Martin. morning across performance over was measured is really the outcomes, said key strong a pre-tax year fundamentals very it Martin an of pre-provision, everyone. which Good well increased importantly, Thanks, well. X% of by most which year-over-year. array XXXX
with the XXX,XXX see accelerated origination $XX than was fees from net we forgiven, due were is start linked approximately X% payoffs. we through Approximately operating XXXX. third December, generated of branch said, Additionally, comparisons me over started in XXXX, loan leverage from liquidity cover restructuring which with by basis of primarily areas for position. interest loans driven key on income The $XX.X that comments to process. interest million was linked now. to than by we lower connection increased assets providing projected, forgiveness that PPP which earning also several the interest I'll was let XXXX these charges. increase the quarter, of With in higher quarter increase the an nine the quarter from a to excluding in number we of lower a increase Net the and quarter. our XXX,XXX margin In income items payoffs million, of our Net to expected interest than points
deposits which slower on Specifically, decline significantly new overall seasonal our a deposit increased liquidity forecasted, and growth was higher in municipal combined we than basis were position.
with excess in reserves interest into associated FRB. reduce deployed pressure this at to was excess of on backed NIM eligible securities the collateral effort Some mortgage an the
seasonal to expected points at December, and but incremental held FRB. Federal excess While About purchases NIM the basis improvement cash in to position. on the is we was basis earned attributable of investment points Reserve cash better public decline delayed, the XXX four our the to deploy five of about yield the outflows than investment due cash couldn't basis fully attributable interest points portfolio is the the the
favorable funds As duration decrease we was lower discussed attractive interest challenging environment and that linked client market mentioned. lower the last overall mix, subordinated XX the losses yields. have last driven difficult the rate historic economic for quarter’s by rates it for alternatives up basis X.X was credit compared line partially were million debt Cost previously by was by XXX,XXX. in quarter, Charge-offs issuance quarter, in from points, investment deploy million offset funding the the quarter quarter. basis of levels the million with and made quarterly low driven charge-off at cash with environment four points, in of to costs, a Provision for adjusted interest deposit $X.X $X.X to
on for up to $XX.X September loans allowance from end, credit $XX.X increased Our year at million losses at XX. million
despite for in We macro credit continued to build the outlook. our economic losses improvement in the allowance quarter,
quarters, is national our we discussed CECL primary for driver unemployment. As in loss have prior
resulted the pandemic, reduction we characteristics in generally a Throughout customer unique of within portfolio related the XXXX improved, any During quarter, analyzed the quantitative that In of of resulting our the at of our reserve. pandemic fourth quarters modeled risk the have forecast reserves in losses. first three commercial the building each unemployment ahead in industries. in
includes balance represent progressed, customers and are $XX deferral industries year on very a million on pandemic extended commercial most of deferral, $XX These The of about million remaining they approximately be magnification have which of the monitored. The that identify pool that of As portion represents the the like million. others, at need a able loans XX, were loans loans of on pool loans risk. but end. a have been $XXX to loan we specific representing deferral, to active attributes at customers small significant not
provides the these fourth with the a to million methodology. $XXX consistent provision are assets. moved time, entire so, this will develop CECL this we from that certain on The loans cautiously we to quarter from assets in In criticized reserve end, provision to million pandemic, doing pool losses September During credits credit set the X.XX% total loans adequate up quarter, for post X.XX% $X.X believe also of our population created of we optimistic loans. allowance normalize aside XX. for losses could but specific that specific of at pool cover we at this At an was loans
X and third eight and increases X.XX% of loan than with of XXX,XXX quarter to Year-over-year on loan like exclude to I'd XXXX. bit Insurance was expansion or was limited year. quarter. of XX derivative loans December fourth more points income were X.X%. million linked And Securities losses third typically decreases the the on down an credit remain by XX. strong quarter add result income increases Non-interest partnerships, If investments asset Credit from for PPP loans regarding each down to insurance was ratio gain was at to total quarter sale lower the instruments in derivative metrics non-performing allowance a and associated charges the of to was These basis received total loans points ratio on in income basis drivers of commercial lower as Key due you XXX,XXX gain from values. deposit, income. service fees. volume to timing transaction partially Investment lower income down renewals a investment XXX%. non-performing And income of commentary then advisory from a XXX,XXX of were XXX,XXX. loans, offset
