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Amerant Reports Record Fourth Quarter 2021 Net Income of $65.5 Million or Diluted Earnings Per Share of $1.77 and Full-Year 2021 Net Income of $112.9 Million or Diluted Earnings Per Share of $3.01; Declares Cash Dividend of $0.09 Per Share

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Amerant Bancorp reported a substantial increase in net income for Q4 2021, reaching $65.5 million ($1.77 per share), compared to $17.0 million in Q3 2021. This improvement reflects a robust 284.4% quarter-over-quarter and a 672.7% year-over-year growth. Core pre-provision net revenue (Core PPNR) reached approximately $19 million, while total loans saw growth of $88.6 million during the same period. Additionally, non-performing loans decreased to 0.89% of total loans, and net interest margin improved to 3.17%.

Positive
  • Net income increased to $65.5 million in Q4 2021, up 284.4% from Q3 2021.
  • Core pre-provision net revenue grew to approximately $19 million, reflecting strategic improvements.
  • Non-performing loans to total loans decreased to 0.89%, signaling improved credit quality.
  • Net interest margin rose to 3.17%, an increase of 23 basis points from the previous quarter.
  • Achieved $12 million in expected annual savings from outsourcing agreement with FIS.
Negative
  • Core net income for full-year 2021 decreased to $66.8 million from $71.0 million in 2020.
  • Noninterest expense increased by 13.8% from Q3 2021, driven by higher consulting and professional fees.
  • Total gross loans declined by $274.8 million year-over-year, reflecting market challenges.

Significant Improvement Shown in Key Performance Metrics

  • Core pre-provision net revenue (“Core PPNR”)1 grew to approximately $19 million in the fourth quarter of 2021, an increase from $18.3 million in the third quarter of 2021, and an increase from $17.6 million in the fourth quarter of 2020

  • Loan growth of $88.6 million, or 1.62%, compared to the close of the third quarter of 2021, even with approximately $337 million in prepayments and $49.4 million in sales of former NYC production office loans

  • Non-performing loans to total loans declined to 0.89%, or $49.8 million compared to 1.51%, or $82.7 million last quarter

  • Net interest margin grew to 3.17% in the fourth quarter of 2021, up 23 basis points from 2.94% in the third quarter of 2021

CORAL GABLES, Fla., Jan. 19, 2022 (GLOBE NEWSWIRE) -- Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $65.5 million in the fourth quarter of 2021, or $1.77 per diluted share, an increase compared to net income attributable to the Company of $17.0 million, or $0.45 per diluted share, in the third quarter of 2021 and net income attributable to the Company of $8.5 million, or $0.20 per diluted share, in the fourth quarter of 2020. Net income attributable to the Company was $112.9 million for the full-year 2021, compared to a net loss attributable to the Company of $1.7 million for the full-year 2020. Pre-provision net revenue (“PPNR”)1 was $79.1 million in the fourth quarter of 2021, an increase from $17.5 million in the third quarter of 2021, and an increase from $8.5 million in the fourth quarter of 2020. PPNR1 was $130.1 million for the full-year 2021, an increase from $84.3 million for the full-year 2020. Core PPNR1 was $69.9 million for the full-year 2021, compared to $71.0 million for the full-year 2020.

Annualized return on assets (“ROA”) and return on equity (“ROE”) were 3.45% and 32.04%, respectively, in the fourth quarter of 2021, compared to 0.90% and 8.38%, respectively, in the third quarter of 2021, and 0.42% and 4.09%, respectively, in the fourth quarter of 2020. ROA and ROE were 1.50% and 14.19%, respectively, for the full-year 2021, compared to negative 0.02% and 0.21%, respectively, for the full-year 2020.

“We believe the record fourth quarter results show the steps we have taken throughout the year to position the company for success are coming to fruition,” stated Jerry Plush, Vice Chairman, President and CEO. He added, “While we are excited about the progress we made throughout 2021 toward becoming a higher performing bank, it is essential that we remain focused on the continued execution of our strategy to achieve even stronger performance in 2022.”

Other significant highlights in the quarter include:

  • Entered into a new outsourcing agreement with FIS to assume full responsibility over a significant number of the Bank’s support functions and staff; expected estimated annual savings of approximately $12 million

  • Effected a clean-up merger (the “Merger”), which eliminated class B shares and reduced the number of shares outstanding

  • $27.9 million and 893,394 Class A shares repurchased as of December 31, 2021 in execution of $50-million share buyback program approved on September 10, 2021

  • Declared the first cash dividend as a public company of $0.06 per share paid on January 14, 2022

  • Executed on sale and leaseback of the Company’s headquarters building in Coral Gables; reducing fixed assets by $69.9 million and recognizing a gain on sale of $62.4 million

Summary Results

Results of the fourth quarter and full-year ended December 31, 2021 were as follows:

  • Net income attributable to Amerant was $65.5 million in the fourth quarter of 2021, up 284.4% from $17.0 million in the third quarter of 2021, and up 672.7% from $8.5 million in the fourth quarter of 2020. Net income was $112.9 million for the full-year 2021, compared to a net loss of $1.7 million for the full-year 2020. Core net income1 was $19.3 million in the fourth quarter of 2021 compared to $17.7 million in the third quarter of 2021, and compared to core net income of $20.9 million in the fourth quarter of 2020. Core net income1 was $66.8 million for the full-year 2021, compared to a core net loss1 of $7.0 million for the full-year 2020.

  • Net Interest Income (“NII”) was $55.8 million, up 7.6% from $51.8 million in the third quarter of 2021, and up 14.7% from $48.7 million in the fourth quarter of 2020. NII was $205.1 million for the full-year 2021, up $15.6 million, or 8.2%, from $189.6 million for the full-year 2020. Net interest margin (“NIM”) was 3.17% in the fourth quarter of 2021, up 23 basis points from 2.94% in the third quarter of 2021, and up 56 basis points from 2.61% in the fourth quarter of 2020. NIM was 2.90% for the full-year 2021, up 38 basis points from 2.52% for the full-year 2020.

  • Amerant released $6.5 million from the allowance for loan losses (“ALL”) during the fourth quarter of 2021, compared to a release of $5.0 million in the third quarter of 2021. No provision for loan losses was recorded in the fourth quarter of 2020. There was a release of $16.5 million from the ALL in the full-year 2021, compared to a provision for loan losses of $88.6 million in the full-year 2020. The ratio of allowance for loan losses to total loans held for investment was 1.29% as of December 31, 2021, down from 1.59% as of September 30, 2021, and down from 1.90% as of December 31, 2020. The ratio of net charge-offs to average total loans held for investment in the fourth quarter of 2021 was 0.52% compared to 1.16% in the third quarter of 2021, and 0.40% in the fourth quarter of 2020. The ratio of net charge-offs to average total loans held for investment in the full-year 2021 was 0.44%, compared to 0.52% in the full-year 2020.

  • Noninterest income was $77.3 million in the fourth quarter of 2021, up 475.3% from $13.4 million in the third quarter of 2021, and up 571.2% from $11.5 million in the fourth quarter of 2020, as the fourth quarter of 2021 included a $62.4 million gain on the sale of the Company’s headquarters building. Noninterest income was $120.6 million in the full-year 2021, up $47.2 million, or 64.2%, compared to $73.5 million in the full-year 2020. Noninterest income for the full year 2020 includes a $26.5 million gain on sale of securities.

  • Noninterest expense was $55.1 million, up 13.8% from $48.4 million in the third quarter of 2021, and up 6.7% from $51.6 million in the fourth quarter of 2020. Noninterest expense was $198.2 million in the full-year 2021, up $19.5 million, or 10.9%, compared to $178.7 million in the full-year 2020.

  • The efficiency ratio was 41.4% in the fourth quarter of 2021, compared to 74.2% in the third quarter of 2021, and 85.8% in the fourth quarter of 2020. For the full-year 2021 the efficiency ratio was 60.9%, compared to 68.0% for the full-year 2020. Core efficiency ratio1 was 75.0% in the fourth quarter of 2021, compared to 73.0% in the third quarter of 2021, and 71.0% in the fourth quarter of 2020. For the full-year 2021 core efficiency ratio1 was 74.0%, compared to 70.1% for the full-year 2020.

  • Total gross loans, which include loans held for sale, were $5.6 billion at the close of the fourth quarter of 2021, up $88.6 million, or 1.6%, compared to the close of the third quarter of 2021, and down $274.8 million, or 4.7%, compared to the close of the fourth quarter of 2020. Total deposits were $5.6 billion at the close of the fourth quarter of 2021, up slightly by $4.5 million, or 0.1%, compared to the close of the third quarter of 2021, and down $100.8 million, or 1.8%, compared to the close of the fourth quarter 2020.

  • Stockholders’ book value per common share attributable to the Company increased to $23.18 at December 31, 2021, compared to $21.68 at September 30, 2021, and $20.70 at December 31, 2020. Tangible book value (“TBV”)1 per common share increased to $22.55 as of December 31, 2021, compared to $21.08 at September 30, 2021, and $20.13 at December 31, 2020.

Credit Quality

The ALL was $69.9 million at the close of the fourth quarter of 2021, compared to $83.4 million at the close of the third quarter of 2021, and $110.9 million at the close of the fourth quarter of 2020. The Company released $6.5 million from the ALL in the fourth quarter of 2021, compared to a release of $5.0 million in the third quarter of 2021. No provision for loan losses was recorded in the fourth quarter of 2020. The ALL release during the fourth quarter of 2021 was primarily attributed to improved macro-economic conditions and upgrades, payoffs and pay-downs of non-performing loans and special mention loans, offset by additional reserves requirements for charge-offs and loan growth. The ALL associated with the COVID-19 pandemic decreased slightly to approximately $14.1 million in the fourth quarter of 2021.

Net charge-offs during the fourth quarter of 2021 totaled $7.0 million, compared to $15.7 million in the third quarter of 2021 and $5.9 million in the fourth quarter of 2020. Charge-offs during the period were primarily due to $3.9 million in commercial loans, $1.8 million in CRE loans and $1.4 million in consumer loans, offset by $0.5 million in recoveries. Additionally, in connection with the Coffee Trader relationship, we collected $4.8 million, which contributed to a release of $2.3 million in specific reserves. This relationship had an outstanding balance of $9.1 million as of the end of the fourth quarter of 2021.

