Board of Directors Declares Quarterly Cash
Dividend of $0.09 per Common Share
Amerant Bancorp Inc. (NYSE: AMTB) (the “Company” or “Amerant”)
today reported net income attributable to the Company of $10.6
million in the first quarter of 2024, or $0.31 per diluted share,
compared to a net loss attributable to the Company of $17.1
million, or $0.51 per diluted share, in the fourth quarter of
2023.
“We continued to invest in our future in the first quarter of
2024, opening new locations in Tampa and Ft. Lauderdale, while
adding 12 new team members to our already talented business
development teams across south Florida,” stated Jerry Plush,
Chairman and CEO. “In addition to our recently announced sale of
our Houston franchise, we also executed on our strategic
initiatives, resulting in strong organic loan and deposit
growth.”
- Total assets were $9.8 billion, an increase of $101.4 million,
or 1.0%, compared to 4Q23.
- Total gross loans were $7.01 billion, a decrease of $258.5
million, or 3.6%, compared to $7.26 billion in 4Q23. This decrease
reflects the completion of the sale of $401 million of
Houston-based multifamily loans, offsetting $142.5 million in
organic production for the quarter.
- Cash and cash equivalents were $659.7 million, up $337.8
million, or 104.9%, compared to $321.9 million in 4Q23.
- Total deposits were $7.88 billion, down $16.6 million, or 0.2%,
compared to $7.89 billion in 4Q23. Organic deposit growth, which
includes all deposits except institutional and brokered deposits,
was $331.8 million, partially offset by declines in brokered
deposits of $86.4 million and institutional deposits of $262
million.
- Total advances from Federal Home Loan Bank (“FHLB”) were $715.0
million, up $70.0 million, or 10.9%, compared to $645.0 million in
4Q23. The Bank had an additional $2.2 billion in availability from
the FHLB as of March 31, 2024.
- Average yield on loans decreased to 7.05% in 1Q24, compared to
7.09% in 4Q23.
- Total non-performing assets were $50.5 million, down $4.1
million, or 7.5%, compared to $54.6 million as of 4Q23.
- The allowance for credit losses ("ACL") was $96.1 million, an
increase of $0.5 million, or 0.6%, compared to $95.5 million as of
4Q23.
- Core deposits were $5.63 billion, up $35.4 million, or 0.6%,
compared to $5.60 billion in 4Q23. This increase includes the net
reduction of $262 million in institutional deposits.
- Average cost of total deposits increased to 3.00% in 1Q24
compared to 2.88% in 4Q23.
- Loan to deposit ratio was 88.93% in 1Q24 compared to 92.02% in
4Q23.
- Assets Under Management and custody (“AUM”) totaled $2.36
billion, up $68.5 million, or 3.0%, from $2.29 billion in
4Q23.
- Pre-provision net revenue (“PPNR”)(1) was $25.9 million in 1Q24
compared to negative $7.6 million in 4Q23.
- Net Interest Margin (“NIM”) was 3.51% in 1Q24 compared to 3.72%
in 4Q23, which included 16 basis points from a loan recovery
received in the previous period.
- Net Interest Income (“NII”) was $78.0 million, down $3.7
million, or 4.5%, from $81.7 million in 4Q23.
- Provision for credit losses was $12.4 million in 1Q24, down
$0.1 million, or 0.8%, compared to $12.5 million in 4Q23.
- Non-interest income was $14.5 million in 4Q23, down $5.1
million, or 26.1%, from $19.6 million in 4Q23.
- Non-interest expense was $66.6 million, down $43.1 million, or
39.3%, from $109.7 million in 4Q23.
- The efficiency ratio was 72.0% in 1Q24 compared to 108.3% in
4Q23.
- Return on average assets (“ROA”) was 0.44% in 1Q24 compared to
negative 0.71% in 4Q23.
- Return on average equity (“ROE”) was 5.69% in 1Q24 compared to
negative 9.22% in 4Q23.
- The Company’s Board of Directors declared a cash dividend of
$0.09 per share of common stock on April 24, 2024. The dividend is
payable on May 30, 2024, to shareholders of record on May 15,
2024.
Additional details on first quarter 2024 results can be found in
the Exhibits to this earnings release, and the earnings
presentation available under the Investor Relations section of the
Company’s website at https://investor.amerantbank.com.
1 Non-GAAP measure, see “Non-GAAP Financial Measures” for more
information and Exhibit 2 for a reconciliation to GAAP
measures.
First Quarter 2024 Earnings Conference Call
The Company will hold an earnings conference call on Thursday,
April 25, 2024 at 9:00 a.m. (Eastern Time) to discuss its first
quarter 2024 results. The conference call and presentation
materials can be accessed via webcast by logging on from the
Investor Relations section of the Company’s website at
https://investor.amerantbank.com. The online replay will remain
available for approximately one month following the call through
the above link.
About Amerant Bancorp Inc. (NYSE: AMTB)
Amerant Bancorp Inc. is a bank holding company headquartered in
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 24 banking centers – 17 in South Florida, 1 in Tampa,
FL and 6 in the Houston, Texas area. For more information, visit
investor.amerantbank.com.
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, 2023 filed on March 7, 2024 (the “Form 10-K”),
and in our other filings with the U.S. Securities and Exchange
Commission (the “SEC”), which are available at the SEC’s website
www.sec.gov.
Interim Financial Information
Unaudited financial information as of and for interim periods,
including the three months ended March 31, 2024, December 31, 2023,
and March 31, 2023, may not reflect our results of operations for
our fiscal year ending, or financial condition, as of December 31,
2024, or any other period of time or date.
Non-GAAP Financial Measures
The Company supplements its financial results that are
determined in accordance with accounting principles generally
accepted in 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”, “tangible stockholders’ equity (book value) per common
share”, “tangible common equity ratio, adjusted for unrealized
losses on debt securities held to maturity”, and “tangible
stockholders' equity (book value) per common share, adjusted for
unrealized losses on debt securities held to maturity”. This
supplemental information is not required by, or is not presented in
accordance with GAAP. The Company refers to these financial
measures and ratios as “non-GAAP financial measures” and they
should not be considered in isolation or as a substitute for the
GAAP measures presented herein.
We use certain non-GAAP financial measures, including those
mentioned above, both to explain our results to shareholders and
the investment community and in the internal evaluation and
management of our businesses. Our management believes that these
non-GAAP financial measures and the information they provide are
useful to investors since these measures permit investors to view
our performance using the same tools that our management uses to
evaluate our past performance and prospects for future performance,
especially in light of the additional costs we have incurred in
connection with the Company’s restructuring activities that began
in 2018 and continued in 2024, including the effect of non-core
banking activities such as the sale of loans and securities and
other repossessed assets, the valuation of securities, derivatives,
loans held for sale and other real estate owned and repossessed
assets, the early repayment of FHLB advances, impairment of
investments, Bank owned life insurance restructure and other
non-routine actions intended to improve customer service and
operating performance. While we believe that these non-GAAP
financial measures are useful in evaluating our performance, this
information should be considered as supplemental and not as a
substitute for or superior to the related financial information
prepared in accordance with GAAP. Additionally, these non-GAAP
financial measures may differ from similar measures presented by
other companies.
Exhibit 2 reconciles these non-GAAP financial measures to GAAP
reported results.
Exhibit 1- Selected Financial
Information
The following table sets forth selected financial information
derived from our interim unaudited and annual audited consolidated
financial statements.
