Press Releases

Amerant Reports Third Quarter 2021 Net Income of $17.0 Million, Diluted Earnings Per Share of $0.45

October 20, 2021 at 4:30 PM EDT

Continued Improvement in All Key Performance Metrics Over Prior Quarters

CORAL GABLES, Fla., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Amerant Bancorp Inc. (NASDAQ: AMTB and AMTBB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $17.0 million in the third quarter of 2021, or $0.45 per diluted share, an increase compared to net income attributable to the Company of $16.0 million, or $0.42 per diluted share, in the second quarter of 2021 and net income attributable to the Company of $1.7 million, or $0.04 per diluted share, in the third quarter of 2020. Pre-provision net revenue (“PPNR”)1 was $17.5 million in the third quarter of 2021, an increase from $15.4 million in the second quarter of 2021, and a decrease from $20.1 million in the third quarter of 2020. Core pre-provision net revenue (“Core PPNR”)1 was $18.3 million in the third quarter of 2021, an increase from $16.9 million in the second quarter of 2021, and an increase from $13.4 million in the third quarter of 2020.

Annualized return on assets (“ROA”) and return on equity (“ROE”) were 0.90% and 8.38%, respectively, in the third quarter of 2021, compared to 0.83% and 8.11%, respectively, in the second quarter of 2021, and 0.08% and 0.81%, respectively, in the third quarter of 2020.

Jerry Plush, vice chairman, president and CEO said, ”We are pleased to report continued improvement in our operating results, which reflects the focus our team has placed on achieving the key priorities we set out during our first quarter 2021 earnings call. We have more opportunities in process that, when implemented, will further improve future operating results. The positive momentum we have is evident and we will continue to strive to achieve the high-performance standards we believe we can attain.”

Summary Results

Results of the third quarter ended September 30, 2021 were as follows:

  • Net income was $17.0 million in the third quarter of 2021, up 6.7% from $16.0 million in the second quarter of 2021, and up 900.7% from $1.7 million in the third quarter of 2020. Core net income1 was $17.7 million in the third quarter of 2021 compared to $17.2 million in the second quarter of 2021, and compared to core net loss1 of $3.6 million in the third quarter of 2020.

  • Net Interest Income (“NII”) was $51.8 million, up 3.7% from $50.0 million in the second quarter of 2021, and up 14.3% from $45.3 million in the third quarter of 2020. Net interest margin (“NIM”) was 2.94% in the third quarter of 2021, up 13 basis points from 2.81% in the second quarter of 2021 and up 55 basis points from 2.39% in the third quarter of 2020.

  • Released $5.0 million from the allowance for loan losses (“ALL”) during the third and second quarters of 2021, compared to a provision of $18.0 million recorded in the third quarter of 2020. The ratio of allowance for loan losses to total loans held for investment was 1.59% as of September 30, 2021, down from 1.86% as of June 30, 2021 and down from 1.97% as of September 30, 2020. The ratio of net charge-offs to average total loans in the third quarter of 2021 was 1.16% compared to 0.12% in the second quarter of 2021 and 1.41% in the third quarter of 2020.

  • Noninterest income was $13.4 million in the third quarter of 2021, down 14.6% from $15.7 million in the second quarter of 2021, and down 33.8% from $20.3 million in the third quarter of 2020, as the third quarter of 2020 included higher net gains on sale of securities.

  • Noninterest expense was $48.4 million, down 5.3% from $51.1 million in the second quarter of 2021, and up 6.4% from $45.5 million in the third quarter of 2020.

  • The efficiency ratio was 74.2% in the third quarter of 2021, compared to 77.8% in the second quarter of 2021, and 69.3% for the third quarter of 2020. Core efficiency ratio1 was 72.95% in the third quarter of 2021, compared to 74.45% in the second quarter of 2021, and 76.53% for the third quarter of 2020.

  • Total loans, which include loans held for sale, were $5.5 billion at the close of the third quarter of 2021, down $129.6 million, or 2.3%, compared to the close of the second quarter of 2021. Total deposits were $5.6 billion at the close of the third quarter of 2021, slightly down $48.5 million, or 0.9%, compared to the close of the second quarter of 2021.

  • Stockholders’ book value per common share attributable to the Company increased to $21.68 at September 30, 2021, compared to $21.27 at June 30, 2021. Tangible book value per common share (“TBV”)1 increased to $21.08 as of September 30, 2021, compared to $20.67 at June 30, 2021.

Credit Quality

The ALL was $83.4 million at the close of the third quarter of 2021, compared to $104.2 million at the close of the second quarter of 2021, and $116.8 million at the close of the third quarter of 2020. The Company released $5.0 million from the ALL in both the third and second quarters of 2021, compared to a provision of $18.0 million recorded in the third quarter of 2020. The ALL release during the third quarter of 2021 was primarily attributed to (i) a release of approximately $2 million as a result of upgrades, payoffs and pay downs of non-performing loans and special mention loans, and (ii) a release of approximately $3 million due to lower loan volume and the decision to classify $219 million New York Commercial Real Estate (“CRE”) loans as available for sale at September 30, 2021. These loans are recorded at the lower of their carrying cost or fair value, which did not have an impact to earnings, but resulted in additional loan loss reserve release. The ALL associated with the COVID-19 pandemic remained flat at approximately $14.4 million in the third quarter compared to $14.8 million in the second quarter of 2021, and decreased compared to $26.2 million in the third quarter of 2020.

Net charge-offs during the third quarter of 2021 totaled $15.7 million, compared to $1.8 million in the second quarter of 2021 and $20.8 million in the third quarter of 2020. From the charge-offs in the third quarter of 2021, $5.7 million were in connection with the Coffee Trader relationship. There was no impact to earnings as $16.4 million out of the $17.1 million in charge-offs were reserved for in previous quarters as a result of impairment analysis performed on non-performing loans. The $39.8 million Coffee Trader relationship had an outstanding balance of $13.9 million as of the end of the third quarter of 2021. Charge-offs to date in connection with this relationship total $25.0 million, together with a $0.9 million partial payment received during the third quarter of 2020.

Classified and special mention loans decreased 31.3% and 16.4% compared to the second quarter of 2021, respectively, and 3.8% and 9.8% compared to the third quarter of 2020, respectively.

Non-performing assets totaled $92.5 million at the end of the third quarter of 2021, a decrease of $29.0 million or 23.8%, compared to the second quarter of 2021, and an increase of $6.0 million, or 7.0%, compared to the third quarter of 2020 due to the decrease in classified loans mentioned above. The ratio of non-performing assets to total assets at the end of the third quarter of 2021 was 124 basis points, down 37 basis points from the second quarter of 2021 and up 16 basis points from the third quarter of 2020. In the third quarter of 2021, the ratio of ALL to non-performing loans increased to 100.8%, from 86.0% at June 30, 2021 and decreased from 135.1% at the close of the third quarter of 2020. As previously disclosed, during 2021 the Company obtained independent third-party collateral valuations on over 80% of non-performing loans, which were over $1 million and had real estate as collateral, supporting current ALL levels. No additional loan loss reserves were deemed necessary as a result of these valuations.

Loans and Deposits

Total loans, including loans held for sale, as of September 30, 2021 were $5.5 billion, down $129.6 million, or 2.3%, compared to June 30, 2021. Total loans includes loans held for sale which totaled $224.9 million and $1.8 million as September 30, 2021 and June 30, 2021, respectively. The decrease in total loans was primarily due to loan production being offset by approximately $325 million in prepayments received in CRE and C&I loans and delays in expected closings at the end of the third quarter. During the third quarter of 2021, the Company continued to purchase higher yielding indirect consumer loans. Consumer loans as of September 30, 2021 were $358.5 million, an increase of $47.6 million, or 15.3%, quarter over quarter. The Company purchased approximately $80.3 million of higher-yielding indirect consumer loans during the third quarter of 2021.

