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Operator
Operator
Good day. And thank you for standing by. Welcome to the second-quarter 2024 Valley National Bancorp earnings conference call. (Operator Instructions) Please be advised that today's conference is recorded.
再會。感謝您的支持。歡迎參加 Valley National Bancorp 2024 年第二季財報電話會議。 (操作員說明)請注意,今天的會議已錄製。
I would now like to turn the conference over to your speaker for today, Travis Lan. Please go ahead.
現在我想將會議交給今天的發言人 Travis Lan。請繼續。
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Good morning. And welcome to Valley's second-quarter 2024 earnings conference call. Presenting on behalf of Valley today are CEO, Ira Robbins; President, Tom Iadanza; and Chief Financial Officer, Mike Hagedorn.
早安.歡迎參加 Valley 2024 年第二季財報電話會議。今天代表 Valley 發言的是執行長 Ira Robbins;主席:湯姆·伊丹扎;和財務長邁克·哈格多恩。
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. 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。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的 SEC 文件,包括表格 8-K、10-Q 和 10-K 中的文件,以完整討論前瞻性陳述以及可能導致實際結果與這些陳述不同的因素。
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。
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Thank you, Travis. During the second quarter of 2024, Valley reported net income of $70 million and diluted earnings per share of $0.13. The sequential reduction in net income was a result of stable pretax pre-provision net revenue, supported by the positive inflection in net interest income and the elevated loan loss provision. While this provision is outside our normal range, we believe that this quarter will represent the relative peak in our provisioning.
謝謝你,崔維斯。 2024 年第二季度,Valley 報告淨利潤為 7,000 萬美元,稀釋後每股收益為 0.13 美元。淨利環比下降是由於稅前撥備前淨收入穩定,並受到淨利息收入正向變化和貸款損失撥備增加的支持。雖然這項撥備超出了我們的正常範圍,但我們相信本季將代表我們撥備的相對高峰。
Last quarter, I outlined the planned acceleration of our strategic initiatives aimed at normalizing certain balance sheet metrics, which are outliers to peers. I am extremely pleased with the significant progress that we have quickly made relative to each of our state of balance sheet goals. Importantly, we have begun to execute on these initiatives without diminishing our future earnings capacity. In fact, we believe that the further strengthening of our balance sheet will drive stability in our performance and relative value in the market.
上個季度,我概述了我們計劃加速實施的策略性舉措,旨在使某些資產負債表指標正常化,這些指標與同業相比是異常值。我對我們在每個資產負債表目標方面迅速取得的重大進展感到非常高興。重要的是,我們已經開始執行這些舉措,而不會削弱我們未來的獲利能力。事實上,我們相信,資產負債表的進一步加強將推動我們的績效和市場相對價值的穩定。
Our progress is illustrated in detail on slide 4. By the end of the second quarter, both our CRE concentration and allowance coverage ratios have already reached the year-end expectations that we laid out just three months ago. By limiting our investor CRE and multifamily originations and reclassifying certain health care loans to the owner-occupied bucket, we were able to reduce our commercial real estate concentration ratio to our full year 2024 target of around 40%.
我們的進展在幻燈片4中有詳細說明。透過限制我們的投資者 CRE 和多戶住宅的來源,並將某些醫療保健貸款重新分類到自住類別,我們能夠將商業房地產集中度降低到 2024 年全年 40% 左右的目標。
With the backdrop of strong credit performance and stable past due and nonaccrual loan metrics during the quarter, our reserve coverage expanded to our near-term targeted level of above 1%. We now anticipate reaching our intermediate term expectation of around 1.10% by the end of 2024. To be clear, there is no change to our belief that a coverage ratio of about 1.10% is appropriate for our risk profile given our analysis of the portfolio and current backdrop.
在本季信貸表現強勁、逾期和非應計貸款指標穩定的背景下,我們的準備金覆蓋率擴大至 1% 以上的近期目標水準。我們現在預計到 2024 年底將達到 1.10% 左右的中期預期。
This quarter's elevated provision in the context of strong credit performance was the result of our conservative decision to place less value on personal guarantees as a mitigating factor in our internal loan risk ratings. This shift drove additional loan downgrades into our criticized and classified buckets, which each carry higher reserve requirements under our methodology. Our criticized and classified loans continue to perform and remain current with regards to payment activity.
本季在信貸表現強勁的背景下撥備增加,是由於我們保守地決定降低個人擔保的價值,作為我們內部貸款風險評級的緩解因素。這一轉變導致更多的貸款降級進入我們批評和分類的類別,根據我們的方法,每個類別都有更高的準備金要求。我們受到批評和分類的貸款繼續履行並在付款活動方面保持最新狀態。
While this conservative approach to personal guarantees is reasonable given the current market environment, we continue to believe personal guarantees are useful in influencing borrower behavior and in cases of stress. These guarantees have proven very useful in limiting charge-offs and enhancing recoveries throughout our history. For this reason, we anticipate that in practice, personal guarantees will continue to be valuable in minimizing the loss content of our portfolio going forward.
雖然考慮到當前的市場環境,這種對個人擔保的保守做法是合理的,但我們仍然認為個人擔保在影響借款人行為和應對壓力情況下很有用。事實證明,在我們的歷史中,這些保證對於限制沖銷和提高回收率非常有用。因此,我們預計,在實踐中,個人擔保將繼續在最大限度地減少我們投資組合的損失內容方面發揮重要作用。
Turning to capital. Our risk-based ratios improved meaningfully during the quarter despite strong non-CRE balance sheet growth and only modest retained earnings. This growth was primarily the result of a synthetic risk transfer, which we executed during the quarter. This transaction reduced the risk-weighted assets associated with our indirect auto loan business by approximately $1 billion. We remain very comfortable with our regulatory capital levels and the significant expansion we have generated on both a quarter-over-quarter and year-over-year basis.
轉向資本。儘管非商業房地產資產負債表成長強勁且留存收益不大,但我們的風險比率在本季度顯著改善。這一增長主要是我們在本季度執行的綜合風險轉移的結果。這項交易使我們與間接汽車貸款業務相關的風險加權資產減少了約 10 億美元。我們對我們的監管資本水平以及我們季度環比和同比的顯著擴張仍然感到非常滿意。
Slide 6 lays out our expectations for the remainder of 2024. We anticipate low single-digit annualized loan growth for the rest of the year. Consistent with this quarter's strong results, future loan growth will likely be tilted towards C&I and owner-occupied CRE as new investor CRE originations remain well controlled. We anticipate that this growth and the continued repricing of existing assets will support up to 3% growth in net interest income on a quarterly basis for the rest of the year.
幻燈片 6 列出了我們對 2024 年剩餘時間的預期。與本季的強勁業績一致,由於新投資者 CRE 的來源仍得到良好控制,未來的貸款成長可能會向 C&I 和自住型 CRE 傾斜。我們預計,這種成長以及現有資產的持續重新定價將支持今年剩餘時間淨利息收入按季度增長高達 3%。
Noninterest income should recover from current levels as capital markets activity picks up, and we continue to expand our treasury management capabilities. Noninterest expense remains well controlled, that we will see a full quarter's impact of the premium expense associated with our risk trade in the third and fourth quarters. Our tax rate is likely to come in between 25% and 26% for the rest of the year.
隨著資本市場活動的回升,非利息收入應該會從當前水準恢復,並且我們將繼續擴大我們的資金管理能力。非利息費用仍然受到良好控制,我們將在第三和第四季度看到與風險交易相關的溢價費用對整個季度的影響。今年剩餘時間裡,我們的稅率可能會在 25% 到 26% 之間。
From a credit perspective, net charge-offs are likely to remain around current levels for the rest of the year. However, I will reiterate that we are confident our provision has peaked and that a level between the first and second quarter's provision is a more reasonable quarterly expectation for the remainder of the year. These expectations, combined with our loan growth outlook implies we will end the year with an ACL to loan ratio of around 1.10%.
