04:58 PM EDT, 05/14/2024 (MT Newswires) -- Accord Financial ( ACCFF ) on Tuesday said it first-quarter adjusted profit fell 29% on higher costs.

The commercial lender said its adjusted profit, which excludes most one-time items, fell to $1.53 billion, or $0.18 per share, in the period, down from $2.16 billion, or $0.25, in the year-prior quarter. The result topped the consensus analyst estimate for the measure of $0.15 per share.

Revenue rose 12% to $20.67 billion from $18.44 billion.

The company said a non-recurring reduction in equity in the fourth quarter of 2023 caused it to reduce leverage, shore up its balance sheet and amend its primary banking facility.

"While these initiatives stabilized the Company's financing environment, the ripple effects can be seen in the financial results ... While the portfolio and revenue held up well through the first quarter, expenses grew owing to the lengthy negotiation to amend the primary banking facility. As a result, the Company's first quarter performance was weighed down by $1.1 million of professional fees," chief executive Simon Hitzig said in a release. " ... The uncertain economic environment is driving a steady flow of new applications, however, the challenging credit environment keeps us highly selective in onboarding new clients."

The company said it is continuing to evaluate strategic alternatives, including "new funding sources, a shift in overall product mix, and the potential to divest one or more non-core subsidiaries".

Accord shares closed up $0.05 to $4.20 on the Toronto Stock Exchange. ...