good morning, everyone. and Millar, you, Thank
I Slide X. number will investment discuss Turning our first to portfolio.
investment reported $X.X quarter the balance quarter down billion, securities third $X.X from Our year-over-year. last and was billion
investments of quarter, represented higher-yielding comprised the of line securities, Similarly portfolio, end debt. portfolio, year of to purchase XX% financial quarter, available-for-sale in the to from last XX% the Notably, in third third corporate we XX% XX.X% particularly of institutions the with quarter, continue year-over-year. the period. securities the corporate debt our subordinated As ago up rate in the the floating
net $X.X In addition, securities. gain debt the of a quarter, sale we this realized on of million
We which billion, associated That driven end of the consumer our by activity loan indirect the the participation and total underwriting third pandemic portfolio. Turning quarter, class were quarter. loan XX% end the compared loan At saw asset credit increased X. primarily second strong with slightly provide of up this $X.X by continue more quarter-over-quarter, stringent million lending. by or in to our decline to an standards X.X% activity, overview said, impact in to number we the $XX $XX our loans of Slide The or million economic production.
rate interest low taking of We have home of seen also equity consumers via lines credit. advantage environment
land X% loans. loans million used estate $XX increased residential real development multifamily and or Additionally, mainly construction quarter-over-quarter,
color provide top particularly to Turning quality, in our quarter, be successful. the continues Slide some to in which Millar a on efforts quality third managing our to highlighted current before. were I the credit Carefully environment. priority, And Amerant's X. would macroeconomic like credit
the for liquidation loan and requirements for was the the lower an $X.X reserves XX% Trader, to million, loans we the quarter. any the Also, requirement quarter, Coffee to information quarter loan $XXX second This compared a to XXXX, end losses $XXX during a in these million we we third by Coffee lowest at quarter. we obtained reached noted on million for First, the the reserve COVID-XX Trader. of announced last million $XX during driven its of related charged the reserve In of of close losses on by additional million. our decline allowance second third Amerant the the as $XX.X provision compared recorded off significant at largely quarter quarter, the third the of recorded quarter, increased down quarter, unexpectedly specific Based plans. which the
Coffee reserve As to specific of the as of of quarter. Amerant end the $XX compared $X.X loan loss for this second the XX, million was September million Trader
liquidation the ratio XXXX. the basis $X.X monitor year-over-year. nonperforming The assets and assets XXX to up quarter-over-quarter at Nonperforming million XX XX year to from closely. compared end totaling the quarter million $XX.X up process million total $XX basis continue points, period, basis third was of to points quarter We ago second assets and of the very the increased of points
in from is continue proactive quarter third said, coverage with monitoring diligent the impact As credit reserve pandemic we're on efforts and challenging, the so quality and We we will being and the situation. these quality in forecasting to our do sound benefit forward. strong the moving while credit of
Turning Slide X. number to
market quarter. that increase loans decreased see and in variable nonperforming second was XX due This the on can compared points lower You largely the to our rate basis loan rates to yield the loans.
higher-yielding corporate and repricing declined to floating rates. impact prepayment investment securities, market mostly due this of purchasing institutions bonds, Our We lower also largely offset yield at acceleration financial by partially debt. sub reinvestment
This CD to customer aggressively combined lowering decline by were quarter-over-quarter. in number In Total businesses. the Slide primarily continue of at with strategy XX. was third a improve funding to the aligned end deposits. cost target This reduction by relationship time down broker and decrease to X.X% and deposits X.X% Moving billion, driven quarter profitability deposits. $X.X third lower money we quarter, across market our our the our repricing rates was
of deposits cost third basis our of points second down result, interest-bearing quarter a the in to the XXXX XX quarter. was compared As
observed have increase on utilization loans. deposits PPP we an in of Additionally, the
in continue funds. business the small customers trend as upcoming similar a expect the quarters these using We
during restrictions. an $XX annualized largest the quarter, deposit representing in an in decay In of annualized the activity XXXX. second the quarter, prior government Foreign increase growth deposits the saw as local or X.X% international third base, to Amerant the economic X.X% X.X% million COVID-related of compared an of our decreased compared relax to Venezuela, quarter
down deposits of X.X% the rate the of I'm modestly only in to XX% saw were deposits quarter compares decay same the year. last and pace XXXX the was period quarter-over-quarter, as encouraged in while decline So annualized still we slower rate foreign favorably third annualized by
the to continued work with services capture note, $XX Importantly interest-bearing relationships quarter. with existing our our a expensive by this also of reached new to improvements the funding execution CDs. deposits continue wallet Amerant's deposits depositors. quarter with Amerant less customers, note charged. and broker-dealers strategies from and reflects to management source than want to we fees represent These selected international relationships reviewing and being products profitability, share third to our team bank's relationship-driven quarter, such engagement hard against In and customer-centric from focused with begun broker to cross-selling strategy. I end our grow I and million strengthen customers products increase deepening cross-selling to treasury highlight our improve deploy the and as want
