of joining and Tim, you, for you thank Thank all today. us
were market adjusted an the of efficiency is compared headwinds. We XX%, once a which prior Our improvement just second the strong quarter. despite quarter achieved to ratio results below again X-point
both streams compared disciplined the X% management quarter, Our adjusted PPNR second combined fee driven year the expense diversification continued our ago grew the and throughout more bank. quarter with prior of quarter revenue and by than to . growth
billion interest primate X% income decline Net did year-over-year, $X.XX increased X% sequentially.
of sheet tightening to to uncertain Our on performance sheet liquidity defensive balance a conditions. macroeconomic outlook our balance deliberate actions was sequential and support NII result position, liquidity grow the given the
noninterest service XX% of fee mortgage higher quarter, includes from of X.X%, points the increased July cycle-to-date partially impact elimination year. last earnings CDs. income compared Interest-bearing in ago to Adjusted NSF which increased income of revenue with year beta deposit market basis banking a consumer XX the interest-bearing which X% to on increases and credits and charges represents fees decline to due deposits, deposit of impact offset the of our the commercial rates by a in in costs
the quarter as year expense ago of in increased the by compared investment wage minimum driven went was July expense elevated compensation that continued to costs, XX% into XXXX noninterest deferred and finance. increase dividend Adjusted benefits and compensation in effect nonqualified
impact the in communications increased January. FDIC higher expenses and expense technology Additionally, assessment began of increased the from and that
increase securities Excluding by gross FDIC which finance, of ago and growth impacts the nonqualified compared quarter. approximately dividend the from the are compensation, Total X% deferred underlying incremental increased expense in a year gains, up expenses to assessment offset
Total our client returns sequentially consumer commercial Moving optimizing respect selection and stable also in were discipline due with to loans average leases demand. balance sheet. and softening to continued and to both portfolio reflecting and portfolios the
The as utilization. the compared customer on C&I utilization muted to the in last loan our revolver and by production X% of on period-end to were tempered production was XX% focus quarter market lower Corporate optimizing offset to decreased banking lower revolver and capital commercial middle flat were compared rate strong due payoffs demand. prior returns quarter. environment balances also this
auto XX%, total growth declines deposits balances wealth as quarter clients' and residential and reflecting decline a in increased the Average as dividend total decreased Average flat compared and were deposits consumer tax deposits options. and of indirect in management while deposits impact lease asset investment declined to deposits. balances portfolio interest checking commercial mortgage. X%, well in offset loan finance, offset reflected from CDs prior X% By were increases demand segment, by the as alternative payments consumer by and
reflected period-end Notably, banks activity June Fed's last top such compared to continued deposits X% prior were as have June up shown in decline for momentum quarter. X% end data. we of deposits the since total the X% compared to the HX that grown the a XX
credit. to Moving
stable which points prior below compared were metrics we three credit basis points normalized quarter. quarter. XX points of on have mentioned, compared to three prior Tim As remaining of The to basis our homeowners, The charge-off our basis focused key consumer, the portfolio. represents XX% consumer basis ratio of with ratio points trends NPA lending XX was levels. up to credit increased In the net
the of CRE office percent Within borrowers for with almost peers. We concentration and loans lowest relative concentrations years. peers have delinquencies. to maintained total in many nonprime low also we as criticized have ratio our a limited improving and no among overall have CRE, maintained one overall lowest portfolio a consumer asset In exposure of we commercial, the
watch office maintaining an pursuing before relationships. We We we our the we Third believe and limited. portfolios closely high-quality loan are currently had continually be not impact of office improved granularity generating Fifth CRE diversification overall deemphasized From pandemic, office credit originations. and continue have on focus through the will new to on overall perspective, and the management a even and
As have cautious remain many we economic know, in outlook. and our been of you
We standards, portfolio of the we our but limited up our balance COVID, credits sheet. of underwriting has improved to stability Since including commercial XXX-basis-point tightened underwriting re-underwritten. standards our an the growth tightening off stressing curve, XX% roughly been began forward during scenario which
have Across where monitor been Our cause stress. inflation assets rates quarters. to continue stable higher all may the and past we over loan criticized categories, closely exposures several
the to ACL. Moving
million, increased and basis forecast, ACL $XX The finance nine increased the ratio dividend slightly. reserves impacts points which Our eroded of reflecting Moody's sequentially. macroeconomic
As Moody's when incorporate you allowance. evaluating know, scenarios macroeconomic our we
to XX% unemployment from We rate of unemployment of scenario The upside peak Moody's economic scenarios. to a incorporates the scenario base X.X%, rate scenario and weightings of downside assumes the our the each reaches base X.X%. while maintained the downside and XX%
Moving capital. to
Our at XX the points basis ending CETX increased ratio sequentially, quarter over X.X%.