從信貸角度來看,今年剩餘時間淨沖銷可能會保持在目前水準附近。不過,我要重申,我們有信心我們的撥備已達到頂峰,並且第一季度和第二季度撥備之間的水平是今年剩餘時間的更合理的季度預期。這些預期,加上我們的貸款成長前景,意味著我們年底 ACL 與貸款的比率將達到 1.10% 左右。
Before turning the call over to Tom, I wanted to highlight the underlying franchise value that we continue to create at Valley. Since the end of 2017, we have grown reportable tangible book value by 47% versus 36% for our regional banking peers. Including the impact of distributed dividends, this increases to 93% growth versus 70%, respectively. This variance reflects our ability to enhance our franchise value without meaningfully diluting tangible book value and overpriced acquisitions or to other aspects to maximize near-term results.
在將電話轉給 Tom 之前,我想強調我們在 Valley 繼續創造的潛在特許經營價值。自 2017 年底以來,我們的可報告有形帳面價值增加了 47%,而區域銀行同業的增幅為 36%。考慮到股利分配的影響,此成長率分別增至 93% 和 70%。這種差異反映了我們在不顯著稀釋有形帳面價值和定價過高的收購或其他方面以最大化近期業績的情況下提高特許經營價值的能力。
Customer account growth is another key metric that gauges our ability to build and optimize our franchise value. Commercial deposit account growth remained strong during the quarter, and our stable deposit levels on a quarterly average balance indicates significant stability despite some late quarter movement that temporarily impacted spot balances at the end of the quarter. Average balances in July have rebounded, which further underpins our confidence that net interest income growth will continue.
客戶帳戶成長是衡量我們建立和優化特許經營價值的能力的另一個關鍵指標。本季商業存款帳戶成長依然強勁,儘管季度末的一些波動暫時影響了季末的現貨餘額,但我們的季度平均餘額穩定的存款水準表明了顯著的穩定性。 7月平均餘額回升,進一步增強了我們對淨利息收入持續成長的信心。
We also believe that there is significant value in the geographic diversity that we have developed on both the asset and liability side 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 50% today as a result of our focus in Florida and other dynamic commercial markets. We continue to develop exceptional service-oriented banking teams across the country, which are focused on generating and enhancing valuable commercial relationships that we have targeted.
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 50%。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。
Meanwhile, at the end of 2017, 78% of our deposits were in Northeast branches. As of the end of the second quarter, that number has declined to just 43%. We have diverse funding niche 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 reduce our reliance on wholesale funding over time.
同時,截至2017年底,我們78%的存款分佈在東北分行。截至第二季末,這一數字已降至 43%。我們擁有多元化的融資利基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,並提供獨特且差異化的機會,以減少我們對批發資金的依賴。
In conclusion, I am extremely pleased with the progress that we've already made towards achieving our stated balance sheet goals. We continue to work hard to further position ourselves for growth and high performance as the environment normalizes. I am confident that given what we know our provision has already peaked with continued net interest income momentum, fee normalization, and expense control, we expect that our earnings will expand throughout the rest of the year and set us up for continued improvement in 2025.
總之,我對我們在實現既定資產負債表目標方面所取得的進展感到非常滿意。隨著環境的正常化,我們將繼續努力,進一步實現成長和高績效。我相信,鑑於我們所知,隨著淨利息收入的持續增長、費用正常化和費用控制,我們的撥備已經達到頂峰,我們預計我們的收入將在今年剩餘時間內擴大,並為我們在2025年的持續改善做好準備。
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 Saeger, 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。在麥克結束演講後,湯姆、麥克、我本人以及我們的首席信貸官馬克·賽格 (Mark Saeger) 將回答您的問題。
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Thank you, Ira. Slide 9 illustrates the quarter's deposit trends. Total deposits increased $1 billion compared to the first quarter, largely due to higher levels of indirect deposits. Meanwhile, customer balances, including on the noninterest-bearing side, were generally stable throughout the quarter. This stability enabled us to largely hold the line for the third consecutive quarter from a pricing perspective.
謝謝你,艾拉。投影片 9 顯示了本季的存款趨勢。總存款較第一季增加 10 億美元,主要是因為間接存款水準較高。同時,整個季度的客戶餘額(包括無息客戶餘額)整體保持穩定。從定價角度來看,這種穩定性使我們能夠連續第三個季度基本上保持穩定。
The next slide provides more detail on the composition of our deposit portfolio by delivery channel and business line. Growth trends in our specialty commercial verticals and private banking business was strong during the quarter and partially mitigated late quarter runoff in branch deposits. Average deposit balances in July are running higher than second quarter levels as customer activity has rebounded from a brief quarter-end dip.
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。本季我們的專業商業垂直業務和私人銀行業務的成長趨勢強勁,部分緩解了季度末分行存款的流失。由於客戶活動從季度末的短暫下滑中反彈,7 月的平均存款餘額高於第二季度的水平。
While we do not typically reference deposit team additions as they occur, we recently received approval to open a new branch office in Beverly Hills, California. This location will be overseen by experienced in-market leadership and will supplement the delivery of our financial products and services to our existing customer base. We are also planning a new branch opening in Staten Island, which is contiguous to our existing Metro New York footprint. We have over 2,000 customers in this market already and are extremely excited about the market leadership that we have attracted to accelerate our business development efforts.
雖然我們通常不會在存款團隊增加時提及,但我們最近獲得了在加州比佛利山莊開設新分店的批准。該地點將由經驗豐富的市場領導層負責監督,並將補充我們向現有客戶群提供的金融產品和服務。我們還計劃在史坦頓島開設一家新分行,該分行毗鄰我們現有的紐約都會區足跡。我們在這個市場上已經擁有 2,000 多家客戶,對於我們吸引來加速我們業務發展的市場領導地位感到非常興奮。
Both initiatives will enhance our name recognition in our markets and are expected to contribute to future deposit growth. In addition to growing deposits through our specialty commercial vertical, which I previously mentioned, we believe selective branch expansion supported by experienced end market leaders is an attractive option to grow core deposits at a reasonable all-in cost and we anticipate a few additional opportunities to come to fruition.
這兩項措施都將提高我們在市場上的知名度,並預計將有助於未來的存款成長。除了我之前提到的透過我們的專業商業垂直領域增加存款外,我們認為,由經驗豐富的終端市場領導者支持的選擇性分支機構擴張是以合理的總成本增加核心存款的一個有吸引力的選擇,我們預計還有一些額外的機會實現。
Slide 11 illustrates the drivers of loan growth during the quarter. Total loans increased almost $400 million, driven by roughly 16% annualized C&I growth. Our focus on C&I has been a strategic imperative as we work to further diversify our balance sheet. This quarter's growth came across multiple business lines and geographies. And while future growth may be lumpy, there are significant opportunities for longer-term growth in this asset class.
投影片 11 說明了本季貸款成長的驅動因素。在 C&I 約 16% 的年化成長率的推動下,貸款總額增加了近 4 億美元。隨著我們努力進一步實現資產負債表多元化,我們對 C&I 的關註一直是我們的策略要務。本季度的成長涉及多個業務線和地區。儘管未來成長可能不穩定,但該資產類別存在長期成長的重大機會。
On the commercial real estate side, we saw a meaningful shift from investor real estate to owner-occupied real estate during the quarter. While the majority of this transition was a result of the reclassification of approximately $1 billion of health care loans, we continued to benefit from the strategic deemphasis of investor real estate originations. This focus will continue to result in lower real estate concentration going forward.
在商業房地產方面,本季我們看到從投資者房地產到業主自用房地產的有意義的轉變。雖然這一轉變的大部分是約 10 億美元醫療保健貸款重新分類的結果,但我們繼續受益於投資者房地產起源的策略性淡化。這種關注將繼續導致未來房地產集中度降低。
Slide 12 provides additional detail on the composition of our commercial real estate portfolio by property type and geography. In general, the commercial real estate markets and borrower performance across our footprint remain healthy.
投影片 12 按房產類型和地理位置提供了更多有關我們商業房地產投資組合構成的詳細資訊。總體而言,我們業務範圍內的商業房地產市場和借款人表現仍然健康。
With that, I will turn the call over to Mike Hagedorn to provide additional insight into the quarter's financials.
