and Thank joining you, Greg. thank morning, today. you for us Good
financial Let's to presentation. on the move the Slide earnings of X highlights to
in quarter a a benign During third we X% the percent in highest quarter, increase our flat X.X% annualized PPNR XXXX assets as results. reached growth level revenue continued core total with of expenses, quarter-over-quarter adjusted achieved the expenses decline the earning of in of slight and credit since strong a XXXX. With revenue and
fee $X after-tax impacted two from swap. net impact mark related firm-wide points revenue and more after-tax growth items, an to Visa negatively strong lower interest prior the our were pre-provision notable total return offset the improved XXX for those from quarter XX.X% increased million income net this a as charges $XX the basis for Adjusting X% quarter. quarter, efficiency by during items, and MB ratio than merger-related negative million to results Reported
the in quarter. X.XX% very achieved an equity adjusted We in As were opening during third ROA and mentioned return the his metrics capital return the our levels adjusted Greg of tangible XX.X% market dynamics adjusted of stable AOCI quarter. remarks, excluding and on an common also despite strong
adjusted excluding Our XX.X% for those over peers ago X of points our to metrics. the ROA is was is higher have quarter. which been to approximately period ROTCE AOCI XXX would X%, At as ROTCE experienced up year CETX basis same our our in original adjusted the in have basis declines and a closer our compared points third now target, most
also us one achieve factors an quarter our these on impact than going previously environmental stated this will anticipated. return targets year-end we helped returns quarter Clearly, sooner performance forward. especially have Our interest rates
Our to the third declining performance both reflect environment quarter continue credit the benign with ratios generally NPL NPA macroeconomic quarter-over-quarter. and
X, X% declined average less sequentially. Slide to Moving total loans than
market utilization on uncertainties. high strong by than maximize be Total C&I commercial to through loan elevated the sequentially, generating quality decreased volumes continues commercial focus X% business, the In cycle. offset growth paydowns. reflecting broad more line were our in to full over our and origination payoffs Our returns
I higher average to at were growth by payoffs and out would loan also metrics the like that end the quarter point paydowns impacted of June. third
declining in estate were to balances large commercial continue leasing early in flat We quarter. real also ticket originations where new Average from we halted loans last XXXX. in see direct
our Our near total very low bottom to at of remain the risk-based less a capital which group. relative XX%, peer CRE balances exposure as percentage of than keeps capital our
capital reflect We environment strong. loan for to originations new will our the expanded continue expect software investments. to continue growth our corporate capabilities, that near-term remain With
so muted year. and this payoffs resulted in However, have net far growth loan paydowns
to relatively commercial in a we compared expect environment Assuming average similar the quarter. the be quarter, third fourth loans to stable
and our remains selection underwriting as loan loans quarter. sheet demand As plan Average long-term always, our levels in consumer is risk Overall, total our appetite. X% client grow shareholders. we balance prudent within best our of interest from on last focus healthy to consumer at the grew
was $X.X quarter. growth during quarter, driven production billion auto loan the This by strong of
with downs number nearly Home we payoffs, Auto have higher years. in that last was production for a risk highest pay and targeted our X% were balances production the this the same quarter the to compared declined. past profile quarter, due again to strong but equity decade of strengths
industry. card in line was growth credit with the Our
management The consumer total to balances was in line X% sheet environment. flat residential with expect portfolio and we quarter, our preferences to In balance the in current sequentially. fourth increase average rate loan X% the mortgage
compared income NII Reported for stable and Moving on quarter. accounting or $XX million purchase net by to The was by X%. accounting sequentially our points. million NII benefited interest third X. prior basis accretion, Slide Adjusting our margin $XX the net quarter X adjustment to decreased purchase interest
the from decreased The points second X.XX% basis quarter. adjusted X third NIM quarter of
to from larger as the Third relative curve, growth. balances quarter slightly resulting a well elevated shift the margin decline was our due cash as and July deposit in elevated expectations LIBOR strong compression yield in to
