Amerant Reports Third Quarter 2024 Results
Amerant Bancorp (NYSE: AMTB) reported a net loss of $48.2 million ($1.43 per diluted share) in Q3 2024, compared to net income of $5.0 million in Q2 2024. The company completed a public offering raising $165 million gross proceeds, selling 8.68 million shares at $19.00 per share. Following this, Amerant executed an investment portfolio repositioning, selling $551 million in securities resulting in a $68.5 million pre-tax loss. Total assets reached $10.4 billion, with gross loans at $7.56 billion and deposits at $8.11 billion. The Board declared a quarterly cash dividend of $0.09 per share.
Amerant Bancorp (NYSE: AMTB) ha riportato una perdita netta di 48,2 milioni di dollari (1,43 dollari per azione diluita) nel terzo trimestre del 2024, rispetto a un utile netto di 5,0 milioni di dollari nel secondo trimestre del 2024. L'azienda ha completato un'offerta pubblica raccogliendo proventi lordi di 165 milioni di dollari, vendendo 8,68 milioni di azioni a 19,00 dollari per azione. Successivamente, Amerant ha eseguito un riposizionamento del portafoglio investimenti, vendendo 551 milioni di dollari in titoli, il che ha comportato una perdita ante imposte di 68,5 milioni di dollari. Gli attivi totali hanno raggiunto i 10,4 miliardi di dollari, con prestiti lordi pari a 7,56 miliardi di dollari e depositi a 8,11 miliardi di dollari. Il Consiglio di amministrazione ha dichiarato un dividendo in contante trimestrale di 0,09 dollari per azione.
Amerant Bancorp (NYSE: AMTB) reportó una pérdida neta de 48.2 millones de dólares (1.43 dólares por acción diluida) en el tercer trimestre de 2024, en comparación con una ganancia neta de 5.0 millones de dólares en el segundo trimestre de 2024. La compañía completó una oferta pública recaudando 165 millones de dólares en ingresos brutos, vendiendo 8.68 millones de acciones a 19.00 dólares por acción. Después de esto, Amerant ejecutó un reposicionamiento de su cartera de inversiones, vendiendo 551 millones de dólares en valores, lo que resultó en una pérdida antes de impuestos de 68.5 millones de dólares. Los activos totales alcanzaron los 10.4 mil millones de dólares, con préstamos brutos de 7.56 mil millones de dólares y depósitos de 8.11 mil millones de dólares. La Junta declaró un dividendo en efectivo trimestral de 0.09 dólares por acción.
아메란트 뱅코프 (NYSE: AMTB)는 2024년 3분기에 4,820만 달러(희석 주당 1.43달러)의 순손실을 기록했으며, 이는 2024년 2분기의 500만 달러 순익과 비교됩니다. 이 회사는 1억 6,500만 달러의 총 수익을 올리는 공모를 완료했으며, 186만 주를 주당 19.00달러에 판매하였습니다. 이후 아메란트는 5억 5,100만 달러의 유가증권을 판매하여 6,850만 달러의 세전 손실을 입으면서 투자 포트폴리오를 재구성했습니다. 총 자산은 1,040억 달러에 도달했으며, 총 대출은 756억 달러, 예금액은 811억 달러에 달합니다. 이사회는 주당 0.09달러의 분기 현금 배당금을 선언하였습니다.
Amerant Bancorp (NYSE: AMTB) a annoncé une perte nette de 48,2 millions de dollars (1,43 dollar par action diluée) au troisième trimestre 2024, comparé à un bénéfice net de 5,0 millions de dollars au deuxième trimestre 2024. La société a réalisé une offre publique qui a permis de lever un produit brut de 165 millions de dollars, en vendant 8,68 millions d'actions à 19,00 dollars l'action. Suite à cela, Amerant a exécuté un repositionnement de son portefeuille d'investissement, vendant pour 551 millions de dollars de titres entraînant une perte avant impôts de 68,5 millions de dollars. Les actifs totaux ont atteint 10,4 milliards de dollars, avec des prêts bruts s'élevant à 7,56 milliards de dollars et des dépôts à 8,11 milliards de dollars. Le Conseil d'administration a déclaré un dividende en espèces trimestriel de 0,09 dollar par action.
Amerant Bancorp (NYSE: AMTB) meldete im dritten Quartal 2024 einen Nettoverlust von 48,2 Millionen Dollar (1,43 Dollar pro verwässerter Aktie), verglichen mit einem Nettogewinn von 5,0 Millionen Dollar im zweiten Quartal 2024. Das Unternehmen schloss eine öffentliche Aktienausgabe ab und erzielte einen Bruttoerlös von 165 Millionen Dollar, indem es 8,68 Millionen Aktien zu einem Preis von 19,00 Dollar pro Aktie verkaufte. Danach führte Amerant eine Neupositionierung seines Anlageportfolios durch und verkaufte Wertpapiere im Wert von 551 Millionen Dollar, was zu einem steuerpflichtigen Verlust von 68,5 Millionen Dollar führte. Die Gesamtaktiva beliefen sich auf 10,4 Milliarden Dollar, wobei die Bruttokredite bei 7,56 Milliarden Dollar und die Einlagen bei 8,11 Milliarden Dollar lagen. Der Vorstand erklärte eine quartalsweise Bardividende von 0,09 Dollar pro Aktie.
- Total assets increased by $634.2 million to $10.4 billion
- Gross loans grew by $239.1 million to $7.56 billion
- Total deposits increased by $294.9 million to $8.11 billion
- Core deposits up by $202.0 million to $5.71 billion
- Successfully raised $165 million through public offering
- Net loss of $48.2 million in Q3 2024 vs $5.0 million profit in Q2
- $68.5 million pre-tax loss from securities sale
- Non-performing loans increased by $14.0 million to $114.9 million
- Net Interest Margin decreased to 3.49% from 3.56%
- Efficiency ratio deteriorated to 228.7% from 74.2%
Insights
This quarterly report reveals significant strategic moves but concerning financial performance. The
The asset quality trends warrant attention with NPLs increasing by
Board of Directors Declares Quarterly Cash Dividend of
On September 27, 2024, the Company completed a public offering of 8,684,210 shares of its Class A voting common stock, at a price to the public of
Following the capital raise, the Company executed on the previously announced investment portfolio repositioning, which consisted in the sale of
“As previously noted, the capital raise and follow-on investment portfolio repositioning this quarter completes the multi-year transformation we have undertaken here at Amerant,” stated Jerry Plush, Chairman and CEO. “We continued to see strong organic loan and deposit growth this quarter, which we believe evidences our intent and ability to achieve our strategic goal of becoming the bank of choice in the markets we serve.”
-
Total assets were
, an increase of$10.4 billion , compared to$634.2 million in 2Q24.$9.7 billion
-
Cash and cash equivalents were
, up$671.8 million , compared to$361.5 million in 2Q24.$310.3 million
-
Total gross loans were
, an increase of$7.56 billion , compared to$239.1 million in 2Q24.$7.32 billion
-
Average yield on loans remained at
7.08% , unchanged from 2Q24.
-
Total deposits were
, up$8.11 billion , compared to$294.9 million in 2Q24, driven by continued organic growth.$7.82 billion
-
Core deposits were
, up$5.71 billion , compared to$202.0 million in 2Q24.$5.51 billion
-
Average cost of total deposits increased slightly to
2.99% , compared to2.98% in 2Q24.
-
Loan to deposit ratio was
93.23% , compared to93.69% in 2Q24.
-
Total advances from Federal Home Loan Bank (“FHLB”) were
, up$915.0 million , compared to$150.0 million in 2Q24. The Bank had$765.0 million in availability remaining from the FHLB as of September 30, 2024.$1.9 billion
-
Total non-performing loans (“NPL”) were
, up$114.9 million , compared to$14.0 million as of 2Q24, while special mention loans declined to$101.0 million at September 30, 2024 compared to$76.4 million at June 30, 2024.$95.3 million
-
OREO was
, a decrease of$14.5 million from 2Q24, primarily driven by the valuation expense recorded in the third quarter of 2024.$5.7 million
-
The allowance for credit losses ("ACL") was
, a decrease of$79.9 million , compared to$14.5 million as of 2Q24. The Company charged off$94.4 million against previously established specific reserves as of quarter end September 30, 2024.$17.3 million
-
Assets Under Management and custody (“AUM”) totaled
, up$2.55 billion , from$98.7 million in 2Q24.$2.45 billion
-
Pre-provision net revenue (“PPNR”)(1) was negative
, compared to PPNR of$42.9 million in 2Q24. Excluding non-routine items in non-interest income and expense, PPNR(2) was$25.5 million , compared to$31.3 million in 2Q24.$31.0 million
-
Net Interest Margin (“NIM”) was
3.49% , down from3.56% in 2Q24. The decrease in NIM was primarily driven by higher average balances in NPLs as well as higher average balances in interest bearing liabilities and cost of funds.
-
Net Interest Income (“NII”) was
, up$81.0 million , from$1.6 million in 2Q24.$79.4 million
-
Provision for credit losses was
, down$19.0 million , compared to$0.2 million in 2Q24.$19.2 million
-
Non-interest income was negative
due to the net loss recorded on the investment portfolio repositioning initiated during the quarter. Excluding non-routine items, non-interest income(2) was$47.7 million , compared to non-interest income of$20.8 million in 2Q24. Non-interest income in 3Q24 includes$19.4 million resulting from the unwinding of a swap related to the sale of a non-performing loan, which was offset by$1.6 million in non-interest expense (no impact to P&L).$1.6 million
-
Non-interest expense was
, up$76.2 million , from$2.9 million in 2Q24. Excluding non-routine items, non-interest expense(2) was$73.3 million . Non-interest expense in 3Q24 includes$70.5 million resulting from the unwinding of a swap related to the sale of a non-performing loan, which was offset by of$1.6 million in non-interest income (no impact to P&L).$1.6 million
-
The efficiency ratio was
228.7% , compared to74.2% in 2Q24. Excluding non-routine items in non-interest income and expense, the efficiency ratio(2) was69.3% , compared to68.6% in 2Q24.
-
Return on average assets (“ROA”) was negative
1.92% , compared to0.21% in 2Q24. Excluding non-routine items in non-interest income and expense, ROA(2) was0.37% compared to0.38% in 2Q24.
-
Return on average equity (“ROE”) was negative
24.98% , compared to2.68% in 2Q24. Excluding non-routine items in non-interest income and expense, ROE(2) was4.80% compared to5.03% in 2Q24.
-
The Company’s Board of Directors declared a cash dividend of
per share of common stock on October 23, 2024. The dividend is payable on November 29, 2024, to shareholders of record on November 14, 2024.$0.09
Additional details on third quarter 2024 results can be found in the Exhibits and Glossary of Terms and Definitions to this earnings release, and the earnings presentation available under the Investor Relations section of the Company’s website at https://investor.amerantbank.com. See Glossary of Terms and Definitions for definitions of financial terms.
