Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”)
today reported net income attributable to the Company of $16.0
million in the first quarter of 2022, or $0.45 per diluted share, a
decrease compared to net income attributable to the Company of
$65.5 million, or $1.77 per diluted share, in the fourth quarter of
2021, which included the sale of the Company’s headquarter
building, and an increase compared to the net income attributable
to the Company of $14.5 million, or $0.38 per diluted share, in the
first quarter of 2021.
Core Pre-Provision Net Revenue (“Core PPNR”)1
was $17.9 million in the first quarter of 2022, a decrease from
$18.9 million in the fourth quarter of 2021, and an increase from
$15.8 million in the first quarter of 2021. Return on assets
(“ROA”) and return on equity (“ROE”) were 0.84% and 8.10%,
respectively, in the first quarter of 2022, compared to 3.45% and
32.04%, respectively, in the fourth quarter of 2021, and 0.76% and
7.47%, respectively, in the first quarter of 2021.
1 Non-GAAP measure, see “Non-GAAP Financial
Measures” for more information and Exhibit 2 for a reconciliation
to GAAP.
Financial Highlights:
- Total gross loans were $5.72
billion up $153.6 million, or 2.8%, compared to $5.57 billion in
4Q21; average yield increased to 4.16% in 1Q22 from 4.10% in
4Q21.
- Sold $57.3 million in loans from
NYC available for sale portfolio; $68.6 million in available for
sale loans remain as of March 31, 2022. The NYC loan portfolio
decreased to $373.0 million as of March 31, 2022, down by $118
million from December 31, 2021.
- Total deposits as of 1Q22 were
$5.69 billion, up $60.8 million compared to $5.63 billion in
4Q21.
- Core deposits were $4.44 billion,
up $150.4 million, or 3.5%, compared to 4Q21.
- Average cost of total deposits
decreased to 0.38% in 1Q22 from 0.41% in 4Q21.
- Non-interest bearing to total
deposits increased to 23.2% of total deposits compared to 21.0% for
4Q21.
- Released $10.0 million from the
allowance for loan losses (“ALL”) during the first quarter of 2022,
compared to a release of $6.5 million in the fourth quarter of
2021.
- Repaid $180.0 million in short-term
FHLB advances and borrowed $350.0 million in longer-term advances
to extend duration.
- AUM totaled $2.13 billion, down
$91.7 million, or 4.1%, from 4Q21, reflective of market decline in
value.
- Noninterest income was $14.0
million, down 81.9% from $77.3 million in 4Q21, as the fourth
quarter of 2021 included a $62.4 million gain on the sale of the
Company’s headquarters building.
- Noninterest expense was $60.8
million, up 10.4% from $55.1 million in 4Q21, as the first quarter
of 2022 included $6.6 million in non-recurring noninterest expense
charges, including $4.0 million of estimated contract termination
costs.
“We are pleased to report solid loan and deposit
growth in the quarter, which reflects the increasing momentum we
have toward achieving our end goal of becoming a top quartile
performing community bank,” said Jerry Plush, Vice Chairman,
President and CEO. “We continued to make significant progress in
the transformation of Amerant. Our first quarter results reflect a
number of non-recurring items, many of these resulting from
positive steps taken to generate greater value for our shareholders
in coming quarters.”
Significant Actions:
- Changes in the Board of Directors,
which included the appointment of four new board members, all of
whom live in our footprint, and the retirement of two long-time
board members.
- Completed the private placement of
$30 million of 4.25% fixed-to-floating rate subordinated notes due
2032, considered as tier 2 capital.
- Repurchased a total of 1.6 million
shares under authorized buyback programs.
- Paid a cash dividend of $0.09 per
share on February 28, 2022 and declared a $0.09 per share cash
dividend on April 13, 2022 to be paid on May 31, 2022.
- Reduced headcount by 80 FTEs as per
our agreement with FIS; total bank only FTEs were 598 as of March
31, 2022.
- Initiated the reorganization of
lines of business to focus on commercial banking and consumer
banking separately to drive performance in the geographies we
serve.
- Joined the USDF Consortium as the
7th bank to join the association formed to provide a base source
for banks' digital asset & blockchain strategies; continue to
evaluate numerous fintech solutions.
- Launched Employee Stock Purchase
Program (“ESPP”), subject to shareholders approval at the Company’s
Annual meeting.
- Hired a new head of retail
banking.
- Entered into a multi-year agreement
to drive our equipment financing business; this partnership
provides an efficient white label solution to drive sales and
provide underwriting capabilities.
- Issued the Company’s first
Environmental, Social and Governance (“ESG”) report on April 15,
2022 demonstrating its commitment to sustainability.
- Announced a multi-year partnership
with the University of Miami athletics, making Amerant the
“Official Hometown Bank” of the Miami Hurricanes.
Summary Results
The summary results of the first quarter ended
March 31, 2022 were as follows:
- Net income attributable to Amerant
was $16.0 million in the first quarter of 2022, down 75.6% from
$65.5 million in the fourth quarter of 2021, and up 10.3% from
$14.5 million in the first quarter of 2021. Core net income1 was
$22.2 million in the first quarter of 2022 compared to $19.3
million in the fourth quarter of 2021, and compared to core net
income of $12.6 million in the first quarter of 2021.
- Net Interest Income (“NII”) was
$55.6 million, down 0.2% from $55.8 million in the fourth quarter
of 2021, and up 17.0% from $47.6 million in the first quarter of
2021. Net interest margin (“NIM”) was 3.18% in the first quarter of
2022, up 1 basis point from 3.17% in the fourth quarter of 2021,
and up 52 basis points from 2.66% in the first quarter of
2021.
- Amerant released $10.0 million from
the allowance for loan losses during the first quarter of 2022,
compared to a release of $6.5 million in the fourth quarter of
2021. No provision for loan losses was recorded in the first
quarter of 2021. The ratio of allowance for loan losses to total
loans held for investment was 1% as of March 31, 2022,
compared with 1.29% as of December 31, 2021, and 1.93% as of March
31, 2021. The ratio of net charge-offs to average total loans held
for investment in the first quarter of 2022 was 0.29% compared to
0.52% in the fourth quarter of 2021, and zero net charge offs in
the first quarter of 2021.
- Non-interest income was $14.0
million in the first quarter of 2022, down 81.9% from $77.3 million
in the fourth quarter of 2021, as the fourth quarter of 2021
included a $62.4 million gain on the sale of the Company’s
headquarters building, and slightly down 1.0% from $14.2 million in
the first quarter of 2021.
- Non-interest expense was $60.8
million, up 10.4% from $55.1 million in the fourth quarter of 2021
and up 39.4% from $43.6 million in the first quarter of 2021, as
the first quarter of 2022 included $6.6 million in non-recurring
charges, inclusive of $4.0 million on estimated contract
termination costs.
- The efficiency ratio was 87.3% in
the first quarter of 2022, compared to 41.4% in the fourth quarter
of 2021, and 70.7% in the first quarter of 2021. Core efficiency
ratio1 was 76.4% in the first quarter of 2022, compared to 75.0% in
the fourth quarter of 2021, and 73.4% in the first quarter of
2021.
- Total gross loans, which include
loans held for sale, were $5.72 billion at the close of the first
quarter of 2022, up $153.6 million, or 2.8%, compared to the close
of the fourth quarter of 2021. Total deposits were $5.69 billion at
the close of the first quarter of 2022, up by $60.8 million, or
1.08%, compared to the close of the fourth quarter of 2021, and
slightly up by $13.6 million, or 0.2%, compared to the close of the
first quarter 2021.
- Stockholders’ book value per common
share attributable to the Company was $21.82 at March 31,
2022, compared to $23.18 at December 31, 2021, and $20.70 at March
31, 2021. Tangible stockholders’ book value (“TBV”)1 per common
share was $21.15 as of March 31, 2022, compared to $22.55 at
December 31, 2021, and $20.13 at March 31, 2021.
Credit Quality
The ALL was $56.1 million at the close of the
first quarter of 2022, compared to $69.9 million at the close of
the fourth quarter of 2021, and $110.9 million at the close of the
first quarter of 2021. The Company released $10.0 million from the
ALL in the first quarter of 2022, compared to a release of $6.5
million in the fourth quarter of 2021. No provision for loan losses
was recorded in the first quarter of 2021. The ALL release during
the first quarter of 2022 was primarily attributed to improved
macro-economic conditions and loan upgrades, as well as payoffs and
pay-downs of non-performing loans and special mention loans,
partially offset by additional reserves requirements for
charge-offs, loan growth and two loans downgraded to non-performing
during the period. During the first quarter of 2022, the $14.1
million ALL associated with the COVID-19 pandemic was reduced to
$4.9 million reflecting the improved macro-economic conditions,
while still taking into account impact for supply chain
disruptions, inflationary pressures and labor shortages prevalent
in the current economic environment.
Net charge-offs during the first quarter of 2022
totaled $3.8 million, compared to $7.0 million in the fourth
quarter of 2021 and zero net charge offs in the first quarter of
2021. Charge-offs during the period were primarily due to $3.3
million in two commercial loans and $1.0 million in consumer loans,
offset by $0.5 million in recoveries.
Classified and special mention loans decreased
5.6% and 51.2%, respectively, compared to the fourth quarter of
2021, and decreased 46.9% and 67.0%, respectively, compared to the
first quarter of 2021. The decrease in classified loans was
primarily due to $12.9 million in payoffs. The decrease in special
mention loans was primarily due to the upgrade of one CRE loan
totaling $24.9 million.
Non-performing assets totaled $56.7 million at
the end of the first quarter of 2022, a decrease of $2.8 million or
4.7%, compared to the fourth quarter of 2021, and $33.2 million, or
37.0%, compared to the first quarter of 2021, due to the decrease
in classified loans as mentioned above. The ratio of non-performing
assets to total assets at the end of the first quarter of 2022 was
73 basis points, down 5 basis points from 78 basis points in the
fourth quarter of 2021 and 43 basis points from 116 basis points in
the first quarter of 2021, respectively. In the first quarter of
2022, the ratio of ALL to non-performing loans decreased to
119.34%, from 140.41% at December 31, 2021 and decreased from
123.92% at the close of the first quarter of 2021.
Loans and Deposits
Total loans, including loans held for sale, as
of March 31, 2022 were $5.72 billion, up $153.6 million, or
2.8%, compared to December 31, 2021. Loans held for sale totaled
$85.7 million and $158.1 million as of March 31, 2022 and
December 31, 2021, respectively. There were $1.0 million in loans
held for sale in the first quarter of 2021. Loans held for sale
include $17.1 million primarily in residential mortgage loans
originated for sale, and $68.6 million New York loans held for
sale. In the first quarter of 2022, the Company completed the sale
of $57.3 million in loans held for sale related to the New York
portfolio, at par value. Despite the sale of the NY portfolio and
other recorded paydowns, net loan growth was driven by sales
efforts in CRE and C&I during the quarter. This growth was also
complemented with some purchases performed under the indirect
lending program.
Total deposits as of March 31, 2022 were
$5.69 billion, up $60.8 million, or 1.1%, compared to December 31,
2021. The quarter-over-quarter increase in total deposits was
primarily attributable to an increase in customer transaction
account balances of $198.1 million, or 4.7%, compared to December
31, 2021, with non-interest bearing deposits, interest-bearing
demand and savings and money market growth contributing $135.0
million, $49.2 million and $13.8 million to such growth,
respectively. Offsetting the increase in total deposits was a
reduction of $89.6 million, or 6.7%, in time deposits. Customer CDs
compared to the prior quarter decreased $97.2 million, or 9.3% as
the Company continued to focus on increasing core deposits and
emphasizing multi-product relationships versus single product
higher-cost CDs. Brokered time deposits remain somewhat flat for
the first quarter of 2021.
Core deposits, which consist of total deposits
excluding all time deposits, as of March 31, 2022 were $4.4
billion, an increase of $150.4 million or 3.5%, compared to
December 31, 2021, and $647.5 million, or 17.1% compared to March
31, 2021. The $4.4 billion in core deposits includes
interest-bearing demand deposits of $1.5 billion and savings and
money market deposits of $1.6 billion, which remained flat from
December 31, 2021, as well as noninterest bearing demand deposits
of $1.3 billion, which increased from $1.2 billion as of December
31, 2021. Domestic deposits totaled $3.2 billion, slightly up $42.9
million, or 1.4%, compared to December 31, 2021, while foreign
deposits totaled $2.5 billion, slightly up $18.0 million, or 0.7%,
compared to December 31, 2021, primarily driven by our efforts to
grow deposits from customers in other countries other than
Venezuela.
