East West Bancorp (EWBC) 26 Jan 232022 Q4 Earnings call transcript

Good day and welcome to the East West Bancorp Fourth Quarter and Full-Year 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Julianna Balicka, Director of Investor Relations. Please go ahead.

[indiscernible]. you, Thank Oh, thank fourth and Dominic for East and joining our Officer. Good and you, full-year Bancorp's Irene Officer; Executive quarter and with Chief XXXX West Financial Chairman morning, Chief everyone, our earnings Ng, call and being on be available This our recorded for Relations Investor call will is website. replay

may on the or Dominic site. Management Relations measures. results and remarks, a other their a risks Investor statements, will reference number from non-GAAP slide and management make our projections differ deck due to During uncertainties, Irene financial that actual may forward-looking which is materially available of may discuss and

a For and including the financial descriptions non-GAAP measures, factors risk please today. Form refer X-K Exchange and Commission, filed filings the Securities a more to of the to detailed reconciliation GAAP our of with

over I now the will turn Dominic. to call

X you Thank for results will the you, review everyone, of call. joining us Slide our and Good financial I morning, our earnings begin of Julianna. our presentation. thank for with

Our in XXXX growth by expense solid asset driven margin which with characterized strong interest environment, financial growth, expansion combined and by loan interest net and rate and quality. disciplined performance a strong was rising strong management, revenue in stable was

the full-year result of profitability, year-over-year. in for all East Together, drivers XXXX, these fourth XX% both and for an of quarter achieved earnings full-year industry-leading $X.XX of share or per the record the increase West XXXX. of $X.X billion

was of our grew billion ever revenue year-over-year. total $X.X XXXX Our highest XX% and

the billion and on We a assets returned income XX% Our XXXX. $X.X for X.X% equity of grew XX% pretax in year-over-year pre-provision tangible on full-year.

per annualized of $XXX XXXX, we quarter-over-quarter. $X.XX, million fourth which quarter and net reported for XX% of income the grew of share earnings Now,

for and were XX% X.X% the on equity Our industry-leading quarter. returns fourth tangible on assets,

Our pretax nearly pre-provision profitability fourth X%. quarter was

Slide X, presents sheet. our of balance to a go X Slide summary and let's Now

in September XX, $XXX loans XX. our all-time or X% XXXX, as reached increase from of well high annualized commercial X% As of was average balanced was annualized. fourth and loan million portfolios billion, residential real growth mortgage, $XX.X total industrial. loan an quarter December likewise commercial between an the estate, Fourth and growth loan of quarter of of major Average

record increase billion December annualized quarter as successful of average time were of September deposits growth annualized. driven $XX campaign $X.X XX. fourth an from deposits, quarter. or Growth a XXXX, by XX, Total the during deposit reflecting XX% was X% branch-based CD was billion Fourth

deposits is book in and XX. deposit well of total of noninterest-bearing December deposit XX% Our diversified type were deposits as by demand

of the from decreased of ratio of XX% year loan-to-deposit to XX% the end as Our as September XX.

X. Turning to Slide

As you see expanded our can quarter-over-quarter. this ratios on in exhibit capital all slide, the

Quarter-over-quarter, a XX, X.X%. had equity we tangible and ratio December common capital of ratio value ratio per X increased and our XX% equity book total of tangible equity XXXX, of common Tier As a a XX.X%, share of our X%.

dividend on announce the XXXX. on an Board $X.XX and West per to increase in quarter, record February new approved East stockholders will stock to share of Directors pleased annual XXXX, February that I'm equivalent $X.XX from take of per share. quarterly first XX% common share to per X, effect XX, the to of dividend dividend The payable $X.XX a to

a portfolio, with our to beginning Slide of on Moving discussion loan X.

