Burbank and and John Thank first our Corporation me you Luther Good to is XXXX President Officer morning, Cardamone, conference Lagomarsino, welcome today Credit Officer. very CEO This call. and Tarantino, Chief Chief Financial quarter the much. our with are Simone Laura and
the result the in pandemic. the of of are and midst is challenging unprecedented COVID-XX We which an economic environment,
has our navigate safety capital over health leading into that of liquidity these and our focus quality position the company the the of believe and employees, crisis, path that months credit well to forward well ensuring and the also levels as historical X uncertain past we during our to been this our primary maintain strong We our our approach times. soundness communities, customers as well-being and operations. Our our while
risk will I profile. on first focus today our
over of our our and first standards. strong investments was Over XX% because except have base. credit quarter, of are cycles to the throughout profile we and past quarter been XX represented have end estate years, quarter, very achieved a the assets. quality in profitability These standards maintaining the of economic we risk all first profitable loans every real asset overall operations. reflected At the consistent the of adhered cash, This
no investments of is almost risk portfolio little to securities comprised high-quality impairment. for Our liquid entirely with
overall loan-to-value than including real loan loans commercial real weighted exposure minimal of Our is energy secured market and of loan acutely an to of over Multifamily by the and secured residential most our represent estate, and X% nonresidential segments total portfolio. or XXX% real ratio Less exposure estate pandemic, single-family have no XX%. average and loan XX% is with portfolio portfolio hospitality the estate retail, we by travel. our to impacted
significantly, granular our to real on no exposure Page most breakdown portfolio and of deck. we of is A estate non-residential loans. C&I Additionally X commercial our presentation have available
from loan peers We the the and lack our for believe circumstances economic lending, in estate currently exposure our a cards profile apart the current risk in of industry. provides to pandemic portfolio of that concentration The of the auto unknown. and the real many residential credit loans, full is C&I strong us set and COVID-XX impact
is need still what However, recognize important a lies that we to ahead, think place regardless it people live. to of will
support not to the change a the markets Additionally, leading in do And primary that this result our of was pandemic. sufficient pandemic. the housing demand dynamic we will as of anticipate into not supply this
our customers, other our safety sanitization In taking serve distancing employee in early enhancing our implemented. our preserve our including response response began corporate was to branches prohibiting to We social immediately workforce incidence enforcing our ability routine and protect COVID-XX pandemic, and precautionary offices of protocols. the plan and and steps March, to travel,
none date. We’re of to of a pleased actions, tested virus the result these positive to report, that employees as for our have
about to our and transacting accommodated remotely. and employees our business. our approximately their to working remind and and responsive needs our reduced for two-thirds infrastructure, responsibilities. elevated continues customers telephonic, customer We and customers, mailings website being staff ensure branch could that safely hours technology are We to communications schedules be family few of enhanced who mobile work and online balance postings options via accommodate minor with and implemented to employee flexible existing Our a effectively enhancements,
foot our encouraged process, to person. significant in before their we transactions awareness in also have witnessed primarily relation Throughout in branch pandemic, conducted cyber schemes. a Historically, heightened clients change this and fraud to around traffic. exercise COVID-XX particularly the We customers
transactions our of over handled number significant phone. are the a Now
to loan And deposit as open. hours, all reach I assist they answers who that borrowers when by crisis, established ready program. this their of and but prudent health payment impacted customer system, our representative business is report loan company our branches serve a proud or do phone during been a our directly automated the to am have an remain needs. any customer-friendly bank we’ve not calls deferral always, instead, To
for months, deferred to interest their the borrowers the term the P&I loan. for defer to maturity extended payments in months and X scheduled homebuyer Our monthly our equally the first-time where capitalized of over are X revised repaid loan program borrowers principal or and the of certain is obligations allows program,
loan with deck. completed of applications received more Page loans, information Please X deck As of XXX hardship per totaling COVID-XX month principal at million, the liquidity is of refer total can of X.X% billion of payment we April approximately deferral loan $X.X more be presentation with of a principal as loan to with than March associated XX, representing regarding available portfolio program. representing total loans resources, April presentation have we Through have XXX of cash portfolio. XX flows loans, modifications balance. our balance totaling shown million, readily deferral that our our with applications XX, our completed payment provided X% XX, and X approximately balances $XX $X.X of our the The supplemented for for $XXX foregone completed million on Page
will the by afforded COVID-XX majority modification Based loan status a vast Act, and receive of accrue who will to payment XXXX in financial CARES their as continue reflected have monthly current on flexibility records. customers of the recently the interest Section enacted our
