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that have an now we earnings I'm me, happy you all sure extremely Like are of presentation.
corporate making have even to reporting gone and So a for I transition doing corporate work I'm and than could teams about the thank you smoother the very are we investor communication relations, reality. this anticipated. excited has
in focused be principles. philosophy, lives. M&T's to a of that part I'm purpose is a and strong even be conservative to consistent proud difference to make I'm operating to financial its company people's tied of prouder part banking community history,
like work over and for to hard thank XX,XXX each their would day. our colleagues all M&T every I
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Please turn to three. slide
operating with mission principles. start our Let's purpose, and
purpose in serve. people's on difference we focusing communities make is Our lives to a by
drives our operating principles. Our purpose
local and scale decisions and capital higher activities. scale presidents has This We regional share us and who credit deposit believe make XX about with performance, community-led efficiency. community in led to superior loans top operating local
Our is a relentless on and performance focus by customers, fueled talent communities.
We four. slide to deliver Moving customers. for
to our We and solutions that let's Please diverse turn our have This principles. slide purpose make showcases we how customers. board capabilities new slide provide difference meaningful that our talent, five. to seasoned a operating through activate
our and succeed. succeed, customers all communities we When
branches in Our impactful milestone products significant a come our banking more customer of customers. enhancing to to investments over year designation across and XXX A fueled community multicultural a with communities. organic assets was fluency our footprint, our for in this are expanded delivering branches the have cultural experience growth. These dedicated
vital We also who communities. small supporting role a in business play believe in owners our
country markets. and the XX highly ten rank lender the XX ranked our six only states, in operating as SBA Despite in in we of number
residents. the Our low communities with we financing XXXX home over in commitment extends to supporting moderate $X.X loans over to affordable billion housing and projects and income serve for
Additionally, M&T Please alone. Bank and in to over our turn our to 'XX charitable communities foundation $XX six. million granted support slide
to the commitment our highlight environment. we Here
our renewable XXXX. significantly energy sector consumption $XXX have reduced electricity and invested million We in over since
the slide be report you published Our some review to of encourage highlights. for ESG I but will soon, this
eight. slide Turning to
the Trust million April. the Collective business the second our results Adjusted sale pre-tax from or exclude Our power to sheet position. in balance earnings of quarter strength Investment and core $XXX of reflect liquidity the gain CIT
positive XX% similar year's million revenues grown to have operating leverage or quarter. year-over-year. XX% compared last quarter to This $XXX a Second translates
the basis, net billion. $X.X increased last second Credit to XX% since same remained quarter stable. revenues On pre-provision have year's
remain XX% long-term second share year-to-date $X.XX in GAAP but second linked-quarter. below our quarter, quarter, earnings $XXX sequentially. historical million, up from the the average. was increased the Diluted up for Net charge-offs per Net still XX% quarter income was for
Now our net on $X.XX linked-quarter. $X.XX share XX% first operating year's for value the the recent $XXX earnings net quarter. share to quarter net were share intangible slide operating in compared to quarter, income nine. per this let's M&T's review for increased million, for Tangible operating up results second was excludes which common $XX.XX. per from book quarter the amortization, Diluted X%
GAAP return M&T's on XX.XX% an results you average on common average return see ten, that, basis, will produced equity on second respectively. annualized quarter slide of and a and On assets X.X%
year of this gain CIT Results $XXX quarter the sale the April. second for on in an million business included after tax the of
assets gain, Excluding GAAP earnings $X.XX was and average average and X.XX% this shareholder and return adjusted per common share XX.X%. adjusted was on equity
slide that to funding Next, turn Taxable net by into of the second deeper and change second income results. quarter, generated let's interest slightly and Please our look higher higher billion quarter driven was interest was below little $X.XX trends linked-quarter. caused a the equivalent rates This XX. underlying in one day. additional by mix non-core unfavorable disintermediation by decline bit volumes partially offset
points of from was partially primary mix the the to impacted basis The for was past which the Higher points. estimate basis deposit funding, margin down Net funding decrease points. to reduced the linked-quarter. four on net change cost assets, driver benefited interest yields higher the quarter from margin X.XX%, the by by was the margin margin rates basis XX earning on we XX
due the growth at the Average billion or quarter increased assets quarter $X.X securities. average CETX remained second quarter earning levels XX.XX%. billion first X% slide average billion from the to largely investment increase the end second to $X Turning Capital ratio to loans with the $X.X and in XX. the of to strong in
quarter, to up average linked-quarter. second on the $X.X loan the loans about the drivers and The billion compared we XX, talk $XXX.X were to billion slide Turning during growth. leases the total
compared an X% Looking at increased Commercial category and average basis first quarter. the loans industrial $XX.X billion. the loans by to to on
We market and dealer share grow we customers Plus, in legacy as new and our we to continue markets. specialty in are see new businesses. adding
average During largely due the construction year. activity billion, estate to lower driven driven balances. rates. to $XX.X flat consumer X% by The to by commercial residential rising the Average second billion. loans $XX.X loan were X% compared estate real quarter loans this essentially real interest decreased loans Average decline $XX.X to billion, down quarter, were of lower first was
at $XXX securities the end first $XX.X slide of quarter June quarter. the The to investment at loss of end during Average the large for late unrealized securities X.X to Turning book and the sale is the the increased billion due was purchases XX. part million. the the to of investment years only on duration pre-tax second to available