Classified and special mention loans decreased 39.0% and 4.1%, respectively, compared to the third quarter of 2021, and 42.0% and 37.6%, respectively, compared to the fourth quarter of 2020. The decrease in classified loans was mainly due to $25.2 million in payoffs and pay-downs, and $7.5 million due to charge-offs. The decrease in special mention loans was mainly due to $10.0 million in payoffs and pay-downs and $2 million in upgrades, offset by $7.9 million in CRE and commercial loan downgrades.

Non-performing assets totaled $59.5 million at the end of the fourth quarter of 2021, a decrease of $33.0 million or 35.7%, compared to the third quarter of 2021, and $28.6 million, or 32.5%, compared to the fourth quarter of 2020, due to the decrease in classified loans as mentioned above. The ratio of non-performing assets to total assets at the end of the fourth quarter of 2021 was 78 basis points, down 46 basis points from 124 basis points in the third quarter of 2021 and 35 basis points from 113 basis points in the fourth quarter of 2020. In the fourth quarter of 2021, the ratio of ALL to non-performing loans increased to 140.41%, from 100.84% at September 30, 2021 and 126.46% at the close of the fourth quarter of 2020.

Loans and Deposits

Total loans, including loans held for sale, as of December 31, 2021 were $5.6 billion, up $88.6 million, or 1.6%, compared to September 30, 2021, and down $274.8 million, or 4.7% compared to December 31, 2020. Loans held for sale totaled $158.1 million and $224.9 million as December 31, 2021 and September 30, 2021, respectively. There were no loans held for sale at December 31, 2020. Loans held for sale include $14.9 million in residential mortgage loans in connection with Amerant Mortgage, Inc. (“AMTM”) and $143.2 million New York loans. During the fourth quarter of 2021, the Company sold $49.4 million in loans held for sale related to the NY portfolio, at par. The increase in total loans was primarily due to increased loan production compared to previous quarters, partially offset by approximately $337 million in prepayments received primarily in CRE loans. During the fourth quarter of 2021, the Company continued to purchase higher yielding indirect consumer loans. Consumer loans as of December 31, 2021 were $423.7 million, an increase of $65.2 million, or 18.2%, quarter over quarter. The Company purchased approximately $85.7 million of higher-yielding indirect consumer loans during the fourth quarter of 2021.

Core deposits as of December 31, 2021 were $4.3 billion, an increase of $109.4 million or 2.6%, compared to September 30, 2021, and $603.0 million, or 16.3% compared to December 31, 2020. This change includes interest bearing demand deposits of $1.51 billion as of December 31, 2021, compared to $1.32 billion as of September 30, 2021, noninterest bearing demand deposits of $1.18 billion as of December 31, 2021 compared to $1.21 billion as of September 30, 2021, and savings and money market deposits of $1.60 billion as of December 31, 2021 compared to $1.66 billion as of September 30, 2021. Total deposits as of December 31, 2021 were $5.6 billion, slightly up $4.5 million, or 0.08%, compared to September 30, 2021. Domestic deposits totaled $3.1 billion, up $46.7 million, or 1.5%, compared to September 30, 2021, while foreign deposits totaled $2.5 billion, down $42.2 million, or 1.7%, compared to September 30, 2021.

The quarter-over-quarter increase in total deposits was primarily attributable to an increase in customer transaction account balances of $109.1 million, or 2.7%, compared to September 30, 2021, with interest bearing demand contributing $187.7 million to such growth, and savings and money market and noninterest bearing deposits partially offsetting the increase in transaction account balances by $26.9 million and $51.7 million, respectively. Offsetting the increase in total deposits was a reduction of $105.0 million, or 7.3%, in time deposits. Customer CDs compared to the prior quarter decreased $59.1 million, or 5.3%, as the Company continued to lower CD rates and focus on increasing core deposits and emphasizing multi-product relationships versus single product higher-cost CDs. Brokered time deposits decreased $45.8 million, or 13.7%, compared to September 30, 2021, and brokered interest bearing and money market deposits increased $0.4 million, or 0.4% during the fourth quarter of 2021. Amerant continues to de-emphasize this funding source.

Net Interest Income and Net Interest Margin

Fourth quarter 2021 NII was $55.8 million, up $4.0 million, or 7.6%, from $51.8 million in the third quarter of 2021 and up $7.1 million, or 14.7%, from $48.7 million in the fourth quarter of 2020. The quarter-over-quarter increase was primarily driven by higher average yields, including prepayment fees, and balances on loans, as well as lower average balances on customer CDs and brokered time deposits. There were no significant offsets to the increase in NII during the fourth quarter.

The year-over-year increase in NII was primarily driven by lower average balances on CDs and brokered deposits and lower deposit costs as well as higher average loan and investment yields. Lower cost and average balances on FHLB advances and other borrowings also contributed to the increase in NII. Partially offsetting the year-over-year increase in NII were lower balances on loans as well as available for sale securities.

NII was $205.1 million for the full-year 2021, up $15.6 million, or 8.2%, from $189.6 million for the full-year 2020. This increase was primarily driven by: (i) lower cost of total deposits and Federal Home Loan Bank advances; (ii) lower average balance of CDs, brokered deposits and FHLB advances, and (iii) higher average yields on loans. These were partially offset by: (i) lower average balance of earning assets; (ii) higher average balance of Senior Notes as these were issued late in the second quarter of 2020, and (iii) higher average balance of interest bearing and savings and money market deposits.

NIM was 3.17% in the fourth quarter of 2021, up 23 basis points from 2.94% in the third quarter of 2021 and up 56 basis points from 2.61% in the fourth quarter of 2020. To support NIM growth, the Company continues to proactively seek to increase spreads in loan originations. NIM was 2.90% for the full-year 2021, up 38 basis points from 2.52% for the full-year 2020.

Noninterest income

In the fourth quarter of 2021, noninterest income was $77.3 million, up $63.9 million, or 475.3%, from $13.4 million in the third quarter of 2021. The increase was primarily driven by a $62.4 million gain on the sale of the Company’s headquarters building in the fourth quarter of 2021. Also contributing to the increase in noninterest income quarter-over-quarter were higher (i) derivative client income; (ii) income from brokerage, advisory and fiduciary activities, (iii) mortgage banking income; and (iv) total deposit and service fees.

Noninterest income increased $65.8 million, or 571.2%, in the fourth quarter of 2021 from $11.5 million in the fourth quarter of 2020. The year-over-year increase in noninterest income was primarily driven by the $62.4 million gain on the sale of the Company’s headquarters building. Also contributing to the increase in noninterest income year-over-year were higher (i) derivative client income; (ii) mortgage banking income; (iii) income from brokerage, advisory and fiduciary activities, and (iv) total deposit and service fees. The increase was partially offset by a decrease of $1.1 million in gains on sale of debt securities.

In the full-year 2021, noninterest income increased $47.2 million, or 64.2%, from $73.5 million in the full-year 2020. This increase was primarily driven by the $62.4 million gain on sale of the Company’s headquarters building. Also contributing to the increase in noninterest income for the full year 2021 were: (i) a net gain of $3.8 million on the sale of $95.1 million of PPP loans in the second quarter of 2021; (ii) $1.7 million higher income from brokerage, advisory and fiduciary activities; (iii) mortgage banking income of $1.7 million; (iv) $1.4 million higher total deposit and service fees, and (v) $0.8 million higher derivative client income. These increases were partially offset by a decrease in net gains on securities of $23.3 million, and a net loss of $2.5 million on the early termination of $235 million of FHLB advances during the period.

Amerant Mortgage continues to execute on its growth strategy. In the fourth quarter of 2021, AMTM received 166 applications and funded 61 loans totaling $32.04 million. Total mortgage loans held for sale were $14.9 million as of December 31, 2021. For the full year 2021, AMTM received 299 applications and funded 109 loans totaling $52.6 million.

The Company’s assets under management and custody (“AUM”) totaled $2.22 billion as of December 31, 2021, increasing $32.8 million, or 1.5%, from $2.19 billion as of September 30, 2021, and $248.8 million, or 12.6%, from $1.97 billion as of December 31, 2020. The quarter-over-quarter increase in AUM was primarily driven by net new assets of $28.6 million. The year-over-year increase in AUM was primarily driven by increased market value as well as net new assets of $106.7 million. Net new assets represent 87.3% and 42.9% of the quarter-over-quarter and year-over-year increases, respectively, as a result of the increase in share of wallet attributed to the Company’s relationship-centric strategy.

Noninterest expense

Fourth quarter of 2021 noninterest expense was $55.1 million, up $6.7 million, or 13.8%, from $48.4 million in the third quarter of 2021. The increase was primarily driven by: (i) higher consulting, legal and other professional fees in connection with the Merger completed on November 18, 2021 as well as expenses related to consulting services received from FIS; (ii) higher salaries and employee benefits primarily as a result of new hires in the mortgage and private banking businesses as well as higher variable compensation expenses resulting from higher estimated payouts to match expected performance; (iii) higher occupancy and equipment costs in connection with the lease termination of the Fort Lauderdale branch closed in 2020, and (iv) higher marketing expenses as multiple brand awareness initiatives were deployed during the fourth quarter. These increases were partially offset by lower depreciation and amortization expenses, which includes the effect of the sale of the Company’s headquarters building, and lower FDIC assessment and insurance expenses. Total full-time-equivalent employees (“FTEs”) at December 31, 2021 were 763. As a result of the Company’s agreement with FIS, Amerant transferred certain functions, reducing total FTEs to 683 effective January 1, 2022.

