S&T Bancorp, Inc. (NASDAQ:STBA) Q2 2019 Earnings Conference Call July 18, 2019 1:00 PM ET
Mark Kochvar – Chief Financial Officer
Todd Brice – Chief Executive Officer
Dave Antolik – President and Chief Lending Officer
Pat Haberfield – Senior Executive Vice President and Chief Credit Officer
- Mark Kochvar - 首席财务官
- Todd Brice - 首席执行官
- Dave Antolik - 总裁兼首席贷款官
- Pat Haberfield - 高级执行副总裁兼首席信贷官
Matthew Breese – Piper Jaffray
Russell Gunther – D.A. Davidson
Collyn Gilbert – KBW
Daniel Cardenas – Raymond James
- Matthew Breese - Piper Jaffray
- Russell Gunther - D.A.戴维森
- Collyn Gilbert - KBW
- 丹尼尔卡德纳斯 - 雷蒙德詹姆斯
Greetings, and welcome to the S&T Bancorp, Inc. Second Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mr. Mark Kochvar, Chief Financial Officer. Thank you, you may begin.
问候，欢迎来到S＆T Bancorp，Inc。2019年第二季度收益电话会议。 [操作员说明]提醒一下，此会议正在录制中。
现在我很高兴地介绍您的主持人，首席财务官Mark Kochvar先生。 谢谢，你可以开始吧。
Thank you. Good afternoon, everyone and thank you for participating in today’s conference call.
Before beginning the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors, which is on the screen in front of you. This statement provides cautionary language required by the Securities and Exchange Commission for forward-looking statements that may be included in this presentation.
A copy of the second quarter earnings release can be obtained by clicking on the press release link on your screen or by visiting our investor relations website at www.stbancorp.com.
I would now like to introduce Todd Brice, S&T’s CEO, who will provide an overview of S&T’s results.
Well, thank you, Mark, and good afternoon everybody. We’re pleased to announce net income of $0.76 per share or $26.1 million. This represents a 25% increase in earnings per share over last year’s second quarter results of $0.61 per share or $21.4 million, and a 15% increase in EPS over first-quarter results of $0.66 per share, or $22.9 million.
Operating metrics for the quarter were very strong with a ROA of 1.44%, return on equity of 11%, and return on tangible of 15.89%. In addition to our overall performance, we’re extremely excited about our recent announcement regarding the acquisition of DNB Financial.
As we discussed on our merger announcement call, DNB is based in the rapidly expanding Chester, Philadelphia and Delaware County markets, which will provide significant growth opportunities as we move forward. We’ve made all the necessary regulatory filings and we anticipate closing in the fourth quarter of 2019.
For the quarter, balance sheet growth is the big story as portfolio loans increased $98 million or 6.6% annualized. Our deposits were up $23 million, however, we did elect to let $50 million of brokered CDs runoff. Netting brokered out customer deposits increased by $74 million or 5.6% annualized. And they were mostly in the money market in non-interest bearing DDA accounts.
This is a result of a targeted geography promotions and increased deposits with existing customers compared to one year ago, portfolio loans were up $247 million or 4.3% and deposits were up $463 million or 8.6%. We do continue to see nice activity in both our lending and deposit gathering efforts across all of our five markets.
Net interest margin was 3.68% for the quarter, which was down three basis points from Q1, but approximately four basis points higher than what we were anticipating. We did experience a heavy quarter in loan payoffs, and which positively impacted the margin through the acceleration of some of the origination fees and pre-payment fees.
Our asset quality metrics showed nice improvements as well. We recorded a provision expense of $2.2 million, which compares favorably to $9.3 million in the second quarter last year and $5.6 million in the first quarter of this year. Non-performing assets decreased by $4.3 million or 8.4%, to $46.5 million and represent 0.63% of total assets. And finally, total delinquency declined by nine basis points and now stands at 0.92%.
Expenses were slightly higher than expected, but were impacted by some merger related costs as well as several other unusual items, as a result, our efficiency ratio did increase to 54%. Then Mark, going to explain some of the variances in a few minutes, but we will work diligently to drive that number down into the low 50% range.
We are also seeing nice results from some of our recent investments to grow our various lines of business. Our small business lending group and our mortgage division had record quarters. Our new retail branches in Central and Northeast Ohio experienced a nice loan and deposit activity in both commercial and retail areas. And the bankers that we’ve added to our commercial banking, business banking and mortgage teams across our footprint are building their pipelines. And we continue to see robust economic activity across our footprint and like our staff from a talent perspective, to continue to grow the business.
