Today, Amerant Bancorp Inc. (NYSE:AMTB), a Florida-based national commercial bank with a market capitalization of $1.06 billion and current stock price of $25.08, announced the extension of its current share repurchase program. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value metrics. The board of directors has approved the continuation of the program, initially set to expire on December 31, 2024, until December 31, 2025.
The program, which was previously extended on December 6, 2023, authorizes the repurchase of up to $20 million of the company's Class A common stock. As of now, Amerant Bancorp has approximately $12.4 million remaining available for repurchase under this program. The stock has shown strong momentum with a 19.23% return over the past six months. Get deeper insights into Amerant Bancorp's financial health and access exclusive ProTips with an InvestingPro subscription.
The company may repurchase shares through various means, including open market purchases, block purchases, privately-negotiated transactions, or other methods that are in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. The actual repurchasing of shares will depend on a variety of factors, including market conditions, regulatory requirements, and other corporate liquidity needs and priorities.
In other recent news, Amerant Bancorp reported a Q3 loss of $48.2 million, primarily due to strategic repositioning of the company's investment portfolio and real estate losses. Despite this, the company's core pre-provision net revenue remained robust at $31.3 million, and total assets increased to $10.38 billion. In addition, Amerant Bancorp successfully completed a public offering of 8.7 million shares, raising $165 million.
Piper Sandler, a prominent financial firm, recently maintained its Overweight rating on Amerant Bancorp, indicating a positive view on its future performance. The firm adjusted its outlook, raising the price target to $29.00 from the previous $26.50, based on updated earnings estimates for the years 2024 to 2026.
The new estimates reflect an optimistic outlook due to several factors, including anticipated double-digit loan growth, a higher net interest margin trajectory, and reduced credit costs in the second half of 2025.
Amerant Bancorp is actively focusing on growth and community support following recent hurricanes, and is preparing for the opening of new banking centers in Florida. The company aims to enhance liquidity and fee income through asset management growth, targeting a 60% efficiency ratio, 1% return on assets, and 12% return on equity by the second half of 2025.
Furthermore, the company is focusing on alternative funding sources to positively impact the cost of funds into 2025, and expects a normalized charge-off rate of 30 to 40 basis points by 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.