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

Continued Improvement in All Key Performance Metrics Over Prior Quarters

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

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

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

Summary Results

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

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

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

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

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

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

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

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

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

Credit Quality

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

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

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

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

Loans and Deposits

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

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

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

Net Interest Income and Net Interest Margin

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

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

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

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

Noninterest income

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

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

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

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

Noninterest expense

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

Noninterest expense in the third quarter of 2021, increased $2.9 million, or 6.4% compared to $45.5 million in the third quarter of 2020. This increase was primarily driven by higher salaries and employee benefits due to increased variable compensation resulting from (i) the new long term incentive program which was launched in February 2021, and (ii) adjustments to the Company’s non-equity variable compensation program in 2021, at expected performance levels, after having curtailed it in 2020 due to the COVID-19 pandemic. Higher salaries and employee benefits expenses in connection with new hires, primarily in the mortgage banking business, also contributed to the increase in noninterest expense. Additionally, there were higher professional and other services fees, primarily in connection with the onboarding of the new firm as a result of outsourcing of the Company’s internal audit function, as well as other professional fees, increased rent expense due to the leasing of the Beacon operation center (previously owned) in the third quarter of 2021 and higher telecommunication and data processing expenses compared to the third quarter of 2020. Partially offsetting the increase in noninterest expense were lower severance costs and consulting fees during the third quarter of 2021 compared to the third quarter of 2020. Year-to-date, the mortgage business has recorded $3.7 million in noninterest expenses, from which $3.1 million are related to salaries and employee benefits expenses, $0.3 million to professional fees, and the balance to other noninterest expenses.

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

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

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

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

Capital Resources and Liquidity

The Company’s capital continues to be strong and well in excess of the minimum regulatory requirements to be considered “well-capitalized” at September 30, 2021.

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

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

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

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

Third Quarter 2021 Earnings Conference Call

As previously announced, the Company will hold an earnings conference call on Thursday, October 21, 2021 at 9:00 a.m. (Eastern Time) to discuss its third quarter 2021 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the company’s website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link.

About Amerant Bancorp Inc. (NASDAQ: AMTB and AMTBB)

Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S., as well as select international clients, with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the second largest community bank headquartered in Florida. As of September 30, 2021, the Bank operated 25 banking centers – 18 in South Florida and 7 in Houston, Texas. For more information, visit investor.amerantbank.com.

Alloy is used with permission.

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

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements regarding the proposed Merger, the Class A Repurchase Program and the Company’s ability to obtain shareholder approval for the Merger, as well as statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “goals,” “outlooks,” “modeled,” “dedicated,” “create,” and other similar words and expressions of the future.

Forward-looking statements, including those as to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2020, in our quarterly report on Form 10-Q for the quarter ended June 30, 2021 and in our other filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website www.sec.gov.

Interim Financial Information

Unaudited financial information as of and for interim periods, including as of and for the three and nine months ended September 30, 2021 and 2020, may not reflect our results of operations for our fiscal year ending, or financial condition as of December 31, 2021, or any other period of time or date.

Non-GAAP Financial Measures

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

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

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

Exhibit 1- Selected Financial Information

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

(in thousands)	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
Consolidated Balance Sheets
Total assets	$	7,489,305		$	7,532,844		$	7,751,098		$	7,770,893		$	7,977,047
Total investments	1,422,738			1,359,240			1,375,292			1,372,567			1,468,796
Total gross loans (1)	5,478,924			5,608,548			5,754,838			5,842,337			5,924,617
Allowance for loan losses	83,442			104,185			110,940			110,902			116,819
Total deposits	5,626,377			5,674,908			5,678,079			5,731,643			5,877,546
Core deposits (2)	4,183,587			4,041,867			3,795,949			3,690,081			3,623,647
Advances from the FHLB and other borrowings	809,095			808,614			1,050,000			1,050,000			1,050,000
Senior notes	58,815			58,736			58,656			58,577			58,498
Junior subordinated debentures	64,178			64,178			64,178			64,178			64,178
Stockholders' equity (3)	812,662			799,068			785,014			783,421			829,533
Assets under management and custody (4)	2,188,317			2,132,516			2,018,870			1,972,321			1,762,803

