funds interest lower during index a increase we resale growth a that Thanks, by funding interest the mentioned, including reflecting expense the rate and favorable million on that of quarter. These were $X.X with fed linked deposits strong in X.X% sold Net or reprice Mariner. million million and additional yields was along $XXX and X.X%, an income loans.
The $XXX shift securities assets of DDA billion growth, driven represented or average of loan reinvestment strong partially benefits growth, sheet million the Mariner agreements. mix in experienced balance increase variable in by earning in $XXX quarter composition, repricing average $XX.X offset
of quarters, began prepurchases in During bonds impact of treasuries of delevering the $XXX our of advance The planned we approximately last these $X and U.S. securities the certain in mortgage-backed repurchases agency quarter. billion nearly was of average held X million by partner. fourth
X.X% on at other year-end. was trust fluctuate and by primarily trustee and FHLB or borrowed funds, can where advances.
Average driven the particularly markets, tax and DDA interest-bearing offset $X.X linked liabilities the from deposits quarter plan the Average borrowings repayment by in BTFP interest-bearing billion increased under decrease of capital growth increases quarter based the partially reflecting payments and in bond of DDA activities, with corporate
indexed flat The hard percentage total rates. short-term to approximately interest deposits XX% of index of with relatively remained deposits
Fed changes, XX% these negotiated at our deposits As rates. current rates market fund soft of additional reprice An deposits are index, immediately. prevailing balances
these Fed On generally deposit experienced banks expect peer on betas the move be we rates moves. steeper pretty we down following as deposits, way our rate quickly this than will soft continue to Overall, we quarter. to
X related to increase points mix, basis interest-bearing a excess points Net the related X.XX%. basis funds. and of partially in basis interest of levels And reduction points and of to free margin by drivers to basis positive to XX the the in basis points changes related primary for benefit from the -- from levels, borrowing basis liquidity were offset negative X XX fourth quarter XX points loan increased points the X repricing deposits, of sequentially impacts repricing
outlook to the fourth expect our rate accounting the core results X will quarter Heartland UMB 'XX given quarter, and XX, months relatively additional of on stand-alone next quarter, to merger. determined the be be yet we operations impacts into anticipated for levels. Based Looking associated from quarter UMB closing accretion margin our purchase no of all include first cuts months date flat January this with X to the and of
of adjusting that place also the have to As monthly. Details repriced months, shown on XX% with loans indexed the side we and on those of rates right XX majority Page the slide. next within XX, short-term the on of in are hedges
X, fourth floor floor spreads year-end, we quarter, spreads. value. $XXX comprised XX At notional and $X of the had each million we X contracts X with of added value During billion hedges, notional of
with next the their billion over windows becoming start on Based the days. remainder effective are the the arrangements, $X.X within XX billion forward $X payment of hedges
net Assuming our be of no additional cuts, fairly these is expected income the net to on hedges impact modest. rate interest
increase AFS quarter. portfolios HTM an billion, X.X% combined averaged prior the and from The $XX.X of
in As I closing additional and bought quarters, securities mentioned about in of advance the fourth the we HTLF third acquisition. preemptively
the standing currently at our profile of announcement, approximately HTLF that portfolio identified investment billion. at of had match discussed and we As $X a securities pool the time didn't
mortgage-backed agency average We this tool portfolio or in close, in remaining expect U.S. for off had yield bonds while to into treasuries.
The likely sell X.XX% of our X.XX%. a rolling reinvesting was the proceeds securities any quarter, at securities the yield purchase
with off will help interest expect average cash action. in any $X.X X.XX% an of loans flows regardless next bonds the We accretive these over XX reinvestment yield to current of or of roll months. securities the of The Fed yield at net margin million
Turning Fee linked other in back million, million on part income UMB of quarter noncore asset also income sale in quarter pretax the X.X%. increase million of assets. $X sale Distribution the included income $X.X the gain gains quarter servicing a $XXX.X Services, the our business. of to of statement. a Noninterest was on the fourth in recognized of We
by strong of income in billion. sheet lines. traction XXb-X Excluding at the money driven revenue.
Corporate Trust wealth these off-balance fee increased and two linked months market core money approximately in market now $X.X quarter reflected million our nearly income private balances $XXX business fees institutional higher by items, and Brokerage million $XX.X XX% increased and XX past have our stand
our $X This the ability and private demonstrated off-balance both to million activity, business mentioned, variances and and quarter. security securities which has in Trust wealth servicing sheet quarter quarter. income, market-related X.X% offsets and on-balance deposits, gains of processing income captured model. where garner Mariner to Partial diversified asset has sheet from thanks third strong further investment each the our the strength include or third some from COLI the increased million decreased $X.X
We $XXX of million. $X.X reported million pretax included noninterest the for quarter acquisition expense expenses of
expense had businesses charges, the which as we linked expense additional and line, quarter. expense in $XX.X losses other bonus merger million resulting included million basis, fourth the within a in several quarter. salary higher On operating increase performance of operating the million noninterest accruals. strong increased incentive excludes an continued, in $X.X $XX.X Additionally, our and in
meant second on our While higher. these half that results, strong fourth be the we measures revised calibrate on performance, particularly our our these accruals quarter performance year to accruals throughout based expected needed
expense. deferred expense offsets to supplies $X.X Expense expense related included bank income. decrease COLI the lower million offset lower is compensation in The card and
the expenses quarterly Excluding our $XXX I some starting to put would items for closer mentioned, of normalized point we million.
our stock from that Additional the Heartland. pay $X details press are on preferred first available quarter, we release. slides expect approximately in dividends in Separately, million we to and will assume in
Finally, full smaller costs increase for to was our The fourth XXXX. income XX.X% primarily effective related portion of tax year XX% the to for and nondeductible tax-exempt securities municipal both XXXX rate compared higher XXXX a year quarter from acquisition and versus XXXX. full
year including XX%. HTLF to of XX% the an acquisition, full our effective estimate, XXXX, tax preliminary For is rate
to for turn I'll the it over Now session. Q&A operator the