Amerant Bancorp (AMTB) - 2024 Q3 - Quarterly Report

Total Assets and Liabilities - Total assets increased to $10.35 billion as of September 30, 2024, compared to $9.72 billion as of December 31, 2023[5] - Total deposits grew to $8.11 billion from $7.89 billion year-over-year[5] - Loans held for investment, gross, rose to $6.96 billion from $6.87 billion year-over-year[5] - Interest earning deposits with banks surged to $614.35 million from $242.71 million year-over-year[5] - Debt securities available for sale increased to $1.48 billion from $1.22 billion year-over-year[5] - Advances from the Federal Home Loan Bank increased to $915 million from $645 million year-over-year[5] - Cash and cash equivalents increased to $671.84 million from $321.87 million year-over-year[5] - Total stockholders' equity increased to $902.9 million as of September 30, 2024, up from $736.1 million at the end of 2023[11] - Total liabilities held for sale as of September 30, 2024, amounted to $603.7 million, including $590.7 million in total deposits and $12.9 million in other liabilities[27] Income and Expenses - Net interest income for Q3 2024 was $80.999 million, compared to $78.577 million in Q3 2023, showing a 3.1% increase[7] - Total interest income for Q3 2024 was $151.637 million, up from $139.383 million in Q3 2023, reflecting an 8.8% increase[7] - Provision for credit losses in Q3 2024 was $19 million, significantly higher than $8 million in Q3 2023, indicating a 137.5% increase[7] - Noninterest income for Q3 2024 was a loss of $47.683 million, compared to a gain of $21.921 million in Q3 2023, marking a 317.6% decline[7] - Total noninterest expenses for Q3 2024 were $76.208 million, up from $64.420 million in Q3 2023, a 18.3% increase[7] - Net loss for Q3 2024 was $48.164 million, compared to a net income of $22.119 million in Q3 2023, a 317.8% decline[7] - Basic loss per common share for Q3 2024 was $1.43, compared to earnings of $0.66 per share in Q3 2023[9] - Comprehensive income for Q3 2024 was $17.790 million, up from $3.411 million in Q3 2023, a 421.5% increase[9] - Net unrealized holding gains on debt securities available for sale in Q3 2024 were $15.142 million, compared to a loss of $18.569 million in Q3 2023[9] - Reclassification adjustment for items included in net income in Q3 2024 was $51.017 million, compared to a loss of $268 thousand in Q3 2023[9] - Net loss attributable to Amerant Bancorp Inc. for the three months ended September 30, 2024, was $48.164 million, compared to a net income of $22.119 million for the same period in 2023[163] - Net loss before attribution of noncontrolling interest for the nine months ended September 30, 2024, was $32.6 million, compared to a net income of $48.7 million in the same period in 2023[16] - Provision for credit losses increased to $50.6 million in 2024 from $48.8 million in 2023[16] - Securities losses, net, significantly increased to $68.7 million in 2024 from $11.0 million in 2023[16] - Net cash provided by operating activities decreased to $4.7 million in 2024 from $41.0 million in 2023[16] - Net increase in loans was $788.6 million in 2024, compared to $271.0 million in 2023[16] Stockholders' Equity and Capital - Stockholders' equity rose to $902.89 million from $736.07 million year-over-year[5] - Retained earnings decreased to $569.13 million from $610.80 million year-over-year[5] - Accumulated other comprehensive loss improved to -$12.96 million from -$70.80 million year-over-year[5] - Common stock issuance in Q3 2024 raised $155.750 million, significantly boosting additional paid-in capital to $342.508 million[11] - Dividends paid totaled $9.038 million over the nine months ended September 30, 2024[11] - Stock-based compensation expense amounted to $4.245 million for the nine-month period[11] - Treasury stock repurchases totaled $7.556 million during the nine-month period[11] - Shares outstanding increased to 42,103,623 by September 30, 2024, up from 33,603,242 at the end of 2023[11] - Total stockholders' equity decreased from $705.7 million at December 31, 2022, to $719.8 million at September 30, 2023[14] - Net income attributable to Amerant Bancorp Inc. was $20.2 million for the three months ended March 31, 2023, $7.3 million for the three months ended June 30, 2023, and $22.1 million for the three months ended September 30, 2023[14] - Dividends paid totaled $3.0 million for each of the three months ended March 31, 2023, June 30, 2023, and September 30, 2023[14] - Stock-based compensation expense was $1.8 million for the three months ended March 31, 2023, $1.7 million for the three months ended June 30, 2023, and $1.5 million for the three months ended September 30, 2023[14] - Repurchase of Class A common stock totaled $566,000 for the three months ended March 31, 2023, $1.7 million for the three months ended June 30, 2023, and $2.7 million for the three months ended September 30, 2023[14] - Net loss attributable to noncontrolling interest shareholders was $244,000 for the three