Webster Financial Corp (WBS) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Webster Financial Corporation Second Quarter 2023 Earnings Call. Please note this event is being recorded. I would now like to introduce Webster's Director of Investor Relations, Emlen Harmon to introduce the call. Mr. Harmon, please go ahead.

早上好，歡迎參加韋伯斯特金融公司 2023 年第二季度財報電話會議。請注意此事件正在被記錄。現在我想請韋伯斯特投資者關係總監埃姆倫·哈蒙 (Emlen Harmon) 介紹此次電話會議。哈蒙先生，請繼續。

Good morning. Before we begin our remarks, I want to remind you that the comments made by management may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the safe harbor rules. Please review the forward-looking disclaimer and safe harbor language in today's press release and presentation for more information about risks and uncertainties, which may affect us. The presentation and accompanying management's remarks can be found on the company's Investor Relations website at investors.websterbank.com.

早上好。在我們開始發言之前，我想提醒您，管理層發表的評論可能包括 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，並受到安全港規則的約束。請查看今天的新聞稿和演示文稿中的前瞻性免責聲明和安全港語言，以了解有關可能影響我們的風險和不確定性的更多信息。演示文稿和隨附的管理層評論可在公司投資者關係網站 Investors.websterbank.com 上找到。

I'll now turn it over to Webster Financial CEO, John Ciulla.

現在我將把它交給韋伯斯特金融公司首席執行官約翰·丘拉 (John Ciulla)。

Thanks, Emlen. Good morning, and welcome to Webster Financial Corporation's Second Quarter 2023 Earnings Call. We appreciate you joining us this morning. I'll provide remarks on our high-level results and operations before turning it over to Glenn to cover our financial results in greater detail. Webster's results in the quarter illustrate the competitive advantages of our funding profile while we experienced some temporary NIM headwinds as we pulled liquidity onto our balance sheet early in the quarter, overall, our diverse and distinctive deposit gathering channels provided steady funding as we grew deposits significantly and increased our off-balance sheet liquidity. Glenn will provide more specific detail on balance sheet trends in his remarks.

謝謝，埃姆倫。早上好，歡迎參加韋伯斯特金融公司 2023 年第二季度財報電話會議。我們感謝您今天早上加入我們。我將先對我們的高水平業績和運營情況進行評論，然後再將其轉交給格倫，以更詳細地介紹我們的財務業績。韋伯斯特本季度的業績說明了我們資金狀況的競爭優勢，雖然我們在本季度初將流動性引入資產負債表時經歷了一些暫時的淨息差逆風，但總體而言，隨著我們存款的大幅增長，我們多樣化且獨特的存款收集渠道提供了穩定的資金並增加了我們的表外流動性。格倫將在講話中提供有關資產負債表趨勢的更具體細節。

In the face of industry challenges, we are proud of our financial performance in the quarter. On an adjusted basis, we generated EPS of $1.50 while we saw a modest 1.9% quarter-over-quarter decline in net interest income, we anticipate a positive trajectory through the remainder of the year. Our other income statement lines exhibited positive trends as we grew noninterest income and maintained flat expenses. Despite maintaining a higher-than-normal liquidity position, we generated an adjusted ROA of just under 1.4% and an adjusted return on tangible common equity of 20.4%, we grew our deposits by over 6% in the quarter.

面對行業挑戰，我們對本季度的財務業績感到自豪。調整後的每股收益為 1.50 美元，而淨利息收入環比小幅下降 1.9%，我們預計今年剩餘時間將呈現積極的軌跡。隨著非利息收入的增長和支出的保持不變，我們的其他損益表項目也呈現出積極的趨勢。儘管流動性頭寸保持高於正常水平，但調整後的資產回報率略低於 1.4%，調整後的有形普通股回報率為 20.4%，本季度存款增長超過 6%。

Our robust funding profile positioned us to continue to serve our clients, and we grew our loan book by 1.4%. Our strong deposit growth allowed us to reduce our loan-to-deposit ratio to 88%, which provides us balance sheet flexibility as we move forward.

我們強勁的資金狀況使我們能夠繼續為客戶提供服務，我們的貸款賬簿增長了 1.4%。強勁的存款增長使我們能夠將貸存比率降低至 88%，這為我們的前進提供了資產負債表的靈活性。

If you turn to Slide 3, I want to reemphasize the unique funding model that enabled this performance we have a diverse set of deposit-generating businesses, each with distinct client dynamics. This model provides us with a funding advantage as characteristics of the various businesses partially mitigate the effects of general industry deposit outflows. While we are not immune to the higher funding costs the banking industry is experiencing, we like our competitive positioning on that front, and we have the ability to grow core deposits through environments in which others are challenged.

如果你翻到幻燈片 3，我想再次強調實現這一業績的獨特融資模式，我們擁有一系列多樣化的存款業務，每個業務都有不同的客戶動態。這種模式為我們提供了資金優勢，因為各種業務的特點部分減輕了一般行業存款外流的影響。雖然我們不能倖免於銀行業正在經歷的更高的融資成本，但我們喜歡我們在這方面的競爭地位，並且我們有能力在其他人面臨挑戰的環境中增加核心存款。

Our consumer deposits are largely originated in footprint to long-tenured clients. Our $8 billion plus of HSA deposits are all in individual customer accounts and nearly all are within FDIC insurance limits. As most of you are aware, this is a particularly unique source of low-cost and long-duration deposits. Within Commercial Banking, we have $2 billion of business banking deposits that share similar characteristics to the consumer book. The remainder of commercial deposits are diverse by industry, customer type and geography and are aligned with our relationship banking model. And finally, interLINK, a platform we acquired earlier this year provides readily available core deposit funding at a low cost of acquisition with nearly all deposits covered by FDIC insurance.

我們的消費者存款主要源自長期客戶的足跡。我們超過 80 億美元的 HSA 存款全部存入個人客戶賬戶，而且幾乎全部都在 FDIC 保險限額之內。正如你們大多數人所知，這是一個特別獨特的低成本和長期存款來源。在商業銀行業務中，我們擁有 20 億美元的商業銀行存款，其特徵與消費者賬戶相似。其餘商業存款因行業、客戶類型和地理位置而異，並與我們的關係銀行模式保持一致。最後，我們今年早些時候收購的平台 interLINK 以較低的收購成本提供現成的核心存款資金，幾乎所有存款都由 FDIC 保險承保。

On Slide 4, you can see that not only did we grow deposits smartly, but immediately available liquidity also increased to $18 billion, which covers just under 125% of our uninsured and uncollateralized deposits. Our balance sheet remains in exceptionally sound condition. As Glenn will discuss further on subsequent slides, things remain stable from an overall credit perspective. While we do not see any significant signs of broad credit weakness, we continue to act prudently and proactively with respect to managing our existing loan portfolio and onboarding new credit given the existing macro uncertainties.

在幻燈片 4 上，您可以看到，我們不僅巧妙地增加了存款，而且立即可用的流動性也增加到 180 億美元，覆蓋了我們未保險和無抵押存款的近 125%。我們的資產負債表仍然處於異常健康的狀態。正如格倫將在後續幻燈片中進一步討論的那樣，從整體信用角度來看，情況保持穩定。儘管我們沒有看到任何廣泛信貸疲軟的明顯跡象，但考慮到現有的宏觀不確定性，我們將繼續在管理現有貸款組合和引入新信貸方面採取謹慎和積極的行動。

I want to once again touch briefly on our office portfolio. You can see that on Slide 5, as that has continued, I know to be an area of market focus. We have proactively reduced the size of our nonmedical office portfolio, which is now down by almost $400 million over the last year or roughly 25%. We've done so without incurring significant losses as our charge-off rate on this relatively small portion of the office portfolio is under 2% on an annualized basis. The overall credit characteristics of this portfolio have not changed materially, as you can see in the figures we provide on LTVs, debt service coverage and other metrics. While our criticized and classified loans are up modestly from last quarter, they are down relative to fourth quarter and the year ago period given the proactive actions we've taken.

我想再次簡要談談我們的辦公室組合。您可以在幻燈片 5 上看到，隨著這種情況的持續，我知道這是市場關注的一個領域。我們主動縮小了非醫療辦公室投資組合的規模，目前比去年減少了近 4 億美元，即大約 25%。我們這樣做並沒有造成重大損失，因為我們辦公樓投資組合中相對較小部分的沖銷率按年化計算低於 2%。正如您在我們提供的貸款價值比、償債覆蓋率和其他指標的數據中看到的那樣，該投資組合的整體信用特徵沒有發生重大變化。雖然我們的批評和分類貸款較上季度略有增加，但鑑於我們採取的積極行動，它們相對於第四季度和去年同期有所下降。

Consistent with my comments above, while we are pleased with performance to date, we fully appreciate the changing dynamics in commercial real estate, and we continue to manage our portfolios and credit selection accordingly and prudently.

與我上述評論一致，雖然我們對迄今為止的業績感到滿意，但我們充分認識到商業房地產不斷變化的動態，我們將繼續相應、審慎地管理我們的投資組合和信貸選擇。

I'll now turn it over to Glenn to provide more details on the quarter.

我現在將其轉交給格倫，以提供有關本季度的更多詳細信息。

Thanks, John, and good morning, everyone. I'll start on Slide 6 with our GAAP and adjusted earnings. We reported GAAP net income to common shareholders of $231 million earnings per share of $1.32. On an adjusted basis, we reported net income to common shareholders of $261 million and EPS of $1.50, excluding onetime merger-related expense of $30 million. Merger expenses were primarily related to professional fees, severance and technology costs.

謝謝約翰，大家早上好。我將從幻燈片 6 開始介紹我們的 GAAP 和調整後收益。我們向普通股股東公佈的 GAAP 淨利潤為 2.31 億美元，每股收益 1.32 美元。在調整後的基礎上，我們向普通股股東報告的淨利潤為 2.61 億美元，每股收益為 1.50 美元，不包括一次性合併相關費用 3000 萬美元。合併費用主要與專業費用、遣散費和技術成本有關。

Next, I'll review our balance sheet trends, beginning on Slide 7. Total assets were $74 billion at period end, down $800 million from the first quarter largely as a result of shifting from on balance sheet cash to off-balance sheet liquidity sources. At quarter end, we held $1 billion in cash on the balance sheet, which approximates the level of cash we anticipate holding going forward. Loan growth was $700 million, principally driven by Commercial Banking. Our security balances were relatively flat in the quarter as were reinvested proceeds from maturities and sales. Deposits grew $3.5 billion in the quarter and reduced our borrowings by more than $4 billion. Deposit growth was achieved despite a $700 million seasonal decline in public funds quarter-over-quarter.

