Amerant Bancorp Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.13%.
Did AMTB Beat Earnings? Q1 2025 Results
Amerant Bancorp delivered a sharply mixed first quarter in 2025, posting earnings per diluted share of $0.28 against a consensus estimate of $0.40, a miss of 29.11%, even as revenue of $105.43 million edged past the $101.83 million estimate by 3.53%. The bottom-line shortfall, set against a revenue decline of 33.7% year over year, was driven largely by a near-doubling of the provision for credit losses to $18.45 million from $9.91 million in the prior quarter, as five commercial loans totaling $34.00 million were downgraded to substandard non-accrual status following review of borrowers' year-end financials. The earnings miss triggered a more than 13% drop in the company's share price and prompted multiple securities fraud investigations by law firms on behalf of investors. On a more constructive note, deposit growth was solid at 3.8% quarter over quarter, and the company is restructuring its Amerant Mortgage unit to a Florida-only model, targeting roughly $2.50 million in quarterly expense savings beginning in Q3 2025, with management guiding for net interest margin in the mid-3.60% range for the second quarter.
- Solid deposit growth of 3.8% QoQ with core deposits up 6.6%
- Stable net interest margin of 3.75%, unchanged from Q4 2024
- Average cost of total deposits declined to 2.60% from 2.77% in Q4 2024
- Non-interest expense down 14.2% QoQ to $71.6 million, improving efficiency ratio to 67.87%
- Pre-provision net revenue increased 21.3% QoQ to $33.9 million
- Higher provision for credit losses of $18.4 million due to macroeconomic environment and specific reserves on commercial credits
“Our results for the first quarter showed solid deposit growth as well as strong pre-provision net revenue, as net interest income and net interest margin were higher than expected. In addition, we exercised prudent expense management, even while continuing to execute on our strategy to add new locations and business development and risk management team members”
Amerant Bancorp CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, the company projects deposit growth in line with previous guidance of 15% annualized with a continued focus on improving the ratio of non-interest bearing to total deposits. Loan growth is projected in the range of 10-15% by year end, with temporary asset mix shifts (e.g., investment securities) expected if net loan growth occurs later in the year. Net interest margin is projected to be in the mid-3.60% range in Q2 2025. Expenses in Q2 2025 are expected at similar levels to Q1 2025, as cost reductions are expected to be offset by investment in continued expansion. Further cost reductions related to Amerant Mortgage (approximately $2.5 million per quarter) are expected starting in Q3 2025. The company noted that while loan demand remains strong, borrowers may take a cautious approach given recent market volatility and uncertainty.
AMTB YoY Financials
AMTB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.