Slides you, Thank and X X financial X, recent our summary Archie, of and a results. good morning, everyone. most provide
highlighted The third a quarter tangible margin earnings, that interest increase was value. expectations by a strong our in XX% and net exceeded book
very to combined the points Our deposit X quarter from the remains in increase The in net margin at modest declined yields favorable basis were increase as in offset we quarter, flat a funding shift second prior moderated in comparison to the that pleased quarters. cost of mix with X.XX%. interest deposits.
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annualized recent However, other continues portfolios. to Average deposit the basis. higher deposit to rate during Loan coming payoffs shift the quarter cuts. leasing in mortgage we partially deposits. higher contraction books as modest mix was expect offset the on increased was and cost X.X% an growth due growth million and slightly Overall, in by or periods towards $XXX the margin balances
total However, we deposit strategically our on of maintained XX% maintaining focused in are and noninterest-bearing accounts balances. balances
income to statement. the Turning
to wealth fee Noninterest foundation. leasing increased income. and quarter to from solid, expenses and our was led Third slightly income expenses the due linked higher management by foreign exchange, a supplemental quarter leasing contribution
more initiative benefits we impact in is to efficiency the further meaningful, expect However, periods. the from coming our see becoming
securities. are quarterly tax performance. $X.X a losses was we share per our to that book loans. quarter.
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Slide period, $X.XX million from severance X expectations. and increased X both $XX.X provision million driven expense by sales earnings Annualized ratios adjusted ACL basis the while the tangible securities was increased period, were of acquisition, a during reconciles in asset during costs. X.XX% million and XX to $XX.X regulatory value which of targets. deferred XX.X% ratio noninterest on items adjustments standpoint, speeds.
Overall From are common points. were selling The $X were the million to income GAAP highlighting percentage basis equity securities for relatively X or Noninterest flat resulted the impairment and our that believe in This of in line the net during term. trends the to impact as prepayment Our were million
Slide of a of on common earnings pretax these depicted assets ROA XX% equate As a return on to pre-provision average equity return of X.XX%, and X, X%. adjusted average tangible on a
Turning to declined Net Slides X quarter from at interest and points X X.XX%. margin basis XX. the linked
relatively slight to were flat quarter flat were yield declined portfolio also the and shift offset yields quarter yields a loan increase to Funding point basis favorable the X prior compared mix relatively as as the a on point. linked costs basis compared deposit Asset investment costs. increased in mostly X the
the compared X basis deposits points Our cost increased quarter. linked to of
significantly can a the the essentially periods borrowing month-to-month our flat see bottom as of from sources of capacity. and liquidity previous and the quarter.
Slide end on that growth outlines right However, you by basis declined on was of various chart, XX pace
X% and loan We the XX mix an every in economic on expected continue illustrates to have quarter. sheet current with increased environment.
Slide almost the we believe balance basis our to to linked compared modest portfolio. manage balance required flexibility the through balances annualized the Loan growth changes
to well $XX as office the our average mix portfolio loan quarters, X% average our capacity deposit about during and metrics which this public in well see total, is deterioration [Slide to to quarter. accounts. interest balance prepayments as during quarter, higher-cost to detail XX] office an increase nonaccrual in and million comparison portfolio and sufficiently savings on the Similar driven balances illustrates approximately growth any well progression million.
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Slide the period.
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to the remain borrowing of sufficient concentration balances.
Slide $X.X XX% quarters. believe XX billion. of our fee bottom noninterest having comfortable adjusted Wealth that solid quarter uninsured highlights were total you $XX event this Total stress quarter. as deposits. was Management million the equates any to deposits with respond our Bannockburn, deposit provides income or our On This We slide, see million income our can larger our flexibility the $XX to right and Summit adjusted during and the would all for capacity with
increased our increased service during quarter.
Noninterest noninterest the driven million on income expenses This quarter XX. second for deposit to foundation. Slide and was Core period. outlined by charge higher is mortgage business leasing expenses and the supplemental other contribution Additionally, a the expense $X.X from
the initiative of earlier, benefit from cost we're ongoing in coming and further to mentioned I expect As see our reductions recognizing efficiency the more periods. expected
Turning now to XX XX. Slides and
and the was the was by point million of ACL and includes basis X.XX% that which of the primarily points Our driven loans, net model for increase an second resulted unfunded in which X from expense $XXX period. period. resulted a This Provision was of during funded total XX $XX.X allowance, million were ACL in quarter. total reserves which basis charge-offs, a both provision total
basis loan relationships. XX balances assets asset concentrated Additionally, type. not points.
In at These to assets, primarily steady other our downgrade of held total downgrades in classified total any to the increased collateral to trends, X.XX% due or credit of were NPAs X
ACL a future coverage increase periods changes expect We to increased, anticipate environment. from remain as portfolio. build that to believe the reserve or our will ACL in modeled have in our slightly Our reflects to responds conservatively macroeconomic our and relatively we the we coverage losses continue we flat model
XX, and excess of targets. ratios capital XX Slides regulatory Finally, remain on and as internal shown regulatory minimums in
X.XX% quarter, have TCE TCE the X.XX% and value book XX Absent the XX% tangible reported. ratio During basis AOCI, been third compared impact would to increased as points. the ratio the from increased
Our total it to back commitment through provide strong, attractive XX% shareholder to over return continue our Archie We we for dividend. that shareholders, actions some our our remains returned earnings shareholders our to on our comments to support Archie? the during and capital to common that the maintain commitment.
I'll period an turn return outlook. of evaluate with now
