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

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.

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.

 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.

Exhibit 4 - Noninterest Income

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

Exhibit 5 - Noninterest Expense

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

Exhibit 6 - Consolidated Balance Sheets

Exhibit 7 - Loans
Loans by Type - Held For Investment

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

Loans by Type - Held For Sale

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

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.

Loans by Credit Quality Indicators

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