[2Q25 Financial Highlights](index=1&type=section&id=2Q25%20Financial%20Highlights) [Net Income and EPS](index=1&type=section&id=2.1%20Net%20Income%20and%20EPS) Amerant Bancorp Inc. reported a significant increase in net income attributable to the Company and diluted EPS for Q2 2025 compared to Q1 2025, driven by higher core pre-provision net revenue and a lower provision for credit losses Net Income and EPS (in millions, except per share amounts) | Metric | 2Q25 | 1Q25 | Change (QoQ) | Change (%) | | :-------------------------------- | :----- | :----- | :----------- | :--------- | | Net Income Attributable to Company | $23.0M | $12.0M | +$11.0M | +91.7% | | Diluted EPS | $0.55 | $0.28 | +$0.27 | +96.4% | - The improved results were driven by higher core pre-provision net revenue combined with a lower provision for credit losses[2](index=2&type=chunk) [Key Financial and Operational Metrics (QoQ Changes)](index=1&type=section&id=2.2%20Key%20Financial%20and%20Operational%20Metrics%20(QoQ%20Changes)) Amerant experienced growth in total assets, investment securities, and deposits, alongside improvements in asset quality and profitability ratios, and declared a quarterly cash dividend Key Financial and Operational Metrics (QoQ Changes) | Metric | 2Q25 (Value) | 1Q25 (Value) | Change (QoQ) | Change (%) | | :--------------------------- | :----------- | :----------- | :----------- | :--------- | | Total Assets | $10.3B | $10.2B | +$165.0M | +1.6% | | Total Gross Loans | $7.2B | $7.2B | -$30.0M | -0.4% | | Cash & Cash Equivalents | $636.8M | $648.4M | -$11.5M | -1.8% | | Investment Securities | $2.0B | $1.8B | +$209.2M | +11.9% | | Total Deposits | $8.3B | $8.2B | +$151.6M | +1.9% | | Core Deposits | $6.1B | $6.0B | +$150.6M | +2.5% | | FHLB Advances | $765.0M | $715.0M | +$50.0M | +7.0% | | Net Interest Margin (NIM) | 3.81% | 3.75% | +0.06% | - | | Average Yield on Loans | 6.88% | 6.84% | +0.04% | - | | Average Cost of Total Deposits | 2.53% | 2.60% | -0.07% | - | | Loan to Deposit Ratio | 86.5% | 88.5% | -2.0% | - | | Total Non-Performing Assets | $97.9M | $140.8M | -$42.9M | -30.5% | | Allowance for Credit Losses (ACL) | $86.5M | $98.3M | -$11.7M | -12.0% | | Assets Under Management (AUM) | $3.07B | $2.93B | +$132.4M | +4.5% | | Pre-provision Net Revenue (PPNR) | $35.9M | $33.9M | +$2.0M | +5.9% | | Core PPNR | $37.1M | $31.5M | +$5.6M | +17.7% | | Net Interest Income (NII) | $90.5M | $85.9M | +$4.6M | +5.3% | | Provision for Credit Losses | $6.1M | $18.4M | -$12.4M | -67.1% | | Non-interest Income | $19.8M | $19.5M | +$0.3M | +1.3% | | Non-interest Expense | $74.4M | $71.6M | +$2.8M | +4.0% | | Efficiency Ratio | 67.5% | 67.9% | -0.4% | - | | Return on Average Assets (ROA) | 0.90% | 0.48% | +0.42% | - | | Return on Average Equity (ROE) | 10.06% | 5.32% | +4.74% | - | - The Board of Directors declared a quarterly cash dividend of **$0.09 per share** of common stock, payable on August 29, 2025, to shareholders of record on August 15, 2025[3](index=3&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Amerant Bancorp Inc. will host an earnings conference call on July 24, 2025, to discuss its second quarter 2025 results, with webcast access and replay available via the Investor Relations website - An earnings conference call will be held on Thursday, July 24, 2025, at 8:30 a.m. (Eastern Time) to discuss 2Q25 results[5](index=5&type=chunk) - The conference call and presentation materials can be accessed via webcast from the Investor Relations section of the Company's website (https://investor.amerantbank.com), with an online replay available for approximately one month[5](index=5&type=chunk) [About Amerant Bancorp Inc.](index=3&type=section&id=About%20Amerant%20Bancorp%20Inc.) Amerant Bancorp Inc. is a Florida-based bank holding company operating through Amerant Bank, N.A., Amerant Investments, Inc., and Amerant Mortgage, LLC, providing deposit, credit, and wealth management services with 20 banking centers - Amerant Bancorp Inc. (NYSE: AMTB) is a bank holding company headquartered in Coral Gables, Florida since 1979[6](index=6&type=chunk) - The Company operates through its main subsidiary, Amerant Bank, N.A., and other subsidiaries: Amerant Investments, Inc., and Amerant Mortgage, LLC[6](index=6&type=chunk) - It provides deposit, credit, and wealth management services to individuals and businesses, operating 20 banking centers (19 in South Florida and 1 in Tampa)[6](index=6&type=chunk) [Cautionary Notice Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Notice%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements about future performance and objectives, which involve known and unknown risks and uncertainties that may cause actual results to differ materially - The press release contains forward-looking statements regarding future operating or financial performance, expectations, plans, and objectives[7](index=7&type=chunk) - These statements involve known and unknown risks, uncertainties, and other factors beyond the Company's control, which may cause actual results to differ materially[8](index=8&type=chunk) - Readers should not rely on forward-looking statements as predictions of future events and the Company does not commit to updating them, except as required by law. Risks are further described in the 2024 Form 10-K and other SEC filings[8](index=8&type=chunk)[9](index=9&type=chunk) [Interim Financial Information Note](index=4&type=section&id=Interim%20Financial%20Information%20Note) The unaudited interim financial information presented may not be indicative of the Company's full fiscal year results