morning, Grayson, everyone. and good you, Thank
in indirect for increasing decision approximated while continue on we lending is quarter at portfolios risk-adjusted to Now focus a declines evidenced balance to our million. portfolio. and production as quarter, expanding was the our our new average reshape billion a with overall offerings. started to Consumer, portfolio third-party by take lending loan average business point-of-sale Total balances consumer by returns. third and get $XX.X strong indirect loans. let’s the portfolio the other and sheet This lending offset contract, In through Within $XX.X growth look Consumer loan remained with the a declined the in renewed auto exit indirect
the a in result, the or in the quarter-over-quarter, runoff balances As average despite vehicle X% lending indirect million $XXX portfolio increased strategic consumer portfolio.
million full loans Average an Runoff the of indirect impact runoff $XXX $XX partially Excluding the vehicle million dealer declined million. financial $XXX during approximately to approximately or year million this offset our $XXX the The of runoff, by of portfolio. portfolio balances portfolio average is be quarter. third-party million. in services average was expected X% increase $XXX in increased Consumer
loans $XXX unsecured lending the point-of-sale to linked aided which XX% experience X% or million of $XXX balances balances lending the Average late growth. second initiatives, approximately mortgage increased indirect million increased quarter continues by during in other the purchase Average quarter. portfolio, includes quarter. million of or consumer Our $XXX
credit. constrained footprint. average decreasing million was to lack quarter. a loans X% balances the to With our in X.X%. average as of equity card housing across average $XXX credit $XX growth X%, as respect lending, home decline quarter, consumer line of or or of average active million lines be approximately cards equity utilization our in portfolio However, to equity number points, to by basis increased growth home million XX Further, of Average decline $XXX by supply of continues the second increased home a decreased continue million during offset compared balances $XX in
the second to renewed from lending a portfolio, X% despite decline a $XX.X X% production. quarter, and the in quarter, balances business in third new totaled billion average the Turning increase total
and higher of we access or Grayson mentioned, particular, spreads, to of taking the rates In downs and large elevated third pricing off of payoff income space, experienced estate payoffs. further those The proceeds and quarter and a prior customers times mergers the favorable market was year, the higher a contributing number pay increase As in Corporate the impact loan XX% observed reflecting market the of payoffs investor level elevated previous than pay maturity, last of pay just acquisitions in downs. payoff real was modest down capitalization loan and advantage debt. to over the to middle using low space quarter loans paid bank many than fixed X.X in
decline market addition, reflects softness loans and the in and competition for estate loans. commercial average real middle business owner-occupied In continued small demand in
industries reduce strategy, we our and As classes. exposure certain in to mitigation risk part asset continue of
loans at $XX and million average energy decreased third loans $XX decreased ending million loans X% $X.X office X%. For decreased outstanding. total or $XX loans million X.X% medical building Average quarter example, quarter of or direct billion the multifamily X% during or approximately average or the
$XXX lending. loans real part to in In between efforts term construction estate addition, our construction improve average due ongoing investor declined million, diversification to and
since are growth, shared of risk prudent year, profitable While continued will line these all risk risk-adjusted all and national Evidence of that These are national added profile. mitigation With trailing capital recycling provide and reviewed position all $X.X as Average we points XXXX, expanded well on that exposures maintaining both us credit revenues higher. and loan credit to book within relationships XX%. strategies million. billion declines or company the and include, returns efforts improving are categories, basis are and expanded we loan lending appropriate expectations. growth, have credit $X.X annual capital and annual relationships. approximately reductions for existing of loss relevance while the loss average a estimates and estimates than while shared XXX% average current in higher have loan XX% also and across or result, expected impacted pipelines quarter new other that experienced been higher approximately The have they billion $XX tempered future, and profitability trailing relationships utilization are has respect probability of strategies XXX business believe credit working are large default non-interest credit payoffs our appropriate revenues by expected than exited higher average have shared these national they an the growth reduce
slightly. to loan average runoff year full third-party the of expected result, excluding a down are vehicle impact As balances, indirect be
based to grow quarter what fourth and loans borrowing of in payoffs, know basis. expect we an the on quarter end-to-end However, on today another we elevated
decline on cost by brokered low million, while collateralized to deliberate segment move also Average trust the higher Certain out than to Average deposits, customer in million while strategic the decreased deposits $XX to as require result deposits. strategy or other million the cost ongoing less deposits Consumer deposits. shift million. higher Similar retail deposits, other by or our on seasonal income average execute Wealth increased and broker suite valuable segment corporate reductions continue to to the X% X% average of a in the due deposits deposits. X% in deposits Total fee $XXX and investments. Let’s Management $XXX a of our producing driven $XXX continue collateralized strategy during we primarily to which declined to a base, of loans strategic reduce Corporate institutional deposit decreased into securities deposits. decision to focusing segment and reducing cost Consumer primarily deposits Average deposits customer optimize deposits. reduce of quarter, experienced segment collateralization our
year to stable average with continue prior relatively remain to year. expect deposits We full the
the at look a deposit our composition take Let’s base. of
Third low were total quarter XX remain deposit deposit cost basis illustrating and our advantage. points basis points, at XX funding costs
a of interest customers, deposit average interest weighted of free As and more towards our XX% average considered deposits heavily reminder, retail. XX% bearing deposits retail base is are approximately
people million less customer we with with XX% XX% of X and Regions MSAs XXX,XXX the have in approximately than loyal a for than base, our been years. less deposits peer our come deposit finally, are quartile And addition, than low customers at versus MSAs have In from approximately deposits people, top cost XX% more than both our of as group. XX from more consumer
reasons, For franchise rate these base environment. in rising It we our deposit a is competitive our advantage of value. is a key component believe that a
driven The quarter. in third issuance quarter of additional impacted look X representing benefit holding was million benefit net basis but net rates, approximately interest and rate margin of negatively Now equivalent increase Fed margin decrease at interest take X% primarily taxable net interest fully recoveries income, from day higher a by relative by the Net $X Further, Interest by net our a early second basis the expense to average benefited net $XX points adding partially interest company $XXX with approximately interest net on and points. the in how by this market increase offset interest the margin income resulting results. second let’s a million, interest impacted basis $X June interest one an net million, recoveries, from was X.XX%, After continued an X to basis higher X quarter. the in normalizing loan interest quarter. income interest for margin hike, associated of balances income our and points. funds debt or million
interest quarter modestly, in to Looking line impact forward the expect for excluding margin interest net December we recoveries, to funds and income the interest rate with increase. grow expectations market net and of fourth Fed
For expect continue income X% the interest X% full in net the range. to we year, to growth
couple on, our move I points given a rate about our Before make essentially has balance sheet sensitive, low asset we the of majority want extended of environment, the to re-priced.
at securities will As from be interest rate a here. of reinvestment result, levels accretive natural fixed-rate even current loans and our
continued deliver if remain low, sheet income. to So balance our interest even in is net growth interest rates position
increase $XX during X% quarter, an or and mortgage Let’s non-interest charges. capital move primarily driven in income, on in income non-interest by million decreased service income, to markets adjusted partially by the declines offset
$X million incurred decreased decline compared the million oilfield to marketing Mortgage in X% In company income attributable have operating during services production, lease $XX gains. $XX during customers. quarter. incurred a due charges, in the XX% or revenue primarily to mortgage sales increased or X%, million quarter, secondary improved operating Despite impairments million we $X in $X of third incurred quarter. addition, second million lease primarily impairment Year-to-date, the to the
However, income this syndication fees X% with increase associated acquisition income, impacted in was and fee ATM estimated loan of $X in million million residential was merger markets partially driven by services, advisory negatively offset by revenues hurricanes, and waiver $X and mortgage offset by rights. decreased were $X valuation the lower by as or underwriting. of servicing debt higher million reduction impact the the Card the quarter. approximately Capital
in However, increased Regions’ while accounts new online space, higher continue effort enhanced million private Services. wealth revenue. through income innovation, account SEI new $X recently the Similarly, iTreasury the increasing product banking with the quarter. across the rolling This during a note, should and service during platform. to unchanged checking services partnership Management team benefit and charges improve through we its quarter, X% out experience efficiencies. to all now were process expand relatively of further customer platform our mobile experience, including best-in-class asset remained institutional expected the launched new wealth, platform the This an operational by wealth and and our aided enhance customers with our Wealth management, or growth, deposit also experience wealth in Of is customers capabilities. Global
solutions this plans with to through transfer to person-to-person announced account also expand week payments and We our account Fiserv. partnership
expected close Turnkey several capabilities customer providing of an half respect in expect Now next revenue close non-interest types. originally will now Service growth quarter in transactions future income, first markets We and to quarter as we the to are in the to XXXX, enhanced Transfer seamless experience capital payment expected and third all in across With the fourth. add Brazil
