Amerant Bancorp's Q3 profit falls on higher provision for credit losses

Overview

• Amerant Bancorp Q3 net income falls to $14.8 mln, EPS declines to $0.35 vs Q2

• Company reports higher provision for credit losses, focusing on asset quality over growth

• Company plans to resume share buybacks and implement expense reductions

Outlook

• Amerant anticipates loan growth in Q4 2025

• Company plans to resume share buybacks

• Amerant to implement new expense reductions

Result Drivers

• CREDIT LOSS PROVISION - Higher than expected provision for credit losses due to focus on asset quality, per CEO Jerry Plush

• LOAN REDUCTION - Total gross loans decreased by $247.4 mln, or 3.4%, reflecting a strategic focus on reducing non-performing loans

• INVESTMENT SECURITIES INCREASE - Investment securities rose by $336.8 mln, or 17.1%, indicating a shift in asset allocation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Amerant Bancorp Inc is $24.00, about 27% above its October 27 closing price of $17.53

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBwDVLrKa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)