echo Chris. to Thanks, Brian Vern, comments I well. welcome your on and warm would a as
Slide X. now am I on
net continuing operations per quarter was $X.XX For the down from common share, prior from and $X.XX down last fourth year. the from quarter, $X.XX income
totaling Our results impacted X items, by share. this per were $X.XX quarter
assessment; presentation. special First, breakdown our $XXX in The third, expense; charge, be $XXX million these an a or for of million the from pretax can total efficiency-related last million slide $XX after $XXX and from million found second, of of million page settlement $XX tax. an items pension from a FDIC
results Our fourth provided were month. consistent we with guidance generally quarter the last
line points our by margin we expected, we early net third quarter, some as this stability and the net As portfolios. treasury basis the see swap interest increased and benefits from income to interest to quarter, saw relative X began in our
the low estate as uncertain for allowance our losses added migration a and remained we points, Fees to some modest macro relatively net in these $XX still Without declined million percent portfolio, we X% last outlook. reflect and month. end to range growth sequentially to Expense third mentioned. provided been quarter the was the on attributable primarily the would of the of primarily have at XX stable, compared I loans charge-offs better to items credit real items, the X in expenses basis
our focus our on Chris results his risk relationships, improved highlighted in position as primacy building our and and discipline. strong our Additionally, remarks, reflect capital
Turning nonrelationship Average balances, which prior reflects optimization were business. and to period from X% and efforts, balance quarter. The were the which for year-ago quarter. from deemphasize average C&I and our quarter both X. Slide by in only loans a planned billion, in down $XXX prior reduction reduction the primarily credit The prioritize down sheet decline relationships the full loans driven was X%
balances, this of with reduced and risk-weighted in $XX fourth the the XXXX. quarter approximately We expect also half by in majority billion first risk-weighted contributing. quarter, in The $X some reduction from mentioned, in in billion lower commitments We reductions Chris was RWA as modest by assets loan would assets the XXXX. of unused decline
period commitment a grew year stable, $X year-over-year to relatively prior to funding. average X. for long-standing Turning compared of by base Key's ago quarter. a the billion, volatility, deliver to deposits to of core deposits year stable were continues Despite period-end Slide deposits market primacy and diverse and we
and on funding on was we improve build, average, offset the decline a deposits balances primarily of to deposits. deposits increase The and broker continue $X a deposits grew which in attribute by seasonal our broker funding as to mix we On grew in reliance and billion deposits growing consumer and consumer X%, commercial by reducing core relationship commercial wholesale quality basis, X%. sequential mostly
billion of deposits, we growing the reduced generated almost and by $XX Since billion. $XX loans liquidity of by end wholesale relationship and first the reducing quarter, borrowings
rates, in in our cumulative deposit began interest-bearing raising XXXX. year-end beta, cost XXX was line by quarter prior with Fed points and XX% guidance fourth the interest since includes basis which of total XX% was our deposits, approaching Our the deposits all of
higher environment deposit mix noninterest-bearing on our abating The as X% to to as by though some remain deposits mix, XX%. declined the be to long expect continued shift impact franchise, sequentially as continue our pricing high. we rates to appears Pressure rate deposit across
equivalent the and year prior $XXX from from quarter, XX% was Turning X. interest net million income the ago to down Taxable slightly Slide fourth the period for up quarter.
