Financial Data and Key Metrics Changes - The first quarter GAAP net income was $19.2 million, with EPS of $0.65, including several non-core items [12][21] - Core ROA exceeded 1%, with core net interest margin expanding by eight basis points from the previous quarter [6][12] - Total deposits decreased by $53.2 million, primarily due to net decreases in non-interest bearing deposits [13][14] Business Line Data and Key Metrics Changes - Total loans held for investment remained relatively flat, down just $480,000, with total paydowns and payoffs matching new loan production at approximately $500 million [13][14] - Non-interest revenue contributed significantly to profitability, driven by strong swap fees and SBA loan gains [7][21] - The company experienced modest negative credit migration, with NPAs increasing from 0.42% to 0.69% [22] Market Data and Key Metrics Changes - Texas-based loans remained flat at approximately 41% of the overall loan portfolio [13] - The weighted average cost of deposits for the first quarter was 2.69%, down 12 basis points from the previous quarter [18] Company Strategy and Development Direction - The company aims for continual incremental improvement and is focused on optimizing its branch network [8][11] - The integration of Oakwood Bank is proceeding as expected, with a conversion set for September [8] - The company is open to future acquisitions but prioritizes growth within its current footprint in Louisiana and Texas [62][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and emphasized a strong start to the year, with better capitalized and diversified credit exposure [11][102] - The company expects loan growth in the low to mid-single digits for the upcoming quarters, despite macroeconomic uncertainties [27][86] - Management noted that deposit costs are expected to remain relatively flat in the near term, influenced by competitive pressures [17][82] Other Important Information - The company completed the sale of a branch in Kaplan, Louisiana, which included approximately $51 million in deposits at an 8% premium [9][15] - The company has a strong pipeline for loan growth and is focused on maintaining profitability without relying solely on loan growth [10][27] Q&A Session Summary Question: What are the internal expectations for loan growth for Q2 and the back half of the year? - Management expects loan growth in the low to mid-single digits quarter over quarter, potentially landing in the lower single digits by year-end due to a flat first quarter [27][86] Question: Can you provide updated thoughts on core margin progression throughout the year? - Management anticipates continued low single-digit basis point improvements in core margin, but does not expect to achieve the same level of expansion as in the first quarter due to interest rate uncertainties [29][30] Question: What are the expectations for deposit growth in the upcoming quarters? - Management indicated that the second quarter might be muted due to the recent branch sale, which started the quarter with a deposit deficit [44][48] Question: Are there any areas in the loan portfolio being deemphasized due to future credit expectations? - Management stated there are no specific areas being significantly downscoped, but they are monitoring C and D exposure to ensure it remains within comfortable bounds [59][60] Question: What are the current expectations for industry consolidation within the footprint? - Management believes M&A activity may slow temporarily due to current market uncertainties, but they remain prepared for future opportunities [101][102]