Noninterest expense in the fourth quarter of 2021, increased $3.5 million, or 6.7% compared to $51.6 million in the fourth quarter of 2020. The increase was primarily driven by higher consulting, legal and other professional fees in connection with the Merger completed on November 18, 2021, expenses related to consulting services received from FIS and to the onboarding of the new firm as a result of outsourcing of the Company’s internal audit function, as well as higher marketing expenses. This was partially offset by lower depreciation and amortization expenses primarily due to lower additional expenses related to branch closures and lower expenses due to the leasing of the Beacon operations center and the Company’s headquarters building (both previously owned). In addition, there was a decrease in total salaries and employee benefits primarily driven by lower severance expenses. The decrease in total salaries and employee benefits was partially offset by: (i) higher bonus compensation due to the new long term incentive (“LTI”) program which was launched in February 2021, and adjustments to the Company’s non-equity variable compensation program in 2021, at expected performance levels, after having curtailed it in 2020 due to the COVID-19 pandemic, and (ii) higher salaries and employee benefits expenses in connection with new hires, primarily in the mortgage and private banking businesses.

In the full-year 2021, noninterest expense increased $19.5 million, or 10.9%, compared to $178.7 million in the full-year 2020. This increase was primarily driven by: (i) higher professional and other services fees primarily due to the Merger, expenses related to consulting services received from FIS, the onboarding of the new firm as a result of outsourcing of the Company’s internal audit function, higher recruitment fees and the design of our new compensation programs; (ii) higher salary and employee benefits primarily due to the absence of the $7.8 million deferral of expenses directly related to PPP loans originations, in accordance with GAAP, and new hires in the mortgage and private banking businesses, though partially offset by staff reductions performed at the end of 2020; (iii) an increase in equity compensation primarily related to the aforementioned LTI program; (iv) adjustments to the Company’s non-equity variable compensation program in 2021, at expected performance levels, after having curtailed it in 2020 due to the COVID-19 pandemic; (v) higher occupancy and equipment costs primarily due to increased rent expense resulting from the leasing of the Beacon Operations Center, and a $0.8 million lease impairment charge related to the closing of the NY Loan Production Office (“LPO”) in 2021; (vi) higher marketing expenses, and (vii) telecommunication and data processing expenses. These increases were partially offset by lower depreciation and amortization expenses due to the aforementioned leasing of the Beacon Operations Center and the Company’s headquarters building.

Year-to-date, the mortgage business has recorded $7.1 million in noninterest expenses, from which $5.5 million are related to salaries and employee benefits expenses, $1.6 million to mortgage lending costs, professional fees and the balance to other noninterest expenses.

Restructuring expenses totaled $1.9 million in the fourth quarter of 2021, compared to $0.8 million in the third quarter of 2021 and $8.4 million in the fourth quarter of 2020. The increase in the fourth quarter of 2021 compared to the third quarter of 2021 was primarily due to higher one-time legal and consulting expenses of $0.9 million, and branch closure expenses of $0.5 million in the fourth quarter of 2021. The decrease in the fourth quarter of 2021 compared to the fourth quarter of 2020, was primarily driven by lower staff reductions costs and lower branch closure expenses. Restructuring expenses totaled $7.1 million in the full-year 2021 compared to $11.9 million in the full-year 2020. The decrease in the full-year 2021 compared to the full-year 2020 was primarily driven by lower staff reductions costs, digital transformation and branch closure expenses.

The efficiency ratio was 41.4% in the fourth quarter of 2021, compared to 74.2% in the third quarter of 2021, and 85.8% in the fourth quarter of 2020. The quarter-over-quarter and year-over-year improvements in the efficiency ratio were primarily driven by the gain on sale of the Company’s headquarters building. Partially offsetting this improvement were higher noninterest expenses as noted above. Core efficiency ratio1 increased to 75.0% in the fourth quarter of 2021 compared to 73.0% in the third quarter of 2021 and 71.0% in the fourth quarter of 2020, also primarily driven by higher noninterest expenses as described above, though partially offset by higher loan average yields, including prepayment fees, and balances. For the full-year 2021 the efficiency ratio was 60.9%, compared to 68.0% for the full-year 2020.

As part of Amerant’s continued efforts to improve its operating efficiency, during the fourth quarter of 2021 the Company entered into a new multi-year outsourcing agreement with financial technology leader FIS® to assume full responsibility over a significant number of the Bank’s support functions and staff, including certain back-office operations. Under this new outsourcing relationship, the Bank expects to realize estimated annual savings of approximately $12.0 million, while achieving greater operational efficiencies and delivering advanced solutions and services to its customers. Also, as previously announced, the Company closed a banking center in Wellington, FL in October 2021 and expects to open a new branch in downtown Miami in the fourth quarter of 2022.

As part of Amerant’s keen focus to generate brand awareness, the Company continued to work on several initiatives during the fourth quarter of 2021 and into 2022. As mentioned during the third quarter of 2021, Amerant’s new “Imagine a Bank” campaign was launched during the fourth quarter of 2021 and a significant expansion to it went live on January 3, 2022. In addition, the bank continued to leverage our partnership with the Atlantic Division leading Florida Panthers to also drive brand awareness.

Capital Resources and Liquidity

The Company’s capital continues to be strong and well in excess of the minimum regulatory requirements to be considered “well-capitalized” at December 31, 2021.

During the fourth quarter of 2021, Amerant delivered on its previously announced commitment to simplify its capital structure. On November 18, 2021 the Company completed “the Merger”, by automatically converting shares of the Company’s Class B common stock into shares of the Company’s Class A common stock pursuant to the Merger’s terms. Additionally, during the fourth quarter of 2021, Amerant continued to demonstrate its commitment to increasing total return to shareholders, as evidenced by the completion of $36.3 million of Class A shares repurchased in 2021 (including the cash out of holders of 99 shares or less in connection with the Merger) and the declaration, on December 9, 2021, of a cash dividend of $0.06 per share of Amerant common stock. Additionally, on January 19, 2022, the Company's Board declared a cash dividend of $0.09 per share of common stock, payable on February 28, 2022, to holders of record on February 11 , 2022

Stockholders’ equity attributable to the Company totaled $831.9 million as of December 31, 2021, up $19.2 million, or 2.4%, from $812.7 million as of September 30, 2021, primarily driven by net income of $65.5 million in the fourth quarter of 2021. This increase was partially offset by: (i) an aggregate of $36.3 million of Class A shares repurchased in the fourth quarter of 2021, including $27.9 million repurchased under the Class A repurchase program and $8.5 million shares cashed out in accordance with the terms of the Merger; (ii) an after-tax decline of $6.0 million in the fair value of debt securities available for sale, and (iii) $2.2 million of dividends declared by the Company in the fourth quarter of 2021.

Stockholders’ equity attributable to the Company increased $48.5 million, or 6.2%, in the full-year 2021 from $783.4 million as of December 31, 2020. This was primarily driven by net income of $112.9 million in the year ended December 31, 2021. This increase was partially offset by: (i) an aggregate of $36.3 million of Class A shares repurchased in 2021, as mentioned above; (ii) $9.6 million in Class B shares repurchased by the Company in 2021; (iii) an after-tax decline of $16.2 million in the fair value of debt securities available for sale, and (iv) $2.2 million of dividends declared by the Company in the fourth quarter of 2021.

Book value per common share increased to $23.18 at December 31, 2021 compared to $21.68 at September 30, 2021. TBV1 per common share increased to $22.55 at December 31, 2021 compared to $20.13 at September 30, 2021.

Amerant’s liquidity position includes cash and cash equivalents of $274.2 million at the close of the fourth quarter of 2021, compared to $166.2 million as of September 30, 2021, and $214.4 million as of December 31, 2020. Additionally, as of the end of the fourth and third quarters of 2021 the Company, through its subsidiary Amerant Bank, had $1.4 billion in available borrowing capacity with the FHLB.

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

Fourth Quarter 2021 Earnings Conference Call

As previously announced, the Company will hold an earnings conference call on Thursday, January 20, 2022 at 9:00 a.m. (Eastern Time) to discuss its fourth quarter 2021 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the Company’s website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link.

About Amerant Bancorp Inc. (NASDAQ: AMTB)

Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S., as well as select international clients, with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the second largest community bank headquartered in Florida. The Bank operates 24 banking centers – 17 in South Florida and 7 in the Houston, Texas area. For more information, visit investor.amerantbank.com.

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

Cautionary Notice Regarding Forward-Looking Statements

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

Forward-looking statements, including those relating to our outsourcing relationship with FIS, as well as other statements as to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2020, in our quarterly report on Form 10-Q for the quarter ended June 30, 2021 and in our other filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website www.sec.gov.

Interim Financial Information

Unaudited financial information as of and for interim periods, including the three and twelve month periods ended December 31, 2021 and the three month period ended December 31, 2020, may not reflect our results of operations for our fiscal year ended, or financial condition as of December 31, 2021, or any other period of time or date.

