Slide X cover will Keith. through comments Thanks, XX. My
LHI the decreased Our decline earning from finance cut. reported in down assets first quarter, of in quarter liquidity. LIBOR points XX specifically from shift, to resulting anticipation rate a Traditional the basis related basis were mortgage the fed and the from basis XX NIM yields with points nine first points
quarter were the These lower compared the basis as one accounted but slightly only to quarter, point in the second for of first declines.
mix anticipated we've in past. year of growth and Our levels likely the of loan than remainder pace for in result fee will experienced the the lower
not increased which related down from volume as competitive volumes but Mortgage linked-quarter shift spread points basis income in non-interest component. revenue, The that decline to XX were positive very warehouse a pricing interest are was in pressures, includes net place. rather to yields well The a basis. resulted on any is already as
mortgage MCA XX which XX means actual rates points, the of linked-quarter hold which we We're of down since the the growth There was more lag generally deposit yields with is basis average days, basis see the were in as pleased as as will some very loans excess with well XXX and in down increase points year. with non-Interest-bearing. to we in expected recent reduction. interest-bearing first yield further total decline with XX
DDAs. XXX deposit first decrease to the from overall quarter. basis by quarter points decreased four Our XXX costs resulted points second in The basis basis points from good growth the in in
were traction. moved with will no [indiscernible] increases, up getting and previously move they with remained verticals the solid As of pipeline down deposits index just fed as discussed, flat a with the continued some there with deposit they rate decrease our
to later to in discuss the more We details year. able expect be
increase by million traditional surge During part quarter, expected did as $XXX the approximately mortgage of the we brokered second CDs in finance.
XXth. billion $X.X approximately June of total a have We at
ramp up, previously some of we when verticals than needed favorable communicated, more our we're higher pricing as CDs is brokered funding. cost As comfortable using while
to remainder basis small movement of in for the fed if moves expect the a year, the see points would NIM We July. XX in down
comments. LIBOR XX% direct those well, as moves NIM in over repricing the as offset effect have the will you after rates, more loan fed. ahead my LIBOR already a loan decreases move those fed of in Obviously, cut have discuss rate of yields would I'll LIBOR reacts move. linked how our As we're so experiencing detail on that as July deposits would as are a to the later know, been on side impacts
a had from leveraged LHI backfilled. runoff continues to C&I the loan during was reduction the We with high, some average In on LHI C&I decline as to that last and up slight and and The runoff would leverage payoffs expect year. in the the down CRE, contrast, continuing where this new to -- portfolio of down year. energy. being from up as level is well runoff X% quarter the pick in first average remainder fundings quarter primarily payoffs consistent our originations. balances traditional of in commitments in time Traditional leverage X% and with replace we're be during existing the We were not
lower We mix seasonally as year, quite We by was would with rate. the the strong about the and volumes with the QX average as had with non-interest-bearing. a in very quarter, even balances finance average stronger the deposits interest-bearing strong low rate. balances seasonality strong continued which We're with good well of from linked-quarter were total driven of total XX%. be up Average mortgage mortgage last to quarter expect second growth very pleased
quarter clients, see loan to from will in growth as account. of improvements the existing meaningful finance beneficial XXXX deepen well expect improvement verticals cost traction deposit some escrow to second existing from to is more that continue our in vertical including get relationship. mix continue would mortgage we more We with core evident with to started continue in be as funding. as marginal and contribution slower to Our We and
expense. non-interest to Moving
positive show in specifically to in trends operating salaries continue We expense. at the expenses, changes looking core
XXXX. a level of that benefits much second FTE we're salaries about up being opportunistic X% targeted We're at The managing areas. additions, quarter but lower and were still very QX from in employee in ensuring
variable As continues the a growth nature is certain portion category to tied be balances. of in marketing deposit and in reminder, a to
expect We discussed volumes QX increase, QX of $X.X previously was the are with QX remainder the be depending the flat $X expense year. expected million the on high-end QX. flat our from million be consistent range Those levels volume. level with of to fairly to and for to
had impairment million, first rate $X.X of non-run million non-interest The negatively of for the $X almost includes total $X.X quarter of of expenses impairment million total affecting MSR an second a expense MSR year. an quarter so and the
Our efficiency QX ratio for levels. QX with was XX.X%, is which consistent
the of year. for remainder the levels similar expect We
now Turning quality. to asset
X.XX% continue both were overall of discussed still the of and primarily to levels of positive charge-offs LHI. total credit first relatively deals the two level part We about be quality, increase the energy of in in non-accruals Charge-offs, Non-accrual quarter. to despite and related provisioning level at below a QX. higher are in
each to poor at asset characteristics, reserved common rest first the discussed adequately reserve position, of energy of challenges of quarter, quarter were realizable each While and indicative but unique by which other unique these liquidity credits along last worsened values were not the of driven our book. each needed. development market the end with additional additional resulted the results in believed information necessarily had We on
not category. to total was total to not classified deal Important was end experienced has mention, criticized substandard. note mentioned the which in related downgraded we expected uptick the in the or the primarily of special Additionally, quarter, been an in year increase the levels special criticized but in significant that to only second energy since one
for at we Our loans. problem have LHI, total X.X% action low criticized, as total a rigorous percentage plans of remains and
criticized loan we borrowers relationships, to client understand all For with dialogue ongoing have performance.
