Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”)
today reported net income attributable to the Company of $7.3
million in the second quarter of 2023, or $0.22 per diluted share,
compared to net income attributable to the Company of $20.2
million, or $0.60 per diluted share, in the first quarter of 2023.
“Achieving strong organic deposit growth was a
significant accomplishment this quarter” stated Jerry Plush,
Chairman and CEO. “While elevated reserve coverage levels were
needed related to a legacy NY based commercial real estate loan
along with updated economic forecasts, we continued to show solid
growth in pre-provision net revenue, driven primarily by a strong
net interest margin. We remain keenly focused on driving profitable
growth and achieving our goal of becoming the bank of choice in the
markets we serve.”
- Total assets increased $24.2 million, or 0.3%, to $9.5 billion
compared to 1Q23.
- Total gross loans increased $101.9
million, or 1.4%, to $7.22 billion compared to $7.12 billion in
1Q23.
- Cash and cash equivalents were
$445.1 million, down $40.7 million, or 8.4%, compared to $485.8
million in 1Q23.
- Total deposits were $7.58 billion, up $292.8 million, or 4.0%,
compared to $7.29 billion in 1Q23. Organic deposit growth in
commercial, consumer and international banking was $432 million,
which enabled reductions in brokered deposits and institutional
deposits of $52 million and $136 million, respectively.
- Total advances from Federal Home Loan Bank (“FHLB”) were $770.0
million, down $282.0 million, or 26.8%, compared to $1.1 billion in
1Q23, the result of early repayments of $355 million in the quarter
in connection with asset/liability management strategies. An
additional $2.1 billion remained available from FHLB as of June 30,
2023.
- Average yield on loans increased to
6.79% in 2Q23, compared to 6.38% in 1Q23.
- Total non-performing assets
increased to $67.4 million, up $18.7 million, or 38.3%, compared to
$48.7 million as of 1Q23.
- The allowance for credit losses
("ACL") was $106.0 million, an increase of $21.6 million, or 25.6%,
compared to $84.4 million as of 1Q23.
- Core deposits were $5.50 billion, up $140.6 million, or 2.6%,
compared to $5.36 billion in 1Q23.
- Average cost of total deposits increased to 2.40% in 2Q23
compared to 1.91% in 1Q23.
- Loan to deposit ratio improved to 95.22% in 2Q23 compared to
97.64% in 1Q23.
- Assets Under Management and custody
(“AUM”) totaled $2.15 billion, slightly up $39.9 million, or 1.9%,
from $2.11 billion in 1Q23.
- Pre-provision net revenue
(“PPNR”)(1) was $38.3 million in 2Q23, an increase of $1.1 million
or 2.9%, compared to $37.2 million in 1Q23.
- Core Pre-Provision Net Revenue
(“Core PPNR”)(1) was $39.2 million in 2Q23, up $2.1 million, or
5.6%, from $37.1 million in 1Q23.
- Net Interest Margin (“NIM”) was
3.83% in 2Q23 compared to 3.90% in 1Q23.
- Net Interest Income (“NII”) was
$83.9 million, up $1.5 million, or 1.9%, from $82.3 million in
1Q23.
- Provision for credit losses was
$29.1 million in 2Q23, up $17.4 million, or 148.5%, compared to
$11.7 million in 1Q23. The provision for credit losses in 2Q23 was
comprised of $15.7 million in connection with charge-offs and
credit quality, $1.4 million related to loan growth and $12.0
million to reflect updated economic factors.
- Non-interest income was $26.6
million in 2Q23, up $7.3 million, or 37.6%, from $19.3 million in
1Q23. 2Q23 included $12.4 million in non-routine net gains.
- Non-interest expense was $72.5
million, up $7.8 million, or 12.0%, from $64.7 million in 1Q23.
2Q23 included $13.4 million in non-routine noninterest
expenses.
- The efficiency ratio was 65.6% in
2Q23 compared to 63.7% in 1Q23.
- Return on average assets (“ROA”)
was 0.31% in 2Q23 compared to 0.88% in 1Q23.
- Return on average equity (“ROE”)
was 3.92% in 2Q23 compared to 11.15% in 1Q23.
Additional details on second quarter 2023
results can be found in Exhibits to this earnings release, and the
earnings presentation available under the Investor Relations
section of the Company’s website at
https://investor.amerantbank.com.
On July 19, 2023, the Company’s board of
directors declared a quarterly cash dividend of $0.09 per common
share. The dividend is payable on August 31, 2023 to shareholders
of record on August 15, 2023.
1 Non-GAAP measure, see “Non-GAAP Financial
Measures” for more information and Exhibit 2 for a reconciliation
to GAAP.
Second Quarter 2023 Earnings Conference
Call
The Company will hold an earnings conference
call on Friday, July 21, 2023 at 9:00 a.m. (Eastern Time) to
discuss its second quarter 2023 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 – 17
in South Florida and 6 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, 2022 filed on March 1, 2023 (the “Form 10-K”),
our quarterly report on Form 10-Q for the quarter ended March 31,
2023 filed on May 2, 2023, and in our other filings with the U.S.
Securities and Exchange Commission (the “SEC”), which are available
at the SEC’s website www.sec.gov.
Interim Financial
Information
Unaudited financial information as of and for
interim periods, including the three and six month periods ended
June 30, 2023 and 2022 and the three months ended March 31, 2023
and December 31, 2022, may not reflect our results of operations
for our fiscal year ending, or financial condition, as of December
31, 2023, or any other period of time or date.
As previously disclosed in the Form 10-K, the
Company adopted the new guidance on accounting for current expected
credit losses on financial instruments (“CECL”) effective as of
January 1, 2022. Quarterly amounts previously reported on our
quarterly reports on Form 10-Q for the periods ended March 31,
2022, June 30, 2022 and September 30, 2022 do not reflect the
adoption of CECL. In the fourth quarter of 2022, the Company
recorded a provision for credit losses totaling $20.9 million,
including $11.1 million related to the retroactive effect of
adopting CECL for all previous quarterly periods in the year ended
December 31, 2022, including loan growth and changes to
macro-economic conditions during the period. Quarterly amounts
included in the Form 10-K and this earnings release and
accompanying presentation reflect the impacts of the adoption of
CECL on each interim period of 2022. See the Form 10-K for more
details on the adoption of CECL.
The following table shows changes to
previously-reported amounts for the quarter ended December 31, 2022
versus the corresponding amounts reflecting the adoption of CECL in
2022:
| (in thousands, except per
share amounts) |
As Reported |
|
As Recast |
|
Changes |
|
Total interest income |
$ |
113,374 |
|
|
$ |
113,374 |
|
|
$ |
— |
|
| Total interest expense |
|
31,196 |
|
|
|
31,196 |
|
|
|
— |
|
| Net interest income |
|
82,178 |
|
|
|
82,178 |
|
|
|
— |
|
| Provision for credit
losses |
|
20,945 |
|
|
|
16,857 |
|
|
|
(4,088 |
) |
| Net interest income after
provision for credit losses |
|
61,233 |
|
|
|
65,321 |
|
|
|
4,088 |
|
| Total noninterest income |
|
24,365 |
|
|
|
24,365 |
|
|
|
— |
|
| Total noninterest expense |
|
62,241 |
|
|
|
62,241 |
|
|
|
— |
|
| Income before income
taxes |
|
23,357 |
|
|
|
27,445 |
|
|
|
4,088 |
|
| Income tax expense |
|
(4,746 |
) |
|
|
(5,627 |
) |
|
|
(881 |
) |
| Net income before attribution
of noncontrolling interest |
|
18,611 |
|
|
|
21,818 |
|
|
|
3,207 |
|
| Noncontrolling interest |
|
(155 |
) |
|
|
(155 |
) |
|
|
— |
|
| Net income attributable to
Amerant Bancorp Inc. |
$ |
18,766 |
|
|
$ |
21,973 |
|
|
$ |
3,207 |
|
| Basic earnings per common
share |
$ |
0.56 |
|
|
$ |
0.66 |
|
|
$ |
0.10 |
|
| Diluted earnings per common
share |
$ |
0.55 |
|
|
$ |
0.65 |
|
|
$ |
0.10 |
|
| Cash dividends declared per
common share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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”, “tangible stockholders’ equity (book
value) per common share”, “tangible common equity ratio, adjusted
for unrealized losses on debt securities held to maturity”, and
“tangible stockholders' equity (book value) per common share,
adjusted for unrealized losses on debt securities held to
maturity”. This supplemental information is not required by, or is
not presented in accordance with GAAP. The Company refers to these
financial measures and ratios as “non-GAAP financial measures” and
they should not be considered in isolation or as a substitute for
the GAAP measures presented herein.
We use certain non-GAAP financial measures,
including those mentioned above, both to explain our results to
shareholders and the investment community and in the internal
evaluation and management of our businesses. Our management
believes that these non-GAAP financial measures and the information
they provide are useful to investors since these measures permit
investors to view our performance using the same tools that our
management uses to evaluate our past performance and prospects for
future performance, especially in light of the additional costs we
have incurred in connection with the Company’s restructuring
activities that began in 2018 and continued in 2023, including the
effect of non-core banking activities such as the sale of loans and
securities and other repossessed assets, the valuation of
securities, derivatives, loans held for sale and other real estate
owned and repossessed assets, the early repayment of FHLB advances,
impairment of investments, and other non-routine actions intended
to improve customer service and operating performance. While we
believe that these non-GAAP financial measures are useful
in evaluating our performance, this information should be
considered as supplemental and not as a substitute for or superior
to the related financial information prepared in accordance with
GAAP. Additionally, these non-GAAP financial measures may
differ from similar measures presented by other companies.
Exhibit 2 reconciles these non-GAAP financial
measures to reported results.