接下來，我將從幻燈片 7 開始回顧我們的資產負債表趨勢。期末總資產為 740 億美元，比第一季度減少 8 億美元，主要是由於從表內現金轉向表外流動性來源。截至季度末，我們的資產負債表上持有 10 億美元現金，這大約是我們預計未來持有的現金水平。貸款增長 7 億美元，主要由商業銀行業務推動。本季度我們的證券餘額相對持平，到期日和銷售的再投資收益也是如此。本季度存款增加了 35 億美元，借款減少了超過 40 億美元。儘管公共資金季度環比季節性下降 7 億美元，但存款仍實現增長。

As a result of the loan and deposit growth, our loan-to-deposit ratio was 88% at quarter end, down from 92% from prior quarter. Our capital levels remain strong. Common equity Tier 1 ratio was 10.66% and our tangible common equity ratio was 7.23%. Tangible book value increased to $29.69 a share with retained earnings exceeding the impact of AOCI and a small share repurchase. Unrealized security losses included intangible book value increased to $645 million after tax from $560 million last quarter, driven by higher rates.

由於貸款和存款增長，季度末我們的貸存比率為 88%，低於上一季度的 92%。我們的資本水平依然強勁。一級普通股權益比率為 10.66%，有形普通股權益比率為 7.23%。有形賬面價值增至每股 29.69 美元，留存收益超過了 AOCI 和小額股票回購的影響。由於利率上升，未實現的擔保損失包括無形賬面價值從上季度的 5.6 億美元增加到稅後 6.45 億美元。

In a steady interest rate environment, we anticipate roughly $100 million of this will accrete back into capital annually. Loan trends are highlighted on Slide 8. Total, we grew loans by $700 million or 1.4% on a linked-quarter basis. Loan growth was concentrated in the Commercial Bank, where we continue to see opportunities in strategic segments. C&I grew $85 million with an additional $125 million in sponsor. Commercial real estate was up $150 million. Mortgage warehouse grew $235 million, consistent with seasonal trends and residential mortgage grew $140 million. The yield on our portfolio increased 26 basis points. Excluding accretion, the loan yield increased 27 basis points.

在穩定的利率環境下，我們預計每年其中大約 1 億美元將重新轉化為資本。幻燈片 8 突出顯示了貸款趨勢。總計，我們的貸款環比增長了 7 億美元，即 1.4%。貸款增長集中在商業銀行，我們繼續在戰略領域看到機會。 C&I 增加了 8500 萬美元，其中讚助商增加了 1.25 億美元。商業地產增長了 1.5 億美元。抵押貸款倉庫增長了 2.35 億美元，與季節性趨勢一致，住宅抵押貸款增長了 1.4 億美元。我們投資組合的收益率增加了 26 個基點。不計增值，貸款收益率上升27個基點。

Floating and periodic loans remained at 60% of total at quarter end.

截至季度末，浮動貸款和定期貸款仍佔總貸款的 60%。

We provide additional detail on deposits on Slide 9. Total deposits of $3.5 million from prior quarter were 6.2%. Growth was primarily driven by interLINK and time deposits. Time deposit growth was driven by $1.9 billion of brokered deposits and $900 million in consumer banking CDs. Roughly half the consumer time deposit growth was from existing clients shifting into higher-yielding products. A quarter was from the balanced increase of existing clients and 1/4 of the growth came from new clients. Commercial deposits grew $700 million when excluding the seasonal decline in public funds. We have started to recapture funds that were diversified across financial institutions earlier this year. We're seeing new opportunities for growth in transactional accounts.

我們在幻燈片 9 上提供了有關存款的更多詳細信息。總存款為 350 萬美元，較上一季度增長 6.2%。增長主要由 interLINK 和定期存款推動。定期存款的增長是由 19 億美元的經紀存款和 9 億美元的消費銀行存款單推動的。大約一半的消費者定期存款增長來自現有客戶轉向高收益產品。四分之一來自現有客戶的均衡增長，1/4的增長來自新客戶。扣除公共資金的季節性下降後，商業存款增長了 7 億美元。今年早些時候，我們已開始收回在金融機構中分散投資的資金。我們看到了交易賬戶增長的新機會。

Our total deposit costs were up 61 basis points to 172 basis points for a cumulative cycle-to-date total deposit beta of 34%.

我們的總存款成本上升了 61 個基點，達到 172 個基點，週期迄今的累計總存款貝塔值為 34%。

On Slide 10, we have updated the forward progression of our deposit beta assumptions. We anticipate a total cumulative deposit beta of 40% by the first quarter of 2024, which is up modestly from our prior projection due to client preferences for higher-yielding deposit products. As you can see in the chart on the right, we expect the pace of our deposit cost increase to moderate over the next few quarters.

在幻燈片 10 上，我們更新了存款貝塔假設的前向進展。我們預計到 2024 年第一季度，總累積存款貝塔值為 40%，由於客戶對高收益存款產品的偏好，該數字比我們之前的預測略有上升。正如您在右圖中看到的那樣，我們預計未來幾個季度存款成本的增長速度將放緩。

Moving to Slide 11. We highlight our reported to adjusted income statement compared to our adjusted earnings for the prior period. Net interest income was down $11.5 million or 1.9% linked quarter, primarily reflecting increased funding costs. Adjusted noninterest income was up $2 million while expenses remained effectively flat. The net interest margin was 3.35%, down 31 basis points from prior quarter were 12 basis points from temporary actions to increase our liquidity position. And the efficiency ratio was 42%. I'll discuss each major on -- line item on subsequent slides.

轉到幻燈片 11。我們重點介紹了我們報告的調整後損益表與上一期間調整後收益的比較。淨利息收入環比下降 1,150 萬美元，即 1.9%，主要反映了融資成本的增加。調整後的非利息收入增加了 200 萬美元，而支出實際上保持不變。淨息差為 3.35%，較上季度下降 31 個基點，其中 12 個基點是由於我們採取臨時措施增加流動性頭寸所致。效率為42%。我將在後續幻燈片中討論每個專業。

On Slide 12, we highlight net interest income, which declined $11.5 million in the linked quarter or 1.9%. Net interest margin, excluding accretion, decreased 30 basis points from the prior quarter. Our yield on earning assets, excluding accretion, increased 24 basis points over prior quarter and the total cost of funds was up 58 basis points. The change in the cost of funds was driven by mix change in deposits as well as additional liquidity we added early in the quarter. A significant driver for the linked quarter decline in NIM with an increase in the average balance sheet liquidity of $2.6 billion. While this did not impact net interest income it has a 12 basis point impact on our NIM relative to prior quarter. Higher funding costs drove the remainder of the decline in deposit competition increased.

在幻燈片 12 中，我們重點介紹了淨利息收入，該收入在相關季度下降了 1,150 萬美元，即 1.9%。淨息差（不包括增值）較上一季度下降 30 個基點。我們的盈利資產收益率（不包括增值）比上一季度增加了 24 個基點，總資金成本增加了 58 個基點。資金成本的變化是由存款組合變化以及我們在本季度初添加的額外流動性推動的。平均資產負債表流動性增加 26 億美元，這是導致季度淨息差下降的重要推動因素。雖然這並沒有影響淨利息收入，但與上一季度相比，它對我們的淨息差產生了 12 個基點的影響。融資成本上升帶動剩餘存款競爭加劇下降。

On Slide 13, we highlight our noninterest income for the quarter. On an adjusted basis, noninterest income was up $2 million linked quarter the primary driver was an increased valuation marks on the client hedging activity. Transaction activity tied to commercial clients remained slow in the second quarter, but we're seeing some signs of modest improvement in the coming quarters. The year-over-year decrease was primarily driven by $12 million in lower client hedging activity, $7 million lower loan-related fees, $6 million of lower client deposit fees, $4 million due to the outsourcing of our consumer investment services platform.

在幻燈片 13 中，我們重點介紹了本季度的非利息收入。調整後的季度非利息收入增加了 200 萬美元，主要驅動因素是客戶對沖活動的估值增加。第二季度與商業客戶相關的交易活動仍然緩慢，但我們看到未來幾個季度出現一些適度改善的跡象。同比下降的主要原因是客戶對沖活動減少了 1200 萬美元，貸款相關費用減少了 700 萬美元，客戶存款費用減少了 600 萬美元，由於我們的消費者投資服務平台外包而減少了 400 萬美元。

Noninterest expense is on Slide 14. We reported adjusted expense of $303 million, in line with the prior quarter. A reduction in professional fees and technology expense was offset by higher employee benefit expense and deposit insurance.

非利息支出位於幻燈片 14 上。我們報告調整後支出為 3.03 億美元，與上一季度持平。專業費用和技術費用的減少被員工福利費用和存款保險費用的增加所抵消。

Slide 15 details components of our allowance for credit losses, which was up $15 million over prior quarter. After recording $20 million in net charge-offs, we incurred $35 million in provision expense to loan growth, representing $8 million and the remainder due to changes in the macroeconomic forecast. You see our allowance coverage to loans increased slightly to 122 basis points.

幻燈片 15 詳細介紹了我們的信貸損失準備金的組成部分，該準備金比上一季度增加了 1500 萬美元。在記錄了 2000 萬美元的淨沖銷後，我們因貸款增長而產生了 3500 萬美元的撥備費用，其中 800 萬美元，其餘部分則由於宏觀經濟預測的變化而產生。您會看到我們的貸款準備金覆蓋率略有增加至 122 個基點。

Slide 16 highlights our key asset quality metrics. On the upper left, nonperforming assets increased $35 million from prior quarter and nonperforming loans represent 42 basis points of loans. Nonperforming assets remain within the range of the past year and are down $28 million from a year ago.

幻燈片 16 重點介紹了我們的關鍵資產質量指標。在左上方，不良資產較上一季度增加了 3500 萬美元，不良貸款佔貸款的 42 個基點。不良資產保持在去年的範圍內，比去年同期減少了 2800 萬美元。

Commercial classified loans as a percent of commercial loans declined to 1.39% or 1.47% as classified loans declined $25 million on an absolute basis.

商業分類貸款佔商業貸款的百分比下降至 1.39% 或 1.47%，分類貸款絕對數量減少了 2500 萬美元。

Net charge-offs in the upper right totaled $20 million or 16 basis points of average loans on an annualized basis. Notably, we divested $80 million in commercial real estate loans in the quarter. Vast majority of which were secured by office properties. These divestitures generated $13 million charge-offs.

右上角的淨沖銷總額為 2000 萬美元，相當於年化平均貸款的 16 個基點。值得注意的是，我們在本季度剝離了 8000 萬美元的商業房地產貸款。其中絕大多數是由辦公物業擔保的。這些資產剝離產生了 1300 萬美元的沖銷。

On Slide 17, we continue to maintain strong capital levels. All capital levels remain in excess of regulatory and internal targets. Our Common Equity Tier 1 ratio was 10.66%, and our tangible common equity ratio was 7.23%. Tangible book value increased to $29.69 a share. Including the AFS mark, on our securities portfolio, Common equity Tier 1 ratio would be approximately 9.4% as of June 30. We don't anticipate it will be subject to explicit changes to the regulatory capital requirements, but are well prepared for any potential changes as evidenced by our capital ratios inclusive of AOCI and our strong liquidity position.

