Amerant Reports Fourth Quarter 2022 and Full-Year 2022 Results

Rhea-AI Summary

Amerant Bancorp reported a net income of $18.8 million in Q4 2022, representing $0.55 per diluted share, despite a provision for credit losses of $20.9 million. The full-year net income reached $63.3 million or $1.85 per share. Total assets climbed to $9.1 billion, up 4.44% quarter-over-quarter, and total deposits increased 6.92% to $7.04 billion. The adoption of the CECL accounting standard impacted the allowance for credit losses, raising it to $83.5 million. The board declared a cash dividend of $0.09 per share, payable on February 28, 2023. An earnings call is scheduled for January 20, 2023.

Positive

• Net income rose to $18.8 million in Q4 2022.
• Total assets increased to $9.1 billion, a 4.44% quarter-over-quarter growth.
• Total gross loans increased by $416.3 million, or 6.40%, compared to Q3 2022.
• Total deposits grew by $456.1 million, or 6.92%, compared to Q3 2022.
• Core pre-provision net revenue increased by 24.8% from Q3 2022.

Negative

• Provision for credit losses was $20.9 million, significantly higher compared to $3.0 million in Q3 2022.
• Non-performing loans increased by 100.6% compared to Q3 2022.
• Non-interest income decreased by 68.48% compared to Q4 2021.

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

CORAL GABLES, Fla., Jan. 19, 2023 (GLOBE NEWSWIRE) -- Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $18.8 million in the fourth quarter of 2022 , or $0.55 per diluted share. Results in the fourth quarter reflect a provision for credit losses of $20.9 million, including the retroactive effect of the Current Expected Credit Loss (“CECL”) accounting standard for all previous quarterly periods in the year ended December 31, 2022 for an amount of approximately $11.1 million¹. Net income attributable to the Company was $63.3 million for the full-year 2022, or $1.85 per diluted share.

Selected Financial Highlights:

• Total assets were $9.1 billion, up $387.8 million, or 4.44%, compared to $8.7 billion as of 3Q22 and up $1.5 billion, or 19.5%, compared to $7.6 billion as of 4Q21.
  
  
• Total gross loans were $6.92 billion, an increase of $416.3 million, or 6.40%, compared to $6.50 billion in 3Q22 and an increase of $1.35 billion, or 24.3%, compared to $5.57 billion in 4Q21.
  
  
• Total deposits were $7.04 billion, up $456.1 million, or 6.92%, compared to $6.59 billion in 3Q22 and up $1.41 billion, or 25.1%, compared to $5.63 billion in 4Q21.
  

Amerant Chairman and CEO Jerry Plush stated “We are pleased to again report strong asset, deposit and revenue growth this quarter. Our team delivered, building on the upward momentum we have shown throughout 2022.”

Adoption of the CECL Accounting Standard

In the fourth quarter of 2022, the Company adopted the CECL accounting standard for estimating allowance for credit losses. The adoption of CECL as of December 31, 2022, resulted in an increase to the allowance for credit losses of $18.7 million, with a corresponding after tax cumulative effect adjustment to retained earnings of $13.9 million as of January 1, 2022, as required by the standard. In addition, in the fourth quarter of 2022, the Company recorded a provision for credit losses totaling $20.9 million, which includes the retroactive effect of CECL adoption for all previous quarterly periods in the year ended December 31, 2022 for an amount of approximately $11.1 million¹, including loan growth and changes to macro-economic conditions during the year 2022. Quarterly amounts for the first, second and third quarters of 2022 do not reflect the adoption of CECL. The Company will provide an update to its interim consolidated financial information for each of the quarters in 2022 in its Annual Report on Form 10-K for the year ended December 31, 2022, reflecting the impacts of the adoption of CECL on each interim period of 2022.

Under the CECL accounting standard, the model for estimating credit losses on financial assets, including loans held for investment, changes from an incurred loss model to an expected loss model. The allowance for credit losses under the expected loss model is an estimate of life-of-loan losses for the Company’s loans held for investment.

Financial Highlights Continued:

• Average yield on loans was 5.85%, up compared to 5.06% and 4.10% in 3Q22 and 4Q21, respectively. Average yield on loans for the full-year 2022 was 4.92%, also up compared to 3.92% for the full-year 2021.
  
  
• Non-performing loans were $37.6 million, an increase of $18.9 million, or 100.6%, compared to $18.7 million as of 3Q22 and a decrease of $12.2 million, or 24.5%, compared to $49.8 million as of 4Q21. The increase resulted from a single commercial loan that is expected to become real estate owned without additional charges in 1Q23.
  
  
• The allowance for credit losses ("ACL") was $83.5 million, an increase of $29.8 million, or 55.5%, compared to $53.7 million as of 3Q22 and an increase of $13.6 million, or 19.5%, compared to $69.9 million in 4Q21. The increase to the ACL was primarily driven by the adoption of CECL as of December 31, 2022. Quarterly amounts for third quarter of 2022 do not reflect the adoption of CECL.
  
  
• Core deposits were $5.32 billion, up $114.3 million, or 2.2%, compared to $5.20 billion as of 3Q22 and up $1.0 billion, or 23.8%, compared to $4.29 billion as of 4Q21.
  
  
• Average cost of total deposits was 1.38%, an increase compared to 0.83% in 3Q22 and 0.41% in 4Q21. Average cost of total deposits for the full-year 2022 was 0.80%, also an increase compared to 0.49% for the full-year 2021.
  
  
• Loan to deposit ratio was 98.23% compared to 98.71% and 98.88% in 3Q22 and 4Q21, respectively.
  
  
• Assets Under Management and custody (“AUM”) totaled $2.00 billion as of 4Q22, an increase of $0.2 billion, or 10.2%, compared to $1.81 billion as of 3Q22 and a decrease of $0.2 billion, or 10.1%, compared to $2.22 billion in 4Q21.
  
  
• Pre-provision net revenue (“PPNR”)² was $44.5 million in 4Q22, an increase of $14.7 million, or 49.3%, compared to $29.8 million in 3Q22, and a decrease of $34.7 million, or 43.8%, compared to $79.1 million in 4Q21. PPNR² was $93.9 million for the full-year 2022, a decrease of $36.3 million, or 27.9%, compared to $130.1 million for the full-year 2021. Core Pre-Provision Net Revenue (“Core PPNR”)² was $37.8 million, an increase of $7.5 million, or 24.8%, from $30.3 million in 3Q22 and an increase of $18.9 million, or 100.1%, from $18.9 million in 4Q21. Core PPNR² was $105.5 million for the full-year 2022, an increase of $35.6 million, or 50.9%, compared to $69.9 million for the full-year 2021.
  
  
• Net Interest Margin (“NIM”) was 3.96%, up compared to 3.61% and 3.17% in 3Q22 and 4Q21, respectively. NIM was 3.53% for the full-year 2022, an increase compared to 2.90% for the full-year 2021.
  
  
• Net Interest Income (“NII”) was $82.2 million, up $12.3 million, or 17.6%, compared to $69.9 million in 3Q22 and up $26.4 million, or 47.3%, compared to $55.8 million in 4Q21. NII was $266.7 million for the full-year 2022, up $61.5 million, or 29.99%, compared to $205.1 million for the full-year 2021.
  
  
• Provision for credit losses was $20.9 million, up compared to $3.0 million in 3Q22, and a release from the provision of $6.5 million in 4Q21. Provision for credit losses was $13.9 million for the full-year 2022, compared to a release of $16.5 million in the full-year 2021. The increase in the provision for credit losses in 4Q22 includes the retroactive effect of CECL adoption for all previous quarterly periods in the year ended December 31, 2022 for an amount of approximately $11.1 million¹, including loan growth and changes to macro-economic conditions during the year 2022. The Company also recorded $9.8 million in provision for credit losses in 4Q22, of which a $2.2 million was for a specific reserve on a commercial loan, and $5.5 million related to consumer loans and a change in the consumer credit charge-off policy.
  
  
• Non-interest income was $24.4 million, an increase of $8.4 million, or 52.7%, compared to $16.0 million in 3Q22 and a decrease of $52.9 million, or 68.48%, compared to $77.3 million in 4Q21. Non-interest income was $67.3 million for the full-year 2022, a decrease of $53.3 million, or 44.2%, compared to $120.6 million for the full-year 2021.
  
  
• Non-interest expense was $62.2 million, up $6.1 million, or 10.9%, compared to $56.1 million in 3Q22 and up $7.2 million, or 13.0%, compared to $55.1 million in 4Q21. Non-interest expense was $241.4 million for the full-year 2022, up $43.2 million or 21.78%, compared to $198.2 million for the full-year 2021.
  
  
• The efficiency ratio was 58.42%, down compared to 65.36% in 3Q22 and up compared to 41.40% in 4Q21. The efficiency ratio was 72.29% for the full-year 2022 compared to 60.85% for the full-year 2021.
  
  
• Return on average assets (“ROA”) was 0.83% compared to 1.00% and 3.45% in 3Q22 and 4Q21, respectively. ROA was 0.77% for the full-year 2022 compared to 1.50% for the full-year 2021.
  
  
• Return on average equity (“ROE”) was 10.33% compared to 11.28% and 32.04% in 3Q22 and 4Q21, respectively. ROE was 8.45% for the full-year 2022 compared to 14.19% for the full-year 2021.
  

On January 18, 2023, the Company’s Board of Directors declared a cash dividend of $0.09 per common share. The dividend is payable on February 28, 2023, to shareholders of record on February 13, 2023.

_{¹ The provision for credit losses in the fourth quarter under CECL, excluding the retroactive effect corresponding to the first, second and third quarters of 2022, is approximately $7.0 million dollars, which results in net income attributable to the Company of $22.0 million in the fourth quarter of 2022, or $0.65 per diluted share.}

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

Fourth Quarter and Full Year 2022 Earnings Conference Call

As previously announced, the Company will hold an earnings conference call on Friday, January 20, 2023 at 9:00 a.m. (Eastern Time) to discuss its fourth quarter and full-year 2022 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the Company’s website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link.