Exhibit 1- Selected Financial
Information
The following table sets forth selected financial information
derived from our interim unaudited and annual audited consolidated
financial statements.
| (in thousands) |
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
| Consolidated Balance
Sheets |
|
|
|
|
(audited) |
|
Total assets |
$ |
9,519,526 |
|
|
$ |
9,495,302 |
|
|
$ |
9,127,804 |
|
| Total investments |
|
1,315,303 |
|
|
|
1,347,697 |
|
|
|
1,366,680 |
|
| Total gross loans (1) |
|
7,216,958 |
|
|
|
7,115,035 |
|
|
|
6,919,632 |
|
| Allowance for credit
losses |
|
105,956 |
|
|
|
84,361 |
|
|
|
83,500 |
|
| Total deposits |
|
7,579,571 |
|
|
|
7,286,726 |
|
|
|
7,044,199 |
|
| Core deposits (2) |
|
5,498,017 |
|
|
|
5,357,386 |
|
|
|
5,315,944 |
|
| Advances from the Federal Home
Loan Bank |
|
770,000 |
|
|
|
1,052,012 |
|
|
|
906,486 |
|
| Senior notes |
|
59,368 |
|
|
|
59,289 |
|
|
|
59,210 |
|
| Subordinated notes |
|
29,369 |
|
|
|
29,326 |
|
|
|
29,284 |
|
| Junior subordinated
debentures |
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
| Stockholders' equity
(3)(4) |
|
720,956 |
|
|
|
729,056 |
|
|
|
705,726 |
|
| Assets under management and
custody (5) |
|
2,147,465 |
|
|
|
2,107,603 |
|
|
|
1,995,666 |
|
| |
Three Months Ended |
| (in thousands, except
percentages, share data and per share amounts) |
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
| Consolidated Results
of Operations |
|
|
|
|
|
|
Net interest income |
$ |
83,877 |
|
|
$ |
82,333 |
|
|
$ |
82,178 |
|
| Provision for credit losses
(6) |
|
29,077 |
|
|
|
11,700 |
|
|
|
16,857 |
|
| Noninterest income |
|
26,619 |
|
|
|
19,343 |
|
|
|
24,365 |
|
| Noninterest expense |
|
72,500 |
|
|
|
64,733 |
|
|
|
62,241 |
|
| Net income attributable to
Amerant Bancorp Inc. (6) (7) |
|
7,308 |
|
|
|
20,186 |
|
|
|
21,973 |
|
| Effective income tax rate
(6) |
|
21.00% |
|
|
|
21.00% |
|
|
|
20.50% |
|
| |
|
|
|
|
|
| Common Share
Data |
|
|
|
|
|
| Stockholders' book value per
common share |
$ |
21.37 |
|
|
$ |
21.56 |
|
|
$ |
20.87 |
|
| Tangible stockholders' equity
(book value) per common share (8) |
$ |
20.66 |
|
|
$ |
20.84 |
|
|
$ |
20.19 |
|
| Tangible stockholders' equity
(book value) per common share, adjusted for unrealized losses on
debt securities held to maturity (8) |
$ |
20.11 |
|
|
$ |
20.38 |
|
|
$ |
19.65 |
|
| Basic earnings per common
share (6) |
$ |
0.22 |
|
|
$ |
0.60 |
|
|
$ |
0.66 |
|
| Diluted earnings per common
share (6)(9) |
$ |
0.22 |
|
|
$ |
0.60 |
|
|
$ |
0.65 |
|
| Basic weighted average shares
outstanding |
|
33,564,770 |
|
|
|
33,559,718 |
|
|
|
33,496,096 |
|
| Diluted weighted average
shares outstanding (9) |
|
33,717,702 |
|
|
|
33,855,994 |
|
|
|
33,813,593 |
|
| Cash dividend declared per
common share (4) |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
| |
Three Months Ended |
| |
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
| Other Financial and
Operating Data (10) |
|
|
|
|
|
| |
|
|
|
|
|
| Profitability
Indicators (%) |
|
|
|
|
|
|
Net interest income / Average total interest earning assets (NIM)
(11) |
3.83% |
|
|
3.90% |
|
|
3.96% |
|
| Net income / Average total
assets (ROA) (6) (12) |
0.31% |
|
|
0.88% |
|
|
0.97% |
|
| Net income / Average
stockholders' equity (ROE) (6)(13) |
3.92% |
|
|
11.15% |
|
|
12.10% |
|
| Noninterest income / Total
revenue (14) |
24.09% |
|
|
19.02% |
|
|
22.87% |
|
| |
|
|
|
|
|
| Capital Indicators
(%) |
|
|
|
|
|
| Total capital ratio (15) |
12.41% |
|
|
12.36% |
|
|
12.39% |
|
| Tier 1 capital ratio (16) |
10.79% |
|
|
10.88% |
|
|
10.89% |
|
| Tier 1 leverage ratio
(17) |
8.91% |
|
|
9.04% |
|
|
9.18% |
|
| Common equity tier 1 capital
ratio (CET1) (18) |
10.02% |
|
|
10.10% |
|
|
10.10% |
|
| Tangible common equity ratio
(19) |
7.34% |
|
|
7.44% |
|
|
7.50% |
|
| Tangible common equity ratio,
adjusted for unrealized losses on debt securities held to maturity
(20) |
7.16% |
|
|
7.29% |
|
|
7.31% |
|
| |
|
|
|
|
|
| Liquidity Ratios
(%) |
|
|
|
|
|
| Loans to Deposits (21) |
95.22% |
|
|
97.64% |
|
|
98.23% |
|
| |
|
|
|
|
|
| Asset Quality
Indicators (%) |
|
|
|
|
|
| Non-performing assets / Total
assets (22) |
0.71% |
|
|
0.51% |
|
|
0.41% |
|
| Non-performing loans / Total
gross loans (1) (23) |
0.65% |
|
|
0.31% |
|
|
0.54% |
|
| Allowance for credit losses /
Total non-performing loans (23) |
224.51% |
|
|
380.31% |
|
|
222.08% |
|
| Allowance for credit losses /
Total loans held for investment |
1.48% |
|
|
1.20% |
|
|
1.22% |
|
| Net charge-offs /
Average total loans held for investment (24) |
0.42% |
|
|
0.64% |
|
|
0.59% |
|
| |
|
|
|
|
|
| Efficiency Indicators
(% except FTE) |
|
|
|
|
|
| Noninterest expense / Average
total assets |
3.06% |
|
|
2.82% |
|
|
2.75% |
|
| Salaries and employee benefits
/ Average total assets |
1.45% |
|
|
1.52% |
|
|
1.45% |
|
| Other operating expenses/
Average total assets (25) |
1.62% |
|
|
1.30% |
|
|
1.30% |
|
| Efficiency ratio (26) |
65.61% |
|
|
63.67% |
|
|
58.42% |
|
| Full-Time-Equivalent Employees
(FTEs) (27) |
710 |
|
|
722 |
|
|
692 |
|
| |
Three Months Ended |
| (in thousands, except
percentages and per share amounts) |
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
| Core Selected
Consolidated Results of Operations and Other Data (8) |
|
|
|
|
|
| |
|
|
|
|
|
|
Pre-provision net revenue (PPNR) |
$ |
38,258 |
|
|
$ |
37,187 |
|
|
$ |
44,457 |
|
| Core pre-provision net revenue
(Core PPNR) |
$ |
39,196 |
|
|
$ |
37,103 |
|
|
$ |
37,838 |
|
| Core net income (6) |
$ |
8,048 |
|
|
$ |
20,120 |
|
|
$ |
16,817 |
|
| Core basic earnings per common
share (6) |
|
0.24 |
|
|
|
0.60 |
|
|
|
0.50 |
|
| Core earnings per diluted
common share (6) (9) |
|
0.24 |
|
|
|
0.59 |
|
|
|
0.50 |
|
| Core net income / Average
total assets (Core ROA) (6) (12) |
|
0.34% |
|
|
|
0.88% |
|
|
|
0.74% |
|
| Core net income / Average
stockholders' equity (Core ROE) (6) (13) |
|
4.32% |
|
|
|
11.11% |
|
|
|
9.26% |
|
| Core efficiency ratio
(28) |
|
60.29% |
|
|
|
62.47% |
|
|
|
61.34% |
|
__________________(1) Total gross loans include
loans held for investment net of unamortized deferred loan
origination fees and costs, as well as mortgage loans held for sale
carried at fair value. As of June 30, 2023, March 31, 2023 and
December 31, 2022, mortgage loans held for sale carried at fair
value totaled $49.9 million, $65.3 million and $62.4 million,
respectively.(2) Core deposits consist of total
deposits excluding all time deposits. (3) In the fourth
quarter of 2022, the Company announced that the Board of Directors
authorized a new repurchase program pursuant to which the Company
may purchase, from time to time, up to an aggregate amount of $25
million of its shares of Class A common stock (the “2023 Class A
Common Stock Repurchase Program”). In the second and first quarters
of 2023, the Company repurchased an aggregate of 95,262 shares of
Class A common stock and 22,403 shares of Class A common stock,
respectively, at a weighted average price of $17.42 per share and
$25.25 per share, respectively, under the 2023 Class A Common Stock
Repurchase Program. In the second and first quarters of 2023, the
aggregate purchase price for these transactions was approximately
$1.7 million and $0.6 million, respectively, including transaction
costs. (4)
For each of the second and first quarters of 2023 and the
fourth quarter of 2022, the Company’s Board of Directors declared
cash dividends of $0.09 per share of the Company’s common stock.