在幻燈片 17 中，我們繼續保持強勁的資本水平。所有資本水平仍然超過監管和內部目標。我們的一級普通股比率為 10.66%，有形普通股比率為 7.23%。有形賬面價值增至每股 29.69 美元。截至6 月30 日，包括AFS 標記在內，我們的證券投資組合中普通股一級資本比率約為9.4%。我們預計監管資本要求不會發生明確變化，但已為任何潛在的潛在變化做好了充分準備我們的資本比率（包括 AOCI）和強大的流動性狀況證明了這一變化。

I'll wrap up my comments on Slide 18 with our full year outlook. We expect to grow loans in the range of 4% to 6% with growth focused in strategic segments. We expect to grow core deposits 8% to 10% and the year-end loan-to-deposit ratio in the mid-80s. We expect net interest income of $2.350 billion, $2.375 billion on a non-FTE basis, excluding accretion. Approximately $25 million in accretion would be added to that net interest income outlook. For those modeling net interest income on an FTE basis, I would add roughly $65 million to the outlook.

我將用我們的全年展望來總結我對幻燈片 18 的評論。我們預計貸款增長 4% 至 6%，增長重點在戰略領域。我們預計核心存款將增長8%至10%，年末貸存比將增長至80年代中期。我們預計淨利息收入為 23.5 億美元，按非 FTE 計算為 23.75 億美元（不包括增值）。淨利息收入前景將增加約 2500 萬美元。對於那些以 FTE 為基礎對淨利息收入進行建模的人，我會在展望中增加大約 6500 萬美元。

Our net interest income outlook includes the growth expectations above along with the 25 basis point Fed hike next week. We assume the Fed funds rate will remain flat for the remainder of 2023 at 5.5%. We currently expect NIM to improve by 10 to 15 basis points from the second quarter level to the remainder of the year. Noninterest income should be in the range of $355 million to $365 million. Core expenses are expected to be in the $1.2 billion, $1.225 billion range with an efficiency ratio in the 40% to 42% range. We expect our effective tax rate in the range of 22%. We'll continue to be prudent managers of capital. Capital actions will be dependent on the market environment. We continue to target common equity Tier 1 ratio, 10.5%.

我們的淨利息收入展望包括上述增長預期以及美聯儲下週加息 25 個基點。我們假設聯邦基金利率在 2023 年剩餘時間內將保持在 5.5% 不變。我們目前預計淨息差將比第二季度水平到今年剩餘時間改善 10 至 15 個基點。非利息收入應在 3.55 億美元至 3.65 億美元之間。核心費用預計在 12 億美元至 12.25 億美元之間，效率在 40% 至 42% 範圍內。我們預計有效稅率在 22% 範圍內。我們將繼續做謹慎的資本管理者。資本行動將取決於市場環境。我們繼續將普通股一級資本比率目標定為 10.5%。

With that, I'll turn it back over to John for closing remarks.

至此，我將把它轉回給約翰做結束語。

Thanks a lot, Glenn. I'll wrap up my remarks today with a short update on our integration and strategic path forward. We're approaching an important integration milestone this weekend with the conversion of our core operating systems. As many of you are aware, we took a deliberate and thoughtful approach to the conversion of our core. A tremendous amount of work has gone into this event as our team has been working diligently to accomplish the smoothest experience possible for our clients, while at the same time, maintaining the level of service they have come to expect. We completed 3 mock conversions over the first half of 2023 and have been proactively communicating with clients in recent weeks. We've already enabled our entire ATM network to access a consolidated core and our frontline colleagues have been trained on new systems and the procedures.

非常感謝，格倫。我將用關於我們的整合和未來戰略路徑的簡短更新來結束我今天的發言。本週末，我們將通過核心操作系統的轉換實現一個重要的集成里程碑。正如你們許多人所知，我們採取了深思熟慮的方法來轉換我們的核心。此次活動投入了大量的工作，我們的團隊一直在努力工作，為客戶提供最順暢的體驗，同時保持他們所期望的服務水平。我們在 2023 年上半年完成了 3 次模擬轉換，並在最近幾周積極與客戶溝通。我們已經使整個 ATM 網絡能夠訪問統一的核心，我們的一線同事也接受了新系統和程序的培訓。

Several of our back-office systems have already been consolidated, and we're excited to complete this meaningful step from an operational perspective. Post conversion, we'll be able to accelerate our strategic technology plans, and we'll be in a position to further realize additional synergies.

我們的幾個後台系統已經得到整合，我們很高興從運營角度完成這一有意義的步驟。轉換後，我們將能夠加快我們的戰略技術計劃，並且我們將能夠進一步實現額外的協同效應。

I want to thank all of our colleagues who are focused on the conversion, whether in a dedicated role or through our continued focus on taking care of our clients across our footprint. We'll continue to invest in and grow products and capabilities as we deliver a superior experience to our clients and we simplify business processes for colleagues and other business partners. As investors and business partners, you'll continue to see the full capability of this company. Webster's earning power, a strong capital and funding profile, differentiated commercial businesses, colleague, talent and engagement are all attributes that enable Webster to generate peer-leading returns through a variety of operating environments. We'll utilize our strong operating profile and flexible capital position to continue growing share in our key markets and business segments. Allocating our resources to the highest recurring opportunities to maximize economic profit, all within a disciplined risk management framework.

我要感謝所有專注於這一轉變的同事，無論是專注的崗位還是通過我們持續關注在我們的足跡中照顧客戶。我們將繼續投資並發展產品和能力，為客戶提供卓越的體驗，並為同事和其他業務合作夥伴簡化業務流程。作為投資者和業務合作夥伴，您將繼續看到該公司的全部能力。韋伯斯特的盈利能力、強大的資本和資金狀況、差異化的商業業務、同事、人才和敬業度都是韋伯斯特能夠通過各種運營環境產生同行領先回報的屬性。我們將利用我們強大的經營實力和靈活的資本狀況，繼續擴大我們在關鍵市場和業務領域的份額。將我們的資源分配給最高的經常性機會，以實現經濟利潤最大化，所有這些都在嚴格的風險管理框架內進行。

I want to thank you all for joining us today. Operator, with that, Glenn and I will be happy to take questions.

我要感謝大家今天加入我們。接線員，格倫和我將很樂意回答問題。

(Operator Instructions) Your first question comes from Christopher McGratty with Keefe, Bruyette & Woods.

（操作員說明）您的第一個問題來自 Christopher McGratty 和 Keefe、Bruyette & Woods。

Glenn, on the NII, maybe you could talk through the ranges of NII, the range of outcomes. Is it more about the Fed? Is it more about competition? And I guess, what would it take at this point for you to take a different view of NII?

格倫，關於 NII，也許你可以談談 NII 的範圍，即結果的範圍。更多的是關於美聯儲嗎？更多的是競爭嗎？我猜想，此時您需要什麼條件才能對 NII 採取不同的看法？

Yes, thanks. So Chris, I think it is primarily driven by increased deposit costs, increased funding costs as a whole. So that's why we adjusted that range down a little bit. The second part of your question was...

對了謝謝。所以克里斯，我認為這主要是由存款成本增加和整體融資成本增加推動的。這就是為什麼我們稍微調整了這個範圍。你問題的第二部分是......

I'm sorry, Chris, John. It's a combination of our assumption of Feds with one more rate hike and just general deposit competition. As you see, we see NIM expansion coming off this quarter because of the dynamics in our balance sheet, but also because of our floating rate loan book and the pace at which we think deposit costs will grow, plus we have some good guys coming in the third and fourth quarter with respect to kind of core commercial growth seasonal growth in lower-cost government deposits.

對不起，克里斯，約翰。這是我們對美聯儲再次加息的假設和一般存款競爭的結合。正如您所看到的，我們看到本季度淨息差擴張，因為我們資產負債表的動態，也因為我們的浮動利率貸款賬簿和我們認為存款成本將會增長的速度，再加上我們有一些好人進來第三和第四季度的核心商業增長是低成本政府存款的季節性增長。

So that's kind of what factors into where we are with obviously the governor being just overall higher deposit and funding costs industry-wide.

這就是影響我們所處位置的因素，顯然州長只是整個行業的存款和融資成本總體較高。

Got it. In terms of just regulation, you're comfortably below 100, but obviously, I think the market will expect at some point you'll be there. Can you just talk through the expense angle potentially that you're thinking about? And also how you're capital targets may evolve and capital return strategies may evolve?

知道了。就監管而言，你已經輕鬆地低於 100，但顯然，我認為市場會預期在某個時候你會達到這個水平。您能談談您正在考慮的潛在費用角度嗎？您的資本目標和資本回報策略將如何演變？

Yes. Chris, it's a great question. And obviously, we're spending a lot of time thinking about it. I think it's too early to even throw out kind of a wild guess on cost. I think the reality is even if you're at $85 billion, the trickle-down effect of the way you're regulated, you certainly need to begin being prepared. I actually think our infrastructure with respect to stress testing and the way we measure liquidity we've held ourselves to LCR for a long time, even when we didn't have to even premerger.

是的。克里斯，這是一個很好的問題。顯然，我們花了很多時間思考這個問題。我認為現在就放棄對成本的瘋狂猜測還為時過早。我認為現實情況是，即使你的規模達到 850 億美元，但由於監管方式的涓滴效應，你當然需要開始做好準備。事實上，我認為我們在壓力測試方面的基礎設施以及衡量流動性的方式長期以來一直堅持 LCR，即使我們甚至不必進行預合併。

So I think we have the infrastructure to deal with whatever regulations come down. So I think more than internal costs, right? I think the impact would be -- is exactly as you intimated at the end there would be higher capital levels, higher liquidity requirements that would have an economic kind of impact on the bank if we have to hold more liquidity and different types of liquidity and have more capital. But it would be too early to give you kind of our expectations. We're just following it closely. And as I said, I think internally, we have the capabilities, the systems and the people to be able to deal with whatever comes at us as it's phased in over time.

因此，我認為我們擁有應對任何法規出台的基礎設施。所以我認為不僅僅是內部成本，對吧？我認為影響將是——正如你最後暗示的那樣，如果我們必須持有更多的流動性和不同類型的流動性，那麼將會有更高的資本水平、更高的流動性要求，這將對銀行產生經濟影響。有更多的資本。但現在給出我們的期望還為時過早。我們只是密切關注而已。正如我所說，我認為在內部，我們有能力、系統和人員能夠應對隨著時間的推移逐步發生的任何情況。

Yes. And the only thing I would add to that, Chris, as you saw in my comments on our Common Equity Tier 1, even if we were to add in the AFS losses, we'd be at like 9.4% from a 10-plus percent, 10.6%. So that would probably be phased in over time.

