Jeremy. you, Thank
design recently the I the we review evening. conducted, did to last determined maintain not performance disclosure that and financial review our quarter, Hilltop want Based made for Before review we upon the quantitative determination to in certain effective allowance losses internal particularly factors. estimation considered by control relating over factors the aspects such for of for the qualitative management loan qualitative process, support
constituted control Committee Board XXXX. Directors deficiency Audit a material this concluded that of the and of December XX, the of weakness as Management
not expect of As of the do date financial our this a we release, result control of in statements. to deficiency this press consolidated restatement
We an and expect concerning XX-Q fiscal quarterly for XXXX include for reports ended on amendment March quarters XX, XXXX our Form to XX, year and XX-K XXXX to December this material weakness. to report disclosures the file ended the June XX, on annual Form
that of identification control anticipate on PricewaterhouseCoopers the this reflect weakness. will report material of the we XXXX XX, addition, In revised at our financial the reporting to December be internal over
the internal control and and internal weakness Hilltop progress made Management enhance of its maintaining going environment committed material management internal and forward. the our aforementioned above strong described to are Board and a control environment. of has implementation and our has remediate Directors control design deficiency evaluated controls to updating significant
I five. to am page moving
$XX.X share. diluted for quarter discussed, XXXX third Jeremy attributable per of the income of to $X.XX reported million Hilltop As according to stockholders common
quarter, remained third the recoveries net losses provision the to low. included During quarter approximately XXX,XXX the loan charge-offs for as
$X.X a net the During represent prior the of and accounting the quarter. pre-tax current assets related were deposit impact million million for other acquisitions. purchase third to purchase intangible quarter in the expenses resulting amortization accounting largely expenses and of accounting to $X.X $X In purchase revenue related with period million
scheduled quarters. expect capital XX.XX%. as accretion, XX.XX% to quarter $X to $X X balances average million to loan interest loan related period of and and Equity portfolio Hilltop’s remains we the accretion leverage ratio the a between the Tier over of purchase income decline a next end ratio with three Tier X Common strong million continue per position Regarding
versus lending the in including interest accretion. six, the increased in the by $X.X held X% income quarter equated prior warehouse million income page loan $X million interest net our to in driven growth sale same or $XXX for Moving net quarter loans in The national third the growth and million year. of Net to income was interest business.
do by portfolios that more cycle. favorable the as conditions loan mortgage of expect will the traditional to seasonal these impacted Both We both the begin the into of decline these mortgage were moves portfolios quarter. business positively quarter fourth during a during
quarter. X.XX% the the by margin interest versus to year. X.X%, in net same Net to third X margin interest pre-purchase taxable equated the in accounting point basis The period which equated prior equivalent declined
points equivalent sale yields by On lower bearing resulting increase a held a for quarter X deposits. and basis basis, X basis linked interest margin net point accounting, declined to pre-purchase in on loans interest taxable
held points XX points, interest XX-year rates During third margin directly began the more average yield and continue for year. to the basis interest third the Overall, long-term XXX that earlier by pressure putting loans quarter the during the quarter. decline quarter on in basis on during to dropped sale rates net
average third by Further, will fourth points, on during year the pressure put for yields sale yields expect the basis downward quarter. quarter, to XX loans declined which we continue during XX held
begin cycle costs, the levels third decline that quarter pace and to reached believe for over do relates will bearing interest it deposit we to the modest rate the portfolio As this quarters. coming the interest during peak
lower of held early yields beta competitive margin given will combination lowering year and the and lower lower the With expect for interest net rate we in remainder cycle pressures, trend the this for XXXX. sale deposit into rates to of loans continue
maintaining outlook margin points. of range, interest accounting factors X.XX% the of our these net or full us year X we are outlook end lower plus could basis While our average pre-purchase minus move
Federal future the of will rate curve We outcome liability Reserve our revisit on continue flows assumptions based asset portfolios. across and movements, to yield the shifts
I of page am non-interest moving Total quarter to XXXX equated seven. million. third for the income $XXX
fees quarter the Third $XX of income quarter versus million third XXXX. and increased mortgage-related by
quarter XXXX, mortgage significant driven during the at points third XXXX. third aforementioned refinance decline quarter. the by times in rates below fell During activity environment by the This the year increase year prior of the basis principally banking to in decline rates, period a quarter increase during of volumes which the as in XXX the XX in billion $XXX million from improved, refinance drove $X.X
sale on the points they as for outperformed the increased for quarter basis margins XXX expectations to Gain period. our
gain market Regarding rates actions throughout XXXX. taken balance given agencies the the current sale competitive of we dynamics recent sale on trend that our pricing mortgage and by on margins will expect lower the margins, expectations on gain
conditions million increased both structured and markets finance sales a businesses by income the mortgage-backed capital in Securities. driven XX% at securities Other market increase primarily resulted in and Favorable Hilltop in improvements finance structured in by $XX activities trading volume.
