amtb-20230119
0001734342false00017343422023-01-192023-01-19
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 19, 2023
https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amtb-20230119_g1.jpg 
Amerant Bancorp Inc.
(Exact name of registrant as specified in its charter) 
Florida 001-38534 65-0032379
(State or other jurisdiction
of incorporation
 (Commission
file number)
 (IRS Employer
Identification Number)
220 Alhambra Circle
Coral Gables, Florida
33134
(Address of principal executive offices)(Zip Code)
(305) 460-8728
      (Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of exchange on which registered
Class A Common StockAMTBNASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02 Results of Operations and Financial Condition

On January 19, 2023, Amerant Bancorp Inc. (the "Company") issued a press release to report the Company’s financial results for the fiscal quarter and year ended December 31, 2022. The release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference to this Item 2.02.

In accordance with General Instruction B.2. of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure

On January 20, 2023, the Company will hold a live audio webcast to discuss its financial results for the fiscal quarter and year ended December 31, 2022. In connection with the webcast, the Company is furnishing to the U.S. Securities and Exchange Commission the earnings slide presentation attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference to this Item 7.01.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 attached hereto, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

On January 19, 2023, the Company announced that, on January 18, 2023, its Board of Directors declared a cash dividend of $0.09 per share of common stock. The dividend is payable on February 28, 2023 to shareholders of record at the close of business on February 13, 2023. A copy of the press release is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits
Number
Exhibit
99.1
99.2
99.3
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: January 19, 2023 Amerant Bancorp Inc.
    
  By: /s/ Julio V. Pena
    Name: Julio V. Pena
    Title:  Senior Vice President, Securities Counsel and Assistant Corporate Secretary

Document
https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg

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


AMERANT REPORTS FOURTH QUARTER 2022 AND FULL-YEAR 2022 RESULTS

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


CORAL GABLES, FLORIDA, January 20, 2023. Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $18.8 million in the fourth quarter of 2022 , or $0.55 per diluted share. Results in the fourth quarter reflect a provision for credit losses of $20.9 million, including the retroactive effect of the Current Expected Credit Loss (“CECL”) accounting standard for all previous quarterly periods in the year ended December 31, 2022 for an amount of approximately $11.1 million1. Net income attributable to the Company was $63.3 million for the full-year 2022, or $1.85 per diluted share.

Selected Financial Highlights:

Total assets were $9.1 billion, up $387.8 million, or 4.44%, compared to $8.7 billion as of 3Q22 and up $1.5 billion, or 19.5%, compared to $7.6 billion as of 4Q21.

Total gross loans were $6.92 billion, an increase of $416.3 million, or 6.40%, compared to $6.50 billion in 3Q22 and an increase of $1.35 billion, or 24.3%, compared to $5.57 billion in 4Q21.

Total deposits were $7.04 billion, up $456.1 million, or 6.92%, compared to $6.59 billion in 3Q22 and up $1.41 billion, or 25.1%, compared to $5.63 billion in 4Q21.

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




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

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Adoption of the CECL Accounting Standard

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

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

Financial Highlights Continued:

Average yield on loans was 5.85%, up compared to 5.06% and 4.10% in 3Q22 and 4Q21, respectively. Average yield on loans for the full-year 2022 was 4.92%, also up compared to 3.92% for the full-year 2021.

Non-performing loans were $37.6 million, an increase of $18.9 million, or 100.6%, compared to $18.7 million as of 3Q22 and a decrease of $12.2 million, or 24.5%, compared to $49.8 million as of 4Q21. The increase resulted from a single commercial loan that is expected to become real estate owned without additional charges in 1Q23.

The allowance for credit losses ("ACL") was $83.5 million, an increase of $29.8 million, or 55.5%, compared to $53.7 million as of 3Q22 and an increase of $13.6 million, or 19.5%, compared to $69.9 million in 4Q21. The increase to the ACL was primarily driven by the adoption of CECL as of December 31, 2022. Quarterly amounts for third quarter of 2022 do not reflect the adoption of CECL.

Core deposits were $5.32 billion, up $114.3 million, or 2.2%, compared to $5.20 billion as of 3Q22 and up $1.0 billion, or 23.8%, compared to $4.29 billion as of 4Q21.

Average cost of total deposits was 1.38%, an increase compared to 0.83% in 3Q22 and 0.41% in 4Q21. Average cost of total deposits for the full-year 2022 was 0.80%, also an increase compared to 0.49% for the full-year 2021.

Loan to deposit ratio was 98.23% compared to 98.71% and 98.88% in 3Q22 and 4Q21, respectively.

1 The provision for credit losses in the fourth quarter under CECL, excluding the retroactive effect corresponding to the first, second and third quarters of 2022, is approximately $7.0 million dollars, which results in net income attributable to the Company of $22.0 million in the fourth quarter of 2022, or $0.65 per diluted share.
2

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Assets Under Management and custody (“AUM”) totaled $2.00 billion as of 4Q22, an increase of $0.2 billion, or 10.2%, compared to $1.81 billion as of 3Q22 and a decrease of $0.2 billion, or 10.1%, compared to $2.22 billion in 4Q21.

Pre-provision net revenue (“PPNR”)2 was $44.5 million in 4Q22, an increase of $14.7 million, or 49.3%, compared to $29.8 million in 3Q22, and a decrease of $34.7 million, or 43.8%, compared to $79.1 million in 4Q21. PPNR2 was $93.9 million for the full-year 2022, a decrease of $36.3 million, or 27.9%, compared to $130.1 million for the full-year 2021. Core Pre-Provision Net Revenue (“Core PPNR”)2 was $37.8 million, an increase of $7.5 million, or 24.8%, from $30.3 million in 3Q22 and an increase of $18.9 million, or 100.1%, from $18.9 million in 4Q21. Core PPNR2 was $105.5 million for the full-year 2022, an increase of $35.6 million, or 50.9%, compared to $69.9 million for the full-year 2021.

Net Interest Margin (“NIM”) was 3.96%, up compared to 3.61% and 3.17% in 3Q22 and 4Q21, respectively. NIM was 3.53% for the full-year 2022, an increase compared to 2.90% for the full-year 2021.

Net Interest Income (“NII”) was $82.2 million, up $12.3 million, or 17.6%, compared to $69.9 million in 3Q22 and up $26.4 million, or 47.3%, compared to $55.8 million in 4Q21. NII was $266.7 million for the full-year 2022, up $61.5 million, or 29.99%, compared to $205.1 million for the full-year 2021.

