you and to earnings XXXX quarter third call. Thank our welcome
in likely areas an needs. extended to respond interest the today Credit been since Joining Chief Officer; in our Pat unusual Financial meet low an seen mobile control. became virtual we shift critical accelerating and through us With very can have our facing We and to a customers' Niles, online challenging this best deployed We Chief to it to ourselves interact to in rate channels have delivery been seamlessly our period, our and year. for and environment banking. pivoted Chris saying response a Goes Ahern has pandemic without Officer. and are that channel March retooling me
have slide optimization subsidiaries. during quarter. On we detailed restructuring securities and and with the the lending start two, the actions estate our of took our real Let's efforts third we
quarter our third consolidation we XX and planned sale announced branches. of the the During of
of strategic the announced streamlining and several functions. managerial also corporate We back-office
rate we but and of reduction $XX result per QX, charges drive XXXX. a $XX into expenses, to we As million pre-tax we this in expect move actions, of our these incurred as these year run million changes a in quarter
excess QX We also deployed million This $XXX about to pre-tax $XX repay prepayment of of advances. in expense. resulted half a million FHLB liquidity position our
expect improve $XX by we million, interest this but in and through diminishing net XXXX, annualized savings continuing with However, to through XXXX, income into QX beginning continuing XXXX. XXXX
in unlock able of we Finally, the benefit capital lending our through million during after-tax estate to real restructuring quarter. resulted were securities a the losses subsidiaries and and $XX this
quarter. QX the on slide during of slide income. On Turning EPS, various provided costs, to our initiatives the have been pre-provision million restructuring which executed walk a the our we've four, of Adjusting PTPP of for pre-tax the third initiatives three. million. impact $XX down $XX prepayment We've highlighted quarter would breaks forward and
our initiatives You'll realized notice reorganization when we subsidiaries. costs one-time tax of of more were affected, the from than the efficiency covered by the benefits our tax
$X.XX. the within to If from restructuring is our you of GAAP reported EPS benefits both were exclude $X.XX for charges tax result of and quarter, the third $X.XX the EPS the adjusted our
effect, to largely the net items book were each our quarter this other. additive in So offset actions value. tangible The
credit. general Commercial commercial largely average, their commercial other billion as commitments. $X.X lines had loans. the average. the Turning our continuing loans balances $XXX XX, used $XXX by of lending average $XX estate and from real we of Total And at million still trends increased open customers on billion, loan to Average September grew in prior excess declined the driven down by down are liquidity slide to at million, five. came balance quarter's slightly unfunded real hand on pay business shown. funding Commercial of construction estate
construction quarter, million to Power the balances was grow susceptible end. oil call and by up were total in mortgages. with which six. strong, refinancing portfolio. the during real in continued activity $XXX balances. commercial utilities loan X% throughout end-of-period remained changes Mortgage $XXX million decision investor highlight lending of driven which sell slide loans nearly to for up activity at during which Period-end X.X% QX strong now out lending our loans, million. down reflected the Consumer commercial XXXX. and have and real to lending, by also and of estate again quarter only elevated estate along was represents in driven prepayment $XXX our million growth declined We gas, I'll quarter $XX balances loan and warehouse lending Turning or our mortgage came
deferral me provide deferrals can let decline. see have Now continued you X, steadily programs. an to commercial our slide update On on our
As of active loan approximately $XXX XX, from deferrals, commercial million XX% down October we have and June. of
and $XXX commercial the COVID-impacted rolled million to Commercial of commercial retail just related October Commercial declined million lending to deferrals are business deferrals loan Our their less largely hotel off have the portfolios. book. XX-day estate at terms initial that they primarily are X% related borrowers. and loan to deferrals than and business $XXX remaining were of and have million comprise primarily and now and $XX real XX, deferrals
up Taken and total commercial estate XX outstanding. of $XXX commercial about real million X.X% together of deferrals the at loans commercial active make October our
represent approximately expire we from the on deferrals, most during that still remaining will June. those important of XX% granted $XXX deferrals expire X. and not pandemic million of any so months virtually deferrals customers, The now deferral It's deferrals COVID we bulk first deferrals of the those The that of is however, X% – $XXX the consumer-related to $XXX period. began we additional million deferrals to the for are virtual will loan balances. September. note, for highlighted October These At expect beginning efforts any slide six on asked In of of active to granted who of during of had relief assistance. XX, were October their require bulk consumer down of the active balance Our million outstanding loans assistance.
low go baseline forecast loans Among available have of deferrals COVID update. back their have these we've the off those borrowers XX come and On many roll-off Moody's vaccine additional the at assumptions. forward-looking allowance ended deferral for feel past current The million XX% is book, our forecast confident that performance. stimulus the we're are point utilized pre-COVID in becomes will We baseline CECL than a of XXXX. whose in of an to slide $X September X, we this XXXX QX assumes widely and continuing rates provided deferrals or only to continue consumers, days that So or due, trends be additional less have asked positive consumer seeing assistance.
