with Slide X. Chuck. your results, quarter everyone. Thanks, third Good morning, start attention Directing let’s to
share quarter per $X.XX basis, $X.XX on second X% up from $XX.XX, which quarter. per charges to and excludes branch share For the and was share increase in book GAAP annualized. basis, compared was a $X.XX adjusted the Tangible to on earnings per M&A last consolidation third isolated quarter XX% an earnings value
points from on acquired of basis Lower Excluding basis X.XX% points to only interest points net X.XX% basis contracted accretion positive variable basis of quarter. our cost with this of impact last quarter purchase XX impact a points quarter PPP loans, the XX of had and from X a decline last on quarter. margin, margin deposit to this X discount
is branches not market team’s the our to to business million mortgage at declined $XXX quarter. this higher due also million. $X.X of results, increase record last volume leads simultaneous in an growth September XX% with inbound service revenue deferred quarter but due wealth Our another with over return to to of Freedom August, in in keep to a $X legacy our expense to XX and conditions, generated Further to banking through quarter ability levels expected build October, St. this million branch, will mortgage supported on acquisition revenue due management which is with analytics have payments from The only Loans $X.X two omni-channel continues Petersburg proportion billion reported and our we which $XXX AUM digital we specialists consolidated branch This with team with reduction expect high, annual just consolidation high payments ongoing represented St. $X.X million to total volume. of and marketing tools XXXX. the in Bank an a and million. XX% result in contractual Petersburg, from added increasingly
fees recognition for the the in income This the through million August, PPP early for sequentially. decreased net origination Turning duration PPP million from to from the of we timing direct of program interest fees. of relevant in of SBA X. was result $X.X Slide $XX.X the Net costs. April earned origination change
based to million expect entire we total of processed $XX.X be the pace. and the that quarter, start applications recognize rapid our at million second quarter, forgiveness overtime. In recognized a that We as third and would in $X submitted the expectation loans these are on would forgiven the
PPP the forgiveness. what However, period in SBA scheduled certainty full the about the quarter recognition only in quarter. feel of with applications contractual timing forgiveness the this October third to loans only in extended fees early our We’ve we began and recognized XXX,XXX less is processing and
to margin and The third on of margin points investments events into X if expect X from early no basis well resets decreased PPP quarter affected quarter. by six partially the from basis and total decreased interest mix, offset on XX cost yield, may the actual This and purchase third by decrease points purchase an utilization to as basis X on XX quarter. points, in points We of in in reduction including to points lower faster some each basis from the bearing excluding second deposits The quarter. lower the cost basis The X.XX% from acquired of results product of interest refinancing. by of reflects this loan net accretion discounts in excess additional PPP compared of accretion forgiveness on purchase basis basis the and rate liquidity. quarter, increase demand in excess securities pay quarter prepayments, the timing. decreased X.XX%. The securities XX quarter. variability points the downs XXXX, basis million forgiveness XX to loans points was recognize only of early basis third occurs in yield on a create and an was higher net securities second deposits deposits. and of accretion proportion PPP interest to margin as discounts discount of the loans non-interest loans yield deposit $X.X basis X the quarters decreased excluding although of in That liquidity The XX of of effect in net favorable of effect next points compared to reflecting in second XX increase Quarter-over-quarter, a points points
the expect in deposits to quarters. continue of We the decline coming to cost
X. categories. on adjusted increase was year gains from Moving quarter, XX% prior income key On $X.X excludes an security an income $X.X again which of an to and the or Slide million report the from non-interest million of or this we’re non-interest in previous record quarter, levels to $XX.X quarter. of realized pleased basis, increase sales, XX% million,
third market, increasing in continues the XX% $X.X and capitalize revenues business to in strength on the a to residential quarter. banking mortgage vibrant million Our refinance housing market Florida with
