David. Thanks,
lending from the David to for Slide turning a quarter X. highlights perspective. covered the Now
of were So pleased I will Consistent second the is just a higher our larger higher portfolios, of add origination quarter see some classes, to our that lagging of because from overall on focus loan on fixed funded quarter, yields increase rate portfolio asset additional color. impact of we first there origination nature yields with to yielding continued the the portfolio. our some the
have these on the loan impact a originations yield should future periods. in However, positive
and total from this SBA strong other to we accomplished to pipelines. the the we finance second of to continue quarter, the the loan to portfolio. composition as Our very what channels rebalance majority goal and of production construction Similar using our portfolios fund in optimize is cash flows franchise continue have
X deposits X. Moving through on on to Slides
up quarter $XXX the XX of deposit of led the originated first Board. deposit million renewals by end during production quarter at million We new average X.XX% the in the term quarter. consumers majority our cost quarter, average were and came a the of resumed months. during from and from $XXX across the were demand CDs an the weighted For or growth X.X% The balances strong of
an These of maturities were $XXX average cost X.XX%. offset partially million by with of
X.XX%. in Looking with cost and an forward, $XXX quarter in with $XXX of average quarter million maturing the we average cost X.XX% of CDs an maturing of the fourth have million third
in the some $XX primarily were early Banking-as-a-Service. supplement related increased declines market bearing quarter-over-quarter of brought period checking as essentially we in deposits deposits as brokered Additionally, Non-maturity offset first million interest-bearing the demand from the money to increase balances were by balance an non-interest on end to flat in in quarter balances and sheet liquidity. funding
returning and funds. With overall level costs of high the and rationalize at over premiums during deposit we balance deposits liquidity, to sheet lower growth base by strong priced Fed to million were quarter a deposit deposit the the on $XXX in able
David XX from As deposits a the is mentioned second four quarters. the growth quarter, the the slowest points of interest-bearing last rate which quarter, our during the first and interest activity over as all deposit of result of by cost pace increased basis the
balances. deposit at conversions X construction the decrease at primarily balances, non-interest of money bearing that reciprocal was total million we or from and quarter. of quarter market deposits uninsured Slide first balances The estimate down on the end, our deposits XX% XX% $XXX decline the in drawdowns end at related Looking were to driven by
are a deposits, allow There are of to total accounts the million rest insured bank’s industry. for nor the balances which of for as collateral balance deposits based are Indiana As that neither preferred larger favorably municipal under the these deposits balance only adjusting to in contractual Depositories the are certain uninsured conditions. types or call of certain Board also report. Indiana on dropped reminder, total under the uninsured by reported and relative included require comparing withdrawal XX% agreements $XXX deposits adjusted After are
total including cash and unused Moving end, quarter $X.X had billion of capacity. we borrowing Slide to liquidity At X.
loans At to uninsured million. balances to represents and our ratio uninsured With over deposits. the quarter, XXX% end, of deposit capacity declined over the unused deposits and XX.X%. adjusted borrowing deposit course $XXX our of quarter of growth XXX% cash cash Furthermore, the total increased
worst we feel the to any arise. they the have meet us, that the future if appears behind we it crisis needs comfortable While customer liquidity that ability is of continue to
on and yield for Net X.XX% respectively assets earned in to earned point was quarter other the equivalent a XX quarter. primarily due the yield fully a on million a in X point the the Turning average $XX.X from linked average point on basis the to from earning in quarter and and and earning interest X. X XX the X.XX% yield assets interest to a loan first yield million basis Slides increase The X% taxable X.X% increase securities. basis basis income on increase $XX.X down increased in
interest income and interest balances higher loan XX% assets growth cash combined the average top to on produced The yields earning quarter. growth compared and increasing strong almost with linked in line
As interest earlier, the of with and lower result, costs pace slowest our quarters net expectations. deposit a was increase was and rise, line four as contraction continued the past David to the in mentioned while income in
a the points X.XX% taxable quarter quarter, a second recorded basis the points Fully interest down XX quarter. interest from quarter. of of margin basis net X.XX% net XX the We was prior for decrease the from equivalent margin first in
on highlights volatility which higher X industry, mentioned the basis points. the X the carried interest change As the of we have David drivers balances interest given quarter. net comments, we banking cash X The in roll negatively margin margin taxable forward net by the impacted his margin net during fully estimate in equivalent during interest and to to quarter Slide
quarter. third quarter. re-pricing be rate Similar the deliver we to to we believe this to quarter assets for will income in originations up that basis Currently, for points total portfolio points around third variable loan increase we interest and another expect XX new higher, on basis the XX the yield with the loan another higher price
Based pace the slower quarter, increase cost and increase quarter. another on much later yesterday’s a in in deposit at in Reserve we we saw year, the what expect perhaps one Federal also third second than to rate although the
