Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”)
today reported net income attributable to the Company of $20.9
million in the third quarter of 2022, or $0.62 per diluted share,
an increase compared to net income attributable to the Company of
$7.7 million, or $0.23 per diluted share, in the second quarter of
2022, and an increase compared to the net income attributable to
the Company of $17.0 million, or $0.45 per diluted share, in the
third quarter of 2021.
“We are pleased to report continued improvement
in our operating results this quarter,” stated Chairman and CEO
Jerry Plush. “Strong loan and deposit growth, coupled with a higher
net interest margin, were key factors driving earnings growth for
the period.”
Financial Highlights:
- Total assets increased $588.7
million, or 7.22%, to $8.7 billion compared to $8.2 billion as of
2Q22.
- Total gross loans increased $656.0
million, or 11.2%, to $6.50 billion compared to $5.85 billion in
2Q22.
- Average yield on loans increased to
5.06% in 3Q22 compared to 4.38% in 2Q22.
- Non-performing loans declined $6.4
million, or 25.5%, to $18.7 million, as of 3Q22 compared to $25.2
million as of 2Q22.
- Total deposits as of 3Q22 were $6.59 billion, up $385.3
million, or 6.21%, compared to $6.20 billion in 2Q22.
- Core deposits were $5.20 billion, up $253.2 million, or 5.1%,
compared to 2Q22.
- Average cost of total deposits increased to 0.83% in 3Q22
compared to 0.48% in 2Q22.
- Loan to deposit ratio was 98.71% compared to 94.27% in
2Q22.
- AUM totaled $1.81 billion, down
$56.8 million, or 3.0%, from $1.87 billion in 2Q22.
- Net income attributable to the
Company of $20.9 million in 3Q22, up $13.2 million, or 172.6%,
compared to $7.7 million in 2Q22.
- Core Pre-Provision Net Revenue
(“Core PPNR”)1 grew to $30.3 million in 3Q22, up $10.9 million, or
55.9%, from $19.4 million in 2Q22.
- Net Interest Income (“NII”) was
$69.9 million, up $11.0 million, or 18.6%, from $58.9 million in
2Q22.
- Net Interest Margin (“NIM”)
increased to 3.61% in 3Q22 compared to 3.28% in 2Q22.
- Provision for loan losses was $3.0
million for 3Q22 compared to no provision for loan losses or
release recorded in 2Q22.
- Non-interest income was $16.0
million in 3Q22, up $3.0 million, or 23.4%, from $12.9 million in
2Q22.
- Non-interest expense was $56.1
million, down $6.1 million, or 9.8%, from $62.2 million in
2Q22.
- The efficiency ratio was 65.4% in
3Q22 compared to 86.6% in 2Q22.
- Return on average assets (“ROA”)
was 1.00% and return on average equity (“ROE”) was 11.28% in 3Q22
compared to 0.39% and 4.14% in 2Q22, respectively.
On October 19, 2022, the Company’s board of
directors declared a cash dividend of $0.09 per common share. The
dividend is payable on November 30, 2022 to shareholders of record
on November 15, 2022.
1 Non-GAAP measure, see “Non-GAAP Financial
Measures” for more information and Exhibit 2 for a reconciliation
to GAAP.
Third Quarter 2022 Earnings Conference
Call
The Company will hold an earnings conference
call on Friday, October 21, 2022 at 9:00 a.m. (Eastern Time) to
discuss its third 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 23 banking centers – 16
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 reports on Form 10-Q for the
quarters ended March 31, 2022, and June 30, 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 nine month periods ended
September 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 interim unaudited and annual audited consolidated
financial statements.
(in thousands) |
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
Consolidated Balance
Sheets |
|
|
|
|
|
|
(audited) |
|
|
Total assets |
$ |
8,739,979 |
|
$ |
8,151,242 |
|
$ |
7,805,836 |
|
$ |
7,638,399 |
|
$ |
7,489,305 |
Total investments |
|
1,352,782 |
|
|
1,422,479 |
|
|
1,324,969 |
|
|
1,341,241 |
|
|
1,422,738 |
Total gross loans (1) |
|
6,503,359 |
|
|
5,847,384 |
|
|
5,721,177 |
|
|
5,567,540 |
|
|
5,478,924 |
Allowance for loan losses |
|
53,711 |
|
|
52,027 |
|
|
56,051 |
|
|
69,899 |
|
|
83,442 |
Total deposits |
|
6,588,122 |
|
|
6,202,854 |
|
|
5,691,701 |
|
|
5,630,871 |
|
|
5,626,377 |
Core deposits (2) |
|
5,201,681 |
|
|
4,948,445 |
|
|
4,443,414 |
|
|
4,293,031 |
|
|
4,183,587 |
Advances from the FHLB and
other borrowings |
|
981,005 |
|
|
830,524 |
|
|
980,047 |
|
|
809,577 |
|
|
809,095 |
Senior notes |
|
59,131 |
|
|
59,052 |
|
|
58,973 |
|
|
58,894 |
|
|
58,815 |
Subordinated notes (3) |
|
29,241 |
|
|
29,199 |
|
|
29,156 |
|
|
— |
|
|
— |
Junior subordinated
debentures |
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
Stockholders' equity
(4)(5)(6)(7) |
|
695,698 |
|
|
711,450 |
|
|
749,396 |
|
|
831,873 |
|
|
812,662 |
Assets under management and
custody (8) |
|
1,811,265 |
|
|
1,868,017 |
|
|
2,129,387 |
|
|
2,221,077 |
|
|
2,188,317 |
|
Three Months Ended |
|
Nine Months Ended September 30, |
(in thousands, except
percentages, share data and per share amounts) |
September 30,2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
Consolidated Results
of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
69,897 |
|
|
$ |
58,945 |
|
|
$ |
55,645 |
|
|
$ |
55,780 |
|
|
$ |
51,821 |
|
|
$ |
184,487 |
|
|
$ |
149,361 |
|
Provision for (reversal of)
loan losses |
|
3,000 |
|
|
|
— |
|
|
|
(10,000 |
) |
|
|
(6,500 |
) |
|
|
(5,000 |
) |
|
|
(7,000 |
) |
|
|
(10,000 |
) |
Noninterest income |
|
15,956 |
|
|
|
12,931 |
|
|
|
14,025 |
|
|
|
77,290 |
|
|
|
13,434 |
|
|
|
42,912 |
|
|
|
43,331 |
|
Noninterest expense |
|
56,113 |
|
|
|
62,241 |
|
|
|
60,818 |
|
|
|
55,088 |
|
|
|
48,404 |
|
|
|
179,172 |
|
|
|
143,154 |
|
Net income attributable to
Amerant Bancorp Inc. (9) |
|
20,920 |
|
|
|
7,674 |
|
|
|
15,950 |
|
|
|
65,469 |
|
|
|
17,031 |
|
|
|
44,544 |
|
|
|
47,452 |
|
Effective income tax rate |
|
21.93 |
% |
|
|
21.10 |
% |
|
|
21.10 |
% |
|
|
23.88 |
% |
|
|
24.96 |
% |
|
|
21.50 |
% |
|
|
22.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' book value per
common share |
$ |
20.60 |
|
|
$ |
21.07 |
|
|
$ |
21.82 |
|
|
$ |
23.18 |
|
|
$ |
21.68 |
|
|
$ |
20.60 |
|
|
$ |
21.68 |
|
Tangible stockholders' equity
(book value) per common share (10) |
$ |
19.92 |
|
|
$ |
20.40 |
|
|
$ |
21.15 |
|
|
$ |
22.55 |
|
|
$ |
21.08 |
|
|
$ |
19.92 |
|
|
$ |
21.08 |
|
Basic earnings per common
share |
$ |
0.62 |
|
|
$ |
0.23 |
|
|
$ |
0.46 |
|
|
$ |
1.79 |
|
|
$ |
0.46 |
|
|
$ |
1.31 |
|
|
$ |
1.27 |
|
Diluted earnings per common
share (11) |
$ |
0.62 |
|
|
$ |
0.23 |
|
|
$ |
0.45 |
|
|
$ |
1.77 |
|
|
$ |
0.45 |
|
|
$ |
1.30 |
|
|
$ |
1.26 |
|
Basic weighted average shares
outstanding |
|
33,476,418 |
|
|
|
33,675,930 |
|
|
|
34,819,984 |
|
|
|
36,606,969 |
|
|
|
37,133,783 |
|
|
|
33,985,856 |
|
|
|
37,358,780 |
|
Diluted weighted average
shares outstanding (11) |
|
33,746,878 |
|
|
|
33,914,529 |
|
|
|
35,114,043 |
|
|
|
37,064,769 |
|
|
|
37,518,293 |
|
|
|
34,253,562 |
|
|
|
37,683,834 |
|
Cash dividend declared per
common share (7) |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.06 |
|
|
$ |
— |
|
|
$ |
0.27 |
|
|
$ |
— |
|
|
Three Months Ended |
|
Nine Months Ended September 30, |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
2022 |
|
2021 |
Other Financial and
Operating Data (12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
Indicators (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / Average total interest earning assets (NIM)
