on Thank X. I'll you, Jeremy. start Page
the to approximately negative $X.X first Jeremy equating asset. of related valuation $X.XX Results to quarter million $XX.X the As stockholders our to million, diluted share. first quarter adjustments include of of discussed, Hilltop for attributable income for reported common consolidated XXXX, MSR per
sell to of of million by the loans. March of valuation MSR $X of backed LOI signing $XX the sale covers MSR the XX. Approximately conventional value relates of an to mortgage the million of as adjustment all LOI approximately
PrimeLending the exposure the deem that small -- the to in sale MSR asset, appropriate a Hilltop. bulk we to on when view is will execute retain that we've sufficient not times our to and we our cycle, remains of MSR MSRs and asset overall strategic certain product at noted As limit that the for we may through a balance sales will we past, the maintain support sheet. to asset long-term choose And while will
includes for December net scenario losses credit Hilltop the million of the charge-offs XX. March of of improvement the from which of as allowance a and driven release in million allowance, addition, reduction reported $X.X the million, of XX, largely $X.X $X.X In net a by economic
QX built leverage the The of loans losses and the to the Moody's mild an as of ratio Hilltop continues the resulting a of is the calls of the key recession X. Turning timing March predicted will At to for XXXX. release XXXX. to begin in for Page in XX/XX, $XXX impact a Allowance for scenario, begin which the of ACL shift to recession to total scenario quarter of XX. in X.XX% credit first that SX driver first mild recession HFI of the reserves quarter. economic million
the by the for credit introduction trends outlook continue losses time. As the loan the changes since be be in CECL, believe and future net and we credit portfolio, macroeconomic could volatile that in migration allowance over will allowance to we've the changes driven the growth stated to of
for quarters. coming current interest inflation, the the regarding unemployment the rates, uncertainties and growth rates, over outlook GDP future Given be heightened could volatility
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noted As the that with we continue quarters, to significant most exposure portfolios. the include believe in risk loan our office prior retail segments and portfolio for the nonowner-occupied potential of
these table, X%, at was at the higher million and in December maintain $XXX provided is is ratio portfolios of ACL aggregate maintained totaled what and coverage modestly it an March which XX. As XX
Versus $XX deposit equated the year to XX%, by Moving income by or in income driven to million $X.X the Page ongoing including accretion. costs. interest Net of net million, decreased period, purchase of increases $XXX the first accounting quarter X. prior primarily million interest
and quarter, last with relatively our yields stable, consistent remained the the funds rate. Over Fed securities loan, have cash
We remain to XXXX. to very pressured and competition throughout causing of remain expect deposit continue for the NII NIM intense will the the year, remainder
meeting. reflect expectation reduction that their the Our estimates basis executing for our rates will stable maintain point and XX December NII XXXX, until future NIM at single currently a Fed late
to X. March highlights at page in the Page liquidity left of Moving available table The sources upper XX. the
$X.X both in of window, uninsured available billion, that uncollateralized, liquidity deposits of including equated Hilltop excess period to approximately discount maintained billion at period end. the well end, the Fed are $X.X which and As of
prior As drift in deposit that XX% could and we expect continue cycle and betas end updates, between to XX%. modestly noted higher we've quarterly the do interest-bearing will
rate XX%. interest-bearing cumulative the XX, of As March beta the was portion cycle for this of deposit
XX. Page to Turning
$XXX deposits First quarter balance On $XXX the ending and by quarter prior-quarter to X% million fourth of level. average by million basis, $XX.X $XX.X versus declined are balance ending or declined an approximately XXXX. from total deposits approximately billion billion the
Page XX. Turning to
deposits is by for $XXX sweep during bank $XX broker-dealer matured chart, As the levels. Adjusting million period. in items, brokered period-end the $XXX rose XX which million deposits million and CDs, highlighted these the of December returned from of
the customer While are the we're interest-bearing our new growth market see the cost bank. growing, into been deposits moved preponderance that have in attracting offerings. of top our higher checking has In tier our money centered to pleased and deposits particular,
December result, the as of to a March points up As XXX at equating XXX basis points blended continue with costs total to basis deposit rate the rise, from XX. XX, interest-bearing
and maturities of Further, of retaining CDs. expect and do the competitive we our on growing provide on in maturing and overall as will continue focus our the the average rate coming Given environment the lower detail the we CD costs portion increase over that to page, current deposits, interest-bearing to those the customer deposit table our quarters. some
first income to 'XX quarter Turning million. of Total $XXX noninterest XX. for to Page the equated
decreased and XXXX. versus first $X by mortgage-related fees income million the of quarter First quarter
in both origination stabilization declined per Although early fees relatively the were levels. with in loan which total signs mortgage stable and revenue prior-year we have period, seen the of volumes,
While volumes modest neither revenue have describe nor as improvement market, recent. of home origination we levels would in seen a reflect inventory we strong what
have remained However, the volatile in XXXX. interest second throughout and the rates of early first quarters parts
continued revenue the quarter's business to that a payment the and pull-through lower at Further, offset improved continue while rapidly Structured on gain has market per volumes, trading versus we've dynamic shift our from market increased secondary of This prior levels.
