the of with normalize, XX, for to themes that Thank net was of today. the level all our cost interest quality quarter Meanwhile, combination quarter income merger with significantly most sequential on return display related improved of an charge-offs On of to thanks you, date. growth XX SVB our high the recognition sub-XX%, From credit asset better-than-expected the performance and second overall continued to standpoint, expected net Peter, The during synergies. thank with for reserved results. to power expectations. exceeding were efficiency and the from we of full increasing Page adjusted to metrics points, basis summarize and increase as you strong charge-offs SVB joining us ratio
office-related to is and resilient. limited, real exposure remain our overall metrics credit Our commercial estate
sequentially XX.X% the rate declined mentioned of at to that Moving expected respectively. the Banking an in sheet, loans grew while decline Global balance -- XX.X%, and due General Commercial Fund Global annualized Bank Banking to and segments Peter loans portfolio,
to continue driven growth resilient of clients X.X%, core in annualized bank. by headwind. the in be and an commercial grew sequentially economic the Deposits direct deposit Our business face rate of at
to balance just remains the in we are base mentioned, pleased the Peter SVB As during sheet our And stabilization position see finally, quarter. deposit strong.
build We asset through our drive in growth. turn, capital continue clients earnings supporting to organic to solid earning
As in SVB ranges, as our XXXX the proposed capital capital we comments, target stock above on our remainder on focus integration repurchases mentioned new operating rules. and pause Frank of his we for anticipate while clarity of we gain the continue
and Turning to XX. Pages XX
Second quarter shareholders GAAP million per net share. $XX.XX income was or to common $XXX
Our results acquisition, year adjustment sorry, full purchase a bargain impact, second the to as quarter of the were as preliminary SVB well quarter $XX gain. GAAP impacted by full the impact million
provide and showing we income reported ROA the drive relevant $XXX X per Page On and notable the XX income of bottom million the supplements periods. section adjusted the X.XX%. adjusted an results at or the the quarterly table reported yielding $XX.XX top detail statements. annualized results items Page and XX.XX% for middle for table to ROE The an the condensed On represents the shareholders items. adjusted of notable the year-to-date respect common GAAP basis, from provides XX, page those impact results our net of of of to items The at with summarizes notable results. the share net income was to in page
the to adding During the net GAAP impact these second EPS. adjustments quarter, of had $X.XX
the the by from the SVB $X.X income due increase combination, interest accretion to linked an impact billion basis margin to interest higher due deposit partially of the XX quarter in offset Page points assets, of billion $X.XX SVB Net to Net impact full Turning by on increased XX. acquisition. mostly earning quarter, costs. of over increased a by the yield
points, a related income. basis Our to representing XXX points cycle-to-date by loan of beta XX of accretion points, XX by deposit which yield costs increased increased basis basis Meanwhile, XX%. was
from Page the quarter XX the reference. forward a prior provides the from roll sequential for your interest in year of margin quarter and net same
Moving sensitive ramp basis X.X%. XXX income the to a interest during in Page net negative asset XX. impacting remained We with quarter, rates negatively by points
environment. prioritize larger macroeconomic continue to by the liquidity balance current keeping We management due cash risk intentionally a to
excess However, the cash have in some we to put begun soften sensitivity. duration the work some of to to treasuries asset of U.S. short
betas. our moderate exhibited and deposits lower On expected deposit Page XX% XX, the our we betas on betas. provide with actual information exhibit remainder of to higher
cumulative the than quarter Our rate our XX%, second for higher was previous higher longer. beta which stayed changes driven was by environment forecast, through interest to as rates have
we to Given from deposits, deposit catch this as more additional expect environment bank and recent to rate third the competitive we direct cumulative our the our increases, costs in the and by beta XX% of raise quarter deposits channel. for increase rate-sensitive up end
the to previous increasing direct reduce higher-cost our beta funding hiking rate up cycle, forecast in will wholesale in due Over for our the is XX%, be to balances cumulative well part from interest X% our we approximately as as reliance. our rates which estimate, longer higher bank
by included card. in income the related $XX lines client and transactions. $XX in foreign managing impact currency of investment over to momentum XX, and of fee-generating due impact The million million as fees, $XXX adjusted a earnings client rail business fees continued quarter to increase acquisition off-balance On SVB million the noninterest linked a customer sheet increase international for and funds such the SVB our in increased Page legacy
both line million with other services million In from credit full quarter increased SVB early in policies several were small higher to cardholder noninterest charges other addition, partially the Service volume BOLI unused income increases deposits in of decrease quarter These in associated across BOLI $XX and declines segment. the our impact and a XXXX. primarily of the smaller offset given of on $XX line service fees charges spread increased income due surrender acquisition. the strategic items by of income fourth in
