Amerant Bancorp (AMTB) - 2025 Q2 - Quarterly Results

2Q25 Financial Highlights Net Income and EPS Amerant Bancorp Inc. reported a significant increase in net income attributable to the Company and diluted EPS for Q2 2025 compared to Q1 2025, driven by higher core pre-provision net revenue and a lower provision for credit losses Net Income and EPS (in millions, except per share amounts) | Metric | 2Q25 | 1Q25 | Change (QoQ) | Change (%) | | :-------------------------------- | :----- | :----- | :----------- | :--------- | | Net Income Attributable to Company | $23.0M | $12.0M | +$11.0M | +91.7% | | Diluted EPS | $0.55 | $0.28 | +$0.27 | +96.4% | - The improved results were driven by higher core pre-provision net revenue combined with a lower provision for credit losses[2] Key Financial and Operational Metrics (QoQ Changes) Amerant experienced growth in total assets, investment securities, and deposits, alongside improvements in asset quality and profitability ratios, and declared a quarterly cash dividend Key Financial and Operational Metrics (QoQ Changes) | Metric | 2Q25 (Value) | 1Q25 (Value) | Change (QoQ) | Change (%) | | :--------------------------- | :----------- | :----------- | :----------- | :--------- | | Total Assets | $10.3B | $10.2B | +$165.0M | +1.6% | | Total Gross Loans | $7.2B | $7.2B | -$30.0M | -0.4% | | Cash & Cash Equivalents | $636.8M | $648.4M | -$11.5M | -1.8% | | Investment Securities | $2.0B | $1.8B | +$209.2M | +11.9% | | Total Deposits | $8.3B | $8.2B | +$151.6M | +1.9% | | Core Deposits | $6.1B | $6.0B | +$150.6M | +2.5% | | FHLB Advances | $765.0M | $715.0M | +$50.0M | +7.0% | | Net Interest Margin (NIM) | 3.81% | 3.75% | +0.06% | - | | Average Yield on Loans | 6.88% | 6.84% | +0.04% | - | | Average Cost of Total Deposits | 2.53% | 2.60% | -0.07% | - | | Loan to Deposit Ratio | 86.5% | 88.5% | -2.0% | - | | Total Non-Performing Assets | $97.9M | $140.8M | -$42.9M | -30.5% | | Allowance for Credit Losses (ACL) | $86.5M | $98.3M | -$11.7M | -12.0% | | Assets Under Management (AUM) | $3.07B | $2.93B | +$132.4M | +4.5% | | Pre-provision Net Revenue (PPNR) | $35.9M | $33.9M | +$2.0M | +5.9% | | Core PPNR | $37.1M | $31.5M | +$5.6M | +17.7% | | Net Interest Income (NII) | $90.5M | $85.9M | +$4.6M | +5.3% | | Provision for Credit Losses | $6.1M | $18.4M | -$12.4M | -67.1% | | Non-interest Income | $19.8M | $19.5M | +$0.3M | +1.3% | | Non-interest Expense | $74.4M | $71.6M | +$2.8M | +4.0% | | Efficiency Ratio | 67.5% | 67.9% | -0.4% | - | | Return on Average Assets (ROA) | 0.90% | 0.48% | +0.42% | - | | Return on Average Equity (ROE) | 10.06% | 5.32% | +4.74% | - | - The Board of Directors declared a quarterly cash dividend of $0.09 per share of common stock, payable on August 29, 2025, to shareholders of record on August 15, 2025[3] Corporate Information Conference Call Details Amerant Bancorp Inc. will host an earnings conference call on July 24, 2025, to discuss its second quarter 2025 results, with webcast access and replay available via the Investor Relations website - An earnings conference call will be held on Thursday, July 24, 2025, at 8:30 a.m. (Eastern Time) to discuss 2Q25 results[5] - The conference call and presentation materials can be accessed via webcast from the Investor Relations section of the Company's website (https://investor.amerantbank.com), with an online replay available for approximately one month[5] About Amerant Bancorp Inc. Amerant Bancorp Inc. is a Florida-based bank holding company operating through Amerant Bank, N.A., Amerant Investments, Inc., and Amerant