Specifically, the company was originally set to sell 11.0 mln shares within a range of $16.50-$18.50. However, on December 11, the company cut the deal size to 6.1 mln shares, while reducing the expected price range to $13.50-$14.50. Then, last week, AMTB again lowered the expected price, this time to $13.
Finally, on Wednesday AMTB's 6.3 mln share IPO priced, at $13 as expected, generating total gross proceeds of $81.9 mln. The lead underwriter on the deal were Raymond James, Keefe, Bruyette and Woods, and Stephens.
AMTB is a bank holding company headquartered in Coral Gables, Florida. It currently operates 23 banking centers where it offers personal and commercial banking services. The Bank’s primary markets are South Florida, where it operates 15 banking centers in the Miami-Dade, Broward and Palm Beach counties; the greater Houston area, where it has eight banking centers that serve nearby areas of Harris, Montgomery, Fort Bend and Waller counties; and the New York City area, where it has a loan production office in Midtown Manhattan.
As of September 30, 2018, it had $8.4 bln in assets, $6.2 bln in loans, $6.2 bln in deposits, $727.7 mln of shareholders’ equity and $1.7 bln in assets under management and custody. The bank provides individuals and businesses a comprehensive array of deposit, credit, investment, wealth management, retail banking, and fiduciary services. Its services are offered through Amerant Bank, which is also headquartered in Coral Gables, Florida, and its subsidiaries.
From 1987 through December 31, 2017, it was a wholly-owned subsidiary of Mercantil Servicios Financieros (MSF). On March 15, 2018, MSF transferred 100% of AMTB's outstanding Class A common stock and Class B common stock to a newly created Florida common law, non-discretionary grantor trust. On August 10, 2018, AMTB completed its spin-off from MSF through the distribution of 19,814,992 shares of Class A common stock and 14,218,596 shares of Class B common stock.
AMTB says that the spin-off has sharpened its focus on its strategy to increase its ROA, ROE, through margin expansion, shift in loan mix, efficiencies, appropriate cross-selling of services, increased fee income, and growth in its various businesses.
Now, it is re-branding the company as Amerant. It believes the new name and logo will identify it as separate and distinct from MSF and promote its strategic focus as a community bank with its own identity. All the entities in its organization are adopting the new name and logo, and the company will formally change its name, subject to shareholder approval, following its 2019 annual shareholders’ meeting.
Taking a look at the financials, net interest income for the nine months ended September 30, 2018, increased by 4.8% to $162.3 mln. The increase in net interest income was due primarily to a 48 basis point improvement in the average yield on interest-earning assets, partially offset by a 0.88% decrease in the average balance of interest-earning assets.
Net income for the period was $31.4 mln and $0.74 basic and diluted earnings per share, declining by $2.8 mln, or 8.28%, from net income of $34.2 mln and $0.81 basic and diluted earnings per share reported in the same period of 2017. The decrease is mainly attributable to: 1) Lower non-interest income as a result of a one-time net gain of $10.5 mln on the sale of the Bank’s New York building in the same quarter a year ago 2) Provisions for the costs associated with the Spin-off totaling $6.3 mln in the nine months ended September 30, 2018 3) Higher salary and employee benefit costs and telecommunications and data processing expenses 4) Lower income from brokerage, advisory and fiduciary activities.