Provision for credit losses was $20.9 million, up compared to $3.0 million in 3Q22, and a release from the provision of $6.5 million in 4Q21. Provision for credit losses was $13.9 million for the full-year 2022, compared to a release of $16.5 million in the full-year 2021. The increase in the provision for credit losses in 4Q22 includes the retroactive effect of CECL adoption for all previous quarterly periods in the year ended December 31, 2022 for an amount of approximately $11.1 million1, including loan growth and changes to macro-economic conditions during the year 2022. The Company also recorded $9.8 million in provision for credit losses in 4Q22, of which a $2.2 million was for a specific reserve on a commercial loan, and $5.5 million related to consumer loans and a change in the consumer credit charge-off policy.

Non-interest income was $24.4 million, an increase of $8.4 million, or 52.7%, compared to $16.0 million in 3Q22 and a decrease of $52.9 million, or 68.48%, compared to $77.3 million in 4Q21. Non-interest income was $67.3 million for the full-year 2022, a decrease of $53.3 million, or 44.2%, compared to $120.6 million for the full-year 2021.

Non-interest expense was $62.2 million, up $6.1 million, or 10.9%, compared to $56.1 million in 3Q22 and up $7.2 million, or 13.0%, compared to $55.1 million in 4Q21. Non-interest expense was $241.4 million for the full-year 2022, up $43.2 million or 21.78%, compared to $198.2 million for the full-year 2021.


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

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


3

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
The efficiency ratio was 58.42%, down compared to 65.36% in 3Q22 and up compared to 41.40% in 4Q21. The efficiency ratio was 72.29% for the full-year 2022 compared to 60.85% for the full-year 2021.

Return on average assets (“ROA”) was 0.83% compared to 1.00% and 3.45% in 3Q22 and 4Q21, respectively. ROA was 0.77% for the full-year 2022 compared to 1.50% for the full-year 2021.

Return on average equity (“ROE”) was 10.33% compared to 11.28% and 32.04% in 3Q22 and 4Q21, respectively. ROE was 8.45% for the full-year 2022 compared to 14.19% for the full-year 2021.

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





4

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg

Fourth Quarter and Full Year 2022 Earnings Conference Call

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

About Amerant Bancorp Inc. (NASDAQ: AMTB)

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

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

Cautionary Notice Regarding Forward-Looking Statements

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

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

5

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Interim Financial Information

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

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

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

Non-GAAP Financial Measures

The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with non-GAAP financial measures, such as “pre-provision net revenue (PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core noninterest income”, “core noninterest expenses”, “core net income”, “core earnings per share (basic and diluted)”, “core return on assets (Core ROA)”, “core return on equity (Core ROE)”, “core efficiency ratio”, and “tangible stockholders’ equity book value per common share”. This supplemental information is not required by, or is not presented in accordance with GAAP. The Company refers to these financial measures and ratios as “non-GAAP financial measures” and they should not be considered in isolation or as a substitute for the GAAP measures presented herein.
6

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg


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

Exhibit 2 reconciles these non-GAAP financial measures to reported results.
7

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Exhibit 1- Selected Financial Information
The following table sets forth selected financial information derived from our unaudited and audited consolidated financial statements.

(in thousands)
December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 2021
Consolidated Balance Sheets(audited)
Total assets$9,127,804 $8,739,979 $8,151,242 $7,805,836 $7,638,399 
Total investments1,366,680 1,352,782 1,422,479 1,324,969 1,341,241 
Total gross loans (1)6,919,632 6,503,359 5,847,384 5,721,177 5,567,540 
Allowance for credit losses (2)83,500 53,711 52,027 56,051 69,899 
Total deposits7,044,199 6,588,122 6,202,854 5,691,701 5,630,871 
Core deposits (3)5,315,944 5,201,681 4,948,445 4,443,414 4,293,031 
Advances from the FHLB and other borrowings906,486 981,005 830,524 980,047 809,577 
Senior notes 59,210 59,131 59,052 58,973 58,894 
Subordinated notes (4)29,284 29,241 29,199 29,156 — 
Junior subordinated debentures 64,178 64,178 64,178 64,178 64,178 
Stockholders' equity (2)(5)(6)(7)705,726 695,698 711,450 749,396 831,873 
Assets under management and custody (8)
1,995,666 1,811,265 1,868,017 2,129,387 2,221,077 

Three Months Ended
Years Ended December 31,
(in thousands, except percentages, share data and per share amounts)
December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 202120222021
Consolidated Results of Operations
(audited)
Net interest income$82,178 $69,897 $58,945 $55,645 $55,780 $266,665 $205,141
Provision for (reversal of) credit losses (2)20,945 3,000 — (10,000)(6,500)13,945 (16,500)
Noninterest income24,365 15,956 12,931 14,025 77,290 67,277 120,621 
Noninterest expense62,241 56,113 62,241 60,818 55,088 241,413 198,242 
Net income attributable to Amerant Bancorp Inc. (9)18,766 20,920 7,674 15,950 65,469 63,310 112,921 
Effective income tax rate20.32 %21.93 %21.10 %21.10 %23.88 %21.15 %23.41 %
Common Share Data
Stockholders' book value per common share$20.87 $20.60 $21.07 $21.82 $23.18 $20.87 $23.18 
Tangible stockholders' equity (book value) per common share (10)$20.19 $19.92 $20.40 $21.15 $22.55 $20.19 $22.55 
Basic earnings per common share$0.56 $0.62 $0.23 $0.46 $1.79 $1.87 $3.04 
Diluted earnings per common share (11)$0.55 $0.62 $0.23 $0.45 $1.77 $1.85 $3.01 
Basic weighted average shares outstanding 33,496,096 33,476,418 33,675,930 34,819,984 36,606,969 33,862,410 37,169,283 
Diluted weighted average shares outstanding (11)33,813,593 33,746,878 33,914,529 35,114,043 37,064,769 34,142,563 37,527,523 
Cash dividend declared per common share (7)$0.09 $0.09 $0.09 $0.09 $0.06 $0.36 $0.06 
8

