Amerant Bancorp Inc. (AMTB) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -40%. A quarter ago, it was expected that this company would post earnings of $0.27 per share when it actually produced earnings of $0.50, delivering a surprise of 85.19%. Over the last four quarters, the com ...

Financial Performance - Net income for Q1 2025 was $12.0 million, or $0.28 per diluted share, down from $16.9 million, or $0.40 per diluted share in Q4 2024[1] - Core net income for the same period was $10,153 thousand, down from $21,160 thousand in the previous quarter, indicating a decline of 52%[20] - In Q1 2025, the net income attributable to Amerant Bancorp Inc. was $11.958 million, compared to $16.881 million in Q4 2024 and a loss of $48.164 million in Q3 2024[25] - Basic earnings per common share decreased to $0.28 in Q1 2025 from $0.40 in Q4 2024, a decline of 30%[18] Assets and Deposits - Total assets increased by $268.0 million, or 2.7%, to $10.2 billion compared to Q4 2024[2] - Total deposits rose by $300.4 million, or 3.8%, to $8.2 billion, with core deposits increasing by $372.9 million, or 6.6%, to $6.0 billion[2] - Total assets increased to $10,169,688 thousand as of March 31, 2025, compared to $9,901,734 thousand on December 31, 2024, reflecting a growth of 2.7%[18] - Total deposits increased to $8,154,978 thousand as of March 31, 2025, compared to $7,854,595 thousand on December 31, 2024, reflecting a growth of 3.8%[18] Non-Performing Assets and Credit Losses - Non-performing assets increased by $18.6 million, or 15.2%, to $140.8 million, with non-performing loans rising to $123.2 million[3] - The allowance for credit losses increased by $13.3 million, or 15.7%, to $98.3 million due to macroeconomic factors[3] - The provision for credit losses increased to $18,446 thousand in Q1 2025, compared to $9,910 thousand in Q4 2024, representing an increase of 86%[18] - Non-performing assets as a percentage of total assets rose to 1.38% as of March 31, 2025, up from 1.23% in the previous quarter[19] Revenue and Income Sources - Pre-provision net revenue (PPNR) was $33.9 million, up $5.9 million, or 21.3%, from Q4 2024[3] - Total noninterest income for Q1 2025 was $19.525 million, down from $23.684 million in Q4 2024[25] - The loan portfolio generated interest income of $121,021,000 for the three months ended March 31, 2025, with a yield of 6.84%[35] Efficiency and Ratios - The efficiency ratio improved to 67.9%, down from 74.9% in Q4 2024[3] - The efficiency ratio improved to 67.87% in Q1 2025, down from 74.91% in Q4 2024, indicating better cost management[19] - The Tier 1 capital ratio was reported at 11.84% as of March 31, 2025, slightly down from 11.95% in the previous quarter[19] - The tangible common equity ratio was 8.69% as of March 31, 2025, slightly down from 8.77% in the previous quarter[27] Stockholder Equity and Dividends - Stockholders' equity increased to $906,263,000 as of March 31, 2025, up from $890,467,000 at December 31, 2024, representing a growth of 1.0%[27] - The company declared a cash dividend of $0.09 per common share for the last four quarters, maintaining consistency[18] - The Company declared cash dividends of $0.09 per share, resulting in an aggregate payment of $3.8 million per quarter[5] Operational Changes - The Company plans to scale back its residential mortgage operations to focus on a Florida-centric business model[4] - As of March 31, 2025, the Company had 77 full-time equivalents (FTEs) for Amerant Mortgage, a decrease from 80 FTEs as of December 31, 2024[11] - The company reported $3.2 million in expenses related to Amerant Mortgage for the three months ended March 31, 2025[54] Share Repurchase and Offerings - The Company repurchased 215,427 shares of Class A common stock at a weighted average price of $23.21 per share, totaling approximately $5.0 million[4] - A public offering of 8,684,210 shares of Class A voting common stock was completed at a price of $19.00 per share on September 27, 2024[6]

Core Insights - Amerant Bank has opened a new banking center and regional headquarters in West Palm Beach, Florida, enhancing its market presence in Palm Beach County [1][4] - The new facility is located in CityPlace, an area with significant retail and residential development, indicating a strategic choice for expansion [2][3] - The bank aims to provide tailored financial services to individuals, businesses, and commercial clients, emphasizing relationship-based solutions [4][5] Company Overview - Amerant Bank is a subsidiary of Amerant Bancorp Inc. and has been serving clients in South Florida for over 40 years [6] - The bank has a commitment to community involvement and supports various non-profit organizations [6] - Amerant Bank has been recognized as a Most Loved Workplace® in 2022, 2023, and 2024 [6]

