Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”)
today reported net income attributable to the Company of $7.7
million in the second quarter of 2022, or $0.23 per diluted share,
a decrease compared to net income attributable to the Company of
$16.0 million, or $0.45 per diluted share, in the first quarter of
2022, and a decrease compared to the net income attributable to the
Company of $16.0 million, or $0.42 per diluted share, in the second
quarter of 2021. $8.0 million in non-routine charges recorded in
2Q22 was the primary driver for the decline quarter-over-quarter in
net income.
Core Pre-Provision Net Revenue (“Core PPNR”)1
grew to $19.4 million in the second quarter of 2022, a $1.5 million
increase from $17.9 million in the first quarter of 2022, and a
$2.5 million increase from $16.9 million in the second quarter of
2021. Return on assets (“ROA”) and return on equity (“ROE”) were
0.39% and 4.14%, respectively, in the second quarter of 2022,
compared to 0.84% and 8.10%, respectively, in the first quarter of
2022, and 0.83% and 8.11%, respectively, in the second 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:
- Net Interest Margin (“NIM”)
increased to 3.28% in 2Q22 compared to 3.18% in 1Q22.
- Total assets increased to $8.2
billion compared to $7.8 billion as of 1Q22.
- Total gross loans increased $126.2
million, or 2.2%, to $5.85 billion compared to $5.72 billion in
1Q22, while average yield on loans increased to 4.38% in 2Q22
compared to 4.16% in 1Q22.
- The New York loan portfolio
declined slightly to $354.0 million as of 2Q22, compared to
$373.0 million in 1Q22.
- Total deposits as of 2Q22 were
$6.20 billion, up $511.2 million compared to $5.69 billion in 1Q22.
Core deposits were $4.95 billion, up $505.0 million, or 11.4%,
compared to 1Q22, as the Company added new sources of deposits
during the second quarter.
- Average cost of total deposits
increased to 0.48% in 2Q22 compared to 0.38% in 1Q22, while the
loan to deposit ratio improved to 94.27% compared to 100.52% in
1Q22.
- FHLB advances declined by $150.0
million, the result of repaying $350.0 million in callable advances
and borrowing $200.0 million in long-term fixed advances to extend
duration and lock-in fixed interest rates.
- AUM totaled $1.87 billion, down
$261.4 million, or 12.3%, from 1Q22, reflective of market declines
in value.
“We are pleased to report continued momentum in our
transformation toward becoming a stronger, top performing bank,”
stated Jerry Plush, Chairman and CEO. “The significant reduction in
non-performing loans and other actions taken during the quarter
that required us to record non-routine charges we believe will
better position us for future success. The higher core PPNR for 2Q
demonstrates our continued focus on profitable growth.”
Significant Actions:
- Reduced non-performing loans (“NPL”) to $25.2 million as
of 2Q22 compared to $47.0 million as of 1Q22.
- As part of the NPL reduction, the Company received a
$5.5 million payment and charged off the remaining
$3.6 million on the previously disclosed Coffee Trader
relationship. All future receipts, if any, will be recorded as
recoveries.
- Amerant Mortgage reported improved results; FTEs decreased from
79 in 1Q22 to 67 as of 2Q22; reached breakeven on a stand-alone
basis in 2Q22 despite challenges related to the interest rate
environment.
- Successfully completed the Company’s second $50 million Class A
Common Stock repurchase program. The Company has now completed two
consecutive $50 million stock repurchase programs and repurchased
an aggregate 3,148,399 Class A Common Stock since mid-November
2021, when the Company announced the successful conversion to one
class of common stock.
- Launched new white label equipment finance solution and started
originations during 2Q22.
- Announced the closing of a banking center to occur in early
4Q22; $1.1 million in expected annual savings; recorded
non-routine closure charges of $1.6 million in 2Q22.
- Recorded remaining $2.8 million in estimated contract
termination costs in 2Q22 in connection with the conversion to
FIS.
- Incurred $3.6 million in other non-routine charges, including
$3.2 million in Other Real Estate Owned valuation (“OREO”) and $0.7
million in severance charges, partially offset by improved
valuation of $0.3 million in loans held for sale.
- Continued executing on building brand awareness by entering
into a new multi-year agreement to become the official Bank of the
NBA’s Miami Heat; also entered into a new multi-year agreement as a
proud partner of the NHL’s Florida Panthers.
- Announced four senior executive appointments to complete build
out of senior management team, including new head of consumer
banking, new chief digital officer, new chief legal and
administrative officer and new chief people officer.
- Increased Tampa loan production office to 10 FTEs, with most of
the team focused on commercial and industrial business
origination.
Summary Results
The summary results of the second quarter ended
2Q22 were as follows:
- Net income attributable to the Company was $7.7 million in
2Q22, down 51.9% from $16.0 million in 1Q22, and down 51.9% from
$16.0 million in 2Q21. Core PPNR1 was $19.4 million in 2Q22
compared to $17.9 million in 1Q22 and compared to Core PPNR of
$16.9 million in 2Q21. $8.0 million in non-routine charges recorded
in 2Q22 was the primary driver for the decline quarter-over-quarter
in net income.
- Net Interest Income (“NII”) was
$58.9 million, up $3.3 million, or 5.9%, from $55.6 million in
1Q22, and up $8.9 million, or 18.0%, from $50.0 million in 2Q21.
Net interest margin (“NIM”) was 3.28% in 2Q22, up 10 basis points
from 3.18% in 1Q22, and up 47 basis points from 2.81% in 2Q21.
- Amerant had no provision expense or
release from the allowance for loan losses (“ALL”) in 2Q22. The
Company released $10.0 million and $5.0 million from the ALL in
1Q22 and second quarter of 2021, respectively. The ratio of
allowance for loan losses to total loans held for investment was
0.91% as of 2Q22, compared with 0.99% as of 1Q22, and 1.86% as of
2Q21. The ratio of net charge-offs to average total loans held for
investment was 0.29% in 2Q22, unchanged compared to 1Q22, and up
from 0.12% in 2Q21. The ALL coverage of non-performing loans
increased to 2.1x in 2Q22, up from 1.2x and 0.9x in 1Q22 and 2Q21,
respectively.
- Non-interest income was $12.9
million in 2Q22, down 7.8% from $14.0 million in 1Q22, and down
17.8% from $15.7 million in 2Q21 primarily driven by net unrealized
losses on marketable equity securities of $2.6 million in 2Q22
compared to $0.8 million net unrealized gain in 1Q22.
- Non-interest expense was $62.2
million, up 2.3% from $60.8 million in 1Q22 and up 21.7% from $51.1
million in 2Q21, as 2Q22 included $8.0 million in non-routine
charges, including an expense of $3.2 million related to the market
valuation of an OREO property in New York, $2.8 million in
estimated contract termination costs in connection with the
conversion to FIS, and a lease impairment charge of $1.6 million
related to the closing of a banking center.
- The efficiency ratio was 86.6% in 2Q22, inclusive of
non-routine charges, compared to 87.3% in 1Q22, and 77.8% in 2Q21.
Core efficiency ratio1 was 73.7% in 2Q22, compared to 76.4% in
1Q22, and 74.5% in 2Q21.
- Total gross loans, which include
loans held for sale, were $5.85 billion at the close of 2Q22, up
$126.2 million, or 2.2%, compared to the close of 1Q22. Total
deposits were $6.20 billion at the close of 2Q22, up by $511.2
million, or 8.98%, compared to the close of 1Q22, and up by $527.9
million, or 9.3%, compared to the close of the second quarter
2021.
- Stockholders’ book value per common
share attributable to the Company was $21.07 at 2Q22, compared to
$21.82 at 1Q22, and $21.27 at 2Q21. Tangible stockholders’ equity
book value (“TBV”)1 per common share was $20.40 as of 2Q22,
compared to $21.15 at 1Q22, and $20.67 at 2Q21. The decline in book
value reflects an accumulated after-tax unrealized loss of $51.0
million at the close of 2Q22 compared to $24.4 million at the close
of 1Q22 primarily on the valuation of the Company’s debt securities
available for sale.
Credit Quality
The ALL was $52.0 million at the close of 2Q22,
compared to $56.1 million at the close of 1Q22, and $104.2 million
at the close of 2Q21. There were no provision expense or release
from the ALL for 2Q22, compared to a release of $10.0 million in
1Q22, and a release of $5.0 million in 2Q21. The ALL decreased
during 2Q22 primarily due to net charge-offs and movements within
the reserve including requirements for loan growth, one loan
downgraded to special mention and increase in specific reserves for
one commercial non-performing loan. These requirements were offset
by the upgrade of 2 commercial loans from special mention to pass,
and reduction in ALL associated with the COVID-19 pandemic which
was reduced from $4.9 million to $2.7 million during
2Q22.
Net charge-offs during 2Q22 totaled
$4.0 million, compared to $3.8 million in 1Q22 and $1.8
million net charge-offs in 2Q21. Charge-offs during the period were
primarily due to $4.0 million in two commercial loans and
$0.9 million in consumer loans, offset by $1.5 million in
recoveries.
Non-performing loans to total loans decreased significantly to
0.43% as of 2Q22, from 0.82% as of 1Q22, and from 2.16% as of 2Q21.
Special mention loans increased $1.5 million compared to 1Q22, and
decreased $54.8 million compared to 2Q21. The decrease in NPL was
primarily due to pay downs and payoffs totaling $19.2 million and
charge-offs totaling $4.4 million (including $3.6 million for
the Coffee Trader remaining balance as previously mentioned),
offset by $2.3 million due to the downgrade of one commercial loan.
The increase in special mention loans was primarily due to the
downgrade of one New York Commercial Real Estate (“CRE”) retail
loan totaling $29.0 million, offset by upgrades of two commercial
loans totaling $15.7 million and pay downs and payoffs of three
commercial loans totaling $11.2 million.
Non-performing assets totaled $31.7 million at
2Q22, a decrease of $25.0 million or 44.1%, compared to 1Q22, and
$89.8 million, or 73.9%, compared to 2Q21, due to the decrease in
NPL as mentioned above and the change in valuation of OREO by $3.2
million. The ratio of non-performing assets to total assets was 39
basis points, down 34 basis points from 73 basis points in 1Q22 and
122 basis points from 161 basis points in 2Q21. In 2Q22, the ratio
of ALL to non-performing loans improved to 2.07x, from 1.19x at
1Q22 and from 0.86x at the close of 2Q21.
Loans and Deposits
Total loans, including loans held for sale, as
of 2Q22 were $5.85 billion, up $126.2 million, or 2.21%, and $279.8
million, or 5.0%, compared to 1Q22 and 4Q21, respectively. Loans
held for sale as of 2Q22 totaled $121.3 million, compared to $85.7
million and $158.1 million as of 1Q22, and 4Q21, respectively. As
of 2Q22, loans held for sale included $54.9 million in residential
mortgage loans, and $66.4 million in CRE New York loans. Net loan
growth during 2Q22 was primarily driven by origination and
cross-sale efforts in Commercial & Industrial (C&I),
partially offset by $272.0 million in pay downs recorded. This
growth was also complemented with $130.2 million in loan purchases
performed under the indirect lending program. Net loan growth
year-to-date was driven by the same factors described above.
Total deposits as of 2Q22 were $6.2 billion, up
$511.2 million, or 8.98%, and $572.0 million or 10.2%, compared to
1Q22 and 4Q21, respectively. The quarter-over-quarter increase in
total deposits was primarily attributable to an increase in
customer transaction account balances of $506.6 million, or 11.5%,
compared to 1Q22, with mostly interest-bearing accounts
contributing to such growth as the Company continued to seek
additional sources of deposits during the period such as funds from
escrow accounts and municipalities. Offsetting the increase in
total deposits was a decrease of $19.3 million, or 1.5% in
non-interest bearing deposits compared to 1Q22. The year-to-date
increase in total deposits was primarily attributable to an
increase in customer transactional account balances of $704.7
million, or 16.8%, compared to 4Q21, inclusive of the additional
sources as mentioned above. Offsetting the year-to-date increase
was a decrease of $111.2 million, or 10.6% in customer time
deposits.
Customer time deposits decreased $14.0 million,
or 1.5%, and $111.2 million, or 10.6% compared to the first quarter
of 2022 and fourth quarter of 2021, respectively, as the Company
continued to focus on increasing core deposits and emphasizing
multi-product relationships versus single product higher-cost time
deposits.
