Stephen Scouten's questions to Amerant Bancorp Inc (AMTB) leadership • Q1 2025
Question
Stephen Scouten of Piper Sandler questioned if the recent increase in credit downgrades was influenced by the new Chief Credit Officer's arrival. He also asked about the frequency of financial updates from customers, the drivers behind the loan growth shortfall versus the mid-quarter update, and how the experience with the mortgage business pivot influences future strategic expansion.
Answer
CEO Gerald Plush attributed the credit rating changes primarily to the timing of receiving updated 2024 year-end financials from clients, which coincided with the new CCO's start, rather than a change in philosophy. On loan growth, he cited a combination of borrower uncertainty, high rates, and a deliberate 'pruning' of non-relationship loans. Regarding strategy, Plush and CFO Sharymar Yepez explained the mortgage pivot reflects a strategic decision to focus capital on core Florida markets for a better return, rather than scaling a national platform, and to maintain mortgage as a complementary product for relationship clients.