Jim. Thanks,
quarter-end X. Slide to on Turning sheet our balance
their improved challenging lower cash navigate portfolio deposit borrowings. operating our achieving We higher efficient a through balances mix reinvested from environment, sheet. balance investment asset the in funding effectively our and more continue to We flows with while improved mix earning loans,
book contributed to XXX As capital tangible levels ratio a value by bolstered result, while facing improved our points, AOCI earnings headwinds. despite growth and strong loan-to-deposit our basis
prioritizing we loans We Slide during banking look at line C&I rate extend by next quarter $XXX $X.X while grew portfolio cash relationships. with expected our remained the values. are loans lending expected loan we clients the par the flows portfolio billion and On expectations. in total to declines our with and liquidity full non-relationship from million to flows X, steady present X%, growth trend approximately as Total sold in XX over of duration due to X%, manage be in further. Despite investment Cash portfolio fair not portfolio and months. The shifts, to is the decreased mainly at to by X.X years the yields.
seasonal in show into increased deposits CDs. million, and Slide $XXX billion The shift approximately the in average mix trend deposits to of $XXX reflects public total grew continued X% accounts or X. Moving away non-interest money We bearing quarter-over-quarter. million our which $X.X Core trend markets normal including inflows. deposits, from
conditions costs to points to in interest-bearing deposit XX%. deposit a of beta X.XX% resulting and basis pressure upward interest-bearing on Market rates deposit with put continue increasing XX cycle-to-date
were a costs deposit relatively equates to beta at deposit X.XX%, XX%. of which total cycle-to-date low Total
it's rate the we cycle. can confident are we to deposit the remainder terminal While challenging funding a of had track advantage cost record beta, the throughout estimate and rates of strong managing our maintain
to has defend promotions above our deposit balances us approach disciplined pricing in successfully exception targeted deposit resulted to Our and peer have allowed growth.
applicable share. Slide net $X of We earnings reported to Reported X income income statement. $XXX includes shares million pretax in million charges. our and provides or common other GAAP merger-related quarter-end $X.XX per
earnings Excluding these items, $X.XX. share our adjusted was per
return return adjusted profitability XX.X% X.XX%. of with common average average Our and of be tangible on to adjusted continues on strong assets an equity
net our interest to surpassed Slide and experienced metrics our income of we margin. as income linked details compression. expectations Both lower-than-anticipated and margin on in We increase quarter Moving interest net reported X. present a
hike was Our and X.XX rate bolstered better-than-expected the our Fed the strong performance deposit growth. May point in by by
of by against neutral and Fed prudently sudden adding rate reversal to we protection position the our rate while continue policy. Furthermore, make any achieving progress cycle, towards end the rate targeted risk
the non-interest quarter. in which was $XX adjusted for Slide million shows income, XX trends
prior valuations increase the a charged-off run from to fee Our life driving from would with SOFR. a company-owned a in The other stable, next from positive primary and quarter. transition benefit LIBOR did businesses asset but items derivative that not remained increase that revenues, income anticipate we our we rate $X in insurance were recovery million associated
to was XX.X%. the show XX, in expenses. adjusted million, Adjusted trend expenses we low $XXX adjusted non-interest a were Continuing efficiency and our Slide ratio
the well to and previous to of controlled with strong $X in run a million increase consistent were accruals a $XXX.X excluding equate million. our would expenses QX Our This year-to-date rate related performance. incentive quarter,
basis trends, X charge-offs we PCD Slide which stable, the reflecting Delinquencies our impact present XX, have loans. excluding a at of modest remained basis and On the portfolios. credit remained consumer net steady from commercial strong our decreased performance and points, X point both have
in approach loans. these to primarily The anticipated an migration loans aggressive we from the maintain rise PCD resolving non-performing as stems credits of
remain term, that short reserve on a impact from provision expect or we book. While X% the approximately charge-offs given elevated expected expense, this portfolio minimal this currently to carry we in million against are $XX
stands offset our unfunded for basis of second by or allowance, total Our in reserve by at points $XXX loan loans. The adjustments modest growth, quarter driven XXX largely including million economic was partially reserve commitments increase forecast.
