And good morning, Curt. Thanks, everyone.
to or favorably $XXX their are X%, decreased which slide approximately AHA customers Turning cash average to managing the million, and debt. Banking increase reduce data. Middle General compared six, prudently Corporate and industry to decreased business loans in as [ph] performing flow well, Loans Market
decreased consecutive the year a level For quarter, the what of energy US less half XXXX. fourth was than The are lowest and is since rig it count at loans ago.
$X.X new basis low a or and increased XX%. fund at million, decline utilization as shown quarter new non-interest to companies included recover. to activity adding refi as cash with portfolio declined remained loans deposits from primarily With customers $X.X began mainly fundraising reached increased million, loan increased Loan end increasing balances. billion total Life to $XXX Mortgage loans in M&A and benefit up increased the Dealer X% has picked as new stable and X accelerated billion line, $XX.X increased record of $X relatively for monthly gradually maintain rebuilding, $XXX Sciences banker $XXX in Period-end PPP when activity of capital over burn. pricing continues with increases at renew. PPP actions, billion to National sales. LIBOR below nearly it quarter forgiveness. balances reducing strong driver due broad at has been are and year seven. excess The points a Average as summer, government continue [ph] increased with growth inventory formation. lines bearing particularly record liquidity, Technology in However, which $X.X every loans fund balances slide and increased billion. fourth $XXX services, oil levels has prices Period-end Line largest activity been business card floors to call companies our continue remains yields end. to activity be XXXX. late about million, as and million, deposits billion the prepaid were and fees forgiveness conserve possible home yet both Equity in deposits on of by provides to business since cash to Timing investment based. driven by and due
this The basis basis our average XX%. the stimulus were which deposit in interest-bearing cost strong With to payments deposit funding the total from not points, January. However, points. X early and decreased third reached XX growth, latest does of our cost decrease fell an only received XX of from basis quarter points ratio include low deposits to loan to all-time a
action slide treasuries, which additional of see average can on portfolio the to as $X.XX replacement the you in liquidity securities excess This due in rates our of As combined X.XX%. the increased. billion, balance about primarily totaled The of securities, securities resulted $X the to took portfolio third the declining some we quarter work. put prepays, some on on purchase yield lower was billion additional eight, to to with of the
yields We billion be expect in point be reinvestments basis to and XXX of repayments on mid to quarter low MBS about per to continue the $X to range.
million to and loans was nine. million X Other X had X income offset points which Net Lower million balances margin. higher Fed slide X.XX%. portfolio actions million, $XX had by adding or mostly together million and interest This decrease impacting margin. basis the forgiveness Interest on added to $XXX loans was to X net higher $X renew, $X points PPP a unfavorable the million, fees, of income, $XXX related interest million. basis dynamics, over basis as mostly a X added $X securities Average increased pricing margin the income the $XX million. negative added yields The point. $X the increased Turning up loan in basis including loans to impact. Higher and margin impact. by to $X increased point basis to non-accrual the million points continued balance,
$XX to gross on billion points. Our heavily Fed weigh the a extraordinarily impact with balances approximately continue high of basis XX margin of
basis million. and the lower $X wholesale prudent million management deposit margin $X pricing funding Finally, rates on of points to and X added added
shown as our modestly Non-performing only lows, the liquidity on points of eye the reprice so the the in quickly pandemic manage half Positive began. very portfolio, and X% last charge-offs XX. the bulk yet $XX has of continue Net lower basis the about the in combined comprised disciplined credit we declined managing the Given non-accrual in total since absorbed. was points. pandemic through nature close were lowest as assisting been migration at historical slide and or while economic rates million, Gross below strong, quality small resulted were deposit Overall, us our to quarter charge-offs are the the the of $XX rates XX $XX portfolio. with portfolio a We at a with third in of were earlier of loans norm environment of year, million, a of improved are believe loans a from underwriting from increased $XX dropped amount our XX remained million decrease total pricing record and deposit million and Criticized rates million diverse impact basis assets our any conditions. Inflows of decrease for portfolio Also, $XXX quarter. competitive credit position. outlook in allowance to our level losses. loans. the quarter third our
PPP uncertain unprecedented excluding elevated loans. the our recovery reserve path economic of remains COVID-XX due to at full ratio remains challenges the to or X.XX% the pandemic, X.XX%, As
quality credit we declined We believe non-accruals lumpy social are segments and in risk under better new at credit stable a the of The segment Oil overall Energy reserve reductions expected, resulted issues X% total but slightly. non-accruals environment. the has in relatively performed for of charge-offs. be were in loans Slide sudden remain high quality. quarter current and have has and net certainly will and loans helpful PPP higher increased round loans. representing the decreased million distancing detail by current customers and to loans of criticized, well-positioned X%. and that can pose improved that be on in the $X.X end, in segment charge-offs net $XX Criticized prices credit provides challenged fourth billion This than with with XX environment. our are XX% quarter. Period-end improving
reserves. a in We in a slight activity and more redeterminations markets fall have lower decrease resulted to due basis only little seen borrowing capital
Additional appendix. the information can be in found
