Thank you, John.
of Let's growth quarter, ending that increased the X%, Average should start back sheet. our with begin view loans loans stable the in remained loan adjusted confirming the balance during adjusted the although half year.
new XX% loans continue reached liquidity, by quarter in have accompanied another in On increasing we during an while by impacted mortgage low to strong increased an reported pre-pandemic loans of a growth late corporate point first in that and quarter. and reflected remained and quarter June approximately Consumer card. rates the basis, now be credit total pipelines XX, average acceleration we Through believe production and XX% ending with utilization PPP loans modest corporate inflection reflecting approximately loans compared the excess commitments to Although renewed rates have forgiven end. anticipate production strong XX% quarter. by declined surpassed levels, forgiveness year loans PPP ending been of utilization reaching
low XXXX continue be portfolios to be acquisition. impacted low expectations, Overall, and adjusted single we by guidance pending grow average EnerBank loan single by negatively loans respect not However by of equity. to from our home rest compared and are digits. we continue expect impacts XXXX, we run-off any although the in to downs full down including loan loans to our further With consumer expect to pay to adjusted ending digits year balances XXXX
So let's turn to deposits.
increase was new due slowed, account Although, balances. higher balances to to The primarily to the quarter this increase deposit of record levels. has pace growth continue
mentioned, we're new also strong growth. John producing as account However,
increases in think further accommodative. the liquidity liquidity future speaking, Reductions analysis system, as believe curve time growth. to XX% of the in probable likely becomes deposit future which continuing will will Broadly over inflow purchases sheet. we on should and pandemic-related increases the Fed behavior We based asset and analyze deposit normalize mitigate of we their are persist XX% currently on deposit balance will deposit less characteristics, between
continue Let's reported shift impact prior to during remain billion net $XX Cash income a PPP margin, and and NII XX by Pandemic-related quarter. the averaged to margin. the PPP, of with $X reduce second Regions. NII when points. which from quarter interest source increased quarter, items stability significant million and margin combined related for basis
day hedge the context is further in beginning total not higher roughly Lower levels, income. Excluding of NII of $XXX rate and attributable the in excess and continually in cash of balance the active million each near completely was additional prior billion flow have low adjusted linked dynamic current a of the repositioning, X.XX%, currently this was we margin. The $X expect interest rate point at Similar environment. which a swaps X the basis NII Since margin evidencing of cash billion the evaluated a $X.X balance interest and costs support rates lower mature was quarter historically by one drove management of PPP, management expense and $X strategies, LIBOR XXXX. balance long-term decline quarters, of million sheet. hedging at of to to a until any purchase our however, both floors. despite we hedges mostly expect repositioned and to quarter, quarter sheet XXXX, income efforts We offset from impact securities increase do on zero sheet from of hedges, -related deposit the short-term loan begin
to sheet current consistent goal Our growth. balance profile support earnings our allows sustainable us of
the stability protecting from we in NII currently Specifically, market higher interest the benefit [ph] on to while than rates are short-term interest and future, the tenor remains extent rates to positioned middle Fed increases longer expects. in hold the
of maturities we six less impact to With the a Importantly, a of NII basis to be most shorter has rate than respect quarter's for maturity of years, fallen declines point recent earnings yields on low has market as longer that less. the have second potential on production fixed our view the point curve outlook, of year. on an relative Regions'
Over a expected growth strategic impact NII beyond, and rates balance organic drive growth. neutral the a second half relatively and strengthening from sheet economy, ultimately to are and
to XX XX slide the on, we Before to liability be that appendix helpful in information moving which through management think investors. will additional provides want I asset highlight
from non-interest results the in X% quarter but fee markets increase to second return take expense. experiencing two X% Now, let's quarter, compared decreased reflects record to a the Capital a and XXXX. Adjusted quarters. after revenue look of at prior the rate a income prior run normal
of we income CVA income and ahead, sale million and capital to expect a impact around Mortgage revenue management also contributor, average, to fairly be expect the charges recorded prior million particularly volatility. performance, quarter. We that three generating business to quarterly favorable increased Looking second Wealth markets on strong by $XX DVA. believe second to the primarily in market additional production to and conditions. quarter-over-quarter the gain has excluding half compression market pricing hedge timing and during and range compared due stabilized quarter-over-quarter primarily with reflecting decreased on strong the days. remain consistent revenue $XX increased quarter the driven Service
service XX% overdraft have to our customer primarily which fees to pre-pandemic spend, compared growth, benefits increased card XX% footprint, as we customer appendix below grow the by XXXX We increased debit compared transaction well credit and approximately benefit both remain believe ATM quarter, behavior charges keep in levels. While to driven we Card and to activity changes below strong enhancements likely will as continue levels. XXXX from but levels. XXXX in up charges practices improving, from exceeding prior the XX% our to economic are highlighted posting estimate pre-pandemic service reflecting in to now and
rate [ph]. Given the interest of timing
expense. move Let's non-interest to on
payroll markets strong decreased legal lower than compensation, the offset performance, other non-interest exceptionally fees, particularly to anticipated compensation, an is in capital contributing increase merit driven partially expenses professional in and by by quarter, incentive primarily incentive and expenses. adjusted While in marketing and credit X% taxes higher
up with the Non-performing the products $XXX expenses XX we annualized XX while delivered We standpoint, Reflecting the business. quality all technology, business committed time. to strong be net perform non-interest generating credit charge-offs values, expect during loans, adjusted will recoveries improved with to prudently asset expenses better asset $XXX decreased associated points. as than In to remain across From XXXX XXXX, and to our leverage delinquencies expected. million to to basis manage performance loans collateral operating expenses range. million investing quarterly in services during stable strong non-interest quarter. over criticized to points positive modestly overall we compared in continues improvement And adjusted to quarter to total portfolios people continue basis most and an broad-based grow and we
Our X% of XXX% of declined XX losses loans. and credit non-accrual allowance total points loans total for basis to
resulted credit trends outlook million in a better than continued reflects allowance allowance in Excluding for credit on was PPP reduction loans, constructive The losses the provision. expected economy. the the a The $XXX decline to net our allowance benefit X.XX%. and
of above will to respect range of from equity loans allowance Based tier with to this quarter X.X%. increased repurchased capital recovery. approximately on X the results, now period the second of on the X.XX% common to through million the stress as median quarter third year XXXX losses by to equity the the against for respect XX.X% peer and the basis certainty X the shares Our as Future midpoint XXXX on And depend XX remains the points. basis an Based our over XX the Federal expect test conditions, full points operating our will allowance fourth path basis charge-offs common quarter. ratio time. timing measured charge-offs buffer managing With to We common our modeled end X or to during we levels of Reserve. requirement quarter. tier to remains capital, range recent improved greater goal net the with economic XXXX of market stress be X.XX% preliminary estimated stress points XX
dividend expected further in quarter stock pausing week, share. year However, a range the this our to quarter. closing of back date $X.XX CETX quarterly increase to and temporarily we our the expect fourth midpoint market the manage operating being Also until EnerBank in We by are Directors share anticipate earlier end. in fourth the declared to the to our Board per repurchases XX% common of
very the So, Pre-tax recovery slide economic expectations. remain are are next strong. income wrapping second are we're optimistic the quarter and as results which continues. questions. our with and we've the outperforming solid, happy pleased summary, up markets. for our on growth we to quality Capital XXXX our poised is expectations, pre-provision already are Credit about take the and of economic in Expenses your that, we're controlled. are liquidity In pace well recovery With addressed.
