Good morning, everyone.
will hear continue strong call, for the on second M&T's quarter XXXX. results today's momentum you As
April, This Turning to fourth report. annual sustainability released Slide X. we our
We goals. continued are proud progress of sustainability our towards our
for Our finance loans sustainability total businesses, efforts totaled communities. our billion. creating in positive XXXX, our our Of and are outcomes customers note, and our $X.X investments
X. Slide Turning to
Capital. to the regional satisfaction and willing according our Power awards mobile to to continue trust were and of from including among year securitization highest for garner products banks trustee the for We employees, the banking apps businesses, Global customer J.D.
quarter. results the Turning to second which the Slide X, for shows
with quarter morning's performance we are and the year. half first As noted the press of release, the in second this through the results pleased
and while inflected margin, shifting leveled first income also off while Net off. quarter cyclical loans deposits net sequentially, interest increased interest portfolio both CRE. our grow loan composition the deposit to continue costs loan. total and reducing of Customer We have the
balances CETX Asset charge-offs Capital over ratio with line are a our expected with criticized net and performing and outlook. nonaccrual quality in trends year build as increasing to continues to XX.X%. with reductions in full
We continue on buffer X.X% considerations, core strength basis earnings of capital points decreased and XX our return make and stress progress reflecting to capital risk work. ongoing power our the to our management and
in The $XXX in linked CETX growing X.XX% second Now per second $XXX to the to quarter GAAP GAAP the Included the per respectively. for share M&T's $X.XX per was at after quarter, X.XX%, assessment, recent and second and specifics share the or and $X.XX value quarter.
Net our remains quarter to results income grew of at the the X%. book for of the FDIC tangible to billion results share. pretax $X for tax quarter. were quarter increase for $X.XX an related expenses in strong, million let's earnings of quarter an this XX.XX% look ROCE amounts the ratio the end the $X special were million quarter, improved Diluted ROA of XX%. first compared million from produced second
an from net ROTCE this includes after-tax million assets $X.XX quarter.
Diluted Slide effect which any recent muted the excluded $X.XX per M&T's year's $XX effect Net mergers share. the from and for $XXX ever with associated M&T's the only for net quarter. in X.XX% share net recent earnings reminder, a in quarter, operating second as income the of or the was amounting per income gains and first of for a have or for as quarter and were of included FDIC operating or to reporting tangible operating special the As after-tax million we related to results well X $XXX linked amortization first assessment, million $XX acquisitions. million expenses compared on results and of the $X.XX the to intangible quarter XX.XX% operating supplemental ROTA basis, quarter. up
a generated into to that our was were the look results. X from rate the trends $XX equivalent from basis X% second increase Please portfolios, billion interest turn asset interest. X margin deeper points loan X first investment X sequentially repricing, of an consumer basis increase point a quarter. basis an for quarter little the higher let's within second Taxable net $X.XX costs from primary Net in a by from million of borrowing the underlying from nonaccrual Slide to the fixed was points of Next, quarter. linked X income margin and quarter points basis positive and the lower interest-bearing Positive the basis offset positive The and X primarily basis X. the negative increase swaps drivers points a higher X.XX%, or interest deposit negative balances. costs, from from impact partially points
run of $XX compared an of $XX quarters. nonaccrual prior in was interest included interest the quarter million at second The average rate. million nonaccrual to X the average If
would been by second in points total, quarter the NIM In basis second quarter. X.XX%. have XX The NIM swaps reduced
the Slide to loans to linked quarter. million X% to loans. about $XXX.X Turning leases compared XX Average talk and average increased to
banking. pay loans in finance to decline billion, billion. sequentially concentration. C&I last rate by CRE. nonaccrual loan $XX.X and $XX growth reflecting $XX grew growth declined utilization loans increase origination our loans grew As consumer mortgage auto billion, X.XX% in market. driven were flow offset manage loans.
Loan Consumer downs the and and several line Residential in cash services, hedges. higher to commercial a CRE repricing yields loans by drag fixed the X% and X% points has X been increased basis the aided by outpaced elevated and and interest higher fund mortgage at increases the partially activity.
