Amerant Bancorp Q3 net income rises on solid loan growth

Overview

• Florida bank's Q3 net income and EPS rose from prior quarter

• Net interest income grew 9.6% quarter-over-quarter, driven by higher net interest margin

• Company repurchased $2 mln of shares in Q3

Outlook

• Amerant says focus is shifting toward enhancing franchise value and sustainable returns

• Company aims to build a more profitable and resilient franchise going forward

• Company did not provide specific financial guidance for future quarters or full year in the press release

Result Drivers

• NET INTEREST INCOME & EXPENSE CONTROL - Co said improved profitability was driven by stronger net interest income and disciplined expense management

• LOAN GROWTH & ASSET QUALITY - Co cited solid loan growth and reductions in non-performing and classified loans as contributing to results

• NONACCRUAL LOAN REPAYMENTS - Higher NIM partly due to $1.6 mln in interest from repayments of loans previously in nonaccrual status

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Amerant Bancorp Inc. is $31.50, about 8.1% above its October 21 closing price of $29.13

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 22 - Ameris Bancorp Q3 adjusted EPS beats analyst estimates on higher portfolio loans, investment securities

• Oct 20 - Metropolitan Bank Q3 net interest margin rises on higher yields and loan payoffs

• Oct 21 - Logansport Financial Q3 profit rises on stronger net interest income

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)