Core deposits as of September 30, 2021 were $4.2 billion, an increase of $141.7 million or 3.5%, compared to June 30, 2021. This includes noninterest bearing deposits of $1.21 billion as of September 30, 2021 compared to $1.07 billion as of June 30, 2021. Total deposits as of September 30, 2021 totaled $5.6 billion, slightly down $48.5 million, or 0.9%, compared to June 30, 2021. Domestic deposits totaled $3.1 billion, down $50.0 million, or 1.6%, compared to June 30, 2021, while foreign deposits totaled $2.5 billion, up $1.4 million, or 0.06%, compared to June 30, 2021.

The quarter-over-quarter decline in total deposits was primarily attributable to a reduction of $190.3 million, or 11.7%, in time deposits. Customer CDs compared to the prior quarter decreased $135.5 million, or 10.9%, 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. During the third quarter of 2021 customer transaction account balances increased $185.2 million, or 4.7%, compared to June 30, 2021, with noninterest bearing, savings and money market and interest bearing deposits contributing 79%, 6% and 16% to such growth, respectively. Brokered time deposits decreased $54.8 million, or 14.0%, compared to June 30, 2021, and brokered interest bearing and money market deposits during the third quarter of 2021 decreased $43.5 million, or 30.9%, as we continue to de-emphasize this funding source.

Net Interest Income and Net Interest Margin

Third quarter 2021 NII was $51.8 million, up $1.9 million, or 3.7%, from $50.0 million in the second quarter of 2021 and up $6.5 million, or 14.3%, from $45.3 million in the third quarter of 2020. The quarter-over-quarter increase was primarily driven by (i) lower overall deposit costs resulting from declines in average CD balances, downward repricing of time deposits and increased average balances in noninterest bearing deposits; (ii) higher average loan and investment yields, the first being due to an increase in higher-yielding consumer loans; (iii) higher investment portfolio average balances as the Company began redeploying its excess cash and cash equivalents during the period; and (iv) Lower cost and average balances on FHLB advances and borrowings, following the Company’s repayment and rate modification of FHLB advances in May 2021. Of note, cost of total deposits decreased 8 basis points during the third quarter of 2021 compared to the second quarter of 2021. Partially offsetting the increase in NII were lower average loan balances due to higher prepayment activity and delays in expected closings at the end of the third quarter.

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

NIM was 2.94% in the third quarter of 2021, up 13 basis points from 2.81% in the second quarter of 2021 and up 55 basis points from 2.39% in the third quarter of 2020. In order to contain NIM pressure, during the third quarter of 2021, Amerant continued to focus on (i) decreasing cost of funds via strategic repricing of customer time and commercial relationship money market deposits and (ii) proactively seeking to increase spreads in loan origination.

As of September 30, 2021, Amerant had $290 million of time deposits maturing in the fourth quarter of 2021. This is expected to decrease the average cost of CDs by approximately 5 basis points and the overall cost of deposits by approximately 1bps. Year-to-date, Amerant has been able to retain approximately 60% of maturing CDs via renewals at lower rates or conversion into core deposits.

Noninterest income

In the third quarter of 2021, noninterest income was $13.4 million, down 14.6% from $15.7 million in the second quarter of 2021. The decrease was primarily driven by events that occurred during the second quarter that did not reoccur in the third quarter, including: (i) a net gain of $3.8 million in connection with the sale of $95.1 million of PPP loans in May 2021; (ii) a $2.5 million net loss on early extinguishment of FHLB advances recorded in the second quarter of 2021, as the company repaid $235 million of FHLB advances; and (iii) a $1.3 million in net gain on sale of securities recorded in the second quarter of 2021. Also, contributing to the lower noninterest income was a decrease of $0.8 million in customer derivative income in the third quarter of 2021. The quarter-over-quarter decrease in noninterest income was partially offset by mortgage banking income of $0.7 million and an increase of $0.2 million in fees from brokerage, advisory and fiduciary activities.

Noninterest income decreased $6.9 million, or 33.8%, in the third quarter of 2021 from $20.3 million in the third quarter of 2020. The year-over-year decrease in noninterest income was primarily driven by an $8.6 million decrease in net gains on sale of securities. Partially offsetting the decrease were $0.4 million higher derivative client income and mortgage banking income of $0.7 million. Higher total deposit and service fees as well as fee income from brokerage, advisory and fiduciary activities in the third quarter of 2021 compared to the third quarter of 2020 also contributed to the offset to the decrease in noninterest income year-over-year.

Amerant Mortgage, Inc. (“AMTM”) continues to execute on its growth strategy. In the third quarter of 2021, AMTM received 108 applications and funded 39 loans totaling $17.9 million.

The Company’s assets under management and custody (“AUM”) totaled $2.19 billion as of September 30, 2021, increasing $55.8 million, or 2.6%, from $2.13 billion as of June 30, 2021, and $425.5 million, or 24.1%, from $1.76 billion as of September 30, 2020. The quarter-over-quarter increase in AUMs was mainly driven by net new assets of $40.2 million. The year-over-year increase in AUMs was primarily driven by increased market value and net new assets of $124.2 million. Net new assets represent 72.0% and 29.2% of the quarter-over-quarter and year-over-year increases, respectively, as the Company continues to build on its advisory client-focused and relationship-centric strategy.

Noninterest expense

Third quarter of 2021 noninterest expense was $48.4 million, down $2.7 million, or 5.3%, from $51.1 million in the second quarter of 2021. The decrease was primarily driven by lower salaries and employee benefits expenses due to the $3.3 million in severance expenses that the Company recorded in the second quarter of 2021 and did not reoccur in the third quarter of 2021. Additionally, the third quarter noninterest expense includes lower occupancy and equipment expenses, as the second quarter 2021 results included a non-recurring $0.8 million lease impairment charge in connection with the closing of the NYC Loan Production Office (“LPO”). There were also lower consulting, legal and other professional fees as well as various other noninterest expenses, which also contributed to the decrease quarter over quarter. Partially offsetting the decrease in noninterest expense were higher variable compensation expenses resulting from higher estimated payouts under the Company's variable compensation programs as well as higher salaries and employee benefits expenses in connection with new hires in the mortgage banking business. Higher depreciation and amortization costs related to the closure of the Wellington branch also contributed to the offset to the decrease in noninterest expense.

Noninterest expense in the third quarter of 2021, increased $2.9 million, or 6.4% compared to $45.5 million in the third quarter of 2020. This increase was primarily driven by higher salaries and employee benefits due to increased variable compensation resulting from (i) the new long term incentive program which was launched in February 2021, and (ii) 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. Higher salaries and employee benefits expenses in connection with new hires, primarily in the mortgage banking business, also contributed to the increase in noninterest expense. Additionally, there were higher professional and other services fees, primarily in connection with the onboarding of the new firm as a result of outsourcing of the Company’s internal audit function, as well as other professional fees, increased rent expense due to the leasing of the Beacon operation center (previously owned) in the third quarter of 2021 and higher telecommunication and data processing expenses compared to the third quarter of 2020. Partially offsetting the increase in noninterest expense were lower severance costs and consulting fees during the third quarter of 2021 compared to the third quarter of 2020. Year-to-date, the mortgage business has recorded $3.7 million in noninterest expenses, from which $3.1 million are related to salaries and employee benefits expenses, $0.3 million to professional fees, and the balance to other noninterest expenses.

Restructuring expenses totaled $0.8 million in the third quarter of 2021, compared to $4.2 million in the second quarter of 2021 and $1.8 million in the third quarter of 2020, primarily due to lower staff reduction costs compared to the second quarter of 2021, as well as the second quarter of 2021 including a nonrecurring lease impairment charge on the NYC LPO.

The efficiency ratio was 74.2% in the third quarter of 2021, compared to 77.8% in the second quarter of 2021, and 69.3% in the third quarter of 2020. The quarter-over-quarter improvement in the efficiency ratio was primarily driven by lower severance expenses incurred during the third quarter of 2021. Partially offsetting this improvement were higher salaries and employee benefits in connection with the investment in building the Amerant Mortgage team, as noted above. The year-over-year increase in the efficiency ratio was primarily attributable to higher salaries and employee benefits previously referenced above. Core efficiency ratio1 improved to 72.95% in the third quarter of 2021 compared to 74.45% in the second quarter of 2021 and 76.53% in the third quarter of 2020.