(in thousands)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Consolidated Balance Sheets
(audited)
Total assets
$
9,817,772
$
9,716,327
$
9,345,700
$
9,519,526
$
9,495,302
Total investments
1,578,568
1,496,975
1,314,367
1,315,303
1,347,697
Total gross loans (1)
7,006,383
7,264,912
7,142,596
7,216,958
7,115,035
Allowance for credit losses
96,050
95,504
98,773
105,956
84,361
Total deposits
7,878,243
7,894,863
7,546,912
7,579,571
7,286,726
Core deposits (2)
5,633,165
5,597,766
5,244,034
5,498,017
5,357,386
Advances from the Federal Home Loan
Bank
715,000
645,000
595,000
770,000
1,052,012
Senior notes
59,605
59,526
59,447
59,368
59,289
Subordinated notes
29,497
29,454
29,412
29,369
29,326
Junior subordinated debentures
64,178
64,178
64,178
64,178
64,178
Stockholders' equity (3)(4)
738,085
736,068
719,787
720,956
729,056
Assets under management and custody
(5)
2,357,621
2,289,135
2,092,200
2,147,465
2,107,603
Three Months Ended
(in thousands, except percentages, share
data and per share amounts)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Consolidated Results of
Operations
Net interest income
$
77,968
$
81,677
$
78,577
$
83,877
$
82,333
Provision for credit losses (6)
12,400
12,500
8,000
29,077
11,700
Noninterest income
14,488
19,613
21,921
26,619
19,343
Noninterest expense
66,594
109,702
64,420
72,500
64,733
Net income (loss) attributable to Amerant
Bancorp Inc. (7)
10,568
(17,123
)
22,119
7,308
20,186
Effective income tax rate
21.50
%
14.21
%
22.57
%
21.00
%
21.00
%
Common Share Data
Stockholders' book value per common
share
$
21.90
$
21.90
$
21.43
$
21.37
$
21.56
Tangible stockholders' equity (book value)
per common share (8)
$
21.16
$
21.16
$
20.63
$
20.66
$
20.84
Tangible stockholders' equity (book value)
per common share, adjusted for unrealized losses on debt securities
held to maturity (8)
$
20.60
$
20.68
$
19.86
$
20.11
$
20.38
Basic earnings (loss) per common share
$
0.32
$
(0.51
)
$
0.66
$
0.22
$
0.60
Diluted earnings (loss) per common share
(9)
$
0.31
$
(0.51
)
$
0.66
$
0.22
$
0.60
Basic weighted average shares
outstanding
33,538,069
33,432,871
33,489,560
33,564,770
33,559,718
Diluted weighted average shares
outstanding (9)
33,821,562
33,432,871
33,696,620
33,717,702
33,855,994
Cash dividend declared per common share
(4)
$
0.09
$
0.09
$
0.09
$
0.09
$
0.09
Three Months Ended
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Other Financial and Operating Data
(10)
Profitability Indicators (%)
Net interest income / Average total
interest earning assets (NIM) (11)
3.51
%
3.72
%
3.57
%
3.83
%
3.90
%
Net income (loss) / Average total assets
(ROA) (12)
0.44
%
(0.71
)%
0.92
%
0.31
%
0.88
%
Net income (loss) / Average stockholders'
equity (ROE) (13)
5.69
%
(9.22
)%
11.93
%
3.92
%
11.15
%
Noninterest income / Total revenue
(14)
15.67
%
19.36
%
21.81
%
24.09
%
19.02
%
Capital Indicators (%)
Total capital ratio (15)
12.50
%
12.12
%
12.70
%
12.39
%
12.36
%
Tier 1 capital ratio (16)
10.88
%
10.54
%
11.08
%
10.77
%
10.88
%
Tier 1 leverage ratio (17)
8.73
%
8.84
%
9.05
%
8.91
%
9.04
%
Common equity tier 1 capital ratio (CET1)
(18)
10.11
%
9.79
%
10.30
%
10.00
%
10.10
%
Tangible common equity ratio (19)
7.28
%
7.34
%
7.44
%
7.34
%
7.44
%
Tangible common equity ratio, adjusted for
unrealized losses on debt securities held to maturity (20)
7.10
%
7.18
%
7.18
%
7.16
%
7.29
%
Liquidity Ratios (%)
Loans to Deposits (21)
88.93
%
92.02
%
94.64
%
95.22
%
97.64
%
Asset Quality Indicators (%)
Non-performing assets / Total assets
(22)
0.51
%
0.56
%
0.57
%
0.71
%
0.51
%
Non-performing loans / Total gross loans
(1) (23)
0.43
%
0.47
%
0.46
%
0.65
%
0.31
%
Allowance for credit losses / Total
non-performing loans (23)
317.01
%
277.63
%
297.55
%
224.51
%
380.31
%
Allowance for credit losses / Total loans
held for investment
1.38
%
1.39
%
1.40
%
1.48
%
1.20
%
Net charge-offs / Average total loans held
for investment (24)
0.69
%
0.85
%
0.82
%
0.42
%
0.64
%
Efficiency Indicators (% except
FTE)
Noninterest expense / Average total
assets
2.75
%
4.57
%
2.69
%
3.06
%
2.82
%
Salaries and employee benefits / Average
total assets
1.36
%
1.38
%
1.31
%
1.45
%
1.52
%
Other operating expenses/ Average total
assets (25)
1.39
%
3.20
%
1.38
%
1.62
%
1.30
%
Efficiency ratio (26)
72.03
%
108.30
%
64.10
%
65.61
%
63.67
%
Full-Time-Equivalent Employees (FTEs)
(27)
696
682
700
710
722
Three Months Ended
(in thousands, except percentages and per
share amounts)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Core Selected Consolidated Results of
Operations and Other Data (8)
Pre-provision net revenue (PPNR)
$
25,862
$
(7,595
)
$
36,456
$
38,258
$
37,187
Core pre-provision net revenue (Core
PPNR)
$
26,068
$
29,811
$
35,880
$
39,196
$
37,103
Core net income
$
10,730
$
15,272
$
21,664
$
8,048
$
20,120
Core basic earnings per common share
0.32
0.46
0.65
0.24
0.60
Core earnings per diluted common share
(9)
0.32
0.46
0.64
0.24
0.59
Core net income / Average total assets
(Core ROA) (12)
0.44
%
0.64
%
0.91
%
0.34
%
0.88
%
Core net income / Average stockholders'
equity (Core ROE) (13)
5.78
%
8.23
%
11.69
%
4.32
%
11.11
%
Core efficiency ratio (28)
71.87
%
69.67
%
62.08
%
60.29
%
62.47
%
__________________
(1)
Total gross loans include loans held for
investment net of unamortized deferred loan origination fees and
costs, as well as loans held for sale. As of March 31, 2024,
December 31, 2023, September 30, 2023, June 30, 2023 and March 31,
2023, mortgage loans held for sale carried at fair value totaled
$48.9 million, $26.2 million, $26.0 million, $49.9 million and
$65.3 million, respectively. In addition, December 31, 2023 and
September 30, 2023, includes $365.2 million and $43.3 million in
loans held for sale carried at the lower of estimated fair value or
cost.
(2)
Core deposits consist of total deposits
excluding all time deposits.