And finally, our Board of Directors declared a quarterly dividend of $0.27 per share payable on August, 15. This represents an 8% increase over the dividend that was paid in the same period last year.
So thank you for your continued support of S&T Bancorp. Now, I’d like to turn the program over to our President and Chief Lending Officer, Dave Antolik.
感谢您对S＆T Bancorp的持续支持。现在，我想将该计划转交给我们的总裁兼首席贷款官Dave Antolik。
Thank you, Todd and good afternoon, everyone. We’re pleased to report loan growth of 6.6% annualized in the second quarter, that’s in-line with our expectations and guidance. For the quarter, we experienced growth in all loan categories. In the commercial portfolio our investments in personnel and our strategy to expand our C&I capabilities into all of our markets under the leadership of our Managing Director of C&I banking, yielded growth of $47 million in Q2.
Revolving utilization rates declined from 42% to 41% quarter-over-quarter. Offsetting this decline was an increase in total revolving commitments of $19 million and an increase in the total number of commitments.
With regard to our CRE activities, balances grew modestly by $5 million and as Todd mentioned, we continue to experience an elevated level of property sales and competitive pressure causing higher levels of payoffs. We expect this pressure to continue into future quarters.
Our Commercial Construction balances grew by nearly $22 million and our unfunded construction commitments grew by $27 million quarter-over-quarter. Unlike the first quarter balances were not heavily impacted by project completions and subsequent transfers from construction to the permanent category. We continue to see very positive results from our Business Banking group, which focuses on relationships up to $1.5 million. In this space, we’ve seen year-over-year originations increased by over $20 million and year-to-date net loan growth for this business line is approximately 8%.
With regard to consumer loans, we saw growth of $24 million, driven primarily by residential mortgages. Year-to-date, we have added four mortgage loan originators and have closed nearly $100 million, up 45% over the first half of last year. Based on our current pipeline and the rate environment, we expect this level of production to continue through the balance of this year.
Under the leadership of our market presidents, our market-based growth platform has become the primary driver of growth for our organization. For the quarter, we saw particularly strong loan and deposit growth in both Central and Western Pennsylvania. Based on our current commercial pipeline, which is over 40% larger than at this point last year, and the previously mentioned retail mortgage pipeline, we continue to remain comfortable with our mid single-digit full year loan growth guidance.
And now Mark will provide you with some additional details.
Thanks, Dave. Net interest income improved by about $0.5 million due to higher average loan balances of $44.5 million and one additional day in the quarter. The second quarter net interest margin rate was supported again by higher than typical pre-payment activity, similar to what we experienced in the first quarter, which added about four basis points.
We therefore continue to expect net interest margin contraction from lower pre-paid fees along with additional pressure in the event that Fed lowers rates at the end of the month. The combined impact of more normal prepaid and a 25 basis point cut would likely put net interest margin rate in the lower 3.60% range in Q3.
The $1.5 million increase in non-interest income is driven by higher commercial-related fees of almost $800,000. We had a very busy month with swaps which shows up in the other category. We also saw seasonally better activity in debit card and merchant fees, combined up over $500,000 compared to the first quarter.
The $1.4 million increase in non-interest expense was in part due to $618,000 or about $0.01, $0.015 per share of merger-related expenses. The Other category which is up, includes higher OREO losses, along with higher collection and legal costs related to some ongoing loan workouts.
Going forward in 2019, we expect fee income to be approximately $12 million per quarter and expenses to be approximately $39 million per quarter, not including merger-related expenses. Merger expenses will be heaviest in Q4 when the transaction is expected to close and the first quarter of 2020, when the system’s conversion takes place. Our tax rate in the second quarter was in-line with our full-year expectations of an effective rate of around 16.5%. Our risk-based capital ratios were essentially unchanged in the second quarter due to improved loan growth.
Thanks very much. At this time, I’d like to turn back over to the operator to provide instructions for asking questions.
Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Matthew Breese with Piper Jaffray. Please proceed with your question.
