But the
"We expect our net charge-offs to be flat to down in the second half of the year based upon our portfolio metrics and trends," Chairman and CEO Kevin Blair told analysts during a call Thursday after posting first-quarter results. "We initiated a deep dive through our entire multifamily portfolio, very similar to what we did last year in office and similar to what we did with the hospitality industry back in Covid."
Following that process, he added, there were
The aviation credit in Florida accounted for 17 basis points of the bank's charge-offs, and it also represented 18 basis points of its increase in nonperforming loans. "Having resolved this credit this month, that will ultimately result in a commensurate decline in NPLs, meaning that without that credit, NPLs would have actually declined" in the first quarter sequentially, Blair said.
D.A. Davidson analyst Gary Tenner called "credit weakness" the "attention getter" in
Chief Financial Officer Andrew Gregory Jr., however, said funding cost headwinds have begun to ease. While the Federal Reserve has kept interest rates at the highest point of this decade, it has not raised rates since mid-2023.
As such, looking to the rest of 2024, "we think pressure will be much more moderate than what we saw early in the year," Gregory said on the call.
Total loans of $43.3 billion were flat from the prior quarter and down nearly 2% from a year earlier.
The bank posted first-quarter net income available to common shareholders of $114.8 million, or 78 cents per share. That was up from $60.6 million, or 41 cents for the fourth quarter, but down from $193.9 million, or $1.32, a year earlier.
A Federal Deposit Insurance Corp. special assessment of $12.8 million reduced first-quarter EPS by 7 cents. A $51 million special assessment impacted fourth quarter EPS by 26 cents. Both were imposed on