back to the operator to begin Q&A. Thank you.

之後，我會將電話轉回接線生開始問答。謝謝。

Thank you. (Operator Instructions) Steven Alexopoulos, JPMorgan.

謝謝。 （操作員指示）Steven Alexopoulos，摩根大通。

Hey. Good morning, everyone. I want to start -- so Ira, first, on the CRE concentration and moving down to 440% or lower. Could you give us a sense of your $32 billion of CRE loans in the quarter, including construction? Where should we expect those to trend for the rest of the year? And do you think you could continue to do what you did this quarter, exit at par?

嘿。大家，早安。我想開始——所以 Ira，首先是 CRE 濃度，然後降低到 440% 或更低。您能否向我們介紹您本季 320 億美元的 CRE 貸款（包括建築業）？我們應該預期今年剩餘時間這些趨勢會如何？您認為您可以繼續做本季所做的事情，以平價退出嗎？

Yeah. I think when we look at that CRE concentration, it's really a function of not including the owner-occupied loans into that. So I think on one of our slides, when we give the breakout of the balance sheet, it probably gives a bit better on what that starting number (inaudible) like.

是的。我認為，當我們審視商業房地產的集中度時，它實際上是一個不包括自住貸款的函數。因此，我認為在我們的一張投影片中，當我們給出資產負債表的突破時，它可能會更好地說明起始數字（聽不清楚）的情況。

I think we had a really successful quarter and working with [Bleed] and some of the other partners that we've worked with over the years and looking at increased participations. As you can see on the loan yield maturities that we have coming due, there really is not a significant variance versus where our current portfolio sits versus where market indications or rates are today.

我認為我們度過了一個非常成功的季度，並與 [Bleed] 以及我們多年來合作過的其他一些合作夥伴合作，並尋求增加參與度。正如您在我們即將到期的貸款收益率到期時所看到的那樣，我們當前的投資組合與今天的市場指標或利率確實沒有顯著差異。

So it really isn't a rate issue, as our -- which would hinder some of our ability to really offset some of the loans that we have from a participation perspective. And as you've seen over the years, the credit quality has been really, really stellar here. And as people have gone through and looked at the loans, they tend to agree with that assessment as well.

因此，這實際上不是一個利率問題，因為我們的利率問題會阻礙我們從參與的角度真正抵消我們擁有的一些貸款的能力。正如您多年來所見，這裡的信用品質非常非常出色。當人們仔細查看這些貸款後，他們也傾向於同意這種評估。

Okay. That's helpful. I'm curious, Ira. So stock's off -- I think it's a little over 30% this year. You mentioned perception, I believe, in terms of on the real estate portfolio. When you compare yourselves -- I mean, this has all happened in the aftermath of New York Community. When you compare your free portfolio to peer banks, what do you think the market's missing.

好的。這很有幫助。我很好奇，艾拉。所以庫存下降了——我認為今年下降了 30% 多一點。我相信，您提到了對房地產投資組合的看法。當你比較自己時——我的意思是，這一切都發生在紐約社區之後。當您將您的免費投資組合與同行銀行進行比較時，您認為市場缺少什麼。

I think to acknowledge that there is not an issue in commercial real estate on a macro perspective I think would be putting my head in the sand. I think that said, if you really dive into the areas that are really under stress today, I think office is an obvious, right? And that's just not a function of where interest rates are. That's behaviors have actually changed.

我認為，承認從宏觀角度來看商業房地產不存在問題，我認為我會把頭埋在沙子裡。我認為，如果你真的深入研究當今真正面臨壓力的領域，我認為辦公室是一個明顯的問題，對吧？這與利率水準無關。這實際上已經改變了行為。

The rent regulated in New York City is another area of stress. And then I think my third perspective is the repricing risk that exists. So if you just really isolate those three specific areas and then dive into the underlying details of where Valley is on those three specifics, on the office portfolio, it's about $3.3 billion.

紐約市的租金管制是另一個壓力領域。然後我認為我的第三個觀點是存在的重新定價風險。因此，如果你真正隔離這三個具體領域，然後深入了解 Valley 在這三個具體領域以及辦公大樓投資組合方面的基本細節，則價值約為 33 億美元。

But when you look at the specific underlying metrics of those loans, they're very small in size. In addition to that, what we try to do is give you an update even on what those updated debt service coverage ratios are. So we're sitting on [168] of service coverage ratio on the office portfolio, which I think is very differentiated.

但當你查看這些貸款的具體基本指標時，你會發現它們的規模非常小。除此之外，我們試圖向您提供最新的償債覆蓋率的最新情況。因此，我們的辦公室投資組合的服務覆蓋率是[168]，我認為這是非常差異化的。

I would say the larger differentiation on the office on the office is actually the size. Our office is only $3 million on average. I mean, there really is not much stress within those types of offices that we're lending against. So I think that's something that's probably a little bit differentiated.

我想說，辦公室最大的區別實際上是大小。我們的辦公室平均只有 300 萬美元。我的意思是，我們貸款的這類辦公室確實沒有太大壓力。所以我認為這可能有點不同。

And the rent regulated is obviously a little bit differentiated as well. As Tom mentioned in his prepared comments, we're really sitting with about $500 million of rent regulated. That's north of 50% of what that composition looks like.

而且所監管的租金顯然也有一些差異。正如湯姆在他準備好的評論中提到的那樣，我們實際上面臨著大約 5 億美元的租金監管。這超出了該構圖的 50%。

So once again, I think it's a very small portfolio and very manageable as we think about what the risk of that portfolio looks like. Everything is current today with the portfolio.

因此，我再次認為，當我們考慮該投資組合的風險時，這是一個非常小的投資組合，並且非常容易管理。今天的投資組合中的一切都是最新的。

And then I think the third one that I alluded to was really the rate reset risk. And we tried to give a little more granularity in the earnings call as well as in the presentation. The rate reset risk is not what it's like at many of our peers here.

然後我認為我提到的第三個風險實際上是利率重置風險。我們試圖在財報電話會議和演示中提供更多的細節。利率重置風險與我們這裡的許多同行不同。

That said, look, I acknowledge the CRE concentration is pretty significant. On a macro level, we look at the concentration. People just have a perspective of what that is at Valley. So I'm aware of that; I acknowledge it.

也就是說，我承認商業不動產的集中度相當高。宏觀層面，我們看集中度。人們只是對矽谷的情況有自己的看法。所以我知道這一點；我承認。

I think as an organization, we need to begin to reduce what that macro CRE concentration is. But at Valley, CRE concentration doesn't mean that you're going to have an absolute loss. We migrated some loans into classified and criticized loans this specific quarter.

我認為作為一個組織，我們需要開始減少宏觀 CRE 的集中度。但在 Valley，CRE 集中並不意味著你會遭受絕對損失。本季我們將一些貸款轉入分類和批評貸款。

As we mentioned before, the loss history is very, very different here at Valley as well because a loan gets classified as a criticized loan here. It does not mean you're going to have a loss associated with that. We've proven that year over year.

正如我們之前提到的，山谷的損失歷史也非常非常不同，因為貸款在這裡被歸類為批評貸款。這並不意味著您會因此而蒙受損失。我們年復一年地證明了這一點。

I think in the third quarter, we had a significant increase in what our classified loans were as well. And if you look at the results this quarter, there's not an uptick in non-accrual. There's not an uptick in delinquency. We had an uptick in classified a few quarters ago.

我認為在第三季度，我們的分類貸款也大幅增加。如果你看一下本季的業績，你會發現非應計費用並沒有增加。犯罪率並沒有上升。幾個季度前，我們的分類廣告有所增加。

So I think it's just getting familiar with the granularity of what our portfolio is, which takes time for some people and takes effort as well. And that said, we have patience here and we're very comfortable that over the long term, we're going to end up in a really good spot.

所以我認為這只是熟悉我們投資組合的粒度，這對某些人來說需要時間，也需要努力。也就是說，我們在這裡有耐心，而且我們非常放心，從長遠來看，我們最終將處於一個非常好的位置。

Okay. That's helpful. If I could just ask one other one and change direction. On the expense, the updated expense guide, just as below low end of the range. What actions you guys think you've done a lot, right, over the past few years? And what is the new range in terms of what you're thinking for expense growth this year?