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Three Months EndedYears Ended December 31,
December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 202120222021
Other Financial and Operating Data (12)(audited)
Profitability Indicators (%)
Net interest income / Average total interest earning assets (NIM) (13)3.96 %3.61 %3.28 %3.18 %3.17 %3.53 %2.90 %
Net income / Average total assets (ROA) (14)0.83 %1.00 %0.39 %0.84 %3.45 %0.77 %1.50 %
Net income / Average stockholders' equity (ROE) (15)10.33 %11.28 %4.14 %8.10 %32.04 %8.45 %14.19 %
Noninterest income / Total revenue (16)22.87 %18.59 %17.99 %20.13 %58.08 %20.15 %37.03 %
Capital Indicators (%)
Total capital ratio (17)12.39 %12.49 %13.21 %13.80 %14.56 %12.39 %14.56 %
Tier 1 capital ratio (18)10.89 %11.34 %11.99 %12.48 %13.45 %10.89 %13.45 %
Tier 1 leverage ratio (19)9.18 %9.88 %10.25 %10.67 %11.52 %9.18 %11.52 %
Common equity tier 1 capital ratio (CET1) (20)10.10 %10.50 %11.08 %11.55 %12.50 %10.10 %12.50 %
Tangible common equity ratio (21)7.50 %7.72 %8.47 %9.34 %10.63 %7.50 %10.63 %
Liquidity Ratios (%)
Loans to Deposits (22)98.23 %98.71 %94.27 %100.52 %98.88 %98.23 %98.88 %
Asset Quality Indicators (%)
Non-performing assets / Total assets (23)0.41 %0.29 %0.39 %0.73 %0.78 %0.41 %0.78 %
Non-performing loans / Total loans (1) (24)0.54 %0.29 %0.43 %0.82 %0.89 %0.54 %0.89 %
Allowance for credit losses / Total non-performing loans (2)(24)222.08 %287.56 %206.84 %119.34 %140.41 %222.08 %140.41 %
Allowance for loan credit losses / Total loans held for investment (1)(2)1.22 %0.83 %0.91 %0.99 %1.29 %1.22 %1.29 %
Net charge-offs / Average total loans held for investment (25)0.59 %0.09 %0.29 %0.29 %0.52 %0.32 %0.44 %
Efficiency Indicators (% except FTE)
Noninterest expense / Average total assets2.75 %2.67 %3.18 %3.20 %2.90 %2.95 %2.63 %
Salaries and employee benefits / Average total assets1.45 %1.43 %1.54 %1.60 %1.65 %1.51 %1.56 %
Other operating expenses/ Average total assets (26)1.30 %1.24 %1.64 %1.60 %1.25 %1.44 %1.07 %
Efficiency ratio (27)58.42 %65.36 %86.59 %87.29 %41.40 %72.29 %60.85 %
Full-Time-Equivalent Employees (FTEs) (28)692681680677763692763

9

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg


Three Months EndedYears Ended December 31,
(in thousands, except percentages and per share amounts)
December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 202120222021
Core Selected Consolidated Results of Operations and Other Data (10) (audited)
Pre-provision net revenue (PPNR)$44,457 $29,784 $9,707 $9,928 $79,141 $93,876 $130,130 
Core pre-provision net revenue (Core PPNR)$37,838 $30,325 $19,447 $17,869 $18,911 $105,479 $69,907 
Core net income$13,610 $21,275 $15,358 $22,216 $19,339 $72,459 $66,796 
Core basic earnings per common share 0.41 0.64 0.46 0.64 0.53 2.14 1.80 
Core earnings per diluted common share (11)0.40 0.63 0.45 0.63 0.52 2.12 1.78 
Core net income / Average total assets (Core ROA) (14)0.60 %1.01 %0.78 %1.17 %1.02 %0.88 %0.89 %
Core net income / Average stockholders' equity (Core ROE) (15)7.49 %11.47 %8.28 %11.28 %9.46 %9.67 %8.39 %
Core efficiency ratio (29)61.34 %64.14 %73.68 %76.36 %74.98 %68.11 %73.96 %

__________________
(1) Total gross loans include loans held for investment net of unamortized deferred loan origination fees and costs. In addition, at June 30, 2022, March 31, 2022 and December 31, 2021, total loans include $66.4 million, $68.6 million and $143.2 million, respectively, in NYC real estate loans held for sale carried at the lower of cost or estimated fair value. In the third quarter of 2022, the Company transferred the NYC real estate loans held for sale to the loans held for investment category. Also, in the first quarter of 2022 and the fourth quarter of 2021, the Company sold approximately $57.3 million and $49.4 million, respectively, in loans held for sale carried at the lower of cost or estimated fair value related to the New York portfolio. In addition, as of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, total loans include $62.4 million, $57.6 million, $54.9 million, $17.1 million and $14.9 million, respectively, primarily in mortgage loans held for sale carried at fair value.
(2)     In the fourth quarter of 2022, the Company adopted the Current Expected Credit Loss (“CECL”) accounting standard using a modified retrospective approach. Therefore, quarterly amounts for the first, second and third quarters of 2022 do not reflect the adoption of CECL. In the fourth quarter of 2022, the Company recorded an increase to its allowance for credit losses (“ACL”) of $18.7 million as of January 1, 2022, with a corresponding after tax cumulative effect adjustment to retained earnings of $13.9 million. In addition, in the fourth quarter of 2022, the Company recorded the impact of CECL on its ACL in 2022 through a provision for credit losses of $11.1 million, including the retroactive effect of CECL for all previous quarterly periods in the year ended December 31, 2022. The Company has not elected to apply an available three-year transition provision to its regulatory capital computations as a result of its adoption of CECL in 2022.
(3)     Core deposits consist of total deposits excluding all time deposits.
(4) On March 9, 2022, the Company completed a $30.0 million offering of subordinated notes with a 4.25% fixed-to-floating rate and due March 15, 2032 (the “Subordinated Notes”). The Subordinated Notes bear interest at a fixed rate of 4.25% per annum, from and including March 9, 2022, to but excluding March 15, 2027, with interest payable semi-annually in arrears. From and including March 15, 2027, to but excluding the stated maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to the then-current benchmark rate, which will initially be the three-month Secured Overnight Financing Rate (“SOFR”) plus 251 basis points, with interest during such period payable quarterly in arrears. If the three-month SOFR cannot be determined during the applicable floating rate period, a different index will be determined and used in accordance with the terms of the Subordinated Notes. Notes are presented net of direct issuance costs which are deferred and amortized over 10 years. The Subordinated Notes have been structured to qualify as Tier 2 capital of the Company for regulatory capital purposes, and rank equally in right of payment to all of our existing and future subordinated indebtedness.
(5) In the first quarter of 2022, the Company repurchased an aggregate of 652,118 shares of Class A common stock at a weighted average price of $33.96 per share, under the Class A common stock repurchase program launched in 2021 (the “Class A Common Stock Repurchase Program”). The aggregate purchase price for these transactions was approximately $22.1 million, including transaction costs. On January 31, 2022, the Company announced the completion of the Class A Common Stock repurchase program. In addition, in the first quarter of 2022, the Company announced the launch of a new repurchase program pursuant to which the Company may purchase, from time to time, up to an aggregate amount of $50 million of its shares of
10

