Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Amerant Reports Third Quarter 2023 Results By: Amerant Bancorp Inc. via GlobeNewswire October 19, 2023 at 16:45 PM EDT CORAL GABLES, Fla., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Amerant Bancorp Inc. (NYSE: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $22.1 million in the third quarter of 2023, or $0.66 per diluted share, compared to net income attributable to the Company of $7.3 million, or $0.22 per diluted share, in the second quarter of 2023. “We are pleased to report significantly improved operating results this quarter,” stated Jerry Plush, Chairman and CEO. “Our team members continued to focus on “deposits first” as the top strategic priority, and by originating strong organic deposit growth again this quarter, that enabled us to further reduce higher cost institutional deposits. In the fourth quarter, we look forward to completing the long-awaited systems conversion and then being able to fully focus our efforts on business development and customer service.” Total assets were $9.3 billion, a decrease of $173.8 million, or 1.8%, compared to 2Q23. Total gross loans were $7.14 billion, a decrease of $74.4 million, or 1.0%, compared to $7.22 billion in 2Q23. Total gross loans includes $69.2 million in held for sale loans out of which $43.3 million are related to a NYC commercial real estate loan transferred in 3Q23 from loans held for investment at the lower of its estimated fair value or cost, and mortgage loans at their estimated fair value totaling $26.0 million.Cash and cash equivalents were $309.0 million, down $136.1 million, or 30.6%, compared to $445.1 million in 2Q23.Total deposits were $7.55 billion, down $32.7 million, or 0.4%, compared to $7.58 billion in 2Q23. Organic deposit growth was $208 million, which helped enable reductions in higher-cost institutional deposits of $292 million. Time deposits increased $221.3 million as customers continued to seek higher returns on deposits. This includes an increase in brokered time deposits in the amount of $92.4 million, a strategic move to obtain 2 to 5 year funding, as part of asset/liability management.Total advances from Federal Home Loan Bank (“FHLB”) were $595.0 million, down $175.0 million, or 22.7%, compared to $770.0 million in 2Q23, the result of early repayment of $225.0 million during the quarter. The Bank had an additional $2.3 billion in availability from the FHLB as of September 30, 2023.Average yield on loans decreased to 6.77% in 3Q23, compared to 6.79% in 2Q23.Total non-performing assets decreased to $53.4 million, down $14.0 million, or 20.8%, compared to $67.4 million as of 2Q23.The allowance for credit losses ("ACL") was $98.8 million, a decrease of $7.2 million, or 6.8%, compared to $106.0 million as of 2Q23.Core deposits were $5.24 billion, down $254.0 million, or 4.6%, compared to $5.50 billion in 2Q23. Non-interest bearing deposits increased $76.6 million, or 5.9%, to $1.37 billion in 3Q23 compared to $1.29 billion in 2Q23. Average cost of total deposits increased to 2.66% in 3Q23 compared to 2.40% in 2Q23. Loan to deposit ratio improved to 94.64% in 3Q23 compared to 95.22% in 2Q23.Assets Under Management and custody (“AUM”) totaled $2.09 billion, down $55.3 million, or 2.6%, from $2.15 billion in 2Q23.Pre-provision net revenue (“PPNR”)(1) was $36.5 million in 3Q23, a decrease of $1.8 million or 4.7%, compared to $38.3 million in 2Q23.Net Interest Margin (“NIM”) was 3.57% in 3Q23 compared to 3.83% in 2Q23.Net Interest Income (“NII”) was $78.6 million, down $5.3 million, or 6.3%, from $83.9 million in 2Q23. Provision for credit losses was $8.0 million in 3Q23, down $21.1 million, or 72.5%, compared to $29.1 million in 2Q23. The provision for credit losses in 3Q23 was comprised of $7.6 million to cover charge-offs, $1.4 million due to loan composition and volume changes and $0.6 million added to the provision for credit contingencies, which is recorded in other liabilities. These provision requirements were offset by a $0.4 million release due to credit quality and factor updates and a $1.2 million release due to recoveries.Non-interest income was $21.9 million in 3Q23, down $4.7 million, or 17.6%, from $26.6 million in 2Q23. 3Q23 included $6.9 million in non-routine net gains compared to $12.4 million in 2Q23.Non-interest expense was $64.4 million, down $8.1 million, or 11.1%, from $72.5 million in 2Q23. 3Q23 included $6.3 million in non-routine non-interest expenses compared to $13.4 million in 2Q23. The efficiency ratio was 64.1% in 3Q23 compared to 65.6% in 2Q23.Return on average assets (“ROA”) was 0.92% in 3Q23 compared to 0.31% in 2Q23.Return on average equity (“ROE”) was 11.93% in 3Q23 compared to 3.92% in 2Q23. Repurchased 142,888 shares for $2.7 million during 3Q23. As of September 30, 2023, repurchases totaled 259,853 shares for $4.9 million; $20 million remains available of $25 million Class A common stock share repurchase program. Additional details on third quarter 2023 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. On October 18, 2023, the Company’s board of directors declared a quarterly cash dividend of $0.09 per common share. The dividend is payable on November 30, 2023 to shareholders of record on November 14, 2023. 1 Non-GAAP measure, see “Non-GAAP Financial Measures” for more information and Exhibit 2 for a reconciliation to GAAP measures. Third Quarter 2023 Earnings Conference Call The Company will hold an earnings conference call on Friday, October 20, 2023 at 9:00 a.m. (Eastern Time) to discuss its third quarter 2023 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the Company’s website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link. About Amerant Bancorp Inc. (NYSE: AMTB) Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S. with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the largest community bank headquartered in Florida. The Bank operates 23 banking centers – 17 in South Florida and 6 in the Houston, Texas area, as well as an LPO in Tampa, Florida. For more information, visit investor.amerantbank.com. FIS® and any associated brand names/logos are the trademarks of FIS and/or its affiliates. Cautionary Notice Regarding Forward-Looking Statements This press release contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “goals,” “outlooks,” “modeled,” “dedicated,” “create,” and other similar words and expressions of the future. Forward-looking statements, including those relating to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2022 filed on March 1, 2023 (the “Form 10-K”), our quarterly report on Form 10-Q for the quarter ended March 31, 2023 filed on May 2, 2023, 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 and nine month periods ended September 30, 2023 and 2022, may not reflect our results of operations for our fiscal year ending, or financial condition, as of December 31, 2023, or any other period of time or date. As previously disclosed in the Form 10-K, the Company adopted the new guidance on accounting for current expected credit losses on financial instruments (“CECL”) effective as of January 1, 2022. Quarterly amounts previously reported on our quarterly reports on Form 10-Q for the periods ended March 31, 2022, June 30, 2022 and September 30, 2022 do not reflect the adoption of CECL. In the fourth quarter of 2022, the Company recorded a provision for credit losses totaling $20.9 million, including $11.1 million related to the retroactive effect of adopting CECL for all previous quarterly periods in the year ended December 31, 2022, including loan growth and changes to macro-economic conditions during the period. Quarterly amounts included in the Form 10-K and this earnings release and accompanying presentation reflect the impacts of the adoption of CECL on each interim period of 2022. See the Form 10-K for more details on the adoption of CECL. The following table shows changes to previously-reported amounts for the quarter ended December 31, 2022 versus the corresponding amounts reflecting the adoption of CECL in 2022: (in thousands, except per share amounts)As Reported As Recast ChangesTotal interest income$113,374 $113,374 $— Total interest expense 31,196 31,196 — Net interest income 82,178 82,178 — Provision for credit losses 20,945 16,857 (4,088)Net interest income after provision for credit losses 61,233 65,321 4,088 Total noninterest income 24,365 24,365 — Total noninterest expense 62,241 62,241 — Income before income taxes 23,357 27,445 4,088 Income tax expense (4,746) (5,627) (881)Net income before attribution of noncontrolling interest 18,611 21,818 3,207 Noncontrolling interest (155) (155) — Net income attributable to Amerant Bancorp Inc.$18,766 $21,973 $3,207 Basic earnings per common share$0.56 $0.66 $0.10 Diluted earnings per common share$0.55 $0.65 $0.10 Cash dividends declared per common share$0.09 $0.09 $— Non-GAAP Financial Measures The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with non-GAAP financial measures, such as “pre-provision net revenue (PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core noninterest income”, “core noninterest expenses”, “core net income”, “core earnings per share (basic and diluted)”, “core return on assets (Core ROA)”, “core return on equity (Core ROE)”, “core efficiency ratio”, “tangible stockholders’ equity (book value) per common share”, “tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity”, and “tangible stockholders' equity (book value) per common share, adjusted for unrealized losses on debt securities held to maturity”. This supplemental information is not required by, or is not presented in accordance with GAAP. The Company refers to these financial measures and ratios as “non-GAAP financial measures” and they should not be considered in isolation or as a substitute for the GAAP measures presented herein. We use certain non-GAAP financial measures, including those mentioned above, both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our past performance and prospects for future performance, especially in light of the additional costs we have incurred in connection with the Company’s restructuring activities that began in 2018 and continued in 2023, including the effect of non-core banking activities such as the sale of loans and securities and other repossessed assets, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments, and other non-routine actions intended to improve customer service and operating performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies. Exhibit 2 reconciles these non-GAAP financial measures to GAAP reported results. Exhibit 1- Selected Financial Information The following table sets forth selected financial information derived from our interim unaudited and annual audited consolidated financial statements. (in thousands)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Consolidated Balance Sheets (audited)Total assets$9,345,700 $9,519,526 $9,495,302 $9,127,804Total investments 1,314,367 1,315,303 1,347,697 1,366,680Total gross loans (1) 7,142,596 7,216,958 7,115,035 6,919,632Allowance for credit losses 98,773 105,956 84,361 83,500Total deposits 7,546,912 7,579,571 7,286,726 7,044,199Core deposits (2) 5,244,034 5,498,017 5,357,386 5,315,944Advances from the Federal Home Loan Bank 595,000 770,000 1,052,012 906,486Senior notes 59,447 59,368 59,289 59,210Subordinated notes 29,412 29,369 29,326 29,284Junior subordinated debentures 64,178 64,178 64,178 64,178Stockholders' equity (3)(4) 719,787 720,956 729,056 705,726Assets under management and custody (5) 2,092,200 2,147,465 2,107,603 1,995,666 Three Months Ended(in thousands, except percentages, share data and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Consolidated Results of Operations Net interest income$78,577 $83,877 $82,333 $82,178 Provision for credit losses (6)(7) 8,000 29,077 11,700 16,857 Noninterest income 21,921 26,619 19,343 24,365 Noninterest expense 64,420 72,500 64,733 62,241 Net income attributable to Amerant Bancorp Inc. (6) (8) 22,119 7,308 20,186 21,973 Effective income tax rate (6) 22.57% 21.00% 21.00% 20.50% Common Share Data Stockholders' book value per common share$21.43 $21.37 $21.56 $20.87 Tangible stockholders' equity (book value) per common share (9)$20.63 $20.66 $20.84 $20.19 Tangible stockholders' equity (book value) per common share, adjusted for unrealized losses on debt securities held to maturity (9)$19.86 $20.11 $20.38 $19.65 Basic earnings per common share (6)$0.66 $0.22 $0.60 $0.66 Diluted earnings per common share (6)(10)$0.66 $0.22 $0.60 $0.65 Basic weighted average shares outstanding 33,489,560 33,564,770 33,559,718 33,496,096 Diluted weighted average shares outstanding (10) 33,696,620 33,717,702 33,855,994 33,813,593 Cash dividend declared per common share (4)$0.09 $0.09 $0.09 $0.09 Three Months Ended September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Other Financial and Operating Data (11) Profitability Indicators (%) Net interest income / Average total interest earning assets (NIM) (12)3.57% 3.83% 3.90% 3.96% Net income / Average total assets (ROA) (6) (13)0.92% 0.31% 0.88% 0.97% Net income / Average stockholders' equity (ROE) (6)(14)11.93% 3.92% 11.15% 12.10% Noninterest income / Total revenue (15)21.81% 24.09% 19.02% 22.87% Capital Indicators (%) Total capital ratio (16)12.70% 12.39% 12.36% 12.39% Tier 1 capital ratio (17)11.08% 10.77% 10.88% 10.89% Tier 1 leverage ratio (18)9.05% 8.91% 9.04% 9.18% Common equity tier 1 capital ratio (CET1) (19)10.30% 10.00% 10.10% 10.10% Tangible common equity ratio (20)7.44% 7.34% 7.44% 7.50% Tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity (21)7.18% 7.16% 7.29% 7.31% Liquidity Ratios (%) Loans to Deposits (22)94.64% 95.22% 97.64% 98.23% Asset Quality Indicators (%) Non-performing assets / Total assets (23)0.57% 0.71% 0.51% 0.41% Non-performing loans / Total gross loans (1) (24)0.46% 0.65% 0.31% 0.54% Allowance for credit losses / Total non-performing loans (24)297.55% 224.51% 380.31% 222.08% Allowance for credit losses / Total loans held for investment1.40% 1.48% 1.20% 1.22% Net charge-offs / Average total loans held for investment (25)0.82% 0.42% 0.64% 0.59% Efficiency Indicators (% except FTE) Noninterest expense / Average total assets2.69% 3.06% 2.82% 2.75% Salaries and employee benefits / Average total assets1.31% 1.45% 1.52% 1.45% Other operating expenses/ Average total assets (26)1.38% 1.62% 1.30% 1.30% Efficiency ratio (27)64.10% 65.61% 63.67% 58.42% Full-Time-Equivalent Employees (FTEs) (28)700 710 722 692 Three Months Ended(in thousands, except percentages and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Core Selected Consolidated Results of Operations and Other Data (9) Pre-provision net revenue (PPNR)$36,456 $38,258 $37,187 $44,457 Core pre-provision net revenue (Core PPNR)$35,880 $39,196 $37,103 $37,838 Core net income (6)$21,664 $8,048 $20,120 $16,817 Core basic earnings per common share (6) 0.65 0.24 0.60 0.50 Core earnings per diluted common share (6) (10) 0.64 0.24 0.59 0.50 Core net income / Average total assets (Core ROA) (6) (13) 0.91% 0.34% 0.88% 0.74% Core net income / Average stockholders' equity (Core ROE) (6) (14) 11.69% 4.32% 11.11% 9.26% Core efficiency ratio (29) 62.08% 60.29% 62.47% 61.34% __________________(1)Total gross loans include loans held for investment net of unamortized deferred loan origination fees and costs, as well as loans held for sale. As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, mortgage loans held for sale carried at fair value totaled $26.0 million, $49.9 million, $65.3 million and $62.4 million, respectively. In addition, as of September 30, 2023, includes $43.3 million in loans held for sale carried at the lower of estimated fair value or cost.(2)Core deposits consist of total deposits excluding all time deposits.(3)In the fourth quarter of 2022, the Company announced that the Board of Directors authorized a new repurchase program pursuant to which the Company may purchase, from time to time, up to an aggregate amount of $25 million of its shares of Class A common stock (the “2023 Class A Common Stock Repurchase Program”). In the third, second and first quarters of 2023, the Company repurchased an aggregate of 142,188 shares of Class A common stock, 95,262 shares of Class A common stock and 22,403 shares of Class A common stock, respectively, at a weighted average price of $19.05 per share, $17.42 per share and $25.25 per share, respectively, under the 2023 Class A Common Stock Repurchase Program. In the third, second and first quarters of 2023, the aggregate purchase price for these transactions was approximately $2.7 million, $1.7 million and $0.6 million, respectively, including transaction costs.(4)For each of the third, second and first quarters of 2023 and the fourth quarter of 2022, the Company’s Board of Directors declared cash dividends of $0.09 per share of the Company’s common stock and paid an aggregate amount of $3.0 million per quarter in connection with these dividends. The dividend declared in the third quarter of 2023 was paid on August 31, 2023 to shareholders of record at the close of business on August 15, 2023. The dividend declared in the second quarter of 2023 was paid on May 31, 2023 to shareholders of record at the close of business on May 15, 2023. The dividend declared in the first quarter of 2023 was paid on February 28, 2023 to shareholders of record at the close of business on February 13, 2023. The dividend declared in the fourth quarter of 2022 was paid on November 30, 2022 to shareholders of record at the close of business on November 15, 2022.(5)Assets held for clients in an agency or fiduciary capacity which are not assets of the Company and therefore are not included in the consolidated financial statements.(6)As previously disclosed, the Company adopted CECL in the fourth quarter of 2022, effective as of January 1, 2022. See Form 10-K for more details on the CECL adoption and related effects to quarterly results for each quarter in the year ended December 31, 2022.(7)In the third quarter of 2023, includes $7.4 million and $0.6 million of provision for credit losses on loans and unfunded commitments (contingencies), respectively. For all other periods shown, includes provision for credit losses on loans. There was no provision for credit losses on unfunded commitments in the second quarter of 2023 and the fourth quarter of 2022. In the first quarter of 2023, the provision for credit losses on unfunded commitments was $0.3 million.(8)In the three months ended September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, net income excludes losses of $0.4 million, $0.3 million, $0.2 million and $0.2 million, respectively, attributable to a minority interest in Amerant Mortgage LLC.(9)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.(10)In all the periods shown, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. Potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in all the periods shown, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.(11)Operating data for the periods presented have been annualized.(12)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.(13)Calculated based upon the average daily balance of total assets.(14)Calculated based upon the average daily balance of stockholders’ equity.(15)Total revenue is the result of net interest income before provision for credit losses plus noninterest income.(16)Total stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.(17)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.(18)Tier 1 capital divided by quarter to date average assets.(19)CET1 capital divided by total risk-weighted assets.(20)Tangible common equity is calculated as the ratio of common equity less goodwill and other intangibles divided by total assetsless 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.(21)Calculated in the same manner described in footnote 19 but also includes unrealized losses on debt securities held to maturity in the balance of common equity and total assets.(22)Calculated as the ratio of total loans gross divided by total deposits.(23)Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans and other real estate owned (“OREO”) properties acquired through or in lieu of foreclosure, and other repossessed assets.(24)Non-performing loans include all accruing loans past due by 90 days or more and all nonaccrual loans(25)Calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for credit losses. During the third, second and first quarters of 2023, and in the fourth quarter of 2022, there were net charge offs of $14.6 million, $7.5 million , $10.8 million, and $9.8 million, respectively. During the third quarter of 2023, the Company charged-off $6.4 million related to multiple consumer loans, primarily purchased indirect consumer loans, and $9.3 million related to multiple commercial loans. During the second quarter of 2023, the Company charged-off $7.6 million related to multiple purchased indirect consumer loans and $1.5 million related to multiple commercial loans. During the first quarter of 2023, the Company charged-off $6.5 million in connection with a commercial loan relationship, $6.3 million related to multiple consumer loans and $1.5 million related to multiple commercial and real estate loans. During the fourth quarter of 2022, the Company charged-off $3.9 million related to a CRE loan, $5.5 million related to multiple consumer loans and $1.1 million related to multiple commercial loans.(26)Other operating expenses is the result of total noninterest expense less salary and employee benefits.(27)Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and NII.(28)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes 98, 93, 94 and 68 FTEs for Amerant Mortgage LLC, respectively.