continue for share We the and strategy common fourth quarter per on you and equity target income year. as good or our another tangible morning solid everyone. this we net available Thank of of toward XX% with return on progress shareholders quarter execute to $X.XX common Ellen million to had common $XXX
by the quarter year businesses. activity grew our We and strong average leases by our continued from prior the was origination across core quarter, all portfolio loans in and X% ago which X% driven of in
loans. non-accrual and We reduced stay metrics credit underwriting, we disciplined in our stable, remain
elevated expenses ratio Our as improved seasonal from efficiency last net came quarter. down operating levels
book Federal this balance $XXX our repurchased there share further reduce now X.X% I to value per go our the Once tangible quarter. further results financial were Home again, on We our will quarter. book sheet. items contributed detail debt into Bank which of Loan noteworthy and growth we tangible for value, million no stock below common the And optimized
of X net the Slide prior secured Interest relatively declined lower which to finance was were by borrowing offset income revenue higher Turning costs, constant. presentation, by debt. deposit from driven costs on the partially quarter,
approximately in interest backed premium rates, interest reduction securities prepayments. Higher by from forecast driven by $X accelerated in the acceleration our actual The long-term and the amortization essentially the mortgage was on was loans million of on offset higher which resulted investments.
net resulting margin finance the down last by costs. X.XX%, of basis the our quarter is impact finance margin deposit reduction by partially deposit X costs lower borrowing prior seven The net walk, quarter driven strong full higher from Slide quarter. offset was was from points growth
from impacted was by on basis points the backed portfolio. five mortgage our approximately acceleration margin premium also the The negatively amortization of securities investment
average we the Federal quarter I about product. by ended percentage Home was of the normal redeployed investments, debt Loan X.X%. first As than since billion end a cash repaying or of excess about deposit strong our which We in an quarter, higher rate discussed $X savings driven cash with performance February the builder at last of Bank in by
Xst, quarter as our which Xst, more and opportunistically third options reduce at on then will on moves. Fed further savings rate basis non-maturity by we July benefit We to XX continue reduced rates five look deposit builder and the points will further basis May to points the
lower the by was yields on Loan count, backed day more than mortgage modestly from offset described but improved yields benefit an securities book increase in our above.
interest to and agreement offset of The higher expired prepayment by reduction that law recoveries share on was margin indemnification benefited related was on quarter, the a which which March benefits asset a XXst. in this level from interest the mostly
yields expense, productivity were by were lower in relatively constant lease initiatives. operating gross our as reflecting Net maintenance some rail lower offset yields of
increased to of compared written to X, million Turning loan increase The was and a that other finance income quarter. the included in on gain the prior sale off. was non-interest primarily a commercial previously Slide $X
but the than Capital markets this income commercial the reflecting offset fees middle-market derivative finance. higher more were was by decline in M&A quarter weaker customer driven environment sponsor down
intangible the $X prior down from to are cost, asset seasonally compensation benefit and X. levels. amortization the which expenses, from decreased of to elevated quarter. Operating Turning related excluding Slide million decrease $X million
our and quarter first marketing the reduced costs ahead offset our in this was related growth deposit significantly our this and We advertising as exceeded quarter maturities. quarter’s expectations to needed of to deposits, CD amount the
that resulting in expenses accounting of increased approximately $X several items, Other a of other quarter, the resulted operating for new was lease property income. estimate adoption tax we of from million million $X that including standard expenses million $X this the smaller offset non-interest from combination
the offsetting that expenses in non-interest million accounting million $XX new $X to benefit with included of will full-year quarter continue $XX million increase increase The by we estimate XXXX, to the income. million standard and $XX $XX million to a other operating lease
The efficiency and improved the increased points. ratio the by quarter, lease more operating XX% the to XX% than XXX last expenses resulting we reflects estimate from in changes from basis accounting rate reduction which net aforementioned little
We costs at target to reductions and achieve we on-track also operating to operating remain in our the cost when level. are compared committed while XXXX least to XXXX million of further through $XX reducing investing businesses our
Slide XX unchanged average essentially earning from were the sheet. Average assets consolidated balance quarter. shows our prior
