quarter you. earnings XXXX call. our to Thank Welcome first
today Joining Credit Niles, and Chief Financial Chief our me Ahern, are Pat Chris Officer; Officer. our
should for for that Before Associated. results call discussing last will earnings be note this our the leading quarterly my quarter, time the first I
forward over phase he with as serving and we take confident premier working our will has progress week, banking XX and of as innovative baton track Andy our Harmening, that products. to customers' advisory a stepping made record Midwest's regarded driving digital support spearheading will be highly next and financial capacity Andy and takes April more I with growth one company. and trajectory. the to as experience I'm continue to Officer is be the President Associated Next the the who in XX. in I'm the Chief and our growth success profitable Associated an operational highly look profitable Andy years of Executive And to passing team of pursued proud than vision becoming experience, leader I'll institutions. on improving of Andy of a of excellence,
almost first during It's COVID-XX are increasing the have started first-quarter these have turn we've anything of But steadily 'XX, meet me vaccinations XX months of when our now to need in continued to unlike working our trite been our the and past to that quarter front frontline needs to of and clients customers. teams throughout before. reopen. Let Businesses encouraged and with in markets. results. deploy to directly they availability seen say We've trends, banking experienced back our our by also And where us. invest customers' technologies we've
continued improve With our the economy have to showing of across portfolios. dynamics all signs credit of improvement,
credit Our to liquid, positioning down customers for this continue pay expected their remain year. later recovery themselves lines the and economic are
as in economy XXXth many As we our signs a our celebrate of we markets. year see a company, strengthening
The first X. detailed on quarter's Slide are highlights
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We indirect consumer by more expect $XXX begin originating and total paper to production with diversifying of auto our XXXX, or in million the to portfolio. fall, adding
the portfolio's achieve to yields expect We mortgage we those exceed residential net scale. as in our book
rate volumes We auto more from loan financials indirect the the expect derived costs. will run or less be with QX by ongoing income year-end, offsetting neutral
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-- have of over Our seven for retention improving that half than rates been more period. reflecting and attrition now years time in
standpoint, which are strong expect over or and of lowest-cost approximately quarter-over-quarter from XX% billion. week. are categories, quarter, growth driving be approximately number to Our and ago, a pandemic. study, posed data survey At $X.X excited customer Power of I'm released continued of in average call the by particularly $X.X grew up we suggest by steady balances, Midwest by in $XXX 'XX. deposits, and the in end-of-period growth one Midwest the and million fourth final over Retail marked checking you served for and savings of first continues billion leading in higher-cost the network are our the our to quarter, period categories the to Banking in Upper challenges interaction This were customer been to J.D. deposit and while a first levels currently positive the Upper we recognized deposits from next our were for the dynamics our reflected From when the same by their customers quarter trends low-cost that and growth low-cost J.D. center which These as year strong have we $XXX highest the by first-quarter the accounted reflects results despite to deposits tell deposits million, Region well reduce billion $X.X specifically. time up respectively, first checking place Power noninterest-bearing savings end XX% ever.
reduced in net during Slide refinancing million $XX X, to that fourth dollar would had first-quarter we $XXX the and indicated interest day income down was And LIBOR, pressures from net be by income quarter. million, Turning QX. fact, interest previously count,
the partially lower. by deposits, offset declining the on additional improvement the expense our see you can on yields came which from was in As lower continuing portfolio, low-cost continued our of mortgage books. interest the to the customer influx points, on realized drive and side, in chart residential XX borrowing, drop interest reflecting levels our of prepayments of combined most basis the refi activity the impact by where yields significant with asset expense were right, down The
the quarterly in than have While we XX point was basis margin drop more expected.
second net continue seven we forward, margin that fourth expand the interest to of of income our look gradually we the breakdown in interest quarters. over impacted shows QX. through factors a the specific As net Slide expect to course
As approximately which impacts for net refinance-driven such cost as slide, quarter origination mortgage we prior depressed premium indicated the by on for key were income quarter. the the factors amortization, and $X interest million
the in course QX. increase the income we current rebound banking costs in quarter, to expect by over mortgage refinance yields offset these were of mortgage wave net the slows However, an as and
QX. March, the LIBOR PPP and were day February On LIBOR-based to count, commercial our in side, loans the impacted relative by and compression slower forgiveness rate
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the the We quarter. average still CDs, have $XXX of with over X%, consumer weighted in by mature rates end set million also to above third
to we're our the and the rates, ongoing year X.XX% X.XX%. for to margin Given current margin, outlook quarter's full refi activity, revising first
Turning to Slide X.