The dividend declared in the second quarter of 2023 was paid on May
31, 2023 to shareholders of record at the close of business on May
15, 2023. The dividend declared in the first quarter of 2023 was
paid on February 28, 2023 to shareholders of record at the close of
business on February 13, 2023. The dividend declared in the fourth
quarter of 2022 was paid on November 30, 2022 to shareholders of
record at the close of business on November 15, 2022. For each of
the second and first quarters of 2023 and the fourth quarter of
2022, the aggregate amount paid in connection with these dividends
was $3.0 million.(5) Assets held for clients in an
agency or fiduciary capacity which are not assets of the Company
and therefore are not included in the consolidated financial
statements.(6) As previously disclosed, the Company
adopted CECL in the fourth quarter of 2022, effective as of January
1, 2022. See Form 10-K for more details on the CECL adoption and
related effects to quarterly results for each quarter in the year
ended December 31, 2022.(7) In the three months
ended June 30, 2023, March 31, 2023, and December 31, 2022,
net income exclude losses of $0.3 million, $0.2 million and $0.2
million, respectively, attributable to a 20% minority interest of
Amerant Mortgage LLC.(8) 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.(9)
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. (10)
Operating data for the periods presented have been
annualized.(11) NIM is defined as NII divided by
average interest-earning assets, which are loans, securities,
deposits with banks and other financial assets which yield interest
or similar income.(12) Calculated based upon the
average daily balance of total assets.(13) Calculated
based upon the average daily balance of stockholders’
equity.(14) Total revenue is the result of net interest
income before provision for credit losses plus noninterest
income.(15) Total stockholders’ equity divided by total
risk-weighted assets, calculated according to the standardized
regulatory capital ratio calculations.(16) Tier 1
capital divided by total risk-weighted assets. Tier 1 capital is
composed of Common Equity Tier 1 (CET1) capital plus outstanding
qualifying trust preferred securities of $62.3 million at each of
all the dates presented.(17) Tier 1 capital divided by
quarter to date average assets. (18) CET1 capital
divided by total risk-weighted assets.(19) Tangible
common equity is calculated as the ratio of common equity less
goodwill and other intangibles divided by total assetsless goodwill
and other intangible assets. Other intangible assets primarily
consist of mortgage servicing rights and are included in other
assets in the Company’s consolidated balance sheets.(20)
Calculated in the same manner described in footnote 19 but
also includes unrealized losses on debt securities held to maturity
in the balance of common equity and total assets.(21)
Calculated as the ratio of total loans gross divided by total
deposits.(22) Non-performing assets include all
accruing loans past due by 90 days or more, all nonaccrual loans
and other real estate owned (“OREO”) properties acquired through or
in lieu of foreclosure, and other repossessed assets. (23)
Non-performing loans include all accruing loans past due by
90 days or more and all nonaccrual loans(24) Calculated
based upon the average daily balance of outstanding loan principal
balance net of unamortized deferred loan origination fees and
costs, excluding the allowance for credit losses. During the second
and first quarters of 2023, and in the fourth quarter of 2022,
there were net charge offs of $7.5 million, $10.8 million, and
$9.8 million, respectively. During the second quarter of 2023, the
Company charged-off $7.6 million related to multiple purchased
indirect consumer loans and $1.5 million related to multiple
commercial loans. During the first quarter of 2023, the Company
charged-off $6.5 million in connection with a commercial loan
relationship, $6.3 million related to multiple consumer loans and
$1.5 million related to multiple commercial and real estate loans.
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. (25) Other operating expenses is the result of
total noninterest expense less salary and employee
benefits.(26) Efficiency ratio is the result of
noninterest expense divided by the sum of noninterest income
and NII.(27) As of June 30, 2023, March 31,
2023 and December 31, 2022, includes 93, 94 and 68 FTEs for Amerant
Mortgage LLC, respectively. (28) Core efficiency ratio
is the efficiency ratio less the effect of restructuring costs and
other non-routine items, 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 and other repossessed assets, the valuation of
securities, derivatives, loans held for sale and other real estate
owned and repossessed assets, the early repayment of FHLB advances,
impairment of investments and other non-routine actions intended to
improve customer service and operating performance. The Company
believes these adjusted numbers are useful to understand the
Company’s performance absent these transactions and events.
| |
Three Months Ended, |
| (in thousands) |
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
Net income attributable to Amerant Bancorp Inc. (1) |
$ |
7,308 |
|
|
$ |
20,186 |
|
|
$ |
21,973 |
|
| Plus: provision for credit
losses (1) |
|
29,077 |
|
|
|
11,700 |
|
|
|
16,857 |
|
| Plus: provision for income tax
expense (1) |
|
1,873 |
|
|
|
5,301 |
|
|
|
5,627 |
|
| Pre-provision net
revenue (PPNR) |
|
38,258 |
|
|
|
37,187 |
|
|
|
44,457 |
|
| Plus: non-routine noninterest
expense items |
|
13,383 |
|
|
|
3,372 |
|
|
|
2,447 |
|
| Less: non-routine noninterest
income items |
|
(12,445 |
) |
|
|
(3,456 |
) |
|
|
(9,066 |
) |
| Core pre-provision net
revenue (Core PPNR) |
$ |
39,196 |
|
|
$ |
37,103 |
|
|
$ |
37,838 |
|
| |
|
|
|
|
|
| Total noninterest income |
$ |
26,619 |
|
|
$ |
19,343 |
|
|
$ |
24,365 |
|
| Less: Non-routine noninterest
income items: |
|
|
|
|
|
|
Derivatives gains, net |
|
242 |
|
|
|
14 |
|
|
|
1,040 |
|
|
Securities losses, net |
|
(1,237 |
) |
|
|
(9,731 |
) |
|
|
(3,364 |
) |
|
Gains on early extinguishment of FHLB advances, net |
|
13,440 |
|
|
|
13,173 |
|
|
|
11,390 |
|
|
Total non-routine noninterest income items |
$ |
12,445 |
|
|
$ |
3,456 |
|
|
$ |
9,066 |
|
| Core noninterest
income |
$ |
14,174 |
|
|
$ |
15,887 |
|
|
$ |
15,299 |
|
| |
|
|
|
|
|
| Total noninterest
expenses |
$ |
72,500 |
|
|
$ |
64,733 |
|
|
$ |
62,241 |
|
|
Less: non-routine noninterest expense items |
|
|
|
|
|
|
Restructuring costs (2): |
|
|
|
|
|
|
Staff reduction costs (3) |
|
2,184 |
|
|
|
213 |
|
|
|
1,221 |
|
|
Contract termination costs (4) |
|
1,550 |
|
|
|
— |
|
|
|
— |
|
|
Consulting and other professional fees (5) |
|
2,060 |
|
|
|
2,690 |
|
|
|
1,226 |
|
|
Disposition of fixed assets (6) |
|
1,419 |
|
|
|
— |
|
|
|
— |
|
|
Branch closure expenses and related charges (7) |
|
1,558 |
|
|
|
469 |
|
|
|
— |
|
|
Total restructuring costs |
$ |
8,771 |
|
|
$ |
3,372 |
|
|
$ |
2,447 |
|
|
Other non-routine noninterest expense items: |
|
|
|
|
|
|
Loss on sale of repossessed assets (8) |
|
2,649 |
|
|
|
— |
|
|
|
— |
|
|
Impairment charge on investment carried at cost |
|
1,963 |
|
|
|
— |
|
|
|
— |
|
|
Total non-routine noninterest expense items |
$ |
13,383 |
|
|
$ |
3,372 |
|
|
$ |
2,447 |
|
| Core noninterest
expenses |
$ |
59,117 |
|
|
$ |
61,361 |
|
|
$ |
59,794 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| (in thousands, except
percentages and per share amounts) |
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
| Net income attributable to
Amerant Bancorp Inc. (1) |
$ |
7,308 |
|
|
$ |
20,186 |
|
|
$ |
21,973 |
|
| Plus after-tax non-routine
items in noninterest expense: |
|
|
|
|
|
| Non-routine items in
noninterest expense before income tax effect |