XX, XXXX, year-over-year. XX% December As and were X% of sequentially up C&I annualized, outstanding $XX.X billion, loans up

sector. C&I Our diversified is well and portfolio by industry

year-over-year. and were estate estate by is September up of Total diversified of annualized low X our commercial real well geography and and as XXXX, which real details billion the loans portfolio, and commercial December from loan-to-value X% consists property type X XX, $XX.X Slide loans. show of XX XX% up

which our residential equity home lines and we details consists Slide provide of of credit. mortgages regarding X, mortgage In portfolio, single-family

of year-over-year. West were XX% as of our Bank mortgage position billion mortgage primarily residential in are $XX.X first as totaled up September that of December a through East XXXX, and Residential XX, XX% HELOC December loans loans I XXXX. up commitments highlight XX, originated Our X% branches. XX lien from would annualized

turn more over and a detailed to now our for asset quality call of the will discussion Irene? Irene income I statement.

to you, with components strong. criticized metrics Slides loan decreased and level our continue the to loan. the ratio stable I'll loans for our unchanged asset and ratio asset XX. points. assets as losses low our classified September of Thank a allowance loan Dominic. points quality Charge-offs portfolio special on basis continues improved low X% criticized start nonperforming decreased loans be asset of Quarter-over-quarter, and At of quarter-over-quarter. X Both was from The of XX year-end, XX. be mention and and quality already basis XX

we quarter, or of charge-offs X third fourth compared charge-offs with basis points million in XX points, net recorded the the During basis X of quarter. net

million December from Our up of of loans, X.XX% XX. allowance or totaled X.XX% XXX as of XX September as

XX fourth provision XX for quarter. the third million, the compared we a million with of During quarter, for credit losses reported

quality the asset environment benign, and While credit remains vigilant we remain current to credit. continue strong is about

slides. taking to in our are to detail statement, managing discussion on loan allowance the of which statement on slide income losses. Slide summarizes more a for the loan build portfolio of I'll And our the measures We the items income proactive actively line XX. following and key discuss This now, moving

is fourth the the million and in an quarter of and resulted with projects fluctuation XX XX% This the in placed XX% in with fourth the This effective other were third the for compared were credit quarter. tax million, the fourth third in rate was the time, was tax Of quarter. service. into lower amortization tax expense same effective note, in fourth quarterly quarter the compared in rate quarter. related a investments that XX increase the tax that to due closed amortization quarter, investments the credit in and At

of XXXX, rate effective For XX%. was full-year tax the the

average XX, sheet. key I'll and the net balance with net XX on interest drivers starting of now Slide review our income interest margin through

well major loan average our As of annualized his portfolios Dominic mentioned fourth was deposit average among reflected a and annualized deposit campaign. remarks, of X% quarter in X% growth balanced branch-based loan successful growth

noninterest-bearing XX%. XX% deposits in was Average our Our quarter-over-quarter quarter. average up deposits demand loan-to-deposit ratio fourth the average at made stable of

XX. Slide West, was of XX% the XXXX highest net net East the income to $XXX.X history quarterly of Fourth interest quarter in annualized. million Turning linked interest growing quarter income

Our net interest margin of expanded X.XX% basis points XX quarter-over-quarter.

which see compression loan can from side. on you partially the higher impact basis from waterfall earning in net net the increased XX XX the offset expansion points chart funding asset margin points, the As the the basis quarter by interest of interest margin of reflected fourth by and yields, slide,

included because portfolio. To income swaps preserve down, asset-sensitive rising loan benchmark X.XX billion fourth early net in rates of XXXX, when the billion of our interest rates Our net interest interest collars in quarter. income added growth go benefited from added X which and interest we

comprised XX to increase The yields Turning XX. Slide X fourth quarter. yield points plus loan average points overall average fourth in X.XX%, to was contributed of The loan the yield the of basis basis average which yield X.XX%, an quarter-over-quarter. coupon quarter loan an yield adjustments,

major X.XX%. As December last also of coupon quarter the the XX, of this for was rate yields coupon spot present our five end. portfolio each for loan In the we slide, spot loans

XX% XX% as have rate or of impact portfolios of portfolio rising linked to see the loan and total, to XX% loan SOFR In can rate, linked repriced. of positive interest the was our rates. on loans prime You LIBOR including the each rates variable

minute that a would variable hedging level of in sheet I real interest To is our ago. balance highlight also loans rate estate the contracts over discussed clarify, I have commercial XX% from this rate derivative customer place. distinct

With and variable sheet the customer level help our the derivative helped swaps, from same benefits sensitivity. customers balance protect currently collars caps, structured to remain At contracts, the low on rising customers our service the into against enter asset rate loans rate and the we've debt interest time, level bank costs.

to Turning Slide XX.

