This quarter, our credit challenges are certainly not behind us, but we were encouraged to see the reductions in four key metrics: Nonperforming loans, charge-offs, overall delinquency and in the provision. If the economy continues to expand at a reasonable pace, we believe we will continue to see reductions in our overall credit costs. We were also pleased to see the gross on an average basis in the CNI and Commercial Real Estate portfolios although those increases were offset by decreases in our Construction and Consumer portfolios, making overall loan growth difficult. Phil will provide you with details in credit in a few minutes.
Our solid performance this quarter reflects the basics of low core cost funding, improved interest margin, good expense control and improved operating efficiency. It is important to note that our $0.17 was achieved despite a significant link quarter reduction in residential mortgage activity and a generally unfriendly regulatory environment that seems intent on reducing our non-interest income, while simultaneously laying on an ever-increasing compliance cost.
The people in this company have always responded effectively to past challenges and I know they will do so in the future. As a team, we believe we can continue to improve our earnings performance as we get some help from the economy and as the overall confidence levels improve. However, since confidence levels have a tendency to fluctuate based on national and world events, we will be ready for any eventuality.
From a funding standpoint, our continued core deposit growth and strong liquidity enabled us to reduce our reliance on wholesale funding. We worked to achieve an optimal deposit mix that deemphasizes higher cost time deposits and that rewards customers as they expand their core banking relationship with us. These initiatives enabled us to expand our net interest margin this quarter, and we feel we can further reduce funding costs through certificate of deposit repricing in this rate of environment, but not at a pace we've seen over the last several quarters.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV