Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”)
today reported net income attributable to the Company of $65.5
million in the fourth quarter of 2021, or $1.77 per diluted share,
an increase compared to net income attributable to the Company of
$17.0 million, or $0.45 per diluted share, in the third quarter of
2021 and net income attributable to the Company of $8.5 million, or
$0.20 per diluted share, in the fourth quarter of 2020. Net income
attributable to the Company was $112.9 million for the full-year
2021, compared to a net loss attributable to the Company of $1.7
million for the full-year 2020. Pre-provision net revenue (“PPNR”)1
was $79.1 million in the fourth quarter of 2021, an increase from
$17.5 million in the third quarter of 2021, and an increase from
$8.5 million in the fourth quarter of 2020. PPNR1 was $130.1
million for the full-year 2021, an increase from $84.3 million for
the full-year 2020. Core PPNR1 was $69.9 million for the full-year
2021, compared to $71.0 million for the full-year 2020.
Annualized return on assets (“ROA”) and return
on equity (“ROE”) were 3.45% and 32.04%, respectively, in the
fourth quarter of 2021, compared to 0.90% and 8.38%, respectively,
in the third quarter of 2021, and 0.42% and 4.09%, respectively, in
the fourth quarter of 2020. ROA and ROE were 1.50% and 14.19%,
respectively, for the full-year 2021, compared to negative 0.02%
and 0.21%, respectively, for the full-year 2020.
“We believe the record fourth quarter results
show the steps we have taken throughout the year to position the
company for success are coming to fruition,” stated Jerry Plush,
Vice Chairman, President and CEO. He added, “While we are excited
about the progress we made throughout 2021 toward becoming a higher
performing bank, it is essential that we remain focused on the
continued execution of our strategy to achieve even stronger
performance in 2022.”
Other significant highlights in the
quarter include:
- Entered into a new outsourcing agreement with FIS to assume
full responsibility over a significant number of the Bank’s support
functions and staff; expected estimated annual savings of
approximately $12 million
- Effected a clean-up merger (the “Merger”), which eliminated
class B shares and reduced the number of shares outstanding
- $27.9 million and 893,394 Class A shares repurchased as of
December 31, 2021 in execution of $50-million share buyback program
approved on September 10, 2021
- Declared the first cash dividend as a public company of $0.06
per share paid on January 14, 2022
- Executed on sale and leaseback of the Company’s headquarters
building in Coral Gables; reducing fixed assets by $69.9 million
and recognizing a gain on sale of $62.4 million
Summary Results
Results of the fourth quarter and full-year
ended December 31, 2021 were as follows:
- Net income attributable to Amerant
was $65.5 million in the fourth quarter of 2021, up 284.4% from
$17.0 million in the third quarter of 2021, and up 672.7% from $8.5
million in the fourth quarter of 2020. Net income was $112.9
million for the full-year 2021, compared to a net loss of $1.7
million for the full-year 2020. Core net income1 was $19.3 million
in the fourth quarter of 2021 compared to $17.7 million in the
third quarter of 2021, and compared to core net income of $20.9
million in the fourth quarter of 2020. Core net income1 was $66.8
million for the full-year 2021, compared to a core net loss1 of
$7.0 million for the full-year 2020.
- Net Interest Income (“NII”) was
$55.8 million, up 7.6% from $51.8 million in the third quarter of
2021, and up 14.7% from $48.7 million in the fourth quarter of
2020. NII was $205.1 million for the full-year 2021, up $15.6
million, or 8.2%, from $189.6 million for the full-year 2020. Net
interest margin (“NIM”) was 3.17% in the fourth quarter of 2021, up
23 basis points from 2.94% in the third quarter of 2021, and up 56
basis points from 2.61% in the fourth quarter of 2020. NIM was
2.90% for the full-year 2021, up 38 basis points from 2.52% for the
full-year 2020.
- Amerant released $6.5 million from
the allowance for loan losses (“ALL”) during the fourth quarter of
2021, compared to a release of $5.0 million in the third quarter of
2021. No provision for loan losses was recorded in the fourth
quarter of 2020. There was a release of $16.5 million from the ALL
in the full-year 2021, compared to a provision for loan losses of
$88.6 million in the full-year 2020. The ratio of allowance for
loan losses to total loans held for investment was 1.29% as of
December 31, 2021, down from 1.59% as of September 30, 2021,
and down from 1.90% as of December 31, 2020. The ratio of net
charge-offs to average total loans held for investment in the
fourth quarter of 2021 was 0.52% compared to 1.16% in the third
quarter of 2021, and 0.40% in the fourth quarter of 2020. The ratio
of net charge-offs to average total loans held for investment in
the full-year 2021 was 0.44%, compared to 0.52% in the full-year
2020.
- Noninterest income was $77.3
million in the fourth quarter of 2021, up 475.3% from $13.4 million
in the third quarter of 2021, and up 571.2% from $11.5 million in
the fourth quarter of 2020, as the fourth quarter of 2021 included
a $62.4 million gain on the sale of the Company’s headquarters
building. Noninterest income was $120.6 million in the full-year
2021, up $47.2 million, or 64.2%, compared to $73.5 million in the
full-year 2020. Noninterest income for the full year 2020 includes
a $26.5 million gain on sale of securities.
- Noninterest expense was $55.1
million, up 13.8% from $48.4 million in the third quarter of 2021,
and up 6.7% from $51.6 million in the fourth quarter of 2020.
Noninterest expense was $198.2 million in the full-year 2021, up
$19.5 million, or 10.9%, compared to $178.7 million in the
full-year 2020.
- The efficiency ratio was 41.4% in
the fourth quarter of 2021, compared to 74.2% in the third quarter
of 2021, and 85.8% in the fourth quarter of 2020. For the full-year
2021 the efficiency ratio was 60.9%, compared to 68.0% for the
full-year 2020. Core efficiency ratio1 was 75.0% in the fourth
quarter of 2021, compared to 73.0% in the third quarter of 2021,
and 71.0% in the fourth quarter of 2020. For the full-year 2021
core efficiency ratio1 was 74.0%, compared to 70.1% for the
full-year 2020.
- Total gross loans, which include
loans held for sale, were $5.6 billion at the close of the fourth
quarter of 2021, up $88.6 million, or 1.6%, compared to the close
of the third quarter of 2021, and down $274.8 million, or 4.7%,
compared to the close of the fourth quarter of 2020. Total deposits
were $5.6 billion at the close of the fourth quarter of 2021, up
slightly by $4.5 million, or 0.1%, compared to the close of the
third quarter of 2021, and down $100.8 million, or 1.8%, compared
to the close of the fourth quarter 2020.
- Stockholders’ book value per common
share attributable to the Company increased to $23.18 at
December 31, 2021, compared to $21.68 at September 30, 2021,
and $20.70 at December 31, 2020. Tangible book value (“TBV”)1 per
common share increased to $22.55 as of December 31, 2021,
compared to $21.08 at September 30, 2021, and $20.13 at December
31, 2020.
Credit Quality
The ALL was $69.9 million at the close of the
fourth quarter of 2021, compared to $83.4 million at the close of
the third quarter of 2021, and $110.9 million at the close of the
fourth quarter of 2020. The Company released $6.5 million from the
ALL in the fourth quarter of 2021, compared to a release of $5.0
million in the third quarter of 2021. No provision for loan losses
was recorded in the fourth quarter of 2020. The ALL release during
the fourth quarter of 2021 was primarily attributed to improved
macro-economic conditions and upgrades, payoffs and pay-downs of
non-performing loans and special mention loans, offset by
additional reserves requirements for charge-offs and loan growth.
The ALL associated with the COVID-19 pandemic decreased slightly to
approximately $14.1 million in the fourth quarter of 2021.
Net charge-offs during the fourth quarter of
2021 totaled $7.0 million, compared to $15.7 million in the
third quarter of 2021 and $5.9 million in the fourth quarter of
2020. Charge-offs during the period were primarily due to $3.9
million in commercial loans, $1.8 million in CRE loans and $1.4
million in consumer loans, offset by $0.5 million in recoveries.
Additionally, in connection with the Coffee Trader relationship, we
collected $4.8 million, which contributed to a release of $2.3
million in specific reserves. This relationship had an outstanding
balance of $9.1 million as of the end of the fourth quarter of
2021.
Classified and special mention loans decreased
39.0% and 4.1%, respectively, compared to the third quarter of
2021, and 42.0% and 37.6%, respectively, compared to the fourth
quarter of 2020. The decrease in classified loans was mainly due to
$25.2 million in payoffs and pay-downs, and $7.5 million due to
charge-offs. The decrease in special mention loans was mainly due
to $10.0 million in payoffs and pay-downs and $2 million in
upgrades, offset by $7.9 million in CRE and commercial loan
downgrades.
Non-performing assets totaled $59.5 million at
the end of the fourth quarter of 2021, a decrease of $33.0 million
or 35.7%, compared to the third quarter of 2021, and $28.6 million,
or 32.5%, compared to the fourth quarter of 2020, due to the
decrease in classified loans as mentioned above. The ratio of
non-performing assets to total assets at the end of the fourth
quarter of 2021 was 78 basis points, down 46 basis points from 124
basis points in the third quarter of 2021 and 35 basis points from
113 basis points in the fourth quarter of 2020. In the fourth
quarter of 2021, the ratio of ALL to non-performing loans increased
to 140.41%, from 100.84% at September 30, 2021 and 126.46% at the
close of the fourth quarter of 2020.
Loans and Deposits
Total loans, including loans held for sale, as
of December 31, 2021 were $5.6 billion, up $88.6 million, or
1.6%, compared to September 30, 2021, and down $274.8 million, or
4.7% compared to December 31, 2020. Loans held for sale totaled
$158.1 million and $224.9 million as December 31, 2021 and
September 30, 2021, respectively. There were no loans held for sale
at December 31, 2020. Loans held for sale include $14.9 million in
residential mortgage loans in connection with Amerant Mortgage,
Inc. (“AMTM”) and $143.2 million New York loans. During the fourth
quarter of 2021, the Company sold $49.4 million in loans held for
sale related to the NY portfolio, at par. The increase in total
loans was primarily due to increased loan production compared to
previous quarters, partially offset by approximately $337 million
in prepayments received primarily in CRE loans. During the fourth
quarter of 2021, the Company continued to purchase higher yielding
indirect consumer loans. Consumer loans as of December 31,
2021 were $423.7 million, an increase of $65.2 million, or 18.2%,
quarter over quarter. The Company purchased approximately $85.7
million of higher-yielding indirect consumer loans during the
fourth quarter of 2021.
Core deposits as of December 31, 2021 were $4.3
billion, an increase of $109.4 million or 2.6%, compared to
September 30, 2021, and $603.0 million, or 16.3% compared to
December 31, 2020. This change includes interest bearing demand
deposits of $1.51 billion as of December 31, 2021, compared to
$1.32 billion as of September 30, 2021, noninterest bearing demand
deposits of $1.18 billion as of December 31, 2021 compared to $1.21
billion as of September 30, 2021, and savings and money market
deposits of $1.60 billion as of December 31, 2021 compared to $1.66
billion as of September 30, 2021. Total deposits as of
December 31, 2021 were $5.6 billion, slightly up $4.5 million,
or 0.08%, compared to September 30, 2021. Domestic deposits totaled
$3.1 billion, up $46.7 million, or 1.5%, compared to September 30,
2021, while foreign deposits totaled $2.5 billion, down $42.2
million, or 1.7%, compared to September 30, 2021.
The quarter-over-quarter increase in total
deposits was primarily attributable to an increase in customer
transaction account balances of $109.1 million, or 2.7%, compared
to September 30, 2021, with interest bearing demand contributing
$187.7 million to such growth, and savings and money market and
noninterest bearing deposits partially offsetting the increase in
transaction account balances by $26.9 million and $51.7 million,
respectively. Offsetting the increase in total deposits was a
reduction of $105.0 million, or 7.3%, in time deposits. Customer
CDs compared to the prior quarter decreased $59.1 million, or 5.3%,
as the Company continued to lower CD rates and focus on increasing
core deposits and emphasizing multi-product relationships versus
single product higher-cost CDs. Brokered time deposits decreased
$45.8 million, or 13.7%, compared to September 30, 2021, and
brokered interest bearing and money market deposits increased $0.4
million, or 0.4% during the fourth quarter of 2021. Amerant
continues to de-emphasize this funding source.
Net Interest Income and Net Interest
Margin
Fourth quarter 2021 NII was $55.8 million, up
$4.0 million, or 7.6%, from $51.8 million in the third quarter of
2021 and up $7.1 million, or 14.7%, from $48.7 million in the
fourth quarter of 2020. The quarter-over-quarter increase was
primarily driven by higher average yields, including prepayment
fees, and balances on loans, as well as lower average balances on
customer CDs and brokered time deposits. There were no significant
offsets to the increase in NII during the fourth quarter.
The year-over-year increase in NII was primarily
driven by lower average balances on CDs and brokered deposits and
lower deposit costs as well as higher average loan and investment
yields. Lower cost and average balances on FHLB advances and other
borrowings also contributed to the increase in NII. Partially
offsetting the year-over-year increase in NII were lower balances
on loans as well as available for sale securities.
NII was $205.1 million for the full-year 2021,
up $15.6 million, or 8.2%, from $189.6 million for the full-year
2020. This increase was primarily driven by: (i) lower cost of
total deposits and Federal Home Loan Bank advances; (ii) lower
average balance of CDs, brokered deposits and FHLB advances, and
(iii) higher average yields on loans. These were partially offset
by: (i) lower average balance of earning assets; (ii) higher
average balance of Senior Notes as these were issued late in the
second quarter of 2020, and (iii) higher average balance of
interest bearing and savings and money market deposits.
