Thank you, Doug.
sheet assets. remix the toward continue in the During traditional core plan reorient to our quarter, we execute and more and to balance
First, portfolio sold $XXX,XXX. our million by bank $XX of quarter, $XXX of including securities was the million debt of the during of remaining We which our million for runoff $XXX we of a gain holdings. reduced exit the completed CLO further
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commitment increased million balances quarter, have the half the reduce on XX% a the $XX collectively have the loan key held to increased exit originations residential by and increased CRE X% million, and million, the also to million includes growing investment year XX% growing or securities which prior over mortgage quarter year by loan $XXX occurred Originated investment ago. or from These book during remaining the of expect average of from production the prior with XX% new strategy in by totaled production or million, with X% aligned Gross quarter. annualized the year-end, billion up commercial $XXX balances the during fourth portfolio. remix million, increased from totaled which from or balances, $XXX and X.XX%. quarter by risk of MLPs quarter, first year XXXX. sales our of $X.X $XXX by as and portions up yields continue million loan ago. million loan XX% $XXX by for rate. fourth by the We portfolios At we growth by loans XX% defined higher million, X%, quarter growth $XX Commercial $XXX million, a $XXX our from all the to across a growing for represented for declined gross multifamily C&I with ago. and or Net $XX consumer by loans are loan asset loan The held be
SBA we loans million a Additionally sold of $XX.X during million. the $X.X of gain quarter, at
cost believe here and million high continue planned fit totals. forward unit reduction volatility deposit this We within institutional and remaining volatility of Of of $XXX and deposit through strategy resulting overall and banking The these replace our volatility relationships of commercial, by reliance side, runoff million from and are $XXX to cost high high $XXX $XXX we non-brokered declined high We able deposits on institutional current be to million deposits to driven will retail reflecting $XXX by deposits year-end. by deposits million. the in the expected we near-term. rate that deposits were at bank private balances bank high $XXX deposits and our primarily deposit in remix are balances, high business non-institutional areas. our products of our reduce go approximately bank million a quarter million as On reduced
past first Although fourth the quarter. in as increased the deposit account XX% able quarter. we're grown the over of alone, total during the million for in of balance one now $XXX XX% have remaining the quarter the non-institutional at three growth has quarters Non-brokered deposits Broker we quarter institutional up these not deposits, decline deposits from accelerated that gap of fill we to the backfill from and end the by balances. gap banking
Our needed stockholders Transitioning core common to primary the FHLB funding, franchises meantime, we income but fourth advances incremental to deposit as recognize take well $X.X the available goal deposits was continue as years implemented. statement, while are or low diluted strategies cost common to deposit build. broker quarter core expect for as $X.XX In per share. utilize the our million, to net is income premier deposit to growing we
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income includes valuation adjustment MSR negative non-interest $X.X earlier, noted million the As on asset. a
of increased own eight held legally basis quarter, quarter quarters. the be repurchased we flat X.XX%. basis declining majority earning sale loans the by X to opportunity to costs the to in required earning to on well eligible approximately are the we borrowing for interest for focus adjustment at as totaled driven basis advances which record to for Security the in to interest a and for prior as core of cost the in As asset yield the have quarter the basis X.XX%. decreased loan and Held Average margin to buyer yields decreased from believe points to negative reflects flat expected, The diligence XX place a as even the for longer-term for The early part new yield which from SFR second investment Disappointingly at were a increase increase in the net on after $X.X borrowing short-term sell previous liability arrive Ginnie quarter levels to term primarily from loans here were and basis to our we largely higher fourth expected revenues. increased efforts year related X.XX%, put valuation though have are load X.XX% fourth ongoing non-binding the by put bank to not at We three Ginnie an which overall point were asset that quarter. of earning advances, interest $XXX position. costs point the interest improve primarily and for quarter excludes XX hope to year-end days one on the due X.XX%. costs. offered The the an X are these period four by price. and deposit increased FHLB points somewhat rates underlying our grow These bearing is sale. in to we stabilized transferred decrease $X.X driven and assets are point loans, interest on tiered delinquent buyer both in loans. of by points X February during have asset, loans but of liabilities agency with higher FHLB overnight yields agency grow agreement bearing MSR The basis was at Mae billion which XX recorded early Mae assets million assets, billion advances a The quarter. prospective conducting billion result expense of loans. a held do the interest offer file $X.X re-recognized We're servicing as over prior covers
