We earned $5.1 billion or $1.17 per common share in the third quarter.
These results included a $1.7 billion decrease in the allowance for credit losses as credit quality continued to improve.
Expenses continue to decline, reflecting progress on our efficiency initiatives and included $250 million associated with the September OCC enforcement action.
While lower than the peak in March, our consumer customers' median deposit balances continued to remain above pre-pandemic levels, up 48% for customers who received federal stimulus and 40 -- I'm sorry, up 48% for customers who received federal stimulus and 40% higher for those who did not receive federal aid.
Weekly debit card spend during the third quarter was up every week compared to 2019 and in the week ending October 1 was up 14% compared to 2020 and 26% compared to 2019.
Areas hardest hit by the pandemic have recovered, including travel, up 2%; entertainment, up 39%; and restaurant spending, up 20% during the week ending October 1 compared with 2019.
Consumer credit card spending activity continued to increase, up 18% in the third quarter compared to 2019 and 24% compared to 2020.
During the week ended October 1, travel-related spending, which was hardest hit during the pandemic, was up significantly from 2020 but remains the only category that is not yet fully rebounded to 2019 levels, still down 8% compared to 2019.
15 of 18 operating committee members are now new to their roles.
We've also been making significant enhancements to our payments capabilities and are seeing that momentum pull through on our customers' Zelle usage, with Zelle users increasing 24%, transactions up 50%, and volumes are up 56% from a year ago.
Clear Access, our no-fee overdraft checking product now has over 1 million outstanding customer accounts.
This feature has helped over 1.3 million customers avoid overdraft-related fees on 2.5 million transactions in the third quarter.
We've now donated $305 million in support of small business recovery, including 215 CDFIs, which, in turn, is expected to help nearly 150,000 small business owners maintain more than 250,000 jobs.
Additionally, in the third quarter, we launched Connect to More, a resource hub for women-owned businesses and a mentoring program partnering with Nasdaq Entrepreneurial Center to empower 500 women-owned businesses.
We committed to invest $5 million through the NeighborhoodLIFT program to help more than 300 low- and moderate-income residents in Philadelphia with home down payment assistance.
Consumers' financial condition remains strong with leverage at its lowest level in 45 years and the debt burden below its long-term average.
We remain on target to achieve a sustainable 10% ROTCE, subject to the same assumptions we've discussed in the past on a run-rate basis at some point next year, and we'll then discuss our plan to continue to increase returns.
Net income for the quarter was $5.1 billion or $1.17 per common share.
Our results included a $1.7 billion decrease in the allowance for credit losses.
And as Charlie highlighted, the third quarter included $250 million in operating losses associated with the September OCC enforcement action.
Within that, equity gains declined from the second quarter but increased $220 million from a year ago, predominantly due to our affiliated venture capital and private equity businesses.
Our effective income tax rate in the third quarter was 22.9%.
Our CET1 ratio declined to 11.6% in the third quarter as we repurchased $5.3 billion of common stock.
As a reminder, our regulatory minimum will be 9.1% in the first quarter of 2022, reflecting a lower GSIB capital surcharge.
Additionally, under the stress capital buffer framework, we have flexibility to increase capital distributions and if possible, we will be able to repurchase more than the $18 billion included in our capital plan over the four-quarter period, depending on market conditions and other risk factors, including COVID-related risks.
Our net loan charge-off ratio was 12 basis points in the quarter.
Commercial credit performance continued to improve, and net loan charge-offs declined $42 million from the second quarter to 3 basis points.
Net loan charge-offs declined $80 million from the second quarter to 23 basis points.
Nonperforming assets declined $321 million or 4% from the second quarter, driven by lower commercial nonaccruals, with declines across all asset types.
Total period end of loans grew for the first time since the first quarter of 2020 and were up $10.5 billion from the second quarter with growth in commercial and industrial loans, auto, other consumer, credit card, and commercial real estate.
Average deposits increased $51.9 billion or 4% from a year ago with growth in our consumer businesses and commercial banking, partially offset by continued declines in corporate and investment banking and corporate treasury, reflecting targeted actions to manage under the asset cap.
Net interest income grew $109 million or 1% from the second quarter and was down $470 million or 5% from a year ago.
We had $20 billion of loans we purchased out of mortgage-backed securities or EPBOs at the end of the third quarter, down $4 billion from the second quarter.
At the end of the third quarter, we also had $4.7 billion of PPP loans outstanding, and we expect the balances to steadily decline over the next several quarters and to be under $1 billion by the end of next year.
We continue to expect net interest income to be near the bottom of our initial guidance range of flat to down 4% from the annualized fourth-quarter 2020 level of $36.8 billion for the full year.
Noninterest expense declined 13% from a year ago.
During the first nine months of this year, these initiatives have helped to drive a 16% decline in professional and outside services expense by reducing our spend on consultants and contractors, an 8% reduction in occupancy costs by reducing the number of locations, including branches and offices.