We to customer calls our continue also daily drive contact. engagement ramp and up customer targeted through
results As have materialize. a a to see positive result efforts, begun we of these
possible approximately team Amerant quarter, captured strong $XX new by made million First, assets our the this customer investment of members. engagement of
program a opened aggressively which door Amerant's prospective Second, opportunities, the participation deposit new to the and PPP in number pursuing. lending we're of
Finally, announce that Salesforce, using than our now we are of milestone are pleased more in teams digital transformation sales to strategy. a XX% our great
continue strategy share expect efforts wallet We to quarter. to of these our all fourth and the customer increase drive in
XX. funding some strategy. around Slide to provide wholesale I'd like into Moving color Amerant's
As the you to savings during maturities fixed on of order XXXX, in interest environment, which low XXXX. may for recall, million rate the million quarter cost the modified second a in manage advances resulted rate the $X.X $XXX FHLB rest we
to wholesale the into funding we of XXXX, to and year market For the leverage continue will cost. the actively in opportunities decrease remainder
The was securities variable modest items. interest of P&L the at market million, the sale we on a available X.X% second lower rate XX% down for the $XX quarter-over-quarter as and market XXXX by On decrease XX, rates was and quarter down XX, driven of third XXXX. our lower XXXX and yields to and Turning income reinvested on average quarter repriced slide from the quarter balances reprice rate. net third lower from Slide loans
before, and customer to in we and able interest quarter, money quarter of balance decline rate rate. from and in CRE This we the points the were issued XX senior drop second with with million This Amerant's volumes. proactively we offsetting impact higher XXXX. consumer continuing experienced efforts interest cost market quarter expense and June, $X reprice basis We as at of of were broker in deposits, associated back deposits time also average by save an loan driven overall deposits about deposits a was the to lower lower of this notes full deposits time explained partially and costs
renew We choose also to not customer CDs. maturing expensive
to As approximately expect mature million we next $XXX held of months, deposits time the the much a quarter, we which rates. at reprice end of six the in to lower
expect we headwinds. cost to result, average to XX CDs points, a basis margin us As of decline helping mitigate approximately
the this was to which loan interest-earning in our offset Now due wholesale by factors borrowings, in volume. year-over-year largely discussed interest prior decrease driven as lower past decline meaningful was a result This decline this primarily assets in turning net to income, again yield quarters, the the quarter's of was rate average deposits partially higher the cost March. emergency Federal and of Reserve's cuts preferred and by of trust to redemptions
only seen have dropping NIM inflection the in almost quarter. second we quarter, this our to During reach an X.XX% basis points third X.XX% five the in from point, quarter
as the strategically rate, implement well the of including: of of approach money offset minimizing time actions the continue first, to pursuing cutting accounts we interest proactively we including impacts funding relationship As funds, as to year, opportunities. and several and the low rates cost deposits on market lower-cost end
during enter investment in current optimize our balance help yield spreads yields. and evidenced and quarter, into And portfolio to sensitivity continue strategy and improved the momentum evaluating mitigate via navigate an remain in build on sheet extensions trend produced and rates the of portfolio renewals us implementing on the as manage higher by actively these third we to We our in This the our spreads NIM increased in market to market. implementing C&I managing through impact actions focused credit Second, third, duration. order floor to environment Florida optimize and and XXXX. to
sell net securities. recognized $XX X% far to by compared buffer our largely Slide this we second we We the million income sale quarter-over-quarter to a gains XX% Moving income on the in net $X.X of as net the million million a in million the gain low year. impact The year-over-year. continue in noninterest number quarter XX. gain to so on in up securities quarter opportunistically NIM. of in rates recorded gain $XX.X quarter-over-quarter $X.X was of on have Noninterest higher driven securities order net sale into Notably, was third increase and interest or
an wire fees income with was wire other fee rebates. higher a quarter, in the Additionally, search this elevated as derivative volumes month the and connection due as transfer by quarter foreign transfer deposit transaction decline higher a in the driven well increase were service to in normalization this of bond offsetting were in second in fees of that the and issuance June. increase Partially in brokerage company's
primarily in management increased in of noninterest slide our income was to and due we was domestic advisory Moving $X.X execute customer – increase debt on going is custody wallet to mainly new This in XXXX. meaningful This the sale and acquiring the increasing base. and and increase gains share and under to against Amerant's assets and relationship-driven We customer-centric to million year-over-year, the net $XX of brokerage billion $XX on by quarter improvement the of securities on due committed assets the fees. our third AUM XX% new additional international forward. to recorded. million strategy as base remain growing moving
Moving into Slide XX.