months ended March 31, 2023, $262,000 for the three months ended June 30, 2023, and $378,000 for the three months ended September 30, 2023[14] - Other comprehensive income was $6.3 million for the three months ended March 31, 2023, while other comprehensive loss was $12.6 million for the three months ended June 30, 2023, and $18.7 million for the three months ended September 30, 2023[14] Loans and Credit Quality - Loans held for investment, gross, increased to $6.964 billion as of September 30, 2024, from $6.873 billion as of December 31, 2023[5] - Loans pledged as collateral to secure advances from the FHLB amounted to $2.2 billion as of September 30, 2024 and December 31, 2023[71] - The company's securities pledged as collateral increased to $251.2 million as of September 30, 2024, up from $206.4 million as of December 31, 2023[68] - The company purchased single-family residential loans totaling $6.7 million in the three months ended September 30, 2024, and $17.9 million in the nine months ended September 30, 2024[74] - The company's international loans decreased to $41.7 million as of September 30, 2024, from $87.6 million as of December 31, 2023[73] - Total loans past due increased to $59.1 million as of September 30, 2024, compared to $67.3 million as of December 31, 2023[76][77] - Nonaccrual loans totaled $113.3 million as of September 30, 2024, up from $28.3 million as of December 31, 2023[79][80] - Loans held for sale increased to $597.8 million as of September 30, 2024, from $391.4 million as of December 31, 2023[82] - Commercial real estate loans held for investment were $2.0 billion in Florida, $175 million in Houston, $223 million in New York, and $54 million in other regions as of September 30, 2024[83] - Accrued interest receivable on total loans decreased to $41.6 million as of September 30, 2024, from $44.2 million as of December 31, 2023[84] - The ACL decreased by $15.6 million, or 16.3%, at September 30, 2024, compared to December 31, 2023, with the ACL as a percentage of total loans held for investment at 1.15%[90] - In the third quarter of 2024, the provision for credit losses on loans included $14.7 million to cover charge-offs, $2.3 million due to loan composition, and $0.8 million due to general credit quality and macroeconomic factor updates[91] - In the first nine months of 2024, the provision for credit losses on loans included $37.2 million to cover charge-offs, $14.6 million in new specific reserves for non-performing loans, and $6.5 million due to loan composition and volume changes[92] - Net proceeds from sales of loans held for investment in the three months ended September 30, 2024, were $35.6 million, with $28.7 million from Real Estate and $6.96 million from Commercial[93] - Net proceeds from sales of loans held for investment in the nine months ended September 30, 2024, were $103.0 million, with $30.4 million from Real Estate and $72.6 million from Commercial[93] - The ACL balance at the end of the period for the three months ended September 30, 2024, was $79.9 million, with $16.9 million in Real Estate, $38.9 million in Commercial, and $24.0 million in Consumer and Others[85] - The ACL balance at the end of the period for the nine months ended September 30, 2024, was $79.9 million, with $16.9 million in Real Estate, $38.9 million in Commercial, and $24.0 million in Consumer and Others[86] - The ACL balance at the end of the period for the nine months ended September 30, 2023, was $98.8 million, with $39.1 million in Real Estate, $32.9 million in Commercial, and $26.8 million in Consumer and Others[87] - The provision for credit losses on loans in the nine months ended September 30, 2023, was $48.2 million, with $13.7 million in Real Estate, $20.6 million in Commercial, and $13.9 million in Consumer and Others[89] - The Company had no new loan modifications to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and 2023[95] - Total non-owner occupied commercial real estate loans amounted to $1,688,308 thousand as of September 30, 2024, with $1,652,018 thousand classified as "Pass" and $34,374 thousand as "Special Mention"[104] - Multi-family residential loans totaled $351,815 thousand, all classified as "Pass" with no special mention or classified loans[104] - Land development and construction loans reached $421,489 thousand, with $100,245 thousand originated in 2024 and $131,974 thousand in revolving loans[104] - Single-family residential loans stood at $1,499,599 thousand, including $1,486,055 thousand classified as "Pass" and $13,544 thousand as "Substandard"[104] - Owner-occupied commercial real estate loans totaled $1,001,762 thousand, with $942,849 thousand classified as "Pass" and $29,603 thousand as "Special Mention"[104] - Total commercial loans amounted to $1,630,318 thousand, including $1,548,447 thousand classified as "Pass" and $69,429 thousand as "Substandard"[106] - Loans to financial institutions and acceptances totaled $92,489 thousand, all classified as "Pass" with no