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Amerant Reports First Quarter 2024 Results

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Amerant Bancorp Inc. (NYSE: AMTB) reported net income of $10.6 million in Q1 2024, compared to a net loss of $17.1 million in Q4 2023. The company declared a cash dividend of $0.09 per share, showing a positive turnaround in financial performance. Total assets increased to $9.8 billion, with organic loan and deposit growth. Despite a decrease in total gross loans, cash and cash equivalents saw a significant rise. Non-performing assets decreased, and the allowance for credit losses increased slightly. The company's efficiency ratio improved, with positive returns on average assets and equity.
Amerant Bancorp Inc. (NYSE: AMTB) ha riportato un utile netto di 10,6 milioni di dollari nel primo trimestre del 2024, in confronto a una perdita netta di 17,1 milioni di dollari nel quarto trimestre del 2023. La società ha dichiarato un dividendo in contanti di 0,09 dollari per azione, segnando un miglioramento positivo delle prestazioni finanziarie. Gli attivi totali sono aumentati a 9,8 miliardi di dollari, con una crescita organica di prestiti e depositi. Nonostante una diminuzione dei prestiti lordi totali, il contante e gli equivalenti di contante hanno visto un notevole aumento. Gli attivi in sofferenza sono diminuiti e la riserva per perdite su crediti è leggermente aumentata. Il rapporto di efficienza dell'azienda è migliorato, con rendimenti positivi sugli asset medi e sul patrimonio netto.
Amerant Bancorp Inc. (NYSE: AMTB) reportó una utilidad neta de $10.6 millones en el primer trimestre de 2024, comparado con una pérdida neta de $17.1 millones en el cuarto trimestre de 2023. La compañía declaró un dividendo en efectivo de $0.09 por acción, mostrando un giro positivo en el rendimiento financiero. Los activos totales aumentaron a $9.8 mil millones, con un crecimiento orgánico de préstamos y depósitos. A pesar de la disminución en el total de préstamos brutos, el efectivo y equivalentes de efectivo registraron un significativo aumento. Los activos no productivos disminuyeron y la provisión para pérdidas crediticias aumentó ligeramente. La relación de eficiencia de la compañía mejoró, con retornos positivos sobre los activos promedio y el patrimonio.
아메란트 밴코프 인코포레이티드(NYSE: AMTB)는 2024년 1분기에 순이익 1,060만 달러를 보고했는데, 이는 2023년 4분기에 1,710만 달러의 순손실과 비교된다. 회사는 주당 0.09달러의 현금 배당을 선언하여 금융 성과의 긍정적인 전환을 보여주었다. 총 자산은 98억 달러로 증가했으며, 대출 및 예금의 유기적 성장이 있었다. 총 대출은 감소했지만 현금 및 현금 등가물은 크게 증가했다. 부실 자산은 감소했으며, 신용 손실 준비금은 소폭 상승했다. 회사의 효율성 비율이 개선되었으며, 평균 자산 및 자본에 대한 수익률이 긍정적이었다.
Amerant Bancorp Inc. (NYSE: AMTB) a enregistré un bénéfice net de 10,6 millions de dollars au premier trimestre de 2024, par rapport à une perte nette de 17,1 millions de dollars au quatrième trimestre de 2023. La société a déclaré un dividende en espèces de 0,09 dollar par action, indiquant un retournement positif des performances financières. Les actifs totaux ont augmenté à 9,8 milliards de dollars, avec une croissance organique des prêts et des dépôts. Bien que le total des prêts bruts ait diminué, les espèces et les équivalents de caisse ont connu une hausse significative. Les actifs non performants ont diminué et la provision pour pertes sur crédits a légèrement augmenté. Le ratio d'efficience de l'entreprise s'est amélioré, avec des retours positifs sur les actifs moyens et les capitaux propres.
Amerant Bancorp Inc. (NYSE: AMTB) meldete für das erste Quartal 2024 einen Nettogewinn von 10,6 Millionen US-Dollar, verglichen mit einem Nettoverlust von 17,1 Millionen US-Dollar im vierten Quartal 2023. Das Unternehmen kündigte eine Barausschüttung von 0,09 US-Dollar pro Aktie an, was eine positive Wende in der finanziellen Leistung zeigt. Die Gesamtaktiva erhöhten sich auf 9,8 Milliarden US-Dollar, mit organischem Wachstum bei Krediten und Einlagen. Trotz eines Rückgangs der gesamten Bruttokredite verzeichneten Bargeld und Bargeldäquivalente einen signifikanten Anstieg. Nicht leistungsfähige Vermögenswerte nahmen ab und die Rückstellung für Kreditverluste stieg leicht an. Die Effizienzrate des Unternehmens verbesserte sich, mit positiven Renditen auf durchschnittliche Vermögenswerte und Eigenkapital.
Positive
  • Net income of $10.6 million in Q1 2024, compared to a net loss of $17.1 million in Q4 2023.
  • Declared cash dividend of $0.09 per share of common stock.
  • Total assets increased to $9.8 billion, with organic loan and deposit growth.
  • Cash and cash equivalents rose to $659.7 million, up by 104.9% from the previous quarter.
  • Non-performing assets decreased to $50.5 million, with a slight increase in the allowance for credit losses.
  • Efficiency ratio improved to 72.0% in Q1 2024.
  • Positive return on average assets (ROA) of 0.44% and return on average equity (ROE) of 5.69% in Q1 2024.
Negative
  • None.

Insights

Amerant Bancorp Inc.'s disclosure of its Q1 financials, with a noticeable pivot from a net loss in the previous quarter to a net income of $10.6 million, suggests a significant recovery in profitability. The sale of the Houston franchise and the strategic focus on organic loan and deposit growth are indicative of a shift towards streamlining operations, which may reflect in operational efficiency going forward. Investors should note the mixed signals in the report: while total assets grew modestly by 1.0%, gross loans decreased by 3.6%, reflecting the impact of strategic divestments. The increase in cash and cash equivalents by over 100% could signify a strong liquidity position, but the dip in Net Interest Margin (NIM) could point to reduced profitability on interest-earning assets.

From a sector-specific perspective, the 0.6% increase in Amerant's Allowance for Credit Losses (ACL) is conservative compared to some industry peers who have bolstered their ACL more aggressively in anticipation of economic downturns. The loan to deposit ratio now stands at 88.93%, which is healthier than the previous quarter and suggests a stronger liquidity position. However, the drop in Net Interest Income (NII) and the decline in non-interest income highlight a need for diversification in revenue streams. The efficiency ratio improvement from 108.3% to 72.0% is a positive sign, but the industry norm is typically closer to 50%. This indicates there is still room for cost optimization.

In terms of market trends, the strategic choices made by Amerant, such as the sale of Houston-based multifamily loans, align with current industry trends where regional banks are reshaping their portfolios for greater efficiency and risk management. This repositioning is particularly relevant in the current economic climate, where interest rate uncertainty places pressure on banks' NIM. For shareholders, the consistent dividend, sustained at $0.09 per share, provides a measure of predictability and income. However, the reduction in the NIM could signal compression due to rate fluctuations that investors should watch closely, as this can impact future profitability and, consequently, potential dividends.

Board of Directors Declares Quarterly Cash Dividend of $0.09 per Common Share

CORAL GABLES, Fla.--(BUSINESS WIRE)-- Amerant Bancorp Inc. (NYSE: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $10.6 million in the first quarter of 2024, or $0.31 per diluted share, compared to a net loss attributable to the Company of $17.1 million, or $0.51 per diluted share, in the fourth quarter of 2023.

“We continued to invest in our future in the first quarter of 2024, opening new locations in Tampa and Ft. Lauderdale, while adding 12 new team members to our already talented business development teams across south Florida,” stated Jerry Plush, Chairman and CEO. “In addition to our recently announced sale of our Houston franchise, we also executed on our strategic initiatives, resulting in strong organic loan and deposit growth.”

