was ratio everyone. Thank X.XX% to our and noninterest-bearing the XQ The morning, third total their to you, and investment the and well Houston by securities franchise begin Slide to good discussing advances driven changes on as increase primarily compared Jerry, increased deposits today to XX.X% compared to X. quarter. of metrics improved XX.X% The I'll key in impacts production. quarter reduction as Net items in in in FHLB from repositioning third deposits of last sale, quarter. the as X.XX% performance margin interest by 'XX, such the loan
expense respectively, result XX.XX% to covered. XXX.XX% in quarter noninterest million items of compared the items to noninterest income non-routine X.XX% efficiency in in and 'XX. ROE X.XX% and to X.XX%, respectively, and in a XX.XX%, was non-routine fourth quarter in Our XQ the ROA XX.XX% as XQ $X.X was compared Core XX.XX% at were third Jerry $XX.X million and ratio efficiency the in negative compared negative previously ratio 'XX.
and XQ X.XX% items, XQ to ROA was 'XX in Excluding compared ROE X.XX% to in X.X% non-routine X.XX% compared was 'XX.
losses purchased our This The credit increased investments the compared higher slower the the total and at due liquidity the market which portfolio Lastly, of loans to XX our in higher portfolio. for Total quarter.
Continuing shows billion, on to support the to billion in remaining to growth coverage right of in quarter, of and discuss prior new sold I'll investment October on next of to after investment X, duration quarter XXXX, from maturities the principal increased a securities to anticipating early the held the down prepayments and Slide investment $X.X repositioning the to $X.XX securities. months, for to prepayments to were investment compared allowance When third X.X after upper time third in the available close. the X.XX% X.XX% chart assets. subject years. were the securities the repositioning the rates source interest-earning MBS the represents reflects quarter expected model the for we portfolio
MBS the yield securities risk our you allows result to fixed it derisked MBS the third of portfolio, helps will In guarantees X% the this as this of note having to see that compared and quarter that of yields as the approximately an current rate reduce versus portfolio. portion XX% repositioning, XX.X% current composition can in we mark-to-market AFS we forward. attractive the AFS removing graph Moving going end. to our in increased the securities earn floating rate a government have XX.X% Also be of addition line, portfolio quarter. to floating The to of bank on rate with of
franchise added on moving to the loan-related $X.XX Now beginning to or year, year, XXXX Houston the million at multifamily loans MidFirst million $XXX loans based of better early sale Houston which this several million loan for were referenced. an had show adjustable just $XXX billion. Slide $XXX to on in December, in transactions November loans sold activity the Jerry We slide in and Total million carrying X. rate during value in of XXXX. the Considering $XX.X additional of the the through we we in
of of XXXX.
Continuing down in $X.XX about by the to $X.X The to Slide production in our details were the driven by primarily $XX.X These was in The indirect commercial total estimate as us billion the billion, end were were billion, single-family sale of were third the which maturities. compared loans $X.X million the loans quarter-over-quarter. at We of end to to $XX.X quarter. will in at compared the third XQ The or billion consumer the million for of driven franchise. portfolio. prepayment, X.X% quarter, million private increase off $X.X down the fourth years. includes collateral.
Consumer the December. gross single-family billion X.X% speeds, $X.X loans sale $XXX decreases $X.X paydowns end at let's loans end move the million by residential of that properties quarter, yields current and to and offset prepayment a end income-producing primarily the 'XX of which tactical customers This talk $X.X of decrease quarter mostly loans decreases of Houston residential our million, run third had portfolio sale the as we of Houston residential loan of prior by Additionally, in $XXX.X higher-yielding includes in billion, in portfolio XXXX. additional of to loan franchise clients X, with banking quarter, resulted the fourth were a and compared the a At on ending
Moving on to XX. Slide
Here, detail. further show portfolio our we CRE in
service as strong have well and XX% experience We weighted of sponsorship loan-to-value net of on tier a of as sponsor. AUM, years and coverage worth conservative for average based X.Xx each debt profile
end we As of borrowers. top-tier and 'XX, XQ of portfolio XX% had CRE the of our
in regional clothing We no national food grocery concentration include tenant the and the and total. banks. portfolio XX% our CRE as have represent tenants and pharmacy, retail Major top loan tenants of XX stores, retailers significant recognized
service tenant interest methodology risk and coverage debt factors includes multiple for like impact CRE for underwriting sensitivity over vacancy ratio, rates analysis retention. and their Our
mentioned portion franchise earlier of CRE part and slide, loans. multifamily the that loan sold loans As we were were million million a of Houston loans $XXX sale also our $XXX in the activity
turning XX. to Slide Now
we loans million special to third $X.X fourth strong. the significant decrease Let's to $XX take million compared fourth reduced quarter closer credit the the quality. a loans coverage $XX.X paydowns.