好的。這很有幫助。如果我能問其他人並改變方向就好了。在費用方面，更新後的費用指南僅低於範圍的低端。在過去的幾年裡，你們認為自己做了很多事？您認為今年費用成長的新範圍是多少？

I think it's hopefully lower than where it is today. I think we announced on last call -- not last call (inaudible) last year, right, when we started to really see some additional pressure associated with the inverted yield curve, that we're going to put forth a 5% head count reduction in June of last year.

我認為它有望低於今天的水平。我想我們在最後一次電話會議上宣布——不是去年最後一次電話會議（聽不清楚），對吧，當我們開始真正看到與收益率曲線倒掛相關的一些額外壓力時，我們將提出減少5 % 的員工人數去年六月。

When you look at the actual numbers, we went from 3,912 employees in June of '23. We're sitting at 3,709 employees today. So we've decreased by 5.2% on the employee headcount overall. We think there's more opportunity to continue that overall focus.

當你查看實際數字時，我們發現 2023 年 6 月我們的員工人數為 3,912 人。今天我們有 3,709 名員工。因此，我們的員工總數減少了 5.2%。我們認為有更多機會繼續整體關注。

And I think the bigger piece is, Steve, that people underestimate the amount of resources from an internal and external perspective associated with the core conversion that we did at the end of 2023. A significant amount of expense was associated with that, and we continue to really begin to recognize some of the benefits of being on one platform. And we think that will continue throughout 2024 as well.

史蒂夫，我認為更重要的是，人們從內部和外部角度低估了與我們在 2023 年底進行的核心轉換相關的資源量。上的一些好處。我們認為這種情況也將持續到 2024 年。

Got it. Ira, thanks for taking my questions.

知道了。艾拉，謝謝你回答我的問題。

Thanks.

謝謝。

Thank you. Matthew Breese, Stephens Incorporated.

謝謝。馬修·布里斯，史蒂芬斯公司。

Hey. Good morning, everyone. As we think about commercial real estate growth in light of the updated guidance and actions this quarter, should we expect active runoff in that book? And if so, to what extent? Or should we expect that loan segment to essentially remain flattish while all the other segments, C&I, especially, grow around it?

嘿。大家，早安。當我們根據本季更新的指導和行動來考慮商業房地產的成長時，我們是否應該預期書中的積極徑流？如果是這樣，程度如何？或者我們應該預期貸款細分市場基本上保持平穩，而所有其他細分市場（尤其是商業和工業）則圍繞其成長？

Hey, Matt. It's Tom. As you see, we revised our guidance for our total loans to be between zero and 4% from the 5% to 7% annualized. We are intentionally managing our real estate portfolio by focusing on our top relationship-driven clients.

嘿，馬特。是湯姆。正如您所看到的，我們將貸款總額的指引從年化率 5% 修改為 0% 至 4% 至 7%。我們透過專注於我們的頂級關係驅動型客戶來有意管理我們的房地產投資組合。

We originated about $750 million in real estate loans in the first quarter, which is down significantly from what we have done in the past few years. We will still be active and involved in real estate, but we will still continue to sell loans.

第一季我們發放了約 7.5 億美元的房地產貸款，比過去幾年大幅下降。我們仍將積極參與房地產業務，但我們仍將繼續出售貸款。

The loans that are not relationship-driven. We'll let them mature and leave. In the first quarter, there were about $500 million of loans that matured and exited to other banks, and I'll point out all that full value to the bank.

非關係驅動的貸款。我們會讓他們成熟並離開。第一季度，大約有 5 億美元的貸款到期並退出到其他銀行，我將向銀行指出所有這些全部價值。

Or see, we're not changing our C&I expectations. We've grown that portfolio 10% on an annual basis. Outside of the premium finance sale, we would have been slightly up in the first quarter.

或者看，我們並沒有改變我們的 C&I 期望。我們的投資組合每年增長 10%。除了優質融資銷售之外，我們第一季的業績會略有上升。

First quarter is traditionally a slow quarter. We tend to get line utilization paydowns. Our owner-occupied portfolio in the first quarter grew 6% annualized. So that's a positive event.

第一季傳統上是一個緩慢的季度。我們傾向於獲得線路利用率的回報。第一季我們的自住投資組合年化成長了 6%。所以這是一個正面的事件。

Our pipelines and C&I are very stable. And we originated $1 billion of C&I loans in the first quarter, which is in line with what we have done in the past.

我們的管道和工商業非常穩定。我們在第一季發放了 10 億美元的工商業貸款，這與我們過去的做法一致。

Got it. Okay. And then with CECL, it feels like we were all taught to think about historical losses and forward-looking economic factors. And the reserve was supposed to be catered to each institution based on these assumptions. But in the wake of New York community and now the category four bank classification, it feels like there's a third leg to the stool, which is your peer group and what they're doing.

知道了。好的。然後，透過 CECL，感覺我們都被教導要思考歷史損失和前瞻性經濟因素。基於這些假設，儲備金應該滿足每個機構的需求。但在紐約社區和現在的第四類銀行分類之後，感覺好像凳子上有了第三條腿，那就是你的同儕群體和他們正在做的事情。

Is it fair to assume with that in mind that longer term, beyond what you've outlined for the intermediate term, that a lot of your ratios, commercial real estate, reserve capital needs to migrate to your category four peer-like levels despite whatever CECL says in terms of your quarter-to-quarter change in reserving?

考慮到這一點，從長遠來看，除了你所概述的中期之外，你的許多比率、商業房地產、儲備資本都需要遷移到你的第四類同行水平，這是否公平？金按季度變化？

Hey, Matthew. This is Mark Saeger. Just as it relates to our model, one of the positives is we use a transition matrix model, which is very sensitive to migration in the portfolio. We hold an elevated level of reserves against criticized and classified credits.

嘿，馬修。這是馬克·賽格。正如它與我們的模型相關一樣，優點之一是我們使用轉換矩陣模型，該模型對投資組合中的遷移非常敏感。我們針對批評和分類信貸持有較高水準的準備金。

So we get an immediate bump through the migration in our reserve, which shows the appropriateness of that migration, not just loss. And about two thirds of the increase in our reserve for the quarter was related to migration within the portfolio.

因此，我們的保護區內的遷徙立即發生了變化，這表明了遷徙的適當性，而不僅僅是損失。本季我們儲備金成長的約三分之二與投資組合內的遷移有關。

I think on a macro basis though, Matt, I mean -- to your specific question, do we have to be at where peer levels are, right? I think at our size of the organization, with only $60 billion, it's a long runway for us to get to $100 billion.

我認為，從宏觀的角度來看，馬特，我的意思是——對於你的具體問題，我們是否必須處於同行水平，對吧？我認為，就我們組織的規模而言，只有 600 億美元，要達到 1000 億美元還有很長的路要走。

So to look at where those reserve ratios are and automatically imply that we need to be at those levels based on this third perspective of what CECL looks like, I think, would be an incorrect assumption. I think the accounts are pretty clear what drives the CECL model.

因此，我認為，根據 CECL 的第三個視角，看看這些準備率在哪裡，就自動暗示我們需要處於這些水平，這是一個錯誤的假設。我認為這些帳目非常清楚推動 CECL 模式的因素。

And as Mark mentioned, it's going to uptick a little bit because of what we're seeing with the transition and a bit of an increase in some of those classified loans and criticized loans. But I don't think there's a guidance as we need to be at whatever the $100 million-plus banks are.

正如馬克所提到的，由於我們所看到的轉型以及一些分類貸款和批評貸款的增加，這一數字將會略有上升。但我認為沒有一個指導方針，因為無論資產規模超過 1 億美元的銀行是什麼，我們都需要這樣做。

I guess I'm more concerned about the CRE concentration because those peers operate at a median of 100% concentration, the highest of M&T, around $180 million, $190 million, and we're a long way off from that. So by the time you get to $100 million, you have to have made some significant changes along the way. And I'm curious if that's part of the plan here.

