As expected, allowance for loan loss increased and net charge off increased in line of what 1Q delinquency would suggest.
Interest rate spread narrow substantially, partially due to smaller percentage of asset in performing loans. The belt tightening was still ongoing. The bank did a good job assessing its current portfolio of loans, but further deterioration and hence further allowance seem to be in the cards. It's extremely tied to Commercial RE and Commercial's future. The bank seems to have enough capital to weather a couple of more quarters like this. Investment at this time is a gamble, price not withstanding.