Amerant Bancorp (AMTB) - 2019 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2019, was $11,931, an increase from $11,551 for the same period in 2018, representing a growth of about 3.3%[8] - For the nine months ended September 30, 2019, net income was $37,859,000, compared to $31,403,000 for the same period in 2018, representing a 20% increase[12] - Comprehensive income for the three months ended September 30, 2019, was $17,900,000, compared to $8,293,000 for the same period in 2018, indicating a significant increase of 115%[9] - Basic earnings per share for the three months ended September 30, 2019, was $0.28, up from $0.27 in the same period of 2018, reflecting a 3.7% increase[9] - Net interest income for the three months ended September 30, 2019, was $52,600, compared to $55,633 for the same period in 2018, reflecting a decrease of about 5.5%[8] - Noninterest income for the three months ended September 30, 2019, was $13,836, compared to $12,950 for the same period in 2018, indicating an increase of approximately 6.8%[8] Assets and Liabilities - Total assets as of September 30, 2019, were $7,864,260, a decrease from $8,124,347 as of December 31, 2018, representing a decline of approximately 3.2%[7] - Total liabilities as of September 30, 2019, were $7,038,509, down from $7,376,929 as of December 31, 2018, a decrease of approximately 4.6%[7] - The total stockholders' equity increased to $825,751 as of September 30, 2019, from $747,418 as of December 31, 2018, an increase of approximately 10.5%[8] - Cash and cash equivalents at the end of the period were $101,327,000, slightly down from $103,579,000 at the end of the same period in 2018[12] Loan Portfolio - The total loan portfolio amounted to $5,751.8 million, a decrease from $5,920.2 million as of December 31, 2018, reflecting a reduction of approximately 2.8%[42] - The company experienced a net increase in loans of $259,754,000 for the nine months ended September 30, 2019, compared to a decrease of $153,019,000 for the same period in 2018[12] - The allowance for loan losses decreased to $53,640 as of September 30, 2019, from $61,762 as of December 31, 2018, a reduction of about 13.4%[7] - The company reported a total of $4,497.9 million in single-family residential loans as of September 30, 2019, compared to $4,355.9 million in December 31, 2018, showing an increase of approximately 3.3%[42] - The company has approximately $24.3 million in loans to financial institutions and acceptances, down from $69 million in December 31, 2018, reflecting a significant reduction[42] Deposits and Interest - Total deposits decreased to $5,692,848 as of September 30, 2019, down from $6,032,686 as of December 31, 2018, a decline of approximately 5.6%[7] - Interest expense for the three months ended September 30, 2019, was $25,604, compared to $23,992 for the same period in 2018, reflecting an increase of about 6.7%[8] - The company paid $74,928,000 in interest for the nine months ended September 30, 2019, compared to $63,987,000 for the same period in 2018, reflecting an increase of 17%[13] Securities and Investments - The company reported net unrealized holding gains on securities available for sale of $37,457,000 for the nine months ended September 30, 2019, compared to a loss of $25,369,000 for the same period in 2018[9] - The estimated fair value of securities available for sale was $1,485.2 million, with an amortized cost of $1,470.7 million as of September 30, 2019[40] - The company reported a total unrealized loss of $6.442 million on its securities available for sale, with specific losses attributed to U.S. government-sponsored enterprise debt securities and corporate debt securities[34] Corporate Actions - The company completed its initial public offering (IPO) on December 21, 2018, and repurchased remaining Class B common stock held by its former parent company in March 2019[18] - The company changed its name from "Mercantil Bank Holding Corporation" to "Amerant Bancorp Inc." effective June 5, 2019[19] - The company has transitioned to a single segment management approach starting in Q2 2019, consolidating its operations under one reportable segment[17] Regulatory and Compliance - The Company's regulatory capital ratios continue to exceed regulatory minimums, ensuring it remains well-capitalized following the redemptions[75] - The effective combined federal and state tax rates for the nine months ended September 30, 2019, were 21.50%, down from 25.34% in 2018[90] Credit Quality and Risk Management - The company has made significant estimates regarding the allowance for loan losses and the fair values of securities, which could differ from actual results[23] - The company has implemented a revised credit card program to enhance credit quality, ceasing charge privileges for high-risk cardholders and requiring repayment by November 2019[44] - The company reported no charge-offs against the allowance for loan losses as a result of TDR loans during the nine months ended September 30, 2019[63]