About Amerant Bancorp Inc. (NASDAQ: AMTB)

Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S. with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the largest community bank headquartered in Florida. The Bank operates 23 banking centers – 16 in South Florida and 7 in the Houston, Texas area, as well as an LPO in Tampa, Florida. For more information, visit investor.amerantbank.com.

FIS® and any associated brand names/logos are the trademarks of FIS and/or its affiliates.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “goals,” “outlooks,” “modeled,” “dedicated,” “create,” and other similar words and expressions of the future.

Forward-looking statements, including those relating to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2021, our quarterly reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022, and September 30, 2022 and in our other filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website www.sec.gov.

Interim Financial Information

Unaudited financial information as of and for interim periods, including the three and twelve month periods ended December 31, 2022 and the three month period ended December 31, 2021, may not reflect our results of operations for our fiscal year ended, or financial condition as of December 31, 2022, or any other period of time or date.

In the fourth quarter of 2022, the Company adopted the Current Expected Credit Loss (“CECL”) accounting standard for estimating allowance for credit losses. The adoption of CECL as of December 31, 2022, resulted in an increase to the allowance for credit losses of $18.7 million, with a corresponding after tax cumulative effect adjustment to retained earnings of $13.9 million as of January 1, 2022, as required by the standard. In addition, in the fourth quarter of 2022, the Company recorded a provision for credit losses totaling $20.9 million, which includes the retroactive effect of CECL adoption for all previous quarterly periods in the year ended December 31, 2022 for an amount of approximately $11.1 million, including loan growth and changes to macro-economic conditions during the year 2022. Quarterly amounts for the first, second and third quarters of 2022 do not reflect the adoption of CECL. The Company will provide an update to its interim consolidated financial information for each of the quarters in 2022 in its Annual Report on Form 10-K for the year ended December 31, 2022, reflecting the impacts of the adoption of CECL on each interim period of 2022.

Under the CECL accounting standard, the model for estimating credit losses on financial assets, including loans held for investment, changes from an incurred loss model to an expected loss model. The allowance for credit losses under the expected loss model is an estimate of life-of-loan losses for the Company’s loans held for investment.

Non-GAAP Financial Measures

The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with non-GAAP financial measures, such as “pre-provision net revenue (PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core noninterest income”, “core noninterest expenses”, “core net income”, “core earnings per share (basic and diluted)”, “core return on assets (Core ROA)”, “core return on equity (Core ROE)”, “core efficiency ratio”, and “tangible stockholders’ equity book value per common share”. This supplemental information is not required by, or is not presented in accordance with GAAP. The Company refers to these financial measures and ratios as “non-GAAP financial measures” and they should not be considered in isolation or as a substitute for the GAAP measures presented herein.

We use certain non-GAAP financial measures, including those mentioned above, both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our past performance and prospects for future performance, especially in light of the Company’s adoption of CECL as of December 31, 2022 and for the year then ended, as well as the additional costs we have incurred in connection with the Company’s restructuring activities that began in 2018 and continued in 2022, including the effect of non-core banking activities such as the sale of loans and securities, the valuation of securities, derivatives, loans held for sale and other real estate owned, the sale of our corporate headquarters in the fourth quarter of 2021, and other non-routine actions intended to improve customer service and operating performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

Exhibit 2 reconciles these non-GAAP financial measures to reported results.

Exhibit 1- Selected Financial Information

The following table sets forth selected financial information derived from our unaudited and audited consolidated financial statements.

(in thousands)	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Consolidated Balance Sheets													(audited)
Total assets	$	9,127,804		$	8,739,979		$	8,151,242		$	7,805,836		$	7,638,399
Total investments		1,366,680			1,352,782			1,422,479			1,324,969			1,341,241
Total gross loans (1)		6,919,632			6,503,359			5,847,384			5,721,177			5,567,540
Allowance for credit losses (2)		83,500			53,711			52,027			56,051			69,899
Total deposits		7,044,199			6,588,122			6,202,854			5,691,701			5,630,871
Core deposits (3)		5,315,944			5,201,681			4,948,445			4,443,414			4,293,031
Advances from the FHLB and other borrowings		906,486			981,005			830,524			980,047			809,577
Senior notes		59,210			59,131			59,052			58,973			58,894
Subordinated notes (4)		29,284			29,241			29,199			29,156			—
Junior subordinated debentures		64,178			64,178			64,178			64,178			64,178
Stockholders' equity (2)(5)(6)(7)		705,726			695,698			711,450			749,396			831,873
Assets under management and custody (8)		1,995,666			1,811,265			1,868,017			2,129,387			2,221,077

	Three Months Ended																				Years Ended December 31,
(in thousands, except percentages, share data and per share amounts)	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021					2022				2021
Consolidated Results of Operations																									(audited)
Net interest income	$	82,178			$	69,897			$	58,945			$	55,645			$	55,780			$	266,665			$	205,141
Provision for (reversal of) credit losses (2)		20,945				3,000				—				(10,000	)			(6,500	)			13,945				(16,500	)
Noninterest income		24,365				15,956				12,931				14,025				77,290				67,277				120,621
Noninterest expense		62,241				56,113				62,241				60,818				55,088				241,413				198,242
Net income attributable to Amerant Bancorp Inc. (9)		18,766				20,920				7,674				15,950				65,469				63,310				112,921
Effective income tax rate		20.32	%			21.93	%			21.10	%			21.10	%			23.88	%			21.15	%			23.41	%
Common Share Data
Stockholders' book value per common share	$	20.87			$	20.60			$	21.07			$	21.82			$	23.18			$	20.87			$	23.18
Tangible stockholders' equity (book value) per common share (10)	$	20.19			$	19.92			$	20.40			$	21.15			$	22.55			$	20.19			$	22.55
Basic earnings per common share	$	0.56			$	0.62			$	0.23			$	0.46			$	1.79			$	1.87			$	3.04
Diluted earnings per common share (11)	$	0.55			$	0.62			$	0.23			$	0.45			$	1.77			$	1.85			$	3.01
Basic weighted average shares outstanding		33,496,096				33,476,418				33,675,930				34,819,984				36,606,969				33,862,410				37,169,283
Diluted weighted average shares outstanding (11)		33,813,593				33,746,878				33,914,529				35,114,043				37,064,769				34,142,563				37,527,523
Cash dividend declared per common share (7)	$	0.09			$	0.09			$	0.09			$	0.09			$	0.06			$	0.36			$	0.06

	Three Months Ended															Years Ended December 31,
	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021			2022			2021
Other Financial and Operating Data (12)																			(audited)
Profitability Indicators (%)
Net interest income / Average total interest earning assets (NIM) (13)	3.96	%		3.61	%		3.28	%		3.18	%		3.17	%		3.53	%		2.90	%
Net income / Average total assets (ROA) (14)	0.83	%		1.00	%		0.39	%		0.84	%		3.45	%		0.77	%		1.50	%
Net income / Average stockholders' equity (ROE) (15)	10.33	%		11.28	%		4.14	%		8.10	%		32.04	%		8.45	%		14.19	%
Noninterest income / Total revenue (16)	22.87	%		18.59	%		17.99	%		20.13	%		58.08	%		20.15	%		37.03	%
Capital Indicators (%)
Total capital ratio (17)	12.39	%		12.49	%		13.21	%		13.80	%		14.56	%		12.39	%		14.56	%
Tier 1 capital ratio (18)	10.89	%		11.34	%		11.99	%		12.48	%		13.45	%		10.89	%		13.45	%
Tier 1 leverage ratio (19)	9.18	%		9.88	%		10.25	%		10.67	%		11.52	%		9.18	%		11.52	%
Common equity tier 1 capital ratio (CET1) (20)	10.10	%		10.50	%		11.08	%		11.55	%		12.50	%		10.10	%		12.50	%
Tangible common equity ratio (21)	7.50	%		7.72	%		8.47	%		9.34	%		10.63	%		7.50	%		10.63	%
Liquidity Ratios (%)
Loans to Deposits (22)	98.23	%		98.71	%		94.27	%		100.52	%		98.88	%		98.23	%		98.88	%
Asset Quality Indicators (%)
Non-performing assets / Total assets (23)	0.41	%		0.29	%		0.39	%		0.73	%		0.78	%		0.41	%		0.78	%
Non-performing loans / Total loans (1) (24)	0.54	%		0.29	%		0.43	%		0.82	%		0.89	%		0.54	%		0.89	%
Allowance for credit losses / Total non-performing loans (2)(24)	222.08	%		287.56	%		206.84	%		119.34	%		140.41	%		222.08	%		140.41	%
Allowance for loan credit losses / Total loans held for investment (1)(2)	1.22	%		0.83	%		0.91	%		0.99	%		1.29	%		1.22	%		1.29	%
Net charge-offs / Average total loans held for investment (25)	0.59	%		0.09	%		0.29	%		0.29	%		0.52	%		0.32	%		0.44	%
Efficiency Indicators (% except FTE)
Noninterest expense / Average total assets	2.75	%		2.67	%		3.18	%		3.20	%		2.90	%		2.95	%		2.63	%
Salaries and employee benefits / Average total assets	1.45	%		1.43	%		1.54	%		1.60	%		1.65	%		1.51	%		1.56	%
Other operating expenses/ Average total assets (26)	1.30	%		1.24	%		1.64	%		1.60	%		1.25	%		1.44	%		1.07	%
Efficiency ratio (27)	58.42	%		65.36	%		86.59	%		87.29	%		41.40	%		72.29	%		60.85	%
Full-Time-Equivalent Employees (FTEs) (28)	692			681			680			677			763			692			763

