Thank you, John.
Let's start with highlights. our quarterly
our CECL derivatives share $X.XX. quarter net substantially totalled, our rates resulting with quarter and move diluted this a impacting per of spreads of and results interest $XXX significant associated quarter net Items a the increase charge during down credit income offs First as in widen. excess million includes customer earnings provision in to CVA large
during additional negative on the our pretax net MSR, the our total, million. adjusted favorably highlighted quarter. reduced approximately of Partially performed hedges adjustments slide the offsetting results items and by In $XXX the selected
Loan growth look commercial late average was X%. the at increased take loans driven the elevated with activity balance in increased Adjusted primarily ending Let's starting adjusted by sheet. while quarter. results loans a X% our draw the
the XX% from year the the at XX% increased end of of end at March. to rates Utilization
financial during of of peaked the utilization expect As we a slowed around crisis remain rate XX%. week increase reference, and pace global rates the XX% is for the being. time typically relatively point our the In of will around utilization quarter the stable last and
seek have portion investment The the been or Approximately primarily draws defensive we financing industries. across anticipate capital customers in we are a companies, of markets. cautionary will have experienced nature and from so and through geographically based come all broad these eventually permanent XX% grade
and too try However, it predict is the of early refinancing. to any timing
loan growth challenging. a predicting As is result,
purchase that small X, approximately of businesses. to loans billion which to want do April you capital, on in I included However, remind $X Ascentium closed we our
solutions We to speed during known combination to businesses and the is difficult of small look spectrum leveraging needs meet for in broad the forward technology, time. Ascentium convenience our this of with banking that
their turn as Let's drawing their X% many corporate to on deposits Average increased our deposits. deposits X%, are that while of in excess customers increased cash keeping lines ending accounts. deposit
the crisis. down customers of clarity get the We financing over or balances in as time markets, capital expect more customers the these come impact secure health will regarding economic
we soundness the insured as experienced institution. deposits and increased stress, a and of consumer As periods of financial in regulated safety customers seek have previous
both increase We at expect continue to industry. deposits will across regions total the and
within each and in increased broker segment a deposits the ending These On decrease segment consumer wealth while by basis, wholesale deposits X%, corporate other deposits the X%. partially increases increased an segment. offset were
which increased strong and income is for X% and net margin X.XX%. net Shifting margin, to income a regions. interest basis points story linked increased to interest quarter Net interest five
extremely been an source market volatile As margin backdrop. interest of rate stability expected under have net interest a income and that interest
forward of Specifically, by the lower in hedges lower quarter. active loan were yields cost benefit the starting offset and becoming funding
Now from our sheet movement forward starting move in that largely most insulated have of our begun to and short term our ability costs deposit is hedges lower, balance given rates.
$XX This as valuation the of billion, interest in basis to the added five-year and a income end million benefits hedges of Further, market tenors $X.X for hedges forward realized points four entirety will all Loan of are quarter quarter. another quarters. increase margin and have the differentiator. the future net our relative to going
a cost, The rates of LIBOR in midyear. short when which our normalize close remained net elevated of zero. as at is moved indices, interest Of supported benefit by rates income are note, elevated driver large other to was projected deposit LIBOR to time March term
while net interest increased Additionally, balances interest but net margin, income, interest but in reduced net day fewer the income, higher one increased average margin. loan interest net reduced quarter
deliver deposit Total franchise. interest-bearing the and basis points six this industry-leading compared cost of deposit points to prior to to deposit costs basis basis XX points. declined our in space, the strength performance continues quarter Regions points X XX basis declined exhibiting to
coming quarters, XX basis migrate the to the down cost XX back to deposit range. point into expect Over we
Program, at these but too quarter, Looking let forecast time. ahead in me from impact exclude expectations potential Protection second saying the to the the uncertain Fed’s to by Paycheck the start are this include
