Gross investment servicing mandates were $474 billion of AUC/A in the first quarter of 2024. The company expects the conversion will occur over the coming 24 months.

Software and processing fees revenue increased 25% YoY, primarily driven by higher front office software and data revenue associated with CRD.

Management fees increased 12% YoY, as higher average market levels and net inflows from prior periods were partially offset by the impact of a previously disclosed strategic ETF product suite repricing initiative.

Total headcount increased 7% YoY, primarily reflecting the consolidation of one of our operations joint ventures in India in the fourth quarter of 2023. On April 1, 2024, we completed the consolidation of our second operations joint venture in India, which will increase headcount in the second quarter of 2024.

In the first quarter of 2024, the company returned approximately $308 million to shareholders in the form of common share repurchases and common stock dividends.

Total expenses for Investment Servicing decreased 1% in the first quarter of 2024, compared to the same period of 2023, as continued business investments were more than offset by productivity and optimization savings.

In the first quarter of 2024, we recorded a $27 million provision for credit losses, primarily reflecting an increase in loan loss reserves associated with certain commercial real estate loans.

Our businesses may be adversely affected by increased and conflicting political and regulatory scrutiny of asset management stewardship and corporate sustainability or Environmental, Social and Governance (ESG) practices.

We could be adversely affected by political, geopolitical, economic and market conditions, including the Israel-Hamas war and hostilities between Iran and Israel, ongoing war in Ukraine, major political elections globally, actions taken by central banks to address inflationary and growth pressures, monetary policy tightening, periods of significant volatility in valuations and liquidity or other disruptions in the markets.

The industry in which we operate has historically faced pricing pressure, and our servicing fee revenues are also affected by such pressures today.

As previously disclosed, in early 2021, due to a decision to diversify providers, one of our large asset servicing clients is moving a significant portion of its ETF assets currently with State Street to one or more other providers.

Average other short-term borrowings increased due to increased wholesale funding. The increase is driven by our effort to diversify our funding sources through relatively low-cost channels, with initial maturities of twelve months, to further support business growth.

Total expenses increased 6% in the first quarter of 2024, compared to the same period of 2023, with approximately 5% points of that increase due to the increase to the FDIC special assessment, and the remainder driven by continued business investments, largely offset by productivity savings.

Occupancy expenses increased 10% in the first quarter of 2024 compared to the same period of 2023, mainly associated with consolidating an operations joint venture in India and other real estate costs, partially offset by footprint optimization.

Total headcount increased 7% as of March 31, 2024 compared to March 31, 2023, primarily reflecting the consolidation of one of our operations joint ventures in India in the fourth quarter of 2023. On April 1, 2024, we completed the consolidation of our second operations joint venture in India, which will increase headcount in the second quarter of 2024.

Software and processing fees revenue increased 25% YoY, primarily driven by higher front office software and data revenue associated with CRD.

Front office software and data revenue, which primarily includes revenue from CRD, Alpha Data Platform and Alpha Data Services, increased 32% in the first quarter of 2024 compared to the same period of 2023, primarily due to higher software-enabled and professional services revenue reflecting continued SaaS implementations and conversions.

Information systems and communications expenses increased 4% in the first quarter of 2024 compared to the same period of 2023, reflecting higher technology and infrastructure investments, partially offset by optimization savings and vendor savings.

In the first quarter of 2024, we acquired an aggregate of 1.4 million shares of common stock at an average per share cost of $73.24 and an aggregate cost of approximately $100 million.

On January 31, 2024, we issued 1.5 million depositary shares, each representing 1/100th ownership interest in shares of fixed-to-floating rate, non-cumulative perpetual preferred stock, Series I, without par value per share.

On March 15, 2024, we redeemed an aggregate $1.0 billion, or all 7,500 outstanding shares, of our non-cumulative perpetual preferred stock, Series D, and all 2,500 of the outstanding shares of our noncumulative perpetual preferred stock, Series F.

Our businesses may be adversely affected by increased and conflicting political and regulatory scrutiny of asset management stewardship and corporate sustainability or Environmental, Social and Governance (ESG) practices.

The impacts of climate change, and regulatory responses, and disclosure requirements related to such risks, could adversely affect us.

We could be adversely affected by political, geopolitical, economic and market conditions, including, for example, as a result of liquidity or capital deficiencies (actual or perceived) by other financial institutions and related market and government actions, the Israel-Hamas war and hostilities between Iran and Israel, ongoing war in Ukraine, major political elections globally, actions taken by central banks to address inflationary and growth pressures, monetary policy tightening.

We face extensive and changing government regulation and supervision in the jurisdictions in which we operate, which may increase our costs and compliance risks and may affect our business activities and strategies.