Thanks, Bill, good and everyone. morning,
were Investment and to than liabilities. were total sheet balances at the on quarter $X X% billion, balances billion due decrease deployment cash $XXX of higher-yielding Federal of our on $XX of or $X reflecting a presented or less decline billion in XX% $XXX linked securities. a basis. $X primarily corporate balance balances. XX%, and a billion is decline funds seasonal securities of into Slide Borrowed $X X%, Deposit increased Loans were cash average and averaged X% or billion, or Our an billion is of billion stable. the X Reserve increased
with March compared was AOCI negative end, At quarter XX. billion $XXX million $X.X improved and
well-capitalized, Our increased to compared XX. year estimated a as of the We per $XX.XX period to same share, June remain ratio XX.X% tangible increase a our value quarter ago. a linked book increase XX% and X% common CETX and increased
approximately expect final expanded with we the NPR, endgame, rule, Basel proposed while to rules, the of inclusion fully III CETX would phased-in Basel of estimated endgame AOCI our X.X%. ratio in aspects ratio we the capital risk-based our the likelihood the and AOCI impact be other would the certain of III recognize changes under X.X%. Regarding CETX And currently be of the
million well-positioned And Board capital $XXX We our shareholders roughly $X.XX recently flexibility. We $XXX just raising cash common per quarterly common a million share million dividends capital dividend $X.XX during to in the on dividend with to be Bill quarter, repurchases. included share. approved stock, as increase returned $XXX continue of the our of and to to which mentioned,
in Our remains results buffer X-quarter capital the balance underscore of our recent announced, strength our at And as October minimum CCAR beginning XXXX. previously the current stress of X.X% the sheet. for period regulatory
to prepandemic second loans Compared first balances of XX.X%. of roughly Slide flat were level detail. quarter were average Commercial well remains XXXX historical and the loan both our shows below average XX% more the X utilization stable. in essentially loans quarter, as the
continue grow increased quarter. to loan and we the customer Importantly, commitments relationships, during C&IB second
And averages, to loan historical and eventual remain leading typically direction rates million estate sales of the loans of near-term below X.XX% commercial the X second to are remains Although consumer inventory the levels less on total $XXX Average economy real both home increased points than balances. loan declined which of loans CapEx quarter. growth. and X%, indicators driven by in uncertain, basis approximately growth the residential equity yield or lower
investment security higher reflecting X securities into rates U.S. The X%, of X.XX%, deployment our higher-yielding securities, primarily $XXX increased or yield driven to basis Slide purchases. treasuries. the billion of XX $X excess on by and billion securities increased liquidity investment portfolio points Average swap new portfolios. details
duration As of years. XX, was securities the June X.X portfolio
second the to $XX starting billion. our quarter, During forward increased swaps
basis basis level rate fixed XXXX increased repricing points average received portion than points a weighted the the swap With XX our the rate fixed higher of years. including portfolio, and total locked through to maturities. The XXX we've swaps, asset is duration X.XX%, of the at addition of forward X.X our of portfolio approximately is these a in starters, that
that highlights value executed a securities quarter. X sale the reinvested yields the $X.X Slide $X.X of a and sold value proceeds the of basis for of transaction years. market is this securities XXX during securities than approximately $X.X second net loss to in earn-back interest the We billion, a by into benefit securities with second quarter, with of on billion. higher the and repositioning we million realized repositioning less in XXXX, period $XX sold. book X with We than $XXX The the million recognized and billion is income estimated expected roughly being the $XX our million points
X. Turning to Slide
and net other billion low-yielding of the mature, to XX June which repositioning. allow improved negative on interest growth swaps of accrete us through The Accumulated on continue securities AOCI compared the resulting XX. runoff was a to will tangible value. to considerable meaningful end securities continue to income. due billion to $X to benefit to March in back will improvement primarily swaps providing and XXXX, assets, further expect We comprehensive higher-yielding book to reinvest securities our $X.X negative into income as
Average seasonally $X X%, Slide or in deposits detail. more billion X balances. reflecting corporate covers our lower declined deposits
deposits the from point less than Regarding in X the second quarter, mix, percentage down consolidated of noninterest-bearing quarter. XX% total deposits first were
paid rate on on in increased elevated. us potential dollar drift rate believe paid its quarter deposits interest-bearing deposits had by peak deposits of second We began stabilized. X quarter approaching rates Additionally, is our point in fed gives largely And basis higher portion interest we level, XXXX, expect but the average since our during smallest only raising our the noninterest-bearing second that as the do to the deposits X.XX%. decline has noninterest-bearing the remain some rates XXXX which confidence of
the there to Turning And more provide Bill quarter, bit mentioned, as significant income several and want a statement. detail. were to in I the items
Taken significant $X.XX. totaling EPS have these minimal our a net benefit to per together, a of earnings share impact to items
convert previously X.X in disclosed, million our Visa gain. Visa the we've the allowing Visa Class monetize to to exchange, and holdings a remaining XX% participated shares. of million Through B-X recognized $XXX exchange we B-X our we program, Class As shares pretax us
that gain, we and are follows. had occurred items the quarter as the second In they largely that in offset significant addition,
portfolio loss. million mentioned a repositioned of we earlier, I $XXX sale portion the securities through of a as and, our First, securities, recognized low-yielding certain
PNC a related recorded negative with associated derivative $XXX and we million the to expense. litigation our million communities early contribution foundation fair resolution. Second, education. The primarily anticipated Foundation value adjustment we shares, $XXX childhood Visa Class recognized of B-X And lastly, supports extension Visa
XX, Slide trends. to income statement our highlight Turning we