or financial condition - Unaudited financial information for interim periods (e.g., three and six months ended June 30, 2025 and 2024, and three months ended March 31, 2025, December 31, 2024, and September 30, 2024) may not reflect the full fiscal year results or financial condition as of December 31, 2025, or any other period[10](index=10&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation and Use of Non-GAAP Measures](index=5&type=section&id=Explanation%20and%20Use%20of%20Non-GAAP%20Measures) The Company uses non-GAAP financial measures, such as PPNR and Core PPNR, to supplement GAAP results, believing they are useful for investors and management in evaluating performance - The Company supplements GAAP financial results with non-GAAP financial measures, including 'pre-provision net revenue (PPNR)', 'core pre-provision net revenue (Core PPNR)', 'core net income', 'core earnings per share', 'core return on assets (Core ROA)', 'core return on equity (Core ROE)', and 'core efficiency ratio'[11](index=11&type=chunk) - Management uses these non-GAAP measures to explain results to shareholders, the investment community, and for internal business evaluation, believing they provide useful insights into performance[12](index=12&type=chunk) - These non-GAAP measures are considered supplemental and not a substitute for or superior to GAAP financial information, and may differ from similar measures presented by other companies[12](index=12&type=chunk) [Non-GAAP Financial Measures Reconciliation (Exhibit 2)](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation%20(Exhibit%202)) Exhibit 2 provides a reconciliation of various non-GAAP financial measures to their GAAP equivalents, adjusting for non-core banking activities to offer a clearer view of underlying performance - The reconciliation adjusts for non-core banking activities such as the sale of loans and securities, Amerant Mortgage downsizing, the Houston Transaction, valuation adjustments, early repayment of FHLB advances, impairment of investments, and other non-routine actions[20](index=20&type=chunk) Core Pre-provision Net Revenue (Core PPNR) Reconciliation (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net income (loss) attributable to Amerant Bancorp Inc. | $23,002 | $11,958 | $16,881 | $(48,164) | $4,963 | | Plus: provision for credit losses | 6,060 | 18,446 | 9,910 | 19,000 | 19,150 | | Plus: provision for income tax expense (benefit) | 6,795 | 3,471 | 1,142 | (13,728) | 1,360 | | **Pre-provision net revenue (loss) (PPNR)** | **35,857** | **33,875** | **27,933** | **(42,892)** | **25,473** | | Plus: non-routine noninterest expense items | 1,192 | 534 | 15,148 | 5,672 | 5,562 | | (Less) plus: non-routine noninterest income items | 73 | (2,863) | (5,864) | 68,484 | (28) | | **Core pre-provision net revenue (Core PPNR)** | **$37,122** | **$31,546** | **$37,217** | **$31,264** | **$31,007** | Core Net Income and EPS Reconciliation (in thousands, except percentages and per share amounts) | (in thousands, except percentages and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net income (loss) attributable to Amerant Bancorp Inc. | $23,002 | $11,958 | $16,881 | $(48,164) | $4,963 | | Total after-tax non-routine items in noninterest expense | 920 | 414 | 11,739 | 4,340 | 4,366 | | Total after-tax non-routine items in noninterest income (loss) | 62 | (2,219) | (7,460) | 53,073 | (22) | | **Core net income** | **$23,984** | **$10,153** | **$21,160** | **$9,249** | **$9,307** | | Basic earnings (loss) per share | $0.55 | $0.28 | $0.40 | $(1.43) | $0.15 | | Plus: after tax impact of non-routine items in noninterest expense | 0.02 | 0.01 | 0.28 | 0.13 | 0.13 | | (Less) plus: after tax impact of non-routine items in noninterest income (loss) | — | (0.05) | (0.18) | 1.57 | — | | **Total core basic earnings per common share** | **$0.57** | **$0.24** | **$0.50** | **$0.27** | **$0.28** | | Diluted earnings (loss) per share | $0.55 | $0.28 | $0.40 | $(1.43) | $0.15 | | Plus: after tax impact of non-routine items in noninterest expense | 0.02 | 0.01 | 0.28 | 0.13 | 0.13 | | (Less) plus: after tax impact of non-routine items in noninterest income (loss) | — | (0.05) | (0.18) | 1.57 | — | | **Total core diluted earnings per common share** | **$0.57** | **$0.24** | **$0.50** | **$0.27** | **$0.28** | [Selected Financial Information (Exhibit 1)](index=6&type=section&id=Selected%20Financial%20Information%20(Exhibit%201)) [Consolidated Balance Sheets (Summary)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20(Summary)) The summary balance sheet shows an increase in total assets, investments, and deposits, while total gross loans and allowance for credit losses saw slight decreases from the prior quarter Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total assets | $10,334,678 | $10,169,688 | $9,901,734 | $10,353,127 | $9,747,738 | | Total investments | 1,970,888 | 1,761,678 | 1,497,925 | 1,542,544 | 1,547,864 | | Total gross loans | 7,189,196 | 7,219,162 | 7,271,322 | 7,561,963 | 7,322,911 | | Allowance for credit losses | 86,519 | 98,266 | 84,963 | 79,890 | 94,400 | | Total deposits | 8,306,544 | 8,154,978 | 7,854,595 | 8,110,944 | 7,816,011 | | Core deposits | 6,143,625 | 5,993,055 | 5,620,150 | 5,707,366 | 5,505,349 | | Advances from FHLB | 765,000 | 715,000 | 745,000 | 915,000 | 765,000 | | Stockholders' equity | 924,286 | 906,263 | 890,467 | 902,888 | 734,342 | | Assets under management and custody | 3,065,020 | 2,932,602 | 2,890,048 | 2,550,541 | 2,451,854 | [Consolidated Results of Operations (Summary)](index=6&type=section&id=Consolidated%20Results%20of%20Operations%20(Summary)) Net