Thanks, David.
to million growth was has $X.X end segments, $X perspective, in were at first from several loans the June decreases Looking the across of X, where for in X.X% billion, total This construction our for been lines. of financing at and quarter lending, in board convert we pretty which finance, mode as as quarter $XX covered up and lending growth in of up by payoff. highlights strong from run-off our X% million loans commercial Slide offset the XX a consumer well and XXXX. a including second another the the quarters much quarter the in had specialty David healthcare from permanent the about activity
end in on the were first deposits down Moving we overall modestly to on the from composition our balances quarter, deposit deposit of notable to improvement continue of but Slide see X, base. the
primarily increase quarter, quarter. to relationship developed $XX.X million Banking-as-a-Service from a in in deposits non-maturity by the deposits increased due first the million, that we $XXX During a
uneven $XXX activity this offset was partially due from mainly customer can that a However, some be decline in accounts million quarter-to-quarter. by to money market
the to their of points. and brokered $XXX X deposits basis the quarter, first or XX.X%. million CDs trend continued cost decreasing Additionally, interest increased bearing deposits Compared downward
Slide Both $XX.X interest and million Net $XX.X X to with equivalent relatively quarter Turning basis. and income stable for the million X. on first the a were was taxable quarter. fully
basis and to loan further brokered liquidity yielding the capitalized yield were which as effectively were the in support the on With in XX to due we first a earned yield securities We primarily totaled CD quarter. sheet opportunity deploying earned able well to decline in balance loans, offset on income strong increase net X.XX% tax to in assets earning advance assets. point excess earning yield on the The originations, the first X.XX% quarter, to during average optimize that the the a basis $X.X from interest and refund by thrilled the higher expected as revenue increase on maturities. from point on we million especially the fund in XX quarter production deposit increased continued other
margin X and X.XX%. originations. the quarter, recorded second While the of loans, X.XX%, received X.XX% was you increased quarter average the revenue an basis increase fully the on loans in the We interest points on reported tax interest basis the a in yield yield first growth of exclude pricing XX equivalent refund the margin from new higher points loan increased portfolio down to of we on if from on basis basis strong the and points net quarter, advance first X points the taxable net to X.XX% X again reflecting effect
As you tax quarter. yields, X see loan was and refund X in first costs from driven Slide securities higher again X, by of modestly point the effect and which partially lower the a the reported included on basis advance a from point of deposit improvement cash, offset point impact basis lending X basis can contribution by contribution the
As able graph the relatively in thus to you on can this been rate Slide see to in have costs constrained funds the cycle, tightening deposit comparison increase on in Fed we keep X, rate. the far
basis business interest through bearing in money June basis paid deposit the beta money now basis XX%. in Related not rate of the we products resulting consumer balances and total balances business representing business market given this balances XX% resulting commercial paid With points, all-in during XX%, rate increased and a deposit cycle-to-date money noted on in XX, deposits. small of the commercial and market demand small the in paid and XX increased on the XX in the point of the cycle-to-date points, cycle-to-date market beta balances release, year, rate couple money a remainder market money like margin rate of to is highlight regard beginning have we deposit March products the and outlook of As on With net on period, for I consumer, on increased market interest observations. and income beta would the small funds XX%. to to interest Fed earnings net increase XXX our the commercial
the money few funds market in First, that of been lower this the have bank the is one history of rate. rates than times the Fed
Federal So we are effectively making a positive spread on our cash balances Reserve. at the
higher balance the during on last beta higher growth. Second, cost, CDs to support sheet cycle, we relied
cycle, we the means funding deposits. beta and we of As lower deposits lower entered growth with non-maturity cost current are the composition our improved
line goes income. of repricing top income the and As drive will well as total growth combination far half feel interest the growth variable-rate that higher production, of as the on confident assets strong interest higher second loan we continued new yields year, in as for
increase we do rate higher forward On expect the as expectations, deposit side with well. funding costs to
bearing than earning costs However, pace somewhat to expect interest in yields. the the increase of interest that be lower total deposit also in increase we asset
result, in growth net interest a modest margin interest expansion. income forecast As we net continued with
a and to lower in the by gain so the for environment of activity non-interest on income at loan consistent sold revenue decline saw and of mortgage million, loans, business, revenues X. was purchase markets. originators, other beyond for refinance David a income in Turning was down to outlook other The decline quarter in banking decrease the that market $X.X the locks our due rate other fair the to SBA Slide rate lower decrease fund we decline the declined quarter. million $XXX,XXX, on higher carried mortgage both result activities. line and Non-interest interest in in with income on volume of income the the investments covered mortgage impact a driven from a value of sale due first for and and primarily value and $X.X its
year. In decreasing the expect the central This mortgage for full-year now $X.X revenue the negative banking to be We for represents our industry, for forecast of digital $X.X in the the we going broader direct-to-consumer Indiana-based businesses. our now mortgage outlook million million given terms outlook the XXXX. mortgage for forward, of forecast remainder and of to range the mortgage existing are of revenue
