Amerant Bancorp (AMTB) - 2025 Q1 - Quarterly Report

Financial Performance - Net income attributable to Amerant Bancorp Inc. for Q1 2025 was $11,958 thousand, compared to$10,568 thousand in Q1 2024, reflecting an increase of 13.2%[12] - The company reported comprehensive income of $24,490 thousand for Q1 2025, significantly higher than$5,480 thousand in Q1 2024[14] - Basic earnings per share for Q1 2025 was $0.28, a decrease from$0.32 in Q1 2024[14] - Net income for the three months ended March 31, 2025, was $11,958,000, an increase of 13.2$10,568,000 for the same period in 2024[17] - The efficiency ratio improved to 67.9% in the three months ended March 31, 2025, compared to 72.0% in the same period of 2024[194] Asset and Deposit Growth - Total assets increased to $10,169,688 thousand as of March 31, 2025, up from$9,901,734 thousand at December 31, 2024, representing a growth of 2.7%[11] - Total deposits grew to $8,154,978 thousand as of March 31, 2025, up from$7,854,595 thousand at December 31, 2024, marking a 3.8% increase[11] - Total interest-earning assets rose to $9,294,146 thousand in Q1 2025, up from$8,942,043 thousand in Q1 2024, representing an increase of about 3.9%[205] Income and Interest Metrics - Net interest income for Q1 2025 was $85,904 thousand, an increase of 10.4$77,968 thousand in Q1 2024[12] - Noninterest income increased to $19,525 thousand in Q1 2025, compared to$14,488 thousand in Q1 2024, a growth of 35.0%[12] - The net interest margin improved to 3.75% in Q1 2025 from 3.51% in Q1 2024, showing an enhancement of 24 basis points[207] - The cost of total deposits decreased to 2.60% in Q1 2025 from 3.00% in Q1 2024, reflecting a reduction of 40 basis points[207] Credit Losses and Provisions - Provision for credit losses rose to $18,446 thousand in Q1 2025, up from$12,400 thousand in Q1 2024, indicating a 48.5% increase[12] - The allowance for credit losses increased to $98,266 thousand as of March 31, 2025, up from$84,963 thousand at December 31, 2024[11] - The provision for credit losses on loans for the three months ended March 31, 2025, was $17.196 million, which included$13.9 million for specific reserves and $4.7 million for macroeconomic model adjustments[70] Loan Portfolio and Quality - Total loans held for investment decreased to$7.16 billion as of March 31, 2025, from $7.23 billion at December 31, 2024, representing a decline of approximately 1$103.71 million as of March 31, 2025, compared to $55.94 million at December 31, 2024, indicating a significant rise in delinquency[59] - Nonaccrual loans totaled$89.99 million as of March 31, 2025, compared to $72.72 million at December 31, 2024, reflecting an increase of approximately 23.7$13.3 million, or 15.7%, to $98.266 million as of March 31, 2025, compared to December 31, 2024[68] Strategic Initiatives and Changes - The company is in the process of dissolving its Cayman Bank subsidiary, expected to be completed in 2025[21] - In April 2025, the company announced a strategic transition to focus on in-footprint mortgage lending, planning to reduce FTE count from 77 to 20 within 120 days[156] - The company opened a new regional headquarters and banking center in West Palm Beach in April 2025, with additional locations planned in Miami Beach and downtown Tampa[155] Regulatory and Economic Environment - The company is subject to extensive regulation, which could limit activities and adversely affect earnings, alongside potential legal and regulatory changes impacting financial institutions[147] - The unemployment rate has slightly increased to just above 4%, with economists anticipating a potential recession in the latter half of 2025 due to tariff impacts[159][160] - The Federal Reserve has maintained steady interest rates despite inflation remaining above its 2% target, contributing to economic uncertainty[158]