NIM was 3.17% in the fourth quarter of 2021, up
23 basis points from 2.94% in the third quarter of 2021 and up 56
basis points from 2.61% in the fourth quarter of 2020. To support
NIM growth, the Company continues to proactively seek to increase
spreads in loan originations. NIM was 2.90% for the full-year 2021,
up 38 basis points from 2.52% for the full-year 2020.
Noninterest income
In the fourth quarter of 2021, noninterest
income was $77.3 million, up $63.9 million, or 475.3%, from $13.4
million in the third quarter of 2021. The increase was primarily
driven by a $62.4 million gain on the sale of the Company’s
headquarters building in the fourth quarter of 2021. Also
contributing to the increase in noninterest income
quarter-over-quarter were higher (i) derivative client income; (ii)
income from brokerage, advisory and fiduciary activities, (iii)
mortgage banking income; and (iv) total deposit and service
fees.
Noninterest income increased $65.8 million, or
571.2%, in the fourth quarter of 2021 from $11.5 million in the
fourth quarter of 2020. The year-over-year increase in noninterest
income was primarily driven by the $62.4 million gain on the sale
of the Company’s headquarters building. Also contributing to the
increase in noninterest income year-over-year were higher (i)
derivative client income; (ii) mortgage banking income; (iii)
income from brokerage, advisory and fiduciary activities, and (iv)
total deposit and service fees. The increase was partially offset
by a decrease of $1.1 million in gains on sale of debt
securities.
In the full-year 2021, noninterest income
increased $47.2 million, or 64.2%, from $73.5 million in the
full-year 2020. This increase was primarily driven by the $62.4
million gain on sale of the Company’s headquarters building. Also
contributing to the increase in noninterest income for the full
year 2021 were: (i) a net gain of $3.8 million on the sale of $95.1
million of PPP loans in the second quarter of 2021; (ii) $1.7
million higher income from brokerage, advisory and fiduciary
activities; (iii) mortgage banking income of $1.7 million; (iv)
$1.4 million higher total deposit and service fees, and (v) $0.8
million higher derivative client income. These increases were
partially offset by a decrease in net gains on securities of $23.3
million, and a net loss of $2.5 million on the early termination of
$235 million of FHLB advances during the period.
Amerant Mortgage continues to execute on its
growth strategy. In the fourth quarter of 2021, AMTM received 166
applications and funded 61 loans totaling $32.04 million. Total
mortgage loans held for sale were $14.9 million as of December 31,
2021. For the full year 2021, AMTM received 299 applications and
funded 109 loans totaling $52.6 million.
The Company’s assets under management and
custody (“AUM”) totaled $2.22 billion as of December 31, 2021,
increasing $32.8 million, or 1.5%, from $2.19 billion as of
September 30, 2021, and $248.8 million, or 12.6%, from $1.97
billion as of December 31, 2020. The quarter-over-quarter increase
in AUM was primarily driven by net new assets of $28.6 million. The
year-over-year increase in AUM was primarily driven by increased
market value as well as net new assets of $106.7 million. Net new
assets represent 87.3% and 42.9% of the quarter-over-quarter and
year-over-year increases, respectively, as a result of the increase
in share of wallet attributed to the Company’s relationship-centric
strategy.
Noninterest expense
Fourth quarter of 2021 noninterest expense was
$55.1 million, up $6.7 million, or 13.8%, from $48.4 million in the
third quarter of 2021. The increase was primarily driven by: (i)
higher consulting, legal and other professional fees in connection
with the Merger completed on November 18, 2021 as well as expenses
related to consulting services received from FIS; (ii) higher
salaries and employee benefits primarily as a result of new hires
in the mortgage and private banking businesses as well as higher
variable compensation expenses resulting from higher estimated
payouts to match expected performance; (iii) higher occupancy and
equipment costs in connection with the lease termination of the
Fort Lauderdale branch closed in 2020, and (iv) higher marketing
expenses as multiple brand awareness initiatives were deployed
during the fourth quarter. These increases were partially offset by
lower depreciation and amortization expenses, which includes the
effect of the sale of the Company’s headquarters building, and
lower FDIC assessment and insurance expenses. Total
full-time-equivalent employees (“FTEs”) at December 31, 2021 were
763. As a result of the Company’s agreement with FIS, Amerant
transferred certain functions, reducing total FTEs to 683 effective
January 1, 2022.
Noninterest expense in the fourth quarter of
2021, increased $3.5 million, or 6.7% compared to $51.6 million in
the fourth quarter of 2020. The increase was primarily driven by
higher consulting, legal and other professional fees in connection
with the Merger completed on November 18, 2021, expenses related to
consulting services received from FIS and to the onboarding of the
new firm as a result of outsourcing of the Company’s internal audit
function, as well as higher marketing expenses. This was partially
offset by lower depreciation and amortization expenses primarily
due to lower additional expenses related to branch closures and
lower expenses due to the leasing of the Beacon operations center
and the Company’s headquarters building (both previously owned). In
addition, there was a decrease in total salaries and employee
benefits primarily driven by lower severance expenses. The decrease
in total salaries and employee benefits was partially offset by:
(i) higher bonus compensation due to the new long term incentive
(“LTI”) program which was launched in February 2021, and
adjustments to the Company’s non-equity variable compensation
program in 2021, at expected performance levels, after having
curtailed it in 2020 due to the COVID-19 pandemic, and (ii) higher
salaries and employee benefits expenses in connection with new
hires, primarily in the mortgage and private banking
businesses.
In the full-year 2021, noninterest expense
increased $19.5 million, or 10.9%, compared to $178.7 million in
the full-year 2020. This increase was primarily driven by: (i)
higher professional and other services fees primarily due to the
Merger, expenses related to consulting services received from FIS,
the onboarding of the new firm as a result of outsourcing of the
Company’s internal audit function, higher recruitment fees and the
design of our new compensation programs; (ii) higher salary and
employee benefits primarily due to the absence of the $7.8 million
deferral of expenses directly related to PPP loans originations, in
accordance with GAAP, and new hires in the mortgage and private
banking businesses, though partially offset by staff reductions
performed at the end of 2020; (iii) an increase in equity
compensation primarily related to the aforementioned LTI program;
(iv) adjustments to the Company’s non-equity variable compensation
program in 2021, at expected performance levels, after having
curtailed it in 2020 due to the COVID-19 pandemic; (v) higher
occupancy and equipment costs primarily due to increased rent
expense resulting from the leasing of the Beacon Operations Center,
and a $0.8 million lease impairment charge related to the closing
of the NY Loan Production Office (“LPO”) in 2021; (vi) higher
marketing expenses, and (vii) telecommunication and data processing
expenses. These increases were partially offset by lower
depreciation and amortization expenses due to the aforementioned
leasing of the Beacon Operations Center and the Company’s
headquarters building.
Year-to-date, the mortgage business has recorded
$7.1 million in noninterest expenses, from which $5.5 million are
related to salaries and employee benefits expenses, $1.6 million to
mortgage lending costs, professional fees and the balance to other
noninterest expenses.
Restructuring expenses totaled $1.9 million in
the fourth quarter of 2021, compared to $0.8 million in the third
quarter of 2021 and $8.4 million in the fourth quarter of 2020. The
increase in the fourth quarter of 2021 compared to the third
quarter of 2021 was primarily due to higher one-time legal and
consulting expenses of $0.9 million, and branch closure
expenses of $0.5 million in the fourth quarter of 2021. The
decrease in the fourth quarter of 2021 compared to the fourth
quarter of 2020, was primarily driven by lower staff reductions
costs and lower branch closure expenses. Restructuring expenses
totaled $7.1 million in the full-year 2021 compared to $11.9
million in the full-year 2020. The decrease in the full-year 2021
compared to the full-year 2020 was primarily driven by lower staff
reductions costs, digital transformation and branch closure
expenses.
The efficiency ratio was 41.4% in the fourth
quarter of 2021, compared to 74.2% in the third quarter of 2021,
and 85.8% in the fourth quarter of 2020. The quarter-over-quarter
and year-over-year improvements in the efficiency ratio were
primarily driven by the gain on sale of the Company’s headquarters
building. Partially offsetting this improvement were higher
noninterest expenses as noted above. Core efficiency ratio1
increased to 75.0% in the fourth quarter of 2021 compared to 73.0%
in the third quarter of 2021 and 71.0% in the fourth quarter of
2020, also primarily driven by higher noninterest expenses as
described above, though partially offset by higher loan average
yields, including prepayment fees, and balances. For the full-year
2021 the efficiency ratio was 60.9%, compared to 68.0% for the
full-year 2020.
As part of Amerant’s continued efforts to
improve its operating efficiency, during the fourth quarter of 2021
the Company entered into a new multi-year outsourcing agreement
with financial technology leader FIS® to assume full responsibility
over a significant number of the Bank’s support functions and
staff, including certain back-office operations. Under this new
outsourcing relationship, the Bank expects to realize estimated
annual savings of approximately $12.0 million, while achieving
greater operational efficiencies and delivering advanced solutions
and services to its customers. Also, as previously announced, the
Company closed a banking center in Wellington, FL in October 2021
and expects to open a new branch in downtown Miami in the fourth
quarter of 2022.
As part of Amerant’s keen focus to generate
brand awareness, the Company continued to work on several
initiatives during the fourth quarter of 2021 and into 2022. As
mentioned during the third quarter of 2021, Amerant’s new “Imagine
a Bank” campaign was launched during the fourth quarter of 2021 and
a significant expansion to it went live on January 3, 2022. In
addition, the bank continued to leverage our partnership with the
Atlantic Division leading Florida Panthers to also drive brand
awareness.
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 December 31, 2021.
During the fourth quarter of 2021, Amerant
delivered on its previously announced commitment to simplify its
capital structure. On November 18, 2021 the Company completed “the
Merger”, by automatically converting shares of the Company’s Class
B common stock into shares of the Company’s Class A common stock
pursuant to the Merger’s terms. Additionally, during the fourth
quarter of 2021, Amerant continued to demonstrate its commitment to
increasing total return to shareholders, as evidenced by the
completion of $36.3 million of Class A shares repurchased in 2021
(including the cash out of holders of 99 shares or less in
connection with the Merger) and the declaration, on December 9,
2021, of a cash dividend of $0.06 per share of Amerant common
stock. Additionally, on January 19, 2022, the Company's Board
declared a cash dividend of $0.09 per share of common stock,
payable on February 28, 2022, to holders of record on February 11 ,
2022
Stockholders’ equity attributable to the Company
totaled $831.9 million as of December 31, 2021, up
$19.2 million, or 2.4%, from $812.7 million as of September
30, 2021, primarily driven by net income of $65.5 million in the
fourth quarter of 2021. This increase was partially offset by: (i)
an aggregate of $36.3 million of Class A shares repurchased in the
fourth quarter of 2021, including $27.9 million repurchased under
the Class A repurchase program and $8.5 million shares cashed
out in accordance with the terms of the Merger; (ii) an after-tax
decline of $6.0 million in the fair value of debt securities
available for sale, and (iii) $2.2 million of dividends declared by
the Company in the fourth quarter of 2021.
Stockholders’ equity attributable to the Company
increased $48.5 million, or 6.2%, in the full-year 2021 from $783.4
million as of December 31, 2020. This was primarily driven by net
income of $112.9 million in the year ended December 31, 2021. This
increase was partially offset by: (i) an aggregate of $36.3 million
of Class A shares repurchased in 2021, as mentioned above; (ii)
$9.6 million in Class B shares repurchased by the Company in 2021;
(iii) an after-tax decline of $16.2 million in the fair value of
debt securities available for sale, and (iv) $2.2 million of
dividends declared by the Company in the fourth quarter of
2021.
Book value per common share increased to $23.18
at December 31, 2021 compared to $21.68 at September 30, 2021.
TBV1 per common share increased to $22.55 at December 31, 2021
compared to $20.13 at September 30, 2021.
Amerant’s liquidity position includes cash and
cash equivalents of $274.2 million at the close of the fourth
quarter of 2021, compared to $166.2 million as of September 30,
2021, and $214.4 million as of December 31, 2020. Additionally, as
of the end of the fourth and third quarters of 2021 the Company,
through its subsidiary Amerant Bank, had $1.4 billion in available
borrowing capacity with the FHLB.
1 Non-GAAP measure, see “Non-GAAP Financial
Measures” for more information and Exhibit 2 for a reconciliation
to GAAP.
Fourth Quarter 2021 Earnings Conference
Call
As previously announced, the Company will hold
an earnings conference call on Thursday, January 20, 2022 at 9:00
a.m. (Eastern Time) to discuss its fourth quarter 2021 results. The
conference call and presentation materials can be accessed via
webcast by logging on from the Investor Relations section of the
Company’s website at https://investor.amerantbank.com. The online
replay will remain available for approximately one month following
the call through the above link.
About Amerant Bancorp Inc. (NASDAQ:
AMTB)
Amerant Bancorp Inc. is a bank holding company
headquartered in Coral Gables, Florida since 1979. The Company
operates through its main subsidiary, Amerant Bank, N.A. (the
“Bank”), as well as its other subsidiaries: Amerant Investments,
Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The
Company provides individuals and businesses in the U.S., as well as
select international clients, with deposit, credit and wealth
management services. The Bank, which has operated for over 40
years, is the second largest community bank headquartered in
Florida. The Bank operates 24 banking centers – 17 in South Florida
and 7 in the Houston, Texas area. For more information, visit
investor.amerantbank.com.
