Thank you, Chris.
level and cover I will driven over private the in diluted and quarter fourth by results, results provisioning. more imposed of the macro in of and and EPS X.X% reflect timing decreases XXXX, the now pressure income respectively, of the in net margin rate of net charge-off XX $X primarily quarter from by interest fourth $XX.X GAAP environment quarters X.X% recovery activity million detail. related
their deleveraged XX.X% the the addition, and respectively, decreases income fourth excluding as of to and and compared be In merger quarter, respectively, quarter diluted deemed as When third quarter gain X.X% results. of expenses to results the a non-core, acquisition included and XXXX when compared well fourth associated items reflect to for tax X% X%, and impacts. related EPS increases sale quarter net loans, prior and residential the the results when of reflect with
that key over the a areas the business consistent in Despite in number detail. and across of earnings, with quarter quarter expectations in line decrease more cover I momentum were results strong, reflect will
value X.XX% an $X.XX share average $XX.XX In addition, the cents. book additional quarter, in anchored December value fourth XXXX of to tangible XX, return quarter book bringing tangible in increase assets on the the per of
over full Blue absorbed of the value this represents cost save a Hills share Inclusive yearend impact XX% tangible the the prior year level. of and per in XXXX, book acquisition initiatives increase
average equity for on a with quarter. common return addition, In healthy tangible XX.XX% the
in Included and activity down loans fourth was Included loans QX being balances the the fourth for acquired $XX to commercial approximately portfolio. million outstanding in reflect quarter payoffs results, Hills strong Blue by as residential in XXX the and total Blue and the another slightly associated million accelerated the closing payoff with pay pay Hills decreased in downs. loan offset continued activity the net quarter,
Similar continue event to borrowers to payoff the in commercial book of the in as activity real advantage majority opportunities. occurring portfolio is portfolios, conditions and of the or industrial take to commercial exit estate quarters, refinance favorable and commercial pursue
investment, Countering the payoff a as portfolios, as activity the estate category. strong and X% in real commercial the northeast loan volumes strong reflected economy resulting as to balances, in these increase in construction continues business in solid well closing decline spur the
XXXX. bodes which the of addition, continued December strong closing approved as commercial In heading was $XXX volumes into XXXX, pipeline well for million XX,
the secondary overall being balances. the the side, that primarily in estate strong rates robust company's fact continues is results mortgage in market, majority resulting real the income and consumer the residential the to to loan decrease On offsetting banking the of mortgage reduction reflect balances sold
last a growth. over balance And causing temporary demand mortgage quarter, equity strain continued noted to out the curve refinance opportunities, favor yield cash as and shape home
sheet Hills similar, customer sources offset outflow, deposit by sales subsiding being deposit of run municipal the Blue On healthy various deposits, deposit checking well higher are notable and off narrative side, as deposits. cash the a commercial volatility including costs is and of but flow, balance as as core new bank
maturities has the use of replace points, decrease stabilized to the a overall deposits cost broker point of X-basis CD remix with The reflecting and the of prior products quarter. quarter costing deposits fourth higher deposit XX basis cost of from
to borrowing reflected well the retirement as the and subordinated wholesale fourth the of as cost. of funding addition balances, full overall favorite improving also further quarter debentures, In million quarter $XX Company's deposit minimal remix, a the
X.XX% loans full rate the cuts, cut Federal interest income such, October, for fourth September and of as end cut the rate line impact it accretion decline fourth in remains offsetting well and in it July was quarter the $X.X compression. as approximately for margin is quarter and also at level, of quiet inclusive Loan the As an the a quarter. million was an the to the expectations Reserve with elevated the from at net additional both for
attributable Fourth gears quarter. sale X.X% an million when in from non-interest million the deleverage increase was residential quarter, prior gain Shifting represents income quarter a items. the to the excluding operating non-interest to $XX.X $X and third
of administration account new the a income, million generation, billion another temporary assets outflow Key under asset management XX, items quarter the we large by $XXX strong to as following: was quarter December overall custody mitigated investment include that XXXX. $X.X noted of for increasing the to last highlight Regarding quarter the of
increased revenues in along when drove commissions compared shift increases holdings the with third to overall retail asset quarter. in The fee
both both as strong against banking natural elevated derivative remain exceptional in mortgage from longer-term rates. for quarter While income hedge down demand income a third levels, level loan and reflect declines
down compared $X.X included due to in were income recognition bit metrics. million other recovery lastly, fee insurance And to the of update asset Interchange of a detail speak I to the prior category, ATM which and more my as quarter part seasonality. is a quality will on in
slightly million when quarter Total prior the XX.X third non-interest fourth expense the excluding approximately expenses merger XXXX, for quarter elevated related of in level from of quarter. of represents the a $XXX,XXX