XXX% loan and to scenario and performance economic provision negative significant we growth rely on that GDP SX deterioration expense continue portfolio Barring We beyond weighted of unemployment any these of limited a remain Moody's growth. X.X% X.X%. projects to peak assumptions, to expect
areas on our XX, key focus details you portfolio. see further Shifting loan Slide to will on of
XX% of Our diversified. which our well total granular constitutes book, approximately commercial loans and is loan
various diversified classes also is and CRE geographies. asset across well occupied non-owner Our
percentage, X% credit suburban non-owner medical or total within comprised than tenant significant to Midwestern Regarding majority of in our geographically are cities footprint. a attributed of loans negligible across Only districts the offices dispersed office central the portion with leases. less is occupied properties properties, business portfolio of located of a XX was that
X% of recent X%. a from highlights provide are and of rate a next we total carry mature of the XX than non-owner over maturities XX, CRE less Slide than rate months, occupied note examination within On that CRE less loans fixed months XX
XXX rates CRE at a Our over time includes basis underwriting the origination. current margin approach point to of the
improvement While been the income be surpassed original have underwriting underwriting observed these from rents. in believe maturing this guidelines, service with improved debt operating risk in sufficient have ratios portfolio credits we higher This refinance stress we uphold minimal. our coupon, to the and line has to net
well across commercial billion product Slide our and The production markets. $X.X all lines major was balanced XX QX details of production.
As banking new acquiring we importance RMs, our and with last quarter's for our the credit loan discussed structure requests. full of enhanced call, tightened have pricing on a relationship reinforced standards, our
of strong billion consistent As we has expect the in our half decreased is to year. low production, actions result and $X.X pipeline QX back loan the growth a of these mid-single-digit and with to
XX, Slide present we our base. On further deposit insights into
balance an average which strong core XX Our deposit have just enduring lower deposit the XX% $X,XXX. of is that to our customers, deposit It's years. balance average over relationships maintain highlight less carrying of have bank important with peers. with $XX,XXX XX% our of than accounts been we and for meaningfully on than
a have deposit XX years. total X% of top weighted than tenure only and clients XX greater represent average deposits of Our
at X.X% average. peer quarter, we the broker end of deposits below our of well Lastly, were deposits to the which be total expect
a Slide AOCI. in our On TCE observed maintain quarter. despite ratio facing provide of all We ratios XX, improvements regulatory in negative overview the the capital of position capital stability at we our the comprehensive of and impact increasing end
peer at most. coupled with rate tangible ratio Our peer on a our should return above common faster accreting average equity, us than capital in result dividend payout
growth. term do capital the in intend Additionally, do we focus not to anticipate as XXXX. the outstanding of on by and We our end quarter the to accrete to shares capital repurchase XX% AOCI we in any of did near not so
our performance the marked results second quarter of our first strong the summary, expectations. slightly of conclusion In exceeding half with XXXX, successful
to our grew the quarter-over-quarter, by mix, challenging we due our improved growth strong OCI led impact. strong environment, the balance Despite mix, sheet excluding earning rate a the core interest book of value deposit ratio grew to execution better strategy. a income net of better funding per deposit have share asset our and largely We XX%, tangible efficiency through
an peer-leading base demonstrated expand both while to have We maintaining our deposit customer ability costs.
managing in quarterly remains of evident portfolio ratio to XX.X%. expenses disciplined and approach credit efficiency is adjusted stable Our our our
outlook current with mid-single-digit mid thoughts year XXXX. on the XXXX remainder of loan Slide XX to our pipeline low the range. for believe in growth the support our should single-digit half high growth in range, full second to We includes
above falling We continue to reconfirming year-over-year on by a industry this income a beta with to deposits we towards and more and the XX% The interest-bearing guide growth increase range. are guidance interest of and in this deposit non-interest XX%. stronger rate hike target key include X% one XX% at to net higher through-the-cycle our or of assumptions end conviction bearing XX% to year-end deposit
million the half exception of expect stable $X businesses items of the the XXXX we fee be with We back to in earlier. non-run rate in noted
expense loan $XXX excluding higher for million year to of $XXX portfolio incentive end. Provision is we merger-related optimization growth, limited expenses. adjusted this we charges XXXX, million, guidance $X outlook share This million accrued reserves as by PCD prior million accruals. reflects has full non-PCD to quarter and $XX at related adequate continue believe been have for against of already changes our property and the to upward Our expense book. approximately be adjusted charge-offs
to Turning taxes.
$X in have for XXXX like and the basis approximately John corresponding full tax With Sandgren with available to XX% a on and We call Jim the credit including I'd full a basis. expect rate million FTE of for the amortization those of on Mark up XX% GAAP your comments, questions. a year do core effective Sander, tax Moran. team open remainder We