	Three Months Ended																				Years Ended December 31,
(in thousands, except percentages and per share amounts)	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021					2022				2021
Core Selected Consolidated Results of Operations and Other Data (10)																									(audited)
Pre-provision net revenue (PPNR)	$	44,457			$	29,784			$	9,707			$	9,928			$	79,141			$	93,876			$	130,130
Core pre-provision net revenue (Core PPNR)	$	37,838			$	30,325			$	19,447			$	17,869			$	18,911			$	105,479			$	69,907
Core net income	$	13,610			$	21,275			$	15,358			$	22,216			$	19,339			$	72,459			$	66,796
Core basic earnings per common share		0.41				0.64				0.46				0.64				0.53				2.14				1.80
Core earnings per diluted common share (11)		0.40				0.63				0.45				0.63				0.52				2.12				1.78
Core net income / Average total assets (Core ROA) (14)		0.60	%			1.01	%			0.78	%			1.17	%			1.02	%			0.88	%			0.89	%
Core net income / Average stockholders' equity (Core ROE) (15)		7.49	%			11.47	%			8.28	%			11.28	%			9.46	%			9.67	%			8.39	%
Core efficiency ratio (29)		61.34	%			64.14	%			73.68	%			76.36	%			74.98	%			68.11	%			73.96	%

__________________
(1)   Total gross loans include loans held for investment net of unamortized deferred loan origination fees and costs. In addition, at June 30, 2022, March 31, 2022 and December 31, 2021, total loans include $66.4 million, $68.6 million and $143.2 million, respectively, in NYC real estate loans held for sale carried at the lower of cost or estimated fair value. In the third quarter of 2022, the Company transferred the NYC real estate loans held for sale to the loans held for investment category. Also, in the first quarter of 2022 and the fourth quarter of 2021, the Company sold approximately $57.3 million and $49.4 million, respectively, in loans held for sale carried at the lower of cost or estimated fair value related to the New York portfolio. In addition, as of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, total loans include $62.4 million, $57.6 million, $54.9 million, $17.1 million and $14.9 million, respectively, primarily in mortgage loans held for sale carried at fair value.
(2)   In the fourth quarter of 2022, the Company adopted the Current Expected Credit Loss (“CECL”) accounting standard using a modified retrospective approach. Therefore, quarterly amounts for the first, second and third quarters of 2022 do not reflect the adoption of CECL. In the fourth quarter of 2022, the Company recorded an increase to its allowance for credit losses (“ACL”) of $18.7 million as of January 1, 2022, with a corresponding after tax cumulative effect adjustment to retained earnings of $13.9 million. In addition, in the fourth quarter of 2022, the Company recorded the impact of CECL on its ACL in 2022 through a provision for credit losses of $11.1 million, including the retroactive effect of CECL for all previous quarterly periods in the year ended December 31, 2022. The Company has not elected to apply an available three-year transition provision to its regulatory capital computations as a result of its adoption of CECL in 2022.
(3)   Core deposits consist of total deposits excluding all time deposits.
(4)   On March 9, 2022, the Company completed a $30.0 million offering of subordinated notes with a 4.25% fixed-to-floating rate and due March 15, 2032 (the “Subordinated Notes”). The Subordinated Notes bear interest at a fixed rate of 4.25% per annum, from and including March 9, 2022, to but excluding March 15, 2027, with interest payable semi-annually in arrears. From and including March 15, 2027, to but excluding the stated maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to the then-current benchmark rate, which will initially be the three-month Secured Overnight Financing Rate (“SOFR”) plus 251 basis points, with interest during such period payable quarterly in arrears. If the three-month SOFR cannot be determined during the applicable floating rate period, a different index will be determined and used in accordance with the terms of the Subordinated Notes. Notes are presented net of direct issuance costs which are deferred and amortized over 10 years. The Subordinated Notes have been structured to qualify as Tier 2 capital of the Company for regulatory capital purposes, and rank equally in right of payment to all of our existing and future subordinated indebtedness.
(5)   In the first quarter of 2022, the Company repurchased an aggregate of 652,118 shares of Class A common stock at a weighted average price of $33.96 per share, under the Class A common stock repurchase program launched in 2021 (the “Class A Common Stock Repurchase Program”). The aggregate purchase price for these transactions was approximately $22.1 million, including transaction costs. On January 31, 2022, the Company announced the completion of the Class A Common Stock repurchase program. In addition, in the first quarter of 2022, the Company announced the launch of a new repurchase program pursuant to which the Company may purchase, from time to time, up to an aggregate amount of $50 million of its shares of Class A common stock (the “New Class A Common Stock Repurchase Program”). In the second and first quarters of 2022, the Company repurchased an aggregate of 611,525 shares and 991,362 shares, respectively, of Class A common stock at a weighted average price of $28.19 per share and $32.96 per share, respectively, under the New Class A Common Stock Repurchase Program. In the second and first quarters of 2022, the aggregate purchase price for these transactions was approximately $17.2 million and $32.7 million, respectively, including transaction costs. On May 19, 2022, the Company announced the completion of repurchased under the New Class A Common Stock Repurchase Program.
(6)   In the fourth quarter of 2021, the Company’s shareholders approved a clean-up merger, previously announced by the Company, pursuant to which a subsidiary of the Company merged with and into the Company (the “Merger”). Under the terms of the Merger, each outstanding share of Class B common stock was converted to 0.95 of a share of Class A common stock. In addition, any shareholder who owned fewer than 100 shares of Class A common stock upon completion of the Merger, received cash in lieu of Class A common stock. There were no authorized or outstanding Class B common stock at December 31, 2021. Furthermore, in connection with the Merger, the Company’s Board of Directors authorized the Class A Common Stock Repurchase Program which provided for the potential to repurchase up to $50 million of shares of Class A common stock. In the fourth quarter of 2021, the Company repurchased an aggregate of 1,175,119 shares of Class A common stock for an aggregate purchase price of $36.3 million, including $27.9 million repurchased under the Class A Common Stock Repurchase Program and $8.5 million shares cashed out in accordance with the terms of the Merger. The total weighted average market price of these transactions was $30.92 per share.
(7)   In the fourth, third, second and first quarters of 2022, and in the fourth quarter of 2021, the Company’s Board of Directors declared cash dividends of $0.09, $0.09, $0.09, $0.09 and $0.06 per share of the Company’s common stock, respectively. The dividend declared in the fourth quarter of 2022 was paid on November 30, 2022 to shareholders record at the close of business on November 15, 2022. The dividend declared in the third quarter of 2022 was paid on August 31, 2022 to shareholders of record at the close of business on August 17, 2022.The dividend declared in the second quarter of 2022 was paid on May 31, 2022 to shareholders of record at the close of business on May 13, 2022.The dividend declared in the first quarter of 2022 was paid on February 28, 2022 to shareholders of record at the close of business on February 11, 2022. The dividend declared in the fourth quarter of 2021 was paid on or before January 15, 2022 to holders of record as of December 22, 2021. The aggregate amount paid in connection with these dividends in the fourth, third, second and first quarters of 2022, and in the fourth quarter of 2021 was $3.0 million, $3.0 million, $3.0 million, $3.2 million and $2.2 million, respectively
(8)   Assets held for clients in an agency or fiduciary capacity which are not assets of the Company and therefore are not included in the consolidated financial statements.
(9)   In the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, net income exclude losses of $0.2 million, $44 thousand, $0.1 million, $1.1 million and $1.2 million, respectively, attributable to the minority interest of Amerant Mortgage LLC. Beginning March 31, 2022, the minority interest share changed from 49% to 42.6%. This change had no impact to the Company’s financial condition or results of operations as of and for the first quarter ended March 31, 2022. In addition, in the second quarter of 2022, the minority interest share changed from 42.6% to 20%. In connection with the change in minority interest share in the second quarter of 2022, the Company reduced its additional paid-in capital for a total of $1.9 million with a corresponding increase to the equity attributable to noncontrolling interests.
(10)   This presentation contains adjusted financial information determined by methods other than GAAP. This adjusted financial information is reconciled to GAAP in Exhibit 2 - Non-GAAP Financial Measures Reconciliation.
(11)   In all the periods shown, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. Potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in all the periods shown, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.
(12)   Operating data for the periods presented have been annualized.
(13)   NIM is defined as NII divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.
(14)   Calculated based upon the average daily balance of total assets.
(15)   Calculated based upon the average daily balance of stockholders’ equity.
(16)   Total revenue is the result of net interest income before provision for credit losses plus noninterest income.
(17)   Total stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.
(18)   Tier 1 capital divided by total risk-weighted assets. Tier 1 capital is composed of Common Equity Tier 1 (CET1) capital plus outstanding qualifying trust preferred securities of $62.3 million at each of all the dates presented.
(19)   Tier 1 capital divided by quarter to date average assets.
(20)   CET1 capital divided by total risk-weighted assets.
(21)   Tangible common equity is calculated as the ratio of common equity less goodwill and other intangibles divided by total assets less goodwill and other intangible assets. Other intangible assets consist of, among other things, mortgage servicing rights and are included in other assets in the Company’s consolidated balance sheets.
(22)   Calculated as the ratio of total loans gross divided by total deposits.
(23)   Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans, restructured loans that are considered “troubled debt restructurings” or “TDRs”, and other real estate owned (“OREO”) properties acquired through or in lieu of foreclosure.
(24)   Non-performing loans include all accruing loans past due by 90 days or more, all nonaccrual loans and restructured loans that are considered TDRs.
(25)   Calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for credit losses. During the fourth, third, second and first quarters of 2022, and the fourth quarter of 2021, there were net charge offs of $9.8 million, $1.3 million, $4.0 million, $3.8 million, and $7.0 million, respectively. During the fourth quarter of 2022, the Company charged-off $3.9 million related to a CRE loan, $5.5 million related to multiple consumer loans and $1.1 million related to multiple commercial loans. During the third quarter of 2022, the Company charged-off $1.7 million related to multiple consumer loans and $0.2 million in connection with two commercial loans. During the second quarter of 2022, the Company charged-off $3.6 million in connection with a loan relationship with a Miami-based U.S. coffee trader. During the first quarter of 2022, the Company charged-off $3.3 million in two commercial loans, including $2.5 million related to a nonaccrual loan paid off during the period. During the fourth quarter of 2021, the Company charged-off an aggregate of $4.2 million related to various commercial loans and $1.8 million related to one real estate loan.
(26)   Other operating expenses is the result of total noninterest expense less salary and employee benefits.
(27)   Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and NII.
(28)   As of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, includes 68, 67, 67, 79, and 72 FTEs for Amerant Mortgage LLC, respectively. In addition, effective January 1, 2022, there were 80 employees who are no longer working for the Company as a result of the new agreement with Fidelity National Information Services, Inc. (“FIS”).
(29)   Core efficiency ratio is the efficiency ratio less the effect of restructuring costs and other adjustments, described in Exhibit 2 - Non-GAAP Financial Measures Reconciliation.