Net Interest Income and Net Interest
Margin
First quarter 2022 NII was $55.6 million, flat from $55.8
million in the fourth quarter of 2021 and up $8.1 million, or
16.98%, from $47.6 million in the first quarter of 2021. NIM was
3.18% in the first quarter of 2022, up 1 basis point from 3.17% in
the fourth quarter of 2021, and up 52 basis points from 2.66% in
the first quarter of 2021. During the first quarter of 2022 the
Company repaid $180.0 million in short-term FHLB advances and
borrowed $350.0 million in longer-term advances to extend the
duration of this portfolio. With these actions the Company
effectively increased the duration of financial liabilities under a
scenario of an imminent increase in interest rates.
The year-over-year increase in NII was primarily
driven by higher average yields on loans and available for sale
securities, lower average balances and rates on customer CDs, lower
balances in brokered time deposits and lower money market deposit
costs as well as lower balances in FHLB advances. Partially
offsetting the year-over-year increase in NII were lower balances
on loans and available for sale securities, as well as higher costs
in interest bearing deposits, brokered time deposits, FHLB
advances, and the cost of the new subordinated debt.
Noninterest income
In the first quarter of 2022, noninterest income
was $14.0 million, down $63.3 million, or 81.9%, from $77.3 million
in the fourth quarter of 2021. The decrease was primarily driven by
the absence of the $62.4 million gain on the sale of the Company’s
headquarters building recorded in the fourth quarter of 2021.
Contributing to the decrease were also net losses on the early
extinguishment of FHLB advances, lower income from brokerage,
advisory and fiduciary activities, net unrealized losses on
derivatives valuation, as well as decreased mortgage banking
income. Record fee income from client derivatives as well as net
securities gains partially offset the aforementioned decrease in
noninterest income.
Noninterest income slightly decreased $0.1
million, or 0.97%, in the first quarter of 2022 from $14.2 million
in the first quarter of 2021. The year-over-year decrease in
noninterest income was primarily driven by lower net gains on
securities and net losses on the early extinguishment of FHLB
advances. The decrease was mostly offset by an increase in
derivative client income, deposit and service fees and other income
from mortgage banking.
During the first quarter of 2022, Amerant
Mortgage (“AMTM”) solidified its wholesale team and launched its
construction loan program to help drive future revenues. In the
first quarter of 2022, AMTM received 292 applications and funded
156 loans totaling $91.1 million. Total mortgage loans held
for sale were $17.1 million as of March 31, 2022. On March 31,
2022, the Company increased its ownership interest in AMTM from 51%
to 57.4% to meet Fannie Mae’s required capital guidelines.
The Company’s assets under management and
custody (“AUM”) totaled $2.1 billion as of March 31, 2022,
decreasing $91.7 million, or 4.1%, from $2.2 billion as of December
31, 2021, and increasing $110.5 million, or 5.5% from $2.0 billion
as of March 31, 2021. The quarter-over-quarter decrease in AUM was
primarily driven by lower market valuations, though Amerant’s
advisory portfolios performed relatively well compared to the
overall market drop as the decrease in market value was partially
offset by an increase of $12.1 million in net new assets.
The year-over-year increase in AUM was primarily
driven by increased market value as well as net new assets of
$114.7 million that were recorded in the last twelve months,
attributed to the Company’s relationship-centric strategy.
Noninterest expense
First quarter of 2022 noninterest expense was $60.8 million, up
$5.7 million, or 10.40%, from $55.1 million in the fourth quarter
of 2021. The increase was primarily driven by estimated technology
contract termination costs resulting from the upcoming transition
to FIS supported systems and applications, as well as a valuation
expense recorded on the change in fair value of NY loans held for
sale. In addition, there were higher: (i) net rent expense related
to the leasing of the Company’s headquarters building; (ii)
advertising expenses related to build brand awareness; (iii)
severance expenses in connection with the restructuring of business
lines; and (iv) commissions paid primarily related to AMTM. These
increases were partially offset by lower (i) salaries and variable
compensation costs driven by a lower number of full-time-equivalent
employees (“FTEs”) in 1Q22 compared to 4Q21 as a result of the
Company’s agreement with FIS; (ii) legal fees; and (iii)
depreciation and amortization expenses resulting from the sale of
the Company’s headquarters building.
Noninterest expense in the first quarter of
2022, increased $17.2 million, or 39.4% compared to $43.6 million
in the first quarter of 2021. The increase was primarily driven by
the aforementioned reasons as well as higher total salaries and
employee benefits primarily driven by higher long term incentive
plan expenses, salaries and variable compensation as well as
severance expenses; (ii) professional and other service fees
primarily in connection with customer derivative transactions and
services received from FIS, as well as the onboarding of the new
firm as a result of outsourcing of the Company’s internal audit
function.
In the first quarter of 2022, AMTM had
noninterest expenses totaling $3.5 million, which includes $2.6
million in salaries and employee benefits, $0.9 million in
residential mortgage loan operations, professional fees and other
noninterest expenses.
The efficiency ratio was 87.29% in the first
quarter of 2022, compared to 41.40% in the fourth quarter of 2021,
and 70.67% in the first quarter of 2021. The quarter-over-quarter
increase in the efficiency ratio was primarily driven by the
absence of the gain on sale of the Company’s headquarters building
recorded in the fourth quarter of 2021. The year-over-year increase
in the efficiency ratio was primarily due to higher noninterest
expenses as noted above. Core efficiency ratio1 increased to 76.36%
in the first quarter of 2022 compared to 74.98% in the fourth
quarter of 2021 and 73.35% in the first quarter of 2021, primarily
driven by higher rent expense, advertising expenses and commissions
paid, as previously described.
Amerant continues to work on increasing
operating efficiencies. As of March 31, 2022, total FTEs reached
677 compared to 763 on December 31, 2021, primarily as a result of
the Company’s agreement with FIS. Also, the Company is focused on
further strengthening its business structure as evidenced by the
larger percentage of team members in business generation roles than
in support functions.
Capital Resources and
Liquidity
The Company’s capital continues to be strong and
well in excess of the minimum regulatory requirements to be
considered “well-capitalized” at March 31, 2022.
Stockholders’ equity attributable to the Company
totaled $749.4 million as of March 31, 2022, down $82.5
million, or 9.9%, from $831.9 million as of December 31, 2021,
primarily driven by: (i) an aggregate of $54.8 million of Class A
common stock repurchased in the first quarter of 2022, under the
Class A repurchase programs launched in 2021 and 2022; (ii) an
after-tax unrealized loss of $39.7 million in the market value of
debt securities available for sale as a result of the increase of
more than 100 basis points recorded in long term interest rates;
and (iii) $3.2 million of dividends declared and paid by the
Company in the first quarter of 2022. These decreases were
partially offset by net income of $16.0 million in the first
quarter of 2022.
Book value per common share decreased to $21.82
at March 31, 2022 compared to $23.18 at December 31, 2021
primarily driven by the unrealized loss of $39.7 million in the
fair value of debt securities available for sale, which more than
offset share repurchases and net income during the first quarter of
2022. TBV1 per common share decreased to $21.15 at March 31,
2022 compared to $22.55 at December 31, 2021.
Amerant’s liquidity position includes cash and
cash equivalents of $276.2 million at the close of the first
quarter of 2022, compared to $274.2 million as of December 31,
2021. Additionally, as of the end of the first quarter of 2022 and
the fourth quarter of 2021 the Company, through its subsidiary
Amerant Bank, had $1.3 billion and $1.4 billion, respectively, in
available borrowing capacity with the FHLB.
1 Non-GAAP measure, see “Non-GAAP Financial
Measures” for more information and Exhibit 2 for a reconciliation
to GAAP.
First Quarter 2022 Earnings Conference
Call
The Company will hold an earnings conference
call on Thursday, April 21, 2022 at 9:00 a.m. (Eastern Time) to
discuss its first quarter 2022 results. The conference call and
presentation materials can be accessed via webcast by logging on
from the Investor Relations section of the Company’s website at
https://investor.amerantbank.com. The online replay will remain
available for approximately one month following the call through
the above link.
About Amerant Bancorp Inc. (NASDAQ:
AMTB)
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., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The
Company provides individuals and businesses in the U.S., as well as
select international clients, with deposit, credit and wealth
management services. The Bank, which has operated for over 40
years, is the second largest community bank headquartered in
Florida. The Bank operates 24 banking centers – 17 in South Florida
and 7 in the Houston, Texas area. For more information, visit
investor.amerantbank.com.
FIS® and any associated brand names/logos are the trademarks of
FIS and/or its affiliates.
Cautionary Notice Regarding
Forward-Looking Statements
This press release contains “forward-looking
statements” including statements including statements with respect
to the Company's objectives, expectations and intention with
respect to the Company’s objectives, expectations and intentions
and other statements that are not historical facts. All statements
other than statements of historical fact are statements that could
be forward-looking statements. You can identify these
forward-looking statements through our use of words such as “may,”
“will,” “anticipate,” “assume,” “should,” “indicate,” “would,”
“believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,”
“point to,” “project,” “could,” “intend,” “target,” “goals,”
“outlooks,” “modeled,” “dedicated,” “create,” and other similar
words and expressions of the future.
Forward-looking statements, including those
relating to our beliefs, plans, objectives, goals, expectations,
anticipations, estimates and intentions, involve known and unknown
risks, uncertainties and other factors, which may be beyond our
control, and which may cause the Company’s actual results,
performance, achievements, or financial condition to be materially
different from future results, performance, achievements, or
financial condition expressed or implied by such forward-looking
statements. You should not rely on any forward-looking statements
as predictions of future events. You should not expect us to update
any forward-looking statements, except as required by law. All
written or oral forward-looking statements attributable to us are
expressly qualified in their entirety by this cautionary notice,
together with those risks and uncertainties described in “Risk
factors” in our annual report on Form 10-K for the fiscal year
ended December 31, 2021 and in our other filings with the U.S.
Securities and Exchange Commission (the “SEC”), which are available
at the SEC’s website www.sec.gov.
Interim Financial
Information
Unaudited financial information as of and for
interim periods, including the three months ended March 31, 2022
and 2021, may not reflect our results of operations for our fiscal
year ending, or financial condition as of December 31, 2022, or any
other period of time or date.
Non-GAAP Financial Measures
The Company supplements its financial results
that are determined in accordance with accounting principles
generally accepted in the United States of America (“GAAP”) with
non-GAAP financial measures, such as “pre-provision net revenue
(PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core net
income (loss)”, “core net income (loss) per share (basic and
diluted)”, “core return on assets (Core ROA)”, “core return on
equity (Core ROE)”, “core efficiency ratio”, and “tangible
stockholders’ equity (book value) per common share”. This
supplemental information is not required by, or is not presented in
accordance with GAAP. The Company refers to these financial
measures and ratios as “non-GAAP financial measures” and they
should not be considered in isolation or as a substitute for the
GAAP measures presented herein.
We use certain non-GAAP financial measures,
including those mentioned above, both to explain our results to
shareholders and the investment community and in the internal
evaluation and management of our businesses. Our management
believes that these non-GAAP financial measures and the information
they provide are useful to investors since these measures permit
investors to view our performance using the same tools that our
management uses to evaluate our past performance and prospects for
future performance, especially in light of the additional costs we
have incurred in connection with the Company’s restructuring
activities that began in 2018 and continued in 2022, including the
effect of non-core banking activities such as the sale of loans and
securities, the valuation of securities, derivatives and loans held
for sale, the sale of our corporate headquarters in the fourth
quarter of 2021, and other non-recurring actions intended to
improve customer service and operating performance. While we
believe that these non-GAAP financial measures are useful
in evaluating our performance, this information should be
considered as supplemental and not as a substitute for or superior
to the related financial information prepared in accordance with
GAAP. Additionally, these non-GAAP financial measures may
differ from similar measures presented by other companies.
Exhibit 2 reconciles these non-GAAP financial
measures to reported results.
Exhibit 1- Selected Financial
Information
The following table sets forth selected financial information
derived from our unaudited and audited consolidated financial
statements.