to rates, and continue provide the be they is continue ongoing of trends. our liquidity we volatile XXXX. to structured investments of And we to realize since distribution third to the interest overall production are capabilities will making these businesses by can believe benefits the important these that have from been while benefits recognize it market investments and quarter as These impacted businesses improve period-to-period
page increase Primelending. eight. strong in fee compensation same million increased increase by compensation period to an growth moving in prior $XX and versus $XXX quarter. million. year prior-year variable the in the million and the expenses Hilltop $XX am to of were Securities revenue to Growth Non-interest variable This was linked the in I from of expenses by driven
continue have to across and the against services continued the Over in -- expenses compensation, costs development over we current last to aligning make businesses quarters professional progress the six trend efficiency these we marketing and past market the and Through efforts progress conditions make driving objectives. lower to franchise. non-variable headcount, our our efficiencies as
related third to $X million incurred costs quarter, in core ongoing During enhancements. Hilltop system the
grew versus or Total ending XXXX. a prior mortgage Growth strong the the HFI page approximately Lending third same quarter experienced million year -- in driven basis. $XX by period loans nine. in to our versus by business, of average balances which Moving linked-quarter growth growth by the quarter $XXX grew Warehouse million X% on the in was
average growth in the Lending and underwriting, downs, loan HFI grow XXXX. full quality portfolio, year-to-date will average current the focus X% trends, and our loans on pay production to the high Warehouse competitive Based national scheduled year the expect conservative in current environment, on we now seasonal X%
non-performing through quality top as third previously of the in year. as we declined the XX, right bank from million slide, of page to Turning quarter same and period maintained chart the XXXX, assets on the credit on the has $XX noted, the solid prior shown
have few with last the begin flow are market cash emerge our we becoming seen the in lending to energy liquidity some portfolio overall weakness performance months, Over energy strange. as in coupled sector
commitments outstanding for were balances investment it or bank’s approximately As portfolio. the X.X% to approximately total total at energy loans relates [ph] total loan, $XXX in XXX held million loan of lending,
equates The is quarter to provide third that to loss the future bank’s for XXXX. ratio and these pools the to coverage of allowance do loan purchase across It end the losses. basis discounts at additional important loans have points HFI of discounts remaining against loan we XX note
remain. by increased versus third of XXXX million the $X.X XX, deposit point page pressures basis XXXX. rising to costs stable, billion have relatively total were second and remained quarter have of by $XXX Turning the Interest-bearing X approximately deposits average from as quarter competitive
deepening has the show As clients. we bank able steady on graph, been our with continue our continued of to focus -- as relationships shown the in on non-interest-bearing growth the deposits
to Turning page XX.
