close XXXX today. impressed April joining We closing. new a our X of and came year our X and X, how markets Bankshares was Good Atlantic the acquisition and and thank morning, be well together to us Thank continue you consequential everyone, you, National year excited to with a American Bill. Union. for companies we for as good expanded and were on since
October added on by we announcing proposed Bancorp. excitement Maryland-based And of our Sandy XX, only the to acquisition Spring
as replicated original on bank but acquisition franchise headquartered footprint. Let the access lower proposed join the Maryland expanded will capital. with quarter. never market plan believe in not the perspective our benefit a in and an even be our community benefit will able combined not in be we status will a there the share acquisition on depository convenient to #X franchise to there bank regional me the enhanced offerings, In proposed may with and been product begin also robust be branch market since acquisition customers has more network, believe We our our Mid-Atlantic, Virginia. report regional some share of another, markets depository more and Sandy #X The such bank view, last the with Spring never in only
positioning We we differentiated also finally, benefit believe And it teammates benefit and resources deliver with shareholders capabilities. our performance. believe expanded financial career it opportunities, will by will well our us to
merger applications. our on filing after merger, XX, X of Reserve of status the January As we pleased Bank approvals Federal from the Richmond the were for to receive weeks
of the Financial Bureau Regulation. We Financial the are of in awaiting Maryland approval from Office Virginia Institutions
of X we April each approvals, to year. and shareholder of regulatory remaining closing X on and applicable as stockholder of the conditions, the to this on company's transaction receipt respective other satisfaction close held be at meetings the expect approvals February Assuming special
meetings the underway We've been with well and potential. communities. our teams' customers the our from offer integration remain its to confident we cultural and is compatibility, combined over believe delighted and highly merger planning both our of strategic I Our our merger the Sandy franchise will team logic I've by process attended, the in enthusiasm Spring what
the now the in conditions markets remains I'll a quarter. environment thoughts share favorable our then that few the macroeconomic macroeconomic term. expect to comment The do we and in change footprint, on our on fourth and in not near
the healthy, and strong, AUB North is summed the with mid-single-digit to and Carolina should recently in in annualized markets employment, very pipelines appear We're the confident we most in Our our our we the by governor's is reported state we and attractive to unemployment stable of our state and case, markets in better and Spring our up well X.X% all current largest believe for last market, we expect Maryland Virginia, November will XXXX expansion the a the for economic Maryland in merger, for some is markets Sandy presence X.X% are do by within with rate health good country. unemployment X.X%. saying have that Carolina. average rates and In loan X and in Virginia strong, of states of our believe last economy indicator our X.X% our reported economy the franchise. where and continue increased lending continue agree. North national planned we operate economy the in growth rates imply We from than operate, and of the unemployment the period
quarterly now results. Turning to
few fourth XXXX. and Here quarter are year highlights the financial full a the for
annualized. on approximately be deposits and for quarter to moderate both path loans. growth for growth continue We loan was Point-to-point fourth a X% the
point-to-point growth can of in the Fed cut the you growth comparing half and the elections loan back see rate the quarter to and skewed quarter, the to for following accelerated December. As the average by
to noninterest-bearing approximately at reducing see pattern $XXX typical million. point-to-point growth drop accounts Deposit modestly of balances fourth decreased XX% deposits. It's to even seasonal year-end. X% about Noninterest-bearing a deposits were in quarter-to-quarter, in quarter was more the by than deposit brokered after total approximately a average annualized and transaction
cuts, lower, aggressive deposit decline fairly Federal moving rates the been in the you Reserve cost we've as see can With of from the in rate deposits.
rates we latest believe of depositors, Fed margin net have larger XXXX. able the by interest quarter our of in will we deposit the to reduce were to rate first the additional which cut, benefits than some negotiated more For
compression. since dynamic to We of to normal the quarters, our larger pay overnight we've from have been significantly with past significant overnight longer the operating cash the some cycles. of can In FHLB borrowings do that FHLB borrowings able accounts the contributed the reduced funding mix NIM quarter. of down surplus fluctuations funds in This no during that, we some course quarter's
because net still fewer the asset-sensitive, the that previously none we're mildly cuts and expected than for And AUB's perhaps Fed have expectation well for may margin. should speaking margin, bodes positive a of net be us, rate interest or
C&I was ample refinances the downs news modest payoffs XX% loan saw for estate increased very The production and our in to is in Our commercial among That's view top which loan commercial both growth. demand overcome in of or permanent is to our demonstrating and estate. and good into that allow growth payoffs, real CRE footprint, and see. base, seen before quarter, for in encouraging liquidity government the markets. quarter-over-quarter, quarterly highest last estate we real enough sales commercial elevated total runoff on real elevated spike and that that larger contracting the payoffs markets pay we've especially pandemic. loan there's We the client We since businesses predicted and
existing pleased to X/X C&I quarter quarter from increase the in and client quarter was construction estate slightly footprint. base. X/X last new the favor XX% year's this in commercial relatively nearly fourth and commercial prior third estate, coming our increased production the grow quarter, we quarter. of from as weighted to utilization an over see continue from another land Production real development from clients, production markets about healthy our clients in with of to real C&I we consecutive which We fourth C&I. sign the view continued in about Loan were demonstrating production and for
at details borrowing provision increase will nonperforming at quarter, approximately losses credit in individual apparent were X.XX% identified low million loan a C&I remained involving for for results, around by on of the loans quarterly This by loan the NPAs impacted earnings an driven was which will that the though specific a but asset-based Rob million $XX.X I misrepresentation negatively higher fourth accounted quarter the a provide reserve base, for of note over investment. assets primarily its year-end. held $XX.X
event, for the atypical credit X net solid, this from points year. Aside charge-offs points basis only quarter X this of basis remains and with
be in quarter to negligible we losses I seen do years have consider and over past few do for one-off have the sustainable. not we years, every We mentioned X confident the about have expect occasional normalization long to As quality historically is our not We size low generally we we or but quarter. of of believe losses, of this remain saw type inevitable. that the our run losses some asset
out and we're American building In our reserve. franchise the quarter financial benefits specific National which by this unfortunately were sum, the clouded combination, of realizing unique credit the
outlook, has are time, uncertainty to positioned beyond. believe continue, some economic well we but case expect in XXXX we optimistic successful As the and and been for for we're our we a
investing the transformation upon opportunity as growth in North largest long strategic acquisition Meanwhile, from Carolina regional Sandy Virginia, bank We Spring. bank than using now the are closing to headquartered be in excited proposed lower to community announced have our to and Virginia ever more what in sought continuing a them. franchise our remain our will is Mid-Atlantic a regional guidepost. build Union of markets, we're headquartered bank Atlantic the story and our we have largest the about of in we plan
markets. a full-service and a ever, than in attractive Atlantic diversified, more Now and strong dense, that stable traditional relationships valuable client uniquely deep with brand is Union franchise bank is
value believe to also I'll the the over turn We Rob results cover unmatched for have the we quarter. this now to Rob? scarcity call region. financial in
