Breaking Down Amerant Bancorp Inc. (AMTB) Financial Health: Key Insights for Investors

You're looking at Amerant Bancorp Inc. (AMTB) after their Q3 2025 report and the numbers defintely tell a story of two banks: one is growing, the other is struggling with credit quality. On the surface, the core franchise is holding up, with total assets hitting a robust $10.4 billion and the Net Interest Margin (NIM)-which is how efficiently they turn interest-earning assets into profit-improving to a strong 3.92%. But, the real pressure point is asset quality; non-performing assets spiked to nearly $140 million, a jump that forced management to record a higher provision for credit losses, ultimately driving net income down to just $14.8 million, or $0.35 per diluted share. That's a significant miss against consensus, so you need to look past the top-line asset growth and focus on the immediate action plan: can they execute on reducing those problem loans and will the planned share buybacks be enough to support the stock while they fix the balance sheet?

Revenue Analysis

You need a clear picture of where Amerant Bancorp Inc. (AMTB) makes its money, and the takeaway is simple: the bank is a classic interest-driven model, but its efficiency is improving, even with slower top-line growth. For the full fiscal year 2025, the consensus revenue forecast sits around $436.64 million, reflecting a projected annual revenue expansion of approximately 7.7%.

This growth rate, while solid, actually lags the broader US market average, but the quality of the bank's core earnings is the defintely more interesting story. We need to look closely at the two main engines: Net Interest Income and Non-interest Income.

Breakdown of Primary Revenue Sources

Amerant Bancorp Inc.'s revenue streams are overwhelmingly dominated by Net Interest Income (NII), which is the difference between what the bank earns on loans and investments and what it pays out on deposits and borrowings. This is the core of any traditional bank's business model. Non-interest income, which includes fees from wealth management, service charges, and other transactional activities, plays a smaller but important role.

Looking at the most recent data from the third quarter of 2025 (Q3 2025), you can see the clear segment contribution. Total revenue for the quarter was $111.44 million. Here's the quick math on the breakdown:

The bank is heavily reliant on its loan portfolio and balance sheet management. Any sustained pressure on the Net Interest Margin (NIM)-the key profitability metric for a bank-will directly impact over four-fifths of the company's revenue.

Year-over-Year Revenue Growth and Trends

The near-term trend shows a healthy acceleration from the previous year. Amerant Bancorp Inc. reported Q3 2025 revenue of $111.44 million, which is a 9.47% increase compared to the $101.8 million in revenue from the same quarter in 2024. This quarterly jump is a good sign, especially following a strong Q2 2025 revenue of $110.26 million. Still, the historical context is important.

• Q3 2025 revenue grew 9.47% year-over-year.
• Annual revenue is forecast to expand at 7.7% per year.
• The bank has reversed a five-year history of annual earnings declines.

The focus has shifted from aggressive top-line growth to improving profitability and efficiency, which is a mature strategy. If you want to dive deeper into who is betting on this turnaround, you should read Exploring Amerant Bancorp Inc. (AMTB) Investor Profile: Who's Buying and Why?

Analysis of Significant Revenue Changes

The most significant change isn't just the dollar amount of revenue, but the quality of that interest-driven income. The Net Interest Margin (NIM) has been on a positive trajectory, improving to 3.92% in Q3 2025, up from 3.81% in Q2 2025. This is a critical sign of better asset-liability management-they are earning more on their loans relative to what they are paying on deposits. That's efficiency in action.

The non-interest income side is more volatile. While Q2 2025 non-interest income was $19.8 million, it dropped to an estimated $17.24 million in Q3 2025. This segment is often subject to fluctuations from non-routine items, like the $2.8 million non-routine item Amerant Bancorp Inc. reported in Q1 2025 non-interest income. The key action here is watching if the bank can stabilize and grow its fee-based services to diversify away from its heavy reliance on NII.

Profitability Metrics

You're looking at Amerant Bancorp Inc. (AMTB)'s profitability, and the key takeaway is a mixed picture: its core lending margin is strong and improving, but its operational costs and credit provisions are still eating into the final net profit. We are seeing a clear trade-off as management prioritizes asset quality over pure growth, and that choice is reflected directly in the margins.

For a bank, we look at three main profitability metrics. First, the Net Interest Margin (NIM) is your true gross profit-what you earn on loans versus what you pay on deposits. Second, Pre-Provision Net Revenue (PPNR) is your operating profit before setting aside money for bad loans (provision for credit losses). Third, Net Income is the final net profit after all expenses and taxes.