1 Non-GAAP measure, see “Non-GAAP Financial Measures” for more information and Exhibit 2 for a reconciliation to GAAP measures. |
2 Represents core PPNR, core noninterest income, core noninterest expense, core efficiency ratio, core ROA or Core ROE, as applicable, which are Non-GAAP measures. See “Non-GAAP Financial Measures” for more information and Exhibit 2 for a reconciliation to GAAP measures. |
Third Quarter 2024 Earnings Conference Call
The Company will hold an earnings conference call on Thursday, October 24, 2024 at 9:00 a.m. (Eastern Time) to discuss its third quarter 2024 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the Company’s website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link.
About Amerant Bancorp Inc. (NYSE: AMTB)
Amerant Bancorp Inc. is a bank holding company headquartered in
Cautionary Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. Examples of forward-looking statements include but are not limited to: our future operating or financial performance, including revenues, expenses, expense savings, income or loss and earnings or loss per share, and other financial items; statements regarding expectations, plans or objectives for future operations, products or services, and our expectations on our investment portfolio repositioning and loan recoveries or reaching positive resolutions on problem loans. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “goals,” “outlooks,” “modeled,” “dedicated,” “create,” and other similar words and expressions of the future.
Forward-looking statements, including those relating to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2023 filed on March 7, 2024, in our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024 filed on May 3, 2024 and in our other filings with the
Interim Financial Information
Unaudited financial information as of and for interim periods, including the three month periods ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, and the nine month periods ended September 30, 2024 and 2023 may not reflect our results of operations for our fiscal year ending, or financial condition, as of December 31, 2024, or any other period of time or date.
Non-GAAP Financial Measures
The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in
We use certain non-GAAP financial measures, including those mentioned above, both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our past performance and prospects for future performance, especially in light of the additional costs we have incurred in connection with the Company’s restructuring activities that began in 2018 and continued in 2024, including the effect of non-core banking activities such as the sale of loans and securities (including the investment portfolio repositioning initiated at the end of the third quarter of 2024) and other repossessed assets, the Houston Transaction, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments, Bank owned life insurance restructure and other non-routine actions intended to improve customer service and operating performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.
Exhibit 2 reconciles these non-GAAP financial measures to GAAP reported results.
Exhibit 1- Selected Financial Information
The following table sets forth selected financial information derived from our interim unaudited and annual audited consolidated financial statements.
(in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Consolidated Balance Sheets |
|
|
|
|
|
|
(audited) |
|
|
|||||
Total assets |
$ |
10,381,961 |
|
$ |
9,747,738 |
|
$ |
9,817,772 |
|
$ |
9,716,327 |
|
$ |
9,345,700 |
Total investments |
|
1,542,544 |
|
|
1,547,864 |
|
|
1,578,568 |
|
|
1,496,975 |
|
|
1,314,367 |
Total gross loans (1)(2) |
|
7,561,963 |
|
|
7,322,911 |
|
|
7,006,383 |
|
|
7,264,912 |
|
|
7,142,596 |
Allowance for credit losses |
|
79,890 |
|
|
94,400 |
|
|
96,050 |
|
|
95,504 |
|
|
98,773 |
Total deposits |
|
8,110,944 |
|
|
7,816,011 |
|
|
7,878,243 |
|
|
7,894,863 |
|
|
7,546,912 |
Core deposits (1) |
|
5,707,366 |
|
|
5,505,349 |
|
|
5,633,165 |
|
|
5,597,766 |
|
|
5,244,034 |
Advances from the Federal Home Loan Bank |
|
915,000 |
|
|
765,000 |
|
|
715,000 |
|
|
645,000 |
|
|
595,000 |
Senior notes |
|
59,764 |
|
|
59,685 |
|
|
59,605 |
|
|
59,526 |
|
|
59,447 |
Subordinated notes |
|
29,582 |
|
|
29,539 |
|
|
29,497 |
|
|
29,454 |
|
|
29,412 |
Junior subordinated debentures |
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
|
|
64,178 |
Stockholders' equity (3)(4)(5) |
|
902,888 |
|
|
734,342 |
|
|
738,085 |
|
|
736,068 |
|
|
719,787 |
Assets under management and custody (1) |
|
2,550,541 |
|
|
2,451,854 |
|
|
2,357,621 |
|
|
2,289,135 |
|
|
2,092,200 |
|
Three Months Ended |
||||||||||||||||||
(in thousands, except percentages, share data and per share amounts) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Consolidated Results of Operations |
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
$ |
80,999 |
|
|
$ |
79,355 |
|
|
$ |
77,968 |
|
|
$ |
81,677 |
|
|
$ |
78,577 |
|
Provision for credit losses (6) |
|
19,000 |
|
|
|
19,150 |
|
|
|
12,400 |
|
|
|
12,500 |
|
|
|
8,000 |
|
Noninterest (loss) income |
|
(47,683 |
) |
|
|
19,420 |
|
|
|
14,488 |
|
|
|
19,613 |
|
|
|
21,921 |
|
Noninterest expense |
|
76,208 |
|
|
|
73,302 |
|
|
|
66,594 |
|
|
|
109,702 |
|
|
|
64,420 |
|
Net (loss) income attributable to Amerant Bancorp Inc. (7) |
|
(48,164 |
) |
|
|
4,963 |
|
|
|
10,568 |
|
|
|
(17,123 |
) |
|
|
22,119 |
|
Effective income tax rate |
|
22.18 |
% |
|
|
21.51 |
% |
|
|
21.50 |
% |
|
|
14.21 |
% |
|
|
22.57 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Share Data |
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' book value per common share |
$ |
21.44 |
|
|
$ |
21.88 |
|
|
$ |
21.90 |
|
|
$ |
21.90 |
|
|
$ |
21.43 |
|
Tangible stockholders' equity (book value) per common share (8) |
$ |
20.87 |
|
|
$ |
21.15 |
|
|
$ |
21.16 |
|
|
$ |
21.16 |
|
|
$ |
20.63 |
|
Tangible stockholders' equity (book value) per common share, adjusted for unrealized losses on debt securities held to maturity (8) |
$ |
20.87 |
|
|
$ |
20.54 |
|
|
$ |
20.60 |
|
|
$ |
20.68 |
|
|
$ |
19.86 |
|
Basic (loss) earnings per common share |
$ |
(1.43 |
) |
|
$ |
0.15 |
|
|
$ |
0.32 |
|
|
$ |
(0.51 |
) |
|
$ |
0.66 |
|
Diluted (loss) earnings per common share (9) |
$ |
(1.43 |
) |
|
$ |
0.15 |
|
|
$ |
0.31 |
|
|
$ |
(0.51 |
) |
|
$ |
0.66 |
|
Basic weighted average shares outstanding |
|
33,784,999 |
|
|
|
33,581,604 |
|
|
|
33,538,069 |
|
|
|
33,432,871 |
|
|
|
33,489,560 |
|
Diluted weighted average shares outstanding (9) |
|
33,784,999 |
|
|
|
33,780,666 |
|
|
|
33,821,562 |
|
|
|
33,432,871 |
|
|
|
33,696,620 |
|
Cash dividend declared per common share (4) |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
Three Months Ended |
|||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Other Financial and Operating Data (10) |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Profitability Indicators (%) |
|
|
|
|
|
|
|
|
|
|||||
Net interest income / Average total interest earning assets (NIM) (1) |
3.49 |
% |
|
3.56 |
% |
|
3.51 |
% |
|
3.72 |
% |
|
3.57 |
% |
Net (loss) income/ Average total assets (ROA)(1) |
(1.92 |
)% |
|
0.21 |
% |
|
0.44 |
% |
|
(0.71 |
)% |
|
0.92 |
% |
Net (loss) income/ Average stockholders' equity (ROE) (1) |
(24.98 |
)% |
|
2.68 |
% |
|
5.69 |
% |
|
(9.22 |
)% |
|
11.93 |
% |
Noninterest (loss) income / Total revenue (1) |
(143.12 |
)% |
|
19.66 |
% |
|
15.67 |
% |
|
19.36 |
% |
|
21.81 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Capital Indicators (%) |
|
|
|
|
|
|
|
|
|
|||||
Total capital ratio (1) |
12.66 |
% |
|
11.88 |
% |
|
12.49 |
% |
|
12.12 |
% |
|
12.70 |
% |
Tier 1 capital ratio (1) |
11.31 |
% |
|
10.34 |
% |
|
10.87 |
% |
|
10.54 |
% |
|
11.08 |
% |
Tier 1 leverage ratio (1) |
9.56 |
% |
|
8.74 |
% |
|
8.73 |
% |
|
8.84 |
% |
|
9.05 |
% |
Common equity tier 1 capital ratio (CET1) (1) |
10.60 |
% |
|
9.60 |
% |
|
10.10 |
% |
|
9.79 |
% |
|
10.30 |
% |
Tangible common equity ratio (1) |
8.48 |
% |
|
7.30 |
% |
|
7.28 |
% |
|
7.34 |
% |
|
7.44 |
% |
Tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity (1) |
8.48 |
% |
|
7.11 |
% |
|
7.10 |
% |
|
7.18 |
% |
|
7.18 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Liquidity Ratios (%) |
|
|
|
|
|
|
|
|
|
|||||
Loans to Deposits (1) |
93.23 |
% |
|
93.69 |
% |
|
88.93 |
% |
|
92.02 |
% |
|
94.64 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Asset Quality Indicators (%) |
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets / Total assets (1) |
1.25 |
% |
|
1.24 |
% |
|
0.51 |
% |
|
0.56 |
% |
|
0.57 |
% |
Non-performing loans / Total gross loans (1) |
1.52 |
% |
|
1.38 |
% |
|
0.43 |
% |
|
0.47 |
% |
|
0.46 |
% |
Allowance for credit losses / Total non-performing loans |
69.51 |
% |
|
93.51 |
% |
|
317.01 |
% |
|
277.63 |
% |
|
297.55 |
% |
Allowance for credit losses / Total loans held for investment |
1.15 |
% |
|
1.41 |
% |
|
1.38 |
% |
|
1.39 |
% |
|
1.40 |
% |
Net charge-offs / Average total loans held for investment (1)(11) |
1.90 |
% |
|
1.13 |
% |
|
0.69 |
% |
|
0.85 |
% |
|
0.82 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Efficiency Indicators (% except FTE) |
|
|
|
|
|
|
|
|
|
|||||
Noninterest expense / Average total assets |
3.04 |
