Thanks, Kevin, everyone. morning, and good
and all As income our results, with the unless otherwise financial quarter I walk through comparisons of our the with fourth will statement. noted, prior period of be begin XXXX, I'll
Our first income quarter, of million. net the $XXX.X million a in was interest decrease $X.X
more X offset in basis increase a increased by yield basis funding on Our points, our costs. was point XX than interesting-bearing assets which
Additionally, there was X less in the quarter. first accrual day
quarter, This reduced also our borrowings XX the in of the borrowings higher period. partially level average by costs basis repositioned borrowing mix points a which from in impact offset we noted, our Kevin quarter. the the As prior of
net In to interest first to net the basis interest our points quarter, Turning an margin. FTE basis decreased on margin X.XX%. our X
in X.XX%, Excluding as was XX the our softened in margin purchase accounting accretion, interest our later expected. the prior increase deposits we as reduction the on period a net saw margin basis quarter. Pressure quarter seasonally point from
As we margin expand believe in the quarter. and quarter second in first should bottomed Kevin mentioned, our the
under million in and million of $XXX quarter construction In about commitments remain. portfolio, commercial just first our of the $XXX construction up loans funded
drag We expect lessen. pace and this in of on decelerate back loan the yields half to of the funding the XXXX to
pressure. costs out eases margin interest-bearing the of moderation slowing deposit and shift in noninterest-bearing the deposits Additionally, further mix our
down even X, our included rate of cut reduction can is in investor the reiterate This in guidance be last to in gave interest with quarter. expectations guidance that our So our summary our presentation. income the found we we net
million period, quarter was of assets expectations. our from Noninterest income with again million on gain from was disposition of fourth the the the was line in decline the first quarter. million prior prior The $XX driven in $X.X by a decrease in which quarter, a the $X.X
time. lines over revenues in add to with which make us such Our positions Treasury we our of as Services customers generally continue our into well business line expectations, investments performed increase areas and business, and to fee-based
OREO were There were parts and a for expense. $X.X million. $X.X moving decrease These accrual accrual report FDIC few which included well that claims. total quarter, number, offset reported $X.X incentive We a noninterest million prior to expenses. in a were of pleased medical our million the expenses special in by of million million lower of year $XXX.X a as as this reversal to Moving $X assessment noninterest
quarter's guidance expense year This of that will our quarter into consideration the performance the we the from number very this reduced higher slightly expect than are anticipating That in we takes pleased have marginally remainder we with While expenses discipline lower be maintain our this for quarter performance while expense while the we reported positive and was forward. modestly. what quarterly area, going said, figure. our the quarter this this than
our to lines, million Moving expected which million. first quarter, down $XX.X in Loan primarily were balances balance sheet. the to declines declined in due seasonal $XX.X agricultural the
million positive construction experienced estate out $XXX.X portfolio real declined million. our and portfolio. real commercial the also We $XXX.X the construction of portfolio migration the increased commercial estate The stabilized quarter, into as moved during projects portfolio
deposits On the million. liability quarter the high-cost mentioned in side, leave the already totaling made municipal million sheet. the decision $XXX.X Kevin to to total $XXX deposits balance we declined X fully collateralized allow
seasonal about Excluding this declines deposits declined X.X% decline, our due in portfolio. normal to quarter-over-quarter business total
in second quarter. the increases business and seasonality third assumptions include into deposits the of Our end toward the
to to from March deposits We expect XX year-end. increase
and retain our As deposits noninterest-bearing we account. a stabilizing is investor of our we business mix seem in the and to steady consumer noted deck, base granular, be deposit
quality. asset to Moving
basis reduction provision This driven of $X.X in funded off-balance loans. Our million release a a million. million $X.X comprised provision sheet with in the of by release totaled of provision Net $X.X was were first $X quarter. continued points a charge-offs XX commitments. of or unfunded unfunded million The
We upgrades nonaccrual. Nonperforming nonperforming during relationship million or increased decreased to and movement generally loan of driven payoffs. C&I the within loans a positive $XX.X which $XX.X loans, million both saw loans, or primarily $XX.X Criticized million the by X.X%, trends XX.X% to portfolio due quarter. the include
who meaningful performance. We have actions with is stabilize borrower working been to taking this closely
We are a cautiously positive optimistic resolution. about
We a both real in our type portfolio. also presentation is related granular This estate portfolio investor diversified added geography. and our to and by property disclosure commercial
well view exercise higher can we expect that recent it reinforced is that cash Our testing and flow should most performance. stable support stress our underwritten, has rates
our a our and capital This, continue our accretion in loans, sheet continued drove quarter. off-balance earnings in a in ratios support reduction the in strong to reduction commitments dividend. with modest Overall, coupled
improved basis points ratio to CETX XX.XX%. Our XX
With that, I'll turn Kevin? Kevin. the call back to
