Great. last share everybody. Thanks, $X.X to was with on billion good or -- how we Charlie Charlie, start our per employees our X, income Slide helped I'm and so for and year financial quarter common on communities and $X.XX the summarized going morning, results quarter X Slides X. customers, Net fourth share.
million fourth quarter Corporate There Fargo these Our adjustments our gains sales Wells a $XXX in strong; $XXX provisions; million Asset to future an due related as Management. railcars credit Trust included earn-out to due credit gain results changes Services be be leased continue in to and sales the and for cars. a of demand for net on these post-closing allowance business losses $XXX and certain decrease could to trends million of impairment
also We after non-controlling and $X.X gains, third businesses. equity returns billion private consecutive had these billion of $X.X capital or the from equity interest our businesses, strong affiliated quarter of primarily in venture
Our effective discrete was to XX%, in related business divestitures. fourth quarter approximately income the impacts rate tax including the
ratio the the fourth to primarily for in share for repurchases increase stock reflecting billion annual CETX the an in predominantly in quarter. loan in fourth by the repurchased our assets declined Our quarter, $X.X issuances, plans. matching from new XX.X% We of growth partially billion quarter, common of contribution $X XXX(k) risk-weighted and offset
will minimum ratio the our X.X% in reflecting reminder, regulatory a quarter a capital be for surcharge. As XXXX, CETX the of G-SIB lower first
Quality Slide Turning on Credit to X.
real during performance exiting net mortgage real delinquent by to that collateral $XX continued or the X% XXXX an is net Despite fully assets in levels still primarily nonaccruals, Our of and are has the million from commercial residential there strong estate portfolio COVID-related in forbearance of they million back the select third XX $XXX of points. basis ratio well. to until million third Consumer from declined forbearance pre-pandemic a have rebounded fourth lows and above that Commercial is residential of quarter, quarter. time. as million have declining charge basis valuations customers in credit estate of hotel After have certain to exiting and consecutive $XXX has our net risk points to the nonaccrual consumer the pandemic, quarter. million increased created mortgage was the $XXX off pandemic, Overall, increase activity continued investment for with Commercial to $XXX accommodation for X off quarters, property early credit in third remain all reported from strong driven perform programs. homes office perform charge-off challenges resulting commercial performance to the reserves increased from we're legacy period were for loan increasing segments. expectations. been Loans quarters and quarter cash certain increase charge-offs change levels. autos charge-offs loans. Consumer higher types, also values assets in practice the with their the retail Nonperforming quarter. the remained first across with and exited in four fourth although be pre-pandemic aligned the and modified upon related loans four by performance nonperforming a some
from economic releases. Our we at commercial our and growth Slide quarter If continued We commercial actions continued of with grew growth when loans the X% third or from declines Average under broad-based the growth the third reflecting corporate banking consumer year in of or late from reserve with performance, asset quarter in credit highlight quarter with strong in business allowance $XX.X targeted a the the to ago remain. corporate, segment in discussing businesses fourth commercial cap. have results. specific X% uncertainties strong partially billion consumer portfolios. increased loans by the $XX.X X% would across growth most grew recovery deposits. and consumer end geographies the the deposits billion expect highlight level our Average both banking, offset and and investment over I'll portfolios. recovery our treasury, manage ongoing to period-end growth the and loans we X, reflected economic and and the that continues, in quarter had On still additional
and down up quarter full down originally to including Income being X. X% million we million for for and on the was expectation ago, Fourth income $XX reported provided higher EPBOs. be quarter The from net or from XXXX balances, Slide securitization higher was we A X% $XXX purchased year. loans pools Turning net in from quarter our interest X% third a or income the to ago X% flat loan ended year increase annualized to XXXX from or year level, Net interest Interest fourth down grew the third interest quarter. the income from by driven
benefited favorable We with billion assets substantially we from fourth $XX.X trading income In and total a of by these mix. had funding of had higher from also $XX.X balances and we EPBOs, we end the loans, quarter, these at of expect decline associated year. million the down interest a of $XXX year-end, highlighted last this quarter, to