|
13,383 |
|
|
|
3,372 |
|
|
|
2,447 |
|
| Income tax effect (9) |
|
(2,811 |
) |
|
|
(708 |
) |
|
|
(460 |
) |
| Total after-tax non-routine
items in noninterest expense |
|
10,572 |
|
|
|
2,664 |
|
|
|
1,987 |
|
| Less after-tax non-routine
items in noninterest income: |
|
|
|
|
|
| Non-routine items in
noninterest income before income tax effect |
|
(12,445 |
) |
|
|
(3,456 |
) |
|
|
(9,066 |
) |
| Income tax effect (9) |
|
2,613 |
|
|
|
726 |
|
|
|
1,923 |
|
| Total after-tax non-routine
items in noninterest income |
|
(9,832 |
) |
|
|
(2,730 |
) |
|
|
(7,143 |
) |
| Core net income
(1) |
$ |
8,048 |
|
|
$ |
20,120 |
|
|
$ |
16,817 |
|
| |
|
|
|
|
|
| Basic earnings per share
(1) |
$ |
0.22 |
|
|
$ |
0.60 |
|
|
$ |
0.66 |
|
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.31 |
|
|
|
0.08 |
|
|
|
0.06 |
|
| Less: after tax impact of
non-routine items in noninterest income |
|
(0.29 |
) |
|
|
(0.08 |
) |
|
|
(0.22 |
) |
| Total core basic
earnings per common share (1) |
$ |
0.24 |
|
|
$ |
0.60 |
|
|
$ |
0.50 |
|
| |
|
|
|
|
|
| Diluted earnings per share (1)
(10) |
$ |
0.22 |
|
|
$ |
0.60 |
|
|
$ |
0.65 |
|
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.31 |
|
|
|
0.08 |
|
|
|
0.06 |
|
| Less: after tax impact of
non-routine items in noninterest income |
|
(0.29 |
) |
|
|
(0.09 |
) |
|
|
(0.21 |
) |
| Total core diluted
earnings per common share (1) |
$ |
0.24 |
|
|
$ |
0.59 |
|
|
$ |
0.50 |
|
| |
|
|
|
|
|
| Net income / Average total
assets (ROA) (1) |
|
0.31 |
% |
|
|
0.88 |
% |
|
|
0.97 |
% |
| Plus: after tax impact of
non-routine items in noninterest expense |
|
0.45 |
% |
|
|
0.12 |
% |
|
|
0.09 |
% |
| Less: after tax impact of
non-routine items in noninterest income |
(0.42 |
)% |
|
(0.12 |
)% |
|
(0.32 |
)% |
| Core net income /
Average total assets (Core ROA) (1) |
|
0.34 |
% |
|
|
0.88 |
% |
|
|
0.74 |
% |
| |
|
|
|
|
|
| Net income / Average
stockholders' equity (ROE) (1) |
|
3.92 |
% |
|
|
11.15 |
% |
|
|
12.10 |
% |
| Plus: after tax impact of
non-routine items in noninterest expense |
|
5.68 |
% |
|
|
1.47 |
% |
|
|
1.09 |
% |
| Less: after tax impact of
non-routine items in noninterest income |
(5.28 |
)% |
|
(1.51 |
)% |
|
(3.93 |
)% |
| Core net income /
Average stockholders' equity (Core ROE) (1) |
|
4.32 |
% |
|
|
11.11 |
% |
|
|
9.26 |
% |
| |
|
|
|
|
|
| Efficiency ratio |
|
65.61 |
% |
|
|
63.67 |
% |
|
|
58.42 |
% |
| Less: impact of non-routine
items in noninterest expense |
(12.11 |
)% |
|
(3.32 |
)% |
|
(2.30 |
)% |
| Plus: impact of non-routine
items in noninterest income |
|
6.79 |
% |
|
|
2.12 |
% |
|
|
5.22 |
% |
| Core efficiency
ratio |
|
60.29 |
% |
|
|
62.47 |
% |
|
|
61.34 |
% |
| |
Three Months Ended, |
| (in thousands, except
percentages, share data and per share amounts) |
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
Stockholders' equity |
$ |
720,956 |
|
|
$ |
729,056 |
|
|
$ |
705,726 |
|
| Less: goodwill and other
intangibles (11) |
|
(24,124 |
) |
|
|
(24,292 |
) |
|
|
(23,161 |
) |
| Tangible common stockholders'
equity |
$ |
696,832 |
|
|
$ |
704,764 |
|
|
$ |
682,565 |
|
| Total assets |
|
9,519,526 |
|
|
|
9,495,302 |
|
|
|
9,127,804 |
|
| Less: goodwill and other
intangibles (11) |
|
(24,124 |
) |
|
|
(24,292 |
) |
|
|
(23,161 |
) |
| Tangible assets |
$ |
9,495,402 |
|
|
$ |
9,471,010 |
|
|
$ |
9,104,643 |
|
| Common shares outstanding |
|
33,736,159 |
|
|
|
33,814,260 |
|
|
|
33,815,161 |
|
| Tangible common equity
ratio |
|
7.34 |
% |
|
|
7.44 |
% |
|
|
7.50 |
% |
| Stockholders' book
value per common share |
$ |
21.37 |
|
|
$ |
21.56 |
|
|
$ |
20.87 |
|
| Tangible stockholders'
equity book value per common share |
$ |
20.66 |
|
|
$ |
20.84 |
|
|
$ |
20.19 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| Tangible common stockholders'
equity |
$ |
696,832 |
|
|
$ |
704,764 |
|
|
$ |
682,565 |
|
| Less: Net unrealized
accumulated losses on debt securities held to maturity, net of tax
(12) |
|
(18,503 |
) |
|
|
(15,542 |
) |
|
|
(18,234 |
) |
| Tangible common stockholders'
equity, adjusted for net unrealized accumulated losses on debt
securities held to maturity |
$ |
678,329 |
|
|
$ |
689,222 |
|
|
$ |
664,331 |
|
| Tangible assets |
$ |
9,495,402 |
|
|
$ |
9,471,010 |
|
|
$ |
9,104,643 |
|
| Less: Net unrealized
accumulated losses on debt securities held to maturity, net of tax
(12) |
|
(18,503 |
) |
|
|
(15,542 |
) |
|
|
(18,234 |
) |
| Tangible assets, adjusted for
net unrealized accumulated losses on debt securities held to
maturity |
$ |
9,476,899 |
|
|
$ |
9,455,468 |
|
|
$ |
9,086,409 |
|
| Common shares outstanding |
|
33,736,159 |
|
|
|
33,814,260 |
|
|
|
33,815,161 |
|
| |
|
|
|
|
|
| Tangible common equity
ratio, adjusted for net unrealized accumulated losses on debt
securities held to maturity |
|
7.16 |
% |
|
|
7.29 |
% |
|
|
7.31 |
% |
| Tangible stockholders'
book value per common share, adjusted for net unrealized
accumulated losses on debt securities held to
maturity |
$ |
20.11 |
|
|
$ |
20.38 |
|
|
$ |
19.65 |
|
____________(1) As previously disclosed, the Company
adopted CECL in the fourth quarter of 2022, effective as of January
1, 2022. See Form 10-K for more details of the CECL adoption and
related effects to quarterly results for each quarter in the year
ended December 31, 2022.(2) 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. (3) Staff
reduction costs in the three months ended June 30, 2023, March
31, 2023 and December 31, 2022 consist of severance expenses
related to organizational rationalization.(4) Contract
termination and related costs associated with third party vendors
resulting from the Company’s engagement of FIS.(5)
Includes expenses in connection with the engagement of FIS of
$2.0 million, $2.6 million and $1.1 million in the three months
ended June 30, 2023, March 31, 2023 and December 31, 2022,
respectively. (6) Include expenses in connection with
the disposition of fixed assets due to the write off of
in-development software in the three months ended June 30,
2023.(7) In the three months ended June 30, 2023,
consists of expenses associated with the decision to close a branch
in Miami, Florida in 2023, including $0.9 million of accelerated
amortization of leasehold improvements and $0.6 million of
right-of-use, or ROU asset impairment. In the three months ended
March 31, 2023, includes $0.5 million of ROU asset impairment
associated with the closure of a branch in Houston, Texas in
2023.(8) In the three months ended June 30, 2023,
amount represents the loss on sale of repossessed assets in
connection with our equipment-financing activities.(9)
In the three months ended March 31, 2023, amounts were
calculated based upon the effective tax rate for the period of
21.00%. For all of the other periods shown, amounts represent the
difference between the prior and current period year-to-date tax
effect.
(10) In the three months ended June 30, 2023,
March 31, 2023 and December 31, 2022, 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.(11) Other intangible assets
primarily consist of mortgage servicing rights (“MSRs”) of $1.3
million, $1.4 million and $1.3 million at June 30, 2023, March
31, 2023 and December 31, 2022, respectively, and are included in
other assets in the Company’s consolidated balance
sheets.(12) In the three months ended June 30,
2023, March 31, 2023 and December 31, 2022, amounts were calculated
based upon the fair value on debt securities held to maturity, and
assuming a tax rate of 25.46%, 25.53% and 25.55%, respectively.
Exhibit 3 - Average Balance Sheet,
Interest and Yield/Rate Analysis
The following tables present average balance sheet information,
interest income, interest expense and the corresponding average
yields earned and rates paid for the periods presented. The average
balances for loans include both performing and nonperforming