(13) |
3.61 |
% |
|
3.28 |
% |
|
3.18 |
% |
|
3.17 |
% |
|
2.94 |
% |
|
3.36 |
% |
|
2.81 |
% |
Net income / Average total
assets (ROA) (14) |
1.00 |
% |
|
0.39 |
% |
|
0.84 |
% |
|
3.45 |
% |
|
0.90 |
% |
|
0.75 |
% |
|
0.83 |
% |
Net income / Average
stockholders' equity (ROE) (15) |
11.28 |
% |
|
4.14 |
% |
|
8.10 |
% |
|
32.04 |
% |
|
8.38 |
% |
|
7.84 |
% |
|
8.01 |
% |
Noninterest income / Total
revenue (16) |
18.59 |
% |
|
17.99 |
% |
|
20.13 |
% |
|
58.08 |
% |
|
20.59 |
% |
|
18.87 |
% |
|
22.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Indicators
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital ratio (17) |
12.49 |
% |
|
13.21 |
% |
|
13.80 |
% |
|
14.56 |
% |
|
14.53 |
% |
|
12.49 |
% |
|
14.53 |
% |
Tier 1 capital ratio (18) |
11.34 |
% |
|
11.99 |
% |
|
12.48 |
% |
|
13.45 |
% |
|
13.28 |
% |
|
11.34 |
% |
|
13.28 |
% |
Tier 1 leverage ratio
(19) |
9.88 |
% |
|
10.25 |
% |
|
10.67 |
% |
|
11.52 |
% |
|
11.18 |
% |
|
9.88 |
% |
|
11.18 |
% |
Common equity tier 1 capital
ratio (CET1) (20) |
10.50 |
% |
|
11.08 |
% |
|
11.55 |
% |
|
12.50 |
% |
|
12.31 |
% |
|
10.50 |
% |
|
12.31 |
% |
Tangible common equity ratio
(21) |
7.72 |
% |
|
8.47 |
% |
|
9.34 |
% |
|
10.63 |
% |
|
10.58 |
% |
|
7.72 |
% |
|
10.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity Ratios
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to Deposits |
98.71 |
% |
|
94.27 |
% |
|
100.52 |
% |
|
98.88 |
% |
|
97.38 |
% |
|
98.71 |
% |
|
97.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Indicators (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets / Total
assets (22) |
0.29 |
% |
|
0.39 |
% |
|
0.73 |
% |
|
0.78 |
% |
|
1.24 |
% |
|
0.29 |
% |
|
1.24 |
% |
Non-performing loans / Total
gross loans (1) (23) |
0.29 |
% |
|
0.43 |
% |
|
0.82 |
% |
|
0.89 |
% |
|
1.51 |
% |
|
0.29 |
% |
|
1.51 |
% |
Allowance for loan losses /
Total non-performing loans (23) |
287.56 |
% |
|
206.84 |
% |
|
119.34 |
% |
|
140.41 |
% |
|
100.84 |
% |
|
287.56 |
% |
|
100.84 |
% |
Allowance for loan losses /
Total loans held for investment (1) |
0.83 |
% |
|
0.91 |
% |
|
0.99 |
% |
|
1.29 |
% |
|
1.59 |
% |
|
0.83 |
% |
|
1.59 |
% |
Net charge-offs /
Average total loans held for investment (24) |
0.09 |
% |
|
0.29 |
% |
|
0.29 |
% |
|
0.52 |
% |
|
1.16 |
% |
|
0.22 |
% |
|
0.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Indicators
(% except FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense / Average
total assets |
2.67 |
% |
|
3.18 |
% |
|
3.20 |
% |
|
2.90 |
% |
|
2.55 |
% |
|
3.02 |
% |
|
2.50 |
% |
Salaries and employee benefits
/ Average total assets |
1.43 |
% |
|
1.54 |
% |
|
1.60 |
% |
|
1.65 |
% |
|
1.53 |
% |
|
1.53 |
% |
|
1.51 |
% |
Other operating expenses/
Average total assets (25) |
1.24 |
% |
|
1.64 |
% |
|
1.60 |
% |
|
1.25 |
% |
|
1.02 |
% |
|
1.49 |
% |
|
0.99 |
% |
Efficiency ratio (26) |
65.36 |
% |
|
86.59 |
% |
|
87.29 |
% |
|
41.40 |
% |
|
74.18 |
% |
|
78.79 |
% |
|
74.29 |
% |
Full-Time-Equivalent Employees
(FTEs) (27) |
681 |
|
|
680 |
|
|
677 |
|
|
763 |
|
|
733 |
|
|
681 |
|
|
733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended September 30, |
(in thousands, except
percentages and per share amounts) |
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
Core Selected
Consolidated Results of Operations and Other Data
(10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net revenue (PPNR) |
$ |
29,784 |
|
|
$ |
9,707 |
|
|
$ |
9,928 |
|
|
$ |
79,141 |
|
|
$ |
17,485 |
|
|
$ |
49,419 |
|
|
$ |
50,989 |
|
Core pre-provision net revenue
(Core PPNR) |
$ |
30,325 |
|
|
$ |
19,447 |
|
|
$ |
17,869 |
|
|
$ |
18,911 |
|
|
$ |
18,297 |
|
|
$ |
67,641 |
|
|
$ |
50,996 |
|
Core net income |
$ |
21,275 |
|
|
$ |
15,358 |
|
|
$ |
22,216 |
|
|
$ |
19,339 |
|
|
$ |
17,669 |
|
|
$ |
58,849 |
|
|
$ |
47,457 |
|
Core basic earnings per common
share |
|
0.64 |
|
|
|
0.46 |
|
|
|
0.64 |
|
|
|
0.53 |
|
|
|
0.48 |
|
|
|
1.73 |
|
|
|
1.27 |
|
Core earnings per diluted
common share (11) |
|
0.63 |
|
|
|
0.45 |
|
|
|
0.63 |
|
|
|
0.52 |
|
|
|
0.47 |
|
|
|
1.72 |
|
|
|
1.26 |
|
Core net income / Average
total assets (Core ROA) (14) |
|
1.01 |
% |
|
|
0.78 |
% |
|
|
1.17 |
% |
|
|
1.02 |
% |
|
|
0.93 |
% |
|
|
0.99 |
% |
|
|
0.83 |
% |
Core net income / Average
stockholders' equity (Core ROE) (15) |
|
11.47 |
% |
|
|
8.28 |
% |
|
|
11.28 |
% |
|
|
9.46 |
% |
|
|
8.69 |
% |
|
|
10.36 |
% |
|
|
8.01 |
% |
Core efficiency ratio
(28) |
|
64.14 |
% |
|
|
73.68 |
% |
|
|
76.36 |
% |
|
|
74.98 |
% |
|
|
72.95 |
% |
|
|
71.0 |
% |
|
|
73.58 |
% |
__________________(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. As of the third quarter of 2022, loans held for sale mainly
consisted of residential mortgage loans and the NYC CRE loans held
for sale that were transferred to the loans held for investment
category. Also, in 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 September 30, 2022, June 30, 2022, March 31,
2022, December 31, 2021 and September 30, 2021, total loans include
$57.6 million, $54.9 million, $17.1 million, $14.9 million and $5.8
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 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 the 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
Subordinated Notes. 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 launch 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 quarter of 2021, the Company repurchased an aggregate of
63,000 shares of Class B common stock at a weighted average price
per share of $18.55, 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 third, second and first quarters of 2022, and in
the fourth quarter of 2021, the Company’s Board of Directors
declared cash dividends of $0.09, $0.09, $0.09 and $0.06 per share
of the Company’s common stock, respectively. The dividend declared
in the third quarter of 2022 was paid on August 31, 2022 to
shareholders of record at the close of business on August 17,
2022.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 third, second and
first quarters of 2022, and in the fourth quarter of 2021 was $3.0
million, $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 September 30, 2022, June 30, 2022, March 31, 2022,
December 31, 2021 and September 30, 2021, net income exclude losses
of $44 thousand, $0.1 million, $1.1 million, $1.2 million and $0.6
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 stock
units. 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 all the periods shown, 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 third, second and first quarters of
2022, and the fourth and third quarters of 2021, there were net
charge offs of $1.3 million, $4.0 million, $3.8 million, $7.0
million and $15.7 million, respectively. During the third quarter
of 2022, the Company charged-off $1.7 million related to multiple
consumer loans and $0.2 million in connection with two commercial
loans. 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 September 30,
2022, June 30, 2022, March 31, 2022, December 31, 2021 and
September 30, 2021 includes 67, 67, 79, 72 and 52 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, |
|
Nine Months Ended September 30, |
(in thousands) |
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Amerant Bancorp Inc. |
$ |
20,920 |
|
|
$ |
7,674 |
|
|
$ |
15,950 |
|
|
$ |
65,469 |
|
|
$ |
17,031 |
|
|
$ |
44,544 |
|
|
$ |
47,452 |
|