Mortgage, LLC, providing deposit, credit, and wealth management services with 20 banking centers - Amerant Bancorp Inc. (NYSE: AMTB) is a bank holding company headquartered in Coral Gables, Florida since 1979[6] - The Company operates through its main subsidiary, Amerant Bank, N.A., and other subsidiaries: Amerant Investments, Inc., and Amerant Mortgage, LLC[6] - It provides deposit, credit, and wealth management services to individuals and businesses, operating 20 banking centers (19 in South Florida and 1 in Tampa)[6] Cautionary Notice Regarding Forward-Looking Statements The press release contains forward-looking statements about future performance and objectives, which involve known and unknown risks and uncertainties that may cause actual results to differ materially - The press release contains forward-looking statements regarding future operating or financial performance, expectations, plans, and objectives[7] - These statements involve known and unknown risks, uncertainties, and other factors beyond the Company's control, which may cause actual results to differ materially[8] - Readers should not rely on forward-looking statements as predictions of future events and the Company does not commit to updating them, except as required by law. Risks are further described in the 2024 Form 10-K and other SEC filings[8][9] Interim Financial Information Note The unaudited interim financial information presented may not be indicative of the Company's full fiscal year results or financial condition - Unaudited financial information for interim periods (e.g., three and six months ended June 30, 2025 and 2024, and three months ended March 31, 2025, December 31, 2024, and September 30, 2024) may not reflect the full fiscal year results or financial condition as of December 31, 2025, or any other period[10] Non-GAAP Financial Measures Explanation and Use of Non-GAAP Measures The Company uses non-GAAP financial measures, such as PPNR and Core PPNR, to supplement GAAP results, believing they are useful for investors and management in evaluating performance - The Company supplements GAAP financial results with non-GAAP financial measures, including 'pre-provision net revenue (PPNR)', 'core pre-provision net revenue (Core PPNR)', 'core net income', 'core earnings per share', 'core return on assets (Core ROA)', 'core return on equity (Core ROE)', and 'core efficiency ratio'[11] - Management uses these non-GAAP measures to explain results to shareholders, the investment community, and for internal business evaluation, believing they provide useful insights into performance[12] - These non-GAAP measures are considered supplemental and not a substitute for or superior to GAAP financial information, and may differ from similar measures presented by other companies[12] Non-GAAP Financial Measures Reconciliation (Exhibit 2) Exhibit 2 provides a reconciliation of various non-GAAP financial measures to their GAAP equivalents, adjusting for non-core banking activities to offer a clearer view of underlying performance - The reconciliation adjusts for non-core banking activities such as the sale of loans and securities, Amerant Mortgage downsizing, the Houston Transaction, valuation adjustments, early repayment of FHLB advances, impairment of investments, and other non-routine actions[20] Core Pre-provision Net Revenue (Core PPNR) Reconciliation (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net income (loss) attributable to Amerant Bancorp Inc. | $23,002 | $11,958 | $16,881 | $(48,164) | $4,963 | | Plus: provision for credit losses | 6,060 | 18,446 | 