capital reflects capital ability generation. strong build through our to quickly Our position our earnings
AOCI, book compared quarter. value excluding the to XX% ago tangible Our year share, increased per
to equity accreting back of curve expect the XX% meaningful continue approximately unrealized in We plays XXXX XXXX. loss XX% end position, current of position and by a forward assuming our in out, resulting the improvement of approximately loss our end the into by
our expect Looking to and build an given our initiatives RWA optimization extending forward, by at we capital buyback pause. accelerated share pace
on Tim will in capital we have clarity new dollars. repurchases required order mentioned, level the the of to As determine until regulatory we environment postpone more
XX%. buy year-end, above our CETX ends this would anticipate not do we Assuming such that at accreting through year capital ratio we shares or back
average our and regime. regulatory X%, the current our to loan proactively and outlook on our to outlook; adapt the environment cautious growth new to full economic year our decision sheet Moving balance reflects expect between we which total X%
single to which XXXX, commercial XX% the digits throughout second the We revolver area to second in stable quarter compared decline of the expect rate the first This the remained implies to of outlook total of year utilization relative half the half. remainder low increase loans the a XXXX. assumes in in
total originations from our loans the stable growth reduced also out-of-footprint Our increase higher combined meaningfully of originations consumer that corporate certain bank franchise, the with middle in the in commercial our loan offset to specialty finance. residential in while return core and outlook by meet we commercial to market to thresholds, dividend portfolio channels, areas we from business, predominantly assumes slightly mortgages, auto lending reduced continuing risk-adjusted to lower-yielding down the expect generation partially of be
billion dividend We $X which modest this currently previous approximately in year, expectations. from to expect a loans is need decrease for our
operating and grow or of relationships to past in expect back record maintaining half to even stable share the of commercial. Consistent levels core high with continue of tighter and We deposits assuming slightly liquidity market year our market in conditions both over XXXX, taking track the consumer
declining the continue to remainder discussed quarter of in expect with total into products mix demand Within we to that, the year-end XX% month. to throughout core XXXX we deposits by XX% from DDA of migration as second deposits interest-bearing the from last
the single digits we loan total to For to XXXX, of low to in third consumer down. average X% balances the stable expect commercial slightly with sequentially decline area quarter X% down and
average to multiyear and deposits X% the basis, seasonal be a the the finish impacted benefits in investments expect strong to of some on by discussed Tim that uplift our We up our second quarter, franchise earlier. sequential
X%, Shifting income we mid-June consistent NII to will to investor statement; with year the conference. comments the full from increase estimate X%
assuming the in Our XX% rate July of guidance assumes an movements no XXXX. XX rate AI hike fourth and by further quarter, additional point a basis cumulative beta in
the quarter costs total XX in fourth the another increasing interest-bearing quarter. and basis so in third or points points to translates Our outlook around basis XX deposit
balances guidance year-end. between stable securities and relatively now Our assumes our portfolio remained that
of balances, a stable hold billion to expect combined lower to byproduct in equivalents growth, and with $XX cash closer As deposit growth strong loan by cash year-end. we and securities
loan-to-core more stringent will Fifth keep deposit Third end in to environments. in our area. of the in expect liquidity strong regulatory mid-XXs the position ratio anticipation It year a We
X% quarter to balance to impacts to expect sheet I We continued approximately third mentioned. NII sequentially the down be of X% dynamics the due
due income our wealth from noninterest with and in capital expect to due management XXXX, gross in We stronger resulting share increasing adjusted earnings treasury markets, market talent continued asset stable subdued management, be on capabilities. management, credit to equity revenue treasury private fees lower reduction and revenue and success, investments to income be rates higher servicing a leasing other remarketing offset TRA by year. to mortgage this and in and
to quarter million fourth XXXX. revenue from in our decline to $XX in expect We $XX XXXX TRA million
third to noninterest to be X% income down compared quarter We second adjusted to quarter. X% the expect
markets continue captions, reflecting generating strong revenue. headwinds conservatively debt revenue other as erosion income. we environmental the lower expect be will which and fee slight more in most offset We capital a to than across assume by as well mortgage noninterest
year our the at land expenses improve we capital the expect likely to to to If relative compared to full X% markets current continue adjusted of upper up expectations, fees We noninterest will X% range. be XXXX. to end
XXXX investments was nonqualified reductant incorporates insurance change to compensation dividend expense on an outlook X, plans deferred full went January of that increase impact XXXX but rate provide impact in into Our finance grow year the FDIC effect assessment businesses. mark-to-market which on the the a expenses and in and
XXXX Excluding the FDIC expenses assessment up and NQDC impacts, we would expect to our full X%. core year be
in in investment continued digital transformation, reflects low should growth guidance which double digits year. for the Our expense our technology result the in
expect the digits also to expenses single marketing to in mid- We increase area. high
which rate the taken recognized in of severance operating the expense in factors also guidance run Our given first year, actions ongoing the from to benefits half the proactive expenses reduce reflected environment. the
adjusted to the efficiency revenue X%. This decrease XX% X% year full of our result expenses total, an full expect implies We quarter. of ratio X% quarter growth adjusted around in to would to noninterest to for In year. compared second guide the third X%
year expect point XX net previously to total in be range. full point stated our XX continue to We to basis basis charge-offs
quarter XX However, normalizing to to such Bancorp's record as lumpiness be the losses would this to C&I environment points in third quarter. expected you second fourth costs levels, in be there credit losses total the half then are relative a low expect, basis from quarter little and with that third in may XX improving
around million growth carries This assuming as $XX which, the $XX $XXX higher in finance production considers in lower dividend Given build third underlying the significant strong the level. no Moody's our economic the million a to quarterly quarter, reduced expect in from of you scenarios. million we loan know, reserve outlook, range, to a ACL changes
communities, performance shareholders. In management, we our sustainable credit to well summary, and positioned customers, the with disciplined generating are commitment management employees proactive strong balance risk our sheet for delivering and cycle, long-term continue believe to value we through
to for up With that, Q&A. Chris let call it open me turn over to the