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Class A common stock (the “New Class A Common Stock Repurchase Program”). In the second and first quarters of 2022, the Company repurchased an aggregate of 611,525 shares and 991,362 shares, respectively, of Class A common stock at a weighted average price of $28.19 per share and $32.96 per share, respectively, under the New Class A Common Stock Repurchase Program. In the second and first quarters of 2022, the aggregate purchase price for these transactions was approximately $17.2 million and $32.7 million, respectively, including transaction costs. On May 19, 2022, the Company announced the completion of repurchased under the New Class A Common Stock Repurchase Program.
(6)    In the fourth quarter of 2021, the Company’s shareholders approved a clean-up merger, previously announced by the Company, pursuant to which a subsidiary of the Company merged with and into the Company (the “Merger”). Under the terms of the Merger, each outstanding share of Class B common stock was converted to 0.95 of a share of Class A common stock. In addition, any shareholder who owned fewer than 100 shares of Class A common stock upon completion of the Merger, received cash in lieu of Class A common stock. There were no authorized or outstanding Class B common stock at December 31, 2021. Furthermore, in connection with the Merger, the Company’s Board of Directors authorized the Class A Common Stock Repurchase Program which provided for the potential to repurchase up to $50 million of shares of Class A common stock. In the fourth quarter of 2021, the Company repurchased an aggregate of 1,175,119 shares of Class A common stock for an aggregate purchase price of $36.3 million, including $27.9 million repurchased under the Class A Common Stock Repurchase Program and $8.5 million shares cashed out in accordance with the terms of the Merger. The total weighted average market price of these transactions was $30.92 per share.
(7) In the fourth, third, second and first quarters of 2022, and in the fourth quarter of 2021, the Company’s Board of Directors declared cash dividends of $0.09, $0.09, $0.09, $0.09 and $0.06 per share of the Company’s common stock, respectively. The dividend declared in the fourth quarter of 2022 was paid on November 30, 2022 to shareholders record at the close of business on November 15, 2022. The dividend declared in the third quarter of 2022 was paid on August 31, 2022 to shareholders of record at the close of business on August 17, 2022.The dividend declared in the second quarter of 2022 was paid on May 31, 2022 to shareholders of record at the close of business on May 13, 2022.The dividend declared in the first quarter of 2022 was paid on February 28, 2022 to shareholders of record at the close of business on February 11, 2022. The dividend declared in the fourth quarter of 2021 was paid on or before January 15, 2022 to holders of record as of December 22, 2021. The aggregate amount paid in connection with these dividends in the fourth, third, second and first quarters of 2022, and in the fourth quarter of 2021 was $3.0 million, $3.0 million, $3.0 million, $3.2 million and $2.2 million, respectively
(8) Assets held for clients in an agency or fiduciary capacity which are not assets of the Company and therefore are not included in the consolidated financial statements.
(9)    In the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, net income exclude losses of $0.2 million, $44 thousand, $0.1 million, $1.1 million and $1.2 million, respectively, attributable to the minority interest of Amerant Mortgage LLC. Beginning March 31, 2022, the minority interest share changed from 49% to 42.6%. This change had no impact to the Company’s financial condition or results of operations as of and for the first quarter ended March 31, 2022. In addition, in the second quarter of 2022, the minority interest share changed from 42.6% to 20%. In connection with the change in minority interest share in the second quarter of 2022, the Company reduced its additional paid-in capital for a total of $1.9 million with a corresponding increase to the equity attributable to noncontrolling interests.
(10) This presentation contains adjusted financial information determined by methods other than GAAP. This adjusted financial information is reconciled to GAAP in Exhibit 2 - Non-GAAP Financial Measures Reconciliation.
(11) In all the periods shown, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. Potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in all the periods shown, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.
(12) Operating data for the periods presented have been annualized.
(13) NIM is defined as NII divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.
(14) Calculated based upon the average daily balance of total assets.
(15)     Calculated based upon the average daily balance of stockholders’ equity.
(16)     Total revenue is the result of net interest income before provision for credit losses plus noninterest income.
(17)     Total stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.
(18) Tier 1 capital divided by total risk-weighted assets. Tier 1 capital is composed of Common Equity Tier 1 (CET1) capital plus outstanding qualifying trust preferred securities of $62.3 million at each of all the dates presented.
(19)     Tier 1 capital divided by quarter to date average assets.
(20) CET1 capital divided by total risk-weighted assets.
(21) Tangible common equity is calculated as the ratio of common equity less goodwill and other intangibles divided by total assets less goodwill and other intangible assets. Other intangible assets consist of, among other things, mortgage servicing rights and are included in other assets in the Company’s consolidated balance sheets.
(22)     Calculated as the ratio of total loans gross divided by total deposits.
(23) Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans, restructured loans that are considered “troubled debt restructurings” or “TDRs”, and other real estate owned (“OREO”) properties acquired through or in lieu of foreclosure.
(24) Non-performing loans include all accruing loans past due by 90 days or more, all nonaccrual loans and restructured loans that are considered TDRs.
(25) Calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for credit losses. During the fourth, third, second and first quarters of 2022, and the fourth quarter of 2021, there were net charge offs of $9.8 million, $1.3 million, $4.0 million, $3.8 million, and $7.0 million, respectively. During the fourth quarter of 2022, the Company charged-off $3.9 million related to a CRE loan, $5.5 million
11

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
related to multiple consumer loans and $1.1 million related to multiple commercial loans. During the third quarter of 2022, the Company charged-off $1.7 million related to multiple consumer loans and $0.2 million in connection with two commercial loans. During the second quarter of 2022, the Company charged-off $3.6 million in connection with a loan relationship with a Miami-based U.S. coffee trader. During the first quarter of 2022, the Company charged-off $3.3 million in two commercial loans, including $2.5 million related to a nonaccrual loan paid off during the period. During the fourth quarter of 2021, the Company charged-off an aggregate of $4.2 million related to various commercial loans and $1.8 million related to one real estate loan.
(26) Other operating expenses is the result of total noninterest expense less salary and employee benefits.
(27) Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and NII.
(28) As of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, includes 68, 67, 67, 79, and 72 FTEs for Amerant Mortgage LLC, respectively. In addition, effective January 1, 2022, there were 80 employees who are no longer working for the Company as a result of the new agreement with Fidelity National Information Services, Inc. (“FIS”).
(29) Core efficiency ratio is the efficiency ratio less the effect of restructuring costs and other adjustments, described in Exhibit 2 - Non-GAAP Financial Measures Reconciliation.
12

