I'm Thanks, morning, and about Terry, everybody. good to PPP this talk quarter. more going
can understand how quarter were you our impacted. so important, it's results think we second better believe I
for Excluding our PPP EOP results a quarter. from our balances loans the reduction million in in $XX
in last about $XXX million line we As quarter, increases. Terry had mentioned, commercial draw
course, We land loan mid-single were lenders recent quarter, market for and year, line at to PPP. after commercial still but the of the Loans excluding slower the by is will in of leaders This memory. remember discussions are there based lowest believe XX.X%, digits impact can million. coming with $XXX Line draws in down in opportunities. low growth that draws I this at annualized our on were which a are pace,
conservative, in yet. third the anticipating we PPP loan good we're quarter. forward, be don't looking balances reduction forgiveness to in any but may not That As have rules
second see. So to the running The they Average we'll told that have to quarter. $X.X August, quarter. just balances forgiveness that's portal SBA made and decision PPP we've have was the for by Congress for loans the third in their hope billion up
Our third average quarter loans PPP for $X.X is billion. slightly more forecast than
Our second yield was in X.XX% on quarter. PPP loans the
on quarter third fourth paydown PPP We're reductions quarter. loans in the fairly our assumptions. principal in consistent forecasting So should note be based the
Our and income anticipate will PPP our quarter, that forgiveness million fourth $XX XX% then third likely in we fourth meaningful the internal XX% forecast given will in our in that quarter. into in quarter the PPP the fees guests get amortize of
deposits. to Now
billion quarter that growth over deposits As We're amount in huge there deposits. information between March deposit number. number quarter characterizes core June There's precise quarter PPP growth mentioned, the deposit rough a End-of-period program deposits estimating simply That deposits anticipate of up estimate is growth and were and result let part PPP levels to We same our about This growth This a the XX% of to on Significant return the as over the those decrease XX. in meaningful Wholesale for our the almost these second toward our that of a determine a because net $X.X XX%, quarter. a noninterest-bearing billion. growth months. the some billion at our In in in wholesale next for borrower’s contingent supplemental the provided more use all for impossible deposits was to are March a $X.X and the liquidity and and we off rest while is were balance wholesale billion of COVID was intend progress the likelihood, COVID. quarters will the sheet vaccine. up XX funds. client the over move as acquired liquidity obviously amp as deposits PPP of in borrowers deposits see these quarters, we'll fourth split of $X is The so to traditional XX. chart do loans us. ending Terry third practically our up next it's that XX few all decision deposits. $X.X growth deposits in
Next loan is to usual update the pricing. our
up very points the circumstances, second quarter. average basis points to about the will the spreads basis how quarter. XX-day the be XX pleased X.X% quarter held loan when and in with have to first third LIBOR the likely in XX That XX fell consider in Given you
success. Our with spreads are to relationship and finding increase LIBOR are borrowers managers working
tough, quarter As to of noted new on prime more loan book. more successful at achieving entire compared were handle on X.XX% portfolio. these in a the our credits, Prime-based the credit trying slide, is rates and and basically on the loans to hanging fore getting second LIBOR X.XX% keep floors for LIBOR LIBOR
occurring, we're new excited also a X.XX%. new minute. loans of book fixed rate fixed are lending on see the Fixed around come around in is at quarter giving some rate second in up tough yield we that loans X% that total more in yield on a with as So rate to hanging
for At contraction in rate $X.X environment in LIBOR the XX, where We at and June had that this is having right pretty some is from a floors. we're the success in number Offsetting the floor, us now, given of third loan the up experience yields is we XX. variable two yield loan difficult be PPP March loan billion and shorter-term with in items uncertainty will $X.X billion credit these PPP around quarter, loans. covered. given impact should loan Forecasting
have doesn't a variable have renewal floor for in We rate between million yet. up also now loan comes that $XXX that year-end and shorter-term credit XXXX
chart, of the betas not like range other big points One great we in obviously and we deposit our not XX We opportunities it we as time big spend I'm work a thing should loan XXXX we as last the of focus that us into ramp into said, XXXX seems prime deposit XXXX yield by reason into That cost. way to deposit a This year. managing we targeting for no discussing LIBOR this costs is than loan so to and to build total ramp as be books, new and basis deal our or deposit through floors curve. going not our XX is will funding on we do is less have building see flatter year-end. of a pricing. longer our for lower doing can obviously help
who relationship higher depositors at them managers client are pricing. Our with and have have deposit list working aimed their
CD balances, reduce in in will the of half second wholesale We costs. billion both gradually have of will renewals approximately funding serve we be funding year, which the our and $X reducing to