interest income and net income attributable to Amerant Bancorp Inc. increased significantly quarter-over-quarter, while provision for credit losses decreased substantially Consolidated Results of Operations Highlights (in thousands) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net interest income | $90,479 | $85,904 | $87,635 | $80,999 | $79,355 | | Provision for credit losses | 6,060 | 18,446 | 9,910 | 19,000 | 19,150 | | Noninterest income (loss) | 19,778 | 19,525 | 23,684 | (47,683) | 19,420 | | Noninterest expense | 74,400 | 71,554 | 83,386 | 76,208 | 73,302 | | Net income (loss) attributable to Amerant Bancorp Inc. | 23,002 | 11,958 | 16,881 | (48,164) | 4,963 | | Effective income tax rate | 22.80% | 22.50% | 6.34% | 22.18% | 21.51% | | Diluted earnings (loss) per common share | $0.55 | $0.28 | $0.40 | $(1.43) | $0.15 | | Cash dividend declared per common share | $0.09 | $0.09 | $0.09 | $0.09 | $0.09 | [Other Financial and Operating Data (Ratios)](index=7&type=section&id=Other%20Financial%20and%20Operating%20Data%20(Ratios)) Profitability, capital, liquidity, asset quality, and efficiency ratios all showed improvements quarter-over-quarter, with ROA and ROE significantly increasing Key Financial and Operating Ratios (%) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net interest income / Average total interest earning assets (NIM) | 3.81% | 3.75% | 3.75% | 3.49% | 3.56% | | Net income (loss)/ Average total assets (ROA) | 0.90% | 0.48% | 0.67% | (1.92)% | 0.21% | | Net income (loss)/ Average stockholders' equity (ROE) | 10.06% | 5.32% | 7.38% | (24.98)% | 2.68% | | Total capital ratio | 13.49% | 13.45% | 13.43% | 12.72% | 11.88% | | Tier 1 capital ratio | 11.97% | 11.84% | 11.95% | 11.36% | 10.34% | | Tier 1 leverage ratio | 9.69% | 9.73% | 9.66% | 9.56% | 8.74% | | Common equity tier 1 capital ratio (CET1) | 11.25% | 11.11% | 11.21% | 10.65% | 9.60% | | Loans to Deposits | 86.55% | 88.52% | 92.57% | 93.23% | 93.69% | | Non-performing assets / Total assets | 0.95% | 1.38% | 1.23% | 1.25% | 1.24% | | Non-performing loans / Total gross loans | 1.15% | 1.71% | 1.43% | 1.52% | 1.38% | | Efficiency ratio | 67.48% | 67.87% | 74.91% | 228.74% | 74.21% | [Core Selected Consolidated Results of Operations and Other Data (Core Ratios)](index=8&type=section&id=Core%20Selected%20Consolidated%20Results%20of%20Operations%20and%20Other%20Data%20(Core%20Ratios)) Core profitability metrics, including Core PPNR, Core Net Income, Core ROA, and Core ROE, demonstrated strong quarter-over-quarter growth, reflecting improved underlying operational performance Core Financial and Operating Ratios (in thousands, except percentages and per share amounts) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Pre-provision net revenue (loss) (PPNR) | $35,857 | $33,875 | $27,933 | $(42,892) | $25,473 | | Core pre-provision net revenue (Core PPNR) | $37,122 | $31,546 | $37,217 | $31,264 | $31,007 | | Core net income | $23,984 | $10,153 | $21,160 | $9,249 | $9,307 | | Core basic earnings per common share | 0.57 | 0.24 | 0.50 | 0.27 | 0.28 | | Core earnings per diluted common share | 0.57 | 0.24 | 0.50 | 0.27 | 0.28 | | Core net income / Average total assets (Core ROA) | 0.94% | 0.41% | 0.83% | 0.37% | 0.38% | | Core net income / Average stockholders' equity (Core ROE) | 10.49% | 4.52% | 9.25% | 4.80% | 5.03% | | Core efficiency ratio | 66.35% | 69.24% | 64.71% | 69.29% | 68.60% | [Detailed Financial Exhibits](index=13&type=section&id=Detailed%20Financial%20Exhibits) [Average Balance Sheet, Interest and Yield/Rate Analysis (Exhibit 3)](index=13&type=section&id=Average%20Balance%20Sheet%2C%20Interest%20and%20Yield%2FRate%20Analysis%20(Exhibit%203)) Exhibit 3 provides a detailed breakdown of average balance sheet components, interest income, interest expense, and corresponding yields/rates for both three-month and six-month periods - The analysis includes average balances for loans (performing and nonperforming), interest income on loans (including discount accretion and amortization of loan origination fees), and average daily balances for the periods presented[32](index=32&type=chunk) [Three Months Ended Analysis](index=13&type=section&id=Three%20Months%20Ended%20Analysis) For the three months ended June 30, 2025, average interest-earning assets increased, driven by debt securities, while the average yield on loans slightly increased and the average cost of total deposits decreased, contributing to an improved net interest margin Average Balance Sheet and Yield/Rate Analysis (Three Months Ended, in thousands, except percentages) | Metric (in thousands, except percentages) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :------------ | | **Interest-earning assets:** | | | | | Loan portfolio, net (Average Balances) | $7,118,087 | $7,174,160 | $7,049,109 | | Loan portfolio, net (Yield/Rates) | 6.88% | 6.84% | 7.08% | | Debt securities available for sale (Average Balances) | 1,769,440 | 1,473,170 | 1,267,828 | | Debt securities available for sale (Yield/Rates) | 4.97% | 4.95% | 4.47% | | Total interest earning assets (Average Balances) | 9,527,962 | 9,294,146 | 8,966,038 | | Total interest earning assets (Yield/Rates) | 6.36% | 6.39% | 6.57% | | **Interest-bearing liabilities:** | | | | | Total deposits (Average Balances) | 6,600,930 | 6,411,674 | 6,332,864 | | Total deposits (Yield/Rates) | 3.15% | 3.23% | 3.67% | | Advances from the FHLB (Average Balances) | 717,260 | 723,667 | 737,658 | | Advances from the FHLB (Yield/Rates) | 4.04% | 4.04% | 3.79% | | Total interest-bearing