Financial Data and Key Metrics - Core business demonstrated strong performance in Q4 2024, with solid organic loan and deposit growth, and improvement in net interest income and net interest margin [5] Business Line Data and Key Metrics - No specific data provided for individual business lines [5] Market Data and Key Metrics - No specific data provided for individual markets [5] Company Strategy and Industry Competition - The company is transitioning from a multi-year transformation to focus on the execution and implementation of strategic growth plans [4] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the hard work of the team throughout 2024 and expressed appreciation for their efforts [4] Other Important Information - Discussions on the call contain forward-looking statements and references to non-GAAP financial measures [3] Q&A Session - No Q&A session details provided in the content [1][2][3][4][5]

This presentation contains "forward-looking statements" including statements with respect to the Company's objectives, expectations and intentions and other statements that are not historical facts. Examples of forward- looking statements include but are not limited to: our future operating or financial performance, including revenues, expenses, expense savings, income or loss and earnings or loss per share, and other financial items; statements regarding expectations, plans or objectives for future operati ...

Core Insights - Amerant Bancorp Inc. reported revenue of $111.32 million for the quarter ended December 2024, reflecting a year-over-year increase of 9.9% and a surprise of +10.73% over the Zacks Consensus Estimate of $100.54 million [1] - The company's EPS for the quarter was $0.50, up from $0.46 in the same quarter last year, resulting in an EPS surprise of +85.19% compared to the consensus estimate of $0.27 [1] Financial Metrics - Net charge-offs as a percentage of average total loans held for investment were 0.3%, significantly lower than the average estimate of 0.9% from three analysts [4] - The efficiency ratio was reported at 74.9%, higher than the average estimate of 68.3% from three analysts [4] - The net interest margin stood at 3.8%, exceeding the average estimate of 3.6% from three analysts [4] - Average balances of total interest-earning assets were $9.30 billion, slightly below the average estimate of $9.35 billion from two analysts [4] - Total non-performing loans amounted to $104.10 million, higher than the average estimate of $83.80 million from two analysts [4] - Total non-performing assets were reported at $122.18 million, compared to the average estimate of $95.88 million from two analysts [4] - Noninterest income reached $23.68 million, surpassing the average estimate of $17.84 million from three analysts [4] - Net interest income was $87.63 million, exceeding the average estimate of $82.70 million from three analysts [4] Stock Performance - Shares of Amerant Bancorp have returned +0.5% over the past month, while the Zacks S&P 500 composite has changed by +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Amerant Bancorp Inc. reported quarterly earnings of $0.50 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and showing an increase from $0.46 per share a year ago, resulting in an earnings surprise of 85.19% [1] - The company achieved revenues of $111.32 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10.73% and increasing from $101.29 million year-over-year [2] - The stock has underperformed the market with a gain of about 1.4% since the beginning of the year, compared to the S&P 500's gain of 2.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $100.59 million, and for the current fiscal year, it is $2.06 on revenues of $424.58 million [7] - The estimate revisions trend for Amerant Bancorp is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Southeast industry, to which Amerant Bancorp belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income attributable to the company was $16.9 million in Q4 2024, compared to a net loss of $48.2 million in Q3 2024[1] - Full-year 2024 net loss attributable to the company was $15.8 million, compared to net income of $32.5 million in 2023[1] - Net income attributable to Amerant Bancorp Inc. for 2024 was a loss of $15,752 thousand, compared to a profit of $32,490 thousand in 2023[22] - Net income attributable to Amerant Bancorp Inc. for Q4 2024 was $16.881 million, a significant improvement from a loss of $48.164 million in Q3 2024[30] - Net income attributable to Amerant Bancorp Inc. for Q4 2024 was $16.881 million, compared to a loss of $48.164 million in Q3 2024[32] - Core net income for Q4 2024 was $21.160 million, up from $9.249 million in Q3 2024[32] - Basic earnings per share for Q4 2024 was $0.40, compared to a loss of $1.43 in Q3 2024[32] - Core basic earnings per share for Q4 2024 was $0.50, up from $0.27 in Q3 2024[32] - Core ROA for Q4 2024 was 0.83%, compared