call joining to Banc of Thank you, today part the as Doug. am I pleased of be California.
local this shaped focused about wide in talk the the a as of the and to California. my few and a been on view on quarter and market XX of niches real platforms strength in Southern include as breadth I've that well a as results, the the track managing has minute of let meet estate traditional institutions operating especially I institutions, the diverse take market, that opportunities nearly the years which lending third California Before Banc products, share CFO, me all market. opportunity bank points to nation for
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that early days the With the at helm, helps solidify transformation. the to in right it its Doug the was time California and this having refresh of board of Banc join to
more Now financials. designed core continued base. I’ll numerous a quarter quarter traditional and Starting and the discuss our third with balance third asset on the to toward to reorient remix focused sheet, actions be
of First, we’ve or Included in securities. selling gain million of sale MLPs million. reduced million $XXX $X.X by $XXX that $XX million securities portfolio at a of the of XX% were portfolio our
million. million the $X strategy and the of securities portions was end, debt with bank of $XX of over approximately portfolio gain million we aligned sold $XX held to portfolio. risk sales at of quarters. that and positions to quarter XX% At of few bank these the a MLPs million remaining exit or debt we our were fully reduce next $XXX high expect of Additionally, These
held million a declined million by Second, for resulted SFR loan driven $XXX completed of sale in primarily which gain. $XXX seasoned million balances sale $X.X loans, by mortgage the of
no have remaining we XX, September of loans. As PCI
of jumbo $XXX,XXX during of sold at a at mortgage $XX the residential Additionally, SBA quarter, loans million million loans $XXX,XXX. of of $X.X we gain and a gain
selective vast SFR the the sales portfolio with course. our ordinary to expect we forward, Going majority of in production
by declined million tied related the to sold loans to operations Third, assets down platform. assets $XXX previously from of home bank discontinued wind the
the to more side, assets. non-core be liability in middling funding take source action reliance remix sources, than the are our reduce beginning in funding remix but the of on is On challenging we to
First, by expect decline generally balance quarters. over quarter a of coming to the $XXX the and deposits the broker broker million we deposits see in climbed during
and a of to million the that viewed fit runoff with high commonly high-volatility building that like would decline several quarters. volatility banking high These the of institutional $XXX million saw institutional were note core our for end banking as – deposits. million called approximately what us and million Second, of not of of we $XXX also quarter, do deposits leaving $XX runoff, we deposits strategy to I deposits. rate of were within of have next remaining the an additional deposits following $XXX deposits will high-rate or
highlight deposits to core goal private low to deposit broker cost It we third Our the grow funding, will interim, FHLB is select In recognizes deposits, borrowings supplement increased that the to banking runoff banking, is balances our time. as incremental community continue banking of our but deposit units have we commercial even quarter. to take and we needs. will utilize important overarching had funding all during and
are to of signs modest and we Although to overcome not institutional of deposit traction the the banking generation. focus runoff early seeing level deposits, for
deep Rita to of progress bankers, by attention of growing and deposits. addition continued all our expect see the in With core we
held total $XXX million or prior loans investment an activities, sheet quarter for rate. Moving increased annualized balance from to the core XX% or growth X% by
During loans the origination million mortgage added loan of million quarterly million result or of net into held-for-investment a The quarter, we was jumbo the from jumbo mortgage in we and residential of million residential loans rate a which remaining $XX to production, Of of growth represented growth, X% loans. transferred $XX the held-for-investment these $XX resulted XX% of quarter. two during $XXX annualized. held-for-investment new sold and held-for-sale
have the loans Over the as more year the Company as acquired we into the Company finance make have of of more of billion risk coupons, lower SFR Originated from a of equipment portion focused XX% loans higher up Perhaps loan increasing by by a loans sale toward to down divested average past carried portfolio. over loan came traditional, $XXX assets, past lower year-ago. loan fourth and divestiture these quarter core increased risk more remix million the or core yield an year, initially acquired and and and have the the $X last the which year. loans. importantly, mortgage the seasoned commercial declined portfolio loans, The the continued
improvements core us balances However, is with loan now with a a year-ago. comprised to leads increasing portfolio originated de-risk of expected or originated loan loan a loans. that higher level driven That have yield returns equal than increasingly higher
forward the of million and C&I to increased grow to portfolio and to peaked loan $XXX XX% portfolio year-ago. securities. grow which three loan loan and commercial is years, book and today, XX% lending multifamily Our while balances today. has the The loan on mortgage quarter. the to the over remix growth CRE to to loans comprised Result loan XX% book had originated X% grown increased XX% have focused of portfolio, the $X.X remixed focus has portfolio XX% during has balances increased loan investing the billion. XX% Reflecting from transition of continue have this billion portfolio, of is at diversified loans more or residential loan on $X.X going this a C&I, declined to loan balance to replace today, businesses, of including Commercial commercial total up past
the multifamily was team and accelerate million by million. $XX Within by are remains we million, management working loan by focus commercial and category, increased effort. $XX increased to Continue key growth loans loan although in loan the construction $XX C&I portfolio of production increased a
pleased along $X.XX. are mentioned securities million share the sales to with attention. call We sale today. to the a or MLP operations to income share, previously the included of mentioned. for income gains $XX.X your were to bank with net loans income previously per from certain common our diluted common and loan Transitioning $X.XX includes earnings diversification items results statement of continuing we book debt the per stockholders available of also number Non-interest that The was of want
