Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”)
today reported net income attributable to the Company of $18.8
million in the fourth quarter of 2022 , or $0.55 per diluted share.
Results in the fourth quarter reflect a provision for credit losses
of $20.9 million, including the retroactive effect of the Current
Expected Credit Loss (“CECL”) accounting standard for all previous
quarterly periods in the year ended December 31, 2022 for an amount
of approximately $11.1 million1. Net income attributable to the
Company was $63.3 million for the full-year 2022, or $1.85 per
diluted share.
Selected Financial
Highlights:
- Total assets were $9.1 billion, up
$387.8 million, or 4.44%, compared to $8.7 billion as of 3Q22 and
up $1.5 billion, or 19.5%, compared to $7.6 billion as of
4Q21.
- Total gross loans were $6.92
billion, an increase of $416.3 million, or 6.40%, compared to $6.50
billion in 3Q22 and an increase of $1.35 billion, or 24.3%,
compared to $5.57 billion in 4Q21.
- Total deposits were $7.04 billion,
up $456.1 million, or 6.92%, compared to $6.59 billion in 3Q22 and
up $1.41 billion, or 25.1%, compared to $5.63 billion in 4Q21.
Amerant Chairman and CEO Jerry Plush stated “We
are pleased to again report strong asset, deposit and revenue
growth this quarter. Our team delivered, building on the upward
momentum we have shown throughout 2022.”
Adoption of the CECL Accounting
Standard
In the fourth quarter of 2022, the Company
adopted the CECL accounting standard for estimating allowance for
credit losses. The adoption of CECL as of December 31, 2022,
resulted in an increase to the allowance for credit losses of $18.7
million, with a corresponding after tax cumulative effect
adjustment to retained earnings of $13.9 million as of January 1,
2022, as required by the standard. In addition, in the fourth
quarter of 2022, the Company recorded a provision for credit losses
totaling $20.9 million, which includes the retroactive effect of
CECL adoption for all previous quarterly periods in the year ended
December 31, 2022 for an amount of approximately $11.1 million1,
including loan growth and changes to macro-economic conditions
during the year 2022. Quarterly amounts for the first, second and
third quarters of 2022 do not reflect the adoption of CECL. The
Company will provide an update to its interim consolidated
financial information for each of the quarters in 2022 in its
Annual Report on Form 10-K for the year ended December 31, 2022,
reflecting the impacts of the adoption of CECL on each interim
period of 2022.
Under the CECL accounting standard, the model
for estimating credit losses on financial assets, including loans
held for investment, changes from an incurred loss model to an
expected loss model. The allowance for credit losses under the
expected loss model is an estimate of life-of-loan losses for the
Company’s loans held for investment.
Financial Highlights
Continued:
- Average yield on loans was 5.85%,
up compared to 5.06% and 4.10% in 3Q22 and 4Q21, respectively.
Average yield on loans for the full-year 2022 was 4.92%, also up
compared to 3.92% for the full-year 2021.
- Non-performing loans were $37.6
million, an increase of $18.9 million, or 100.6%, compared to $18.7
million as of 3Q22 and a decrease of $12.2 million, or 24.5%,
compared to $49.8 million as of 4Q21. The increase resulted from a
single commercial loan that is expected to become real estate owned
without additional charges in 1Q23.
- The allowance for credit losses
("ACL") was $83.5 million, an increase of $29.8 million, or 55.5%,
compared to $53.7 million as of 3Q22 and an increase of $13.6
million, or 19.5%, compared to $69.9 million in 4Q21. The increase
to the ACL was primarily driven by the adoption of CECL as of
December 31, 2022. Quarterly amounts for third quarter of 2022 do
not reflect the adoption of CECL.
- Core deposits were $5.32 billion,
up $114.3 million, or 2.2%, compared to $5.20 billion as of 3Q22
and up $1.0 billion, or 23.8%, compared to $4.29 billion as of
4Q21.
- Average cost of total deposits was
1.38%, an increase compared to 0.83% in 3Q22 and 0.41% in 4Q21.
Average cost of total deposits for the full-year 2022 was 0.80%,
also an increase compared to 0.49% for the full-year 2021.
- Loan to deposit ratio was 98.23%
compared to 98.71% and 98.88% in 3Q22 and 4Q21, respectively.
- Assets Under Management and custody
(“AUM”) totaled $2.00 billion as of 4Q22, an increase of $0.2
billion, or 10.2%, compared to $1.81 billion as of 3Q22 and a
decrease of $0.2 billion, or 10.1%, compared to $2.22 billion in
4Q21.
- Pre-provision net revenue (“PPNR”)2
was $44.5 million in 4Q22, an increase of $14.7 million, or 49.3%,
compared to $29.8 million in 3Q22, and a decrease of $34.7 million,
or 43.8%, compared to $79.1 million in 4Q21. PPNR2 was $93.9
million for the full-year 2022, a decrease of $36.3 million, or
27.9%, compared to $130.1 million for the full-year 2021. Core
Pre-Provision Net Revenue (“Core PPNR”)2 was $37.8 million, an
increase of $7.5 million, or 24.8%, from $30.3 million in 3Q22 and
an increase of $18.9 million, or 100.1%, from $18.9 million in
4Q21. Core PPNR2 was $105.5 million for the full-year 2022, an
increase of $35.6 million, or 50.9%, compared to $69.9 million for
the full-year 2021.
- Net Interest Margin (“NIM”) was
3.96%, up compared to 3.61% and 3.17% in 3Q22 and 4Q21,
respectively. NIM was 3.53% for the full-year 2022, an increase
compared to 2.90% for the full-year 2021.
- Net Interest Income (“NII”) was
$82.2 million, up $12.3 million, or 17.6%, compared to $69.9
million in 3Q22 and up $26.4 million, or 47.3%, compared to $55.8
million in 4Q21. NII was $266.7 million for the full-year 2022, up
$61.5 million, or 29.99%, compared to $205.1 million for the
full-year 2021.
- Provision for credit losses was
$20.9 million, up compared to $3.0 million in 3Q22, and a release
from the provision of $6.5 million in 4Q21. Provision for credit
losses was $13.9 million for the full-year 2022, compared to a
release of $16.5 million in the full-year 2021. The increase in the
provision for credit losses in 4Q22 includes the retroactive effect
of CECL adoption for all previous quarterly periods in the year
ended December 31, 2022 for an amount of approximately $11.1
million1, including loan growth and changes to macro-economic
conditions during the year 2022. The Company also recorded $9.8
million in provision for credit losses in 4Q22, of which a $2.2
million was for a specific reserve on a commercial loan, and $5.5
million related to consumer loans and a change in the consumer
credit charge-off policy.
- Non-interest income was $24.4
million, an increase of $8.4 million, or 52.7%, compared to $16.0
million in 3Q22 and a decrease of $52.9 million, or 68.48%,
compared to $77.3 million in 4Q21. Non-interest income was $67.3
million for the full-year 2022, a decrease of $53.3 million, or
44.2%, compared to $120.6 million for the full-year 2021.
- Non-interest expense was $62.2
million, up $6.1 million, or 10.9%, compared to $56.1 million in
3Q22 and up $7.2 million, or 13.0%, compared to $55.1 million in
4Q21. Non-interest expense was $241.4 million for the full-year
2022, up $43.2 million or 21.78%, compared to $198.2 million for
the full-year 2021.
- The efficiency ratio was 58.42%,
down compared to 65.36% in 3Q22 and up compared to 41.40% in 4Q21.
The efficiency ratio was 72.29% for the full-year 2022 compared to
60.85% for the full-year 2021.
- Return on average assets (“ROA”)
was 0.83% compared to 1.00% and 3.45% in 3Q22 and 4Q21,
respectively. ROA was 0.77% for the full-year 2022 compared to
1.50% for the full-year 2021.
- Return on average equity (“ROE”)
was 10.33% compared to 11.28% and 32.04% in 3Q22 and 4Q21,
respectively. ROE was 8.45% for the full-year 2022 compared to
14.19% for the full-year 2021.
On January 18, 2023, the Company’s Board of
Directors declared a cash dividend of $0.09 per common share. The
dividend is payable on February 28, 2023, to shareholders of record
on February 13, 2023.
1 The provision for credit losses in the fourth
quarter under CECL, excluding the retroactive effect corresponding
to the first, second and third quarters of 2022, is approximately
$7.0 million dollars, which results in net income attributable to
the Company of $22.0 million in the fourth quarter of 2022, or
$0.65 per diluted share.
2 Non-GAAP measure, see “Non-GAAP Financial
Measures” for more information and Exhibit 2 for a reconciliation
to GAAP.
Fourth Quarter and Full Year 2022
Earnings Conference Call
As previously announced, the Company will hold
an earnings conference call on Friday, January 20, 2023 at 9:00
a.m. (Eastern Time) to discuss its fourth quarter and full-year
2022 results. The conference call and presentation materials can be
accessed via webcast by logging on from the Investor Relations
section of the Company’s website at
https://investor.amerantbank.com. The online replay will remain
available for approximately one month following the call through
the above link.
About Amerant Bancorp Inc. (NASDAQ:
AMTB)
Amerant Bancorp Inc. is a bank holding company
headquartered in Coral Gables, Florida since 1979. The Company
operates through its main subsidiary, Amerant Bank, N.A. (the
“Bank”), as well as its other subsidiaries: Amerant Investments,
Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The
Company provides individuals and businesses in the U.S. with
deposit, credit and wealth management services. The Bank, which has
operated for over 40 years, is the largest community bank
headquartered in Florida. The Bank operates 23 banking centers – 16
in South Florida and 7 in the Houston, Texas area, as well as an
LPO in Tampa, Florida. For more information, visit
investor.amerantbank.com.
FIS® and any associated brand names/logos are
the trademarks of FIS and/or its affiliates.
Cautionary Notice Regarding
Forward-Looking Statements
This press release contains “forward-looking
statements” including statements with respect to the Company’s
objectives, expectations and intentions and other statements that
are not historical facts. All statements other than statements of
historical fact are statements that could be forward-looking
statements. You can identify these forward-looking statements
through our use of words such as “may,” “will,” “anticipate,”
“assume,” “should,” “indicate,” “would,” “believe,” “contemplate,”
“expect,” “estimate,” “continue,” “plan,” “point to,” “project,”
“could,” “intend,” “target,” “goals,” “outlooks,” “modeled,”
“dedicated,” “create,” and other similar words and expressions of
the future.
Forward-looking statements, including those
relating to our beliefs, plans, objectives, goals, expectations,
anticipations, estimates and intentions, involve known and unknown
risks, uncertainties and other factors, which may be beyond our
control, and which may cause the Company’s actual results,
performance, achievements, or financial condition to be materially
different from future results, performance, achievements, or
financial condition expressed or implied by such forward-looking
statements. You should not rely on any forward-looking statements
as predictions of future events. You should not expect us to update
any forward-looking statements, except as required by law. All
written or oral forward-looking statements attributable to us are
expressly qualified in their entirety by this cautionary notice,
together with those risks and uncertainties described in “Risk
factors” in our annual report on Form 10-K for the fiscal year
ended December 31, 2021, our quarterly reports on Form 10-Q for the
quarters ended March 31, 2022, June 30, 2022, and September 30,
2022 and in our other filings with the U.S. Securities and Exchange
Commission (the “SEC”), which are available at the SEC’s website
www.sec.gov.
Interim Financial
Information
Unaudited financial information as of and for
interim periods, including the three and twelve month periods ended
December 31, 2022 and the three month period ended December 31,
2021, may not reflect our results of operations for our fiscal year
ended, or financial condition as of December 31, 2022, or any other
period of time or date.
In the fourth quarter of 2022, the Company
adopted the Current Expected Credit Loss (“CECL”) accounting
standard for estimating allowance for credit losses. The adoption
of CECL as of December 31, 2022, resulted in an increase to the
allowance for credit losses of $18.7 million, with a corresponding
after tax cumulative effect adjustment to retained earnings of
$13.9 million as of January 1, 2022, as required by the standard.
In addition, in the fourth quarter of 2022, the Company recorded a
provision for credit losses totaling $20.9 million, which includes
the retroactive effect of CECL adoption for all previous quarterly
periods in the year ended December 31, 2022 for an amount of
approximately $11.1 million, including loan growth and changes to
macro-economic conditions during the year 2022. Quarterly amounts
for the first, second and third quarters of 2022 do not reflect the
adoption of CECL. The Company will provide an update to its interim
consolidated financial information for each of the quarters in 2022
in its Annual Report on Form 10-K for the year ended December 31,
2022, reflecting the impacts of the adoption of CECL on each
interim period of 2022.
Under the CECL accounting standard, the model
for estimating credit losses on financial assets, including loans
held for investment, changes from an incurred loss model to an
expected loss model. The allowance for credit losses under the
expected loss model is an estimate of life-of-loan losses for the
Company’s loans held for investment.
Non-GAAP Financial Measures
The Company supplements its financial results
that are determined in accordance with accounting principles
generally accepted in the United States of America (“GAAP”) with
non-GAAP financial measures, such as “pre-provision net revenue
(PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core
noninterest income”, “core noninterest expenses”, “core net
income”, “core earnings 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 Company’s adoption
of CECL as of December 31, 2022 and for the year then ended, as
well as the additional costs we have incurred in connection with
the Company’s restructuring activities that began in 2018 and
continued in 2022, including the effect of non-core banking
activities such as the sale of loans and securities, the valuation
of securities, derivatives, loans held for sale and other real
estate owned, the sale of our corporate headquarters in the fourth
quarter of 2021, and other non-routine actions intended to improve
customer service and operating performance. While we believe that
these non-GAAP financial measures are useful in
evaluating our performance, this information should be considered
as supplemental and not as a substitute for or superior to the
related financial information prepared in accordance with GAAP.
Additionally, these non-GAAP financial measures may
differ from similar measures presented by other companies.
Exhibit 2 reconciles these non-GAAP financial
measures to reported results.
