Amerant Bancorp Inc. (AMTB)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 recovered sharply: diluted EPS was $0.40 vs. $(1.43) in Q3 2024 and $(0.51) in Q4 2023, led by higher NIM, lower provision, and non-routine gains (Houston sale, FHLB advance extinguishment) offset by smaller residual securities losses .
• Net interest margin rose to 3.75% (3.49% in Q3), cost of total deposits fell to 2.77% (2.99% in Q3), and core efficiency improved to 64.71% (69.29% in Q3), positioning near-term operating leverage as rates ease .
• Balance sheet resized after Houston franchise sale: assets $9.90B (down 4.4% q/q), deposits $7.85B (down 3.2% q/q), with organic q/q growth ex-sale of +$317M deposits and +$255M loans; management expects assets >$10B in Q1 2025 on robust pipeline .
• Guidance: Q1 2025 NIM mid‑3.60%, expenses ≈$71M (seasonal payroll taxes), annual loan growth ≈15% with deposits to match; efficiency target 60% in 2H 2025; L/D target 95% maintained—key catalysts for multiple expansion if delivered .
• Consensus estimates could not be retrieved from S&P Global during this session; we will monitor for availability (see Estimates Context).

What Went Well and What Went Wrong

• What Went Well

  • Margin and earnings recovered: NIM 3.75% (+26 bps q/q); diluted EPS $0.40 vs. $(1.43) in Q3; ROA 0.67% and ROE 7.38% vs. negative in Q3, reflecting lower provision, deposit repricing, and portfolio repositioning impact fading .
  • Strategic actions created value: $12.6M gain on Houston sale and $1.4M gain on early FHLB extinguishment; residual AFS losses narrowed to $8.1M after completing repositioning in early October .
  • Positive deposit/loan momentum excluding divestiture: ex-Houston, Q4 deposits +$317M and loans +$255M; CEO: “loan pipeline is robust… expect to be back well over $10 billion in assets in the first quarter of 2025” .

• What Went Wrong

  • Balance sheet contraction: total assets fell 4.4% q/q, deposits down 3.2% q/q due to Houston sale; AFS valuation pressures persisted with AOCL negative $55M at Q4 (expected to improve with easing policy) .
  • Credit metrics still elevated vs. prior year: NPLs/loans 1.43% (0.47% in Q4 2023); ACL coverage to NPLs down to 0.82x from 2.78x in Q4 2023; net charge-offs 0.26% benefited from lower consumer portfolio size .
  • Noninterest expense increased q/q to $83.4M on $12.6M loan sale loss and $2.5M Houston transaction costs; core opex improved to $68.2M but near-term expense guidance indicates Q1 seasonality .

Financial Results

Note: total revenue equals NII plus noninterest income per company definition .
| Total Revenue ($M) | $101.290 | $33.316 | $111.319 |

Balance Sheet and KPIs

Credit Metrics

Loan Mix (Held for Investment)

Deposits by Domicile

Noninterest Income Components (Q4 2024 highlights)

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• CEO: “Our fourth quarter results show significant improvement… Net interest income increased over 8% while provision for credit losses declined 48%… our loan pipeline is robust… we expect to be back well over $10 billion in assets in the first quarter of 2025” .
• CFO: “Net interest margin improved to 3.75%… driven by the Houston sale, investment securities repositioning and reduction in FHLB advances as well as loan production” .
• CEO: “In 2025 we will be laser‑focused on the execution of our strategic growth plans… opening West Palm Beach, two Miami Beach locations and a second downtown Tampa… firmly committed to becoming the bank of choice” .

Q&A Highlights

• Asset quality trajectory: $14.2M expected NPL reduction in coming weeks; classified assets targeted to trend down q/q; weekly progress reviews underway .
• Net charge-offs and ACL: normalized NCOs guided ~25–30 bps excluding indirect consumer; indirect consumer runoff to reduce NCOs; collateral on key credits deemed strong .
• Margin outlook: Q1 NIM to the mid‑3.60% with full-quarter effects of repricing; expectation to hold >3.60% through 2025 with production replacing paydowns .
• Deposit betas: swift Q4 downward repricing; forward full-cycle betas expected ~40 bps as competition and timing of CDs balance repricing .
• Expenses: Q1 ~ $71M (seasonal payroll taxes, growth hires); second half of 2025 efficiency ~60% primarily via revenue growth rather than large opex cuts .

Estimates Context

• Wall Street consensus from S&P Global was unavailable during this session (tool limit exceeded). We could not compare actuals to consensus for EPS or revenue; please note this and consider re-checking when accessible.
• Values would default to S&P Global when available.

Key Takeaways for Investors

• Margin expansion with falling deposit costs and completed securities repositioning supports earnings recovery; watch Q1 NIM mid‑3.60% delivery .
• Organic growth intact post-divestiture: ex-Houston, Q4 deposits +$317M and loans +$255M; pipeline implies assets >$10B in Q1 2025 .
• Credit normalization underway: q/q NPL improvement with guided further reductions; indirect consumer runoff should lower NCOs; monitor ACL/NPL coverage trend .
• Expense seasonality in Q1 offsets some leverage; 2H 2025 efficiency goal (60%) hinges on sustained revenue growth from expansion and digital initiatives .
• AUM/custody growth adds recurring fee tailwinds; rising wealth relationships diversify revenue beyond NII .
• Capital and liquidity solid: CET1 11.21%, TCE 8.77%; borrowing capacity ~$2.5B; dividend maintained at $0.09 .
• Execution catalysts in 2025: opening new FL locations, deposit mix optimization, resolving criticized credits; delivering guidance could drive multiple rerating .

Citations:
Press release and 8‑K exhibits:
Q4 2024 earnings call:
Prior quarters: Q3 2024 press release/call: ; Q2 2024 press release/call: .