Amerant Bancorp Inc.AMTB
Amerant Bancorp Inc. Income Taxes Disclosure
Income Taxes
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Effective January 1, 2025, the Company adopted new income tax disclosure guidance. Income taxes disclosures presented for the year ended December 31, 2025 reflect the updated presentation and disclosure requirements. See “Note 1. Business, Basis of Presentation and Summary of Significant Accounting Policies” for additional information.
The components of the income before income tax expense and income tax expense for the year ended December 31, 2025 is follows:
| (in thousands) | December 31, 2025 | ||||
| Income before income tax expense: | |||||
| Domestic | $ | 66,141 | |||
Total income before income tax | $ | 66,141 | |||
| Current tax expense: | |||||
| Federal | $ | 7,588 | |||
State and local | 1,518 | ||||
Total current tax expense | 9,106 | ||||
Deferred tax expense (benefit): | |||||
| Federal | $ | 4,780 | |||
State and local | (162) | ||||
Total deferred tax expense | 4,618 | ||||
Total income tax expense: | |||||
| Federal | 12,368 | ||||
State and local | 1,356 | ||||
| Total income tax expense | $ | 13,724 | |||
The components of the income tax (benefit) expense for the years ended December 31, 2024 and 2023 are as follows:
| December 31, | |||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
Current tax (benefit) expense: | |||||||||||
| Federal | $ | (755) | $ | 19,768 | |||||||
| State | 726 | 1,313 | |||||||||
Deferred tax (benefit) | (8,303) | (10,542) | |||||||||
Total income tax (benefit) expense | $ | (8,332) | $ | 10,539 | |||||||
The following table shows a reconciliation of the income tax expense at the statutory federal income tax rate to the Company’s effective income tax rate for the year ended December 31, 2025:
| 2025 | |||||||||||
| (in thousands, except percentages) | Amount | % | |||||||||
| Tax expense calculated at the statutory federal income tax rate | $ | 13,890 | 21.00 | % | |||||||
State and Local Income Tax, Net of Federal Income Tax Effect (1) | 1,199 | 1.81 | % | ||||||||
Nontaxable or Nondeductible Items | |||||||||||
BOLI income | (2,120) | (3.21) | % | ||||||||
Tax-exempt interest income | (418) | (0.63) | % | ||||||||
Section 162(m) executive compensation | 436 | 0.66 | % | ||||||||
Meals and entertainment | 483 | 0.73 | % | ||||||||
Other | 653 | 0.99 | % | ||||||||
Other Adjustments | |||||||||||
Rate differential on deferred items | (1,068) | (1.61) | % | ||||||||
Other | 669 | 1.01 | % | ||||||||
Effective Tax Rate | $ | 13,724 | 20.75 | % | |||||||
(1)Taxes in Florida and New York made up the majority, or approximately 63%, of the tax effect in this category
The following table shows a reconciliation of the income tax (benefit) expense at the statutory federal income tax rate to the Company’s effective income tax rate for each of the years ended December 31, 2024 and December 31, 2023:
| 2024 | 2023 | ||||||||||||||||||||||
| (in thousands, except percentages) | Amount | % | Amount | % | |||||||||||||||||||
| Tax (benefit) expense calculated at the statutory federal income tax rate | $ | (5,057) | 21.00 | % | $ | 8,679 | 21.00 | % | |||||||||||||||
| Increases (decreases) resulting from: | |||||||||||||||||||||||
| Non-taxable interest income | (468) | 1.94 | % | (491) | (1.19) | % | |||||||||||||||||
| (Non-taxable) taxable BOLI income | (2,058) | 8.55 | % | 1,302 | 3.15 | % | |||||||||||||||||
| State and city taxes (benefit) expense, net of federal tax effect | (3,670) | 15.24 | % | 1,037 | 2.51 | % | |||||||||||||||||
| Disallowed interest expense and other expenses | 1,445 | (6.00) | % | 1,547 | 3.74 | % | |||||||||||||||||
| Rate differential on deferred items | 1,152 | (4.78) | % | (2,159) | (5.22) | % | |||||||||||||||||
| Noncontrolling interest | — | — | % | 357 | 0.87 | % | |||||||||||||||||
| Other, net | 324 | (1.35) | % | 267 | 0.64 | % | |||||||||||||||||
Total income tax (benefit) expense | $ | (8,332) | 34.60 | % | $ | 10,539 | 25.50 | % | |||||||||||||||
The composition of the net deferred tax asset is as follows:
| December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Tax effect of temporary differences | |||||||||||
| Lease liability | $ | 31,187 | $ | 28,065 | |||||||
Allowance for credit losses | 19,020 | 20,447 | |||||||||
| Deferred compensation | 5,900 | 5,227 | |||||||||
