Amerant Bancorp (AMTB) investor relations material

Executive summary

• Net income for Q3 2025 was $14.8 million ($0.35 per diluted share), down from $23.0 million in the prior quarter, reflecting higher provision for credit losses and a focus on asset quality over growth.

• Total assets reached $10.4 billion, up 0.7% sequentially and 5.1% from year-end 2024; total deposits were $8.3 billion, with core deposits up 1.0%.

• The company continued its strategic focus on Florida, downsizing its mortgage business, opening new banking centers, and expanding international banking, with 50% of new accounts in 2025 from Latin America.

• Management anticipates a return to loan growth in Q4, plans to resume share buybacks, and is implementing new expense reductions.

• Asset quality took priority over loan growth, with a proactive approach to addressing increased nonperforming asset levels and implementing a plan for reduction in coming quarters.

Financial highlights

• Net interest income was $94.2 million, up 4.1% sequentially and 16.2% year-over-year; net interest margin improved to 3.92%.

• Noninterest income was $17.3 million, down 12.6% sequentially but up $65.0 million year-over-year, mainly due to securities gains and higher brokerage/advisory fees.

• Noninterest expense rose to $77.8 million, with core noninterest expense at $75.9 million; increases were driven by legal and consulting costs.

• Provision for credit losses was $14.6 million, up 140.9% sequentially but down 23.2% year-over-year.

• Core PPNR was $35.8 million, down 3.7% from the prior quarter.

Outlook and guidance

• Loan growth for Q4 expected to be $125–175 million (approx. 2.5% increase), with a $350 million pipeline and $150 million from syndications.

• Deposit growth expected to align with loan growth; further reduction in brokered and high-cost deposits anticipated.

• Net interest margin projected at ~3.75% for Q4; noninterest income expected between $17.5–18 million; expenses to decrease to $74–75 million.

• Efficiency ratio to remain in the high 60s; core ROA projected in the mid-80s to low-90s, with potential to approach 1% if recoveries materialize.

• Management anticipates completing the wind-down or sale of its mortgage subsidiary in the first half of 2026 and targets $2–3 million in quarterly expense savings in 2026.