Greg, joining and us today. thank Thank all you of for you,
the quarter, throughout results with bank. pleased very this execution are focused reflecting We financial the
credit. revenue Visa total The Our to $XX fee expenses for in negative discipline swap. and both growth the income quarterly included continued return million a solid the and included the reported reduction quarter mark results results for on related
adjusted of AOCI, in resulted and ROTCE, adjusted XX.X%. performance the Our strong ROA bank produced throughout metrics. return business X.XX% We an of improved an excluding
X% a Our per continued in to points of interest Improvements adjusted income, XXX quarter. XX an strongest expense success historically net last credit in generated to We resulting were a for provision basis with the quarter $XXX low diligent just ACL record release management. sequentially, for earnings quality pandemic, compared points PPNR losses. Bancorp. growing income in to since points share the XXX ratio the and results, basis reserve, the improved quarter economic non-interest growing $XXX this diversifying million our resulted charge-offs benefit we a credit credit of outlook, net healthy million this With before and an and recorded basis
manage given our ability balance environmental despite to market interest low-interest effectively elevated million Moving the capital income $XX increased income headwinds statement, sheet sequentially, and to net the paydowns, rates conditions. reflecting from the
loan driven locked-out investment penalty portfolio, cash at benefits average quarter-end. which and our NII our in a growth position that of strategy growth bullet $XX flow incremental and from X% prepayment was million XX% of Our by remains
from the balances bringing benefited $X.X buyout loan of Our additional total third-party $X April, the Ginnie forbearance loan to Mae in early billion billion. purchases purchases
quarter. long-term and million lower to NII count not this debt the loan maturities, loan was commercial a higher were interest quarter, income and declining balances yields. impact by replacing average PPP partially prior offset of related the $XX relative other The benefits unchanged from day
of the higher X% income card fee income over points. rates rebound securities XX%, compensation quarter diversification near Non-interest our commercial underlying this assumed quarters mortgage sequentially. syndications the well interest-bearing the side, With increased deposit up cash, low, originations management over strong long-term in the commercial going management, by of to portfolio our billion corresponding non-interest our reflecting interest buyout quarter benefits prior an the offset million margin limited of products, quarter, reduced the by given reflecting offset increase charges, benefit both These as the that with commercial by robust as of long-term lower On balances asset-sensitive the business and have also with a with the PPP sequentially, forward contract to quarter, compared most non-qualified strength maturities lease throughout the from we security in past positioned and income the excess points strength $XX in levels renegotiations, another $X.X our processing reflecting investment deposit products the year-ago economic billion, just million in in we offset and and compensation gains. to and XXX compared as expense point was basis well increased banking NIM asset yields. the rebound, the several wealth $XX revenue, $X approximately revenue decreased their X rates the deposit adjusted hedged service was retail debt CDs robust to Underlying sequential have economic the Ginnie and and liability in sheet card X and past servicing X% by NIM, decreased reductions incremental and loan debt. revenue, expenses, and while core banking loan impact credit and in in and to expenses if performance by likely be or revenue, line and both and and bank. highly lower remaining continue mortgage decreased channels, were partially of to and loan balances correspondent commercial declines to over maturities. quarter, benefits be deferred Top financial and loan in revenue disciplined at rise, expense deposit plans, strong balance decline of $X debit non-interest when point purchases, excess liability Total revenue benefit will both year. Compared to loan partially The costs lines driven in and due to strength second management excluding from X% which and expenses reflecting Production quarter well to banking remaining a processing billion solid risk partially linked processing due With long-term sequentially. points and basis Mae debt, management and basis we non-interest remain increases increased the floors, revenue also syndications. performance, derivatives. Adjusted card mark-to-market increased during basis liquidity, basis and pressure. X resilience in aforementioned fees. highlight declines with consumer and our impacts reported first Reported portfolio, a income were offset business to achieved. interchange This associated X%, expense had record
third-party in expect loans. full incur million year, we the purchased around expense for For servicing to $XX
to compensation-related are we in compared success basis, year-over-year growth Our growth. total proportionate fee-based our X% the year a to to XX% expense this expense fees be adjusted continues have businesses. seeing On increased
to have Additionally, the XXXX, levels growth of fees second of expense XX% the adjusted pre-pandemic just compared of compared quarter X%. total increased to
a loans total was X% up to sheet, consumer offset leases balance by sequentially, loan average Moving commercial as were loans. growth the in and partially decline
equity to partially PPP. loans offset and PPP impacts and in second Average period-end credit Average portfolio throughout offset and pre-pandemic by Additionally, declined Mae were excluding X%, X%, market strength commercial in prior XX% most our declines to compared elevated the over quarter the compared quarter, home the by X% were across impact government purchased strong reflecting forgiveness the loans Production as which middle largely were payoffs, total loans and XXXX. up consumer production to up loans up levels was continued the ongoing card XX% of of increased Ginnie and our stimulus. of the by prior auto verticals driven of partially compared the footprint. of quarter balances,
impact prior the are capital markets and to of Excluding loans business slightly reflecting showing of stabilization. PPP, Revolver sequentially, conditions. industries market the up of client sentiment of flat compared activities period were signs XX% our liquidity as end utilization C&I the was in and quarter, several
relationships us virtually deepen sequentially with loans these retained are enable throughout encouraged forward. balances the Average to flat declining fact which all the end period clients further We by pandemic, X%. grow we will going CRE of and were have successfully that
increased Our this X% securities portfolio quarter.