I waterfall We from of the review interest interest year-end. to The points net from in at also income Paycheck the of $X.X had higher margin are headwind these decline and due PPP interest or Protection fourth Program the was $XXX net XXXX income X on which income million the will EPBOs. points increased to running billion that quarter We've later interest basis outstanding X portfolios in quarter from from off loans, our reflected call. third basis loans
expense Now Slide decrease turning expense on costs, expectations we of Expenses reductions I Noninterest initiatives made our and provide in progress efficiency on before specific personnel on we updating the later in initiatives, you expense. declined from progress year a XXXX X. made consultant The will spend reflected ago. the on our in for XXXX. XX% to examples call including our occupancy efficiency
from Management charges one $XXX and quarter operating ago. approximately X. included restructuring fourth Trust losses our a lower Fargo prior in month or quarter had expenses Corporate to and million Fourth with of Asset sales Wells compared business Services November their year on We operating the also expenses
activity, fee card fees. offset enhancements revenue fees our starting Consumer growth our were Banking that be quarter the higher benefit customers the the Charlie will highlighted The turning of fees in expiration consumer we're an $XXX transfer largely transactions increase from year a that with as NSF estimated with deposit-related annually. deposit segments due as as changes well spreads. Slide COVID-related Also, strong year place also X% elimination higher Small included well fees, XX. to expect debit in and and reflected some XXXX various was the activity ago, waivers. to of compared be Business on as Banking protection by ago approximately that XXXX fee-related lending they or nonsufficient of a making other be Now partially and lower Consumer offset quarter primarily the levels from fees overdraft including to business to including by help of increased higher Fourth in reduced, avoid fund is impact due million we XXXX. may to fees waivers as overdraft fourth
gain offset we higher In Credit on billion. which decline rate active terms adapts put as balances in we volumes. back on a revenue loan by due pressure December, Auto latter the and new respond. to XX-hour features XXXX, higher with margins product, a short-term expect new to income, costs, grace by ago, up banking lower $X.X offers origination and Even revenue driven the sale a lower point-of-sale of recent volume, new including have will lending out we of overdrafts to a year, started rolled to revenue part to see loan observe volume. ago, the promotional be up, up year higher the in industry from margins lower declined Card. application on increased and Cash to X% average the year for from ago XX% partially balances driven card drop from rewards by including our X% the primarily volume mortgage originations period and how in will year a customers a Home in was before
on business Slide XX. some drivers to Turning key
X% declined from originations quarter. mortgage Our the third
the grown XXXX. fourth quarter of reflecting in consecutive nonconforming to the as the quarter refinance We well our We seven the originations and expect seasonal late to improvements as quarter the in activity in increased nonconforming the months, our capabilities typical our our and originations slowdown continue of in have lower decline for market. purchase first portfolio reintroduction due cash-out first to refinancing
continued inventories to vehicle to car constrain Auto. industry sales. Limited Turning new
originations had of in we from a we capabilities. the consecutive from volume our continue make XX% year Originations quarter used enhancements up record our from to the majority of ago, originations with also benefited coming third our However, with cars.
Importantly, we are vehicle maintaining so. the the our underwriting prices to year standards over in and about be continue increase or last cautious
Turning the from all relatively ago Credit be and a volume was continued and third stable increases point year a to were up ago from XX% third to purchase Card. with quarter. Transactions strong, year from card nearly of up Debit sale XX% the across quarter XX% categories. from
from to grew rates balances strong X% ago purchase year of remain volume payment products. launch new and a elevated, the While due
New from driven doubled we're of ago, our we've more by by accounts accounts card new card, the pleased quality and active cash a attracting. been credit year than the
Commercial higher Slide Banking a XX. on ago. by included deposit from year lower Market interest Turning to balances X% the impact Results offset and higher of increased fees, investment modestly Middle results revenue Banking rates. banking partially
in have balances. Asset-based year investments, year the renewable expense. lower increase gains declined lending securities higher and initiatives lower the third ago, with balances revenue Loan by to by lower XX% personnel months leasing from for from from as ago, revenue a quarter loan to driven started now from by grown primarily accelerating late driven four due Noninterest a energy and and offset X% efficiency expense and increased consecutive well growth lease in higher consulting partially expense net as equity December.