Exhibit 2- Non-GAAP Financial Measures Reconciliation

The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related to tax deductible restructuring costs, provision for (reversal of) credit losses, provision for income tax expense (benefit), the effect of non-core banking activities such as the sale of loans and securities,the valuation of securities, derivatives, loans held for sale and other real estate owned, the sale and leaseback of our corporate headquarters in the fourth quarter of 2021, and other non-recurring actions intended to improve customer service and operating performance. The Company believes these adjusted numbers are useful to understand the Company’s performance absent these transactions and events.

	Three Months Ended,																Years Ended December 31,
(in thousands)	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021					2022		2021 (audited)
Net income attributable to Amerant Bancorp Inc. (1)	$	18,766		$	20,920		$	7,674		$	15,950		$	65,469			$	63,310		$	112,921
Plus: provision for (reversal of) credit losses (1)		20,945			3,000			—			(10,000	)		(6,500	)			13,945			(16,500	)
Plus: provision for income tax expense (2)		4,746			5,864			2,033			3,978			20,172				16,621			33,709
Pre-provision net revenue (PPNR)	$	44,457		$	29,784		$	9,707		$	9,928		$	79,141			$	93,876		$	130,130
Plus: non-routine noninterest expense items		2,447			1,954			7,995			6,574			1,895				18,970			7,057
(Less) Plus: non-routine noninterest income items		(9,066	)		(1,413	)		1,745			1,367			(62,125	)			(7,367	)		(67,280	)
Core pre-provision net revenue (Core PPNR)	$	37,838		$	30,325		$	19,447		$	17,869		$	18,911			$	105,479		$	69,907
Total noninterest income	$	24,365		$	15,956		$	12,931		$	14,025		$	77,290			$	67,277		$	120,621
Less: Non-routine noninterest income items:
Less: gain on sale of Headquarters building (2)		—			—			—			—			62,387				—			62,387
Derivative gains (losses), net		1,040			(95	)		855			(1,345	)		—				455			—
Securities (loss) gains, net		(3,364	)		1,508			(2,602	)		769			(117	)			(3,689	)		3,740
Gain (loss) on early extinguishment of FHLB advances, net		11,390			—			2			(714	)		—				10,678			(2,488	)
(Loss) gain on sale of loans		—			—			—			(77	)		(145	)			(77	)		3,641
Total non-routine noninterest income items	$	9,066		$	1,413		$	(1,745	)	$	(1,367	)	$	62,125			$	7,367		$	67,280
Core noninterest income	$	15,299		$	14,543		$	14,676		$	15,392		$	15,165			$	59,910		$	53,341
Total noninterest expenses	$	62,241		$	56,113		$	62,241		$	60,818		$	55,088			$	241,413		$	198,242
Less: non-routine noninterest expense items
Restructuring costs (3)
Staff reduction costs (4)		1,221			358			674			765			26				3,018			3,604
Contract termination costs (5)		—			289			2,802			4,012			—				7,103			—
Legal and Consulting fees (6)		1,226			1,073			80			1,246			1,277				3,625			1,689
Digital transformation expenses		—			—			—			45			50				45			412
Lease impairment charge (7)		—			—			1,565			14			—				1,579			810
Branch closure expenses (8)		—			—			—			33			542				33			542
Total restructuring costs	$	2,447		$	1,720		$	5,121		$	6,115		$	1,895			$	15,403		$	7,057
Other non-routine noninterest expense items:
Other real estate owned valuation expense (9)		—			234			3,174			—			—				3,408			—
Loans held for sale valuation (reversal) expense (10)		—			—			(300	)		459			—				159			—
Total non-routine noninterest expense items	$	2,447		$	1,954		$	7,995		$	6,574		$	1,895			$	18,970		$	7,057
Core noninterest expenses	$	59,794		$	54,159		$	54,246		$	54,244		$	53,193			$	222,443		$	191,185
(in thousands, except percentages and per share data)	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021					2022		2021 (audited)
Net income attributable to Amerant Bancorp Inc. (1)	$	18,766		$	20,920		$	7,674		$	15,950		$	65,469			$	63,310		$	112,921
Plus after-tax non-routine items in noninterest expense:
Non-routine items in noninterest expense before income tax effect		2,447			1,954			7,995			6,574			1,895				18,970			7,057
Income tax effect (11)		(460	)		(478	)		(1,687	)		(1,387	)		(478	)			(4,012	)		(1,652	)
Total after-tax non-routine items in noninterest expense		1,987			1,476			6,308			5,187			1,417				14,958			5,405
Plus (less): before-tax non-routine items in noninterest income:
Non-routine items in noninterest income before income tax effect		(9,066	)		(1,413	)		1,745			1,367			(62,125	)			(7,367	)		(67,280	)
Income tax effect (11)		1,923			292			(369	)		(288	)		14,578				1,558			15,750
Total after-tax non-routine items in noninterest income		(7,143	)		(1,121	)		1,376			1,079			(47,547	)			(5,809	)		(51,530	)
Core net income	$	13,610		$	21,275		$	15,358		$	22,216		$	19,339			$	72,459		$	66,796
Basic earnings per share	$	0.56		$	0.62		$	0.23		$	0.46		$	1.79			$	1.87		$	3.04
Plus: after tax impact of non-routine items in noninterest expense		0.06			0.04			0.19			0.15			0.04				0.44			0.15
(Less) Plus: after tax impact of non-routine items in noninterest income		(0.21	)		(0.02	)		0.04			0.03			(1.30	)			(0.17	)		(1.39	)
Total core basic earnings per common share	$	0.41		$	0.64		$	0.46		$	0.64		$	0.53			$	2.14		$	1.80
Diluted earnings per share (12)	$	0.55		$	0.62		$	0.23		$	0.45		$	1.77			$	1.85		$	3.01
Plus: after tax impact of non-routine items in noninterest expense		0.06			0.04			0.18			0.15			0.04				0.44			0.14
(Less) Plus: after tax impact of non-routine items in noninterest income		(0.21	)		(0.03	)		0.04			0.03			(1.29	)			(0.17	)		(1.37	)
Total core diluted earnings per common share	$	0.40		$	0.63		$	0.45		$	0.63		$	0.52			$	2.12		$	1.78
Net income / Average total assets (ROA)		0.83	%		1.00	%		0.39	%		0.84	%		3.45	%			0.77	%		1.50	%
Plus: after tax impact of non-routine items in noninterest expense		0.09	%		0.07	%		0.32	%		0.28	%		0.07	%			0.18	%		0.07	%
(Less) Plus: after tax impact of non-routine items in noninterest income	(0.32		)%	(0.06		)%		0.07	%		0.06	%	(2.50		)%		(0.07		)%	(0.68		)%
Core net income / Average total assets (Core ROA)		0.60	%		1.01	%		0.78	%		1.18	%		1.02	%			0.88	%		0.89	%
Net income / Average stockholders' equity (ROE)		10.33	%		11.28	%		4.14	%		8.10	%		32.04	%			8.45	%		14.19	%
Plus: after tax impact of non-routine items in noninterest expense		1.09	%		0.80	%		3.40	%		2.63	%		0.69	%			2.00	%		0.68	%
(Less) Plus: after tax impact of non-routine items in noninterest income	(3.93		)%	(0.61		)%		0.74	%		0.55	%	(23.27		)%		(0.78		)%	(6.48		)%
Core net income / Average stockholders' equity (Core ROE)		7.49	%		11.47	%		8.28	%		11.28	%		9.46	%			9.67	%		8.39	%
Efficiency ratio		58.42	%		65.36	%		86.59	%		87.29	%		41.40	%			72.29	%		60.85	%
Less: impact of non-routine items in noninterest expense	(2.30		)%	(2.28		)%	(11.12		)%	(9.43		)%	(1.43		)%		(5.68		)%	(2.16		)%
Plus (Less): impact of non-routine items in noninterest income		5.22	%		1.06	%	(1.79		)%	(1.50		)%		35.01	%			1.50	%		15.27	%
Core efficiency ratio		61.34	%		64.14	%		73.68	%		76.36	%		74.98	%			68.11	%		73.96	%
(in thousands, except percentages, share data and per share data)	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021					2022		2021 (audited)
Stockholders' equity	$	705,726		$	695,698		$	711,450		$	749,396		$	831,873			$	705,726		$	831,873
Less: goodwill and other intangibles (13)		(23,161	)		(22,814	)		(22,808	)		(22,795	)		(22,528	)			(23,161	)		(22,528	)
Tangible common stockholders' equity	$	682,565		$	672,884		$	688,642		$	726,601		$	809,345			$	682,565		$	809,345
Total assets		9,127,804			8,739,979			8,151,242			7,805,836			7,638,399				9,127,804			7,638,399
Less: goodwill and other intangibles (13)		(23,161	)		(22,814	)		(22,808	)		(22,795	)		(22,528	)			(23,161	)		(22,528	)
Tangible assets	$	9,104,643		$	8,717,165		$	8,128,434		$	7,783,041		$	7,615,871			$	9,104,643		$	7,615,871
Common shares outstanding		33,815,161			33,773,249			33,759,604			34,350,822			35,883,320				33,815,161			35,883,320
Tangible common equity ratio		7.50	%		7.72	%		8.47	%		9.34	%		10.63	%			7.50	%		10.63	%
Stockholders' book value per common share	$	20.87		$	20.60		$	21.07		$	21.82		$	23.18			$	20.87		$	23.18
Tangible stockholders' book value per common share	$	20.19		$	19.92		$	20.40		$	21.15		$	22.55			$	20.19		$	22.55