to 0.37% in Q3 2024[32] - Core ROE for Q4 2024 was 9.25%, up from 4.80% in Q3 2024[32] - Efficiency ratio for Q4 2024 was 74.91%, compared to 228.74% in Q3 2024[32] - Core efficiency ratio for Q4 2024 was 64.71%, down from 69.29% in Q3 2024[32] - Total after-tax non-routine items in noninterest expense for Q4 2024 was $11.739 million, up from $4.340 million in Q3 2024[32] - Total after-tax non-routine items in noninterest income for Q4 2024 was a loss of $7.460 million, compared to a gain of $53.073 million in Q3 2024[32] - The company recorded a pre-tax net loss of $68.5 million in Q3 2024 due to an investment portfolio repositioning, with an additional $8.1 million loss in Q4 2024[35] - Securities losses in 2024 amounted to $76.86 million, primarily due to investment portfolio repositioning[55] Net Interest Income and Margin - Net interest income increased by 8% to $87.6 million in Q4 2024, while provision for credit losses declined by 48% to $9.9 million[2] - Net Interest Margin (NIM) improved to 3.75% in Q4 2024, up from 3.49% in Q3 2024[5] - Net interest margin (NIM) for Q4 2024 increased to 3.75%, up from 3.49% in Q3 2024[24] - Net interest income for the year ended December 31, 2024, was $325,957 thousand, slightly down from $326,464 thousand in 2023[22] - Net interest income grew to $87.63 million in Q4 2024, compared to $81.68 million in Q4 2023[46] - Net interest margin improved to 3.75% in Q4 2024, up from 3.72% in Q4 2023[46] - Net interest income slightly decreased to $325.96 million in 2024 from $326.46 million in 2023[49] - Net interest margin decreased to 3.58% in 2024 from 3.76% in 2023[49] Assets and Loans - Total assets decreased by 4.40% to $9.9 billion in Q4 2024, primarily due to the sale of the Houston Franchise[4] - Total gross loans decreased by 3.90% to $7.27 billion in Q4 2024, while total deposits decreased by 3.17% to $7.9 billion[4] - Total assets increased to $9,897,691 thousand as of December 31, 2024, compared to $9,716,327 thousand in December 2023[22] - Total deposits decreased to $7,854,069 thousand as of December 31, 2024, from $7,894,863 thousand in December 2023[22] - Core deposits stood at $5,619,624 thousand as of December 31, 2024, compared to $5,597,766 thousand in December 2023[22] - Total assets increased to $9,897.69 million as of December 31, 2024, compared to $9,716.33 million in 2023[34] - Total assets reached $10.09 billion in Q4 2024, up from $9.51 billion in Q4 2023[45] - Total assets decreased to $9,897.69 million as of December 31, 2024, compared to $10,353.13 million in September 2024, reflecting a 4.4% decline[68] - Loans held for investment increased to $7,224.37 million in December 2024, up from $6,964.17 million in September 2024, a 3.7% growth[68] - Commercial real estate loans (non-owner occupied) decreased slightly to $1,678.47 million in December 2024 from $1,688.31 million in September 2024[70] - Consumer loans and overdrafts decreased to $273.01 million in December 2024 from $278.39 million in September 2024, a 1.9% decline[70] - Loans held for sale at the lower of fair value or cost were $553.94 million in September 2024, but dropped to $0 in December 2024 due to the sale of the Houston franchise[73] - Mortgage loans held for sale at fair value increased to $42.91 million in December 2024 from $43.85 million in September 2024[73] - Total deposits decreased to $7,854.07 million in December 2024 from $8,110.94 million in September 2024, a 3.2% decline[68] - Advances from the Federal Home Loan Bank decreased to $745.00 million in December 2024 from $915.00 million in September 2024, an 18.6% reduction[68] - Retained earnings increased to $582.23 million in December 2024 from $569.13 million in September 2024, a 2.3% growth[68] - Accumulated other comprehensive loss worsened to $(39.81) million in December 2024 from $(12.96) million in September 2024[68] - Total Non-Accrual Loans increased to $100,022 thousand in December 2024 from $28,276 thousand in December 2023, showing a significant rise in non-performing loans[75] - Total Past Due Accruing Loans decreased to $4,079 thousand in December 2024 from $6,124 thousand in December 2023, indicating a reduction in overdue loans[75] - Total Non-Performing Assets stood at $122,175 thousand in December 2024, down from $129,438 thousand in September 2024[77] - Domestic deposits decreased to $5,277,763 thousand in December 2024 from $5,553,336 thousand in September 2024, reflecting a decline in domestic deposit base[82] - Foreign deposits, particularly from Venezuela, remained stable at $1,889,331 thousand in December 2024, compared to $1,887,282 thousand in September 2024[82] - Total deposits decreased to $7,854,069 thousand in December 2024 from $8,110,944 thousand in September 2024, showing a contraction in overall deposit base[82] - Commercial loans categorized as Substandard Doubtful increased to $66,605 thousand in December 2024 from $69,429 