(29)Core efficiency ratio is the efficiency ratio less the effect of restructuring costs and other non-routine items, described in Exhibit 2 - Non-GAAP Financial Measures Reconciliation. Exhibit 2- Non-GAAP Financial Measures Reconciliation The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related to tax deductible restructuring costs, provision for (reversal of) credit losses, provision for income tax expense (benefit), the effect of non-core banking activities such as the sale of loans and securities and other repossessed assets, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments and other non-routine actions intended to improve customer service and operating performance. The Company believes these adjusted numbers are useful to understand the Company’s performance absent these transactions and events. Three Months Ended,(in thousands)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income attributable to Amerant Bancorp Inc. (1)$22,119 $7,308 $20,186 $21,973 Plus: provision for credit losses (1)(2) 8,000 29,077 11,700 16,857 Plus: provision for income tax expense (1) 6,337 1,873 5,301 5,627 Pre-provision net revenue (PPNR) 36,456 38,258 37,187 44,457 Plus: non-routine noninterest expense items 6,303 13,383 3,372 2,447 Less: non-routine noninterest income items (6,879) (12,445) (3,456) (9,066)Core pre-provision net revenue (Core PPNR)$35,880 $39,196 $37,103 $37,838 Total noninterest income$21,921 $26,619 $19,343 $24,365 Less: Non-routine noninterest income items: Derivatives (losses) gains, net (77) 242 14 1,040 Securities losses, net (54) (1,237) (9,731) (3,364)Gains on early extinguishment of FHLB advances, net 7,010 13,440 13,173 11,390 Total non-routine noninterest income items$6,879 $12,445 $3,456 $9,066 Core noninterest income$15,042 $14,174 $15,887 $15,299 Total noninterest expenses$64,420 $72,500 $64,733 $62,241 Less: non-routine noninterest expense items Restructuring costs (3): Staff reduction costs (4) 489 2,184 213 1,221 Contract termination costs (5) — 1,550 — — Consulting and other professional fees (6) — 2,060 2,690 1,226 Disposition of fixed assets (7) — 1,419 — — Branch closure expenses and related charges (8) 252 1,558 469 — Total restructuring costs$741 $8,771 $3,372 $2,447 Other non-routine noninterest expense items: Loans held for sale valuation expense (9) 5,562 — — — Loss on sale of repossessed assets (10) — 2,649 — — Impairment charge on investment carried at cost — 1,963 — — Total non-routine noninterest expense items$6,303 $13,383 $3,372 $2,447 Core noninterest expenses $58,117 $59,117 $61,361 $59,794 Three Months Ended, (in thousands, except percentages and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income attributable to Amerant Bancorp Inc. (1)$22,119 $7,308 $20,186 $21,973 Plus after-tax non-routine items in noninterest expense: Non-routine items in noninterest expense before income tax effect 6,303 13,383 3,372 2,447 Income tax effect (11) (1,486) (2,811) (708) (460)Total after-tax non-routine items in noninterest expense 4,817 10,572 2,664 1,987 Less after-tax non-routine items in noninterest income: Non-routine items in noninterest income before income tax effect (6,879) (12,445) (3,456) (9,066)Income tax effect (11) 1,607 2,613 726 1,923 Total after-tax non-routine items in noninterest income (5,272) (9,832) (2,730) (7,143)Core net income (1)$21,664 $8,048 $20,120 $16,817 Basic earnings per share (1)$0.66 $0.22 $0.60 $0.66 Plus: after tax impact of non-routine items in noninterest expense 0.14 0.31 0.08 0.06 Less: after tax impact of non-routine items in noninterest income (0.15) (0.29) (0.08) (0.22)Total core basic earnings per common share (1)$0.65 $0.24 $0.60 $0.50 Diluted earnings per share (1) (12)$0.66 $0.22 $0.60 $0.65 Plus: after tax impact of non-routine items in noninterest expense 0.14 0.31 0.08 0.06 Less: after tax impact of non-routine items in noninterest income (0.16) (0.29) (0.09) (0.21)Total core diluted earnings per common share (1)$0.64 $0.24 $0.59 $0.50 Net income / Average total assets (ROA) (1) 0.92% 0.31% 0.88% 0.97%Plus: after tax impact of non-routine items in noninterest expense 0.20% 0.45% 0.12% 0.09%Less: after tax impact of non-routine items in noninterest income(0.21)% (0.42)% (0.12)% (0.32)%Core net income / Average total assets (Core ROA) (1) 0.91% 0.34% 0.88% 0.74% Net income / Average stockholders' equity (ROE) (1) 11.93% 3.92% 11.15% 12.10%Plus: after tax impact of non-routine items in noninterest expense 2.60% 5.68% 1.47% 1.09%Less: after tax impact of non-routine items in noninterest income(2.84)% (5.28)% (1.51)% (3.93)%Core net income / Average stockholders' equity (Core ROE) (1) 11.69% 4.32% 11.11% 9.26% Efficiency ratio 64.10% 65.61% 63.67% 58.42%Less: impact of non-routine items in noninterest expense(6.27)% (12.11)% (3.32)% (2.30)%Plus: impact of non-routine items in noninterest income 4.25% 6.79% 2.12% 5.22%Core efficiency ratio 62.08% 60.29% 62.47% 61.34% Three Months Ended,(in thousands, except percentages, share data and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Stockholders' equity$719,787 $720,956 $729,056 $705,726 Less: goodwill and other intangibles (13) (26,818) (24,124) (24,292) (23,161)Tangible common stockholders' equity$692,969 $696,832 $704,764 $682,565 Total assets 9,345,700 9,519,526 9,495,302 9,127,804 Less: goodwill and other intangibles (13) (26,818) (24,124) (24,292) (23,161)Tangible assets$9,318,882 $9,495,402 $9,471,010 $9,104,643 Common shares outstanding 33,583,621 33,736,159 33,814,260 33,815,161 Tangible common equity ratio 7.44% 7.34% 7.44% 7.50%Stockholders' book value per common share$21.43 $21.37 $21.56 $20.87 Tangible stockholders' equity book value per common share$20.63 $20.66 $20.84 $20.19 Tangible common stockholders' equity$692,969 $696,832 $704,764 $682,565 Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (14) (26,138) (18,503) (15,542) (18,234)Tangible common stockholders' equity, adjusted for net unrealized accumulated losses on debt securities held to maturity$666,831 $678,329 $689,222 $664,331 Tangible assets$9,318,882 $9,495,402 $9,471,010 $9,104,643 Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (14) (26,138) (18,503) (15,542) (18,234)Tangible assets, adjusted for net unrealized accumulated losses on debt securities held to maturity$9,292,744 $9,476,899 $9,455,468 $9,086,409 Common shares outstanding 33,583,621 33,736,159 33,814,260 33,815,161 Tangible common equity ratio, adjusted for net unrealized accumulated losses on debt securities held to maturity 7.18% 7.16% 7.29% 7.31%Tangible stockholders' book value per common share, adjusted for net unrealized accumulated losses on debt securities held to maturity$19.86 $20.11 $20.38 $19.65 ____________(1)As previously disclosed, the Company adopted CECL in the fourth quarter of 2022, effective as of January 1, 2022. See Form 10-K for more details of the CECL adoption and related effects to quarterly results for each quarter in the year ended December 31, 2022.(2)In the third quarter of 2023, includes $7.4 million and $0.6 million of provision for credit losses on loans and unfunded commitments (contingencies), respectively. For all other periods shown, includes provision for credit losses on loans. There was no provision for credit losses on unfunded commitments in the second quarter of 2023 and the fourth quarter of 2022. In the first quarter of 2023, the provision for credit losses on unfunded commitments was $0.3 million.(3)Expenses incurred for actions designed to implement the Company’s business strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation of new technology system applications, decommissioning of legacy technologies, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities.(4)Staff reduction costs consist of severance expenses related to organizational rationalization.(5)Contract termination and related costs associated with third party vendors resulting from the Company’s engagement of FIS.(6)Includes expenses in connection with the engagement of FIS of $2.0 million, $2.6 million and $1.1 million in the three months ended June 30, 2023, March 31, 2023 and December 31, 2022, respectively.(7)Include expenses in connection with the disposition of fixed assets due to the write off of in-development software in the three months ended June 30, 2023.(8)In the three months ended September 30, 2023, consists of expenses in connection with the closure of a branch in Houston, Texas in 2023. In the three months ended June 30, 2023, consists of expenses associated with the closure of a branch in Miami, Florida in 2023, including $0.9 million of accelerated amortization of leasehold improvements and $0.6 million of right-of-use, or ROU asset impairment. In the three months ended March 31, 2023, includes $0.5 million of ROU asset impairment associated with the closure of a branch in Houston, Texas in 2023.(9)Fair value adjustment related to a New York-based CRE loan held for sale carried at the lower of fair value or cost.(10)In the three months ended June 30, 2023, amount represents the loss on sale of repossessed assets in connection with our equipment-financing activities.(11)In the three months ended March 31, 2023, amounts were calculated based upon the effective tax rate for the period of 21.00%. For all of the other periods shown, amounts represent the difference between the prior and current period year-to-date tax effect.(12)Potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. In all the periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect on per share earnings.(13)At September 30, 2023, other intangible assets primarily consist of naming rights and mortgage servicing rights (“MSRs”) of $2.7 million and $1.3 million, respectively. At June 30, 2023, March 31, 2023 and December 31, 2022, other intangible assets primarily consist of MSRs of $1.3 million, $1.4 million and $1.3 million, respectively. Other intangible assets are included in other assets in the Company’s consolidated balance sheets.(14)In the three months ended September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, amounts were calculated based upon the fair value on debt securities held to maturity, and assuming a tax rate of 25.51%, 25.46%, 25.53% and 25.55%, respectively. Exhibit 3 - Average Balance Sheet, Interest and Yield/Rate Analysis The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the periods presented. The average balances for loans include both performing and nonperforming balances. Interest income on loans includes the effects of discount accretion and the amortization of non-refundable loan origination fees, net of direct loan origination costs, accounted for as yield adjustments. Average balances represent the daily average balances for the periods presented. Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ Rates Average BalancesIncome/ExpenseYield/ RatesInterest-earning assets: Loan portfolio, net (1)(2)$7,048,891$120,2446.77% $7,068,034$119,5706.79% $6,021,294$76,7795.06%Debt securities available for sale (3) (4) 1,052,147 10,9244.12% 1,041,039 10,3974.01% 1,110,153 8,3792.99%Debt securities held to maturity (5) 232,146 1,9583.35% 236,297 1,9763.35% 235,916 1,9213.23%Debt securities held for trading 2,048 40.77% 262 34.59% 65 16.10%Equity securities with readily determinable fair value not held for trading 2,479 213.36% 27 ——% 12,018 ——%Federal Reserve Bank and FHLB stock 54,056 9617.05% 52,917 8576.50% 49,398 6054.86%Deposits with banks 344,015 5,2486.05% 379,123 5,6946.02% 258,237 1,4522.23%Other short-term investments 1,964 234.65% — ——% — ——%Total interest-earning assets 8,737,746 139,3836.33% 8,777,699 138,4976.33% 7,687,081 89,1374.60%Total non-interest-earning assets (6) 756,141 710,404 639,118 Total assets$9,493,887 $9,488,103 $8,326,199 Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ Rates Average BalancesIncome/ExpenseYield/ RatesInterest-bearing liabilities: Checking and saving accounts Interest bearing DDA$2,523,092 $16,6682.62% $2,641,746 $16,6782.53% $2,077,321 $4,9340.94%Money market 1,144,580 11,0133.82% 1,169,047 9,4013.23% 1,363,799 3,5551.03%Savings 280,096 320.05% 287,493 360.05% 320,861 540.07%Total checking and saving accounts 3,947,768 27,7132.79% 4,098,286 26,1152.56% 3,761,981 8,5430.90%Time deposits 2,201,138 22,4824.05% 2,045,747 18,5283.63% 1,247,084 4,7171.50%Total deposits 6,148,906 50,1953.24% 6,144,033 44,6432.91% 5,009,065 13,2601.05%Securities sold under agreements to repurchase 326 44.87% 60 16.68% — ——%Advances from the FHLB (7) 800,978 8,2074.07% 828,301 7,6213.69% 866,639 3,9771.82%Senior notes 59,409 9426.29% 59,330 9416.36% 59,092 9416.32%Subordinated notes 29,391 3614.87% 29,348 3624.95% 29,220 3624.92%Junior subordinated debentures 64,178 1,0976.78% 64,178 1,0526.57% 64,178 7004.33%Total interest-bearing liabilities 7,103,188 60,8063.40% 7,125,250 54,6203.07% 6,028,194 19,2401.27%Non-interest-bearing liabilities: Non-interest bearing demand deposits 1,335,041 1,332,189 1,316,988 Accounts payable, accrued liabilities and other liabilities 320,369 283,653 245,425 Total non-interest-bearing liabilities 1,655,410 1,615,842 1,562,413 Total liabilities 8,758,598 8,741,092 7,590,607 Stockholders’ equity 735,289 747,011 735,592 Total liabilities and stockholders' equity$9,493,887 $9,488,103 $8,326,199 Excess of average interest-earning assets over average interest-bearing liabilities$1,634,558 $1,652,449 $1,658,887 Net interest income $78,577 $83,877 $69,897 Net interest rate spread 2.93% 3.26% 3.33%Net interest margin (8) 3.57% 3.83% 3.61%Cost of total deposits (9) 2.66% 2.40% 0.83%Ratio of average interest-earning assets to average interest-bearing liabilities 123.01% 123.19% 127.52% Average non-performing loans/ Average total loans 0.56% 0.54% 0.42% Nine Months Ended September 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ RatesInterest-earning assets: Loan portfolio, net (1)(2)$7,006,633 $348,3156.65% $5,718,264 $194,6314.55%Debt securities available for sale (3)(4) 1,050,648 31,4944.01% 1,130,231 23,3712.76%Debt securities held to maturity (5) 236,325 6,0463.42% 176,462 3,6052.73%Debt securities held for trading 783 61.02% 67 35.99%Equity securities with readily determinable fair value not held for trading 2,455 211.14% 8,615 ——%Federal Reserve Bank and FHLB stock 54,911 2,8336.90% 50,118 1,6904.51%Deposits with banks 342,127 14,2725.58% 247,401 2,1021.14%Other short-term investments 662 234.65% — ——%Total interest-earning assets (6) 8,694,544 403,0106.20% 7,331,158 225,4024.11%Total non-interest-earning assets less allowance for loan losses 735,943 592,087 Total assets$9,430,487 $7,923,245 Interest-bearing liabilities: Checking and saving accounts - Interest bearing DDA$2,503,147 $46,2012.47% $1,769,001 $6,2580.47%Money market 1,215,005 28,2953.11% 1,293,748 5,6390.58%Savings 288,959 1140.05% 321,634 800.03%Total checking and saving accounts 4,007,111 74,6102.49% 3,384,383 11,9770.47%Time deposits 2,006,417 53,8443.59% 1,265,982 13,5011.43%Total deposits 6,013,528 128,4542.86% 4,650,365 25,4780.73%Securities sold under agreements to repurchase 130 55.14% 20 ——%Advances from the FHLB (7) 862,310 22,5913.50% 883,566 9,7991.48%Senior notes 59,330 2,8256.37% 59,014 2,8256.40%Subordinated notes 29,349 1,0844.94% 22,030 8114.92%Junior subordinated debentures 64,178 3,2646.80% 64,178 2,0024.17%Total interest-bearing liabilities 7,028,825 158,2233.01% 5,679,173 40,9150.96%Non-interest-bearing liabilities: Non-interest bearing demand deposits 1,348,242 1,275,689 Accounts payable, accrued liabilities and other liabilities 313,967 209,123 Total non-interest-bearing liabilities 1,662,209 1,484,812 Total liabilities 8,691,034 7,163,985 Stockholders’ equity 739,453 759,260 Total liabilities and stockholders' equity$9,430,487 $7,923,245 Excess of average interest-earning assets over average interest-bearing liabilities$1,665,719 $1,651,985 Net interest income $244,787 $184,487 Net interest rate spread 3.19% 3.15%Net interest margin (8) 3.76% 3.36%Cost of total deposits (9) 2.33% 0.57%Ratio of average interest-earning assets to average interest-bearing liabilities 123.70% 129.09% Average non-performing loans/ Average total loans 0.48% 0.56% ___________(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 $101.2 million, $84.6 million, and $51.9 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $89.1 million and $58.4 million in the nine months ended September 30, 2023 and 2022, respectively. The average balance of total loans held for sale was $58.8 million, $85.1 million and $142.5 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $70.1 million and $130.8 million in the nine months ended September 30, 2023 and 2022, respectively.(2)Includes average non-performing loans of $39.8 million, $38.5 million and $25.3 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, $34.1 million and $32.4 million in the nine months ended September 30, 2023 and 2022, 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 $119.8 million, $106.7 million, and $72.4 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $110.5 million and $42.9 million in the nine months ended September 30, 2023 and 2022, respectively.(4)Includes nontaxable securities with average balances of $18.6 million, $19.5 million and $17.1 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $18.6 million in each of the nine months ended September 30, 2023 and 2022. The tax equivalent yield for these nontaxable securities was 4.34%, 4.53% and 2.69% for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and 4.64% and 3.67% in the nine months ended September 30, 2023 and 2022, respectively. In 2023 and 2022, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.(5)Includes nontaxable securities with average balances of $49.6 million, $50.1 million and $41.9 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $50.1 million and $42.9 million for the nine months ended September 30, 2023 and 2022, respectively. The tax equivalent yield for these nontaxable securities was 4.26%, 4.16% and 3.48% for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and 4.21% and 3.31% for the nine months ended September 30, 2023 and 2022, respectively. In 2023 and 2022, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.(6)Excludes the allowance for credit losses.(7)The terms of the FHLB advance agreements require the Bank to maintain certain investment securities or loans as collateral for these advances.(8)NIM is defined as net interest income divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.(9)Calculated based upon the average balance of total noninterest bearing and interest bearing deposits. Exhibit 4 - Noninterest Income This table shows the amounts of each of the categories of noninterest income for the periods presented. Three Months Ended Nine Months Ended September 30, September 30, 2023 June 30, 2023 September 30, 2022 2023 2022 (in thousands, except percentages)Amount % Amount % Amount % Amount% Amount% Deposits and service fees$5,053 23.1% $4,944 18.6% $4,629 29.0% $14,952 22.0% $13,826 32.2%Brokerage, advisory and fiduciary activities 4,370 19.9% 4,256 16.0% 4,619 29.0% 12,808 18.9% 13,654 31.8%Change in cash surrender value of bank owned life insurance (“BOLI”)(1) 1,483 6.8% 1,429 5.4% 1,352 8.5% 4,324 6.4% 4,028 9.4%Cards and trade finance servicing fees 734 3.4% 562 2.1% 622 3.9% 1,829 2.7% 1,720 4.0%Gain (loss) on early extinguishment of FHLB advances, net 7,010 32.0% 13,440 50.5% — —% 33,623 49.5% (712)(1.7)%Securities losses, net (2) (54) (0.3)% (1,237) (4.7)% 1,508 9.5% (11,022)(16.2)% (325)(0.8)%Loan-level derivative income (3) 1,196 5.5% 476 1.8% 2,786 17.5% 3,743 5.5% 6,947 16.2%Derivative (losses) gains, net (4) (77) (0.4)% 242 0.9% (95) (0.6)% 179 0.3% (585)(1.4)%Other noninterest income (5) 2,206 10.0% 2,507 9.4% 535 3.2% 7,447 10.9% 4,359 10.3%Total noninterest income$21,921 100.0% $26,619 100.0% $15,956 100.0% $67,883 100.0% $42,912 100.0% __________________(1)Changes in cash surrender value of BOLI are not taxable.(2)Includes net loss of $1.2 million and net gains of $22 thousand in the three months ended June 30, 2023 and September 30, 2022, respectively, and net loss of $10.8 million and net gain of $0.1 million in the nine months ended September 30, 2023 and 2022, respectively, in connection with the sale of debt securities available for sale. There were no significant gains and losses in connection with the sale of debt securities available for sale in the three months ended September 30, 2023. In addition, includes unrealized losses of $0.1 million and unrealized gains of $1.5 million in the three months ended September 30, 2023 and 2022, respectively, and unrealized losses of $0.1 million and $0.4 million in the nine months ended September 30, 2023 and 2022, respectively, related to the change in fair value of equity securities with readily available fair value not held for trading which are recorded in results of the period. There were no significant unrealized losses related to equity securities with readily available fair value not held for trading in the three months ended June 30, 2023. Also, in the nine months ended September 30, 2023, the Company sold equity securities with readily available fair value not held for trading, with a total fair value of $11.2 million at the time of sale, and recognized a net loss of $0.2 million in connection with this transaction.(3)Income from interest rate swaps and other derivative transactions with customers. The Company incurred expenses related to derivative transactions with customers of $18.0 thousand, $0.1 million and $1.8 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $1.7 million and $4.9 million in the nine months ended September 30, 2023 and 2022, respectively, which are included as part of noninterest expenses under loan-level derivative expense.(4)Net unrealized gains and losses related to uncovered interest rate caps with clients.(5)Includes mortgage banking income of $0.5 million, $1.6 million and $0.1 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $3.9 million and $3.2 million in the nine months ended September 30, 2023 and 2022, respectively, related to Amerant Mortgage. In addition, includes rental income from operating leases of $0.3 million and $0.4 million in the three months ended September 30, 2023 and June 30, 2023, respectively, and $0.7 million in the nine months ended September 30, 2023. 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 Nine Months Ended September 30, September 30, 2023 June 30, 2023 September 30, 2022 2023 2022 (in thousands, except percentages)Amount % Amount % Amount % Amount% Amount% Salaries and employee benefits (1)$31,334 48.6% $34,24747.2% $30,10953.7% $100,45749.8% $90,72450.6%Occupancy and equipment (2) 7,293 11.3% 6,7379.3% 6,55911.7% 20,82810.3% 21,04411.8%Professional and other services fees (3) 5,325 8.3% 7,41510.2% 5,0459.0% 20,36810.1% 15,9188.9%Loan-level derivative expense (4) 18 —% 1100.2% 1,8103.2% 1,7280.9% 4,8652.7%Telecommunications and data processing (5) 3,556 5.5% 5,0276.9% 3,8616.9% 11,6475.8% 11,1136.2%Depreciation and amortization (6) 1,795 2.8% 2,2753.1% 1,4812.6% 5,3622.7% 3,9272.2%FDIC assessments and insurance 2,590 4.0% 2,7393.8% 1,7463.1% 8,0664.0% 4,6682.6%Loans held for sale valuation expense (7) 5,562 8.6% ——% ——% 5,5622.8% 1590.1%Advertising expenses 2,724 4.2% 4,3326.0% 2,0663.7% 9,6424.8% 8,2914.6%Other real estate owned and repossessed assets (income) expense, net (8)(9) (134)(0.2)% 2,4313.4% 2340.4% 2,2971.1% 3,4081.9%Contract termination costs (10) — —% 1,5502.1% 2890.5% 1,5500.8% 7,1034.0%Other operating expenses (11) 4,357 6.9% 5,6377.8% 2,9135.2% 14,1466.9% 7,9524.4%Total noninterest expense (12)$64,420 100.0% $72,500100.0% $56,113100.0% $201,653100.0% $179,172100.0% __________________(1)Includes staff reduction costs of $0.5 million, $2.2 million and $0.4 million in the three months ended September 30, 2023 June 30, 2023 and September 30, 2022, respectively, and $2.9 million and $1.8 million in the nine months ended September 30, 2023 and 2022, respectively, which consist of severance expenses primarily related to organizational rationalization.