Thanks, Chuck.
environment sustained income. deposit decline were we net has to interest not only to during and able X% interest the rate the a favorable our Although, income, quarter net been interest control cost in our
of quarter higher the by Our compared prior compared XX of both basis XXXX to than rate which interest impacted the net impacted and full quarter. and declined basis and acquisition. year the the interest points XX interest by income than was lower SCB quarter the X% year was margin year higher to linked environment the Net prior points X% were
loan XX premiums Compared most points. amortization quarter, portfolio yields points the while declining by driven sustained declined which our investment to basis linked was the basis our of impact X portfolio
we declined to we points due made funding largely rates. during on quarter our decreases cost focused addition, the and which reducing X deposit our was in In basis
future adjust continue to closely anticipate will reductions deposit additional and monitor in having and periods. rates our We
X Given an lower to interest our margin reduction was by the our costs flat. fourth yields in the interest year relatively investment overall adjustment point Compared net improved to impacted were was quarter. swap our by a portfolio loan basis the funding prior reduction quarter, yields, during our and transactions, driven margin while the rate
slightly the year, being full lower by declined yields our improved with margin higher yields. costs investment funding and our offset For loan
taken control entering by measures we have costs swaps overall our to funding cost. have our our monitoring commercial into deposit expense interest and retail increased, closely While
income million points of is margin. the basis for for quarter the amortization year XXXX and $X.X of net expense full million from of fourth to basis Our added which points $X.X XXXX XX margin or accretion acquisitions or XX to
impacted positively higher of recognition by during linked than commercial payoff This of higher-than-normal a fourth net to loan basis of margin the income due in interest quarter Accretion additional points. XXXX income. largely the income the a resulted was quarter which X
full was XXXX. basis the to of accretion which First of more was with of Compared of XXXX, doubled income points XX basis than points related the Most runoff to acquisition acquisition this the date previously increase fairly acquired in year at while margin the to impact discount accretion Prestonsburg loans. to a large from the some had coupled X compared
During in the contraction the income loan yield fourth from the the acquired of to quarter and portfolios year of decline rates. XXXX, due accretion our in interest loan full recent offset some
our losses. of During the and We the for to revenue XX% total income we for XX% prior with XX% pleased gains quarter excluding growth the quarter to and non-interest in net compared linked year were total quarter. increased
losses interest total from grew an and income XXXX. year-to-date gains On to basis, XX% for revenue improvement of excluding a XX% total net
income to help on can income can importance as impact interest to income support net volatility and this our our statement. and rates and metric place interest We stabilize non-interest continue our
total several higher income including benefits during linked grew to which Compared The due quarter, excluding insurance bank-owned XX% recorded to year fourth quarter was from losses was and compared non-interest increase quarter gains income to due life linked X% a the nearly doubled the and XXXX. up death ago. net to the factors of
plan retirement electronic banking activity. following which investments in Also recent both increased Trust and experienced asset that driven declines by banking income is customer demand and the which rates. customer contributing higher increase fees managed to to mortgage grew in due interest the was and growth
the to prior year, experienced Compared significant in we growth many areas.
the the impact include increase Prestonsburg income of the higher and of of which account drivers key service charges of banking growth deposit electronic First acquisition. the both were: Some
new Deposit in XXXX. account the early to fee due service schedules also charges implemented grew
the year investments death and also the mortgage considerable We our in I income a trust increases fees, increase had to and swap bank-owned prior prior mentioned drove quarter. And as the to to benefits ago, insurance related which compared compared banking life we minute policies year. recorded
charges For the largest schedule were were to grew to losses the income First banking during account service the driven excluding full year and account of contributors XXXX deposit The deposit gains the new electronic income compared increase non-interest Prestonsburg and and XXXX. XXXX. by XX% implemented acquisition; fees which
fees demand in following higher the swap tripled customer due while decline of from grew to loan demand mostly than interest mortgage Commercial more half rates latter the banking XXXX. in
assets and XXXX owned income to fees. investment the managed to from to plan higher and income insurance Trust Bank increased life largely compared grew death due previously mentioned the benefits. retirement prior year compared
non-interest of total X% severance fourth the year. linked during compared the prior to the and grew up expense $XXX,XXX Our We X% compared to cost quarter recorded was quarter XXXX. of
the implementation was higher largely fees the due expenses professional professional to CECL to fees new and during Our quarter standard. related of grew legal the substantially and
