Amerant Bancorp Inc. [AMTB] Filings

10-Q 1 amtb-20230630.htm 10-Q amtb-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-38534

Amerant Bancorp Inc.

(Exact name of registrant as specified in its charter)


Florida		65-0032379
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
220 Alhambra Circle
Coral Gables,	Florida	33134
(Address of principal executive offices)		(Zip Code)
(305)		460-4728
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of exchange on which registered
Class A Common Stock	AMTB	NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class						Outstanding as of July 24, 2023
Class A Common Stock, $0.10 par value per share						33,696,505 shares of Class A Common Stock

AMERANT BANCORP INC. AND SUBSIDIARIES

FORM 10-Q

June 30, 2023

INDEX


		Page
PART I.	FINANCIAL INFORMATION
Item 1	Financial Statements	3
	Consolidated Balance Sheets as of June 30, 2023 (Unaudited) and December 31, 2022	3
	Consolidated Statements of Operations and Comprehensive (Loss) Income for the three and six month periods ended June 30, 2023 and 2022 (Unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Equity for the three and six month periods ended June 30, 2023 and 2022 (Unaudited)	6
	Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (Unaudited)	8
	Notes to Interim Consolidated Financial Statements (Unaudited)	10

















Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	59
	Cautionary Notice Regarding Forward-Looking Statements	59
	Overview	62
	Results of Operations	72
	Financial Condition	97
Item 3	Quantitative and Qualitative Disclosures About Market Risk	122
Item 4	Controls and Procedures	126
PART II	OTHER INFORMATION
Item 1	Legal Proceedings	128
Item 1A	Risk Factors	128
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	128
Item 3	Defaults Upon Senior Securities	128
Item 4	Mine Safety Disclosures	128
Item 5	Other Information	129
Item 6	Exhibits	130
	Signatures	131

Table of Contents

Part 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Amerant Bancorp Inc. and Subsidiaries

Consolidated Balance Sheets


(in thousands, except share data)	(Unaudited) June 30, 2023		December 31, 2022

Assets
Cash and due from banks	$	45,184	$	19,486
Interest earning deposits with banks	365,673		228,955
Restricted cash	34,204		42,160
Cash and cash equivalents	445,061		290,601
Securities
Debt securities available for sale, at fair value	1,027,676		1,057,621
Debt securities held to maturity, at amortized cost (estimated fair value of $209,546 and $217,609 at June 30, 2023 and December 31, 2022, respectively)	234,369		242,101
Trading securities	298		—
Equity securities with readily determinable fair value not held for trading	2,500		11,383
Federal Reserve Bank and Federal Home Loan Bank stock	50,460		55,575
Securities	1,315,303		1,366,680

Mortgage loans held for sale, at fair value	49,942		62,438
Loans held for investment, gross	7,167,016		6,857,194
Less: Allowance for credit losses	105,956		83,500
Loans held for investment, net	7,061,060		6,773,694
Bank owned life insurance	231,253		228,412
Premises and equipment, net	43,714		41,772
Deferred tax assets, net	56,779		48,703
Operating lease right-of-use assets	116,161		139,987
Goodwill	20,525		19,506
Accrued interest receivable and other assets	179,728		156,011
Total assets	$	9,519,526	$	9,127,804
Liabilities and Stockholders' Equity
Deposits
Demand
Noninterest bearing	$	1,293,522	$	1,367,664
Interest bearing	2,773,120		2,300,469
Savings and money market	1,431,375		1,647,811
Time	2,081,554		1,728,255
Total deposits	7,579,571		7,044,199
Advances from the Federal Home Loan Bank	770,000		906,486
Senior notes	59,368		59,210
Subordinated notes	29,369		29,284
Junior subordinated debentures held by trust subsidiaries	64,178		64,178
Operating lease liabilities	119,921		140,147
Accounts payable, accrued liabilities and other liabilities	176,163		178,574
Total liabilities	8,798,570		8,422,078
Contingencies (Note 16)