我想我更關心CRE 的集中度，因為這些同行的集中度中位數為100%，是M&T 中最高的，約為1.8 億美元、1.9 億美元，而我們距離這個目標還有很長的路要走。因此，當您達到 1 億美元時，您必須在過程中做出一些重大改變。我很好奇這是否是這裡計劃的一部分。

I think, obviously, going to $100 billion and saying we're going to have 400% CRE concentration is something that [doesn't] make any sense. That said, obviously, we have a very long runway, Matt. I mean, if you even took a 10% growth rate on our balance sheet today, it's over six years before we even get to $100 billion. And there's a lot that's going to happen at Valley over the next six-ish years.

我認為，顯然，達到 1000 億美元並說我們將擁有 400% 的 CRE 集中度是沒有任何意義的。也就是說，顯然我們有很長的跑道，馬特。我的意思是，如果今天我們的資產負債表成長率為 10%，那麼我們需要六年以上的時間才能達到 1000 億美元。在接下來的六年左右的時間裡，矽谷將會發生很多事情。

And I think getting the CRE concentration down is something we've talked about for years now of what the strategic focus has really been here. We've instituted C&I business lines from the tech business to a commodities business to all different types of C&I businesses many, many years ago with a focus on beginning to diversify what that portfolio looks like.

我認為降低商業房地產的集中度是我們多年來一直討論的策略重點。許多年前，我們已經建立了從科技業務到大宗商品業務再到所有不同類型的 C&I 業務的 C&I 業務線，重點是開始使投資組合多樣化。

As Tom mentioned, we're growing C&I 10% annualized. So it's not like we woke up one day and said, hey, the CRE concentration is too high. We need to begin to establish some of these foundational C&I businesses. We've been doing it for years. And we've actually seen a lot of positive outcomes associated with that C&I business as well.

正如 Tom 所提到的，我們的 C&I 年增長率為 10%。所以，我們並不是有一天醒來後說，嘿，CRE 濃度太高了。我們需要開始建立一些基礎性的 C&I 業務。我們已經這樣做很多年了。事實上，我們也看到了與 C&I 業務相關的許多積極成果。

So obviously, the CRE cannot be the same level at Valley that it's been historically. And we put a lot of good strategic initiatives in place to really begin to drive C&I business here that we've seen the fruits of for many years now, and we anticipate continuing to accelerate that.

顯然，矽谷的 CRE 不可能達到歷史上的水準。我們實施了許多良好的策略舉措，以真正開始推動這裡的工商業業務，多年來我們已經看到了這些成果，並且我們預計將繼續加速這一進程。

Last one for me, and then I'll hop back in the queue. Tom, you had mentioned undergoing, it sounds like, fairly extensive stress test for your commercial real estate book. And it shows that over time, you've had better loss content versus peers.

我的最後一個，然後我會跳回隊列。湯姆，你提到過對你的商業房地產書籍進行相當廣泛的壓力測試。它表明，隨著時間的推移，與同行相比，您的損失內容會更好。

I'm curious, what types of assumptions were overlaid in these stress tests? And at the end of the day, what was the kind of loss content? What was the charge-offs that that stress has resulted in?

我很好奇，這些壓力測試中涵蓋了哪些類型的假設？歸根究底，損失的內容是什麼？這種壓力導致了哪些沖銷？

So we don't publish neither say our specific stress test assumptions. But we do stress occupancy, rent per square foot, vacancies, overall rate, and market conditions as part of that stress testing and then test that against our overall capital to ensure that we're remaining a well-capitalized organization.

因此，我們既不發布也不透露我們的特定壓力測試假設。但作為壓力測試的一部分，我們會對入住率、每平方英尺租金、空置率、整體價格和市場狀況進行壓力測試，然後根據我們的整體資本進行測試，以確保我們仍然是一個資本充足的組織。

Matt, and I think one thing I would just add to that is the size of the scope of what we do when it comes to the credit review process. We laid out on slide 19 really Valley-specific credit framework, and that's really led to a lot of the lower loss-given defaults that Mike mentioned earlier.

馬特，我想我要補充的一件事是我們在信用審查過程中所做的工作範圍的大小。我們在幻燈片 19 上列出了真正針對矽谷的信貸框架，這確實導致了麥克之前提到的許多較低的損失給定違約率。

We manually -- credit officers looked at over 60% of the commercial real estate portfolio just this last quarter. So stress testing for us isn't just what assumptions you're applying to those stress testing, but the scale of what that stress testing is.

就在上個季度，信貸官員手動查看了超過 60% 的商業房地產投資組合。因此，對我們來說，壓力測試不僅僅是您對這些壓力測試所應用的假設，而是壓力測試的規模。

It's not just, hey, let's look at a couple of loans that are coming into in the next 12-ish months. It's really deep dives on each of these individual portfolios. So what you're seeing in the migration this quarter isn't just reflective of loans that are coming due in the next 12-ish months; it's 60% of the entire CRE book that we have.

這不僅僅是，嘿，讓我們看看未來 12 個月左右將發放的幾筆貸款。這是對每個單獨投資組合的真正深入研究。因此，您在本季度的遷移中看到的情況不僅反映了未來 12 個月左右到期的貸款；還反映了未來 12 個月內到期的貸款。它占我們整本 CRE 書籍的 60%。

I appreciate all the color. Thank you.

我欣賞所有的顏色。謝謝。

Thank you. Frank Schiraldi, Piper Sandler.

謝謝。弗蘭克·席拉爾迪，派珀·桑德勒。

Hey. guys. Good morning. Just to follow up on the last line of question a little bit, just on the -- I just want to make sure I understand slide 5, the reserve. Mike, you talked about being relatively comfortable with where reserves are. And given loss rates, you've actually better reserve than peers in many ways.

嘿。夥計們。早安.只是稍微跟進一下問題的最後一行，只是 - 我只是想確保我理解幻燈片 5，即儲備金。麥克，你談到對儲備金的位置相對滿意。考慮到損失率，您實際上在許多方面都比同行有更好的儲備。

So just trying to understand when we get to the roughly [110] reserve over the next 12 to 24 months. So what's the driver there? Is it as the commercial real estate book matures and reprices, or is that just kind of more as you grow, getting in line with peers over time?

因此，我們只是想了解一下，在接下來的 12 到 24 個月內，我們何時會達到大約 [110] 的儲備。那麼那裡的司機是什麼？是隨著商業房地產的成熟和重新定價，還是隨著你的成長，隨著時間的推移，與同行保持一致？

I think from a macro perspective, it's probably two things, right? Obviously, the CRE reviews that we do and the migration associated with that has really benefited us from what the loss-given defaults are. So potentially, there's going to be a bit more migration to what that CRE looks like as we go through the rest of the portfolio.

我想從宏觀的角度來看，可能是兩件事吧？顯然，我們所做的 CRE 審查以及與之相關的遷移確實使我們從損失違約中受益。因此，當我們研究產品組合的其餘部分時，可能會有更多的遷移到 CRE 的樣子。

And I think one of the other drivers is really on the C&I side. As we continue to originate more C&I loans, they're going to come at a higher reserve ratio than what the rest of the historical CRE does. So that's automatically going to end up driving up what that coverage ratio looks like.

我認為其他推動者之一確實是在 C&I 方面。隨著我們繼續發放更多的工商業貸款，它們的準備率將高於其他歷史商業房地產的準備率。因此，這最終會自動提高覆蓋率。

Got you. Okay. And then just wondering about the potential to accelerate some of this reduction in concentration. You obviously moved some stuff out of CRE at par this quarter. And obviously, it seems like there's been some opportunity on the commercial side.

明白你了。好的。然後只是想知道是否有可能加速濃度的降低。顯然，您本季按標準從 CRE 中移除了一些內容。顯然，商業方面似乎存在一些機會。

We've certainly seen commercial teams moving around, I'd say, given -- to a greater degree, given some of the dislocation in the marketplace, let's say. So I'm just curious, as you think about that, if that's something that you guys are seeing potential there to maybe accelerate this through greater mix shift in the near term.