representing the of the XX, increase totaled linked expense over impact the $X.X quarter, SVB Page On adjusted billion, million a $XXX acquisition. full quarter noninterest
showed during efficiency improvement to XX.XX% ratio the dropping adjusted significant XX.XX%. quarter, Our from
direct shows quarter. outlines to XX the sheet detail, key expense Page not For in our ratios. TBV income I'm fact for share highlights drove that $X.X cover would position to I during we of while Page composition per and liquidity the but your your quarter $XX billion. second like share our increasing to per this reference, the by balance XX going growth attention noninterest adjusted and
to loan balances SVB Turning $X.X to Loans Page down quarter. our drove the which XX. linked by declined the total billion in segment, compared
Fund Global we higher of billion portfolio elevated to quarter. experienced level elevated XX% second the draw the as related was repayments. draws of decline of our at mentioned, and Peter result, Approximately a As the paydowns Banking end anticipate a $X.X during March
facing direct environment, impact lower on fundraising capital market industry the in landscape, and exit fewer the challenges are numbers deals. venture The resulting difficult a private having investment a
and New industry the post are draws existing lines on April in May, March muted in events. given uncertainty
activity existing First headwinds, in Peter continued growth, did we of solid bank. percent commercial However, growth the Despite up or $X.X growth Bank portfolio $XXX commitment clients mentioned. in the in annualized million annualized XX.X% billion legacy or month as Citizens June, see the our General industry XX.X% including to experience pick and for
segment We offset an loan direct your billion X.X% our deposits by shows or experienced SVB shows Page $X.X the bank, in for increased XX annualized the a decline by $XX.X on type from in basis XX the reference. billion by linked partially quarter. growth Page and composition in deposits.
to legacy commercial to in and bank the help fund support leverage and segments channel the direct worked to balances loan increase have bank SVB. growth diligently to We general
pace. We albeit deposit through a in end the direct continued growth bank the do slower at anticipate XXXX, of
to quarter. the during billion FHLB to compared the borrowings expensive by traditional branch reduce cost higher enabled is $X.X more second channel us this approximately While network,
April. this the while billion deposits of in majority Importantly, occurred sequentially, $X.X SVB declined
quickly stabilize address outreach effectively worked innovation partners understand economy we to to we detailed As market misconception and have them. franchise Peter by the more to noted, so analysis performing can key and
to also team in front of worked client-facing clients. our see hard have keep and We members and
a in June with SVB deposits As efforts, since deposit a result remaining $XX reported, seen change not have billion these balances material we last XX. we of approximately of as
by representative of and rate insured our raise Our shown impacts increase stay the The quarter with and by to cost X.XX%. basis type, are during the XX XX. rates to on peers. is Fed need competitive The deposit to from points composition hikes segment increased Page deposits the breakdown uninsured our of
The to funded this by this made predominantly our rightsizing We FHLB just borrowings initiated approximately is Page I by up borrowings reflective balance continues quarter, those and increased last quarters sheet deposits be spoke On decreased features $X total XX% XX% this had deposits. as the we call funding, XX, deposit billion from to. in quarter. progress previous quarter growth of we which to of
metrics medium to drive deposit on continue to by the lower we Over concentration the plan focusing term, long non-deposit core growth. to
in and most On Bank ticket prior $XX normalize. quarter. in consistent totaled equipment the at charge-offs In with small were segment, basis with or date. occurring large the the or the reserved first Page continued and to Commercial leasing portfolio. general result SVB net segments, were XX points charge-offs net million estate for points quarters in primarily million in Net charge-offs which from of the real in the basis million XX, increase of office $XX acquisition fairly were the credit quality quarter, for charge-offs $XXX up The metrics XX million $XX
of to would and quarter. the few charge-off identified call charged XX XX as that off be points our during on net a were innovation basis a credits range to guided We large we last
remain given innovation we we While depressed funding, charge-offs at market in quarterly continued levels some don't stress expect these levels. the of expect do portfolio, to the
the these and lumpy. charge-offs of are can some However, large loans be
increased primarily page, was bottom of near-term quarter the nonaccrual XX X.X%. basis concentrated interest estate is finance exposure The rates, to ratio in remote to points which to work Moving real sequential This segment. and Bank general the Commercial be loan by from the maturities. vacancy the the largest within increase dynamics, rates, office capital lease elevated where continues rates, is, requirements impacted our
basis by increased during ratio X.XX% Our allowance the to points X quarter.