(2)In each of the three and the nine month periods ended September 30, 2023, includes a rent termination fee of $0.3 million in connection with the closure of a branch in Houston, Texas. In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes $0.6 million related to ROU asset impairment in connection with the closure of a branch in Miami, Florida in 2023. In addition, in the nine months ended September 30, 2023, includes $0.5 million related to ROU asset impairment in connection with the closure of a branch in Houston, Texas in 2023. In the nine months ended September 30, 2022, includes ROU asset impairment charge of $1.6 million in connection with the closure of a branch in Pembroke Pines, Florida in 2022. There were no ROU asset impairment charges in connection with branch closures in the three months ended September 30, 2023 and 2022.(3)Includes additional expenses of $2.0 million and $1.0 million in the three months ended June 30, 2023 and September 30, 2022, respectively, and $4.6 million and $1.8 million in the nine months ended September 30, 2023 and 2022, respectively, related to the engagement of FIS.(4)Includes services fees in connection with our loan-level derivative income generation activities.(5)Includes a charge of $1.4 million in each of the three months ended June 30, 2023 and the nine months ended September 30, 2023 related to the disposition of fixed assets due to the write off of in-development software.(6)Includes a charge of $0.9 million in each of the three months ended June 30, 2023 and the nine months ended September 30, 2023 for the accelerated depreciation of leasehold improvements in connection with the closure of a branch in Miami, Florida in 2023.(7)Valuation allowance as a result of changes in the fair value of loans held for sale carried at the lower of cost or fair value.(8)In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes a loss on sale of repossessed assets in connection with our equipment-financing activities of $2.6 million. In the three and nine month periods ended September 30, 2022, includes $0.2 million and $3.4 million, respectively, related to the fair value adjustment of one other real estate owned (“OREO”) property in New York. In addition, in the three months ended September 30, 2023 and June 30, 2023, and the nine months ended September 30, 2023, includes OREO rental income of $0.4 million, $0.4 million, and $0.9 million, respectively. We had no OREO rental income in the three and nine month periods ended September 30, 2022.(9)Beginning in the three months ended June 30, 2023, OREO and repossessed assets expense is presented separately in the Company’s consolidated statement of operations and comprehensive (loss) income. In 2022, while OREO valuation expense was presented separately, all other OREO-related expenses were presented as part of other operating expenses in the Company’s consolidated statement of operations and comprehensive (loss) income. We had no other repossessed assets in 2022.(10)Contract termination and related costs associated with third party vendors resulting from the Company’s transition to our new technology provider.(11)In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes an impairment charge of $2.0 million related to an investment carried at cost and included in other assets. In addition, in all of the periods shown, includes 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.(12)Includes $3.0 million, $4.0 million and $2.7 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $10.9 million and $9.8 million in the nine months ended September 30, 2023 and 2022, respectively, related to Amerant Mortgage, primarily consisting of salaries and employee benefits, mortgage lending costs and professional and other services fees. Exhibit 6 - Consolidated Balance Sheets (in thousands, except share data)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Assets (audited)Cash and due from banks$48,145 $45,184 $41,489 $19,486 Interest earning deposits with banks 202,946 365,673 411,747 228,955 Restricted cash 51,837 34,204 32,541 42,160 Other short-term investments 6,024 — — — Cash and cash equivalents 308,952 445,061 485,777 290,601 Securities Debt securities available for sale, at fair value 1,033,797 1,027,676 1,045,883 1,057,621 Debt securities held to maturity, at amortized cost (estimated fair value of $195,165, $209,546, $218,388 and $217,609 at September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively) 230,254 234,369 239,258 242,101 Trading securities — 298 — — Equity securities with readily determinable fair value not held for trading 2,438 2,500 — 11,383 Federal Reserve Bank and Federal Home Loan Bank stock 47,878 50,460 62,556 55,575 Securities 1,314,367 1,315,303 1,347,697 1,366,680 Loans held for sale, at lower of fair value or cost (1) 43,257 — — — Mortgage loans held for sale, at fair value 25,952 49,942 65,289 62,438 Loans held for investment, gross 7,073,387 7,167,016 7,049,746 6,857,194 Less: Allowance for credit losses 98,773 105,956 84,361 83,500 Loans held for investment, net 6,974,614 7,061,060 6,965,385 6,773,694 Bank owned life insurance 232,736 231,253 229,824 228,412 Premises and equipment, net 43,004 43,714 42,380 41,772 Deferred tax assets, net 63,501 56,779 46,112 48,703 Operating lease right-of-use assets 116,763 116,161 119,503 139,987 Goodwill 20,525 20,525 20,525 19,506 Accrued interest receivable and other assets (2) 202,029 179,728 172,810 156,011 Total assets$9,345,700 $9,519,526 $9,495,302 $9,127,804 Liabilities and Stockholders' Equity Deposits Demand Noninterest bearing$1,370,157 $1,293,522 $1,360,626 $1,367,664 Interest bearing 2,416,797 2,773,120 2,489,565 2,300,469 Savings and money market 1,457,080 1,431,375 1,507,195 1,647,811 Time 2,302,878 2,081,554 1,929,340 1,728,255 Total deposits 7,546,912 7,579,571 7,286,726 7,044,199 Advances from the Federal Home Loan Bank 595,000 770,000 1,052,012 906,486 Senior notes 59,447 59,368 59,289 59,210 Subordinated notes 29,412 29,369 29,326 29,284 Junior subordinated debentures held by trust subsidiaries 64,178 64,178 64,178 64,178 Operating lease liabilities (3) 120,665 119,921 122,214 140,147 Accounts payable, accrued liabilities and other liabilities (4) 210,299 176,163 152,501 178,574 Total liabilities 8,625,913 8,798,570 8,766,246 8,422,078 Stockholders’ equity Class A common stock 3,359 3,374 3,383 3,382 Additional paid in capital 194,103 195,275 194,782 194,694 Retained earnings 630,933 611,829 607,544 590,375 Accumulated other comprehensive loss (105,634) (86,926) (74,319) (80,635)Total stockholders' equity before noncontrolling interest 722,761 723,552 731,390 707,816 Noncontrolling interest (2,974) (2,596) (2,334) (2,090)Total stockholders' equity 719,787 720,956 729,056 705,726 Total liabilities and stockholders' equity$9,345,700 $9,519,526 $9,495,302 $9,127,804 __________(1)As of September 30, 2023, includes a valuation allowance of $5.6 million as a result of fair value adjustment.(2)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes derivative assets with a total fair value of $87.1 million, $75.8 million, $60.8 million and $78.3 million, respectively.(3)Consists of total long-term lease liabilities. Total short-term lease liabilities are included in other liabilities.(4)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes derivatives liabilities with a total fair value of $85.6 million, $74.5 million, $59.5 million and $77.2 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)September 30,2023 June 30,2023 March 31,2023 December 31,2022Real estate loans Commercial real estate Non-owner occupied$1,593,571 $1,645,224 $1,630,451 $1,615,716Multi-family residential 771,654 764,712 796,125 820,023Land development and construction loans 301,938 314,010 303,268 273,174 2,667,163 2,723,946 2,729,844 2,708,913Single-family residential 1,371,194 1,285,857 1,189,045 1,102,845Owner occupied 1,129,921 1,063,240 1,069,491 1,046,450 5,168,278 5,073,043 4,988,380 4,858,208Commercial loans (1) 1,452,759 1,577,209 1,497,649 1,381,234Loans to financial institutions and acceptances 13,353 13,332 13,312 13,292Consumer loans and overdrafts (2) 438,997 503,432 550,405 604,460Total loans$7,073,387 $7,167,016 $7,049,746 $6,857,194 __________________(1)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes approximately $49.3 million, $47.7 million, $46.7 million and $45.3 million, respectively, in commercial loans and leases originated under a white-label equipment financing solution launched in the second quarter of 2022.(2)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes $254.7 million, $312.3 million, $372.2 million and $433.3 million, respectively, in consumer loans purchased under indirect lending programs. In addition, as of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes $57.5 million, $61.8 million, $62.1 million and $43.8 million, respectively, in consumer loans originated under a white-label program. Loans by Type - Held For Sale The loan portfolio held for sale consists of the following loan classes: (in thousands)September 30,2023 June 30,2023 March 31,2023 December 31,2022Loans held for sale at the lower of fair value or cost (audited)Real estate loans Commercial real estate Non-owner occupied$43,256 $— $— $—Total loans held for sale at the lower of fair value or cost (1) 43,256 — — — Loans held for sale at fair value Land development and construction loans (2) 6,931 3,726 15,527 9,424Single-family residential (3) 19,022 46,216 49,762 53,014Total loans held for sale at fair value (4) 25,953 49,942 65,289 62,438Total loans held for sale (5)$69,209 $49,942 $65,289 $62,438 __________________(1)In the third quarter of 2023, the Company transferred a New York-based CRE loan held for investment to the loans held for sale category, and recognized a valuation allowance of $5.6 million as a result of the fair value adjustment of this loan.(2)In the second quarter of 2023, the Company transferred approximately $13 million in land development and construction loans held for sale to the loans held for investment category.(3)In the third and second quarters of 2023, the Company transferred approximately $17 million and $28 million, respectively, in single-family residential loans held for sale to the loans held for investment category.(4)Loans held for sale in connection with Amerant Mortgage’s ongoing business.(5)Remained current and in accrual status at each of the periods shown. Non-Performing Assets This table shows a summary of our non-performing assets by loan class, which includes non-performing loans, other real estate owned, or OREO, and other repossessed assets at the dates presented. Non-performing loans consist of (i) nonaccrual loans, and (ii) accruing loans 90 days or more contractually past due as to interest or principal. (in thousands)September 30,2023 June 30,2023 March 31,2023 December 31,2022Non-Accrual Loans(1) (audited)Real Estate Loans Commercial real estate (CRE) Non-owner occupied$— $1,696 $— $20,057Multi-family residential 23,344 24,306 — — 23,344 26,002 — 20,057Single-family residential 2,533 1,681 1,367 1,526Owner occupied (2) 2,100 6,890 7,118 6,270 27,977 34,573 8,485 27,853Commercial loans (2)(3) 4,713 12,241 13,643 9,271Consumer loans and overdrafts (4) 1 1 1 4Total Non-Accrual Loans$32,691 $46,815 $22,129 $37,128 Past Due Accruing Loans(5) Real Estate Loans Commercial real estate (CRE) Single-family residential — 302 — 253Commercial 504 — — 183Consumer loans and overdrafts — 78 53 35Total Past Due Accruing Loans$504 $380 53 $471Total Non-Performing Loans 33,195 47,195 22,182 37,599OREO and other repossessed assets 20,181 20,181 26,534 —Total Non-Performing Assets$53,376 $67,376 $48,716 $37,599 __________________(1)Prior to the first quarter of 2023, included loan modifications that met the definition of troubled debt restructurings, or TDR, which may be performing in accordance with their modified loan terms.(2)In the third quarter of 2023, the Company sold a loan relationship in nonaccrual status and classified as Substandard with a total carrying value of $8.6 million at the time of sale. This loan relationship included a commercial loan of $4.6 million and multiple owner occupied loans totaling $4.0 million. The Company charged-off $2.1 million against the ACL in the third quarter of 2023 in connection with this sale, which had already been reserved in a prior period. Therefore, this transaction had no impact to the Company’s results of operations in the third quarter of 2023.(3)In the second quarter of 2023, we collected $2.8 million in full satisfaction of a commercial loan relationship in nonaccrual status and classified as Substandard at March 31, 2023.(4)In the fourth quarter of 2022, the Company changed its charge-off policy for unsecured consumer loans from 120 to 90 days past due. This change resulted in an additional $3.4 million in charge-offs for unsecured consumer loans in the fourth quarter of 2022.(5)Loans past due 90 days or more but still accruing. Loans by Credit Quality Indicators This table shows the Company’s loans by credit quality indicators. The Company has not purchased credit-impaired loans. September 30, 2023 June 30, 2023 September 30, 2022 (in thousands)Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1)Real Estate Loans Commercial Real Estate (CRE) Non-owner occupied$—$—$—$— $8,301$1,753$—$10,054 $37,364$—$—$37,364Multi-family residential — 23,344 — 23,344 — 24,306 — 24,306 — — — —Land development and construction loans — — — — 6,497 — — 6,497 — — — — — 23,344 — 23,344 14,798 26,059 — 40,857 37,364 — — 37,364Single-family residential — 3,085 — 3,085 — 2,154 — 2,154 — 1,717 — 1,717Owner occupied (2) 2,234 2,180 — 4,414 2,236 6,972 — 9,208 — 6,445 — 6,445 2,234 28,609 — 30,843 17,034 35,185 — 52,219 37,364 8,162 — 45,526Commercial loans (2)(3) 26,975 5,732 3 32,710 13,029 13,312 3 26,344 1,800 10,942 3 12,745Consumer loans and overdrafts — 1 — 1 — 70 — 70 — 947 — 947Totals$29,209$34,342$3$63,554 $30,063$48,567$3$78,633 $39,164$20,051$3$59,218 __________________(1)There were no loans categorized as “loss” as of the dates presented.(2)In the third quarter of 2023, the Company sold a loan relationship in nonaccrual status and classified as Substandard with a total carrying value of $8.6 million at the time of sale. This loan relationship included a commercial loan of $4.6 million and multiple owner occupied loans totaling $4.0 million. The Company charged-off $2.1 million against the ACL in the third quarter of 2023 in connection with this sale, which had already been reserved in a prior period. Therefore, this transaction had no impact to the Company’s results of operations in the third quarter of 2023.(3)In the second quarter of 2023, we collected $2.8 million in full satisfaction of a commercial loan relationship in nonaccrual status and classified as Substandard at March 31, 2023. 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)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 (audited) Domestic$5,067,937 $5,113,604 $4,891,873 $4,620,906 Foreign: Venezuela 1,892,453 1,912,994 1,897,199 1,911,551 Others 586,522 552,973 497,654 511,742 Total foreign 2,478,975 2,465,967 2,394,853 2,423,293 Total deposits$7,546,912 $7,579,571 $7,286,726 $7,044,199 CONTACTS:InvestorsLaura RossiInvestorRelations@amerantbank.com(305) 460-8728 MediaVictoria VerdejaMediaRelations@amerantbank.com(305) 441-5541 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Amerant Reports Third Quarter 2023 Results By: Amerant Bancorp Inc. via GlobeNewswire October 19, 2023 at 16:45 PM EDT CORAL GABLES, Fla., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Amerant Bancorp Inc. (NYSE: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $22.1 million in the third quarter of 2023, or $0.66 per diluted share, compared to net income attributable to the Company of $7.3 million, or $0.22 per diluted share, in the second quarter of 2023. “We are pleased to report significantly improved operating results this quarter,” stated Jerry Plush, Chairman and CEO. “Our team members continued to focus on “deposits first” as the top strategic priority, and by originating strong organic deposit growth again this quarter, that enabled us to further reduce higher cost institutional deposits. In the fourth quarter, we look forward to completing the long-awaited systems conversion and then being able to fully focus our efforts on business development and customer service.” Total assets were $9.3 billion, a decrease of $173.8 million, or 1.8%, compared to 2Q23. Total gross loans were $7.14 billion, a decrease of $74.4 million, or 1.0%, compared to $7.22 billion in 2Q23. Total gross loans includes $69.2 million in held for sale loans out of which $43.3 million are related to a NYC commercial real estate loan transferred in 3Q23 from loans held for investment at the lower of its estimated fair value or cost, and mortgage loans at their estimated fair value totaling $26.0 million.Cash and cash equivalents were $309.0 million, down $136.1 million, or 30.6%, compared to $445.1 million in 2Q23.Total deposits were $7.55 billion, down $32.7 million, or 0.4%, compared to $7.58 billion in 2Q23. Organic deposit growth was $208 million, which helped enable reductions in higher-cost institutional deposits of $292 million. Time deposits increased $221.3 million as customers continued to seek higher returns on deposits. This includes an increase in brokered time deposits in the amount of $92.4 million, a strategic move to obtain 2 to 5 year funding, as part of asset/liability management.Total advances from Federal Home Loan Bank (“FHLB”) were $595.0 million, down $175.0 million, or 22.7%, compared to $770.0 million in 2Q23, the result of early repayment of $225.0 million during the quarter. The Bank had an additional $2.3 billion in availability from the FHLB as of September 30, 2023.Average yield on loans decreased to 6.77% in 3Q23, compared to 6.79% in 2Q23.Total non-performing assets decreased to $53.4 million, down $14.0 million, or 20.8%, compared to $67.4 million as of 2Q23.The allowance for credit losses ("ACL") was $98.8 million, a decrease of $7.2 million, or 6.8%, compared to $106.0 million as of 2Q23.Core deposits were $5.24 billion, down $254.0 million, or 4.6%, compared to $5.50 billion in 2Q23. Non-interest bearing deposits increased $76.6 million, or 5.9%, to $1.37 billion in 3Q23 compared to $1.29 billion in 2Q23. Average cost of total deposits increased to 2.66% in 3Q23 compared to 2.40% in 2Q23. Loan to deposit ratio improved to 94.64% in 3Q23 compared to 95.22% in 2Q23.Assets Under Management and custody (“AUM”) totaled $2.09 billion, down $55.3 million, or 2.6%, from $2.15 billion in 2Q23.Pre-provision net revenue (“PPNR”)(1) was $36.5 million in 3Q23, a decrease of $1.8 million or 4.7%, compared to $38.3 million in 2Q23.Net Interest Margin (“NIM”) was 3.57% in 3Q23 compared to 3.83% in 2Q23.Net Interest Income (“NII”) was $78.6 million, down $5.3 million, or 6.3%, from $83.9 million in 2Q23. Provision for credit losses was $8.0 million in 3Q23, down $21.1 million, or 72.5%, compared to $29.1 million in 2Q23. The provision for credit losses in 3Q23 was comprised of $7.6 million to cover charge-offs, $1.4 million due to loan composition and volume changes and $0.6 million added to the provision for credit contingencies, which is recorded in other liabilities. These provision requirements were offset by a $0.4 million release due to credit quality and factor updates and a $1.2 million release due to recoveries.Non-interest income was $21.9 million in 3Q23, down $4.7 million, or 17.6%, from $26.6 million in 2Q23. 3Q23 included $6.9 million in non-routine net gains compared to $12.4 million in 2Q23.Non-interest expense was $64.4 million, down $8.1 million, or 11.1%, from $72.5 million in 2Q23. 3Q23 included $6.3 million in non-routine non-interest expenses compared to $13.4 million in 2Q23. The efficiency ratio was 64.1% in 3Q23 compared to 65.6% in 2Q23.Return on average assets (“ROA”) was 0.92% in 3Q23 compared to 0.31% in 2Q23.Return on average equity (“ROE”) was 11.93% in 3Q23 compared to 3.92% in 2Q23. Repurchased 142,888 shares for $2.7 million during 3Q23. As of September 30, 2023, repurchases totaled 259,853 shares for $4.9 million; $20 million remains available of $25 million Class A common stock share repurchase program. Additional details on third quarter 2023 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. On October 18, 2023, the Company’s board of directors declared a quarterly cash dividend of $0.09 per common share. The dividend is payable on November 30, 2023 to shareholders of record on November 14, 2023. 1 Non-GAAP measure, see “Non-GAAP Financial Measures” for more information and Exhibit 2 for a reconciliation to GAAP measures. Third Quarter 2023 Earnings Conference Call The Company will hold an earnings conference call on Friday, October 20, 2023 at 9:00 a.m. (Eastern Time) to discuss its third quarter 2023 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the Company’s website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link. About Amerant Bancorp Inc. (NYSE: AMTB) Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S. with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the largest community bank headquartered in Florida. The Bank operates 23 banking centers – 17 in South Florida and 6 in the Houston, Texas area, as well as an LPO in Tampa, Florida. For more information, visit investor.amerantbank.com. FIS® and any associated brand names/logos are the trademarks of FIS and/or its affiliates. Cautionary Notice Regarding Forward-Looking Statements This press release contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “goals,” “outlooks,” “modeled,” “dedicated,” “create,” and other similar words and expressions of the future. Forward-looking statements, including those relating to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2022 filed on March 1, 2023 (the “Form 10-K”), our quarterly report on Form 10-Q for the quarter ended March 31, 2023 filed on May 2, 2023, 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 and nine month periods ended September 30, 2023 and 2022, may not reflect our results of operations for our fiscal year ending, or financial condition, as of December 31, 2023, or any other period of time or date. As previously disclosed in the Form 10-K, the Company adopted the new guidance on accounting for current expected credit losses on financial instruments (“CECL”) effective as of January 1, 2022. Quarterly amounts previously reported on our quarterly reports on Form 10-Q for the periods ended March 31, 2022, June 30, 2022 and September 30, 2022 do not reflect the adoption of CECL. In the fourth quarter of 2022, the Company recorded a provision for credit losses totaling $20.9 million, including $11.1 million related to the retroactive effect of adopting CECL for all previous quarterly periods in the year ended December 31, 2022, including loan growth and changes to macro-economic conditions during the period. Quarterly amounts included in the Form 10-K and this earnings release and accompanying presentation reflect the impacts of the adoption of CECL on each interim period of 2022. See the Form 10-K for more details on the adoption of CECL. The following table shows changes to previously-reported amounts for the quarter ended December 31, 2022 versus the corresponding amounts reflecting the adoption of CECL in 2022: (in thousands, except per share amounts)As Reported As Recast ChangesTotal interest income$113,374 $113,374 $— Total interest expense 31,196 31,196 — Net interest income 82,178 82,178 — Provision for credit losses 20,945 16,857 (4,088)Net interest income after provision for credit losses 61,233 65,321 4,088 Total noninterest income 24,365 24,365 — Total noninterest expense 62,241 62,241 — Income before income taxes 23,357 27,445 4,088 Income tax expense (4,746) (5,627) (881)Net income before attribution of noncontrolling interest 18,611 21,818 3,207 Noncontrolling interest (155) (155) — Net income attributable to Amerant Bancorp Inc.