Amerant Bancorp Inc. (NYSE: AMTB) (the “Company” or “Amerant”)
today reported a net income attributable to the Company of $16.9
million in the fourth quarter of 2024, or $0.40 per diluted share,
compared to a net loss of $48.2 million, or $1.43 loss per diluted
share, in the third quarter of 2024. Net loss attributable to the
Company was $15.8 million for the full-year 2024, or $0.44 per
diluted share, compared to net income of $32.5 million, or $0.96
per diluted share, for the full-year 2023.
“Our fourth quarter results show significant improvement in a
number of areas,” stated Jerry Plush, Chairman and CEO. “Net
interest income increased over 8% while provision for credit losses
declined 48%, quarter over quarter. While our asset size declined
primarily from the sale of our Houston Franchise in the fourth
quarter, our loan pipeline is robust heading into 2025, and we
expect to be back well over $10 billion in assets in the first
quarter of 2025. This past year we focused on completing our
transformation toward becoming the bank of choice in Florida – in
2025, our focus now is executing on our growth plan.”
Fourth Quarter Financial Highlights and Quarter-over-Quarter
Changes:
- Total assets were $9.9 billion, down $455.4 million, or 4.40%,
compared to $10.4 billion as of 3Q24.
- Total gross loans were $7.27 billion, a decrease of $294.7
million, or 3.90%, compared to $7.56 billion in 3Q24.
- Cash and cash equivalents were $590.4 million, down $81.5
million, or 12.13%, compared to $671.8 million as of 3Q24.
- Total deposits were $7.9 billion, down $256.9 million, or
3.17%, compared to $8.1 billion in 3Q24.
- Total advances from Federal Home Loan Bank (“FHLB”) were $745.0
million, down $170.0 million, or 18.6%, compared to $915.0 million
as of 3Q24. The Bank had an aggregate borrowing capacity of $2.5
billion from the FED or FHLB as of December 31, 2024.
- Average yield on loans was 7.00%, down compared to 7.08% in
3Q24.
- Total non-performing assets were $122.2 million, down $7.3
million, or 5.6%, compared to $129.4 million as of 3Q24.
- Classified loans were $125.7 million, up by $11.5 million
compared to $114.2 million as of 3Q24, while non-performing loans
declined by $10.8 million to $104.1 million as of 4Q24 from $114.9
million as of 3Q24. Special mention loans also declined by $71.0
million to $5.4 million as of 4Q24 from $76.4 million as of
3Q24.
- The allowance for credit losses ("ACL") was $85.0 million, an
increase of $5.1 million, or 6.3%, compared to $79.9 million as of
3Q24.
- Core deposits, which consist of total deposits excluding all
time deposits, were $5.6 billion, down $87.7 million, or 1.5%,
compared to $5.7 billion as of 3Q24.
- Average cost of total deposits was 2.77% compared to 2.99% in
3Q24.
- Loan to deposit ratio was 92.5% compared to 93.2% in 3Q24.
- Assets Under Management and custody (“AUM”) totaled $2.9
billion as of 4Q24, an increase of $339.5 million, or 13.3%,
compared to $2.6 billion as of 3Q24.
- Pre-provision net revenue (“PPNR”)(1) was $27.9 million in
4Q24, an increase of $70.8 million, or 165.1%, compared to negative
$42.9 million in 3Q24. Excluding non-routine items, PPNR(2) in 4Q24
was $37.2 million, up $6.0 million, or 19.0%, compared to $31.3
million in 3Q24.
- Net Interest Margin (“NIM”) was 3.75%, up compared to 3.49% in
3Q24.
- Net Interest Income (“NII”) was $87.6 million, up $6.6 million,
or 8.2%, compared to $81.0 million in 3Q24.
- Provision for credit losses was $9.9 million, down $9.1
million, or 47.8%, compared to $19.0 million in 3Q24.
- Non-interest income was $23.7 million, an increase of $71.4
million, or 149.7%, compared to negative $47.7 million in 3Q24.
Excluding non-routine items, non-interest income(2) was $17.8
million, a decrease of $3.0 million, or 14.3%, compared to $20.8
million in 3Q24.
- Non-interest expense was $83.4 million, up $7.2 million, or
9.4%, compared to $76.2 million in 3Q24. Excluding non-routine
items, non-interest expense(2) was $68.2 million, a decrease of
$2.3 million, or 3.3%, compared to $70.5 million in 3Q24.
- The efficiency ratio was 74.91% in 4Q24, down compared to
228.74% in 3Q24. Excluding non-routine items, efficiency ratio(2)
was 64.71%, down compared to 69.29% in 3Q24.
- Return on average assets (“ROA”) was 0.67% in 4Q24 compared to
negative 1.92% in 3Q24. Excluding non-routine items, ROA(2) was
0.83% compared to 0.37% in 3Q24.
- Return on average equity (“ROE”) was 7.38% in 4Q24 compared to
negative 24.98% in 3Q24. Excluding non-routine items, ROE(2) was
9.25% compared to 4.80% in 3Q24.
- The Company’s Board of Directors declared a cash dividend of
$0.09 per share of common stock on January 22, 2025. The dividend
is payable on February 28, 2025, to shareholders of record on
February 14, 2025.
Full-year Financial Highlights and Year-on-Year
Changes:
- Total assets were $9.9 billion, up $0.2 billion, or 1.9%,
compared to $9.7 billion as of 4Q23.
- Total gross loans were $7.27 billion, an increase of $2.4
million, or 0.03%, compared to $7.26 billion in 4Q23.
- Cash and cash equivalents were $590.4 million, up $268.5
million, or 83%, compared to $321.9 million as of 4Q23.
- Total deposits were $7.9 billion, down $40.8 million, or 0.5%,
compared to $7.9 billion in 4Q23.
- Total advances from Federal Home Loan Bank (“FHLB”) were $745.0
million, up $100.0 million, or 15.5%, compared to $645.0 million as
of 4Q23.
- Average yield on loans was 7.00%, down compared to 7.09% in
4Q23. Average yield on loans for the full-year 2024 was 7.06%, up
compared to 6.78% for the full-year 2023.
- Total non-performing assets were $122.2 million, up $67.6
million or 123.8%, compared to $54.6 million to 4Q23.
- Classified loans were $125.7 million, up by $96.0 million
compared to $29.7 million as of 4Q23 and non-performing loans
increased by $69.7 million to $104.1 million as of 4Q24 from $34.4
million as of 4Q23, while special mention loans declined by $40.6
million to $5.4 million as of 4Q24 from $46.0 million as of
4Q23.
- The allowance for credit losses ("ACL") was $85.0 million, a
decrease of $10.5 million, or 11.0%, compared to $95.5 million in
4Q23.
- Core deposits, which consist of total deposits excluding all
time deposits, were $5.62 billion, up $21.9 million, or 0.4%,
compared to $5.60 billion as of 4Q23.
- Average cost of total deposits was 2.77% compared to 2.88% in
4Q23. Average cost of total deposits for the full-year 2024 was
2.94% compared to 2.47% for the full-year 2023.
- Loan to deposit ratio was 92.53% compared to 92.02% in
4Q23.
- Assets Under Management and custody (“AUM”) totaled $2.9
billion as of 4Q24, an increase of $600.9 million, or 26.3%,
compared to $2.3 billion in 4Q23.
- Pre-provision net revenue (“PPNR”)(1) was $27.9 million in
4Q24, an increase of $35.5 million, or 467.8%, compared to negative
$7.6 million in 4Q23. PPNR was $36.4 million for the full-year
2024, a decrease of $67.9 million, or 65.1%, compared to $104.3
million for the full-year 2023. Excluding non-routine items,
PPNR(2) for the full-year 2024 was $125.6 million, down $16.4
million, or 11.6%, compared to $142.0 million for the full-year
2023.
- Net Interest Margin (“NIM”) was 3.75%, up compared to 3.72% in
4Q23. NIM was 3.58% for the full-year 2024, down compared to 3.76%
for the full-year 2023.
- Net Interest Income (“NII”) was $87.6 million, up $6.0 million,
or 7.3%, compared to $81.7 million in 4Q23. NII was $326.0 million
for the full-year 2024, down $0.5 million, or 0.16%, compared to
$326.5 million for the full-year 2023.
- Provision for credit losses was $9.9 million, down compared to
$12.5 million in 4Q23. Provision for credit losses was $60.5
million for the full-year 2024, compared to $61.3 million in the
full-year 2023.
- Non-interest income was $23.7 million, an increase of $4.1
million, or 20.76%, compared to $19.6 million in 4Q23. Non-interest
income was $9.9 million for the full-year 2024, a decrease of $77.6
million, or 88.7%, compared to $87.5 million for the full-year
2023. Excluding non-routine items, non-interest income(2) in 4Q24
was $17.8 million, an increase of $3.9 million, or 28.0%, compared
to $13.9 million in 4Q23. For the full-year 2024, non-interest
income(2) was $72.7 million, an increase of $13.7 million, or
23.2%, compared to $59.0 million for the full-year 2023.
