NYSE$AMTB

Amerant Bancorp Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Amerant's financial performance for Q1 2020 was reported, demonstrating resilience amidst the COVID-19 pandemic.

Amerant Bancorp Inc. reported a net income of $3.4 million for Q1 2020, a significant decrease compared to both Q4 2019 and Q1 2019. However, operating income showed a slight increase from the previous quarter and remained flat year-over-year. The company increased its allowance for loan losses due to the estimated deterioration of its loan portfolio caused by COVID-19.

  • Net income was $3.4 million, down 74.9% from Q4 2019 and 74.1% from Q1 2019, primarily due to increased provision for loan losses.
  • Operating income was $16.7 million, up 12.5% from Q4 2019 and flat compared to Q1 2019.
  • Net interest income (NII) was $49.2 million, down 4.0% from Q4 2019 and 11.2% from Q1 2019, with a net interest margin (NIM) of 2.65%.
  • Noninterest income was $21.9 million, up 37.2% from Q4 2019 and 66.5% from Q1 2019, driven by net gains on the sale of securities.

Headline financials

Total Revenue

$71.1M

Previous: $68.6M+3.7%
EPS (adj)

$0.08

Previous: $0.30-73.3%
Net Interest Margin

2.6%

No prior period
Efficiency Ratio

63.1%

No prior period
Capital Expenditures

-$1.32M

Previous: -$1.95M+32.3%
Free Cash Flow

$2.06M

Previous: $11.1M-81.5%
Net Income

$3.38M

Previous: $13.1M-74.1%
Operating Income

$16.9M

Previous: $33.3M-49.1%
Gross Profit

$49.1M

Previous: $68.6M-28.4%
Cash & Equivalents

$271M

Previous: $89.7M+202.2%
Total Assets

$8.1B

Previous: $7.9B+2.5%
Stock-Based Comp

$392K

Previous: $1.49M-73.7%

Revenue & EPS history

Amerant · Revenue · Quarterly

$71.1M

Q1 2020+3.7%vs Q1 2019
Beat estimate in 6 of 9 quarters(67%)
ActualEstimate

Forward guidance

Amerant anticipates continued pressure on NII and NIM due to the depressed interest rate environment caused by the COVID-19 pandemic and the ongoing runoff of low-cost international deposits. The company is proactively managing deposits, exploring higher-yield investments, and seeking lower-cost funding options.

Tailwinds

  • Proactively repricing deposits to manage costs.
  • Leveraging opportunities for higher-yield investments.
  • Seeking lower-cost wholesale funding.
  • Working diligently to meet the banking needs of domestic and international clients.
  • Modified maturities on $420.0 million fixed-rate FHLB advances, resulting in $2.4 million of cost savings for the remainder of 2020.

Headwinds

  • Interest-earning assets are expected to price lower.
  • Continued runoff of low-cost international deposits.
  • NII and NIM are expected to remain pressured.
  • Economic disruption caused by COVID-19 is expected to impact the Company's credit quality.
  • Uncertain duration and magnitude of the slowdown in U.S. and global economic activity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.6%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+5.6%

Avg return

30 days after

54%

19 / 35 earnings

Positive

+16.5%

Q1 2020

Best reaction

-13.1%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%-4.7%-7.0%
Q4 2025-4.5%-6.0%+1.7%
Q3 2025-3.7%-4.3%+7.5%
Q2 2025-3.1%-1.8%+2.8%
Q1 2025-13.1%-12.4%-12.4%
Q4 2024+3.3%+3.5%-0.2%
Q3 2024+0.1%+6.6%+24.5%
Q2 2024-9.2%-18.2%-17.4%
Q1 2024-2.8%-3.7%-1.8%
Q4 2023+2.2%+0.5%-8.9%
Q3 2023-9.4%-10.2%+11.0%
Q2 2023-2.8%-1.9%-1.5%
Q1 2023-4.6%-5.3%-5.8%
Q4 2022+2.2%-0.3%+6.9%
Q3 2022+6.7%+12.7%+11.2%
Q2 2022-8.5%-8.2%-3.2%
Q1 2022+1.5%-4.4%-1.7%
Q4 2021-0.6%+3.4%-1.9%
Q3 2021-0.4%-0.4%+17.3%
Q2 2021+1.4%+2.9%+11.8%
Q1 2021+1.4%+10.8%+34.6%
Q4 2020+0.1%+6.5%+13.2%
Q3 2020+6.9%+16.8%+64.1%
Q2 2020-9.9%-3.5%-3.4%
Q1 2020+16.5%+6.7%+1.7%
Q4 2019-5.4%-3.6%-6.3%
Q3 2019+0.3%+2.2%+11.6%
Q2 2019-1.6%+3.0%-6.8%
Q1 2018+0.8%-0.8%+3.4%
Q1 2019+7.2%+17.3%+24.2%
Q4 2016+10.9%+14.9%+28.9%
Q4 2018+5.6%+5.3%+18.9%
Q3 2018-11.2%-11.8%-31.4%
Q2 2018+0.3%
Q4 2017+0.3%
Q3 2017
Q2 2017
Q1 2017

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