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CORAL GABLES, Fla. - Amerant Bancorp Inc. (NYSE: NYSE:AMTB), a Florida-based bank holding company, has initiated an underwritten public offering of its Class A voting common stock. The company has also proposed a 30-day option for underwriters to purchase additional shares.
Joint book-running managers for this offering are Stephens Inc. and Piper Sandler & Co. Amerant Bancorp aims to allocate the net proceeds towards general corporate purposes to bolster organic growth. This may include enhancing working capital, investing in its subsidiary Amerant Bank, N.A., addressing non-performing loans, and exploring potential balance sheet optimization strategies.
The offering is accessible via a prospectus supplement and an accompanying base prospectus. Amerant has already filed a registration statement on Form S-3, along with a preliminary prospectus supplement, with the U.S. Securities and Exchange Commission (SEC) concerning the shares of Class A voting common stock involved in this offering. A final prospectus supplement related to the offering will also be filed.
Investors are advised to read these documents, which are available on the SEC’s website, for a more comprehensive understanding of Amerant and the offering. Copies of the base prospectus and the preliminary prospectus supplement can be requested from the managing book-runners.
The press release states that this announcement is purely informational and not an offer to sell or a solicitation to buy the securities. Sales of the securities will not take place in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such jurisdiction. The securities offered have not received approval or disapproval from any regulatory authority, nor has any authority commented on the accuracy or adequacy of the prospectus supplement, the shelf registration statement, or the related prospectus.
Amerant Bancorp, headquartered in Coral Gables since 1979, operates primarily through Amerant Bank, N.A., as well as Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The company offers deposit, credit, and wealth management services to individuals and businesses in the U.S. and is the largest community bank based in Florida. It has a network of 25 banking centers across South Florida, Tampa, FL, and the Houston, Texas area.
The information in this article is based on a press release statement from Amerant Bancorp Inc.
In other recent news, MidFirst Bank is set to acquire Amerant Bank's Houston, Texas banking locations, a move that has received all necessary regulatory approvals. The acquisition, scheduled for completion in November 2024, will incorporate six Amerant Bank branches into MidFirst's network. This development is part of MidFirst's ongoing expansion efforts in Texas.
In the financial performance sector, Amerant Bancorp reported its second quarter 2024 earnings, indicating a mix of growth and challenges. The bank reported an increase in net interest income and margin, along with a 34% rise in non-interest income. Despite a slight decrease in total deposits and an increase in non-performing loans, the bank maintains a positive outlook.
Following the acquisition's finalization, Amerant Bank's Houston employees are set to become part of MidFirst, and the Amerant locations will be rebranded as MidFirst Bank branches. Both MidFirst and Amerant will be communicating with customers in the upcoming months to guide them through the transition process. These are the recent developments for both MidFirst Bank and Amerant Bancorp.
InvestingPro Insights
Amerant Bancorp Inc. (NYSE: AMTB), in its recent move to strengthen its capital through a public offering, presents a mixed financial outlook according to InvestingPro metrics and insights. With a market capitalization of $698.51 million, the company is trading at a high earnings multiple, with a P/E ratio of 34.44. This indicates that investors are paying a premium for its earnings compared to the broader market. Furthermore, the P/E ratio has been adjusted to 72.51 for the last twelve months as of Q2 2024, which could suggest an even higher valuation in the eyes of investors.
InvestingPro Tips highlight that while analysts predict Amerant Bancorp will be profitable this year, they have also revised their earnings downwards for the upcoming period. This could imply a cautious outlook on the bank's near-term financial performance. Additionally, the company suffers from weak gross profit margins, which could be a concern for investors looking for robust profitability.
Despite these challenges, Amerant Bancorp has been profitable over the last twelve months, and its revenue growth remains positive at 8.52% for the same period. The company's recent offering could potentially be used to address these financial concerns and capitalize on growth opportunities.
For investors seeking more detailed analysis and additional insights, InvestingPro offers a total of 5 InvestingPro Tips for Amerant Bancorp, which can be accessed at https://www.investing.com/pro/AMTB. These additional tips may provide a deeper understanding of the bank's financial health and future prospects.
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