- Non-interest expense was $83.4 million, down $26.3 million, or
24.0%, compared to $109.7 million in 4Q23. Non-interest expense was
$299.5 million for the full-year 2024, down $11.9 million or 3.8%,
compared to $311.4 million for the full-year 2023. Excluding
non-routine items, non-interest expense(2) in 4Q24 was $68.2
million, an increase of $1.6 million, or 2.4%, compared to $66.6
million in 4Q23, while for the full-year 2024, non-interest
expense(2) was $273.1 million, an increase of $27.9 million, or
11.38%, compared to $245.2 million for the full-year 2023.
- The efficiency ratio was 74.91% in 4Q24, down compared to
108.30% in 4Q23. The efficiency ratio was 89.17% for the full-year
2024 compared to 75.21% for the full-year 2023. Excluding
non-routine items, efficiency ratio(2) in 4Q24 was 64.71%, down
compared to 69.67% in 4Q23, while for the full-year 2024, the
efficiency ratio(2) was 68.51%, up compared to 63.61% for the
full-year 2023.
- Return on average assets (“ROA”) was 0.67% in 4Q24 compared to
negative 0.71% in 4Q23. ROA was negative 0.16% for the full-year
2024 compared to 0.34% for the full-year 2023. Excluding
non-routine items, ROA(2) in 4Q24 was 0.83% compared to 0.64% in
4Q23, while for the full-year 2024, ROA(2) was 0.51% compared to
0.69% for the full-year 2023.
- Return on average equity (“ROE”) was 7.38% in 4Q24 compared to
negative 9.22% in 4Q23. ROE was negative 1.99% for the full-year
2024 compared to 4.39% for the full-year 2023. Excluding
non-routine items, ROE(2) was 9.25% in 4Q24 compared to 8.23% in
4Q23, while for the full-year 2024, ROE(2) was 6.37% compared to
8.79% for the full-year 2023.
Additional details on fourth quarter and full-year 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.
2 Represents core PPNR, core noninterest income, core
noninterest expense, core efficiency ratio, core ROA or Core ROE,
as applicable, which are Non-GAAP measures. See “Non-GAAP Financial
Measures” for more information and Exhibit 2 for a reconciliation
to GAAP measures.
Fourth Quarter and Full Year 2024 Earnings Conference
Call
The Company will hold an earnings conference call on Thursday,
January 23, 2025 at 9:00 a.m. (Eastern Time) to discuss its fourth
quarter and full-year 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., and Amerant
Mortgage, LLC. The Company provides individuals and businesses with
deposit, credit and wealth management services. The Bank, which has
operated for over 40 years, is headquartered in Florida and
operates 19 banking centers – 18 in South Florida and 1 in Tampa,
Florida. 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. Examples of forward-looking statements include
but are not limited to: our future operating or financial
performance, including revenues, expenses, expense savings, income
or loss and earnings or loss per share, and other financial items;
statements regarding expectations, plans or objectives for future
operations, products or services, and our expectations on our
securities repositioning and loan recoveries, reaching effective
resolutions on problem loans, or significantly reducing special
mention and/or non-performing loans. All statements other than
statements of historical fact are statements that could be
forward-looking statements. You can identify these forward-looking
statements through our use of words such as “may,” “will,”
“anticipate,” “assume,” “should,” “indicate,” “would,” “believe,”
“contemplate,” “expect,” “estimate,” “continue,” “plan,” “point
to,” “project,” “could,” “intend,” “target,” “goals,” “outlooks,”
“modeled,” “dedicated,” “create,” and other similar words and
expressions of the future.
Forward-looking statements, including those relating to our
beliefs, plans, objectives, goals, expectations, anticipations,
estimates and intentions, involve known and unknown risks,
uncertainties and other factors, which may be beyond our control,
and which may cause the Company’s actual results, performance,
achievements, or financial condition to be materially different
from future results, performance, achievements, or financial
condition expressed or implied by such forward-looking statements.
You should not rely on any forward-looking statements as
predictions of future events. You should not expect us to update
any forward-looking statements, except as required by law. All
written or oral forward-looking statements attributable to us are
expressly qualified in their entirety by this cautionary notice,
together with those risks and uncertainties described in “Risk
factors” in our annual report on Form 10-K for the fiscal year
ended December 31, 2023 filed on March 7, 2024 (the “Form 10-K”),
our quarterly report on Form 10-Q for the quarter ended March 31,
2024 filed on May 3, 2024, our quarterly report on Form 10-Q for
the fiscal quarter ended September 30, 2024 filed on November 4,
2024, 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 month periods ended September 30, 2024, June
30, 2024, March 31, 2024, and the three and twelve month periods
ended December 31, 2024, may not reflect our results of operations
for our fiscal year ended, 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 net unrealized
accumulated losses on debt securities held to maturity”, and
“tangible stockholders' equity (book value) per common share,
adjusted for net unrealized accumulated 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
(including the investment portfolio repositioning initiated in the
third quarter of 2024) and other repossessed assets, the sale of
our Houston franchise, the valuation of securities, derivatives,
loans held for sale and other real estate owned, impairment of
investments, the early repayment of FHLB advances, 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 unaudited and audited consolidated financial
statements.
(in thousands)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Consolidated Balance Sheets
(audited)
Total assets
$
9,897,691
$
10,353,127
$
9,747,738
$
9,817,772
$
9,716,327
Total investments
1,497,925
1,542,544
1,547,864
1,578,568
1,496,975
Total gross loans (1)(2)
7,267,279
7,561,963
7,322,911
7,006,383
7,264,912
Allowance for credit losses
84,963
79,890
94,400
96,050
95,504
Total deposits
7,854,069
8,110,944
7,816,011
7,878,243
7,894,863
Core deposits (1)
5,619,624
5,707,366
5,505,349
5,633,165
5,597,766
Advances from the Federal Home Loan
Bank
745,000
915,000
765,000
715,000
645,000
Senior notes
59,843
59,764
59,685
59,605
59,526
Subordinated notes
29,624
29,582
29,539
29,497
29,454
Junior subordinated debentures
64,178
64,178
64,178
64,178
64,178
Stockholders' equity (3)(4)(5)
890,467
902,888
734,342
738,085
736,068
Assets under management and custody
(1)
2,890,048
2,550,541
2,451,854
2,357,621
2,289,135
Three Months Ended
Years Ended December
31,
(in thousands, except percentages, share
data and per share amounts)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
2024
2023
Consolidated Results of
Operations
(audited)
Net interest income
$
87,635
$
80,999
$
79,355
$
77,968
$
81,677
$
325,957
$
326,464
Provision for credit losses (6)
9,910
19,000
19,150
12,400
12,500
60,460
61,277
Noninterest income
23,684
(47,683
)
19,420
14,488
19,613
9,909
87,496
Noninterest expense
83,386
76,208
73,302
66,594
109,702
299,490
311,355
Net income (loss) attributable to Amerant
Bancorp Inc. (7)
16,881
(48,164
)
4,963
10,568
(17,123
)
(15,752
)
32,490
Effective income tax rate
6.34
%
22.18
%
21.51
%
21.50
%
14.21
%
34.60
%
25.50
%
Common Share Data
Stockholders' book value per common
share
$
21.14
$
21.44
$
21.88
$
21.90
$
21.90
$
21.14
$
21.90
Tangible stockholders' equity (book value)
per common share (8)
$
20.56
$
20.87
$
21.15
$
21.16
$
21.16
$
20.56
$
21.16
Tangible stockholders’ equity (book value)
per common share, adjusted for net unrealized accumulated losses on
debt securities held to maturity (8)
$
20.56
$
20.87
$
20.54
$
20.60
$
20.68
$
20.56
$
20.68
Basic earnings (loss) per common share
$
0.40
$
(1.43
)
$
0.15
$
0.32
$
(0.51
)
$
(0.44
)
$
0.97
Diluted earnings (loss) per common share
(9)
$
0.40
$
(1.43
)
$
0.15
$
0.31
$
(0.51
)
$
(0.44
)
$
0.96
Basic weighted average shares
outstanding
42,069,098
33,784,999
33,581,604
33,538,069
33,432,871
35,755,375
33,511,321
Diluted weighted average shares
outstanding (9)
42,273,778
33,784,999
33,780,666
33,821,562
33,432,871
35,755,375
33,675,388
Cash dividend declared per common share
(4)
$
0.09
$
0.09
$
0.09
$
0.09
$
0.09
$
0.36
$
0.36
Three Months Ended
Years Ended December
31,
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
2024
2023
Other Financial and Operating Data
(12)
(audited)
Profitability Indicators (%)
Net interest income / Average total
interest earning assets (NIM) (1)
3.75
%
3.49
%
3.56
%
3.51
%
3.72
%
3.58
%
3.76
%
Net income (loss) / Average total assets
(ROA) (1)
0.67
%
(1.92
)%
0.21
%
0.44
%
(0.71
)%
(0.16
)%
0.34
%
Net income(loss) / Average stockholders'