income X% first upward has grew the quarter increased interest increased or second first basis Total compared this share. $XXX And quarter the marking XXXX. income $XX Net beginning of quarter. Notably, interest revenue or an to or billion an the in was per million quarters, NII Second X X.X%, $X.X expected $X.XX our of points. margin trajectory. the X% X increase was of billion in net by $X.X is net million time of
rate linked quarter, and foundation of $XXX effective or expense. and Notably, million in contribution Provision increased reflecting operating included Noninterest million generated quarter activity, and was positive significant $XXX million year-over-year increased billion portfolio included income and previously X% tax both the second in we leverage XX.X%. the of comparisons. Noninterest $XXX our the was items detailed. million or XX% $XX the million $XXX I expense $X.X
Turning XX, highlight we Slide to trends. revenue our
up Fee Second income. higher increased was noninterest by million and was income or assets. quarter. driven net linked driven increased income or or income $X.X $X.X million X% $XX interest X%, Net revenue on billion million interest interest-earning by and quarter $XXX yields $XX billion X%, higher of
detail, markets million underwriting the noninterest syndications, asset X%, sales advisory M&A activity. loan fees. benefit markets and as due offset lower brokerage elevated activity first and higher quarter was or income driven of quarter by advisory average by $XX partially fees offset increased to stable higher the at equity Looking and Capital annuity linked by was lower management
higher and revenue or declined $XX quarter's fees. million included X%, Other volumes items. management related million Card seasonally $XXX XX%, $XXX $XXX management residential due to mortgage lower cash activity. income increased million of transaction million $XX consumer significant and treasury to higher reflecting increased this and noninterest primarily or Mortgage million
Slide Turning XX. to
Foundation,while $XXX included the billion PNC or the assessment. million by Expenses noninterest was special second contribution expense of to FDIC only $XX of well-controlled, increasing $X.X the $XXX X%. first Our XXXX quarter quarter million the included million for
X% second expense, quarter reduction took declined declined workforce personnel noninterest last $XXX the the excluding actions of the result a with Notably, foundation as XXXX. million contribution, Importantly, year. or of compared we
to our the that million, $XXX increasing support million. As diligent our $XXX year, efforts. target improvement we mentioned, the million. $XX additional goal remain a identified by program in CIP continuous set At initiatives our continuous of we improvement beginning we've Bill of full Recently, raising year an
a technology As you funds investments. ongoing our know, program business this and portion significant of
credit loan on an Our are and Total driven Nonperforming million XX. March delinquencies or individual lending quarter, metrics with presented our within $X.X Slide by were secured of billion increased business. X% linked stable asset-based primarily $XXX loans charge-offs related Net net net the average XX. were $XXX to million our to points. portfolio, our loan in of was and charge-offs basis second included annualized charge-offs XX loans $XXX office million ratio quarter CRE
totaled billion credit XX, total Our with loans X.X% losses $X.X stable allowance on June March of or XX. for
to inflows second nonperforming Slide as to loans loans. credit paydowns migration an metrics. detail in criticized the the to And NPLs work the offset and outcome nonperforming on office status as expected portfolio. our more charge-offs this we quarter is were challenges CRE CRE inherent XX provides of stable resolve office to
loan CRE this nature of quarter-to-quarter charge-offs portfolio, the the portfolio the office vary additional expected, second million Ultimately, will increased and size given loans. As in totaled charge-offs of $XXX expect we the the on within net quarter. which
believe office office that, As XX.X% of XX, reserved. multi-tenant on of reserves on inside, we're of the our Accordingly, June portfolio. we XX.X% loans total and the adequately portfolio were
continue down. to a million declined And our linked exposure $XXX approximately quarter. manage result, X% as our we Importantly, balances or
a In of year. solid well-positioned the quarter XXXX, second the summary, PNC second for half posted and we're
X% GDP increase real slightly we're Regarding to growth second modestly of expecting in of continued our approximately XXXX overall the to the X% and unemployment in of by year, resulting economic half growth economy, above in year-end. the view
September We rates cut expect December. X in with another a and decrease the in fed in times XXXX XX to point basis
other X% range we compared at the third net be of noninterest quarter income fee loans to XXXX, the income of be up excluding the to up X% average second be stable, to to securities $XXX of X%, Looking XXXX quarter be and and activity. X%, interest expect to income million, $XXX million to Visa to in
to to X%. We expect be core up noninterest X% expense
between be to charge-offs million. $XXX net and quarter $XXX third expect million We
ease for second operating and forecasts, FDIC as reported guidance our quarter the Visa expectations our exclude as as Considering quarter guidance, results, significant other first year comparability Regarding assessment full prior first our full of follows. quarter year items. gain the to and economic guidance, well we third special is XXXX current half
growth, full should accretive to in which to previous approximately it'll our X%, the average less compared end the we year loan the year We For equates of Despite expect to and NII XXXX, full XXXX expected greater we of the average. that full to than be X%. loan year at year down occur, half volumes, be loan down growth our second better be loans expect for XXXX. lower potential phenomenal expectations or recognize full
dynamics impact to We offset the the loan volume. lower-than-expected expect and our better-than-expected of securities repositioning deposit
due X% activity guidance to a extent, lesser up slightly be We loan-related than capital previous to to and, softness X%, expect income our markets mortgage fees. continued lower in noninterest to
is result, to and We our target, be a be expect X% stable, noninterest X% the X% CIP expect core part our versus range down tax previous we to to effective revenue guidance. expected expense our to approximately due previous and rate in guidance to increased be total of XX.X%. inside down our As now of approximately
your Bill to that, I and take With are ready questions.