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。
Michael Hagedorn - Chief Financial Officer, Senior Executive Vice President
Michael Hagedorn - Chief Financial Officer, Senior Executive Vice President
Thank you, Tom. Staying on the CRE topic for a moment. Slide 15 illustrates the contractual maturities of our commercial real estate portfolio. We have included the LTV, DSCR, and rate by maturity bucket for your benefit. This maturity schedule illustrates the minimal near-term repricing risk that exists in our portfolio.
謝謝你,湯姆。暫時停留在 CRE 主題。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,我們已包含 LTV、DSCR 和按期限劃分的費率。此到期時間表說明了我們投資組合中存在的最小近期重新定價風險。
Slide 16 highlights the significant positive inflection in both net interest income and net interest margin this quarter. This strong performance was the result of both interest income growth and interest expense reductions relative to the first quarter of the year. We forecast continued net interest income growth as a result of modest balance sheet growth and the ongoing tailwind associated with asset yield expansion.
投影片 16 強調了本季淨利息收入和淨利差的顯著正向變化。這一強勁表現是利息收入成長和利息支出相對於今年第一季減少的結果。我們預計,由於資產負債表溫和成長以及資產收益率擴張帶來的持續利好,淨利息收入將持續成長。
On the funding side, we have benefited from targeted deposit cost reductions that were implemented over the last few quarters. Average noninterest deposits increased modestly during the quarter. And despite a brief dip at the quarter end, we are seeing additional growth in average noninterest balances already in the third quarter.
在資金方面,我們受益於過去幾季實施的有針對性的存款成本降低。本季平均非利息存款小幅增長。儘管季度末出現短暫下降,但我們看到第三季平均非利息餘額已經進一步成長。
Turning to the next slide, you can see that noninterest income on an adjusted basis declined compared to the first quarter of 2024. Roughly 75% of the net decline in fee income was related to the anticipated normalization of tax credit advisory revenues from the first quarter's elevated level.
翻到下一張投影片,您可以看到調整後的非利息收入與2024 年第一季相比有所下降。化有關。
Beyond this, we were impacted by a negative valuation adjustment on certain fintech investments, which was partially offset by stronger swap fees, insurance commissions, and bank-owned life insurance income. We continue to drive growth in our capital markets, wealth management, and treasury services channels. These factors are likely to drive the anticipated growth in fee income for the rest of the year.
除此之外,我們也受到某些金融科技投資的負面估值調整的影響,但掉期費用、保險佣金和銀行擁有的人壽保險收入的增加部分抵消了這一影響。我們持續推動資本市場、財富管理和資金服務管道的成長。這些因素可能會推動今年剩餘時間費用收入的預期成長。
On the following slide, you can see that our noninterest expenses were approximately $278 million for the quarter. Adjusting for our $1.4 million FDIC special assessment and certain other noncore charges, noninterest expenses were approximately $270 million on an adjusted basis. This represents a very modest increase from both the first quarter of 2024 and the second quarter of 2023. This was primarily the result of costs related to the credit risk transfer that we executed and higher traditional FDIC assessment expense.
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 2.78 億美元。調整 140 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 2.7 億美元。這與 2024 年第一季和 2023 年第二季相比,增幅非常小。
We continue to focus on headcount optimization and technology efficiencies to combat the revenue pressure that has occurred. As a reminder, our noninterest expense for the rest of the year will include roughly $6 million of premium costs related to our risk transfer transaction.
我們繼續關注人員優化和技術效率,以應對已經出現的收入壓力。提醒一下,我們今年剩餘時間的非利息支出將包括與風險轉移交易相關的約 600 萬美元的溢價成本。
On slide 19, you can see the continued and notable stability in our nonaccrual and past due loan categories. Despite the impact of higher rates and isolated stress in the office segment, our borrowers continue to generally perform well. At the bottom left, you can see the lower historical loss content of our portfolio, which plays out consistently across cycles. We remain confident in our reserve coverage relative to our loss content as illustrated in the charts on the bottom right.
在投影片 19 上,您可以看到我們的非應計貸款和逾期貸款類別持續且顯著的穩定性。儘管受到利率上升和辦公室領域孤立壓力的影響,我們的借款人整體表現仍然良好。在左下角,您可以看到我們投資組合的歷史損失含量較低,並且在各個週期中表現一致。相對於我們的損失內容,我們對我們的準備金覆蓋率仍然充滿信心,如右下圖表所示。
The next slide illustrates the trend in allowance coverage charge-offs and provision. Our allowance coverage ratio continues to expand towards the intermediate-term target, and you heard Ira describe the drivers of this expansion during the second quarter. To reiterate, we expect that the allowance to loan loss ratio will reach a level of around 1.10% based on current market dynamics and our knowledge of the portfolio. This expectation implies that our provision has peaked and will likely trend lower over the next few quarters.
下一張投影片說明了津貼覆蓋沖銷和撥備的趨勢。我們的津貼覆蓋率繼續向中期目標擴大,您聽到 Ira 描述了第二季度這一擴張的驅動因素。重申一下,根據目前的市場動態和我們對投資組合的了解,我們預計撥備貸款損失率將達到 1.10% 左右的水平。這一預期意味著我們的準備金已達到頂峰,並可能在未來幾季呈下降趨勢。
The overwhelming majority of our loan portfolio continues to perform extremely well. Roughly 85% of the quarter's net charge-offs were the result of a single commercial real estate and single C&I credit. The C&I credit was largely covered by preexisting specific reserve. As Ira indicated, given the current market environment, we do anticipate that net charge-offs will remain close to current levels for the remainder of the year.
我們絕大多數的貸款組合繼續表現非常出色。本季約 85% 的淨沖銷是單一商業房地產和單一 C&I 信貸的結果。工商業信用主要由預先存在的專案準備金涵蓋。正如 Ira 指出的那樣,鑑於當前的市場環境,我們預計今年剩餘時間內淨沖銷將保持在接近當前水平。
The next slide illustrates the sequential increase in our tangible book value and capital ratios. The quarter's elevated provision and modest expansion headwind from the OCI impact associated with our available for sale securities portfolio weighed on tangible book value growth for the quarter. That said, we are extremely pleased with the significant growth and our risk-based capital ratios relative to both the prior quarter and the year ago period. We are very proud of our ability to strengthen our balance sheet and enhance financial flexibility in shareholder-friendly ways.
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。本季準備金的增加以及與我們可供出售證券投資組合相關的 OCI 影響所帶來的適度擴張阻力,拖累了本季有形帳面價值的成長。也就是說,我們對上一季和去年同期的顯著成長和基於風險的資本比率感到非常滿意。我們對能夠以有利於股東的方式加強資產負債表和增強財務靈活性感到非常自豪。
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。
Operator
Operator
(Operator Instructions) Frank Schiraldi, Piper Sandler.
(操作說明)Frank Schiraldi、Piper Sandler。
Frank Schiraldi - Analyst
Frank Schiraldi - Analyst
Good morning. Ira, you mentioned the 1.10% reserve to loan ratio and essentially, I guess, you're just getting there early here. But in terms of a continued mix shift towards C&I, I would think that would still tend to put additional pressure on that ratio. So it sounds like you're pretty comfortable with the 1.10%, but just kind of curious if you can walk through the thinking there is the idea that criticized and classified begin to moderate here as an offset? Just curious your thoughts.
早安. Ira,您提到了 1.10% 的準備金與貸款比率,我想,本質上您只是提前到達了這一點。但就持續向工商業的混合轉變而言,我認為這仍然會給該比率帶來額外的壓力。所以聽起來你對 1.10% 很滿意,但只是有點好奇你是否可以思考一下批評和分類的想法是否開始在這裡緩和作為補償?只是好奇你的想法。
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Hey, Frank. This is Mark Seager. I think on the criticized classified front, if you see our migration this quarter that was lower than prior quarter and very much associated with what I mentioned, deemphasizing a personal guarantee in our decisioning on internal risk rating. I want to make it clear though, we think that loans with a guarantee will ultimately have materially better outcomes for the organization, and they continue to be very important in our really relationship-based model within the organization.