我想說，考慮到市場中的一些混亂，我們當然已經看到商業團隊在更大程度上移動。所以我很好奇，當你們想到這一點時，你們是否認為這有潛力透過短期內更大的混合轉變來加速這一進程。

I think -- maybe I'll start, if you don't mind, and then I'll turn it over to Tom. But I think one of the constraints that we've always operated in here is what that tangible book value number is, right? And it's really been a focus within the organization to not dilute shareholders through tangible book value transactions, as we mentioned earlier, whether it be through silly M&A transactions that have very long buybacks or through balance sheet restructures.

我想——如果你不介意的話，也許我會開始，然後我會把它交給湯姆。但我認為我們一直在這裡運作的限制之一是有形帳面價值數字是多少，對吧？正如我們前面提到的，無論是透過長期回購的愚蠢併購交易或透過資產負債表重組，不透過有形帳面價值交易稀釋股東權益確實是該組織內部的一個重點。

I mean, we see that today in what's happening with some securities books. We see what's happening with also sales. So I think that's a constraint that we look at to make sure what our alternatives are that we have to make sure that that tangible book value and capital really continue to grow within the organization. That said, we were able to execute a lot at par today.

我的意思是，我們今天在一些證券書籍中看到了這一點。我們也看到了銷售情況。因此，我認為這是我們要考慮的限制，以確保我們的替代方案是什麼，我們必須確保有形帳面價值和資本在組織內真正繼續成長。也就是說，我們今天能夠以標準執行許多任務。

And Frank, in your referencing question regarding deposit-driven commercial teams, we have opportunistically added teams in certain markets, including the Southeast and the North.

弗蘭克，在您提到的有關存款驅動的商業團隊的問題中，我們機會主義地在某些市場（包括東南部和北部）增加了團隊。

Okay. All right. I guess the big -- it just seems like there's a lot of movement. I don't know if maybe some of these things end up being too expensive on the front end of things. Obviously, you guys reduced your expense guide a bit.

好的。好的。我猜是很大的——看起來有很多動作。我不知道其中一些東西是否在前端變得太昂貴。顯然，你們減少了一些費用指南。

Yeah. So I was just curious if maybe there was a significant pickup opportunity here just in the near term. We've obviously seen some other press releases from other places. So I was just curious about anything in the near term of size.

是的。所以我只是好奇短期內是否有一個重要的提振機會。我們顯然已經看到了其他地方的一些其他新聞稿。所以我只是對近期的尺寸感到好奇。

Yeah. Maybe then I misunderstood your question first, and I apologize. I thought you were going a little bit more on the loan side, and I should just deferred to tom right off. Look, I think as we mentioned on the call, we're seeing a lot of growth in that Southeast market.

是的。也許我先誤解了你的問題，我很抱歉。我以為你會在貸款方面多花一點錢，我應該立即聽從湯姆的意見。看，我認為正如我們在電話會議中提到的那樣，我們看到東南市場出現了很大的增長。

So some of the dislocation that you're seeing up here in the Northeast, with people coming with teams, they obviously come at a significant expense. We've looked at some of them. And the marginal cost to bring on some of those deposits, when you combine it with the expense of those teams, we're finding much, much cheaper alternatives elsewhere. And that's where we intend to allocate a lot of our resources to.

因此，你在東北部看到的一些混亂，人們帶著團隊來到這裡，他們顯然付出了巨大的代價。我們已經研究了其中的一些。當你將其中一些存款的邊際成本與這些團隊的費用結合時，我們在其他地方找到了更便宜的替代方案。這就是我們打算分配大量資源的地方。

Got you. Okay. No, that makes sense. Appreciate it.

明白你了。好的。不，這是有道理的。欣賞它。

Emily Lee, KBW.

艾米麗李，KBW。

Yeah, it's Chris. In terms of, Ira, the capital, the $9.8 million by the end of the year and $10 million-plus over the next 12 to 24, how do you get to those numbers? I'm just interested to kind of -- I understand the mechanics of how you would get there. But how did you get, I guess, more importantly to the $10 million-plus? Some of your peers are mid-10s, even $11 million.

是的，是克里斯。就愛爾蘭首都而言，到年底將達到 980 萬美元，在接下來的 12 到 24 年將達到 1000 萬美元以上，你是如何得到這些數字的？我只是感興趣——我了解如何實現這一目標的機制。但我想，更重要的是，你是如何獲得超過 1000 萬美元的呢？你的一些同齡人只有 10 多歲，甚至擁有 1100 萬美元的資產。

Yeah. I think, look, overall, Chris, we've talked a lot about relative to our peers that our allowance and capital ratios. We justified them being slightly below where peers are, understanding that they still need to be higher than where we are today.

是的。我認為，克里斯，總的來說，我們相對於同行已經談論了很多關於我們的津貼和資本比率的問題。我們認為他們略低於同行的水平是合理的，但我們理解他們仍然需要高於我們今天的水平。

So I don't know if your question is on the immediate term or where we view ourselves in the long term. But if you look at that near-term expectation column, all these metrics reflect kind of organic efforts or things on the margin, like what we did this quarter, in terms of selling off certain commercial real estate loans at par.

所以我不知道你的問題是短期的還是長期的。但如果你看一下近期預期欄，所有這些指標都反映了某種有機的努力或邊際的東西，就像我們本季度所做的那樣，在按面值出售某些商業房地產貸款方面。

So there's no significant rash actions that are embedded in the near-term expectation column. And then it's a continuation of those efforts over time that gets you over to the right-hand column. So I'm not sure if that's the answer, but --

因此，近期預期欄中沒有包含重大的魯莽行動。然後，隨著時間的推移繼續這些努力，你就會到達右側的欄位。所以我不確定這是否是答案，但——

Yeah, that helps. Just a follow-up on that. Would there be any situation where you would do like a credit-linked note or some sort of RWA mitigation to accelerate that? You've seen some peers do that with success.

是的，這有幫助。只是對此的後續行動。您是否會在任何情況下需要信用掛鉤票據或某種 RWA 緩解措施來加速這一進程？你已經看到一些同行成功地做到了這一點。

I would say that all RWA optimization opportunities are on the table. And there are certain portfolios that lend themselves more to that than others, but we have a very diverse balance sheet. And we have portfolios like auto and residential that could be good opportunities for transactions like that.

我想說，所有 RWA 優化機會都已擺在桌面上。有些投資組合比其他投資組合更適合這種投資，但我們的資產負債表非常多樣化。我們擁有汽車和住宅等投資組合，這可能是進行此類交易的好機會。

Okay, great. And then maybe just two housekeeping. Do you have -- maybe I missed it -- the CRE concentration metric in the first quarter and then also the quarter-on-quarter change in the criticized classified [special mention]? I know you mentioned a little bit high level, but any specifics there?

好的，太好了。然後也許只是兩次家事服務。你是否有——也許我錯過了——第一季的商業地產集中度指標，以及受到批評的分類[特別提及]的季度環比變化？我知道你提到的水平有點高，但是有什麼具體細節嗎？

Yeah. The CRE ratio is going to be about 464%, so it should be down about 10% from December 31. And Mark [comment] --

是的。 CRE 比率將約為 464%，因此自 12 月 31 日起應下降約 10%。

Yeah. On the migration, as we mentioned, approximately 500 migrated into criticized for the quarter, a little granularity on that disproportionately in office, which should not be a surprise with what's going on in the market today.

是的。關於遷移，正如我們所提到的，本季度大約有 500 人遷移到了受到批評的地方​​，這一點在辦公室中不成比例，這在當今市場上發生的情況下應該不足為奇。

Great. Perfect. Thank you.

偉大的。完美的。謝謝。

Jon Arfstrom, RBC Capital Markets.

喬恩‧阿夫斯特羅姆 (Jon Arfstrom)，加拿大皇家銀行資本市場部。

Hey. Thanks. Good morning. Just a follow up on the last answer to Chris' question.

嘿。謝謝。早安.只是克里斯問題的最後答案的後續。

Are you guys telling us just to expect higher criticized and classified loans each quarter? It sounds like you're doing a deep dive maybe every quarter. But how do you want us to think about what's ahead just to prepare us for that?