At end and interest-bearing and at of totaled $XX.X the bank investment the cash deposits billion. June, securities
an for Turning the Consistent quarter industry $X.X leading in X.X% a billion basis rising customer behavior our to to increased deposits to slide the with trends. accounted base and with competition mix the XX. deposits. or line experience higher Deposit on cost average second rates, for is outflows during with deposit to prior shift
yields average resulted deposits deposits a the decline deposits decreased Savings $XXX while first to Comparing the and increased average while time second demand predominantly in interest-bearing million billion deposits from $X.X demand deposits declined billion. billion. decline checking $X.X $X.X movement quarters, The in to customers accounts markets off activities. quarter. on balance $X.X higher $X.X large sweep and to sweep billion shifted sheet capital in to due part corporate a balance the as second products seeking trust The billion with sheet balances during lower
In was billion period, billion balances, growth the and grew CD by $X.X growth the quarter. growth by $X broker billion first in $X.X from to deposit linked-quarter. driven consumer end growing was driven We of CDs deposits. brokered time billion the the increased Average retaining The end on X.X% remain the which deposits. or focused largely compared $X.X and time of deposits
wholesale customer deposit with end to largely of and $XXX have by commercial increase since deposits. in balances started our and an However, grow consumer May, driven stabilized the million, for of growth base
non-interest income. to slide Please let's turn discuss XX. Now
$XXX totaled in compared the quarter $XXX Non-interest linked-quarter. million income second to million
sale the year. our distribution quarter $XX quarter. million business. As from quarter year's annual the that Group the a from million an first normally $XXX CIT This first Recall M&T the distribution was Bayview Lending of this noted second in during receives of earlier, gain included
first XX% bulk the the from up Excluding second income $XX compared the by March. increased to quarter, revenues million of MSR end driven non-interest full banking Mortgage the were at recent purchase million these quarter. quarter revenues, two linked-quarter, impact in items, representing of the completed of the in servicing $XX million $XXX additional quarter
resulting from to Service charges tax impact business, $XXX the Trust declined quarter, quarter. income sale due compared the partially of million million in of deposits quarter a $XXX the offset on or million to X% in from first the largely up income recent seasonal of fee first lower the $XX million the were CIT in the fees. $XXX preparation by
from from $XXX down gain adjusted the quarter operations the sale this from $X the were revenue CIT Group at sequentially. Lending first million distribution Bayview million, year's in Our and
second of down Turning to amortization million this were slide in the $XX Operating $X.XX expenses, intangible which of assets linked-quarter. expenses. exclude quarter billion XX from for the year, the
the million typical included quarter approximately As of operating expenses M&T's in quarter results, costs. higher first $XX is for seasonally first compensation
average costs to increases in million and full That higher million Excluding $XX related MSR bulk expenses $XX severance and costs of to operating first a annual was the other merit the The higher the quarter, benefit in increased compensation million increase operating seasonally in the due expenses sequentially. of compensation higher purchase. the impact higher headcount. $XX reflecting
lower and increases deposit partially offset and These expenses, advertising related expenses insurance $XX adviser CIT lower by lower million and of expenses. marketing including were sub
growth, of prospect on expenses. diligently the managing Given remain we slowing revenue focused
which from the and and efficiency excludes of the the in in the the first quarter, numerator recent was amortization compared second to quarter, gains XX.X% related sale merger the security the CIT excluding and was from ratio the denominator gain quarter expenses business, The ratio, losses efficiency intangible XXXX's in from XX.X%. the XX.X% the
slide of recorded quarter, to first losses XX million we losses provision to let's to from allowance amounted the the end The the end up linked-quarter. the at $XX in for million credit billion turn million quarter, $XXX In compared $XXX and Next, second for $X of the credit. credit second quarter.
decrease commercial down quarter, $XXX in the loans quarter. reserve loan second The the sequentially. largely of nine non-accrual represent a build charge-offs million to first declining estate million the this anticipation end X.XX% values of of the million basis prior a second $XX compared was year's to due quarter were Net billion, and and to $XXX were $X.X in real of At growth. points compared loans quarter
amounted noted, Washington, in and D.C., As $XXX one buildings for The driven the in net in operating company three recent by City health credits, charge-offs large four million. charge-offs and York was office to large quarter York net increase State. New New care
loans were the which second in basis basis total the of Annualized basis points charge-offs net our net percentage XX points points. quarter. XX charge-offs to long-term XX year-to-date below as This a first to quarter, points, basis average compared of for our brings is XX
As we rate property risk, each the and we basis. In net have risk, resizing noted could to tenant unique that quarterly sensitivities a a adjustments, emerging grade on estate a previously, lumpy be quarter-to-quarter of on real identify commercial lead we on result basis. issues loan to of continue This nature to is borrower. ongoing order portfolios charge-offs to expect perform
of sequentially by days This continue past quarter entities. work the and at compared million accrue the million is loans to guaranteed past related were government XX% our XX to $XXX $XXX Loans criticized portfolio. of or loans we or which due total first due in XX end days on government the interest these reflected loan
CetX first to the an Turning slide end was at June due XX.XX% of M&T for the in the quarter. at to and repurchasing ratio estimated XX higher quarter. shares the compared second The income net capital. in was increase to in of XX.XX% end part
X% equity of from shareholder In up quarter. the per end the common June, the end prior at up the value billion, from $XX.XX, first Tangible tangible totaled book share quarter. X% accounted of $XX.X
stress results test. Reserve bank Federal released the June, the from annual late In
stress acquisition, M&T this year for While timing the in the the People's of test banks, participated off this United IV year. an Category given was
SCB be to estimated Our test or buffer preliminary is capital stress X%.