FIS® and any associated brand names/logos are the trademarks of
FIS and/or its affiliates.
Cautionary Notice Regarding
Forward-Looking Statements
This press release contains “forward-looking
statements” including statements regarding our outsourcing
agreement with FIS, and the Company's ability to achieve savings
and greater operational efficiencies, as well as 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 outsourcing relationship with FIS, as well as other
statements as 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, 2020, in our
quarterly report on Form 10-Q for the quarter ended June 30, 2021
and in our other filings with the U.S. Securities and Exchange
Commission (the “SEC”), which are available at the SEC’s website
www.sec.gov.
Interim Financial
Information
Unaudited financial information as of and for
interim periods, including the three and twelve month periods ended
December 31, 2021 and the three month period ended December 31,
2020, may not reflect our results of operations for our fiscal year
ended, or financial condition as of December 31, 2021, or any other
period of time or date.
Non-GAAP Financial Measures
The Company supplements its financial results
that are determined in accordance with accounting principles
generally accepted in the United States of America (“GAAP”) with
non-GAAP financial measures, such as “pre-provision net revenue
(PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core net
income (loss)”, “core net income (loss) per share (basic and
diluted)”, “core return on assets (Core ROA)”, “core return on
equity (Core ROE)”, “core efficiency ratio”, and “tangible
stockholders’ equity (book value) per common share”. This
supplemental information is not required by, or is not presented in
accordance with GAAP. The Company refers to these financial
measures and ratios as “non-GAAP financial measures” and they
should not be considered in isolation or as a substitute for the
GAAP measures presented herein.
We use certain non-GAAP financial measures,
including those mentioned above, both to explain our results to
shareholders and the investment community and in the internal
evaluation and management of our businesses. Our management
believes that these non-GAAP financial measures and the information
they provide are useful to investors since these measures permit
investors to view our performance using the same tools that our
management uses to evaluate our past performance and prospects for
future performance, especially in light of the additional costs we
have incurred in connection with the Company’s restructuring
activities that began in 2018 and continued in 2021, including the
effect of non-core banking activities such as the sale of loans and
securities, the sale of our corporate headquarters in the fourth
quarter of 2021, and other non-recurring actions intended to
improve customer service and operating performance. While we
believe that these non-GAAP financial measures are useful
in evaluating our performance, this information should be
considered as supplemental and not as a substitute for or superior
to the related financial information prepared in accordance with
GAAP. Additionally, these non-GAAP financial measures may
differ from similar measures presented by other companies.
Exhibit 2 reconciles these non-GAAP financial
measures to reported results.
Exhibit 1- Selected Financial
Information
The following table sets forth selected financial information
derived from our unaudited and audited consolidated financial
statements.
| (in thousands) |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
| Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
7,638,399 |
|
$ |
7,489,305 |
|
$ |
7,532,844 |
|
$ |
7,751,098 |
|
$ |
7,770,893 |
| Total investments |
|
1,341,241 |
|
|
1,422,738 |
|
|
1,359,240 |
|
|
1,375,292 |
|
|
1,372,567 |
| Total gross loans (1) |
|
5,567,540 |
|
|
5,478,924 |
|
|
5,608,548 |
|
|
5,754,838 |
|
|
5,842,337 |
| Allowance for loan losses |
|
69,899 |
|
|
83,442 |
|
|
104,185 |
|
|
110,940 |
|
|
110,902 |
| Total deposits |
|
5,630,871 |
|
|
5,626,377 |
|
|
5,674,908 |
|
|
5,678,079 |
|
|
5,731,643 |
| Core deposits (2) |
|
4,293,031 |
|
|
4,183,587 |
|
|
4,041,867 |
|
|
3,795,949 |
|
|
3,690,081 |
| Advances from the FHLB and
other borrowings |
|
809,577 |
|
|
809,095 |
|
|
808,614 |
|
|
1,050,000 |
|
|
1,050,000 |
| Senior notes |
|
58,894 |
|
|
58,815 |
|
|
58,736 |
|
|
58,656 |
|
|
58,577 |
| Junior subordinated
debentures |
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
| Stockholders' equity
(3)(4)(9) |
|
831,873 |
|
|
812,662 |
|
|
799,068 |
|
|
785,014 |
|
|
783,421 |
| Assets under management and
custody (5) |
|
2,221,077 |
|
|
2,188,317 |
|
|
2,132,516 |
|
|
2,018,870 |
|
|
1,972,321 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Years Ended December 31, |
| (in thousands, except
percentages and per share amounts) |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
|
2021 |
|
|
|
2020 |
|
| Consolidated Results
of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
55,780 |
|
|
$ |
51,821 |
|
|
$ |
49,971 |
|
|
$ |
47,569 |
|
|
$ |
48,652 |
|
|
$ |
205,141 |
|
|
$ |
189,552 |
|
| (Reversal of) provision for
loan losses |
|
(6,500 |
) |
|
|
(5,000 |
) |
|
|
(5,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
(16,500 |
) |
|
|
88,620 |
|
| Noninterest income |
|
77,290 |
|
|
|
13,434 |
|
|
|
15,734 |
|
|
|
14,163 |
|
|
|
11,515 |
|
|
|
120,621 |
|
|
|
73,470 |
|
| Noninterest expense |
|
55,088 |
|
|
|
48,404 |
|
|
|
51,125 |
|
|
|
43,625 |
|
|
|
51,629 |
|
|
|
198,242 |
|
|
|
178,736 |
|
| Net income (loss) attributable
to Amerant Bancorp Inc. (6) |
|
65,469 |
|
|
|
17,031 |
|
|
|
15,962 |
|
|
|
14,459 |
|
|
|
8,473 |
|
|
|
112,921 |
|
|
|
(1,722 |
) |
| Effective income tax rate |
|
23.88 |
% |
|
|
24.96 |
% |
|
|
22.65 |
% |
|
|
20.15 |
% |
|
|
0.76 |
% |
|
|
23.41 |
% |
|
|
60.27 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' book value per
common share |
$ |
23.18 |
|
|
$ |
21.68 |
|
|
$ |
21.27 |
|
|
$ |
20.70 |
|
|
$ |
20.70 |
|
|
$ |
23.18 |
|
|
$ |
20.70 |
|
| Tangible stockholders' equity
(book value) per common share (7) |
$ |
22.55 |
|
|
$ |
21.08 |
|
|
$ |
20.67 |
|
|
$ |
20.13 |
|
|
$ |
20.13 |
|
|
$ |
22.55 |
|
|
$ |
20.13 |
|
| Basic earnings (loss) per
common share |
$ |
1.79 |
|
|
$ |
0.46 |
|
|
$ |
0.43 |
|
|
$ |
0.38 |
|
|
$ |
0.21 |
|
|
$ |
3.04 |
|
|
$ |
(0.04 |
) |
| Diluted earnings (loss) per
common share (8) |
$ |
1.77 |
|
|
$ |
0.45 |
|
|
$ |
0.42 |
|
|
$ |
0.38 |
|
|
$ |
0.20 |
|
|
$ |
3.01 |
|
|
$ |
(0.04 |
) |
| Basic weighted average shares
outstanding |
|
36,607 |
|
|
|
37,134 |
|
|
|
37,330 |
|
|
|
37,618 |
|
|
|
41,326 |
|
|
|
37,169 |
|
|
|
41,737 |
|
| Diluted weighted average
shares outstanding (8) |
|
37,065 |
|
|
|
37,518 |
|
|
|
37,693 |
|
|
|
37,846 |
|
|
|
41,688 |
|
|
|
37,528 |
|
|
|
41,737 |
|
| Cash dividend declared per
common share (9) |
$ |
0.06 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.06 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Years Ended December 31, |
| |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
2021 |
|
|
2020 |
|
| Other Financial and
Operating Data (10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profitability
Indicators (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / Average total interest earning assets (NIM)
(11) |
3.17 |
% |
|
2.94 |
% |
|
2.81 |
% |
|
2.66 |
% |
|
2.61 |
% |
|
2.90 |
% |
|
2.52 |
% |
| Net income (loss) / Average
total assets (ROA) (12) |
3.45 |
% |
|
0.90 |
% |
|
0.83 |
% |
|
0.76 |
% |
|
0.42 |
% |
|
1.50 |
% |
|
(0.02)% |
| Net income (loss) / Average
stockholders' equity (ROE) (13) |
32.04 |
% |
|
8.38 |
% |
|
8.11 |
% |
|
7.47 |
% |
|
4.09 |
% |
|
14.19 |
% |
|
(0.21)% |
| Noninterest income / Total
revenue (14) |
58.08 |
% |
|
20.59 |
% |
|
23.95 |
% |
|
22.94 |
% |
|
19.14 |
% |
|
37.03 |
% |
|
27.93 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Indicators
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital ratio (15) |
14.56 |
% |
|
14.53 |
% |
|
14.17 |
% |
|
14.12 |
% |
|
13.96 |
% |
|
14.56 |
% |
|
13.96 |
% |
| Tier 1 capital ratio (16) |
13.45 |
% |
|
13.28 |
% |
|
12.92 |
% |
|
12.87 |
% |
|
12.71 |
% |
|
13.45 |
% |
|
12.71 |
% |
| Tier 1 leverage ratio
(17) |
11.52 |
% |
|
11.18 |
% |
|
10.75 |
% |
|
10.54 |
% |
|
10.11 |
% |
|
11.52 |
% |
|
10.11 |
% |
| Common equity tier 1 capital
ratio (CET1) (18) |
12.50 |
% |
|
12.31 |
% |
|
11.95 |
% |
|
11.90 |
% |
|
11.73 |
% |
|
12.50 |
% |
|
11.73 |
% |
| Tangible common equity ratio
(19) |
10.63 |
% |
|
10.58 |
% |
|
10.35 |
% |
|
9.88 |
% |
|
9.83 |
% |
|
10.63 |
% |
|
9.83 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality
Indicators (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing assets / Total
assets (20) |
0.78 |
% |
|
1.24 |
% |
|
1.61 |
% |
|
1.16 |
% |
|
1.13 |
% |
|
0.78 |
% |
|
1.13 |
% |
| Non-performing loans / Total
loans (1) (21) |
0.89 |
% |
|
1.51 |
% |
|
2.16 |
% |
|
1.56 |
% |
|
1.50 |
% |
|
0.89 |
% |
|
1.50 |
% |
| Allowance for loan losses /
Total non-performing loans |
140.41 |
% |
|
100.84 |
% |
|
86.02 |
% |
|
123.92 |
% |
|
126.46 |
% |
|
140.41 |
% |
|
126.46 |
% |
| Allowance for loan losses /
Total loans held for investment (1) |
1.29 |
% |
|
1.59 |
% |
|
1.86 |
% |
|
1.93 |
% |
|
1.90 |
% |
|
1.29 |
% |
|
1.90 |
% |
| Net charge-offs /
Average total loans held for investment (22) |
0.52 |
% |
|
1.16 |
% |
|
0.12 |
% |
|
— |
% |
|
0.40 |
% |
|
0.44 |
% |
|
0.52 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency Indicators
(% except FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expense / Average
total assets |
2.90 |
% |
|
2.55 |
% |
|
2.67 |
% |
|
2.28 |
% |
|
2.59 |
% |
|
2.63 |
% |
|
2.23 |
% |
| Salaries and employee benefits
/ Average total assets |
1.65 |
% |
|
1.53 |
% |
|
1.61 |
% |
|
1.38 |
% |
|
1.62 |
% |
|
1.56 |
% |
|
1.39 |
% |
| Other operating expenses/
Average total assets (23) |
1.25 |
% |
|
1.02 |
% |
|
1.06 |
% |
|
0.90 |
% |
|
0.97 |
% |
|
1.07 |
% |
|
0.84 |
% |
| Efficiency ratio (24) |
41.40 |
% |
|
74.18 |
% |
|
77.80 |
% |
|
70.67 |
% |
|
85.81 |
% |
|
60.85 |
% |
|
67.95 |
% |
| Full-Time-Equivalent Employees
(FTEs) (25) |
763 |
|
733 |
|
719 |
|
731 |
|
713 |
|
763 |
|
713 |
| |
Three Months Ended |
|
Years Ended December 31, |
| (in thousands, except
percentages and per share amounts) |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
|
2021 |
|
|
|
2020 |
|
| Core Selected
Consolidated Results of Operations and Other Data (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net revenue (PPNR) |
$ |
79,141 |
|
|
$ |
17,485 |
|
|
$ |
15,397 |