to compared for period last the quarter net interest -- quarter fourth the fourth X.XX% margin X.XX% prior Our X.XX% was for quarter. for the the year and same
Year-over-year, impact cost net interest higher as from income and the of the the outpaced deposits of higher borrowings net interest-bearing increased reflect benefit margin asset and yields. earning rates, interest interest
Additionally, higher the deposits. mix experienced funding from sheet a shift in cost noninterest-bearing interest-bearing deposits to balance
Relative income increase interest interest actions third the the deposit and taken interest-bearing from manage The asset net driven and to key were by which benefit yields. earning costs, improved interest levels in offset by higher liquidity risk, increase exceeded net of to mix. the was elevated partly higher quarter, an margin funding rate
Key's balances adversely impacted reduction sequentially, income interest net it planned margin. the benefited in loan interest While net
by together, margin reduced basis the this headwind lowered year, margin short-dated by quarter our to interest or million $X.X for reflect Our and net net $XXX full net interest points billion quarter. which, the our net income and and treasuries income from interest XX interest swaps, continue by this
$X.X cash of our discussed terminated As billion were to earnings in which throughout call, fixed scheduled flow during quarter third mature received October, previously XXXX. swaps, we
short-term interest Last maturities it treasuries, in XXXX, expect margin the especially said and continued would back quarter, the bottom, did. as the our benefit that we of swaps net we half would from more year. Throughout mature and of
and The decrease a million year XXXX, $XX $XX Slide and reflects the to $XX X. for from from ago down million placement down decline from and by lower the fourth debt in in fees of the ago year fees, third noninterest quarter banking was a income advisory. driven Noninterest Moving million period syndication income M&A $XXX investment quarter. million
for sale decrease corporate by million primarily customer prior driven income on in decrease a income, third million, The the $XX declined other $XX the noninterest derivatives quarter. revenue. Additionally, reflects services quarter income loan driven gain a by a trading in lower in
I'm expense from was Total now from the quarter ago for on and $XXX up quarter. noninterest Slide billion, the $X.X last XX. million $XXX year million period, up
expenses efficiency-related reflect pension and million results FDIC from quarter impact As fourth mentioned, of $XXX settlement assessment, charge.
costs. Efficiency-related million contract termination $XX renegotiation expenses other to and related included real $XX severance or rationalization corporate million and of estate
these the and ago the down expenses period. quarter Excluding to were relatively compared stable in year items,
We so and base continue continue business, businesses. to can to expense in our proactively we manage all and simplify our our streamline reinvest
Moving quality related our to credit XX. solid. Overall outlook and Slide remains
of For million quarter, charge-offs were the points $XX This quarter. in the average net prior $XX basis loans. fourth or compares XX to million
real Criticized outstandings this to points consumer and in XX by care movements estate, loans increased goods. period-end quarter, basis driven health
NPLs and criticized Over their historical loans potential loss believe continue move positioned current. Key still half loans nonperforming to are is in up off of of lows, well While our we content. terms
and losses credit Our the for for to reserve losses was $XX ] loans from of million [ for fourth period-end increased provision including X.XX%. million X.XX% credit build, $XXX quarter, to our allowance
basis capital rules, up ago continuing support common We XXXX. ended Tier position period. XX building points basis capital newly our with increased of the and ratio up X capital. client return significantly in prior the XX%, of on from relationship We and to quarter quarter remain points the XX. of Slide while from equity proposed to advance throughout year focused fourth Turning XX We the capital activity
our As targeted and X.X% our back above to such, range X% stock we do to be not term. of expect near stay expect in current the to buying
scenario shows XXXX, this this improved position The in side remain December slide rate FOMC rates forward expected another AOCI [ XX, current $X.X and The curve mark X X Key's scenarios: cuts in is AOCR levels. at where quarter. based of Our ] assumes on billion their by which go-forward reduction our right
would is the mark forward end to approximately $X.X billion the decline frame. which expected In provide XX% XX% by XXXX and capital scenario, the by the by AOCI curve of through approximately of that of end build time XXXX,
accrete and rate Said In by billion now rates flow still of of scenario, time. year-end $X.X we ] benefit levels, XX% XXXX. driven differently, remain achieved flat maturities, [ between cash the still flat current capital that we and to
provides XX XXXX. XXXX our to outlook Slide relative for
