Average Thanks, decreased to slide Curt. $XXX quarter. loans everyone. the morning, X. And Turn million first good approximately in
refi As first typical the fourth in slow very Curt sales strong home Mortgage following quarter mentioned, in the and quarter. decreased activity Banker
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CECL quarter. adopted first We in the
ultimate high well us use stimulus economic regarding allowance. government we degree of as the effectiveness the purposes, determine packages modeling inform pandemic, a we as XX to is forecasts uncertainty as March through the For the payment the economic impact There deferrals. of and of
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GDP XX% second forecast XX% declining in the from to This quarter. anywhere includes
that note of and with It is non-accrual important low to levels criticized loans. to starting cycle we're very
the you basis aside, $XX table, XX energy points. charge-offs or only can see million As in were net putting
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of as of complete approximately Spring complete. XX. X% XX% March redeterminations And yesterday, were as
So, we very process. are early the still in
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our allowance for increased in loans We've these areas. allocation
a Curt stress. fundamental strategy losses a we mentioned, portfolio, minimize well-diversified which credit times during of part maintain help our of is As to
This returns Recall deferred XX and activity. in offset non-interest is included million, $X which impacted $X decline was asset a of non-interest slide income, last quarter. to million expenses. comp by Turning from negative this non-customer
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in reduction Seasonally partly workers healthcare a deductibles. payroll and met higher as these offset contingent we yet addition, employees have insurance seasonally most reductions. taxes In had lower their staff not
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as ratio, remained – continue to which costs XX%. solid by We under carefully our manage at XX% efficiency evidenced
environment, the and liquidity of us light approach our well In current conservative to customers' to capital management meet Comerica's positions needs.
Slide XX and position overview liquidity base. of an provides our strong funding
to are sources, relationship-oriented funding non-interest deposits. bearing our of funding deposits, multiple XX% We nearly have half coming with ample which from access of
draw available Fed. At Through Home approximately at quarter-end, Loan very on the attractive deposit rates. to we billion Bank, Federal had $X have the we $XX at almost billion
held of gain $X $XXX billion had accumulated unrealized securities, of mortgage-backed we and which liquid unencumbered the of million. securities over treasuries in pretax form At an quarter-end,
Finally, we the as grow deposits have discount in window access the if Fed ready to necessary. well as at
levels with strong, capital of Our an as remain XX. shown the on X.XX%, slide CETX estimated
elected providing we of CETX points to the provided a to CECL, basis meet attractive of In the in the Note portion the million have share of to transitional suspended increase first and an shares. that dividend shareholders, month, per quarter, we repurchase as of total requirements including benefit on we to XX returned adopting $XXX Last $X.X focused we a a customers' capital repurchases financial ratio. million dividend. an the estimated which impact defer deploying to and $X.XX
As we capital current strong. navigate levels remain we environment, our expect to the
quarter first the it expect when ratio, we While below XX% target, our CETX return this to improves. is our level to economy
second relative the Slide first XX quarter. for the provides outlook quarter to our
recessionary We increases decline assuming significant in conditions, unemployment. are including in a GDP and
feel to stimulus, as impacts providing outlook degree government a of we comfortable as the time. the uncertainty pertaining not COVID-XX, of the Given high at economic this full-year well do
with spring support continued lending We we customers' expect Mortgage Banker we advances and line needs, in Also, Protection volumes. elevated average to to usage the Paycheck increases program. due as strong grow, loans to refi sales liquidity under home Plan expect loan including government's continue
we of requirements. as reduced Partially CapEx financing result lower capital anticipate have businesses offsetting needs a working to this, and
be using needs. We conjunction high and customers by expect stimulus in to We business offset meet distributions program. receiving cash will under growth average deposit customers the with conserving this funds mostly operating believe
income the effect rates This our second from lower impact we've net The with interest expectation includes to the actions to relative the expected combined be alone first in quarter full deposit $XX on based to million quarter net March Fed is quarter taken on cuts, of forecasts. economist's rates. the the LIBOR
is through depending remain to such results growth somewhat rate movements actual provide factors, headwind. relative a course, elevated quarter-end. Loan of will the which as variety offset Of vary partial in Fed funds LIBOR, expected to a to on this
at this the reflect guidance clear impossible highly it provide environment, therefore, is Credit time. is expected to quality makes economic uncertain, to and which
duration course, the the and resulting severity COVID-XX effects. of Of the is largest and variable
on Reserve recessionary was based scenarios. current The Federal
in However, are waters. we unchartered
CECL may cause our greater In in provision. addition, volatility
income non-interest government lower to with increase in card commercial merchant card customers stimulus expect higher as receive fees an transaction activity. partly We by from offset volume the funds, benefit and
the other reduction economic and brokerage On investment an derivatives, lower impact banking, a is and expected activity. hand, to fees market-related on fiduciary have activity in
in to offset and million $X assumed predict was negative is which the repeat. comp, not expenses, in to is Deferred hard a first is quarter, and
focused on closely discretionary expenses remain are controlling We managing and spending.
in to to expect rise growth outside in a see processing cared fees. we However, tied
as well providing not expenses related are and employees, COVID-XX masks to as facilities. employees rise for to compensation remotely, we've protect cleaning expect measures increased with we such taken of intense as to able Also, work who
insurance annual we marketing. seasonal increases staff addition, expect In in merit, and
on share customers' as far the the meeting and repurchase capital, As program as are slide, I dividend. well as an maintaining mentioned needs previous we've attractive on suspended financing focused
Now, I'll back turn call the Curt. to