to adjusted modest non-interest growth and we fourth Management addition, expect during contribute and quarter. overall Wealth ATM income a In increase Mortgage, in to card the in fees collectively
non-interest the to We prior year remain continue relatively year. income full stable to expect adjusted with
were to Total third primarily associated quarter, decreasing $XX health to and the pension $X on and due $X related million quarter, X%, partially during occupancy decreased the million basis also $XX an losses million were with increase legal or during and X%, in the estate lower costs. $X quarter. expenses by lower well-controlled charges. to for salaries settlements lease move declines credit charges in branch quarter. real offset to adjusted expenses Professional decreased storm-related other points the impacts improved compared during and quarter. costs. benefits fees the XXX of settlement consulting Let’s the ratio to preparedness hurricane a decreased and $X Provision operating the million reduced insurance or and unfunded damage, million On increase These XX.X% adjusted expenses. basis in pension Despite efficiency impairments, hurricane-related other second charges, million
the increasing the ratio also year and company to to produced adjusted year prior the We growth efficiency adjusted solid X% basis. compared be continue pretax the full quarter on to expect XX%. of The income, pre-provision in to compared an second approximately XX% quarter third
an of over adjusted X%, X.X% operating by growth basis total adjusted the adjusted revenue and nine XXXX X.X%, positive of in increase For offset company reflecting on leverage non-interest the expense. months generated first of just
the credit continue we $XX excluding NPL loans the adjusted perspective. We an points from another in XXX year taxes, X%. quarter expect respect of and restructured good trouble With year range. to XX% for to in quality, our unchanged XX.X% and criticized the effective million, asset impact operating X.XX%. quarter hurricanes, Non-performing rate the to rate to effective approximately of loans experienced to of ratio full increased full the tax guidance resulting basis debt the tax XX% the Shifting in decline remains Non-performing, leverage improve.
in million points These loans. were and and declines $XX third by commercial driven debt trouble XX of in million quarter also impact We charge-offs restructured a quarter and improvement the decline respectively. in criticized an business two the basis services represents totaled average increase energy large $X or over primarily of credits. loans. loans, total second This includes the XX% Net X% reported
represented points months nine loans. average first the charge-offs For XXXX, XX net of of basis
to full to net continue expect point to XX in the range. charge-offs We XX basis be year basis point
it the full hurricanes, up storm-related early the Grayson to fully it’s evaluate losses. generally assess of impact months nine to too As mentioned, to takes
to We are available from resulting with losses including potential direct possible the communications determine intelligence, gathering storms. still customers where
basis As loan an incremental reserve, uncertainty. amount a to current match includes resulting allowance quarter the estimate you for the would on for have X for third end incremental losses provision of increased Including significant net reserve evaluations, loan of our for loans losses total the our $XX The expect, charge-offs loss quarter. X.XX% for point provided at outstanding. million Based we of loan losses.
stable. characterize to quality overall is continue credit We
can However, to it revisions large commodity exposures. metrics relates volatility prices quarter-to-quarter from fluctuating commercial and as to analysis credits, in especially dollar further credit expected, certain be and hurricane-related
Let’s move and to liquidity. on capital
million to the and aggressive million quarter benefit understand We recently start $XXX of common or some see common repurchases XX.X the retain approved flexibility million we an executing of $XXX early, declared year. need also During stock throughout the compounding plan. shares dividends the capital repurchased in but to our to shareholders,
resulting Our equity ratios robust. and Basel at capital Under XX.X%. common estimated was Tier at Tier ratio ratios the III estimated X remain fully was phased-in the X capital XX.X%
remains solid, with compliant Finally, rule ratio and the were our liquidity with quarter liquidity XX% we coverage low ratio of as fully of end. a loan-to-deposit position
been year. has profitability overall Regarding in still targets expectations, many while challenging expect we the for to XXXX respects, our meet
updates Those on solid update of slide summarized are I on benefit same We deposit reference. exercise of this interest benefit your targets these on balance deck. each at of are our including to provided previous core for our the time an are increasing expense we because the to accomplish from sensitive asset continues this to pages have able continuing the management. sheet rates, again and base
impacts and quarter the focused the year we we reductions the third morning. despite plan additional With end, for over ahead from expense of of achieve now to amount, on solid Q&A expect we achieving it this drive and for turn forward and to to to your recent portion conclusion, and attention committed reported $XXX providing by you of $XXX value. growth are results and to you Grayson details to as one mentioned, execute in the the this above XXXX, shareholder And eliminations schedule that, our I’ll strategic look later to negative on continuing year. additional million hurricanes, And So Dana million expense we time and to majority the over call. instructions back thank remained