XXX points up of the cost fourth from third was points, basis quarter for average quarter. the Our basis deposits XX

deposits total beta same basis Fed point This points as the XXX to XX% XXX year-over-year increase the funds relative cumulative in on rate rate period. of spot XX, a basis points. target of December the increase over to a Our XXX basis translates was

deposits cumulative rate the from position our In rate of loan spot basis We on strength points has levels year-over-year. our loans Bank bolstered for as This cycle benefits variable East been our growth the of rate historically demand through increased started the West a XXX cycle. interest has and rising asset loan of comparison, revenue beta strong XX% strong liquidity. sensitivity with coupon high the supporting portfolio

navigate the XX% cumulative cycles. with lag management. come to With deposit to – we pleased we date, cycle for are of growth interest-bearing rising have outperforming and This feel we our beta We XX% rate prior through accounts a date. deposits average the services products are cycle deposit to careful had current the has interest and With with in pandemic, cost beta the since about that comfortable cycle well. in continuing treasury management and

and loans income fee across fourth the XX%, income were third fee a year fee to growth third on income income business. most X% X.X% XX% quarter we XX. from on and our up of $XX annualized Moving Year-over-year, the the down saw Customer-driven on from million, lines ago. or of was of Total down quarter. gains in net in from sales XX% noninterest Slide quarter

million. Moving on expense to quarter XX. Fourth was $XXX Slide noninterest

lower quarter-over-quarter of deposit driven amortization, $XXX Excluding or the compensation third tax was core noninterest and and credits in million amortization employee annualized, X% benefits other down and adjusted expense by expense. investments intangible quarter, X%

total with quarter, of third ratio XX% leverage, quarter. The revenue quarter operating fourth positive the efficiency a in adjusted strong XX%, generated XX% fourth growth decrease plus we again, in sequential compared in to expenses. Once the annualized was

pre-provision an attractive grew income pretax the pre-provision pretax adjusted linked Our was quarter. quarter and X.XX% ROA annualized, our in XX% fourth

our I'll Slide with the on for And of full-year outlook that, updated review XX. XXXX now

high-single-digit XXXX, percentage we growth the expect compared year-over-year loan XXXX, currently For in to full-year range. the

We XXXX. in expect all rate XX% Year-over-year, production income we portfolios loan interest from expect range. our in net the growth major low of

year. XXXX X.XX% assumption XXXX. rate is fund's modeling, forward to tax assumes investment interest amortization Underpinning as funds rate and XX%. the the credit income the Fed target betas our X% of will of that excluding a April in continue and of Adjusted expense noninterest which year-end Fed range XX% interest in we our assume In in year-end, growth, target peak of deposit with to by late rate cut the curve the rise

expense our We in to leverage positive and outlook result year-over-year. operating revenue expect

by provision changes In outlook. the terms largely driven in macroeconomic be will credit XXXX, for the of credit, losses for

our to macroeconomic experience expectations We conditions providing expected gross recent for stable. be charge-offs, stay which our gross in-line are with charge-off if are

in charge-off X the context, XXXX ratio For points in and gross basis points basis XX was XXXX.

are Asset quality problem loans limited. the and excellent, any potential losses today from is

if normalization low realistically, backdrop credit weakened, economic expect the from today. to see some levels the very we However, would

therefore, and of the income these part for our close investments, credit tax XXXX, credit amortization full credit should to tax be tax year. we be credit million of into tax permits amount the tax low terms approximately of $XXX related that will excluding rate approximately tax items, service the calculation In go currently to expect housing The full-year. for investment of tax XX% in