Here's the quick math on Amerant Bancorp Inc.'s core performance through the first three quarters of 2025:

• Gross Profit Margin (NIM): The Net Interest Margin (NIM) has been on a positive trend, moving from 3.75% in Q1 2025 to 3.81% in Q2 2025, and then hitting 3.92% in Q3 2025. This is defintely a bright spot, showing the company is effectively managing its loan yields and deposit costs.
• Operating Profit Margin (PPNR-to-Revenue): This margin, which measures operational efficiency, has been less consistent. It peaked at approximately 32.57% in Q2 2025, but dropped to about 30.13% in Q3 2025, largely due to higher-than-expected expenses.
• Net Profit Margin (Net Income-to-Revenue): The bottom line has been volatile. Net Profit Margin swung from 11.38% in Q1 2025, up to a strong 20.87% in Q2 2025, before settling at 13.27% in Q3 2025. The Q3 decline was directly tied to a significant increase in the provision for credit losses.

The trend shows an improving core lending business (NIM rising), but the final profit is being heavily influenced by credit risk and operating expenses. You can dive deeper into the shareholder base by Exploring Amerant Bancorp Inc. (AMTB) Investor Profile: Who's Buying and Why?

Operational Efficiency and Industry Benchmarks

Operational efficiency is where Amerant Bancorp Inc. faces its biggest headwind right now. Efficiency is measured by the Efficiency Ratio (Non-interest Expense as a percentage of Total Revenue); lower is better.

The company's efficiency ratio has been stubbornly high: 67.9% in Q1 2025, improving slightly to 67.5% in Q2 2025, but then worsening to 69.84% in Q3 2025. This means nearly 70 cents of every dollar of revenue goes toward non-interest expenses like salaries and technology. For comparison, the aggregate efficiency ratio for all FDIC-insured institutions was notably lower at 56.2% in Q1 2025. The company is implementing expense reduction initiatives to save an estimated $2 million to $3 million per quarter in 2026, which is a clear action plan to address this gap.

When you look at the industry averages, Amerant Bancorp Inc. is a clear outlier on efficiency and overall returns, but competitive on its core lending margin. Here is a comparison of key profitability ratios for the most recent 2025 data:

What this estimate hides is the impact of credit risk. The jump in the provision for credit losses to $14.6 million in Q3 2025, up from $9.9 million in Q4 2024, is the main reason net income fell despite a strong NIM and improving core deposit base. Management is proactively addressing asset quality, which is the right move, but it will continue to pressure net profit until non-performing assets-which rose to $140 million in Q3 2025-are reduced. The focus is on fixing the balance sheet, so expect short-term profit volatility.

Your next step: Review the company's Q4 2025 expense guidance and non-performing loan resolution updates to gauge if the efficiency and credit provision pressures are truly peaking.

Debt vs. Equity Structure

You need to know how Amerant Bancorp Inc. (AMTB) is funding its growth, and the data from the 2025 fiscal year tells a clear story of strategic balance, leaning more on secured funding than its regional peers. The key takeaway is that while AMTB's leverage is higher than the regional bank average, its recent capital actions show a deliberate focus on optimizing its debt structure and returning capital to shareholders.

As of the third quarter of 2025, Amerant Bancorp Inc.'s total stockholders' equity stood at $944.9 million. This equity base, which is the shareholders' stake, supports total assets of approximately $10.4 billion. For a bank, the debt-to-equity (D/E) ratio is a crucial measure of financial leverage, showing how much of its operations are funded by debt versus shareholder capital. It's a key indicator of risk.

Amerant Bancorp Inc.'s D/E ratio for the period ending November 2025 is approximately 1.14. Here's the quick math: for every dollar of shareholder equity, the company uses about $1.14 in debt financing. This is an important number, but context is everything. The average D/E ratio for US Regional Banks as of November 2025 is significantly lower, around 0.5. This suggests AMTB is more leveraged than the typical regional bank. Still, a D/E ratio of 1.5 or lower is generally considered healthy for most companies, and for a major financial institution like Bank of America, the ratio was 1.169 in the first quarter of 2025.