Other loan seen of states rates The Finance levels by the related the prior-year largely strength remain predictable strong revenue to specifically until sale programs. period, by HilltopSecurities. improvement Structured in will assistance certain $XX.X improved lock volatile more lower million their at and activity likely income down of fees. primarily stabilize been will interest driven volume margins, in are support origination Finance reflected
see place. For likely and in ] the [ further have business subsidies states, will depleted activity been a put most in state until those are subsidies decline
be recognize as Structured payment period-to-period remains services down programs. production overall which their Finance market interest liquidity, they are by support fixed can the at may rates, states volatile It impacted HilltopSecurities important to both trends, provided in by to income the include additional volatility that assistance businesses from and subsidies
prior the Noninterest relatively year. to stable XX. from period Turning Page same expenses the in remained
declined occupancy HilltopSecurities and by costs, driven versus costs modestly across period, moved modestly clearing and services-related professional higher, other expenses compensation, the While expenses [ quotation costs prior-year including and PrimeLending. and servicing and production-related ] tax
to offset ongoing we compensation continue and remain in inflationary persist improve forward, franchise, support to across headcount our than the ongoing expect expenses lower productivity, streamlining efforts relatively pressures market. as other and Looking the operations related to variable our helping throughput improving stable focused will that the
Moving to Page XX.
average prior-year-period quarter billion equated First $X.X [ loans ] down in HFI $XX to XXXX, from levels. million the
driven challenged, that to the require thresholds. overall, market in more investments loans the borrower's by preference debt commercial quarters, underwriting requirements at funded market upfront leverage As and demand current structural prior new projects we've for rates to combination noted remains meet key and the of less equity
retention the for Given retaining coming to mortgages of challenges, the these expect quarters. ongoing and during on restarted originated quarter the the we balance these first months continue sheet assets and
will the securities will including driven guidance of be the the a return to loan but X be commercial held and within mortgages, per profile of by of investment options, future current million month. $XX retention level The comparison factors, value to other combination levels of long-term demand,
Turning XX. to Page
within migration During the commercial the nonperforming noted nonowner-occupied assets increase relationship period a estate our noted that real fourth negative was we total a driven by and the portfolio. quarter marked in call, during largely client that increase single of
engaged to to sales decision potential do and this of disposition at a time. and of not loan the During process held the sale move updates That support as specific continues to management this sale we first the for this the organization have asset any disposition loan to final services made quarter, loan. this
has credit generally Overall, quality solid quarter. the first through remained
However, loans set that to locations a industries charged amount the did and moved were period, a sale. represented experience the of to of specifically discussed charge-off for higher charge-offs includes and loan a level that related during addressing held we earlier was the disparate off
any prevailing that portfolio. outsized see not concern do in we cause Currently, us trends our
slowdown monitor certain activity and very and higher in on our the rates, the we However, expected portfolio. could as negative closely clients real potentially all of economic to continue of have impact estate aspects utilization portfolio rates an commercial a lower in our segments interest
As quarter ended at on the bank warehouse right loss page, the including at credit lending. at the is X.XX%, bottom graph shown the for of the the mortgage allowance first coverage
I'm XX. Page moving to
inflation lot into the As work the a of to team for quarter overall there the delivered of and second company market to with XXXX, uncertainty the regarding the these. of economy. that like in our position be our we rates, move pleased times health continues interest has We're
delivering to we across teammates customers a profile focused on our moderate our great franchise, And customer the long-term communities and our our shareholder supporting to where new serve, delivering risk remain value. franchise clients, maintaining attracting service
business updates to XXXX will on and As is market respond, assessment we noted in we calls. we adjust and current economy our the for markets quarterly table, our the Further, of outlook changes, where reflects the future participate. the our outlook to as provide our
and we'll turn Operator, call for the that section comments, to of concludes you our Q&A back prepared the the call.
