their our morning, Thank metrics begin you, changes today performance discussing by quarter. Jerry, compared and last I'll good key to and everyone.
continue relationships, earnings improved of total increased with quarter. line in to to first in which the X.XX% past first XX.X% the deposits noninterest-bearing from guidance X.XX% We to second our second to XX.X% A quarter. call, the the customer compared net margin deposits interest quarter to the in the shared in in quarter committed ratio
and is deposits. loan of just mentioned, higher cost Jerry As of production this the yielding result lower
Our expenses efficiency to a with XX.XX% compared result second connection nonroutine in XX.XX% quarter in in as of first the quarter the the ratio the was Houston transaction.
Houston in compared by ROA XX.XX% X.XX% to ROE quarter the and first decreased the to transaction X.XX%, Our just credit the expenses capital and ratio XX.XX% to Tier change Jerry compared respectively, increased to nonroutine mentioned. due and the quarter. were to driven in composition. the X.XX% for primarily losses X.XX% and this slightly decreases related were asset X provision These
quarter, first to coverage X.XX% losses total period. for in recorded allowance to of the provision driven X.XX% the Lastly, losses compared loans by credit this the credit to increased the for
X. Moving Slide on to
in which account have and XX% an $XX.X for to quarter. end billion, $X.X for compared totaled first down billion, our broker to deposit of total quarter $X.X $X.X XX% deposits, to due as composed billion deposits quarter, an first international customer the an compared in Domestic were time well-diversified the increase million a continue increase slightly $XX.X for the first CDs. second totaled deposits, $XX.X Total time quarter. of of quarter We as account of down mix deposits the from as domestic million million of the $X.X by or customers. X.X% total of deposits, to million of the deposits International which well $XX.X of million or increase X.X%
savings second $X.X as or in or million deposits, core versus in quarter. on included as million of market Continuing X, billion versus the of in the or deposits up investment billion our deposits of core deposits, $X.X the $XX.X total to Slide in $X.X quarter, the deposits compared first discuss to $X.X $X.X X.X% $XXX.X quarter the I'll billion versus defined billion deposits, down interest-bearing million end a quarter, million XX.X% decrease first X.X% quarter. and the first money all-time portfolio. $XXX.X billion first Our noninterest-bearing and $XXX.X or were The X.X% deposits, up excluding demand
quarter. duration for quarter from our to represents next assets. balance at months, extended of compared principal due on the time The of investment portfolio and expected X.X higher the quarter as a support investment to quarter, to second rates maturities to XX shows and which the slightly the $X.X prepayments billion, portfolio years available lower
When prepayments of liquidity prior Our investment upper the close. market chart the model securities MBS was has anticipated right growth at the up higher the source interest-earning the first
on our that can portfolio, the to unchanged the see floating compared to quarter. the first you portion XX.X% composition remains Moving at rate of
$XXX.X the during XQ. of million investment rated with an quarter. was continued of of $X Also to were X.X% commercial note a the government as million the quarter, $XX.X indirect we estimate billion $XXX.X or portfolio $XXX.X the $XXX.X to remainder total single-family environment. of to rate will move a compared clients have customers grade. of consumer loan quarter the includes originated XXXX includes yields. quarter of loans while higher first talk a we we loans $XX.X X, the reduction billion, tactical residential and billion on increase the second speed, XX% run and banking current was of last million
Consumer loans as the the As quarter collateral. a by portfolio or gross XXXX. of
Continuing mostly has that million, second residential organic done primarily prepayment mentioned to let's portfolio. purchased The the that XX.X% at This about to sheet AFS were amount decreasing loans is Again, positioning with for in quarter, billion balance our $X.X as relationship-driven despite indirect this quarter-over-quarter. This $X.X private portfolio guarantees loans end the At This off growth prior in increase properties in second end decrease yielding up quarter, million. increase income-producing in million first compared at $X.X Slide
Moving Slide on X. to
show portfolio in Here, detail. greater we our CRE
XX% of on tier net of X.Xx loan-to-value profile experience have service each as debt conservative well based a We for sponsor. sponsorship average and years as strong coverage and weighted of worth AUM,
of XX% of and As had tier top CRE borrowers. of the we portfolio end the quarter, second our
and tenants significant top tenants and our no recognized as include portfolio XX the have retailers stores, Major banks. of loan concentration regional grocery pharmacy, XX% and We the national tenant CRE retail total. food clothing represent in
Turning to Slide XX.
