Amerant Bancorp (AMTB) Stock Forecast & Price Target

Amerant Bancorp has demonstrated a solid financial performance, highlighted by a 7.4% growth in deposits, totaling $8.3 billion, driven largely by an increase of $223 million in core customer deposits. The bank's asset quality is improving, indicated by a $41 million reduction in non-performing loans (NPLs) and a favorable asset coverage ratio of 1.2%, despite a rise in classified loans. Additionally, Amerant anticipates continued organic deposit growth in alignment with loan growth, with management forecasting a 5% annualized growth for FY25 and targeting double-digit growth for 2026.

Amerant Bancorp's recent loan growth has been adversely impacted by payoffs and asset quality-related sales, leading to concerns over the bank's ability to maintain robust net income in the face of a potential economic slowdown that may escalate nonperforming assets and charge-offs. The firm faces heightened risks from its concentration in commercial real estate and a dependency on foreign deposits, which may decline, affecting net interest margin and overall balance sheet growth. Additionally, an unfavorable shift in interest rates could compress spreads and negatively influence the bank's asset sensitivity, further straining earnings projections.