Bank narrows focus to Florida market, citing efficiency and expense reduction
Amerant Bank is stepping back from its national mortgage lending footprint and narrowing its focus to Florida, the bank announced Wednesday.
The bank will no longer offer mortgage services in 30 states, instead concentrating solely on customers within its branch network in the Sunshine State.
The move is part of a broader restructuring intended to cut costs and streamline operations. Amerant expects the decision to result in $2.5 million in quarterly savings beginning in the third quarter of 2025. The bank also anticipates an improvement in operating efficiency by nearly 1%, primarily through workforce reductions.
Amerant’s mortgage unit had 77 employees at the end of March, many located outside Florida. That headcount will be trimmed down to 20.
“With reduced volume, we expect variable costs, such as vendor-related operating costs and personnel cost, to be lower, resulting in a reduction in non-interest expenses of approximately $2.5 million per quarter, starting in the third quarter of 2025,” the bank said in its earnings release.
In 2024, Amerant originated $418.4 million in single-family residential and construction loans, generating $6.9 million in mortgage-banking income. The loans were made through both retail and wholesale channels.
Total gross loans dropped by $52 million to $7.2 billion, primarily due to prepayments outpacing new loan production. Meanwhile, provision for credit losses rose to $18.4 million, driven by five specific loans and macroeconomic factors.
Amerant reported an improvement in pre-provision net revenue (PPNR), which climbed to $33.9 million in the first quarter, up from $27.9 million the previous quarter. Non-interest expense, excluding an adjustment tied to other real estate owned (OREO) valuation, stood at $71 million.
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As part of its restructuring, Amerant has also made leadership changes. Jeff Tischler was appointed chief credit officer, and Braden Smith joined as chief consumer banking officer, moves the bank said will help bolster its risk management and consumer banking strategy.
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