Core Insights - Amerant Bancorp Inc. reported $101.8 million in revenue for Q3 2024, a year-over-year increase of 1.3% [1] - The EPS for the same period was $0.27, down from $0.64 a year ago, with a surprise of +17.39% compared to the consensus estimate of $0.23 [1] - The revenue exceeded the Zacks Consensus Estimate of $99.39 million by +2.43% [1] Financial Metrics - Net charge-offs / Average total loans held for investment stood at 1.9%, slightly above the 1.8% average estimate [2] - Efficiency Ratio was reported at 228.7%, significantly higher than the 70.6% average estimate [2] - Net interest margin was consistent at 3.5%, matching the average estimate [2] - Average Balances - Total interest-earning assets were $9.23 billion, slightly below the average estimate of $9.30 billion [2] - Total Non-Performing Loans reached $114.93 million, higher than the estimated $113.21 million [2] - Total Non-Performing Assets were reported at $129.44 million, exceeding the average estimate of $122.21 million [2] - Noninterest income was $20.80 million, surpassing the average estimate of $18.04 million [2] - Net interest income was $81 million, slightly below the average estimate of $81.35 million [2] Stock Performance - Shares of Amerant Bancorp have returned -2.7% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market [3]

Company Performance - Amerant Bancorp Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, but down from $0.64 per share a year ago, indicating a 57.81% year-over-year decline [1] - The earnings surprise for the quarter was 17.39%, while the previous quarter saw a negative surprise of -20% with actual earnings of $0.28 against an expectation of $0.35 [1] - The company achieved revenues of $101.8 million for the quarter, surpassing the Zacks Consensus Estimate by 2.43% and showing a slight increase from $100.5 million in the same quarter last year [1] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32, with expected revenues of $103.77 million, while the estimate for the current fiscal year is $1.15 on revenues of $394.49 million [4] - The trend of estimate revisions for Amerant Bancorp has been unfavorable, resulting in a Zacks Rank of 5 (Strong Sell), suggesting expected underperformance in the near future [4] Industry Context - The Banks - Southeast industry, to which Amerant Bancorp belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [5] - The performance of Amerant Bancorp's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [5]

Core Viewpoint - Amerant Bancorp Inc. (AMTB) is expected to report a year-over-year decline in earnings and revenues for the quarter ended September 2024, with the consensus outlook indicating potential volatility in stock price based on actual results compared to estimates [1]. Earnings Expectations - The consensus estimate for Amerant Bancorp's quarterly earnings is $0.23 per share, reflecting a year-over-year decrease of 64.1% [2]. - Revenues are projected to be $99.39 million, which is a decline of 1.1% from the same quarter last year [2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 26.36%, indicating a reassessment by analysts [3]. - The Most Accurate Estimate for Amerant Bancorp matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [6]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a focus on the Most Accurate Estimate [4]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [5]. Historical Performance - In the last reported quarter, Amerant Bancorp was expected to earn $0.35 per share but only achieved $0.28, resulting in a surprise of -20% [8]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [8]. Overall Assessment - Amerant Bancorp does not appear to be a compelling candidate for an earnings beat based on current estimates and Zacks Rank [9]. - Investors are advised to consider other factors beyond earnings results when evaluating the stock ahead of its earnings release [9].

Core Viewpoint - Three stocks have been added to the Zacks Rank 24 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions [1] Company Summaries - **Amerant Bancorp Inc. (AMTB)**: The bank holding company for Amerant Bank has seen its current year earnings estimate revised downward by 13.5% over the last 60 days [1] - **Avis Budget Group, Inc. (CAR)**: This car and truck rental company has experienced a 12.7% downward revision in its current year earnings estimate over the past 60 days [1] - **Bassett Furniture Industries, Incorporated (BSET)**: The home furnishings company has faced a significant downward revision of 71.9% in its current year earnings estimate over the last 60 days [1]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Carter Bankshares (CARE) is a bank holding company which offer checking, savings, retirement, money market accounts, longer-term certificates of deposit as well as loans. The Zacks Consensus Estimate for its current year earnings has been revised almost 68.6% downward over the last 60 days.Amerant Bancorp (AMTB) is a bank holding company which provides deposit, credit and wealth management services to individuals and businesses primar ...