9,910 | 19,000 | 19,150 | | Plus: provision for income tax expense (benefit) | 6,795 | 3,471 | 1,142 | (13,728) | 1,360 | | Pre-provision net revenue (loss) (PPNR) | 35,857 | 33,875 | 27,933 | (42,892) | 25,473 | | Plus: non-routine noninterest expense items | 1,192 | 534 | 15,148 | 5,672 | 5,562 | | (Less) plus: non-routine noninterest income items | 73 | (2,863) | (5,864) | 68,484 | (28) | | Core pre-provision net revenue (Core PPNR) | $37,122 | $31,546 | $37,217 | $31,264 | $31,007 | Core Net Income and EPS Reconciliation (in thousands, except percentages and per share amounts) | (in thousands, except percentages and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net income (loss) attributable to Amerant Bancorp Inc. | $23,002 | $11,958 | $16,881 | $(48,164) | $4,963 | | Total after-tax non-routine items in noninterest expense | 920 | 414 | 11,739 | 4,340 | 4,366 | | Total after-tax non-routine items in noninterest income (loss) | 62 | (2,219) | (7,460) | 53,073 | (22) | | Core net income | $23,984 | $10,153 | $21,160 | $9,249 | $9,307 | | Basic earnings (loss) per share | $0.55 | $0.28 | $0.40 | $(1.43) | $0.15 | | Plus: after tax impact of non-routine items in noninterest expense | 0.02 | 0.01 | 0.28 | 0.13 | 0.13 | | (Less) plus: after tax impact of non-routine items in noninterest income (loss) | — | (0.05) | (0.18) | 1.57 | — | | Total core basic earnings per common share | $0.57 | $0.24 | $0.50 | $0.27 | $0.28 | | Diluted earnings (loss) per share | $0.55 | $0.28 | $0.40 | $(1.43) | $0.15 | | Plus: after tax impact of non-routine items in noninterest expense | 0.02 | 0.01 | 0.28 | 0.13 | 0.13 | | (Less) plus: after tax impact of non-routine items in noninterest income (loss) | — | (0.05) | (0.18) | 1.57 | — | | Total core diluted earnings per common share | $0.57 | $0.24 | $0.50 | $0.27 | $0.28 | Selected Financial Information (Exhibit 1) Consolidated Balance Sheets (Summary) The summary balance sheet shows an increase in total assets, investments, and deposits, while total gross loans and allowance for credit losses saw slight decreases from the prior quarter Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total assets | $10,334,678 | $10,169,688 | $9,901,734 | $10,353,127 | $9,747,738 | | Total investments | 1,970,888 | 1,761,678 | 1,497,925 | 1,542,544 | 1,547,864 | | Total gross loans | 7,189,196 | 7,219,162 | 7,271,322 | 7,561,963 | 7,322,911 | | Allowance for credit losses | 86,519 | 98,266 | 84,963 | 79,890 | 94,400 | | Total deposits | 8,306,544 | 8,154,978 | 7,854,595 | 8,110,944 | 7,816,011 | | Core deposits | 6,143,625 | 5,993,055 | 5,620,150 | 5,707,366 | 5,505,349 | | Advances from FHLB | 765,000 | 715,000 | 745,000 | 915,000 | 765,000 | | Stockholders' equity | 924,286 | 906,263 | 890,467 | 902,888 | 734,342 | | Assets under management and custody | 3,065,020 | 2,932,602 | 2,890,048 | 2,550,541 | 2,451,854 | Consolidated Results of Operations (Summary) Net interest income and net income attributable to Amerant Bancorp Inc. increased significantly quarter-over-quarter, while provision for credit losses decreased substantially Consolidated Results of Operations Highlights (in thousands) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net interest income | $90,479 | $85,904 | $87,635 | $80,999 | $79,355 | | Provision for credit losses | 6,060 | 18,446 | 9,910 | 19,000 | 19,150 | | Noninterest income (loss) | 19,778 | 19,525 | 23,684 | (47,683) | 19,420 | | Noninterest expense | 74,400 | 71,554 | 83,386 | 76,208 | 73,302 | | Net income (loss) attributable to Amerant Bancorp Inc. | 23,002 | 