As part of Amerant’s efforts to make banking easier and provide an enhanced banking experience for customers, the Company signed agreements with leading technology platforms, Alloy and ClickSWITCH®, during the third quarter of 2021. Alloy's Application Programming Interface (“API) service will facilitate and automate the customer onboarding process, online and in branches, for both businesses and individuals, enhancing the protocols in place to capture and review customer data for a more efficient compliance process. ClickSWITCH’s platform is expected to improve share of wallet and customer experience by simplifying and radically reducing the time it takes for consumer and small business customers to switch their direct deposits and automatic payments to Amerant.

As part of Amerant’s keen focus on operating efficiency, during the third quarter of 2021 the Company signed a 10-year lease for a 56,494-square-foot office space in the Miramar Park of Commerce, in Miramar, Florida, where it will relocate its operations center by the end of 2022. The Company closed a banking center in Wellington, FL in October 2021. In addition, as Amerant continues to explore potential expansion opportunities within its core footprint, in the third quarter, after finding such an opportunity in downtown Miami, submitted its application to the OCC to open a new branch in this location.

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 September 30, 2021.

Stockholders’ equity attributable to the Company totaled $812.7 million as of September 30, 2021, up $13.6 million, or 1.7%, from $799.1 million as of June 30, 2021. This was primarily driven by net income in the third quarter of 2021, partially offset by the decline of $2.5 million in the fair value of debt securities available for sale, and $1.2 million in Class B shares repurchased by the Company during the third quarter of 2021. Stockholders’ equity attributable to the Company increased $29.2 million, or 3.7%, in the first nine months of 2021 from $783.4 million as of December 31, 2020.This was primarily driven by net income in the first nine months of 2021, partially offset by the decline of $10.2 million in the fair value of debt securities available for sale, and $9.6 million in Class B shares repurchased by the Company during the first nine months of 2021. Book value per common share increased to $21.68 at September 30, 2021 compared to $21.27 at June 30, 2021. TBV1 increased to $21.08 at September 30, 2021 compared to $20.67 at June 30, 2021.

During the third quarter of 2021, the Company continued to demonstrate its commitment to increasing total return to shareholders. As announced during the second quarter of 2021, the Company received a $40 million dividend giving the Company more capacity and flexibility for general corporate purposes, including share repurchases. On September 10, 2021 the board of directors authorized a new share repurchase program, under which the Company may purchase, from time to time, up to $50 million of Class A common stock (the “Class A Repurchase Program”). As of September 30, 2021, the Company had repurchased approximately $9.6 million of Class B shares since the launch of its Class B share repurchase program in March 2021, which was terminated by the Company in September 2021. Additionally, as previously announced on September 13, 2021, the Company intends to effect a clean-up merger (the “Merger”), subject to shareholder approval, providing for (i) each outstanding share of Class B common stock to be automatically converted to 0.95 of a share of Class A common stock and (ii) a new class of non-voting Class A common stock to be created. The Company intends to hold a special shareholders meeting (the “Special Meeting”) on November 15, 2021, to seek approval of the Merger.

Amerant’s liquidity position continues to be strong and includes cash and cash equivalents of $166.2 million at the close of the third quarter of 2021, compared to $171.5 million as of June 30, 2021, and $214.4 million as of December 31, 2020. Additionally, as of September 30, 2021, the Company had $1.4 billion in available borrowing capacity with the FHLB, compared to $1.5 billion in the second quarter of 2021.

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

Third Quarter 2021 Earnings Conference Call

As previously announced, the Company will hold an earnings conference call on Thursday, October 21, 2021 at 9:00 a.m. (Eastern Time) to discuss its third 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 and AMTBB)

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. As of September 30, 2021, the Bank operated 25 banking centers – 18 in South Florida and 7 in Houston, Texas. For more information, visit investor.amerantbank.com.

Alloy is used with permission.

ClickSWITCH® is a registered trademark of ClickSWITCH, LLC. and is used with permission.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements regarding the proposed Merger, the Class A Repurchase Program and the Company’s ability to obtain shareholder approval for the Merger, 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 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 as of and for the three and nine months ended September 30, 2021 and 2020, may not reflect our results of operations for our fiscal year ending, 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 (ROA)”, “core return on equity (ROE)”, and “core efficiency ratio”. This supplemental information is not required by, or are 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 have continued into 2021, including the effect of non-core banking activities such as the sale of loans and securities, and other non-recurring actions intended to improve customer service and operating performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

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

Exhibit 1- Selected Financial Information

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

(in thousands)September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020
Consolidated Balance Sheets         
Total assets$7,489,305 $7,532,844 $7,751,098 $7,770,893 $7,977,047
Total investments1,422,738 1,359,240 1,375,292 1,372,567 1,468,796
Total gross loans (1)5,478,924 5,608,548 5,754,838 5,842,337 5,924,617
Allowance for loan losses83,442 104,185 110,940 110,902 116,819
Total deposits5,626,377 5,674,908 5,678,079 5,731,643 5,877,546
Core deposits (2)4,183,587 4,041,867 3,795,949 3,690,081 3,623,647
Advances from the FHLB and other borrowings809,095 808,614 1,050,000 1,050,000 1,050,000
Senior notes58,815 58,736 58,656 58,577 58,498
Junior subordinated debentures64,178 64,178 64,178 64,178 64,178
Stockholders' equity (3)812,662 799,068 785,014 783,421 829,533
Assets under management and custody (4)2,188,317 2,132,516 2,018,870 1,972,321 1,762,803
          


 Three Months Ended  Nine Months Ended September 30,
(in thousands, except percentages and per share amounts)September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 2021 2020
Consolidated Results of Operations             
Net interest income$51,821   $49,971   $47,569  $48,652  $45,348  $149,361   $140,900  
(Reversal of) provision for loan losses(5,000)  (5,000)      18,000  (10,000)  88,620  
Noninterest income13,434   15,734   14,163  11,515  20,292  43,331   61,955  
Noninterest expense48,404   51,125   43,625  51,629  45,500  143,154   127,107  
Net income (loss) attributable to Amerant Bancorp Inc. (5)17,031   15,962   14,459  8,473  1,702  47,452   (10,195) 
Effective income tax rate24.96 % 22.65 % 20.15% 0.76% 20.47% 22.74 % 20.80 %
              
Common Share Data              
Stockholders' book value per common share$21.68   $21.27   $20.70  $20.70  $19.68  $21.68   $19.68  
Tangible stockholders' equity (book value) per common share (6)$21.08   $20.67   $20.13  $20.13  $19.17  $21.08   $19.17  
Basic earnings (loss) per common share$0.46   $0.43   $0.38  $0.21  $0.04  $1.27   $(0.24) 
Diluted earnings (loss) per common share (7)$0.45   $0.42   $0.38  $0.20  $0.04  $1.26   $(0.24) 
Basic weighted average shares outstanding37,134   37,330   37,618  41,326  41,722  37,359   41,875  
Diluted weighted average shares outstanding (7)37,518   37,693   37,846  41,688  42,065  37,684   41,875  
                         


 Three Months Ended Nine Months Ended September 30,
 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 2021  2020 
Other Financial and Operating Data (8)             
              
Profitability Indicators (%)             
Net interest income / Average total interest earning assets (NIM) (9)2.94% 2.81% 2.66% 2.61% 2.39% 2.81% 2.49 %
Net income (loss) / Average total assets (ROA) (10)0.90% 0.83% 0.76% 0.42% 0.08% 0.83% (0.17)%
Net income (loss) / Average stockholders' equity (ROE) (11)8.38% 8.11% 7.47% 4.09% 0.81% 8.01% (1.62)%
Noninterest income / Total revenue (12)20.59% 23.95% 22.94% 19.14% 30.91% 22.49% 30.54 %
              
