Earnings per share were $0.63 for the quarter as compared to $0.23 for the same period in 2020.
Annualized return on average assets was 1.51%, and annualized return on average tangible equity was 16.8%.
And our core deposits are now 91% of total deposits.
Operating expenses were $61.9 million increase from the prior year, largely due to the addition of compensation and occupancy expenses from SB One.
Non-interest expense to average assets was 1.95% versus 2.13% for 2020.
Our efficiency ratio was 56.19%.
Deferrals are down to $132 million, of which $123.5 million are commercial loans.
And of that number, approximately 96% are paying interest.
In addition to further expanding our successful wealth management and insurance groups we, will evaluate other sources of revenue with a long-term goal of having non-spread income comprised in excess of 25% of our net income.
This quarter we originated or funded $526 million of new loans excluding line of credit advances and net PPP loan activity.
At quarter end, our pipeline remains strong at approximately $1.3 billion, and we are seeing a marginal improvement in the average rate in the pipeline.
As noted earlier, our net income was $48.6 million or $0.63 per diluted share compared with $40.6 million or $0.53 per diluted share for the trailing quarter.
Earnings for the current quarter were favorably impacted by $15.9 million of negative provisions for credit losses on loans and off balance sheet credit exposures while the trailing quarter reflected negative provisions of $6.2 million.
Core pre-tax pre-provision earnings, excluding provisions for credit losses on loans and commitments to extend credit were $48.9 million for a pre-tax pre-provision ROA of 1.52%.
This is consistent with $50.1 million or 1.54% in the trailing quarter which also included -- excluded merger related charges and COVID response costs.
Our net interest margin expanded six basis points versus the trailing quarter to 3.10% as benefits from PPP loan forgiveness reduced funding costs and a steeper yield curve were partially offset by lower yielding excess liquidity.
We expect to maintain a core margin of approximately 3% as we continue to deploy excess liquidity into loans and securities, while we're pricing funding downward and continuing to emphasize non-interest bearing deposit growth.
Including non-interest bearing deposits, our total cost of deposits fell to 30 basis points this quarter from 31 basis points in the trailing quarter.
Average non-interest bearing deposits were stable at $2.4 billion or 24% of total average deposits for the quarter.
Average borrowing levels decreased $196 million and the average cost of borrowed funds decreased four basis points versus the trailing quarter to 1.12%.
Average loans increased slightly for the quarter, although quarter end loan totals decreased $19 million versus the trailing quarter.
Loan originations excluding line of credit advances were strong at $539 million for the quarter, including $190 million of PPP2 loans.
Payoffs were elevated however, including $177 million of PPP one loan forgiveness.
The loan pipeline at March 31st increased $73 million from the trailing quarter to $1.3 billion.
In addition, the pipeline rate increased eight basis points since last quarter to 3.65% at March 31st.
Our provision for credit losses on loans was a benefit of $15 million for the current quarter compared with a benefit of $2.3 million in the trailing quarter.
Non-performing assets decreased to 65 basis points of total assets from 72 basis points at December 31st.
Excluding PPP loans, the allowance represented 0.92% of loans compared with 1.09% in the trailing quarter.
Loans that have been granted short-term COVID 19 related payment deferrals further declined from their peak of $1.3 billion or 16.8% of loans to $132 million or 1.3% of loans.
This compares with $207 million or 2.1% of loans at December 31st.
This $132 million of loans consist of $300,000 that are still in their initial deferral period, $47 million in a second 90-day deferral period, and $85 million that have received a third deferral.
Included in this total are $41 million of loans secured by hotels, $33 million secured by multifamily properties, including $20 million that are student housing related, $9 million of loans secured by retail properties, $7 million secured by restaurants, and $9 million secured by residential mortgages, with the balance comprised of diverse commercial loans.
Of the $123 million of commercial loans in deferral, 96% are paying interest.
Non-interest income increased $1.2 million versus the trailing quarter to $22 million as growth in insurance agency income, loan and deposit fees, wealth management income, and bank-owned life insurance income was partially offset by reductions in net profits on loan level swaps and gains on loan sales.
Excluding provisions for credit losses on commitments to extend credit and in the trailing quarter merger-related charges and COVID related costs, non-interest expenses were an annualized 1.95% of average assets for the current quarter compared to 1.82% in the trailing quarter.
Our effective tax rate increased to 25.1% from 23.3% for the trailing quarter as a result of an increase in the proportion of income derived from taxable sources.
We are currently projecting an effective tax rate of approximately 25% for the remainder of 2021.

Summary:
Earnings per share were $0.63 for the quarter as compared to $0.23 for the same period in 2020.
As noted earlier, our net income was $48.6 million or $0.63 per diluted share compared with $40.6 million or $0.53 per diluted share for the trailing quarter.