Company Overview - Amerant Bank has appointed Sterling Harrell as EVP, Broward Market President, bringing extensive experience in commercial banking and financial management [1][2] - The bank's new regional headquarters is located in Plantation, FL, which is part of its strategy to enhance its presence in Broward County [1][3] Leadership and Strategy - Sterling Harrell previously served as Managing Director - Middle Market Florida for TD Bank, showcasing a strong track record in developing relationship-based strategies [1][3] - The appointment of Harrell is part of Amerant's commitment to growth in Broward County and South Florida, as stated by Jerry Plush, Chairman and CEO [2] Community Engagement - Amerant Bank recently hosted a private client reception at its new Broward regional office, emphasizing its role in local economic development [3] - The bank has over half of its workforce, which exceeds 600 members, based in Broward County, highlighting its significant local presence [3] Company Background - Amerant Bank is the largest community bank headquartered in Florida and operates as a subsidiary of Amerant Bancorp Inc. [4] - The bank has been serving clients for over 40 years and is involved in supporting various non-profit and community organizations [4]

Core Viewpoint - Three stocks have been added to the Zacks Rank 24 (Strong Sell) List due to downward revisions in their earnings estimates over the past 60 days [1] Company Summaries - **Amerant Bancorp Inc. (AMTB)**: A bank holding company for Amerant Bank, with a nearly 7% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - **Beazer Homes USA, Inc. (BZH)**: A home-builder constructing single and multi-family homes, which has seen a 9.5% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - **CONMED Corporation (CNMD)**: A medical technology company selling surgical devices, with a 7.2% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1]

Core Insights - Amerant Bank has announced a strategic partnership to become the Official Bank of Fort Lauderdale United FC, the only professional women's soccer team in South Florida, participating in the USL Super League's inaugural season [1][2] - The partnership emphasizes Amerant Bank's commitment to supporting women and advancing women's sports, including initiatives that benefit local youth soccer programs [1][2] - This partnership follows Amerant Bank's recent unveiling of its brand ambassador, Averee Dovsek, a top-ranked world long drive golf professional, highlighting the bank's dedication to elevating female athletes [2] Company Overview - Amerant Bank is the largest community bank headquartered in Florida, with a presence in South Florida, Tampa, and Houston, serving clients for over 40 years [3] - The bank supports numerous nonprofit and community organizations and was certified as a Most Loved Workplace® in 2024 [3] Fort Lauderdale United FC Overview - Fort Lauderdale United FC, formed in 2023, is a division 1 professional women's soccer team dedicated to empowering talent and fostering community engagement through soccer [4] - The club aims to redefine the path to professional soccer by promoting inclusivity, athletic prowess, and community involvement [4]

Total Assets and Liabilities - Total assets increased to $9.747 billion as of June 30, 2024, compared to $9.716 billion at the end of 2023[6] - Loans held for investment decreased to $6.711 billion from $6.873 billion year-over-year[6] - Total deposits slightly decreased to $7.816 billion from $7.895 billion[6] - Advances from the Federal Home Loan Bank increased to $765 million from $645 million[6] - Securities portfolio increased to $1.548 billion from $1.497 billion[6] - Loans held for sale increased significantly to $551.8 million from $365.2 million[6] - Cash and cash equivalents decreased to $310.3 million from $321.9 million[6] - Operating lease right-of-use assets decreased to $100.6 million from $118.5 million[6] - Total stockholders' equity increased from $736.068 million at December 31, 2023, to $738.085 million at March 31, 2024, and then slightly decreased to $734.342 million at June 30, 2024[15] - Total stockholders' equity before noncontrolling interest was $731.390 million at March 31, 2023, and $723.552 million at June 30, 2023[19] Earnings and Income - Total interest income for Q2 2024 increased to $146.4 million, up from $138.5 million in Q2 2023[9] - Net interest income for Q2 2024 decreased to $79.4 million, down from $83.9 million in Q2 2023[9] - Provision for credit losses for Q2 2024 decreased to $19.2 million, down from $29.1 million in Q2 2023[9] - Noninterest income for Q2 2024 decreased