  • Total assets were $9.8 billion, an increase of $101.4 million, or 1.0%, compared to 4Q23.
  • Total gross loans were $7.01 billion, a decrease of $258.5 million, or 3.6%, compared to $7.26 billion in 4Q23. This decrease reflects the completion of the sale of $401 million of Houston-based multifamily loans, offsetting $142.5 million in organic production for the quarter.
  • Cash and cash equivalents were $659.7 million, up $337.8 million, or 104.9%, compared to $321.9 million in 4Q23.
  • Total deposits were $7.88 billion, down $16.6 million, or 0.2%, compared to $7.89 billion in 4Q23. Organic deposit growth, which includes all deposits except institutional and brokered deposits, was $331.8 million, partially offset by declines in brokered deposits of $86.4 million and institutional deposits of $262 million.
  • Total advances from Federal Home Loan Bank (“FHLB”) were $715.0 million, up $70.0 million, or 10.9%, compared to $645.0 million in 4Q23. The Bank had an additional $2.2 billion in availability from the FHLB as of March 31, 2024.
  • Average yield on loans decreased to 7.05% in 1Q24, compared to 7.09% in 4Q23.
  • Total non-performing assets were $50.5 million, down $4.1 million, or 7.5%, compared to $54.6 million as of 4Q23.
  • The allowance for credit losses ("ACL") was $96.1 million, an increase of $0.5 million, or 0.6%, compared to $95.5 million as of 4Q23.
  • Core deposits were $5.63 billion, up $35.4 million, or 0.6%, compared to $5.60 billion in 4Q23. This increase includes the net reduction of $262 million in institutional deposits.
  • Average cost of total deposits increased to 3.00% in 1Q24 compared to 2.88% in 4Q23.
  • Loan to deposit ratio was 88.93% in 1Q24 compared to 92.02% in 4Q23.
  • Assets Under Management and custody (“AUM”) totaled $2.36 billion, up $68.5 million, or 3.0%, from $2.29 billion in 4Q23.
  • Pre-provision net revenue (“PPNR”)(1) was $25.9 million in 1Q24 compared to negative $7.6 million in 4Q23.
  • Net Interest Margin (“NIM”) was 3.51% in 1Q24 compared to 3.72% in 4Q23, which included 16 basis points from a loan recovery received in the previous period.
  • Net Interest Income (“NII”) was $78.0 million, down $3.7 million, or 4.5%, from $81.7 million in 4Q23.
  • Provision for credit losses was $12.4 million in 1Q24, down $0.1 million, or 0.8%, compared to $12.5 million in 4Q23.
  • Non-interest income was $14.5 million in 4Q23, down $5.1 million, or 26.1%, from $19.6 million in 4Q23.
  • Non-interest expense was $66.6 million, down $43.1 million, or 39.3%, from $109.7 million in 4Q23.
  • The efficiency ratio was 72.0% in 1Q24 compared to 108.3% in 4Q23.
  • Return on average assets (“ROA”) was 0.44% in 1Q24 compared to negative 0.71% in 4Q23.
  • Return on average equity (“ROE”) was 5.69% in 1Q24 compared to negative 9.22% in 4Q23.
  • The Company’s Board of Directors declared a cash dividend of $0.09 per share of common stock on April 24, 2024. The dividend is payable on May 30, 2024, to shareholders of record on May 15, 2024.

Additional details on first quarter 2024 results can be found in the 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.

1 Non-GAAP measure, see “Non-GAAP Financial Measures” for more information and Exhibit 2 for a reconciliation to GAAP measures.

First Quarter 2024 Earnings Conference Call

The Company will hold an earnings conference call on Thursday, April 25, 2024 at 9:00 a.m. (Eastern Time) to discuss its first quarter 2024 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. (NYSE: AMTB)

Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S. with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the largest community bank headquartered in Florida. The Bank operates 24 banking centers – 17 in South Florida, 1 in Tampa, FL and 6 in the Houston, Texas area. For more information, visit investor.amerantbank.com.

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, 2023 filed on March 7, 2024 (the “Form 10-K”), 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 months ended March 31, 2024, December 31, 2023, and March 31, 2023, may not reflect our results of operations for our fiscal year ending, or financial condition, as of December 31, 2024, or any other period of time or date.

Non-GAAP Financial Measures

The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with non-GAAP financial measures, such as “pre-provision net revenue (PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core noninterest income”, “core noninterest expenses”, “core net income”, “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 2024, 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, Bank owned life insurance restructure 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 GAAP 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)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Consolidated Balance Sheets

 

 

(audited)

 

 

 

 

 

 

Total assets

$

9,817,772

 

$

9,716,327

 

$

9,345,700

 

$

9,519,526

 

$

9,495,302

Total investments

 

1,578,568

 

 

1,496,975

 

 

1,314,367

 

 

1,315,303

 

 

1,347,697

Total gross loans (1)

 

7,006,383

 

 

7,264,912

 

 

7,142,596

 

 

7,216,958

 

 

7,115,035

Allowance for credit losses

 

96,050

 

 

95,504

 

 

98,773

 

 

105,956

 

 

84,361

Total deposits

 

7,878,243

 

 

7,894,863

 

 

7,546,912

 

 

7,579,571

 

 

7,286,726

Core deposits (2)

 

5,633,165

 

 

5,597,766

 

 

5,244,034

 

 

5,498,017

 

 

5,357,386

Advances from the Federal Home Loan Bank

 

715,000

 

 

645,000

 

 

595,000

 

 

770,000

 

 

1,052,012

Senior notes

 

59,605

 

 

59,526

 

 

59,447

 

 

59,368

 

 

59,289

Subordinated notes

 

29,497

 

 

29,454

 

 

29,412

 

 

29,369

 

 

29,326

Junior subordinated debentures

 

64,178

 

 

64,178

 

 

64,178

 

 

64,178

 

 

64,178

Stockholders' equity (3)(4)

 

738,085

 

 

736,068

 

 

719,787

 

 

720,956

 

 

729,056

Assets under management and custody (5)

 

2,357,621

 

 

2,289,135

 

 

2,092,200

 

 

2,147,465

 

 

2,107,603

 

Three Months Ended

(in thousands, except percentages, share data and per share amounts)

March 31,
2024

 

December
31, 2023

 

September
30, 2023

 

June 30,
2023

 

March 31,
2023

Consolidated Results of Operations

 

 

 

 

 

 

 

 

 

Net interest income

$

77,968

 

 

$

81,677

 

 

$

78,577

 

 

$

83,877

 

 

$

82,333

 

Provision for credit losses (6)

 

12,400

 

 

 

12,500

 

 

 

8,000

 

 

 

29,077

 

 

 

11,700

 

Noninterest income

 

14,488

 

 

 

19,613

 

 

 

21,921

 

 

 

26,619

 

 

 

19,343

 

Noninterest expense

 

66,594

 

 

 

109,702

 

 

 

64,420

 

 

 

72,500

 

 

 

64,733

 

Net income (loss) attributable to Amerant Bancorp Inc. (7)

 

10,568

 

 

 

(17,123

)

 

 

22,119

 

 

 

7,308

 

 

 

20,186

 

Effective income tax rate

 

21.50

%

 

 

14.21

%

 

 

22.57

%

 

 

21.00

%

 

 

21.00

%

 

 

 

 

 

 

 

 

 

 

Common Share Data

 

 

 

 

 

 

 

 

 

Stockholders' book value per common share

$

21.90

 

 

$

21.90

 

 

$

21.43

 

 

$

21.37

 

 

$

21.56

 

Tangible stockholders' equity (book value) per common share (8)

$

21.16

 

 

$

21.16

 

 

$

20.63

 

 

$

20.66

 

 

$

20.84

 

Tangible stockholders' equity (book value) per common share, adjusted for unrealized losses on debt securities held to maturity (8)

$

20.60

 

 

$

20.68

 

 

$

19.86

 

 

$

20.11

 

 

$

20.38

 

Basic earnings (loss) per common share

$

0.32

 

 

$

(0.51

)

 

$

0.66

 

 

$

0.22

 

 

$

0.60

 

Diluted earnings (loss) per common share (9)

$

0.31

 

 

$

(0.51

)

 

$

0.66

 

 

$

0.22

 

 

$

0.60

 

Basic weighted average shares outstanding

 

33,538,069

 

 

 

33,432,871

 

 

 

33,489,560

 

 

 

33,564,770

 

 

 

33,559,718

 

Diluted weighted average shares outstanding (9)

 

33,821,562

 

 

 

33,432,871

 

 

 

33,696,620

 

 

 

33,717,702

 

 

 

33,855,994

 

Cash dividend declared per common share (4)

$

0.09

 

 

$

0.09

 

 

$

0.09

 

 

$

0.09

 

 

$

0.09

 

 

Three Months Ended

 

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Other Financial and Operating Data (10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profitability Indicators (%)

 

 

 

 

 

 

 

 

 

Net interest income / Average total interest earning assets (NIM) (11)

3.51

%

 

3.72

%

 

3.57

%

 

3.83

%

 

3.90

%

Net income (loss) / Average total assets (ROA) (12)

0.44

%

 

(0.71

)%

 

0.92

%

 

0.31

%

 

0.88

%

Net income (loss) / Average stockholders' equity (ROE) (13)

5.69

%

 

(9.22

)%

 

11.93

%

 

3.92

%

 

11.15

%

Noninterest income / Total revenue (14)

15.67

%

 

19.36

%

 

21.81

%

 

24.09

%

 

19.02

%

 

 

 

 

 

 

 

 

 

 

Capital Indicators (%)

 

 

 

 

 

 

 

 

 

Total capital ratio (15)

12.50

%

 

12.12

%

 

12.70

%

 

12.39

%

 

12.36

%

Tier 1 capital ratio (16)

10.88

%

 

10.54

%

 

11.08

%

 

10.77

%

 

10.88

%

Tier 1 leverage ratio (17)

8.73

%

 

8.84

%

 

9.05

%

 

8.91

%

 

9.04

%

Common equity tier 1 capital ratio (CET1) (18)

10.11

%

 

9.79

%

 

10.30

%

 

10.00

%

 

10.10

%

Tangible common equity ratio (19)

7.28

%

 

7.34

%

 

7.44

%

 

7.34

%

 

7.44

%

Tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity (20)

7.10

%

 

7.18

%

 

7.18

%

 

7.16

%

 

7.29

%

 

 

 

 

 

 

 

 

 

 

Liquidity Ratios (%)

 

 

 

 

 

 

 

 

 