嘿,弗蘭克。這是馬克·西格。我認為在受到批評的機密方面,如果你看到我們本季度的遷移低於上一季度,並且與我提到的密切相關,在我們內部風險評級的決策中不強調個人保證。但我想澄清的是,我們認為有擔保的貸款最終將為組織帶來實質更好的結果,並且它們在我們組織內真正基於關係的模型中仍然非常重要。
But to your point about C&I, you're correct in the sense that C&I does traditionally carry a higher level of provisioning than CRE, and that's going to be a portion of the build. However, in the environment that we're in right now with continued higher entry rates, there is likely to be a continued modest migration in our CRE portfolio into criticized categories.
但就您關於 C&I 的觀點而言,您是正確的,因為 C&I 傳統上確實比 CRE 提供更高層級的配置,而這將成為建置的一部分。然而,在我們目前所處的環境下,進入率持續走高,我們的商業房地產投資組合可能會繼續適度遷移到受批評的類別。
Frank Schiraldi - Analyst
Frank Schiraldi - Analyst
Okay. But just want to -- so you're still comfortable even in that -- with that mix shift towards C&I in the reserve loan ratio at about 1.10%, you don't see a need for that to move higher in the near term?
好的。但只是想——所以即使這樣你仍然感到舒服——隨著準備金貸款比率向 C&I 的混合轉變,準備金貸款比率約為 1.10%,你認為短期內不需要提高這一比率?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
No. The 1.10% is a continuation of our build, and we're comfortable with that level.
不會。
Frank Schiraldi - Analyst
Frank Schiraldi - Analyst
Okay. And then just as a follow-up, you obviously worked down pre in part through this reclassification. And I imagine that's something you guys have been more active on pursuing. Just curious if there's continued efforts here that could potentially drive more to come.
好的。然後,作為後續行動,您顯然透過這次重新分類而部分降低了工作量。我想這是你們一直在更積極追求的事情。只是好奇這裡是否繼續努力可能會推動更多的發展。
And any updated thoughts about now that you're at kind of your year-end level, I guess, for concentrations on CRE, your target. Any updated thoughts on where you could be by the end of -- or what you're targeting by the end of 2025 in terms of concentration? Thanks.
我想,現在你已經達到了年終水平,有任何更新的想法,專注於 CRE,你的目標。關於到 2025 年底您的目標是什麼,或是到 2025 年底您的目標是什麼,您有什麼最新的想法嗎?謝謝。
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Yeah. I think we were pretty specific last quarter, sort of where we thought from an intermediate basis and getting below 400% was pretty important to us. Obviously, accelerating it, if possible, is something that we're looking at doing. But keeping in mind, we want to make sure we keep in mind the earnings profile of the organization.
是的。我認為上個季度我們非常具體,我們從中間的基礎上認為,低於 400% 對我們來說非常重要。顯然,如果可能的話,加速它是我們正在考慮做的事情。但請記住,我們希望確保牢記該組織的盈利狀況。
And as we look to different alternatives, making sure that they're in a shareholder-friendly manner, and we're not denigrating a future earnings profile. So it really is a balance for us as we continue to move forward. We're really excited about the ability to accelerate some of those initiatives. But we have to keep in mind some of the economics associated with different alternatives as well.
當我們尋找不同的替代方案時,請確保它們以對股東有利的方式進行,並且我們不會詆毀未來的獲利狀況。因此,當我們繼續前進時,這對我們來說確實是一種平衡。我們對能夠加速其中一些舉措感到非常興奮。但我們也必須牢記與不同替代方案相關的一些經濟學原理。
Frank Schiraldi - Analyst
Frank Schiraldi - Analyst
Okay. And then just on the reclassification. Is that -- was that like a specific sort of project to move that along? Is that largely completed? Or could we see another bucket of that next quarter?
好的。然後就是重新分類。這是否是一個特定類型的專案來推動這一進程?已經基本完成了嗎?或者我們可以在下個季度看到另一桶嗎?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
That was a specific project that we put together specifically related to skilled nursing segment of the portfolio, and that was essentially completed in the second quarter.
這是我們專門與投資組合的熟練護理部分相關的一個具體項目,基本上在第二季完成。
Frank Schiraldi - Analyst
Frank Schiraldi - Analyst
Great. Okay. Thank you.
偉大的。好的。謝謝。
Operator
Operator
Steven Alexopoulos, JPMorgan.
史蒂文‧阿萊克索普洛斯,摩根大通。
Steven Alexopoulos - Analyst
Steven Alexopoulos - Analyst
Hi, everybody. I want to start, Ira, the net interest income outlook, the 1.5% to 3%. I assume that's unannualized growth, but I want to confirm that. And then I want to ask if we get to rate cuts where you think you end up in the range.
大家好。我想首先,Ira,淨利息收入前景為1.5%至3%。我認為這是非年化成長,但我想確認這一點。然後我想問我們是否會在您認為最終的範圍內降息。
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Yes. Steven, this is Travis. So you're correct, that is unannualized growth that we're showing on a quarterly basis going forward. Our forward guidance assumes two rate cuts consistent with what the implied curve was at 6.30%. So that's factored in there. And then I think within that range, you could also -- static rates are captured in that range as well as there's just not much impact or change to our NII guidance dependent on the amount of rate cuts here in the near term.
是的。史蒂文,這是崔維斯。所以你是對的,這是我們未來按季度顯示的非年化成長。我們的前瞻性指引假設兩次降息與隱含曲線 6.30% 一致。所以這是考慮在內的。然後我認為在這個範圍內,你也可以——在這個範圍內捕捉靜態利率,並且根據近期降息幅度,我們的 NII 指導不會產生太大影響或變化。
Steven Alexopoulos - Analyst
Steven Alexopoulos - Analyst
Got it. Okay. That's helpful. And then on slide 15, the commercial real estate, that's always very helpful. The $1.1 billion of commercial real estate that matured was retained. Did you guys -- can you walk us through did you need to make concessions there? Did these move into an extension period? Or were these full refinance or the borrower put in more equity and these are new commercial real estate loans?
知道了。好的。這很有幫助。然後在幻燈片 15 上,商業房地產,這總是非常有幫助。到期的11億美元商業地產保留。你們能告訴我們你們是否需要在那裡讓步嗎?這些是否進入了延長期?或者這些是全額再融資還是藉款人投入了更多股本,這些是新的商業房地產貸款?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
So on the retained side, all of those loans were repriced at current market rates and sized appropriately to our standards. You'll note we have the modified other of $2 million that really represents a modified structure historic TDR-type relationship. The $1.1 billion was all at market terms.
因此,在保留方面,所有這些貸款都按照當前市場利率重新定價,並根據我們的標準調整規模。您會注意到,我們已經修改了 200 萬美元的其他金額,這實際上代表了歷史性 TDR 類型關係的修改結構。這11億美元都是用市場價格計算的。
Steven Alexopoulos - Analyst
Steven Alexopoulos - Analyst
Okay, Mark. Because I guess we're hearing some borrowers are just looking for a one-year extension, if you will, not necessarily refinancing, the loan. Were any of these that nature?
好吧,馬克。因為我想我們聽說一些借款人只是尋求將貸款延期一年,如果你願意的話,不一定是再融資。這些都是本性嗎?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Yes, Steven. Absolutely. The duration of some of these transactions were shorter than five-year renewals. However, all of them were done, again, at current market rates and with normalized amortization.
是的,史蒂文。絕對地。其中一些交易的持續時間短於五年續約。然而,所有這些都是按照當前市場利率和標準化攤銷完成的。
Steven Alexopoulos - Analyst
Steven Alexopoulos - Analyst
Got it. So they would need to put full equity to get that extension basically?
知道了。那麼他們基本上需要投入全部股權才能獲得延期嗎?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Sometimes yes, sometimes no. Yeah, depending on where the loan stands at maturity.
有時是,有時不是。是的,取決於貸款到期時的情況。
Steven Alexopoulos - Analyst
Steven Alexopoulos - Analyst
Okay. So that -- yes.