equity (ROE) (1)
7.38
%
(24.98
)%
2.68
%
5.69
%
(9.22
)%
(1.99
)%
4.39
%
Noninterest income / Total revenue (1)
21.28
%
(143.12
)%
19.66
%
15.67
%
19.36
%
2.95
%
21.14
%
Capital Indicators (%)
Total capital ratio (1)
13.43
%
12.72
%
11.88
%
12.49
%
12.13
%
13.43
%
12.13
%
Tier 1 capital ratio (1)
11.95
%
11.36
%
10.34
%
10.87
%
10.55
%
11.95
%
10.55
%
Tier 1 leverage ratio (1)
9.66
%
9.56
%
8.74
%
8.73
%
8.84
%
9.66
%
8.84
%
Common equity tier 1 capital ratio (CET1)
(1)
11.21
%
10.65
%
9.60
%
10.10
%
9.79
%
11.21
%
9.79
%
Tangible common equity ratio (1)(8)
8.77
%
8.51
%
7.30
%
7.28
%
7.34
%
8.77
%
7.34
%
Tangible common equity ratio, adjusted for
net unrealized accumulated losses on debt securities held to
maturity (1)(8)
8.77
%
8.51
%
7.11
%
7.10
%
7.18
%
8.77
%
7.18
%
Liquidity Ratios (%)
Loans to Deposits (1)
92.53
%
93.23
%
93.69
%
88.93
%
92.02
%
92.53
%
92.02
%
Asset Quality Indicators (%)
Non-performing assets / Total assets
(1)
1.23
%
1.25
%
1.24
%
0.51
%
0.56
%
1.23
%
0.56
%
Non-performing loans / Total loans (1)
1.43
%
1.52
%
1.38
%
0.43
%
0.47
%
1.43
%
0.47
%
Allowance for credit losses / Total
non-performing loans
81.62
%
69.51
%
93.51
%
317.01
%
278.02
%
81.62
%
278.02
%
Allowance for credit losses / Total loans
held for investment
1.18
%
1.15
%
1.41
%
1.38
%
1.39
%
1.18
%
1.39
%
Net charge-offs / Average total loans held
for investment (1)(10)
0.26
%
1.90
%
1.13
%
0.69
%
0.85
%
0.99
%
0.69
%
Efficiency Indicators (% except
FTE)
Noninterest expense / Average total
assets
3.29
%
3.04
%
3.03
%
2.75
%
4.57
%
3.03
%
3.29
%
Salaries and employee benefits / Average
total assets
1.39
%
1.39
%
1.40
%
1.36
%
1.38
%
1.39
%
1.41
%
Other operating expenses/ Average total
assets (1)
1.90
%
1.64
%
1.63
%
1.39
%
3.20
%
1.64
%
1.88
%
Efficiency ratio (1)
74.91
%
228.74
%
74.21
%
72.03
%
108.30
%
89.17
%
75.21
%
Full-Time-Equivalent Employees (FTEs)
(11)
698
735
720
696
682
698
682
Three Months Ended
Years Ended December
31,
(in thousands, except percentages and per
share amounts)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
2024
2023
Core Selected Consolidated Results of
Operations and Other Data (8)
(audited)
Pre-provision net revenue (PPNR)
$
27,933
$
(42,892
)
$
25,473
$
25,862
$
(7,595
)
$
36,376
$
104,306
Core pre-provision net revenue (Core
PPNR)
$
37,217
$
31,264
$
31,007
$
26,068
$
29,811
$
125,556
$
141,990
Core net income
$
21,160
$
9,249
$
9,307
$
10,730
$
15,272
$
50,446
$
65,104
Core basic earnings per common share
0.50
0.27
0.28
0.32
0.46
1.41
1.94
Core earnings per diluted common share
(9)
0.50
0.27
0.28
0.32
0.46
1.41
1.93
Core net income / Average total assets
(Core ROA) (1)
0.83
%
0.37
%
0.38
%
0.44
%
0.64
%
0.51
%
0.69
%
Core net income / Average stockholders'
equity (Core ROE)(1)
9.25
%
4.80
%
5.03
%
5.78
%
8.23
%
6.37
%
8.79
%
Core efficiency ratio
64.71
%
69.29
%
68.60
%
71.87
%
69.67
%
68.51
%
63.61
%
__________________
(1)
See Glossary of Terms and Definitions for
definitions of financial terms.
(2)
All periods include mortgage loans held
for sale carried at fair value, while September 30, 2024, June 30,
2024 and December 31 2023 also include loans held for sale carried
at the lower of estimated cost or fair value. As of December 31,
2024, there were no loans carried at the lower cost or fair
value.
(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
fourth quarter of 2024. For repurchases during all other periods,
see September 30, 2024 Form 10-Q, June 30, 2024 Form 10-Q, March
31, 2024 Form 10-Q and 2023 Form 10-K.
(4)
For the three months ended December 31,
2024, 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 $3.8 million in connection with these dividends. For all
other periods shown, the Company paid $3.0 million per quarter in
connection with these dividends. The dividend declared in the
fourth quarter of 2024 was paid on November 29, 2024 to
shareholders of record at the close of business on November 14,
2024. See September 30, 2024 Form 10-Q, June 30, 2024 Form 10-Q,
and 2023 Form 10-K for more information on dividend payments during
the previous quarters.
(5)
On September 27, 2024, the Company
completed a public offering of 8,684,210 shares of its Class A
common stock, at a price to the public of $19.00 per share.
(6)
In the fourth, third, second and first
quarter of 2024 and in the fourth quarter of 2023, includes $9.7
million, $17.9 million, $17.7 million, $12.4 million and $12.0
million of provision for credit losses on loans. Provision for
unfunded commitments (contingencies) in the fourth, third and
second quarter of 2024 and in the fourth quarter of 2023, were $0.2
million, $1.1 million, $1.5 million and $0.5 million, respectively,
while there was none in the first quarter of 2024. The Provision
for Loan Losses was $60.5 million and $61.3 million for the years
ended December 31, 2024 and 2023, respectively. These amounts
include the Provision for Losses on Loans of $57.7 million, $60.1
million in the years ended December 31, 2024 and 2023,
respectively, and the Provision for unfunded commitments
(contingencies) of $2.8 million, $1.2 million as of December 31,
2024 and 2023, respectively.
(7)
In the three months ended December 31,
2023, net income excludes losses of $0.8 million, 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)
See 2023 Form 10-K for more information on
potential dilutive instruments and its impact on diluted earnings
per share computation.
(10)
See September 30, 2024 Form 10-Q, June 30,
2024 Form 10-Q, March 31, 2024 Form 10-Q and 2023 Form 10-K, for
more details on charge-offs for all previous periods.
(11)
As of December 31, 2024, September 30,
2024, June 30, 2024, March 31, 2034 and December 31, 2023, includes
80, 81, 83, 65 and 67 FTEs for Amerant Mortgage, respectively.
(12)
Operating data for the periods presented
have been annualized.
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, enhancement of the bank owned life
insurance 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,
Years Ended December
31,
(in thousands)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
2024
2023
(audited)
Net income (loss) attributable to Amerant
Bancorp Inc.
$
16,881
$
(48,164
)
$
4,963
$
10,568
$
(17,123
)
$
(15,752
)
$
32,490
Plus: provision for credit losses (1)
9,910
19,000
19,150
12,400
12,500
60,460
61,277
Plus: provision for income tax (benefit)
expense
1,142
(13,728
)
1,360
2,894
(2,972
)
(8,332
)
10,539
Pre-provision net revenue
(PPNR)
27,933
(42,892
)
25,473
25,862
(7,595
)
36,376
104,306
Plus: non-routine noninterest expense
items
15,148
5,672
5,562
—
43,094
26,382
66,152
(Less) plus: non-routine noninterest
income items
(5,864
)
68,484
(28
)
206
(5,688
)
62,798
(28,468
)
Core pre-provision net revenue (Core
PPNR)
$
37,217
$
31,264
$
31,007
$
26,068
$
29,811
$
125,556
$
141,990
Total noninterest income
$
23,684
$
(47,683
)
$
19,420
$
14,488
$
19,613
$
9,909
$
87,496
Less: Non-routine noninterest income
items:
Derivative (losses) gains, net
—
—
(44
)
(152
)
(151
)
(196
)
28
Securities (losses) gains, net (2)
(8,200
)
(68,484
)
(117
)
(54
)
33
(76,855
)
(10,989
)
Bank owned life insurance charge (3)
—
—
—
—
(655
)
—
(655
)
Gain on sale of Houston Franchise (11)
12,636
—
—
—
—
12,636
—
Gains on early extinguishment of FHLB
advances, net
1,428
—
189
—
6,461
1,617
40,084
Total non-routine noninterest income
items
$
5,864
$
(68,484
)
$
28
$
(206
)
$
5,688
$
(62,798
)
$
28,468
Core noninterest income
$
17,820
$
20,801
$
19,392
$
14,694
$
13,925
$
72,707
$
59,028
Total noninterest expenses
$
83,386
$
76,208
$
73,302
$
66,594
$
109,702
$
299,490
$
311,355
Less: non-routine noninterest expense
items
Restructuring costs (4)
Staff reduction costs (5)
—
—
—
—
1,120
—
4,006
Contract termination costs (6)
—
—
—
—
—
—
1,550
Consulting and other professional fees and
software expenses (7)
—
—
—
—
1,629
—
6,379
Disposition of fixed assets (8)
—
—
—
—
—
—
1,419
Branch closure and related charges (9)
—
—
—
—
—
—
2,279
Total restructuring costs
$
—
$
—
$
—
$
—
$
2,749
$
—
$
15,633
Other non-routine noninterest expense
items:
Losses on loans held for sale carried at
the lower cost or fair value (10)(11)
12,642
—
1,258
—
37,495
13,900
43,057
Other real estate owned valuation
expense(12)
—
5,672
—
—
—
5,672
2,649
Goodwill and intangible assets impairment
(11)
—
—
300
—
1,713
300
1,713
Fixed assets impairment (11)(13)
—
—
3,443
—
—
3,443
—
Legal, broker fees, and other costs
(11)
2,506
—
561
—
—
3,067
—
Bank owned life insurance enhancement
costs (3)
—
—
—
—
1,137
—
1,137
Impairment charge on investment carried at
cost
—
—
—
—
—
—
1,963
Total non-routine noninterest expense
items
$
15,148
$
5,672
$
5,562
$
—
$
43,094
$
26,382
$
66,152
Core noninterest expenses
$
68,238
$
70,536
$
67,740
$
66,594
$
66,608
$
273,108
$
245,203
(in thousands, except percentages and per
share data)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
2024
2023
(audited)
Net income (loss) attributable to Amerant
Bancorp Inc.
