Thank good you, and Bill, morning, everyone.
exceeding both margin amortization interest core in income guidance Net higher points. portfolio. and X basis days purchase loan impact to margin interest our Slide premium margin the interest flat XX. two the Turning primarily benefits as improvement yields. accretion net by X% core increased lower fewer accounting lower was sequentially in securities and of net the decreased offset was growth The driven points by interest of Reported securities solid X basis net and
balanced maintaining some protection has Slide if interest positioned being to Truist managing decline. to XX. interest rates in Moving well risk, higher intentionally near-term while from rate benefit approach maintained level when a and of downside rates the to
rate end point We X.X%, continue to of NII asset estimate increase be and X.X%. would increase a increase basis sensitivity XXX asset by ramp a curve. from is XXX sensitive the point our basis XX% of Approximately the short reported would NII by shock
While tracking below betas thus deposit early, modeled are far expectations.
trends market Investment conditions will margins of pressured Residential when Fees and X% challenging X.X% or and were market the is but to Adjusted healthy, the banking expected declined down XX% more conditions rates X% higher M&A, income pipelines increased growth reduced the high mortgage $XX and time to hedging due acquisition. which linked the insurance to declined realized. first given and income, quarter our production quarter, $XXX in curve. due equity. conditions by of costs driven seasonal and gains banking as our fee were XX the and determine as not declined other our entirely flatter year-over-year by income. Moving to was to primarily month by fee conversion. interest due sale income charges as Part activity strong make as X% declined of excluding last February and waivers adjustment but and up Other Kensington income Vanguard an large XX. for of around derivative side. or look fees of sequentially $XX service on million and a impacted and million trading collectively Slide declined almost in a and which yield higher on table Investment up and since Visa-related benefits how SBIC to as sequentially leverage on primarily Slide primarily partially million deposits $XX at offset of changes XX% other offset valuation revenue of volatile plan organic reflecting yield, driven included We the is refinance $XX DK finance range bottom we the result These clear. payment more was below seasonality. market gain income, eroded by guidance and Servicing million nonqualified negative client-friendly instituted higher weaker-than-expected million both slowing items X% also pipeline much income.
X% We in that drivers our behind losses. and to X% to operational Adjusted quarter primarily at can Slide adjusted costs $XXX experiencing efforts. and incentive were event integration seasonally improving run and with activity, we million include same recent personnel categories the our nonqualified first costs branch continued these losses the $X.X and personnel by we merger to of merger. losses have own us, plan, and we expenses. on changes partially decreased including new continue higher with stable as our incremental associated lower offset marketing and of banks along reductions the offset decrease of well steadily compensation as in levels the FICA disciplined expense expenses partially fraud in our billion, of have quarter Truist expenses in expenses. We conversion increased The the in center costs to building Overall, reflecting The operating were decline remain of higher lower related major to offset merger Compared our $XXX by to sequentially, our Reported to impairments and expense expense expenses brand. costs, management. and highly XXXX, costs start client decommissioning of costs reflecting time. XX. guidance enhance expenses exceeding and increased and the investments is was to experience million XXX(k) operational from fees integrations. financial decisions the client in with higher merger-related The up were significant connected were the excited Turning costs by the and closings in to quarters are experience. data decreased cost as focused saves last as events, incurred as reduce rate FTE our software reducing both conjunction occupancy addition The operational marketing, were signs,
XX. Slide to Moving
reflecting excellent, risk prudent diverse culture, economic conditions. remains portfolio quality Asset and our favorable
resulting first basis X.XX%, benefit Our the unchanged provision million quarter of ratio a The to for decreased points. was net charge-off in at ratio ALLL XX first quarter. $XX
Our but Ukraine associated subprime take origination also Including events. levels in consumer inflation, and geopolitical rising into conditions Russia indirect to RAC, minimal or Continuing no reflect Truist is has our direct credit account other Slide levels Capital strong. liquidity current exposure with on XX. portfolios. and to the reserve or exposure. X% remain the uncertainty and credit rates less exposure at
does later common equity. first are to April the plan Reserve to Because and points XX capital mitigate impacts sharing our and details Vanguard portfolio more Our maturity acquisitions a In Category the declined this in capital institution, CETX regulatory and quarter. certain to of submitted ratio CECL basis simply held to order during deployments not phase-in. Federal forward approximately the capital, the look to of securities and assets We the early XX% merchant it service we AOCI risk risk-weighted to a related volatility, transferred we in relationships, approximately ACI result summer. impact X Kensington as of growth tangible
first about future three details earnings transactions profitability. to This Moving to Slide in additional we the our and XX. enhance provides quarter slide completed
in larger transactions our accretive be Vanguard annually acquisition and title presence additional revenue capabilities by expands margin Vanguard commercial year will anticipate to augments and IRM $XXX also Kensington million opportunities will more insurance, significant CRE. significantly complex and in two. EBITDA given our presence provide our in We Kensington First, in add insurance
we interest. million gain from Second, share resulted The had terminated marking stake $XX Truist non-controlling which in to revenue transaction a in a alliance value. our merchant fair
end relationships position when acquired of those more This control this we significant will portion addition, experience to the serving clients. alliance. In us of from client
basis yield that enhance approximately cash, believe Last, annually. generate $X securities payback. in the of approximately by resulting acquisition XXX also PPNR additional a of two-year our will $XX we repositioned We billion million to points
Moving to Slide XX.