	Three Months Ended																						Nine Months Ended September 30,
(in thousands, except percentages and per share amounts)	September 30, 2021					June 30, 2021					March 31, 2021				December 31, 2020				September 30, 2020				2021					2020
Consolidated Results of Operations
Net interest income	$	51,821				$	49,971				$	47,569			$	48,652			$	45,348			$	149,361				$	140,900
(Reversal of) provision for loan losses	(5,000		)			(5,000		)			—				—				18,000				(10,000		)			88,620
Noninterest income	13,434					15,734					14,163				11,515				20,292				43,331					61,955
Noninterest expense	48,404					51,125					43,625				51,629				45,500				143,154					127,107
Net income (loss) attributable to Amerant Bancorp Inc. (5)	17,031					15,962					14,459				8,473				1,702				47,452					(10,195		)
Effective income tax rate	24.96			%		22.65			%		20.15		%		0.76		%		20.47		%		22.74			%		20.80			%
Common Share Data
Stockholders' book value per common share	$	21.68				$	21.27				$	20.70			$	20.70			$	19.68			$	21.68				$	19.68
Tangible stockholders' equity (book value) per common share (6)	$	21.08				$	20.67				$	20.13			$	20.13			$	19.17			$	21.08				$	19.17
Basic earnings (loss) per common share	$	0.46				$	0.43				$	0.38			$	0.21			$	0.04			$	1.27				$	(0.24	)
Diluted earnings (loss) per common share (7)	$	0.45				$	0.42				$	0.38			$	0.20			$	0.04			$	1.26				$	(0.24	)
Basic weighted average shares outstanding	37,134					37,330					37,618				41,326				41,722				37,359					41,875
Diluted weighted average shares outstanding (7)	37,518					37,693					37,846				41,688				42,065				37,684					41,875

	Three Months Ended																				Nine Months Ended September 30,
	September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				2021				2020
Other Financial and Operating Data (8)
Profitability Indicators (%)
Net interest income / Average total interest earning assets (NIM) (9)	2.94	%			2.81	%			2.66	%			2.61	%			2.39	%			2.81	%			2.49		%
Net income (loss) / Average total assets (ROA) (10)	0.90	%			0.83	%			0.76	%			0.42	%			0.08	%			0.83	%			(0.17	)	%
Net income (loss) / Average stockholders' equity (ROE) (11)	8.38	%			8.11	%			7.47	%			4.09	%			0.81	%			8.01	%			(1.62	)	%
Noninterest income / Total revenue (12)	20.59		%		23.95		%		22.94		%		19.14		%		30.91		%		22.49		%		30.54		%
Capital Indicators (%)
Total capital ratio (13)	14.53	%			14.17	%			14.12	%			13.96	%			14.56	%			14.53	%			14.56		%
Tier 1 capital ratio (14)	13.28	%			12.92	%			12.87	%			12.71	%			13.30	%			13.28	%			13.30		%
Tier 1 leverage ratio (15)	11.18	%			10.75		%		10.54	%			10.11	%			10.52	%			11.18	%			10.52		%
Common equity tier 1 capital ratio (CET1) (16)	12.31	%			11.95	%			11.90	%			11.73	%			12.34	%			12.31	%			12.34		%
Tangible common equity ratio (17)	10.58	%			10.35	%			9.88	%			9.83	%			10.16	%			10.58	%			10.16		%
Asset Quality Indicators (%)
Non-performing assets / Total assets (18)	1.24	%			1.61	%			1.16	%			1.13	%			1.08	%			1.24	%			1.08		%
Non-performing loans / Total loans (1) (19)	1.51	%			2.16	%			1.56	%			1.50	%			1.46	%			1.51	%			1.46		%
Allowance for loan losses / Total non-performing loans	100.84	%			86.02	%			123.92	%			126.46	%			135.09	%			100.84	%			135.09		%
Allowance for loan losses / Total loans held for investment (1)	1.59	%			1.86	%			1.93	%			1.90	%			1.97	%			1.59	%			1.97		%
Net charge-offs / Average total loans held for investment (20)	1.16	%			0.12	%			—	%			0.40	%			1.41	%			0.42	%			0.56		%
Efficiency Indicators (% except FTE)
Noninterest expense / Average total assets	2.55	%			2.67	%			2.28	%			2.59	%			2.24	%			2.50	%			2.11		%
Salaries and employee benefits / Average total assets	1.53	%			1.61	%			1.38	%			1.62	%			1.39	%			1.51	%			1.31		%
Other operating expenses/ Average total assets (21)	1.02	%			1.06	%			0.90	%			0.97	%			0.85	%			0.99	%			0.79		%
Efficiency ratio (22)	74.18	%			77.80	%			70.67	%			85.81	%			69.32	%			74.29	%			62.66		%
Full-Time-Equivalent Employees (FTEs) (23)	733				719				731				713				807				733				807