好的。所以——是的。
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Sorry. So the equity level would needed to be normal, but obviously, based on the original loan to value, many of the borrowers didn't even need to put in equity.
對不起。因此,股本水準需要保持正常,但顯然,根據原始貸款價值,許多藉款人甚至不需要投入股本。
Steven Alexopoulos - Analyst
Steven Alexopoulos - Analyst
Got it. Okay. And then final for me on the RWA benefit and the strategy on the auto loans this quarter. Are you guys looking at other use of synthetic instruments. Should we expect more of this in the second half? Or is it done?
知道了。好的。最後我要談的是本季的 RWA 福利和汽車貸款策略。你們有在尋找合成樂器的其他用途嗎?我們是否應該在下半年期待更多這樣的事?或已經完成了嗎?
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Yes, Steven. This is Travis. Look, I mean we always kind of analyze what's out there and available. I mean I think you see more of these risk transfers being done in the industry. It's not unique to Valley necessarily. I think the auto portfolio was the low-hanging fruit, to be honest, but we continue to analyze other opportunities in other asset classes as well. So I think, again, not just for Valley, but for the rest of the industry, you'll see these being used to generate capital efficiency on a go-forward basis.
是的,史蒂文。這是特拉維斯。聽著,我的意思是我們總是分析現有的和可用的東西。我的意思是,我認為您會看到更多此類風險轉移在行業中進行。這不一定是矽谷獨有的。老實說,我認為汽車投資組合是唾手可得的成果,但我們也繼續分析其他資產類別的其他機會。因此,我再次認為,不僅對於矽谷,而且對於產業的其他公司,你都會看到這些技術被用來在未來的基礎上提高資本效率。
Steven Alexopoulos - Analyst
Steven Alexopoulos - Analyst
Got it. Okay. Thanks for taking my question.
知道了。好的。感謝您提出我的問題。
Operator
Operator
Matthew Breese, Stephens.
馬修·布里斯,史蒂芬斯。
Matthew Breese - Analyst
Matthew Breese - Analyst
Hey. Good morning. Thank you. Good morning, everybody. Ira, I think you hinted at this, but I was hoping to get your thoughts on either selling commercial real estate loans or securitizing loans to accelerate and lower that CRE concentration how likely is that type of outcome? And if you do end up going that route, what would you be willing to tell us in terms of earnings or tangible book value impacts that you'd be able to absorb to achieve those goals faster?
嘿。早安.謝謝。大家早安。 Ira,我認為你暗示了這一點,但我希望了解你對出售商業房地產貸款或證券化貸款以加速和降低商業房地產集中度的想法,這種結果的可能性有多大?如果您最終選擇了這條路線,您願意告訴我們什麼是您能夠吸收的收益或有形帳面價值影響,以更快地實現這些目標?
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
I think you highlighted the appropriate guardrails, Matt, right? I think we've done a good job for a long period of time, prioritizing growth in tangible book value. And denigrating that tangible book value is something that's important to us and really what that threshold is. And once again, maintaining an earnings profile that's really set to continue to grow based on where we're seeing the balance sheet as well as the net interest margin becomes important to us.
我認為你強調了適當的護欄,馬特,對吧?我認為我們在很長一段時間內做得很好,優先考慮有形帳面價值的成長。詆毀有形的帳面價值對我們來說很重要,而且這個門檻是什麼。再一次,根據我們所看到的資產負債表和淨利差,維持真正持續成長的獲利狀況對我們來說變得很重要。
So it is a toggle as to how we think about the acceleration. That said, we do think there continue to be a lot of opportunities as to how we can reposition the balance sheet a little bit quicker when not denigrating what that earnings profile is. So there are opportunities and we continue to weigh them, and we will execute on them when we think it makes good sense not just from a balance sheet mix perspective, but also from an earnings profile perspective.
所以這是我們如何看待加速度的一個切換。也就是說,我們確實認為,在不詆毀獲利狀況的情況下,我們仍然有很多機會可以更快地重新調整資產負債表。因此,機會是存在的,我們會繼續權衡它們,當我們認為這不僅從資產負債表組合的角度而且從盈利狀況的角度來看都有意義時,我們就會執行它們。
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Okay. And I know you all over the past handful of quarters have taken a much more hands-on approach to deposit costs. They were only up 2 basis points quarter-on-quarter. Can we see deposit costs fall next quarter and have interest-bearing liabilities peak for the cycle?
好的。我知道,在過去的幾個季度裡,你們都採取了更實際的方法來控制存款成本。季度環比僅上漲 2 個基點。我們能否看到下個季度存款成本下降,並且有息負債在本週期達到高峰?
Michael Hagedorn - Chief Financial Officer, Senior Executive Vice President
Michael Hagedorn - Chief Financial Officer, Senior Executive Vice President
Yes, it's a good question. And I think our results for the quarter kind of speak to themselves and were strong. When you look at total deposits increased $1 billion. And you look at the cost makeup of those deposits, total deposit costs, as we mentioned earlier, we're only up 2 basis points.
是的,這是一個好問題。我認為我們本季的業績不言而喻,而且很強勁。總存款增加了 10 億美元。你看看這些存款的成本組成,總存款成本,正如我們之前提到的,我們只上漲了 2 個基點。
But in that category of total deposits, brokered costs were flat at $5.05 for both quarters and customer costs actually declined 1 basis point. And when you look at inside of that customer portion of it, we raised $1.3 billion of customer deposits at a cost of $324 million. So I think it kind of speaks for itself that the cost reductions that we did along with our ability to generate our various sources that we've built over the years was very strong and you see that in the numbers this quarter.
但在總存款類別中,兩季的經紀成本均持平於 5.05 美元,而客戶成本實際上下降了 1 個基點。當你仔細觀察其中的客戶部分時,你會發現我們以 3.24 億美元的成本籌集了 13 億美元的客戶存款。因此,我認為這本身就說明了我們所做的成本降低以及我們多年來建立的各種來源的生成能力非常強大,您可以在本季度的數字中看到這一點。
Matthew Breese - Analyst
Matthew Breese - Analyst
Okay. And then you're not the only bank that is deemphasizing commercial real estate and working towards more C&I loan growth. Are you seeing any deterioration in underwriting of commercial loans you're seeing some loan covenants being given away or tighter spreads. I'd love some commentary on that.
好的。而且,您並不是唯一一家不再重視商業房地產並致力於更多商業和工業貸款成長的銀行。您是否看到商業貸款承保情況惡化,您是否看到一些貸款契約被放棄或利差收緊。我希望對此發表一些評論。
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Hey, Matt, it's Tom. Our underwriting and our C&I portfolio on the originations but it's similar terms and credit metrics that we've underwritten to in the past. We've always said we're not going to sacrifice credit quality for quick growth.
嘿,馬特,我是湯姆。我們的承保和 C&I 投資組合起源於我們過去承保的類似條款和信用指標。我們一直說,我們不會為了快速成長而犧牲信貸品質。
And we've been growing C&I for the last six years at around 10% annualized. And this quarter, it's a 16% annualized. And it's coming primarily from our specialty niches where we have experience and a reputation in the market as well as in our Florida region, which is still experiencing solid growth.
過去六年來,我們的 C&I 一直以年化 10% 左右的速度成長。本季度,年化成長率為 16%。它主要來自我們的專業領域,我們在市場以及佛羅裡達地區擁有經驗和聲譽,該地區仍在經歷穩健的成長。
Matthew Breese - Analyst
Matthew Breese - Analyst
Got it. Okay. Last one for me. You have -- I think $115 million of sub debt reaching a pre-set date next year. Any plans there paid off? Or should we expect some sort of pre-emptive raise to get ahead of it?
知道了。好的。最後一張給我。我認為 1.15 億美元的次級債務將於明年達到預定日期。有什麼計劃得到回報了嗎?或者我們應該期待某種先發制人的加薪來搶先一步?
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Matt, we always monitor that capital markets. I mean, I think we've kind of issued sub debt every 18 months, obviously, with some of the dynamics in the industry last year, right, that the sub-debt market and debt capital markets in general have has been a little bit slower, seeing some strengthening today. But I think on a regular basis, sub debt will be kind of a part of the capital stack, and we're always monitoring shareholder-friendly ways to enhance the balance sheet. So I'll leave it there.
