10-K: Amerant Bancorp Reports Strong 2025 Net Income, Strategic Shifts

Amerant Bancorp Inc. reported a significant turnaround in 2025 with net income of $52.4 million, driven by higher noninterest income and improved net interest income, despite a decrease in total assets and loans.

Summary

• Net income attributable to Amerant Bancorp Inc. was $52.4 million in 2025, a significant increase from a net loss of $15.8 million in 2024.
• Diluted earnings per common share were $1.26 in 2025, compared to a loss of $0.44 per diluted share in 2024.
• Total assets decreased by $124.7 million (1.3%) to $9.8 billion at December 31, 2025, from $9.9 billion at December 31, 2024.
• Total gross loans decreased by $574.1 million to $6.7 billion at December 31, 2025, from $7.3 billion at December 31, 2024.
• Total deposits decreased by $67.7 million (0.9%) to $7.8 billion at December 31, 2025, from $7.9 billion at December 31, 2024.
• Net Interest Margin (NIM) increased to 3.82% in 2025 from 3.58% in 2024.
• Average yield on loans decreased to 6.85% in 2025 from 7.06% in 2024.
• Average cost of total deposits decreased to 2.47% in 2025 from 2.94% in 2024.
• Loan to deposit ratio improved to 86.01% at December 31, 2025, from 92.57% at December 31, 2024.
• Total non-performing assets increased by $64.7 million (53.0%) to $186.9 million at December 31, 2025, from $122.2 million at December 31, 2024.
• Allowance for credit losses (ACL) decreased by $5.7 million (6.7%) to $79.3 million at December 31, 2025, from $85.0 million at December 31, 2024.
• Classified loans increased by $188.3 million (113.1%) to $354.8 million at December 31, 2025, from $166.5 million at December 31, 2024.
• Special mention loans increased by $131.0 million (2423.2%) to $136.5 million at December 31, 2025, from $5.4 million at December 31, 2024.
• Core deposits increased by $170.7 million (3.0%) to $5.8 billion at December 31, 2025, from $5.6 billion at December 31, 2024.
• Assets Under Management and Custody (AUM) increased by $366.7 million (12.7%) to $3.3 billion at December 31, 2025, from $2.9 billion at December 31, 2024.
• Pre-provision net revenue (PPNR) increased by $72.4 million (198.9%) to $108.7 million in 2025 from $36.4 million in 2024.
• Net interest income (NII) increased by $34.7 million (10.7%) to $360.7 million in 2025 from $326.0 million in 2024.
• Provision for credit losses decreased to $42.6 million in 2025 from $60.5 million in 2024.
• Non-interest income increased by $68.7 million (693.3%) to $78.6 million in 2025 from $9.9 million in 2024, primarily due to higher securities gains.
• Non-interest expense increased by $31.1 million (10.4%) to $330.6 million in 2025 from $299.5 million in 2024.
• Efficiency ratio improved to 75.25% in 2025 from 89.17% in 2024.
• Return on average assets (ROA) was 0.51% in 2025 compared to -0.16% in 2024.
• Return on average equity (ROE) was 5.62% in 2025 compared to -1.99% in 2024.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, reflecting a strong financial turnaround in net income and key profitability metrics. However, the notable increase in non-performing and classified loans, coupled with a decrease in total assets and loans, introduces a degree of caution regarding asset quality and future growth trajectory.