as points interest deposit basis to bearing points costs X basis the be Interest during decreased expected. overall maintained well sequentially Our quarter. X down liability very costs we bearing continued core
interest basis quarter XX cuts. another the assuming bearing approximately deposit to decline October XX expect quarter the third to fourth from core fed We an costs in points rate
basis X $X relatively decline expected, declined and portfolio loan amortization was portfolio stable yield with Total the level as investment on basis maintained we points. million. yield X than points only less a the quarter, the During our premium the of
NIM core basis, X from third a decline the we expect fourth quarter to basis quarter X points On NIM X.XX%. of core to
a rate in XX year the incorporates X cut guidance October X.XX%, core basis points Our of results to NIM and approximately a for in XXXX. basis increase points fed XXXX compared full
be our We fourth sequentially, quarter income, to relatively outlook. growth NIM X% down approximately the currently reflecting interest expect net and stable the loan excluding impact PAA
As meaningfully overall the outlook. an rate based year, NII will increasing the to current we look next at start our hedge and to ahead on positions level contributing
of to in September rate first of in full from on $X We the the assuming cuts hedges December expand assuming Federal will in XXXX at expect be X.XX% upper the range assume of and be end in deposit expect XXs. two the to We March the starting executed given the range betas lower quarter the points this the and additional to XXXX, and XXXX points time, expect basis benefit couple of X.X% expect the fed previously XXXX. basis billion our of actions. January. forward be XXXX of that At year and We a in would depending NIM in we of approximately of begin NIM of quarter core rate will of fourth cuts size timing end at the to to that range be Reserve XX no core
NIM are if rate stable, if QX our basis few expect fairly the for remain year there rate expected and we a XXXX two more relative cuts. are the summary, points widen full to no there level, In cuts to
in strong quarter July. Moving X. to we banking. a on income than Adjusted Slide to We guided non-interest stronger corporate had increased performances sequentially both banking XX% fee led income in mortgage and in by
realized we to a July, you performance larger anticipated the growth quarter. fee As half the we strong guided in second in portion recall, and our of third
deliberately to total benefit of environments demonstrate a maintain product income our investments non-interest fee the our in of revenues ability the and we wider businesses number channeled scope platform results our a having capabilities. During to different generating diverse years, year-to-date a last and two with in increasing of service grow
XX% were related and markets, up serve exceeding our prior to by and lease banking diversified enhanced fees debt capabilities revenue, the from strong quarter, Corporate our reflecting better prior guidance growth and M&A advisory all capital our clients. driven significantly
capital markets Our markets quarter, this generated record for partially accessing clients debt by financing. revenues teams impacted the
M&A we transactions already ago months that during team two Additionally, the closed hired renewable quarter. to energy the
increased banking $X.X quarter. from the revenues sequentially. year currently fourth of expect ago prior was banking corporate the of XX% XX% from $XX or record Mortgage down million quarter. third $XXX up we For billion the volume approximately but up quarter, of quarter, revenue XX% Origination million this from
on gain constraints. from XX capacity basis last driven in same points points quarter remain sequentially anticipate given expanding will fourth which the XXX industry of wide points was by secondary year, sale elevated basis spreads, we XX quarter basis Our up margin the and primary,
this mortgage ago support our in three of this than investment Our based our business today loan The environment. cyclical origination revenue on stronger good platform system. in is years providing is nature
from lower and were consumer offset asset due flat management higher quarter higher fees. quarter X% service fees Wealth prior as to personal the management revenue. deposit prior revenue deposit the compared asset by increased were commercial Deposit charges to
fee our total our year raising full fee quarter XX%, this to from guidance XX% growth income once the elevated strength outlook half benefit diversification performance to XXXX in XX% fee our of income second highlighting July strong again XX% to generation. Our and