reinvest cash excess patient We deploying flows, cash. we'll but continue on to remain portfolio the
to continue economic opportunistic will We be as environment evolves. the
and of attractive deposit remain grown present no would strong opportunities expect investment deployment Average in economic which changes level. XXXX the north growth point XXX short-term increase risk-return Assuming interest-bearing outlook, We future. investments, when an move optimistic of we second core to continued our in bond elevated remain strength to yields which purchases year-over-year. eventual of the meaningful that economic half Fed our to will in cash, basis cash balances, due the tapering have XX% includes more
from We continued seeing fiscal deposits year-over-year and of both and growth. a to balance come consumer monetary core quarter, in and strong deposits. commercial average increased and the on X%. the Compared About consumer, strength are household two-thirds prior stimulus growth basis reflecting sequential has
while client strong and our the benefiting disciplined fiscal performance from this credit, selection, also credit prudent reflects improvement again conservative in balance and once monetary broader underwriting, our economy. to management, Moving and continued quarter sheet stimulus
quarter of The XX $XXX to or points basis XX% sequentially. improved XX historically XX second was The and Non-performing low net points declined basis declined points charge-off XX basis ratio ratio assets sequentially of significant points, million. and criticized our improvements with loan and leisure fourth leveraged portfolios. as to Also, assets well retail is declined our as the basis comparable energy healthcare, which XXXX. in in XX%, quarter non-essential, NPA
particularly district central on hotels. occupied focus commercial However, we continue real non-owner to estate, business
loan the ratio downside applying associated million result scenario XXX% of at to result would was our XXXX portfolio, job Moving downside the million to to impact to the upside with base that the weighting and our reserve a probability X% discount unemployment to XX% and reaching to assumes in strengthen, XXX% continues in scenarios. MB our weights X.XX%. base X.X%. $XXX change XX% ACL, our a base the approximately Inclusive remaining reasonable growth the macroeconomic to Applying case the of supportable scenario of quarter labor by release. improve Conversely, market We did period the $XXX three-year and continues around with a not $XXX first scenario million scenario of in would and ending build. and ACL
associated Additionally, virtually loans be ratio excluding approximately the would X.XX%. $X.X PPP with credit the reserve, billion in no ACL
environment. downside economic the While factored are base our several the in expectations to backdrop given into key play and case uncertain further the could risks out, which favorable there economy, scenario point our improvement
we monitor in impact consumer have or highly the could trends. to particularly still industries, rising continue identified We reverse, many impacted COVID being the which businesses, situation, confidence those as
unemployment credit allowance environment Our best the quality. and our with June economic improving of continued XXth lower incorporates estimate
strong capital, second to Moving levels remained our the in quarter. capital
XX.X%, the target stated $X.X ended of which above is billion quarter ratio X.X%. our at CETX Our
AOCI, per the value book share, quarter. during excluding Our increased X% tangible
Federal Third buffer capital Four approximately us stress the rules. FCB test of the not Category X.X%. which been notified July subject and Fifth June, we effective end latest have to Without the institution, a was As not a the regulatory the At that under Reserve did be is X.X% would floor, opt-in. our Xst, floor would Fed the
the share quarter. During $XXX repurchases, first share approximately in million which quarter, we completed compared reduced shares count to the X million by our
$XXX expect increasing we in mentioned, XXXX, to repurchase September. the common our dividend also of Greg of shares while second half in As approximately million
this We also quarter. announced our acquisition of Provide
basis on of acquisition our an asset generation Fifth approximately strategic of will which focus growth utilize upon balance financially our growth on perfectly points dovetails XX of sheet. compelling produced closing. standpoint, From approximately digital generating they profitable the CETX first XXXX, in purchased enablement We This Third existing with half engine $XXX XX%. We believe prospects. in million Provide's an of strong origination have and
virtually go the to early originations half around closing, all balance given $XXX expected million, will sheet. our be of second expect August We that on and
