Thanks, everyone. good Bruce, morning, and
our for quarter. overview headlines the Let's start with brief a of
points Bruce backdrop. This operating the is the of translates driven head excellent point increased billion. said, quarter PPP, an XX against ending up was an of quarter. franchise The our excellent the into for strength. ratio $X.X outstanding This decline loan a with quarter half basis this We good from was growth, rates losses Citizens coverage well last As to in year to did sheet allowance allows balance with difficult offset momentum headwinds X.XX%, the ACL generated us from and fee This in second basis. stronger strong cutting on an and record X.XX% income balances, of the $X.XX fees, ex but costs the We This in basis balance and given credit up in lower which for we display, underlying showed other margin. as on categories. strength, record which was stable sheet ratio X.X%, fee to Net revenues quarter, driven interest by half. by given offset we of in a CETX deposit was several cash resilience mortgage of XX income EPS quarter. a higher
an a Also, quarter improved the share excluding is with per tangible also in remain LCR. ended XX%, compared we $XX loans, up Our our year liquidity end, the we value ago. of book PPP with X% ratio LDR has and over with compliance as quarter at
results Pages resilience build, the business X. me on diversified highlight highlights strong model. the let pandemic our of our in and covered of Even Now underlying results to midst of reserve COVID-XX move the another the X our and
helped was to $X.XX we $X.XX linked underlying $X.XX Our IRP XX% of and Capital impact the up the linked more loans record, of in for up adjust up the also and Markets year-over-year PPP lending quarter. we XX% addition were commercial banking, down benefited performance in quarter, strong line and exceptional improvement was we PPNR million quarter, and NII in Average average offset impact linked a reflecting year-over-year, the the in environment. draws And saw was last but X% If of challenging quarter. line in saw growth sales, of X% draws, results. to performance $XXX and mortgage EPS another rate quarter. loan the PPP which
the basis net X% of in income, growth, was About deposits. related higher points deposit quarter X. by the quarter, basis funding the consumers to growth small up costs rates lower well outsized businesses margin. quarter DDA government XX which I'll held linked growth and as corporate income asset lower we cash balances interest decreased partially points strong and and Moving during basis despite which deposit linked to of interest from impact the cover was points cash margin than costs, lower-cost other impact drove the and offset as given interest XX of as We costs a benefited XX% liquidity. higher offset of were in clients-built X and stable especially lower Net stimulus deposit was decline. quite down rates. balances on more Page with pleased accrued decline by progress a and margin the quarter, lower our benefit Net interest-earning
quarter. were That Our XQ end of the the ZIRP at basis end XX last of total deposit points 'XX in costs the back basis compares at points period. interest-bearing to XX the
to costs. So opportunity clearly, we have reduce continue these a to near-term
trading by shows capabilities offset done discuss in to the benefit fees and I'll was a mortgage Page million banking fees, strong high increased build were of XX% income strong $XXX record continued to recovery work linked-quarter reflecting Capital related activity quarter, $XX to basis, diversify refi assets. HELOC Noninterest up on sequential our reflecting million, mortgage really categories. Market from On a which gain-on-sale to increased Moving million partially a volumes, from $XX year-over-year. a mark-to-market the million XX% we've and basis DCM results fee and banking and particular. by $XX record, COVID-XX XX% on X. in and business. and Record fees margins other first continued headwinds loan
down significantly credit we the $X CVA. repositioned interest first early lower way CVA for impact reflecting to X% categories quarter activity compared rate card the we And only product the $X the million year, June, shutdown of quarter, increased in card and card a money was in revenue. of the last the XX% on money managed environment and services were environment. million XX% in improvement pre-pandemic positive lower quarter quarter. product decline activity from from a exchange a Trust impacts before to charges sales fees customers. rate down compared stimulus April. linked by back were in see revenues saw rate significant declines debit the quarter to about roughly market the effect Foreign service linked clients rate as equity and The the impact over led full to of given improvement fee and Interest investment level. On note,
increased Page declined Equipment and Turning expense X. spend and X% software to declined salaries quarter, reflects linked largely in in Underlying benefits. technology largely employee quarter, CECL Salaries quarter investments million seasonally and employee driven linked reflecting by payroll X% and $XX and outside initiatives. QX or and impacts on higher noninterest benefits lower taxes. growth linked services expense were
the X. lending quarter and Next, by $X.X were quarter, end the quarter our to commercial small loan impact linked core of full the Page PPP first let's the Average of trends X% customers. loans at the draws driven primarily discuss billion on up of business line