谢谢。 我们现在将进行问答环节。 [操作员说明]我们的第一个问题来自Matthew Breese与Piper Jaffray的合作。 请继续你的问题。
Hey, just sticking with the NIM, maybe just wanted some color on – I know we’re weeks – potentially weeks away from the Fed cut, but just some color on the market and how things are progressing in terms of your ability to cut deposit costs. It was encouraging to hear that you relieved yourselves some brokered deposits. Is that opportunity still there?
嘿，只是坚持使用NIM，也许只是想要一些颜色 - 我知道我们已经有几个星期了 - 距离美联储减产还有几个星期，但只是市场上的一些颜色以及你在削减存款能力方面的进展情况成本。 听到你为自己解除了一些代理存款，这是令人鼓舞的。 这个机会还存在吗？
The brokers or just the cutting of the rates?
It was two questions in one there really, just one color on the deposit market and competition. And then two, does that opportunity to continue to wind-down some of the higher cost deposits, is that still there, the brokerage stuff?
I think we still have – we realize we have some decent amount of floating-rate assets, and so we try to match that up, at least in part with some floating-rate items on the liability side. We have – our lease money market account is tied to the Fed funds rate. So that will go down automatically when – if the Fed moves. And then we also have – most of our brokered deposits are tied to LIBOR.
So those will reduce in rate as well. And then almost all of our wholesale borrowings are also either very short or LIBOR-based. So we do have a decent amount of costing liabilities that war price. I mean there still is a gap. And so we’ll work hard on some of the exception pricing items that we’ve done on the deposit side to review those and make some cuts. And then we’ll be looking at other things like growth in the fee and expense areas to try to make up the rest of the difference.
我认为我们仍然有 - 我们意识到我们拥有一定数量的浮动利率资产，所以我们试图将其与之相匹配，至少部分是与负债方面的一些浮动利率项目相匹配。 我们有 - 我们的租赁货币市场账户与联邦基金利率挂钩。 如果美联储采取行动，这将自动下降。 然后我们也有 - 我们的大部分经纪存款与LIBOR挂钩。
所以这些也会降低速度。 然后，我们几乎所有的批发借款都是非常短期或基于伦敦银行同业拆借利率。 所以我们确实有相当数量的成本负债，战争价格。 我的意思是还有差距。 因此，我们将努力研究我们在存款方面所做的一些例外定价项目，以审查这些项目并进行一些削减。 然后我们将考虑其他事项，如费用和费用领域的增长，以试图弥补其余的差异。
Right. Understood. Now, were you saying that the money market bucket in general is closely tied to the fed funds? Or are you saying that you have a specific amount tied to fed funds or indexed and if it’s to the latter?
对。了解。 现在，你是说一般的货币市场桶与联邦基金密切相关？ 或者你是说你有一个特定的数额与联邦基金或索引相关联，如果是后者？
I’m sorry, about half the money market is tied to fed funds.
Got it. Okay. And then just thinking about going forward, if we are in an environment where the fed is more apt to cut beyond just the first one. Any color on impact to NIM per fed cut? Is that something you could provide?
得到它了。 好的。 然后只考虑前进，如果我们处于一个环境，美联储更容易削减超越第一个。 每次进给切割对NIM的影响是否有任何颜色？ 那是你能提供的吗？
Roughly – I mean, on this first cut, we’re looking at about 3 or 4 basis points. So I’d expect it about – probably about the same amount for each one if they kept on going.
粗略 - 我的意思是，在第一次切割时，我们正在考虑大约3或4个基点。 所以我期待它 - 如果他们继续前进，可能每个人的数量相同。
Okay. And then it sounds like a more – it was definitely more positive quarter on the loan growth front. Just curious, what are you seeing out there in terms of competition, spreads, duration, structure? Are things any better or worse? And just thinking about beyond 2019 with 2020, how the landscape looks?
好的。 然后它听起来更多 - 它在贷款增长方面肯定是更积极的季度。 只是好奇，你在竞争，点差，持续时间，结构方面看到了什么？ 事情变得更好还是更糟？ 只是考虑到2019年以后到2020年，景观如何？
Yes. Matt, this is Dave Antolik. We continue to see pressure, particularly in the CRE spaces, as I mentioned, pay off pressure from both property sales and competitive offers, particularly on pricing. So spreads from the competition have decreased. We continue to compete with the 30-year amortizations. And we’re starting to see some longer IO periods on CRE products.
I don’t anticipate that any relief in that space, so that’s why we’re looking at diversified growth, and you see good diversified growth this quarter with the residential mortgage and we’re continuing down the path to grow our C&I capabilities and construction lending as well.
