Amerant: 3 Key Takeaways for Long-Term Investors

Amerant reported a net income of $25.7 million in the third quarter of 2026, with profit margins expanding. The bank is actively reducing structural operating costs and clearing legacy nonperforming loans, aiming to retool its balance sheet for growth. Three key takeaways for long-term investors were highlighted.

Firstly, Amerant successfully shifted $270 million of low-cost interest-bearing deposits into demand deposit accounts, which are standard zero-interest checking accounts. This move lowered the bank's total funding costs, protecting its net interest margin and benefiting long-term investors.

Secondly, Amerant's resolution of troubled debt has freed up capital and restored underlying credit quality across its commercial and real estate portfolios. The bank continues to actively resolve criticized exposures while improving workflow enhancements and automation of the credit approval process.

Lastly, Amerant's international business provides a unique funding advantage over regional competitors, offering cheap deposits to fund domestic loans. Non-Venezuelan international deposits increased by $87.3 million, or 12%, contributing to Amerant's strong funding advantage and relationship growth. The company's earnings momentum is building, with higher loan yields and disciplined deposit costs boosting operating returns.

The goal is to lower the efficiency ratio toward 60% over time, with fourth-quarter non-interest expense expected to be approximately $68 million.