(in thousands) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
|
$ |
7,532,844 |
|
|
$ |
7,751,098 |
|
Total investments |
|
1,324,969 |
|
|
|
1,341,241 |
|
|
|
1,422,738 |
|
|
|
1,359,240 |
|
|
|
1,375,292 |
|
Total gross loans (1) |
|
5,721,177 |
|
|
|
5,567,540 |
|
|
|
5,478,924 |
|
|
|
5,608,548 |
|
|
|
5,754,838 |
|
Allowance for loan losses |
|
56,051 |
|
|
|
69,899 |
|
|
|
83,442 |
|
|
|
104,185 |
|
|
|
110,940 |
|
Total deposits |
|
5,691,701 |
|
|
|
5,630,871 |
|
|
|
5,626,377 |
|
|
|
5,674,908 |
|
|
|
5,678,079 |
|
Core deposits (2) |
|
4,443,414 |
|
|
|
4,293,031 |
|
|
|
4,183,587 |
|
|
|
4,041,867 |
|
|
|
3,795,949 |
|
Advances from the FHLB and
other borrowings |
|
980,047 |
|
|
|
809,577 |
|
|
|
809,095 |
|
|
|
808,614 |
|
|
|
1,050,000 |
|
Senior notes |
|
58,973 |
|
|
|
58,894 |
|
|
|
58,815 |
|
|
|
58,736 |
|
|
|
58,656 |
|
Subordinated notes (3) |
|
29,156 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Junior subordinated
debentures |
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
Stockholders' equity
(4)(5)(6)(7) |
|
749,396 |
|
|
|
831,873 |
|
|
|
812,662 |
|
|
|
799,068 |
|
|
|
785,014 |
|
Assets under management and
custody (8) |
|
2,129,387 |
|
|
|
2,221,077 |
|
|
|
2,188,317 |
|
|
|
2,132,516 |
|
|
|
2,018,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
(in thousands, except
percentages and per share amounts) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Consolidated Results
of Operations |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
55,645 |
|
|
$ |
55,780 |
|
|
$ |
51,821 |
|
|
$ |
49,971 |
|
|
$ |
47,569 |
|
(Reversal of) provision for
loan losses |
|
(10,000 |
) |
|
|
(6,500 |
) |
|
|
(5,000 |
) |
|
|
(5,000 |
) |
|
|
— |
|
Noninterest income |
|
14,025 |
|
|
|
77,290 |
|
|
|
13,434 |
|
|
|
15,734 |
|
|
|
14,163 |
|
Noninterest expense |
|
60,818 |
|
|
|
55,088 |
|
|
|
48,404 |
|
|
|
51,125 |
|
|
|
43,625 |
|
Net income attributable to
Amerant Bancorp Inc. (9) |
|
15,950 |
|
|
|
65,469 |
|
|
|
17,031 |
|
|
|
15,962 |
|
|
|
14,459 |
|
Effective income tax rate |
|
21.10 |
% |
|
|
23.88 |
% |
|
|
24.96 |
% |
|
|
22.65 |
% |
|
|
20.15 |
% |
|
|
|
|
|
|
|
|
|
|
Common Share
Data |
|
|
|
|
|
|
|
|
|
Stockholders' book value per
common share |
$ |
21.82 |
|
|
$ |
23.18 |
|
|
$ |
21.68 |
|
|
$ |
21.27 |
|
|
$ |
20.70 |
|
Tangible stockholders' equity
(book value) per common share (10) |
$ |
21.15 |
|
|
$ |
22.55 |
|
|
$ |
21.08 |
|
|
$ |
20.67 |
|
|
$ |
20.13 |
|
Basic earnings per common
share |
$ |
0.46 |
|
|
$ |
1.79 |
|
|
$ |
0.46 |
|
|
$ |
0.43 |
|
|
$ |
0.38 |
|
Diluted earnings per common
share (11) |
$ |
0.45 |
|
|
$ |
1.77 |
|
|
$ |
0.45 |
|
|
$ |
0.42 |
|
|
$ |
0.38 |
|
Basic weighted average shares
outstanding |
|
34,820 |
|
|
|
36,607 |
|
|
|
37,134 |
|
|
|
37,330 |
|
|
|
37,618 |
|
Diluted weighted average
shares outstanding (11) |
|
35,114 |
|
|
|
37,065 |
|
|
|
37,518 |
|
|
|
37,693 |
|
|
|
37,846 |
|
Cash dividend declared per
common share (7) |
$ |
0.09 |
|
|
$ |
0.06 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Other Financial and
Operating Data (12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
Indicators (%) |
|
|
|
|
|
|
|
|
|
Net interest income / Average total interest earning assets (NIM)
(13) |
3.18 |
% |
|
3.17 |
% |
|
2.94 |
% |
|
2.81 |
% |
|
2.66 |
% |
Net income / Average total
assets (ROA) (14) |
0.84 |
% |
|
3.45 |
% |
|
0.90 |
% |
|
0.83 |
% |
|
0.76 |
% |
Net income / Average
stockholders' equity (ROE) (15) |
8.10 |
% |
|
32.04 |
% |
|
8.38 |
% |
|
8.11 |
% |
|
7.47 |
% |
Noninterest income / Total
revenue (16) |
20.13 |
% |
|
58.08 |
% |
|
20.59 |
% |
|
23.95 |
% |
|
22.94 |
% |
|
|
|
|
|
|
|
|
|
|
Capital Indicators
(%) |
|
|
|
|
|
|
|
|
|
Total capital ratio (17) |
13.80 |
% |
|
14.56 |
% |
|
14.53 |
% |
|
14.17 |
% |
|
14.12 |
% |
Tier 1 capital ratio (18) |
12.48 |
% |
|
13.45 |
% |
|
13.28 |
% |
|
12.92 |
% |
|
12.87 |
% |
Tier 1 leverage ratio
(19) |
10.67 |
% |
|
11.52 |
% |
|
11.18 |
% |
|
10.75 |
% |
|
10.54 |
% |
Common equity tier 1 capital
ratio (CET1) (20) |
11.55 |
% |
|
12.50 |
% |
|
12.31 |
% |
|
11.95 |
% |
|
11.90 |
% |
Tangible common equity ratio
(21) |
9.34 |
% |
|
10.63 |
% |
|
10.58 |
% |
|
10.35 |
% |
|
9.88 |
% |
|
|
|
|
|
|
|
|
|
|
Asset Quality
Indicators (%) |
|
|
|
|
|
|
|
|
|
Non-performing assets / Total
assets (22) |
0.73 |
% |
|
0.78 |
% |
|
1.24 |
% |
|
1.61 |
% |
|
1.16 |
% |
Non-performing loans / Total
loans (1) (23) |
0.82 |
% |
|
0.89 |
% |
|
1.51 |
% |
|
2.16 |
% |
|
1.56 |
% |
Allowance for loan losses /
Total non-performing loans |
119.34 |
% |
|
140.41 |
% |
|
100.84 |
% |
|
86.02 |
% |
|
123.92 |
% |
Allowance for loan losses /
Total loans held for investment (1) |
0.99 |
% |
|
1.29 |
% |
|
1.59 |
% |
|
1.86 |
% |
|
1.93 |
% |
Net charge-offs /
Average total loans held for investment (24) |
0.29 |
% |
|
0.52 |
% |
|
1.16 |
% |
|
0.12 |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
Efficiency Indicators
(% except FTE) |
|
|
|
|
|
|
|
|
|
Noninterest expense / Average
total assets |
3.20 |
% |
|
2.90 |
% |
|
2.55 |
% |
|
2.67 |
% |
|
2.28 |
% |
Salaries and employee benefits
/ Average total assets |
1.60 |
% |
|
1.65 |
% |
|
1.53 |
% |
|
1.61 |
% |
|
1.38 |
% |
Other operating expenses/
Average total assets (25) |
1.60 |
% |
|
1.25 |
% |
|
1.02 |
% |
|
1.06 |
% |
|
0.90 |
% |
Efficiency ratio (26) |
87.29 |
% |
|
41.40 |
% |
|
74.18 |
% |
|
77.80 |
% |
|
70.67 |
% |
Full-Time-Equivalent Employees
(FTEs) (27) |
677 |
|
763 |
|
733 |
|
719 |
|
731 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
(in thousands, except
percentages and per share amounts) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Core Selected
Consolidated Results of Operations and Other Data
(10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net revenue (PPNR) |
$ |
9,928 |
|
|
$ |
79,141 |
|
|
$ |
17,485 |
|
|
$ |
15,397 |
|
|
$ |
18,107 |
|
Core pre-provision net revenue
(Core PPNR) |
$ |
17,869 |
|
|
$ |
18,911 |
|
|
$ |
18,297 |
|
|
$ |
16,934 |
|
|
$ |
15,765 |
|
Core net income |
$ |
22,216 |
|
|
$ |
19,339 |
|
|
$ |
17,669 |
|
|
$ |
17,199 |
|
|
$ |
12,589 |
|
Core basic earnings per common
share |
|
0.64 |
|
|
|
0.53 |
|
|
|
0.48 |
|
|
|
0.46 |
|
|
|
0.33 |
|
Core earnings per diluted
common share (11) |
|
0.63 |
|
|
|
0.52 |
|
|
|
0.47 |
|
|
|
0.46 |
|
|
|
0.33 |
|
Core net income / Average
total assets (Core ROA) (14) |
|
1.17 |
% |
|
|
1.02 |
% |
|
|
0.93 |
% |
|
|
0.90 |
% |
|
|
0.66 |
% |
Core net income / Average
stockholders' equity (Core ROE) (15) |
|
11.28 |
% |
|
|
9.46 |
% |
|
|
8.69 |
% |
|
|
8.74 |
% |
|
|
6.50 |
% |
Core efficiency ratio
(28) |
|
76.36 |
% |
|
|
74.98 |
% |
|
|
72.95 |
% |
|
|
74.45 |
% |
|
|
73.35 |
% |
__________________ |
(1) |
Total gross loans include loans held for investment net of
unamortized deferred loan origination fees and costs. In addition,
at March 31, 2022, December 31, 2021, September 30, 2021 and March
31, 2021, total loans include $68.6 million, $143.2 million, $219.1
million and $1.0 million, respectively, in loans held for sale
carried at the lower of cost or estimated fair value. During the
first quarter of 2022 and the fourth quarter of 2021, the Company
sold approximately $57.3 million and $49.4 million,
respectively, in loans held for sale carried at the lower of cost
or estimated fair value related to the NY portfolio. In addition,
as of March 31, 2022, December 31, 2021, September 30, 2021 and
June 30, 2021, total loans include $17.1 million, $14.9 million,
$5.8 million and $1.8 million, respectively, primarily in mortgage
loans held for sale carried at fair value. |
(2) |
Core deposits consist of total deposits excluding all time
deposits. |
(3) |
On March 9, 2022, the Company completed a $30.0 million offering of
subordinated notes with at 4.50% fixed-to-floating rate and due in
March 15, 2032 (the “Subordinated Notes”). The Subordinated Notes
will initially bear interest at a fixed rate of 4.25% per annum,
from and including March 9, 2022, to but excluding March 15, 2027,
with interest payable semi-annually in arrears. From and including
March 15, 2027, to but excluding the stated maturity date or early
redemption date, the interest rate will reset quarterly to an
annual floating rate equal to the then-current benchmark rate,
which will initially be the three-month Secured Overnight Financing
Rate (“SOFR”) plus 251 basis points, with interest during such
period payable quarterly in arrears. If three-month SOFR cannot be
determined during the applicable floating rate period, a different
index will be determined and used in accordance with the terms of
the Notes. Subordinated notes are presented net of direct issuance
costs which are deferred and amortized over 10 years. The
Subordinated Notes have been structured to qualify as Tier 2
capital of the Company for regulatory capital purposes, and rank
equally in right of payment to all of our existing and future
subordinated indebtedness. |
(4) |
In the first quarter of 2022, the Company repurchased an aggregate
of 652,118 shares of Class A common stock at a weighted average
price of $33.96 per share, under the Class A common stock
repurchase program launched in 2021 (the “Class A Common Stock
Repurchase Program”). The aggregate purchase price for these
transactions was approximately $22.1 million, including
transaction costs. On January 31, 2022, the Company announced the
completion of the Class A Common Stock repurchase program. In
addition, in the first quarter of 2022, the Company announced the
launching of a new repurchase program pursuant to which the Company
may purchase, from time to time, up to an aggregate amount of
$50 million of its shares of Class A common stock (the “New
Class A Common Stock Repurchase Program”). In the first quarter of
2022, the Company repurchased an aggregate of 991,362 shares of
Class A common stock at a weighted average price of $32.96 per
share, under the new Class A Common Stock Repurchase Program. The
aggregate purchase price for these transactions was approximately
$32.7 million, including transaction costs. As of April 6, 2022,
the Company has repurchased an additional 121,146 shares of Class A
common stock at weighted average price of $31.02 under the New
Class A Common Stock Repurchase Program. The aggregate purchase
price for these transactions was approximately $3.8 million,
including transaction costs. |
(5) |
In the fourth quarter of 2021, the Company’s shareholders approved
a clean-up merger, previously announced by the Company, pursuant to
which a subsidiary of the Company merged with and into the Company
(the “Merger”). Under the terms of the Merger, each outstanding
share of Class B common stock was converted to 0.95 of a share of
Class A common stock. In addition, any shareholder who owned fewer
than 100 shares of Class A common stock upon completion of the
Merger, received cash in lieu of Class A common stock. There were
no authorized or outstanding Class B common stock at December 31,
2021. Furthermore, in connection with the Merger, the Company’s
Board of Directors authorized the Class A Common Stock Repurchase
Program which provided for the potential to repurchase up to $50
million of shares of Class A common stock. In the fourth quarter of
2021, the Company repurchased an aggregate of 1,175,119 shares of
Class A common stock for an aggregate purchase price of $36.3
million, including $27.9 million repurchased under the Class A
Common Stock Repurchase Program and $8.5 million shares cashed out
in accordance with the terms of the Merger. The total weighted
average market price of these transactions was $30.92 per
share. |
(6) |
On March 10, 2021, the Company’s Board of Directors approved a
stock repurchase program which provided for the potential
repurchase of up to $40 million of shares of the Company’s Class B
common stock (the “ Class B Common Stock Repurchase Program”). In
the third, second and first quarters of 2021, the Company
repurchased an aggregate of 63,000, 386,195 and 116,037 shares of
Class B common stock, respectively, at a weighted average price per
share of $18.55, $16.62 and $15.98, respectively, under the Class B
Common Stock Repurchase Program. In the third quarter of 2021, the
Company’s Board of Directors terminated the Class B Common Stock
Repurchase Program. |
(7) |
In the first quarter of 2022 and fourth quarter of 2021, the
Company’s Board of Directors declared a cash dividend of $0.09 per
share of the Company’s common stock and $0.06 per share of the
Company’s common stock, respectively. The dividend declared in the
first quarter of 2022 was paid on February 28, 2022 to shareholders
of record at the close of business on February 11, 2022. The
dividend declared in the fourth quarter of 2021 was paid on or
before January 15, 2022 to holders of record as of December 22,
2021. The aggregate amount paid in connection with these dividends
in the first quarter of 2022 and the fourth quarter of 2021 was
$3.2 million and $2.2 million, respectively. |
(8) |
Assets held for clients in an agency or fiduciary capacity which
are not assets of the Company and therefore are not included in the
consolidated financial statements. |
(9) |
In the three months ended March 31, 2022, December 31, 2021,
September 30, 2021 and June 30, 2021, net income exclude losses of
$1.1 million, $1.2 million, $0.6 million, $0.8 million,
respectively, attributable to a 49% minority interest of Amerant
Mortgage LLC. There was no minority interest at March 31, 2021.