thousand in September 2024, indicating a slight improvement in credit quality[79] - Owner-occupied real estate loans in the Substandard Doubtful category increased to $24,097 thousand in December 2024 from $29,310 thousand in September 2024, showing a reduction in riskier loans[79] - Total loans categorized as Special Mention and Substandard Doubtful decreased to $131,105 thousand in December 2024 from $190,618 thousand in September 2024, reflecting an overall improvement in loan quality[79] - The company did not have any loans categorized as "Loss" as of December 2024, indicating no write-offs during the period[79] Credit Losses and Provisions - Provision for credit losses on loans in Q4 2024 was $9.7 million, compared to $17.9 million in Q3 2024, $17.7 million in Q2 2024, and $12.4 million in Q1 2024[27] - Provision for unfunded commitments (contingencies) in Q4 2024 was $0.2 million, compared to $1.1 million in Q3 2024 and $1.5 million in Q2 2024[27] - The Provision for Loan Losses for the year ended December 31, 2024, was $60.5 million, slightly lower than $61.3 million in 2023[27] - Allowance for credit losses increased to $84,963 thousand as of December 31, 2024, from $79,890 thousand in September 2024[22] - Allowance for credit losses to total non-performing loans decreased to 81.62% in Q4 2024, down from 93.51% in Q2 2024[24] Noninterest Income and Expenses - Noninterest income for 2024 was $9,909 thousand, a significant drop from $87,496 thousand in 2023[22] - Total noninterest income for Q4 2024 was $23.684 million, compared to a loss of $47.683 million in Q3 2024[30] - Core noninterest income for Q4 2024 was $17.820 million, slightly lower than $20.801 million in Q3 2024[30] - Core noninterest expenses for Q4 2024 were $68.238 million, down from $70.536 million in Q3 2024[30] - Total noninterest income for 2024 was $9.91 million, a significant drop from $87.5 million in 2023[54] - Gain on sale of Houston Franchise contributed $12.64 million to noninterest income in 2024[54] - Mortgage banking income for Q4 2024 was $1.1 million, compared to $2.8 million in Q3 2024 and $0.6 million in Q4 2023[56] - Total noninterest expense for Q4 2024 was $83.4 million, a 9.4% increase from Q3 2024 ($76.2 million) and a 24% decrease from Q4 2023 ($109.7 million)[59] - Salaries and employee benefits accounted for 42.3% of total noninterest expense in Q4 2024, totaling $35.3 million[59] - Losses on loans held for sale were $12.6 million in Q4 2024, compared to $37.5 million in Q4 2023, representing a 66.4% decrease[59] - Professional and other services fees increased to $14.3 million in Q4 2024, up 4.4% from Q3 2024 and 0.8% from Q4 2023[59] - The company incurred $1.4 million in expenses related to the Houston Transaction in Q4 2024[60] - Fixed assets impairment charge of $3.4 million was recorded in 2024 in connection with the Houston Transaction[61] - Legal expenses related to the Houston Transaction totaled $0.1 million in Q4 2024 and $0.4 million for the full year 2024[62] - Broker fees associated with the Houston Transaction were $1.0 million in Q4 2024 and $1.3 million for the full year 2024[66] - Amerant Mortgage-related expenses were $3.7 million in Q4 2024, compared to $3.5 million in Q4 2023[66] Dividends and Shareholder Equity - The company declared a cash dividend of $0.09 per share, payable on February 28, 2025[7] - Cash dividend declared per common share remained steady at $0.36 for both 2024 and 2023[22] - The company declared cash dividends of $0.09 per share in Q4 2024, totaling $3.8 million, compared to $3.0 million per quarter in previous periods[27] - Tangible common stockholders' equity rose to $866.15 million in December 2024, up from $711.04 million in December 2023[34] - Tangible common equity ratio improved to 8.77% in December 2024 from 7.34% in December 2023[34] - Stockholders' equity increased to $910.16 million in Q4 2024, compared to $736.62 million in Q4 2023[46] Non-GAAP Measures and Forward-Looking Statements - The company uses non-GAAP financial measures such as "pre-provision net revenue (PPNR)", "core pre-provision net revenue (Core PPNR)", and "core earnings per share" to evaluate performance and provide supplemental information to investors[17][18] - Non-GAAP measures are used to account for restructuring activities, non-core banking activities, and other non-routine actions aimed at improving customer service and operating performance[18] - The company's unaudited financial information for interim periods may not reflect the full fiscal year results or financial condition[16] - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projected outcomes[14] - The company's forward-looking statements are qualified by cautionary notices and risk factors detailed in SEC filings[14][15] Loan Portfolio and Yield - Loan portfolio net income increased to $128.91 million with a yield of 7.00% in Q4 2024, compared to $127.09 million and 