Amerant Bancorp Inc. Completes Sale of Houston Banking Operations to MidFirst Bank, Refocusing on Core Florida Markets
Amerant Bancorp Inc. (NYSE: AMTB), a prominent financial institution, has finalized a strategic decision to streamline its operations by selling its banking assets in the Houston metropolitan area. The sale was made to MidFirst Bank, an Oklahoma City-based financial entity. This transaction, initially announced earlier this year, was officially completed on November 8, 2024. It encompasses the transfer of six branches along with approximately $573.9 million in deposits and $479.2 million in loans from Amerant Bank, N.A., a wholly owned subsidiary of Amerant Bancorp.
Strategic Focus on Core Markets
In a statement regarding the sale, Jerry Plush, Chairman and CEO of Amerant Bancorp, emphasized the strategic importance of this decision. He remarked, “We are pleased to announce the successful completion of the sale of our Houston banking operations to MidFirst Bank. This strategic move allows us to concentrate on our core markets in Florida, accelerating our expansion efforts in the south Florida and greater Tampa areas.” Plush highlighted that this shift is aligned with the company’s broader vision of becoming the preferred banking institution within its key markets.
By divesting from the Houston region, Amerant Bancorp aims to sharpen its focus and allocate more resources to its growth strategy in Florida, which has seen increasing demand and potential for expansion. This strategic refocus reflects the company’s long-term plans to enhance its market share in Florida, catering to a growing customer base in both residential and commercial segments.
Details of the Transaction
The finalized deal transferred substantial assets between the two banking entities, marking a significant restructuring effort for Amerant Bancorp. The transaction included around $573.9 million in deposits, which represents the total customer deposits held at the six Houston branches. Additionally, approximately $479.2 million in loans were transferred to MidFirst Bank. This move signifies a substantial reallocation of financial resources, allowing Amerant Bancorp to redirect its focus to regions where it sees more growth potential.
The transaction was facilitated by industry experts on both sides. Stephens Inc. acted as the financial adviser to Amerant, providing strategic insights and guidance throughout the process. Legal counsel for Amerant was provided by Squire Patton Boggs (US) LLP, a law firm known for its expertise in corporate transactions. On the other side, MidFirst Bank was advised by Raymond James & Associates, Inc., a reputable financial services firm, while legal counsel was handled by Covington & Burling LLP, ensuring a smooth and legally sound transaction.
Implications for Amerant Bancorp
For Amerant Bancorp, this sale is more than a simple divestiture; it is a strategic pivot aimed at refining its market focus and optimizing resource allocation. With this transaction, the company seeks to streamline its operations and concentrate its efforts on its primary markets in Florida, where it already has a significant presence. The south Florida and greater Tampa regions, in particular, have been identified as key growth areas with increasing demand for financial services, especially given Florida’s robust population growth and economic development.
Jerry Plush elaborated on the company’s future strategy, stating, “This decision enables us to channel our efforts into expanding and enhancing our services in Florida. We remain committed to delivering exceptional value to our customers and shareholders as we work towards our goal of being the bank of choice in the markets we serve.” This statement underscores Amerant’s commitment to its core customer base and its intent to enhance its competitive position in Florida’s banking sector.
MidFirst Bank’s Expansion Strategy
For MidFirst Bank, this acquisition marks a significant expansion into the Texas market, broadening its footprint beyond its primary base in Oklahoma City. The addition of the six Houston branches presents an opportunity for MidFirst Bank to tap into the vibrant economic landscape of the Houston metropolitan area, which is known for its diverse and growing economy. With this acquisition, MidFirst Bank aims to enhance its presence in Texas, leveraging the established customer relationships and local market knowledge that come with the acquired branches.
MidFirst Bank’s entry into Houston aligns with its broader growth strategy of expanding its geographical reach and diversifying its customer base. The acquisition of these branches, complete with deposits and loans, provides a solid foundation for MidFirst Bank to grow its market share in Texas and offer its banking services to a new demographic.
The Role of Financial Advisers and Legal Counsel
The successful completion of this transaction was supported by the expertise of several financial and legal advisers. Stephens Inc., serving as the financial adviser to Amerant, played a crucial role in facilitating the deal, offering financial analysis and strategic advice to ensure a fair and efficient transaction. Squire Patton Boggs (US) LLP provided legal counsel, guiding Amerant through the legal intricacies of the sale.
MidFirst Bank was represented by Raymond James & Associates, Inc., a firm with extensive experience in financial advisory services. Their role was instrumental in structuring the acquisition to align with MidFirst Bank’s growth objectives. Legal counsel from Covington & Burling LLP ensured that the transaction adhered to all regulatory requirements and protected the interests of MidFirst Bank throughout the process.
Future Outlook
The completion of this sale marks a significant shift for both Amerant Bancorp and MidFirst Bank, each positioning itself for growth in its respective core markets. For Amerant, this move is expected to enhance its ability to deliver targeted banking solutions in Florida, driving growth and improving profitability. The company’s decision to refocus on Florida indicates a strong belief in the region’s economic potential and the opportunities it presents for financial service providers.
MidFirst Bank, on the other hand, is poised to benefit from its new presence in the Houston market, gaining access to a large and dynamic customer base. This acquisition is expected to complement its existing operations and facilitate its long-term growth strategy in Texas.
In summary, this transaction reflects a strategic alignment for both financial institutions, allowing them to concentrate on their core markets and pursue growth opportunities tailored to their specific business goals. The sale is a clear example of how banks are adapting their strategies to focus on regions where they can achieve the greatest competitive advantage and meet the evolving needs of their customers.
About Amerant Bancorp Inc.
Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., and Amerant Mortgage, LLC. The Company provides individuals and businesses with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is headquartered in Florida and has over 10 billion in assets. The Bank operates 19 banking centers – 18 in South Florida and 1 in Tampa, FL.
