and for joining Thank you, I safe hope today us everyone Thanks is listening to well. and Bill. all
managing stated two that since consistent and our we've early distinct significant been March As we're in through I've before, challenges. commentary
interest rate a and come to environment implications pandemic with expected lower associated for its with profitability. all much COVID-XX than everything and company's it of years the second, First the for
evidence those positive taken results in for challenges actions success. address quarter's we've a Union positioning having future and Atlantic far so to impact the distinct This two are
one, We strategic have serve present focused to continue full shareholders valuable we opportunity on for we the keenly great a create this right to despite that and us that the the before the something plan remain and franchise powerful is and our uniquely believe reaching potential of our we challenges. communities
our soundbank operator will mantra growth it profitability will and continue remain served into A Great pandemic. the prudent the brought that and credit conservative by is about the soundness, challenges of highest and priority. of well during and in the the well economic We Recession priority. A to order us during Company serve culture
storm we preferred weather helped Our clients loan and equity capital modifications the in have with the the issuance second quarter. our fortified
second revenue Our of initial rate run the the see priority new of rate can reality environment. the impact expense lower is align to our to you our profitability and actions
from of Virginia and of ahead believe of our for As supplemented by Carolina. through share have market to market the operations us the economic long in share current in our challenges, home organically runway competitors on a our that we growth, side state grow other Maryland larger we dominate takeaway and North
to We a be with be future to also there will continue expect opportunities potential consolidator footprint. our
pandemic our response. on you update first me Let
with closed home from personnel new lobbies of XX% Our branch has and been effective. working pivot non-branch to operating March for having appointments model XX except a
Work you but is Union of given PPP through the to take not for the traffic an to Atlantic people the again to want will and lobbies During builder been that from we Protection of XX, has safety bringing Program going indefinite We're Paycheck for essential closed going customer fully think Virginia in support in home processed, all walk-in piloted brand and reopening social on branch reopened period. back we the remain and statement. October offices all branch that continue rest a lobbies. we distance September, Corporate to and details fine. numbers to I particularly do loans share challenges. our personnel
did think not process our this organized to They hopeful pass did the help. week from good remain have submit with underway finally on that third behalf that for approvals larger We the from great forgive caused PPP to see banks Congress an many count. applications loan We approval first negative during relationships. to our the We We them obtain receive the to process seeking of clients SBA. had to giving up than we're X,XXX so them to XX% that If $XXX,XXX. loans come opportunity clients it's all bipartisan of the we of convert any PPP the last eventually us to full forgiveness bank quarter, automatically started under the of but PPP to proposal new SBA begin. more experiences, will PPP represent a we loans by there's to
We below, more which loans businesses. are XX% $XX,XXX should and count happy our of help to see represents can we and of Congress to the by streamline do forgiveness for think but PPP PPP loans these
differently. to customers bank have Our learned
and our out to set the during appointments options since mortgage seen lobbies customers as quarter We've XX,XXX year. digital branch of usage the have appointment we more channels We opened, substantially increase appointment now than rolled schedule we X. a well. scheduling had to June digital prior are added from the option While
and mobile about XXX% in April. Zelle of year, is For users check example, this up digital XXX% that utilization are up log deposit card since we is ins utilization since start control year-over-year are launched year, up XX% the XX% up the
We to average updates home. updated now and from and Our the all to channel self-service added call personnel of has time the center e-statement volume than XX% before digital wait easier its find opt time higher our crisis, navigation the about is while banking peak center to call from decreased enrollment. The it's online lower than February. call XX% work now make
and We to our on upgrades new the product work omnichannel quarterly to with customer and offerings. releases continue improve projects experience
call in is that of the our of customers enhanced a center having out are a than to able account CRM to take pilot to also expenses. and quarter ready. level, expand busy rather chat Continue small year, offerings and pilot platform our which experience. at our productivity We'll ensure overflow calls that a customers teammates the allow in improves penetration branches. reduce options, of fourth complex the base. select expect current the e-statement order and that continue be to unnecessarily when option [indiscernible] and the business pilot we improve We'll platform well roll commercial clients for with both time enhance to Zoom of the and We'll e-statements efforts more they're our banking solution. experience All customer currently treasury consumer using to in level rightsize branch e-statement our using video continue the notify the and to not should commercial new appointment we day management during parts technology branch the During online customer to XX while client
to expecting of X Turning we a credit; prepared the to category COVID-XX hit economic be hurricane. began as by equivalent
than still severe helping there's and of the but be Federal coupled initially storm as anything in and swirling markets could improve seen we've our faster nature don't stimulus The expected. with unemployment think diverse our we happen. feared the Reserve it While still on we horizon, government an we a is resiliency as accommodative markets expect rate will as
our in state home Here September X.X%. of came unemployment in Virginia, at
continue try our retail. remains exposure outsized clients book same directly most our also have of and to impacted put help metrics, and this solid the loan such mitigating Our and indications through helps possible hotels, of as we while any as to the distancing to risk time in loss. restaurants social don't at by as we place measures all credit By as the many industry's
As total approximately of the under first XXX The a for and or roll loans $XXX a of with of into as our portfolio. loans X.X% we quarter modification of part modification deferrals, balances of of the Friday, payment October during total had October. million XX, were modifications off balance number
total approximately as the April down then loans, and loans of approximately you would billion If is X,XXX exclude from XX% of it was $X.X which be the then XX, PPP This portfolio. of X.X% portfolio. the
the Our XX%. of Nearly modifications matured initial loan peaked of modifications in all will have rounds May in around November.
