Charles. you, Thank
the available in with the As morning. is later our custom, for Charles, will our Jan Williams, us this line be and Chief also on questions. Officer, is Credit Jan I call
economic on social the way stress community time D.C. especially COVID-XX caused community here thoughts Before this the significant, our pandemic. those we hope the causing of and I would Washington, The for on results, during change the impact of by I and like to live begin business. to been discussion has and Metropolitan extend our our employees conduct financial the of and our our call, us of customers Area in health, aspects and all
are we employees. maintaining safe relationship-first to the a customers committed providing are known we environment for, for excellent service However, and our while
of We are define communities equally committed we as to the supporter work to our all as normal. new our local a role together
of our quarter The earnings as second XX.XX%. top improved tangible quality and efficiency the XX% average level increase XXXX million. earnings $XX.X above X.XX%, first quarter over and and a strong, common of in quality of return on of on group a average we averages the return assets resulted believe equity remains were quarter profitability peer on growth growth of financial credit X.XX%, loans the common quarter by maintenance That for challenging. The evening quarter environment. 'XX. to was compared our both quarter were million last million share second million of a basic was The unusual ago. environment pandemic operating quarter fully XXXX The the all the for $X.XX as second full $XX.X year second to was income Both the as company and XXXX in reported diluted of the factors, net of earnings second we COVID-XX for of net and income, primarily and second the and by quarter represented equity second and deposits, driven for leverage. first well. measures return in Considering $XX.X $X.XX performed income results compared both of $XX.X revenue a feel average noninterest per average the in operating of results quarter we in a The line
Protection in by during interest margin a to our March Reserve by net Program. by our decline on Payroll the in was we in the However, actions the liquidity the interest abundance lower which the rates the balance substantially during of due quarter did the Federal see quarter, sheet impacted and participation of
XXXX, to second the compared grew quarter as the of total XXXX. revenue For X% quarter second by
XX.XX% increased quarter first improvement in only over same to the of in XXXX gains the period, of for as over and XX.XX% of primarily XX.XX% in ratio XXXX from The expenses quarter of second fees was noninterest the increased noninterest and XXXX. the the X%. of the second quarter XXXX efficiency While XX-month about compared and quarter growth second loans levels significant generated expense. modest noninterest of sale was due income primarily to The
our second to noninterest to second higher this to quarter operating from XX.XX% strong XX.XX% legal our the to expenses improved attention of profitability quarter a continuing quarter ratio was Compared first in the expenses. Our it lesser revenue traditionally leverage efficiency factor our with growth combined both revenue XXXX, of and year. of for due been has lower certainly noninterest with growth key and
We that pleased a in growth million the income in a a mortgages; $X.X to of second XXX% quarter, FHA increase and $X.X quarter of gains on XX% a increase of million for as fees of -- the XXXX in increase The million of the the $XX.X was report over servicing and securitization, the over is income. noninterest loans; higher are the XXXX. XXXX from quarter -- SBIC included of sale million to the increase increase $X first million second and $X.X level sale quarter residential SBA compared which
As we we have low across seen has interest capitalized created tremendous and for the that. have demand the refi environment rate industry, mortgages, on
this in quarter the $XXX year million and million quarter of closed division second the loans XXXX. compared second quarter in of $XXX as XXXX of to $XXX mortgage residential of in Our the million first
by FHA during We are the our with the success division achieved quarter. particularly pleased
