everyone. morning, good and Bruce, Thanks,
results EPS lower Rounding With our NIM. levels second Bruce stable $XXX came or million quarter performance very strong and quarter, well. priority, expected.
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maintained We in funding also second and strong liquidity our the profile quarter.
large is XX.X%. requirement in LDR period-end which XXX%, X XXX%. is LCR forma our category excess of the well bank pro And to improved Our of
we period-end linked front, billion by borrowings funding FHLB $X.X the reduced about $XXX On to quarter our million.
completing approach executed successful during another issuance, programmatic $X credit senior increasing That auto to spreads the structural it at a and base our of program, added about $XXX billion our we was to debt tightest our auto borrowings. date. with continued We fourth issuance million essentially our our and quarter back second was funding
loan losses preferred expected. were expectations. reflecting points, preferred a by coming and million XX rose floating quarter balances issuing also We in Credit a redeeming approximately second July X. little preferred of with in $XXX $XXX refinanced than The new line coupon to NCO of stock million million $XXX in higher of our on the little basis rate rate lower
basis ratio of X office, general prior XX.X% prior up coverage points XX.X% This for Our quarter. from in the is quarter. X.XX% an from includes coverage the up ACL
is Bank are $X Private very the capital well, $X.X doing billion the the the generated initiatives, of having playing quarter. strategic second years and through over capital markets AUM investments nicely out our space in and our deposits Regarding demonstrated private of Also, quarter. billion as this
as expected BSO excited of Finally, initiatives ongoing initiatives, AI from house our we are data technology-related about well benefits cloud as top top migration. and growing from including such as and the generative and contributions
Slide through more detail, quarter in starting income net Next, second I'll talk interest the on X. results with
balances. expense was XX% partly asset competitive X of basis increase deposit well XX%, performance points. at was reflecting to perform Overall, point runoff due average with to our NIM, down basis down yields very offset increase costs is by in X% respect sources, walk noncore X as receive from lower NII to our reflecting in with expected, including our was the rate and deposit deposit in interest-bearing which a beta can and franchise QX. X.XX%, at environment. see in net points X you from deposit continues point the quarter, decline cost in X higher down NIM linked basis interest-bearing basis As quarter. loan bottom the good down of basis interest the net all XX other margin margin With slide, in in our points This to swap a a
X. Slide to Moving
in markets were record wealth and strong up X% given Fees linked Our capital and card results quarter results.
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to Private P&L. AUM from grow second the team Mortgage given We hires. transition card a results our the ] delivered banking driven MSR will and continue new of a of decline as environment quarter asset benefit sales Production benefit from to increased given management higher the the and quarter increase wealth record in [ well as fees seasonally first contribution down net Bank, valuation constructive in with were as modestly in servicing fees fees market in the hedging well higher as margins. full the improvement Card primarily which slightly were the well given a volume. up purchase activity are a an from fees quarter debit platform by record, given
continuing and seasonal to we were slightly down as X, saw in our expenses in managing Slide while nice expenses strategic the benefit our a job did compensation initiatives. On underlying invest normal we
the expect and to X we progressing of million run program is benefit TOP deliver $XXX to a by the end pretax Our year. well, continue rate
work commenced our have and later provide we'll XX more We on this program year. details TOP
markets. was average our prioritize $X.X to with XX, the exits offset returning commercial The in commercial and reflects relationships, Slide relationship-based balance demand quarter balances, end lending. lower by optimize continuing we client increase loans in credit-only Core in On a down corporates the billion. largely are loan were loans and reduction by period quarter of loans our sheet of X% linked stable decrease runoff retail. lower driven slight The and in broadly of continue to paydowns linked noncore as an debt and decline portfolio issue
Slides on XX. Next, and XX
competitive do We Private deposits linked in Bank. quarter are of broadly lower in by excellent as extremely an growth environment. the deposits seasonally strong job an retail stable deposits was offset continue to Period-end
deposit the We with well holding cost Private of continue rate Bank. share higher deposits accounts the to of market as from gains cost see and as to benefit steady a Fed the demand slowing lower with migration interest-bearing
result, deposits. a XX% noninterest-bearing are of deposits about total at stable As
secured. cost about funding efficiently Our our product consumer and environment. deposits to granular, deposits are or has is our deposit effectively approximately our rate base of deposit XX% manage XX% stable across in costs diversified deposits allowed and of channels, This franchise overall attractive and the us insured mix are highly higher
basis costs given strategy. were quarter, linked our points Our interest-bearing proactive of deposit pricing management down X
C&I XQ. on to XQ by in charge-offs points seasonal CRE increase has in commercial and office that XX. loans. versus for X% increased auto were Nonaccrual was and in Net the due points, the average charge-offs Moving up primarily in The credit in by driven runoff. the been Office quarter, X a quarter. loans reflecting This which linked the were and reflected offset retail, basis decrease in level basis XX largely Slide in increases driven lower and reserve multifamily, to trends recoveries largely quarter, General quarter higher commercial stable fact general CRE broadly were by charge-offs linked
credit to the for XX. losses allowance Slide Turning on
a is and noncore the basis which overall optimization. reflecting lower broadly balances, balance point loan increase quarter, X paydowns stable from and Our commercial stands and reserves ratio coverage at X.XX%, first sheet given runoff
$XXX of general XX.X% $X.X first from reserve XX.X% million represents up billion portfolio office coverage, quarter. Our for in the the
Additionally, add $X.X billion. these losses you since general based absorbed quarter roughly have the $XXX second represents cumulative losses XX% reserves of XXXX, on we in March outstanding, office loss XXXX this million the of the a When rate of cumulative portfolio. the to balance
our past I quarters, general concentrated the just in $XXX million of portfolio to paydowns of far total charge-offs of the business XX roughly approximately is office loss properties million Over this X June so properties. at district point. exposure The about $X.X Suburban was central the been rate with $XXX given has at experience suburban mentioned. the billion XX% down Xx loss the and
scenario the which the much level, coverage of is worse some see of historical than that we seen the believe assumptions the On can office general left in represents you driving severe page, a reserve downturns. bottom we've key
feel we So very strong. coverage the is current
XX. Slide to Moving
have sheet maintained We balance excellent strength.