____________
(1)   Net income attributable to the Company results in $22.0 million in the fourth quarter of 2022, excluding the CECL retroactive effect corresponding to the first, second, and third quarters of 2022. The provision for credit losses attributable to the fourth quarter of 2022 is $16.9 million, excluding the CECL retroactive effect corresponding to the first, second and third quarters of 2022. In the fourth quarter of 2022, the Company adopted CECL and recorded the related impact on its ACL in 2022 through a provision for credit losses of $11.1 million.
(2)   The Company sold its Coral Gables headquarters for $135 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year term. The provision for income tax expense includes approximately $16.1 million related to this transaction in the three months ended December 31, 2021.
(3)   Expenses incurred for actions designed to implement the Company’s business strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation of new technology system applications, decommissioning of legacy technologies, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities.
(4)   In the fourth quarter of 2022, includes expenses primarily in connection with changes in certain positions within our business units. In the third quarter of 2022 and the fourth quarter of 2021, includes expenses primarily in connection with the elimination of certain support functions. In the second and first quarters of 2022, includes expenses primarily in connection with the restructuring of business lines and the outsourcing of certain human resources functions.
(5)   Contract termination and related costs associated with third party vendors resulting from the Company’s engagement of FIS.
(6)   Includes: (i) expenses in connection with the engagement of FIS of $1.1 million, $1.0 million, $0.8 million and $0.5 million in the three months ended December 31, 2022, September 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $2.9 million and $0.7 million in the years ended December 31, 2022 and 2021, respectively; (ii) an aggregate of $0.3 million in connection with information technology projects, and certain search and recruitment expenses in the three months ended March 31, 2022, and (iii) expenses in connection with the Merger and related transactions of $0.6 million and $0.8 million in the three months and the year ended December 31, 2021, respectively.
(7)   In the three months ended June 30, 2022 and the year ended December 31, 2022, includes $1.6 million of ROU asset impairment associated with the closure of a branch in Pembroke Pines, Florida in 2022. In the year ended December 31, 2021, includes $0.8 million of ROU asset impairment associated with the lease of the NY loan production office.
(8)   Expenses related to the Fort Lauderdale, Florida branch lease termination in 2021 and in Wellington, Florida in 2022.
(9)   Fair value adjustment related to one OREO property in New York.
(10)   Fair value adjustment related to the New York loan portfolio held for sale carried at the lower of cost or fair value.
(11)   In the years ended December 31, 2022 and 2021, and in the three months ended March 31, 2022, amounts were calculated based upon the effective tax rate for the periods of 21.15%, 23.41% and 21.10%, respectively. For all of the other periods shown, amounts represent the difference between the prior and current period year-to-date tax effect.
(12)   In the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. In all the periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect on per share earnings.
(13)   Other intangible assets consist of, among other things, mortgage servicing rights (“MSRs”) of $1.3 million, $1.0 million, $0.9 million, $0.9 million and $0.6 million at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and are included in other assets in the Company’s consolidated balance sheets.

Exhibit 3 - Average Balance Sheet, Interest and Yield/Rate Analysis

The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the periods presented. The average balances for loans include both performing and nonperforming balances. Interest income on loans includes the effects of discount accretion and the amortization of non-refundable loan origination fees, net of direct loan origination costs, accounted for as yield adjustments. Average balances represent the daily average balances for the periods presented.

	Three Months Ended
	December 31, 2022							September 30, 2022							December 31, 2021
(in thousands, except percentages)	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)	$	6,688,839	$	98,579	5.85	%		$	6,021,294	$	76,779	5.06	%		$	5,475,207	$	56,521	4.10	%
Debt securities available for sale (3)(4)		1,060,240		9,817	3.67	%			1,110,153		8,379	2.99	%			1,171,691		7,010	2.37	%
Debt securities held to maturity (5)		239,680		2,052	3.40	%			235,916		1,921	3.23	%			121,842		745	2.43	%
Debt securities held for trading		56		1	7.08	%			65		1	6.10	%			143		1	2.77	%
Equity securities with readily determinable fair value not held for trading		12,365		—	—	%			12,018		—	—	%			17,138		59	1.37	%
Federal Reserve Bank and FHLB stock		55,585		874	6.24	%			49,398		605	4.86	%			49,591		535	4.28	%
Deposits with banks		183,926		2,051	4.42	%			258,237		1,452	2.23	%			155,479		58	0.15	%
Total interest-earning assets		8,240,691		113,374	5.46	%			7,687,081		89,137	4.60	%			6,991,091		64,929	3.68	%
Total non-interest-earning assets (6)		731,685							639,118							537,549
Total assets	$	8,972,376						$	8,326,199						$	7,528,640

	Three Months Ended
	December 31, 2022								September 30, 2022								December 31, 2021
(in thousands, except percentages)	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	$	2,178,106		$	8,860	1.61	%		$	2,077,321		$	4,934	0.94	%		$	1,342,416		$	208	0.06	%
Money market		1,412,033			6,034	1.70	%			1,363,799			3,555	1.03	%			1,337,529			788	0.23	%
Savings		313,688			55	0.07	%			320,861			54	0.07	%			327,090			11	0.01	%
Total checking and saving accounts		3,903,827			14,949	1.52	%			3,761,981			8,543	0.90	%			3,007,035			1,007	0.13	%
Time deposits		1,538,239			8,623	2.22	%			1,247,084			4,717	1.50	%			1,380,337			4,777	1.37	%
Total deposits		5,442,066			23,572	1.72	%			5,009,065			13,260	1.05	%			4,387,372			5,784	0.52	%
Securities sold under agreements to repurchase		68			1	5.83	%			—			—	—	%			55			—	—	%
Advances from the FHLB and other borrowings (7)		994,185			5,293	2.11	%			866,639			3,977	1.82	%			863,137			1,805	0.83	%
Senior notes		59,172			941	6.31	%			59,092			941	6.32	%			58,855			942	6.35	%
Subordinated notes		29,263			361	4.89	%			29,220			362	4.92	%			—			—	—	%
Junior subordinated debentures		64,178			1,028	6.35	%			64,178			700	4.33	%			64,178			618	3.82	%
Total interest-bearing liabilities		6,588,932			31,196	1.88	%			6,028,194			19,240	1.27	%			5,373,597			9,149	0.68	%
Non-interest-bearing liabilities:
Non-interest bearing demand deposits		1,318,787								1,316,988								1,210,365
Accounts payable, accrued liabilities and other liabilities		343,923								245,425								133,927
Total non-interest-bearing liabilities		1,662,710								1,562,413								1,344,292
Total liabilities		8,251,642								7,590,607								6,717,889
Stockholders’ equity		720,734								735,592								810,751
Total liabilities and stockholders' equity	$	8,972,376							$	8,326,199							$	7,528,640
Excess of average interest-earning assets over average interest-bearing liabilities	$	1,651,759							$	1,658,887							$	1,617,494
Net interest income				$	82,178							$	69,897							$	55,780
Net interest rate spread						3.58	%							3.33	%							3.00	%
Net interest margin (8)						3.96	%							3.61	%							3.17	%
Cost of total deposits (9)						1.38	%							0.83	%							0.41	%
Ratio of average interest-earning assets to average interest-bearing liabilities		125.07	%							127.52	%							130.10	%
Average non-performing loans/ Average total loans		0.38	%							0.42	%							1.13	%

	Year Ended December 31,
		2022							2021 (audited)
(in thousands, except percentages)	Average Balances			Income/ Expense		Yield/ Rates			Average Balances			Income/ Expense		Yield/ Rates
Interest-earning assets:
Loan portfolio, net (1)(2)	$	5,963,190		$	293,210	4.92	%		$	5,514,110		$	216,097	3.92	%
Debt securities available for sale (3)(4)		1,112,590			33,187	2.98	%			1,194,505			26,953	2.26	%
Debt securities held to maturity (5)		192,397			5,657	2.94	%			97,501			2,036	2.09	%
Debt securities held for trading		64			4	6.25	%			165			5	3.03	%
Equity securities with readily determinable fair value not held for trading		9,560			—	—	%			22,332			284	1.27	%
Federal Reserve Bank and FHLB stock		51,496			2,565	4.98	%			53,106			2,222	4.18	%
Deposits with banks		231,402			4,153	1.79	%			201,950			247	0.12	%
Total interest-earning assets		7,560,699			338,776	4.48	%			7,083,669			247,844	3.50	%
Total non-interest-earning assets (6)		626,989								449,347
Total assets	$	8,187,688							$	7,533,016
Interest-bearing liabilities:
Checking and saving accounts -
Interest bearing DDA	$	1,872,100		$	15,118	0.81	%		$	1,309,699		$	591	0.05	%
Money market		1,323,563			11,673	0.88	%			1,311,278			3,483	0.27	%
Savings		319,631			135	0.04	%			324,618			50	0.02	%
Total checking and saving accounts		3,515,294			26,926	0.77	%			2,945,595			4,124	0.14	%
Time deposits		1,334,605			22,124	1.66	%			1,668,459			23,766	1.42	%
Total deposits		4,849,899			49,050	1.01	%			4,614,054			27,890	0.60	%
Securities sold under agreements to repurchase		32			1	3.13	%			123			1	0.81	%
Advances from the FHLB and other borrowings (7)		911,448			15,092	1.66	%			822,769			8,595	1.04	%
Senior notes		59,054			3,766	6.38	%			58,737			3,768	6.42	%
Subordinated notes		23,853			1,172	4.91	%			—			—	—	%
Junior subordinated debentures		64,178			3,030	4.72	%			64,178			2,449	3.82	%
Total interest-bearing liabilities		5,908,464			72,111	1.22	%			5,559,861			42,703	0.77	%
Non-interest-bearing liabilities:
Non-interest bearing demand deposits		1,286,570								1,046,766
Accounts payable, accrued liabilities and other liabilities		243,105								130,548
Total non-interest-bearing liabilities		1,529,675								1,177,314
Total liabilities		7,438,139								6,737,175
Stockholders’ equity		749,549								795,841
Total liabilities and stockholders' equity	$	8,187,688							$	7,533,016
Excess of average interest-earning assets over average interest-bearing liabilities	$	1,652,235							$	1,523,808
Net interest income				$	266,665							$	205,141
Net interest rate spread						3.26	%							2.73	%
Net interest margin (8)						3.53	%							2.90	%
Cost of total deposits (9)						0.80	%							0.49	%
Ratio of average interest-earning assets to average interest-bearing liabilities		127.96	%							127.41	%
Average non-performing loans/ Average total loans		0.51	%							1.61	%