Beginning March 31, 2022, the minority interest share changed from
49% to 42.6%. This change had no impact to the Company’s financial
condition or results of operations as of and for the first quarter
ended March 31, 2022. |
(10) |
This presentation contains adjusted financial information
determined by methods other than GAAP. This adjusted financial
information is reconciled to GAAP in Exhibit 2 - Non-GAAP Financial
Measures Reconciliation. |
(11) |
In all the periods shown, potential dilutive instruments consisted
of unvested shares of restricted stock, restricted stock units and
performance share units. For all other periods presented, potential
dilutive instruments were included in the diluted earnings per
share computation because, when the unamortized deferred
compensation cost related to these shares was divided by the
average market price per share in those periods, fewer shares would
have been purchased than restricted shares assumed issued.
Therefore, in those periods, such awards resulted in higher diluted
weighted average shares outstanding than basic weighted average
shares outstanding, and had a dilutive effect in per share
earnings. |
(12) |
Operating data for the periods presented have been annualized. |
(13) |
NIM is defined as NII divided by average interest-earning assets,
which are loans, securities, deposits with banks and other
financial assets which yield interest or similar income. |
(14) |
Calculated based upon the average daily balance of total
assets. |
(15) |
Calculated based upon the average daily balance of stockholders’
equity. |
(16) |
Total revenue is the result of net interest income before provision
for loan losses plus noninterest income. |
(17) |
Total stockholders’ equity divided by total risk-weighted assets,
calculated according to the standardized regulatory capital ratio
calculations. |
(18) |
Tier 1 capital divided by total risk-weighted assets. Tier 1
capital is composed of Common Equity Tier 1 (CET1) capital plus
outstanding qualifying trust preferred securities of $62.3 million
at each of all the dates presented. |
(19) |
Tier 1 capital divided by quarter to date average assets. |
(20) |
CET1 capital divided by total risk-weighted assets. |
(21) |
Tangible common equity is calculated as the ratio of common equity
less goodwill and other intangibles divided by total assets less
goodwill and other intangible assets. Other intangible assets
consist of, among other things, mortgage servicing rights and are
included in other assets in the Company’s consolidated balance
sheets. |
(22) |
Non-performing assets include all accruing loans past due by 90
days or more, all nonaccrual loans, restructured loans that are
considered “troubled debt restructurings” or “TDRs”, and OREO
properties acquired through or in lieu of foreclosure. |
(23) |
Non-performing loans include all accruing loans past due by 90 days
or more, all nonaccrual loans and restructured loans that are
considered TDRs. |
(24) |
Calculated based upon the average daily balance of outstanding loan
principal balance net of unamortized deferred loan origination fees
and costs, excluding the allowance for loan losses. During the
first quarter of 2022, and the fourth, third and second quarters of
2021, there were net charge offs of $3.8 million, $7.0 million,
$15.7 million, $1.8 million and $5.9 million, respectively. In the
first quarter of 2021, there were zero net charge offs. During the
first quarter of 2022, the Company charged-off $3.3 million in two
commercial loans, including $2.5 million related to a nonaccrual
loan paid off during the period. During the fourth quarter of 2021,
the Company charged-off an aggregate of $4.2 million related to
various commercial loans and $1.8 million related to one real
estate loan. During the third quarter of 2021, the Company
charged-off $5.7 million against the allowance for loan losses as
result of the deterioration of one commercial loan
relationship. |
(25) |
Other operating expenses is the result of total noninterest expense
less salary and employee benefits. |
(26) |
Efficiency ratio is the result of noninterest expense divided by
the sum of noninterest income and NII. |
(27) |
As of March 31, 2022, December 31, 2021, September 30, 2021 and
June 30, 2021, includes 79, 72, 52 and 38 FTEs for Amerant Mortgage
LLC, respectively. In addition, effective January 1, 2022, there
were 80 employees who are no longer working for the Company as a
result of the new agreement with Fidelity National Information
Services, Inc.(“FIS”). |
(28) |
Core efficiency ratio is the efficiency ratio less the effect of
restructuring costs and other adjustments, described in Exhibit 2 -
Non-GAAP Financial Measures Reconciliation. |
|
|
Exhibit 2- Non-GAAP Financial Measures
Reconciliation
The following table sets forth selected financial information
derived from the Company’s interim unaudited and annual audited
consolidated financial statements, adjusted for certain costs
incurred by the Company in the periods presented related to tax
deductible restructuring costs, provision for (reversal of) loan
losses, provision for income tax expense (benefit), the effect of
non-core banking activities such as the sale of loans and
securities, the valuation of securities, derivatives and loans held
for sale, the sale and leaseback of our corporate headquarters in
the fourth quarter of 2021, and other non-recurring actions
intended to improve customer service and operating performance. The
Company believes these adjusted numbers are useful to understand
the Company’s performance absent these transactions and events.
|
Three Months Ended, |
(in thousands) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Amerant Bancorp Inc. |
$ |
15,950 |
|
|
$ |
65,469 |
|
|
$ |
17,031 |
|
|
$ |
15,962 |
|
|
$ |
14,459 |
|
Plus: (reversal of) provision
for loan losses |
|
(10,000 |
) |
|
|
(6,500 |
) |
|
|
(5,000 |
) |
|
|
(5,000 |
) |
|
|
— |
|
Plus: provision for income tax
expense (1) |
|
3,978 |
|
|
|
20,172 |
|
|
|
5,454 |
|
|
|
4,435 |
|
|
|
3,648 |
|
Pre-provision net revenue
(PPNR) |
|
9,928 |
|
|
|
79,141 |
|
|
|
17,485 |
|
|
|
15,397 |
|
|
|
18,107 |
|
Plus: non-routine noninterest
expense items |
|
6,574 |
|
|
|
1,895 |
|
|
|
758 |
|
|
|
4,164 |
|
|
|
240 |
|
Less: non-routine noninterest
income items |
|
1,367 |
|
|
|
(62,125 |
) |
|
|
54 |
|
|
|
(2,627 |
) |
|
|
(2,582 |
) |
Core pre-provision net
revenue (Core PPNR) |
$ |
17,869 |
|
|
$ |
18,911 |
|
|
$ |
18,297 |
|
|
$ |
16,934 |
|
|
$ |
15,765 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
$ |
14,025 |
|
|
$ |
77,290 |
|
|
$ |
13,434 |
|
|
$ |
15,734 |
|
|
$ |
14,163 |
|
Less: Non-routine noninterest
income items: |
|
|
|
|
|
|
|
|
|
Less: gain on sale of Headquarters building (1) |
|
— |
|
|
|
62,387 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Derivatives losses, net |
|
(1,345 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Securities gains (losses), net |
|
769 |
|
|
|
(117 |
) |
|
|
(54 |
) |
|
|
1,329 |
|
|
|
2,582 |
|
Loss on early extinguishment of FHLB advances, net |
|
(714 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,488 |
) |
|
|
— |
|
(Loss) gain on sale of loans |
|
(77 |
) |
|
|
(145 |
) |
|
|
— |
|
|
|
3,786 |
|
|
|
— |
|
Total non-routine noninterest income items |
$ |
(1,367 |
) |
|
$ |
62,125 |
|
|
$ |
(54 |
) |
|
$ |
2,627 |
|
|
$ |
2,582 |
|
Core noninterest
income |
$ |
15,392 |
|
|
$ |
15,165 |
|
|
$ |
13,488 |
|
|
$ |
13,107 |
|
|
$ |
11,581 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
expenses |
$ |
60,818 |
|
|
$ |
55,088 |
|
|
$ |
48,404 |
|
|
$ |
51,125 |
|
|
$ |
43,625 |
|
Less: non-routine noninterest expense items |
|
|
|
|
|
|
|
|
|
Restructuring costs (2): |
|
|
|
|
|
|
|
|
|
Staff reduction costs (3) |
|
765 |
|
|
|
26 |
|
|
|
250 |
|
|
|
3,322 |
|
|
|
6 |
|
Contract termination costs (4) |
|
4,012 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Legal and Consulting fees (5) |
|
1,246 |
|
|
|
1,277 |
|
|
|
412 |
|
|
|
— |
|
|
|
— |
|
Digital transformation expenses |
|
45 |
|
|
|
50 |
|
|
|
96 |
|
|
|
32 |
|
|
|
234 |
|
Lease impairment charge |
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
810 |
|
|
|
— |
|
Branch closure expenses (6) |
|
33 |
|
|
|
542 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total restructuring costs |
$ |
6,115 |
|
|
$ |
1,895 |
|
|
$ |
758 |
|
|
$ |
4,164 |
|
|
$ |
240 |
|
Other non-routine noninterest expense items: |
|
|
|
|
|
|
|
|
|
Loans held for sale valuation expense (7) |
|
459 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-routine noninterest expense items |
$ |
6,574 |
|
|
$ |
1,895 |
|
|
$ |
758 |
|
|
$ |
4,164 |
|
|
$ |
240 |
|
Core noninterest
expenses |
$ |
54,244 |
|
|
$ |
53,193 |
|
|
$ |
47,646 |
|
|
$ |
46,961 |
|
|
$ |
43,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
percentages and per share amounts) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Net income attributable to
Amerant Bancorp Inc. |
$ |
15,950 |
|
|
$ |
65,469 |
|
|
$ |
17,031 |
|
|
$ |
15,962 |
|
|
$ |
14,459 |
|
Plus after-tax non-routine
items in noninterest expense: |
|
|
|
|
|
|
|
|
|
Non-routine items in
noninterest expense before income tax effect |
|
6,574 |
|
|
|
1,895 |
