For the full year, adjusted expenses were down 4%, compared to 2013, and a full 14% compared to 2011. As we look to the first quarter, we currently anticipate personnel expenses to increase by approximately $100 million, due to the typical increase in 401-K and FICA expenses and also a return to more normal accrual rates on incentive and benefits costs.
Bigger picture, on an annual basis, we do not expect core expenses to decline from the 2014 level, given our revenue goals. However, our main focus is on the efficiency ratio and thus we will calibrate our expense base against the revenue environment. As you can see on slide 8, our adjusted tangible efficiency ratio improved to 61.4% from 61.9% in the prior quarter. As we delivered both modest revenue growth and a slight decline in adjusted expenses.
Our full year adjusted tangible efficiency ratio was 63%, 230 basis points lower than 2013, despite the significant headwinds from lower mortgage volumes and declining net interest margin.
For 2015, our goal is to slightly improve upon last year’s 63% adjusted tangible efficiency ratio. As Bill noted earlier, progress in 2015 will be significantly more difficult than 2014 for a few reasons. First, we’re expecting commercial loan swap income to decline by $185 million which represents 150 basis point headwind to our efficiency ratio. Second, as discussed on the previous slide, our core expenses have declined significantly over the past few years and we do not anticipate further declines. And lastly, having achieved a better than projected result in 2014, we’re now starting from a lower base than previously expected.
Irrespective of the short-term trajectory, we remain firmly committed to our long-term target of sub-60% and achieving this important objective will be a key driver of delivering additional value to our shareholders.
Turning to credit quality on slide nine. Our asset quality performance continues to be strong. Non-performing loans declined another 17% sequentially in small part due to a transfer of $38 million of non-performing loans to held for sale status. But largely due to outflows that continue to exceed inflows. This significant reduction in the non-performing loan portfolio was achieved in conjunction with the net charge-off ratio declining 11 basis points, reflective of continued strong core
performance within the loan portfolio alongside modestly higher recoveries in the fourth quarter.
Our allowance for credit losses declined $20 million sequentially, as the continued improvement in overall asset quality more than offset a reserve build in the wholesale banking segment to address uncertainty in the energy sector. While our energy and utilities clients are important to our overall CIB business, they represent only 3.5% of our loan portfolio with 70% of the book in the utilities and power, midstream, and downstream sectors, which are not as meaningfully impacted by commodity price volatility.
Total provision expense decreased $19 million sequentially due to lower net charge-offs, partially offset by the lower reserve release. Over the near term, we expect further though moderating declines in nonperforming loans, primarily driven by the residential portfolio.
Net charge-off ratios are unlikely to sustain themselves at these levels over the long term, so we’re not expecting a significant increase in 2015 relative to 2014. We also expect our loan loss provision expense in 2015 to be fairly stable to 2014. However, the ultimate level of reserves and provision expense will be determined by a rigorous quarterly review processes which are informed by trends in our loan portfolio combined with a view on future economic conditions.
Turning to balance sheet trends on slide 10. Average performing loan growth was up 2% sequentially, driven by continued momentum in our C&I, CRE and consumer portfolios, partially offset by continued declines in the residential mortgage and home equity portfolio. C&I loan growth was broad-based and driven by both our corporate and commercial banking lines. CRE momentum continued this quarter, due to growth in both our institutional and regional businesses. Consumer loans were also higher due to growth in our consumer direct, credit card and indirect portfolios.
