the and XXXX is everyone John Andrew. welcome Officer. to Financial President Corporation Good Simone begin quarter's Burbank quarter. last This call. morning, Chief and we'll results and Today are third you, Cardamone, me conference with and Thank Luther quarter our of Credit with Laura I'll CEO, Lagomarsino, high-level the a financial discuss our Tarantino, Chief and Officer, overview
occurred pay provided to and that dynamics swap market yield us These first, quarter two the position provided better positive allowed for the during into fixed opportunity curve enter include: the inverted bank. quarter. the carry transactions a to the us Several
the of Second, cost the results. reflected by toward future provided Reserve impact deposits of lower Federal end opportunity in the to quarter, which the will our the of be rate the two reductions
space two of enter Third, in increases box to savings. This for space at rates some the retail in of due opportunity of to some inventory leases provided the into office large excess retailers. the online substantial dropped purchasing, our lease have to due resulted us markets, and in new which future the shakeup
potential economic we plan repurchase under at to a the uncertainty to X repurchase shares. and driven our of a to wars, since of by caused an additional book result by bringing market downturn, the threat as share inception of value trade total than volatility able our more shares plan Fourth, million repurchases the Brexit discount were equity continued for
their items each discuss will these results of detail more our below. impact and to I in
quarter per common the of or per our was prior to $X.XX an the diluted $X.XX for in earnings. compared me common Net diluted income now overview share with or share, $XX.X start Let quarter. million million $XX.X
quarter contained third earnings Our non-recurring items. three
$X.X other insurance The significant improvements two on $XXX,XXX first and write-off FDIC adjustments The for was due of and tenant loans. were leased sale two million a $XX,XXX facilities. to deposit item sale unamortized loans credit of the gain of most a
will discuss minutes. a detail more these of in items few I each in
of $X.XX these as per with three million the $X.XX Excluding per third items, of an our have quarter nonrecurring compared earnings been share, XXXX share. or adjusted $XX.X EPS million adjusted earnings to would linked-quarter $XX.X
million in net primarily the The interest losses increase partially XX% reduction adjusted in $X $X.X or in earnings, net million a noninterest higher by offset was to expense. for by supported improvement $XXX,XXX and in further to linked our provision income compared loan due quarter
income net a more $X secondarily, rate attributed The largely million prepayment third the was two in executed quarter interest to our in quarter in improvement fees. in to loan swaps, $X.X interest income million from as linked interest fixed [$XXX,XXX] and compared interest pay recently the the
second a to to which was of multi-family rate portfolio, in accelerated from risk rate increase third speeds a in the loan loan inverted as by in prepayment advantage the positive interest quarter XX.X% the quarter. took our yielding due in of of of The fees portion curve carry. as a offset prepayment immediately our transactions interest increased portfolio, swap The XX.X% the loan well speed yield in
from to in linked our accelerated speeds of prepayment quarter. a of third the XX.X% portfolio level the XX.X% in rate during Similarly, single-family loan quarter
the our as of Primarily, yield XX to the prior for aforementioned However, quarter, single-family X.XX% assets basis items, the as a earning due prepayment are interest federal points our to during assessed regulations, third not on fees increased X.XX%, loans. quarter. on result generally compared residential to
X our from our third X.XX%, rate to the loan in expanded the new swaps of interest on for quarter adjusted portfolio yield generally by adjusted the fees points as payoffs. the year. the the quarter on and loan This earnings prepayment to Excluding basis multifamily coupon collected, an is increase compared on of yield second originations due rate this of X.XX% to during an exceeding loan yield
in relatively and on has rate narrowed, interest consistent. more total However, originations portfolio has the coupon recent between remained loan months differential the the payoffs and
call. conference will in presentation Laura in detail provide later more her this
points While the the cash this basis improved securities short-term our the the securities quarter, from portfolio Reserve assets adjust Board And during quarter. for yield X.XX%, rates declined interest reductions XX the cash its the related linked third is Because interest estate Federal portfolios, rates our earning a the and target yield aggregate as point on quarter represents interest indices. earned during rate and to result third quarter. basis during on of of our in loans on our in to which XX real XX% X.XX% lower short-term