$
16,881
$
(48,164
)
$
4,963
$
10,568
$
(17,123
)
$
(15,752
)
$
32,490
Plus after-tax non-routine items in
noninterest expense:
Non-routine items in noninterest expense
before income tax effect
15,148
5,672
5,562
—
43,094
26,382
66,152
Income tax effect (14)
(3,409
)
(1,332
)
(1,196
)
—
(8,887
)
(5,937
)
(13,892
)
Total after-tax non-routine items in
noninterest expense
11,739
4,340
4,366
—
34,207
20,445
52,260
(Less) plus: before-tax non-routine items
in noninterest income:
Non-routine items in noninterest income
before income tax effect
(5,864
)
68,484
(28
)
206
(5,688
)
62,798
(28,468
)
Income tax effect (14)
(1,596
)
(15,411
)
6
(44
)
1,032
(17,045
)
5,978
Total after-tax non-routine items in
noninterest income
(7,460
)
53,073
(22
)
162
(4,656
)
45,753
(22,490
)
BOLI enhancement tax impact (3)
—
—
—
—
2,844
—
2,844
Core net income
$
21,160
$
9,249
$
9,307
$
10,730
$
15,272
$
50,446
$
65,104
Basic earnings (loss) per share
$
0.40
$
(1.43
)
$
0.15
$
0.32
$
(0.51
)
$
(0.44
)
$
0.97
Plus: after tax impact of non-routine
items in noninterest expense and BOLI tax impact (15)
0.28
0.13
0.13
—
1.11
0.57
1.64
(Less) plus: after tax impact of
non-routine items in noninterest income
(0.18
)
1.57
—
—
(0.14
)
1.28
(0.67
)
Total core basic earnings per common
share
$
0.50
$
0.27
$
0.28
$
0.32
$
0.46
$
1.41
$
1.94
Diluted earnings (loss) per share (16)
$
0.40
$
(1.43
)
$
0.15
$
0.31
$
(0.51
)
$
(0.44
)
$
0.96
Plus: after tax impact of non-routine
items in noninterest expense and BOLI tax impact (15)
0.28
0.13
0.13
—
1.11
0.57
1.63
(Less) plus: after tax impact of
non-routine items in noninterest income
(0.18
)
1.57
—
0.01
(0.14
)
1.28
(0.66
)
Total core diluted earnings per common
share
$
0.50
$
0.27
$
0.28
$
0.32
$
0.46
$
1.41
$
1.93
Net income (loss) / Average total assets
(ROA)
0.67
%
(1.92
)%
0.21
%
0.44
%
(0.71
)%
(0.16
)%
0.34
%
Plus: after tax impact of non-routine
items in noninterest expense and BOLI tax impact (15)
0.46
%
0.18
%
0.17
%
—
%
1.55
%
0.21
%
0.58
%
(Less) plus: after tax impact of
non-routine items in noninterest income
(0.30
)%
2.11
%
—
%
—
%
(0.20
)%
0.46
%
(0.23
)%
Core net income / Average total assets
(Core ROA)
0.83
%
0.37
%
0.38
%
0.44
%
0.64
%
0.51
%
0.69
%
Net income (loss) / Average stockholders'
equity (ROE)
7.38
%
(24.98
)%
2.68
%
5.69
%
(9.22
)%
(1.99
)%
4.39
%
Plus: after tax impact of non-routine
items in noninterest expense and BOLI tax impact (15)
5.13
%
2.25
%
2.36
%
—
%
19.96
%
2.58
%
7.44
%
(Less) plus: after tax impact of
non-routine items in noninterest income
(3.26
)%
27.53
%
(0.01
)%
0.09
%
(2.51
)%
5.78
%
(3.04
)%
Core net income / Average stockholders'
equity (Core ROE)
9.25
%
4.80
%
5.03
%
5.78
%
8.23
%
6.37
%
8.79
%
Efficiency ratio
74.91
%
228.74
%
74.21
%
72.03
%
108.30
%
89.17
%
75.21
%
(Less): impact of non-routine items in
noninterest expense and
noninterest income
(10.20
)%
(159.45
)%
(5.61
)%
(0.16
)%
(38.63
)%
(20.66
)%
(11.60
)%
Core efficiency ratio
64.71
%
69.29
%
68.60
%
71.87
%
69.67
%
68.51
%
63.61
%
(in thousands, except percentages, share
data and per share data)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
2024
2023
(audited)
Stockholders' equity
$
890,467
$
902,888
$
734,342
$
738,085
$
736,068
$
890,467
$
736,068
Less: goodwill and other intangibles
(17)
(24,314
)
(24,366
)
(24,581
)
(24,935
)
(25,029
)
(24,314
)
(25,029
)
Tangible common stockholders' equity
$
866,153
$
878,522
$
709,761
$
713,150
$
711,039
$
866,153
$
711,039
Total assets
9,897,691
10,353,127
9,747,738
9,817,772
9,716,327
9,897,691
9,716,327
Less: goodwill and other intangibles
(17)
(24,314
)
(24,366
)
(24,581
)
(24,935
)
(25,029
)
(24,314
)
(25,029
)
Tangible assets
$
9,873,377
$
10,328,761
$
9,723,157
$
9,792,837
$
9,691,298
$
9,873,377
$
9,691,298
Common shares outstanding
42,127,316
42,103,623
33,562,756
33,709,395
33,603,242
42,127,316
33,603,242
Tangible common equity ratio
8.77
%
8.51
%
7.30
%
7.28
%
7.34
%
8.77
%
7.34
%
Stockholders' book value per common
share
$
21.14
$
21.44
$
21.88
$
21.90
$
21.90
$
21.14
$
21.90
Tangible stockholders' book value per
common share
$
20.56
$
20.87
$
21.15
$
21.16
$
21.16
$
20.56
$
21.16
Tangible common stockholders' equity
$
866,153
$
878,522
$
709,761
$
713,150
$
711,039
$
866,153
$
711,039
Less: Net unrealized accumulated losses on
debt securities held to maturity, net of tax (18)
—
—
(20,304
)
(18,729
)
(16,197
)
—
(16,197
)
Tangible common stockholders' equity,
adjusted for net unrealized accumulated losses on debt securities
held to maturity
$
866,153
$
878,522
$
689,457
$
694,421
$
694,842
$
866,153
$
694,842
Tangible assets
$
9,873,377
$
10,328,761
$
9,723,157
$
9,792,837
$
9,691,298
$
9,873,377
$
9,691,298
Less: Net unrealized accumulated losses on
debt securities held to maturity, net of tax (18)
—
—
(20,304
)
(18,729
)
(16,197
)
—
(16,197
)
Tangible assets, adjusted for net
unrealized accumulated losses on debt securities held to
maturity
$
9,873,377
$
10,328,761
$
9,702,853
$
9,774,108
$
9,675,101
$
9,873,377
$
9,675,101
Common shares outstanding
42,127,316
42,103,623
33,562,756,000
33,709,395,000
33,603,242
42,127,316
33,603,242
Tangible common equity ratio, adjusted
for net unrealized accumulated losses on debt securities held to
maturity
8.77
%
8.51
%
7.11
%
7.10
%
7.18
%
8.77
%
7.18
%
Tangible stockholders' book value per
common share, adjusted for net unrealized accumulated losses on
debt securities held to maturity
$
20.56
$
20.87
$
20.54
$
20.60
$
20.68
$
20.56
$
20.68
____________
(1)
Includes provision for credit losses on
loans and provision for loan contingencies. See Footnote 6 in
Exhibit 1 - Selected Financial Information for more details.
(2)
In the third quarter of 2024, the Company
executed an investment portfolio repositioning which resulted in a
total pre-tax net loss of $68.5 million during the same period. The
investment portfolio repositioning was completed in early October
2024 resulting in an additional $8.1 million in losses in the
fourth quarter of 2024.
(3)
In the fourth quarter of 2023, the Company
completed a restructuring of its bank-owned life insurance (“BOLI”)
program. This was executed through a combination of a 1035 exchange
and a surrender and reinvestment into higher-yielding general
account with a new investment grade insurance carrier. This
transaction allowed for higher team member participation through an
enhanced split-dollar plan. Estimated improved yields resulting
from the enhancement have an earn-back period of approximately 2
years. In the fourth quarter of 2023, we recorded total additional
expenses and charges of $4.6 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.
