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Amerant Bancorp Inc. (AMTB)·Q2 2025 Earnings Summary

Executive Summary

  • Amerant delivered improved profitability in Q2 2025: net income rose to $23.0M and diluted EPS to $0.55, driven by higher NII, NIM expansion to 3.81%, and a materially lower provision for credit losses ($6.1M) versus Q1 2025 .
  • Versus S&P Global consensus, the quarter was a clear EPS beat (Primary EPS 0.57 vs 0.394*) and a modest revenue beat (Revenue $104.2M vs $103.5M*). Drivers were interest recoveries, lower time deposit costs, and securities balance growth; normalized NIM would have been ~4 bps lower per CFO commentary .
  • Asset quality improved: NPAs fell 30.5% q/q to $97.9M, NPLs declined to $82.5M, and ACL coverage of NPLs increased to ~105% (from ~80% in Q1), aided by charge-offs of previously-reserved loans and recoveries .
  • Management reiterated an ROA priority with a path to ~1% in 2H 2025, guided Q3 NIM to 3.75%, and expects deposit growth (14–15% annualized by year-end), brokered deposit reductions (≥$100M), and expenses in line with Q2 core levels ($73M); $0.09 dividend was declared .

What Went Well and What Went Wrong

What Went Well

  • NIM expanded to 3.81% (from 3.75% in Q1) and NII increased by $4.6M q/q, supported by interest recoveries, lower average time deposit balances and rates, and securities portfolio growth .
  • Asset quality improved materially: NPAs dropped to $97.9M, NPLs to $82.5M, with ACL/NPL coverage back over 100% and OREO reduced via sales; CEO emphasized proactive credit actions and strengthened risk culture: “further NPL reductions are a top priority… proactively address credit quality is paramount” .
  • Core PPNR rose 17.7% q/q to $37.1M and core efficiency ratio improved to 66.35%; management also repurchased 275,666 shares at a $18.14 average price and maintained a $0.09 dividend .

What Went Wrong

  • Noninterest expense of $74.4M exceeded prior Q2 guidance of $71.5M (variance driven by $1.2M non-routine items and higher $1.1M loan-level derivative expense) .
  • Classified and special mention loans increased (special mention +$33M, classified +$9.3M), reflecting certain CRE loans missing milestones and downgrades based on FY24/1Q25 borrower financials—even as NPLs fell .
  • Gross charge-offs rose to $18.6M (three commercial loans totaling $16M, $12M of which were previously reserved), with net charge-offs annualized at 0.86% vs 0.22% in Q1; management highlighted this was largely anticipated via specific reserves .

Financial Results

Income Statement and Profitability (oldest → newest)

MetricQ2 2024Q1 2025Q2 2025
Net Interest Income ($USD Millions)$79.355 $85.904 $90.479
Noninterest Income ($USD Millions)$19.420 $19.525 $19.778
Provision for Credit Losses ($USD Millions)$19.150 $18.446 $6.060
Noninterest Expense ($USD Millions)$73.302 $71.554 $74.400
Net Income ($USD Millions)$4.963 $11.958 $23.002
Diluted EPS ($USD)$0.15 $0.28 $0.55
NIM (%)3.56% 3.75% 3.81%
ROA (%)0.21% 0.48% 0.90%
ROE (%)2.68% 5.32% 10.06%
Efficiency Ratio (%)74.21% 67.87% 67.48%

“Total Revenue” (NII before provision + Noninterest Income) per Company Definition

MetricQ2 2024Q1 2025Q2 2025
Total Revenue ($USD Millions)$98.775 $105.429 $110.257

Balance Sheet and Credit KPIs (oldest → newest)

MetricQ2 2024Q1 2025Q2 2025
Total Assets ($USD Millions)$9,747.738 $10,169.688 $10,334.678
Total Deposits ($USD Millions)$7,816.011 $8,154.978 $8,306.544
Core Deposits ($USD Millions)$5,505.349 $5,993.055 $6,143.625
Total Gross Loans ($USD Millions)$7,322.911 $7,219.162 $7,189.196
Investment Securities ($USD Millions)$1,547.864 $1,761.678 $1,970.888
Loans/Deposits (%)93.69% 88.52% 86.55%
Cost of Total Deposits (%)2.98% 2.60% 2.53%
NPAs ($USD Millions)$121.133 $140.760 $97.874
NPLs/Total Loans (%)1.38% 1.71% 1.15%
ACL ($USD Millions)$94.400 $98.266 $86.519
ACL/Total NPLs (%)93.51% 79.75% 104.89%
Net Charge-offs / Avg Loans (%)1.13% 0.22% 0.86%
AUM & Custody ($USD Millions)$2,451.854 $2,932.602 $3,065.020

Actual vs Consensus (Q2 2025)

MetricConsensusActual (S&P Global)Reported (Company)
Primary EPS ($USD)0.394*0.57*$0.55
Revenue ($USD Millions)103.508*104.197*$110.257