_______________
(1)   Includes loans held for investment net of the allowance for credit losses and loans held for sale. The average balance of the allowance for loan losses was $54.9 million, $51.9 million, and $82.1 million in the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $57.5 million and $101.1 million in the years ended December 31, 2022 and 2021, respectively. The average balance of total loans held for sale was $78.3 million, $142.5 million and $206.8 million in the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $117.6 million and $72.7 million in the years ended December 31, 2022 and 2021, respectively.
(2)   Includes average non-performing loans of $25.5 million, $25.3 million and $63.0 million for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $30.7 million and $90.6 million for the years ended December 31, 2022 and 2021, respectively.
(3)   Includes the average balance of net unrealized gains and losses in the fair value of debt securities available for sale. The average balance includes average net unrealized losses of $120.1 million and $72.4 million in the three months ended December 31, 2022 and September 30, 2022, respectively, and average net unrealized gains of $20.2 million in the three months ended December 31, 2021. The average balance also includes average net unrealized losses of $62.3 million in the year ended December 31, 2022, and average unrealized net gains of $26.6 million in the year ended December 31, 2021.
(4)   Includes nontaxable securities with average balances of $19.8 million, $17.1 million and $17.7 million for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $18.4 million and $46.2 million in the year ended December 31, 2022 and 2021, respectively. The tax equivalent yield for these nontaxable securities was 4.26%, 2.69% and 1.79% for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and 3.00% and 1.76% for the years ended December 31, 2022 and 2021, respectively. In 2022 and 2021, the tax equivalent yields were calculated by assuming a 21% tax rate and dividing the actual yield by 0.79.
(5)   Includes nontaxable securities with average balances of $45.7 million, $41.9 million and $96.4 million for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $43.6 million and $50.2 million in the years ended December 31, 2022 and 2021, respectively. The tax equivalent yield for these nontaxable securities was 3.88%, 3.48% and 3.20% for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and 3.46% and 2.58% for the years ended December 31, 2022 and 2021, respectively. In 2022 and 2021, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.
(6)   Excludes the allowance for credit losses.
(7)   The terms of the FHLB advance agreements require the Bank to maintain certain investment securities or loans as collateral for these advances.
(8)   NIM is defined as net interest income divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.
(9)   Calculated based upon the average balance of total noninterest bearing and interest bearing deposits.

Exhibit 4 - Noninterest Income

        This table shows the amounts of each of the categories of noninterest income for the periods presented.

	Three Months Ended																		Year Ended December 31,
	December 31, 2022						September 30, 2022						December 31, 2021							2022						2021
																									(audited)
(in thousands, except percentages)	Amount			%			Amount			%			Amount			%			Amount			%			Amount			%
Deposits and service fees	$	4,766		19.6	%		$	4,629		29.0	%		$	4,521		5.9	%		$	18,592		27.6	%		$	17,214		14.3	%
Brokerage, advisory and fiduciary activities		4,054		16.6	%			4,619		29.0	%			4,987		6.5	%			17,708		26.3	%			18,616		15.4	%
Change in cash surrender value of bank owned life insurance (“BOLI”)(1)		1,378		5.7	%			1,352		8.5	%			1,366		1.8	%			5,406		8.0	%			5,459		4.5	%
Cards and trade finance servicing fees		556		2.3	%			622		3.9	%			503		0.7	%			2,276		3.4	%			1,771		1.5	%
Gain (loss) on early extinguishment of FHLB advances, net		11,390		46.8	%			—		—	%			—		—	%			10,678		15.9	%			(2,488	)	(2.1	)%
Gain on sale of Headquarters Building (2)		—		—	%			—		—	%			62,387		80.7	%			—		—	%			62,387		51.7	%
Securities (losses) gains, net (3)		(3,364	)	(13.8	)%			1,508		9.5	%			(117	)	(0.2	)%			(3,689	)	(5.5	)%			3,740		3.1	%
Derivative gains (losses), net (4)		1,040		4.3	%			(95	)	(0.6	)%			—		—	%			455		0.7	%			—		—	%
Loan-level derivative income (5)		3,413		14.0	%			2,786		17.5	%			1,973		2.6	%			10,360		15.4	%			3,951		3.3	%
Other noninterest income (6)(7)		1,132		4.5	%			535		3.2	%			1,670		2.2	%			5,491		8.2	%			9,971		8.3	%
Total noninterest income	$	24,365		100.0	%		$	15,956		100.0	%		$	77,290		100.0	%		$	67,277		100.0	%		$	120,621		100.0	%

__________________
(1)   Changes in cash surrender value of BOLI are not taxable.
(2)   The Company sold its Coral Gables headquarters for $135.0 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year term.
(3)   Includes: (i) net loss on sale of debt securities of $2.5 million in the three months ended December 31, 2022 and
net gain on sale of debt securities of $22 thousand and $37 thousand in the three months ended September 30, 2022 and December 31, 2021, respectively, and net loss on sale of debt securities of $2.4 million and net gains on sale of debt securities of $4.3 million in the years ended December 31, 2022 and 2021, respectively, and (ii) unrealized losses of $0.8 million, unrealized gains of $1.5 million, and unrealized losses of $0.1 million in the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively, and unrealized losses of $1.3 million and $0.6 million in the years ended December 31, 2022 and 2021, respectively, related to the change in fair value of marketable equity securities. In addition, in the three months and the year ended December 31, 2021, includes a realized loss of $42 thousand on the sale of a mutual fund with a fair value of $23.4 million at the time of the sale.
(4)   Income from interest rate swaps and other derivative transactions with customers. The Company incurred expenses related to derivative transactions with customers of $3.3 million, $1.8 million and $0.7 million in the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $8.1 million and $0.8 million in the years ended December 31, 2022 and 2021, respectively, which are included as part of noninterest expenses under professional and other services fees.
(5)   Net unrealized gains and losses related to uncovered interest rate caps with clients.
(6)   Includes mortgage banking income of $0.2 million, $0.1 million and $0.9 million in the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $3.4 million and $1.7 million in the years ended December 31, 2022 and 2021, respectively, related to Amerant Mortgage. Other sources of income in the periods shown include from foreign currency exchange transactions with customers and valuation income on the investment balances held in the non-qualified deferred compensation plan.
(7)   Beginning in the three months ended March 31, 2022, rental income associated with the subleasing of portions of the Company’s headquarters building is presented as a reduction to rent expense under lease agreements under occupancy and equipment cost (included as part of other noninterest income in 2021 in connection with the previously-owned headquarters building). In addition, in the three months and year ended December 31, 2022, we had additional rental income in connection with the sublease of the NYC office space. Total rental income from subleases was $1.1 million, $0.7 million and $0.6 million in the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively, and $3.3 million and $2.9 million in the years ended December 31, 2022 and 2021, respectively.

Exhibit 5 - Noninterest Expense

This table shows the amounts of each of the categories of noninterest expense for the periods presented.

	Three Months Ended															Year Ended December 31,
	December 31, 2022					September 30, 2022					December 31, 2021						2022					2021
																					(audited)
(in thousands, except percentages)	Amount		%			Amount		%			Amount		%			Amount		%			Amount		%
Salaries and employee benefits (1)	$	32,786	52.7	%		$	30,109	53.7	%		$	31,309	56.8	%		$	123,510	51.2	%		$	117,585	59.3	%
Occupancy and equipment (2)(3)		6,349	10.2	%			6,559	11.7	%			5,765	10.5	%			27,393	11.3	%			20,364	10.3	%
Professional and other services fees (4)		6,224	10.0	%			5,045	9.0	%			6,589	12.0	%			22,142	9.2	%			19,096	9.6	%
Loan-level derivative expense (5)		3,281	5.3	%			1,810	3.2	%			661	1.2	%			8,146	3.4	%			815	0.4	%
Telecommunications and data processing		3,622	5.8	%			3,861	6.9	%			3,897	7.1	%			14,735	6.1	%			14,949	7.5	%
Depreciation and amortization (6)		1,956	3.1	%			1,481	2.6	%			1,520	2.8	%			5,883	2.4	%			7,269	3.7	%
FDIC assessments and insurance		1,930	3.1	%			1,746	3.1	%			1,340	2.4	%			6,598	2.7	%			6,423	3.2	%
Loans held for sale valuation (reversal) expense (7)		—	—	%			—	—	%			—	—	%			159	0.1	%			—	—	%
Advertising expenses		3,329	5.3	%			2,066	3.7	%			1,463	2.7	%			11,620	4.8	%			3,382	1.7	%
Other real estate owned valuation expense (8)		—	—	%			234	0.4	%			—	—	%			3,408	1.4	%			—	—	%
Contract termination costs (9)		—	—	%			289	0.5	%			—	—	%			7,103	2.9	%			—	—	%
Other operating expenses (10)		2,764	4.5	%			2,913	5.2	%			2,544	4.5	%			10,716	4.5	%			8,359	4.3	%
Total noninterest expense (11)	$	62,241	100.0	%		$	56,113	100.0	%		$	55,088	100.0	%		$	241,413	100.0	%		$	198,242	100.0	%