second acquisition. Net quarter net is interest Capital interest income interest margin net Ascentium to roughly margin and anticipated X.X%. from at expect We the benefit
Ascentium, Excluding and is sheet average increased our term needs near larger, loan in anticipated, liquidity a given the customers. balance from
reduce benefit margin. slightly While this will interest net income, interest it will net
quarter. expenses. markets all compared uncertainty, the non-interest take million. let's XX% in fee revenue economic $X fourth a revenue decreased were volatility by quarter, decrease Almost a the prior impacted in After capital at Now resulting a to look and categories quarter to record revenue experiencing market and
other interest customer derivatives experienced categories. rates, $XX generated with CVA, income all record unfavorable markets connection capital totaled Excluding million. across We lower in but decreases income
M&A in certain. are hold outlook particular, transactions, markets stabilize economic becomes until forward, Looking the more on remain and to likely
rate quarter, hedge XX% Lower application in net increased the sparked favorable a volumes production. increase driven significant as primarily rates and year-over-year environment, associated on mortgage the sales elevated fourth as well servicing with income rights. record positive Mortgage interest performance over by
Wealth line our double first ATM first lower revenue decreased we respectively. charge volatility. X% X%, and stable a experience If our conditions and card and fact, persist, however, with was asset volume remained management values. decline historical next than fees quarter quarter market Service revenue application quarter total in could market more despite average. In
spending During the of in observed reduction last a two XX% approximately quarter, consumer activity. weeks we of the
$XX we income million Partially current from anticipated revisions pre-March by per forward, total to estimate income levels. levels be month spend to consumer noninterest our these interest $XX rates. Looking positive will impacted headwinds, offsetting negatively from if persist, however, lower approximately resulting million mortgage
XX% the increase the prior the increased and of approximately quarter year. XXXX versus expected prior XX% Full is year production to are by compared production to strong. first year Mortgage pipelines
expenses. tax to by on fourth negative controlled, by driven decreased the noninterest on fees rate and in and was lower efficiency marketing market adjustments quarter. move benefits, offset lower well fees driven effective prior ratio incentives noninterest the assets, production-based X% expense. adjusted and decreasing lower XX.X%, value professional noninterest benefits primarily Professional elevated salaries expenses by to Adjusted X% Let's company's compared and professional quarter, XX% driven The Salaries primarily legal, by decreased quarter fees XX.X%. employee and are and income. benefit which was consulting the first remained
only benefit to of continuous list current our we initiatives. processes have continue from completed XX% improvement We identified of as
first For XXX,XXX quarter example, corporate of last since square have year, almost the X%. feet or by reduced we space total
it's communicate is interact we other. already on how early, and While pandemic having customers each still an impact the and with
already changes bad. that are instances in change many We've discovering all is and initiated not
have there on For example, concerned. in dynamic are conferencing video or corporate increased where calling interact opportunities with it's teams is Whether space wealth and effective winning and new hoteling, of ways. believe Webex use we we ways and to through additional business customers using
are navigate through disruption. our we as we keep going minds to this open So
XXXX. standard accounting X, shift We CECL let's the asset So as of January to quality. adopted
As permitted after capital CECL be equity each at by phased the Tier Federal end until quarter accounting will X it the the year. impact Reserve, on in XXXX, the standard which will common XX% per we defer of from
represents our provision reduction quarter points. as equity adjustment amount approximately basis is and this The XX% million related after net impact in Tier of XX quarter as of first is X as X of tax XX, shareholders' on March directly well January our our excess charge-offs. of a all equity $XXX to day approximately As of recorded common X ratio first
uncertainty million as economic initial stimulus charge-offs including the already enacted uncertainty for and adverse the and on million. since includes conditions $XXX at Under within of significant This as credit expense $XXX additional the economic quarter surrounding $XXX amount provision, reflecting adoption of the January potential for million in loss forecast, providing X, well additional provision net benefits stimulus, CECL, assessment government occurring totaled XXXX. all