(4)
Expenses incurred for actions designed to
implement the Company’s business strategy. These actions include,
but are not limited to reductions in workforce, streamlining
operational processes, promoting the Amerant brand, implementation
of new technology system applications, decommissioning of legacy
technologies, enhanced sales tools and training, expanded product
offerings and improved customer analytics to identify
opportunities.
(5)
Staff reduction costs consist of severance
expenses related to organizational rationalization.
(6)
Contract termination and related costs
associated with third party vendors resulting from the Company’s
engagement of FIS.
(7)
In the three months and year ended
December 31, 2023, includes an aggregate of $1.6 million and $6.4
million, respectively, 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. The transition to FIS was completed in 2023,
therefore, there were no significant nonrecurrent expenses in
connection with engagement of FIS in all the other periods
shown.
(8)
Includes expenses in connection with the
disposition of fixed assets due to the write-off of in-development
software in the year ended December 31, 2023.
(9)
In the year ended December 31, 2023,
includes expenses of $0.3 million in connection with the closure of
a branch in Houston, Texas in 2023. In addition, in the year ended
December 31, 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, Florida in 2023. Also, in the year ended
December 31, 2023, includes $0.5 million of ROU asset impairment
associated with the closure of a branch in Houston, Texas in
2023.
(10)
In the three months and year ended
December 31, 2024, includes loss on sale of $12.6 million,
including transaction costs, related to the sale of a portfolio of
323 business-purpose, investment property, residential mortgage
loans with a balance of approximately $71.4 million. In each of the
three months and year ended December 31, 2023, includes: (i) a 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 year ended December 31,
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.
(11)
In the three months and year ended
December 31, 2024, amounts shown are in connection with the Houston
Transaction.
(12)
In the year ended December 31, 2023,
amount represents the loss on sale of repossessed assets in
connection with our equipment-financing activities.
(13)
Related to Houston branches and included
as part of occupancy and equipment expenses. See Exhibit 5 for
additional information.
(14)
In the year ended December 31, 2024,
income tax effect amounts on nonroutine items of noninterest income
and expense were calculated using estimated tax rates of 27.14% and
22.50%, respectively. In the year ended December 31, 2023, amounts
were calculated using an estimated tax rate of 21.00%. In the three
months ended March 31, 2024, amounts were calculated based upon the
effective tax rate for the period of 21.50%. For all of the other
periods shown, amounts represent the difference between the current
and prior period year-to-date tax effect.
(15)
In the three months and year 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 $52.3 million,
respectively, and BOLI tax impact of $2.8 million in each 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.
(16)
See 2023 Form 10-K for more information on
potential dilutive instruments and its impact on diluted earnings
per share computation.
(17)
At December 31, 2024, September 30, 2024,
June 30, 2024, March 31, 2024 and December 31, 2023, other
intangible assets primarily consist of naming rights of $2.0
million, $2.1 million, $2.3 million, $2.4 million and $2.5 million,
respectively, and mortgage servicing rights (“MSRs”) of $1.5
million, $1.4 million, $1.5 million, $1.4 million and $1.4 million,
respectively. Other intangible assets are included in other assets
in the Company’s consolidated balance sheets.
(18)
There were no debt securities held to
maturity at December 31, 2024 and September 30, 2024. As of June
30, 2024, March 31, 2024 and December 31, 2023, amounts were
calculated based upon the fair value on debt securities held to
maturity, and assuming a tax rate of 25.38%, 25.40% and 25.36%,
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, as well as premiums
paid on purchased loans, accounted for as yield adjustments.
Average balances represent the daily average balances for the
periods presented.
Three Months Ended
December 31, 2024
September 30, 2024
December 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)
$
7,322,613
$
128,910
7.00
%
$
7,291,632
$
129,752
7.08
%
$
7,107,222
$
127,090
7.09
%
Debt securities available for sale
(3)(4)
1,346,108
16,069
4.75
%
1,313,366
14,273
4.32
%
1,060,113
11,603
4.34
%
Debt securities held to maturity (5)
—
—
—
%
205,958
1,752
3.38
%
227,765
1,951
3.40
%
Debt securities held for trading
—
—
—
%
—
—
—
%
—
—
—
%
Equity securities with readily
determinable fair value not held for trading
2,509
19
3.01
%
2,525
19
2.99
%
2,450
12
1.94
%
Federal Reserve Bank and FHLB stock
58,861
1,035
7.00
%
61,147
1,083
7.05
%
49,741
894
7.13
%
Deposits with banks
560,323
6,811
4.84
%
344,469
4,670
5.39
%
265,657
3,940
5.88
%
Other short-term investments
6,380
74
4.61
%
6,677
88
5.24
%
5,928
79
5.29
%
Total interest-earning assets
9,296,794
152,918
6.54
%
9,225,774
151,637
6.54
%
8,718,876
145,569
6.62
%
Total non-interest-earning assets (6)
798,113
760,198
794,844
Total assets
$
10,094,907
$
9,985,972
$
9,513,720
Three Months Ended
December 31, 2024
September 30, 2024
December 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
$
2,233,157
$
12,859
2.29
%
$
2,294,323
$
15,345
2.66
%
$
2,435,871
$
16,350
2.66
%
Money market
1,622,240
15,696
3.85
%
1,541,987
16,804
4.34
%
1,259,859
13,917
4.38
%
Savings
242,589
24
0.04
%
247,903
26
0.04
%
271,307
30
0.04
%
Total checking and saving accounts
4,097,986
28,579
2.77
%
4,084,213
32,175
3.13
%
3,967,037
30,297
3.03
%
Time deposits
2,336,324
26,427
4.50
%
2,324,694
27,260
4.67
%
2,276,720
24,985
4.35
%
Total deposits
6,434,310
55,006
3.40
%
6,408,907
59,435
3.69
%
6,243,757
55,282
3.51
%
Securities sold under agreements to
repurchase
115
1
3.46
%
—
—
—
%
106
2
7.49
%
Advances from the FHLB (7)
782,242
7,946
4.04
%
863,913
8,833
4.07
%
635,272
6,225
3.89
%
Senior notes
59,804
941
6.26
%
59,725
942
6.27
%
59,488
941
6.28
%
Subordinated notes
29,604
361
4.85
%
29,561
361
4.86
%
29,433
361
4.87
%
Junior subordinated debentures
64,178
1,030
6.38
%
64,178
1,067
6.61
%
64,178
1,081
6.68
%
Total interest-bearing
liabilities
7,370,253
65,285
3.52
%
7,426,284
70,638
3.78
%
7,032,234
63,892
3.60
%
Non-interest-bearing liabilities:
Non-interest bearing demand deposits
1,469,726
1,491,406
1,381,157
Accounts payable, accrued liabilities and
other liabilities
344,770
301,373
363,711
Total non-interest-bearing liabilities
1,814,496
1,792,779
1,744,868
Total liabilities
9,184,749
9,219,063
8,777,102
Stockholders’ equity
910,158
766,909
736,618
Total liabilities and stockholders'
equity
$
10,094,907
$
9,985,972
$
9,513,720
Excess of average interest-earning assets
over average interest-bearing liabilities
$
1,926,541
$
1,799,490
$
1,686,642
Net interest income
$
87,633
$
80,999
$
81,677
Net interest rate spread
3.02
%
2.76
%
3.02
%
Net interest margin (7)
3.75
%
3.49
%
3.72
%
Cost of total deposits (7)
2.77
%
2.99
%
2.88
%
Ratio of average interest-earning assets
to average interest-bearing liabilities
126.14
%
124.23
%
123.98
%
Average non-performing loans/ Average
total loans
1.36
%
1.54
%
0.49
%
Year Ended December
31,
2024
2023
(audited)
(in thousands, except percentages)
Average
Balances
Income/
Expense
Yield/
Rates
Average Balances
Income/ Expense
Yield/ Rates
Interest-earning assets:
Loan portfolio, net (1)(2)
$
7,157,991
$
505,484
7.06
%
$
7,006,919
$
475,405
6.78
%
Debt securities available for sale
(3)(4)
1,291,974
57,631
4.46
%
1,053,034
43,096
4.09
%
Debt securities held to maturity (5)
162,657
5,597
3.44
%
234,168
7,997
3.42
%
Debt securities held for trading
—
—
—
%
586
7
1.19
%
Equity securities with readily
determinable fair value not held for trading
2,495
106
4.25
%
2,454
33
1.34
%
Federal Reserve Bank and FHLB stock
56,234
3,957
7.04
%
53,608
3,727
6.95
%
Deposits with banks
423,185
22,492
5.31
%
322,853
18,212
5.64
%
Other short-term investments
6,348
322
5.07
%
2,115
102
4.80
%
Total interest-earning assets
9,100,884
595,589
6.54
%
8,675,737
548,579
6.32
%
Total non-interest-earning assets (6)
790,919
776,484
Total assets
$
9,891,803
$
9,452,221
Interest-bearing liabilities:
Checking and saving accounts
Interest bearing DDA
$
2,345,193
$
62,719
2.67
%
$
2,486,190
$
62,551
2.52
%
Money market
1,502,304
62,307
4.15
%
1,226,311
42,212
3.44
%
Savings
251,626
103
0.04
%
284,510
144
0.05
%
Total checking and saving accounts
4,099,123
125,129
3.05
%
3,997,011
104,907
2.62
%
Time deposits
2,302,798
105,780
4.59
%
2,074,549
78,829
3.80
%
Total deposits
6,401,921
230,909
3.61
%
6,071,560
183,736
3.03
%
Securities sold under agreements to
repurchase
60
3
5.00
%
124
7
5.65
%
Advances from the FHLB (7)
757,502
29,303
3.87
%
805,084
28,816
3.58
%
Senior notes
59,686
3,767
6.31
%
59,370
3,766
6.34
%
Subordinated notes
29,540
1,444
4.89
%
29,370
1,445
4.92
%
Junior subordinated debentures
64,178
4,206
6.55
%
64,178
4,345
6.77
%
Total interest-bearing
liabilities
7,312,887
269,632
3.69
%
7,029,686
222,115
3.16
%
Non-interest-bearing liabilities:
Non-interest bearing demand deposits
1,461,940
1,356,538
Accounts payable, accrued liabilities and
other liabilities
324,932
325,367
Total non-interest-bearing liabilities
1,786,872
1,681,905
Total liabilities
9,099,759
8,711,591
Stockholders’ equity
792,044
740,630
Total liabilities and stockholders'
equity
$
9,891,803
$
9,452,221
Excess of average interest-earning assets
over average interest-bearing liabilities
$
1,787,997
$
1,646,051
Net interest income
$
325,957
$
326,464
Net interest rate spread
2.85
%
3.16
%
Net interest margin (7)
3.58
%
3.76
%
Cost of total deposits (7)
2.94
%
2.47
%
Ratio of average interest-earning assets
to average interest-bearing liabilities
124.45
%
123.42
%
Average non-performing loans/ Average
total loans
1.03
%
0.48
%
_______________
(1)
Includes loans held for investment, net of
the allowance for credit losses, and loans held for sale. The
average balance of the allowance for credit losses was $80.5
million, $92.1 million and $92.7 million in the three months ended
December 31, 2024, September 30, 2024 and December 31, 2023,
respectively, and $90.0 million and $90.0 million in the years
ended December 31, 2024 and 2023, respectively. The average balance
of total loans held for sale was $357.2 million, $612.9 million and
$100.7 million in the three months ended December 31, 2024,
September 30, 2024 and December 31, 2023, respectively, and $353.9
million and $77.8 million in the years ended December 31, 2024 and
2023, respectively.