% |
|
3.03 |
% |
|
2.75 |
% |
|
4.57 |
% |
|
2.69 |
% |
Salaries and employee benefits / Average total assets |
1.39 |
% |
|
1.40 |
% |
|
1.36 |
% |
|
1.38 |
% |
|
1.31 |
% |
Other operating expenses/ Average total assets (1) |
1.64 |
% |
|
1.63 |
% |
|
1.39 |
% |
|
3.20 |
% |
|
1.38 |
% |
Efficiency ratio (1) |
228.74 |
% |
|
74.21 |
% |
|
72.03 |
% |
|
108.30 |
% |
|
64.10 |
% |
Full-Time-Equivalent Employees (FTEs) (12) |
735 |
|
|
720 |
|
|
696 |
|
|
682 |
|
|
700 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||||||||||||
(in thousands, except percentages and per share amounts) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Core Selected Consolidated Results of Operations and Other Data (8) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-provision net revenue (loss) (PPNR) |
$ |
(42,892 |
) |
|
$ |
25,473 |
|
|
$ |
25,862 |
|
|
$ |
(7,595 |
) |
|
$ |
36,456 |
|
Core pre-provision net revenue (Core PPNR) |
$ |
31,264 |
|
|
$ |
31,007 |
|
|
$ |
26,068 |
|
|
$ |
29,811 |
|
|
$ |
35,880 |
|
Core net income |
$ |
9,249 |
|
|
$ |
9,307 |
|
|
$ |
10,730 |
|
|
$ |
15,272 |
|
|
$ |
21,664 |
|
Core basic earnings per common share |
|
0.27 |
|
|
|
0.28 |
|
|
|
0.32 |
|
|
|
0.46 |
|
|
|
0.65 |
|
Core earnings per diluted common share (9) |
|
0.27 |
|
|
|
0.28 |
|
|
|
0.32 |
|
|
|
0.46 |
|
|
|
0.64 |
|
Core net income / Average total assets (Core ROA) (1) |
|
0.37 |
% |
|
|
0.38 |
% |
|
|
0.44 |
% |
|
|
0.64 |
% |
|
|
0.91 |
% |
Core net income / Average stockholders' equity (Core ROE) (1) |
|
4.80 |
% |
|
|
5.03 |
% |
|
|
5.78 |
% |
|
|
8.23 |
% |
|
|
11.69 |
% |
Core efficiency ratio (13) |
|
69.29 |
% |
|
|
68.60 |
% |
|
|
71.87 |
% |
|
|
69.67 |
% |
|
|
62.08 |
% |
___________________ |
|
(1) |
See Glossary of Terms and Definitions for definitions of financial terms. |
(2) |
As of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, mortgage loans held for sale carried at fair value totaled |
(3) |
In the fourth quarter of 2022, the Company announced that the Board of Directors authorized a new repurchase program pursuant to which the Company may purchase, from time to time, up to an aggregate amount of |
(4) |
For all periods shown, the Company’s Board of Directors declared cash dividends of |
(5) |
On September 27, 2024, the Company completed a public offering of 8,684,210 shares of its Class A voting common stock, at a price to the public of |
(6) |
In the third, second and first quarter of 2024 and in the fourth and third quarter of 2023, includes |
(7) |
In the three months ended December 31, 2023 and September 30, 2023, net income excludes losses of |
(8) |
This presentation contains adjusted financial information determined by methods other than GAAP. This adjusted financial information is reconciled to GAAP in Exhibit 2 - Non-GAAP Financial Measures Reconciliation. |
(9) |
See 2023 Form 10-K for more information on potential dilutive instruments and its impact on diluted earnings per share computation. |
(10) |
Operating data for the periods presented have been annualized. |
(11) |
See 2023 Form 10-K for more details on charge-offs for all previous periods. |
(12) |
As of September 30, 2024, June 30, 2024, March 31, 2034, December 31, 2023 and September 30, 2023, includes 81, 83, 65, 67 and 98 FTEs for Amerant Mortgage, respectively. |
(13) |
Core efficiency ratio is the efficiency ratio less the effect of restructuring costs and other non-routine items, described in Exhibit 2 - Non-GAAP Financial Measures Reconciliation. |
Exhibit 2- Non-GAAP Financial Measures Reconciliation
The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related to tax deductible restructuring costs, provision for (reversal of) credit losses, provision for income tax expense (benefit), the effect of non-core banking activities such as the sale of loans and securities and other repossessed assets, the Houston Transaction, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments, Bank owned life insurance restructure and other non-routine actions intended to improve customer service and operating performance. The Company believes these adjusted numbers are useful to understand the Company’s performance absent these transactions and events.
|
Three Months Ended, |
||||||||||||||||||
(in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
||||||||||||||||
Net (loss) income attributable to Amerant Bancorp Inc. |
$ |
(48,164 |
) |
|
$ |
4,963 |
|
|
$ |
10,568 |
|
|
$ |
(17,123 |
) |
|
$ |
22,119 |
|
Plus: provision for credit losses (1) |
|
19,000 |
|
|
|
19,150 |
|
|
|
12,400 |
|
|
|
12,500 |
|
|
|
8,000 |
|
Plus: provision for income tax (benefit) expense |
|
(13,728 |
) |
|
|
1,360 |
|
|
|
2,894 |
|
|
|
(2,972 |
) |
|
|
6,337 |
|
Pre-provision net revenue (loss) (PPNR) |
|
(42,892 |
) |
|
|
25,473 |
|
|
|
25,862 |
|
|
|
(7,595 |
) |
|
|
36,456 |
|
Plus: non-routine noninterest expense items |
|
5,672 |
|
|
|
5,562 |
|
|
|
— |
|
|
|
43,094 |
|
|
|
6,303 |
|
Plus (less): non-routine noninterest income items |
|
68,484 |
|
|
|
(28 |
) |
|
|
206 |
|
|
|
(5,688 |
) |
|
|
(6,879 |
) |
Core pre-provision net revenue (Core PPNR) |
$ |
31,264 |
|
|
$ |
31,007 |
|
|
$ |
26,068 |
|
|
$ |
29,811 |
|
|
$ |
35,880 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total noninterest (loss) income |
$ |
(47,683 |
) |
|
$ |
19,420 |
|
|
$ |
14,488 |
|
|
$ |
19,613 |
|
|
$ |
21,921 |
|
Less: Non-routine noninterest (loss) income items: |
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives (losses) gains, net |
|
— |
|
|
|
(44 |
) |
|
|
(152 |
) |
|
|
(151 |
) |
|
|
(77 |
) |
Securities (losses) gains, net (2) |
|
(68,484 |
) |
|
|
(117 |
) |
|
|
(54 |
) |
|
|
33 |
|
|
|
(54 |
) |
Bank owned life insurance charge (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(655 |
) |
|
|
— |
|
Gains on early extinguishment of FHLB advances, net |
|
— |
|
|
|
189 |
|
|
|
— |
|
|
|
6,461 |
|
|
|
7,010 |
|
Total non-routine noninterest (loss) income items |
$ |
(68,484 |
) |
|
$ |
28 |
|
|
$ |
(206 |
) |
|
$ |
5,688 |
|
|
$ |
6,879 |
|
Core noninterest income |
$ |
20,801 |
|
|
$ |
19,392 |
|
|
$ |
14,694 |
|
|
$ |
13,925 |
|
|
$ |
15,042 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total noninterest expense |
$ |
76,208 |
|
|
$ |
73,302 |
|
|
$ |
66,594 |
|
|
$ |
109,702 |
|
|
$ |
64,420 |
|
Less: non-routine noninterest expense items |
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring costs (4): |
|
|
|
|
|
|
|
|
|
||||||||||
Staff reduction costs (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,120 |
|
|
|
489 |
|
Contract termination costs (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consulting and other professional fees and software expenses(7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,629 |
|
|
|
— |
|
Branch closure expenses and related charges (8) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
252 |
|
Total restructuring costs |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,749 |
|
|
$ |
741 |
|
Other non-routine noninterest expense items: |
|
|
|
|
|
|
|
|
|
||||||||||
Losses on loans held for sale carried at the lower cost or fair value (9)(10) |
|
— |
|
|
|
1,258 |
|
|
|
— |
|
|
|
37,495 |
|
|
|
5,562 |
|
Other real estate owned valuation expense |
|
5,672 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Goodwill and intangible assets impairment (10) |
|
— |
|
|
|
300 |
|
|
|
— |
|
|
|
1,713 |
|
|
|
— |
|
Fixed assets impairment (10)(11) |
|
— |
|
|
|
3,443 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Legal and broker fees (10) |
|
— |
|
|
|
561 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Bank owned life insurance enhancement costs (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,137 |
|
|
|
— |
|
Impairment charge on investment carried at cost |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-routine noninterest expense items |
$ |
5,672 |
|
|
$ |
5,562 |
|
|
$ |
— |
|
|
$ |
43,094 |
|
|
$ |
6,303 |
|
Core noninterest expense |
$ |
70,536 |
|
|
$ |
67,740 |
|
|
$ |
66,594 |
|
|
$ |
66,608 |
|
|
$ |
58,117 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended, |
||||||||||||||||||
|
|||||||||||||||||||
(in thousands, except percentages and per share amounts) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
|
|
|
|
||||||||||||||||
Net (loss) income attributable to Amerant Bancorp Inc. |
$ |
(48,164 |
) |
|
$ |
4,963 |
|
|
$ |
10,568 |
|
|
$ |
(17,123 |
) |
|
$ |
22,119 |
|
Plus after-tax non-routine items in noninterest expense: |
|
|
|
|
|
|
|
|
|
||||||||||
Non-routine items in noninterest expense before income tax effect |
|
5,672 |
|
|
|
5,562 |
|
|
|
— |
|
|
|
43,094 |
|
|
|
6,303 |
|
Income tax effect (12) |
|
(1,332 |
) |
|
|
(1,196 |
) |
|
|
— |
|
|
|
(8,887 |
) |
|
|
(1,486 |
) |
Total after-tax non-routine items in noninterest expense |
|
4,340 |
|
|
|
4,366 |
|
|
|
— |
|
|
|
34,207 |
|
|
|
4,817 |
|
Plus (less) after-tax non-routine items in noninterest income: |
|
|
|
|
|
|
|
|
|
||||||||||
Non-routine items in noninterest income before income tax effect |
|
68,484 |
|
|
|
(28 |
) |
|
|
206 |
|
|
|
(5,688 |
) |
|
|
(6,879 |
) |
Income tax effect (12) |
|
(15,411 |
) |
|
|
6 |
|
|
|
(44 |
) |
|
|
1,032 |
|
|
|
1,607 |
|
Total after-tax non-routine items in noninterest income |
|
53,073 |
|
|
|
(22 |
) |
|
|
162 |
|
|
|