|
|
|
758 |
|
|
|
4,164 |
|
|
|
240 |
|
Income tax effect (8) |
|
(1,387 |
) |
|
|
(478 |
) |
|
|
(229 |
) |
|
|
(897 |
) |
|
|
(48 |
) |
Total after-tax non-routine
items in noninterest expense |
|
5,187 |
|
|
|
1,417 |
|
|
|
529 |
|
|
|
3,267 |
|
|
|
192 |
|
Plus after-tax non-routine
items in noninterest income: |
|
|
|
|
|
|
|
|
|
Non-routine items in
noninterest income before income tax effect |
|
1,367 |
|
|
|
(62,125 |
) |
|
|
54 |
|
|
|
(2,627 |
) |
|
|
(2,582 |
) |
Income tax effect (8) |
|
(288 |
) |
|
|
14,578 |
|
|
|
55 |
|
|
|
597 |
|
|
|
520 |
|
Total after-tax non-routine
items in noninterest income |
|
1,079 |
|
|
|
(47,547 |
) |
|
|
109 |
|
|
|
(2,030 |
) |
|
|
(2,062 |
) |
Core net
income |
$ |
22,216 |
|
|
$ |
19,339 |
|
|
$ |
17,669 |
|
|
$ |
17,199 |
|
|
$ |
12,589 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.46 |
|
|
$ |
1.79 |
|
|
$ |
0.46 |
|
|
$ |
0.43 |
|
|
$ |
0.38 |
|
Plus: after tax impact of
non-routine items in noninterest expense |
|
0.15 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.01 |
|
Less: after tax impact of
non-routine items in noninterest income |
|
0.03 |
|
|
|
(1.30 |
) |
|
|
— |
|
|
|
(0.06 |
) |
|
|
(0.06 |
) |
Total core basic
earnings per common share |
$ |
0.64 |
|
|
$ |
0.53 |
|
|
$ |
0.48 |
|
|
$ |
0.46 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(9) |
$ |
0.45 |
|
|
$ |
1.77 |
|
|
$ |
0.45 |
|
|
$ |
0.42 |
|
|
$ |
0.38 |
|
Plus: after tax impact of
non-routine items in noninterest expense |
|
0.15 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.01 |
|
Less: after tax impact of
non-routine items in noninterest income |
|
0.03 |
|
|
|
(1.29 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
|
(0.06 |
) |
Total core diluted
earnings per common share |
$ |
0.63 |
|
|
$ |
0.52 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
Net income / Average total
assets (ROA) |
|
0.84 |
% |
|
|
3.45 |
% |
|
|
0.90 |
% |
|
|
0.83 |
% |
|
|
0.76 |
% |
Plus: after tax impact of
non-routine items in noninterest expense |
|
0.27 |
% |
|
|
0.07 |
% |
|
|
0.02 |
% |
|
|
0.17 |
% |
|
|
0.01 |
% |
Less: after tax impact of
non-routine items in noninterest income |
|
0.06 |
% |
|
(2.50)% |
|
|
0.01 |
% |
|
(0.10)% |
|
(0.11)% |
Core net income /
Average total assets (Core ROA) |
|
1.17 |
% |
|
|
1.02 |
% |
|
|
0.93 |
% |
|
|
0.90 |
% |
|
|
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
Net income / Average
stockholders' equity (ROE) |
|
8.10 |
% |
|
|
32.04 |
% |
|
|
8.38 |
% |
|
|
8.11 |
% |
|
|
7.47 |
% |
Plus: after tax impact of
non-routine items in noninterest expense |
|
2.63 |
% |
|
|
0.69 |
% |
|
|
0.26 |
% |
|
|
1.66 |
% |
|
|
0.10 |
% |
Less: after tax impact of
non-routine items in noninterest income |
|
0.55 |
% |
|
(23.27)% |
|
|
0.05 |
% |
|
(1.03)% |
|
(1.07)% |
Core net income /
Average stockholders' equity (Core ROE) |
|
11.28 |
% |
|
|
9.46 |
% |
|
|
8.69 |
% |
|
|
8.74 |
% |
|
|
6.50 |
% |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
87.29 |
% |
|
|
41.40 |
% |
|
|
74.18 |
% |
|
|
77.81 |
% |
|
|
70.67 |
% |
Less: impact of non-routine
items in noninterest expense |
(9.43)% |
|
(1.43)% |
|
(1.16)% |
|
(6.34)% |
|
(0.39)% |
Plus: impact of non-routine
items in noninterest income |
(1.50)% |
|
|
35.01 |
% |
|
(0.07)% |
|
|
2.98 |
% |
|
|
3.07 |
% |
Core efficiency
ratio |
|
76.36 |
% |
|
|
74.98 |
% |
|
|
72.95 |
% |
|
|
74.45 |
% |
|
|
73.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended, |
(in thousands, except
percentages, share data and per share amounts) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
$ |
749,396 |
|
|
$ |
831,873 |
|
|
$ |
812,662 |
|
|
$ |
799,068 |
|
|
$ |
785,014 |
|
Less: goodwill and other
intangibles (10) |
|
(22,795 |
) |
|
|
(22,528 |
) |
|
|
(22,529 |
) |
|
|
(22,505 |
) |
|
|
(21,515 |
) |
Tangible common stockholders'
equity |
$ |
726,601 |
|
|
$ |
809,345 |
|
|
$ |
790,133 |
|
|
$ |
776,563 |
|
|
$ |
763,499 |
|
Total assets |
|
7,805,836 |
|
|
|
7,638,399 |
|
|
|
7,489,305 |
|
|
|
7,532,844 |
|
|
|
7,751,098 |
|
Less: goodwill and other
intangibles (10) |
|
(22,795 |
) |
|
|
(22,528 |
) |
|
|
(22,529 |
) |
|
|
(22,505 |
) |
|
|
(21,515 |
) |
Tangible assets |
$ |
7,783,041 |
|
|
$ |
7,615,871 |
|
|
$ |
7,466,776 |
|
|
$ |
7,510,339 |
|
|
$ |
7,729,583 |
|
Common shares outstanding |
|
34,350,822 |
|
|
|
35,883,320 |
|
|
|
37,487,339 |
|
|
|
37,562,792 |
|
|
|
37,921,961 |
|
Tangible common equity
ratio |
|
9.34 |
% |
|
|
10.63 |
% |
|
|
10.58 |
% |
|
|
10.34 |
% |
|
|
9.88 |
% |
Stockholders' book
value per common share |
$ |
21.82 |
|
|
$ |
23.18 |
|
|
$ |
21.68 |
|
|
$ |
21.27 |
|
|
$ |
20.70 |
|
Tangible stockholders'
book value per common share |
$ |
21.15 |
|
|
$ |
22.55 |
|
|
$ |
21.08 |
|
|
$ |
20.67 |
|
|
$ |
20.13 |
|
____________ |
(1) |
The Company sold its Coral Gables headquarters for $135 million,
with an approximate carrying value of $69.9 million at the time of
sale and transaction costs of $2.6 million. The Company leased-back
the property for an 18-year term. The provision for income tax
expense includes around $16.1 million related to this transaction
in the three months ended December 31, 2021. |
(2) |
Expenses incurred for actions designed to implement the Company’s
strategy. These actions include, but are not limited to reductions
in workforce, streamlining operational processes, rolling out the
Amerant brand, implementation of new technology system
applications, decommissioning of legacy technologies, enhanced
sales tools and training, expanded product offerings and improved
customer analytics to identify opportunities. |
(3) |
In the first quarter of 2022, includes expenses mainly in
connection with restructuring of business lines and the outsourcing
of certain human resources functions. In the second quarter of
2021, includes expenses in connection with the departure of the
Company’s Chief Operating Officer and the elimination of various
other support function positions, including the NY LPO. In all of
the other periods shown, includes expenses related to the
elimination of various support function positions. |
(4) |
Contract termination and related costs associated with third party
vendors resulting from the Company’s engagement of FIS. |
(5) |
Includes: (i) expenses in connection with the engagement of FIS of
$0.8 million, $0.5 million and $0.2 million in the three months
ended March 31, 2022, December 31, 2021 and September 30, 2021,
respectively; (ii) an aggregate of $0.3 million in connection with
information technology projects, and certain search and recruitment
expenses in the three months ended March 31, 2022, and (iii)
expenses in connection with the Merger and related transactions of
$0.6 million and $0.2 million in the three months ended December
31, 2021 and September 30, 2021, respectively. |
(6) |
Expenses related to the lease termination of a branch in Fort
Lauderdale, Florida in 2021 and in Wellington, Florida in
2022. |
(7) |
Fair value adjustment related to the New York loan portfolio held
for sale carried at the lower of cost or fair value. |
(8) |
In the three months ended March 31, 2022 and 2021, amounts were
calculated based upon the effective tax rate for the periods of
21.10% and 20.15%, respectively. For all of the other periods
shown, amounts represent the difference between the prior and
current period year-to-date tax effect. |
(9) |
In the three months ended March 31, 2022, December 31, 2021,
September 30, 2021 and June 30, 2021, potential dilutive
instruments consisted of unvested shares of restricted stock,
restricted stock units and performance share units (restricted
stock and restricted stock units in the three months ended March
31, 2021). In all the periods presented, potential dilutive
instruments were included in the diluted earnings per share
computation because, when the unamortized deferred compensation
cost related to these shares was divided by the average market
price per share in those periods, fewer shares would have been
purchased than restricted shares assumed issued. Therefore, in
those periods, such awards resulted in higher diluted weighted
average shares outstanding than basic weighted average shares
outstanding, and had a dilutive effect in per share earnings. |
(10) |
Other intangible assets consist of, among other things, mortgage
servicing rights (“MSRs”) of $0.9 million, $0.6 million, $0.6
million and $0.5 million at March 31, 2022, December 31, 2021,
September 30, 2021 and June 30 2021, respectively, and are included
in other assets in the Company’s consolidated balance sheets. We
had no MSRs at March 31, 2021. |
|
|
Exhibit 3 - Average Balance Sheet,
Interest and Yield/Rate Analysis
The following tables present average balance sheet information,
interest income, interest expense and the corresponding average
yields earned and rates paid for the periods presented. The average
balances for loans include both performing and nonperforming
balances. Interest income on loans includes the effects of discount
accretion and the amortization of non-refundable loan origination
fees, net of direct loan origination costs, accounted for as yield
adjustments. Average balances represent the daily average balances
for the periods presented.