你們是在告訴我們每季都會有更高的批評和分類貸款嗎？聽起來你可能每季都會進行一次深入研究。但你希望我們如何思考未來會發生什麼，以便為此做好準備？

This is Mark. Just pointing to what Ira spoke to before, we did a special review on the sensitive asset classes and overall portfolio touching a little over 60% of the portfolio in the first quarter with a focus on rent stabilized and office.

這是馬克。正如 Ira 之前所說，我們對敏感資產類別和整體投資組合進行了特別審查，涉及第一季略高於 60% 的投資組合，重點關注租金穩定和辦公室。

So while we anticipate, because of the high-rate environment, that we will continue to have some migration throughout the year, we do believe that the first quarter migration was elevated because of the focus of the reviews and the percent of the portfolio that was reviewed.

因此，雖然我們預計，由於高利率環境，我們全年將繼續進行一些遷移，但我們確實相信，由於審查的重點以及投資組合的百分比，第一季的遷移有所增加。

Okay. That's helpful. Thank you for that. Mike, can you go over your margin expectations again? I think I heard you say that you feel like the margin's trough and we're going to get a lift in the second quarter. But I just want to make sure I heard that correctly.

好的。這很有幫助。謝謝你。麥克，你能再次超越你的利潤預期嗎？我想我聽到你說你感覺利潤率已經觸底，我們將在第二季得到提振。但我只是想確保我聽到的是正確的。

Yeah. Thanks for asking me a question. I was feeling left out this morning. That's good.

是的。謝謝你問我問題。今天早上我感覺被冷落了。那挺好的。

I don't believe I said the word trough. But let me go back to the first quarter, and then I'll give you the guidance. So generally, the first-quarter results were in line with our expectations on a day-count basis. And the modest headwinds as it relates to net interest income were really the non-interest-bearing deposits and slower loan growth. But those were also offset by some deposit cost reductions that we've spoken about as well, and we continue to look at that.

我不相信我說過「低谷」這個詞。但讓我回到第一季度，然後我會給你指導。整體而言，第一季業績以天數計算符合我們的預期。與淨利息收入相關的溫和阻力實際上是無利息存款和貸款成長放緩。但這些也被我們也談到的一些存款成本降低所抵消，我們將繼續關注這一點。

The guidance being revised slightly down is, again, a function of a starting point with lower non-interest-bearing deposits and, again, a slower loan growth that we talked about, especially when you consider the participations that we've visited about being in the latter part of the first quarter. So that impact isn't in the numbers in the first quarter as much as it will be in the second quarter.

略微下調的指引再次是我們談到的無息存款減少和貸款增長放緩的起點的函數，特別是當你考慮到我們訪問過的參與情況時在第一季度的後半段。因此，這種影響在第一季的數字上不如第二季那麼大。

And then while we did assume fewer Fed cuts -- I would assume most people are doing that -- remember that long-end rates are forecasted to be higher relative to where they were as the start-up point in 12/31. So then on a net basis, the shifting yield curve, whether it's on the higher or the short end, is a modest benefit to us because we're more exposed on the long end.

然後，雖然我們確實假設聯準會降息較少——我假設大多數人都在這樣做——但請記住，長期利率預計將高於 12/31 的起始點。因此，從淨值來看，殖利率曲線的變化，無論是在較高端還是短期端，對我們來說都是適度的好處，因為我們在長期端的風險敞口更大。

Okay. All right. That makes sense to me. Ira, if I heard you correctly, you said with these guidance changes, you still expect relatively consistent PPNR to what you said before these adjustments. Is that right?

好的。好的。這對我來說很有意義。 Ira，如果我沒聽錯的話，您說過，隨著這些指引的變化，您仍然期望 PPNR 與您在這些調整之前所說的保持相對一致。是對的嗎？

Absolutely.

絕對地。

Okay. So it's just-- for us, it's a question of trying to figure out what the provision is. And that's -- and you're just seeing some modest growth in the reserve. PPNR stays the same. Just the geography on the income statement is different. Is that right?

好的。所以對我們來說，這是一個試圖弄清楚該條款是什麼的問題。那就是——你只是看到儲備金略有增長。 PPNR 維持不變。只是損益表上的地理位置不同。是對的嗎？

I think we've tried to give you some guidance as to where those numbers could shake out. But obviously, look, it's market dependent, as Mark said. We've gone through and looked at a lot of the portfolio already.

我認為我們已經嘗試為您提供一些關於這些數字可能變化的指導。但顯然，正如馬克所說，這取決於市場。我們已經瀏覽並查看了許多作品集。

That said, we're going to continue to monitor the portfolio and do the credit reviews. We believe that that's really been a strong point for us in the ability to have the significant reviews that we do as it's driven down to lower loss-given default.

也就是說，我們將繼續監控投資組合併進行信用審查。我們相信，這確實是我們能夠進行重大審查的優勢，因為它可以降低違約損失率。

So it's been part of a hallmark of who we are in actively managing the portfolio and not just waiting for something to happen. So we are all over every single loan that we have and we continue to really be. And as market conditions change, we'll adjust them accordingly.

因此，這是我們積極管理投資組合而不只是等待事情發生的標誌的一部分。因此，我們對我們擁有的每一筆貸款都充滿信心，而且我們仍然如此。隨著市場狀況的變化，我們會隨之調整。

Okay. All right. Thank you, guys. Appreciate it.

好的。好的。感謝你們。欣賞它。

Thank you. Manan Gosalia, Morgan Stanley.

謝謝。馬南‧戈薩利亞，摩根士丹利。

Hey. Good morning. With all the puts and takes on the loan side that you just discussed and given the fixed rate loan repricing and the 40% of loans being floating rate, how should we think about the loan yield expansion from this quarter's levels under a three-rate-cut scenario?

嘿。早安.考慮到您剛才討論的貸款方面的所有看跌期權和認購期權，並考慮到固定利率貸款重新定價和 40% 的貸款為浮動利率，我們應該如何考慮三利率下本季度貸款收益率的擴張——削減場景？

Look, I think you've seen the pace of loan yield growth has slowed as rates have stabilized generally on the front end. So that immediate benefit has kind of played itself out probably. But you do, obviously, have some tailwinds.

聽著，我認為你已經看到貸款收益率成長的速度已經放緩，因為利率在前端總體上趨於穩定。因此，這種直接的好處可能已經發揮出來了。但顯然，你確實有一些順風車。

And we show you -- I think, in the deck, we show that mature increase side. That may be a good kind of guide to help you in terms of what's coming off and then where you're putting things back on. We originated loans.

我們向你展示——我認為，在牌組中，我們展示了成熟的增長面。這可能是一個很好的指南，可以幫助您了解發生了什麼以及如何將其重新安裝。我們發起了貸款。

Loan yields this quarter, still in the high 7s. So the CRE perspective- -- our CRE origination yield was $780 million. So there's still some opportunity to enhance loan yields there.

本季貸款收益率仍處於 7 的高點。因此，從 CRE 的角度來看，我們的 CRE 初始收益率為 7.8 億美元。因此，那裡仍然有一些提高貸款收益率的機會。

All right. I appreciate that. And then you noted that you purchased some Ginnies this quarter. Is there more room to do that? And how should we think about the level of on-balance-sheet liquidity that you want to manage to over the next few quarters?

好的。我很感激。然後您注意到您本季度購買了一些吉尼斯紙幣。還有更多空間可以做到這一點嗎？我們應該如何考慮未來幾季您希望管理的資產負債表內流動性水準？

So the Ginnie Mae purchases, obviously, they're zero risk-weighted. They average about three to four years. And the yield on that portfolio -- on recent purchases, I should say, have been in the 5%, slightly more than 5% range.

因此，吉利美的購買顯然是零風險加權的。他們平均大約三到四年。我應該說，最近購買的投資組合的收益率一直在 5% 左右，略高於 5%。

The runoff on the portfolio, there's really no prepayment. So it's going to be just the stated maturity payoffs run around $75 million to $90 million a quarter. And we would continue to add, we believe, in zero risk-weighted Ginnies at probably 5% to 5.5% yields.

