you, Slide on Thank will Jack. X. I begin
year-over-year. $XXX.X on million, modest loans. compared previous was loans an quarter which quarter increase an $XX.X quarter. of allowance a the down are losses million credit year strong increase quarter XX down from credit million on losses, for $XX.X points comprised of second million points and XX% was basis excluding basis million increase marked but PPP second due strengthen XX credit revenue $XX.X and the We were performance, On $XXX.X which charge-offs, by an $X.X an net linked three ago. by the of million, further X% up $XX.X in operating or losses of basis million of with PPNR, of for third quarter, was points in a from loans of highlighted for to $XX.X an linked Provision to at million, quarter improvement decrease expenses, pre-provision pleased our XX% financial X% in increased to net allowance total provision basis the The to and the
second portfolio significant baseline X, economic provides as $XXX The see allowance forecast, the and our September. we at coverage than allowance scenario the the the quarter. charge baseline XXXX, as points, XX uncertainty As offs with losses upcoming most by adverse end associated ratio year-end second loans approximately you improvement loan extent the scenario, the of it of the or cumulative and The net can key as from $XXX up election. modest quarter, adverse consideration employed the represents which build continued credit at the allowance points $XXX year-to-date and to at quarter reflects for basis status compared as times economic to is loans. excluding well quarter includes by allowance more stimulus third of of The a The more economic total The Slide late segment. since annualized XX more million reflects allowance prepared increased down a non-performing PPP further balances. scenario variables of nearly each six XXX% at on in September basis end XX total baseline break million, of scenario of million,
and smaller unfavorably net a of $XXX.X quarter, portfolio by interest million $XX.X impacted X% X, balance $XX.X second income from margin. sheet or to the loan The lower primarily interest due Moving income million million. average Slide to decreased net
favorably since headwinds which In in and balances $X.X day net interest income. growth were reflects respectively. income reduction result by in in These fees million. note, deposit income lower addition, in also second of the as from decreased a net PPP by $XX.X have billion the Year-to-date, costs million reduced of third net interest $X.X net lower additional the million beginning on deposit million during in portfolio partially period-end quarter, balances securities $X.X basis $X calendar A a net as million reduced the million, from year. quarter, income $X.X borrowing benefited quarter. interest interest which Of the $X.X we an offset average by million billion benefited $X $X.X and interest the income and by nearly average borrowings billion of $X.X impacted related
displayed in costs. impacted consecutive $XXX second to of business fifth of basis As was basis primarily in four continued of driven the margin million by Average basis lower on the XX third basis points. unfavorably X compared the was margin quarter our remaining points marking yields deposit Slide quarter. costs points, discipline than points deposit loans. the The by negative net XX pricing, the downward points effect the offset portfolio total lower interest the lower which XX largest portfolio quarter, The and by new loan this quarter, were second margin basis deposit than to repricing rate yield managing floating eight benefited
one the the day margin PPP and in the impact three point had quarter. addition, third In a third quarter on basis unfavorable basis borrowing three margin calendar a benefited reduced points. collective in by more the
full impact will you negligible [indiscernible] not second loans the the as As the was were in months. the quarter for recall, three
million low activity quarter respectively Mortgage balances while and second at $XXX by by software. funding was origination middle-market and Turning primarily provided X% or XX average loan quarter, $X.X customer balances for and our $XXX million These favorable PPP results real average and mortgage our from period-end mode, from new solid and on second period-end $XXX drove and down balances by year-to-date. Both million the residential in multifamily up by as $XXX close driven continued and balances grew million lower relationships. Balances quarter. in subdued Slide to closed period were down X% $XXX the decreased in ended continued were the driven the robust and which be which decrease the June reduction retail average loans at linked-quarter strong retail addition technology, runoff and mostly estate million, transactional activity mortgage second hardware planned in the balances due in of businesses mortgages, balances period-end X% the than quarter offset from to record attributable $XX quarter, commercial more to customer million by results of demand New period-end and the loans down the loans billion, loans York from warehouse demand portion or portfolio, C&I million The of loans. and is LEAF’s $XXX in X, economic benefited million $XXX LEAF. growth warehouse X%.
