Financial Data and Key Metrics Changes - The company achieved a record high net income of $61.4 million in 2018, up over 42% from 2017, driven by strong performance and benefits from the Jobs and Tax Act [5] - Net income for Q4 2018 increased to $16 million, up 118% compared to $7.4 million for Q4 2017, with a return on average assets and average equity of 1.30% and 13.18% respectively [10] - The effective tax rate decreased to 18.9% in Q4 2018 from 62.6% in the same period a year ago, aided by a tax planning strategy [12] Business Line Data and Key Metrics Changes - The loan portfolio reached an all-time high of almost $3.9 billion, primarily driven by growth in the residential mortgage portfolio, which increased by $256 million or 8.2% in Q4 2018 compared to the same period in 2017 [6][13] - Non-interest income for Q4 2018 was $4.5 million, consistent with the previous quarter, with the Financial Services division being the most significant source of non-interest income [26] Market Data and Key Metrics Changes - Total average deposits increased by $77.1 million or 1.86% for Q4 2018 compared to the same period a year earlier, with the cost of interest-bearing deposits rising to 60 basis points from 36 basis points [19][20] - The net interest margin increased to 3.38% from 3.29% compared to Q4 2017, reflecting growth in the loan portfolio and Fed rate hikes [22] Company Strategy and Development Direction - The company continues to focus on traditional lending and conservative balance sheet management, which has enabled consistent high-quality recurring earnings [15] - The management is exploring various initiatives regarding capital management, including potential dividend increases and share buybacks [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2019, acknowledging that not every year can be record-breaking but remaining positive about future performance [8] - The company expects cash flow from the loan portfolio to generate between $375 million and $475 million over the next 12 months, providing significant opportunity and flexibility moving into 2019 [18] Other Important Information - The efficiency ratio for Q4 2018 was 55.06%, compared to 53.13% in Q4 2017, with a focus on identifying opportunities for process efficiency [30] - The consolidated tangible equity to tangible assets ratio improved to 9.87% at the end of Q4 2018, up from 9.33% in the same period in 2017 [31] Q&A Session Summary Question: Capital management and focus for 2019 - The management indicated that all options regarding capital management, including dividend increases and buybacks, are on the table for 2019 [43] Question: Strategy for deposits and liquidity management - The management described a mixed strategy for deposits, focusing on short maturities for CDs and capitalizing on customer opportunities in the Florida market [46][47] Question: Margin expansion and cash position management - The management confirmed that the reduction in cash position was part of a long-term execution plan, and they are comfortable with the current level, with potential for growth if opportunities arise [50]