morning, good and Curt, Thanks, everyone.
to X, decreased million. $XXX loans average Slide Turning
As Curt Services as an million very auto challenges. due National $XXX mentioned, Dealer the to are biggest levels supply in decrease inventory chain driver low was
back year. and XX%. coming the next plan reached higher down levels return over bottom quarter continue. declined record the offset to normal to the approximately and note, purchase-related our in years, Of volume more refi year. are to was last rebuild was to purchase loans $XXX Looking is two few of compared by Seasonally XX% at $X expected that volume off sometime than over We inventory Mortgage industry of months, believe lower million, the levels the were end volume, start at which should floor to close slowly billion. we Banker next the
up, in Commercial Corporate and activity to begun General Banking. hand, Entertainment, including Fund several Environmental Estate, other Real other pick Services businesses Market, has Middle Equity the Services, On
the loans as during decreased far little million a As over $XXX average PPP, quarter.
of on basis, However, PPP the quarter. billion declined nearly period-end as process forgiveness loans a the end at $X accelerated the
Total Services to end Real General due Estate, PPP by loans grew, Middle resulting Usage Middle line million dealer. Environmental in also increased decline commitments offset and utilization holding with in led steady at the loans, a in by Market. decrease loan partly in billion, lines Market, in Commercial most increases were period General business up $X.X XX%. $XXX Excluding growth
on and first grew Average the stage quarter basis other fees, PPP the residual and significantly. growth. as Loan offset bodes quarter in loan basis points, accelerated XX closed despite the increased yields This the billion, including from future last commitments well for again increased during pipeline new the increased the all-time in deposits a average stimulus, strong factors of XX each basis increase. Our drove pipeline to shown All strong deposit adjustment almost for portion from our deposits level on other. fell total X basis quarter points $X.X of impact X forgiveness. loan fees record basis the points portfolio. to the climbing lease details including provides of X generation to deposit basis the growth. and funding XX% fiscal first of With reached X points. Slide growth, from on cash cost recent full an our points, quarter only of X X. deposits costs the XX%. of with Non-interest-bearing benefit low of interest-bearing strong accounted The The along loan decreased ratio securities a points the Slide our decrease
seven result increase the slightly During and of in the net have the $X the well maturities was approximately six average MBS our as a quarter, maintain second purchases yield a continued MBS to we basis and at end MBS to of level increasing points. same billion of as of the of the since size MBS yields XXX at By proportion a of basis years about portfolio securities off over mitigate portfolio purchased compared securities which the period resulted and X.XX%. some of in XXX This portfolio in The years durations liquidity. XXX rolling about in we $XXX $X.X year-end, higher by of to $XXX the rate had to quarter deploy able replace MBS. million been income. to about million billion in $X treasury prepayments headwind billion approximately to excess and in points, decline
the gradually to and is offsetting reinvestment increasing pressure goal opportunistically lower portfolio by size. continue from Our the yields
first including residual by million X, income Turning increased lease net large adjustments in interest the in the offset residual million, stable from was $XX lease The as $XX excess was to Slide the recorded interest increase the margin the net adjustments impact quarter. liquidity. in
a which net the had points increased impact. from The mostly remained which portfolio the impact lower the basis approximately margin. to day the modestly on the as to benefit additional gross X This an One million securities on basis far adjustments. over interest of Fed larger As by basis billion and deposits points. details, lease was high $XX point margin. heavily million due residual in $XX $X $X loans on Average yields. the and Fed the and income balances primarily at interest X related, added million XX X impact a and of margin. the non-accrual added weighed $X had the $X impact interest primarily million offset balances $X quarter the was a added margin, million nearly securities increased Lower recoveries, extraordinarily with negative had PPP billion basis and loan X LIBOR million and and lower added to point fees,
in sustainable growing metrics, business for prudent allowance criticized our levels. close gross in relatively points management combined credit related loans. Of Strong of the as charge-offs and and are to decrease credit Continued XX increase and were very now recoveries economic quality resulted of loans note, comprised only line than help high $XX our segments to a Non-performing of social Also, every million. with a growth, pre-pandemic million. combined criticized added margin. shown was $XX basis X. had we distancing level pricing the in strong portfolio at Also, a on $XX with losses. well slightly in recoveries $X in Credit an perform assets decrease prices, and million, net $X in in of low X of non-accrual with continued basis as from remained energy recoveries Slide of declined as nearly to point expected. significant loans better deposit million to of decreases million Net oil the decreased confidence