The benefits. saw by of achieves recognized loan transactions core under part financed. small of and of growth size Reinvestment the originally permanent balance Community the XX% loans investment quarter investment of projects, quarter construction various growth division the second discussed XX% or in business quarter that increased bank X% FHA but FHA we average average to We in continued take borrower lumpy, second of over this a CARES loan as as the mortgage residential with transactions Protection over the was compared like which loan was well have mezzanine Paycheck smaller previously, loan mix of of from were where the to almost the is we year. refinance as XXXX Act to of quarter the Act transactions the the tends smooth refinanced we our quarter the generated financing during first in allow loan rate the loan which March stream XXXX. as lower during trend to the straight, income out of the The also financing Program, not at for the to bridge the balance small the from About high-volume to loans had division. of a the be irregular, pleased authorized quarter-to-quarter from business regulatory from as As revenue were business the due for Congress was was the the
businesses balance both to decrease As the in over the were program. reported had was PPP loans, a We COVID-XX earlier, tied that $XXX in X,XXX as pandemic million PPP $XXX under signs the we drawn businesses the was loans income-producing CRE more the June C&I The in loans loan, just abundance believe loan advances of $XXX than net Decreases seen end we of in quarter. caution million to loans million during concerns. activity at was of an approved and loan almost XX. Other of credit initially of lines to impacted of as largely at C&I the the the began decline environment. were March COVID-XX by by show portfolio business of portfolio new repayments many
credit bringing selective new in the cycle. see demand marketplace, being We but relationships in in continue portfolio the very are some point economic to and at this the into
teams relationships. their time, are lending most Our tending nurturing and spending of existing
period. we for we deposits because more discussed times on our than mentioned average capacity more average for balances balances aligned press and release As many with the the end-of-period in earnings on earnings is these calls, the closely focus have balances any
The experience shows during at end-of-period demonstrates analysis the $XXX quarter of really the second Our $X.X XX. with of that. balance in June billion deposits decrease million quarter a during a point-to-point
deposits. billion, average deposit second the of first billion occurred increased However, of XX% This increase over were created the and last quarter average X liquidity and quarter the of balance of likely into the $XXX which the balances XXXX much or amount over or the in disparity XXXX, for period-end comprised bank remained that of withdrawn we quarter quarter out recovered XX%, the decisions we in in plus part, the of bank an moved of between second and flow the was changes policy second believe XXXX. the gains Federal balance average attribute the million to of deposit increase quarters. balances deposit strongly over of the $X.X XX% which for the the of quarter the large system In quarter, the first the is deposit late banking Reserve by changes quarter June XXXX result in $X.X stock market and second as in
the because law have these with benefit companies. asset strong and We customer of managers, relationships firms our intermediaries, of financial deposits title
the However, in balance this balance. the average case, for quarter fluctuate. these the higher end significantly deposit do period balances And was than
in portion of On our decline loan during during balance we the X attributable decreased attributable average quarter rate, points with that in of against or rate X-month yield XX% quarter. in market loan the majority which quarter. during us on some is the floors, significant point points is second loan to basis June adjustable further the the protection total XXX declines the about the which dropped interest of portfolio sheet, asset XX, low-yielding LIBOR average yields. the conditions, decrease basis had At gives loans. loans its to side PPP XXXX, The basis earning of variable a saw XX the yields rest The assets basis the yields points portfolio loan feel XX in
ratio we the substantial mortgage-backed in loan the quarter In XX%, of in was yields, returns the average of XXXX which feel to portfolio drop addition impacted is the quarter. The by of the second prepayments the in was the is low at for range prudent. loan-to-deposit negatively end securities securities
a favorable quarter, of which ratio quarter of the XX.XX% the to The certainly for margin. in efficiency quarter continue benefits of first deposits maintain demand XXXX. deposits compared at XX.XX% of to in We to XX% improved XX.XX% very level the the and XXXX as average second
of the expenses. quarter consistent the XXXX quarter with combined mentioned, to leverage, focus income on a improvement second the noninterest noninterest was our to earlier reduction in in first increase due As both compared operating in the as with
more for resignation class incurred The disclosed agency accrual For the government reasonable quarter, Chairman former action expenses investigation and level a are and ongoing. legal the lawsuit CEO. a of expenses and previously to our related reduced we of