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Exhibit 2- Non-GAAP Financial Measures Reconciliation
The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related to tax deductible restructuring costs, provision for (reversal of) credit losses, provision for income tax expense (benefit), the effect of non-core banking activities such as the sale of loans and securities,the valuation of securities, derivatives, loans held for sale and other real estate owned, the sale and leaseback of our corporate headquarters in the fourth quarter of 2021, and other non-recurring actions intended to improve customer service and operating performance. The Company believes these adjusted numbers are useful to understand the Company’s performance absent these transactions and events.

Three Months Ended,Years Ended December 31,
(in thousands)
December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 20212022
2021
(audited)
Net income attributable to Amerant Bancorp Inc. (1)$18,766 $20,920 $7,674 $15,950 $65,469 $63,310 $112,921 
Plus: provision for (reversal of) credit losses (1)20,945 3,000 — (10,000)(6,500)13,945 (16,500)
Plus: provision for income tax expense (2)4,746 5,864 2,033 3,978 20,172 16,621 33,709 
Pre-provision net revenue (PPNR)$44,457 $29,784 $9,707 $9,928 $79,141 $93,876 $130,130 
Plus: non-routine noninterest expense items2,447 1,954 7,995 6,574 1,895 18,970 7,057 
(Less) Plus: non-routine noninterest income items(9,066)(1,413)1,745 1,367 (62,125)(7,367)(67,280)
Core pre-provision net revenue (Core PPNR)$37,838 $30,325 $19,447 $17,869 $18,911 $105,479 $69,907 
Total noninterest income$24,365 $15,956 $12,931 $14,025 $77,290 $67,277 $120,621 
Less: Non-routine noninterest income items:
Less: gain on sale of Headquarters building (2)— — — — 62,387 — 62,387 
Derivative gains (losses), net1,040 (95)855 (1,345)— 455 — 
Securities (loss) gains, net(3,364)1,508 (2,602)769 (117)(3,689)3,740 
Gain (loss) on early extinguishment of FHLB advances, net11,390 — (714)— 10,678 (2,488)
(Loss) gain on sale of loans— — — (77)(145)(77)3,641 
Total non-routine noninterest income items$9,066 $1,413 $(1,745)$(1,367)$62,125 $7,367 $67,280 
Core noninterest income$15,299 $14,543 $14,676 $15,392 $15,165 $59,910 $53,341 
Total noninterest expenses$62,241 $56,113 $62,241 $60,818 $55,088 $241,413 $198,242 
Less: non-routine noninterest expense items
Restructuring costs (3)
Staff reduction costs (4)1,221 358 674 765 26 3,018 3,604 
Contract termination costs (5)— 289 2,802 4,012 — 7,103 — 
Legal and Consulting fees (6)1,226 1,073 80 1,246 1,277 3,625 1,689 
Digital transformation expenses— — — 45 50 45 412 
Lease impairment charge (7)— — 1,565 14 — 1,579 810 
Branch closure expenses (8)— — — 33 542 33 542 
Total restructuring costs$2,447 $1,720 $5,121 $6,115 $1,895 $15,403 $7,057 
Other non-routine noninterest expense items:
Other real estate owned valuation expense (9)— 234 3,174 — — 3,408 — 
Loans held for sale valuation (reversal) expense (10)— — (300)459 — 159 — 
Total non-routine noninterest expense items$2,447 $1,954 $7,995 $6,574 $1,895 $18,970 $7,057 
Core noninterest expenses $59,794 $54,159 $54,246 $54,244 $53,193 $222,443 $191,185 
13

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Three Months Ended,Years Ended December 31,
(in thousands, except percentages and per share data)
December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 20212022
2021
(audited)
Net income attributable to Amerant Bancorp Inc. (1)$18,766 $20,920 $7,674 $15,950 $65,469 $63,310 $112,921 
Plus after-tax non-routine items in noninterest expense:
Non-routine items in noninterest expense before income tax effect2,447 1,954 7,995 6,574 1,895 18,970 7,057 
Income tax effect (11)(460)(478)(1,687)(1,387)(478)(4,012)(1,652)
Total after-tax non-routine items in noninterest expense1,987 1,476 6,308 5,187 1,417 14,958 5,405 
Plus (less): before-tax non-routine items in noninterest income:
Non-routine items in noninterest income before income tax effect(9,066)(1,413)1,745 1,367 (62,125)(7,367)(67,280)
Income tax effect (11)1,923 292 (369)(288)14,578 1,558 15,750 
Total after-tax non-routine items in noninterest income(7,143)(1,121)1,376 1,079 (47,547)(5,809)(51,530)
Core net income$13,610 $21,275 $15,358 $22,216 $19,339 $72,459 $66,796 
Basic earnings per share$0.56 $0.62 $0.23 $0.46 $1.79 $1.87 $3.04 
Plus: after tax impact of non-routine items in noninterest expense0.06 0.04 0.19 0.15 0.04 0.44 0.15 
(Less) Plus: after tax impact of non-routine items in noninterest income(0.21)(0.02)0.04 0.03 (1.30)(0.17)(1.39)
Total core basic earnings per common share$0.41 $0.64 $0.46 $0.64 $0.53 $2.14 $1.80 
Diluted earnings per share (12)$0.55 $0.62 $0.23 $0.45 $1.77 $1.85 $3.01 
Plus: after tax impact of non-routine items in noninterest expense0.06 0.04 0.18 0.15 0.04 0.44 0.14 
(Less) Plus: after tax impact of non-routine items in noninterest income(0.21)(0.03)0.04 0.03 (1.29)(0.17)(1.37)
Total core diluted earnings per common share$0.40 $0.63 $0.45 $0.63 $0.52 $2.12 $1.78 
Net income / Average total assets (ROA)0.83 %1.00 %0.39 %0.84 %3.45 %0.77 %1.50 %
Plus: after tax impact of non-routine items in noninterest expense0.09 %0.07 %0.32 %0.28 %0.07 %0.18 %0.07 %
(Less) Plus: after tax impact of non-routine items in noninterest income(0.32)%(0.06)%0.07 %0.06 %(2.50)%(0.07)%(0.68)%
Core net income / Average total assets (Core ROA)0.60 %1.01 %0.78 %1.18 %1.02 %0.88 %0.89 %
Net income / Average stockholders' equity (ROE)10.33 %11.28 %4.14 %8.10 %32.04 %8.45 %14.19 %
Plus: after tax impact of non-routine items in noninterest expense1.09 %0.80 %3.40 %2.63 %0.69 %2.00 %0.68 %
(Less) Plus: after tax impact of non-routine items in noninterest income(3.93)%(0.61)%0.74 %0.55 %(23.27)%(0.78)%(6.48)%
Core net income / Average stockholders' equity (Core ROE)7.49 %11.47 %8.28 %11.28 %9.46 %9.67 %8.39 %
Efficiency ratio58.42 %65.36 %86.59 %87.29 %41.40 %72.29 %60.85 %
Less: impact of non-routine items in noninterest expense(2.30)%(2.28)%(11.12)%(9.43)%(1.43)%(5.68)%(2.16)%
Plus (Less): impact of non-routine items in noninterest income5.22 %1.06 %(1.79)%(1.50)%35.01 %1.50 %15.27 %
Core efficiency ratio61.34 %64.14 %73.68 %76.36 %74.98 %68.11 %73.96 %
14