Exhibit 1- Selected
Financial Information
The following table sets forth selected financial information
derived from our unaudited and audited consolidated financial
statements.
| (in thousands) |
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
| Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
(audited) |
|
Total assets |
$ |
9,127,804 |
|
$ |
8,739,979 |
|
$ |
8,151,242 |
|
$ |
7,805,836 |
|
$ |
7,638,399 |
| Total investments |
|
1,366,680 |
|
|
1,352,782 |
|
|
1,422,479 |
|
|
1,324,969 |
|
|
1,341,241 |
| Total gross loans (1) |
|
6,919,632 |
|
|
6,503,359 |
|
|
5,847,384 |
|
|
5,721,177 |
|
|
5,567,540 |
| Allowance for credit losses
(2) |
|
83,500 |
|
|
53,711 |
|
|
52,027 |
|
|
56,051 |
|
|
69,899 |
| Total deposits |
|
7,044,199 |
|
|
6,588,122 |
|
|
6,202,854 |
|
|
5,691,701 |
|
|
5,630,871 |
| Core deposits (3) |
|
5,315,944 |
|
|
5,201,681 |
|
|
4,948,445 |
|
|
4,443,414 |
|
|
4,293,031 |
| Advances from the FHLB and
other borrowings |
|
906,486 |
|
|
981,005 |
|
|
830,524 |
|
|
980,047 |
|
|
809,577 |
| Senior notes |
|
59,210 |
|
|
59,131 |
|
|
59,052 |
|
|
58,973 |
|
|
58,894 |
| Subordinated notes (4) |
|
29,284 |
|
|
29,241 |
|
|
29,199 |
|
|
29,156 |
|
|
— |
| Junior subordinated
debentures |
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
| Stockholders' equity
(2)(5)(6)(7) |
|
705,726 |
|
|
695,698 |
|
|
711,450 |
|
|
749,396 |
|
|
831,873 |
| Assets under management and
custody (8) |
|
1,995,666 |
|
|
1,811,265 |
|
|
1,868,017 |
|
|
2,129,387 |
|
|
2,221,077 |
| |
Three Months Ended |
|
Years Ended December 31, |
| (in thousands, except
percentages, share data and per share amounts) |
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| Consolidated Results
of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
(audited) |
|
Net interest income |
$ |
82,178 |
|
|
$ |
69,897 |
|
|
$ |
58,945 |
|
|
$ |
55,645 |
|
|
$ |
55,780 |
|
|
$ |
266,665 |
|
|
$ |
205,141 |
|
| Provision for (reversal of)
credit losses (2) |
|
20,945 |
|
|
|
3,000 |
|
|
|
— |
|
|
|
(10,000 |
) |
|
|
(6,500 |
) |
|
|
13,945 |
|
|
|
(16,500 |
) |
| Noninterest income |
|
24,365 |
|
|
|
15,956 |
|
|
|
12,931 |
|
|
|
14,025 |
|
|
|
77,290 |
|
|
|
67,277 |
|
|
|
120,621 |
|
| Noninterest expense |
|
62,241 |
|
|
|
56,113 |
|
|
|
62,241 |
|
|
|
60,818 |
|
|
|
55,088 |
|
|
|
241,413 |
|
|
|
198,242 |
|
| Net income attributable to
Amerant Bancorp Inc. (9) |
|
18,766 |
|
|
|
20,920 |
|
|
|
7,674 |
|
|
|
15,950 |
|
|
|
65,469 |
|
|
|
63,310 |
|
|
|
112,921 |
|
| Effective income tax rate |
|
20.32 |
% |
|
|
21.93 |
% |
|
|
21.10 |
% |
|
|
21.10 |
% |
|
|
23.88 |
% |
|
|
21.15 |
% |
|
|
23.41 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' book value per
common share |
$ |
20.87 |
|
|
$ |
20.60 |
|
|
$ |
21.07 |
|
|
$ |
21.82 |
|
|
$ |
23.18 |
|
|
$ |
20.87 |
|
|
$ |
23.18 |
|
| Tangible stockholders' equity
(book value) per common share (10) |
$ |
20.19 |
|
|
$ |
19.92 |
|
|
$ |
20.40 |
|
|
$ |
21.15 |
|
|
$ |
22.55 |
|
|
$ |
20.19 |
|
|
$ |
22.55 |
|
| Basic earnings per common
share |
$ |
0.56 |
|
|
$ |
0.62 |
|
|
$ |
0.23 |
|
|
$ |
0.46 |
|
|
$ |
1.79 |
|
|
$ |
1.87 |
|
|
$ |
3.04 |
|
| Diluted earnings per common
share (11) |
$ |
0.55 |
|
|
$ |
0.62 |
|
|
$ |
0.23 |
|
|
$ |
0.45 |
|
|
$ |
1.77 |
|
|
$ |
1.85 |
|
|
$ |
3.01 |
|
| Basic weighted average shares
outstanding |
|
33,496,096 |
|
|
|
33,476,418 |
|
|
|
33,675,930 |
|
|
|
34,819,984 |
|
|
|
36,606,969 |
|
|
|
33,862,410 |
|
|
|
37,169,283 |
|
| Diluted weighted average
shares outstanding (11) |
|
33,813,593 |
|
|
|
33,746,878 |
|
|
|
33,914,529 |
|
|
|
35,114,043 |
|
|
|
37,064,769 |
|
|
|
34,142,563 |
|
|
|
37,527,523 |
|
| Cash dividend declared per
common share (7) |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.06 |
|
|
$ |
0.36 |
|
|
$ |
0.06 |
|
| |
Three Months Ended |
|
Years Ended December 31, |
| |
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
2022 |
|
|
2021 |
|
| Other Financial and
Operating Data (12) |
|
|
|
|
|
|
|
|
|
|
|
|
(audited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profitability
Indicators (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / Average total interest earning assets (NIM)
(13) |
3.96 |
% |
|
3.61 |
% |
|
3.28 |
% |
|
3.18 |
% |
|
3.17 |
% |
|
3.53 |
% |
|
2.90 |
% |
| Net income / Average total
assets (ROA) (14) |
0.83 |
% |
|
1.00 |
% |
|
0.39 |
% |
|
0.84 |
% |
|
3.45 |
% |
|
0.77 |
% |
|
1.50 |
% |
| Net income / Average
stockholders' equity (ROE) (15) |
10.33 |
% |
|
11.28 |
% |
|
4.14 |
% |
|
8.10 |
% |
|
32.04 |
% |
|
8.45 |
% |
|
14.19 |
% |
| Noninterest income / Total
revenue (16) |
22.87 |
% |
|
18.59 |
% |
|
17.99 |
% |
|
20.13 |
% |
|
58.08 |
% |
|
20.15 |
% |
|
37.03 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Indicators
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital ratio (17) |
12.39 |
% |
|
12.49 |
% |
|
13.21 |
% |
|
13.80 |
% |
|
14.56 |
% |
|
12.39 |
% |
|
14.56 |
% |
| Tier 1 capital ratio (18) |
10.89 |
% |
|
11.34 |
% |
|
11.99 |
% |
|
12.48 |
% |
|
13.45 |
% |
|
10.89 |
% |
|
13.45 |
% |
| Tier 1 leverage ratio
(19) |
9.18 |
% |
|
9.88 |
% |
|
10.25 |
% |
|
10.67 |
% |
|
11.52 |
% |
|
9.18 |
% |
|
11.52 |
% |
| Common equity tier 1 capital
ratio (CET1) (20) |
10.10 |
% |
|
10.50 |
% |
|
11.08 |
% |
|
11.55 |
% |
|
12.50 |
% |
|
10.10 |
% |
|
12.50 |
% |
| Tangible common equity ratio
(21) |
7.50 |
% |
|
7.72 |
% |
|
8.47 |
% |
|
9.34 |
% |
|
10.63 |
% |
|
7.50 |
% |
|
10.63 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liquidity Ratios
(%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans to Deposits (22) |
98.23 |
% |
|
98.71 |
% |
|
94.27 |
% |
|
100.52 |
% |
|
98.88 |
% |
|
98.23 |
% |
|
98.88 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality
Indicators (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing assets / Total
assets (23) |
0.41 |
% |
|
0.29 |
% |
|
0.39 |
% |
|
0.73 |
% |
|
0.78 |
% |
|
0.41 |
% |
|
0.78 |
% |
| Non-performing loans / Total
loans (1) (24) |
0.54 |
% |
|
0.29 |
% |
|
0.43 |
% |
|
0.82 |
% |
|
0.89 |
% |
|
0.54 |
% |
|
0.89 |
% |
| Allowance for credit losses /
Total non-performing loans (2)(24) |
222.08 |
% |
|
287.56 |
% |
|
206.84 |
% |
|
119.34 |
% |
|
140.41 |
% |
|
222.08 |
% |
|
140.41 |
% |
| Allowance for loan credit
losses / Total loans held for investment (1)(2) |
1.22 |
% |
|
0.83 |
% |
|
0.91 |
% |
|
0.99 |
% |
|
1.29 |
% |
|
1.22 |
% |
|
1.29 |
% |
| Net charge-offs /
Average total loans held for investment (25) |
0.59 |
% |
|
0.09 |
% |
|
0.29 |
% |
|
0.29 |
% |
|
0.52 |
% |
|
0.32 |
% |
|
0.44 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency Indicators
(% except FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expense / Average
total assets |
2.75 |
% |
|
2.67 |
% |
|
3.18 |
% |
|
3.20 |
% |
|
2.90 |
% |
|
2.95 |
% |
|
2.63 |
% |
| Salaries and employee benefits
/ Average total assets |
1.45 |
% |
|
1.43 |
% |
|
1.54 |
% |
|
1.60 |
% |
|
1.65 |
% |
|
1.51 |
% |
|
1.56 |
% |
| Other operating expenses/
Average total assets (26) |
1.30 |
% |
|
1.24 |
% |
|
1.64 |
% |
|
1.60 |
% |
|
1.25 |
% |
|
1.44 |
% |
|
1.07 |
% |
| Efficiency ratio (27) |
58.42 |
% |
|
65.36 |
% |
|
86.59 |
% |
|
87.29 |
% |
|
41.40 |
% |
|
72.29 |
% |
|
60.85 |
% |
| Full-Time-Equivalent Employees
(FTEs) (28) |
692 |
|
|
681 |
|
|
680 |
|
|
677 |
|
|
763 |
|
|
692 |
|
|
763 |
|
| |
Three Months Ended |
|
Years Ended December 31, |
| (in thousands, except
percentages and per share amounts) |
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| Core Selected
Consolidated Results of Operations and Other Data
(10) |
|
|
|
|
|
|
|
|
|
|
|
|
(audited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net revenue (PPNR) |
$ |
44,457 |
|
|
$ |
29,784 |
|
|
$ |
9,707 |
|
|
$ |
9,928 |
|
|
$ |
79,141 |
|
|
$ |
93,876 |
|
|
$ |
130,130 |
|
| Core pre-provision net revenue
(Core PPNR) |
$ |
37,838 |
|
|
$ |
30,325 |
|
|
$ |
19,447 |
|
|
$ |
17,869 |
|
|
$ |
18,911 |
|
|
$ |
105,479 |
|
|
$ |
69,907 |
|
| Core net income |
$ |
13,610 |
|
|
$ |
21,275 |
|
|
$ |
15,358 |
|
|
$ |
22,216 |
|
|
$ |
19,339 |
|
|
$ |
72,459 |
|
|
$ |
66,796 |
|
| Core basic earnings per common
share |
|
0.41 |
|
|
|
0.64 |
|
|
|
0.46 |
|
|
|
0.64 |
|
|
|
0.53 |
|
|
|
2.14 |
|
|
|
1.80 |
|
| Core earnings per diluted
common share (11) |
|
0.40 |
|
|
|
0.63 |
|
|
|
0.45 |
|
|
|
0.63 |
|
|
|
0.52 |
|
|
|
2.12 |
|
|
|
1.78 |
|
| Core net income / Average
total assets (Core ROA) (14) |
|
0.60 |
% |
|
|
1.01 |
% |
|
|
0.78 |
% |
|
|
1.17 |
% |
|
|
1.02 |
% |
|
|
0.88 |
% |
|
|
0.89 |
% |
| Core net income / Average
stockholders' equity (Core ROE) (15) |
|
7.49 |
% |
|
|
11.47 |
% |
|
|
8.28 |
% |
|
|
11.28 |
% |
|
|
9.46 |
% |
|
|
9.67 |
% |
|
|
8.39 |
% |
| Core efficiency ratio
(29) |
|
61.34 |
% |
|
|
64.14 |
% |
|
|
73.68 |
% |
|
|
76.36 |
% |
|
|
74.98 |
% |
|
|
68.11 |
% |
|
|
73.96 |
% |
__________________(1) Total gross loans include
loans held for investment net of unamortized deferred loan
origination fees and costs. In addition, at June 30, 2022, March
31, 2022 and December 31, 2021, total loans include $66.4 million,
$68.6 million and $143.2 million, respectively, in NYC real estate
loans held for sale carried at the lower of cost or estimated fair
value. In the third quarter of 2022, the Company transferred the
NYC real estate loans held for sale to the loans held for
investment category. Also, in the first quarter of 2022 and the
fourth quarter of 2021, the Company sold approximately $57.3
million and $49.4 million, respectively, in loans held for sale
carried at the lower of cost or estimated fair value related to the
New York portfolio. In addition, as of December 31, 2022, September
30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021,
total loans include $62.4 million, $57.6 million, $54.9 million,
$17.1 million and $14.9 million, respectively, primarily in
mortgage loans held for sale carried at fair value.(2)
In the fourth quarter of 2022, the Company adopted the
Current Expected Credit Loss (“CECL”) accounting standard using a
modified retrospective approach. Therefore, quarterly amounts for
the first, second and third quarters of 2022 do not reflect the
adoption of CECL. In the fourth quarter of 2022, the Company
recorded an increase to its allowance for credit losses (“ACL”) of
$18.7 million as of January 1, 2022, with a corresponding after tax
cumulative effect adjustment to retained earnings of $13.9 million.