|
|
$ |
18,107 |
|
|
$ |
8,538 |
|
|
$ |
130,130 |
|
|
$ |
84,286 |
|
| Core pre-provision net revenue
(Core PPNR) |
$ |
18,911 |
|
|
$ |
18,297 |
|
|
$ |
16,934 |
|
|
$ |
15,765 |
|
|
$ |
17,641 |
|
|
$ |
69,907 |
|
|
$ |
71,023 |
|
| Core net income (loss) |
$ |
19,339 |
|
|
$ |
17,669 |
|
|
$ |
17,199 |
|
|
$ |
12,589 |
|
|
$ |
20,917 |
|
|
$ |
66,796 |
|
|
$ |
(6,991 |
) |
| Core basic earnings (loss) per
common share |
|
0.53 |
|
|
|
0.48 |
|
|
|
0.46 |
|
|
|
0.33 |
|
|
|
0.50 |
|
|
|
1.80 |
|
|
|
(0.17 |
) |
| Core earnings (loss) per
diluted common share (8) |
|
0.52 |
|
|
|
0.47 |
|
|
|
0.46 |
|
|
|
0.33 |
|
|
|
0.50 |
|
|
|
1.78 |
|
|
|
(0.17 |
) |
| Core net income (loss) /
Average total assets (Core ROA) (12) |
|
1.02 |
% |
|
|
0.93 |
% |
|
|
0.9 |
% |
|
|
0.66 |
% |
|
|
1.05 |
% |
|
|
0.89 |
% |
|
(0.09)% |
| Core net income (loss) /
Average stockholders' equity (Core ROE) (13) |
|
9.46 |
% |
|
|
8.69 |
% |
|
|
8.74 |
% |
|
|
6.50 |
% |
|
|
10.08 |
% |
|
|
8.39 |
% |
|
(0.83)% |
| Core efficiency ratio
(26) |
|
74.98 |
% |
|
|
72.95 |
% |
|
|
74.45 |
% |
|
|
73.35 |
% |
|
|
71.02 |
% |
|
|
73.96 |
% |
|
|
70.14 |
% |
| __________________ |
|
(1) |
Total gross loans include loans held for investment net of
unamortized deferred loan origination fees and costs. In addition,
at December 31, 2021, September 30, 2021 and March 31, 2021, total
loans include $143.2 million, $219.1 million and $1.0 million,
respectively, in loans held for sale carried at the lower of cost
or estimated fair value. During the fourth quarter of 2021, the
Company sold around [$49.4 million] in loans held for sale carried
at the lower of cost or estimated fair value related to the NY
portfolio. In Addition, as of December 31, 2021, September 30, 2021
and June 30, 2021, total loans include $14.9 million, $5.8 million
and $1.8 million, respectively, in mortgage loans held for sale
carried at fair value. |
|
(2) |
Core deposits consist of total deposits excluding all time
deposits. |
|
(3) |
In the fourth quarter of 2021, the Company’s shareholders approved
the Merger, previously announced by the Company, pursuant to which
a subsidiary of the Company merged with and into the Company. 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 a Class A common stock repurchase program (the “Class A
Common Stock Repurchase Program”) which provides 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. |
|
(4) |
On March 10, 2021, the Company’s Board of Directors approved a
stock repurchase program which provided for the potential
repurchase of up to $40 million of shares of the Company’s Class B
common stock (the “ Class B Common Stock Repurchase Program”). In
the third, second and first quarters of 2021, the Company
repurchased an aggregate of 63,000, 386,195 and 116,037 shares of
Class B common stock, respectively, at a weighted average price per
share of $18.55, $16.62 and $15.98, respectively, under the Class B
Common Stock Repurchase Program. In the third quarter of 2021, the
Company’s Board of Directors terminated the Class B Common Stock
Repurchase Program. In the fourth quarter of 2020, the Company
completed a modified “Dutch auction” tender offer to purchase, for
cash, up to $50.0 million of shares of its Class B common stock,
and accepted to purchase 4,249,785 shares of Class B common stock
in the tender offer at a price of $12.55 per share. The purchase
price for this transaction was approximately $54.1 million,
including $0.8 million in related fees and other expenses. |
|
(5) |
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. |
|
(6) |
In the three months ended December 31, 2021, September 30, 2021 and
June 30, 2021, and in the year ended December 31, 2021, net income
exclude losses of $1.2 million, $0.6 million, $0.8 million and $2.6
million, respectively, attributable to a 49% minority interest of
Amerant Mortgage LLC. We had no minority interest at any of the
other periods shown. |
|
(7) |
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. |
|
(8) |
In the three months ended December 31, 2021, September 30, 2021 and
June 30, 2021 and in the year ended December 31, 2021, potential
dilutive instruments consisted of unvested shares of restricted
stock, restricted stock units and performance share units
(restricted stock and restricted stock units for all of the other
periods shown). For the year ended December 31, 2020, potential
dilutive instruments were not included in the diluted earnings per
share computation because the Company reported a net loss and their
inclusion would have an antidilutive effect. 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. |
|
(9) |
In the fourth quarter of 2021, the Company’s Board of Directors
declared a cash dividend of $0.06 per share of the Company’s common
stock. The dividend was paid on or before January 15, 2022 to
holders of record as of December 22, 2021. The aggregate amount in
connection with this dividend is $2.2 million. |
|
(10) |
Operating data for the periods presented have been annualized. |
|
(11) |
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. |
|
(12) |
Calculated based upon the average daily balance of total
assets. |
|
(13) |
Calculated based upon the average daily balance of stockholders’
equity. |
|
(14) |
Total revenue is the result of net interest income before provision
for loan losses plus noninterest income. |
|
(15) |
Total stockholders’ equity divided by total risk-weighted assets,
calculated according to the standardized regulatory capital ratio
calculations. |
|
(16) |
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. |
|
(17) |
Tier 1 capital divided by quarter to date average assets. |
|
(18) |
CET1 capital divided by total risk-weighted assets. |
|
(19) |
Tangible common equity is calculated as the ratio of common equity
less goodwill and other intangibles divided by total assets less
goodwill and other intangible assets. Other intangible assets
consist of, among other things, mortgage servicing rights and are
included in other assets in the Company’s consolidated balance
sheets. |
|
(20) |
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. |
|
(21) |
Non-performing loans include all accruing loans past due by 90 days
or more, all nonaccrual loans and restructured loans that are
considered TDRs. |
|
(22) |
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
fourth, third and second quarters of 2021, and during the fourth
quarter of 2020, there were net charge offs of $7.0 million, $15.7
million, $1.8 million and $5.9 million, respectively. In the first
quarter of 2021, there were zero net charge offs. During the 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 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 one commercial loan relationship. |
|
(23) |
Other operating expenses is the result of total noninterest expense
less salary and employee benefits. |
|
(24) |
Efficiency ratio is the result of noninterest expense divided by
the sum of noninterest income and NII. |
|
(25) |
As of December 31, 2021, September 30, 2021 and June 30, 2021,
includes 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”). |
|
(26) |
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 sale of our corporate headquarters in the fourth
quarter of 2021, and other non-recurring actions intended to
improve customer service and operating performance. The Company
believes these adjusted numbers are useful to understand the
Company’s performance absent these transactions and events.
| |
Three Months Ended, |
|
Years Ended December 31, |
| (in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
|
|
2021 |
|
|
2020 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Amerant Bancorp Inc. |
$ |
65,469 |
|
$ |
17,031 |
|
$ |
15,962 |
|
$ |
14,459 |
|
$ |
8,473 |
|
|
$ |
112,921 |
|
$ |
(1,722 |
) |
| Plus: (reversal of) provision
for loan losses |
|
(6,500 |
) |
|
(5,000 |
) |
|
(5,000 |
) |
|
— |
|
|
— |
|
|
|
(16,500 |
) |
|
88,620 |
|
| Plus: provision for income tax
expense (benefit)(1) |
|
20,172 |
|
|
5,454 |
|
|
4,435 |
|
|
3,648 |
|
|
65 |
|
|
|
33,709 |
|
|
(2,612 |
) |
| Pre-provision net revenue
(PPNR) |
|
79,141 |
|
|
17,485 |
|
|
15,397 |
|
|
18,107 |
|
|
8,538 |
|
|
|
130,130 |
|
|
84,286 |
|
| Plus: restructuring costs |
|
1,895 |
|
|
758 |
|
|
4,164 |
|
|
240 |
|
|
8,407 |
|
|
|
7,057 |
|
|
11,925 |
|
| Less: non-routine noninterest
income items |
|
(62,125 |
) |
|
54 |
|
|
(2,627 |
) |
|
(2,582 |
) |
|
696 |
|
|
|
(67,280 |
) |
|
(25,188 |
) |
| Core pre-provision net
revenue |
$ |
18,911 |
|
$ |
18,297 |
|
$ |
16,934 |
|
$ |
15,765 |
|
$ |
17,641 |
|
|
$ |
69,907 |
|
$ |
71,023 |
|
| |
|
|
|
|
|
|
|
|
| Total noninterest income |
$ |
77,290 |
|
$ |
13,434 |
|
$ |
15,734 |
|
$ |
14,163 |
|
$ |
11,515 |
|
|
$ |
120,621 |
|
$ |
73,470 |
|
| Less: Non-routine noninterest
income items: |
|
|
|
|
|
|
|
|
|
Less: gain on sale of Headquarters building (1) |
|
62,387 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
62,387 |
|
|
— |
|
|
Loss on sale of the Beacon Operations Center (2) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,729 |
) |
|
|
— |
|
|
(1,729 |
) |
|
Securities (loss) gains, net |
|
(117 |
) |
|
(54 |
) |
|
1,329 |
|
|
2,582 |
|
|
1,033 |
|
|
|
3,740 |
|
|
26,990 |
|
|
Loss on early extinguishment of FHLB advances, net |
|
— |
|
|
— |
|
|
(2,488 |
) |
|
— |
|
|
— |
|
|
|
(2,488 |
) |
|
(73 |
) |
|
(Loss) gain on sale of loans |
|
(145 |
) |
|
— |
|
|
3,786 |
|
|
— |
|
|
— |
|
|
|
3,641 |
|
|
— |
|
|
Total non-routine noninterest income items |
$ |
62,125 |
|
$ |
(54 |
) |
$ |
2,627 |
|
$ |
2,582 |
|
$ |
(696 |
) |
|
$ |
67,280 |
|
$ |
25,188 |
|
| Core noninterest
income |
$ |
15,165 |
|
$ |
13,488 |
|
$ |
13,107 |
|
$ |
11,581 |
|
$ |
12,211 |
|
|
$ |
53,341 |
|
$ |
48,282 |
|
| |
|
|
|
|
|
|
|
|
| Total noninterest
expenses |
$ |
55,088 |
|
$ |
48,404 |
|
$ |
51,125 |
|
$ |
43,625 |
|
$ |
51,629 |
|
|
$ |
198,242 |
|
$ |
178,736 |
|
| Less: restructuring costs
(3): |
|
|
|
|
|
|
|
|
|
Staff reduction costs (4) |
|
26 |
|
|
250 |
|
|
3,322 |
|
|
6 |
|
|
5,345 |
|
|
|
3,604 |
|
|
6,405 |
|
|
Legal and Consulting fees (5) |
|
1,277 |
|
|
412 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,689 |
|
|
— |
|
|
Digital transformation expenses |
|
50 |
|
|
96 |
|
|
32 |
|
|
234 |
|
|
658 |
|
|
|
412 |
|
|
3,116 |
|
|
Lease impairment charge |
|
— |
|
|
— |
|
|
810 |
|
|
— |
|
|
— |
|
|
|
810 |
|
|
— |
|
|
Branch closure expenses (6) |
|
542 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,404 |
|
|
|
542 |
|
|
2,404 |
|
|
Total restructuring costs |
$ |
1,895 |
|
$ |
758 |
|
$ |
4,164 |
|
$ |
240 |
|
$ |
8,407 |
|
|
$ |
7,057 |
|
$ |
11,925 |
|
