today. Thanks, to Tim, us joining you thank and everyone
revenue were diversified and disciplined to results our risk balance reflecting credit streams and sheet quarter second management. Our strong, strength, expense approach
in and For emphasized sheet a economic have we rate than strength balance more uncertain and importance flexibility an maintaining of interest year, the environment.
with the first cuts discussed changed low. has in the and increased This from December, approach performance has our from increasing quarter the outlook, fourth the quarters expectations start on quarter in has trajectory during NII rate NIM change dramatically we quarter been the proven for X bottoming, from Despite second this rate market's the effective consecutive of back consistent sequentially as XXXX.
full our outlook remains NII unchanged. year XXXX Additionally,
points. us remained our and allowed XX.X%, mentioned, profitability our to to which grow share Tim and resume XX CETX ratio early repurchases stable As strong up basis
impact reported our earnings including return swap, on valuation FDIC total by items Visa the noted the legal results certain the an customer were update special assessment of to As and and of release, of the impacted certain our settlements X Page remediation.
items, costs, managed and basis billion, to loan and X X of prior impact quarter the interest interest-bearing only adjusted contributed new $X.X production to of which Excluding to on compared X% the from core quarter. prior increased basis the net the impact well net this margin the points for these income quarter prior compared offset Increased quarter. interest and were improvement increased adjusted improved points to the yields deposit increased
and While total were led indirect portfolio X% primarily were leases our indirect increase in to demand we corporate the leases business. from sequentially, Average reflecting benefit other borrowers. repricing, total continue by loans auto fixed to banking offset auto portfolio and by and consumer portfolio flat in balances. decreased average originations, flat rate from lower loan Average consumer loans decrease asset loans a commercial due sequentially,
success our XX%, in and the production are half continued The prior our performance the pipeline in well to is for Florida year and revolver at markets, teams, as Alabama Carolinas, we commercial the loan consistent Indiana, banking middle-market market. second Period-end including with the in the X% utilization quarter Southeast compared recently as invest primarily prior improving, Georgia increased continuing to our announced by Middle Texas strong in market remained in California. quarter. and expansion the driven of
However, we remain the remains the growth demand for muted. customer cautious in half as on loan credit expectations second year commercial of
strong Our in and outcomes of to management deposit investment growth in our continued costs analytics deposit prudent help deposit XXXX. optimize demonstrated XXXX in us by
optimizing liquidity will liability aid of record analytics management, and maintaining data-driven with discipline pricing in track combined costs. strong Our
market consumer Average core lower and higher and CDs checking money deposits and driven balances. were offset savings commercial interest balances, by sequentially, by flat demand
By preparing with managing later core percent X%. and Demand on of of and hold investments deposits balances increased average year. to driving while costs decreased deposit are deposits were prior sequentially, for potential both the as migration balances commercial deposits Fed insured continues both granular on quarter, a with as prudently strong Our stable the of end current slow. second deposit of quarter, household wealth deposits. XX% Southeast cuts as branch growth DDA rate the this remains and consumer segment, X% focus The the
a stay XXX% Consistent longer expect for with environment, quarter DDA below the third mix XX% year. around and deposit ended remainder quarter the of rate XX%. during X higher our fall at loan-to-core compliance our ratio for we prior We and with full was expectations the XX% the Category LCR to for
flexibility to economic balance positioned well to are and to and our rate evolving the interest income, navigate interest We net conditions. sheet grow provides continue
on fees. Moving to
continued XXXX. second quarter commercial deliver over impact ago in growth to decreased X% noninterest Within strong fees to of revenue and equity both sales the decrease growth attributable private double-digit our is continued by gains to adjusted in return results, personnel. businesses, achieving or year, management income our swap, year year-over-year million investments the and million driven compared wealth total products and gain payments recognized security This strategic Excluding $XX the of quarter. a the Visa prior asset $XX and the
fast are today given in these sizable These profitability income to but and contributors are areas scale strength and our fee businesses. not only growing,
to revenue businesses these growth. strong to We deliver expect continue
reduced was have $XX hedging the customer combined market-sensitive demand rate such volatility. market reduced as by credit year. for commercial a decrease and mortgage the prior Our impacted for impact and higher these the businesses environment, versus businesses, The million been
Leasing million securities $X the our leasing of to offset which was reflected the decrease year of expense. million in compensation deferred but by our nonqualified a plan, operating $X business is more million gains compensation revenue decision prior deemphasize down than to is due it versus mark-to-market offset business expense. The leases, $X in impact
and on the Adjusted invest managed our befits adjusted due ago While we during compensation quarter items taxes. year expense noninterest decreased the to initiatives strategic and the automation expense we to efforts. to ongoing continued in growth focus primarily technology, to sequentially, noninterest seasonal have quarter first flat and our related to payroll due awards process from discipline the X% expense
we points charge-off Moving reserves. our the million showed due commercial basis the to by basis consumer due, we delinquencies basis sequentially, charge-offs driven specific points up decreased points. previously near a portfolio. the credit. secured guidance, decreased basis ratio to net credits improvement, last levels basis basis which the our of XX or XX was during ratio the over days XX% basis XX with improvement reduction XX primarily XX Other to had of Consistent were in and points, XX quarter, XX X points, XX decade. is which lowest early-stage basis have for ratio points to decreasing established experienced indirect $XXX the to by NPAs X metrics credit strong points Consumer points, sequentially, sequential X with past NPA
region or is credit concentration discipline and in any high-quality industry. maintaining asset to our grounded class, generating by relationships and managing granular, risks commercial, In
broad-based potential in continue of material see believe signs be will We future to industry weakness losses or commercial geographic credit no nature. idiosyncratic and
by remains our impacted a is focus on Consumer, homeowners, segment lending to which less inflationary pressures. In
change. We have conservative and conditions evaluate to positioning our underwriting economic as policies, maintained our continue we'll
Our mentioned specific and included reserve release X basis decreased the million ratio by reserves. ACL driven to $XX a coverage points previously X.XX%
We continue scenario no changes to evaluating our made to utilize and allowance when Moody's macroeconomic our scenarios weightings.
