to earnings welcome XXXX our quarter and you, Thank first call.
Niles, Chief Officer Joining me Credit our Financial Ahern, today and our Officer. Chief Chris are Pat
can you the needs Associated generate continued and grow the our see profit materials the during customers, our three net months of year. first to of meet from As
base, We high a from to core strong resilient a continue presence market and quality funding benefit portfolio. lending a
service. and our actions transition by the only But by through first banks We we've The we closed are taken of past XXth the the help our now colleagues. discussing becoming I'll highlight on radically March to start customers to experiencing. let appointment our extraordinary, two to response changed to protect and me one environment, branch months lobbies our drive were
now March wonderfully remotely their jobs customers. of send began Our performing people XX% home. to colleagues and branch our We responded on to the meet needs and have of our operations teams from IT to work XXth, about have
continuing whose measures. distancing were pay by of those our including jobs are colleagues, our We all to curtailed social
relief. certain of customers, small loan of and COVID-XX business our approximately fees mortgage relief customers loan program Tuesday, granted our also we payments. meet payment some as and waivers are lending needs transactional own been fee faster and than deposits liquidity quick customers' to even all form consumer offer availability Through increased with and have or a ready of core We providing were deferrals both financial primarily X,XXX of to loans. From our perspective,
Our loan quarter. to the ratio deposit during strengthened
XXst we've continued business quarter-end, since of $XXX customers Protection support Paycheck million nearly funded than addition, small businesses. for SBA loans In April through X,XXX our we to Program, as the have of more
other to PPP second are round to SBA. year in support continued or come and housing the also times, Treasury to banks the a our the over other continue essential program we We $X may difficult ready from million of donate communities our local Fed, programs, in We've these support customers and food programs support the to that the services.
to recently efforts hard, the these remotely to loan we COVID-XX get difficult ready and X,XXX help footprint. and working United Way addition, but donated In has new up our challenges and in this local our programs while customers through been met Standing we've stand period. processes, other relief
reduced core The up cash credit as had deposit to loan draws lines turn which positions. were net contributed customers portfolio their business-lending line of increased me earnings particularly acquisition, $X.XX first strong February deposits liquidity. as Staunton the for our $X.XX customers draw acquisition-related driven by loan share, and closed were commercial to costs, also The built let turn our First results. on drove share. in in own On and growth. now growth, XXth income GAAP a quarter So, Slide earnings X, interest our per and per Staunton excluding We financial resilient First expenses,
funds of fourth our pre-tax, interest quarter, basis margin in a lower X and elevated increase slightly coupled million the Our with pre-provision The increased the from in growth from point loan $XX by rates. resulted margin LIBOR income net cost fourth driven higher a quarter.
commitments additional support of repurchasing the growth, million after Our to $XX CETX loan ratio us in capital X.XX%, was common ample stock even fund quarter. and giving our
of We going also our million, our $XXX Xst, implemented resulting for provision to CECL losses of in economic as the allowance January first quarter increase million one-time a credit and reflecting outlook $XX forward.