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Three Months Ended,Years Ended December 31,
(in thousands, except percentages, share data and per share data)
December 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 20212022
2021
(audited)
Stockholders' equity$705,726 $695,698 $711,450 $749,396 $831,873 $705,726 $831,873 
Less: goodwill and other intangibles (13)(23,161)(22,814)(22,808)(22,795)(22,528)(23,161)(22,528)
Tangible common stockholders' equity$682,565 $672,884 $688,642 $726,601 $809,345 $682,565 $809,345 
Total assets9,127,804 8,739,979 8,151,242 7,805,836 7,638,399 9,127,804 7,638,399 
Less: goodwill and other intangibles (13)(23,161)(22,814)(22,808)(22,795)(22,528)(23,161)(22,528)
Tangible assets$9,104,643 $8,717,165 $8,128,434 $7,783,041 $7,615,871 $9,104,643 $7,615,871 
Common shares outstanding33,815,161 33,773,249 33,759,604 34,350,822 35,883,320 33,815,161 35,883,320 
Tangible common equity ratio7.50 %7.72 %8.47 %9.34 %10.63 %7.50 %10.63 %
Stockholders' book value per common share$20.87 $20.60 $21.07 $21.82 $23.18 $20.87 $23.18 
Tangible stockholders' book value per common share$20.19 $19.92 $20.40 $21.15 $22.55 $20.19 $22.55 
____________
(1)     Net income attributable to the Company results in $22.0 million in the fourth quarter of 2022, excluding the CECL retroactive effect corresponding to the first, second, and third quarters of 2022. The provision for credit losses attributable to the fourth quarter of 2022 is $16.9 million, excluding the CECL retroactive effect corresponding to the first, second and third quarters of 2022. In the fourth quarter of 2022, the Company adopted CECL and recorded the related impact on its ACL in 2022 through a provision for credit losses of $11.1 million.
(2)     The Company sold its Coral Gables headquarters for $135 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year term. The provision for income tax expense includes approximately $16.1 million related to this transaction in the three months ended December 31, 2021.
(3)     Expenses incurred for actions designed to implement the Company’s business strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation of new technology system applications, decommissioning of legacy technologies, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities.
(4) In the fourth quarter of 2022, includes expenses primarily in connection with changes in certain positions within our business units. In the third quarter of 2022 and the fourth quarter of 2021, includes expenses primarily in connection with the elimination of certain support functions. In the second and first quarters of 2022, includes expenses primarily in connection with the restructuring of business lines and the outsourcing of certain human resources functions.
(5) Contract termination and related costs associated with third party vendors resulting from the Company’s engagement of FIS.
(6) Includes: (i) expenses in connection with the engagement of FIS of $1.1 million, $1.0 million, $0.8 million and $0.5 million in the three months ended December 31, 2022, September 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $2.9 million and $0.7 million in the years ended December 31, 2022 and 2021, respectively; (ii) an aggregate of $0.3 million in connection with information technology projects, and certain search and recruitment expenses in the three months ended March 31, 2022, and (iii) expenses in connection with the Merger and related transactions of $0.6 million and $0.8 million in the three months and the year ended December 31, 2021, respectively.
(7) In the three months ended June 30, 2022 and the year ended December 31, 2022, includes $1.6 million of ROU asset impairment associated with the closure of a branch in Pembroke Pines, Florida in 2022. In the year ended December 31, 2021, includes $0.8 million of ROU asset impairment associated with the lease of the NY loan production office.
(8) Expenses related to the Fort Lauderdale, Florida branch lease termination in 2021 and in Wellington, Florida in 2022.
(9) Fair value adjustment related to one OREO property in New York.
(10) Fair value adjustment related to the New York loan portfolio held for sale carried at the lower of cost or fair value.
(11) In the years ended December 31, 2022 and 2021, and in the three months ended March 31, 2022, amounts were calculated based upon the effective tax rate for the periods of 21.15%, 23.41% and 21.10%, respectively. For all of the other periods shown, amounts represent the difference between the prior and current period year-to-date tax effect.
(12) In the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. In all the periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect on per share earnings.
(13) Other intangible assets consist of, among other things, mortgage servicing rights (“MSRs”) of $1.3 million, $1.0 million, $0.9 million, $0.9 million and $0.6 million at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and are included in other assets in the Company’s consolidated balance sheets.
15