投資組合的徑流，實際上沒有預付款。因此，每季規定的到期收益將達到 7,500 萬至 9,000 萬美元左右。我們相信，我們將繼續增加零風險加權吉尼債券，收益率可能為 5% 至 5.5%。

Got it, sir. In terms of the on-balance-sheet liquidity you need to maintain from here, is there room for that to move up? Or do you think you're at the right level? I ask in context of -- you also mentioned that the LDR should trend below 100% in 2025. So I just want to get a sense of what the right level of liquidity is.

明白了，先生。就目前需要維持的表內流動性而言，是否有上升的空間？還是你認為你處於正確的水平？我問的背景是——您還提到 LDR 到 2025 年應該會低於 100%。 所以我只是想了解什麼是合適的流動性水平。

I want to make sure I'm answering -- you're referring specifically to, say, FHLB or Federal Reserve availability.

我想確保我的回答是——你具體指的是 FHLB 或美聯儲的可用性。

I think, overall, you're probably going to see a little bit more on-balance-sheet liquidity not to a significant degree, but the part of getting the loan-to-deposit ratio down to 100% will definitely be a little bit of the core deposits coming on and being reinvested in securities as opposed to going into loans. But I don't think you really need to look at a significant shift within what that securities book looks like.

我認為，總體而言，您可能會看到表內流動性增加，但程度不會太高，但貸存比降至 100% 的部分肯定會有所增加。於證券而不是貸款。但我認為你真的不需要考慮證券帳簿的外觀發生重大變化。

Got it. Yeah, that's what I was getting to. Thank you.

知道了。是的，這就是我想要的。謝謝。

Thank you. Jared Shaw, Barclays.

謝謝。賈里德·肖，巴克萊銀行。

Hey. Good morning. Thanks. Looking at the CRE sales that you did this quarter, being able to do those at par is great. I guess that's a little surprising though, just given where rates are, that there wasn't even like a rate mark on there. Could you give any detail on the term and yield of the type of loans that we sold and if there was any retained credit participation on that?

嘿。早安.謝謝。看看您本季的商業房地產銷售情況，能夠實現這些目標就很棒了。我想這有點令人驚訝，只是考慮到利率的位置，那裡甚至沒有利率標記。您能否詳細說明我們出售的貸款類型的期限和收益率，以及是否有任何保留的信貸參與？

Yeah. It's Tom here. These were participations for the most part. Those participation rates range probably from, I think, 7.4%. On the fixed side was 7.4% to 7.5%. They were all participated at par. We retained a portion as lead bank on those. On the floating side, they were mostly prime-plus construction loans. And again, we retained a position in those.

是的。湯姆在這裡。這些大部分都是參與。我認為這些參與率的範圍可能是 7.4%。固定方面為7.4%至7.5%。他們都以平價參加。我們保留了一部分作為這些項目的牽頭銀行。在浮動方面，它們大多是優質建築貸款。我們再次在這些領域保留了自己的地位。

I think that last point is pretty important, too, because we're preserving the customer relationships. And as you heard Ira said in the prepared remarks, I mean, CRE's a very valuable asset class will remain in it. We have a deep pool of high-quality commercial real estate borrowers, but there are ways that we can balance the need to manage the balance sheet with preserving and building those customer relationships.

我認為最後一點也非常重要，因為我們正在維護客戶關係。正如你聽到 Ira 在準備好的演講中所說的那樣，我的意思是，CRE 的一個非常有價值的資產類別將保留在其中。我們擁有大量高品質的商業房地產借款人，但我們可以透過一些方法來平衡管理資產負債表的需求與維護和建立這些客戶關係。

Okay. Thanks. And then following up, what's the expectation for deposit growth from here? And then as we look at some of the promotional products that are rolling off, where are you seeing those coming on? Where is the new product coming in terms of term and price?

好的。謝謝。那麼接下來，對存款成長的預期是什麼？然後，當我們看到一些即將推出的促銷產品時，您在哪裡看到這些產品？新產品的期限和價格如何​​？

While we've continued to have the non-interest-bearing rotation, one of the really bright spots has been the growth in savings and now, which is more than offset what we've lost in non-interest-bearing or rotated into non-interest or out of non-interest-bearing into other products. And the growth in our niche businesses has been very strong as well.

雖然我們繼續進行無息輪換，但真正的亮點之一是儲蓄的增長，現在，這足以抵消我們在無息輪換或輪換為無息貸款方面的損失。我們的利基業務的成長也非常強勁。

And maybe a harbinger of or an indicator of the future growth and the strength there is just in the first quarter alone. On a net basis, we added over 3,000 net new deposit accounts. So we felt pretty good. What I'm telling you is I think the growth is going to come out of the niche businesses and the continued efforts in our retail branches to grow households. And to the extent that we could see a flattening of rotation of non-interest-bearing, that's only going to help us.

也許僅第一季就預示著未來的成長和實力。以淨額計算，我們新增淨存款帳戶超過 3,000 個。所以我們感覺很好。我要告訴你的是，我認為成長將來自於利基業務以及我們零售部門為擴大家庭規模所做的持續努力。在某種程度上，我們可以看到無息輪換趨於平緩，這只會對我們有所幫助。

Maybe, Jared, I'll add just two different pieces to that. Last call, we talked about -- at least me, specifically -- some of the disappointment I had in where the funding costs have gone within the organization. So we were very proactive in going out and looking at $10 billion of different deposit products across the organization and lowering those from a 40 basis points.

賈里德，也許我會添加兩個不同的部分。上次通話時，我們談到了——至少是我，特別是——我對組織內部的資金成本所感到的一些失望。因此，我們非常積極地走出去，研究整個組織內 100 億美元的不同存款產品，並將這些產品的利率從 40 個基點降低。

And that did not happen in the first period, assuming the first month of the quarter, but it happened throughout the quarter. So we think there's going to be some tailwind associated with that as we continue to think about deposit cost.

假設該季度​​的第一個月，這種情況並沒有發生在第一個時期，但它發生在整個季度。因此，我們認為，當我們繼續考慮存款成本時，將會有一些與之相關的順風車。

That said, the new originations came on very, very strong in deposits for the quarter. The cost was only 3.23% and there's well over $1 billion of net new originations that came in. And obviously, some of that offset some of the higher cost time deposits that Tom met or someone that Mike mentioned that ran off.

也就是說，本季新存款的存款量非常非常強勁。成本僅為 3.23%，而且淨新發起資金遠遠超過 10 億美元。

So I think we've done a really good job bringing in newer deposits into the organization at a much lower cost than what marginal cost of some of the current deposits that we have here. And we've also been able to be very successful in bringing down some of the cost of deposits that's sitting on the book right now. So we believe that there's a lot of tailwind associated with that.

因此，我認為我們做得非常好，以比我們現有的一些現有存款的邊際成本低得多的成本將新存款引入組織。我們也非常成功地降低了目前帳面上的一些存款成本。所以我們相信這有很多有利因素。

Great. Thank you.

偉大的。謝謝。

Thank you. Steve Moss, Raymond James.

謝謝。史蒂夫·莫斯，雷蒙德·詹姆斯。

Good morning. Following up on deposits here. Just curious, when did you guys reduce deposit rates by 40 basis points in the quarter?

早安.在這裡跟進存款。只是好奇，你們什麼時候在本季將存款利率降低了 40 個基點？

There were tranches of deposit classes that we reduced beginning February 1 and then continuing through parts of March.

我們從 2 月 1 日開始減少了部分存款類別，並持續到 3 月的部分時間。

Okay. And so just, I guess basically, the idea is to see how they hold. And if we stay in the current rate environment, will you continue to press for additional deposit rate cuts?

好的。所以，我想基本上，我們的想法是看看它們如何保持。如果我們維持目前的利率環境，您會繼續敦促進一步降低存款利率嗎？

Yes. We manage it weekly. We look at the levels, and we have not seen any significant change in those levels from the groups that we reduced. Okay.

是的。我們每週管理一次。我們查看了這些水平，我們沒有看到我們減少的組別的這些水平有任何顯著變化。好的。

Okay. I appreciate that. And then in terms of -- on credit here, with the deep dive you guys took on the specific portfolios, you guys mentioned that you examine the office portfolio had migration there. Just curious, what is the specific reserve for office?