residential from balances months X. lending quarter. commercial and business are Slide the the up trends in fourth and million saw Residential shown were of lower increases solid on driven $XXX as growth mortgage the Average estate. and two first Total origination real payoffs in balances loan mortgages, we quarter, was by loan commercial
taken While year. second applications we over the about which mortgage lower continues due be to our anticipate the payoffs about in this We've to $X.X last pace strong. mid-April, in through is saw to quarter period year the be billion double rates, we same pipeline elevated
commercial Growth our in driven our and power was vertical. business by and utilities portfolio
contributed strong March pretty in the of we in and oil gas gains while had off quarter, these had decline warehouse seasonal pipeline growth offsetting commercial mortgage customer general in of our and the and quarter also run Additionally, the purposeful REITs to production, strong portfolio. were much increase, lending draws the
We of mitigation and as expect to we book, the risk pursue reduction opportunities. our additional oil gas continue credit
construction loans January estate on we February, also debt, real estate real saw focus as in and pipeline. also term results construction solid We particularly in growing loans funded increased our from commercial our commercial
up X, activity April uptick and Turning in in end drawn in period highlights began trends, we commercial a significant we general experiencing show March of lending customers which to Slide credit and saw built of cash. we as mid-March, lines loan
lower a In as expect and March we March. increased rest customers had delayed payoffs in rates to in balances the elevated large that X. liquidity right-hand and CRE wave further impact as and Program April also warehouse remain refinancing the line this we Protection loans, in activity refinancing induced on in the participation mortgage the Paycheck of a Slide draws also Customer CRE of through chart subsided mortgage highlights demands increase We have year. shown for graph, detail in the our in
applications of that loan applied of we difficult new about the XX% in dedication and was Standing guidance customers program taking day the funded our $XXX for. colleagues, X,XXX by by on this Through and so created to of in had hundred of matter support first forms always program the representing one days. we April effort all modified dollars and working nearly over were began the loans Xrd, XX% about offered the systems tight for by million loans the and of a and change We up made April XX, great through processes the several of remotely, PPP timeline, is was a the for it more SBA. and
for have forgiveness third facility the We customers in anticipate these loans, during of June and to the loans we late Fed's advantage of the quarter. taken our begin the will forgiven PPP applying expect will bulk lending be loan fund
as to facility process, We've to through expect get authorization extension these will as so program, be lending we to expect already applications the those received, of taken we opens. the funds of all that additional soon the SBA PPP ready portal X,XXX With the the well. PPP fund we applications as expected an fund representing million In remaining access loans, loans. to their $XX turn
over waivers our relief approved and which offering modifications and XX, X% $XXX commercial X% we borrowers, of X,XXX retail and deferrals we million business loans. On we've $XXX program million, March about hold loan total our lending the and portfolio. mostly of April is COVID include or oriented book, approximately or fee loans or of consumer initiated by million by loans loans residential for X% in book; $XXX deferrals business commercial $XXX own of driven our estate our our The real customers, our million and hotel to XX, approved totaling about through consumer and
of Additionally, relief or days in we refunded for businesses. XXX,XXX program, and our fees the waived first XX consumers small in COVID-XX
to able and are financial solution We our of to be some crisis. of customers' to pleased stress help economic relieve be the part this to
hydrocarbon On X, or to exposures proactively the borrowers prices. to environment. introduced billion current categories with navigate current the quarter. lower risks. of laid outstanding our portfolio has commercial across COVID-XX monitoring X, first end activities loans and balances $X.X working out of These increased impacted the them Turning help loans we've several potentially our to the of Slide by represent Slide new environment are We've and X% at the bank,
the category largest of area exposure X% centers. loan to Our is retailers in is Approximately representing retailer and shopping book the nearly likely of million of CRE. $XXX
In addition, to $XXX approximately retailer-oriented investment loan grade have we REITs. predominantly million
less gas gas and additional set the continue the down which to book for loan during our quarter. first X% loan and our portfolio, disruptions oil pushing oil with of accounts aside against dramatically. We've demand portfolio oil cost our than of reserves monitor loss now We
expect to the prices positions their over while hedged our of it prolonged a of take lower period losses industry. near-term many customers we a stress will for may While have the and develop, that
