R. Rosato
Please posted website, which a Thanks, Denis, of my to note, number in those I as morning, we slide will review and everyone. good on presentation our encourage a have commentary. slides you we reference
a partial impact quarter the XX, the third quarter. July providing a reminder, Cambridge on As merger to closed
on Beginning Slide with income highlights and the on X. Slide statement X
was the $XX.X net was positive enhanced quarter with net per million demonstrated addition XX% XX% to a very income of or and was of $X.XX $X.XX. company earnings quarter performance On income GAAP increased million, income share. $XX.X the basis, share fourth Operating per the Cambridge. quarter. the net up linked Our financial operating fourth power for
These basis. highlighted by margin expanding results basis to X points an were net on quarter interest FTE the in that an increased X.XX%
while basis increased tangible was on We of are returns. up pleased common return linked in points from average in equity operating ROA of with the QX. basis X.X% Operating continued improvement XX quarter, points XXX XX.X%
revenue. for to quarter operating the improved second XX.X%, consecutive ratio the In addition, efficiency by driven higher
levels points. reserves as a maintain and balance year-end XX.X% credit by CETX losses a for with of exceptional of We allowance capital of sheet strong basis and to XXX loan reflected continue ratio
move the loans investor We through office continue primary credit with focus. a cycle to
were credit we took accounting. charge-offs communicated quarter, the were of established quarter through basis Cambridge Though PCD from in reserves had As loans last these at with our last specific that acquired significant from marks merger, of points, XX Cambridge merger the closing we elevated the most quarter.
we improvement to our that that on is $X.XX More we billion to Importantly, and are announced financial operating that accelerate in later. accretive also repositioning this of executing be expected on performance will investment in portfolio $X.X EPS a XXXX. quarter
merger-related rate improvement Moving earning margin due well XX basis Net margin recent just to ago. $X.X financial reductions as costs demonstrates in positive with margin The of a in quarters funding Slide points lower from merger the on and expanded assets. as This points increase X. to interest increased the income and ability million above Federal the average to is the basis X trial manage the the Reserve. X linked Cambridge quarter impact our
asset XX points. a in our yields basis compared points Our decline X declined cost liability of basis to
driver Slide On $XX.X The $X.X an linked million $X million, million of million business basis, million. income up with to of our X. operating noninterest wealth quarter. noninterest income of the increased was was of fees up Total increase $X.X $XX quarter. million Turning total largest $XX.X linked
of included the in quarter. $X.X fourth onetime item this However, million a
or item, $X.X management fees were this up linked quarter. wealth Excluding billion XX%
investment gain Numerated due to Eastern's growth other November. in to which and was $X.X Moody's technologies, noninterest million a sold in Included income nonoperating
was see are and As a fintech originally reminder, within was Eastern startup to we that result. Bank, developed Numerated pleased this a the
execute waived. this in forward. We service of sale will swap had low-yielding incremental deposit margin provide nonoperating We going increase a paired in the loss as charges a gain for on the previously fees securities the customer quarter, $XXX,XXX of fees $XXX increase $XXX,XXX base saw benefit were and This that sale million of which in to reinstated leveraged Cambridge million. $X.X customer we a
million. On of of quarter was million impact $X.X X, Cambridge driven merger of operating On linked noninterest noninterest Slide $X.X were basis, decrease a was million, the the costs an costs. nonoperating from increase quarter quarter. $XXX.X million, $XXX.X down quarter $XX.X million, partial merger-related by million, in expense Fourth $XX.X due third to lower expense an total
the to sheet. Moving balance
start deposits on X. liquidity our against position deposit We as saw the stability with reductions. total Let's cost excess for in Slide deposits we balanced quarter
Our in CDs favorable $XXX Low-cost mix of million, deposit deposits the XX% accounts, comprised which while quarter. $XXX million. improved total of very remain declined increased and balances, checking the
funded deposit with fully wholesale be to continued no We essentially funding.
deposit basis in We XXX basis by quarter. were to costs XX to reduce the able points points
to the costs our XXX As along of pass our basis rate Fed points, depositors. deposit cuts demonstrating were to year-end, ability of impact
to continue to lower downward the similar actions Looking costs. our of or and continues while support during Fed experience we It CD modest recent with XX% to will to deposit target XX% tightening book cycle ease, about Fed monitoring ahead, repricing competition. balances to will relative lags the deposit betas the our most
exception was and lines On our new as in home pipeline were steady at in borrowers. the both growth with The existing commercial quarter loan to were business Consumer maturities. approximately the of demonstrating paydowns $XXX essentially commitment million, quarter. and flat Slide offset loans and support X, million remained the equity new ability $XX with
to loan to Denis new opening we remarks, able to there we'll the remain in so and his are headwinds growth ready and continue growth As opportunities. mentioned in explore land environment
understanding exceptional we local an loan over serve and communities, the growth positions and have within markets differentiate a relationship to which managers We drive team deep us our of Eastern well of time.
