Amerant Bancorp (US:AMTB)2025-10-31 20:57Financial Performance - Net income attributable to Amerant Bancorp Inc. for the three months ended September 30, 2025, was $14,756 thousand, a significant recovery from a net loss of $48,164 thousand in the same period of 2024[11]. - For the nine months ended September 30, 2025, the net income was $49.716 million, a significant improvement compared to a net loss of $32.633 million in the same period of 2024[16]. - Basic earnings per share for the three months ended September 30, 2025, was $0.35, compared to a loss of $1.43 per share in the same period of 2024[12]. - The net income attributable to Amerant Bancorp Inc. for the three months ended September 30, 2025, was $14.76 million, compared to $23.00 million for the three months ended June 30, 2025[14]. - The company reported a net unrealized holding gain on debt securities available for sale of $24.9 million for the three months ended September 30, 2025[134]. Asset and Liability Management - Total assets increased to $10,410,199 thousand as of September 30, 2025, up from $9,901,734 thousand at December 31, 2024, representing a growth of 5.1%[10]. - Total liabilities increased to $9,465,259 thousand as of September 30, 2025, from $9,011,267 thousand at December 31, 2024, reflecting a growth of 5.0%[10]. - The company’s retained earnings increased to $620,542 thousand as of September 30, 2025, up from $582,231 thousand at December 31, 2024, indicating a positive trend in profitability[10]. - As of September 30, 2025, Amerant Bancorp's total stockholders' equity was $944.94 million, a decrease from $906.26 million at June 30, 2025[14]. - The estimated fair value of loans as of September 30, 2025, was $2.65 billion, compared to a carrying value of $2.66 billion[151]. Credit Quality and Loss Provisions - Provision for credit losses decreased to $14,600 thousand for the three months ended September 30, 2025, down from $19,000 thousand in the same period of 2024, indicating improved credit quality[11]. - The Allowance for Credit Losses (ACL) increased by $10.0 million, or 11.7%, to $94.9 million as of September 30, 2025, compared to December 31, 2024[75]. - The ACL as a percentage of total loans held for investment rose to 1.37% at September 30, 2025, up from 1.18% at December 31, 2024[75]. - Nonaccrual loans totaled $122.9 million as of September 30, 2025, compared to $100.0 million as of December 31, 2024, representing an increase of 22.9%[67]. - The company believes the ACL is sufficient to absorb expected credit losses in the loan portfolio as of September 30, 2025[85]. Deposits and Funding - Total deposits rose to $8,300,969 thousand as of September 30, 2025, compared to $7,854,595 thousand at December 31, 2024, marking an increase of 5.7%[10]. - Time deposits of $100,000 or more totaled approximately $1.3 billion as of September 30, 2025, compared to $1.27 billion as of December 31, 2024[111]. - Time deposits maturing in less than 3 months accounted for 40.1% of total time deposits as of September 30, 2025, up from 30.4% as of December 31, 2024[112]. - The company reported cash paid for interest of $184.259 million for the nine months ended September 30, 2025, down from $207.389 million in 2024[17]. - The loan to deposit ratio was 83.6% as of September 30, 2025, down from 92.6% at December 31, 2024[208]. Securities and Investments - The company reported total debt securities available for sale of $2,122.416 million as of September 30, 2025, with an amortized cost of $2,132.882 million[46]. - The company reported cash held as collateral for derivatives margin calls of $5.9 million as of September 30, 2025[128]. - The total notional amount of derivative instruments was $3.52 billion as of September 30, 2025, with fair values of $40.8 million in assets and $39.9 million in liabilities[116]. - The company recognized unrealized gains of $0.1 million in Q3 2025 related to interest rate swap contracts, compared to $0.2 million in Q3 2024[118]. - The fair value of other real estate owned (OREO) is reported at $15,606 thousand as of September 30, 2025, with total write-downs of $1,872 thousand[141]. Operational Changes and Strategic Focus - The company plans to dissolve its Cayman Bank subsidiary, with completion expected in 2025 pending regulatory approval[19]. - The company is transitioning its mortgage business to focus on Florida, reducing its mortgage-focused full-time equivalent count from 77 to 17[20]. - The Company is executing a plan for the dissolution of the Cayman Bank, expected to be completed in 2025[164]. - The Company opened a new banking center in Miami Beach in September 2025 and plans to open another later this year[167]. - The strategic focus includes updates on the mortgage business and Amerant Mortgage, LLC, indicating potential market expansion[154]. Economic and Market Conditions - The economic outlook remains uncertain, with signs of an economic slowdown and elevated recession odds compared to long-term averages[174]. - Job growth showed negative trends in the third quarter of 2025, indicating a sharp deceleration in employment[173]. - The Federal Reserve cut rates by 25 basis points in both the third quarter of 2025 and on October 29, 2025[172]. - The Company has not experienced a material impact on its business or financial condition despite industry volatility[176]. - Noninterest expenses generally increase as the business grows, with various components including salaries, occupancy, and professional services[190].