liabilities (Average Balances) | 7,412,162 | 7,289,048 | 7,223,989 | | Total interest-bearing liabilities (Yield/Rates) | 3.28% | 3.37% | 3.73% | | Net interest income | $90,479 | $85,904 | $79,355 | | Net interest rate spread | 3.08% | 3.02% | 2.84% | | Net interest margin | 3.81% | 3.75% | 3.56% | | Cost of total deposits | 2.53% | 2.60% | 2.98% | [Six Months Ended Analysis](index=15&type=section&id=Six%20Months%20Ended%20Analysis) For the six months ended June 30, 2025, average interest-earning assets increased, with a slight decrease in overall yield, while net interest income improved and the net interest margin expanded compared to the prior year period Average Balance Sheet and Yield/Rate Analysis (Six Months Ended, in thousands, except percentages) | Metric (in thousands, except percentages) | June 30, 2025 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------ | | **Interest-earning assets:** | | | | Loan portfolio, net (Average Balances) | $7,145,968 | $7,018,015 | | Loan portfolio, net (Yield/Rates) | 6.86% | 7.07% | | Debt securities available for sale (Average Balances) | 1,622,123 | 1,253,795 | | Debt securities available for sale (Yield/Rates) | 4.96% | 4.38% | | Total interest-earning assets (Average Balances) | 9,411,700 | 8,949,515 | | Total interest-earning assets (Yield/Rates) | 6.37% | 6.54% | | **Interest-bearing liabilities:** | | | | Total deposits (Average Balances) | 6,506,825 | 6,381,645 | | Total deposits (Yield/Rates) | 3.19% | 3.67% | | Advances from the FHLB (Average Balances) | 720,446 | 691,206 | | Advances from the FHLB (Yield/Rates) | 4.04% | 3.64% | | Total interest-bearing liabilities (Average Balances) | 7,350,946 | 7,226,194 | | Total interest-bearing liabilities (Yield/Rates) | 3.32% | 3.72% | | Net interest income | $176,383 | $157,323 | | Net interest rate spread | 3.05% | 2.82% | | Net interest margin | 3.78% | 3.54% | | Cost of total deposits | 2.56% | 2.99% | [Noninterest Income (Exhibit 4)](index=17&type=section&id=Noninterest%20Income%20(Exhibit%204)) Noninterest income saw a slight increase quarter-over-quarter, primarily driven by higher loan-level derivative income and securities gains, partially offset by derivative losses Noninterest Income (in thousands) | Category | June 30, 2025 (Amount) | June 30, 2025 (%) | March 31, 2025 (Amount) | March 31, 2025 (%) | June 30, 2024 (Amount) | June 30, 2024 (%) | | :---------------------------------------- | :--------------------- | :---------------- | :---------------------- | :----------------- | :--------------------- | :---------------- | | Deposits and service fees | $4,968 | 25.1% | $5,137 | 26.3% | $5,281 | 27.2% | | Brokerage, advisory and fiduciary activities | 4,993 | 25.2% | 4,729 | 24.2% | 4,538 | 23.4% | | Change in cash surrender value of BOLI | 2,490 | 12.6% | 2,450 | 12.5% | 2,242 | 11.5% | | Cards and trade finance servicing fees | 1,804 | 9.1% | 1,392 | 7.1% | 1,331 | 6.9% | | Securities gains (losses), net | 1,779 | 9.0% | 64 | 0.3% | (117) | (0.6)% | | Loan-level derivative income | 3,204 | 16.2% | 1,508 | 7.7% | 2,357 | 12.1% | | Derivative losses, net | (1,852) | (9.4)% | — | —% | (44) | (0.2)% | | Other noninterest income | 2,392 | 12.2% | 4,245 | 21.9% | 3,643 | 18.7% | | **Total noninterest income** | **$19,778** | **100.0%** | **$19,525** | **100.0%** | **$19,420** | **100.0%** | - Securities gains in 2Q25 were primarily due to market valuation of trading securities, while derivative losses were linked to unrealized losses in TBA MBS derivative contracts[40](index=40&type=chunk)[42](index=42&type=chunk) - Other noninterest income for 2Q25 includes mortgage banking income of **$0.7 million** and net gains on sale of OREO properties[42](index=42&type=chunk) [Noninterest Expense (Exhibit 5)](index=18&type=section&id=Noninterest%20Expense%20(Exhibit%205)) Noninterest expense increased quarter-over-quarter, mainly due to higher salaries and employee benefits, professional services fees, and advertising expenses Noninterest Expense (in thousands) | Category | June 30, 2025 (Amount) | June 30, 2025 (%) | March 31, 2025 (Amount) | March 31, 2025 (%) | June 30, 2024 (Amount) | June 30, 2024 (%) | | :---------------------------------------- | :--------------------- | :---------------- | :---------------------- | :----------------- | :--------------------- | :---------------- | | Salaries and employee benefits | $36,036 | 48.4% | $33,347 | 46.6% | $33,857 | 46.2% | | Professional and other services fees | 13,549 | 18.2% | 14,682 | 20.5% | 12,110 | 16.5% | | Occupancy and equipment | 5,491 | 7.4% | 6,136 | 8.6% | 9,041 | 12.3% | | Telecommunications and data processing | 2,929 | 3.9% | 3,475 | 4.9% | 2,732 | 3.7% | | FDIC assessments and insurance | 2,896 | 3.9% | 3,236 | 4.5% | 2,772 | 3.8% | | Advertising expenses | 4,819 | 6.5% | 3,635 | 5.1% | 4,243 | 5.8% | | Loan-level derivative expense | 1,113 | 1.5% | 360 | 0.5% | 580 | 0.8% | | Other real estate owned and repossessed assets expense (income), net | 601 | 0.8% | 164 | 0.2% | (148) | (0.2)% | | Other operating expenses | 5,415 | 7.3% | 4,931 | 6.9% | 5,205 | 7.1% | | **Total noninterest expense** | **$74,400** | **100.0%** | **$71,554** | **100.0%** | **$73,302** | **100.0%** | - Salaries and employee benefits for 2Q25 include **$0.4 million** in expenses related to the Amerant Mortgage downsizing[46](index=46&type=chunk) - Other real estate owned and repossessed assets expense for 2Q25 includes **$1.3 million** of OREO valuation expense and net gains of approximately **$0.5 million** on sale of OREO properties[48](index=48&type=chunk) [Consolidated