we of risk. with majority use As locks interest a eliminate market large that the rate rate sell at in we the of investors application to residential reminder, originate the to exposure secondary and mortgages time
our this This marketing our analytics quarter, in XX% been the and of approach of quarter-end area. quarter contributor, is and mortgage XX% we tremendous tools, third pipeline. substantial channel mortgage omni-channel were of by success the has a team generating to and growth The digital generate able production supported based
$X third marketing million. management, our on with recent in quarter in resulting in from team, notable million focused spend a The new $X.X behavior. card under increases with revenue assets was total and utilization growth additions AUM also Interchange $XXX to $XX revenue business to million, customers business wealth million of quarter bringing record management XX% driving in for increased and our
the the in Slide Adjusted call, quarter’s Back prior-year from related quarter, the of quarter $X.X costs, in variance to to PPP compared quarter quarter. the higher driven nearly which expense million, on discussed increase million we higher million totaled Moving of XXXX. to in non-interest On by production expenses resulted PPP $X.X by quarter second adjusted second program quarter-over-quarter. million loan by million as an loans of the $XXX million, and deferrals driving X. salaries lowered $X.X last earnings $X second basis, originated salary prior increased an of an compared benefits and $XX.X and increase the
and higher in than our with expect associated medical the related quarter, lending were to from This mortgage medical postponed these last the coming primarily higher than strong provision expenses insurance guided unused processing banking, we repeat losses by with to the expenses our quarter, performance including costs third higher due commitments unfunded nature from expected the expenses, is by claims resulted with the was $X.X for quarter higher higher on COVID-XX production, in expenses. the executive reserve likely self-funded in approximately continue expenses credit and of quarters’ associated therefore Outside of performance for base mortgage in expense, the increase and routine not outsized recruiting Other were Much track lockdowns. better FDIC of million, having Bank. production. appointments the higher been cost an we commitments, variable third in quarter. call in with for do resulting commitments fees Overall, higher also higher a quarter to mortgage in expect from to acquired $X.X million health in which assessment associated business our range Freedom revenue second program revenue results mortgage
the As guiding to $XX lower range expense a such, of non-interest an to $XX adjusted we’re basis, million on million amortization of excluding assets. intangible
discussed of expenses will Slide we to slide, That past the third ratio from accretion as in commitment to PPP timing non-interest our increase we’ve to management the PPP and partially increased disciplined forgiveness over to X. demonstrated expect efficiency discipline decline the we and as the quarter XX.X%. Notwithstanding results The quarter the income. the to years the ratio cost adjusted on we in issue efficiency higher prior offset process, our fourth we by unpredictable continue apply ahead. several Moving structure. higher efficiency that look continue proactive, fee
and this addition portfolio Turning portfolio outstanding customers. lower production to and to XX. demand $X.X quarter, slide from reflecting organic in million Freedom loans increased $XXX from billion, million of by the runoff offset Bank $XXX business
at continue posture In the environment, the new commercial, pipeline take origination. $XXX conservative loan Given million. end to was pandemic we period a to
that up after million. basis The and of volume in risk rate the associated to pipeline. promptly on now quarter significant strong discipline market levels of significant benefited our to lines sold million efforts category, to refinance continue thereby purchase reflecting continued support relationships though secondary interest $XX first strong $XXX has established prior best home from no A on quarter, stress. with the with markets is options. of consumer only have mortgage maintain credit equity the to culture, We $XX incurring high pipeline XX% have the mortgage majority million activity. our as last market from our sheets pipelines fell can for residential favor lower in consumers from refinancing balance residential focusing demand The the increase, origination, remained a