Valuation allowance on loans held for sale | 3,380 | — | |||||||||
Net operating loss carryover | 3,307 | 14,660 | |||||||||
Provision for loan contingencies | 2,385 | 1,420 | |||||||||
Stock-based compensation | 1,797 | 1,585 | |||||||||
OREO write downs | 1,729 | 1,449 | |||||||||
| Impairment on investments (1) | 1,136 | 503 | |||||||||
Dividend Income | 626 | 126 | |||||||||
Net unrealized losses in other comprehensive income | 299 | 13,658 | |||||||||
Depreciation and amortization | (3,705) | (4,689) | |||||||||
Goodwill amortization | (4,586) | (4,696) | |||||||||
Right-of-use asset | (28,178) | (25,553) | |||||||||
Other (1) | 1,269 | 1,341 | |||||||||
| Net deferred tax assets | $ | 35,566 | $ | 53,543 | |||||||
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(1)As of December 31, 2024, Impairment on Investments was included in Other. As of December 31, 2025, it was reclassified to its own separate line for comparability purposes.
The Company evaluates the deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including its own historical financial performance and that of its operating subsidiaries and projections of future taxable income. This evaluation involves significant judgment by management about assumptions that are subject to change from period to period. Management believes that the weight of all the positive evidence currently available exceeds the negative evidence in support of the realization of the future tax benefits associated with the federal net deferred tax asset. As a result, management has concluded that the federal net deferred tax asset in its entirety will more likely than not be realized. Therefore, a valuation allowance is not considered necessary. If future results differ significantly from the Company’s current projections, a valuation allowance against the net deferred tax asset may be required.
At December 31, 2025, the Company did not have any federal net operating losses (“NOLs”) which would be carried forward indefinitely. At December 31, 2024, the Company had approximately $49.6 million of federal NOLs and the deferred tax asset related to the federal NOLs is approximately $10.4 million.
At December 31, 2025 and 2024, Amerant Bank, N.A. standalone had NOLs in the state of Florida of approximately $76.1 million and $97.7 million, respectively, which can be carried forward indefinitely. The deferred tax asset related to these NOLs at December 31, 2025 and 2024 is approximately $3.3 million and $4.3 million, respectively. A valuation allowance has not been recorded against the state deferred tax asset related to these NOLs as management believes it is more likely than not that the tax benefit will be realized.
At December 31, 2025 and 2024, Amerant Bancorp Inc. standalone had accumulated NOLs in the state of Florida of approximately $157.5 million and $159.2 million, respectively. These NOLs are carried forward for a maximum of 20 years or indefinitely, depending on the year generated, based on applicable Florida law. The deferred tax asset related to these NOLs at December 31, 2025 and 2024 is approximately $6.8 million and $6.9 million, respectively. A valuation allowance has been recorded against the state deferred tax asset as management believes it is more likely than not that the tax benefit will not be realized.
At December 31, 2025 and 2024, the Company had no unrecognized tax benefits or associated interest or penalties that needed to be accrued.
The Company and its subsidiaries file a consolidated federal income tax return as well as combined state income tax returns where combined filings are required. The federal and state tax returns for years 2022 through 2025 remain subject to examination by the corresponding tax jurisdictions.
Legislative Developments
On July 4, 2025, federal legislation generally referred to as H.R. 1 - One Big Beautiful Bill Act (the “Act”) was signed into law. The Act includes a variety of tax provisions including permanently extending and modifying certain key aspects of existing tax law.
U.S. GAAP requires the effects of changes in tax laws and rates to be recognized in its financial statements in the period in which legislation is enacted. The Company evaluated the impact of the Act on its consolidated financial statements and determined there was not a material impact resulting from the Act.
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.