In addition, in the fourth quarter of 2022, the Company recorded
the impact of CECL on its ACL in 2022 through a provision for
credit losses of $11.1 million, including the retroactive effect of
CECL for all previous quarterly periods in the year ended December
31, 2022. The Company has not elected to apply an available
three-year transition provision to its regulatory capital
computations as a result of its adoption of CECL in 2022. (3)
Core deposits consist of total deposits excluding all time
deposits. (4) On March 9, 2022, the Company completed a
$30.0 million offering of subordinated notes with a 4.25%
fixed-to-floating rate and due March 15, 2032 (the “Subordinated
Notes”). The Subordinated Notes bear interest at a fixed rate of
4.25% per annum, from and including March 9, 2022, to but excluding
March 15, 2027, with interest payable semi-annually in arrears.
From and including March 15, 2027, to but excluding the stated
maturity date or early redemption date, the interest rate will
reset quarterly to an annual floating rate equal to the
then-current benchmark rate, which will initially be the
three-month Secured Overnight Financing Rate (“SOFR”) plus 251
basis points, with interest during such period payable quarterly in
arrears. If the three-month SOFR cannot be determined during the
applicable floating rate period, a different index will be
determined and used in accordance with the terms of the
Subordinated Notes. Notes are presented net of direct issuance
costs which are deferred and amortized over 10 years. The
Subordinated Notes have been structured to qualify as Tier 2
capital of the Company for regulatory capital purposes, and rank
equally in right of payment to all of our existing and future
subordinated indebtedness. (5) In the first quarter of
2022, the Company repurchased an aggregate of 652,118 shares of
Class A common stock at a weighted average price of $33.96 per
share, under the Class A common stock repurchase program launched
in 2021 (the “Class A Common Stock Repurchase Program”). The
aggregate purchase price for these transactions was approximately
$22.1 million, including transaction costs. On January 31,
2022, the Company announced the completion of the Class A Common
Stock repurchase program. In addition, in the first quarter of
2022, the Company announced the launch of a new repurchase program
pursuant to which the Company may purchase, from time to time, up
to an aggregate amount of $50 million of its shares of Class A
common stock (the “New Class A Common Stock Repurchase Program”).
In the second and first quarters of 2022, the Company repurchased
an aggregate of 611,525 shares and 991,362 shares, respectively, of
Class A common stock at a weighted average price of $28.19 per
share and $32.96 per share, respectively, under the New Class A
Common Stock Repurchase Program. In the second and first quarters
of 2022, the aggregate purchase price for these transactions was
approximately $17.2 million and $32.7 million, respectively,
including transaction costs. On May 19, 2022, the Company announced
the completion of repurchased under the New Class A Common Stock
Repurchase Program.(6) In the fourth quarter of
2021, the Company’s shareholders approved a clean-up merger,
previously announced by the Company, pursuant to which a subsidiary
of the Company merged with and into the Company (the “Merger”).
Under the terms of the Merger, each outstanding share of Class B
common stock was converted to 0.95 of a share of Class A common
stock. In addition, any shareholder who owned fewer than 100 shares
of Class A common stock upon completion of the Merger, received
cash in lieu of Class A common stock. There were no authorized or
outstanding Class B common stock at December 31, 2021. Furthermore,
in connection with the Merger, the Company’s Board of Directors
authorized the Class A Common Stock Repurchase Program which
provided for the potential to repurchase up to $50 million of
shares of Class A common stock. In the fourth quarter of 2021, the
Company repurchased an aggregate of 1,175,119 shares of Class A
common stock for an aggregate purchase price of $36.3 million,
including $27.9 million repurchased under the Class A Common Stock
Repurchase Program and $8.5 million shares cashed out in accordance
with the terms of the Merger. The total weighted average market
price of these transactions was $30.92 per share. (7)
In the fourth, third, second and first quarters of 2022, and
in the fourth quarter of 2021, the Company’s Board of Directors
declared cash dividends of $0.09, $0.09, $0.09, $0.09 and $0.06 per
share of the Company’s common stock, respectively. The dividend
declared in the fourth quarter of 2022 was paid on November 30,
2022 to shareholders record at the close of business on November
15, 2022. The dividend declared in the third quarter of 2022 was
paid on August 31, 2022 to shareholders of record at the close of
business on August 17, 2022.The dividend declared in the second
quarter of 2022 was paid on May 31, 2022 to shareholders of record
at the close of business on May 13, 2022.The dividend declared in
the first quarter of 2022 was paid on February 28, 2022 to
shareholders of record at the close of business on February 11,
2022. The dividend declared in the fourth quarter of 2021 was paid
on or before January 15, 2022 to holders of record as of December
22, 2021. The aggregate amount paid in connection with these
dividends in the fourth, third, second and first quarters of 2022,
and in the fourth quarter of 2021 was $3.0 million, $3.0 million,
$3.0 million, $3.2 million and $2.2 million, respectively(8)
Assets held for clients in an agency or fiduciary capacity
which are not assets of the Company and therefore are not included
in the consolidated financial statements.(9) In the
three months ended December 31, 2022, September 30, 2022, June 30,
2022, March 31, 2022 and December 31, 2021, net income exclude
losses of $0.2 million, $44 thousand, $0.1 million, $1.1 million
and $1.2 million, respectively, attributable to the minority
interest of Amerant Mortgage LLC. Beginning March 31, 2022, the
minority interest share changed from 49% to 42.6%. This change had
no impact to the Company’s financial condition or results of
operations as of and for the first quarter ended March 31, 2022. In
addition, in the second quarter of 2022, the minority interest
share changed from 42.6% to 20%. In connection with the change in
minority interest share in the second quarter of 2022, the Company
reduced its additional paid-in capital for a total of $1.9 million
with a corresponding increase to the equity attributable to
noncontrolling interests. (10) This presentation
contains adjusted financial information determined by methods other
than GAAP. This adjusted financial information is reconciled to
GAAP in Exhibit 2 - Non-GAAP Financial Measures
Reconciliation.(11) In all the periods shown, potential
dilutive instruments consisted of unvested shares of restricted
stock, restricted stock units and performance stock units.
Potential dilutive instruments were included in the diluted
earnings per share computation because, when the unamortized
deferred compensation cost related to these shares was divided by
the average market price per share in all the periods shown, fewer
shares would have been purchased than restricted shares assumed
issued. Therefore, in those periods, such awards resulted in higher
diluted weighted average shares outstanding than basic weighted
average shares outstanding, and had a dilutive effect in per share
earnings. (12) Operating data for the periods presented
have been annualized.(13) NIM is defined as NII divided
by average interest-earning assets, which are loans, securities,
deposits with banks and other financial assets which yield interest
or similar income.(14) Calculated based upon the
average daily balance of total assets.(15) Calculated
based upon the average daily balance of stockholders’
equity.(16) Total revenue is the result of net interest
income before provision for credit losses plus noninterest
income.(17) Total stockholders’ equity divided by total
risk-weighted assets, calculated according to the standardized
regulatory capital ratio calculations.(18) Tier 1
capital divided by total risk-weighted assets. Tier 1 capital is
composed of Common Equity Tier 1 (CET1) capital plus outstanding
qualifying trust preferred securities of $62.3 million at each of
all the dates presented.(19) Tier 1 capital divided by
quarter to date average assets. (20) CET1 capital
divided by total risk-weighted assets.(21) Tangible
common equity is calculated as the ratio of common equity less
goodwill and other intangibles divided by total assets less
goodwill and other intangible assets. Other intangible assets
consist of, among other things, mortgage servicing rights and are
included in other assets in the Company’s consolidated balance
sheets.(22) Calculated as the ratio of total loans
gross divided by total deposits.(23) 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 other real estate owned
(“OREO”) properties acquired through or in lieu of foreclosure.
(24) Non-performing loans include all accruing loans
past due by 90 days or more, all nonaccrual loans and restructured
loans that are considered TDRs.(25) 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 credit losses. During the
fourth, third, second and first quarters of 2022, and the fourth
quarter of 2021, there were net charge offs of $9.8 million, $1.3
million, $4.0 million, $3.8 million, and $7.0 million,
respectively. During the fourth quarter of 2022, the Company
charged-off $3.9 million related to a CRE loan, $5.5 million
related to multiple consumer loans and $1.1 million related to
multiple commercial loans. During the third quarter of 2022, the
Company charged-off $1.7 million related to multiple consumer loans
and $0.2 million in connection with two commercial loans. During
the second quarter of 2022, the Company charged-off $3.6 million in
connection with a loan relationship with a Miami-based U.S. coffee
trader. During the first quarter of 2022, the Company charged-off
$3.3 million in two commercial loans, including $2.5 million
related to a nonaccrual loan paid off during the period. During the
fourth quarter of 2021, the Company charged-off an aggregate of
$4.2 million related to various commercial loans and $1.8 million
related to one real estate loan. (26) Other operating
expenses is the result of total noninterest expense less salary and
employee benefits.(27) Efficiency ratio is the result
of noninterest expense divided by the sum of noninterest income
and NII.(28) As of December 31, 2022, September
30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021,
includes 68, 67, 67, 79, and 72 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”).(29) 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) credit
losses, provision for income tax expense (benefit), the effect of
non-core banking activities such as the sale of loans and
securities,the valuation of securities, derivatives, loans held for