(4,656 |
) |
|
|
(5,272 |
) |
BOLI enhancement tax impact (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,844 |
|
|
|
— |
|
Core net income |
$ |
9,249 |
|
|
$ |
9,307 |
|
|
$ |
10,730 |
|
|
$ |
15,272 |
|
|
$ |
21,664 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic (loss) earnings per share |
$ |
(1.43 |
) |
|
$ |
0.15 |
|
|
$ |
0.32 |
|
|
$ |
(0.51 |
) |
|
$ |
0.66 |
|
Plus: after tax impact of non-routine items in noninterest expense and BOLI tax impact (13) |
|
0.13 |
|
|
|
0.13 |
|
|
|
— |
|
|
|
1.11 |
|
|
|
0.14 |
|
Plus (less): after tax impact of non-routine items in noninterest income |
|
1.57 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.14 |
) |
|
|
(0.15 |
) |
Total core basic earnings per common share |
$ |
0.27 |
|
|
$ |
0.28 |
|
|
$ |
0.32 |
|
|
$ |
0.46 |
|
|
$ |
0.65 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted (loss) earnings per share (14) |
$ |
(1.43 |
) |
|
$ |
0.15 |
|
|
$ |
0.31 |
|
|
$ |
(0.51 |
) |
|
$ |
0.66 |
|
Plus: after tax impact of non-routine items in noninterest expense and BOLI tax impact (13) |
|
0.13 |
|
|
|
0.13 |
|
|
|
— |
|
|
|
1.11 |
|
|
|
0.14 |
|
Plus (less): after tax impact of non-routine items in noninterest income |
|
1.57 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
(0.14 |
) |
|
|
(0.16 |
) |
Total core diluted earnings per common share |
$ |
0.27 |
|
|
$ |
0.28 |
|
|
$ |
0.32 |
|
|
$ |
0.46 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income / Average total assets (ROA) |
|
(1.92 |
)% |
|
|
0.21 |
% |
|
|
0.44 |
% |
|
|
(0.71 |
)% |
|
|
0.92 |
% |
Plus: after tax impact of non-routine items in noninterest expense and BOLI tax impact (13) |
|
0.18 |
% |
|
|
0.17 |
% |
|
|
— |
% |
|
|
1.55 |
% |
|
|
0.20 |
% |
Plus (less): after tax impact of non-routine items in noninterest income |
|
2.11 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
(0.20 |
)% |
|
|
(0.21 |
)% |
Core net income / Average total assets (Core ROA) |
|
0.37 |
% |
|
|
0.38 |
% |
|
|
0.44 |
% |
|
|
0.64 |
% |
|
|
0.91 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income/ Average stockholders' equity (ROE) |
|
(24.98 |
)% |
|
|
2.68 |
% |
|
|
5.69 |
% |
|
|
(9.22 |
)% |
|
|
11.93 |
% |
Plus: after tax impact of non-routine items in noninterest expense and BOLI tax impact (13) |
|
2.25 |
% |
|
|
2.36 |
% |
|
|
— |
% |
|
|
19.96 |
% |
|
|
2.60 |
% |
Plus (less): after tax impact of non-routine items in noninterest income |
|
27.53 |
% |
|
|
(0.01 |
)% |
|
|
0.09 |
% |
|
|
(2.51 |
)% |
|
|
(2.84 |
)% |
Core net income / Average stockholders' equity (Core ROE) |
|
4.80 |
% |
|
|
5.03 |
% |
|
|
5.78 |
% |
|
|
8.23 |
% |
|
|
11.69 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio |
|
228.74 |
% |
|
|
74.21 |
% |
|
|
72.03 |
% |
|
|
108.30 |
% |
|
|
64.10 |
% |
Less: impact of non-routine items in noninterest expense and noninterest income |
|
(159.45 |
)% |
|
|
(5.61 |
)% |
|
|
(0.16 |
)% |
|
|
(38.63 |
)% |
|
|
(2.02 |
)% |
Core efficiency ratio |
|
69.29 |
% |
|
|
68.60 |
% |
|
|
71.87 |
% |
|
|
69.67 |
% |
|
|
62.08 |
% |
|
|
||||||||||||||||||
(in thousands, except percentages, share data and per share amounts) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
|
|
|
|
|
|
||||||||||||||
Stockholders' equity |
$ |
902,888 |
|
|
$ |
734,342 |
|
|
$ |
738,085 |
|
|
$ |
736,068 |
|
|
$ |
719,787 |
|
Less: goodwill and other intangibles (15) |
|
(24,366 |
) |
|
|
(24,581 |
) |
|
|
(24,935 |
) |
|
|
(25,029 |
) |
|
|
(26,818 |
) |
Tangible common stockholders' equity |
$ |
878,522 |
|
|
$ |
709,761 |
|
|
$ |
713,150 |
|
|
$ |
711,039 |
|
|
$ |
692,969 |
|
Total assets |
|
10,381,961 |
|
|
|
9,747,738 |
|
|
|
9,817,772 |
|
|
|
9,716,327 |
|
|
|
9,345,700 |
|
Less: goodwill and other intangibles (15) |
|
(24,366 |
) |
|
|
(24,581 |
) |
|
|
(24,935 |
) |
|
|
(25,029 |
) |
|
|
(26,818 |
) |
Tangible assets |
$ |
10,357,595 |
|
|
$ |
9,723,157 |
|
|
$ |
9,792,837 |
|
|
$ |
9,691,298 |
|
|
$ |
9,318,882 |
|
Common shares outstanding |
|
42,103,623 |
|
|
|
33,562,756 |
|
|
|
33,709,395 |
|
|
|
33,603,242 |
|
|
|
33,583,621 |
|
Tangible common equity ratio |
|
8.48 |
% |
|
|
7.30 |
% |
|
|
7.28 |
% |
|
|
7.34 |
% |
|
|
7.44 |
% |
Stockholders' book value per common share |
$ |
21.44 |
|
|
$ |
21.88 |
|
|
$ |
21.90 |
|
|
$ |
21.90 |
|
|
$ |
21.43 |
|
Tangible stockholders' equity book value per common share |
$ |
20.87 |
|
|
$ |
21.15 |
|
|
$ |
21.16 |
|
|
$ |
21.16 |
|
|
$ |
20.63 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common stockholders' equity |
$ |
878,522 |
|
|
$ |
709,761 |
|
|
$ |
713,150 |
|
|
$ |
711,039 |
|
|
$ |
692,969 |
|
Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (16) |
|
— |
|
|
|
(20,304 |
) |
|
|
(18,729 |
) |
|
|
(16,197 |
) |
|
|
(26,138 |
) |
Tangible common stockholders' equity, adjusted for net unrealized accumulated losses on debt securities held to maturity |
$ |
878,522 |
|
|
$ |
689,457 |
|
|
$ |
694,421 |
|
|
$ |
694,842 |
|
|
$ |
666,831 |
|
Tangible assets |
$ |
10,357,595 |
|
|
$ |
9,723,157 |
|
|
$ |
9,792,837 |
|
|
$ |
9,691,298 |
|
|
$ |
9,318,882 |
|
Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (16) |
|
— |
|
|
|
(20,304 |
) |
|
|
(18,729 |
) |
|
|
(16,197 |
) |
|
|
(26,138 |
) |
Tangible assets, adjusted for net unrealized accumulated losses on debt securities held to maturity |
$ |
10,357,595 |
|
|
$ |
9,702,853 |
|
|
$ |
9,774,108 |
|
|
$ |
9,675,101 |
|
|
$ |
9,292,744 |
|
Common shares outstanding |
|
42,103,623 |
|
|
|
33,562,756 |
|
|
|
33,709,395 |
|
|
|
33,603,242 |
|
|
|
33,583,621 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity ratio, adjusted for net unrealized accumulated losses on debt securities held to maturity |
|
8.48 |
% |
|
|
7.11 |
% |
|
|
7.10 |
% |
|
|
7.18 |
% |
|
|
7.18 |
% |
Tangible stockholders' book value per common share, adjusted for net unrealized accumulated losses on debt securities held to maturity |
$ |
20.87 |
|
|
$ |
20.54 |
|
|
$ |
20.60 |
|
|
$ |
20.68 |
|
|
$ |
19.86 |
|
|
|
|
|
|
|
|
|
|
|
__________________ | |
(1) |
In the third, second and first quarter of 2024 and in the fourth and third quarter of 2023, includes |
(2) |
In the third quarter of 2024, the Company executed an investment portfolio repositioning which resulted in a total pre-tax net loss of |
(3) |
In the fourth quarter of 2023, the Company completed a restructuring of its bank-owned life insurance (“BOLI”) program. This was executed through a combination of a 1035 exchange and a surrender and reinvestment into higher-yielding general account with a new investment grade insurance carrier. This transaction allowed for higher team member participation through an enhanced split-dollar plan. Estimated improved yields resulting from the enhancement have an earn-back period of approximately 2 years. In the fourth quarter of 2023, we recorded total additional expenses and charges of |
(4) |
Expenses incurred for actions designed to implement the Company’s business strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation of new technology system applications, decommissioning of legacy technologies, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities. |
(5) |
Staff reduction costs consist of severance expenses related to organizational rationalization. |
(6) |
Contract termination and related costs associated with third party vendors resulting from the Company’s engagement of FIS. |
(7) |
In the three months ended December 31, 2023, includes an aggregate of |
(8) |
In the three months ended September 30, 2023, consists of expenses in connection with the closure of a branch in |
(9) |
In the three months ended December 31, 2023, includes (i) fair value adjustment of |
(10) |
In the three months ended June 30, 2024, amounts shown are in connection with the Houston Transaction. |
(11) |
Related to Houston branches and included as part of occupancy and equipment expenses. See Exhibit 5 for additional information. |
(12) |
In the three months ended March 31, 2024, amounts were calculated based upon the effective tax rate for the period of |
(13) |
In the three months ended December 31, 2023, per share amounts and percentages were calculated using the after-tax impact of non-routine items in noninterest expense of |
(14) |
See 2023 Form 10-K for more information on potential dilutive instruments and its impact on diluted earnings per share computation. |
(15) |
At September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, other intangible assets primarily consist of naming rights of |
(16) |
There were no debt securities held to maturity at September 30, 2024. As of June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, amounts were calculated based upon the fair value on debt securities held to maturity, and assuming a tax rate of |
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 |
|||||||||||||||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|||||||||||||||
(in thousands, except percentages) |
Average
|
Income/
|
Yield/
|
|
Average
|
Income/
|
Yield/
|
|
Average
|
Income/
|
Yield/
|
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loan portfolio, net (1)(2) |
$ |
7,291,632 |
$ |
129,752 |
7.08 |
% |
|
$ |
7,049,109 |
$ |
124,117 |
7.08 |
% |
|
$ |
7,048,891 |
$ |
120,244 |
6.77 |
% |
Debt securities available for sale (3) (4) |
|
1,313,366 |
