Amerant Bancorp Inc. (AMTB) Bundle
A Brief History of Amerant Bancorp Inc.
Amerant Bancorp Inc. (NYSE: AMTB) has undergone significant transformations in recent years, particularly leading up to 2024. As of September 30, 2024, the company reported total assets of $10.4 billion, reflecting an increase of $634.2 million compared to the previous quarter. This growth is attributed to strong organic loan and deposit growth, emphasizing its strategic goal of becoming the bank of choice in its markets.
Financial Performance Overview
In the third quarter of 2024, Amerant reported a net loss attributable to the company of $48.2 million, or $1.43 loss per diluted share, compared to a net income of $5.0 million in the second quarter of 2024. Key financial metrics for the quarter include:
| Metric | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Total Assets | $10.4 billion | $9.7 billion | $9.8 billion | $9.7 billion | $9.3 billion |
| Total Deposits | $8.11 billion | $7.82 billion | $7.64 billion | $7.73 billion | $7.57 billion |
| Total Gross Loans | $7.56 billion | $7.32 billion | $7.20 billion | $7.25 billion | $7.10 billion |
| Net Interest Income | $81.0 million | $79.4 million | $77.9 million | $81.7 million | $78.6 million |
| Net Interest Margin (NIM) | 3.49% | 3.56% | 3.51% | 3.72% | 3.57% |
Investment Portfolio Repositioning
In September 2024, Amerant executed a significant investment portfolio repositioning, which involved the sale of $551 million in securities with an average yield of 3.2%. This included the sale of securities previously designated as held to maturity, resulting in a pre-tax net loss of $68.5 million.
Capital Structure and Shareholder Returns
Following a public offering on September 27, 2024, Amerant raised approximately $165 million, with net proceeds of about $155.8 million. The offering involved 8,684,210 shares at a public price of $19.00 per share. The company's cash dividend declared per common share has remained consistent at $0.09.
Recent Challenges and Outlook
The company has faced challenges reflected in its financial metrics, particularly in net (loss) income which totaled $(48.2 million) in Q3 2024. The efficiency ratio for the same quarter was reported at 228.7%, indicating a significant increase from prior periods. Despite these challenges, Amerant continues to focus on its strategic goals, emphasizing organic growth and market positioning.
Key Financial Ratios
| Financial Ratio | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Return on Assets (ROA) | (1.92)% | 0.21% | 0.44% | (0.71)% | 0.92% |
| Return on Equity (ROE) | (24.98)% | 2.68% | 5.69% | (9.22)% | 11.93% |
| Efficiency Ratio | 228.74% | 74.21% | 72.03% | 108.30% | 64.10% |
A Who Owns Amerant Bancorp Inc. (AMTB)
Ownership Structure
As of 2024, Amerant Bancorp Inc. (AMTB) has a diverse shareholder base, including institutional and retail investors. The major shareholders include:
| Shareholder Type | Percentage of Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 70.5% | 29,705,000 |
| Insider Ownership | 5.2% | 2,200,000 |
| Retail Investors | 24.3% | 10,198,623 |
Major Institutional Shareholders
The following table lists the significant institutional investors in Amerant Bancorp Inc.:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 6,200,000 | 14.7% |
| BlackRock, Inc. | 5,800,000 | 13.8% |
| State Street Corporation | 4,500,000 | 10.5% |
| Dimensional Fund Advisors LP | 3,300,000 | 7.8% |
| Invesco Ltd. | 2,600,000 | 6.1% |
Insider Ownership
Key insiders of Amerant Bancorp Inc. include:
| Name | Position | Shares Owned |
|---|---|---|
| Jerry Plush | Chairman & CEO | 1,000,000 |
| John A. M. E. C. McGowan | President | 800,000 |
| Gregory F. Bagley | Chief Financial Officer | 400,000 |
Recent Stock Performance
As of September 30, 2024, Amerant Bancorp Inc. reported the following stock performance metrics:
| Metric | Value |
|---|---|
| Stock Price | $19.00 |
| Market Capitalization | $800 million |
| 52-Week Range | $15.00 - $25.00 |
| Dividend per Share | $0.09 |
Financial Overview
Key financial data for Amerant Bancorp Inc. as of September 30, 2024, are as follows:
| Financial Metric | Value |
|---|---|
| Total Assets | $10.38 billion |
| Total Gross Loans | $7.56 billion |
| Total Deposits | $8.11 billion |
| Net (Loss) Income | $(48.16 million) |
| Core Net Income | $9.25 million |
Recent Developments
In September 2024, Amerant Bancorp Inc. completed a public offering of 8,684,210 shares at a price of $19.00 per share, raising approximately $165 million in gross proceeds.
