Thanks, Ralph. X Slide provides our financial quarter third highlights.
will Before large quarter. on the convertible I financials, notes of review of the in impacts provide a I our the details from the repurchases portion
favorable our our see, $XX resulted amount $XX the a strategic to in Boards million equity were partly the financial reduction $XXX can of million in impacted company. pretax dividend million to and million our expense, The you facilitate As tax additional $X quarter.
To offset XX% by to decision in parent transactions by or our million bank quarter of $XXX repurchase convertible notes. third results repurchase, impact a principal the a approved
a convertible As our notes result value our of outstanding. of actions, million in remain $XX principal
the to leave common we notes in strategically require dilution impacts in to of point the nearly notes. XXX% share certain quarter also of we quarter, remaining on entered notes was available amount remain convertible share of therefore, principal protection at that wanted have potential and/or stock offset up when capped cash our XXXX, Additionally, convertible dilution of to issued also reduce the payments to call remaining we to our are convertible of $XXX capped potential second maturity.
I the the notes.
We excess make to Effectively, price to diluted the into we potentially of be chose out the they, dilution And outstanding. certain convertible offset this of calls our which impact of dilution designed a transactions, EPS the may negligible.
EPS, diluted the reflecting of not cap So the adjusted we offsetting this did quarter. costs provide value
as mentioned, I offset However, in remains this place.
to highlights. financial Now, shifting the
the new year-over-year, decreased reflecting by consumer from a our quarter, partner new down third ongoing product X% billion late increased strategic fees and tightening, gradual the partially private $X.X our the loans $XX.X was leading spend During partner accounts. benefiting proportion growth.
Revenue of mix, shift billion label in X% to lower to sales credit lower in due resulting primarily $X.X quarter credit from year-over-year, quarter, of X% offset Average growth. in moderating of year-over-year, billion
decreased Additionally, net have continuing operations lower income adjusted EPS be found by $XX million sales can along convertible total big to diluted discount pulled a million primarily large The back X%, credit excluding convertible of lower on by lower card All decline our fees reduction the we income, adjusted $XX primarily merchant was from our as are which pretax and consumers discretionary diluted and which operations from slide expenses notes, $X.XX. a and bottom noninterest figures premium impact from fraud processing reconciliation expenses, as noninterest represented in expenses, had repurchased was EPS continuing driven the driven was due losses. ticket Adjusted the a the as the financial for well adjusted paid. non-GAAP repurchased appendix, with notes. table impact been was and measures.
Adjusted at income from our non-GAAP all financial measures in purchases.
Total
the after-tax impact by Excluding for convertible both notes, higher losses in repurchased the our quarter. from credit a million impacted provision $XX
primarily of X. reduction net notes is $XX lower $X interest the Looking impact noninterest year-over-year, discount detail a repurchased income $XX by increased partly in of on XX% the year-over-year, on decreased income Total while fees. noninterest million, quarter convertible fees, premium pretax the at financials the expenses late more down the Total $XX million. in and Slide for by paid from merchant processing lower by card million or result X% XX% expenses million driven our offset driven
our the expenses impact repurchased X%. from total Excluding decreased convertible notes,
expense the can Pretax million $XXX the details primarily driven or earnings website. in posted our Additional from million deck of drivers impact notes. appendix $XX our the by on be XX%, or on convertible repurchased pretax PPNR found pre-provision slide decreased
our sales repurchased and the year-to-date impact notes, and on a increased decreased the gains for X% Excluding quarter on X% from basis. PPNR portfolio convertible
fees to sequentially and addition X. typical yield net lower points Both XX.X% to and mix the in following trends. Slide shift our credit yield to quarter. in leading basis XXX higher were of interest primarily reversal billed fees interest gross continued due loan of losses XX.X% of late due Turning Loan to in year-over-year, higher seasonal margin product to decreased higher
Fed side, U.S. are we term the seeing treasury savings rate rates. lower the On accounts and recent funding and begun new as our cut rate cost moderate have decline to with funding CDs
growth from $X.X in accounted improve, funding increased reduce wholesale to XX% year by deposits, funding, see as up Additionally, chart, wholesale at XX% our direct-to-consumer to decreased which continues you we for ago. XX%. while to average continue on the deposits to quarter a deposits.
Direct-to-consumer billion from bottom can of XX% end, our fueled right deposits mix Concurrently,
While that we to grow steadily. anticipate continue deposits direct-to-consumer will
to million funding long-term growth our fund manage balance note have senior flexibility actions updated October to additional These we and unsecured funding disciplined covenants terms. that wholesale the by in and flexibility, maintain will efficiently facility capital including $XXX extended include credit objectives.
I'll that terms sources, improved further provide of sheet secured taken October, future diversified revolving We the management. strengthen recognition we the our evidence our maturity also XXXX our and improved positive provided with our capital to and commitment to action that of
Moving on to X. Slide
of compared gradual XXXX. rate X.X% future improvements historical third second net quarters to up basis delinquency third tightening.
