Amerant Bancorp Inc. Material Event - What Happened

Hey there! Let's break down some news about Amerant Bancorp Inc. in a way that makes sense, without all the confusing finance talk. Think of this as me explaining what just happened at the company over a cup of coffee.

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1. What happened? (The Big News, Plain and Simple)

Okay, so Amerant Bancorp Inc. just announced that they've released a detailed slide presentation to give an update on the health of their loans and other assets, specifically focusing on credit risk migration and efforts to reduce non-performing assets. Basically, they're sharing a deep dive into the quality of the money they've lent out and the value of their holdings, including some key numbers and actions they're taking.

2. When did it happen? (The Timeline)

This news officially came out on December 30, 2025.

3. Why did it happen? (The Story Behind the Story)

So, why did Amerant Bancorp do this? Well, companies often provide these kinds of updates to be transparent with their investors and the public. It's especially important for banks to show how well they're managing the money they've lent out (their "credit quality") and the overall value of their investments (their "asset quality"). Think of it as them making a strategic move to keep everyone informed about the financial stability of the bank, particularly regarding the risks associated with the money they've lent out and the value of their holdings.

Specifically, Amerant stated that "Credit Quality remains a core priority" and this update underscores their commitment to providing timely insight into their risk profile ahead of year-end. During the fourth quarter of 2025, they intensified efforts to reinforce credit discipline. This included:

• Proactively reviewing loan agreements and financial statements across their loan portfolio.
• Deploying additional resources to speed up these reviews and update risk ratings.
• Launching weekly leadership meetings focused on "special assets" (loans that might be struggling).
• Engaging a well-recognized third-party firm to help accelerate their risk rating testing and validation.
• Actively pursuing resolutions for struggling loans, including selling some off and increasing efforts to collect on loans that were previously written off.

These initiatives demonstrate their dedication to strengthening credit risk management and establishing a solid foundation for sustainable, healthy growth.

4. Why does this matter? (The "So What?" Factor)

This isn't just some boring corporate announcement; it actually has real implications. This matters because the quality of a bank's loans and assets is a direct indicator of its financial health and future profitability. If credit quality is strong, it suggests the bank is managing its risks well and is less likely to face losses from unpaid loans. If it's weakening, it could signal potential problems.

The presentation reveals some important details:

• They've assessed a significant portion (85%) of their commercial and commercial real estate loans to ensure risk ratings are accurate.
• They've transferred approximately $94 million in loans from their regular books to "held for sale," meaning they intend to sell them off. This move resulted in a non-routine loss of about $16 million (including estimated selling costs). They expect these sales to close in January 2026, which will reduce their "classified loans" (loans considered substandard or doubtful) by that amount.
• Their estimated non-performing loans (NPLs) – loans where borrowers aren't making payments – are expected to increase from $124.3 million in Q3 2025 to an estimated $156.7 million in Q4 2025. This increase is primarily due to five specific loans, including two commercial loans ($78 million) and one private banking relationship ($24 million), being downgraded to non-accrual status.
• However, they also noted that they've transferred $19 million in non-accrual loans to held for sale, and once those sales close, their NPLs are expected to decrease to $137 million.
• They also reported $23 million in charge-offs (loans they don't expect to collect), partially offset by $18 million in recoveries from other loans.

In short, it's a move that could help people understand how robust Amerant Bancorp's financial foundation is, showing both areas of concern (like the increase in NPLs) and proactive steps they are taking to manage those risks (like selling off problematic loans).

5. Who is affected? (Who Cares About This?)

A change like this touches different people in different ways:

• Customers: If you bank with Amerant, you probably won't notice much day-to-day. This is more about the bank's internal financial health rather than direct customer services.
• Employees: For the people working at Amerant, this update is unlikely to directly impact daily work or job security unless the credit quality reveals severe underlying issues (which isn't indicated in the announcement itself). However, the increased focus on credit discipline and special assets might mean more work for certain teams.
• Investors/Shareholders: If you own stock in Amerant, this news is very important. It gives you crucial information to assess the bank's risk profile and potential for future earnings. The details about increasing non-performing loans, the $16 million non-routine loss from loan sales, and the proactive management steps are key for deciding whether to buy, sell, or hold your shares. Good credit and asset quality can boost confidence, while poor quality can raise concerns and potentially affect the stock price.
• Competitors: Other banks in the area will definitely be watching this, as it provides insight into Amerant's financial health, which can be a factor in the competitive banking landscape.

6. What happens next? (The Road Ahead)

So, what's the immediate future look like? Investors will likely review this presentation closely to understand the specifics of Amerant's credit and asset quality. The company expects to close the sales of the $94 million in classified loans and $19 million in non-accrual loans in January 2026, which will reduce their classified and non-performing loan totals. The company will continue to monitor and manage these aspects, and we'll probably see further updates in their regular quarterly earnings reports. Keep an eye out for their next earnings report and any further announcements that might elaborate on the details shared in this presentation.

7. What should investors/traders know? (Your Takeaways)

For those of you trading or investing in Amerant Bancorp, here's what this means for you:

• Keep an eye on the details: Watch how the market reacts to this news in the coming days. Is the stock price moving up or down significantly? More importantly, if you have access to the actual slide presentation (Exhibit 99.1), carefully review it for specific trends in loan delinquencies, non-performing assets (which are estimated to increase in Q4 2025 before expected sales), and any changes in their loan loss reserves. Note the $16 million non-routine loss from the loan transfers.
• Consider the long game: While short-term reactions can be volatile, think about what this means for Amerant's long-term growth and profitability. Does the information in the presentation, including the proactive steps taken and the expected reduction in problematic loans from sales, suggest stability or potential challenges for the bank's long-term performance?
• Do your own homework: This is just a summary to help you understand, but always do your own research and consider your personal financial goals before making any investment decisions.