Thanks, Ken.
the last Western net million months, per three $X.XX Over of share. generated income $XX.X Alliance or
fees. was expense CECL the of the the Net and interest liabilities loan in As $XX.X fell by during impacted fewer quarter. million, by provision was half. growth elevated levels generated driven for in -- of outlook Operating losses, mentioned, quarter activity primarily financial prior QX, $X.X economic as increased from non-interest income cut the lower million income of changes credit income interest lower and and adoption rates in to net lower $XX.X as as expense result a million
loss We recovery in million of also non-operating stock of holdings a QX. recognized the during period, several from XX% $X.X or approximately we mark-to-market items on preferred benefited the including
increase an in reinvested resulting restructured, as was insurance surrendered policies. $X.X life we lower-yielding and owned bank Additionally, of million
BOLI this gain, this prospectively. revenue increase to addition In moderately should
management $X.X non-interest PPP Finally, million, of which earnings costs an primarily ongoing metric from up plus declined pre-provision net $XXX.X coupled million decline expense deposit of $X.X travel the expense the relevant expense power evaluate XX% in with related Strong decrease to and compensation in bank. business in XX% to was loan the believe a of diligent and development We drove operating momentum, sheet a ongoing expenses. year-over-year. increase balance million, revenue XX.X% originations, it’s deferred most
to a XX% EPS, strong increase basis. linked QX on costs covered to from million, quarter driving in while an Our provision PPNR XX% $XX up $X.XX
increased yields basis points Turning the now drivers. our Investment quarter from X.XX%. X to to interest prior
a FOMC end basis when loans most trend was overall the were basis-point on received taken quarter ofX.XX% the Total during yields XX quarter. points at XX yields declines by funding this one-month to subordinated Company’s basis in an quarterly is Interest-bearing reduction reduce across spot our quarter to costs rate by are yield X.XX%. costs including total cut higher quarterly the funding of non-interest-bearing fell after However, of yield by than prior toward in PPP points the to loans from expect portfolio points, deposits X.XX%. QX environment. of year, average quarter immediately spot basis considered, basis March. Prospectively, full The to the the points due declined rates offset XX XX as mid-quarter twice borrowings. at rate basis deposit by the on partly the debt XX decrease of of XX points. basis funding due costs Yield all sources points mainly we reductions XX shown the by basis of the rates proactive deposit lower XX total issuance points to rate driven Loan our benefit average, following rate and types, steps The end of spot loan decreased deposits in LIBOR
lower substantially no at business the million, as a expect model, up Demonstrating debt We interest or rate actions $XXX.X of rose a quarter, during XX% flexibility these XX.X% have are million environment our year-over-year. further funding income net to costs during anticipated. levels transition despite to stabilized $XX the to QX
loans, sheet during XX QX eight in loan $XX we SBA costs. points Our asset quarter. PPP PPP the origination forgiven counteracted interest million PPP We Of reduce balance X.XX% costs, SBA yield an our steps offset as were estimate interest to in PPP interest the the resulting $XX.X X contracted immediate funding points, improvement X.XX% million by fell in LIBOR. fees and to within from during loans coupled earning this sector. the margin and in growth months taken bearing be from equal strong origination the our origination. second was in received of the yield quarter, of a net was basis supported one-third but recognized decline net margin Net or will cost basis loan recognized, lending deposits with of of as fees of prime most in
on continue quarters. the three outsize future our two downward has variable increases our of cash loans and be reserves loan as take With the our -- Our notably is have to since on declined now rate NIM triggered. largely expect as XX% are growth until year, and deposit been a portfolio fixed over mounting profile which benefit pressure with liquidity we regards excess deployed, rate will and asset we sensitivity, can any to floors will place behaving last risk rate from asymmetrically positioned to
parallel risk income net basis-point rates year, estimated X.X% Our XXX the over project at we higher now next of net in zero is change net income move if interest interest lower. and shock
our linked-quarter On which improved ratio now efficiency. points to our operating demonstrate XXX to our Turning leverage. basis efficiency XX.X%, to operating basis, continues industry-leading
and and travel to As mentioned fees efficiency a noninterest on decrease $X.X development XX% QX the related is net been interest, ratio costs earlier, have XX.X%. related loan loan would a XX% reduction costs. in for deferred increase originations, in an expense expense million deposit PPP PPP compensation plus improvement Normalizing in of for the and
to locations has from full facilities. that us branch-light we to production identify loan flexibility model our service transitioning given Additionally, are two offices
pre-provision earning at underlying points X.XX%. to increased power ROA was flat and core X.XX% Our from remains the basis XX prior net assets strong return as quarter revenue on
While industry-leading as sheet hold watermark significant to we fund performance. is elevated management expect a maintain the liquidity capital growth high we flexibility margin, ongoing X.XX% we down or credit any a the to will provides balance continue believe This actions demand. will
provide our $XX Our momentum fell position with during deposit growth billion ratio at in liquidity loans billion balance meet increased to us sheet funding balances of to loan continued and to deposit to to as billion $XX.X to deposit $X.X from XX.X% QX this continues brought capacity as quarter-end. all sheet quarter up XX.X% strong $X.X the balance billion our The needs.