you ratio consistently of XX ratio be top for peers. opt-out TCE Both XX.X%, been current basis adjust under removal would if from the ratios the a points CETX XQ regulatory was proposal, the our strong among have AOCI X%. Our to and CETX up our our and were CETX
Slide CETX can stands on currently peers. You see to XX relative where
repurchased we million total shareholders shares, position, $XXX of Given and including in dividends, $XXX common our capital a we second the returned million another strong quarter. in to
Slide to Moving XX.
amongst our is strategy bank built and and Wealth commercial peers franchise. on transformed Our consumer build our aspiration Private a Bank to a bank, premier regional bank-owned the best positioned
consumer transformed strong a primary franchise and customer high-quality a deposit rounded in have with and we growth. relationships bank First, capable robust
our reason last the franchise from our dramatically deposit deposit of upgrade chief Notably, transformation has improved cycle. the consumer is performance the
far our more performance are median. time, more better this lagged in tools deposit We cycle, raising regional than in and now beta our pull better much our and we capabilities where peer levers last with so peers analytical to are
wealth our focused lending building adorable customers, on with We and also are have a prioritizing scaling are our relationships we we differentiated where platform business.
deposit continue with we build Importantly, Metro. as make York in base, to great customers improving engagement digital increasing we our customer share and New progress particularly our
believe Next, commercial bank the have we built we leading amongst super a banks. regional
and the the to of on are market slowest periods in middle companies and the particular, strong in In of after deliver poised set appears which have and our full ecosystem, economy high-growth We we are a serving we clients. sponsors deal-making capital uniquely private to serve focusing recovery sectors capabilities one of positioned the advisory to for decades. product
picks have middle consistent activity and right develop to market markets sponsor starting capital a are us that win of gives we We to the near and our environment up. as tables see top more league constructive a position the confidence
is building a gaining and very momentum. Private we're going that and well Finally, Bank, premier
base $X deposits, noninterest-bearing. are We billion we our and grow. capabilities to and with Management loans $X.X quarter opportunistically from Florida, Also, growing with banking a are talent Citizens have and attractive we banking the as offices Palm $X.X in of now of are at Wealth Mill billion We wealth the about continuing our centerpiece roughly private recently business to our billion effort. Valley, increase client of and Beach, opened prior now that and California bolster adding XX%
our exceptional the hit billion, quarter, XXXX. San way the management and Bank the We on our from target one of to the asset Private to in added X $XX by $X.X teams from second Boston, well AUM billion other bringing end total Francisco
the Private our track this Bank the line on in revenue to bottom $XX year. increased million Importantly, XX% on later we and break quarter, about are second even to
each XX. Slide point This XX for to in guidance and December. a of rate outlook We cut contemplates September Moving provide basis the the third quarter.
reflecting driven one markets NII should capital offset in up step by to more than across be be costs last seasonally expect to X%, We other down up swap slightly, this income by Noninterest X% cycle. pickup a lower categories.
Net expected runoff. benefit be stable. We to to should expense and charge-offs expect from modestly, to ACL noncore down noninterest are the continue be
Our million million come of approximately planned. $XXX with is repurchase CETX XX.X% in to $XXX about to share ratio expected currently
some the and to broadly guide about year we in feel good of with X% come respect are tracking modestly in at This the lower reflecting overall NII expected X% trending should to to come in to upper originally With takes. the end X% of Revenues line we NIM X% XXXX modestly better. above provided range, the level balances loan expected. January, with full PPNR. puts is down in the range of
expect broadly line to which do the on January well will guide. expenses, should to in us continue with be You
net expect the the and fourth a We quarter. with in NII in spot peaked that leverage the to costs positive in interest return rebound quarter quarter. third operating to given margin fourth
line in are addition, with expectations. charge-offs our net trending In January
XX.X%, of share repurchases ratio and and environment be our on target approximately of view dependent to continue the the level growth. to loan external in will the year We a with expect end set of
we momentum that expected. up, delivered to wealth with in a markets, wrap record credit in and quarter card results out good play To capital performance continues as largely and strong
capital the top our are group, robust and levels are Our funding. near maintaining peer and strong of liquidity we
well term. are multiyear performance are banking unique Private and Bank the consumer the of well over our strategic positioned businesses and commercial build-out strong Our drive progressing initiatives, including our medium to
tailwinds, we combined in hit ability these target. XX% tight medium-term expense XX% Given and return our with to to management, confident our remain execution strong
over I'll to that, hand with back Bruce. And it
