Terry. morning, Thanks, Good everybody.
noninterest-bearing optimism the performed quarter, added deposits those strong giving for with Another growth. year. also were additional the quarter us be balances We pleased of where our about deposit might during how
high can double of the single grow XXXX the remainder rate to growth, digits the year. deposit latest for FOMC year. range this we our will of believing to projections meeting within low impact previous still As deposits Obviously, the
time As rates Today, our XX% a X%. less of than more result, had are taken are deposits. than X the ago, MMAs our years only our looking markets we've rates less of today, at at rates back X%. on than money X%. Also XXX% XX% of book greater
we priced very that feel So our deposits competitively. are
in reciprocal as We strikes some made reducing a as our expensive well deep preemptive some of of successfully dive have late accounts deposits. here the more our on quarter, pool
to as outlook we helpful second the our enter is effort quarter. This
accounts our around X.XX%. in lenders first was average rate new to to added As onboarding the quarter, the
markets. as to our position As our we we've in deposit rates said, like
be So few will I've a that large conference by for sort creep some future. particularly acknowledged believe late, calls they've not spreads near know of people as benefit any here, may rates from caps us, increase. deposit and slow to outsized of the listened likely deposit in going are more a away like letting rapid be
into the anticipated. did a deposit which quarter, rates our it increase we quarter, came head for fixed believe still basis like We but we for may a us as lot. good points, spreads, be won't spreads continue some it, impacted that to on particularly we payoffs large and SOFR XX% a put come slightly X% feel the along few loan be believe in we prime to balances, year, and than growth. less credit we are second said, have nicely. Loans That EOP in growers rate will job are price the outside call for Still late doing
are of loan our around over in an X.XX%. call our keys rate yield average repricing books, of flows of financial it, loans. fixed which One plan We're our remainder XXXX billion come with, $X the to expecting to about from is cash scheduled the fixed-rate in
loans originated have as job to the opportunity of renewals are are with X.X% important the to second doing think the in far a X.XX% the in as concerned, XXXX net happens I income in most given as lot quarter it and our influence second we this quarter, target interest fixed and for initiative success growth quarter seeing the And great rate to a around we X%. new of to As averaged quarter. is looking first here of a RMs what forward is
growth with loan go on the interest good we will to for long a targets, our Our income about, way our outlook efforts fixed year. net rate repricing hitting coupled which feel
we X We We modified to in year year, were our November. some feel rate that NIM data, the XXXX. contraction likely volatility said, quarter in the X would We did feel X said forecast that second as we quarter. to the September we in after X in see will X quarters given the in and We see that happening fewer current until cuts this decide in happen the seem outlook cuts our happen see margin confident no-rate-cut neutral point of this through at could later margin That like rate trend expansion time the with the scenario curve X of We as not and no the this is short we year. interest to from will to X.XX%. on we point. expansion of at that the the X.XX% move end last optimistic the
to the steepen. expect, might of curve As see part like to intermediate we continue you would the just
our our reliability in sensitive where Considering longer respond XX, [ RMs is their So as of probably will rise March higher environments modeling margin asset-sensitive might sort to term deposit you but typically helpful, over is well somewhat balance potentially and interest or sheet longer technical likely net income squeeze for time. we initially and rates the these ]. ask as clients PNFP think how
press credit, for nonperforming again fourth during quarter we're As traditional the one presenting metrics. credit further We our that first quarter. release mentioned weakened in the credit
states. As XXXX above, we to is allowance loan the quarter. a a partial point charge-off of credit in that to did a to We in report highly quarter. noted operators health X our started million this care out $XX million this to increase contributed borrower this leases This basis $X relating first facilities specialized credit the in in loan various
to recover operators cost was for the were by sufficient buildings and impacted clients inflation and incremental borrowers' the timely of COVID were of operators as which the to needed patients. The reimbursement, unable their collect
census As result, skilled went incurred et shortfalls, a labor lab down, operators revenue cetera.
