Financial Data and Key Metrics Changes - The company reported a deposit growth of 1.3% and a loan-to-deposit ratio of 81%, indicating a solid liquidity position [7][8] - Net interest margin (NIM) expanded by four basis points to 3.48%, with an efficiency ratio of 45.8% [9][23] - Reported earnings per share (EPS) was $1.30, with a return on assets (ROA) of 1.15% and a return on tangible common equity (ROATC) just below 16% [9][20] Business Line Data and Key Metrics Changes - Total loans increased by $551 million, or 1% linked quarter, with significant growth in traditional full-relationship middle market banking [9][18] - Noninterest income decreased by $7 million to $93 million, primarily due to a unique transaction in the previous quarter [20][26] - Nonperforming assets (NPAs) increased by 22%, largely due to healthcare and office portfolios [30] Market Data and Key Metrics Changes - The company experienced robust core deposit growth, with every major business area growing deposits except for corporate deposits, which declined [15] - The overall criticized loans actually declined in the first quarter, indicating a material slowdown in negative migration [12] Company Strategy and Development Direction - The company aims to maintain a strong liquidity profile and is focused on enhancing its funding profile through various operating environments [15] - The management is committed to investing in differentiated businesses, risk management, technology, and back-office infrastructure [9][10] - The company plans to continue share repurchases while also considering organic growth and potential acquisitions in the healthcare vertical [46] Management's Comments on Operating Environment and Future Outlook - The management expressed a cautious view on economic activity, anticipating a stable but uncertain environment for the remainder of the year [34] - The company remains optimistic about its clients' financial health and their strategies to manage costs and supply chain issues [13][129] - The outlook for 2025 remains unchanged, with expectations of a slowing, non-recessionary economic environment [32][34] Other Important Information - The company increased its provision for credit losses by approximately $20 million due to a higher probability of recession [10][29] - The tangible book value per common share grew to $33.97, up over 3% from the previous quarter [17][32] Q&A Session Summary Question: Is the timing for credit stabilization still on track? - Management remains confident in seeing an inflection point in credit migration by midyear, with a decline in criticized assets [40][44] Question: How is the company approaching share buybacks given economic uncertainty? - The company believes its stock is undervalued and plans to continue share repurchases while also focusing on organic growth and potential acquisitions [46] Question: What is the outlook for provisioning and charge-offs? - Management expects charge-offs to be in the range of 25 to 35 basis points for the year, with provisioning potentially aligning with charge-offs if economic conditions stabilize [58][94] Question: How is the company managing higher-cost deposit products? - The company is confident in its ability to reduce costs in higher-rate products and has flexibility in adjusting deposit pricing based on market conditions [116] Question: What is the company's strategy regarding loan growth in commercial real estate? - The company is being selective in commercial real estate lending and expects to see growth while maintaining capital ratios [85][139]

Financial Data and Key Metrics Changes - The company reported a deposit growth of 1.3% and a loan-to-deposit ratio of 81%, indicating a solid liquidity position [7][8] - Net interest margin (NIM) expanded by four basis points to 3.48%, with an efficiency ratio of 45.8% [9][23] - Reported earnings per share (EPS) was $1.30, with a return on assets (ROA) of 1.15% and return on tangible common equity (ROATC) just below 16% [9][20] Business Line Data and Key Metrics Changes - Total loans increased by $551 million, or 1% linked quarter, with significant growth in traditional full-relationship middle market banking [9][18] - Noninterest income decreased by $7 million to $93 million, primarily due to a unique transaction in the previous quarter [20][26] - Noninterest expenses rose to $343 million, up from $340 million in the previous quarter, driven by seasonal increases in benefits expense [20][27] Market Data and Key Metrics Changes - The company experienced robust core deposit growth, with total deposits increasing by over $800 million [17][19] - Commercial classified loans increased by 6%, while nonperforming assets rose by 22%, primarily due to issues in healthcare and office portfolios [30][12] Company Strategy and Development Direction - The company aims to maintain a strong liquidity profile and is focused on enhancing its funding profile through various operating environments [15][35] - The management is optimistic about the potential for organic growth and is considering tuck-in acquisitions, particularly in the healthcare vertical [46][35] - The company is preparing for a transition to a category four bank, with a goal to be compliant within approximately two years [72][74] Management's Comments on Operating Environment and Future Outlook - The management expressed a cautious view on economic activity, anticipating a stable but uncertain environment for the remainder of the year [34][35] - The company remains confident in its ability to manage credit risks and is not seeing significant impacts from recent tariff announcements [13][35] - The management noted that clients are generally healthy and optimistic, although macroeconomic uncertainties are delaying investment cycles [35][34] Other Important Information - The company increased its provision for credit losses by approximately $20 million due to a higher weighting of recessionary scenarios in its modeling [10][29] - The allowance for loan losses rose to $713 million, or 1.34% of loans, reflecting a proactive approach to potential economic downturns [29][30] Q&A Session Summary Question: Is the timing for credit stabilization still on track? - Management remains confident in seeing an inflection point in credit migration by midyear, with a decline in criticized assets noted [39][40] Question: How is the company approaching share buybacks given economic uncertainty? - The company believes its stock is undervalued and plans to continue share repurchases while also focusing on organic growth and potential acquisitions [45][46] Question: What is the outlook for provisioning in light of recent charge-offs? - Management indicated that the increase in provision was primarily due to changes in economic scenario weightings rather than asset quality trends [54][55] Question: How is the company managing its expense base in a potentially weaker revenue environment? - The company has flexibility in its expense management and can slow investments if necessary, while also focusing on efficiency improvements [134][135] Question: What are the expectations for loan growth in the coming quarters? - Management anticipates a diverse contribution to loan growth across various asset classes, with a focus on maintaining a balanced portfolio [138][140]