balances. Interest income on loans includes the effects of discount
accretion and the amortization of non-refundable loan origination
fees, net of direct loan origination costs, accounted for as yield
adjustments. Average balances represent the daily average balances
for the periods presented.
| |
Three Months Ended |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
| (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) |
$ |
7,068,034 |
|
$ |
119,570 |
6.79 |
% |
|
$ |
6,901,352 |
|
$ |
108,501 |
6.38 |
% |
|
$ |
5,635,147 |
|
$ |
61,514 |
4.38 |
% |
|
Debt securities available for sale (3) (4) |
|
1,041,039 |
|
|
10,397 |
4.01 |
% |
|
|
1,058,831 |
|
|
10,173 |
3.90 |
% |
|
|
1,113,994 |
|
|
7,614 |
2.74 |
% |
|
Debt securities held to maturity (5) |
|
236,297 |
|
|
1,976 |
3.35 |
% |
|
|
240,627 |
|
|
2,112 |
3.56 |
% |
|
|
177,483 |
|
|
981 |
2.22 |
% |
|
Debt securities held for trading |
|
262 |
|
|
3 |
4.59 |
% |
|
|
18 |
|
|
— |
— |
% |
|
|
101 |
|
|
1 |
3.97 |
% |
|
Equity securities with readily determinable fair value not held for
trading |
|
27 |
|
|
— |
— |
% |
|
|
4,886 |
|
|
— |
— |
% |
|
|
12,407 |
|
|
— |
— |
% |
|
Federal Reserve Bank and FHLB stock |
|
52,917 |
|
|
857 |
6.50 |
% |
|
|
57,803 |
|
|
1,014 |
7.11 |
% |
|
|
49,476 |
|
|
539 |
4.37 |
% |
|
Deposits with banks |
|
379,123 |
|
|
5,694 |
6.02 |
% |
|
|
302,791 |
|
|
3,330 |
4.46 |
% |
|
|
224,751 |
|
|
518 |
0.92 |
% |
|
Total interest-earning assets |
|
8,777,699 |
|
|
138,497 |
6.33 |
% |
|
|
8,566,308 |
|
|
125,130 |
5.92 |
% |
|
|
7,213,359 |
|
|
71,167 |
3.96 |
% |
| Total
non-interest-earning assets (6) |
|
710,404 |
|
|
|
|
|
739,522 |
|
|
|
|
|
635,871 |
|
|
|
| Total assets |
$ |
9,488,103 |
|
|
|
|
$ |
9,305,830 |
|
|
|
|
$ |
7,849,230 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
| (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 |
$ |
2,641,746 |
|
$ |
16,678 |
2.53 |
% |
|
$ |
2,342,620 |
|
$ |
12,855 |
2.23 |
% |
|
$ |
1,654,232 |
|
$ |
1,034 |
0.25 |
% |
|
Money market |
|
1,169,047 |
|
|
9,401 |
3.23 |
% |
|
|
1,333,465 |
|
|
7,881 |
2.40 |
% |
|
|
1,262,566 |
|
|
1,351 |
0.43 |
% |
|
Savings |
|
287,493 |
|
|
36 |
0.05 |
% |
|
|
299,501 |
|
|
46 |
0.06 |
% |
|
|
318,967 |
|
|
14 |
0.02 |
% |
| Total checking and saving
accounts |
|
4,098,286 |
|
|
26,115 |
2.56 |
% |
|
|
3,975,586 |
|
|
20,782 |
2.12 |
% |
|
|
3,235,765 |
|
|
2,399 |
0.30 |
% |
| Time deposits |
|
2,045,747 |
|
|
18,528 |
3.63 |
% |
|
|
1,767,603 |
|
|
12,834 |
2.94 |
% |
|
|
1,256,112 |
|
|
4,503 |
1.44 |
% |
| Total deposits |
|
6,144,033 |
|
|
44,643 |
2.91 |
% |
|
|
5,743,189 |
|
|
33,616 |
2.37 |
% |
|
|
4,491,877 |
|
|
6,902 |
0.62 |
% |
| Securities sold under
agreements to repurchase |
|
60 |
|
|
1 |
6.68 |
% |
|
|
— |
|
|
— |
— |
% |
|
|
60 |
|
|
— |
— |
% |
| Advances from the FHLB
(7) |
|
828,301 |
|
|
7,621 |
3.69 |
% |
|
|
959,392 |
|
|
6,763 |
2.86 |
% |
|
|
867,573 |
|
|
3,341 |
1.54 |
% |
| Senior notes |
|
59,330 |
|
|
941 |
6.36 |
% |
|
|
59,250 |
|
|
942 |
6.45 |
% |
|
|
59,013 |
|
|
942 |
6.40 |
% |
| Subordinated notes |
|
29,348 |
|
|
362 |
4.95 |
% |
|
|
29,306 |
|
|
361 |
5.00 |
% |
|
|
29,178 |
|
|
361 |
4.96 |
% |
| Junior subordinated
debentures |
|
64,178 |
|
|
1,052 |
6.57 |
% |
|
|
64,178 |
|
|
1,115 |
7.05 |
% |
|
|
64,178 |
|
|
676 |
4.22 |
% |
| Total interest-bearing
liabilities |
|
7,125,250 |
|
|
54,620 |
3.07 |
% |
|
|
6,855,315 |
|
|
42,797 |
2.53 |
% |
|
|
5,511,879 |
|
|
12,222 |
0.89 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
1,332,189 |
|
|
|
|
|
1,377,966 |
|
|
|
|
|
1,309,520 |
|
|
|
| Accounts payable, accrued
liabilities and other liabilities |
|
283,653 |
|
|
|
|
|
338,351 |
|
|
|
|
|
283,721 |
|
|
|
| Total non-interest-bearing
liabilities |
|
1,615,842 |
|
|
|
|
|
1,716,317 |
|
|
|
|
|
1,593,241 |
|
|
|
| Total liabilities |
|
8,741,092 |
|
|
|
|
|
8,571,632 |
|
|
|
|
|
7,105,120 |
|
|
|
| Stockholders’ equity |
|
747,011 |
|
|
|
|
|
734,198 |
|
|
|
|
|
744,110 |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
9,488,103 |
|
|
|
|
$ |
9,305,830 |
|
|
|
|
$ |
7,849,230 |
|
|
|
| Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,652,449 |
|
|
|
|
$ |
1,710,993 |
|
|
|
|
$ |
1,701,480 |
|
|
|
| Net interest
income |
|
$ |
83,877 |
|
|
|
$ |
82,333 |
|
|
|
$ |
58,945 |
|
| Net interest rate spread |
|
|
3.26 |
% |
|
|
|
3.39 |
% |
|
|
|
3.07 |
% |
| Net interest margin (8) |
|
|
3.83 |
% |
|
|
|
3.90 |
% |
|
|
|
3.28 |
% |
| Cost of total deposits
(9) |
|
|
2.40 |
% |
|
|
|
1.91 |
% |
|
|
|
0.48 |
% |
| Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
123.19 |
% |
|
|
|
|
124.96 |
% |
|
|
|
|
130.87 |
% |
|
|
| Average non-performing loans/
Average total loans |
|
0.54 |
% |
|
|
|
|
0.46 |
% |
|
|
|
|
0.56 |
% |
|
|
| |
Six Months Ended |
| |
June 30, 2023 |
|
June 30, 2022 |
| (in thousands, except
percentages) |
AverageBalances |
Income/Expense |
Yield/Rates |
|
AverageBalances |
Income/Expense |
Yield/Rates |
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
Loan portfolio, net (1)(2) |
$ |
6,985,153 |
|
$ |
228,071 |
6.58 |
% |
|
$ |
5,564,362 |
|
$ |
117,852 |
4.27 |
% |
|
Debt securities available for sale (3)(4) |
|
1,049,886 |
|
|
20,568 |
3.95 |
% |
|
|
1,142,087 |
|
|
14,992 |
2.65 |
% |
|
Debt securities held to maturity (5) |
|
238,450 |
|
|
4,088 |
3.46 |
% |
|
|
146,243 |
|
|
1,684 |
2.32 |
% |
|
Debt securities held for trading |
|
141 |
|
|
4 |
5.72 |
% |
|
|
68 |
|
|
2 |
5.93 |
% |
|
Equity securities with readily determinable fair value not held for
trading |
|
2,443 |
|
|
— |
— |
% |
|
|
6,885 |
|
|
— |
— |
% |
|
Federal Reserve Bank and FHLB stock |
|
55,346 |
|
|
1,872 |
6.82 |
% |
|
|
50,485 |
|
|
1,085 |
4.33 |
% |
|
Deposits with banks |
|
341,168 |
|
|
9,024 |
5.33 |
% |
|
|
241,893 |
|
|
650 |
0.54 |
% |
|
Total interest-earning assets (6) |
|
8,672,587 |
|
|
263,627 |
6.13 |
% |
|
|
7,152,023 |
|
|
136,265 |
3.84 |
% |
| Total non-interest-earning
assets less allowance for loan losses |
|
725,675 |
|
|
|
|
|
626,501 |
|
|
|
| Total assets |
$ |
9,398,262 |
|
|
|
|
$ |
7,778,524 |
|
|
|
| |
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
| Checking and saving accounts
- |
|
|
|
|
|
|
|
|
Interest bearing DDA |
$ |
2,493,009 |
|
$ |
29,533 |
2.39 |
% |
|
$ |
1,605,626 |
|
$ |
1,324 |
0.17 |
% |
|
Money market |
|
1,250,801 |
|
|
17,281 |
2.79 |
% |
|
|
1,257,955 |
|
|
2,084 |
0.33 |
% |
|
Savings |
|
293,464 |
|
|
83 |
0.06 |
% |
|
|
322,027 |
|
|
26 |
0.02 |
% |
| Total checking and saving
accounts |
|
4,037,274 |
|
|
46,897 |
2.34 |
% |
|
|
3,185,608 |
|
|
3,434 |
0.22 |
% |
| Time deposits |
|
1,907,443 |
|
|
31,362 |
3.32 |
% |
|
|
1,275,587 |
|
|
8,784 |
1.39 |
% |
| Total deposits |
|
5,944,717 |
|
|
78,259 |
2.65 |
% |
|
|
4,461,195 |
|
|
12,218 |
0.55 |
% |
| Securities sold under
agreements to repurchase |
|
30 |
|
|
1 |
6.72 |
% |
|
|
30 |
|
|
— |
— |
% |
| Advances from the FHLB
(7) |
|
893,484 |
|
|
14,384 |
3.25 |
% |
|
|
892,170 |
|
|
5,822 |
1.32 |
% |
| Senior notes |
|
59,290 |
|
|
1,883 |
6.40 |
% |
|
|
58,974 |
|
|
1,884 |
6.44 |
% |
| Subordinated notes |
|
29,327 |
|
|
723 |
4.97 |
% |
|
|
18,375 |
|
|
449 |
4.93 |
% |
| Junior subordinated
debentures |
|
64,178 |
|
|
2,167 |
6.81 |
% |
|
|
64,178 |
|
|
1,302 |
4.09 |
% |
| Total interest-bearing
liabilities |
|
6,991,026 |
|
|
97,417 |
2.81 |
% |
|
|
5,494,922 |
|
|
21,675 |
0.80 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
1,354,951 |
|
|
|
|
|
1,254,948 |
|
|
|
| Accounts payable, accrued
liabilities and other liabilities |
|
310,716 |
|
|
|
|
|
257,559 |
|
|
|
| Total non-interest-bearing
liabilities |
|
1,665,667 |
|
|
|
|
|
1,512,507 |
|
|
|
| Total liabilities |
|
8,656,693 |
|
|
|
|
|
7,007,429 |
|
|
|
| Stockholders’ equity |
|
741,569 |
|
|
|
|
|
771,095 |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
9,398,262 |
