Good morning.
Independent company's conference XXXX joining to and for the discuss first you Bank call Corporation's webcast Thank quarter results.
Kessel, Steve Officer; Brad joining Commercial Banking. Vice am President Executive of Chief I Officer; President, me Head is Jim Erickson, and Financial Chief Mack, Executive and and
the Before today's anyone a note cautionary regarding is statements. If call, release my you have to direct press the we the X important Independent the of can for not by begin does copy already it to access information company's it today, responsibility on issued Page forward-looking independentbank.com. website, you at
The remarks agenda followed the then for prepared question-and-answer a will session and include call for by closing today's today remarks. call
all take Board to and all Corporation Before customers, hope simply employees Directors. community our of and and to of a I Bank moment and analysts, remain our times. we you like these begin and To have healthy reviewing you, is patience and our safe during thank hope, of very demonstrated financial that The families perseverance results, them are difficult investors Independent and amazing. that your you our as to I'd
in Michigan. cases to reports as due Human and CDC customers' and positive then, Michigan identified of March the Since Department in help enacted the employees Health keep coronavirus. deaths services environment COVID-XX April two began the X,XXX spread of this of on the prevent to efforts XX,XXX the business continuity Our March XX, On X, first of with Michigan XXXX, XX, our we when to XXXX, safe our U.S. we plan the coronavirus. cases
deaths. and cases XX,XXX reports Ohio XXX While
At On over during days some drive our have March through open slide restricted XX, actions normal our last facilities expanded lobbies hours. appointment-only closed communities. employees, same and presentation capacity. leaving access our to time, call XX X the we the the branch by clients we of business and center to our our of we Page lists that protect taken
and of services, we safety moved Over of the for staff next ensure XX remotely. continuity the working the our staff to our to non-branch days, bank
Our possible. as distributed environment, basically desktop on as be mobile built was was infrastructure to technology so built a it
to As a began to we so, expanded our use customers. phone, nearly than to to as rather and to and continue asking meet capabilities separating disruption from experienced new the employees physical distancing order if social capability in conferencing with home, employees distancing of necessary. to needs audio do very can't call little home we we've really the result, as what of the avoid word COVID-XX. We ways them from employees our in spread as work to XX% collaborate comply video work we'll have social our non-branch our the and of capacity XXX% XX% Presently,
continue We we them that help to to is customers daily. as reality work new this all unfolding our economic closely with navigate
and since meet workforce we by able and ATM redeploy to overall customer high, levels are appointment-only, declined transactions these XX% request our our have moving respectively, our branch XX%, and While requests. lobby to extremely by have been to
with bankers purchases rates. mortgage home capturing as new well record continued in borrowers mortgage volumes cost their significant Our of requests, to assisting have savings as decline process the in
remotely. Nearly our working is staff XXX% mortgage of
with program on PPP customers' digital stimulus center request services staff the and for payment record payments, and information levels are relief. inquiries loan on call Our experiencing calls of
respond level been and down to have customers' our effectively a heavy keep by periods wait calls reasonable to able call throughout volume needs network. our to during times redirecting We branch
third forbearance has week gaining customers residential out solutions to and modifications been and interim with economy during as have business April, customers their XXX our bankers had frozen. community of providing period payment in and mortgage loan Through this we and specific our agreements. lenders commercial provided understanding XXX reaching with the commercial customers, Our proactively situation been
Paycheck to have Michigan approved as the million stay people stay our we where been Treasury's such order addition, we On safe. XXXX-XX life of over funding of Program, order was X/X gatherings stay required Michigan's to initial workforce, April continue the of home and of the and issued In for weekly Protection $XXX out will home. unemployment one Governor the claims period of important of Michigan's to are This Michigan to loans country. some highest provide extended sustain and making limited restrictions order necessary had on and lifted. ordering recently to XX. to customers have in protect The U.S. who March the rate, workers this XX, travel Over Executive Michigan's access before XX all time, ran unemployment with not source programs or to in May aggregated
However, remain we optimistic.