years. the team a resolution, executed team management is before banked reliance lesson had and on hard many where take for successfully the industry. The is specific one experienced the similar business corners much model that swallow, and management facilitate of wisdom in is the to was quarters. we Our health care a have pill could helping a cooperative This borrower and is learned which few done it the very of
this in in markets to quickly work resolve the The those and buildings will minimize to [indiscernible]. are We and loss as areas possible attractive as are markets. in good our -- matter
I of that allowance no for net charge-off a for the So we to previously. the mentioned we're basis have so Currently, rest on inclusive flattish our will of given the anticipating here, loan points believe to of XXXX, reserves XX all from we above, are rate increase XX XXXX. the account reason
CRE about supplemental so added some in more just we've day. you information estate. know, primarily construction credit More real and commercial And on for the
construction CRE Our well. continues portfolio to perform very
office attention might hospitality through expect, pay to and you our officers multifamily, portfolios. As continue our particular credit
We continue construct. to exposure push lower for and
total before XXXX. Our achieved believe capital, target XX% risk-based we be of of can year-end
go to we noted red appetite the unchanged, change XXXX bottom any right Our when table don't we is solid on below XX%. the and appetite as almost as largely even in by anticipate
continue perceive in are to offense only real strategic We and but on this to any somewhat should me in we're client new high-quality any multifamily, let stress, estate, primarily anyone limited to sort commitments some of and interested be way here. warehouse no relationships space
liquidity much, inflation As and would tight longer, been center don't around agree to We lots office, exposure liquidity power in say for CRE other has these multi-tenant We downtown very of segments. specific this impactful. high-end that availability impact to if just is discussion the takeout any, space. the segments COVID retail, now and have for hospitality where institutional of higher and
borrowers, specifically long priced that Mae any exit Fannie we, out sale X% our getting get liquidity, there's institutional regarding a and type There For attractive remains generally Mac. are takeout loan. of recently insurance segments, projects, be the are know from not a from more to construction companies bank of and seeing sort for more capital whether desperate which has favorably delayed it our property other these marketing by to our panicked cases. of lenders, so in These borrowers noise agency borrowers that projects, appears than life our permanent X% be Freddie the out usually for most I securing sources lenders there and these debt, decisioning somewhat to banks, lot like were ample support. or are to
from XX-year firms X.X%. terms bank rates, and it, in versus agencies seeing range X% are between X% We insurance the call and
available. is market CMBS The
typically are rate All or borrowers the inherent a embedded and -- typical CMBS options if in to now, the are for of refinance. not big debt rightsizing outstanding for better arrows loan structure. sell their executing banks the elected fans remain our environment with to However, thus waiting necessary in contracts original given construction flexibility many extension balance, by the have
Again, asset some credit select information on various measurements. quality CRE and
We some this added slide. to information LCD have
Our the adjustments should with LTVs, we are as chart room believe, lots the indicates valuation and markets of require. solid, for
thing LTV also work worst analyzed before million XX% greater declines from LTV credits. before XX%. some the COVID nonowner-occupied but recent The loan office real That balances in at estate $XX very now XXXX. for home a have January XX% was million to was of with for and currently, loan in went an $X still reduction XX% have comfortable the where than and We commercial a from was seen Pinnacle start renewals modest these
an performing, million from them. The XX% believe there's hotel loan $XX XX%. that best of and term, issues moved we no result to reason with LTV loans any was are Both have now longer these an to of
credit metrics a and We in but and our from NPLs enviable ago, remain humble in assets have these experienced classified some year opinion. increase levels
which have several our our to to strong as has experienced years strengthen of and market data, increases, our Additionally, rental rates sponsors. served remain occupancy levels
deck. information of in is that also supplemental Some the
in always, as and a to fees, I'll the speak on Now few BHG minutes.
