second XXXX call. Thanks and quarter earnings welcome our to
Niles, Joining Ahern, me today are Officer. our Chief Chief Credit our Officer Pat and Financial Chris
increase preferred to significant deferrals, Consulting and fee a Risk future the meet needs of stock while of ability of our funds. Associated PPP customers successful those focused stimulus customers Associated I issuance. of how the our of on proud challenges. colleagues second with the sale payment loans, with communities and ensured to waivers and thousands of had our of protecting customers. health but capital the We am my have a colleagues We We Benefits our and needs quarter. and responded unusual, meeting needs an the through distribution the our met in
inflows liquidity. seen of abundant have deposits and record have We
zero on our revenue by we interest the managed With brought rates, challenge down. expenses near
COVID credit, our pandemic no could saw the encouraging early impact from predict the we borrowers. signs some on one of While ultimate
financial at results. look let’s our So,
by Associated and the sale million Turning to $X.XX gain per draws. second programs including were of line to deposit well. quarter as overall during Benefits commercial Consulting. with the along led grew loans Average funding savings Slide rates increased balances earnings loans and largely share, and $XXX considerably our PPP driven X, higher stimulus Loan government Risk on GAAP quarter
to was the of loan quarter, the deposit were without cost of deposits at and XX% up XX% total Our ratio of our end deposits. PPP XX% made low
capital credit allowance While loan in our $XXX metrics of ABRC of or for X.X%, preferred of million ratio The yet, as million reserve quarter XX, losses the we first of stock basis issuance increased and from loan lifted haven’t increased loans. significant excluding second XX for quarter. was XX.XX%. sale the seen to PPP points our our during ratios. $XX And changes the CETX June X.XX%
$XX.XX. last credit. to Our $X.X Average driven value general XX% increased balance also on per are business and tangible predominantly book X. from loans Slide commercial moving PPP quarter shown draws on active market up increased mortgage grew Commercial billion, nearly and warehouse by and lines loan of trends share lending
second production to CRE as Growth and of the loans. driven draws saw quarter On construction these residential end new loans of down. during second commercial the sell paid unusually at first quarter, funding average, While we continued was continued declined the new progressed, line agencies. plus as loans in high some mortgages lines the by we to the primarily quarter portfolio
billion of net outlook of our will commercial end the quarter. of regarding balances customers repayment activity. their pay-downs X, as of quarter. of more with than these by view PPP trends, quarter We partially lines was offset of second lines was first period sign did $XXX first $XXX optimistic quarter. which the second outstanding in highlight at the a over ended We increase Slide $XX.X to loans, Included during of from million the show we these loan This end Turning billion million liquidity on quarter the a loans. general have they the a $X
portfolios quarter $X commercial billion during As continue end, of to the real had previously XXXX. commitments, expect quarter. into nearly to At up still continued over estate we of we and grow which fund XXXX the mentioned, balance our will unfunded
We over expect of estate our commercial balances course year. to continue real to grow the the
look our the to end the second let’s page. composition Slide X, our next the identified loan of second which on column, the I exposures, quarter. will key portfolio Turning In at COVID at highlight we
We which remain broken loans loans, have also out our and our minimal. non-accrual deferred
expanded PPP X% loans economy COVID loans received on responded modification received key and XX% loan needs X. As by modifying deferring we both. to quarter, the the Slide PPP as our commercial the on customer’s pandemics of shown have and a exposures and during the loan Approximately, second deferral, received underwriting or impact XX% by certain
quarter. of first look the let’s we on is the COVID update Now, at in loan our This introduced key an commercial Slide slide X. exposures
on are further We our and our about loan to each continue collateralized amongst about at quarter, loans non-grocery remain this risks second million monitor X% Outside estate, The concerned industry. reserves represents estate These which are of loans of for declined portfolios exposures exposure remain we In restaurants the to Making hydrocarbon Oil price impacted retail outstanding loans. loans average of last Hotels of we next ratio of COVID-XX our our deterioration. of represents investment centers. largest XX% grade believe approximately for categories shopping commercial $XX of quarter credits, X paid and anchored $XX million malls, to first last by these also about from portfolio. providing which real had of the significant our our a store down REITs, up account lower and from largest quarter manageable. is The majority remains less retail-oriented Slide quarter, an the million quarter. the $XXX and predominantly categories centers COVID-affected balances loan-to-value strip than still real loan these industries Overall, our by would less originations loan to of potential loans X.X% million. exposure. the area end Despite creeping immediate prices. back cushion gas commercial second $XXX of oil details at the loans grew limited. highlight, table up X% and to this our for We billion book, is and potentially outlook portfolio. X% total the on and the retail are exposure retail than retailers and gas, oil and from of in of several we $X.X balances.
