Overview

• The company’s net income was $45.9 million for the first quarter of 2024, down from $50.3 million in the first quarter of 2023. This was primarily due to higher operating expenses.

Revenue

• Total revenue (net interest income plus non-interest income) was $181.6 million, up 7.3% from $169.0 million in the first quarter of 2023.
• Net interest income increased due to higher interest rates and growth in interest-earning assets like loans and investments. This was partially offset by higher funding costs.
• Non-interest income rose due to increases in commercial lease income, loan fees, and other income.

Expenses

• Non-interest expenses increased 23.8% to $99.2 million, driven by higher regulatory assessments, technology costs, salaries, and other expenses.

Loan Portfolio

• Total loans outstanding were $11.9 billion at March 31, 2024, roughly flat from December 31, 2023.
• Commercial loans made up 87.4% of the portfolio. Consumer loans were 12.6% of loans.
• Non-performing loans remained low at 0.27% of total loans. The allowance for loan losses was 1.12% of total loans.

Funding and Capital

• Total deposits were $18.0 billion, up slightly from December 31, 2023.
  
• The company has strong liquidity and capital levels.

Outlook

• Uncertainty remains around inflation, interest rates, economic growth, and the banking industry. This could impact future financial results.
• The company is monitoring risks and has taken actions to position itself for rising rates.