Core Viewpoint - Amerant Bank has appointed Jeffrey K. Tischler as Senior Executive Vice President and Chief Credit Officer to enhance its credit and risk management capabilities, supporting the bank's strategic growth agenda in a prudent manner [1][2]. Group 1: Appointment Details - Jeffrey K. Tischler will oversee Credit Services, Portfolio Management, and Credit Risk functions at Amerant Bank [1]. - Tischler has over 20 years of experience in banking and credit risk management, previously serving as Chief Credit Officer at City National Bank [2]. - His expertise includes credit adjudication, portfolio oversight, and commercial banking strategy [2]. Group 2: Leadership Perspective - Jerry Plush, Chairman and CEO of Amerant Bank, expressed excitement about Tischler's addition, highlighting the importance of his expertise for the bank's growth [2]. - Tischler emphasized his commitment to maintaining high standards of credit quality and risk management while contributing to the bank's tradition of prudent credit management [3]. Group 3: Company Background - Amerant Bank is a prominent financial institution in Florida, serving clients for over 40 years and operating subsidiaries such as Amerant Investments and Amerant Mortgage [4]. - The bank has been recognized as a Most Loved Workplace® in 2022, 2023, and 2024 by Best Practice Institute [4].

Core Insights - Amerant Bank has appointed Bam Adebayo, a three-time NBA All-Star, as its new brand ambassador, enhancing its commitment to the South Florida community and sports culture [1][3] Marketing Initiatives - Adebayo will participate in various marketing campaigns, including social media promotions and exclusive events such as meet-and-greets at the Miami Heat's arena [2] - He will also feature in commercials and promotional content aimed at engaging basketball fans in South Florida [2] Community Engagement - The partnership reflects Amerant Bank's dedication to building meaningful relationships within the community, aligning with Adebayo's values of work ethic and excellence [3] - Adebayo expressed enthusiasm for collaborating with Amerant to positively impact the community that has supported him throughout his career [4] Sports Partnerships - Adebayo joins a roster of other athletes associated with Amerant, including NFL running back Raheem Mostert and NHL player Matthew Tkachuk [3] - Amerant Bank has established partnerships with various local sports teams, including naming rights to the Amerant Bank Arena, home of the Florida Panthers [3]

Financial Position and Assets - As of December 31, 2024, the company had net deferred tax assets (DTAs) with a book value of $53.5 million, based on a U.S. corporate income tax rate of 21%[289]. - The company anticipates that its total assets may exceed $10 billion in 2025, which would subject it to additional regulatory requirements[307]. - As of December 31, 2024, total earning assets amount to $9,255,505,000, with $5,653,575,000 maturing in less than one year[743]. - The company holds $7,124,310,000 in performing loans, with $4,700,832,000 maturing in less than one year[743]. - Interest-bearing liabilities total $7,248,485,000, with $6,038,970,000 maturing in less than one year[743]. - The company has $1,437,170,000 in debt available for sale, with $344,207,000 maturing in less than one year[743]. - Cash and cash equivalents stand at $590,359,000, with $520,863,000 maturing in less than one year[743]. - The company has $58,278,000 in Federal Reserve and FHLB stock, with $42,285,000 maturing in less than one year[743]. Regulatory and Compliance Risks - The company is subject to extensive regulation that could limit its activities and adversely affect its earnings, with compliance costs potentially impacting profitability[306]. - The company may incur additional costs and resource allocation to comply with potential changes in regulations under the new presidential administration[309]. - The company may face regulatory scrutiny regarding compliance with anti-money laundering laws, which could result in significant penalties[323]. - The company is required to meet capital adequacy and liquidity standards; failure to do so could adversely affect its financial condition and operations[317]. - The bank must maintain a capital conservation buffer of 2.5% and meet other regulatory capital ratios to avoid constraints on dividends and financial obligations[345]. Market and Economic Risks - The company is exposed to potential adverse effects from economic conditions, including downturns in the U.S. economy and market conditions, particularly in its primary markets of Miami-Dade, Broward, Palm Beach, and Hillsborough counties[302]. - The company faces risks related to market disruptions that could negatively impact loan performance and increase default rates, affecting its financial condition[303]. - The company anticipates that FDIC insurance premiums may increase significantly, which could reduce profitability and limit business opportunities[319]. - Changes in corporate tax rates could affect the value of the company's DTAs and may require a write-off of a portion of those assets[289]. Investment and Debt Management - The company has no limitations on incurring additional debt, which could increase financial obligations and risks associated with debt management[348]. - The company's ability to meet debt obligations depends on future operating performance and prevailing economic conditions, including inflation and interest rates[343]. - The company expects to redeem the senior notes by April 1, 2025, but the subordinated notes and debentures will remain outstanding[342]. - As of December 31, 2024, the company had $60.0 million in senior notes with a 5.75% coupon rate maturing on June 30, 2025, $30.0 million in subordinated notes at 4.25% due March 15, 2032, and $64.2 million in junior subordinated debentures[342]. Shareholder and Ownership Structure - The company’s executive officers and directors own approximately 36% of the outstanding shares, potentially exerting significant control over corporate matters[330]. - The company is authorized to issue up to 250 million shares of Class A common stock, which could lead to dilution of existing shareholders' equity interests[336]. Performance Metrics - The company reported a net interest income increase to approximately $361.0 million in December 31, 2024, up from $336.0 million in December 31, 2023, primarily due to higher interest income and a 1.9% increase in total assets[731]. - The sensitivity analysis indicated that a 200 basis point increase in interest rates would result in a $24,427 thousand (6.8%) increase in earnings for December 31, 2024[729]. - The economic value of equity (EVE) analysis showed a decrease of 13.61% with a 200 basis point increase in interest rates as of December 31, 2024[734]. - The average duration of the investment portfolio increased to 5.2 years as of December 31, 2024, compared to 5.0 years in 2023, mainly due to lower mortgage-backed securities prepayments[738]. - The company measures potential changes in the market price of its investment portfolio, with a 200 basis point increase in interest rates resulting in a market value decrease of $150,674 thousand as of December 31, 2024[737]. - The interest rate sensitivity gap is negative $385,395,000 for less than one year, indicating potential exposure to interest rate fluctuations[743]. - Cumulative interest rate sensitivity gap reaches $2,007,020,000, reflecting the company's long-term interest rate risk management[743]. - Earnings assets to interest-bearing liabilities ratio is 93.6% for less than one year, indicating a strong asset-liability management[743]. International Exposure - As of December 31, 2024, 24.1% of total deposits, amounting to $1.9 billion, were from residents of Venezuela, indicating significant exposure to international markets[325]. - The company’s total loan exposure to international markets was $40.7 million, or less than 1.5% of total loans, as of December 31, 2024[325]. Legal and Litigation Risks - The company faces risks of litigation and regulatory investigations that could lead to significant financial losses and harm to reputation[315]. - The company is subject to potential tax audits which may result in penalties or additional taxes, adversely impacting financial performance[313].