not general, of the that deterioration audits were point quarter third-party to throughout otherwise or revealed information the receipt new In known. further no would from was issues that
reserves with focused two provisioning The to As, of can quarter loans late some cycle, additional proactive limited and and for driven always on migration. by is million you needed $XX grading from the million related the million our were those early. know classifications we're in provision second $XX primarily history, energy and drive deals. energy $XX being higher two which especially
year remain a provision million than related two with mentioned, basis provision in half of a originally expected. larger the related deals. was points overall or line charge-offs QX energy positive that expected million to we XX guidance the we've the guidance. of second portion of with level provision Generally, second $XX for half first of that consistent different but quarter in category the we loan so in be the with to the is $XX the year, will As of
net contributed volumes finance revenue, linked-quarter to that strong in continue in see to mortgage the increase. strength We
is non-recurring $X.X The second $X.X future million amounts but a with quarter settlement, related first No quarter. consistent the to the includes in is also legal expected. income million non-interest which obviously are
had loans holding resulted additional loss some which the on MCA from spread offset a hedging is in cost income loans increases non-interest in and longer, sale We of income.
growth. in rate to Our core; X% X% prior-year run the to year-over-year non-interest to revenue on QX expenses compared continuing compared improve are expense increase net and non-interest
levels quarter ROA We and lower were negatively of some later the and liquidity the level higher in lift lower ROE second levels in a Our provision finance see year by higher provision ROE in levels the as the mortgage coming ROA levels. result were guidance. levels as than impacted could and
evaluating We for the opportunities are returns to long-term. constantly improve
strong outlook. are average head cycle. risk to [indiscernible] be people they're as our point decreasing versus previous on about the Looking mid- guidance high-single-digit. open from challenging XXXX about a we growth the maintaining are now could to opportunities what as We're to being for the the diligent to growth mid-single-digit very into LHI reward, right. franchise We're very slightly listening and market growing in our seeing We're if what in our traditional growth we're focused related to value
from mortgage expected percent. strong QX. takes growth finance, so increasing to if average additional happy into is year far the lowest the to Obviously, risk mid-XX% opportunities this rates, temporary available mortgage some even guidance high-teens our this On to us, of performance and the means metrics. with exploit low- for consideration dilution That we're we're our an to lower asset category it so
still from in will total increasing No experienced from XXXX. our for the growth guidance be the $X.X lower of high-single-digit the will believe of growth. average quarter. continue low-double-digit for flat slightly growth MCA guidance rate. The to but to MCA DDA of outstandings percent to should for deposits year We additional to our from to the That's second interest-bearing, volumes We're changes DDA average we that reflective be from up billion the most that compared benefit 'XX. from
continue decrease to guidance by The shift to X.XX%. a asset. our NIM decreasing X.XX% we assets experienced mortgage lower We're yielding X.XX% X.XX% the from we've primarily total to is earning which finance, to from and relatively was driven have for
punitive net to positive While NIM, growth slightly is the added very revenue. to
XXXX. for assumes in rates As always, our guidance fed changes no
impact impact estimate will over income. and than believe income XXXX. us would However, how in a focused to we XX it's little point XX rate remainder with of in months the the it July, basis for the impact important terms next move we understand cuts less to we're on X.X% of be With
Assuming impact XX September, that July moves XX XX to X% points and to XX with basis in in X%. months
and growth Finally, we've assumed assuming than take the additional in closer be also to of consideration X%. which to of July already in these XX in points is for other basis forward. remainder going With finance we take mortgage the dry assumptions could September, XXXX, economy the XX stimulus impact into might those any change consideration into X% the scenarios core this don't none to could up, volumes
initiatives better Lastly, this already our the mix during funding full underway of that XXXX. position doesn't have impact
for for at percent remains mid-to million high-$XX expense, a revenue level. provision growth. -- same guidance high at The net guidance Our constant for remains which high-single-digit
expense increasing from high-single-digit previous growth. to the for growth mid-single-digit percent We're mid-single-digit our slightly non-interest percent to guidance
good the variable the on the year of We continue expenses, slowing cost MSR half driven in of of impact range. pressure first marketing core more to upward the has feel well very about as the that operating some charges our of as but impairment
remains ratio the efficiency for guidance low-XXs. at Our
these turning which our kicking of in long-term our outlook, Finally, planning to part we three-year longer-term third to process, them validating and be is committed quarter. we'll are as the goals off
in our on more stable a As you place to balance rate cycle. are initiatives know, sheet we through the focused be have repositioning
success targets Keith? different these and the been committed and, we successful at underway there have the them. repositioning but Certainly are as variability the in needed and achieving to right historically, same very can confident cycle, this we're right initiatives We're we the be have time. at points expect
