Financial Data and Key Metrics Changes - The company reported a net operating profit of $29 million or $0.54 per share for the quarter, with pretax pre-provision earnings at $43.4 million or 1.41% [4] - Total loans decreased by $125 million or 5% annualized, while average balances were down $135 million compared to Q4 [5] - The tangible book value per share increased to $22.33, up from $21.61 at year-end, marking a 13.8% year-over-year increase [16] - The net interest margin (NIM) increased by 11 basis points to 3.31% [25] Business Line Data and Key Metrics Changes - Gross loan production for Q1 was $750 million, with only 31% or $237 million funded [6] - Operating non-interest income increased by 2.4% to $14.8 million on a linked quarter basis, with fee income as a percentage of total revenue rising to 13.4% [29] - Operating non-interest expense declined by $2.8 million for the quarter, leading to an operating efficiency ratio of 60.4% [30] Market Data and Key Metrics Changes - The company moved out over $440 million in wholesale funding during the quarter, reducing reliance on higher-cost deposits [7] - The loan-to-deposit ratio decreased from 104% to 89% over the last two years, with a target to remain below 90% going forward [12][22] Company Strategy and Development Direction - The company aims to achieve a return on assets (ROA) exceeding 1% in the latter half of the year, focusing on disciplined loan growth despite current challenges [5] - The bank plans to continue reducing reliance on unattractively priced deposits and is actively managing its capital and liquidity [14][31] - The company has increased its quarterly dividend by 10% to $0.22 per share, reflecting confidence in its growth outlook and capital generation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, citing a significant increase in loan production over the past year, which is expected to translate into growth in 2026 and beyond [20][42] - The management acknowledged the challenges posed by economic uncertainties, including tariffs and interest rates, but remains committed to delivering value to shareholders [33] - The company is focused on maintaining a conservative allowance for credit losses, with 65% of the weighting on downside scenarios in its economic modeling [18] Other Important Information - The company repurchased 377,000 shares during the quarter, with $37 million remaining on the authorization for further buybacks [17] - Nonperforming assets increased from $79 million at year-end to $97 million, primarily due to two loans in retail and office sectors [10] Q&A Session Summary Question: What is the outlook for deposits and their stickiness? - Management noted that some deposit fluctuations are seasonal, with good work by banking teams contributing to core deposit growth [35] Question: What are the expectations for expenses moving forward? - Management indicated that while expenses are expected to rise slightly due to new hires, there is a strong focus on managing overall costs [37][40] Question: What is the updated outlook for loan growth? - Management anticipates flat loan growth for the year, with potential for improvement in the second half based on pipeline strength [42][43] Question: How does the company view the government-guaranteed business? - Management remains bullish on the government-guaranteed business, expecting it to outperform in the latter half of the year [70][78] Question: What is the strategy regarding the securities portfolio and reinvestment? - The company is currently using cash flows to pay down wholesale funding but will become more active in investments once loan growth picks up [106] Question: What is the outlook for credit trends and non-accrual loans? - Management expressed confidence in managing non-accrual loans, with strategies in place to resolve them by early third quarter [117]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $11.3 million or 67 cents per diluted share, reflecting strong performance [10] - Tangible book value increased to $23.61 per share, representing over 9% annualized growth quarter over quarter [11] - Total revenue reached $46.8 million, with net interest income expanding as anticipated [15] Business Line Data and Key Metrics Changes - Loan growth was at a 9% annualized pace for Q1, meeting expectations, while deposit growth was 10% quarter over quarter annualized [13] - Non-interest income for the quarter totaled $8.6 million, exceeding guidance due to strong insurance and mortgage banking revenues [28] - Operating expenses remained flat at just over $32 million, indicating effective cost management [29] Market Data and Key Metrics Changes - The loan to deposit ratio held steady at 83%, providing flexibility for future growth [20] - The weighted average cost of non-broker deposits was 3.39%, with total interest-bearing costs decreasing