For calculation rate and placed and credits rate the reflected will $XX the tax of [ph] that credit quarterly million amortization, quarter rate million] the approximately due timing tax the to XXXX, we be expect the will to variability tax service. be investments in quarter. in [XX of be these amortization for tax There into tax tax of the first credit the

over I'll the back remarks. that, Dominic With to turn closing for call now

profitability XXXX Irene. industry-leading earnings, metrics. revenue, Thank the was West In year and deposits, and closing, highest with ever East an loans our achievement excellent for you,

We bank of Our and to history, annual anniversary. continues Throughout have our beyond with and exceed pillar to look service customers. our our way a $X and been come has as be billion. excitement long above customers our the our forward XXXX. earnings spirit our The XX-year going success celebrate of to now we since XXXX

our of dedication clients their to We and contribution our bank making and are all to associates thank a success. to the honored for be choice bank wish for our

New of and Lastly, happy all wish us. to I Year. the prosperity, happiness to Rabbit the a health, want this May of everyone take opportunity to bring Lunar Year

to open now will up the Operator? call I questions.

go Rochester Dave with Instructions] ahead. you. Point. question Please The [Operator Compass first from Thank comes

during on guide On you guide. mentioned XX, beta NII beta the deposit baking Hi into first year. XX%, you're this was quarter. guys you the positive good what morning total question guys. deposit the I still know point? for the is last for very you got that the through Nice you've at beta I this My XX% low? means and highlight wondering Slide the you mid-XXs then are are which rise you higher But about than you XXs or from are year. expected how that? borrowing levels, would cycle, deposit And do it what something deposit upper betas Thanks. thinking growth overall think here making interest-bearing

point growth that we'll XX%. deposits. point at have other same in CDs at competitors we've factored full I good for at cost. to At time modeling we question, successful XXXX beta our NII deposits, to opportunistic Overall, XX% of in in that along time, look able for be and lower general, perspective guidance for we're I market, that our a than with Great with the the in to be And that our in increase fund are XX%. Dave. interest-bearing think this will cycle had that's deposit deposits growth very of with think from in the continue time, of the the loan Certainly, we're campaigns Yes. the this the the beta low with in

Great. one follow-up. And then just

when I Fed you or again. that curious result what your Thanks might a thinking the expecting thinking lag for there are as little On you include first you was cost of benefit a cuts? year, the get cut. the movement of you're couple with bit a that end you'll there the cut, of back rate immediate Are of deposit be

Yes.

around at I think it's The in the in, that Dave. that, late we're not this baking expectation still point. year

Great. Thanks.

from Manan The question comes Please next ahead. go Stanley. with Gosalia Morgan

Hi, good morning.

Good morning.

on hedging I and loan to the hedges betas putting cutting do much cycle, also on, rates Fed and of you've also books. plan begins the might ask the remaining how cycle both Can when rate the your more efforts to on speak the you to hike how the for on you wanted rate been those from here? impact that

but kind was of of that specifics quarter, bit information can as far [ph], question. Certainly, as largely impacted great Certainly, the CRE that, an loans little us, as the we that's adding third I hedged. after quarter, there started the Yes, of fourth we’ve much how this not [quarter-to-date] call. get against we a do impact have that

of we swaps We have billion on. collars X.XX put that and also

that this point time, of in probably the Committee, certainly, opportunistic another discussion would to sheet about in positioning there's and also look that. we the overall million this and evaluating of At balance our with ALCO do, but we're couple

think continue to makes sense we'll most environment to in changes that something well. that's So, interest we the the given evaluate rate see what as the

right event early too think the begins Got about on it. in And is now? we is cutting bottom NIM there or can a Fed that the to say

I early say. to it's too think [Indiscernible]

on And Fair watchful the in focused covenant a note? breaches any there credit, been enough. then just or you have other November, cracks, been else, you've cracks any like of reviews emphasized everyone you're early And you've for been normalization any to in that credit. detection on making, on

certainly individual from our think an right. that we loans, on new process. I our of books, do to couple a that throughout, Not positive mean, is continue things I very be reviews we're commercial continue happening, working I of books that to basis, we not think problem work we're on consumer on credit lot of are lot that through. perspective overall, loans the do as that But years these same positive what's problems there in a new is last through loan