Loans to Deposits (21)

88.93

%

 

92.02

%

 

94.64

%

 

95.22

%

 

97.64

%

 

 

 

 

 

 

 

 

 

 

Asset Quality Indicators (%)

 

 

 

 

 

 

 

 

 

Non-performing assets / Total assets (22)

0.51

%

 

0.56

%

 

0.57

%

 

0.71

%

 

0.51

%

Non-performing loans / Total gross loans (1) (23)

0.43

%

 

0.47

%

 

0.46

%

 

0.65

%

 

0.31

%

Allowance for credit losses / Total non-performing loans (23)

317.01

%

 

277.63

%

 

297.55

%

 

224.51

%

 

380.31

%

Allowance for credit losses / Total loans held for investment

1.38

%

 

1.39

%

 

1.40

%

 

1.48

%

 

1.20

%

Net charge-offs / Average total loans held for investment (24)

0.69

%

 

0.85

%

 

0.82

%

 

0.42

%

 

0.64

%

 

 

 

 

 

 

 

 

 

 

Efficiency Indicators (% except FTE)

 

 

 

 

 

 

 

 

 

Noninterest expense / Average total assets

2.75

%

 

4.57

%

 

2.69

%

 

3.06

%

 

2.82

%

Salaries and employee benefits / Average total assets

1.36

%

 

1.38

%

 

1.31

%

 

1.45

%

 

1.52

%

Other operating expenses/ Average total assets (25)

1.39

%

 

3.20

%

 

1.38

%

 

1.62

%

 

1.30

%

Efficiency ratio (26)

72.03

%

 

108.30

%

 

64.10

%

 

65.61

%

 

63.67

%

Full-Time-Equivalent Employees (FTEs) (27)

696

 

 

682

 

 

700

 

 

710

 

 

722

 

 

Three Months Ended

(in thousands, except percentages and per share amounts)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Core Selected Consolidated Results of Operations and Other Data (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue (PPNR)

$

25,862

 

 

$

(7,595

)

 

$

36,456

 

 

$

38,258

 

 

$

37,187

 

Core pre-provision net revenue (Core PPNR)

$

26,068

 

 

$

29,811

 

 

$

35,880

 

 

$

39,196

 

 

$

37,103

 

Core net income

$

10,730

 

 

$

15,272

 

 

$

21,664

 

 

$

8,048

 

 

$

20,120

 

Core basic earnings per common share

 

0.32

 

 

 

0.46

 

 

 

0.65

 

 

 

0.24

 

 

 

0.60

 

Core earnings per diluted common share (9)

 

0.32

 

 

 

0.46

 

 

 

0.64

 

 

 

0.24

 

 

 

0.59

 

Core net income / Average total assets (Core ROA) (12)

 

0.44

%

 

 

0.64

%

 

 

0.91

%

 

 

0.34

%

 

 

0.88

%

Core net income / Average stockholders' equity (Core ROE) (13)

 

5.78

%

 

 

8.23

%

 

 

11.69

%

 

 

4.32

%

 

 

11.11

%

Core efficiency ratio (28)

 

71.87

%

 

 

69.67

%

 

 

62.08

%

 

 

60.29

%

 

 

62.47

%

__________________

(1)

Total gross loans include loans held for investment net of unamortized deferred loan origination fees and costs, as well as loans held for sale. As of March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, mortgage loans held for sale carried at fair value totaled $48.9 million, $26.2 million, $26.0 million, $49.9 million and $65.3 million, respectively. In addition, December 31, 2023 and September 30, 2023, includes $365.2 million and $43.3 million in loans held for sale carried at the lower of estimated fair value or cost.

(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”). There were no repurchases of Class A common stock in the first quarter of 2024 and fourth quarter of 2023. In the third, second and first quarters of 2023, the Company repurchased an aggregate of 142,188 shares of Class A common stock, 95,262 shares of Class A common stock and 22,403 shares of Class A common stock, respectively, at a weighted average price of $19.05 per share, $17.42 per share and $25.25 per share, respectively, under the 2023 Class A Common Stock Repurchase Program. In the third, second and first quarters of 2023, the aggregate purchase price for these transactions was approximately $2.7 million, $1.7 million and $0.6 million, respectively, including transaction costs.

(4)

For the first quarter of 2024 as well as each of the fourth, third, second and first quarters of 2023, the Company’s Board of Directors declared cash dividends of $0.09 per share of the Company’s common stock and paid an aggregate amount of $3.0 million per quarter in connection with these dividends. The dividend declared in the first quarter of 2024 was paid on February 29, 2024 to shareholders of record at the close of business on February 14, 2024. See 2023 Form 10-K for more information on previous dividend payments in 2023.

(5)

Assets held for clients in an agency or fiduciary capacity which are not assets of the Company and therefore are not included in the consolidated financial statements.

(6)

In the first quarter of 2024 and in the fourth and third quarter of 2023, includes, $12.4 million, $12.0 million and $7.4 million of provision for credit losses on loans. Provision for unfunded commitments (contingencies) in the fourth and third quarter of 2023, were $0.5 million and $0.6 million, respectively, while there was none in the first quarter of 2024. For all other periods shown, includes provision for credit losses on loans. There was no provision for credit losses on unfunded commitments in the second quarter of 2023. In the first quarter of 2023, the provision for credit losses on unfunded commitments was $0.3 million.

(7)

In the three months ended December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, net income excludes losses of $0.8 million, $0.4 million, $0.3 million and $0.2 million, respectively, attributable to a minority interest in Amerant Mortgage LLC. In the fourth quarter of 2023, the Company increased its ownership interest in Amerant Mortgage to 100% from 80% at September 30, 2023. This transaction had no material impact to the Company’s results of operations in the three months ended December 31, 2023. In connection with the change in ownership interest, which brought the minority interest share to zero, the Company derecognized the equity attributable to noncontrolling interest of $3.8 million at December 31, 2023, with a corresponding reduction to additional paid-in capital.

(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 assets less goodwill and other intangible assets. Other intangible assets primarily consist of naming rights and 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. See 2023 Form 10-K for more details on charge-offs for all previous periods.

(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 March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, includes 65, 67, 98, 93, and 94 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, Bank owned life insurance restructure 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)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Amerant Bancorp Inc.

$

10,568

 

 

$

(17,123

)

 

$

22,119

 

 

$

7,308

 

 

$

20,186

 

Plus: provision for credit losses (1)

 

12,400

 

 

 

12,500

 

 

 

8,000

 

 

 

29,077

 

 

 

11,700

 

Plus: provision for income tax expense (benefit)

 

2,894

 

 

 

(2,972

)

 

 

6,337

 

 

 

1,873

 

 

 

5,301

 

Pre-provision net revenue (PPNR)

 

25,862

 

 

 

(7,595

)

 

 

36,456

 

 

 

38,258

 

 

 

37,187

 

Plus: non-routine noninterest expense items

 

—

 

 

 

43,094

 

 

 

6,303

 

 

 

13,383

 

 

 

3,372

 

Less: non-routine noninterest income items

 

206

 

 

 

(5,688

)

 

 

(6,879

)

 

 

(12,445

)

 

 

(3,456

)

Core pre-provision net revenue (Core PPNR)

$

26,068

 

 

$

29,811

 

 

$

35,880

 

 

$

39,196

 

 

$

37,103

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

$

14,488

 

 

$

19,613

 

 

$

21,921

 

 

$

26,619

 

 

$

19,343

 

Less: Non-routine noninterest income items:

 

 

 

 

 

 

 

 

 

Derivatives (losses) gains, net

 

(152

)

 

 

(151

)

 

 

(77

)

 

 

242

 

 

 

14

 

Securities gains (losses), net

 

(54

)

 

 

33

 

 

 

(54

)

 

 

(1,237

)

 

 

(9,731

)

Bank owned life insurance charge (2)

 

—

 

 

 

(655

)

 

 

—

 

 

 

—

 

 

 

—

 

Gains on early extinguishment of FHLB advances, net

 

—

 

 

 

6,461

 

 

 

7,010

 

 

 

13,440

 

 

 

13,173

 

Total non-routine noninterest income items

$

(206

)

 

$

5,688

 

 

$

6,879

 

 

$

12,445

 

 

$

3,456

 

Core noninterest income

$

14,694

 

 

$

13,925

 

 

$

15,042

 

 

$

14,174

 

 

$

15,887

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expenses

$

66,594

 

 

$

109,702

 

 

$

64,420

 

 

$

72,500

 

 

$

64,733

 

Less: non-routine noninterest expense items

 

 

 

 

 

 

 

 

 

Restructuring costs (3):

 

 

 

 

 

 

 

 

 

Staff reduction costs (4)

 

—

 

 

 

1,120

 

 

 

489

 

 

 

2,184

 

 

 

213

 

Contract termination costs (5)

 

—

 

 

 

—

 

 

 

—

 

 

 

1,550

 

 

 

—

 

Consulting and other professional fees and software expenses(6)

 

—

 

 

 

1,629

 

 

 

—

 

 

 

2,060

 

 

 

2,690

 

Disposition of fixed assets (7)

 

—

 

 

 

—

 

 

 

—

 

 

 

1,419

 

 

 

—

 

Branch closure expenses and related charges (8)