out related accounted continue equity portfolios are investments of MLP bank of to the additional under was loss realized. In $X.X for expected be we million certain As accounting. gains transition and method equity CRA the of expense section on recorded to debt
record which of item other approximately of all million $X.X line income severance costs shown statement. the quarter, during in the related also We in expense the are
quarter third in included professional non-recurring Additionally, fees. the of XXX,XXX
current. affected to a want I of Lastly, to note tax couple items the
the First, recognized advisory by exercised associated previously wind in in announce through with down tax conjunction director expense resulted Certain of equity. benefit options with were the XXX,XXX a boards. and the
points on approximately increased tax of net X.XX%. assets Secondly, as margin quarter record development interest return our for million process normal earning to six research activities to increased and part XXXX. to provision we of $X.X yield XXXX interest-bearing a basis from the related cost the XX yields. tax The for costs. basis quarter of The basis primarily X the The true-up basis income credits third security XX points point interest The commercial primarily XX loan increase cost basis composition an quarter, in liabilities on both deposit in increase driven interest-bearing to point X.XX% points borrowing increase continues of to by inevitably XX to of basis improve interesting. and yields loan increased point interest due and through
As loans third year-ago. income from a quarter. to represents year-ago. XX% commercial Interest XX% from of interest XX% down a XX% loan was income from total residential XX% income interest securities now income, the declined up from for Interest
just exit However, bank securities reduce not $XX.X expect that were number do million be percentage third expenses we components and to would the of quarter operating expenses. come over non-interest down book debt. this core we time as our MLPs and and of so select included to items Total continue the consider remaining for to
method is near-term expenses continuing expense below losses the totals the expense is $XX to depreciation addition at solar credit $XX.X In level our from target million. severance the operations, equity million. program noted This tax and to related arrive which of earlier, levels to excluded
items through We number move contractual experience a one-time work we legal past continue and settlements. and legacy prior as expenses to
to contractors, are items costs these We the consultants, put near as reductions relatively as as on estate professional completed to be will legal not reductions earlier but hopeful which reduction number still future. programs focused we well the this compensation fees. the have in as in We efforts of focus action a much saving was force real rationalization headcount case past on as with year, and in
drive growth. bring personnel deposit of other into revenue and initiatives to in substantial expenses our As expect sales products order portion gathers, and we front reinvest savings achieved we continue of support and office additional some to down bankers, to these a specialist,
As more products view we strategic will planning our around and we our these are grow. share on teams, items people efforts to and finalize we seeking
assets at industry-leading prior basis, were the quarters. expense to to are for asset are third levels. adjusted down recognize Looking from not quarter our non-interest and X.XX% We two expenses these
think and is a in today. mix are sheet for they balance a we However, range business appropriate size
expense acknowledge currently came expenses improve for revenue. about us affected at Our ratio of adjusted a we and better of opportunity and to we quarter think in upon as is ratio to however the XX% revenue way efficiency efficiency to think both front the have in by we expenses assets the the
basis year for points was Our quarter a ratio XX non-performing ago. asset the down basis just points from XX
As seeing to XX believe want Delinquent strong losses to of do for quality today. asset metrics did that to non-performing financial the during from also points as been This a the ratio basis ALLL we credit up loan third X for and ended bank, which increased third total in than leases last loans to year XX the credit have the declined $XXX,XXX at expect X.X% continued ago adequate to quarter, X.X% strong and loans. the are were the loans. decrease ratio equity lease bounce to percentage note and and the total resources, basis to a stellar of end a just levels maintain we quarter. we The million $XX.X around assets to basis X metrics where year. and from at have The previous and points the loans to quarter allowance annualized points basis or point remain covered just XX% a quarter them loans of million within would low delinquent XXX% stood accruing. loans C&I to the of charge-offs Net it Non-performing we for and is in quarter strong given downgraded have is criticize borrow absolute of we more a the $XX collateral. I range remain quarter. current X.X%,
ratio years. has in the Tier which a Common at also capital totaled exceed to three-year equity X.X%, guidelines. was XX.X% capital highest position X tier been which Our ratios capital All three fully Basel is risk-based X III capital phased-in high. strengthen. continues is it
Company's and both common increased over of prior a structure regarding good portion equity from our hear equity tangible five the Given Both questions ratios ratios. common equity common we TCE the substantially equity, and including tangible equity capital or capital capital certain have equity quarters. current preferred investors tangible
low. TCE items like a to to select here. our I was compared ratio few highlight peers, As would
equity market is our equity equity complex in peers. more admittedly equity growth toward structure and one, the resulted Even community banks. that structure for multiples capital common more regional capital history Company's when This given situated of more similarly with weak. than is First, has expensive funding a preferred preferred two, weighted dividend, were than other preferred
Our total is common peer the tangible with consistent right and preferred equity median. in peers and equity or to line
Given growth execute capital initiatives. ability plan to about feel very we the levels, our our strong good continue to
and While we our as thoughts my expect our capital to capital do strategy. able outlook not we all later finalize you third results, it quarter plan with That this the year, back we Doug. wraps to to additional I'll over be and require update commentary for up around hand