special mention or classified loans[106] - Total consumer loans and overdrafts amount to $278.391 million, with the largest portion being $107.835 million[107] - Total loans held for investment, gross, amount to $6.964 billion, with the largest portion being $1.374 billion[107] - Nonowner occupied commercial real estate loans classified as "Pass" total $1.616 billion, with the largest portion being $564.003 million[108] - Multi-family residential loans classified as "Pass" total $407.206 million, with the largest portion being $119.550 million[108] - Land development and construction loans classified as "Pass" total $300.378 million, with the largest portion being $141.466 million[108] - Single-family residential loans classified as "Pass" total $1.463 billion, with the largest portion being $454.011 million[108] - Owner occupied loans classified as "Pass" total $1.155 billion, with the largest portion being $414.263 million[108] - Special Mention loans for owner occupied properties total $15.723 million, with the largest portion being $7.926 million[108] - Classified Substandard loans for single-family residential properties total $2.8 million, with the largest portion being $2.416 million[108] - Total owner occupied loans, including all classifications, amount to $1.175 billion, with the largest portion being $424.719 million[108] - Total loans held for investment, gross amounted to $6,873,493 thousand, with commercial loans making up $1,503,187 thousand and consumer loans totaling $391,200 thousand[109] - Quarter-to-date gross charge-offs for commercial loans were $31,416 thousand, while consumer loans and overdrafts accounted for $4,175 thousand[110] - Year-to-date gross charge-offs for commercial loans reached $47,294 thousand, and consumer loans and overdrafts totaled $21,122 thousand[111] - Total commercial loans classified as "Pass" amounted to $661,979 thousand, while "Special Mention" and "Substandard" categories were $30,261 thousand and $22,971 thousand, respectively[109] - Consumer loans classified as "Pass" were $115,810 thousand, with only $41 thousand classified as "Substandard"[109] - Total loans to financial institutions and acceptances were $13,375 thousand, all classified as "Pass"[109] - Quarter-to-date gross charge-offs for real estate loans were minimal, with no significant amounts reported[110] - Year-to-date gross charge-offs for real estate loans were $591 thousand, primarily from multi-family residential loans[111] - Total year-to-date gross charge-offs across all loan categories were $69,007 thousand[111] - Total Quarter-To-Date Gross Charge-Offs for 2023 amounted to $15.819 million, with Commercial loans contributing $9.288 million and Consumer loans and overdrafts contributing $6.441 million[112] - Total Year-To-Date Gross Charge-Offs for 2023 reached $39.233 million, with Commercial loans accounting for $18.715 million and Consumer loans and overdrafts accounting for $20.389 million[113] - Collateral-dependent loans as of September 30, 2024, totaled $103.302 million, with Commercial real estate loans at $29.639 million and Commercial loans at $68.285 million[115] Deposits and Time Deposits - Time deposits in denominations of $100,000 or more increased to $1.4 billion at September 30, 2024, from $1.3 billion at December 31, 2023[119] - Time deposits in denominations of more than $250,000 rose to $758 million at September 30, 2024, from $693 million at December 31, 2023[119] - Brokered time deposits decreased to $702 million at September 30, 2024, from $720 million at December 31, 2023[119] - Large time deposits maturing in less than 3 months increased to $403.429 million (28.8%) at September 30, 2024, from $178.102 million (13.7%) at December 31, 2023[120] - Large time deposits maturing in 3 to 6 months increased to $458.906 million (32.7%) at September 30, 2024, from $239.843 million (18.4%) at December 31, 2023[120] - Large time deposits maturing in 6 to 12 months decreased to $373.825 million (26.7%) at September 30, 2024, from $698.897 million (53.6%) at December 31, 2023[120] - Large time deposits maturing in 1 to 3 years decreased to $141.167 million (10.1%) at September 30, 2024, from $174.792 million (13.4%) at December 31, 2023[120] Securities and Investments - Securities held by the company totaled $1.543 billion as of September 30, 2024, compared to $1.497 billion as of December 31, 2023[5] - The company held $6.9 million in US Treasury Bills as of September 30, 2024, with an average yield of 5.22%[45] - Restricted cash balances decreased to $10.1 million as of September 30, 2024, from $25.8 million at December 31, 2023[46] - Total debt securities available for sale as of September 30, 2024, had an amortized cost of $1.495 billion and an estimated fair value of $1.476 billion, with unrealized losses of $26.5 million[48] - Residential mortgage-backed securities as of September 30, 2024, had an amortized cost of $1.2 billion and a fair value of $1.1 billion[48] - Commercial mortgage-backed