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
(in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
Average Balances |
Income/Expense |
Yield/ Rates |
|
Average Balances |
Income/Expense |
Yield/ Rates |
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio, net (1)(2) |
$ |
5,492,547 |
|
$ |
56,338 |
4.16 |
% |
|
$ |
5,475,207 |
|
$ |
56,521 |
4.10 |
% |
|
$ |
5,678,547 |
$ |
52,771 |
3.77 |
% |
Debt securities available for sale (3) |
|
1,170,491 |
|
|
7,378 |
2.56 |
% |
|
|
1,171,691 |
|
|
7,010 |
2.37 |
% |
|
|
1,207,764 |
|
6,495 |
2.18 |
% |
Debt securities held to maturity (4) |
|
114,655 |
|
|
703 |
2.49 |
% |
|
|
121,842 |
|
|
745 |
2.43 |
% |
|
|
67,729 |
|
302 |
1.81 |
% |
Debt securities held for trading |
|
35 |
|
|
1 |
11.59 |
% |
|
|
143 |
|
|
1 |
2.77 |
% |
|
|
104 |
|
1 |
3.90 |
% |
Equity securities with readily determinable fair value not held for
trading |
|
1,301 |
|
|
— |
— |
% |
|
|
17,138 |
|
|
59 |
1.37 |
% |
|
|
24,225 |
|
84 |
1.41 |
% |
Federal Reserve Bank and FHLB stock |
|
51,505 |
|
|
546 |
4.30 |
% |
|
|
49,591 |
|
|
535 |
4.28 |
% |
|
|
63,781 |
|
625 |
3.97 |
% |
Deposits with banks |
|
259,225 |
|
|
132 |
0.21 |
% |
|
|
155,479 |
|
|
58 |
0.15 |
% |
|
|
205,355 |
|
51 |
0.10 |
% |
Total interest-earning assets |
|
7,089,759 |
|
|
65,098 |
3.72 |
% |
|
|
6,991,091 |
|
|
64,929 |
3.68 |
% |
|
|
7,247,505 |
|
60,329 |
3.38 |
% |
Total
non-interest-earning assets less allowance for loan
losses |
|
616,872 |
|
|
|
|
537,549 |
|
|
|
|
498,754 |
|
|
Total assets |
$ |
7,706,631 |
|
|
|
$ |
7,528,640 |
|
|
|
$ |
7,746,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
(in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
AverageBalances |
Income/ Expense |
Yield/ Rates |
|
Average Balances |
Income/Expense |
Yield/ Rates |
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Checking and saving accounts
- |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing DDA |
$ |
1,556,480 |
|
$ |
290 |
0.08 |
% |
|
$ |
1,342,416 |
|
$ |
208 |
0.06 |
% |
|
$ |
1,258,301 |
|
$ |
113 |
0.04 |
% |
Money market |
|
1,253,293 |
|
|
734 |
0.24 |
% |
|
|
1,337,529 |
|
|
788 |
0.23 |
% |
|
|
1,236,026 |
|
|
966 |
0.32 |
% |
Savings |
|
325,121 |
|
|
11 |
0.01 |
% |
|
|
327,090 |
|
|
11 |
0.01 |
% |
|
|
318,800 |
|
|
14 |
0.02 |
% |
Total checking and saving
accounts |
|
3,134,894 |
|
|
1,035 |
0.13 |
% |
|
|
3,007,035 |
|
|
1,007 |
0.13 |
% |
|
|
2,813,127 |
|
|
1,093 |
0.16 |
% |
Time deposits |
|
1,295,278 |
|
|
4,281 |
1.34 |
% |
|
|
1,380,337 |
|
|
4,777 |
1.37 |
% |
|
|
1,956,559 |
|
|
7,360 |
1.53 |
% |
Total deposits |
|
4,430,172 |
|
|
5,316 |
0.49 |
% |
|
|
4,387,372 |
|
|
5,784 |
0.52 |
% |
|
|
4,769,686 |
|
|
8,453 |
0.72 |
% |
Securities sold under
agreements to repurchase |
|
— |
|
|
— |
— |
% |
|
|
55 |
|
|
— |
— |
% |
|
|
— |
|
|
— |
— |
% |
Advances from the FHLB and
other borrowings (5) |
|
917,039 |
|
|
2,481 |
1.10 |
% |
|
|
863,137 |
|
|
1,805 |
0.83 |
% |
|
|
1,050,000 |
|
|
2,758 |
1.07 |
% |
Senior notes |
|
58,934 |
|
|
942 |
6.48 |
% |
|
|
58,855 |
|
|
942 |
6.35 |
% |
|
|
58,618 |
|
|
942 |
6.52 |
% |
Subordinated notes |
|
7,451 |
|
|
88 |
4.79 |
% |
|
|
— |
|
|
— |
— |
% |
|
|
— |
|
|
— |
— |
% |
Junior subordinated
debentures |
|
64,178 |
|
|
626 |
3.96 |
% |
|
|
64,178 |
|
|
618 |
3.82 |
% |
|
|
64,178 |
|
|
607 |
3.84 |
% |
Total interest-bearing
liabilities |
|
5,477,774 |
|
|
9,453 |
0.70 |
% |
|
|
5,373,597 |
|
|
9,149 |
0.68 |
% |
|
|
5,942,482 |
|
|
12,760 |
0.87 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand
deposits |
|
1,199,264 |
|
|
|
|
|
1,210,365 |
|
|
|
|
|
925,266 |
|
|
|
Accounts payable, accrued
liabilities and other liabilities |
|
231,088 |
|
|
|
|
|
133,927 |
|
|
|
|
|
93,450 |
|
|
|
Total non-interest-bearing
liabilities |
|
1,430,352 |
|
|
|
|
|
1,344,292 |
|
|
|
|
|
1,018,716 |
|
|
|
Total liabilities |
|
6,908,126 |
|
|
|
|
|
6,717,889 |
|
|
|
|
|
6,961,198 |
|
|
|
Stockholders’ equity |
|
798,505 |
|
|
|
|
|
810,751 |
|
|
|
|
|
785,061 |
|
|
|
Total liabilities and
stockholders' equity |
$ |
7,706,631 |
|
|
|
|
$ |
7,528,640 |
|
|
|
|
$ |
7,746,259 |
|
|
|
Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,611,985 |
|
|
|
|
$ |
1,617,494 |
|
|
|
|
$ |
1,305,023 |
|
|
|
Net interest
income |
|
$ |
55,645 |
|
|
|
$ |
55,780 |
|
|
|
$ |
47,569 |
|
Net interest rate spread |
|
|
3.02 |
% |
|
|
|
3.00 |
% |
|
|
|
2.51 |
% |
Net interest margin (6) |
|
|
3.18 |
% |
|
|
|
3.17 |
% |
|
|
|
2.66 |
% |
Cost of total deposits
(7) |
|
|
0.38 |
% |
|
|
|
0.41 |
% |
|
|
|
0.60 |
% |
Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
129.43 |
% |
|
|
|
|
130.10 |
% |
|
|
|
|
121.96 |
% |
|
|
Average non-performing loans/
Average total loans |
|
0.71 |
% |
|
|
|
|
1.13 |
% |
|
|
|
|
1.54 |
% |
|
|
___________ |
(1) |
Includes loans held for investment net of the allowance for loan
losses and loans held for sale. The average balance of the
allowance for loan losses was $67.5 million, $82.1 million, and
$111.1 million in the three months ended March 31, 2022, December
31, 2021 and March 31, 2021, respectively.The average balance of
total loans held for sale was $137.7 million, $206.8 million,
and $128 thousand in the three months ended March 31, 2022,
December 31, 2021 and March 31, 2021, respectively. |
(2) |
Includes average non-performing loans of $39.2 million, $63.0
million and $89.2 million for the three months ended March 31,
2022, December 31, 2021 and March 31, 2021, respectively. |
(3) |
Includes nontaxable securities with average balances of $16.2
million, $17.7 million and $54.7 million for the three months ended
March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
The tax equivalent yield for these nontaxable securities was 2.81%,
1.79% and 3.80% for the three months ended March 31, 2022, December
31, 2021 and March 31, 2021, respectively. In 2022 and 2021, the
tax equivalent yields were calculated by assuming a 21% tax rate
and dividing the actual yield by 0.79. |
(4) |
Includes nontaxable securities with average balances of $37.8
million, $44.3 million and $56.6 million for the three months ended
March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
The tax equivalent yield for these nontaxable securities was 3.67%,
3.06% and 2.40% for the three months ended March 31, 2022, December
31, 2021 and March 31, 2021. In 2022 and 2021, the tax equivalent
yields were calculated assuming a 21% tax rate and dividing the
actual yield by 0.79. |
(5) |
The terms of the FHLB advance agreements require the Bank to
maintain certain investment securities or loans as collateral for
these advances. |
(6) |
NIM is defined as net interest income divided by average
interest-earning assets, which are loans, securities, deposits with
banks and other financial assets which yield interest or similar
income. |
(7) |
Calculated based upon the average balance of total noninterest
bearing and interest bearing deposits. |
|
|
Exhibit 4 - Noninterest
Income
This table shows
the amounts of each of the categories of noninterest income for the
periods presented.
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
(in thousands, except
percentages) |
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
|
Deposits and service fees |
$ |
4,620 |
|
|
32.9 |
% |
|
$ |
4,521 |
|
|
5.9 |
% |
|
$ |
4,106 |
|
29.0 |
% |
Brokerage, advisory and
fiduciary activities |
|
4,596 |
|
|
32.8 |
% |
|
|
4,987 |
|
|
6.5 |
% |
|
|
4,603 |
|
32.5 |
% |
Change in cash surrender value
of bank owned life insurance (“BOLI”)(1) |
|
1,342 |
|
|
9.6 |
% |
|
|
1,366 |
|
|
1.8 |
% |
|
|
1,356 |
|
9.6 |
% |
Cards and trade finance
servicing fees |
|
590 |
|
|
4.2 |
% |
|
|
503 |
|
|
0.7 |
% |
|
|
339 |
|
2.4 |
% |
Loss on early extinguishment
of FHLB advances, net |
|
(714 |
) |
|
(5.1)% |
|
|
— |
|
|
— |
% |
|
|
— |
|
— |
% |
Gain on sale of Headquarters
Building (2) |
|
— |
|
|
— |
% |
|
|
62,387 |
|
|
80.7 |
% |
|
|
— |
|
— |
% |
Securities gains (losses), net
(3) |
|
769 |
|
|
5.5 |
% |
|
|
(117 |
) |
|
(0.2)% |
|
|
2,582 |
|
18.2 |
% |
Derivative losses, net
(4) |
|
(1,345 |
) |
|
(9.6)% |
|
|
— |
|
|
— |
% |
|
|
— |
|
— |
% |
Loan-level derivative income
(5) |
|
3,152 |
|
|
22.5 |
% |
|
|
1,973 |
|
|
2.6 |
% |
|
|
232 |
|
1.6 |
% |
Other noninterest income
(6)(7) |
|
1,015 |
|
|
7.2 |
% |
|
|
1,670 |
|
|
2.0 |
% |
|
|
945 |
|
6.7 |
% |
Total noninterest income |
$ |
14,025 |
|
|
100.0 |
% |
|
$ |
77,290 |
|
|
100.0 |
% |
|
$ |
14,163 |
|
100.0 |
% |
__________________ |
(1) |
Changes in cash surrender value of BOLI are not taxable. |
(2) |
The Company sold its Coral Gables headquarters for $135 million,
with an approximate carrying value of $69.9 million at the time of
sale and transaction costs of $2.6 million. The Company leased-back
the property for an 18-year term. |
(3) |
Includes: (i) net gain on sale of debt securities of $49 thousand,
$37 thousand and $2.9 million in the three months ended March 31,
2022, December 31, 2021 and March 31, 2021, respectively, and (iii)
unrealized gains of $0.7 million in the three months ended
March 31, 2022 and unrealized losses of $0.1 million and $0.4
million in the three months ended December 31, 2021 and March 31,
2021, respectively, related to the change in fair value of
marketable equity securities. In addition, the three months ended
December 31, 2021 includes a realized loss of $42 thousand on the
sale of a mutual fund with a fair value of $23.4 million at the
time of the sale. |
(4) |
Unrealized losses related to uncovered interest rate swaps with
clients. |
(5) |
Income from interest rate swaps and other derivative transactions
with customers. In three months ended March 31, 2022 and December
31, 2021, the Company incurred in expenses related to derivative
transactions with customers of $1.0 million and $0.7 million,
respectively, which are included as part of noninterest expenses
under professional and other services fees. We had no expenses
associated with derivative transactions with customers in the three
months ended March 31, 2021. |
(6) |
Includes mortgage banking revenue related to Amerant Mortgage of
$0.8 million and $0.9 million in the three months ended March 31,
2022 and December 31 2021, respectively. Other sources of income in
the periods shown include from foreign currency exchange
transactions with customers and valuation income on the investment
balances held in the non-qualified deferred compensation plan. |
(7) |
In the three months ended March 31, 2022, rental income associated
with the subleasing of portions of the Company’s headquarters
building is presented as a reduction to rent expense under lease
agreements under occupancy and equipment cost. In all of the other
periods shown rental income in connection with the previously-owned
headquarters building is shown as part of other income. |
|
|
Exhibit 5 - Noninterest
Expense
This table shows the amounts of each of the categories of
noninterest expense for the periods presented.