also expense. level we for electronic FDIC related expense to credits. fund insurance in to deposit smaller of saw in decline banks be insurance threshold quarter above to the linked FDIC the to The and reductions recognize that continued the insurance target banking was Compared
We the cannot a FDIC reasonably recognition on anticipate determined credits of basis. any as quarterly by this future is
Our year cost. driven First annual minimum as prior and was organization, coupled towards the income impacted by expense the acquisition, which employee have merit compared been the movement increases with salaries costs, to higher $XX well the insurance benefit as growth in a throughout higher medical wage Prestonsburg non-interest by
during and Prestonsburg compared well occupancy investments due technology made to depreciation as year Net the with associated to prior expense higher XXXX. grew capital additional mostly quarter, the as First and offset to prior compared the partially and year quarter banking professional -- which data were quarter expense. insurance lower fees processing software where costs the electronic increasing expense, Also by acquisition FDIC
increased grew of for to impacted $X.X as year and expenses, non-interest benefits period. XXXX higher salaries expense For expense. well due and stock-based million total employee Salaries each to costs was compared medical acquisition as which full XXXX, the compensation by totaled
wage For impacted acquisitions both higher Bank Prestonsburg by were the American minimum corporate full First increases. base salaries Savings merit annual year of and XXXX, the and
tax of tax for quarter Our in during from we decrease XXXX income a the our fourth reserve expense as uncertain was positions. a benefit lower the recognized
death related of to during insurance We the XXXX, fourth quarter fund which also received the bank-owned benefits tax-free. were
the to balance Moving on sheet.
total investment XX% compared investment to declined compared comprised flows linked liquidity XX% portfolio end utilized the for XX% the Our linked monthly year-end, to portfolio we as the cash quarter At the of our purposes. XXXX. and at assets at of quarter-end
of was CDs declined quarter-end from exclude linked linked decrease XX% X% December which due in from XX, and quarter-end deposits. increased deposits, to Core the to compared XXXX. the seasonal governmental declines The the majority
due Some of deposits First the core XXXX. December balances higher grew to Compared mainly the market seasonality XX, XX, was XXXX, acquisition. at offset money to with Prestonsburg deposits December associated by
compared ago. was compared grew Our to year -- Quarter the demand and XX% decreases increased the percent deposit total Compared in slightly a deposits partially CDs. quarterly increases to a deposits by interest-bearing declines average the in compared market linked quarter, quarter-end, were the at non-interest-bearing as at quarter average up seasonal prior and XX% to linked were and offset quarter of to compared XX% money deposits brokered to and quarter. accounts to linked year flat
Prestonsburg basis, On the period grew First was a to Most the average acquired related total XX%. growth the to year-to-date year prior deposits. of deposits compared
believe we management in position our We strength capital. as of excess of the capital source continue and our to a regard prudent
over the XXXX fourth during have We during purchased quarter. including shares XX,XXX purchased
increased end quarterly $X.XX XXXX. to of dividend also to by We our compared shareholders the
as our and regulatory continue Our risk-based dividends. our to ratios are exceed capital earnings minimums improve higher than
and our standard. of projections to relates update it the implementation for As I wanted to an status new provide on CECL,
implementation, of significant quarter. finalizing made the our during fourth are our team still we in progress process While the
loans, impact qualitative Our include preliminary current of investment potential factors unfunded deteriorated commitments, securities. and individually estimates now the evaluated credit purchased assets,
projections, X, which in individually $XX And being is loans, qualitative as to time point outstanding million $XX current preliminary our conditions estimate losses, allowance validated, at securities. allowance result a economic upon from loans, result credit million includes this valuated the of of analysis, based and for this that for increase could and our loan investment January for current updated guidance factors implementation losses between which an and in our and XXXX still we and
gross which commitment allowance estimated balances A for credit the for our losses an of purchase deteriorated our to of up the loan for to establishment increase unfunded liability. credit transition loans, and for $X.X increase $X million an overall is million; additional million of between $X $X.X the million
after-tax $X.X an adjustment, which a $X.X loan establish our credit anticipate million. would transition, purchase losses. allowance the balances results we up of ranges, to a between credit the gross This to of effect which these and deteriorated reduction earnings amount would retained cumulative million Given in excludes be for
are reiterate, Just to processes still we other assumptions. refining and
implementation finalization We estimates and determining and internal execution our finalizing validations. our are of on control to of procedures subject are process These working framework. upon impact change of our our
these As we to expenses far the one-third of onetime approximately XXXX. related CECL Approximately $XXX,XXX remaining have for costs as be were two-thirds cost, of incurred incremental and recurring. will
turn now his to call final will Chuck for comments. I the back