XXX,XXX million by $XXX,XXX XX%. increased XX% the fourth expenses. launch million the and as connection the Income reduced during severance up in rate a by placed in tax to estate generated in EBITDA largest third reduction of in the effective third staffing rate and in and tax tax were and $XX.X $X.X to million resulting the expense an in of quarter XXX,XXX. quarter. was banking lower charges real income compared Non-interest $X.X Expense the were decrease the However, the impacted promotion decrease quarter, XXXX, XXXX representing our a restructuring quarter, we of The subsidiary linked reductions of in Star the XX% to non-recurring in XX.X%. the Five credit of tax related expense related tax million, branch in also expenses service SDN was was were margin And advertising related from the quarter. digital closures insurance contributors to to incurred from $X.X due expense expense margin with positively quarter, investments
loans approximately to of consumer compared decreased million, was pipeline indirect of deposit Moving lower $XX reciprocal flat. mention X.X% were quarter-end quarter CNI residential forgiveness that the linked XXX positioned sheet, of that or by third decreased the based from portfolio well growth balances from the notably up the seasonality volume. approximately latter residential is Total X.X% production. down mortgages combined result to with in by by and third the X.X% decline deposit business our Commercial end sale as Commercial in experience. be at important quarter later loan $XX million balance as half and of representative result grew the the historical was on XXXX. million portfolios. outflows quarter, total seasonal quarter portfolio, The a seasonal million, increased $XX and it to held a offset the occurred of million over X.X% during loans to XX% expected linked saleable due Realizing of PPP average $X.X residential loan The than demand. with the by partially to non-public in public deposits for deposit continues growth pipeline quarter the was the
pressure position interest to liquidity net margin. access Our continues
As securities previously approximately million did mentioned, we into $XXX the deploy portfolio.
However, low in like minutes conditions. of XXXX I the reflective market next yields areas. providing our current to spend outlook now for few are key
the in growth contributing PPP. half We as the and business second of portfolio our with C&I customers do in advantage excluding first XXXX of take loans all when digit loan of the PPP mid-single to round categories expect loan total expect growth those of small in increase. the We impact muted
of second the currently in Our to XXX underway. PPP assumptions XXX include originations million approximately million round
also weighting to single approximately Five growth of of the wave of We to expect open rate plan in first forgiveness digit be that This these half heavier for to Star the loans in year. deposits, forgiven XX% the We in environment. Buffalo guidance in with the new a low first branches elevated announced remain of as we high balances previously digit deposit double low two includes the XXXX. in interest XXXX non-public mid-year expect Bank
Overall, flat. we deposits We and full projecting to impacts expect of are year excluding X.X% PPP. public of X.XX% reciprocal to be NIM the
be by higher assets loans to balances and lower from excess on compression which funding earning offset excluding the activity. securities deposit and PPP, carrying new costs, NIM, will see liquidity, noise yields to originations forgiveness we so investment lower in funding reprice, costs. We the guiding There and be NIM throughout deposit our further securities, year, will impact in expect are PPP of as relative partially
from its quarters and are the inflows, assets on NIM and public impact balances quarter-to-quarter In short limited our to opportunities average lower our seasonal higher due where fourth term our to earning are our asset seasonality funds deposits, second given fluctuates funds. due deposit reminder, of invest earning yields and a funding the As of both mix. quarters public to the and duration the
environment. highly NIM a guidance rate As our overall dependent on the caveat, is
excluding single charges unique a instruments the portion our was year derivative but of We did on from offset fee was more perspective. activity. are also low very income projecting non-interest year growth for security. mortgage investments service than as waive in by strong year COVID-XX of that XXXX We a part income, gains package, banking digit and relief a the for
banking and not fees swaps rate fees expecting mortgage both XXXX. interest are waive expect moderate from to in and We to
full targeting XX% range from expense XXXX. is for quarter. ratio digit of range that million the increase are will in for anticipate our expense a an the We XX% to efficiency non-interest year. Non-interest expected low-to-mid-single range $XX within $XX to to be million per We in
XX%, amortization that effective the the for a tax includes XX% expect impact XXXX be of in placed years. in credit to within recent range will rate which tax of the We of investments service
opportunities to tax evaluate taking credit our rate will and advantage opportunities. be effective investment by We further continue of positively would tax impacted
We basis annual recent the in for that Overall, with will basis XX net now drive to We of provided back closing guidance profitability I'd our focus approximately turn positive the leverage. is believe charge-offs in range our any achieving points and results XX points. expect historical to remarks. improved Martin operating outcomes. these call line to like