has workers days, than of back. will since hospital will the patients workers on it and difficult likely XX, Yet XX%. when form number reopen and a declined Michigan's and before recent is after by is whole or indicate bring seven governor being to sometime May to all lifted, number restrictions peaking dropped industry therefore, a XX% halted construction the for at employers more ventilator conclusions on Michigan expected are month. has when In permit reports April admissions in of by the It
very quarter first our financial results. with quarter to highlights first on Page XXXX X. Turning pleased our I am
$X.XX million taxes rights pre-provision million quarter value due quarter XXXX. fair share first of in mortgage servicing of decrease a to was XXXX the $X the to diluted $XX.X capitalized price. of first These pretax results include compared in income loan $XX.X in after the or As per million
share $X.XX the of periods, million change quarter pretax the diluted quarter million to price share million or diluted in $XX.X would for of per ago the $X.X XXXX. been MSR pre-provision was first per in quarter. comparative income $X.X first versus quarter versus million Net Excluding $X.XX first year both XXXX impact due or XXXX the of in the of $XX.X the income have in
versus to declined quarter increase million Net $XX,XXX to interest in $X.X compared earning quarter. mortgage first of versus year XXXX average quarter quarter as activity relative significantly Net net QX in XXXX than gains of led QX $XX.X loan the interest first the basis during by $X.X first increased $X.X significantly. and in as respective and the and XXXX from as million also in by to to rates long-term assets net margin million refinance $XXX.X mortgage in year of for in in by ago XXXX quarters the originations more $XXX period X.X% million quarter. XXXX, ago rates, million as when however, fell mortgage the offset point were has The the short-term decline a in decline income last X.XX% loans to compared quarter on the million loan seven totaling was
versus significantly allowance million Lastly, after Act. This for incurred $X.X or as CARES diluted impacting the tax losses our under quarter of methodology per were of defer the is provision adoption calculated in to first we've for allowed under $X.XX the XXXX. quarter CECL share a as loan of the losses existing $XXX,XXX loan related the and provision chosen
million seen we've request due are the increased executive all borrowers. state a Although metrics, businesses the infrastructure, deterioration claims, payment $X.X heightened qualitative credit unemployment to operations our by order significant the especially reserve of increase involved in our we COVID-XX, shock in and and suspending in of that or to relief have the economic necessary sustain critical the from protect Michigan or for in life our not
million. were as compared XXXX the $XX.X growth in The million. loan grew of balance and due was $X.X $XX.X and declined Deposits, portfolio loans fourth or annualized by of quarter offset totaling commercial XXXX. in sheet side, the portfolio $XX.X to decline of million portfolios decline million loan a the first combined excluding mortgage On brokered of our securitization to mortgage million our XX.X% installment a loan loan $XX portfolio our in our quarter during sale mortgage of primarily deposits,
Turning to favorable generally conditions Michigan still X. March Page XXXX. business XX, at were
and Michigan's which heavily with closing sharply, then, statistics, loss on to unemployment key earlier, which, will much reserves. begin weigh as risen have our stated are loan since for of these economy, claims along drivers the of However,
of the the as manage On Page effectively working funds. as overall this while portfolio charts of base of to deposit our couple we in cost our provide X, growth well a composition continued reflecting attractive
During brokered deposits. our excluding XX, quarter deposits XXXX, of from X.X% the grew XXXX, first December $XX.X million or
of total when basis points Our deposits cost points linked-quarter to comparing one basis year decreased on quarter XX down a XX and same basis ago. the is
demand million, while reciprocals interest-bearing Importantly, this time bearing up this across $XX.X million, million for million and $XX.X deposits up account our accounts with fell demand was $XX.X up period. deposit non-interest portfolio growth $XX.X
for held aggregate year-end. we provide an sale, loans billion, flat XX, on essentially $XX.X including Total we're Page now of portfolio. with our million loans Beginning loan to $X.X and with outstanding update
million and XXXX, $XX.X loan flat XX% during of X.X%. has The quarter, quarter securitizations Excluding growth or quarter XXXX remained an XXXX for March XX, the have increased December growth the by total portfolio sales from first loan grew been X.X% commercial of of million at Line $XX.X utilization XX% rate portfolio and to annualized. million, $XX.X annualized at post end. XX, would
XXXX, XX, XX, December pipeline at XXXX. up commercial was to compared Our March
market. rates fallout $XXX.X reflecting be of first Total quarter of on mortgage were XXXX, as million will precautions. million the remains the compared there for had anticipate in have we impact by refinancing originations to economy COVID-XX However, $XXX.X lower the the quarter shuttered the
loans loan positioned a for very and is of XX%. well during with loan-to-value also weighted the average an It's portfolio the balance Consumer mortgage quarter. installment of an FICO $X.X environment The with average average XXX million of COVID-XX $XXX,XXX. by increased granular