Core deposits, which consist of total deposits
excluding all time deposits, as of 2Q22 were $4.9 billion, an
increase of $505.0 million, or 11.4%, and $655.4 million, or 15.3%
compared to 1Q22 and 4Q21, respectively. The $4.9 billion in core
deposits includes interest-bearing deposits of $2.0 billion, which
increased $476.0 million and $512.2 million compared to 1Q22 and
4Q21, respectively. Noninterest bearing demand deposits remained
flat at $1.3 billion, compared to 1Q22 and increased $115.7 million
or 9.8% compared to 4Q21. Domestic deposits totaled $3.7 billion,
up $542.3 million, or 17.1%, and $585.2 million, or 18.7% compared
to 1Q22, and 4Q21, respectively. Foreign deposits totaled $2.5
billion, slightly down by $31.2 million, or 1.2%, and $13.2
million, or 0.5% compared to 1Q22 and 4Q21, respectively.
Net Interest Income and Net Interest
Margin
Second quarter 2022 NII was $58.9 million, up $3.3 million, or
5.9%, from $55.6 million in 1Q22 and up $9.0 million, or 17.96%,
from $50.0 million in 2Q21. The quarter-over-quarter increase was
primarily driven by: (i) higher average yields on loans, debt
securities available for sale and placements; (ii) higher average
balance of commercial and consumer loans; (iii) higher average
balances of debt securities held to maturity; and (iv) lower
average balances of FHLB advances and customer time deposits. These
results were partially offset by: (i) higher average cost of total
deposits and FHLB advances; (ii) lower average balances in
available for sale debt securities; (iii) the full quarter impact
of the cost related to the subordinated debt issued in March 2022;
and (iv) higher average balances of brokered time deposits. The
increase in average yields on interest earning assets includes the
effect of the Federal Reserve’s actions to manage inflation in 2022
which consisted of raising its benchmark rate by a total of 150
basis points year to date.
The year-over-year increase in NII was primarily
driven by: (i) higher average yields on loans, debt securities
available for sale and placements; (ii) higher average balance of
loans and held to maturity securities; (iii) lower average balances
and rates on customer time deposits; and (iv) lower average
balances of brokered time deposits and FHLB advances. Partially
offsetting the year-over-year increase in NII were higher cost of
interest bearing deposits, money market deposits, brokered time
deposits and FHLB advances, and the cost of the subordinated debt
in March 2022.
NIM was 3.28% in 2Q22, up 10 basis points from 3.18% in 1Q22,
and up 47 basis points from 2.81% in 2Q21. The increase in NIM in
2Q22 includes the effect of higher market rates on loan yields as
well as Amerant’s efforts to increase loan origination volumes. In
2Q22, the Company also continued seeking additional opportunities
to improve NIM through the purchase of consumer loans under
indirect lending programs. In addition, during 2Q22 the Company
repaid $350.0 million in FHLB callable advances and borrowed
$200.0 million in long-term fixed advances to extend duration
of this portfolio and lock-in fixed interest rates.
Noninterest income
In 2Q22, noninterest income was $12.9 million,
down $1.1 million, or 7.8%, from $14.0 million in 1Q22. The
decrease was primarily driven by net unrealized losses on
marketable equity securities of $2.6 million in 2Q22 and lower fee
income from client derivatives. These results were partially offset
by: (i) higher mortgage banking income of $1.8 million; (ii)
net unrealized gain on derivatives valuation of $0.9 million; and
(iii) the absence of a net loss of $0.7 million on the early
extinguishment of FHLB advances incurred in 1Q22.
Noninterest income decreased $2.8 million, or
17.8%, in 2Q22 from $15.7 million in 2Q21. The year-over-year
decrease in noninterest income was primarily driven by: (i) net
unrealized losses on marketable equity securities of $2.6 million
in 2Q22; (ii) the absence of a gain of $3.8 million on the sale of
$95.1 million of PPP loans in 2Q21; and (iii) lower fee income from
client derivatives. The decrease was partially offset by: (i) the
absence of a loss of $2.5 million on the early extinguishment of
$235.0 million of FHLB advances in 2Q21; (ii) higher income from
mortgage banking; (iii) net unrealized gains on derivative
valuation of $0.9 million in 2Q22; and (iv) higher deposit
fees.
In 2Q22, the Company increased its ownership interest in Amerant
Mortgage (“AMTM”) to 80% from 57.4% at the close of 1Q22, due to
two former principals surrendering their interest in AMTM to the
Company when they became full time employees of the Bank and an
additional $1 million capital contribution made by the Company to
AMTM in 2Q22. In 2Q22, AMTM had noninterest income totaling
$2.4 million. In 2Q22, AMTM received 285 applications and
funded 253 loans totaling $118.6 million. Total mortgage loans
held for sale were $54.9 million as of 2Q22. FTEs at AMTM decreased
to 67 in 2Q22 from 79 in 1Q22, as the company rebalanced its
workforce in light of current market conditions.
The Company’s assets under management and
custody (“AUM”) totaled $1.9 billion as of 2Q22, decreasing
$261.4 million, or 12.3%, from $2.1 billion as of 1Q22, and
decreasing $264.5 million, or 12.4% from $2.1 billion as of 2Q21.
The quarter-over-quarter and year-over-year decrease in AUM was
primarily driven by lower market valuations, due to decreased
valuations in equity and fixed income markets.
Noninterest expense
Second quarter of 2022 noninterest expense was $62.2 million, up
$1.4 million, or 2.3%, from $60.8 million in 1Q22. The increase was
primarily driven by: (i) a non-routine charge of $3.2 million
related to an OREO valuation in New York; (ii) a lease impairment
charge of $1.6 million related to the closing of a banking center;
(iii) higher other professional fees primarily in connection with
customer derivative transactions; (iv) incremental variable
compensation expenses; and (v) higher advertising expenses. This
increase in noninterest expense was partially offset by: (i) $1.2
million lower estimated technology contract termination costs when
compared to 1Q22, resulting from the upcoming transition to FIS;
(ii) a $0.3 million reversal from the valuation allowance related
to the change in fair value of New York loans held for sale; (iii)
lower salaries and employee benefits resulting from fewer FTEs;
(iv) lower consulting fees primarily driven by the absence of
additional expenses in 1Q22 in connection with the engagement of
FIS; and (vi) lower telecommunication and data processing expenses,
primarily due to lower fees in connection with software services
received from third-party vendors.
Second quarter of 2022 noninterest expense, was $60.8 million,
up $11.1 million, or 21.7%, from $51.1 million in 2Q21. The
increase was primarily driven by: (i) additional expenses related
to the market valuation adjustment of an OREO property in New York;
(ii) technology contract termination costs resulting from the
transition to FIS supported systems and applications; (iii) higher
advertising expenses resulting from the Company’s efforts to build
brand awareness and drive digital and branch traffic; (iv) higher
variable compensation and long term incentive plans; (v) higher
professional fees primarily in connection with customer derivative
transactions; (vi) higher net rent expense related to the leasing
of the Company’s headquarters building and the aforementioned lease
impairment charge. These increases were partially offset by: (i)
lower severance expenses as 2Q21 included $3.3 million in
connection with the departure of the Company’s former Chief
Operating Officer and elimination of various support positions; and
(ii) the absence of a $0.8 million lease impairment charge in
connection with the closing of the NYC LPO in 2Q21.
In 2Q22, AMTM had noninterest expenses totaling
$3.7 million, which includes $2.5 million in salaries and employee
benefits and an aggregate of $1.2 million in residential mortgage
loan operations, professional fees and other noninterest
expenses.
The efficiency ratio was 86.59% in 2Q22,
compared to 87.29% in 1Q22, and 77.81% in 2Q21. Core efficiency
ratio1 decreased to 73.68% in 2Q22 compared to 76.36% in 1Q22 and
74.45% in 2Q21, primarily driven by higher NII.
Amerant continues to work on increasing
operating efficiencies. As of 2Q22, total FTEs was 680 compared to
677 on 1Q22, resulting from business development hires, partially
offset by reductions in staff in our mortgage banking operation.
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 2Q22.
Stockholders’ equity attributable to the Company
totaled $711.5 million as of 2Q22, down $37.9 million, or 5.1%,
from $749.4 million as of 1Q22, and down $120.4 million, or 14.5%
from $831.9 million as of 4Q21. The quarter-over-quarter decrease
was primarily driven by: (i) an after-tax unrealized loss of $26.4
million on the market value of debt securities available for sale
as a result of the increase of approximately 60 basis points
recorded in the index market rates; (ii) an aggregate of $17.2
million of Class A Common Stock in 2Q22, under the Class A
repurchase program launched in 2022, and (iii) $3.0 million of
dividends declared and paid by the Company in 2Q22. These decreases
were partially offset by net income of $7.7 million in 2Q22. The
year-to-date decrease was driven by: (i) an aggregate of $72.1
million of Class A Common Stock repurchased in the first and second
quarter of 2022, under the Class A Common Stock repurchase programs
launched in 2021 and 2022; (ii) an after-tax unrealized loss of
$66.1 million in the market value of debt securities available for
sale as a result of the increase of approximately over 150 basis
points recorded in the index market rates and; (iii) $6.2 million
of dividends declared and paid by the Company in the first and
second quarter of 2022. These decreases were partially offset by
net income of $16.0 million and $7.7 million in the first and
second quarter of 2022, respectively.
Book value per common share decreased to $21.07
at 2Q22 compared to $21.82 at 1Q22 and $23.18 at 4Q21. TBV1 per
common share decreased to $20.40 at 2Q22 compared to $21.15 and
$22.55 at 1Q22 and 4Q21, respectively. Both decreases were
primarily driven by the factors described above.
Amerant’s liquidity position includes cash and
cash equivalents of $354.1 million at the close of 2Q22, compared
to $276.2 million and $274.2 million as of 1Q22 and 4Q21,
respectively. Additionally, as of the end of 2Q22, 1Q22, and 4Q21,
the Company, through its subsidiary Amerant Bank, had $1.5 billion,
$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.