Non-GAAP Financial Measures

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

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

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


Exhibit 1- Selected Financial Information

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

(in thousands)December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020
Consolidated Balance Sheets         
Total assets$7,638,399 $7,489,305 $7,532,844 $7,751,098 $7,770,893
Total investments 1,341,241  1,422,738  1,359,240  1,375,292  1,372,567
Total gross loans (1) 5,567,540  5,478,924  5,608,548  5,754,838  5,842,337
Allowance for loan losses 69,899  83,442  104,185  110,940  110,902
Total deposits 5,630,871  5,626,377  5,674,908  5,678,079  5,731,643
Core deposits (2) 4,293,031  4,183,587  4,041,867  3,795,949  3,690,081
Advances from the FHLB and other borrowings 809,577  809,095  808,614  1,050,000  1,050,000
Senior notes 58,894  58,815  58,736  58,656  58,577
Junior subordinated debentures 64,178  64,178  64,178  64,178  64,178
Stockholders' equity (3)(4)(9) 831,873  812,662  799,068  785,014  783,421
Assets under management and custody (5) 2,221,077  2,188,317  2,132,516  2,018,870  1,972,321
               


 Three Months Ended  Years Ended December 31,
(in thousands, except percentages and per share amounts)December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020  2021   2020 
Consolidated Results of Operations             
Net interest income$55,780  $51,821  $49,971  $47,569  $48,652  $205,141  $189,552 
(Reversal of) provision for loan losses (6,500)  (5,000)  (5,000)  —   —   (16,500)  88,620 
Noninterest income 77,290   13,434   15,734   14,163   11,515   120,621   73,470 
Noninterest expense 55,088   48,404   51,125   43,625   51,629   198,242   178,736 
Net income (loss) attributable to Amerant Bancorp Inc. (6) 65,469   17,031   15,962   14,459   8,473   112,921   (1,722)
Effective income tax rate 23.88%  24.96%  22.65%  20.15%  0.76%  23.41%  60.27%
              
Common Share Data              
Stockholders' book value per common share$23.18  $21.68  $21.27  $20.70  $20.70  $23.18  $20.70 
Tangible stockholders' equity (book value) per common share (7)$22.55  $21.08  $20.67  $20.13  $20.13  $22.55  $20.13 
Basic earnings (loss) per common share$1.79  $0.46  $0.43  $0.38  $0.21  $3.04  $(0.04)
Diluted earnings (loss) per common share (8)$1.77  $0.45  $0.42  $0.38  $0.20  $3.01  $(0.04)
Basic weighted average shares outstanding 36,607   37,134   37,330   37,618   41,326   37,169   41,737 
Diluted weighted average shares outstanding (8) 37,065   37,518   37,693   37,846   41,688   37,528   41,737 
Cash dividend declared per common share (9)$0.06  $—  $—  $—  $—  $0.06  $— 
                            


 Three Months Ended Years Ended December 31,
 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 2021  2020 
Other Financial and Operating Data (10)             
              
Profitability Indicators (%)             
Net interest income / Average total interest earning assets (NIM) (11)3.17% 2.94% 2.81% 2.66% 2.61% 2.90% 2.52%
Net income (loss) / Average total assets (ROA) (12)3.45% 0.90% 0.83% 0.76% 0.42% 1.50% (0.02)%
Net income (loss) / Average stockholders' equity (ROE) (13)32.04% 8.38% 8.11% 7.47% 4.09% 14.19% (0.21)%
Noninterest income / Total revenue (14)58.08% 20.59% 23.95% 22.94% 19.14% 37.03% 27.93%
              
Capital Indicators (%)             
Total capital ratio (15)14.56% 14.53% 14.17% 14.12% 13.96% 14.56% 13.96%
Tier 1 capital ratio (16)13.45% 13.28% 12.92% 12.87% 12.71% 13.45% 12.71%
Tier 1 leverage ratio (17)11.52% 11.18% 10.75% 10.54% 10.11% 11.52% 10.11%
Common equity tier 1 capital ratio (CET1) (18)12.50% 12.31% 11.95% 11.90% 11.73% 12.50% 11.73%
Tangible common equity ratio (19)10.63% 10.58% 10.35% 9.88% 9.83% 10.63% 9.83%
              
Asset Quality Indicators (%)             
Non-performing assets / Total assets (20)0.78% 1.24% 1.61% 1.16% 1.13% 0.78% 1.13%
Non-performing loans / Total loans (1) (21)0.89% 1.51% 2.16% 1.56% 1.50% 0.89% 1.50%
Allowance for loan losses / Total non-performing loans140.41% 100.84% 86.02% 123.92% 126.46% 140.41% 126.46%
Allowance for loan losses / Total loans held for investment (1)1.29% 1.59% 1.86% 1.93% 1.90% 1.29% 1.90%
Net charge-offs / Average total loans held for investment (22)0.52% 1.16% 0.12% —% 0.40% 0.44% 0.52%
              
Efficiency Indicators (% except FTE)             
Noninterest expense / Average total assets2.90% 2.55% 2.67% 2.28% 2.59% 2.63% 2.23%
Salaries and employee benefits / Average total assets1.65% 1.53% 1.61% 1.38% 1.62% 1.56% 1.39%
Other operating expenses/ Average total assets (23)1.25% 1.02% 1.06% 0.90% 0.97% 1.07% 0.84%
Efficiency ratio (24)41.40% 74.18% 77.80% 70.67% 85.81% 60.85% 67.95%
Full-Time-Equivalent Employees (FTEs) (25)763  733  719  731  713  763  713 


 Three Months Ended Years Ended December 31,
(in thousands, except percentages and per share amounts)December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020  2021   2020 
Core Selected Consolidated Results of Operations and Other Data (7)              
              
Pre-provision net revenue (PPNR)$79,141  $17,485  $15,397  $18,107  $8,538  $130,130  $84,286 
Core pre-provision net revenue (Core PPNR)$18,911  $18,297  $16,934  $15,765  $17,641  $69,907  $71,023 
Core net income (loss)$19,339  $17,669  $17,199  $12,589  $20,917  $66,796  $(6,991)
Core basic earnings (loss) per common share 0.53   0.48   0.46   0.33   0.50   1.80   (0.17)
Core earnings (loss) per diluted common share (8) 0.52   0.47   0.46   0.33   0.50   1.78   (0.17)
Core net income (loss) / Average total assets (Core ROA) (12) 1.02%  0.93%  0.9%  0.66%  1.05%  0.89% (0.09)%
Core net income (loss) / Average stockholders' equity (Core ROE) (13) 9.46%  8.69%  8.74%  6.50%  10.08%  8.39% (0.83)%
Core efficiency ratio (26) 74.98%  72.95%  74.45%  73.35%  71.02%  73.96%  70.14%


__________________
(1)Total gross loans include loans held for investment net of unamortized deferred loan origination fees and costs. In addition, at December 31, 2021, September 30, 2021 and March 31, 2021, total loans include $143.2 million, $219.1 million and $1.0 million, respectively, in loans held for sale carried at the lower of cost or estimated fair value. During the fourth quarter of 2021, the Company sold around [$49.4 million] in loans held for sale carried at the lower of cost or estimated fair value related to the NY portfolio. In Addition, as of December 31, 2021, September 30, 2021 and June 30, 2021, total loans include $14.9 million, $5.8 million and $1.8 million, respectively, in mortgage loans held for sale carried at fair value.
(2)Core deposits consist of total deposits excluding all time deposits.
(3)In the fourth quarter of 2021, the Company’s shareholders approved the Merger, previously announced by the Company, pursuant to which a subsidiary of the Company merged with and into the Company. Under the terms of the Merger, each outstanding share of Class B common stock was converted to 0.95 of a share of Class A common stock. In addition, any shareholder who owned fewer than 100 shares of Class A common stock upon completion of the Merger, received cash in lieu of Class A common stock. There were no authorized or outstanding Class B common stock at December 31, 2021. Furthermore, in connection with the Merger, the Company’s Board of Directors authorized a Class A common stock repurchase program (the “Class A Common Stock Repurchase Program”) which provides for the potential to repurchase up to $50 million of shares of Class A common stock. In the fourth quarter of 2021, the Company repurchased an aggregate of 1,175,119 shares of Class A common stock for an aggregate purchase price of $36.3 million, including $27.9 million repurchased under the Class A Common Stock Repurchase Program and $8.5 million shares cashed out in accordance with the terms of the Merger. The total weighted average market price of these transactions was $30.92 per share.
(4)On March 10, 2021, the Company’s Board of Directors approved a stock repurchase program which provided for the potential repurchase of up to $40 million of shares of the Company’s Class B common stock (the “ Class B Common Stock Repurchase Program”). In the third, second and first quarters of 2021, the Company repurchased an aggregate of 63,000, 386,195 and 116,037 shares of Class B common stock, respectively, at a weighted average price per share of $18.55, $16.62 and $15.98, respectively, under the Class B Common Stock Repurchase Program. In the third quarter of 2021, the Company’s Board of Directors terminated the Class B Common Stock Repurchase Program. In the fourth quarter of 2020, the Company completed a modified “Dutch auction” tender offer to purchase, for cash, up to $50.0 million of shares of its Class B common stock, and accepted to purchase 4,249,785 shares of Class B common stock in the tender offer at a price of $12.55 per share. The purchase price for this transaction was approximately $54.1 million, including $0.8 million in related fees and other expenses.
(5)Assets held for clients in an agency or fiduciary capacity which are not assets of the Company and therefore are not included in the consolidated financial statements.
(6)In the three months ended December 31, 2021, September 30, 2021 and June 30, 2021, and in the year ended December 31, 2021, net income exclude losses of $1.2 million, $0.6 million, $0.8 million and $2.6 million, respectively, attributable to a 49% minority interest of Amerant Mortgage LLC. We had no minority interest at any of the other periods shown.
(7)This presentation contains adjusted financial information determined by methods other than GAAP. This adjusted financial information is reconciled to GAAP in Exhibit 2 - Non-GAAP Financial Measures Reconciliation.
(8)In the three months ended December 31, 2021, September 30, 2021 and June 30, 2021 and in the year ended December 31, 2021, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance share units (restricted stock and restricted stock units for all of the other periods shown). For the year ended December 31, 2020, potential dilutive instruments were not included in the diluted earnings per share computation because the Company reported a net loss and their inclusion would have an antidilutive effect. For all other periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.
(9)In the fourth quarter of 2021, the Company’s Board of Directors declared a cash dividend of $0.06 per share of the Company’s common stock. The dividend was paid on or before January 15, 2022 to holders of record as of December 22, 2021. The aggregate amount in connection with this dividend is $2.2 million.
(10)Operating data for the periods presented have been annualized.
(11)NIM is defined as NII divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.
(12)Calculated based upon the average daily balance of total assets.
(13)Calculated based upon the average daily balance of stockholders’ equity.
(14)Total revenue is the result of net interest income before provision for loan losses plus noninterest income.
(15)Total stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.
(16)Tier 1 capital divided by total risk-weighted assets. Tier 1 capital is composed of Common Equity Tier 1 (CET1) capital plus outstanding qualifying trust preferred securities of $62.3 million at each of all the dates presented.
(17)Tier 1 capital divided by quarter to date average assets.
(18)CET1 capital divided by total risk-weighted assets.
(19)Tangible common equity is calculated as the ratio of common equity less goodwill and other intangibles divided by total assets less goodwill and other intangible assets. Other intangible assets consist of, among other things, mortgage servicing rights and are included in other assets in the Company’s consolidated balance sheets.
(20)Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans, restructured loans that are considered “troubled debt restructurings” or “TDRs”, and OREO properties acquired through or in lieu of foreclosure.
(21)Non-performing loans include all accruing loans past due by 90 days or more, all nonaccrual loans and restructured loans that are considered TDRs.
(22)Calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for loan losses. During the fourth, third and second quarters of 2021, and during the fourth quarter of 2020, there were net charge offs of $7.0 million, $15.7 million, $1.8 million and $5.9 million, respectively. In the first quarter of 2021, there were zero net charge offs. During the fourth quarter of 2021, the Company charged-off an aggregate of $4.2 million related to various commercial loans and $1.8 million related to one real estate loan. During the third quarters of 2021 and 2020, the Company charged-off $5.7 million and $19.3 million, respectively, against the allowance for loan losses as result of the deterioration of one commercial loan relationship.
(23)Other operating expenses is the result of total noninterest expense less salary and employee benefits.
(24)Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and NII.
(25)As of December 31, 2021, September 30, 2021 and June 30, 2021, includes 72, 52 and 38 FTEs for Amerant Mortgage LLC, respectively. In addition, effective January 1, 2022, there were 80 employees who are no longer working for the Company as a result of the new agreement with Fidelity National Information Services, Inc.(“FIS”).
(26)Core efficiency ratio is the efficiency ratio less the effect of restructuring costs and other adjustments, described in Exhibit 2 - Non-GAAP Financial Measures Reconciliation.
  

