We talked to you about 90 days ago.
So I'll try and draw comparisons to what I said 90 days back.
I had an optimistic tone 90 days ago, I'm more optimistic today.
About 30% of our employees are either vaccinated or about to be fully vaccinated, and many more are in line.
The quarterly performance, we reported net income of about $99 million, 98.8% to be exact, $1.06 per share.
This compares to $0.89 that we reported to you last quarter.
And obviously, last -- this time last year, the first quarter was a loss of $0.33.
We had NII of $196 million.
This compares to $193 million last quarter and $181 million compared to the first quarter of last year.
As we told you three months ago, we were positively biased where it came to NIM guidance, and NIM did expand from 2.33% last quarter to 2.39% this quarter.
Noninterest DDA grew by $957 million, which I'm very happy about.
The average noninterest DDA grew by $338 million.
But the number that really makes me happy is that noninterest DDA now stands at about 29% of our total deposits.
Just in December, we were at 25%.
At the end of 2019, I think we were at 18%.
I think we were 14% or 15%.
Cost of deposits also declined by 10 basis points.
Last quarter, we were at 43, we're down to 33 basis points for this quarter.
And the reason I can say that is because on March 31, on a spot basis, we were already down to 27 basis points.
So we're starting second quarter at 27, so the number is going to be somewhere in the mid-20s.
Loans were down about $500 million.
So, I think $425 million of that $505 million was directly attributable to less utilization.
In terms of credit, let me go over a few things, temporary deferrals and modified loans under CARES Act -- modification under CARES Act, that total number remains stable at about 3% of the portfolio.
It was 71 basis points last quarter, it's down to 67.
But if you actually exclude the guaranteed portion of SBA loans, it was 53 basis points.
I think last year, we were running at about 26 basis point net charge-off rate.
We're down to 17 basis points this quarter.
CET1 ratio is at 13.2% for holdco and 14.8% for the bank.
We bought back about $7.3 million of stock this quarter.
We still have a little less than $40 million left in the buyback, and we plan to execute it against a buyback opportunistically.
We did declare a $0.23 dividend, and currently, we anticipate maintaining that level.
Our book value per share is now at $32.83.
Tangible book values at $32 even.
I won't say from which bank, but it comes with $0.5 million loan and $26 million in deposits with a full suite of treasury management products.
Also, let me talk a little bit about 2.0, and specifically 2.0 revenue initiatives.
Deposit service charges and fees this quarter were up 17% compared to the first quarter of last year.
This is -- a lot of that is coming from the 2.0 initiatives that we've put in place and more to come.
Also, the small business initiatives that were also part of 2.0 are now going to pick momentum.
Small business, as you can imagine, were distracted very much with PPP 1.0 and then PPP 2.0.
So average noninterest-bearing deposits grew by $338 million for the quarter and by $3.1 billion compared to the first quarter of 2020.
On a period-end basis, noninterest DDA grew by $957 million for the quarter, while total deposits grew by $236 million.
So significantly, time deposits for the quarter declined by $1 billion.
So if you look at total cost of deposits, as Raj mentioned, declined to 33 basis points for the quarter, 27 basis points on a spot basis, down from 36 as of December 31, 2020.
As Raj mentioned on the loan side, we were down $505 million.
We did have $234 million of growth in the residential portfolio with the EBO Ginnie Mae portion contributing $341 million.
It would have contributed another $800 million of base into the C&I portfolio.
We booked $265 million worth of PPP loans during the first quarter under the Second Draw Program.
And in numbers of units, it's about 1/3 of what we did in the First Draw Program.
On the forgiveness front, we were -- we forgave $138 million in loans during -- that were made during the First Draw Program.
We have about $650 million remaining outstanding under the First Draw Program as of March 31.
In commercial, only $35 million of commercial loans.
We're still on short-term deferral as of March 31, $621 million of commercial loans have been modified under the CARES Act.
Together, these are $656 million or approximately 4% of the total commercial portfolio, which is pretty consistent with the levels since the end of the last quarter.
Not unexpectedly, the portfolio segment most impacted has been the CRE, hotel book, where $343 million or 55% of the segment has been modified, also consistent with prior quarter end.
