good Curt, Thanks, everyone. morning, and
averages. quarter. average growth five. drove slide almost balances utilization the X% below Loan but historical X%, selectivity commitments and Turning a slight just as came Increased in increased decline remained first to from above in increased expectations
years over the business commercial real the of over be addition largely $XXX to our estate last to payoffs. pace projects, multifamily million driven in two of industrial and continue in by slower of originated Growth construction
significantly and have Recent declined. activity pipeline origination
intentionally is A Class highly real Our office strategy limited. selective projects with a on estate focus and remains exposure commercial our
core corporate million as customers. customer continue and pre-pandemic levels. Dealer and grew acquisitions from remain Large financed while grow, below customer we new inventories $XXX Services acquisition relationships benefited existing won National plan new for to loans they
a finance million $XXX loans. increase average resulted second Typical banker mortgage in seasonality quarter in
However, strategic expect to banker off XXXX. we exit most of business, the balances our that of consistent with mortgage of end by paid our be
recession mid-May. stable Conversations rates. of six broader balances industry continue with trends the declined since from activity to Slide refocused quarter, Throughout on in as relatively risk customer observed provides Average and overview X% an banking macro-economic for such our the as line stability quarter. deposit deposit customers balances and away of elevated deposit normalize we expectations. issues pivoted
to and competition deposit drove increased points. pressures interest-bearing costs basis deposit funding XXX Industry
feel approach relationship However, maintain betas us protect to forecasted and we our and balances. dynamic allowed pricing our deposit strategy
further environment view providing deposits, our funding While as advantage a deposit stable to and continue our mix noninterest-bearing pressured cost-effective than rate the more a we peers. source competitive
to treasury With other products national we opportunities and strategic investments underway payments to time. further small over profile attractive our to strategy, improve management enhance deposit see in business banking addition our
on position maturing shown As provided repaid remaining capacity We advances, our maintained increase. cash, our excess seven, liquidity flexibility. liquidity slide and strong FHLB
still quarter-end in are keep that to quarter and mid-XXs our was year-end expected XXXX. in at ratio XX%, average second loan-to-deposit below XX-year the Our ratio the announced strategic actions
unsecured $XXX million levels remaining and the manage to very this due maturities and us balances company cash flexibility repay Cash at debt holding to time. position funding create needs summer over funding light our
mark-to-market on slide maturities our downs portfolio Period-end a negative eight million and in declined balances million almost adjustment. $XXX pay $XXX securities with
and reinvesting the entire XXXX as and our Our we transparency security as of unchanged remains in quarter available-for-sale flexibility. providing full stopped third portfolio we maintain strategy management
scheduled are of to our unrealized XXXX profitability liquidity, and the through and benefit maturities projected losses Although within AOCI. repayments we have modest year, larger end treasury XXXX in the
next a two improvement unrealized in expect the years. securities Altogether, over losses XX% we
and As our portfolio not any impact unrealized enhance is do losses pledged need we our liquidity therefore position, income. anticipate securities to to sell not should
one more Net shift a impact funding, mix slide in day and deposit interest volume to expectations pricing. were million the benefit wholesale million, lower and to decreased offset of line $XX deposit with by Turning nine. balances, income loan deposit $XXX the as of in
significant quarter management actions. and impact full deposit nominal. activity results A of was our those position, our reflect strategic the of portion a sensitivity the asset the late in of first rates so funding occurred of impact quarter, With
shown intend current on in a while position balance basis XXX basis successful composition execution of XX strategy decline our our portfolios, XX, us and gradual to on of or over slide maintain dynamics, favorably average and interest insulated time. to minimal points securities managing our balance our strategically rate exposure rates. the position sheet swap As with interest we considering sheet negative points By
XX. as recoveries, although net discipline do we increase slide highlighted another to Our posted criticized of not Once quarter produced again, migration credit proven excellent this loans. Modest trend we an project in drove quality on continue.