values forward Other driver in ACL The quarter. CRE the in largest baseline declining roll of increase macroeconomic ACL and our XX both Page provides downside to from also in a on were the quality the factors scenarios. index as a portfolio linked value of by to such SVB to in forecasts was deterioration loan fair reserves the but loans mix discounts increases increases segment balances scale. and and on acquired much contributed SVB. offset partially credit lower in from the adjustments smaller These related
on X.Xx. the left-hand the As annualized nonaccrual charge-offs covered net ACL X.Xx quarterly and depicted provides corner, coverage loans bottom of
a X.X% the XX exposure XX, exposure office CRE loans portfolio, hardest diversified loans totaled highlight portfolio. office total the includes general office we billion total of including and San loans. On XX% Page general with well end New total which XX Chicago which or $XXX was which Pages is $X.X or basis hit totaling with of and Francisco, York, quarter information the some markets combined geographically nonowner-occupied general to of our total at XX.X% on limited on of million
shared B where This we assets consists call significant in quarter in in primarily loans, the charge-offs. our $X.X which repositioned of of the loans of on office and at representing dues, general totaling risk the and portfolio most than past is our office Class bank, we end $X.X loans total billion X% general credit had last billion commercial the of is and seen deterioration bridge less loans. criticized have As
an on general loans are ACL to of of We X.XX%. the on an ACL carrying portfolio X.XX% compared office those overall
portfolio CECL over prior Reserves tenants of some as the more general portfolios forecast. as of long-term reserves in general loan or in strong is of the under is remaining increased Most nature support well average smaller guarantor the from and office specific credit size bank. these on macro exposure in This granular to the both due increased the level leases. deterioration quarter
this We portfolio not in date. deterioration seen material have to
XX growth. ranges. total ratio primarily continued and above second the ratios risk-based of On result our Page XX.XX%. capital CETX quarter, income The XX.XX%, with remains At target our was ratio in the XX, end ratio net our our the increase capital or was our of end all CETX basis was in strong the points upper position of
our demonstrates XX. I liquidity positions. sheet Before XXXX and that strong outlook a solid with continue our conclude outlook, to and with discuss we credit Page operate Page quality XX balance capital, on I'll
lists numbers each quarter X are column noninterest provides and column metric. results second XXXX XXXX X for second the The adjusted quarter for items. for third our The full Column the income guidance expense notable year. our of and for for
loans. Moving to
early We We loans as venture to life will quarter tech banking out market expect of in investments, that fund deployment in rates global from be and balances. levels lagged higher remain lower essentially flat to business market the business of the do to interest the modest continues lower see months declines capital in further the second sciences anticipate of impact the our of and the well depressed. flat being as for declines We XXXX. activity as capital
general at end be balances business. loan to range in equipment the by result, growth lines our verticals, the largely year-end down will commercial finance middle we banking $XX continued in The expect second the SVB declines the as billion mid-$XX GFB network, mid-single-digit branch market billion by momentum and expect a offset of in be segment industry of from in we As percentage quarter.
deposits. Moving to
low percentage a expect decline. single-digit We
exceeds sourced $XX VC to funds funding worth SVB subdued of stabilization of $XX fundraising. the by It's of of down will from billion to burn encouraged that we're expect anticipate level since we per April, range the years. remainder continue experience broader billion quarter that clients to which deposits in the cash remain XXXX, we that SVB noting a is prior significantly for from market While
book billion of $X partnering That clients existing and of through actively balances, in working to on will projecting the decline with laser-focused is we the partially and we we're to the year. billion back portfolio team believe SVB runoff. end win said, are offset which natural Consequently, obtain diligently SVB this some $X the deposit a of our
by increase direct be a in offset decline the We billion bank are expecting partially SVB deposits. $X to
Moving to rates. interest
X.X%. we XXXX follows unchanged forecast Fed of remain anticipate months peaked the effective We into curve. forecast net rate will the beginning XXXX. funds forward that interest Our there, income. rest of at for rate the implied has the the From On to and
While we remain quarter. margin compared to absolute we coming expect income in and to do the of interest level to elevated, the decline second net begin expect the to them quarters
deposit of and an This Accretion accretion basis recognition and on continued on XX margin the moderates, pressure had the to see we point will impact of the pricing. income absent pace and repayments second occur loan the approximate as due impact quarter our higher accelerated accretion basis -- range yields. of XX The by be the moderate to loans, partially higher shorter deposit coming accretion to we expect costs this the duration on lower XX points and of to partially in and offset quarters. loan impact will were investment in