| Core noninterest
expenses |
$ |
53,193 |
|
$ |
47,646 |
|
$ |
46,961 |
|
$ |
43,385 |
|
$ |
43,222 |
|
|
$ |
191,185 |
|
$ |
166,811 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (in thousands, except
percentages and per share amounts) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
|
|
2021 |
|
|
2020 |
|
| Net income (loss) attributable
to Amerant Bancorp Inc. |
$ |
65,469 |
|
$ |
17,031 |
|
$ |
15,962 |
|
$ |
14,459 |
|
$ |
8,473 |
|
|
$ |
112,921 |
|
$ |
(1,722 |
) |
| Plus after-tax restructuring
costs: |
|
|
|
|
|
|
|
|
| Restructuring costs before
income tax effect |
|
1,895 |
|
|
758 |
|
|
4,164 |
|
|
240 |
|
|
8,407 |
|
|
|
7,057 |
|
|
11,925 |
|
| Income tax effect (7) |
|
(478 |
) |
|
(229 |
) |
|
(897 |
) |
|
(48 |
) |
|
(6,455 |
) |
|
|
(1,652 |
) |
|
(7,187 |
) |
| Total after-tax restructuring
costs |
|
1,417 |
|
|
529 |
|
|
3,267 |
|
|
192 |
|
|
1,952 |
|
|
|
5,405 |
|
|
4,738 |
|
| Less before-tax non-routine
items in noninterest income: |
|
(62,125 |
) |
|
54 |
|
|
(2,627 |
) |
|
(2,582 |
) |
|
696 |
|
|
|
(67,280 |
) |
|
(25,188 |
) |
| Income tax effect (7) |
|
14,578 |
|
|
55 |
|
|
597 |
|
|
520 |
|
|
9,796 |
|
|
|
15,750 |
|
|
15,181 |
|
| Total after-tax non-routine
items in noninterest income |
|
(47,547 |
) |
|
109 |
|
|
(2,030 |
) |
|
(2,062 |
) |
|
10,492 |
|
|
|
(51,530 |
) |
|
(10,007 |
) |
| Core net income
(loss) |
$ |
19,339 |
|
$ |
17,669 |
|
$ |
17,199 |
|
$ |
12,589 |
|
$ |
20,917 |
|
|
$ |
66,796 |
|
$ |
(6,991 |
) |
| |
|
|
|
|
|
|
|
|
| Basic earnings (loss) per
share |
$ |
1.79 |
|
$ |
0.46 |
|
$ |
0.43 |
|
$ |
0.38 |
|
$ |
0.21 |
|
|
$ |
3.04 |
|
$ |
(0.04 |
) |
| Plus: after tax impact of
restructuring costs |
|
0.04 |
|
|
0.02 |
|
|
0.09 |
|
|
0.01 |
|
|
0.04 |
|
|
|
0.15 |
|
|
0.11 |
|
| Less: after tax impact of
non-routine items in noninterest income |
|
(1.30 |
) |
|
— |
|
|
(0.06 |
) |
|
(0.06 |
) |
|
0.25 |
|
|
|
(1.39 |
) |
|
(0.24 |
) |
| Total core basic
earnings (loss) per common share |
$ |
0.53 |
|
$ |
0.48 |
|
$ |
0.46 |
|
$ |
0.33 |
|
$ |
0.50 |
|
|
$ |
1.80 |
|
$ |
(0.17 |
) |
| |
|
|
|
|
|
|
|
|
| Diluted earnings (loss) per
share (8) |
$ |
1.77 |
|
$ |
0.45 |
|
$ |
0.42 |
|
$ |
0.38 |
|
$ |
0.20 |
|
|
$ |
3.01 |
|
$ |
(0.04 |
) |
| Plus: after tax impact of
restructuring costs |
|
0.04 |
|
|
0.02 |
|
|
0.09 |
|
|
0.01 |
|
|
0.05 |
|
|
|
0.14 |
|
|
0.11 |
|
| Less: after tax impact of
non-routine items in noninterest income |
|
(1.29 |
) |
|
— |
|
|
(0.05 |
) |
|
(0.06 |
) |
|
0.25 |
|
|
|
(1.37 |
) |
|
(0.24 |
) |
| Total core diluted
earnings (loss) per common share |
$ |
0.52 |
|
$ |
0.47 |
|
$ |
0.46 |
|
$ |
0.33 |
|
$ |
0.50 |
|
|
$ |
1.78 |
|
$ |
(0.17 |
) |
| |
|
|
|
|
|
|
|
|
| Net income (loss) / Average
total assets (ROA) |
|
3.45 |
% |
|
0.90 |
% |
|
0.83 |
% |
|
0.76 |
% |
|
0.42 |
% |
|
|
1.50 |
% |
(0.02)% |
| Plus: after tax impact of
restructuring costs |
|
0.07 |
% |
|
0.02 |
% |
|
0.17 |
% |
|
0.01 |
% |
|
0.11 |
% |
|
|
0.07 |
% |
|
0.06 |
% |
| Less: after tax impact of
non-routine items in noninterest income |
(2.50)% |
|
0.01 |
% |
(0.10)% |
(0.11)% |
|
0.52 |
% |
|
(0.68)% |
(0.13)% |
| Core net income (loss)
/ Average total assets (Core ROA) |
|
1.02 |
% |
|
0.93 |
% |
|
0.90 |
% |
|
0.66 |
% |
|
1.05 |
% |
|
|
0.89 |
% |
(0.09)% |
| |
|
|
|
|
|
|
|
|
| Net income (loss) / Average
stockholders' equity (ROE) |
|
32.04 |
% |
|
8.38 |
% |
|
8.11 |
% |
|
7.47 |
% |
|
4.09 |
% |
|
|
14.19 |
% |
(0.21)% |
| Plus: after tax impact of
restructuring costs |
|
0.69 |
% |
|
0.26 |
% |
|
1.66 |
% |
|
0.10 |
% |
|
0.94 |
% |
|
|
0.68 |
% |
|
0.57 |
% |
| Less: after tax impact of
non-routine items in noninterest income |
(23.27)% |
|
0.05 |
% |
(1.03)% |
(1.07)% |
|
5.05 |
% |
|
(6.48)% |
(1.19)% |
| Core net income (loss)
/ Average stockholders' equity (Core ROE) |
|
9.46 |
% |
|
8.69 |
% |
|
8.74 |
% |
|
6.50 |
% |
|
10.08 |
% |
|
|
8.39 |
% |
(0.83)% |
| |
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
41.40 |
% |
|
74.18 |
% |
|
77.81 |
% |
|
70.67 |
% |
|
85.81 |
% |
|
|
60.85 |
% |
|
67.95 |
% |
| Less: impact of restructuring
costs |
(1.43)% |
(1.16)% |
(6.34)% |
(0.39)% |
(13.97)% |
|
(2.16)% |
(4.51)% |
| Plus: impact of non-routine
items in noninterest income |
|
35.01 |
% |
(0.07)% |
|
2.98 |
% |
|
3.07 |
% |
(0.82)% |
|
|
15.27 |
% |
|
6.70 |
% |
| Core efficiency
ratio |
|
74.98 |
% |
|
72.95 |
% |
|
74.45 |
% |
|
73.35 |
% |
|
71.02 |
% |
|
|
73.96 |
% |
|
70.14 |
% |
| |
Three Months Ended, |
|
Year Ended December 31, |
| (in thousands, except
percentages and per share amounts) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
|
|
2021 |
|
|
2020 |
|
| |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
$ |
831,873 |
|
$ |
812,662 |
|
$ |
799,068 |
|
$ |
785,014 |
|
$ |
783,421 |
|
|
$ |
831,873 |
|
$ |
783,421 |
|
| Less: goodwill and other
intangibles (9) |
|
(22,528 |
) |
|
(22,529 |
) |
|
(22,505 |
) |
|
(21,515 |
) |
|
(21,561 |
) |
|
|
(22,528 |
) |
|
(21,561 |
) |
| Tangible common stockholders'
equity |
$ |
809,345 |
|
$ |
790,133 |
|
$ |
776,563 |
|
$ |
763,499 |
|
$ |
761,860 |
|
|
$ |
809,345 |
|
$ |
761,860 |
|
| Total assets |
|
7,638,399 |
|
|
7,489,305 |
|
|
7,532,844 |
|
|
7,751,098 |
|
|
7,770,893 |
|
|
|
7,638,399 |
|
|
7,770,893 |
|
| Less: goodwill and other
intangibles (9) |
|
(22,528 |
) |
|
(22,529 |
) |
|
(22,505 |
) |
|
(21,515 |
) |
|
(21,561 |
) |
|
|
(22,528 |
) |
|
(21,561 |
) |
| Tangible assets |
$ |
7,615,871 |
|
$ |
7,466,776 |
|
$ |
7,510,339 |
|
$ |
7,729,583 |
|
$ |
7,749,332 |
|
|
$ |
7,615,871 |
|
$ |
7,749,332 |
|
| Common shares outstanding |
|
35,883 |
|
|
37,487 |
|
|
37,563 |
|
|
37,922 |
|
|
37,843 |
|
|
|
35,883 |
|
|
37,843 |
|
| Tangible common equity
ratio |
|
10.63 |
% |
|
10.58 |
% |
|
10.34 |
% |
|
9.88 |
% |
|
9.83 |
% |
|
|
10.63 |
% |
|
9.83 |
% |
| Stockholders' book
value per common share |
$ |
23.18 |
|
$ |
21.68 |
|
$ |
21.27 |
|
$ |
20.70 |
|
$ |
20.70 |
|
|
$ |
23.18 |
|
$ |
20.70 |
|
| Tangible stockholders'
book value per common share |
$ |
22.55 |
|
$ |
21.08 |
|
$ |
20.67 |
|
$ |
20.13 |
|
$ |
20.13 |
|
|
$ |
22.55 |
|
$ |
20.13 |
|
| ____________ |
|
(1) |
The Company sold its Coral Gables headquarters for $135 million,
with an approximate carrying value of $69.9 million at the time of
sale and transaction costs of $2.6 million. The Company leased-back
the property for an 18-year term. The provision for income tax
expense includes around $16.1 million related to this transaction
in the three months and year ended December 31, 2021. |
|
(2) |
The Company leased-back the property for a 2-year term. |
|
(3) |
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, enhanced sales tools and training, expanded product
offerings and improved customer analytics to identify
opportunities. |
|
(4) |
In the second quarter of 2021, includes expenses in connection with
the departure of the Company’s Chief Operating Officer and the
elimination of various other support function positions, including
the NY LPO. In the fourth quarter of 2020, the Board of Directors
of the Company adopted a voluntary early retirement plan for
certain eligible long-term employees and an involuntary severance
plan for certain other positions consistent with the Company’s
effort to streamline operations and better align its operating
structure with its business activities. 31 employees elected to
participate in the voluntary plan, all of whom retired on or before
December 31, 2020. The involuntary plan impacted 31 employees most
of whom no longer worked for the Company and/or its subsidiaries by
December 31, 2020. On December 28, 2020, the Company determined the
termination costs and annual savings related to the voluntary and
involuntary plans. The Company incurred approximately $3.5 million
and $1.8 million in one-time termination costs in the fourth
quarter of 2020 in connection with the voluntary and involuntary
plans, respectively, the majority of which were paid over time in
the form of installment payments until December 2021. The Company
estimates that the voluntary and involuntary plans will yield
estimated annual savings of approximately $4.2 million and $5.5
million, respectively, for combined estimated annual savings of
approximately $9.7 million which began in 2021. |
|
(5) |
Consist of: (i) expenses in connection with the Merger and related
transactions, and (ii) $0.5 million, $0.2 million, and $0.7
million, in the three months ended December 31, 2021, September 30,
2021, and in the year ended December 31, 2021, respectively,
related to the new agreement with FIS. |
|
(6) |
Expenses related to the lease termination of a branch in Fort
Lauderdale, Florida in 2021, and the closures of one branch in Fort
Lauderdale, Florida and another branch in Houston, Texas in
2020. |
|
(7) |
In 2021 and 2020, and in the three months ended March 31, 2021,
amounts were calculated based upon the effective tax rate for the
periods of 23.41%, 60.27% and 20.15%, respectively. For all of the
other periods shown, amounts represent the difference between the
prior and current period year-to-date tax effect. |
|
(8) |
In the three months ended December 31, 2021, September 30, 2021 and
June 30, 2021 and in the year ended December 31, 2021, potential
dilutive instruments consisted of unvested shares of restricted
stock, restricted stock units and performance share units
(restricted stock and restricted stock units for all of the other
periods shown). For the year ended December 31, 2020, potential
dilutive instruments were not included in the diluted earnings per
share computation because the Company reported a net loss and their
inclusion would have an antidilutive effect. 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. |
|
(9) |
Other intangible assets consist of, among other things, mortgage
servicing rights of $0.6 million, $0.6 million and $0.5 million at
December 31, 2021, September 30, 2021 and June 30 2021,
respectively, and are included in other assets in the Company’s
consolidated balance sheets. |
| |
|
Exhibit 3 - Average Balance Sheet,
Interest and Yield/Rate Analysis
The following tables present average balance sheet information,
interest income, interest expense and the corresponding average
yields earned and rates paid for the periods presented. The average
balances for loans include both performing and nonperforming
balances. Interest income on loans includes the effects of discount
accretion and the amortization of non-refundable loan origination
fees, net of direct loan origination costs, accounted for as yield
adjustments. Average balances represent the daily average balances
for the periods presented.