Positives

• Net income attributable to Amerant Bancorp Inc. was $52.4 million in 2025, a significant turnaround from a net loss of $15.8 million in 2024.
• Diluted earnings per common share improved to $1.26 in 2025 from a loss of $0.44 in 2024.
• Net Interest Margin (NIM) increased by 24 basis points to 3.82% in 2025.
• Average cost of total deposits decreased by 47 basis points to 2.47% in 2025, indicating improved funding costs.
• Loan to deposit ratio improved to 86.01% at December 31, 2025, from 92.57% at December 31, 2024, reflecting reduced reliance on non-deposit funding.
• Core deposits increased by 3.0% to $5.8 billion, demonstrating success in relationship-driven funding strategies.
• Assets Under Management and Custody (AUM) increased by 12.7% to $3.3 billion, driven by market valuations and net new assets.
• Pre-provision net revenue (PPNR) increased by 198.9% to $108.7 million in 2025, showing strong operational profitability before credit provisions.
• Non-interest income saw a substantial increase of 693.3% to $78.6 million, primarily due to higher securities gains and brokerage fees.
• The efficiency ratio improved significantly to 75.25% in 2025 from 89.17% in 2024, indicating better cost management.
• Return on average assets (ROA) turned positive to 0.51% in 2025 from negative 0.16% in 2024.
• Return on average equity (ROE) turned positive to 5.62% in 2025 from negative 1.99% in 2024.
• Successfully redeemed $60.0 million in Senior Notes, reducing debt obligations.
• A new $40 million stock repurchase program was authorized for 2026, signaling confidence in future value.
• Expanded banking center network in Florida, including new offices in West Palm Beach, Miami Beach, Tampa, and Bay Harbor Islands, with a planned opening in St. Petersburg, FL in 2026.
• Enhanced technology and digital capabilities, with positive trends in digital enrollments for businesses and individuals.
• Achieved a 85% employee engagement score and was recognized among 'America's Top Most Loved Workplaces' for the fourth consecutive year.
• Both the Company and the Bank are classified as 'well-capitalized,' exceeding all regulatory capital adequacy requirements.

Negatives

• Total assets decreased by $124.7 million (1.3%) to $9.8 billion at December 31, 2025.
• Total gross loans decreased by $574.1 million (7.9%) to $6.7 billion at December 31, 2025.
• Cash and cash equivalents decreased by $120.2 million (20.4%) to $470.2 million at December 31, 2025.
• Total deposits decreased by $67.7 million (0.9%) to $7.8 billion, primarily due to a $238.4 million (10.7%) decrease in time deposits.
• Total non-performing assets increased by $64.7 million (53.0%) to $186.9 million at December 31, 2025.
• Classified loans increased by $188.3 million (113.1%) to $354.8 million at December 31, 2025, indicating deteriorating credit quality.
• Special mention loans increased by $131.0 million (2423.2%) to $136.5 million at December 31, 2025, highlighting potential future credit issues.
• Average yield on loans decreased by 21 basis points to 6.85% in 2025, impacting interest income.
• Non-interest expense increased by $31.1 million (10.4%) to $330.6 million, partly due to higher professional fees and contract termination costs.
• Losses on loans held for sale carried at the lower of cost or fair value increased to $15.7 million in 2025.
• Recorded an impairment charge of $2.5 million on an equity investment in Raistone Financial Corp.
• Incurred staff separation costs of $3.8 million related to leadership transition and Amerant Mortgage downsizing.
• The wind-down of Amerant Mortgage and dissolution of the Cayman Bank represent a reduction in business lines.
• Increased sensitivity of Economic Value of Equity (EVE) to interest rate increases, indicating higher long-term interest rate risk exposure.