Capital Indicators (%)             
Total capital ratio (13)14.53% 14.17% 14.12% 13.96% 14.56% 14.53% 14.56 %
Tier 1 capital ratio (14)13.28% 12.92% 12.87% 12.71% 13.30% 13.28% 13.30 %
Tier 1 leverage ratio (15)11.18% 10.75% 10.54% 10.11% 10.52% 11.18% 10.52 %
Common equity tier 1 capital ratio (CET1) (16)12.31% 11.95% 11.90% 11.73% 12.34% 12.31% 12.34 %
Tangible common equity ratio (17)10.58% 10.35% 9.88% 9.83% 10.16% 10.58% 10.16 %
              
Asset Quality Indicators (%)             
Non-performing assets / Total assets (18)1.24% 1.61% 1.16% 1.13% 1.08% 1.24% 1.08 %
Non-performing loans / Total loans (1) (19)1.51% 2.16% 1.56% 1.50% 1.46% 1.51% 1.46 %
Allowance for loan losses / Total non-performing loans100.84% 86.02% 123.92% 126.46% 135.09% 100.84% 135.09 %
Allowance for loan losses / Total loans held for investment (1)1.59% 1.86% 1.93% 1.90% 1.97% 1.59% 1.97 %
Net charge-offs / Average total loans held for investment (20)1.16% 0.12% % 0.40% 1.41% 0.42% 0.56 %
              
Efficiency Indicators (% except FTE)             
Noninterest expense / Average total assets2.55% 2.67% 2.28% 2.59% 2.24% 2.50% 2.11 %
Salaries and employee benefits / Average total assets1.53% 1.61% 1.38% 1.62% 1.39% 1.51% 1.31 %
Other operating expenses/ Average total assets (21)1.02% 1.06% 0.90% 0.97% 0.85% 0.99% 0.79 %
Efficiency ratio (22)74.18% 77.80% 70.67% 85.81% 69.32% 74.29% 62.66 %
Full-Time-Equivalent Employees (FTEs) (23)733  719  731  713  807  733  807  
                      


 Three Months Ended Nine Months Ended September 30,
(in thousands, except percentages and per share amounts)September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 2021 2020
Core Selected Consolidated Results of Operations and Other Data (6)              
              
Pre-provision net revenue (PPNR)$17,485  $15,397  $18,107  $8,538  $20,140   $50,989  $75,748  
Core pre-provision net revenue (Core PPNR)$18,297  $16,934  $15,765  $17,641  $13,387   $50,996  $53,382  
Core net income (loss)$17,669  $17,199  $12,589  $20,917  $(3,638)  $47,457  $(27,909) 
Core basic earnings (loss) per common share0.48  0.46  0.33  0.50  (0.09)  1.27  (0.67) 
Core earnings (loss) per diluted common share (7)0.47  0.46  0.33  0.50  (0.09)  1.26  (0.67) 
Core net income (loss) / Average total assets (Core ROA) (10)0.93% 0.90% 0.66% 1.05% (0.18)% 0.83% (0.46)%
Core net income (loss) / Average stockholders' equity (Core ROE) (11)8.69% 8.74% 6.50% 10.08% (1.74)% 8.01% (4.42)%
Core efficiency ratio (24)72.95% 74.45% 73.35% 71.02% 76.53 % 73.58% 69.84 %

__________________

(1)  Total loans include loans held for investment net of unamortized deferred loan origination fees and costs. In addition, at September 30, 2021 and March 31, 2021, total loans include $219.1 million and $1.0 million, respectively, in loans held for sale carried at the lower of cost or estimated fair value. In addition, as of September 30, 2021 and June 30, 2021, total loans include $5.8 million and $1.8 million, respectively, in mortgage loans held for sale carried at fair value.
(2)Core deposits consist of total deposits excluding all time deposits.
(3)On March 10, 2021, the Company’s Board of Directors approved a stock repurchase program which provides for the potential repurchase of up to $40 million of shares of the Company’s Class B common stock (the “2021 Stock Repurchase Program”). In the third, second and first quarters of 2021, the Company repurchased an aggregate of 63,000, 386,195 and 116,037 shares of Class B common stock, respectively, at a weighted average price per share of $18.55, $16.62 and $15.98, respectively, under the 2021 Stock Repurchase Program. In the fourth quarter of 2020, the Company completed a modified “Dutch auction” tender offer to purchase, for cash, up to $50.0 million of shares of its Class B common stock, and accepted to purchase 4,249,785 shares of Class B common stock in the tender offer at a price of $12.55 per share. The purchase price for this transaction was approximately $54.1 million, including $0.8 million in related fees and other expenses.
(4)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.
(5)In the three months ended September 30, 2021 and June 30, 2021, and in the nine months ended September 30, 2021, net income exclude losses of $0.6 million, $0.8 million and $1.5 million, respectively, attributable to a 49% minority interest of Amerant Mortgage LLC. We had no minority interest at any of the other periods shown.
(6)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.
(7)In the three months ended September 30, 2021 and June 30, 2021 and in the nine months ended September 30, 2021, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance share units (restricted stock and restricted stock units for all of the other periods shown). For the nine months ended September 30, 2020, potential dilutive instruments were not included in the diluted earnings per share computation because the Company reported a net loss and their inclusion would have an antidilutive effect. For all other periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.
(8)Operating data for the periods presented have been annualized.
(9)NIM is defined as NII divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.
(10)Calculated based upon the average daily balance of total assets.
(11)Calculated based upon the average daily balance of stockholders’ equity.
(12)Total revenue is the result of net interest income before provision for loan losses plus noninterest income.
(13)Total stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.
(14)Tier 1 capital divided by total risk-weighted assets. Tier 1 capital is composed of Common Equity Tier 1 (CET1) capital plus outstanding qualifying trust preferred securities of $62.3 million at each of all the dates presented.
(15)Tier 1 capital divided by quarter to date average assets.
(16)CET1 capital divided by total risk-weighted assets.
(17)Tangible common equity is calculated as the ratio of common equity less goodwill and other intangibles divided by total assets less goodwill and other intangible assets. Other intangibles assets consist of, among other things, mortgage servicing rights and are included in other assets in the Company’s consolidated balance sheets.
(18)Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans, restructured loans that are considered “troubled debt restructurings” or “TDRs”, and OREO properties acquired through or in lieu of foreclosure.
(19)Non-performing loans include all accruing loans past due by 90 days or more, all nonaccrual loans and restructured loans that are considered TDRs.
(20)Calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for loan losses. During the third and second quarters of 2021, there were net charge offs of $15.7 million and $1.8 million, respectively. In the first quarter of 2021, there were zero net charge offs. During the third quarters of 2021 and 2020, the Company charged off $5.7 million and $19.3 million, respectively, against the allowance for loan losses as result of the deterioration of one commercial loan relationship.
(21)Other operating expenses is the result of total noninterest expense less salary and employee benefits.
(22)Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and NII.
(23)As of September 30, 2021 and June 30, 2021, includes 52 and 38 FTEs for Amerant Mortgage LLC, respectively.
(24) Core efficiency ratio is the efficiency ratio less the effect of restructuring costs and other adjustments, described in Exhibit 2 - Non-GAAP Financial Measures Reconciliation.
  