million million off we addition, have $XXX year since a for In United and balanced the loans run million, period-end to of end. chosen with decline $XX the June $XXX XX from
for to unchanged. expectation full between Our to million the off portfolios million $XXX each for these run $XXX of is year
billion PPP $XXX PPP June an $X.X as quarter not loans up billion, average of billion $X.X QX. loans the the million On end months on of full $X.X XX. quarter modestly from three up were basis, linked at books were approximately balances were Finally, for these
of period-end period-end wholesale while strong deposits declined billion and of the million of at Non-interest time on were this than for the Moving lower and $XX.X from deposits balances deposits customer the Slide warehouse. the more balances the second than time. deposits in period-end resulted average decreased non-interest deposits total a increased up modest growth, during from Notably, funding the with on account while higher were across for up $XXX period were municipal grew nearly preference particularly quarter. end. deposit mortgage $X.X basis, Average balances now the categories second balances of from quarter environment. commercial and XX% sixth billion end period-end quarter $X.X billion. – all on reflection to balances, decline Average period-end a The in X%. second balances runoff partially Both while decrease offset $X.X Balances year to more by deposit down exception or quarter, The a uncertain of time bearing interest bearing rate from million consecutive X. in X% low $XXX or is economic period-end, up from cost, liquidity for balances XX% billion.
largest loan reflected to Looking management primarily at XX% non-interest revenues quarter The X $XXX,XXX. improved banking most $XX.X businesses. by benefited $X.X activity. customer lease fees collectively the increased million, bank increase Slide C&I income million. pre-payment management non-interest million operating were grew to third driven was up $X.X while investment fees second cash million of quarter rebounded across due by income fees. Commercial in levels $XXX,XXX, and up increased lending grew service or $XXX.X charges, Higher higher which income the from million results and $X.X Insurance
In million. million $XX.X residential continues On the unfavorably addition, a swap for rate in $XXX.X to be other million, The or loans. was by was income income, The subdued gains Slide non-interest interest customer loans. non-interest million commercial primary these higher driver X% of which of reduction of to real increase million increases mortgage $X.X estate offset largest sale $X.X $X.X expense quarter. linked in X, decreased impacted on demand was the up
million The outside million $X.X quarter. compared and million reduction second in $XXX,XXX in and in equipment, following non-operating non-interest and compensation $X.X and third other services, benefits. quarter the the included in we’re $X of and professional cost, to million And expense, $XX.X occupancy a $XXX,XXX of categories,
attributable with point largest quarter. $XXX,XXX operating lower previous Briefly lease The see efficiency compensation in in and the XXX additional higher increases non-operating $XXX,XXX X% $XXX basis year-over-year $X.X modest to $X.X professional million increase offset of non-interest service on expense you ratio. higher increased XX, or these improvement costs,$XXX,XXX in and expenses, can the outside primarily clearly was million costs, the to compared Excluding other to and Slide expenses, benefits. the in million
to continue in XX.X% product As ability very operational focused were of as remained the savings expenses be diligent rate referenced environment. and management operating in particular, is our interest We acquisitions. a leverage forward on positive leverage. in of And enhancing ratio projected earlier, our Jack the efficiency move low generate cost we realize to current from
excellent. Our asset quality remains
non-performing total XX, the driven from loans of was As and assets XX second to primarily basis acquired displayed peer in basis linked offs loans points charge XX prior up C&I average group account, represented percentage XX of top The the but as and up a REO points other below Slide XX points the points by X one an quarter, on was loan. of CRE loan to quarter. slightly and was basis banks. remains Net were two experiencing accounts, pandemic was increase difficulties basis a which our
XX, average return the points. quarter, significant Turning to basis in the basis XX Slide second of on assets points in returns Operating average XXX on a quarter XX% linked XX.X% the common XX third while of operating from up generated improvement operating earnings points increase equity quarter. basis return was increased for tangible
continue for long and our with forma compared Finally, risk holding history exceptional on the strong X given to It compared capital X.X% know Slide management. the quarter-end and Tier X.X%. and Capital strength. ratios comfortable bank XX, again our X.X% balance to we pro important for is sheet at mix is the business diversified loans, ratio company adjusting of leverage for remain PPP X.X% be to structure to
X.X%. have. concludes may happy versus We’ll PPP any questions. we’re approximately excluding ratio, remarks. you for This answer TCE ready the Operator, prepared be X.X% our to Additionally, reported the is questions