to $19.4 million, down from $26.6 million in Q2 2023[9] - Net income attributable to Amerant Bancorp Inc. for Q2 2024 decreased to $4.96 million, down from $7.31 million in Q2 2023[9] - Basic earnings per common share for Q2 2024 decreased to $0.15, down from $0.22 in Q2 2023[12] - Total interest income for the first six months of 2024 increased to $291.0 million, up from $263.6 million in the same period of 2023[9] - Net interest income for the first six months of 2024 decreased to $157.3 million, down from $166.2 million in the same period of 2023[9] - Net income attributable to Amerant Bancorp Inc. for the first six months of 2024 decreased to $15.5 million, down from $27.5 million in the same period of 2023[9] - Basic earnings per common share for the first six months of 2024 decreased to $0.46, down from $0.82 in the same period of 2023[12] - Net income attributable to Amerant Bancorp Inc. was $10.568 million for the period ending March 31, 2024, and $4.963 million for the period ending June 30, 2024[15] - Net income before attribution of noncontrolling interest decreased to $15.531 million in the first half of 2024 from $26.988 million in the same period of 2023[22] Dividends and Stock Repurchases - Dividends paid were $3.011 million for the period ending March 31, 2024, and $3.023 million for the period ending June 30, 2024[15] - Repurchase of Class A common stock amounted to $4.448 million for the period ending June 30, 2024[15] - Stock-based compensation expense was $1.635 million for the period ending March 31, 2024, and $1.404 million for the period ending June 30, 2024[15] - Shares outstanding for Class A common stock increased from 33,603,242 at December 31, 2023, to 33,709,395 at March 31, 2024, and then decreased to 33,562,756 at June 30, 2024[15] - The company repurchased 200,652 shares of Class A common stock at a weighted average price of $22.17 per share, totaling $4.4 million, in the three and six months ended June 30, 2024[39] - The company declared and paid dividends of $0.09 per share, totaling $3.0 million, in both the three and six months ended June 30, 2024 and 2023[44] Credit Losses and Allowances - Provision for credit losses decreased to $31.550 million in the first half of 2024 from $40.777 million in the same period of 2023[22] - The Allowance for Credit Losses (ACL) for loans as of June 30, 2024, was $94,400 thousand, with a provision for credit losses of $17,650 thousand for the three months ended June 30, 2024[108] - The ACL (Allowance for Credit Losses) decreased by $1.1 million, or 1.2%, at June 30, 2024, compared to December 31, 2023[113] - The ACL as a percentage of total loans held for investment was 1.41% at June 30, 2024, compared to 1.39% at December 31, 2023[113] - In the second quarter of 2024, the provision for credit losses on loans included $12.8 million to cover charge-offs and $12.7 million in new specific reserves for non-performing loans[113] - The provision for credit losses on loans in the first half of 2024 included $24.5 million to cover charge-offs and $12.7 million in new specific reserves for non-performing loans[114] - The allowance for credit losses for off-balance sheet exposures increased to $4,602 thousand as of June 30, 2024, up from $2,002 thousand in the same period in 2023[188] Loans and Loan Portfolio - Total loans held for investment, gross, were $6.711 billion as of June 30, 2024 and $6.873 billion as of December 31, 2023[88] - Loans with outstanding principal balances of $2.5 billion were pledged as collateral to secure advances from the FHLB as of June 30, 2024 and December 31, 2023[89] - International loans totaled $43.8 million as of June 30, 2024 and $87.6 million as of December 31, 2023[89] - Total past due loans were $65.337 million as of June 30, 2024, with $25.272 million greater than 90 days past due[93] - Total real estate loans as of December 31, 2023, amounted to $6,873,493 thousand, with $67,328 thousand past due[94] - Nonaccrual loans as of June 30, 2024, totaled $97,050 thousand, with $3,902 thousand past due over 90 days and still accruing[98] - Loans held for sale as of June 30, 2024, were $611,950 thousand, compared to $391,419 thousand as of December 31, 2023[103] - Commercial real estate loans held for investment were $1.9 billion in Florida, $215 million in Houston, $221 million in New York, and $47 million in other regions as of June 30, 2024[104] - Accrued interest receivable on total loans was $36.4 million as of June 30, 2024, down from $44.2 million as of December 31, 2023[105] - Net proceeds from sales of loans held for investment totaled $4.681 million in the three months ended June 