(3)
In the fourth quarter of 2022, the Company
announced that the Board of Directors authorized a new repurchase
program pursuant to which the Company may purchase, from time to
time, up to an aggregate amount of $25 million of its shares of
Class A common stock (the “2023 Class A Common Stock Repurchase
Program”). There were no repurchases of Class A common stock in the
first quarter of 2024 and fourth quarter of 2023. In the third,
second and first quarters of 2023, the Company repurchased an
aggregate of 142,188 shares of Class A common stock, 95,262 shares
of Class A common stock and 22,403 shares of Class A common stock,
respectively, at a weighted average price of $19.05 per share,
$17.42 per share and $25.25 per share, respectively, under the 2023
Class A Common Stock Repurchase Program. In the third, second and
first quarters of 2023, the aggregate purchase price for these
transactions was approximately $2.7 million, $1.7 million and $0.6
million, respectively, including transaction costs.
(4)
For the first quarter of 2024 as well as
each of the fourth, third, second and first quarters of 2023, the
Company’s Board of Directors declared cash dividends of $0.09 per
share of the Company’s common stock and paid an aggregate amount of
$3.0 million per quarter in connection with these dividends. The
dividend declared in the first quarter of 2024 was paid on February
29, 2024 to shareholders of record at the close of business on
February 14, 2024. See 2023 Form 10-K for more information on
previous dividend payments in 2023.
(5)
Assets held for clients in an agency or
fiduciary capacity which are not assets of the Company and
therefore are not included in the consolidated financial
statements.
(6)
In the first quarter of 2024 and in the
fourth and third quarter of 2023, includes, $12.4 million, $12.0
million and $7.4 million of provision for credit losses on loans.
Provision for unfunded commitments (contingencies) in the fourth
and third quarter of 2023, were $0.5 million and $0.6 million,
respectively, while there was none in the first quarter of 2024.
For all other periods shown, includes provision for credit losses
on loans. There was no provision for credit losses on unfunded
commitments in the second quarter of 2023. In the first quarter of
2023, the provision for credit losses on unfunded commitments was
$0.3 million.
(7)
In the three months ended December 31,
2023, September 30, 2023, June 30, 2023 and March 31, 2023, net
income excludes losses of $0.8 million, $0.4 million, $0.3 million
and $0.2 million, respectively, attributable to a minority interest
in Amerant Mortgage LLC. In the fourth quarter of 2023, the Company
increased its ownership interest in Amerant Mortgage to 100% from
80% at September 30, 2023. This transaction had no material impact
to the Company’s results of operations in the three months ended
December 31, 2023. In connection with the change in ownership
interest, which brought the minority interest share to zero, the
Company derecognized the equity attributable to noncontrolling
interest of $3.8 million at December 31, 2023, with a corresponding
reduction to additional paid-in capital.
(8)
This presentation contains adjusted
financial information determined by methods other than GAAP. This
adjusted financial information is reconciled to GAAP in Exhibit 2 -
Non-GAAP Financial Measures Reconciliation.
(9)
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.
(10)
Operating data for the periods presented
have been annualized.
(11)
NIM is defined as NII divided by average
interest-earning assets, which are loans, securities, deposits with
banks and other financial assets which yield interest or similar
income.
(12)
Calculated based upon the average daily
balance of total assets.
(13)
Calculated based upon the average daily
balance of stockholders’ equity.
(14)
Total revenue is the result of net
interest income before provision for credit losses plus noninterest
income.
(15)
Total stockholders’ equity divided by
total risk-weighted assets, calculated according to the
standardized regulatory capital ratio calculations.
(16)
Tier 1 capital divided by total
risk-weighted assets. Tier 1 capital is composed of Common Equity
Tier 1 (CET1) capital plus outstanding qualifying trust preferred
securities of $62.3 million at each of all the dates presented.
(17)
Tier 1 capital divided by quarter to date
average assets.
(18)
CET1 capital divided by total
risk-weighted assets.
(19)
Tangible common equity is calculated as
the ratio of common equity less goodwill and other intangibles
divided by total assets less goodwill and other intangible assets.
Other intangible assets primarily consist of naming rights and
mortgage servicing rights and are included in other assets in the
Company’s consolidated balance sheets.
(20)
Calculated in the same manner described in
footnote 19 but also includes unrealized losses on debt securities
held to maturity in the balance of common equity and total
assets.
(21)
Calculated as the ratio of total loans
gross divided by total deposits.
(22)
Non-performing assets include all accruing
loans past due by 90 days or more, all nonaccrual loans and other
real estate owned (“OREO”) properties acquired through or in lieu
of foreclosure, and other repossessed assets.
(23)
Non-performing loans include all accruing
loans past due by 90 days or more and all nonaccrual loans
(24)
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. See 2023 Form 10-K for more details on
charge-offs for all previous periods.
(25)
Other operating expenses is the result of
total noninterest expense less salary and employee benefits.
(26)
Efficiency ratio is the result of
noninterest expense divided by the sum of noninterest income and
NII.
(27)
As of March 31, 2024, December 31, 2023,
September 30, 2023, June 30, 2023 and March 31, 2023, includes 65,
67, 98, 93, and 94 FTEs for Amerant Mortgage LLC, respectively.
(28)
Core efficiency ratio is the efficiency
ratio less the effect of restructuring costs and other non-routine
items, described in Exhibit 2 - Non-GAAP Financial Measures
Reconciliation.
Exhibit 2- Non-GAAP Financial Measures
Reconciliation
The following table sets forth selected financial information
derived from the Company’s interim unaudited and annual audited
consolidated financial statements, adjusted for certain costs
incurred by the Company in the periods presented related to tax
deductible restructuring costs, provision for (reversal of) credit
losses, provision for income tax expense (benefit), the effect of
non-core banking activities such as the sale of loans and
securities and other repossessed assets, the valuation of
securities, derivatives, loans held for sale and other real estate
owned and repossessed assets, the early repayment of FHLB advances,
impairment of investments, Bank owned life insurance restructure
and other non-routine actions intended to improve customer service
and operating performance. The Company believes these adjusted
numbers are useful to understand the Company’s performance absent
these transactions and events.
Three Months Ended,
(in thousands)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Net income (loss) attributable to Amerant
Bancorp Inc.
$
10,568
$
(17,123
)
$
22,119
$
7,308
$
20,186
Plus: provision for credit losses (1)
12,400
12,500
8,000
29,077
11,700
Plus: provision for income tax expense
(benefit)
2,894
(2,972
)
6,337
1,873
5,301
Pre-provision net revenue
(PPNR)
25,862
(7,595
)
36,456
38,258
37,187
Plus: non-routine noninterest expense
items
—
43,094
6,303
13,383
3,372
Less: non-routine noninterest income
items
206
(5,688
)
(6,879
)
(12,445
)
(3,456
)
Core pre-provision net revenue (Core
PPNR)
$
26,068
$
29,811
$
35,880
$
39,196
$
37,103
Total noninterest income
$
14,488
$
19,613
$
21,921
$
26,619
$
19,343
Less: Non-routine noninterest income
items:
Derivatives (losses) gains, net
(152
)
(151
)
(77
)
242
14
Securities gains (losses), net
(54
)
33
(54
)
(1,237
)
(9,731
)
Bank owned life insurance charge (2)
—
(655
)
—
—
—
Gains on early extinguishment of FHLB
advances, net
—
6,461
7,010
13,440
13,173
Total non-routine noninterest income
items
$
(206
)
$
5,688
$
6,879
$
12,445
$
3,456
Core noninterest income
$
14,694
$
13,925
$
15,042
$
14,174
$
15,887
Total noninterest expenses
$
66,594
$
109,702
$
64,420
$
72,500
$
64,733
Less: non-routine noninterest expense
items
Restructuring costs (3):
Staff reduction costs (4)
—
1,120
489
2,184
213
Contract termination costs (5)
—
—
—
1,550
—
Consulting and other professional fees and
software expenses(6)
—
1,629
—
2,060
2,690
Disposition of fixed assets (7)
—
—
—
1,419
—
Branch closure expenses and related
charges (8)
—
—
252
1,558
469
Total restructuring costs
$
—
$
2,749
$
741
$
8,771
$
3,372
Other non-routine noninterest expense
items:
Losses on loans held for sale carried at
the lower cost or fair value (9)
—
37,495
5,562
—
—
Loss on sale of repossessed assets and
other real estate owned valuation expense (10)
—
—
—
2,649
—
Goodwill and intangible assets
impairment
—
1,713
—
—
—
Bank owned life insurance enchancement
costs (2)
—
1,137
—
—
—
Impairment charge on investment carried at
cost
—
—
—
1,963
—
Total non-routine noninterest expense
items
$
—
$
43,094
$
6,303
$
13,383
$
3,372
Core noninterest expenses
$
66,594
$
66,608
$
58,117
$
59,117
$
61,361
Three Months Ended,
(in thousands, except percentages and per
share amounts)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Net income (loss) attributable to Amerant
Bancorp Inc.