7.09% yield in Q4 2023[45] - Debt securities available for sale income rose to $16.07 million with a yield of 4.75% in Q4 2024, up from $11.60 million and 4.34% yield in Q4 2023[45] - Total interest-earning assets reached $9.30 billion with a yield of 6.54% in Q4 2024, compared to $8.72 billion and 6.62% yield in Q4 2023[45] - Loan portfolio net income increased to $505.5 million in 2024 from $475.4 million in 2023, with a yield rise from 6.78% to 7.06%[49] - Total interest-earning assets grew to $9.1 billion in 2024, up from $8.68 billion in 2023, with a yield increase from 6.32% to 6.54%[49] - Non-performing loans averaged $101.0 million in Q4 2024, up from $35.1 million in Q4 2023[51] - Average non-performing loans to total loans ratio increased to 1.03% in 2024 from 0.48% in 2023[49] Restructuring and Non-Routine Items - Restructuring of the BOLI program in Q4 2023 resulted in $4.6 million in additional expenses, including a $0.7 million reduction in cash surrender value and $2.8 million in income tax expense[36] - Nonrecurrent expenses related to the engagement of FIS totaled $1.6 million in Q4 2023 and $6.4 million for the full year 2023[39] - The company incurred $12.6 million in losses on the sale of a portfolio of 323 business-purpose residential mortgage loans in 2024[43] - Fair value adjustments of $35.5 million were recorded in 2023 for Houston-based CRE loans held for sale[43] - Income tax effect on nonroutine items was calculated using estimated tax rates of 27.14% and 22.50% for 2024[43] - Other intangible assets primarily consist of naming rights and mortgage servicing rights, totaling $2.0 million and $1.5 million, respectively, as of December 31, 2024[43] Capital and Liquidity - Total capital ratio increased to 13.43% in Q4 2024, up from 12.72% in Q3 2024[24] - Excess of average interest-earning assets over average interest-bearing liabilities grew to $1.93 billion in Q4 2024, up from $1.69 billion in Q4 2023[46] - The company completed a public offering of 8,684,210 shares of Class A common stock at $19.00 per share on September 27, 2024[27]

Core Viewpoint - Amerant Bancorp Inc. (AMTB) is expected to report a quarterly earnings per share (EPS) of $0.27, indicating a 41.3% decline year-over-year, with revenues projected at $100.54 million, a decrease of 0.7% compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 2.7% over the past 30 days, indicating analysts have reassessed their projections [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Key Metrics Forecast - Analysts predict the 'Efficiency Ratio' will reach 68.3%, a significant improvement from 108.3% a year ago [5] - The 'Net Interest Margin' is expected to be 3.6%, slightly down from 3.7% reported in the same quarter last year [5] - 'Average Balances - Total Interest-Earning Assets' are forecasted to be $9.35 billion, up from $8.72 billion in the same quarter last year [6] - 'Total Non-Performing Loans' are expected to be $83.80 million, compared to $34.40 million reported in the same quarter last year [6] - 'Total Non-Performing Assets' are projected at $95.88 million, up from $54.58 million in the same quarter last year [7] - 'Noninterest Income' is estimated at $17.84 million, down from $19.61 million reported in the same quarter last year [7] - 'Net Interest Income' is forecasted to reach $82.70 million, compared to $81.68 million in the same quarter last year [8] Stock Performance - Amerant Bancorp shares have experienced a -0.5% change over the past month, compared to a -0.4% change in the Zacks S&P 500 composite [8] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [8]

Core Viewpoint - Amerant Bancorp Inc. (AMTB) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the actual results being a significant factor that could influence its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for January 22, 2025, with a consensus estimate of $0.27 per share, reflecting a year-over-year decrease of 41.3%. Revenues are projected to be $100.54 million, down 0.7% from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 2.7% higher, indicating a reassessment by analysts [4]. However, the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the potential deviation of actual earnings from the consensus estimate, with a strong predictor of an earnings beat being a positive Earnings ESP combined with a favorable Zacks Rank [6][8]. Historical Performance - In the last reported quarter, Amerant Bancorp exceeded the expected earnings of $0.23 per share, achieving $0.27, which was a surprise of +17.39%. However, the company has only beaten consensus EPS estimates once in the last four quarters [12][13]. Industry Comparison - In contrast, Pinnacle Financial (PNFP), another player in the Zacks Banks - Southeast industry, is expected to report earnings of $1.80 per share, indicating a year-over-year increase of 7.1%, with revenues expected to rise by 16.9% to $463.47 million [17][18].