loans debt excess consumer deployed investment Home and the Bank We runoff securities. includes legacy cash impact X%, average we mortgage Federal leases and the by quarter, portfolio. from During repay the of to the which grew fund Loan
assets cash in to investments at growth about quarter earning end. average our strong at and resulting Average first XX% quarter, rate run of from our but than interest-bearing declined deposit typical XX% the remained higher
two basis, yield book slowed quarter’s liquidity increased average quarter in full on last We securities of deposits this growth. duration flatness impact remains from higher investment average deposits the X% quarter, of reflecting growth of a our strong reflecting period years, basis, end the the level increased but around on the X%, deposit at curve. The
loans Commercial in quarter. Slide and Finance grew across XX, average all on origination our growth prior portfolios. X% leases drove core businesses provides volume our from more by division. of detail Strong the
see we commercial which to Given the lending to have volume. contributed finance diversity remained continue also which Prepayments XX% to growth. of based about our opportunities, the origination collateral contributed gorgeous of low business,
in strong financing mostly equipment across which our In offset factoring business new business. growth business drove continued volume reduction portfolios, capital, by a the was
this and yields increases in We improvement second small driven businesses with also last the an equipment quarter business the in technology an year driven by of in half experienced solutions. pricing finance
add continued in in but we a to in from In to high net starting quarter, last pressure aggressively origination pricing areas said, see decline the are and to from given increased reduction Real assets. resulted loans. activity a in level That rates some looking competitors certain Finance prepayment Estate swap average
management portfolio to our this Our rail modestly of deliveries as down XX% on repriced mostly quarter below offsets and Utilization leases increased declined XX% new activity. slightly portfolio quarter. as depreciation average this just
the We strength car markets. petroleum continue in see to driven tank chemical rates by and lease
industrial many fleet or within translating exhibiting environment, and growth, as some which weak is we into sand, these In are our pressure rail on freight sectors minerals markets. industry grain. coal expect and non-metallic slower loadings in this However, repricing such utilization
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amount but We of fleet on to lease in renewing. cars XX% XXXX, the based type renewals total vary on expect quarter-to-quarter will to reprice the continue to XX% down and
portfolio. continued Banking mortgage Commercial legacy despite X% by the the loans we average runoff In consumer grew of
by an and the in environment, origination seen driven interest increase activity correspondent levels retail it have channels. but our driving lending in We stronger current also prepayment is rate
our XXX FICO continue origination and new have scores and of new LTVs to XX% our the XX% area. channel retail through came origination digital total in mortgage below
within further As book week, risk continued as portfolio. efforts value last we of our the sold $XXX Ellen million non-performing indicated, loans of part profile, approximately to improve LCM our in
proceeds in carrying value. excess received We
recognized or reside most on of where the PCI the characterized level were proceeds yield life typically the was a loans over pools on basis. the income as would excess a what pool. the be the in, given cash of remaining will they However, interest gain be loans, of Based recognized flows
average the reflects mentioned which highlights mix, funding I our earlier. XX Slice trends
continue our We funding optimize look including assets our with to of deposits. shrinking to increasing our mix, funded for company and bank mix ways holding
albeit the second the billion strong the quarter type illustrates in increased growth deposits slower from $XX.X XX continue growth quarter. deposits reflecting at to Average mix savings account throughout quarter online Slide $X our deposit and channel. billion, a last and prior by in
expectations. XX% first XX% The with cost from increased in the cumulative deposits last current since increased to of tightening the as December beta XXXX, hike consistent the quarter our cycle of
on especially focusing deposit rates costs declined. which of are we by optimizing will as proportion better, non-maturity We deposits, think increasing perform the
beginning XX moves. points as any our reduced of since and a builder levels We of meaningful rate have result also basis have attrition the seen May rate not savings of by these
any growth and we continue to costs. test Notwithstanding optimize Fed, from fund of need rate effort funding likely our to to to are balancing our rates, deposit the our reductions elasticity or continuing
Turning capital XX. Slide to on
$XXX consisting X.X of an tangible and the quarter, of approximately price million in shares. During value XX average we common repurchased $XX.XX. just under with million shares quarter at book the in shares, million Below
