John. Thank you,
balance the with start Let’s sheet.
industries. utilities, inventories to by expand their this growth driven again rebuild Average financial reflecting high-quality, X% loans Average growth services prior increased broad-based X% and loans lines clients accessing Approximately quarter, retail increased trade businesses. credit of and the XX% their to the and sequentially. compared business existing across expanding was
and pay-downs exit Average offset portfolios. runoff in home consumer as in increased partially loans Interbank X% and growth continued was equity mortgage by
approximately loan ending XXXX expect X%. to continue we forward, growth Looking of
combination growth. deposit perform deposit as billion to lead by of remains to with rapidly of of balances indicated From interest that billion and likely begin continuing rising base competitive and Previously, strength generate $X deposit deposit largely a $X declines rates would a net standpoint, before to surge midyear advantage we normalization our to would deposits expected. we
in we turmoil appropriate. industry, continue in events that banking range is created believe March the to the While
end However, we may the as of midyear. be range approach at the higher we
and The deposit outflow deposits, $X of prior billion to early outflows quarter occurred reflecting preponderance this from our $X of activity. in the corporate seasonal expectations. line with normal March billion were Approximately came
higher balance came other behavior continuation a certain wealth from billion $X rate-seeking consumer The among of clients. and
that environment also characteristics same in advantage a to systemic our helpful deposit are contribute rate a The rising of volatility. in time
and instills a funding high base focus and our stability. drives diverse As on and noted, with loyalty attracting primacy deposit John granular and retaining trust
let’s interest to and net shift income So, margin.
in continued Net margin increased funding XX the rates profile a billion income quarter, with first grew and $X.X linked expand quarter interest income asset-sensitive and our to points Net to interest stability. X% market X.XX%. net record interest to reflecting interest basis
loan net rate of As floating cash at of rate end is market generated by loans interest turnover the elevated maturity income Federal and securities supported and the the higher interest through nears from rates cycle, low-yielding Reserve its yields and tightening fixed the asset pandemic.
XX%, the that in for At Regions XXXX a provide repricing unchanged, a composition XX% year-end. by cycle, industry. costs our we rate accelerating expect and deposit competitive remixing our full-cycle our guidance remain The broader Importantly, will to confident for deposit remain beta trends deposit through cycle-to-date beta the this expectation. and when compared meaningful within is We is recent stage advantage
curve, market of XXXX projected between midpoint range. to nearly grow forward A stable projects push net cuts in the by rate Net funds when supported the end the income upper of to to interest in XX% interest income XXXX. compared yield basis Fed March range is would The level XXXX. points of XX% which and is XX the XXst
is The XXXX. in balance net today’s margin added sheet interest create source date important to a hedging stability environment. profile of earnings program uncertain our Hedges an well-protected through
first extending three that XXXX and a generally quarter half of received XXXX Forward XXXX. effective in have the starting on fixed beyond and of term will become focused in protection Activity swaps latter the years.
addition exposure to rate coming limit elevated, margin the move balance In to rates over years, rate if net caps billion to towards pay end collar of interest X.X% The constructed swaps, market resulting added margin we range high our to above rate a deposits rates X%. a the interest of forward If projected range remain floors sheet support strategy, X% back net extreme to to starting even until remain interest $X.X for is is the selling movements. fully reprice. to
offset prior other markets categories, a offset as service income charges fees. expense. slightly in and increased and Adjusted fee ATM as declines primarily modest and noninterest from fees. declined fees declines So, at charges by in card let’s in take higher treasury capital management X% look wealth management the overdraft were quarter increases revenue seasonally income Service and
adjustment, impacted by increase CVA interest refinement higher more in as long-term impact debt and loan credit reward CVA rates. underwriting lower and markets, negatively reflecting million the have securities in and $X capital and syndications, negative rates, in markets methodology. offset Excluding did M&A capital increased fees DVA, a a X% spreads of estate We in volatility our were fees reserves, commercial million well ATM and Card by driven and real DVA valuation declines redemption as sequentially in than $XX growth swaps. as a
X% full With XXXX year respect to to we and to first up XXXX. compared adjusted our outlook, be total X% to incorporating results, expect revenue quarter
increase increased and noninterest industry-wide insurance expense. the benefits the to noninterest announced primarily and merit reflects previously payroll due assessment schedules. to on quarter. Adjusted increased FDIC move compared seasonal increase Salaries Let’s rate expenses assessment in in X% X%, prior to a taxes. the
adjusted XXXX to expect adjusted In the to expect be first than X%. up expenses to prior We the higher contrast generate half we XXXX year to of X.X% we two X.X%. half second And expenses continue approximately to of expect operating the positive leverage year. adjusted noninterest now to be years, full
continues performance quality million, decreased. ratio $XXX basis were an credit and standpoint, Net the quarter. business delinquencies in loans remained as total criticized for expected. unchanged charge-offs From expense increased points XX asset while loss while loans X.XX%. Provision at to normalize was overall allowance Nonperforming the services credit
with primarily increased worth historically changes levels, recent most reflected outcome exam Shared the the for to Credit troubled and National the credit allowance associated is accounting debt of normalizing offset noting loans. elimination the is amount partially The reduction of the restructured economic low by It a in due results. from of our
to real total $X.X vast XX% includes is I owner-occupied speak investor want to Since unsecured a estate have of deliberately our few of real and within billion which our trust. this and the commercial we exposure to exposure, exposure our excluding $X.X investment estate real estate of majority space. At billion to minutes of diverse. loans, is XXXX, highly This it portfolio. take limited quarter-end, totaled
liquidity with to and REIT grade. generally have leverage classified clients low strong investment access Our as XX%
loan-to-value the $X.X XX% Importantly, A with with total weighted was XX% we stressed The loans index consist of of XX% with an office the weighted property located XX%. of originated X.X% note, Green total represents portfolio at approximating using the the book to resulting within of a price average office approximate Of Sunbelt. include discount Class portfolio average just properties billion. have and Street commercial the loan-to-value XX%
tenant. our of is single portfolio office XX% that secured noteworthy also is It
are carefully industry. weather the to believe monitoring able we weakness be will the While we conditions, in portfolio our
Including first ratio now charge-off points. year to basis net be our full XXXX we expect XX quarter results, approximately
through-the-cycle pickup pace basis uncertainty range XX charge-off may of economic of to time. points in annual a towards recent the Given we and normalization our volatility, market see the XX over
offset approximately ratio the points capital into earnings, capital equity partially million a and common capital. CECL quarter X of reflecting $XXX by the regulatory we estimated or at phase-in a From Tier standpoint, loan X to continued growth generation basis with solid related through X.X%, ended an
over macroeconomic levels modestly conditions, at current anticipate we term. the or capital and near uncertainty, above regulatory managing XX% Given
closing, in despite quarter conditions. So, first delivered in results volatile the we solid
on economic We an the well both withstand of array sheet to are have of and positioned balance diversity and balance sides conditions.
some in the we remain will we vigilant our of in country. are customers. stability to source of of contraction, while a indicators to market continue to be strongest And markets potential We the
Credit and remained remain income broadly well strong. and pre-provision are remains Expenses Pretax capital levels liquidity stable, controlled. robust.
the of call. the to move we’ll that, With portion Q&A