Plus: provision for (reversal
of) loan losses |
|
3,000 |
|
|
|
— |
|
|
|
(10,000 |
) |
|
|
(6,500 |
) |
|
|
(5,000 |
) |
|
|
(7,000 |
) |
|
|
(10,000 |
) |
Plus: provision for income tax
expense (1) |
|
5,864 |
|
|
|
2,033 |
|
|
|
3,978 |
|
|
|
20,172 |
|
|
|
5,454 |
|
|
|
11,875 |
|
|
|
13,537 |
|
Pre-provision net revenue
(PPNR) |
|
29,784 |
|
|
|
9,707 |
|
|
|
9,928 |
|
|
|
79,141 |
|
|
|
17,485 |
|
|
|
49,419 |
|
|
|
50,989 |
|
Plus: non-routine noninterest
expense items |
|
1,954 |
|
|
|
7,995 |
|
|
|
6,574 |
|
|
|
1,895 |
|
|
|
758 |
|
|
|
16,523 |
|
|
|
5,162 |
|
(Less) Plus: non-routine
noninterest income items |
|
(1,413 |
) |
|
|
1,745 |
|
|
|
1,367 |
|
|
|
(62,125 |
) |
|
|
54 |
|
|
|
1,699 |
|
|
|
(5,155 |
) |
Core pre-provision net
revenue (Core PPNR) |
$ |
30,325 |
|
|
$ |
19,447 |
|
|
$ |
17,869 |
|
|
$ |
18,911 |
|
|
$ |
18,297 |
|
|
$ |
67,641 |
|
|
$ |
50,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
$ |
15,956 |
|
|
$ |
12,931 |
|
|
$ |
14,025 |
|
|
$ |
77,290 |
|
|
$ |
13,434 |
|
|
$ |
42,912 |
|
|
$ |
43,331 |
|
Less: Non-routine noninterest
income items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: gain on sale of Headquarters building (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
62,387 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Derivatives (losses) gains, net |
|
(95 |
) |
|
|
855 |
|
|
|
(1,345 |
) |
|
|
— |
|
|
|
— |
|
|
|
(585 |
) |
|
|
— |
|
Securities gains (losses), net |
|
1,508 |
|
|
|
(2,602 |
) |
|
|
769 |
|
|
|
(117 |
) |
|
|
(54 |
) |
|
|
(325 |
) |
|
|
3,857 |
|
Gain (loss) on early extinguishment of FHLB advances, net |
|
— |
|
|
|
2 |
|
|
|
(714 |
) |
|
|
— |
|
|
|
— |
|
|
|
(712 |
) |
|
|
(2,488 |
) |
(Loss) gain on sale of loans |
|
— |
|
|
|
— |
|
|
|
(77 |
) |
|
|
(145 |
) |
|
|
— |
|
|
|
(77 |
) |
|
|
3,786 |
|
Total non-routine noninterest income items |
$ |
1,413 |
|
|
$ |
(1,745 |
) |
|
$ |
(1,367 |
) |
|
$ |
62,125 |
|
|
$ |
(54 |
) |
|
$ |
(1,699 |
) |
|
$ |
5,155 |
|
Core noninterest
income |
$ |
14,543 |
|
|
$ |
14,676 |
|
|
$ |
15,392 |
|
|
$ |
15,165 |
|
|
$ |
13,488 |
|
|
$ |
44,611 |
|
|
$ |
38,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
expenses |
$ |
56,113 |
|
|
$ |
62,241 |
|
|
$ |
60,818 |
|
|
$ |
55,088 |
|
|
$ |
48,404 |
|
|
$ |
179,172 |
|
|
$ |
143,154 |
|
Less: non-routine noninterest expense items |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Staff reduction costs (3) |
|
358 |
|
|
|
674 |
|
|
|
765 |
|
|
|
26 |
|
|
|
250 |
|
|
|
1,797 |
|
|
|
3,578 |
|
Contract termination costs (4) |
|
289 |
|
|
|
2,802 |
|
|
|
4,012 |
|
|
|
— |
|
|
|
— |
|
|
|
7,103 |
|
|
|
— |
|
Legal and Consulting fees (5) |
|
1,073 |
|
|
|
80 |
|
|
|
1,246 |
|
|
|
1,277 |
|
|
|
412 |
|
|
|
2,399 |
|
|
|
412 |
|
Digital transformation expenses |
|
— |
|
|
|
— |
|
|
|
45 |
|
|
|
50 |
|
|
|
96 |
|
|
|
45 |
|
|
|
362 |
|
Lease impairment charge (6) |
|
— |
|
|
|
1,565 |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
1,579 |
|
|
|
810 |
|
Branch closure expenses (7) |
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
542 |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
Total restructuring costs |
$ |
1,720 |
|
|
$ |
5,121 |
|
|
$ |
6,115 |
|
|
$ |
1,895 |
|
|
$ |
758 |
|
|
$ |
12,956 |
|
|
$ |
5,162 |
|
Other non-routine noninterest expense items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned valuation expense (8) |
|
234 |
|
|
|
3,174 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,408 |
|
|
|
— |
|
Loans held for sale valuation (reversal) expense (9) |
|
— |
|
|
|
(300 |
) |
|
|
459 |
|
|
|
— |
|
|
|
— |
|
|
|
159 |
|
|
|
— |
|
Total non-routine noninterest expense items |
$ |
1,954 |
|
|
$ |
7,995 |
|
|
$ |
6,574 |
|
|
$ |
1,895 |
|
|
$ |
758 |
|
|
$ |
16,523 |
|
|
$ |
5,162 |
|
Core noninterest
expenses |
$ |
54,159 |
|
|
$ |
54,246 |
|
|
$ |
54,244 |
|
|
$ |
53,193 |
|
|
$ |
47,646 |
|
|
$ |
162,649 |
|
|
$ |
137,992 |
|
(in thousands, except
percentages and per share amounts) |
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
|
2022 |
|
|
|
2021 |
|
Net income attributable to
Amerant Bancorp Inc. |
$ |
20,920 |
|
|
$ |
7,674 |
|
|
$ |
15,950 |
|
|
$ |
65,469 |
|
|
$ |
17,031 |
|
|
$ |
44,544 |
|
|
$ |
47,452 |
|
Plus after-tax non-routine
items in noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-routine items in
noninterest expense before income tax effect |
|
1,954 |
|
|
|
7,995 |
|
|
|
6,574 |
|
|
|
1,895 |
|
|
|
758 |
|
|
|
16,523 |
|
|
|
5,162 |
|
Income tax effect (10) |
|
(478 |
) |
|
|
(1,687 |
) |
|
|
(1,387 |
) |
|
|
(478 |
) |
|
|
(229 |
) |
|
|
(3,552 |
) |
|
|
(1,174 |
) |
Total after-tax non-routine
items in noninterest expense |
|
1,476 |
|
|
|
6,308 |
|
|
|
5,187 |
|
|
|
1,417 |
|
|
|
529 |
|
|
|
12,971 |
|
|
|
3,988 |
|
Plus (less) after-tax
non-routine items in noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-routine items in
noninterest income before income tax effect |
|
(1,413 |
) |
|
|
1,745 |
|
|
|
1,367 |
|
|
|
(62,125 |
) |
|
|
54 |
|
|
|
1,699 |
|
|
|
(5,155 |
) |
Income tax effect (10) |
|
292 |
|
|
|
(369 |
) |
|
|
(288 |
) |
|
|
14,578 |
|
|
|
55 |
|
|
|
(365 |
) |
|
|
1,172 |
|
Total after-tax non-routine
items in noninterest income |
|
(1,121 |
) |
|
|
1,376 |
|
|
|
1,079 |
|
|
|
(47,547 |
) |
|
|
109 |
|
|
|
1,334 |
|
|
|
(3,983 |
) |
Core net
income |
$ |
21,275 |
|
|
$ |
15,358 |
|
|
$ |
22,216 |
|
|
$ |
19,339 |
|
|
$ |
17,669 |
|
|
$ |
58,849 |
|
|
$ |
47,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.62 |
|
|
$ |
0.23 |
|
|
$ |
0.46 |
|
|
$ |
1.79 |
|
|
$ |
0.46 |
|
|
$ |
1.31 |
|
|
$ |
1.27 |
|
Plus: after tax impact of
non-routine items in noninterest expense |
|
0.04 |
|
|
|
0.19 |
|
|
|
0.15 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.38 |
|
|
|
0.11 |
|
(Less) Plus: after tax impact
of non-routine items in noninterest income |
|
(0.02 |
) |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
(1.30 |
) |
|
|
— |
|
|
|
0.04 |
|
|
|
(0.11 |
) |
Total core basic
earnings per common share |
$ |
0.64 |
|
|
$ |
0.46 |
|
|
$ |
0.64 |
|
|
$ |
0.53 |
|
|
$ |
0.48 |
|
|
$ |
1.73 |
|
|
$ |
1.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(11) |
$ |
0.62 |
|
|
$ |
0.23 |
|
|
$ |
0.45 |
|
|
$ |
1.77 |
|
|
$ |
0.45 |
|
|
$ |
1.30 |
|
|
$ |
1.26 |
|
Plus: after tax impact of
non-routine items in noninterest expense |
|
0.04 |
|
|
|
0.18 |
|
|
|
0.15 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.39 |
|
|
|
0.11 |
|
(Less) Plus: after tax impact
of non-routine items in noninterest income |
|
(0.03 |
) |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
(1.29 |
) |
|
|
— |
|
|
|
0.03 |
|
|
|
(0.11 |
) |
Total core diluted
earnings per common share |
$ |
0.63 |
|
|
$ |
0.45 |
|
|
$ |
0.63 |
|
|
$ |
0.52 |
|
|
$ |
0.47 |
|
|
$ |
1.72 |
|
|
$ |
1.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / Average total
assets (ROA) |
|
1.00 |
% |
|
|
0.39 |
% |
|
|
0.84 |
% |
|
|
3.45 |
% |
|
|
0.90 |
% |
|
|
0.75 |
% |
|
|
0.83 |
% |
Plus: after tax impact of
non-routine items in noninterest expense |
|
0.07 |
% |
|
|
0.32 |
% |
|
|
0.28 |
% |
|
|
0.07 |
% |
|
|
0.02 |
% |
|
|
0.22 |
% |
|
|
0.07 |
% |
(Less) Plus: after tax impact
of non-routine items in noninterest income |
|
(0.06 |
)% |
|
|
0.07 |
% |
|
|
0.06 |
% |
|
|
(2.50 |
)% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
(0.07 |
)% |
Core net income /
Average total assets (Core ROA) |
