Amerant Bancorp Inc. Announces Closing of $165 Million Offering of Common Stock

Rhea-AI Summary

Amerant Bancorp Inc. (NYSE: AMTB) has successfully closed its public offering of 8,684,210 shares of Class A voting common stock at $19.00 per share, raising approximately $165 million in gross proceeds. The offering included 784,210 additional shares due to the full exercise of the underwriters' option. Net proceeds totaled approximately $156.7 million after underwriting discounts.

The company plans to use the funds for general corporate purposes, including supporting organic growth, working capital, resolving non-performing loans, investments in its banking subsidiary, and potential balance sheet optimization strategies. Jerry Plush, Chairman and CEO, stated that this capital raise completes Amerant's multi-year transformation and strengthens its ability to pursue continued organic growth.

Positive

• Successful public offering raising $165 million in gross proceeds
• Net proceeds of approximately $156.7 million after underwriting discounts
• Funds to be used for supporting organic growth and various corporate purposes
• Strengthens ability to pursue continued growth and achieve top-quartile performance

Negative

• Potential dilution of existing shareholders due to new share issuance

Insights

Financial Analyst

Amerant Bancorp's successful $165 million common stock offering is a significant capital raise that strengthens the company's financial position. The $156.7 million in net proceeds provides substantial liquidity for various strategic initiatives, including organic growth, non-performing loan resolution and potential balance sheet optimization.

The offering price of $19.00 per share and full exercise of the underwriters' option indicate strong investor demand. This capital infusion enhances Amerant's ability to pursue growth opportunities in its key markets of South Florida, Tampa and Houston.

Chairman and CEO Jerry Plush's statement about completing the company's multi-year transformation suggests that Amerant is now well-positioned to focus on achieving top-quartile performance. The successful offering may lead to improved financial metrics and potentially higher valuations in the medium to long term.

Investors should monitor how effectively Amerant deploys this new capital to drive growth and improve operational efficiency. The company's ability to translate this capital raise into tangible results will be important for future stock performance.

Market Research Analyst

Amerant Bancorp's $165 million stock offering is noteworthy in the context of its $685 million market cap, representing a significant 24% increase in equity. This substantial capital raise could potentially reshape the company's growth trajectory and market position.

The successful offering amid challenging market conditions for regional banks demonstrates investor confidence in Amerant's strategy and management. It also provides a competitive advantage in terms of growth capital compared to peers who may be more constrained.

Key areas to watch include:

• Organic growth acceleration in core markets
• Potential market share gains from larger competitors
• Improved ability to navigate regulatory requirements
• Enhanced capacity for technological investments

The stock's performance post-offering will be important to monitor, as it will reflect the market's assessment of the company's ability to generate returns on this new capital. Long-term success will depend on Amerant's execution in deploying funds effectively to drive shareholder value.

CORAL GABLES, Fla.--(BUSINESS WIRE)-- Amerant Bancorp Inc. (NYSE: AMTB) (the “Company”) today announced the closing of its public offering of 8,684,210 shares of its Class A voting common stock (the “common stock”), at a price to the public of $19.00 per share, which included 784,210 shares issued upon the exercise in full by the underwriters of their option to purchase additional shares of common stock. The total gross proceeds from the offering were approximately $165 million.

Stephens Inc. and Piper Sandler & Co. acted as joint book-running managers for the offering. Keefe, Bruyette & Woods, A Stifel Company, and Raymond James & Associates, Inc. acted as co-managers.

The Company received net proceeds from the offering of approximately $156.7 million, after deducting underwriting discounts and before deducting transaction expenses. The Company intends to use the net proceeds of the offering for general corporate purposes to support its continued organic growth, which may include, among other things, working capital, resolution of non-performing loans, investments in its banking subsidiary, and potential balance sheet optimization strategies.

“This capital raise and follow-on investment portfolio repositioning completes the multi-year transformation we have undertaken here at Amerant,” stated Jerry Plush, Chairman and CEO. “The success of this transaction strengthens our ability to pursue continued organic growth and is a testament to investor confidence in our vision and the Company’s future. It will enable us to continue to invest in critical areas that support our achieving top-quartile performance. Our commitment remains unwavering: delivering exceptional products and service to our customers and increasing value to our shareholders by being the bank of choice in the markets we serve.”

The offering to which this communication relates was made by means of a prospectus supplement and accompanying base prospectus. The Company has filed a registration statement on Form S-3 (File No. 333-272886), a preliminary prospectus supplement and a final prospectus supplement to the base prospectus contained in the registration statement with the U.S. Securities and Exchange Commission (the “SEC”) for the shares of common stock to which this communication relates. You may obtain these documents for free by visiting the SEC’s website at www.sec.gov. Alternatively, you may request copies of the base prospectus and final prospectus supplement by contacting Stephens Inc. by telephone at (800) 643-9691 or by email at prospectus@stephens.com, and by contacting Piper Sandler & Co. by telephone at (800) 747-3924 or by email at prospectus@psc.com.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities to which this communication relates have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement or the shelf registration statement or prospectus relating thereto.

About Amerant Bancorp Inc.

Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S. with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the largest community bank headquartered in Florida. The Bank operates 25 banking centers – 18 in South Florida, 1 in Tampa, FL and 6 in the Houston, Texas area. For more information, visit investor.amerantbank.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. All statements other than statements of historical fact are statements that could be forward-looking statements. Forward-looking statements include statements relating to the use of proceeds from the offering, including any potential balance sheet optimization strategies and resolution of non-performing loans. You can identify these forward-looking statements through the use of words such as “may,” “balance sheet optimization efforts,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “point to,” “project,” “could,” “intend,” “anticipate,” and other similar words and expressions of the future.

Forward-looking statements involve risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk Factors” in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2023 filed on March 7, 2024, the Company’s quarterly reports on Form 10-Q (including our quarterly report on Form 10-Q filed on August 2, 2024), in the Company’s other filings with the SEC, in the prospectus supplement and accompanying base prospectus relating to the offering, which are available at the SEC’s website www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240927223155/en/

Investors

Laura Rossi

InvestorRelations@amerantbank.com

(305) 460-8728

Media

Alexis Dominguez

MediaRelations@amerantbank.com

(305) 441-8412

Source: Amerant Bancorp Inc.

FAQ

How much did Amerant Bancorp (AMTB) raise in its recent public offering?

Amerant Bancorp (AMTB) raised approximately $165 million in gross proceeds from its recent public offering of common stock.

What was the price per share for Amerant Bancorp's (AMTB) public offering?

The public offering price for Amerant Bancorp's (AMTB) common stock was $19.00 per share.

How many shares did Amerant Bancorp (AMTB) issue in its recent offering?

Amerant Bancorp (AMTB) issued 8,684,210 shares of its Class A voting common stock in the recent offering, including 784,210 additional shares from the underwriters' option exercise.

What will Amerant Bancorp (AMTB) use the proceeds from the offering for?

Amerant Bancorp (AMTB) intends to use the net proceeds for general corporate purposes, including supporting organic growth, working capital, resolving non-performing loans, investments in its banking subsidiary, and potential balance sheet optimization strategies.