sale and other real estate owned, the sale and leaseback of our
corporate headquarters in the fourth quarter of 2021, and other
non-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 EndedDecember 31, |
| (in thousands) |
December 31, 2022 |
September 30, 2022 |
June 30,2022 |
March 31,2022 |
December 31, 2021 |
|
|
2022 |
|
2021(audited) |
| |
|
|
|
|
|
|
|
|
|
Net income attributable to Amerant Bancorp Inc. (1) |
$ |
18,766 |
|
$ |
20,920 |
|
$ |
7,674 |
|
$ |
15,950 |
|
$ |
65,469 |
|
|
$ |
63,310 |
|
$ |
112,921 |
|
| Plus: provision for (reversal
of) credit losses (1) |
|
20,945 |
|
|
3,000 |
|
|
— |
|
|
(10,000 |
) |
|
(6,500 |
) |
|
|
13,945 |
|
|
(16,500 |
) |
| Plus: provision for income tax
expense (2) |
|
4,746 |
|
|
5,864 |
|
|
2,033 |
|
|
3,978 |
|
|
20,172 |
|
|
|
16,621 |
|
|
33,709 |
|
| Pre-provision net
revenue (PPNR) |
$ |
44,457 |
|
$ |
29,784 |
|
$ |
9,707 |
|
$ |
9,928 |
|
$ |
79,141 |
|
|
$ |
93,876 |
|
$ |
130,130 |
|
| Plus: non-routine noninterest
expense items |
|
2,447 |
|
|
1,954 |
|
|
7,995 |
|
|
6,574 |
|
|
1,895 |
|
|
|
18,970 |
|
|
7,057 |
|
| (Less) Plus: non-routine
noninterest income items |
|
(9,066 |
) |
|
(1,413 |
) |
|
1,745 |
|
|
1,367 |
|
|
(62,125 |
) |
|
|
(7,367 |
) |
|
(67,280 |
) |
| Core pre-provision net
revenue (Core PPNR) |
$ |
37,838 |
|
$ |
30,325 |
|
$ |
19,447 |
|
$ |
17,869 |
|
$ |
18,911 |
|
|
$ |
105,479 |
|
$ |
69,907 |
|
| |
|
|
|
|
|
|
|
|
| Total noninterest income |
$ |
24,365 |
|
$ |
15,956 |
|
$ |
12,931 |
|
$ |
14,025 |
|
$ |
77,290 |
|
|
$ |
67,277 |
|
$ |
120,621 |
|
| Less: Non-routine noninterest
income items: |
|
|
|
|
|
|
|
|
|
Less: gain on sale of Headquarters building (2) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
62,387 |
|
|
|
— |
|
|
62,387 |
|
|
Derivative gains (losses), net |
|
1,040 |
|
|
(95 |
) |
|
855 |
|
|
(1,345 |
) |
|
— |
|
|
|
455 |
|
|
— |
|
|
Securities (loss) gains, net |
|
(3,364 |
) |
|
1,508 |
|
|
(2,602 |
) |
|
769 |
|
|
(117 |
) |
|
|
(3,689 |
) |
|
3,740 |
|
|
Gain (loss) on early extinguishment of FHLB advances, net |
|
11,390 |
|
|
— |
|
|
2 |
|
|
(714 |
) |
|
— |
|
|
|
10,678 |
|
|
(2,488 |
) |
|
(Loss) gain on sale of loans |
|
— |
|
|
— |
|
|
— |
|
|
(77 |
) |
|
(145 |
) |
|
|
(77 |
) |
|
3,641 |
|
|
Total non-routine noninterest income items |
$ |
9,066 |
|
$ |
1,413 |
|
$ |
(1,745 |
) |
$ |
(1,367 |
) |
$ |
62,125 |
|
|
$ |
7,367 |
|
$ |
67,280 |
|
| Core noninterest
income |
$ |
15,299 |
|
$ |
14,543 |
|
$ |
14,676 |
|
$ |
15,392 |
|
$ |
15,165 |
|
|
$ |
59,910 |
|
$ |
53,341 |
|
| |
|
|
|
|
|
|
|
|
| Total noninterest
expenses |
$ |
62,241 |
|
$ |
56,113 |
|
$ |
62,241 |
|
$ |
60,818 |
|
$ |
55,088 |
|
|
$ |
241,413 |
|
$ |
198,242 |
|
| Less: non-routine noninterest
expense items |
|
|
|
|
|
|
|
|
| Restructuring costs (3) |
|
|
|
|
|
|
|
|
|
Staff reduction costs (4) |
|
1,221 |
|
|
358 |
|
|
674 |
|
|
765 |
|
|
26 |
|
|
|
3,018 |
|
|
3,604 |
|
|
Contract termination costs (5) |
|
— |
|
|
289 |
|
|
2,802 |
|
|
4,012 |
|
|
— |
|
|
|
7,103 |
|
|
— |
|
|
Legal and Consulting fees (6) |
|
1,226 |
|
|
1,073 |
|
|
80 |
|
|
1,246 |
|
|
1,277 |
|
|
|
3,625 |
|
|
1,689 |
|
|
Digital transformation expenses |
|
— |
|
|
— |
|
|
— |
|
|
45 |
|
|
50 |
|
|
|
45 |
|
|
412 |
|
|
Lease impairment charge (7) |
|
— |
|
|
— |
|
|
1,565 |
|
|
14 |
|
|
— |
|
|
|
1,579 |
|
|
810 |
|
|
Branch closure expenses (8) |
|
— |
|
|
— |
|
|
— |
|
|
33 |
|
|
542 |
|
|
|
33 |
|
|
542 |
|
|
Total restructuring costs |
$ |
2,447 |
|
$ |
1,720 |
|
$ |
5,121 |
|
$ |
6,115 |
|
$ |
1,895 |
|
|
$ |
15,403 |
|
$ |
7,057 |
|
| Other non-routine noninterest
expense items: |
|
|
|
|
|
|
|
|
|
Other real estate owned valuation expense (9) |
|
— |
|
|
234 |
|
|
3,174 |
|
|
— |
|
|
— |
|
|
|
3,408 |
|
|
— |
|
|
Loans held for sale valuation (reversal) expense (10) |
|
— |
|
|
— |
|
|
(300 |
) |
|
459 |
|
|
— |
|
|
|
159 |
|
|
— |
|
| Total non-routine noninterest
expense items |
$ |
2,447 |
|
$ |
1,954 |
|
$ |
7,995 |
|
$ |
6,574 |
|
$ |
1,895 |
|
|
$ |
18,970 |
|
$ |
7,057 |
|
| Core noninterest
expenses |
$ |
59,794 |
|
$ |
54,159 |
|
$ |
54,246 |
|
$ |
54,244 |
|
$ |
53,193 |
|
|
$ |
222,443 |
|
$ |
191,185 |
|
| |
|
|
|
|
|
|
|
|
| (in thousands, except
percentages and per share data) |
December 31, 2022 |
September 30, 2022 |
June 30,2022 |
March 31,2022 |
December 31, 2021 |
|
|
2022 |
|
2021(audited) |
| Net income attributable to
Amerant Bancorp Inc. (1) |
$ |
18,766 |
|
$ |
20,920 |
|
$ |
7,674 |
|
$ |
15,950 |
|
$ |
65,469 |
|
|
$ |
63,310 |
|
$ |
112,921 |
|
| Plus after-tax non-routine
items in noninterest expense: |
|
|
|
|
|
|
|
|
| Non-routine items in
noninterest expense before income tax effect |
|
2,447 |
|
|
1,954 |
|
|
7,995 |
|
|
6,574 |
|
|
1,895 |
|
|
|
18,970 |
|
|
7,057 |
|
| Income tax effect (11) |
|
(460 |
) |
|
(478 |
) |
|
(1,687 |
) |
|
(1,387 |
) |
|
(478 |
) |
|
|
(4,012 |
) |
|
(1,652 |
) |
| Total after-tax non-routine
items in noninterest expense |
|
1,987 |
|
|
1,476 |
|
|
6,308 |
|
|
5,187 |
|
|
1,417 |
|
|
|
14,958 |
|
|
5,405 |
|
| Plus (less): before-tax
non-routine items in noninterest income: |
|
|
|
|
|
|
|
|
| Non-routine items in
noninterest income before income tax effect |
|
(9,066 |
) |
|
(1,413 |
) |
|
1,745 |
|
|
1,367 |
|
|
(62,125 |
) |
|
|
(7,367 |
) |
|
(67,280 |
) |
| Income tax effect (11) |
|
1,923 |
|
|
292 |
|
|
(369 |
) |
|
(288 |
) |
|
14,578 |
|
|
|
1,558 |
|
|
15,750 |
|
| Total after-tax non-routine
items in noninterest income |
|
(7,143 |
) |
|
(1,121 |
) |
|
1,376 |
|
|
1,079 |
|
|
(47,547 |
) |
|
|
(5,809 |
) |
|
(51,530 |
) |
| Core net
income |
$ |
13,610 |
|
$ |
21,275 |
|
$ |
15,358 |
|
$ |
22,216 |
|
$ |
19,339 |
|
|
$ |
72,459 |
|
$ |
66,796 |
|
| |
|
|
|
|
|
|
|
|
| Basic earnings per share |
$ |
0.56 |
|
$ |
0.62 |
|
$ |
0.23 |
|
$ |
0.46 |
|
$ |
1.79 |
|
|
$ |
1.87 |
|
$ |
3.04 |
|
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.06 |
|
|
0.04 |
|
|
0.19 |
|
|
0.15 |
|
|
0.04 |
|
|
|
0.44 |
|
|
0.15 |
|
| (Less) Plus: after tax impact
of non-routine items in noninterest income |
|
(0.21 |
) |
|
(0.02 |
) |
|
0.04 |
|
|
0.03 |
|
|
(1.30 |
) |
|
|
(0.17 |
) |
|
(1.39 |
) |
| Total core basic
earnings per common share |
$ |
0.41 |
|
$ |
0.64 |
|
$ |
0.46 |
|
$ |
0.64 |
|
$ |
0.53 |
|
|
$ |
2.14 |
|
$ |
1.80 |
|
| |
|
|
|
|
|
|
|
|
| Diluted earnings per share
(12) |
$ |
0.55 |
|
$ |
0.62 |
|
$ |
0.23 |
|
$ |
0.45 |
|
$ |
1.77 |
|
|
$ |
1.85 |
|
$ |
3.01 |
|
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.06 |
|
|
0.04 |
|
|
0.18 |
|
|
0.15 |
|
|
0.04 |
|
|
|
0.44 |
|
|
0.14 |
|
| (Less) Plus: after tax impact
of non-routine items in noninterest income |
|
(0.21 |
) |
|
(0.03 |
) |
|
0.04 |
|
|
0.03 |
|
|
(1.29 |
) |
|
|
(0.17 |
) |
|
(1.37 |
) |
| Total core diluted
earnings per common share |
$ |
0.40 |
|
$ |
0.63 |
|
$ |
0.45 |
|
$ |
0.63 |
|
$ |
0.52 |
|
|
$ |
2.12 |
|
$ |
1.78 |
|
| |
|
|
|
|
|
|
|
|
| Net income / Average total
assets (ROA) |
|
0.83 |
% |
|
1.00 |
% |
|
0.39 |
% |
|
0.84 |
% |
|
3.45 |
% |
|
|
0.77 |
% |
|
1.50 |
% |
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.09 |
% |
|
0.07 |
% |
|
0.32 |
% |
|
0.28 |
% |
|
0.07 |
% |
|
|
0.18 |
% |
|
0.07 |
% |
| (Less) Plus: after tax impact
of non-routine items in noninterest income |
(0.32 |
)% |
(0.06 |
)% |
|
0.07 |
% |
|
0.06 |
% |
(2.50 |
)% |
|
(0.07 |
)% |
(0.68 |
)% |
| Core net income /
Average total assets (Core ROA) |
|
0.60 |
% |
|
1.01 |
% |
|
0.78 |
% |
|
1.18 |
% |
|
1.02 |
% |
|
|
0.88 |
% |
|
0.89 |
% |
| |
|
|
|
|
|
|
|
|
| Net income / Average
stockholders' equity (ROE) |
|
10.33 |
% |
|
11.28 |
% |
|
4.14 |
% |
|
8.10 |
% |
|
32.04 |
% |
|
|
8.45 |
% |
|
14.19 |
% |
| Plus: after tax impact of
non-routine items in noninterest expense |
|
1.09 |
% |
|
0.80 |
% |
|
3.40 |
% |
|
2.63 |
% |
|
0.69 |
% |
|
|
2.00 |
% |
|
0.68 |
% |
| (Less) Plus: after tax impact
of non-routine items in noninterest income |
(3.93 |
)% |
(0.61 |
)% |
|
0.74 |
% |
|
0.55 |
% |
(23.27 |
)% |
|
(0.78 |
)% |
(6.48 |
)% |
| Core net income /
Average stockholders' equity (Core ROE) |
|
7.49 |
% |
|
11.47 |
% |
|
8.28 |
% |
|
11.28 |
% |
|
9.46 |
% |
|
|
9.67 |
% |
|
8.39 |
% |
| |
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
58.42 |
% |
|
65.36 |
% |
|
86.59 |
% |
|
87.29 |
% |
|
41.40 |
% |
|
|
72.29 |
% |
|
60.85 |
% |
| Less: impact of non-routine
items in noninterest expense |
(2.30 |
)% |
(2.28 |
)% |
(11.12 |
)% |
(9.43 |
)% |
(1.43 |
)% |
|
(5.68 |
)% |
(2.16 |
)% |
| Plus (Less): impact of
non-routine items in noninterest income |
|
5.22 |
% |
|
1.06 |
% |
(1.79 |
)% |
(1.50 |
)% |
|
35.01 |
% |
|
|
1.50 |
% |
|
15.27 |
% |
| Core efficiency
ratio |
|
61.34 |
% |
|
64.14 |
% |
|
73.68 |
% |
|
76.36 |
% |
|
74.98 |
% |
|
|
68.11 |
% |
|
73.96 |
% |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (in thousands, except
percentages, share data and per share data) |
December 31, 2022 |
September 30, 2022 |
June 30,2022 |
March 31,2022 |
December 31, 2021 |
|
|
2022 |
|
2021(audited) |
| Stockholders' equity |
$ |
705,726 |
|
$ |
695,698 |
|
$ |
711,450 |
|
$ |
749,396 |
|
$ |
831,873 |
|
|
$ |
705,726 |
|
$ |
831,873 |
|
| Less: goodwill and other
intangibles (13) |
|
(23,161 |
) |
|
(22,814 |
) |
|
(22,808 |
) |
|
(22,795 |
) |
|
(22,528 |
) |
|
|
(23,161 |
) |
|
(22,528 |
) |
| Tangible common stockholders'
equity |
$ |
682,565 |
|
$ |
672,884 |
|
$ |
688,642 |
|
$ |
726,601 |
|
$ |
809,345 |
|
|
$ |
682,565 |
|
$ |
809,345 |
|
| Total assets |
|
9,127,804 |
|
|
8,739,979 |
|
|
8,151,242 |
|
|
7,805,836 |
|
|
7,638,399 |
|
|
|
9,127,804 |
|
|
7,638,399 |
|
| Less: goodwill and other
intangibles (13) |
|
(23,161 |
) |
|
(22,814 |
) |
|
(22,808 |
) |
|
(22,795 |
) |
|
(22,528 |
) |
|
|
(23,161 |
) |
|
(22,528 |
) |
| Tangible assets |
$ |
9,104,643 |
|
$ |
8,717,165 |
|
$ |
8,128,434 |
|
$ |
7,783,041 |
|
$ |
7,615,871 |
|
|
$ |
9,104,643 |
|
$ |
7,615,871 |
|
| Common shares outstanding |
|
33,815,161 |
|
|
33,773,249 |
|
|
33,759,604 |
|
|
34,350,822 |
|
|
35,883,320 |
|
|
|
33,815,161 |
|
|
35,883,320 |
|
| Tangible common equity
ratio |
|
7.50 |
% |
|
7.72 |
% |
|
8.47 |
% |
|
9.34 |
% |
|
10.63 |
% |
|
|
7.50 |
% |
|
10.63 |
% |
| Stockholders' book
value per common share |
$ |
20.87 |
|
$ |
20.60 |
|
$ |
21.07 |
|
$ |
21.82 |
|
$ |
23.18 |
|
|
$ |
20.87 |
|
$ |
23.18 |
|
| Tangible stockholders'
book value per common share |
$ |
20.19 |
|
$ |
19.92 |
|
$ |
20.40 |
|
$ |
21.15 |
|
$ |
22.55 |
|
|
$ |
20.19 |
|
$ |
22.55 |
|
____________(1) Net income attributable to the
Company results in $22.0 million in the fourth quarter of 2022,
excluding the CECL retroactive effect corresponding to the first,
second, and third quarters of 2022. The provision for credit losses
attributable to the fourth quarter of 2022 is $16.9 million,
excluding the CECL retroactive effect corresponding to the first,
second and third quarters of 2022. In the fourth quarter of 2022,
the Company adopted CECL and recorded the related impact on its ACL
in 2022 through a provision for credit losses of $11.1
million.(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.
