Amerant Parts Ways with CEO Amid Growing Loan Issues
Amid increasing levels of problem loans, Jerry Plush, the former chairman and CEO of Amerant Bancorp, decided to step down as the company’s leader. This decision comes a week after Plush highlighted the challenges presented by the bank’s rising nonperforming loans. According to the Amerant company, this decision was mutual.
Changes in Leadership
Based in Coral Gables, Florida, Amerant announced Plush’s departure on Thursday, days after it occurred on Tuesday. In order to fill the vacant position of the chairman, Amerant’s board chose Odilon Almeida Jr., who was previously the lead independent director. The position of the interim CEO will be filled by Carlos Iafigliola, the bank’s current Chief Operating Officer.
Amerant’s board is presently conducting a search for a permanent CEO. The bank mentioned its intent to consider candidates from outside the company, as well as considering Iafigliola for the position.
Jerry Plush’s Tenure
Plush assumed the role of CEO in March 2021 and was appointed chairman the following year. The company displayed strong performance during his initial three years, reporting annual profits of $208 million. However, the company faced difficulties in 2024 as nonperforming assets more than doubled to $122.2 million by the end of the year.
Amerant’s Financial Challenges
Earlier this year, Amerant seemed to be making progress in resolving its credit quality issues. The company reported a significant decrease in nonperforming assets for the quarter ending June 30. However, these assets increased again, touching $140 million at the end of the third quarter. This increase in problem loans has been said to “put pressure on management credibility,” as noted by Piper Sandler analyst Stephen Scouten.
The company raised $165 million in equity in September 2024, an event that Plush described as a “testament to investor confidence in our vision and the Company’s future.” Although the shares initially performed well, rising about 24% in the first two months after the stock sale, they have since decreased by more than 30%. As of Thursday afternoon, Amerant’s stock was trading at $17.07.
Third Quarter Earnings
Amerant announced its third-quarter earnings five days later than originally scheduled, stating that the delay was to allow it to “complete its customary review process and quarter end closing procedures.” During the third quarter, the bank recorded a net income of $14.7 million, down from $23 million for the quarter ending June 30. Amerant reported a loss of $15.8 million in 2024.
Scouten’s Analysis of Plush’s Departure
Upon Plush’s departure, Scouten described the event as “a necessary and logical step forward for Amerant,” acknowledging that Plush’s transformation plans for the company have “clearly not gone as well as hoped.”
Amerant’s Legal Challenges
In addition to its loan portfolio issues, Amerant has also been dealing with a high-stakes lawsuit. An entity that had agreed to purchase distressed loans from Amerant alleged that the bank secretly made a deal with another party at a higher price before the formal transfer took place. The debt in question is worth more than $8.9 million, but the plaintiffs are also seeking punitive damages. Last month, a federal judge ruled against Amerant’s motion to strike the punitive damages claim.
A New Leadership
Carlos Iafigliola, who joined Amerant in 2004 and served as the bank’s chief operating officer since June 2023, is set to be the interim CEO. Iafigliola expressed his honor at being named the interim CEO and pledged to steer the bank towards sustainable and profitable growth.
Plush made several strategic decisions during his four-year tenure at Amerant. These include the sale of six Houston area branches and nearly $600 million of loans to MidFirst Bank based in Oklahoma City. This move was aimed at focusing more intently on Amerant’s expansion plans in South Florida and Tampa.
Plush also made substantial investments in deals with professional sports teams to boost Amerant’s brand awareness among Florida residents.
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