quarter's XXXX a XXXX The X.XX% increased both from increased quarter linked the interest short-term the trend, X.XX%, which of as the to of during during specifically, our between More quarter. third interest-bearing XX of the This X the the points quarter during improvement basis quarter quarter our the liabilities, deposits provided is interest-bearing of the compared our a X declines relief for cost X.X% quarter over a and to this deposits to the rate increased cost the basis and second wherein from of some points points basis cost first fourth second of X.XX% of third from interest-bearing XXXX to prior first only quarter year. cost significant quarter. of
offerings, to in we as deposits rates Reserve's as well our reduce of began lead. non-maturity During quarter, some on to the Federal our interest the third response CD
more net in than its margin on For Reserve first X.XX% the The performance from one it linked-quarter. third rate as pleased target will increased XX. very year. margin fully We're with the reduce increase quarter, again to that net during marks October X points our Federal X.XX% basis market our the interest this in the interest anticipates
While decreases. incremental rate of future cost to short-term benefits see interest would we on our expect with the deposits
cost the of of Reserve's short funds particularly rate pace where time. our cut, their improvement lag the period target a within rate of The times Federal dropped multiple will in
Our the our be, short-term rate part, trend influenced of deposit a of follow deposit, ability repricing by will to have of as timing in certificates our maturities competitors. as the well actions of the
of Additionally, and that curve. may interest portfolio prepayments of the changes the offset the be with decreases short-term rate benefit reprieve yield loan in the in fees loan by of our steepening rate
a loan loss recaptured quarter loan the loss for linked a $XXX,XXX provisions recovery loan quarter, end was quarter-over-quarter. we in to in the or of to prior provisions, criticized since $XXX,XXX loss recapture in million the $X.X third due of quarter. During $XXX,XXX the the recording our loan a $XXX,XXX of collection primarily and reduction change as a balances compared charge The
loans coverage of quarter. to unchanged as total as of the ALLL to of Our the ratio remains prior the end quarter X.XX% compared third
$XXX,XXX quarter, and equipment we XX%. the with family, weighted mortgages recovery loan-to-value during gains And quarter average a on $XXX,XXX loans that adjusted XX-year Non-interest of during single XXXX, for gain of $XXX,XXX linked income sale the of third adjusted $XX,XXX of of non-interest during million similarly loans sold fixed-rate pool sale ratio on of the the compared a for $XX.X income $XXX,XXX when period. when was or to third quarter of
remain year, this anticipated transactions small loan nature. Although no are further this to sales we open of
Beach $XX.X Non-interest office to tenant expense mentioned, and related of previously a million quarter improvement And write-off corporate during was capitalized million Manhattan our one-time third XXXX. as San the $X.X branch. our Rafael included of
$X.X other evaluating have annually, to to a ability the leases compelling than reduce more these properties, we million Although option by renew was reason upon – relocate annual expenditures available than more occupancy both our to $X.X facilities. by million the
that and the better for premises and the $XXX,XXX have better believe quarter third we a contained are for accommodations FDIC employees. assessment Additionally, also customers Non-interest new our credit. situated generally expense
As I'm credits. aware, level their bank allow to sure begin reached required FDIC the using reserve small banks insurance to minimum its fund you're
will balance the in fully credit, XXXX quarter which a there small After be recognizing quarter's fund levels. by credit utilized FDIC the current assuming bank $XXX,XXX, change first significant no have we insurance we of is expect the remaining that of
unusual of quarter, the quarter, due $XX.X quarter, compared for increased third million a as reduction to linked the or adjusted as two to XX% quarter. $XXX,XXX predominantly in in third to items the origination decrease loan a compensation directly capitalized during expense Non-interest by to $XXX,XXX the related in linked as those expense volume compared
compare third quarter industry to Our noninterest of respectively for assets to the X.X% and the XXXX. and efficiency ratio very continue and average favorably expense XX.X% ratio to measured
Now, balance let's sheet. to turn the
million cash year-to-date. assets increase $XXX The XXXX a assets at totaled $X.X $XX was from billion, attributed to real the primarily increase the $XXX.X or September prior in of loans an million estate XX, in year-end. million growth X.X% and end in increase of Our