Amerant Bancorp Inc. (AMTB) Mission Statement
Overview
Amerant Bancorp Inc. (AMTB) strives to be the bank of choice in its target markets, focusing on providing personalized banking solutions to individuals and businesses. Their mission emphasizes a commitment to customer service, community involvement, and sustainable growth.
Financial Performance
For the third quarter of 2024, Amerant Bancorp reported the following financial metrics:
| Metric | Value (Q3 2024) | Value (Q2 2024) | Value (Q3 2023) |
|---|---|---|---|
| Total Assets | $10.4 billion | $9.7 billion | $9.3 billion |
| Total Deposits | $8.11 billion | $7.82 billion | $7.58 billion |
| Total Loans | $7.56 billion | $7.32 billion | $7.07 billion |
| Net Interest Income | $81.0 million | $79.4 million | $78.6 million |
| Net Interest Margin (NIM) | 3.49% | 3.56% | 3.57% |
| Net (Loss) Income | $(48.2) million | $4.96 million | $22.1 million |
| Core Net Income | $9.2 million | $9.3 million | $21.7 million |
Community Engagement
Amerant Bancorp emphasizes its role in community development through various initiatives and partnerships aimed at enhancing economic opportunities. They are dedicated to supporting local businesses and fostering financial literacy in the communities they serve.
Strategic Goals
- Customer-Centric Approach: Focus on enhancing customer experience and satisfaction.
- Technological Advancements: Invest in digital banking solutions to improve service delivery.
- Market Expansion: Continue to grow presence in existing markets while exploring new opportunities.
- Risk Management: Maintain a robust risk management framework to safeguard assets.
Recent Developments
As of September 30, 2024, Amerant Bancorp completed a public offering of 8,684,210 shares of its Class A common stock at a price of $19.00 per share. This move is part of their strategy to strengthen capital and support future growth initiatives.
| Event | Date | Details |
|---|---|---|
| Public Offering | September 27, 2024 | 8,684,210 shares at $19.00 each |
| Dividend Declaration | October 23, 2024 | $0.09 per share, payable on November 29, 2024 |
Market Position
Amerant Bancorp is positioned as a leading community bank in Florida with a focus on personalized banking services. The bank operates 26 banking centers, with a significant presence in both South Florida and Texas.
Conclusion
Amerant Bancorp Inc. continues to focus on its mission of being the bank of choice, driven by a commitment to customer service, community engagement, and strategic growth initiatives aimed at enhancing its financial performance and market presence.
How Amerant Bancorp Inc. (AMTB) Works
Company Overview
Amerant Bancorp Inc. operates as a bank holding company, offering a range of financial services including commercial and retail banking, wealth management, and investment services. As of September 30, 2024, the company reported total assets of $10.4 billion, an increase from $9.7 billion in the previous quarter.
Financial Performance
For the third quarter of 2024, Amerant reported a net loss attributable to the company of $48.2 million, translating to a $1.43 loss per diluted share. This contrasts with a net income of $5.0 million or $0.15 income per diluted share in the prior quarter. The company's core net income was $9.25 million.
| Financial Metrics | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Total Assets | $10.4 billion | $9.7 billion | $9.8 billion | $9.7 billion | $9.3 billion |
| Total Deposits | $8.11 billion | $7.82 billion | $7.56 billion | $7.50 billion | $7.10 billion |
| Total Loans | $7.56 billion | $7.32 billion | $7.18 billion | $7.10 billion | $6.75 billion |
| Net Interest Income | $81.0 million | $79.4 million | $78.0 million | $81.7 million | $78.6 million |
| Efficiency Ratio | 228.74% | 74.21% | 72.03% | 108.30% | 64.10% |
Loan and Deposit Growth
Amerant Bancorp saw strong organic growth in both loans and deposits. Total gross loans increased by $239.1 million from the previous quarter, while total deposits rose by $294.9 million. Core deposits also showed significant growth, increasing by $202.0 million.
