Amerant Bancorp (AMTB) AI Stock Analysis

• Market Cap: $805.06M
• Dividend Yield: 1.96%
• Average Volume (3M): 162.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -1.44%
• EPS Growth: -158.03%
• Country: US
• Employees: 698
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): -0.57
• Shares Outstanding: 38,986,100
• 10 Day Avg. Volume: 165,021
• 30 Day Avg. Volume: 162,197
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.63
• Price to Cash Flow (P/CF): 2.80
• P/FCF Ratio: 1.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.67
• Price Target Upside: 56.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Amerant Bancorp's overall stock score reflects significant financial challenges, with negative profitability and cash flow being major concerns. While the earnings call and corporate events highlight strategic growth plans and improvements in key financial metrics, technical analysis indicates bearish momentum. Valuation remains challenging with a negative P/E ratio. Continued focus on strategic growth and operational efficiency will be key to improving financial health.

Positive Factors

Analyst Upgrade

Analyst upgrades AMTB to Overweight with a revised target price of $25, reflecting higher '25E EPS and assuming peer multiples.

Capital Raise

The successful $165M growth equity raise provides ample capital to accelerate double-digit loan growth.

Negative Factors

Asset Quality

Reduced asset quality volatility remains critical to rerating the stock, with related improvements becoming a more meaningful part of the story as 2025 progresses.

Amerant Bancorp Business Overview & Revenue Model

Company Description

Amerant Bancorp Inc. operates as the bank holding company for Amerant Bank, N.A. that provides banking products and services to individuals and businesses in the United States and internationally. The company offers checking, savings, and money market accounts; and certificates of deposits. It also provides variable and fixed rate commercial real estate loans; loans secured by owner-occupied properties; loans to domestic and foreign individuals primarily secured by personal residence; working capital loans, asset-based lending, participations in shared national credits, purchased receivables, and small business administration loans; loans to financial institutions and acceptances; and consumer loans and overdrafts, such as automobile, personal, or loans secured by cash or securities and revolving credit card agreements. In addition, the company offers trust and estate planning products and services to high-net-worth customers, brokerage and investment advisory services in global capital markets, and wealth management and fiduciary services. Further, it provides debit and credit cards, night depositories, direct deposits, cashier's checks, safe deposit boxes, letters of credit, and treasury management services, including wire transfer, remote deposit capture, and automated clearinghouse services; derivative instruments; and online and mobile banking, account balances, statements and other documents, online transfers and bill payment, and electronic delivery of customer statements services, as well as automated teller machines, and banking by mobile devices, telephone, and mail. As of December 31, 2021, the company operated 24 banking centers comprising 17 in Florida and 7 in Texas. It also operates loan production offices in Tampa, Florida. The company was formerly known as Mercantil Bank Holding Corporation and changed its name to Amerant Bancorp Inc. in June 2019. Amerant Bancorp Inc. was founded in 1979 and is headquartered in Coral Gables, Florida.

How the Company Makes Money

Amerant Bancorp generates revenue through various channels, primarily through its interest income from loans and investment securities. The company earns interest income by providing loans to individuals and businesses, charging interest over the term of the loan. Additionally, Amerant Bancorp invests in securities, which provide interest income and contribute to its earnings. Non-interest income is another significant revenue stream, derived from fees and service charges on deposit accounts, transaction-based fees, and wealth management services. The bank's strategic partnerships with financial service providers and its focus on expanding its client base also play a crucial role in enhancing its revenue. Furthermore, Amerant Bancorp continuously seeks to optimize its operational efficiency and expand its product offerings to support sustained growth and profitability.

Amerant Bancorp Financial Statement Overview

Summary

Amerant Bancorp is facing financial difficulties, with negative net income and declining EBIT leading to negative profit margins. Despite revenue growth, profitability remains a concern. The balance sheet shows a strong equity position with no debt but lacks profitability due to negative net income. Cash flow is also challenged with a significant reduction in operating cash flow and negative free cash flow growth.

Income Statement

Amerant Bancorp's income statement reveals a challenging financial period for TTM (Trailing-Twelve-Months) ending 2024 with a negative net income and declining EBIT, resulting in a negative net profit margin of -4.49% and EBIT margin of -13.72%. Although there was revenue growth from 2023 to 2024 of 6.61%, profitability remains a concern, as past years' positive margins have turned negative, and EBITDA margin is negative at -17.16%.

Balance Sheet

The balance sheet of Amerant Bancorp shows a favorable equity position with no reported debt in the most recent TTM, resulting in a strong equity ratio of 9.00%. Return on equity is uncalculated due to negative net income, indicating a lack of profitability. Historically, the debt-to-equity ratio was managed well, but this recent period reflects a complete shift to equity financing.