Exhibit 2- Non-GAAP Financial Measures Reconciliation

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

        

 Three Months Ended, Years Ended December 31,
(in thousands)December 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020  2021  2020 
         
         
Net income (loss) attributable to Amerant Bancorp Inc.$65,469 $17,031 $15,962 $14,459 $8,473  $112,921 $(1,722)
Plus: (reversal of) provision for loan losses (6,500) (5,000) (5,000) —  —   (16,500) 88,620 
Plus: provision for income tax expense (benefit)(1) 20,172  5,454  4,435  3,648  65   33,709  (2,612)
Pre-provision net revenue (PPNR) 79,141  17,485  15,397  18,107  8,538   130,130  84,286 
Plus: restructuring costs 1,895  758  4,164  240  8,407   7,057  11,925 
Less: non-routine noninterest income items (62,125) 54  (2,627) (2,582) 696   (67,280) (25,188)
Core pre-provision net revenue$18,911 $18,297 $16,934 $15,765 $17,641  $69,907 $71,023 
         
Total noninterest income$77,290 $13,434 $15,734 $14,163 $11,515  $120,621 $73,470 
Less: Non-routine noninterest income items:        
Less: gain on sale of Headquarters building (1) 62,387  —  —  —  —   62,387  — 
Loss on sale of the Beacon Operations Center (2) —  —  —  —  (1,729)  —  (1,729)
Securities (loss) gains, net (117) (54) 1,329  2,582  1,033   3,740  26,990 
Loss on early extinguishment of FHLB advances, net —  —  (2,488) —  —   (2,488) (73)
(Loss) gain on sale of loans (145) —  3,786  —  —   3,641  — 
Total non-routine noninterest income items$62,125 $(54)$2,627 $2,582 $(696) $67,280 $25,188 
Core noninterest income$15,165 $13,488 $13,107 $11,581 $12,211  $53,341 $48,282 
         
Total noninterest expenses$55,088 $48,404 $51,125 $43,625 $51,629  $198,242 $178,736 
Less: restructuring costs (3):        
Staff reduction costs (4) 26  250  3,322  6  5,345   3,604  6,405 
Legal and Consulting fees (5) 1,277  412  —  —  —   1,689  — 
Digital transformation expenses 50  96  32  234  658   412  3,116 
Lease impairment charge —  —  810  —  —   810  — 
Branch closure expenses (6) 542  —  —  —  2,404   542  2,404 
Total restructuring costs$1,895 $758 $4,164 $240 $8,407  $7,057 $11,925 
Core noninterest expenses $53,193 $47,646 $46,961 $43,385 $43,222  $191,185 $166,811 
         
         
         
(in thousands, except percentages and per share amounts)December 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020  2021  2020 
Net income (loss) attributable to Amerant Bancorp Inc.$65,469 $17,031 $15,962 $14,459 $8,473  $112,921 $(1,722)
Plus after-tax restructuring costs:        
Restructuring costs before income tax effect 1,895  758  4,164  240  8,407   7,057  11,925 
Income tax effect (7) (478) (229) (897) (48) (6,455)  (1,652) (7,187)
Total after-tax restructuring costs 1,417  529  3,267  192  1,952   5,405  4,738 
Less before-tax non-routine items in noninterest income: (62,125) 54  (2,627) (2,582) 696   (67,280) (25,188)
Income tax effect (7) 14,578  55  597  520  9,796   15,750  15,181 
Total after-tax non-routine items in noninterest income (47,547) 109  (2,030) (2,062) 10,492   (51,530) (10,007)
Core net income (loss) $19,339 $17,669 $17,199 $12,589 $20,917  $66,796 $(6,991)
         
Basic earnings (loss) per share$1.79 $0.46 $0.43 $0.38 $0.21  $3.04 $(0.04)
Plus: after tax impact of restructuring costs 0.04  0.02  0.09  0.01  0.04   0.15  0.11 
Less: after tax impact of non-routine items in noninterest income (1.30) —  (0.06) (0.06) 0.25   (1.39) (0.24)
Total core basic earnings (loss) per common share$0.53 $0.48 $0.46 $0.33 $0.50  $1.80 $(0.17)
         
Diluted earnings (loss) per share (8)$1.77 $0.45 $0.42 $0.38 $0.20  $3.01 $(0.04)
Plus: after tax impact of restructuring costs 0.04  0.02  0.09  0.01  0.05   0.14  0.11 
Less: after tax impact of non-routine items in noninterest income (1.29) —  (0.05) (0.06) 0.25   (1.37) (0.24)
Total core diluted earnings (loss) per common share$0.52 $0.47 $0.46 $0.33 $0.50  $1.78 $(0.17)
         
Net income (loss) / Average total assets (ROA) 3.45% 0.90% 0.83% 0.76% 0.42%  1.50%(0.02)%
Plus: after tax impact of restructuring costs 0.07% 0.02% 0.17% 0.01% 0.11%  0.07% 0.06%
Less: after tax impact of non-routine items in noninterest income(2.50)% 0.01%(0.10)%(0.11)% 0.52% (0.68)%(0.13)%
Core net income (loss) / Average total assets (Core ROA) 1.02% 0.93% 0.90% 0.66% 1.05%  0.89%(0.09)%
         
Net income (loss) / Average stockholders' equity (ROE) 32.04% 8.38% 8.11% 7.47% 4.09%  14.19%(0.21)%
Plus: after tax impact of restructuring costs 0.69% 0.26% 1.66% 0.10% 0.94%  0.68% 0.57%
Less: after tax impact of non-routine items in noninterest income(23.27)% 0.05%(1.03)%(1.07)% 5.05% (6.48)%(1.19)%
Core net income (loss) / Average stockholders' equity (Core ROE) 9.46% 8.69% 8.74% 6.50% 10.08%  8.39%(0.83)%
         
Efficiency ratio 41.40% 74.18% 77.81% 70.67% 85.81%  60.85% 67.95%
Less: impact of restructuring costs(1.43)%(1.16)%(6.34)%(0.39)%(13.97)% (2.16)%(4.51)%
Plus: impact of non-routine items in noninterest income 35.01%(0.07)% 2.98% 3.07%(0.82)%  15.27% 6.70%
Core efficiency ratio 74.98% 72.95% 74.45% 73.35% 71.02%  73.96% 70.14%


 Three Months Ended, Year Ended December 31,
(in thousands, except percentages and per share amounts)December 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020  2021  2020 
         
Stockholders' equity$831,873 $812,662 $799,068 $785,014 $783,421  $831,873 $783,421 
Less: goodwill and other intangibles (9) (22,528) (22,529) (22,505) (21,515) (21,561)  (22,528) (21,561)
Tangible common stockholders' equity$809,345 $790,133 $776,563 $763,499 $761,860  $809,345 $761,860 
Total assets 7,638,399  7,489,305  7,532,844  7,751,098  7,770,893   7,638,399  7,770,893 
Less: goodwill and other intangibles (9) (22,528) (22,529) (22,505) (21,515) (21,561)  (22,528) (21,561)
Tangible assets$7,615,871 $7,466,776 $7,510,339 $7,729,583 $7,749,332  $7,615,871 $7,749,332 
Common shares outstanding 35,883  37,487  37,563  37,922  37,843   35,883  37,843 
Tangible common equity ratio 10.63% 10.58% 10.34% 9.88% 9.83%  10.63% 9.83%
Stockholders' book value per common share$23.18 $21.68 $21.27 $20.70 $20.70  $23.18 $20.70 
Tangible stockholders' book value per common share$22.55 $21.08 $20.67 $20.13 $20.13  $22.55 $20.13 


