XX. Dominic. metrics on with quality Slide our Thank I'll start you, asset
from X.X% end. total as December as million $X.X assets X.X% of XXst. essentially total million $X.X as from $XXX XXst basis up were XXst of assets loans or Nonperforming criticized loans billion Quarter-over-quarter, year as down XXst. of December from points XX were March of million, loans, of of unchanged as $XXX of March to or XXst, loans. million Classified total December basis as of mention to loans of assets million points XXst Our of decreased billion million or March of special or increased as total with $XXX XX $XXX compared $XXX $XXX
loans loan graded single of XXXX, first to On record this any to portfolio as losses. and as exposures quarter absorb was backdrop Furthermore, the systemic new in as allowance build the performing criticized loan loans in issues loan incremental loan needed our the XX, million not sector concentration our reserve largest our we operating for components adversely and into March of our that is oil limited, year. migration at do allowance in stable and portfolio. well for present we the is gas for for expect quarter-over-quarter. see losses resulting Outside believe do the of sufficient improving. provision to losses be for for loan loan New We losses gas, the our Oil assets, in of not Slide $XXX we continue in growth. remainder XX,
reflects with compared PPP, day March of of forecast. or The of losses and largely X.XX% X.XX% one CECL. investment in December in $XXX compared $XX the with million fourth an on allowance X.XX% post quarter Our excluding million or improved the with million first reduction for allowance as loan loans $XX totaled macroeconomic $XXX Net the $XXX for XXst compared XXst were quarter-over-quarter quarter. charge-offs in as held or million million
net was real estate quarter X of primarily points the The This ratio loans of average commercial reflects decrease first improvement charge-off fourth in charge-offs. XXXX. of a from points quarter basis basis annualized, XX improvement an
key Slide discussion line in During statement to to the of XX. following losses now in which for the a quarter. slides. million fourth I first compared quarter, provision of items slide income And the the summarizes statement, will in no This detail $XX more we on the discuss recorded loan moving income our
$XX.X with income quarter. quarter and rate and million XX% was million First $XX tax expense the effective tax XX% for fourth compared was
tax a tax expense Also, DC income of balance items to interest investments investments. quarter our compared reflect growth. the tax on Solar net average $X effective fourth drivers quarter. with I'll XX, prior margin discrete rate and income starting expense million credit amount key quarter interest review of the credit net and of Slides included related First XX through the income tax sheet with tax now and benefit higher
growth quarter First broad $XX.X strongest from growth annualized. loan $X quarter the fourth or the loans accelerated was billion average quarter linked and grew residential The rate mortgage. across categories, major the of by from XX% based billion
bearing deposits rate quarter grew of XX% $X.X of annualized. All XX% a in to grew at annualized. noninterest average or $XX.X quarter First categories deposits demand linked billion by by led growth billion deposit
from ratio XX% first quarter. deposit the down the strong growth, in fourth loan was in deposit the quarter, our XX% to With average
repo quarter, available average a $XXX we During $X.X billion basis, and first increased securities assets. repo million. deployed AFS for by cash by securities into also some sale the and increased On assets quarterly debt
an During mature, to the funding pay expect which interest carry of effective we $XXX XXXX, of off. rate FHLB million of second our X.XX% quarter will
XX. Slide to Turning
of X.XX%, net interest basis XXXX of prior the and quarter grew from quarter net the was million $XXX X income margin First decrease annualized, quarter. interest linked X% by a points
of income related X% interest million net loans quarter. adjusted quarter Net in annualized. first million grew quarter our was interest loans, by the $XXX to with income fourth $XX quarter PPP to the related first PPP in million income Excluding linked compared $XX
million cost As funding basis XXst, PPP from breaks plus mix of of basis from quarter and deferred deposit minus offset more by as basis deposits, down X we income. accrete GAAP lower the $XX X a in points from strong the DDA from due March points plus to minus interest-bearing excess points basis lower into of liquidity in fees the quarter-over-quarter loan basis points follows: NIM yields decrease growth. X had X The first loan points to X
XX. Turning to Slide
points X.XX%, of impact down First was portfolio. average loan low the the rates from excluding by and X.XX%, quarter-over-quarter impact adjusted reflecting X.XX% loan the interest of was on PPP, quarter yield basis loss X the
XX. Turning to Slide
Our current as higher maturing of market rates. priced to repriced to decline deposits cost continued CDs
XX fourth for XX, the to from XX basis points was quarter cost first rate dropped average down deposits deposits quarter. in XX points. basis of of March basis total the Our The of as spot XXXX points,
first the basis points, was repricing XX March well as market the CDs average cost The The was of primarily Our by deposits basis decrease first was rate a a of quarter. points, weighted drop a the basis basis as fourth of XX by at accounts. quarter-over-quarter a term to the interest of cost quarter originated of points in XX points CDs XX renewed The months. of bearing XX of XX quarter, improvement driven domestic deposits CDs billion average from first of In XX or and basis blended quarter we average XXst dropped as spot in the rate money interest-bearing the cost down in of of US points four in points. from basis fourth basis $X.X meaningful points quarter.