(2)
Includes average non-performing loans of
$101.0 million, $113.5 million and $35.1 million for the three
months ended December 31, 2024, September 30, 2024 and December 31,
2023, respectively, and $74.9 million and $34.3 million for the
years ended December 31, 2024 and 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 $31.7 million, $89.4 million and $142.1
million in the three months ended December 31, 2024, September 30,
2024 and December 31, 2023, respectively, and $84.5 million and
$118.5 million in the years ended December 31, 2024 and 2023,
respectively.
(4)
Includes nontaxable securities with
average balances of $60.4 million, $19.9 million and $17.8 million
for the three months ended December 31, 2024, September 30, 2024
and December 31, 2023, respectively, and $29.4 million and $17.8
million in the years ended December 31, 2024 and 2023,
respectively. The tax equivalent yield for these nontaxable
securities was 4.39%, 4.33% and 4.78% for the three months ended
December 31, 2024, September 30, 2024 and December 31, 2023,
respectively, and 4.45% and 4.83% for the years ended December 31,
2024 and 2023, respectively. In 2024 and 2023, 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 $44.5 million and $48.9 million for the three
months ended September 30, 2024 and December 31, 2023,
respectively. We had no average held to maturity balances at
December 31, 2024. We had average balances of $35.2 million and
$49.8 million in the years ended December 31, 2024 and 2023,
respectively. The tax equivalent yield for these nontaxable
securities was 4.43% and 4.26% for the quarter ended September 30,
2024 and December 31, 2023, respectively, and 4.29% and 4.22% for
the years ended December 31, 2024 and 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)
See Glossary of Terms and Definitions for
definitions of financial terms.
Exhibit 4 - Noninterest Income
This table shows the amounts of each of the categories of
noninterest income for the periods presented.
Three Months Ended
Year Ended December
31,
December 31, 2024
September 30, 2024
December 31, 2023
2024
2023
(audited)
(in thousands, except percentages)
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Deposits and service fees
$
5,501
23.2
%
$
5,046
10.6
%
$
4,424
22.5
%
$
20,153
203.4
%
$
19,376
22.1
%
Brokerage, advisory and fiduciary
activities
4,653
19.7
%
4,466
9.4
%
4,249
21.7
%
17,984
181.5
%
17,057
19.5
%
Change in cash surrender value of bank
owned life insurance (“BOLI”)(1)
2,364
10.0
%
2,332
4.9
%
849
4.3
%
9,280
93.7
%
5,173
5.9
%
Cards and trade finance servicing fees
1,533
6.5
%
1,430
3.0
%
1,238
6.3
%
5,517
55.7
%
3,067
3.5
%
Gain (loss) on early extinguishment of
FHLB advances, net
1,428
6.0
%
—
—
%
6,461
32.9
%
1,617
16.3
%
40,084
45.8
%
Securities (losses) gains, net (2)
(8,200
)
(34.6
)%
(68,484
)
(143.6
)%
33
0.2
%
(76,855
)
(775.6
)%
(10,989
)
(12.6
)%
Derivative (losses) gains, net (3)
—
—
%
—
—
%
(151
)
(0.8
)%
(196
)
(2.0
)%
28
—
%
Loan-level derivative income (4)
706
3.0
%
3,515
7.4
%
837
4.3
%
7,044
71.1
%
4,580
5.2
%
Gain on sale of Houston Franchise
12,636
53.4
%
—
—
%
—
—
%
12,636
127.5
%
—
—
%
Other noninterest income (5)
3,063
12.8
%
4,012
8.3
%
1,673
8.5
%
12,729
128.4
%
9,120
10.6
%
Total noninterest income
$
23,684
100.0
%
$
(47,683
)
(100.0
)%
$
19,613
100.0
%
$
9,909
100.0
%
$
87,496
100.0
%
__________________
(1)
Changes in cash surrender value of BOLI
are not taxable. In the three months and year 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)
Amounts are primarily in connection with
losses and gains on the sale of debt securities available for sale.
In the three months ended December 31, 2024 and September 30, 2024,
includes a total net loss of $8.1 million and $68.5 million,
respectively, as a result of the investment portfolio
repositioning. In the year ended December 31, 2024, includes $76.7
million as a result of the investment portfolio repositioning.
(3) Net unrealized gains and losses related to uncovered
interest rate caps with clients.
(4)
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.
(5)
Includes mortgage banking income of $1.1
million, $2.8 million and $0.6 million in the three months ended
December 31, 2024, September 30, 2024 and December 31, 2023,
respectively, and $6.9 million and $4.5 million in the years ended
December 31, 2024 and 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. In
addition, includes $0.5 million BOLI death benefits received in the
year ended December 31, 2024. 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
Year Ended December
31,
December 31, 2024
September 30, 2024
December 31, 2023
2024
2023
(audited)
(in thousands, except percentages)
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Salaries and employee benefits (1)
$
35,284
42.3
%
$
34,979
45.9
%
$
33,049
30.1
%
$
137,078
45.8
%
$
133,506
42.9
%
Occupancy and equipment (2)
5,719
6.9
%
5,891
7.7
%
7,015
6.4
%
27,127
9.1
%
27,843
8.9
%
Professional and other services fees
(3)
14,308
17.2
%
13,711
18.0
%
14,201
12.9
%
51,092
17.1
%
34,569
11.1
%
Loan-level derivative expense (4)
34
—
%
1,802
2.4
%
182
0.2
%
2,420
0.8
%
1,910
0.6
%
Telecommunications and data processing
(5)
2,967
3.6
%
2,991
3.9
%
3,838
3.5
%
12,223
4.1
%
15,485
5.0
%
Depreciation and amortization (6)
1,734
2.1
%
1,737
2.3
%
1,480
1.3
%
6,600
2.2
%
6,842
2.2
%
FDIC assessments and insurance
2,932
3.5
%
2,863
3.8
%
2,535
2.3
%
11,575
3.9
%
10,601
3.4
%
Losses on loans held for sale carried at
the lower cost or fair value (7)
12,642
15.2
%
—
—
%
37,495
34.2
%
13,900
4.6
%
43,057
13.8
%
Advertising expenses
3,703
4.4
%
3,468
4.6
%
3,169
2.9
%
14,492
4.8
%
12,811
4.1
%
Other real estate owned and repossessed
assets (income) expense, net (8)
(196
)
(0.2
)%
5,535
7.3
%
(205
)
(0.2
)%
4,837
1.6
%
2,092
0.7
%
Contract termination costs (9)
—
—
%
—
—
%
—
—
%
—
—
%
1,550
0.5
%
Other operating expenses (10)
4,259
5.0
%
3,231
4.1
%
6,943
6.4
%
18,146
6.0
%
21,089
6.8
%
Total noninterest expense
(11)
$
83,386
100.0
%
$
76,208
100.0
%
$
109,702
100.0
%
$
299,490
100.0
%
$
311,355
100.0
%
__________
(1)
Includes $1.4 million in expenses related
to the Houston Transaction in the three months and year ended
December 31, 2024. In addition, includes staff reduction costs of
$1.1 million and $4.0 million in the three months and year ended
December 31, 2023, respectively, which consist of severance
expenses primarily related to organizational rationalization.