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
(in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
|
Salaries and employee benefits (1) |
$ |
30,403 |
50.0 |
% |
|
$ |
31,309 |
56.8 |
% |
|
$ |
26,427 |
60.6 |
% |
Occupancy and equipment (2)
(3) |
|
6,725 |
11.1 |
% |
|
|
5,765 |
10.5 |
% |
|
|
4,488 |
10.3 |
% |
Professional and other
services fees (4) (5) |
|
7,182 |
11.8 |
% |
|
|
7,250 |
13.2 |
% |
|
|
3,784 |
8.7 |
% |
Telecommunications and data
processing |
|
4,038 |
6.6 |
% |
|
|
3,897 |
7.1 |
% |
|
|
3,727 |
8.5 |
% |
Depreciation and amortization
(6) |
|
1,152 |
1.9 |
% |
|
|
1,520 |
2.8 |
% |
|
|
1,786 |
4.1 |
% |
FDIC assessments and
insurance |
|
1,396 |
2.3 |
% |
|
|
1,340 |
2.4 |
% |
|
|
1,755 |
4.0 |
% |
Loans held for sale valuation
expense (7) |
|
459 |
0.8 |
% |
|
|
— |
— |
% |
|
|
— |
— |
% |
Advertising expenses |
|
2,972 |
4.9 |
% |
|
|
1,463 |
2.7 |
% |
|
|
316 |
0.7 |
% |
Contract termination costs
(8) |
|
4,012 |
6.6 |
% |
|
|
— |
— |
% |
|
|
— |
— |
% |
Other operating expenses
(9) |
|
2,479 |
4.0 |
% |
|
|
2,544 |
4.5 |
% |
|
|
1,342 |
3.1 |
% |
Total noninterest expense (10) |
$ |
60,818 |
100.0 |
% |
|
$ |
55,088 |
100.0 |
% |
|
$ |
43,625 |
100.0 |
% |
___________ |
(1) |
Includes severance expense of $0.8 million and $0.3 million in the
three months ended March 31, 2022 and December 31, 2021,
respectively, mainly in connection with the restructuring of
business lines and the elimination of certain support functions in
the three months ended March 31, 2022 and with the elimination of
various support function positions in the three months ended
December 31, 2021. There were no significant severance expenses in
the three months ended March 31, 2021. |
(2) |
In the three months ended March 31, 2022 and December 31, 2021,
includes $47 thousand and $0.5 million, respectively, related to
the lease termination of a branch in Fort Lauderdale, Florida in
2021. |
(3) |
In the three months ended March 31, 2022, rent expense under lease
agreements is presented net of rental income associated with the
subleasing of portions of the Company’s headquarters building. In
all of the other periods shown rental income in connection with the
previously-owned headquarters building is shown as part of other
income. |
(4) |
In the three months ended March 31, 2022, includes additional
expenses of $1.2 million, including (i) $0.8 million related to the
engagement of FIS; (ii) $0.2 million in connection with certain
search and recruitment expenses, and (iii) $0.1 million of costs
associated with the subleasing of the NY office space. In the three
months ended December 31, 2021, includes additional expenses of
$1.3 million mainly related to: (i) the Merger and related
transactions, and (ii) $0.5 million related to the engagement of
FIS. |
(5) |
Other services fees include expenses of $1.0 million and $0.7
million in the three months ended March 31, 2022 and December 31,
2021, respectively, in connection with our loan-level derivative
income generation activities. We had no expenses in connection with
our loan-level derivative income generation activities in the three
months ended March 31, 2021. |
(6) |
In the three months ended December 31, 2021 and March 31, 2021,
includes $0.2 million and $0.5 million, respectively, of
depreciation expense associated with the headquarters building. No
depreciation expense related to the headquarters building was
recorded in the three months ended March 31, 2022 as this property
was sold and leased-back in the fourth quarter of 2021. |
(7) |
Valuation allowance as a result of fair value adjustment related to
loans held for sale carried at the lower of fair value or
cost. |
(8) |
Contract termination and related costs associated with third party
vendors resulting from the Company’s engagement of FIS. |
(9) |
In all of the periods shown, includes charitable contributions,
community engagement, postage and courier expenses, provisions for
possible losses on contingent loans, and debits which mirror the
valuation income on the investment balances held in the
non-qualified deferred compensation plan in order to adjust the
liability to participants of the deferred compensation plan. |
(10) |
Includes $3.5 million and $3.3 million in the three months ended
March 31, 2022 and December 31, 2021, respectively, related to
Amerant Mortgage, primarily consisting of salaries and employee
benefits, mortgage lending costs and professional and other
services fees. |
|
|
Exhibit 6 - Consolidated Balance
Sheets
(in thousands, except share
data) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
35,242 |
|
|
$ |
33,668 |
|
|
$ |
27,501 |
|
|
$ |
45,198 |
|
|
$ |
37,744 |
Interest earning deposits with
banks |
|
234,709 |
|
|
|
240,540 |
|
|
|
138,732 |
|
|
|
126,314 |
|
|
|
195,755 |
Restricted cash |
|
6,243 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
Cash and cash equivalents |
|
276,194 |
|
|
|
274,208 |
|
|
|
166,233 |
|
|
|
171,512 |
|
|
|
233,499 |
Securities |
|
|
|
|
|
|
|
|
|
Debt securities available for
sale |
|
1,145,785 |
|
|
|
1,175,319 |
|
|
|
1,220,391 |
|
|
|
1,194,068 |
|
|
|
1,190,201 |
Debt securities held to
maturity |
|
112,008 |
|
|
|
118,175 |
|
|
|
130,543 |
|
|
|
93,311 |
|
|
|
104,657 |
Trading securities |
|
— |
|
|
|
— |
|
|
|
194 |
|
|
|
198 |
|
|
|
— |
Equity securities with readily
determinable fair value not held for trading |
|
13,370 |
|
|
|
252 |
|
|
|
23,870 |
|
|
|
23,988 |
|
|
|
23,965 |
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
53,806 |
|
|
|
47,495 |
|
|
|
47,740 |
|
|
|
47,675 |
|
|
|
56,469 |
Securities |
|
1,324,969 |
|
|
|
1,341,241 |
|
|
|
1,422,738 |
|
|
|
1,359,240 |
|
|
|
1,375,292 |
Loans held for sale, at lower
of cost or fair value (1) |
|
68,591 |
|
|
|
143,195 |
|
|
|
219,083 |
|
|
|
— |
|
|
|
— |
Mortgage loans held for sale,
at fair value |
|
17,108 |
|
|
|
14,905 |
|
|
|
5,812 |
|
|
|
1,775 |
|
|
|
1,044 |
Loans held for investment,
gross |
|
5,635,478 |
|
|
|
5,409,440 |
|
|
|
5,254,029 |
|
|
|
5,606,773 |
|
|
|
5,753,794 |
Less: Allowance for loan
losses |
|
56,051 |
|
|
|
69,899 |
|
|
|
83,442 |
|
|
|
104,185 |
|
|
|
110,940 |
Loans held for investment, net |
|
5,579,427 |
|
|
|
5,339,541 |
|
|
|
5,170,587 |
|
|
|
5,502,588 |
|
|
|
5,642,854 |
Bank owned life insurance |
|
224,348 |
|
|
|
223,006 |
|
|
|
221,640 |
|
|
|
220,271 |
|
|
|
218,903 |
Premises and equipment, net
(2) |
|
37,929 |
|
|
|
37,860 |
|
|
|
108,885 |
|
|
|
108,708 |
|
|
|
109,071 |
Deferred tax assets, net |
|
22,119 |
|
|
|
11,301 |
|
|
|
9,861 |
|
|
|
13,516 |
|
|
|
15,607 |
Operating lease right-of-use
assets (2) |
|
139,477 |
|
|
|
141,139 |
|
|
|
51,530 |
|
|
|
52,519 |
|
|
|
54,507 |
Goodwill |
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
Accrued interest receivable
and other assets |
|
96,168 |
|
|
|
92,497 |
|
|
|
93,430 |
|
|
|
83,209 |
|
|
|
80,815 |
Total assets |
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
|
$ |
7,532,844 |
|
|
$ |
7,751,098 |
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Demand |
|
|
|
|
|
|
|
|
|
Noninterest bearing |
$ |
1,318,294 |
|
|
$ |
1,183,251 |
|
|
$ |
1,210,154 |
|
|
$ |
1,065,622 |
|
|
$ |
977,595 |
Interest bearing |
|
1,543,708 |
|
|
|
1,507,441 |
|
|
|
1,317,938 |
|
|
|
1,293,626 |
|
|
|
1,324,127 |
Savings and money market |
|
1,581,412 |
|
|
|
1,602,339 |
|
|
|
1,655,495 |
|
|
|
1,682,619 |
|
|
|
1,494,227 |
Time |
|
1,248,287 |
|
|
|
1,337,840 |
|
|
|
1,442,790 |
|
|
|
1,633,041 |
|
|
|
1,882,130 |
Total deposits |
|
5,691,701 |
|
|
|
5,630,871 |
|
|
|
5,626,377 |
|
|
|
5,674,908 |
|
|
|
5,678,079 |
Advances from the Federal Home
Loan Bank |
|
980,047 |
|
|
|
809,577 |
|
|
|
809,095 |
|
|
|
808,614 |
|
|
|
1,050,000 |
Senior notes |
|
58,973 |
|
|
|
58,894 |
|
|
|
58,815 |
|
|
|
58,736 |
|
|
|
58,656 |
Subordinated notes |
|
29,156 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
Junior subordinated debentures
held by trust subsidiaries |
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
Operating lease Liabilities
(2) |
|
135,651 |
|
|
|
136,595 |
|
|
|
48,709 |
|
|
|
49,627 |
|
|
|
50,747 |
Accounts payable, accrued
liabilities and other liabilities |
|
96,734 |
|
|
|
106,411 |
|
|
|
69,469 |
|
|
|
77,713 |
|
|
|
64,424 |
Total liabilities |
|
7,056,440 |
|
|
|
6,806,526 |
|
|
|
6,676,643 |
|
|
|
6,733,776 |
|
|
|
6,966,084 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
Class A common stock |
|
3,434 |
|
|
|
3,589 |
|
|
|
2,903 |
|
|
|
2,904 |
|
|
|
2,904 |
Class B common stock |
|
— |
|
|
|
— |
|
|
|
847 |
|
|
|
853 |
|
|
|
892 |
Additional paid in
capital |
|
208,109 |
|
|
|
262,510 |
|
|
|
299,273 |
|
|
|
299,547 |
|
|
|
304,448 |
Retained earnings |
|
565,963 |
|
|
|
553,167 |
|
|
|
489,854 |
|
|
|
472,823 |
|
|
|
456,861 |
Accumulated other
comprehensive (loss) income |
|
(24,424 |
) |
|
|
15,217 |
|
|
|
21,236 |
|
|
|
23,758 |
|
|
|
19,909 |
Total stockholders' equity before noncontrolling interest |
|
753,082 |
|
|
|
834,483 |
|
|
|
814,113 |
|
|
|
799,885 |
|
|
|
785,014 |
Noncontrolling interest |
|
(3,686 |
) |
|
|
(2,610 |
) |
|
|
(1,451 |
) |
|
|
(817 |
) |
|
|
— |
Total stockholders' equity |
|
749,396 |
|
|
|
831,873 |
|
|
|
812,662 |
|
|
|
799,068 |
|
|
|
785,014 |
Total liabilities and stockholders' equity |
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
|
$ |
7,532,844 |
|
|
$ |
7,751,098 |
|
|
|
|
|
|
|
|
|
|
__________ |
(1) |
Includes a $0.5 million valuation allowance as a result of fair
value adjustment as of March 31, 2022. |
(2) |
As of March 31, 2022 and December 31, 2021, includes the effect of
the sale and lease back of the Company’s headquarters building in
the fourth quarter of 2021. |
|
|
Exhibit 7 - Loans
Loans by Type - Held For
Investment
The loan portfolio held for investment consists of the following
loan classes:
(in thousands) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Real estate loans |
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
1,570,006 |
|
$ |
1,540,590 |
|
$ |
1,593,664 |
|
$ |
1,699,876 |
|
$ |
1,713,967 |
Multi-family residential |
|
540,726 |
|
|
514,679 |
|
|
504,337 |
