
Financial Performance - Net income for Q4 2024 was $16.4 million, or $0.58 per diluted share, down from $24.0 million, or $0.94 per diluted share in Q4 2023[1][4] - Adjusted net income for Q4 2024 was $24.3 million, or $0.86 per diluted share[1][6] - Full year 2024 net income was $75.6 million, or $2.69 per diluted share, down from $103.5 million, or $4.08 per diluted share in 2023[1][21] - Net income decreased to $75,628,000 in 2024 from $103,533,000 in 2023, a decline of 27.0%[50] - Diluted earnings per share fell to $2.69 in 2024, down from $4.08 in 2023, representing a decrease of 34.2%[50] - Diluted earnings per share (GAAP) for Q4 2024 was $0.58, down from $0.94 in Q4 2023, indicating a decline of 38.3%[71] - Adjusted diluted earnings per share (non-GAAP) for Q4 2024 was $0.86, compared to $0.53 in Q4 2023, marking a 62.3% increase[71] Revenue and Income Sources - Total revenue for 2024 was $386.7 million, with net interest income of $296.9 million and noninterest income of $89.8 million[1][27] - Noninterest income totaled $21.6 million in Q4 2024, a decrease of $0.4 million from the prior quarter, with mortgage banking income increasing by $0.8 million[1][12] - Noninterest income increased to $89,792,000 in 2024, up from $79,092,000 in 2023, reflecting a growth of 13.5%[50] - Treasury management service fees increased by $3.1 million in 2024, contributing to noninterest income as a percentage of total revenue rising to 23.2% from 21.2% in 2023[29] Expenses and Efficiency - Noninterest expense totaled $264.0 million in 2024, an increase of $41.2 million from 2023, primarily due to a $21.8 million rise in salaries and benefits[29][30] - The efficiency ratio for 2024 was 68.28%, up from 59.81% in 2023, while the adjusted efficiency ratio was 64.13% compared to 59.81% in 2023[31] - The efficiency ratio for Q4 2024 was 74.66%, compared to 65.83% for the prior quarter[1][15] - Adjusted total noninterest expense for Q4 2024 is $62,793,000, compared to $52,308,000 in Q4 2023[73] Asset and Deposit Growth - Average deposits increased by $48.7 million in Q4 2024, or 3.0% on an annualized basis, totaling $6.6 billion[1][18] - Average deposits rose to $6.5 billion for the year ending December 31, 2024, an increase of $354.9 million or 5.8% from 2023[34] - Total deposits increased to $6,672,260 as of December 31, 2024, from $6,374,103 a year prior, marking a growth of 4.68%[54] - Total consolidated assets were reported at $8.1 billion as of December 31, 2024[40] - Total assets increased to $8,097,387,000 in 2024, up from $7,879,724,000 in 2023, a growth of 2.8%[50] Credit Quality and Losses - The provision for credit losses was $4.9 million in Q4 2024, influenced by macroeconomic factors and specific customer relationship deterioration[1][9] - Provision for credit losses rose significantly to $27,550,000 in 2024, compared to $18,247,000 in 2023, indicating an increase of 51.3%[50] - The allowance for credit losses as a percentage of total loans was 1.38% at December 31, 2024, an increase from 1.28% at December 31, 2023[1][26] - Nonperforming loans, including nonaccrual loans, rose to $69,050 thousand as of December 31, 2024, up from $65,824 thousand on September 30, 2024, indicating a 3.7% increase[69] Capital Ratios and Book Value - The common equity tier 1 risk-based capital ratio was 13.18% as of December 31, 2024, indicating strong capital ratios above "well-capitalized" thresholds[35] - Book value per share increased to $37.58 at December 31, 2024, up by $2.44 from the previous year[35] - Tangible book value per share (non-GAAP) increased to $33.94 as of December 31, 2024, from $30.96 a year earlier, representing a 9.6% increase[71] - Total stockholders' equity (GAAP) increased to $1,041,366 thousand as of December 31, 2024, up from $877,197 thousand a year earlier, representing an 18.7% year-over-year growth[71] Future Outlook and Strategy - The company plans to expand into the San Diego and Los Angeles markets, indicating future growth strategies[43]