Stephens analyst Matt Olney downgraded Hancock Holding (HBHC), LegacyTexas Financial (LTXB) and Independent Bank (IBTX), all to Equal Weight from Overweight, citing increased concerns about credit migration of energy loans in the near-term due to the deeper energy cycle. He cut his price target on Hancock to $31 from $34, on LegacyTexas to $29 from $34 and on Independent to $44 from $48. He also cut his price target on three other banks - Cullen/Frost (CFR), First Financial (FFIN) and Texas Capital (TCBI) - citing the same reasons, and maintains Equal Weight ratings on those three.

Reports Q1 provision for credit losses of $808K vs. $2.78M last year. Q1 net charge-offs were $428K vs. net recoveries of $277K last year. Tangible book value was $8.24 from $8.30 at quarter end. "Our results were highlighted by an increase in net interest income which was achieved through organic loan and deposit growth during the quarter," said CEO F. Scott Dueser. "We are also pleased that, as our bond portfolio continues to mature, we have been able to use that cash flow to fund our organic loan growth, bolster our liquidity position and begin to repurchase securities at much higher rates. We remain financially safe, sound and secure which is reflected in our strong regulatory capital ratios, diversified deposit base and access to multiple liquidity sources."

Q1 EPS included an 8c per diluted share legal settlement expense, FDIC special assessment expense of 5c per diluted share and 3c per diluted share of restructuring expenses. Reports Q1 loan loss provision $19.0M vs. $19.0M for 4Q23. Q1 net charge-offs were $10.8M vs. $13.8M and $19.9M during 4Q23 and 1Q23, respectively. Tangible book value per share was $ 61.06 from $61.34 at previous quarter end. "We continue to leverage our unique balance sheet positioning and maturing product capabilities to build an enduring and valuable franchise," said Rob C. Holmes, CEO. "Quality quarterly growth in areas of focus coupled with strong firm-wide pipelines signal emerging momentum moving into Q2."