$18,766 $21,973 $3,207 Basic earnings per common share$0.56 $0.66 $0.10 Diluted earnings per common share$0.55 $0.65 $0.10 Cash dividends declared per common share$0.09 $0.09 $— Non-GAAP Financial Measures The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with non-GAAP financial measures, such as “pre-provision net revenue (PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core noninterest income”, “core noninterest expenses”, “core net income”, “core earnings per share (basic and diluted)”, “core return on assets (Core ROA)”, “core return on equity (Core ROE)”, “core efficiency ratio”, “tangible stockholders’ equity (book value) per common share”, “tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity”, and “tangible stockholders' equity (book value) per common share, adjusted for unrealized losses on debt securities held to maturity”. This supplemental information is not required by, or is not presented in accordance with GAAP. The Company refers to these financial measures and ratios as “non-GAAP financial measures” and they should not be considered in isolation or as a substitute for the GAAP measures presented herein. We use certain non-GAAP financial measures, including those mentioned above, both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our past performance and prospects for future performance, especially in light of the additional costs we have incurred in connection with the Company’s restructuring activities that began in 2018 and continued in 2023, including the effect of non-core banking activities such as the sale of loans and securities and other repossessed assets, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments, and other non-routine actions intended to improve customer service and operating performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies. Exhibit 2 reconciles these non-GAAP financial measures to GAAP reported results. Exhibit 1- Selected Financial Information The following table sets forth selected financial information derived from our interim unaudited and annual audited consolidated financial statements. (in thousands)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Consolidated Balance Sheets (audited)Total assets$9,345,700 $9,519,526 $9,495,302 $9,127,804Total investments 1,314,367 1,315,303 1,347,697 1,366,680Total gross loans (1) 7,142,596 7,216,958 7,115,035 6,919,632Allowance for credit losses 98,773 105,956 84,361 83,500Total deposits 7,546,912 7,579,571 7,286,726 7,044,199Core deposits (2) 5,244,034 5,498,017 5,357,386 5,315,944Advances from the Federal Home Loan Bank 595,000 770,000 1,052,012 906,486Senior notes 59,447 59,368 59,289 59,210Subordinated notes 29,412 29,369 29,326 29,284Junior subordinated debentures 64,178 64,178 64,178 64,178Stockholders' equity (3)(4) 719,787 720,956 729,056 705,726Assets under management and custody (5) 2,092,200 2,147,465 2,107,603 1,995,666 Three Months Ended(in thousands, except percentages, share data and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Consolidated Results of Operations Net interest income$78,577 $83,877 $82,333 $82,178 Provision for credit losses (6)(7) 8,000 29,077 11,700 16,857 Noninterest income 21,921 26,619 19,343 24,365 Noninterest expense 64,420 72,500 64,733 62,241 Net income attributable to Amerant Bancorp Inc. (6) (8) 22,119 7,308 20,186 21,973 Effective income tax rate (6) 22.57% 21.00% 21.00% 20.50% Common Share Data Stockholders' book value per common share$21.43 $21.37 $21.56 $20.87 Tangible stockholders' equity (book value) per common share (9)$20.63 $20.66 $20.84 $20.19 Tangible stockholders' equity (book value) per common share, adjusted for unrealized losses on debt securities held to maturity (9)$19.86 $20.11 $20.38 $19.65 Basic earnings per common share (6)$0.66 $0.22 $0.60 $0.66 Diluted earnings per common share (6)(10)$0.66 $0.22 $0.60 $0.65 Basic weighted average shares outstanding 33,489,560 33,564,770 33,559,718 33,496,096 Diluted weighted average shares outstanding (10) 33,696,620 33,717,702 33,855,994 33,813,593 Cash dividend declared per common share (4)$0.09 $0.09 $0.09 $0.09 Three Months Ended September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Other Financial and Operating Data (11) Profitability Indicators (%) Net interest income / Average total interest earning assets (NIM) (12)3.57% 3.83% 3.90% 3.96% Net income / Average total assets (ROA) (6) (13)0.92% 0.31% 0.88% 0.97% Net income / Average stockholders' equity (ROE) (6)(14)11.93% 3.92% 11.15% 12.10% Noninterest income / Total revenue (15)21.81% 24.09% 19.02% 22.87% Capital Indicators (%) Total capital ratio (16)12.70% 12.39% 12.36% 12.39% Tier 1 capital ratio (17)11.08% 10.77% 10.88% 10.89% Tier 1 leverage ratio (18)9.05% 8.91% 9.04% 9.18% Common equity tier 1 capital ratio (CET1) (19)10.30% 10.00% 10.10% 10.10% Tangible common equity ratio (20)7.44% 7.34% 7.44% 7.50% Tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity (21)7.18% 7.16% 7.29% 7.31% Liquidity Ratios (%) Loans to Deposits (22)94.64% 95.22% 97.64% 98.23% Asset Quality Indicators (%) Non-performing assets / Total assets (23)0.57% 0.71% 0.51% 0.41% Non-performing loans / Total gross loans (1) (24)0.46% 0.65% 0.31% 0.54% Allowance for credit losses / Total non-performing loans (24)297.55% 224.51% 380.31% 222.08% Allowance for credit losses / Total loans held for investment1.40% 1.48% 1.20% 1.22% Net charge-offs / Average total loans held for investment (25)0.82% 0.42% 0.64% 0.59% Efficiency Indicators (% except FTE) Noninterest expense / Average total assets2.69% 3.06% 2.82% 2.75% Salaries and employee benefits / Average total assets1.31% 1.45% 1.52% 1.45% Other operating expenses/ Average total assets (26)1.38% 1.62% 1.30% 1.30% Efficiency ratio (27)64.10% 65.61% 63.67% 58.42% Full-Time-Equivalent Employees (FTEs) (28)700 710 722 692 Three Months Ended(in thousands, except percentages and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Core Selected Consolidated Results of Operations and Other Data (9) Pre-provision net revenue (PPNR)$36,456 $38,258 $37,187 $44,457 Core pre-provision net revenue (Core PPNR)$35,880 $39,196 $37,103 $37,838 Core net income (6)$21,664 $8,048 $20,120 $16,817 Core basic earnings per common share (6) 0.65 0.24 0.60 0.50 Core earnings per diluted common share (6) (10) 0.64 0.24 0.59 0.50 Core net income / Average total assets (Core ROA) (6) (13) 0.91% 0.34% 0.88% 0.74% Core net income / Average stockholders' equity (Core ROE) (6) (14) 11.69% 4.32% 11.11% 9.26% Core efficiency ratio (29) 62.08% 60.29% 62.47% 61.34% __________________(1)Total gross loans include loans held for investment net of unamortized deferred loan origination fees and costs, as well as loans held for sale. As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, mortgage loans held for sale carried at fair value totaled $26.0 million, $49.9 million, $65.3 million and $62.4 million, respectively. In addition, as of September 30, 2023, includes $43.3 million in loans held for sale carried at the lower of estimated fair value or cost.(2)Core deposits consist of total deposits excluding all time deposits.(3)In the fourth quarter of 2022, the Company announced that the Board of Directors authorized a new repurchase program pursuant to which the Company may purchase, from time to time, up to an aggregate amount of $25 million of its shares of Class A common stock (the “2023 Class A Common Stock Repurchase Program”). In the third, second and first quarters of 2023, the Company repurchased an aggregate of 142,188 shares of Class A common stock, 95,262 shares of Class A common stock and 22,403 shares of Class A common stock, respectively, at a weighted average price of $19.05 per share, $17.42 per share and $25.25 per share, respectively, under the 2023 Class A Common Stock Repurchase Program. In the third, second and first quarters of 2023, the aggregate purchase price for these transactions was approximately $2.7 million, $1.7 million and $0.6 million, respectively, including transaction costs.(4)For each of the third, second and first quarters of 2023 and the fourth quarter of 2022, the Company’s Board of Directors declared cash dividends of $0.09 per share of the Company’s common stock and paid an aggregate amount of $3.0 million per quarter in connection with these dividends. The dividend declared in the third quarter of 2023 was paid on August 31, 2023 to shareholders of record at the close of business on August 15, 2023. The dividend declared in the second quarter of 2023 was paid on May 31, 2023 to shareholders of record at the close of business on May 15, 2023. The dividend declared in the first quarter of 2023 was paid on February 28, 2023 to shareholders of record at the close of business on February 13, 2023. The dividend declared in the fourth quarter of 2022 was paid on November 30, 2022 to shareholders of record at the close of business on November 15, 2022.(5)Assets held for clients in an agency or fiduciary capacity which are not assets of the Company and therefore are not included in the consolidated financial statements.(6)As previously disclosed, the Company adopted CECL in the fourth quarter of 2022, effective as of January 1, 2022. See Form 10-K for more details on the CECL adoption and related effects to quarterly results for each quarter in the year ended December 31, 2022.(7)In the third quarter of 2023, includes $7.4 million and $0.6 million of provision for credit losses on loans and unfunded commitments (contingencies), respectively. For all other periods shown, includes provision for credit losses on loans. There was no provision for credit losses on unfunded commitments in the second quarter of 2023 and the fourth quarter of 2022. In the first quarter of 2023, the provision for credit losses on unfunded commitments was $0.3 million.(8)In the three months ended September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, net income excludes losses of $0.4 million, $0.3 million, $0.2 million and $0.2 million, respectively, attributable to a minority interest in Amerant Mortgage LLC.(9)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.(10)In all the periods shown, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. Potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in all the periods shown, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.(11)Operating data for the periods presented have been annualized.(12)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.(13)Calculated based upon the average daily balance of total assets.(14)Calculated based upon the average daily balance of stockholders’ equity.(15)Total revenue is the result of net interest income before provision for credit losses plus noninterest income.(16)Total stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.(17)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.(18)Tier 1 capital divided by quarter to date average assets.(19)CET1 capital divided by total risk-weighted assets.(20)Tangible common equity is calculated as the ratio of common equity less goodwill and other intangibles divided by total assetsless 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.(21)Calculated in the same manner described in footnote 19 but also includes unrealized losses on debt securities held to maturity in the balance of common equity and total assets.(22)Calculated as the ratio of total loans gross divided by total deposits.(23)Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans and other real estate owned (“OREO”) properties acquired through or in lieu of foreclosure, and other repossessed assets.(24)Non-performing loans include all accruing loans past due by 90 days or more and all nonaccrual loans(25)Calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for credit losses. During the third, second and first quarters of 2023, and in the fourth quarter of 2022, there were net charge offs of $14.6 million, $7.5 million , $10.8 million, and $9.8 million, respectively. During the third quarter of 2023, the Company charged-off $6.4 million related to multiple consumer loans, primarily purchased indirect consumer loans, and $9.3 million related to multiple commercial loans. During the second quarter of 2023, the Company charged-off $7.6 million related to multiple purchased indirect consumer loans and $1.5 million related to multiple commercial loans. During the first quarter of 2023, the Company charged-off $6.5 million in connection with a commercial loan relationship, $6.3 million related to multiple consumer loans and $1.5 million related to multiple commercial and real estate loans. During the fourth quarter of 2022, the Company charged-off $3.9 million related to a CRE loan, $5.5 million related to multiple consumer loans and $1.1 million related to multiple commercial loans.(26)Other operating expenses is the result of total noninterest expense less salary and employee benefits.(27)Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and NII.(28)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes 98, 93, 94 and 68 FTEs for Amerant Mortgage LLC, respectively.(29)Core efficiency ratio is the efficiency ratio less the effect of restructuring costs and other non-routine items, described in Exhibit 2 - Non-GAAP Financial Measures Reconciliation. Exhibit 2- Non-GAAP Financial Measures Reconciliation The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related to tax deductible restructuring costs, provision for (reversal of) credit losses, provision for income tax expense (benefit), the effect of non-core banking activities such as the sale of loans and securities and other repossessed assets, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments and other non-routine actions intended to improve customer service and operating performance. The Company believes these adjusted numbers are useful to understand the Company’s performance absent these transactions and events. Three Months Ended,(in thousands)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income attributable to Amerant Bancorp Inc. (1)$22,119 $7,308 $20,186 $21,973 Plus: provision for credit losses (1)(2) 8,000 29,077 11,700 16,857 Plus: provision for income tax expense (1) 6,337 1,873 5,301 5,627 Pre-provision net revenue (PPNR) 36,456 38,258 37,187 44,457 Plus: non-routine noninterest expense items 6,303 13,383 3,372 2,447 Less: non-routine noninterest income items (6,879) (12,445) (3,456) (9,066)Core pre-provision net revenue (Core PPNR)$35,880 $39,196 $37,103 $37,838 Total noninterest income$21,921 $26,619 $19,343 $24,365 Less: Non-routine noninterest income items: Derivatives (losses) gains, net (77) 242 14 1,040 Securities losses, net (54) (1,237) (9,731) (3,364)Gains on early extinguishment of FHLB advances, net 7,010 13,440 13,173 11,390 Total non-routine noninterest income items$6,879 $12,445 $3,456 $9,066 Core noninterest income$15,042 $14,174 $15,887 $15,299 Total noninterest expenses$64,420 $72,500 $64,733 $62,241 Less: non-routine noninterest expense items Restructuring costs (3): Staff reduction costs (4) 489 2,184 213 1,221 Contract termination costs (5) — 1,550 — — Consulting and other professional fees (6) — 2,060 2,690 1,226 Disposition of fixed assets (7) — 1,419 — — Branch closure expenses and related charges (8) 252 1,558 469 — Total restructuring costs$741 $8,771 $3,372 $2,447 Other non-routine noninterest expense items: Loans held for sale valuation expense (9) 5,562 — — — Loss on sale of repossessed assets (10) — 2,649 — — Impairment charge on investment carried at cost — 1,963 — — Total non-routine noninterest expense items$6,303 $13,383 $3,372 $2,447 Core noninterest expenses $58,117 $59,117 $61,361 $59,794 Three Months Ended, (in thousands, except percentages and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income attributable to Amerant Bancorp Inc. (1)$22,119 $7,308 $20,186 $21,973 Plus after-tax non-routine items in noninterest expense: Non-routine items in noninterest expense before income tax effect 6,303 13,383 3,372 2,447 Income tax effect (11) (1,486) (2,811) (708) (460)Total after-tax non-routine items in noninterest expense 4,817 10,572 2,664 1,987 Less after-tax non-routine items in noninterest income: Non-routine items in noninterest income before income tax effect (6,879) (12,445) (3,456) (9,066)Income tax effect (11) 1,607 2,613 726 1,923 Total after-tax non-routine items in noninterest income (5,272) (9,832) (2,730) (7,143)Core net income (1)$21,664 $8,048 $20,120 $16,817 Basic earnings per share (1)$0.66 $0.22 $0.60 $0.66 Plus: after tax impact of non-routine items in noninterest expense 0.14 0.31 0.08 0.06 Less: after tax impact of non-routine items in noninterest income (0.15) (0.29) (0.08) (0.22)Total core basic earnings per common share (1)$0.65 $0.24 $0.60 $0.50 Diluted earnings per share (1) (12)$0.66 $0.22 $0.60 $0.65 Plus: after tax impact of non-routine items in noninterest expense 0.14 0.31 0.08 0.06 Less: after tax impact of non-routine items in noninterest income (0.16) (0.29) (0.09) (0.21)Total core diluted earnings per common share (1)$0.64 $0.24 $0.59 $0.50 Net income / Average total assets (ROA) (1) 0.92% 0.31% 0.88% 0.97%Plus: after tax impact of non-routine items in noninterest expense 0.20% 0.45% 0.12% 0.09%Less: after tax impact of non-routine items in noninterest income(0.21)% (0.42)% (0.12)% (0.32)%Core net income / Average total assets (Core ROA) (1) 0.91% 0.34% 0.88% 0.74% Net income / Average stockholders' equity (ROE) (1) 11.93% 3.92% 11.15% 12.10%Plus: after tax impact of non-routine items in noninterest expense 2.60% 5.68% 1.47% 1.09%Less: after tax impact of non-routine items in noninterest income(2.84)% (5.28)% (1.51)% (3.93)%Core net income / Average stockholders' equity (Core ROE) (1) 11.69% 4.32% 11.11% 9.26% Efficiency ratio 64.10% 65.61% 63.67% 58.42%Less: impact of non-routine items in noninterest expense(6.27)% (12.11)% (3.32)% (2.30)%Plus: impact of non-routine items in noninterest income 4.25% 6.79% 2.12% 5.22%Core efficiency ratio 62.08% 60.29% 62.47% 61.34% Three Months Ended,(in thousands, except percentages, share data and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Stockholders' equity$719,787 $720,956 $729,056 $705,726 Less: goodwill and other intangibles (13) (26,818) (24,124) (24,292) (23,161)Tangible common stockholders' equity$692,969 $696,832 $704,764 $682,565 Total assets 9,345,700 9,519,526 9,495,302 9,127,804 Less: goodwill and other intangibles (13) (26,818) (24,124) (24,292) (23,161)Tangible assets$9,318,882 $9,495,402 $9,471,010 $9,104,643 Common shares outstanding 33,583,621 33,736,159 33,814,260 33,815,161 Tangible common equity ratio 7.44% 7.34% 7.44% 7.50%Stockholders' book value per common share$21.43 $21.37 $21.56 $20.87 Tangible stockholders' equity book value per common share$20.63 $20.66 $20.84 $20.19 Tangible common stockholders' equity$692,969 $696,832 $704,764 $682,565 Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (14) (26,138) (18,503) (15,542) (18,234)Tangible common stockholders' equity, adjusted for net unrealized accumulated losses on debt securities held to maturity$666,831 $678,329 $689,222 $664,331 Tangible assets$9,318,882 $9,495,402 $9,471,010 $9,104,643 Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (14) (26,138) (18,503) (15,542) (18,234)Tangible assets, adjusted for net unrealized accumulated losses on debt securities held to maturity$9,292,744 $9,476,899 $9,455,468 $9,086,409 Common shares outstanding 33,583,621 33,736,159 33,814,260 33,815,161 Tangible common equity ratio, adjusted for net unrealized accumulated losses on debt securities held to maturity 7.18% 7.16% 7.29% 7.31%Tangible stockholders' book value per common share, adjusted for net unrealized accumulated losses on debt securities held to maturity$19.86 $20.11 $20.38 $19.65 ____________(1)As previously disclosed, the Company adopted CECL in the fourth quarter of 2022, effective as of January 1, 2022. See Form 10-K for more details of the CECL adoption and related effects to quarterly results for each quarter in the year ended December 31, 2022.(2)In the third quarter of 2023, includes $7.4 million and $0.6 million of provision for credit losses on loans and unfunded commitments (contingencies), respectively. For all other periods shown, includes provision for credit losses on loans. There was no provision for credit losses on unfunded commitments in the second quarter of 2023 and the fourth quarter of 2022. In the first quarter of 2023, the provision for credit losses on unfunded commitments was $0.3 million.(3)Expenses incurred for actions designed to implement the Company’s business strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation of new technology system applications, decommissioning of legacy technologies, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities.(4)Staff reduction costs consist of severance expenses related to organizational rationalization.(5)Contract termination and related costs associated with third party vendors resulting from the Company’s engagement of FIS.(6)Includes expenses in connection with the engagement of FIS of $2.0 million, $2.6 million and $1.1 million in the three months ended June 30, 2023, March 31, 2023 and December 31, 2022, respectively.(7)Include expenses in connection with the disposition of fixed assets due to the write off of in-development software in the three months ended June 30, 2023.(8)In the three months ended September 30, 2023, consists of expenses in connection with the closure of a branch in Houston, Texas in 2023. In the three months ended June 30, 2023, consists of expenses associated with the closure of a branch in Miami, Florida in 2023, including $0.9 million of accelerated amortization of leasehold improvements and $0.6 million of right-of-use, or ROU asset impairment. In the three months ended March 31, 2023, includes $0.5 million of ROU asset impairment associated with the closure of a branch in Houston, Texas in 2023.(9)Fair value adjustment related to a New York-based CRE loan held for sale carried at the lower of fair value or cost.