|
1.01 |
% |
|
|
0.78 |
% |
|
|
1.18 |
% |
|
|
1.02 |
% |
|
|
0.93 |
% |
|
|
0.99 |
% |
|
|
0.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / Average
stockholders' equity (ROE) |
|
11.28 |
% |
|
|
4.14 |
% |
|
|
8.10 |
% |
|
|
32.04 |
% |
|
|
8.38 |
% |
|
|
7.84 |
% |
|
|
8.01 |
% |
Plus: after tax impact of
non-routine items in noninterest expense |
|
0.80 |
% |
|
|
3.40 |
% |
|
|
2.63 |
% |
|
|
0.69 |
% |
|
|
0.26 |
% |
|
|
2.28 |
% |
|
|
0.67 |
% |
(Less) Plus: after tax impact
of non-routine items in noninterest income |
|
(0.61 |
)% |
|
|
0.74 |
% |
|
|
0.55 |
% |
|
|
(23.27 |
)% |
|
|
0.05 |
% |
|
|
0.24 |
% |
|
|
(0.67 |
)% |
Core net income /
Average stockholders' equity (Core ROE) |
|
11.47 |
% |
|
|
8.28 |
% |
|
|
11.28 |
% |
|
|
9.46 |
% |
|
|
8.69 |
% |
|
|
10.36 |
% |
|
|
8.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
65.36 |
% |
|
|
86.59 |
% |
|
|
87.29 |
% |
|
|
41.40 |
% |
|
|
74.18 |
% |
|
|
78.79 |
% |
|
|
74.29 |
% |
Less: impact of non-routine
items in noninterest expense |
|
(2.28 |
)% |
|
|
(11.12 |
)% |
|
|
(9.43 |
)% |
|
|
(1.43 |
)% |
|
|
(1.16 |
)% |
|
|
(7.26 |
)% |
|
|
(2.68 |
)% |
Plus (Less): impact of
non-routine items in noninterest income |
|
1.06 |
% |
|
|
(1.79 |
)% |
|
|
(1.50 |
)% |
|
|
35.01 |
% |
|
|
(0.07 |
)% |
|
|
(0.53 |
)% |
|
|
1.97 |
% |
Core efficiency
ratio |
|
64.14 |
% |
|
|
73.68 |
% |
|
|
76.36 |
% |
|
|
74.98 |
% |
|
|
72.95 |
% |
|
|
71.00 |
% |
|
|
73.58 |
% |
|
Three Months Ended, |
|
Nine Months Ended September 30, |
(in thousands, except
percentages, share data and per share amounts) |
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
$ |
695,698 |
|
|
$ |
711,450 |
|
|
$ |
749,396 |
|
|
$ |
831,873 |
|
|
$ |
812,662 |
|
|
$ |
695,698 |
|
|
$ |
812,662 |
|
Less: goodwill and other
intangibles (12) |
|
(22,814 |
) |
|
|
(22,808 |
) |
|
|
(22,795 |
) |
|
|
(22,528 |
) |
|
|
(22,529 |
) |
|
|
(22,814 |
) |
|
|
(22,529 |
) |
Tangible common stockholders'
equity |
$ |
672,884 |
|
|
$ |
688,642 |
|
|
$ |
726,601 |
|
|
$ |
809,345 |
|
|
$ |
790,133 |
|
|
$ |
672,884 |
|
|
$ |
790,133 |
|
Total assets |
|
8,739,979 |
|
|
|
8,151,242 |
|
|
|
7,805,836 |
|
|
|
7,638,399 |
|
|
|
7,489,305 |
|
|
|
8,739,979 |
|
|
|
7,489,305 |
|
Less: goodwill and other
intangibles (12) |
|
(22,814 |
) |
|
|
(22,808 |
) |
|
|
(22,795 |
) |
|
|
(22,528 |
) |
|
|
(22,529 |
) |
|
|
(22,814 |
) |
|
|
(22,529 |
) |
Tangible assets |
$ |
8,717,165 |
|
|
$ |
8,128,434 |
|
|
$ |
7,783,041 |
|
|
$ |
7,615,871 |
|
|
$ |
7,466,776 |
|
|
$ |
8,717,165 |
|
|
$ |
7,466,776 |
|
Common shares outstanding |
|
33,773,249 |
|
|
|
33,759,604 |
|
|
|
34,350,822 |
|
|
|
35,883,320 |
|
|
|
37,487,339 |
|
|
|
33,773,249 |
|
|
|
37,487,339 |
|
Tangible common equity
ratio |
|
7.72 |
% |
|
|
8.47 |
% |
|
|
9.34 |
% |
|
|
10.63 |
% |
|
|
10.58 |
% |
|
|
7.72 |
% |
|
|
10.58 |
% |
Stockholders' book
value per common share |
$ |
20.60 |
|
|
$ |
21.07 |
|
|
$ |
21.82 |
|
|
$ |
23.18 |
|
|
$ |
21.68 |
|
|
$ |
20.60 |
|
|
$ |
21.68 |
|
Tangible stockholders'
book value per common share |
$ |
19.92 |
|
|
$ |
20.40 |
|
|
$ |
21.15 |
|
|
$ |
22.55 |
|
|
$ |
21.08 |
|
|
$ |
19.92 |
|
|
$ |
21.08 |
|
____________(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
third quarters of 2022 and 2021, and the fourth quarter of 2021,
include expenses primarily in connection with the elimination of
certain support functions. 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. (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 $1.0 million, $0.8
million, $0.5 million and $0.2 million in the three months ended
September 30, 2022, 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, include $1.6 million of ROU
asset impairment associated with the closure of a branch in
Pembroke Pines, Florida in 2022.(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 nine months ended September 30, 2022 and 2021, amounts
were calculated based upon the effective tax rate for the periods
of 21.10%, 21.50% and 22.74%, 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 September 30, 2022, June 30, 2022, March 31, 2022,
December 31, 2021 and September 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 $1.0 million,
$0.9 million, $0.9 million, $0.6 million and $0.6 million at
September 30, 2022, June 30, 2022, March 31, 2022, December 31,
2021 and September 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 |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 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) |
$ |
6,021,294 |
$ |
76,779 |
5.06 |
% |
|
$ |
5,635,147 |
$ |
61,514 |
4.38 |
% |
|
$ |
5,379,461 |
$ |
53,193 |
3.92 |
% |
Debt securities available for sale (3) (4) |
|
1,110,153 |
|
8,379 |
2.99 |
% |
|
|
1,113,994 |
|
7,614 |
2.74 |
% |
|
|
1,221,569 |
|
7,055 |
2.29 |
% |
Debt securities held to maturity (5) |
|
235,916 |
|
1,921 |
3.23 |
% |
|
|
177,483 |
|
981 |
2.22 |
% |
|
|
102,574 |
|
508 |
1.96 |
% |
Debt securities held for trading |
|
65 |
|
1 |
6.10 |
% |
|
|
101 |
|
1 |
3.97 |
% |
|
|
153 |
|
1 |
2.59 |
% |
Equity securities with readily determinable fair value not held for
trading |
|
12,018 |
|
— |
— |
% |
|
|
12,407 |
|
— |
— |
% |
|
|
24,017 |
|
66 |
1.09 |
% |
Federal Reserve Bank and FHLB stock |
|
49,398 |
|
605 |
4.86 |
% |
|
|
49,476 |
|
539 |
4.37 |
% |
|
|
47,682 |
|
514 |
4.28 |
% |
Deposits with banks |
|
258,237 |
|
1,452 |
2.23 |
% |
|
|
224,751 |
|
518 |
0.92 |
% |
|
|
207,504 |
|
76 |
0.15 |
% |
Total interest-earning assets |
|
7,687,081 |
|
89,137 |
4.60 |
% |
|
|
7,213,359 |
|
71,167 |
3.96 |
% |
|
|
6,982,960 |
|
61,413 |
3.49 |
% |
Total
non-interest-earning assets (6) |
|
639,118 |
|
|
|
|
635,871 |
|
|
|
|
553,505 |
|
|
Total assets |
$ |
8,326,199 |
|
|
|
$ |
7,849,230 |
|
|
|
$ |
7,536,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 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 |
$ |
2,077,321 |
|
$ |
4,934 |
0.94 |
% |
|
$ |
1,654,232 |
|
$ |
1,034 |
0.25 |
% |
|
$ |
1,290,944 |
|
$ |
147 |
0.05 |
% |
Money market |
|
1,363,799 |
|
|
3,555 |
1.03 |
% |
|
|
1,262,566 |
|
|
1,351 |
0.43 |
% |
|
|
1,359,774 |
|
|
798 |
0.23 |
% |
Savings |
|
320,861 |
|
|
54 |
0.07 |
% |
|
|
318,967 |
|
|
14 |
0.02 |
% |
|
|
329,456 |
|
|
11 |
0.01 |
% |
Total checking and saving
accounts |
|
3,761,981 |
|
|
8,543 |
0.90 |
% |
|
|
3,235,765 |
|
|
2,399 |
0.30 |
% |
|
|
2,980,174 |
|
|
956 |
0.13 |
% |
Time deposits |
|
1,247,084 |
|
|
4,717 |
1.50 |
% |
|
|
1,256,112 |
|
|
4,503 |
1.44 |
% |
|
|
1,555,001 |
|
|
5,302 |
1.35 |
% |
Total deposits |
|
5,009,065 |
|
|
13,260 |
1.05 |
% |
|
|
4,491,877 |
|
|
6,902 |
0.62 |
% |
|
|
4,535,175 |
|
|
6,258 |
0.55 |
% |
Securities sold under
agreements to repurchase |
|
— |
|
|
— |
— |
% |
|
|
60 |
|
|
— |
— |
% |
|
|
— |
|
|
— |
— |
% |
Advances from the FHLB and
other borrowings (7) |
|
866,639 |
|
|
3,977 |
1.82 |
% |
|
|
867,573 |
|
|
3,341 |
1.54 |
% |
|
|
808,860 |
|
|
1,777 |
0.87 |
% |
Senior notes |
|
59,092 |
|
|
941 |
6.32 |
% |
|
|
59,013 |
|
|
942 |
6.40 |
% |
|
|
58,776 |
|
|
942 |
6.36 |
% |
Subordinated notes |
|
29,220 |
|
|
362 |
4.92 |
% |
|
|
29,178 |
|
|
361 |
4.96 |
% |
|
|
— |
|
|
— |
— |
% |
Junior subordinated
debentures |
|
64,178 |
|
|
700 |
4.33 |
% |
|
|
64,178 |
|
|
676 |
4.22 |
% |
|
|
64,178 |
|
|
615 |
3.80 |
% |
Total interest-bearing
liabilities |
|
6,028,194 |
|
|
19,240 |
1.27 |
% |
|
|