| |
Three Months Ended |
| |
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
Average Balances |
Income/ Expense |
Yield/ Rates |
|
Average Balances |
Income/Expense |
Yield/ Rates |
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio, net (1)(2) |
$ |
5,475,207 |
|
$ |
56,521 |
|
4.10 |
% |
|
$ |
5,379,461 |
|
$ |
53,193 |
|
3.92 |
% |
|
$ |
5,809,246 |
|
$ |
54,891 |
|
3.76 |
% |
| Debt securities available for
sale (3) |
|
1,171,691 |
|
|
7,010 |
|
2.37 |
% |
|
|
1,221,569 |
|
|
7,055 |
|
2.29 |
% |
|
|
1,274,493 |
|
|
7,126 |
|
2.22 |
% |
| Debt securities held to
maturity (4) |
|
121,842 |
|
|
745 |
|
2.43 |
% |
|
|
102,574 |
|
|
508 |
|
1.96 |
% |
|
|
60,084 |
|
|
311 |
|
2.06 |
% |
| Debt securities held for
trading |
|
143 |
|
|
1 |
|
2.77 |
% |
|
|
153 |
|
|
1 |
|
2.59 |
% |
|
|
— |
|
|
— |
|
— |
% |
| Equity securities with readily
determinable fair value not held for trading |
|
17,138 |
|
|
59 |
|
1.37 |
% |
|
|
24,017 |
|
|
66 |
|
1.09 |
% |
|
|
24,354 |
|
|
96 |
|
1.57 |
% |
| Federal Reserve Bank and FHLB
stock |
|
49,591 |
|
|
535 |
|
4.28 |
% |
|
|
47,682 |
|
|
514 |
|
4.28 |
% |
|
|
65,426 |
|
|
677 |
|
4.12 |
% |
| Deposits with banks |
|
155,479 |
|
|
58 |
|
0.15 |
% |
|
|
207,504 |
|
|
76 |
|
0.15 |
% |
|
|
195,347 |
|
|
54 |
|
0.11 |
% |
| Total interest-earning
assets |
|
6,991,091 |
|
|
64,929 |
|
3.68 |
% |
|
|
6,982,960 |
|
|
61,413 |
|
3.49 |
% |
|
|
7,428,950 |
|
|
63,155 |
|
3.38 |
% |
| Total
non-interest-earning assets less allowance for loan
losses |
|
537,549 |
|
|
|
|
|
553,505 |
|
|
|
|
|
516,346 |
|
|
|
| Total assets |
$ |
7,528,640 |
|
|
|
|
$ |
7,536,465 |
|
|
|
|
$ |
7,945,296 |
|
|
|
| |
Three Months Ended |
| |
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
Average Balances |
Income/ Expense |
Yield/ Rates |
|
Average Balances |
Income/Expense |
Yield/ Rates |
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Checking and saving accounts
- |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing DDA |
$ |
1,342,416 |
|
$ |
208 |
|
0.06 |
% |
|
$ |
1,290,944 |
|
$ |
147 |
|
0.05 |
% |
|
$ |
1,218,536 |
|
$ |
103 |
|
0.03 |
% |
|
Money market |
|
1,337,529 |
|
|
788 |
|
0.23 |
% |
|
|
1,359,774 |
|
|
798 |
|
0.23 |
% |
|
|
1,257,239 |
|
|
1,001 |
|
0.32 |
% |
|
Savings |
|
327,090 |
|
|
11 |
|
0.01 |
% |
|
|
329,456 |
|
|
11 |
|
0.01 |
% |
|
|
322,077 |
|
|
14 |
|
0.02 |
% |
| Total checking and saving
accounts |
|
3,007,035 |
|
|
1,007 |
|
0.13 |
% |
|
|
2,980,174 |
|
|
956 |
|
0.13 |
% |
|
|
2,797,852 |
|
|
1,118 |
|
0.16 |
% |
| Time deposits |
|
1,380,337 |
|
|
4,777 |
|
1.37 |
% |
|
|
1,555,001 |
|
|
5,302 |
|
1.35 |
% |
|
|
2,131,085 |
|
|
9,001 |
|
1.68 |
% |
| Total deposits |
|
4,387,372 |
|
|
5,784 |
|
0.52 |
% |
|
|
4,535,175 |
|
|
6,258 |
|
0.55 |
% |
|
|
4,928,937 |
|
|
10,119 |
|
0.82 |
% |
| Securities sold under
agreements to repurchase |
|
55 |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
|
|
533 |
|
|
1 |
|
0.75 |
% |
| Advances from the FHLB and
other borrowings (5) |
|
863,137 |
|
|
1,805 |
|
0.83 |
% |
|
|
808,860 |
|
|
1,777 |
|
0.87 |
% |
|
|
1,060,217 |
|
|
2,826 |
|
1.06 |
% |
| Senior notes |
|
58,855 |
|
|
942 |
|
6.35 |
% |
|
|
58,776 |
|
|
942 |
|
6.36 |
% |
|
|
58,539 |
|
|
942 |
|
6.40 |
% |
| Junior subordinated
debentures |
|
64,178 |
|
|
618 |
|
3.82 |
% |
|
|
64,178 |
|
|
615 |
|
3.80 |
% |
|
|
64,178 |
|
|
615 |
|
3.81 |
% |
| Total interest-bearing
liabilities |
|
5,373,597 |
|
|
9,149 |
|
0.68 |
% |
|
|
5,466,989 |
|
|
9,592 |
|
0.70 |
% |
|
|
6,112,404 |
|
|
14,503 |
|
0.94 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
1,210,365 |
|
|
|
|
|
1,110,353 |
|
|
|
|
|
902,799 |
|
|
|
| Accounts payable, accrued
liabilities and other liabilities |
|
133,927 |
|
|
|
|
|
152,528 |
|
|
|
|
|
105,160 |
|
|
|
| Total non-interest-bearing
liabilities |
|
1,344,292 |
|
|
|
|
|
1,262,881 |
|
|
|
|
|
1,007,959 |
|
|
|
| Total liabilities |
|
6,717,889 |
|
|
|
|
|
6,729,870 |
|
|
|
|
|
7,120,363 |
|
|
|
| Stockholders’ equity |
|
810,751 |
|
|
|
|
|
806,595 |
|
|
|
|
|
824,933 |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
7,528,640 |
|
|
|
|
$ |
7,536,465 |
|
|
|
|
$ |
7,945,296 |
|
|
|
| Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,617,494 |
|
|
|
|
$ |
1,515,971 |
|
|
|
|
$ |
1,316,546 |
|
|
|
| Net interest
income |
|
$ |
55,780 |
|
|
|
|
$ |
51,821 |
|
|
|
|
$ |
48,652 |
|
|
| Net interest rate spread |
|
|
3.00 |
% |
|
|
|
2.79 |
% |
|
|
|
2.44 |
% |
| Net interest margin (6) |
|
|
3.17 |
% |
|
|
|
2.94 |
% |
|
|
|
2.61 |
% |
| Cost of total deposits
(7) |
|
|
0.41 |
% |
|
|
|
0.44 |
% |
|
|
|
0.69 |
% |
| Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
130.10 |
% |
|
|
|
|
127.73 |
% |
|
|
|
|
121.54 |
% |
|
|
| Average non-performing loans/
Average total loans |
|
1.13 |
% |
|
|
|
|
1.94 |
% |
|
|
|
|
1.55 |
% |
|
|
| |
Year Ended December 31, |
| |
|
2021 |
|
|
|
2020 |
|
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
Average Balances |
Income/ Expense |
Yield/ Rates |
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
Loan portfolio, net (1)(2) |
$ |
5,514,110 |
|
$ |
216,097 |
|
3.92 |
% |
|
$ |
5,716,371 |
|
$ |
220,898 |
|
3.86 |
% |
| Debt securities available for
sale (3) |
|
1,194,505 |
|
|
26,953 |
|
2.26 |
% |
|
|
1,444,213 |
|
|
34,001 |
|
2.35 |
% |
| Debt securities held to
maturity (4) |
|
97,501 |
|
|
2,036 |
|
2.09 |
% |
|
|
66,136 |
|
|
1,343 |
|
2.03 |
% |
| Debt securities held for
trading |
|
165 |
|
|
5 |
|
3.03 |
% |
|
|
— |
|
|
— |
|
— |
% |
| Equity securities with readily
determinable fair value not held for trading |
|
22,332 |
|
|
284 |
|
1.27 |
% |
|
|
24,290 |
|
|
452 |
|
1.86 |
% |
| Federal Reserve Bank and FHLB
stock |
|
53,106 |
|
|
2,222 |
|
4.18 |
% |
|
|
67,840 |
|
|
3,227 |
|
4.76 |
% |
| Deposits with banks |
|
201,950 |
|
|
247 |
|
0.12 |
% |
|
|
202,026 |
|
|
633 |
|
0.31 |
% |
| Total interest-earning
assets |
|
7,083,669 |
|
|
247,844 |
|
3.50 |
% |
|
|
7,520,876 |
|
|
260,554 |
|
3.46 |
% |
| Total non-interest-earning
assets less allowance for loan losses |
|
449,347 |
|
|
|
|
|
510,673 |
|
|
|
| Total assets |
$ |
7,533,016 |
|
|
|
|
$ |
8,031,549 |
|
|
|
| |
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
| Checking and saving accounts
- |
|
|
|
|
|
|
|
|
Interest bearing DDA |
$ |
1,309,699 |
|
$ |
591 |
|
0.05 |
% |
|
$ |
1,154,166 |
|
$ |
439 |
|
0.04 |
% |
|
Money market |
|
1,311,278 |
|
|
3,483 |
|
0.27 |
% |
|
|
1,165,447 |
|
|
7,070 |
|
0.61 |
% |
|
Savings |
|
324,618 |
|
|
50 |
|
0.02 |
% |
|
|
321,766 |
|
|
58 |
|
0.02 |
% |
| Total checking and saving
accounts |
|
2,945,595 |
|
|
4,124 |
|
0.14 |
% |
|
|
2,641,379 |
|
|
7,567 |
|
0.29 |
% |
| Time deposits |
|
1,668,459 |
|
|
23,766 |
|
1.42 |
% |
|
|
2,360,367 |
|
|
45,765 |
|
1.94 |
% |
| Total deposits |
|
4,614,054 |
|
|
27,890 |
|
0.60 |
% |
|
|
5,001,746 |
|
|
53,332 |
|
1.07 |
% |
| Securities sold under
agreements to repurchase |
|
123 |
|
|
1 |
|
0.81 |
% |
|
|
252 |
|
|
1 |
|
0.40 |
% |
| Advances from the FHLB and
other borrowings (5) |
|
822,769 |
|
|
8,595 |
|
1.04 |
% |
|
|
1,116,899 |
|
|
13,168 |
|
1.18 |
% |
| Senior notes |
|
58,737 |
|
|
3,768 |
|
6.42 |
% |
|
|
30,686 |
|
|
1,968 |
|
6.41 |
% |
| Junior subordinated
debentures |
|
64,178 |
|
|
2,449 |
|
3.82 |
% |
|
|
66,402 |
|
|
2,533 |
|
3.81 |
% |
| Total interest-bearing
liabilities |
|
5,559,861 |
|
|
42,703 |
|
0.77 |
% |
|
|
6,215,985 |
|
|
71,002 |
|
1.14 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
1,046,766 |
|
|
|
|
|
876,393 |
|
|
|
| Accounts payable, accrued
liabilities and other liabilities |
|
130,548 |
|
|
|
|
|
100,932 |
|
|
|
| Total non-interest-bearing
liabilities |
|
1,177,314 |
|
|
|
|
|
977,325 |
|
|
|
| Total liabilities |
|
6,737,175 |
|
|
|
|
|
7,193,310 |
|
|
|
| Stockholders’ equity |
|
795,841 |
|
|
|
|
|
838,239 |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
7,533,016 |
|
|
|
|
$ |
8,031,549 |
|
|
|
| Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,523,808 |
|
|
|
|
$ |
1,304,891 |
|
|
|
| Net interest
income |
|
$ |
205,141 |
|
|
|
|
$ |
189,552 |
|
|
| Net interest rate spread |
|
|
2.73 |
% |
|
|
|
2.32 |
% |
| Net interest margin (6) |
|
|
2.90 |
% |
|
|
|
2.52 |
% |
| Cost of total deposits
(7) |
|
|
0.49 |
% |
|
|
|
0.91 |
% |
| Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
127.41 |
% |
|
|
|
|
120.99 |
% |
|
|
| Average non-performing loans/
Average total loans |
|
1.61 |
% |
|
|
|
|
1.12 |
% |
|
|
| _______________ |
|
(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 $82.1 million, $100.7 million, and
$115.4 million in the three months ended December 31, 2021,
September 30, 2021 and December 31, 2020, respectively, and $101.1
million and $91.5 million in the years ended December 31, 2021 and
2020, respectively. The average balance of total loans held for
sale was $206.8 million, $81.2 million, and $52 thousand in the
three months ended December 31, 2021, September 30, 2021 and
December 31, 2020, respectively, and $72.7 million and $37 thousand
in the years ended December 31, 2021 and 2020, respectively. |
|
(2) |
Includes average non-performing loans of $63.0 million, $106.5
million and $91.7 million for the three months ended December 31,
2021, September 30, 2021 and December 31, 2020, respectively, and
$90.6 million and $64.8 million for the years ended December 31,
2021 and 2020, respectively. Interest income that would have been
recognized on these non-performing loans totaled $2.2 million, $2.3
million and $0.7 million, in the three months ended December 31,
2021, September 30, 2021 and December 31, 2020, respectively, and
$6.2 million and $2.7 million in the years ended December 31, 2021
and 2020, respectively. |
|
(3) |
Includes nontaxable securities with average balances of $17.7
million, $19.5 million and $75.8 million for the three months ended
December 31, 2021, September 30, 2021 and December 31, 2020,
respectively, and $46.2 million and $72.2 million in the year ended
December 31, 2021 and 2020, respectively. The tax equivalent yield
for these nontaxable securities was 1.79%, 1.51% and 0.37% for the
three months ended December 31, 2021, September 30, 2021 and
December 31, 2020, respectively, and 1.76% and 2.94% for the years
ended December 31, 2021 and 2020, respectively. In 2021 and 2020,
the tax equivalent yields were calculated by assuming a 21% tax
rate and dividing the actual yield by 0.79. |
|
(4) |
Includes nontaxable securities with average balances of $96.4
million, $65.1 million and $60.1 million for the three months ended
December 31, 2021, September 30, 2021 and December 31, 2020,
respectively, and $67.7 million and $66.1 million in the years
ended December 31, 2021 and 2020, respectively. The tax equivalent
yield for these nontaxable securities was 3.20%, 2.37% and 2.61%
for the three months ended December 31, 2021, September 30, 2021
and December 31, 2020, respectively, and 2.37% and 2.57% for the
years ended December 31, 2021 and 2020, respectively. In 2021 and
2020, the tax equivalent yields were calculated assuming a 21% tax
rate and dividing the actual yield by 0.79. |
|
(5) |
The terms of the FHLB advance agreements require the Bank to
maintain certain investment securities or loans as collateral for
these advances. |
|
(6) |
NIM is defined as net interest income divided by average
interest-earning assets, which are loans, securities, deposits with
banks and other financial assets which yield interest or similar
income. |
|
(7) |
Calculated based upon the average balance of total noninterest
bearing and interest bearing deposits. |
| |
|
Exhibit 4 - Noninterest
Income
This table shows
the amounts of each of the categories of noninterest income for the
periods presented.
