Shares of Amerant Bancorp (AMTB) plunged 5.31% in pre-market trading on Tuesday following the release of the company's third-quarter earnings report that fell short of analyst expectations. The disappointing results, coupled with increased provisions for credit losses, sparked investor concerns about the bank's asset quality and growth prospects.
Amerant Bancorp reported net income of $14.8 million for Q3 2025, or $0.35 per diluted share, significantly lower than the $23.0 million, or $0.55 per diluted share, recorded in the previous quarter. The earnings per share of $0.35 missed the analyst consensus estimate of $0.53 by 26.42%. While the company's quarterly sales of $111.623 million slightly beat estimates, the focus remained on the sharp decline in profitability.
The bank's Chairman and CEO, Jerry Plush, acknowledged the challenges, stating, "While the Company continues to show strong pre-provision net revenue, our results this quarter show higher than expected provision for credit losses as we continued to proactively focus on addressing asset quality over growth this quarter." This strategic shift towards improving asset quality at the expense of growth appears to have unsettled investors, contributing to the stock's sharp decline. Plush also mentioned plans to resume share buybacks and implement new expense reductions, signaling efforts to improve financial performance in the coming quarters.
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