Amerant Reports Second Quarter 2022 Net Income of $7.7 Million and Core PPNR(1) of $19.4 Million
Highlights include strong asset and deposit growth along with net interest margin expansion; also a significant reduction in non-performing loans
CORAL GABLES, Fla., July 20, 2022 (GLOBE NEWSWIRE) -- Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of
Core Pre-Provision Net Revenue (“Core PPNR”)1 grew to
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 to3.18% in 1Q22. - Total assets increased to
$8.2 billion compared to$7.8 billion as of 1Q22. - Total gross loans increased
$126.2 million , or2.2% , to$5.85 billion compared to$5.72 billion in 1Q22, while average yield on loans increased to4.38% in 2Q22 compared to4.16% 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 , or11.4% , 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 to0.38% in 1Q22, while the loan to deposit ratio improved to94.27% compared to100.52% 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 , or12.3% , 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, down51.9% from$16.0 million in 1Q22, and down51.9% 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 , or5.9% , from$55.6 million in 1Q22, and up$8.9 million , or18.0% , from$50.0 million in 2Q21. Net interest margin (“NIM”) was3.28% in 2Q22, up 10 basis points from3.18% in 1Q22, and up 47 basis points from2.81% 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 was0.91% as of 2Q22, compared with0.99% as of 1Q22, and1.86% as of 2Q21. The ratio of net charge-offs to average total loans held for investment was0.29% in 2Q22, unchanged compared to 1Q22, and up from0.12% 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, down7.8% from$14.0 million in 1Q22, and down17.8% 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 , up2.3% from$60.8 million in 1Q22 and up21.7% 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 to87.3% in 1Q22, and77.8% in 2Q21. Core efficiency ratio1 was73.7% in 2Q22, compared to76.4% in 1Q22, and74.5% in 2Q21. - Total gross loans, which include loans held for sale, were
$5.85 billion at the close of 2Q22, up$126.2 million , or2.2% , compared to the close of 1Q22. Total deposits were$6.20 billion at the close of 2Q22, up by$511.2 million , or8.98% , compared to the close of 1Q22, and up by$527.9 million , or9.3% , 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
Net charge-offs during 2Q22 totaled
Non-performing loans to total loans decreased significantly to
Non-performing assets totaled
Loans and Deposits
Total loans, including loans held for sale, as of 2Q22 were
Total deposits as of 2Q22 were
Customer time deposits decreased
Core deposits, which consist of total deposits excluding all time deposits, as of 2Q22 were
Net Interest Income and Net Interest Margin
Second quarter 2022 NII was
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
Noninterest income
In 2Q22, noninterest income was
Noninterest income decreased
In 2Q22, the Company increased its ownership interest in Amerant Mortgage (“AMTM”) to
The Company’s assets under management and custody (“AUM”) totaled
Noninterest expense
Second quarter of 2022 noninterest expense was
Second quarter of 2022 noninterest expense, was
In 2Q22, AMTM had noninterest expenses totaling
The efficiency ratio was
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
Book value per common share decreased to
Amerant’s liquidity position includes cash and cash equivalents of
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
(2) Core deposits consist of total deposits excluding all time deposits.
(3) On March 9, 2022, the Company completed a
(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
(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
(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
(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
(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
(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
(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
(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
(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
(6) In the three months ended June 30, 2022 and 2021, includes
(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
(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
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) | Average Balances | 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) | Average Balances | 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) | Average Balances | 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
(2) Includes average non-performing loans of
(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
(4) Includes nontaxable securities with average balances of
(5) Includes nontaxable securities with average balances of
(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
(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
(5) Includes mortgage banking revenue related to Amerant Mortgage of
(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
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
(2) In the three months ended June 30, 2022 and 2021, includes ROU asset impairment changes of
(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
(4) In the three months ended March 31, 2022, includes additional expenses of
(5) Other services fees include expenses of
(6) In the three months ended June 30, 2021, includes
(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
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
(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 - Loans
Loans 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
(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
(2) As of March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, includes
(3) In the first quarter of 2022, the Company collected a partial payment of around
(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 development and 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
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:
Investors
Laura Rossi
InvestorRelations@amerantbank.com
(305) 460-8728
Media
Silvia M. Larrieu
MediaRelations@amerantbank.com
(305) 441-8414