5,511,879 |
|
|
12,222 |
0.89 |
% |
|
|
5,466,989 |
|
|
9,592 |
0.70 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand
deposits |
|
1,316,988 |
|
|
|
|
|
1,309,520 |
|
|
|
|
|
1,110,353 |
|
|
|
Accounts payable, accrued
liabilities and other liabilities |
|
245,425 |
|
|
|
|
|
283,721 |
|
|
|
|
|
152,528 |
|
|
|
Total non-interest-bearing
liabilities |
|
1,562,413 |
|
|
|
|
|
1,593,241 |
|
|
|
|
|
1,262,881 |
|
|
|
Total liabilities |
|
7,590,607 |
|
|
|
|
|
7,105,120 |
|
|
|
|
|
6,729,870 |
|
|
|
Stockholders’ equity |
|
735,592 |
|
|
|
|
|
744,110 |
|
|
|
|
|
806,595 |
|
|
|
Total liabilities and
stockholders' equity |
$ |
8,326,199 |
|
|
|
|
$ |
7,849,230 |
|
|
|
|
$ |
7,536,465 |
|
|
|
Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,658,887 |
|
|
|
|
$ |
1,701,480 |
|
|
|
|
$ |
1,515,971 |
|
|
|
Net interest
income |
|
$ |
69,897 |
|
|
|
$ |
58,945 |
|
|
|
$ |
51,821 |
|
Net interest rate spread |
|
|
3.33 |
% |
|
|
|
3.07 |
% |
|
|
|
2.79 |
% |
Net interest margin (8) |
|
|
3.61 |
% |
|
|
|
3.28 |
% |
|
|
|
2.94 |
% |
Cost of total deposits
(9) |
|
|
0.83 |
% |
|
|
|
0.48 |
% |
|
|
|
0.44 |
% |
Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
127.52 |
% |
|
|
|
|
130.87 |
% |
|
|
|
|
127.73 |
% |
|
|
Average non-performing loans/
Average total loans |
|
0.42 |
% |
|
|
|
|
0.56 |
% |
|
|
|
|
1.94 |
% |
|
|
|
Nine Months Ended |
|
September 30, 2022 |
September 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) |
$ |
5,718,264 |
|
$ |
194,631 |
4.55 |
% |
$ |
5,527,228 |
|
$ |
159,576 |
3.86 |
% |
Debt securities available for sale (3)(4) |
|
1,130,231 |
|
|
23,371 |
2.76 |
% |
|
1,202,191 |
|
|
19,943 |
2.22 |
% |
Debt securities held to maturity (5) |
|
176,462 |
|
|
3,605 |
2.73 |
% |
|
89,298 |
|
|
1,291 |
1.93 |
% |
Debt securities held for trading |
|
67 |
|
|
3 |
5.99 |
% |
|
172 |
|
|
4 |
3.11 |
% |
Equity securities with readily determinable fair value not held for
trading |
|
8,615 |
|
|
— |
— |
% |
|
24,084 |
|
|
225 |
1.25 |
% |
Federal Reserve Bank and FHLB stock |
|
50,118 |
|
|
1,690 |
4.51 |
% |
|
54,291 |
|
|
1,687 |
4.15 |
% |
Deposits with banks |
|
247,401 |
|
|
2,102 |
1.14 |
% |
|
217,611 |
|
|
189 |
0.12 |
% |
Total interest-earning assets |
|
7,331,158 |
|
|
225,402 |
4.11 |
% |
|
7,114,875 |
|
|
182,915 |
3.44 |
% |
Total non-interest-earning
assets (6) |
|
592,087 |
|
|
|
|
538,137 |
|
|
|
Total assets |
$ |
7,923,245 |
|
|
|
$ |
7,653,012 |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
Checking and saving accounts
- |
|
|
|
|
|
|
Interest bearing DDA |
$ |
1,769,001 |
|
$ |
6,258 |
0.47 |
% |
$ |
1,298,674 |
|
$ |
383 |
0.04 |
% |
Money market |
|
1,293,748 |
|
|
5,639 |
0.58 |
% |
|
1,302,431 |
|
|
2,695 |
0.28 |
% |
Savings |
|
321,634 |
|
|
80 |
0.03 |
% |
|
323,785 |
|
|
39 |
0.02 |
% |
Total checking and saving
accounts |
|
3,384,383 |
|
|
11,977 |
0.47 |
% |
|
2,924,890 |
|
|
3,117 |
0.14 |
% |
Time deposits |
|
1,265,982 |
|
|
13,501 |
1.43 |
% |
|
1,765,555 |
|
|
18,989 |
1.44 |
% |
Total deposits |
|
4,650,365 |
|
|
25,478 |
0.73 |
% |
|
4,690,445 |
|
|
22,106 |
0.63 |
% |
Securities sold under
agreements to repurchase |
|
20 |
|
|
— |
— |
% |
|
147 |
|
|
1 |
0.91 |
% |
Advances from the FHLB and
other borrowings (7) |
|
883,566 |
|
|
9,799 |
1.48 |
% |
|
926,087 |
|
|
6,790 |
0.98 |
% |
Senior notes |
|
59,014 |
|
|
2,825 |
6.40 |
% |
|
58,697 |
|
|
2,826 |
6.44 |
% |
Subordinated notes |
|
22,030 |
|
|
811 |
4.92 |
% |
|
— |
|
|
— |
— |
% |
Junior subordinated
debentures |
|
64,178 |
|
|
2,002 |
4.17 |
% |
|
64,178 |
|
|
1,831 |
3.81 |
% |
Total interest-bearing
liabilities |
|
5,679,173 |
|
|
40,915 |
0.96 |
% |
|
5,739,554 |
|
|
33,554 |
0.78 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
Non-interest bearing demand
deposits |
|
1,275,689 |
|
|
|
|
991,635 |
|
|
|
Accounts payable, accrued
liabilities and other liabilities |
|
209,123 |
|
|
|
|
129,407 |
|
|
|
Total non-interest-bearing
liabilities |
|
1,484,812 |
|
|
|
|
1,121,042 |
|
|
|
Total liabilities |
|
7,163,985 |
|
|
|
|
6,860,596 |
|
|
|
Stockholders’ equity |
|
759,260 |
|
|
|
|
792,416 |
|
|
|
Total liabilities and
stockholders' equity |
$ |
7,923,245 |
|
|
|
$ |
7,653,012 |
|
|
|
Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,651,985 |
|
|
|
$ |
1,375,321 |
|
|
|
Net interest
income |
|
$ |
184,487 |
|
|
$ |
149,361 |
|
Net interest rate spread |
|
|
3.15 |
% |
|
|
2.66 |
% |
Net interest margin (8) |
|
|
3.36 |
% |
|
|
2.81 |
% |
Cost of total deposits
(9) |
|
|
0.57 |
% |
|
|
0.52 |
% |
Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
129.09 |
% |
|
|
|
123.96 |
% |
|
|
Average non-performing loans/
Average total loans |
|
0.56 |
% |
|
|
|
1.77 |
% |
|
|
___________(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 $51.9 million,
$55.9 million and $100.7 million in the three months ended
September 30, 2022, June 30, 2022, and September 30, 2021,
respectively, and $58.4 million and $107.5 million in the nine
months ended September 30, 2022 and 2021, respectively. The average
balance of total loans held for sale was $142.5 million, $112.2
million and $81.2 million in the three months ended
September 30, 2022, June 30, 2022 and September 30, 2021,
respectively, and $130.8 million and $27.5 million in the nine
months ended September 30, 2022 and 2021, respectively.(2) Includes
average non-performing loans of $25.3 million, $32.7 million and
$106.5 million for the three months ended September 30, 2022,
June 30, 2022 and September 30, 2021, respectively, and $32.4
million and $99.8 million for the nine months ended September 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 losses of $72.4 million and $58.0 million in the three months
ended September 30, 2022, and June 30, 2022, respectively, and
average unrealized net gains of $28.9 million in the three months
ended September 30, 2021. The average balance also includes average
net unrealized losses of $42.9 million in the nine months ended
September 30, 2022, and average unrealized net gains of $28.7
million in the nine months ended September 30, 2021. (4) Includes
nontaxable securities with average balances of $17.1 million, $14.8
million and $19.5 million for the three months ended
September 30, 2022, June 30, 2022 and September 30, 2021,
respectively, and $18.6 million and $46.8 million in the nine
months ended September 30, 2022 and 2021, respectively. The
tax equivalent yield for these nontaxable securities was 2.69%,
2.97% and 1.51% for the three months ended September 30, 2022,
June 30, 2022 and September 30 2021, respectively, and 3.67% and
2.09% for the nine months ended September 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
$41.9 million, $42.7 million and $65.1 million for the three months
ended September 30, 2022, June 30, 2022 and September 30,
2021, respectively, and $42.9 million and $58.0 million in the nine
months ended September 30, 2022 and 2021, respectively. The
tax equivalent yield for these nontaxable securities was 3.48%,
3.31% and 2.37% for the three months ended September 30, 2022,
June 30, 2022 and September30, 2021, respectively, and 3.31% and
2.32% for the nine months ended September 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) Excludes the allowance for loan losses.(7) The terms of
the FHLB advance agreements require the Bank to maintain certain
