Thank you, Chuck.
positive the and income during As on impact interest margin a had net quarter. Chuck mentioned, the leases our
interest provided interest over our margin. margin by XX net to compared and $X linked the quarter, and points of leases points. XX% basis income expanded XX million basis to grew The income Our
of During million during the points of recognized margins, compared to second PPP linked a related recognition basis for quarter. fees net the to income $X.X was The basis million the the PPP quarter XX XX of the decline added interest costs linked deferred which points on income quarter, $X.X compared and to we loans, to quarter.
and excluding recent of was margin some interest portfolio. PPP investment to leases decisions Along loans yields, net of yields restructure to able we were compared quarter. flat Our the the to by improved the linked loan with the our our impact grow
interest excess in resulted impact lowest the the our XX have last history. during deposits The the reduced our measures the net we funding addition, quarter, to points. we margin reduced five XX XX which lowest which liquidity by reducing of the which costs balances years, had is also and In our basis we our positive offset had inflated by cash points, points, cost while basis in is in basis these of to was
provided division grew investment controlled. has to costs Compared opportunities our grow significant continue We funding challenging to which improvement, a XX margin rate the monitor while Again, yields look and for points. challenged, our by XXXX, net XX%, were our basis increased interest been in to margins, portion lease were second of our and this and income quarter low the this of interest environment. our
compared was For XXXX interest income the prior first-half up X% net the basis of X year, grew our to points. and margin
XXXX, first the on million and the $X.X months of we XXXX. PPP first-half to compared related six income For to costs million during have of the $X.X fees deferred of recorded loans,
to basis For the the first-half and loan net of PPP by reduced margins, income net months six XXXX, for points first added the of XX basis point. X interest interest margin XXXX
For the of liquidity, interest cash which higher net first impacted margin we the excess XX by six year, basis due months maintained negatively to balances points.
but XX.X% XX.X% was quarter, ratio higher improved second compared year linked quarter, a our still reported efficiency XX.X% to the the For than to in ago.
efficiency an non-core higher costs ratio XX.X% to efficiency second to for recognized first excludes months in six On our our XXXX, which of the of ratio XXXX, costs, quarter. compared compared the and adjusted grew quarter XXXX. our XX.X% Compared improved XX.X% six For driven were for to latest XX.X% efficiency the the by increases basis, XXXX. non-core during months to the first reported ratio to
We we to ratio we costs, efficiency are can the optimistic the XXs during very reduce that non-core low believe excluding XXXX.
we were second the linked quarter. quarter, operating During compared leverage the positive to able generate to
our and of the fee was banking the by we and to income first double to based primarily the X% performance-based commission time, digit At is excluding same grew The trust in which annual insurance to compared the income income, linked recognize and losses, electronic non-interest year. Our compared due quarter. percentages gains investment quarter income the each each quarter. linked decrease declined
also higher electronic Our income due compared was fee based mostly the to income grew quarter income. XXXX, XX% banking trust to and second and of investment
trust XX% XXXX growth XXXX, fee investment increased insurance of grew to months income the For XX% due and income compared in fee basis, to to our electronic income. XXXX. six On based for the revenue, total compared income based income, first year-to-date XX% and of banking to a
year this this metric. acquisitions Our will impact negatively
for grow revenue. look to to which total beneficial our continue are we opportunities based However, to businesses, fee our
for non-interest quarter. million Our expenses of compared grew had $X.X the the X% non-core XXXX. We quarter total to linked second expense of
employee compared of a reflected than more quarter, intangibles to costs benefits Star amortization the Star Salaries also compared the linked the intangible quarter North Our doubled and North associates. with linked grew associated the from insurance to acquisition. quarter the which division and full
related expenses the leasing total for were million, to and Our expenses. quarter second the $X division around exclude the non-core
electronic income, directionally increased banking expense aligned was Our the banking mentioned. already electronic I with
XX% of expense were and expenses first of XXXX. months up our first-half increased quarter compared non-interest total to Our Compared million million to the second and increased second the of non-core compared XXXX, six quarter from XX% the to XXXX. of the $X.X XXXX, $X.X
processing We operating and the data $X remainder leasing also with costs, salaries software and additional had and of of employee expense division. The the million increase associated driven by higher our was benefit new costs.
increase and for as to We our as sales compensation a employee costs costs from increase early the PPP deferred lot loans Also, production, our in were driven and well costs had XXXk medical to we made salaries associates contributing in higher we periods. XXXX impact during the match related compared of to XXXX. increases of to by the were originated. Our prior the benefits the noise expenses in an
to operating flat exclude our our you of non-interest of totaled quarter. the the If relatively associated the the linked North quarter compared million, and during $X.X XXXX, non-core expense total second the impact expenses expenses Division was which with Star
offset higher contributions, quarter and due increased savings, While match compensation XXXk from as associated taxes, see account first and to payroll our decreases reductions an and we by in these higher stock-based compensation incentive sales production our did with higher were health such annual items, increase costs to our employees.
of employee the expenses, expense of non-core of If associated the the $XXX,XXX Finance and you salaries to operating were acquisition, exclude second quarter higher expenses the was quarter and for expenses driven XXXX, North XX%, total which quarter and second compared increased the by operating our with second the Then Premium of also non-interest around employees XXXX. sales increase, and match increase which had XXXX higher XXXk to compensation incentive and production, to $X benefit the The for PPP million. in deferred of costs grew higher in increased higher much from associated costs costs, accounted this originations impact costs. we the with medical insurance Star due our while
the non-core addition, acquisition of a year-to-date the the to North In Star with our cost if second to expense. processing Finance and X%, our partially benefit of compensation expense the same XXXX. quarter you mostly second first the million costs. by data six quarter exclude the employee salaries software which and I compared expenses increased line for non-interest in operating $X.X XXXX, mentioned, Premium compared increases items due operating to the On grew were and $XXX,XXX second expenses the XXXX, lower of higher expenses, associated had basis, quarter then of months as of total We offset stock-based
data increase higher to our related premiums insurance expense some quarters. while We to credits loans costs The due had costs our our our necessary along In and remaining was software in recent calculations. the and expenses recognizing during also PPP that our been summary, higher recognized insurance processing expense. recognized we to controlled early FDIC with XXXX, impacting grow FDIC in business
than Moving we to XX% linked the flat comprised typically the is portfolio to that sheet, XX% our which and balance assets, total higher investment target. was quarter-end, our of XX% to relatively compared slightly
as well Most linked were the balance also exclude the in outflows bearing which deposits as in some Our reduction while checking, we the CD a balances quarter. seasonal higher core which usually governmental of accounts, in market carry first deposits, saw money deposits, from X% from of declined non-interest quarter-end. reductions
XX, at of continued with strive to continue linked consistent XX% do deposits June XXXX, so end total to capital strong at the Our of levels and June. deposits quarter. have comprise We to demand
ratios the were for North somewhat, Star acquisition, any not our While issue impacted by did we they decline equity. did which
However, third acquisition with quarter, and improve anticipated merger we anticipate the once have will capital completion costs. that upon moved the the of our Premier related in the we ratios past
We his maintaining capital, the effectively I opportunities turn well-capitalized Chuck, to our metrics. to to, for while for will look call deploy final comments. back will continue
