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Amerant Bancorp Inc. (AMTB)·Q3 2025 Earnings Summary

Executive Summary

  • Amerant’s Q3 2025 delivered solid NIM expansion and higher NII, but headline EPS fell on a sharp increase in provision for credit losses tied to NPL downgrades and proactive portfolio reviews; diluted EPS was $0.35 and core diluted EPS was $0.39 .
  • Net interest margin rose to 3.92% (from 3.81% in Q2) on lower deposit costs and interest recoveries; efficiency ratio worsened to 69.84% as expenses stepped up due to asset-quality resolution, legal/trust, and AI governance costs .
  • Asset quality was the central pressure: NPAs increased to $139.9M (1.34% of assets), NPLs to $124.3M, driving provision to $14.6M and an ACL ratio of 1.37%; management detailed post-quarter recoveries and a Q4 plan to reduce NPAs .
  • Guidance: Q4 NIM ~3.75%, core expenses $74–$75M, noninterest income $17.5–$18.0M, core ROA mid‑80s to low‑90s bps with potential upside from recoveries; net loan growth guided to $125–$175M and intent to utilize remaining $13M buyback authorization .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin outperformed at 3.92% on higher average loan/securities yields and lower deposit costs; NII increased to $94.2M (+$3.7M q/q) .
  • Core deposit mix improved (core deposits +$59.4M q/q) while brokered deposits were reduced by $93.7M; L/D ratio improved to 83.6% .
  • Management reaffirmed strong capital (CET1 11.54%) and announced continued buybacks post-blackout: “We intend to utilize the $13,000,000 remaining in our current authorized buyback program this quarter given where our stock is currently trading” .

What Went Wrong

  • Provision for credit losses rose to $14.6M (from $6.1M in Q2) on NPL downgrades after extensive reviews; “the increase in non performing asset levels must be immediately addressed” .
  • NPAs increased to $139.9M (1.34% of assets) and NPLs to $124.3M; nine commercial loans ($38.9M) and three CRE loans ($31.0M) were downgraded, with additional smaller loans adding $7.2M .
  • Expenses overshot prior guidance as professional fees (+$2.4M) and earnings credits (+$1.4M) raised noninterest expense to $77.8M; nonroutine items totaled ~$2.0M (loss on one substandard loan sale, OREO valuation, mortgage downsizing) .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Diluted EPS ($)-$1.43 $0.28 $0.55 $0.35
Core Diluted EPS ($)$0.27 $0.24 $0.57 $0.39
Net Interest Income ($M)$81.0 $85.9 $90.5 $94.2
Noninterest Income ($M)-$47.7 $19.5 $19.8 $17.3
Provision for Credit Losses ($M)$19.0 $18.4 $6.1 $14.6
Efficiency Ratio (%)228.74 67.87 67.48 69.84
NIM (%)3.49 3.75 3.81 3.92
ROA (%)-1.92 0.48 0.90 0.57
ROE (%)-24.98 5.32 10.06 6.21
Balance/Asset Quality KPIQ3 2024Q1 2025Q2 2025Q3 2025
Total Assets ($M)$10,353 $10,170 $10,335 $10,410
Total Loans ($M)$7,562 $7,219 $7,189 $6,942
Total Deposits ($M)$8,111 $8,155 $8,307 $8,301
Loan-to-Deposit Ratio (%)93.23 88.52 86.55 83.63
NPLs ($M)$114.9 $123.2 $82.5 $124.3
NPAs ($M)$129.4 $140.8 $97.9 $139.9
ACL ($M)$79.9 $98.3 $86.5 $94.9
ACL / Loans (%)1.15 1.37 1.20 1.37
CET1 (%)10.65 11.11 11.25 11.54

Estimates vs Actuals (S&P Global)

MetricConsensus (Q3 2025)Actual (Q3 2025)
Primary EPS Consensus Mean ($)0.53*0.39*
Revenue Consensus Mean ($)110.205M*96.843M*
Primary EPS – # of Estimates4*—
Revenue – # of Estimates4*—