Core Insights - Amerant Bank has partnered with Sedano's Supermarkets to distribute reusable bags designed by an Amerant team member, with proceeds benefiting Centro Mater, a nonprofit organization focused on underserved children and families [1][2]. Group 1: Partnership Details - The initiative will distribute over 40,000 artist-designed reusable shopping bags at Sedano's and Fresco y Más locations in Miami-Dade, Broward, and Tampa [2]. - Customers can receive a bag for free or purchase one with a donation of their choice, with all proceeds going to Centro Mater [2][4]. - The bags are designed to reflect the Hispanic influence in South Florida and Tampa, promoting cultural unity [2][3]. Group 2: Sustainability and Community Impact - The partnership emphasizes sustainability by promoting the use of eco-friendly bags to reduce single-use plastic [3]. - Both organizations are committed to community support and cultural unity, aiming to create a positive impact on local families and neighborhoods [4][5]. - The campaign will run through the holiday season while supplies last [5]. Group 3: Company Backgrounds - Amerant Bank has been serving clients in Florida for over 40 years and is recognized for its community involvement and support for nonprofit organizations [6]. - Sedano's Supermarkets, founded in 1962, is the largest independently owned Hispanic supermarket chain in the U.S., with over 3,000 employees and 32 stores [7].

Total Assets and Liabilities - Total assets increased to $10.35 billion as of September 30, 2024, compared to $9.72 billion as of December 31, 2023[5] - Total deposits grew to $8.11 billion from $7.89 billion year-over-year[5] - Loans held for investment, gross, rose to $6.96 billion from $6.87 billion year-over-year[5] - Interest earning deposits with banks surged to $614.35 million from $242.71 million year-over-year[5] - Debt securities available for sale increased to $1.48 billion from $1.22 billion year-over-year[5] - Advances from the Federal Home Loan Bank increased to $915 million from $645 million year-over-year[5] - Cash and cash equivalents increased to $671.84 million from $321.87 million year-over-year[5] - Total stockholders' equity increased to $902.9 million as of September 30, 2024, up from $736.1 million at the end of 2023[11] - Total liabilities held for sale as of September 30, 2024, amounted to $603.7 million, including $590.7 million in total deposits and $12.9 million in other liabilities[27] Income and Expenses - Net interest income for Q3 2024 was $80.999 million, compared to $78.577 million in Q3 2023, showing a 3.1% increase[7] - Total interest income for Q3 2024 was $151.637 million, up from $139.383 million in Q3 2023, reflecting an 8.8% increase[7] - Provision for credit losses in Q3 2024 was $19 million, significantly higher than $8 million in Q3 2023, indicating a 137.5% increase[7] - Noninterest income for Q3 2024 was a loss of $47.683 million, compared to a gain of $21.921 million in Q3 2023, marking a 317.6% decline[7] - Total noninterest expenses for Q3 2024 were $76.208 million, up from $64.420 million in Q3 2023, a 18.3% increase[7] - Net loss for Q3 2024 was $48.164 million, compared to a net income of $22.119 million in Q3 2023, a 317.8% decline[7] - Basic loss per common share for Q3 2024 was $1.43, compared to earnings of $0.66 per share in Q3 2023[9] - Comprehensive income for Q3 2024 was $17.790 million, up from $3.411 million in Q3 2023, a 421.5% increase[9] - Net unrealized holding gains on debt securities available for sale in Q3 2024 were $15.142 million, compared to a loss of $18.569 million in Q3 2023[9] - Reclassification adjustment for items included in net income in Q3 2024 was $51.017 million, compared to a loss of $268 thousand in Q3 2023[9] - Net loss attributable to Amerant Bancorp Inc. for the three months ended September 30, 2024, was $48.164 million, compared to a net income of $22.119 million for the same period in 2023[163] - Net loss before attribution of noncontrolling interest for the nine months ended September 30, 2024, was $32.6 million, compared to a net income of $48.7 million in the same period in 2023[16] - Provision for credit losses increased to $50.6 million in 2024 from $48.8 million in 2023[16] - Securities losses, net, significantly increased to $68.7 million in 2024 from $11.0 million in 2023[16] - Net cash provided by operating activities decreased to $4.7 million in 2024 from $41.0 million in 2023[16] - Net increase in loans was $788.6 million in 2024, compared to $271.0 million in 2023[16] Stockholders' Equity and Capital - Stockholders' equity rose to $902.89 million from $736.07 million year-over-year[5] - Retained earnings decreased to $569.13 million from $610.80 million year-over-year[5] - Accumulated other comprehensive loss improved to -$12.96 million from -$70.80 million year-over-year[5] - Common stock issuance in Q3 2024 raised $155.750 million, significantly boosting additional paid-in capital to $342.508 million[11] - Dividends paid totaled $9.038 million over the nine months ended September 30, 2024[11] - Stock-based compensation expense amounted to $4.245 million for the nine-month period[11] - Treasury stock repurchases totaled $7.556 million during the nine-month period[11] - Shares outstanding increased to 42,103,623 