30, 2024, compared to $4.462 million in the same period in 2023[115] - Net proceeds from sales of loans held for investment totaled $67.396 million in the six months ended June 30, 2024, compared to $14.462 million in the same period in 2023[115] - The Company had no new loan modifications to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023[117] - The Company's internal risk rating system categorizes loans into five master risk categories, with ratings updated continuously based on credit quality[118] - Loans classified as "Nonclassified" are considered of sufficient quality, while "Classified" loans indicate potential credit weaknesses[122][123] - Loans classified as "Substandard" and "Doubtful" have significant credit weaknesses, with the latter having a high probability of loss[124][125] - Commercial real estate loans classified as "Pass" increased to $214.64 million in 2024 from $145.70 million in 2023, representing a 47.3% growth[130] - Multi-family residential loans classified as "Pass" rose to $10.47 million in 2024 from $1.85 million in 2023, a significant 466.2% increase[130] - Land development and construction loans classified as "Pass" decreased to $50.87 million in 2024 from $96.59 million in 2023, a 47.3% decline[130] - Single-family residential loans classified as "Pass" dropped to $161.01 million in 2024 from $338.80 million in 2023, a 52.5% decrease[130] - Owner-occupied loans classified as "Pass" fell to $93.64 million in 2024 from $180.14 million in 2023, a 48.0% reduction[130] - Total nonowner-occupied real estate loans reached $1.68 billion in 2024, with $214.64 million classified as "Pass"[130] - Total multi-family residential loans amounted to $359.26 million in 2024, with $10.47 million classified as "Pass"[130] - Total land development and construction loans stood at $343.47 million in 2024, with $50.87 million classified as "Pass"[130] - Total single-family residential loans were $1.45 billion in 2024, with $161.01 million classified as "Pass"[130] - Total owner-occupied loans reached $981.41 million in 2024, with $93.64 million classified as "Pass"[130] - Total commercial loans increased to $1,521,533 thousand in 2024, up from $1,428,027 thousand in 2023, reflecting a growth of 6.5%[133] - Loans to financial institutions and acceptances totaled $48,287 thousand in 2024, with $33,714 thousand classified as "Pass" under nonclassified credit risk rating[133] - Consumer loans and overdrafts reached $296,350 thousand in 2024, a decrease from $130,264 thousand in 2022, indicating a significant shift in portfolio composition[133] - Total loans held for investment, gross, amounted to $6,710,961 thousand in 2024, showing a steady increase from $1,139,469 thousand in 2021[133] - Special mention loans in commercial loans decreased to $25,671 thousand in 2024 from $13,696 thousand in 2022, reflecting improved credit quality[133] - Substandard loans in commercial loans rose to $67,835 thousand in 2024, up from $7,962 thousand in 2022, indicating higher credit risk exposure[133] - Revolving loans under amortized cost basis totaled $1,273,422 thousand in 2024, contributing significantly to the overall loan portfolio[133] - Non-real estate loans, including commercial and consumer loans, dominated the portfolio with a combined total of $1,817,883 thousand in 2024[133] - Total non-real estate loans for 2023 amounted to $1,503,187 thousand, with commercial loans making up $1,449,955 thousand of that total[138] - Pass-rated commercial loans increased to $414,882 thousand in 2023, up from $280,911 thousand in 2022[138] - Total single-family residential loans reached $1,466,608 thousand, with pass-rated loans accounting for $410,185 thousand in 2023[135] - Owner-occupied real estate loans totaled $1,175,331 thousand, with pass-rated loans at $221,137 thousand in 2023[135] - Multi-family residential loans stood at $407,214 thousand, with pass-rated loans at $1,860 thousand in 2023[135] - Land development and construction loans amounted to $300,378 thousand, with pass-rated loans at $71,157 thousand in 2023[135] - Special mention loans in the commercial category increased to $30,261 thousand in 2023, up from $28,205 thousand in 2022[138] - Substandard loans in the commercial category totaled $22,971 thousand in 2023, compared to $19,248 thousand in 2022[138] - Loans to financial institutions and acceptances remained stable at $13,375 thousand in 2023[138] - Total real estate loans, including nonowner-occupied, multi-family, and single-family, reached $1,616,200 thousand in 2023[135] - Total consumer loans and overdrafts amount to $391.2 million, with nonclassified loans