fairly the to loans $XXX hospitality with million of total over exposure to representing loans. of than less Our X% hotels, is industry just limited
We other also to million companies. approximately carry loans service $XXX restaurants, food in and
exposures limited theater business. fracking in with the customer one sand just have or we of that, movie Beyond each mining casino,
at CECL X, Turning Moody's we've forecast CECL the of both to baseline in the and the to quarter. We first quarter. beginning Slide end the the leveraging, implemented outlined Bank's transitioned
by our of an adjustment X relative losses of Day Day the company. prior as at oil debt sand reserved and level January fracking came restructurings $XXX Xst. higher credit increase in was was adoption identified Our largely troubled in portfolio which guidance gas allowance and in to driven our million, for The mining probable X
our the the changes oil XXth dynamics and unfunded the response the also respect million. of for TDRs prior industry. provision key our probable our for With bolstered These slide the factors the quarter. provision and loan reserves the majority we and forecast provision the commitment March in book, Moody's quarter, additional which overall drove and economic added identified environment on for Further, to million in our leverage in $XX in exposures, to highlighted additional price by gas we the we baseline commercial $XX given
compared million with allowance reserve CECL mortgages. XXst. charge-offs at for outlook In given changes QX year-end. in reflects $XXX on quarter end, Our and the March loans credit losses of to our on the a expected risks increased reserve XX% our in along as $XXX net increase adequately $XX build, million our at portfolio, was provision reflects net million prepayments the million at of believe total of economic the We aggregate, $XXX loan build modeling life this
XX% in also our oil million our and adverse last and severely Our produced of gas. current to losses ended build our allowance $XX the with ACLL specific portfolio, reserve oil scenario. of remaining internal reserve and gas against stress test potential XX% the quarter we was an has levels cover over nearly of
just under ACLL, nearly basis set predominantly X% Our overall against loans, portfolio. CRE against XXX and our blended X% loan with consumer represents of total exposures mortgage set our first points
to COVID-XX, outbreak outside of XX, gas. oil prior remains benign the environment Slide Turning to of the credit and
downturn Given the programs. economic and relief sudden customer
outside metrics oil credit relatively steady. and gas remained of Our
potential loans C&I to by gas $XX and on quarter CRE credits increased coming a and million names. Gas During the of $XX and residential with million the additional problem loans driven remaining $XXX million from Oil uptick majority and $X increase oil attributed few along general Non-accrual with some mortgages. the million, to
as COVID-XX, were their industries a $XX monitor of rest we of on support reached risk has Loan outreach disruption coming time. turbulent exposure. essential understand specific been million, taken the impacted. customers additional oil out deep company's this Along this to of in of to an the by and addition to With needs, half liquidity approach charge-offs with our proactive detailed loan component customer our have portfolio, customers a C&I. gas as the examination indicators through programs as this and analyze has monitoring credit To environment. with deferrals in and general address in Net delinquencies portfolio our we've from outreach to the undertaken the issues capital evolving overall their officers and identify to about customers we the brought industries relief continued with company leading
fourth balance acquisition, the which the growth $XXX Turning quarter, First in up Staunton million to $XXX added was were deposits driven mid-February. the average average nearly from about Slide of by deposits XX, deposit million
low shift of at later end quarter. balances up savings deposits made These customers inflows $X.X XX% demand that in the deposits of of came Our our cash. deposits increased mix as $X.X and beneficial low-cost end overall a built our resulted billion period nearly of and up billion, including in quarter the cost the
the XX, inflow strong Slide to us also to is deposits Turning liquidity. enabled maintain
of funding with deposits. to wholesale continuing ratio Our stable demonstrating has remained our fund ability our loans most
liquidity funding with us available, in additional include do billion facility. PPP not loans of the have funding Fed's available at continue to billion $X to through wholesale These FHLB capacity including the deposits, the lending expect $XX we While that's we Chicago. figures of
gives Our discipline maintain maintain loan expect was ratio to within us historical and well flexibility to XX%, our to we below which deposit range, ratio this XXX%. pricing deposit
of to fourth and XX, net that interest the quarter. Slide in increase income X.XX%, from margin our net point basis $X our NIM. interest drove increase quarter an several were X million and factors Turning NII $XXX the million, previous There from the was modest was up
