Kevin. you, Thank
our the to just items As X, will results, Slide our with in quarter. I our my some of Beginning was million the limit due financial primarily coupled review with more loan in interest $XXX.X net with start the interest with preceding will margin. I compared reduction million quarter. discussions I slight The income, $XXX.X significant net in first decrease to a balances average lower totaled which
improvement adjustment, point X On accounting core our of net the our quarter interest in to decline a increase point basis, the excluding from basis margin points margin declined first purchase was basis due basis The X.XX%. deposits. decline primarily net an Our decline a of by XXXX. by X X X was which basis interest to in point cost
increase costs. moderation the increase our are costs, making points as deposit the saw rate increase in reflects we increase the still manage this X are our we deposit the seeing XX point basis various with While to in modest initiatives was it to basis a down quarter quarter. and a employing we The significant we progress in a from gathering of enhance better core prior are deposit
renewals trends CDs time the in We the rate. renewal to the deposit between delta repricing and the see also rate positive or continue expiring gap on
was second down points the from repricing points quarter, gap basis repricing XX XX basis in the significantly During the first quarter. gap preceding the
lead gap The further in ability manage should to the our deposit to repricing of improvement moderation our going forward. costs
excluding accounting Our adjustment average purchase was loan yield flat quarter-over-quarter. relatively
to result couple initially loans projections, Now our interest cuts to regard point of interest net rates. months, the in approximately projection net expectation If our rate towards now margin margins. sentiment in basis interest have basis rate XXXX, past lower our the this the would prevailing in turned in decline the rates to interest will interest interest in on has on decline for with points XXXX. of year, impact X our an as margin adverse of X a that in XX decline Based repriced our
decline Some following obviously deposits this also in would offset the month. priced be lower of as
Slide to X. on moving Now
loan up quarter. preceding The sales. to from income on in first non-interest the higher million, primary was gains $XX.X preceding Our million $XX.X from variance net quarter the attributable was
residential we million our which seasoned of During $XX XX% portfolio. the loans sales of quarter, market, represented mortgage approximately sold mortgage to from the secondary
gain of comparable the gains the recorded this $XXX,XXX during Also the in million We a quarter recognized quarters. repositioned a compares security in our net sales of no $XXX,XXX. securities with This of portion versus and in investment quarter. $X.X preceding we quarter, investment
non-interest other quarter. major income were the All with consistent of of preceding sources our relatively
to X. on Slide non-interest Moving expenses on
by expenses. more still than projected $XX.X million range up from our Our expense quarter was the non-interest little prior second which of $X.X a within quarter, is million in but the
by have the which and from approximately benefit a controlling was down good salary in job We expenses, X% our prior quarter. done
as of time full XX, but down was year-over-year, decreased XX a by items. expense XX X,XXX decrease to offset equivalent increases in XXXX, this other quarter-over-quarter by by June of count number employee and Our was
ongoing $XXX,XXX enhanced professional operations our we bank. reflect and notably, approximately which CECL our to Most increased expenses implementation of efforts believe by that higher our fees our investment related
quarter, a to had be related also quarter-to-quarter. line expenses in volatile credit We $XXX,XXX this tends increase items which
from with expense annualized raised level to expense the basis non-interest lower quarter. assets points average assets higher interest up level prior the to X.XX%, our of The combined X earning average
at areas. the quarter, savings for we and will branch the will third start which to quarter the full other end impact second consolidated of of was quarter. the plan of positive ahead cost completed the This our in branches will higher benefit six on beginning the in offset recent see Looking quarter. expenses the We third rationalization see we help
to moving X. on Slide Now
saw from shift favorable total deposits we Our by the declined prior the of in approximately end quarter deposits. mix of very a X% although our
our of of for more aggressive in increased deposit core which lower our increases gathering all initial nice on cost categories our services. focuses management have result efforts deposit treasury sales We our and reflects
demand the non-interest end X% increased while deposits were the deposits Our money X%. bearing up from market of prior approximately quarter
department more of As has part to an customers. which become money our the our our for rate, strategy, on competitive market attractive have of certificate made alternative we them deposits
to deposits able into deposit has improved As cost factor deposit market are management. a we to a successfully contributing result, maturing, been convert been some our have which as time accounts, customers in money
also Given time and were during pricing. to second decrease our we in our success improvement the our mix. a our deposit deposit in in CD in more led quarter other be This strategic deposit overall areas, to gathering balances the able
to review our on moving X, Slide asset I'll quality. Now,
handful the that trends in presented was and provided potential were exposures. recall, the were quarter second noticeable had of the unique increases strong We loans may credit perspective. of you and credit confident relationships we solid that the a that underlying health we minimal last that criticized quarter in non-accrual driven for loss portfolio that support by experienced As broader loans
our to The encourage categories loans. across that refinancing past decline assets, our had seek of other We and of borrowers loans from primary all declines of improvement workout the in criticized asset and downs, and the in driver pay with which efforts significant in classified problem board those loans non-performing much quality banks. payoffs was from due resulted
we $XX related on large discussed approximately our loans in to handful two were to conference the quarter. credits first placed on on non-accrual one call, totaled that of the last was problem we paid million. Specific relationship These off that payoffs
criticized We to was payoff the a million that first a CRE the also for in mixed condominium $XX on received downgraded quarter. use loan loan
non-accruals criticized payoffs asset we of in problem call. we that into credit was deterioration our combination categories other in additional of improvement the discussed last X%. metrics any the There with modest on loan resulted by loans and XX% inflow saw quarter the no quarter in down by the the balance in the The and second strong our down
loans offs had basis million in annualized credit offs year-to-date points of are net charge average quarter We basis, which charge On just We low $X.X an a had loans. of net another points average also basis X of represented very our X losses. on basis. just
for Our increased from points our to basis losses XX loan points. of provision million to allowance total $X.X XX ratio loan basis
the me With turn that, call Kevin. back let to
