Thank financial and X morning, of summary X, you, provide Slides X and our first results. everyone. a good Archie, quarter
The highlighted last strong to strong Similar Premium that increasing line costs, was purchase our quarter declined but due margin interest growth quarter, remains at expectations, very was net X.X%. earnings, first interest another in of quarter, Agile solid with the loan solid margin net Finance. by deposit and to
repositioned securities of million the selling of portion securities $XXX a portfolio, which million a we Additionally, at loss. included $X.X
in periods pressure these on will net point in the basis sales changes margin due deposit increase XXX funding a interest We We bolster in periods additional yield. further and contraction pricing coming mix. the expect from in with to reinvestment coming margin the anticipate
the However, Loan pace annualized smaller of to was the we Total an which the our expectations. growth grew decline various expect portfolios. in exceeded other across on loans moderate. basis, commercial real with XX% increases estate concentrated
the balances of February also acquired of finance of million intangible a $X.X deal company We consisting is of premium the in the an million creation in Loan transaction goodwill in balances Agile, list and $XX and all-cash from included at end Agile specializing customer which assets, lending. insurance asset. a of primarily acquired resulted
while mortgage linked increased Management derivatives of foreign the the income once quarters, on loss quarter. client securities, again the the sale levels income in had compared solid Leasing from investment fourth quarter. and exchange, Wealth to Excluding increased and noninterest lower
in decline the an quality Annualized was driven and the provision which points linked asset increased nonaccrual higher of nonperforming $XX.X seasonal X decreased balances, compensation. from which quarter, while with to were classified during loans charge-offs growth. million point net and during variable XX%. loan due from lower We employee period, Overall quarter assets. declining were the recorded charge-offs costs the stable basis by period, net and charge-offs trends with linked expenses increase expense Noninterest net an XX basis was asset
a regulatory internal From of loans. capital coverage ACL standpoint, regulatory excess both remains in Our are total our targets. and X.XX% ratios conservative of at
tangible Adjusted adjusted that our items slightly, our ratio the GAAP investment we increased Slide value Adjusted the quarterly basis believe while performance. was net earnings quarter. X are during consolidation per by of highlighting as FDIC increased earnings losses impact our on securities, of branch to severance the share sales $X.XX period. earnings, understanding important exclude common the reconciles or million points for well $XX.X equity book assessment, income and special costs. acquisition, Tangible the X to as
ratio a As return earnings X.X%, average common a depicted on assets on of efficiency equate XX%. X, equity average these to Slide an return on XX% of and of tangible adjusted
from Slides interest X.X%. to the Turning Net declined and margin quarter XX. basis to linked X XX points
increases in expected, outpaced primarily due by As to costs. yields funding the in period. increase asset were modest cost increase funding point costs yields XX a a during asset offset higher These partially basis we in
but of in XX continue increased months, the to cost coming pace costs saw to compared a Our quarter. than points to basis the deposits these first we in increase expect slower quarter linked we at and the
the details income utilized increased our XX costs quarter, net our Deposit in moving to X first betas modeling. interest current XX%. the in percentage up Slide points beta
modeling sources outlines capacity. XX%. is XX% borrowing to liquidity that various of approximately Our our beta and our Slide XX indicates through-the-cycle
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growth with concentrated growth balances almost mentioned before, portfolio. in XX% loan moderate every basis an on annualized I in and increased ICRE As other
provide Additionally, from X% About remains quarter, acquisition detail our growth $XXX strong. the the and during is portfolio X protection portfolio. on this sufficiently loan relationships and to provides We contributed to concentration for our of loan portfolio the office particular downgraded on of office Slide to detail deterioration were Slide industry. million. of our million diversified metrics total are nonaccrual the by portfolio quarter. overall provides $XX declined in during office loan book space Agile concentrated our our total any industry. in nonaccrual performance believe balance No XX
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right of event our borrowing bottom of equates that larger deposits capacity deposit We slide, the to remain deposits. and adjusted this to would respond comfortable total On our provides can concentration were XX% our sufficient balances. with billion. see $X.X flexibility our any uninsured believe to the stress This you
during million income variable loss quarter as This employee strong, fourth by period. mortgage raises investment increase fee is was I Wealth and for derivative during income increase for included driven $X.X Core payroll noninterest our income previously which quarter was levels. at highlights to costs, expense and the in and XX annual that from remained tied and a on first Slide relatively income includes income exchange million the on higher outlined Total $XX.X seasonal increased the fee compensation unchanged business client foreign leasing quarter. Noninterest expenses increased all an management well the XX. taxes. in quarter the portfolio mentioned. while Slide the as
XX Slides to now Turning and XX.
million Provision XX basis, which basis and includes $XX.X basis which both in an ACL by and quarter. Our was unchanged of and million from quarter. expense $XX.X from the Net reserves the total X growth. a ACL was charge-offs point an net expense were $XXX million that during resulted total resulted points charge-offs the period. allowance, linked driven funded or model of provision of X.XX% which fourth was total an on in This loans, was decline unfunded loan annualized
during primarily of to of increased downgrade nonaccrual points Another basis while the total the classified credit XX% assets to X relationships. asset loans trends, decreased XX period, balances due
we build model as ACL anticipate or unchanged, to our the changes will have was flat, losses believe we we coverage ACL We to a portfolio. our in future continue conservatively from remain to that and reserve in responds the slightly expect environment. relatively macroeconomic our coverage reflects increased modeled Our periods
and Finally, Slides internal Regulatory XX, XX capital as minimums excess ratios and XX. shown on in of targets. regulatory remain
ratio Absentee remain to would book TCE the the increased due excess targets, XX unrealized demonstrates ratio the in basis TCE tangible capital Slide to from that losses value quarter, would AOCI, reported. and first X.XX% slightly the increased our earnings. X.XX% X have During regulatory compared portfolio. in of our been as ratios the including strong impact points securities
Our XX% our not do and returned an anticipate return shareholders through common remains during to attractive dividend total dividend. our near-term our of any We earnings the shareholders the our provides believe period robust to shareholder with return changes.
capital continue various we However, year progresses. actions to will the evaluate as
for some Archie? on Archie to I'll over turn comments our now it back outlook.
