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Amerant Bancorp (AMTB) - 2024 Q4 - Annual Results
AMTBAmerant Bancorp (AMTB)2025-01-22 22:01

Financial Performance - Net income attributable to the company was 16.9millioninQ42024,comparedtoanetlossof16.9 million in Q4 2024, compared to a net loss of 48.2 million in Q3 2024[1] - Full-year 2024 net loss attributable to the company was 15.8million,comparedtonetincomeof15.8 million, compared to net income of 32.5 million in 2023[1] - Net income attributable to Amerant Bancorp Inc. for 2024 was a loss of 15,752thousand,comparedtoaprofitof15,752 thousand, compared to a profit of 32,490 thousand in 2023[22] - Net income attributable to Amerant Bancorp Inc. for Q4 2024 was 16.881million,asignificantimprovementfromalossof16.881 million, a significant improvement from a loss of 48.164 million in Q3 2024[30] - Net income attributable to Amerant Bancorp Inc. for Q4 2024 was 16.881million,comparedtoalossof16.881 million, compared to a loss of 48.164 million in Q3 2024[32] - Core net income for Q4 2024 was 21.160million,upfrom21.160 million, up from 9.249 million in Q3 2024[32] - Basic earnings per share for Q4 2024 was 0.40,comparedtoalossof0.40, compared to a loss of 1.43 in Q3 2024[32] - Core basic earnings per share for Q4 2024 was 0.50,upfrom0.50, up from 0.27 in Q3 2024[32] - Core ROA for Q4 2024 was 0.83%, compared to 0.37% in Q3 2024[32] - Core ROE for Q4 2024 was 9.25%, up from 4.80% in Q3 2024[32] - Efficiency ratio for Q4 2024 was 74.91%, compared to 228.74% in Q3 2024[32] - Core efficiency ratio for Q4 2024 was 64.71%, down from 69.29% in Q3 2024[32] - Total after-tax non-routine items in noninterest expense for Q4 2024 was 11.739million,upfrom11.739 million, up from 4.340 million in Q3 2024[32] - Total after-tax non-routine items in noninterest income for Q4 2024 was a loss of 7.460million,comparedtoagainof7.460 million, compared to a gain of 53.073 million in Q3 2024[32] - The company recorded a pre-tax net loss of 68.5millioninQ32024duetoaninvestmentportfoliorepositioning,withanadditional68.5 million in Q3 2024 due to an investment portfolio repositioning, with an additional 8.1 million loss in Q4 2024[35] - Securities losses in 2024 amounted to 76.86million,primarilyduetoinvestmentportfoliorepositioning[55]NetInterestIncomeandMargin−Netinterestincomeincreasedby876.86 million, primarily due to investment portfolio repositioning[55] Net Interest Income and Margin - Net interest income increased by 8% to 87.6 million in Q4 2024, while provision for credit losses declined by 48% to 9.9million[2]−NetInterestMargin(NIM)improvedto3.759.9 million[2] - Net Interest Margin (NIM) improved to 3.75% in Q4 2024, up from 3.49% in Q3 2024[5] - Net interest margin (NIM) for Q4 2024 increased to 3.75%, up from 3.49% in Q3 2024[24] - Net interest income for the year ended December 31, 2024, was 325,957 thousand, slightly down from 326,464thousandin2023[22]−Netinterestincomegrewto326,464 thousand in 2023[22] - Net interest income grew to 87.63 million in Q4 2024, compared to 81.68millioninQ42023[46]−Netinterestmarginimprovedto3.7581.68 million in Q4 2023[46] - Net interest margin improved to 3.75% in Q4 2024, up from 3.72% in Q4 2023[46] - Net interest income slightly decreased to 325.96 million in 2024 from 326.46millionin2023[49]−Netinterestmargindecreasedto3.58326.46 million in 2023[49] - Net interest margin decreased to 3.58% in 2024 from 3.76% in 2023[49] Assets and Loans - Total assets decreased by 4.40% to 9.9 billion in Q4 2024, primarily due to the sale of the Houston Franchise[4] - Total gross loans decreased by 3.90% to 7.27billioninQ42024,whiletotaldepositsdecreasedby3.177.27 billion in Q4 2024, while total deposits decreased by 3.17% to 7.9 billion[4] - Total assets increased to 9,897,691thousandasofDecember31,2024,comparedto9,897,691 thousand as of December 31, 2024, compared to 9,716,327 thousand in December 2023[22] - Total deposits decreased to 7,854,069thousandasofDecember31,2024,from7,854,069 thousand as of December 31, 2024, from 7,894,863 thousand in December 2023[22] - Core deposits stood at 5,619,624thousandasofDecember31,2024,comparedto5,619,624 thousand as of December 31, 2024, compared to 5,597,766 thousand in December 2023[22] - Total