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest MarginQ3 2025~3.75% (from Q2 call) Actual: 3.92% Beat vs guide
Net Interest MarginQ4 2025—~3.75% New guide
Noninterest Income ($M)Q3 2025~$17.5 Actual: $17.3 Slightly below
Noninterest Income ($M)Q4 2025—$17.5–$18.0 New guide
Core Noninterest Expense ($M)Q3 2025~$73 (core) Core: $75.9 Higher than guide
Core Noninterest Expense ($M)Q4 2025—$74–$75 New guide
Core ROA (%)H2 2025Target ~1% Q4 guided mid‑80s to low‑90s bps; possibly ~1% with recoveries Moderated
Net Loan Growth ($M)Q4 2025—$125–$175 net; pipeline ~$350 organic + ~$150 syndications New guide
Deposits GrowthQ4 2025—“in line with loan growth” New guide
Share BuybacksQ4 2025$25M program, $10M used in Q3 Intend to utilize remaining $13M in Q4 Incremental
DividendQ3/Q4 2025Declared $0.09 (paid Aug 29) Declared $0.09, payable Nov 28 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Asset quality focus/NPL resolutionProactive downgrades; NPL roll-forward increases; target ~30–35bps charge-offs Highest volume of reviews (> $3.5B loans); downgrades to NPL across CRE and commercial; weekly special assets working group; early Q4 recoveries Intensified remediation
Expense disciplineMortgage downsizing to cut ~$2.5M/quarter from H2’25; efficiency mid-60s guided Q3 expense spike (legal/trust, AI governance); launched $2–$3M/quarter baseline savings plan for 2026 Near-term elevated, medium-term reductions
Deposit growth & mixStrong core deposit growth; treasury build-out; beta mgmt Core deposits +$59.4M q/q; brokered deposit reduction; cost of deposits 2.41% Positive mix
Loan growth & syndicationsPipeline building; launch head of syndications Q3 loans down 3.4% QoQ on payoffs; Q4 pipeline $350M organic + $150M syndications; net +$125–$175M Rebound planned
AI/technologyNIM/efficiency orientation; treasury/digital onboarding AI governance build-out cited as expense driver; ongoing enhancements Building governance
Capital & buybacksBuybacks under 10b5‑1; dividend maintained CET1 11.54%; repurchased 487,657 shares ($10.0M); intend to use remaining $13M in Q4 Shareholder returns steady

Management Commentary

  • “The increase in non performing asset levels must be immediately addressed… our primary focus this quarter was on asset quality over loan growth.” — CEO Jerry Plush .
  • “NIM was higher than projected at 3.92% due to higher average rates for both loans and securities, lower average rates on deposits… and collections on some special assets.” — CFO Sharymar Calderón .
  • “We launched an expense reduction initiative with an initial goal of achieving a baseline of $2–$3 million in savings per quarter in 2026… you’ll begin to see the start of these reductions in the fourth quarter.” — CEO Jerry Plush .
  • “Provision for credit losses was $14.6 million… comprised of $7.8 million in additional specific reserves, $8.9 million to cover charge-offs… $3.6 million due to credit quality and macroeconomic factors.” — CFO Sharymar Calderón .
  • “We intend to utilize the $13,000,000 remaining in our current authorized buyback program this quarter.” — CEO Jerry Plush .

Q&A Highlights

  • Asset quality inflection: Management sees Q3 as peak review quarter (> $3.5B assessed) and is reallocating personnel plus third-party resources to accelerate resolutions; timing of resolutions remains the challenge .
  • NIM trajectory: Q4 guide to ~3.75% reflects less asset repricing benefit after rate cuts and normalization of special asset collections; deposit repricing and new production yields temper upside .
  • Loan growth sustainability: Target net loan growth $125–$175M in Q4 via selective C&I and syndications; aim to keep hold sizes sub‑$30M to manage concentration risk .
  • Charge-offs outlook: Expect ~30–35bps charge-offs, largely in indirect consumer/small commercial; specifics already reserved .
  • Strategic alternatives: Focus remains on improving core performance; board evaluates opportunities but near-term priority is asset quality and expense discipline .

Estimates Context

  • Q3 2025 EPS missed S&P consensus: Primary EPS actual 0.39* vs consensus 0.53*; GAAP diluted EPS reported was $0.35 .
  • Q3 2025 revenue fell short of S&P consensus: actual $96.843M* vs $110.205M*; note S&P’s bank “Revenue” definition may differ from NII+noninterest income (Amerant reported NII $94.2M and noninterest income $17.3M) .
  • Expect sell-side to lower near-term EPS given elevated provision and higher core expenses; Q4 guidance implies improved core ROA and expense normalization .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • The quarter’s miss was driven by credit costs; watch Q4 asset-quality updates and evidence of NPL reductions as the key stock driver .
  • NIM strength provides a cushion, but normalization is likely; deposit cost management and special asset recoveries are swing factors for Q4 .
  • Expense reduction initiatives are tangible (core opex guided $74–$75M in Q4) with larger savings targeted in 2026; monitor execution .
  • Loan growth should re-emerge via selective C&I and syndications; pipeline metrics and hold-size discipline mitigate concentration risk .
  • Capital remains robust (CET1 11.54%); buybacks and dividend signal confidence—$13M buyback planned for Q4 is a potential near-term support .
  • International/core deposit mix improvement lowers funding costs; continued brokered deposit reduction is positive for NIM and risk .
  • Near-term narrative hinges on demonstrating asset-quality progress and expense control; medium-term thesis rests on deposit-led growth, NIM resilience, and fee upside from AUM growth .

References: Q3 2025 press release and exhibits ; 8‑K Item 2.02 and earnings presentation ; Q3 2025 earnings call transcript ; Q2 2025 press release and call ; Q1 2025 press release and call .