Financial Data and Key Metrics - Core business demonstrated strong performance in Q4 2024, with solid organic loan and deposit growth, and improvement in net interest income and net interest margin [5] Business Line Data and Key Metrics - No specific data provided for individual business lines [5] Market Data and Key Metrics - No specific data provided for individual markets [5] Company Strategy and Industry Competition - The company is transitioning from a multi-year transformation to focus on the execution and implementation of strategic growth plans [4] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the hard work of the team throughout 2024 and expressed appreciation for their efforts [4] Other Important Information - Discussions on the call contain forward-looking statements and references to non-GAAP financial measures [3] Q&A Session - No Q&A session details provided in the content [1][2][3][4][5]

This presentation contains "forward-looking statements" including statements with respect to the Company's objectives, expectations and intentions and other statements that are not historical facts. Examples of forward- looking statements include but are not limited to: our future operating or financial performance, including revenues, expenses, expense savings, income or loss and earnings or loss per share, and other financial items; statements regarding expectations, plans or objectives for future operati ...

Core Insights - Amerant Bancorp Inc. reported revenue of $111.32 million for the quarter ended December 2024, reflecting a year-over-year increase of 9.9% and a surprise of +10.73% over the Zacks Consensus Estimate of $100.54 million [1] - The company's EPS for the quarter was $0.50, up from $0.46 in the same quarter last year, resulting in an EPS surprise of +85.19% compared to the consensus estimate of $0.27 [1] Financial Metrics - Net charge-offs as a percentage of average total loans held for investment were 0.3%, significantly lower than the average estimate of 0.9% from three analysts [4] - The efficiency ratio was reported at 74.9%, higher than the average estimate of 68.3% from three analysts [4] - The net interest margin stood at 3.8%, exceeding the average estimate of 3.6% from three analysts [4] - Average balances of total interest-earning assets were $9.30 billion, slightly below the average estimate of $9.35 billion from two analysts [4] - Total non-performing loans amounted to $104.10 million, higher than the average estimate of $83.80 million from two analysts [4] - Total non-performing assets were reported at $122.18 million, compared to the average estimate of $95.88 million from two analysts [4] - Noninterest income reached $23.68 million, surpassing the average estimate of $17.84 million from three analysts [4] - Net interest income was $87.63 million, exceeding the average estimate of $82.70 million from three analysts [4] Stock Performance - Shares of Amerant Bancorp have returned +0.5% over the past month, while the Zacks S&P 500 composite has changed by +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Amerant Bancorp Inc. reported quarterly earnings of $0.50 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and showing an increase from $0.46 per share a year ago, resulting in an earnings surprise of 85.19% [1] - The company achieved revenues of $111.32 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10.73% and increasing from $101.29 million year-over-year [2] - The stock has underperformed the market with a gain of about 1.4% since the beginning of the year, compared to the S&P 500's gain of 2.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $100.59 million, and for the current fiscal year, it is $2.06 on revenues of $424.58 million [7] - The estimate revisions trend for Amerant Bancorp is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Southeast industry, to which Amerant Bancorp belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]