$X.X for the largely losses. The an $X.X was deterioration everyone. provision prior quarter. million Thank the increase million, of loss the to morning, and by net NIM during was good loss you, credit Jim, in net for contraction compared fourth driven quarter and This
continues Our remain in current the strong asset environment. quality to
for During the of quarter, $XXX,XXX. we had a loss credit provision
reduction offsetting offset by our allowance loans losses a of in increase slowing on during for and the the on sheet provision respectively. for partially and with provision for quarter, $XXX,XXX securities the $XXX,XXX, forecast, losses resulted impact off-balance $XX,XXX, held-to-maturity prepayments credit losses partially of credit slightly Although of in loans, our loan portfolio in commitments on in improvements the declined credit the
As derived quantitative on allowance greater forecast.
Nonperforming decline our assets basis credit the and is a baseline by and from majority driven our methodology loans. decreased basis places of point loss measures to allowance nonaccrual reminder, primarily for adverse points X in to assets XX total waiting the a
our nonaccrual total credit the basis loans. XX to the loans allowance points on quarter in Our for to prior loans allowance nonaccrual basis in losses credit increased increase the increase XXX% on the to loans and due due for the allowance XXX% decline loans and to in increased allowance points to losses from X to
interest While our we income, $XXX,XXX reduction expense $XXX,XXX increased in realized a income. interest net of in $XXX,XXX interest expansion resulting a in
While we slow. see the pleased quarter-over-quarter still unfavorable, to are contraction
loans our all still of environment.
Expenses increased the funds we expense driven basis $XXX,XXX, by due XX increased Cost increased on third basis points that compensation We the cost quarter. by assets and driven to deposits basis increased competition yields compensation and points interest-bearing X.XX%. Yield modestly the the competitive basis adjustments points for to X.XX% benefit by expense, in pricing, points of increased other X.XX%. to to borrowing in expenses. interest-bearing absence and to The of costs was deposit margin increase to X compensation Remaining a variable and X.XX%, and X XX by to to increased to X.XX%. points offset to by expect pressure on on reduction partially basis XX deposits continue recorded benefits current by rate
We optimize explore to to opportunities expense base. our continue
below We first expect XXXX the $XX to for operating expenses be quarter million. of
$XX.X loans Gross and sheet. outpaced quarter amortization funding. balance loan million during the to declined new payoffs the and by on Moving
X% less in in none is New million space or City. reminder, loan than office portfolio of and is a $XX our As York
Our debt slightly. securities portfolio increased
of million subdivisions state benefit securities slight of tax we political by our $XX.X purchase considering their Given picking the We majority proceeds up limited in a obligations the these X% current excess issued and cash higher-yielding yields. position, to U.S. used sold and at the gain. company's approximately
that loss in $XX.X XX%. with decreased by to quarter, cash is continues used duration assets. our the by And Deposits or higher-yielding debt or million improved X.X during quarter. portfolio to during the X.X% million the invest flow securities of $X.X position years, our provide Additionally, unrealized
earlier, slightly able us were mentioned million, which our our allowed reliance on to reduce to $X deposits we funding. increase approximately modestly Jim retail by As wholesale
Additionally, cash held our million. program declined as $X swaps collateral tied to
of Our focus X% accounts low-cost during for year. the this customers. the grow relationship banking small- to for business deposits, medium-sized the of X% of extensive competition remains number we accounts our is up quarter. fourth suite We were offer full on Despite of by products attracting an to full business businesses. deposit able number the business to The
During the by are take with And I quarter, $X happy borrowings to decreased million. and that, questions. your Jim