__________
(1)   Includes severance expense of $1.2 million and $0.4 million in the three months ended December 31, 2022 and September 30, 2022, respectively, and $3.0 million and $3.6 million in the years ended December 31, 2022 and 2021, respectively. There were no significant severance expenses in the three months ended December 31, 2021. Severance expenses in 2022 were primarily related to the elimination of certain support functions due to the restructuring of business lines, as well severance expenses in connection with changes in certain positions. Severance expenses in 2021 were mainly in connection with the departure of the Company’s COO, the elimination of various support function positions, and other actions.
(2)   In the three months ended December 31, 2021, includes $0.5 million, related to the lease termination of a branch in Fort Lauderdale, Florida in 2021. In addition, in the years ended December 31, 2022 and 2021 includes $1.6 million and $0.8 million, respectively, of ROU asset impairment in connection with the closure of a branch in Pembroke Pines, Florida in 2022 and with the lease of the NY loan production office in 2021.
(3)   Beginning in the three months ended March 31, 2022, rental income associated with the subleasing of portions of the Company’s headquarters building is presented as a reduction to rent expense under lease agreements under occupancy and equipment cost (included as part of other noninterest income in 2021 in connection with the previously-owned headquarters building). In addition, in the three months and year ended December 31, 2022, we had additional rental income in connection with the sublease of the NYC office space. Total rental income from subleases was $1.1 million, $0.7 million and $0.6 million in the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively, and $3.3 million and $2.9 million in the years ended December 31, 2022 and 2021, respectively.
(4)   Additional expenses consist of: (i) expenses related to the engagement of FIS of $1.1 million, $1.0 million and $0.5 million in the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $2.9 million and $0.7 million in the years ended December 31, 2022 and 2021, respectively; (ii) $0.2 million in connection with certain search and recruitment expenses in the year ended December 31, 2022; (iii) $0.1 million of costs associated with the subleasing of the New York office space in the year ended December 31, 2022, and (iv) $0.6 million and $0.8 million of expenses in connection with the merger and related transactions in the three months and year ended December 31, 2021, respectively.
(5)  Iincludes services fees in connection with our loan-level derivative income generation activities.
(6)   In the three months and year ended December 31, 2021, includes $0.2 million and $1.8 million, respectively, of depreciation expense associated with Company’s previously-owned headquarters building. No depreciation expense related to the headquarters building was recorded in the three months ended December 31, 2022 and September 30, 2022, and in the year ended December 31, 2022, as this property was sold and leased-back in the fourth quarter of 2021.
(7)   Valuation allowance as a result of changes in the fair value of loans held for sale carried at the lower of cost or fair value.
(8)   Fair value adjustment related to one OREO property in New York.
(9)   Contract termination and related costs associated with third party vendors resulting from the Company’s engagement of FIS.
(10)   In all of the periods shown, includes charitable contributions, community engagement, postage and courier expenses, provisions for possible losses on contingent loans, and debits which mirror the valuation income on the investment balances held in the non-qualified deferred compensation plan in order to adjust the liability to participants of the deferred compensation plan.
(11)   Includes $2.7 million, $2.7 million, and $3.3 million in the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $12.5 million and $7.1 million in the years ended December 31, 2022 and 2021, respectively, related to Amerant Mortgage, primarily consisting of salaries and employee benefits, mortgage lending costs and professional and other service fees.

Exhibit 6 - Consolidated Balance Sheets

(in thousands, except share data)	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
Assets																	(audited)
Cash and due from banks	$	19,486			$	37,631			$	29,217			$	35,242			$	33,668
Interest earning deposits with banks		228,955				218,354				303,030				234,709				240,540
Restricted cash		42,160				46,149				21,808				6,243				—
Cash and cash equivalents		290,601				302,134				354,055				276,194				274,208
Securities
Debt securities available for sale		1,057,621				1,052,329				1,124,801				1,145,785				1,175,319
Debt securities held to maturity		242,101				234,317				238,621				112,008				118,175
Trading securities		—				112				103				—				—
Equity securities with readily determinable fair value not held for trading		11,383				12,232				10,767				13,370				252
Federal Reserve Bank and Federal Home Loan Bank stock		55,575				53,792				48,187				53,806				47,495
Securities		1,366,680				1,352,782				1,422,479				1,324,969				1,341,241
Loans held for sale, at lower of cost or fair value (1)		—				—				66,390				68,591				143,195
Mortgage loans held for sale, at fair value		62,438				57,591				54,863				17,108				14,905
Loans held for investment, gross		6,857,194				6,445,768				5,726,131				5,635,478				5,409,440
Less: Allowance for credit losses (2)		83,500				53,711				52,027				56,051				69,899
Loans held for investment, net		6,773,694				6,392,057				5,674,104				5,579,427				5,339,541
Bank owned life insurance		228,412				227,034				225,682				224,348				223,006
Premises and equipment, net		41,772				41,220				39,091				37,929				37,860
Deferred tax assets, net		48,703				45,791				33,265				22,119				11,301
Operating lease right-of-use assets		139,987				141,453				139,358				139,477				141,139
Goodwill		19,506				19,506				19,506				19,506				19,506
Accrued interest receivable and other assets (3)		156,011				160,411				122,449				96,168				92,497
Total assets	$	9,127,804			$	8,739,979			$	8,151,242			$	7,805,836			$	7,638,399
Liabilities and Stockholders' Equity
Deposits
Demand
Noninterest bearing	$	1,367,664			$	1,318,960			$	1,298,954			$	1,318,294			$	1,183,251
Interest bearing		2,300,469				2,147,008				2,019,661				1,543,708				1,507,441
Savings and money market		1,647,811				1,735,713				1,629,830				1,581,412				1,602,339
Time		1,728,255				1,386,441				1,254,409				1,248,287				1,337,840
Total deposits		7,044,199				6,588,122				6,202,854				5,691,701				5,630,871
Advances from the Federal Home Loan Bank		906,486				981,005				830,524				980,047				809,577
Senior notes		59,210				59,131				59,052				58,973				58,894
Subordinated notes		29,284				29,241				29,199				29,156				—
Junior subordinated debentures held by trust subsidiaries		64,178				64,178				64,178				64,178				64,178
Operating lease liabilities (4)		140,147				140,911				137,808				135,651				136,595
Accounts payable, accrued liabilities and other liabilities (5)		178,574				181,693				116,177				96,734				106,411
Total liabilities		8,422,078				8,044,281				7,439,792				7,056,440				6,806,526
Stockholders’ equity
Class A common stock		3,382				3,376				3,375				3,434				3,589
Additional paid in capital		194,694				191,970				190,337				208,109				262,510
Retained earnings (2)		590,375				588,495				570,588				565,963				553,167
Accumulated other comprehensive income		(80,635	)			(86,208	)			(50,959	)			(24,424	)			15,217
Total stockholders' equity before noncontrolling interest		707,816				697,633				713,341				753,082				834,483
Noncontrolling interest		(2,090	)			(1,935	)			(1,891	)			(3,686	)			(2,610	)
Total stockholders' equity		705,726				695,698				711,450				749,396				831,873
Total liabilities and stockholders' equity	$	9,127,804			$	8,739,979			$	8,151,242			$	7,805,836			$	7,638,399

__________
(1)   As of June 30, 2022, March 31, 2022 and December 31, 2021, consists of NYC real estate loans held for sale carried at the lower of cost or estimated fair value. In the third quarter of 2022, the Company transferred the NYC real estate loans held for sale to the loans held for investment category. In addition, as of June 30, 2022 and March 31, 2022, includes a valuation allowance of $0.2 million and $0.5 million, respectively, as a result of fair value adjustment.
(2)   In the fourth quarter of 2022, the Company adopted the Current Expected Credit Loss (“CECL”) accounting standard using a modified retrospective approach. Therefore, prior periods have not been adjusted and are not comparable. As of January 1, 2022, the beginning of the reporting period of adoption, the Company recorded an increase to its allowance for credit losses (“ACL”) of $18.7 million, with a corresponding after tax cumulative effect adjustment to retained earnings of $13.9 million. In addition, in the fourth quarter of 2022, the Company recorded the impact of CECL on its ACL in 2022 through a provision for credit losses of $11.1 million.
(3)   As of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, include derivative assets with a total fair value of $78.3 million, $78.3 million, $39.8 million, $24.3 million, and $21.9 million, respectively.
(4)   Consists of total long-term lease liabilities. Total short-term lease liabilities are included in other liabilities.
(5)   As of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, include derivatives liabilities with a total fair value of $77.2 million, $78.4 million, $39.7 million, $25.3 million and $22.2 million, respectively.