Stockholders’ equity
Class A common stock, $0.10 par value, 250 million shares authorized; 33,736,159 shares issued and outstanding at June 30, 2023 (33,815,161 shares issued and outstanding at December 31, 2022)	3,374		3,382

Additional paid in capital	195,275		194,694

Retained earnings	611,829		590,375
Accumulated other comprehensive loss	(86,926)		(80,635)
Total stockholders' equity before noncontrolling interest	723,552		707,816
Noncontrolling interest	(2,596)		(2,090)
Total stockholders' equity	720,956		705,726
Total liabilities and stockholders' equity	$	9,519,526	$	9,127,804

The accompanying notes are an integral part of these consolidated financial statements (unaudited).

Table of Contents

Amerant Bancorp Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Interest income
Loans	$	119,570	$	61,514	$	228,071	$	117,852
Investment securities	13,233		9,135		26,532		17,763
Interest earning deposits with banks	5,694		518		9,024		650
Total interest income	138,497		71,167		263,627		136,265

Interest expense
Interest bearing demand deposits	16,678		1,034		29,533		1,324
Savings and money market deposits	9,437		1,365		17,364		2,110
Time deposits	18,528		4,503		31,362		8,784
Advances from the Federal Home Loan Bank	7,621		3,341		14,384		5,822
Senior notes	941		942		1,883		1,884
Subordinated notes	362		361		723		449
Junior subordinated debentures	1,052		676		2,167		1,302
Securities sold under agreements to repurchase	1		—		1		—
Total interest expense	54,620		12,222		97,417		21,675
Net interest income	83,877		58,945		166,210		114,590
Provision for (reversal of) credit losses	29,077		(951)		40,777		(10,226)
Net interest income after provision for (reversal of) credit losses	54,800		59,896		125,433		124,816

Noninterest income
Deposits and service fees	4,944		4,577		9,899		9,197
Brokerage, advisory and fiduciary activities	4,256		4,439		8,438		9,035
Change in cash surrender value of bank owned life insurance	1,429		1,334		2,841		2,676
Cards and trade finance servicing fees	562		508		1,095		1,098
Loan-level derivative income	476		1,009		2,547		4,161
Gain (loss) on early extinguishment of advances from the Federal Home Loan Bank, net	13,440		2		26,613		(712)
Derivative gains (losses), net	242		855		256		(490)
Securities losses, net	(1,237)		(2,602)		(10,968)		(1,833)
Other noninterest income	2,507		2,809		5,241		3,824
Total noninterest income	26,619		12,931		45,962		26,956

Noninterest expense
Salaries and employee benefits	34,247		30,212		69,123		60,615
Professional and other services fees	7,415		4,734		15,043		10,873
Occupancy and equipment	6,737		7,760		13,535		14,485
Telecommunication and data processing	5,027		3,214		8,091		7,252
Advertising expenses	4,332		3,253		6,918		6,225
FDIC assessments and insurance	2,739		1,526		5,476		2,922
Other real estate owned and repossessed assets expense, net	2,431		3,174		2,431		3,174
Depreciation and amortization	2,275		1,294		3,567		2,446
Contract termination costs	1,550		2,802		1,550		6,814
Loan-level derivative expense	110		2,012		1,710		3,055
Loans held for sale valuation expense (reversal)	—		(300)		—		159
Other operating expenses	5,637		2,560		9,789		5,039
Total noninterest expenses	72,500		62,241		137,233		123,059
Income before income tax expense	8,919		10,586		34,162		28,713
Income tax expense	(1,873)		(2,234)		(7,174)		(6,058)
Net income before attribution of noncontrolling interest	7,046		8,352		26,988		22,655
Noncontrolling interest	(262)		(72)		(506)		(1,148)
Net income attributable to Amerant Bancorp Inc.	$	7,308	$	8,424	$	27,494	$	23,803

The accompanying notes are an integral part of these consolidated financial statements (unaudited).