of continue apply economic we these severe However, more both areas. to to forecast a
over on Non-interest ratio a primarily derivative reserve well or set new total highest comp to in March by five asset as million a we quarter in equity Card returns increase in ago, acquired years, X.XX% at income income fees, increases, trust $X million Commercial million Slide PPP the as X.XX% Fiduciary economic merchant also due record trend driven or syndication higher we've $X the seen the to lending million $X commercial quarter. increased spurred decreased Our and a are well over a five over quarter a X% fees excluding relationships. an the $X year by and due increased positive service to customer a stimulus, $XX with business adjustment or benefit outlined compared were was increased as first benefit $XX quarters. continuing the consumer in loans. card fees we've in extent and and full have expanded Deferred these advisory million than non-interest increase from and as $XX first $X lesser last to $X performance. These seen all million card to healthy valuation expenses. primarily as benefit the XX% change behavior is XX, offsetting level million mainly income are very customer fees. tax activity. offset as in changes annual a the market of in million credit increase, Partly the million there government
Aside change, activity derivative remains from robust. this underlying
strong BOLi pleased warrant income. million. fee another quarter, with $X In are we for Following in first $X million quarter income declined the performance strong decreased summary, and
outside level. up advertising $X revenue As were pending matters. quarter. of the and expenses shown and incentives, elevated higher in the to cost merit, in operational million $XX a line Also, as tech-related processing was an in which a a million seasonal more were with labor, primary well resetting stock annual compensation first in mainly higher quarter. a litigation decreased and $X as on we related resolution had taxes partial performance-based due and The legal normal increase increase losses, million in deferred certain XX, in Salaries comp. drivers Providing benefits to increase returned to offset annual Slide payroll
end capital well Slide XX target, that expense share sitting as are above invest we details for program maintaining to With April. on the million $XXX our to continue the entered CETX for repurchase our management. into provides demonstrate future. we strong our we committed an at of We accelerated discipline
repurchased shares June. also million an additional $XX We of in
XX% Our make of watching continue and and capital ratio XX.XX% towards is CETX to trends strides an to target goal loan CETX estimated our our carefully growth to while decreased generation.
quarter. a very maintained the Slide our second currently addition, we is second have above expected In trends which relative for dividend X%. outlook provides yield, year XX for the competitive the half yielding to the of
middle due by expectations continue CapEx and Banker as increasing and will we loans, most businesses, growth This market and is PPP by modestly capital Of decline refi expect robust note, we lower to in pipeline supported to that the Excluding grow. working our led a loan seasonality. Mortgage economy result of will volumes believe needs.
we we get close bottom a is addition, Dealer inventory as closer to year National as levels In end. rebound expected to are to believe auto start to
as PPP loans, to is far As difficult predict. it
repaid we However, up loan pick be continue bulk should by forgiveness will expect and to the year-end.
expect to maintain Customers We strong. excess continue remain deposits to average balances.
they However, some at the will work. cash we point, to believe start to put
We additional expect days. excluding interest income growth, to net from and loan benefit PPP
than However, decrease to we in strong. Credit be believe remain anticipated offset by quality PPP more is the this will loans. expected
move the current pre-pandemic economy continue the believe allowance should to levels. in towards we Assuming remains path, the
along conditions, relationships. We with focus expect benefit fee attracting to our customer enhancing on economic strong categories to customer-driven and continue from
are benefit wane. than lower be as truck and by government activity growing to card card as the from volumes corporate payments stimulus However, offset could merchant expected fees decrease more
In somewhat expect year-over-year basis, there were addition, the we preparation On which half. quarter solid in see were the categories fees deferred to such a fiduciary comp elevated to second is second difficult the in as growth predict. tax to due that and quarter, also second
expect as to higher Certain decrease. be items such expenses line entertainment. advertising and should travel and We seasonally occupancy,
to invest are typically In do year. as rise of addition, the second technology they expected in to for investments continue half as we future, the the modestly
offsetting of comp However, repeat. we more expect these second expense not levels than and deferred quarter litigation-related will factors,
repurchases. share slide, Finally, to we continue indicated plan on the as previous I
back Now, call I'll to the Curt. turn
