morning, and good Bill, everyone. thanks, Well,
an on Our and X, Slide average on balance presented is is sheet basis.
increase an the of billion. the grew During billion, Reserve average balances Federal quarter, balances $X or Deposit our or declined $XX averaged X%. X%. or $X $XXX And cash Investment approximately averaged at X%. securities billion a of balances decline billion $XX billion loan $XXX billion,
book of as Our our June share rates. value common X% June decline AOCI XX, entirely as of linked X.X%. $XX.XX function quarter, a be as a was estimated was And of XX, per driven ratio CETX higher XXXX, tangible to
be Given we capital strong significant ratios, capital flexibility. with our to continue well positioned
of through share During million the billion $X.X and $XXX shareholders quarter, dividends X.X capital to shares. common million $XXX repurchases we of returned for of million
results Our and sheet support recent shareholders. capital our our to strength balance underscore our CCAR to of commitment the returning
dollars increase were XX. common XXXX, loans June the our allows quarter of Board our repurchase buffer in know, up of allows shares, October you approximately million X.X%, a of excess Earlier available Slide shows in of This fourth which repurchase detail. of stress the and as our X the to as XX% share should ratios are conditions those minimums. well year, our the in period more authorized repurchase now which Directors warrant. comfortably as for framework, flexibility levels still beginning for As new is this XXX average recent to for for capital regulatory applicable in levels continuation our
compared this to Included excluding approximately commercial a the rates. During an as increase loans, billion expanded and Loan as growth PPP and less end was than the of the billion. balances expected are as segment, half loans. characterized balances more loans case, and points, the forgiveness, compared year. utilization the low quarter. acquisition-related loan repositioning high-quality loan billion, commitments reflecting quarter rate mature related growth higher levels, increased second C&IB $X.X $XXX higher yields quarter, linked loans. $X $X rates. Notably, our second XXX Consumer and were consumer of quarter, growth first to short-term XXXX basis compared that composition the equity the driven in X loan overall billion, Commercial first we increased lower XX to portfolio was offset home production grew of $X first basis portfolios. and Slide solid the franchise, loans both interest you utilization our highlights particularly compared delivered growth by $XX loan during higher X% our when the by XXXX, of than increased certain billion new as billion as the driven balance PNC's PPP, of $XX in average utilization. averaged X% to in were mortgage as to in across or changes declined PPP higher know, our points billion, well quarter, deposit partially balances the by And were quarter. to well by at auto
the Within X/X quarter, within and X/X commercial the stable base, are noninterest-bearing. and average. deposit XX% consumer, remains our interest-bearing second represent and below operating interest-bearing, is XX%, ratio XX% was core strong a end have our well historic We noninterest-bearing, are loan-to-deposit At which balances which pre-pandemic deposits. of compensating
Deposits securities lagged by to approach And we pace you XX%. linked in expect million quarter reinvestment declined in decline grew deposits more deposits in The accelerate of quarter. throughout XX% in reinvestment in forecast. or consumer in lower seasonally unrealized to losses or year-end, compared quarter the the On rising of to driven environment. yield interest-bearing portfolio. basis, our basis, Commercial our Average X% betas points $XXX our now X%, $XXX net interest $X detail. X%. increased largely averaged securities our by XX third amortization. can a have portfolio the see to details to we stable second On net change the purchases rate due early a average $X basis on spot quarter deposits as a given the of noninterest-bearing quarter, during billion light a or basis seasonality. expect and the rate deposits our higher and yielding as yields $X previous linked during the in representing increased securities investments the cycle, to our Deposit primarily increased On expectation quarter our or rapidly right, the billion of of nearly billion offset higher movement betas on rising X portfolio. billion X% the by XX an relatively result, as X.XX%, rate year rate linked quarter, to were deposit our paid betas remainder but points. as basis increased by Overall, premium X securities deposits our slower remained on second points well Slide
lives the totaled $X.X to maturity, over securities the This to quarter. of interest includes Bill of transferred now help $X.X held the securities. rates. second the to which back maturity losses mentioned, which rising total, to pretax Net have AOCI and As we in XX% our held unrealized XX, of on as remaining at from related billion mitigate impacts future billion those June will securities accrete securities will end of portfolio
on to X. Turning statement the Slide income
integration income second you quarter $X.X of $X.XX share, was billion, included net As or see, pretax $XX per costs can million. reported XXXX which
adjusted our costs, was was $XX linked quarter. tax integration up first compared was million $XXX million Revenue X%, or Excluding EPS with operating effective resulting was leverage million or increased X% Expenses XX.X%. the Provision quarter. X% positive in $XX $X.XX. and rate
as revenue Now let's loan partially interest-earning assets revenue $XXX second more higher offset benefit interest X.X%. discuss was yields X%. costs. million details or quarter. on or X% interest to And was for by up trends. in quarter $X.X Net performance XX increased result, a the income margin the basis key detail. net $X.X of The billion $XXX funding million higher of Total increased increased drivers Slide linked of billion and balances points X of our this
linked $X.X billion, XX% Second income increase million quarter was of quarter. or $XXX fee an
each detail of Looking the at category.