Exhibit 2- Non-GAAP Financial Measures Reconciliation

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

 Three Months Ended, Nine Months Ended September 30,
(in thousands)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020 20212020
         
         
Net income (loss) attributable to Amerant Bancorp Inc.$17,031  $15,962  $14,459  $8,473  $1,702   $47,452  $(10,195) 
Plus: (reversal of) provision for loan losses(5,000) (5,000)     18,000   (10,000) 88,620  
Plus: provision for income tax expense (benefit)5,454  4,435  3,648  65  438   13,537  (2,677) 
Pre-provision net revenue (PPNR)17,485  15,397  18,107  8,538  20,140   50,989  75,748  
         
Plus: restructuring costs before income tax effect758  4,164  240  8,407  1,846   5,162  3,518  
Less: non-routine noninterest income items54  (2,627) (2,582) 696  (8,599)  (5,155) (25,884) 
Core pre-provision net revenue$18,297  $16,934  $15,765  $17,641  $13,387   $50,996  $53,382  
         
Total noninterest income$13,434  $15,734  $14,163  $11,515  $20,292   $43,331  $61,955  
Less: Non-routine noninterest income items:        
Loss on sale of the Beacon operations center (1)      (1,729)        
Securities (loss) gains, net(54) 1,329  2,582  1,033  8,599   3,857  25,957  
Loss on early extinguishment of FHLB advances, net  (2,488)        (2,488) (73) 
Gain on sale of loans  3,786         3,786    
Total non-routine noninterest income items$(54) $2,627  $2,582  $(696) $8,599   $5,155  $25,884  
Core noninterest income$13,488  $13,107  $11,581  $12,211  $11,693   $38,176  $36,071  
Total noninterest expenses$48,404  $51,125  $43,625  $51,629  $45,500   $143,154  $127,107  
Less: restructuring costs (2):        
Staff reduction costs (3)250  3,322  6  5,345  646   3,578  1,060  
Legal and Consulting fees412           412    
Digital transformation expenses96  32  234  658  1,200   362  2,458  
Lease impairment charge  810         810    
Branch closure expenses      2,404         
Total restructuring costs$758  $4,164  $240  $8,407  $1,846   $5,162  $3,518  
Core noninterest expenses$47,646  $46,961  $43,385  $43,222  $43,654   $137,992  $123,589  
         
         
         
(in thousands, except percentages and per share amounts)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020 20212020
Net income (loss) attributable to Amerant Bancorp Inc.$17,031  $15,962  $14,459  $8,473  $1,702   $47,452  $(10,195) 
Plus after-tax restructuring costs:        
Restructuring costs before income tax effect758  4,164  240  8,407  1,846   5,162  3,518  
Income tax effect (4)(229) (897) (48) (6,455) (385)  (1,174) (732) 
Total after-tax restructuring costs529  3,267  192  1,952  1,461   3,988  2,786  
Less before-tax non-routine items in noninterest income:54  (2,627) (2,582) 696  (8,599)  (5,155) (25,884) 
Income tax effect (4)55  597  520  9,796  1,798   1,172  5,384  
Total after-tax non-routine items in noninterest income109  (2,030) (2,062) 10,492  (6,801)  (3,983) (20,500) 
Core net income (loss) $17,669  $17,199  $12,589  $20,917  $(3,638)  $47,457  $(27,909) 
         
Basic earnings (loss) per share$0.46  $0.43  $0.38  $0.21  $0.04   $1.27  $(0.24) 
Plus: after tax impact of restructuring costs0.02  0.09  0.01  0.04  0.04   0.11  0.06  
Less: after tax impact of non-routine items in noninterest income  (0.06) (0.06) 0.25  (0.17)  (0.11) (0.49) 
Total core basic earnings (loss) per common share$0.48  $0.46  $0.33  $0.50  $(0.09)  $1.27  $(0.67) 
         
Diluted earnings (loss) per share (5)$0.45  $0.42  $0.38  $0.20  $0.04   $1.26  $(0.24) 
Plus: after tax impact of restructuring costs0.02  0.09  0.01  0.05  0.04   0.11  0.06  
Less: after tax impact of non-routine items in noninterest income  (0.05) (0.06) 0.25  (0.17)  (0.11) (0.49) 
Total core diluted earnings (loss) per common share$0.47  $0.46  $0.33  $0.50  $(0.09)  $1.26  $(0.67) 
         
Net income (loss) / Average total assets (ROA)0.90 %0.83 %0.76 %0.42 %0.08 % 0.83 %(0.17)%
Plus: after tax impact of restructuring costs0.02 %0.17 %0.01 %0.11 %0.08 % 0.07 %0.05 %
Less: after tax impact of non-routine items in noninterest income0.01 %(0.10)%(0.11)%0.52 %(0.34)% (0.07)%(0.34)%
Core net income (loss) / Average total assets (Core ROA)0.93 %0.90 %0.66 %1.05 %(0.18)% 0.83 %(0.46)%
         
Net income (loss) / Average stockholders' equity (ROE)8.38 %8.11 %7.47 %4.09 %0.81 % 8.01 %(1.62)%
Plus: after tax impact of restructuring costs0.26 %1.66 %0.10 %0.94 %0.70 % 0.67 %0.45 %
Less: after tax impact of non-routine items in noninterest income0.05 %(1.03)%(1.07)%5.05 %(3.25)% (0.67)%(3.25)%
Core net income (loss) / Average stockholders' equity (Core ROE)8.69 %8.74 %6.50 %10.08 %(1.74)% 8.01 %(4.42)%
         
Efficiency ratio74.18 %77.81 %70.67 %85.81 %69.32 % 74.29 %62.66 %
Less: impact of restructuring costs(1.16)%(6.34)%(0.39)%(13.97)%(2.81)% (2.68)%(1.74)%
Plus: impact of non-routine items in noninterest income(0.07)%2.98 %3.07 %(0.82)%10.02 % 1.97 %8.92 %
Core efficiency ratio72.95 %74.45 %73.35 %71.02 %76.53 % 73.58 %69.84 %
                       


 Three Months Ended, Nine Months Ended September 30,
(in thousands, except percentages and per share amounts)September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020 20212020
         
Stockholders' equity$812,662  $799,068  $785,014  $783,421  $829,533   $812,662  $829,533  
Less: goodwill and other intangibles (6)(22,529) (22,505) (21,515) (21,561) (21,607)  (22,529) (21,607) 
Tangible common stockholders' equity$790,133  $776,563  $763,499  $761,860  $807,926   $790,133  $807,926  
Total assets7,489,305  7,532,844  7,751,098  7,770,893  7,977,047   7,489,305  7,977,047  
Less: goodwill and other intangibles (6)(22,529) (22,505) (21,515) (21,561) (21,607)  (22,529) (21,607) 
Tangible assets$7,466,776  $7,510,339  $7,729,583  $7,749,332  $7,955,440   $7,466,776  $7,955,440  
Common shares outstanding37,487  37,563  37,922  37,843  42,147   37,487  42,147  
Tangible common equity ratio10.58 %10.34 %9.88 %9.83 %10.16 % 10.58 %10.16 %
Stockholders' book value per common share$21.68  $21.27  $20.70  $20.70  $19.68   $21.68  $19.68  
Tangible stockholders' book value per common share$21.08  $20.67  $20.13  $20.13  $19.17   $21.08  $19.17  

____________

(1)  The Company leased-back the property for a 2-year term.
(2)Expenses incurred for actions designed to implement the Company’s strategy as a new independent company. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation of new technology system applications, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities.
(3)In the second quarter of 2021, includes expenses in connection with the departure of the Company’s Chief Operating Officer and the elimination of various other support function positions, including the NYC LPO. In the fourth quarter of 2020, the Board of Directors of the Company adopted a voluntary early retirement plan for certain eligible long-term employees and an involuntary severance plan for certain other positions consistent with the Company’s effort to streamline operations and better align its operating structure with its business activities. 31 employees elected to participate in the voluntary plan, all of whom retired on or before December 31, 2020. The involuntary plan impacted 31 employees most of whom no longer worked for the Company and/or its subsidiaries by December 31, 2020. On December 28, 2020, the Company determined the termination costs and annual savings related to the voluntary and involuntary plans. The Company incurred approximately $3.5 million and $1.8 million in one-time termination costs in the fourth quarter of 2020 in connection with the voluntary and involuntary plans, respectively, the majority of which will be paid over time in the form of installment payments until December 2021. The Company estimates that the voluntary and involuntary plans will yield estimated annual savings of approximately $4.2 million and $5.5 million, respectively, for combined estimated annual savings of approximately $9.7 million beginning in 2021.
(4)In the nine months ended September 30,2021 and 2020, and in the three months ended March 31, 2021, amounts were calculated based upon the effective tax rate for the periods of 22.74%, 20.80% and 20.15%, respectively. For all of the other periods shown, amounts represent the difference between the prior and current period year-to-date tax effect.
(5)In the three months ended September 30, 2021 and June 30, 2021 and in the nine months ended September 30, 2021, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance share units (restricted stock and restricted stock units for all of the other periods shown). For the nine months ended September 30, 2020, potential dilutive instruments were not included in the diluted earnings per share computation because the Company reported a net loss and their inclusion would have an antidilutive effect. For all other periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.
(6)Other intangibles assets consist of, among other things, mortgage servicing rights of $0.6 million and $0.5 million at September 30, 2021 and June 30 2021, respectively, and are included in other assets in the Company’s consolidated balance sheets.
  