 

—

 

 

 

—

 

 

 

252

 

 

 

1,558

 

 

 

469

 

Total restructuring costs

$

—

 

 

$

2,749

 

 

$

741

 

 

$

8,771

 

 

$

3,372

 

Other non-routine noninterest expense items:

 

 

 

 

 

 

 

 

 

Losses on loans held for sale carried at the lower cost or fair value (9)

 

—

 

 

 

37,495

 

 

 

5,562

 

 

 

—

 

 

 

—

 

Loss on sale of repossessed assets and other real estate owned valuation expense (10)

 

—

 

 

 

—

 

 

 

—

 

 

 

2,649

 

 

 

—

 

Goodwill and intangible assets impairment

 

—

 

 

 

1,713

 

 

 

—

 

 

 

—

 

 

 

—

 

Bank owned life insurance enchancement costs (2)

 

—

 

 

 

1,137

 

 

 

—

 

 

 

—

 

 

 

—

 

Impairment charge on investment carried at cost

 

—

 

 

 

—

 

 

 

—

 

 

 

1,963

 

 

 

—

 

Total non-routine noninterest expense items

$

—

 

 

$

43,094

 

 

$

6,303

 

 

$

13,383

 

 

$

3,372

 

Core noninterest expenses

$

66,594

 

 

$

66,608

 

 

$

58,117

 

 

$

59,117

 

 

$

61,361

 

 

Three Months Ended,

 

(in thousands, except percentages and per share amounts)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

 

 

 

Net income (loss) attributable to Amerant Bancorp Inc.

$

10,568

 

 

$

(17,123

)

 

$

22,119

 

 

$

7,308

 

 

$

20,186

 

Plus after-tax non-routine items in noninterest expense:

 

 

 

 

 

 

 

 

 

Non-routine items in noninterest expense before income tax effect

 

—

 

 

 

43,094

 

 

 

6,303

 

 

 

13,383

 

 

 

3,372

 

Income tax effect (11)

 

—

 

 

 

(8,887

)

 

 

(1,486

)

 

 

(2,811

)

 

 

(708

)

Total after-tax non-routine items in noninterest expense

 

—

 

 

 

34,207

 

 

 

4,817

 

 

 

10,572

 

 

 

2,664

 

Less after-tax non-routine items in noninterest income:

 

 

 

 

 

 

 

 

 

Non-routine items in noninterest income before income tax effect

 

206

 

 

 

(5,688

)

 

 

(6,879

)

 

 

(12,445

)

 

 

(3,456

)

Income tax effect (11)

 

(44

)

 

 

1,032

 

 

 

1,607

 

 

 

2,613

 

 

 

726

 

Total after-tax non-routine items in noninterest income

 

162

 

 

 

(4,656

)

 

 

(5,272

)

 

 

(9,832

)

 

 

(2,730

)

BOLI enhancement tax impact (2)

 

—

 

 

 

2,844

 

 

 

—

 

 

 

—

 

 

 

—

 

Core net income

$

10,730

 

 

$

15,272

 

 

$

21,664

 

 

$

8,048

 

 

$

20,120

 

 

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per share

$

0.32

 

 

$

(0.51

)

 

$

0.66

 

 

$

0.22

 

 

$

0.60

 

Plus: after tax impact of non-routine items in noninterest expense and BOLI tax impact (13)

 

—

 

 

 

1.11

 

 

 

0.14

 

 

 

0.31

 

 

 

0.08

 

(Less): after tax impact of non-routine items in noninterest income

 

—

 

 

 

(0.14

)

 

 

(0.15

)

 

 

(0.29

)

 

 

(0.08

)

Total core basic earnings per common share

$

0.32

 

 

$

0.46

 

 

$

0.65

 

 

$

0.24

 

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

Diluted (loss) earnings per share (12)

$

0.31

 

 

$

(0.51

)

 

$

0.66

 

 

$

0.22

 

 

$

0.60

 

Plus: after tax impact of non-routine items in noninterest expense and BOLI tax impact (13)

 

—

 

 

 

1.11

 

 

 

0.14

 

 

 

0.31

 

 

 

0.08

 

(Less): after tax impact of non-routine items in noninterest income

 

0.01

 

 

 

(0.14

)

 

 

(0.16

)

 

 

(0.29

)

 

 

(0.09

)

Total core diluted earnings per common share

$

0.32

 

 

$

0.46

 

 

$

0.64

 

 

$

0.24

 

 

$

0.59

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) / Average total assets (ROA)

 

0.44

%

 

 

(0.71

)%

 

 

0.92

%

 

 

0.31

%

 

 

0.88

%

Plus: after tax impact of non-routine items in noninterest expense and BOLI tax impact (13)

 

—

%

 

 

1.55

%

 

 

0.20

%

 

 

0.45

%

 

 

0.12

%

Plus (less): after tax impact of non-routine items in noninterest income

 

—

%

 

 

(0.20

)%

 

 

(0.21

)%

 

 

(0.42

)%

 

 

(0.12

)%

Core net income / Average total assets (Core ROA)

 

0.44

%

 

 

0.64

%

 

 

0.91

%

 

 

0.34

%

 

 

0.88

%

 

 

 

 

 

 

 

 

 

 

Net income (loss) / Average stockholders' equity (ROE)

 

5.69

%

 

 

(9.22

)%

 

 

11.93

%

 

 

3.92

%

 

 

11.15

%

Plus: after tax impact of non-routine items in noninterest expense and BOLI tax impact (13)

 

—

%

 

 

19.96

%

 

 

2.60

%

 

 

5.68

%

 

 

1.47

%

Plus (less): after tax impact of non-routine items in noninterest income

 

0.09

%

 

 

(2.51

)%

 

 

(2.84

)%

 

 

(5.28

)%

 

 

(1.51

)%

Core net income / Average stockholders' equity (Core ROE)

 

5.78

%

 

 

8.23

%

 

 

11.69

%

 

 

4.32

%

 

 

11.11

%

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

72.03

%

 

 

108.30

%

 

 

64.10

%

 

 

65.61

%

 

 

63.67

%

(Less): impact of non-routine items in noninterest expense

 

—

%

 

 

(42.54

)%

 

 

(6.27

)%

 

 

(12.11

)%

 

 

(3.32

)%

(Less) plus: impact of non-routine items in noninterest income

 

(0.16

)%

 

 

3.91

%

 

 

4.25

%

 

 

6.79

%

 

 

2.12

%

Core efficiency ratio

 

71.87

%

 

 

69.67

%

 

 

62.08

%

 

 

60.29

%

 

62.4

%

 

Three Months Ended,

(in thousands, except percentages, share data and per share amounts)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

 

 

 

 

 

Stockholders' equity

$

738,085

 

 

$

736,068

 

 

$

719,787

 

 

$

720,956

 

 

$

729,056

 

Less: goodwill and other intangibles (14)

 

(24,935

)

 

 

(25,029

)

 

 

(26,818

)

 

 

(24,124

)

 

 

(24,292

)

Tangible common stockholders' equity

$

713,150

 

 

$

711,039

 

 

$

692,969

 

 

$

696,832

 

 

$

704,764

 

Total assets

 

9,817,772

 

 

 

9,716,327

 

 

 

9,345,700

 

 

 

9,519,526

 

 

 

9,495,302

 

Less: goodwill and other intangibles (14)

 

(24,935

)

 

 

(25,029

)

 

 

(26,818

)

 

 

(24,124

)

 

 

(24,292

)

Tangible assets

$

9,792,837

 

 

$

9,691,298

 

 

$

9,318,882

 

 

$

9,495,402

 

 

$

9,471,010

 

Common shares outstanding

 

33,709,395

 

 

 

33,603,242

 

 

 

33,583,621

 

 

 

33,736,159

 

 

 

33,814,260

 

Tangible common equity ratio

 

7.28

%

 

 

7.34

%

 

 

7.44

%

 

 

7.34

%

 

 

7.44

%

Stockholders' book value per common share

$

21.90

 

 

$

21.90

 

 

$

21.43

 

 

$

21.37

 

 

$

21.56

 

Tangible stockholders' equity book value per common share

$

21.16

 

 

$

21.16

 

 

$

20.63

 

 

$

20.66

 

 

$

20.84

 

 

 

 

 

 

 

 

 

 

 

Tangible common stockholders' equity

$

713,150

 

 

$

711,039

 

 

$

692,969

 

 

$

696,832

 

 

$

704,764

 

Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (15)

 

(18,729

)

 

 

(16,197

)

 

 

(26,138

)

 

 

(18,503

)

 

 

(15,542

)

Tangible common stockholders' equity, adjusted for net unrealized accumulated losses on debt securities held to maturity

$

694,421

 

 

$

694,842

 

 

$

666,831

 

 

$

678,329

 

 

$

689,222

 

Tangible assets

$

9,792,837

 

 

$

9,691,298

 

 

$

9,318,882

 

 

$

9,495,402

 

 

$

9,471,010

 

Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (15)

 

(18,729

)

 

 

(16,197

)

 

 

(26,138

)

 

 

(18,503

)

 

 

(15,542

)

Tangible assets, adjusted for net unrealized accumulated losses on debt securities held to maturity

$

9,774,108

 

 

$

9,675,101

 

 

$

9,292,744

 

 

$

9,476,899

 

 

$

9,455,468

 

Common shares outstanding

 

33,709,395

 

 

 

33,603,242

 

 

 

33,583,621

 

 

 

33,736,159

 

 

 

33,814,260

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio, adjusted for net unrealized accumulated losses on debt securities held to maturity

 

7.10

%

 

 

7.18

%

 

 

7.18

%

 

 

7.16

%

 

 

7.29

%

Tangible stockholders' book value per common share, adjusted for net unrealized accumulated losses on debt securities held to maturity

$

20.60

 

 

$

20.68

 

 

$

19.86

 

 

$

20.11

 

 

$

20.38

 

____________

(1)

In the first quarter of 2024 and in the fourth and third quarter of 2023, includes $12.4 million, $12.0 million and $7.4 million of provision for credit losses on loans, respectively. Provision for unfunded commitments (contingencies) in the fourth and third quarter of 2023, were $0.5 million and $0.6 million, respectively, while there was none in the first quarter of 2024. For all other periods shown, includes provision for credit losses on loans. There was no provision for credit losses on unfunded commitments in the second quarter of 2023. In the first quarter of 2023, the provision for credit losses on unfunded commitments was $0.3 million.

