and everyone. Steve, Thanks, morning, good
by $XX results. our higher the related of EPS We share from earnings primarily The items, to was adjusted of driven highlights X bank Deposit year's Slide $X.XX. FDIC special Fund of Insurance $XX provides of quarter million million, of common and losses last updated fourth included $X.XX failures. reported per which notable assessment GAAP quarter
that impacted we quarter. finalized $X.XX were offshoring These incremental $X of process Additionally, collectively the to items share. per incurred million business costs by plans EPS related common during efficiency
deposits for during deposit million continued notable the ROTCE, common increasing by at Adjusted Average by XX.X%. Average totaled for the Allowance or end. of beta tangible ROTCE quarter. increased X.X% to for came at and X.X%. the $X.X or quarter or X.XX%. equity, the billion was charge-offs grow XX% for Cumulative XX.X% on in quarter, balances basis stable quarter. was Return ended credit Credit strong loan losses XX quarter through points. $XXX with quality net remains items,
Turning to Slide X.
noted, I year-over-year. by quarter-over-quarter average As balances increased higher loan and X.X% were
X.X% loans For the quarter, a increased at annualized pace.
the growth pace loan course XXXX. of the future of We to over accelerate expect
million. included led $XXX million, the finance, commercial $XX declined quarter, million. which balances for distribution increased increased increasing from Commercial was by total $XXX $XXX benefiting normal growth growth loans with commercial CRE Auto million. Loan by floorplan by by balance seasonality.
relatively Within basis. commercial loan and saw other as production regional sustained retention we business commercial, production of the of SBA strength result balances sheet. net were All banking and portfolios other unchanged notable all a on balance levels continued in on a
balances as auto flat $XX well declined speeds. In RV/Marine however, quarter. prepay benefiting home as $XX on million, $XX lower for slower and by basis. were residential by total consumer was Average increased $XXX overall the balances loans, million. million, $XXX balances average declined million, average increased by Within by mortgage end-of-period production by million from an consumer, equity
Turning Slide X. to
to rate quarter. As for a this deposits XX%, deposits have consistent continued cumulative Total $X.X noted, by ended solid decelerate billion we our drove Average deposit the X.X%. another quarter-over-quarter cycle. at of the increased year-over-year by billion quarter first increased $X.X On and beta point in with in deposit growth. or basis, expectations
fall out compared see long rate clearly cuts unchanged, outlook a been so from call. when beginning is have to pushed few trending then a current higher beta cuts. for deposit points the we for revert Fed rate expectations and earnings our January Our percentage pause as Market there remains to and
cuts to over time, be the from be will pause continue and the there rate function this will believe impact beta in duration that of the We of a Fed.
tracking our quarter. forecast. Slide prior $X.X to shift X% Average is mix from decreased Noninterest-bearing noninterest-bearing by to Turning the X. closely or billion balances
moderate stabilize to and shift during mix XXXX. this expect to continue We
On Slide XX. to
X% interest revenues and margin Net past growth, X% our net billion. years. to million to interest with declined at net quarter, X the CAGR X.XX%. a the growing from by asset sequentially have we cycle, over For interest earning the income $X.X decreased over Cumulatively, asset $XX or benefited sensitivity
other the NIM QX, was from hedge and Reconciling decrease lower X we due points. a including funds, benefit saw positive drag cash basis which along net X from points to of impact. from This free for of Fed basis spread, change primarily with lower X basis impact a basis point points, in lower items, average accounted X
from We benefit fixed continue rate repricing. to loan
fixed repricing and opportunity asset retain portfolios cycle. into loan upside through rate in We far, portfolio thus have And substantial XXXX. increases seen XXXX in the yields, fixed of notable our many rate
scenarios reminder, both of action the to economic short-term as a wide The and as well plans a of range rates analyze continue As basis we potential interest level the and rate of and slope develop those to tracks curve. for our in be fund current low set of scenarios closely to a Fed includes central by X end a that and dot on XXXX, Fed guidance bounded planning continues plot. the which the cuts are scenario for that
of to Fed and the stay driver of for with important fund This durated an forward scenario is the The note higher for It's no repricing aligned X-year rate asset the this longer to points. reductions also the assume curve time level curve rates March X- from of year. our the in longer, points that spreads. important term higher to is end scenario
likely as the most scenario remain believe end. time scenarios, to This above In we out points that continue assumes will be also next cuts levels both the we some we these longer point is project it at eventually year. or durated rate into XXXX, further at at of quarter as get into there