by September 30, 2024, up from 33,603,242 at the end of 2023[11] - Total stockholders' equity decreased from $705.7 million at December 31, 2022, to $719.8 million at September 30, 2023[14] - Net income attributable to Amerant Bancorp Inc. was $20.2 million for the three months ended March 31, 2023, $7.3 million for the three months ended June 30, 2023, and $22.1 million for the three months ended September 30, 2023[14] - Dividends paid totaled $3.0 million for each of the three months ended March 31, 2023, June 30, 2023, and September 30, 2023[14] - Stock-based compensation expense was $1.8 million for the three months ended March 31, 2023, $1.7 million for the three months ended June 30, 2023, and $1.5 million for the three months ended September 30, 2023[14] - Repurchase of Class A common stock totaled $566,000 for the three months ended March 31, 2023, $1.7 million for the three months ended June 30, 2023, and $2.7 million for the three months ended September 30, 2023[14] - Net loss attributable to noncontrolling interest shareholders was $244,000 for the three months ended March 31, 2023, $262,000 for the three months ended June 30, 2023, and $378,000 for the three months ended September 30, 2023[14] - Other comprehensive income was $6.3 million for the three months ended March 31, 2023, while other comprehensive loss was $12.6 million for the three months ended June 30, 2023, and $18.7 million for the three months ended September 30, 2023[14] Loans and Credit Quality - Loans held for investment, gross, increased to $6.964 billion as of September 30, 2024, from $6.873 billion as of December 31, 2023[5] - Loans pledged as collateral to secure advances from the FHLB amounted to $2.2 billion as of September 30, 2024 and December 31, 2023[71] - The company's securities pledged as collateral increased to $251.2 million as of September 30, 2024, up from $206.4 million as of December 31, 2023[68] - The company purchased single-family residential loans totaling $6.7 million in the three months ended September 30, 2024, and $17.9 million in the nine months ended September 30, 2024[74] - The company's international loans decreased to $41.7 million as of September 30, 2024, from $87.6 million as of December 31, 2023[73] - Total loans past due increased to $59.1 million as of September 30, 2024, compared to $67.3 million as of December 31, 2023[76][77] - Nonaccrual loans totaled $113.3 million as of September 30, 2024, up from $28.3 million as of December 31, 2023[79][80] - Loans held for sale increased to $597.8 million as of September 30, 2024, from $391.4 million as of December 31, 2023[82] - Commercial real estate loans held for investment were $2.0 billion in Florida, $175 million in Houston, $223 million in New York, and $54 million in other regions as of September 30, 2024[83] - Accrued interest receivable on total loans decreased to $41.6 million as of September 30, 2024, from $44.2 million as of December 31, 2023[84] - The ACL decreased by $15.6 million, or 16.3%, at September 30, 2024, compared to December 31, 2023, with the ACL as a percentage of total loans held for investment at 1.15%[90] - In the third quarter of 2024, the provision for credit losses on loans included $14.7 million to cover charge-offs, $2.3 million due to loan composition, and $0.8 million due to general credit quality and macroeconomic factor updates[91] - In the first nine months of 2024, the provision for credit losses on loans included $37.2 million to cover charge-offs, $14.6 million in new specific reserves for non-performing loans, and $6.5 million due to loan composition and volume changes[92] - Net proceeds from sales of loans held for investment in the three months ended September 30, 2024, were $35.6 million, with $28.7 million from Real Estate and $6.96 million from Commercial[93] - Net proceeds from sales of loans held for investment in the nine months ended September 30, 2024, were $103.0 million, with $30.4 million from Real Estate and $72.6 million from Commercial[93] - The ACL balance at the end of the period for the three months ended September 30, 2024, was $79.9 million, with $16.9 million in Real Estate, $38.9 million in Commercial, and $24.0 million in Consumer and Others[85] - The ACL balance at the end of the period for the nine months ended September 30, 2024, was $79.9 million, with $16.9 million in Real Estate, $38.9 million in Commercial, and $24.0 million in Consumer and Others[86] - The ACL balance at the end of the period for the nine months ended September 30, 2023, was $98.8 million, with $39.1 million in Real Estate, $32.9 million in Commercial, and $26.8 million in Consumer and Others[87] - The provision for credit losses on loans in the nine months ended September 30, 2023, was $48.2 million, with $13.7 million in Real Estate, $20.6 million in Commercial, and $13.9 million in Consumer and Others[89] - The Company had no new loan modifications to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and 2023[95] - Total non-owner occupied commercial real estate loans amounted to $1,688,308 thousand as of September 30, 2024, with $1,652,018 thousand classified as "Pass" and $34,374 thousand as "Special Mention"[104] - Multi-family residential loans totaled $351,815 thousand, all classified as "Pass" with no special