to and It eventful competition as hit and the built confidence. Good for Signature of an idle system intensified thank we Bill. in joining a back-to-back confidence shook the start of Bank, us quarter, Bank morning rate was in search is today. witnessed alternatives. which year Late American went failures you point tipping on rapidly deposit funds Early industry. Thank fundamentally Silicon higher dramatic the Valley and across quarter initially everyone in an yielding the banking in you, the that
into begin moments, I'm of report safety We We base loss stating quarterly concerns to that proved our bank pleased growth a we I'll annualized that grew by but deposits go loan our avoided XX% fourth financial results $XXX any few we or customer or we by $XXX use X% our XXXX. covered in to to performance growing deposits will deposit elected on by and annualized. and as resilient. due deposits took in of borrowings million reduce million wholesale broker deposits the to approximately some Total quarter material
times. franchise a strategy our uncertain with traditional, service remains being strong, the bank confirmation relationships. see full Our of these We another long-term and even of strong as a brand environment current client in diversified, deep
which the ever and some of granularity base, we let growth, as profitability jewel we order think remain run company. point, how Now than AUB detail our mantra me more soundness, our of inform crown priority, and that provide the franchise. the our on To of in of deposit that
on and see end the liquidity end presentation. our the had cover of supplemental sources We Page available XX% the or insured quarter of of of collateralized. XXX% you can At deposits and XX were first either of uninsured to deposits quarter, details non-collateralized this at
XX. few March are as statistics of Here a
approximately balance Our average retail deposit account $XX,XXX. was
XX% XX% is deposit business The retail average at deposit customer around deposits. $XX,XXX. split Our business approximately and was balance portfolio
certain did relationships. use the We cash or of sweeps insured the for balance larger greater ICS of make toward end products deposit quarter
continues the were our a and banks example industry and neither clients as whole, SVB to us of was individually, for service AUB needs explain client's good to relationship our banks. talk the of attention liquidity, a signature why nor a the that the it on all and is desired. differentiate Given approach provide personalized bank representative opportunity of good and individual where discuss to them This from options larger
the that bank all of the the than over the rate deposit on acceleration remixing went subsequent industry for Reflecting on quarter, was in industry us consequential competition was in It sharp and than it higher anticipated. we turmoil. of deposits the more failures
deposits a were rate a of points over quarter. actions linked total competitive. deposits, end non-interest result, further quarter, we to took decline X XX% the As percentage remain Quarter of bearing
for to use as Fully of cycle. taxable XXXX, deposits we decline QX net been the interest of to wholesale appears to year Half which over peak to X.XX% QX for attributed increased the X.X% the following the the in borrowings for could as decline compared optimized have quarter. late declined margin our now points be XX basis for liquidity
liquidated competitive interest X.X% still We during us By to management with under manageable, going and our of X.XX% comparison, to that our variable the half was remain loan do is pressure quarter. cycle, that net approximately securities rate but reduce of some rising we are margin the cost helping high betas through forward net balances QX rate margin remain interest up expect wholesale deposit from year-over-year. borrowings
$XXX bank and selling short that total funding restructuring as which order XX.X% was in sheet and more a funding of we this To by costs holdings securities the reducing executed attractive total and approximates failures, over the our point, million quarter costs reduce liquidity. a available-for-sale bring to before raising with assets, about an securities our level. historical of earn-back viewed that trade balance to We
have additional in comments. to restructuring liquidity. pleased we're his the events, the industry subsequent will Rob on given more details However, have
our year, environment expect into then do year our remains mild we this a today, expectations to in macroeconomic in conditions set next footprint the the in stands let's later results. this for and recession to dig and near-term. macroeconomic solid perhaps quarterly not it Despite or early Now the change rising as
strong year. time are our pipelines and appear markets only down were this to they Our where lending modestly last and from be at healthy
of still materially low any and March from during February continue negative in time credit our markets. will Virginia's unemployment X.X% near-term unchanged trends was shift rate the anticipate last we X.X% unemployment of overall health from and average closely to don't these away national below but period. monitor benign environment, of the the same reported We
have and prone non-owner investor with operators and real Given records on us. exposure, and an regional and to we which been traditionally developers that that more strength cycles. SIRI We local track occupied estate have markets well class netting to bust and Finance historic performed our of a asset deal and and perspective know with focus in our that. has boom commercial some it's stick on specifically share our not generally company office well is I'll
The suburban are remote portfolio buildings. story office large use portfolio rise long-term most Non-Owner totaled medical office diverse. properties category. single We metropolitan high business don't at and X% end. is occupied less large, approximately and than described our performing XX% or our work local under is exposure geographically and is central I likely total leases quarter of comprised exposure which particularly office loan firms. mid-rise Of of highest office, office finance that we tenants national options to consider or hybrid this to $XXX well district among generally quality million the major
expect two rent proactively an we lease eye define problems any this problems years we be We than likely readily see that expirations, every the in each toward every don't office portfolio, Should we distributed book with concerns any portfolio this at of analyzed systemic which rolls believe we borrowers property and this the we reviewed time. any less as develop in years. property and finance our near-term and monitor develop We've be may with to that would manageable.