fee and other revenues BHG were XX.X% up nonrecurring Excluding items, quarter. various linked
of We BOLI we our units had pleased report last of quarter wealth planned. first continue as management XXXX. are is a quarter the that and professionals remainder strong The to will performing fully did the efforts work our wealth in management expect
quarter. see incremental some in quarter, work, to from expect also we that second the So third the but revenue into
to to that mentioned As right it Terry elected a mortgage asset record this we servicing quarter. earlier,
for It's small We HC have from business ago. Memphis lending ] Freddie since PNFP printing originates loan ] loan million. been really with the loan Freddie, Mac Magna purchased the standard $X.X Bank's retaining loans offers. serving with we Mac program Freddie small [ $X service. PNFP financing [ the Bank SBL several the is to merged unit with SBL years for the of apartment who amounts million in
each and on various the and we years, growth fit, assessments strategic on cultural year, as Over we strategic determine potential do business alignment, forth. to so perform so lines
the value especially of every several rates the to of We've being a now As in escalate In will loans unit volume servicing quarters. serviced third-party of increase, we value the over million, which to appraisal increased last $XX.X the we in line of revalue that, quarter. right determine the obtained also recent years. that need
the range given of year, performance the primarily several are first to All driven lines in by in of primary seems A primary fee our our of XX% in, we the raising revenues reasonable quarter. businesses. XX% business growth fee for guidance this
came First the out We, backing of than we assessment special in slightly first million, quarter. in special recorded the everyone $X.XX additional less else, assessment. expense quarter the after anticipated accrual FDIC FDIC expenses like an
lowered we're Obviously, to our unless from that to XX% now of going XXX% XXX% happen end is to like year, we back achieve target year the here incentive our quarter. feel XXXX financial to but Importantly, goal at first payout bring fiscal for targets. can't we the our it target this to
to relationship is other. don't the our benefit we performance helps the In one between firm that and we've and the the end, since we created incentive started plan sacrifice ensure our works intent financial
to have year. at million We the million outlook unchanged keep our for to $XXX elected expense $XXX
You why I might more. ask lowered
that this. some way We we believe back our to reason have find can into
we intact, of to back so we our the it hope eliminated So consistent incentives believe we We overall and to quarter, for but for considered XXXX ways we get outlook some -- costs, as we're those have in to to going deploy get largely our manage other now. back some also expense the will necessary. first is keep
BHG. the to Now
tighter their As the the still believes in a the macro XXXX credit environment rate reach, box slide could first indicates, as environment. BHG down our impact those we quarter, that the flattish production, given higher-for-longer is Last production to in were rate anticipated origination year trends and of the but quarter, a interest impact assumptions. target
doesn't than understanding Also, the in my probably BHG million in XX expense of ABS to paper. added very first the also a issuance, for $XXX spread very it which quarter their strong sales participated as were bank results. they mentioned ninth night network with issuance net more to firms that great on than And the thus placements, see. demand provision to Also last and is again quarter for mind the for over fourth $XX into million. quarter another press securitization in keep BHG As anticipate the the was all closed XX%, a excited release year. securitization this we of greater in we until
while be with this believes platform that environment. decreases widen in thing balance first a fairly All did are holding quarter. from the also perspective, them, spreads good during auction X.X%, spread BHG sheet rate spreads, rate volume start, perspective. a consistent quarter not to in, spreads to are when the believes only the but for a will BHG from As prior spreads
credit X.X% slide. is going quarter reserves losses loans, experience. pertains and this On the on but On the credit sheet uptick the business, of good there's quarter it to during X.X%. for at as from modest to first first both reserves, information BHG balance for news BHG's off-balance on the sheet lot for a X.X%, and did sheet in was increase off-balance
at first for than to anticipating or the been half XXXX a improving. have assumptions our of least around credit year critical more was We
balances down. Even increased though the the why of great in on overhang the went XXXX average with rates because was believes balances. the sheet the quarter, for and our up the quarter, balance tackling during for have charge-off both value sheet charge-off in Even increased decreased the rate sheet of dollar first charge-off the inflation BHG for first balance along that though XXXX. rate charge-offs on may on actual COVID corner average and That's balance they on out the turned
post-COVID is that Also, fintech first left off chart in days credit. believes to indicates, than back quarters. for too from tirelessly on the than over consumer sheet, on get all of XX are come appear chart line to bottom of both Again, to next BHG dues indicates, the as gathered delinquencies, but BHG information the More experience greater over the better months balance loss quarter, BHG's other loans, As encouraging. at environment. bending client which early to off be based topped their rating few progress past pass-through of has and credit last have far, end the It's and thus victory, competitors. are the the declare few especially agencies, will the their very pre-COVID worked consumer down
achieve earnings, will and not as said, As or level year is interested great as for to as of volume emphasis That originated say, credit BHG same forward. spreads in an placing the credit, their to not in adjusting That achieving going to the of to last help itself strong and appetite origination as it credit should originations models effort. goals. is BHG's ever. take BHG's Suffice
this to earnings As mid-single-digit growth is year. BHG their target earnings, holding for to
potential tactics can bottom to BHGS deploy they their earnings. help and increase Additionally, line
for will, have an like with important year. credit. what If it will this we BHG impressive happens improvement The is BHG continues, assumption year believe
to With I'll turn back it Terry. that, over