	Three Months Ended																					Nine Months Ended September 30,
(in thousands, except percentages and per share amounts)	September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020					2021				2020
Core Selected Consolidated Results of Operations and Other Data (6)
Pre-provision net revenue (PPNR)	$	17,485			$	15,397			$	18,107			$	8,538			$	20,140				$	50,989			$	75,748
Core pre-provision net revenue (Core PPNR)	$	18,297			$	16,934			$	15,765			$	17,641			$	13,387				$	50,996			$	53,382
Core net income (loss)	$	17,669			$	17,199			$	12,589			$	20,917			$	(3,638	)			$	47,457			$	(27,909	)
Core basic earnings (loss) per common share	0.48				0.46				0.33				0.50				(0.09		)			1.27				(0.67		)
Core earnings (loss) per diluted common share (7)	0.47				0.46				0.33				0.50				(0.09		)			1.26				(0.67		)
Core net income (loss) / Average total assets (Core ROA) (10)	0.93		%		0.90		%		0.66		%		1.05		%		(0.18		)	%		0.83		%		(0.46		)	%
Core net income (loss) / Average stockholders' equity (Core ROE) (11)	8.69		%		8.74		%		6.50		%		10.08		%		(1.74		)	%		8.01		%		(4.42		)	%
Core efficiency ratio (24)	72.95		%		74.45		%		73.35		%		71.02		%		76.53			%		73.58		%		69.84			%

