first our to Welcome quarter Thanks. call. earnings
today as Officer; Chief are Chief Credit Officer. Hankerd, Financial Niles, and John our our me Joining Chris usual
a quarter our slide business signed with were million We verticals. specialty to creases contributed a growth in trends. growth most improving to first X% lending by earnings and $X lending basis. increase our three, driven expense $X.XX per interest along over of of our had general year-over-year growing commercial on commercial Turning in share business across income and This loan net
from our and more are million the also for available. We specialty XX% stock power up authorization of the the details which slide flows our the than the increase deposit the commercial Our of up of Total in non-interest year-over-year. typical prior ‘XX expenses and loan to business saw X% on our decreased surcharge. growth in $XX over four. growth general utilities. led million Loan verticals first leaving was to quarter, increased we quarter $XXX quarter by gains in was we part from lending and balances in The X% from experienced in common repurchased quarter on quarter, due & business and elimination in prior shown particularly from current last quarter the X% lending, FDIC due to fourth commercial our seasonal
Our pipeline C&I solid expect remains through remainder we to of loan increase year. and the the balances
commercial estate quarter real our due activity. declined pay-down anticipated, the elevated As to in loans continued
of commitments. and portfolio However, $XXX billion over we show have XXXX. believe and positive we'll point we begin begin the year our commitments construction million of funding the lending this half expect that we will nearing are we that unused growth over remainder of fund to inflection the as second in $X the expect currently those in We
this by Growth in refinance portfolio Our in residential slightly quarter. generally first housing was mortgage volume has sales the been restrained and in modest activity. the weak up business industry
slide five, average fourth $XXX quarter. million to from Turning up deposits were the
usual the continue Our the by saw and deposit quarter outflows on our interest loan the customers as growth outflows government managed third our to from as quarter. seasonal in DD from municipal received our bearing deposit deposits. first shifted funded draw funding we they increasing mix they slightly our We
in non-interest and customers from bearing reduced commercial as quarter. occurs saw we balances Additionally consumers often first the
as the our the track. network these year-over-year first alternative on On remains expensive shown network We network deposit in chart. of downward outflows of upper increase deposits balances Despite in nearly sources by index less such a these quarter, basis reduce decreased mix deposit quarter our the continuing this return advances. FHLB than $XXX coming transaction We expect long million balances to strategy will were from offset XXXX, right trend the term deposits, our these funding months. which in as part increasing temporally
million $XXX to approximately receive in to the expect reduce our June, further benefit deposits of efforts deposits. branch we in which network core announced, transaction will Huntington As
was the deposit the time loan typically XX% at of quarter, at we ratio at end the to of the of year. experience this Our the low range end
discussed the net slide to the acquisition increased to income previous we Net interest accretion. prepayment of of income. from six, quarter which million $X first quarter down levels interest lower our Turning related was due XXXX from and
the our bar left, year. the interest trend been acquisition income driven to day million first graph compared quarter effects. over the We accretion at higher net, a these the in in and the over for first core previous interest in previous volume. had related a XXXX, year, quarter, a from year-over-year income Looking $X action. net the net any reduction $XX but our on interest expect excluding loan has accretion Removing million. noise quarter positive last depicts basis quarter, the core real on real will by dark shown Lower prepayments the income levels income These XXXX of estate prepayments, green commercial estate effects, of the yields in increase count core fed the interest current significant and On net right. net increased last the near portfolio created have remainder rate remain graph commercial factors the our yields in borrowing that portfolio yield the growth, we is which
slowed seen shift, liabilities the deposit mix cost this of driven with increase compared XXXX. While in our quarter part increase the interest-bearing via slightly total rate in increases
liabilities factors. will mitigated forward we upward costs that by pressure be on several Going expect
the our rate should fed expect has funding. cost regarding changed XXXX. increases fed now based be tone the there and First, that we will its index This additional in of no meaningfully stabilize action
in that and higher core inflows reduce us Huntington the June increase seasonal from deposit funding. in to transaction will quarter, third the enabling balances deposit from cost expect we Second,
growth for enable to we having loan-to-deposit our Third, to pay loan low relatively up without anticipate ratio will fund funding. anticipated us
for and the our trend loan upward remainder costs, funding court on our net expect continue the pressure reduced anticipate will income year. of Given upward its we interest growth that