11,958 | 16,881 | (48,164) | 4,963 | | Effective income tax rate | 22.80% | 22.50% | 6.34% | 22.18% | 21.51% | | Diluted earnings (loss) per common share | $0.55 | $0.28 | $0.40 | $(1.43) | $0.15 | | Cash dividend declared per common share | $0.09 | $0.09 | $0.09 | $0.09 | $0.09 | Other Financial and Operating Data (Ratios) Profitability, capital, liquidity, asset quality, and efficiency ratios all showed improvements quarter-over-quarter, with ROA and ROE significantly increasing Key Financial and Operating Ratios (%) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net interest income / Average total interest earning assets (NIM) | 3.81% | 3.75% | 3.75% | 3.49% | 3.56% | | Net income (loss)/ Average total assets (ROA) | 0.90% | 0.48% | 0.67% | (1.92)% | 0.21% | | Net income (loss)/ Average stockholders' equity (ROE) | 10.06% | 5.32% | 7.38% | (24.98)% | 2.68% | | Total capital ratio | 13.49% | 13.45% | 13.43% | 12.72% | 11.88% | | Tier 1 capital ratio | 11.97% | 11.84% | 11.95% | 11.36% | 10.34% | | Tier 1 leverage ratio | 9.69% | 9.73% | 9.66% | 9.56% | 8.74% | | Common equity tier 1 capital ratio (CET1) | 11.25% | 11.11% | 11.21% | 10.65% | 9.60% | | Loans to Deposits | 86.55% | 88.52% | 92.57% | 93.23% | 93.69% | | Non-performing assets / Total assets | 0.95% | 1.38% | 1.23% | 1.25% | 1.24% | | Non-performing loans / Total gross loans | 1.15% | 1.71% | 1.43% | 1.52% | 1.38% | | Efficiency ratio | 67.48% | 67.87% | 74.91% | 228.74% | 74.21% | Core Selected Consolidated Results of Operations and Other Data (Core Ratios) Core profitability metrics, including Core PPNR, Core Net Income, Core ROA, and Core ROE, demonstrated strong quarter-over-quarter growth, reflecting improved underlying operational performance Core Financial and Operating Ratios (in thousands, except percentages and per share amounts) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Pre-provision net revenue (loss) (PPNR) | $35,857 | $33,875 | $27,933 | $(42,892) | $25,473 | | Core pre-provision net revenue (Core PPNR) | $37,122 | $31,546 | $37,217 | $31,264 | $31,007 | | Core net income | $23,984 | $10,153 | $21,160 | $9,249 | $9,307 | | Core basic earnings per common share | 0.57 | 0.24 | 0.50 | 0.27 | 0.28 | | Core earnings per diluted common share | 0.57 | 0.24 | 0.50 | 0.27 | 0.28 | | Core net income / Average total assets (Core ROA) | 0.94% | 0.41% | 0.83% | 0.37% | 0.38% | | Core net income / Average stockholders' equity (Core ROE) | 10.49% | 4.52% | 9.25% | 4.80% | 5.03% | | Core efficiency ratio | 66.35% | 69.24% | 64.71% | 69.29% | 68.60% | Detailed Financial Exhibits Average Balance Sheet, Interest and Yield/Rate Analysis (Exhibit 3) Exhibit 3 provides a detailed breakdown of average balance sheet components, interest income, interest expense, and corresponding yields/rates for both three-month and six-month periods - The analysis includes average balances for loans (performing and nonperforming), interest income on loans (including discount accretion and amortization of loan origination fees), and average daily balances for the periods presented[32] Three Months Ended Analysis For the three months ended June 30, 2025, average interest-earning assets increased, driven by debt securities, while the average yield on loans slightly increased and the average cost of total deposits decreased, contributing to an improved net interest margin Average Balance Sheet and Yield/Rate Analysis (Three Months Ended, in thousands, except percentages) | Metric (in thousands, except percentages) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :------------ | | Interest-earning assets: | | | | | Loan portfolio, net (Average Balances) | $7,118,087 | $7,174,160 | $7,049,109 | | Loan portfolio, net (Yield/Rates) | 6.88% | 6.84% | 7.08% | | Debt securities available for sale (Average Balances) | 1,769,440 | 1,473,170 | 1,267,828 | | Debt securities available for sale (Yield/Rates) | 4.97% | 4.95% | 4.47% | | Total interest earning assets (Average Balances) | 9,527,962 | 9,294,146 | 8,966,038 | | Total interest earning assets (Yield/Rates) | 6.36% | 6.39% | 6.57% | | Interest-bearing liabilities: | | | | | Total deposits (Average Balances) | 6,600,930 | 6,411,674 | 6,332,864 | | Total deposits (Yield/Rates) | 3.15% | 3.23% | 3.67% | | Advances from the FHLB (Average Balances) | 717,260 | 723,667 | 737,658 | | Advances from the FHLB (Yield/Rates) | 4.04% | 4.04% | 3.79% | | Total interest-bearing liabilities (Average Balances) | 7,412,162 | 7,289,048 | 7,223,989 | | Total interest-bearing liabilities (Yield/Rates) | 3.28% | 3.37% | 3.73% | | Net interest income | $90,479 | $85,904 | $79,355 | | Net interest rate spread | 3.08% | 3.02% | 2.84% | | Net interest margin | 3.81% | 3.75% | 3.56% | | Cost of total deposits | 2.53% | 2.60% | 2.98% | Six Months Ended Analysis For the six months ended June 30, 2025, average interest-earning assets increased, with a slight decrease in overall yield, while net interest income improved and the net interest margin expanded compared to the prior year period Average Balance Sheet and Yield/Rate Analysis (Six Months Ended, in thousands, except percentages) | Metric (in thousands, except percentages) | June 30, 2025 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------ | | Interest-earning assets: | | | | Loan portfolio, net (Average Balances) | $7,145,968 | $7,018,015 | | Loan portfolio, net (Yield/Rates) | 6.86% | 7.07% | | Debt securities available for sale (Average Balances) | 1,622,123 | 1,253,795 | | Debt securities available for sale (Yield/Rates) | 4.96% | 4.38% | | Total interest-earning assets (Average Balances) | 9,411,700 | 8,949,515 | | Total interest-earning assets (Yield/Rates) | 6.37% | 6.54% | | Interest-bearing liabilities: | | | | Total deposits (Average Balances) | 6,506,825 | 6,381,645 | | Total deposits (Yield/Rates) | 3.19% | 3.67% | | Advances from the FHLB (Average Balances) | 720,446 | 691,206 | | Advances from the FHLB (Yield/Rates) | 4.04% | 3.64% | | Total interest-bearing liabilities (Average Balances) | 7,350,946 | 7,226,194 | | Total interest-bearing liabilities (Yield/Rates) | 3.32% | 3.72% | | Net interest income | $176,383 | $157,323 | | Net interest rate spread | 3.05% | 2.82% | | Net interest margin | 3.78% | 3.54% | | Cost of total deposits | 2.56% | 2.99% | Noninterest Income (Exhibit 4) Noninterest income saw a slight increase quarter-over-quarter, primarily driven by higher loan-level derivative income and securities gains, partially offset by derivative losses Noninterest Income (in thousands) | Category | June 30, 2025 (Amount) | June 30, 2025 (%) | March 31, 2025 (Amount) | March 31, 2025 (%) | June 30, 2024 (Amount) | June 30, 2024 (%) | | :---------------------------------------- | :--------------------- | :---------------- | :---------------------- | :----------------- | :--------------------- | :---------------- | | Deposits and service fees | $4,968 | 25.1% | $5,137 | 26.3% | $5,281 | 27.2% | | Brokerage, advisory and fiduciary activities | 4,993 | 25.2% | 4,729 | 24.2% | 4,538 | 23.4% | | Change in cash surrender value of BOLI | 2,490 | 12.6% | 2,450 | 12.5% | 2,242 | 11.5% | | Cards and trade