chart, we allowance of from million, illustrate quarter. QX I'll ACLL net was trend to $XX top build where prior in our XXXX. For the only the you down XXXX, $XX right during the million direct
can overall reflects credit our net all stability real-time our build You has see exposures our quarter our off the loan and portfolio outlook reserve year. at tapered the of This throughout for end.
actually manage build down. lower our real page, declined continue portfolio where The and commercial Reserves lending reserves on you gas QX malls reserves table in see portfolio was we this on reserves released can exposures. other $XX categories four estate in oil portfolio added shopping to investor largest our and that As related the retailer to as three. we during to net our from million and added we in
loans. metrics was million presented XX. slide XX, $XXX our covered Credit and of total September X.X% allowance are of on As total
quarter. the made our non-accrual increased problem COVID oil loans loans, As reflect Loans for Potential company two primarily oil some substantially evaluations our sales included $XX Overall the driven remediation Reserves of nonaccrual. due partially This million, Outside XX% activity up than Charge-offs to which was $XX million. and and non-accrual gas in inflow by and quarter. commercial $XX migration charge-offs primarily net real-time migration remaining the of with sand a the million, at fracking offset commercial mall-oriented on by were loans were note this COVID-affected over of our key risk the by will deferral gas non-accrual the to QX. million estate REITs again end and the XX%. and $XX to remained and reminder, of that of loans the charge-offs, driven real these $XX quarter into million metrics conclusion rating exposures, less non-accrual. oil expectation book declined active payoffs. for gas, of credit all come loans decreased only
quarter. Turning third to deposits the second up the slide were Average and Liquidity $XX.X accounted balances Average to quarter. came this XX% nearly our of from the billion, Low-cost deposits again X% or and XX. quarter. improve. high our end mix continues remains of accounts $XXX check-in over at growth low-cost nearly for savings deposit deposit million,
Turning to XX. slide
net that bottom QX July August to interest million, as rebounded in to $XXX was out income QX. September. X.XX% of interest previously bottom net expected with up in margin quarter X.XX%. and then margin We guided hit net up and margin a in we during would begin pick And and Third interest
Asset our while third yield quarter, stabilized liability trended cost the during downward.
and to continue We XXXX. expansion QX to into further into margin expect see
or repricing on to migration over our in This other implement other floors XXXX. happen to with or We expect continue commercial into new time will anticipated later conjunction and indices widen to we loans. loans in the actions spreads our LIBOR-based including credit LIBOR new as renewing SOFR and
X.X% renew over repricing lower. side, generally today, have roll declining deposit from time and basis approximately On they're the below to points. XX levels liability repricing our been CDs both When or
to We repricing XXXX. lift into margin this expect provide going
FHLB impact Additionally, prepayment from the during our we'll advances. full see of a QX quarter
and $X interest We expect the this fourth quarter 'XX. $XX a will in provide benefit net improvement margin million to million a in about
Turning XX. to slide
in income came QX. QX Non-interest income $XX non-interest lower quarter than Second in at million. was
of of of million. gain ABRC second QX $X However, increased and fees and the from large in in Service $XX up this course, XX% from from Risk the increase nearly of million charges driven quarter-over-quarter. forward. the deposit by quarter Benefits account Associated came fees Card-based lack Consulting at million, sale an and $XX going to the revenue was
these combination the COVID is well more So lines. as relief activity economic down driving fee of as normalized winding
strong million million generating for million. in of of over was banking quarter third this After activity of the the MSR $X impairment in year with $XXX net quarter the half to just mortgage Our first nearly the sold remained $XX million revenue. impairment fee agencies mortgages $XX
heading fee trends Slide QX. highlight XX, positive into On our expenses. we expect We
previously costs million of reduction trend expense restructuring lower at the mentioned. The $XX largely came by of Core $XXX including third million the sale driven to in following continued expenses of ABRC. quarter
into executed adjusted expense move the initiatives expenses can in the lower QX right an average assets you further savings as is trending run below on our provide X%. or expect to rate basis we XXXX ratio and to already chart as We from see
for the year As capital at share tangible our to the levels or the XX, end of ratio the points XXXX shown per reiterating increased At XXXX $XX.XX $XX.XX prior items quarter. reflecting XXXX. XX to where actions per the common our also On levels basis on the remain of and X.X%. strong. expense for Slide from regulatory increased share and equity net shareholders benefit value additive capital we remainder in Slide took Tangible XX, up were select guidance we above QX, during our the of to our regulatory ended updating book we're for quarter
We X.X% net of slightly or margin in expect fourth higher the a interest quarter.
including the full fee to your year XXXX reiterate The we'd that $XXX million Expenses be year expect $XXX restructuring expenses low digits a on remaining will We expect of our mid-single to continue in to you. million at to to the And approximately expected $X for come year positive full between are with expected tax QX in full be XXXX we rate questions. and end happy We are of through Thank rate XX%. trend costs. XXXX. be XXXX revenue the tax and be answer million. to XX% about