Balance Sheets (Exhibit 6)](index=19&type=section&id=Consolidated%20Balance%20Sheets%20(Exhibit%206)) The consolidated balance sheet shows an increase in total assets, primarily driven by growth in debt securities and loans held for investment, alongside an increase in total deposits and stockholders' equity Consolidated Balance Sheets (in thousands) | (in thousands, except share data) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | **Assets** | | | | | | | Cash and cash equivalents | $636,837 | $648,367 | $590,359 | $671,841 | $310,319 | | Securities | 1,970,888 | 1,761,678 | 1,497,925 | 1,542,544 | 1,547,864 | | Loans held for sale, at the lower of cost or fair value | — | 40,597 | — | 553,941 | 551,828 | | Mortgage loans held for sale, at fair value | 6,073 | 20,728 | 42,911 | 43,851 | 60,122 | | Loans held for investment, gross | 7,183,123 | 7,157,837 | 7,228,411 | 6,964,171 | 6,710,961 | | Less: Allowance for credit losses | 86,519 | 98,266 | 84,963 | 79,890 | 94,400 | | Loans held for investment, net | 7,096,604 | 7,059,571 | 7,143,448 | 6,884,281 | 6,616,561 | | Total assets | $10,334,678 | $10,169,688 | $9,901,734 | $10,353,127 | $9,747,738 | | **Liabilities and Stockholders' Equity** | | | | | | | Total deposits | 8,306,544 | 8,154,978 | 7,854,595 | 8,110,944 | 7,816,011 | | Advances from the Federal Home Loan Bank | 765,000 | 715,000 | 745,000 | 915,000 | 765,000 | | Senior notes | — | 59,922 | 59,843 | 59,764 | 59,685 | | Total liabilities | 9,410,392 | 9,263,425 | 9,011,267 | 9,450,239 | 9,013,396 | | Total stockholders' equity | 924,286 | 906,263 | 890,467 | 902,888 | 734,342 | | Total liabilities and stockholders' equity | $10,334,678 | $10,169,688 | $9,901,734 | $10,353,127 | $9,747,738 | - The Company redeemed all outstanding Senior Notes on April 1, 2025[55](index=55&type=chunk) - In 2Q25, the Company began participating in trading of MBS as part of its investment portfolio strategy, resulting in **$120.2 million** in trading securities[55](index=55&type=chunk) [Loan Portfolio Analysis (Exhibit 7)](index=20&type=section&id=Loan%20Portfolio%20Analysis%20(Exhibit%207)) Exhibit 7 details the Company's loan portfolio, categorizing loans by type, and provides a comprehensive overview of non-performing assets and credit quality indicators [Loans by Type - Held For Investment](index=20&type=section&id=Loans%20by%20Type%20-%20Held%20For%20Investment) The loan portfolio held for investment saw an increase in commercial real estate (non-owner occupied and land development) and single-family residential loans, while commercial loans decreased quarter-over-quarter Loans Held For Investment by Type (in thousands) | Loan Class | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Commercial real estate - Non-owner occupied | $1,773,377 | $1,641,210 | $1,678,473 | $1,688,308 | $1,714,088 | | Multi-family residential | 368,718 | 400,371 | 336,229 | 351,815 | 359,257 | | Land development and construction loans | 543,697 | 499,663 | 483,210 | 421,489 | 343,472 | | Single-family residential | 1,542,447 | 1,549,356 | 1,528,080 | 1,499,599 | 1,446,569 | | Owner occupied | 983,090 | 951,311 | 1,007,074 | 1,001,762 | 981,405 | | Commercial loans | 1,566,420 | 1,714,583 | 1,751,902 | 1,630,318 | 1,521,533 | | Loans to financial institutions and acceptances | 156,918 | 153,345 | 170,435 | 92,489 | 48,287 | | Consumer loans and overdrafts | 248,456 | 247,998 | 273,008 | 278,391 | 296,350 | | **Total loans** | **$7,183,123**| **$7,157,837** | **$7,228,411** | **$6,964,171** | **$6,710,961**| [Loans by Type - Held For Sale](index=21&type=section&id=Loans%20by%20Type%20-%20Held%20For%20Sale) Total loans held for sale significantly decreased quarter-over-quarter, primarily due to the completion of the Houston franchise sale in Q4 2024 Loans Held For Sale by Type (in thousands) | Loan Class | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Loans held for sale at the lower of cost or fair value | | | | | | | Real estate loans - Non-owner occupied | $— | $— | $— | $111,591 | $112,002 | | Real estate loans - Multi-family residential | — | — | — | — | 918 | | Real estate loans - Land development and construction loans | — | — | — | 35,020 | 29,923 | | Real estate loans - Single-family residential | — | — | — | 87,820 | 88,507 | | Real estate loans - Owner occupied | — | 40,597 | — | 221,774 | 220,718 | | Commercial loans | — | — | — | 87,866 | 90,353 | | Consumer loans | — | — | — | 9,870 | 9,407 | | **Total loans held for sale at the lower of cost or fair value** | **—** | **40,597** | **—** | **553,941** | **551,828** | | Mortgage loans held for sale at fair value | | | | | | | Land development and construction loans | 2,056 | 7,475 | 10,768 | 10,608 | 7,776 | | Single-family residential | 4,017 | 13,253 | 32,143 | 33,243 | 52,346 | | **Total mortgage loans held for sale at fair value** | **6,073** | **20,728** | **42,911** | **43,851** | **60,122** | | **Total loans held for sale** | **$6,073** | **$61,325** | **$42,911** | **$597,792** | **$611,950** | - Loans transferred from held for investment to held for sale in 2024 were a result of the Houston Transaction, which was completed in Q4 2024[57](index=57&type=chunk) [Non-Performing Assets](index=22&type=section&id=Non-Performing%20Assets) Total non-performing assets significantly decreased quarter-over-quarter, driven by a substantial reduction in non-accrual loans, particularly in commercial and single-family residential categories Non-Performing Assets (in thousands) | Category | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | **Non-Accrual