Entegra Financial Corp reported first-quarter earnings of 31 cents per share, according to a filing with the Securities and Exchange Commission on Thursday, below analyst estimates.

Net income for the first quarter of 2017 was $2.02 million, or 31 cents per share, up from $1.2 million, or 19 cents per share, in the first quarter of 2016. Analysts were expecting earnings of 37 cents per share.

Non-performing loans in 2017 increased to $7.2 million, up from $6 million in 2016.

“The first quarter represents another successful quarter for the company as we continue to grow net income and improve return on equity,” said CEO Roger Plemens in a statement “Although the first quarter is usually our slowest period, we are pleased with the significant improvement over the first quarter of 2016. The market is beginning to recognize our intrinsic value with our stock trading above book value.”

Entegra’s book value per share was $20.97 as of March 31, up 40 cents from $20.57 as of Dec. 31, 2016.

Entegra Financial Corp is the parent holding company of Entegra Bank. The company currently operates 17 branch locations and two loan offices throughout North Carolina, South Carolina and Georgia.

“We successfully closed the previously announced acquisition of two branches in February expanding our footprint into northern Georgia, which provides critical deposits to fund asset growth and increase net interest income,” said Plemens. “We will continue to execute our strategy and look for opportunities for growth within our contiguous markets.”

The company’s stock is trading at $23.00, down 4.17 percent midday Friday.