finance servicing fees | 1,804 | 9.1% | 1,392 | 7.1% | 1,331 | 6.9% | | Securities gains (losses), net | 1,779 | 9.0% | 64 | 0.3% | (117) | (0.6)% | | Loan-level derivative income | 3,204 | 16.2% | 1,508 | 7.7% | 2,357 | 12.1% | | Derivative losses, net | (1,852) | (9.4)% | — | —% | (44) | (0.2)% | | Other noninterest income | 2,392 | 12.2% | 4,245 | 21.9% | 3,643 | 18.7% | | Total noninterest income | $19,778 | 100.0% | $19,525 | 100.0% | $19,420 | 100.0% | - Securities gains in 2Q25 were primarily due to market valuation of trading securities, while derivative losses were linked to unrealized losses in TBA MBS derivative contracts[40][42] - Other noninterest income for 2Q25 includes mortgage banking income of $0.7 million and net gains on sale of OREO properties[42] Noninterest Expense (Exhibit 5) Noninterest expense increased quarter-over-quarter, mainly due to higher salaries and employee benefits, professional services fees, and advertising expenses Noninterest Expense (in thousands) | Category | June 30, 2025 (Amount) | June 30, 2025 (%) | March 31, 2025 (Amount) | March 31, 2025 (%) | June 30, 2024 (Amount) | June 30, 2024 (%) | | :---------------------------------------- | :--------------------- | :---------------- | :---------------------- | :----------------- | :--------------------- | :---------------- | | Salaries and employee benefits | $36,036 | 48.4% | $33,347 | 46.6% | $33,857 | 46.2% | | Professional and other services fees | 13,549 | 18.2% | 14,682 | 20.5% | 12,110 | 16.5% | | Occupancy and equipment | 5,491 | 7.4% | 6,136 | 8.6% | 9,041 | 12.3% | | Telecommunications and data processing | 2,929 | 3.9% | 3,475 | 4.9% | 2,732 | 3.7% | | FDIC assessments and insurance | 2,896 | 3.9% | 3,236 | 4.5% | 2,772 | 3.8% | | Advertising expenses | 4,819 | 6.5% | 3,635 | 5.1% | 4,243 | 5.8% | | Loan-level derivative expense | 1,113 | 1.5% | 360 | 0.5% | 580 | 0.8% | | Other real estate owned and repossessed assets expense (income), net | 601 | 0.8% | 164 | 0.2% | (148) | (0.2)% | | Other operating expenses | 5,415 | 7.3% | 4,931 | 6.9% | 5,205 | 7.1% | | Total noninterest expense | $74,400 | 100.0% | $71,554 | 100.0% | $73,302 | 100.0% | - Salaries and employee benefits for 2Q25 include $0.4 million in expenses related to the Amerant Mortgage downsizing[46] - Other real estate owned and repossessed assets expense for 2Q25 includes $1.3 million of OREO valuation expense and net gains of approximately $0.5 million on sale of OREO properties[48] Consolidated Balance Sheets (Exhibit 6) The consolidated balance sheet shows an increase in total assets, primarily driven by growth in debt securities and loans held for investment, alongside an increase in total deposits and stockholders' equity Consolidated Balance Sheets (in thousands) | (in thousands, except share data) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Assets | | | | | | | Cash and cash equivalents | $636,837 | $648,367 | $590,359 | $671,841 | $310,319 | | Securities | 1,970,888 | 1,761,678 | 1,497,925 | 1,542,544 | 1,547,864 | | Loans held for sale, at the lower of cost or fair value | — | 40,597 | — | 553,941 | 551,828 | | Mortgage loans held for sale, at fair value | 6,073 | 20,728 | 42,911 | 43,851 | 60,122 | | Loans held for investment, gross | 7,183,123 | 7,157,837 | 7,228,411 | 6,964,171 | 6,710,961 | | Less: Allowance for credit losses | 86,519 | 98,266 | 84,963 | 79,890 | 94,400 | | Loans held for investment, net | 7,096,604 | 7,059,571 | 7,143,448 | 6,884,281 | 6,616,561 | | Total assets | $10,334,678 | $10,169,688 | $9,901,734 | $10,353,127 | $9,747,738 | | Liabilities and Stockholders' Equity | | | | | | | Total deposits | 8,306,544 | 8,154,978 | 7,854,595 | 8,110,944 | 7,816,011 | | Advances from the Federal Home Loan Bank | 765,000 | 715,000 | 745,000 | 915,000 | 765,000 | | Senior notes | — | 59,922 | 59,843 | 59,764 | 59,685 | | Total liabilities | 9,410,392 | 9,263,425 | 9,011,267 | 9,450,239 | 9,013,396 | | Total stockholders' equity | 924,286 | 906,263 | 890,467 | 902,888 | 734,342 | | Total liabilities and stockholders' equity | $10,334,678 | $10,169,688 | $9,901,734 | $10,353,127 | $9,747,738 | - The Company redeemed all outstanding Senior Notes on April 1, 2025[55] - In 2Q25, the Company began participating in trading of MBS as part of its investment portfolio strategy, resulting in $120.2 million in trading securities[55] Loan Portfolio Analysis (Exhibit 7) Exhibit 7 details the Company's loan portfolio, categorizing loans by type, and provides a comprehensive overview of non-performing assets and credit quality indicators Loans by Type - Held For Investment The loan portfolio held for investment saw an increase in commercial real estate (non-owner occupied and land development) and single-family residential loans, while commercial loans decreased quarter-over-quarter Loans Held For Investment by Type (in thousands) | Loan Class | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Commercial real estate - Non-owner occupied | $1,773,377 | $1,641,210 | $1,678,473 | $1,688,308 | $1,714,088 | | Multi-family residential | 368,718 | 400,371 | 336,229 | 351,815 | 359,257 | | Land development and construction loans | 543,697 | 499,663 | 483,210 | 421,489 | 343,472 | | Single-family residential | 1,542,447 | 1,549,356 | 1,528,080 | 1,499,599 | 1,446,569 | | Owner occupied | 983,090 | 951,311 | 1,007,074 | 1,001,762 | 981,405 | | Commercial loans | 1,566,420 | 1,714,583 | 1,751,902 | 1,630,318 | 1,521,533 | | Loans to financial institutions and acceptances | 156,918 | 153,345 | 170,435 | 92,489 | 48,287 | | Consumer loans and overdrafts | 248,456 | 247,998 | 273,008 | 278,391 | 296,350 | | Total loans | $7,183,123| $7,157,837 | $7,228,411 | $6,964,171 | $6,710,961| Loans by Type - Held For Sale Total loans held for sale significantly decreased quarter-over-quarter, primarily due to the completion of the Houston franchise sale in Q4 2024 Loans Held For Sale by Type (in thousands) | Loan Class | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Loans held for sale at the lower of cost or fair value | | | | | | | Real estate loans - Non-owner occupied | $— | $— | $— | $111,591 | $112,002 | | Real estate loans - Multi-family residential | — | — | — | — | 918 | | Real estate loans - Land development and construction loans | — | — | — | 35,020 | 29,923 | | Real estate loans - Single-family residential | — | — | — | 87,820 | 88,507 | | Real estate loans - Owner occupied | — | 40,597 | — | 221,774 | 220,718 | | Commercial loans | — | — | — | 87,866 | 90,353 | | Consumer loans | — | — | — | 9,870 | 9,407 | | Total loans held for sale at the lower of cost or fair value | — | 40,597 | — | 553,941 | 551,828 | | Mortgage loans held for sale at fair value | | | | | | | Land development and construction loans | 2,056 | 7,475 | 10,768 | 10,608 | 7,776 | | Single-family residential | 4,017 | 13,253 | 32,143 | 33,243 | 52,346 | | Total mortgage loans held for sale at fair value | 6,073 | 20,728 | 42,911 | 43,851 | 60,122 | | Total loans held for sale | $6,073 | $61,325 | $42,911 | $597,792 | $611,950 | - Loans transferred from held for investment to held for sale in 2024 