and to thank everyone us Thanks, joining today. you Tim,
balance relationships strength, gains. and strong results year, reflecting sheet new accelerate to first new fee Our management risk household and commercial credit diversified revenue a quality ] were streams. in posted We saw expense the start [ and disciplined growth quarter our
balance highlighted strength a rate an economic importance sheet interest flexibility have in uncertain environment. maintaining year, and we of the and over For
evidenced has of strong economic rate of results expectations returns strength cut current out. are position the range first Our as across produce This should us quarter stable which a well approach served outcomes. pushed wide our and
to quarter our which among in for stable and expenses. ROE efficiency we the date highest compensation of a mentioned, NII and Tim we as and efficiency for we best were reported remains and a On the As among ROA the ratios our strong in outsized most have that stable year-over-year basis, profitability the the most seasonal have ratio. ROE both ROA peers have and
and points inclusive consistent absorbing added earnings points from CETX the CECL quarter, impact basis XX X basis of the to strong during Our phase-in.
the Turning X income Interest-bearing only billion the well to quarter. the statement. point managed our income costs with and compared interest quarter $X.X expectations. was were for Net consistent increased and to prior basis deposit
to interest migration on fixed new X were balance rate point the consumer margin and environments. growth of defensive increased basis navigate to to with the The from interest-bearing and the contribute reflective deposit and quarter, production economic accounts. count loans yields benefits demand balance offset sheet by continues the rate Net improved positioning be of interest day optionality partially changing to for
This XXXX. increase NIM sequential since in the is fourth quarter first improvement of the
noninterest year. impacts gains offset from due the swap, total and Visa management over commercial mortgage, growth banking, in decreased revenue adjusted income of secured prior asset year Excluding the a and by and ago strong quarter growth revenue double-digit partially where both leasing return saw fees, treasury and the X% to lower in management wealth
the Adjusted which mark-to-market discipline securities our compensation continued our X% The is to our expense. compared noninterest the deferred the benefits of efforts. in expense process of reflected ongoing compensation ago focus impact $XX on more and decreased quarter automation to plan, expense year from gains than offset million due nonqualified
items in are seasonal year, continue expected in increased as $XX expenses spend branches While growth. noninterest timing associated invest compensation sequentially to of awards to to the opening payroll from addition X% versus deferred previously million down compensation and taxes to due household the plan. mentioned expense the nonqualified of prior we increased Adjusted marketing and new drive expense with
sheet. to Moving balance the
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growth middle footprint. Average we commercial consumer our prior across middle-market X% driven the Tim revolver market. from Period-end utilization saw As increase quarter, also XX%, was by discussed, loan a total solid sequentially given growth from and the energy environment, by installation auto originations. leases due flat originations, slowdown and offset the solar overall portfolio rate residential in indirect loans to mortgage were loans
Average our and deposits wealth interest in Decreases flat. primarily within core DDA seasonality and were balances sequentially, business. both by increases consumer CDs were X% while normal driven deposits segment, deposits decreased sequentially, in commercial decreased X% average offset by checking. partially By
Consumer deposits at the than to quarter of rebounded the of finish quarter. slightly the start higher the end towards
percent during that strong Migration great first to granular pace of Tim quarter. profile core first Category us The which with of full of with loan our household we of are XXXX, LCR the insured quarter, quarter quarters. and DDA we deposits at as a compared carry deposit deposits. in the balances in of on ratio a was multiyear both XXX%, and and slower to the growth XX% in pleased are quarter results funding than with to at prior was ended the trend As flexibility. end XX% very our DDA the Southeast as We continued X provide investments, but the core branch strong continues expect prior XX%. mentioned, compliance driving to
credit. to Moving
was net up XX delinquencies charge-off sequentially XX basis ratio historical ratio increased remain to basis days points ratio X trends consistent loan below our points. due decreased basis NPA sequentially quality which XX XX X X was XX with Asset well to guidance. The behaved points, basis early-stage of The and points bps. past to The basis points and averages.
and region We granular asset credit generating managing maintaining or relationships any to and concentration discipline by have by our risks maintained industry. class, high-quality
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ACL. the to Moving
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macroeconomic utilize scenario Moody's our when made allowance to scenarios evaluating to no changes our and weightings. continue We
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Our pro forma AFS the impact CETX ratio, including portfolio AOCI of X.X%. the is securities
XX% our in locked a Approximately end given that losses securities We the related cash XX% XX% out XXXX the expect by expectations. which plays back our the portfolio of securities, by accrete assuming XXXX, securities equity improvement certainty to will losses into and flow in in to is the out. curve the portfolio end of degree or forward of bullet the unrealized approximately AFS principal provides AOCI high of of
our to Moving current outlook.