|
|
|
|
$ |
7,778,524 |
|
|
|
| Excess of average
interest-earning assets over average interest-bearing
liabilities |
$ |
1,681,561 |
|
|
|
|
$ |
1,657,101 |
|
|
|
| Net interest
income |
|
$ |
166,210 |
|
|
|
$ |
114,590 |
|
| Net interest rate spread |
|
|
3.32 |
% |
|
|
|
3.04 |
% |
| Net interest margin (8) |
|
|
3.86 |
% |
|
|
|
3.23 |
% |
| Cost of total deposits
(9) |
|
|
2.16 |
% |
|
|
|
0.43 |
% |
| Ratio of average
interest-earning assets to average interest-bearing
liabilities |
|
124.05 |
% |
|
|
|
|
130.16 |
% |
|
|
| Average non-performing loans/
Average total loans |
|
0.50 |
% |
|
|
|
|
0.63 |
% |
|
|
___________(1) Includes loans held for
investment net of the allowance for credit losses, and mortgage
loans held for sale carried at fair value. The average balance of
the allowance for credit losses was $84.6 million, $81.4
million and $55.9 million in the three months ended June 30,
2023, March 31, 2023 and June 30, 2022, respectively, and $83.0
million and $61.7 million in the six months ended June 30, 2023 and
June 30, 2022, respectively. The average balance of mortgage loans
held for sale carried at fair value was $85.1 million, $66.4
million and $112.2 million in the three months ended June 30,
2023, March 31, 2023 and June 30, 2022, respectively, and $75.8
million and $123.6 million in the six months ended June 30, 2023
and June 30, 2022, respectively. (2) Includes average
non-performing loans of $38.5 million, $31.8 million and $32.7
million for the three months ended June 30, 2023, March 31,
2023 and June 30, 2022, respectively, $35.2 million and $36.0
million in the six months ended June 30, 2023 and June 30, 2022,
respectively. (3) Includes the average balance of
net unrealized gains and losses in the fair value of debt
securities available for sale. The average balance includes average
unrealized net losses of $106.7 million, $104.9 million and $58.0
million in the three months ended June 30, 2023, March 31,
2023, and June 30, 2022, respectively, and average unrealized net
losses of $105.8 million and $28.0 million in the six months ended
June 30, 2023 and 2022, respectively.(4) Includes
nontaxable securities with average balances of $19.5 million, $19.7
million and $14.8 million for the three months ended June 30,
2023, March 31, 2023 and June 30, 2022, respectively, and $19.4
million and $15.7 million in the six months ended June 30, 2023 and
June 30, 2022, respectively. The tax equivalent yield for these
nontaxable securities was 4.53%, 4.56% and 2.97% for the three
months ended June 30, 2023, March 31, 2023 and June 30, 2022,
respectively, and 4.59% and 2.85% in the six months ended June 30,
2023 and June 30, 2022. In 2023 and 2022, the tax equivalent yields
were calculated assuming a 21% tax rate and dividing the actual
yield by 0.79. (5) Includes nontaxable securities
with average balances of $50.1 million, $50.7 million and $42.7
million for the three months ended June 30, 2023, March 31,
2023 and June 30, 2022, respectively, and $50.4 million and $43.4
million in the six months ended June 30, 2023 and June 30, 2022,
respectively. The tax equivalent yield for these nontaxable
securities was 4.16%, 4.20% and 3.31% for the three months ended
June 30, 2023, March 31, 2023 and June 30, 2022, respectively,
and 4.18% and 3.22% in the six months ended June 30, 2023 and June
30, 2022. In 2023 and 2022, 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 |
|
Six Months Ended June 30, |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
|
2023 |
|
|
|
2022 |
|
| (in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
| |
|
|
|
|
|
|
|
|
Deposits and service fees |
$ |
4,944 |
|
18.6 |
% |
|
$ |
4,955 |
|
25.6 |
% |
|
$ |
4,577 |
|
35.4 |
% |
|
|
9,899 |
|
21.5 |
% |
|
$ |
9,197 |
|
34.1 |
% |
| Brokerage, advisory and
fiduciary activities |
|
4,256 |
|
16.0 |
% |
|
|
4,182 |
|
21.6 |
% |
|
|
4,439 |
|
34.3 |
% |
|
|
8,438 |
|
18.4 |
% |
|
|
9,035 |
|
33.5 |
% |
| Change in cash surrender value
of bank owned life insurance (“BOLI”)(1) |
|
1,429 |
|
5.4 |
% |
|
|
1,412 |
|
7.3 |
% |
|
|
1,334 |
|
10.3 |
% |
|
|
2,841 |
|
6.2 |
% |
|
|
2,676 |
|
9.9 |
% |
| Cards and trade finance
servicing fees |
|
562 |
|
2.1 |
% |
|
|
533 |
|
2.8 |
% |
|
|
508 |
|
3.9 |
% |
|
|
1,095 |
|
2.4 |
% |
|
|
1,098 |
|
4.1 |
% |
| Gain (loss) on early
extinguishment of FHLB advances, net |
|
13,440 |
|
50.5 |
% |
|
|
13,173 |
|
68.1 |
% |
|
|
2 |
|
— |
% |
|
|
26,613 |
|
57.9 |
% |
|
|
(712 |
) |
(2.6 |
)% |
| Securities losses, net
(2) |
|
(1,237 |
) |
(4.7 |
)% |
|
|
(9,731 |
) |
(50.3 |
)% |
|
|
(2,602 |
) |
(20.1 |
)% |
|
|
(10,968 |
) |
(23.9 |
)% |
|
|
(1,833 |
) |
(6.8 |
)% |
| Loan-level derivative income
(3) |
|
476 |
|
1.8 |
% |
|
|
2,071 |
|
10.7 |
% |
|
|
1,009 |
|
7.8 |
% |
|
|
2,547 |
|
5.5 |
% |
|
|
4,161 |
|
15.4 |
% |
| Derivative gains (losses), net
(4) |
|
242 |
|
0.9 |
% |
|
|
14 |
|
0.1 |
% |
|
|
855 |
|
6.6 |
% |
|
|
256 |
|
0.6 |
% |
|
|
(490 |
) |
(1.8 |
)% |
| Other noninterest income
(5) |
|
2,507 |
|
9.4 |
% |
|
|
2,734 |
|
14.1 |
% |
|
|
2,809 |
|
21.8 |
% |
|
|
5,241 |
|
11.4 |
% |
|
|
3,824 |
|
14.2 |
% |
|
Total noninterest income |
$ |
26,619 |
|
100.0 |
% |
|
$ |
19,343 |
|
100.0 |
% |
|
$ |
12,931 |
|
100.0 |
% |
|
$ |
45,962 |
|
100.0 |
% |
|
$ |
26,956 |
|
100.0 |
% |
__________________(1) Changes in cash surrender
value of BOLI are not taxable.(2) Includes net loss on
sale of debt securities available for sale of $1.2 million and $9.5
million in the three months ended June 30, 2023 and March 31,
2023, respectively, and net loss and gain on the sale of debt
securities available for sale of $10.8 million and $49 thousand in
the six months ended June 30, 2023 and 2022, respectively.
There were no gains or losses on the sale of debt securities
available for sale in the three months ended June 30, 2022. In
addition, includes unrealized losses of $2.6 million and $1.9
million in the three and six month periods ended June 30, 2022,
respectively, related to the change in fair value of equity
securities with readily available fair value not held for trading
which are recorded in results of the period. There were no
significant unrealized losses related to equity securities with
readily available fair value not held for trading in the three and
six month periods ended June 30, 2023. Also, in the three
months ended March 31, 2023, the Company sold all of its equity
securities with readily available fair value not held for trading,
with a total fair value of $11.2 million at the time of sale, and
recognized a net loss of $0.2 million in connection with this
transaction.(3) Income from interest rate swaps and
other derivative transactions with customers. The Company incurred
expenses related to derivative transactions with customers of $0.1
million, $1.6 million and $2.0 million in the three months ended
June 30, 2023, March 31, 2023 and June 30, 2022, respectively,
and $1.7 million and $3.1 million in the six months ended
June 30, 2023 and 2022, respectively, which are included as
part of noninterest expenses under loan-level derivative expense.
(4) Net unrealized gains and losses related to
uncovered interest rate caps with clients.
(5) Includes mortgage banking income of $1.6
million, $1.8 million and $2.4 million in the three months ended
June 30, 2023, March 31, 2023 and June 30, 2022, respectively,
and $3.4 million and $3.1 million in the six months ended
June 30, 2023 and 2022, respectively, related to Amerant
Mortgage. Other sources of income in the periods shown include
foreign currency exchange transactions with customers and valuation
income on the investment balances held in the non-qualified
deferred compensation plan.
Exhibit 5 - Noninterest
Expense
This table shows the amounts of each of the categories of
noninterest expense for the periods presented.