minimum buffered capital Moving to the X.X%, a CETX ended with reflecting quarter of new strong XX.X% We significantly our of ratio capital. exceeding levels.
we level. believe As our an we XX.X% capital near-term that is priorities, appropriate assess operating
During which the quarter, by we repurchases, share completed million reduced $XXX our share shares. in million X.X count
including AOCI Our X.X%. pro CETX securities portfolio is impact ratio, of the forma the
continued degree provides a our of improvement certainty expectations. the expect in in securities We the principal securities, bullet portfolio out or which cash in XX% given locked is AFS portfolio that unrealized flow our losses to high of
Assuming by securities-related into equity of the to forward AOCI of any realized, to approximately end the of accrete tangible the will increasing by AOCI securities equity XX% related XX% of back the considering back earnings. by value XX% XXXX, curve the per losses before share XXXX. end book will is future accrete
our Moving outlook. current to
the expecting environment earnings expectations the demand line better than at and customer our were outcomes we we or rate remain deliver in year, out have year. confident PPNR for full to differently of and credit the While the in with original start played ability our than
guidance January. NII year our to from X% X%, to full decrease expect consistent We with
forward as the This second in the of rate of year, curve July, September December. outlook X projected assumes half and cuts which early the
and this in we interest outcome growth the XXXX. of second cuts We also no half believe NI with can loan rate deliver no
year-to-date customer X% we now be trends year to the total Given expect compared average in down activity, to loans full XXXX.
the portfolios. be would the growth. change expected other compared similar see and we of better line Average Customer commercial rate fourth year, given interest to to to and both than up more the performance total second is in quarter quarter expect fourth this of loans economic optimism or of uncertainties. market growth in driver X% primary the economic the with consumer If of environment loan to the there's stable half XXXX the XXXX, are in demand in
compared when are quarter of fourth core deposit to We X% quarter growth to forecasting average of fourth the X% XXXX.
commercial also cash short-term revolver and our stable utilization remainder relatively Our forecast of the and investments assumes other remain XXXX. throughout
than in X% to full of to expect expected adjusted previously the We weaker income impact activities. down year be customer hedging XXXX, credit noninterest reflecting and stable demand
management to and growth expense full asset in to XXXX strong expectation activity stable expect payments In second expect the lower We in we to continue. customer noninterest year to and half, manage of this response revenue adjusted commercial wealth levels.
continued assumes sales investments growth and mid-single wealth. with additions tech outlook market, middle expense in in technology expense the digits Our payments in commercial and
open markets higher-growth XX a in to will and XX We branches have similar number branches closed XXXX. our already new in of
of an Our ratio full efficiency around outlook still year. projects for XX% the
year charge-off net XXXX, remains the outlook point to XX full range. the in XX For basis
of economic provision assuming quality While we expect second we first less build XXXX connection $XX the in resume second expect X half to provision half with credit year change release. mix release, of portfolio projected we half and the be conditions. to to growth the or full million of no builds to XXXX, than loan a to be in expect the Therefore,
our outlook. to Moving quarterly
continue We NIM third and quarter. expect and both NII growth fourth in the to
in NII cost expect up continued of third be X% the the our repricing. slowing sequentially, to benefit and asset pressures of We impact the quarter fixed reflecting rate deposit
Our of no to XXXX rate current costs, increase were cuts. just basis if core which assumes XXX deposit we points basis second points outlook sequentially, the see in quarter X interest-bearing
up We to auto continued market credit X% balances expect total solar to middle to and average from loan production expect we the quarter, offset stable corporate second be modest customers. banking demand from low
a third strength in asset up modest X% to payments to adjusted to and commercial quarter wealth the X% We increase commercial income expect banking noninterest and quarter, be largely management and revenue. second reflecting in compared
quarter personnel. impact expect expenses sales to to X% the the noninterest second adjusted discussed up quarter previously compared We third be investments in total the due technology to of and branches,
to net in point XX be charge-offs basis projected Third to range. quarter the are XX
deliver third should for year trajectory build, of $XX As expected interest growth record us positive net the statement in provision fourth around the assuming major for outlook, million income our assuming mentioned the should a income economic a performance operating outlook be to year rate to no economic the no interest are and XXXX positions in changes. the and The quarter or in change mix drive loan exit rate quarter results full which leverage that in XXXX, outlook.
positioned assuming the our that than and stable customers, moving the profitability our and balance capital. well-positioned risk With half quartile with repurchases generate and $XXX of second current worse NPR. diversified and expect to sustained of and revenue disciplined value outlook Finally, and In execute credit quarter sheet, employees. economic deliver to we and earnings, expense summary, shareholders, for management consistent share to strong streams, we long-term per no XXXX, in million our rules are a top credit are communities capital
Q&A. turn over me the it let up to that, to for Matt With open call