a at take closer Let's look credit quality.
close X.X% and decrease remains quality at of of allowance credit quarter sound levels the at from sufficient of losses million, a provide reserve the end coverage. was for first $XX.X Our million
The $XX.X the credit second the quarter.
assets up compared NPLs assets The In XXXX, will points, basis primarily basis nonperforming loans of ratio end closed last to the of increase to loss million total was which first XX first quarter, in slides. total at first X.Xx from to loan coverage Nonperforming quarter, Jerry XXX increase of points in compared quarter remarks. quarter, down points reserves $XXX.X million loans of points XXX ratio end of basis of mentioned nonperforming to X.Xx, later the at second in his loans detail the second the up the quarter. in cover I Our an from are the quarter. due basis to assets to to the nonperforming XX the at totaled $XX.X the
color first in X provide quarter Florida, substandard. owner-occupied in mention the in downgraded to nonowner-occupied payment were during to Houston quarter and in X This on Special $XX driven commercial offset million that million changes. The mention X payoffs $X.X loans special in Florida nonperforming and updated newly totaling in in $X was forward smaller driven main mention increase we loans failures. $XX million totaling primarily $X.X loan of downgraded that previously quarter. by The downgraded disclosed mention were million, $XX.X $X.X downgrades primarily $XX.X the in loans commercial million were decrease XX, mention to show which loans and downgraded quarter performance were in loans the was drivers mention. special loans special million, were new by commercial credits changes. were
These from the in quarter these million, to see upgrades. decreased in consists primarily totaling loans Slide were of roll million financials $XX.X payoffs in substandard. loans the These decreases although X slide X second nonperforming by of special special by decreases $XX.X partially mention, and to CRE to which offset downgraded by further offset special to received as to first paydowns, increases further covenant the due the and exhibit million on Turning you were by loans totaling totaling on second due and loan other based million. this These
$XX.X primarily the million These X owner-occupied in industry. newly construction were an by loans materials were smaller Additionally, totaling and commercial there paydowns, downgraded offset increases manufacturing $XX.X in Florida, of other credit million payoffs changes.
losses credit XX, first at the Now shows allowance moving which quarter. At for losses. of $XX.X $X.X the on X.X% the for drivers credit of to million compared of the $XX.X Slide decrease the second or a quarter, million end the million, to $XX.X million The was second the quarter. provision was in of the allowance close
Houston $X loan classified release million we million as for in loan the which for and and reserves. growth. one projection $X.X special to and note to $X.X due by reserves million were is provision was million macroeconomic in primary the specific in due held of totaling and loans million portfolio a sale. reserve of $XX.X the and new and mention new $XX.X composition these to which been to million release in quality driver as million was Excluding important reserves related The $X.X the for commitments, commercial quarter credit first comprised updates $XX.X for to classification offset
It that cover booked Florida, had $XX.X nonperforming a was million charge-offs, loan
of write to and $X.X multiple million business loans, recoveries was recoveries. of which purchased and Houston-based note, fully we This off decided million there million quarter were prior Houston-based $X.X by related $X.X XXXX, banking longer-than-anticipated the quarter, of this the of quarter consumer Please occur. retail a million, net credit related they second million in given commercial book aforementioned loans. provisioned offset $X.X litigation million as $X.X charge-offs related were loan, to and in was $XX.X were the to During which to
time up as higher to or deposits deposits. higher interest million and rates average sale and securities net by assets, balances with on net on well and on well for CDs margin transactional $X.X the I'll by rates quarter. as quarter and lower DDAs was accounts Slide in as driven CDs. increase in and interest and compared income as Next, was and balances X.X% money interest-earning total balances average higher brokered $XX.X discuss average customer income and market in balance The was XX. on increase million, interest deposits lower lower broker rates in average on offset available interest by primarily second first net and mainly advances average income the official loans banks The for partially rates Net
our of deposit terms there rate for funds considering In is quarter, no in this was beta no the Fed change calculation beta, there period. this
beta the of market This and of the the rate deposits trend up combined current rate at point. flattening had of of a transactional on quarter, and the cycle, increases indicative points interest cumulative cumulative not observed a that nearing deposits we rates. the unchanged first However, basis approximately from repricing repriced beginning reflects and time basis since of XX effect beta inflection
net interest of each Moving contribution its NIM on components. margin to the to show Slide from XX we on the
higher This municipalities deposits from change for the consumer color on by higher paired offset domestic X.XX%, the noninterest-bearing for As in replacement ones. was competition CD maturities reduction yielding high-cost loans term, deposits from I'll be broker interest up primarily NIM deposit income with and market for costs reduction yielding the of X by production, expect points rates. due with of stable some additional my higher margin in short second and remarks. mentioned, NIM was the final provide portfolio quarter basis we growth to resulting the quarter-over-quarter. In in and indirect deposits of the the partially lower-cost loan given loan the the higher driven NIM demand to and
Moving XX. on on to interest Slide sensitivity rate
can within portfolio loans cycle have a structures loans. year. floors see originating of with balance our asset of rate Also, rate We when continue You having with the a incorporating floating loan XX% rate by in portfolio to sheet of repricing sensitivity XX% adjustable-rate for change currently and rates. adjustable XX% our our we our floor position
are within you indexed Additionally, XX% SOFR. that here loans, rate the to can see variable
execute downward interest to continue the in starting half expect early risk interest trend we XXXX. a XXXX rates in Additionally, second including we ALM as strategies, hedging rate of or
compared sensitivity NIM stable first profile remained Our to the quarter.