this credit are and business. of Michigan loans We lending sourced indirect sports Marine, consumer of with primarily this which the Our dealers. of end target pool upper power business, our through targets RV line line
As in just loan the the is an and such, XXX, has score over portfolio the FICO size average portfolio $XX,XXX. weighted of
million supportive XXX under in our experiencing assisting mortgage April an customers modification update the XX, communities with deferrals loan participation XXX mortgage our agreement. take in XXX loans pride on $X.X with million forbearance of million X.X% Protection financial XX.X% We Through of payment the XXX Page of Paycheck on Program. portfolio; have difficulty. our in loan or installment $XX.X customers actively we've XX, of customers portfolio; portfolio being balances we in loan the and installment forbearance customers retail On commercial and X.X% and a $XXX.X in the and loan or those million side, granted to with balances activities, are our or and or XX-day
are accepted about million We're of total portfolio Protection receiving has on this $XXX the $XXX or for loan we applications XX the customer about been plans SBA $XXX to April XXX Through effective up to with XX. to by requests, an in now Program, X,XXX forbearance retail loan the are X,XXX Paycheck The applications regards manage received SBA SBA are of the had high-volume interest completion have totals approvals in strong. days. and this XX, our we primarily million funding applications. in Through for prior process initial that in With principally total principal have customers up an demand built to number. April million the to X:XX loan or morning,
the in The loans. portfolio on C&I XX%, at construction the portfolio. chart or The X% portfolio. Page manufacturing to aggregate left, right, just billion On charts The type explaining industry by loans. XXX% loan by with both at our is the X%. entire our $X.XX estate we concentrations granular makeup reflects concentrations of real estate percentages commercial collateral chart XX, The of portfolio, real of reflects on including shown segmented the at largest on our are retail very owner-occupied C&I and in the being segmented category, entire commercial commercial these nature, investor
portfolio, CRE largest at the is the Within concentration X%. retail
each review economic team a withstand of next did assessed for to and the of entire Our couple difficulty borrower's portfolio quarters. ability complete the
on credit borrower's teams and to the first, high, the lending portfolio, in between industry Our current risk low. scored environment medium and the
size standards of months in to requiring underlying six more industries Second, higher of general for the analysis sponsor they at to environment appears composed several risk across does shutdown. stringent carry credit with degrees ability quarters. looked up of of relationship withstand our conditions to support strength. terms The are serve three to the of the remainder these well all and the the and indicates economic that relationships well. as strength for indicate of us next varying In and company categories, portfolio to those the underwriting smaller strong for their The liquidity industries many nearly financial every financial company as all guarantors
deferrals foodservices, million and our $XX.X million loans; $XX.X million million $X.X construction, XX% or XX% the deferrals and or identified retail, deferrals X% and we of XX% loans A loans. of as all breakdown million of million PPP loans; deferrals PPP health of million loans; balances, X% leasing, or PPP our estate, $X.X industries, amount $XX.X $X.X million of estate, loans; $XX.X earlier risk manufacturing, PPP X% largest or deferrals for $X.X $XX.X is or follows: where our of of or and deferrals are or and X% million those portfolio PPP only principal or rental and as real accommodation and real million PPP being our million loans; of our have and X% higher X% million of by of $XX.X $XX.X PPP care, our the or deferrals X% approved investor or of and XX% XX% and or of $XX.X our including our of of or
industries exposure are The XX.X% during the this for million or the where the amount of total exposure we received to industries that general, principal those $XXX or deployed the of most the highest industries customers have resources In principal deferrals have million. in total six $XXX.X difficult see is outstanding also we've where risk assist time. those
to loans during available million industries million quarter total about $XX.X the sale $XX.X securities or increased first Investment PPP, XXXX. is these For the XX%. for
our by portfolio quarter end. the or XX% Page an of government. backed of XX the at investments is U.S. overview provides Approximately AAA-rated
quarterly repurchase slightly XX, our anticipate larger XXXX, declared our of quarter the to dividend We In as to the planned range per XX, X.X% levels This of second moving of capital is be XX a end our to strong purchases of $X.XX combined share we March X.X% capital share cash at our with that tangible assets dividend quarter believe February We planned capital back with of and previously paid common our support XXXX. targeted as of levels below currently XXXX. dividend in targeted bottom into April range a the $X.XX the of our equity terms on activity. our on X.X% recently management, first result continuation a of tangible investment continue program. than during TCE
before XXXX, repurchased suspending in we shares buyback uncertain During the of the first environment. quarter the XX, economic response XXX,XXX through March to
our of share outlook for At like turn this I quality, comments few would financials, and to credit to time, a to CECL the over Steve? presentation the on XXXX. balance Steve the
