everybody. morning, Good Bryan. Thanks,
off start X. on Let’s Slide
really As and of we see we expected think we efficiencies the benefits is the and execution year. delivering capturing the really merger merger to The half the synergies in which enhanced continued with that from the we are only pleased are starting here. platform, mentioned, Bryan ramp of revenue the across savings the first additional the will
or our exceptionally reflecting on of adjusted $X.XX resiliency we basis, business credit Bryan performance. GAAP $X.XX of model balanced As an the quality delivered said, and strong EPS
improvement And benefit the $XXX and perspective, experienced with quarter first our fee quarter macro environment recoveries quality with including $X interest results asset million million from the of million. exceeded combination and in the lower than albeit credit in income, grade as upward recoveries continued expenses net portfolio of perspective credit drove a loan and I incremental and outsized From the expense repeat expectations – strong the this net quality, an Our migration a quarter improving income saves. persist provision in of cost own levels of in $XX a of headwinds the net expectations. expected, delivered were in the revenue merger-related we line and with continued we
I of our we the make million $XX fact, million million annualized aggregate first target, $XXX on outstanding those have of an $XX for we are of progress in loan systems recovery synergies for via track on and on to nice more the We consumer revenue We commercial platforms. we continue across final savings serve $X businesses conversion half our briefly cross-sell progress synergies track portfolio and towards that At estimate savings and for net the base. are those talked all the sheet the with customer same $XX the annualized various roughly In million in leveraging broader of currently fall balance year, about to time, a come to remain net billion on revenue those with across our performance. quarter. making
in merger-related Turning notable quickly to Slide items the I quarter. review X, will and the
after-tax consisting As $XXX in of And to million saves January, and of we reinvestment merger a million saves net million or of from share our you gross raised $XXX cost million. items. merger-related had cost know, you as expected $XX can $X.XX notable see, $XX of $XXX million, we
be We continue confident to savings. in achieving these
this are increase largely addition, merger pre-tax we expecting driven million, $XXX In now about three total components. to is our cost by and
tied integration. recent connection more in is make with to First related product developments and to to the elected enhancements capability have we
more of the our engine and the is think making it while as we So, car prepare lift systems speak, the for durable on powerful conversion. to as so
post-pandemic that the of digital our decisions branch upon. now towards total as seeing staffing shift level given we level around and increase mix and XX to caused accelerating have closures branch vendor complete are man And have a branches, constraints see we of to required closures, integration. ultimate costs an have that expect we the to finalized third, higher of in adoption, of hours plans estimated technology but those our we Secondly, cost close our decided both given the a still impairment the
revenue cost And an an sense. adjusted is future in spending to We important it’s for believe makes addition $XXX overview of business that of payback Slide and of our we still saves position we note points financials the the of our already quarter. better provides for So, are basis estimate good incremental synergies period the PPNR long-term seeing the the original line X years. X the X increased generated capital about of well us million. on with far to
compared expected, cost expense continued revenues benefit merger decreased muted incremental reductions, from incentive as mortgage higher pressure. which As $XXX some first. million, for was the and macroeconomic NII quarter we opportunity we costs. Adjusted the In reserve linked remained with our improvement, sit dependent, of relatively of expected likely. expect of further the today, of low impact to here given mentioned, of and the book the in talked levels pace is financial be of as macroeconomic factors, provision was strong of from see positive adjusted in XX% performance. more releases positive million million grew borrowers The before likely was fixed we XQ statements ‘XX saves about levels is fees, Bottom long-term generated we releases $XX X% provision all it the this less as future next banking for improvement XX% X% credit, very, that And including but course, grade to ROTCE quarters. net several quarter, And along further stable there Bryan at credit, strong factors of $XXX by income though, in pronounced those updated and reserve received per very line we or migration over grade QX, as further than be two value charge-offs with net tangible be opportunity impact will positive an to the migration. share strong by quite upon
also driven were We basis. the Moving billion, basis core down spread collectively competitive expectations, an Both basis the cash. excess performed on in quarter levels of increasing new declining quarter. FTE originations cash which linked to We ended with compared X, did quarter on and with runoff, basis higher from quarter, Slide NIM. pressure to landscape NII at million impact of balances by the X about the about and from about points tied XX linked translated billion loan line $XX the lower in to on $XX.X points experienced given XX NIM up points reported tightening $XX.X first see to
are the and of quarter our And rate as rates pressures, and supply those discipline we basis. points, constraints, interest deposit up in At warehouse deposit loan is an demand. we from well-positioned we mitigate we our and amortization forward, accounting. face are XX% continue sensitivity, on we muted down housing a change economy. shock very basis end, pressure or our excluding premium the lower pricing believe lower and saw In to quarter to and basis XX and these benefit environmental of the rates an XXX Given very, costs to sensitivity decreased the X% and increased outstandings control NII Interest-bearing helping to purchase points about X remained LIBOR. controlling were of overall on was in we look from continued about improving gradual what focused stable can impact mortgage
continued reflecting high fixed immediate at very for dynamics, given million, to system strong $X.X ADR loan environment Mortgage higher the Moving favorable in first came at to quarter compared banking fee a in operating demand. million the income Slide with XX, at income of levels. first and and taking look banking million cash the came business in levels quarter compared $XX fees $X.X of title
our in lower gain quarter-over-quarter, XX% While up strong, reflects lower sale on The fee spreads impact banking mix and income mortgages. with an that in balance mortgage to mortgage our the business, shift of intentional platform on portfolio. towards was housing fee sheet were very overall lower shift income constraints, originations mortgage origination across intentional supply