(10)In the three months ended June 30, 2023, amount represents the loss on sale of repossessed assets in connection with our equipment-financing activities.(11)In the three months ended March 31, 2023, amounts were calculated based upon the effective tax rate for the period of 21.00%. For all of the other periods shown, amounts represent the difference between the prior and current period year-to-date tax effect.(12)Potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. In all the periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect on per share earnings.(13)At September 30, 2023, other intangible assets primarily consist of naming rights and mortgage servicing rights (“MSRs”) of $2.7 million and $1.3 million, respectively. At June 30, 2023, March 31, 2023 and December 31, 2022, other intangible assets primarily consist of MSRs of $1.3 million, $1.4 million and $1.3 million, respectively. Other intangible assets are included in other assets in the Company’s consolidated balance sheets.(14)In the three months ended September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, amounts were calculated based upon the fair value on debt securities held to maturity, and assuming a tax rate of 25.51%, 25.46%, 25.53% and 25.55%, respectively. Exhibit 3 - Average Balance Sheet, Interest and Yield/Rate Analysis The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the periods presented. The average balances for loans include both performing and nonperforming balances. Interest income on loans includes the effects of discount accretion and the amortization of non-refundable loan origination fees, net of direct loan origination costs, accounted for as yield adjustments. Average balances represent the daily average balances for the periods presented. Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ Rates Average BalancesIncome/ExpenseYield/ RatesInterest-earning assets: Loan portfolio, net (1)(2)$7,048,891$120,2446.77% $7,068,034$119,5706.79% $6,021,294$76,7795.06%Debt securities available for sale (3) (4) 1,052,147 10,9244.12% 1,041,039 10,3974.01% 1,110,153 8,3792.99%Debt securities held to maturity (5) 232,146 1,9583.35% 236,297 1,9763.35% 235,916 1,9213.23%Debt securities held for trading 2,048 40.77% 262 34.59% 65 16.10%Equity securities with readily determinable fair value not held for trading 2,479 213.36% 27 ——% 12,018 ——%Federal Reserve Bank and FHLB stock 54,056 9617.05% 52,917 8576.50% 49,398 6054.86%Deposits with banks 344,015 5,2486.05% 379,123 5,6946.02% 258,237 1,4522.23%Other short-term investments 1,964 234.65% — ——% — ——%Total interest-earning assets 8,737,746 139,3836.33% 8,777,699 138,4976.33% 7,687,081 89,1374.60%Total non-interest-earning assets (6) 756,141 710,404 639,118 Total assets$9,493,887 $9,488,103 $8,326,199 Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ Rates Average BalancesIncome/ExpenseYield/ RatesInterest-bearing liabilities: Checking and saving accounts Interest bearing DDA$2,523,092 $16,6682.62% $2,641,746 $16,6782.53% $2,077,321 $4,9340.94%Money market 1,144,580 11,0133.82% 1,169,047 9,4013.23% 1,363,799 3,5551.03%Savings 280,096 320.05% 287,493 360.05% 320,861 540.07%Total checking and saving accounts 3,947,768 27,7132.79% 4,098,286 26,1152.56% 3,761,981 8,5430.90%Time deposits 2,201,138 22,4824.05% 2,045,747 18,5283.63% 1,247,084 4,7171.50%Total deposits 6,148,906 50,1953.24% 6,144,033 44,6432.91% 5,009,065 13,2601.05%Securities sold under agreements to repurchase 326 44.87% 60 16.68% — ——%Advances from the FHLB (7) 800,978 8,2074.07% 828,301 7,6213.69% 866,639 3,9771.82%Senior notes 59,409 9426.29% 59,330 9416.36% 59,092 9416.32%Subordinated notes 29,391 3614.87% 29,348 3624.95% 29,220 3624.92%Junior subordinated debentures 64,178 1,0976.78% 64,178 1,0526.57% 64,178 7004.33%Total interest-bearing liabilities 7,103,188 60,8063.40% 7,125,250 54,6203.07% 6,028,194 19,2401.27%Non-interest-bearing liabilities: Non-interest bearing demand deposits 1,335,041 1,332,189 1,316,988 Accounts payable, accrued liabilities and other liabilities 320,369 283,653 245,425 Total non-interest-bearing liabilities 1,655,410 1,615,842 1,562,413 Total liabilities 8,758,598 8,741,092 7,590,607 Stockholders’ equity 735,289 747,011 735,592 Total liabilities and stockholders' equity$9,493,887 $9,488,103 $8,326,199 Excess of average interest-earning assets over average interest-bearing liabilities$1,634,558 $1,652,449 $1,658,887 Net interest income $78,577 $83,877 $69,897 Net interest rate spread 2.93% 3.26% 3.33%Net interest margin (8) 3.57% 3.83% 3.61%Cost of total deposits (9) 2.66% 2.40% 0.83%Ratio of average interest-earning assets to average interest-bearing liabilities 123.01% 123.19% 127.52% Average non-performing loans/ Average total loans 0.56% 0.54% 0.42% Nine Months Ended September 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ RatesInterest-earning assets: Loan portfolio, net (1)(2)$7,006,633 $348,3156.65% $5,718,264 $194,6314.55%Debt securities available for sale (3)(4) 1,050,648 31,4944.01% 1,130,231 23,3712.76%Debt securities held to maturity (5) 236,325 6,0463.42% 176,462 3,6052.73%Debt securities held for trading 783 61.02% 67 35.99%Equity securities with readily determinable fair value not held for trading 2,455 211.14% 8,615 ——%Federal Reserve Bank and FHLB stock 54,911 2,8336.90% 50,118 1,6904.51%Deposits with banks 342,127 14,2725.58% 247,401 2,1021.14%Other short-term investments 662 234.65% — ——%Total interest-earning assets (6) 8,694,544 403,0106.20% 7,331,158 225,4024.11%Total non-interest-earning assets less allowance for loan losses 735,943 592,087 Total assets$9,430,487 $7,923,245 Interest-bearing liabilities: Checking and saving accounts - Interest bearing DDA$2,503,147 $46,2012.47% $1,769,001 $6,2580.47%Money market 1,215,005 28,2953.11% 1,293,748 5,6390.58%Savings 288,959 1140.05% 321,634 800.03%Total checking and saving accounts 4,007,111 74,6102.49% 3,384,383 11,9770.47%Time deposits 2,006,417 53,8443.59% 1,265,982 13,5011.43%Total deposits 6,013,528 128,4542.86% 4,650,365 25,4780.73%Securities sold under agreements to repurchase 130 55.14% 20 ——%Advances from the FHLB (7) 862,310 22,5913.50% 883,566 9,7991.48%Senior notes 59,330 2,8256.37% 59,014 2,8256.40%Subordinated notes 29,349 1,0844.94% 22,030 8114.92%Junior subordinated debentures 64,178 3,2646.80% 64,178 2,0024.17%Total interest-bearing liabilities 7,028,825 158,2233.01% 5,679,173 40,9150.96%Non-interest-bearing liabilities: Non-interest bearing demand deposits 1,348,242 1,275,689 Accounts payable, accrued liabilities and other liabilities 313,967 209,123 Total non-interest-bearing liabilities 1,662,209 1,484,812 Total liabilities 8,691,034 7,163,985 Stockholders’ equity 739,453 759,260 Total liabilities and stockholders' equity$9,430,487 $7,923,245 Excess of average interest-earning assets over average interest-bearing liabilities$1,665,719 $1,651,985 Net interest income $244,787 $184,487 Net interest rate spread 3.19% 3.15%Net interest margin (8) 3.76% 3.36%Cost of total deposits (9) 2.33% 0.57%Ratio of average interest-earning assets to average interest-bearing liabilities 123.70% 129.09% Average non-performing loans/ Average total loans 0.48% 0.56% ___________(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 $101.2 million, $84.6 million, and $51.9 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $89.1 million and $58.4 million in the nine months ended September 30, 2023 and 2022, respectively. The average balance of total loans held for sale was $58.8 million, $85.1 million and $142.5 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $70.1 million and $130.8 million in the nine months ended September 30, 2023 and 2022, respectively.(2)Includes average non-performing loans of $39.8 million, $38.5 million and $25.3 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, $34.1 million and $32.4 million in the nine months ended September 30, 2023 and 2022, 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 $119.8 million, $106.7 million, and $72.4 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $110.5 million and $42.9 million in the nine months ended September 30, 2023 and 2022, respectively.(4)Includes nontaxable securities with average balances of $18.6 million, $19.5 million and $17.1 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $18.6 million in each of the nine months ended September 30, 2023 and 2022. The tax equivalent yield for these nontaxable securities was 4.34%, 4.53% and 2.69% for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and 4.64% and 3.67% in the nine months ended September 30, 2023 and 2022, respectively. In 2023 and 2022, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.(5)Includes nontaxable securities with average balances of $49.6 million, $50.1 million and $41.9 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $50.1 million and $42.9 million for the nine months ended September 30, 2023 and 2022, respectively. The tax equivalent yield for these nontaxable securities was 4.26%, 4.16% and 3.48% for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and 4.21% and 3.31% for the nine months ended September 30, 2023 and 2022, respectively. In 2023 and 2022, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.(6)Excludes the allowance for credit losses.(7)The terms of the FHLB advance agreements require the Bank to maintain certain investment securities or loans as collateral for these advances.(8)NIM is defined as net interest income divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.(9)Calculated based upon the average balance of total noninterest bearing and interest bearing deposits. Exhibit 4 - Noninterest Income This table shows the amounts of each of the categories of noninterest income for the periods presented. Three Months Ended Nine Months Ended September 30, September 30, 2023 June 30, 2023 September 30, 2022 2023 2022 (in thousands, except percentages)Amount % Amount % Amount % Amount% Amount% Deposits and service fees$5,053 23.1% $4,944 18.6% $4,629 29.0% $14,952 22.0% $13,826 32.2%Brokerage, advisory and fiduciary activities 4,370 19.9% 4,256 16.0% 4,619 29.0% 12,808 18.9% 13,654 31.8%Change in cash surrender value of bank owned life insurance (“BOLI”)(1) 1,483 6.8% 1,429 5.4% 1,352 8.5% 4,324 6.4% 4,028 9.4%Cards and trade finance servicing fees 734 3.4% 562 2.1% 622 3.9% 1,829 2.7% 1,720 4.0%Gain (loss) on early extinguishment of FHLB advances, net 7,010 32.0% 13,440 50.5% — —% 33,623 49.5% (712)(1.7)%Securities losses, net (2) (54) (0.3)% (1,237) (4.7)% 1,508 9.5% (11,022)(16.2)% (325)(0.8)%Loan-level derivative income (3) 1,196 5.5% 476 1.8% 2,786 17.5% 3,743 5.5% 6,947 16.2%Derivative (losses) gains, net (4) (77) (0.4)% 242 0.9% (95) (0.6)% 179 0.3% (585)(1.4)%Other noninterest income (5) 2,206 10.0% 2,507 9.4% 535 3.2% 7,447 10.9% 4,359 10.3%Total noninterest income$21,921 100.0% $26,619 100.0% $15,956 100.0% $67,883 100.0% $42,912 100.0% __________________(1)Changes in cash surrender value of BOLI are not taxable.(2)Includes net loss of $1.2 million and net gains of $22 thousand in the three months ended June 30, 2023 and September 30, 2022, respectively, and net loss of $10.8 million and net gain of $0.1 million in the nine months ended September 30, 2023 and 2022, respectively, in connection with the sale of debt securities available for sale. There were no significant gains and losses in connection with the sale of debt securities available for sale in the three months ended September 30, 2023. In addition, includes unrealized losses of $0.1 million and unrealized gains of $1.5 million in the three months ended September 30, 2023 and 2022, respectively, and unrealized losses of $0.1 million and $0.4 million in the nine months ended September 30, 2023 and 2022, respectively, related to the change in fair value of equity securities with readily available fair value not held for trading which are recorded in results of the period. There were no significant unrealized losses related to equity securities with readily available fair value not held for trading in the three months ended June 30, 2023. Also, in the nine months ended September 30, 2023, the Company sold equity securities with readily available fair value not held for trading, with a total fair value of $11.2 million at the time of sale, and recognized a net loss of $0.2 million in connection with this transaction.(3)Income from interest rate swaps and other derivative transactions with customers. The Company incurred expenses related to derivative transactions with customers of $18.0 thousand, $0.1 million and $1.8 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $1.7 million and $4.9 million in the nine months ended September 30, 2023 and 2022, respectively, which are included as part of noninterest expenses under loan-level derivative expense.(4)Net unrealized gains and losses related to uncovered interest rate caps with clients.(5)Includes mortgage banking income of $0.5 million, $1.6 million and $0.1 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $3.9 million and $3.2 million in the nine months ended September 30, 2023 and 2022, respectively, related to Amerant Mortgage. In addition, includes rental income from operating leases of $0.3 million and $0.4 million in the three months ended September 30, 2023 and June 30, 2023, respectively, and $0.7 million in the nine months ended September 30, 2023. 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 Nine Months Ended September 30, September 30, 2023 June 30, 2023 September 30, 2022 2023 2022 (in thousands, except percentages)Amount % Amount % Amount % Amount% Amount% Salaries and employee benefits (1)$31,334 48.6% $34,24747.2% $30,10953.7% $100,45749.8% $90,72450.6%Occupancy and equipment (2) 7,293 11.3% 6,7379.3% 6,55911.7% 20,82810.3% 21,04411.8%Professional and other services fees (3) 5,325 8.3% 7,41510.2% 5,0459.0% 20,36810.1% 15,9188.9%Loan-level derivative expense (4) 18 —% 1100.2% 1,8103.2% 1,7280.9% 4,8652.7%Telecommunications and data processing (5) 3,556 5.5% 5,0276.9% 3,8616.9% 11,6475.8% 11,1136.2%Depreciation and amortization (6) 1,795 2.8% 2,2753.1% 1,4812.6% 5,3622.7% 3,9272.2%FDIC assessments and insurance 2,590 4.0% 2,7393.8% 1,7463.1% 8,0664.0% 4,6682.6%Loans held for sale valuation expense (7) 5,562 8.6% ——% ——% 5,5622.8% 1590.1%Advertising expenses 2,724 4.2% 4,3326.0% 2,0663.7% 9,6424.8% 8,2914.6%Other real estate owned and repossessed assets (income) expense, net (8)(9) (134)(0.2)% 2,4313.4% 2340.4% 2,2971.1% 3,4081.9%Contract termination costs (10) — —% 1,5502.1% 2890.5% 1,5500.8% 7,1034.0%Other operating expenses (11) 4,357 6.9% 5,6377.8% 2,9135.2% 14,1466.9% 7,9524.4%Total noninterest expense (12)$64,420 100.0% $72,500100.0% $56,113100.0% $201,653100.0% $179,172100.0% __________________(1)Includes staff reduction costs of $0.5 million, $2.2 million and $0.4 million in the three months ended September 30, 2023 June 30, 2023 and September 30, 2022, respectively, and $2.9 million and $1.8 million in the nine months ended September 30, 2023 and 2022, respectively, which consist of severance expenses primarily related to organizational rationalization.(2)In each of the three and the nine month periods ended September 30, 2023, includes a rent termination fee of $0.3 million in connection with the closure of a branch in Houston, Texas. In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes $0.6 million related to ROU asset impairment in connection with the closure of a branch in Miami, Florida in 2023. In addition, in the nine months ended September 30, 2023, includes $0.5 million related to ROU asset impairment in connection with the closure of a branch in Houston, Texas in 2023. In the nine months ended September 30, 2022, includes ROU asset impairment charge of $1.6 million in connection with the closure of a branch in Pembroke Pines, Florida in 2022. There were no ROU asset impairment charges in connection with branch closures in the three months ended September 30, 2023 and 2022.(3)Includes additional expenses of $2.0 million and $1.0 million in the three months ended June 30, 2023 and September 30, 2022, respectively, and $4.6 million and $1.8 million in the nine months ended September 30, 2023 and 2022, respectively, related to the engagement of FIS.(4)Includes services fees in connection with our loan-level derivative income generation activities.(5)Includes a charge of $1.4 million in each of the three months ended June 30, 2023 and the nine months ended September 30, 2023 related to the disposition of fixed assets due to the write off of in-development software.(6)Includes a charge of $0.9 million in each of the three months ended June 30, 2023 and the nine months ended September 30, 2023 for the accelerated depreciation of leasehold improvements in connection with the closure of a branch in Miami, Florida in 2023.(7)Valuation allowance as a result of changes in the fair value of loans held for sale carried at the lower of cost or fair value.(8)In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes a loss on sale of repossessed assets in connection with our equipment-financing activities of $2.6 million. In the three and nine month periods ended September 30, 2022, includes $0.2 million and $3.4 million, respectively, related to the fair value adjustment of one other real estate owned (“OREO”) property in New York. In addition, in the three months ended September 30, 2023 and June 30, 2023, and the nine months ended September 30, 2023, includes OREO rental income of $0.4 million, $0.4 million, and $0.9 million, respectively. We had no OREO rental income in the three and nine month periods ended September 30, 2022.(9)Beginning in the three months ended June 30, 2023, OREO and repossessed assets expense is presented separately in the Company’s consolidated statement of operations and comprehensive (loss) income. In 2022, while OREO valuation expense was presented separately, all other OREO-related expenses were presented as part of other operating expenses in the Company’s consolidated statement of operations and comprehensive (loss) income. We had no other repossessed assets in 2022.(10)Contract termination and related costs associated with third party vendors resulting from the Company’s transition to our new technology provider.(11)In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes an impairment charge of $2.0 million related to an investment carried at cost and included in other assets. In addition, in all of the periods shown, includes 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.(12)Includes $3.0 million, $4.0 million and $2.7 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $10.9 million and $9.8 million in the nine months ended September 30, 2023 and 2022, respectively, related to Amerant Mortgage, primarily consisting of salaries and employee benefits, mortgage lending costs and professional and other services fees. Exhibit 6 - Consolidated Balance Sheets (in thousands, except share data)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Assets (audited)Cash and due from banks$48,145 $45,184 $41,489 $19,486 Interest earning deposits with banks 202,946 365,673 411,747 228,955 Restricted cash 51,837 34,204 32,541 42,160 Other short-term investments 6,024 — — — Cash and cash equivalents 308,952 445,061 485,777 290,601 Securities Debt securities available for sale, at fair value 1,033,797 1,027,676 1,045,883 1,057,621 Debt securities held to maturity, at amortized cost (estimated fair value of $195,165, $209,546, $218,388 and $217,609 at September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively) 230,254 234,369 239,258 242,101 Trading securities — 298 — — Equity securities with readily determinable fair value not held for trading 2,438 2,500 — 11,383 Federal Reserve Bank and Federal Home Loan Bank stock 47,878 50,460 62,556 55,575 Securities 1,314,367 1,315,303 1,347,697 1,366,680 Loans held for sale, at lower of fair value or cost (1) 43,257 — — — Mortgage loans held for sale, at fair value 25,952 49,942 65,289 62,438 Loans held for investment, gross 7,073,387 7,167,016 7,049,746 6,857,194 Less: Allowance for credit losses 98,773 105,956 84,361 83,500 Loans held for investment, net 6,974,614 7,061,060 6,965,385 6,773,694 Bank owned life insurance 232,736 231,253 229,824 228,412 Premises and equipment, net 43,004 43,714 42,380 41,772 Deferred tax assets, net 63,501 56,779 46,112 48,703 Operating lease right-of-use assets 116,763 116,161 119,503 139,987 Goodwill 20,525 20,525 20,525 19,506 Accrued interest receivable and other assets (2) 202,029 179,728 172,810 156,011 Total assets$9,345,700 $9,519,526 $9,495,302 $9,127,804 Liabilities and Stockholders' Equity Deposits Demand Noninterest bearing$1,370,157 $1,293,522 $1,360,626 $1,367,664 Interest bearing 2,416,797 2,773,120 2,489,565 2,300,469 Savings and money market 1,457,080 1,431,375 1,507,195 1,647,811 Time 2,302,878 2,081,554 1,929,340 1,728,255 Total deposits 7,546,912 7,579,571 7,286,726 7,044,199 Advances from the Federal Home Loan Bank 595,000 770,000 1,052,012 906,486 Senior notes 59,447 59,368 59,289 59,210 Subordinated notes 29,412 29,369 29,326 29,284 Junior subordinated debentures held by trust subsidiaries 64,178 64,178 64,178 64,178 Operating lease liabilities (3) 120,665 119,921 122,214 140,147 Accounts payable, accrued liabilities and other liabilities (4) 210,299 176,163 152,501 178,574 Total liabilities 8,625,913 8,798,570 8,766,246 8,422,078 Stockholders’ equity Class A common stock 3,359 3,374 3,383 3,382 Additional paid in capital 194,103 195,275 194,782 194,694 Retained earnings 630,933 611,829 607,544 590,375 Accumulated other comprehensive loss (105,634) (86,926) (74,319) (80,635)Total stockholders' equity before noncontrolling interest 722,761 723,552 731,390 707,816 Noncontrolling interest (2,974) (2,596) (2,334) (2,090)Total stockholders' equity 719,787 720,956 729,056 705,726 Total liabilities and stockholders' equity$9,345,700 $9,519,526 $9,495,302 $9,127,804 __________(1)As of September 30, 2023, includes a valuation allowance of $5.6 million as a result of fair value adjustment.(2)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes derivative assets with a total fair value of $87.1 million, $75.8 million, $60.8 million and $78.3 million, respectively.(3)Consists of total long-term lease liabilities. Total short-term lease liabilities are included in other liabilities.(4)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes derivatives liabilities with a total fair value of $85.6 million, $74.5 million, $59.5 million and $77.2 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)September 30,2023 June 30,2023 March 31,2023 December 31,2022Real estate loans Commercial real estate Non-owner occupied$1,593,571 $1,645,224 $1,630,451 $1,615,716Multi-family residential 771,654 764,712 796,125 820,023Land development and construction loans 301,938 314,010 303,268 273,174 2,667,163 2,723,946 2,729,844 2,708,913Single-family residential 1,371,194 1,285,857 1,189,045 1,102,845Owner occupied 1,129,921 1,063,240 1,069,491 1,046,450 5,168,278 5,073,043 4,988,380 4,858,208Commercial loans (1) 1,452,759 1,577,209 1,497,649 1,381,234Loans to financial institutions and acceptances 13,353 13,332 13,312 13,292Consumer loans and overdrafts (2) 438,997 503,432 550,405 604,460Total loans$7,073,387 $7,167,016 $7,049,746 $6,857,194 __________________(1)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes approximately $49.3 million, $47.7 million, $46.7 million and $45.3 million, respectively, in commercial loans and leases originated under a white-label equipment financing solution launched in the second quarter of 2022.