|
|
658,022 |
|
|
722,783 |
Land development and construction loans |
|
296,609 |
|
|
327,246 |
|
|
318,449 |
|
|
361,077 |
|
|
351,502 |
|
|
2,407,341 |
|
|
2,382,515 |
|
|
2,416,450 |
|
|
2,718,975 |
|
|
2,788,252 |
Single-family residential |
|
707,594 |
|
|
661,339 |
|
|
618,139 |
|
|
616,545 |
|
|
625,298 |
Owner occupied |
|
927,921 |
|
|
962,538 |
|
|
936,590 |
|
|
943,342 |
|
|
940,126 |
|
|
4,042,856 |
|
|
4,006,392 |
|
|
3,971,179 |
|
|
4,278,862 |
|
|
4,353,676 |
Commercial loans |
|
1,093,205 |
|
|
965,673 |
|
|
910,696 |
|
|
1,003,411 |
|
|
1,104,594 |
Loans to financial
institutions and acceptances |
|
13,730 |
|
|
13,710 |
|
|
13,690 |
|
|
13,672 |
|
|
16,658 |
Consumer loans and
overdrafts |
|
485,687 |
|
|
423,665 |
|
|
358,464 |
|
|
310,828 |
|
|
278,866 |
Total loans |
$ |
5,635,478 |
|
$ |
5,409,440 |
|
$ |
5,254,029 |
|
$ |
5,606,773 |
|
$ |
5,753,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Type - Held For Sale
The loan portfolio held for sale consists of the following loan
classes:
(in thousands) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Loans held for sale at
the lower of cost or fair value |
|
|
|
|
|
|
|
|
|
Real estate loans |
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
46,947 |
|
$ |
110,271 |
|
$ |
160,034 |
|
$ |
— |
|
$ |
— |
Multi-family residential |
|
20,796 |
|
|
31,606 |
|
|
57,725 |
|
|
— |
|
|
— |
|
|
67,743 |
|
|
141,877 |
|
|
217,759 |
|
|
— |
|
|
— |
Single-family residential |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,044 |
Owner occupied |
|
1,306 |
|
|
1,318 |
|
|
1,324 |
|
|
— |
|
|
— |
Total real estate loans |
|
69,049 |
|
|
143,195 |
|
|
219,083 |
|
|
— |
|
|
1,044 |
Less: valuation allowance |
|
458 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Total loans held for sale at
the lower of cost or fair value (1) |
|
68,591 |
|
|
143,195 |
|
|
219,083 |
|
|
— |
|
|
1,044 |
|
|
|
|
|
|
|
|
|
|
Loans held for sale at
fair value |
|
|
|
|
|
|
|
|
|
Land development and construction loans |
|
836 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Single-family residential |
|
16,272 |
|
|
14,905 |
|
|
5,812 |
|
|
1,775 |
|
|
Total loans held for sale at
fair value (2) |
|
17,108 |
|
|
14,905 |
|
|
5,812 |
|
|
1,775 |
|
|
— |
Total loans held for sale
(3) |
$ |
85,699 |
|
$ |
158,100 |
|
$ |
224,895 |
|
$ |
1,775 |
|
$ |
1,044 |
__________________ |
(1) |
During the three months ended March 31, 2022 and December 31, 2021,
the Company sold $57.3 million and $49.4 million in loans held for
sale carried at the lower of cost or estimated fair value related
to the NY portfolio. |
(2) |
Loans held for sale in connection with Amerant Mortgage ongoing
business. |
(3) |
Remained current and in accrual status at each of the periods
shown. |
|
|
Non-Performing Assets
This table shows a summary of our non-performing assets by loan
class, which includes non-performing loans and other real estate
owned, or OREO, at the dates presented. Non-performing loans
consist of (i) nonaccrual loans; (ii) accruing loans 90
days or more contractually past due as to interest or principal;
and (iii) restructured loans that are considered TDRs.
(in thousands) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
Non-Accrual
Loans(1) |
|
|
|
|
|
|
|
|
|
Real Estate Loans |
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
12,825 |
|
$ |
7,285 |
|
$ |
28,507 |
|
$ |
48,347 |
|
$ |
8,515 |
Multi-family residential |
|
— |
|
|
— |
|
|
— |
|
|
9,928 |
|
|
11,369 |
|
|
12,825 |
|
|
7,285 |
|
|
28,507 |
|
|
58,275 |
|
|
19,884 |
Single-family residential |
|
3,717 |
|
|
5,126 |
|
|
6,344 |
|
|
7,174 |
|
|
10,814 |
Owner occupied |
|
10,770 |
|
|
8,665 |
|
|
11,040 |
|
|
11,277 |
|
|
12,527 |
|
|
27,312 |
|
|
21,076 |
|
|
45,891 |
|
|
76,726 |
|
|
43,225 |
Commercial loans (2) (3) |
|
19,178 |
|
|
28,440 |
|
|
36,500 |
|
|
43,876 |
|
|
45,282 |
Consumer loans and
overdrafts |
|
468 |
|
|
257 |
|
|
353 |
|
|
198 |
|
|
270 |
Total Non-Accrual
Loans |
$ |
46,958 |
|
$ |
49,773 |
|
$ |
82,744 |
|
$ |
120,800 |
|
$ |
88,777 |
|
|
|
|
|
|
|
|
|
|
Past Due Accruing
Loans(4) |
|
|
|
|
|
|
|
|
|
Real Estate Loans |
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
743 |
Single-family residential |
|
— |
|
|
— |
|
|
4 |
|
|
20 |
|
|
— |
Owner occupied |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Commercial |
|
— |
|
|
— |
|
|
— |
|
|
295 |
|
|
— |
Consumer loans and
overdrafts |
|
10 |
|
|
8 |
|
|
1 |
|
|
4 |
|
|
3 |
Total Past Due
Accruing Loans |
|
10 |
|
|
8 |
|
|
5 |
|
|
319 |
|
|
746 |
Total Non-Performing
Loans |
|
46,968 |
|
|
49,781 |
|
|
82,749 |
|
|
121,119 |
|
|
89,523 |
Other Real Estate
Owned |
|
9,720 |
|
|
9,720 |
|
|
9,800 |
|
|
400 |
|
|
400 |
Total Non-Performing
Assets |
$ |
56,688 |
|
$ |
59,501 |
|
$ |
92,549 |
|
$ |
121,519 |
|
$ |
89,923 |
__________________ |
(1) |
Includes loan modifications that met the definition of TDRs which
may be performing in accordance with their modified loan terms. As
of March 31, 2022, December 31, 2021, September 30, 2021, June 30,
2021 and March 31, 2021, non-performing TDRs include $8.6 million,
$9.1 million, $9.3 million, $9.6 million and $9.8 million,
respectively, in a multiple loan relationship to a South Florida
borrower. |
(2) |
As of March 31, 2022, December 31, 2021, September 30, 2021, June
30, 2021 and March 31, 2021, includes $9.1 million, $9.1 million,
$13.9 million, $19.6 and $19.6 million, respectively, in a
commercial relationship placed in nonaccrual status during the
second quarter of 2020. During the third quarters of 2021 and 2020,
the Company charged off $5.7 million and $19.3 million,
respectively, against the allowance for loan losses as result of
the deterioration of this commercial relationship. In addition, in
connection with this loan relationship, the Company collected a
partial principal payment of $4.8 million in the fourth quarter of
2021. |
(3) |
In the first quarter of 2022, the Company collected a partial
payment of around $9.8 million on one commercial nonaccrual
loan of $12.4 million. Also, in the first quarter of 2022, the
Company charged-off the remaining balance of this loan of
$2.5 million against its specific reserve at December 31,
2021. |
(4) |
Loans past due 90 days or more but still accruing. |
|
|
Loans by Credit Quality Indicators
This table shows the Company’s loans by credit quality
indicators. We have no purchased credit-impaired loans.
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
(in thousands) |
Special Mention |
Substandard |
Doubtful |
Total (1) |
|
Special Mention |
Substandard |
Doubtful |
Total (1) |
|
Special Mention |
Substandard |
Doubtful |
Total (1) |
Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate (CRE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
3,221 |
$ |
11,522 |
$ |
1,303 |
$ |
16,046 |
|
$ |
34,205 |
$ |
5,890 |
$ |
1,395 |
$ |
41,490 |
|
$ |
45,206 |
$ |
5,684 |
$ |
3,576 |
$ |
54,466 |
Multi-family residential |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
11,369 |
|
— |
|
11,369 |
Land development and construction loans |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
3,221 |
|
11,522 |
|
1,303 |
|
16,046 |
|
|
34,205 |
|
5,890 |
|
1,395 |
|
41,490 |
|
|
45,206 |
|
17,053 |
|
3,576 |
|
65,835 |
Single-family residential |
|
— |
|
3,812 |
|
— |
|
3,812 |
|
|
— |
|
5,221 |
|
— |
|
5,221 |
|
|
— |
|
10,814 |
|
— |
|
10,814 |
Owner occupied |
|
7,383 |
|
10,862 |
|
— |
|
18,245 |
|
|
7,429 |
|
8,759 |
|
— |
|
16,188 |
|
|
21,045 |
|
12,627 |
|
— |
|
33,672 |
|
|
10,604 |
|
26,196 |
|
1,303 |
|
38,103 |
|
|
41,634 |
|
19,870 |
|
1,395 |
|
62,899 |
|
|
66,251 |
|
40,494 |
|
3,576 |
|
110,321 |
Commercial loans (2) |
|
25,545 |
|
18,519 |
|
1,989 |
|
46,053 |
|
|
32,452 |
|
20,324 |
|
9,497 |
|
62,273 |
|
|
43,313 |
|
21,045 |
|
25,917 |
|
90,275 |
Consumer loans and
overdrafts |
|
— |
|
468 |
|
— |
|
468 |
|
|
— |
|
270 |
|
— |
|
270 |
|
|
— |
|
298 |
|
— |
|
298 |
|
$ |
36,149 |
$ |
45,183 |
$ |
3,292 |
$ |
84,624 |
|
$ |
74,086 |
$ |
40,464 |
$ |
10,892 |
$ |
125,442 |
|
$ |
109,564 |
$ |
61,837 |
$ |
29,493 |
$ |
200,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________ |
(1) |
There were no loans categorized as “Loss” as of the dates
presented. |
(2) |
Loan balances as of March 31, 2022 and December 31, 2021 include
$9.1 million in a commercial relationship placed in nonaccrual
status and downgraded during the second quarter of 2020 ($19.6
million at March 31, 2021). As of March 31, 2022 and December 31,
2021, Substandard loans include $7.9 million and $4.9 million,
respectively and doubtful loans include $1.2 million and $4.2
million, respectively, related to this commercial relationship
(Substandard loans include $7.3 million and doubtful loans include
$12.3 million at March 31, 2021). During the third quarters of 2021
and 2020, the Company charged off $5.7 million and $19.3 million,
respectively, against the allowance for loan losses as result of
the deterioration of this commercial relationship. In addition, in
connection with this loan relationship, the Company collected a
partial principal payment of $4.8 million in the fourth quarter of
2021. |
|
|
Exhibit 8 - Deposits by Country of
Domicile
This table shows the Company’s
deposits by country of domicile of the depositor as of the dates
presented.
(in thousands) |
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
|
|
Domestic |
$ |
3,180,112 |
|
$ |
3,137,258 |
|
$ |
3,090,563 |
|
$ |
3,140,541 |
|
$ |
3,175,522 |
Foreign: |
|
|
|
|
|
|
|
|
|
Venezuela |
|
2,004,305 |
|
|
2,019,480 |
|
|
2,054,149 |
|
|
2,075,658 |
|
|
2,088,519 |
Others |
|
507,284 |
|
|
474,133 |
|
|
481,665 |
|
|
458,709 |
|
|
414,038 |
Total foreign |
|
2,511,589 |
|
|
2,493,613 |
|
|
2,535,814 |
|
|
2,534,367 |
|
|
2,502,557 |
Total deposits |
$ |
5,691,701 |
|
$ |
5,630,871 |
|
$ |
5,626,377 |
|
$ |
5,674,908 |
|
$ |
5,678,079 |
|
CONTACTS: |
Investors |
Laura Rossi |
InvestorRelations@amerantbank.com |
(305) 460-8728 |
|
Media |
Silvia M. Larrieu |
MediaRelations@amerantbank.com |
(305) 441-8414 |
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