quarter up XX% down million, year-over-year. expense $XX Third XX% noninterest and quarter-over-quarter was
of This associated of of largely to salaries due $X.X of expenses consisted deferred employee quarter-over-quarter the other which is the PPP and higher resulting other million salaries absence origination employee of loans, benefits increase the other benefits from and operating and and cost with direct the expenses. $X.X operating million
impacts following Partially across services we due costs offsetting incurred activity marketing from COVID of decline quarter. The lower largely other higher we and increase the slow fees, professional explained this expenses to to significantly were Additionally, in COVID-XX. as programs declines Amerant's employee resume FDIC as efforts second the as well expenses insurance, tax expenses and benefit by deferred realign expenses. stock salaries was and compensation due year-over-year compensation
were expenses, Partially related in and reduced higher as efforts. transformation which have accounting other connection efforts. consulting noninterest FDIC our these fees declines ongoing assessment offsetting our costs marketing as transformation and to legal and insurance also were expenses, well increased fees We digital with
our remain Looking with improvements. committed efficiency we ahead,
the the near In digital term. nCino for well the This providing customers particularly, and continue While all the bank as of across out includes the our the streamline a and in campaigns achieving used use on to would to rollout to lines onboarding be as fourth like help of marketing expect rolled and us We Salesforce importance ahead. commercial journey element our transformation servicing finalizing emphasize cross-selling Salesforce all I year. process. to we business as will retail for of will quarter. end in focus the of nCino next integrate the customers. Salesforce milestones by key
the the loan retail in On Salesforce two Also, origination as management generate be will nCino closed. will fully banking side, origination, integrate portfolio and announced, will with underwriting effective and centers efficiencies significant tomorrow, it stages. previously
We a banking centers plan severance involuntary analyze continue earlier retirement part our of In optimize efforts. and approved Millar's voluntary Amerant's line retail this an will early as as well as plan remarks, Board early to with efficiency month.
eligible plan, voluntary have participation. XX their the employees days confirm For to
will year. impact overall idea of these get later an the of initiatives we So this
the in our look and plan provide few an severance our voluntary to are fourth efficiency to to a annual IPO. and expected with starting we employees impact moment result million one-time in by months. $X.X call would the I XXXX. termination the $X.X of since to These take quarter be XX the back like on approximately plans savings a On million time the expect costs update hand, during cost completed over efforts other quarter fourth earnings we will in of in year-end, approximately in
XXX a quarter FTEs. we third the of had As total of XXXX,
million the voluntary I and reached acceptance we efforts. our noninterest FTEs, XXX was the a to adjusted had reference into assume continue FTEs, last compared XX% of one two this as separation which We And XXXX. $X.X experienced plans up $X.X expenses XX% quarter. If decline. XXXX, a approximately to which restructuring rate expect XX% would described of the the quarter-over-quarter million, take In to we million represent just of similar $XX of for the of end the plan XXXX, in a represent expenses reach quarter to we compared year-over-year. quarter and We down account as metrics, have drop XX% XXX third
staff the the includes $X.X $X.X Restructuring in million decreased year. costs. incur cost expenses of to costs quarter year-over-year prior due transformation in digital the absence of quarter This expenses million increased third efforts and related the rebranding reduction in XX.X% and transformation
on Slide to XX. Moving
have order on an and impact to mitigate in rate, continue position to the portfolio. lower interest We manage the actively NIM we investment asset-sensitive from our
hand remarks. will Millar it I for the Now to back concluded