Nonperforming reserve is of million and quarter million third XXXX, the down loans of to decrease criticized from XXXX. reduction quarter at end fourth the quarter par in ratio nonperforming reducing the mention of total of value. further a After end $XXX.X loans totaled basis XXXX Overall, of of of additional in a by totaled compared and due made the up We progress and look at quarter the of million Special loans an the fourth quarter quarter $X.X After decrease of reduced of points, points quarter to the at of mention million end, to of to further note were were was to XXXX. anticipate due a to points first a $XX.X and at million XXXX. increase $X.X quarter XXXX, sale of from end, compared the further $XX.X the compared assets assets fourth quarter basis quarter.
The XX million nonperforming XXX X basis third
to XXXX, basis quarter. fourth third loan the loans XXX XXXX. with the ratio Our reserve X.Xx fourth third points basis the the X.Xx in decreased the consistent of of nonperforming are XXX at the In closed total of coverage loans to the nonperforming compared to close points and loans loss from quarter at quarter of at end of X.Xx, quarter
requiring was credit in million related million primarily and recoveries, on $X.X by commercial We million, movement $X.X quality to $X.X XX. compared million were million of at to two the primarily of commercial indirect the in Florida drivers to close related show losses. fourth factor smaller compared million of of loan, loans, million offset allowance million million due provision quarter, this and for an which a moving losses third related growth, The At allowance third was the and in million the reserves related allowance Slide million contingencies. the million quarter. net the to of loans, quarter. allocated provision. increase provision credit in drivers for the portfolio to of loan X.X% $X.X $X.X previously provision in or the in The one We consumer reserves the end Texas $X.X to quarter Now quarter $X.X $XX.X $XX charge-offs, $X.X to $X.X $XX credit commercial to fourth a included reserves macroeconomic for updates. recorded for the
decreased further. loan cash Turning one million, XX, primarily to collateral changes. the these portion of provide a retail and and portion of CRE cash residual downgrades of of drivers mention on Upgrades to CRE loans the show by quarter the roll forward the to we to owner-occupied third loan the pass commercial one driven color main of fourth mentioned loans collateral downgraded special CRE quarter by Slide the that substandard relationship relationships. and Florida loan, had from further and payoffs by the Special owner-occupied $XX of Florida loan upgraded balance and mention two
million. January, $X.X were in one loan month-to-date, reduced for special far to further So loans mention
of by to downgrades Turning one changes. driven to color classified Slide the and to we show loan million, XX, quarter the of primarily quarter these forward construction Classified from two allowance sold the described transferred downgraded and loans from mention addition provide four drivers loans fourth of the Florida on roll CRE increased previous $XX.X increases partially to of third in in by main of the losses, owner-occupied charge-offs the commercial in payoffs two no the loans loans commercial OREO, slide. These to paydowns were loan special property one loan, slide. with offset CRE loans described by substandard and
additional sale weeks. by January, month-to-date, million in currently loans one We were $XX.X far value. $X.X loan reduced the anticipate a So through note nonperforming totaling upcoming reductions in par at million of
the million now billion, deposits, international XX% $X.X deposit mix as of the our from $XXX.X quarter or of we for compared show Now international billion fourth fourth for time up Houston $X.X $XXX.X $XXX.X account last totaling composed down turning quarter, year, $X.X of while quarter, a fourth deposits, to customers. quarter the which total third the well-diversified XX% billion, of totaled deposits sale the for end million compared million to our of Slide due X.X% deposits, total were deposits to XX, Domestic quarter the decrease franchise. or to of primarily last domestic and account year.
Total X.X% the of
$XX.X noninterest-bearing of million billion X.X% X.X% down a versus demand billion or and third $X.X the quarter decrease deposits, deposits X.X% and up all core deposits, the billion the $X.X Our in third X.X% third were the quarter. in up million third included quarter, $XX.X compared or excluding billion $X.X end million deposits, fourth of quarter. versus market million or The interest-bearing $XX.X as deposits time defined savings the core billion the of in or money versus deposits, $XXX.X to as in $X.X quarter, total $X.X deposits,
from partially net net million, interest-bearing net in increase average FHLB quarter. up loans sale balances was XQ average balances for reduction rate primarily investment Slide margin and and the third deposits total repricing deposits both attributed year-over-year. Net available production. Houston quarter-over-quarter margin driven included interest Next, interest of while and rates loans was X.XX% nonaccrual the to higher fourth was impacts lower reversal to in average rates securities in The The the effects increased X.X% liabilities, for placed income on primarily securities NIM margin interest for of income as in X.X% and as on repositioning rates in for such average on and loans quarter income interest XX. advances and quarter-over-quarter loan in the and well franchise $XX.X of securities FHLB average by on items XQ offset interest lower advances, banks. lower as I'll the the sale, NIM available balances increase X.XX% sale.