(2)

In the fourth quarter of 2023, the Company completed a restructuring of its bank-owned life insurance (“BOLI”) program. This was executed through a combination of a 1035 exchange and a surrender and reinvestment into higher-yielding general account with a new investment grade insurance carrier. This transaction allowed for higher team member participation through an enhanced split-dollar plan. Estimated improved yields resulting from the enhancement have an earn-back period of approximately 2 years. In the fourth quarter of 2023, we recorded total additional expenses and charges of $4.6 million in connection with this transaction, including: (i) a reduction of $0.7 million to the cash surrender value of BOLI; (ii) transaction costs of $1.1 million, and (iii) income tax expense of $2.8 million.

(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)

Staff reduction costs consist of severance expenses related to organizational rationalization.

(5)

Contract termination and related costs associated with third party vendors resulting from the Company’s engagement of FIS.

(6)

In the three months ended December 31, 2023, includes an aggregate of $1.6 million of nonrecurrent expenses in connection with the engagement of FIS and, to a lesser extent, software expenses related to legacy applications running in parallel to new core banking applications. There were no significant nonrecurrent expenses in connection with engagement of FIS in the three months ended March 31, 2024 and September 30, 2023. In the three months ended June 30, 2023 and March 31, 2023, includes expenses of $2.0 million and $2.6 million, respectively, in connection with the engagement of FIS.

(7)

Includes 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.

(8)

In the three months ended September 30, 2023, consists of expenses in connection with the closure of a branch in Houston, Texas in 2023. In addition, in the three months ended June 30, 2023 includes $0.9 million of accelerated amortization of leasehold improvements and $0.6 million of right-of-use, or ROU asset impairment, associated with the closure of a branch in Miami, FL in 2023. Furthermore, 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.

(9)

In the three months ended December 31, 2023, includes (i) fair value adjustment of $35.5 million related to an aggregate of $401 million in Houston-based CRE loans held for sale which are carried at the lower of fair value or cost, and (ii) a loss on sale of $2.0 million related to a New York-based CRE loan previously carried at the lower of fair value or cost. In the three months ended September 30, 2023, includes a fair value adjustment of $5.6 million related to a New York-based CRE loan held for sale carried at the lower of fair value or cost.

(10)

In the three months ended June 30, 2023, amount represents the loss on sale of repossessed assets in connection with our equipment-financing activities.

(11)

In the three months ended March 31, 2024 and March 31, 2023, amounts were calculated based upon the effective tax rate for the period of 21.50% and 21.00%, respectively. For all of the other periods shown, amounts represent the difference between the prior and current period year-to-date tax effect.

(12)

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)

In the three months ended December 31, 2023, per share amounts and percentages were calculated using the after-tax impact of non-routine items in noninterest expense of $34.2 million and BOLI tax impact of $2.8 million in the same period. In all other periods shown, per share amounts and percentages were calculated using the after tax impact of non-routine items in noninterest expense.

(14)

At March 31, 2024, December 31, 2023 and September 30, 2023, other intangible assets primarily consist of naming rights of $2.4 million, $2.5 million and $2.7 million, respectively, and mortgage servicing rights (“MSRs”) of $1.4 million, $1.4 million and $1.3 million, respectively. At June 30, 2023 and March 31, 2023, other intangible assets primarily consist of MSRs of $1.3 million and $1.4 million, respectively. Other intangible assets are included in other assets in the Company’s consolidated balance sheets.

(15)

As of March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, amounts were calculated based upon the fair value on debt securities held to maturity, and assuming a tax rate of 25.40%, 25.36%, 25.51%, 25.46% and 25.53%, 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

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

(in thousands, except percentages)

Average
Balances

Income/
Expense

Yield/
Rates

 

Average
Balances

Income/
Expense

Yield/
Rates

 

Average
Balances

Income/
Expense

Yield/
Rates

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loan portfolio, net (1)(2)

$

6,995,974

$

122,705

7.05

%

 

$

7,107,222

$

127,090

7.09

%

 

$

6,901,352

$

108,501

6.38

%

Debt securities available for sale (3) (4)

 

1,239,762

 

13,186

4.28

%

 

 

1,060,113

 

11,603

4.34

%

 

 

1,058,831

 

10,173

3.90

%

Debt securities held to maturity (5)

 

224,877

 

1,967

3.52

%

 

 

227,765

 

1,951

3.40

%

 

 

240,627

 

2,112

3.56

%

Debt securities held for trading

 

—

 

—

—

%

 

 

—

 

—

—

%

 

 

18

 

—

—

%

Equity securities with readily determinable fair value not held for trading

 

2,477

 

55

8.93

%

 

 

2,450

 

12

1.94

%

 

 

4,886

 

—

—

%

Federal Reserve Bank and FHLB stock

 

50,180

 

883

7.08

%

 

 

49,741

 

894

7.13

%

 

 

57,803

 

1,014

7.11

%

Deposits with banks

 

422,841

 

5,751

5.47

%

 

 

265,657

 

3,940

5.88

%

 

 

302,791

 

3,330

4.46

%

Other short-term investments

 

5,932

 

78

5.29

%

 

 

5,928

 

79

5.29

%

 

 

—

 

—

—

%

Total interest-earning assets

 

8,942,043

 

144,625

6.50

%

 

 

8,718,876

 

145,569

6.62

%

 

 

8,566,308

 

125,130

5.92

%

Total non-interest-earning assets (6)

 

812,523

 

 

 

 

794,844

 

 

 

 

739,522

 

 

Total assets

$

9,754,566

 

 

 

$

9,513,720

 

 

 

$

9,305,830

 

 

 

Three Months Ended

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

(in thousands, except percentages)

Average
Balances

Income/
Expense

Yield/
Rates

 

Average
Balances

Income/
Expense

Yield/
Rates

 

Average
Balances

Income/
Expense

Yield/
Rates

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Checking and saving accounts

 

 

 

 

 

 

 

 

 

 

 

Interest bearing DDA

$

2,445,362

 

$

17,736

2.92

%

 

$

2,435,871

 

$

16,350

2.66

%

 

$

2,342,620

 

$

12,855

2.23

%

Money market

 

1,431,949

 

 

14,833

4.17

%

 

 

1,259,859

 

 

13,917

4.38

%

 

 

1,333,465

 

 

7,881

2.40

%

Savings

 

262,528

 

 

28

0.04

%

 

 

271,307

 

 

30

0.04

%

 

 

299,501

 

 

46

0.06

%

Total checking and saving accounts

 

4,139,839

 

 

32,597

3.17

%

 

 

3,967,037

 

 

30,297

3.03

%

 

 

3,975,586

 

 

20,782

2.12

%

Time deposits

 

2,290,587

 

 

26,124

4.59

%

 

 

2,276,720

 

 

24,985

4.35

%

 

 

1,767,603

 

 

12,834

2.94

%

Total deposits

 

6,430,426

 

 

58,721

3.67

%

 

 

6,243,757

 

 

55,282

3.51

%

 

 

5,743,189

 

 

33,616

2.37

%

Securities sold under agreements to repurchase

 

—

 

 

—

—

%

 

 

106

 

 

2

7.49

%

 

 

—

 

 

—

—

%

Advances from the FHLB (7)

 

644,753

 

 

5,578

3.48

%

 

 

635,272

 

 

6,225

3.89

%

 

 

959,392

 

 

6,763

2.86

%

Senior notes

 

59,567

 

 

943

6.37

%

 

 

59,488

 

 

941

6.28

%

 

 

59,250

 

 

942

6.45

%

Subordinated notes

 

29,476

 

 

361

4.93

%

 

 

29,433

 

 

361

4.87

%

 

 

29,306

 

 

361

5.00

%

Junior subordinated debentures

 

64,178

 

 

1,054

6.61

%

 

 

64,178

 

 

1,081

6.68

%

 

 

64,178

 

 

1,115

7.05

%

Total interest-bearing liabilities

 

7,228,400

 

 

66,657

3.71

%

 

 