|
14,273 |
4.32 |
% |
|
|
1,267,828 |
|
14,104 |
4.47 |
% |
|
|
1,052,147 |
|
10,924 |
4.12 |
% |
Debt securities held to maturity (5) |
|
205,958 |
|
1,752 |
3.38 |
% |
|
|
221,106 |
|
1,878 |
3.42 |
% |
|
|
232,146 |
|
1,958 |
3.35 |
% |
Debt securities held for trading |
|
— |
|
— |
— |
% |
|
|
— |
|
— |
— |
% |
|
|
2,048 |
|
4 |
0.77 |
% |
Equity securities with readily determinable fair value not held for trading |
|
2,525 |
|
19 |
2.99 |
% |
|
|
2,466 |
|
13 |
2.12 |
% |
|
|
2,479 |
|
21 |
3.36 |
% |
Federal Reserve Bank and FHLB stock |
|
61,147 |
|
1,083 |
7.05 |
% |
|
|
54,664 |
|
955 |
7.03 |
% |
|
|
54,056 |
|
961 |
7.05 |
% |
Deposits with banks |
|
344,469 |
|
4,670 |
5.39 |
% |
|
|
364,466 |
|
5,260 |
5.80 |
% |
|
|
344,015 |
|
5,248 |
6.05 |
% |
Other short-term investments |
|
6,677 |
|
88 |
5.24 |
% |
|
|
6,399 |
|
82 |
5.15 |
% |
|
|
1,964 |
|
23 |
4.65 |
% |
Total interest-earning assets |
|
9,225,774 |
|
151,637 |
6.54 |
% |
|
|
8,966,038 |
|
146,409 |
6.57 |
% |
|
|
8,737,746 |
|
139.383 |
6.33 |
% |
Total non-interest-earning assets (6) |
|
760,198 |
|
|
|
|
763,628 |
|
|
|
|
756,141 |
|
|
||||||
Total assets |
$ |
9,985,972 |
|
|
|
$ |
9,729,666 |
|
|
|
$ |
9,493,887 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||||||||||||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
||||||||||||||||||
(in thousands, except percentages) |
Average
|
Income/
|
Yield/
|
|
Average
|
Income/
|
Yield/
|
|
Average
|
Income/
|
Yield/
|
||||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Checking and saving accounts |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing DDA |
$ |
2,294,323 |
|
$ |
15,345 |
2.66 |
% |
|
$ |
2,408,979 |
|
$ |
16,779 |
2.80 |
% |
|
$ |
2,523,092 |
|
$ |
16,668 |
2.62 |
% |
Money market |
|
1,541,987 |
|
|
16,804 |
4.34 |
% |
|
|
1,411,287 |
|
|
14,973 |
4.27 |
% |
|
|
1,144,580 |
|
|
11,013 |
3.82 |
% |
Savings |
|
247,903 |
|
|
26 |
0.04 |
% |
|
|
253,625 |
|
|
26 |
0.04 |
% |
|
|
280,096 |
|
|
32 |
0.05 |
% |
Total checking and saving accounts |
|
4,084,213 |
|
|
32,175 |
3.13 |
% |
|
|
4,073,891 |
|
|
31,778 |
3.14 |
% |
|
|
3,947,768 |
|
|
27,713 |
2.79 |
% |
Time deposits |
|
2,324,694 |
|
|
27,260 |
4.67 |
% |
|
|
2,258,973 |
|
|
25,971 |
4.62 |
% |
|
|
2,201,138 |
|
|
22,482 |
4.05 |
% |
Total deposits |
|
6,408,907 |
|
|
59,435 |
3.69 |
% |
|
|
6,332,864 |
|
|
57,749 |
3.67 |
% |
|
|
6,148,906 |
|
|
50,195 |
3.24 |
% |
Securities sold under agreements to repurchase |
|
— |
|
|
— |
— |
% |
|
|
124 |
|
|
2 |
6.49 |
% |
|
|
326 |
|
|
4 |
4.87 |
% |
Advances from the FHLB (7) |
|
863,913 |
|
|
8,833 |
4.07 |
% |
|
|
737,658 |
|
|
6,946 |
3.79 |
% |
|
|
800,978 |
|
|
8,207 |
4.07 |
% |
Senior notes |
|
59,725 |
|
|
942 |
6.27 |
% |
|
|
59,646 |
|
|
941 |
6.35 |
% |
|
|
59,409 |
|
|
942 |
6.29 |
% |
Subordinated notes |
|
29,561 |
|
|
361 |
4.86 |
% |
|
|
29,519 |
|
|
361 |
4.92 |
% |
|
|
29,391 |
|
|
361 |
4.87 |
% |
Junior subordinated debentures |
|
64,178 |
|
|
1,067 |
6.61 |
% |
|
|
64,178 |
|
|
1,055 |
6.61 |
% |
|
|
64,178 |
|
|
1,097 |
6.78 |
% |
Total interest-bearing liabilities |
|
7,426,284 |
|
|
70,638 |
3.78 |
% |
|
|
7,223,989 |
|
|
67,054 |
3.73 |
% |
|
|
7,103,188 |
|
|
60,806 |
3.40 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest bearing demand deposits |
|
1,491,406 |
|
|
|
|
|
1,452,921 |
|
|
|
|
|
1,335,041 |
|
|
|
||||||
Accounts payable, accrued liabilities and other liabilities |
|
301,373 |
|
|
|
|
|
309,298 |
|
|
|
|
|
320,369 |
|
|
|
||||||
Total non-interest-bearing liabilities |
|
1,792,779 |
|
|
|
|
|
1,762,219 |
|
|
|
|
|
1,655,410 |
|
|
|
||||||
Total liabilities |
|
9,219,063 |
|
|
|
|
|
8,986,208 |
|
|
|
|
|
8,758,598 |
|
|
|
||||||
Stockholders’ equity |
|
766,909 |
|
|
|
|
|
743,458 |
|
|
|
|
|
735,289 |
|
|
|
||||||
Total liabilities and stockholders' equity |
$ |
9,985,972 |
|
|
|
|
$ |
9,729,666 |
|
|
|
|
$ |
9,493,887 |
|
|
|
||||||
Excess of average interest-earning assets over average interest-bearing liabilities |
$ |
1,799,490 |
|
|
|
|
$ |
1,742,049 |
|
|
|
|
$ |
1,634,558 |
|
|
|
||||||
Net interest income |
|
$ |
80,999 |
|
|
|
$ |
79,355 |
|
|
|
$ |
78,577 |
|
|||||||||
Net interest rate spread |
|
|
2.76 |
% |
|
|
|
2.84 |
% |
|
|
|
2.93 |
% |
|||||||||
Net interest margin (7) |
|
|
3.49 |
% |
|
|
|
3.56 |
% |
|
|
|
3.57 |
% |
|||||||||
Cost of total deposits (7) |
|
|
2.99 |
% |
|
|
|
2.98 |
% |
|
|
|
2.66 |
% |
|||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
124.23 |
% |
|
|
|
|
124.11 |
% |
|
|
|
|
123.01 |
% |
|
|
||||||
Average non-performing loans/ Average total loans |
|
1.54 |
% |
|
|
|
|
0.60 |
% |
|
|
|
|
— |
% |
|
|
|
Nine Months Ended |
||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
||||||||||||
(in thousands, except percentages) |
Average
|
Income/
|
Yield/
|
|
Average
|
Income/
|
Yield/
|
||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
||||||||
Loan portfolio, net (1)(2) |
$ |
7,102,716 |
|
$ |
376,574 |
7.08 |
% |
|
$ |
7,006,633 |
|
$ |
348,315 |
6.65 |
% |
Debt securities available for sale (3) (4) |
|
1,273,797 |
|
|
41,562 |
4.36 |
% |
|
|
1,050,648 |
|
|
31,494 |
4.01 |
% |
Debt securities held to maturity (5) |
|
217,272 |
|
|
5,597 |
3.44 |
% |
|
|
236,325 |
|
|
6,046 |
3.42 |
% |
Debt securities held for trading |
|
— |
|
|
— |
— |
% |
|
|
783 |
|
|
6 |
1.02 |
% |
Equity securities with readily determinable fair value not held for trading |
|
2,490 |
|
|
87 |
4.67 |
% |
|
|
2,455 |
|
|
21 |
1.14 |
% |
Federal Reserve Bank and FHLB stock |
|
55,352 |
|
|
2,922 |
7.05 |
% |
|
|
54,911 |
|
|
2,833 |
6.90 |
% |
Deposits with banks |
|
377,139 |
|
|
15,681 |
5.55 |
% |
|
|
342,127 |
|
|
14,272 |
5.58 |
% |
Other short-term investments |
|
6,337 |
|
|
248 |
5.22 |
% |
|
|
662 |
|
|
23 |
4.65 |
% |
Total interest-earning assets |
|
9,035,103 |
|
|
442,671 |
6.54 |
% |
|
|
8,694,544 |
|
|
403,010 |
6.20 |
% |
Total non-interest-earning assets (6) |
|
788,240 |
|
|
|
|
|
735,943 |
|
|
|
||||
Total assets |
$ |
9,823,343 |
|
|
|
|
$ |
9,430,487 |
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
||||||||
Checking and saving accounts |
|
|
|
|
|
|
|
||||||||
Interest bearing DDA |
$ |
2,382,548 |
|
$ |
49,860 |
2.80 |
% |
|
$ |
2,503,147 |
|
$ |
46,201 |
2.47 |
% |
Money market |
|
1,462,034 |
|
|
46,611 |
4.26 |
% |
|
|
1,215,005 |
|
|
28,295 |
3.11 |
% |
Savings |
|
254,661 |
|
|
79 |
0.04 |
% |
|
|
288,959 |
|
|
114 |
0.05 |
% |
Total checking and saving accounts |
|
4,099,243 |
|
|
96,550 |
3.15 |
% |
|
|
4,007,111 |
|
|
74,610 |
2.49 |
% |
Time deposits |
|
2,291,539 |
|
|
79,355 |
4.63 |
% |
|
|
2,006,417 |
|
|
53,844 |
3.59 |
% |
Total deposits |
|
6,390,782 |
|
|
175,905 |
3.68 |
% |
|
|
6,013,528 |
|
|
128,454 |
2.86 |
% |
Securities sold under agreements to repurchase |
|
41 |
|
|
2 |
6.52 |
% |
|
|
130 |
|
|
5 |
5.14 |
% |
Advances from the FHLB (7) |
|
749,195 |
|
|
21,357 |
3.81 |
% |
|
|
862,310 |
|
|
22,591 |
3.50 |
% |
Senior notes |
|
59,646 |
|
|
2,826 |
6.33 |
% |
|
|
59,330 |
|
|
2,825 |
6.37 |
% |
Subordinated notes |
|
29,519 |
|
|
1,083 |
4.90 |
% |
|
|
29,349 |
|
|
1,084 |
4.94 |
% |
Junior subordinated debentures |
|
64,178 |
|
|
3,176 |
6.61 |
% |
|
|
64,178 |
|
|
3,264 |
6.80 |
% |
Total interest-bearing liabilities |
|
7,293,361 |
|
|
204,349 |
3.74 |
% |
|
|
7,028,825 |
|
|
158,223 |
3.01 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
||||||||
Non-interest bearing demand deposits |
|
1,459,325 |
|
|
|
|
|
1,348,242 |
|
|
|
||||
Accounts payable, accrued liabilities and other liabilities |
|
318,273 |
|
|
|
|
|
313,967 |
|
|
|
||||
Total non-interest-bearing liabilities |
|
1,777,598 |
|
|
|
|
|
1,662,209 |
|
|
|
||||
Total liabilities |
|
9,070,959 |
|
|
|
|
|
8,691,034 |
|
|
|
||||
Stockholders’ equity |
|
752,384 |
|
|
|
|
|
739,453 |
|
|
|
||||
Total liabilities and stockholders' equity |
$ |
9,823,343 |
|
|
|
|
$ |
9,430,487 |
|
|
|
||||
Excess of average interest-earning assets over average interest-bearing liabilities |
$ |
1,741,742 |
|
|
|
|
$ |
1,665,719 |
|
|
|
||||
Net interest income |
|
$ |
238,322 |
|
|
|
$ |
244,787 |
|
||||||
Net interest rate spread |
|
|
2.80 |
% |
|
|
|
3.19 |
% |
||||||
Net interest margin (7) |
|
|
3.52 |
% |
|
|
|
3.76 |
% |
||||||
Cost of total deposits (7) |
|
|
2.99 |
% |
|
|
|
2.33 |
% |
||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
|
123.88 |
% |
|
|
|
|
123.70 |
% |
|
|
||||
Average non-performing loans/ Average total loans |
|
0.93 |
% |
|
|
|
|
0.48 |
% |
|
|
___________________ | |
(1) |
Includes loans held for investment net of the allowance for credit losses, and loans held for sale. The average balance of the allowance for credit losses was |
(2) |
Includes average non-performing loans of |
(3) |
Includes the average balance of net unrealized gains and losses in the fair value of debt securities available for sale. The average balance includes average net unrealized losses of |
(4) |
Includes nontaxable securities with average balances of |
(5) |
Includes nontaxable securities with average balances of |
(6) |
Excludes the allowance for credit losses. |
(7) |
See Glossary of Terms and Definitions for definitions of financial terms. |
Exhibit 4 - Noninterest Income
This table shows the amounts of each of the categories of noninterest income for the periods presented.