(2)
In the year ended December 31, 2024,
includes fixed assets impairment charge of $3.4 million in
connection with the Houston Transaction. In the year ended December
31, 2023, includes a rent termination fee of $0.3 million in
connection with the closure of a branch in Houston, Texas, as well
as an aggregate of $1.1 million related to ROU asset impairments in
connection with the closure of two branches in 2023 (one branch in
Miami, Florida and another branch in Houston, Texas).
(3)
Includes $0.1 million and $0.4 million, in
legal expenses in connection with the Houston Transaction in the
three months ended December 31, 2024 and year ended December 31,
2024, respectively. In addition, includes additional, nonrecurrent
expenses of $1.2 million and $5.8 million in the three months and
year ended December 31, 2023, respectively, related to the
engagement of FIS. Lastly, includes recurring service fees in
connection with the engagement of FIS in the three months ended
December 31, 2024 and September 30, 2024, and December 31, 2023 and
the years ended December 31, 2024 and 2023.
(4)
Includes services fees in connection with
our loan-level derivative income generation activities.
(5)
Includes a charge of $1.4 million in the
year ended December 31, 2023 related to the disposition of fixed
assets due to the write off of in- development software. In
addition, in the three months and year ended December 31, 2023,
includes $0.4 million of software expenses related to legacy
applications running in parallel to new core banking
applications.
(6)
Includes a charge of $0.9 million in the
year ended December 31, 2023 for the accelerated depreciation of
leasehold improvements in connection with the closure of a branch
in Miami, Florida in 2023.
(7)
In the three months ended December 31,
2024 and 2023 as well as years ended December 31, 2024 and 2023,
consists of losses on loans held for sale carried at the lower of
fair value or cost, including valuation allowance as a result of
changes in their fair value and losses on the sale of these
loans.
(8)
In the year ended December 31, 2023,
includes a loss on sale of repossessed assets in connection with
our equipment-financing activities of $2.6 million.
(9)
Contract termination and related costs
associated with third party vendors resulting from the Company’s
transition to our new technology provider.
(10)
In the three months and year ended
December 31, 2024, includes broker fees of $1.0 million and $1.3
million in connection with the Houston Transaction. In each of the
three months and the year 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 each of the three
months and the year ended December 31, 2023, includes additional
costs of $1.1 million in connection with the restructuring of the
Company’s BOLI. Also, in the year ended December 31, 2023, includes
an impairment charge of $2.0 million related to an investment
carried at cost and included in other assets. 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.
(11)
Includes $3.7 million, $3.9 million, and
$3.5 million in the three months ended December 31, 2024, September
30, 2024 and December 31, 2023, respectively, and $14.1 million and
$14.4 million in the years ended December 31, 2024 and 2023,
respectively, related to Amerant Mortgage, primarily consisting of
salaries and employee benefits, mortgage lending costs and
professional and other service fees.
Exhibit 6 - Consolidated Balance
Sheets
(in thousands, except share data)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Assets
(audited)
Cash and due from banks
$
39,197
$
40,538
$
32,762
$
41,231
$
47,234
Interest earning deposits with banks
519,853
614,345
238,346
577,843
242,709
Restricted cash
24,365
10,087
32,430
33,897
25,849
Other short-term investments
6,944
6,871
6,781
6,700
6,080
Cash and cash equivalents
590,359
671,841
310,319
659,671
321,872
Securities
Debt securities available for sale, at
fair value
1,437,170
1,476,378
1,269,356
1,298,073
1,217,502
Debt securities held to maturity, at
amortized cost (1)
—
—
219,613
224,014
226,645
Equity securities with readily
determinable fair value not held for trading
2,477
2,562
2,483
2,480
2,534
Federal Reserve Bank and Federal Home Loan
Bank stock
58,278
63,604
56,412
54,001
50,294
Securities
1,497,925
1,542,544
1,547,864
1,578,568
1,496,975
Loans held for sale, at lower of cost or
fair value (2)
—
553,941
551,828
—
365,219
Mortgage loans held for sale, at fair
value
42,911
43,851
60,122
48,908
26,200
Loans held for investment, gross
7,224,368
6,964,171
6,710,961
6,957,475
6,873,493
Less: Allowance for credit losses
84,963
79,890
94,400
96,050
95,504
Loans held for investment, net
7,139,405
6,884,281
6,616,561
6,861,425
6,777,989
Bank owned life insurance
243,547
241,183
238,851
237,314
234,972
Premises and equipment, net
31,814
32,866
33,382
44,877
43,603
Deferred tax assets, net
53,543
41,138
48,779
48,302
55,635
Operating lease right-of-use assets
100,028
100,158
100,580
117,171
118,484
Goodwill
19,193
19,193
19,193
19,193
19,193
Accrued interest receivable and other
assets (3)(4)
178,966
222,131
220,259
202,343
256,185
Total assets
$
9,897,691
$
10,353,127
$
9,747,738
$
9,817,772
$
9,716,327
Liabilities and Stockholders'
Equity
Deposits
Demand
Noninterest bearing
$
1,504,229
$
1,482,061
$
1,465,140
$
1,397,331
$
1,426,919
Interest bearing
2,229,467
2,389,605
2,316,976
2,619,115
2,560,629
Savings and money market
1,885,928
1,835,700
1,723,233
1,616,719
1,610,218
Time
2,234,445
2,403,578
2,310,662
2,245,078
2,297,097
Total deposits
7,854,069
8,110,944
7,816,011
7,878,243
7,894,863
Advances from the Federal Home Loan
Bank
745,000
915,000
765,000
715,000
645,000
Senior notes
59,843
59,764
59,685
59,605
59,526
Subordinated notes
29,624
29,582
29,539
29,497
29,454
Junior subordinated debentures held by
trust subsidiaries
64,178
64,178
64,178
64,178
64,178
Operating lease liabilities (5)
106,071
105,875
105,861
122,267
123,167
Accounts payable, accrued liabilities and
other liabilities (6)
148,439
164,896
173,122
210,897
164,071
Total liabilities
9,007,224
9,450,239
9,013,396
9,079,687
8,980,259
Stockholders’ equity
Class A common stock
4,214
4,210
3,357
3,373
3,361
Additional paid in capital
343,830
342,508
189,601
192,237
192,701
Retained earnings
582,229
569,131
620,299
618,359
610,802
Accumulated other comprehensive loss
(39,806
)
(12,961
)
(78,915
)
(75,884
)
(70,796
)
Total stockholders' equity
890,467
902,888
734,342
738,085
736,068
Total liabilities and stockholders'
equity
$
9,897,691
$
10,353,127
$
9,747,738
$
9,817,772
$
9,716,327
__________
(1)
Estimated fair value of $192,403, $198,909
and $204,945 at June 30, 2024, March 31, 2024 and December 31,
2023, respectively. During the third quarter of 2024, the Company
executed an investment portfolio repositioning and transferred
approximately $220 million in debt securities from held to maturity
to the available for sale category.
(2)
As of September 30, 2024 and June 30,
2024, includes loans held for sale and a valuation allowance of
$1.3 million, in connection with the Houston Transaction. As of
December 31, 2023, includes a valuation allowance of $35.5 million
as a result of fair value adjustment.
(3)
As of December 31, 2024, September 30,
2024, June 30, 2024, March 31, 2024 and December 31, 2023, includes
derivative assets with a total fair value of $48.0 million, $52.3
million, $64.0 million, $64.7 million and $59.9 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,
which were collected in the first quarter of 2024.
(4)
As of September 30, 2024 and June 30,
2024, includes other assets for sale of approximately $21.4 million
and $23.6 million, respectively, in connection with the Houston
Transaction.
(5)
Consists of total long-term lease
liabilities. Total short-term lease liabilities are included in
other liabilities.