increased deposit outpace expansion. growth as credit to position continues cash billion $X.X to Our
we While million ample the capacity resumes. as this this margin bank good total inventory to support capital ratio. level by demand growth of debt we provides believe during growth bolstering near-term, to our subordinated quarter, credit impairs with for Of issued our the $XXX trajectory ensure us that note,
over value vast $XX.XX, by $X.X was XX% the loan of share tangible C&I over prior The Finally, in loans billion majority in the increase $X.XX book year. of per quarter or to increased our million. increases loan $X.XX prior growth the an loans residential construction driven loans Residential while is million to of trend at comprise portfolio, now concentration of loan loans loans. of $XXX total continues now our billion, X.X% and $X.X downward X.X% and consumer of and of $XXX to construction
growth capital grew line lines affected call from were QX loans, draws Excluding downs loans PPP Innovation flat $XX on Highlighting offset while by Tech within saw borrowers increase draws, construction. by growth the was XX%. total, by their which grew focus assets, and risk residential during $XXX to decreased million. and loan subscription low million. growth reducing growth. to million down XX% utilization $XXX category, Mortgage continued loan $XXX $XXX our and was rates million, grew in mortgages growth And in pay warehouse funded compared in repaid as & deposit and the loans residential Corporate finance loans was QX from our million, line we in fully
the the capital million the market and increased contributed both We grow billion deposit value billion, adding up our quarter driven raising non-interest-bearing to to-date money and comprise our long-term by the ability active. increases growth key now activity Notably, to grew core or our $X.X which continue Innovation in and Tech $X.X savings the than $X.X base. in DDAs year. as quarter, was driver XX% loan-related PPP Deposits to $XXX total value & annual profitably year XX.X% by creation. in of deposit of growth billion $X.X firm’s believe billion, deposit is over deposits HOAs of any previous of $XXX the million. second differentiator calendar Company million, accounts and grew growth is deposits $XXX higher deposit were to during
Excluding $X.X would PPP-related or billion growth been X.X%. deposits, have
required line that sight of are downgraded were liquidity. not to deferral as to as & asset however, mention Innovation from portfolio. Regarding loans of previously made loans modification. quarter. for us SM they with million clear $XXX increase our we $XX Generally than borrowers quality, six do rating of loans increased discussed and consent prepayments Tech in we operating during million have hotel rose these are One loans loan These special remaining consistent half guidelines, non-performing months the current, more a the the to
in provided borrowers agreed with segment or XXXX. paying cash sometime that in Our no are the payment other payments deferral also have coupled until requirement as additional when service the debt
the group and planning social moved events. in exposure the to has of Second, dependent we have million resumption total non-performing. on been Of this million $XXX business models $XX special in to aggregated sector, relief are event which $XX and some sub-segment million the essentially an cases, mention to distancing leisure and
collateral over move sharply limited to special mention liquidity. current to The has it loan a the to where migration These remaining client because our revenue have of concerns, may an currently tightened. been remainder considerable. though the granular The downgraded to year was as nonperforming of of that spread move even from Frequently, liquidity, had the been our is loans portion be include throughout impaired. has may models metropolitan SM While generally has downgraded liquidity loan now collateralized real be by FM markets of liquidity property. assets are coverage array a
correlation special to to less X% five mention as to a credit has the has over migration than reason, ultimate charge-offs. past through low years this moved For losses
Revision Our million $XX.X $X.X million as of the net during outlook including allowance to charge-offs. for of covering sheet outlook a the have for million, declined XXst credit losses reserve reserves balance April change stabilized build. March rose net to and which $X.X CECL since have in changes quarter million the accounted released $XX the of macroeconomic generally for mix entire but the since assumptions, accounted
and Company’s current economic of loan of losses loans, environment our Our future basis increase related $XXX credit was the best of government estimate funded million, the as quarter-end, reflects impact securities X.XX of an to excluding allowance of build % migration including held-to-maturity reserve The points. XX actions. stimulus or programs
it Net were for loan quarter, have management’s chip credit banking migrated loan ACL companies, largely expense consumer blue and economic million result funded outpaced of In Ken. loan losses. to Relative business total recovery. the to lower during of to borrowers. C&I losses total loan lower loans recession tracks mainly all, net QX increased recognized losses I’ll to the X.XX% consensus small continues our view charge-offs. to $X.X now in XX We in the turn other to a exposure million back to attributable call of forecast a were economic as and outlook, basis significantly provision most as $XX.X which points