our relief the to The is watchlist anecdotal increase that that time monitoring. of of date impacting of payment desire will and added good superior willingness the credit As our credit be and months. subject internal in will will borrowers times materially believe for evidence loans clear support loan-to-value would inquiring be the considering past subside as our in low each not gathered providing culture support call difficult both whether programs applications to our our about the portfolio, X approved over for It is be without volume ratios. generally by modification bad, to that nature customer our only reinforce COVID-XX evidenced loan these service, this weeks. to deferral expected, and over well-secured has or will increased decreased during the We relatively is coming
a which Paycheck nature customers. the to number not the Program of includes given small business minimal of participate only Protection elected in We customer our base,
providing However, services. to our remains estate residential committed lending company real essential
and Although related we credit period unknown due to underwriting have the risks. taken steps to temporarily protracted the tighten pandemic potentially of our the standards
single-family no applications. loan-to-value loans. only applications we owner-occupied investor-owned currently ratios single-family for single-family which We’ve homes, estate two multifamily categories are longer are loans, First, or for construction commercial the reduced second loan continuing homes, to entertaining nonresidential accept loans and real we for
in Nonetheless, further the strong implement our protections and changes we believe real statistics and additional ratios credit support single-family on debt reserves X payment months credit monitor coverage estate have higher portfolio. all are mandatory these borrowers. now employment will will control loan are markets loans, and been of bank as while for We continue required multifamily revised scores Additionally, of to new actions quality necessary. XX to
an to result, CECL And this adopt as January emerging we growth not not As adopt quarter. required did are until CECL we XXXX. company, a
our loan pandemic, new We continue indicative current incurred our prior then the of develop adopted the different we COVID-XX was to of existing our to to had which as were CECL materially levels based loss model, loss model. year and not end compared allowance the when on reserve
seasonal will learn on to about the this continue too While the to we as more is impact early of full modeling, the the it virus. impact potential we understand economic analyze of pandemic our
for recorded loan our the in provision or our $X.X linked to was Now, in XXXX common quarter $XX.X share million The $X.XX net included which consequences per first common reduction the in or increase first in earnings was corresponding the COVID-XX due results, with $X entirely a per for $X.XX to foregoing uncertain in quarter. taxes. turning notable the for predominantly a expense, million decline interest to economic million income to million and in diluted $X quarter’s compared million losses, quarter the $X.X of non-interest earnings the decrease expenses to by somewhat contributing share of factors the $X.X pandemic. a a decrease income was Other income diluted million net address net offset
speak will greater those I in components. And to detail now
our asset over improved the very by quality, quarter. First, traditional strong remains and measures, prior actually as defined
as compared from Our nonperforming basis by loans the decreased by low quarter. X linked level our points XX or million XX%, criticized loan total dropped loans to of points $XX.X an already balances basis to and
quarter impacts recorded $X.X of million the As points basis have onset end for uncertain loan at coverage a than recapture the the account pandemic. from XX current a increased of specifically our We reserves a by of ratio the Instead, COVID-XX points. a provisions. ratio the coverage to of allowance company XX% the of result, loss the to XX more economic our prior absent we to pandemic, added basis would loan adjustment loss qualitative as
the the Had loan-to-value respectively, single-family average have COVID-XX of $XX.X of portfolio share. $X.X of the portfolio properties reserve determining coverage the secured its XXX. support total and consideration connection Coast credit the net ratio markets; our $X.XX loan an located which or of comprised per one, including average portfolio, to loan real would diluted original allowance loan of balance collateral appropriateness and in of overall million was the considerable average the West or portfolio debt indicated score non-residential and with company the number metrics, losses credit additional with three, granularity first key X.XXx, income X estate during factors: pandemic residential fully ratios by our XX% In a quarter not million; for two, our than X.Xx refreshed level, for multi-family housing-constrained to of loan number the strong of $X.X the quarter, XX%, million in number given more is and added as commercial been
the the pandemic. of we add to may level at comfortable some and March incremental provisions will of become with time clarity that COVID-XX quarters, future XX, reserves believe the While of scope passage additional feel impact we economic the in our necessary of
interest of After net to net of the second our consecutive or linked quarterly earnings quarter. result lower decline XXXX reduction the half first net This million the net was fourth XXXX. COVID-XX $XX.X quarter Next, income declined interest interest in chiefly totaling basis margin the X.XX% million points to funds March. net We of reported by rate our $X as X.XX% previously of during federal X from in XXXX, a interest cuts during a quarter of the from points caused margin quarter’s of two the in our in for quarter the first income. precipitous pandemic, basis due XXX improvements declined
short-term Given sensitive beneficial net liability rates interest balance sheet, declines in market to are our our margin. generally
in rate of immediately, our August and significant the impacted XX% reduction lag will reduced funds rate however, deposits, our by composition total rate with billion June income federal Reserve. swaps the interest reductions of placed $X as the However, previous swap term the additional our in Federal XXXX, compared funding on The quarter. costs to which deposits $XXX,XXX books in by of to improvements made
XXXX funding of of September a to level the quarter. since cost quarter current basis we Our XX X.X% for for the by swaps initiated from X.XX% total total a cost of the ending points has declined
