five. start Jeremy. I'll page Thank you, on
attributable the million, equating $XX reported $X.XX stockholders income discussed, As of Jeremy per for to Hilltop common second of quarter share. to diluted XXXX, consolidated
deposits During higher the offset business, provision ongoing headwinds by interest in expense. net year-over-year, quarter, income mortgage cost was of the increasing growth and the
in the allowance to by with allowance, further Detrition turning portfolio $XXX six. million. to build growth $XX page increased the macroeconomic of address change collective outlook, To the I’m quarter credit for coupled quarter. the million Hilltop’s impact changes allowance resulted in for in during the losses and loan
HFI losses to of million, XXXX. Allowance XX, credit for of a of ACL June $XXX ratio builds total as X.XX% in loans,
mix time, assumptions, as and as As ACL economic seen it the as credit by impacted portfolio. over in changes make-up well modeled is of the be can we’ve
credit driven losses for outlook changes to in be that by the the volatile, loan portfolio, trends time. future macroeconomic to to in migration growth the the and could net changes the credit allowance over continue and believe be We allowance
Given interest the the rates, for and unemployment, quarters. current over could future growth volatility coming uncertainties regarding the GDP outlook heightened inflation, be
I'm moving to page seven.
allowance portfolio, to For detail the little CRE in loan more our key our wanted the a distribution segments. quarter, provide some of we across
which we and For owner June XX, not billion, segregated $X.X the in totaled real or investor CRE owner-occupied portfolio, the estate.
noted view business owner-occupied that Non driven repayment just lending, owner-occupied hand owns types. C&I chart is the estate up in the right diversified book, as upper operating and of we the real like most the the more real income-producing Internally, part by across real makes estate and CRE property XX% is multiple for estate. is
non-owner-occupied the in the and retail loans the table a to the by segment of lower high. provide portfolio left, In office, in within highlight breakout coverage ACL differentiation we
portfolio. office the our to recession, markets and highest represent the retail the Our across and is absorption view in footprint today both risk valuation that exposure
larger non-owner-occupied other see As segments such, maintain ratios you coverage can that estate and products. ACL real loan those
monitoring flow and challenges cash entire systemic closely That risk portfolio as have and quarter. and the seen existing migration the ongoing that further the any of not over projects, We lead ongoing second interest expect facing could emerge given rates, are said, time. higher currently to new credit we do by inflation,
benefits rate $XXX yields the second $X were and balances. increased prior in securities net higher income equated purchased to million borrowers. loans, driven cash These and by including deposits of higher interest quarter Versus by the Net accounting rates $X.X eight. on by primarily interest income accretion. on variable quarter, year million million, second largely X%, page offset or into Turn
basis we basis cash billion. As the $X.X margin XX balance this the declined versus note, was net points the average attributed by of interest levels by expected, be to to basis change XXXX in quarter our points XX XXX points. approximately cash outside can or first quarter, approximately Of of
fed decline and the and Our ongoing of outlook where XXX Further of the competition increases, the quarter. our to quarter with end current deposit third fourth scenario and and reflects moves cause a funds by remains third during could year. for XXXX of stable NIM the NII rating XXX balance the to coupled between further
highlight we approximately $X that Turning of of to Hilltop the nine. chart available billion sources the as liquidity XX. June page In the maintained
our discount a is source our plan to noted under program we we efforts, such do borrowing Federal internal other leverage as collateralized to it window Reserve's consider and that liquidity modeling the sources. not be liquidity, While of below
equated year. liquidity $X remained the XX over relatively half December and sources first as of throughout stable comparable the of just Further, billion to
As of is at excess $X.X reserves maintained chart, billion Federal June shown at Reserve. the XX, the in Hilltop
billion we the in the $XXX sector between lower cash Given our are the to the last Reserve. and and revising $X.X months, stabilization banking Federal at weeks target over
the We year-end. to throughout these expect levels maintain
today, Additionally, the short-term interest-bearing left Federal our Reserve beta view detail future the for the under rates in note and in chart, deposit of changes provided to changes higher. and move rates that the expectations bottom some continues pace deposit we
Moving by from to are balance XXXX. versus XX, $XX.X or On to billion, an of increased the the approximately quarter ending page billion increased $XXX deposits quarter. million $XX.X average first X% deposits total quarter second million $XX prior basis, have by approximately and
will $XXX move at sheet majority A and million Of in clients. to our products of that rates back approximately balances to balance at them business balance sheet get we're of for balance in on are deposits year-end, these remain diligently management customer our note, wealth competitive by PlainsCapital. working mature large off
the bearing stated efforts, points increase of for It Reserve of higher move balance of prior an will updates XXX points, increase the deposit our our result from a costs expectation that the basis bearing our rate path XXXX on pricing interest interest of approach. quarter. to pricing XX basis the the As ongoing to we deposit rose costs from made potential given views Federal our and is
it focus we continue competitive while deposit our of remain As we focused interest the relates and balances costs, prudent time. long-term position on with over balancing relationships, our customer net to to on manage
environment pressure expect to continue However, of in the the as and intensity will short current we competition remains earlier, terms. noted the and rate higher challenging medium for deposits
Now, Page of non-interest quarter $XXX Total XXXX equated the income to moving for second to XX. million.