Turning as our to is expense. leverage, our usual, remain positive we faster growing operating than quarterly revenue on results, that generating focused
regulatory legal were first associated quarter. results a our operating expense, matter. with million for noisy to seasonally during the securities run sale high our line on was quarter loss an of due with Setting aside the the rate adjusted in Our reserve expectations the reserve $X expense legal first and ongoing
growth based but NIM a quarter now than recognize mid-single we for positive growth to will take outlook limit will the detail to operating further low actions digit on operating Last guided leverage higher section. XXXX, Rob then percentage ensure expense to have. for do year. expectation percentage we a his that expense dig operating we the in was expense to Consequently, we single
disclosed, overdraft respect reserve, previously as or With Protection considering an the we Financial of in Consumer is our the against action connection with us to practices. CFPB Bureau legal enforcement certain historical
matter. discussions CFPB During resolved matter. whether the We believe our commenced to CFPB to acceptable the in can we're the discussions actively the be is it engaged best determine and to us in matter on resolve this to terms interest with settle quarter settlement
against from the litigation Any comply able practices at the law. share with is CFPB settlement estimate matter final do with any that given discussions all amount. settlement Consistent applicable discussions. industry current opt-in ongoing not overdraft amount below any of practice, us. accrued the our do the different the successful, matter. loss to current commence the rate timing know believe materially well and overdraft and are our average We such this in our loss That's I'm may We not be connection the with on time could or of if final CFPB
was operating like approximately as which generated earnings are detail a X% will adjusted also I'd of expenses pre-tax X.X% while to up that year-over-year. Now, operating out we growth year-over-year. later. adjusted basis financial quarter, On first point the for Rob adjusted increased here year-over-year highlights non-interest adjusted XX.X% operating increased revenue few a positive pre-provision leverage X.X%
a the is year loan was quarter. certain rising the years, high especially production annualized over QX quarter, of growth record We in followed quarter surprising pause in or to slow, us seasonally Construction, to high it delay not lending Lending following as posted the approximately that was first lowest X.X% some our seasonally in which developers to point and given chose down two uncertainty. a projects. level slow point of the production fourth
to commercial holding this pipelines to a due X% Our growth are and X% real expect in X% reduction At remained ago, healthy pretty balanced. from XXXX. year but loan of we estate, mostly well during up time, down
economic and loom, of imply to inflation, could environment. do moderate take remain now, While change through our footprint as XXXX. rates but that in in pull our persistent we recession the we mode may levels for least suspect better, a and to current we a growth outlook expect interest longer pipeline do threat the at in may higher We recognize opportunities the
XX%. production of from utilization relatively in new-to-bank was pre-pandemic than last the this clients. levels at our point fourth XX%, than then line year, which to still below the About XX% approximately more better came this loan flat quarter but XX%. at C&I was quarter quarter first It's of
came development followed loans Our largest up. and C&I production land from existing construction funding by
cancel, or properties. this anticipate delay While slow, by multifamily modest growth driven we and in we've new industrial seen some construction projects, area
real payoffs both estate quarter. year-over-year linked Commercial declined and
As and I've rising long-term sell said to for the markets both to refuse suppressed into rates too good the term activity offers last properties. have CRE year, refinance institutional
Turning net to off by our XX quarter, quarter in predecessor basis annualized memory for our Xenith a originated that credit, this years. first charge offs material first net care of over was was charge majority three we the of The recorded points facility Bank.
note memory complete and of second of experienced care well. currently We the one problems during standalone one facilities the two the having the this sale we are that This selling process financed quarter. with performing to in is expect other and
non-performing quality below shortly Additionally, C&I though systemic do as slightly QX assets a current nonperforming of Despite payoff it's end since million we $X.X remain this, saw inflection asset meaning full a credit received to point of have that which now are we after levels. last benign. been asset a any One-off losses happen year metrics see one. quarter end, in years in yet admittedly our sign saw we we
run We quality charge-offs. confident in pleased at net and in long point are a some to following with expect our We normalization remain continue minimal a quality. asset asset of
expected the Having comes ability and was we it our loss. said confident to uncertainty sum, to opportunity a we respect to the securities reserve environment challenging in that, legal with and and a our challenges, with the in this usual environment. and both see begin year In remain portfolio the remainder noisy positioning navigate opportunity of and unexpected for do as year, quarter
attractive a what stable relationships resilient Atlantic full ago. have quarter looking traditional, and bank a client a good and forward with would as footing, as on to is but thought strong not We're good brand year, deep service Union diversified, and solid and markets. a one we
results I'll over now Rob the to turn Rob? the quarter. call to cover for financial the