馬特,我們一直監控資本市場。我的意思是,我認為我們每 18 個月就會發行一次次級債務,顯然,去年該行業的一些動態,對,次級債務市場和債務資本市場總體上有點速度較慢,今天有所加強。但我認為,定期而言,次級債務將成為資本堆疊的一部分,我們一直在監控有利於股東的方式來改善資產負債表。所以我會把它留在那裡。
Matthew Breese - Analyst
Matthew Breese - Analyst
Thanks for taking my questions.
感謝您回答我的問題。
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Thanks, Matt.
謝謝,馬特。
Operator
Operator
Manan Gosalia, Morgan.
馬南·戈薩利亞,摩根。
Manan Gosalia - Analyst
Manan Gosalia - Analyst
Hi. Good morning. I wanted to follow up on the reserve question. Could you talk about what drove the decision to accelerate the reserve build this quarter? And specifically, what does that mean for 2025? Are there any specific reserves embedded in that, that could drive a reserve bleed next year if charge-offs came through? Or do you expect to stay in that 1.1% range for the foreseeable future?
你好。早安.我想跟進保留問題。您能否談談是什麼推動了本季加快儲備建設的決定?具體來說,這對 2025 年意味著什麼?其中是否包含任何特定的準備金,如果核銷成功,可能會導致明年的準備金流失?或者您預計在可預見的未來會保持在 1.1% 的範圍內嗎?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
So we -- there are some specific reserves in there, but we foresee staying within the 1.1% ratio on a go forward. And we're very comfortable at that level, mate.
因此,我們有一些特定的儲備,但我們預計未來的比率將保持在 1.1% 之內。我們在這個水平上感到非常舒服,夥計。
Manan Gosalia - Analyst
Manan Gosalia - Analyst
Great. And then in terms of the charge-offs this quarter, if you could speak to the couple of credits. Are there any -- is there any read across to the rest of the portfolio? As I look at the forward NCO guide, I think it's -- the midpoint of that range is pretty much in line with the second quarter. It's a little bit higher than the prior quarter. So I just wanted to check does that come from plan actions to reduce concentration? Is there anything you're seeing in the portfolio? Or is it just conservatism? Thanks.
偉大的。然後就本季的沖銷而言,如果您能談談這幾個積分的話。有沒有——有沒有對投資組合的其餘部分進行解讀?當我查看未來 NCO 指南時,我認為該範圍的中點與第二季基本一致。比上一季略高一些。所以我只是想檢查一下這是否來自減少集中度的計劃行動?您在投資組合中看到了什麼嗎?或者這只是保守主義?謝謝。
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
So as in the remarks by Ira, again, two credits really drove the level of charge-offs that we see this quarter. One of them on the CRE side was an office building. I point to the granularity that we have in our office portfolio with a 3.3% average loan. This loan was a larger CRE loan, just north of $30 million.
正如 Ira 的言論一樣,兩個貸項確實推動了我們本季看到的沖銷水準。其中華創一側是一棟辦公大樓。我指出我們的辦公大樓投資組合的平均貸款利率為 3.3%。這筆貸款是一筆金額較大的 CRE 貸款,略高於 3,000 萬美元。
I would note that in addition to the granularity, we have a very small number of larger loans. We only have six office loans that are over $50 million. One of them is our headquarters. And of those six, we just have one is classified. So we continue to monitor the office portfolio on a regular basis, updating metrics on all of our office loans north of $10 million and the migration in the portfolio. throughout this year has been disproportionate to office, although in the second quarter that has moderated in the office portfolio.
我要指出的是,除了粒度之外,我們還有極少量的大筆貸款。我們只有六筆辦公室貸款超過 5000 萬美元。其中之一就是我們的總部。在這六項中,我們只有一項是機密。因此,我們繼續定期監控辦公室投資組合,更新所有超過 1000 萬美元的辦公室貸款以及投資組合遷移的指標。儘管在第二季度,辦公大樓投資組合有所放緩,但今年全年辦公大樓投資比例不成比例。
Manan Gosalia - Analyst
Manan Gosalia - Analyst
Got it. And in terms of the forward -- does that -- does a slightly higher level on NCOs come from reduced concentration or reducing consideration of the CRE book? Or is it just some conservatism embedded in there?
知道了。就未來而言,NCO 的水平略高是否來自於集中度的降低或對 CRE 書籍的考慮的減少?還是只是其中蘊藏著某種保守主義?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
It is more refocused on what we're looking at potential charge-offs. Customers that are on our radar that have potential for rollover risk in the future, which could deteriorate debt service coverage on a go-forward basis. So we continue to keep those on our radar and note that they may or may not lead to future charge-offs down.
它更多地重新關注我們正在考慮的潛在沖銷。我們關注的客戶未來有可能出現展期風險,這可能會導致未來的償債覆蓋範圍惡化。因此,我們繼續關注這些問題,並注意它們可能會也可能不會導致未來的沖銷下降。
Manan Gosalia - Analyst
Manan Gosalia - Analyst
Got it. Thank you.
知道了。謝謝。
Operator
Operator
Steve McGrady, KBW.
史蒂夫·麥迪,KBW。
Steve McGrady - Analyst
Steve McGrady - Analyst
Great. Thanks. A lot of discussion from some of your competitors this quarter and last quarter, just about portfolio reviews in terms of provisioning and reserve build outlook. I'm interested in kind of what you've done, not only this quarter, but in the last couple of quarters to give a deeper look into some of the CRE book to get to that peak provision comment. Thanks.
偉大的。謝謝。本季度和上季度,您的一些競爭對手進行了很多討論,涉及配置和儲備建設前景方面的投資組合審查。我對您所做的事情很感興趣,不僅在本季度,而且在過去的幾個季度中,我對 CRE 書中的一些內容進行了更深入的研究,以獲得峰值供應評論。謝謝。
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
So if you recall from our first quarter call, we looked at the vast majority of the portfolio through the end of the first quarter with updated information on all those customers. The migration this quarter again, as mentioned, was related to our view of the benefit of a personal guarantee within risk rating and really deemphasizing that on a go-forward basis. So our review was proactive and mostly completed in the first quarter, and we've essentially gone through the vast majority of our exposure to date.
因此,如果您還記得我們第一季的電話會議,我們會在第一季末查看絕大多數投資組合,並提供所有這些客戶的最新資訊。如同前面所提到的,本季的遷移再次與我們對風險評級中個人擔保的好處的看法有關,並且在未來的基礎上確實不再強調這一點。因此,我們的審查是積極主動的,大部分在第一季完成,並且我們基本上已經完成了迄今為止的絕大多數風險。
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
I think one of the things that I would add to it is this isn't just internally value looking at it. We've engaged with third parties to come in and assess the portfolio as well, just to make sure that our view is aligned with the outside view as well.
我認為我要添加的一件事是,這不僅僅是內部價值。我們也與第三方合作來評估投資組合,只是為了確保我們的觀點也與外部觀點保持一致。
Steve McGrady - Analyst
Steve McGrady - Analyst
Great. Thank you. And then just a follow-up. Could you provide the criticized classified linked quarter and also this quarter, I don't have my thoughts in the deck. Thanks.
偉大的。謝謝。然後只是後續行動。您能否提供受到批評的分類連結季度以及本季度,我沒有我的想法。謝謝。
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Yeah. It will come out in the Q. We had a migration of around $350 million this quarter, which is down from $600 million in the prior quarter -- and more details on that will be in the Q.
是的。它將在季度中公佈。
Steve McGrady - Analyst
Steve McGrady - Analyst
All right. Thanks.
好的。謝謝。
Operator
Operator
Steve Moss, Raymond James.
史蒂夫·莫斯,雷蒙德·詹姆斯。
Steve Moss - Analyst
Steve Moss - Analyst
Hi. Good morning. Starting on the liquidity build here. You guys added broker deposits and investment securities. Kind of curious how much higher do you expect to take the investment securities portfolio and maybe continue to add broker deposits?