(2)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes $254.7 million, $312.3 million, $372.2 million and $433.3 million, respectively, in consumer loans purchased under indirect lending programs. In addition, as of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes $57.5 million, $61.8 million, $62.1 million and $43.8 million, respectively, in consumer loans originated under a white-label program. Loans by Type - Held For Sale The loan portfolio held for sale consists of the following loan classes: (in thousands)September 30,2023 June 30,2023 March 31,2023 December 31,2022Loans held for sale at the lower of fair value or cost (audited)Real estate loans Commercial real estate Non-owner occupied$43,256 $— $— $—Total loans held for sale at the lower of fair value or cost (1) 43,256 — — — Loans held for sale at fair value Land development and construction loans (2) 6,931 3,726 15,527 9,424Single-family residential (3) 19,022 46,216 49,762 53,014Total loans held for sale at fair value (4) 25,953 49,942 65,289 62,438Total loans held for sale (5)$69,209 $49,942 $65,289 $62,438 __________________(1)In the third quarter of 2023, the Company transferred a New York-based CRE loan held for investment to the loans held for sale category, and recognized a valuation allowance of $5.6 million as a result of the fair value adjustment of this loan.(2)In the second quarter of 2023, the Company transferred approximately $13 million in land development and construction loans held for sale to the loans held for investment category.(3)In the third and second quarters of 2023, the Company transferred approximately $17 million and $28 million, respectively, in single-family residential loans held for sale to the loans held for investment category.(4)Loans held for sale in connection with Amerant Mortgage’s ongoing business.(5)Remained current and in accrual status at each of the periods shown. Non-Performing Assets This table shows a summary of our non-performing assets by loan class, which includes non-performing loans, other real estate owned, or OREO, and other repossessed assets at the dates presented. Non-performing loans consist of (i) nonaccrual loans, and (ii) accruing loans 90 days or more contractually past due as to interest or principal. (in thousands)September 30,2023 June 30,2023 March 31,2023 December 31,2022Non-Accrual Loans(1) (audited)Real Estate Loans Commercial real estate (CRE) Non-owner occupied$— $1,696 $— $20,057Multi-family residential 23,344 24,306 — — 23,344 26,002 — 20,057Single-family residential 2,533 1,681 1,367 1,526Owner occupied (2) 2,100 6,890 7,118 6,270 27,977 34,573 8,485 27,853Commercial loans (2)(3) 4,713 12,241 13,643 9,271Consumer loans and overdrafts (4) 1 1 1 4Total Non-Accrual Loans$32,691 $46,815 $22,129 $37,128 Past Due Accruing Loans(5) Real Estate Loans Commercial real estate (CRE) Single-family residential — 302 — 253Commercial 504 — — 183Consumer loans and overdrafts — 78 53 35Total Past Due Accruing Loans$504 $380 53 $471Total Non-Performing Loans 33,195 47,195 22,182 37,599OREO and other repossessed assets 20,181 20,181 26,534 —Total Non-Performing Assets$53,376 $67,376 $48,716 $37,599 __________________(1)Prior to the first quarter of 2023, included loan modifications that met the definition of troubled debt restructurings, or TDR, which may be performing in accordance with their modified loan terms.(2)In the third quarter of 2023, the Company sold a loan relationship in nonaccrual status and classified as Substandard with a total carrying value of $8.6 million at the time of sale. This loan relationship included a commercial loan of $4.6 million and multiple owner occupied loans totaling $4.0 million. The Company charged-off $2.1 million against the ACL in the third quarter of 2023 in connection with this sale, which had already been reserved in a prior period. Therefore, this transaction had no impact to the Company’s results of operations in the third quarter of 2023.(3)In the second quarter of 2023, we collected $2.8 million in full satisfaction of a commercial loan relationship in nonaccrual status and classified as Substandard at March 31, 2023.(4)In the fourth quarter of 2022, the Company changed its charge-off policy for unsecured consumer loans from 120 to 90 days past due. This change resulted in an additional $3.4 million in charge-offs for unsecured consumer loans in the fourth quarter of 2022.(5)Loans past due 90 days or more but still accruing. Loans by Credit Quality Indicators This table shows the Company’s loans by credit quality indicators. The Company has not purchased credit-impaired loans. September 30, 2023 June 30, 2023 September 30, 2022 (in thousands)Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1)Real Estate Loans Commercial Real Estate (CRE) Non-owner occupied$—$—$—$— $8,301$1,753$—$10,054 $37,364$—$—$37,364Multi-family residential — 23,344 — 23,344 — 24,306 — 24,306 — — — —Land development and construction loans — — — — 6,497 — — 6,497 — — — — — 23,344 — 23,344 14,798 26,059 — 40,857 37,364 — — 37,364Single-family residential — 3,085 — 3,085 — 2,154 — 2,154 — 1,717 — 1,717Owner occupied (2) 2,234 2,180 — 4,414 2,236 6,972 — 9,208 — 6,445 — 6,445 2,234 28,609 — 30,843 17,034 35,185 — 52,219 37,364 8,162 — 45,526Commercial loans (2)(3) 26,975 5,732 3 32,710 13,029 13,312 3 26,344 1,800 10,942 3 12,745Consumer loans and overdrafts — 1 — 1 — 70 — 70 — 947 — 947Totals$29,209$34,342$3$63,554 $30,063$48,567$3$78,633 $39,164$20,051$3$59,218 __________________(1)There were no loans categorized as “loss” as of the dates presented.(2)In the third quarter of 2023, the Company sold a loan relationship in nonaccrual status and classified as Substandard with a total carrying value of $8.6 million at the time of sale. This loan relationship included a commercial loan of $4.6 million and multiple owner occupied loans totaling $4.0 million. The Company charged-off $2.1 million against the ACL in the third quarter of 2023 in connection with this sale, which had already been reserved in a prior period. Therefore, this transaction had no impact to the Company’s results of operations in the third quarter of 2023.(3)In the second quarter of 2023, we collected $2.8 million in full satisfaction of a commercial loan relationship in nonaccrual status and classified as Substandard at March 31, 2023. 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)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 (audited) Domestic$5,067,937 $5,113,604 $4,891,873 $4,620,906 Foreign: Venezuela 1,892,453 1,912,994 1,897,199 1,911,551 Others 586,522 552,973 497,654 511,742 Total foreign 2,478,975 2,465,967 2,394,853 2,423,293 Total deposits$7,546,912 $7,579,571 $7,286,726 $7,044,199 CONTACTS:InvestorsLaura RossiInvestorRelations@amerantbank.com(305) 460-8728 MediaVictoria VerdejaMediaRelations@amerantbank.com(305) 441-5541
CORAL GABLES, Fla., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Amerant Bancorp Inc. (NYSE: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $22.1 million in the third quarter of 2023, or $0.66 per diluted share, compared to net income attributable to the Company of $7.3 million, or $0.22 per diluted share, in the second quarter of 2023. “We are pleased to report significantly improved operating results this quarter,” stated Jerry Plush, Chairman and CEO. “Our team members continued to focus on “deposits first” as the top strategic priority, and by originating strong organic deposit growth again this quarter, that enabled us to further reduce higher cost institutional deposits. In the fourth quarter, we look forward to completing the long-awaited systems conversion and then being able to fully focus our efforts on business development and customer service.” Total assets were $9.3 billion, a decrease of $173.8 million, or 1.8%, compared to 2Q23. Total gross loans were $7.14 billion, a decrease of $74.4 million, or 1.0%, compared to $7.22 billion in 2Q23. Total gross loans includes $69.2 million in held for sale loans out of which $43.3 million are related to a NYC commercial real estate loan transferred in 3Q23 from loans held for investment at the lower of its estimated fair value or cost, and mortgage loans at their estimated fair value totaling $26.0 million.Cash and cash equivalents were $309.0 million, down $136.1 million, or 30.6%, compared to $445.1 million in 2Q23.Total deposits were $7.55 billion, down $32.7 million, or 0.4%, compared to $7.58 billion in 2Q23. Organic deposit growth was $208 million, which helped enable reductions in higher-cost institutional deposits of $292 million. Time deposits increased $221.3 million as customers continued to seek higher returns on deposits. This includes an increase in brokered time deposits in the amount of $92.4 million, a strategic move to obtain 2 to 5 year funding, as part of asset/liability management.Total advances from Federal Home Loan Bank (“FHLB”) were $595.0 million, down $175.0 million, or 22.7%, compared to $770.0 million in 2Q23, the result of early repayment of $225.0 million during the quarter. The Bank had an additional $2.3 billion in availability from the FHLB as of September 30, 2023.Average yield on loans decreased to 6.77% in 3Q23, compared to 6.79% in 2Q23.Total non-performing assets decreased to $53.4 million, down $14.0 million, or 20.8%, compared to $67.4 million as of 2Q23.The allowance for credit losses ("ACL") was $98.8 million, a decrease of $7.2 million, or 6.8%, compared to $106.0 million as of 2Q23.Core deposits were $5.24 billion, down $254.0 million, or 4.6%, compared to $5.50 billion in 2Q23. Non-interest bearing deposits increased $76.6 million, or 5.9%, to $1.37 billion in 3Q23 compared to $1.29 billion in 2Q23. Average cost of total deposits increased to 2.66% in 3Q23 compared to 2.40% in 2Q23. Loan to deposit ratio improved to 94.64% in 3Q23 compared to 95.22% in 2Q23.Assets Under Management and custody (“AUM”) totaled $2.09 billion, down $55.3 million, or 2.6%, from $2.15 billion in 2Q23.Pre-provision net revenue (“PPNR”)(1) was $36.5 million in 3Q23, a decrease of $1.8 million or 4.7%, compared to $38.3 million in 2Q23.Net Interest Margin (“NIM”) was 3.57% in 3Q23 compared to 3.83% in 2Q23.Net Interest Income (“NII”) was $78.6 million, down $5.3 million, or 6.3%, from $83.9 million in 2Q23. Provision for credit losses was $8.0 million in 3Q23, down $21.1 million, or 72.5%, compared to $29.1 million in 2Q23. The provision for credit losses in 3Q23 was comprised of $7.6 million to cover charge-offs, $1.4 million due to loan composition and volume changes and $0.6 million added to the provision for credit contingencies, which is recorded in other liabilities. These provision requirements were offset by a $0.4 million release due to credit quality and factor updates and a $1.2 million release due to recoveries.Non-interest income was $21.9 million in 3Q23, down $4.7 million, or 17.6%, from $26.6 million in 2Q23. 3Q23 included $6.9 million in non-routine net gains compared to $12.4 million in 2Q23.Non-interest expense was $64.4 million, down $8.1 million, or 11.1%, from $72.5 million in 2Q23. 3Q23 included $6.3 million in non-routine non-interest expenses compared to $13.4 million in 2Q23. The efficiency ratio was 64.1% in 3Q23 compared to 65.6% in 2Q23.Return on average assets (“ROA”) was 0.92% in 3Q23 compared to 0.31% in 2Q23.Return on average equity (“ROE”) was 11.93% in 3Q23 compared to 3.92% in 2Q23. Repurchased 142,888 shares for $2.7 million during 3Q23. As of September 30, 2023, repurchases totaled 259,853 shares for $4.9 million; $20 million remains available of $25 million Class A common stock share repurchase program. Additional details on third quarter 2023 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. On October 18, 2023, the Company’s board of directors declared a quarterly cash dividend of $0.09 per common share. The dividend is payable on November 30, 2023 to shareholders of record on November 14, 2023. 1 Non-GAAP measure, see “Non-GAAP Financial Measures” for more information and Exhibit 2 for a reconciliation to GAAP measures. Third Quarter 2023 Earnings Conference Call The Company will hold an earnings conference call on Friday, October 20, 2023 at 9:00 a.m. (Eastern Time) to discuss its third quarter 2023 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the Company’s website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link. About Amerant Bancorp Inc. (NYSE: AMTB) Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S. with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the largest community bank headquartered in Florida. The Bank operates 23 banking centers – 17 in South Florida and 6 in the Houston, Texas area, as well as an LPO in Tampa, Florida. For more information, visit investor.amerantbank.com. FIS® and any associated brand names/logos are the trademarks of FIS and/or its affiliates. Cautionary Notice Regarding Forward-Looking Statements This press release contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “goals,” “outlooks,” “modeled,” “dedicated,” “create,” and other similar words and expressions of the future. Forward-looking statements, including those relating to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2022 filed on March 1, 2023 (the “Form 10-K”), our quarterly report on Form 10-Q for the quarter ended March 31, 2023 filed on May 2, 2023, 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 and nine month periods ended September 30, 2023 and 2022, may not reflect our results of operations for our fiscal year ending, or financial condition, as of December 31, 2023, or any other period of time or date. As previously disclosed in the Form 10-K, the Company adopted the new guidance on accounting for current expected credit losses on financial instruments (“CECL”) effective as of January 1, 2022. Quarterly amounts previously reported on our quarterly reports on Form 10-Q for the periods ended March 31, 2022, June 30, 2022 and September 30, 2022 do not reflect the adoption of CECL. In the fourth quarter of 2022, the Company recorded a provision for credit losses totaling $20.9 million, including $11.1 million related to the retroactive effect of adopting CECL for all previous quarterly periods in the year ended December 31, 2022, including loan growth and changes to macro-economic conditions during the period. Quarterly amounts included in the Form 10-K and this earnings release and accompanying presentation reflect the impacts of the adoption of CECL on each interim period of 2022. See the Form 10-K for more details on the adoption of CECL. The following table shows changes to previously-reported amounts for the quarter ended December 31, 2022 versus the corresponding amounts reflecting the adoption of CECL in 2022: (in thousands, except per share amounts)As Reported As Recast ChangesTotal interest income$113,374 $113,374 $— Total interest expense 31,196 31,196 — Net interest income 82,178 82,178 — Provision for credit losses 20,945 16,857 (4,088)Net interest income after provision for credit losses 61,233 65,321 4,088 Total noninterest income 24,365 24,365 — Total noninterest expense 62,241 62,241 — Income before income taxes 23,357 27,445 4,088 Income tax expense (4,746) (5,627) (881)Net income before attribution of noncontrolling interest 18,611 21,818 3,207 Noncontrolling interest (155) (155) — Net income attributable to Amerant Bancorp Inc.$18,766 $21,973 $3,207 Basic earnings per common share$0.56 $0.66 $0.10 Diluted earnings per common share$0.55 $0.65 $0.10 Cash dividends declared per common share$0.09 $0.09 $— Non-GAAP Financial Measures The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with non-GAAP financial measures, such as “pre-provision net revenue (PPNR)”, “core pre-provision net revenue (Core PPNR)”, “core noninterest income”, “core noninterest expenses”, “core net income”, “core earnings per share (basic and diluted)”, “core return on assets (Core ROA)”, “core return on equity (Core ROE)”, “core efficiency ratio”, “tangible stockholders’ equity (book value) per common share”, “tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity”, and “tangible stockholders' equity (book value) per common share, adjusted for unrealized losses on debt securities held to maturity”. This supplemental information is not required by, or is not presented in accordance with GAAP. The Company refers to these financial measures and ratios as “non-GAAP financial measures” and they should not be considered in isolation or as a substitute for the GAAP measures presented herein. We use certain non-GAAP financial measures, including those mentioned above, both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our past performance and prospects for future performance, especially in light of the additional costs we have incurred in connection with the Company’s restructuring activities that began in 2018 and continued in 2023, including the effect of non-core banking activities such as the sale of loans and securities and other repossessed assets, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments, and other non-routine actions intended to improve customer service and operating performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies. Exhibit 2 reconciles these non-GAAP financial measures to GAAP reported results. Exhibit 1- Selected Financial Information The following table sets forth selected financial information derived from our interim unaudited and annual audited consolidated financial statements. (in thousands)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Consolidated Balance Sheets (audited)Total assets$9,345,700 $9,519,526 $9,495,302 $9,127,804Total investments 1,314,367 1,315,303 1,347,697 1,366,680Total gross loans (1) 7,142,596 7,216,958 7,115,035 6,919,632Allowance for credit losses 98,773 105,956 84,361 83,500Total deposits 7,546,912 7,579,571 7,286,726 7,044,199Core deposits (2) 5,244,034 5,498,017 5,357,386 5,315,944Advances from the Federal Home Loan Bank 595,000 770,000 1,052,012 906,486Senior notes 59,447 59,368 59,289 59,210Subordinated notes 29,412 29,369 29,326 29,284Junior subordinated debentures 64,178 64,178 64,178 64,178Stockholders' equity (3)(4) 719,787 720,956 729,056 705,726Assets under management and custody (5) 2,092,200 2,147,465 2,107,603 1,995,666 Three Months Ended(in thousands, except percentages, share data and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Consolidated Results of Operations Net interest income$78,577 $83,877 $82,333 $82,178 Provision for credit losses (6)(7) 8,000 29,077 11,700 16,857 Noninterest income 21,921 26,619 19,343 24,365 Noninterest expense 64,420 72,500 64,733 62,241 Net income attributable to Amerant Bancorp Inc. (6) (8) 22,119 7,308 20,186 21,973 Effective income tax rate (6) 22.57% 21.00% 21.00% 20.50% Common Share Data Stockholders' book value per common share$21.43 $21.37 $21.56 $20.87 Tangible stockholders' equity (book value) per common share (9)$20.63 $20.66 $20.84 $20.19 Tangible stockholders' equity (book value) per common share, adjusted for unrealized losses on debt securities held to maturity (9)$19.86 $20.11 $20.38 $19.65 Basic earnings per common share (6)$0.66 $0.22 $0.60 $0.66 Diluted earnings per common share (6)(10)$0.66 $0.22 $0.60 $0.65 Basic weighted average shares outstanding 33,489,560 33,564,770 33,559,718 33,496,096 Diluted weighted average shares outstanding (10) 33,696,620 33,717,702 33,855,994 33,813,593 Cash dividend declared per common share (4)$0.09 $0.09 $0.09 $0.09 Three Months Ended September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Other Financial and Operating Data (11) Profitability Indicators (%) Net interest income / Average total interest earning assets (NIM) (12)3.57% 3.83% 3.90% 3.96% Net income / Average total assets (ROA) (6) (13)0.92% 0.31% 0.88% 0.97% Net income / Average stockholders' equity (ROE) (6)(14)11.93% 3.92% 11.15% 12.10% Noninterest income / Total revenue (15)21.81% 24.09% 19.02% 22.87% Capital Indicators (%) Total capital ratio (16)12.70% 12.39% 12.36% 12.39% Tier 1 capital ratio (17)11.08% 10.77% 10.88% 10.89% Tier 1 leverage ratio (18)9.05% 8.91% 9.04% 9.18% Common equity tier 1 capital ratio (CET1) (19)10.30% 10.00% 10.10% 10.10% Tangible common equity ratio (20)7.44% 7.34% 7.44% 7.50% Tangible common equity ratio, adjusted for unrealized losses on debt securities held to maturity (21)7.18% 7.16% 7.29% 7.31% Liquidity Ratios (%) Loans to Deposits (22)94.64% 95.22% 97.64% 98.23% Asset Quality Indicators (%) Non-performing assets / Total assets (23)0.57% 0.71% 0.51% 0.41% Non-performing loans / Total gross loans (1) (24)0.46% 0.65% 0.31% 0.54% Allowance for credit losses / Total non-performing loans (24)297.55% 224.51% 380.31% 222.08% Allowance for credit losses / Total loans held for investment1.40% 1.48% 1.20% 1.22% Net charge-offs / Average total loans held for investment (25)0.82% 0.42% 0.64% 0.59% Efficiency Indicators (% except FTE) Noninterest expense / Average total assets2.69% 3.06% 2.82% 2.75% Salaries and employee benefits / Average total assets1.31% 1.45% 1.52% 1.45% Other operating expenses/ Average total assets (26)1.38% 1.62% 1.30% 1.30% Efficiency ratio (27)64.10% 65.61% 63.67% 58.42% Full-Time-Equivalent Employees (FTEs) (28)700 710 722 692 Three Months Ended(in thousands, except percentages and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Core Selected Consolidated Results of Operations and Other Data (9) Pre-provision net revenue (PPNR)$36,456 $38,258 $37,187 $44,457 Core pre-provision net revenue (Core PPNR)$35,880 $39,196 $37,103 $37,838 Core net income (6)$21,664 $8,048 $20,120 $16,817 Core basic earnings per common share (6) 0.65 0.24 0.60 0.50 Core earnings per diluted common share (6) (10) 0.64 0.24 0.59 0.50 Core net income / Average total assets (Core ROA) (6) (13) 0.91% 0.34% 0.88% 0.74% Core net income / Average stockholders' equity (Core ROE) (6) (14) 11.69% 4.32% 11.11% 9.26% Core efficiency ratio (29) 62.08% 60.29% 62.47% 61.34% __________________(1)Total gross loans include loans held for investment net of unamortized deferred loan origination fees and costs, as well as loans held for sale. As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, mortgage loans held for sale carried at fair value totaled $26.0 million, $49.9 million, $65.3 million and $62.4 million, respectively. In addition, as of September 30, 2023, includes $43.3 million in loans held for sale carried at the lower of estimated fair value or cost.