we clients no needed for That of The September. So are was aggregate those the run us million dollars initial with removed range reflected each from the hotel far, for for of unnecessary We our Friday expired and modification, mods, portfolio middle had have Of days a of noted we we principal of or The XX-day properties initially approximately borrower. we options dollars with mid-quarter informed provided to gone report. approved them in of they update in and so as modifications deferral before we the half third $XX longer an majority the quarter a PPP only of all adjusting with commercial interest million these, loan loans about million after the second last under deferrals modification. loans balance the of subsequently that X% that XXX on deemed balance decided loans. mostly modifications a that's a out X.X% standard our about and in commercial XX were nine XX XX% the $XXX of the of but in a days. were an that of make as the tailored about $XXX hotel modifications modification
to on X, they X to these accompanying and million the of of loans million as October of are industries slides of XXX August for presentation. loans from exposures X outlined $XXX decreased most in and modification limited under XX, Our loans amount on $XXX XXX The segments XX. in numbered for focus are our
coverage hotel portfolio is loan hotels estate consist from excluding The commercial value our of of that within rely $XXX and entirely as of X% portfolio September conventions types. and our or into XX, July. conferences. footprint. August of the comprises limited [indiscernible] total non-resort occupancy loans in We reminder, generally brand, service improved a on PPP to property the saw million primarily best debt going As real and crisis It our don't among the was all loan ratio service our hotel that was portfolio,
whereas a some data, end the improve footprint in seen. the remains Looking of reflection August, or of rates at nature of or rest seasonal the Charlottesville Northern decline of to that saw a was steady and occupancy decline. trend from degree from September summer new Whether saw Harrisonburg remain the Virginia, be
loans segment Our It's the early is Restaurants of granular restaurant was under dining PPP we've of of and XXX excluding of in Since estate total and June XX% been real as outdoor limit. since secured it's $XXX open or balance collateral. XX% by X.X% and September at have XX% million XX. occupancy. X, capped indoor of as patron XX. modification for October About Virginia July
with credit PPP exposure, XX. trade About of collateral total means A of portion X.X% estate is local with exposure modification operators of convenience XX% exposure the the significant to quarter-end, of by trade about of secured is and the segment this retail retail of as PPP. but which single real then auto tenant XX% and October X% as dealers. stores is under loans Our only gas segment loan leases in excluding retail
XX. granular, they've rule Our segment X.X% with a about May. estate still since real on social modification PPP and have Healthcare is October this it's open also only heavily been by segment We of as secured distancing of and
lines no meaningful have energy. exposure airlines, cruise We passenger to or
by you our less to our and Lending was the deferrals than down as million consumer Lending in As quarter-end accounts off during went time. the Club quarter Club has million $X.X current. portfolio for The off. became $XX may XX% balance some continues exposure winding of run modification Payment declined for and been those to portfolio recall, third-party
June informed With we since mitigating XX had while for changes we with Overall, through to this better walk our event we risk QX work our can. and of those the then reserve which in unemployment you all rate details. continue in CECL the quarter the a proactively the outlook have expense than no forecast negative Virginia will and credit normalized with Rob Moody's wherever provision more clients, through
longer the company's expense Moving to the our to the lower reduce rate for expense in actions interest environment on we revenue rate match the COVID-XX our of and back lower reduction mid-September. action on XX% developed expense started into due run to for second the efforts expectations initiatives third our the to network, take in include quarter. We to XX quarter branch them branches These March. of in which reduction consolidation closed about
freeze year branch by put total the place for projects headcount to reduced compared in a and In critical end a addition to of including number hiring positions by the We next at June FTE March. eliminating of and to as consolidation third personnel others, some in positions. we in moving the end we March, quarter of except eliminated X.X% levels
In we're and consultant actions, and other spending, addition leases improving from renegotiating through management to third-party initiatives process several contract reduction contracts reduce overtime, executing automation. such to reengineering tighter and productivity cost vendors concessions these outside robotic and extracting teammate on including price process as labor