the Comparing some expect funds given beta, outlook asset our the the longer, now our have guidance, past benefit. volatility which belly outlook which those changes deposit Both latest range and drive on improved, certainly January been of support rates will to we has elevated of scenarios quarter. will stay for curve also for scenarios there Fed of the incremental repricing shared yields the while over to
year. out course to the environment predict difficult play how It's will the of exactly over the rate
of rate look outlook our our the fundamental unchanged. we impact elements the at As on of this prior remain guidance business,
a to seeing for higher rate growth. is And that the range the view cuts year, of has somewhat expected overall than year our been the our pushed both out. full If as this be outcome maintaining our we're much plays year for the a timing previous At in out scenarios. could we're points as revenue NIM costs, There's margin, left the spread lower funding guidance result, full play of out. basis few
accelerating is Importantly, guidance continued range, top loan strong core deposit we're funding deposit likely of for provides good which be more also growth our growth our the seeing that end growth. at to
a on see to net trough continue dollar the income QX as basis. interest for We
quarters expect We revenues the from growth of level year. in sequential during the this spread remaining
In to produce we scenario, continue asset And trend an extended fixed see incrementally a scenario benefit. rate of cost a overall that would project also would higher funding NIM. hence, We this be higher beta. higher will deposit overall We higher. also higher see a would more repricing
growth, on is here. coupled continue into earnings revenue accelerating move throughout This growth. on expansion And year margin will the we solid will rates focus I continue we core outlook, noted, accelerating this this loan to that driving our Importantly, with of growth from combination as as forecast drive support revenue and XXXX.
to Turning Slide XX.
from and note sustained cash first senior of growth we benefited securities as and balances deposit level quarter. as well transactions higher offering our funding from ABS Our in the as increased,
balance percentage and approximately cash as the XX% of time. total remain sheet to as to assets a grows over XX% expect at We securities average
flows lower in to manage continue We time. consistent short of with our are HQLA, duration portfolio duration, the cash securities the reinvesting to unhedged over approach
over duration quarters. to have X the reduced the overall X.X years We from X.X portfolio the years past of hedge
Turning to Slide XX.
end lower third at the saw for we an the higher. AOCI AOCI XX% see can rate levels environment AOCI. updated moved at quarter. in end, the outlook was quarter on quarter Based incrementally You than
over outlook portion next the continues to of a forecast substantial of years. couple recapture AOCI Our
Slide to XX. Turning
in view effect illustrate can more in the the play they of balance the years. We sheet next see profile have more you over presentation forward so directly starting swaps, shows effective This the the of exposures hedging will updated including intent of the swap the as order to out X hedging hedging the future, program our directly program.
exposure reporting. in prior Slide provides total similar our swap the XX to notional appendix the
billion $XX.X swaps had XX, As billion effective we pay $XX.X of swaps. of fix received effective and of March fixed
margin down program rate primary capital protect designed objectives: in Our hedging scenarios. uprate potential revenue to with in and to X is protect environment; and
beginning weighted pay The which of effective a during second will capital REIT just this have have XXXX. begin the life years mature to cycle, average over and X quarter been in swaps, fix protecting in of
sensitivity mature, reduce. instruments asset will our these As
to we a at gradually Over our measured to program time, pace. protection intend rate add down
quarter first to hedges. the As the over of rate our the rate became down moved outlook yield inverted, we curve negatively added and incrementally course the less protection
We added starting $X.X billion the in fixed of received quarter. notional swaps forward first
weeks through also while $X asset swaps. These Additionally, the starting near-term fixed we instruments forward first XXXX negative of sensitivity net moderate-term will another interest in received of added the XXXX. billion starting X structure margin of the carry, business. minimizes The April, and forward overall protecting reduce
will remain make to may we over and manage positioning the interest hedging We of the rate time. and further dynamic changes sheet, balance
current reduce X.X throughout rate to benefit us current asset next Our is allowing approach while the designed years, gradually environment. from to the the maximize sensitivity
Slide on to XX. Moving