Second Quarter 2022 Earnings Conference
Call
The Company will hold an earnings conference
call on Thursday, July 21, 2022 at 9:00 a.m. (Eastern Time) to
discuss its second 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. with
deposit, credit and wealth management services. The Bank, which has
operated for over 40 years, is the largest community bank
headquartered in Florida. The Bank operates 24 banking centers – 17
in South Florida and 7 in the Houston, Texas area, as well as an
LPO in Tampa, Florida. 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 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, our quarterly report on Form 10-Q for the
quarter ended March 31, 2022 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 and six month periods ended
June 30, 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
noninterest income”, “core noninterest expenses”, “core net income
(loss)”, “core earnings (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, loans held
for sale and other real estate owned, the sale of our corporate
headquarters in the fourth quarter of 2021, and other non-routine
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) |
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
| Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
8,151,242 |
|
$ |
7,805,836 |
|
$ |
7,638,399 |
|
$ |
7,489,305 |
|
$ |
7,532,844 |
| Total investments |
|
1,422,479 |
|
|
1,324,969 |
|
|
1,341,241 |
|
|
1,422,738 |
|
|
1,359,240 |
| Total gross loans (1) |
|
5,847,384 |
|
|
5,721,177 |
|
|
5,567,540 |
|
|
5,478,924 |
|
|
5,608,548 |
| Allowance for loan losses |
|
52,027 |
|
|
56,051 |
|
|
69,899 |
|
|
83,442 |
|
|
104,185 |
| Total deposits |
|
6,202,854 |
|
|
5,691,701 |
|
|
5,630,871 |
|
|
5,626,377 |
|
|
5,674,908 |
| Core deposits (2) |
|
4,948,445 |
|
|
4,443,414 |
|
|
4,293,031 |
|
|
4,183,587 |
|
|
4,041,867 |
| Advances from the FHLB and
other borrowings |
|
830,524 |
|
|
980,047 |
|
|
809,577 |
|
|
809,095 |
|
|
808,614 |
| Senior notes |
|
59,052 |
|
|
58,973 |
|
|
58,894 |
|
|
58,815 |
|
|
58,736 |
| Subordinated notes (3) |
|
29,199 |
|
|
29,156 |
|
|
— |
|
|
— |
|
|
— |
| Junior subordinated
debentures |
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
| Stockholders' equity
(4)(5)(6)(7) |
|
711,450 |
|
|
749,396 |
|
|
831,873 |
|
|
812,662 |
|
|
799,068 |
| Assets under management and
custody (8) |
|
1,868,017 |
|
|
2,129,387 |
|
|
2,221,077 |
|
|
2,188,317 |
|
|
2,132,516 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended June 30, |
| (in thousands, except
percentages, share data and per share amounts) |
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| Consolidated Results
of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
58,945 |
|
|
$ |
55,645 |
|
|
$ |
55,780 |
|
|
$ |
51,821 |
|
|
$ |
49,971 |
|
|
$ |
114,590 |
|
|
$ |
97,540 |
|
| (Reversal of) provision for
loan losses |
|
— |
|
|
|
(10,000 |
) |
|
|
(6,500 |
) |
|
|
(5,000 |
) |
|
|
(5,000 |
) |
|
|
(10,000 |
) |
|
|
(5,000 |
) |
| Noninterest income |
|
12,931 |
|
|
|
14,025 |
|
|
|
77,290 |
|
|
|
13,434 |
|
|
|
15,734 |
|
|
|
26,956 |
|
|
|
29,897 |
|
| Noninterest expense |
|
62,241 |
|
|
|
60,818 |
|
|
|
55,088 |
|
|
|
48,404 |
|
|
|
51,125 |
|
|
|
123,059 |
|
|
|
94,750 |
|
| Net income attributable to
Amerant Bancorp Inc. (9) |
|
7,674 |
|
|
|
15,950 |
|
|
|
65,469 |
|
|
|
17,031 |
|
|
|
15,962 |
|
|
|
23,624 |
|
|
|
30,421 |
|
| Effective income tax rate |
|
21.10 |
% |
|
|
21.10 |
% |
|
|
23.88 |
% |
|
|
24.96 |
% |
|
|
22.65 |
% |
|
|
21.10 |
% |
|
|
21.45 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' book value per
common share |
$ |
21.07 |
|
|
$ |
21.82 |
|
|
$ |
23.18 |
|
|
$ |
21.68 |
|
|
$ |
21.27 |
|
|
$ |
21.07 |
|
|
$ |
21.27 |
|
| Tangible stockholders' equity
(book value) per common share (10) |
$ |
20.40 |
|
|
$ |
21.15 |
|
|
$ |
22.55 |
|
|
$ |
21.08 |
|
|
$ |
20.67 |
|
|
$ |
20.40 |
|
|
$ |
20.67 |
|
| Basic earnings per common
share |
$ |
0.23 |
|
|
$ |
0.46 |
|
|
$ |
1.79 |
|
|
$ |
0.46 |
|
|
$ |
0.43 |
|
|
$ |
0.69 |
|
|
$ |
0.81 |
|
| Diluted earnings per common
share (11) |
$ |
0.23 |
|
|
$ |
0.45 |
|
|
$ |
1.77 |
|
|
$ |
0.45 |
|
|
$ |
0.42 |
|
|
$ |
0.68 |
|
|
$ |
0.81 |
|
| Basic weighted average shares
outstanding |
|
33,675,930 |
|
|
|
34,819,984 |
|
|
|
36,606,969 |
|
|
|
37,133,783 |
|
|
|
37,330,000 |
|
|
|
34,244,797 |
|
|
|
37,473,144 |
|
| Diluted weighted average
shares outstanding (11) |
|
33,914,529 |
|
|
|
35,114,043 |
|
|
|
37,064,769 |
|
|
|
37,518,293 |
|
|
|
37,692,982 |
|
|
|
34,511,126 |
|
|
|
37,768,470 |
|
| Cash dividend declared per
common share (7) |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.06 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.18 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended June 30, |
| |
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
2022 |
|
2021 |
| Other Financial and
Operating Data (12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profitability
Indicators (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / Average total interest earning assets (NIM)
(13) |
3.28 |
% |
|
3.18 |
% |
|
3.17 |
% |
|
2.94 |
% |
|
2.81 |
% |
|
3.23 |
% |
|
2.74 |
% |
| Net income / Average total
assets (ROA) (14) |
0.39 |
% |
|
0.84 |
% |
|
3.45 |
% |
|
0.90 |
% |
|
0.83 |
% |
|
0.61 |
% |
|
0.80 |
% |
| Net income / Average
stockholders' equity (ROE) (15) |
4.14 |
% |
|
8.10 |
% |
|
32.04 |
% |
|
8.38 |
% |
|
8.11 |
% |
|
6.18 |
% |
|
7.80 |
% |
| Noninterest income / Total
revenue (16) |
17.99 |
% |
|
20.13 |
% |
|
58.08 |
% |
|
20.59 |
% |
|
23.95 |
% |
|
19.04 |
% |
|
23.46 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Indicators
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital ratio (17) |
13.21 |
% |
|
13.80 |
% |
|
14.56 |
% |
|
14.53 |
% |
|
14.17 |
% |
|
13.21 |
% |
|
14.17 |
% |
| Tier 1 capital ratio (18) |
11.99 |
% |
|
12.48 |
% |
|
13.45 |
% |
|
13.28 |
% |
|
12.92 |
% |
|
11.99 |
% |
|
12.92 |
% |
| Tier 1 leverage ratio
(19) |
10.25 |
% |
|
10.67 |
% |
|
11.52 |
% |
|
11.18 |
% |
|
10.75 |
% |
|
10.25 |
% |
|
10.75 |
% |
| Common equity tier 1 capital
ratio (CET1) (20) |
11.08 |
% |
|
11.55 |
% |
|
12.50 |
% |
|
12.31 |
% |
|
11.95 |
% |
|
11.08 |
% |
|
11.95 |
% |
| Tangible common equity ratio
(21) |
8.47 |
% |
|
9.34 |
% |
|
10.63 |
% |
|
10.58 |
% |
|
10.35 |
% |
|
8.47 |
% |
|
10.35 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality
Indicators (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing assets / Total
assets (22) |
0.39 |
% |
|
0.73 |
% |
|
0.78 |
% |
|
1.24 |
% |
|
1.61 |
% |
|
0.39 |
% |
|
1.61 |
% |
| Non-performing loans / Total
loans (1) (23) |
0.43 |
% |
|
0.82 |
% |
|
0.89 |
% |
|
1.51 |
% |
|
2.16 |
% |
|
0.43 |
% |
|
2.16 |
% |
| Allowance for loan losses /
Total non-performing loans |
206.84 |
% |
|
119.34 |
% |
|
140.41 |
% |
|
100.84 |
% |
|
86.02 |
% |
|
206.84 |
% |
|
86.02 |
% |
| Allowance for loan losses /
Total loans held for investment (1) |
0.91 |
% |
|
0.99 |
% |
|
1.29 |
% |
|
1.59 |
% |
|
1.86 |
% |
|
0.91 |
% |
|
1.86 |
% |
| Net charge-offs /
Average total loans held for investment (24) |
0.29 |
% |
|
0.29 |
% |
|
0.52 |
% |
|
1.16 |
% |
|
0.12 |
% |
|
0.29 |
% |
|
0.06 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency Indicators
(% except FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expense / Average
total assets |
3.18 |
% |
|
3.20 |
% |
|
2.90 |
% |
|
2.55 |
% |
|
2.67 |
% |
|
3.19 |
% |
|
2.48 |
% |
| Salaries and employee benefits
/ Average total assets |
1.54 |
% |
|
1.60 |
% |
|
1.65 |
% |
|
1.53 |
% |
|
1.61 |
% |
|
1.57 |
% |
|
1.50 |
% |
| Other operating expenses/
Average total assets (25) |
1.64 |
% |
|
1.60 |
% |
|
1.25 |
% |
|
1.02 |
% |
|
1.06 |
% |
|
1.62 |
% |
|
0.98 |
% |
| Efficiency ratio (26) |
86.59 |
% |
|
87.29 |
% |
|
41.40 |
% |
|
74.18 |
% |
|
77.81 |
% |
|
86.94 |
% |
|
74.35 |
% |
| Full-Time-Equivalent Employees
(FTEs) (27) |
680 |
|
|
677 |
|
|
763 |
|
|
733 |
|
|
719 |
|
|
680 |
|
|
719 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended June 30, |
| (in thousands, except
percentages and per share amounts) |
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| Core Selected
Consolidated Results of Operations and Other Data
(10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net revenue (PPNR) |
$ |
9,707 |
|
|
$ |
9,928 |
|
|
$ |
79,141 |
|
|
$ |
17,485 |
|
|
$ |
15,397 |
|
|
$ |
19,635 |
|
|
$ |
33,504 |
|
| Core pre-provision net revenue
(Core PPNR) |
$ |
19,447 |
|
|
$ |
17,869 |
|
|
$ |
18,911 |
|
|
$ |
18,297 |
|
|
$ |
16,934 |
|
|
$ |
37,316 |
|
|
$ |
32,699 |
|
| Core net income |
$ |
15,358 |
|
|
$ |
22,216 |
|
|
$ |
19,339 |
|
|
$ |
17,669 |
|
|
$ |
17,199 |
|
|
$ |
37,574 |
|
|
$ |
29,788 |
|
| Core basic earnings per common
share |
|
0.46 |
|
|
|
0.64 |
|
|
|
0.53 |
|
|
|
0.48 |
|
|
|
0.46 |
|
|
|
1.10 |
|
|
|
0.79 |
|
| Core earnings per diluted
common share (11) |
|
0.45 |
|
|
|
0.63 |
|
|
|
0.52 |
|
|
|
0.47 |
|
|
|
0.46 |
|
|
|
1.09 |
|
|
|
0.79 |
|
| Core net income / Average
total assets (Core ROA) (14) |
|
0.78 |
% |
|
|
1.17 |
% |
|
|
1.02 |
% |
|
|
0.93 |
% |
|
|
0.90 |
% |
|
|
0.97 |
% |
|
|
0.78 |
% |
| Core net income / Average
stockholders' equity (Core ROE) (15) |
|
8.28 |
% |
|
|
11.28 |
% |
|
|
9.46 |
% |
|
|
8.69 |
% |
|
|
8.74 |
% |
|
|
9.83 |
% |
|
|
7.64 |
% |
| Core efficiency ratio
(28) |
|
73.68 |
% |
|
|
76.36 |
% |
|
|
74.98 |
% |
|
|
72.95 |
% |
|
|
74.45 |
% |
|
|
75.00 |
% |
|
|
73.92 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________(1) Total gross loans include loans held for
investment net of unamortized deferred loan origination fees and
costs. In addition, at June 30, 2022, March 31, 2022, December 31,
2021 and September 30, 2021, total loans include $66.4 million,
$68.6 million, $143.2 million and $219.1 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 New York portfolio.