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Exhibit 3 - Average Balance Sheet, Interest and Yield/Rate Analysis
The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the periods presented. The average balances for loans include both performing and nonperforming balances. Interest income on loans includes the effects of discount accretion and the amortization of non-refundable loan origination fees, net of direct loan origination costs, accounted for as yield adjustments. Average balances represent the daily average balances for the periods presented.
Three Months Ended
December 31, 2022September 30, 2022
December 31, 2021
(in thousands, except percentages) Average
Balances
Income/
Expense
Yield/
Rates
Average BalancesIncome/ ExpenseYield/ RatesAverage
 Balances
Income/
Expense
Yield/
Rates
Interest-earning assets:
Loan portfolio, net (1)(2)$6,688,839 $98,579 5.85 %$6,021,294 $76,779 5.06 %$5,475,207 $56,521 4.10 %
Debt securities available for sale (3)(4)1,060,240 9,817 3.67 %1,110,153 8,379 2.99 %1,171,691 7,010 2.37 %
Debt securities held to maturity (5)239,680 2,052 3.40 %235,916 1,921 3.23 %121,842 745 2.43 %
Debt securities held for trading 56 7.08 %65 6.10 %143 2.77 %
Equity securities with readily determinable fair value not held for trading12,365 — — %12,018 — — %17,138 59 1.37 %
Federal Reserve Bank and FHLB stock55,585 874 6.24 %49,398 605 4.86 %49,591 535 4.28 %
Deposits with banks183,926 2,051 4.42 %258,237 1,452 2.23 %155,479 58 0.15 %
Total interest-earning assets8,240,691 113,374 5.46 %7,687,081 89,137 4.60 %6,991,091 64,929 3.68 %
Total non-interest-earning assets (6)731,685 639,118 537,549 
Total assets$8,972,376 $8,326,199 $7,528,640 

16

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg

Three Months Ended
December 31, 2022September 30, 2022
December 31, 2021
(in thousands, except percentages) Average
Balances
Income/
Expense
Yield/
Rates
Average BalancesIncome/ ExpenseYield/ RatesAverage
 Balances
Income/
Expense
Yield/
Rates
Interest-bearing liabilities:
Checking and saving accounts -
Interest bearing DDA $2,178,106$8,860 1.61 %$2,077,321$4,934 0.94 %$1,342,416$208 0.06 %
Money market1,412,0336,034 1.70 %1,363,7993,555 1.03 %1,337,529788 0.23 %
Savings313,68855 0.07 %320,86154 0.07 %327,09011 0.01 %
Total checking and saving accounts3,903,82714,949 1.52 %3,761,9818,543 0.90 %3,007,0351,007 0.13 %
Time deposits1,538,2398,623 2.22 %1,247,0844,717 1.50 %1,380,3374,777 1.37 %
Total deposits5,442,06623,572 1.72 %5,009,06513,260 1.05 %4,387,3725,784 0.52 %
Securities sold under agreements to repurchase685.83 %— — — %55— — %
Advances from the FHLB and other borrowings (7)994,1855,293 2.11 %866,6393,977 1.82 %863,1371,805 0.83 %
Senior notes59,172941 6.31 %59,092941 6.32 %58,855942 6.35 %
Subordinated notes29,263361 4.89 %29,220362 4.92 %— — %
Junior subordinated debentures64,1781,028 6.35 %64,178700 4.33 %64,178618 3.82 %
Total interest-bearing liabilities6,588,93231,196 1.88 %6,028,19419,240 1.27 %5,373,5979,149 0.68 %
Non-interest-bearing liabilities:
Non-interest bearing demand deposits1,318,7871,316,9881,210,365
Accounts payable, accrued liabilities and other liabilities343,923245,425133,927
Total non-interest-bearing liabilities1,662,7101,562,4131,344,292
Total liabilities8,251,6427,590,6076,717,889
Stockholders’ equity720,734735,592810,751
Total liabilities and stockholders' equity$8,972,376$8,326,199$7,528,640
Excess of average interest-earning assets over average interest-bearing liabilities$1,651,759$1,658,887$1,617,494
Net interest income$82,178 $69,897 $55,780 
Net interest rate spread3.58 %3.33 %3.00 %
Net interest margin (8)3.96 %3.61 %3.17 %
Cost of total deposits (9)1.38 %0.83 %0.41 %
Ratio of average interest-earning assets to average interest-bearing liabilities125.07 %127.52 %130.10 %
Average non-performing loans/ Average total loans0.38 %0.42 %1.13 %






17

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg

Year Ended December 31,
2022

2021
(audited)
(in thousands, except percentages) Average
Balances
Income/
Expense
Yield/
Rates
Average BalancesIncome/ ExpenseYield/ Rates
Interest-earning assets:
Loan portfolio, net (1)(2)$5,963,190$293,210 4.92 %$5,514,110$216,097 3.92 %
Debt securities available for sale (3)(4)1,112,59033,187 2.98 %1,194,50526,953 2.26 %
Debt securities held to maturity (5)192,3975,657 2.94 %97,5012,036 2.09 %
Debt securities held for trading646.25 %1653.03 %
Equity securities with readily determinable fair value not held for trading9,560— — %22,332284 1.27 %
Federal Reserve Bank and FHLB stock51,4962,565 4.98 %53,1062,222 4.18 %
Deposits with banks231,4024,153 1.79 %201,950247 0.12 %
Total interest-earning assets7,560,699338,776 4.48 %7,083,669247,844 3.50 %
Total non-interest-earning assets (6)626,989449,347
Total assets$8,187,688$7,533,016
Interest-bearing liabilities:
Checking and saving accounts -
Interest bearing DDA$1,872,100$15,118 0.81 %$1,309,699$591 0.05 %
Money market1,323,56311,673 0.88 %1,311,2783,483 0.27 %
Savings319,631135 0.04 %324,61850 0.02 %
Total checking and saving accounts3,515,29426,926 0.77 %2,945,5954,124 0.14 %
Time deposits1,334,60522,124 1.66 %1,668,45923,766 1.42 %
Total deposits4,849,89949,050 1.01 %4,614,05427,890 0.60 %
Securities sold under agreements to repurchase323.13 %1230.81 %
Advances from the FHLB and other borrowings (7)911,44815,092 1.66 %822,7698,595 1.04 %
Senior notes59,0543,766 6.38 %58,7373,768 6.42 %
Subordinated notes23,8531,172 4.91 %— — %
Junior subordinated debentures64,1783,030 4.72 %64,1782,449 3.82 %
Total interest-bearing liabilities5,908,46472,111 1.22 %5,559,86142,703 0.77 %
Non-interest-bearing liabilities:
Non-interest bearing demand deposits1,286,5701,046,766
Accounts payable, accrued liabilities and other liabilities243,105130,548
Total non-interest-bearing liabilities1,529,6751,177,314
Total liabilities7,438,1396,737,175
Stockholders’ equity749,549795,841
Total liabilities and stockholders' equity$8,187,688$7,533,016
Excess of average interest-earning assets over average interest-bearing liabilities$1,652,235$1,523,808
Net interest income$266,665 $205,141 
Net interest rate spread3.26 %2.73 %
Net interest margin (8)3.53 %2.90 %
Cost of total deposits (9)0.80 %0.49 %
Ratio of average interest-earning assets to average interest-bearing liabilities127.96 %127.41 %
Average non-performing loans/ Average total loans0.51 %1.61 %