$
10,568
$
(17,123
)
$
22,119
$
7,308
$
20,186
Plus after-tax non-routine items in
noninterest expense:
Non-routine items in noninterest expense
before income tax effect
—
43,094
6,303
13,383
3,372
Income tax effect (11)
—
(8,887
)
(1,486
)
(2,811
)
(708
)
Total after-tax non-routine items in
noninterest expense
—
34,207
4,817
10,572
2,664
Less after-tax non-routine items in
noninterest income:
Non-routine items in noninterest income
before income tax effect
206
(5,688
)
(6,879
)
(12,445
)
(3,456
)
Income tax effect (11)
(44
)
1,032
1,607
2,613
726
Total after-tax non-routine items in
noninterest income
162
(4,656
)
(5,272
)
(9,832
)
(2,730
)
BOLI enhancement tax impact (2)
—
2,844
—
—
—
Core net income
$
10,730
$
15,272
$
21,664
$
8,048
$
20,120
Basic (loss) earnings per share
$
0.32
$
(0.51
)
$
0.66
$
0.22
$
0.60
Plus: after tax impact of non-routine
items in noninterest expense and BOLI tax impact (13)
—
1.11
0.14
0.31
0.08
(Less): after tax impact of non-routine
items in noninterest income
—
(0.14
)
(0.15
)
(0.29
)
(0.08
)
Total core basic earnings per common
share
$
0.32
$
0.46
$
0.65
$
0.24
$
0.60
Diluted (loss) earnings per share (12)
$
0.31
$
(0.51
)
$
0.66
$
0.22
$
0.60
Plus: after tax impact of non-routine
items in noninterest expense and BOLI tax impact (13)
—
1.11
0.14
0.31
0.08
(Less): after tax impact of non-routine
items in noninterest income
0.01
(0.14
)
(0.16
)
(0.29
)
(0.09
)
Total core diluted earnings per common
share
$
0.32
$
0.46
$
0.64
$
0.24
$
0.59
Net income (loss) / Average total assets
(ROA)
0.44
%
(0.71
)%
0.92
%
0.31
%
0.88
%
Plus: after tax impact of non-routine
items in noninterest expense and BOLI tax impact (13)
—
%
1.55
%
0.20
%
0.45
%
0.12
%
Plus (less): after tax impact of
non-routine items in noninterest income
—
%
(0.20
)%
(0.21
)%
(0.42
)%
(0.12
)%
Core net income / Average total assets
(Core ROA)
0.44
%
0.64
%
0.91
%
0.34
%
0.88
%
Net income (loss) / Average stockholders'
equity (ROE)
5.69
%
(9.22
)%
11.93
%
3.92
%
11.15
%
Plus: after tax impact of non-routine
items in noninterest expense and BOLI tax impact (13)
—
%
19.96
%
2.60
%
5.68
%
1.47
%
Plus (less): after tax impact of
non-routine items in noninterest income
0.09
%
(2.51
)%
(2.84
)%
(5.28
)%
(1.51
)%
Core net income / Average stockholders'
equity (Core ROE)
5.78
%
8.23
%
11.69
%
4.32
%
11.11
%
Efficiency ratio
72.03
%
108.30
%
64.10
%
65.61
%
63.67
%
(Less): impact of non-routine items in
noninterest expense
—
%
(42.54
)%
(6.27
)%
(12.11
)%
(3.32
)%
(Less) plus: impact of non-routine items
in noninterest income
(0.16
)%
3.91
%
4.25
%
6.79
%
2.12
%
Core efficiency ratio
71.87
%
69.67
%
62.08
%
60.29
%
62.4
%
Three Months Ended,
(in thousands, except percentages, share
data and per share amounts)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Stockholders' equity
$
738,085
$
736,068
$
719,787
$
720,956
$
729,056
Less: goodwill and other intangibles
(14)
(24,935
)
(25,029
)
(26,818
)
(24,124
)
(24,292
)
Tangible common stockholders' equity
$
713,150
$
711,039
$
692,969
$
696,832
$
704,764
Total assets
9,817,772
9,716,327
9,345,700
9,519,526
9,495,302
Less: goodwill and other intangibles
(14)
(24,935
)
(25,029
)
(26,818
)
(24,124
)
(24,292
)
Tangible assets
$
9,792,837
$
9,691,298
$
9,318,882
$
9,495,402
$
9,471,010
Common shares outstanding
33,709,395
33,603,242
33,583,621
33,736,159
33,814,260
Tangible common equity ratio
7.28
%
7.34
%
7.44
%
7.34
%
7.44
%
Stockholders' book value per common
share
$
21.90
$
21.90
$
21.43
$
21.37
$
21.56
Tangible stockholders' equity book
value per common share
$
21.16
$
21.16
$
20.63
$
20.66
$
20.84
Tangible common stockholders' equity
$
713,150
$
711,039
$
692,969
$
696,832
$
704,764
Less: Net unrealized accumulated losses on
debt securities held to maturity, net of tax (15)
(18,729
)
(16,197
)
(26,138
)
(18,503
)
(15,542
)
Tangible common stockholders' equity,
adjusted for net unrealized accumulated losses on debt securities
held to maturity
$
694,421
$
694,842
$
666,831
$
678,329
$
689,222
Tangible assets
$
9,792,837
$
9,691,298
$
9,318,882
$
9,495,402
$
9,471,010
Less: Net unrealized accumulated losses on
debt securities held to maturity, net of tax (15)
(18,729
)
(16,197
)
(26,138
)
(18,503
)
(15,542
)
Tangible assets, adjusted for net
unrealized accumulated losses on debt securities held to
maturity
$
9,774,108
$
9,675,101
$
9,292,744
$
9,476,899
$
9,455,468
Common shares outstanding
33,709,395
33,603,242
33,583,621
33,736,159
33,814,260
Tangible common equity ratio, adjusted
for net unrealized accumulated losses on debt securities held to
maturity
7.10
%
7.18
%
7.18
%
7.16
%
7.29
%
Tangible stockholders' book value per
common share, adjusted for net unrealized accumulated losses on
debt securities held to maturity
$
20.60
$
20.68
$
19.86
$
20.11
$
20.38
____________
(1)
In the first quarter of 2024 and in the
fourth and third quarter of 2023, includes $12.4 million, $12.0
million and $7.4 million of provision for credit losses on loans,
respectively. Provision for unfunded commitments (contingencies) in
the fourth and third quarter of 2023, were $0.5 million and $0.6
million, respectively, while there was none in the first quarter of
2024. For all other periods shown, includes provision for credit
losses on loans. There was no provision for credit losses on
unfunded commitments in the second quarter of 2023. In the first
quarter of 2023, the provision for credit losses on unfunded
commitments was $0.3 million.