7,032,234

 

 

63,892

3.60

%

 

 

6,855,315

 

 

42,797

2.53

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

1,435,226

 

 

 

 

 

1,381,157

 

 

 

 

 

1,377,966

 

 

 

Accounts payable, accrued liabilities and other liabilities

 

344,197

 

 

 

 

 

363,711

 

 

 

 

 

338,351

 

 

 

Total non-interest-bearing liabilities

 

1,779,423

 

 

 

 

 

1,744,868

 

 

 

 

 

1,716,317

 

 

 

Total liabilities

 

9,007,823

 

 

 

 

 

8,777,102

 

 

 

 

 

8,571,632

 

 

 

Stockholders’ equity

 

746,743

 

 

 

 

 

736,618

 

 

 

 

 

734,198

 

 

 

Total liabilities and stockholders' equity

$

9,754,566

 

 

 

 

$

9,513,720

 

 

 

 

$

9,305,830

 

 

 

Excess of average interest-earning assets over average interest-bearing liabilities

$

1,713,643

 

 

 

 

$

1,686,642

 

 

 

 

$

1,710,993

 

 

 

Net interest income

 

$

77,968

 

 

 

$

81,677

 

 

 

$

82,333

 

Net interest rate spread

 

 

2.79

%

 

 

 

3.02

%

 

 

 

3.39

%

Net interest margin (8)

 

 

3.51

%

 

 

 

3.72

%

 

 

 

3.90

%

Cost of total deposits (9)

 

 

3.00

%

 

 

 

2.88

%

 

 

 

1.91

%

Ratio of average interest-earning assets to average interest-bearing liabilities

 

123.71

%

 

 

 

 

123.98

%

 

 

 

 

124.96

%

 

 

Average non-performing loans/ Average total loans

 

0.46

%

 

 

 

 

0.49

%

 

 

 

 

0.46

%

 

 

___________

(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 credit losses was $92.3 million, $92.7 million, and $81.4 million in the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. The average balance of total loans held for sale was $180.5 million, $100.7 million and $66.4 million in the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(2) Includes average non-performing loans of $32.6 million, $35.1 million and $31.8 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, 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 $101.5 million, $142.1 million, and $104.9 million in the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(4) Includes nontaxable securities with average balances of $18.3 million, $17.8 million and $19.7 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. The tax equivalent yield for these nontaxable securities was 4.68%, 4.78% and 4.56% for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. In 2024 and 2023, 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 $48.5 million, $48.9 million and $50.7 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. The tax equivalent yield for these nontaxable securities was 4.25%, 4.26% and 4.20% for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. In 2024 and 2023, 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

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

(in thousands, except percentages)

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

 

Deposits and service fees

$

4,325

 

 

29.9

%

 

$

4,424

 

 

22.5

%

 

$

4,955

 

 

25.6

%

Brokerage, advisory and fiduciary activities

 

4,327

 

 

29.9

%

 

 

4,249

 

 

21.7

%

 

 

4,182

 

 

21.6

%

Change in cash surrender value of bank owned life insurance (“BOLI”)(1)

 

2,342

 

 

16.2

%

 

 

849

 

 

4.3

%

 

 

1,412

 

 

7.3

%

Cards and trade finance servicing fees

 

1,223

 

 

8.4

%

 

 

1,238

 

 

6.3

%

 

 

533

 

 

2.8

%

Gain on early extinguishment of FHLB advances, net

 

—

 

 

—

%

 

 

6,461

 

 

32.9

%

 

 

13,173

 

 

68.1

%

Securities (losses) gains, net (2)

 

(54

)

 

(0.4

)%

 

 

33

 

 

0.2

%

 

 

(9,731

)

 

(50.3

)%

Loan-level derivative income (3)

 

466

 

 

3.2

%

 

 

837

 

 

4.3

%

 

 

2,071

 

 

10.7

%

Derivative (losses) gains, net (4)

 

(152

)

 

(1.1

)%

 

 

(151

)

 

(0.8

)%

 

 

14

 

 

0.1

%

Other noninterest income (5)

 

2,011

 

 

13.9

%

 

 

1,673

 

 

8.5

%

 

 

2,734

 

 

14.1

%

Total noninterest income

$

14,488

 

 

100.0

%

 

$

19,613

 

 

100.0

%

 

$

19,343

 

 

100.0

%

__________________

(1) Changes in cash surrender value of BOLI are not taxable. In the three months ended, December 31, 2023, includes a charge of $0.7 million in connection with the enhancement/restructuring of BOLI in the fourth quarter of 2023.

(2) Includes net loss of $0.1 million and $9.5 million in the three months ended December 31, 2023 and March 31, 2023, respectively, in connection with the sale of debt securities available for sale. There were no sales of debt securities available for sale in the three months ended March 31, 2024. In addition, includes unrealized losses of $0.1 million and unrealized gains of $0.1 million in the three months ended March 31, 2024 and December 31, 2023, 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. In addition, 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 incurs expenses related to derivative transactions with customers which are included as part of noninterest expenses under loan-level derivative expense. See Exhibit 5 for more details.

(4) Net unrealized gains and losses related to uncovered interest rate caps with clients.

(5) Includes mortgage banking income of $1.1 million, $0.6 million and $1.8 million in the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively, primarily consisting of net gains on sale, valuation and derivative transactions associated with mortgage loans held for sale activity, and other smaller sources of income related to the operations of 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

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

(in thousands, except percentages)

Amount

%

 

Amount

%

 

Amount

%

 

 

Salaries and employee benefits (1)

$

32,958

 

49.5

%

 

$

33,049

 

30.1

%

 

$

34,876

53.9

%

Occupancy and equipment

 

6,476

 

9.7

%

 

 

7,015

 

6.4

%

 

 

6,798

10.5

%

Professional and other services fees (2)

 

10,963

 

16.5

%

 

 

14,201

 

12.9

%

 

 

7,628

11.8

%

Loan-level derivative expense (3)

 

4

 

—

%

 

 

182

 

0.2

%

 

 

1,600

2.5

%

Telecommunications and data processing (4)

 

3,533

 

5.3

%

 

 

3,838

 

3.5

%

 

 

3,064

4.7

%

Depreciation and amortization

 

1,477

 

2.2

%

 

 

1,480

 

1.3

%

 

 

1,292

2.0

%

FDIC assessments and insurance

 

3,008

 

4.5

%

 

 

2,535

 

2.3

%

 

 

2,737

4.2

%

Losses on loans held for sale carried at the lower cost or fair value (5)

 

—

 

—

%

 

 

37,495

 

34.2

%

 

 

—

—

%

Advertising expenses

 

3,078

 

4.6

%

 

 

3,169

 

2.9

%

 

 

2,586

4.0

%

Other real estate owned and repossessed assets (income) expense, net (6)(7)

 

(354

)

(0.5

)%

 

 

(205

)

(0.2

)%

 

 

—

—

%

Other operating expenses (8)

 

5,451

 

8.2

%

 

 

6,943

 

6.4

%

 

 

4,152

6.4

%

Total noninterest expense (9)

$

66,594

 

100.0

%

 

$

109,702

 

100.0

%

 

$

64,733

100.0

%

___

(1) Includes staff reduction costs of $1.1 million and $0.2 million in the three months ended December 31, 2023 and March 31, 2023, respectively, which consist of severance expenses primarily related to organizational rationalization.

(2) Includes additional non-routine expenses of $1.2 million and $2.6 million in the three months ended December 31, 2023 and March 31, 2023, respectively, related to the engagement of FIS. Additionally, the three months ended March 31, 2024 and December 31, 2023, include recurring service fees in connection with the engagement of FIS.

(3) Includes services fees in connection with our loan-level derivative income generation activities.

(4) In the three months ended December 31, 2023, includes $0.4 million of software expenses related to legacy applications running in parallel to new core banking applications.

(5) In the three months ended December 31, 2023, includes $35.5 million in total valuation allowance as a result of changes in their fair value, and $2.0 million in losses on the sale of these loans.

(6) Includes OREO rental income of $0.4 million and $0.4 million in the three months ended March 31, 2024 and December 31, 2023, respectively. We had no OREO rental income in the three months ended March 31, 2023.

(7) Beginning in the three months ended June 30, 2023, OREO and repossessed assets expense is presented separately in the Company’s consolidated statement of operations and comprehensive (loss) income.

(8) In the three months ended December 31, 2023, includes goodwill and intangible assets impairments totaling $1.7 million related to two of our subsidiaries (Amerant Mortgage and Elant, a Cayman-based trust company). In addition, in the three months ended December 31, 2023, includes additional costs of $1.1 million in connection with the restructuring of the Company’s BOLI. In all of the periods shown, includes mortgage loan origination and servicing expenses, 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 and other small expenses.