(6)
As of December 31, 2024, September 30,
2024, June 30, 2024, March 31, 2024 and December 31, 2023, includes
derivatives liabilities with a total fair value of $47.6 million,
$51.3 million, $62.9 million, $63.8 million and $59.4 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)
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
Real estate loans
(audited)
Commercial real estate
Non-owner occupied
$
1,678,473
$
1,688,308
$
1,714,088
$
1,672,470
$
1,616,200
Multi-family residential
336,229
351,815
359,257
349,917
407,214
Land development and construction
loans
495,208
421,489
343,472
333,198
300,378
2,509,910
2,461,612
2,416,817
2,355,585
2,323,792
Single-family residential
1,516,082
1,499,599
1,446,569
1,490,711
1,466,608
Owner occupied
1,007,074
1,001,762
981,405
1,193,909
1,175,331
5,033,066
4,962,973
4,844,791
5,040,205
4,965,731
Commercial loans
1,747,859
1,630,018
1,521,533
1,550,140
1,503,187
Loans to financial institutions and
acceptances
170,435
92,489
48,287
29,490
13,375
Consumer loans and overdrafts (1)
273,008
278,391
296,350
337,640
391,200
Total loans
$
7,224,368
$
6,964,171
$
6,710,961
$
6,957,475
$
6,873,493
__________________
(1)
As of December 31, 2024, September 30,
2024, June 30, 2024, March 31, 2024 and December 31, 2023 includes
$83.5 million, $103.9 million, $131.9 million, $163.3 million and
$210.9 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)
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
Loans held for
sale at the lower of fair value or cost
(audited)
Real estate loans
Commercial real estate
Non-owner occupied
$
—
$
111,591
$
112,002
$
—
$
—
Multi-family residential
—
—
918
—
309,612
Land development and construction
loans
—
35,020
29,923
—
55,607
$
—
$
146,611
$
142,843
$
—
$
365,219
Single-family residential
—
87,820
88,507
—
—
Owner occupied
—
221,774
220,718
—
—
—
456,205
452,068
—
365,219
Commercial loans
—
87,866
90,353
—
—
Consumer loans
—
9,870
9,407
—
—
Total loans held for sale at the lower of
fair value or cost (1)
—
553,941
551,828
—
365,219
Mortgage loans
held for sale at fair value
Land development and construction
loans
10,768
10,608
7,776
26,058
12,778
Single-family residential
32,143
33,243
52,346
22,850
13,422
Total Mortgage loans held for sale, at
fair value (2)
42,911
43,851
60,122
48,908
26,200
Total loans held for sale
$
42,911
$
597,792
$
611,950
$
48,908
$
391,419
__________________
(1)
As of September 30, 2024 and June 30,
2024, includes loans transferred from the held for investment to
the held for sale category in the second and third quarters of 2024
as a result of the Houston Transaction. In the fourth quarter of
2024, the Company completed the sale of the Houston franchise. As
of December 31, 2023, includes Houston-based CRE loans transferred
from the held for investment to the held for sale category in the
fourth quarter of 2023. The Company subsequently sold these loans
in the first quarter of 2024. See exhibit 2 for more information on
valuation allowance recognized in 2024 and 2023 on loans held for
sale carried at the lower of cost or fair value.
(2)
Loans held for sale in connection with
Amerant Mortgage’s ongoing business.
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)
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
Non-Accrual Loans
(audited)
Real Estate Loans
Commercial real estate (CRE)
Non-owner occupied
$
—
$
1,916
$
—
$
—
$
—
Multi-family residential
—
—
6
—
8
—
1,916
6
—
8
Single-family residential
8,140
13,452
3,726
4,400
2,459
Land development and construction
loans
4,119
—
—
—
—
Owner occupied
23,191
29,240
26,309
1,958
3,822
35,450
44,608
30,041
6,358
6,289
Commercial loans
64,572
68,654
67,005
21,833
21,949
Consumer loans and overdrafts
—
—
4
45
38
Total Non-Accrual Loans(1)
$
100,022
$
113,262
$
97,050
$
28,236
$
28,276
Past Due Accruing Loans
Real Estate Loans
Commercial real estate (CRE)
Owner occupied
837
—
769
—
—
Single-family residential
1,201
1,129
2,656
1,149
5,218
Commercial
2,033
104
—
918
857
Consumer loans and overdrafts
8
434
477
—
49
Total Past Due Accruing Loans
(2)
4,079
1,667
3,902
2,067
6,124
Total Non-Performing Loans
104,101
114,929
100,952
30,303
34,400
Other Real Estate Owned
18,074
14,509
20,181
20,181
20,181
Total Non-Performing Assets
$
122,175
$
129,438
$
121,133
$
50,484
$
54,581
__________________
(1)
See September 30, 2024 Form 10-Q, June 30,
2024 Form 10-Q, March 31, 2024 Form 10-Q and 2023 Form 10-K for
more information about the activity of non-accrual loans in
the third, second and first quarters of 2024 and all periods in
2023.
(2)
Loans past due 90 days or more but still
accruing.
Loans by Credit Quality Indicators
This table shows the Company’s loans by credit quality
indicators. We have not purchased credit-impaired loans.
December 31, 2024
September 30, 2024
December 31, 2023
(audited)
(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
$
361
$
21,430
$
—
$
21,791
$
34,374
$
1,916
$
—
$
36,290
$
—
$
—
$
—
$
—
Multi-family residential
—
—
—
—
—
—
—
—
—
8
—
8
Land development
and
construction
loans
—
4,119
—
4,119
—
—
—
—
—
—
—
—
361
25,549
—
25,910
34,374
1,916
—
36,290
—
8
—
8
Single-family residential
—
9,438
—
9,438
—
13,544
—
13,544
—
2,800
—
2,800
Owner occupied
5,047
24,097
—
29,144
29,603
29,310
—
58,913
15,723
3,890
—
19,613
5,408
59,084
—
64,492
63,977
44,770
—
108,747
15,723
6,698
—
22,421
Commercial loans
—
66,605
—
66,605
12,442
69,429
—
81,871
30,261
22,971
—
53,232
Consumer loans and
overdrafts
—
8
—
8
—
—
—
—
—
41
—
41
$
5,408
$
125,697
$
—
$
131,105
$
76,419
$
114,199
$
—
$
190,618
$
45,984
$
29,710
$
—
$
75,694
__________
(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)
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
(audited)
Domestic
$
5,277,763
$
5,553,336
$
5,281,946
$
5,288,702
$
5,430,059
Foreign:
Venezuela
1,889,331
1,887,282
1,918,134
1,988,470
1,870,979
Others
686,975
670,326
615,931
601,071
593,825
Total foreign
2,576,306
2,557,608
2,534,065
2,589,541
2,464,804
Total deposits
$
7,854,069
$
8,110,944
$
7,816,011
$
7,878,243
$
7,894,863
Glossary of Terms and Definitions
- Total gross loans: include loans held for investment net of
unamortized deferred loan origination fees and costs, as well as
loans held for sale.
- Core deposits: consist of total deposits excluding all time
deposits.
- Assets under management and custody: consists of assets held
for clients in an agency or fiduciary capacity which are not assets
of the Company and therefore are not included in the consolidated
financial statements.
- Net interest margin, or NIM: defined as net interest income, or
NII, divided by average interest-earning assets, which are loans,
securities, deposits with banks and other financial assets which
yield interest or similar income.
- ROA and Core ROA are calculated based upon the average daily
balance of total assets.
- ROE and Core ROE are calculated based upon the average daily
balance of stockholders’ equity.
- Core efficiency ratio is the efficiency ratio less the effect
of restructuring costs and other non-routine items, which are
described in Exhibit 2 - Non-GAAP Financial Measures
Reconciliation.
- Total revenue is the result of net interest income before
provision for credit losses plus noninterest income.
- Total capital ratio: total stockholders’ equity divided by
total risk-weighted assets, calculated according to the
standardized regulatory capital ratio calculations.
- Tier 1 capital ratio: Tier 1 capital divided by total
risk-weighted assets. Tier 1 capital is composed of Common Equity
Tier 1 (CET1) capital plus outstanding qualifying trust preferred
securities of $62.3 million at each of all the dates
presented.
- Tier 1 leverage ratio: Tier 1 capital divided by quarter to
date average assets.
- Common equity tier 1 capital ratio, CET1: Tier 1 capital
divided by total risk-weighted assets.
- Tangible common equity ratio: calculated as the ratio of common
equity less goodwill and other intangibles divided by total assets
less goodwill and other intangible assets. Other intangible assets
primarily consist of naming rights and mortgage servicing rights
and are included in other assets in the Company’s consolidated
balance sheets.
- Tangible common equity ratio, adjusted for unrealized losses on
debt securities held to maturity: calculated in the same manner
described in tangible common equity but also includes unrealized
losses on debt securities held to maturity in the balance of common
equity and total assets.
- Loans to Deposits ratio: calculated as the ratio of total loans
gross divided by total deposits.
- Non-performing assets include all accruing loans past due by 90
days or more, all nonaccrual loans and other real estate owned
(“OREO”) properties acquired through or in lieu of foreclosure, and
other repossessed assets.
- Non-performing loans include all accruing loans past due by 90
days or more and all nonaccrual loans
- Ratio for net charge-offs/average total loans held for
investments: calculated based upon the average daily balance of
outstanding loan principal balance net of unamortized deferred loan
origination fees and costs, excluding the allowance for credit
losses.
- Other operating expenses: total noninterest expense less salary
and employee benefits.
- Efficiency ratio: total noninterest expense divided by the sum
of noninterest income and NII.
- The terms of the FHLB advance agreements require the Bank to
maintain certain investment securities or loans as collateral for
these advances.
- Cost of total deposits: calculated based upon the average
balance of total noninterest bearing and interest bearing deposits,
which includes time deposits.
- AFS: Available-for-sale debt securities
- HTM: Held-to-maturity debt securities
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250122971702/en/
Investors Laura Rossi InvestorRelations@amerantbank.com (305)
460-8728
Media Alexis Dominguez MediaRelations@amerantbank.com (305)
441-8414
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