(2)
In the fourth quarter of 2023, the Company
completed a restructuring of its bank-owned life insurance (“BOLI”)
program. This was executed through a combination of a 1035 exchange
and a surrender and reinvestment into higher-yielding general
account with a new investment grade insurance carrier. This
transaction allowed for higher team member participation through an
enhanced split-dollar plan. Estimated improved yields resulting
from the enhancement have an earn-back period of approximately 2
years. In the fourth quarter of 2023, we recorded total additional
expenses and charges of $4.6 million in connection with this
transaction, including: (i) a reduction of $0.7 million to the cash
surrender value of BOLI; (ii) transaction costs of $1.1 million,
and (iii) income tax expense of $2.8 million.
(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)
Staff reduction costs consist of severance
expenses related to organizational rationalization.
(5)
Contract termination and related costs
associated with third party vendors resulting from the Company’s
engagement of FIS.
(6)
In the three months ended December 31,
2023, includes an aggregate of $1.6 million of nonrecurrent
expenses in connection with the engagement of FIS and, to a lesser
extent, software expenses related to legacy applications running in
parallel to new core banking applications. There were no
significant nonrecurrent expenses in connection with engagement of
FIS in the three months ended March 31, 2024 and September 30,
2023. In the three months ended June 30, 2023 and March 31, 2023,
includes expenses of $2.0 million and $2.6 million, respectively,
in connection with the engagement of FIS.
(7)
Includes expenses in connection with the
disposition of fixed assets due to the write off of in-development
software in the three months ended June 30, 2023.
(8)
In the three months ended September 30,
2023, consists of expenses in connection with the closure of a
branch in Houston, Texas in 2023. In addition, in the three months
ended June 30, 2023 includes $0.9 million of accelerated
amortization of leasehold improvements and $0.6 million of
right-of-use, or ROU asset impairment, associated with the closure
of a branch in Miami, FL in 2023. Furthermore, in the three months
ended March 31, 2023, includes $0.5 million of ROU asset impairment
associated with the closure of a branch in Houston, Texas in
2023.
(9)
In the three months ended December 31,
2023, includes (i) fair value adjustment of $35.5 million related
to an aggregate of $401 million in Houston-based CRE loans held for
sale which are carried at the lower of fair value or cost, and (ii)
a loss on sale of $2.0 million related to a New York-based CRE loan
previously carried at the lower of fair value or cost. In the three
months ended September 30, 2023, includes a fair value adjustment
of $5.6 million related to a New York-based CRE loan held for sale
carried at the lower of fair value or cost.
(10)
In the three months ended June 30, 2023,
amount represents the loss on sale of repossessed assets in
connection with our equipment-financing activities.
(11)
In the three months ended March 31, 2024
and March 31, 2023, amounts were calculated based upon the
effective tax rate for the period of 21.50% and 21.00%,
respectively. For all of the other periods shown, amounts represent
the difference between the prior and current period year-to-date
tax effect.
(12)
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)
In the three months ended December 31,
2023, per share amounts and percentages were calculated using the
after-tax impact of non-routine items in noninterest expense of
$34.2 million and BOLI tax impact of $2.8 million in the same
period. In all other periods shown, per share amounts and
percentages were calculated using the after tax impact of
non-routine items in noninterest expense.
(14)
At March 31, 2024, December 31, 2023 and
September 30, 2023, other intangible assets primarily consist of
naming rights of $2.4 million, $2.5 million and $2.7 million,
respectively, and mortgage servicing rights (“MSRs”) of $1.4
million, $1.4 million and $1.3 million, respectively. At June 30,
2023 and March 31, 2023, other intangible assets primarily consist
of MSRs of $1.3 million and $1.4 million, respectively. Other
intangible assets are included in other assets in the Company’s
consolidated balance sheets.
(15)
As of March 31, 2024, December 31, 2023,
September 30, 2023, June 30, 2023 and March 31, 2023, amounts were
calculated based upon the fair value on debt securities held to
maturity, and assuming a tax rate of 25.40%, 25.36%, 25.51%, 25.46%
and 25.53%, respectively.
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
March 31, 2024
December 31, 2023
March 31, 2023
(in thousands, except percentages)
Average
Balances
Income/ Expense
Yield/ Rates
Average Balances
Income/ Expense
Yield/ Rates
Average
Balances
Income/ Expense
Yield/ Rates
Interest-earning assets:
Loan portfolio, net (1)(2)
$
6,995,974
$
122,705
7.05
%
$
7,107,222
$
127,090
7.09
%
$
6,901,352
$
108,501
6.38
%
Debt securities available for sale (3)
(4)
1,239,762
13,186
4.28
%
1,060,113
11,603
4.34
%
1,058,831
10,173
3.90
%
Debt securities held to maturity (5)
224,877
1,967
3.52
%
227,765
1,951
3.40
%
240,627
2,112
3.56
%
Debt securities held for trading
—
—
—
%
—
—
—
%
18
—
—
%
Equity securities with readily
determinable fair value not held for trading
2,477
55
8.93
%
2,450
12
1.94
%
4,886
—
—
%
Federal Reserve Bank and FHLB stock
50,180
883
7.08
%
49,741
894
7.13
%
57,803
1,014
7.11
%
Deposits with banks
422,841
5,751
5.47
%
265,657
3,940
5.88
%
302,791
3,330
4.46
%
Other short-term investments
5,932
78
5.29
%
5,928
79
5.29
%
—
—
—
%
Total interest-earning assets
8,942,043
144,625
6.50
%
8,718,876
145,569
6.62
%
8,566,308
125,130
5.92
%
Total non-interest-earning assets
(6)
812,523
794,844
739,522
Total assets
$
9,754,566
$
9,513,720
$
9,305,830
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
(in thousands, except percentages)
Average
Balances
Income/ Expense
Yield/ Rates
Average Balances
Income/ Expense
Yield/ Rates
Average
Balances
Income/ Expense
Yield/ Rates
Interest-bearing liabilities:
Checking and saving accounts
Interest bearing DDA
$
2,445,362
$
17,736
2.92
%
$
2,435,871
$
16,350
2.66
%
$
2,342,620
$
12,855
2.23
%
Money market
1,431,949
14,833
4.17
%
1,259,859
13,917
4.38
%
1,333,465
7,881
2.40
%
Savings
262,528
28
0.04
%
271,307
30
0.04
%
299,501
46
0.06
%
Total checking and saving accounts
4,139,839
32,597
3.17
%
3,967,037
30,297
3.03
%
3,975,586
20,782
2.12
%
Time deposits
2,290,587
26,124
4.59
%
2,276,720
24,985
4.35
%
1,767,603
12,834
2.94
%
Total deposits
6,430,426
58,721
3.67
%
6,243,757
55,282
3.51
%
5,743,189
33,616
2.37
%
Securities sold under agreements to
repurchase
—
—
—
%
106
2
7.49
%
—
—
—
%
Advances from the FHLB (7)
644,753
5,578
3.48
%
635,272
6,225
3.89
%
959,392
6,763
2.86
%
Senior notes
59,567
943
6.37
%
59,488
941
6.28
%
59,250
942
6.45
%
Subordinated notes
29,476
361
4.93
%
29,433
361
4.87
%
29,306
361
5.00
%
Junior subordinated debentures
64,178
1,054
6.61
%
64,178
1,081
6.68
%
64,178
1,115
7.05
%
Total interest-bearing
liabilities
7,228,400
66,657
3.71
%
7,032,234
63,892
3.60
%
6,855,315
42,797
2.53
%
Non-interest-bearing liabilities:
Non-interest bearing demand deposits
1,435,226
1,381,157
1,377,966
Accounts payable, accrued liabilities and
other liabilities
344,197
363,711
338,351
Total non-interest-bearing liabilities
1,779,423
1,744,868
1,716,317
Total liabilities
9,007,823
8,777,102
8,571,632
Stockholders’ equity
746,743
736,618
734,198
Total liabilities and stockholders'
equity
$
9,754,566
$
9,513,720
$
9,305,830
Excess of average interest-earning assets
over average interest-bearing liabilities
$
1,713,643
$
1,686,642
$
1,710,993
Net interest income
$
77,968
$
81,677
$
82,333
Net interest rate spread
2.79
%
3.02
%
3.39
%
Net interest margin (8)
3.51
%
3.72
%
3.90
%
Cost of total deposits (9)
3.00
%
2.88
%
1.91
%
Ratio of average interest-earning assets
to average interest-bearing liabilities
123.71
%
123.98
%
124.96
%
Average non-performing loans/ Average
total loans
0.46
%
0.49
%
0.46
%
___________
(1) Includes loans held for investment net
of the allowance for credit losses, and loans held for sale. The
average balance of the allowance for credit losses was $92.3
million, $92.7 million, and $81.4 million in the three months ended
March 31, 2024, December 31, 2023 and March 31, 2023, respectively.