In addition, as of June 30, 2022, March 31, 2022, December 31,
2021, September 30, 2021 and June 30, 2021, total loans include
$54.9 million, $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 a
4.25% fixed-to-floating rate and due 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 second and first
quarters of 2022, the Company repurchased an aggregate of 611,525
shares and 991,362 shares, respectively, of Class A common stock at
a weighted average price of $28.19 per share and $32.96 per share,
respectively, under the new Class A Common Stock Repurchase
Program. In the second and first quarters of 2022, the aggregate
purchase price for these transactions was approximately $17.2
million and $32.7 million, respectively, including transaction
costs. On May 19, 2022, the Company announced the completion of the
New Class A Common Stock repurchase program.(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 and second quarters of 2021, the Company repurchased an
aggregate of 63,000 and 386,195 shares of Class B common stock,
respectively, at a weighted average price per share of $18.55 and
$16.62, 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 second and first quarters of 2022, and in the
fourth quarter of 2021, the Company’s Board of Directors declared a
cash dividend of $0.09, $0.09 and $0.06 per share of the Company’s
common stock, respectively. The dividend declared in the second
quarter of 2022 was paid on May 31, 2022 to shareholders of record
at the close of business on May 13, 2022.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 second quarter of 2022, first quarter of 2022 and
the fourth quarter of 2021 was $3.0 million, $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 June 30, 2022, March 31,
2022, December 31, 2021, September 30, 2021 and June 30, 2021, net
income exclude losses of $0.1 million, $1.1 million, $1.2 million,
$0.6 million, and $0.8 million, respectively, attributable to the
minority interest of Amerant Mortgage LLC. 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. In addition, in the second quarter of 2022, the minority
interest share changed from 42.6% to 20%. In connection with the
change in minority interest share in the second quarter of 2022,
the Company reduced its additional paid-in capital for a total of
$1.9 million with a corresponding increase to the equity
attributable to noncontrolling interests.(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 ratio 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 second and first quarters of 2022, and
the fourth, third and second quarters of 2021, there were net
charge offs of $4.0 million, $3.8 million, $7.0 million, $15.7
million, $1.8 million and $5.9 million, respectively. During the
second quarter of 2022, the Company charged-off $3.6 million in
connection with a loan relationship with a Miami-based U.S. coffee
trader (“the Coffee Trader”). 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
June 30, 2022, March 31, 2022, December 31, 2021, September 30,
2021 and June 30, 2021, includes 67, 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, loans held
for sale and other real estate owned, the sale and leaseback of our
corporate headquarters in the fourth quarter of 2021, and other
non-routine 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, |
|
Six Months Ended June 30, |
| (in thousands) |
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Amerant Bancorp Inc. |
$ |
7,674 |
|
|
$ |
15,950 |
|
|
$ |
65,469 |
|
|
$ |
17,031 |
|
|
$ |
15,962 |
|
|
$ |
23,624 |
|
|
$ |
30,421 |
|
| Plus: (reversal of) provision
for loan losses |
|
— |
|
|
|
(10,000 |
) |
|
|
(6,500 |
) |
|
|
(5,000 |
) |
|
|
(5,000 |
) |
|
|
(10,000 |
) |
|
|
(5,000 |
) |
| Plus: provision for income tax
expense (1) |
|
2,033 |
|
|
|
3,978 |
|
|
|
20,172 |
|
|
|
5,454 |
|
|
|
4,435 |
|
|
|
6,011 |
|
|
|
8,083 |
|
| Pre-provision net revenue
(PPNR) |
|
9,707 |
|
|
|
9,928 |
|
|
|
79,141 |
|
|
|
17,485 |
|
|
|
15,397 |
|
|
|
19,635 |
|
|
|
33,504 |
|
| Plus: non-routine noninterest
expense items |
|
7,995 |
|
|
|
6,574 |
|
|
|
1,895 |
|
|
|
758 |
|
|
|
4,164 |
|
|
|
14,569 |
|
|
|
4,404 |
|
| Less: non-routine noninterest
income items |
|
1,745 |
|
|
|
1,367 |
|
|
|
(62,125 |
) |
|
|
54 |
|
|
|
(2,627 |
) |
|
|
3,112 |
|
|
|
(5,209 |
) |
| Core pre-provision net
revenue (Core PPNR) |
$ |
19,447 |
|
|
$ |
17,869 |
|
|
$ |
18,911 |
|
|
$ |
18,297 |
|
|
$ |
16,934 |
|
|
$ |
37,316 |
|
|
$ |
32,699 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total noninterest income |
$ |
12,931 |
|
|
$ |
14,025 |
|
|
$ |
77,290 |
|
|
$ |
13,434 |
|
|
$ |
15,734 |
|
|
$ |
26,956 |
|
|
$ |
29,897 |
|
| Less: Non-routine noninterest
income items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: gain on sale of Headquarters building (1) |
|
— |
|
|
|
— |
|
|
|
62,387 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Derivatives gains (losses), net |
|
855 |
|
|
|
(1,345 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(490 |
) |
|
|
— |
|
|
Securities gains (losses), net |
|
(2,602 |
) |
|
|
769 |
|
|
|
(117 |
) |
|
|
(54 |
) |
|
|
1,329 |
|
|
|
(1,833 |
) |
|
|
3,911 |
|
|
Loss on early extinguishment of FHLB advances, net |
|
2 |
|
|
|
(714 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,488 |
) |
|
|
(712 |
) |
|
|
(2,488 |
) |
|
(Loss) gain on sale of loans |
|
— |
|
|
|
(77 |
) |
|
|
(145 |
) |
|
|
— |
|
|
|
3,786 |
|
|
|
(77 |
) |
|
|
3,786 |
|
|
Total non-routine noninterest income items |
$ |
(1,745 |
) |
|
$ |
(1,367 |
) |
|
$ |
62,125 |
|
|
$ |
(54 |
) |
|
$ |
2,627 |
|
|
$ |
(3,112 |
) |
|
$ |
5,209 |
|
| Core noninterest
income |
$ |
14,676 |
|
|
$ |
15,392 |
|
|
$ |
15,165 |
|
|
$ |
13,488 |
|
|
$ |
13,107 |
|
|
$ |
30,068 |
|
|
$ |
24,688 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total noninterest
expenses |
$ |
62,241 |
|
|
$ |
60,818 |
|
|
$ |
55,088 |
|
|
$ |
48,404 |
|
|
$ |
51,125 |
|
|
$ |
123,059 |
|
|
$ |
94,750 |
|
|
Less: non-routine noninterest expense items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Staff reduction costs (3) |
|
674 |
|
|
|
765 |
|
|
|
26 |
|
|
|
250 |
|
|
|
3,322 |
|
|
|
1,439 |
|
|
|
3,328 |
|
|
Contract termination costs (4) |
|
2,802 |
|
|
|
4,012 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,814 |
|
|
|
— |
|
|
Legal and Consulting fees (5) |
|
80 |
|
|
|
1,246 |
|
|
|
1,277 |
|
|
|
412 |
|
|
|
— |
|
|
|
1,326 |
|
|
|
— |
|
|
Digital transformation expenses |
|
— |
|
|
|
45 |
|
|
|
50 |
|
|
|
96 |
|
|
|
32 |
|
|
|
45 |
|
|
|
266 |
|
|
Lease impairment charge (6) |
|
1,565 |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
810 |
|
|
|
1,579 |
|
|
|
810 |
|
|
Branch closure expenses (7) |
|
— |
|
|
|
33 |
|
|
|
542 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
|
Total restructuring costs |
$ |
5,121 |
|
|
$ |
6,115 |
|
|
$ |
1,895 |
|
|
$ |
758 |
|
|
$ |
4,164 |
|
|
$ |
11,236 |
|
|
$ |
4,404 |
|
|
Other non-routine noninterest expense items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned valuation expense (8) |
|
3,174 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,174 |
|
|
|
— |
|
|
Loans held for sale valuation (reversal) expense (9) |
|
(300 |
) |
|
|
459 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
159 |
|
|
|
— |
|
|
Total non-routine noninterest expense items |
$ |
7,995 |
|
|
$ |
6,574 |
|
|
$ |
1,895 |
|
|
$ |
758 |
|
|
$ |
4,164 |
|
|
$ |
14,569 |
|
|
$ |
4,404 |
|
| Core noninterest
expenses |
$ |
54,246 |
|
|
$ |
54,244 |
|
|
$ |
53,193 |
|
|
$ |
47,646 |
|
|
$ |
46,961 |
|
|
$ |
108,490 |
|
|
$ |
90,346 |
|
| (in thousands, except
percentages and per share amounts) |
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| Net income attributable to
Amerant Bancorp Inc. |
$ |
7,674 |
|
|
$ |
15,950 |
|
|
$ |
65,469 |
|
|
$ |
17,031 |
|
|
$ |
15,962 |
|
|
$ |
23,624 |
|
|
$ |
30,421 |
|
| Plus after-tax non-routine
items in noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-routine items in
noninterest expense before income tax effect |
|
7,995 |
|
|
|
6,574 |
|
|
|
1,895 |
|
|
|
758 |
|
|
|
4,164 |
|
|
|
14,569 |
|
|
|
4,404 |
|
| Income tax effect (10) |
|
(1,687 |
) |
|
|
(1,387 |
) |
|
|
(478 |
) |
|
|
(229 |
) |
|
|
(897 |
) |
|
|
(3,074 |
) |
|
|
(945 |
) |
| Total after-tax non-routine
items in noninterest expense |
|
6,308 |
|
|
|
5,187 |
|
|
|
1,417 |
|
|
|
529 |
|
|
|
3,267 |
|
|
|
11,495 |
|
|
|
3,459 |
|
| Plus after-tax non-routine
items in noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-routine items in
noninterest income before income tax effect |
|
1,745 |
|
|
|
1,367 |
|
|
|
(62,125 |
) |
|
|
54 |
|
|
|
(2,627 |
) |
|
|
3,112 |
|
|
|
(5,209 |
) |
| Income tax effect (10) |
|
(369 |
) |
|
|
(288 |
) |
|
|
14,578 |
|
|
|
55 |
|
|
|
597 |
|
|
|
(657 |
) |
|
|
1,117 |
|
| Total after-tax non-routine
items in noninterest income |
|
1,376 |
|
|
|
1,079 |
|
|
|
(47,547 |
) |
|
|
109 |
|
|
|
(2,030 |
) |
|
|
2,455 |
|
|
|
(4,092 |
) |
| Core net
income |
$ |
15,358 |
|
|
$ |
22,216 |
|
|
$ |
19,339 |
|
|
$ |
17,669 |
|
|
$ |
17,199 |
|
|
$ |
37,574 |
|
|
$ |
29,788 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
$ |
0.23 |
|
|
$ |
0.46 |
|
|
$ |
1.79 |
|
|
$ |
0.46 |
|
|
$ |
0.43 |
|
|
$ |
0.69 |
|
|
$ |
0.81 |
|
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.19 |
|
|
|
0.15 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.34 |
|
|
|
0.10 |
|
| Less: after tax impact of
non-routine items in noninterest income |
|
0.04 |
|
|
|
0.03 |
|
|
|
(1.30 |
) |
|
|
— |
|
|
|
(0.06 |
) |
|
|
0.07 |
|
|
|
(0.12 |
) |
| Total core basic
earnings per common share |
$ |
0.46 |
|
|
$ |
0.64 |
|
|
$ |
0.53 |
|
|
$ |
0.48 |
|
|
$ |
0.46 |
|
|
$ |
1.10 |
|
|
$ |
0.79 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share
(11) |
$ |
0.23 |
|
|
$ |
0.45 |
|
|
$ |
1.77 |
|
|
$ |
0.45 |
|
|
$ |
0.42 |
|
|
$ |
0.68 |
|
|
$ |
0.81 |
|
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.18 |
|
|
|
0.15 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.34 |
|
|
|
0.09 |
|
| Less: after tax impact of
non-routine items in noninterest income |
|
0.04 |
|
|
|
0.03 |
|
|
|
(1.29 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
|
0.07 |
|
|
|
(0.11 |
) |
| Total core diluted
earnings per common share |
$ |
0.45 |
|
|
$ |
0.63 |
|
|
$ |