|
Three Months Ended |
|
Nine Months Ended September 30, |
|||||||||||||||||||||||||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
2024 |
|
2023 |
|||||||||||||||||||||||
(in thousands, except percentages) |
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
% |
|
Amount |
% |
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Deposits and service fees |
$ |
5,046 |
|
|
10.6 |
% |
|
$ |
5,281 |
|
|
27.2 |
% |
|
$ |
5,053 |
|
|
23.1 |
% |
|
$ |
14,652 |
|
106.4 |
% |
|
$ |
14,952 |
|
22.0 |
% |
Brokerage, advisory and fiduciary activities |
|
4,466 |
|
|
9.4 |
% |
|
|
4,538 |
|
|
23.4 |
% |
|
|
4,370 |
|
|
19.9 |
% |
|
|
13,331 |
|
96.8 |
% |
|
|
12,808 |
|
18.9 |
% |
Change in cash surrender value of bank owned life insurance (“BOLI”)(1) |
|
2,332 |
|
|
4.9 |
% |
|
|
2,242 |
|
|
11.5 |
% |
|
|
1,483 |
|
|
6.8 |
% |
|
|
6,916 |
|
50.2 |
% |
|
|
4,324 |
|
6.4 |
% |
Cards and trade finance servicing fees |
|
1,430 |
|
|
3.0 |
% |
|
|
1,331 |
|
|
6.9 |
% |
|
|
734 |
|
|
3.4 |
% |
|
|
3,984 |
|
28.9 |
% |
|
|
1,829 |
|
2.7 |
% |
Gain on early extinguishment of FHLB advances, net |
|
— |
|
|
— |
% |
|
|
189 |
|
|
1.0 |
% |
|
|
7,010 |
|
|
32.0 |
% |
|
|
189 |
|
1.4 |
% |
|
|
33,623 |
|
49.5 |
% |
Securities (losses) gains, net (2) |
|
(68,484 |
) |
|
(143.6 |
)% |
|
|
(117 |
) |
|
(0.6 |
)% |
|
|
(54 |
) |
|
(0.3 |
)% |
|
|
(68,655 |
) |
(498.4 |
)% |
|
|
(11,022 |
) |
(16.2 |
)% |
Loan-level derivative income (3) |
|
3,515 |
|
|
7.4 |
% |
|
|
2,357 |
|
|
12.1 |
% |
|
|
1,196 |
|
|
5.5 |
% |
|
|
6,338 |
|
46.0 |
% |
|
|
3,743 |
|
5.5 |
% |
Derivative (losses) gains, net (4) |
|
— |
|
|
— |
% |
|
|
(44 |
) |
|
(0.2 |
)% |
|
|
(77 |
) |
|
(0.4 |
)% |
|
|
(196 |
) |
(1.4 |
)% |
|
|
179 |
|
0.3 |
% |
Other noninterest income (5) |
|
4,012 |
|
|
8.3 |
% |
|
|
3,643 |
|
|
18.7 |
% |
|
|
2,206 |
|
|
10.0 |
% |
|
|
9,666 |
|
70.1 |
% |
|
|
7,447 |
|
10.9 |
% |
Total noninterest (loss) income |
$ |
(47,683 |
) |
|
(100.0 |
)% |
|
$ |
19,420 |
|
|
100.0 |
% |
|
$ |
21,921 |
|
|
100.0 |
% |
|
$ |
(13,775 |
) |
(100.0 |
)% |
|
$ |
67,883 |
|
100.0 |
% |
_________________ | |
(1) |
Changes in cash surrender value of BOLI are not taxable. |
(2) |
Includes a total net loss of |
(3) |
Income from interest rate swaps and other derivative transactions with customers. The Company incurs expenses related to derivative transactions with customers which are included as part of noninterest expenses under loan-level derivative expense. See Exhibit 5 for more details. |
(4) |
Net unrealized gains and losses related to uncovered interest rate caps with clients. |
(5) |
Includes mortgage banking income of |
Exhibit 5 - Noninterest Expense
This table shows the amounts of each of the categories of noninterest expense for the periods presented.
|
Three Months Ended |
|
Nine Months Ended September 30, |
|||||||||||||||||||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
2024 |
|
2023 |
|||||||||||||||||
(in thousands, except percentages) |
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
Salaries and employee benefits (1) |
$ |
34,979 |
45.9 |
% |
|
$ |
33,857 |
|
46.2 |
% |
|
$ |
31,334 |
|
48.6 |
% |
|
$ |
101,794 |
47.1 |
% |
|
$ |
100,457 |
49.8 |
% |
Occupancy and equipment (2) |
|
5,891 |
7.7 |
% |
|
|
9,041 |
|
12.3 |
% |
|
|
7,293 |
|
11.3 |
% |
|
|
21,408 |
9.9 |
% |
|
|
20,828 |
10.3 |
% |
Professional and other services fees (3) |
|
13,711 |
18.0 |
% |
|
|
12,110 |
|
16.5 |
% |
|
|
5,325 |
|
8.3 |
% |
|
|
36,784 |
17.0 |
% |
|
|
20,368 |
10.1 |
% |
Loan-level derivative expense (4) |
|
1,802 |
2.4 |
% |
|
|
580 |
|
0.8 |
% |
|
|
18 |
|
— |
% |
|
|
2,386 |
1.1 |
% |
|
|
1,728 |
0.9 |
% |
Telecommunications and data processing (5) |
|
2,991 |
3.9 |
% |
|
|
2,732 |
|
3.7 |
% |
|
|
3,556 |
|
5.5 |
% |
|
|
9,256 |
4.3 |
% |
|
|
11,647 |
5.8 |
% |
Depreciation and amortization (6) |
|
1,737 |
2.3 |
% |
|
|
1,652 |
|
2.3 |
% |
|
|
1,795 |
|
2.8 |
% |
|
|
4,866 |
2.3 |
% |
|
|
5,362 |
2.7 |
% |
FDIC assessments and insurance |
|
2,863 |
3.8 |
% |
|
|
2,772 |
|
3.8 |
% |
|
|
2,590 |
|
4.0 |
% |
|
|
8,643 |
4.0 |
% |
|
|
8,066 |
4.0 |
% |
Losses on loans held for sale carried at the lower cost or fair value (7) |
|
— |
— |
% |
|
|
1,258 |
|
1.7 |
% |
|
|
5,562 |
|
8.6 |
% |
|
|
1,258 |
0.6 |
% |
|
|
5,562 |
2.8 |
% |
Advertising expenses |
|
3,468 |
4.6 |
% |
|
|
4,243 |
|
5.8 |
% |
|
|
2,724 |
|
4.2 |
% |
|
|
10,789 |
5.0 |
% |
|
|
9,642 |
4.8 |
% |
Other real estate owned and repossessed assets (income) expense, net (8) |
|
5,535 |
7.3 |
% |
|
|
(148 |
) |
(0.2 |
)% |
|
|
(134 |
) |
(0.2 |
)% |
|
|
5,033 |
2.3 |
% |
|
|
2,297 |
1.1 |
% |
Contract termination costs (9) |
|
— |
— |
% |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
— |
— |
% |
|
|
1,550 |
0.8 |
% |
Other operating expenses (10) |
|
3,231 |
4.1 |
% |
|
|
5,205 |
|
7.1 |
% |
|
|
4,357 |
|
6.9 |
% |
|
|
13,887 |
6.4 |
% |
|
|
14,146 |
6.9 |
% |
Total noninterest expense (11) |
$ |
76,208 |
100.0 |
% |
|
$ |
73,302 |
|
100.0 |
% |
|
$ |
64,420 |
|
100.0 |
% |
|
$ |
216,104 |
100.0 |
% |
|
$ |
201,653 |
100.0 |
% |
_________________ | |
(1) |
Includes staff reduction costs of |
(2) |
In the three month period ended June 30, 2024 and nine month period ended September 30, 2024, includes fixed assets impairment charge of |
(3) |
Includes |
(4) |
Includes services fees in connection with our loan-level derivative income generation activities. |
(5) |
Includes a charge of |
(6) |
Includes a charge of |
(7) |
In each of the three months ended June 30, 2024, amounts shown are in connection with the Houston Transaction. In the three and nine month periods ended September 30, 2023, includes valuation allowance as a result of changes in the fair value of loans held for sale carried at the lower of cost or fair value. |
(8) |
Includes OREO rental income of |
(9) |
Contract termination and related costs associated with third party vendors resulting from the Company’s transition to our new technology provider. |
(10) |
In each of the three months ended June 30, 2024 and nine months ended September 30, 2024, includes broker fees of |
(11) |
Includes |
Exhibit 6 - Consolidated Balance Sheets |
|||||||||||||||||||
(in thousands, except share data) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Assets |
|
|
|
|
|
|
(audited) |
|
|
||||||||||
Cash and due from banks |
$ |
40,538 |
|
|
$ |
32,762 |
|
|
$ |
41,231 |
|
|
$ |
47,234 |
|
|
$ |
48,145 |
|
Interest earning deposits with banks |
|
614,345 |
|
|
|
238,346 |
|
|
|
577,843 |
|
|
|
242,709 |
|
|
|
202,946 |
|
Restricted cash |
|
10,087 |
|
|
|
32,430 |
|
|
|
33,897 |
|
|
|
25,849 |
|
|
|
51,837 |
|
Other short-term investments |
|
6,871 |
|
|
|
6,781 |
|
|
|
6,700 |
|
|
|
6,080 |
|
|
|
6,024 |
|
Cash and cash equivalents |
|
671,841 |
|
|
|
310,319 |
|
|
|
659,671 |
|
|
|
321,872 |
|
|
|
308,952 |
|
Securities |
|
|
|
|
|
|
|
|
|
||||||||||
Debt securities available for sale, at fair value |
|
1,476,378 |
|
|
|
1,269,356 |
|
|
|
1,298,073 |
|
|
|
1,217,502 |
|
|
|
1,033,797 |
|
Debt securities held to maturity, at amortized cost (1) |
|
— |
|
|
|
219,613 |
|
|
|
224,014 |
|
|
|
226,645 |
|
|
|
230,254 |
|
Equity securities with readily determinable fair value not held for trading |
|
2,562 |
|
|
|
2,483 |
|
|
|
2,480 |
|
|
|
2,534 |
|
|
|
2,438 |
|
Federal Reserve Bank and Federal Home Loan Bank stock |
|
63,604 |
|
|
|
56,412 |
|
|
|
54,001 |
|
|
|
50,294 |
|
|
|
47,878 |
|
Securities |
|
1,542,544 |
|
|
|
1,547,864 |
|
|
|
1,578,568 |
|
|
|
1,496,975 |
|
|
|
1,314,367 |
|
Loans held for sale, at the lower of cost or fair value (2) |
|
553,941 |
|
|
|
551,828 |
|
|
|
— |
|
|
|
365,219 |
|
|
|
43,257 |
|
Mortgage loans held for sale, at fair value |
|
43,851 |
|
|
|
60,122 |
|
|
|
48,908 |
|
|
|
26,200 |
|
|
|
25,952 |
|
Loans held for investment, gross |
|
6,964,171 |
|
|
|
6,710,961 |
|
|
|
6,957,475 |
|
|
|
6,873,493 |
|
|
|
7,073,387 |
|
Less: Allowance for credit losses |
