morning, and Curt, everyone. Thanks, good
and in balances the with impacted National We signals cyber elevated Dealers Dealer average Services some see Banking. the second August, in decline related reversal was loans the balances industry. the Corporate we're from of down loans saw to the X. on attack to relatively the of encouraged quarter to in in Turning Slide growth coming quarter but loans second saw Most that September. in flat
positive and activity. early pressured September more at balances look month-to-month, we in saw dealer trends quarter, As most were the
targets. saw we on return pricing focus as discipline Corporate businesses maintaining other more our Banking, pressure and specifically banking, relative U.S. than
U.S. consolidation. loan soft the the June Additionally, demand some and an loans group across improvement to relatively caused quarter XX. were late in flat banking bank period-end saw industry
is the increased, that Real utilization Estate continuation a rate Commercial of environment. to trend grew, in we Moving businesses which this have elevated seen
expect of refinance see into to payoffs an in down, as sell However, market or pace projects the uptick as come the intended. as rates we permanent
in carve leading to renewables great is and formed renewables this Growth Environmental focus. we industry. seen have unique talent and us a In we attributed expertise niche for XXXX, and Environmental new position distinguished Services Services was in us, our out overall team, results. a have allowed feel we to a our strong business
saw lower bps loan Touching X a on rates nonaccrual driver from and minor the lower we only drag yields, in was decline, short-term interest of the briefly the main quarter.
encouraged we deposits third across customer to activity. were Average late deposits in second most were the quarter time broker business X.X%, On Slide growth lines. due deposit quarter. increased Average X, higher by with activity
grew million. However, $XXX favorable trends of brokered to end total deliberate by deposits by the quarter. repay the that almost brokered deposit CDs million we customer reduction in allowed over us period-end $XXX in Despite CDs, third
new continue customers As existing total relationships, with to into drive pressure accounts. expectations and XX% our continued performed bring deposits elevated Despite favorable environment cyclical modest noninterest-bearing the deposits. line in we at on rate remained win see they interest-bearing we of and those expand to balances,
environment balance to in competitive We rate funding monitoring pricing right deposit steps continue needs cut we took customers' our to pricing the the profitability. model, cuts and to feel objectives strong ongoing between the We With plan with adjust our rates. own future. as as strike well manage positioned relationship additional we began the their alongside Fed to
a in favorable and the portfolio. repayments This on Securities from adjustment quarter. more we million $XXX valuation improvement rate in increase X the the in a impact than net Our and drove in offset mark-to-market Slide portfolio the maturities benefited our saw shift as curve XX%
quarters, at of We continue the if XXXX. to believe point enhance in we and resume earnings will investment maturities even repayment expected coming this some in the portfolio
X. million. income interest Turning Net Slide to $X $XXX increased to million
income. collateral to million the allowed quarter-over-quarter. grown shift securities from BSBY and and interest the offset The of funding us Excluding the the to have net lower balances. curve strong rate $X from loans cash cessation, deposits, CME impact customer benefiting and to net of wholesale which would interest coupled maturing noninterest-bearing pay the pressures That, swaps reallocate Fed, with the allowed benefit BSBY deposit down in income us cessation,
of and protect By interest portfolio slightly environment. As successful Slide composition dynamics, position and over and sheet intend rate strategy managing us allows considering sheet on balance maintain while of X, sensitive time. our we declining execution our insulated better liability made a our the shown our from us balance swap securities to rate our strategically profitability has to
quarter unchanged flat, from the in and strength quarter, X relatively historical a quality XX. remained solid Criticized feel as well remains overall assets We credit third remained competitive trends nonperforming on remain charge-offs averages. loans second Slide essentially and below as at shown were bps. low our the Net
The risk overall even of lower strong, through if have feel economic and to for portfolios, credit remains materialize allowance was Regardless, the loans. potential especially peers we rates us [indiscernible]. outlook to to total cycle. X.XX% we portfolio inflationary improvement in an unchanged increase lower also outperform credit our for our well Even in position the pressures further conservative discipline continues relatively lower average drove by loans, losses though proven
million our Slide noncustomer-related quarter recognized loss negative second from due in a to in XX, derivative variance primarily decreased $XX quarter. $XX as third the million income a quarter, $XXX vis-a-vis $X related million to drove Changes compared million second the On $X of a the in quarter to we income. million noninterest value gain third the
held curve collateral the at the Risk lower the amount of income declined required rate hedging management reduced $XX million as CME.
income. this While in part a resulted benefited net in noninterest income, decline of interest this
in trends customer-related commercial syndication encouraging lending several with a fees saw charges. We increase in and derivative income, increased commercial fees, categories small service
the quarter, consistent but tax-related with it would benefit excluding million market in was income improved second up, have $X Fiduciary down, performance. seasonal the been
the to continue targeted in enhance be further noninterest We to encouraged by initiatives designed progress income.