(9) Includes $3.1 million, $3.5 million and $3.9 million in the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, 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)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Assets

 

 

(audited)

 

 

 

 

 

 

Cash and due from banks

$

41,231

 

 

$

47,234

 

 

$

48,145

 

 

$

45,184

 

 

$

41,489

 

Interest earning deposits with banks

 

577,843

 

 

 

242,709

 

 

 

202,946

 

 

 

365,673

 

 

 

411,747

 

Restricted cash

 

33,897

 

 

 

25,849

 

 

 

51,837

 

 

 

34,204

 

 

 

32,541

 

Other short-term investments

 

6,700

 

 

 

6,080

 

 

 

6,024

 

 

 

—

 

 

 

—

 

Cash and cash equivalents

 

659,671

 

 

 

321,872

 

 

 

308,952

 

 

 

445,061

 

 

 

485,777

 

Securities

 

 

 

 

 

 

 

 

 

Debt securities available for sale, at fair value

 

1,298,073

 

 

 

1,217,502

 

 

 

1,033,797

 

 

 

1,027,676

 

 

 

1,045,883

 

Debt securities held to maturity, at amortized cost (1)

 

224,014

 

 

 

226,645

 

 

 

230,254

 

 

 

234,369

 

 

 

239,258

 

Trading securities

 

—

 

 

 

—

 

 

 

—

 

 

 

298

 

 

 

—

 

Equity securities with readily determinable fair value not held for trading

 

2,480

 

 

 

2,534

 

 

 

2,438

 

 

 

2,500

 

 

 

—

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

54,001

 

 

 

50,294

 

 

 

47,878

 

 

 

50,460

 

 

 

62,556

 

Securities

 

1,578,568

 

 

 

1,496,975

 

 

 

1,314,367

 

 

 

1,315,303

 

 

 

1,347,697

 

Loans held for sale, at lower of fair value or cost (2)

 

—

 

 

 

365,219

 

 

 

43,257

 

 

 

—

 

 

 

—

 

Mortgage loans held for sale, at fair value

 

48,908

 

 

 

26,200

 

 

 

25,952

 

 

 

49,942

 

 

 

65,289

 

Loans held for investment, gross

 

6,957,475

 

 

 

6,873,493

 

 

 

7,073,387

 

 

 

7,167,016

 

 

 

7,049,746

 

Less: Allowance for credit losses

 

96,050

 

 

 

95,504

 

 

 

98,773

 

 

 

105,956

 

 

 

84,361

 

Loans held for investment, net

 

6,861,425

 

 

 

6,777,989

 

 

 

6,974,614

 

 

 

7,061,060

 

 

 

6,965,385

 

Bank owned life insurance

 

237,314

 

 

 

234,972

 

 

 

232,736

 

 

 

231,253

 

 

 

229,824

 

Premises and equipment, net

 

44,877

 

 

 

43,603

 

 

 

43,004

 

 

 

43,714

 

 

 

42,380

 

Deferred tax assets, net

 

48,302

 

 

 

55,635

 

 

 

63,501

 

 

 

56,779

 

 

 

46,112

 

Operating lease right-of-use assets

 

117,171

 

 

 

118,484

 

 

 

116,763

 

 

 

116,161

 

 

 

119,503

 

Goodwill

 

19,193

 

 

 

19,193

 

 

 

20,525

 

 

 

20,525

 

 

 

20,525

 

Accrued interest receivable and other assets (3)

 

202,343

 

 

 

256,185

 

 

 

202,029

 

 

 

179,728

 

 

 

172,810

 

Total assets

$

9,817,772

 

 

$

9,716,327

 

 

$

9,345,700

 

 

$

9,519,526

 

 

$

9,495,302

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

Demand

 

 

 

 

 

 

 

 

 

Noninterest bearing

$

1,397,331

 

 

$

1,426,919

 

 

$

1,370,157

 

 

$

1,293,522

 

 

$

1,360,626

 

Interest bearing

 

2,619,115

 

 

 

2,560,629

 

 

 

2,416,797

 

 

 

2,773,120

 

 

 

2,489,565

 

Savings and money market

 

1,616,719

 

 

 

1,610,218

 

 

 

1,457,080

 

 

 

1,431,375

 

 

 

1,507,195

 

Time

 

2,245,078

 

 

 

2,297,097

 

 

 

2,302,878

 

 

 

2,081,554

 

 

 

1,929,340

 

Total deposits

 

7,878,243

 

 

 

7,894,863

 

 

 

7,546,912

 

 

 

7,579,571

 

 

 

7,286,726

 

Advances from the Federal Home Loan Bank

 

715,000

 

 

 

645,000

 

 

 

595,000

 

 

 

770,000

 

 

 

1,052,012

 

Senior notes

 

59,605

 

 

 

59,526

 

 

 

59,447

 

 

 

59,368

 

 

 

59,289

 

Subordinated notes

 

29,497

 

 

 

29,454

 

 

 

29,412

 

 

 

29,369

 

 

 

29,326

 

Junior subordinated debentures held by trust subsidiaries

 

64,178

 

 

 

64,178

 

 

 

64,178

 

 

 

64,178

 

 

 

64,178

 

Operating lease liabilities (4)

 

122,267

 

 

 

123,167

 

 

 

120,665

 

 

 

119,921

 

 

 

122,214

 

Accounts payable, accrued liabilities and other liabilities (5)

 

210,897

 

 

 

164,071

 

 

 

210,299

 

 

 

176,163

 

 

 

152,501

 

Total liabilities

 

9,079,687

 

 

 

8,980,259

 

 

 

8,625,913

 

 

 

8,798,570

 

 

 

8,766,246

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

Class A common stock

 

3,373

 

 

 

3,361

 

 

 

3,359

 

 

 

3,374

 

 

 

3,383

 

Additional paid in capital

 

192,237

 

 

 

192,701

 

 

 

194,103

 

 

 

195,275

 

 

 

194,782

 

Retained earnings

 

618,359

 

 

 

610,802

 

 

 

630,933

 

 

 

611,829

 

 

 

607,544

 

Accumulated other comprehensive loss

 

(75,884

)

 

 

(70,796

)

 

 

(105,634

)

 

 

(86,926

)

 

 

(74,319

)

Total stockholders' equity before noncontrolling interest

 

738,085

 

 

 

736,068

 

 

 

722,761

 

 

 

723,552

 

 

 

731,390

 

Noncontrolling interest

 

—

 

 

 

—

 

 

 

(2,974

)

 

 

(2,596

)

 

 

(2,334

)

Total stockholders' equity

 

738,085

 

 

 

736,068

 

 

 

719,787

 

 

 

720,956

 

 

 

729,056

 

Total liabilities and stockholders' equity

$

9,817,772

 

 

$

9,716,327

 

 

$

9,345,700

 

 

$

9,519,526

 

 

$

9,495,302

 

__________

(1) Estimated fair value of $198,909, $204,945, $195,165, $209,546 and $218,388 at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively.

(2) As of December 31, 2023 and September 30, 2023, includes a valuation allowance of $35.5 million and $5.6 million as a result of fair value adjustment.

(3) As of March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, includes derivative assets with a total fair value of $64.7 million, $59.9 million, $87.1 million, $75.8 million and $60.8 million, respectively. As of December 31, 2023, includes a receivable from insurance carrier for $62.5 million in connection with the restructuring of the Company’s BOLI in the fourth quarter of 2023.

(4) Consists of total long-term lease liabilities. Total short-term lease liabilities are included in other liabilities.

(5) As of March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, includes derivatives liabilities with a total fair value of $63.8 million, $59.4 million, $85.6 million, $74.5 million and $59.5 million, respectively.

Exhibit 7 - Loans

Loans by Type - Held For Investment

The loan portfolio held for investment consists of the following loan classes:

(in thousands)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Real estate loans

 

 

(audited)

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

Non-owner occupied

$

1,672,470

 

$

1,616,200

 

$

1,593,571

 

$

1,645,224

 

$

1,630,451

Multi-family residential

 

349,917

 

 

407,214

 

 

771,654

 

 

764,712

 

 

796,125

Land development and construction loans

 

333,198

 

 

300,378

 

 

301,938

 

 

314,010

 

 

303,268

 

 

2,355,585

 

 

2,323,792

 

 

2,667,163

 

 

2,723,946

 

 

2,729,844

Single-family residential

 

1,490,711

 

 

1,466,608

 

 

1,371,194

 

 

1,285,857

 

 

1,189,045

Owner occupied

 

1,193,909

 

 

1,175,331

 

 

1,129,921

 

 

1,063,240

 

 

1,069,491

 

 

5,040,205

 

 

4,965,731

 

 

5,168,278

 

 

5,073,043

 

 

4,988,380

Commercial loans (1)

 

1,550,140

 

 

1,503,187

 

 

1,452,759

 

 

1,577,209

 

 

1,497,649

Loans to financial institutions and acceptances

 

29,490

 

 

13,375

 

 

13,353

 

 

13,332

 

 

13,312

Consumer loans and overdrafts (2)

 

337,640

 

 

391,200

 

 

438,997

 

 

503,432

 

 

550,405

Total loans

$

6,957,475

 

$

6,873,493

 

$

7,073,387

 

$

7,167,016

 

$

7,049,746

 

 

 

 

 

 

 

 

 

 

__________________

(1) As of March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, includes approximately $57.4 million, $56.5 milliion, $49.3 million, $47.7 million and $46.7 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 March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023 includes $163.3 million, $210.9 million, $254.7 million, $312.3 million and $372.2 million, respectively, in consumer loans purchased under indirect lending programs.