Table of Contents

Amerant Bancorp Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2023		2022		2023		2022

Other comprehensive loss, net of tax
Net unrealized holding losses on debt securities available for sale arising during the period	$	(13,487)	$	(26,442)	$	(7,370)	$	(66,079)
Net unrealized holding gains on cash flow hedges arising during the period	276		54		88		178
Reclassification adjustment for items included in net income	604		(147)		991		(275)
Other comprehensive loss	(12,607)		(26,535)		(6,291)		(66,176)
Comprehensive (loss) income	$	(5,299)	$	(18,111)	$	21,203	$	(42,373)

Earnings Per Share (Note 18):
Basic earnings per common share	$	0.22	$	0.25	$	0.82	$	0.70
Diluted earnings per common share	$	0.22	$	0.25	$	0.81	$	0.69

The accompanying notes are an integral part of these consolidated financial statements (unaudited).

Table of Contents

Amerant Bancorp Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

Three and Six Month Periods Ended June 30, 2023


	Common Stock				Additional Paid in Capital	Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (loss)			Total Stockholders' Equity Before Noncontrolling Interest			Noncontrolling interest			Total Stockholders' Equity
(in thousands, except share data)	Shares Outstanding	Issued Shares - Par Value
	Class A

Balance at December 31, 2022	33,815,161		$	3,382			$	194,694		$	—		$	590,375		$	(80,635)		$	707,816		$	(2,090)	$	705,726

Repurchase of Class A common stock	(22,403)		—				—			(566)			—			—			(566)			—		(566)
Treasury stock retired	—		(2)				(564)			566			—			—			—			—		—
Restricted stock issued	10,440		1				(1)			—			—			—			—			—		—
Restricted stock, restricted stock units and performance stock units surrendered	(44,896)		(4)				(1,166)			—			—			—			(1,170)			—		(1,170)
Restricted stock forfeited	(1,394)		—				—			—			—			—			—			—		—
Performance stock units vested	10,621		1				(1)			—			—			—			—			—		—
Restricted stock units vested	46,731		5				(5)			—			—			—			—			—		—
Stock-based compensation expense	—		—				1,825			—			—			—			1,825			—		1,825
Net income attributable to Amerant Bancorp Inc.	—		—				—			—			20,186			—			20,186			—		20,186
Dividends paid	—		—				—			—			(3,017)			—			(3,017)			—		(3,017)
Net loss attributable to noncontrolling-interest shareholders	—		—				—			—			—			—			—			(244)		(244)
Other comprehensive income	—		—				—			—			—			6,316			6,316			—		6,316
Balance at March 31, 2023	33,814,260		$	3,383			$	194,782		$	—		$	607,544		$	(74,319)		$	731,390		$	(2,334)	$	729,056
Repurchase of Class A common stock	(95,262)		—				—			(1,659)			—			—			(1,659)			—		(1,659)
Treasury stock retired	—		(10)				(1,649)			1,659			—			—			—			—		—

Restricted stock and restricted stock units surrendered	(4,414)		(1)				(198)			—			—			—			(199)			—		(199)
Stock issued for employee stock purchase plan	30,557		3				683			—			—			—			686			—		686
Restricted stock forfeited	(26,432)		(3)				3			—			—			—			—			—		—
Restricted stock units vested	17,450		2				(2)			—			—			—			—			—		—
Stock-based compensation expense	—		—				1,656			—			—			—			1,656			—		1,656
Net income attributable to Amerant Bancorp Inc.	—		—				—			—			7,308			—			7,308			—		7,308
Dividends paid	—		—				—			—			(3,023)			—			(3,023)			—		(3,023)
Net loss attributable to noncontrolling-interest shareholders	—		—				—			—			—			—			—			(262)		(262)
Other comprehensive loss	—		—				—			—			—			(12,607)			(12,607)			—		(12,607)
Balance at June 30, 2023	33,736,159		$	3,374			$	195,275		$	—		$	611,829		$	(86,926)		$	723,552		$	(2,596)	$	720,956

The accompanying notes are an integral part of these consolidated financial statements (unaudited).