quarter and to XX we the count seven, our interest to bar Turning core day the accretion net effects. impacts accretion quarter-to-quarter lower first prepayments also detailed previous and graph We've of LIBOR spread. impacts funds side the of by fed slide negatively on count the show and compared margin accretion. the the the impacted basis The dark and margin left our day shows in without margin seven green prepayments of slide quarter. points Prepayments
of walk two right fourth effects year-over-year. margin the ‘XX shows those we Excluding between slide X quarter of basis grew down seven side and our over last the points core and the quarters a third The by of quarter graph. ‘XX fed of and quarter of broken the the ‘XX top ‘XX first fourth negative also impact compressed and the LIBOR between spread. out quarter the of bottom funds the on the We’ve graph on
margins can in of composition and our see, you the on impact funding As positive two a quarters. had each loan has last our
shifted of rate is flattering and lower These that lesser mortgage portfolio quarter's rates meaningfully rates are on portfolio for environment recognize much securities long has of reduced extent our lower. end also yield yields the margin expectation the While the our yields. our significantly XXXX. lower interest is net have explained and this we long The curve term interest mentioned, end the by I've since factors to a
net NIM assuming no the in in LIBOR stable further slightly be than estimates. fed funds interest to lower XXXX spread Additionally additional action. margin expect our our XXXX fed Consequently, decreasing to persisted, it we now compression has was
fees. from quarter contingency increase income income non-interest up year-over-year. million last our $XX property eight, of and was last million insurance $X slide primarily to from up first and Turning casualty quarter realized $X driven from business higher as quarter was we by million The seasonally
asset business losses our These Additionally, typically quarter non-sufficient that to than mortgage loan our was did fees do the funds the due somewhat we offset in quarter fees lower lower prior on increased in not first they were deposit by account the first incur occur and charges up in gain had gains the this quarter. sales and quarter service fourth in as customers quarter.
due were part fees capital lower income. rate of Our interest markets swap in down also
expenses to FDA higher driven decreases was we surcharge, compensation nine, stock adjustments. run by associated million by quarter benefit well $X resulting down of $XXX assessment. The in the of below and pension that quarter. expense million and a also year this discontinuation was Moving rate reduction from guidance non-interest provided. the fourth The slide the full miscellaneous of partially $XXX decrease was offset the million expense to these were of FDIC employee $X Certain down million
to expense had snow costs, we hope due sincerely higher will not elevated quarter. occupancy also removal second We which in the occur
remainder with the third the XXXX, approximately to in quarter. expect to the occurring ahead rest and charges second majority Looking the the the million, time quarter incur transaction one Huntington related in $X we of to
Huntington related the we additional our of for customer expect full target branches second when We the expense previously also continue additional we the in rate to million and guidance XX of anticipated and year to increase not-interest We expenses these activity. of the $XXX expense year. run net half as a result provided expenses our
from adjusted the in point relatively potentially confident Our ratio. $XX credit still levels up from loans, ratio full slide On XX our loans decreased loans quarter we XXX million, the in portfolio. charge-offs Net the $X efficiency up quarter was quarter. the in and was losses million previous the quarter adjusted the quarter, two detailed quarter loan in We allowance basis provision increase $X first we seen down quarterly quarters while compared was in XXXX. relation are the problem XX.X% quarter; total will our from And increased loans improvement down were year Potential over achieve the previous from non-accrual an of million efficiency of non-accrual in guidance last to to million, $X of by of The but losses our that XXXX. our our loan remain for from metrics. for but first unchanged quality fourth is third this billion aggregate small the $XXX million flat credit X.XX% quarter, three $X quarters. to
Our benign. remains environment credit
outlook slide XX we XXXX. on the our update of rest for So
loan anticipate for We average growth continue to to year. X% the X%
begin second estate in half of the We expect continued and to industrial the portfolio real solid and growth ramp-up will our year. commercial commercial
curve, the rate additional be expect the the in margin our mid-XXXs Given feds interest will year flatter on full dovish and fed more no yield range now outlook net based we action.
We are be to able $XXX meet our continue we'll based comfortable expense guidance. we revenues and improve the that non-interest million expect year-over-year to fee will
a up and pay not share disciplined remain growth as value. open in growth, optimize opportunities fund capital for approach comments, competitive capital look we and to shares. questions. acquisitions dividend, And repurchases changed your those to it priorities have organic We to shareholder I’ll repurchase organic Our our we build non pursue look and as with