assets increased to 9,897.69millionasofDecember31,2024,comparedto9,897.69 million as of December 31, 2024, compared to 9,716.33 million in 2023[34] - Total assets reached 10.09billioninQ42024,upfrom10.09 billion in Q4 2024, up from 9.51 billion in Q4 2023[45] - Total assets decreased to 9,897.69millionasofDecember31,2024,comparedto9,897.69 million as of December 31, 2024, compared to 10,353.13 million in September 2024, reflecting a 4.4% decline[68] - Loans held for investment increased to 7,224.37millioninDecember2024,upfrom7,224.37 million in December 2024, up from 6,964.17 million in September 2024, a 3.7% growth[68] - Commercial real estate loans (non-owner occupied) decreased slightly to 1,678.47millioninDecember2024from1,678.47 million in December 2024 from 1,688.31 million in September 2024[70] - Consumer loans and overdrafts decreased to 273.01millioninDecember2024from273.01 million in December 2024 from 278.39 million in September 2024, a 1.9% decline[70] - Loans held for sale at the lower of fair value or cost were 553.94millioninSeptember2024,butdroppedto553.94 million in September 2024, but dropped to 0 in December 2024 due to the sale of the Houston franchise[73] - Mortgage loans held for sale at fair value increased to 42.91millioninDecember2024from42.91 million in December 2024 from 43.85 million in September 2024[73] - Total deposits decreased to 7,854.07millioninDecember2024from7,854.07 million in December 2024 from 8,110.94 million in September 2024, a 3.2% decline[68] - Advances from the Federal Home Loan Bank decreased to 745.00millioninDecember2024from745.00 million in December 2024 from 915.00 million in September 2024, an 18.6% reduction[68] - Retained earnings increased to 582.23millioninDecember2024from582.23 million in December 2024 from 569.13 million in September 2024, a 2.3% growth[68] - Accumulated other comprehensive loss worsened to (39.81)millioninDecember2024from(39.81) million in December 2024 from (12.96) million in September 2024[68] - Total Non-Accrual Loans increased to 100,022thousandinDecember2024from100,022 thousand in December 2024 from 28,276 thousand in December 2023, showing a significant rise in non-performing loans[75] - Total Past Due Accruing Loans decreased to 4,079thousandinDecember2024from4,079 thousand in December 2024 from 6,124 thousand in December 2023, indicating a reduction in overdue loans[75] - Total Non-Performing Assets stood at 122,175thousandinDecember2024,downfrom122,175 thousand in December 2024, down from 129,438 thousand in September 2024[77] - Domestic deposits decreased to 5,277,763thousandinDecember2024from5,277,763 thousand in December 2024 from 5,553,336 thousand in September 2024, reflecting a decline in domestic deposit base[82] - Foreign deposits, particularly from Venezuela, remained stable at 1,889,331thousandinDecember2024,comparedto1,889,331 thousand in December 2024, compared to 1,887,282 thousand in September 2024[82] - Total deposits decreased to 7,854,069thousandinDecember2024from7,854,069 thousand in December 2024 from 8,110,944 thousand in September 2024, showing a contraction in overall deposit base[82] - Commercial loans categorized as Substandard Doubtful increased to 66,605thousandinDecember2024from66,605 thousand in December 2024 from 69,429 thousand in September 2024, indicating a slight improvement in credit quality[79] - Owner-occupied real estate loans in the Substandard Doubtful category increased to 24,097thousandinDecember2024from24,097 thousand in December 2024 from 29,310 thousand in September 2024, showing a reduction in riskier loans[79] - Total loans categorized as Special Mention and Substandard Doubtful decreased to 131,105thousandinDecember2024from131,105 thousand in December 2024 from 190,618 thousand in September 2024, reflecting an overall improvement in loan quality[79] - The company did not have any loans categorized as "Loss" as of December 2024, indicating no write-offs during the period[79] Credit Losses and Provisions - Provision for credit losses on loans in Q4 2024 was 9.7million,comparedto9.7 million, compared to 17.9 million in Q3 2024, 17.7millioninQ22024,and17.7 million in Q2 2024, and 12.4 million in Q1 2024[27] - Provision for unfunded commitments (contingencies) in Q4 2024 was 