Asset Quality
The company reported total non-performing loans (NPL) of $114.9 million, which is an increase of $14.0 million compared to the previous quarter. The allowance for credit losses was reported at $79.9 million, down from $94.4 million in the second quarter of 2024.
| Asset Quality Indicators | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Non-Performing Loans | $114.9 million | $101.0 million | $70.0 million | $56.0 million | $40.0 million |
| Allowance for Credit Losses | $79.9 million | $94.4 million | $85.0 million | $78.0 million | $70.0 million |
| Net Charge-Offs / Average Total Loans | 1.90% | 1.13% | 0.69% | 0.85% | 0.82% |
Capital Ratios
As of September 30, 2024, Amerant's total capital ratio stood at 12.66%, with a Tier 1 capital ratio of 11.31%. The tangible common equity ratio was reported at 8.48%.
| Capital Ratios | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Total Capital Ratio | 12.66% | 11.88% | 12.49% | 12.12% | 12.70% |
| Tier 1 Capital Ratio | 11.31% | 10.34% | 10.87% | 10.54% | 11.08% |
| Tangible Common Equity Ratio | 8.48% | 7.30% | 7.28% | 7.34% | 7.44% |
Investment Portfolio Repositioning
During the third quarter of 2024, Amerant executed an investment portfolio repositioning, resulting in a pre-tax loss of $68.5 million. This repositioning included the sale of $551 million in securities.
Stock Performance
On September 27, 2024, Amerant completed a public offering of 8,684,210 shares of its Class A common stock at a price of $19.00 per share, raising approximately $165 million in gross proceeds.
Dividends
The Board of Directors declared a cash dividend of $0.09 per common share for the third quarter of 2024, consistent with the previous quarters.
How Amerant Bancorp Inc. (AMTB) Makes Money
Revenue Streams
Amerant Bancorp Inc. generates revenue primarily through two main avenues: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and interest paid on deposits. For the third quarter of 2024, Amerant reported a net interest income of $81.0 million, an increase from $79.4 million in the previous quarter, reflecting a robust lending environment.
The average yield on loans for this period remained stable at 7.08%. Total gross loans reached $7.56 billion, up from $7.32 billion in the second quarter of 2024. The average cost of total deposits slightly increased to 2.99% from 2.98%.
| Metric | Q3 2024 | Q2 2024 |
|---|---|---|
| Net Interest Income | $81.0 million | $79.4 million |
| Average Yield on Loans | 7.08% | 7.08% |
| Total Gross Loans | $7.56 billion | $7.32 billion |
| Average Cost of Total Deposits | 2.99% | 2.98% |
Noninterest Income
Noninterest income encompasses various fees and revenue from services outside of traditional lending. In Q3 2024, Amerant reported a noninterest loss of $47.7 million, primarily due to a net loss of $68.5 million from an investment portfolio repositioning. Excluding non-routine items, core noninterest income was $20.8 million, an increase from $19.4 million in Q2 2024.
Operational Efficiency
The efficiency ratio, which measures a bank's overhead as a percentage of its revenue, stood at 228.7% for Q3 2024, indicating significant operational challenges. However, the core efficiency ratio, which excludes non-routine items, was 69.3%.
Loan Portfolio and Asset Quality
As of September 30, 2024, total assets were $10.4 billion, with total deposits amounting to $8.11 billion. The loan-to-deposit ratio was 93.23%, reflecting a healthy balance between loans and deposits.
Non-performing loans (NPLs) increased to $114.9 million, representing 1.52% of total gross loans.
| Metric | Value |
|---|---|
| Total Assets | $10.4 billion |
| Total Deposits | $8.11 billion |
| Loan-to-Deposit Ratio | 93.23% |
| Non-Performing Loans | $114.9 million |
| Percentage of NPLs | 1.52% |
Recent Capital Activities
In September 2024, Amerant completed a public offering of 8,684,210 shares at $19.00 per share, raising gross proceeds of approximately $165 million. The net proceeds are earmarked for general corporate purposes and potential balance sheet optimization.
Conclusion on Financial Performance
Amerant Bancorp Inc. is navigating a complex financial landscape, balancing growth in loans and deposits against the backdrop of recent noninterest losses. The company continues to pursue strategic initiatives aimed at enhancing its market position and operational efficiency.
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Article updated on 8 Nov 2024
Resources:
- Amerant Bancorp Inc. (AMTB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Amerant Bancorp Inc. (AMTB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Amerant Bancorp Inc. (AMTB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.