CETX which ratio. Using to XXXX XXXX SCB, the in will effect September XXth to X.X% from be is Xst, October of subject
Now the for turning slide outlook. to XX
are second we forward challenging through to look to we year, conditions. of navigate positioned As a believe we the this economic well quarter
business this XXXX of in expectations, with sale the on affect of year for rapidly rate XXXX. the combined insurance changing The closed last funding, full and interest of outlook CIT the continued year. M&T However, April in impact October our sale the the of that closed reflects pressure the agency year outlook of that the
First, outlook. let's talk about net interest income
loan expect flat the $X.X this XXX to growth of range, to taxable income to which equivalent basis of a interest billion in deposit $X the modestly billion higher We hike point reflects toward end August net incorporates trend lower and and year.
on the will a earning of income assets. be first key ability to We net noted the driver interest call, in quarter fund efficiently XXXX
continued industry-wide of intense to deposit be competition expect outflows. for We in Full single-digits balances are to compared average low up face year deposits the expected XXXX.
We year towards of higher expected This translate cycle range. XX% interest-bearing to this through deposit mix sheet declines beta time and in the quarter cost the and deposit mid shift deposits, continue fourth the to balance demand through deposits to low in expect deposits to sweeps. on of growth is expected to with the
beta deposit deposits. excludes This broker
be should let's driver discuss outlook for asset the of main Next, the earning loan growth. growth, which average
be year consumer leases estate and consumer average one-third end The full relatively inclusive loans almost to the stable. C&I, of of the expect loans loans real June. each balances as mix of XXXX of during We is CRE
this to C&I shift to expect We growth trend CRE. slightly outpacing
As of of consumer our the we have remainder loan the seen book expected XXXX. four of past interest are rates higher the to levels down slow quarters, growth over over
to fees. Turning
of be the income the trust income This billion the the quarter. lower well as from business to of $X.XX We for reflects incremental residential servicing from at range. CIT to noninterest-bearing mortgage of rights the first as resulting of billion year's purchase sale expect the range in noninterest April bulk in end revenues this $X.X outlook
the from the gain business. $XXX of include outlook million sale does CIT not the the Remember,
trend We $X billion to intangible expenses. the higher near to anticipate Turning to expenses end amortization excluding of billion. $X.X
sale expected to outlook range. in and million business $XX bulk the addition, the In million mentioned be for includes expenses this is net to servicing amortization previously CIT operating of the of purchase. impact mortgage the $XX the Intangible
credit. to Turning
average XX loan points. losses to basis expect M&T's long-term We be of near
be cadence in the and CECL changes follow Although could methodology provision affected over expense the quarterly outlook the macro lumpy, balances. and be will year the by loan
range. For to XX% expect rate equivalent XXXX, taxable we the in be
it relates is to for as M&T. clear this Finally, differentiator capital, a very
Our has our and has times. during turbulent market clients safe extraordinary. limited proven with our been for of a to clear capital, The security strength balance communities. M&T be these coupled a haven sheet investment is strength our
and appropriate We do will take responsibilities more our when very it's to that. return capital manage shareholders' seriously to our
and growing performing every are Our very businesses we are well, and day. new relationships each
said, related Given be our use part coming future, are our which the distribution the core buybacks growth to we are not new with capital out, to in now best inorganic that the both is capital always time rules of capital believe will uncertainties the organic to we repurchasing strategy. be and shares. for positioned along That
communities, balance our and sheet on with will continue differentiate investors To agencies. rating regulators, In strong to clients, XX. our conclude slide the us meantime,
optimistic Our investment results and underscore thesis.
historically Our M&T economic has is outperformed and its uncertainty remains when high, that peers.
shareholders. all model stakeholders, including been has with M&T benefits always a purpose-driven business successful a organization that
long relative all cycles through growth to record peers. a of have economic than more two with track times We outperforming credit
return returns XX% shareholder equity growth. and XX% common strong include average on Our dividend tangible robust to
Finally, and we capital. acquirer of steward are disciplined prudent a shareholder
of is we integration are confident potential our People's realize and in United ability Our our to post-merger. complete,
Now up to the review before Todd open questions will let's the instructions. which call briefly