Occupancy costs have also declined from lower COVID-19 related costs and a 5% decline in salaries expense by eliminating management layers and increasing expansion controls across the organization and optimizing branch staffing.
The pandemic accelerated customer migration to digital, which continue with mobile log-ons up 14% in the third quarter from a year ago.
While teller transactions were flat from a year ago, they were over 30% lower than pre-pandemic levels as transactions have migrated ATMs and mobile.
Over the past year, we've reduced our number of branches by 433 or 8% and lowered headcount and branch banking by 23%.
However, by executing on efficiency initiatives, nonrevenue-related expenses in the third quarter declined 6% from a year ago, and non-advisor headcount was down 10% from a year ago.
With three quarters of actual results already, our current outlook for 2021 expenses, excluding restructuring charges and the cost of business exits, is approximately $53.5 billion.
Note that we had $193 million of restructuring charges and cost of business exits during the first nine months of the year.
As mentioned, the outlook accounts for the fact that we expect full-year operating losses to be approximately $250 million higher than our assumptions at the beginning of the year.
This includes approximately $1 billion of operating losses incurred during the first nine months of the year, and our outlook assumes $250 million of operating losses in the fourth quarter.
Our current outlook also assumes revenue-related compensation will be approximately $1 billion this year, which is higher than the $500 million we assumed at the beginning of the year.
Consumer and small business banking revenue increased 2% from a year ago, primarily due to an increase in consumer activity, including higher debit card transactions and lower COVID-related fee waivers.
Home Lending revenue declined 20% from a year ago, primarily due to a decline in mortgage banking income, driven by lower gain-on-sale margins, origination volumes, and servicing fees.
Credit card revenue was up 4% from a year ago, driven by increased spending and lower customer accommodations and fee waivers in response to the pandemic.
Auto revenue increased 10% from a year ago on higher loan balances.
Our mortgage originations declined 2% from the second quarter with correspondent originations growing 2%, which was more than offset by a 5% decline in retail.
The competitive environment has remained relatively stable, and we've had our second consecutive quarter of record originations with volume up 70% from a year ago.
Transactions were relatively stable from the second quarter and up 11% from a year ago, with increases across nearly all categories.
We had strong growth in new credit card accounts up 63% from the second quarter, driven by the launch of our new Active Cash Card.
Credit card point-of-sale purchase volume was up 24% from a year ago and 4% from the second quarter.
While payment rates remain high, average balances grew 3% from the second quarter, the first-time balances have grown since the fourth quarter of 2020.
Middle-market banking revenue declined 3% from a year ago, primarily due to lower loan balances and lower interest rates, which were partially offset by higher deposit balances and deposit-related fees.
Asset-based lending and leasing revenue declined 12% from a year ago, driven by lower loan balances and lower lease income.
Noninterest expense declined 14% from a year ago, primarily driven by lower salaries and consulting expense due to efficiency initiatives, as well as lower lease expense.
However, there was some increase in demand late in the quarter and period-end balances increased $1.6 billion or 1% from the second quarter.
In banking, total revenue increased 12% from a year ago.
Commercial real estate revenue grew 10% from a year ago, driven by higher commercial servicing income, loan balances and capital markets results in stronger commercial gain-on-sale volumes and margins and higher underwriting fees.
Markets revenue declined 15% from a year ago, driven by lower trading activity across most asset classes, primarily due to market conditions.
Noninterest expense declined 10% from a year ago, primarily driven by reduced operations expense due to efficiency initiatives.
Wealth and investment management revenue on Slide 13 grew 10% from a year ago.
Client assets increased 13% from a year ago, primarily driven by higher market valuations.
Average deposits were up 4% from a year ago, and average loans increased 5% from a year ago, driven by continued momentum in securities-based lending.
The decline in revenue from the second quarter was primarily driven by lower equity gains from our affiliated venture capital and private equity businesses, and expenses included the $250 million operating loss associated with the OCC enforcement action in September.

Summary:
We earned $5.1 billion or $1.17 per common share in the third quarter.
We committed to invest $5 million through the NeighborhoodLIFT program to help more than 300 low- and moderate-income residents in Philadelphia with home down payment assistance.
Net income for the quarter was $5.1 billion or $1.17 per common share.
Our results included a $1.7 billion decrease in the allowance for credit losses.
Net interest income grew $109 million or 1% from the second quarter and was down $470 million or 5% from a year ago.
Occupancy costs have also declined from lower COVID-19 related costs and a 5% decline in salaries expense by eliminating management layers and increasing expansion controls across the organization and optimizing branch staffing.
Our mortgage originations declined 2% from the second quarter with correspondent originations growing 2%, which was more than offset by a 5% decline in retail.
Average deposits were up 4% from a year ago, and average loans increased 5% from a year ago, driven by continued momentum in securities-based lending.