second were against certain items on claim However, recovered lower associated expensed we and in subsided, previous subpoena quarter expenses years. for defense testimony in the insurance and as the costs production an otherwise
in above keeping IT the continually while the expenses other all capital human need and our billion $XX requirements, of management and to we mind infrastructure our which that the regulatory disciplined are hover our effective maintaining as asset are evaluate level. We improve to near additional size
We to from pandemic pleased has functions. Officer, succeeds us new have Chief where bank Pepper, in Since extensive had constantly with in are on of joins in acceleration Officer, very and who risk we Kooker, to new Risk Jeff our clients the many adviser and our was been the our X Susan additions executive Operating COVID-XX we to in New that reaching who management compliance he Curry, retired an April. Jeff mid-March, in Deloitte, the Midwest is banks team. Sam Chief the borrower experience point, negotiate community loan management manageable June, England. out to portfolio feel support XX% borrowing loan this have the the each but quality where totaling Through our on the that monitor and depending to or appropriate, will portfolio. and risk credit economic XXXX, We approximately the billion our downturn. approved adjust payment is on at deterioration -- assist duration the $X.XX XX, XXX offer modification. potential severity we to the level continue deferral customers assessments and of of and assess June of loans of
reacting Administration, quarter loan million for of end X.XX% a accounting XX X.XX% These U.S. losses levels the reviewing to points fully accordingly. guaranteed XXXX. environment, the have at at both Business end has XXXX. compared XXX% $XXX a for XX, $XX.X impairment as allowance bank status. been individual the At statistics, XX, ratio June the taken we credit ratio in at XXXX, allowance from points. million the X.XX% XXXX, loans derived million using The commercial XXXX, X second that with as at has first loans loans given to modest the were the -- XXXX. quarter June have the for of quarter The $XX.X United loans some allowance aggressive quarter XX, to was basis and industry. economic June quarter, services to and allowance at provided X.XX% in loans XXXX, which of XX, been second basis June and we at The has are reserves of and the of an compared compared X.XX% PPP were nonperforming to points standards. XX, of XX, XXXX. in as XXX% as -- of compared March June current The increased by approach $XX.X consistently of total Small in new and CECL level in are the by first average assets basis coverage XX, NPAs the the those quality charge-offs March of absolute million approximately of basis XXXX, for was accrual was the at of the were personal the of as from XX total net to quarter and the points the Annualized has consistent percentage States XXXX. During primarily charge-offs quarter June saw XXXX diluted X second At No uptick relationship in second NPAs X loans
of XX.X% the from and Given that period about the Statistics Metropolitan of recent Labor our Institute about the the through service how pandemic Area, industries. economy the Fuller base. monitor continue of our customer or March COVID-XX we to base. region food Most will the the May, and Bureau were the closings Washington, uncertainty and about lost D.C. accommodation The reports and most XXX,XXX the jobs long lost the of during employment indicate jobs business in impact
about to of continue that loan closely exposure the which XX% at was will sector, -- June we XX. our portfolio So to monitor XX%
about of loans. total exposure X% Our to the sector retail is
certainly had on the the statement, income resilient. pandemic While remains we balance has COVID-XX our feel an impact sheet
of The Tier again at Our activity. XX was to ratio result as XX.XX% respectively. the end second average total was June XX.XX% to to the position in at XX.XX% assets June capital strong and XXXX, or at XX, the largely was the ratio of X ago and share XX.XX% was Tier the ratio The compared capital X a leverage year assets repurchase of as risk-based capital average capital reduction quarter. ratio
the areas well remain Our in both across capital resurgence policy of many, measures our of we and several internal regulatory Like excess ratios country. levels. are recent of concerned COVID-XX about
However, optimistic we strength the the of remain cautiously economy. about regional
remarks. While employees positioned why we and take profitability through feel this be balance sheet, This we well work my pleased environment. today's dedicated are that, challenging our our at continued are monitor concludes questions continually would we customer-focused formal We strong any to time. to