____________
(1)The Company sold its Coral Gables headquarters for $135 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year term. The provision for income tax expense includes around $16.1 million related to this transaction in the three months and year ended December 31, 2021.
(2)The Company leased-back the property for a 2-year term.
(3)Expenses incurred for actions designed to implement the Company’s strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation of new technology system applications, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities.
(4)In the second quarter of 2021, includes expenses in connection with the departure of the Company’s Chief Operating Officer and the elimination of various other support function positions, including the NY LPO. In the fourth quarter of 2020, the Board of Directors of the Company adopted a voluntary early retirement plan for certain eligible long-term employees and an involuntary severance plan for certain other positions consistent with the Company’s effort to streamline operations and better align its operating structure with its business activities. 31 employees elected to participate in the voluntary plan, all of whom retired on or before December 31, 2020. The involuntary plan impacted 31 employees most of whom no longer worked for the Company and/or its subsidiaries by December 31, 2020. On December 28, 2020, the Company determined the termination costs and annual savings related to the voluntary and involuntary plans. The Company incurred approximately $3.5 million and $1.8 million in one-time termination costs in the fourth quarter of 2020 in connection with the voluntary and involuntary plans, respectively, the majority of which were paid over time in the form of installment payments until December 2021. The Company estimates that the voluntary and involuntary plans will yield estimated annual savings of approximately $4.2 million and $5.5 million, respectively, for combined estimated annual savings of approximately $9.7 million which began in 2021.
(5)Consist of: (i) expenses in connection with the Merger and related transactions, and (ii) $0.5 million, $0.2 million, and $0.7 million, in the three months ended December 31, 2021, September 30, 2021, and in the year ended December 31, 2021, respectively, related to the new agreement with FIS.
(6)Expenses related to the lease termination of a branch in Fort Lauderdale, Florida in 2021, and the closures of one branch in Fort Lauderdale, Florida and another branch in Houston, Texas in 2020.
(7)In 2021 and 2020, and in the three months ended March 31, 2021, amounts were calculated based upon the effective tax rate for the periods of 23.41%, 60.27% and 20.15%, respectively. For all of the other periods shown, amounts represent the difference between the prior and current period year-to-date tax effect.
(8)In the three months ended December 31, 2021, September 30, 2021 and June 30, 2021 and in the year ended December 31, 2021, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance share units (restricted stock and restricted stock units for all of the other periods shown). For the year ended December 31, 2020, potential dilutive instruments were not included in the diluted earnings per share computation because the Company reported a net loss and their inclusion would have an antidilutive effect. For all other periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.
(9)Other intangible assets consist of, among other things, mortgage servicing rights of $0.6 million, $0.6 million and $0.5 million at December 31, 2021, September 30, 2021 and June 30 2021, respectively, and are included in other assets in the Company’s consolidated balance sheets.
  

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

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

 Three Months Ended
 December 31, 2021 September 30, 2021 December 31, 2020
(in thousands, except percentages) Average
Balances		Income/
Expense		Yield/
Rates		 Average BalancesIncome/ ExpenseYield/ Rates Average
Balances		Income/
Expense		Yield/
Rates
Interest-earning assets:           
Loan portfolio, net (1)(2)$5,475,207 $56,521 4.10% $5,379,461 $53,193 3.92% $5,809,246 $54,891 3.76%
Debt securities available for sale (3) 1,171,691  7,010 2.37%  1,221,569  7,055 2.29%  1,274,493  7,126 2.22%
Debt securities held to maturity (4) 121,842  745 2.43%  102,574  508 1.96%  60,084  311 2.06%
Debt securities held for trading 143  1 2.77%  153  1 2.59%  —  — —%
Equity securities with readily determinable fair value not held for trading 17,138  59 1.37%  24,017  66 1.09%  24,354  96 1.57%
Federal Reserve Bank and FHLB stock 49,591  535 4.28%  47,682  514 4.28%  65,426  677 4.12%
Deposits with banks 155,479  58 0.15%  207,504  76 0.15%  195,347  54 0.11%
Total interest-earning assets 6,991,091  64,929 3.68%  6,982,960  61,413 3.49%  7,428,950  63,155 3.38%
Total non-interest-earning assets less allowance for loan losses 537,549     553,505     516,346   
Total assets$7,528,640    $7,536,465    $7,945,296   


 Three Months Ended
 December 31, 2021 September 30, 2021 December 31, 2020
(in thousands, except percentages) Average
Balances		Income/
Expense		Yield/
Rates		 Average BalancesIncome/ ExpenseYield/ Rates Average
Balances		Income/
Expense		Yield/
Rates
Interest-bearing liabilities:           
Checking and saving accounts -           
Interest bearing DDA$1,342,416 $208 0.06% $1,290,944 $147 0.05% $1,218,536 $103 0.03%
Money market 1,337,529  788 0.23%  1,359,774  798 0.23%  1,257,239  1,001 0.32%
Savings 327,090  11 0.01%  329,456  11 0.01%  322,077  14 0.02%
Total checking and saving accounts 3,007,035  1,007 0.13%  2,980,174  956 0.13%  2,797,852  1,118 0.16%
Time deposits 1,380,337  4,777 1.37%  1,555,001  5,302 1.35%  2,131,085  9,001 1.68%
Total deposits 4,387,372  5,784 0.52%  4,535,175  6,258 0.55%  4,928,937  10,119 0.82%
Securities sold under agreements to repurchase 55  — —%  —  — —%  533  1 0.75%
Advances from the FHLB and other borrowings (5) 863,137  1,805 0.83%  808,860  1,777 0.87%  1,060,217  2,826 1.06%
Senior notes 58,855  942 6.35%  58,776  942 6.36%  58,539  942 6.40%
Junior subordinated debentures 64,178  618 3.82%  64,178  615 3.80%  64,178  615 3.81%
Total interest-bearing liabilities 5,373,597  9,149 0.68%  5,466,989  9,592 0.70%  6,112,404  14,503 0.94%
Non-interest-bearing liabilities:           
Non-interest bearing demand deposits 1,210,365     1,110,353     902,799   
Accounts payable, accrued liabilities and other liabilities 133,927     152,528     105,160   
Total non-interest-bearing liabilities 1,344,292     1,262,881     1,007,959   
Total liabilities 6,717,889     6,729,870     7,120,363   
Stockholders’ equity 810,751     806,595     824,933   
Total liabilities and stockholders' equity$7,528,640    $7,536,465    $7,945,296   
Excess of average interest-earning assets over average interest-bearing liabilities$1,617,494    $1,515,971    $1,316,546   
Net interest income $55,780    $51,821    $48,652  
Net interest rate spread  3.00%   2.79%   2.44%
Net interest margin (6)  3.17%   2.94%   2.61%
Cost of total deposits (7)  0.41%   0.44%   0.69%
Ratio of average interest-earning assets to average interest-bearing liabilities 130.10%    127.73%    121.54%  
Average non-performing loans/ Average total loans 1.13%    1.94%    1.55%  


 Year Ended December 31,
  2021   2020 
(in thousands, except percentages) Average
Balances		Income/
Expense		Yield/
Rates		 Average BalancesIncome/ ExpenseYield/ Rates
Interest-earning assets:       
Loan portfolio, net (1)(2)$5,514,110 $216,097 3.92% $5,716,371 $220,898 3.86%
Debt securities available for sale (3) 1,194,505  26,953 2.26%  1,444,213  34,001 2.35%
Debt securities held to maturity (4) 97,501  2,036 2.09%  66,136  1,343 2.03%
Debt securities held for trading 165  5 3.03%  —  — —%
Equity securities with readily determinable fair value not held for trading 22,332  284 1.27%  24,290  452 1.86%
Federal Reserve Bank and FHLB stock 53,106  2,222 4.18%  67,840  3,227 4.76%
Deposits with banks 201,950  247 0.12%  202,026  633 0.31%
Total interest-earning assets 7,083,669  247,844 3.50%  7,520,876  260,554 3.46%
Total non-interest-earning assets less allowance for loan losses 449,347     510,673   
Total assets$7,533,016    $8,031,549   
        
Interest-bearing liabilities:       
Checking and saving accounts -       
Interest bearing DDA$1,309,699 $591 0.05% $1,154,166 $439 0.04%
Money market 1,311,278  3,483 0.27%  1,165,447  7,070 0.61%
Savings 324,618  50 0.02%  321,766  58 0.02%
Total checking and saving accounts 2,945,595  4,124 0.14%  2,641,379  7,567 0.29%
Time deposits 1,668,459  23,766 1.42%  2,360,367  45,765 1.94%
Total deposits 4,614,054  27,890 0.60%  5,001,746  53,332 1.07%
Securities sold under agreements to repurchase 123  1 0.81%  252  1 0.40%
Advances from the FHLB and other borrowings (5) 822,769  8,595 1.04%  1,116,899  13,168 1.18%
Senior notes 58,737  3,768 6.42%  30,686  1,968 6.41%
Junior subordinated debentures 64,178  2,449 3.82%  66,402  2,533 3.81%
Total interest-bearing liabilities 5,559,861  42,703 0.77%  6,215,985  71,002 1.14%
Non-interest-bearing liabilities:       
Non-interest bearing demand deposits 1,046,766     876,393   
Accounts payable, accrued liabilities and other liabilities 130,548     100,932   
Total non-interest-bearing liabilities 1,177,314     977,325   
Total liabilities 6,737,175     7,193,310   
Stockholders’ equity 795,841     838,239   
Total liabilities and stockholders' equity$7,533,016    $8,031,549   
Excess of average interest-earning assets over average interest-bearing liabilities$1,523,808    $1,304,891   
Net interest income $205,141    $189,552  
Net interest rate spread  2.73%   2.32%
Net interest margin (6)  2.90%   2.52%
Cost of total deposits (7)  0.49%   0.91%
Ratio of average interest-earning assets to average interest-bearing liabilities 127.41%    120.99%  
Average non-performing loans/ Average total loans 1.61%    1.12%  


_______________
(1)Includes loans held for investment net of the allowance for loan losses and loans held for sale. The average balance of the allowance for loan losses was $82.1 million, $100.7 million, and $115.4 million in the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $101.1 million and $91.5 million in the years ended December 31, 2021 and 2020, respectively. The average balance of total loans held for sale was $206.8 million, $81.2 million, and $52 thousand in the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $72.7 million and $37 thousand in the years ended December 31, 2021 and 2020, respectively.
(2)Includes average non-performing loans of $63.0 million, $106.5 million and $91.7 million for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $90.6 million and $64.8 million for the years ended December 31, 2021 and 2020, respectively. Interest income that would have been recognized on these non-performing loans totaled $2.2 million, $2.3 million and $0.7 million, in the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $6.2 million and $2.7 million in the years ended December 31, 2021 and 2020, respectively.
(3)Includes nontaxable securities with average balances of $17.7 million, $19.5 million and $75.8 million for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $46.2 million and $72.2 million in the year ended December 31, 2021 and 2020, respectively. The tax equivalent yield for these nontaxable securities was 1.79%, 1.51% and 0.37% for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and 1.76% and 2.94% for the years ended December 31, 2021 and 2020, respectively. In 2021 and 2020, the tax equivalent yields were calculated by assuming a 21% tax rate and dividing the actual yield by 0.79.
(4)Includes nontaxable securities with average balances of $96.4 million, $65.1 million and $60.1 million for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $67.7 million and $66.1 million in the years ended December 31, 2021 and 2020, respectively. The tax equivalent yield for these nontaxable securities was 3.20%, 2.37% and 2.61% for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and 2.37% and 2.57% for the years ended December 31, 2021 and 2020, respectively. In 2021 and 2020, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.
(5)The terms of the FHLB advance agreements require the Bank to maintain certain investment securities or loans as collateral for these advances.
(6)NIM is defined as net interest income divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.
(7)Calculated based upon the average balance of total noninterest bearing and interest bearing deposits.
  

