Thank you, Gary.
into Before results, well say with of him from years work like I’d him want for benefit extensive guidance I to word and experience. been He his great past It’s and I Gary honor to banking an to been and source his XX-plus retirement. Gary. the the a to in thank and about mentorship, a wish has get
to to be pattern to deeply take shareholders. by expansion, our growth I’m committed I’m hard and and the forward helm honored of carrying Board excited the of CEO and and Gary’s and company, Sterling’s trust work the equally bank’s legacy. of our I’m customers build great safeguarding of on will next Chairman chosen and to this confidence while
to choice ago, since additional is congratulate bank to CFO his Treasurer joining to come. Huber want Steve the the I we forward in addition, look and outstanding expanded and Steve Sterling. Sterling assume roles. and newly has obvious and his been welcome roles In for XX to our CFO years for many an of contribution appreciate We more
turning the Now quarter. results for to the
I is some net those will margin. just with on I’ll our discussion warranted. focus As financial interest I start additional items, where review results,
down on X was basis cost earning the X.X%, by interest-bearing the Our average in by XX decline NIM decrease quarter of partially factors. decrease a primarily was result XX of second The quarter. yield average assets, offset the a third was main point point in The from basis yield for decline in the average basis points the driven liabilities. three
the higher from by loan prepayment fees. basis negative average quarter not second fees, quarter, mainly third did an yield on point driven fees same had the benefited average yields. our in First, approximate elevated impact loans on experience which the in loan of the We X magnitude
our the of assets during lower relative average carrying yielding earning drove assets by which This the on interest approximately yield basis had total up interest the were earning the percentage to earning other Second, quarter, of X we effect assets. points. total increased liquidity interest reducing
experienced at that the prime-based our recent we drove experiencing of basis of These impact in yields, in points. our we on X decreased given resets repriced higher mainly rates loans been the headwinds decline in LIBOR-based on Third, mortgage that drop loans The amount and have on had lower loan loans. rates the benefit LIBOR. the fees excluding
of the repriced basis LIBOR-based of that a mortgage was second points differential positive $XXX million quarter. loans XX at higher, XXX quarter, the in an average whereas approximately During points basis
we LIBOR and nine points September years. for XX, basis in reprice will in first As approximately declined by $X.X two basis have third LIBOR-based the that the of XX the quarter loans XX the year. of months next billion points approximately over
$XXX X will LIBOR-based the of at the basis average rate expect in million to lower. weighted prior fourth payoff, reprice We quarter that is approximately approximately a points loans
will prime-based reprice XX as remaining as the week. approximately currently the approximately have commercial, of This floor construction home cuts and equity that this we loans, raised addition, basis prime-based are $XXX In of loans XX% at XX% Fed rates. million points our total expected represents the by if
to additional of XX% prime-based points If the in being drop total to rates by in basis then rates. would $XX resulting million loans XX floor reprice, were more portfolio an subject
aggressive among loans our of the been pricing able production keep we new Although continue on to competitors, loan to relatively residential pricing stable. see some have we
loan partially on loan was we our are That that putting yields by putting decrease on pressure rates was assets sheet X yield, function earning than in offset both being decrease of cost basis average said, The the forward. we the mix. therefore, the quarter a loans balance average a current interest-bearing third average saw our interest of new are rates point lower at liabilities, which going average during on and
as in basis accounts our a flat the of rates the Our costs, essentially shift mix savings benefit XX to basis deposits. point quarter-over-quarter, points, X declined by deposits, and but with were lower on combined time offset deposit our non-maturity costs market increase in those money NOW
we to start loan our don’t However, still feel resumes. forward. our declining enable impacting we mix new retail and deposit should positively as lose rates, on will growth our are to of fund to momentum we going CD gathering when deposit balances Despite it pricing, Gary decline, that us remain mentioned, attracting mindful want activities, as deposits we the our which
going We our believe that the with of to competition level pricing flexibility more funds also deposit cost forward. relative our our us absolute gives of
with deposits, environment respect we have Overall, rates So managing in to competitive, fourth some that diligent remains gathering the quarter. the for remain deposit loans expect benefit variables over. lower from we to control while interest and see will our in do we the
All NIM quarter. the we stabilize in expect to considered, things fourth would
increased quarter, the lower as to servicing The to Gary income attributable taking quarter quarter mortgage non-interest million a second primarily as total compared to from rights increase Our prior this was the $X.X $X.X allowance mentioned. valuation million.
from quarter-to-quarter mortgages due loans deposits our lower a needs. our and amount income mix Our different of loan The gathering vary slightly sale in our to levels, generate on will was of sold. short-term held gain on production including on were of liquidity factors, based we gain number a that success
Our due employee benefits professional million total data were by of second non-interest in $X.X and processing a regulatory lower higher to decreased partially expenses, mainly FDIC and to $XX.X related expenses, the salaries marketing compliance initiatives. million, assessments, quarter other portion to advertising which offset and and fees, expense increased
growth to added drive our and loan, revenue that operations increase and to back-office personnel corporate our We’ve support to growth. support deposit team and
business We coming quarters, back-office expect officers hire our support. corporate and the professionals increase expenses additional and development operating as in will that loan we
OCC. incur costs, the order to ongoing agreement to and expect we with our recent addition, nature one-time in regulatory compliance comply in with both In increased
our asset to quality. Moving
net quarter-over-quarter loans experienced and $X.X increase During essentially one see basis construction non-accrual metrics to and non-performing again the the quarter. of assets. of third on due points million the million quarter, in total placed XX an in assets positive did we loan represent flat were was $X.X Non-performing that during recoveries portfolio. We credit
do don’t impairment We and is loan loan, supporting quarter provision loans any rated the sufficient of losses our believe see $XX,XXX during this for more and We credits. in no there value any on was is charge-offs not or of due meaningful collateral than losses there We $XXX,XXX. had past that our any and that. recoveries
steady relatively the from of point total XX September X was basis basis loans points allowance of XX, up at second quarter. Our losses for loan at the end
Finally, buying in year-to-date. we back the during remained shares, our both third active quarter and
approximately at average share. million repurchased repurchased an at we per of price $X.XX per shares have of quarter, shares share. And we the average million $X.XX year-to-date, an X.X During price X.X
remain to active continue discount to likely front. significant shares at will that is our a it value, this If we fair trade on
confident the demonstrate our value. share Our prospects for commitment long-term to and repurchases that business we in creating our remain shareholder
ready questions With that, up Operator, to let’s may we’re have. call answer open for the any questions. you
