Q2 2024 Amerant Bancorp Inc Earnings Call Transcript
Key Points
- Amerant Bancorp Inc (AMTB) reported strong loan growth, with total loans increasing by $316.5 million, driven by organic growth.
- Net interest margin improved to 3.56% in the second quarter, up from 3.51% in the first quarter, due to higher yielding loan production and lower deposit costs.
- Non-interest income increased significantly to $19.4 million, primarily driven by higher income from loan derivatives and the mortgage business.
- The company opened a new banking center in Downtown Miami and hired new market presidents for Palm Beach and Central Florida, indicating ongoing expansion efforts.
- Amerant Bancorp Inc (AMTB) repurchased 200,652 shares for $4.4 million in the second quarter, reflecting a commitment to returning value to shareholders.
- Total deposits decreased by $62.2 million, primarily due to the runoff of higher-cost municipal deposits and reductions in two large corporate deposit relationships.
- The provision for credit losses increased to $19.2 million, up from $12.4 million in the first quarter, driven by downgrades of certain loans to substandard.
- Non-performing loans increased significantly, with the ratio of non-performing loans to total loans rising to 138 basis points from 43 basis points in the previous quarter.
- Non-interest expenses rose to $73.3 million, up from $66.6 million in the first quarter, partly due to non-routine transaction costs related to the sale of the Houston franchise.
- The company's total assets decreased slightly to $9.75 billion from $9.82 billion in the first quarter, indicating a slight contraction in the overall asset base.
Good morning and welcome to the Amerant Bancorp's second quarter 2024 earnings conference call. (operator instructions) As a reminder, this conference is being recorded.
I would now like to turn all over to Laura Rossi, Head of Investor Relations. Thank you. You may begin.
Thank you, Daryl. Good morning, everyone, and thank you for joining us to review Amerant Bancorp's second quarter 2024 results. On today's call are Jerry Plush, our Chairman and CEO, and Sharymar Calderon, our Executive Vice President and CFO.
As we begin, please note that discussions on today's call contain forward-looking statements within the meaning of the Securities Exchange Act. In addition, references will also be made to non-GAAP financial measures. Please refer to the company's earnings release for a statement regarding forward-looking statements as well for information and reconciliation of non-GAAP financial measures to GAAP measures.
I will now turn it over to our Chairman and CEO, Jerry Plush.
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