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

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

 Three Months Ended
 September 30, 2021 June 30, 2021 September 30, 2020
(in thousands, except percentages) Average
Balances
Income/
Expense
Yield/
Rates
 Average BalancesIncome/ ExpenseYield/ Rates Average
Balances
Income/
Expense
Yield/
Rates
Interest-earning assets:           
Loan portfolio, net (1)(2)$5,379,461 $53,193 3.92% $5,526,727 $53,612 3.89% $5,768,471 $52,736 3.64%
Debt securities available for sale (3)1,221,569 7,055 2.29% 1,180,766 6,393 2.17% 1,409,768 8,096 2.28%
Debt securities held to maturity (4)102,574 508 1.96% 97,208 481 1.98% 63,844 324 2.02%
Debt securities held for trading153 1 2.59% 258 2 3.11%   %
Equity securities with readily determinable fair value not held for trading24,017 66 1.09% 24,010 75 1.25% 24,447 103 1.68%
Federal Reserve Bank and FHLB stock47,682 514 4.28% 51,764 548 4.25% 64,998 597 3.65%
Deposits with banks207,504 76 0.15% 239,951 62 0.10% 225,320 61 0.11%
Total interest-earning assets6,982,960 61,413 3.49% 7,120,684 61,173 3.45% 7,556,848 61,917 3.26%
Total non-interest-earning assets less allowance for loan losses553,505    559,807    526,065   
Total assets$7,536,465    $7,680,491    $8,082,913   
                  


 Three Months Ended
 September 30, 2021 June 30, 2021 September 30, 2020
(in thousands, except percentages) Average
Balances
Income/
Expense
Yield/
Rates
 Average BalancesIncome/ ExpenseYield/ Rates Average
Balances
Income/
Expense
Yield/
Rates
Interest-bearing liabilities:           
Checking and saving accounts -           
Interest bearing DDA$1,290,944 $147 0.05% $1,292,612 $123 0.04% $1,193,920 $97 0.03%
Money market1,359,774 798 0.23% 1,310,133 931 0.29% 1,154,795 1,190 0.41%
Savings329,456 11 0.01% 373,723 14 0.02% 321,657 88 0.11%
Total checking and saving accounts2,980,174 956 0.13% 2,976,468 1,068 0.14% 2,670,372 1,375 0.20%
Time deposits1,555,001 5,302 1.35% 1,789,517 6,327 1.42% 2,367,534 10,874 1.83%
Total deposits4,535,175 6,258 0.55% 4,765,985 7,395 0.62% 5,037,906 12,249 0.97%
Securities sold under agreements to repurchase  % 440 1 0.91%   %
Advances from the FHLB and other borrowings (5)808,860 1,777 0.87% 922,050 2,255 0.98% 1,050,000 2,820 1.07%
Senior notes58,776 942 6.36% 58,697 942 6.44% 58,460 942 6.41%
Junior subordinated debentures64,178 615 3.80% 64,178 609 3.81% 64,178 558 3.46%
Total interest-bearing liabilities5,466,989 9,592 0.70% 5,811,350 11,202 0.77% 6,210,544 16,569 1.06%
Non-interest-bearing liabilities:           
Non-interest bearing demand deposits1,110,353    937,275    936,349   
Accounts payable, accrued liabilities and other liabilities152,528    142,226    102,864   
Total non-interest-bearing liabilities1,262,881    1,079,501    1,039,213   
Total liabilities6,729,870    6,890,851    7,249,757   
Stockholders’ equity806,595    789,640    833,156   
Total liabilities and stockholders' equity$7,536,465    $7,680,491    $8,082,913   
Excess of average interest-earning assets over average interest-bearing liabilities$1,515,971    $1,309,334    $1,346,304   
Net interest income $51,821    $49,971    $45,348  
Net interest rate spread  2.79%   2.68%   2.20%
Net interest margin (6)  2.94%   2.81%   2.39%
Cost of total deposits (7)  0.44%   0.52%   0.82%
Ratio of average interest-earning assets to average interest-bearing liabilities127.73%   122.53%   121.68%  
Average non-performing loans/ Average total loans1.94%   1.84%   1.43%  
               


 Nine Months Ended
 September 30, 2021 September 30, 2020
(in thousands, except percentages) Average
Balances
Income/
Expense
Yield/
Rates
 Average BalancesIncome/ ExpenseYield/ Rates
Interest-earning assets:       
Loan portfolio, net (1)(2)$5,527,228 $159,576 3.86% $5,685,187 $166,007 3.90%
Debt securities available for sale (3)1,202,191 19,943 2.22% 1,501,200 26,876 2.39%
Debt securities held to maturity (4)89,298 1,291 1.93% 68,169 1,032 2.02%
Debt securities held for trading172 4 3.11%   %
Equity securities with readily determinable fair value not held for trading24,084 225 1.25% 24,268 355 1.95%
Federal Reserve Bank and FHLB stock54,291 1,687 4.15% 68,650 2,550 4.96%
Deposits with banks217,611 189 0.12% 204,269 579 0.38%
Total interest-earning assets7,114,875 182,915 3.44% 7,551,743 197,399 3.49%
Total non-interest-earning assets less allowance for loan losses538,137    508,863   
Total assets$7,653,012    $8,060,606   
        
Interest-bearing liabilities:       
Checking and saving accounts -       
Interest bearing DDA$1,298,674 $383 0.04% $1,132,553 $336 0.04%
Money market1,302,431 2,695 0.28% 1,134,627 5,960 0.70%
Savings323,785 39 0.02% 321,661 153 0.06%
Total checking and saving accounts2,924,890 3,117 0.14% 2,588,841 6,449 0.33%
Time deposits1,765,555 18,989 1.44% 2,437,353 36,764 2.01%
Total deposits4,690,445 22,106 0.63% 5,026,194 43,213 1.15%
Securities sold under agreements to repurchase147 1 0.91% 158  %
Advances from the FHLB and other borrowings (5)926,087 6,790 0.98% 1,135,931 10,342 1.22%
Junior subordinated debentures64,178 1,831 3.81% 67,149 1,918 3.82%
Senior notes58,697 2,826 6.44% 21,334 1,026 6.42%
Total interest-bearing liabilities5,739,554 33,554 0.78% 6,250,766 56,499 1.21%
Non-interest-bearing liabilities:       
Non-interest bearing demand deposits991,635    867,527   
Accounts payable, accrued liabilities and other liabilities129,407    99,510   
Total non-interest-bearing liabilities1,121,042    967,037   
Total liabilities6,860,596    7,217,803   
Stockholders’ equity792,416    842,803   
Total liabilities and stockholders' equity$7,653,012    $8,060,606   
Excess of average interest-earning assets over average interest-bearing liabilities$1,375,321    $1,300,977   
Net interest income $149,361    $140,900  
Net interest rate spread  2.66%   2.28%
Net interest margin (6)  2.81%   2.49%
Cost of total deposits (7)  0.52%   0.98%
Ratio of average interest-earning assets to average interest-bearing liabilities123.96%   120.81%  
Average non-performing loans/ Average total loans1.77%   0.97%  
          

_______________

(1)  Includes loans held for investment net of the allowance for loan losses and loans held for sale.
(2)Average non-performing loans of $106.5 million, $103.6 million and $84.4 million for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and $99.8 million and $55.9 million in the nine months ended September 30, 2021 and 2020, respectively, are included in the average loan portfolio, net. Interest income that would have been recognized on these non-performing loans totaled $2.3 million, $0.9 million and $1.0 million, in the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and $4.0 million and $2.0 million in the nine months ended September 30, 2021 and 2020, respectively.
(3)Includes nontaxable securities with average balances of $19.5 million, $27.3 million and $56.0 million for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and $46.8 million and $55.9 million in the nine months ended September 30, 2021 and 2020, respectively. The tax equivalent yield for these nontaxable securities was 1.51%, 2.15% and 3.59% for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and 2.09% and 3.74% for the nine months ended September 30, 2021 and 2020, respectively. In 2021 and 2020, the tax equivalent yields were calculated by assuming a 21% tax rate and dividing the actual yield by 0.79.  
(4)Includes nontaxable securities with average balances of $65.1 million, $52.2 million and $63.8 million for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and $58.0 million and $68.2 million in the nine months ended September 30, 2021 and 2020, respectively. The tax equivalent yield for these nontaxable securities was 2.37%, 2.19% and 2.55% for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and 2.32% and 2.56% for the nine months ended September 30, 2021 and 2020, respectively. In 2021 and 2020, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.  
(5)The terms of the FHLB advance agreements require the Bank to maintain certain investment securities or loans as collateral for these advances.  
(6)NIM is defined as net interest income divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.  
(7)Calculated based upon the average balance of total noninterest bearing and interest bearing deposits.
  