18

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg

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


19

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Exhibit 4 - Noninterest Income
    This table shows the amounts of each of the categories of noninterest income for the periods presented.
Three Months Ended Year Ended December 31,
December 31, 2022September 30, 2022December 31, 202120222021
(audited)
(in thousands, except percentages)Amount % Amount % Amount%Amount%Amount%
Deposits and service fees$4,766 19.6 %$4,629 29.0 %$4,521 5.9 %$18,592 27.6 %$17,214 14.3 %
Brokerage, advisory and fiduciary activities4,054 16.6 %4,619 29.0 %4,987 6.5 %17,708 26.3 %18,616 15.4 %
Change in cash surrender value of bank owned life insurance (“BOLI”)(1)
1,378 5.7 %1,352 8.5 %1,366 1.8 %5,406 8.0 %5,459 4.5 %
Cards and trade finance servicing fees556 2.3 %622 3.9 %503 0.7 %2,276 3.4 %1,771 1.5 %
Gain (loss) on early extinguishment of FHLB advances, net11,390 46.8 %— — %— — %10,678 15.9 %(2,488)(2.1)%
Gain on sale of Headquarters Building (2)
— — %— — %62,387 80.7 %— — %62,387 51.7 %
Securities (losses) gains, net (3)
(3,364)(13.8)%1,508 9.5 %(117)(0.2)%(3,689)(5.5)%3,740 3.1 %
Derivative gains (losses), net (4)
1,040 4.3 %(95)(0.6)%— — %455 0.7 %— — %
Loan-level derivative income (5)
3,413 14.0 %2,786 17.5 %1,973 2.6 %10,360 15.4 %3,951 3.3 %
Other noninterest income (6)(7)
1,132 4.5 %535 3.2 %1,670 2.2 %5,491 8.2 %9,971 8.3 %
Total noninterest income$24,365 100.0 %$15,956 100.0 %$77,290 100.0 %$67,277 100.0 %$120,621 100.0 %
__________________
(1)    Changes in cash surrender value of BOLI are not taxable.
(2)    The Company sold its Coral Gables headquarters for $135.0 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year term.
(3) Includes: (i) net loss on sale of debt securities of $2.5 million in the three months ended December 31, 2022 and
net gain on sale of debt securities of $22 thousand and $37 thousand in the three months ended September 30, 2022 and December 31, 2021, respectively, and net loss on sale of debt securities of $2.4 million and net gains on sale of debt securities of $4.3 million in the years ended December 31, 2022 and 2021, respectively, and (ii) unrealized losses of $0.8 million, unrealized gains of $1.5 million, and unrealized losses of $0.1 million in the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively, and unrealized losses of $1.3 million and $0.6 million in the years ended December 31, 2022 and 2021, respectively, related to the change in fair value of marketable equity securities. In addition, in the three months and the year ended December 31, 2021, includes a realized loss of $42 thousand on the sale of a mutual fund with a fair value of $23.4 million at the time of the sale.
(4) Income from interest rate swaps and other derivative transactions with customers. The Company incurred expenses related to derivative transactions with customers of $3.3 million, $1.8 million and $0.7 million in the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $8.1 million and $0.8 million in the years ended December 31, 2022 and 2021, respectively, which are included as part of noninterest expenses under professional and other services fees.
(5) Net unrealized gains and losses related to uncovered interest rate caps with clients.
(6)    Includes mortgage banking income of $0.2 million, $0.1 million and $0.9 million in the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively, and $3.4 million and $1.7 million in the years ended December 31, 2022 and 2021, respectively, related to Amerant Mortgage. Other sources of income in the periods shown include from foreign currency exchange transactions with customers and valuation income on the investment balances held in the non-qualified deferred compensation plan.
(7) Beginning in the three months ended March 31, 2022, rental income associated with the subleasing of portions of the Company’s headquarters building is presented as a reduction to rent expense under lease agreements under occupancy and equipment cost (included as part of other noninterest income in 2021 in connection with the previously-owned headquarters building). In addition, in the three months and year ended December 31, 2022, we had additional rental income in connection with the sublease of the NYC office space. Total rental income from subleases was $1.1 million, $0.7 million and $0.6 million in the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively, and $3.3 million and $2.9 million in the years ended December 31, 2022 and 2021, respectively.
20

https://cdn.kscope.io/bfd144ad301f6d6cb4b6c5aabd7442b6-amntrgba33.jpg
Exhibit 5 - Noninterest Expense

This table shows the amounts of each of the categories of noninterest expense for the periods presented.
Three Months EndedYear Ended December 31,
December 31, 2022September 30, 2022December 31, 202120222021
(audited)
(in thousands, except percentages)Amount % Amount % Amount % Amount%Amount%
Salaries and employee benefits (1)
$32,786 52.7 %$30,109 53.7 %$31,309 56.8 %$123,510 51.2 %$117,585 59.3 %
Occupancy and equipment (2)(3)
6,349 10.2 %6,559 11.7 %5,765 10.5 %27,393 11.3 %20,364 10.3 %
Professional and other services fees (4)
6,224 10.0 %5,045 9.0 %6,589 12.0 %22,142 9.2 %19,096 9.6 %
Loan-level derivative expense (5)
3,281 5.3 %1,810 3.2 %661 1.2 %8,146 3.4 %815 0.4 %
Telecommunications and data processing3,622 5.8 %3,861 6.9 %3,897 7.1 %14,735 6.1 %14,949 7.5 %
Depreciation and amortization (6)
1,956 3.1 %1,481 2.6 %1,520 2.8 %5,883 2.4 %7,269 3.7 %
FDIC assessments and insurance1,930 3.1 %1,746 3.1 %1,340 2.4 %6,598 2.7 %6,423 3.2 %
Loans held for sale valuation (reversal) expense (7)
— — %— — %— — %159 0.1 %— — %
Advertising expenses3,329 5.3 %2,066 3.7 %1,463 2.7 %11,620 4.8 %3,382 1.7 %
Other real estate owned valuation expense (8)
— — %234 0.4 %— — %3,408 1.4 %— — %
Contract termination costs (9)
— — %289 0.5 %— —