the continue result given to Looking carefully modestly outstanding a forward of loans posture expect managed to to environment. we as our the disciplined pandemic fourth be lower quarter,
PPP Additionally, accelerated expect to process continue we forgiveness declining as balances begins. the at rate an
XX. manage credit our further exposures vigilant and our slide continue intend we to position capital to credit prudently. highlighting to culture, robust Turning
entering confident environment established serve will well. us this conservative that We’re posture our
The stabilized is estate owner XX% outstanding, the XX% XX% our average have in by the real represents asset loan secured commercial portfolio portfolio. XX% commercial real XX%. lower loans of occupied distributed is broadly and value. by investments estate with borrowers commercial real of comprises classes. of Our equity across various to represents producing residential Approximately, and secured is income commercial LTV real that estate of meaningful estate portfolio real their portfolio the portfolio, estate of
levels keep portfolio and land development in for capital and and to below real at XX, September risk-based of guidance. are respectively. Fortunately, loans decline XX% group. estate years, our to loans, XXX% continued represented managed lower peer our have that Those have regulatory we construction most and well than commercial
distributed loan XXX,XXX. commercial Our average portfolio and of PPP loan an is broadly categories with size excluding across diverse
later deferred quarter-end loans in Turning deferrals What detail the we’ll payment deferred $XXX at September of largely, presented hit on estate our commercial when XX. of real XX we and pandemic payment payment those to the moving slide. the in to majority in October. as slide of and contractual and original return deferral first, to is expiring But large on loans and XX short-term six-month for graph, status. program. look the remains in month of status payments slide in loans the million with is see our deferral are deferrals of started customers the due loans those the April October. a at on with to supported expire a making are at that on in September XX majority
that As deferral that XX% in identified or the with the payment making a were loans which of we Of over over those third XX% contractual in in deferrals had experience and loans helpful off came left month, deferrals to in last Friday, have the put consider earlier quarter, on with returned payments XX% the the the loan quarter, is have on already of right. week October expirations. expiring balance, It��s deferral received the third in September. to our paid had of year the expired on off payments,
X% loans and past October were in the with payment due due first or accommodation. quarter their in remaining offered the third X% So, additional of is XX expiring days deferrals
remain deferral period balances they So, at end. our in
September our and have or total loans, to total X.X% or at XX. million, XX% approximately loans down at were from non-PPP October that deferral of XX $XXX data We million down through on date; $XXX available
declined deferrals have the six will end year. this are accommodations by expect have months additional meaningfully been rare. the beyond of extending We
well those in payment to a in largest these The positions only industries our and of Turning have of portfolios as a in us September remainder as CRE and an slide office office presented average is deferral XX% office slide from believe we investment accounting, million. and been CRE average our have portfolio professional dropped Diversification deferral The in construction XX which on buildings, the exposure size represents producing types were occupied classified office other $XXX,XXX. the is care, portfolio look professionals. of construction for owner income portfolio. as owner on of occupied, deferral the of XX% on through quarter. is XX, the portfolio million more our critical of our CRE, in portfolios, primarily XX%. medical, loan this is of The environment. The $XX status at detailed deferrals last properties loans and category across strategy, including type which to independent collateral the is XX% LTV categories. aggregated down including this tenant last stabilized XX% loans engineering, health $XXX buildings from comprised Friday, like practices, update only and on
largest second on retail of and we’ll from multi-bay of last were these expected centers, shutdown provided typically status, deferred return with payment an estate, six-month total are to XX% XX% began. segment deferral the be when in representing status October. Our payment period These many X% loans, with only real is so, shopping to down initial quarter.