好的。我很感激。然後就信用而言，透過你們對特定投資組合的深入研究，你們提到你們檢查了辦公室投資組合是否有遷移。只是好奇，辦公室的具體儲備是多少？

And then also along those lines, just curious, are you looking apparently at the specific properties? Or are you looking at the borrowers' global cash flows? I'm just kind of curious as to how those global cash flows are holding up these days.

然後，沿著這些思路，只是好奇，您是否明顯在關注特定屬性？還是您正在關注借款人的全球現金流？我只是有點好奇這些天全球現金流的狀況如何。

No, absolutely. Let me address the end of the question. Yeah, as part of our standard credit process, we look at not only the property that we finance, but the overall global cash flow of any of the developers that we do business with to get that overall view to see if not stress in our property, are there stress in this global or vice versa, strength in the global cash flow, and weakness in property.

不，絕對是。讓我談談問題的結尾。是的，作為我們標準信貸流程的一部分，我們不僅關注我們融資的房產，還關注與我們有業務往來的任何開發商的全球整體現金流，以獲得整體視圖，看看我們的房產是否有壓力，全球是否有壓力，反之亦然，全球現金流是否強勁，而房地產是否疲軟。

All of those factors go into the risk rating and the migration in portfolio. We don't publish a separate office reserve. But as I mentioned earlier, we have a substantially higher level of reserves for criticized assets. And there is an elevated level of criticized assets in our office portfolio.

所有這些因素都會影響風險評級和投資組合的遷移。我們不公佈單獨的辦公室儲備。但正如我之前提到的，我們對受批評的資產有更高水準的準備金。我們的辦公大樓投資組合中受到批評的資產數量也有所增加。

And the only thing I just want to add to that is many of our customers are in multiple classes of assets, not just in a single class.

我唯一想補充的是，我們的許多客戶都擁有多種資產類別，而不僅僅是單一類別。

Right. And maybe just in terms of the office portfolio, I think it was $150 million or $160 million. I forget the debt service [cards] ratio right now. But like are a lot of those borrowers in the current environment headed towards one? Just kind of curious as to how much capital a borrower might have to put up to kind of rightsized those loans these days.

正確的。也許僅就辦公室投資組合而言，我認為是 1.5 億美元或 1.6 億美元。我現在忘記還本付息[卡]比率。但在當前環境下，許多藉款人是否都朝著這種方向發展呢？只是有點好奇現在藉款人可能需要投入多少資金來調整這些貸款的規模。

Yeah. I think you see the granularity in the portfolio with a $3 million average loan size in that. We do look in the individual cases with migrated. Clearly, there was stress in debt service coverage on those assets, necessitating the downgrade. But historically, our leverage on office assets and our going-in coverage was exceptionally strong to long-term customers that we have relationships with, which we also believe assist in the overall performance of that portfolio in the long run.

是的。我認為您可以看到投資組合的粒度，平均貸款規模為 300 萬美元。我們確實會研究遷移的個案。顯然，這些資產的償債能力有壓力，因此需要下調評級。但從歷史上看，我們對辦公資產的槓桿作用和我們的進入覆蓋範圍對於與我們有關係的長期客戶來說異常強大，我們也相信從長遠來看這有助於該投資組合的整體表現。

Steve, we showed the average loan size. I mean, I like to indicate the granularity and diversity of the portfolio. But in reality, to your last question -- and it doesn't apply just to offices, but I think across the portfolio, given our average loan size.

史蒂夫，我們展示了平均貸款規模。我的意思是，我喜歡表明投資組合的粒度和多樣性。但實際上，對於你的最後一個問題，它不僅適用於辦公室，而且考慮到我們的平均貸款規模，我認為整個投資組合都適用。

When a borrower does need to bring additional cash reserves or equity into a deal, these are low average loan sizes that require less in terms of absolute dollars to rightsize things. And I think that's a benefit and a component of the loss mitigation and credit management.

當借款人確實需要在交易中帶來額外的現金儲備或股權時，這些平均貸款規模較低，需要較少的絕對美元來調整規模。我認為這是一個好處，也是減少損失和信用管理的一個組成部分。

Okay. And maybe just one more related to commercial real estate office. Where you're seeing the migration, is it in your larger loans these days? Or is it across the board?

好的。也許還有一個與商業地產辦公室相關的。您現在看到的這種遷移是在您的大額貸款中嗎？或者說是一刀切的嗎？

So I would say from -- it's really more geographically focused. So our largest percentage of office is in the Florida, Alabama market. And we've seen much lower level of migration in that portfolio, with the majority of migration in the Northeast and the New Jersey and New York marketplace but noting that our Manhattan exposure is quite granular and quite small in that.

所以我想說的是——它確實更注重地理。因此，我們最大比例的辦事處位於佛羅裡達州和阿拉巴馬州市場。我們看到該投資組合中的移民水平要低得多，大部分移民集中在東北部、新澤西州和紐約市場，但我們注意到，我們在曼哈頓的風險敞口非常細化，而且規模很小。

Okay. Appreciate that. And then just stepping back from things here, Ira. I was just curious here with the plan to reduce commercial real estate concentrations. It might not be easy to do a deal today. But just curious as to how the shift is changing your thinking on the M&A front?

好的。感謝。然後就從這裡退一步，艾拉。我只是對減少商業房地產集中度的計劃感到好奇。今天達成交易可能並不容易。但只是想知道這種轉變如何改變您在併購方面的想法？

Look, I think this is the strategic initiatives and plan that we've outlined for a couple of years now. So I think we're just looking at accelerating some of the things that we're doing. If there's an M&A opportunity that helps accelerate some of the strategic initiatives, we're definitely something we would look at.

看，我認為這是我們幾年來概述的策略舉措和計劃。所以我認為我們只是在考慮加速我們正在做的一些事情。如果有併購機會有助於加速某些策略舉措，我們肯定會考慮。

That said, the guardrails around tangible book value are real to me. So obviously, the valuation in today's market limits the ability to do some of that. But M&A that really accelerates strategic initiatives is something that's definitely -- that we are, as an organization, are open to.

也就是說，圍繞有形帳面價值的護欄對我來說是真實的。顯然，當今市場的估值限制了這樣做的能力。但真正加速戰略舉措的併購是我們作為一個組織絕對願意接受的。

Okay, great. Appreciate all the color. Thank you.

好的，太好了。欣賞所有的顏色。謝謝。

Thank you. David Chiaverini, Wedbush Securities.

謝謝。大衛‧基亞維里尼 (David Chiaverini)，韋德布希證券公司 (Wedbush Securities)。

Hi. Thanks. I wanted to follow up on expenses. It looks like we could see a decent reduction here. Could you talk about what areas you're pulling back on and any initiatives that are getting pushed to the back burner?

你好。謝謝。我想跟進費用。看起來我們可以在這裡看到相當大的減少。您能否談談您正在撤回哪些領域以及哪些計劃被擱置？

I think from a macro perspective, obviously, there's going to be less activity in volume in certain loan classes. So there's probably going to be some continued reduction in those specific areas. But I think a large piece of it goes back to what we talked about last quarter.

我認為從宏觀角度來看，顯然某些貸款類別的交易量將會減少。因此，這些特定領域可能會持續減少。但我認為其中很大一部分可以追溯到我們上個季度討論的內容。

The core conversion that we had here took significant resources from an internal perspective and from an external perspective. And as we continue to get the benefits of migrating onto one core platform, we do believe that there's going to be some sales from that, definitely not to the degree.

我們在這裡進行的核心轉換從內部角度和外部角度都佔用了大量資源。隨著我們繼續獲得遷移到一個核心平台的好處，我們確實相信這將會帶來一些銷售，但絕對不會達到這個程度。

I think that we saw the and traction from last year to now. But that said, we do think that there's opportunity on the expense side of the book.