driven is in areas: Commercial quarter capital quarter. the by markets, capital revenues markets, revenues. the markets driven troughing increased since third payments revenue growth revenues related declined from fee sequentially management. and In banking X advisory lower substantive total wealth prior capital Our by
expected As such syndications. benefit this and capital over notably FX will year. the to rate of accelerate, markets Debt support interest as in areas commercial the derivatives, production continues also loan to is course growth
lower first we and benchmarks. penetration. Payments advisory year. and increased pipelines outperform in of Debit capital to advisory, Within XX% remainder seasonally as customer management and remain to revenue was robust, have continue X% and Treasury increased card growth markets the we deepened revenues industry revenue to cash to year-over-year, contribute quarter management continues year-over-year. have fees over backlog the in expect the
to across opportunities the grow in substantive the have years. coming board We revenues payments over
asset results, up year. delivering and is wealth strategy revenues management from the Our XX% prior with
relationships great management have are Advisory and year-over-year, area. the X% benefits under We seeing of year-over-year. and assets investments execution our increased increased XX% have in this
fix GAAP increased an Slide the overall the for the million the to noninterest prior of by CRT on declined million swaptions to On the and $XX excluding mark-to-market quarter, $XXX fees impacts first pay Turning the in income level, seasonally $XX by XX. million quarter-over-quarter. quarter
level. income the first quarter is this expect Our low and sequentially the quarter's noninterest from we revenue point fee to generally for grow year,
Moving by million, core million. $XXX on non-interest expense XX to Slide on $XX expenses. decreased underlying decreased GAAP by expenses and
Fund $XX FDIC drive million offshoring as quarter, business Deposit ongoing we expense $X the well program to related million to process assessment the Insurance as our of incremental related incurred During to efficiencies. special
core on tech Excluding lower incentive marginally in the well these we spend and of initiatives lower first quarter expected, compensation. items, as certain due as to largely were expenses than timing data
We forecast core X.X% the continue for to full growth year. expense
technology we core well timing in as $X.XXX new may strategies level expect quarter. our the standpoint, pace hiring second third at for into the a organic This quarter level the some data investments well expected variability given to fourth of growth initiatives. activities. revenue-driven higher relatively From expense of compensation be as billion. should as There expenses as be stable and This supports and be approximately
capital at our recaps XX Tier equity the Common X XX.X%. ended quarter position. Slide
ratio, points from XX has year of adjusted CETX X.X% was basis ago. Our grown AOCI, a inclusive and
management while into to capital capital intend growth. driving ratios operating our range to Our to our X% inclusive top remains maintaining We high-return of CETX fund focused on loan strategy of drive AOCI XX%. higher, adjusted priority
basis range assets XXXX remaining for XX coming Net previous half remain from charge-offs approximately points, credit Allowance in of X.XX%. prior of very level. They to to X XX in our quarter were XX through-the-cycle at basis was basis prior while stable X% expected credit point the the quarter. to basis XX, is points. quality in and the Slide we continues XX below On losses points than lower the well. lower as perform increased QX, Nonperforming
ratio our asset is increases to quarter-over-quarter. portfolio sequential slowing criticized approximately quarter-over-quarter, also expectations. increased X% overall of health and with The the The tracking strong
for X% be basis. totaling outlook our year teams and our unchanged. quarter, first full contribution This from expect on by to X% will Overall, as accelerated well are growth core our to turn expansions. new we guidance the from solid as On Let's drive XXXX. ranges the market between in meaningful driven a performance and loans,
at deposit X%. portion keeping we're more range our the same deposits, based We between end On X% at the a momentum the to traction up likely higher it of and on range we're with overall gathering. do that see and seeing
is be range interest up income on down X% of a year X% Net expected to and within full basis. a
than core dollar likely NIM to a expand We few growth the guidance. see our we project second quarter year. points QX and we continue income full into noted, strategies basis growth of lower revenue the for the throughout level XXXX. earlier I X% and track, from to As to a basis noninterest spread see Fee on remain on X%
unchanged, year our full I X.X% expectations, to is Expense as we XX Credit core for and the between is to charge-offs growth full mentioned, outlook expect quality, expense points. year. net tracking closely XX continue basis and expecting
to you. our conclude move Tim, With over that, we'll prepared remarks Q&A. to and