__________________

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

Exhibit 2- Non-GAAP Financial Measures Reconciliation

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

	Three Months Ended,																					Nine Months Ended September 30,
(in thousands)	September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020					2021				2020
Net income (loss) attributable to Amerant Bancorp Inc.	$	17,031			$	15,962			$	14,459			$	8,473			$	1,702				$	47,452			$	(10,195	)
Plus: (reversal of) provision for loan losses	(5,000		)		(5,000		)		—				—				18,000					(10,000		)		88,620
Plus: provision for income tax expense (benefit)	5,454				4,435				3,648				65				438					13,537				(2,677		)
Pre-provision net revenue (PPNR)	17,485				15,397				18,107				8,538				20,140					50,989				75,748
Plus: restructuring costs before income tax effect	758				4,164				240				8,407				1,846					5,162				3,518
Less: non-routine noninterest income items	54				(2,627		)		(2,582		)		696				(8,599		)			(5,155		)		(25,884		)
Core pre-provision net revenue	$	18,297			$	16,934			$	15,765			$	17,641			$	13,387				$	50,996			$	53,382
Total noninterest income	$	13,434			$	15,734			$	14,163			$	11,515			$	20,292				$	43,331			$	61,955
Less: Non-routine noninterest income items:
Loss on sale of the Beacon operations center (1)	—				—				—				(1,729		)		—					—				—
Securities (loss) gains, net	(54		)		1,329				2,582				1,033				8,599					3,857				25,957
Loss on early extinguishment of FHLB advances, net	—				(2,488		)		—				—				—					(2,488		)		(73		)
Gain on sale of loans	—				3,786				—				—				—					3,786				—
Total non-routine noninterest income items	$	(54	)		$	2,627			$	2,582			$	(696	)		$	8,599				$	5,155			$	25,884
Core noninterest income	$	13,488			$	13,107			$	11,581			$	12,211			$	11,693				$	38,176			$	36,071
Total noninterest expenses	$	48,404			$	51,125			$	43,625			$	51,629			$	45,500				$	143,154			$	127,107
Less: restructuring costs (2):
Staff reduction costs (3)	250				3,322				6				5,345				646					3,578				1,060
Legal and Consulting fees	412				—				—				—				—					412				—
Digital transformation expenses	96				32				234				658				1,200					362				2,458
Lease impairment charge	—				810				—				—				—					810				—
Branch closure expenses	—				—				—				2,404				—					—				—
Total restructuring costs	$	758			$	4,164			$	240			$	8,407			$	1,846				$	5,162			$	3,518
Core noninterest expenses	$	47,646			$	46,961			$	43,385			$	43,222			$	43,654				$	137,992			$	123,589
(in thousands, except percentages and per share amounts)	September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020					2021				2020
Net income (loss) attributable to Amerant Bancorp Inc.	$	17,031			$	15,962			$	14,459			$	8,473			$	1,702				$	47,452			$	(10,195	)
Plus after-tax restructuring costs:
Restructuring costs before income tax effect	758				4,164				240				8,407				1,846					5,162				3,518
Income tax effect (4)	(229		)		(897		)		(48		)		(6,455		)		(385		)			(1,174		)		(732		)
Total after-tax restructuring costs	529				3,267				192				1,952				1,461					3,988				2,786
Less before-tax non-routine items in noninterest income:	54				(2,627		)		(2,582		)		696				(8,599		)			(5,155		)		(25,884		)
Income tax effect (4)	55				597				520				9,796				1,798					1,172				5,384
Total after-tax non-routine items in noninterest income	109				(2,030		)		(2,062		)		10,492				(6,801		)			(3,983		)		(20,500		)
Core net income (loss)	$	17,669			$	17,199			$	12,589			$	20,917			$	(3,638	)			$	47,457			$	(27,909	)
Basic earnings (loss) per share	$	0.46			$	0.43			$	0.38			$	0.21			$	0.04				$	1.27			$	(0.24	)
Plus: after tax impact of restructuring costs	0.02				0.09				0.01				0.04				0.04					0.11				0.06
Less: after tax impact of non-routine items in noninterest income	—				(0.06		)		(0.06		)		0.25				(0.17		)			(0.11		)		(0.49		)
Total core basic earnings (loss) per common share	$	0.48			$	0.46			$	0.33			$	0.50			$	(0.09	)			$	1.27			$	(0.67	)
Diluted earnings (loss) per share (5)	$	0.45			$	0.42			$	0.38			$	0.20			$	0.04				$	1.26			$	(0.24	)
Plus: after tax impact of restructuring costs	0.02				0.09				0.01				0.05				0.04					0.11				0.06
Less: after tax impact of non-routine items in noninterest income	—				(0.05		)		(0.06		)		0.25				(0.17		)			(0.11		)		(0.49		)
Total core diluted earnings (loss) per common share	$	0.47			$	0.46			$	0.33			$	0.50			$	(0.09	)			$	1.26			$	(0.67	)
Net income (loss) / Average total assets (ROA)	0.90			%	0.83			%	0.76			%	0.42			%	0.08			%		0.83			%	(0.17		)	%
Plus: after tax impact of restructuring costs	0.02			%	0.17			%	0.01			%	0.11			%	0.08			%		0.07			%	0.05			%
Less: after tax impact of non-routine items in noninterest income	0.01			%	(0.10		)	%	(0.11		)	%	0.52			%	(0.34		)	%		(0.07		)	%	(0.34		)	%
Core net income (loss) / Average total assets (Core ROA)	0.93			%	0.90			%	0.66			%	1.05			%	(0.18		)	%		0.83			%	(0.46		)	%
Net income (loss) / Average stockholders' equity (ROE)	8.38			%	8.11			%	7.47			%	4.09			%	0.81			%		8.01			%	(1.62		)	%
Plus: after tax impact of restructuring costs	0.26			%	1.66			%	0.10			%	0.94			%	0.70			%		0.67			%	0.45			%
Less: after tax impact of non-routine items in noninterest income	0.05			%	(1.03		)	%	(1.07		)	%	5.05			%	(3.25		)	%		(0.67		)	%	(3.25		)	%
Core net income (loss) / Average stockholders' equity (Core ROE)	8.69			%	8.74			%	6.50			%	10.08			%	(1.74		)	%		8.01			%	(4.42		)	%
Efficiency ratio	74.18			%	77.81			%	70.67			%	85.81			%	69.32			%		74.29			%	62.66			%
Less: impact of restructuring costs	(1.16		)	%	(6.34		)	%	(0.39		)	%	(13.97		)	%	(2.81		)	%		(2.68		)	%	(1.74		)	%
Plus: impact of non-routine items in noninterest income	(0.07		)	%	2.98			%	3.07			%	(0.82		)	%	10.02			%		1.97			%	8.92			%
Core efficiency ratio	72.95			%	74.45			%	73.35			%	71.02			%	76.53			%		73.58			%	69.84			%

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