investment securities or loans as collateral for these advances.(8)
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.(9) 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 |
|
Nine Months Ended September 30, |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|
2022 |
|
2021 |
(in thousands, except
percentages) |
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
|
|
|
|
|
|
|
|
|
Deposits and service fees |
$ |
4,629 |
|
|
29.0 |
% |
|
$ |
4,577 |
|
|
35.4 |
% |
|
$ |
4,303 |
|
|
32.0 |
% |
|
$ |
13,826 |
|
|
32.2 |
% |
|
$ |
12,693 |
|
|
29.3 |
% |
Brokerage, advisory and
fiduciary activities |
|
4,619 |
|
|
29.0 |
% |
|
|
4,439 |
|
|
34.3 |
% |
|
|
4,595 |
|
|
34.2 |
% |
|
|
13,654 |
|
|
31.8 |
% |
|
|
13,629 |
|
|
31.5 |
% |
Change in cash surrender value
of bank owned life insurance (“BOLI”)(1) |
|
1,352 |
|
|
8.5 |
% |
|
|
1,334 |
|
|
10.3 |
% |
|
|
1,369 |
|
|
10.2 |
% |
|
|
4,028 |
|
|
9.4 |
% |
|
|
4,093 |
|
|
9.5 |
% |
Cards and trade finance
servicing fees |
|
622 |
|
|
3.9 |
% |
|
|
508 |
|
|
3.9 |
% |
|
|
541 |
|
|
4.0 |
% |
|
|
1,720 |
|
|
4.0 |
% |
|
|
1,268 |
|
|
2.9 |
% |
Gain (loss) on early
extinguishment of FHLB advances, net |
|
— |
|
|
— |
% |
|
|
2 |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
(712 |
) |
|
(1.7 |
)% |
|
|
(2,488 |
) |
|
(5.7 |
)% |
Securities (losses) gains, net
(2) |
|
1,508 |
|
|
9.5 |
% |
|
|
(2,602 |
) |
|
(20.1 |
)% |
|
|
(54 |
) |
|
(0.4 |
)% |
|
|
(325 |
) |
|
(0.8 |
)% |
|
|
3,857 |
|
|
8.9 |
% |
Derivative gains (losses), net
(3) |
|
(95 |
) |
|
(0.6 |
)% |
|
|
855 |
|
|
6.6 |
% |
|
|
— |
|
|
— |
% |
|
|
(585 |
) |
|
(1.4 |
)% |
|
|
— |
|
|
— |
% |
Loan-level derivative income
(4) |
|
2,786 |
|
|
17.5 |
% |
|
|
1,009 |
|
|
7.8 |
% |
|
|
454 |
|
|
3.4 |
% |
|
|
6,947 |
|
|
16.2 |
% |
|
|
1,979 |
|
|
4.5 |
% |
Other noninterest income
(5)(6) |
|
535 |
|
|
3.2 |
% |
|
|
2,809 |
|
|
21.8 |
% |
|
|
2,226 |
|
|
16.6 |
% |
|
|
4,359 |
|
|
10.3 |
% |
|
|
8,300 |
|
|
19.1 |
% |
Total noninterest income |
$ |
15,956 |
|
|
100.0 |
% |
|
$ |
12,931 |
|
|
100.0 |
% |
|
$ |
13,434 |
|
|
100.0 |
% |
|
$ |
42,912 |
|
|
100.0 |
% |
|
$ |
43,331 |
|
|
100.0 |
% |
__________________(1) Changes in cash surrender value of BOLI
are not taxable.(2) Includes: (i) net gain on sale of debt
securities of $22 thousand and $36 thousand in the three months
ended September 30, 2022 and 2021, respectively, and (ii)
unrealized gains of $1.5 million in the three months ended
September 30, 2022, and unrealized losses of $2.6 million and
$0.1 million in the three months ended June 30, 2022 and
September 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 the three months ended September 30, 2022 and
June 30, 2022, the Company incurred expenses related to derivative
transactions with customers of $1.8 million and $2.0 million,
respectively, which are included as part of noninterest expenses
under professional and other services fees. We had no expenses
associated with derivative transactions with customers in the three
months ended September 30, 2021.(5) Includes mortgage banking
revenue related to Amerant Mortgage of $0.1 million, $2.4 million
and $0.7 million in the three months ended September 30, 2022, June
30, 2022 and September 30, 2021, 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 the three months ended
September 30, 2022, June 30, 2022 and September 30, 2021,
rental income from subleases was $0.7 million, $0.7 million and
$1.0 million, respectively.
Exhibit 5 - Noninterest
Expense
This table shows the amounts of each of the categories of
noninterest expense for the periods presented.
|
Three Months Ended |
|
Nine Months Ended September 30, |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|
2022 |
|
2021 |
(in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
|
|
|
|
|
|
|
Salaries and employee benefits
(1) |
$ |
30,109 |
53.7 |
% |
|
$ |
30,212 |
|
48.5 |
% |
|
$ |
29,053 |
60.0 |
% |
|
$ |
90,724 |
50.6 |
% |
|
$ |
86,276 |
60.3 |
% |
Occupancy and equipment (2)
(3) |
|
6,559 |
11.7 |
% |
|
|
7,760 |
|
12.5 |
% |
|
|
4,769 |
9.9 |
% |
|
|
21,044 |
11.8 |
% |
|
|
14,599 |
10.2 |
% |
Professional and other
services fees (4) (5) |
|
6,855 |
12.2 |
% |
|
|
6,746 |
|
10.8 |
% |
|
|
4,184 |
8.6 |
% |
|
|
20,783 |
11.6 |
% |
|
|
12,661 |
8.8 |
% |
Telecommunications and data
processing |
|
3,861 |
6.9 |
% |
|
|
3,214 |
|
5.2 |
% |
|
|
3,810 |
7.9 |
% |
|
|
11,113 |
6.2 |
% |
|
|
11,052 |
7.7 |
% |
Depreciation and amortization
(6) |
|
1,481 |
2.6 |
% |
|
|
1,294 |
|
2.1 |
% |
|
|
2,091 |
4.3 |
% |
|
|
3,927 |
2.2 |
% |
|
|
5,749 |
4.0 |
% |
FDIC assessments and
insurance |
|
1,746 |
3.1 |
% |
|
|
1,526 |
|
2.5 |
% |
|
|
1,626 |
3.4 |
% |
|
|
4,668 |
2.6 |
% |
|
|
5,083 |
3.6 |
% |
Loans held for sale valuation
(reversal) expense (7) |
|
— |
— |
% |
|
|
(300 |
) |
(0.5 |
)% |
|
|
— |
— |
% |
|
|
159 |
0.1 |
% |
|
|
— |
— |
% |
Advertising expenses |
|
2,066 |
3.7 |
% |
|
|
3,253 |
|
5.2 |
% |
|
|
776 |
1.6 |
% |
|
|
8,291 |
4.6 |
% |
|
|
1,919 |
1.3 |
% |
Other real estate owned
valuation expense (8) |
|
234 |
0.4 |
% |
|
|
3,174 |
|
5.1 |
% |
|
|
— |
— |
% |
|
|
3,408 |
1.9 |
% |
|
|
— |
— |
% |
Contract termination costs
(9) |
|
289 |
0.5 |
% |
|
|
2,802 |
|
4.5 |
% |
|
|
— |
— |
% |
|
|
7,103 |
4.0 |
% |
|
|
— |
— |
% |
Other operating expenses
(10) |
|
2,913 |
5.2 |
% |
|
|
2,560 |
|
4.1 |
% |
|
|
2,095 |
4.3 |
% |
|
|
7,952 |
4.4 |
% |
|
|
5,815 |
4.1 |
% |
Total noninterest expense (11) |
$ |
56,113 |
100.0 |
% |
|
$ |
62,241 |
|
100.0 |
% |
|
$ |
48,404 |
100.0 |
% |
|
$ |
179,172 |
100.0 |
% |
|
$ |
143,154 |
100.0 |
% |
___________(1) Includes severance expense of $0.4 million, $0.7
million and $0.3 million in the three months ended September 30,
2022, June 30, 2022 and September 30, 2021, respectively, primarily
in connection with the elimination of certain support functions in
the third quarters of 2022 and 2021, and with the restructuring of
business lines and the elimination of certain support functions in
the second quarter of 2022.(2) In the three months ended June 30,
2022, includes ROU asset impairment changes of $1.6 million in
connection with the closure of a branch in Pembroke Pines, Florida
in 2022.(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 the three
months ended September 30, 2022, June 30, 2022 and September
30, 2021, rental income from subleases was $0.7 million, $0.7
million and $1.0 million, respectively.(4) In the three months
ended September 30, 2022, includes additional expenses of $1.0
million related to the engagement of FIS. 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 $1.8 million and $2.0 million in the three
months ended September 30, 2022 and June 30, 2022, respectively, in
connection with our loan-level derivative income generation
activities. We had no expenses in connection with our loan-level
derivative income generation activities in the three months ended
September 30, 2021. (6) In the three months ended September 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 September 30, 2022 and June 30,
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 $2.7 million, $3.7 million and $2.1 million in
the three months ended September 30, 2022, June 30, 2022 and
September 30, 2021, respectively, related to Amerant Mortgage,
primarily consisting of salaries and employee benefits, mortgage
lending costs and professional and other services fees.