Exhibit 7 - Loans
Loans by Type - Held For Investment

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

(in thousands)	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
Real estate loans																	(audited)
Commercial real estate
Non-owner occupied	$	1,615,716			$	1,600,281			$	1,530,293			$	1,570,006			$	1,540,590
Multi-family residential		820,023				779,456				532,066				540,726				514,679
Land development and construction loans		273,174				300,476				288,581				296,609				327,246
		2,708,913				2,680,213				2,350,940				2,407,341				2,382,515
Single-family residential		1,102,845				978,674				727,712				707,594				661,339
Owner occupied		1,046,450				992,948				954,538				927,921				962,538
		4,858,208				4,651,835				4,033,190				4,042,856				4,006,392
Commercial loans (1)		1,381,234				1,203,776				1,122,248				1,093,205				965,673
Loans to financial institutions and acceptances		13,292				13,271				13,250				13,730				13,710
Consumer loans and overdrafts (2)		604,460				576,886				557,443				485,687				423,665
Total loans	$	6,857,194			$	6,445,768			$	5,726,131			$	5,635,478			$	5,409,440

__________________
(1)   As of December 31, 2022, September 30, 2022 and June 30, 2022, includes approximately $45.3 million, $31.7 million and $9.9 million, respectively, in commercial loans and leases originated under a white-label equipment financing solution launched in the second quarter of 2022.
(2)   As of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2022 includes $433.3 million, $496.6 million, $477.3 million, $395.7 million and $297.0 million, respectively, in consumer loans purchased under indirect lending programs. In addition, as of December 31, 2022 and September 30, 2022, includes $43.8 million and $6.3 million, respectively, in consumer loans originated under a white-label program.

Loans by Type - Held For Sale

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

(in thousands)	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
Loans held for sale at the lower of fair value or cost																	(audited)
Real estate loans
Commercial real estate
Non-owner occupied	$	—			$	—			$	44,568			$	46,947			$	110,271
Multi-family residential		—				—				20,684				20,796				31,606
		—				—				65,252				67,743				141,877
Owner occupied		—				—				1,297				1,306				1,318
Total real estate loans		—				—				66,549				69,049				143,195
Less: valuation allowance		—				—				159				458				—
Total loans held for sale at the lower of fair value or cost (1)		—				—				66,390				68,591				143,195
Loans held for sale at fair value
Land development and construction loans		9,424				5,560				2,366				836				—
Single-family residential		53,014				52,031				52,497				16,272				14,905
Total loans held for sale at fair value (2)		62,438				57,591				54,863				17,108				14,905
Total loans held for sale (3)	$	62,438			$	57,591			$	121,253			$	85,699			$	158,100

__________________
(1)   As of June 30, 2022, March 31, 2022 and December 31, 2021, consisted of New York real estate loans. In the three months ended September 30, 2022, the Company transferred the New York real estate loans held for sale to the loans held for investment category. During the three months ended March 31, 2022 and December 31, 2021, the Company sold $57.3 million and $49.4 million, respectively, in loans held for sale carried at the lower of cost or estimated fair value related to the New York portfolio. There were no sales of loans in this portfolio during the three months ended September 30, 2022 and June 30, 2022.
(2)   Loans held for sale in connection with Amerant Mortgage’s ongoing business.
(3)   Remained current and in accrual status at each of the periods shown.

Non-Performing Assets

This table shows a summary of our non-performing assets by loan class, which includes non-performing loans and other real estate owned, or OREO, at the dates presented. Non-performing loans consist of (i) nonaccrual loans; (ii) accruing loans 90 days or more contractually past due as to interest or principal; and (iii) restructured loans that are considered TDRs.

(in thousands)	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
Non-Accrual Loans(1)																	(audited)
Real Estate Loans
Commercial real estate (CRE)
Non-owner occupied	$	20,057			$	—			$	1,251			$	12,825			$	7,285
Multi-family residential		—				—				—				—				—
		20,057				—				1,251				12,825				7,285
Single-family residential		1,526				1,465				2,755				3,717				5,126
Owner occupied		6,270				6,357				9,558				10,770				8,665
		27,853				7,822				13,564				27,312				21,076
Commercial loans (2) (3)		9,271				9,715				8,987				19,178				28,440
Consumer loans and overdrafts (4)		4				947				2,398				468				257
Total Non-Accrual Loans	$	37,128			$	18,484			$	24,949			$	46,958			$	49,773
Past Due Accruing Loans(5)
Real Estate Loans
Commercial real estate (CRE)
Single-family residential		253				4				162				—				—
Commercial		183				245				—				—				—
Consumer loans and overdrafts		35				7				42				10				8
Total Past Due Accruing Loans		471				256				204				10				8
Total Non-Performing Loans		37,599				18,740				25,153				46,968				49,781
Other Real Estate Owned		—				6,312				6,545				9,720				9,720
Total Non-Performing Assets	$	37,599			$	25,052			$	31,698			$	56,688			$	59,501

__________________
(1)   Prior to the adoption of CECL in the fourth quarter of 2022, included loan modifications that met the definition of TDRs which may be performing in accordance with their modified loan terms. As of June 30, 2022, March 31, 2022 and December 31, 2021, non-performing TDRs included $8.3 million, $8.6 million, and $9.1 million, respectively, in a multiple loan relationship to a South Florida borrower. In the third quarter of 2022, this loan relationship was upgraded and placed back in accrual status.
(2)   As of March 31, 2022 and December 31, 2021, includes $9.1 million in a commercial relationship placed in nonaccrual status during the second quarter of 2020. During the third quarters of 2021 and 2020, the Company charged off $5.7 million and $19.3 million, respectively, against the allowance for loan losses as result of the deterioration of this commercial relationship. In addition, in connection with this loan relationship, the Company collected a partial principal payment of $4.8 million in the fourth quarter of 2021. Furthermore, in the second quarter of 2022, the Company collected an additional partial principal payment of $5.5 million and charged off the remaining balance of $3.6 million against the allowance for loans losses. Therefore, as of December 31, 2022, September 30, 2022 and June 30, 2022, there were no outstanding balances associated with this loan relationship.
(3)   In the first quarter of 2022, the Company collected a partial payment of approximately $9.8 million on one commercial nonaccrual loan of $12.4 million. Also, in the first quarter of 2022, the Company charged off the remaining balance of this loan of $2.5 million against its specific reserve at December 31, 2021.
(4)   In the fourth quarter of 2022, the Company changed its charge-off policy for unsecured consumer loans from 120 to 90 days past due. This change resulted in an additional $3.4 million in charge-off for unsecured consumer loans in the fourth quarter of 2022.
(5)   Loans past due 90 days or more but still accruing.

Loans by Credit Quality Indicators

This table shows the Company’s loans by credit quality indicators. We have not purchased credit-impaired loans.

	December 31, 2022									September 30, 2022									December 31, 2021
																			(audited)
(in thousands)	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	$	8,378	$	20,113	$	—	$	28,491		$	37,364	$	—	$	—	$	37,364		$	34,205	$	5,890	$	1,395	$	41,490
Multi-family residential		—		—		—		—			—		—		—		—			—		—		—		—
Land development and construction loans		—		—		—		—			—		—		—		—			—		—		—		—
		8,378		20,113		—		28,491			37,364		—		—		37,364			34,205		5,890		1,395		41,490
Single-family residential		—		1,930		—		1,930			—		1,717		—		1,717			—		5,221		—		5,221
Owner occupied		—		6,356		—		6,356			—		6,445		—		6,445			7,429		8,759		—		16,188
		8,378		28,399		—		36,777			37,364		8,162		—		45,526			41,634		19,870		1,395		62,899
Commercial loans (2)		1,749		10,446		3		12,198			1,800		10,942		3		12,745			32,452		20,324		9,497		62,273
Consumer loans and overdrafts		—		230		—		230			—		947		—		947			—		270		—		270
	$	10,127	$	39,075	$	3	$	49,205		$	39,164	$	20,051	$	3	$	59,218		$	74,086	$	40,464	$	10,892	$	125,442

__________
(1)   There were no loans categorized as “Loss” as of the dates presented.
(2)   Loan balances as of December 31, 2021 include $9.1 million in a commercial relationship placed in nonaccrual status and downgraded during the second quarter of 2020. As of December 31, 2021, Substandard loans include $4.9 million and doubtful loans include $4.2 million, related to this commercial relationship. During the third quarters of 2021 and 2020, the Company charged off $5.7 million and $19.3 million, respectively, against the allowance for loan losses as result of the deterioration of this commercial relationship. In addition, in connection with this loan relationship, the Company collected a partial principal payment of $4.8 million in the fourth quarter of 2021. Furthermore, in the second quarter of 2022, the Company collected an additional partial principal payment of $5.5 million and charged off the remaining balance of $3.6 million against the allowance for loans losses. Therefore, as of December 31, 2022 and September 30, 2022, there were no outstanding balances associated with this loan relationship.

Exhibit 8 - Deposits by Country of Domicile

This table shows the Company’s deposits by country of domicile of the depositor as of the dates presented.

(in thousands)	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
																	(audited)
Domestic	$	4,620,906			$	4,166,281			$	3,722,433			$	3,180,112			$	3,137,258
Foreign:
Venezuela		1,911,551				1,931,330				1,964,796				2,004,305				2,019,480
Others		511,742				490,511				515,625				507,284				474,133
Total foreign		2,423,293				2,421,841				2,480,421				2,511,589				2,493,613
Total deposits	$	7,044,199			$	6,588,122			$	6,202,854			$	5,691,701			$	5,630,871

CONTACTS:

Investors

Laura Rossi

InvestorRelations@amerantbank.com

(305) 460-8728

Media

Victoria Verdeja

MediaRelations@amerantbank.com

(305) 441-8414

 

FAQ

What was Amerant Bancorp's net income for Q4 2022?

Amerant Bancorp reported a net income of $18.8 million for Q4 2022.

What is the cash dividend declared by Amerant Bancorp?

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

When is the earnings call for Amerant Bancorp's Q4 results?

The earnings call for Amerant Bancorp's Q4 results is scheduled for January 20, 2023.

How did total assets change for Amerant Bancorp in Q4 2022?

Total assets increased to $9.1 billion, up 4.44% compared to Q3 2022.

What impact did the CECL accounting standard have on Amerant Bancorp?

The CECL accounting standard increased the allowance for credit losses to $83.5 million.