Amerant Bancorp Inc. (NYSE: AMTB), the parent company of Amerant Bank, has entered into a definitive agreement with MidFirst Bank for the sale of its Houston-based banking operations.

The deal, which encompasses six branches within the Houston metropolitan area, involves the transfer of approximately $576 million in customer deposits and $529 million in loan portfolios.

Jerry Plush, the Chairman and CEO of Amerant, emphasized the decision as a calculated step in the company’s strategic planning.

“Our review of the dual-state business model revealed the need for significant investment to scale our Houston operations to a level that impacts our future results materially,” Plush stated.

“Given the robust growth prospects in Florida, we are choosing to concentrate our resources on expanding our presence in South Florida and Tampa.”

The transaction, poised to enhance Amerant’s focus on becoming the preferred bank in its operational markets, is pending standard closing conditions and regulatory nods. The completion of the sale is anticipated in the latter half of 2024.

Financial advisory for Amerant was provided by Stephens Inc., with Squire Patton Boggs (US) LLP acting as legal counsel. MidFirst Bank’s financial guidance came from Raymond James & Associates, Inc., with legal advice from Covington & Burling LLP.