seeing relatively quarter-over-quarter. and remain exposures dynamics positive are our We unchanged
had real Now, over for loan our At $XXX commercial customers hotel, business primarily highlighted the $XXX barrowers The of completed the our me that about XX% book. X% commercial deferrals Commercial deferrals on million of and estate, million COVID about on let commercial representing comment loan X. lending XX, loan had of included retailer real relief of we estate Slide June book. deferrals. comprising efforts million $XXX just commercial of or
not in with requests and ending assistance. New many commercial customers deferrals deferral slowed the quarter for asked additional have as June progressed loan
loan the finished of relief the residential highlighted of COVID consumer consumer deferrals total loan Slide consumer-related quarter or We efforts X. $XXX and with X% second are Our on million book.
half the since the since have in New June. deferral essentially May of ceased peak and latter requests substantially slowed
our waived our June refunded refunded Since we through nearly pandemic. during small for We COVID-XX businesses also in fees $X program, supported or or who relief XX. many fees of have the customers waived and million implementing consumers
payments. are to Based Despite payments. those of positive, of nearly payment. having real of are start waivers, corporate many returning XX% early signs as consumers in banking we payment small made with early completed making X, banking had $XX business to remaining Turning XX% loan deferrals on granted to subsequent payments to been small expect again. deferrals have and Slide loan corporate payment during customers business, are deferrals who About the payment customers received one In to estate are $XXX all expired those, of normal return June. over June in about least ended and structures. of of expected Commercial during half million discussions, loan million expected customers deferrals making making at deferrals customers and with to resume
consisting these customers of or Of retail extensions. hotels additional in further have about assistance of form require expect hotel other the neither requested some one-third properties we to of the The loans majority half sector. on being the deferral, with
the of June. we quarter. second at total XX, to during Turning $XXX This by have about $XX you our brings allowance built million end Slide the million to can reserves see
covers total reserve Our of loans. X.X% or excluding PPP loans, X.X%
overlays. June our have baseline Moody’s the reserves modeled with We our own qualitative against
loan of non-COVID affected industries Reserves set X.X% covered Additional pandemic. by balances about X.X% loans the reserves certain affected on COVID-XX compared were COVID-affected for aside loans. to for
our estate reserve commercial see, build of attributed and can you As to is the gas. oil bulk and real
built by quarter, our profile the up we risk reserves portfolios. the reflecting in hotel retail we our During and see increased $XX CRE million,
were now of Additional and cover $X XX.X% portfolio. built and gas reserves increased up by million on loans, which also oil the
commercial commercial can most see came by real Slide commercial C&I metrics credit but million Non-accrual problem real gas, million, have XXXX. to portfolio. from of remain up of key but slightly slightly, driven our $XX and quarter fairly COVID increase within $XX are loan Potential Turning elevated million XX, you general the $XX estate. rest increased second loans drifted and exposures coming estate the the the loans only with from over increased of oil stable.
exclusively to continue in the space. charge-offs gas and almost net be Our oil
the shared banks reserves and The of conservative increased of Our loans outcome oil basis reserve quarter. credits from view gas and down portfolio we the level other all points as our with for wind these some last this reflects in a high are ultimate XXX business. of
checking savings and Slide Deposits loans or this the average low amongst from staying X% government money accounts, due elevated to and in PPP consumers. to Most over remain $X.X generally nearly quarter. XX, Turning cost higher were billion accounts first rates growth non-interest-bearing stimulus of up savings came deposits accounts.
