Bella. you, Thank
Good morning.
and President of Financial Ternes, Provident CEO Donavon Holdings. is This
call And Financial Tamhao with Nguyen, the Officer. our Chief is and me on President Senior Vice
Before item brief we have address. administrative begin, I to a
and the presentation statements about other for conditions. performance financial Those of business future company's Our products descriptions for company's discusses business and general services, forward-looking include or will objectives plans, statements or or measures the outlook outlook management's operations, and statements. include goals economic of today forecasts
We forward-looking to the uncertainties, presentation. of also differ statements period question-and-answer during and today. may may make statements forward-looking materially following management's discussed from and risks a These actual results subject those are number
statement risk on earnings the factors and distributed this June that other SEC for the that earlier the to the was that any and XX-K. release filed ended year XX-Qs to XX-K from XX, on Information Form forward-looking XXXX, subsequent report Form available from are the is the annual morning, actual from cause results could differ filings from Form
they are that of this effective as and no made, to the only information. company date update statements obligation the Forward-looking assumes are
call. with, earnings this has for you begin in hope describes our review participating which you XXXX morning, To each that release fiscal of had our results. to thank opportunity earlier an I our distributed quarter second
I Los take the moment a to during Angeles. bank, this fires wanted first firefighters and thank Southern morning responders call California to As fighting a our the in
Our fires. thoughts by with the are affected those
fire held and ZIP located for warning X.X% monitoring million our actively codes evacuation loans or zones. evacuation in situation the $XX.X portfolio, identified and are We within the have investment of
damage. homes a of with X balance believe homes are both We We loan $XXX,XXX combined insured. are aware with of fully minor
will these the million an held quarter, quarter. most prior will million with continue during fluid from originated time. challenging $XX.X the in we increase monitor loans for work borrowers investment, recent this In situation and $XX.X to the We as sequential
most is the seems recent estate interest reduced although had their quarter, see moderate and have of quarter. in in $XX.X mortgage we payoffs, loan that also slightly which million $XX up XXXX we million other as of result and loans higher rates a it investors September activity During from Currently, continue real for principal to payments held activity investment. the
we rate mortgage as a Additionally, for rate adjustable of interest consumer result higher more are seeing rates. single-family demand mortgage fixed products
our higher volume. underwriting We to of certain encourage origination requirements loan have loan loosened a segments few within
comparison last Additionally, has of loan end our been $XX of to single-family in to and and around our XXXX will between quarters, recent and quarter, range the quarter originations XXXX similar in suggesting the the million. multifamily high are March million the similar loan pipelines December quarter $XX which be
approximately real construction held XXXX, XX, commercial increases XXXX, ended and multifamily loans. to the by million the December commercial in loans, when partly months loans XX, For investment X with business quarter offset in single-family decreases the estate compared $X increased by for ended and September the
assets nonperforming up Current and is on XX, which you $X.X December credit XX, million very September $X.X XXXX, to that from note to increased quality well, hold on continues just XXXX. will million up
XXXX. early-stage were XX, no there December at Additionally, delinquencies
buildings, that characteristics of but We these underwriting borrowers by to real perform particularly monitor well. the based -- collateral to secured loans, on continue commercial loans continue loans confident will estate office our are our that and
office various characteristics types our loans Slide of secured presentation have investment. XX buildings exposure by outlined $XX.X quarterly shows on held these million or investor for approximately of is our that X.X% We which loans to of
calendar $X.X XXXX. maturing just in CRE have for million X You should also note that we loans
longer estimated increase quarter for The increased for second was balance outstanding higher loans recorded provision rates of a resulting nonperforming to and portfolio, small the for quarter. balance of loan from in classified We of XXXX credit slightly and December credit and lower losses a estimates, the life in recorded interest prepayment a in investment. held loan market loans the a provision losses $XXX,XXX primarily the attributable
X gross The at to as allowance basis loans XXXX, for held compared XX losses for credit to investment XXXX. points basis September at points to basis increased XX, December XX points XX,