The average balance of total loans held for sale was $180.5
million, $100.7 million and $66.4 million in the three months ended
March 31, 2024, December 31, 2023 and March 31, 2023,
respectively.
(2) Includes average non-performing loans
of $32.6 million, $35.1 million and $31.8 million for the three
months ended March 31, 2024, December 31, 2023 and March 31, 2023,
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 $101.5 million, $142.1 million, and $104.9
million in the three months ended March 31, 2024, December 31, 2023
and March 31, 2023, respectively.
(4) Includes nontaxable securities with
average balances of $18.3 million, $17.8 million and $19.7 million
for the three months ended March 31, 2024, December 31, 2023 and
March 31, 2023, respectively. The tax equivalent yield for these
nontaxable securities was 4.68%, 4.78% and 4.56% for the three
months ended March 31, 2024, December 31, 2023 and March 31, 2023,
respectively. In 2024 and 2023, the tax equivalent yields were
calculated assuming a 21% tax rate and dividing the actual yield by
0.79.
(5) Includes nontaxable securities with
average balances of $48.5 million, $48.9 million and $50.7 million
for the three months ended March 31, 2024, December 31, 2023 and
March 31, 2023, respectively. The tax equivalent yield for these
nontaxable securities was 4.25%, 4.26% and 4.20% for the three
months ended March 31, 2024, December 31, 2023 and March 31, 2023,
respectively. In 2024 and 2023, 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.
Exhibit 4 - Noninterest Income
This table shows the amounts of each of the categories of
noninterest income for the periods presented.
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
(in thousands, except percentages)
Amount
%
Amount
%
Amount
%
Deposits and service fees
$
4,325
29.9
%
$
4,424
22.5
%
$
4,955
25.6
%
Brokerage, advisory and fiduciary
activities
4,327
29.9
%
4,249
21.7
%
4,182
21.6
%
Change in cash surrender value of bank
owned life insurance (“BOLI”)(1)
2,342
16.2
%
849
4.3
%
1,412
7.3
%
Cards and trade finance servicing fees
1,223
8.4
%
1,238
6.3
%
533
2.8
%
Gain on early extinguishment of FHLB
advances, net
—
—
%
6,461
32.9
%
13,173
68.1
%
Securities (losses) gains, net (2)
(54
)
(0.4
)%
33
0.2
%
(9,731
)
(50.3
)%
Loan-level derivative income (3)
466
3.2
%
837
4.3
%
2,071
10.7
%
Derivative (losses) gains, net (4)
(152
)
(1.1
)%
(151
)
(0.8
)%
14
0.1
%
Other noninterest income (5)
2,011
13.9
%
1,673
8.5
%
2,734
14.1
%
Total noninterest income
$
14,488
100.0
%
$
19,613
100.0
%
$
19,343
100.0
%
__________________
(1) Changes in cash surrender value of BOLI are not taxable. In
the three months ended, December 31, 2023, includes a charge of
$0.7 million in connection with the enhancement/restructuring of
BOLI in the fourth quarter of 2023.
(2) Includes net loss of $0.1 million and $9.5 million in the
three months ended December 31, 2023 and March 31, 2023,
respectively, in connection with the sale of debt securities
available for sale. There were no sales of debt securities
available for sale in the three months ended March 31, 2024. In
addition, includes unrealized losses of $0.1 million and unrealized
gains of $0.1 million in the three months ended March 31, 2024 and
December 31, 2023, respectively, related to the change in fair
value of equity securities with readily available fair value not
held for trading which are recorded in results of the period. In
addition, in the three months ended March 31, 2023, the Company
sold all of its equity securities with readily available fair value
not held for trading, with a total fair value of $11.2 million at
the time of sale, and recognized a net loss of $0.2 million in
connection with this transaction.
(3) Income from interest rate swaps and other derivative
transactions with customers. The Company incurs expenses related to
derivative transactions with customers which are included as part
of noninterest expenses under loan-level derivative expense. See
Exhibit 5 for more details.
(4) Net unrealized gains and losses related to uncovered
interest rate caps with clients.
(5) Includes mortgage banking income of $1.1 million, $0.6
million and $1.8 million in the three months ended March 31, 2024,
December 31, 2023 and March 31, 2023, respectively, primarily
consisting of net gains on sale, valuation and derivative
transactions associated with mortgage loans held for sale activity,
and other smaller sources of income related to the operations of
Amerant Mortgage. Other sources of income in the periods shown
include 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
March 31, 2024
December 31, 2023
March 31, 2023
(in thousands, except percentages)
Amount
%
Amount
%
Amount
%
Salaries and employee benefits (1)
$
32,958
49.5
%
$
33,049
30.1
%
$
34,876
53.9
%
Occupancy and equipment
6,476
9.7
%
7,015
6.4
%
6,798
10.5
%
Professional and other services fees
(2)
10,963
16.5
%
14,201
12.9
%
7,628
11.8
%
Loan-level derivative expense (3)
4
—
%
182
0.2
%
1,600
2.5
%
Telecommunications and data processing
(4)
3,533
5.3
%
3,838
3.5
%
3,064
4.7
%
Depreciation and amortization
1,477
2.2
%
1,480
1.3
%
1,292
2.0
%
FDIC assessments and insurance
3,008
4.5
%
2,535
2.3
%
2,737
4.2
%
Losses on loans held for sale carried at
the lower cost or fair value (5)
—
—
%
37,495
34.2
%
—
—
%
Advertising expenses
3,078
4.6
%
3,169
2.9
%
2,586
4.0
%
Other real estate owned and repossessed
assets (income) expense, net (6)(7)
(354
)
(0.5
)%
(205
)
(0.2
)%
—
—
%
Other operating expenses (8)
5,451
8.2
%
6,943
6.4
%
4,152
6.4
%
Total noninterest expense (9)
$
66,594
100.0
%
$
109,702
100.0
%
$
64,733
100.0
%
___
(1) Includes staff reduction costs of $1.1 million and $0.2
million in the three months ended December 31, 2023 and March 31,
2023, respectively, which consist of severance expenses primarily
related to organizational rationalization.