making up $391.16 million and substandard loans at $41,000[139] - Total loans held for investment, gross, stand at $6.87 billion[139] - Quarter-to-date gross charge-offs for consumer loans and overdrafts total $6.76 million, with $4.59 million from 2022 and $1.45 million from 2021[141] - Year-to-date gross charge-offs for consumer loans and overdrafts reach $16.95 million, with $11.42 million from 2022 and $3.93 million from 2021[142] - Quarter-to-date gross charge-offs for commercial loans amount to $13.45 million, with $12.44 million from 2022 and $189,000 from 2021[141] - Year-to-date gross charge-offs for commercial loans total $15.88 million, with $14.28 million from 2022 and $237,000 from 2021[142] - Total quarter-to-date gross charge-offs across all loan categories are $20.21 million[141] - Total year-to-date gross charge-offs across all loan categories reach $33.42 million[142] - Quarter-to-date gross charge-offs for consumer loans and overdrafts in 2023 amount to $7.63 million, with $3.17 million from 2022 and $3.36 million from 2021[144] - Total quarter-to-date gross charge-offs for all loan categories in 2023 are $9.09 million[144] - Year-To-Date Gross Charge-Offs for consumer loans and overdrafts reached $13,948 thousand, with $399 thousand in 2023 and $6,062 thousand in 2022[145] - Total Year-To-Date Gross Charge-Offs amounted to $23,414 thousand, with $399 thousand in 2023 and $14,836 thousand in 2022[145] - Collateral-dependent loans totaled $98,536 thousand as of June 30, 2024, with specific reserves of $17,330 thousand[148] Deposits and Borrowings - Time deposits in denominations of $100,000 or more amounted to approximately $1.3 billion at June 30, 2024[151] - Brokered time deposits amounted to $700 million at June 30, 2024, down from $720 million at December 31, 2023[151] - Large time deposits maturing in less than 3 months increased to $433,791 thousand (32.7%) at June 30, 2024, up from $178,102 thousand (13.7%) at December 31, 2023[153] - Advances from the Federal Home Loan Bank totaled $765,000 thousand at June 30, 2024, up from $645,000 thousand at December 31, 2023[157] Derivatives and Hedging - Interest rate swaps designated as cash flow hedges have a notional amount of $114.2 million with 6 contracts, resulting in unrealized gains of $0.2 million in Q2 2024 and $0.4 million in the first six months of 2024[163] - The company entered into an interest rate swap contract with a notional amount of $50.0 million in Q2 2023 to manage interest rate risk on variable rate loans[164] - Total derivatives not designated as hedging instruments amount to $3.23 billion with 479 contracts, including $2.36 billion in interest rate swaps and $651.99 million in interest rate caps[161] - The company terminated 16 interest rate swaps in 2019, recognizing cumulative net unrealized gains of $8.9 million over the remaining life of the swaps[164] - In April 2022, the company entered into four interest rate cap contracts with a total notional amount of $140.0 million, which were partially offset by third-party broker contracts[169] - Mortgage derivatives, including interest rate lock commitments and forward contracts, had a notional amount of $112.4 million with 147 contracts, resulting in an unrealized gain of $0.2 million in Q2 2024[170] - The company held $31.5 million in cash as collateral for derivative arrangements as of June 30, 2024, up from $25.0 million at the end of 2023[172] Investments and Securities - Debt securities available for sale had an amortized cost of $1,377,134,000 and an estimated fair value of $1,269,356,000 at June 30, 2024[59] - Investments in foreign corporate debt securities available for sale were $10.4 million at June 30, 2024, primarily in Canada[61] - Proceeds from sales, redemptions, and calls of debt securities available for sale were $2.88 million for the three months ended June 30, 2024, compared to $765 thousand in the same period in 2023[62] - Gross realized losses for the six months ended June 30, 2024, were $120 thousand, significantly lower than the $10.76 million in the same period in 202