quarters. impact the will nearly the the at again as on prior Given these as higher net anticipate as sheet expectations quarter, margin balance well we of pace same interest contract in net and not the interest carrying further third liquidity, although income
hits interest Reserve begin expense stabilize, net interest and Federal its the net third or the deposit rebounding to begin margin quarter, are costs terminal income rate net Assuming in to rebounding interest later fourth the in allowing upward expected quarter. to
on Non-interest Business quarter $X.X Turning sales first first Small consisted up Gain Slide to guaranteed the for the for gain income on income U.S. Administration XX. and quarter. loans. loans $XXX,XXX up entirely of non-interest sale of XX% million X(a) of quarter was the from the over quarter totaled on million $X.X
continued Our track of volume as while basis continued SBA record its growth loan XX% to up points. sold improve premiums quarter-over-quarter were team net and increased XX
the potential have GAAP non-interest Looking I business. over growth due at to want our SBA was able of mortgage the even quarters, in revenue last that income, exiting an that business been point quarterly with and to item bar in chart backfill several any the we out exceed the
quarter Moving to from first quarter. $X.X down $XX.X million expense was the Slide million, for XX, the non-interest
mortgage origination and changes several expense categories. These in Excluding majority the to the of increase asset benefits second recognized offset by non-interest the well increased basis was primarily the in in comparable salaries on Deposit expense higher The composition quarter, costs quarter. premium as year-over-year due operation of in to $X.X the due declines incentive related insurance exit and increased a activity. portfolio. partially employee compensation and of SBA in growth first loan were million to $XXX,XXX other increases increased the
the I’ll of in just quality Now around the quarter color in quarter asset let’s losses. commitments, major charge-off the allowance increase the large the unfunded $X.X during provision asset comments; The provision in for participation the charge-off $X.X to included XX. quarter the and losses in some second the an his Slide turn David million net partial add was quarter second compared reflects million to for the first for the C&I credit The for of provision which loan. credit quality on components quarter, and activity reserve covered offset to offset the economic to losses points of forecast as June a a the on credit positive in portfolios basis impact total credit points portfolios. on positive of XX loans credit by and as coverage mentioned earlier, related for the of allowance losses decrease March XXth for the XXst. was C&I higher the partially losses by data forecasted quantitative The XXX certain of as of The compared portfolios. ratios factors impact certain for the economic reflects rates on SBA allowance loss percentage partially basis allowance in and for
X.XX% Excluding portfolio, the credit losses of balances. finance the represented loan public allowance for
the on capital respect basis equity bank declined as points partially our XX, the rates solid. the remain X.XX% company both an tangible increase due little for of overall With and XX and at ratio comprehensive combination common the to shown income Slide ticked capital at quarter. quarter The a higher as levels to in accumulated interest repurchase the end share activity to other by loss net offset
growth was ratio equity common tangible maintaining the and also during earlier, balances. impacted higher quarter cash mentioned David the As by deposit
comprehensive common the for capital loss If the X.XX%. perspective, balances adjusted strong million, other at equity capital and cash a very of equity ratio was From adjust accumulated XX.X%. remained normalized ratio common regulatory Tier $XXX you tangible exclude X the
have the quarter XXX,XXX of stock repurchase During In repurchased since of per part programs stock of stock total, share our we authorized repurchased XXXX. million average common price program. we of our an at as under authorized $XX.XX our November shares $XX.X
share at repurchase to year-over-year. result end, a almost quarter share tangible $XX.XX As value book of activity, up per X% increased
higher our activity, the which continues on $XX.X the fourth connection to to and the XXXX, $X I provide level comments, my million in would SBA non-interest In mortgage of guidance. SBA additional forward regard million to for expect up which and million fourth first With million income comments grow origination to and components third Therefore, originations, team million to deliver full $XX.X we the be of million now to of do This to wrap for range as previous expense expense expect the compensation in excludes increase quarter. $X income third range in of full for $X to some range total as $XX.X quarters, approximately equates million related recognized our earnings. costs be we year, equates a well. I above a of year to non-interest million of $XX.X $XX.X consistently million like non-interest expect $XX.X of the in to to the the we range to approximately quarters. with Before increased
interest longer, strong for Looking to we stable deposit the the the continue net stays banking ability operating with trend improvement if produce mid-single-digit portfolio forecasting share. When costs as forward Federal are in growth. improved an loan be in an generate as a XXXX interest earnings to XXXX, Even north optimistic the and growth expenses we SBA higher upward service combined in to of per a composition continued extremely increase. and per are of about should income Furthermore, net income margin. share earnings fees non-interest should to currently Reserve $X revenue growth adding percentage
I will it take that, questions. to so can With your turn we back operator the