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to to full be loans both balances the up XXXX single and average expect quarter we total fourth to consumer up in end the fourth expect XXXX. XXXX compared loans we average year decrease, total of quarter low of by X% digits with commercial of the While
revolver stable. assuming are We also remains commercial utilization
expect stable. of quarter XXXX, we second the be average balances total to For loan
to softness outlooks be rate on due to up originations. in to consumer and which solar economic loan offset expected uncertainty be the expect to We growth, commercial and is due auto by interest
remained growth first household growth those in deposit the retail Our quarter, and drive payments outcomes robust and XXXX. will growth in commercial
market potential However, we mindful are of and monetary for headwinds economic policy.
X% of our Therefore, realized X% X% compared we in are only core XXXX. to growth growth deposit year to forecasting average full
year. interest migration levels, of we the has see While rates, at dip given current XX% the we high expect middle the declined. continue to the If during below remain migration pace the level to expect DDA rates mix of DDA of absolute
Shifting to the statement. income
loan Given fixed of full behind our costs NII is in year the X% X%. is NII as repricing to rate cuts. to benefit the X we expect us. continue to trough decrease as Tim forward the the of April, NIM the are And curve we seeing the early mentioned, and deposit which stabilization consistent outlook This our expect from book, we projected and with total
positioned neutrally risk performance that The deposit of is primary our even NII reacceleration to XXXX, be would competition. so However, our balance expect stability in with we a NII our sheet X outlook. cuts in
Our other throughout the quarter of and forecast also $XX remained ended billion which relatively stable assumes at short-term our cash investments, remainder over XXXX. the
NII and the to to stable quarter expect rate We sequentially, pressures benefit deposit our repricing. the up reflecting second fixed cost impact loan of the be in X% slowing of
outlook XXXX, rate sequentially, assumes which would points basis deposit XXX if of in we cuts. current quarter interest-bearing see X were the points first Our costs, no increase about basis
expect We reflecting capital to growth be in wealth management income our and with prior XXXX, X% adjusted market and X% to fees revenue. up guidance, management, asset in noninterest treasury consistent
be expect reflecting to year X% to commercial to XXXX. be noninterest banking to We expect up higher our first full guidance, with we X% adjusted up second X% Consistent noninterest to quarter adjusted quarter. income revenue. expense compared largely compared the prior
continued in and tech force middle market, technology assumes with in mid-single growth digits outlook sales expense treasury management expense investments and the additions Our in wealth.
new also XX close similar markets to We number XXXX. in branches in will a and open higher-growth XX our of branches
We due In the to decline total, expect approximately costs revenue seasonal second our and benefits compensation X% to X% to X% down in to PPNR in down be total X% first expense full range. the adjusted first guide the compared the adjusted implies noninterest X% be quarter. to to year quarter and to quarter
in XX% This relative a ratio the of result year, outcome in the NII. efficiency increase XXXX, will full driven an by around decrease to modest for
XXXX. in We expect of the half leverage operating to positive second continue
remains with for charge-offs normalize, XX to XXXX in in also XX outlook point net credit range. the quarter point as net to continues second range basis the to charge-offs basis XX Our XX
$XXX the being no connection the with We is in economic expect to build full quarter growth, change loan expected $X million build $XX to second assuming million with a resume builds Loan drive to for the provision to outlook. mix growth million. to approximately and $XX year,
half strong including last the of earnings repurchases a $XXX our third second consistent million in to $XXX resume $XXX in XXXX, and quarter, of flexibility stable mentioned quarter, million we assuming share economic million As and to million the to provides the for employees. With the us communities well-positioned generate no revenue continue than shareholders, current customers, risk outlook our long-term that sustainable and rules capital and In are disciplined sheet, and credit growth, diversified credit management worse to NPR. balance summary, expense will with value our we and $XXX
that, let call to it for to over the Matt Q&A. me open up turn