ended basis in XX, for interest-earning net assets Our average to compared and X.XX% XXXX, yield the ended of September point on sequential interest-bearing X the in of total margin to X X.XX% the XXXX, cost increased net interest liabilities. decrease quarter point quarter the increase December the for result total a basis XX, a
of points in basis compared change the points, Notably, quarter. XXX deposits cost our sequential to basis for ended the December quarter to no prior X declined average XXXX, down by XX,
our by in borrowing cost points December quarter the XXXX compared decreased XXXX the addition, XX In to of basis quarter. September
loan X interest approximately by net quarter to payoffs quarter compared December The the costs this points net loan of X loan net deferred deferred negatively margin the basis the with quarters. cost result impacted of was in average associated a amortization XXXX higher as previous
mortgage portfolio, our is than loans may rate adjustable rates. average some at of the repricing be but their than current interest weighted interest that New interest lower the of higher production originated loan are at being rates rates existing loan
average basis interest March loans a currently points quarter to be the we of to rate rate X.XX% approximately XXXX For X example, have to an repricing from interest X.XX%. weighted lower of $XXX.X in million forecast
to to reprice a is repricing Conversely, interest of June loans average of interest rates as conditions, market all currently also points quarter where weighted out tremendous the downward current million point result across have forecast would moved have lower terms. maturing there higher an rate I rate X.XX%. to XXXX a XX we basis opportunity to in from $XX.X be X.XX% funding approximately wholesale of interest that
Federal in weighted we certificates brokered maturing quarter March of Loan borrowings, million deposits rate approximately X.XX%. overnight Excluding average XXXX advances Home at Bank have of of $XX.X the and a interest
these of reprice expect to a maturities cost average weighted we to conditions, Given lower would market funds.
the the in but a of margin a in pace quarter, at All the continued March that quarter. this of slower current than XXXX experienced suggests net interest expansion
lower expenses. throughout operating continue We company for the look to operating to efficiencies
increased at to count the XXX last FTE year. XXXX, date December to XXX same Our on compared XX,
note were an XXXX You September XXXX operating will quarter, expenses the the in from December quarter. in increase $X.X $X.X that million the million
expected are $XXX,XXX increase run $X.X executive rate over of The of the expenses in was benefit nonrecurring that retirement not million future agency the due to and plan particularly expenses intermittent costs $XXX,XXX or anticipated periods. search of
we expect XXXX, fiscal for quarter. of $X.X result, rate a million to a run approximately continue per As
fiscal back oriented we monetary loan that that at Our an for yield strategy the management has course last short-term policy year. than disciplined of is time action believe is somewhat best more recognize of growth the the this We recalibrated balance curve begun Market portfolio sheet Federal inverted as Committee curve. Open to sloping the reverse the has and upwardly to looser yield growth
total origination successful composition execution high assets range with receivable of of to improved this and sequential strategy to The the total at prepayment securities loan volume to in percentage of percentage higher total the with interest-earning of loans partly a this interest quarter. end the quarterly prior assets. quarter investment of of assets were a We the interest-earning interest-earning lower and loan similar
to ratios interest-bearing of allowing We management business average and the total that maintaining borrowings. is of execute a average deteriorated in us on the increase capital deposits plan decrease an by our well-capitalized liabilities balance of significant composition believe cash important. We and the with without margin, goals balance our capital Although a in exceed dividend complications. very
repurchased and program, quarter. also we capital stock through prudent approximately XX,XXX in capital stock XXXX common buyback returns recognize management responsible the We that tool to shares of shareholders December
we year-to-date, activities of stock have capital cash fiscal $X.X stock of approximately net distribution resulted have fiscal distributed shareholders and our plan. Accordingly, repurchase to million of repurchased in common a management dividends income XXXX to the For date. million $X.X approximately our worth XXX% through
repurchase You a of should XX posted last to We the approved on everyone website. December note encourage stock review Board Directors our presentation week. plan investor also that our new
You regarding growth we supporting believe metrics, you company. quality of that management, we slides insight which solid and future on capital the give our asset foundation, the will additional will financial find financial included
now will any results. regarding entertain financial questions have that may we Bella, participants our