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    AMTB
    Earnings call· Jun 2026(Q2 FY26)

    Amerant Bancorp Inc. AMTB

    Jul 24, 2026 Source

    Executive summary

    Amerant Bancorp Q2 FY26 — Strong Deposit Growth and Improved Profitability

    Amerant Bancorp delivered a strong second quarter, marked by significant deposit growth, particularly from international sources, which fueled higher interest-earning assets and improved net interest income. The company continued to execute on its strategic priorities, including credit transformation and operational efficiency, leading to enhanced profitability and a robust capital position. While net interest margin saw a slight compression due to competitive loan yields, management remains focused on disciplined growth and expense management to achieve its ROA target.

    Highlights

    5

    • Total deposits increased by $416 million to $8.4 billion, primarily driven by strong international deposit growth.

    • Diluted earnings per share increased to $0.53 in Q2 FY26 from $0.44 in Q1 FY26.

    • Net interest income rose by $2.3 million to $82.6 million, driven by higher interest-earning assets.

    • Non-performing loans declined by $5 million or 2.8% to $271 million, reflecting credit optimization efforts.

    • CET1 ratio remained strong at 11.94%, up from 11.84% in the prior quarter.

    Concerns

    3

    • Net interest margin modestly declined to 3.52% from 3.55% in Q1 FY26, primarily due to lower loan yields.

    • Non-interest expense increased by $2 million or 2.9% to $68.9 million, including $2.9 million in variable compensation and $1.3 million from a terminated sports partnership.

    • Assets under management decreased by $53 million to $3.4 billion, primarily due to the departure of a large trust relationship.

    Guidance & targets

    8
    CategoryTargetConfidence
    Total loans
    approximately $7.3 billion
    high materiality
    High
    Total deposits
    approximately $9.1 billion
    high materiality
    High
    Net interest margin (NIM)
    approximately 3.50%
    high materiality
    Medium
    Non-interest expense
    in line with 2Q
    medium materiality
    High
    Non-interest expense
    range of $66 to $67 million
    medium materiality
    High
    Efficiency ratio
    approximately 60%
    high materiality
    Medium
    Return on assets (ROA)
    1%
    high materiality
    Medium
    Gross charge-offs
    25 to 30 basis points
    medium materiality
    Medium

    Operational metrics

    40
    Total assets
    $10.3Bup from $9.9B in Q1 FY26
    Q2 FY26

    Increased from $9.9 billion as of the end of the first quarter, primarily driven by higher deposit balances.

    Cash and cash equivalents
    $301Mup $112M from $189M in Q1 FY26
    Q2 FY26

    Reflecting higher interest earning deposit balances and overall balance sheet liquidity.

    Total investment securities
    $2.6Bup $178M from $2.4B in Q1 FY26
    Q2 FY26

    Continue to grow the investment portfolio as part of our liquidity management, due to the growth of our international deposits.

    Total gross loans
    $6.9Bup $112M from $6.8B in Q1 FY26
    Q2 FY26

    Growth was driven primarily by production in C&I as well as residential mortgages, partially offset by elevated commercial loan prepayments, strategic loan sales, and continued exits aligned with our credit optimization strategy.

    Total deposits
    $8.4Bup $416M from $7.9B in Q1 FY26
    Q2 FY26

    Primarily driven by strong growth in international deposits.

    Assets under management (AUM)
    $3.4Bdown $53M
    Q2 FY26

    Primarily driven by the departure of a large trust relationship partially offset by increased market valuations. This relationship did not represent a significant contribution to fee income.

    Diluted EPS
    $0.53up from $0.44 in Q1 FY26
    Q2 FY26

    Diluted earnings per share for the second quarter was 53 cents compared to 44 cents in the first quarter.

    Net interest income (NII)
    $82.6Mup $2.3M from $80.3M in Q1 FY26
    Q2 FY26

    The increase was primarily driven by higher average interest earning asset value including growth in the loan and investment securities portfolios partially offset by lower loan yields.

    Provision for credit losses
    $4.8Mdown from $7.8M in Q1 FY26
    Q2 FY26

    Reflecting lower provision needs for specific reserves and higher recoveries, offset by need for loan portfolio growth and adjustments to account for macroeconomic conditions.

    Non-interest income
    $18.2Mup $0.8M from $17.4M
    Q2 FY26

    Includes an increase of approximately $500,000 in deposit and service fees and $200,000 in brokerage, advisory, and fiduciary fees.

    Deposit and service fees
    $0.5Mincrease
    Q2 FY26

    Increase of approximately $500,000 in deposit and service fees.

    Brokerage, advisory, and fiduciary fees
    $0.2Mincrease
    Q2 FY26

    Increase of approximately $200,000 in brokerage, advisory, and fiduciary fees.

    Non-interest expense
    $68.9Mup $2M or 2.9% from $66.9M in Q1 FY26
    Q2 FY26

    Includes an increase of $2.9 million in variable compensation, an increase of $1.8 million in less savings related to third-party vendor fees this quarter, and an increase of $1.3 million primarily related to the last portion of a sports partnership agreement that was terminated.