| |
Three Months Ended |
|
Six Months Ended June 30, |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
|
2023 |
|
|
|
2022 |
|
| (in thousands, except
percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
| |
|
|
|
|
|
|
|
|
Salaries and employee benefits (1) |
$ |
34,247 |
|
47.2 |
% |
|
$ |
34,876 |
|
53.9 |
% |
|
$ |
30,212 |
|
48.5 |
% |
|
$ |
69,123 |
|
50.4 |
% |
|
$ |
60,615 |
|
49.3 |
% |
| Occupancy and equipment
(2) |
|
6,737 |
|
9.3 |
% |
|
|
6,798 |
|
10.5 |
% |
|
|
7,760 |
|
12.5 |
% |
|
|
13,535 |
|
9.9 |
% |
|
|
14,485 |
|
11.8 |
% |
| Professional and other
services fees (3) |
|
7,415 |
|
10.2 |
% |
|
|
7,628 |
|
11.8 |
% |
|
|
4,734 |
|
7.6 |
% |
|
|
15,043 |
|
11.0 |
% |
|
|
10,873 |
|
8.8 |
% |
| Loan-level derivative expense
(4) |
|
110 |
|
0.2 |
% |
|
|
1,600 |
|
2.5 |
% |
|
|
2,012 |
|
3.2 |
% |
|
|
1,710 |
|
1.3 |
% |
|
|
3,055 |
|
2.5 |
% |
| Telecommunications and data
processing (5) |
|
5,027 |
|
6.9 |
% |
|
|
3,064 |
|
4.7 |
% |
|
|
3,214 |
|
5.2 |
% |
|
|
8,091 |
|
5.9 |
% |
|
|
7,252 |
|
5.9 |
% |
| Depreciation and amortization
(6) |
|
2,275 |
|
3.1 |
% |
|
|
1,292 |
|
2.0 |
% |
|
|
1,294 |
|
2.1 |
% |
|
|
3,567 |
|
2.6 |
% |
|
|
2,446 |
|
2.0 |
% |
| FDIC assessments and
insurance |
|
2,739 |
|
3.8 |
% |
|
|
2,737 |
|
4.2 |
% |
|
|
1,526 |
|
2.5 |
% |
|
|
5,476 |
|
4.0 |
% |
|
|
2,922 |
|
2.4 |
% |
| Loans held for sale valuation
expense (reversal) (7) |
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
(300 |
) |
(0.5)% |
|
|
— |
|
— |
% |
|
|
159 |
|
0.1 |
% |
| Advertising expenses |
|
4,332 |
|
6.0 |
% |
|
|
2,586 |
|
4.0 |
% |
|
|
3,253 |
|
5.2 |
% |
|
|
6,918 |
|
5.0 |
% |
|
|
6,225 |
|
5.1 |
% |
| Other real estate owned and
repossessed assets expense, net (8)(9) |
|
2,431 |
|
3.4 |
% |
|
|
— |
|
— |
% |
|
|
3,174 |
|
5.1 |
% |
|
|
2,431 |
|
1.8 |
% |
|
|
3,174 |
|
2.6 |
% |
| Contract termination costs
(10) |
|
1,550 |
|
2.1 |
% |
|
|
— |
|
— |
% |
|
|
2,802 |
|
4.5 |
% |
|
|
1,550 |
|
1.1 |
% |
|
|
6,814 |
|
5.5 |
% |
| Other operating expenses
(11) |
|
5,637 |
|
7.8 |
% |
|
|
4,152 |
|
6.4 |
% |
|
|
2,560 |
|
4.1 |
% |
|
|
9,789 |
|
7.0 |
% |
|
|
5,039 |
|
4.0 |
% |
|
Total noninterest expense (12) |
$ |
72,500 |
|
100.0 |
% |
|
$ |
64,733 |
|
100.0 |
% |
|
$ |
62,241 |
|
100.0 |
% |
|
$ |
137,233 |
|
100.0 |
% |
|
$ |
123,059 |
|
100.0 |
% |
___(1) Includes staff reduction costs of $2.2
million, $0.2 million and $0.7 million in the three months ended
June 30, 2023, March 31, 2023 and June 30, 2022, respectively,
and $2.4 million and $1.4 million in the six months ended
June 30, 2023 and 2022, respectively, which consist of
severance expenses primarily related to organizational
rationalization.(2) In the three months ended June 30,
2023, includes $0.6 million related to ROU asset impairment in
connection with the decision to close a branch in Miami, Florida in
2023. In the three months ended March 31, 2023, includes $0.5
million related to ROU asset impairment in connection with the
closure of a branch in Houston, Texas in 2023. In each of the three
and six month periods ended June 30, 2022, includes ROU asset
impairment changes of $1.6 million in connection with the closure
of a branch in Pembroke Pines, Florida in 2022.(3)
Includes additional expenses of $2.0 million and $2.6 million
in the three months ended June 30, 2023 and March 31, 2023,
respectively, and $4.6 million and $0.8 million in the six months
ended June 30, 2023 and 2022, respectively, related to the
engagement of FIS. There were no additional expenses related to the
engagement of FIS in the three months ended June 30, 2022.(4)
Includes services fees in connection with our loan-level
derivative income generation activities. (5) Includes a
charge of $1.4 million in each of the three and six month periods
ended June 30, 2023 related to the disposition of fixed assets
due to the write off of in-development software.(6)
Includes a charge of $0.9 million in each of the three and
six month periods ended June 30, 2023 for the accelerated
depreciation of leasehold improvements in connection with decision
to close a branch in Miami, Florida in 2023.(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) In each of the three and six month periods
ended June 30, 2023, includes a loss on sale of repossessed
assets in connection with our equipment-financing activities of
$2.6 million. In each of the the three and six month periods ended
June 30, 2022, includes $3.2 million related to the fair value
adjustment of one OREO property in New York. In addition, in each
of the three and six month periods ended June 30, 2023,
includes OREO rental income of $0.4 million. We had no OREO rental
income in the three months ended March 31, 2023 and June 30, 2022
and in the six months ended June 30, 2022.(9) In the
three months ended June 30, 2023, other real estate owned (“OREO”)
and repossessed assets expense is presented separately in the
Company’s consolidated statement of operations and comprehensive
(loss) income. In 2022, while OREO valuation expense was presented
separately, all other OREO-related expenses were presented as part
of other operating expenses in the Company’s consolidated statement
of operations and comprehensive (loss) income. We had no other
repossessed assets in 2022.(10) Contract termination and
related costs associated with third party vendors resulting from
the Company’s transition to our new technology provider.(11)
In each of the three and six month periods ended
June 30, 2023, includes an impairment charge of $2.0 million
related to an investment carried at cost and included in other
assets. In addition, in all of the periods shown, includes
charitable contributions, community engagement, postage and courier
expenses 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.(12) Includes $4.0 million,
$3.9 million and $3.7 million in the three months ended
June 30, 2023, March 31, 2023 and June 30, 2022, respectively,
and $7.9 million and $7.1 million in the six months ended June 30,
2023 and 2022, respectively, related to Amerant Mortgage, primarily
consisting of salaries and employee benefits, mortgage lending
costs and professional and other services fees.
Exhibit 6 - Consolidated
Balance Sheets
| (in thousands, except share
data) |
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
| Assets |
|
|
|
|
(audited) |
|
Cash and due from banks |
$ |
45,184 |
|
|
$ |
41,489 |
|
|
$ |
19,486 |
|
| Interest earning deposits with
banks |
|
365,673 |
|
|
|
411,747 |
|
|
|
228,955 |
|
| Restricted cash |
|
34,204 |
|
|
|
32,541 |
|
|
|
42,160 |
|
|
Cash and cash equivalents |
|
445,061 |
|
|
|
485,777 |
|
|
|
290,601 |
|
| Securities |
|
|
|
|
|
| Debt securities available for
sale, at fair value |
|
1,027,676 |
|
|
|
1,045,883 |
|
|
|
1,057,621 |
|
| Debt securities held to
maturity, at amortized cost (estimated fair value of 209,546,
218,388 and 217,609 at June 30, 2023, March 31, 2023 and December
31, 2022, respectively) |
|
234,369 |
|
|
|
239,258 |
|
|
|
242,101 |
|
| Trading securities |
|
298 |
|
|
|
— |
|
|
|
— |
|
| Equity securities with readily
determinable fair value not held for trading |
|
2,500 |
|
|
|
— |
|
|
|
11,383 |
|
| Federal Reserve Bank and
Federal Home Loan Bank stock |
|
50,460 |
|
|
|
62,556 |
|
|
|
55,575 |
|
|
Securities |
|
1,315,303 |
|
|
|
1,347,697 |
|
|
|
1,366,680 |
|
| Mortgage loans held for sale,
at fair value |
|
49,942 |
|
|
|
65,289 |
|
|
|
62,438 |
|
| Loans held for investment,
gross |
|
7,167,016 |
|
|
|
7,049,746 |
|
|
|
6,857,194 |
|
| Less: Allowance for credit
losses |
|
105,956 |
|
|
|
84,361 |
|
|
|
83,500 |
|
|
Loans held for investment, net |
|
7,061,060 |
|
|
|
6,965,385 |
|
|
|
6,773,694 |
|
| Bank owned life insurance |
|
231,253 |
|
|
|
229,824 |
|
|
|
228,412 |
|
| Premises and equipment,
net |
|
43,714 |
|
|
|
42,380 |
|
|
|
41,772 |
|
| Deferred tax assets, net |
|
56,779 |
|
|
|
46,112 |
|
|
|
48,703 |
|
| Operating lease right-of-use
assets |
|
116,161 |
|
|
|
119,503 |
|
|
|
139,987 |
|
| Goodwill |
|
20,525 |
|
|
|
20,525 |
|
|
|
19,506 |
|
| Accrued interest receivable
and other assets (1) |
|
179,728 |
|
|
|
172,810 |
|
|
|
156,011 |
|
|
Total assets |
$ |
9,519,526 |
|
|
$ |
9,495,302 |
|
|
$ |
9,127,804 |
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
| Deposits |
|
|
|
|
|
| Demand |
|
|
|
|
|
| Noninterest bearing |
$ |
1,293,522 |
|
|
$ |
1,360,626 |
|
|
$ |
1,367,664 |
|
| Interest bearing |
|
2,773,120 |
|
|
|
2,489,565 |
|
|
|
2,300,469 |
|
| Savings and money market |
|
1,431,375 |
|
|
|
1,507,195 |
|
|
|
1,647,811 |
|
| Time |
|
2,081,554 |
|
|
|
1,929,340 |
|
|
|
1,728,255 |
|
|
Total deposits |
|
7,579,571 |
|
|
|
7,286,726 |
|
|
|
7,044,199 |
|
| Advances from the Federal Home
Loan Bank |
|
770,000 |
|
|
|
1,052,012 |
|
|
|
906,486 |
|
| Senior notes |
|
59,368 |
|
|
|
59,289 |
|
|
|
59,210 |
|
| Subordinated notes |
|
29,369 |
|
|
|
29,326 |
|
|
|
29,284 |
|
| Junior subordinated debentures
held by trust subsidiaries |
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
| Operating lease liabilities
(2) |
|
119,921 |
|
|
|
122,214 |
|
|
|
140,147 |
|
| Accounts payable, accrued
liabilities and other liabilities (3) |
|
176,163 |
|
|
|
152,501 |
|
|
|
178,574 |
|
|
Total liabilities |
|
8,798,570 |
|
|
|
8,766,246 |
|
|
|
8,422,078 |
|
| |
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
|
| Class A common stock |
|
3,374 |
|
|
|
3,383 |
|
|
|
3,382 |
|
| Additional paid in
capital |
|
195,275 |
|
|
|
194,782 |
|
|
|
194,694 |
|
| Retained earnings |
|
611,829 |
|
|
|
607,544 |
|
|
|
590,375 |
|
| Accumulated other
comprehensive loss |
|
(86,926 |
) |
|
|
(74,319 |
) |
|
|
(80,635 |
) |
|
Total stockholders' equity before noncontrolling interest |
|
723,552 |
|
|
|
731,390 |
|
|
|
707,816 |
|
| Noncontrolling interest |
|
(2,596 |
) |
|
|
(2,334 |
) |
|
|
(2,090 |
) |
|
Total stockholders' equity |
|
720,956 |
|
|
|
729,056 |
|
|
|
705,726 |
|
|
Total liabilities and stockholders' equity |
$ |
9,519,526 |
|
|
$ |
9,495,302 |
|
|
$ |
9,127,804 |
|
__________(1) As of June 30, 2023, March 31,
2023 and December 31, 2022, include derivative assets with a total
fair value of $75.8 million, $60.8 million and $78.3 million,
respectively.(2) Consists of total long-term lease
liabilities. Total short-term lease liabilities are included in
other liabilities.(3) As of June 30, 2023, March
31, 2023 and December 31, 2022, include derivatives liabilities
with a total fair value of $74.5 million, $59.5 million and $77.2
million, respectively.
