Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $8.9 million or $0.45 per diluted share, an increase from $6.9 million or $0.35 per share in Q3 2024, representing a 29% year-over-year growth [2][8] - Return on average assets increased to 1.27% from 1.11% a year ago, while return on average equity improved to 15.74% from 13.38% [3][8] - The efficiency ratio strengthened to 52.28%, reflecting disciplined expense management [3][10] - Net interest margin expanded to 3.14% compared to 3.03% in the same quarter last year [3][10] - Total assets reached $2.8 billion, marking a 10.5% year-over-year growth [3][4] Business Line Data and Key Metrics Changes - Net interest income before provision for credit losses was $21.3 million, up $3.2 million or 17.5% from the prior year [3][13] - Loans held for investment grew to $2.1 billion, an increase of more than $199 million or 10.3% from $1.9 billion a year ago [4][10] - Non-performing loans declined to 0.06% of total loans, down from 0.14% last year, indicating strong credit quality [4][19] Market Data and Key Metrics Changes - Total deposits ended the quarter at $2.5 billion, marking a robust 15.5% year-over-year increase [3][4] - Average deposits increased to $166 million or nearly 29% compared to the prior quarter and are up $380 million or 18% year over year [10][11] Company Strategy and Development Direction - The company focuses on relationship-based growth and has added new production personnel to support growth plans in diversified deposit-focused business verticals [4][10] - The management highlighted the strength of Florida's economy as a key driver of success, with real GDP growth tracking around 2.4% in 2025 [25][26] - The company aims to leverage opportunities in the association banking vertical, with plans to potentially double the book of business in the next 18 months [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, citing solid business fundamentals and a vibrant market [54] - The company anticipates improvements in net interest margin as excess cash is put to work in loan volume and securities portfolio [14][45] - Management noted that the current economic environment aligns well with the company's strategy, particularly in serving middle market businesses and real estate development [26] Other Important Information - The company completed a $40 million subordinated debt issuance, primarily used for share repurchase, which underscores confidence in the intrinsic value of its stock [5][8] - Tangible book value per share grew to $11.55, reflecting the impact of the share repurchase [5][10] Q&A Session Summary Question: Can you quantify the yacht payoffs in the quarter? - The yacht payoffs were a little over $10 million and occurred in August, impacting loan yields and margin [29] Question: Is the loan production in September a sign of sustained momentum? - Management believes it is a sign of sustained loan momentum, with a strong pipeline for Q4 [31] Question: How is competition impacting loan pricing? - The market is very competitive, and pricing is based on relationships rather than transactions [32] Question: What is the outlook for the margin in Q4? - A margin of 3.27% is expected for Q4, with further rate cuts anticipated [37][44] Question: What are the expectations for non-interest income? - Non-interest income is expected to remain stable, with activity in wire fees and swap fees anticipated to continue [38] Question: What growth opportunities exist in the association banking business? - The company is bullish on the association banking vertical, with significant growth potential identified [39]

Financial Performance Highlights - GAAP diluted EPS increased by 28% quarter-over-quarter (QoQ) and 14% year-over-year (YoY)[32] - Return on Assets rose by 23 basis points (bps) QoQ[32] - Return on Common Equity increased by 203 bps QoQ[32] - Provision for Credit Losses declined by 4% QoQ and 17% YoY[32] - Diluted Net Operating EPS increased +27% QoQ and +13% YoY[33] Balance Sheet - Average loans increased by $563 million QoQ[43] - CRE loans declined by 4% (-$926 million), reflecting higher payoffs and the sale of an out-of-footprint portfolio[43] - Consumer loans rose by 4% (+$1 billion), reflecting higher average recreational finance and automobile loans[43] - Average deposits increased by $22 billion or 1% QoQ[47] - Repurchased $11 billion of common shares in 2Q25[39] Income Statement - Noninterest income increased by $72 million or 12% QoQ[52] - Noninterest expense decreased by $79 million, or -6% QoQ[57] - Taxable-equivalent net interest income increased +$15 million or 1% QoQ[38] Credit Quality - Criticized loans decreased -$10 billion QoQ[68]

Financial Data and Key Metrics Changes - The company reported a net loss of $2.7 million or 13¢ per diluted share for Q1 2025, similar to the prior quarter, but showed a meaningful improvement in net interest income [9][10] - Net interest income increased by $1.3 million or 13.4%, driven by a 27 basis point expansion in net interest margin [9][10] - Tangible book value per share increased to $14.81, up 7¢ from the prior quarter [6] Business Line Data and Key Metrics Changes - Loan production totaled $90 million during the quarter with a weighted average yield of approximately 7.1% [5] - The company achieved 3% loan growth, with $44 million in deposit growth and a 14 basis point reduction in the cost of deposits [4] - The loan portfolio included $33 million in commercial real estate loans, $9 million in residential mortgages, and $7 million in construction loans [5] Market Data and Key Metrics Changes - Deposits increased by $43.9 million or 3.2%, with core deposit count growing by $24.4 million or 3.8% [13][14] - The company maintained a strong liquidity position with $413 million in untapped borrowing capacity and $28 million in liquidity from unencumbered available-for-sale securities and unrestricted cash [7] Company Strategy and Development Direction - The strategic priorities for 2025 focus on driving loan growth, maintaining strong credit quality, and diversifying low-cost funding sources [3] - The company is emphasizing higher-yielding asset classes and portfolio diversification to enhance earnings and long-term franchise value [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of lending and deposit gathering activities, despite reporting a net loss [4] - The company expects additional margin expansion of 5 to 10 basis points in the second quarter [18] - Management highlighted the importance of maintaining expense discipline while anticipating operating expenses to remain in the high $13 million to low $14 million range [11] Other Important Information - The company repurchased 464,000 shares at a weighted average price of $9.52, enhancing shareholder value [6] - Nonperforming assets increased slightly but remain low at 27 basis points of total assets [15] Q&A Session Summary Question: Margin for the quarter - Management expects margin expansion of 5 to 10 basis points in the second quarter [18] Question: Loan maturities and resets - Approximately $220 million in loans will mature or reprice within 2025, with yields just shy of 7% [19] Question: Deposit rates and margin expansion - The company has room to lower rates on core deposits as they transition from CDs [21] Question: Unsecured consumer loans - The yield on unsecured consumer loans is around 7%, and they come with credit reserves [24] Question: Future loan purchases - The company will consider additional loan purchases to augment organic growth but does not have a set cap on this strategy [26] Question: Expense outlook - Additional bankers may be hired to support organic loan growth, impacting expenses [41] Question: Share buyback program - The company plans to continue executing the share buyback program while being mindful of capital deployment [53]