mention or classified loans[104] - Land development and construction loans reached $421,489 thousand, with $100,245 thousand originated in 2024 and $131,974 thousand in revolving loans[104] - Single-family residential loans stood at $1,499,599 thousand, including $1,486,055 thousand classified as "Pass" and $13,544 thousand as "Substandard"[104] - Owner-occupied commercial real estate loans totaled $1,001,762 thousand, with $942,849 thousand classified as "Pass" and $29,603 thousand as "Special Mention"[104] - Total commercial loans amounted to $1,630,318 thousand, including $1,548,447 thousand classified as "Pass" and $69,429 thousand as "Substandard"[106] - Loans to financial institutions and acceptances totaled $92,489 thousand, all classified as "Pass" with no special mention or classified loans[106] - Total consumer loans and overdrafts amount to $278.391 million, with the largest portion being $107.835 million[107] - Total loans held for investment, gross, amount to $6.964 billion, with the largest portion being $1.374 billion[107] - Nonowner occupied commercial real estate loans classified as "Pass" total $1.616 billion, with the largest portion being $564.003 million[108] - Multi-family residential loans classified as "Pass" total $407.206 million, with the largest portion being $119.550 million[108] - Land development and construction loans classified as "Pass" total $300.378 million, with the largest portion being $141.466 million[108] - Single-family residential loans classified as "Pass" total $1.463 billion, with the largest portion being $454.011 million[108] - Owner occupied loans classified as "Pass" total $1.155 billion, with the largest portion being $414.263 million[108] - Special Mention loans for owner occupied properties total $15.723 million, with the largest portion being $7.926 million[108] - Classified Substandard loans for single-family residential properties total $2.8 million, with the largest portion being $2.416 million[108] - Total owner occupied loans, including all classifications, amount to $1.175 billion, with the largest portion being $424.719 million[108] - Total loans held for investment, gross amounted to $6,873,493 thousand, with commercial loans making up $1,503,187 thousand and consumer loans totaling $391,200 thousand[109] - Quarter-to-date gross charge-offs for commercial loans were $31,416 thousand, while consumer loans and overdrafts accounted for $4,175 thousand[110] - Year-to-date gross charge-offs for commercial loans reached $47,294 thousand, and consumer loans and overdrafts totaled $21,122 thousand[111] - Total commercial loans classified as "Pass" amounted to $661,979 thousand, while "Special Mention" and "Substandard" categories were $30,261 thousand and $22,971 thousand, respectively[109] - Consumer loans classified as "Pass" were $115,810 thousand, with only $41 thousand classified as "Substandard"[109] - Total loans to financial institutions and acceptances were $13,375 thousand, all classified as "Pass"[109] - Quarter-to-date gross charge-offs for real estate loans were minimal, with no significant amounts reported[110] - Year-to-date gross charge-offs for real estate loans were $591 thousand, primarily from multi-family residential loans[111] - Total year-to-date gross charge-offs across all loan categories were $69,007 thousand[111] - Total Quarter-To-Date Gross Charge-Offs for 2023 amounted to $15.819 million, with Commercial loans contributing $9.288 million and Consumer loans and overdrafts contributing $6.441 million[112] - Total Year-To-Date Gross Charge-Offs for 2023 reached $39.233 million, with Commercial loans accounting for $18.715 million and Consumer loans and overdrafts accounting for $20.389 million[113] - Collateral-dependent loans as of September 30, 2024, totaled $103.302 million, with Commercial real estate loans at $29.639 million and Commercial loans at $68.285 million[115] Deposits and Time Deposits - Time deposits in denominations of $100,000 or more increased to $1.4 billion at September 30, 2024, from $1.3 billion at December 31, 2023[119] - Time deposits in denominations of more than $250,000 rose to $758 million at September 30, 2024, from $693 million at December 31, 2023[119] - Brokered time deposits decreased to $702 million at September 30, 2024, from $720 million at December 31, 2023[119] - Large time deposits maturing in less than 3 months increased to $403.429 million (28.8%) at September 30, 2024, from $178.102 million (13.7%) at December 31, 2023[120] - Large time deposits maturing in 3 to 6 months increased to $458.906 million (32.7%) at September 30, 2024, from $239.843 million (18.4%) at December 31, 2023[120] - Large time deposits maturing in 6 to 12 months decreased to $373.825 million (26.7%) at September 30, 2024, from $698.897 million (53.6%) at December 31, 2023[120] - Large time deposits maturing in 1 to 3 years decreased to $141.167 million (10.1%) at September 30, 2024, from $174.792 million (13.4%) at December 31, 2023[120] Securities and Investments - Securities held by the company totaled $1.543 billion as of September 30, 2024, compared to $1.497 billion as of December 31, 2023[5] - The company held $6.9 million in US Treasury Bills as of September 30, 2024, with an average yield of 5.22%[45] - Restricted cash balances decreased to $10.1 million as of September 30, 2024, from $25.8 million at December 31, 2023[46] - Total debt securities available for sale as of September 30, 2024, had an amortized cost of $1.495 billion and an estimated fair value of $1.476 billion, with unrealized losses of $26.5 million[48] - Residential mortgage-backed securities as of September 30, 2024, had an amortized cost of $1.2 billion and a fair value of $1.1 billion[48] - Commercial mortgage-backed