Quarter’s improvement reductions Bank versus benefits XXXX, demonstrate in the the of national continued income growth as of During quarter as the results to pre-tax expense profitability, during well third $XX quarter. prior PlainsCapital of generating solid solid in the million lending, year. warehouse reflect
Total of $XX XXXX. acquisition of third of versus lower period, expenses non-interest included and in declined XXXX of Oaks million The premiums. cost, loss of non-recurring lower expenses results the in driven with by the share transaction note, the prior $X.X expenses operating by River million XXXX quarter elimination year Bank the related FDIC associated Of August
$X.X on quarter. available the be for Also during the certain the securities portfolio The proceeds million securities. sale losses quarter, of the fourth the of bank sales did sale of recognized these will in fully during reinvested
great and to The and focus moderate a risk profile remains provide leverage, positive profitable of efficiency. while PlainsCapital revenue, consistent, expense operating our drive maintaining while balancing growth delivering clients, service growth,
conditions Gain generated secondary market year XXXX, pre-tax profit Turning origination noted the has strong of to strong supported XX%. PrimeLending quarter a of million increased page $XX volumes XX. earlier, or the by driven as improved prior $X.X billion that margins for on improved, from third profitability. sale by
as and across had has rigor volumes focus The to PrimeLending increased back around operational operating and efficiencies to other profitable continued the solid origination the on generate focus to weighed loan maintained efficiencies mortgage has and not focus office on staffing, new platform. successfully PrimeLending mortgage our system. is launch expenses overall middle While volume, for
improved markets by driven pre-tax as in structured XX. of and which from delivered both a distribution, million businesses, and ongoing the page sales well conditions. Hilltop for finance third benefited structuring, solid to XXXX, quarter Turning market the in profit our of as Securities $XX has execution investments capital
be was activity volumes these from rates, both spreads volatile from strong market change and period-to-period. in results can as significantly quarter, of can While the businesses
by are by the prior -- by and versus and in grew period the public strategically client invest growth in $X.X support million to banking, long-term to to net expansion we same continue franchise support grow Related bankers year revenues our to acquisition. hiring
and the The focus risk moderate profitable of within optimize grow is Hilltop liquidity new deployment core system. market a Securities managed to risk and profiles, for operating expenses, revenue, operating finalize
recorded Prudent for our focus losses. severity claim-related the a XX. storm and our pre-tax page million in of Lloyds and growth $X.X for which National frequency markets to remains XXXX. a core reflected profit primary activity Moving quarter, lower
Moving to XX. page
by full Lending year-to-date, are to in during outlook the with for XXXX Warehouse X.X%, increasing National For that fourth performance to expectation year business driven we seasonally year outlook the growth growth loan our decline strong Full quarter. deposit balances average an remains consistent. begin average
Lending our we as interest balances held for are within in a loans sale balances XXX% Also, year, range. National result Warehouse increasing of net guidance income growth the to include higher the for
higher businesses, results our and outlook conditions. our the To improvement reflect in income of fee market reflect three in the the during first we to XXXX are strength non-interest adjusting the quarters
expense continue Our outlook expenses variable range our to business. is as revenue non-interest be correlated projected higher fee will through
with This expectations remainder respect current as and of and overall going to on activity. will forward. rates may outlook economic our change quarterly updates the represents market we the however, calls These, necessary provide the year throughout
update would provide standard for adoption of of on allowance commonly as In like addition, and an projected implementation impact the losses, we known CECL. credit to new for assessing accounting the the
approximately million Based the economic unfunded quarter combined third of estimate our reserve and of credit plus credit our portfolio, to scenario, This losses, in range reserves compares expectations on XXXX for be the million. prepayments commitments $XX in current the the the of assessment allowance our risk the we $XXX of will base as for outlook the of million. of $XX to
X, quality in affect this of factors outlook implementation XXXX the portfolio, and as range the We the throughout current the will economic January work will assessment, ultimate XXXX, remainder continue the towards other to that assess credit and the we date. assumptions
comments the Q&A of section the over concludes call. for call we to our turn and will the you that prepared Operator,