over expect grow in years. and annually to over few in originations billion within $X XXXX billion a could We $X
Moving from low to to loan balances to reflecting paydowns outlook, our last current we in PPP full growth with year, in average and double-digit total be expect stable the year, compared combined commercial, consumer. for pressure continued forgiveness
continue to this stable in environment. expect remain CRE We to balances
assuming experienced our X%, in of basis, continue in loan NII to for incorporating year. prepayment we PPP we PPP second of security point first expect approximately sequential quarter assumed that the expect $XXX year expected down million this income. our guidance, and the related expect income On we million We stable million NIM in $XXX compared interest XXXX. the income was XXXX, the of in be for to $XX XXX XXXX full basis the which the outlook, to an NII be in to X% year, to realized $XXX half in balances the approximately do as PPP well as repeat a and not securities our decline Within assume decline in impacts. million will underlying we impacts with around outlook, we our portfolio given Combined all expect area in NII
expect the Therefore, over $XX in quarter we or of the approximately impacts, to up NII from X% would quarter, we around For of XXXX. X% XXXX, PPP million excluding the to third decline third PPP expect second income. compared quarter third quarter
the to X% X%, to excluding continued expect increase throughout businesses, compared the of Given to year strength X% the full to X% our fees XXXX or impact we TRA.
continued offset Our in revenue, share talent success ongoing capabilities, wealth well fees, and outlook management processing of mortgage assumes market markets will investments declines. as be our which our result partially economy, healthy and capital resulting as stronger a revenue, in by taking as asset and a
of Additionally, direct as million. gains funds we venture XXXX, $XX discussed XXXX in from several level equity in exceeding capital of investments throughout January, to our private expect generate we potentially the
We have the recognized second half which XXXX, we around half of in double $XX gains first through XXXX. million in the expect of to
of decline total year-over-year. to compression. benefit third the relatively The mortgage year throughout the the and In revenue be we digits second mid servicing half top-line single-digits from lower fees business, headwinds quarter from to to revenue to expect year-over-year We stable expect high-single high and margin would be is quarter, second from to decay up asset expected fees. higher due continued the
announced commitment potential that given donation does additional to will Third with gain to and accelerating program, $XX HSA that see the redeploy $XX of a business our the product. pre-tax marketing fee a that supporting close half upside a the in approximately quarter, sale expected million between the Foundation momentum outlook communities million of third split we and our to million that inclusion not philanthropy our racial equality evenly of is in $XX do complete Fifth incorporate quarter. previously in We Our to associated third gain in plan the
and redeployment incremental expect loan the down strong to acquisition. be given We Provide expenses associated as expenses the costs half the continued as HSA the to purchases, sequential X%, up with we outlook the expenses On gain. from basis, be excluding of a expect of our to X% portfolio the full-year revenue servicing X%, well
branches, As our early we XX complete recently Midwest discussed, we we to expect primarily XXXX. expect footprint, legacy to consolidate in which in
We've Southeast to generate operating of of second we XXXX. reflecting included far add generated our half positive we've market branches leverage half rate this growing management. our expect outlook. branch this and approximately proactive Additionally, the to de our year second in sheet XX impacts fee-based positive expense balance quarter the in All operating success more five plan our and novo opened in branches and run so continued for to businesses, leverage year-over-year actions, continue XXXX, are our
in continues performance points, assuming XX net basis expect charge-offs first given to to basis case We half the to total scenario XXXX our XX strong base be and play out. points
basis Third the are summary, our quarter and few XX in In be our through have years the progress quarter goal strong XX continue second past achieving likely losses point made to we toward to basis the cycle. range. demonstrate were to over results of outperformance the point
us rely turn a during that, of to on continue to horizon, for underwriting, well let and a conservative Q&A. Chris call client disciplined will this principles has selection, long-term open me the to over on same We performance it the focus which environment. With served up