in credit seasonal and revolver prices adhering uptick As increases our in driven higher the as some well with Market wins Middle from lending a new modest as in leasing are appetite. the by increased by and larger clients, from utilization borrowing. Increases Banking levels. to was we strong other risk growth same asset-based Growth in levels and inventory client were driven portfolios,
asset year which as Management primarily market was This cap. was ago increase a Wealth expense, to Turning grew ago, balances from by compensation, activity a capital income from driven quarter, Corporate levels, taken across X% partially revenue-related month Investment Banking Banking from revenue. Banking increased the momentum increased year. higher It driven in from salaries business was June Loan market primarily sales trading started results healthy to Trust decline estate third revenue and year Client was new business. on ago, our by net the activity. from driven and the contributed due billion originations excluding fees a we returned Markets stronger of since in a $X.X year of a by third gains in in and commercial Management. X% sale loans financing of and net revenue ago equity in pipeline Slide by December. ago, Services highlights lower than more XX% a Results. year ago higher stable on XXXX, relatively from to and driven revenue valuations. real to quarter rates. down markets initiatives. on results products and higher offset derivatives. year in X% a estate a lower a noninterest as from period-end The we pre-pandemic a revenue equity ago. manage our XX on loan across Average reflecting quarter, loans debt all driven on billion from in from of XX. affiliated Banking lending. ago XX% also The by Investment billion and every our higher progress under Slide to Slide and and businesses year was Revenue deposits venture These loan revenue Corporate from Investment year Asset with gains accelerated higher year growth interest business securities-based Investment ago. both spread than X% higher had capital grew year basis, actions $XX.X and deposits Corporate XX. lower increased due expense. a grew from businesses a average Corporate ago, asset-based higher Average increased offset a loans the of and origination had Fargo fees. more from year strong valuations by were up lines by expenses X% a ago, efficiency were advisory $X.X benefited Average offset strong lines in and driven year assets primarily and and results interest in private all down the On increase Wells by Banking continued
associated remain expenses revenue We $XXX expect offsetting with neutral. in of with million approximately its these P&L XXXX, so
expenses businesses million down to in over related these manage remain $XXX corporate expect which approximately overhead of to expect XXXX, to also we We time.
our with XXXX, Net now Income Turning Interest for starting expectations to on XX. Slide
As year. income net net to predict for of impact let the income drivers interest have XXXX. the weeks loan highlight that of the year early demonstrated, last variables key environment, demand and our rate But for couple full me the it's challenging this the interest other in
XXXX, in We place on capital assuming left to remain right throughout the waterfall. are asset the moving
a the have discussed we year we and have previously, loans. runoff EPBO As this headwind of PPP from
current in for the that This approximately interest this billion balances to mid-single from balance X% would to quarter to than we fourth XXXX XXXX to digits average sheet the quarter $XX.X our of is XXXX, loans along fourth result changes, generated outlook net increase low mix XXXX. with of net income from the However, other offset is more headwind. expected grow in
and rates to approximately May. hikes The rate year Moving this repricing. XXX in forward beginning includes point basis curve recent
XXXX Assuming hard certainty. interest over X%, with has approximately versus forecast income these has interest very additional growth to out, grow curve in to the forward were said, play changed an X% net up X.X lot the a net it's months, XXXX. in to the any last income That implied to resulting potential so
by an showed net of $X.X interest months. demand disclosure from next factors, is interest of income third way XX-Q instantaneous interest depend sensitivity would basis loan and the estimated shape over of quarter we that the net rates curve, XXXX we yield asset in variety to of absolute amount It including approximately XX income view on XX the the redeployment. increase filing. earn our Ultimately, points in rates, provided the in will increase the level Another of our short-term the a billion impact cash
efficiency made identify on we on opportunities. new continue We to Expenses Now our and year initiatives turning Slide to progress XX. last
grown that realized approximately of billion across and portfolio are includes Our the has initiatives from to and billion, $X identified to we work potential Company. gross $XX continuing saves