shape yield balance to of points this assuming expect curve, basis the our forward X change improve we net Looking year per to or quarter. the of no by would margin for level to interest and X the approximately current
million efficiency post-retirement $XXX,XXX the and by Finally, the as and expense a expense. relocation non-interest increase level increase quarter. quarter. longer-term was expense the for basis the prior insurance related unexpected The rent increase favorably decrease and a company prior negatively in remaining The ratio large of million costs expense costs as non-interest by first We XX%, first final increase approximating quarter in These credit $X.X a related costs to decline utilization business $XXX,XXX front-loaded ratio premiums, occurred assessment continues Despite in to increases points increase rates recorded direct million net for in to or in income quarter $XX.X bank an compared decline nature period, respectively, to $XXX,XXX benefit marketing in to in principally the X.X% the compensation the costs of industry to due deposits $X.X during our and million $XX.X was fourth well assets the interest of the impacted a the higher-than-anticipated FDIC in of of to this in taxes as with post-retirement in were in partially payroll quarter. first in associated facilities to the small and measured average some owing a $XXX,XXX offset the costs the quarter. XXXX. during increase to XX relationship and expense in was compare non-interest
that expect range between expense $XX remainder and year. million We quarter $XX.X our million non-interest the will for of per the
we Now the sheet. to will balance turn
million assets XXXX rate. our was the growth X.X% in cash at March annualized totaled representing of portfolio. Our an growth to in or The end $XX of billion, primarily $X.X securities increase increase due
of by exceeded declined origination quarters, including $XX.X of a XX%, interest the small rates high Similar remained XX% million, and CPR for relatively loan $XX.X Although in single-family as first loan the of Prepayment declining past to borrowers a fixed loan fees loan payoffs segment, primarily of quarter experienced particularly portfolio XXXX. into rate curtailments patterns purchase, million. our multifamily the and with million loans. result first for entire we new faster residential portfolio and quarter CPR in refinancing where volume, measured prepayments longer-term few long-term loan the recorded the a loans $XXX.X were
XXXX, significant at annual March this COVID-XX XXXX growth double pipeline a asset we amount $XXX January almost a expected pipeline the a million as a has loan of quarter. was or range in to result At COVID-XX of end prior In pandemic. the balance of X%. to the of uncertainty. strong million year, the created X% be of The significant a the dislocation pandemic The XX, $XXX of our of market result was during
Our year. been has pipeline it last over is stronger the ever than
to interest quarter. approximately the remain due longer-term basis decline points rates of XXX the prepayment during However, speeds high may in first further
credit as year may In addition, our in recently believe of growth criteria, range. in Therefore, impacted pandemic. negatively X% may put growth be the place to our result we by realistic a for the tightened that a be X% rate the
wholesale Consumer grew while the million deposits million million, During total X% first $X.X by to declined and deposits deposits by business $XX.X retail or retail increased $XX.X quarter, increased billion. balances $XXX seasonal exchange each year. The $XX.X by was the business the to typically which deposit outflows quarter wholly in reduction million. in vertical, in first balances XXXX attributed a of experiences decrease
us to levels. of economic making management on decisions. in and we stress turmoil more our significant strong. would regulatory we in company’s resilience impact market executive our appetite, market, risk under maintain capital real Page forefront capital past. And line shown remained adverse Directors X and those we capital of current as test to assist capital the this Board Board’s is of above minimum manage The purchase to in on required the with periodically management. to the of However, slowly presentation the capital the expect business its the the health our estate at cushions routinely minds scenarios refill our ratios than The We levels ratios it and has deck, of prudent
stock During capital the our X.X the authorized replenish repurchased a have plans of pursuant and of our complete to of average These $X.X will through company we we share April share first a growth, have share. economic million, for our understanding repurchase of under in invested than the full unless under stock volatility the plan. COVID-XX current have better by XXXX, of repurchases Since repurchase of inception repurchases have repurchases quarter freeze share We plan $XX.X strategically in we XX, do $X.XX pandemic. currently XX per million no have authorized or plan. to our our to anticipate total strong Therefore, plan through increasing impact plan. approved currently this of market additional repurchases XXXX, available existing XXXX, April of We we not the price cost an anticipated million much the light we at resulted intend level until in asset repurchase and August in plan. shares share slower we position, own the
a Board $X.XXXX per intend currently of Additionally, Based we Directors the XX X, to declared to as on May dividend payable May level. continue our on XXXX, XX. currently know, cash on quarterly May the of share, shareholders of of common what we – at dividend record current
however, will levels and will, have continue if on and changes the and that We appropriate. to economic may capital business monitor the COVID-XX accordingly, we environment make pandemic housing our impact
like an I just that our of is been Laura outstanding hard such sincere employees. comments, team, privilege to truly tirelessly, and throughout service to and and each It our have provide my awesome appreciated. express their it’s few this with come it work make to together Before working we turn they’ve working be – to recognize honor would remarkable appreciation They much a is really publicly support crisis. over to and I team a and to to customers so can other dedication
like And a few now it additional Laura to turn remarks. to for I’d over