remains goal top Our performance the achieve operating of to tier regardless and environment. maintain financial
Our disruption the outlook COVID-XX be that factors areas, and success our in primary in continued operating of the main additional ultimately of will the financial which depend markets. on our one determine will depth flare-ups the against length of
we're than are duration better ago. There be today But we in of We thought some face we uncertainty months depths I continue before, at will be to a a the but seen the better point, mostly along overall way environment mentioned be full upward. to as our this and levels, we would probably economic supports recovery macroeconomic we the trend six in COVID-XX. great this know when return the the is overall projections. that economic evidence seeing but national believe At pre-pandemic in time, performance simply macroeconomic model should what to we footprint may we don't
agencies the spending Department mainly [indiscernible] diverse transportation. to by Federal and small is income fairly out regional with of in fashion assistance government and is As in going with for federal a anchored some of Defense, economies past, it we've only broadly the economy Virginia Virginia education set programs, XX% a government the government. on fraction said unique of
We Commercial expect low about during on annualized lending full third-party to loans. like, and year quarter, in held in if the on loan loan of mortgages declines all by category have a combined PPP offset the growth basis sheet. digits, consumer substantially types single categories residential a X% excluding you grew balance
by of downs a down our sea had trend the below see increased in line XX%, pay to to of XX%. around credit well we're QX, yet the QX of minimal we've that were is utilization continue We course, about Credit with a in resulting change utilization climbing real of normal of on economy, brought the Clearly, now. be during to downturn but losses pandemic, and out the systemic seen. impact
would toward credit We eventual losses obviously, we continue have thought it transition but begun to in to and an happen. QX expect rise that, didn't
losses current predict cannot may estimate in we of certainty, Although best that first materialize half credit with the our is XXXX.
Having losses levels Union. impact its well-positioned We the of pandemic readily to expect works normalized of the time credit on think the economy. nothing after the impact through absorb to causes anything us able above, and see we're COVID-XX of all that this credit of Atlantic but said we way at delayed the at
improvements see creating our efficient to on and a Moving customer performance. goal more remains beyond to credit, company work company our continue as a further experience while the could result. differentiated the base improving to and with We'll make scalable ways expense
things waiting happen, forward. standing we're reorganization said quarter, I by not As to for we're pushing last
to whatever before and While and footprint. teammates, adjust to chaos towards ingraining for and the which rate as effort to focused this plan, lower tier taking to so opportunities, our adjust convinced remain emerge what think maintain they've deliver in environment work capabilities, steps financial how and that both We're We're time, proud strategic strategic us few teammates financial done the coming next we this for company's still our of efficient continue we flexibility our performance. slowly protecting very better working ability to way uncertainty. success took sustainable that for the reality. organic longer performance on us I'm positioning and the crisis confident for and care of I our potential more our ahead decisive risk is remain always operating innovation into future communities, demonstrated mitigation, shift of and their the have and the but I'm to opportunities lies our and to evolving, our industry in at for all new leveraging and otherwise stronger, needed We the to credit rate we agility a longer expense customers give We'll in more midst from returning of will bank. an timelines newfound to actions we shareholders. to top the we sharply the will a normal, weathering match be. so may a storm, structure in to normalized holds environment. we this within culture to operating have the all new We and opportunity. believe our lower environment the reduce adapt long-term in of the learnings this in teammates will customers,
of me convinces story a other in It's franchise. any markets uniquely Bankshares only in dense, a year compact valuable All unlike our great that has happened with Union more. is it's this Atlantic region.
quarter, the right results the assembled performance cover right have even of most trying We Rob scale, financial the the team to high markets over turn call to deliver the the to and Rob. times. for in I'll right the now