是的。克里斯，我唯一要補充的是，正如你在我對我們的普通股一級的評論中看到的那樣，即使我們要添加AFS 損失，我們也會從10% 以上的損失中得到9.4% 的損失。 , 10.6%。因此，隨著時間的推移，這可能會分階段實施。

Okay. And is there any contemplation of a share repurchase given the strength of the balance sheet? Or is it too uncertain on the economy?

好的。鑑於資產負債表的實力，是否考慮進行股票回購？還是經濟的不確定性太大？

No. I think as we go into it, you may have seen, we repurchased $50 million or so of shares to offset grants to employees and colleagues throughout the organization. We certainly have the capability to do it in the second half. I think if we stick to our normal view that I think we're good stewards of capital. So we look at internal opportunities to deploy capital first, we contemplate things like balance sheet restructuring. We look at tuck-in acquisitions for HSA and other things. But if that's not there, and we continue to generate the kind of capital we are and it looks like the credit environment remains stable, you'd see us absolutely looking at share repurchases. But I think it's a matter of time and our view of how stable the ultimate credit environment is as we move through the third and fourth quarter.

不。我想，當我們深入研究時，您可能已經看到，我們回購了大約 5000 萬美元的股票，以抵消對整個組織的員工和同事的補助。我們當然有能力在下半年做到這一點。我認為，如果我們堅持我們的正常觀點，我認為我們是優秀的資本管理者。因此，我們首先考慮部署資本的內部機會，我們考慮資產負債表重組等事情。我們關注 HSA 和其他項目的收購。但如果不存在這種情況，並且我們繼續產生現有的資本，並且信貸環境看起來保持穩定，那麼您就會看到我們絕對會考慮股票回購。但我認為這只是時間問題，以及我們對第三和第四季度最終信貸環境穩定性的看法。

Your next question comes from Casey Haire with Jefferies.

您的下一個問題來自 Jefferies 的 Casey Haire。

Glenn, question on the NIM forecast in the back half of the year. That lift of 10 to 15 bps is that immediate? It feels like it could be given the borrowing where the borrowings ended the quarter? It feels like it was back half weighted. Just some color there. And in the interest -- the spot deposit costs and interest-bearing deposits?

Glenn，關於下半年 NIM 預測的問題。 10 到 15 個基點的提升是那麼立竿見影嗎？感覺可以在季度末的借款處進行借款？感覺就像是減了一半的重量。只是那裡有一些顏色。利息方面——即期存款成本和計息存款？

So, Ciulla just let me hit that. So, yes you're right. I mean, 12 basis points come back to us, and that's the function of the balance sheet liquidity and thus bringing down balances held at the Fed, which were barging 3-plus billion into the second quarter. So if you go back 12 there. You got a 12 -- the other 5 on loan impact. So you have about 2 basis points in NIM coming from the variable book and then another 3 basis points from the fixed book. So that's 5, right?

所以，Ciulla 讓我打那個。所以，是的，你是對的。我的意思是，我們回到了 12 個基點，這是資產負債表流動性的作用，從而減少了美聯儲持有的餘額，而美聯儲在第二季度注入了 3 多億美元。所以如果你回到 12 那裡。你得到了 12 分——另外 5 分是關於貸款影響的。因此，NIM 大約有 2 個基點來自可變賬面，另外 3 個基點來自固定賬面。那是 5，對嗎？

And then the investment portfolio, same sort of thing, pick up about 3 basis points there. And then, of course, further positive repricing. And the thing I pointed out there is it's probably negative 6 to 7 basis points not as severe as it was first quarter, second quarter, obviously, because we've built up some of the key, the higher cost products like interLINK and brokerage CDs. But yes, you should begin to see that come back in beginning in the third quarter significantly. On the second part of your question, I think our exit cost was on deposits, so that's like 184.

然後投資組合，同樣的事情，在那裡回升了大約 3 個基點。當然，然後是進一步積極的重新定價。我指出的是，很可能出現負 6 到 7 個基點，顯然不像第一季度、第二季度那麼嚴重，因為我們已經建立了一些關鍵的、成本較高的產品，如 interLINK 和經紀 CD 。但是，是的，您應該開始看到這種情況在第三季度初顯著回升。關於你問題的第二部分，我認為我們的退出成本是存款，所以大約是 184。

That's total? Or is that interest-bearing?

這就是全部嗎？還是說這個是有利息的？

That's total.

這就是全部。

Okay. And then the beta assumption, 40% through first quarter '24. So I guess, if the Fed is on hold and were higher for longer, is there -- is that beta -- can that 40% beta go higher? And then what is that -- what is the beta forecast assumed for DDA mix at 19% of the total deposits?

好的。然後是貝塔假設，截至 24 年第一季度為 40%。所以我想，如果美聯儲按兵不動，並在較長時間內保持較高水平，那麼 40% 的貝塔值是否會更高？那麼，DDA 組合佔總存款 19% 時的貝塔預測是多少？

Yes. So a couple of things in there. Our forecast is that the Fed increases next week and stays at 550 for the rest of the year. So that ties to that 40% that you're seeing on the slide. So I think that's the first part of your question. I think there is a lag. There has been a lag on Fed increases and how that's trickled down to the deposit base and it's been like a quarter or 2 for the most part. And that's again, why you see some of that acceleration in the second quarter. I think the second part of your question was on DDA deposits as a percent -- was it a percent of total?

是的。裡面有幾件事。我們的預測是美聯儲下週加息，並在今年餘下時間里維持在 550 點。這與您在幻燈片上看到的 40% 相關。所以我認為這是你問題的第一部分。我認為有一個滯後。美聯儲加息以及如何滲透到存款基礎上存在滯後，大多數情況下是四分之一或兩個季度。這也是為什麼你會在第二季度看到一些加速的原因。我認為你問題的第二部分是關於 DDA 存款的百分比——是佔總額的百分比嗎？

And for us, if you look at it, I think, at fourth quarter of 2022, we're a combined organization 25%, right? One of the things that's happened here is we've grown interLINK and broker, so that's increased the total deposit base. So if you look at that for a full year basis, you're probably in the range of 18.5% to 19% by the fourth quarter. If you were to strip out things like interLINK and Broker, you're probably close to 20%, 21%.

對於我們來說，如果你看一下，我認為到 2022 年第四季度，我們的合併組織佔比為 25%，對嗎？這裡發生的事情之一是我們發展了 interLINK 和經紀商，因此增加了總存款基礎。因此，如果你以全年為基礎來看的話，到第四季度你可能會在 18.5% 到 19% 的範圍內。如果剔除 interLINK 和 Broker 之類的東西，您的比例可能接近 20%、21%。

And Casey, it's John. I think your last -- one of your questions in there was what are your assumptions if what happens to beta if the cycle is longer? I think our view is, could it tick up a little more, I guess, but that most of it, they stay flat and higher for longer that most of the beta and most of the increase will be captured by 1Q. You could have a little drift up over time, but we think that the behavior is moderate.

凱西，是約翰。我想你的最後一個問題是，如果週期更長，貝塔會發生什麼，你的假設是什麼？我認為我們的觀點是，我猜它是否可以再上漲一點，但其中大部分，它們在更長的時間內保持持平和更高，以至於大部分貝塔值和大部分增長將在第一季度捕獲。隨著時間的推移，您可能會出現一些偏差，但我們認為這種行為是溫和的。

Yes. Okay. Got it. That's fair on DDA mix, too, on the interLINK growth. Last one for me, just on the capital management front. Did you guys buy back any shares? The share count was lower, but I didn't see any mention of it. And then just any updated thoughts on appetite for buyback activity going forward?

是的。好的。知道了。這對於 DDA 組合以及 interLINK 的增長來說也是公平的。對我來說，最後一個是關於資本管理方面的。大家有回購股票嗎？股份數量較低，但我沒有看到任何提及。那麼對於未來回購活動的興趣有什麼最新的想法嗎？

Yes. Casey, I just mentioned answering McGratty's question that we did about $50 million of share repurchases in the quarter to offset grants to employees. So yes, we did. And I mentioned that we'll have the same sort of disciplined approach. We are generating capital, a good amount of capital, obviously, annually, and we're slightly above our CET1 target. So to the extent we don't have internal opportunities to deploy capital or a really compelling balance sheet restructuring we would look as long as there weren't signs of significant credit deterioration, we would look to deploy some level of capital and share repurchases as we look to the second half of the year.

是的。凱西，我剛剛在回答麥格拉蒂的問題時提到，我們在本季度進行了約 5000 萬美元的股票回購，以抵消對員工的補助。所以是的，我們做到了。我提到我們將採取同樣的嚴格方法。我們正在產生資本，顯然，每年都產生大量資本，而且我們略高於我們的 CET1 目標。因此，在我們沒有內部機會部署資本或真正引人注目的資產負債表重組的情況下，只要沒有重大信用惡化的跡象，我們就會考慮部署一定程度的資本和股票回購，因為我們展望今年下半年。

Your next question comes from Matthew Breese with Stephens Inc.

您的下一個問題來自 Stephens Inc. 的 Matthew Breese。

Maybe to start, could you just give us some idea of what incremental loan yields are today and assuming they're higher, how has that impacted originations and pipeline on a month-to-month basis?

也許首先，您能否讓我們了解一下目前的增量貸款收益率是多少，假設它們更高，這對每月的貸款發放和渠道有何影響？

Yes. It's a complex question. While we get the yields, let me start with credit spreads could be an interesting way to start. So there's no question that I think us like most of the industry are being kind of more demanding and more disciplined in terms of where we're generating loans and how we're generating loans. We have seen increases in credit spreads. So if you think of, obviously, the reference rates and SOFR and prime continue to move up. But we're also seeing a level of expansion. I was talking to the team yesterday in kind of construction-related Cre, you can get 75 basis points plus with respect to additional credit spread from pre-March on other sort of more traditional and predictable Cre outside of office, which obviously people aren't doing. It's more like 50 basis points.

是的。這是一個複雜的問題。在我們獲得收益率的同時，讓我從信用利差開始，這可能是一個有趣的開始方式。因此，毫無疑問，我認為我們像大多數行業一樣，在發放貸款的地點和發放貸款的方式方面要求更高、更嚴格。我們看到信貸利差有所上升。因此，如果你想一想，顯然，參考利率、SOFR 和 Prime 繼續上漲。但我們也看到了一定程度的擴張。我昨天與團隊討論了與建築相關的Cre，從3 月前開始，在辦公室外的其他更傳統和可預測的Cre 上，你可以獲得75 個基點以上的額外信用利差，這顯然是人們所不具備的。你在做什麼。更像是50個基點。

And then on C&I, the teams seeing kind of 25 to 50 basis point expansion in credit spreads. So take those credit spreads over the expanding reference rates, and Glenn can give you the yields.

然後在 C&I 方面，團隊看到信用利差擴大了 25 到 50 個基點。因此，將這些信用利差與不斷擴大的參考利率相比較，格倫可以為您提供收益率。

Yes. So Matt, the yields on both the quarter-to-date and for the month of June were sort of mid-7s right? So obviously, that's going to be driven by mix and product mix. But generally, when we look at the quarter and you look at the months, it's in the mid-7s.