of refinancing the higher asset in lending residential by benefit remain the side interest elevated commercial long-term one-month in book and and mortgage a significantly March coupon On decrease fund CRE business in Fed yields. and particularly positively March. in over rates LIBOR impacting was elevated pay-off in loans This rates, resulting the offset
reducing rate of recognition drove yield. prepayment our accelerated further mortgage increased this deferred costs origination Additionally,
interest-bearing as we decreased were Total basis interest resulting by These NIM On pricing point for pronounced our most XX decreased reduced low-cost deposit deposits side, shift factors basis suite the our X.XX% liability across beneficial and month. of points, wholesale for March, total mix that in a XX in costs. toward bearing funding aided reduced full cost deposit products. liabilities a
yields ahead, XXXX We later uncertain. into Fed Looking commercial spread will and April conditions become to economic May. we anticipate normalize in funds LIBOR rates loan will less the in the from least at benefit elevated somewhat as LIBOR expect continue
off benefit full the We impact interest points. and month-to-date at quarter bearing CD our to pricing, but also in our we from approximately deposit as our reduced a already April continue quarter run costs note that from is expect cost to XX decline of basis second running deposits
of up quarter up quarter from was XX, million Slide to and $XX year-over-year. $X first income Turning the million non-interest million $X last
we our our contingency receive seasonally as and in and the lifts capital casualty fees volatility. groups insurance markets Our income driven market higher was quarter saw revenue property by
in mortgage benefited the income. partially banking was million $XX resulting but $X offset gross million net MSR first of $X of from million banking also that We revenue by mortgage a quarter, impairment, in
However, sensitive due mortgage-backed categories investment -- program further gains COVID-XX realized part our QX, and impacting largely down were and on fee other to under and levels, lower of due most These in in fee activity. relief market to other the resulted sell -- offset assets categories softer were declines net management by prepayment securities.
lower spend. of done business at Business million less travel reduction of in place were year. the took the non-interest the $XXX during advertising XX, hiring and decreased was less the was last the also reduced and the Moving quarter. and had costs $X $XX quarter. primarily advertising to million seeing costs, the consultants, million to of which due fourth costs lower environment Slide development from This to due expected restructuring decrease down of Technology in incentive expense fourth have the million personnel of benefits reduction current the to end planned quarter, compensation, response as are from we $X third-party
our look you'd January. as transactions XX, April the than traffic since customer Slide in branch branch is with to activity pandemic we expect down began XX% about at Turning lower
XX% We same in drop also ATM period. for time transactions saw the
As our home. increasingly chose customers to stay
uptick our signed in January, Open with into which as with significant online their Call several move an from were technology their made also and in non-branch we've increased the since the has volume our to we shift devices. use able We open channels. mobile activity application, increase our of customers from and in mobile XX% However, or customers our accounts center, communications online customers allows investments XX%, mobile. last to over digital branches sessions, the years, to
on will of of first remain sufficient loan anticipate to in common regulatory at the repurchase our X.XX% seek repurchased CETX XXXX. capital million capital levels customers the As further if our shown but support it March quarter on XX, the and quarter, program of and $XX end have we growth, remainder XXth. continue strong suspended through we to stock the build We our Slide liquidity. was
We remain to suspended of the expect remainder year. our program for repurchase the
XX, discuss our Slide we outlook. On
no quantitative be should previous extraordinary relied longer upon. economic guidance the uncertainty Given our
we'd provide However, the expectations like the more year. for general of remainder to
ample liquidity deposit we to with will to remain loan be and we funding fund growth deposit XXX%. While ratio sources, growth expect loan and expect have to our able under
portfolio investments lack investments XX%. and targeting of Given the to attractive for assets now we're ratio of our total
We expect customers. our provide relief our to mortgage offset will well, service as charges by likely banking do business to lower we but continue it to be
expense and the wealth approach we control, to line year our in lower to being face first that for be management, as often We'll due in continue factor the quarter. with market valuations. of one about our expect disciplined also will headwinds run the speak costs we that rest We rate of
suspended build we our mentioned, for remain year will repurchase As the suspended capital. remainder and a on of March expect that XX, the stock program we as
With that, questions. your take I'd be happy to