services resulting total primarily driven loans. impacted by credit of and XX%. restructured provision downgrades business is national respectively, basis associated reserves portfolios. in and loans the X%, primarily loans increased $XXX loans XXX% quarter further and shared energy nonaccrual XX The increased the points credits. recent additional impact debt was decreased our delinquencies by credit while most with and and higher losses Charge-offs troubled exam. included from million energy The for were specific criticized Nonperforming this X% of restaurant loans allowance Total total X.XX%
modifications a We troubled environment, as Recently, TDRs. created long financial regulatory closely. as of do agencies of by in current experiencing of issued payments not will guidance a COVID-XX to classified stating not as result material short-term economic distress increase debt XX. our all their borrowers monitoring as In a be December this loan were restructured are expect portfolios impacts we as
for However, I been portfolios of currently the In want instances, minutes stress. same discussing to couple time we few have are most take a to experiencing a portfolios these highlight now. some
quarter Since to the at monitor. totaled our our the sector, losses to Energy of where occurred. of Direct have we energy have is a most diligently worked billion $X.X which exposure is X.X% to or portfolio outstanding we and reduce oilfield XXXX, remix balances loans portfolio end. services continue
an review in E&Ps, and the quarter, clients, of the oilfield space. E&P of all midstream midstream both our handful During and we in conducted intensive a downgrades energy which of resulted including services,
a business the always We over years have on maintained client energy selectivity. XX focus for heavy have been in and
remixing spring our did expect as do base overall continually are least at redeterminations the we stress process, we reassessing well crisis, even it additional believe the borrowing in perhaps perform as but price portfolio. XXXX deck. the the given oil and current better At Our will in are portfolio levels, in significant price
due quarter labor hotels, monitoring costs, dining closely general casual hospitality we balances at with Total Casual were restaurant of margins. portfolio, million restaurant experience are are continuing oversupply, includes balances and stress quickserve. billion transformation and dining digital to pressure the on $XXX end. which approximately restaurants $X.X challenges higher Within to and
pressure place additional as in continue. expect in shelter space We this orders
already for deferrals. mitigation fact, receiving requests In we're and payment
up restaurant our seems to of XX% portfolio, be represents which Quickserve, holding well.
of have most will Our hotels large, the strong the well-structured the exposure cash which limited is REITs, to Depending on primarily expect and positions. typically a leverage of duration we to handful ultimate lower weather pandemic, downturn.
we However, already relief. requests several for experienced have
current the also the Capital X. agriculture quarter the closely But acquisition million, We're CECL, by let loans, This me life through mentioned and transportation, these balances acquired as accretion income retail will on of the will purchased offset small also I you they of the business reported estimated for with under our to adversely $X impacted briefly approximately results. everyone business portfolios potential be between the adjustment initial $XXX a run watching April will These Ascentium environment. as remind currently loans have we see second by billion be of loan credit over previously which part be interest sizable that the expense. through be to establishing the million discount and our will provision portfolio. of allowance $XXX expense
and on stress. prepayment Because are Recent the FICO business of include and do protections. rates annual believe Recall, will equipment business-essential on periods be been high yield focus XX%, loss business book this X.X%. loans approximately we have through the they these resilient on average of approximately they certain guarantors,
increase our So to to customers. while losses support are we to feel good in the about working economic term the to the near will environment, small better forward very acquisition continue looking and business together due
the impacted ultimately and will a be of is our as of extent programs severity still to are There lot to impact the government effectiveness individuals businesses. customers that well all the which the place support economic of is various in factor duration and The of as a unknown.
