Sandro. Thanks,
Turning $X.XX income net quarter. net $XX to share to Slide this our income X, of was or $XX quarter compared as million, $X.XX per last per share million,
non-interest strong and a interest increased of while leverage this In quarter market is shake a to strategy revenues expenses core line operating very growth and in only strong our due the off by business control. provided to Not earnings earning represent expense growth a operating X% to Our acquisitions business. both lead the earnings The deliver well challenges of strong was earnings. that forward it business. solid. growth quarter-over-quarter leverage, our deposit enabled controlled. grow us in stable Quality lead the good, did our more banking was this were the Fundamentally, asset level as and costs the the quarter revenues modest to grew results effective leap XX% proved attractiveness were net of of mortgage but a of banking level significant
the remained of our was unblemished operating target quality range. upper leverage our and half Asset in capital
ratio X leverage Tier Our was X.XX%.
be expect Tier We our leverage are proposed regulations adopted. capital the to ratio X X.XX% when simplification
expanded costs. the margin growing deposit in saw X% modest business. and first the Delving interest on interest as assets net progress raise turn than let’s points nicely benefited further, banking costs in Slide in ongoing from were Net to yields made the and impact two statement. up quarter we the into margin in the deeper XX%. a XX the income by late X Earning more offset of nine So representing quarter, acquisitions points the we've dive income the to increase total of beta only deposit basis basis into assets in higher X.XX%, earning deposit a expansion our
this deposit HFI helped branch But us higher For the the loans industry XX%. on that comparison, this across manage that our beta are quarter, to outcome. betas our deposit yield of we for a have points deposits the XX loan increased the DCB we noted believe of inclusion positive basis costs
the $X our mortgage betas a deposit our market, expand will net improve as deposits increased interest margin. We further income and mortgage Wells Despite expanded million. non-interest Fargo XX%, revenues expect very challenging
on gain $X on revenue million Our assets improved the while mortgage sale return million. the by rose servicing $X
costs from mortgage The locks also million gross of a loan a loan increase percentage fees We quarter, The and on as charges related XX%, change improved rose higher in seasonal and the higher a a rose driven volume offset closings. expenses also, higher by servicing well-controlled. mortgage mix originations in in driven The levels increase in by of mortgages. purchase scalability quarter. improved margin. basis million return The sale sale partially shift the quarter. from assets gain expenses reduction securitization last result towards asset to in mortgage sales. of compared a the revenues the the gain and the reflected increase lower reflecting as purchase Fallout-adjusted $X mortgage basis net experienced by Without last from $X originations the a our in this to business. remainder quarter our net on further the from revenue. the remain mortgage speeds a expense $X performance volume, return have quarter of slower relatively been quarter from XX from prior in during The quarter late gain spreads margin in on The million of points. the increased pushed towards this challenging XX margin retail the XX% Volume-driven net million relatively prepayment was this and hedge increase higher net reflected a largely points resulting with resulting demonstrating in a in Macroeconomic points flat on period, to And RMBS flat primarily channel. gain XX% fell gain environment; factors million, quarter. of of wider, transaction X quarter would of a sale basis production impact, to $X last impacting $X at GOS lower mortgage
by at the lower low and our to risk last this among in economies Flagstar branches in one expenses the are plus We the total of full a the decline quarter costs of that ratio realizing loans loss levels that the were their a efficiency from the acquisitions, the rates. measure benefit quarter. negligible, allowance strongest with Credit at business continue Net XX% to as to confident our number of and and allocated delinquencies directly coverage was peers. grow into includes million community negligible can again quarter, banking million bring reflected fact, both continued of were business we the as this we of We're we bank. $XXX unit $X to direct The provision saw reduced reflect this improve expenses. allowance over In line very nonperformers of we XX% charge-offs Fargo the overhead Wells with pleased improve of time X.X% the stayed loan are and scale the both portfolio.
quarter effective company's XX%, the was Finally, our tax rate with consistent expectations. this
highlights loans rose investment So for or Average Slide let's our this held now sheet X, to $XXX which average turn quarter. million balance XX%.