So that's that us positive is certainly feel and well. we something positions

we've Yes, actively loan overall. managing the portfolio been

So, is relatively as asset you percentage, in see benign. the can criticized

and aggressively been look see rate, So interest ongoing always far, loan And so I we it and that's obviously, far, very how why surprisingly this managing very, quality the asset and portfolio we've good. review at rising so good. do the goes

next Please from Poonawala of comes go question America. Bank Ebrahim ahead. The with

maybe guess I sticking quality. morning. asset with good just Hi,

about handle that? in doesn't about be issue book XX, Is a this on you for interest within that these good loan able Dominic, do [steps] showing visibility Like, a I East haven't a absorb any the how have yields of issue your you Fed appreciate So, have issue that should that? were portfolios? said, gone feel X%, but become the loan Do to out borrowers Slide West? rates timing – it portfolio, good into funds credit just or you're peak you is they ability at or do these you up what [ph] you if seen timing to where and where it to the feel

when say we our stress tests projecting. do when it issue, – we're real you these – when we comes timing Well, obviously obviously estate, on

that it's at can we're looking forth. something just not So, whether of as they and so today, handle

from from the cash existing level So, good that we that in getting terms clients they've our perspective, been pretty feel liquidity of about the business. of the flow

cash So, guess a good. is pretty I is the in still what notice that way we that flow

strong. The back economy. think economy still really the I it's is to coming down

a you pretty that going very we if will project don't looked at point, At are economy, Now, be Things this we deteriorating different. it. more it – much see well.

expect And terms it. the are growth, in Irene growth talk so I market but Got of lower where growth that mentioned think appreciate the upside and growth pockets, I more on loan for guidance, as share more what us particular you're potential strength about just in across verticals, loan opportunities separately, maybe growth? markets guess seeing I you any any but categories, just surprise know we of to terms and

group. always I think, have very more having in overall, a we diversified focused been

So, do and there better standpoint, to that one to or from industry be a vertical there's always than seems here that particular bit the going others.

we far, in too ran way. gets it if overall, However, it any

more is see loan in because why of standpoint, So, portfolio here more actually we type we even a manage that that till it. that's much you diverse have always

actually but originated, go if have to couple continue we just weeks in we say I pretty PE line that but also may I would decent that stronger region more and quite private looking do do our few Greater have, a would we be a that China like and to surprisingly, so they And continue capital so mean, growth equity, call – well. we have pandemic, that far, I year we last loan that, growth. probably despite the from we’d that commitments So so, expected have then expect direction, at of a to maybe able

they're percentage have balance much they but a a growth, doing smaller obviously, as Now, well. sheet, pretty

we that because within strong better. be step-up wanted very few competitive do everybody to teams we So, a we'll also organization, able areas a may have have other the different to

quarters. expect just we in will So, step up different different that team

The next with Please go question comes from King Securities. Brandon Truist ahead.

morning. Hi, good

good Hi, morning.

NII kind if the the from the hit potentially to of the outlook guide levels, just appears assumptions year margin. It curious the – HS trajectory as you in your trajectory your again and going also with stays through the on wanted I for from So, guidance could margin curve touch as particular in assumptions? and that. flat your are, I'm forward rate the the what of far XQ NIM

Yes.