0.52 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
1.09 |
|
|
$ |
0.79 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income / Average total
assets (ROA) |
|
0.39 |
% |
|
|
0.84 |
% |
|
|
3.45 |
% |
|
|
0.90 |
% |
|
|
0.83 |
% |
|
|
0.61 |
% |
|
|
0.80 |
% |
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.32 |
% |
|
|
0.28 |
% |
|
|
0.07 |
% |
|
|
0.02 |
% |
|
|
0.17 |
% |
|
|
0.30 |
% |
|
|
0.09 |
% |
| Less: after tax impact of
non-routine items in noninterest income |
|
0.07 |
% |
|
|
0.06 |
% |
|
|
(2.50 |
)% |
|
|
0.01 |
% |
|
|
(0.10 |
)% |
|
|
0.06 |
% |
|
|
(0.11 |
)% |
| Core net income /
Average total assets (Core ROA) |
|
0.78 |
% |
|
|
1.18 |
% |
|
|
1.02 |
% |
|
|
0.93 |
% |
|
|
0.90 |
% |
|
|
0.97 |
% |
|
|
0.78 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income / Average
stockholders' equity (ROE) |
|
4.14 |
% |
|
|
8.10 |
% |
|
|
32.04 |
% |
|
|
8.38 |
% |
|
|
8.11 |
% |
|
|
6.18 |
% |
|
|
7.80 |
% |
| Plus: after tax impact of
non-routine items in noninterest expense |
|
3.40 |
% |
|
|
2.63 |
% |
|
|
0.69 |
% |
|
|
0.26 |
% |
|
|
1.66 |
% |
|
|
3.01 |
% |
|
|
0.88 |
% |
| Less: after tax impact of
non-routine items in noninterest income |
|
0.74 |
% |
|
|
0.55 |
% |
|
|
(23.27 |
)% |
|
|
0.05 |
% |
|
|
(1.03 |
)% |
|
|
0.64 |
% |
|
|
(1.04 |
)% |
| Core net income /
Average stockholders' equity (Core ROE) |
|
8.28 |
% |
|
|
11.28 |
% |
|
|
9.46 |
% |
|
|
8.69 |
% |
|
|
8.74 |
% |
|
|
9.83 |
% |
|
|
7.64 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
86.59 |
% |
|
|
87.29 |
% |
|
|
41.40 |
% |
|
|
74.18 |
% |
|
|
77.81 |
% |
|
|
86.94 |
% |
|
|
74.35 |
% |
| Less: impact of non-routine
items in noninterest expense |
|
(11.12 |
)% |
|
|
(9.43 |
)% |
|
|
(1.43 |
)% |
|
|
(1.16 |
)% |
|
|
(6.34 |
)% |
|
|
(10.29 |
)% |
|
|
(3.46 |
)% |
| Plus: impact of non-routine
items in noninterest income |
|
(1.79 |
)% |
|
|
(1.50 |
)% |
|
|
35.01 |
% |
|
|
(0.07 |
)% |
|
|
2.98 |
% |
|
|
(1.65 |
)% |
|
|
3.03 |
% |
| Core efficiency
ratio |
|
73.68 |
% |
|
|
76.36 |
% |
|
|
74.98 |
% |
|
|
72.95 |
% |
|
|
74.45 |
% |
|
|
75.00 |
% |
|
|
73.92 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended, |
|
Six Months Ended June 30, |
| (in thousands, except
percentages, share data and per share amounts) |
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
$ |
711,450 |
|
|
$ |
749,396 |
|
|
$ |
831,873 |
|
|
$ |
812,662 |
|
|
$ |
799,068 |
|
|
$ |
711,450 |
|
|
$ |
799,068 |
|
| Less: goodwill and other
intangibles (12) |
|
(22,808 |
) |
|
|
(22,795 |
) |
|
|
(22,528 |
) |
|
|
(22,529 |
) |
|
|
(22,505 |
) |
|
|
(22,808 |
) |
|
|
(22,505 |
) |
| Tangible common stockholders'
equity |
$ |
688,642 |
|
|
$ |
726,601 |
|
|
$ |
809,345 |
|
|
$ |
790,133 |
|
|
$ |
776,563 |
|
|
$ |
688,642 |
|
|
$ |
776,563 |
|
| Total assets |
|
8,151,242 |
|
|
|
7,805,836 |
|
|
|
7,638,399 |
|
|
|
7,489,305 |
|
|
|
7,532,844 |
|
|
|
8,151,242 |
|
|
|
7,532,844 |
|
| Less: goodwill and other
intangibles (12) |
|
(22,808 |
) |
|
|
(22,795 |
) |
|
|
(22,528 |
) |
|
|
(22,529 |
) |
|
|
(22,505 |
) |
|
|
(22,808 |
) |
|
|
(22,505 |
) |
| Tangible assets |
$ |
8,128,434 |
|
|
$ |
7,783,041 |
|
|
$ |
7,615,871 |
|
|
$ |
7,466,776 |
|
|
$ |
7,510,339 |
|
|
$ |
8,128,434 |
|
|
$ |
7,510,339 |
|
| Common shares outstanding |
|
33,759,604 |
|
|
|
34,350,822 |
|
|
|
35,883,320 |
|
|
|
37,487,339 |
|
|
|
37,562,792 |
|
|
|
33,759,604 |
|
|
|
37,562,792 |
|
| Tangible common equity
ratio |
|
8.47 |
% |
|
|
9.34 |
% |
|
|
10.63 |
% |
|
|
10.58 |
% |
|
|
10.34 |
% |
|
|
8.47 |
% |
|
|
10.34 |
% |
| Stockholders' book
value per common share |
$ |
21.07 |
|
|
$ |
21.82 |
|
|
$ |
23.18 |
|
|
$ |
21.68 |
|
|
$ |
21.27 |
|
|
$ |
21.07 |
|
|
$ |
21.27 |
|
| Tangible stockholders'
book value per common share |
$ |
20.40 |
|
|
$ |
21.15 |
|
|
$ |
22.55 |
|
|
$ |
21.08 |
|
|
$ |
20.67 |
|
|
$ |
20.40 |
|
|
$ |
20.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________(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
second and first quarters of 2022, includes expenses primarily in
connection with the 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 (“COO”) and the
elimination of various other support function positions, including
the New York 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) In
the three months ended June 30, 2022 and 2021, includes $1.6
million and $0.8 million, respectively, of ROU asset impairment
associated with the closure of a branch in Pembroke Pines, Florida
in 2022, and in connection with the closure of the NYC loan
production office in 2021.(7) Expenses related to the Fort
Lauderdale, Florida branch lease termination in 2021 and in
Wellington, Florida in 2022.(8) Fair value adjustment related to
one OREO property in New York.(9) Fair value adjustment related to
the New York loan portfolio held for sale carried at the lower of
cost or fair value.(10) In the three months ended March 31, 2022
and in the six months ended June 30, 2022 and 2021, amounts were
calculated based upon the effective tax rate for the periods of
21.10%, 21.10% and 21.45%, respectively. For all of the other
periods shown, amounts represent the difference between the prior
and current period year-to-date tax effect. (11) In the three
months ended June 30, 2022, 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. 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. (12) Other intangible assets consist of, among
other things, mortgage servicing rights (“MSRs”) of $0.9 million,
$0.9 million, $0.6 million, $0.6 million and $0.5 million at June
30, 2022, 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.
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 |
| |
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 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) |
$ |
5,635,147 |
$ |
61,514 |
4.38 |
% |
|
$ |
5,492,547 |
$ |
56,338 |
4.16 |
% |
|
$ |
5,526,727 |
$ |
53,612 |
3.89 |
% |
|
Debt securities available for sale (3) (4) |
|
1,113,994 |
|
7,614 |
2.74 |
% |
|
|
1,170,491 |
|
7,378 |
2.56 |
% |
|
|
1,180,766 |
|
6,393 |
2.17 |
% |
|
Debt securities held to maturity (5) |
|
177,483 |
|
981 |
2.22 |
% |
|
|
114,655 |
|
703 |
2.49 |
% |
|
|
97,208 |
|
481 |
1.98 |
% |
|
Debt securities held for trading |
|
101 |
|
1 |
3.97 |
% |
|
|
35 |
|
1 |
11.59 |
% |
|
|
258 |
|
2 |
3.11 |
% |
|
Equity securities with readily determinable fair value not held for
trading |
|
12,407 |
|
— |
— |
% |
|
|
1,301 |
|
— |
— |
% |
|
|
24,010 |
|
75 |
1.25 |
% |
|
Federal Reserve Bank and FHLB stock |
|
49,476 |
|
539 |
4.37 |
% |
|
|
51,505 |
|
546 |
4.30 |
% |
|
|
51,764 |
|
548 |
4.25 |
% |
|
Deposits with banks |
|
224,751 |
|
518 |
0.92 |
% |
|
|
259,225 |
|
132 |
0.21 |
% |
|
|
239,951 |
|
62 |
0.10 |
% |
|
Total interest-earning assets |
|
7,213,359 |
|
71,167 |
3.96 |
% |
|
|
7,089,759 |
|
65,098 |
3.72 |
% |
|
|
7,120,684 |
|
61,173 |
3.45 |
% |
| Total
non-interest-earning assets less allowance for loan
losses |
|
635,871 |
|
|
|
|
616,872 |
|
|
|
|
559,807 |
|
|
| Total assets |
$ |
7,849,230 |
|
|
|
$ |
7,706,631 |
|
|
|
$ |
7,680,491 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
Average Balances |
Income/ Expense |
Yield/ Rates |
|
Average Balances |
Income/Expense |
Yield/ Rates |
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Checking and saving accounts
- |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing DDA |
$ |
1,654,232 |
|
$ |
1,034 |
0.25 |
% |
|
$ |
1,556,480 |
|
$ |
290 |
0.08 |
% |
|
$ |
1,292,612 |
|
$ |
123 |
0.04 |
% |
|
Money market |
|
1,262,566 |
|
|
1,351 |
0.43 |
% |
|
|
1,253,293 |
|
|
734 |
0.24 |
% |
|
|
1,310,133 |
|
|
931 |
0.29 |
% |
|
Savings |
|
318,967 |
|
|
14 |
0.02 |
% |
|
|
325,121 |
|
|
11 |
0.01 |
% |
|
|
373,723 |
|
|
14 |
0.02 |
% |
| Total checking and saving
accounts |
|
3,235,765 |
|
|
2,399 |
0.30 |
% |
|
|
3,134,894 |
|
|
1,035 |
0.13 |
% |
|
|
2,976,468 |
|
|
1,068 |
0.14 |
% |
| Time deposits |
|
1,256,112 |
|
|
4,503 |
1.44 |
% |
|
|
1,295,278 |
|
|
4,281 |
1.34 |
% |
|
|
1,789,517 |
|
|
6,327 |
1.42 |
% |
| Total deposits |
|
4,491,877 |
|
|
6,902 |
0.62 |
% |
|
|
4,430,172 |
|
|
5,316 |
0.49 |
% |
|
|
4,765,985 |
|
|
7,395 |
0.62 |
% |
| Securities sold under
agreements to repurchase |
|
60 |
|
|
— |
— |
% |
|
|
— |
|
|
— |
— |
% |
|
|
440 |
|
|
1 |
0.91 |
% |
| Advances from the FHLB and
other borrowings (6) |
|
867,573 |
|
|
3,341 |
1.54 |
% |
|
|
917,039 |
|
|
2,481 |
1.10 |
% |
|
|
922,050 |
|
|
2,255 |
0.98 |
% |
| Senior notes |
|
59,013 |
|
|
942 |
6.40 |
% |
|
|
58,934 |
|
|
942 |
6.48 |
% |
|
|
58,697 |
|
|
942 |
6.44 |
% |
| Subordinated notes |
|
29,178 |
|
|
361 |
4.96 |
% |
|
|
7,451 |
|
|
88 |
4.79 |
% |
|
|
— |
|
|
— |
— |
% |
| Junior subordinated
debentures |
|
64,178 |
|
|
676 |
4.22 |
% |
|
|
64,178 |
|
|
626 |
3.96 |
% |
|
|
64,178 |
|
|
609 |
3.81 |
% |
| Total interest-bearing
liabilities |
|
5,511,879 |
|
|
12,222 |
0.89 |
% |
|
|
5,477,774 |
|
|
9,453 |
0.70 |
% |
|
|
5,811,350 |
|
|
11,202 |
0.77 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
1,309,520 |
|
|
|
|
|
1,199,264 |
|
|
|
|
|
937,275 |
|
|
|
| Accounts payable, accrued
liabilities and other liabilities |
|
283,721 |
|
|
|
|
|
231,088 |
|
|
|
|
|
142,226 |
|
|
|
| Total non-interest-bearing
liabilities |
|
1,593,241 |
|
|
|
|
|
1,430,352 |
|
|
|
|
|
1,079,501 |
|
|
|
| Total liabilities |
|
7,105,120 |
|
|
|
|
|
6,908,126 |
|
|
|
|
|
6,890,851 |
|
|
|
| Stockholders’ equity |
|
744,110 |
|
|
|
|
|
798,505 |
|
|
|
|
|
789,640 |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
7,849,230 |
|
|
|
|
$ |
7,706,631 |
|
|
|
|
$ |
7,680,491 |
|
|
|
| Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,701,480 |
|
|
|
|
$ |
1,611,985 |
|
|
|
|
$ |
1,309,334 |
|
|
|
| Net interest
income |
|
$ |
58,945 |
|
|
|
$ |
55,645 |
|
|
|
$ |
49,971 |
|
| Net interest rate spread |
|
|
3.07 |
% |
|
|
|
3.02 |
% |
|
|
|
2.68 |
% |
| Net interest margin (7) |
|
|
3.28 |
% |
|
|
|
3.18 |
% |
|
|
|
2.81 |
% |
| Cost of total deposits
(8) |
|
|
0.48 |
% |
|
|
|
0.38 |
% |
|
|
|
0.52 |
% |
| Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
130.87 |
% |
|
|
|
|
129.43 |
% |
|
|
|
|
122.53 |
% |
|
|
| Average non-performing loans/
Average total loans |
|
0.56 |
% |
|
|
|
|
0.71 |
% |
|
|
|
|