is securities for adding assets a compared on believe alternative we here focus customer-oriented which to as better Our relationships, is purchases. interest-earning
in the Importantly, we benefit was million which relative note see Adjusted a expense lift million $X expense you across and look card income, our the IBERIABANK was driven million a footprint, volumes. we levels strategic finally, will line, increase look of saw a decline saw given occupancy legacy to investments. quarter, $X take a linked investment. first to our tied growth the other of we million Personnel economic nice reopening profile. a revenue with at a equipment more In I quarter. our was offset increase a funding by largely banking million in $X and increased and loan driven decreased caused given $XXX digital gain, the software in million overall services activity largely a performance-based and $X And XX, $X securities and stable $XX line. equity partially by increase our to outside post-pandemic about increases million some incentives and which and finally, in an by Slide increase would that expenses. at in momentum Slides a incentives. $X related equipment, And XX, fees taking long-term transaction million markets XX related the commissions to in
believe companies mortgage down million about quarter, million. by loans $X.X in $X.X was billion balances about with that’s see our that PPP and $XXX decrease in about down were XX% Last balances. commercial the around average billion increase was lending $XXX You can down partially our moderated quarter to in in in that allow about in with a forward, a we XX%. gain our million mortgage benefit warehouse, we overall that volume the quarter, consumer loan the Commercial and volume-related by impacted to $XXX refi warehouse offset PPP second to more And and half as in some us will we strategies commercial did of in mortgage do a mortgage of warehouse we look to profitability. share second balances, business continue outside our net hopeful, And which of the see are year. lift will
low from surprise again to million, down asset X starting million quality, the are with last reopen. with activity at a bearing points, Slide we including upside. and second to quality mentioned, we to points million Total We saw the a about increase average optimistic benefits recoveries billion with Quickly interest-bearing $X.X with $XX a inflow to commercial continue side, balances, of $XX liability XX markets recovery costs points deposits non-performing Bryan on overall basis loans deposit driven continued non-interest the As round quarter, of or XX. our the deposit economic as levels by XX. basis credit had in at continues continue path decreasing basis PPP. costs XX – the of from On be deposits, XX, increased net of $XX the very
Given positive those XXX net credit, to outlook, compared loan in ratio at with allowance and XXX the by coverage balances. basis grade driven came recoveries large the losses the continued provision quarter points in credit lower last migration, the improvement
at as our loss capacity, very well warehouse on healthy As acquired excluding a unrecognized discount as our and stands absorption see, you can PPP mortgage overall X.XX%. the loans
performance quality best-in-class credit of levels net Our excellent. the our And experiencing to low all that expect charge-offs, we and while is peers continue. are among is
by at earnings Turning Bryan up assets. Increase quarter about is a repurchases return points healthy on and reduction as driven in by XX, risk-weighted dividends. partially to Slide growth and capital ratio Bryan in so CETX capital a in through XX.X%, XX basis the mentioned, talked or was offset the about retained
capital to structure. both expect deploy with optimize We strong capital levels and to remain flexibility our
since little Moving it’s we Slide very integration and on than to merger we with on more our to closed XX, make continue IBERIABANK merger good a been a year progress.
We expanded retaining are the focused growing services. on and and products client our base with
in you As Finxact million a fully on we consolidations to and core as fall annualized achieved conversions systems talked associates round our conversion, core. early And we customers all bank to card systems. our our new we well as credit coming prepare XXXX plan trust banking wealth, first of center savings. successfully for complete training run-rate our in new about, the we In see for virtual months, on we $XX July, cloud-based converted and
with April for on our outlook quarter quarter you year the third providing XX, to are and XXXX. both results outlook line of we our in were to an provided in the the this full outlook Turning we Slide and
You quarter, reduced modestly can the lower low in NII of to expect see rates do the continued outlook we accretion. and PPP given the decrease and third merger impacts for
to expect the lower income be to double-digit relatively fees. anticipate fixed low-teens banking we low range to due in down resilient income we our do business, fee While results in mortgage
range We through. saves our in low comes to ongoing and the focus expect on efficiency merger expense non-interest decrease single-digit as cost
to reserve reasonable in it’s be points X range outflows. basis expect the We see to XX charge-offs to continued of and
in basis the single-digit remain to now We in XX% in expect to charge-offs net XX.X%. CETX range. mid and XX.X% to income with range decrease the X a the point our expect XX non-interest XX% We to CETX
to As Bryan perform about the good positioning given we feel current the ability economic mentioned, our environment. well and
on positioned of we capitalize franchise. our model well on XX, Finally, are Slide to and opportunities business
would we just are performing businesses fee income expected. Our as have
We expenses. are controlling
driving down deposit We are costs.
investments technology. making We talent are in prudent and long-term good,
returns in and and We activity Credit near-term reopen. we markets continue quality future. seeing good business the deliver is to we attractive are will as believe excellent
I as the than colleagues, my I been Bryan, for that. work have have my procurement, investor since I the am of reported with is could my and we final January that note, that. know hope colleagues wasn’t quick The I whereas given It’s have soul with. a me you of Just First Horizon. Horizon been and I I it I XX, my more all absolute leaving First properties exactly performance, and right, community strongest. and you to provide XXst XX.X my XXXX. earnings and first accounting, and I I I and our proud the try a That to we it in put fact so you right to the today $X.XX, a at And my enough confidently, to for always your challenge friends want call I years its arguably to company accountability enjoyed on an it’s and forever and always today, ride a to when grateful call earnings started results know, say Board, pleasure is is thank at and ever company. experienced many to positive was day, support seat. $X.XX. at heart into the report returned loss of at it’s thing to weakest quite I people thanks do be groups here time intellectual here team this finally, executive when my am much place but fortunate am its of finance,
back it over turn I’ll to So Bryan. with that,