stabilized, key credit related and FDIC incentive of Some million correspond the the assessment due assessments, against fund offset credits stays benefits include items expense quarter's in timing utilization, each decreased salaries quarter in to primarily highlight quarter, reserve for level to be due the levels. the to quarter to accruals FDIC $X.X And to additional the third assuming similar that with was earnings quarterly to an future available zero fourth the
alluded optimizing incremental expansion. his is risk credit spending while initiative the prudently in new efficiency, the in administration, market well earlier This as management, overall to continues areas building Company technology on of primarily includes invest and costs prioritization to comments, as scale focused as infrastructure. associated risk And with on and strategic Chris its in
fourth quarter efficiency. associated and of Along infrastructure as exits results increases consulting costs one-time well to lease as in the XXX,XXX build scale those while and lines, maintaining were included with technology in restructures, further
the efficiency ratio the remained level XX.X%. spending, low quarter the at increased Despite fourth modest for of
particular, items Similar on quarter one-off remain a relationships to metrics except quality this fourth million experienced to events, prior previously exit a the claim on charge-off In prior offsetting commercial loan. acquired net $X.X Blue with couple of a acquired strong of scale, experience acquisitions, the estate despite results. a income Hills loan was by the during with charge-off quarter. an real million larger resulting insurance couple payout alluded Asset offset in $X.X associated non-recurring
recovery business Because non-interest the combination, Company's is of loss, in the events is reflected in income. in included timeline provision the charge-off insurance purchase and account of whereas in impact for implications, loan increase the
they events, non-performing general million, total isolated portfolio, with be as within at only approximately assets to not $XX.X of considered characteristics consistent are quarter remain are indicative other deemed items assets. X% point any these the of As prior the or to be credit
$X the the million growth, come of organic coverage with over The well provision for of that for allocation. allocation as for provides general loan loss zero run-off large essentially as acquired loan charge-off, replacing balances reserve
arrival is validation associated the its long-awaited model finalizing into implementation is the and complete with of And controls. Company its heading with out and model processes build of XXXX, and documentation CECL
we such, to As specific this it point. at feel disclose result is premature a
However, indicating to on impact be we one reserve that expected are comfortable the day immaterial. is the
rate filing fourth which XX.X%, quarter the the Lastly, of revised for reflects state tax to tax a benefit declined the position.
year-to-date as the well resulted XXXX discrete Company expense in rate. additional the a lower benefit $XXX,XXX effective to in for quarter, newly the the recorded tax benefit returns such, tax tax filed adjusting fourth as determined tax As amended which previously
the this expense, quarter. also other $XXX,XXX in the approximate which In consulting of incurred contributed position, increase conjunction expenses with to Company noted amended this
gears now guidance. XXXX switch provide full I'll to year
Assuming is no be expected significant the to digit changes loan and competitive the single to economic low range. in growth landscape, current net
both activity in in the be loan insight, challenge acquired the loan strong as bit to range. well expected outside closing net for growth increase Hills XXXX, current recent in could from impacted of a more results volatility rate this will likely provide to new while or are as Changes the environment. remain the To by into off either growth pay commitments portfolio, assumption continue result Blue
guidance, growth also single-digit the is low to growth net loan expected deposit in with be Consistent range.
with improve is slightly balances from to deposits of year. an deposits a of the static and and mature the deposits, expected the over rate to expectation environment cost Assuming continuing shift upcoming time course core of to overall
from in margin, range, interest XXXX be approximately anticipate levels year net the total we which margin points. full mid-to-high represents XX the to XXX to the decline Regarding basis of XXXX a XX
portfolio changes guidance from slightly, level stabilizing $X.X to accretion a yield following This from reserve, level with to No overall costs compression the funding quarter. turnover, assumptions: the of of million and improve includes loan loan $X XXXX of million interest some to per nominal Fed normalized resulting rates
to on Operating other XXXX adjusted income with recognized fee remain essentially sales. should million the recovery baseline and compared large results, flat one-time in insurance XXXX $X excluding for as gains asset number that aforementioned
an from weighing year. Amendment of One factors $X.X reduction Durbin the million million over assumed to income the on six of is revenue of in last the interchange $X months the
are Operating expenses, despite mid-single infrastructure excluding to increase year-over-year contained market capabilities, internal merger low related and range, new to the other investment non-core digital expenses be expansion. incurred digit in in and in anticipated XXXX, with well continued
at long-term net be and over bad not do experienced should this the by materially any reserve which of to point. from for provisioning concern change driven known primarily under the horizon levels, on Similar conditions, not debt significant the impact CECL both model will and previous economic general pose charge the in off credit
expiration And increase approximately is level benefit tax to for market benefit, some the to equity credit rate lastly, compensation quarter expected discrete with vesting year the first due new of with awards. to the the XXXX tax of in XX% of final
That my comments. concludes Chris?
