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Jun 30, 2020
Amerant Q2 2020 Earnings Report
Amerant's financial performance declined in Q2 2020 due to higher provision for loan losses and lower net interest income, but operating income increased.
Key Takeaways
Amerant Bancorp Inc. reported a net loss of $15.3 million for the second quarter of 2020, compared to a net income of $12.9 million in the same period of 2019. However, operating income increased to $21.6 million, up 53.8% from $14.0 million in the second quarter of 2019.
Net loss of $15.3 million, compared to net income of $12.9 million in the same period of 2019.
Operating income increased to $21.6 million, up 53.8% from the same period of 2019.
Net interest income was $46.3 million, down 13.9% from the same period of 2019.
Noninterest income was $19.8 million, up 39.6% from the same period of 2019.
Forward Guidance
The current COVID-19 interest rate environment and the potential runoff of Amerant’s low-cost foreign deposits will continue to pressure NII and NIM, the Company is taking decisive action to manage these headwinds.
Positive Outlook
- Amerant continued to actively implement and manage floor rates in the loan portfolio
- Aggressively reprice deposits
- Leverage low-cost wholesale funding opportunities
- Maximize high-yield investments
- Seek to reduce asset sensitivity
Challenges Ahead
- The current COVID-19 interest rate environment will continue to pressure NII and NIM
- The potential runoff of Amerant’s low-cost foreign deposits will continue to pressure NII and NIM
- Difficult to estimate the extent of the impact of the COVID-19 pandemic on Amerant’s credit quality
- While the Company continues to offer customized loan payment relief options, including interest-only payments and forbearance options, which are not considered TDRs, it will continue to assess its ability to offer such programs over time.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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