numbers This banking. seasonality third high of XXXX. record our adjusted the reflective in X% non-interest outlook the of mortgage the decrease expect approximately third income of total quarter, fourth Because to in we from quarter is quarter
We also expect during revenues wealth higher management quarter. the
X. Moving on to Slide
items of reported well decreased the related $XX deliver $XX We million of merger included period amortization these savings. million. to items in materials, and as our previously shown related expenses items remain on provided $X MB expense quarter quarter. expense expense on Third prior track million, Adjusted outlook non-interest the for intangible from prior as for
We expect basis to by the continue to end run of capture approximately $XXX of XX% by of XXXX and million on in the the savings achieve end. savings to a rate first quarter year
the after after to charges well continue merger merger charges we to be and our Additionally, tax inclusive in related current million $XXX of expect periods recognized total charges, past as tax. future as approximately projected
minimum expect expect We including month. – third from adjusted $XX level, in quarter expenses quarter the our at impact slightly $X current to effective of to this end continue drift the the we the wage of $XX raise from fourth lower
appropriately. core we interest related in are As the challenging to lower XXXX, we revenue look mindful growth and ahead for expenses trends plan growth our the manage to slower rates of outlook loan and to
our environment term for with growth, businesses near realities on impact associated leverage. and maintain investing operating we on long-term the not will disregard we focus market the While our the in
share you with will January. XXXX We our in expectations
to X. Turning credit Slide on results
results the Third continued benign environment. generally quarter reflect economic credit to
or Our metrics key lows. remain credit historical near at
charge XX The offs charge offs points commercial third basis decreased X basis from basis sequentially of while points basis XX reflecting ratio quarter, factors. and points increased to to basis declined net NPA the consumer Compared XX last points. quarter up points, ratio NPL basis net seasonal X points X were sequentially,
fourth to We quarter’s slightly third currently quarter The performance. track to generally charge ratio X.XX% leases. loans ALLL sequentially portfolio and offs of increased expect the
the outlook absolute potential remind with given low fluctuations, a support current I Again, of offs. relatively like continues the that credit backdrop current economic charge quarterly stable to to levels you would
result banks XX% the expect the reserves. disclosed with We to appear legacy be in adoption, other in CECL that our line to to in – respect increase have the we to CECL expected ranges already information. a In their XX% upcoming expect of our portfolio, to impact with
due the loan accounting be combined methodology our the the MB’s CECL Due of the treatment between will that in that time is treatment at no incremental loan to established is to for portfolio This accounting fact acquisition that increase the there the predominantly loans converts XX%. we to CECL under of the mechanism non-PCI under range under the the in to acquisition XX% of reserves reserves. differences impact CECL, discount methodology, and
Slide quarter. to XX. remained during Turning Capital strong very levels third the
tangible equity was AOCI Our X.XX%. common common ratio equity our and was excluding Tier X.X% X ratio
remains at target medium-term Our CETX X.X%.
book $XX.X the tangible per up value share Our this and XX% from quarter. up was quarter, second X% year-over-year
million of share completed by to we which $XXX compared XX.X shares shares the quarter, the count in X% outstanding common million quarter. or our buybacks, approximately reduced about second our During
to the to raising execute remaining approval. our repurchases of the the remaining in by $X.XX, expect million subject cycle, dividend We board which three quarters approximately $XXX is CCAR addition over in to
Slide our to XX plan normal like information provides We outlook. few reiterate a with summary, our would to summary XXXX In timing. in I January of our consistent outlook a provide current more items. regarding
and third years were the progress strong past our towards achieving Our results quarter that over to through cycle. made the we’ve demonstrate goal few of continue the outperformance
revenue on on meet acquisition Our expense the synergies. MB and on to execution our is targets track both
always, to confident remain various remain on in executing ability priorities successfully our strategic outperform intensely As economic our and we against through cycles. focus
over it With that, the Chris up call let for to to me turn open Q&A.
