good morning, and Thanks, Bill, everyone.
from than franchise third following PNC USA the and the notable platform BBVA scale less mentioned, underscores quarter, XX acquisition of we we with franchise. As announcement PNC's this deal. Bill opportunity USA increased in the the months to converted the BBVA the the during just have
well acquisition, just inherent our sheet growth proven We successfully and as to balance way X record we're of on with growing reducing for to accomplishing USA. the quarter third a average impact of the quarter BBVA the full of to Due this shareholder closing and mentioned, reflected opportunities, strategic our acquisition. the the June attractive enhanced identifying And have deliver track value. franchises acquiring risks, Bill
As loans and billion, grew billion. grew deposits billion, securities $XX increased $XX $XX
$XXX relatively rate the loans environment. we X%, few detail forgiveness, drivers much for which PPP presented month next For a on slowed linked-quarter, X% the the or declined BBVA results, of comparative is loans the of quarter balance impact second as just Slide USA X billion purchase quarter, included million more of the basis. sheet Total one or you'll activity grew. unattractive I'll spot Investment in And cover slides. approximately our on $X.X during securities purposes recall declined throughout spot excluding over the
on share Reserve Our the XXth Federal $X billion. liability cash at $XX ratio and value announcement. to USA were the the ended tangible $XX.XX On estimated portfolios. of are balances at the the a balances reflecting We billion grow per XX.X%. with and ended anticipated an pro repositioning declined CETX book of substantially $XXX at we certain billion deal time continued a third Both deposit BBVA above the of of the and quarter September forma side, quarter levels
million dividends During of to $XXX with and common shareholders repurchases the we capital million. quarter, share returned $XXX of
more going level ratios, $X.X continue change PPP a total and XXXX. reflecting to $XX loans. its significant in and linked linked Legacy increased the to billion commercial Growth forward. with we utilization. in linked detail. uptake PNC spot by portfolio, in quarter billion quarter did Consumer growth legacy The our lending. declined aided asset-based driven be while in driven our Average flexibility a higher capital the loans Given balances Slide real PNC's acquisition. billion, our the December of capital look And $X.X impact lows, loans quarter with $XXX consumer grew estate by or Legacy been utilization at X Corporate in spot Banking both within shows balances, has loans closer X%, since strong in near historic quarter was well-positioned by loans stroke $X.X PNC by still loans, grew balances. billion. Taking The reach full residential Commercial excluding slight growth highest billion, loans
loans portfolio, relating due billion $X.X intentional the overlapping run-off declined primarily the exposures Within BBVA to the of non-strategic loans. USA to
intend billion the that acquisition over of our line Looking which in is have additional we with off assumptions. roll BBVA years, let approximately ahead, few $X to we next USA loans
loans our balance on PPP of activity. to as billion sheet. due remained forgiveness And $X.X XXth, loans Finally, declined September of PPP billion $X.X
Moving to driven increased quarter, Slide of average $XXX the by $XX billion deposits the to X, billion second acquisition. compared
certain accelerated of $X.X billion, On can deposits legacy linked-quarter. as see the XX, on this billion, $XXX reflecting grow, period-end decline $X which interest-bearing we or period securities acquired during X deposits was a you deposits now X% or businesses. several customers. BBVA Inside USA billion continued activity. deposits in deploying PNC rationalized non-core liquidity increased basis decline low of levels. our details point and Overall the our our purchasing is the have we of with paid rate historically Reserve in most beginning points change of yield X Federal Slide And we and rate right, approximately to deposit deposits paid Back you disciplined of linked-quarter. September were total rate steepened, the X know, at the on position been third liquidity excess our and as strong the our balances. portfolios $X.X to as basis deposit-related anticipated quarter, exited curve the the of rates as commercial on year billion declined
quarter, second deliberately slowed the purchases However, towards end our yields we declined. the of as
resumed now increased in fourth assets, XX With in of third of XX% will levels approximately purchasing, rates by balances be range to the approximately including to in securities, represent year-end. be still the at of XX% the expect which $X.X reflected of the Average of we quarter, security the interest-earning our increase quarter. and forward-settling end we've billion
our $XXX EPS X, pretax quarter of As integration you costs $X.XX, third on million. The the was Statement see of Income full acquisition. impact reported can the quarter which Slide includes included
adjusted, EPS costs integration Excluding was $X.XX.
was million up was and quarter, additional PNC X.X%, rate and driven as of changes improved well $XX business fee which million $XXX tax increased as was integration BBVA credit fee second pre-provision reflecting revenue expenses, million $X.X XX% of Legacy XX.X%. quality by including $XXX composition billion virtually, XX% or driven million, increased acquisition and million quarter, $XXX USA activity. earnings, organic effective strong X%. Expenses higher or of linked $XX Pre-tax, costs, primarily was with the X the by portfolio integration were operating all months provision our in expenses The excluding growth. re-capture Third-quarter compared or of expenses.