1.84 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Six Months Ended |
| |
June 30, 2022 |
|
June 30, 2021 |
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
Average Balances |
Income/ Expense |
Yield/ Rates |
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
Loan portfolio, net (1)(2) |
$ |
5,564,362 |
|
$ |
117,852 |
4.27 |
% |
|
$ |
5,602,218 |
|
$ |
106,383 |
3.83 |
% |
|
Debt securities available for sale (3)(4) |
|
1,142,087 |
|
|
14,992 |
2.65 |
% |
|
|
1,192,342 |
|
|
12,888 |
2.18 |
% |
|
Debt securities held to maturity (5) |
|
146,243 |
|
|
1,684 |
2.32 |
% |
|
|
82,550 |
|
|
783 |
1.91 |
% |
|
Debt securities held for trading |
|
68 |
|
|
2 |
5.93 |
% |
|
|
181 |
|
|
3 |
3.34 |
% |
|
Equity securities with readily determinable fair value not held for
trading |
|
6,885 |
|
|
— |
— |
% |
|
|
24,117 |
|
|
159 |
1.33 |
% |
|
Federal Reserve Bank and FHLB stock |
|
50,485 |
|
|
1,085 |
4.33 |
% |
|
|
57,650 |
|
|
1,173 |
4.10 |
% |
|
Deposits with banks |
|
241,893 |
|
|
650 |
0.54 |
% |
|
|
222,749 |
|
|
113 |
0.10 |
% |
|
Total interest-earning assets |
|
7,152,023 |
|
|
136,265 |
3.84 |
% |
|
|
7,181,807 |
|
|
121,502 |
3.41 |
% |
| Total non-interest-earning
assets less allowance for loan losses |
|
626,501 |
|
|
|
|
|
532,232 |
|
|
|
| Total assets |
$ |
7,778,524 |
|
|
|
|
$ |
7,714,039 |
|
|
|
| |
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
| Checking and saving accounts
- |
|
|
|
|
|
|
|
|
Interest bearing DDA |
$ |
1,605,626 |
|
$ |
1,324 |
0.17 |
% |
|
$ |
1,302,603 |
|
$ |
236 |
0.04 |
% |
|
Money market |
|
1,257,955 |
|
|
2,084 |
0.33 |
% |
|
|
1,273,284 |
|
|
1,897 |
0.30 |
% |
|
Savings |
|
322,027 |
|
|
26 |
0.02 |
% |
|
|
320,903 |
|
|
28 |
0.02 |
% |
| Total checking and saving
accounts |
|
3,185,608 |
|
|
3,434 |
0.22 |
% |
|
|
2,896,790 |
|
|
2,161 |
0.15 |
% |
| Time deposits |
|
1,275,587 |
|
|
8,784 |
1.39 |
% |
|
|
1,872,577 |
|
|
13,687 |
1.47 |
% |
| Total deposits |
|
4,461,195 |
|
|
12,218 |
0.55 |
% |
|
|
4,769,367 |
|
|
15,848 |
0.67 |
% |
| Securities sold under
agreements to repurchase |
|
30 |
|
|
— |
— |
% |
|
|
221 |
|
|
1 |
0.91 |
% |
| Advances from the FHLB and
other borrowings (6) |
|
892,170 |
|
|
5,822 |
1.32 |
% |
|
|
985,672 |
|
|
5,013 |
1.03 |
% |
| Senior notes |
|
58,974 |
|
|
1,884 |
6.44 |
% |
|
|
58,658 |
|
|
1,884 |
6.48 |
% |
| Subordinated notes |
|
18,375 |
|
|
449 |
4.93 |
% |
|
|
— |
|
|
— |
— |
% |
| Junior subordinated
debentures |
|
64,178 |
|
|
1,302 |
4.09 |
% |
|
|
64,178 |
|
|
1,216 |
3.82 |
% |
| Total interest-bearing
liabilities |
|
5,494,922 |
|
|
21,675 |
0.80 |
% |
|
|
5,878,096 |
|
|
23,962 |
0.82 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
1,254,948 |
|
|
|
|
|
931,291 |
|
|
|
| Accounts payable, accrued
liabilities and other liabilities |
|
257,559 |
|
|
|
|
|
118,021 |
|
|
|
| Total non-interest-bearing
liabilities |
|
1,512,507 |
|
|
|
|
|
1,049,312 |
|
|
|
| Total liabilities |
|
7,007,429 |
|
|
|
|
|
6,927,408 |
|
|
|
| Stockholders’ equity |
|
771,095 |
|
|
|
|
|
786,631 |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
7,778,524 |
|
|
|
|
$ |
7,714,039 |
|
|
|
| Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,657,101 |
|
|
|
|
$ |
1,303,711 |
|
|
|
| Net interest
income |
|
$ |
114,590 |
|
|
|
$ |
97,540 |
|
| Net interest rate spread |
|
|
3.04 |
% |
|
|
|
2.59 |
% |
| Net interest margin (7) |
|
|
3.23 |
% |
|
|
|
2.74 |
% |
| Cost of total deposits
(8) |
|
|
0.43 |
% |
|
|
|
0.56 |
% |
| Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
130.16 |
% |
|
|
|
|
122.18 |
% |
|
|
| Average non-performing loans/
Average total loans |
|
0.63 |
% |
|
|
|
|
1.69 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
___________(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 $55.9 million, $67.5
million and $110.8 million in the three months ended June 30,
2022, March 31, 2022 and June 30, 2021, respectively, and $61.7
million and $110.9 million in the six months ended June 30, 2022
and 2021, respectively. The average balance of total loans held for
sale was $112.2 million, $137.7 million, and $0.3 million in
the three months ended June 30, 2022, March 31, 2022 and June
30, 2021, respectively, and $123.6 million and $0.2 million in the
six months ended June 30, 2022 and 2021, respectively.(2) Includes
average non-performing loans of $32.7 million, $39.2 million and
$103.6 million for the three months ended June 30, 2022, March
31, 2022 and June 30, 2021, respectively, and $36.0 million and
$96.4 million for the six months ended June 30, 2022 and 2021,
respectively.(3) Includes the average balance of net unrealized
gains and losses in the fair value of debt securities available for
sale. The average balance includes average unrealized net loss of
$58.0 million in the three months ended June 30, 2022, and
average net unrealized gains of $2.4 million and $24.1 million, in
the three months ended March 31, 2022 and June 30 2021,
respectively, and average net unrealized loss of $28.0 million in
the six months ended June 30, 2022, and average net unrealized
gain of $28.7 million in the six months ended June 30, 2021. (4)
Includes nontaxable securities with average balances of $14.8
million, $16.2 million and $27.3 million for the three months ended
June 30, 2022, March 31, 2022 and June 30, 2021, respectively,
and $15.7 million and $47.9 million in the six months ended June
30, 2022 and 2021, respectively. The tax equivalent yield for these
nontaxable securities was 2.97%, 2.81% and 2.15% for the three
months ended June 30, 2022, March 31, 2022 and June 30 2021,
respectively, and 2.85% and 2.77% for the six months ended June 30,
2022 and 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.(5) Includes nontaxable securities with
average balances of $42.7 million, $37.8 million and $52.2 million
for the three months ended June 30, 2022, March 31, 2022 and
March 31, 2021, respectively, and $43.4 million and $54.4 million
in the six months ended June 30, 2022 and 2021, respectively. The
tax equivalent yield for these nontaxable securities was 3.31%,
3.67% and 2.19% for the three months ended June 30, 2022,
March 31, 2022 and June 30, 2021, respectively, and 3.22% and 2.30%
in the six months ended June 30, 2022 and 2021, respectively. In
2022 and 2021, the tax equivalent yields were calculated assuming a
21% tax rate and dividing the actual yield by 0.79. (6) The terms
of the FHLB advance agreements require the Bank to maintain certain
investment securities or loans as collateral for these advances.(7)
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.(8) 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 |
|
Six Months Ended June 30, |
| |
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| (in thousands, except
percentages) |
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
Deposits and service fees |
$ |
4,577 |
|
|
35.4 |
% |
|
$ |
4,620 |
|
|
32.9 |
% |
|
$ |
4,284 |
|
|
27.2 |
% |
|
$ |
9,197 |
|
|
34.1 |
% |
|
$ |
8,390 |
|
|
28.1 |
% |
| Brokerage, advisory and
fiduciary activities |
|
4,439 |
|
|
34.3 |
% |
|
|
4,596 |
|
|
32.8 |
% |
|
|
4,431 |
|
|
28.2 |
% |
|
|
9,035 |
|
|
33.5 |
% |
|
|
9,034 |
|
|
30.2 |
% |
| Change in cash surrender value
of bank owned life insurance (“BOLI”)(1) |
|
1,334 |
|
|
10.3 |
% |
|
|
1,342 |
|
|
9.6 |
% |
|
|
1,368 |
|
|
8.7 |
% |
|
|
2,676 |
|
|
9.9 |
% |
|
|
2,724 |
|
|
9.1 |
% |
| Cards and trade finance
servicing fees |
|
508 |
|
|
3.9 |
% |
|
|
590 |
|
|
4.2 |
% |
|
|
388 |
|
|
2.5 |
% |
|
|
1,098 |
|
|
4.1 |
% |
|
|
727 |
|
|
2.4 |
% |
| Gain (loss) on early
extinguishment of FHLB advances, net |
|
2 |
|
|
— |
% |
|
|
(714 |
) |
|
(5.1)% |
|
|
(2,488 |
) |
|
(15.8 |
)% |
|
|
(712 |
) |
|
(2.6)% |
|
|
(2,488 |
) |
|
(8.3 |
)% |
| Securities (losses) gains, net
(2) |
|
(2,602 |
) |
|
(20.1 |
)% |
|
|
769 |
|
|
5.5 |
% |
|
|
1,329 |
|
|
8.5 |
% |
|
|
(1,833 |
) |
|
(6.8 |
)% |
|
|
3,911 |
|
|
13.1 |
% |
| Derivative gains (losses), net
(3) |
|
855 |
|
|
6.6 |
% |
|
|
(1,345 |
) |
|
(9.6)% |
|
|
— |
|
|
— |
% |
|
|
(490 |
) |
|
(1.8 |
)% |
|
|
— |
|
|
— |
% |
| Loan-level derivative income
(4) |
|
1,009 |
|
|
7.8 |
% |
|
|
3,152 |
|
|
22.5 |
% |
|
|
1,293 |
|
|
8.2 |
% |
|
|
4,161 |
|
|
15.4 |
% |
|
|
1,525 |
|
|
5.1 |
% |
| Other noninterest income
(5)(6) |
|
2,809 |
|
|
21.8 |
% |
|
|
1,015 |
|
|
7.2 |
% |
|
|
5,129 |
|
|
32.6 |
% |
|
|
3,824 |
|
|
14.2 |
% |
|
|
6,074 |
|
|
20.3 |
% |
|
Total noninterest income |
$ |
12,931 |
|
|
100.0 |
% |
|
$ |
14,025 |
|
|
100.0 |
% |
|
$ |
15,734 |
|
|
100.0 |
% |
|
$ |
26,956 |
|
|
100.0 |
% |
|
$ |
29,897 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________(1) Changes in cash surrender value of BOLI
are not taxable.(2) Includes: (i) net gain on sale of debt
securities of $49 thousand and $1.3 million in the three months
ended March 31, 2022 and June 30, 2021, respectively, and (iii)
unrealized losses of $2.6 million in the three months ended
June 30, 2022, and unrealized gains of $0.7 million and $22
thousand in the three months ended March 31, 2022 and June 30,
2021, respectively, related to the change in fair value of
marketable equity securities.(3) Net unrealized gains and losses
related to uncovered interest rate caps with clients. (4) Income
from interest rate swaps and other derivative transactions with
customers. In three months ended June 30, 2022, March 31, 2022 and
June 30, 2021, the Company incurred expenses related to derivative
transactions with customers of $2.0 million, $1.0 million and $0.2
million, respectively, which are included as part of noninterest
expenses under professional and other services fees. (5) Includes
mortgage banking revenue related to Amerant Mortgage of $2.4
million and $0.8 million in the three months ended June 30, 2022
and March 31, 2022, respectively, primarily consisting of gain on
sale of loans, gain on loans market valuation, other fees and
smaller sources of income. 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.(6) Beginning 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 (included as part of other
noninterest income in 2021 in connection with the previously-owned
headquarters building). In each of the three months ended
June 30, 2022, March 31, 2022 and June 30, 2021, rental income
from subleases was $0.7 million.