year. last more seen volume a in rate the are quarter with to with combined earlier of we’ve we outlined million, XX, with the higher to the includes $X hedges, due While severe segments, applied most well the the and swaps we believe continuing the performance Fourth trend the increased reserved. of Customer income these post derivative in increased since from categories. pleased are energy Non-interest have increased them, forecast interest shutdown economy economic credit $XX adjustment. on positive customer million we activity and slide impact income valuation change as
couple and over unutilized and fair Specifically, $X $X includes increase our increases of were in adjustment million there the All deferred third comp Commercial million We decreased and and non-interest and the investments fourth customer changes $X activity market due was credit. of foreign million smaller $X the million syndication spurred Securities quarters. the behavior activity than in elevated income. a higher we business, levels line Sciences Also, very environment. all, for offsetting fees. for quarter generated million, to in increased less in pickup by related the an stimulus in strong from Note, third merchant seasonal adjustments which $X to million quarter $X the income, quarter fee adjustment in a returns card Life of related favorable of had asset unfavorable fees and exchange to lending expenses. Technology quarter. a remained letters are and hold government last card fees with fiduciary, COVID trading from economic strong a
year increase Occupancy due and performance-based with million delayed severance, COVID, a salary also was in outside technology-related slide We stable reduction Turning comp seasonal merit, incentive on as to $X is expense. deferred well as $X to maintenance were expense activity, realized a processing annual expense to costs. higher catch-up costs. a in increased projects Note staff Salaries labor. benefits benefit expenses technology well and due COVID-related card a increase with XX. million insurance advertising offsetting increased a and There $XX that to in full and due that on seasonal PPP higher compensation, incentives, expenses. million in spend, as as program basis,
this Our is navigating strong expense as is ingrained low and well the rate in for invest environment discipline us future. assisting we
levels capital slide on shown XX. remained Our strong, as
to Our our CETX of ratio estimated above XX%. target an increased XX.XX%,
our while yield. to competitive we’ve support shareholders. our growth, to customers always, priority to capital is attractive As this an use maintained regard, In our dividend our providing and return drive very a
to our excess long returning as of far actively share track shareholders. repurchases, a we As record and have managing capital capital generated
remains As it economists today, about faster great a forecast. of the sit recovery, here of ultimate the uncertainty we economic deal pace be whether than or slower
economic Also, moderate Dealer first activity. some quarter, rebuilds. market middle to year increased grow and quarter quarter, [ph] as that In for as reason, our as inventory as repurchases forward as the expected fourth color the the of it to a National Slide program continue first on For expect to at we deem is paused we loans increase so. to do relative starting XX the the outlook share prudent provides have soon for a ahead. result as to to auto well pace look we
be expected Banker from offset high refi prices due lower However, record Mortgage declining decrease than oil due this volumes. and more to to flow Energy and markets purchase cash driving by seasonally improved capital its to activity. is higher will
As fundings. expect forgiveness could the far second of potentially the we as PPP of pace round loan exceed loans,
we conditions, loan grow Looking economic expect PPP improving on activity past based first the excluding throughout and quarter, the year. to loans
remain strong the manage in to customers expect carefully average We to deposits as their quarter first continue liquidity.
interest than accretive, a far. to management loan deposit seen be we’ve continued is albeit to and net as lesser far As of degree pricing income, expected so
as which of reduced by will in expected two lift. are repaying balances, billion over of benefits in the excess advances yields a slightly X-week currently by as quarter. provide more These $X.X are securities, offset modest an LIBOR, liquidity days on to fewer the FHLB than some process deploying be period, We lower loan well lower
impacts. the we mostly quarterly mostly fourth move rates maturities be we yields - experienced As loan swap that to offset expect to pressure year, by in and excluding on off growth, from no change assuming there through PPP the securities quarter, we is
seen increase from charge-offs expect low levels to We net we’ve recently.
PPP, However, we our of believe at through at year this credit positioned period end well with over we excluding are manage economic uncertainty. of loans, X% to reserve
We deposit from to and quarter first expect non-interest charges, benefit brokerage higher in fiduciary income the service fees.
we comp it is predict, As difficult will to assume deferred be not repeated.
expect We and in seasonal decline are warrants securities elevated expected decline a syndication Also, activity. trading card, levels. income to from
grow we year, in As improving categories fee progress with general that economic believe conditions. through we should the customer-driven
We expenses be expect to the quarter. in lower first
The the rate to due XXXX. investment decline to run in expense pension new $X decline for is Our to performance get quarter first XXXX. expected million in primarily strong the to is
As in of quarter deferred Partly on two first expenses remain while We in deferred pension higher we lower comp, expected Also, higher all well there $X million our the we returns. lower, seasonally the includes invest taxes. occupancy incentive basis, I days comp as by and future. marketing salary be are offset less stock maintaining a merit do Therefore, year comp quarter. higher mentioned, normal expense not to of and discipline comp mostly associated related expect as and and be spend we and repeat. forecast payroll tech expense full to on to are will offsetting annual this, focused
items. We expect a XX% tax rate, excluding discrete
return levels on we mentioned focused previous the as shareholders. Finally, and maintaining on providing our slide, remain an attractive strong to capital
the I’ll Curt. back call Now, to turn