Exhibit 7 - LoansLoans
by Type - Held For Investment
The loan portfolio held for investment consists of the following
loan classes:
| (in thousands) |
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
| Real estate loans |
|
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
Non-owner occupied |
$ |
1,645,224 |
|
|
$ |
1,630,451 |
|
|
$ |
1,615,716 |
|
|
Multi-family residential |
|
764,712 |
|
|
|
796,125 |
|
|
|
820,023 |
|
|
Land development and construction loans |
|
314,010 |
|
|
|
303,268 |
|
|
|
273,174 |
|
| |
|
2,723,946 |
|
|
|
2,729,844 |
|
|
|
2,708,913 |
|
|
Single-family residential |
|
1,285,857 |
|
|
|
1,189,045 |
|
|
|
1,102,845 |
|
|
Owner occupied |
|
1,063,240 |
|
|
|
1,069,491 |
|
|
|
1,046,450 |
|
| |
|
5,073,043 |
|
|
|
4,988,380 |
|
|
|
4,858,208 |
|
| Commercial loans (1) |
|
1,577,209 |
|
|
|
1,497,649 |
|
|
|
1,381,234 |
|
| Loans to financial
institutions and acceptances |
|
13,332 |
|
|
|
13,312 |
|
|
|
13,292 |
|
| Consumer loans and overdrafts
(2) |
|
503,432 |
|
|
|
550,405 |
|
|
|
604,460 |
|
| Total loans |
$ |
7,167,016 |
|
|
$ |
7,049,746 |
|
|
$ |
6,857,194 |
|
__________________(1) As of June 30, 2023,
March 31, 2023 and December 31, 2022, includes approximately
$47.7 million, $46.7 million and $45.3 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 June 30, 2023, March 31, 2023 and
December 31, 2022, includes $312.3 million, $372.2 million and
$433.3 million, respectively, in consumer loans purchased under
indirect lending programs. In addition, as of June 30, 2023,
March 31, 2023 and December 31, 2022, includes $61.8 million, $62.1
million and $43.8 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) |
June 30,2023 |
|
March 31,2023 |
|
December 31,2023 |
| |
|
|
|
|
(audited) |
| Loans held for sale at
fair value |
|
|
|
|
|
|
Land development and construction loans (1) |
|
3,726 |
|
|
|
15,527 |
|
|
|
9,424 |
|
|
Single-family residential (2) |
|
46,216 |
|
|
|
49,762 |
|
|
|
53,014 |
|
| Total loans held for sale at
fair value (3)(4) |
$ |
49,942 |
|
|
$ |
65,289 |
|
|
$ |
62,438 |
|
__________________(1) In the second quarter of 2023,
the Company transferred approximately $13 million in land
development and construction loans held for sale to the loans held
for investment category.(2) In the second quarter of
2023, the Company transferred approximately $28 million in
single-family residential loans held for sale to the loans held for
investment category.(3) Loans held for sale in
connection with Amerant Mortgage ongoing business.(4)
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, other real estate
owned, or OREO, and other repossessed assets at the dates
presented. Non-performing loans consist of (i) nonaccrual
loans, and (ii) accruing loans 90 days or more contractually
past due as to interest or principal.
| (in thousands) |
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
| Non-Accrual
Loans(1) |
|
|
|
|
(audited) |
| Real Estate Loans |
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
Non-owner occupied |
$ |
1,696 |
|
|
$ |
— |
|
|
$ |
20,057 |
|
|
Multi-family residential |
|
24,306 |
|
|
|
— |
|
|
|
— |
|
| |
|
26,002 |
|
|
|
— |
|
|
|
20,057 |
|
|
Single-family residential |
|
1,681 |
|
|
|
1,367 |
|
|
|
1,526 |
|
|
Owner occupied |
|
6,890 |
|
|
|
7,118 |
|
|
|
6,270 |
|
| |
|
34,573 |
|
|
|
8,485 |
|
|
|
27,853 |
|
| Commercial loans (2) |
|
12,241 |
|
|
|
13,643 |
|
|
|
9,271 |
|
| Consumer loans and overdrafts
(3) |
|
1 |
|
|
|
1 |
|
|
|
4 |
|
| Total Non-Accrual
Loans |
$ |
46,815 |
|
|
$ |
22,129 |
|
|
$ |
37,128 |
|
| |
|
|
|
|
|
| Past Due Accruing
Loans(4) |
|
|
|
|
|
| Real Estate Loans |
|
|
|
|
|
|
Commercial real estate (CRE) |
|
|
|
|
|
|
Single-family residential |
|
302 |
|
|
|
— |
|
|
|
253 |
|
|
Commercial |
|
— |
|
|
|
— |
|
|
|
183 |
|
| Consumer loans and
overdrafts |
|
78 |
|
|
|
53 |
|
|
|
35 |
|
| Total Past Due
Accruing Loans |
$ |
380 |
|
|
$ |
53 |
|
|
$ |
471 |
|
| Total Non-Performing
Loans |
|
47,195 |
|
|
|
22,182 |
|
|
|
37,599 |
|
| OREO and other
repossessed assets |
|
20,181 |
|
|
|
26,534 |
|
|
|
— |
|
| Total Non-Performing
Assets |
$ |
67,376 |
|
|
$ |
48,716 |
|
|
$ |
37,599 |
|
__________________(1) Prior to the first
quarter of 2023, included loan modifications that met the
definition of troubled debt restructurings, or TDR, which may be
performing in accordance with their modified loan terms.
(2) In the second quarter of 2023, we collected
$2.8 million in full satisfaction of a commercial loan relationship
in nonaccrual status and classified as Substandard at March 31,
2023.(3) 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-offs for unsecured consumer loans in the
fourth quarter of 2022.(4) Loans past due 90 days
or more but still accruing.
Loans by Credit Quality Indicators
This table shows the Company’s loans by credit quality
indicators. The Company has not purchased credit-impaired
loans.
| |
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
(audited) |
| (in thousands) |
SpecialMention |
Sub-standard |
Doubtful |
Total (1) |
|
SpecialMention |
Sub-standard |
Doubtful |
Total (1) |
|
SpecialMention |
Sub-standard |
Doubtful |
Total (1) |
| Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate (CRE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
$ |
8,301 |
$ |
1,753 |
$ |
— |
$ |
10,054 |
|
$ |
8,335 |
$ |
— |
$ |
— |
$ |
8,335 |
|
$ |
8,378 |
$ |
20,113 |
$ |
— |
$ |
28,491 |
|
Multi-family residential |
|
— |
|
24,306 |
|
— |
|
24,306 |
|
|
24,348 |
|
— |
|
— |
|
24,348 |
|
|
— |
|
— |
|
— |
|
— |
|
Land development and construction loans |
|
6,497 |
|
— |
|
— |
|
6,497 |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
| |
|
14,798 |
|
26,059 |
|
— |
|
40,857 |
|
|
32,683 |
|
— |
|
— |
|
32,683 |
|
|
8,378 |
|
20,113 |
|
— |
|
28,491 |
|
Single-family residential |
|
— |
|
2,154 |
|
— |
|
2,154 |
|
|
— |
|
1,514 |
|
— |
|
1,514 |
|
|
— |
|
1,930 |
|
— |
|
1,930 |
|
Owner occupied |
|
2,236 |
|
6,972 |
|
— |
|
9,208 |
|
|
— |
|
7,202 |
|
— |
|
7,202 |
|
|
— |
|
6,356 |
|
— |
|
6,356 |
| |
|
17,034 |
|
35,185 |
|
— |
|
52,219 |
|
|
32,683 |
|
8,716 |
|
— |
|
41,399 |
|
|
8,378 |
|
28,399 |
|
— |
|
36,777 |
| Commercial loans (2) |
|
13,029 |
|
13,312 |
|
3 |
|
26,344 |
|
|
3,240 |
|
14,891 |
|
3 |
|
18,134 |
|
|
1,749 |
|
10,446 |
|
3 |
|
12,198 |
| Consumer loans and
overdrafts |
|
— |
|
70 |
|
— |
|
70 |
|
|
— |
|
1 |
|
— |
|
1 |
|
|
— |
|
230 |
|
— |
|
230 |
| Totals |
$ |
30,063 |
$ |
48,567 |
$ |
3 |
$ |
78,633 |
|
$ |
35,923 |
$ |
23,608 |
$ |
3 |
$ |
59,534 |
|
$ |
10,127 |
$ |
39,075 |
$ |
3 |
$ |
49,205 |
__________(1) There were no loans categorized as
“loss” as of the dates presented.(2) In the second
quarter of 2023, we collected $2.8 million in full satisfaction of
a commercial loan relationship in nonaccrual status and classified
as Substandard at March 31, 2023.
Exhibit 8 - Deposits by Country of
Domicile
This table shows the Company’s deposits by country of domicile
of the depositor as of the dates presented.
| (in thousands) |
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
(audited) |
|
Domestic |
$ |
5,113,604 |
|
|
$ |
4,891,873 |
|
|
$ |
4,620,906 |
|
| Foreign: |
|
|
|
|
|
|
Venezuela |
|
1,912,994 |
|
|
|
1,897,199 |
|
|
|
1,911,551 |
|
|
Others |
|
552,973 |
|
|
|
497,654 |
|
|
|
511,742 |
|
| Total foreign |
|
2,465,967 |
|
|
|
2,394,853 |
|
|
|
2,423,293 |
|
| Total deposits |
$ |
7,579,571 |
|
|
$ |
7,286,726 |
|
|
$ |
7,044,199 |
|
|
CONTACTS: |
| Investors |
| Laura Rossi |
|
InvestorRelations@amerantbank.com |
| (305)
460-8728 |
| |
| Media |
| Victoria
Verdeja |
|
MediaRelations@amerantbank.com |
| (305)
441-5541 |
Amerant Bancorp (NASDAQ:AMTBB)
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