Loans** | | | | | | | Real Estate Loans - Commercial real estate - Non-owner occupied | $1,022 | $— | $— | $1,916 | $— | | Real Estate Loans - Single-family residential | 7,421 | 15,048 | 8,140 | 13,452 | 3,726 | | Real Estate Loans - Owner occupied | 21,027 | 22,249 | 23,191 | 29,240 | 26,309 | | Commercial loans | 51,157 | 84,907 | 64,572 | 68,654 | 67,005 | | **Total Non-Accrual Loans** | **$81,293** | **$122,204** | **$100,022** | **$113,262** | **$97,050** | | **Past Due Accruing Loans** | | | | | | | Commercial | 1,192 | 122 | 2,033 | 104 | — | | **Total Past Due Accruing Loans** | **$1,192** | **$1,015** | **$4,079** | **$1,667** | **$3,902** | | **Total Non-Performing Loans** | **82,485** | **123,219** | **104,101** | **114,929** | **100,952** | | Other Real Estate Owned | 15,389 | 17,541 | 18,074 | 14,509 | 20,181 | | **Total Non-Performing Assets** | **$97,874** | **$140,760** | **$122,175** | **$129,438** | **$121,133** | [Loans by Credit Quality Indicators](index=23&type=section&id=Loans%20by%20Credit%20Quality%20Indicators) The Company's loans held for investment showed a decrease in total classified loans (Special Mention, Substandard, Doubtful) from the prior quarter, indicating an improvement in overall credit quality Loans Held For Investment by Credit Quality Indicators (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------- | :------------ | | **Loans held for investment** | | | | | Special Mention | $132,759 | $99,720 | $95,292 | | Substandard | 215,432 | 165,536 | 97,907 | | Doubtful | — | — | — | | **Total (1)** | **$348,191** | **$265,256** | **$193,199** | | **Loans held for sale at the lower of cost or fair value** | | | | | Owner occupied | — | 40,597 | — | | **Total loans held for sale** | **—** | **40,597** | **—** | | **Total** | **$348,191** | **$305,853** | **$193,199** | - There were no loans categorized as 'loss' as of the dates presented[62](index=62&type=chunk) [Deposits by Country of Domicile (Exhibit 8)](index=24&type=section&id=Deposits%20by%20Country%20of%20Domicile%20(Exhibit%208)) Total deposits increased quarter-over-quarter, with growth observed in both domestic and foreign deposits, particularly from Venezuela and other international sources Deposits by Country of Domicile (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Domestic | $5,707,272 | $5,592,575 | $5,278,289 | $5,553,336 | $5,281,946 | | Foreign: | | | | | | | Venezuela | 1,897,631 | 1,862,614 | 1,889,331 | 1,887,282 | 1,918,134 | | Others | 701,641 | 699,789 | 686,975 | 670,326 | 615,931 | | Total foreign | 2,599,272 | 2,562,403 | 2,576,306 | 2,557,608 | 2,534,065 | | **Total deposits** | **$8,306,544**| **$8,154,978** | **$7,854,595** | **$8,110,944** | **$7,816,011**| [Glossary of Terms and Definitions](index=25&type=section&id=Glossary%20of%20Terms%20and%20Definitions) This section provides definitions for key financial terms used throughout the earnings release, including various balance sheet items, profitability and capital ratios, and asset quality indicators, to ensure clarity and consistent understanding - Definitions are provided for terms such as Total gross loans, Core deposits, Assets under management and custody, Net interest margin (NIM), ROA, ROE, Total revenue, various capital ratios (Total capital, Tier 1, Tier 1 leverage, CET1, Tangible common equity), Loans to Deposits ratio, Non-performing assets/loans, Net charge-offs ratio, Efficiency ratio, and Cost of total deposits[68](index=68&type=chunk) - Core ROA, Core ROE, and Core efficiency ratio are defined as excluding the effect of non-routine items, as detailed in Exhibit 2[68](index=68&type=chunk)

Core Viewpoint - Amerant Bank has appointed Elliot Shafer as SVP, Head of Business Development to enhance its growth and market presence in Florida [1][2]. Group 1: Appointment and Role - Elliot Shafer will support Amerant's growth by identifying, evaluating, and pursuing business opportunities that align with the bank's strategic objectives [1][2]. - Shafer's responsibilities will include leading initiatives to expand Amerant Bank's market presence, developing networks, establishing partnerships, and promoting cross-selling activities [2][3]. Group 2: Background and Experience - Elliot Shafer has extensive experience in business development, previously serving as Senior Vice President, Market Director at Huntington National Bank [3]. - He has held leadership roles in middle market banking for TCF Bank and its predecessor companies, bringing a wealth of experience in commercial and business banking to Amerant [3]. Group 3: Company Overview - Amerant Bank is a prominent financial institution in Florida, serving clients for over 40 years and comprising subsidiaries such as Amerant Investments and Amerant Mortgage [4]. - The bank has been recognized as a Most Loved Workplace® by Best Practice Institute in 2022, 2023, and 2024, highlighting its commitment to community and client relationships [4].

Core Viewpoint - The Schall Law Firm is investigating Amerant Bancorp Inc. for potential violations of securities laws, particularly regarding misleading statements and undisclosed information that may have affected investors [1][2]. Financial Performance - Amerant Bancorp reported Q1 2025 financial results on April 23, 2025, with earnings per share significantly missing consensus estimates [2]. - The Chairman and CEO indicated that loan activity was flat quarter over quarter due to increased payoffs and paydowns offsetting new production [2]. - Following the earnings report, Amerant's shares dropped by over 13% the next day [2].