expect at you the is well, NII, my think a when our more you do this NII Brandon. tell, really grow level. can do about I what Then be fluctuation We at look of in as the on the we of happens guidance the but that positive our from to per quarter it expect we both, more depends point, to math XXXX. expect quarter, we really do guidance, can focus fourth

see your talk what coming in Okay. that to growth categories areas losses deposits more ability in do your you or could outlook what mitigate And of growth, And about you kind most from? DDA? regards to, of then deposit of for

rate quarter. below have. of one candidly the now remain customers we order attractive our have competitive, we our at just we enough of in have that priced fourth deposit the CD six to but one portfolio from duration. right benefit Certainly, and diversity campaigns month look customers, we market, and also these things we When question. in Great And Yes. the deposit is

go to long. that too want don't We

relative right us and attractive. other, that And so customer do It's a to relationship continue costs it's stays funded think we to something now. that kind We also a base that larger of is has with us. with

board. I'd XXXX for deposits across are think going and to we When the look where we say grow,

strong new at it's the maintain are this rates, you to pre-rising still on time. the Although the customers all that are Pipelines have in we accounts level rate of the deposit kind realistically, onboarding hard the environment, DDA deposit side. in know we balances

are that The seeing that So, what certainly product treasury we're services a are in today. kind positive benefit made of very, doing. we're cash we something about investments we've management, management,

the think which we're as I noninterest-bearing Today, to the we at close to in way of portfolio, height maybe time, entire DDA a the to to XXXX liquidity, XX%. is COVID, also, up wanted during highlight back XX% like to XX%. down the all excess had because percentage went deposit to I late of PPP of deposit

a liquidity be the forth, so as interest there, of if even by can will sustainable. would but So, liquidity rate and lot the was you you there see, expect not rising that nature, success and

the each good. So, percentage deposits it's we and then [stand], pleased actually and points very, our and what X far, quarters, very throughout are forth. quarter last so the watching kind drop And so few so see noninterest-bearing basis of

So, XX%. other to the noninterest-bearing that, of And customers. new dropped by the It's a there. now continue sitting way, lot we to in deposits bring part we still XX%. That's is

new bring at a new to We're one customers. this still time. continue relationship We onboarding commercial

So, it time, the deposit. continue to will in noninterest-bearing grow

excess to money moving and It's put market it who there deposit, are in the account maybe market people the, accounts into is or that rate liquidity of there so terms some excess liquidity whether that in forth. are of Naturally, CDs are with relationship maybe today. just some

see up. So, of gradual some in that that's keep balance, is accounts, reduction terms on number noninterest-bearing you why of but going deposit there they

Jefferies. The comes ahead. go Please from question with Haire Casey next

guys. thanks. Yes, Good mornings

then Just up were [X.XX] what loan Was guide? And wanted color wondering utilization assuming how loan are – shaping on on growth to for guys [ph]? in any follow rates the how up versus outlook. pipelines you your

change assuming not from we're where Casey. in rates, point We're a Yes. flat At at. this we're assuming utilization in time,

and still holding lot exposure true quality also gets attention the billion is $X And on then the stable. wondering, a pretty Understood. credit is from was I investors? of obviously China, Okay. for side, in that everything which benign

is better. China even

portfolio. pristine have a always So, very, loan very strong we

still same. exactly the it's so, And

think only to opening going the So, was we I economy help better. with us up, that it feel

be XXXX still the it's time will sudden up, will don't more there we business on of track. bit while expect While than It that little probably benefit opened loan surge XXXX to, us of sort get a in origination the because economy take some for in XXXX. going back to

next The Please ahead. go Davidson. D.A. Gary question with Tenner comes from

Wright This Tenner. morning. dead Gary beat across the Clark want for front-end to are expecting is of it again, I don't horse, on in good Hi, or the to terms loaded a growth just loan quarters? [indiscernible] you but be

We're more it isn't maybe assuming a that year. half the bit front-end loaded. That will of be little latter the throughout, in

been And it. rest great Got have Thank of the and questions quarter. my answered. you

you. Thank

The next question comes KBW. go from with Chris Please McGratty ahead.