是。 马特，这是戴夫安托利克。 正如我所提到的，我们继续看到压力，特别是在CRE空间，从房地产销售和竞争性报价中获得压力，特别是在定价方面。 因此，竞争对手的利差减少了。 我们继续与30年的摊销竞争。 我们开始在CRE产品上看到更长的IO期。
With the yield curve, we’re seeing more requests for maybe longer term fixed rates because I think quite frankly, they’re cheaper than some of the floating rate options that we can do, but – that’s why the swap numbers were up significantly this quarter because we’ve been able to roll them into a swap products. We’re not taking that rate risk on the balance sheet.
随着收益率曲线，我们看到更多的可能需要更长期的固定利率，因为我坦率地说，它们比我们可以做的一些浮动利率期权便宜，但是 - 这就是为什么交换数量显着上升的原因 因为我们已经能够将它们变成交换产品。 我们没有在资产负债表上承担这一利率风险。
Right, that makes sense. Okay. And then, Todd, just following up on one of your comments. The goal of getting to that low kind of 50% efficiency range. Over what time frame do you set that target?
对，这是有道理的。 好的。 然后，托德，跟进你的一条评论。 达到50％效率范围的低目标。 您在什么时间范围内设定了目标？
Well, we look at it continually, Matt. Now, if you get some pressure with rates down, that will impact the ability to kind of cut that. But like I said, there were some, what we called unusual items and one times. So that probably might have bumped it up a 1% or 1.5%, but – and we look at that every day on where can we be more efficient and how can we control expenses.
While at the same time, making investments and grow the business. Like I said, we opened up some branches in Q1. We added some people, but we’re really starting to see the results from making those investments in pipelines and overall activity as well.
好吧，我们不断地看着它，马特。 现在，如果你在降低利率的压力下，那将会影响削减利率的能力。 但就像我说的，有一些，我们称之为不寻常的物品和一次。 所以这可能会使它增加1％或1.5％，但是 - 我们每天都在关注哪些方面可以提高效率以及如何控制开支。
同时，进行投资并发展业务。 就像我说的那样，我们在Q1开了一些分店。 我们增加了一些人，但我们真的开始看到管道和整体活动的投资结果。
Yes. We should see some improvement once the DNB is integrated. There’s some improvements in efficiency ratio, I think we’ll see from that as well.
是。 一旦DNB集成，我们应该看到一些改进。 效率比有一些改进，我想我们也会从中看到。
Okay. All right. I’ll leave it there. I appreciate taking my questions. Thanks, guys.
好的。 行。 我会留在那里。 我很感激我的问题。 多谢你们。
Thank you. Our next question comes from the line of Russell Gunther with D.A. Davidson. Please proceed with your question.
谢谢。 我们的下一个问题来自Russell Gunther和D.A.戴维森。 请继续你的问题。
Hey, good afternoon guys.
I appreciate your thoughts around the margin and fed cut scenario. Just curious what you guys are assuming internally for fed actions and how you’re positioning the balance sheet as a result?
I mean, we don’t have a formal review, so we’ll take a – we’ll do modeling with various assumptions. I mean, just from the press, the consensus certainly seems like at least one, maybe two. So we’re planning ahead to at least be prepared for those events, but haven’t modeled anything beyond that – beyond two at this point.
我的意思是，我们没有正式的审查，所以我们将采取 - 我们将做各种假设的建模。 我的意思是，从新闻界来看，共识肯定似乎至少有一个，也许是两个。 因此，我们正在计划至少为这些事件做好准备，但除此之外还没有建模 - 超过两点。
Okay, great. Thanks for that. And then just switching gears to the loan growth. I heard you guys say Central and Western PA, particularly strong this quarter. Maybe just any color you could share on what growth – what drove the strength this quarter and then expectations going forward? I understand you recommitted to that kind of mid single-digit guide, but where that growth would be coming from?
好，太棒了。 感谢那。 然后只是转向贷款增长。 我听说有人说中西部地区，本季度特别强劲。 也许你可以分享任何增长的颜色 - 是什么推动了本季度的实力以及未来的预期？ 我理解你再次提到那种中等个位数指南，但这种增长会来自哪里？
Some of it was staffing, so making sure we have the right folks in the right markets, where we see opportunity. Some of it was sharpening our pencil on some pricing, and some deals that we really like, particularly in the legacy Western Pennsylvania market. And most consistently, the business banking segment, that I mentioned, that has been our most consistent provider of asset growth, and the numbers aren’t as large as the traditional commercial banking area. But if we can get outsized growth of 8%, 9% in that book of business, that’s helped to drive a lot of growth for us as well.