    Pre-tax pre-provision net revenue
    $31.9Mup from $30.7M in Q1 FY26
    Q2 FY26

    Reflecting higher net interest income and non-interest income, partially offset by the increase in non-interest expense.

    Return on assets (ROA)
    0.84%up from 0.73% in Q1 FY26
    Q2 FY26

    These improvements were primarily driven by higher net income and continued operating disciplines.

    Return on equity (ROE)
    9.23%up from 7.63% in Q1 FY26
    Q2 FY26

    These improvements were primarily driven by higher net income and continued operating disciplines.

    Share repurchases
    $16M
    Q2 FY26

    Partially offset by $16 million in share repurchases and $3.6 million in shareholder dividends.

    Shares repurchased
    690,000
    Q2 FY26

    During the second quarter, we repurchased 690,000 shares at a weighted average price of $23.29 per share.

    Tangible book value per share
    $22.78
    Q2 FY26

    Compared to tangible book value of $22.78 as of June 30, 2026.

    Total deposits increase
    $460M5.2% increase
    Q2 FY26

    Total deposits for the quarter were $8.4 billion, up $460 million, or 5.2%, compared to $7.9 billion in the previous quarter.

    Broker deposits
    $498Mdecrease of $50M from $548M in Q1 FY26
    Q2 FY26

    Broker deposits totaled $498 million, a decrease of $50 million, compared to $548 million in the first quarter.

    Core deposits
    $553M9.4% increase
    Q2 FY26

    Core deposits increased by $553 million, or 9.4%, supported by strong growth in non-interest-bearing and lower-cost international deposits.

    Total loans increase
    $112M1.7% increase
    Q2 FY26

    Total loans were $6.9 billion, up $112 million, or 1.7%, compared to $6.8 billion in the first quarter.

    Cost of total deposits
    2.21%down from 2.31% in Q1 FY26
    Q2 FY26

    As a result, cost of total deposits declined to 2.21% from 2.31% in the prior quarter.

    Cost of funds
    2.38%down from 2.47% in Q1 FY26
    Q2 FY26

    And cost of funds declined to 2.38% from 2.47%.

    Nonperforming loans (NPLs)
    $271Mdown $5M or 2.8%
    Q2 FY26

    Nonperforming loans were down $5 million or 2.8%, to $271 million or 1.7% of total assets.

    NPLs post-quarter end
    $162M
    post Q2 FY26

    Subsequent to quarter end and a $9 million New York CRE loan was paid off, bringing NPLs further down to $162 million.

    Loan payoffs (classified loans)
    $24M
    Q2 FY26

    With loan payoffs totaling $24 million and loans sold totaling approximately $40 million during the period.

    Loans sold (classified loans)
    $40M
    Q2 FY26

    With loan payoffs totaling $24 million and loans sold totaling approximately $40 million during the period.

    Provision for credit losses (specific reserve allocation)
    $2.2Mnet increase
    Q2 FY26

    The provision was driven by a $2.2 million net increase in specific reserve allocation.

    Provision for credit losses (charge-offs)
    $0.8Mrequirements
    Q2 FY26

    $0.8 million requirements for charge-offs.

    Provision for credit losses (loan growth)
    $0.9Mdue to
    Q2 FY26

    $0.9 million due to loan growth.

    Provision for credit losses (macroeconomic factors)
    $1.9Mattributable to changes
    Q2 FY26

    And $1.9 million mainly attributable to changes in macroeconomic factors.

    Provision for credit losses (released from contingencies)
    $1Mreleased
    Q2 FY26

    This was offset by $1 million released and reserved for contingencies as lines were funded.

    Gross charge-offs
    $5.5M
    Q2 FY26

    During the second quarter of 2026, gross charge-offs totaled $5.5 million composed mainly of two commercial loans.

    Recoveries
    $4M
    Q2 FY26

    The remaining charge-offs were related to indirect consumer loans and smaller commercial and consumer loans. These charge-offs were offset by $4 million in recovery.

    Venezuelan deposits increase
    $500Mfrom Q1 FY26
    Q2 FY26

    Venezuelan deposits increasing close to $500 million from the first quarter and contributing significantly to the total international deposit growth.

    Loan transaction sweet spot
    $30M
    current

    The sweet spot for Amerant transactions, typically close to the $30 million. That would be kind of the max that we're trying to keep our sweet spot.

    Loan transaction max
    $35M
    current

    So we are doing just the $30 or $35 million in very specific case whenever there is a top tier customer or when there is a very solid and stable type of property or project.

    Buyback authorization remaining
    $6M
    current

    We still believe that our buyback which I believe we have approximately $6 million left.

    Industry KPIs

    13
    MetricValueDetails
    Loans$6.9BUSD
    Deposits$8.4BUSD
    Rotce ROE9.23%%
    Cet1 ratio11.94%%
    Capital returns$16MUSD
    Fee income lines$18.2MUSD
    Allowance reserves1.27%%
    Net interest income$82.6MUSD
    Net interest margin3.52%%
    Net charge offs npls2.8%%
    Total operating expenses$68.9MUSD
    Provision for credit losses$4.8MUSD
    Efficiency ratio operating leverage68.37%%

    Risks & headwinds

    5
    Competitive loan origination spreadsOngoing

    Spreads for high-quality assets are tighter, making it challenging to expand NIM despite lower funding costs.