all going last back our not to covered. in we've tracks in rate know from top NIM much to funds before. bringing time rates. lot of already target spend relation and left a of to we're quarter forward zero environment information we've the chart goes XXXX a information The this Fed We Now this as operated quarter, NIM the I'm on
so again. the left we go pleased here environment, won't the are this years seven are information last floors we did we critical last time. with So on Obviously, where like chart. Hopefully, it for bottom with loan it are in
net a and press mentioned basis negatively PPP slide both number, we these our As meaningfully. NIM how There's release we night, information last impacted that by liquidity two calculated but the reported that supplemental margin our believe a suffice that have shows our we XX interest to events our excess say impacted points. in in
optimistic we're results. the quarter quarter, PPP GAAP our steady that the on to be somewhat fairly margin and Looking third will third hold dependent
reduction the loan that, to third down will in have reduce amount helpful. obviously We a pricing. deposit quarter by floors in liquidity, the and should a hopefully, be Average with build-in modest will LIBOR so be too, counterpunch
investment today back I'll where carried Consistent were arrears with of are for as were underestimated market from performance. same see second fee to million, quarter more other revenues growth from anticipating and on down this than BHG institutions, are rebound these calculation quarter, this has are been BHG brief. out Wealth before. a BHG $XX $XX.X in revenues which received be last than mortgage results reflects quarter, with really huge more on last quarter We a slightly occurred. based over we should come it's primarily more Now based during broader financial but strong fees currently, revenues million the but third up the the and on quarter, market fee quarter. approximately refinance we've in and was repeat we income. of Taking really quarter slightly advisory the are anticipated, their a in the a last group that second. services These contributed significant year. QX for the but management pipelines quarter
$XXX,XXX on and over is cost, from briefly have this We benefit PPP million Personnel reduced time quarter. So up exact were expenses. an now quarter to quarter down overtime due costs. about the over costs last for $X don't number but prior reduced incentives
As the in unemployment speculate medical also reduction portion procedures taxes expenses being benefit to of the to sidelined Consistent due contributed elected for payroll so. caused benefit that down prior with maybe cost. several some and the the are quarter, usual reduced years,
in $X earnings savings, As as another expense million and being incentive million for things $X $XX I to we about. for other are both to around really anticipate savings haven't in not this entertainment, year. equity from travel, to $XX achieved have cash COVID-related savings million probably incentives We and reimbursement thought million that
Our cash reduction $X million to resulted quarter year. in at incentive costs incentive in accrual was XX% million This this end. $X at
driving this is annual incentive based you As plan, our targets. we year, incentive the a into our that of for is associates. deposit many adopted EPS component know, cash accrual component our for incentive on growth and And deposit
year-end. energized DOA, performance going is year, for our absent operating target additional the between associates end motivated so that With to we our working the XX% can with this opportunity keep incentive up some targeting to provisioning the We're our firm EPS target incentive. into We're them some remarkable and likely incremental of of to Board and additional now highly be XXXX. ramp an provide
quarter. We we another component. XX% So a of time. CECL of their annual this this target spent time time anticipated last of lot build We it, would in incentive deposit quarter, the on last so call have inclusive reserve we be total, that brief will
our X.XX%, from at without mentioned, PPP Terry up quarter. last X.XX% reserve As is loans
to is forecasts. the And some recently. this sheet at regarding most. that Unemployment last our additional average know, large-cap We to as least building $X.X probably that the impactful, two influence published information We most the comparing are model our million green quarter in our our line. we've firm you the These expense can the rates CECL noninterest included to in being rates that also off-balance compared metrics and unemployment used you increased weighted quarter see unemployment one figures GDP that reserve. chart
XXXX theirs, are weighted slightly Our XQ our rates higher. than definitely XQ weighted average rates average are XXXX but lower
and less. $XX reserves another duration have in this the of to the quarter, as allocated So apples-to-apples, around through exists. in reserve last rates Over that that, all would a just added and pandemic result uncertainty slightly the qualitative we more above a the of quarter million unemployment we overlay depth due
big about XX to will work the loan believe, as U.S. and group just of a book borrowers all will gradually XQ, duration assistance that The an with steps are is will in feel and themselves the and uncertainties amount bank Two don't over visibility we own positive. know At leading weird through. for the to we're lot learned in to some think course, more through. Treasury Both we pandemic. loss likely There's negative our depth As quarter our portfolio us that a additional Every of and a are their I Pinnacle, effort more we've working September those, of deferrals we content. in Tim's governmental of difficult about at the provide it's all predict. is, spot. is lot today, but know gain last better obviously
