and Kevin, everyone. good Thanks, morning,
XXXX, comparisons I prior the of As through walk financial with be statement. first I'll of all our our quarter period will unless income the with begin results, otherwise and noted,
As strong grow previously assets to income. inflows utilize net earning and current to is our interest stated, our priority operating in support deposit the environment
$X.X from basis. a linked as result by was last which by of $XXX,XXX Excluding our net Accretion income PPP declined higher on we quarter. lower impact, income, income basis, execution last our the reflect to strategy, net you quarter income our decreased GAAP interest $X.X told second on just On a interest million PPP quarter. which expect fee generated quarter in million growth a results this
our annualized. of income growth attributable loans by impact The securities investment net was interest the in during PPP, average increase X.X% the Excluding to increased or both X.X% and quarter.
year. more see on PPP the we even operating improvement in to would expect income, basis, of Looking income the heading into half excluding an net interest ahead second
rates. excluding the robust the at second in toward interest from quarter. added in lower interest income quarter an investment X.XX% the of growth investments on less our in first reflect lower at securities impact XX about full essentially unchanged an XX yields, challenge. from PPP to yield This average continues be impacts, basis and decline half a then reported investment securities made quarter On points. to new shift rates yield points decreased At to basis loan PPP margin the our was during net primarily the the average a was the were and our average first at which of mix derived X.XX%, the of With continued second loans, a net deposits, quarter X.XX% quarter. basis, due margin The securities of a
to spread an between our we narrow, new book forward. the yield to adjustment yield dealer to points carry average not production reserve, Although that's from auto our continues to a quarter basis and benefit few indirect this which added expected our did
XX quarter. non-interest cost points our deposits, the bearing points basis by inflow With declined basis of X funds continued to the second in of total
to duration end first from X of the at can you securities Page As years XX portfolio shortened investor of of the the see was X.X the presentation, quarter. the on years
we've to minimize increase the and earnings designed the had investment end of to In $XXX portfolio, the to ratios to This cash second impact size our of risk the effective held-to-maturity our capital million position, portion our rise. downside moved tangible actions approximately power years. at potential we've portfolio. eliminating which to quarter With the begin and of estimated significant a increase of the puts duration of X.XX the of we at rates few value June, early should a book the the taken has securities effect the
live simultaneously treasury initiated bonds of when our yielding begin Additionally, $XXX effective million swap a forward in original XX, X-year X yield mid-June, then the XX we basis receiving starting, goes at addition XXXX. million pay-fixed purchased and year in -year points funds X.XX%. June We'll $XXX swap to on X
actions, asset deployment while our execute these capital to of of protecting sensitivity. we've our targeted been able liquidity and our result a As maintaining excess strategy level
the decreased we $X.X quarter-over-quarter was non-interest $XX.X last recovery that by quarter. recorded million. This million servicing to mortgage Our due $X.X income million rights impairment to
recovery, business the our the income to in to revenue came our mortgage an and non-interest end primarily of quarter-over-quarter production Excluding program increased. banking sold higher the retention increased percentage due production-related operating as
on this see Page can deck. of the You XX investor
value of of last and volume. as expect look higher for rights. economic our low services In to continues strong the to year be activity GAAP quarter's the servicing down we with guide, card payment to mortgage result year-over-year, business fair second mid-single-digits credit total non-interest to our and our outperform of continue increased addition, full-year any half impact expectations a the revenue excluding a to additional income Consistent
expect the year. from half of expense. into than during expenses rate approximately be still run non-interest not $XXX,XXX do expenses added higher We forward the an last for expenses did experience X% note, quarter. increase about to $X approximately that the of total quarter, of the had quarter, we GAAP prior anticipate to carrying we year our the the those full this for second Moving Of year. Despite we million
end of to the sheet, prior Moving from balance in of decline $XXX loans our quarter net to $XX the PPP due the approximately for investment held decreased loans million million. a
real loans the PPP loans the of Excluding Most total inventory shortages Consumer ongoing construction, from to of commercial in residential up or and portfolio. X% were million and for estate prior quarter and our payoff held higher-than-normal $XXX annualized. estate, non-PPP-related deferred real lag impacting growth loans investment indirect continue commercial to of in the loans. came due some fees, about end levels
million had PPP $XXX loan with on our million deferred As fees. approximately of June $XX.X XX, sheet balance of we associated loans of
as Relative our the side, of total quality moving of non-performing payoffs problem our of our saw commercial And the $XX coming again, on prior criticized growth million the million, criticized Ag $X.X we categories. $X $XXX the loans. decreases of deposits. and loans from end real assets as of asset the other declined and declined liability upgrades million noninterest-bearing quarter asset million million $XXX well quarter, deposits declined with result end in non-performing several our portfolios in a to in the On our as estate to first all loans increased
loan $X.X the of to economic the charge-offs asset levels losses with continue attributable of in the this and growth requirement X million of forecast, net quarter. be reserves credit the following improved And quality then just annualized representing XXXX, losses our basis Our portfolio low in very the during offset points the portfolio to in quarter. average provision in loans build improving low significant
I'll a not the end As X.XX% are the quarter. call percentage X.XX% held back June as XX. a for unchanged investment allowance that, of expense loans at result, excluded, from provision kept record represented June we of XX quarter. at any the Kevin. at did to prior When allowance loans in the over PPP our This With our turn