Financial Data and Key Metrics - Core business demonstrated strong performance with solid loan growth, improved net interest margin (NIM), and higher non-interest income (NII) [6] - Total deposits declined by $62.2 million, but organic deposit growth nearly offset the runoff of higher-cost municipal deposits and reductions in two large corporate deposit relationships [6] - Total loans increased by $316.5 million, driven by organic loan growth, with a strong pipeline for Q3 2024 [9] - Non-interest income increased to $19.4 million, primarily driven by higher income from loan derivatives in the mortgage business [10] - Non-interest expenses increased to $73.3 million, but excluding non-routine transaction costs, they remained at $67.7 million, comparable to the prior quarter [10] - Diluted income per share for Q2 was $0.15 compared to $0.31 in Q1, primarily due to increased provision for credit losses [12] - Net interest margin (NIM) improved to 3.56% in Q2 from 3.51% in Q1, driven by higher-yielding loan production and lower deposit costs [12] - Provision for credit losses was $19.2 million, up $6.8 million from Q1, with one legacy credit accounting for $8 million of the increase [13] - Total assets were $9.75 billion at the end of Q2, slightly down from $9.82 billion in Q1 [13] - Total capital ratio at the end of Q2 was 12%, down from 12.49% in Q1, with CET1 at 9.7% compared to 10.10% in Q1 [14] Business Line Performance - Loan portfolio growth was driven by organic, relationship-driven growth, with single-family residential loans increasing by $107.4 million to $1.6 billion in Q2 [21] - Consumer loans decreased by $41.3 million or 12.2% quarter-over-quarter, with indirect consumer loans expected to mostly run off by Q1 2025 [22] - Commercial real estate (CRE) portfolio has a conservative weighted average loan-to-value of 58% and debt service coverage of 1.3x, with 30% of the portfolio in top-tier borrowers [23] - Non-performing loans increased to 438 basis points compared to 43 basis points in Q1, primarily due to downgrades of larger commercial loans [23] Market Performance - Domestic deposits accounted for 68% of total deposits, totaling $5.3 billion, slightly down by $6.8 million or 0.1% compared to Q1 [18] - International deposits accounted for 32% of total deposits, totaling $2.5 billion, down $55.5 million or 2.1% compared to Q1 [18] - Core deposits, excluding time deposits, were $5.5 billion, a decrease of $127.8 million or 2.3% compared to Q1 [19] Company Strategy and Industry Competition - The company is focused on executing its strategic plan, including the sale of its Houston franchise, expected to close in Q4 2024 [9] - Expansion in Florida includes the opening of a new banking center in Downtown Miami and hiring new market presidents for Palm Beach and Central Florida [11] - The company is positioning its balance sheet for potential interest rate cuts, with 51% of loans having floating rate structures and 58% repricing within a year [32] - The company expects to achieve a 1% ROA and 12% ROE target, with the efficiency ratio potentially sliding to 60% by Q1 2025 [37] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about resolving downgraded credits, particularly a $26.8 million C&I legacy loan and a $28.2 million owner-occupied loan [7][8] - The company expects NIM to remain stable in Q3, with non-interest income around $17 million and operating expenses at $68 million [36] - Management anticipates charge-offs to normalize to around 30 basis points by early 2025, excluding indirect consumer loans [44] Other Important Information - The company repurchased 200,652 shares for $4.4 million in Q2 at an average price of $22.17 per share [11] - The Board of Directors approved a dividend of $0.09 per share payable on August 30, 2024 [15] Q&A Session Summary Credit Quality and Charge-offs - Management discussed the downgraded credits, expressing confidence in positive outcomes for the larger commercial loans [42][43] - Charge-offs are expected to be around 25-30 basis points excluding indirect consumer loans, with normalization expected by early 2025 [44] Loan and Deposit Growth - The company targets a 95% loan-to-deposit ratio, with loan growth driven by organic production and new business development personnel [46][48] - Deposit growth is expected to pick up to fund projected loan growth, with a focus on maintaining the 95% target [46] Houston Sale and Cost Savings - The Houston sale is expected to close in Q4 2024, with potential cost savings from redeploying team members to focus on Florida growth [57][59] - Expenses are expected to normalize around $68 million post-Houston transaction, with reinvestment in Florida expansion [61][62] Interest Rate Sensitivity and NIM - The company is preparing for a downward rate trend by incorporating floor rates in loan production and using hedging strategies [72] - NIM was slightly impacted by interest accrual reversals due to non-accrual loans, but the impact was not significant [73] Share Buybacks - The company repurchased shares in Q2 and has $15.6 million remaining under the current authorization, with plans to continue buybacks based on capital needs and growth plans [76][77]