Amerant Bancorp Reports $23M Net Income and Strategic Shift in Mortgage Business

Amerant Bancorp Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved a net income of $23.0 million, or $0.55 per diluted share, marking a substantial increase from $4.96 million, or $0.15 per diluted share, in the same quarter of the previous year. For the first half of 2025, net income reached $34.96 million, compared to $15.53 million in the first half of 2024. This growth was primarily driven by a 14% increase in net interest income, which rose to $90.5 million, alongside a significant reduction in the provision for credit losses, which fell by 68% to $6.06 million.

Total assets for Amerant Bancorp increased by 4.4% to $10.33 billion as of June 30, 2025, up from $9.90 billion at the end of 2024. This growth was largely attributed to a $473 million increase in total securities, primarily in debt securities available for sale and trading securities. Total deposits also saw a notable rise, increasing by 5.8% to $8.31 billion, driven by a $269.5 million increase in savings and money market deposits and a $201.8 million rise in noninterest-bearing demand deposits.

Strategically, Amerant Bancorp is focusing on enhancing its mortgage business by transitioning from a national mortgage originator to a more localized approach, specifically targeting Florida markets. This shift includes a planned reduction in full-time employees from 77 to approximately 20 and the transfer of loans into the company's core platform. Additionally, the company has been actively expanding its geographic footprint, opening a new regional headquarters and banking center in West Palm Beach, with further expansions planned in Miami Beach and Tampa.

Operationally, the company reported a decrease in non-performing assets, which fell to $97.9 million from $122.2 million at the end of 2024. The allowance for credit losses increased slightly to $86.5 million, representing 1.20% of total loans held for investment. The company also noted a decrease in the loan-to-deposit ratio to 86.5% from 92.6% at the end of 2024, indicating a more conservative approach to lending amid changing market conditions.

Looking ahead, Amerant Bancorp remains cautiously optimistic about its financial outlook, despite ongoing macroeconomic uncertainties, including inflation and fluctuating interest rates. The company is focused on maintaining its capital ratios above regulatory requirements and is well-positioned to navigate potential challenges in the banking sector. The management anticipates that its strategic initiatives will support continued growth and stability in the coming quarters.