guidance regarding ranging uncertainty our assumes of interest and the a XXXX, Given reflects December rate eventual curve, forward timing XXX outputs XX Fed which scenarios, potential from extent from cuts in few over March, aligned rate initial to Fed's basis closely with in starting scenario the XXXX, course point which an assumes the cuts. X cut a dot of with currently cuts plots, more
decline balance. actions over down words, reductions X% average reflected X%, of to reflecting majority our we taken the XXXX. a have function our course and vast in loans expect is already be mostly other the the average We to year-end the are of loans In of in XXXX in
of by second to We decline expect XXXX, half of with some the at end half the compared period-end XXXX. expected of loans year the growth first be stable in end the the offset in relatively of XXXX to
to down average expect We to deposits flat X%. be
is XXXX exit be low on half up quarter more income down Net net mostly I'll interest annualized shortly. first to expected quarter lower income X% fourth the is rate. the relative to that our interest interest fourth provide net This to outlook in income our X%, to color digits, equates rate of to reflecting relative XXXX. exit single
activity upside capital expect X% be We market remain to and and income or noninterest with normalizes up GDP of better, trends levels constructive. market
should be XXXX at efficiency relatively the $X.X as actions. expense about we Noninterest benefits our from billion, stable realize
and At including to will tightly opportunities in including, cost most We the invest to our simplify and base, streamline continue organization. franchise, to will manage continue executing we time, our importantly, on additional our our same people. protect
our outpacing the first of the expansion moderate XXXX, operating half. comparisons in tough leverage by second half suggests mentioned, Chris the As driven in year, positive guidance meaningful in
remain the below to credit XX point well basis to continue still the XX For over-the-cycle of modestly we charge-offs range, to to points. net strong and range XX XX increase to to expect our quality year, basis
is Our guidance for rate our approximately XX%. GAAP tax
Slide XX. to Turning
to focus heightened Given of [indiscernible]. granularity wanted in provide little income investor on more past we the the this have our interest than a we net about topic, pacing
as opportunity the in mature, interest income off $XXX ultimate of net well-defined especially approximately at swaps unchanged of our remains half short-term with largely XXXX. the treasuries back our million. and familiar you're tailwind Now roll impact The
each the amount quarter roll in the increases off in reminder, full culminating of as more quarter a the treasuries and the mature, benefit of first As XXXX. swaps
all quarter-by-quarter, set of XXXX. first quarter since builds books came initial of in off the So swaps this the
XXXX, are we're turn the we're Since journey. view. we this the of As now point page X we nearing on full quarters, a X-part halfway through sharing
of on for XXXX, XXXX. income. of the First, progression are was in through the realized. million In already approximately we've left next $XX gray, light bars quarters X total, the X The benefit additional that showed
quarter. builds the positions. each from in following additional to accrues represents versus As 'XX, bar $XX we the other you expect the income quarter. realize interest from quarter's XQ value the tranche XQ these Each words, of net value and 'XX in see, for In million
approximately sum previously we quarterly benefit estimate the than of approximately increase bars. total, represent For mentioned, $XXX which in was of more million XXXX, received to benefit XXXX, X in million $XXX over the the million. $XX be as is This which, an the would
bar to discussion the currently shows approximately the been essentially of final last 'XX at or year which XXXX the right, the is to quarter, The rolling million the the incremental this treasury main estimated this has the This and focus annualized off. for and entire first benefit, so, XQ Again, quarter over $XXX an short-term number. is represents portfolios million. swap value $XXX of approximately far from
it's remember component reinvestment represents is an net our to the fixed opportunity outlook. interest one rate of peers. this believe relative our swaps income just Key and also drives to But that that these outsized We for assets important
deposit growth well outlook, NII balances assumptions seasonal factors. inputs betas, we loan On Slide as our mix, XX, as provide key other and driving and
from quarter. first expect the in From our and second maturities treasury expect billion to the X% up pace meaningfully Putting year, grow start swaps fourth aggregate $X as this in to there, pick down and the NII of be quarter we X% accelerate in we to to per half the quarter. all together, U.S. of nearly
From of to interest income the billion. of $X We exit expect XXXX, to expect XXXX. would range grow north of year the strong to end we net quarter put quarter by XXXX. to will also us a on fourth XXXX plus This we to the quarterly our meaningfully trajectory as fourth X.XX% margin enter interest the and XX% of net improve the X.XX% the
With that, of for the Operator? our portion operator to back Q&A I will call. now turn the the instructions for call