    Mitigation: Focus on disciplined growth, granular C&I production, and selective residential mortgages within a revamped risk appetite.

    Elevated commercial loan prepayments and strategic loan salesQ2 FY26

    Partially offset loan growth in Q2 FY26.

    Mitigation: Part of credit optimization strategy to exit select exposures and criticized credits.

    Departure of large trust relationshipQ2 FY26

    Assets under management decreased $53 million to $3.4 billion.

    Mitigation: Wealth management business remains an important opportunity to grow fee income over time through relationship-first model.

    One-time expenses impacting non-interest expenseQ2 FY26

    Non-interest expense up $2 million, including $2.9 million in variable compensation and $1.3 million from a terminated sports partnership.

    Mitigation: Expect expenses to decline to $66-$67 million in Q4 FY26 as cost-saving initiatives materialize.

    CRE portfolio recompositionRemainder of FY26

    Some NPLs still in the CRE portfolio, muting overall CRE growth despite a strong pipeline.

    Mitigation: Efforts to reduce loan balances in this bucket, with expected roll-down by year-end.

    What to watch in Q3 FY26

    5

    Total loans growth

    Q4 FY26
    Current$6.9B (up $112M QoQ)
    TargetApproximately $7.3B

    Why it matters

    Indicates successful execution of disciplined loan growth strategy and asset redeployment of low-cost deposits.

    We expect total loans to reach approximately $7.3 billion by the fourth quarter of 2026.

    Q&A highlights

    6

    How will incremental deposit growth be used for funding remix, and what is the expected total asset size by year-end, especially regarding the $10 billion threshold?

    New low-cost deposits are primarily used to run off high-cost deposits and fund high-quality assets. Excess liquidity will also contribute to NIM. The company expects to be over $10 billion in assets by year-end '26, with related investments already factored into the run rate.

    “we do expect to use a significant portion being redeployed into high quality assets and boarded into our balance sheet. But we're also going to take the opportunity to pay off maturing wholesalers funds and also any excess liquidity due to the low cost of these funds, any excess liquidity, even if placed in yielding cash accounts, we still see that we can get a contribution to NIM.”

    asked by Woody Lay · answered by Sharymar Calderon

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Priorities and Progress

    Carlos Iafigliola outlined four key strategic initiatives: transforming credit, operational efficiency, relationship first, and growing the bank. Progress in Q2 included revising credit policies and procedures, completing loan origination stage revamp, identifying multiple AI use cases for productivity, strengthening CRM tracking and referral discipline, and prioritizing loan growth in Florida, focusing on C&I and select residential mortgages. These initiatives are aimed at stabilizing the business, strengthening the foundation, and positioning the company for disciplined, sustainable growth.

    02

    Deposit Growth and Funding Strategy

    Total deposits grew by $416 million to $8.4 billion, largely driven by a nearly $500 million increase in Venezuelan deposits from Q1. These low-cost, non-interest-bearing international deposits are being strategically used to run off high-cost deposits and fund domestic loan growth. Management emphasized that these are operating deposits tied to essential industries, supported by existing compliance frameworks, and contribute to a significant recomposition of the depository base.

    03

    Credit Quality Improvement

    The company reported significant progress in credit optimization efforts. Non-performing loans declined by $5 million or 2.8% to $271 million, representing 1.7% of total assets. Classified loans and special mention loans also declined during the quarter. This improvement was attributed to disciplined monitoring, timely downgrades, and active resolution through payoffs, paydowns, and loan sales, including a $9 million New York CRE loan paid off subsequent to quarter-end, further reducing NPLs to $162 million.

    04

    Net Interest Income and Margin Dynamics

    Net interest income increased by $2.3 million to $82.6 million, primarily due to higher average interest-earning asset balances, including growth in loan and investment securities portfolios. However, the net interest margin slightly compressed to 3.52% from 3.55% in Q1. This modest decline reflected lower loan yields, largely offset by a lower cost of funds and continued growth in lower-cost international deposits, with their current cost rate under 1%.

    05

    Expense Management and Efficiency

    Non-interest expense increased by $2 million or 2.9% to $68.9 million. This increase included $2.9 million in variable compensation, $1.8 million in less savings related to third-party vendor fees, and $1.3 million from a terminated sports partnership. Despite this, the efficiency ratio improved slightly to 68.37%. Management expects expenses to decline to $66-$67 million in Q4 FY26 as cost-saving initiatives materialize, aiming for an efficiency ratio of approximately 60%.

    06

    Capital Strength and Shareholder Returns

    Amerant maintained a strong CET1 ratio of 11.94%, up from 11.84% in the prior quarter, driven by lower risk-weighted assets and higher net income. The company repurchased 690,000 shares for $16 million at a weighted average price of $23.29 per share and declared a quarterly dividend of $0.09 per share. Management reiterated its commitment to returning capital to shareholders through buybacks and dividends, noting approximately $6 million remaining in the current buyback authorization.

    AI-generated summary of the company’s earnings call. Not investment advice.