Financial Performance - Net income attributable to Amerant Bancorp Inc. for Q1 2025 was $11,958 thousand, compared to $10,568 thousand in Q1 2024, reflecting an increase of 13.2%[12] - The company reported comprehensive income of $24,490 thousand for Q1 2025, significantly higher than $5,480 thousand in Q1 2024[14] - Basic earnings per share for Q1 2025 was $0.28, a decrease from $0.32 in Q1 2024[14] - Net income for the three months ended March 31, 2025, was $11,958,000, an increase of 13.2% compared to $10,568,000 for the same period in 2024[17] - The efficiency ratio improved to 67.9% in the three months ended March 31, 2025, compared to 72.0% in the same period of 2024[194] Asset and Deposit Growth - Total assets increased to $10,169,688 thousand as of March 31, 2025, up from $9,901,734 thousand at December 31, 2024, representing a growth of 2.7%[11] - Total deposits grew to $8,154,978 thousand as of March 31, 2025, up from $7,854,595 thousand at December 31, 2024, marking a 3.8% increase[11] - Total interest-earning assets rose to $9,294,146 thousand in Q1 2025, up from $8,942,043 thousand in Q1 2024, representing an increase of about 3.9%[205] Income and Interest Metrics - Net interest income for Q1 2025 was $85,904 thousand, an increase of 10.4% compared to $77,968 thousand in Q1 2024[12] - Noninterest income increased to $19,525 thousand in Q1 2025, compared to $14,488 thousand in Q1 2024, a growth of 35.0%[12] - The net interest margin improved to 3.75% in Q1 2025 from 3.51% in Q1 2024, showing an enhancement of 24 basis points[207] - The cost of total deposits decreased to 2.60% in Q1 2025 from 3.00% in Q1 2024, reflecting a reduction of 40 basis points[207] Credit Losses and Provisions - Provision for credit losses rose to $18,446 thousand in Q1 2025, up from $12,400 thousand in Q1 2024, indicating a 48.5% increase[12] - The allowance for credit losses increased to $98,266 thousand as of March 31, 2025, up from $84,963 thousand at December 31, 2024[11] - The provision for credit losses on loans for the three months ended March 31, 2025, was $17.196 million, which included $13.9 million for specific reserves and $4.7 million for macroeconomic model adjustments[70] Loan Portfolio and Quality - Total loans held for investment decreased to $7.16 billion as of March 31, 2025, from $7.23 billion at December 31, 2024, representing a decline of approximately 1%[54] - Total past due loans increased to $103.71 million as of March 31, 2025, compared to $55.94 million at December 31, 2024, indicating a significant rise in delinquency[59] - Nonaccrual loans totaled $89.99 million as of March 31, 2025, compared to $72.72 million at December 31, 2024, reflecting an increase of approximately 23.7%[60] - The Allowance for Credit Losses (ACL) increased by $13.3 million, or 15.7%, to $98.266 million as of March 31, 2025, compared to December 31, 2024[68] Strategic Initiatives and Changes - The company is in the process of dissolving its Cayman Bank subsidiary, expected to be completed in 2025[21] - In April 2025, the company announced a strategic transition to focus on in-footprint mortgage lending, planning to reduce FTE count from 77 to 20 within 120 days[156] - The company opened a new regional headquarters and banking center in West Palm Beach in April 2025, with additional locations planned in Miami Beach and downtown Tampa[155] Regulatory and Economic Environment - The company is subject to extensive regulation, which could limit activities and adversely affect earnings, alongside potential legal and regulatory changes impacting financial institutions[147] - The unemployment rate has slightly increased to just above 4%, with economists anticipating a potential recession in the latter half of 2025 due to tariff impacts[159][160] - The Federal Reserve has maintained steady interest rates despite inflation remaining above its 2% target, contributing to economic uncertainty[158]

Group 1 - The credit quality outlook for US banks has worsened following President Trump's tariffs, which have led to increased market volatility and economic uncertainty [2] - Several US banks have responded to the changing economic environment by increasing their credit loss reserves [2]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Amerant Bancorp Inc. and its officers or directors, following disappointing financial results for Q1 2025 that led to a significant drop in stock price [1][3]. Financial Performance - Amerant Bancorp reported GAAP earnings per share of $0.28 for Q1 2025, which was $0.12 below consensus estimates [3]. - The company's loans remained relatively flat quarter over quarter due to increased payoffs and paydowns offsetting new production [3]. - Following the earnings announcement, Amerant's stock price decreased by $2.55, or 13.09%, closing at $16.93 per share on April 24, 2025 [3].

Financial Data and Key Metrics Changes - Total assets increased to $10.2 billion from $9.9 billion in the previous quarter [9] - Total deposits rose by $300 million to $8.2 billion compared to $7.9 billion in the fourth quarter [11] - Diluted income per share decreased to $0.28 from $0.40 in the fourth quarter [12] - Net interest income was $85.9 million, down from $87.6 million in the previous quarter [14] - Provision for credit losses increased to $18.4 million from $9.9 million in the fourth quarter [15] - Efficiency ratio improved to 67.87% from 74.91% in the previous quarter [24] Business Line Data and Key Metrics Changes - Total gross loans decreased by $52 million to $7.2 billion, primarily due to increased prepayments [11] - Non-interest income was $19.5 million, including a net gain of $2.8 million from a loan sale [16] - Assets under management increased by $42 million to $2.93 billion [18] Market Data and Key Metrics Changes - The ratio of non-interest-bearing deposits to total deposits increased to 20.4% from 19.2% [23] - ROA and ROE decreased to 0.48% and 5.02% respectively, compared to 0.67% and 7.38% in the previous quarter [24] Company Strategy and Development Direction - The company is transitioning from a national mortgage business to a Florida-focused model to reduce capital requirements [21] - Strategic additions to the leadership team emphasize a robust risk management framework [39][40] - The company plans to open new regional offices in key Florida markets to support growth initiatives [53][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges but highlighted strong deposit growth and net interest income performance [7][8] - The company expects loan production growth in the 10% to 15% range by year-end, despite macroeconomic uncertainties [35] - Management remains focused on delivering improved growth and value to shareholders amid macroeconomic challenges [57] Other Important Information - The company paid a quarterly cash dividend of $0.09 per common share [18] - A strategic decision was made to reduce operating costs in the mortgage business, expecting savings of approximately $2.5 million per quarter starting in Q3 [22] Q&A Session Summary Question: Loan growth outlook and impacts of macro volatility - Management indicated a prudent approach to loan growth due to uncertainty, but remains optimistic about demand [61][62] Question: Asset quality and charge-off expectations - Charge-off levels are expected to rise slightly in Q2 but normalize thereafter, with a target of 1% ROA in the second half of the year [70][71] Question: Mortgage expense outlook and impact on bottom line - Expected expense savings from the mortgage business will drop to the bottom line [77] Question: Credit quality and special mention loans - Management noted that special mention loans increased due to updated financial information and proactive risk management [85][88] Question: Buyback strategy and appetite - The company has been active in buybacks under a 10b5-1 plan, with a focus on avoiding dilution [95][98] Question: Margin outlook and loan production yields - New loan production yields are expected to be in the range of 6.25% to 6.50%, with ongoing management of deposit costs [105][108]

