Amerant Bancorp Inc (AMTB) Reports Q3 2023 Earnings: Net Income Rises to $22.1 Million
Amerant Bancorp Inc (NYSE:AMTB) reported a net income of $22.1 million in Q3 2023, a significant increase from $7.3 million in Q2 2023.
The company's total assets decreased by 1.8% to $9.3 billion compared to Q2 2023.
Amerant Bancorp Inc (NYSE:AMTB) declared a quarterly cash dividend of $0.09 per common share.
The company repurchased 142,888 shares for $2.7 million during Q3 2023.
On October 19, 2023, Amerant Bancorp Inc (NYSE:AMTB) released its Q3 2023 earnings report. The company reported a net income of $22.1 million, or $0.66 per diluted share, a significant increase from $7.3 million, or $0.22 per diluted share, in the second quarter of 2023.
Financial Highlights
Amerant Bancorp Inc (NYSE:AMTB) reported total assets of $9.3 billion, a decrease of $173.8 million, or 1.8%, compared to Q2 2023. Total gross loans were $7.14 billion, a decrease of $74.4 million, or 1.0%, compared to $7.22 billion in Q2 2023. Cash and cash equivalents were $309.0 million, down $136.1 million, or 30.6%, compared to $445.1 million in Q2 2023.
The company's total deposits were $7.55 billion, down $32.7 million, or 0.4%, compared to $7.58 billion in Q2 2023. However, organic deposit growth was $208 million, which helped enable reductions in higher-cost institutional deposits of $292 million. Time deposits increased $221.3 million as customers continued to seek higher returns on deposits.
Performance Analysis
Amerant Bancorp Inc (NYSE:AMTB) reported a decrease in total non-performing assets to $53.4 million, down $14.0 million, or 20.8%, compared to $67.4 million as of Q2 2023. The allowance for credit losses ("ACL") was $98.8 million, a decrease of $7.2 million, or 6.8%, compared to $106.0 million as of Q2 2023.
The company's net interest margin was 3.57% in Q3 2023 compared to 3.83% in Q2 2023. Net Interest Income was $78.6 million, down $5.3 million, or 6.3%, from $83.9 million in Q2 2023. The provision for credit losses was $8.0 million in Q3 2023, down $21.1 million, or 72.5%, compared to $29.1 million in Q2 2023.
Company's Commentary
We are pleased to report significantly improved operating results this quarter stated Jerry Plush, Chairman and CEO. Our team members continued to focus on deposits first as the top strategic priority, and by originating strong organic deposit growth again this quarter, that enabled us to further reduce higher cost institutional deposits. In the fourth quarter, we look forward to completing the long-awaited systems conversion and then being able to fully focus our efforts on business development and customer service.
Overall, Amerant Bancorp Inc (NYSE:AMTB) demonstrated a strong performance in Q3 2023 with a significant increase in net income and a focus on organic deposit growth. The company's strategic priority of "deposits first" has enabled it to reduce higher cost institutional deposits and improve its financial position.
This article first appeared on GuruFocus.