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Noninterest Expense ($USD Millions)Q2 2025 → Actual$71.5 guided $74.4 actual Miss vs guide
Core Noninterest Expense ($USD Millions)Q3 2025—~$73 (in line with Q2 core) Raised vs Q2 guide
NIM (%)Q3 2025—~3.75% (normalized) New
Noninterest Income ($USD Millions)Q3 / Q4 2025—~$17.5 (Q3), ~$18.5 (Q4) New
Deposits growthFY25 (annualized)—~14–15% annualized by YE25 New
Brokered depositsQ3 2025—Reduce ≥$100M; replace with FHLB/organic New
Loan growthFY25 (annualized)—~5% annualized by YE25 New
Investment securitiesQ3 2025—Increase similar to Q2 New
Efficiency ratioH2 2025—Mid-60s New
ROA targetH2 2025—~1% (macro-dependent) New
Dividend per shareOngoing$0.09 $0.09 declared (Aug 29 pay date) Maintained

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
Asset qualityInvestment portfolio repositioning losses (3Q/4Q context); elevated NPAs Classified loans rose; NPLs increased to $123.2M NPAs down to $97.9M; NPLs down to $82.5M; ACL/NPL >100% Improving
Mortgage business—Scaling back national origination to Florida focus Downsizing progressing; FTE target <20; integration to core platform Streamlining
Loan growth & syndication—Loans flat q/q amid payoffs/paydowns Building pipeline; adding Head of Loan Syndications; prudent participation in larger credits Rebuilding
Securities portfolio & funding—Plan to supplement loan originations with securities Securities up $209M; trading MBS initiated; brokered deposits targeted for reduction Tactical
Expansion & talent—Selective hiring in risk & BD; new centers opened Miami Beach/Tampa openings in 2H; St. Pete site; continued selective hires Growth in FL
Efficiency/technology——Exploring AI to improve efficiency; mid-60s efficiency guided Operational focus
Rate sensitivity/NIM—NIM stable at 3.75% Normalized NIM ~3.75%; rate-cut impact ~$1.4–1.5M NII per quarter Managed

Management Commentary

  • CEO: “We are pleased to be reporting improved results this quarter, which were driven by higher… pre-provision net revenue, along with a lower provision for credit losses… asset quality… will continue to be a top priority” .
  • CFO: “Our NIM was higher than projected at 3.81% due to recovery of interest on commercial loans… lower cost of time deposits… and lower costs on our notes as these were fully repaid in April 2025” .
  • CEO on capital: “We expect to continue to prudently repurchase shares… balancing growth objectives with buybacks and dividends” .
  • CFO on outlook: “We project our net interest margin to be approximately 3.75%… non-interest income at $17.5M in 3Q and $18.5M in 4Q… expenses in line with Q2 core non-interest expenses” .

Q&A Highlights

  • Loan growth trajectory: Management expects a return to double-digit loan growth longer term (especially into 2026) while maintaining asset quality focus and prudent selectivity .
  • Allowance framework: CEO indicated thinking around $120–$125M ACL is reasonable, contingent on loan mix and growth; provision will tick up with loan funding .
  • NIM normalization: CFO quantified ~$1.2–$1.3M of Q2 interest recoveries; normalized Q2 NIM ~4 bps lower, with Q3 guided at ~3.75% .
  • Rate sensitivity: Modeling one cut in September and one in December; a full-quarter cut reduces NII ~$1.4–$1.5M .
  • Syndication strategy: Targeted participation in larger credits to manage concentration while expanding relationships; illustrative $50M deal where Amerant would hold ~$25M .
  • M&A posture: Organic growth remains top priority; will evaluate M&A optionality if/when currency improves, but not a near-term focus .

Estimates Context

  • EPS beat: Primary EPS (S&P Global) 0.57 vs consensus 0.394*; company-reported diluted EPS $0.55—beat driven by higher NIM/NII, and lower provision versus Q1 .
  • Revenue: S&P Global “Revenue” $104.2M vs consensus $103.5M* (company-defined “total revenue” = NII before provision + noninterest income was $110.3M) .
  • Implications: Consensus may need upward adjustment for a normalized NIM near 3.75%, improving asset quality, and stable core expenses around ~$73M (offset by lower recoveries and potential rate cuts in 4Q) .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Strong quarter with quality of earnings: higher NII/NIM and sharply lower provisioning led to EPS upside; expect normalized NIM ~3.75% near-term .
  • Asset quality inflection: NPL/NPAs down materially; ACL/NPL >100% following specific charge-offs and recoveries—confidence in credit process is improving .
  • Funding mix trending better: core deposits grew; brokered deposits targeted for further reduction; loans-to-deposits moving toward optimal ~95% longer term .
  • Operating efficiency on track: core efficiency in mid-60s supported by Florida expansion and selective hiring; AI adoption targeted to enhance productivity .
  • Securities as a tactical bridge: temporary securities build offsets timing of loan fundings; expect rotation toward loans as pipeline converts .
  • Capital returns: $5M buyback and $0.09 dividend maintained; continued prudence balancing growth and returns .
  • Near-term trading lens: watch for NPL resolution, deposit growth momentum, Q3 NIM delivery (~3.75%), and any rate-cut impacts to NII; narrative remains constructive with improving ROA trajectory .

Additional Relevant Press Releases (Q2 2025)

  • Dividend declaration: $0.09 per share payable Aug 29, 2025; record date Aug 15, 2025 .
  • Earnings release: full Q2 2025 results and non-GAAP reconciliations (EX-99.1 and exhibits) .