Financial Data and Key Metrics - The company recorded a substantial charge to earnings, leading to a loss of $48.2 million for the quarter, primarily due to the repositioning of the investment portfolio and write-downs on other real estate owned [4] - Core pre-provision net revenue (PPNR) was strong at $31.3 million, excluding non-routine items [4] - Total assets reached $10.38 billion, crossing the $10 billion mark, an increase from $9.75 billion in the previous quarter [6] - Total gross loans increased by $239.1 million to $7.56 billion, driven by organic loan growth [7] - Total deposits increased by $294.9 million to $8.11 billion, with strong organic deposit growth [7] - The total capital ratio improved to 12.66%, and CET1 ratio increased to 10.6% [8] - Diluted loss per share was $1.43, compared to $0.15 diluted income per share in the previous quarter [9] - Net interest margin decreased slightly to 3.49% from 3.56% in the previous quarter [9] - Provision for credit losses was $19 million, slightly down from $19.2 million in the previous quarter [10] Business Line Performance - The single-family residential portfolio increased by $125.4 million to $1.6 billion [18] - Consumer loans decreased by $18 million to $278.4 million, with a focus on higher-yielding indirect loans [18] - The CRE portfolio showed a conservative weighted average loan-to-value of 58% and strong sponsorship profiles [19] - Nonperforming loans increased to 152 basis points, up from 138 basis points in the previous quarter [20] - The allowance for credit losses decreased by $14.5 million to $79.9 million, with a coverage ratio of 0.7x for nonperforming loans [21] Market Performance - Domestic deposits increased by $271.4 million to $5.6 billion, while international deposits increased by $23.5 million to $2.6 billion [25] - Core deposits, excluding time deposits, increased by $202 million to $5.7 billion [26] - Assets under management increased by $98.7 million to $2.6 billion, driven by market valuations and net new assets [12] Strategic Direction and Industry Competition - The company is focused on achieving a 60% efficiency ratio, 1% ROA, and 12% ROE by the second half of 2025 [34] - Expansion in Florida includes new banking centers in Miami Beach and Tampa, with expected openings by mid-2025 [36] - The company is actively recruiting relationship officers in South Florida and Tampa to support growth [37] - The international banking segment is being separated from consumer banking to focus more on this important business area [37] Management Commentary on Operating Environment and Future Outlook - The company expects NIM to improve to the mid-3.50s in Q4 and between 3.55% and 3.60% in the first half of 2025 [42] - Core noninterest income is expected to be around $17.5 million to $18 million in Q4, with operating expenses remaining at approximately $68.5 million [33] - The company anticipates provision for credit losses to be around $8 million to $9 million in Q4, with asset growth driving at least $5 million of this amount [33] - The company is working on reducing nonperforming loans and special mention loans by the end of Q4 [38] Other Important Information - The company completed a public offering of 8,684,210 shares of Class A voting common stock, raising approximately $165 million in gross proceeds [11] - The company paid a quarterly cash dividend of $0.09 per common share and approved another dividend of $0.09 per share payable in November 2024 [12] - The company increased its borrowing capacity to $2.6 billion after transferring additional loan collateral [12] Q&A Session Summary Question: Loan Growth Expectations - The company expects strong loan growth in Q4, driven by organic relationship-driven growth and new hires across various business lines [39][40] - The loan pipeline for Q4 is aligned with previous guidance of 10%+ annualized growth [37] Question: Net Interest Margin (NIM) and Deposit Beta - The company expects NIM to improve to the mid-3.50s in Q4 and between 3.55% and 3.60% in the first half of 2025, driven by new loan production and securities repositioning [41][42] - Deposit beta is expected to be around 40 to 45 basis points in the short term, with international deposits less impacted by rate cuts [46] Question: International Banking Strategy - The company is focusing more on international banking as a key source of funding, with plans to grow both domestic and international AUM [44][48] Question: Expense Growth and Credit Trends - Core expense growth into 2025 is expected to be reallocated towards business growth in Florida, with a normalized charge-off rate of 30 to 40 basis points in 2025 [51][53] Question: Payoffs and Prepayment Penalties - The company has not seen significant payoffs, with prepayment penalties generally applied within the first year of loan contracts [49][50]