by 10 basis points to 0.92% [22] - Net interest margin was 3.21%, slightly down from the previous quarter but in line with guidance [24] Company Strategy and Development Direction - The company is focused on organic growth, with plans to leverage its strong market position and experienced team [33][39] - Talent acquisition remains a priority, with recent hires aimed at enhancing private banking and treasury management [36] - The company is optimistic about maintaining growth in EPS and achieving near-term revenue targets [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of their markets and customer sentiment, despite economic uncertainties [45][46] - The company anticipates continued loan growth and margin expansion, driven by new loan production and favorable market conditions [26][39] - Management remains cautious about potential impacts from tariffs but reports positive feedback from clients regarding order volumes [49][50] Other Important Information - The effective corporate tax rate for the quarter was approximately 17%, with expectations to stabilize between 18% to 19% going forward [30] - The company's consolidated TCE ratio increased to 6%, and total risk-based capital ratio remained well above regulatory standards at 11.2% [31] - The company welcomed a new board member, Kelly Showmaker, enhancing its governance and regional perspective [40] Q&A Session Summary Question: Customer sentiment and loan growth outlook - Management noted strong customer sentiment and confidence in maintaining loan growth despite market volatility [45][46] Question: Balance sheet leverage and deposit ratios - Management indicated room for prudent growth in the balance sheet while maintaining a strong loan to deposit ratio [53][58] Question: Share repurchases and capital actions - The company has $1.5 million left for share repurchases and is considering actions based on stock valuation [60][63] Question: Margin expectations and Fed rate cuts - Management expects two to three basis points of margin expansion quarterly, benefiting slightly from Fed rate cuts [68][70] Question: Fee income trends and investment services - Management anticipates low to mid $8 million range for non-interest income in Q2, with strong performance in insurance and mortgage banking [28][113] Question: Equipment financing and leasing business line - Management expressed satisfaction with the growth and performance of the equipment financing segment, indicating plans for further development [146][148]

Financial Data and Key Metrics Changes - The company reported record earnings of $115.2 million, translating to $0.58 per share, marking a significant increase from previous quarters [13] - Core earnings were reported at $111.9 million, or $0.56 per share, with a non-recurring expense of $2 million related to a Texas lawsuit impacting this quarter [14] - Revenue reached $260.1 million, surpassing both the fourth quarter of 2024 and the first quarter of 2024 [16] - The net interest margin improved to 4.44%, up from 4.39% in the previous quarter [25] - Non-performing loans improved to 0.6% from 0.67%, and non-performing assets decreased to 0.56% from 0.63% [19][20] - Capital ratios showed strong growth, with CET1 at 15.4% and tangible book value increasing to $13.15 from $11.79 a year ago [21] Business Line Data and Key Metrics Changes - The community bank segment saw strong loan growth of $291.5 million, while the Centennial Commercial Finance Group (CCFG) experienced a decline of $103 million [17] - The total loan portfolio reached a record level of $14.95 billion, with deposits increasing by over $395 million to $17.5 billion [17][18] - The commercial real estate book remained stable, with a 5% increase over the past year [34] Market Data and Key Metrics Changes - The company noted strong deposit growth across all Florida regions, contributing to the overall increase in deposits [26] - The interest rate on interest-bearing deposits decreased to 2.67% from 2.8% at year-end [18] Company Strategy and Development Direction - The management emphasized a conservative approach with strong capital reserves, excellent liquidity, and good asset quality as key to their performance [10] - The company is open to M&A opportunities but remains cautious, focusing on finding the right deals that align with their performance metrics [120][122] - The management plans to continue stock buybacks while also paying down debt, indicating a balanced approach to capital management [86][87] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance despite uncertain economic conditions, highlighting a strong quarter as a potential breakout [10][11] - There is a focus on maintaining strong margins and managing expenses effectively, with expectations of continued loan growth [12][68] - The management is closely monitoring the economic environment and