October loans portfolio entertainment on average is outlet Friday, portfolio theaters, or our regional is The average have category does on million. from loan the include this not the only of progress malls, movie $XX last presented venues. as deferral million retail in complexes, in the LTV declined we slide As $XXX $X.X size through The to XX%. and million mall
some low industries. seriously-affected the Our exposure is most of in
hotel loan performed Today, and portfolios only hotel than million. to outset $XXX expected XX%. of portfolios the at are with restaurants average of have better an estate primarily is the we real portfolio pandemic. are with value both restaurant Our million secured $XX The and
exposure major of Our and are The hotel beach is our there no and or well-diversified. benefitted have weekend from the arteries, interstate both side is travel exposure majority restrictions. which of along occupancy
theme little We in locations have park facilities. and or a do center finance exposure conference resort not
across The financial financial slide worth this vessels commercial earlier and for only total on loans, marine more remain look deferrals and remainder above September with XX% for X% this is year industries loans had spread net a X% of and our no and payment The concentration in a and companies, detailed X%. loans. modest largest segment to in individuals holding commercial deferral at aircraft represents XX of XX. high by Turning the of is multiple at owned exposure
XX over slides an with to are Turning and by X.XX% rates average of decline faster investing down a net mortgage-backed a in in of three this yield XX will four-year little grade securities, MBS the and primarily down X.X duration and for risk made we’re years. a additional at an securities portfolio. quarter carefully XX bonds basis have points. gain We the average of is agency to yields purchases add-on pre-payments unrealized in $XX.X on Overall, portfolio the curve million. period. that of and a extension roll position
to by this it we $XXX deposits. and XX brokered X increased XX cost to represent basis is from of or Bank, XX% of deposits quarter. total the X% slides million points, The two XX. lower further million accounts the deposits Freedom Turning Transaction addition change of by outstanding basis in fourth offset sequentially. deposits The balances. and partially expect includes $XXX quarter in drop lowered points
XX% that remain proceeds of those shows funds loan approximately in Our bank. analysis the of PPP
allowance Turning chart. we losses present the in in XX. credit changes to the slide the for
allowance PPP. June ended that increase at We of Bank the addition other from XX slight at quarter from quarter, of by balances. a and September in the with the excluding the offset impact Freedom X.XX% XX, was declines in to During coverage X.XX% the increased loans loan
you On for income provisioning the the the totaled items, impact credit can see related statement on which than right, during $XXX,XXX. the of quarter less
credit of the cycle. expectation prudent some XX. which the lifetime what loans million CECL slide that an to we of unfunded the $XX.X have separate also level into adjustment will life Moving includes we in our feel losses, credit is our that note, of that commitments Note estimate our through discount million. losses as of to be allowance. will to loss under a loans earned a reserve purchase those in reflects under have $X Also yield. migrate obligations expected allowance addition over for of loan
the quarter. Turning of Freedom quality. closing trends XX by in the during to influenced slide on part the asset Bank were that acquisition the Note
our confident We’re that transaction reflects the expected adequately portfolio. mark credit performance the with this associated of
charge-offs loans. acquisition were in of The increase net portfolio in million criticized of early total quarter. million The $X.X from in category, loans, specifics, quarter were quarter loans the changes $X of $XX The X.XX% to $X of including risk-based and now which special $XX.X prior million totaling at level additions $X.X XX September primarily and XX. Turning non-performing came capital represents million paid include one million borrower that from XX% this for at by increase increased Bank of a this is $X.X to flat million the from Freedom total off loans October. mentioned loans million.
the an of taking coverage to moving by are prior decline environment to added majority up the loans, XX conservative the partially in quarter quarter. exposure. $XX grading offset given for appropriately PPP the September loans and credit special prior increasing loans from Freedom from allowance is total hotel remainder X.XX%, is the losses our pandemic overall with in into The approach at the our from X.XX% in million balances of from of Bank, slightly loans allowance excluding mention portfolio. We’re
We the outlook. continue economic view cautious to have a of
to the So, SX where moderate our over might downturn period. could weight a more more unfavorable and of be extended Moody’s allowance estimate the characteristics gives be the recession sustained scenario, significant
asset that per to X% and book tangible is fortress for to The value quarter. us prior of adjusted share has flat to on XX. increase positioned achieved XX%, slide tangible an share longstanding XXXX, prior common commitment maintaining book serve reflecting confident Since per equity of your position operating an sheet and capital on driving the be the our of progresses. rate balance our we’re to shareholder tangible To a model turn continues Turning Chuck $XX.XX, tangible our to our slide the as capital over compared ratio established advantage in over XX. seacoast ratio equity they ranked posture We and strong ratio basis increasing compounded the was equity, I’ll Tier opportunities the X was end will well XX, at each on amongst quarter. and to value was September conservative acquisition. us as risk-based of ratio over ultimately in XX.X% well annual common to The wrap XX.X% arise. efficient at the freedom quarter is total value highest up, the take the was recovery on positioned back to measuring group. capital a we’ve quarter, call return In prior has XX.X% questions. tangible peer look the resilience. impact creation. growth and Denny. forward