The provision for income tax expense includes approximately $16.1
million related to this transaction in the three months ended
December 31, 2021.(3) Expenses incurred for actions
designed to implement the Company’s business strategy. These
actions include, but are not limited to reductions in workforce,
streamlining operational processes, rolling out the Amerant brand,
implementation of new technology system applications,
decommissioning of legacy technologies, enhanced sales tools and
training, expanded product offerings and improved customer
analytics to identify opportunities. (4) In the fourth
quarter of 2022, includes expenses primarily in connection with
changes in certain positions within our business units. In the
third quarter of 2022 and the fourth quarter of 2021, includes
expenses primarily in connection with the elimination of certain
support functions. In the second and first quarters of 2022,
includes expenses primarily in connection with the restructuring of
business lines and the outsourcing of certain human resources
functions.(5) Contract termination and related costs
associated with third party vendors resulting from the Company’s
engagement of FIS.(6) Includes: (i) expenses in
connection with the engagement of FIS of $1.1 million, $1.0
million, $0.8 million and $0.5 million in the three months ended
December 31, 2022, September 30, 2022, March 31, 2022 and December
31, 2021, respectively, and $2.9 million and $0.7 million in the
years ended December 31, 2022 and 2021, respectively; (ii) an
aggregate of $0.3 million in connection with information technology
projects, and certain search and recruitment expenses in the three
months ended March 31, 2022, and (iii) expenses in connection with
the Merger and related transactions of $0.6 million and $0.8
million in the three months and the year ended December 31, 2021,
respectively.(7) In the three months ended June 30,
2022 and the year ended December 31, 2022, includes $1.6 million of
ROU asset impairment associated with the closure of a branch in
Pembroke Pines, Florida in 2022. In the year ended December 31,
2021, includes $0.8 million of ROU asset impairment associated with
the lease of the NY loan production office.(8) Expenses
related to the Fort Lauderdale, Florida branch lease termination in
2021 and in Wellington, Florida in 2022.(9) Fair value
adjustment related to one OREO property in New York.(10)
Fair value adjustment related to the New York loan portfolio
held for sale carried at the lower of cost or fair value.(11)
In the years ended December 31, 2022 and 2021, and in the
three months ended March 31, 2022, amounts were calculated based
upon the effective tax rate for the periods of 21.15%, 23.41% and
21.10%, respectively. For all of the other periods shown, amounts
represent the difference between the prior and current period
year-to-date tax effect. (12) In the three months ended
December 31, 2022, September 30, 2022, June 30, 2022, March 31,
2022 and December 31, 2021, potential dilutive instruments
consisted of unvested shares of restricted stock, restricted stock
units and performance stock units. In all the periods presented,
potential dilutive instruments were included in the diluted
earnings per share computation because, when the unamortized
deferred compensation cost related to these shares was divided by
the average market price per share in those periods, fewer shares
would have been purchased than restricted shares assumed issued.
Therefore, in those periods, such awards resulted in higher diluted
weighted average shares outstanding than basic weighted average
shares outstanding, and had a dilutive effect on per share
earnings.(13) Other intangible assets consist of, among
other things, mortgage servicing rights (“MSRs”) of $1.3 million,
$1.0 million, $0.9 million, $0.9 million and $0.6 million at
December 31, 2022, September 30, 2022, June 30, 2022, March 31,
2022 and December 31, 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, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
| |
|
|
|
|
|
|
|
|
|
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
AverageBalances |
Income/Expense |
Yield/Rates |
|
AverageBalances |
Income/Expense |
Yield/Rates |
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio, net (1)(2) |
$ |
6,688,839 |
$ |
98,579 |
5.85 |
% |
|
$ |
6,021,294 |
$ |
76,779 |
5.06 |
% |
|
$ |
5,475,207 |
$ |
56,521 |
4.10 |
% |
|
Debt securities available for sale (3)(4) |
|
1,060,240 |
|
9,817 |
3.67 |
% |
|
|
1,110,153 |
|
8,379 |
2.99 |
% |
|
|
1,171,691 |
|
7,010 |
2.37 |
% |
|
Debt securities held to maturity (5) |
|
239,680 |
|
2,052 |
3.40 |
% |
|
|
235,916 |
|
1,921 |
3.23 |
% |
|
|
121,842 |
|
745 |
2.43 |
% |
|
Debt securities held for trading |
|
56 |
|
1 |
7.08 |
% |
|
|
65 |
|
1 |
6.10 |
% |
|
|
143 |
|
1 |
2.77 |
% |
|
Equity securities with readily determinable fair value not held for
trading |
|
12,365 |
|
— |
— |
% |
|
|
12,018 |
|
— |
— |
% |
|
|
17,138 |
|
59 |
1.37 |
% |
|
Federal Reserve Bank and FHLB stock |
|
55,585 |
|
874 |
6.24 |
% |
|
|
49,398 |
|
605 |
4.86 |
% |
|
|
49,591 |
|
535 |
4.28 |
% |
|
Deposits with banks |
|
183,926 |
|
2,051 |
4.42 |
% |
|
|
258,237 |
|
1,452 |
2.23 |
% |
|
|
155,479 |
|
58 |
0.15 |
% |
|
Total interest-earning assets |
|
8,240,691 |
|
113,374 |
5.46 |
% |
|
|
7,687,081 |
|
89,137 |
4.60 |
% |
|
|
6,991,091 |
|
64,929 |
3.68 |
% |
| Total non-interest-earning
assets (6) |
|
731,685 |
|
|
|
|
639,118 |
|
|
|
|
537,549 |
|
|
| Total assets |
$ |
8,972,376 |
|
|
|
$ |
8,326,199 |
|
|
|
$ |
7,528,640 |
|
|
| |
Three Months Ended |
| |
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
| |
|
|
|
|
|
|
|
|
|
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
AverageBalances |
Income/Expense |
Yield/Rates |
|
AverageBalances |
Income/Expense |
Yield/Rates |
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Checking and saving accounts
- |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing DDA |
$ |
2,178,106 |
|
$ |
8,860 |
1.61 |
% |
|
$ |
2,077,321 |
|
$ |
4,934 |
0.94 |
% |
|
$ |
1,342,416 |
|
$ |
208 |
0.06 |
% |
|
Money market |
|
1,412,033 |
|
|
6,034 |
1.70 |
% |
|
|
1,363,799 |
|
|
3,555 |
1.03 |
% |
|
|
1,337,529 |
|
|
788 |
0.23 |
% |
|
Savings |
|
313,688 |
|
|
55 |
0.07 |
% |
|
|
320,861 |
|
|
54 |
0.07 |
% |
|
|
327,090 |
|
|
11 |
0.01 |
% |
| Total checking and saving
accounts |
|
3,903,827 |
|
|
14,949 |
1.52 |
% |
|
|
3,761,981 |
|
|
8,543 |
0.90 |
% |
|
|
3,007,035 |
|
|
1,007 |
0.13 |
% |
| Time deposits |
|
1,538,239 |
|
|
8,623 |
2.22 |
% |
|
|
1,247,084 |
|
|
4,717 |
1.50 |
% |
|
|
1,380,337 |
|
|
4,777 |
1.37 |
% |
| Total deposits |
|
5,442,066 |
|
|
23,572 |
1.72 |
% |
|
|
5,009,065 |
|
|
13,260 |
1.05 |
% |
|
|
4,387,372 |
|
|
5,784 |
0.52 |
% |
| Securities sold under
agreements to repurchase |
|
68 |
|
|
1 |
5.83 |
% |
|
|
— |
|
|
— |
— |
% |
|
|
55 |
|
|
— |
— |
% |
| Advances from the FHLB and
other borrowings (7) |
|
994,185 |
|
|
5,293 |
2.11 |
% |
|
|
866,639 |
|
|
3,977 |
1.82 |
% |
|
|
863,137 |
|
|
1,805 |
0.83 |
% |
| Senior notes |
|
59,172 |
|
|
941 |
6.31 |
% |
|
|
59,092 |
|
|
941 |
6.32 |
% |
|
|
58,855 |
|
|
942 |
6.35 |
% |
| Subordinated notes |
|
29,263 |
|
|
361 |
4.89 |
% |
|
|
29,220 |
|
|
362 |
4.92 |
% |
|
|
— |
|
|
— |
— |
% |
| Junior subordinated
debentures |
|
64,178 |
|
|
1,028 |
6.35 |
% |
|
|
64,178 |
|
|
700 |
4.33 |
% |
|
|
64,178 |
|
|
618 |
3.82 |
% |
| Total interest-bearing
liabilities |
|
6,588,932 |
|
|
31,196 |
1.88 |
% |
|
|
6,028,194 |
|
|
19,240 |
1.27 |
% |
|
|
5,373,597 |
|
|
9,149 |
0.68 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
1,318,787 |
|
|
|
|
|
1,316,988 |
|
|
|
|
|
1,210,365 |
|
|
|
| Accounts payable, accrued
liabilities and other liabilities |
|
343,923 |
|
|
|
|
|
245,425 |
|
|
|
|
|
133,927 |
|
|
|
| Total non-interest-bearing
liabilities |
|
1,662,710 |
|
|
|
|
|
1,562,413 |
|
|
|
|
|
1,344,292 |
|
|
|
| Total liabilities |
|
8,251,642 |
|
|
|
|
|
7,590,607 |
|
|
|
|
|
6,717,889 |
|
|
|
| Stockholders’ equity |
|
720,734 |
|
|
|
|
|
735,592 |
|
|
|
|
|
810,751 |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
8,972,376 |
|
|
|
|
$ |
8,326,199 |
|
|
|
|
$ |
7,528,640 |
|
|
|
| Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,651,759 |
|
|
|
|
$ |
1,658,887 |
|
|
|
|
$ |
1,617,494 |
|
|
|
| Net interest
income |
|
$ |
82,178 |
|
|
|
$ |
69,897 |
|
|
|
$ |
55,780 |
|
| Net interest rate spread |
|
|
3.58 |
% |
|
|
|
3.33 |
% |
|
|
|
3.00 |
% |
| Net interest margin (8) |
|
|
3.96 |
% |
|
|
|
3.61 |
% |
|
|
|
3.17 |
% |
| Cost of total deposits
(9) |
|
|
1.38 |
% |
|
|
|
0.83 |
% |
|
|
|
0.41 |
% |
| Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
125.07 |
% |
|
|
|
|
127.52 |
% |
|
|
|
|
130.10 |
% |
|
|
| Average non-performing loans/
Average total loans |
|
0.38 |
% |
|
|
|
|
0.42 |
% |
|
|
|
|
1.13 |
% |
|
|
| |
Year Ended December 31, |
| |
|
2022 |
|
|
2021(audited) |
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
Average Balances |
Income/ Expense |
Yield/ Rates |
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
Loan portfolio, net (1)(2) |
$ |
5,963,190 |
|
$ |
293,210 |
4.92 |
% |
|
$ |
5,514,110 |
|
$ |
216,097 |
3.92 |
% |
|
Debt securities available for sale (3)(4) |
|
1,112,590 |
|
|
33,187 |
2.98 |
% |
|
|
1,194,505 |
|
|
26,953 |
2.26 |
% |
|
Debt securities held to maturity (5) |
|
192,397 |
|
|
5,657 |
2.94 |
% |
|
|
97,501 |
|
|
2,036 |
2.09 |
% |
|
Debt securities held for trading |
|
64 |
|
|
4 |
6.25 |
% |
|
|
165 |
|
|
5 |
3.03 |
% |
|
Equity securities with readily determinable fair value not held for
trading |
|
9,560 |
|
|
— |
— |
% |
|
|
22,332 |
|
|
284 |
1.27 |
% |
|
Federal Reserve Bank and FHLB stock |
|
51,496 |
|
|
2,565 |
4.98 |
% |
|
|
53,106 |
|
|
2,222 |
4.18 |
% |
|
Deposits with banks |
|
231,402 |
|
|
4,153 |
1.79 |
% |
|
|
201,950 |
|
|
247 |
0.12 |
% |
|
Total interest-earning assets |
|
7,560,699 |
|
|
338,776 |
4.48 |
% |
|
|
7,083,669 |
|
|
247,844 |
3.50 |
% |
| Total non-interest-earning
assets (6) |
|
626,989 |
|
|
|
|
|
449,347 |
|
|
|
| Total assets |
$ |
8,187,688 |
|
|
|
|
$ |
7,533,016 |
|
|
|
| |
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
| Checking and saving accounts
- |
|
|
|
|
|
|
|
|
Interest bearing DDA |
$ |
1,872,100 |
|
$ |
15,118 |
0.81 |
% |
|
$ |
1,309,699 |
|
$ |
591 |
0.05 |
% |
|
Money market |
|
1,323,563 |
|
|
11,673 |
0.88 |
% |
|
|
1,311,278 |
|
|
3,483 |
0.27 |
% |
|
Savings |
|
319,631 |
|
|
135 |
0.04 |
% |
|
|
324,618 |
|
|
50 |
0.02 |
% |
| Total checking and saving
accounts |
|
3,515,294 |
|
|
26,926 |
0.77 |
% |
|
|
2,945,595 |
|
|
4,124 |
0.14 |
% |
| Time deposits |
|
1,334,605 |
|
|
22,124 |
1.66 |
% |
|
|
1,668,459 |
|
|
23,766 |
1.42 |
% |
| Total deposits |
|
4,849,899 |
|
|
49,050 |
1.01 |
% |
|
|
4,614,054 |
|
|
27,890 |
0.60 |
% |
| Securities sold under
agreements to repurchase |
|
32 |
|
|
1 |
3.13 |
% |
|
|
123 |
|
|
1 |
0.81 |
% |
| Advances from the FHLB and
other borrowings (7) |
|
911,448 |
|
|
15,092 |
1.66 |
% |
|
|
822,769 |
|
|
8,595 |
1.04 |
% |
| Senior notes |
|
59,054 |
|
|
3,766 |
6.38 |
% |
|
|
58,737 |
|
|
3,768 |
6.42 |
% |
| Subordinated notes |
|
23,853 |
|
|
1,172 |
4.91 |
% |
|
|
— |
|
|
— |
— |
% |
| Junior subordinated
debentures |
|
64,178 |
|
|
3,030 |
4.72 |
% |
|
|
64,178 |
|
|
2,449 |
3.82 |
% |
| Total interest-bearing
liabilities |
|
5,908,464 |
|
|
72,111 |
1.22 |
% |
|
|
5,559,861 |
|
|
42,703 |
0.77 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
1,286,570 |
|
|
|
|
|
1,046,766 |
|
|
|
| Accounts payable, accrued
liabilities and other liabilities |
|
243,105 |
|
|
|
|
|
130,548 |
|
|
|
| Total non-interest-bearing
liabilities |
|
1,529,675 |
|
|
|
|
|
1,177,314 |
|
|
|
| Total liabilities |
|
7,438,139 |
|
|
|
|
|
6,737,175 |
|
|
|
| Stockholders’ equity |
|
749,549 |
|
|
|
|
|
795,841 |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
8,187,688 |
|
|
|
|
$ |
7,533,016 |
|
|
|
| Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,652,235 |
|
|
|
|
$ |
1,523,808 |
|
|
|
| Net interest
income |
|
$ |
266,665 |
|
|
|
$ |
205,141 |
|
| Net interest rate spread |
|
|
3.26 |
% |
|
|
|
2.73 |
% |
| Net interest margin (8) |
|
|
3.53 |
% |
|
|
|
2.90 |
% |
| Cost of total deposits
(9) |
|
|
0.80 |
% |
|
|
|
0.49 |
% |
| Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
127.96 |
% |
|
|
|
|
127.41 |
% |
|
|
| Average non-performing loans/
Average total loans |
|
0.51 |
% |
|
|
|
|
1.61 |
% |
|
|
_______________(1) Includes loans held for
investment net of the allowance for credit losses and loans held
for sale. The average balance of the allowance for loan losses was
$54.9 million, $51.9 million, and $82.1 million in the three months
ended December 31, 2022, September 30, 2022 and December 31, 2021,
respectively, and $57.5 million and $101.1 million in the years
ended December 31, 2022 and 2021, respectively. The average balance
of total loans held for sale was $78.3 million, $142.5 million and
$206.8 million in the three months ended December 31, 2022,
September 30, 2022 and December 31, 2021, respectively, and $117.6
million and $72.7 million in the years ended December 31, 2022 and
2021, respectively.(2) Includes average non-performing
loans of $25.5 million, $25.3 million and $63.0 million for the
three months ended December 31, 2022, September 30, 2022 and
December 31, 2021, respectively, and $30.7 million and $90.6
million for the years ended December 31, 2022 and 2021,
respectively. (3) Includes the average balance of net
unrealized gains and losses in the fair value of debt securities
available for sale. The average balance includes average net
unrealized losses of $120.1 million and $72.4 million in the three
months ended December 31, 2022 and September 30, 2022,
respectively, and average net unrealized gains of $20.2 million in
the three months ended December 31, 2021. The average balance also
includes average net unrealized losses of $62.3 million in the year
ended December 31, 2022, and average unrealized net gains of $26.6
million in the year ended December 31, 2021.