Dominic, much now there's only really resistant think in the you given the economy? [tone] how signal if wanted I return any you're change dividend the and in. right position to there? you've good that pretty capital see [ph] was but a Hi, know buyback, the, on you're the given have the strong that to just morning. Is capital, capital contemplating I been

just want I interject. to

buyback. been resistant We XXX not year. bought have back We to million last

XXX very we opportunistic that buyback. in quarter Yes, of Board execute million approved we second in anytime can because the the we are it's XXXX. still And XXX have terms the last outstanding year. we million by We did been want

tangible [ph] [raked return at XX% fourth it look quarter, on is to have just up] You we equity. that

So, we to this. need things one those it's do of that obviously, really not

we However, have shareholders-friendly. always

we quarter because that million in will at jump XXX the time, at second moment. right absolutely use if capital So, right price, that at what the for great the a opportunity, the thought right I was see ever great we did there's execution will we sure, I it. at at that

mindful. have also be we but be to – So

And look One our are Bank, very, doing and of of of asset a West well – we extraordinarily rate we economic from at interest benign of is of the of because ratio somewhat today. East return advantage And standpoint. kind equity return you great capital that environment. the this

that we're than to give been been economic they higher this However, why X%, confidence much business point, that West completely rate, a situation, a others. different interest having customers banking X% the had a capital trouble. much rate We, be kind East absolutely level about wanted were having in unemployment had stronger this, like it of our at with

was us we and I global doing for really capital of So, a XXXX XXXX crisis, in during been just This bit the back have than always mindful well financial somehow, our has really, peers. that. more somewhere,

with so, more us. And ultimately, comfortable feel customers

we've been very always of mindful that. So,

key So, that's one reason.

that, capital is we just thing and case – so excess if to not don't there acquisition potential some forth. want other The have in even opportunity are

So, in acquisition. very choosy potential we are terms of

something However, available, always to ready if execute. there is we're

of may want that that do we And are if be to we enough other, multiple we of confidence combination growth we we us we ever situation the right the that factors to of cause is price but very all we or comfortable feel of in that some So, buyback, step-in. a today. thing. a do stock whatever other somehow And there's where not that We’ll absolutely where reason way – are one it or the the that feel will or a maybe are.

on that. count you So, can

Thank Yes. Dominic. this you Thanks, for perspective.

amortization. but I the want tax cadence of to understand Just, do to tax rate. the ask the expert, I sure make not want I'm I the

So, [indiscernible], XX% just XX. through the [ph], was will tax a tax said amount like XXX rate last [XXX and million us over the decent amortization help think like Irene, it is roughly [XX lower Because a little you flow of million] rate? year can a little looks with the QX the was I [ph]. you over million] And

mid-to-upper kind sure rate, you. a to just So, make want teens Thank to mistake. I guidance. this I'm I tax on based coming a of don't make

Julianna. Hi, Chris. This is

for your will will it vary which with tax the of depending vary terms your In assumptions on pretax rate, costs, income, credit for obviously. for assumptions provision

the grade amortization. go million think will a that it on of amortization that look XXX into at when of of tax credits, terms tax basis, tax you the full-year XX% as of In

order booked XX% X, close service. we will when in come go to into service. and close Therefore, that's XX first rate year means in as credits the X, quarters be into and amortization on the amortization That go X However, what's full credits higher into that number million. and for docket quarter, up for the

So, that slide with will for go tax calculation, first calculation tax of and detailed you a for in if will can we million credits up the wrote you the follow on I rate be deck in the quarter, offline And more year. like. through the XX up

The comes Please Jared go next with Wells Shaw ahead. question Fargo. from

guess in goal to your good add the look potential is made you've of should Hi, eliminate all much the that when your to the positioning of we moves thinking asset – swaps or about at earlier and few with you. sensitivity be asset get I XXXX to collars earlier just morning. Thank quarters? that or you over sensitivity asset and sensitivity more, sort first general how

that I our to the we loan making. even is asset What we Jared, portfolio, would when that, to see that what evaluate happen, asset perspective, to we sure look changes question. think isn't are balance we great kind that from at remove we want Yes, able expect that risks hedge we're of might sensitivity. be our to these the make we still that goal, sheet sensitive say rate and with interest but

the potential lines in my on for what and then any lines? growth seeing you're among follow-up, different terms And income fee there Okay. of the outlook

Yes. Great question.

