you, Thank John.
quarter. from declined Average Let's ending adjusted sheet. prior start with and the loans X% the balance
production loan quarter. commercial the New increased and X% prior renewed to compared
However, levels. market, liquidity by negatively in low historically utilization balances impacted the remained excess resulting in
commercial average of XX%. was As compared quarter utilization to end, XX% of line our historical
compared Just $XXX expect million Commercial PPP to by loan to to XXXX the management record increase low to to be ending recent the reflected payments. year digits, increase we average segment, continued higher Average offset loans reflecting to by activities is primarily consumer by XXXX, a to continue be expect growth we loan reminder, utilization down adjusted quarter deposits, grow full balances to Overall, ongoing this by consumer respect in equates company's loan growth. strong by The loans forgiveness mortgage impacted X% balances. account and line each approximately government portfolio With stimulus balances runoff of digits. low of adjusted led timing. new balances to single portfolios. although due single again, levels, production,
also account growth. new are we However, experiencing
We and expect as increase, near-term deposit customers dispersed levels. is corporate stimulus balances maintain cash to will the particularly higher fully recent continue
margin in $XX averaged by points. interest during core to from Net categories. over of basis balances higher-yielding first lower also X.XX%. NII decreased a X% two million which slower days net count and out from stems $XX one a declined basis quarter, XX as forgiveness. during offset the the mostly impact remixing PPP stability PPP-related loan Net income benefits NII on source million. of from Regions. quarter income prior from reduced the to and shift $XX reduced billion fewer combined Cash Let's for the Two declined the round excluding margin by remain by when PPP. decline The with margin reported interest X% NII interest round or and quarter loan and significant quarter day were
the was at stable cash from historically excess management our rates impact to Excluding and values the interest NII a active hedge-related our over basis form quarters, zero $X low offset million a call management costs hedges. levels, remained of little by margin. we basis PPP, our to proactive mostly increase basis one million Interest-bearing income interest to contributing rate cash of to million quarter. loan Similar current margin. quarter notional and the notional two the a points hedges $XXX points rate net margin. strategies, debt hedge million the of point despite quarter prior short-term balance drove in management, December Cash Loan each $X long-term mature average to begin sheet average fell of interest $XXX lower environment. X.XX%, basis costs hedges contributed At a long-term and in point and expect of margin compared deposit and XX the near evidencing deposit XX points one in higher until normalized $X added fourth Higher basis XXXX. to values million
$X.X a floors in of swaps of quarter, billion we protection XXXX. the total and and flow less Within repositioned targeting XXXX cash
resulting sustainable While believe to the future, profile growth. there the additional in support us our may adjustments goal allows we be of consistent,
The extent enhances benefit are and hold only steepening longer a future, loan the the in yield Fed curve participation to market we the our recovering in from for increases protecting growth stability while interest rates potential currently NII the to economy. than is Specifically, in expects. positioned short-term the on
ahead excluding Looking quarter, the to to cash we and be stable. second relatively NII PPP expect
balances will while a to one has steepening reinvestment levels, NII curve the asset day long-term stable. are benefits remain reductions, cost Deposit and additional helped near-term expected support remain recent headwind. hedging will relatively rates quarter, modest loan While in
a and neutral to NII. second and expected growth a potential relatively year from rates drive the are economy, half for balance the growth sheet of strengthening in impact ultimately beyond, Over the
as results. the financing fee for regulatory quarter permanent respond customers headwinds. strong and generated of decreased delivered rate real to interest Now and compared X% continued the from quarter, and let's to customers a non-interest reflects of record levels take estate achieved but advisory XX% XXXX. services a income delivered changes the underwriting first both look at solid expense. potential to Fees from revenue securities markets prior placement Adjusted M&A also increase Capital quarter and and tax another
we markets to activity While the of remain pulled year, solid forward. remainder revenue some expect was over the capital