是的。那麼馬特，本季度至今和 6 月份的收益率都在 7 左右，對嗎？顯然，這將由組合和產品組合驅動。但一般來說，當我們查看季度和月份時，它處於 7 年代中期。

Great. And then I was curious on the $80 million in office loans that you divested. I'm just curious how that process went? How liquid was the market for office loan buyers? What kind of comfort does that give you on potential loss content on the rest of the office book? And is there any more you're looking to do there?

偉大的。然後我對你們剝離的 8000 萬美元辦公貸款感到好奇。我只是好奇這個過程是怎樣進行的？寫字樓貸款買家的市場流動性如何？對於辦公簿其他部分可能丟失的內容，這會給您帶來什麼樣的安慰？您還想在那裡做些什麼嗎？

Yes, it's a great question again. And there's not a way to give a kind of definitive quantitative answer. I think we've clearly seen, and as you've seen, I'm really proud of the team. We've reduced office exposure by 25% over the last 4 quarters with really minimal hit to capital and minimal credit loss. There is no question that the amount of liquidity and the eagerness of purchasers in the market for loans is it's more expensive now than it was 4 quarters ago, just given kind of people's view of the market.

是的，這又是一個很好的問題。並且沒有辦法給出明確的定量答案。我想我們已經清楚地看到了，正如你所看到的，我真的為這個團隊感到自豪。在過去 4 個季度中，我們已將辦公室風險敞口減少了 25%，對資本的影響非常小，信用損失也非常小。毫無疑問，鑑於人們對市場的看法，市場上的流動性數量和購買者對貸款的渴望現在比四個季度前更貴。

There still is a lot of liquidity, a lot of private capital, as you know, out there. And so that is encouraging to us in terms of our ability, if we picked good pieces of property to finance at the end of the day, if there's alternative uses for those properties or even if there's been a valuation decline, but there's still clearly equity in the property, we've been able to find buyers. This last quarter, we said that $80 million represented roughly 50% to 60% of our charge-offs in the quarter but we think, obviously, with respect to noncritical and strategic office properties, that's the right move now.

正如你所知，那裡仍然有大量的流動性、大量的私人資本。因此，就我們的能力而言，如果我們最終選擇了優質的房產進行融資，如果這些房產有其他用途，或者即使估值有所下降，但仍然有明顯的股權，這對我們來說是令人鼓舞的在房產方面，我們已經找到了買家。上個季度，我們表示 8000 萬美元約佔本季度沖銷額的 50% 至 60%，但我們認為，顯然，對於非關鍵和戰略性辦公物業，現在這是正確的舉措。

So it's getting more expensive. I think we'll continue to being proactive. We feel really good about the fact that we've paired the portfolio thoughtfully and it's now down to below $1.3 billion nonmedical office but there are buyers of this real estate at a reasonable price still out there, although it's obviously getting more expensive to execute on kind of balance sheet moves like that.

所以越來越貴了。我想我們會繼續積極主動。我們對投資組合進行了深思熟慮的配對，現在非醫療辦公樓的價格已降至13 億美元以下，但仍然有買家以合理的價格購買該房地產，儘管執行起來顯然變得更加昂貴，這一事實讓我們感到非常高興。資產負債表就是這樣變動的。

Great. And then last one for me. In late June, there were some joint interagency guidance from the FDIC, the Fed, the OCC on prudent commercial real estate loan accommodations and workouts and I would like your perspective on how this plays out practically? What does it look like in terms of how you help customers or how you can help customers? What are the expected tools that can be used? And how will these accommodations and workouts be disclosed if and when they occur?

偉大的。然後是我的最後一張。 6 月下旬，FDIC、美聯儲、OCC 就審慎的商業房地產貸款調整和解決問題發布了一些聯合機構間指導意見，我想了解您對這實際上如何發揮作用的看法？在如何幫助客戶或如何幫助客戶方面，情況如何？預期可以使用哪些工具？如果這些調整和鍛煉發生，將如何披露？

Yes, another loaded question that I don't know I can answer with specificity, but I'll give you my perspective, during, obviously, and I'm not going to go back to a history lesson. But in the early '90s, obviously, the regulators with respect to real estate really kill the banking market and accelerated and we're very prescriptive with respect to the way they looked at restructuring during the great financial crisis, when I was Chief Credit Officer here, I thought they were very constructive in terms of making sure that as long as you were realistic with respect to the return you were getting on the loans that they knew it was in everyone's best interest to modify. And we're seeing that general tone and tenor I think, from the regulators, again, which will be constructive.

是的，這是另一個沉重的問題，我不知道我可以具體回答，但顯然，我會在期間向您提供我的觀點，而且我不會回到歷史課。但顯然，在 90 年代初，房地產方面的監管機構確實扼殺了銀行市場並加速了發展，我們對他們在金融危機期間看待重組的方式非常規範，當時我擔任首席信貸官在這裡，我認為他們非常有建設性，可以確保只要你對貸款回報持現實態度，他們就知道修改貸款符合每個人的最佳利益。我認為，我們再次看到監管機構的總體基調和基調，這將是建設性的。

So my view is and in our view at least internally in the bank is you don't want to artificially kick the can forward if there's not a reasonable credit to be renewed. And I think the regulators are still going to hold us accountable to making sure that we're taking appropriate losses. We're recognizing nonaccrual loans and that we're not able to modify things artificially that really aren't good loans. But so far, we're able to work with our sponsors and real estate owners and either get a little bit of additional proceeds. And in consideration, we underwrite a slightly higher LTV. The cap rates have changed the value and so far, Matt, we've seen a kind of a constructive stance and I think from our vantage point, that's really helpful, but it also doesn't give us the opportunity to sort of artificially pick forward alone that really shouldn't be kicked forward.

所以我的觀點是，至少在銀行內部，如果沒有合理的信用需要更新，你不想人為地把罐子向前踢。我認為監管機構仍會讓我們承擔責任，以確保我們承擔適當的損失。我們認識到非應計貸款，並且我們無法人為地修改那些確實不是好貸款的東西。但到目前為止，我們能夠與我們的讚助商和房地產所有者合作，並獲得一點額外的收益。考慮到這一點，我們承保的 LTV 略高。資本化率已經改變了價值，到目前為止，馬特，我們已經看到了一種建設性的立場，我認為從我們的角度來看，這確實很有幫助，但它也不給我們機會人為地選擇單獨向前推進，確實不應該被踢向前。

And I think that's the way the analysts and the investors will see it in that if you don't have enough cash flow to service your loan, you're going to have to take appropriate action and classify and risk rate the loan appropriately. If you've got cash flowing loans, but it's just going to take longer to repay or you've got a higher LTV. I think we're going to have some flexibility in being able to work with the borrowers to a good outcome.

我認為分析師和投資者會這樣看待，如果你沒有足夠的現金流來償還貸款，你將不得不採取適當的行動，對貸款進行適當的分類和風險評級。如果您有現金流貸款，但償還時間較長，或者您的貸款價值比較高。我認為我們將具有一定的靈活性，能夠與借款人合作取得良好的結果。

Great. I appreciate it. I'll leave it there.

偉大的。我很感激。我會把它留在那裡。

Your next question comes from Brody Preston with UBS.

您的下一個問題來自瑞銀集團的布羅迪·普雷斯頓。

I did want to follow up, maybe just on the office line of questioning. So we saw another bank that just reported they sold their medical office portfolio, and it was only like a 2.5% mark. I think maybe it was a bit noncore for them. But I guess could you maybe speak to the puts and takes between maybe keeping even medical office around? Is that a core kind of product for you? Do you have deposits tied to those borrowers? Is that something where as you just evaluate your overall office exposure, even if it's something like medical office, you might look to kind of exit it now as opposed to waiting later down the road?

我確實想跟進，也許只是在辦公室詢問。所以我們看到另一家銀行剛剛報告說他們出售了醫療辦公室投資組合，而且只有 2.5% 左右。我認為這對他們來說可能有點非核心。但我想你能談談甚至保留醫療辦公室之間的安排嗎？這對你來說是一種核心產品嗎？您是否有與這些借款人掛鉤的存款？當你評估你的整體辦公室風險時，即使它是像醫療辦公室這樣的東西，你可能會想現在就退出，而不是稍後再等待？

Yes. Specifically to medical office, I don't think so. It's such a different animal. Right now, it's still really strong. Vacancies are low, rates have held. And so our portfolio is not particularly big. And right now, it's a profitable business and oftentimes. And most of the time, we have ancillary revenue either coming from deposit liquidity or fees or other cash management products.

是的。具體到醫療辦公室，我不這麼認為。這是一種非常不同的動物。現在看來，它的實力還是很強的。空缺率低，利率保持不變。所以我們的投資組合併不是特別大。現在，這是一項有利可圖的業務，而且往往是有利可圖的。大多數時候，我們的輔助收入要么來自存款流動性，要么來自費用或其他現金管理產品。

So I don't think that's in our strategic wheelhouse right now. And I don't think we feel from a credit perspective, it's something we need to do.

所以我認為現在這不在我們的戰略掌控之中。我認為從信用角度來看，我們並不認為這是我們需要做的事情。

Got it. Okay. I did want to just ask on the available-for-sale portfolio. And I'm sorry if I missed it in the deck, but do you happen to have what the effective duration of that portfolio is? And then could you tell me what the assumed conditional prepayment rate you're using in the duration calculus?

知道了。好的。我確實想問一下可供出售的投資組合。如果我在甲板上錯過了它，我很抱歉，但是您是否知道該投資組合的有效期限是多少？然後您能告訴我您在久期計算中使用的假設有條件預付款率是多少嗎？

Sure. So the duration is 3.8 years, and the CPR, we're using it in the high single digits.

當然。所以持續時間是 3.8 年，而 CPR，我們使用的是高個位數。

Got it. Okay. And then I just want to ask just the credit seems to be holding up really well, but it seems like last quarter across the industry, there was a couple of one-offs this quarter across the industry. There's a couple more one-offs. And there's some kind of indication that maybe especially in middle market, maybe you're starting to see some pressure on borrower balance sheets. How are your conversations with borrowers, particularly in middle market evolving today? And how are they handling higher interest rates? And what are some of the key areas of pressure that they're identifying?

知道了。好的。然後我只想問一下，信貸似乎保持得很好，但整個行業似乎上個季度，本季度整個行業出現了一些一次性事件。還有一些一次性的事情。有某種跡象表明，尤其是在中間市場，您可能開始看到借款人的資產負債表面臨一些壓力。您與借款人的對話（尤其是在當今的中間市場）進展如何？他們如何應對更高的利率？他們確定的一些關鍵壓力領域是什麼？

Yes. Again, I'll try and be brief but give you some insights. I think you're right. I think everybody is surprised that credit held on so strongly. And you look at our metrics, we're not seeing correlated risk across portfolios. We're being proactive and obviously, in office, just given the secular dynamics there. I think from a risk rating perspective, if you look across the industry, that was kind of stable, I think, probably now the bias is to the downside. So although, as you said, it's really only resulted in kind of one-offs from a loss perspective. I think most folks in the industry expect there to be a little more bumpy as we go forward in the next several quarters. And it probably is, to your point, the cumulative impact of debt service, higher interest rates, higher input costs, inflationary pressures on wage and other input costs into businesses.