(2)Core deposits consist of total deposits excluding all time deposits.(3)In the fourth quarter of 2022, the Company announced that the Board of Directors authorized a new repurchase program pursuant to which the Company may purchase, from time to time, up to an aggregate amount of $25 million of its shares of Class A common stock (the “2023 Class A Common Stock Repurchase Program”). In the third, second and first quarters of 2023, the Company repurchased an aggregate of 142,188 shares of Class A common stock, 95,262 shares of Class A common stock and 22,403 shares of Class A common stock, respectively, at a weighted average price of $19.05 per share, $17.42 per share and $25.25 per share, respectively, under the 2023 Class A Common Stock Repurchase Program. In the third, second and first quarters of 2023, the aggregate purchase price for these transactions was approximately $2.7 million, $1.7 million and $0.6 million, respectively, including transaction costs.(4)For each of the third, second and first quarters of 2023 and the fourth quarter of 2022, the Company’s Board of Directors declared cash dividends of $0.09 per share of the Company’s common stock and paid an aggregate amount of $3.0 million per quarter in connection with these dividends. The dividend declared in the third quarter of 2023 was paid on August 31, 2023 to shareholders of record at the close of business on August 15, 2023. The dividend declared in the second quarter of 2023 was paid on May 31, 2023 to shareholders of record at the close of business on May 15, 2023. The dividend declared in the first quarter of 2023 was paid on February 28, 2023 to shareholders of record at the close of business on February 13, 2023. The dividend declared in the fourth quarter of 2022 was paid on November 30, 2022 to shareholders of record at the close of business on November 15, 2022.(5)Assets held for clients in an agency or fiduciary capacity which are not assets of the Company and therefore are not included in the consolidated financial statements.(6)As previously disclosed, the Company adopted CECL in the fourth quarter of 2022, effective as of January 1, 2022. See Form 10-K for more details on the CECL adoption and related effects to quarterly results for each quarter in the year ended December 31, 2022.(7)In the third quarter of 2023, includes $7.4 million and $0.6 million of provision for credit losses on loans and unfunded commitments (contingencies), respectively. For all other periods shown, includes provision for credit losses on loans. There was no provision for credit losses on unfunded commitments in the second quarter of 2023 and the fourth quarter of 2022. In the first quarter of 2023, the provision for credit losses on unfunded commitments was $0.3 million.(8)In the three months ended September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, net income excludes losses of $0.4 million, $0.3 million, $0.2 million and $0.2 million, respectively, attributable to a minority interest in Amerant Mortgage LLC.(9)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.(10)In all the periods shown, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. Potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in all the periods shown, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings.(11)Operating data for the periods presented have been annualized.(12)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.(13)Calculated based upon the average daily balance of total assets.(14)Calculated based upon the average daily balance of stockholders’ equity.(15)Total revenue is the result of net interest income before provision for credit losses plus noninterest income.(16)Total stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.(17)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.(18)Tier 1 capital divided by quarter to date average assets.(19)CET1 capital divided by total risk-weighted assets.(20)Tangible common equity is calculated as the ratio of common equity less goodwill and other intangibles divided by total assetsless 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.(21)Calculated in the same manner described in footnote 19 but also includes unrealized losses on debt securities held to maturity in the balance of common equity and total assets.(22)Calculated as the ratio of total loans gross divided by total deposits.(23)Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans and other real estate owned (“OREO”) properties acquired through or in lieu of foreclosure, and other repossessed assets.(24)Non-performing loans include all accruing loans past due by 90 days or more and all nonaccrual loans(25)Calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for credit losses. During the third, second and first quarters of 2023, and in the fourth quarter of 2022, there were net charge offs of $14.6 million, $7.5 million , $10.8 million, and $9.8 million, respectively. During the third quarter of 2023, the Company charged-off $6.4 million related to multiple consumer loans, primarily purchased indirect consumer loans, and $9.3 million related to multiple commercial loans. During the second quarter of 2023, the Company charged-off $7.6 million related to multiple purchased indirect consumer loans and $1.5 million related to multiple commercial loans. During the first quarter of 2023, the Company charged-off $6.5 million in connection with a commercial loan relationship, $6.3 million related to multiple consumer loans and $1.5 million related to multiple commercial and real estate loans. During the fourth quarter of 2022, the Company charged-off $3.9 million related to a CRE loan, $5.5 million related to multiple consumer loans and $1.1 million related to multiple commercial loans.(26)Other operating expenses is the result of total noninterest expense less salary and employee benefits.(27)Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and NII.(28)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes 98, 93, 94 and 68 FTEs for Amerant Mortgage LLC, respectively.(29)Core efficiency ratio is the efficiency ratio less the effect of restructuring costs and other non-routine items, described in Exhibit 2 - Non-GAAP Financial Measures Reconciliation. Exhibit 2- Non-GAAP Financial Measures Reconciliation The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related to tax deductible restructuring costs, provision for (reversal of) credit losses, provision for income tax expense (benefit), the effect of non-core banking activities such as the sale of loans and securities and other repossessed assets, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments and other non-routine actions intended to improve customer service and operating performance. The Company believes these adjusted numbers are useful to understand the Company’s performance absent these transactions and events. Three Months Ended,(in thousands)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income attributable to Amerant Bancorp Inc. (1)$22,119 $7,308 $20,186 $21,973 Plus: provision for credit losses (1)(2) 8,000 29,077 11,700 16,857 Plus: provision for income tax expense (1) 6,337 1,873 5,301 5,627 Pre-provision net revenue (PPNR) 36,456 38,258 37,187 44,457 Plus: non-routine noninterest expense items 6,303 13,383 3,372 2,447 Less: non-routine noninterest income items (6,879) (12,445) (3,456) (9,066)Core pre-provision net revenue (Core PPNR)$35,880 $39,196 $37,103 $37,838 Total noninterest income$21,921 $26,619 $19,343 $24,365 Less: Non-routine noninterest income items: Derivatives (losses) gains, net (77) 242 14 1,040 Securities losses, net (54) (1,237) (9,731) (3,364)Gains on early extinguishment of FHLB advances, net 7,010 13,440 13,173 11,390 Total non-routine noninterest income items$6,879 $12,445 $3,456 $9,066 Core noninterest income$15,042 $14,174 $15,887 $15,299 Total noninterest expenses$64,420 $72,500 $64,733 $62,241 Less: non-routine noninterest expense items Restructuring costs (3): Staff reduction costs (4) 489 2,184 213 1,221 Contract termination costs (5) — 1,550 — — Consulting and other professional fees (6) — 2,060 2,690 1,226 Disposition of fixed assets (7) — 1,419 — — Branch closure expenses and related charges (8) 252 1,558 469 — Total restructuring costs$741 $8,771 $3,372 $2,447 Other non-routine noninterest expense items: Loans held for sale valuation expense (9) 5,562 — — — Loss on sale of repossessed assets (10) — 2,649 — — Impairment charge on investment carried at cost — 1,963 — — Total non-routine noninterest expense items$6,303 $13,383 $3,372 $2,447 Core noninterest expenses $58,117 $59,117 $61,361 $59,794 Three Months Ended, (in thousands, except percentages and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income attributable to Amerant Bancorp Inc. (1)$22,119 $7,308 $20,186 $21,973 Plus after-tax non-routine items in noninterest expense: Non-routine items in noninterest expense before income tax effect 6,303 13,383 3,372 2,447 Income tax effect (11) (1,486) (2,811) (708) (460)Total after-tax non-routine items in noninterest expense 4,817 10,572 2,664 1,987 Less after-tax non-routine items in noninterest income: Non-routine items in noninterest income before income tax effect (6,879) (12,445) (3,456) (9,066)Income tax effect (11) 1,607 2,613 726 1,923 Total after-tax non-routine items in noninterest income (5,272) (9,832) (2,730) (7,143)Core net income (1)$21,664 $8,048 $20,120 $16,817 Basic earnings per share (1)$0.66 $0.22 $0.60 $0.66 Plus: after tax impact of non-routine items in noninterest expense 0.14 0.31 0.08 0.06 Less: after tax impact of non-routine items in noninterest income (0.15) (0.29) (0.08) (0.22)Total core basic earnings per common share (1)$0.65 $0.24 $0.60 $0.50 Diluted earnings per share (1) (12)$0.66 $0.22 $0.60 $0.65 Plus: after tax impact of non-routine items in noninterest expense 0.14 0.31 0.08 0.06 Less: after tax impact of non-routine items in noninterest income (0.16) (0.29) (0.09) (0.21)Total core diluted earnings per common share (1)$0.64 $0.24 $0.59 $0.50 Net income / Average total assets (ROA) (1) 0.92% 0.31% 0.88% 0.97%Plus: after tax impact of non-routine items in noninterest expense 0.20% 0.45% 0.12% 0.09%Less: after tax impact of non-routine items in noninterest income(0.21)% (0.42)% (0.12)% (0.32)%Core net income / Average total assets (Core ROA) (1) 0.91% 0.34% 0.88% 0.74% Net income / Average stockholders' equity (ROE) (1) 11.93% 3.92% 11.15% 12.10%Plus: after tax impact of non-routine items in noninterest expense 2.60% 5.68% 1.47% 1.09%Less: after tax impact of non-routine items in noninterest income(2.84)% (5.28)% (1.51)% (3.93)%Core net income / Average stockholders' equity (Core ROE) (1) 11.69% 4.32% 11.11% 9.26% Efficiency ratio 64.10% 65.61% 63.67% 58.42%Less: impact of non-routine items in noninterest expense(6.27)% (12.11)% (3.32)% (2.30)%Plus: impact of non-routine items in noninterest income 4.25% 6.79% 2.12% 5.22%Core efficiency ratio 62.08% 60.29% 62.47% 61.34% Three Months Ended,(in thousands, except percentages, share data and per share amounts)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Stockholders' equity$719,787 $720,956 $729,056 $705,726 Less: goodwill and other intangibles (13) (26,818) (24,124) (24,292) (23,161)Tangible common stockholders' equity$692,969 $696,832 $704,764 $682,565 Total assets 9,345,700 9,519,526 9,495,302 9,127,804 Less: goodwill and other intangibles (13) (26,818) (24,124) (24,292) (23,161)Tangible assets$9,318,882 $9,495,402 $9,471,010 $9,104,643 Common shares outstanding 33,583,621 33,736,159 33,814,260 33,815,161 Tangible common equity ratio 7.44% 7.34% 7.44% 7.50%Stockholders' book value per common share$21.43 $21.37 $21.56 $20.87 Tangible stockholders' equity book value per common share$20.63 $20.66 $20.84 $20.19 Tangible common stockholders' equity$692,969 $696,832 $704,764 $682,565 Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (14) (26,138) (18,503) (15,542) (18,234)Tangible common stockholders' equity, adjusted for net unrealized accumulated losses on debt securities held to maturity$666,831 $678,329 $689,222 $664,331 Tangible assets$9,318,882 $9,495,402 $9,471,010 $9,104,643 Less: Net unrealized accumulated losses on debt securities held to maturity, net of tax (14) (26,138) (18,503) (15,542) (18,234)Tangible assets, adjusted for net unrealized accumulated losses on debt securities held to maturity$9,292,744 $9,476,899 $9,455,468 $9,086,409 Common shares outstanding 33,583,621 33,736,159 33,814,260 33,815,161 Tangible common equity ratio, adjusted for net unrealized accumulated losses on debt securities held to maturity 7.18% 7.16% 7.29% 7.31%Tangible stockholders' book value per common share, adjusted for net unrealized accumulated losses on debt securities held to maturity$19.86 $20.11 $20.38 $19.65 ____________(1)As previously disclosed, the Company adopted CECL in the fourth quarter of 2022, effective as of January 1, 2022. See Form 10-K for more details of the CECL adoption and related effects to quarterly results for each quarter in the year ended December 31, 2022.(2)In the third quarter of 2023, includes $7.4 million and $0.6 million of provision for credit losses on loans and unfunded commitments (contingencies), respectively. For all other periods shown, includes provision for credit losses on loans. There was no provision for credit losses on unfunded commitments in the second quarter of 2023 and the fourth quarter of 2022. In the first quarter of 2023, the provision for credit losses on unfunded commitments was $0.3 million.(3)Expenses incurred for actions designed to implement the Company’s business strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation of new technology system applications, decommissioning of legacy technologies, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities.(4)Staff reduction costs consist of severance expenses related to organizational rationalization.(5)Contract termination and related costs associated with third party vendors resulting from the Company’s engagement of FIS.(6)Includes expenses in connection with the engagement of FIS of $2.0 million, $2.6 million and $1.1 million in the three months ended June 30, 2023, March 31, 2023 and December 31, 2022, respectively.(7)Include expenses in connection with the disposition of fixed assets due to the write off of in-development software in the three months ended June 30, 2023.(8)In the three months ended September 30, 2023, consists of expenses in connection with the closure of a branch in Houston, Texas in 2023. In the three months ended June 30, 2023, consists of expenses associated with the closure of a branch in Miami, Florida in 2023, including $0.9 million of accelerated amortization of leasehold improvements and $0.6 million of right-of-use, or ROU asset impairment. In the three months ended March 31, 2023, includes $0.5 million of ROU asset impairment associated with the closure of a branch in Houston, Texas in 2023.(9)Fair value adjustment related to a New York-based CRE loan held for sale carried at the lower of fair value or cost.(10)In the three months ended June 30, 2023, amount represents the loss on sale of repossessed assets in connection with our equipment-financing activities.(11)In the three months ended March 31, 2023, amounts were calculated based upon the effective tax rate for the period of 21.00%. For all of the other periods shown, amounts represent the difference between the prior and current period year-to-date tax effect.(12)Potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance stock units. In all the periods presented, potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share in those periods, fewer shares would have been purchased than restricted shares assumed issued. Therefore, in those periods, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect on per share earnings.(13)At September 30, 2023, other intangible assets primarily consist of naming rights and mortgage servicing rights (“MSRs”) of $2.7 million and $1.3 million, respectively. At June 30, 2023, March 31, 2023 and December 31, 2022, other intangible assets primarily consist of MSRs of $1.3 million, $1.4 million and $1.3 million, respectively. Other intangible assets are included in other assets in the Company’s consolidated balance sheets.(14)In the three months ended September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, amounts were calculated based upon the fair value on debt securities held to maturity, and assuming a tax rate of 25.51%, 25.46%, 25.53% and 25.55%, respectively. Exhibit 3 - Average Balance Sheet, Interest and Yield/Rate Analysis The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the periods presented. The average balances for loans include both performing and nonperforming balances. Interest income on loans includes the effects of discount accretion and the amortization of non-refundable loan origination fees, net of direct loan origination costs, accounted for as yield adjustments. Average balances represent the daily average balances for the periods presented. Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ Rates Average BalancesIncome/ExpenseYield/ RatesInterest-earning assets: Loan portfolio, net (1)(2)$7,048,891$120,2446.77% $7,068,034$119,5706.79% $6,021,294$76,7795.06%Debt securities available for sale (3) (4) 1,052,147 10,9244.12% 1,041,039 10,3974.01% 1,110,153 8,3792.99%Debt securities held to maturity (5) 232,146 1,9583.35% 236,297 1,9763.35% 235,916 1,9213.23%Debt securities held for trading 2,048 40.77% 262 34.59% 65 16.10%Equity securities with readily determinable fair value not held for trading 2,479 213.36% 27 ——% 12,018 ——%Federal Reserve Bank and FHLB stock 54,056 9617.05% 52,917 8576.50% 49,398 6054.86%Deposits with banks 344,015 5,2486.05% 379,123 5,6946.02% 258,237 1,4522.23%Other short-term investments 1,964 234.65% — ——% — ——%Total interest-earning assets 8,737,746 139,3836.33% 8,777,699 138,4976.33% 7,687,081 89,1374.60%Total non-interest-earning assets (6) 756,141 710,404 639,118 Total assets$9,493,887 $9,488,103 $8,326,199 Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ Rates Average BalancesIncome/ExpenseYield/ RatesInterest-bearing liabilities: Checking and saving accounts Interest bearing DDA$2,523,092 $16,6682.62% $2,641,746 $16,6782.53% $2,077,321 $4,9340.94%Money market 1,144,580 11,0133.82% 1,169,047 9,4013.23% 1,363,799 3,5551.03%Savings 280,096 320.05% 287,493 360.05% 320,861 540.07%Total checking and saving accounts 3,947,768 27,7132.79% 4,098,286 26,1152.56% 3,761,981 8,5430.90%Time deposits 2,201,138 22,4824.05% 2,045,747 18,5283.63% 1,247,084 4,7171.50%Total deposits 6,148,906 50,1953.24% 6,144,033 44,6432.91% 5,009,065 13,2601.05%Securities sold under agreements to repurchase 326 44.87% 60 16.68% — ——%Advances from the FHLB (7) 800,978 8,2074.07% 828,301 7,6213.69% 866,639 3,9771.82%Senior notes 59,409 9426.29% 59,330 9416.36% 59,092 9416.32%Subordinated notes 29,391 3614.87% 29,348 3624.95% 29,220 3624.92%Junior subordinated debentures 64,178 1,0976.78% 64,178 1,0526.57% 64,178 7004.33%Total interest-bearing liabilities 7,103,188 60,8063.40% 7,125,250 54,6203.07% 6,028,194 19,2401.27%Non-interest-bearing liabilities: Non-interest bearing demand deposits 1,335,041 1,332,189 1,316,988 Accounts payable, accrued liabilities and other liabilities 320,369 283,653 245,425 Total non-interest-bearing liabilities 1,655,410 1,615,842 1,562,413 Total liabilities 8,758,598 8,741,092 7,590,607 Stockholders’ equity 735,289 747,011 735,592 Total liabilities and stockholders' equity$9,493,887 $9,488,103 $8,326,199 Excess of average interest-earning assets over average interest-bearing liabilities$1,634,558 $1,652,449 $1,658,887 Net interest income $78,577 $83,877 $69,897 Net interest rate spread 2.93% 3.26% 3.33%Net interest margin (8) 3.57% 3.83% 3.61%Cost of total deposits (9) 2.66% 2.40% 0.83%Ratio of average interest-earning assets to average interest-bearing liabilities 123.01% 123.19% 127.52% Average non-performing loans/ Average total loans 0.56% 0.54% 0.42% Nine Months Ended September 30, 2023 September 30, 2022(in thousands, except percentages) AverageBalancesIncome/ExpenseYield/Rates Average BalancesIncome/ ExpenseYield/ RatesInterest-earning assets: Loan portfolio, net (1)(2)$7,006,633 $348,3156.65% $5,718,264 $194,6314.55%Debt securities available for sale (3)(4) 1,050,648 31,4944.01% 1,130,231 23,3712.76%Debt securities held to maturity (5) 236,325 6,0463.42% 176,462 3,6052.73%Debt securities held for trading 783 61.02% 67 35.99%Equity securities with readily determinable fair value not held for trading 2,455 211.14% 8,615 ——%Federal Reserve Bank and FHLB stock 54,911 2,8336.90% 50,118 1,6904.51%Deposits with banks 342,127 14,2725.58% 247,401 2,1021.14%Other short-term investments 662 234.65% — ——%Total interest-earning assets (6) 8,694,544 403,0106.20% 7,331,158 225,4024.11%Total non-interest-earning assets less allowance for loan losses 735,943 592,087 Total assets$9,430,487 $7,923,245 Interest-bearing liabilities: Checking and saving accounts - Interest bearing DDA$2,503,147 $46,2012.47% $1,769,001 $6,2580.47%Money market 1,215,005 28,2953.11% 1,293,748 5,6390.58%Savings 288,959 1140.05% 321,634 800.03%Total checking and saving accounts 4,007,111 74,6102.49% 3,384,383 11,9770.47%Time deposits 2,006,417 53,8443.59% 1,265,982 13,5011.43%Total deposits 6,013,528 128,4542.86% 4,650,365 25,4780.73%Securities sold under agreements to repurchase 130 55.14% 20 ——%Advances from the FHLB (7) 862,310 22,5913.50% 883,566 9,7991.48%Senior notes 59,330 2,8256.37% 59,014 2,8256.40%Subordinated notes 29,349 1,0844.94% 22,030 8114.92%Junior subordinated debentures 64,178 3,2646.80% 64,178 2,0024.17%Total interest-bearing liabilities 7,028,825 158,2233.01% 5,679,173 40,9150.96%Non-interest-bearing liabilities: Non-interest bearing demand deposits 1,348,242 1,275,689 Accounts payable, accrued liabilities and other liabilities 313,967 209,123 Total non-interest-bearing liabilities 1,662,209 1,484,812 Total liabilities 8,691,034 7,163,985 Stockholders’ equity 739,453 759,260 Total liabilities and stockholders' equity$9,430,487 $7,923,245 Excess of average interest-earning assets over average interest-bearing liabilities$1,665,719 $1,651,985 Net interest income $244,787 $184,487 Net interest rate spread 3.19% 3.15%Net interest margin (8) 3.76% 3.36%Cost of total deposits (9) 2.33% 0.57%Ratio of average interest-earning assets to average interest-bearing liabilities 123.70% 129.09% Average non-performing loans/ Average total loans 0.48% 0.56% ___________(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 $101.2 million, $84.6 million, and $51.9 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $89.1 million and $58.4 million in the nine months ended September 30, 2023 and 2022, respectively. The average balance of total loans held for sale was $58.8 million, $85.1 million and $142.5 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $70.1 million and $130.8 million in the nine months ended September 30, 2023 and 2022, respectively.