rates of increased the higher of project by range the quarter to margin well direct from full We as as which at to raising is increase sizable income to reflecting the $XX $X.X XX%, to to on a billion billion leading range dynamics bank interest the At to anticipate billion competitive as we what third for the billion. first well $X.X in in $X.X I mentioned. $X.X our quarter of strong quarter net net the full-cycle close estimate XX% We to mid-$XX range beta time, as results in year expected are longer, interest previous year-end. second of billion income same end increasing to billion previously XX% to an due our XX%, our up deposits to pressure was from the
in the charge-offs, points performing spaces. most charge-offs small see net general annualized charge-offs of range. and portfolio well, year we expect office net the leasing be quarter the we concentrated Despite to estate third and in XX basis On full commercial equipment expect bank, to the real to XX
in expect we innovation don't given expect to remain continued levels. the the levels quarter the second some charge-offs we While at of do quarterly market portfolio, of funding, level losses depressed
net We XX of expect quarters. charge-offs SVB in the the basis in range points coming to XX
ultimately of have adjusted higher in credits off On large On portfolios, overall sizable a income. the anticipated us SVB range. X Given to or of XX the quarter. to more XX basis an charge-off CIT third the in $XXX can X both in $XXX the end take million can ratio and we credit noninterest and size net noninterest million expect our charging quarterly to on legacy basis, the impact points than the to income
this on apples-to-apples were SVB-related or income noninterest We quarter million XXXX. million $XXX see closer settling the to second SVB acquired, $XXX basis in of is quarter an at businesses this approximately of that the in to per $XXX contribution million million to the on were annual million reassured per $XXX level $XXX quarter an roughly On in and basis. total
we are in half client some that expecting given less to the be off-balance run suite the So of products. of sheet especially slightly rate than attrition
legacy respect in With rail have to and we Citizens, wealth businesses. our momentum still First
maintenance increased are the expected X past utilization rates in previous have over the XXX% And above of to been While expenses to quarter's quarters, rail, increase at renewal XX%. or rate. for
noninterest to related recognized 'XX approximately acquisition the $XXX SVB Moving estimated expense. to expected XX% not We at in and million in remainder with do expenses include 'XX.
this million approximately So year. $XXX
sorry. will in income FDIC recognized be expense $XX forecast in onetime expense expect recognize $X.X expense billion to the cost This quarter. $X.XX adjusted we will lower forecast, third to of the saves. as assessment notable included and move do range not a anticipate billion -- per noninterest quarter to million XXXX, the considered We we remainder further For be adjusted is noninterest our
of slightly meaningful million We of million reductions $XXX in progress by efficiency 'XX run estimate. cost this end this million primarily the on path high slightly to by out of expense quarter achieving $XXX ahead to our made our over pushed range the saves the schedule the due of the end expect and putting in At juncture, end the the cost back of of XXXX, we to of have XX% taken us above rate office. $XXX synergies to
we As a existing the consolidation systems business duplicate driven by redundant of will as processes clients. reminder, their lines front most focused or of be synergies remain of supporting the on and and back-office
we continued the margin to than higher cost the of quarter ratio low partially forward, offset by lower slightly in expect Moving saves. efficiency recognition second our XXs, was as maintain
heavily benefits be tax a our and in York, our update to higher larger to base. pretax rate tax our revenue -- income the corporate such weighted our pre-existing amongst as XX.X% previous expect XX.X% to in and we California tax amongst is distribution taxes, income range, spread the are as jurisdictions line New On higher a with
for of share. previously $XXX gain, XXXX to we expenses. $XXX day derived including was impacts adjustment subtracted $XXX to acquisition the the of earnings a of estimated the upon the purchase GAAP adjusted after-tax an our onetime As preliminary range guided per to but range adjusted EPS, acquisition CECL would per out SVB forecast, range and The updated share. we X Based new guide $XXX to bargain SVB-related from
to expected acquisition approximately slightly million The $XXX as change also ahead by absolute given gain, favorable the CECL slightly are forecast excludes preliminary FDIC to projection primarily in and as on environment, from offset X as Expenses assessment prior rate synergies. the day provision partially merger income put related the higher of $XX our forecast expenses guidance interest well purchase This previous impact net is the XXXX. higher expense. bargain expected we million
are I future With our question-and-answer we customers, the the excited it turn we will prospects our and over operator to long-term and the continue to clients, about To for value that positioned instructions conclude, portion for associates well communities. to that, delivering believe of are shareholders, call.