David, and afternoon, you, good Thank everyone.
& that activity or sale J. of XXXX to As TEA. business the Arthur on comparative XX, relating Agency period to includes We business the Gallagher XXXX. Company completed November a the Evans reminder,
$X.XX of per share, of was year's year-over-year quarter, the a interest income, of million basis higher on $X.XX growth diluted drivers lower were the net second compared by sequential delivered from primary we change When was the of which and income the impact XX% TEA sale. interest $X.X and lower noninterest largely For driven quarter recent earnings share. This earnings up or per last expenses. $X.X the net million, with
of million expense due actions given end reflected pressure the the for the Year-over-year, an from loans higher quarter balance increase first higher was pricing, quarter. the change sheet Net interest on interest first of accelerated interest to net of competitive average deposit $X.X and of income income which at the most $XX.X linked XXXX. to million our strengthen in
basis down from quarter. came X Second at quarter linked net points interest margin X.XX%, the in
While there to mix. from expectations of asset favorable was we a end remarks. will expectations optimizing our our some at strategic contraction, the benefited talk as NIM my it I focus to was on margin
The embedded wealth services. by improving as for was and from of was TEA year-over-year line. sale is in from credit insurance quarter, quarter employee income $XXX,XXX fee well. the in is first noninterest $XXX,XXX growth in that salaries prepayment the resulting in to income to reflected revenue That in as currently losses and due item factors. provision the fees loan lower partially decrease slower recent benefits, by as quarter as decrease as Total sequential were management improved in our XXXX largely production and service up well expenses the line driven higher performance was which offset well down of due rates, economic the noninterest fee The X%. The
costs, into well, did the FICO resets unemployment While higher the the been our seasonal quarter linked included which we on annual HSA annual have expenses and reflect payment accounts. managing and insurance
noninterest the was the of expenses the $X.X year-over-year as change of sale again, TEA decreased million. driver Once
flat decrease $XXX million XXXX year basis, expense the expenses quarter, of on between XX%. bank-only at were though linked the excluding Total or the a for increased deposits expectation X% is end XXXX a and X%. Our TEA's year-to-date
with $XX of category reflected balance increases our deposits rates, commercial favorable the municipal disclosed, each strategically As major sheet support million strengthened deposits. both retail quarter, we seasonal the across during previously broker first deposit increase perspective, at inflows in From saw a we were and product of adding also we deposits. from
quarter the $XX.X as quarter. were up million million Total originations of net in the loans first net commercial with were $XX.X compared X.X% originations in
of following but quarters high-quality growth $XX increases were with being some both Total We was year-over-year, CRE muted million. up in and in or of $XX The million continue loans mix are in in quarter, million C&I, line opportunities to weighted and up up seeing CRE are be C&I. underwriting performance. usage selective in with of number C&I towards X% $XX a we borrowers the finding decisions
quarter at is million at $XXX David end. and the As current indicated, pipeline stands strong
current our position loan supports liquidity mid-single commercial XXXX. digits to in that be foundation growth of expect We the expected
to maintain We continue to management. risk a credit disciplined approach
in to classification to was for see loans, a change one that a did decline moved due nonperforming we While this ORE. was loan sequential
the a plus and no we a borrower high-quality expected side, a with place sound in was property, the this with agreement On deal have once signed losses purchase closes.
Criticized first with of loans were compared $XX quarter end million $XX at end million quarter. the at the
balancing the evolving are include We have market continue to managing profitability and our ability navigate dynamics. confident pricing our liquidity to deposit in with been to strategy successful in
rates, stabilizing rate which While that continues of rise, NIM the to of cost competition some increase see instances, we a provides lowering the outlook. decelerating rapidly in funding
the interest-bearing in costs increases transactional quarter, For to to portfolio CD expect balances reprice. continues to clients the modest and from accounts move third we as continue accounts
a we points basis X.XX% XXXX. impacts, anticipate to those Given of our approximately come in few quarter the third down NIM to
As slowly year. improve fourth point we continue in third and the quarter and start to to this be to low funding in the anticipate the costs see stabilize, margins quarter next cycle
operator, open the now With for would line we that, like questions. to