Cash Flow

Cash flow analysis indicates operational challenges with a significant reduction in operating cash flow to $4.65 million in TTM 2024 from $26.72 million in 2023. The free cash flow growth rate is negative, showing deterioration to -$1.96 million. The free cash flow to net income ratio is unfavorable due to negative net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
305.29M	328.91M	266.67M	205.14M	263.10M
	Gross Profit
305.29M	328.91M	266.67M	205.14M	263.10M
	EBIT
-252.15M	0.00	63.31M	146.63M	-4.33M
	EBITDA
0.00	0.00	84.47M	151.29M	0.00
	Net Income Common Stockholders
-15.75M	32.49M	46.69M	79.21M	-1.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.48B	53.31M	1.31B	1.45B	1.44B
	Total Assets
9.90B	9.72B	9.13B	7.64B	7.77B
	Total Debt
1.00B	921.33M	1.20B	932.65M	1.17B
	Net Debt
-39.20M	625.30M	950.86M	658.44M	958.37M
	Total Liabilities
9.01B	8.98B	8.42B	932.65M	1.17B
	Stockholders Equity
890.47M	736.07M	707.82M	834.48M	783.42M
Cash Flow		Free Cash Flow
82.19M	15.79M	-59.79M	60.85M	51.67M
	Operating Cash Flow
82.19M	26.72M	-49.16M	67.43M	57.25M
	Investing Cash Flow
-576.66M	-606.62M	-1.40B	385.32M	286.34M
	Financing Cash Flow
762.96M	611.17M	1.46B	-392.93M	-250.52M

Amerant Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMTB, the sentiment is Negative. The current price of 18.35 is below the 20-day moving average (MA) of 20.89, below the 50-day MA of 22.16, and below the 200-day MA of 22.08, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 36.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMTB.

Amerant Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	76 Outperform	$5.60B	14.04	10.38%	2.96%	8.83%	3.77%
FNB	74 Outperform	$4.83B	10.60	7.53%	3.58%	15.34%	-3.89%
WBS	72 Outperform	$8.69B	11.60	8.54%	3.15%	5.86%	-10.72%
SBCF	67 Neutral	$2.18B	17.92	5.64%	2.82%	5.40%	16.13%
FHB	66 Neutral	$3.06B	13.51	9.02%	4.59%	3.53%	-2.18%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
AMTB	53 Neutral	$805.06M	―	-1.94%	1.96%	-1.44%	-158.03%

Amerant Bancorp Corporate Events

Amerant Bancorp Adopts New Performance-Based Stock Agreement

On February 11, 2025, Amerant Bancorp’s Compensation and Human Capital Committee adopted a new performance-based restricted stock unit agreement under its Long-Term Incentive Plan. This agreement, starting in February 2025, modifies the performance goals to focus on Relative Adjusted Return on Average Total Common Equity, offering executives performance-based stock units that vest over three years, contingent on the company’s performance compared to a defined peer group.

Amerant Bancorp Unveils Strategic Plans for Growth

On February 12, 2025, Amerant Bancorp will present a slide presentation to investors and analysts, detailing its recent operational updates and strategic plans. The company emphasizes its completed core conversion and sale of its Houston franchise, focusing on organic growth in Florida and accelerating its digital transformation efforts, aiming to solidify its position as a top-quartile performer in the banking industry.

Leadership Transition Announced at Amerant Bancorp

On February 10, 2025, Amerant Bancorp announced that Howard A. Levine, Senior Executive Vice-President and Chief Consumer Banking Officer, will step down from his role effective February 14, 2025. His duties will be temporarily managed by various senior executives as the company finalizes the terms of his separation, highlighting a transition period in their leadership structure.

Amerant Bancorp’s Q4 Recovery and Strategic Focus

Amerant Bancorp reported a net income of $16.9 million in the fourth quarter of 2024, marking a significant recovery from a net loss in the previous quarter. Despite a decline in total assets due to the sale of its Houston franchise, the company saw an increase in net interest income and a reduction in credit loss provisions, positioning itself for asset growth in early 2025. The company’s strategic focus on Florida and ongoing transformation efforts are aimed at enhancing its competitive position.

Amerant Bancorp Expands Board with Two New Appointments

On January 22, 2025, Amerant Bancorp Inc. expanded its Board of Directors from nine to eleven members, appointing Lisa Lutoff-Perlo and Odilon Almeida Júnior. These appointments, recommended by the Corporate Governance, Nominating and Sustainability Committee, are expected to bring significant expertise and strategic vision to guide Amerant towards growth and success. Both appointees have extensive leadership backgrounds in their respective industries, with Lutoff-Perlo having experience in the global hospitality industry and Almeida Júnior in private equity and financial services. Their contributions are anticipated to strengthen Amerant’s positioning in the banking industry.

Amerant Bancorp Sells Loan Portfolio to Optimize Growth

Amerant Bank sold a portfolio of 323 business-purpose, investment property, residential mortgage loans to Temple View Capital Funding LP and TVC Funding VII LLC for approximately $58.9 million, resulting in a $12.6 million loss. This transaction, along with other strategic moves like the sale of its Houston franchise, aims to optimize its balance sheet and prepare for growth, while also addressing asset quality through the reduction of criticized loans.