Exhibit 4 - Noninterest Income

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

 Three Months Ended  Nine Months Ended September 30,
 September 30, 2021 June 30, 2021 September 30, 2020 2021 2020
(in thousands, except percentages)Amount %  Amount %  Amount% Amount% Amount%
        
Deposits and service fees$4,303  32.0 % $4,284  27.2 % $3,937 19.4% $12,693  29.3 % $11,665  18.8 %
Brokerage, advisory and fiduciary activities4,595  34.2 % 4,431  28.2 % 4,272 21.1% 13,629  31.5 % 12,730  20.6 %
Change in cash surrender value of bank owned life insurance (“BOLI”)(1)1,369  10.2 % 1,368  8.7 % 1,437 7.1% 4,093  9.5 % 4,278  6.9 %
Cards and trade finance servicing fees541  4.0 % 388  2.5 % 345 1.7% 1,268  2.9 % 1,013  1.6 %
Loss on early extinguishment of FHLB advances, net   % (2,488) (15.8)%  % (2,488) (5.7)% (73) (0.1)%
Securities (losses) gains, net (2)(54) (0.4)% 1,329  8.5 % 8,600 42.4% 3,857  8.9 % 25,957  41.9 %
Other noninterest income (3)2,680  20.0 % 6,422  40.7 % 1,701 8.3% 10,279  23.6 % 6,385  10.3 %
Total noninterest income$13,434  100.0 % $15,734  100.0 % $20,292 100.0% $43,331  100.0 % $61,955  100.0 %

__________________

(1)  Changes in cash surrender value of BOLI are not taxable.
(2)Includes net gain on sale of securities of $36 thousand, $1.3 million and $8.6 million during the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and unrealized losses of $0.1 million, unrealized gains of $22.0 thousand, and unrealized losses of $44 thousand during the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, related to the change in market value of mutual funds.
(3)Includes: (i) mortgage banking revenue related to Amerant Mortgage of $0.7 million and $0.8 million in the three and nine months ended September 30, 2021, respectively; (ii) income from derivative transactions with customers of $0.5 million, $1.3 million and $27 thousand in the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and (iii) a gain of $3.8 million on the sale of PPP loans in the three months ended June 30, 2021. In addition, includes rental income, income from foreign currency exchange transactions with customers, and valuation income on the investment balances held in the non-qualified deferred compensation plan.
  


Exhibit 5 - Noninterest Expense

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

 Three Months Ended Nine Months Ended September 30,
 September 30, 2021 June 30, 2021 September 30, 2020 2021 2020
(in thousands, except percentages)Amount %  Amount %  Amount %  Amount% Amount%
        
Salaries and employee benefits (1)$29,053 60.0% $30,796 60.2% $28,268 62.1% $86,276 60.3% $79,164 62.3%
Occupancy and equipment (2)4,769 9.9% 5,342 10.4% 4,281 9.4% 14,599 10.2% 12,304 9.7%
Professional and other services fees (3)4,184 8.6% 4,693 9.2% 3,403 7.5% 12,661 8.8% 10,322 8.1%
Telecommunications and data processing3,810 7.9% 3,515 6.9% 3,228 7.1% 11,052 7.7% 9,849 7.8%
Depreciation and amortization2,091 4.3% 1,872 3.7% 1,993 4.4% 5,749 4.0% 5,912 4.7%
FDIC assessments and insurance1,626 3.4% 1,702 3.3% 1,898 4.2% 5,083 3.6% 4,256 3.4%
Other operating expenses (4)2,871 5.9% 3,205 6.3% 2,429 5.3% 7,734 5.4% 5,300 4.0%
Total noninterest expense (5)$48,404 100.0% $51,125 100.0% $45,500 100.0% $143,154 100.0% $127,107 100.0%

___________

(1)  Includes severance expense of $0.3 million, $3.3 million, $0.6 million in three months ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively, mainly related to the elimination of various support function positions in the three months ended September 30, 2021 and 2020, and in connection with the departure of the Company’s COO and other actions in the three months ended June 30, 2021. In addition, includes $0.8 million and $1.0 million in the three months ended September 30, 2021 and June 30, 2021, respectively, in connection with a Long Term Incentive Compensation Program adopted in the first quarter of 2021.
(2)Includes $0.8 million of ROU asset impairment associated with lease in NYC for loan production office in the three months ended June 30, 2021.
(3)Other services fees include expenses on derivative contracts.
(4)Includes advertising, marketing, charitable contributions, community engagement, postage and courier expenses, provisions for possible losses on contingent loans, and debits which mirror the valuation income on the investment balances held in the non-qualified deferred compensation plan in order to adjust the liability to participants of the deferred compensation plan.
(5)Includes $2.1 million and $3.5 million in the three and nine month periods ended September 30, 2021, respectively and $1.1 million in the three months ended June 30, 2021, respectively, related to Amerant Mortgage, mainly salaries and employee benefits and professional and other services fees.
  


Exhibit 6 - Consolidated Balance Sheets

(in thousands, except share data)September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020
Assets         
Cash and due from banks$27,501  $45,198  $37,744 $30,179 $34,091
Interest earning deposits with banks138,732  126,314  195,755 184,207 193,069
Cash and cash equivalents166,233  171,512  233,499 214,386 227,160
Securities         
Debt securities available for sale1,220,391  1,194,068  1,190,201 1,225,083 1,317,724
Debt securities held to maturity130,543  93,311  104,657 58,127 61,676
Trading securities194  198    
Equity securities with readily determinable fair value not held for trading23,870  23,988  23,965 24,342 24,381
Federal Reserve Bank and Federal Home Loan Bank stock47,740  47,675  56,469 65,015 65,015
Securities1,422,738  1,359,240  1,375,292 1,372,567 1,468,796
Loans held for sale, at lower of cost or fair value219,083      
Mortgage loans held for sale, at fair value5,812  1,775  1,044  
Loans held for investment, gross5,254,029  5,606,773  5,753,794 5,842,337 5,924,617
Less: Allowance for loan losses83,442  104,185  110,940 110,902 116,819
Loans held for investment, net5,170,587  5,502,588  5,642,854 5,731,435 5,807,798
Bank owned life insurance221,640  220,271  218,903 217,547 216,130
Premises and equipment, net108,885  108,708  109,071 109,990 126,895
Deferred tax assets, net9,861  13,516  15,607 11,691 16,206
Goodwill19,506  19,506  19,506 19,506 19,506
Accrued interest receivable and other assets (1)144,960  135,728  135,322 93,771 94,556
Total assets$7,489,305  $7,532,844  $7,751,098 $7,770,893 $7,977,047
Liabilities and Stockholders' Equity         
Deposits         
Demand         
Noninterest bearing$1,210,154  $1,065,622  $977,595 $872,151 $916,889
Interest bearing1,317,938  1,293,626  1,324,127 1,230,054 1,210,639
Savings and money market1,655,495  1,682,619  1,494,227 1,587,876 1,496,119
Time1,442,790  1,633,041  1,882,130 2,041,562 2,253,899
Total deposits5,626,377  5,674,908  5,678,079 5,731,643 5,877,546
Advances from the Federal Home Loan Bank809,095  808,614  1,050,000 1,050,000 1,050,000
Senior notes58,815  58,736  58,656 58,577 58,498
Junior subordinated debentures held by trust subsidiaries64,178  64,178  64,178 64,178 64,178
Accounts payable, accrued liabilities and other liabilities (1)118,178  127,340  115,171 83,074 97,292
Total liabilities6,676,643  6,733,776  6,966,084 6,987,472 7,147,514
          