The company's debt profile is dynamic, reflecting a proactive approach to managing interest rate risk. Their debt financing is heavily weighted toward secured and managed borrowings:

• FHLB Advances: As of Q3 2025, total advances from the Federal Home Loan Bank (FHLB)-a common source of secured, short-term funding for banks-were $831.7 million.
• Refinancing Action: In Q3 2025, AMTB restructured $210 million of fixed-rate FHLB advances, securing lower interest rates and improving their cost of funding.
• Senior Notes Redemption: The company demonstrated a commitment to reducing long-term debt by redeeming all outstanding Senior Notes on April 1, 2025.

The balance between debt and equity funding is also reflected in their capital allocation. While they use debt for operational liquidity and asset growth, they are also actively managing their equity. The Common Equity Tier 1 (CET1) ratio, a key regulatory measure of a bank's capital strength, stood at a solid 11.54% in Q3 2025. This is a strong buffer. Plus, the company has been returning capital to shareholders, repurchasing $20.0 million of Class A common stock year-to-date in 2025. You can defintely see a dual strategy here: optimize the cost of debt while rewarding shareholders through buybacks, which signals management's confidence in the stock's valuation.

The higher D/E ratio compared to the regional average is a risk to monitor, but the proactive debt management-like the FHLB restructuring and Senior Notes redemption-shows a hands-on approach to mitigating that risk. The focus is on asset quality over loan growth right now, which is prudent. To understand who is driving this capital structure, you should be Exploring Amerant Bancorp Inc. (AMTB) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

When you look at a bank like Amerant Bancorp Inc. (AMTB), the traditional Current Ratio and Quick Ratio (acid-test ratio) aren't defintely the most useful tools. For a bank, the key is capital adequacy and the quality of their funding mix, not just short-term assets versus liabilities. Still, we can map their liquid position using bank-specific metrics and cash flow data for the 2025 fiscal year.

The most telling metric for a bank's liquidity is the Loans to Deposits ratio. For Amerant Bancorp Inc., this ratio stood at 83.63% in the third quarter of 2025, which is a healthy figure, down from 86.55% in the second quarter of 2025. This shows they are not over-leveraged on their core funding base. A lower ratio means more deposits are available to cover loans or are held in liquid assets.

Here's the quick math on their core liquidity position as of Q3 2025:

• Total Assets: $10.4 billion
• Total Deposits: $8.3 billion
• Core Deposits (the sticky, reliable kind): $6.2 billion

This deposit base is the lifeblood of their operations. Plus, as of March 31, 2025, they had an aggregate borrowing capacity of $3.0 billion from the Federal Home Loan Bank (FHLB), a huge backstop for any unexpected liquidity needs. That's a strong safety net.

Cash Flow Dynamics and Working Capital

The cash flow statement for Amerant Bancorp Inc. through the trailing twelve months (TTM) ending September 30, 2025, tells a story of active balance sheet management. The working capital trend, while not a headline figure for a bank, is essentially managed through their cash flow from operations and investing in securities.

The TTM Operating Cash Flow was a solid inflow of $178.04 million. That money is the net result of their core business activities, including changes in assets like loans and liabilities like deposits, showing the business is generating cash. That's a good sign.

The Investing and Financing sections show where the cash is going and coming from:

The large negative cash flow from investing, specifically the $787.85 million investment in securities, is a deliberate move to deploy capital and manage interest rate risk. This isn't a concern; it's a strategy. On the financing side, the quarterly cash from financing activities was $132.9 million in Q2 2025, reflecting a net inflow, even after paying a quarterly cash dividend of $0.09 per share.

Near-Term Liquidity Outlook

Amerant Bancorp Inc. is in a strong liquidity position, supported by a healthy Loans to Deposits ratio of 83.63% and substantial contingent funding capacity. The key strength is the growth in core deposits, which were $6.2 billion in Q3 2025. What this estimate hides is the potential impact of credit quality issues, as management is proactively focusing on asset quality, which led to a higher-than-expected provision for credit losses in Q3 2025. This focus is a necessary action to protect future liquidity and capital.

For a deeper dive into the valuation and strategy, you should read the full analysis: Breaking Down Amerant Bancorp Inc. (AMTB) Financial Health: Key Insights for Investors.

Next Step: Investment Team: Model the impact of a 5% increase in non-performing assets on the CET1 capital ratio by the end of the month.

