and Thanks, Bill, good morning, everyone.
Slide X% $X is Loans on were or the an sheet $X.X at during averaged were for billion. of relatively the quarter. billion increased quarter balances Reserve quarter. billion and at securities presented increase Investment balance $XXX $XXX on $XX Our average linked and billion, X the basis. stable an first billion Cash Federal is
Average senior January $XXX $X of quarter. quarter on both spot of basis in Deposits billion, reflected a XXXX grew note year. borrowed issuances and this increased as well billion as average which fourth funds linked activity
value capitalized X% At our common an quarter of book we March end, tangible share, an with was remain and quarter ratio of well X.X% of as CETX $XX.XX XX, XXXX. estimated per linked increase
million which $XXX of During to billion dividends we share million of approximately X.X capital $X quarter, shareholders included $XXX the common shares. of or and repurchases returned million
Due repurchase repurchase of increased and share conditions appropriate. our may and expect we'll the uncertainty, economic course, we reduce continue monitor to adjust as quarter. And activity this activity market to in second to share
detail. shows X and more our in loans Slide deposits
the averaged billion. XXXX. first balances averaged billion $XXX impact largely of Deposits quarter the $XXX loan quarter, billion, the first billion increase increasing X%, of or full fourth the During reflecting an quarter, in growth $X.X in $X of quarter
minutes. We continue more in to from in cover see I detail a that interest-bearing, will mix noninterest-bearing few to shift and a
beta was during increased first the the XX%. Our in from paid cumulative as deposit XX, of on X.XX% XXXX. quarter of interest-bearing to deposits March our X.X% quarter rate has fourth And
on statement income the to Slide X. Turning
quarter by the of $XXX decreased X $X.X interest-earning compared interest X% billion primarily million the decreased quarter million $XX funding per on yields can and reported revenues costs, XXXX. to higher see, quarter fourth or you assets. income partially in offset As billion first higher by net income share. Total was driven $X.XX XXXX $X.X or to fewer of days Net
Our margin in I X capital asset just general offset brokerage funding was a basis management declined consumer activity and declined mentioned. seasonally markets the growth costs, points Noninterest $XX increased well more reflecting of X% X.XX%, or than as as lower net slowdown million transaction by volumes. interest income in as also
the quarter updated First million changes deposit in to increase assumptions million expenses $XXX portfolio even as was economic $XXX million. and which And well or and the effective was XX.X%. X% for in equated tax quarter, rate first linked accounting quarter to our $XX FDIC's rate Provision declined the impact included of after composition quality. as the assessment
to our expense revenue X. Turning and We trends. Slide highlight
program revenue of to As compared And reduce business quarter funds the ago. efforts, leverage diversified ongoing our previously confident stated, have year a to we're investments. same we a of we will of operating year positive and costs generated portion in a through continuous XXXX this we as we linked know, goal significant result $XXX and target. and you period a our by our XX% program, improvement management And our as million technology streams achieve expense and X% full
XX% a presented delinquency of Slide XX $X quarter. lowest our basis $X.X less to declined Notably, continue delinquencies loans X% Our Total represent decade. points linked rate are Nonperforming and metrics over than billion in X. on total of of is billion credit at the $XXX million level remained loans. stable or
Net million decrease charge-offs a quarter. of $XX linked $XXX million, were
was our Our on total March billion of basis XXXX. annualized losses average points $X.X X.X% essentially the credit charge-offs net XX, totaled to allowance first year-end stable for loans or and in quarter loans with XX ratio
we securities of guidance, key impact are top Before items as that commercial and portfolio. office within sheet and environment related a our mentioned, to I balance the to the of changes. dive of current mind exposure And in deeper want deposits, and regulatory take capital some into provide liquidity on an potential finally, update forward swaps, our the Bill
we areas well we're In believe view, these across key positioned focus. our all of
XX. to Slide Turning
and are of portfolio. and the At consumer down commercial the is of our consumer very of XX% insured. Inside XX% our consumer [indiscernible] $XX,XXX $XXX nearly cap portfolio throughout granular between approximately end coast-to-coast commercial. broken balance were FDIC deposits The XX% at categories account give first of composition with our billion view is Our a $XXX franchise. to average the billion granularity approximately quarter, million of and you deposit across $XX the an base deposits, of
balances deposits deposit-only all include $XXX importantly, stability to of accounts. These of Meadowlands XX% approximately deposits Our insured, held are of for which to escrow and balances loan billion relationship total relationship tend as at but pay commercial and are broader held services treasury operating than the management accounts, accounts. in more fees, deposits compensating provide XX%
million deposit representing diverse set accounts, of approximately commercial have we a and industries Importantly, geographies. X.X
Turning XX. Slide of deposits. to interest-bearing mix noninterest-bearing We highlight and our
to consumer pace noninterest-bearing deposits stable, side rates the period Our have ago. shift into deposits, The has somewhat at commercial albeit than risen as XX% at see same played we remaining been where mix had compared a year expected. and out, interest-bearing continued we that from expected is noninterest-bearing has faster a to a
noninterest-bearing total year deposits XX, as portion of commercial March was a of down XX% The ago. from XX%
the mentioned On at support mix quarter level was first which compensating noninterest-bearing Importantly, our provides consolidated the balances commercial time. XX% a noninterest-bearing include and Meadowlands deposits of previously, basis, through to of to this deposits, granular end from the PNC treasury the year I in base. percentage and down the part historically industry to of higher XX% management with strength due operated ago. deposits has banking of business a a our XXXX, relative deposit of noninterest-bearing
As we a approach XXXX. to continue our noninterest-bearing of year-end and portion result, by industry to the expect range averages, deposits exceed mid-XX%
to faster increase seen our a to have the shift, short-term raise as year this in has rates. we continued mix addition Reserve interest In cost deposit our Federal
XX expectations pressure by end our incremental has increased events XXXX. focus are previously rates expected. current largely paid current driven added we expectations Slide recent and and that through The betas have beta recent of in intensity ultimately, deposit than increase shows deposit our our sooner the pricing trends and for on the
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details and XX Slide investment securities swap our portfolios.