你好。早安.從這裡開始建立流動性。你們新增了經紀人存款和投資證券。有點好奇您期望將投資證券投資組合提高多少,並可能繼續增加經紀人存款?
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
I think in general, there will be a growth tailwind on the securities portfolio, but this quarter was certainly more outsized than what you've seen Look, I think part of the reason for that is we have this additional cost associated with the risk transfer trade. So a small, modest leverage strategy to help offset the cost there was on our mind. It's done in a capital-efficient way.
我認為總的來說,證券投資組合將會出現成長順風,但這個季度的規模肯定比你所看到的要大,我認為部分原因是我們有與風險轉移相關的額外成本貿易。因此,我們想到了一種小規模、適度的槓桿策略來幫助抵銷成本。它是以資本效率高的方式完成的。
We're buying Guinea May securities with zero-risk weight. So that's kind of important to what we're doing here. So I think over time, it migrates higher, but I don't think there will be any rash actions candidly on the securities portfolio.
我們正在購買零風險權重的幾內亞五月證券。所以這對我們在這裡所做的事情很重要。因此,我認為隨著時間的推移,它會走高,但我認為不會對證券投資組合採取任何魯莽的行動。
Steve Moss - Analyst
Steve Moss - Analyst
Okay. I appreciate that. And then on -- going back to the total capital here, you guys are 12.2% as of quarter end. Just curious, do you have any short or intermediate-term targets as to where you want that to go?
好的。我很欣賞這一點。然後,回到這裡的總資本,截至季度末你們的資本率為 12.2%。只是好奇,您有任何短期或中期目標嗎?
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
I think from a macro basis, we're definitely pretty pleased with where the regulatory capital ratios are. We did give some guidance as to where we think the CET1 number needs to get to -- and we're still focused on making sure from a longer-term perspective that we get to over 10% on that number.
我認為從宏觀角度來看,我們對監管資本比率的水平絕對感到非常滿意。我們確實就我們認為 CET1 數字需要達到的目標給出了一些指導,而且我們仍然專注於從長遠角度確保我們達到該數字的 10% 以上。
Steve Moss - Analyst
Steve Moss - Analyst
Okay. I appreciate that. And then in terms of the commercial real estate that repriced this quarter, just -- maybe just going back to that kind of curious what is the -- what is your view of full market rate or fair market rate for commercial real estate repricing these days?
好的。我很欣賞這一點。然後就本季重新定價的商業房地產而言,也許只是回到那種好奇什麼是您現在對商業房地產重新定價的完全市場利率或公平市場利率的看法?
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Yeah. It's Tom, Steve. It really depends on the asset class and segment, the metrics on loan-to-value, debt service coverage and such. We have spreads in those classes as high as 400 basis points, probably as low -- no lower than 250 basis points. So it really depends on the asset class duration of metrics.
是的。是湯姆,史蒂夫。這實際上取決於資產類別和細分市場、貸款價值比指標、償債覆蓋率等。這些類別的利差高達 400 個基點,也可能低至不低於 250 個基點。所以這實際上取決於資產類別指標的持續時間。
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
And I think on a macro basis, the average spread that we put was about 350 basis points. So we think that's probably indicative. And I think as we alluded to earlier, these were done in market terms when it comes to what the loans to value coverage should look like, the debt service coverage ratio as well as what those spreads should look like.
我認為從宏觀角度來看,我們設定的平均利差約為 350 個基點。所以我們認為這可能具有指示性。我認為,正如我們之前提到的,這些都是按照市場術語進行的,涉及貸款價值覆蓋率、償債覆蓋率以及利差應該是什麼樣子。
Steve Moss - Analyst
Steve Moss - Analyst
Okay. I appreciate that. And maybe just kind of circling back to the deemphasis here of the personal guarantee, was that done -- kind of just curious as to the rationalization there. Was it regulatory driven? Or is it just that you're seeing customer borrower cash flows deteriorate here? And what's the dynamic there to make that change here?
好的。我很欣賞這一點。也許只是回到這裡不再強調個人保證,這件事已經完成了——只是對那裡的合理化感到好奇。是監管驅動的嗎?還是只是您看到客戶借款人的現金流惡化?做出這種改變的動力是什麼?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
This is Mark. We really took that option to have a conservative look at portfolio while historically the performance that we have and what we're seeing to date for loans with the guarantee versus those without is clearly stronger. We focused our risk ratings on an unadjusted primary source of repayment. And so really hyper focused on debt service coverage as being a primary driver of our ratings.
這是馬克。我們確實採取了這一選擇,對投資組合進行保守的審視,而從歷史上看,我們所擁有的表現以及我們迄今為止所看到的有擔保貸款與無擔保貸款的表現顯然更強。我們將風險評級重點放在未經調整的主要還款來源。因此,我們非常關注償債覆蓋率,將其作為我們評級的主要驅動力。
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Okay. Great. I really appreciate all of the interest. Thank you.
好的。偉大的。我真的很感謝大家的興趣。謝謝。
Operator
Operator
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。
Jon Arfstrom - Analyst
Jon Arfstrom - Analyst
Thanks. Good morning. Can you hear me okay?
謝謝。早安.你聽得到我說話嗎?
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Yeah.
是的。
Jon Arfstrom - Analyst
Jon Arfstrom - Analyst
Okay. Maybe for Mark or Tom, back on slide 15, and that upper left box, it seems like a good outcome with only $2 million modified. Curious if that outcome was surprising at all to you? And when you look at the cadence of what's coming? Do you expect similar type outcomes over the next few quarters than what you just experienced this past quarter?
好的。也許對於馬克或湯姆來說,回到幻燈片 15,以及左上角的方框,只需修改 200 萬美元,這似乎是一個很好的結果。好奇這個結果是否令您感到驚訝?當你看看即將發生的事情的節奏時?您預計未來幾季會出現與上個季度類似的結果嗎?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
I think not a surprise for us who live with the portfolio in a forward-looking way. We point to our conservative underwriting, our initial sizing of loans so that by time of maturity, we see reduced principal amount through amortization and improved NOI on the majority of asset classes outside of office and rent-stabilized multifamily. We're seeing strong metrics in retail, industrial, and market rate multifamily in our primary markets. So NOI growth coupled with prudent sizing at origination on these loans. We're not so surprised by the good results that we're seeing in the refinancing side.
我認為對於我們這些以前瞻性的方式對待投資組合的人來說,這並不奇怪。我們指出,我們的承保保守,我們的初始貸款規模是這樣的,因此到了到期時,我們看到透過攤銷減少了本金,並改善了辦公室以外的大多數資產類別和租金穩定的多戶住宅的NOI。我們在主要市場的零售、工業和多戶住宅市場價格方面看到了強勁的指標。因此,NOI 的成長與這些貸款發放時的審慎規模相結合。我們對再融資方面看到的良好結果並不感到驚訝。
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Maybe, John, just one thing I wanted to add to that. I think when you look at the bottom of that chart, we talk about the borrower contractual rate there. And I know that's been a big issue for many within the industry is there's been a significant increase in what that rate is for many of these borrowers as they readjust.
也許,約翰,我想補充一件事。我認為當您查看該圖表的底部時,我們會討論那裡的借款人合約利率。我知道對於業內許多人來說這是一個大問題,因為許多藉款人在重新調整時利率大幅上升。
For us, you're looking at a rate, obviously, for what's coming due in third quarter of '24 at 7.63%. So there really isn't a huge adjustment for many of the borrowers. And you can see what that looks like as we continue to move forward. So I think one of the common issues for many of our peers out there as they have to reset these borrowers to higher rates and what that does to the underlying debt service coverage ratio really isn't as significant for us.
對我們來說,顯然,您所關注的是 2024 年第三季到期的利率 7.63%。因此,對於許多藉款人來說,實際上並沒有進行巨大的調整。當我們繼續前進時,您可以看到它的樣子。因此,我認為我們許多同行面臨的共同問題之一是,他們必須將這些借款人重新設定為更高的利率,而這對基礎償債覆蓋率的影響對我們來說並不那麼重要。
Jon Arfstrom - Analyst
Jon Arfstrom - Analyst
Okay. Yes. That's a good point. Maybe for Mike or Travis, maybe an obvious answer, but the higher end and the lower end of the quarterly NII growth, anything you would call out for us to think about in terms of how you get to the higher end or the lower end on that guide?