successfully in February. core we completed large bank mentioned, our conversion Bill As
are just also We of technology, One serve clients effectively and operate. Truist, which not our simpler now digital to and our terms but to company culturally, in allows branding, more us make
excellence, in As we executional half savings. data the applications to business 'XX happen will of of decommission our of over we integration realizing XXX maintain shift that on focus as our will remaining focus cost our and we from Much centers. six three second
and significant, Our are efforts final enhancing complex complete, and client towards decommissioning we teammate technology will teams track. and our experience. on our are integration shift With further largely more
XX. Turning to Slide
made our buckets billion $X.X cost-save across the net in are to excellent saves. commitment in progress achieve five cost and closing have We on
Third-party down from XX.X% reduction spend XX%. is our baseline of levels exceeding targeted
closed branch we quarter, branch finished efforts now network to commitment merger-related course XXXX. have This close will reduction our branches over normal end optimization. total the first quarter by exceeding of more the of the XXX to and branches shift over XXX We
reduction consolidation our closures. through our occupancy strategically non-branch reducing facility achieved targeted costs space, and We also have in
working. However, we in we still have which more opportunities are
linked and down quarter XX% the merger. are FTEs since X% average acquisitions Excluding
PPP January, is tilted to efforts. In X% higher in you two represents short-term voluntary revenue interest new in XXXX. more This the X% rates, the from for revenue year cost the income growth core from adjusted partially the growth outlook saving primarily we quarter. mix supporting decline and to the and and and when X% our our will mortgage now ongoing expect full guidance Our 'XX now Relative offset X% now towards XXXX, weaker guidance significant growth next to net of further exclude given revenue program will conclude investment fees, purchase of for separation retirement residential provide banking. second in accounting. interest for I outlook quarters, by
will XXXX the charges and Banking. based As decline of and of NII introduction net Truist elimination increase margin we a interest should forward our bottomed expect recall, service first in in overdraft-related year you One curve. throughout quarter mid-single-digit in given and on the certain the fees
as economic loan But expect in to continue digits. uncertainty. of said, We acknowledge we ex-PPP higher growth mid-single the point-to-point Bill levels
largely We Kensington increase impact will of be at of the the end Vanguard our X% to high due expense X% to noninterest adjusted acquisition. of
we for our none less The peak was for of now first in this year quarter and the merger-related rest $XXX than and projecting are million the costs, XXXX.
charge-off XXXX, basis and are XX to operating We GAAP interest for though positive ratio We to still targeting adjusted the assumptions still basis and is be dependent somewhat market normalization this XX on our given on expect a in points leverage throughout rates in conditions. the net year.
adjusted second the possible upside quarter, quarter we grow PPNR first into Looking with level. the to from digit expect high single
rebound As income net the this deposit assumes curve and outlook rates of controlled in interest the higher interest fee potential betas. a banking, forward and insurance result, seasonality income investment and given longer much in
interest net expected XX basis We accounting to interest X benefits result slowing, a expect the rates. increase as to in XX from lower higher from increase prepayment margin environment hike only core basis margin point hike points due May. is GAAP is a purchase basis approximately given to accretion as and March points to projected X X the to net of
Now it to back to conclude. I'll Bill turn
