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| Statement |
|---|
| This moderation in the mix shift from noninterest-bearing to interest-bearing deposits was slightly better than our expectations and helped increase our NII guidance that I will provide at the end of my comments |
| We were pleased with our third quarter results |
| Operating earnings of $0.43 per share were solid |
| Other categories within commercial fees were solid as both merchant and card revenues have exceeded our expectations year-to-date |
| Our net interest margin was stable, and we maintained solid asset quality |
| We generated strong results in Wealth Management that helped offset a decline in capital markets income this quarter |
| Overall, we remain pleased with our credit metrics |
| So we benefit and have cost offsets with that as well |
| In addition to our solid operating results, we repurchased 2.2 million shares in the third quarter and continue to monitor deployment - capital deployment opportunities |
| We were pleased that we held constant from 2Q to 3Q |
| We expect at this point to see the margin bottom out sometime in the middle of 2024 and then I think back to your question around CDs, yes, we've been - we do feel our CD engine is pretty strong |
| We are being disciplined around credit and pricing and it's an opportunity for us from a high-quality customer standpoint, but also to get the pricing credit parameters that that we need in this environment |
| We're confident in that |
| It's - customers we know well, and performance has been steady |
| We've seen steady growth in wealth fees for, I think, three quarters now |
| Consumer Banking fees were up modestly for the quarter, with pickups in credit card revenues and overdraft fees |
| Our loan yields expanded 20 basis points during the period, increasing to 5.72% versus 5.52% last quarter |
| Our credit quality metrics remained stable |
| We saw deposit and loan growth |
| And hopefully, we do end up a little bit better than that |
| Mortgage banking revenues picked up linked quarter as an increase in volume offset a slight decrease in gain on sale spreads in the third quarter |
| First, on Slide 12, as of September 30, we maintained solid cushions over the regulatory minimums for all of our regulatory capital ratios |
| Last one for me is, broadly speaking, it looked like credit trends were benign, very solid |
| So we do benefit in some regards, and then we would have an offset |
| We also recently opened a loan production office in Norfolk, Virginia in order to further accelerate growth in that market |
| We've kept our commercial real estate team intact, and we are getting opportunities that may not have been available to us |
| Our wealth management revenues were $19.4 million, up from $18.7 million for the second quarter |
| So it is an opportunity for us, and that's how we're looking at it |
| Total deposits grew $215 million during the quarter |
| It does create opportunities for us |
| Statement |
|---|
| Our pre-provision net revenue was down 4% as fee income on an operating basis was down linked quarter |
| It is a challenged overall environment |
| While mortgage lending remained the majority of our consumer loan increase, the third quarter growth rate slowed considerably from prior quarters due to higher loan pricing and overall demand |
| As we anticipated, loan growth slowed in the third quarter to $133 million, or 2.5% annualized |
| Reduced loan originations, tempered capital markets revenue in our customer swaps business coming off of a very strong second quarter |
| We think that we're going to continue to see our margin drift down |
| Office continues to have stress |
| Application volumes, however, were down 6% year-over-year as rate increases and low housing inventories influenced applications, originations and overall loan sale volumes |
| Consumer loan growth also moderated to $86 million or 4.7% during the quarter |
| Noninterest-bearing balances declined $290 million during the period, which was down from $538 million decline in the second quarter and a $603 million decline back in the first quarter |
| Commercial banking fees declined to $19.7 million during the quarter |
| However, that growth continues to moderate as expected |
| Our tangible common equity ratio was 6.8% at quarter end, down from the prior quarter due to higher long-term interest rates and the related impact on OCI |
| But Frank, we anticipate that, that pace of shift will continue to decline |
| Our nonperforming loans decreased $6.3 million during the quarter, which led to our NPL loans ratio decreasing to 67 basis points at September 30 versus 70 basis points at June 30 |
| Just with the outlook that we have around maybe a little slower growth, margins more challenged from where we were in the last couple of quarters, really focused on bringing that true expense level down |
| In the month of September, our margin was 3.38, so to give you an idea that we will expect to see - and again, with some of those public funds outflows and replacing some of that with some higher cost borrowings in the fourth quarter, I'd see that number drift down a little bit |
| Total loan growth moderated this quarter, growing $133 million or 2.5% annualized |
| Our investment portfolio declined approximately $200 million during the quarter, closing at $3.7 billion |
| How do we think about, I guess, finishing it, additional buybacks, other uses of capital given the - I would say, still uncertain economic environment |
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