as the mix the of Our overall deposits these our continues second of quarter. at up improve cost deposit low made XX% balances to end
reduce quarter came to our was XX at in year-to-date driven cost near of in X.XX%. across margin to being June ability Turning as yield liability Total Slide debt interest-bearing relative to of a compression margin interest we cutting is income net result $XXX rates and as reduce pricing board. by to points Pressure zero. to million deposits the the dropped basis second on XX, asset cost
basis rate and stabilize somewhat reductions. the declined XX points June to While second in points quarter interest-bearing Total remix quarter, driven by from expect our we deposit base first recover of totaled XX interest the in liabilities basis and QX. QX NIM NIM in
mortgage Gross $XXX income of $XX at quarter. Slide $X active The to by banking million mortgage an million impairment from second QX. fees million was banking in came Turning business of of net service income in increase resulting million. deposit XX, $X offset charges quarter remains a during in by activity customer the decline of saw in million quarter $XX economic second about non-interest resulting the $X MSR driven million mortgage during income. account We less and and first
activity We of on to the expect year. the gain during was million quarter. The we the assets go recover sale $XXX as through
related million share, further was The of quarter in equity broken XX. related sale the $X.XX. the down for. $XXX in GAAP gain $XXX $X million and by loan. per an write-down The proceeds excluding were was oil bulk have that We to write-downs. on gain, and and next the of non-AVRC this resulted and the driven June ABRC transaction accounted about a million $XXX after-tax from closed interest was We restructured earnings of company The gas after million in we a Separately, losses personnel gain of sale on a on second net recognized costs slide.
look Turning at slowly come to back to activity. XX, activity customer since Branch Slide we started April. has our
increased and moved of to resuming the as away also have XX% spending to only to lobby late. and of use card the customers credit April the levels XX% are has this lobby, but Prior XX% drive-throughs. However, from COVID, continue Customers as place from debit spend about June. in transactions took normal to using shifted
offset This strong banking. continuing mobile you trend, branch positive decrease to quarter. plowing down in weren’t from which by the marketing During as expense $X travel we run. equity is quarter. have outbreak, reopening, across $X and less due a activity first million active Business feel the seen down expense million $XXX was lower down trend commissions. efficiency down XX, had the during in long was million, with higher several expense expenses users application a have June. non-interest lobbies XX% downward mobile see opportunities benefits, Occupancy million were was snow. $X partially increased Slide shift categories. to will development $X expenses. from spread COVID The plan we Even provide of our since the was fringe Total and million and business On advertising can to we Personnel January we
regulatory added TCE ABRC Slide XX.XX% levels capital remained XX first increased strong. CETX ratio our CETX to basis ratio. our XX sale As points shown XX, to Overall, our from quarter. to the on of points X.XX% The basis in and
Our equity ratio X.XX%, to X.X% QX. tangible common increased from up also in
mentioned, I the now first is share up book from tangible As value per quarter. XX% $XX.XX,
to build XXXX. of through expect to We continue remainder capital the
items. includes Finally, on which Slide outlook discuss several updated our XX, we
QX expect we stabilize We our to improve see in margin as loans QX pay-down. and PPP to in
early of X.XX% continue elevated in COVID-related loans expired charges in in will continues have come pay-down For to fee service pick return start QX the Mortgage levels we as and banking be our and assumes year, X.X%. PPP full to This and QX to margin up. the normal ‘XX. in will activity to waivers consumer to our expect between
they expense current in ABRC. quarterly happy expense for half view sale have anticipate in on an first reductions next be guidance million with our your quarterly low our our expense due stretching our the the to be to run-rate we are With within this we be to taking will through would beyond and more expected economic half. of answer we about later questions. quarter. loss less the rates outlook currently the we is to look to than that, Based were year, activity $XXX $XX provisions base Our over discuss year And expected second loan a at million of footprint, from of