the securities yield quarter. continue stable exceeded securities we X.XX%, higher first replace X.XX%. basis rates. Yields quarter to points averaged at quarter during linked as billion to and our XX runoff The $XXX Our increased reinvestment in the on balance purchases on portfolio were relatively new
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end quarter apart. or $XX securities of billion swaps $X.X stable Our billion other interest to the $X.X as first received largely normal quarter, commercial the of and lower remained fixed by the X.XX-year in accretion loan duration. during book our accumulated comprehensive rates the at notional loss value improved the driven and pointed pulled swaps by to the billion, impact XX% and At
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liquidity XX Slide highlights our position. strong
and exceeded the regulatory ratios coverage liquidity in requirements strong throughout Our continued quarter quarter. to the improve first
net the at $XX Federal daily unused billion, well maintained a borrowing sources. flexibility statutory ratio assessment and required is Reserve substantial a as monthly includes through cash totaled ratio Our capacity coverage funding other balance calculation. we and as funding stable liquidity
testing scenarios. performed systemic stress we internal that as and monthly of addition, In well stress idiosyncratic covers range horizons liquidity as a time
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market positioned in the of is duration rate the in equity increased further, X substantially Total now current rising and environment. our well of equity essentially value environment, and
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CRE environment office quality credit to across book, interest our receiving in a and shift higher attention work this is rates. segment to a lot While majority the strong is of of remote the due
thought with exposure we be this portfolio. position highlight would our worthwhile So it our to and
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Turning XX. to Slide
now level classification. underwriting portfolio You majority a which we In to as built across on that totaled those tenant to focused covers to our these property quarters, and X.X%, approach, to approximate portfolio, over adequately can believe originated geography, significant which loans, work defined attractive loan Class office XX% markets with losses. see the composition expected Reserves of this is with have adhere an a XX% type diversified experienced [indiscernible]. against and we well regard of value The properties we of standards, was and are A. conservative well several
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reserves. is reflect this Obviously, our extension, assumptions and by stand-alone real-time basis as office and area to it monitor continue relates Multi-tenant a near, the market to X.X%. are portion of the comprises concern our losses they expected on largest reserves In review conditions. to ensure we'll primary our
this balance time. For well each the strength Slide during believe areas key our we summarizes we And just I of volatile sheet focus, are X of positioned. discussed,
solid. up, capital strong, and our are quality are positions deposits is and overall Our our credit liquidity
in In In are GDP. resulting of regard our second we to quarter summary, the reported X% XXXX, real a PNC strong first in starting half overall a in the a of 'XX. economy, view recession expecting decline
Fed assumption path funds the in basis a includes May. increase XX rate in Our rate point
expect until Following Fed when to XXXX, the a expect early actions XX rate point that, we basis pause we cut.
year is of We X% X% growth X% for is full X%. to of Looking growth XXXX X%. compared expectation loan results our of to expect ahead, to interest to equates XXXX be X% growth income for X%. up which loan X%, our outlook spot Inside as to to follows: to to net that, revenue Total up average be
being on by At assumes and point, recent our full which pricing, this continuation year events. remains guidance recent the deposit visibility NII intensity the is challenging, of driven
X%, to expenses be be We expect to noninterest income to expect we be our stable, approximately rate effective to up XX%. tax X% and
Based leverage this positive expect we guidance, on we generate will operating in XXXX.
securities compared income million average stable, Looking to income expect be and fee excluding at to the the quarter to down we noninterest X%. between net second X%, activity. first XXXX, $XXX quarter be to to to Other net of to X% loans income Visa $XXX XXXX interest down stable million and of be be
Taking all the component X%. total expect pieces, to decline we revenue approximately
given we million million. expect strong Bill quality Further, our noninterest I that, our ready up is are with between take and And total questions. trending to $XXX X%, and be net charge-offs your to expect $XXX We expectations. expense to metrics, to our than credit second better and X% be quarter credit