a and know and communities. position assisting environment do that are strength of this customers to from we we our what committed However, is enter
we will mentioned, John experience stress. know some As we
positions and decade have to better and approach to management us However, risks have capital our to accompanied dynamic and enhance our strong and discipline credit by risk journey downturn. economic long liquidity an made framework of well risk managers our us positioned weather concentration managing
liquidity, had line we wanting increase at from advances the and used Home primarily rest during look These at cash our critical. credit Reserve. prudent thing to a a management ensure Loan quarter. the of in of take We the at Federal draws experienced additional liquidity same late Federal and to being the cash spike industry, on through which we the did the were stress, Like let’s So capital hand. is periods companies they adequate Bank, in
Liquidity loan draws the credit our in in at deposit Regions base, traditionally customers the of by impact with XX% stable starts lowest end this superior group really late peer of includes our liquidity quarter a which in value. has deposit increased one granular line and maintain and of observed quarter. stood the provides at ratios ratio Regions
risk framework prepared our ensure times meet turbulent customer liquidity testing lease. management such as stress positions our and to and Further, are needs
Beyond additional Regions to can be deposits, liquidity, meet customer used readily which needs. of sources has also ample
Our end primary the at Bank, sources Federal Federal Reserve liquidity combined at balances Federal $XX unencumbered highly window, cash and total $XX when readily available quarter at available the include approximately totaled capacity billion. billion securities, availability sources Home at another with these and discount liquid $XX the of held liquidity Loan at Reserve, stands billion borrowing
needs. remain tool the advances fulfill used to short-term funding primary FHLB we
SBA and needs We to and have of we meet customers. seen program interest the are Paycheck in loans endeavoring protection great the
also Program Lending use resources With were source. the funding to alternative an Paycheck we hand While the we’re as new liquidity looking respect cash forecast meet Federal Reserve’s position. company Facility and must management and our worth maintain also target XX XX cash parent payments we always months company of current months. a By above service exceed on near-term cash, remain those dividend parent at needs, Protection conservative policy debt of
strong Let’s to turn levels. capital maintain to capital, Regions continues
estimated Tier ratio is equity at common X Our X.X%.
We’ve X%. this is we is this to approximately could opportunistically. and level deployed of stress management closed buffer We management is basis use limits. which X. maintained ratio XX capital We withstand believe and a the the quantitative strategic scenario previously remain have be post derived on mathematically also as which for Ascentium buffer, transaction, of severely adverse appropriate Our April the discussed still the above a as target points portion
economic As capital of will impact we be levels. driver go earnings the and near-term forward, performance its on primary future
the the to have to mind keep seen credit and effectively lending never impact The stimulus businesses In within addition which the to to help implemented. COVID-XX, due ability economy dramatically important programs is the in it to and negative that will these and of work for have support we at consumers programs us also been volume government industry. the fiscal implications performance
During times. of uncertain to uncertainty, this them work period continue we customers with help will to these navigate our
Additionally, early give our key granular we performance us where the into into will warning view which years, over we of portfolios, indicators and built the we that lean our performance have a move see to short-term indications more a face relief rated credits those that performance. customer will once stress over, we’ll into is will continue to review a adversely we categories their and continue
have we anything whereas credit is capital our on range that know, robust stress our is stress. environment a this ever unlike portfolio, capital perform we seen the you performance to a us the we confidence have of have planning and As testing infrastructure withstand within gives stress
dividend. the currently announced to million withstand to our dividend we have no repurchases had the repurchases the eliminate dividends. During we established our declared plans no plans common have company adverse the conditions, through to during second reduce quarter, We or share in $XXX suspend quarter Because quarter. and share
exercise capital will management the monitor prudent continue However, business environment. to and we
by to which So us we of exceptional resilience ensure period customers sustainability. as robust our continue the externally internally uncertainty. gives capital well regulators as of confidence during and are needs This economic meet to and planning communities this our stressed liquidity in processes, summary, and can designed that our are
facing, the John As environment we our as are targets announced are for considering XXXX. our targets resending financial mentioned, three this previously as year year, we unprecedented well in
more the strategic plan with we to updated outlook its you will committed continued We provide execution. a good certain, becomes have and are economic targets. When
of of shareholders. our In benefits the customers in landscape, in we Regions associates, in on you strongly We assured serve our stands support this the stakeholders. concept value, and believe communities us helping our for difficult this focusing our also shared thrive, and Rest to the turn navigate help to thrive. all order through extraordinary meantime, we attention time, are which during communities ready need to
With question happy each ask light that environment, allow that, only of In the we’re for one do you questions. more take your of to ask to current participants. we
open for now will the We your line questions.