Exhibit 6 - Consolidated Balance
Sheets
(in thousands, except share
data) |
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
Assets |
|
|
|
|
|
|
(audited) |
|
|
Cash and due from banks |
$ |
37,631 |
|
|
$ |
29,217 |
|
|
$ |
35,242 |
|
|
$ |
33,668 |
|
|
$ |
27,501 |
|
Interest earning deposits with
banks |
|
218,354 |
|
|
|
303,030 |
|
|
|
234,709 |
|
|
|
240,540 |
|
|
|
138,732 |
|
Restricted cash |
|
46,149 |
|
|
|
21,808 |
|
|
|
6,243 |
|
|
|
— |
|
|
|
— |
|
Cash and cash equivalents |
|
302,134 |
|
|
|
354,055 |
|
|
|
276,194 |
|
|
|
274,208 |
|
|
|
166,233 |
|
Securities |
|
|
|
|
|
|
|
|
|
Debt securities available for
sale |
|
1,052,329 |
|
|
|
1,124,801 |
|
|
|
1,145,785 |
|
|
|
1,175,319 |
|
|
|
1,220,391 |
|
Debt securities held to
maturity |
|
234,317 |
|
|
|
238,621 |
|
|
|
112,008 |
|
|
|
118,175 |
|
|
|
130,543 |
|
Trading securities |
|
112 |
|
|
|
103 |
|
|
|
— |
|
|
|
— |
|
|
|
194 |
|
Equity securities with readily
determinable fair value not held for trading |
|
12,232 |
|
|
|
10,767 |
|
|
|
13,370 |
|
|
|
252 |
|
|
|
23,870 |
|
Federal Reserve Bank and
Federal Home Loan Bank stock |
|
53,792 |
|
|
|
48,187 |
|
|
|
53,806 |
|
|
|
47,495 |
|
|
|
47,740 |
|
Securities |
|
1,352,782 |
|
|
|
1,422,479 |
|
|
|
1,324,969 |
|
|
|
1,341,241 |
|
|
|
1,422,738 |
|
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 |
|
57,591 |
|
|
|
54,863 |
|
|
|
17,108 |
|
|
|
14,905 |
|
|
|
5,812 |
|
Loans held for investment,
gross |
|
6,445,768 |
|
|
|
5,726,131 |
|
|
|
5,635,478 |
|
|
|
5,409,440 |
|
|
|
5,254,029 |
|
Less: Allowance for loan
losses |
|
53,711 |
|
|
|
52,027 |
|
|
|
56,051 |
|
|
|
69,899 |
|
|
|
83,442 |
|
Loans held for investment, net |
|
6,392,057 |
|
|
|
5,674,104 |
|
|
|
5,579,427 |
|
|
|
5,339,541 |
|
|
|
5,170,587 |
|
Bank owned life insurance |
|
227,034 |
|
|
|
225,682 |
|
|
|
224,348 |
|
|
|
223,006 |
|
|
|
221,640 |
|
Premises and equipment, net
(2) |
|
41,220 |
|
|
|
39,091 |
|
|
|
37,929 |
|
|
|
37,860 |
|
|
|
108,885 |
|
Deferred tax assets, net |
|
45,791 |
|
|
|
33,265 |
|
|
|
22,119 |
|
|
|
11,301 |
|
|
|
9,861 |
|
Operating lease right-of-use
assets (2) |
|
141,453 |
|
|
|
139,358 |
|
|
|
139,477 |
|
|
|
141,139 |
|
|
|
51,530 |
|
Goodwill |
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
Accrued interest receivable
and other assets (3) |
|
160,411 |
|
|
|
122,449 |
|
|
|
96,168 |
|
|
|
92,497 |
|
|
|
93,430 |
|
Total assets |
$ |
8,739,979 |
|
|
$ |
8,151,242 |
|
|
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Demand |
|
|
|
|
|
|
|
|
|
Noninterest bearing |
$ |
1,318,960 |
|
|
$ |
1,298,954 |
|
|
$ |
1,318,294 |
|
|
$ |
1,183,251 |
|
|
$ |
1,210,154 |
|
Interest bearing |
|
2,147,008 |
|
|
|
2,019,661 |
|
|
|
1,543,708 |
|
|
|
1,507,441 |
|
|
|
1,317,938 |
|
Savings and money market |
|
1,735,713 |
|
|
|
1,629,830 |
|
|
|
1,581,412 |
|
|
|
1,602,339 |
|
|
|
1,655,495 |
|
Time |
|
1,386,441 |
|
|
|
1,254,409 |
|
|
|
1,248,287 |
|
|
|
1,337,840 |
|
|
|
1,442,790 |
|
Total deposits |
|
6,588,122 |
|
|
|
6,202,854 |
|
|
|
5,691,701 |
|
|
|
5,630,871 |
|
|
|
5,626,377 |
|
Advances from the Federal Home
Loan Bank |
|
981,005 |
|
|
|
830,524 |
|
|
|
980,047 |
|
|
|
809,577 |
|
|
|
809,095 |
|
Senior notes |
|
59,131 |
|
|
|
59,052 |
|
|
|
58,973 |
|
|
|
58,894 |
|
|
|
58,815 |
|
Subordinated notes |
|
29,241 |
|
|
|
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) |
|
140,911 |
|
|
|
137,808 |
|
|
|
135,651 |
|
|
|
136,595 |
|
|
|
48,709 |
|
Accounts payable, accrued
liabilities and other liabilities (4) |
|
181,693 |
|
|
|
116,177 |
|
|
|
96,734 |
|
|
|
106,411 |
|
|
|
69,469 |
|
Total liabilities |
|
8,044,281 |
|
|
|
7,439,792 |
|
|
|
7,056,440 |
|
|
|
6,806,526 |
|
|
|
6,676,643 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
Class A common stock |
|
3,376 |
|
|
|
3,375 |
|
|
|
3,434 |
|
|
|
3,589 |
|
|
|
2,903 |
|
Class B common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
847 |
|
Additional paid in
capital |
|
191,970 |
|
|
|
190,337 |
|
|
|
208,109 |
|
|
|
262,510 |
|
|
|
299,273 |
|
Retained earnings |
|
588,495 |
|
|
|
570,588 |
|
|
|
565,963 |
|
|
|
553,167 |
|
|
|
489,854 |
|
Accumulated other
comprehensive (loss) income |
|
(86,208 |
) |
|
|
(50,959 |
) |
|
|
(24,424 |
) |
|
|
15,217 |
|
|
|
21,236 |
|
Total stockholders' equity before noncontrolling interest |
|
697,633 |
|
|
|
713,341 |
|
|
|
753,082 |
|
|
|
834,483 |
|
|
|
814,113 |
|
Noncontrolling interest |
|
(1,935 |
) |
|
|
(1,891 |
) |
|
|
(3,686 |
) |
|
|
(2,610 |
) |
|
|
(1,451 |
) |
Total stockholders' equity |
|
695,698 |
|
|
|
711,450 |
|
|
|
749,396 |
|
|
|
831,873 |
|
|
|
812,662 |
|
Total liabilities and stockholders' equity |
$ |
8,739,979 |
|
|
$ |
8,151,242 |
|
|
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
|
|
|
|
|
|
|
|
|
|
__________(1) As of the third quarter of 2022, loans held for
sale mainly consisted of residential mortgage loans. Prior periods
included NYC CRE loans held for sale which were transferred to the
loans held for investment category in the third quarter of 2022. 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 September 30, 2022, 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.(3) As of September 30, 2022, June 30, 2022,
March 31, 2022, December 31, 2021 and September 30, 2021, include
derivative assets with a total fair value of $78.3 million, $39.8
million, $24.3 million, $21.9 million, and $24.8 million,
respectively.(4) As of September 30, 2022, June 30, 2022, March 31,
2022, December 31, 2021 and September 30, 2021, include derivatives
liabilities with a total fair value of $78.4 million, $39.7
million, $25.3 million, $22.2 million and $25.5 million,
respectively.