see if the our things the then perspective made, with the of Market, factors, that still on do as investments great. I On around. driven with or going growth control, aside things that we that over, customers, that core down far are think kind have to would from continue we've perspective, But say you – balances we that and I our areas effects going maybe within have things especially from growth that, that that income, that fee that's a it if look break you as customer to expect don't from and mark-to-market we the those be perspective and a at challenging, that's to of also increases. see derivatives a control that we'll

a Please ahead. follow-up Bank The next from Poonawala question of Ebrahim is go America. with

of are cross-border in the is your views, think there and year? on that And this And of, also are guess to about China, the China I maybe you business about evolving positioning? that strategic you. does mean, a thinking would APAC, bank how I just you. terms do relationship given kind as you increased Thank Chair to capital for up how we Dominic, now wanted opportunity create see thank Hi, that's if hear cross-border lot appreciate in love but opportunities of of the more I emerging love to is, in growth business. more allocating creating would growth stronger reopening connectivity, the given one, like as underway And China? opportunities its follow and this hear to that I

and to In at a to the back China China, the having restriction not the a our least been of That's three do actually and team just not like opening about to because quarantine for so many of the the – China last forth. so and post sort factor terms to big of not a, foreign years. have like management do two, pandemic in it's of investments help out the of travel ability opening that to

that, substantially, many by that. they And likewise, think I factor business that's around that so, thing who the same with one. helps China, the were in I of a and opening this restricted then world the doing are who up, huge business that's for think And

The regulation years, sectors video second media, Obviously, you more business some that hinder or last it, are government up name having grow. much gaming, were estate, new whether policy the their time social hard of that two Chinese entertainment, education, or to of we part real ability every are a because policy hammered you towards one business. is came these the challenging the in really high-tech, three sectors,

are getting the for They're real things et in estate much to also more sectors. friendly these direction. cetera. to support few completely weeks, providing just Government other really Now, business different the turn a last industries,

And and so that, – also majority and with getting shares let's say, their to are forth. license that additional approved investment we get their also foreign see so sign-off getting investments

So, we opportunity is at do the much that see this business stage, better.

always have mainly our cross-border reflected traditionally on then we Now, focusing West East been business. on Bank,

And policies, this business. would the cross-border kind opening clearly, that encourage additional so, of think up business-friendly, I more with it and

related usually to that keep attitude has other we U.S. keep the to in Please business improved. very see of the we biotech ought restricted is maybe not anything hand, issues, despite maybe side But that from in towards that that mind on – mind are the the that China can do some high-level business national highly or frankly, not that, been West really that do type with. technology to the has very, security sensitive have the quite or East

very, consumer export to that and that [ph], like security business and import focus cetera, to et this our or the that to are [indiscernible] issue. national is investment market electronics, not related on [garment] common, items And very

even pandemic we the customers. feel to was literally against are to down there still the our We shut additional by grow still during – new way grow in We find of So, a do plenty borders. China loans. when room bring that

So, that wise cetera. choice. this grow, be push Thailand, we the have growth that trying organization sure particularly, et East I pretty just in continue terms we're of also that also of the going Greater confident to Malaysia, will whether going in throughout lot new Indonesia, make but we will that continue that, to opening expect there, observing opportunity we business expect rapidly be But the you it's Asia, West feel to because will as that opportunity region sustainable that good because be steady would and Asia, stay don't Southeast think and of we that I we expect market a an make into Vietnam, to and something capital the to Chinese China in continue and mentioned, just a forward expanded a to

be opened continue those office] that's to migrate will our we why which of many to [rep Singapore. regions, reason in into also a [ph] that us. their who expected we business And the beneficial customers So,

will evolve we sure expand West. the we the to into can this make that and model as and Asia East to business So, continue grow the bridge between and effectively

you Very much. helpful. so Thank

Thank you.

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

march for April. and in you want XXXX, Thank good with and call to in us forward the all about to to thank joining we'll just you. all for I we Well continue today, looking really the are and forward you today call where feel we

Thank now The presentation. for conference has you attending today's concluded.

all You now disconnect. may