Amerant Bancorp (NYSE:AMTB) reported higher second-quarter earnings as growth in low-cost international deposits supported loan and securities balances, while the company continued to reduce criticized credit exposures and outlined plans for further loan, deposit and profitability growth through year-end.
Diluted earnings per share rose to $0.53 in the second quarter of 2026 from $0.44 in the first quarter. Net interest income increased to $82.6 million from $80.3 million, while net income, return on assets and return on equity improved, according to Chief Financial Officer Sharymar Calderón.
Deposits Drive Balance-Sheet Growth
Total assets increased to $10.3 billion at June 30 from $9.9 billion at the end of the first quarter. Total deposits rose by $416 million to $8.4 billion, principally because of international deposit growth. Gross loans increased by $112 million to $6.9 billion, led by commercial and industrial lending and residential mortgages, partly offset by commercial prepayments, loan sales and strategic exits.
President and CEO Carlos Iafigliola said the company is emphasizing Florida loan growth, more granular C&I production and selected residential mortgage lending. Amerant does not take credit risk outside the U.S. and uses its international funding to support domestic lending, Calderón said.
International deposits, particularly from Venezuela, were a major source of the quarter’s funding growth. Iafigliola said Venezuelan deposits rose by nearly $500 million from the first quarter, citing the company’s brand recognition, established client relationships and banking relationships in the country.
In response to an analyst question, Iafigliola said the deposits are largely tied to oil production and include institutional balances that are ultimately redeployed into commercial and personal accounts. He said Amerant views the deposits as relatively sticky, while noting the company will manage concentration, compliance and pricing discipline as balances grow.
The higher proportion of lower-cost deposits reduced Amerant’s total deposit cost to 2.21% from 2.31% in the prior quarter, while its cost of funds declined to 2.38% from 2.47%. Net interest margin edged down to 3.52% from 3.55%, however, as lower loan yields offset much of the benefit from reduced funding costs.
Management said competitive pricing for high-quality loans has narrowed new-loan spreads. Iafigliola said Amerant previously originated some loans at spreads above 200 basis points over SOFR, but competition for the asset classes now targeted by the bank has tightened pricing. The company expects net interest margin of about 3.50% for the remainder of 2026.
Credit Optimization Continues
Management described credit transformation as its highest strategic priority. During the quarter, Amerant revised credit policies and procedures, including approval authorities and product programs, and completed a revamp of its loan-origination stage.
The bank also continued to exit selected exposures, loans outside its footprint and criticized credits. Nonperforming loans declined by $5 million, or 2.8%, to $171 million, equal to 1.7% of total assets. After the quarter closed, a $9 million New York commercial real estate loan was repaid, reducing nonperforming loans to $162 million, Calderón said.
Loan payoffs totaled $24 million and loan sales totaled about $40 million within the classified portfolio during the quarter. Special mention loans, classified loans and nonperforming loans all declined, according to the company.
The provision for credit losses fell to $4.8 million from $7.8 million in the first quarter, reflecting lower needs for specific reserves and higher recoveries, partially offset by loan growth and macroeconomic adjustments. Gross charge-offs were $5.5 million, mainly associated with two commercial loans, and were offset by $4 million in recoveries. Amerant expects gross charge-offs of 25 to 30 basis points, potentially offset by recoveries from workout efforts.
Iafigliola said future growth will be concentrated mainly in C&I lending, with a smaller contribution from residential lending. The bank remains selective in commercial real estate as it continues to address classified and nonperforming CRE assets. He said the bank’s typical target transaction size is near $30 million, with larger loans generally reserved for selected top-tier customers or especially stable properties and projects.
Expenses, Capital Returns and Outlook
Noninterest expense increased 2.9% sequentially to $68.9 million, driven by higher variable compensation, vendor costs and the final portion of a terminated sports partnership agreement. Those increases were partly offset by the absence of investment impairment expense recorded in the first quarter and lower losses on loans held for sale.
Amerant expects third-quarter expenses to be in line with the second quarter, followed by fourth-quarter expenses of $66 million to $67 million. The company is targeting an efficiency ratio of approximately 60% and said it identified additional cost-saving initiatives expected to materialize in the fourth quarter. Management also said it has identified artificial intelligence use cases intended to improve productivity.
For the fourth quarter, Amerant expects total loans of about $7.3 billion and deposits of about $9.1 billion. Management said it expects to reach a 1% return on assets by year-end, with net interest income expected to be the largest contributor.
Common equity tier 1 capital rose to 11.94% from 11.84% in the first quarter, aided by lower risk-weighted assets and quarterly earnings. The company repurchased 690,000 shares during the quarter at a weighted average price of $23.29 per share, or about one times tangible book value, and paid a $0.09 quarterly common dividend. Its board approved another $0.09 per-share dividend payable Aug. 28.
Management said the bank expects to remain above $10 billion in assets by year-end and believes costs associated with crossing that threshold are largely incorporated into its current expense run rate. The company said it expects only modest additional technology investments in 2027 while seeking to maintain expenses near anticipated fourth-quarter levels.
About Amerant Bancorp (NYSE:AMTB)
Amerant Bancorp is the bank holding company and parent of Amerant Bank, a community-oriented financial institution headquartered in Coral Gables, Florida. Amerant Bank delivers a comprehensive range of deposit and lending products to both retail and commercial clients, including checking and savings accounts, certificates of deposit, consumer mortgages, and business lines of credit. In addition, the company offers specialized services such as treasury management, international trade finance, foreign exchange, and asset-based lending to support the complex needs of corporate and high-net-worth customers.
Tracing its roots to the early 1980s, Amerant has grown through a combination of strategic acquisitions and organic expansion.