noninterest revenues, at wave, quarter, from First-quarter million, in activity. the came fourth the and capital fee-based strong refinance side XX% of mortgage over up markets positive $XX reflecting the income expanding
mortgage seen side quarter-over-quarter. on of the slide, be $X income banking was can million the As up right
slightly an sale under Wealth increased Management management, buoyed X, quarter-over-quarter, management markets. equity a over and the We we assets still we quarter, quarter anticipate XX% As market. move will fees syndications Whitnell March year that rate. at in of $XX.X moderate this the $X continued Capital rate environment. strength mortgage as an of MSR income, we expect the but of last valuation, we year. reflect to much recovered million, QX came activity markets wrote fees into the later in We 'XX active increase down reflecting more closed on also banking we year-over-year growth the in than declining with for the and note first ended of risk strong billion by XX%
As of base, debit card a further levels increasing the and we've our March. activity purchase card seen credit spend and throughout positive, record month customer including in
on disposition We totaled the Whitnell gains sale branches nearly during also of which the of other the Rockefeller, investments further quarter to million. and $X recorded
$XX Given by are expectations noninterest our million full-year the we to million increasing our XXXX. updating $XXX outlook X, to fee million highlight $XXX reflect above, we in On income and of expenses. Slide income
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$XXX our allowance for 'XX baseline $XXX Moody's million, XX. environment, to XXXX CECL initiative, of trend assumes assumptions. expense continued The our update mortgage Moody's reduction and lower the As commissions, initial quarter. compensation additional and Whitnell incentives, following outlook other is approximately from $XXX branch a during COVID to low utilized driven tied the million. expense The to on and by forward-looking vaccines. continuing shown the sale close and a We effective We're between partial baseline to the the sale added forecast Slide available a offset, million auto combining After an expenses of March revising expenses rate indirect and stimulus, full-year and additional forecast core widely
and release reserve net we the net release quarter, of the posted further additional gross an driven a million reduction million with allowance our in reserve Following commercial million business in the by and for all million This $XX allowance of gross reduction allowance, million units, reductions a business quarter fourth $XX first our lending. retail a in release core $X reduction portfolio, of $XX our lending to in our of general our was $X related net CRE 'XX. in a in
Similarly, our from from down quarter. our in the prior $XXX declined million, of reserves As of X.XX% during March loans ratio XX, allowance to $XXX was total quarter. million the X.XX% to
levels XXXX. down the the to loans to to of day one back drop end by approximately CECL expect allowance We
Our nonaccrual all on loans, presented the charge-offs quarterly during Potential and problem credit Slide declined net trends are loans, XX. quarter.
normal core receive business also billion and see and have of assistance our in customers Our gas. Total 'XX, declined units make at payments. the XX have positive with I'm in able key very fell decline, basis been continued to needed who COVID $XX at just deferrals $X.X the active Retail of total here. commercial and ended. Most quarter-end. deferrals up restaurant notably to continued making trends exposures where during first additional and million points quarter. to peaking pleased of exposures now not we've oil quarter. just the decline We've loans deferrals quarterly all resume our continued across to total to all second loan quarter a After have
continue, positive the net the very year. a dynamics we would provision nominal expect credit for Assuming
As our remain shown on regulatory capital Slide levels XX, strong.
in Tier increased of the Equity basis TCE conserved of as first at points continue or above We'll Common X.X% quarter one from capital or at uncertainty. we economic light and X.X%. 'XX fourth levels ratio XX the above and target to points grown basis Our XXX CETX from has quarter
And for the full margin net our guidance year $XX our revising between trends. positive come full-year guidance guidance reflect $XXX approximately to we Slide 'XX. of million. now X.XX% revising so our to million the reflect $XXX our margin million, XX, income and We in We're to interest ongoing down to updated We're expect dynamics prepayment up X.XX%. a income on fee noninterest reflecting by recap
pressure to mortgage and expense driven additional We're revising incentive personnel the additional additional to expense We new in commissions, downward indirect expect expense, fee our million on this our million additional $XXX to $XXX the strength our initiative. margin. upward to businesses guidance outpace support compensation by and approximately auto
to continues nominal. positively now very continue we we trends, see and generally economy as credit assuming provision full-year the expect, 'XX be the the Given we to perform believe will
higher levels we rate would no corporate range, the we With given to annual tax to assuming your XX% take the profitability, rate. change Finally, in XX% happy normalize of tax in questions. that, expect be to our
