Average loan yields, excluding accretion on acquired loans increased 6 basis points to 5.4%. We expect loan yields to continue to increase in the coming periods as our fixed rate loans mature and reprice. In the fourth quarter, we continued to see new loan yields in the 8% range. And looking forward, we expect loan growth in the low single digits. Turning to slide 10. Portfolio diversification in terms of asset mix, industry and loan type has been a critical element of the company’s lending strategy. Exposure across industries and collateral types is broadly distributed and we continue to be vigilant in maintaining our disciplined, conservative credit culture. Non-owner-occupied commercial real estate loans represent 33% of all loans and are distributed across industries and collateral types.
Construction and commercial real estate concentrations remain well below regulatory guidelines and below peer levels. We’ve managed our loan portfolio with diverse distribution across categories and retaining granularity to manage risk. Turning to slide 11, to credit topics. The allowance for credit losses totaled $148.9 million or 1.48% of total loans compared to 1.49% in the prior quarter. The allowance for credit losses, combined with the $174 million remaining unrecognized discount on acquired loans, totaled $323 million or 3.2% of total loans that is available to cover potential losses. On to slide 12, looking at quarterly trends and credit metrics. Our credit metrics are strong, and we remain watchful of the ongoing impact of higher rates on the economy.
The charge-off rate during the quarter was 0.19% annualized. Nonperforming loans represent 0.65% of total loans, and accruing past due loans are 0.3% of total loans. The percentage of criticized and classified loans to total assets increased over the prior quarter to 1.6%. On slide 13, providing a longer-term view of our stable asset quality trends. Recall that in the third quarter of 2023, we recorded an expected charge-off of $11.3 million. This was an acquired loan that was fully reserved through purchase accounting and the charge-off did not impact earnings or capital. That loan drove, that somewhat higher charge-off level in 2023. Noting the stable trends in nonperforming, past dues and criticized and classified loans over the past five years, also recall that much has changed at Seacoast over this five-year period, including eight separate bank acquisitions and a near doubling of asset size, and the stability of our credit experience during that period reflects the consistently applied discipline of our credit culture.
Moving to Slide 14 and the investment securities portfolio. We recognized an opportunity to sell low-yielding bonds with modest losses on a small percentage of the investment portfolio. The proceeds, approximately $83 million were reinvested into higher-yielding bonds with strong prepayment protection and good convexity. By selling shorten, low-yielding securities from the portfolio and reinvesting into longer duration prepayment protected agency CMBS, we were able to add considerable yield and interest income while prioritizing predictability expecting an earn-back period of only 1.3 years. The average yield on securities increased during the quarter by 10 basis points to 3.42%. The changes in the rate environment impacted portfolio values positively.
And as a result, the overall unrealized loss position improved by $105.6 million. This contributed $0.61 of the total $0.82 increase in tangible book value per share during the quarter. Turning to Slide 15 and the deposit portfolio. Excluding the paydown of brokered deposits, organic deposits decreased by $145 million. We saw lower balances near year-end, particularly in distributions from escrow and other attorney and trust accounts which comprised approximately $100 million of the decline. Noninterest demand deposits represent 30% of total deposits and transaction accounts represent 54% of total deposits which continues to highlight our long-standing relationship-focused approach. The cost of deposits increased this quarter to 2%, a slower pace of increase than in the past several quarters.
Overall, our expectation for the first quarter is that the cost of deposits will continue to increase, albeit at a lower pace. That said, we remain keenly focused on organic growth. On slide 16, the bar chart shows non-brokered customer balances, including the sweep repurchase products. Seacoast continues to benefit from a diverse and granular deposit base and customer funding declined modestly, consistent with typical year-end patterns. We continue to be very effective in new customer acquisition with a number of fourth quarter new transaction accounts increasing by 13% year-over-year. Our customers are highly engaged and have a long history with us and low average balances reflect the granular relationship nature of our franchise. And finally, on slide 17, our capital position continues to be very strong, and we’re committed to maintaining our fortress balance sheet.
Tangible book value per share increased to $15.08. The ratio of tangible common equity to tangible assets continues to increase, reaching an exceptionally strong 9.3% in the fourth quarter. Our risk-based and Tier 1 capital ratios are among the highest in the industry. In summary, we remain steadfastly committed to driving shareholder value and our consistent, disciplined expense management positions us well as we continue to build Florida’s leading community bank. Chuck, I’ll turn the call back to you.
Chuck Shaffer: Thank you, Tracey. And operator, I think we’re ready for Q&A.
Operator: [Operator Instructions]. We’ll go first to Eric Spector at Raymond James.
Unidentified Analyst: Hey, good morning everybody. This is [Eric Down] (ph) in for Eric Spector. Just wanted to touch on the funding side to start off. I appreciate the loan growth guidance of low single digits in — it’s great to see you reduce wholesale and brokered funding this quarter and the new account openings. I’m just curious how you think about funding the loan growth and how you think about core deposit growth in 2024, what initiatives you have in place to grow deposits? And do you expect to grow deposits at the same pace as the loans? Just any color on that, that would be helpful.