Risks

• Liquidity risks could affect operations and jeopardize financial condition, and certain funding sources could increase interest rate expense.
• Inability to develop and maintain a strong core deposit base or other low-cost funding sources.
• May elect or be compelled to seek additional capital in the future, but that capital may not be available when needed or on acceptable terms.
• Ability to receive dividends from subsidiaries could affect liquidity and ability to pay dividends.
• Profitability is subject to interest rate risk, especially in declining rate environments due to asset sensitivity.
• Allowance for credit losses may prove inadequate, particularly if the economic outlook deteriorates significantly and quickly.
• Concentration of Commercial Real Estate (CRE) loans could result in increased loan losses, as CRE is cyclical and poses risks.
• Many loans are to commercial borrowers, which have unique risks compared to other types of loans, including sensitivity to economic conditions and less readily-marketable collateral.
• Valuation of securities in the investment portfolio is subjective and, if changed, could result in recognized losses.
• Nonperforming and similar assets take significant time to resolve and may adversely affect business, financial condition, results of operations, or cash flows.
• Subject to environmental liability risk associated with lending activities, particularly when foreclosing on properties.
• Increases in demand for mortgage loans due to further declines in interest rates could adversely affect the company due to reduced origination capacity after winding down Amerant Mortgage.
• Many major systems depend on and are operated by third-party vendors, and any systems failures or interruptions could adversely affect operations and customer services.
• Information systems are exposed to cybersecurity threats and may experience interruptions and security breaches that could adversely affect business and reputation.
• Strategic plan and growth strategy may not be achieved as quickly or as fully as sought, impacting business, financial conditions, results of operations, or cash flows.
• Defaults by or deteriorating asset quality of other financial institutions could adversely affect the company due to interdependencies in the financial services industry.
• New lines of business, new products or services, and technological advancements may subject the company to additional risks, including compliance and competitive factors.
• Susceptible to operational risks in general and fraudulent risk in particular, exacerbated by new technologies like AI and remote work arrangements.
• Conditions or developments in Venezuela could adversely affect operations, given that 25% of deposits are from Venezuelan residents.
• Subject to Environmental, Social, and Governance (ESG) risks, including conflicting stakeholder expectations and state-level anti-ESG initiatives, which could harm reputation and business.
• May be unable to attract and retain key people to support the business, impacting strategy implementation and increasing labor costs.
• Severe weather, natural disasters, global pandemics, acts of war or terrorism, theft, civil unrest, government expropriation, or other external events could have significant effects on the business, especially given concentration in South Florida and Tampa.
• Failure to protect the confidentiality of customer information could adversely affect reputation and subject the company to financial sanctions and other costs.
• Could be required to write down goodwill or other intangible assets, impacting financial condition.
• Net deferred tax asset may or may not be fully realized, potentially requiring a valuation allowance.
• May incur losses due to minority investments in fintech and specialty finance companies.
• Subject to risks associated with sub-leasing portions of corporate headquarters building, including subtenant defaults.
• Success depends on ability to compete effectively in highly competitive markets with larger financial institutions and fintechs.
• Potential gaps in risk management policies and internal audit procedures may leave the company exposed to unidentified or unanticipated risk.
• Failure to maintain effective internal control over financial reporting could impair reliability of financial statements and investor confidence.
• Changes in accounting standards could materially impact financial statements.
• Material and negative developments adversely impacting the financial services industry at large and causing volatility in financial markets and the economy may have materially adverse effects.
• Business may be adversely affected by economic conditions in general and by conditions in the financial markets, particularly in primary Florida markets.
• Subject to extensive regulation that could limit or restrict activities and adversely affect earnings, with additional requirements upon exceeding $10 billion in assets.
• Uncertainty surrounding potential legal, regulatory, and policy changes by the presidential administration in the United States that may directly affect financial institutions.
• Changes in federal, state or local tax laws, or audits from tax authorities, could negatively affect business.
• Litigation and regulatory investigations are increasingly common and may result in significant financial losses and/or harm to reputation.
• Subject to capital adequacy and liquidity standards; failure to meet these standards could adversely affect business.
• Increases in FDIC deposit insurance premiums and assessments could adversely affect financial condition.
• Federal banking agencies periodically conduct examinations; failure to comply with any regulatory actions could adversely impact the company.
• The Federal Reserve may require the company to commit capital resources to support the Bank.
• May face higher risks of noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations than other financial institutions.
• Failures to comply with the fair lending laws, CFPB regulations or the Community Reinvestment Act (CRA) could adversely affect the company.
• Principal shareholders and management own a significant percentage of voting common stock and will be able to exert significant control over matters subject to shareholder approval.
• Rights of common shareholders are subordinate to the holders of any debt securities.
• Stock price may fluctuate significantly due to various factors, including broad market conditions.
• Can issue additional equity securities, which would lead to dilution of issued and outstanding Class A common stock.
• Certain provisions of amended and restated articles of incorporation and bylaws, Florida law, and U.S. banking laws could have anti-takeover effects.
• May not be able to generate sufficient cash to service all debt, including Subordinated Notes and Debentures.
• As a holding company with limited operations, depends on subsidiaries for funds required to make debt payments.
• May incur a substantial level of debt that could materially adversely affect ability to generate sufficient cash to fulfill obligations.

Future Outlook

The company expects to complete the wind-down of Amerant Mortgage and the dissolution of the Cayman Bank during the first half of 2026. A new banking center in St. Petersburg, FL, is expected to open in 2026. The company anticipates its total assets may exceed $10 billion in 2026, which would subject the Bank to direct CFPB supervision and Durbin Amendment limits by July 1, 2027. Management believes that net income, deposits, FHLB advances, and available other funding sources will be sufficient to fund liquidity requirements for the next twelve months. The 2026-2028 Strategic Plan aims to prudently accelerate growth across core and adjacent markets in its second and third years. The company is evaluating the impact of new accounting guidance for interim reporting (effective after December 15, 2027) and expense disaggregation (effective after December 15, 2026) on its consolidated financial statements.

