Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $8,900,000 or $0.45 per diluted share, an increase from $6,900,000 or $0.35 per share in Q3 2024, representing a 29% year-over-year growth [2][10] - Return on average assets increased to 1.27% from 1.11% a year ago, while return on average equity improved from 13.38% to 15.74% [3][10] - 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 $2,800,000,000, marking a 10.5% year-over-year growth [4] - Total deposits increased by 15.5% year-over-year to $2,500,000,000 [4] Business Line Data and Key Metrics Changes - Loans held for investment grew to $2,100,000,000, an increase of 10.3% from $1,900,000,000 a year ago [5] - Non-performing loans declined to 0.06% of total loans, down from 0.14% last year [6] - The allowance for credit losses totaled $25,000,000, representing 1.17% of total loans [6] - The diversified deposit-focused business verticals accounted for $672,000,000 or 27% of total deposits [4] Market Data and Key Metrics Changes - Average deposits increased by $166,000,000 or nearly 29% compared to the prior quarter and are up $380,000,000 or 18% year-over-year [13] - Interest-bearing deposit costs remained stable at 3.29%, down 47 basis points from the same period last year [15] Company Strategy and Development Direction - The company focuses on relationship-based growth and has added new production personnel to support growth plans [5][7] - The strategy includes preparing for a lower rate environment, with expectations of benefiting from rate cuts in the short term [19][20] - The company is bullish on the association banking vertical, anticipating significant growth opportunities in this segment [52] Management's Comments on Operating Environment and Future Outlook - The management highlighted Florida's strong economy, with real GDP growth tracking around 2.4%, which supports the company's growth strategy [32] - The management expressed confidence in sustaining momentum into 2026, emphasizing the strength of the business model and market conditions [34][75] Other Important Information - The company completed a $40,000,000 subordinated debt issuance and repurchased approximately 2,000,000 shares at a weighted average price of $17.19 per share [6][11] - Tangible book value per share grew to $11.55, reflecting the impact of the share repurchase [6][13] Q&A Session Summary Question: Can you quantify the yacht payoffs in the quarter? - The yacht payoffs were a little over $10,000,000 and occurred in August, impacting loan yields and margin [38] Question: Is the loan production in September a sign of sustained momentum? - Management indicated that September was a record-setting month and the pipeline looks strong for Q4 [40] Question: How is competition impacting loan pricing? - The market is competitive, and pricing is based on relationships rather than transactions [41] Question: What is the outlook for the margin given additional costs from subordinated debt? - The margin is expected to remain around 3.27% for Q4, with potential for improvement as loan growth resumes [49] Question: What are the expectations for non-interest income and SBA activity? - Non-interest income is expected to remain stable, with some impact from the government shutdown on SBA activity [50] Question: What growth opportunities exist in the condo association banking business? - The company is optimistic about this segment, with plans to potentially double the book of business in the next 18 months [53]