Valuation Analysis

You are looking at whether Amerant Bancorp Inc. (AMTB) is a good buy right now, and the numbers suggest it is trading at a discount to its book value, indicating it is likely undervalued on a Price-to-Book basis, but with a P/E ratio that is slightly elevated compared to its recent historical average. The current stock price of $17.57 (as of November 16, 2025) sits well below the analyst consensus target, which points to a potential upside.

Is Amerant Bancorp Inc. Overvalued or Undervalued?

When you look at the core valuation metrics for Amerant Bancorp Inc., the picture is mixed, but leans toward a value opportunity. The Price-to-Book (P/B) ratio is a critical measure for banks, and Amerant Bancorp Inc.'s ratio is currently 0.77 (as of November 2025, TTM). Since this is below 1.0, it means the market values the company at less than its net asset value, which is a classic signal of a potentially undervalued stock in the financial sector.

However, the Price-to-Earnings (P/E) ratio is 11.07 (TTM), which is a significant shift from its negative P/E a year ago, reflecting a return to profitability. Here's the quick math: if you compare this to the Enterprise Value-to-EBITDA (EV/EBITDA) ratio of 6.819, the bank looks reasonably priced relative to its operating cash flow, especially in a higher-rate environment.

• P/E Ratio: 11.07 (TTM) - A move back to a positive, though slightly higher than some peers.
• P/B Ratio: 0.77 (TTM) - Trading below book value, a strong indicator of undervaluation.
• EV/EBITDA: 6.819 - Suggests a fair valuation based on enterprise value.

Stock Price Volatility and Dividend Stability

The past year has been a bumpy ride for Amerant Bancorp Inc. stock, with the price decreasing by 26.36% over the last 12 months. This volatility is what creates opportunities, but also risk. The 52-week trading range shows a high of $26.24 and a low of $15.62, meaning the current price of $17.57 is closer to the low.

Still, the dividend offers a cushion. Amerant Bancorp Inc. pays an annual dividend of $0.36 per share, giving a current dividend yield of 2.02%. The payout ratio is a healthy 21.1% of earnings over the trailing twelve months, which is defintely sustainable and provides a substantial buffer for future payments, even if earnings fluctuate.

Analyst Consensus and Near-Term Action

The analyst community has a mixed, but generally positive outlook on Amerant Bancorp Inc. The consensus rating is often cited as a 'Hold' or 'Market Perform,' though some recent actions include upgrades to 'Buy.' The average analyst price target is $23.86, based on a broader survey, which implies a substantial upside from the current price. More recent price targets from late October and early November 2025, from firms like Keefe, Bruyette & Woods and Raymond James, average around $21.00, still suggesting a solid return.

What this estimate hides is the potential impact of the CEO change announced in November 2025, which can inject uncertainty but also new strategic focus. For a deeper dive into the balance sheet and strategic shifts, you'll want to review the full Breaking Down Amerant Bancorp Inc. (AMTB) Financial Health: Key Insights for Investors post. Your clear action here is to set a target entry price closer to the 52-week low, say $16.00, to maximize the margin of safety given the P/B and analyst upside.

Risk Factors

You need to know that Amerant Bancorp Inc. (AMTB) is currently navigating a tough credit cycle, which is the most immediate risk to its bottom line. The core challenge is balancing asset quality-especially in Commercial Real Estate (CRE)-with the need for growth, plus managing the cost of deposits in a competitive market.

The biggest near-term risk is the deterioration of asset quality, which forced Amerant Bancorp Inc. to prioritize credit risk over loan growth in the third quarter of 2025. This focus led to a higher-than-expected provision for credit losses (PCL) in Q3 2025, even though net income was still a positive $14.8 million, down from $23.0 million in Q2 2025. The company is clearly working through its loan portfolio issues.

• Credit Quality: Total non-performing assets (NPAs) were $140.8 million in Q1 2025, though they improved to $97.9 million by the end of Q2 2025.
• CRE Concentration: Investor-controlled commercial real estate makes up a significant 35.3% of the loan portfolio, exposing the bank to macro headwinds in the Florida real estate market.
• Allowance for Credit Losses (ACL): The ACL increased by 9.7% from $86.5 million to $94.9 million in Q3 2025, signaling management's realistic view on potential future losses.

Here's the quick math on the loan book: Classified loans, which are problematic credits, jumped from $166.5 million at the end of 2024 to $206.1 million in Q1 2025. That's a 23.8% increase in loans needing extra attention.