好的。是的。這是一個很好的觀點。也許對於 Mike 或 Travis 來說,也許是一個顯而易見的答案,但是季度 NII 增長的高端和低端,您提出的任何問題都可以讓我們考慮如何達到高端或低端那個指南?
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Now, we just know there's a diversity of opinion maybe on the outcome for interest rates, and there's only had a slight impact on our NII at the end of the day, but there is nothing material. I mean also the other factor would obviously be giving ourselves a range of growth we gave you growth guidance of low single digits. And so that can mean a couple of different things, and that would be factored in there as well.
現在,我們只知道對於利率的結果可能有不同的意見,並且最終只對我們的 NII 產生了輕微的影響,但沒有什麼實質的影響。我的意思是,另一個因素顯然會為我們帶來一系列的成長,我們給了你低個位數的成長指引。因此,這可能意味著一些不同的事情,這也將被考慮在內。
Jon Arfstrom - Analyst
Jon Arfstrom - Analyst
Yeah. Okay. And then just last one. You guys talked earlier about the C&I growth, maybe being more lumpy or erratic. Can you talk a little bit about the pipeline there? And what -- it feels like it's going to be commercial driven loan growth in that CRE. So just help us understand what the pipeline looks like. Thank you.
是的。好的。然後就是最後一張。你們之前談到了 C&I 的成長,可能會更加不穩定或不穩定。您能談談那裡的管道嗎?感覺這將是商業房地產中商業驅動的貸款成長。因此,請幫助我們了解管道的樣子。謝謝。
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
Thomas Iadanza - President of Valley and Valley National Bank, Chief Banking Officer
John, it's Tom. Pipeline actually increased 30% quarter-over-quarter. And the pipeline is very stable growing. We're seeing a lot of it coming out of those relationships, specialty national businesses as well as our Florida region, steady in the Northeast, but a higher percent growth on both what we originated in the past quarter and what our pipeline is looking at going forward. So we expect to maintain the guidance of what we put out in the low single digits for the second half of the year driven primarily by C&I.
約翰,是湯姆。管道實際上比上一季增加了 30%。而且管道正在非常穩定地成長。我們看到很多來自這些關係、專業全國性企業以及我們的佛羅裡達地區,東北部穩定,但我們上個季度的起源和我們的管道正在尋找的產品都有更高的百分比增長繼續前進。因此,我們預計下半年的指引將維持在較低的個位數,主要由工商業推動。
Jon Arfstrom - Analyst
Jon Arfstrom - Analyst
Okay. Thanks, guys.
好的。謝謝,夥計們。
Operator
Operator
Jared Shaw, Barclays.
賈里德·肖,巴克萊銀行。
Jared Shaw - Analyst
Jared Shaw - Analyst
Hey. Good morning. Thanks. Maybe just going back to the criticized and classified, what was the -- what would the growth have been without the reclassification of personal guarantee?
嘿。早安.謝謝。也許回到批評和分類的問題,如果沒有個人擔保的重新分類,成長會怎麼樣?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Hey, Jared. This is Mark. I don't have the breakout specifically, but the majority of the migration this quarter was related to our approach on personal guarantees.
嘿,賈里德。這是馬克。我沒有具體的突破,但本季的大部分遷移與我們的個人擔保方法有關。
Jared Shaw - Analyst
Jared Shaw - Analyst
Okay. All right. That's good. Thanks. And then just sort of following up on Chris' question. Was the -- did you see -- have you seen weaker performance than expected maybe on some of the loans that have gone nonperforming with personal guarantees. Was that part of the driver of that change?
好的。好的。那挺好的。謝謝。然後跟進克里斯的問題。您是否看到一些因個人擔保而出現不良貸款的表現可能比預期弱?這是這項變化的驅動因素之一嗎?
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
Mark Seager - Executive Vice President of Valley and Chief Credit Officer of Valley National Bank
No. Absolutely not. Again, this is just a conservative approach to risk rating and specific provisioning. What we've seen to date is consistent with our historic record that those loans with guarantees do have more positive outcomes, and it continues to be an important part of our credit structure and will continue to be on a go-forward basis.
不,絕對不是。同樣,這只是風險評級和具體準備金的保守方法。到目前為止,我們所看到的情況與我們的歷史記錄一致,即這些有擔保的貸款確實產生了更積極的成果,而且它仍然是我們信貸結構的重要組成部分,並將繼續向前發展。
Jared Shaw - Analyst
Jared Shaw - Analyst
Okay. Thanks a lot. And shifting to the deposits, I think Tom had said that July averages were trending higher. Is that trending higher than the average second quarter or the end of period second quarter or both maybe on the deposit side?
好的。多謝。轉向存款,我認為湯姆說過七月的平均水平呈上升趨勢。這一趨勢是否高於第二季度平均或第二季度期末或兩者都可能在存款方面?
Travis Lan - IR Contact Officer
Travis Lan - IR Contact Officer
Yeah. It's relative. We made the statement relative to the average for the second quarter. And from a customer perspective, that would be for the end of period as well. So customer deposits on an average basis in July are slightly higher than the end of the quarter.
是的。這是相對的。我們是根據第二季的平均水平做出這項聲明的。從客戶的角度來看,這也將是在期末。因此,7月的平均客戶存款略高於季末。
Jared Shaw - Analyst
Jared Shaw - Analyst
Okay. And then just finally for me, when you look at the delta and the rates that you're getting on your customer deposits versus your brokered deposits. And then I just was checking what your specials are at sort of 4.50%. Why not pay up a little bit more on the customer side because it feels -- I don't know, it seems like you'd be able to get something still cheaper than the brokerage side. Is there a reason that you're leaning in more on the brokerage side here versus paying up a little bit more on core customer accounts?
好的。最後對我來說,當你查看客戶存款與經紀存款的增量和利率。然後我只是檢查一下你們的 4.50% 特價商品。為什麼不在客戶方面多付一點錢,因為感覺——我不知道,似乎你能夠得到比經紀方面更便宜的東西。您更傾向於經紀業務,而不是在核心客戶帳戶上支付更多費用,這是否有原因?
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
It's obviously a conversation we have a lot internally with regard to our deposit pricing committees. I think a lot of it has to do on what potential migration looks like from a relationship client perspective. Keep in mind, many of these clients have been here for a very long time. They have sizable deposits with us.
顯然,我們內部就存款定價委員會進行了許多對話。我認為這很大程度上與從關係客戶的角度來看潛在的遷移是什麼樣子有關。請記住,其中許多客戶已經在這裡待了很長時間了。他們在我們這裡有大量存款。
And if they see a higher rate, many of them want that higher rate as well. I think the other piece is the broker have a shorter-term duration and the ability to think about where maybe market interest rates are going and to keep short on the curve is probably a positive for us.
如果他們看到更高的利率,他們中的許多人也希望更高的利率。我認為另一件事是經紀人的期限較短,並且能夠思考市場利率的走向並保持短期曲線對我們來說可能是積極的。
Jared Shaw - Analyst
Jared Shaw - Analyst
Okay. Thanks a lot. I appreciate the question.
好的。多謝。我很欣賞這個問題。
Operator
Operator
This conclude today's Q&A (technical difficulty) Ira for closing remarks. Please go ahead.
今天的問答(技術難度)Ira 結語到此結束。請繼續。
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
Ira Robbins - Chairman of the Board, Chief Executive Officer of Valley National Bank
I want to thank everyone for joining us today and for the interest in Valley. And we look forward to talking to you next quarter. Thank you.
我要感謝大家今天加入我們以及對 Valley 的興趣。我們期待下個季度與您交談。謝謝。
Operator
Operator
Thank you all for joining today's conference. You may now disconnect.
感謝大家參加今天的會議。您現在可以斷開連線。