CORAL GABLES, Fla. - Amerant Bancorp Inc. (NYSE: NYSE:AMTB), the Florida-based bank holding company, has entered into a definitive agreement to sell its Houston banking operations to MidFirst Bank. The transaction involves the transfer of approximately $576 million in deposits and $529 million in loans from Amerant Bank's six Houston branches.
Jerry Plush, Chairman and CEO of Amerant, explained the decision as a strategic move to concentrate on growth opportunities in Florida, including South Florida and Tampa. The sale is aligned with the company's goal to be the leading bank in its primary markets.
The completion of the sale is subject to standard closing conditions and regulatory approvals, with an expected finalization in the second half of 2024. Both financial and legal advisers were involved in the transaction, with Stephens Inc. and Squire Patton Boggs (US) LLP assisting Amerant, and Raymond James & Associates, Inc. and Covington & Burling LLP advising MidFirst Bank.
Today, Amerant's executives will hold a conference call to discuss the details of the transaction. The call will be accessible via webcast through the investor relations section of Amerant's website, with a replay available for about 30 days post-event.
Amerant Bancorp, established in 1979, has been serving as a community bank for over 40 years, primarily operating in Florida and Texas. Following the sale, the company will focus on its 17 South Florida and 1 Tampa branches.
The information presented in this article is based on a press release statement. It should be noted that forward-looking statements in the press release involve risks and uncertainties, and actual results may differ materially. Amerant Bancorp's future plans and expectations are detailed in their filings with the U.S. Securities and Exchange Commission, which are publicly available.
InvestingPro Insights
Amerant Bancorp Inc. (NYSE: AMTB) is currently navigating through a significant strategic shift with the sale of its Houston banking operations. As the company refocuses on its core markets in Florida, it's important for investors to consider the latest financial metrics and analyst insights.
The company's market capitalization stands at $700.4 million, reflecting the size and investor valuation of the bank post-announcement. An aspect that investors may find noteworthy is the company's Price to Earnings (P/E) ratio.
The adjusted P/E ratio for the last twelve months as of Q4 2023 is 124.88, which is substantially higher than the industry average, suggesting that investors have high expectations for future earnings growth. This aligns with the InvestingPro Tips that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months.
Despite a modest revenue growth of 1.06% for the last twelve months as of Q4 2023, the quarterly revenue growth rate was more robust at 5.15%. This indicates a potential uptrend in the company's earnings capability, which could be a result of the strategic refocusing. Moreover, the Price to Book (P/B) ratio of 0.95 suggests that the stock is currently trading at a fair value relative to the company's book value.
For investors looking for more in-depth analysis, there are additional InvestingPro Tips available on the company, which can provide further guidance on investment decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro for a deeper dive into Amerant Bancorp's financial health and future prospects.
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