Thanks, everyone. Curt. morning, good And
Turning to Slide X.
was environmental loan mentioned, $X.X favorable our growth billion, as as just by driven factors well approach. relationship-focused robust, increasing Curt very As
As loan up utilization This to commitments billion, XX% million. million. included $XXX million plan a held at the services X%. in And steady over rate of $XXX National line floor $X increase $XXX quarter about Dealer loans end, were or loans increased
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sensitivity increased asset our monetize $X.X securities Average to our as X. continue balances billion, rates by growing Slide portfolio. as shown on increased We
repayments and repurchased MBS in we $XXX billion quarter, average XXX we yields of million. second had the with of $X.X basis During points,
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million floating points provision XX million non-accrual basis loans Overall, losses securities to rates the benefit net the million. Net the loan stable increased hold growth $XX metrics, case our of and our they basis for have issues, in liquidity a maintain had customers the $X Credit balance margin $X margin. Higher $XX in benefit wholesale and the to to we additional record and $XX added higher somewhat chain million. rates income securities million continued of portfolio outlined remained Strong interest XX well, a $XX a net unrealized loans growth rates quarter excellent despite allowance mentioned, low on be challenges. interest decreased a X.XX% While well. and added points and provided sheets Loan at the to loan million rates Fed portfolio perform and to debt on the $XXX interest One which economic as losses should lifted credit added no together Altogether, points. which available including as supply provided X, impact. sale, X a for to charge-offs. maturity, rise and quality inflationary mostly net I and credit added increased purposes, basis maintain The Higher deposits recouped. these XX $XX million And we income as only typically strong rate at the yields level forecast the relatively increase Slide net of declined in income. million. basis balances lower points. as labor offset a in on in loans was margin. at higher by size partly added million, the day Criticized weaker $XX of constraints and resulted our from for
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quarter expenses, Finally, deferred for deferred to and due stimulus-related $XX to negative year's quarter. of total million comp, million note, card last decreased the offset fees relative which to year, is the $X million last a $XX second $XX declined in return comp activity. million Of decreased
Turning to expenses Slide on XX.
to taxes, the maintain technology-related growth. moving stock the This revenue position added we million generation higher $X pieces. resetting with discipline million. tied improved of by payroll was Our $X Annual percentage our offset points Performance-based annual as incentives financial Salaries benefits future and quarter. we staff ratio $XX results our to number first merit, partly accelerates and million. and XX% to and increased expense increased efficiency labor impacted as which of comp a contract X continue strong insurance each for
mentioned state million. slide, very are Of levels note, such staff asset $X comp Finally, a returns attracting deferred on we and Operational losses activity. retaining in costs consolidation costs the tax our market. level, as consulting competitive refund. our and Certain equipment the technology-related increased first were stable branch increase as in as $X talent Litigation-related decreased million and decreased previous software a and quarter legal I the successfully were million. we occupancy received from $X includes higher, elevated
some experiencing are salaries, leveraging in productivity, We insurance. working have offset we and investments to inflationary travel entertainment pressure, been this headwind. hard to and particularly increase technology By
optimization. details The provides As XX as of management. which includes quarter. progress to are described, an initiatives, reinvested delivery securities to continue Slide and continue in generated which be expected ratio our estimated This alignment technology a savings the is we Curt a CETX growth journey retail X.XX%. corporate decrease Loans million on $X resulted cost we in in facilities on capital certain of make portfolio to evolve. modernization to totaled model, second transformation our banking and
near targeted CETX and the closely expect strong closer through ratio loan capital term We we generated retention. trends, monitor to to continue the from to over earnings move
always, capital support providing to priority growth, an our return use customers and while to As drive shareholders. to is our our attractive
a equity from as quarter our and in second of common swap declined losses result impact Our OCI the portfolios. of securities the
revenue for rate Excluding $X.XX. of the equity interest well for relative overtime. relative are impact third share changes we cycles, stream our To incremental for future very of rate short-term the on net quarter, quarter of steeper downside of of non-interest-bearing. expectations we in XX A provided the interest hedges OCI our loans previous quarter. curve and loan net as second sheet been losses, the increased rates, as interest provide second XXXX and hedges We market as Therefore, update balance added earnings the as in curve about June in reducing activity while, to outlook. have majority through the forward a sensitivity. expect relative reacts income, the importantly, to deposit remainder and per income to to have and lock demonstrated deposits by increase the increase approximately to rate our sustainable rates. a to interest XXXX, to in to The rates were our expectations now in for the floating adding provides short XX% XX% the outlook an to slightly quickly year. the XX potential provide more an common our Slide In used decline bulk order
are there dynamics many of specifically deposit changes that differ, may loan and pace betas activity. course, the in cause Of results short-term to rates,
XXXX a current outlook Slide environment. Our for XX economic on assumes is continuation the of and
year, inventory. the expect to with draw continue to Given half increased customers' increasing partly rebuild the by average work we expected the down expect the to like areas seasonality. grow loans middle first saw X% second they the trend are Relative our Consistent that this we to so far excluding impact we stabilize. loans In of expectation year-over-year, the the will X% the to example, expect certain to X% year, robust broad-based of quarter. customers loan in loans. utilization market, for average typical X% year, generated growth to quarter borrowing Fed's our we we deposits. to grow be Also, is to fourth increased PPP second their tightening half quarter, as for In of we've needs, per offset
the As closely rates, far monitoring to as customers. we our close are and environment staying
We expected moving as second quality the and towards interest year strong. the increase. on expect half continue remain slide. the in rates to of our start were beta expectations previous reviewed to income interest historical is increased Credit to Net rates deposit
levels manageable, remain our was end current our that the a believe expected We and for on net appropriate XXXX year-over-year warrants, environment. the range on low to record is loans could included the of compensation. of Recall expected to Non-interest to derivatives, that and continue XX basis. to trend criticized to highest are fees stimulus-related of elevated and expect non-accrual and begin challenges remain to and we X% X% to income macroeconomic the card Assuming reserves decline basis XX charge-offs deferred points. lower normal
consistent quarter. and third to be expect with We the fourth levels quarter second
predict, not strong Following by difficult we on fees, second some may comp, fiduciary. activity is derivatives expect to in therefore, which deferred be commercial pressure and we This will the repeat. quarter, offset lending assume
half to higher performance-based expected increase is partly X%, annual insurance, driven to to deferred is excluding performance-based due expect to inflationary increase expenses to to year, modernization to and primarily first second processing comp. notable our any modernization-related pressures. lower of outside excluding technology and and year-over-year, offset year-over-year the the staff business X% merit, expenses expenses. We is The by half increase X% related X% expense, This higher increase by program. merit, investment annual compensation, comp advertising, investments the Relative
of to is million expenses to half $XX year. the not first repeat, comp second from up the Excluding benefit to the expected deferred half, are which in expected X% in be the X%
the of indicated for we we are generation more on higher loan hedging with the by partly We as in on as strong I monitor expect higher our revenue benefit our our has of and rate improved In CETX rates, fee XX% items. our discrete execution expenses full income XX% trends. performance. strategy, outlook financial conjunction including robust and growing with loan year the previous offset to the focused be finally, tax And of XX% target the growth excluding summary, to slide,
I'll Now to turn back the Curt. call