Management Comments

• Amerant's strategy is designed to improve value for its three most important stakeholders: shareholders, clients, and team members.
• Bring the entire workforce aligned with a culture of attaining client primacy and driving organic growth.
• Measure everything against profitability to ensure prioritization of highest value opportunities.
• Align enterprise-wide focus on executing defined strategic initiatives.
• Be the Bank of Choice in the markets we serve by earning the Trusted Advisor role to the client.
• Deliver a relationship-first, solution-oriented approach.
• Provide consistent, personalized client experiences driven by the proactive delivery of tailored solutions, relationship-based pricing, and service excellence.
• Create a simple, seamless, and streamlined onboarding and servicing experience.
• Be the Employer of Choice in the markets we serve by attracting, retaining, developing, recognizing, and rewarding our team members.
• Implement talent development programs that enable our people to pursue career aspirations, expand their depth of knowledge, and improve their skill set.
• Align incentives to strategic priorities and reward our team members for improving value to our stakeholders.
• Our commitment to digital enablement has resulted in increases in digital enrollments noted for businesses and individuals.
• Our growth in 2025 was reflective of our deposits-first, organic, relationship-based approach.
• Human Capital has evolved from being one of several strategic pillars to serving as a central component of the Company's strategy, reflecting management's view that a strong and stable workforce is the key enabler of all strategic initiatives.
• The objective to profitably grow the Bank remains a core strategic pillar, although prioritizing balance sheet size rationalization and customer profitability in line with the Bank's risk appetite.
• We proactively and carefully monitor the Company's credit quality practices, including examining and responding to patterns or trends that may arise across certain industries or regions.
• Management believes that the weight of all the positive evidence currently available exceeds the negative evidence in support of the realization of the future tax benefits associated with the federal net deferred tax asset.

Industry Context

StockSavvy.ai notes that Amerant Bancorp's strategic pivot to an in-footprint mortgage model and focus on core Florida markets aligns with a broader trend among regional banks to concentrate resources on high-growth local economies and relationship-based banking, especially in competitive environments. The increased scrutiny on ESG matters and evolving cybersecurity threats are industry-wide challenges that Amerant is actively addressing through its enhanced risk management framework. The company's efforts to reduce reliance on brokered deposits and improve its loan-to-deposit ratio reflect a common industry goal to strengthen funding stability amidst market volatility and rising interest rates. The potential for exceeding $10 billion in assets in 2026 highlights a critical regulatory threshold for regional banks, triggering increased CFPB supervision and Durbin Amendment applicability, a transition many growing institutions navigate.

Comparison to Industry Standards

• Amerant's NIM of 3.82% in 2025 is competitive, though specific peer comparisons would require detailed industry data. Many regional banks have seen NIM compression due to rising funding costs, so Amerant's increase is notable.
• The increase in non-performing assets to 2.56% of total loans and classified loans by 113.1% suggests a deterioration in asset quality that warrants close monitoring, potentially lagging some industry peers who might have already recognized such issues or have more diversified portfolios.
• The efficiency ratio improvement to 75.25% from 89.17% indicates better cost management, which is a key focus across the banking sector, especially for regional players optimizing operations.
• The CET1 ratio of 11.80% for the company and 12.35% for the bank positions Amerant as 'well-capitalized,' exceeding regulatory minimums and aligning with strong capital positions generally expected in the industry.
• The 85% employee engagement score and 'Top Most Loved Workplaces' recognition suggest strong human capital management, potentially outperforming some industry averages in employee satisfaction and retention.

Management Changes

Corporate Governance

Legal Proceedings

• The company is involved in litigation, regulatory matters, and other legal proceedings in the ordinary course of business, including claims related to fund ownership, credit disputes, security interests, foreclosure, employment, and general tort matters.
• Management believes no pending litigation will have a material adverse effect on financial position, results of operations, or cash flows.
• Reserves are established for probable and reasonably estimable losses in accordance with FASB ASC Topic 450, Contingencies.
• On October 21, 2025, the Company entered into a Wind-down and Settlement Agreement with a commercial borrower to resolve an existing loan participation agreement, assuming risk of future credit losses up to a cumulative cap of $7.7 million through June 30, 2026. The borrower guarantees amounts exceeding the Loss Cap up to $13.9 million.