(2) Includes additional non-routine expenses of $1.2 million and
$2.6 million in the three months ended December 31, 2023 and March
31, 2023, respectively, related to the engagement of FIS.
Additionally, the three months ended March 31, 2024 and December
31, 2023, include recurring service fees in connection with the
engagement of FIS.
(3) Includes services fees in connection with our loan-level
derivative income generation activities.
(4) In the three months ended December 31, 2023, includes $0.4
million of software expenses related to legacy applications running
in parallel to new core banking applications.
(5) In the three months ended December 31, 2023, includes $35.5
million in total valuation allowance as a result of changes in
their fair value, and $2.0 million in losses on the sale of these
loans.
(6) Includes OREO rental income of $0.4 million and $0.4 million
in the three months ended March 31, 2024 and December 31, 2023,
respectively. We had no OREO rental income in the three months
ended March 31, 2023.
(7) Beginning in the three months ended June 30, 2023, OREO and
repossessed assets expense is presented separately in the Company’s
consolidated statement of operations and comprehensive (loss)
income.
(8) In the three months ended December 31, 2023, includes
goodwill and intangible assets impairments totaling $1.7 million
related to two of our subsidiaries (Amerant Mortgage and Elant, a
Cayman-based trust company). In addition, in the three months ended
December 31, 2023, includes additional costs of $1.1 million in
connection with the restructuring of the Company’s BOLI. In all of
the periods shown, includes mortgage loan origination and servicing
expenses, charitable contributions, community engagement, postage
and courier expenses, 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 and other small expenses.
(9) Includes $3.1 million, $3.5 million and $3.9 million in the
three months ended March 31, 2024, December 31, 2023 and March 31,
2023, respectively, related to Amerant Mortgage, primarily
consisting of salaries and employee benefits, mortgage lending
costs and professional and other services fees.
Exhibit 6 - Consolidated Balance
Sheets
(in thousands, except share data)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Assets
(audited)
Cash and due from banks
$
41,231
$
47,234
$
48,145
$
45,184
$
41,489
Interest earning deposits with banks
577,843
242,709
202,946
365,673
411,747
Restricted cash
33,897
25,849
51,837
34,204
32,541
Other short-term investments
6,700
6,080
6,024
—
—
Cash and cash equivalents
659,671
321,872
308,952
445,061
485,777
Securities
Debt securities available for sale, at
fair value
1,298,073
1,217,502
1,033,797
1,027,676
1,045,883
Debt securities held to maturity, at
amortized cost (1)
224,014
226,645
230,254
234,369
239,258
Trading securities
—
—
—
298
—
Equity securities with readily
determinable fair value not held for trading
2,480
2,534
2,438
2,500
—
Federal Reserve Bank and Federal Home Loan
Bank stock
54,001
50,294
47,878
50,460
62,556
Securities
1,578,568
1,496,975
1,314,367
1,315,303
1,347,697
Loans held for sale, at lower of fair
value or cost (2)
—
365,219
43,257
—
—
Mortgage loans held for sale, at fair
value
48,908
26,200
25,952
49,942
65,289
Loans held for investment, gross
6,957,475
6,873,493
7,073,387
7,167,016
7,049,746
Less: Allowance for credit losses
96,050
95,504
98,773
105,956
84,361
Loans held for investment, net
6,861,425
6,777,989
6,974,614
7,061,060
6,965,385
Bank owned life insurance
237,314
234,972
232,736
231,253
229,824
Premises and equipment, net
44,877
43,603
43,004
43,714
42,380
Deferred tax assets, net
48,302
55,635
63,501
56,779
46,112
Operating lease right-of-use assets
117,171
118,484
116,763
116,161
119,503
Goodwill
19,193
19,193
20,525
20,525
20,525
Accrued interest receivable and other
assets (3)
202,343
256,185
202,029
179,728
172,810
Total assets
$
9,817,772
$
9,716,327
$
9,345,700
$
9,519,526
$
9,495,302
Liabilities and Stockholders'
Equity
Deposits
Demand
Noninterest bearing
$
1,397,331
$
1,426,919
$
1,370,157
$
1,293,522
$
1,360,626
Interest bearing
2,619,115
2,560,629
2,416,797
2,773,120
2,489,565
Savings and money market
1,616,719
1,610,218
1,457,080
1,431,375
1,507,195
Time
2,245,078
2,297,097
2,302,878
2,081,554
1,929,340
Total deposits
7,878,243
7,894,863
7,546,912
7,579,571
7,286,726
Advances from the Federal Home Loan
Bank
715,000
645,000
595,000
770,000
1,052,012
Senior notes
59,605
59,526
59,447
59,368
59,289
Subordinated notes
29,497
29,454
29,412
29,369
29,326
Junior subordinated debentures held by
trust subsidiaries
64,178
64,178
64,178
64,178
64,178
Operating lease liabilities (4)
122,267
123,167
120,665
119,921
122,214
Accounts payable, accrued liabilities and
other liabilities (5)
210,897
164,071
210,299
176,163
152,501
Total liabilities
9,079,687
8,980,259
8,625,913
8,798,570
8,766,246
Stockholders’ equity
Class A common stock
3,373
3,361
3,359
3,374
3,383
Additional paid in capital
192,237
192,701
194,103
195,275
194,782
Retained earnings
618,359
610,802
630,933
611,829
607,544
Accumulated other comprehensive loss
(75,884
)
(70,796
)
(105,634
)
(86,926
)
(74,319
)
Total stockholders' equity before
noncontrolling interest
738,085
736,068
722,761
723,552
731,390
Noncontrolling interest
—
—
(2,974
)
(2,596
)
(2,334
)
Total stockholders' equity
738,085
736,068
719,787
720,956
729,056
Total liabilities and stockholders'
equity
$
9,817,772
$
9,716,327
$
9,345,700
$
9,519,526
$
9,495,302
__________
(1) Estimated fair value of $198,909, $204,945, $195,165,
$209,546 and $218,388 at March 31, 2024, December 31, 2023,
September 30, 2023, June 30, 2023 and March 31, 2023,
respectively.
(2) As of December 31, 2023 and September 30, 2023, includes a
valuation allowance of $35.5 million and $5.6 million as a result
of fair value adjustment.
(3) As of March 31, 2024, December 31, 2023, September 30, 2023,
June 30, 2023 and March 31, 2023, includes derivative assets with a
total fair value of $64.7 million, $59.9 million, $87.1 million,
$75.8 million and $60.8 million, respectively. As of December 31,
2023, includes a receivable from insurance carrier for $62.5
million in connection with the restructuring of the Company’s BOLI
in the fourth quarter of 2023.
(4) Consists of total long-term lease liabilities. Total
short-term lease liabilities are included in other liabilities.
(5) As of March 31, 2024, December 31, 2023, September 30, 2023,
June 30, 2023 and March 31, 2023, includes derivatives liabilities
with a total fair value of $63.8 million, $59.4 million, $85.6
million, $74.5 million and $59.5 million, respectively.