Exhibit 5 - Noninterest
Expense
This table shows the amounts of each of the categories of
noninterest expense for the periods presented.
| |
Three Months Ended |
|
Six Months Ended June 30, |
| |
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| (in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
| |
|
|
|
|
|
|
|
|
Salaries and employee benefits (1) |
$ |
30,212 |
|
48.5 |
% |
|
$ |
30,403 |
50.0 |
% |
|
$ |
30,796 |
60.2 |
% |
|
$ |
60,615 |
49.3 |
% |
|
$ |
57,223 |
60.4 |
% |
| Occupancy and equipment (2)
(3) |
|
7,760 |
|
12.5 |
% |
|
|
6,725 |
11.1 |
% |
|
|
5,342 |
10.4 |
% |
|
|
14,485 |
11.8 |
% |
|
|
9,830 |
10.4 |
% |
| Professional and other
services fees (4) (5) |
|
6,746 |
|
10.8 |
% |
|
|
7,182 |
11.8 |
% |
|
|
4,693 |
9.2 |
% |
|
|
13,928 |
11.3 |
% |
|
|
8,477 |
8.9 |
% |
| Telecommunications and data
processing |
|
3,214 |
|
5.2 |
% |
|
|
4,038 |
6.6 |
% |
|
|
3,515 |
6.9 |
% |
|
|
7,252 |
5.9 |
% |
|
|
7,242 |
7.6 |
% |
| Depreciation and amortization
(6) |
|
1,294 |
|
2.1 |
% |
|
|
1,152 |
1.9 |
% |
|
|
1,872 |
3.7 |
% |
|
|
2,446 |
2.0 |
% |
|
|
3,658 |
3.9 |
% |
| FDIC assessments and
insurance |
|
1,526 |
|
2.5 |
% |
|
|
1,396 |
2.3 |
% |
|
|
1,702 |
3.3 |
% |
|
|
2,922 |
2.4 |
% |
|
|
3,457 |
3.6 |
% |
| Loans held for sale valuation
(reversal) expense (7) |
|
(300 |
) |
(0.5 |
)% |
|
|
459 |
0.8 |
% |
|
|
— |
— |
% |
|
|
159 |
0.1 |
% |
|
|
— |
— |
% |
| Advertising expenses |
|
3,253 |
|
5.2 |
% |
|
|
2,972 |
4.9 |
% |
|
|
827 |
1.6 |
% |
|
|
6,225 |
5.1 |
% |
|
|
1,143 |
1.2 |
% |
| Other real estate owned
valuation expense (8) |
|
3,174 |
|
5.1 |
% |
|
|
— |
— |
% |
|
|
— |
— |
% |
|
|
3,174 |
2.6 |
% |
|
|
— |
— |
% |
| Contract termination costs
(9) |
|
2,802 |
|
4.5 |
% |
|
|
4,012 |
6.6 |
% |
|
|
— |
— |
% |
|
|
6,814 |
5.5 |
% |
|
|
— |
— |
% |
| Other operating expenses
(10) |
|
2,560 |
|
4.1 |
% |
|
|
2,479 |
4.0 |
% |
|
|
2,378 |
4.7 |
% |
|
|
5,039 |
4.0 |
% |
|
|
3,720 |
3.9 |
% |
|
Total noninterest expense (11) |
$ |
62,241 |
|
100.0 |
% |
|
$ |
60,818 |
100.0 |
% |
|
$ |
51,125 |
100.0 |
% |
|
$ |
123,059 |
100.0 |
% |
|
$ |
94,750 |
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________(1) Includes severance expense of $0.7 million, $0.8
million and $3.3 million in the three months ended June 30, 2022,
March 31, 2022 and June 30, 2021, respectively, primarily in
connection with the restructuring of business lines and the
elimination of certain support functions in the second and first
quarters of 2022, and with the departure of the Company’s COO and
elimination of various support function positions in the second
quarter of 2021.(2) In the three months ended June 30, 2022 and
2021, includes ROU asset impairment changes of $1.6 million and
$0.8 million, respectively, in connection with the closure of a
branch in Pembroke Pines, Florida in 2022, and the NYC loan
production office in 2021. In the three months ended March 31,
2022, includes $47 thousand related to the lease termination of a
branch in Fort Lauderdale, Florida in 2021. (3) Beginning 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 (included as part of other
noninterest income in 2021 in connection with the previously-owned
headquarters building). In each of three months ended June 30,
2022, March 31, 2022 and June 30, 2021, rental income from
subleases was $0.7 million.(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 New
York office space. (5) Other services fees include expenses of $2.0
million, $1.0 million and $0.2 million in the three months ended
June 30, 2022, March 31, 2022 and June 30, 2021, respectively, in
connection with our loan-level derivative income generation
activities. (6) In the three months ended June 30, 2021, includes
$0.5 million of depreciation expense associated with the Company’s
previously-owned headquarters building. No depreciation expense
related to the headquarters building was recorded in the three
months ended June 30, 2022 and March 31, 2022 as this property was
sold and leased-back in the fourth quarter of 2021.(7) Valuation
allowance as a result of changes in the fair value of loans held
for sale carried at the lower of cost or fair value.(8) Fair value
adjustment related to one OREO property in New York.(9) Contract
termination and related costs associated with third party vendors
resulting from the Company’s engagement of FIS.(10) 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.(11) Includes $3.7
million and $3.5 million in the three months ended June 30, 2022
and March 31, 2022, respectively, related to AMTM, 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) |
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
| Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
29,217 |
|
|
$ |
35,242 |
|
|
$ |
33,668 |
|
|
$ |
27,501 |
|
|
$ |
45,198 |
|
| Interest earning deposits with
banks |
|
303,030 |
|
|
|
234,709 |
|
|
|
240,540 |
|
|
|
138,732 |
|
|
|
126,314 |
|
| Restricted cash |
|
21,808 |
|
|
|
6,243 |
|
|
|
|
|
— |
|
|
|
— |
|
|
Cash and cash equivalents |
|
354,055 |
|
|
|
276,194 |
|
|
|
274,208 |
|
|
|
166,233 |
|
|
|
171,512 |
|
| Securities |
|
|
|
|
|
|
|
|
|
| Debt securities available for
sale |
|
1,124,801 |
|
|
|
1,145,785 |
|
|
|
1,175,319 |
|
|
|
1,220,391 |
|
|
|
1,194,068 |
|
| Debt securities held to
maturity |
|
238,621 |
|
|
|
112,008 |
|
|
|
118,175 |
|
|
|
130,543 |
|
|
|
93,311 |
|
| Trading securities |
|
103 |
|
|
|
— |
|
|
|
— |
|
|
|
194 |
|
|
|
198 |
|
| Equity securities with readily
determinable fair value not held for trading |
|
10,767 |
|
|
|
13,370 |
|
|
|
252 |
|
|
|
23,870 |
|
|
|
23,988 |
|
| Federal Reserve Bank and
Federal Home Loan Bank stock |
|
48,187 |
|
|
|
53,806 |
|
|
|
47,495 |
|
|
|
47,740 |
|
|
|
47,675 |
|
|
Securities |
|
1,422,479 |
|
|
|
1,324,969 |
|
|
|
1,341,241 |
|
|
|
1,422,738 |
|
|
|
1,359,240 |
|
| Loans held for sale, at lower
of cost or fair value (1) |
|
66,390 |
|
|
|
68,591 |
|
|
|
143,195 |
|
|
|
219,083 |
|
|
|
— |
|
| Mortgage loans held for sale,
at fair value |
|
54,863 |
|
|
|
17,108 |
|
|
|
14,905 |
|
|
|
5,812 |
|
|
|
1,775 |
|
| Loans held for investment,
gross |
|
5,726,131 |
|
|
|
5,635,478 |
|
|
|
5,409,440 |
|
|
|
5,254,029 |
|
|
|
5,606,773 |
|
| Less: Allowance for loan
losses |
|
52,027 |
|
|
|
56,051 |
|
|
|
69,899 |
|
|
|
83,442 |
|
|
|
104,185 |
|
|
Loans held for investment, net |
|
5,674,104 |
|
|
|
5,579,427 |
|
|
|
5,339,541 |
|
|
|
5,170,587 |
|
|
|
5,502,588 |
|
| Bank owned life insurance |
|
225,682 |
|
|
|
224,348 |
|
|
|
223,006 |
|
|
|
221,640 |
|
|
|
220,271 |
|
| Premises and equipment, net
(2) |
|
39,091 |
|
|
|
37,929 |
|
|
|
37,860 |
|
|
|
108,885 |
|
|
|
108,708 |
|
| Deferred tax assets, net |
|
33,265 |
|
|
|
22,119 |
|
|
|
11,301 |
|
|
|
9,861 |
|
|
|
13,516 |
|
| Operating lease right-of-use
assets (2) |
|
139,358 |
|
|
|
139,477 |
|
|
|
141,139 |
|
|
|
51,530 |
|
|
|
52,519 |
|
| Goodwill |
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
| Accrued interest receivable
and other assets |
|
122,449 |
|
|
|
96,168 |
|
|
|
92,497 |
|
|
|
93,430 |
|
|
|
83,209 |
|
|
Total assets |
$ |
8,151,242 |
|
|
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
|
$ |
7,532,844 |
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
| Demand |
|
|
|
|
|
|
|
|
|
| Noninterest bearing |
$ |
1,298,954 |
|
|
$ |
1,318,294 |
|
|
$ |
1,183,251 |
|
|
$ |
1,210,154 |
|
|
$ |
1,065,622 |
|
| Interest bearing |
|
2,019,661 |
|
|
|
1,543,708 |
|
|
|
1,507,441 |
|
|
|
1,317,938 |
|
|
|
1,293,626 |
|
| Savings and money market |
|
1,629,830 |
|
|
|
1,581,412 |
|
|
|
1,602,339 |
|
|
|
1,655,495 |
|
|
|
1,682,619 |
|
| Time |
|
1,254,409 |
|
|
|
1,248,287 |
|
|
|
1,337,840 |
|
|
|
1,442,790 |
|
|
|
1,633,041 |
|
|
Total deposits |
|
6,202,854 |
|
|
|
5,691,701 |
|
|
|
5,630,871 |
|
|
|
5,626,377 |
|
|
|
5,674,908 |
|
| Advances from the Federal Home
Loan Bank |
|
830,524 |
|
|
|
980,047 |
|
|
|
809,577 |
|
|
|
809,095 |
|
|
|
808,614 |
|
| Senior notes |
|
59,052 |
|
|
|
58,973 |
|
|
|
58,894 |
|
|
|
58,815 |
|
|
|
58,736 |
|
| Subordinated notes |
|
29,199 |
|
|
|
29,156 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Junior subordinated debentures
held by trust subsidiaries |
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
| Operating lease Liabilities
(2) |
|
137,808 |
|
|
|
135,651 |
|
|
|
136,595 |
|
|
|
48,709 |
|
|
|
49,627 |
|
| Accounts payable, accrued
liabilities and other liabilities |
|
116,177 |
|
|
|
96,734 |
|
|
|
106,411 |
|
|
|
69,469 |
|
|
|
77,713 |
|
|
Total liabilities |
|
7,439,792 |
|
|
|
7,056,440 |
|
|
|
6,806,526 |
|
|
|
6,676,643 |
|
|
|
6,733,776 |
|
| |
|
|
|
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
|
|
|
|
|
| Class A common stock |
|
3,375 |
|
|
|
3,434 |
|
|
|
3,589 |
|
|
|
2,903 |
|
|
|
2,904 |
|
| Class B common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
847 |
|
|
|
853 |
|
| Additional paid in
capital |
|
190,337 |
|
|
|
208,109 |
|
|
|
262,510 |
|
|
|
299,273 |
|
|
|
299,547 |
|
| Retained earnings |
|
570,588 |
|
|
|
565,963 |
|
|
|
553,167 |
|
|
|
489,854 |
|
|
|
472,823 |
|
| Accumulated other
comprehensive (loss) income |
|
(50,959 |
) |
|
|
(24,424 |
) |
|
|
15,217 |
|
|
|
21,236 |
|
|
|
23,758 |
|
|
Total stockholders' equity before noncontrolling interest |
|
713,341 |
|
|
|
753,082 |
|
|
|
834,483 |
|
|
|
814,113 |
|
|
|
799,885 |
|
| Noncontrolling interest |
|
(1,891 |
) |
|
|
(3,686 |
) |
|
|
(2,610 |
) |
|
|
(1,451 |
) |
|
|
(817 |
) |
|
Total stockholders' equity |
|
711,450 |
|
|
|
749,396 |
|
|
|
831,873 |
|
|
|
812,662 |
|
|
|
799,068 |
|
|
Total liabilities and stockholders' equity |
$ |
8,151,242 |
|
|
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
|
$ |
7,532,844 |
|
| |
|
|
|
|
|
|
|
|
|
__________(1) As of June 30, 2022 and March 31, 2022, includes a
valuation allowance of $0.2 million and $0.5 million, respectively,
as a result of fair value adjustment.(2) As of June 30, 2022, 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. Consists of total long-term lease liabilities.