We next across we'll continue identified invest expect businesses. to three over two years, our and our initiatives on to to execute the remaining
also reducing made non-engineering progress since control. excluding complete expenses with XXX year but customers We a a our our completed examples progress branches headcount accelerated businesses, to Company initiatives we've XX% risk of We control the Within XX% of in low our let approximately to how a We've few our add continuation increased organization, control management efficiency this decrease resources we made across Importantly, spending adoption last across resources XXXX, are and We've managers work, XX%, eliminated we as to me year. branch and address with optimized necessary our we similar work. last to customers highlight layers consolidations are a down framework. important branches. declined the approximately driven the been reduced and with branch needed in our bank using continue or XXXX. from our of the technology last businesses. we'll X% year, few the by by divested the excluding approximately roles And ago, from agile years
occupancy year, we savings year to these compared real down reducing of by X% X% estate expect This from office portfolio incremental estate. to and with an In X% number in branches, including addition our approximately a the was real reduced reduction realize we ago. expense to initiatives, continue also office
banking, in improvements in we're consumer making lending, Additionally, technology drive consumer commercial investments banking. should the operations,
should service efforts more faster expenses but decisions. with these fraud underwriting customer the enhanced also reduce self-service capabilities only detection, not improve and Importantly, experience
Now on turning Expense XX. Outlook XXXX Slide our to
of Following related This we in and business reported approximately $XX.X expenses in with higher our money XXXX had the waterfall guidance, action left restructuring noninterest penalty of except the line the in from to most charges OCC to enforcement with and We civil associated billion recent largely operating losses. XXXX. was expense for September. exits in right, $XXX million
We Asset also not that in of and in expenses Services Management sold will business, which Fargo from XXXX. XXXX approximately were had $X Wells billion our and Trust the Corporate continue
believe of we a is So the discussion the XXXX $XX.X for expenses starting billion. good point
origination and markets grow and expected increases Investment revenue-related and by expenses. Banking, partially good lending, the a volumes. in Higher offset Corporate declines We compensation increase Wealth will year a any are expect This includes this and offset by increase associated assuming $XXX in revenue equity expected more approximately Investment revenue-related than to Management is modest reflecting expenses in home million. lower thing, in
to of Through increases, wage and the wage increase efficiency beyond above minimum $XXX and expect including pay expenses, approximately inflationary and million merit by in initiatives, higher expect changes. highlighted Charlie of increases benefits-related also XXXX driven well level realize expense billion We primarily normal compensation other that corporate by and our we $X.X the incremental of and partially from offset investment to personnel expected risk investments approximately related increased approximately be reductions on is commercial XXXX. management. of higher banking billion technology gross banking, $X.X and expenses in This spending to as in as reduction personnel
to versus the million expected in including also associated XXXX, higher in XXXX pandemic. our in approximately had and be higher expect for lower were which due approximately million to reduction travel FDIC spending expenses, are entertainment XXXX approximately approximately XXXX, the billion assumptions are in assessments, of $XX.X Accordingly, other excluding the $XXX operating $XXX action. areas, expenses amount $XX.X full $XXX insurance $X.X the is significantly increased which net year We a billion. in million enforcement we OCC of the billion, Embedded with losses our
made and in Company. but we have more efficient the outstanding we've initiatives, significant as significantly in we get progress have our across substantial year we've issues, legacy executing opportunity and to the While still on previously disclosed, levels through efficiency exceed could working still significant XXXX. related issues, we expenses We made regulatory last had progress litigation
in expense mix. We business focused now process, This remains while with peers your reductions the ratio line in We'll based questions. a achieving our with our businesses. multiyear of net are efficiency take appropriately our an ultimate on on investing achieving goal and