potential impacts from tariffs and interest rate changes [60][72] Other Important Information - The company celebrated the tenth anniversary of CCFG, which has funded over $15 billion in loans [31] - The management highlighted the importance of maintaining a conservative reserve strategy, aiming for a 2% reserve ratio in the future [102][104] Q&A Session Summary Question: Insights on borrower demand and boat lending - Management noted elevated volume in boat lending due to manufacturer subsidies, but acknowledged some uncertainty in the market [49][50] Question: Update on margin and loan yields - New loan production yields were reported at over 7%, with expectations of maintaining margins despite competitive pressures [55][70] Question: Credit cleanup and industry concerns - Management indicated that credit cleanup is nearing completion, with no significant new concerns noted in core markets [58][60] Question: Thoughts on M&A environment - Management expressed readiness to pursue M&A opportunities, particularly smaller deals, while emphasizing the need for sensible pricing [120][122] Question: Future loan growth and market conditions - Management highlighted strong activity in Southeast Florida and Dallas metro areas, with some headwinds from higher payoffs expected [91]

Financial Data and Key Metrics Changes - The company reported a net income of $131 million, with a return on assets of 19.1% and a return on equity of 18.8%, which compares favorably with peers and industry averages [6][7] - The net income was impacted by a non-recurring rental expense adjustment of $810,000, which equated to approximately $0.42 on an after-tax basis [7] - Loan growth for the year was 7%, while deposit growth was 3.6%, both moderate compared to previous years but in line with industry averages [7][8] - Non-performing loans decreased from $20 million to $10 million, representing a 50% improvement [9] - The leverage capital ratio improved from 10.85% at the beginning of the year to 11.33% at year-end [11] - Tangible book value per common share increased from $50.54 to $57.86 [11] Business Line Data and Key Metrics Changes - The company experienced a reduction in criticized loans by 33% during the year [9] - The company repurchased 460,000 shares of common stock for a total consideration of $34 million [11] Market Data and Key Metrics Changes - The company noted that the banking industry is experiencing slow growth, with no significant increases in activity anticipated in the near term [7][8] - The company is facing competition from local banks offering special rates, particularly in the Asian community [22] Company Strategy and Development Direction - The company plans to remain flexible in its pricing strategy to compete effectively in the market [22] - The management indicated that buybacks will depend on loan growth prospects, stock pricing, and capital ratios [23] - The company is establishing a new branch in Manhattan, expected to open in March 2025, which will increase occupancy and personnel expenses [47] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the banking industry, expecting moderate growth [7][45] - The management highlighted that while there is still activity, payoff activity has been higher, indicating a lack of sustainable increases in loan activity [46] - The management noted that clients are currently hesitant to invest due to perceived risks, despite having capital available [62] Other Important Information - The company plans to make a significant donation to local wildfire relief efforts, which will increase donation expenses [30] - The company is actively purchasing treasuries to take advantage of favorable rates, with $60 million in ten-year treasury purchases made recently [50] Q&A Session Summary Question: Inquiry about margin stability - Management indicated that they do not foresee major effects on margins and expect them to remain relatively stable [16][17] Question: Capital repatriation and buyback plans - Management stated that buyback decisions will depend on loan growth prospects and stock pricing, with a possibility of continued buybacks if stock remains undervalued [23] Question: Spot rate on deposits - The spot rate on deposits was reported at 3.63% for December [28] Question: Expense run rate expectations - Management projected non-interest expenses at about $23 million for the upcoming year, including increased charitable contributions and elevated payroll taxes [30][31] Question: Loan growth and competitive landscape - Management noted elevated payoff activity and a lack of sustainable increases in loan activity, indicating a cautious outlook for future growth [42][45] Question: Health of borrowers and credit trends - Management reported that borrowers are generally healthy, with strong sponsors willing to support loans during challenging times [66][70]