| |
Three Months Ended |
|
Year Ended December 31, |
| |
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
|
2021 |
|
|
|
2020 |
|
| (in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
| |
|
|
|
|
|
|
|
|
Deposits and service fees |
$ |
4,521 |
|
5.9 |
% |
|
$ |
4,303 |
|
32.0 |
% |
|
$ |
4,173 |
36.2 |
% |
|
$ |
17,214 |
|
14.3 |
% |
|
$ |
15,838 |
|
21.6 |
% |
| Brokerage, advisory and
fiduciary activities |
|
4,987 |
|
6.5 |
% |
|
|
4,595 |
|
34.2 |
% |
|
|
4,219 |
36.6 |
% |
|
|
18,616 |
|
15.4 |
% |
|
|
16,949 |
|
23.1 |
% |
| Change in cash surrender value
of bank owned life insurance (“BOLI”)(1) |
|
1,366 |
|
1.8 |
% |
|
|
1,369 |
|
10.2 |
% |
|
|
1,417 |
12.3 |
% |
|
|
5,459 |
|
4.5 |
% |
|
|
5,695 |
|
7.8 |
% |
| Cards and trade finance
servicing fees |
|
503 |
|
0.7 |
% |
|
|
541 |
|
4.0 |
% |
|
|
333 |
2.9 |
% |
|
|
1,771 |
|
1.5 |
% |
|
|
1,346 |
|
1.8 |
% |
| Loss on early extinguishment
of FHLB advances, net |
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
— |
— |
% |
|
|
(2,488 |
) |
(2.1)% |
|
|
(73 |
) |
(0.1)% |
| Gain on sale of Headquarters
Building (2) |
|
62,387 |
|
80.7 |
% |
|
|
— |
|
— |
% |
|
|
— |
— |
% |
|
|
62,387 |
|
51.7 |
% |
|
|
— |
|
— |
% |
| Securities (losses) gains, net
(3) |
|
(117 |
) |
(0.2)% |
|
|
(54 |
) |
(0.4)% |
|
|
1,033 |
9.0 |
% |
|
|
3,740 |
|
3.1 |
% |
|
|
26,990 |
|
36.7 |
% |
| Other noninterest income
(4) |
|
3,643 |
|
4.6 |
% |
|
|
2,680 |
|
20.0 |
% |
|
|
340 |
3.0 |
% |
|
|
13,922 |
|
11.5 |
% |
|
|
6,725 |
|
9.1 |
% |
|
Total noninterest income |
$ |
77,290 |
|
100.0 |
% |
|
$ |
13,434 |
|
100.0 |
% |
|
$ |
11,515 |
100.0 |
% |
|
$ |
120,621 |
|
99.9 |
% |
|
$ |
73,470 |
|
100.0 |
% |
| __________________ |
|
(1) |
Changes in cash surrender value of BOLI are not taxable. |
|
(2) |
The Company sold its Coral Gables headquarters for $135 million,
with an approximate carrying value of $69.9 million at the time of
sale and transaction costs of $2.6 million. The Company leased-back
the property for an 18-year term. |
|
(3) |
Includes net gain on sale of debt securities of $37.0 thousand,
$36.0 thousand and $1.1 million during the three months ended
December 31, 2021, September 30, 2021 and December 31, 2020,
respectively. In addition, includes a realized loss of $42 thousand
on the sale of a mutual fund with a fair value of $23.4 million at
the time of the sale, and unrealized losses of $0.1 million
during each of the three months ended December 31, 2021, September
30, 2021 and December 31, 2020, related to the change in market
value of mutual funds. |
|
(4) |
Includes: (i) mortgage banking revenue related to Amerant Mortgage
of $0.9 million, $0.7 million and $1.7 million in the three months
ended December 31, 2021, September 30, 2021, and in the year ended
December 31, 2021, respectively; (ii) income from derivative
transactions with customers of $2.0 million, $0.5 million and $0.7
million in the three months ended December 31, 2021, September 30,
2021 and December 31, 2020, respectively, and $4.0 million and $3.2
million in the years ended December 31, 2021 and 2020,
respectively, and (iii) a gain of $3.8 million on the sale of PPP
loans in the year ended December 31, 2021. Other sources of income
in the periods shown include: rental income, income from foreign
currency exchange transactions with customers, and valuation income
on the investment balances held in the non-qualified deferred
compensation plan. |
| |
|
Exhibit 5 - Noninterest
Expense
This table shows the amounts of each of the categories of
noninterest expense for the periods presented.
| |
Three Months Ended |
|
Year Ended December 31, |
| |
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
|
2021 |
|
|
|
2020 |
|
| (in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
| |
|
|
|
|
|
|
|
|
Salaries and employee benefits (1) |
$ |
31,309 |
56.8 |
% |
|
$ |
29,053 |
60.0 |
% |
|
$ |
32,305 |
62.6 |
% |
|
$ |
117,585 |
59.3 |
% |
|
$ |
111,469 |
62.4 |
% |
| Occupancy and equipment
(2) |
|
5,765 |
10.5 |
% |
|
|
4,769 |
9.9 |
% |
|
|
5,320 |
10.3 |
% |
|
|
20,364 |
10.3 |
% |
|
|
17,624 |
9.9 |
% |
| Professional and other
services fees (3) |
|
7,250 |
13.2 |
% |
|
|
4,184 |
8.6 |
% |
|
|
3,137 |
6.1 |
% |
|
|
19,911 |
10.0 |
% |
|
|
13,459 |
7.5 |
% |
| Telecommunications and data
processing |
|
3,897 |
7.1 |
% |
|
|
3,810 |
7.9 |
% |
|
|
3,082 |
6.0 |
% |
|
|
14,949 |
7.5 |
% |
|
|
12,931 |
7.2 |
% |
| Depreciation and amortization
(4) |
|
1,520 |
2.8 |
% |
|
|
2,091 |
4.3 |
% |
|
|
3,473 |
6.7 |
% |
|
|
7,269 |
3.7 |
% |
|
|
9,385 |
5.3 |
% |
| FDIC assessments and
insurance |
|
1,340 |
2.4 |
% |
|
|
1,626 |
3.4 |
% |
|
|
1,885 |
3.7 |
% |
|
|
6,423 |
3.2 |
% |
|
|
6,141 |
3.4 |
% |
| Other operating expenses
(5) |
|
4,007 |
7.2 |
% |
|
|
2,871 |
5.9 |
% |
|
|
2,427 |
4.7 |
% |
|
|
11,741 |
6.0 |
% |
|
|
7,727 |
4.3 |
% |
|
Total noninterest expense (6) |
$ |
55,088 |
100.0 |
% |
|
$ |
48,404 |
100.0 |
% |
|
$ |
51,629 |
100.0 |
% |
|
$ |
198,242 |
100.0 |
% |
|
$ |
178,736 |
100.0 |
% |
| ___________ |
|
(1) |
Includes severance expense of $0.3 million and $5.3 million, in the
three months ended September 30, 2021 and December 31, 2020,
respectively, and $3.6 million and $6.4 million in the years ended
December 31, 2020 and 2021, respectively. There were no significant
severance expenses in the three months ended December 31, 2021.
Severance expenses in 2021 were mainly in connection with the
departure of the Company’s COO, the elimination of various support
function positions, and other actions. Severance expenses in 2020
were primarily related to the voluntary early retirement plan and
the involuntary severance plan adopted in the fourth quarter of
2020. In addition, includes $1.0 million, $0.8 million and $3.4
million in the three months ended December 31, 2021 and September
30, 2021, and in the year ended December 31, 2021, respectively, in
connection with a Long Term Incentive Compensation Program adopted
in the first quarter of 2021. |
|
(2) |
In the three months ended December 31, 2021 and 2020, includes $0.5
million and $1.1 million, respectively, related to the lease
termination of a branch in Fort Lauderdale, Florida in 2021, and
the closures of one branch in Fort Lauderdale, Florida and another
branch in Houston, Texas in 2020.. In addition, includes $0.8
million of ROU asset impairment associated with the lease in NY
loan production office in the year ended December 31, 2021. |
|
(3) |
In the three months ended December 31, 2021 and September 30, 2021,
and in the year ended December 31, 2021, includes additional
expenses of $1.3 million, $0.4 million, and $1.7 million,
respectively, mainly associated with: (i) the Merger and related
transactions, and (ii) $0.5 million, $0.2 million, and $0.7
million, in the three months ended December 31, 2021, September 30,
2021, and in the year ended December 31, 2021, respectively,
related to the new consulting agreement with FIS. In addition,
other services fees include expenses on derivative contracts in all
the periods shown. |
|
(4) |
Includes: (i) a reduction of around $0.4 million in connection with
the sale of the Company’s headquarters building in the three months
ended December 31, 2021, and (ii) a charge of $1.3 million for the
accelerated amortization of leasehold improvements in connection
with the closure of one of our branches in the three months ended
December 31, 2020. |
|
(5) |
Includes advertising, marketing, 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. |
|
(6) |
Includes $3.3 million and $7.1 million in the three months and the
year ended December 31, 2021, respectively and $2.3 million in the
three months ended September 30, 2021, respectively, related to
Amerant Mortgage, primarily salaries and employee benefits,
mortgage lending costs and professional and other services
fees. |
| |
|
Exhibit 6 - Consolidated Balance
Sheets
| (in thousands, except share
data) |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
| Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
33,668 |
|
|
$ |
27,501 |
|
|
$ |
45,198 |
|
|
$ |
37,744 |
|
$ |
30,179 |
| Interest earning deposits with
banks |
|
240,540 |
|
|
|
138,732 |
|
|
|
126,314 |
|
|
|
195,755 |
|
|
184,207 |
| Cash and cash equivalents |
|
274,208 |
|
|
|
166,233 |
|
|
|
171,512 |
|
|
|
233,499 |
|
|
214,386 |
| Securities |
|
|
|
|
|
|
|
|
|
| Debt securities available for
sale |
|
1,175,319 |
|
|
|
1,220,391 |
|
|
|
1,194,068 |
|
|
|
1,190,201 |
|
|
1,225,083 |
| Debt securities held to
maturity |
|
118,175 |
|
|
|
130,543 |
|
|
|
93,311 |
|
|
|
104,657 |
|
|
58,127 |
| Trading securities |
|
— |
|
|
|
194 |
|
|
|
198 |
|
|
|
— |
|
|
— |
| Equity securities with readily
determinable fair value not held for trading |
|
252 |
|
|
|
23,870 |
|
|
|
23,988 |
|
|
|
23,965 |
|
|
24,342 |
| Federal Reserve Bank and
Federal Home Loan Bank stock |
|
47,495 |
|
|
|
47,740 |
|
|
|
47,675 |
|
|
|
56,469 |
|
|
65,015 |
| Securities |
|
1,341,241 |
|
|
|
1,422,738 |
|
|
|
1,359,240 |
|
|
|
1,375,292 |
|
|
1,372,567 |
| Loans held for sale, at lower
of cost or fair value |
|
143,195 |
|
|
|
219,083 |
|
|
|
— |
|
|
|
— |
|
|
— |
| Mortgage loans held for sale,
at fair value |
|
14,905 |
|
|
|
5,812 |
|
|
|
1,775 |
|
|
|
1,044 |
|
|
— |
| Loans held for investment,
gross |
|
5,409,440 |
|
|
|
5,254,029 |
|
|
|
5,606,773 |
|
|
|
5,753,794 |
|
|
5,842,337 |
| Less: Allowance for loan
losses |
|
69,899 |
|
|
|
83,442 |
|
|
|
104,185 |
|
|
|
110,940 |
|
|
110,902 |
| Loans held for investment,
net |
|
5,339,541 |
|
|
|
5,170,587 |
|
|
|
5,502,588 |
|
|
|
5,642,854 |
|
|
5,731,435 |
| Bank owned life insurance |
|
223,006 |
|
|
|
221,640 |
|
|
|
220,271 |
|
|
|
218,903 |
|
|
217,547 |
| Premises and equipment, net
(1) |
|
37,860 |
|
|
|
108,885 |
|
|
|
108,708 |
|
|
|
109,071 |
|
|
109,990 |
| Deferred tax assets, net |
|
11,301 |
|
|
|
9,861 |
|
|
|
13,516 |
|
|
|
15,607 |
|
|
11,691 |
| Goodwill |
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
19,506 |
| Accrued interest receivable
and other assets (1)(2) |
|
233,636 |
|
|
|
144,960 |
|
|
|
135,728 |
|
|
|
135,322 |
|
|
93,771 |
| Total assets |
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
|
$ |
7,532,844 |
|
|
$ |
7,751,098 |
|
$ |
7,770,893 |
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
| Demand |
|
|
|
|
|
|
|
|
|
| Noninterest bearing |
$ |
1,183,251 |
|
|
$ |
1,210,154 |
|
|
$ |
1,065,622 |
|
|
$ |
977,595 |
|
$ |
872,151 |
| Interest bearing |
|
1,507,441 |
|
|
|
1,317,938 |
|
|
|
1,293,626 |
|
|
|
1,324,127 |
|
|
1,230,054 |
| Savings and money market |
|
1,602,339 |
|
|
|
1,655,495 |
|
|
|
1,682,619 |
|
|
|
1,494,227 |
|
|
1,587,876 |
| Time |
|
1,337,840 |
|
|
|
1,442,790 |
|
|
|
1,633,041 |
|
|
|
1,882,130 |
|
|
2,041,562 |
| Total deposits |
|
5,630,871 |
|
|
|
5,626,377 |
|
|
|
5,674,908 |
|
|
|
5,678,079 |
|
|
5,731,643 |
| Advances from the Federal Home
Loan Bank |
|
809,577 |
|
|
|
809,095 |