(4) Includes nontaxable securities with average
balances of $19.8 million, $17.1 million and $17.7 million for the
three months ended December 31, 2022, September 30, 2022 and
December 31, 2021, respectively, and $18.4 million and $46.2
million in the year ended December 31, 2022 and 2021, respectively.
The tax equivalent yield for these nontaxable securities was 4.26%,
2.69% and 1.79% for the three months ended December 31, 2022,
September 30, 2022 and December 31, 2021, respectively, and 3.00%
and 1.76% for the years ended December 31, 2022 and 2021,
respectively. In 2022 and 2021, the tax equivalent yields were
calculated by assuming a 21% tax rate and dividing the actual yield
by 0.79.(5) Includes nontaxable securities with
average balances of $45.7 million, $41.9 million and $96.4 million
for the three months ended December 31, 2022, September 30, 2022
and December 31, 2021, respectively, and $43.6 million and $50.2
million in the years ended December 31, 2022 and 2021,
respectively. The tax equivalent yield for these nontaxable
securities was 3.88%, 3.48% and 3.20% for the three months ended
December 31, 2022, September 30, 2022 and December 31, 2021,
respectively, and 3.46% and 2.58% for the years ended December 31,
2022 and 2021, respectively. In 2022 and 2021, the tax equivalent
yields were calculated assuming a 21% tax rate and dividing the
actual yield by 0.79. (6) Excludes the allowance for
credit losses.(7) The terms of the FHLB advance
agreements require the Bank to maintain certain investment
securities or loans as collateral for these
advances.(8) NIM is defined as net interest income
divided by average interest-earning assets, which are loans,
securities, deposits with banks and other financial assets which
yield interest or similar income.(9) Calculated
based upon the average balance of total noninterest bearing and
interest bearing deposits.
Exhibit 4 - Noninterest
Income
This table shows
the amounts of each of the categories of noninterest income for the
periods presented.
| |
Three Months Ended |
|
Year Ended December 31, |
| |
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
(audited) |
| (in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
| |
|
|
|
|
|
|
|
|
Deposits and service fees |
$ |
4,766 |
|
19.6 |
% |
|
$ |
4,629 |
|
29.0 |
% |
|
$ |
4,521 |
|
5.9 |
% |
|
$ |
18,592 |
|
27.6 |
% |
|
$ |
17,214 |
|
14.3 |
% |
| Brokerage, advisory and
fiduciary activities |
|
4,054 |
|
16.6 |
% |
|
|
4,619 |
|
29.0 |
% |
|
|
4,987 |
|
6.5 |
% |
|
|
17,708 |
|
26.3 |
% |
|
|
18,616 |
|
15.4 |
% |
| Change in cash surrender value
of bank owned life insurance (“BOLI”)(1) |
|
1,378 |
|
5.7 |
% |
|
|
1,352 |
|
8.5 |
% |
|
|
1,366 |
|
1.8 |
% |
|
|
5,406 |
|
8.0 |
% |
|
|
5,459 |
|
4.5 |
% |
| Cards and trade finance
servicing fees |
|
556 |
|
2.3 |
% |
|
|
622 |
|
3.9 |
% |
|
|
503 |
|
0.7 |
% |
|
|
2,276 |
|
3.4 |
% |
|
|
1,771 |
|
1.5 |
% |
| Gain (loss) on early
extinguishment of FHLB advances, net |
|
11,390 |
|
46.8 |
% |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
10,678 |
|
15.9 |
% |
|
|
(2,488 |
) |
(2.1 |
)% |
| Gain on sale of Headquarters
Building (2) |
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
62,387 |
|
80.7 |
% |
|
|
— |
|
— |
% |
|
|
62,387 |
|
51.7 |
% |
| Securities (losses) gains, net
(3) |
|
(3,364 |
) |
(13.8 |
)% |
|
|
1,508 |
|
9.5 |
% |
|
|
(117 |
) |
(0.2 |
)% |
|
|
(3,689 |
) |
(5.5 |
)% |
|
|
3,740 |
|
3.1 |
% |
| Derivative gains (losses), net
(4) |
|
1,040 |
|
4.3 |
% |
|
|
(95 |
) |
(0.6 |
)% |
|
|
— |
|
— |
% |
|
|
455 |
|
0.7 |
% |
|
|
— |
|
— |
% |
| Loan-level derivative income
(5) |
|
3,413 |
|
14.0 |
% |
|
|
2,786 |
|
17.5 |
% |
|
|
1,973 |
|
2.6 |
% |
|
|
10,360 |
|
15.4 |
% |
|
|
3,951 |
|
3.3 |
% |
| Other noninterest income
(6)(7) |
|
1,132 |
|
4.5 |
% |
|
|
535 |
|
3.2 |
% |
|
|
1,670 |
|
2.2 |
% |
|
|
5,491 |
|
8.2 |
% |
|
|
9,971 |
|
8.3 |
% |
|
Total noninterest income |
$ |
24,365 |
|
100.0 |
% |
|
$ |
15,956 |
|
100.0 |
% |
|
$ |
77,290 |
|
100.0 |
% |
|
$ |
67,277 |
|
100.0 |
% |
|
$ |
120,621 |
|
100.0 |
% |
__________________(1) Changes in cash surrender
value of BOLI are not taxable.(2) The Company sold
its Coral Gables headquarters for $135.0 million, with an
approximate carrying value of $69.9 million at the time of sale and
transaction costs of $2.6 million. The Company leased-back the
property for an 18-year term.(3) Includes: (i) net loss
on sale of debt securities of $2.5 million in the three months
ended December 31, 2022 and net gain on sale of debt securities of
$22 thousand and $37 thousand in the three months ended September
30, 2022 and December 31, 2021, respectively, and net loss on sale
of debt securities of $2.4 million and net gains on sale of debt
securities of $4.3 million in the years ended December 31, 2022 and
2021, respectively, and (ii) unrealized losses of
$0.8 million, unrealized gains of $1.5 million, and
unrealized losses of $0.1 million in the three months ended
December 31, 2022, September 30, 2022, and December 31, 2021,
respectively, and unrealized losses of $1.3 million and $0.6
million in the years ended December 31, 2022 and 2021,
respectively, related to the change in fair value of marketable
equity securities. In addition, in the three months and the year
ended December 31, 2021, includes a realized loss of $42 thousand
on the sale of a mutual fund with a fair value of $23.4 million at
the time of the sale.(4) Income from interest rate
swaps and other derivative transactions with customers. The Company
incurred expenses related to derivative transactions with customers
of $3.3 million, $1.8 million and $0.7 million in the three months
ended December 31, 2022, September 30, 2022 and December 31, 2021,
respectively, and $8.1 million and $0.8 million in the years ended
December 31, 2022 and 2021, respectively, which are included as
part of noninterest expenses under professional and other services
fees.(5) Net unrealized gains and losses related to
uncovered interest rate caps with clients.
(6) Includes mortgage banking income of $0.2
million, $0.1 million and $0.9 million in the three months ended
December 31, 2022, September 30, 2022 and December 31, 2021,
respectively, and $3.4 million and $1.7 million in the years ended
December 31, 2022 and 2021, respectively, related to Amerant
Mortgage. Other sources of income in the periods shown include from
foreign currency exchange transactions with customers and valuation
income on the investment balances held in the non-qualified
deferred compensation plan.(7) Beginning in the three
months ended March 31, 2022, rental income associated with the
subleasing of portions of the Company’s headquarters building is
presented as a reduction to rent expense under lease agreements
under occupancy and equipment cost (included as part of other
noninterest income in 2021 in connection with the previously-owned
headquarters building). In addition, in the three months and year
ended December 31, 2022, we had additional rental income in
connection with the sublease of the NYC office space. Total rental
income from subleases was $1.1 million, $0.7 million and
$0.6 million in the three months ended December 31, 2022,
September 30, 2022, and December 31, 2021, respectively, and
$3.3 million and $2.9 million in the years ended December
31, 2022 and 2021, respectively.
Exhibit 5 - Noninterest
Expense
This table shows the amounts of each of the categories of
noninterest expense for the periods presented.
| |
Three Months Ended |
|
Year Ended December 31, |
| |
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
2022 |
|
|
|
2021 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
(audited) |
| (in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
| |
|
|
|
|
|
|
|
|
Salaries and employee benefits (1) |
$ |
32,786 |
52.7 |
% |
|
$ |
30,109 |
53.7 |
% |
|
$ |
31,309 |
56.8 |
% |
|
$ |
123,510 |
51.2 |
% |
|
$ |
117,585 |
59.3 |
% |
| Occupancy and equipment
(2)(3) |
|
6,349 |
10.2 |
% |
|
|
6,559 |
11.7 |
% |
|
|
5,765 |
10.5 |
% |
|
|
27,393 |
11.3 |
% |
|
|
20,364 |
10.3 |
% |
| Professional and other
services fees (4) |
|
6,224 |
10.0 |
% |
|
|
5,045 |
9.0 |
% |
|
|
6,589 |
12.0 |
% |
|
|
22,142 |
9.2 |
% |
|
|
19,096 |
9.6 |
% |
| Loan-level derivative expense
(5) |
|
3,281 |
5.3 |
% |
|
|
1,810 |
3.2 |
% |
|
|
661 |
1.2 |
% |
|
|
8,146 |
3.4 |
% |
|
|
815 |
0.4 |
% |
| Telecommunications and data
processing |
|
3,622 |
5.8 |
% |
|
|
3,861 |
6.9 |
% |
|
|
3,897 |
7.1 |
% |
|
|
14,735 |
6.1 |
% |
|
|
14,949 |
7.5 |
% |
| Depreciation and amortization
(6) |
|
1,956 |
3.1 |
% |
|
|
1,481 |
2.6 |
% |
|
|
1,520 |
2.8 |
% |
|
|
5,883 |
2.4 |
% |
|
|
7,269 |
3.7 |
% |
| FDIC assessments and
insurance |
|
1,930 |
3.1 |
% |
|
|
1,746 |
3.1 |
% |
|
|
1,340 |
2.4 |
% |
|
|
6,598 |
2.7 |
% |
|
|
6,423 |
3.2 |
% |
| Loans held for sale valuation
(reversal) expense (7) |
|
— |
— |
% |
|
|
— |
— |
% |
|
|
— |
— |
% |
|
|
159 |
0.1 |
% |
|
|
— |
— |
% |
| Advertising expenses |
|
3,329 |
5.3 |
% |
|
|
2,066 |
3.7 |
% |
|
|
1,463 |
2.7 |
% |
|
|
11,620 |
4.8 |
% |
|
|
3,382 |
1.7 |
% |
| Other real estate owned
valuation expense (8) |
|
— |
— |
% |
|
|
234 |
0.4 |
% |
|
|
— |
— |
% |
|
|
3,408 |
1.4 |
% |
|
|
— |
— |
% |
| Contract termination costs
(9) |
|
— |
— |
% |
|
|
289 |
0.5 |
% |
|
|
— |
— |
% |
|
|
7,103 |
2.9 |
% |
|
|
— |
— |
% |
| Other operating expenses
(10) |
|
2,764 |
4.5 |
% |
|
|
2,913 |
5.2 |
% |
|
|
2,544 |
4.5 |
% |
|
|
10,716 |
4.5 |
% |
|
|
8,359 |
4.3 |
% |
|
Total noninterest expense (11) |
$ |
62,241 |
100.0 |
% |
|
$ |
56,113 |
100.0 |
% |
|
$ |
55,088 |
100.0 |
% |
|
$ |
241,413 |
100.0 |
% |
|
$ |
198,242 |
100.0 |
% |
__________(1) Includes severance expense of $1.2
million and $0.4 million in the three months ended December 31,
2022 and September 30, 2022, respectively, and $3.0 million and
$3.6 million in the years ended December 31, 2022 and 2021,
respectively. There were no significant severance expenses in the
three months ended December 31, 2021. Severance expenses in 2022
were primarily related to the elimination of certain support
functions due to the restructuring of business lines, as well
severance expenses in connection with changes in certain positions.