(2)Includes average non-performing loans of $39.8 million, $38.5 million and $25.3 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, $34.1 million and $32.4 million in the nine months ended September 30, 2023 and 2022, 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 $119.8 million, $106.7 million, and $72.4 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $110.5 million and $42.9 million in the nine months ended September 30, 2023 and 2022, respectively.(4)Includes nontaxable securities with average balances of $18.6 million, $19.5 million and $17.1 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $18.6 million in each of the nine months ended September 30, 2023 and 2022. The tax equivalent yield for these nontaxable securities was 4.34%, 4.53% and 2.69% for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and 4.64% and 3.67% in the nine months ended September 30, 2023 and 2022, respectively. In 2023 and 2022, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.(5)Includes nontaxable securities with average balances of $49.6 million, $50.1 million and $41.9 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $50.1 million and $42.9 million for the nine months ended September 30, 2023 and 2022, respectively. The tax equivalent yield for these nontaxable securities was 4.26%, 4.16% and 3.48% for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and 4.21% and 3.31% for the nine months ended September 30, 2023 and 2022, respectively. In 2023 and 2022, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79.(6)Excludes the allowance for credit losses.(7)The terms of the FHLB advance agreements require the Bank to maintain certain investment securities or loans as collateral for these advances.(8)NIM is defined as net interest income divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.(9)Calculated based upon the average balance of total noninterest bearing and interest bearing deposits. Exhibit 4 - Noninterest Income This table shows the amounts of each of the categories of noninterest income for the periods presented. Three Months Ended Nine Months Ended September 30, September 30, 2023 June 30, 2023 September 30, 2022 2023 2022 (in thousands, except percentages)Amount % Amount % Amount % Amount% Amount% Deposits and service fees$5,053 23.1% $4,944 18.6% $4,629 29.0% $14,952 22.0% $13,826 32.2%Brokerage, advisory and fiduciary activities 4,370 19.9% 4,256 16.0% 4,619 29.0% 12,808 18.9% 13,654 31.8%Change in cash surrender value of bank owned life insurance (“BOLI”)(1) 1,483 6.8% 1,429 5.4% 1,352 8.5% 4,324 6.4% 4,028 9.4%Cards and trade finance servicing fees 734 3.4% 562 2.1% 622 3.9% 1,829 2.7% 1,720 4.0%Gain (loss) on early extinguishment of FHLB advances, net 7,010 32.0% 13,440 50.5% — —% 33,623 49.5% (712)(1.7)%Securities losses, net (2) (54) (0.3)% (1,237) (4.7)% 1,508 9.5% (11,022)(16.2)% (325)(0.8)%Loan-level derivative income (3) 1,196 5.5% 476 1.8% 2,786 17.5% 3,743 5.5% 6,947 16.2%Derivative (losses) gains, net (4) (77) (0.4)% 242 0.9% (95) (0.6)% 179 0.3% (585)(1.4)%Other noninterest income (5) 2,206 10.0% 2,507 9.4% 535 3.2% 7,447 10.9% 4,359 10.3%Total noninterest income$21,921 100.0% $26,619 100.0% $15,956 100.0% $67,883 100.0% $42,912 100.0% __________________(1)Changes in cash surrender value of BOLI are not taxable.(2)Includes net loss of $1.2 million and net gains of $22 thousand in the three months ended June 30, 2023 and September 30, 2022, respectively, and net loss of $10.8 million and net gain of $0.1 million in the nine months ended September 30, 2023 and 2022, respectively, in connection with the sale of debt securities available for sale. There were no significant gains and losses in connection with the sale of debt securities available for sale in the three months ended September 30, 2023. In addition, includes unrealized losses of $0.1 million and unrealized gains of $1.5 million in the three months ended September 30, 2023 and 2022, respectively, and unrealized losses of $0.1 million and $0.4 million in the nine months ended September 30, 2023 and 2022, respectively, related to the change in fair value of equity securities with readily available fair value not held for trading which are recorded in results of the period. There were no significant unrealized losses related to equity securities with readily available fair value not held for trading in the three months ended June 30, 2023. Also, in the nine months ended September 30, 2023, the Company sold equity securities with readily available fair value not held for trading, with a total fair value of $11.2 million at the time of sale, and recognized a net loss of $0.2 million in connection with this transaction.(3)Income from interest rate swaps and other derivative transactions with customers. The Company incurred expenses related to derivative transactions with customers of $18.0 thousand, $0.1 million and $1.8 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $1.7 million and $4.9 million in the nine months ended September 30, 2023 and 2022, respectively, which are included as part of noninterest expenses under loan-level derivative expense.(4)Net unrealized gains and losses related to uncovered interest rate caps with clients.(5)Includes mortgage banking income of $0.5 million, $1.6 million and $0.1 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $3.9 million and $3.2 million in the nine months ended September 30, 2023 and 2022, respectively, related to Amerant Mortgage. In addition, includes rental income from operating leases of $0.3 million and $0.4 million in the three months ended September 30, 2023 and June 30, 2023, respectively, and $0.7 million in the nine months ended September 30, 2023. 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 Nine Months Ended September 30, September 30, 2023 June 30, 2023 September 30, 2022 2023 2022 (in thousands, except percentages)Amount % Amount % Amount % Amount% Amount% Salaries and employee benefits (1)$31,334 48.6% $34,24747.2% $30,10953.7% $100,45749.8% $90,72450.6%Occupancy and equipment (2) 7,293 11.3% 6,7379.3% 6,55911.7% 20,82810.3% 21,04411.8%Professional and other services fees (3) 5,325 8.3% 7,41510.2% 5,0459.0% 20,36810.1% 15,9188.9%Loan-level derivative expense (4) 18 —% 1100.2% 1,8103.2% 1,7280.9% 4,8652.7%Telecommunications and data processing (5) 3,556 5.5% 5,0276.9% 3,8616.9% 11,6475.8% 11,1136.2%Depreciation and amortization (6) 1,795 2.8% 2,2753.1% 1,4812.6% 5,3622.7% 3,9272.2%FDIC assessments and insurance 2,590 4.0% 2,7393.8% 1,7463.1% 8,0664.0% 4,6682.6%Loans held for sale valuation expense (7) 5,562 8.6% ——% ——% 5,5622.8% 1590.1%Advertising expenses 2,724 4.2% 4,3326.0% 2,0663.7% 9,6424.8% 8,2914.6%Other real estate owned and repossessed assets (income) expense, net (8)(9) (134)(0.2)% 2,4313.4% 2340.4% 2,2971.1% 3,4081.9%Contract termination costs (10) — —% 1,5502.1% 2890.5% 1,5500.8% 7,1034.0%Other operating expenses (11) 4,357 6.9% 5,6377.8% 2,9135.2% 14,1466.9% 7,9524.4%Total noninterest expense (12)$64,420 100.0% $72,500100.0% $56,113100.0% $201,653100.0% $179,172100.0% __________________(1)Includes staff reduction costs of $0.5 million, $2.2 million and $0.4 million in the three months ended September 30, 2023 June 30, 2023 and September 30, 2022, respectively, and $2.9 million and $1.8 million in the nine months ended September 30, 2023 and 2022, respectively, which consist of severance expenses primarily related to organizational rationalization.(2)In each of the three and the nine month periods ended September 30, 2023, includes a rent termination fee of $0.3 million in connection with the closure of a branch in Houston, Texas. In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes $0.6 million related to ROU asset impairment in connection with the closure of a branch in Miami, Florida in 2023. In addition, in the nine months ended September 30, 2023, includes $0.5 million related to ROU asset impairment in connection with the closure of a branch in Houston, Texas in 2023. In the nine months ended September 30, 2022, includes ROU asset impairment charge of $1.6 million in connection with the closure of a branch in Pembroke Pines, Florida in 2022. There were no ROU asset impairment charges in connection with branch closures in the three months ended September 30, 2023 and 2022.(3)Includes additional expenses of $2.0 million and $1.0 million in the three months ended June 30, 2023 and September 30, 2022, respectively, and $4.6 million and $1.8 million in the nine months ended September 30, 2023 and 2022, respectively, related to the engagement of FIS.(4)Includes services fees in connection with our loan-level derivative income generation activities.(5)Includes a charge of $1.4 million in each of the three months ended June 30, 2023 and the nine months ended September 30, 2023 related to the disposition of fixed assets due to the write off of in-development software.(6)Includes a charge of $0.9 million in each of the three months ended June 30, 2023 and the nine months ended September 30, 2023 for the accelerated depreciation of leasehold improvements in connection with the closure of a branch in Miami, Florida in 2023.(7)Valuation allowance as a result of changes in the fair value of loans held for sale carried at the lower of cost or fair value.(8)In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes a loss on sale of repossessed assets in connection with our equipment-financing activities of $2.6 million. In the three and nine month periods ended September 30, 2022, includes $0.2 million and $3.4 million, respectively, related to the fair value adjustment of one other real estate owned (“OREO”) property in New York. In addition, in the three months ended September 30, 2023 and June 30, 2023, and the nine months ended September 30, 2023, includes OREO rental income of $0.4 million, $0.4 million, and $0.9 million, respectively. We had no OREO rental income in the three and nine month periods ended September 30, 2022.(9)Beginning in the three months ended June 30, 2023, OREO and repossessed assets expense is presented separately in the Company’s consolidated statement of operations and comprehensive (loss) income. In 2022, while OREO valuation expense was presented separately, all other OREO-related expenses were presented as part of other operating expenses in the Company’s consolidated statement of operations and comprehensive (loss) income. We had no other repossessed assets in 2022.(10)Contract termination and related costs associated with third party vendors resulting from the Company’s transition to our new technology provider.(11)In each of the three months ended June 30, 2023 and the nine months ended September 30, 2023, includes an impairment charge of $2.0 million related to an investment carried at cost and included in other assets. In addition, in all of the periods shown, includes 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.(12)Includes $3.0 million, $4.0 million and $2.7 million in the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $10.9 million and $9.8 million in the nine months ended September 30, 2023 and 2022, respectively, related to Amerant Mortgage, primarily consisting of salaries and employee benefits, mortgage lending costs and professional and other services fees. Exhibit 6 - Consolidated Balance Sheets (in thousands, except share data)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022Assets (audited)Cash and due from banks$48,145 $45,184 $41,489 $19,486 Interest earning deposits with banks 202,946 365,673 411,747 228,955 Restricted cash 51,837 34,204 32,541 42,160 Other short-term investments 6,024 — — — Cash and cash equivalents 308,952 445,061 485,777 290,601 Securities Debt securities available for sale, at fair value 1,033,797 1,027,676 1,045,883 1,057,621 Debt securities held to maturity, at amortized cost (estimated fair value of $195,165, $209,546, $218,388 and $217,609 at September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively) 230,254 234,369 239,258 242,101 Trading securities — 298 — — Equity securities with readily determinable fair value not held for trading 2,438 2,500 — 11,383 Federal Reserve Bank and Federal Home Loan Bank stock 47,878 50,460 62,556 55,575 Securities 1,314,367 1,315,303 1,347,697 1,366,680 Loans held for sale, at lower of fair value or cost (1) 43,257 — — — Mortgage loans held for sale, at fair value 25,952 49,942 65,289 62,438 Loans held for investment, gross 7,073,387 7,167,016 7,049,746 6,857,194 Less: Allowance for credit losses 98,773 105,956 84,361 83,500 Loans held for investment, net 6,974,614 7,061,060 6,965,385 6,773,694 Bank owned life insurance 232,736 231,253 229,824 228,412 Premises and equipment, net 43,004 43,714 42,380 41,772 Deferred tax assets, net 63,501 56,779 46,112 48,703 Operating lease right-of-use assets 116,763 116,161 119,503 139,987 Goodwill 20,525 20,525 20,525 19,506 Accrued interest receivable and other assets (2) 202,029 179,728 172,810 156,011 Total assets$9,345,700 $9,519,526 $9,495,302 $9,127,804 Liabilities and Stockholders' Equity Deposits Demand Noninterest bearing$1,370,157 $1,293,522 $1,360,626 $1,367,664 Interest bearing 2,416,797 2,773,120 2,489,565 2,300,469 Savings and money market 1,457,080 1,431,375 1,507,195 1,647,811 Time 2,302,878 2,081,554 1,929,340 1,728,255 Total deposits 7,546,912 7,579,571 7,286,726 7,044,199 Advances from the Federal Home Loan Bank 595,000 770,000 1,052,012 906,486 Senior notes 59,447 59,368 59,289 59,210 Subordinated notes 29,412 29,369 29,326 29,284 Junior subordinated debentures held by trust subsidiaries 64,178 64,178 64,178 64,178 Operating lease liabilities (3) 120,665 119,921 122,214 140,147 Accounts payable, accrued liabilities and other liabilities (4) 210,299 176,163 152,501 178,574 Total liabilities 8,625,913 8,798,570 8,766,246 8,422,078 Stockholders’ equity Class A common stock 3,359 3,374 3,383 3,382 Additional paid in capital 194,103 195,275 194,782 194,694 Retained earnings 630,933 611,829 607,544 590,375 Accumulated other comprehensive loss (105,634) (86,926) (74,319) (80,635)Total stockholders' equity before noncontrolling interest 722,761 723,552 731,390 707,816 Noncontrolling interest (2,974) (2,596) (2,334) (2,090)Total stockholders' equity 719,787 720,956 729,056 705,726 Total liabilities and stockholders' equity$9,345,700 $9,519,526 $9,495,302 $9,127,804 __________(1)As of September 30, 2023, includes a valuation allowance of $5.6 million as a result of fair value adjustment.(2)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes derivative assets with a total fair value of $87.1 million, $75.8 million, $60.8 million and $78.3 million, respectively.(3)Consists of total long-term lease liabilities. Total short-term lease liabilities are included in other liabilities.(4)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes derivatives liabilities with a total fair value of $85.6 million, $74.5 million, $59.5 million and $77.2 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)September 30,2023 June 30,2023 March 31,2023 December 31,2022Real estate loans Commercial real estate Non-owner occupied$1,593,571 $1,645,224 $1,630,451 $1,615,716Multi-family residential 771,654 764,712 796,125 820,023Land development and construction loans 301,938 314,010 303,268 273,174 2,667,163 2,723,946 2,729,844 2,708,913Single-family residential 1,371,194 1,285,857 1,189,045 1,102,845Owner occupied 1,129,921 1,063,240 1,069,491 1,046,450 5,168,278 5,073,043 4,988,380 4,858,208Commercial loans (1) 1,452,759 1,577,209 1,497,649 1,381,234Loans to financial institutions and acceptances 13,353 13,332 13,312 13,292Consumer loans and overdrafts (2) 438,997 503,432 550,405 604,460Total loans$7,073,387 $7,167,016 $7,049,746 $6,857,194 __________________(1)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes approximately $49.3 million, $47.7 million, $46.7 million and $45.3 million, respectively, in commercial loans and leases originated under a white-label equipment financing solution launched in the second quarter of 2022.(2)As of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes $254.7 million, $312.3 million, $372.2 million and $433.3 million, respectively, in consumer loans purchased under indirect lending programs. In addition, as of September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, includes $57.5 million, $61.8 million, $62.1 million and $43.8 million, respectively, in consumer loans originated under a white-label program. Loans by Type - Held For Sale The loan portfolio held for sale consists of the following loan classes: (in thousands)September 30,2023 June 30,2023 March 31,2023 December 31,2022Loans held for sale at the lower of fair value or cost (audited)Real estate loans Commercial real estate Non-owner occupied$43,256 $— $— $—Total loans held for sale at the lower of fair value or cost (1) 43,256 — — — Loans held for sale at fair value Land development and construction loans (2) 6,931 3,726 15,527 9,424Single-family residential (3) 19,022 46,216 49,762 53,014Total loans held for sale at fair value (4) 25,953 49,942 65,289 62,438Total loans held for sale (5)$69,209 $49,942 $65,289 $62,438 __________________(1)In the third quarter of 2023, the Company transferred a New York-based CRE loan held for investment to the loans held for sale category, and recognized a valuation allowance of $5.6 million as a result of the fair value adjustment of this loan.(2)In the second quarter of 2023, the Company transferred approximately $13 million in land development and construction loans held for sale to the loans held for investment category.(3)In the third and second quarters of 2023, the Company transferred approximately $17 million and $28 million, respectively, in single-family residential loans held for sale to the loans held for investment category.(4)Loans held for sale in connection with Amerant Mortgage’s ongoing business.(5)Remained current and in accrual status at each of the periods shown. Non-Performing Assets This table shows a summary of our non-performing assets by loan class, which includes non-performing loans, other real estate owned, or OREO, and other repossessed assets at the dates presented. Non-performing loans consist of (i) nonaccrual loans, and (ii) accruing loans 90 days or more contractually past due as to interest or principal. (in thousands)September 30,2023 June 30,2023 March 31,2023 December 31,2022Non-Accrual Loans(1) (audited)Real Estate Loans Commercial real estate (CRE) Non-owner occupied$— $1,696 $— $20,057Multi-family residential 23,344 24,306 — — 23,344 26,002 — 20,057Single-family residential 2,533 1,681 1,367 1,526Owner occupied (2) 2,100 6,890 7,118 6,270 27,977 34,573 8,485 27,853Commercial loans (2)(3) 4,713 12,241 13,643 9,271Consumer loans and overdrafts (4) 1 1 1 4Total Non-Accrual Loans$32,691 $46,815 $22,129 $37,128 Past Due Accruing Loans(5) Real Estate Loans Commercial real estate (CRE) Single-family residential — 302 — 253Commercial 504 — — 183Consumer loans and overdrafts — 78 53 35Total Past Due Accruing Loans$504 $380 53 $471Total Non-Performing Loans 33,195 47,195 22,182 37,599OREO and other repossessed assets 20,181 20,181 26,534 —Total Non-Performing Assets$53,376 $67,376 $48,716 $37,599 __________________(1)Prior to the first quarter of 2023, included loan modifications that met the definition of troubled debt restructurings, or TDR, which may be performing in accordance with their modified loan terms.(2)In the third quarter of 2023, the Company sold a loan relationship in nonaccrual status and classified as Substandard with a total carrying value of $8.6 million at the time of sale. This loan relationship included a commercial loan of $4.6 million and multiple owner occupied loans totaling $4.0 million. The Company charged-off $2.1 million against the ACL in the third quarter of 2023 in connection with this sale, which had already been reserved in a prior period. Therefore, this transaction had no impact to the Company’s results of operations in the third quarter of 2023.(3)In the second quarter of 2023, we collected $2.8 million in full satisfaction of a commercial loan relationship in nonaccrual status and classified as Substandard at March 31, 2023.(4)In the fourth quarter of 2022, the Company changed its charge-off policy for unsecured consumer loans from 120 to 90 days past due. This change resulted in an additional $3.4 million in charge-offs for unsecured consumer loans in the fourth quarter of 2022.(5)Loans past due 90 days or more but still accruing. Loans by Credit Quality Indicators This table shows the Company’s loans by credit quality indicators. The Company has not purchased credit-impaired loans. September 30, 2023 June 30, 2023 September 30, 2022 (in thousands)Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1) Special MentionSubstandardDoubtfulTotal (1)Real Estate Loans Commercial Real Estate (CRE) Non-owner occupied$—$—$—$— $8,301$1,753$—$10,054 $37,364$—$—$37,364Multi-family residential — 23,344 — 23,344 — 24,306 — 24,306 — — — —Land development and construction loans — — — — 6,497 — — 6,497 — — — — — 23,344 — 23,344 14,798 26,059 — 40,857 37,364 — — 37,364Single-family residential — 3,085 — 3,085 — 2,154 — 2,154 — 1,717 — 1,717Owner occupied (2) 2,234 2,180 — 4,414 2,236 6,972 — 9,208 — 6,445 — 6,445 2,234 28,609 — 30,843 17,034 35,185 — 52,219 37,364 8,162 — 45,526Commercial loans (2)(3) 26,975 5,732 3 32,710 13,029 13,312 3 26,344 1,800 10,942 3 12,745Consumer loans and overdrafts — 1 — 1 — 70 — 70 — 947 — 947Totals$29,209$34,342$3$63,554 $30,063$48,567$3$78,633 $39,164$20,051$3$59,218 __________________(1)There were no loans categorized as “loss” as of the dates presented.(2)In the third quarter of 2023, the Company sold a loan relationship in nonaccrual status and classified as Substandard with a total carrying value of $8.6 million at the time of sale. This loan relationship included a commercial loan of $4.6 million and multiple owner occupied loans totaling $4.0 million. The Company charged-off $2.1 million against the ACL in the third quarter of 2023 in connection with this sale, which had already been reserved in a prior period. Therefore, this transaction had no impact to the Company’s results of operations in the third quarter of 2023.(3)In the second quarter of 2023, we collected $2.8 million in full satisfaction of a commercial loan relationship in nonaccrual status and classified as Substandard at March 31, 2023. 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)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 (audited) Domestic$5,067,937 $5,113,604 $4,891,873 $4,620,906 Foreign: Venezuela 1,892,453 1,912,994 1,897,199 1,911,551 Others 586,522 552,973 497,654 511,742 Total foreign 2,478,975 2,465,967 2,394,853 2,423,293 Total deposits$7,546,912 $7,579,571 $7,286,726 $7,044,199 CONTACTS:InvestorsLaura RossiInvestorRelations@amerantbank.com(305) 460-8728 MediaVictoria VerdejaMediaRelations@amerantbank.com(305) 441-5541