|
|
|
808,614 |
|
|
|
1,050,000 |
|
|
1,050,000 |
| Senior notes |
|
58,894 |
|
|
|
58,815 |
|
|
|
58,736 |
|
|
|
58,656 |
|
|
58,577 |
| Junior subordinated debentures
held by trust subsidiaries |
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
64,178 |
| Accounts payable, accrued
liabilities and other liabilities (1) |
|
243,006 |
|
|
|
118,178 |
|
|
|
127,340 |
|
|
|
115,171 |
|
|
83,074 |
| Total liabilities |
|
6,806,526 |
|
|
|
6,676,643 |
|
|
|
6,733,776 |
|
|
|
6,966,084 |
|
|
6,987,472 |
| |
|
|
|
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
|
|
|
|
|
| Class A common stock |
|
3,589 |
|
|
|
2,903 |
|
|
|
2,904 |
|
|
|
2,904 |
|
|
2,882 |
| Class B common stock |
|
— |
|
|
|
847 |
|
|
|
853 |
|
|
|
892 |
|
|
904 |
| Additional paid in
capital |
|
262,510 |
|
|
|
299,273 |
|
|
|
299,547 |
|
|
|
304,448 |
|
|
305,569 |
| Retained earnings |
|
553,167 |
|
|
|
489,854 |
|
|
|
472,823 |
|
|
|
456,861 |
|
|
442,402 |
| Accumulated other
comprehensive income |
|
15,217 |
|
|
|
21,236 |
|
|
|
23,758 |
|
|
|
19,909 |
|
|
31,664 |
| Total stockholders' equity
before noncontrolling interest |
|
834,483 |
|
|
|
814,113 |
|
|
|
799,885 |
|
|
|
785,014 |
|
|
783,421 |
| Noncontrolling interest |
|
(2,610 |
) |
|
|
(1,451 |
) |
|
|
(817 |
) |
|
|
— |
|
|
— |
| Total stockholders'
equity |
|
831,873 |
|
|
|
812,662 |
|
|
|
799,068 |
|
|
|
785,014 |
|
|
783,421 |
| Total liabilities and
stockholders' equity |
$ |
7,638,399 |
|
|
$ |
7,489,305 |
|
|
$ |
7,532,844 |
|
|
$ |
7,751,098 |
|
$ |
7,770,893 |
| |
|
|
|
|
|
|
|
|
|
| __________ |
|
(1) |
As of December 31, 2021, includes the effect of the sale and lease
back of the Company’s headquarters building in the fourth quarter
of 2021. |
|
(2) |
As of December 31, 2021, September 30, 2021, June 30, 2021 and
March 31, 2021, includes the effect of adopting ASU 2016-02
(Leases) in the first quarter of 2021. |
| |
|
Exhibit 7 - LoansLoans
by Type - Held For Investment
The loan portfolio held for investment consists of the following
loan classes:
| (in thousands) |
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December 31,2020 |
| Real estate loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
1,540,590 |
|
$ |
1,593,664 |
|
$ |
1,699,876 |
|
$ |
1,713,967 |
|
$ |
1,749,839 |
| Multi-family residential |
|
514,679 |
|
|
504,337 |
|
|
658,022 |
|
|
722,783 |
|
|
737,696 |
| Land development and
construction loans |
|
327,246 |
|
|
318,449 |
|
|
361,077 |
|
|
351,502 |
|
|
349,800 |
| |
|
2,382,515 |
|
|
2,416,450 |
|
|
2,718,975 |
|
|
2,788,252 |
|
|
2,837,335 |
| Single-family residential |
|
661,339 |
|
|
618,139 |
|
|
616,545 |
|
|
625,298 |
|
|
639,569 |
| Owner occupied |
|
962,538 |
|
|
936,590 |
|
|
943,342 |
|
|
940,126 |
|
|
947,127 |
| |
|
4,006,392 |
|
|
3,971,179 |
|
|
4,278,862 |
|
|
4,353,676 |
|
|
4,424,031 |
| Commercial loans |
|
965,673 |
|
|
910,696 |
|
|
1,003,411 |
|
|
1,104,594 |
|
|
1,154,550 |
| Loans to financial
institutions and acceptances |
|
13,710 |
|
|
13,690 |
|
|
13,672 |
|
|
16,658 |
|
|
16,636 |
| Consumer loans and
overdrafts |
|
423,665 |
|
|
358,464 |
|
|
310,828 |
|
|
278,866 |
|
|
247,120 |
| Total loans |
$ |
5,409,440 |
|
$ |
5,254,029 |
|
$ |
5,606,773 |
|
$ |
5,753,794 |
|
$ |
5,842,337 |
Loans by Type - Held For Sale
The loan portfolio held for sale consists of the following loan
classes:
| (in thousands) |
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December 31,2020 |
| Real estate loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
110,271 |
|
$ |
160,034 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
| Multi-family residential |
|
31,606 |
|
|
57,725 |
|
|
— |
|
|
— |
|
|
— |
| |
|
141,877 |
|
|
217,759 |
|
|
— |
|
|
— |
|
|
— |
| Single-family residential
(1) |
|
14,905 |
|
|
5,812 |
|
|
1,775 |
|
|
1,044 |
|
|
— |
| Owner occupied |
|
1,318 |
|
|
1,324 |
|
|
— |
|
|
— |
|
|
— |
|
Total loans held for sale (2)(3) |
$ |
158,100 |
|
$ |
224,895 |
|
$ |
1,775 |
|
$ |
1,044 |
|
$ |
— |
| __________________ |
|
(1) |
Loans held for sale in connection with Amerant Mortgage ongoing
business. |
|
(2) |
At December 31, 2021, September 30, 2021 and March 31, 2021, total
loans include $143.2 million, $219.1 million and $1.0 million,
respectively, in loans held for sale carried at the lower of cost
or estimated fair value. During the three months ended December 31,
2021, the Company sold $49.4 million in loans held for sale carried
at the lower of cost or estimated fair value related to the NY
portfolio. In addition, as of December 31, 2021, September 30, 2021
and June 30, 2021, total loans include $14.9 million, $5.8 million
and $1.8 million, respectively, in mortgage loans held for sale
carried at fair value. |
|
(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) |
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December 31,2020 |
| Non-Accrual
Loans(1) |
|
|
|
|
|
|
|
|
|
| Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
7,285 |
|
$ |
28,507 |
|
$ |
48,347 |
|
$ |
8,515 |
|
$ |
8,219 |
|
Multi-family residential |
|
— |
|
|
— |
|
|
9,928 |
|
|
11,369 |
|
|
11,340 |
| |
|
7,285 |
|
|
28,507 |
|
|
58,275 |
|
|
19,884 |
|
|
19,559 |
|
Single-family residential |
|
5,126 |
|
|
6,344 |
|
|
7,174 |
|
|
10,814 |
|
|
10,667 |
|
Owner occupied |
|
8,665 |
|
|
11,040 |
|
|
11,277 |
|
|
12,527 |
|
|
12,815 |
| |
|
21,076 |
|
|
45,891 |
|
|
76,726 |
|
|
43,225 |
|
|
43,041 |
| Commercial loans (2) |
|
28,440 |
|
|
36,500 |
|
|
43,876 |
|
|
45,282 |
|
|
44,205 |
| Consumer loans and
overdrafts |
|
257 |
|
|
353 |
|
|
198 |
|
|
270 |
|
|
233 |
| Total Non-Accrual
Loans |
$ |
49,773 |
|
$ |
82,744 |
|
$ |
120,800 |
|
$ |
88,777 |
|
$ |
87,479 |
| |
|
|
|
|
|
|
|
|
|
| Past Due Accruing
Loans(3) |
|
|
|
|
|
|
|
|
|
| Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
743 |
|
$ |
— |
|
Single-family residential |
|
— |
|
|
4 |
|
|
20 |
|
|
— |
|
|
— |
|
Owner occupied |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
220 |
| Commercial |
|
— |
|
|
— |
|
|
295 |
|
|
— |
|
|
— |
| Consumer loans and
overdrafts |
|
8 |
|
|
1 |
|
|
4 |
|
|
3 |
|
|
1 |
| Total Past Due
Accruing Loans |
|
8 |
|
|
5 |
|
|
319 |
|
|
746 |
|
|
221 |
| Total Non-Performing
Loans |
|
49,781 |
|
|
82,749 |
|
|
121,119 |
|
|
89,523 |
|
|
87,700 |
| Other Real Estate
Owned |
|
9,720 |
|
|
9,800 |
|
|
400 |
|
|
400 |
|
|
427 |
| Total Non-Performing
Assets |
$ |
59,501 |
|
$ |
92,549 |
|
$ |
121,519 |
|
$ |
89,923 |
|
$ |
88,127 |
| __________________ |
|
(1) |
Includes loan modifications that met the definition of TDRs which
may be performing in accordance with their modified loan terms. As
of December 31, 2021, September 30, 2021, June 30, 2021, March 31,
2021 and December 31, 2020, non-performing TDRs include $9.1
million, $9.3 million, $9.6 million, $9.8 million and $8.4 million,
respectively, in a multiple loan relationship to a South Florida
borrower. |
|
(2) |
As of December 31, 2021 and September 30, 2021, includes $9.1
million and $13.9 million, respectively in a commercial
relationship placed in nonaccrual status during the second quarter
of 2020 ($19.6 million at each of the other periods shown). During
the third quarters of 2021 and 2020, the Company charged off $5.7
million and $19.3 million, respectively, against the allowance for
loan losses as result of the deterioration of this commercial
relationship. In addition, in connection with this loan
relationship, the Company collected a partial principal payment of
$4.8 million in the fourth quarter of 2021. |
|
(3) |
Loans past due 90 days or more but still accruing. |
|
|
|
Loans by Credit Quality Indicators
This table shows the Company’s loans by credit quality
indicators. We have no purchased credit-impaired loans.
| |
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
| (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 |
$ |
34,205 |
$ |
5,890 |
$ |
1,395 |
$ |
41,490 |
|
$ |
31,269 |
$ |
25,332 |
$ |
3,175 |
$ |
59,776 |
|
$ |
46,872 |
$ |
4,994 |
$ |
3,969 |
$ |
55,835 |
| Multi-family residential |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
11,340 |
|
— |
|
11,340 |
| Land development
and
construction
loans |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
7,164 |
|
— |
|
— |
|
7,164 |
| |
|
34,205 |
|
5,890 |
|
1,395 |
|
41,490 |
|
|
31,269 |
|
25,332 |
|
3,175 |
|
59,776 |
|
|
54,036 |
|
16,334 |
|
3,969 |
|
74,339 |
| Single-family residential |
|
— |
|
5,221 |
|
— |
|
5,221 |
|
|
— |
|
6,368 |
|
— |
|
6,368 |
|
|
— |
|
10,667 |
|
— |
|
10,667 |
| Owner occupied |
|
7,429 |
|
8,759 |
|
— |
|
16,188 |
|
|
7,473 |
|
11,136 |
|
— |
|
18,609 |
|
|
22,343 |
|
12,917 |
|
— |
|
35,260 |
| |
|
41,634 |
|
19,870 |
|
1,395 |
|
62,899 |
|
|
38,742 |
|
42,836 |
|
3,175 |
|
84,753 |
|
|
76,379 |
|
39,918 |
|
3,969 |
|
120,266 |
| Commercial loans (2) |
|
32,452 |
|
20,324 |
|
9,497 |
|
62,273 |
|
|
38,522 |
|
22,471 |
|
15,404 |
|
76,397 |
|
|
42,434 |
|
21,152 |
|
23,256 |
|
86,842 |
| Consumer loans and
overdrafts |
|
— |
|
270 |
|
— |
|
270 |
|
|
— |
|
356 |
|
— |
|
356 |
|
|
— |
|
238 |
|
— |
|
238 |
| |
$ |
74,086 |
$ |
40,464 |
$ |
10,892 |
$ |
125,442 |
|
$ |
77,264 |
$ |
65,663 |
$ |
18,579 |
$ |
161,506 |
|
$ |
118,813 |
$ |
61,308 |
$ |
27,225 |
$ |
207,346 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| __________ |
|
(1) |
There were no loans categorized as “Loss” as of the dates
presented. |
|
(2) |
Loan balances as of December 31, 2021 and September 30, 2021
include $9.1 million and $13.9 million, respectively, in a
commercial relationship placed in nonaccrual status and downgraded
during the second quarter of 2020 ($19.6 million at December 31,
2020). As of December 31, 2021 and September 30, 2021, Substandard
loans include $4.9 million and $7.3 million, respectively and
doubtful loans include $4.2 million and $6.6 million, respectively,
related to this commercial relationship (Substandard loans include
$7.3 million and doubtful loans include $12.3 million at December
31, 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. |
| |
|
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) |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
| |
|
|
Domestic |
$ |
3,137,258 |
|
$ |
3,090,563 |
|
$ |
3,140,541 |
|
$ |
3,175,522 |
|
$ |
3,202,936 |
| Foreign: |
|
|
|
|
|
|
|
|
|
|
Venezuela |
|
2,019,480 |
|
|
2,054,149 |
|
|
2,075,658 |
|
|
2,088,519 |
|
|
2,119,412 |
|
Others |
|
474,133 |
|
|
481,665 |
|
|
458,709 |
|
|
414,038 |
|
|
409,295 |
| Total foreign |
|
2,493,613 |
|
|
2,535,814 |
|
|
2,534,367 |
|
|
2,502,557 |
|
|
2,528,707 |
| Total deposits |
$ |
5,630,871 |
|
$ |
5,626,377 |
|
$ |
5,674,908 |
|
$ |
5,678,079 |
|
$ |
5,731,643 |
| |
|
|
| |
|
CONTACTS: |
| |
|
Investors |
| |
|
Laura Rossi |
| |
|
InvestorRelations@amerantbank.com |
| |
|
(305) 460-8728 |
| |
|
|
| |
|
Media |
| |
|
Silvia M. Larrieu |
| |
|
MediaRelations@amerantbank.com |
| |
|
(305) 441-8414 |
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