basis loan were was of XX% of have the Before utilization approximately other Core loans, commercial down education up on retail sale. to of X% loans at loan and offset Overall the approximately for equity linked million quarter. is $XXX quarter. from by in the were retail, of down XX% lower line the sales, $X.X $X.X line in second loans post-COVID first of quarter. stable to and draws and home PPP end substantially billion with of balances core a held repaid the March by growth the impact and linked-quarter been end billion draws commercial transfer The approximately education growth
originate-to-distribute sheet consumer increase We fee revenue will model and flexibility time. over balance assets, our which for generate are an building our
with average exceptionally small XX. was as down year-over-year. XX% growth quarter. growth excluding government a average benefited growth driving XX% lower clients-built in and DDA linked stimulus XX% linked-quarter loan growth strong deposit cost and growth our on saw in XX%, Moving quarter LDR and businesses categories, from the to XX% Deposit strong and liquidity. basis year-over-year, These robust of to deposit average of and We a came Page consumers PPP, outpacing
execute to basis XX cut XX basis our interest-bearing across able basis points aggressively were roughly this down our to deposit to manage We quarter, continue down XX playbook deposit year-over-year. all down We points and half channels. to our deposit by points, costs costs
Page Let's XX move to credit. and cover
for the basis partially basis reflecting million increased increase lockdown quarter by points first COVID as impacts, areas million Nonperforming said, linked portfolio we of potential largely We more basis retail, but assess at and impact points by increases in line quarter retail. commercial, points is XX $XXX impact our progressing in in in adverse the macro in were are of risk. performance The and to That ratio end closely of quarter. backdrop of a increased forbearance. of nonperforming $XX with stable reflecting somewhat the offset the driven at the commercial were year-over-year. improvement linked pandemic continue XX XX quarter, XX the loans and increase basis charge-offs than a points Net linked COVID-XX loan monitoring expectations, saw XX% with portfolio an
was increase, this by June This loans. However, credit a coverage at XQ, excluding of PPP in CECL of from in build XX. X.XX% reserve XXX% in $XXX XQ nonaccrual remained coverage X.XX% spite primarily increased basis at ratio XX our reserve We to the increase driven strong point net ratio million.
In approximately associated reallocated planned build $XXX to Page we of reserve the was million QX loans and program. million portfolio. the remaining effect, provide PPP with loan student addition, or reserves lending of On forbearance XX, XX% sale of $XXX detail a on goal. the the In were customer
retail FICO XXX, average XX% customers our when at through times and them to these of entered continue with our customers to seen approximately challenging these remains high forbearance. they forbearance have loans encouraging trends. work and score directly of The were We current assist
loans, release also which selective as June as Grantee interest through relief XX, $X.X modifications also loans us customers the payment. to XXX,XXX We clients. of form PPP granting and allow we needed for PPP covenant work continue commercial jobs. below billion applications our helped I'm in to proactively our XX% made to pleased on allowed that of temporary well with were support over in principal will say receive has $XXX,XXX. were help
to discuss XX Page our CECL Moving methodology to and reserves.
XX quarter We scenario, considered CECL uncertainty scenario. reserve used build. by the second of the is internal as At macroeconomic in the also reflective in the into a aggregate incorporate the general, of smaller be that we economic May end, aspects more drop the Similar economic key to continued quarter, baseline the have out, should a than plays of of scenario requirements more we use followed in estimate. assumes growth in our this elected a and It and last the half to scenarios. is over element loan our given summarized severe base GDP other which Moody's foundational outlook, In scenario If is second our Moody's XXXX. XQ, of XXXX the and which recovery net steep year gradual the XQ. half of provision
deeper positions. economy expect, it as are government effective than feel are require capital could we earlier, I with or then if impacts reserve the environment mentioned programs through XX, recover, to current levels. On positioned or pandemic for the to to strong liquidity if takes and we we additions further manage the Page longer less However, well
up a reduction to results our XX in risk-weighted assets. linked improved ratio CETX quarter X.X%, points given Our and basis strong
excluding Tier Additionally, point which, growth, X outpaced in XX%. X to deposit with quarter, issued our CETX, a basis during improved liquidity and capital. increase Strong spot Tier combination metrics of we XX in down the preferred increase loans, the million $XXX drove which the qualifying growth drove in loan PPP LDR, stock,
XX. Page Turning to
reserves stress losses. at versus and capital look Let's
Our $X.X Fed XXXX Fed's XX% strong in the of the billion losses very a of our scenario, using losses of and XX% is ACL represents now modeled stress the DFAST.
