Huntley everybody. Chip. Thanks, Good right. and morning, All
Let's X the phases, banking Live industry. with through and this start on January obvious, major a drivers X really And discussion two the the was a on March in was through And XX state for of of distinct it recap for a earnings quite tale Oak, March to about the March Slide X QX. XX. quarter
premiums environment phase for and and deposit credit March, improvement continued we saw asset continued quality. gain strong customer In market expense sale the loan through in growth, the marks, good on discipline stable early secondary and first
we phase, had second we improvement issues, the our of to we and been of our experienced significant action balance the SVB further industry sheet. customers and ensure market took secondary Signature -- panic the the reversals of safety post experiencing, pricing In saw and
taken netted and the safety all earnings path growth, much quarter, puts strong us soundness, coupled lot have actions improved customer to So with we of not to forward. a our that of a earnings trajectory on to but ensure in going
more but next Slide bit detail each quickly slides. hit here some on into XX, over a get I'll the on several highlights
the of production year-over-year. level production with yield production in driving average in engine highest loan QX in growth yields X.XX% the of Live Oak generate at up continues growth portfolio quarter-over-quarter history quarter the loan XX% and to of billion $X being and X% loan the X% versus profitable Our current
nicely nicely X% The continues quarter deposit even almost up growth disruption was customer grow growth as season. As up was despite deposit April well. March tax still in the and the Huntley through to said,
industry we interest half strong NIM more resiliency a flattening be stress due NIM and minutes, by the loan in detail I'll is get the compression say production and yields aided in of should into on while lower higher to booking now second year this a of our through income our loan resulting the growth, costs. quarter but NIM deposit net the bit of net trial few anticipated -- March, we'll while that the of an in are the
expect are which of moderating and conservatism discussed growth, I the we we leaned here reserves, the year. for provision further as On given environment. rest Expenses provision good the discipline and quarter call, throughout on the consider both the we economic fourth into
the finally, the items, And hit impact next quarter. of slide, in the impacts a pretty of which on those had notable I'll about outsized $X.XX
Turning XX. to Slide
quarter. are X was look marked Let's up added notable for we those a at end largest loans at of In income, at each items, to of that our held take noninterest which $X.XX. fair which had items that the value, notable the
that we current have for X% credit We portfolio, over in a mark that the disruption March, on in swing a XX just our Xx significant roughly loss. days. Given in valuation saw now allowance
So this seems quite conservative.
we assumptions in expense, be $X.X step-up more noninterest of refined conservative million. how our to onetime reserve in unfunded resulting In commitments, a for we
we which in the million, effective $X.X year. resulted of to into finally, had expect we the the will item over course tax XX% quarter, which normalize discrete high in abnormally rate the range of XX% And tax a an
Turning to XX. Slide
the loan vertical, small Our our with of $X numerous vertical quarter in areas. multiple solar and middle-market sponsor again diverse production business across particular billion in strength was areas finance
to on going new opportunities see As lending, for business others pull expect forward. back we good
interest trends on margin income XX. net and Slide Let's our turn to
through detail Given the go more in and dynamics quarter, the a our bit market NIM I'll disruption the usual. decline in this than
earnings significantly and rapid back NIM in the in 'XX of to response pricing be of I about You quarter showed a that the NIM call loan recall may no would up signs in expected downward because in to a ramped on question slowing. XXXX, we that first the our on see year more Therefore, deposit of deposit the fourth half said the half repricing. accelerated the pressure the than pricing
would back In Fed cycle, and balance loan sheet half flowed its near the increase our end we however, expect rate the of as through the NIM of the repricing the year, expansion.
tailwinds which the in are of still NIM deposit stress still are near All loan help the to but with increased of March things year. those true, term. the pressures pricing come, industry in further the should But half the improvement repricing back
continued a a steeper half. to is V-shape NIM given decline way, deposit our different and in growth, our Said expected we XXXX, expected than events trajectory while first in recent customer desire to we the the ensure
However, we second interest the of and income 'XX. in still NIM in anticipate steady net the improvement half
a So just behind points let's I put said. data what few
deposit the take Let's side first.
deposit Fed as information see on top along more Live to reference. and both You we competitors betas, Oak digital provided the for the it relates ending upper rate with pricing that in funds'
the in notice will half you things first of XXXX. Two
half than through with expected was it been quarterly of have XX%. a about beta, 'XX. top Our XX% lower tracking competitors what of the sharing beta were consistently we first our at the cumulative and you betas about with digital savings about through-the-cycle second, And
the significantly. gray competition you second XX% heat the look to QX box. this slide. the higher the started gray much can in half third a started In quarter, of boxes Take in see a as top deposit at X moving XXXX, competitors 'XX, In beta at up on
loan strong Our was deposit supportive of still growth trajectory, growth. and our however, fully
remain remained we and So our disciplined increases XX%. beta at lower rate about
desired however, And accordingly we our quarter, to at In XXX% saw the move in moderation the in up on We to very mid-March. maintain growing almost were fourth moved little deposit expectation our balanced with competitors quarter, top no growth. beta. had competitors we deposits And deposit so up had we QX. our movement moving customer first of in from movements rates pace, through rate
XX up and we to a we move we competitors. rates When and the customer digital savings to aggressively full ahead points basis decided to top industry crisis of the move hit mid-March were in moving proactively outflows, seeing, modestly reverse saw trends
well it a back you see, As to path. can put growth deposit quite on customer worked us positive
modestly here expected, growth track support of our healthy XX% back higher So today to slightly we loan continued growth. are the through-the-cycle versus XX% for beta on about deposit or had we but a less at sit customer
the let's at side. take look a loan Now
provided an in point, QX. that we reference I'll you loan our a production with Here, data from additional yields minute.