|
79,890 |
|
|
|
94,400 |
|
|
|
96,050 |
|
|
|
95,504 |
|
|
|
98,773 |
|
Loans held for investment, net |
|
6,884,281 |
|
|
|
6,616,561 |
|
|
|
6,861,425 |
|
|
|
6,777,989 |
|
|
|
6,974,614 |
|
Bank owned life insurance |
|
241,183 |
|
|
|
238,851 |
|
|
|
237,314 |
|
|
|
234,972 |
|
|
|
232,736 |
|
Premises and equipment, net |
|
32,866 |
|
|
|
33,382 |
|
|
|
44,877 |
|
|
|
43,603 |
|
|
|
43,004 |
|
Deferred tax assets, net |
|
41,138 |
|
|
|
48,779 |
|
|
|
48,302 |
|
|
|
55,635 |
|
|
|
63,501 |
|
Operating lease right-of-use assets |
|
100,158 |
|
|
|
100,580 |
|
|
|
117,171 |
|
|
|
118,484 |
|
|
|
116,763 |
|
Goodwill |
|
19,193 |
|
|
|
19,193 |
|
|
|
19,193 |
|
|
|
19,193 |
|
|
|
20,525 |
|
Accrued interest receivable and other assets (3)(4) |
|
250,965 |
|
|
|
220,259 |
|
|
|
202,343 |
|
|
|
256,185 |
|
|
|
202,029 |
|
Total assets |
$ |
10,381,961 |
|
|
$ |
9,747,738 |
|
|
$ |
9,817,772 |
|
|
$ |
9,716,327 |
|
|
$ |
9,345,700 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
|
|
|
|
|
|
|
|
||||||||||
Demand |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest bearing |
$ |
1,482,061 |
|
|
$ |
1,465,140 |
|
|
$ |
1,397,331 |
|
|
$ |
1,426,919 |
|
|
$ |
1,370,157 |
|
Interest bearing |
|
2,389,605 |
|
|
|
2,316,976 |
|
|
|
2,619,115 |
|
|
|
2,560,629 |
|
|
|
2,416,797 |
|
Savings and money market |
|
1,835,700 |
|
|
|
1,723,233 |
|
|
|
1,616,719 |
|
|
|
1,610,218 |
|
|
|
1,457,080 |
|
Time |
|
2,403,578 |
|
|
|
2,310,662 |
|
|
|
2,245,078 |
|
|
|
2,297,097 |
|
|
|
2,302,878 |
|
Total deposits |
|
8,110,944 |
|
|
|
7,816,011 |
|
|
|
7,878,243 |
|
|
|
7,894,863 |
|
|
|
7,546,912 |
|
Advances from the Federal Home Loan Bank |
|
915,000 |
|
|
|
765,000 |
|
|
|
715,000 |
|
|
|
645,000 |
|
|
|
595,000 |
|
Senior notes |
|
59,764 |
|
|
|
59,685 |
|
|
|
59,605 |
|
|
|
59,526 |
|
|
|
59,447 |
|
Subordinated notes |
|
29,582 |
|
|
|
29,539 |
|
|
|
29,497 |
|
|
|
29,454 |
|
|
|
29,412 |
|
Junior subordinated debentures held by trust subsidiaries |
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
|
|
64,178 |
|
Operating lease liabilities (5) |
|
105,875 |
|
|
|
105,861 |
|
|
|
122,267 |
|
|
|
123,167 |
|
|
|
120,665 |
|
Accounts payable, accrued liabilities and other liabilities (6) |
|
193,730 |
|
|
|
173,122 |
|
|
|
210,897 |
|
|
|
164,071 |
|
|
|
210,299 |
|
Total liabilities |
|
9,479,073 |
|
|
|
9,013,396 |
|
|
|
9,079,687 |
|
|
|
8,980,259 |
|
|
|
8,625,913 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
||||||||||
Class A common stock |
|
4,210 |
|
|
|
3,357 |
|
|
|
3,373 |
|
|
|
3,361 |
|
|
|
3,359 |
|
Additional paid in capital |
|
342,508 |
|
|
|
189,601 |
|
|
|
192,237 |
|
|
|
192,701 |
|
|
|
194,103 |
|
Retained earnings |
|
569,131 |
|
|
|
620,299 |
|
|
|
618,359 |
|
|
|
610,802 |
|
|
|
630,933 |
|
Accumulated other comprehensive loss |
|
(12,961 |
) |
|
|
(78,915 |
) |
|
|
(75,884 |
) |
|
|
(70,796 |
) |
|
|
(105,634 |
) |
Total stockholders' equity before noncontrolling interest |
|
902,888 |
|
|
|
734,342 |
|
|
|
738,085 |
|
|
|
736,068 |
|
|
|
722,761 |
|
Noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,974 |
) |
Total stockholders' equity |
|
902,888 |
|
|
|
734,342 |
|
|
|
738,085 |
|
|
|
736,068 |
|
|
|
719,787 |
|
Total liabilities and stockholders' equity |
$ |
10,381,961 |
|
|
$ |
9,747,738 |
|
|
$ |
9,817,772 |
|
|
$ |
9,716,327 |
|
|
$ |
9,345,700 |
|
___________________ | |
(1) |
Estimated fair value of |
(2) |
As of September 30, 2024 and June 30, 2024, includes loans held for sale and a valuation allowance of |
(3) |
As of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, includes derivative assets with a total fair value of |
(4) |
As of September 30, 2024 and June 30, 2024, includes other assets for sale of approximately |
(5) |
Consists of total long-term lease liabilities. Total short-term lease liabilities are included in other liabilities. |
(6) |
As of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, includes derivatives liabilities with a total fair value of |
Exhibit 7 - Loans
Loans by Type - Held For Investment
The loan portfolio held for investment consists of the following loan classes:
(in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Real estate loans |
|
|
|
|
|
|
(audited) |
|
|
|||||
Commercial real estate |
|
|
|
|
|
|
|
|
|
|||||
Non-owner occupied |
$ |
1,709,911 |
|
$ |
1,714,088 |
|
$ |
1,672,470 |
|
$ |
1,616,200 |
|
$ |
1,593,571 |
Multi-family residential |
|
343,012 |
|
|
359,257 |
|
|
349,917 |
|
|
407,214 |
|
|
771,654 |
Land development and construction loans |
|
411,051 |
|
|
343,472 |
|
|
333,198 |
|
|
300,378 |
|
|
301,938 |
|
|
2,463,974 |
|
|
2,416,817 |
|
|
2,355,585 |
|
|
2,323,792 |
|
|
2,667,163 |
Single-family residential |
|
1,485,326 |
|
|
1,446,569 |
|
|
1,490,711 |
|
|
1,466,608 |
|
|
1,371,194 |
Owner occupied |
|
1,013,682 |
|
|
981,405 |
|
|
1,193,909 |
|
|
1,175,331 |
|
|
1,129,921 |
|
|
4,962,982 |
|
|
4,844,791 |
|
|
5,040,205 |
|
|
4,965,731 |
|
|
5,168,278 |
Commercial loans |
|
1,630,309 |
|
|
1,521,533 |
|
|
1,550,140 |
|
|
1,503,187 |
|
|
1,452,759 |
Loans to financial institutions and acceptances |
|
92,489 |
|
|
48,287 |
|
|
29,490 |
|
|
13,375 |
|
|
13,353 |
Consumer loans and overdrafts (1) |
|
278,391 |
|
|
296,350 |
|
|
337,640 |
|
|
391,200 |
|
|
438,997 |
Total loans |
$ |
6,964,171 |
|
$ |
6,710,961 |
|
$ |
6,957,475 |
|
$ |
6,873,493 |
|
$ |
7,073,387 |
|
|
|
|
|
|
|
|
|
|
__________________ | |
(1) |
As of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023 and includes |
Loans by Type - Held For Sale
The loan portfolio held for sale consists of the following loan classes:
(in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Loans held for sale at the lower of cost or fair value |
|
|
|
|
|
|
(audited) |
|
|
|||||
Real estate loans |
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate |
|
|
|
|
|
|
|
|
|
|||||
Non-owner occupied |
$ |
111,591 |
|
$ |
112,002 |
|
$ |
— |
|
$ |
— |
|
$ |
43,256 |
Multi-family residential |
|
915 |
|
|
918 |
|
|
— |
|
|
309,612 |
|
|
— |
Land development and construction loans |
|
35,020 |
|
|
29,923 |
|
|
— |
|
|
55,607 |
|
|
— |
|
|
147,526 |
|
|
142,843 |
|
|
— |
|
|
365,219 |
|
|
43,256 |
Single-family residential |
|
86,905 |
|
|
88,507 |
|
|
— |
|
|
— |
|
|
— |
Owner occupied |
|
221,774 |
|
|
220,718 |
|
|
— |
|
|
— |
|
|
— |
|
|
456,205 |
|
|
452,068 |
|
|
— |
|
|
365,219 |
|
|
43,256 |
Commercial loans |
|
87,866 |
|
|
90,353 |
|
|
— |
|
|
— |
|
|
— |
Consumer loans |
|
9,870 |
|
|
9,407 |
|
|
— |
|
|
— |
|
|
— |
Total loans held for sale at the lower of cost or fair value (1) |
|
553,941 |
|
|
551,828 |
|
|
— |
|
|
365,219 |
|
|
43,256 |
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans held for sale at fair value |
|
|
|
|
|
|
|
|
|
|||||
Land development and construction loans (2) |
|
10,608 |
|
|
7,776 |
|
|
26,058 |
|
|
12,778 |
|
|
6,931 |
Single-family residential (3) |
|
33,243 |
|
|
52,346 |
|
|
22,850 |
|
|
13,422 |
|
|
19,022 |
Total mortgage loans held for sale at fair value (4) |
|
43,851 |
|
|
60,122 |
|
|
48,908 |
|
|
26,200 |
|
|
25,953 |
Total loans held for sale (5) |
$ |
597,792 |
|
$ |
611,950 |
|
$ |
48,908 |
|
$ |
391,419 |
|
$ |
69,209 |
___________________ | |
(1) |
As of September 30, 2024, includes |
(2) |
In the second quarter of 2023, the Company transferred approximately |
(3) |
In each of the fourth and third quarters of 2023, the Company transferred approximately |
(4) |
Loans held for sale in connection with Amerant Mortgage’s ongoing business. |
(5) |
As of September 30, 2024, there were |
Non-Performing Assets
This table shows a summary of our non-performing assets by loan class, which includes non-performing loans, other real estate owned, or OREO, and other repossessed assets at the dates presented. Non-performing loans consist of (i) nonaccrual loans, and (ii) accruing loans 90 days or more contractually past due as to interest or principal.