a at $XXX CDs third and $XXX another second have in quarter million We rate of quarter basis points blended XX of million basis at maturing points. blended the the in XX a rate of
the up income fee to quarter. quarter on noninterest $XX fourth Moving Total $XX in in was the XX. from million on million, first income Slide
year. derivative transaction term increase interest in interest interest an income contracts revenue the income to increase exchange million, from rate outlook. full in improved lines is deposit other in we environment. the fee on demand valuation these business in management for First fees quarter-over-quarter business The favorable quarter. annualized of sales fourth volume and income, quarter, by due the the contracts credit Fee long strength benchmark for these show lower quarter gains The in $XX reflected lines. momentum the customer and and wealth reflects in reflected XX% growth rate and loans rates macroeconomic were adjustment a expect customer growing into net decline and current account second continuing driven Higher the the change forward and income growth transactions to
to XX. Moving on Slide
expense was $XXX noninterest quarter million. First
offset of other million operating amortization deposit and quarter, the decrease intangible and in credits adjusted expenses. payroll tax payroll of increased quarter higher expenses Year-over-year, Reductions was and first core a the than quarter-over-quarter. to in expense noninterest which other [X%]. investments noninterest first taxes increased Excluding in expense is related overall adjusted $X.X amortization, compensation employee by more million benefit typically and expense, due $XXX
adjusted in quarter XX.X% ratio The XX.X% efficiency first quarter. compared the was with fourth
that, related has review rates. quarters, Slide and I'll for XX. efficiency Over XX.X% slowdown headwinds with our our year the on zero COVID the from now from past XX.X% updated outlook interest operating to despite five And near full ratio ranged XXXX pandemic economic
approximately the full X%. growth, to end adjusted the XXXX full narrowing loan our XXXX net For year X%, year will In prior driven X% will income primarily upper to of year that of growth be be to growth current our excluding for in the loan Year-over-year by interest basis. we rate of PPP, expect compared are on income year-over-year interest net results, will excluding with PPP full environment, growth, line we which on interest loan growth generally a assumptions Adjusted our focused be expense our to rate of curve. X% narrowing X% bank. range X%. upper growth, investment This change the of excluding tax Underpinning forward amortization of interest current to noninterest income credit our year-over-year prior computer interest is the and Compensation in previously capitalized update revenue the parallels loan of expense expense and to software we production the loan largely amortization growth our compensation growth growth reflect as and will end outlook amortize year. higher for investments. expense reflects technology range
provision for updated losses pre compared outlook revenue provision loan XXXX income XXXX. full add and improving credit operating for to to year not to to Our expectations. higher expense modestly compared expect on prior we stable for also loan growth for see growth the to our Based we outlook, leverage macroeconomic forecast expect that would translates pretax I to our for do year. the
credit the prior placed of outlook. investments, to due to With now will I'll impact variability quarterly XX%, tax in for remarks. of be Finally, tax rate approximately the from timing the the rate call unchanged investments There full of Dominic tax service. tax credit closing effective year XXXX that, including into back turn my