were a result of the Houston Transaction, which was completed in Q4 2024[57] Non-Performing Assets Total non-performing assets significantly decreased quarter-over-quarter, driven by a substantial reduction in non-accrual loans, particularly in commercial and single-family residential categories Non-Performing Assets (in thousands) | Category | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Non-Accrual Loans | | | | | | | Real Estate Loans - Commercial real estate - Non-owner occupied | $1,022 | $— | $— | $1,916 | $— | | Real Estate Loans - Single-family residential | 7,421 | 15,048 | 8,140 | 13,452 | 3,726 | | Real Estate Loans - Owner occupied | 21,027 | 22,249 | 23,191 | 29,240 | 26,309 | | Commercial loans | 51,157 | 84,907 | 64,572 | 68,654 | 67,005 | | Total Non-Accrual Loans | $81,293 | $122,204 | $100,022 | $113,262 | $97,050 | | Past Due Accruing Loans | | | | | | | Commercial | 1,192 | 122 | 2,033 | 104 | — | | Total Past Due Accruing Loans | $1,192 | $1,015 | $4,079 | $1,667 | $3,902 | | Total Non-Performing Loans | 82,485 | 123,219 | 104,101 | 114,929 | 100,952 | | Other Real Estate Owned | 15,389 | 17,541 | 18,074 | 14,509 | 20,181 | | Total Non-Performing Assets | $97,874 | $140,760 | $122,175 | $129,438 | $121,133 | Loans by Credit Quality Indicators The Company's loans held for investment showed a decrease in total classified loans (Special Mention, Substandard, Doubtful) from the prior quarter, indicating an improvement in overall credit quality Loans Held For Investment by Credit Quality Indicators (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------- | :------------ | | Loans held for investment | | | | | Special Mention | $132,759 | $99,720 | $95,292 | | Substandard | 215,432 | 165,536 | 97,907 | | Doubtful | — | — | — | | Total (1) | $348,191 | $265,256 | $193,199 | | Loans held for sale at the lower of cost or fair value | | | | | Owner occupied | — | 40,597 | — | | Total loans held for sale | — | 40,597 | — | | Total | $348,191 | $305,853 | $193,199 | - There were no loans categorized as 'loss' as of the dates presented[62] Deposits by Country of Domicile (Exhibit 8) Total deposits increased quarter-over-quarter, with growth observed in both domestic and foreign deposits, particularly from Venezuela and other international sources Deposits by Country of Domicile (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Domestic | $5,707,272 | $5,592,575 | $5,278,289 | $5,553,336 | $5,281,946 | | Foreign: | | | | | | | Venezuela | 1,897,631 | 1,862,614 | 1,889,331 | 1,887,282 | 1,918,134 | | Others | 701,641 | 699,789 | 686,975 | 670,326 | 615,931 | | Total foreign | 2,599,272 | 2,562,403 | 2,576,306 | 2,557,608 | 2,534,065 | | Total deposits | $8,306,544| $8,154,978 | $7,854,595 | $8,110,944 | $7,816,011| Glossary of Terms and Definitions This section provides definitions for key financial terms used throughout the earnings release, including various balance sheet items, profitability and capital ratios, and asset quality indicators, to ensure clarity and consistent understanding - Definitions are provided for terms such as Total gross loans, Core deposits, Assets under management and custody, Net interest margin (NIM), ROA, ROE, Total revenue, various capital ratios (Total capital, Tier 1, Tier 1 leverage, CET1, Tangible common equity), Loans to Deposits ratio, Non-performing assets/loans, Net charge-offs ratio, Efficiency ratio, and Cost of total deposits[68] - Core ROA, Core ROE, and Core efficiency ratio are defined as excluding the effect of non-routine items, as detailed in Exhibit 2[68]