Average commercial and industrial loans increased by $4.3 billion YoY, indicating continued strength in this segment. However, average commercial real estate loans decreased by $2.5 billion YoY.

The Company utilizes interest rate swap agreements to modify the repricing characteristics of earning assets and interest-bearing liabilities. At March 31, 2024, the notional amount of interest rate swap agreements in effect was $19.5 billion.

The efficiency ratio, which measures noninterest operating expenses as a percentage of net revenue, increased from 55.5% to 60.8% YoY. This indicates a decrease in operational efficiency.

The Company recorded an expense of $29 million in the Consolidated Statement of Income in the first quarter of 2024 in addition to the $197 million recorded in the fourth quarter of 2023, resulting in an accrued liability of $226 million at March 31, 2024

The elevated interest rate environment has led to higher costs of interest-bearing liabilities that have modestly outpaced increased yields on the Company's earning assets, impacting net interest income and net interest margin.

The provision for credit losses increased due to declines in commercial real estate values and higher interest rates contributing to a deterioration in the performance of loans to commercial borrowers.

The Company has experienced increased competition for customer deposits in the marketplace and a mix shift in those deposits toward higher cost interest-bearing products.

Nonpersonnel expenses increased $12 million YoY, indicating potential challenges in controlling overhead costs. This was partially offset by lower sub-advisory fees and a decline in advertising and marketing costs.

There were no shares of common stock repurchased in the fourth quarter of 2023 and the first quarter of 2024.

The Company's estimate of expected credit losses is based on economic forecasts, including unemployment rate, GDP growth, and commercial and residential real estate price indices.