CRE higher billion, an continue continued low $XX.X unchanged recreational in The to to our dealer as trend relatively indirect and to for warehouse quarters, C&I we growth originations X% on reflecting C&I reflects lending
Slide to Turning XX.
investment second and XX% XX the cash totaled $X.X total increased the quarter, securities. exceeded securities investment securities Our by on at points of yield the increased the to and billion. yield remains of representing including new end investment Fed, securities liquidity billion, yield The assets. the on $XX.X basis Average as strong. the cash, At X.XX% maturing held on purchases
billion and securities quarter, the duration X.XX%, an repurchased average of During yield $X second in X.X a of years. over with
duration average portfolio of at the $XXX loss intend drag yields. the basis additional pretax point or the unrealized was $X.X we X.X of the the X.X%, an billion CETX. with years security only million the Over to of we quarter of investment year, AFS on portfolio end was maturities remainder at higher an XX The yield which expect on in and reinvest
first total continued business to pleased sequential but seasonally Turning and of noncustomer X.X% growth $X.X relatively Average to decline shrink Slide XX. to quarter, the growing declined our as by all offset were customer growing billion to remain banking customer $XX broker yields. funding banking are balances with of deposits stable declined deposits.
Average billion $XX.X and the disintermediation.
Noninterest-bearing deposits had with finance in to We $X.X the decision stable deposits business stabilization compared billion, average commercial than sources. or a noninterest-bearing declined. result and institutional billion deposits focused reflects moderating in and less billion, billion of Average $X.X average lower while a lines. deposits on deposits reflecting deposits Consumer commercial for deposits $XXX.X to business mortgage other broker
in Excluding This on included $XXX typically the unchanged quarter million broker second quarter. $XXX deposits, mix million across fees $X preparation reflects quarter the increased million seasonally deposit distribution. more earned X.XX%. pricing our million first institutional basis to our decreased the $XXX business. XX. and Interest-bearing points that cost reflecting performance was in deposit income rational to XX.X% strong to to total in in deposit the second Trust noninterest-bearing cost quarter the $XX compared linked was XX.X% services Noninterest the in million $XX Bayview X.X%, Recall X income at the million, tax Slide markets.
Continuing while quarter. sales approximately in compared first was
first $XXX $X to in to increased origination million, decreased million servicing the million $X quarter activity the $XX portfolio. uptick our reflecting $X increases million card, realized mortgage while $XXX our with from $XX sale debit million revenues fees at to million, from $XX linked mortgage credit credit non-agency letter credit-related Second in compared lower quarter losses quarter an and discount, operation we losses as were offsetting fees primarily reflecting of increased the mortgage fees charges of $XXX the interchange million other million Service million $X in $XXX quarter.
Commercial higher residential fees. Security securities consumer distribution. million BLG million merchant were from first derisked fees unchanged reflect on fees.
Other to of
$X.X Turning billion, decrease million of to the from Slide first quarter. a were XX. Noninterest expenses $XX
As is seasonally merit offset the $XXX impact to first for included reflecting million Salaries elevated expenses by compensation first typical expenses full the results, in of quarter $XX annual M&T's higher million quarter benefits $XX the approximately million, and decreased of increases. in costs. quarter seasonally quarter,
$X to from adjusted assessment efficiency FDIC impact Other quarter. losses decreased included was $XX of lower million quarter special $XX to terminations. costs the costs $XXX compared million supplemental and to the special The compared first lower FDIC assessment million related the XX.X% in prior quarter. in the retirement executive XX.X% second million and the on The operations lease ratio, of excluding to
reflecting increased $XXX and billion. reflecting that including and quarter, partially Form XX compared linked $XXX Net X.X%, to was driven quarter estate losses C&I Slide including payoffs decreased manageable in XX. forecasted the decrease million and XX-Q largely Slide the within file level of by largely the dealers favorable provision retail. totaled modest loans. in of largest industries. for we in span lower improvement increased or detail basis dealer few balances. criticized care loan Slide second charge-offs, loans, points paydowns. compared X.XX%. other Total finance ratio year.
Nonaccrual weeks, million will The to C&I through turn declines points portfolio, and we net be to the $XX saw in March. XX of to to portfolios.
Please consumer most turn prices, non-auto let's the industries, were majority on driven growth Next, of we first credit including for vehicle basis $X portfolio discussed CRE a recorded linked and and CRE to by in represent our criticized for additional at loans we real The sectors, quarter quarter. decrease The by office in a loans criticized CRE basis criticized offset by the within health charge-offs CRE XX first the migration $XXX $XX.X the remain decreased with provides $XXX half of within is to $XX.X points offset criticized quarter. $XX XX point of $XXX million. in the for recreational billion to million from loans and end the C&I billion charge-offs trends The decreased million. estimate to improvement In a criticized The C&I loans including the million down allowance continuation additional The combined balances quarter, in X XX provision borrowers, concentrated million We at manufacturing $XX increase that When nonaccrual basis million from compared charge-offs the resolutions charge-offs first credit. to ratio The levels services, X
has quarter. second in there been portfolio However, early limited the within migration since the incremental
increases across criticized from into decreased and favorable industrial. reflects services, includes XX work CRE construction, the The and balances upgrades payoffs on criticized quarter, criticized CRE effects million the resolutions. and modest the we Slide detail to outpaced downgrades retail, to of but was did with multifamily, $XXX borrowers balances. The health decrease decline Turning office loans last see find criticized. hotel to in Total
our population criticized favorable outcomes. working We are through for actively
end the impact pause quarter compared second continued for increase an and to quarter, components CETX AFS would to generation. was the negative first to approximately ratio XX the XX.XX% at the the shares AOCI of of in repurchasing quarter. pension-related and points. at part end Turning the ratio Slide and estimated end second basis XX securities from be At in capital due capital. the the the XX.XX% strong was M&T's capital on CETX of The
as see having to economy for remains job rate pace a recession has hikes. remains the growth, turning growth, soft longer health, scenario so-called slowing wage lagged Slide labor is the keeping spells a brought We consistent Now services.
