morning, Thanks, Bruce, and good everyone.
Let me X the third the and start headlines quarter, X. with for referencing Slides
million impact noncore start-up net the income we third investment portfolio. Private a includes Bank of quarter, EPS $X.XX of For $X.XX generated and the from underlying the of this $X.XX, and $XXX negative
start-up new core noncore results, ROTCE the those impact that quarter for you'll from performance. provided can so XX.X%. was portfolio our in separating Slide the underlying see runoff Bank our our you see Private On X, Our schedule out investment and we legacy a our how
it and franchise. expected our both quarter, performance X% were Deposits up expectations. quarter, forward swaps.
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during We quarter by regulations, further securities strengthening continued billion. liquidity increasing cash the to in potential the optimization for environment sheet changes liquidity about $X our efforts, and uncertain and balance preparation given geopolitical
addition, $X.X the ending In noncore $XX.X at billion, by declined billion. the quarter portfolio
pointing it LCR for Category X exceed for the Category both need we current banks, is liquidity and currently [ X banks. While ] requirements new clarity we on worth out that rules X
with quarter linked increase the improved provision net XX%, this $XXX our quarter, directed while $XX the LDR end of X.XX%, XX increasing build points, of solid the to of a primarily up from at X.XX% charge-offs losses a second credit million Our remained ACL metrics to credit for period-end million recorded portfolio stable and third a from our of delivered reserve basis quarter.
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points down interest Slide lower income. XX to X Turning X.XX%. was primarily reflecting on to down margin, net Linked-quarter were results a interest as X% basis net expected, which
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response cumulative rising cycle environment. Our deposit interest-bearing is the and has which beta competitive in to through been rate XX% XQ and
well performed deposit when has at in the franchise improvement of back is deposit the to This experience Our higher prior with our generally end was cycles of peers. significant beta peers. betas compared a
neutral, Our sensitivity prior third to the rising slightly roughly rates at quarter. the down end quarter the versus of is
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billion closing rates in see to continue average $XX the mortgage lower the a higher well than the diversifying balance them selective excluding good down Slide weighed slightly the higher linked fees these highly approach portfolio offset lower line growth million start-up loan broadly $X.X loans mortgage as as decline, rates. market new our was uncertain Average deals expenses, decline activity volumes.
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XX. XX and to Slide Next,
deposits. quarter, and with stable. by to up linked on commercial continue growth well We million do were deposits Period-end led consumer $XXX broadly deposits
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quarter, our we this to portfolio X.X% built $X.X billion reserve portfolio. of mentioned, General $XXX for the Office million which represents coverage As the against
loss We this office to severity of values of is charge-offs about a portfolio, about a General $XXX of loans.
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Moving to Slide XX.
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given balance liquidity position to our banks We quickly returned CETX that to environment uncertainties repurchases. to through million $XXX and share regulatory regulators. look to capital dividends proposed transition We and size. that levels as strong any rules plan bank new capital of to against and ratio by to and the of shareholders rules the total fortify new Our capital maintain we dynamic increased impact to may growing our macro XX.X% a us sheet grow and macro
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growth Private side, commercial to the in Capital. support we highlight how On the significant positioned we are
muted of to relatively have sponsors meaningful deal been recently, has deploy. amounts Although activity many capital
for demand given M&A market is there Capital the Markets a activity conditions. tremendous and amount pent-up So of right
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service million highest is markets centerpiece the Bank in some acquisition few and investment than with a network.
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the portfolio decline end billion XX redeploy Slide of as plan side to the of portfolio, core NIM, building remainder to balance growth relationship-based and The comprised down, billion the portfolio. the capital to we expected is capital the loans. indirect optimization liquidity about billion loan the recaptured Bank.
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program slide. TOP of side our right on to the the Next
million underway is and on $XXX run Our benefit latest well to by rate target program deliver a year-end. pretax
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on are at to save our looking environment, and given third-party simplify well. ways to underlying the In more we flat. in are as We organization keep spend light revenue targeting expenses XXXX of rate pressure
platform data On the to by And program our commitment long the of carbon tech our core multiyear modern in and achieve with very to of migration, diligently achieve working modernizing cloud own our a deposit to onto technology banking agenda economy. system we finance front, the the since platform. next-gen we neutrality cloud-based the exit XXXX. converge $XX a have extensive centers on announced and to all we a targeting come a we our XXXX IPO.
And XXXX help We've a their by to by are sustainable for plan carbon front, clients which transitions prepare billion a ESG target, finance recently lower and way
Moving outlook fourth quarter on for the to XX. Slide the
that the the and assumes steady the incorporates private through end outlook year. of Our the Federal bank rate
the given day before the noninterest-bearing and special level higher rise around points pickup coverage a categories, beta rise be the and to quarter, the yields, expected on X% a we rate runoff. cost stable, of be to to reserve from we expected rate up approximately basis low-cost XXs and normalization. and next X% migrating XXXX first environment. curve, end and to the decelerating offsetting deposits mid-XXs higher ACL expense is deposit approximately down be asset noncore to General than the to feel at benefit NII will Markets of Bank the on benefit terminal about expect We expect impact current low the Noninterest seasonal runoff to more a from count.
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a our to increase environment. to is will depend of assessment level opportunity the CETX the modest engage XX.X%, of repurchases, approximately share expected upon Our external in the of to ongoing execution with which
targeting I assessment.
Also, mentioned the flat includes guidance, This and XXXX. through we've portfolio anticipated XXXX the we Bank appendix the Beyond earlier, noncore as on Private impact expenses. in swaps and FDIC 'XX XX included Slide are excludes the the the XQ underlying special
expense We benefit noncore off rundown. swap the partly expect the the drag short Fed be swaps XXXX XXXX run over higher to from in meaningfully and Notably, as XXXX swap expense offset by through normalizes reduce will the to rates. NII
swaps addition, results of we 'XX terminated delivered while this quarter In impact the and up, dramatically dynamic wrap environment. XXXX.
To lower navigating solid through is in a
Importantly, us position, company progress requirements capital, the will challenging. becomes are a liquidity more positioning and and with environment if well finalized funding as made the we serve which regulatory strong good
our franchise back returns.
With for risk-adjusted deliver over us strength balance Our strengthen sheet the to it take as Bruce. to through to also strategic I'll attractive we and of future continue that, positions advantage priorities opportunities hand the