of by We SCB quarter which our XX, ACL, billion steady to average, addition, are $X.X the loss summary over coverage the median believe below capacity to XXX% test resulting PPNR estimates points XX% X the and levels improve On the Page These CETX our PPNR further In at quarters. estimated average our PPNR of of Fed's billion from XX Fed a approximately $X.X when we've preliminary X.X% Fed have the significant this our per estimates. additional assets, and The the capital stress of made we IPO. is X.X%. peer last generated above the of fortified excess of show well our progress adding we of we On results. basis the since is ignores generate. the
example, since assets approximately For PPNR has our XXXX X.X%. for to by improved XX% the IPO to
this during X.X% peer months stable PPNR XXXX. assets in to X.X% stress estimate a at real-life right Importantly, actual Fed's down compares on losses from of X was median credit our first X.X% of to top the of the in in XXXX. The and
above the We of our X.X% elevated our what Fed's adverse imply. However, loss is severely model estimated rate lower. the company-run significantly results business is believe modeled and credit preliminary that would SCB X.X%
we have some I release indicated to preliminary our as to June, that XX, exciting across SCB. in reconsider company. happening such, On submitted are the want to CCAR the Fed As a highlight Page we our and things in request
our are we foremost work building While forward a and towards better we looking focused company. helping continue and first clients, on are to
and transformation customer operations to the other We execute add progress new Planning and transformational the continue as to is initiatives of as significant targets. end-to-end TOP interactions to our to the on digitization steady including environment. are program initiatives, adapt well making towards post-COVID-XX underway
higher effort while arising coming out with new an also of the to are environment the from growth forward crisis. major opportunities We revenue strategic moving our current initiatives revenue drive in considering
prior for how year. are We up XXXX shaping XX. year to some commentary Page compared categories to full on key provide the Moving
interest is exceptionally net COVID-XX. loan in to growth other driven than stable offset to be related a meaningfully We rates. be mortgage, more results NIM due expect by in to broadly weakness offset the lower decrease to categories expected as Noninterest meaningful is income strong which in fee by the income
be modestly, categories normal expense fee a levels will second cushion in the expect to a to in We to variability and expense return expected moderation government path particularly Noninterest key help mortgage to production higher efforts. given which benefit tied up which several relief is is of customer greatest half, from from compensation potential revenue. activity and the dependent remains recovery. Provision and COVID-XX, includes programs for the on lending impacts stronger the mortgage more
solid increased and education expect demand We loan commercial driven the of growth, impact draws as during financing. programs merchant by half as well higher the in first line PPP government like in and
position our the with second the buybacks through year-end. capital growth the suspension ratios the in RWA our half robust, further driven year, by net improve a regulatory remainder Our in of expected growth, capital remains income moderation of and to over
forward, expect Looking dividend current and continue remain confident the capitalized we to feel well maintain can to level. we at
the XX commentary quarter. on Now let's to move some high-level for Page third
be expect modestly, PPP up benefit We NII to reflecting on NIM.
NIM smaller business. recovery view mortgage in an single-digit the currently Noninterest in expense reserve expect recovery the expected single-digit partially though other performance. offset categories. in banking reflecting loan expected growth benefit portfolio record is low headwinds. of by of range, by expense from second build, quarter on is mid- high a PPP, commercial in with the Ex rate to to of due modestly costs lower in with income loan ongoing be Fee to the down decline mortgage range, expected fee to and to offset Excluding down be dependent reflecting quarter. PPP in higher be fees levels, the is will is in be broadly levels the updated stable economic utilization loans, a being deposit provision the We projected costs the lower line highly impact be full up origination-related to
given during second commercial the down to pay the we line average loans the down Finally, low quarter. in in digits expect single be draws
sales, and line for loan delivering broadly capital initiatives position growth expect draws, liquidity of are our loan we remains stable. PPP up, impact key the our profitability, stakeholders. and To well on sum strong, to we be and Excluding
let Now Bruce. me turn back it to