Funding and Market Condition Risks

External risks center on interest rates and the competitive fight for deposits. Amerant Bancorp Inc. has a reliance on various funding sources, and the battle for core deposits (which are cheaper and more stable than brokered deposits) is fierce. The company's total assets reached $10.4 billion in Q3 2025, crossing a key operational threshold, but this growth needs stable funding.

Liquidity risk is managed, but still a factor. Total advances from the Federal Home Loan Bank (FHLB)-a funding source-were $831.7 million in Q3 2025, up from $765.0 million in Q2 2025. You want to see that number stabilize or fall as core deposits grow.

Mitigation and Strategic Actions

Management is defintely not sitting still. They've been proactive, executing a strategic refocus on their core Florida markets, including the prior sale of the Houston Franchise. Their strategy is clear: address asset quality first, then resume growth.

Key mitigation strategies include:

• Asset Quality Focus: Primary focus is on reducing non-performing loans and proactively addressing asset quality.
• Funding Strategy: Expanding core deposits (up 1.0% to $6.2 billion in Q3 2025) to reduce reliance on higher-cost brokered deposits.
• Capital Management: Plans to resume share buybacks under the existing authorization and implement new expense reductions to improve results.

You should keep a close eye on the company's progress in reducing non-performing loans in Q4 2025. If you want a deeper dive into who is betting on this turnaround, you should read Exploring Amerant Bancorp Inc. (AMTB) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear map of where Amerant Bancorp Inc. (AMTB) goes from here, and the answer is simple: they are betting on efficiency and the Florida market. The company is in a strategic repositioning phase, trading short-term loan growth for long-term asset quality and operational improvements. This is a realist approach; they are cleaning up the balance sheet now to drive higher-quality earnings later.

The consensus estimate for Amerant Bancorp Inc.'s full-year 2025 revenue is around $436.14 million, with earnings per share (EPS) projected at $1.90. But the real story is the underlying efficiency gains, not just the top-line number. Analysts forecast an impressive annual earnings growth rate of 22.8% moving forward, significantly outpacing the projected annual revenue growth of 7.7%. That tells you the focus is on doing more with less, which is defintely a smart move in a tight credit environment.

The Florida-First Strategy and Efficiency Drive

The biggest growth driver is a clear, concentrated focus on the robust Florida market. Amerant Bancorp Inc. sold its Texas assets to sharpen its footprint, concentrating its 22 banking centers in South Florida and Tampa. This strategic move is designed to make the company the bank of choice in one of the fastest-growing regions in the US, leveraging positive migration trends.

Their strategic initiatives are laser-focused on profitability:

• Efficiency Target: Aiming for an efficiency ratio of 60% by late 2025, a significant improvement from the 67.9% seen in Q1 2025.
• Digital-Forward: Completing a core conversion to a new, fully integrated technology system, enabling digital onboarding and AI-enhanced team member experiences.
• Asset Quality: Prioritizing the reduction of non-performing loans, with an expectation to resume loan growth in the fourth quarter of 2025 and into 2026.

Here's the quick math on their core strength: In Q3 2025, the Net Interest Margin (NIM)-the difference between interest earned on assets and interest paid on liabilities-was 3.92%. That NIM is already running ahead of the national average for a bank of this size.

Competitive Edge and Fee Income Potential

Amerant Bancorp Inc.'s competitive advantage rests on its deep geographic specialization and a strong capital position. Being the largest community bank headquartered in Florida gives them a distinct local knowledge edge over national players. Plus, their Common Equity Tier 1 (CET1) ratio-a key measure of a bank's capital strength-was a solid 11.54% in Q3 2025.

A key opportunity for future revenue diversification lies in their wealth management services. Assets Under Management and custody (AUM) reached $3.17 billion in Q3 2025, a 3.4% sequential increase, and management sees this as a crucial area to grow non-interest, or fee, income. This is a necessary buffer against the cyclical nature of lending.

The market currently values Amerant Bancorp Inc. at a discount, trading at 10.4x Price-to-Earnings, compared to the US Banks industry average of 11.2x. This valuation suggests the market is still weighing the recent asset quality concerns against the clear strategic turnaround. To learn more about who is investing in the company, you can check out Exploring Amerant Bancorp Inc. (AMTB) Investor Profile: Who's Buying and Why?

The table below summarizes the core financial estimates for the full 2025 fiscal year:

Next Step: Check the Q4 2025 earnings call transcript for updates on the 60% efficiency ratio target and the resumption of loan growth.