我認為我們從去年到現在都看到了這種勢頭和吸引力。但話雖如此，我們確實認為這本書的費用方面存在機會。

Maybe to give you an example to hopefully make this real, prior to conversion, core conversion, we ran on three separate GL systems and we had two different core systems. We've closed the books this quarter the fastest we've done in the time that I've been at Valley. So that's a good example of showing the efficiency in the core conversion and how it has ancillary benefits that kind of spill through the whole organization.

也許給你一個例子，希望讓這成為現實，在轉換、核心轉換之前，我們在三個獨立的 GL 系統上運行，並且有兩個不同的核心系統。本季我們結帳的速度是我在 Valley 以來最快的。因此，這是一個很好的例子，展示了核心轉換的效率以及它如何具有透過整個組織溢出的附帶好處。

Thanks for that. And I also want to follow up on the question on liquidity. I guess to put a finer point on it. Cash and securities as a percent of assets was 11%. Should we expect that 11% kind of trend higher here over time?

感謝那。我還想跟進流動性問題。我想應該說得更詳細。現金和證券佔資產的百分比為11%。我們是否應該預期隨著時間的推移，這裡會出現 11% 的上漲趨勢？

Yeah. I think slowly over time, directionally, that makes sense; but I don't think there's any bulk action that's going to occur at any point. I mean, that's just a general direction. We've trended higher, if you look back over the last couple of years, and we'll continue to do so.

是的。隨著時間的推移，我慢慢地、有方向地思考，這是有道理的；但我認為任何時候都不會發生任何批量行動。我的意思是，這只是一個大方向。如果你回顧過去幾年，我們的趨勢是走高的，而且我們將繼續這樣做。

We have a very stable deposit base. It's very granular. And so we think we're well positioned as it is today. But just directionally, too, as we grow, we will continue to have more cash and securities.

我們擁有非常穩定的存款基礎。它非常細粒度。因此，我們認為我們今天處於有利地位。但也只是方向性的，隨著我們的成長，我們將繼續擁有更多的現金和證券。

Thanks very much.

非常感謝。

Thank you. Ben Gerlinger, Citi.

謝謝。班傑林格，花旗銀行。

Hey. Good afternoon, everyone. Slide 12 and 13, the debt service coverage ratios, were really helpful. A modest migration is one to be expected. Is it fair to say that all of those now include 2023 manuals? Are we still waiting on a little bit? I'm just trying to look for the most up-to-date type ratio there.

嘿。大家下午好。幻燈片 12 和 13 的償債覆蓋率確實很有幫助。適度的遷移是可以預料的。可以公平地說現在所有這些都包含 2023 年手冊嗎？我們還會等一下嗎？我只是想在那裡尋找最新的類型比率。

On a large portion of our portfolio, we do have updated current rent roll information. I don't believe 100% of them, though, we had clearly include 2023 numbers. And we think that in all asset classes other than office, we've seen strength in NOI growth.

對於我們投資組合的很大一部分，我們確實更新了當前的租金資訊。不過，我並不 100% 相信其中的內容，但我們明確地包含了 2023 年的數字。我們認為，在辦公大樓以外的所有資產類別中，我們都看到了 NOI 成長的強勁勢頭。

Got you. And then I noticed the multi-family down here in the Southeast. The Florida, Alabama came down a decent amount quarter over quarter. Any commentary on that?

明白你了。然後我注意到東南部的多戶家庭。佛羅裡達州、阿拉巴馬州的季度環比下降了相當大的幅度。對此有何評論？

Ben, we'll go back and take a look at the number. You mean, the debt service coverage came down?

本，我們回去看看這個數字。你的意思是，償債覆蓋率下降了？

Yeah. It went from basically --

是的。它基本上是從——

Yeah. It also happens to be the same number -- no. I'll go back and take a look at it because it happens to be the same number as the row above. And so I'll take a look at it and get back to everyone.

是的。它也恰好是同一個數字——不。我會回去看一下，因為它恰好與上面一行的數字相同。所以我會看一下並回覆給大家。

Yeah, okay. And then lastly -- I know it's been a long call, and I apologize if you're going to repeat yourself, but did you guys give a monthly or an exit spot rate on deposit costs?

好的。最後——我知道這是一個漫長的電話，如果你要重複的話，我很抱歉，但是你們是否給出了存款成本的月度利率或退出即期利率？

We did not give a spot rate. You can see in the IP that the total deposit costs went from 3.13% to 3.16%, so they're up 3 basis points.

我們沒有給出即期匯率。您可以在 IP 中看到總存款成本從 3.13% 上升到 3.16%，因此上升了 3 個基點。

A lot of the deposit costs [changing].

很多存款成本[改變]。

Thanks.

謝謝。

Thank you. Matthew Breese, Stephens Inc.

謝謝。馬修·布里斯，史蒂芬斯公司

Hey. I had just two quick follow-ups. The first one was just on the taxi medallion charge-off. What happened there? Was that part of the credit review? It just seems like a fairly big charge given how far away we are from the height of the tax medallion days. What's the remaining balance on that portfolio?

嘿。我只有兩次快速跟進。第一個是關於出租車牌照扣押的。那裡發生了什麼事？這是信用審查的一部分嗎？考慮到我們距離稅收獎章的鼎盛時期還有多遠，這似乎是一筆相當大的費用。該投資組合的剩餘餘額是多少？

The remaining balance, we have $52 million left in portfolio that's fully reserved down to current market prices. For the charge-off that we experienced this quarter, that was also fully reserved for.

剩下的餘額，我們在投資組合中還有 5,200 萬美元，完全以當前市場價格保留。對於我們本季經歷的沖銷，這也是完全保留的。

It was one relationship of a customer who had been paying. We were in a long-term negotiation and kind of hit a standstill. Subsequent to the charge-off, we have entered into a forbearance agreement, and that loan has continued to pay.

這是一種一直在付款的客戶關係。我們正在進行長期談判，但陷入了僵局。沖銷後，我們簽訂了暫緩協議，該貸款繼續支付。

Great. Okay. And then just in light of a slower loan growth outlook, could you just stack order for us capital deployment priorities? And I'm really curious if share repurchases become part of the plan here, even a little bit. The other thing is understanding, Ira, your comments on M&A, would FDIC-assisted deals be something you look at should they arise? That's all I had. Thank you.

偉大的。好的。然後，鑑於貸款成長前景放緩，您能否為我們的資本部署優先事項安排順序？我真的很好奇股票回購是否成為這裡計畫的一部分，哪怕只是一點點。另一件事是了解 Ira，您對併購的評論，如果出現 FDIC 協助的交易，您是否會考慮這些交易？這就是我所擁有的一切。謝謝。

Look, I think from a capital deployment perspective, allocating capital to growing the CRE book is probably not going to happen here. There's ample opportunity internally just to serve our current CRE clients. So I think that's probably where more of the focus would end up being.

看，我認為從資本部署的角度來看，分配資本來擴大企業房地產的規模在這裡可能不會發生。內部有充足的機會為我們目前的商業房地產客戶提供服務。所以我認為這可能是更多關注的焦點。

But once again, we are seeing strong C&I growth, and we have for a couple of years now. So allocating capital to those specific segments seems to be a much better return to us today. From an M&A perspective, I think once again, if it's something that's strategic and makes sense, we will look at it. But once again, the guardrail's around intangible book value, and some of that's significant to me.

但我們再次看到工商業的強勁成長，而且已經持續了幾年了。因此，今天將資本分配給這些特定領域似乎對我們來說是更好的回報。從併購的角度來看，我再次認為，如果這是一個具有戰略意義且有意義的事情，我們會考慮它。但再一次，護欄的價值是無形的帳面價值，其中一些對我來說很重要。

That's all I had. Thank you.

這就是我所擁有的一切。謝謝。

I am showing no further questions at this time. I will now turn it over to Ira Robbins for closing remarks.

我目前沒有提出任何進一步的問題。現在我將把它交給艾拉羅賓斯（Ira Robbins）做總結發言。

Thanks. I just want to thank everyone for taking the time to listen to us today. And I look forward to speaking to you next quarter. Have a nice day.

謝謝。我只想感謝大家今天抽出時間來聽我們的演講。我期待下個季度與您交談。祝你今天過得愉快。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。