The From for the of to the in was second quarter quarter the the quarter forward, subject was quarter. X.X%, largely seasonally and XX follow trends strategic Our and X.X% benefits credit expect this in to X.X% the loss from macroeconomic point seasonal our quarter continued points broad from for rate we XXXX
as The although These actions third by the a for fully actions effective of inflation benefit to outlook result reflecting the time expected customers point fourth will quarter baseline in elevated and timing a improvement in gradual prolonged losses take assumes in to XXXX of some the impacted rate reduction effects an our we customers.
Overall, the support the be for by will quarter to timing macroeconomic absorbed have will low slow consumers. Ralph year, be our from environment customer-friendly second increase losses, for see the quarter XXXX quarter a we it period as taken as our simply hurricanes, net the loss fourth mentioned. recent the is of
reserve expect environment As expected, reserve reserve provides scenario company demonstrating and credit XX.X% margin XXXX protection remained of X reserve of to rate And economic year-end seen lower, the of ended we plus delinquencies total the total points appropriate total to flat reserve slightly we loss tangible XXX conservative conditions be portfolio. in loan within a adverse stability capacity comprised quarters. from reflecting our believe margin to past the Further, a at rate our the challenging outlook, strong remained basis macroeconomic in loss and range uncertain year protection.
Compared XX% unchanged absorption arise. quality ago, year-end equity an economic rate our overall an the common credit should more of In modeling. weightings our have credit in increase over the loans, of quarter of we XXXX, this the
at and of our a XXX-plus Looking continued pressures. percentage This above the cardholders our our despite quarters risk with of result credit over inflationary remained product is mix relatively mix. well credit prudent tightening credit distribution, score X the as levels primarily past flat pre-pandemic ongoing as diversified actions more a
We compensated risk are for take. risk balance the sheet credit to and our continue we appropriately proactively to our manage protect we ensure
from the impact convertible from quarter Moving our our repurchased financial XXXX. unchanged outlook XXXX of to for Slide the remains second notes, XX. Adjusting expense
loans net percentage of spending, low excluding the to year and XXXX impact CFPB to impacts on to are is to reversal higher actions tightening interest to portfolio mid-single-digits credit products.
This guidance in higher year with gains proactive be and down a than continued early declining guidance. XXXX relative on credit gross interest based mitigation XXXX, We full XXXX, losses.
Total rates gross the shift pricing includes to revenue losses, be full reflecting due on mix continue which average proprietary to credit XXXX changes, lower margin product a and down to not material co-brand basis of interest fees digits expect sales, and higher low consumer a for single economic to expected
fees we the prime spend.
Note our However, gross for credit as reversals higher loan our cash asset we pressure and typical pressures benefit increase offsetting than and expect remain and fourth actions proactive margin interest quarter, net from liabilities. margin more assets interest CFPB well losses position, Fed seasonal as from expect to that a from transactional rates fourth as specifically sensitive, net quarter lower our normal of higher from balance we faster variable holiday rate lower slightly reprice as from interest
gained our fraud, along expect operational expenses. be expenses, of adjusted and fourth the to impact repurchased from excellence, focus and relative figure notes convertible down excluding higher mid-single-digits on sales a in result efficiencies with investments the advancement, modernization to volumes expenses further would than increased to higher reduced quarter third ongoing on adjusted quarter be we marketing As based technology XXXX.
We from expect digital including seasonally
to net As rate XXXX I loss around rate loss low net quarter a mentioned earlier, the be full year. expected low the the is X.X%. in for to third for X% point expect And we the range year continue or
of recent fourth modest $XX lower net aligned consensus. of relief This shift a and the communities in net solutions to quarter have rate conditions of second proactively quarter designed some in to in These the to That the assume gradual term FEMA XXXX. our will quarter modest the will continues economic the million of the rate longer aside, we payment approximately cardholders caused to to in second in near-term a in actions in XXXX fourth engage opportunity improvement the provide have accommodation hurricanes slightly have losses as devastation buckets a modest quarter from economist with outlook number of impact XXXX. loss loss identified delinquency live, the our result increase until the for needed. which we them Given zones frozen the
the repurchased year to of Finally, is excluding rate XX%, to effective convertible XX% notes. our be the our normalized impacts full from expected tax in range
repurchased tax was the the paid expected, deduction allowed premium As on limited.
the picture, provided financial Day progress bigger continue at we targets meaningful June. Investor toward Looking to in the our at we make
risk to made below additional achieving our way proactive of leverage progress XXX% our at CETX a on on quarter, a with strategies CFPB XX.X%. strong well near-term well implementing targets our and stable mitigation are actions given target, double our this We ratio XXX%, mix credit ratio a
targets to our book and achieve build will to We continue capital capital our tangible to grow look value.
highlighted, increased returns questions. shareholder we to positioned the to deliver already well up are for responsible open are Ralph growth, now As strong and lines we ready value.
Operator,