over share to continue Mortgage XX% we customer average, generate revenue expect $XX impact capital improving $XX and the ahead, of experience. was on mortgage strong valuation. as the increased quarter impacted both quarter by setting Production on stage the primarily MSR for we sale for year, another were another seasonal to of Looking agency on Mortgage Service gain the growing charges the in the prior deposit income markets XX% favorable excluding over DVA. strong income. our year range quarter, driven and quarterly balances. prior million CVA by to and focus increased negatively declines up market and million delivered
enhancements believe customer practices likely benefits as well below pre-pandemic our service from to changes in transaction we as and posting are levels. customer behavior improving, While overdraft to keep charges
increased expect the XXXX approximately to spend. XX% of will charges be card we XX% offset account compared we and impact XXXX, to prior will remain grow have changes growth, below recovered continued to partially up ATM by levels. debit fees by Card compared but estimate driven Although, these primarily the year XX% XXXX service
we timing and modestly prior this to adjusted dependent PPP, compared be income changes and with expect growth. But of total timing XXXX on interest will year. down rate loan the in combined to the XXXX the amount exceptionally Given forgiveness revenue performance, of be strong fee loan
primarily seasonal incentive we the by move our compensation payroll focused driven compared X% a decreased taxes. improvement non-interest related salaries to which expense. X% mortgage, in offset as and on remain increase to in continuous Adjusted on by Of quarter was Let's process. base to quarter were lower non-interest note, capital markets fourth expenses lower the partially
X% closed count our Associate Capital decreased quarter-over-quarter X% head year-over-year. the down And head impact count April excluding X%. that X, Ascentium acquisition was and of XXXX
expenses, to the million investing we continue perspective, XXXX stable to non-interest in operating the modestly. technology, portfolios. basis Non-performing to expenses a Annualized grow asset to pace in recovery, improvement to services with continues and to We generating points products over quarterly And will From range. remain expenses face people our compared we across delinquencies, $XXX we credit committed XXXX, remain In regarding million time. quality better $XXX charge-offs while the to manage most net loans, non-interest adjusted XX point expected. while economic adjusted business. basis positive were business of improvement uncertainty expect leverage than prudently three an declined perform broad-based over all prior overall total loans reflecting quarter criticized
X.XX% allowance XX total credit declined basis of loans. total and Our losses points of for XXX% non-accrual to loans
performance March. provided our including allowance the for, trillion in losses our Excluding X.XX%. economic reduction stimulus The was and credit impact improved resulted outlook approved $XXX credit allowance benefit charge-offs in PPP the The reflects of loans, allowance in provision. million bill stabilization previously $X.X decline in the the a net to for
Our remains losses economic certainty of allowance path the and one against depend group the the or our with modeled the highest respect to timing of peer stress as levels the as of in loans Reserve. measured charge-offs Federal will period-end Future of recovery. allowance by the on greater
we performance forward, are look year. for optimistic regarding credit our cautiously we As the
XX on estimated common full points. is net respect peak While basis net to this an basis Tier equity charge-offs X we year us volatile capital expect With basis charge-offs our XX current to be approximately XXXX and based increased expectations points from we XX.X% range quarter-to-quarter can quarter. the XX to behind believe points ratio to
XXXX. are restrictions XXXX beginning required the capital distributions cycle these through participating. third of quarter quarter to above their also subject the aware, remaining The As firms in expected the to ongoing for capital on second the levels Federal Reserve be extended you lifted indicated CCAR restrictions in are Federal Reserve
distributions SCB year's above in into required beginning back to we the levels levels capital remain Fed We have should opted third managing test, the this quarter. against stress and capital the CCAR in be requirements assuming
share Fed's equity for we to of we is X goal common to to to quarter to business, internal the managing second stress midpoint However, our amount the earnings-based the and X.XX% operating repurchases to framework run in time. Based begin restrictions. our Tier our updating testing of with our X.XX% capital a need on are subject over plan range the
well is questions. momentum quarter Capital optimistic our up Pre-tax we XXXX into of the expectations, the our for already your markets. So next we In good solid strong. pre-provision and we're and controlled. feel addressed. liquidity quality anticipate the really continue in XXXX. the to on recovery are we prospect Credit slide income economic first remainder have the happy outperforming expectations. which that, and take are summary, Expenses carrying to about our about results remained are wrapping With
