Thanks, Marty. Good morning, everyone.
commentary October The XX areas key the a average up $XX.X interest was interest-earning X of interest of on X.XX%, income the was the expected. result public of up unexpected commercial compared of decrease few higher in points. remaining quarter Net with loan net funds impacted result This NIM with provide of higher decrease as XXXX. expansion yield average was rate our to was points basis to assets primarily the was funds with for balances average coupled comparisons million, XX result from a points. on assets, primarily X by cut impact of expansion. $XXX,XXX quarter combined the third NIM prepayments. of a basis The margin I’ll linked-quarter. basis linked-quarter. X.XX%, interest-earning was a NIM basis of Cost that as points, basis positively positively points X was deposit the quarter the cost of the impacted the
to Allowance compared with but million. the was expectations. losses up charge-offs quarter were Nonperforming our Otherwise, losses $XXX,XXX quarter, commercial in million our $X.X from loans and nonperforming that the of total third has XXX% loans partial loan quarter. for charge-offs, for quality $X.X decrease at the in compared a points loan ratios. we had million. by charge-off was points $X.X the X/XX/XXXX. quarter-end, primarily second X $X quarter asset asset related from In experience strong, down of commercial losses evidenced Net nonperforming one to XXX% we the was historical million at and as a the million, line a million loan. allowance to to in due remained last business $X.X loans were quality million XX quarter, had level $X.X in quarter, downgraded quarter's in $X.X to for basis basis was quarter, credit last $X.X loans, Provision our fourth and of third the In million loan
the was in down loss quarter. primarily income the drivers due insurance first, accounts. and commercial of was million down The $X.X to $XXX,XXX, key Noninterest seasonality were,
a recorded tax as a incurred expense. the income loss a $XXX,XXX. net benefit as these associated on with of tax investments below reminder, the reduction of tax line, is investments we Second, credit And credit
totaling recall project increase third and $X.X will small $X.X and expense by $XXX,XXX, an of the three loss projects, $XX,XXX of benefited the and investment another generating an to income connection or of securities These quarter. in Noninterest the the $XX.X offset factors we banking from this in expense promotion and you reinvestment, consulting swap in Bank's platform, million, sale was to from $XXX,XXX to was of was quarter in to were quarter. of advisory services strong up a million, from an enterprise increase Next, branding contributors current instruments with fees due that the related compared $XXX,XXX. standardization largest expenses of The the timing million expense primarily increase derivative partially up because $XXX,XXX quarter professional and were campaign. advertising gains, digital third
in effective in was tax expense investments and the positively to in rate Expense tax $X.X the quarter, expense. state Income of million five $XXX,XXX related a placed in tax service reduction X.X%. was an impacted credit benefits representing federal resulting quarter, tax during only by
and leverage Our efficiency positive continued growth resulted revenue focus in operating XXXX. on for
in a spend areas. outlook some now XXXX few to our like I’d providing minutes key for
in our production portfolio expect total We loan single residential the to growth with loan driving low digit and growth. mid commercial
XX% by indirect with low We non-public comprise anticipate growth mid digital between end. the loans percentage banking with in a the portfolio. growth single year and single initiative. deposits indirect exceed We by expect digit digit production to assisted to of plan mid XX% total We for consumer in to runoff continue to decrease
growth in be deposit borrowings form of will capacity up of We and also the improve FHLB. dependent with supplement the us collateral, less sweep to liquidity brokered that allow free borrowing to unused plan program a on core deposit FHLB
are we in slight quarter NIM assuming interest be fourth we what margin will a are in spot resulting environment, rate. X.XX%, anticipating to from currently of rate quarterly a run XXXX net the expansion X.XX% full-year of interest In
in Our NIM can the our are impact public quarters a funding In environment, average rate public its of due lower. interest mix. given cost our spot seasonal funds where to fluctuate higher deposits from is inflows, and of on deposit seasonality quarter-to-quarter balances our
interest in the earning We with mix also year our asset loan improves as the growth half forecast the portfolio. higher in NIM a of latter
As guidance the of the rates dependent a level of highly our shape curve. is on both and interest NIM the caveat,
income, project We noninterest single excluding digit mid gains in also investment securities. on growth
discussed. the We debit banking expect to initiative by digital income largest noninterest income the be growth and previously supported deposits card with service charges on drivers of this
previously initiatives in in mid with to the begin expected half half two We is the expense discussed. in by year. anticipated Non-interest initiatives are associated the elevated expense. in Benefits of single are the the be to non-interest first targeting major increase an digit range the year back of these
Additionally, XXXX. year FDIC the utilized in a were half as of insurance FDIC is full premiums insurance second credits of anticipated
We quarter in each process quarter noninterest our implemented within quarterly in $XX range anticipate with improvement course by the over to followed first reductions initiatives in expense per of $XX quarter, highest expenses being million a the the are year. million of business phases subsequent as
expenses the We in to expenses, efficiency marketing variability for our fourth also XX%. efficiency We anticipate expect to to compensation, and healthcare incentive range timing be between of XX% continue ratio will XX% year costs. a to ratio and within the of quarter a with see that quarterly typical full XX% due
of be higher the expenses. to efficiency the in We half year, given ratio of the first expect timing our
a to placed of in service We the XX%, of impact tax expect tax which of effective in within will range the XXXX. includes amortization credit be rate the that investments XX%
in changes as conditions. In opportunities currently of in our control, provision in $X We Under for assume economic on and continued per our of will economic more quarter, factors. of approximately expense continue to economic would depending well XXXX taking will focus to based current opportunities. loan assumptions any be and by changes expect advantage expense million CECL, be investment portfolio. the operating It due for our rate other provision year-over-year on to investment credit to positive positively resulting the does guidance tax our $X credit We volatility, variety and subject charge-offs conditions. This provision as effective leverage. outlook on impacted changes based evaluate revenue tax a is reflects losses million conclusion, forecast, further on not growth in
update on CECL. projections Continuing the CECL discussion, of an let provide and me for implementation status our the
loans, impact preliminary team estimates of we process commitments, evaluated progress unfunded the implementation, securities. and potential still While in are individually qualitative of the validating finalizing fourth made our the significant investment include quarter. factors in Current and
implementation current updated the time, our an and could that on January a this economic losses. and our in increase As in credit to CECL for estimate point X, based of XXXX XX% of result analysis, conditions we XX% in projections at result of reserve
Given $X.X million cumulative effect these ranges, anticipate an would and between million. earnings would be adjustment, of reduction to we a after-tax which retained $X.X
still finalization execution internal we are and and of Just are assumptions. to upon These disclosures finalizing processes policies, our reiterate, estimates change of subject control to procedures other framework. our controls,
said, With now back for I'll remarks. that the to closing turn call Marty