Financial Data and Key Metrics Changes - Total assets increased to $10.2 billion from $9.9 billion in the previous quarter [6] - Total investments rose to $1.76 billion from $1.5 billion in the fourth quarter [7] - Total gross loans decreased by $52 million to $7.2 billion, primarily due to increased prepayments [7] - Total deposits increased by $300 million to $8.2 billion, driven by growth in core deposits [8] - Diluted income per share for the first quarter was $0.28, down from $0.40 in the fourth quarter, mainly due to higher provision expenses [9] - Net interest margin remained flat at 3.75%, better than projected [9][10] - Provision for credit losses increased to $18.4 million from $9.9 million in the previous quarter [11] Business Line Data and Key Metrics Changes - The mortgage business is transitioning to focus on Florida, reducing operating costs and variable expenses [14][15] - Non-interest income was $19.5 million, including a net gain of $2.8 million from a previously charged-off asset [12] - The efficiency ratio improved to 67.87% from 74.91% in the previous quarter [17] Market Data and Key Metrics Changes - The ratio of non-interest bearing deposits to total deposits increased to 20.4% from 19.2% [17] - Assets under management increased by $42 million to $2.93 billion, despite market volatility [13] Company Strategy and Development Direction - The company is focusing on building out its infrastructure to support regional banking and intends to continue this direction [6] - Strategic changes in the mortgage business aim to reduce costs and improve efficiency [14][15] - The company plans to open new banking centers in key markets, including Miami Beach and Downtown Tampa [36][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges but highlighted outperformance in net interest income and deposit growth [5] - The company expects loan production growth in the range of 10% to 15% by year-end, despite macroeconomic uncertainties [26] - Management remains committed to a prudent approach in capital management, balancing growth with buybacks and dividends [27] Other Important Information - The company redeemed $60 million in senior notes due this year [13] - A quarterly cash dividend of $0.09 per share was paid and approved for the next quarter [12] Q&A Session Summary Question: Loan growth outlook and impact of macro volatility - Management noted a pullback from commercial customers but remains optimistic about loan demand in the second half of the year [43][44] Question: Asset quality and charge-off expectations - Charge-off levels are expected to rise slightly in the second quarter but normalize thereafter [50][51] Question: Mortgage expense outlook and impact on bottom line - Expected expense savings from the mortgage business will drop to the bottom line [58] Question: Credit quality and special mention loans - Management indicated that special mention loans were primarily due to updated financial information and are being closely monitored [63][64] Question: Buyback strategy and appetite - The company has been active in buybacks under a 10b5-1 plan, aiming to avoid dilution [72][74] Question: Margin outlook and loan production yields - New loan production yields are expected to be in the range of 6.25% to 6.50% due to competitive pressures [79][81]

Financial Data and Key Metrics Changes - Total assets increased to $10.2 billion from $9.9 billion in the previous quarter [7] - Total investments rose to $1.76 billion from $1.5 billion in the fourth quarter [8] - Total gross loans decreased by $52 million to $7.2 billion, primarily due to increased prepayments [8] - Total deposits increased by $300 million to $8.2 billion, driven by growth in core deposits [9] - Diluted income per share for the first quarter was $0.28, down from $0.40 in the fourth quarter, mainly due to higher provision expenses [10] - Net interest margin remained flat at 3.75%, better than projected [10][11] - Provision for credit losses increased to $18.4 million from $9.9 million in the previous quarter [12] Business Line Data and Key Metrics Changes - The mortgage business is transitioning to focus on Florida, reducing operating costs and variable expenses [15][16] - Non-interest income was $19.5 million, including a net gain of $2.8 million from a previously charged-off asset [13] - The efficiency ratio improved to 67.87% from 74.91% in the previous quarter [18] Market Data and Key Metrics Changes - The ratio of non-interest bearing deposits to total deposits increased to 20.4% from 19.2% [18] - The allowance for credit losses to total loans increased to 1.37% from 1.18% [19] Company Strategy and Development Direction - The company is focusing on building out its infrastructure to support regional banking and intends to continue this direction [7] - A strategic change in the mortgage business aims to reduce costs and improve efficiency, with expectations of lower non-interest income [15][16] - The company plans to expand its presence in key markets, including new banking centers in West Palm Beach and Miami Beach [37][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges but highlighted outperformance in net interest income and deposit growth [6] - The company expects continued growth in core deposits and a cautious approach to loan production due to macroeconomic uncertainties [24][26] - Management remains committed to a prudent capital management approach, balancing growth with buybacks and dividends [28] Other Important Information - The company redeemed $60 million in senior notes due this year [14] - Recent leadership additions are aimed at strengthening risk management and business development [29][34] Q&A Session Summary Question: Loan growth outlook and impact of macro volatility - Management noted a pullback from commercial customers but remains optimistic about loan demand in the second half of the year [44][45] Question: Asset quality and charge-off expectations - Charge-off levels are expected to rise slightly in the second quarter but normalize thereafter [52] Question: Mortgage expense outlook and reinvestment - Expected expense savings from the mortgage business will drop to the bottom line [59] Question: Impact of macro uncertainty on initiatives - Management confirmed commitment to complete planned branch openings despite macro uncertainties [60][61] Question: Increase in special mentions and credit quality - Management indicated that special mentions are proactive measures and do not necessarily indicate problem assets [66][67] Question: Buyback strategy and appetite - The company has been active in buybacks under a 10b5-1 plan, aiming to avoid dilution [72][74] Question: Margin outlook and loan production yields - New loan production yields are expected to be between 6.25% and 6.50% due to competitive pressures [80][82]

Core Insights - Amerant Bancorp Inc. reported revenue of $105.43 million for Q1 2025, a 14% year-over-year increase, but EPS decreased to $0.24 from $0.32 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $102.39 million by 2.97%, while the EPS fell short of the consensus estimate of $0.40 by 40% [1] Financial Performance Metrics - Efficiency Ratio was reported at 67.9%, better than the estimated 69.2% [4] - Net interest margin stood at 3.8%, slightly above the average estimate of 3.7% [4] - Net charge-offs as a percentage of average total loans held for investment were 0.2%, lower than the estimated 0.4% [4] - Average balances of total interest-earning assets were $9.29 billion, compared to the estimated $9.26 billion [4] - Noninterest income was reported at $19.53 million, exceeding the average estimate of $18 million [4] - Net interest income reached $85.90 million, surpassing the average estimate of $84.39 million [4] Stock Performance - Amerant Bancorp's shares have returned -10.3% over the past month, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]