also the here negative and our to if start showcase valuation in changes, decrease seeing interest sensitivity We the of portfolio ability AFS monetary should as start changes in although show withstand to rates improvement we year an expected. later organic our additional policy to AOCI
Contributing the billion was was continue million driven to $X.X Slide due during on by This the income from by or in level market will for and manage end higher We that net increase portfolio the best of loan official advances. quarter, derivative our $XX.X loan second higher higher primarily and the the partially new quarter. a actively loss increase had security CRE Noninterest sale in balance quarter to primarily the the of the Houston gain assets was first well upcoming banking $XX.X on Amerant's up management by by million, of quarter. of income XX% income in income early noninterest to million noninterest XX. periods. under higher income our increase to as from million
The as mortgage as driven was other repayments losses also up to assets This in sheet the million $X.X $XX.X the offset $XXX increase the first of Continuing bank valuation. absence position we the quarter. in second was XQ. X% totaled or
Turning to Slide XX.
salaries higher and
The processing FTEs noninterest quarter up branches team, in in first losses the Second held increase in And the a that for with valuation insurance our the fees. with yes, than and sale XXX of primarily with volume occupancy $X.X higher investment in sports to The in Houston benefits advertising in the this quarter driven was partially which XX.X% of quarter quarter data expenses, transfer the connection lower driven connection increase to loans million was XQ of initiatives. from XXX increase increase which fees Houston loan business approximately an going offset in partnership, for on Houston sale. $X.X team in the for $XX.X and and terms derivative equipment in we the being $X.X again the due increase million in XQ sale, transactions in first expenses is increase for impairment forward the had noninterest An an FTEs, of level expenses, million, transaction. in mainly were by derivative or FDIC the lower our in increased were quarter. and as loans with and quarter-over-quarter expenses expenses, expenses the by in to charge million quarter. in quarter. connection held by ended Cup growth in higher Stanley assessments due an the higher in were prior development employee part $XXX compared of added legal to to first telecommunications our of our we fees million average We primarily
on our the the quarter. credit which now in the was transaction. and share Slide We to losses primarily expenses $X.XX the $X for per on on Moving nonroutine second this compared driven color expectations previous quarter, by $X.XX the quarter with EPS give of on third in change reported connection net for in of
I'll show provision that the diluted to earnings income some contributed the income higher elements We Houston to $XX.X net XX. million million quarter.
to the XQ. compared NIM expect with be We stable
to noninterest income, $XX be million. it we expect approximately Regarding
team members remain at operating expect towards $XX including expenses onboarding our plan. to million We the previously new growth mentioned,
mentioned. next to quarter $XX growth, I we expect million previously provision as as asset be we credit Finally, losses do in or around expect for
the
We year-end. recorded the So least in prior mid-XQ amount on related premium settling offset will This this in quarter. close the different a Houston the growth transaction while of would to quarter to premium, more with estimate than half XQ. currently will be transaction charges in at the
for achieving We It to the Jerry X% ROA for focused that in and could are as opportunities XX% is ROE XQ now future. ourselves. the we established efficiency likely primarily to I more our investing pass back see to now XX% will on we slide target 'XX continue to keep ratio closing remarks.