是的。再次，我會盡量簡短，但給你一些見解。我想你是正確的。我認為每個人都對信貸如此強勁地保持感到驚訝。你看看我們的指標，我們沒有看到投資組合之間的相關風險。考慮到那裡的世俗動態，我們在辦公室裡顯然是積極主動的。我認為從風險評級的角度來看，如果你縱觀整個行業，那是一種穩定，我認為，現在的偏見可能是下行。因此，儘管正如您所說，從損失的角度來看，這實際上只是導致了某種一次性的結果。我認為業內大多數人預計未來幾個季度的發展會更加坎坷。在你看來，這可能是償債、更高的利率、更高的投入成本、工資通脹壓力和企業其他投入成本的累積影響。

So we hear it's funny. What we hear mostly from our clients is the same thing, it's about they feel good about demand. They feel good about their customers' confidence, they're still having trouble finding people to either work in their plants or to work on their counter of their service company but no doubt that higher costs, input costs and higher interest rates put more pressure on them, but we're not seeing much capitulation, Brody. And as I said, if you look across all of our different sectors and our geographies which we do all the time to look for any sort of correlated performance behaviors or risk we're not really seeing anything right now. And our charge-offs this quarter at 16 basis points are actually 3 basis points below our 5-year average charge-off rate pre pandemic and 60% of those were on proactive office sales. So it certainly hasn't shown yet through a lot of the statistics.

所以我們聽說這很有趣。我們從客戶那裡聽到的大部分內容都是一樣的，那就是他們對需求感到滿意。他們對客戶的信心感到滿意，但他們仍然很難找到人在他們的工廠工作或在服務公司的櫃檯工作，但毫無疑問，更高的成本、投入成本和更高的利率給他們帶來了更大的壓力。他們，但我們並沒有看到太多投降，布羅迪。正如我所說，如果你縱觀我們所有不同的部門和地區，我們一直在尋找任何相關的績效行為或風險，我們現在並沒有真正看到任何東西。本季度我們的核銷率為 16 個基點，實際上比疫情爆發前 5 年平均核銷率低了 3 個基點，其中 60% 是積極的辦公室銷售。因此，通過大量統計數據肯定還沒有顯示出來。

Got it. Okay. And then one last one for me. And again, I apologize if I missed it. I was hopping from another call. Just on the fee income, I know it's not a huge driver revenue at this point. But I guess, Glenn, what would cause you to kind of be at the high end or the low end of the guidance. And I think the last time we talked, we had spoken maybe about commercial swap activity picking up a little bit in the back half of the year. Do you still feel like that's a possibility?

知道了。好的。然後是最後一張給我的。如果我錯過了，我再次道歉。我正從另一個電話中跳出來。僅就費用收入而言，我知道目前這並不是一個巨大的驅動收入。但我想，格倫，什麼會導致你處於指導的高端或低端。我認為上次我們談話時，我們可能談到了商業互換活動在今年下半年有所回升。您仍然覺得有這種可能性嗎？

Yes. I mean we do see some modest increase in activity. We're forecasting some modest increase in the second back half of the year. But that's all within our guide range as well.

是的。我的意思是，我們確實看到活動略有增加。我們預計今年下半年會有小幅增長。但這也都在我們的指導範圍之內。

Your next question comes from Mark Fitzgibbon with Piper Sandler.

您的下一個問題來自馬克·菲茨吉本和派珀·桑德勒。

John, I heard your comments on credit, and I know this is relatively small dollars, but you had about a $23 million uptick in commercial nonmortgage, nonaccruals this quarter. And it looked like 30 to 89-day delinquencies in that bucket also went up. Is there anything unique to that bucket or any particular industry that's being challenged?

約翰，我聽到了您對信貸的評論，我知道這是相對較小的美元，但本季度商業非抵押貸款、非應計費用增加了約 2300 萬美元。看起來 30 到 89 天的拖欠率也有所增加。該桶或任何受到挑戰的特定行業有什麼獨特之處嗎？

No. The delinquencies are mostly administrative. I would say that the two, one was a nonoffice Cre and one was a C&I loan. We had a couple of credits that led to that. They were really kind of one-off I was talking with Jason Soto, chief Credit Officer, who said, you try and look for dynamics there, and it really was more idiosyncratic management missteps. So it happens inflows and outflows, and we work at it proactively. But I again, I haven't seen anything there that leads that there's a parade of issues behind either of those credits.

不。拖欠行為主要是行政行為。我想說的是，有兩種，一種是非辦公室 Cre，一種是 C&I 貸款。我們有一些功勞導致了這一點。這些確實是一次性的，我與首席信貸官傑森·索托(Jason Soto)交談時，他說，你嘗試尋找那裡的動態，這確實是更特殊的管理失誤。因此，會發生資金流入和資金流出，我們會積極應對。但我再說一次，我沒有看到任何導致這些信用背後存在一系列問題的東西。

Okay. Given what you see today on credit and for loan growth, how are you -- how should we be thinking about provisioning levels for the back half of the year?

好的。鑑於您今天看到的信貸和貸款增長情況，我們應該如何考慮下半年的撥備水平？

Yes. I mean, Glenn can talk from a technical CECL perspective. We -- I think we're pretty conservative. We've got a good -- we're a top decile among our peer group coverage ratio right now,CECL coverage. We're thoughtful about the uncertainties in the macro market. A lot of it is driven by the inputs of risk rating dynamics and the more you proactively deal with troubled credits, obviously, that helps you in terms of what you have to post going forward.

是的。我的意思是，Glenn 可以從技術 CECL 的角度進行討論。我們——我認為我們相當保守。我們現在的 CECL 覆蓋率在同行群體中名列前茅。我們對宏觀市場的不確定性深思熟慮。其中很大一部分是由風險評級動態的輸入驅動的，而且您越積極主動地處理有問題的信用，顯然，這對您未來必鬚髮布的內容有幫助。

My personal view is I'd like to keep a robust coverage ratio, but it's all going to be dependent upon how credit performs, what the risk migration is like and how proactive we are on being able to resolve remedy, get payoffs or sell criticized and classified assets, Mark. So I would say kind of it stayed of course, look at what we've been doing, think about movements in the portfolio and it's probably similar levels to what you've seen in the last few quarters.

我個人的觀點是，我希望保持穩健的覆蓋率，但這一切都取決於信貸表現、風險遷移情況以及我們在解決補救措施、獲得回報或出售受到批評的問題上的積極主動程度和分類資產，馬克。所以我想說，當然，看看我們一直在做什麼，考慮一下投資組合的變動，它可能與你在過去幾個季度看到的水平相似。

Okay. And then lastly, should we expect merger charges from Sterling to wrap up in the third quarter, post systems conversion? Will they be done and behind at that point?

好的。最後，我們是否應該期望 Sterling 的合併費用在系統轉換後的第三季度結束？到那時他們會完成並落後嗎？

Yes Mark, you expect it to wrap up in the fourth quarter. But you've seen it trending down. So yes.

是的，馬克，你預計它會在第四季度結束。但你已經看到它呈下降趨勢。所以是的。

Your next question comes from Manan Gosalia with Morgan Stanley.

您的下一個問題來自摩根士丹利的馬南·戈薩利亞。

I get this question a lot, and I wanted to see how you answer it. What do you make of the argument that if rates stay higher for even longer, the difference in peak deposit betas between banks should narrow and banks that have lower betas like yourselves, we'll see a larger increase in deposit rates than some of your peers that already have higher betas?

我經常被問到這個問題，我想看看你是如何回答的。如果利率保持較高水平的時間更長，銀行之間的峰值存款貝塔值差異應該縮小，而像你們這樣貝塔值較低的銀行，我們會看到存款利率的增幅比一些同行更大，您對此有何看法？已經有更高的貝塔值了？

I think it will depend on by bank. It depends on the composition. And for us, as you know, we have HSA, which basically has a through-the-cycle beta of 2% and so that's a differentiator for us. If you look at our other lines of businesses between the commercial and the consumer business, those both have different betas as well. So I think a lot of that our commercial betas, I think 34%, our consumer betas 22%. So I think a lot of that will be driven by the mixed shift and the funding profile from each of the institution.

我認為這取決於銀行。這取決於成分。對於我們來說，如您所知，我們有 HSA，它的整個週期貝塔值基本上為 2%，所以這對我們來說是一個差異化因素。如果你看看我們商業和消費者業務之間的其他業務線，它們也有不同的貝塔值。所以我認為很多我們的商業貝塔值，我認為是 34%，我們的消費者貝塔值是 22%。因此，我認為這在很大程度上將由每個機構的混合轉變和資金狀況推動。

Yes. Manan, my view would be similar. It's kind of an interesting question you asked because you could think about that as kind of everybody kind of a reversion to the mean. But I do think, as Glenn said, it really ultimately is about your deposit mix and your ability. You saw us drive growth in higher cost deposits in the quarter for a number of strategic reasons, we have expected growth in the second half of the year in our core commercial franchise in our consumer book in our business banking book in our government operating deposit book.

是的。馬南，我的觀點也類似。您問的這個問題很有趣，因為您可以將其視為每個人都在回歸均值。但我確實認為，正如格倫所說，這最終取決於你的存款組合和你的能力。您看到我們出於多種戰略原因在本季度推動了更高成本存款的增長，我們預計下半年我們的核心商業特許經營權將出現增長，我們的消費者賬戶，我們的商業銀行賬戶，我們的政府運營存款賬戶。

So those will be things that should help us mitigate some of the impact of overall higher deposit costs around. So I think you can't make the assumption that everybody ends up in the same place if we're in this situation for a long period of time.

因此，這些事情應該可以幫助我們減輕整體較高的存款成本的影響。所以我認為，如果我們長時間處於這種情況，你就不能假設每個人最終都會處於同一個地方。

Very helpful. And did you say 2% through-the-cycle deposit beta on HSA deposits?

很有幫助。您是否說過 HSA 存款的整個週期存款貝塔率為 2%？

Yes, I did. And so if you looked at our -- I think for the quarter, we said cycle-to-date beta was 34% of our deposits. But if you peel that back, HSA cycle-to-date has been 2%. Consumer has been 22%, commercial to 34% and the difference being the higher beta products that we had into the second quarter interLINK, broker CDs. So that's how you ladder up to that number. But there's differences within the portfolios, and there's differences in the product sets.