Loans by Type - Held For Sale

The loan portfolio held for sale consists of the following loan classes:

(in thousands)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Loans held for sale at the lower of fair value or cost

 

 

(audited)

 

 

 

 

 

 

Real estate loans

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

Non-owner occupied

$

—

 

$

—

 

$

43,256

 

$

—

 

$

—

Multi-family residential

 

—

 

 

309,612

 

 

—

 

 

—

 

 

—

Land development and construction loans

 

—

 

 

55,607

 

 

—

 

 

—

 

 

—

Total loans held for sale at the lower of fair value or cost (1)

 

—

 

 

365,219

 

 

43,256

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

Mortgage loans held for sale at fair value

 

 

 

 

 

 

 

 

 

Land development and construction loans (2)

 

26,058

 

 

12,778

 

 

6,931

 

 

3,726

 

 

15,527

Single-family residential (3)

 

22,850

 

 

13,422

 

 

19,022

 

 

46,216

 

 

49,762

Total mortgage loans held for sale at fair value (4)

 

48,908

 

 

26,200

 

 

25,953

 

 

49,942

 

 

65,289

Total loans held for sale (5)

$

48,908

 

$

391,419

 

$

69,209

 

$

49,942

 

$

65,289

__________________

(1) In the fourth quarter of 2023, the Company transferred an aggregate of $401 million in Houston-based CRE loans held for investment to the loans held for sale category, and recognized a valuation allowance of $35.5 million as a result of the fair value adjustment of these loans. The Company subsequently sold these loans in the first quarter of 2024 and there was no material impact to the Company’s results of operations as a result of this transaction. In the third quarter of 2023, the Company transferred a New York-based CRE loan held for investment to the loans held for sale category, and recognized a valuation allowance of $5.6 million as a result of the fair value adjustment of this loan. In the fourth quarter of 2023, the Company sold this loan and there was no material impact to the Company’s results of operations as a result of this transaction.

(2) 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.

(3) In the fourth, third and second quarters of 2023, the Company transferred approximately $17 million, $17 million and $28 million, respectively, in single-family residential loans held for sale to the loans held for investment category. In the first quarter of 2024, there were no significant transfers of single-family residential loans from the loans held for sale to the loans held for investment category.

(4) Loans held for sale in connection with Amerant Mortgage’s ongoing business.

(5) 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)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Non-Accrual Loans

 

 

(audited)

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

Commercial real estate (CRE)

 

 

 

 

 

 

 

 

 

Non-owner occupied

$

—

 

$

—

 

$

—

 

$

1,696

 

$

—

Multi-family residential

 

—

 

 

8

 

 

23,344

 

 

24,306

 

 

—

 

 

—

 

 

8

 

 

23,344

 

 

26,002

 

 

—

Single-family residential

 

4,400

 

 

2,459

 

 

2,533

 

 

1,681

 

 

1,367

Owner occupied

 

1,958

 

 

3,822

 

 

2,100

 

 

6,890

 

 

7,118

 

 

6,358

 

 

6,289

 

 

27,977

 

 

34,573

 

 

8,485

Commercial loans

 

21,833

 

 

21,949

 

 

4,713

 

 

12,241

 

 

13,643

Consumer loans and overdrafts

 

32

 

 

38

 

 

1

 

 

1

 

 

1

Total Non-Accrual Loans (1)

$

28,223

 

$

28,276

 

$

32,691

 

$

46,815

 

$

22,129

 

 

 

 

 

 

 

 

 

 

Past Due Accruing Loans(2)

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

Commercial real estate (CRE)

 

 

 

 

 

 

 

 

 

Single-family residential

 

1,149

 

 

5,218

 

 

—

 

 

302

 

 

—

Commercial

 

918

 

 

857

 

 

504

 

 

—

 

 

—

Consumer loans and overdrafts

 

9

 

 

49

 

 

—

 

 

78

 

 

53

Total Past Due Accruing Loans

$

2,076

 

$

6,124

 

$

504

 

$

380

 

$

53

Total Non-Performing Loans

 

30,299

 

 

34,400

 

 

33,195

 

 

47,195

 

 

22,182

Other Real Estate Owned

 

20,181

 

 

20,181

 

 

20,181

 

 

20,181

 

 

26,534

Total Non-Performing Assets

$

50,480

 

$

54,581

 

$

53,376

 

$

67,376

 

$

48,716

__________________

(1) See 2023 Form 10-K for more information about the activity of non-accrual loans in 2023.

(2) 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.

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

 

 

 

 

 

 

 

 

(in thousands)

Special Mention

Substandard

Doubtful

Total (1)

 

Special Mention

Substandard

Doubtful

Total (1)

 

Special Mention

Substandard

Doubtful

Total (1)

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate (CRE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

$

—

$

—

$

—

$

—

 

$

—

$

—

$

—

$

—

 

$

8,335

$

—

$

—

$

8,335

Multi-family residential

 

—

 

6

 

—

 

6

 

 

—

 

8

 

—

 

8

 

 

24,348

 

—

 

—

 

24,348

 

 

—

 

6

 

—

 

6

 

 

—

 

8

 

—

 

8

 

 

32,683

 

—

 

—

 

32,683

Single-family residential

 

—

 

3,715

 

—

 

3,715

 

 

—

 

2,800

 

—

 

2,800

 

 

—

 

1,514

 

—

 

1,514

Owner occupied

 

40,666

 

2,023

 

—

 

42,689

 

 

15,723

 

3,890

 

—

 

19,613

 

 

—

 

7,202

 

—

 

7,202

 

 

40,666

 

5,744

 

—

 

46,410

 

 

15,723

 

6,698

 

—

 

22,421

 

 

32,683

 

8,716

 

—

 

41,399

Commercial loans

 

63,172

 

22,800

 

—

 

85,972

 

 

30,261

 

22,971

 

—

 

53,232

 

 

3,240

 

14,891

 

3

 

18,134

Consumer loans and overdrafts

 

—

 

36

 

—

 

36

 

 

—

 

41

 

—

 

41

 

 

—

 

1

 

—

 

1

Totals

$

103,838

$

28,580

$

—

$

132,418

 

$

45,984

$

29,710

$

—

$

75,694

 

$

35,923

$

23,608

$

3

$

59,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

__________

(1) There were no loans categorized as “loss” as of the dates presented.

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)

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

 

 

(audited)

 

 

 

 

 

 

Domestic

$

5,288,702

 

$

5,430,059

 

$

5,067,937

 

$

5,113,604

 

$

4,891,873

Foreign:

 

 

 

 

 

 

 

 

 

Venezuela

 

1,988,470

 

 

1,870,979

 

 

1,892,453

 

 

1,912,994

 

 

1,897,199

Others

 

601,071

 

 

593,825

 

 

586,522

 

 

552,973

 

 

497,654

Total foreign

 

2,589,541

 

 

2,464,804

 

 

2,478,975

 

 

2,465,967

 

 

2,394,853

Total deposits

$

7,878,243

 

$

7,894,863

 

$

7,546,912

 

$

7,579,571

 

$

7,286,726

 

Investors

Laura Rossi

InvestorRelations@amerantbank.com

(305) 460-8728

Media

Alexis Dominguez

MediaRelations@amerantbank.com

(305) 441-5541

Source: Amerant Bancorp Inc.

FAQ

What was Amerant Bancorp Inc.'s net income in Q1 2024?

Amerant Bancorp Inc. reported a net income of $10.6 million in the first quarter of 2024.

What is the cash dividend declared by Amerant Bancorp Inc.?

Amerant Bancorp Inc. declared a cash dividend of $0.09 per share of common stock.

How did Amerant Bancorp Inc.'s total assets change in Q1 2024?

Total assets for Amerant Bancorp Inc. increased to $9.8 billion in the first quarter of 2024.

What was the percentage change in cash and cash equivalents for Amerant Bancorp Inc. in Q1 2024?

Cash and cash equivalents for Amerant Bancorp Inc. rose by 104.9% in the first quarter of 2024.

What was the efficiency ratio for Amerant Bancorp Inc. in Q1 2024?

The efficiency ratio for Amerant Bancorp Inc. improved to 72.0% in the first quarter of 2024.

What were the returns on average assets and equity for Amerant Bancorp Inc. in Q1 2024?

Amerant Bancorp Inc. had a positive return on average assets (ROA) of 0.44% and return on average equity (ROE) of 5.69% in the first quarter of 2024.

Stock AMTB logo
Amerant Bancorp Inc.

NYSE:AMTB

AMTB Rankings

#2536 Ranked by Market Cap
#1565 Ranked by Dividends

AMTB Latest News

Nov 8, 2024
MidFirst Bank Completes Acquisition of Amerant Bank Locations in Houston
Nov 8, 2024
Amerant Bancorp Inc. Completes the Sale of Texas Operations to MidFirst Bank
Oct 23, 2024
Amerant Reports Third Quarter 2024 Results
Oct 23, 2024
Amerant Bancorp Inc. Declares Dividend
Oct 3, 2024
AMERANT BANK EARNS SPOT ON NEWSWEEK'S 2024 LIST OF AMERICA'S MOST LOVED WORKPLACES FOR THE THIRD CONSECUTIVE YEAR

AMTB Stock Data

1.01B
42.11M
14.31%
45.67%
1.99%
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