0.2million,comparedto0.2 million, compared to 1.1 million in Q3 2024 and 1.5millioninQ22024[27]−TheProvisionforLoanLossesfortheyearendedDecember31,2024,was1.5 million in Q2 2024[27] - The Provision for Loan Losses for the year ended December 31, 2024, was 60.5 million, slightly lower than 61.3millionin2023[27]−Allowanceforcreditlossesincreasedto61.3 million in 2023[27] - Allowance for credit losses increased to 84,963 thousand as of December 31, 2024, from 79,890thousandinSeptember2024[22]−Allowanceforcreditlossestototalnon−performingloansdecreasedto81.6279,890 thousand in September 2024[22] - Allowance for credit losses to total non-performing loans decreased to 81.62% in Q4 2024, down from 93.51% in Q2 2024[24] Noninterest Income and Expenses - Noninterest income for 2024 was 9,909 thousand, a significant drop from 87,496thousandin2023[22]−TotalnoninterestincomeforQ42024was87,496 thousand in 2023[22] - Total noninterest income for Q4 2024 was 23.684 million, compared to a loss of 47.683millioninQ32024[30]−CorenoninterestincomeforQ42024was47.683 million in Q3 2024[30] - Core noninterest income for Q4 2024 was 17.820 million, slightly lower than 20.801millioninQ32024[30]−CorenoninterestexpensesforQ42024were20.801 million in Q3 2024[30] - Core noninterest expenses for Q4 2024 were 68.238 million, down from 70.536millioninQ32024[30]−Totalnoninterestincomefor2024was70.536 million in Q3 2024[30] - Total noninterest income for 2024 was 9.91 million, a significant drop from 87.5millionin2023[54]−GainonsaleofHoustonFranchisecontributed87.5 million in 2023[54] - Gain on sale of Houston Franchise contributed 12.64 million to noninterest income in 2024[54] - Mortgage banking income for Q4 2024 was 1.1million,comparedto1.1 million, compared to 2.8 million in Q3 2024 and 0.6millioninQ42023[56]−TotalnoninterestexpenseforQ42024was0.6 million in Q4 2023[56] - Total noninterest expense for Q4 2024 was 83.4 million, a 9.4% increase from Q3 2024 (76.2million)anda2476.2 million) and a 24% decrease from Q4 2023 (109.7 million)[59] - Salaries and employee benefits accounted for 42.3% of total noninterest expense in Q4 2024, totaling 35.3million[59]−Lossesonloansheldforsalewere35.3 million[59] - Losses on loans held for sale were 12.6 million in Q4 2024, compared to 37.5millioninQ42023,representinga66.437.5 million in Q4 2023, representing a 66.4% decrease[59] - Professional and other services fees increased to 14.3 million in Q4 2024, up 4.4% from Q3 2024 and 0.8% from Q4 2023[59] - The company incurred 1.4millioninexpensesrelatedtotheHoustonTransactioninQ42024[60]−Fixedassetsimpairmentchargeof1.4 million in expenses related to the Houston Transaction in Q4 2024[60] - Fixed assets impairment charge of 3.4 million was recorded in 2024 in connection with the Houston Transaction[61] - Legal expenses related to the Houston Transaction totaled 0.1millioninQ42024and0.1 million in Q4 2024 and 0.4 million for the full year 2024[62] - Broker fees associated with the Houston Transaction were 1.0millioninQ42024and1.0 million in Q4 2024 and 1.3 million for the full year 2024[66] - Amerant Mortgage-related expenses were 3.7millioninQ42024,comparedto3.7 million in Q4 2024, compared to 3.5 million in Q4 2023[66] Dividends and Shareholder Equity - The company declared a cash dividend of 0.09pershare,payableonFebruary28,2025[7]−Cashdividenddeclaredpercommonshareremainedsteadyat0.09 per share, payable on February 28, 2025[7] - Cash dividend declared per common share remained steady at 0.36 for both 2024 and 2023[22] - The company declared cash dividends of 0.09pershareinQ42024,totaling0.09 per share in Q4 2024, totaling 3.8 million, compared to 3.0millionperquarterinpreviousperiods[27]−Tangiblecommonstockholders′equityroseto3.0 million per quarter in previous periods[27] - Tangible common stockholders' equity rose to 866.15 million in December 2024, up from 711.04millioninDecember2023[34]−Tangiblecommonequityratioimprovedto8.77711.04 million in December 2023[34] - Tangible common equity ratio improved to 8.77% in December 2024 from 7.34% in December 2023[34] - Stockholders' equity increased to 910.16 million in Q4 2024, compared to 