be expect year, to For the approximately tax our full XX%. rate effective we
As Net a $X.X third the quarter. Income was result, total in billion
performance let's Now more key drivers of detail. the in this discuss
Inside the $X.X our $X.X of earning income asset interest XX%, BBVA $XXX on investment million, portfolio. increased billion by X to that, $XXX slide of of interest reflecting premium lower Turning loans these or income of diversified driven XX% full the million X, from total, USA. up driven USA margin yields. In declined Net acquired points, A by acquired net or million was charts business $X on by security the income million interest BBVA amortization balances quarter. mix. quarter while increased billion illustrate X.XX% revenue the basis primarily linked of was down benefit securities $XXX elevated
Importantly portfolio quarter, securities the decline premium we to on and in amortization expect the meaningfully to fourth increase. the yield
by a quarter quarter driven fee M&A a growth months residential was USA the increase extension as fees linked results. million, increased $XXX adjustment in quarter linked fees income private resolution. quarter, as operating of income of million grew of expected higher million litigation mortgage by derivative more $XX relates related impact BBVA well of or equity additional the revenue. to by billion, adjustment. Other of driven $XXX two third of by recording PNC higher $XXX the fee advisory XX% $XXX revenue non-interest service linked income timing of million XX% offset a of contributed The $XXX Visa corporate million $XXX negative million to as than activity, or a Legacy linked-quarter. $X.X an decreased million This
M&A $XXX expenses $XXX integration or $XXX Turning BBVA X.X% in driven in million was linked-quarter. to million of higher to due and The USA slide incentive higher or X, of primarily impact million. commensurate million advisory $XX expenses increase up a strong of by fee quarter compensation PNC the higher by fees. including our were businesses, quarter with XX% a expenses increased our performance Legacy third expenses record
achieve and management. our Our expenses integration efficiency expense the now full-year costs XX%. we've in but to our track stated with our a acquisition, to ratio expense standalone million disciplined have XXXX, we is we program higher base on goal was Obviously, by nevertheless, target. our for improvement $XXX remain we're as through adjusted reduce around Continuous And PNC previously,
that approximately base, by Additionally, We the of of incur U.S.A.'s expense expense we're net savings expect full the actions $XXX and confident we'll $XXX of all million BBVA forecasts integration have costs. end million and acquisition. And of expect costs of the XXXX teammates virtually done we goals. hard us realize off we $XXX in to appreciate announcement completed on the half the work the incurred to approximately our related these million of savings have track be acquisition, still these keep Since all XXXX. drive mentioned, of integration to the as to to our Bill achieve the of
of represent $X.X presented or XX of performance. $XXX September X% X% to compared credit strong than Slide $X.X loans. continue Our on or XXth, reflect a on $XXX million credit less million Non-performing and total X%. XXth are decreased increased billion loans of and June delinquencies to metrics Total billion
approximately delinquencies operational acquired in loans. quarter-end, all resolved. BBVA includes of of the to million this early-stage process in are related have been operational USA of these However, increase delays being to Subsequent $XX or primarily delinquencies
million Excluding quarter. these, and total of $XX a delinquencies would $XX leases $XXX decline linked million, loans for or million were Net X%. have charge-offs increased
acquisition. quarter included result of charge-offs the related the USA to $XXX BBVA The required treatment and purchase second mostly loans, accounting of million for
annualized third Our net quarter loans XX were points. charge-offs, in the basis
in primarily X% this In fourth view our and annualized in of quality, third significant $XXX growth portfolio driven to third third USA problems, overall this chain the billion summary, credit quarter, a as expect In reserves value declined supply notably, million, we to the due strong add to of representing as quarter, were our earlier variant loans. we At accelerate quarter improvement potential regard GDP realize to PNC continue Delta in $X the quarter-end, With week step our after Company. BBVA the the credit allowance in During of the as reported composition. to franchise. the converted somewhat shareholders above losses X.XX% for the well XXXX completed, to our we combined changes during expect economy, of part and slower to quarter. by
of rate We remain also funds expect zero Fed the for year. near the to the remainder
loan the XXXX to recent Looking quarter we excluding balances, to fourth at be of PPP, results, the compared modestly. average third-quarter up expect
expect down mostly up activity. On to elevated income between X% the percentage we and third X%, to We be a NII basis, M&A be modestly. reflecting expect fee quarter
be between $XXX $XXX X% And to to to $XXX approximate during activity. other expect net On million the to and X% fourth and we and fourth-quarter Bill with We million fees non-interest a income the excluding which your and to million. are And expense, integration between expect take that, be questions. be $XXX non-interest expect $XXX ready we I we and percent, quarter. securities total expense between charge-offs be excluding down net
