Thank you, Jim.
well excludes in to merger $X.XX Way gains. debt was per Adjusted charges, securities X, share as earnings earnings share quarter Slide ONB in adjusted per was earnings charges, $XXX,XXX GAAP Turning related $XXX,XXX the our and per share $X.XX. million on related $X.X as in
and by was expense a on and our low pre-provision X, XX% pretax notable focus to quarterly This cost recent our Minnesota a increased continued our the full deposit result higher was driven year. adjusted net management. partnership, from scale Moving XX% strong Slide for revenue up base,
leverage basis year-over-year. operating improved points strong XXX also We by
loans. Slide outstanding X, in shows the trend
a with despite billion company's our third loan outstandings referenced, good of As momentum was the million commercial commercial has history. production production. flat the in XXX quarter levels helped Persistently largest pipeline XXXX. prepayments our heading into $X.X quarter high our record consecutive We and of record Jim ended of
As is XX in the Production X.XX% on in lower expect yields the points accretion expected, fourth put quarter down October to cuts fourth long rate quarter. rate environment excluding basis reflects loan yields. September continue portfolio were will term asset and which we the yields and pressure
period-end quarter. the increased to Moving and during Slide both X, deposits average
a Our low total basis quarter-over-quarter points declined points. X deposits basis very to cost to XX
exception deposit little resulted growing our over reduction simultaneously has in fed funds are indexed action. meaningful deposits base. with ability pricing our With costs Fed to of core future deposit strategy a any manage a we $X costs billion are and while the pleased management We response results in book of lower deposit proactive to our price in to that deposit confident in in
Slide our mix shows asset earning loan quarter XX change quarter-over-quarter in mix. fourth and
estate to we Although yield prepayments, focused portfolio and real The by our efforts have somewhat been loans. equal down loans to the basis towards other and of out which the investment points on fourth quarter commercial yields and X.XX% remain impacted purchases. indirect commercial X on more productive portfolio was was remixing loan quarter-over-quarter new
detailed Next our net margin. fourth the corresponding you'll income interest XX, changes on quarter in and Slide see
better interest yields was excluding We quarter. earning anticipated to compared of the by the are expected rate costs. our in reductions with offset accretion The nearly was X.XX% environment. basis points which asset pleased margin our margin challenges performance down Net funding than the decline in last at given X.XX% were of interest XX
cuts. noninterest Fed repricing mitigate strong Active the bearing book that on helped and negative our deposit growth the impact of recent yield asset from deposit rate resulted
balance sheet work disciplined well should defend margin approach ongoing position the and us to allow stubbornly risk thoughtful yield this to our continued to for flat the along rate interest with neutral pricing product against curve. Our a more reposition
XX in Slide noninterest strength income. shows adjusted
result income of the our of noninterest return markets was in record decline fourth quarter a and annual markets The third to seasonal quarter-over-quarter decreased mortgage included and trendline revenue. a $X Our revenue revenue capital performance $X.X that million incentives. to following in strong capital quarter change million vendor banking
Also production. refi continued in Low record included our which mortgage activity the support rates XX% which a strong the summary slide included quarter, of for accounted $XXX activity interest on million is of for production. our a to
shows Next Slide incentive noninterest experience management. We which uptake adjusted growth reflects related ongoing expense trend record compensation driven in production on did earnings the expenses our an adjusted additional year in expenses focus loan full XX, QX by performance. to and our in
we XX.XX% for efficiency despite culture operating discipline and the positive year adjusted committed generating to record is and ratio point a an of Our industry is leverage. headwinds impacting over represents XXXX. our the improvement a revenue basis XXX important part low full Expense remain the
cycle Credit Slide experienced We metrics. million quarter nonperforming XX, our the as remain fell credit we and loans both has in benign $X.X to during new conditions deposit underperforming recorded lows. and what the by provision off quarter credit a charge single closing reserved was prior net been during expense for net while charge-offs fourth in in quarters. driven $X.X fully increase of The had million. migrations
Our to relative lower by practice challenges of higher credit losses early level reflects identifying charge-offs. loans demonstrated our early. as below to active borrowers recognition credit believe peers nonperforming of average ultimately underperforming We of engagement and leads our with credits
XXX basis have adequate strong coverage that and marked sheet, the loan loans, points coverage. reserve basis and acquired against XX, low organic reserve points XX our we loans Slide of with in balance we reserves against demonstrates risk believe
our to to want away credit, Before provide transition we update from with you turn CECL. an we on
modest forecasts, on but in increase relatively unchanged million bottom half increases book. acquired million. the stable, relatively reserves the of the we estimated economic is The portion future assuming remain conditions Our reflects wide establishment of range. to an would in $XX billion expect related of remaining to range allowance macroeconomic A $X.X the of of this be with legacy uncertainty the loans the remained $XX for of increase large to at allowance
Slide key takeaways provides XX fourth from our quarter some performance.
XXX in our continued point XXXX. demonstrates efficiency leverage successfully a pleased record production We are of results X quarters record basis prior showed pipeline basis management. our improvement in defended three improvement a our on against XXX strategic execution and by of remained our into point the margin only activity point operating good and basis scale adjusted from increased heading and driven which consecutive quarter. expense Commercial strong with adjusted year-over-year We our the focus core with loan decline benefits objectives. The ratio
includes XX for and starting outlook fourth quarter points our on Slide thoughts XXXX.
size We expect commercial quality of strong the pipeline. based and our loan production both on to remain
We yield the net some be interest under curve. to of expect core the margin pressure shape from
seasonal to drive the As and leverage. and remain focused positive slide should suggests, continuing we on operating follow expenses very fees normal patterns
full year includes basis tax in an FTE generate and tax approximately amortization flow this is expected an XXXX effective on basis. operating Our expected XX.X% be products GAAP rate credit tax tax expenses. These million on historic anticipated in to credits to the $XX to related The XX.X% an a projects $XX which year. are tax estimated to completed be credit million will through primarily estimated rate
Please include tax model in be effective projects $X million approximately the with The operating of million expenses in XXXX. estimated after in $XX the benefit is along to rate. tax reduced these your
though As through over amortization full the a reminder, is while the the expenses the that with corresponds spread in benefit year recognized date line. placement credit tax the tax is the quarter tax service
to plan. details I additional will to our call strategic now Jim turn ONB over Ryan Way back the some on share