Exhibit 7 - LoansLoans
by Type - Held For Investment
The loan portfolio held for investment consists of the following
loan classes:
(in thousands) |
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
Real estate loans |
|
|
|
|
|
|
(audited) |
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
1,600,281 |
|
$ |
1,530,293 |
|
$ |
1,570,006 |
|
$ |
1,540,590 |
|
$ |
1,593,664 |
Multi-family residential |
|
779,456 |
|
|
532,066 |
|
|
540,726 |
|
|
514,679 |
|
|
504,337 |
Land development and construction loans |
|
300,476 |
|
|
288,581 |
|
|
296,609 |
|
|
327,246 |
|
|
318,449 |
|
|
2,680,213 |
|
|
2,350,940 |
|
|
2,407,341 |
|
|
2,382,515 |
|
|
2,416,450 |
Single-family residential |
|
978,674 |
|
|
727,712 |
|
|
707,594 |
|
|
661,339 |
|
|
618,139 |
Owner occupied |
|
992,948 |
|
|
954,538 |
|
|
927,921 |
|
|
962,538 |
|
|
936,590 |
|
|
4,651,835 |
|
|
4,033,190 |
|
|
4,042,856 |
|
|
4,006,392 |
|
|
3,971,179 |
Commercial loans (1) |
|
1,203,776 |
|
|
1,122,248 |
|
|
1,093,205 |
|
|
965,673 |
|
|
910,696 |
Loans to financial
institutions and acceptances |
|
13,271 |
|
|
13,250 |
|
|
13,730 |
|
|
13,710 |
|
|
13,690 |
Consumer loans and overdrafts
(2) |
|
576,886 |
|
|
557,443 |
|
|
485,687 |
|
|
423,665 |
|
|
358,464 |
Total loans |
$ |
6,445,768 |
|
$ |
5,726,131 |
|
$ |
5,635,478 |
|
$ |
5,409,440 |
|
$ |
5,254,029 |
__________________(1) As of September 30, 2022 and June 30,
2022, includes around $31.7 million and $9.9 million, respectively,
in commercial loans and leases originated under a white-label
equipment financing solution launched in the second quarter of
2022.(2) As of September 30, 2022, June 30, 2022, March 31, 2022,
December 31, 2022 and September 30, 2021, includes $496.6 million,
$477.3 million, $395.7 million, $297.0 million and $273.6 million,
respectively, in consumer loans purchased under indirect lending
programs. In addition, as of September 30, 2022, includes $6.3
million in consumer loan originated under a white-label
program.
Loans by Type - Held For Sale
The loan portfolio held for sale consists of the following loan
classes:
(in thousands) |
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
Loans held for sale at
the lower of cost or fair value |
|
|
|
|
|
|
(audited) |
|
|
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 |
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 |
|
5,560 |
|
|
2,366 |
|
|
836 |
|
|
— |
|
|
— |
Single-family residential |
|
52,031 |
|
|
52,497 |
|
|
16,272 |
|
|
14,905 |
|
|
5,812 |
Total loans held for sale at
fair value (2) |
|
57,591 |
|
|
54,863 |
|
|
17,108 |
|
|
14,905 |
|
|
5,812 |
Total loans held for sale
(3) |
$ |
57,591 |
|
$ |
121,253 |
|
$ |
85,699 |
|
$ |
158,100 |
|
$ |
224,895 |
__________________
(1) As of the third quarter of 2022, loans held for sale mainly
consisted of residential mortgage loans and the NYC CRE loans held
for sale were transferred to the loans held for investment
category. 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 September 30, 2022 and
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) |
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
Non-Accrual
Loans(1) |
|
|
|
|
|
|
(audited) |
|
|
Real Estate Loans |
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
— |
|
$ |
1,251 |
|
$ |
12,825 |
|
$ |
7,285 |
|
$ |
28,507 |
Multi-family residential |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,251 |
|
|
12,825 |
|
|
7,285 |
|
|
28,507 |
Single-family residential |
|
1,465 |
|
|
2,755 |
|
|
3,717 |
|
|
5,126 |
|
|
6,344 |
Owner occupied |
|
6,357 |
|
|
9,558 |
|
|
10,770 |
|
|
8,665 |
|
|
11,040 |
|
|
7,822 |
|
|
13,564 |
|
|
27,312 |
|
|
21,076 |
|
|
45,891 |
Commercial loans (2) (3) |
|
9,715 |
|
|
8,987 |
|
|
19,178 |
|
|
28,440 |
|
|
36,500 |
Consumer loans and
overdrafts |
|
947 |
|
|
2,398 |
|
|
468 |
|
|
257 |
|
|
353 |
Total Non-Accrual
Loans |
$ |
18,484 |
|
$ |
24,949 |
|
$ |
46,958 |
|
$ |
49,773 |
|
$ |
82,744 |
|
|
|
|
|
|
|
|
|
|
Past Due Accruing
Loans(4) |
|
|
|
|
|
|
|
|
|
Real Estate Loans |
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
Single-family residential |
|
4 |
|
|
162 |
|
|
— |
|
|
— |
|
|
4 |
Commercial |
|
245 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Consumer loans and
overdrafts |
|
7 |
|
|
42 |
|
|
10 |
|
|
8 |
|
|
1 |
Total Past Due
Accruing Loans |
|
256 |
|
|
204 |
|
|
10 |
|
|
8 |
|
|
5 |
Total Non-Performing
Loans |
|
18,740 |
|
|
25,153 |
|
|
46,968 |
|
|
49,781 |
|
|
82,749 |
Other Real Estate
Owned |
|
6,312 |
|
|
6,545 |
|
|
9,720 |
|
|
9,720 |
|
|
9,800 |
Total Non-Performing
Assets |
$ |
25,052 |
|
$ |
31,698 |
|
$ |
56,688 |
|
$ |
59,501 |
|
$ |
92,549 |
__________________(1) Includes loan modifications that met the
definition of TDRs which may be performing in accordance with their
modified loan terms. As of September 30, 2022, June 30, 2022, March
31, 2022, December 31, 2021 and September 30, 2021, non-performing
TDRs include $9.9 million, $8.3 million, $8.6 million, $9.1 million
and $9.3 million, respectively, in a multiple loan relationship to
a South Florida borrower.(2) As of March 31, 2022, December 31,
2021 and September 30, 2021, includes $9.1 million, $9.1 million
and $13.9 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 September 30, 2022 and 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.
|
September 30, 2022 |
|
June 30, 2022 |
|
September 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 |
$ |
37,364 |
$ |
— |
$ |
— |
$ |
37,364 |
|
$ |
29,799 |
$ |
— |
$ |
1,257 |
$ |
31,056 |
|
$ |
31,269 |
$ |
25,332 |
$ |
3,175 |
$ |
59,776 |
Multi-family residential |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
Land development and construction loans |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
37,364 |
|
— |
|
— |
|
37,364 |
|
|
29,799 |
|
— |
|
1,257 |
|
31,056 |
|
|
31,269 |
|
25,332 |
|
3,175 |
|
59,776 |
Single-family residential |
|
— |
|
1,717 |
|
— |
|
1,717 |
|
|
— |
|
3,011 |
|
— |
|
3,011 |
|
|
— |
|
6,368 |
|
— |
|
6,368 |
Owner occupied |
|
— |
|
6,445 |
|
— |
|
6,445 |
|
|
— |
|
9,649 |
|
— |
|
9,649 |
|
|
7,473 |
|
11,136 |
|
— |
|
18,609 |
|
|
37,364 |
|
8,162 |
|
— |
|
45,526 |
|
|
29,799 |
|
12,660 |
|
1,257 |
|
43,716 |
|
|
38,742 |
|
42,836 |
|
3,175 |
|
84,753 |
Commercial loans (2) |
|
1,800 |
|
10,942 |
|
3 |
|
12,745 |
|
|
7,873 |
|
9,663 |
|
604 |
|
18,140 |
|
|
38,522 |
|
22,471 |
|
15,404 |
|
76,397 |
Consumer loans and
overdrafts |
|
— |
|
947 |
|
— |
|
947 |
|
|
— |
|
2,398 |
|
— |
|
2,398 |
|
|
— |
|
356 |
|
— |
|
356 |
|
$ |
39,164 |
$ |
20,051 |
$ |
3 |
$ |
59,218 |
|
$ |
37,672 |
$ |
24,721 |
$ |
1,861 |
$ |
64,254 |
|
$ |
77,264 |
$ |
65,663 |
$ |
18,579 |
$ |
161,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________(1) There were no loans categorized as “Loss” as of
the dates presented.(2) Loan balances as of September 30, 2021
include $13.9 million in a commercial relationship placed in
nonaccrual status and downgraded during the second quarter of 2020.
As of September 30, 2021, Substandard loans include $7.3 million
and doubtful loans include $6.6 million, related to this commercial
relationship. 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 September 30, 2022 and
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) |
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
4,166,281 |
|
$ |
3,722,433 |
|
$ |
3,180,112 |
|
$ |
3,137,258 |
|
$ |
3,090,563 |
Foreign: |
|
|
|
|
|
|
|
|
|
Venezuela |
|
1,931,330 |
|
|
1,964,796 |
|
|
2,004,305 |
|
|
2,019,480 |
|
|
2,054,149 |
Others |
|
490,511 |
|
|
515,625 |
|
|
507,284 |
|
|
474,133 |
|
|
481,665 |
Total foreign |
|
2,421,841 |
|
|
2,480,421 |
|
|
2,511,589 |
|
|
2,493,613 |
|
|
2,535,814 |
Total deposits |
$ |
6,588,122 |
|
$ |
6,202,854 |
|
$ |
5,691,701 |
|
$ |
5,630,871 |
|
$ |
5,626,377 |
|
|
CONTACTS: |
|
|
Investors |
|
|
Laura Rossi |
|
|
InvestorRelations@amerantbank.com |
|
|
(305) 460-8728 |
|
|
|
|
|
Media |
|
|
Silvia M. Larrieu |
|
|
MediaRelations@amerantbank.com |
|
|
(305) 441-8414 |
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