Stockholders’ equity         
Class A common stock2,903  2,904  2,904 2,882 2,886
Class B common stock847  853  892 904 1,329
Additional paid in capital299,273  299,547  304,448 305,569 359,553
Retained earnings489,854  472,823  456,861 442,402 433,929
Accumulated other comprehensive income21,236  23,758  19,909 31,664 31,836
Total stockholders' equity before noncontrolling interest814,113  799,885  785,014 783,421 829,533
Noncontrolling interest(1,451) (817)   
Total stockholders' equity812,662  799,068  785,014 783,421 829,533
Total liabilities and stockholders' equity$7,489,305  $7,532,844  $7,751,098 $7,770,893 $7,977,047
          

__________

(1)  As of September 30, 2021, June, 30 2021 and March 31, 2021, includes the effect of adopting ASU 2016-02 (Leases) in the first quarter of 2021.
  


Exhibit 7 - Loans

Loans by Type - Held For Investment

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

(in thousands)September 30,
2021
 June 30,
2021
 March 31,
2021
 December 31,
2020
 September 30,
2020
Real estate loans         
Commercial real estate         
Non-owner occupied$1,593,664 $1,699,876 $1,713,967 $1,749,839 $1,797,230
Multi-family residential504,337 658,022 722,783 737,696 853,159
Land development and construction loans318,449 361,077 351,502 349,800 335,184
 2,416,450 2,718,975 2,788,252 2,837,335 2,985,573
Single-family residential618,139 616,545 625,298 639,569 597,280
Owner occupied936,590 943,342 940,126 947,127 937,946
 3,971,179 4,278,862 4,353,676 4,424,031 4,520,799
Commercial loans910,696 1,003,411 1,104,594 1,154,550 1,197,156
Loans to financial institutions and acceptances13,690 13,672 16,658 16,636 16,623
Consumer loans and overdrafts358,464 310,828 278,866 247,120 190,039
Total loans$5,254,029 $5,606,773 $5,753,794 $5,842,337 $5,924,617
               

Loans by Type - Held For Sale

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

(in thousands)September 30,
2021
 June 30,
2021
 March 31,
2021
 December 31,
2020
 September 30,
2021
Real estate loans         
Commercial real estate         
Non-owner occupied$160,034  $  $  $  $ 
Multi-family residential57,725         
 217,759         
Single-family residential5,812  1,775  1,044     
Owner occupied1,324         
Total loans held for sale (1)(2)$224,895  $1,775  $1,044  $  $ 

__________________

(1)  At September 30, 2021 and March 31, 2021, total loans include $219.1 million and $1.0 million, respectively, in loans held for sale carried at the lower of cost or estimated fair value. In addition, as of September 30, 2021 and June 30, 2021, total loans include $5.8 million and $1.8 million, respectively, in mortgage loans held for sale carried at fair value.
(2)Remained current and in accrual status at each of the periods shown.
  


Non-Performing Assets

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

(in thousands)September 30,
2021
 June 30,
2021
 March 31,
2021
 December 31,
2020
 September 30,
2020
Non-Accrual Loans(1)         
Real Estate Loans         
Commercial real estate (CRE)         
Non-owner occupied$28,507 $48,347 $8,515 $8,219 $8,289
Multi-family residential 9,928 11,369 11,340 1,484
 28,507 58,275 19,884 19,559 9,773
Single-family residential6,344 7,174 10,814 10,667 11,071
Owner occupied11,040 11,277 12,527 12,815 14,539
 45,891 76,726 43,225 43,041 35,383
Commercial loans (2)36,500 43,876 45,282 44,205 50,991
Consumer loans and overdrafts353 198 270 233 104
Total Non-Accrual Loans$82,744 $120,800 $88,777 $87,479 $86,478
          
Past Due Accruing Loans(3)         
Real Estate Loans         
Commercial real estate (CRE)         
Non-owner occupied$ $ $743 $ $
Single-family residential4 20   1
Owner occupied   220 
Commercial 295   
Consumer loans and overdrafts1 4 3 1 1
Total Past Due Accruing Loans5 319 746 221 2
Total Non-Performing Loans82,749 121,119 89,523 87,700 86,480
Other Real Estate Owned9,800 400 400 427 42
Total Non-Performing Assets$92,549 $121,519 $89,923 $88,127 $86,522
               

           
__________________

(1)  Includes loan modifications that met the definition of TDRs which may be performing in accordance with their modified loan terms. As of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, non-performing TDRs include $9.3 million, $9.6 million, $9.8 million, $8.4 million and $9.0 million, respectively, in a multiple loan relationship to a South Florida borrower.
(2)As of September 30, 2021,includes $13.9 million in a commercial relationship placed in nonaccrual status during the second quarter of 2020 ($19.6 million at each of the other periods shown). During the third quarters of 2021 and 2020, the Company charged off $5.7 million and $19.3 million, respectively, against the allowance for loan losses as result of the deterioration of this commercial relationship.
(3)Loans past due 90 days or more but still accruing.
  

  

Loans by Credit Quality Indicators

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

 September 30, 2021 June 30, 2021 September 30, 2020
(in thousands)Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1)
Real Estate Loans              
Commercial Real
Estate (CRE)
              
Non-owner 
occupied
$31,269 $25,332 $3,175 $59,776  $32,858 $36,040 $12,306 $81,204  $16,780 $7,236 $1,798 $25,814 
Multi-family residential      9,928  9,928   1,484  1,484 
Land development 
and 
construction 
loans
          7,201   7,201 
 31,269 25,332 3,175 59,776  32,858 45,968 12,306 91,132  23,981 8,720 1,798 34,499 
Single-family residential 6,368  6,368   7,194  7,194   11,072  11,072 
Owner occupied7,473 11,136  18,609  19,456 11,375  30,831  34,556 14,643  49,199 
 38,742 42,836 3,175 84,753  52,314 64,537 12,306 129,157  58,537 34,435 1,798 94,770 
Commercial loans (2)38,522 22,471 15,404 76,397  40,151 23,055 22,546 85,752  27,111 37,338 13,856 78,305 
Consumer loans and 
overdrafts
 356  356   201  201   111  111 
 $77,264 $65,663 $18,579 $161,506  $92,465 $87,793 $34,852 $215,110  $85,648 $71,884 $15,654 $173,186 

__________

(1)  There were no loans categorized as “Loss” as of the dates presented.
(2)Loan balances as of September 30, 2021 include $13.9 million in a commercial relationship placed in nonaccrual status and downgraded during the second quarter of 2020 ($19.6 million at each of the other periods shown). As of September 30, 2021, Substandard loans include $7.3 million and doubtful loans include $6.6 million, related to this commercial relationship (Substandard loans include $7.3 million and doubtful loans include $12.3 million at each of the other periods shown). During the third quarters of 2021 and 2020, the Company charged off $5.7 million and $19.3 million, respectively, against the allowance for loan losses as result of the deterioration of this commercial relationship.
  


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, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020
  
Domestic$3,090,563 $3,140,541 $3,175,522 $3,202,936 $3,310,343
Foreign:         
Venezuela2,054,149 2,075,658 2,088,519 2,119,412 2,169,621
Others481,665 458,709 414,038 409,295 397,582
Total foreign2,535,814 2,534,367 2,502,557 2,528,707 2,567,203
Total deposits$5,626,377 $5,674,908 $5,678,079 $5,731,643 $5,877,546
               

CONTACTS: 

Investors
Laura Rossi
InvestorRelations@amerantbank.com
(305) 460-8728 

Media
Silvia M. Larrieu
MediaRelations@amerantbank.com
(305) 441-8414  

 


Important Information

You are now leaving the Amerant website, which contains links to other websites. Amerant is not responsible for the privacy practices or content of these linked websites.