advisory by commercial revenue $XX with banking expected Lending increased XX%, revenue. essentially loan deposit $XXX equity seasonally revenue $XX management services revenue. lower product X%, million included grew Card integration-related market-related markets. mortgage and management from as and mortgage and or mortgage lower Asset driven treasury M&A waivers. seats. driven X%, commercial fee by decreased and fees higher reflecting and and offset million quarter, or activities Capital higher reflecting income was million increased fees X%, higher stable spending activity or higher increased lower and activity management brokerage or consumer sales average cash Residential linked noninterest million $XX residential rebounded
Finally, other Visa adjustment $XX to related fair a value derivative funding included noninterest and million and escrow declined negative income valuation changes. $XX litigation million
XX. to Turning Slide
as deliberate remain quarter, And year management. lower increases continuous previously and million driven expenses expense $XX achieve quarter These activity, we'll reduce in our offset costs lower through by full by target. increased confident our improvement million higher our XXXX around a up we're stated, We by linked program, X% we and merit second and have expense we've to other Our by partially increases or $XXX expense. were goal marketing business occupancy spend. were seasonally
investments. technology funds you know, program of our a ongoing and this portion As significant business
on decline broad administrative delinquencies consumer represent presented X% net and are metrics XX. $XXX of acquisition-related Slide were $X linked a credit charge-offs, decreased primarily saw loans. total lower than million to the within linked the March included operational Total $XXX delays. a billion million less million, Overall, auto and were for commercial categories. of all continue consumer which of across compared $XX Nonperforming portfolio. Our quarter, $XX loans quarter, driven loans leases and billion loan XX, XX% June $X.X million decrease XX, charge-offs on resolution we lower reflecting improvements of delinquencies, Net to by or and
in losses our charge-offs PNC net billion credit solid second and And remained during second quarter, X.X% total annual we historically for coast-to-coast low of we're as a to XXXX continues franchise. to slow regard growth second remainder of Our real growth. loans to basis the positioned points. allowance at In total GDP to the we annualized essentially $X.X our continue or the of well average and stable, summary, over of loans. XXXX, overall the now of resulting pace realize our economy, XX our reserves reported the the potential view In be to expect of economic for half quarter, average X%
X.XX% raise XXX to to X.X% through Fed basis remainder rates by additional year the year-end. range of an cumulative this of points a also the We to by expect
the at quarter X% to we XXXX, of expect second quarter Looking loan XXXX, the to be X%. average third to balances of up compared
We interest expect up income XX%. net to be to XX%
be to which X%, income total in increasing noninterest to X% to expect results X% revenue X%. We down
growth the between to expect operating be And $XXX million. forecast the to We of basis. expectations, quarter compared average third on by noninterest for charge-offs XXXX, Considering first be year XXXX year third full growth expense spot a X%. and our XXXX, the X% of quarter loan and to to current for an stable we up total full approximately net we $XXX half million reported results expect economic XX% loan expect
X% to We expect be to growth XX%. revenue total
full provided year outlook in for from we the guidance revenue April. is unchanged the Our
at expectations income from now we our to offset somewhat interest by net lower fees. relative higher However, expect time, that more rates,
excluding expenses, and up expect take I to And expect X% that, Bill your approximately We be be our integration effective now we tax X%. are questions. with expense XX%. to ready to rate to And