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. (2) In the three
months ended December 31, 2021, includes $0.5 million, related to
the lease termination of a branch in Fort Lauderdale, Florida in
2021. In addition, in the years ended December 31, 2022 and 2021
includes $1.6 million and $0.8 million, respectively, of ROU asset
impairment in connection with the closure of a branch in Pembroke
Pines, Florida in 2022 and with the lease of the NY loan production
office in 2021. (3) Beginning in the three months ended
March 31, 2022, rental income associated with the subleasing of
portions of the Company’s headquarters building is presented as a
reduction to rent expense under lease agreements under occupancy
and equipment cost (included as part of other noninterest income in
2021 in connection with the previously-owned headquarters
building). In addition, in the three months and year ended December
31, 2022, we had additional rental income in connection with the
sublease of the NYC office space. Total rental income from
subleases was $1.1 million, $0.7 million and $0.6 million
in the three months ended December 31, 2022, September 30, 2022,
and December 31, 2021, respectively, and $3.3 million and
$2.9 million in the years ended December 31, 2022 and 2021,
respectively.(4) Additional expenses consist of: (i)
expenses related to the engagement of FIS of $1.1 million, $1.0
million and $0.5 million in the three months ended December 31,
2022, September 30, 2022 and December 31, 2021, respectively, and
$2.9 million and $0.7 million in the years ended December 31, 2022
and 2021, respectively; (ii) $0.2 million in connection with
certain search and recruitment expenses in the year ended December
31, 2022; (iii) $0.1 million of costs associated with the
subleasing of the New York office space in the year ended December
31, 2022, and (iv) $0.6 million and $0.8 million of expenses in
connection with the merger and related transactions in the three
months and year ended December 31, 2021, respectively. (5)
Iincludes services fees in connection with our loan-level
derivative income generation activities.(6) In the
three months and year ended December 31, 2021, includes $0.2
million and $1.8 million, respectively, of depreciation expense
associated with Company’s previously-owned headquarters building.
No depreciation expense related to the headquarters building was
recorded in the three months ended December 31, 2022 and September
30, 2022, and in the year ended December 31, 2022, as this property
was sold and leased-back in the fourth quarter of 2021.(7)
Valuation allowance as a result of changes in the fair value
of loans held for sale carried at the lower of cost or fair
value.(8) Fair value adjustment related to one OREO
property in New York.(9) Contract termination and
related costs associated with third party vendors resulting from
the Company’s engagement of FIS.(10) In all of the
periods shown, includes charitable contributions, community
engagement, postage and courier expenses, provisions for possible
losses on contingent loans, and debits which mirror the valuation
income on the investment balances held in the non-qualified
deferred compensation plan in order to adjust the liability to
participants of the deferred compensation plan.(11)
Includes $2.7 million, $2.7 million, and $3.3 million in the
three months ended December 31, 2022, September 30, 2022 and
December 31, 2021, respectively, and $12.5 million and $7.1 million
in the years ended December 31, 2022 and 2021, respectively,
related to Amerant Mortgage, primarily consisting of salaries and
employee benefits, mortgage lending costs and professional and
other service fees.
Exhibit 6 - Consolidated Balance
Sheets
| (in thousands, except share
data) |
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
| Assets |
|
|
|
|
|
|
|
|
(audited) |
|
Cash and due from banks |
$ |
19,486 |
|
|
$ |
37,631 |
|
|
$ |
29,217 |
|
|
$ |
35,242 |
|
|
$ |
33,668 |
|
| Interest earning deposits with
banks |
|
228,955 |
|
|
|
218,354 |
|
|
|
303,030 |
|
|
|
234,709 |
|
|
|
240,540 |
|
| Restricted cash |
|
42,160 |
|
|
|
46,149 |
|
|
|
21,808 |
|
|
|
6,243 |
|
|
|
— |
|
|
Cash and cash equivalents |
|
290,601 |
|
|
|
302,134 |
|
|
|
354,055 |
|
|
|
276,194 |
|
|
|
274,208 |
|
| Securities |
|
|
|
|
|
|
|
|
|
| Debt securities available for
sale |
|
1,057,621 |
|
|
|
1,052,329 |
|
|
|
1,124,801 |
|
|
|
1,145,785 |
|
|
|
1,175,319 |
|
| Debt securities held to
maturity |
|
242,101 |
|
|
|
234,317 |
|
|
|
238,621 |
|
|
|
112,008 |
|
|
|
118,175 |
|
| Trading securities |
|
— |
|
|
|
112 |
|
|
|
103 |
|
|
|
— |
|
|
|
— |
|
| Equity securities with readily
determinable fair value not held for trading |
|
11,383 |
|
|
|
12,232 |
|
|
|
10,767 |
|
|
|
13,370 |
|
|
|
252 |
|
| Federal Reserve Bank and
Federal Home Loan Bank stock |
|
55,575 |
|
|
|
53,792 |
|
|
|
48,187 |
|
|
|
53,806 |
|
|
|
47,495 |
|
|
Securities |
|
1,366,680 |
|
|
|
1,352,782 |
|
|
|
1,422,479 |
|
|
|
1,324,969 |
|
|
|
1,341,241 |
|
| Loans held for sale, at lower
of cost or fair value (1) |
|
— |
|
|
|
— |
|
|
|
66,390 |
|
|
|
68,591 |
|
|
|
143,195 |
|
| Mortgage loans held for sale,
at fair value |
|
62,438 |
|
|
|
57,591 |
|
|
|
54,863 |
|
|
|
17,108 |
|
|
|
14,905 |
|
| Loans held for investment,
gross |
|
6,857,194 |
|
|
|
6,445,768 |
|
|
|
5,726,131 |
|
|
|
5,635,478 |
|
|
|
5,409,440 |
|
| Less: Allowance for credit
losses (2) |
|
83,500 |
|
|
|
53,711 |
|
|
|
52,027 |
|
|
|
56,051 |
|
|
|
69,899 |
|
|
Loans held for investment, net |
|
6,773,694 |
|
|
|
6,392,057 |
|
|
|
5,674,104 |
|
|
|
5,579,427 |
|
|
|
5,339,541 |
|
| Bank owned life insurance |
|
228,412 |
|
|
|
227,034 |
|
|
|
225,682 |
|
|
|
224,348 |
|
|
|
223,006 |
|
| Premises and equipment,
net |
|
41,772 |
|
|
|
41,220 |
|
|
|
39,091 |
|
|
|
37,929 |
|
|
|
37,860 |
|
| Deferred tax assets, net |
|
48,703 |
|
|
|
45,791 |
|
|
|
33,265 |
|
|
|
22,119 |
|
|
|
11,301 |
|
| Operating lease right-of-use
assets |
|
139,987 |
|
|
|
141,453 |
|
|
|
139,358 |
|
|
|
139,477 |
|
|
|
141,139 |
|
| Goodwill |
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
|
|
19,506 |
|
| Accrued interest receivable
and other assets (3) |
|
156,011 |
|
|
|
160,411 |
|
|
|
122,449 |
|
|
|
96,168 |
|
|
|
92,497 |
|
|
Total assets |
$ |
9,127,804 |
|
|
$ |
8,739,979 |
|
|
$ |
8,151,242 |
|
|
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
| Demand |
|
|
|
|
|
|
|
|
|
| Noninterest bearing |
$ |
1,367,664 |
|
|
$ |
1,318,960 |
|
|
$ |
1,298,954 |
|
|
$ |
1,318,294 |
|
|
$ |
1,183,251 |
|
| Interest bearing |
|
2,300,469 |
|
|
|
2,147,008 |
|
|
|
2,019,661 |
|
|
|
1,543,708 |
|
|
|
1,507,441 |
|
| Savings and money market |
|
1,647,811 |
|
|
|
1,735,713 |
|
|
|
1,629,830 |
|
|
|
1,581,412 |
|
|
|
1,602,339 |
|
| Time |
|
1,728,255 |
|
|
|
1,386,441 |
|
|
|
1,254,409 |
|
|
|
1,248,287 |
|
|
|
1,337,840 |
|
|
Total deposits |
|
7,044,199 |
|
|
|
6,588,122 |
|
|
|
6,202,854 |
|
|
|
5,691,701 |
|
|
|
5,630,871 |
|
| Advances from the Federal Home
Loan Bank |
|
906,486 |
|
|
|
981,005 |
|
|
|
830,524 |
|
|
|
980,047 |
|
|
|
809,577 |
|
| Senior notes |
|
59,210 |
|
|
|
59,131 |
|
|
|
59,052 |
|
|
|
58,973 |
|
|
|
58,894 |
|
| Subordinated notes |
|
29,284 |
|
|
|
29,241 |
|
|
|
29,199 |
|
|
|
29,156 |
|
|
|
— |
|
| Junior subordinated debentures
held by trust subsidiaries |
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
| Operating lease liabilities
(4) |
|
140,147 |
|
|
|
140,911 |
|
|
|
137,808 |
|
|
|
135,651 |
|
|
|
136,595 |
|
| Accounts payable, accrued
liabilities and other liabilities (5) |
|
178,574 |
|
|
|
181,693 |
|
|
|
116,177 |
|
|
|
96,734 |
|
|
|
106,411 |
|
|
Total liabilities |
|
8,422,078 |
|
|
|
8,044,281 |
|
|
|
7,439,792 |
|
|
|
7,056,440 |
|
|
|
6,806,526 |
|
| |
|
|
|
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
|
|
|
|
|
| Class A common stock |
|
3,382 |
|
|
|
3,376 |
|
|
|
3,375 |
|
|
|
3,434 |
|
|
|
3,589 |
|
| Additional paid in
capital |
|
194,694 |
|
|
|
191,970 |
|
|
|
190,337 |
|
|
|
208,109 |
|
|
|
262,510 |
|
| Retained earnings (2) |
|
590,375 |
|
|
|
588,495 |
|
|
|
570,588 |
|
|
|
565,963 |
|
|
|
553,167 |
|
| Accumulated other
comprehensive income |
|
(80,635 |
) |
|
|
(86,208 |
) |
|
|
(50,959 |
) |
|
|
(24,424 |
) |
|
|
15,217 |
|
|
Total stockholders' equity before noncontrolling interest |
|
707,816 |
|
|
|
697,633 |
|
|
|
713,341 |
|
|
|
753,082 |
|
|
|
834,483 |
|
| Noncontrolling interest |
|
(2,090 |
) |
|
|
(1,935 |
) |
|
|
(1,891 |
) |
|
|
(3,686 |
) |
|
|
(2,610 |
) |
|
Total stockholders' equity |
|
705,726 |
|
|
|
695,698 |
|
|
|
711,450 |
|
|
|
749,396 |
|
|
|
831,873 |
|
|
Total liabilities and stockholders' equity |
$ |
9,127,804 |
|
|
$ |
8,739,979 |
|
|
$ |
8,151,242 |
|
|
$ |
7,805,836 |
|
|
$ |
7,638,399 |
|
| |
|
|
|
|
|
|
|
|
|
__________(1) As of June 30, 2022, March 31, 2022
and December 31, 2021, consists of NYC real estate loans held for
sale carried at the lower of cost or estimated fair value. In the
third quarter of 2022, the Company transferred the NYC real estate
loans held for sale to the loans held for investment category. In
addition, as of June 30, 2022 and March 31, 2022, includes a
valuation allowance of $0.2 million and $0.5 million, respectively,
as a result of fair value adjustment. (2) In the fourth
quarter of 2022, the Company adopted the Current Expected Credit
Loss (“CECL”) accounting standard using a modified retrospective
approach. Therefore, prior periods have not been adjusted and are
not comparable. As of January 1, 2022, the beginning of the
reporting period of adoption, the Company recorded an increase to
its allowance for credit losses (“ACL”) of $18.7 million, with a
corresponding after tax cumulative effect adjustment to retained
earnings of $13.9 million. In addition, in the fourth quarter of
2022, the Company recorded the impact of CECL on its ACL in 2022
through a provision for credit losses of $11.1 million.(3)
As of December 31, 2022, September 30, 2022, June 30, 2022,
March 31, 2022 and December 31, 2021, include derivative assets
with a total fair value of $78.3 million, $78.3 million, $39.8
million, $24.3 million, and $21.9 million, respectively.(4)
Consists of total long-term lease liabilities. Total
short-term lease liabilities are included in other
liabilities.(5) As of December 31, 2022, September 30,
2022, June 30, 2022, March 31, 2022 and December 31, 2021, include
derivatives liabilities with a total fair value of $77.2 million,
$78.4 million, $39.7 million, $25.3 million and $22.2 million,
respectively.