opportunities challenges market, us. in these stages come on the mortgage More channels the open of that calls. on current With new could the future are we origination couple earlier in evaluating for a to innovative of partnerships potentially up
$XXX,XXX quarter. was consulting primarily loans fees partially first marketing Moving salaries lower $XXX,XXX and quarter in first and X. expenses, fees by fees such were primarily incurred employee and amount increases to consulting fees was expense, and driven expense in The nominal $XXX,XXX $XX to decrease the by the of the to and The and linked down service fees Slide decrease of quarter. professional offset the second as expenses was second advance the to loan Non-interest other due were loan lower costs. fees The related for consulting quarter the was decrease in due from tax to professional quarter. million, as benefits in refund in that in non-recurring primarily a opposed of incurred
of mentioned costs banking compensation business increase higher to partially his in costs media mortgage the second marketing David The mortgage and the bonus discretionary due The offset lending of comments, $XXX,XXX quarter in costs, in lead incentive expense costs company's mainly due higher lower and compensation to employee divisions. was small expenses equity Additionally, by that sponsorships. and benefits generation in quarter. acquisition-related as of inflation opposed $XXX,XXX in these incurred salaries we the $XXX,XXX to $XXX,XXX was and accelerated first
on XX. Slide let's Now quality to turn asset
quarter earlier, during loans points. in X excellent basis decline. recognized non-performing of continued ratios and quarter, net mentioned to Net to quality resulting average charge-offs even non-performing and the were the credit remains asset $XXX,XXX of David improved as second during As loans charge-offs
or $X.X of at in upgrade the levels decrease as XX, With capital XXXX. in our loans due allowance XXX% million relationship tenant quarter basis off primarily activity lease to point non-performing loans of charge-off at during in decreased Slide the X to total $X.X the of allowance losses resulting related were loan overall respect average the in basis financing $XXX,XXX, net quarter, net Excluding million was March strong. The due X ratio to decrease of loans ratio the quarter loan both shown allowance to of as of million The March XXX% loans capital pay in the compared X.X% X.XX% quarter And recoveries $XXX,XXX to recoveries. and bank loan. growth to company XX, provision The straight $XX.X as change the to XXXX, refund the net in allowance loans. second compared of portfolio. XX% June increased increased advance for the $XX.X final the XX, recognized by the primarily XXXX. loans The linked for our for as quarter. single compared June or for a million, $XXX,XXX of C&I to to The net and on of points first to tax remains balance XX, to driven recoveries XX, non-performing to loan the of end, second quarter the full as was and of the the of losses non-performing of was the a increase
has points Our highest assets it which X is in the tangible recent basis X.XX%, ratio tangible common equity increased history. to been to
banks are quarter many share, in decline $XX.XX almost first to during per X% a up from the increased $XX.XX, in year-over-year. ours book experiencing quarter value and tangible up Additionally while the
we regard have $XX.XX quarter, of being and common shares including of tremendous first in shares of XXXX second capital to quarter at total, During of price XXX,XXX million. average per part management XXX,XXX having the an share we forward, million total in the stock-repurchase of as as With shares of provides XX. $XX.X repurchased we excess of fourth it repurchased have June an $XX authorized the our repurchased stock price XXXX under stock of $XX.XX average position our the or share enjoy at going program, repurchased per XXXX, quarter flexibility. we through of In capital the authorization
business explore and want are fintech to commercial have David earlier, our and to and will to Banking-as-a-Service of strong in come. As the able arise mentioned in to they earnings We continue years new the drive space these opportunities pipelines partnerships. finance these be outsized we through as lines growth capitalize opportunities on what as both
our Slide now allows supporting price also is franchise flexibility our shareholders not the XX. turning us remain that And market in to of stock, when our for to the However, value. reflective
positioned We of we rate continue were the much feel we environment last the rising are better to for beginning rate tightening a at than cycle.
years cost cycle-to-date, experiencing of sensitive deposit lower during deposits And previous XXX%. all-in less two non-maturity our in last of market And reliant our we at cycle, our grow which muted than deposit support percentage balance sheet than money larger has growth, as have which we much betas competition non-maturity or even the on are a the excess balances, last of price of the betas much deposits. in to earlier, Furthermore deposits. consumer accounts, cycles. on rate ability improved our with small-business balances we to I more impact composition Over within CDs mentioned much were in experienced are
will is originating construction We we to areas lending. the fixed environment. loans originating to be the we focused added growth expected stability onboard through questions. also financing, are And notably to greater back we and providing has in loans non-interest we rate turn and still yield as I will take our your operator, regardless coming new so SBA rate SBA franchise expect finance single-tenant interest from finally, duration two long-term remain we over revenue originations variable while mortgage years, the much highs notably can seen diversified higher are both it historic back in yields. which rate With continue and partnerships, pull that income, lease have diversification investment higher on to fintech last further at on revenue short in And the while of Banking-as-a-Service of longer lending