其中一些是人员配置，因此确保我们在合适的市场中拥有合适的人才，我们在这里看到机会。 其中一些是在某些定价上削尖我们的铅笔，以及我们真正喜欢的一些交易，特别是在遗留的西宾夕法尼亚市场。 最一致的是，我提到的商业银行业务部门是我们最稳定的资产增长提供商，而且这些数字并不像传统的商业银行业务那么大。 但是，如果我们能够在该业务书中获得8％，9％的超大增长，那么这也有助于为我们带来大量增长。
And like you said, the pipeline is up, what was update?
The commercial pipeline was up about 40% over last year at this time, and that’s spread throughout the five markets. So making sure that we had the capabilities in all five markets, rolling our C&I platform, recruiting to support that growth is a big part of what’s driven our success.
That’s very helpful. Thank you, guys. And then just last one for me. Anything you could update us on as to where you stand in the CECL implementation process and any early indications of that?
这非常有帮助。 感谢你们。 然后只为我最后一个。 您可以向我们介绍一下您在CECL实施过程中所处的位置以及任何早期迹象吗？
Hi, this is Mark, and we continue to work with our – the vendor that we had used prior to CECL for our ALLL activity, and we’ve been working with them to – work to do different changes to our pooling and also looking at different options to calculate the historical loss. And we’re looking at that data right now and are getting close to trying to make a selection of which model makes the most sense for us. We don’t have any guidance on the impact of that yet, but don’t anticipate any problems internally with the implementation of CECL.
嗨，这是Mark，我们继续与我们合作 - 我们在CECL之前用于ALLL活动的供应商，我们一直在与他们合作 - 努力对我们的合并进行不同的改变，同时关注 计算历史损失的不同选择。 我们现在正在查看这些数据，并且正在努力选择哪种模型对我们最有意义。 我们尚未对此产生影响提供任何指导，但预计CECL的实施不会在内部出现任何问题。
Got it. Okay, great. That’s all I have. Thank you, guys.
得到它了。 好，太棒了。 这就是我的全部。 感谢你们。
Thank you. [Operator Instructions] Our next question comes from the line of Collyn Gilbert with KBW. Please proceed with your question.
谢谢。 [操作员说明]我们的下一个问题来自Collyn Gilbert与KBW的合作。 请继续你的问题。
Thanks. Good afternoon, guys.
Hi, Collyn. Hello.
I just wanted to start on the fee side. So I know you had indicated, Mark, where your – the outlook for quarterly fees going forward, but just the – sort of the composition of that and how you sort of see mortgage banking trending. And then I know obviously the debit and credit card fees were up big this quarter. Anything that you guys are doing strategically different or just trying to dig into some of the trends within the fee lines a little bit more?
我只是想从费用方面入手。 所以我知道你已经表明，马克，你在哪里 - 季度费用的前景，但只是 - 那种组合以及你如何看待抵押贷款银行业的趋势。 然后我知道本季度借记卡和信用卡费用明显增加。 你们在战略上有什么不同，或者只是试图深入了解费用范围内的一些趋势？
Quite a biggest change in the composition are the other swap fees that we alluded to, I think those have really been a lot higher than usual. There’s a little bit of a know rate play in there. So those may or may not last or maybe not as repeatable as some of the other fees. We have seen continued good activity so far this quarter. So that looks positive. But there is some risk if the Fed moves and we get slope back into the curve, that some of the swap fees might reduce a little bit or come back to a more normal level. Mortgage, on the mortgage banking side. Dave?
我们提到的其他掉期费用相当大的组成变化，我认为这些费用确实远高于平时。 那里有一点知情率。 因此，这些可能会或可能不会像其他一些费用那样持续或可能不那么重复。 我们已经看到本季度到目前为止持续的良好活动。 所以这看起来很积极。 但是，如果美联储采取行动，我们会有一些风险，我们会重新回到曲线，一些掉期费可能会略微下降或回到更正常的水平。 抵押贷款，在抵押贷款银行方面。戴夫？
Yes. So on the mortgage banking side, we’ve been portfolio – portfolio I think about 60% of the activity. Yes, it’s really a matter of know what point do we decide to retain and what point we decide to sell. So you saw in the quarter we had pretty nice balance sheet growth in that segment. And of course, that comes to the detriment of the mortgage banking fees.
