Amerant boosted stake in mortgage company in 2Q

Amerant Bancorp in Coral Gables, Fla., increased its ownership stake in its mortgage company. 

The $8.2 billion-asset company said in a press release that its stake in Amerant Mortgage increased from 57.4% to 80% after two former principals became full-time bank employees and relinquished their interest in the business. Amerant also contributed $1 million in capital to the unit. 

Amerant Mortgage, which reduced headcount by 15%, to 67 employees, reached breakeven status during the second quarter. The business contributed $2.4 million of noninterest income during the second quarter after funding 253 loans totaling $118.6 million. 

Separately, Amerant said it began originating loans as part of a white label equipment finance effort. The company also plans to close a branch by the end of this year in a move that will led to $1.6 million in one-time charges and should generate an estimated $1.1 million in annual expense savings.