Amerant shares rise 2.8% on earnings beat, $40M buyback
Full-year turnaround to $52.4M profit drives investor optimism despite asset quality concerns
Amerant Bancorp shares advanced 2.8% on Thursday after the Florida-based regional bank reported quarterly earnings that exceeded analyst expectations and announced a substantial share repurchase program.
The bank delivered core earnings per share of $0.53, matching internal estimates but surpassing the Wall Street consensus of $0.43, according to analyst estimates published before the release. Revenue reached $112.2 million, topping analyst projections of $110.2 million and representing a 1.8% beat on the top line.
The earnings report, which was scheduled for release after market close on January 22, highlighted a dramatic full-year turnaround. Amerant swung from a loss in the prior year to a profit of $52.4 million for 2025, a performance that analysts say justifies investor optimism about the company's operational recovery.
Shareholders welcomed the announcement of a $40 million share repurchase program, representing approximately 4.4% of the company's $915 million market capitalization. The buyback authorization signals management's confidence in the bank's valuation and capital position, particularly as shares currently trade at 0.89 times book value, below the typical 1.0 multiple that suggests shares are undervalued relative to their tangible assets.
Amerant also maintained its quarterly dividend of $0.09 per share, preserving a 1.77% yield for income-focused investors. The dividend announcement comes as the bank seeks to balance returning capital to shareholders with maintaining strong capital ratios amid economic uncertainty.
The results weren't without concerns. Non-performing assets increased 33.6% to $186.9 million, signaling some deterioration in asset quality that analysts will likely scrutinize during the company's conference call scheduled for January 23 at 9:00 AM ET. The rise in troubled assets reflects broader challenges facing regional banks as interest rates remain elevated and economic growth moderates.
Amerant currently trades at $22.21, below its 52-week high of $23.95 but well above its yearly low of $15.54. The stock's 12.56 trailing price-to-earnings ratio represents a reasonable valuation compared to larger bank peers, while analysts have an average price target of $22.25, suggesting limited upside from current levels according to market data.
The analyst community remains cautiously optimistic on the stock, with two analysts rating it a strong buy, one recommending buy, and one advising hold, according to recent coverage. The consensus reflects confidence in Amerant's ability to execute its turnaround strategy while navigating a challenging operating environment for regional banks.
Investors will focus on the company's guidance for 2026 and management's commentary on credit quality trends during Friday's conference call. The trajectory of non-performing assets and the bank's ability to maintain the earnings momentum will be key factors determining whether the recent share gains can be sustained through the year ahead.