是。 所以在抵押贷款银行方面，我们一直是投资组合 - 我认为大约60％的活动。 是的，这真的是知道我们决定保留什么点以及我们决定出售什么点。 因此，您在本季度看到我们在该细分市场中的资产负债表增长非常好。 当然，这会损害抵押贷款银行费用。
And on the debit, too. I think it’s a combination of just increased realization from existing clients. And we’re also seeing some nice household growth in our retail book. So, just more and more people are swiping the plastic than what we had a year ago.
在借记卡上也是如此。 我认为这只是现有客户增加实现的结合。 而且我们的零售业也看到了一些不错的家庭增长。 因此，越来越多的人正在刷塑料而不是一年前。
Okay, that’s helpful. And then on the buybacks, you guys didn’t buyback any shares this quarter, did you?
Very small now, maybe. I think very at the very beginning in the quarter, we picked up around 72,000 shares.
Okay. And do we – should we assume that buyback activity is going to be limited now in the wake of DNB?
好的。 而且我们 - 我们是否应该假设现在在DNB之后回购活动将受到限制？
We’ll probably be more selective, given that we do have the acquisition out there. We still have about $23 million or so of room in the current authorization. But it’s something we’ll kind of evaluate as we go, but it might be a little lower than we saw in Q1.
鉴于我们确实有收购，我们可能会更具选择性。 在目前的授权中，我们仍有大约2300万美元的房间。 但是，这是我们将要评估的东西，但它可能比我们在第一季度看到的要低一些。
There are some constraints on what we can – we do as well.
我们可以做些什么限制 - 我们也这样做。
Right. There’s some – with the S4s and the timing of all that, there’s a lot of blackout periods.
对。 有一些 - 对于S4和所有这些的时间，有很多停电期。
Yes, got it. Okay. And then just finally, can you offer us any updates on DNB? I mean, how things are going so far? Any changes to how you know the construct of their balance sheet or growth trends or anything like that, since you guys announced it?
是的，明白了。 好的。 最后，您能否向我们提供DNB的最新消息？ 我的意思是，到目前为止情况如何？ 自从你们宣布以来，你对资产负债表或增长趋势的构成或类似情况的了解有何变化？
Yes, no. I mean, we’re really, again, really, really positive. And, we’re in, we made the regulatory filings. We’ve had meetings with employees. And all the feedback so far is very good. The more we get in, and working with them, the more apparent the cultures really align. We think that will bode well for – when we get into the transition and integration period. But both teams are working very diligently, and very well with each other right now. So, we’re starting to begin the mapping process on the IP and everything. And you know we’re all good things so far.
是的，没有。 我的意思是，我们真的非常非常非常积极。 而且，我们在，我们制定了监管文件。 我们曾与员工会面。 到目前为止，所有反馈都非常好。 我们越多，并与他们合作，文化真正对齐就越明显。 当我们进入过渡和整合期时，我们认为这将是个好兆头。 但是这两支球队都非常努力地工作，现在彼此非常好。 所以，我们开始在IP和一切上开始映射过程。 而且你知道到目前为止我们都是好事。
Okay. Good. I think that was all I had. Thanks, guys.
好的。 好。 我想这就是我的全部。 多谢你们。
Our next question comes from the line of Daniel Cardenas with Raymond James. Please proceed with your question.
我们的下一个问题来自Daniel Cardenas与Raymond James的合作。 请继续你的问题。
Good afternoon, guys.
So in your prepared comments, I think you guys mentioned that your line utilizations were down 41% versus 42% last quarter. Is that just kind of seasonal? Is that something that we see every quarter or is there something behind that, that maybe you can point to and explain why we saw a modest decrease linked-quarter?
所以在你准备好的评论中，我想你们提到你的线路利用率下降了41％，而上一季度为42％。 那只是季节性的吗？ 这是我们每个季度看到的东西还是有什么背后的东西，也许你可以指出并解释为什么我们看到一个适度减少的关联季度？
Yes, I think that’s just seasonality. We’ve tracked this for many years and it’s surprisingly consistent, it runs between 41% and 43%. If we get outside of that range, then we might start looking a little more heavily. We did see some reduction in floor plan balances and floor plan utilization this quarter. So that drove some of that number.