our we yields loan Our nicely loan loan yields in X of make points been just about to have XX% up moving on can the as obviously as deposit the is see as table, going betas rate, variable forward. but you move as portfolio rapidly current cannot discussed but
greater being upper are the than the than Number higher See the in right on yields XXX right production one, rates. X% portfolio rates production [XXX] currently on portfolio yields points versus loan new in booked slide, of the at loan of yields the upper our loan basis the table.
of unlike monthly not first the majority don't on of yields. in the means the our Second, quarter over day the move are intra-quarter, increases the we change loan They quarterly, deposit intra-quarter see changes, in which variable rate rate happened rate following up adjusting. the loans This quarter. prime prior full that
So adjusting loans Therefore, spread. point increase our over XX supporting our to our time, improvement loans rise, as saw in portfolio in continue yields April replace rate. older of our X, net will stabilization, newer another loans then as quarterly basis
NIM XXXX would what to out So X.XX% a to end relate how to in QX in the X.XX% in have resulting to range, range. to discussed? the NIM and in bottom 'XX full this expected X.XX% X.XX% all been X.XX% does had that we for the X.XX% the X.XX% NIM? the mean range to year that QX And in range does Pre-crisis,
NIM 'XX the XX points about prior anticipated, an QX to higher later quarter the transparent March bottom to our QX in the of XX the middle events end with range costs basis current remains out to be deposit we X.XX% clear me crystal This below uncertain environment, range. than in part and one lower at here. expect driving now let With so X.XX% and to assumptions
disruption rest for basis deposits increase, on or moves growth on XX% move above Fed related with May, pauses pace XX no Healthy further that beta the to industry continues the the and of loan XX% flatten. The with Deposit then for assumptions. to continues then Deposit points in range pricing growth liquidity. betas major pace year. the current in
Remember to an liquidity, the have on impact on on more we may hold decide but income. NIM, that balance interest impact have sheet net it if do will minimal
So to year half improve recap, to the for events, continue continue year as this yields of more the rate moderate, industry costs helps. but half changes to of deeper the first interest in income the V I in stress NIM earning NIM and net trajectory in back due hope grow. loan to improvement and deposit rapid the deposit assets
and XX Slide to take a income at look trends. turn Let's noninterest
As in the I seeing mentioned improvement conditions, secondary been premiums before, market mid-March and we have before events. valuations
SBA did activity versus did income sold of activity we fixed our some premium sales sale resulting net on Though rate what activity, we variable sales as rate, was Our SBA million in of which QX, before in all sale on $X QX. encouraging. our occurred gain And $XX million in mid-March. sales gain was in increased majority the see
net mark February. we had you down reval gain the million position and or As those almost XX, reversing XX right, over asset value in servicing March the see $X was assets of on $X a from can of million, as to end fair our upper February
market of the rates at While assets heavily quarterly but influenced are continued do expect as volatility going there obviously by we valued spot on forward. this will were these X/XX based variability not level events mid-March, pricing, on be
to on Turning XX. Slide expenses
build-out on few worked step-up significant lender the And balance to hiring past discussed second, what As quarter first, our thanks sheet I to accommodate the rightsize call, fourth Finxact the we growth in to support XXXX, through gain. our accelerate to bubble, call have we our the in technology over years.
leverage. for on be hiring Going tightly improve are producers, forward, operating expense we will while opportunistic our our continue growth managing to revenue to we
X were core to people essentially Our X%. up with flat our QX only or expenses headcount
hiring We expense of expect and continued going levels forward. strong lower discipline
trends Turning on credit XX. to Slide
Chip metrics remain As credit discussed and Huntley strong. earlier, quite
see We continue weak portfolio down Past glaring dues low. and spots. not nonaccruals do to existing actively and quite currently monitor remain any the are
about portfolio. only Q&A. credit of not by $X.X trends on the rest strong the quarter the the You net our is across a can our entire strength see X Steve million well. more charge-offs of are in segments billion million that driven $X these trend. were net million $X.X across X business quality X as relationships, portfolio and of And charge-offs of overall relationships leaving the speak $X during can the quite
new our we the industry. and unguaranteed well leaned economic reserves the the remained for both loan to the building into as about continued Yet reserves above provision flat growth loans outlook, remain caution future
me, we And see, and million was feel $X with if been net $XX of With loan growth. loan I'd new about well at million currently Xx industry what way, reserve provision provision have Said provision. positioned customer growing relationships. our relationships, $X growing rather conservative good is outlook, to a our we we averages. for levels be with weren't That, a loans lower. very different combined over profitable our would million
are in overall whatever gives environment that our lies shows capital thrive us well we which great comfort to XX positioned Slide strength, ahead.
XX, rest 'XX. And for up we Slide focused here's what to wrap on the are of on
and have served the always quite will well start with and that in has stress. us soundness We industry current
our customers keep our and to do strong. know sheet We do well, what balance will we continue
our On making the we and are managing very can staying high-quality on control, we tightly. front, is loans, on profitability expenses disciplined controlling focused what absolutely which pricing
power business on growth front, remain excited our And about incredibly the we model. the of
our resulting our producers revenue to platform. add we to every to attractive businesses day production look lending loan in provide and customers, continue and value opportunities to for growth strong Our excellent more
people and strong journey and customer customers our treasury We in platform relationships have attractive on industry. this added still and very are step remain happen. lower-cost changers is management platform a embedded are More we banking to investments this running that each are and operating big we day, absolute towards ready with confident to be our first in our this XX that up technology all going our making fuller new make are And our reviews. the being game accounts,
up open can we that, questions. With for it