Exhibit 7 -
LoansLoans by Type - Held For
Investment
The loan portfolio held for investment consists of the following
loan classes:
| (in thousands) |
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
| Real estate loans |
|
|
|
|
|
|
|
|
(audited) |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
1,615,716 |
|
|
$ |
1,600,281 |
|
|
$ |
1,530,293 |
|
|
$ |
1,570,006 |
|
|
$ |
1,540,590 |
|
|
Multi-family residential |
|
820,023 |
|
|
|
779,456 |
|
|
|
532,066 |
|
|
|
540,726 |
|
|
|
514,679 |
|
|
Land development and construction loans |
|
273,174 |
|
|
|
300,476 |
|
|
|
288,581 |
|
|
|
296,609 |
|
|
|
327,246 |
|
| |
|
2,708,913 |
|
|
|
2,680,213 |
|
|
|
2,350,940 |
|
|
|
2,407,341 |
|
|
|
2,382,515 |
|
|
Single-family residential |
|
1,102,845 |
|
|
|
978,674 |
|
|
|
727,712 |
|
|
|
707,594 |
|
|
|
661,339 |
|
|
Owner occupied |
|
1,046,450 |
|
|
|
992,948 |
|
|
|
954,538 |
|
|
|
927,921 |
|
|
|
962,538 |
|
| |
|
4,858,208 |
|
|
|
4,651,835 |
|
|
|
4,033,190 |
|
|
|
4,042,856 |
|
|
|
4,006,392 |
|
| Commercial loans (1) |
|
1,381,234 |
|
|
|
1,203,776 |
|
|
|
1,122,248 |
|
|
|
1,093,205 |
|
|
|
965,673 |
|
| Loans to financial
institutions and acceptances |
|
13,292 |
|
|
|
13,271 |
|
|
|
13,250 |
|
|
|
13,730 |
|
|
|
13,710 |
|
| Consumer loans and overdrafts
(2) |
|
604,460 |
|
|
|
576,886 |
|
|
|
557,443 |
|
|
|
485,687 |
|
|
|
423,665 |
|
| Total loans |
$ |
6,857,194 |
|
|
$ |
6,445,768 |
|
|
$ |
5,726,131 |
|
|
$ |
5,635,478 |
|
|
$ |
5,409,440 |
|
__________________(1) As of December 31, 2022,
September 30, 2022 and June 30, 2022, includes approximately $45.3
million, $31.7 million and $9.9 million, respectively, in
commercial loans and leases originated under a white-label
equipment financing solution launched in the second quarter of
2022.(2) As of December 31, 2022, September 30, 2022,
June 30, 2022, March 31, 2022 and December 31, 2022 includes $433.3
million, $496.6 million, $477.3 million, $395.7 million and $297.0
million, respectively, in consumer loans purchased under indirect
lending programs. In addition, as of December 31, 2022 and
September 30, 2022, includes $43.8 million and $6.3 million,
respectively, in consumer loans originated under a white-label
program.
Loans by Type - Held For Sale
The loan portfolio held for sale consists of the following loan
classes:
| (in thousands) |
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
| Loans held for sale at
the lower of fair value or cost |
|
|
|
|
|
|
|
|
(audited) |
| Real estate loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
— |
|
|
$ |
— |
|
|
$ |
44,568 |
|
|
$ |
46,947 |
|
|
$ |
110,271 |
|
|
Multi-family residential |
|
— |
|
|
|
— |
|
|
|
20,684 |
|
|
|
20,796 |
|
|
|
31,606 |
|
| |
|
— |
|
|
|
— |
|
|
|
65,252 |
|
|
|
67,743 |
|
|
|
141,877 |
|
|
Owner occupied |
|
— |
|
|
|
— |
|
|
|
1,297 |
|
|
|
1,306 |
|
|
|
1,318 |
|
|
Total real estate loans |
|
— |
|
|
|
— |
|
|
|
66,549 |
|
|
|
69,049 |
|
|
|
143,195 |
|
|
Less: valuation allowance |
|
— |
|
|
|
— |
|
|
|
159 |
|
|
|
458 |
|
|
|
— |
|
| Total loans held for sale at
the lower of fair value or cost (1) |
|
— |
|
|
|
— |
|
|
|
66,390 |
|
|
|
68,591 |
|
|
|
143,195 |
|
| Loans held for sale at
fair value |
|
|
|
|
|
|
|
|
|
|
Land development and construction loans |
|
9,424 |
|
|
|
5,560 |
|
|
|
2,366 |
|
|
|
836 |
|
|
|
— |
|
|
Single-family residential |
|
53,014 |
|
|
|
52,031 |
|
|
|
52,497 |
|
|
|
16,272 |
|
|
|
14,905 |
|
| Total loans held for sale at
fair value (2) |
|
62,438 |
|
|
|
57,591 |
|
|
|
54,863 |
|
|
|
17,108 |
|
|
|
14,905 |
|
|
Total loans held for sale (3) |
$ |
62,438 |
|
|
$ |
57,591 |
|
|
$ |
121,253 |
|
|
$ |
85,699 |
|
|
$ |
158,100 |
|
__________________(1) As of June 30, 2022, March 31,
2022 and December 31, 2021, consisted of New York real estate
loans. In the three months ended September 30, 2022, the Company
transferred the New York real estate loans held for sale to the
loans held for investment category. During the three months ended
March 31, 2022 and December 31, 2021, the Company sold $57.3
million and $49.4 million, respectively, in loans held for sale
carried at the lower of cost or estimated fair value related to the
New York portfolio. There were no sales of loans in this portfolio
during the three months ended September 30, 2022 and June 30,
2022.(2) Loans held for sale in connection with Amerant
Mortgage’s ongoing business.(3) Remained current and in
accrual status at each of the periods shown.
Non-Performing Assets
This table shows a summary of our non-performing assets by loan
class, which includes non-performing loans and other real estate
owned, or OREO, at the dates presented. Non-performing loans
consist of (i) nonaccrual loans; (ii) accruing loans 90
days or more contractually past due as to interest or principal;
and (iii) restructured loans that are considered TDRs.
| (in thousands) |
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
| Non-Accrual
Loans(1) |
|
|
|
|
|
|
|
|
(audited) |
| Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
20,057 |
|
|
$ |
— |
|
|
$ |
1,251 |
|
|
$ |
12,825 |
|
|
$ |
7,285 |
|
|
Multi-family residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
20,057 |
|
|
|
— |
|
|
|
1,251 |
|
|
|
12,825 |
|
|
|
7,285 |
|
|
Single-family residential |
|
1,526 |
|
|
|
1,465 |
|
|
|
2,755 |
|
|
|
3,717 |
|
|
|
5,126 |
|
|
Owner occupied |
|
6,270 |
|
|
|
6,357 |
|
|
|
9,558 |
|
|
|
10,770 |
|
|
|
8,665 |
|
| |
|
27,853 |
|
|
|
7,822 |
|
|
|
13,564 |
|
|
|
27,312 |
|
|
|
21,076 |
|
| Commercial loans (2) (3) |
|
9,271 |
|
|
|
9,715 |
|
|
|
8,987 |
|
|
|
19,178 |
|
|
|
28,440 |
|
| Consumer loans and overdrafts
(4) |
|
4 |
|
|
|
947 |
|
|
|
2,398 |
|
|
|
468 |
|
|
|
257 |
|
| Total Non-Accrual
Loans |
$ |
37,128 |
|
|
$ |
18,484 |
|
|
$ |
24,949 |
|
|
$ |
46,958 |
|
|
$ |
49,773 |
|
| |
|
|
|
|
|
|
|
|
|
| Past Due Accruing
Loans(5) |
|
|
|
|
|
|
|
|
|
| Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
|
Single-family residential |
|
253 |
|
|
|
4 |
|
|
|
162 |
|
|
|
— |
|
|
|
— |
|
| Commercial |
|
183 |
|
|
|
245 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Consumer loans and
overdrafts |
|
35 |
|
|
|
7 |
|
|
|
42 |
|
|
|
10 |
|
|
|
8 |
|
| Total Past Due
Accruing Loans |
|
471 |
|
|
|
256 |
|
|
|
204 |
|
|
|
10 |
|
|
|
8 |
|
| Total Non-Performing
Loans |
|
37,599 |
|
|
|
18,740 |
|
|
|
25,153 |
|
|
|
46,968 |
|
|
|
49,781 |
|
| Other Real Estate
Owned |
|
— |
|
|
|
6,312 |
|
|
|
6,545 |
|
|
|
9,720 |
|
|
|
9,720 |
|
| Total Non-Performing
Assets |
$ |
37,599 |
|
|
$ |
25,052 |
|
|
$ |
31,698 |
|
|
$ |
56,688 |
|
|
$ |
59,501 |
|
__________________(1) Prior to the adoption of
CECL in the fourth quarter of 2022, included loan modifications
that met the definition of TDRs which may be performing in
accordance with their modified loan terms. As of June 30, 2022,
March 31, 2022 and December 31, 2021, non-performing TDRs included
$8.3 million, $8.6 million, and $9.1 million, respectively, in a
multiple loan relationship to a South Florida borrower. In the
third quarter of 2022, this loan relationship was upgraded and
placed back in accrual status.(2) As of March 31,
2022 and December 31, 2021, includes $9.1 million in a commercial
relationship placed in nonaccrual status during the second quarter
of 2020. During the third quarters of 2021 and 2020, the Company
charged off $5.7 million and $19.3 million, respectively, against
the allowance for loan losses as result of the deterioration of
this commercial relationship. In addition, in connection with this
loan relationship, the Company collected a partial principal
payment of $4.8 million in the fourth quarter of 2021. Furthermore,
in the second quarter of 2022, the Company collected an additional
partial principal payment of $5.5 million and charged off the
remaining balance of $3.6 million against the allowance for loans
losses. Therefore, as of December 31, 2022, September 30, 2022 and
June 30, 2022, there were no outstanding balances associated with
this loan relationship.(3) In the first quarter of
2022, the Company collected a partial payment of approximately
$9.8 million on one commercial nonaccrual loan of
$12.4 million. Also, in the first quarter of 2022, the Company
charged off the remaining balance of this loan of $2.5 million
against its specific reserve at December 31,
2021.(4) In the fourth quarter of 2022, the
Company changed its charge-off policy for unsecured consumer loans
from 120 to 90 days past due. This change resulted in an additional
$3.4 million in charge-off for unsecured consumer loans in the
fourth quarter of 2022.(5) 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 not purchased credit-impaired loans.
| |
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
| |
|
|
|
|
|
|
|
|
|
|
(audited) |
| (in thousands) |
SpecialMention |
Substandard |
Doubtful |
Total(1) |
|
SpecialMention |
Substandard |
Doubtful |
Total(1) |
|
SpecialMention |
Substandard |
Doubtful |
Total(1) |
| Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate (CRE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
8,378 |
$ |
20,113 |
$ |
— |
$ |
28,491 |
|
$ |
37,364 |
$ |
— |
$ |
— |
$ |
37,364 |
|
$ |
34,205 |
$ |
5,890 |
$ |
1,395 |
$ |
41,490 |
|
Multi-family residential |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
Land development and construction loans |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
| |
|
8,378 |
|
20,113 |
|
— |
|
28,491 |
|
|
37,364 |
|
— |
|
— |
|
37,364 |
|
|
34,205 |
|
5,890 |
|
1,395 |
|
41,490 |
|
Single-family residential |
|
— |
|
1,930 |
|
— |
|
1,930 |
|
|
— |
|
1,717 |
|
— |
|
1,717 |
|
|
— |
|
5,221 |
|
— |
|
5,221 |
|
Owner occupied |
|
— |
|
6,356 |
|
— |
|
6,356 |
|
|
— |
|
6,445 |
|
— |
|
6,445 |
|
|
7,429 |
|
8,759 |
|
— |
|
16,188 |
| |
|
8,378 |
|
28,399 |
|
— |
|
36,777 |
|
|
37,364 |
|
8,162 |
|
— |
|
45,526 |
|
|
41,634 |
|
19,870 |
|
1,395 |
|
62,899 |
| Commercial loans (2) |
|
1,749 |
|
10,446 |
|
3 |
|
12,198 |
|
|
1,800 |
|
10,942 |
|
3 |
|
12,745 |
|
|
32,452 |
|
20,324 |
|
9,497 |
|
62,273 |
| Consumer loans and
overdrafts |
|
— |
|
230 |
|
— |
|
230 |
|
|
— |
|
947 |
|
— |
|
947 |
|
|
— |
|
270 |
|
— |
|
270 |
| |
$ |
10,127 |
$ |
39,075 |
$ |
3 |
$ |
49,205 |
|
$ |
39,164 |
$ |
20,051 |
$ |
3 |
$ |
59,218 |
|
$ |
74,086 |
$ |
40,464 |
$ |
10,892 |
$ |
125,442 |
__________(1) There were no loans categorized as
“Loss” as of the dates presented.(2) Loan balances as
of December 31, 2021 include $9.1 million in a commercial
relationship placed in nonaccrual status and downgraded during the
second quarter of 2020. As of December 31, 2021, Substandard loans
include $4.9 million and doubtful loans include $4.2 million,
related to this commercial relationship. During the third quarters
of 2021 and 2020, the Company charged off $5.7 million and $19.3
million, respectively, against the allowance for loan losses as
result of the deterioration of this commercial relationship. In
addition, in connection with this loan relationship, the Company
collected a partial principal payment of $4.8 million in the fourth
quarter of 2021. Furthermore, in the second quarter of 2022, the
Company collected an additional partial principal payment of $5.5
million and charged off the remaining balance of $3.6 million
against the allowance for loans losses. Therefore, as of December
31, 2022 and September 30, 2022, there were no outstanding balances
associated with this loan relationship.
Exhibit 8 - Deposits by Country of
Domicile
This table shows the Company’s deposits by country of domicile
of the depositor as of the dates presented.
| (in thousands) |
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
| |
|
|
|
|
|
|
|
|
(audited) |
|
Domestic |
$ |
4,620,906 |
|
|
$ |
4,166,281 |
|
|
$ |
3,722,433 |
|
|
$ |
3,180,112 |
|
|
$ |
3,137,258 |
|
| Foreign: |
|
|
|
|
|
|
|
|
|
|
Venezuela |
|
1,911,551 |
|
|
|
1,931,330 |
|
|
|
1,964,796 |
|
|
|
2,004,305 |
|
|
|
2,019,480 |
|
|
Others |
|
511,742 |
|
|
|
490,511 |
|
|
|
515,625 |
|
|
|
507,284 |
|
|
|
474,133 |
|
| Total foreign |
|
2,423,293 |
|
|
|
2,421,841 |
|
|
|
2,480,421 |
|
|
|
2,511,589 |
|
|
|
2,493,613 |
|
| Total deposits |
$ |
7,044,199 |
|
|
$ |
6,588,122 |
|
|
$ |
6,202,854 |
|
|
$ |
5,691,701 |
|
|
$ |
5,630,871 |
|
|
CONTACTS: |
| Investors |
| Laura Rossi |
|
InvestorRelations@amerantbank.com |
| (305) 460-8728 |
| |
| Media |
| Victoria Verdeja |
|
MediaRelations@amerantbank.com |
| (305) 441-8414 |
Amerant Bancorp (NASDAQ:AMTB)
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