As noted on Slide 20, net interest revenue for the quarter was $261 million, down $8.9 million from the fourth quarter. Net interest margin was 2.80%, down only 8 basis points from the previous quarter.
As LIBOR has remained elevated relative to its historic relationship to other short-term market interest rates. This coupled with our ability to move interest bearing deposit costs down 11 basis points has allowed us to preserve a large portion of our margin.
While the 150 basis points of interest rate cuts by the fed in March did have an impact on both net interest revenue and net interest margin, the full effect will be realized in the second quarter. The most significant component of net interest revenue and net interest margin that we can most influence is deposit costs. We're working closely with our depositors to secure and maintain balances, but price appropriately given the almost zero rate environment of which we operate.
In the month of March, our interest bearing deposit costs declined to 79 basis points, and we believe we can continue to lower our costs over the coming months.
On Slide 21, fees and commissions were $193 million, an increase of 7.4% from last quarter and 20% quarterly year-over-year, continuing to be primarily fueled by strength in our brokerage and trading and mortgage businesses. We generated record revenues in our trading and derivative businesses this quarter with total brokerage and trading revenues eclipsing $50 million. The majority of this was derived from mortgage related trading activity with first quarter MBS, TBA trading revenue of $31.7 million, a 40% increase over linked quarter and 212% increase from the same quarter a year ago.
While the growth rates here are impressive, even more impressive was that this increased revenue from mortgage trading activity was partially muted by a decrease in the fair value of asset backed and municipal securities due to widening spreads.
Given the lower rate and higher volatility in the mortgage markets, our traders has done a phenomenal job supporting our clients’ management and repositioning of their investment and hedging portfolios.
Mortgage banking saw a significant surge in production revenue this quarter, growing $11.8 million or over 46% relative to last quarter, and almost 56% from the same quarter a year ago. Total mortgage production volume increased to over $1 billion with refinances representing 57% of that volume.
Additionally, we increased our gain on sale margins by 62 basis points compared to last quarter.
Another success story of the quarter relates to the hedging of our mortgage servicing rights.
Given the speed and magnitude of the decline in mortgage rates, the fair value of our mortgage servicing rights declined $88.5 million in the first quarter.
However, our securities and derivative contracts held as an economic hedge offset $86.8 million of that decline. The securities held with hedges also yielded net interest revenue of $4.6 million.
So the net MSR activity results in $2.6 million benefit this quarter, an impressive outcome for this environment.
Fiduciary and asset management revenue was down just over 1% this quarter, which might be a surprise to some given the perceived market sensitivity of this segment. In reality, only about a third of these assets are exposed to equities today, which has added resiliency through the cycle. Strong sales efforts, coupled with this prudent diversification, proved out with relative outperformance. Many of our fee businesses are clearly off to a great start this year and once again highlight the significance of the revenue diversity that our company has.
Turning to Slide 22. Total operating expenses decreased a little more than $20 million, down 7% from the fourth quarter. Personnel expense decreased $12.2 million this quarter, largely due to the combination of a decrease in both deferred compensation and regular compensation of $2.2 million.
Additionally, the fourth quarter included approximately $2 million in severance costs due to realignment of personnel that did not recur.
Employee benefits increased $3.6 million as the seasonal increase in payroll taxes and retirement planned expenses was partially offset by decreased employee healthcare costs. Non-personnel expense decreased as well, down $7.9 million compared with the fourth quarter. Mortgage banking costs decreased $3.7 million, largely due to the reduction in MSR amortization expense. Business promotion expense decreased $2.6 million due to the seasonal decrease in advertising costs, combined with reduced travel costs as a result of the current pandemic.
In addition, the fourth quarter included $2 million charitable contribution to the BOK Foundation, which did not recur this quarter.
As Steve alluded to earlier, we have taken steps to help maintain lower expense levels for the remainder of 2020.
First, we have put a hold on all planned adds to staff and are challenging all positions that become open before we recruit a replacement.
Second, we will achieve savings and business promotion, special consulting fees and occupancy related expenses in the current work from home environment. And lastly, we decided to delay all amount of essential IT and other projects in this less than favourable operating environment.
We’ll continue to support client facing initiatives that enhance our customers’ overall experience and other important projects to support on infrastructure. Prioritizing and slowing the pace of less critical projects is prudent until the economic picture becomes clear.
While our liquidity remains strong, given the extraordinary impact of the pandemic on the capital markets, we've taken a number of precautionary measures to ensure it remain so, including enhanced daily monitoring of our liquidity by tracking deposit inflows and outflows by customer, analyzing loan advances by segment, optimizing our borrowing capacity at the federal home loan bank and increasing our collateral to federal reserve discount window among other things.
As mentioned earlier, our deposit balances and ability to gather additional positive deposits have remained strong.
As noted on Slide 23, we have over $12 billion of secured borrowing capacity and over $7 billion of unsecured and contingent liquidity capacity to support the liquidity needs of the company.
Additionally, we are in a position to fund PPP loans, now totaling $1.8 billion via the federal reserve PPP liquidity facility.
Our capital position also remains strong.
In fact, it was a noted reason that BOKF in a primary source of holding company liquidity had its A-rating reaffirmed recently by S&P and Moody's. With a common equity Tier 1 ratio of 10.9% well ahead of our internal operating range minimum and a full 390 basis points above regulatory minimums, we are in good shape.
We will also take advantage of the OCC’s capital phase in plan for CECL implementation.
And lastly, a word on guidance. Due to the uncertainty around the severity and duration of the pandemic and its impact on the broader economy, we will not provide the more formal guidance we've given in the past. We'll leave you with a few thoughts that might be helpful. Apart from the loan advances to date of $751 million and the PPP fundings of $1.8 billion, we expect no loan growth for the foreseeable future. Energy deals will likely not be done at current prices, healthcare opportunities are generally on hold due to the pandemic and little activity will be present in our CRE and C&I portfolios.
We will continue to originate mortgage loans with a very limited amount ending up at our permanent portfolio.
We will continue to reduce deposit costs, ensuring our deposits are appropriately priced, given the near zero rate environment, all in the context of overall funding needs. We took advantage of the dramatic widening of mortgage spreads in the first quarter to pre-invest several months of anticipated cash flows from our available for sale security portfolio at significantly advantageous spreads. After those anticipated cash flows have been realized, we will resume reinvesting in mortgage backed securities with appropriate spreads and control prepayment and extension characteristics.
Our diverse fee revenue stream should continue to provide some mitigating impact to overall earnings pressure being felt in the spread businesses.
Our disciplined approach to controlling personnel and non-personnel costs will continue.
We have no plans to cut existing capabilities or products. And although, we will slow less critical projects, we'll continue to provide funding for improvements in the client experience in technology infrastructure. We entered this downturn with a strong capital position and do not see a threat to the dividend we pay.
As always, we view stock buybacks opportunistically but within the context of maintaining our strong capital position.
I'll turn the call back to Steve Bradshaw for closing commentary.