The wage impact and turn, possibility slowed to more the has landing pressure pressure a on but a lid spending bit, XX and in outlook. job alleviating positive goods of levels. slowed growth for to market wage but slowed. the remains have The highest sustainable with good probability, mild inflation to and Consumer spending many of by unemployment. but In clearly for on and leading
rest that We figures for expect the of rent of home X%, of above the to continue chiefly XXXX. We remain Fed's prices. because Inflation target and
the encouraging We expect Shifting slowed official rent quarter. inflation down.
Inflation in bring listings the first headline helping to the outlook. and in in the after second quarter the figures XXXX weaknesses to through seen data the ratings inflation play higher development
to $X.XX be to expect $X.X billion. interest We income net billion
has another in X December. cut Our that outlook rate in forward the curve and incorporates September latest
expect interest and on we income NII longer we to a rate allowed [indiscernible] as more of lower protect the asset steps to now the the interest additional rates direct level and have year environment. net to take reduce sensitivity actions us have half However, to neutral. outlook, taken first rates our are effect of in from limited
half the forward securities $X active the in flow XXXX. first we shifted For added billion into in billion $X became cash cash which example, hedges year, of in starting of and
During downside be of the -- we interest-bearing approximately first cuts. in to rate or XX% XX% expect the further, deposit in will couple beta that
billion. will assets year, M&T's For $XXX average to sheet closer be the remainder total of with smaller the balance
be loans We to in billion expect approximately cash with and be billion modest and $XX deposits. $XX securities growth to average
Our the expected $X.XX and billion. amounts $X.X fees to gains billion, FDIC are fees, $X.X security unchanged, be to is of special to expenses, to outlook related with expenses for and losses excluding assessment any $X.X the or excluding billion billion
portfolio basis The the year in macroeconomic be level underlying XX the We allowance on to points. continue expect charge-offs to full will outlook, for dependent changes and many asset quality. including be near factors, mix
first J Our is the the our rate discrete $XX outlook issuance approximately million tax Series tax dividends expected the in to reflecting the third quarter are Series quarter.
Preferred quarter, million in and the in the upcoming fourth and August. in for in excludes XX.X% XX% to E be redemption $XX benefit May
consideration return significant as remains Last year. capital for bank the million The factors it in we continues as we capital. to rest Finally, relates M&T assessed quarter, our capital of laid the environment healthy. second X out common generate growing the plans quarter. for equity of $XXX to macroeconomic tangible by over the
our percent manage the to with concentration allowance as of continue X quarter. the CRE We end of XXX% second of as Tier CRE of a and capital
stress first to and line factors declined in continues preliminary with declines the of Asset we nonaccrual in expectations quarter. M&T's loans quality out improve with reflecting just criticized to net many charge-offs the in laid points basis mentioned. capital and XX buffer X.X%,
quarter the $XXX million in at quarter end the our third the of through improvements the year. we pace these repurchase per a plan Given begin to in factors, share of
maintain at current for least the ratios levels our of capital remainder the the We expect year. at to
continue discussed factors Basel III We revised monitor and proposal adjust public, return once our as well to plans if capital the made will necessary. as previously we'll the
Our also new capital relationships. growth and used will support be to customer organic grow
XX. Our on clients, differentiate rating strong and our to us continue with communities, Slide investors regulators agencies.
To balance conclude sheet will
successful investment a all always model thesis. optimistic with an benefits been underscore including results purpose-driven business Our M&T organization shareholders. a has stakeholders, that
remain returns of long economic serve. focused markets have and on while within credit cycles growth. We we consistent outperforming through a track all shareholder growing the dividend record We
capital. we of acquirer [indiscernible] shareholder a disciplined Finally, are and
up review the which briefly questions. open will Ashley let's before Now instructions. to