736.62millioninQ42023[46]Non−GAAPMeasuresandForward−LookingStatements−Thecompanyusesnon−GAAPfinancialmeasuressuchas"pre−provisionnetrevenue(PPNR)","corepre−provisionnetrevenue(CorePPNR)",and"coreearningspershare"toevaluateperformanceandprovidesupplementalinformationtoinvestors[17][18]−Non−GAAPmeasuresareusedtoaccountforrestructuringactivities,non−corebankingactivities,andothernon−routineactionsaimedatimprovingcustomerserviceandoperatingperformance[18]−Thecompany′sunauditedfinancialinformationforinterimperiodsmaynotreflectthefullfiscalyearresultsorfinancialcondition[16]−Forward−lookingstatementsinvolverisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromprojectedoutcomes[14]−Thecompany′sforward−lookingstatementsarequalifiedbycautionarynoticesandriskfactorsdetailedinSECfilings[14][15]LoanPortfolioandYield−Loanportfolionetincomeincreasedto736.62 million in Q4 2023[46] Non-GAAP Measures and Forward-Looking Statements - The company uses non-GAAP financial measures such as "pre-provision net revenue (PPNR)", "core pre-provision net revenue (Core PPNR)", and "core earnings per share" to evaluate performance and provide supplemental information to investors[17][18] - Non-GAAP measures are used to account for restructuring activities, non-core banking activities, and other non-routine actions aimed at improving customer service and operating performance[18] - The company's unaudited financial information for interim periods may not reflect the full fiscal year results or financial condition[16] - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projected outcomes[14] - The company's forward-looking statements are qualified by cautionary notices and risk factors detailed in SEC filings[14][15] Loan Portfolio and Yield - Loan portfolio net income increased to 128.91 million with a yield of 7.00% in Q4 2024, compared to 127.09millionand7.09127.09 million and 7.09% yield in Q4 2023[45] - Debt securities available for sale income rose to 16.07 million with a yield of 4.75% in Q4 2024, up from 11.60millionand4.3411.60 million and 4.34% yield in Q4 2023[45] - Total interest-earning assets reached 9.30 billion with a yield of 6.54% in Q4 2024, compared to 8.72billionand6.628.72 billion and 6.62% yield in Q4 2023[45] - Loan portfolio net income increased to 505.5 million in 2024 from 475.4millionin2023,withayieldrisefrom6.78475.4 million in 2023, with a yield rise from 6.78% to 7.06%[49] - Total interest-earning assets grew to 9.1 billion in 2024, up from 8.68billionin2023,withayieldincreasefrom6.328.68 billion in 2023, with a yield increase from 6.32% to 6.54%[49] - Non-performing loans averaged 101.0 million in Q4 2024, up from 35.1millioninQ42023[51]−Averagenon−performingloanstototalloansratioincreasedto1.0335.1 million in Q4 2023[51] - Average non-performing loans to total loans ratio increased to 1.03% in 2024 from 0.48% in 2023[49] Restructuring and Non-Routine Items - Restructuring of the BOLI program in Q4 2023 resulted in 4.6 million in additional expenses, including a 0.7millionreductionincashsurrendervalueand0.7 million reduction in cash surrender value and 2.8 million in income tax expense[36] - Nonrecurrent expenses related to the engagement of FIS totaled 1.6millioninQ42023and1.6 million in Q4 2023 and 6.4 million for the full year 2023[39] - The company incurred 12.6millioninlossesonthesaleofaportfolioof323business−purposeresidentialmortgageloansin2024[43]−Fairvalueadjustmentsof12.6 million in losses on the sale of a portfolio of 323 business-purpose residential mortgage loans in 2024[43] - Fair value adjustments of 35.5 million were recorded in 2023 for Houston-based CRE loans held for sale[43] - Income tax effect on nonroutine items was calculated using estimated tax rates of 27.14% and 22.50% for 2024[43] - Other intangible assets primarily consist of naming rights and mortgage servicing rights, totaling 2.0millionand2.0 million and 1.5 million, respectively, as of December 31, 2024[43] Capital and Liquidity - Total capital ratio increased to 13.43% in Q4 2024, up from 12.72% in Q3 2024[24] - Excess of average interest-earning assets over average interest-bearing liabilities grew to 1.93billioninQ42024,upfrom1.93 billion in Q4 2024, up from 1.69 billion in Q4 2023[46] - The company completed a public offering of 8,684,210 shares of Class A common stock at $19.00 per share on September 27, 2024[27]