(in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Non-Accrual Loans |
|
|
|
|
|
|
(audited) |
|
|
|||||
Real Estate Loans |
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate (CRE) |
|
|
|
|
|
|
|
|
|
|||||
Non-owner occupied |
$ |
1,916 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
Multi-family residential |
|
— |
|
|
6 |
|
|
— |
|
|
8 |
|
|
23,344 |
|
|
1,916 |
|
|
6 |
|
|
— |
|
|
8 |
|
|
23,344 |
Single-family residential |
|
13,452 |
|
|
3,726 |
|
|
4,400 |
|
|
2,459 |
|
|
2,533 |
Owner occupied |
|
29,240 |
|
|
26,309 |
|
|
1,958 |
|
|
3,822 |
|
|
2,100 |
|
|
44,608 |
|
|
30,041 |
|
|
6,358 |
|
|
6,289 |
|
|
27,977 |
Commercial loans |
|
68,654 |
|
|
67,005 |
|
|
21,833 |
|
|
21,949 |
|
|
4,713 |
Consumer loans and overdrafts |
|
— |
|
|
4 |
|
|
45 |
|
|
38 |
|
|
1 |
Total Non-Accrual Loans (1) |
$ |
113,262 |
|
$ |
97,050 |
|
$ |
28,236 |
|
$ |
28,276 |
|
$ |
32,691 |
|
|
|
|
|
|
|
|
|
|
|||||
Past Due Accruing Loans(2) |
|
|
|
|
|
|
|
|
|
|||||
Real Estate Loans |
|
|
|
|
|
|
|
|
|
|||||
Owner occupied |
|
— |
|
|
769 |
|
|
— |
|
|
— |
|
|
— |
Single-family residential |
|
1,129 |
|
|
2,656 |
|
|
1,149 |
|
|
5,218 |
|
|
— |
Commercial |
|
104 |
|
|
— |
|
|
918 |
|
|
857 |
— |
|
504 |
Consumer loans and overdrafts |
|
434 |
|
|
477 |
|
|
— |
|
|
49 |
|
|
— |
Total Past Due Accruing Loans |
$ |
1,667 |
|
$ |
3,902 |
|
$ |
2,067 |
|
$ |
6,124 |
|
$ |
504 |
Total Non-Performing Loans |
|
114,929 |
|
|
100,952 |
|
|
30,303 |
|
|
34,400 |
|
|
33,195 |
Other Real Estate Owned |
|
14,509 |
|
|
20,181 |
|
|
20,181 |
|
|
20,181 |
|
|
20,181 |
Total Non-Performing Assets |
$ |
129,438 |
|
$ |
121,133 |
|
$ |
50,484 |
|
$ |
54,581 |
|
$ |
53,376 |
|
|
|
|
|
|
|
|
|
|
___________________ | |
(1) |
See June 30, 2024 Form 10-Q, March 31, 2024 Form 10-Q and 2023 Form 10-K for more information about the activity of non-accrual loans in the second and first quarters of 2024 and all periods in 2023. |
(2) |
Loans past due 90 days or more but still accruing. |
Loans by Credit Quality Indicators
This table shows the Company’s loans by credit quality indicators. The Company has not purchased credit-deteriorated loans.
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(in thousands) |
Special
|
Substandard |
Doubtful |
Total (1) |
|
Special
|
Substandard |
Doubtful |
Total (1) |
|
Special
|
Substandard |
Doubtful |
Total (1) |
||||||||||||
Real Estate Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial Real Estate (CRE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-owner occupied |
$ |
34,374 |
$ |
1,916 |
$ |
— |
$ |
36,290 |
|
$ |
33,979 |
$ |
— |
$ |
— |
$ |
33,979 |
|
$ |
— |
$ |
— |
$ |
— |
$ |
— |
Multi-family residential |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
6 |
|
— |
|
6 |
|
|
— |
|
23,344 |
|
— |
|
23,344 |
Land development and construction loans |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
34,374 |
|
1,916 |
|
— |
|
36,290 |
|
|
33,979 |
|
6 |
|
— |
|
33,985 |
|
|
— |
|
23,344 |
|
— |
|
23,344 |
Single-family residential |
|
— |
|
9,637 |
|
— |
|
9,637 |
|
|
— |
|
3,684 |
|
— |
|
3,684 |
|
|
— |
|
3,085 |
|
— |
|
3,085 |
Owner occupied |
|
29,603 |
|
29,310 |
|
— |
|
58,913 |
|
|
35,642 |
|
26,381 |
|
— |
|
62,023 |
|
|
2,234 |
|
2,180 |
|
— |
|
4,414 |
|
|
63,977 |
|
40,863 |
|
— |
|
104,840 |
|
|
69,621 |
|
30,071 |
|
— |
|
99,692 |
|
|
2,234 |
|
28,609 |
|
— |
|
30,843 |
Commercial loans |
|
12,442 |
|
66,212 |
|
— |
|
78,654 |
|
|
25,671 |
|
67,836 |
|
— |
|
93,507 |
|
|
26,975 |
|
5,732 |
|
3 |
|
32,710 |
Consumer loans and overdrafts |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
1 |
|
— |
|
1 |
Totals |
$ |
76,419 |
$ |
107,075 |
$ |
— |
$ |
183,494 |
|
$ |
95,292 |
$ |
97,907 |
$ |
— |
$ |
193,199 |
|
$ |
29,209 |
$ |
34,342 |
$ |
3 |
$ |
63,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________ | |
(1) |
There were no loans categorized as “loss” as of the dates presented. |
Exhibit 8 - Deposits by Country of Domicile
This table shows the Company’s deposits by country of domicile of the depositor as of the dates presented.
(in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
|
|
|
|
|
|
|
(audited) |
|
|
|||||
Domestic |
$ |
5,553,336 |
|
$ |
5,281,946 |
|
$ |
5,288,702 |
|
$ |
5,430,059 |
|
$ |
5,067,937 |
Foreign: |
|
|
|
|
|
|
|
|
|
|||||
|
|
1,887,282 |
|
|
1,918,134 |
|
|
1,988,470 |
|
|
1,870,979 |
|
|
1,892,453 |
Others |
|
670,326 |
|
|
615,931 |
|
|
601,071 |
|
|
593,825 |
|
|
586,522 |
Total foreign |
|
2,557,608 |
|
|
2,534,065 |
|
|
2,589,541 |
|
|
2,464,804 |
|
|
2,478,975 |
Total deposits |
$ |
8,110,944 |
|
$ |
7,816,011 |
|
$ |
7,878,243 |
|
$ |
7,894,863 |
|
$ |
7,546,912 |
Glossary of Terms and Definitions
- Total gross loans: include loans held for investment net of unamortized deferred loan origination fees and costs, as well as loans held for sale.
- Core deposits: consist of total deposits excluding all time deposits.
- Assets under management and custody: consists of 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.
- Net interest margin, or NIM: defined as net interest income, or NII, divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.
- ROA and Core ROA are calculated based upon the average daily balance of total assets.
- ROE and Core ROE are calculated based upon the average daily balance of stockholders’ equity.
- Total revenue is the result of net interest income before provision for credit losses plus noninterest income.
- Total capital ratio: total stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.
-
Tier 1 capital ratio: 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
at each of all the dates presented.$62.3 million
- Tier 1 leverage ratio: Tier 1 capital divided by quarter to date average assets.
- Common equity tier 1 capital ratio, CET1: Tier 1 capital divided by total risk-weighted assets.
- Tangible common equity ratio: calculated as the ratio of common equity less goodwill and other intangibles divided by total assets less goodwill and other intangible assets. Other intangible assets primarily consist of naming rights and mortgage servicing rights and are included in other assets in the Company’s consolidated balance sheets.
- Tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity: calculated in the same manner described in tangible common equity but also includes unrealized losses on debt securities held to maturity in the balance of common equity and total assets.
- Loans to Deposits ratio: calculated as the ratio of total loans gross divided by total deposits.
- Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans and other real estate owned (“OREO”) properties acquired through or in lieu of foreclosure, and other repossessed assets.
- Non-performing loans include all accruing loans past due by 90 days or more and all nonaccrual loans
- Ratio for net charge-offs/average total loans held for investments: calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for credit losses.
- Other operating expenses: total noninterest expense less salary and employee benefits.
- Efficiency ratio: total noninterest expense divided by the sum of noninterest income and NII.
- The terms of the FHLB advance agreements require the Bank to maintain certain investment securities or loans as collateral for these advances.
- Cost of total deposits: calculated based upon the average balance of total noninterest bearing and interest bearing deposits, which includes time deposits.
- AFS: Available-for-sale debt securities
- HTM: Held-to-maturity debt securities
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023462069/en/
Investors
Laura Rossi
InvestorRelations@amerantbank.com
(305) 460-8728
Media
Alexis Dominguez
MediaRelations@amerantbank.com
(305) 441-8412
Source: Amerant Bancorp Inc.
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