Residential, excluding the Ginnie Mae early buyout portfolio, $91 million of the loans were on short-term deferral, an additional $15 million had been modified under longer-term CARES Act repayment plans as of March 31.
This totaled about 2% of the residential portfolio.
Of $525 million in residential loans that were granted an initial payment deferral, $91 million or 17% are still on deferral, while $434 million or 83% have rolled off.
Of those that have rolled off, 94% have either paid off or are making their regular payments at this time.
We saw collection rates of 96%, which were even for both Florida and New York.
Multifamily loans were at 90% collection rate in New York and 92% collection rate in Florida.
And retail has continued to improve and performed pretty well at 85% in New York and 99% in Florida.
Occupancy for the two hotels that are open in New York ran about 80% for March.
And in Florida, occupancy rates for the entire portfolio, which is a little under 30 hotels in total, averaged 80% in March, with some reporting occupancy rates in the 90% range.
So we've seen this improve from 46% last quarter, 56% in January, February was stronger, and March was up to the 80% level, and we're seeing forward forecast for most operators that continue to show strength as we get -- as we start to head toward the summer months.
Planet Fitness, 100% of the stores are now open with payment systems turned on, retention is averaging 90% in that concept.
So as Raj mentioned, net interest income grew this quarter, up about 1.5% from the prior quarter and up 9% from the first quarter of the prior year.
The NIM increased to 2.39% this quarter from 2.33% last quarter in spite of elevated levels of liquidity on the balance sheet, so we were pleased to see that.
The yield on loans increased to 3.58% this quarter from 3.55% last quarter.
And $6.3 million of that relates to the First Draw Program.
The yield on securities declined by nine basis points to 1.73% for the quarter.
The total cost of deposits declined by 10 basis points quarter-over-quarter with the cost of interest-bearing deposits declining by 13 basis points.
We do expect that to continue to decline given that the spot rate was 27 basis points at quarter end.
The cost of FHLB borrowings did increase to 2.32% as the borrowings that were paid down were short-term lower rate advances compared to the hedged advances that remain on the balance sheet.
In the aggregate, there's about $1.6 billion of hedged advances that are scheduled to mature over the remainder of 2021, with a weighted average rate in excess of 2%.
Overall, the provision for credit losses for the quarter was a recovery of $28 million, compared to a recovery of $1.6 million last quarter, and obviously, a provision of $125 million in the first quarter of 2020, which was the quarter where we really booked our big provision related to the onset of COVID.
The reserve declined from 1.08% to 0.95% of loans, and Slides nine through 11 of our deck gives some further details on the allowance.
Major drivers of change, the reserve went down $36 million related to the economic forecast, again, primarily the change in unemployment.
A decrease of $10.1 million due to charge-offs, most of which related to one BFG franchise loan that was having trouble even prior to COVID.
A decrease of $12.8 million due to changes in the portfolio mix and the net decline in the balance of loans outstanding.
$6.1 million increase in qualitative reserves.
$9.6 million increase related to updates of certain assumptions, primarily updated prepayment speeds.
An increase of $6.8 million related to loans that were further downgraded to the substandard accruing category.
The reserve for pass rated loans declined from $137 million to $93 million, while the reserve for non-pass loans increased from $120 million to $128 million.
National unemployment declining to 5% by the end of 2021 and trending down to just over 4% by the end of 2022.
Real GDP growth of just over 7% by the end of 2021 and 2.3% for '22.
The S&P 500 index remaining relatively stable at around 3,700 and Fed funds rates staying at or near zero into 2023.
Little bit of detail on risk rating migration, and you can see a breakdown of all of this on Slides 23 through 26 in the deck.
Total criticized and classified assets declined by about $75 million this quarter, but we did see some migration into the substandard accruing category from special mention.
Nonperforming loans did decline this quarter, from $244 million to $234 million.
Now with the exception of March where it went up 0.5 point, so it sort of went in the right direction a little bit.
I was in Miami for the first time after 12 months, two weeks ago.

Summary:
The quarterly performance, we reported net income of about $99 million, 98.8% to be exact, $1.06 per share.