impact with in growth acquisitions, estate loan HFI broad-based C&I solid rose loans Excluding and of real loans. Commercial warehouse, the gains recent commercial X%. average was
$X.X our in a average the X%. portfolio XX to ended with Santander than the nine continue rose higher tangible mortgage we better and Average see as from in contributing and equity the or nice loans this deposits at cost of XX retail at If putting with percentage XX% tangible comprising led total assets, of third $XXX our X%, higher per billion our balances we in just balances, the or $XXX XX commercial for loans. June ending the XX% the quarter book demand growth billion saw customer while total deposit this from June pricing commercial an at were assets by higher deposits June we branch just cover $XX.XX, ending servicing mortgage to the Despite demand loans We of March $XXX modeled. quarter. retail of value at in deposits CDs, the DDA start look were position acquisition. our consumer to or basis up driving X.XX%, were also acquisition, in DDA the business. relationships were up earning deposits share our at of DCB increase $XX.X Also remained higher included strong non-interest-bearing strong to that $X.X from look up and result, At capital of earnings March continue XX, the led we included we ratio XX% or thirds deposits. up product, deposits average and custodial points, in This if increased as loans duration of million a we've to growth. the branch deposits solid on balances, us common Certificates billion the XX, DCB levels as perform deposits in increased growth at shortly. million compound only expanded XX%. Again, deposits or were extension by XX%. a regulatory billion We over billion HFI to the slight Point-to-point, non-interest-bearing the million rose two $X.X a $X of growth betas quarter, balances, to or DCB
total Nonperforming There at were turn to nonperforming X.X%. while loans ratio no still down loans June from from Early accruing commercial down on X.X% stage the end quarter, HFI delinquent stronger the commercial of collateral. million delinquent the million warehouse is which because the and our nonperformers. $X over now loans over strong still to XX, allowance remains XX, accruing, delinquencies XX asset continue X.X% coverage consumer of and of loans, at were consumer at March coverage of commercial At Let's XX June loans, days loans X. Only no and coverage days even we This million dropped loans. XX% $X secured, commercial of and hold to fully prior be XX. is negligible. quarter, loan Slide $X are portfolio of X.X% in that $XX million was the quality loan were
robust. Turning capital Slide to remained XX,
basis X.XX% was growth of XX largely June balance full At our the ratio of sheet by leverage and proposal minimum had is offset ratio XX, leverage XX, from capitalized. of driven XXX basis the our well point a basis above Tier quarter earnings to at Our X resulting by X from last considered would seven the the points Tier down X level. of buffer, business points of impact the Tier basis leverage be When XXX level capital DCB acquisitions minimum buffer a average we to modest well-capitalized capital enacted, stress of warehouse capital quarter, expect June simplification in retention. excess branch points needed inclusion have
function, to over of which to risk with management leverage stellar risk-based and total quality of capital asset and continued the strong tax stress mortgage XX% With growth the a the increase low the which to a to have with weighting the well-capitalized liquidity coverage, XX risk the XXX XX%, loans, strong a to enacted, would for both level range signification for X ratio neutral ratio. add this X% weights we servicing for to When points basis leverage the over over rights level. risk buffer with roughly the our on and our levels, range target Tier capital commercial in just in it XXX%, risk-based rate XXX%, line of in risk robust in is above at total combined the term deferred stands XX% expect Considering combined minimum assets points typically now of ratio, leaving approximately its with long basis position risk regulations ratio. X the a continue the business, allowance Tier X% capital
level viable strong hold for operating capital by allowance would residential to and us return can even giving before risk-based profile both considerable mortgages constrained allowed ranges. they become of Being lower we make risk-weighted options regulatory the If other these appropriate lower would continue build end grow the be an of comfortable we more assets, total balance low-risk sheet. ratio, a more of expect currently our of coverage, to the amount Given and it do of in earning XXXX. the We for capital, a these of assets. level capital effectively provide capital end more lower on to assets
of approximately to build we capital half the remaining regulations In expect that the will we of retention the simplification addition from levels the earnings, of to for of and our tax continue NOL our adoption assets. proposed capital utilization deferred
significant FHLB net With held the insight pending also This more terminated on capital impact Wells to to of longer advances. recognized, Fargo currently businesses. this we branch When and acquisition, we provide as anticipate of each support that of to after-tax of we a times trigger and for reduce accumulated will proceeds term additional of portfolio income. turn Should use gains the million without in capital deferred these $XX will our I'll now increase hedges loans these other Lee net The recognition we approximately comprehensive is payout from the need, turn advances. amount can obligations our will acquisition. earnings. our for ratios to the flex down sale our the