of by price combination fees supply of XX%. by housing decreased the challenges volumes by over Further, and interest billion related year, home the versus U.S. versus or in driven the inflation, ongoing ongoing $XX margins XX% second volumes mortgage refinance by quarter the of rates, mortgage quarter lower. across banking by and the quarter higher or second and income mortgage and $XXX materially limited million prior mortgage terms in Second driven decreased decreased $X purchased that’s million volumes capacity originators ’XX,
with loans ‘XX margins XX to for signs second to increasing parties sold XXX stabilization, the further During third quarter showed points. basis gain-on-sale basis of points of margin gain-on-sale
are see margins gain-on-sale the remained very modest pressured, to While court. a we pleased rebound during
will will as in likely not and a We constraints capacity expect full recovery margins slowly straight and occur that line other be industry remain. a
finance trading improved volumes Lock income by increased ‘XX Hilltop primarily prior while and driven TBA the in levels revenues positive results this in structured mark the result the quarter the $X.X businesses to second quarter our of million, fixed the modest from on Securities. a ’XX, of period. negative Further, $X the $X.X activity mark as quarter by increased included income stable year substantially reflected pipeline billion million remains Other at a during second
volatility by important As and market noted production to Hilltop interest we've period-to-period. it's income past, structured finance overall liquidity, can rates, in be are services impacted recognize both that the They businesses and trends. volatile fixed from Securities at
quarter Turning to driven in by the million. to The in expenses year's second which decreases from variable Page to XX. lower by prior same Non-interest to linked in the compared the $XXX the same million prior expenses the generation versus year decrease period at decreased and $XX million $XX the in or prior Securities, the PrimeLending approximately revenue was Hilltop compensation year. in quarter fee was period
forward, the count inflationary continue streamlining compensation ongoing our Looking productivity the stable variable throughput in to expect we support market. improve and related expenses the lower improving focused to the our helping franchise, efforts and relatively remain offset persist of head operations and across ongoing to pressures that as
XX. Page to Turning
by lending Second improving the levels. to warehouse basis, by period growth, real $X On first four mortgages PrimeLending. quarter the a to loans $XXX of of with loan lending by HFI commercial quarter first family estate average, retention billion, and quarter XXXX equated particularly loans in commercial versus stable originated grew mortgages driven relatively ending million, HFI one
slow We loan levels family expect of growth one year retention four continues second in commercial will activity to that the as decline to lending contract. half the and
expecting ‘XX, mortgage excluding full warehouse loan lending average, from are X% zero the we retained any to growth mortgages year PrimeLending. during of and Currently,
to XX. Turning Page
a in paid quarter. has to see a of second second quarter. was credit period we did first million the credit July. subsequently higher single NPAs during by This the change in slightly early largely the driven quarters, number For in off downgrade The move $XX
concern on do in in and has are higher prevailing not expected certain portfolio, the closely, real Overall, as that our the outsized and clients watching our and remained while through rates of impact interest portfolio trends utilization our economic we potentially quality an causes second segments rates, estate, credit on any see solid we activity that an lower a commercial portfolio. slowdown have negative quarter,
including loss the at warehouse at the credit in graph of the shown bank the quarter X.XX%, ended mortgage the is right the lending. allowance second page, coverage As bottom for in at
communities as XX, interest in quarter rates, regarding delivered work the uncertainty remain like and a be third and focused great there Turning overall has we where these, teammates customers risk delivering of our ‘XX, serve, position to to times to continues our our Page delivering the long-term with company pleased attracting for health on that the supporting to We're of market the franchise of clients, maintaining our profile, customer moderate our economy. new we across team our move a lot to value. inflation into service franchise, and shareholder the the
XXXX and outlook we As is economy noted our in the table, the and our to current will of the current quarterly markets where provide business calls. to adjust our on we participate. as respond, outlook reflects changes updates our we the for Further, assessment market future
for prepared comments. section our call concludes that the the call. Q&A of to And turn you we'll Operator, the back