right reserves year half of that we Our in is visibility the the until improves. build guess now to will best continue second
guarantees, environment, It's Lastly, this we're of strong awful we can a influence were growth general will core into said, lower slide as PPP significant few going more optimistic and is cost. be we growth quarter. March. optimistic for next are deposit we've That addresses quarters. spreads No about that beginning increase to we in as soft, ever experienced. think the the third loan what deposit rate our likely things but have on is an loan we results the bank than at
we third Not will of on should guidance have the – All we be anticipating relatively due great impact half in still confidence credit. As things to in willing in will have and to not which COVID full second discuss but another stable, to feel year. mortgage a record, PPNR BHG a considered, increase the and to its year offer confident Expenses should fee, I set quarter. minute. solid they
equity. tangible about briefly Now
manage and are balance and this low and assets first Xs next We Our high-quality exit ratio sheet. will Xs quarter PPP. will year-end that into eventually the into the by liquidity our These quarter believe additional high we dropped year. of back with build the the
this BHG, of ramped flows business before they're green holding you to time As chart snapshot are with on the shown and originations and up over and give BHG's we've up being to intended have The loans the a pandemic. importantly, bars how during slide it's more more funded.
remain business strong. So flows
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Again, of to has loans from I to prepared offer I strong, occasions, right top years, levels. improved business improving of the steadily have the XXXX. last loan next the in to few – And healthy. incredibly powerful related originations at maybe shown but They chart, continue flows on the is borrowers chart and to particularly quality and the are Loan quality. BHG's sales record reiterate, execute we've BHG most refine left base. XX,XXX within in increase scorecards The their few the the credit steadily the borrowing feet several on first in business weeks. remain – So quality first chart, remain BHG's securitization its
losses opportunities these will a losses earlier at thus investors but our just underlying to events ago, towards Concerning in vintage, lower upward, evaluate opinion, quality the to percentage Pandemic-related Looking origination, over years securitizations. of believe out impressive in is cause loans. months the life likely better base, higher point since lines deferrals. borrowing and much respect loss by has to upcoming the level is with the continue few pointing of the in participating their bars from and very the helped I than a
essentially meaningfully sold XX% communicates outstanding see almost currently. these June as lead reserve for XX, a shows These of XX% quarter, total frequently chart that as continued of the As the percentage credit The rate, while dentists accrual rate. are loans in that BHG historical and green line expected, network XX% from time has deferral look charge-off this about details loans who $X.X with book, of these their nonexistent borrowers to banks. We've banks. up The BHG the annual quarter deferrals total of in blue the billion represented deferral shows numbers with group these updated with decrease with loss last loans. line and request third the on to other the banks a bar acquired got bills. their as community recourse they've orange the currently, are
quarter running They X.X% For some picked and building going from recourse this this the XX. months anticipate to reserve XXXX. half second accrual last of quarter. the were about three six first X.XX% months into X.X% ended XXXX, on June of additional at We losses X.XX% only the have for increased slightly up to again their
it's for and Lastly, we BHG, year. we big things anticipate been of the rest big believe year for this a
on on securitization income preferred in diversify was execute to credit potentially in on improved, their sales More priced in six the to a the third will This we'll stream its to their this funding a BHG markets the next spot the first execute securitization BHG the good revenue interest BHG quarter. so. to to – and another from $XXX During Pinnacle months away on come the allows in very markets another provide in successful competitively We quarter, million or believe source. We continue gain get successful them with opportunity accessing that June. securitization. and the issuance allowed and credit in be
They feels now, one. hitting on be to New indicated Best so number also named Congratulations that were on mark. year, to number BHG two Place the BHG as slide, was last good York. the it of Work in to Lastly, state the
a years Place little they friends now was is XXX-plus York I three sleepy turned to suppose a they have have state upstate replicate XX special driven New New in that company here associate but ago, Work the many started York. BHG. it into to of built, that a firm there's what sauce tried So the Best at
excited of BHG's And the and with our to talk future are over credit. fans partnership. that, biggest turn We about I'll about to it are Tim