in to and my portfolio the that of of discuss to year-end. increased quarter Moving in had purchase this as repositioning sale quarter We securities X.XX% Later to the portfolio some first in the on we're XX I'll year. points the remarks, basis activity the portfolio X. yield undertaking Slide
shareholders. Capital which Slide to to continued ,for in XX. at an levels average $XX.XX, total cost shares to and return $XX.X $X.XX of VWAP remained was robust we below the capital We of purchased a billion. price XXX,XXX Turning quarter the
end repurchased of have in $XX.X million shares additional of also We cost total our now a yesterday, the remaining July. XXX,XXX runs and authorization that for million an have shares through through X.X
diluted shares Our million XX. of were XXX.X common December outstanding as
approved our in $X.XX first Additionally, dividend the quarter. Board a
Looking quality at overall asset on XX. Slide
$XX.X by which investor These office $X.X evidenced points quarter. $XXX Our reserve third or million million losses basis totaled at that allowance or were reserved remained from million acquired basis the loans was an in points, of million to or fully XXX average quarter. closing. are to The down loans, compared loans. in strong, were fourth of million levels due $XX the modestly activity to driven to or points approximately of increase PCD XX by loans Cambridge linked XX $XXX basis mostly primarily total basis metrics quarter XXX points as charge-off loan for Charge-offs
were reserves. quarter to this important specific that XX% established previously is of note It from charge-offs approximately the
As last potential of $XX to the set a million non-PCD a with total aside the PCD charge-offs. loans reminder, closing we provide for and on future merger Cambridge quarter, coverage of
decreased in points in office of loans. $XX.X to This X.X% by offset the partially increased Criticized $XXX move the to nonaccrual million quarter XX million was of the total loans to basis million charge-off classified $XXX Eastern and loans million investor quarter status activity. driven Nonperforming loans. X total by or loans, or of $XXX
great are the pleased with and We by our work reduction credit team.
credit space, see over the would quarterly year. course be unexpected However, it as to not fluctuations environment the evolves office the in the of
quarter, the Eastern line Finally, we with Bank recent in legacy in provision of booked $X.X million history.
provide and On office CRE details estate total XX commercial Total we investor loans on were exposures. billion. XX, real $X.X and Slides CRE
we at well is know XXX%. is Our nonowner exposure is diversified capital contained that and largely by sector. CRE risk-based local within markets occupied well approximately very to Total our
ongoing housing billion, Our very largest in Boston, asset $X.X strong class sector which at is multifamily Metro is to exposure the here a due to shortages.
We have charge-offs have decade. loans this in the last and in multifamily nonperforming portfolio no no had
total our loans. is ended at on X% office about Our portfolio the XX% million which focus office we $XXX continues total book. Slide of of The investor detail XX. to be classified investor cover investor office loans loan loans, or or $XXX million quarter and in on Criticized
in levels the Our book declined due from X% QX on to this to activity. reserve quarter charge-off X.X%,
proactive office approach managing We continue a investor to to take exposures.
assessments in-depth team knowledge Our basis to graded we credit portfolio teams reviews. actions. This and and performed on larger, on of lower credits, quarterly monthly thorough a conduct enables timely risk make the our decisive credit ongoing
that are Although to we expect allows continue and the to us quickly approach to our issues with credit us confident deal evolve, cycle prudently quarters we in the well ahead. proactive will serve but
to Moving to a be quarter. $X.X this Slide announced repositioning We billion portfolio XX. completed investment
will We low-yielding, available-for-sale the levels, process in are at rate financial securities selling reinvesting current which of and improve performance.
flexibility. financial have capital us We providing excess with
our roughly We of half to year-end. will CETX earnings stronger ratio capital rebuild by
be completed the be $XXX mid-first on loss by million, will fully and sale will The after-tax approximately XXXX. quarter nonoperating
to accretive XX EPS tangible XX to ROA be to operating common points and the the equity. to on We points to approximately for at approximately expect $X.XX add year basis transaction return full basis
Slide factors support several XX margin ahead. looking that highlights will to our provide
balance add X% approximately On just to side the discussed, the sheet, of asset we yield. portfolio repositioning the as portfolio investment will total the
a the in amortize will based to We forward loans of current this QX on rate to portfolio the begin rates hedge curve. point, year, the at also strike have market that will above which reset
approximately have the as QX of On offer we year lower billion and side, reprice CD liability current will maturities that highest in CD this is our QX $X.X of X%.
parallel position neutral is shifts when Our the in curve. yield considering essentially risk rate interest
we expect annual beneficial the an XX anticipated steepening with basis on However, point to margin a reduction million to approximately add Fed curve yield be interest to our income basis. from a to $X net
provide we XX, Slide year XXXX. full outlook On our for
forwards X% net FTE and growth to to modest $XXX margin expect year sheet market anticipated We on of environments. X%, for mix Based as X.XX% of Loan 'XX the anticipate shift be X%, to favorable markets. year-end, to with million the of with we range is deposit X% $XXX balance CDs full a to money to in to interest growth rate of due income be million X.XX%. to economic growth from a
million $XX evolution on assumes noninterest million million range $XXX and will be is client $XX provision million. be we Operating of to to of the $XXX no $XXX market While should trends, to based million between of the credit This inflows noninterest modest expense. million. income expense expect provision expected Operating currently in be but appreciation. $XXX
operating Finally, full XX%. we to expect the year and tax rate XX% be an basis on between
XXXX outlook, our common anticipate as performance, in by tangible we meaningful ratio. the indicated Overall, equity and return efficiency ROA, on drive financial will this improvements year-over-year
we'll questions. our quarter, This now and up concludes for the open comments line for the