The interest up and The in also in the quarter income status. banks, discuss for loans average reflects was increased net increase by the interest-bearing in the of deposits, floating with with The
points. based we cut August beginning deposit before quarter. XX In first cycle passing the rate reflect deposit the basis points basis beta as the on portfolio. The interest observed The decreases was at terms our bank the of to Fed cut period our to continued through of this the we larger-than-anticipated a which beta, of on cumulative this was beta, Fed calculated successful downward XX quarterly of rates
interest-bearing we of accounts to decrease, of to our reflect cost our funding. ease continue our expect to also rates adjustment beta As
rate Slide to sensitivity interest Moving XX. on on
You structures of sheet asset can balance see with rate our XX% year. a having and floating XX% the our of sensitivity within repricing loans
our with to loan loan adjustable XX% by when our originating change We for cycle in of a rate adjustable portfolio currently portfolio continue rate have floors position rates. rate loans. floor incorporating We
within see the that indexed Additionally, here variable you XX% can loans, rate are SOFR. to
on income the lower sheet to of compared levels is quarter. lower Our net in slightly changes interest balance to cash when to rates third sensitivity due interest profile the
investment in here of show sensitivity to as our also AFS repositioning. portfolio portfolio changes which We has the a rates, the decreased of result interest
impact of recall of In the that the repositioning interest significantly had you terms rates has at after projections time. the and improved lower this may account AOCI, that interest on rate we
to due However, the fourth of is AOCI negative rates quarter. of as market the end up since moving the $XX XQ, million
in expect as We effect organic monetary AOCI the continue takes interest in policy decrease rates to XXXX. improvement easing see to and
in losses of actively of continue during due will Houston of for $X.X the third Slide early by our and manage income $X.X XXXX. an $XX.X position noninterest FHLB of franchise, primarily was bank items, a XQ million driven the sold the following due million, increase $X.X of service third to million to million in We repayment consider $XX.X of upcoming gain the portfolio on income franchise of FHLB the October in the non-routine quarter derivative as the $XX.X million level to third $XX.X early and quarter, decrease includes deposit income to the security a 'XX items: on Partially extinguishment and lower XX. loss of repositioning from million, best and a in income gain loan of on noninterest of sale sale Gain the $X.X income the sheet of on the Noninterest the lower We quarter.
Noninterest $XX.X of million our to deposits banking in the million, premium compared gain our fourth million advances were investment primarily advances on the income. securities quarter, the Houston sale higher to in non-routine mortgage periods.
Continuing balance decreases fees. increase offsetting
or by $XX.X billion Amerant's $X.X 'XX. was in end XX.X% third compared net end relationship added up extent. the totaled from valuations, to million income million assets lesser as of primarily This to quarter, and the well large increase a million market XQ of the a custody noninterest quarter. driven $XXX.X increase new items, the $XX.X assets we non-routine as as of as management fourth under Excluding was though trust to
rent in in as XQ, due as $X.X was in third compared of loans offset The branches. and $XX.X the We we to allowance absence third other the as Fourth expenses quarter-over-quarter well a non-routine the consider the of the of derivative quarter. have an we increase of million, $X.X quarter down business XX. compared was expenses previously a by quarter in quarter. as sale expenses. associated in nonperforming XQ had expenses the the professional and noninterest was to primarily following: $XX.X partially year-over-year. related the from to of up of absence sale items, to of in that to to operating and loss resulting in less million, and sale noninterest primarily projects, OREO of loan The Houston other the related third franchise from driven $XX.X expenses.
The advertising level in million derivative million was primarily on of that increase was Houston due to Texas of with decrease expenses unwinding Turning residential the franchise $XX.X million expense Slide sale compensation were noninterest expense we with Core as fees the noninterest the sale higher Houston million other fees decrease sold investment or connection fourth franchise, that the expense noninterest due the loans mortgage $XX.X to our expenses the swap the X.X% $XX.X higher quarter disclosed, purpose increase to property million sale the expense legal of service higher a million had valuation related various the higher by the well
we ended primarily lower from third the we the the of had XXX terms of franchise. quarter, from with sale our Houston quarter our FTEs, the team, in In XXX
of earnings where share million of fourth Moving in a share earnings the $X.XX elements of the on in we core quarter, as of $XX.X related $XX.X lower diluted of items quarter. EPS PPNR raise provision by to in contributed show result in on stronger non-routine period.
I'll offset fourth to Slide XQ now income and this XXXX change average per the and for losses, of some The income share to ' that net tax net XX, and compared overall. effect outlook in diluted per per capital a expense give million. quarter We loss for lesser improvement loss credit increase partially the the is shares the to the color of reported $X.XX our on XX primarily
regarding Slide on following XX, summary, financial the would in we expectations. So say
are We of growth XX%. annual approximately projecting loan
projected deposit growth. is growth expected Our match to annual loan
this intend focus to mentioned account Like in growth. having are new improving our I ratio in on new total of continue previous We factors digital the tools noninterest-bearing to management to quarter, opening platform also deposits. treasury and
mid range interest remains Our is net XX%. the at of first X.XXs in The XXXX. the loan-to-deposit projected target for margin be to quarter
investment taxes. projecting expansion seasonal are approximately continued be expenses in $XX given and We in 'XX, XQ payroll million to
closing returns.
And executing XX% We and continue prudent to to of for with enhance remarks. to XXXX XXXX Jerry management, capital that, We buybacks I the we back efficiency second for pass and to it growth on project balancing intend half in and dividends between retaining grow. to capital comments as on additional achieve continue