building are margin we deposit Doug As noted, strong margin. are over a we sensitive interest rate Deposit net base pressure in funding improve our recognize the early our biggest stages that have and put will of and the on single opportunity time. costs wholesale deposit to franchise continue to
first expect interest the the As asset the of half treasury we Interest begin interest $XX.X to on increased quarter discipline million. a by prior during continue year the in implement impacted income on thereafter. from pools lower million, slow loans, launch income for $XXX,XXX and quarter driven to the and platform, the side SFR which fourth income new management we sale pricing $X.X interest expansion to deposit and by stabilize and declined on income NIM held by zero
million. income interest commercial by $X.X and assets while from securities residential Additionally, by was increased other and loans interest on income $X.X lowered million
expect start pools, loan more million Now loan cost balances us growth with is income end by as strong balances quarter at lag and of you footings average SFR over provide to balances end that balances when sale compared interest time. period late This to XXXX. to higher average period seasoned $XXX the drive fundings would moved loan we look we have past to apparent
growth, statement the provision us the given which loan quarter, hurts strong higher origination. Another the item to income period was of this in the on note,
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we $XX.X be and level number items in expenses items target to for Excluding this legal with that a expenses. expense, items not and expenses. came million write-off of of million. lease expenses items, and totaled These include severance, item, $XX.X these Adjusted $X.X at our non-interest included did consider million in operating termination were core $XX software million line near-term
be to hopeful these largely head as we items non-recurring are XXXX. We into expense past
came continues for for Non-interest time overly expense absolute efficiency improve recognize for more mix, at the balance fourth outlier that an we which opportunity. to opportunity for assets number sheet ratio versus opportunity existing the although have expense adjusted for asset after base in quarter, base. items. an in we a quarter XX% reflect growing average non-recurring and at revenue adjusting by is the business and came not expenses leveraging this our the This X.XX% an ratio operations our continuing from over expense reduction Our of us to
share expense able when early thoughts be our February. we strategic in to more to expect outlook roadmap We with around update our you
rates tax and our to related solar got we tax a for taxes, questions income Lastly, program. equity of lot on outlook
be the full than that likely tax effective is statutory the rate it substantially full less XXXX, will for our year For rate.
tax first of year solar the in expect our investment normalized of our the to year. we in effective reverting of level minimal before half more existing half program, level rate be to the Given the second the a
complete full expectation our program assessment changes, we the we the share a can and years. coming As a plan of for rate finalize tax tax reform recent
asset credit quality strong to stable. Moving trends and be metrics, to continue and
non-performing XX up Our from and year the quarter asset quarter slightly points, just a ratio last was basis ago. points for XX basis
the is near, that quarter know low by absolute adequately specific around million in Overall, were be quarter. new loans as we non-performing increased amount assets resulted to assets important remain two to total quarter, to believe metrics points loans by X.X%. basis, level a credits. just by $X.X bouncing are some primarily these the loans XX remain year level. from ratio minimal from which strong non-performing quarter’s Non-performing at equity loan a of we're and increased It driven reserves X% in to and Given basis Delinquent could these up we fourth prior additional declined million delinquent loans there continued is an from collateralized. just from XX On prior ago point the to quarter. strong to $XX.X the delinquencies slightly basis absolute
losses allowance ALLL note million of basis basis X to were that and basis to the Net The XX $XX we $XXX,XXX seen these year-end, million annualized or $XX.X for come after quarter loans non-performing However, ratio points of total have the of loans. balances covered and up I current. and quarter and XXX% for loans. charge-offs leases a points ended would percentage X as loans leaf increased to points
been as three fully XX.X%, as common it capital is ratios a has the X at over remains based Basel position X.X%, well All Tier X capital phased-in in three risk was strong is high. III totaled also years. Tier capital the exceed guidelines. year ratio which which capital equity highest Our
financials it I year-end. summary increased from That fourth and ago X.X% our our quarter Additionally, up the ratio XX% hand a to for over Doug. TCE will back year of has to wraps the at capital