loans, well below they total However, at under historical X% remain averages. of
the declined million drove increased remained low and to provision loans expense million. the and continued to for Nonaccrual at credit Migration economic $XX outlook and losses $XX inflows X.XX%. loan nonaccruals growth weak allowance a
relative the Given portfolios real such environment, we increased estate our elevated leveraged exposure in business. and to loans commercial greater oversight as with rates
However, and we metrics comfortable be remain very to with these manageable. migration expect portfolio continued
and continues and quarter. already results income increases million to FHLB to to BOLI fiduciary growing dividends in income card. first in Noncustomer slide $XX outperform, growth Noninterest with addition customer-related contributed from strong in an on XX,
our first Although a and repeated income to prior Risk exceeded related the quarter as decrease to strategy on variance vary a should modest management hedging to not quarter, markets results. capital based rate expectations shown saw strong environment. continue as we
We over income expect in time. further drive can capital-efficient hard the we of in noncustomer income growth investments be predict, and fee While date. to results these about remain to products strategic our services efforts to excited
declined XX, a that not favorable Ameriprise expectations. estate first $X real million, write-down. a state slide on $XX benefited from netted related to million line with several tax did refund transition, Quarter-over-quarter asset expenses expenses Noninterest quarter in large the items and recur,
Modernization Seasonally were wealth FDIC strategies. expense other offset noninterest million by lower insurance software a our salaries technology in we of increased as processing, corporate facilities, being benefits incurred and and advancing and costs. management, expenses partially track $X were on and expenses, total efforts retail outside
while We managing committed designed selectively power. financial continue expenses prioritize investments earnings with prudently to commensurate results, remaining enhance to our further strategic to our
Slide above estimated driving profitability strong generation XX.XX%. our buybacks position. XX capital loan With further to our share highlights target growth, pause, capital our CETX from outpaced
including increased across selectivity the of of mortgage year. this actions, of portfolio, elevate and the the to expected banker capital exit the end are finance rest Strategic through ratios
X.XX%. increased Adjusting unrealized losses tangible our and in rates our the for our been swap tangible Higher X.XX%. AOCI, portfolios, reducing ratio to have securities equity would of ratio common equity impact common
proposed, regulatory Although our capital about yet we with anticipated not portfolio comply projections, and our ability and changes to been requirements. considering our support customers feel potential good very have size,
in change XX Our outlook environment. and for significant is assumes XXXX slide on economic the no
loan The of X%. to loan is project year balances banker into selectivity strategic average to third expected the full of increased finance relatively continue quarter. growth XXXX keep flat mortgage We and exit
average XX% first of of Our to of deposit to is and projected XXXX decline the year XX% last tightening events. began impact industry quantitative that quarter the year full attributable
half only Assuming continued expect year. deposit normalization the we and decline additional a FOMC the modest trends actions, of through of deposit second
We net year's to record X% last income of expect results. over XXXX, interest our highest year in X% growing
remainder profitability short-term the anticipate rates sensitivity protect impact they of of our rates position to will negative the is designed when strong high through remain we minimizing the year, Although by our asset decline.
expect manageable. continued remained remain Credit excellent we and quality migration to
charge-offs net first remain we forecast the our to to Given basis normal the two strong XX below through points year XXXX performance XX full range. quarters,
noncustomer and expectations year to Noninterest as benefits over maturing we normalize. from management X% dividends year repay rates and rates to declining expect risk income likely we XXXX. of income and income at full the the advances half to are but related FHLB X% expected exceeded grow continue, for first The to
we headwinds to moderate of first exchange income noninterest remains expect with half, the to year run the rate date. incredible income the Even we compelling. in derivative income, relative While to foreign levels potential overall performance the and strong from second the anticipate half
XXXX. of business size our expenses regulatory strategy are create and expected increase of approximately guidance. enhanced for X% X% investments to is higher expected result acquisition, to given to year-over-year and and compared pension expense benefiting prior that focus model compliance Noninterest expense the some are growth deposit and pressure Talent the our
timing we expenses to precise can be offset of for As third by largely although the other pressure positions be the look corporate filling this by credit quarter, expected predict. cost should challenging into facilities, type driven and open of modernization expense an the to credit
the that remains for the priority expected position is resume in balance expense will invest trend continue target Prudent we expense grow and capital our management further to believe profitability to our Strong we pressures we repurchases. as share a until with of future. need excess
to Now call turn back I'll Curt. the
