Michael, with upon, issue. to results million company's to factors, the card our In the Slide year with we impacting decision misclassification $XXX Capital morning, remediation start reserve remediation One. was summary of pending good the increase net and reserve $XXX from increase million, regulatory efforts, The was X. everyone. a our you, financial Thank related I'll with experience to merger on date based our which XX% the and among down to income dialogue reported our quarter, for results other quarter the operating prior was
Michael we management objectives believe As advance and resolution and our is risk aligned of help with significantly this compliance indicated, will issue. this the action
that mid financial in margin, highlights loan with quarter core consumer XXXX. strong. for performance from a Our net interest strong double-digit include losses remains and peak growth resilient will to view expansion the Key plateau growth, and credit consistent revenue our late performance deposit
card misclassification have increase, income strong remediation of an a $XXX to XXXX. start share $X.XX under EPS of per reported figures the Excluding efficiency net indicate we about and reserve ratio million, would approximately XX%. These
review us details X. on Let the beginning Slide
growth. year XX points and compared card clubs. is to the and supermarkets, categories sequential about points decline quarter gas the rate a year from costs. year-over-year category, yields down and basis margin up points across now promotional sequentially. everyday basis, lower prior Our which moderation basis contribution peak due continues increased but XX rate quarter-over-quarter from receivables about net net a XXXX higher growth at above declined be X% prior to payment interest first Receivable loan of the to levels. a were from the the account wholesale basis expanding lower rate from The payment sales partially card XX in and quarter. slowed XX.XX%, funding in Discover points new occurring quarter XXXX, XX% year Sales were X largest the from offset with strong.
Card includes slowing prior by is quarter On down and ended the payment mix basis its balance
expect households, While in are which we we general, new the continue impacted effects among in add by we lower members Personal negative rates inflation.
Based particularly strength be were XX%, flat and most loans seeing trends by to period, card of this in up lower-income originations sales spend accounts, on to the continued are prior year. cumulative the versus driven payment to slightly less, year.
flat consumers. with primarily strong debt made first of uptake are make offering loans rates seeing quarter XX% directly for interest consolidation for our were originations to creditors.
Student Approximately in were can and We disbursements on more as higher our consolidation some debt appealing personal card year-over-year. utilized loans
we interest. for new on several sales thousand buyers the loans accepting in an applications student formally We February potential process X. announced, initial provided As of stopped previously indication launched and mid-March have
anticipate sequentially. year-over-year demand up date a We third and strong closing continue quarter. in and target the XX% late quarter X% or still to deposits were Average fourth
period. balances in the direct-to-consumer billion grew $X Our
We NIM have our started strong our decrease the the products of part industry our rates. on pricing ahead quarter. leading cycle moves to down in to is the potential deposit consistent in pricing action of with this any performance reference practice the contributed on This in and of
at revenue, primarily Noninterest to Looking as This PULSE million loan increased driven by from our interchange fee an year-over-year. income XX%. XX% and healthy $XXX increased discount increase debit at Slide a and transaction business. billion revenue $XX.X other PULSE by grow in processing volume income was continued higher clip X. higher net on or revenue or
of Our rewards XXX rate points decrease prior in year points period, the versus was basis a X the basis quarter.
to active comment management briefly and the the lower match CFPB slowing new from reflects of expenses, cash back categories. growth X% account decline late The would reviewing proposal. Prior like fee to I our on
continue we be estimate around on the If the $XXX a to annualized or X% basis, revenues. the process legal We proposal. pretax monitor reduction closely were an million approximately rule to of implemented, around of
XX% operating Moving $XXX on were expenses expenses or Total Slide year-over-year. to up X. million
growth mentioned, our was the of this our expenses X% increase increased predominant to year-over-year. As Absent this, the would reserve. have remediation driver
business.
Professional Looking expenses. wind due to $XX processing an XX%, in resources by our student risk down investments higher business million management or to to million initiatives, increased increase driven fees were of Information compliance related and technology organizational investments. recovery due increased merger-related severance Compensation and changes loan costs up X% $XX or expense continued at fees our the including in major technology and categories.
compliance for with range management million risk expenses upside $XXX an year the in expectation remains for and Our costs, the excluding bias. remediation-related
performance with Both in tightening is improving perspective, remain day a performing In our to thresholds. first vintages line return X. XX has during our contemplated incremental Card, guidance. down vintage. higher and some charge-off our relatively year credit XXXX X formation our as and prior net full quarter. basis which on the profitable points we been delinquency as the We season. vintages Total from points was delinquency XXX Moving our quarter, growth vintage Slide the performance vintages From from above in quarter. executed for higher versus new quarter. XX-plus rate The net card more the XXXX points charge-offs prior X.XX%, basis will year recent basis were XXX points net were basis anticipated, the loan year charge-offs up than prior basis influence prior than year.
Personal XX and the points account prior X.XX%, This up the
We late before in near XXXX. this this beginning trend higher term in or expect into losses plateauing year product to the
Slide Turning credit losses XX. to on the allowance for
basis quarter points and from our seasonal Our X.XX%. balances The to increase credit primarily reserve reserve X reserve balances rate transactor was the quarter. million driven declined by prior the rate increased in reduction of $XX by the
likely company near a portfolio late unexpected believe Given peak environment to and plateau in significant our no is macroeconomic in changes mid expectation levels, rate we XXXX, or performance. for total peak at and assuming to the stable reserve credit losses
Slide Looking at XX.
points were We common common and a XX.X%, $X.XX on XX of Slide of in CECL core from earnings by per expenses XX. share equity the declared period quarterly impacts offset cash sequentially. down X stock.
Concluding generation. in The the dividend was phase-in for basis increase the lower Tier Our receivables
the following made updates have our XXXX We to outlook.
are view a growth rates, reflects sales digits. modest growth We to loan negative in our primarily contribution accounts. expectation from new of to our flat payment further single year decline the low up slightly of expectations our and this This increasing offsetting
X first, are cuts.
And curve This rates. deposit forecast versus have reflects proactive by X an of of net margin rate to year interest cuts XX%. range increasing been now prior our We the our our in XX.X% lowering we was second, change factors: forward to X this expectation driven
think further opportunities deposit still merger be core related deposit costs expenses. year.
We about operating XX% excluding mid-single cumulative be now course expect this of beta digits, the to and will our over manage costs up and Our is expenses we to there card misclassification our
with trends substantially first further the probability operating in are core to took we the actions remediation and our expense reserve. of quarter the in line the believe expectations Our have we de-risked increases
largely based X.X%, current to X.X% to delinquency range charge-off trends. on net our tightening are We
remains case base of lower Our end range. the at the
underscores Finally, results to move closing agreement, our repurchases have we not the our merger. turn dividend. share given steady of as generate our merger operator. to our we and I'll the organization This financial planned call To compliance solid back performance suspended consummating our the increase we and through and over continue resolving items summarize, stewardship remarks. towards concludes the agreed to
