Amerant Bancorp (US:AMTB)2023-05-01 16:00Financial Performance - Net interest income for the three months ended March 31, 2023, was $82,333 thousand, a 48.0% increase from $55,645 thousand in the same period of 2022 [8]. - Net income attributable to Amerant Bancorp Inc. was $20,186 thousand for the three months ended March 31, 2023, up from $15,379 thousand in the same period of 2022, reflecting a growth of 31.5% [10]. - The company reported a comprehensive income of $26,502 thousand for Q1 2023, compared to a loss of $(24,262) thousand in Q1 2022 [11]. - Basic and diluted earnings per share for Q1 2023 were both $0.60, compared to $0.44 in Q1 2022, reflecting a 36.4% increase [11]. - Net income for the three months ended March 31, 2023, was $20,186,000, compared to $15,379,000 for the same period in 2022, representing a year-over-year increase of 31.5% [18]. Asset and Liability Management - Total assets increased to $9,495,302 thousand as of March 31, 2023, up from $9,127,804 thousand at December 31, 2022, representing a growth of 4.0% [5]. - Total liabilities increased to $8,766,246 thousand as of March 31, 2023, from $8,422,078 thousand at December 31, 2022, an increase of 4.1% [5]. - Total stockholders' equity as of March 31, 2023, was $729,056,000, up from $705,726,000 at the end of 2022, indicating a growth of 3.3% [14]. Deposits and Funding - Total deposits increased to $7,286,726 thousand as of March 31, 2023, compared to $7,044,199 thousand at December 31, 2022, an increase of 3.4% [5]. - The company reported a net increase in demand, savings, and money market accounts of $41,442,000 for the first quarter of 2023, compared to $150,383,000 in the same period of 2022 [18]. - The total outstanding advances from the Federal Home Loan Bank (FHLB) increased to $1.052 billion as of March 31, 2023, from $906 million at December 31, 2022, marking a rise of 16.1% [149]. Credit Quality and Losses - The provision for credit losses was $11,700 thousand for Q1 2023, compared to a reversal of $(9,275) thousand in Q1 2022, indicating a significant shift in credit loss expectations [8]. - The allowance for credit losses was reported at $56,051,000, which was recast to $75,450,000, reflecting a change of $19,399,000 due to the adoption of new accounting standards [44]. - The provision for credit losses for the three months ended March 31, 2023, included $7.5 million for additional reserve requirements due to loan charge-offs and credit quality [106]. - The company continues to monitor credit quality indicators, including trends in risk ratings, loan payment status, and nonperforming loans [113]. Loan Portfolio - As of March 31, 2023, the company had $7.05 billion in total loans held for investment, an increase from $6.86 billion as of December 31, 2022, representing a growth of approximately 2.8% [82]. - The company reported a total of $550.4 million in consumer loans and overdrafts as of March 31, 2023, a decrease from $604.5 million as of December 31, 2022, reflecting a decline of approximately 8.9% [82]. - The company’s commercial loans increased to $1.5 billion as of March 31, 2023, from $1.4 billion as of December 31, 2022, marking a growth of about 8.5% [82]. - The total loans held for sale at fair value were $65.3 million as of March 31, 2023, an increase from $62.4 million as of December 31, 2022, reflecting a growth of approximately 4.5% [98]. Capital Management - The company repurchased $566,000 worth of Class A common stock during the first quarter of 2023, down from $54,820,000 in the same quarter of 2022, indicating a shift in capital allocation strategy [18]. - A cash dividend of $0.09 per share was declared on January 18, 2023, resulting in an aggregate payout of approximately $3.0 million [32]. - The company issued $30.0 million in subordinated notes with a fixed interest rate of 4.25%, which will transition to a floating rate after March 15, 2027 [153]. Interest Rate and Derivatives - The Company had five interest rate swap contracts with a total notional amount of $64.2 million, maturing in the third and fourth quarters of 2025 [167]. - The aggregate fair value of interest rate swaps in a liability position was $51.2 million as of March 31, 2023, down from $67.1 million as of December 31, 2022 [174]. - The Company recognized unrealized gains of $15 thousand and unrealized losses of $0.2 million related to interest rate swap contracts for the three months ended March 31, 2023 and 2022, respectively [167]. Operational Expenses - The company incurred restructuring costs of approximately $3.4 million in Q1 2023, compared to $6.1 million in Q1 2022, indicating a reduction in restructuring expenses [27]. - The total lease cost for the three months ended March 31, 2023, was $4.173 million, compared to $4.060 million for the same period in 2022 [179]. Taxation - The effective combined federal and state tax rates for Q1 2023 and Q1 2022 were 21.00% and 21.10%, respectively [195].