million. Our CETX approximately the the expiration FDIC, loss ratio agreement quarter the which $XXX at of RWA reflecting by the share the XX.X%, decline of end increased with to
HVCRE definition common adoption the Tier If had X you recall, to ratio Partially equity offset last of the accounting by quarter, regulatory net change in new increase the related lease of the standard. we the loans. in a
net was minimal. these both on aggregate, the ratios capital changes In of our impact from
We the XX.X% the Tier target by continue X have to at end beginning to ratio the XX% this XX% year year. equity the from common reduced and of of
XX this guidance quarter guidance below range. our XX was net or $XX $XX Slide credit basis our and within charge-offs provision credit million, points was range highlights our The trends. million modestly
charge-offs to were which from at and $XX capital. declined business prior reserved continue of previously small in million business for the finance, commercial primarily by driven Net quarter within solutions most be
and due approximately declined current. received or above been on non-accrual X% reduction had non-accruals. loans remaining by exited Non-accrual of book to other quarter $XX half previously charge-offs slightly are reserved the million we the of the this that value and was About loans XX%
broad the risk performing new business in overall the come environment and metrics continue originations better rating risk portfolio. credit stable credit Our than remains and to at the of ratings
last reserves to to at continue and slightly X.XX% loans months and remain Our for four and than stable the net X.XX% more times commercial strong charge-offs. XX banking, up of reflect total in
XX Slide discussed. performance key highlights we just reflecting metrics our the trends
tax from rate items business. driven debts was tax XX% local million, with by benefited in ordinary state of the authorities and effective several of was which Our to audit course settlements $X and fleet
Excluding have the our would effective items, been in-line those rate with guidance. discrete XX% tax
on XX.X%. continuing operations return equity from common was tangible Our
lower effective tax second a the semiannual to X.X% been expenses preferred and dividend the fourth prior quarter If our have common you would the is return quarters, that XX.X%, normalize paid tangible in in on equity and from reflecting operating up lower rate.
an continuing to and When the X.X% and XXXX. We increases by assumed are in of focused growth of fourth remain our we assumed targeting ROTCE XXXX, back committed achieving XX% our to quarter the or in to rate we fourth returns XX% initial on and improve no of outlook of quarter set decreases GDP X%. at January, least
and of starting we businesses, to uncertainty little see customer shift commercial from resulting primarily our As are sentiment some to in the related trade Ellen a discussions. mentioned, tariff
evolve and XXXX. continues and In addition, in now the environment multiple to obviously is XXXX reflecting cuts rate rate
would be week and to remain cut of interest rate While able on focused revenue, equity finance continuous still another common the improvement. XXXX tangible pressure our we next we later net return XQ target And believe basis XX%. would we point our on XX achieve this year
uncertain making remains The achieving equity on quarter to challenging the least environment of more predict, fourth XX% a target. at XXXX tangible XXXX is common but our in return
plan current XXXX we to call. on you keep as fourth will guidance quarter our earnings our update posted and through progress the navigate environment We on our
or highlights XX quarter. Page third outlook the for
legacy of that and in assets and continue lower sales in continued total the core reflecting runoff the mortgage quarterly of We growth our portfolio. expect low-single-digit to growth portfolio, portfolio consumer non-performing the slightly
be basis cut XXXX point one third another target the range and low our reflecting at of fourth will quarter XX the end think in in for a our We quarter. the now margin
is to and For quarter down as further, the and range pressured end the expected depending net be third for bottom of the continue on factors. other finance margin as to to deposits environment target trend rates well could the
And as We are be by predict interest but by down is continued offset difficult benefits to to potential a and next higher rate. our mostly higher rates depositors continue will offset yields lower maintenance this earlier of deposit in think recoveries in prepayment CD of a quarter. to - flat to be hand savings a I have reduction products reprice our rate expect level We relatively into migration which we had mentioned will costs. as quarter, builder
expect We quarter be expenses costs. next related to operating flat slightly to to higher marketing
items efficiency XX% I the mentioned, mid deposit As quarter metrics lease be any next reflecting activities tax normalize. discrete trends of net rate is changes. and the to remain our full-year to in absent expected just outlook. consistent with effective includes and the accounting the are Credit impact tax The ratio expected area
with will call turn over And the back that, Ellen. I to