Exhibit 7 - Loans
Loans by Type - Held For Investment
The loan portfolio held for investment consists of the following
loan classes:
(in thousands)
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
March 31, 2023
Real estate loans
(audited)
Commercial real estate
Non-owner occupied
$
1,672,470
$
1,616,200
$
1,593,571
$
1,645,224
$
1,630,451
Multi-family residential
349,917
407,214
771,654
764,712
796,125
Land development and construction
loans
333,198
300,378
301,938
314,010
303,268
2,355,585
2,323,792
2,667,163
2,723,946
2,729,844
Single-family residential
1,490,711
1,466,608
1,371,194
1,285,857
1,189,045
Owner occupied
1,193,909
1,175,331
1,129,921
1,063,240
1,069,491
5,040,205
4,965,731
5,168,278
5,073,043
4,988,380
Commercial loans (1)
1,550,140
1,503,187
1,452,759
1,577,209
1,497,649
Loans to financial institutions and
acceptances
29,490
13,375
13,353
13,332
13,312
Consumer loans and overdrafts (2)
337,640
391,200
438,997
503,432
550,405
Total loans
$
6,957,475
$
6,873,493
$
7,073,387
$
7,167,016
$
7,049,746
__________________
(1) As of March 31, 2024, December 31, 2023, September 30, 2023,
June 30, 2023 and March 31, 2023, includes approximately $57.4
million, $56.5 milliion, $49.3 million, $47.7 million and $46.7
million, respectively, in commercial loans and leases originated
under a white-label equipment financing solution launched in the
second quarter of 2022.
(2) As of March 31, 2024, December 31, 2023, September 30, 2023,
June 30, 2023 and March 31, 2023 includes $163.3 million, $210.9
million, $254.7 million, $312.3 million and $372.2 million,
respectively, in consumer loans purchased under indirect lending
programs.
Loans by Type - Held For Sale
The loan portfolio held for sale consists of the following loan
classes:
(in thousands)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Loans held for
sale at the lower of fair value or cost
(audited)
Real estate loans
Commercial real estate
Non-owner occupied
$
—
$
—
$
43,256
$
—
$
—
Multi-family residential
—
309,612
—
—
—
Land development and construction
loans
—
55,607
—
—
—
Total loans held for sale at the lower of
fair value or cost (1)
—
365,219
43,256
—
—
Mortgage loans
held for sale at fair value
Land development and construction loans
(2)
26,058
12,778
6,931
3,726
15,527
Single-family residential (3)
22,850
13,422
19,022
46,216
49,762
Total mortgage loans held for sale at fair
value (4)
48,908
26,200
25,953
49,942
65,289
Total loans held for sale (5)
$
48,908
$
391,419
$
69,209
$
49,942
$
65,289
__________________
(1) In the fourth quarter of 2023, the Company transferred an
aggregate of $401 million in Houston-based CRE loans held for
investment to the loans held for sale category, and recognized a
valuation allowance of $35.5 million as a result of the fair value
adjustment of these loans. The Company subsequently sold these
loans in the first quarter of 2024 and there was no material impact
to the Company’s results of operations as a result of this
transaction. In the third quarter of 2023, the Company transferred
a New York-based CRE loan held for investment to the loans held for
sale category, and recognized a valuation allowance of $5.6 million
as a result of the fair value adjustment of this loan. In the
fourth quarter of 2023, the Company sold this loan and there was no
material impact to the Company’s results of operations as a result
of this transaction.
(2) In the second quarter of 2023, the Company transferred
approximately $13 million in land development and construction
loans held for sale to the loans held for investment category.
(3) In the fourth, third and second quarters of 2023, the
Company transferred approximately $17 million, $17 million and $28
million, respectively, in single-family residential loans held for
sale to the loans held for investment category. In the first
quarter of 2024, there were no significant transfers of
single-family residential loans from the loans held for sale to the
loans held for investment category.
(4) Loans held for sale in connection with Amerant Mortgage’s
ongoing business.
(5) 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, other real estate
owned, or OREO, and other repossessed assets at the dates
presented. Non-performing loans consist of (i) nonaccrual loans,
and (ii) accruing loans 90 days or more contractually past due as
to interest or principal.
(in thousands)
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
March 31, 2023
Non-Accrual Loans
(audited)
Real Estate Loans
Commercial real estate (CRE)
Non-owner occupied
$
—
$
—
$
—
$
1,696
$
—
Multi-family residential
—
8
23,344
24,306
—
—
8
23,344
26,002
—
Single-family residential
4,400
2,459
2,533
1,681
1,367
Owner occupied
1,958
3,822
2,100
6,890
7,118
6,358
6,289
27,977
34,573
8,485
Commercial loans
21,833
21,949
4,713
12,241
13,643
Consumer loans and overdrafts
32
38
1
1
1
Total Non-Accrual Loans (1)
$
28,223
$
28,276
$
32,691
$
46,815
$
22,129
Past Due Accruing Loans(2)
Real Estate Loans
Commercial real estate (CRE)
Single-family residential
1,149
5,218
—
302
—
Commercial
918
857
504
—
—
Consumer loans and overdrafts
9
49
—
78
53
Total Past Due Accruing Loans
$
2,076
$
6,124
$
504
$
380
$
53
Total Non-Performing Loans
30,299
34,400
33,195
47,195
22,182
Other Real Estate Owned
20,181
20,181
20,181
20,181
26,534
Total Non-Performing Assets
$
50,480
$
54,581
$
53,376
$
67,376
$
48,716
__________________
(1) See 2023 Form 10-K for more information about the activity
of non-accrual loans in 2023.
(2) Loans past due 90 days or more but still accruing.
Loans by Credit Quality Indicators
This table shows the Company’s loans by credit quality
indicators. The Company has not purchased credit-impaired
loans.
March 31, 2024
December 31, 2023
March 31, 2023
(in thousands)
Special Mention
Substandard
Doubtful
Total (1)
Special Mention
Substandard
Doubtful
Total (1)
Special Mention
Substandard
Doubtful
Total (1)
Real Estate Loans
Commercial Real Estate (CRE)
Non-owner occupied
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
8,335
$
—
$
—
$
8,335
Multi-family residential
—
6
—
6
—
8
—
8
24,348
—
—
24,348
—
6
—
6
—
8
—
8
32,683
—
—
32,683
Single-family residential
—
3,715
—
3,715
—
2,800
—
2,800
—
1,514
—
1,514
Owner occupied
40,666
2,023
—
42,689
15,723
3,890
—
19,613
—
7,202
—
7,202
40,666
5,744
—
46,410
15,723
6,698
—
22,421
32,683
8,716
—
41,399
Commercial loans
63,172
22,800
—
85,972
30,261
22,971
—
53,232
3,240
14,891
3
18,134
Consumer loans and overdrafts
—
36
—
36
—
41
—
41
—
1
—
1
Totals
$
103,838
$
28,580
$
—
$
132,418
$
45,984
$
29,710
$
—
$
75,694
$
35,923
$
23,608
$
3
$
59,534
__________
(1) There were no loans categorized as “loss” as of the dates
presented.
Exhibit 8 - Deposits by Country of
Domicile
This table shows the Company’s deposits by country of domicile
of the depositor as of the dates presented.
(in thousands)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
(audited)
Domestic
$
5,288,702
$
5,430,059
$
5,067,937
$
5,113,604
$
4,891,873
Foreign:
Venezuela
1,988,470
1,870,979
1,892,453
1,912,994
1,897,199
Others
601,071
593,825
586,522
552,973
497,654
Total foreign
2,589,541
2,464,804
2,478,975
2,465,967
2,394,853
Total deposits
$
7,878,243
$
7,894,863
$
7,546,912
$
7,579,571
$
7,286,726
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424629768/en/
Investors Laura Rossi InvestorRelations@amerantbank.com (305)
460-8728 Media Alexis Dominguez MediaRelations@amerantbank.com
(305) 441-5541
Amerant Bancorp (NYSE:AMTB)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Amerant Bancorp (NYSE:AMTB)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024