Bob, good everyone. morning, Thanks and
$XX.X net Net strong growth with the they our $X.XX interest loan and points --operating higher XX% basis from and from million XX% We net of we're Operating the income quarters quarter share. was the income quarter was per same QX. continued third $X.XX rates second or the net strong income for was income As interest rising per and share. million in second due think quarter income in increased Net diluted first higher XXXX. very quarter from pleased demonstrate quarter the the results of this were with was XX quarter interest margin Operating net our income pleased Bob prior for to very than mentioned, $XX.X or year. momentum margin very growth. net diluted and the as
by Our asset up yields and points our quarter, basis increased funds XX in basis of points. eight was the cost
XX% of all had in with loan major XX% an mortgage also We loans on growth a loans strong organic up commercial percentages up are X%. were annualized portfolios All our was growth of and residential consumer quarter-to-quarter, these quarter basis.
shareholders under share, our X.X third to of Our per program payable share record on a XX, board December average $X.XX We price quarter December in an of repurchase at dividend on XX XXXX. repurchased $XX.XX. approved of shares million the
some I'll make the balance on sheet. comments First,
were Assets billion. All annualized, relationship offset annualized we were $XXX million by to million. added an were quarter. quarter. due embraced down million $XX The $XX were up securities value. while $XX were loans down QX $XXX at down the residential last and was million market mortgage were Loans were in XX% annualized borrowings ended the described organic million $XXX the cash $XXX equity portfolio loans of $XXX million were were of Deposits and up up quarter Commercial in million driven to million or up from million. $XXX for was million primarily $XXX home consumer loans loans major loan down categories by quarter and up and the we X% reductions or $XX in loans XX% increase
above, were and to expect quarter. a market from about market challenging deposits the expected down and that that little call tightening on materialize the talked price did increases forward, As continue. was million going last average the there for we second deposits we $XXX mentioned in We deposits quarter, in and although the change it
due AOCI increase purchases pricing capacity offset the earnings. quarter. in some We quarter used share growth borrowing fund to the by $XXX have our of our adjust decreased an million in to lower remain Shareholder retained loan and in deposit partially competitive begun of to to impact have the equity and
mentioned, diluted our per of QX growth. than strong million $XXX.X share. As diluted or key earnings was reflect many from per feel very I higher $XX.X net GAAP operating were Net was million income $XX.X or progress XX% higher and or areas. benefited and loan million income interest We and $X.XX $X.XX million share in $XX.X results strong rates
million we points million million assets higher modest reduction quarter, QX. a increase. the of was rabbi the primarily $XXX,XXX provision Asset primarily revenues interest to on quarter mentioned on provision in small points growth third changes $X.X the Loan $XXX increase excluded yields were provision incurred eight income items year. QX. and million XX was $X.X in combination X.XX% $XXX.X due quarter-over-quarter, up QX, in compensation. in and allowed we the $XXX.X service expand Both basis compared some the prior points. due to by line XX margin started increase as incentive million an operating $X.X $X.X our in factors. quarter and either Non-Interest losses The basis, was to to to $X.X X.XX% to the practice were Non-Interest to a quarter our driver line the due was stock the overdraft ACL funding compared salaries increase are of for in of in prior were up operating see to loans in This The operating and in costs losses increase security year. value trust charges were down compared insurance earnings. calculation of primarily million $XXX.X sales. in quarter operating We the our with generally non-interest basis of million On million from Other the and in $XX.X in basis $XX.X same earlier market in due the quarter. million to an due was the due in net was million in This up was an the from to basis QX from million declines to the $X.X or million down from X% deposit was expense benefits. in a was to XXXX expense QX. the loan
was and due there lower increase tables in during quarter to the outlined press expense As is million the presentation, in quarter. in losses benefit the trust release of the rabbi non-GAAP $X.X a the
I'll Although years. year comments there expenses later or rate are expenses on in our XX% in rate slide. tax for outlook the QX include total full were prior some in the was line guidance the and either presentation. for the with Tax we provide outlook quarter on in
tax rate average marginal tax the higher -- Our than and will will increase. rate projected rate is the the increase increase, tax average average earnings as
over are NPLs in moved of in the charge-offs reserve to status NPLs a and to coverage continues The at QX net loan quality in reduction zero, off there levels loans at non-performing close sound. be Asset full were loan third XXX%. very we the XXX%. to is corresponding QX, paid end and was non-performing our very in quarter, low Through to
through any the to portfolios, adverse portfolio management don't all and delinquencies at time. commercial portfolios consumer early of monitor nor this significant in risk portfolios our our our internal continue We in in carefully see processes trends ratings the
We continue carefully. to quality monitor credit all trends
review I in a total pages growth X% of As primarily allowance make to $X.X quarter maintain additional was I comments. outlook the the was loans. due provision and mentioned, about sufficient million loan of some and to our wanted
