Amerant Bancorp Reports $15.7 Million Net Loss for 2024, Total Assets Increase to $9.9 Billion

Amerant Bancorp Inc. reported a net loss of $15.7 million, or $0.44 per diluted share, for the year ended December 31, 2024, compared to a net income of $32.5 million, or $0.96 per diluted share, in 2023. This significant decrease was primarily attributed to lower noninterest income and a slight decrease in net interest income, partially offset by lower noninterest expenses and a slightly lower provision for credit losses. Total assets increased by $185.4 million (1.9%) to $9.9 billion, while total deposits decreased by $40.3 million (0.5%) to $7.9 billion. Cash and cash equivalents increased substantially by $268.5 million (83.4%) to $590.4 million.

The decrease in noninterest income, from $87.5 million in 2023 to $9.9 million in 2024, resulted from higher securities losses due to a securities portfolio repositioning, lower gains on early extinguishment of FHLB advances, and derivative losses. These decreases were partially offset by gains from the sale of Houston banking operations, increased BOLI income following a restructuring, and higher income from other sources. Noninterest expense decreased by $11.9 million (3.8%) to $299.5 million, primarily due to lower losses on loans held for sale and lower telecommunications and data processing expenses.

During 2024, Amerant opened new banking centers in Fort Lauderdale and Miami, and a regional headquarters office in Broward County. The company also signed letters of intent for additional banking centers in Miami Beach and Tampa, and a new regional headquarters office in Palm Beach County, with anticipated openings in 2025. Significant developments included the completion of a public offering of 8,684,210 shares of Class A common stock, raising approximately $165 million in gross proceeds, and the sale of its Houston banking operations to MidFirst Bank for a final purchase price that included a $12.5 million deposit premium. The company also repurchased 344,326 shares of Class A common stock at a weighted average price of $21.94 per share.

Key operational indicators included a loan-to-deposit ratio of 92.6% at the end of 2024, compared to 92.0% at the end of 2023. Assets under management and custody increased by $600.9 million (26.3%) to $2.9 billion. The company employed 698 full-time equivalent employees at the end of 2024. Amerant's non-performing assets increased to $122.2 million, while its allowance for credit losses decreased to $85 million. The efficiency ratio increased to 89.17% in 2024 from 75.21% in 2023. Return on average assets was negative 0.16% in 2024, compared to 0.34% in 2023, and return on average equity was negative 1.99% in 2024, compared to 4.39% in 2023.

The company's outlook is not explicitly stated in the provided 10-K filing, but the filing does highlight various risk factors that could materially affect future results, including liquidity risks, credit and interest rate risks, operational risks, cybersecurity threats, and regulatory and legal matters. The filing also notes that the company anticipates its total assets may exceed $10 billion in 2025, triggering additional regulatory requirements.