是的，我做到了。因此，如果你看看我們的——我想在本季度，我們說周期至今的貝塔值占我們存款的 34%。但如果你把這個因素剝離開來，HSA 週期迄今為止的比例為 2%。消費者佔 22%，商業佔 34%，差異在於我們在第二季度 interLINK 中使用了更高貝塔值的產品，經紀商 CD。這就是你達到這個數字的方法。但產品組合和產品組合之間存在差異。

And is there any environment in which competitive factors push up the beta on those HSA deposits?

是否存在競爭因素推高這些 HSA 存款貝塔值的環境？

It's interesting because the customers that are really searching for yield in that product become investors, and they move their balances into investment options. So when you think about that, when you think about our 3 million HSA account, 75% of those are spenders. So they have relatively small balances like $450 in the account. So it's not as meaningful for them. And the savers have a larger balance like $6,000 or $7,000. And as soon as they get a little more scale then they become investors. And so investors have a lower demand -- lower DDA savings balance and a higher investment balance. But those that are in that savings category and decide to move to investors. Still, generally, if you look at their balance, it's at [$4,500] to $5,000 are multiples of what the spenders are. And like I said, 75% of our customers are spenders to that.

這很有趣，因為真正尋求該產品收益的客戶成為投資者，他們將餘額轉移到投資選擇上。因此，當您想到這一點時，當您想到我們的 300 萬個 HSA 帳戶時，您會發現其中 75% 是消費者。因此他們的賬戶餘額相對較小，例如 450 美元。所以這對他們來說意義不大。儲戶的餘額較多，例如 6,000 美元或 7,000 美元。一旦他們的規模擴大一點，他們就會成為投資者。因此，投資者的需求較低——DDA 儲蓄餘額較低，投資餘額較高。但那些屬於儲蓄類別並決定轉向投資者的人。不過，一般來說，如果你看一下他們的餘額，就會發現它在 [4,500 美元] 到 5,000 美元之間，是消費者的數倍。正如我所說，我們 75% 的客戶都是這方面的消費者。

Your next question comes from Steven Alexopoulos with JPMorgan.

您的下一個問題來自摩根大通的史蒂文·阿萊克索普洛斯。

I wanted to start. So first, a follow-up on the comments around the positive trajectory for NII for the rest of this year. What are you guys assuming in terms of additional noninterest-bearing outflows in that assumption?

我想開始。首先，對有關今年剩餘時間 NII 積極軌蹟的評論進行跟進。在這個假設中，你們對額外的無息資本流出有何假設？

So I think on an absolute basis, we're in the quarter on noninterest-bearing 113, 114 and that will as a flow. I mean, like John said, we have some municipal funds that have come into additional transactional funds that come in. So I think we'll probably end the year within that range given the puts and takes to you.

因此，我認為從絕對角度來看，我們本季度的無息 113、114 是一個流動。我的意思是，就像約翰所說，我們有一些市政基金已進入額外的交易基金。因此，我認為考慮到您的看跌期權和看跌期權，我們可能會在這一範圍內結束今年。

Got it. Okay. So pretty flat from here. Okay. I'm curious on the deposit competition side, it seems like most banks were building liquidity this quarter and it's really played out, right? We're not seeing that as much for 3Q, so when you look at the competitive environment, is it easing a bit here in the third quarter?

知道了。好的。從這裡開始非常平坦。好的。我對存款競爭方面很好奇，似乎大多數銀行本季度都在建立流動性，而且確實已經結束了，對吧？我們在第三季度沒有看到那麼多，所以當你看看競爭環境時，第三季度競爭環境是否有所緩解？

Yes, I don't think the competition is easing. It may be because the Fed has paused, and it's been such a big increase. The people who are rate sensitive given -- and the banks wanting additional liquidity, that it was a perfect storm in 2Q. So I do think that the pressure on deposit pricing eases but I'm not sure, Steve. I don't -- I wouldn't characterize it as the competition for deposits easing. So I think that's kind of why you're seeing most of the folks in the industry take a position that the increase in deposit costs kind of moderate but continue because obviously, we all think that deposits are the most valuable thing. And obviously, we're relying and want to rely more on our relationships than just going out and chasing deposits for rate. But I think competition stays strong, but I think the pressure on pricing moderates.

是的，我認為競爭並沒有減弱。可能是因為美聯儲暫停了，而且加息幅度如此之大。對利率敏感的人以及希望獲得額外流動性的銀行認為，第二季度是一場完美風暴。所以我確實認為存款定價的壓力有所緩解，但我不確定，史蒂夫。我不認為——我不會將其描述為存款競爭的放鬆。因此，我認為這就是為什麼您會看到業內大多數人都認為存款成本的增長雖然溫和，但會持續下去，因為顯然，我們都認為存款是最有價值的東西。顯然，我們正在依賴並且希望更多地依賴我們的關係，而不僅僅是出去追逐存款以獲得利率。但我認為競爭依然激烈，但定價壓力有所緩和。

And then finally, on the regulatory front. So your period end assets are almost $75 billion, right? We're all waiting for the new regulations for banks above $100 billion. And I know we need to wait for the details. But John, what's your messaging internally at this point to the team? Are you looking at this saying, "Okay, we're close enough, whatever comes out, we're going to work to comply with it now." Do you feel like you have the time to comply with what comes out, like how are you viewing it at this stage?

最後，在監管方面。那麼您的期末資產接近 750 億美元，對吧？我們都在等待針對1000億美元以上銀行的新規定。我知道我們需要等待細節。但是約翰，此時您向團隊內部傳達的信息是什麼？你是否看到這句話：“好吧，我們已經足夠接近了，無論結果如何，我們現在都會努力遵守它。”你覺得你有時間遵守結果嗎？比如你現階段如何看待它？

It's great. That's a good question. I'll reiterate a bit of what I said before and maybe add to it. So I'm really happy with our risk infrastructure. Our regulatory relationships right now are remaining strong. It's always been a real focus of mine and of the team. As I mentioned earlier in response to another question, we've already complied with LCR. We obviously -- we stress test internally even though we don't have obligations to disclose externally. And so we feel like and with this merger that took us over $50 billion, we are on the path to height and standards already. So we've built the infrastructure, I think, to continue to comply and to continue to execute in whatever the regulatory framework is.

這很棒。這是個好問題。我會重申一下我之前說過的一些內容，也許還會補充一些內容。所以我對我們的風險基礎設施非常滿意。目前我們的監管關係依然牢固。這一直是我和團隊真正關注的焦點。正如我之前在回答另一個問題時提到的，我們已經遵守了 LCR。顯然，我們在內部進行壓力測試，儘管我們沒有義務對外披露。因此，我們覺得，通過這次耗資超過 500 億美元的合併，我們已經走上了通往高度和標準的道路。因此，我認為，我們已經建立了基礎設施，以繼續遵守並繼續執行任何監管框架。

So when people ask how much additional cost will it be and so on and so forth. I think I feel really good about where we are from a people, a process and a system perspective. The real hit is going to be if there is one, what are the actual capital and liquidity requirements as we move forward. I think your point is a good one as we move from $75 billion to $80 billion to $85 billion we're clearly going to have to comply and be ready for whatever is out there. We will likely when these new regulations are implemented and have an opportunity at a time to adopt. So we won't rush. We'll make sure we're compliant, but we'll get ourselves fully prepared.

因此，當人們詢問需要多少額外費用等等時。我認為，從人員、流程和系統的角度來看，我對我們的現狀感到非常滿意。真正的打擊將是，如果有的話，隨著我們前進，實際的資本和流動性要求是什麼。我認為你的觀點很好，隨著我們從 750 億美元轉向 800 億美元，再到 850 億美元，我們顯然必須遵守並為可能出現的情況做好準備。我們很可能會在這些新法規實施時有機會採用。所以我們不會著急。我們將確保我們合規，但我們會讓自己做好充分準備。

So the way I look at it is I don't feel like we're going to be blindsided and it's going to slow us down significantly. They'll be if there are additional capital and liquidity requirements, those will be what they'll be. But on a relative basis, they'll be for all of our peers and our competition and I feel good that we'll have time to make sure that we implement whatever is there. So the message to the team, as you said, is keep doing what you're doing, make sure that we're meeting all the heightened standards as an above $50 billion bank and obviously get ready for whatever is going forward with respect to our internal systems, our risk management processes, make sure we have the right people, and I feel really good about that.

所以我的看法是，我不覺得我們會措手不及，而且它會顯著減慢我們的速度。如果有額外的資本和流動性要求，它們就會如此。但相對而言，它們將適用於我們所有的同行和競爭對手，我感覺很好，我們將有時間確保我們實施現有的一切。因此，正如您所說，我們要向團隊傳達的信息是，繼續做您正在做的事情，確保我們滿足作為一家資產規模超過500 億美元的銀行的所有更高標準，並為我們未來的發展做好準備。內部系統、我們的風險管理流程，確保我們擁有合適的人員，我對此感覺非常好。

Your next question comes from Daniel Tamayo with Raymond James.

您的下一個問題來自丹尼爾·塔馬約和雷蒙德·詹姆斯。

Multiple questions have been asked and answered at this point. But it's just one more follow-up on the fee income side, and I apologize if I missed this, my call cutout for a second there. But just curious, what your expectations are? And obviously, the guidance came down. But in terms of a rebound long term, I mean, what does it take to get back to where you were? And then how does that impact the expense side as well?

此時已提出並回答了多個問題。但這只是費用收入方面的又一個後續行動，如果我錯過了這一點，我深表歉意，我的通話暫時中斷。但只是好奇，你的期望是什麼？顯然，指導意見已經下降。但就長期反彈而言，我的意思是，要回到原來的水平需要什麼？那麼這對費用方面有何影響呢？

Yes. Let me give you -- I'll give you the high level, Dan, and then Glenn can fill in any of the charts. We're a strong commercial bank with strong relationships, and we cross-sell lots of products. And so we really grew our noninterest income on the back of our commercial banking relationships. And so what you saw driving higher levels of noninterest income last year were things like swap fees, syndication fees, loan fees, equity tag, investment realizations from our Sponsor & Specialty Group. And a lot of that, given the market dynamics has kind of stopped obviously, with the higher interest rates, none of the industry is selling as much swap business.

是的。讓我給你——丹，我會給你高水平，然後格倫可以填寫任何圖表。我們是一家實力雄厚的商業銀行，擁有牢固的關係，並且交叉銷售許多產品。因此，在商業銀行關係的支持下，我們的非利息收入確實增長了。因此，你看到去年推動非利息收入水平提高的是掉期費、銀團費、貸款費、股權標籤、我們的讚助商和專業集團的投資變現等。其中很多，考慮到市場動態已經明顯停止，隨著利率上升，整個行業都沒有出售那麼多的掉期業務。

And then with respect to our business in particularly commercial real estate and Sponsor & Specialty, where we have more capital markets fees when the kind of ride stops for a bit in March, we've seen a slowdown. So I'm telling you that because I think those would be the dynamics that when we reach a more normalized environment, which I think we expect to be in the fourth quarter, first quarter of next year, where we've been a bit conservative in our forecast that you've seen in our guidance. We start to drive a lot of those ancillary treasury management fees, FX fees, swap fees, capital markets fees, equity tag investment realization. So that would be a driver immediately. But as a management team, you can imagine, we're also focused on making sure that we're -- we, over time can have a higher percentage of our revenue in fee-generating businesses as well. So that's a strategic emphasis for us.