Exhibit 4 - Noninterest Income

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

 Three Months Ended  Year Ended December 31,
 December 31, 2021 September 30, 2021 December 31, 2020  2021   2020 
(in thousands, except percentages)Amount %  Amount %  Amount% Amount% Amount%
        
Deposits and service fees$4,521 5.9% $4,303 32.0% $4,17336.2% $17,214 14.3% $15,838 21.6%
Brokerage, advisory and fiduciary activities 4,987 6.5%  4,595 34.2%  4,21936.6%  18,616 15.4%  16,949 23.1%
Change in cash surrender value of bank owned life insurance (“BOLI”)(1) 1,366 1.8%  1,369 10.2%  1,41712.3%  5,459 4.5%  5,695 7.8%
Cards and trade finance servicing fees 503 0.7%  541 4.0%  3332.9%  1,771 1.5%  1,346 1.8%
Loss on early extinguishment of FHLB advances, net — —%  — —%  ——%  (2,488)(2.1)%  (73)(0.1)%
Gain on sale of Headquarters Building (2) 62,387 80.7%  — —%  ——%  62,387 51.7%  — —%
Securities (losses) gains, net (3) (117)(0.2)%  (54)(0.4)%  1,0339.0%  3,740 3.1%  26,990 36.7%
Other noninterest income (4) 3,643 4.6%  2,680 20.0%  3403.0%  13,922 11.5%  6,725 9.1%
Total noninterest income$77,290 100.0% $13,434 100.0% $11,515100.0% $120,621 99.9% $73,470 100.0%


__________________
(1)Changes in cash surrender value of BOLI are not taxable.
(2)The Company sold its Coral Gables headquarters for $135 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year term.
(3)Includes net gain on sale of debt securities of $37.0 thousand, $36.0 thousand and $1.1 million during the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively. In addition, includes a realized loss of $42 thousand on the sale of a mutual fund with a fair value of $23.4 million at the time of the sale, and unrealized losses of $0.1 million during each of the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, related to the change in market value of mutual funds.
(4)Includes: (i) mortgage banking revenue related to Amerant Mortgage of $0.9 million, $0.7 million and $1.7 million in the three months ended December 31, 2021, September 30, 2021, and in the year ended December 31, 2021, respectively; (ii) income from derivative transactions with customers of $2.0 million, $0.5 million and $0.7 million in the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $4.0 million and $3.2 million in the years ended December 31, 2021 and 2020, respectively, and (iii) a gain of $3.8 million on the sale of PPP loans in the year ended December 31, 2021. Other sources of income in the periods shown include: rental income, income from foreign currency exchange transactions with customers, and valuation income on the investment balances held in the non-qualified deferred compensation plan.
  

Exhibit 5 - Noninterest Expense

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

 Three Months Ended Year Ended December 31,
 December 31, 2021 September 30, 2021 December 31, 2020  2021   2020 
(in thousands, except percentages)Amount %  Amount %  Amount %  Amount% Amount%
        
Salaries and employee benefits (1)$31,30956.8% $29,05360.0% $32,30562.6% $117,58559.3% $111,46962.4%
Occupancy and equipment (2) 5,76510.5%  4,7699.9%  5,32010.3%  20,36410.3%  17,6249.9%
Professional and other services fees (3) 7,25013.2%  4,1848.6%  3,1376.1%  19,91110.0%  13,4597.5%
Telecommunications and data processing 3,8977.1%  3,8107.9%  3,0826.0%  14,9497.5%  12,9317.2%
Depreciation and amortization (4) 1,5202.8%  2,0914.3%  3,4736.7%  7,2693.7%  9,3855.3%
FDIC assessments and insurance 1,3402.4%  1,6263.4%  1,8853.7%  6,4233.2%  6,1413.4%
Other operating expenses (5) 4,0077.2%  2,8715.9%  2,4274.7%  11,7416.0%  7,7274.3%
Total noninterest expense (6)$55,088100.0% $48,404100.0% $51,629100.0% $198,242100.0% $178,736100.0%


___________
(1)Includes severance expense of $0.3 million and $5.3 million, in the three months ended September 30, 2021 and December 31, 2020, respectively, and $3.6 million and $6.4 million in the years ended December 31, 2020 and 2021, respectively. There were no significant severance expenses in the three months ended December 31, 2021. Severance expenses in 2021 were mainly in connection with the departure of the Company’s COO, the elimination of various support function positions, and other actions. Severance expenses in 2020 were primarily related to the voluntary early retirement plan and the involuntary severance plan adopted in the fourth quarter of 2020. In addition, includes $1.0 million, $0.8 million and $3.4 million in the three months ended December 31, 2021 and September 30, 2021, and in the year ended December 31, 2021, respectively, in connection with a Long Term Incentive Compensation Program adopted in the first quarter of 2021.
(2)In the three months ended December 31, 2021 and 2020, includes $0.5 million and $1.1 million, respectively, related to the lease termination of a branch in Fort Lauderdale, Florida in 2021, and the closures of one branch in Fort Lauderdale, Florida and another branch in Houston, Texas in 2020.. In addition, includes $0.8 million of ROU asset impairment associated with the lease in NY loan production office in the year ended December 31, 2021.
(3)In the three months ended December 31, 2021 and September 30, 2021, and in the year ended December 31, 2021, includes additional expenses of $1.3 million, $0.4 million, and $1.7 million, respectively, mainly associated with: (i) the Merger and related transactions, and (ii) $0.5 million, $0.2 million, and $0.7 million, in the three months ended December 31, 2021, September 30, 2021, and in the year ended December 31, 2021, respectively, related to the new consulting agreement with FIS. In addition, other services fees include expenses on derivative contracts in all the periods shown.
(4)Includes: (i) a reduction of around $0.4 million in connection with the sale of the Company’s headquarters building in the three months ended December 31, 2021, and (ii) a charge of $1.3 million for the accelerated amortization of leasehold improvements in connection with the closure of one of our branches in the three months ended December 31, 2020.
(5)Includes advertising, marketing, charitable contributions, community engagement, postage and courier expenses, provisions for possible losses on contingent loans, and debits which mirror the valuation income on the investment balances held in the non-qualified deferred compensation plan in order to adjust the liability to participants of the deferred compensation plan.
(6)Includes $3.3 million and $7.1 million in the three months and the year ended December 31, 2021, respectively and $2.3 million in the three months ended September 30, 2021, respectively, related to Amerant Mortgage, primarily salaries and employee benefits, mortgage lending costs and professional and other services fees.
  

Exhibit 6 - Consolidated Balance Sheets

(in thousands, except share data)December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020
Assets         
Cash and due from banks$33,668  $27,501  $45,198  $37,744 $30,179
Interest earning deposits with banks 240,540   138,732   126,314   195,755  184,207
Cash and cash equivalents 274,208   166,233   171,512   233,499  214,386
Securities         
Debt securities available for sale 1,175,319   1,220,391   1,194,068   1,190,201  1,225,083
Debt securities held to maturity 118,175   130,543   93,311   104,657  58,127
Trading securities —   194   198   —  —
Equity securities with readily determinable fair value not held for trading 252   23,870   23,988   23,965  24,342
Federal Reserve Bank and Federal Home Loan Bank stock 47,495   47,740   47,675   56,469  65,015
Securities 1,341,241   1,422,738   1,359,240   1,375,292  1,372,567
Loans held for sale, at lower of cost or fair value 143,195   219,083   —   —  —
Mortgage loans held for sale, at fair value 14,905   5,812   1,775   1,044  —
Loans held for investment, gross 5,409,440   5,254,029   5,606,773   5,753,794  5,842,337
Less: Allowance for loan losses 69,899   83,442   104,185   110,940  110,902
Loans held for investment, net 5,339,541   5,170,587   5,502,588   5,642,854  5,731,435
Bank owned life insurance 223,006   221,640   220,271   218,903  217,547
Premises and equipment, net (1) 37,860   108,885   108,708   109,071  109,990
Deferred tax assets, net 11,301   9,861   13,516   15,607  11,691
Goodwill 19,506   19,506   19,506   19,506  19,506
Accrued interest receivable and other assets (1)(2) 233,636   144,960   135,728   135,322  93,771
Total assets$7,638,399  $7,489,305  $7,532,844  $7,751,098 $7,770,893
Liabilities and Stockholders' Equity         
Deposits         
Demand         
Noninterest bearing$1,183,251  $1,210,154  $1,065,622  $977,595 $872,151
Interest bearing 1,507,441   1,317,938   1,293,626   1,324,127  1,230,054
Savings and money market 1,602,339   1,655,495   1,682,619   1,494,227  1,587,876
Time 1,337,840   1,442,790   1,633,041   1,882,130  2,041,562
Total deposits 5,630,871   5,626,377   5,674,908   5,678,079  5,731,643
Advances from the Federal Home Loan Bank 809,577   809,095   808,614   1,050,000  1,050,000
Senior notes 58,894   58,815   58,736   58,656  58,577
Junior subordinated debentures held by trust subsidiaries 64,178   64,178   64,178   64,178  64,178
Accounts payable, accrued liabilities and other liabilities (1) 243,006   118,178   127,340   115,171  83,074
Total liabilities 6,806,526   6,676,643   6,733,776   6,966,084  6,987,472
          
Stockholders’ equity         
Class A common stock 3,589   2,903   2,904   2,904  2,882
Class B common stock —   847   853   892  904
Additional paid in capital 262,510   299,273   299,547   304,448  305,569
Retained earnings 553,167   489,854   472,823   456,861  442,402
Accumulated other comprehensive income 15,217   21,236   23,758   19,909  31,664
Total stockholders' equity before noncontrolling interest 834,483   814,113   799,885   785,014  783,421
Noncontrolling interest (2,610)  (1,451)  (817)  —  —
Total stockholders' equity 831,873   812,662   799,068   785,014  783,421
Total liabilities and stockholders' equity$7,638,399  $7,489,305  $7,532,844  $7,751,098 $7,770,893
          


__________
(1)As of December 31, 2021, includes the effect of the sale and lease back of the Company’s headquarters building in the fourth quarter of 2021.
(2)As of December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, includes the effect of adopting ASU 2016-02 (Leases) in the first quarter of 2021.
  