Related Party Transactions

• Transactions with related parties (directors, executive officers, 5%+ shareholders, immediate family) are conducted under the company's policies and applicable law, on substantially the same terms as with unaffiliated third parties.
• Loans to related parties amounted to $4.4 million at December 31, 2025, down from $5.2 million at December 31, 2024.
• Interest income on these loans was approximately $0.1 million in 2025 and 2024.
• Demand deposits (noninterest bearing) from related parties were $1.069 million at December 31, 2025.
• Interest bearing demand, savings and money market deposits from related parties were $4.640 million at December 31, 2025.
• Time deposits and accounts payable from related parties were $2.203 million at December 31, 2025.
• Total due to related parties was $7.912 million at December 31, 2025.
• The Company had approximately $1.7 million due to its Trust Subsidiaries as of December 31, 2025, included in accounts payable.

Stakeholder Impact

• Shareholders: Positive impact from increased net income, positive ROA/ROE, improved efficiency ratio, and new stock repurchase program. Potential dilution from future equity issuance is a risk. Significant control by principal shareholders and management.
• Clients: Continued focus on client primacy, relationship-first approach, personalized experiences, and streamlined onboarding. Expansion of banking centers aims to increase accessibility. Introduction of new payment solutions like Real-Time Payment (RTP) and Business Escrow (DESA).
• Employees: Strong commitment to attracting, retaining, and developing talent, reflected in high engagement scores and 'Top Most Loved Workplaces' recognition. Leadership transition and Amerant Mortgage downsizing led to staff separation costs, indicating some workforce adjustments. Comprehensive health, wellness, and retirement benefits.
• Suppliers/Vendors: Review of partnership portfolio led to termination of certain advertising arrangements, sports partnerships, and a third-party loan origination agreement, potentially impacting some vendors. Increased reliance on third-party technology vendors.
• Creditors: Redemption of Senior Notes reduces overall debt. Subordinated notes and debentures remain outstanding, with common shareholders' rights subordinate to debt holders. Capital adequacy ratios remain strong, providing comfort to creditors.
• Communities: Continued advancement of Impact Program through community education, environmental stewardship, and financial literacy efforts. Expansion of banking centers in Florida.

Next Steps

• Complete the wind-down of Amerant Mortgage during the first half of 2026.
• Complete the dissolution of the Cayman Bank in the first half of 2026.
• Open a new banking center in St. Petersburg, FL in 2026.
• Implement additional action plans throughout 2026 to address recommendations from the compliance management system and risk management program assessment.
• Monitor further regulatory developments regarding the CRA and adjust compliance and strategic planning as necessary.
• Monitor when CFPB examinations will restart and how changes will impact the company.
• Execute the 2026 Stock Repurchase Program for up to $40 million of Class A common stock until December 31, 2026.
• Prudently accelerate growth across core and adjacent markets in the second and third years of the 2026-2028 Strategic Plan.
• Continue to actively review and enhance product offerings, including treasury management, deposit, and payment capabilities.
• Continue to advance the operating model and elevate client interactions, supported by the 'Transform Credit' and 'Operational Efficiency' pillars.
• Continue to develop internal and external talent pipelines and align incentive structures with strategic objectives.
• Monitor progress through engagement pulse activities in 2026.

Key Dates

Recommendation

Amerant Bancorp Inc. demonstrated a strong financial turnaround in 2025, moving from a net loss to significant net income, driven by improved NIM and non-interest income. The company's strategic focus on core Florida markets, digital enablement, and human capital management are positive long-term indicators. However, the notable increase in non-performing and classified loans, coupled with a decrease in total assets and loans, signals potential asset quality challenges that warrant caution. While capital ratios remain robust, the mixed financial performance and ongoing strategic transitions suggest a 'hold' recommendation, allowing investors to monitor the effectiveness of the new strategic pillars and the resolution of asset quality issues before making further investment decisions.

Keywords

Banking, Financial Services, Regional Bank, Florida, South Florida, Tampa, Commercial Real Estate, CRE, Loans, Deposits, Net Interest Margin, NIM, Asset Quality, Non-Performing Assets, Capital Adequacy, Liquidity, Fintech, Wealth Management, SEC Filing, 10-K, Amerant Bancorp, AMTB, Corporate Governance, Risk Management, Cybersecurity, ESG