Salaries offset and XX up increased $X mostly benefits were was noninterest prior over other within income $X deferred a the various in Slide smaller Expenses million compensation, quarter. included which which million, million increase $XX on increases. and
compared by the a a third special quarter declined the the adjustment $X to due expenses related million, FDIC in favorable $X quarter, million million in both assessment. $X to second partially expense to accrual
drive we to and In controlled, prioritize to all, leverage we improved and efficiency. feel expenses opportunities were continue operating positive well
on strong shown in improved the third position XX, Slide quarter. further capital our As already
loans lower our out, capital opt conservative management CETX regulatory have AOCI minimums estimated estimated the for profitability, Adjusting drove X.XX%, and Solid XX.XX%. which our and been CETX above would required to buffers. well is
a XXX basis Movement in repayments ratio increasing points. coupled curve, portfolio our common improvement maturities ongoing in XX% resulted AOCI, in our in equity over forward by the tangible securities and with
$XXX million utilize starting the our compelling a target our Considering favorable CETX stock our of common strategic our in portion fourth plan curve, to quarter. movement excess of in capital repurchase excess we the well to and in the rate shares of estimated
our measured in support loan customers' repurchases be to our first our calibrate and trends. and needs remains the size loan to with approach priority capital future frequency we of expected always intend Allocating so
also any strategy. as our We and also regulatory economic updates may to forward curve, will the closely broader environment, watch our profitability, continue influence the they
not any the the program. timing transition or of Slide Direct to Moving update of Express specifics yet XX. We have do meaningful the regarding
end expect current us than Fiscal so to the year. of extension X-year no more our our later up of As would notify before under intention allows to a hear need their to contract December, terms. the service a to to fiscal reminder, we current service extend utilize early
our and an deposit our impact nature do has not this expectation may the transition timing program, or critical to noninterest us than to deposit of rather longer balances, of XXXX complexity believe However, expenses. changed. not on of leads be the income anticipate shorter. this size, Based We experience transition
is more balances see possible plan in deposit to not although significant a XXXX, average we the on confirm. impact it fact, need In may transition to information proposed we
prioritizing funding further and an core for we to the model strategies targeted enhance prepare aligned meantime, continue our relationship eventual transition. with plan In to operating deposit our position
Slide X% industry across is this our half cuts average some XXXX efforts latter demand, broad-based in and normal customer project quarter XXXX growth which for seasonal outlook major fourth the consistent be quarter. third rate lower following drivers been are anticipate optimism has the in modest XX. to feel of deliberate for We patterns, With XXXX. on than muted XXXX we optimization the and The loans Our the we decline. the
in that on the more this believe peaked. reduction we bigger projected may balances we in Estate business could balances pace have cuts, of variables of further rapid Depending rate than One as Real and see the loan be in size business. Commercial our business, a will
$X relative quarter Full are year quarter's be reduction X% in expectation to customer XXXX. the guidance broker trends. from projected in deposits slight of decline average quarter last also by deposits, approximate are flat. an in are reductions fourth time fourth to This to is deposits time deposits decline the driven customer-related Further year-over-year the not X% to driving billion projected average as deposits X% down in broker relatively remain projected
quarter fourth Although we are third by level deposits, customer projecting distributed by modest temporary quarter some expected. quarter elevated large as averages were which end of were seasonality,
continue the but accounts, deposit mix interest-bearing upper in high on we we still the favorable maintain Based rate project to in a growth deposit concentrated be XX% to interest environment, range. to expect
to We income net improvement interest XX% year to result prior slight XXXX. The to full results. relative XXXX expect strong third compared is a of our quarter decline to guidance XX%
Fourth the this quarter or to net adjusting over to third expected grow interest quarter for BSBY cessation. X% the income X% is of impact X%
curve. benefits We forward noninterest-bearing and offset than more by securities be deposit to from expect the pressures swaps,
pricing to dynamics impact continue overall they watch and we results. noninterest-bearing However, as balances could
continue. remains remain borrowing modest, another pressures, customers produced elevated, we Credit continue believe charge-offs. manageable and to low quality rates and net Interest as high as of costs will inflationary quarter navigate migration strong we
we basis strong our full charge-offs date, However, results to forecast point year to range. well XX given our XX remain to below net normal
impact We in down BSBY year-over-year reflects when X% be transition. reduction income. This income X% prior for expect the to Ameriprise of the adjusting flat risk guidance a management to modest due noninterest to or and trends in hedging
relative X% this quarter, interest income. fee income and trends. pressure line we by this to risk Fourth the the X% also projected and lower continue benefited forward AOCI customer-related it hedging net quarter does pressures, management income, Although income noninterest to decline item. lower third driven other to be by noncustomer-related Despite is to curve encouraged
adjusting and Full expenses modernization the on Ameriprise expected the and from special to basis X% X% impact recalibration, for X% decline reported are assessments, year FDIC after to transition. expense a grow noninterest
leverage. third a as strong expenses quarter basis, Fourth work over or detailed on an increase to we the X% towards projected are our operating X% quarter priority Expense objective slide. positive as on our discipline adjusted of results remains
resumption the remain to share our projected with quarter fourth above of our the strategic ratio Even through growth modest year-end. XX% loan CETX target and repurchases, in we expect well
a a up expect solid nicely to all, us strong will which set In XXXX. for start quarter, fourth we
Now I'll call Curt. back to turn the