Total short-term lease liabilities are included in other
liabilities.
Exhibit 7 - LoansLoans
by Type - Held For Investment
The loan portfolio held for investment consists of the following
loan classes:
| (in thousands) |
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
| Real estate loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
1,530,293 |
|
$ |
1,570,006 |
|
$ |
1,540,590 |
|
$ |
1,593,664 |
|
$ |
1,699,876 |
|
Multi-family residential |
|
532,066 |
|
|
540,726 |
|
|
514,679 |
|
|
504,337 |
|
|
658,022 |
|
Land development and construction loans |
|
288,581 |
|
|
296,609 |
|
|
327,246 |
|
|
318,449 |
|
|
361,077 |
| |
|
2,350,940 |
|
|
2,407,341 |
|
|
2,382,515 |
|
|
2,416,450 |
|
|
2,718,975 |
|
Single-family residential |
|
727,712 |
|
|
707,594 |
|
|
661,339 |
|
|
618,139 |
|
|
616,545 |
|
Owner occupied |
|
954,538 |
|
|
927,921 |
|
|
962,538 |
|
|
936,590 |
|
|
943,342 |
| |
|
4,033,190 |
|
|
4,042,856 |
|
|
4,006,392 |
|
|
3,971,179 |
|
|
4,278,862 |
| Commercial loans |
|
1,122,248 |
|
|
1,093,205 |
|
|
965,673 |
|
|
910,696 |
|
|
1,003,411 |
| Loans to financial
institutions and acceptances |
|
13,250 |
|
|
13,730 |
|
|
13,710 |
|
|
13,690 |
|
|
13,672 |
| Consumer loans and
overdrafts |
|
557,443 |
|
|
485,687 |
|
|
423,665 |
|
|
358,464 |
|
|
310,828 |
| Total loans |
$ |
5,726,131 |
|
$ |
5,635,478 |
|
$ |
5,409,440 |
|
$ |
5,254,029 |
|
$ |
5,606,773 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Type - Held For Sale
The loan portfolio held for sale consists of the following loan
classes:
| (in thousands) |
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
| Loans held for sale at
the lower of cost or fair value |
|
|
|
|
|
|
|
|
|
| Real estate loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
44,568 |
|
$ |
46,947 |
|
$ |
110,271 |
|
$ |
160,034 |
|
$ |
— |
|
Multi-family residential |
|
20,684 |
|
|
20,796 |
|
|
31,606 |
|
|
57,725 |
|
|
— |
| |
|
65,252 |
|
|
67,743 |
|
|
141,877 |
|
|
217,759 |
|
|
— |
|
Single-family residential |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Owner occupied |
|
1,297 |
|
|
1,306 |
|
|
1,318 |
|
|
1,324 |
|
|
— |
|
Total real estate loans |
|
66,549 |
|
|
69,049 |
|
|
143,195 |
|
|
219,083 |
|
|
— |
|
Less: valuation allowance |
|
159 |
|
|
458 |
|
|
— |
|
|
— |
|
|
— |
| Total loans held for sale at
the lower of cost or fair value (1) |
|
66,390 |
|
|
68,591 |
|
|
143,195 |
|
|
219,083 |
|
|
— |
| |
|
|
|
|
|
|
|
|
|
| Loans held for sale at
fair value |
|
|
|
|
|
|
|
|
|
|
Land development and construction loans |
|
2,366 |
|
|
836 |
|
|
— |
|
|
— |
|
|
— |
|
Single-family residential |
|
52,497 |
|
|
16,272 |
|
|
14,905 |
|
|
5,812 |
|
|
1,775 |
| Total loans held for sale at
fair value (2) |
|
54,863 |
|
|
17,108 |
|
|
14,905 |
|
|
5,812 |
|
|
1,775 |
|
Total loans held for sale (3) |
$ |
121,253 |
|
$ |
85,699 |
|
$ |
158,100 |
|
$ |
224,895 |
|
$ |
1,775 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________
(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 New York portfolio. There were no sales of loans in
this portfolio during the three months ended June 30, 2022.(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) |
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
| Non-Accrual
Loans(1) |
|
|
|
|
|
|
|
|
|
| Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
1,251 |
|
$ |
12,825 |
|
$ |
7,285 |
|
$ |
28,507 |
|
$ |
48,347 |
|
Multi-family residential |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9,928 |
| |
|
1,251 |
|
|
12,825 |
|
|
7,285 |
|
|
28,507 |
|
|
58,275 |
|
Single-family residential |
|
2,755 |
|
|
3,717 |
|
|
5,126 |
|
|
6,344 |
|
|
7,174 |
|
Owner occupied |
|
9,558 |
|
|
10,770 |
|
|
8,665 |
|
|
11,040 |
|
|
11,277 |
| |
|
13,564 |
|
|
27,312 |
|
|
21,076 |
|
|
45,891 |
|
|
76,726 |
| Commercial loans (2) (3) |
|
8,987 |
|
|
19,178 |
|
|
28,440 |
|
|
36,500 |
|
|
43,876 |
| Consumer loans and
overdrafts |
|
2,398 |
|
|
468 |
|
|
257 |
|
|
353 |
|
|
198 |
| Total Non-Accrual
Loans |
$ |
24,949 |
|
$ |
46,958 |
|
$ |
49,773 |
|
$ |
82,744 |
|
$ |
120,800 |
| |
|
|
|
|
|
|
|
|
|
| Past Due Accruing
Loans(4) |
|
|
|
|
|
|
|
|
|
| Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
|
Single-family residential |
|
162 |
|
|
— |
|
|
— |
|
|
4 |
|
|
20 |
| Commercial |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
295 |
| Consumer loans and
overdrafts |
|
42 |
|
|
10 |
|
|
8 |
|
|
1 |
|
|
4 |
| Total Past Due
Accruing Loans |
|
204 |
|
|
10 |
|
|
8 |
|
|
5 |
|
|
319 |
| Total Non-Performing
Loans |
|
25,153 |
|
|
46,968 |
|
|
49,781 |
|
|
82,749 |
|
|
121,119 |
| Other Real Estate
Owned |
|
6,545 |
|
|
9,720 |
|
|
9,720 |
|
|
9,800 |
|
|
400 |
| Total Non-Performing
Assets |
$ |
31,698 |
|
$ |
56,688 |
|
$ |
59,501 |
|
$ |
92,549 |
|
$ |
121,519 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________(1) Includes loan modifications that met the
definition of TDRs which may be performing in accordance with their
modified loan terms. As of June 30, 2022, March 31, 2022, December
31, 2021, September 30, 2021 and June 30, 2021, non-performing TDRs
include $8.3 million, $8.6 million, $9.1 million, $9.3 million and
$9.6 million, respectively, in a multiple loan relationship to a
South Florida borrower.(2) As of March 31, 2022, December 31, 2021,
September 30, 2021 and June 30, 2021, includes $9.1 million, $9.1
million, $13.9 million 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. Furthermore, In the second quarter of 2022, the Company
collected an additional partial principal payment of $5.5 million
and charged off the remaining balance of $3.6 million against the
allowance for loans losses. Therefore, as of June 30, 2022, there
were no outstanding balances associated with this loan
relationship.(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. The Company has not purchased credit-impaired
loans.
| |
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 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 |
$ |
29,799 |
$ |
— |
$ |
1,257 |
$ |
31,056 |
|
$ |
3,221 |
$ |
11,522 |
$ |
1,303 |
$ |
16,046 |
|
$ |
32,858 |
$ |
36,040 |
$ |
12,306 |
$ |
81,204 |
|
Multi-family residential |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
9,928 |
|
— |
|
9,928 |
|
Land developmentand construction loans |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
| |
|
29,799 |
|
— |
|
1,257 |
|
31,056 |
|
|
3,221 |
|
11,522 |
|
1,303 |
|
16,046 |
|
|
32,858 |
|
45,968 |
|
12,306 |
|
91,132 |
|
Single-family residential |
|
— |
|
3,011 |
|
— |
|
3,011 |
|
|
— |
|
3,812 |
|
— |
|
3,812 |
|
|
— |
|
7,194 |
|
— |
|
7,194 |
|
Owner occupied |
|
— |
|
9,649 |
|
— |
|
9,649 |
|
|
7,383 |
|
10,862 |
|
— |
|
18,245 |
|
|
19,456 |
|
11,375 |
|
— |
|
30,831 |
| |
|
29,799 |
|
12,660 |
|
1,257 |
|
43,716 |
|
|
10,604 |
|
26,196 |
|
1,303 |
|
38,103 |
|
|
52,314 |
|
64,537 |
|
12,306 |
|
129,157 |
| Commercial loans (2) |
|
7,873 |
|
9,663 |
|
604 |
|
18,140 |
|
|
25,545 |
|
18,519 |
|
1,989 |
|
46,053 |
|
|
40,151 |
|
23,055 |
|
22,546 |
|
85,752 |
| Consumer loans and
overdrafts |
|
— |
|
2,398 |
|
— |
|
2,398 |
|
|
— |
|
468 |
|
— |
|
468 |
|
|
— |
|
201 |
|
— |
|
201 |
| |
$ |
37,672 |
$ |
24,721 |
$ |
1,861 |
$ |
64,254 |
|
$ |
36,149 |
$ |
45,183 |
$ |
3,292 |
$ |
84,624 |
|
$ |
92,465 |
$ |
87,793 |
$ |
34,852 |
$ |
215,110 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________(1) There were no loans categorized as “Loss” as of
the dates presented.(2) Loan balances as of March 31, 2022 include
$9.1 million in a commercial relationship placed in nonaccrual
status and downgraded during the second quarter of 2020 ($19.6
million at June 30, 2021). As of March 31, 2022, Substandard loans
include $7.9 million and doubtful loans include $1.2 million
related to this commercial relationship (Substandard loans include
$7.3 million and doubtful loans include $12.3 million at June 30,
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. Furthermore,
in the second quarter of 2022, the Company collected an additional
partial principal payment of $5.5 million and charged off the
remaining balance of $3.6 million against the allowance for loans
losses. Therefore, as of June 30, 2022, there were no outstanding
balances associated with this loan relationship.
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) |
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
| |
|
|
Domestic |
$ |
3,722,433 |
|
$ |
3,180,112 |
|
$ |
3,137,258 |
|
$ |
3,090,563 |
|
$ |
3,140,541 |
| Foreign: |
|
|
|
|
|
|
|
|
|
|
Venezuela |
|
1,964,796 |
|
|
2,004,305 |
|
|
2,019,480 |
|
|
2,054,149 |
|
|
2,075,658 |
|
Others |
|
515,625 |
|
|
507,284 |
|
|
474,133 |
|
|
481,665 |
|
|
458,709 |
| Total foreign |
|
2,480,421 |
|
|
2,511,589 |
|
|
2,493,613 |
|
|
2,535,814 |
|
|
2,534,367 |
| Total deposits |
$ |
6,202,854 |
|
$ |
5,691,701 |
|
$ |
5,630,871 |
|
$ |
5,626,377 |
|
$ |
5,674,908 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACTS:InvestorsLaura
RossiInvestorRelations@amerantbank.com(305) 460-8728
MediaSilvia M. LarrieuMediaRelations@amerantbank.com(305)
441-8414
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