“We expect our fourth quarter net charge-off ratio to remain relatively stable compared with the third quarter level.”

In context

“f 3.20%. Slide 8 highlights our credit quality performance. Asset quality metrics continued to develop in-line with our expectations and reflected ongoing macroeconomic stability. This quarter, we saw a slight reduction in our exposure to commercial real estate office portfolio, which remained appropriately reserved at 10.8%. Late-stage delinquencies and non-performing asset metrics were relatively flat on a linked quarter basis, and the ratio of non-performing assets to loans and other real estate was unchanged at 0.49% linked quarter versus 0.35% year-over-year. Our net charge-off ratio of 0.60% increased 2 basis points from a second quarter level of 0.58%, in line with our expectations. At September 30th, our allowance for credit losses totaled $7.9 billion or 2.1% of period-end loans. We expect our fourth quarter net charge-off ratio to remain relatively stable compared with the third quarter level. In the near-term, we expect changes to the loan loss reserve to be driven primarily by loan balance growth and mix. Slide 9 provides a more detailed earnings summary. In the third quarter, we reported $1.03 per diluted share, which included $119 million of net losses or $189 million after tax on-sales and securities rebalancing actions within our investment portfolio. These actions were largely offset by tax favorability in the quarter, primarily due to settlements in various tax jurisdictions. Turning to Slide 10, net interest income on a taxable equivalent basis totaled approximately $4.17 billion, an increase of 2.8% linked quarter. Our net interest margin increased 7 basis points to 2.74%. Both net interest income and net interest margin growth this quarter benefited from a combinatio”