是的，我认为这只是季节性问题。 我们已经追踪了很多年，它的结果令人惊讶地一致，它在41％到43％之间。 如果我们超出这个范围，那么我们可能会开始更加重视。 我们确实看到本季度平面图余额和平面图利用率有所下降。 所以这推动了一些这个数字。
Okay, so that we shouldn’t read into it that perhaps borrowers are stepping back on the sideline…
No, I think the big story for us is that the overall commit – revolving commitments were up and the number of commitments, meaning number of customers has increased as well.
不，我认为对我们来说最大的问题是整体承诺 - 循环承诺的增加和承诺的数量，也就是客户数量的增加。
Yes, I mean conversations with customers are still very positive, there’s a lot of activity. I think the big constraint that we’re hearing from – I don’t care what sector we’re going into is, just trying to find people to fill some of the positions. So – and every day they’re looking for talent, but with unemployment rates where they are, it’s been very difficult. So I think you’ll see probably some pressure on some wage – wage pressures across various industries right now.
是的，我的意思是与客户的谈话仍然非常积极，有很多活动。 我认为我们正在听到的一个重大制约因素 - 我不关心我们要进入哪个领域，只是试图找人填补一些职位。 所以 - 每天他们都在寻找人才，但是失业率一直很高，这是非常困难的。 所以我认为你现在可能会看到各个行业的工资 - 工资压力可能会受到一些压力。
Okay. Good. And then maybe, Mark, if you can remind me just the percentage of your loan portfolio that’s tied to LIBOR?
好的。 好。 然后，也许，马克，如果你能提醒我你的贷款组合中与LIBOR相关的百分比？
It’s kind of mid-40%.
Okay. And then…
That’s lend more Prime.
Okay. Lend more Prime. All right. And then maybe just on the credit quality front, any color you can give on watch lists trends in 30- to 90-day past dues? Is there anything out there that’s causing you concern right now? I mean, everything seems pretty manageable, but just kind of wondering if you’re seeing anything on the horizon that’s making you lose a little sleep at night?
好的。 借给更多Prime。 行。 然后可能只是在信用质量方面，你可以在手表上给出的任何颜色列出过去30至90天的会费趋势？ 那里有什么东西引起你的关注吗？ 我的意思是，一切看起来都很容易管理，但有点想知道你是否正在看到地平线上的任何东西会让你在晚上失眠？
Yes Dan, this is Pat. What we’re seeing in our trends is, those numbers staying relatively stable. Obviously, we had a decrease in delinquency in the NPAs and really in the sub-standard categories, all the categories we like to see. We still have a few credits in that work out bucket that we talked about in previous quarters that are going to be there for a little while. So I don’t necessarily see all the levels changing dramatically, but I would say that going forward on our loss expectations, exactly what we said last quarter. And I would look for more just stabilization.
是丹，这是帕特。 我们在趋势中看到的是，这些数字保持相对稳定。 显然，我们在NPA中减少了违法行为，实际上在不合标准的类别中，我们希望看到所有类别。 我们在之前几个季度谈到的那些工作中仍然会有一些信用，这些信息将在那里存在一段时间。 因此，我不一定会看到所有级别都发生了巨大变化，但我会说我们的损失预期正在向前推进，正如我们上个季度所说的那样。 我会寻求更多的稳定性。
Okay, great. That’s all I have right now. Thanks guys.
好，太棒了。 这就是我现在所拥有的一切。 多谢你们。
Thank you. There are no further questions at this time. I would like to turn the call back over to Mr. Brice for any closing remarks.
谢谢。 目前没有其他问题。 我想把这个电话转回布里斯先生的任何结束语。
Okay. I just want to thank everybody for participating in today’s call. Mark, Dave, and I and Pat appreciate the opportunity to discuss this quarter’s results and look forward to hearing from you on our next conference call. Hope you have a great day.
好的。 我只想感谢大家参加今天的电话会议。 Mark，Dave，我和Pat很高兴有机会讨论本季度的结果，并期待在下次电话会议上收到您的回复。 希望你有一个美好的一天。
Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
谢谢。 这就结束了今天的电话会议。 您可以在此时断开线路。 感谢您的参与，祝您度过愉快的一天。
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