million, by the During elevated third $X.X loan prepayment. chiefly decreased our due quarter, loan portfolio to
During current $XXX we respectively. quarter, volume as second million of in originated $XXX loans, and compared of million XXXX million $XXX first to and of quarters the the
increased XX.X% and prepayment the and the from loans annualized second XX.X% all our quarter However, for for XX.X% to for first third respectively. quarters,
revised a teams, the our continued from Based as X% believe trend flat prolonged and/or and activity in attributed for that feedback expectations property activity growth well calendar since growth our repayment competition quarter to to loan now the loan the have for XXXX increasing rates, our sales the low inverted the loan interest yield and upon in income on we experienced the expect with single we X% growth prepayment Based of family is year-to-date asset as year. prior long-term markets. curve, and period
in losses assets $X.X the credit non-performing currently assets X.XX% loans. non-accrual increase increased non-performing quarter, to loans made two The to remained compared are third these of anticipated quarter. Our quality four on loans single-family borrowers. linked four small by and in was loans the original strong no appraisals with total by on Based million represented to
behind $X.X now were were of paying at totaling days $XX.X agreed. XX total delinquent principal as XX have loans by loans had XXXX, At days loans credit current. trends. a made of are with payment already routinely three Of Of and September our negative paid five accruing balance XX, non-performing delinquent. we that our off that no indications September XX% are evaluate five We or balance for and XX, million loans these their potential accruing loans million
some $XX growth. while strong increased was deposits our retail accounts, During our business declined our achieved $XXX.X quarter's balance growth the we million The ran was million. deposits excess as was XXXX by in in our retail or from purposeful the by in XX% of XX% the deposit quarter, Approximately of branches. current off million, $XXX.X retail our particularly Coast decline gathered XX liquidity West broker protocol, within by growth of wholesale third our the Exchange deposit resulting while deposits
the XXXX, was remain September ratio loan above company's the to quarter. XXX.X% X.XX% X.XX% at Both level levels and The well bank's regulatory the a and and At capital purposes. strong were the our to end and as X.XX% ROE required current XX, for capital of bank during quarter minimum during prior quarter. deposit the and are respectively, compared the compared X.XX% of XXX.X%, ratios ROA linked company's
Excluding X.XX% X.XX% and ROA the to impact non-recurring above adjusted current would quarter of and our period been of X.XX% respectively. prior discussed respectively, X.XX% ROE, and compared amounts items have
one-year Board the plan, extension activity XXXX, its stock – Directors per XX, We're XXXX of allow Directors on quarterly of to payable XXXX. share, Board to common the shareholders October cash record XX, on for $X.XX the continue a company of the will is our approved pleased report November repurchase through XX, term on a on dividend repurchase October declared XXXX, share to the November Also, as December which XXXX. XX, dividend of of X, of
discount tangible inception of per an stock shares began an August Since book X% repurchased [X.XXX reflecting of we XXXX, price our plan, the share, of value. the repurchase million] in average have which at $X.XX to
have of $X.X that and opportunities will the remaining continue originally repurchases, as $XX for million was approximately We to appropriate. we set share repurchase aside million evaluate
inflation XX housing makes whichever ago, The XXXX. plus goes briefly lending, for California on basis. in an or touch X% XXXX built years XX% passed landlord statewide rent on or law, most September into rent-controlled more was to increase annual specialty multifamily the ordinance bank's our illegal lower like of I'd to new given multifamily in it for more X, that effect January is which tenants of a Finally, by than
flows loans other this states that reasonable rental rent place of we annual allows undue multifamily believe cash this property believe and control some values portfolio. rate increases. the owners, do unlike And in loan not underlying collateral and We not California on will laws law negatively for the our or the does impact that restraint multifamily
as loans pertains actual underwrite our the originations rent property our at to our As our we from origination, or income to market it loan lower portfolio, current – derived appraisal.
little the to now, and turn our more loan who portfolios. over bit And trends about it I'll a margin in and specifically speak Laura will other deposit some of