然後，就我們的業務而言，特別是商業房地產和讚助商及專業業務，當這種情況在三月份停止時，我們會收取更多的資本市場費用，我們看到了放緩。所以我告訴你們，因為我認為這些將是當我們達到更加正常化的環境時的動態，我認為我們預計會在明年第四季度、第一季度出現，我們一直有點保守您在我們的指導中看到了我們的預測。我們開始推動大量輔助資金管理費、外匯費、掉期費、資本市場費、股權標籤投資變現。所以那將立即成為一名司機。但你可以想像，作為一個管理團隊，我們還致力於確保隨著時間的推移，我們在收費業務中也能獲得更高比例的收入。所以這是我們的戰略重點。

Terrific. And that's all I had. Thanks for the color.

了不起。這就是我所擁有的一切。謝謝你的顏色。

Your next question comes from Bernard Von Gizycki with Deutsche Bank.

您的下一個問題來自德意志銀行的 Bernard Von Gizycki。

So my first question -- you discussed about $120 million in cost savings post the Sterling conversion, which is expected by this weekend as noted. You also mentioned that several back-office systems have already been consolidated. And I think the acceleration of your tech plans will lead to further synergies. Can you just remind us, do some of these cost savings come through this year? Or is it an entire amount for full year '24? And is the $120 million still the cost-savings estimate?

所以我的第一個問題——您討論了英鎊兌換後大約 1.2 億美元的成本節省，正如前面提到的，預計在本週末實現。您還提到，幾個後台系統已經得到整合。我認為你們技術計劃的加速將帶來進一步的協同效應。您能否提醒我們，今年是否能節省一些成本？還是 24 年全年的全部金額？ 1.2 億美元仍然是成本節約估算嗎？

Yes. No, it's a great question. So let me give you a little perspective. So when we announced the transaction, we announced about a 10% synergy and cost saves of our combined run rate. That was a combination of FTE reduction about having our office and corporate real estate space, getting a bit of duplicative vendor contracts.

是的。不，這是一個很好的問題。那麼讓我給你一點看法。因此，當我們宣布這項交易時，我們宣布我們的綜合運行率將實現約 10% 的協同效應和成本節省。這是減少 FTE 的綜合因素，包括擁有辦公室和公司房地產空間，以及獲得一些重複的供應商合同。

And then obviously, as you mentioned, completion of the conversion, back office efficiencies, synergies, a combination of the call centers some branch consolidation, all of that sort of post conversion. So obviously, the conversion being pushed out 15 to 18 months from close, stuff, some of the realization of that.

顯然，正如您所提到的，轉換的完成、後台效率、協同效應、呼叫中心的組合、一些分支機構的整合，所有這些轉換後的工作。很明顯，轉換被推遲了 15 到 18 個月，距離完成，一些實現這一點。

In the interim, we've also talked about the fact that when we made our announcement on cost synergies, we didn't have a 6%, 7% wage inflation rate we didn't contemplate at the announcement, the acquisition of Bend in HSA, the acquisition of interLINK, about $25 million higher in FDIC costs and other general inflationary pressures. So I think the way to look at it is we do have opportunities that probably will be realized in '24 because we're doing the conversion now and then we're consolidating call centers, and we're looking at back office synergies once we've retired some of the subledgers. So the remaining cost savings that we're talking about there probably won't impact '23 materially.

在此期間，我們還談到了這樣一個事實，即當我們宣布成本協同效應時，我們在宣佈時沒有考慮到 6%、7% 的工資通脹率，即收購 Bend HSA 收購interLINK 後，FDIC 成本和其他一般通脹壓力增加了約2500 萬美元。所以我認為看待這個問題的方法是，我們確實有可能在 24 年實現的機會，因為我們現在正在進行轉換，然後我們正在整合呼叫中心，一旦我們完成，我們就會考慮後台協同效應。已經廢棄了一些分類賬。因此，我們正在討論的剩餘成本節約可能不會對 23 年產生重大影響。

But the reality is you saw us keep our core noninterest expense flat period-over-period, which is sort of bucking the trend in the industry. And the general synergies of -- in these 2 banks together have enabled us to keep our efficiency ratio in the low 40% during a period of time, obviously, when expenses are getting higher and higher. So the way we look at it is we benefited from realizing a good amount of the $120 million target about 75%. Some of that has been offset by additional investments and acquisitions, we do have opportunities in the back half of '23 to get more efficient, which will benefit our run rate in '24 but as we've said all along, this is really a growth story, and we're going to continue to invest in our differentiated businesses.

但現實情況是，我們的核心非利息支出保持持平，這在某種程度上與行業趨勢背道而馳。這兩家銀行的整體協同效應使我們能夠在一段時間內將效率保持在 40% 的低位，顯然，在費用越來越高的情況下。因此，我們看待這一問題的方式是，我們從實現 1.2 億美元目標的 75% 左右受益。其中一些已被額外的投資和收購所抵消，我們確實有機會在 23 年下半年提高效率，這將有利於我們在 24 年的運行率，但正如我們一直以來所說的，這確實是一個增長故事，我們將繼續投資於我們的差異化業務。

And if you look at what Jack and I said, geez, almost 3 years ago when we announced the transaction, that 2 years into the transaction, we would be posting a high-teens ROATC and ROA above 1.4% and an efficiency ratio in the 40% to 45% range. We posted that at year-end '22. We posted that this morning, and we expect to post that again on 12/31 for the full year. So we feel like we're delivering the financial results and certainly being one of the most efficient banks in our peer group, if not the most efficient is helping us do that.

如果你看看傑克和我所說的話，天哪，大約 3 年前我們宣布交易時，交易進行 2 年後，我們將公佈高於 1.4% 的 ROATC 和 ROA，以及40% 到 45% 範圍。我們在 22 年底發布了這一消息。我們今天早上發布了該信息，並預計在 12 月 31 日再次發布全年信息。因此，我們覺得我們正在交付財務成果，並且肯定是我們同行中最高效的銀行之一，即使不是最高效的銀行也在幫助我們做到這一點。

Great. Maybe just as one question on deposits. The interLINK balances reached $4.3 billion, which is over 2 quarters. I believe that's versus your target of about $5 billion. So I'm just kind of curious, is that still your target? Can you pull further into that? I think on the call earlier, you mentioned seeing some new opportunities for growth in transactional accounts. Maybe you could just give a little color on where you see the deposit like where growth will come maybe in the second half of the year?

偉大的。也許只是關於存款的一個問題。 interLINK 餘額達到 43 億美元，超過兩個季度。我相信這與您大約 50 億美元的目標是不相符的。所以我只是有點好奇，這仍然是你的目標嗎？你能更進一步嗎？我想在之前的電話會議上，您提到看到了交易賬戶增長的一些新機會。也許您可以對您看到的存款的位置進行一些說明，例如下半年可能會出現增長的地方？

Yes, it's a good question. So interLINK was 2.8 -- end of period, interLINK was just under $2.9 billion in the first quarter. Obviously, we're at 4.2. I think the growth in that will moderate over the next couple of quarters. So I'm totally -- probably in the range of $100 to $150 million, somewhere around there, but certainly not the increase that you saw in the second quarter. So you'll see growth sort of moderate from that point on.

是的，這是一個好問題。因此，interLINK 的值為 2.8——期末，interLINK 第一季度的銷售額略低於 29 億美元。顯然，我們現在處於 4.2 水平。我認為未來幾個季度的增長將會放緩。所以我完全——可能在 100 到 1.5 億美元之間，大約在這個範圍內，但肯定不是你在第二季度看到的增長。所以從那時起你會看到增長有點溫和。

We had a target of $5 billion to $6 billion. So I think it -- by quarter -- by the fourth quarter, we'll probably be at or slightly under that start.

我們的目標是 50 億至 60 億美元。所以我認為，按季度計算，到第四季度，我們可能會達到或略低於這個起點。

Your next question comes from Jared Shaw with Wells Fargo Securities.

您的下一個問題來自富國銀行證券公司的 Jared Shaw。

I think most of the questions were answered. But as you look at the loan yields, you talked about better spreads. Do you think that, that can still move higher as we go through the year, if the Fed moves as expected?

我想大部分問題都得到了解答。但當你查看貸款收益率時，你談到了更好的利差。您認為，如果美聯儲按預期採取行動，這一數字在今年還會走高嗎？

Yes. We do. Obviously, we'll get -- if we get another rate increase, the reference rates will slide up a bit. But from a credit spread perspective, I think my base case would be that we do. The dynamics are interesting. People are choosing to play in different sectors and different asset classes. And loan demand is sort of unpredictable. It's slower in a bunch of areas. And there's some decent demand that we expect in the back half of the year.

是的。我們的確是。顯然，如果我們再次加息，參考利率將會略有上升。但從信用利差的角度來看，我認為我的基本情況是我們這樣做。動態很有趣。人們選擇參與不同的行業和不同的資產類別。貸款需求是不可預測的。在很多領域速度都比較慢。我們預計今年下半年會有一些不錯的需求。

So I think us and the rest of the industry will continue to be thoughtful about deploying capital. and making sure that we're getting paid for risk. So I expect that credit spreads and structure from a bank's perspective, from a lender's perspective, will continue to modestly improve as we go into the second half Jared.

因此，我認為我們和行業其他公司將繼續深思熟慮地部署資本。並確保我們因風險而獲得報酬。因此，我預計，隨著下半年的到來，從銀行、貸方的角度來看，信貸利差和結構將繼續小幅改善，賈里德。

Yes. The only thing I would add to that, Jared, is 60% of our book is floating or periodic. And so I think in the quarter, we ended like 606 yield on the book. And so as you look out, again, we're assuming 25 basis points of the Fed next week. So you're probably adding a couple of basis points in the third quarter, a couple in the fourth quarter on the long year for the total loan, Cre.

是的。 Jared，我唯一要補充的是，我們書中 60% 的內容是浮動的或週期性的。因此，我認為本季度的賬面收益率為 606。因此，正如您所見，我們再次假設美聯儲下週加息 25 個基點。因此，您可能會在第三季度增加幾個基點，在第四季度增加幾個基點，以計算長期貸款總額 Cre。

There are no further questions at this time. I will now turn the call back to John Ciulla.

目前沒有其他問題。我現在將把電話轉回約翰·丘拉。

Thank you very much for joining us today. We appreciate your continued coverage and interest in the company. Thank you.

非常感謝您今天加入我們。我們感謝您對公司的持續關注和興趣。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。