Table of Contents

Amerant Bancorp Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

Three and Six Month Periods Ended June 30, 2022


	Common Stock				Additional Paid in Capital	Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (loss)			Total Stockholders' Equity Before Noncontrolling Interest			Noncontrolling interest			Total Stockholders' Equity
(in thousands, except share data)	Shares Outstanding	Issued Shares - Par Value
	Class A

Balance at December 31, 2021	35,883,320		$	3,589			$	262,510		$	—		$	553,167		$	15,217		$	834,483		$	(2,610)	$	831,873
Cumulative effect of adoption of accounting principle, net of tax	—		—				—			—			(13,872)			—			(13,872)			—		(13,872)
Repurchase of Class A common stock	(1,643,480)		—				—			(54,820)			—			—			(54,820)			—		(54,820)
Treasury stock retired	—		(165)				(54,655)			54,820			—			—			—			—		—
Restricted stock issued	104,762		10				(10)			—			—			—			—			—		—
Restricted stock surrendered	(15,174)		(2)				(994)			—			—			—			(996)			—		(996)
Restricted stock forfeited	(1,000)		—				—			—			—			—			—			—		—
Restricted stock units vested	22,394		2				(2)			—			—			—			—			—		—
Stock-based compensation expense	—		—				1,260			—			—			—			1,260			—		1,260
Net income attributable to Amerant Bancorp Inc.	—		—				—			—			15,379			—			15,379			—		15,379
Dividends paid	—		—				—			—			(3,154)			—			(3,154)			—		(3,154)
Net loss attributable to noncontrolling-interest shareholders	—		—				—			—			—			—			—			(1,076)		(1,076)
Other comprehensive loss	—		—				—			—			—			(39,641)			(39,641)			—		(39,641)
Balance at March 31, 2022	34,350,822		$	3,434			$	208,109		$	—		$	551,520		$	(24,424)		$	738,639		$	(3,686)	$	734,953
Repurchase of Class A common stock	(611,525)		—				—			(17,240)			—			—			(17,240)			—		(17,240)
Treasury stock retired	—		(61)				(17,179)			17,240			—			—			—			—		—
Restricted stock issued	37,938		4				(4)			—			—			—			—			—		—
Restricted stock forfeited	(28,586)		(3)				3			—			—			—			—			—		—
Restricted stock units vested	10,955		1				(1)			—			—			—			—			—		—
Stock-based compensation expense	—		—				1,276			—			—			—			1,276			—		1,276
Net income attributable to Amerant Bancorp Inc.	—		—				—			—			8,424			—			8,424			—		8,424
Dividends paid	—		—				—			—			(3,049)			—			(3,049)			—		(3,049)
Transfer of subsidiary shares from noncontrolling interest	—		—				(1,867)			—			—			—			(1,867)			1,867		—
Net loss attributable to noncontrolling-interest shareholders	—		—				—			—			—			—			—			(72)		(72)
Other comprehensive loss	—		—				—			—			—			(26,535)			(26,535)			—		(26,535)
Balance at June 30, 2022	33,759,604		$	3,375			$	190,337		$	—		$	556,895		$	(50,959)		$	699,648		$	(1,891)	$	697,757

Amerant Bancorp Inc. [AMTB] Filings
10-Q	[2023-07-31]
10-Q	[2023-05-02]
10-K	[2023-03-01]
10-Q	[2022-10-28]
10-Q	[2022-07-29]
10-Q	[2022-04-29]
10-K	[2022-03-04]
10-Q	[2021-10-29]
10-Q	[2021-07-30]
10-Q	[2021-05-07]
10-K	[2021-03-19]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-05-08]
10-K	[2020-03-16]
10-Q	[2019-11-12]
10-Q	[2019-08-12]
10-Q	[2019-05-10]
10-K	[2019-04-01]
10-Q	[2018-11-13]
S-1	[2018-10-05]
10-Q	[2018-09-21]