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Dec 31, 2023
Amerant Q4 2023 Earnings Report
Amerant reported a net loss for the fourth quarter of 2023, influenced by a non-cash charge on the sale of commercial real estate loans, while highlighting strong organic loan and deposit growth and the completion of a core systems conversion.
Key Takeaways
Amerant Bancorp Inc. reported a net loss attributable to the Company of $17.1 million, or $0.51 per diluted share, for the fourth quarter of 2023. The results were impacted by a $30.0 million non-cash charge before taxes related to the sale of non-relationship, Houston-based commercial real estate loans. However, the company noted strong organic loan and deposit growth during the quarter.
Total assets increased to $9.7 billion, up 4.02% compared to 3Q23.
Total gross loans were $7.28 billion, an increase of 1.86% compared to 3Q23.
Total deposits were $7.9 billion, up 4.32% compared to 3Q23.
Net Interest Margin (NIM) was 3.72%.
Amerant
Amerant
Amerant Revenue by Geographic Location
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CapyFin.com Forward Guidance
Amerant's focus for 2024 shifts to executing its growth strategy, leveraging the completed core systems conversion and actions taken to position the company for projected interest rate declines.
Positive Outlook
- Strong organic loan and deposit growth.
- Completion of the conversion to new core systems.
- Actions taken to best position the Company for 2024 and the projected decline in interest rates.
- Focus on executing the growth strategy.
- Additional $2.2 billion in availability from the FHLB as of December 31, 2023
Challenges Ahead
- Net loss attributable to the Company of $17.1 million in Q4 2023.
- Non-cash charge of $30.0 million before taxes on the sale of non-relationship, Houston-based commercial real estate loans.
- Pre-provision net revenue (PPNR) decreased by 120.8% compared to 3Q23.
- Non-interest expense was up 70.3% compared to 3Q23.
- Return on average assets (ROA) was negative 0.71% in 4Q23.