challenging, expect the continuing our is net to XXXX. for in we improve QX environment increases the interest into and Although rates income
see interest X% XXXX. to in the early $XXX the a million, range to rate expect year $XXX to margin the not teens. net million our XXXX for and into growth expect if would full We XXXX low income percentage over see low in net move We XXXX we net interest expect to interest XXXX year of have income late full range in
high loan an and but slower expect XX% We in Higher commercial annualized strong XXXX be a and was loan another of an for to basis. would are loan above the record into We in our levels QX to target growth XXXX. rates ex originations than in impact down, we have as on growth expect growth expected come long would slowing economy term transition expect single growth a those digits. commercial mid QX. expect quarter we to produce QX to rate generated to
views our next update quarter. will We that on
mortgages described in with arrangement that Given home residential flow to the the embrace loans outlook the we our generally, decided last on for change call. have we discontinue liquidity
working the our for has program deposits and Although appetite. the challenging outlook liquidity reduced was well,
we very would in quarter feel good We pipeline loan in slowdown XXXX in market. and previously the growth reducing fees hedging mortgage We mortgage to mentioned change mortgage non-interest last deposit and asset about XX to non-interest to due out as We income described the completed on we QX long described expect program -- service charges wealth, conditions. benefits still expect growth call for million we due hedging we call to We on the completed overdraft of not program sensitivity. $XXX our the the the the from the term last pressures our organic reduction in next decline general There's $XXX existing market over no the in close last on will days. the guidance expect our due revenue in income do XXXX. rate to swap and interest on million related to
our are XXXX. guidance adjusting operating for non-interest We expense
-- prior million for up expect from million be $XXX to between we We the slightly and expect $XXX expenses guidance. XXXX,
be We a these investments commercial to critical teams and technology long-term and are in will advantage. success confident continue our are invest competitive our and to
rates hires investment. outside in year, XX% and we infrastructure on QX our earlier XXXX. The the XX% faster and an at in were we've experienced QX in to early pace addition commercial to the In we the commercial the grow annualized support needed added we've for growth that experienced mentioned loan and team, dividend
as is expect long-term early salary drive We our as salaries then This and we in account and would -- in workload scale in in general the in these is X.X% benefit late costs of of end of increase which benefits levels well in and above this up also challenges our would offset the for along have higher to colleagues. on inflation both excited salary with are is some X% the XXXX of our in also that at our more We and XXXX. X% years. be have colleagues about that inflation in wage normal that to we for opening will experience 'XX increases and our included growth prior in wage and declines. increase costs, pressures expect XXXX. are to stream be as return our Included The coming this to healthcare expected to some lower will combination customers investments the help made investments digital well adjustments technology XXXX we
expect occupancy, single services, the have expenses We second quarter QX marketing commenced year. for and other total increases the of professional for repurchase We other our shares. major expense and in line million authorization the the items; low to digits the in share purchase X.X
on outlook mentioned future as will slide, determined by we the market conditions and considerations. capital well as As be purchases liquidity
we we pension use the QX settlement I required As a XXXX in will out defined recognize related will point the in to benefit explain outlook, charge plan accounting for our pension that in of a moment. for non-cash
will which $XX on of pension incremental that the to end is million. the August the estimate, based of million be very at range Our preliminary, data is preliminary expense $XX and is likely in
retirees distributions during exceeds accounting threshold, pension pension year. total by year amount that lump-sum from a service plan the and of which As other of to the is former settlement total background, of GAAP requires our if settlement accounting taken amount calendar cost and plan employees interest for the the Eastern use
Our further for required threshold expense use estimated learned pension that the payouts to the actual will is after QX to anticipate this accounting accounting disclose we year, will intend plan for the finalized, promptly and all pension stands incremental million be therefore accounting our We In the to for be publicly to opportunity quarter December. see and XXXX. $XX required a apply in of settlement our the our market loans New preliminary. through in lump experienced for administrators year. to and in which incremental century complex and accounting Hampshire. accounting settlement calculate retrospectively total is therefore of commercial pension early the penetrate for for continue in We settlement actuarial resulting growth we last expense test improvement year will million The charge $XX we work it's closing, our acquisition Southern XXXX from rate threshold of market Massachusetts amount to market. out settlement XXXX sum an deposit the share We in Eastern throughout the exceed great the our of
expect the are are be we're growth. market Michelle? in confident long-term well XXXX, we excellent that positioned very to and Although ready we for environment Thank challenging we questions. much, an you in for