Exhibit 7 - Loans
Loans by Type - Held For Investment

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

(in thousands)December 31,
2021		 September 30,
2021		 June 30,
2021		 March 31,
2021		 December 31,
2020
Real estate loans         
Commercial real estate         
Non-owner occupied$1,540,590 $1,593,664 $1,699,876 $1,713,967 $1,749,839
Multi-family residential 514,679  504,337  658,022  722,783  737,696
Land development and construction loans 327,246  318,449  361,077  351,502  349,800
  2,382,515  2,416,450  2,718,975  2,788,252  2,837,335
Single-family residential 661,339  618,139  616,545  625,298  639,569
Owner occupied 962,538  936,590  943,342  940,126  947,127
  4,006,392  3,971,179  4,278,862  4,353,676  4,424,031
Commercial loans 965,673  910,696  1,003,411  1,104,594  1,154,550
Loans to financial institutions and acceptances 13,710  13,690  13,672  16,658  16,636
Consumer loans and overdrafts 423,665  358,464  310,828  278,866  247,120
Total loans$5,409,440 $5,254,029 $5,606,773 $5,753,794 $5,842,337

Loans by Type - Held For Sale

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

(in thousands)December 31,
2021		 September 30,
2021		 June 30,
2021		 March 31,
2021		 December 31,
2020
Real estate loans         
Commercial real estate         
Non-owner occupied$110,271 $160,034 $— $— $—
Multi-family residential 31,606  57,725  —  —  —
  141,877  217,759  —  —  —
Single-family residential (1) 14,905  5,812  1,775  1,044  —
Owner occupied 1,318  1,324  —  —  —
Total loans held for sale (2)(3)$158,100 $224,895 $1,775 $1,044 $—


__________________
(1)Loans held for sale in connection with Amerant Mortgage ongoing business.
(2)At December 31, 2021, September 30, 2021 and March 31, 2021, total loans include $143.2 million, $219.1 million and $1.0 million, respectively, in loans held for sale carried at the lower of cost or estimated fair value. During the three months ended December 31, 2021, the Company sold $49.4 million in loans held for sale carried at the lower of cost or estimated fair value related to the NY portfolio. In addition, as of December 31, 2021, September 30, 2021 and June 30, 2021, total loans include $14.9 million, $5.8 million and $1.8 million, respectively, in mortgage loans held for sale carried at fair value.
(3)Remained current and in accrual status at each of the periods shown.
  

Non-Performing Assets

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

(in thousands)December 31,
2021		 September 30,
2021		 June 30,
2021		 March 31,
2021		 December 31,
2020
Non-Accrual Loans(1)         
Real Estate Loans         
Commercial real estate (CRE)         
Non-owner occupied$7,285 $28,507 $48,347 $8,515 $8,219
Multi-family residential —  —  9,928  11,369  11,340
  7,285  28,507  58,275  19,884  19,559
Single-family residential 5,126  6,344  7,174  10,814  10,667
Owner occupied 8,665  11,040  11,277  12,527  12,815
  21,076  45,891  76,726  43,225  43,041
Commercial loans (2) 28,440  36,500  43,876  45,282  44,205
Consumer loans and overdrafts 257  353  198  270  233
Total Non-Accrual Loans$49,773 $82,744 $120,800 $88,777 $87,479
          
Past Due Accruing Loans(3)         
Real Estate Loans         
Commercial real estate (CRE)         
Non-owner occupied$— $— $— $743 $—
Single-family residential —  4  20  —  —
Owner occupied —  —  —  —  220
Commercial —  —  295  —  —
Consumer loans and overdrafts 8  1  4  3  1
Total Past Due Accruing Loans 8  5  319  746  221
Total Non-Performing Loans 49,781  82,749  121,119  89,523  87,700
Other Real Estate Owned 9,720  9,800  400  400  427
Total Non-Performing Assets$59,501 $92,549 $121,519 $89,923 $88,127


__________________
(1)Includes loan modifications that met the definition of TDRs which may be performing in accordance with their modified loan terms. As of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, non-performing TDRs include $9.1 million, $9.3 million, $9.6 million, $9.8 million and $8.4 million, respectively, in a multiple loan relationship to a South Florida borrower.
(2)As of December 31, 2021 and September 30, 2021, includes $9.1 million and $13.9 million, respectively in a commercial relationship placed in nonaccrual status during the second quarter of 2020 ($19.6 million at each of the other periods shown). During the third quarters of 2021 and 2020, the Company charged off $5.7 million and $19.3 million, respectively, against the allowance for loan losses as result of the deterioration of this commercial relationship. In addition, in connection with this loan relationship, the Company collected a partial principal payment of $4.8 million in the fourth quarter of 2021.
(3)Loans past due 90 days or more but still accruing.
  

Loans by Credit Quality Indicators

This table shows the Company’s loans by credit quality indicators. We have no purchased credit-impaired loans.

 December 31, 2021 September 30, 2021 December 31, 2020
(in thousands)Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1)
Real Estate Loans              
Commercial Real
Estate (CRE)		              
Non-owner         
occupied		$34,205$5,890$1,395$41,490 $31,269$25,332$3,175$59,776 $46,872$4,994$3,969$55,835
Multi-family residential — — — —  — — — —  — 11,340 — 11,340
Land development         
and         
construction        
loans		 — — — —  — — — —  7,164 — — 7,164
  34,205 5,890 1,395 41,490  31,269 25,332 3,175 59,776  54,036 16,334 3,969 74,339
Single-family residential — 5,221 — 5,221  — 6,368 — 6,368  — 10,667 — 10,667
Owner occupied 7,429 8,759 — 16,188  7,473 11,136 — 18,609  22,343 12,917 — 35,260
  41,634 19,870 1,395 62,899  38,742 42,836 3,175 84,753  76,379 39,918 3,969 120,266
Commercial loans (2) 32,452 20,324 9,497 62,273  38,522 22,471 15,404 76,397  42,434 21,152 23,256 86,842
Consumer loans and         
overdrafts		 — 270 — 270  — 356 — 356  — 238 — 238
 $74,086$40,464$10,892$125,442 $77,264$65,663$18,579$161,506 $118,813$61,308$27,225$207,346
               


__________
(1)There were no loans categorized as “Loss” as of the dates presented.
(2)Loan balances as of December 31, 2021 and September 30, 2021 include $9.1 million and $13.9 million, respectively, in a commercial relationship placed in nonaccrual status and downgraded during the second quarter of 2020 ($19.6 million at December 31, 2020). As of December 31, 2021 and September 30, 2021, Substandard loans include $4.9 million and $7.3 million, respectively and doubtful loans include $4.2 million and $6.6 million, respectively, related to this commercial relationship (Substandard loans include $7.3 million and doubtful loans include $12.3 million at December 31, 2020). During the third quarters of 2021 and 2020, the Company charged off $5.7 million and $19.3 million, respectively, against the allowance for loan losses as result of the deterioration of this commercial relationship. In addition, in connection with this loan relationship, the Company collected a partial principal payment of $4.8 million in the fourth quarter of 2021.
  

Exhibit 8 - Deposits by Country of Domicile

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

(in thousands)December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020
  
Domestic$3,137,258 $3,090,563 $3,140,541 $3,175,522 $3,202,936
Foreign:         
Venezuela 2,019,480  2,054,149  2,075,658  2,088,519  2,119,412
Others 474,133  481,665  458,709  414,038  409,295
Total foreign 2,493,613  2,535,814  2,534,367  2,502,557  2,528,707
Total deposits$5,630,871 $5,626,377 $5,674,908 $5,678,079 $5,731,643


   
  CONTACTS:
  Investors
  Laura Rossi
  InvestorRelations@amerantbank.com
  (305) 460-8728
   
  Media
  Silvia M. Larrieu
  MediaRelations@amerantbank.com
  (305) 441-8414

FAQ

What were Amerant Bancorp's earnings for Q4 2021?

Amerant Bancorp reported net income of $65.5 million or $1.77 per diluted share for Q4 2021.

How did Amerant Bancorp's net interest margin change in Q4 2021?

The net interest margin increased to 3.17% in Q4 2021, up 23 basis points from the previous quarter.

What does the loan growth figure mean for AMTB and AMTBB?

Amerant Bancorp experienced a loan growth of $88.6 million or 1.62% in Q4 2021, indicating a positive trend despite challenges.

What were the non-performing loan metrics for Amerant Bancorp?

Non-performing loans decreased to 0.89% of total loans as of Q4 2021, improving credit quality.

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Amerant Bancorp Inc.

NYSE:AMTB

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AMTB Latest News

Dec 3, 2024
AMERANT BANK PARTNERS WITH SEDANO’S SUPERMARKETS, LAUNCHES COMMUNITY-DRIVEN CAMPAIGN TO BENEFIT CENTRO MATER
Nov 18, 2024
AMERANT BANK ANNOUNCES HIRE OF BRADEN R. SMITH AS SENIOR EXECUTIVE VICE PRESIDENT, CHIEF BUSINESS DEVELOPMENT OFFICER AND PROMOTION OF SHARYMAR CALDERON TO SENIOR EXECUTIVE VICE PRESIDENT
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

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